MIRA INFORM REPORT
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Report Date : |
21.04.2011 |
IDENTIFICATION DETAILS
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Name : |
ICICI BANK LIMITED |
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Registered Office : |
Landmark, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
05.01.1994 |
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Com. Reg. No.: |
04-021012 |
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CIN No.: [Company
Identification No.] |
U65190GJ1994PLC021012 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRD100221E |
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Legal Form : |
It is a public limited liability bank.
The Bank's shares are listed on the Stock Exchanges. |
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Line of Business : |
Subject is engaged in providing a wide range of banking and financial services
including retail lending, commercial lending, trade finance and treasury
products. |
RATING & COMMENTS
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MIRA’s Rating : |
A (58) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and highly reputed bank in private
sector having excellent track. It is termed to be the 2nd largest
bank in The bank can be considered good for any normal business dealings. Rumors of liquidity problem at ICICI proved wrong, sometime back. The
Bank successfully paid Rs.200000 millions to the depositors, immediately. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
Management Non Co-Operative.
LOCATIONS
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Registered Office : |
Landmark, |
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Tel. No.: |
91-265-2324318 / 2339923-27 |
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Fax No.: |
91-265-2339926 |
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E-Mail : |
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Website : |
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Head Office : |
Zenith House, 3rd Floor, Keshavrao Khade Marg, Mahalakshmi,
Mumbai - 400 034, |
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Corporate Office : |
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Tel. No.: |
91-22-26531414 |
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Fax No.: |
91-22-26531122 |
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E-Mail : |
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Branches : |
Located at : ·
Himachal Pradesh ·
·
Haryana ·
Uttaranchal ·
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Rajasthan ·
Uttar Pradesh ·
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·
Madhya Pradesh ·
·
Jharkhand ·
·
·
Chattisgarh ·
Orissa ·
Andhra Pradesh ·
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Karnataka ·
Tamilnadu ·
·
Kerala. |
DIRECTORS
As on 31.03.2010
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Name : |
Mr. K V Kamath |
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Designation : |
Chairman |
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Qualification: |
B.E. (Mech.) (PGDBA) |
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Date of Appointment : |
01.05.1996 |
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Previous
Employment: |
Bakrie Group, |
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Name : |
Mr. Chanda D
Kochhar |
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Designation : |
Joint Managing
Director and Chief Finance Officer |
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Name : |
Mr. Sridar
Iyenger |
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Designation : |
Director |
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Name : |
Mr. Homi R.
Khusrokhan |
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Designation : |
Director |
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Name : |
Mr. Narendra
Murkumbi |
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Designation : |
Director |
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Name : |
Mr. Anup K.
Pujari |
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Designation : |
Director |
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Name : |
Mr. M.S.
Ramachandran |
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Designation : |
Director |
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Name : |
Mr. Tushaar Shah |
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Designation : |
Director |
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Name : |
Mr. M.K. Sharma |
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Designation : |
Director |
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Name : |
Mr. V. Sridar |
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Designation : |
Director |
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Name : |
Mr. V. Prem Watsa
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Designation : |
Director |
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Name : |
Mr. Sandeep
Bakhshi |
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Designation : |
Deputy Managing
Director |
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Name : |
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Designation : |
Executive Director and Chief Finance Officer |
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Name : |
Mr. K. Ramkumar |
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Designation : |
Executive Director |
KEY EXECUTIVES
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Name : |
Mr. Pravir Vohra |
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Designation : |
Goup Chief Technology Officer |
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Name : |
Mr. Sandeep Batra |
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Designation : |
Group Compliance Officer and Company Secretary |
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Audit Committee : |
