COMPANY ANALYSIS – ICICI BANK LTD.

Sumit Thakur

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OVERVIEW
ICICI Bank is India's second-largest bank with total assets of Rs. 3,674.19 billion (US$
77 billion) at June 30, 2009 and profit after tax Rs. 8.78 billion for the quarter ended June
30, 2009. The Bank has a network of 1,520 branches and about 4,816 ATMs in India and
presence in 18 countries. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels
and through its specialised subsidiaries and affiliates in the areas of investment banking,
life and non-life insurance, venture capital and asset management. The Bank currently
has subsidiaries in the United Kingdom, Russia and Canada, branches in United States,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established
branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).

MANAGEMENT
Board of Directors -
The operations in the bank are done under the supervision of professional type of
management. The board of directors list is –

Mr. K. V. Kamath, Chairman

Mr. Sridar Iyengar
Mr. Lakshmi N. Mittal
Mr. Narendra Murkumbi
Dr. Anup K. Pujari
Mr. Anupam Puri
Mr. M.S. Ramachandran
Mr. M.K. Sharma

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 Mr. P.M. Sinha
Prof. Marti G. Subrahmanyam
Mr. T.S. Vijayan
Mr. V. Prem Watsa
Ms. Chanda D. Kochhar, Managing Director & CEO
Mr. Sandeep Bakhshi, Deputy Managing Director
Mr. N. S. Kannan, Executive Director & CFO
Mr. K. Ramkumar, Executive Director
Mr. Sonjoy Chatterjee, Executive Director

Senior Management –
Mr. Pravir Vohra, Group Chief Technology officer
Mr. Sandeep Batra, Group Chief officer & Comapany Secretary

AWARDS & RECOGNITIONS (2009)

 ICICI Bank Mobile Banking was adjudged "Best Bank Award for Initiatives in
Mobile Payments and Banking" by IDRBT, on May 18, 2009 in Hyderabad.

 ICICI Bank's branch free banking was adjudged "Best E-Banking Project
Implementation Award 2008" by The Asian Banker, on May 11, 2009 at the
China World Hotel in Beijing.

 ICICI Bank bags the “Best bank in SME financing (Private Sector)” at the Dun &
Bradstreet Banking awards 2009.

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 ICICI Bank NRI services wins the “Excellence in Business Model Innovation
Award” in the eighth Asian Banker Excellence in Retail Financial Services
Awards Programme.

 ICICI Bank's Rural Micro Banking and Agri-Business Group wins WOW Event
& Experiential Marketing Award in two categories - “Rural Marketing
programme of the year” and “Small Budget On Ground Promotion of the Year”.
These awards were given for Cattle Loan 'Kamdhenu Campaign' and 'Talkies on
the move campaign' respectively.

 ICICI Bank's Germany Branch has been certified by “Stiftung Warrentest”. ICICI
Bank is ranked 2nd amongst 57 savings products across 19 banks

 ICICI Bank Germany won the yearly banking test of the investor magazine €uro
in the “call money”category.

 The ICICI Bank was awarded the runner's up position in Gartner Business
Intelligence and Excellence Award for Asia Pacific for its Business Intelligence
functions.

 ICICI Bank's Organisational Excellence Group was recently awarded ISO

9001:2008 certification by TUV Nord. The scope of certification comprised
processes around consulting and capability building on methods of quality &
improvements.

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  ICICI Bank has bagged the Best Cash Management Bank in India award for the
second year in a row. The other awards have been bagged for the third year in a
row.

 ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the
Canadian Helen Keller Centre's Fifth Annual Luncheon in Toronto. The award
was given to ICICI Bank its long-standing support to this unique training centre
for people who are deaf-blind.

 ICICI Bank wins World Finance 2009 Banking Awards for Best NRI Services
Bank.

