ICICI Bank 2014 Annual Report Download - page 6

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the growth in corporate and small & medium
enterprise lending, enhanced our monitoring of
the portfolio to enable us to take proactive action
and focused on improving our core operating
parameters. As a result, we were able to contain
the net NPA ratio to 0.82% at March 31, 2014 and
grow our profit after tax by 17.8% in fiscal 2014,
despite higher provisions as well as the impact of
tax and regulatory changes.
• Thislevelofprofitaftertaxrepresentsareturnon
average assets (RoA) of 1.76%, an improvement
of 10 basis points compared to the RoA of 1.66%
in fiscal 2013.
During the year, we added 653 branches and 834
ATMs to our network. Our network of 3,753 branches
continues to be the largest among private sector
banks in India. This is supplemented by our network
of 11,315 ATMs at March 31, 2014.
I am happy to report that during fiscal 2014 we
sustained and further improved our performance,
despite an environment marked by elevated interest
rates, low growth and significant market volatility. Given
the developments in the environment, we adopted
a balanced approach to growth, profitability and risk
management. This strategy has helped us strengthen
every area of our business. During the year, we have
further strengthened our position with continued
improvements in our key financial parameters, a strong
deposit franchise, a large and expanding distribution
network and a healthy capital position; thereby creating
a platform for robust growth.
In this context, I would like to share with you some of
our key performance highlights for the year:
• We achieved our objective of accelerating
the momentum in retail lending. Our retail
disbursements increased by about 37%,
translating into an overall year-on-year portfolio
growth of 23%.
• We continued to strengthen our funding profile,
mobilising ` 198.01 billion of CASA deposits
in fiscal 2014. The year-on-year growth in
CASA deposits was 16% and the CASA ratio
improved from 42% at March 31, 2013 to 43%
at March 31, 2014.
• Weimprovedournetinterestmarginbyover20
basis points from 3.11% in fiscal 2013 to 3.33%
in fiscal 2014.
• Our fee income grew by 12% in fiscal 2014
compared to 3.0% in fiscal 2013. This was driven
by our continued focus on granular fee income
streams from commercial banking, forex and
derivatives and retail banking.
• We continued to focus on efficiency and
productivity and further reduced the cost-to-
income ratio to 38.2%.
• Giventhemacro-economicscenario,assetquality
challenges for the banking sector intensified
during the year. In response, we calibrated
Message from the
Managing Director
& CEO
CHANDA KOCHHAR
Managing Director & CEO
4