Mr. Sridhar Iyengar, Chairman Mr. Homi R. Khusrokhan Mr. M K Sharma, Alternate chairman Mr. V. Sridar |
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Board Governance and Remuneration Committee: |
Mr. Sridhar Iyengar Mr. K.V. Kamath Mr. M K Sharma, Chairman Mr. V. Prem Watsa |
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Credit Committee: |
Mr. M.S. Ramachandran Mr. Narendra Mukumbi Mr. M K Sharma Mr. K V Kamath, Chairman Mr. Chanda D. Kochhar |
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Customer Service Committee: |
Mr. K.V. Kamath, Chairman Mr. Narendra Murkumbi Mr. Anup K. Pujari Mr. M.S. Ramachandran Mr. M.K Sharma Mr. Chanda D. Kochhar |
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Fraud Monitoring Committee: |
Mr. M K Sharma, Chairman Mr. V. Sridar Mr. K V Kamath Mr. Chanda D Kochhar Mr. Sandeep Bakhshi |
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Risk Committee: |
Mr. K.V. Kamath, Chairman Mr. Sridar Iyengar Mr. Anup K. Pujari Mr. V. Sridar Mr. V. Prem Watsa Mr. Chanda D. Kochhar |
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Share Transfer and Shareholders’/ Investors’ Grievance Committee |
Mr. M K Sharma, Chairman Mr. Homi R. Khusrokhan |
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Committee of Directors |
Mr. Chanda D. Kochhar, Chirperson Mr. Sandeep Bakhshi Mr. K. Ramkumar |
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Corporate Social Responsibility Committee: |
Mr. M.K. Sharma, Chairman Mr. Anup K. Pujari Mr. Chanda D. Kochhar |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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(B) Public Shareholding |
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78,450,620 |
9.36 |
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967,592 |
0.12 |
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12,603 |
-- |
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188,935,003 |
22.55 |
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451,680,100 |
53.90 |
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1,466,374 |
0.17 |
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1,258,331 |
0.15 |
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208,043 |
0.02 |
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721,512,292 |
86.11 |
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43,784,408 |
5.23 |
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53,339,694 |
6.37 |
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6,797,828 |
0.81 |
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12,507,211 |
1.49 |
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855 |
-- |
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47,870 |
-- |
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4,197,374 |
0.50 |
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345,501 |
0.04 |
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882,928 |
0.11 |
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4,087 |
-- |
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4,919,637 |
0.59 |
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952,468 |
0.11 |
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1,156,491 |
0.14 |
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116,429,141 |
13.89 |
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Total Public shareholding (B) |
837,941,433 |
100.00 |
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Total (A)+(B) |
837,941,433 |
100.00 |
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(C) Shares held by custodians and against which depository
receipts have been issued. |
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Public |
313480756 |
-- |
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Total (A)+(B)+(C) |
1151422189 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in providing a wide range of banking and financial services
including retail lending, commercial lending, trade finance and treasury
products. |
GENERAL INFORMATION
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No. of Employees : |
Not Divulged by
the management |
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Bankers : |
Reserve Bank of |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
BSR and Company Chartered Accountant |
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Address : |
Kamala Mills Compound, KPMG House, Senapati Bapat Marg, Lower Parel,
Mumbai-400013, |
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Domestic Subsidiary: |
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International Subsidiary: |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1275000000 |
Equity Shares |
Rs.10/- Each |
Rs.12750.000 Millions |
|
15000000 |
Equity Shares |
Rs.100/- Each |
Rs.1500.000 Millions |
|
350 |
Preferences Shares |
Rs.10 Million Each |
Rs.3500.000 Millions |
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Total |
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Rs.17750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1113250642 |
Equity Shares |
Rs.10/- Each |
Rs.11132.506
Millions |
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Add: 1594672 Equity Shares of Rs.10 each
fully paid up |
|
Rs.15.947
Millions |
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Less: Calls Unpaid |
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Rs.0.331
Million |
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Add: 111603 Equity Shares Forfeited |
|
Rs.0.770
Million |
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Total |
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Rs.11148.892 Millions |
Note:
- These shars will be of such class and with such rights, privileges, conditions
or restriction as may be determined by the bank in accordance with the
articles of association of the bank and subject to the legislative
provision in force for the time being in that behalf.
- Pursuant to RBI circular no. DBOD.BP.BC NO81/21.01.002/2009-10, the
issued and paid up preference shares are grouped.