BUSINESS SERVICES –

Various business services provided at ICICI are as follows –

- Commercial banking
- Treasury banking
- Investment banking
- Capital market
- Custodial services
- Internet banking
- Agri / Rural banking
- Structural finance
- Technology finance

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Advantages
• India's largest private sector bank and second largest bank in the country.
• Credit rating at par with sovereign rating.
• State of art clearing, settlement and risk management systems.
• SWIFT interface for communication.
• Seamless delivery through focused client relationship group with a fall back.
• Online viewing of reports through web enabled reporting and Internet Banking.
• Quick turn around time for customer queries.
• Fireproof vault / cabinet for physical security storage.
• Comprehensive disaster recovery plan.

Subsidaries

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INVESTORS INSIGHT INTO THE COMPANY

ICICI continue to expand their branch network across rural and urban India, with the
branch as an integrated sales and service point for their wide range of retail products and
services. This is complemented by continuing innovation in technology-driven channels
like internet and mobile banking, to enhance choice and convenience for customers.
Meeting customer needs effectively through improved efficiency and service quality is
the core focus.

Listing of equity shares/ADSs on Stock Exchanges (with stock code)

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Market price information

The performance of the ICICI Bank equity share relative to the BSE Sensitive Index
(Sensex), BSE Bank Index (Bankex) and NYSE Financial Index during the period April
1, 2007 to March 31, 2009 is given in the following chart:

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 Shareholding pattern of ICICI Bank at March 31, 2009

Distribution of shareholding of ICICI Bank at March 31, 2009

Directors responsibility statement

The Directors confirm:

1. that in the preparation of the annual accounts, the applicable accounting standards have 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 financial year and of the profit or loss of the
Bank for that period;
3. that they have taken proper and sufficient care for the maintenance of adequate accounting
records, in accordance with the provisions of the Banking Regulation Act, 1949 and the
Companies Act, 1956 for safeguarding the assets of the Bank and for preventing and detecting

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fraud and other irregularities; and that they have prepared the annual accounts on a going
concern basis.

CREDIT RATINGS

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FINANCIAL STATEMENTS
Balance Sheet

Profit & Loss account

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Cash Flow Statements

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Financial Ratios

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Operating result data

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Financial condition

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Capital Adequacy

Non performing assets

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Key financial indicators

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CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Balance Sheet

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Consolidated profit & loss statements

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Consolidated Cash Flows

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GLOBAL PRESENCE

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INVESTORS PRESENTATION
 31% increase in profit before tax from Rs. 9.22 billion in Q1-2009 to Rs. 12.05 billion in Q1-
2010
 21% increase in profit after tax from Rs. 7.28 billion in Q1-2009 to Rs. 8.78 billion in Q1-
2010
 68% increase in consolidated profit after tax1 from Rs. 6.17 billion in Q1-2009 to Rs. 10.35
billion in Q1 2010
 Net interest income for Q1-2010 at Rs. 19.85 billion compared to Rs. 20.90 billion for Q1-
2009
 Decrease in NII mainly due to decrease in advances by 11.6%
 Net interest margin maintained at the same level as Q1-2009 at 2.4%
 Net interest margin lower compared to 2.6% in Q4- 2009 due to full impact of low margin
agricultural loans and maintenance of higher level of liquidity
 Fee income of Rs. 13.19 billion in Q1-2010; marginal decline from Q4-2009 level
 Decrease in fee income from Rs. 19.58 billion in Q1- 2009 due to slowdown in corporate
activity and distribution of retail savings and investment products
 Robust treasury income of Rs. 7.14 billion in Q1- 2010 compared to a loss of Rs. 5.94 billion
in Q1- 2009
 Total capital adequacy of 17.4% and Tier-1 capital adequacy of 13.1% as per RBI’s Basel II
framework
 Advances declined by 9% in Q1-2010 reflecting moderation in systemic credit offtake and
the Bank’s conscious strategy of risk containment
 Net NPA ratio of 2.19% at June 30, 2009 compared to 1.96% at March 31, 2009.

