ICICI Bank 2014 Annual Report Download - page 80

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Management’s Discussion & Analysis
78
ASSET QUALITY AND COMPOSITION
Loan concentration
The Bank follows a policy of portfolio diversification and evaluates its total financing in a particular sector in
light of its forecasts of growth and profitability for that sector. The Bank’s Credit Risk Management Group
monitors all major sectors of the economy and specifically tracks sectors in which the Bank has loans
outstanding. The Bank seeks to respond to economic weakness through active portfolio management,
by restricting exposure to weak sectors and increasing exposure to the segments that are growing and
have been resilient.
The following tables set forth, at the dates indicated, the composition of the Bank’s gross advances (net
of write-offs).
` in billion, except percentages
March 31, 2013 March 31, 2014
Total
advances
% of total
advances
Total
advances
% of total
advances
Retail finance1, 2 ` 1,124.11 37.7% ` 1,418.23 40.8%
Road, ports, telecom, urban development
and other infrastructure 216.91 7.3 253.96 7.3
Power 186.06 6.2 221.43 6.4
Services – non-finance 203.52 6.8 218.77 6.3
Iron/steel and products 161.88 5.4 188.32 5.4
Services – finance 159.62 5.4 122.00 3.5
Crude petroleum/refining and
petrochemicals 88.64 3.0 103.47 3.0
Construction 70.51 2.4 83.75 2.4
Electronics and engineering 66.27 2.2 80.09 2.3
Cement 66.64 2.2 76.74 2.2
Food and beverages 69.52 2.3 71.25 2.1
Metal & products (excluding iron & steel) 44.05 1.5 69.01 2.0
Wholesale/retail trade 55.75 1.9 66.13 1.9
Mining 80.73 2.7 60.96 1.8
Shipping 45.10 1.5 59.46 1.7
Manufacturing products (excluding metal) 32.44 1.0 37.63 1.1
Other industries3312.41 10.5 340.92 9.8
Total ` 2,984.16 100.0% ` 3,472.12 100.0%
1. Includes home loans, automobile loans, commercial business loans, dealer financing and small ticket loans to
small businesses, personal loans, credit cards, rural loans and loans against securities.
2. Includes loans against FCNR (B) deposits of ` 65.03 billion at March 31, 2014 (March 31, 2013: Nil).
3. Other industries primarily include developer financing portfolio, automobiles, chemical and fertilisers, textile,
gems and jewellery, drugs and pharmaceuticals and FMCG.
4. All amounts have been rounded off to the nearest ` 10.0 million.
Management’s Discussion & Analysis