As on : 28.06.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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|
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1775000000 |
Equity Shares |
Rs.10/- Each |
Rs.17750.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
1501757073 |
Equity Shares |
Rs.10/- Each |
Rs.15017.570
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULAR |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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CAPITAL AND
LIABILITIES |
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Capital |
11148.892 |
11132.898 |
14626.786 |
|
Reserves and Surplus |
505034.767 |
484197.292 |
453575.309 |
|
Deposits |
2020165.972 |
2183478.249 |
2444310.502 |
|
Borrowings |
942635.686 |
931554.542 |
656484.338 |
|
Other Liabilities and Provision |
155011.834 |
182646.642 |
428953.827 |
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TOTAL CAPITAL
AND LIABILITIES |
3633997.151 |
3793009.623 |
3997950.762 |
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ASSETS |
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Cash and Balances with Reserve Bank of |
275142.920 |
175363.342 |
293775.337 |
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Balances with Banks and Money at Call and Short Notice |
133594.020 |
124302.296 |
86635.952 |
|
Investment |
1208928.005 |
1030583.080 |
1114543.415 |
|
Advances |
1812055.971 |
2183108.492 |
2256160.827 |
|
Fixed Assets |
32126.899 |
38016.209 |
41088.975 |
|
Other Assets |
192149.336 |
241636.204 |
205746.256 |
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|
|
|
|
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TOTAL ASSETS |
3653997.151 |
3793009.623 |
3997950.762 |
PROFIT & LOSS
ACCOUNT
|
PARTICULAR |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
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INCOME |
|
|
|
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Interest Earned |
257069.331 |
310925.484 |
307842.429 |
|
Other Income |
74776.500 |
76037.271 |
88107.628 |
|
TOTAL INCOME |
331845.831 |
386962.755 |
395950.057 |
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EXPENDITURE |
|
|
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|
Interest Expended |
175925.704 |
227259.343 |
234842.423 |
|
Operating Expenses |
58598.327 |
70451.137 |
81541.819 |
|
Provision and contingencies |
57071.971 |
51670.943 |
38029.536 |
|
TOTAL
EXPENDITURE |
291596.002 |
349381.423 |
354413.778 |
|
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PROFIT AND LOSS |
|
|
|
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Net Profit for the Year |
40249.829 |
37581.332 |
41577.279 |
|
Profit Brought Forward |
28096.510 |
24363.159 |
31594.538 |
|
Total Profit /
(Loss) |
68346.339 |
61944.491 |
9982.741 |
|
|
|
|
|
|
APPROPRIATION /
TRANSFERS |
|
|
|
|
Transfer to Statutory Reserve |
10070.000 |
9400.000 |
NA |
|
Transfer to Reserve Fund |
2.170 |
4.221 |
NA |
|
Transfer to Capital Reserve |
4440.000 |
8180.000 |
NA |
|
Transfer to Investment Reserve Account |
1160.000 |
0.000 |
NA |
|
Transfer to General Reserve |
10.369 |
0.000 |
NA |
|
Transfer to Special Reserve |
3000.000 |
2500.000 |
NA |
|
Dividend (including Corporate Dividend Tax for the Previous Year Paid
During the Year) |
0.929 |
5.811 |
NA |
|
Proposed Equity Share Dividend |
13378.604 |
12245.771 |
NA |
|
Proposed Preference Share Dividend |
0.035 |
0.035 |
NA |
|
Corporate Dividend Tax |
1640.425 |
1512.143 |
NA |
|
Balance Carried Over to Balance Sheet |
34643.807 |
28096.510 |
NA |
|
|
|
|
|
|
TOTAL |
68346.339 |
61944.491 |
9982.741 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
|
|
|
|
|
Interest Earned |
58125.400 |
63091.000 |
66959.600 |
|
Income in Investment |
16585.500 |
19161.300 |
21212.300 |
|
Interest on Balance with RBI other inter Bank
Funds |
980.600 |
823.000 |
953.500 |
|
Interest / Discount on Advances / Bills |
37785.300 |
39491.700 |
41619.500 |
|
Other |
2774.000 |
3615.000 |
3174.300 |
|
Other Income |
16805.100 |
15779.300 |
17487.900 |
|
Total Income |
74930.500 |
78870.300 |
84447.500 |
|
Interest Expended |
38214.900 |
41047.200 |
43842.200 |
|
Operating Expense |
14834.900 |
15703.700 |
17179.200 |
|
Total Expenses |
14834.900 |
78870.300 |
17179.200 |
|
Operating Profit Before Provisions and
Contingencies |
21880.700 |
41047.200 |
23426.100 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
Provisions and Contingencies |
7978.200 |
6411.400 |
4642.700 |
|
Profit
Before Tax |
13902.500 |
15708.000 |
18783.400 |
|
Tax |
3642.700 |
3345.300 |
4413.200 |
|
Profit After Tax |
10259.800 |
12362.700 |
14370.200 |
|
-Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
-Prio Period items |
0.000 |
0.000 |
0.000 |
|
Net Profit |
10259.800 |
12362.700 |
14370.200 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors : Not Available
News Release
January 24, 2011
Performance Review – Quarter ended December 31, 2010
• 30.5% year-on-year increase in profit after tax to ` 14.370 Millions
(US$ 321 million) for the quarter ended December 31, 2010 (Q3-2011) from `
11.010 Millions (US$ 246 million) for the quarter ended December 31, 2009
(Q3-2010)
• 77.5% year-on-year increase in consolidated profit after tax to `
20.390 Millions (US$ 456 million) for Q3-2011 from ` 11.490 Millions (US$ 257
million) for Q3-2010
• 36.0% year-on-year increase in consolidated profit after tax to `
45.250 Millions (US$ 1.0 billion) for the nine months ended December 31, 2010
(9M-2011) from ` 33.280 Millions (US$ 744 million) for the nine months ended
December 31, 2009 (9M- 2010)
• Current and savings account (CASA) ratio increased to 44.2% at
December 31, 2010 from 39.6% at December 31, 2009
• Net non-performing asset ratio declined to 1.16% at December 31, 2010
from 2.19% at December 31, 2009
• Provision coverage ratio increased to 71.8% at December 31, 2010 from
69.0% at September 30, 2010 (51.2% at December 31, 2009)
• Strong capital adequacy ratio of 19.98% and Tier-1 capital adequacy of
13.72% The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting
held at Mumbai today, approved the audited accounts of the Bank for the quarter
ended December 31, 2010.