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COMPOSITION OF LOAN BOOK

PERFORMANCE REVIEW

Performance Review – Quarter ended June 30, 2009

• 31% increase in standalone profit before tax to Rs. 1,205 crore for the quarter ended June 30,
2009 from Rs 922 crore for the quarter ended June 30, 2008
• 21% increase in standalone profit after tax to Rs. 878 crore for the quarter ended June 30, 2009
from Rs. 728 crore for the quarter ended June 30, 2008
• Current and savings account (CASA) ratio increased to 30.4% at June 30, 2009 from 27.6% at
June 30, 2008
• Strong capital adequacy ratio of 17.4% and Tier-1 capital adequacy ratio of 13.1%; Tier-1
capital adequacy ratio highest among large Indian banks

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• 68% increase in consolidated profit after tax to Rs. 1,035 crore for the quarter ended June 30,
2009 from Rs. 617 crore for the quarter ended June 30, 2008

Profit & Loss account

• Profit before tax increased 31% to Rs. 1,205 crore (US$ 252 million) for the quarter ended June
30, 2009 (Q1-2010) from Rs. 922 crore (US$ 192 million) for the quarter ended June 30, 2008
(Q1-2009).
• Profit after tax increased 21% to Rs. 878 crore (US$ 183 million) for Q1-2010 from Rs. 728
crore (US$ 152 million) for Q1-2009.
• The net interest margin was maintained at 2.4%. Net interest income for Q1-2010 was Rs.
1,985 crore (US$ 414 million) compared to Rs. 2,090 crore (US$ 436 million) for Q1-2009. The
decrease in net interest income was mainly due to the decrease in advances by 11.6%.
• The Bank earned treasury income of Rs. 714 crore (US$ 149 million) in Q1-2010. The Bank
positioned its treasury strategy to benefit from the opportunities in equity and fixed income
markets during the quarter.
• Fee income for Q1-2010 at Rs. 1,319 crore (US$ 275 million) was maintained at about the
same level as for the quarter ended March 31, 2009 (Q4-2009). The lower level of fee income
compared to Q1- 2009 was due t reduced investment and mergers & acquisition activity in the
corporate sector and lower level of fees from distribution of retail financial products, reflecting
the continued impact of the adverse global economic conditions on the operating environment.
• Operating expenses (including direct marketing agency expenses) decreased 20% to Rs. 1,494
crore (US$ 312 million) in Q1-2010 from Rs. 1,862 crore (US$ 389 million) in Q1-2009. The
Bank achieved a reduction in the cost/average asset ratio to 1.6% for Q1-2010 from 1.9% for Q1-
2009, despite the reduction in total asset.

Balance Sheet

The Bank has continued with its strategy of strengthening its deposit franchise and maintaining
high capitalization levels. This is reflected in the Bank’s strong capital adequacy ratio, robust
growth in savings account deposits, increase in CASA ratio and reduction in wholesale term

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deposits. The Bank has also place strong emphasis on efficiency improvement and cost
rationalization. The Bank continues to invest in expansion of its branch network to enhance its
deposit franchise and create an integrated distribution network for both asset and liability
products.

In line with the above strategy, the total deposits of the Bank were Rs. 210,236 crore (US$ 43.9
billion) at June 30, 2009, compared to Rs. 218,348 crore (US$ 45.6 billion) at March 31, 2009.
During the quarter, the Bank’s savings account deposits increased by Rs. 3,423 crore (US$ 715
million) resulting in an improvement in the CASA ratio to 30.4% at June 30, 2009 from 28.7% at
March 31, 2009 and 27.6% at June 30, 2008.

The branch network of the Bank stood at 1,471 at July 24, 2009. The Bank is in the process of
implementing the 580 branch licenses received from Reserve Bank of India which would expand
the branch network to about
2,000 branches, giving the Bank a wide distribution reach in the country.

Reflecting the moderation in systemic credit offtake and the Bank’s conscious strategy of risk
containment, the loan book of the Bank decreased to Rs. 198,102 crore (US$ 41.4 billion) at June
30, 2009 from Rs. 224,146 crore (US$ 46.8 billion) at June 30, 2008. In Q1-2010, the Bank’s
agricultural loan portfolio reduced in line with the seasonal nature of the business.

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