ICICI Bank 2016 Annual Report Download - page 10

Annual Report 2015-20168
Message from the Managing Director & CEO
Against this backdrop, at ICICI Bank, we focused on
capitalising on growth opportunities while at the same
time taking necessary steps to address challenges in the
environment. We continued to enhance our franchise, and
maintained our financial strength with robust capital levels.
I would like to share some highlights for the Bank during
the year.
We sustained robust growth in our retail loan portfolio
which grew by 23.3% and now constitutes 46.6% of
total loans.
We selectively grew our corporate portfolio focusing
on higher rated clients, with a revised limit framework
aimed at reducing concentration risk in the portfolio.
We maintained our healthy funding profile, with an
addition of ` 193.70 billion to savings deposits and
` 93.50 billion to current account deposits, and a CASA
ratio of 45.8%. We expanded our network to 4,450
branches and 13,766 ATMs.
We continued to be at the forefront of leveraging
technology to improve the customer experience. We
were the first bank in India to introduce contactless
mobile payments using smartphones. We introduced
Express Home Loans, the country’s first fully online
process for sanctioning home loans. Our digital wallet,
Pockets, has had over 3.6 million downloads. Our
banking application, iMobile, is the most comprehensive
banking app in the country, offering over 150 services,
many of which are industry firsts.
With our focus on core operating parameters, we
achieved an operating profit of ` 238.63 billion, a year-
on-year growth of 21.0%.
In view of the challenges being experienced by certain
sectors of the economy, the Bank further strengthened
its balance sheet by creating a collective contingency
and related reserve of ` 36.00 billion on a prudent
basis. This is over and above provisions made for non-
performing and restructured loans as per Reserve Bank
of India guidelines.
The Bank’s standalone profit before the above
collective contingency and related reserve and tax
was ` 157.96 billion. Even after taking into account the
above prudent reserving and provision for tax, the Bank
achieved a standalone profit after tax of ` 97.26 billion
and a consolidated profit after tax of ` 101.80 billion.
The global economy experienced challenging conditions
in fiscal 2016, with weak growth and divergent monetary
policies in advanced economies, slowdown in China
and significant decline in commodity prices. The Indian
economy continued to make progress during the year,
with improvement in key macroeconomic parameters
and focused government initiatives to drive sustainable
growth. However, the corporate sector continued to
experience challenges given the prolonged slowdown in
growth in earlier years and the global environment. Credit
growth in the banking sector was moderate, with robust
retail loan demand being offset by muted demand from
the corporate sector. While retail asset quality was healthy
and stable, the challenges facing the corporate sector
impacted the asset quality metrics and profitability of
banks. Other segments of financial services, like insurance
and mutual funds, witnessed healthy growth.