Profit and loss
account
• Profit after tax increased 30.5% to ` 14.370 Millions (US$ 321
million) for Q3-2011 from ` 11.010 Millions (US$ 246 million) for Q3-2010.
• Net interest income increased 12.3% to ` 23.120 Millions (US$ 517
million) in Q3-2011 from ` 20.580 Millions (US$ 460 million) in Q3-2010.
• Fee income increased 14.3% to 16.250 Millions (US$ 363 million) in Q3-
2011 from ` 14.220 Millions (US$ 318 million) in Q3-2010.
• Operating
expenses (including direct marketing agency expenses) increased 27.2% to ` 17.070
Millions (US$ 382 million) in Q3-2011 from ` 13.420 Millions (US$ 300 million) in
Q3-2010, primarily due to costs relating to new branches added over the last
year and full impact of cost of erstwhile Bank of Rajasthan (e-BOR) during the
quarter.
• Provisions
decreased 53.6% to ` 46.500 Millions (US$ 104 million) in
Q3-2011 from ` 10.020
Millions (US$ 224 million) in Q3-2010.
• Profit
after tax for 9M-2011 was ` 36.990 Millions (US$ 827 million) compared
to ` 30.190
Millions (US$ 675 million) for 9M-2010.
Operating review
The Bank has continued with its strategy
of pursuing profitable credit growth by leveraging on its improved fund mix,
lower credit costs and efficiency improvement and cost rationalisation. In this
direction, the Bank continues to leverage its expanded branch network to
enhance its deposit franchise and create an integrated distribution network for
both asset and liability products. At December 31, 2010, the Bank had 2,512
branches, the largest branch network among private sector banks in the country.
Credit growth
Advances increased by 15.3% year-on-year to ` 2066.920 Millions (US$
46.2 billion) at December 31, 2010 from ` 1792.690 Millions (US$ 40.1 billion)
at December 31, 2009.
Deposit growth
Savings deposits
increased by 26.5% year-on-year to ` 645.770 Millions (US$ 14.4 billion) at
December 31, 2010 from ` 510.540 Millions (US$ 11.4 billion) at December 31,
2009 and the CASA ratio increased to 44.2% at December 31, 2010 from 39.6% at
December 31, 2009.
Capital adequacy
The Bank’s capital adequacy at December 31, 2010 as per Reserve Bank of
India’s guidelines on Basel II norms was 19.98% and Tier-1 capital adequacy was
13.72%, well above RBI’s requirement of total capital adequacy of 9.0% and
Tier-1 capital adequacy of 6.0%.
Asset quality
Net non-performing assets decreased by 34.9% to ` 28.730 Millions (US$ 643 million) at December 31, 2010 from 44.160 Millions (US$ 988 million) at December 31, 2009. The Bank’s net non-performing asset ratio decreased to 1.16% at December 31, 2010 from 2.19% at December 31, 2009. The Bank’s provisioning coverage ratio computed in accordance with the RBI guidelines at December 31, 2010 was 71.8% compared to 51.2% at December 31, 2009.
Consolidated
profits
Consolidated profit after tax of the Bank increased by 36.0% to ` 45.250 Millions (US$ 1.0 billion) for 9M-2011 compared to ` 33.280 Millions (US$ 744 million) for 9M-2010. Consolidated profit after tax for Q3-2011 increased
by 77.5% to ` 20.390 Millions (US$ 456 million) compared to ` 11.490 Millions (US$ 257 million) for Q3-2010. This includes transfer of surplus in the nonparticipating policyholders' funds of ICICI Prudential Life Insurance Company (ICICI Life) on a quarterly basis, as compared to an annual basis as permitted earlier, as per Insurance Regulatory and Development Authority (IRDA) circular dated December 27, 2010. The Bank’s consolidated profit after tax for 9M-2011 and Q3-2011 include ` 38.400 Millions (US$ 86 million) on account of this transfer.
