ICICI Bank 2014 Annual Report Download - page 84

Management’s Discussion & Analysis
82
Management’s Discussion & Analysis
The Bank’s aggregate investments in security receipts issued by asset reconstruction companies were
` 8.84 billion at March 31, 2014 as compared to ` 11.47 billion at March 31, 2013.
During fiscal 2014, the Bank restructured standard loans of 35 corporate and 710 agri borrowers (under a
drought relief restructuring scheme) amounting to ` 57.55 billion (outstanding loans to these borrowers
at March 31, 2014: ` 62.31 billion) as compared to 23 borrowers amounting to ` 16.78 billion during fiscal
2013 (outstanding loans to these borrowers at March 31, 2013: ` 18.14 billion). Net outstanding loans to
borrowers whose facilities have been restructured increased from ` 53.15 billion at March 31, 2013 to
` 105.58 billion at March 31, 2014.
Segment information
RBI in its guidelines on “segmental reporting” has stipulated specified business segments and their
definitions, for the purposes of public disclosures on business information for banks in India.
The standalone segmental report for fiscal 2014, based on the segments identified and defined by RBI,
has been presented as follows:
• Retail Banking includes exposures of the Bank, which satisfy the four qualifying criteria of ‘regulatory
retail portfolio’ as stipulated by RBI guidelines on the Basel II framework.
• Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies,
by the Bank which are not included in the Retail Banking segment, as per RBI guidelines for the Bank.
• Treasury includes the entire investment portfolio of the Bank.
• Other Banking includes leasing operations and other items not attributable to any particular business
segment of the Bank.
Framework for transfer pricing
All liabilities are transfer priced to a central treasury unit, which pools all funds and lends to the business
units at appropriate rates based on the relevant maturity of assets being funded after adjusting for
regulatory reserve requirement and directed lending requirements.
Retail banking segment
The profit before tax of the retail banking segment increased from ` 9.55 billion in fiscal 2013 to ` 18.30
billion in fiscal 2014 primarily due to increase in net interest income and non-interest income, offset, in
part, by increase in non-interest expenses.
Net interest income increased by 37.2% from ` 42.09 billion in fiscal 2013 to ` 57.73 billion in fiscal 2014
primarily due to growth in loan portfolio and increase in average current account and savings account
deposits of the retail banking segment.
Non-interest income increased by 19.0% from ` 30.42 billion in fiscal 2013 to ` 36.21 billion in fiscal 2014,
primarily due to higher level lending linked fees, third party product distribution fees, fees from credit card
portfolio and transaction banking fees.
Non-interest expenses increased by 21.1% from ` 63.22 billion in fiscal 2013 to ` 76.58 billion in fiscal
2014, primarily due to increase in retail lending business and increase in operating expenses due to
expansion in branch network.
In fiscal 2014, there was write-back of ` 0.94 billion compared to write-back of ` 0.24 billion in fiscal 2013
primarily due to write-back/lower provisions for loan losses in the retail asset portfolio.