ICICI Bank 2014 Annual Report Download - page 47

Annual Report 2013-2014 45
services across a spectrum of financial products to our clients and partner them while growing our
portfolio with a focus on profitability and risk mitigation.
Project Finance
The project finance environment has been challenging in recent years, with implementation delays
and issues around access to raw material. These have impacted cash flow generation by projects and
resulted in a significant slowdown in new investments. However, we expect to see improvement in the
environment going forward.
In the power sector, the Government has modified the standard bid documents to make fuel a pass
through for tariffs. The Government has approved setting up of a Coal Regulatory Authority which will
make the sector competitive and increase private sector participation. Projects in regional and inter-
regional transmission corridors are expected to be undertaken which would strengthen the national
grid. The renewable energy segment has gained momentum with more states formulating policies to
encourage new investments in this segment.
In roads and ports sectors, we expect to see an increase in activity during fiscal 2015 with new projects
likely to be awarded. The National Highway Authority of India (NHAI) is expected to award road projects
primarily through engineering, procurement & construction (EPC) contracts to improve liquidity in the
sector. The government has taken measures like rescheduling of premium for stressed projects, easing
of exit norms and re-working the Model Concession Agreement in response to the changed economic
scenario in order to revive private sector investment. In the port sector, award of new projects has picked
up pace which would result in new capacity addition. In the airport sector, six key airports currently
managed by the Airports Authority of India are expected to be privatised.
In the oil and gas sector, most of the activity is expected to be linked to demand for natural gas. The
demand for gas from priority sectors such as power and fertiliser is likely to continue, maintaining
pressure on domestic supplies of gas and resulting in increase in prices. Significant additions to LNG
import capacity have been announced with commissioning expected over the next three to four years.
Our expertise in major sectors along with innovative structuring capabilities has enabled us to cater to
the long-term financing requirements of Indian corporates. Infrastructure development is a critical area to
improve the economic potential of the country and we remain committed to partnering with companies
in promoting viable projects.
International Banking
Our international banking strategy is focused on specific growth drivers: providing end-to-end solutions
for the international banking requirements of our Indian corporate clients; leveraging economic corridors
between India and the rest of the world; and establishing ICICI Bank as the preferred bank for non-resident
Indians in key global markets. Further, ICICI Bank’s International Banking Group seeks to partner with global
corporations as they expand in India. We also seek to build stable and diversified international funding sources
and strong syndication capabilities to support our corporate and investment banking business.
Our international footprint consists of subsidiaries in the United Kingdom, Russia and Canada, branches
in the United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Dubai International Finance Centre
and Qatar Financial Centre and representative offices in the United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. The Bank’s wholly-owned subsidiary ICICI Bank UK Plc
has nine branches in the United Kingdom and a branch each in Belgium and Germany. ICICI Bank Canada