Insurance
subsidiaries
ICICI Life
maintained its position as the largest private sector life insurer based on new
business retail weighted received premium during April- November 2010. ICICI
Life’s new business premium increased by 21.3% to ` 46.500 Millions (US$ 1,040
million) in 9M-2011 from ` 3,833 crore (US$ 857 million) in 9M-2010. ICICI
Life’s unaudited new business profit (NBP) in 9M-2011 was ` 57.900 Millions
(US$ 130 million). Assets held increased by 23.7% to ` 663.340 Millions (US$ 14.8
billion) at December 31, 2010 from ` 536.190 Millions (US$ 12.0 billion) at
December 31, 2009. ICICI Life’s profit after tax for 9M-2011 was ` 51.300
Millions (US$ 115 million). ICICI Life’s NBP and profit after tax for Q3-2011
were ` 10.000 Millions (US$ 22 million) and 61.400 Millions (US$ 137 million)
respectively. ICICI Life’s profit after tax for 9M- 2011 and Q3-2011 include `
52.000 Millions (US$ 116 million) on account of transfer of surplus in the
non-participating policyholders' funds on a quarterly basis, as compared to an
annual basis as permitted earlier, as per Insurance Regulatory and Development
Authority (IRDA) circular dated December 27, 2010.
ICICI Lombard
General Insurance Company (ICICI General) maintained its leadership in the
private sector during 9M-2011 with a market share of 9.8%. ICICI General’s
premium income in 9M-2011 increased by 29.4% to
`32.50 Millions (US$ 727 million) from 25.120 Millions (US$ 562 million)
in 9M-2010. ICICI General’s profit after tax was ` 21.000 Millions (US$ 47
million) in 9M-2011 compared to ` 13.200 Millions (US$ 30 million) in 9M-2010.
ICICI General’s profit after tax for Q3-2011 was ` 74.000 Millions (US$ 17
million).
History:
ICICI Bank, a private sector bank under the house of ICICI was
incorporated in the year of 1994. It is a multi-specialist financial service
provider with leadership position across the spectrum of financial services in
The merger and acquisition are the key kind to bank. The Bank of Madura (BOM)
got merged with ICICI Bank during the period 2000-01 and in 2001 ICICI
(Financial Institution) merged with ICICI Bank. The two subsidiaries of ICICI
Limited viz ICICI Personal Financial Services and ICICI Capital Services were
also merged with the ICICI Bank on March 2002. During May,2003 the bank has
acquired Transamerica Appple Distribution Finance Private Limited and renamed
it to ICICI Distribution Finance Private Limited which is primarily engaged in
financing in the two-wheeler segment.
Bank received many awards and recognitions during the year 2005-06. Some of
them are Best Bank in
As on April 2007 Sangli Bank Limited was merged with ICICI Bank Limited
In the Wholesale Banking segment, the bank has achieved a significant milestone
in the market making activity by expanding the product suite to include foreign
exchange options. As on May 2007 the bank have market capitalisation of Rs
778340.000 Millions. In 2007 June ICICI Bank has entered into an agreement with
networking solutions provider GTL Limited to lease out its call centre facility
at Mahape worth of around Rs 1000.000 Millions for a period of 25 years. In
August of 2007 the bank has availed of a $200-million worth Line of Credit
(LoC) from The Export-Import Bank of Korea (Korea Exim bank) for the purpose of
the Hong Kong branch of ICICI Bank gets funds from Korea Exim bank, and the
bank lends foreign currency loans to domestic companies investing in Korea and
the bank had taken a similar LoC of $200 million from the Japan Bank for
International Cooperation (JBIC) last year. In 2008 ICICI Bank, come a cropper
in the global stage when it comes to their brand value, which is $2,603
million, it reveals by the study of London-based consultancy Brand Finance
Appropriations:
The profit and loss
account shows a profit after tax of Rs. 40.25 billion after provisions and contingencies
of Rs. 43.87 billion and all expenses. The disposable profit is Rs. 68.35
billion, taking into account the balance of Rs. 28.10 billion brought forward
from the previous year. The Directors
have recommended a dividend at the rate of Rs. 12 per equity share of face
value Rs. 10 for the year.
