ICICI Bank 2016 Annual Report Download - page 57

55Annual Report 2015-2016
on the binomial tree model, compensation cost in scal 2016 would have been higher by ` 3.73 billion and proforma
prot after tax would have been ` 93.54 billion. On a proforma basis, the Bank’s basic and diluted earnings per share
would have been ` 16.11 and ` 16.02 respectively.
The key assumptions used to estimate the fair value of options granted during scal 2016 are given below:
Risk-free interest rate 7.58% to 8.19%
Expected life 3.16 to 5.78 years
Expected volatility 30.67% to 32.77%
Expected dividend yield 1.62% to 2.11%
Expected early exercise of options is estimated based on the historical stock option exercise pattern of the Bank. Expected
volatility is based on historical volatility determined based on observed market prices of the Bank’s publicly traded equity
shares.
The weighted average fair value of options granted during scal 2016 is ` 100.50 (March 31, 2015: ` 90.09). The weighted
average exercise price of options exercised during scal 2016 is ` 161.16 (March 31, 2015: ` 150.66)
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The Bank has undertaken various initiatives for energy conservation at its premises, further details are given under
Principle 6 of Section E of the Business Responsibility Report. The Bank has used information technology extensively in
its operations, for more details please refer the section on Information Technology under Business Overview.
GREEN INITIATIVES IN CORPORATE GOVERNANCE
In line with the ‘Green Initiative’ since the last ve years, the Bank has effected electronic delivery of Notice of Annual
General Meeting and Annual Report to those Members whose e-mail IDs were registered with the respective Depository
Participants and downloaded from the depositories viz. National Securities Depository Limited/Central Depository
Services (India) Limited. The Companies Act, 2013 and the underlying rules as well as Regulation 36 of Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, permit the dissemination
of nancial statements and annual report in electronic mode to the Members. Your Directors are thankful to the Members
for actively participating in the Green Initiative and seek your continued support for implementation of the Green Initiative.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors conrm:
1. that in the preparation of the annual accounts, the applicable accounting standards had been followed along with
proper explanation relating to material departures;
2. that they have selected such accounting policies and applied them consistently and made judgements and estimates
that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Bank at the end of the
nancial year and of the prot of the Bank for that period;
3. that they have taken proper and sufcient care for the maintenance of adequate accounting records, in accordance
with the provisions of the Banking Regulation Act, 1949 and the Companies Act, 2013 for safeguarding the assets of
the Bank and for preventing and detecting fraud and other irregularities;
4. that they have prepared the annual accounts on a going concern basis;
5. that they have laid down internal nancial controls to be followed by the Bank and that such internal nancial controls
are adequate and were operating effectively; and
6. that they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.