ICICI Bank 2016 Annual Report Download - page 102

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Management’s Discussion & Analysis
Annual Report 2015-2016
1. In accordance with RBI circular dated July 16, 2015, investment in the Rural Infrastructure and Development Fund and other related
deposits has been re-grouped to line item ‘Others’ under Schedule 11 - Other Assets. Accordingly, figures of the previous periods
have been re-grouped to conform to the current year presentation.
2. Borrowings exclude preference share capital.
3. The average balances are the sum of the daily average balances outstanding except for the averages of overseas branches of ICICI
Bank which are calculated on a fortnightly basis up to September 2014. From October 2014, averages of foreign branches are
averages of daily balances.
4. All amounts have been rounded off to the nearest ` 10.0 million.
The average volume of interest-earning assets increased by 11.1% from ` 5,476.64 billion in scal 2015 to ` 6,084.83
billion in scal 2016. The increase in average interest-earning assets was primarily on account of an increase in average
advances by ` 530.54 billion and average interest-earning investments by ` 51.55 billion.
Average advances increased by 14.8% from ` 3,579.93 billion in scal 2015 to ` 4,110.47 billion in scal 2016 primarily
due to an increase in domestic advances.
Average interest-earning investments increased from ` 1,345.46 billion in scal 2015 to ` 1,397.00 billion in scal 2016,
primarily due to an increase in SLR investments by 8.5% from ` 992.42 billion in scal 2015 to ` 1,076.45 billion in
scal 2016, offset, in part, by a decrease in interest-earning non-SLR investments by 9.2% from ` 353.03 billion in scal
2015 to ` 320.55 billion in scal 2016. Average interest-earning non-SLR investments primarily include investments in
corporate bonds and debentures, PTCs, commercial papers, certicates of deposits and investments in liquid mutual
funds to deploy excess liquidity. Average interest-earning non-SLR investments decreased primarily due to a decrease
in investment in certicates of deposit, preference shares, bonds and debentures, mutual funds and PTCs, offset, in part,
by an increase in investment in commercial papers.
There was an increase in average other interest-earning assets by 4.7% from ` 551.25 billion in scal 2015 to ` 577.36
billion in scal 2016 primarily due to an increase in deposits with the RIDF and other related deposits and balances with
RBI, offset, in part, by a decrease in call and term money lent.
Average interest-bearing liabilities increased by 10.7% from ` 4,870.63 billion in scal 2015 to ` 5,391.57 billion in scal
2016 on account of an increase of ` 380.03 billion in average deposits and an increase of ` 140.91 billion in average
borrowings.
Average deposits increased due to an increase in average CASA deposits by ` 193.46 billion and an increase in average
term deposits by ` 186.57 billion.
Average borrowings increased by 8.9% from ` 1,585.11 billion in scal 2015 to ` 1,726.02 billion in scal 2016 primarily
due to an increase in term borrowings, bond borrowings and renance borrowings, offset, in part, by a decrease in
borrowings under the Liquidity Adjustment Facility of RBI.
Non-interest income
The following table sets forth, for the periods indicated, the principal components of non-interest income.
` in billion, except percentages
Particulars Fiscal 2015 Fiscal 2016 % change
Fee income1` 82.87 ` 88.20 6.4%
Income from treasury-related activities 16.93 40.60 –
Dividend from subsidiaries 15.59 15.35 (1.5)
Other income (including lease income)26.37 9.07 42.4
Total non-interest income ` 121.76 ` 153.22 25.8%
1. Includes merchant foreign exchange income and income on customer derivative transactions.
2. Includes exchange gains related to overseas operations.
3. All amounts have been rounded off to the nearest ` 10.0 million.
Non-interest income primarily includes fee and commission income, income from treasury-related activities, dividend
from subsidiaries and other income including lease income. The non-interest income increased by 25.8% from ` 121.76