MERGER
OF THE BANK OF RAJASTHAN LIMITED WITH ICICI BANK
The Board of Directors of ICICI Bank and the Board of
Directors of the Bank of Rajasthan Limited (Bank of Rajasthan) at their
respective Meetings held on May 23, 2010, approved the scheme of amalgamation
of Bank of Rajasthan with ICICI Bank. The amalgamation is subject to approval
of RBI and Members of both the Banks. Approval of the Members of ICICI Bank is
being sought at an extraordinary general meeting scheduled on June 1, 2010. The proposed amalgamation would
substantially enhance ICICI Bank’s branch network, already the largest among
Indian private sector banks, and especially strengthen its presence in northern
and western
About
Bank of Rajasthan
Bank of Rajasthan is a listed old Indian private sector bank
with its corporate office at Mumbai in Maharashtra and registered office at
ICICI
Wealth Management Inc., a subsidiary of ICICI Bank Canada, has been dissolved
effective December 31, 2009.
As approved by the Central Government vide letter
dated April 9, 2010 under Section 212(8) of the Companies Act, 1956, The Bank
will make available these documents/details upon request by any Member of the
Bank. These documents/details will be available on the Bank’s website
www.icicibank. com and will also be available for inspection by any Member of
the Bank at its Registered Office and Corporate Office and also at the
registered offices of the concerned subsidiaries. As required by Accounting
Standard-21 (AS-21) issued by the Institute of Chartered Accountants of India,
the Bank’s consolidated financial statements included in this Annual Report
incorporate the accounts of its subsidiaries and other entities.
DIRECTORS
The Members at their Fifteenth Annual General Meeting held
on June 29, 2009, approved the appointment of Sandeep Bakhshi, Deputy Managing
Director, N. S. Kannan, Executive Director and
CFO and K. Ramkumar, Executive Director. Reserve Bank of India (RBI) vide
its letter dated July 2, 2009 approved the appointment of Sandeep Bakhshi.
RBI vide its letter dated June 16, 2009 approved the appointment of N.
S. Kannan and K. Ramkumar.
T. S. Vijayan, Chairman, Life Insurance Corporation of
The Board at its Meeting held on January 21, 2010 appointed
Homi R. Khusrokhan, former Managing Director, Tata Chemicals Limited and V.
Sridar, former Chairman, National Housing Bank and former Chairman and Managing Director, UCO Bank, as additional
Directors effective January 21, 2010. Further, the Board at its Meeting held on
April 30, 2010 appointed Tushaar Shah, Senior Fellow at the International Water
Management Institute and former Director of the
Sonjoy Chatterjee, Executive Director resigned from the
services of the Bank effective April 30, 2010.
The Board at its Meeting held on April 30, 2010 approved a
proposal for the appointment of Rajiv Sabharwal as a whole time Director of the
Bank subject to approval of RBI. Approval of the Members is being sought at the
current AGM for the appointment of Rajiv Sabharwal as a wholetime Director of
the Bank for a period of five years effective only from the date of receipt of
RBI approval.
Audit
Committee
Terms
of Reference
The Audit Committee provides direction to the audit function
and monitors the quality of internal and statutory audit. The responsibilities
of the Audit Committee include overseeing the financial reporting process to
ensure fairness, sufficiency and credibility of financial statements,
recommendation of appointment and removal of central and branch statutory
auditors and chief internal auditor and fixation of their remuneration,
approval of payment to statutory auditors for other permitted services rendered
by them, review of functioning of Whistle Blower Policy, review of the
quarterly and annual financial statements before submission to the Board,
review of the adequacy of internal control systems and the internal audit
function, review of compliance with inspection and audit reports and reports of
statutory auditors, review of the findings of internal investigations, review
of statement of significant related party transactions, review of management
letters/letters on internal control weaknesses issued by statutory auditors,
reviewing with the management, the statement of uses/application of funds
raised through an issue (public issue, rights issue, preferential issue, etc.),
the statement of funds utilized for the purposes other than those stated in the
offer document/prospectus/notice and the report submitted by the monitoring
agency, monitoring the utilisation of proceeds of a public or rights issue and
making appropriate recommendations to the Board to take steps in this matter,
discussion on the scope of audit with external auditors and examination of
reasons for substantial defaults, if any, in payment to stakeholders. The Audit
Committee is also empowered to appoint/oversee the work of any registered
public accounting firm, establish procedures for receipt and treatment of
complaints received regarding accounting and auditing matters and engage
independent counsel as also provide for appropriate funding for compensation to
be paid to any firm/ advisors. In addition, the Audit Committee also exercises
oversight on the regulatory compliance function of the Bank. The Audit
Committee is also empowered to approve the appointment of the CFO (i.e., the
whole-time Finance Director or any other person heading the finance function or
discharging that function) after assessing the qualifications, experience and
background, etc. of the candidate.
Board
Governance, Remuneration and Nomination
Committee
Terms
of Reference
The functions of the Committee include recommendation of
appointments to the Board, evaluation of the performance of the Managing
Director and CEO and wholetime Directors
on predetermined parameters, recommendation to the Board of the remuneration
(including performance bonus and perquisites) to wholetime Directors, approval
of the policy for and quantum of bonus payable to the members of the staff,
framing of guidelines for the Employees Stock Option Scheme and recommendation
of grant of ICICI Bank stock options to the employees and wholetime Directors
of ICICI Bank and its subsidiary companies.
Corporate
Social Responsibility Committee
Terms
of reference
The Board of Directors at its Meeting held on October 30,
2009 constituted the Corporate Social Responsibility Committee. The Committee
is empowered to review the corporate social responsibility initiatives
undertaken by the ICICI Group and the ICICI Foundation for Inclusive Growth,
make recommendations to the Board with respect to the corporate social
responsibility initiatives, policies and practices of the ICICI Group and to
review and implement, if required, any other matter related to corporate social
responsibility initiatives as recommended/ suggested by RBI or any other body.
Credit
Committee
Terms
of reference
The functions of the Committee include review of developments
in key industrial sectors and approval of credit proposals as per authorisation
approved by the Board.
Customer
Service Committee
Terms
of reference
The functions of this Committee include review of customer service
initiatives, overseeing the functioning of the Customer Service Council and
evolving innovative measures for enhancing the quality of customer service and
improvement in the overall satisfaction level of customers.
Fraud
Monitoring Committee
Terms
of reference
The Committee monitors and reviews all frauds involving an
amount of Rs. 10.0 million and above so as to identify the systemic lacunae, if
any, that facilitated perpetration of the fraud and put in place measures to
rectify the same, identify the reasons for delay in detection, if any, and
reporting to top management of the Bank and RBI, monitor progress of
investigation, and recovery position, ensure that staff accountability is
examined at all levels in all the cases of frauds and action, if required, is
completed quickly without loss of time and review of efficacy of the remedial
action taken to prevent recurrence of frauds, such as strengthening of internal
controls and putting in place other measures as may be considered relevant to
strengthen preventive measures against frauds.
Business
Overview
ECONOMIC
OVERVIEW
During fiscal 2010,
FINANCIAL
SECTOR OVERVIEW
During fiscal 2010, the year-on-year growth in non-food bank
credit declined from 17.8% in March 2009 to 16.9%
in March 2010. Based on data published by RBI, for the period
upto February 26, 2010, year-on-year growth in nonfood bank credit was driven
primarily by a 24.4% growth in credit to agriculture and allied activities and
a 20.1% growth in credit to the industrial sector. Within the industrial
sector, credit to infrastructure grew by 42.3% during this period. At February
26, 2010, industry accounted for 43.2% of non-food gross bank credit, retail
credit or 20.1%, agriculture and allied activities for 12.8%, trade for 5.7%,
real estate for 3.2% and other sectors for the balance 15.0%. During fiscal
2010, the growth in total deposits was 17.0% as compared to a growth of 19.9%
during fiscal 2009. The decline in growth was primarily due to a moderation in
growth in time deposits from 23.9% in fiscal 2009 to 16.2% in fiscal 2010.
Demand deposits after witnessing a decline of 0.2% in fiscal 2009 grew by 22.2%
in fiscal 2010. The credit-deposit ratio remained within the range of
68.0%-72.0% during fiscal 2010 and was about 72.0% in March 2010. The recovery
in economic activity and improvement in financial markets during fiscal 2010
led to a revival in the demand for financial savings and investment products,
benefiting the life insurance and mutual fund sectors. First year retail
premium underwritten in the life insurance sector increased by 16.7% (on
weighted received premium basis) to Rs. 550.24 billion in fiscal 2010 with the
private sector’s retail market share (on weighted received premium basis) at
52.3% in fiscal 2010. Total assets under management (on average assets basis)
of mutual funds increased by 51.5% from Rs. 4,932.85 billion in March 2009 to
Rs. 7,475.25 billion in March 2010. Gross premium in the non-life insurance
sector (excluding specialised insurance institutions) grew by 13.4% to Rs.
347.55 billion in fiscal 2010 compared to growth rates of 9.2% in fiscal 2009
and 12.3% in fiscal 2008, with the private sector’s market share at 40.9% in
fiscal 2010. There were a number of key policy developments in the banking
sector during fiscal 2010. In continuation of the liberalisation of the banking
sector, in June 2009, banks were allowed to open offsite ATMs without prior
approval from RBI. The branch authorisation policy was also liberalised in
December 2009 and banks were allowed to open branches in Tier III-VI cities
without prior RBI approval. In August 2009, RBI also issued guidelines relating
to the issuance and operation of mobile phone based pre-paid payment
instruments. In July 2009, RBI issued a time schedule for the introduction of
advanced approaches of the Basel II framework in India whereby banks are
required to apply to RBI for migration to internal models approach for market
risk and the standardised approach for operational risk earliest by April 1,
2010 and for advanced measurement approach for operational risk and internal
ratings based approaches for credit risk earliest by April 1, 2012. RBI also
initiated several measures to increase systemic transparency and customer
convenience. In April 2010, RBI issued guidelines directing banks to replace the
benchmark prime lending rate system with a base rate system effective July
2010. The guidelines recommend calculating the base rate taking into
consideration cost elements that can be clearly identified and are common
across borrowers. RBI also issued guidelines revising the method of payment of
interest on savings accounts to a daily average basis effective April 1, 2010.
During fiscal 2010, with an improvement in market conditions, RBI also
initiated several measures to maintain systemic stability. In November 2009,
the provisioning requirement for advances to commercial real estate classified
as standard assets was increased from 0.4% to 1.0%. In December 2009, RBI
directed banks to achieve a total provisioning coverage ratio of 70% by
September 2010. In February 2010, in its master circular on capital adequacy,
RBI increased the capital requirements relating to securitisation exposures and
provided enhanced guidance on valuation adjustments for illiquid investments
and derivatives. The guidelines also increased disclosure requirements for
credit risk mitigations and securitised exposures. The Indian financial sector
has remained resilient to the volatility in global markets. The banking sector
is healthyand remains well capitalised to benefit from the recovery in domestic
economic activity.
ORGANISATION
STRUCTURE
During fiscal 2010, given the significant expansion in Their
branch network and Their increased focus on customer service, They reorganised Their organisation structure to
provide greater empowerment to Their branches with enhanced senior management
oversight of their operations. They
expect Their branch network to serve as an integrated channel for
deposit mobilisation, retail asset origination and distribution of third party
products. At the same time, They seek to
ensure effective control and supervision and consistency in standards across
the organisation. The organisation is structured into the following principal
groups:
- Retail
Banking Group: The retail sales and service architecture has been
organised into four geographies. These have been further divided into
zonal and regional structures. The Retail Strategy, Product and Policy Group has been formed to develop
customer-segment specific strategies, including product design and service
propositions. The Retail Banking Group is also responsible for inclusive
and rural banking.
- Wholesale
Banking Group, comprising the Corporate Banking Group, Commercial Banking
Group, Investment Banking Group, Project Finance Group, Financial Institutions
and Capital Markets Group, Government Banking Group and Mid-corporate
and Small Enterprises Group.
International Banking Group, comprising the Bank’s international
operations, including operations in various overseas markets as well as
products and services for non-resident Indians, international trade
finance, correspondent banking and wholesale resource mobilisation.
- Global
Markets Group, comprising Their global client-centric treasury operations.
- Corporate
Centre, comprising financial reporting, planning and strategy, asset
liability management, investor relations, secretarial, corporate branding,
corporate communications, risk management, compliance, internal audit,
legal, financial crime prevention and reputation risk management, accounts
and taxation and the Bank’s proprietary trading operations across various
markets.
- Human
Resources Management Group, which is responsible for the Bank’s
recruitment, training, leadership development and other personnel
management functions and initiatives.
- Global
Operations and Middle Office Groups, which are responsible for back-office
operations, controls and monitoring for Their domestic and overseas
operations.
- Customer
Services Group, which is responsible for initiatives towards building and
maintaining long-term customer relationships.
- Information
Technology Group, which is responsible for enterprise-wide technology
initiatives, with dedicated teams serving individual business groups and
managing information security and shared infrastructure.
- Global
Infrastructure and Administration Group, which is responsible for
management of corporate facilities and administrative support functions.
BUSINESS
REVIEW
During fiscal 2010, the Bank continued to focus on improving
its funding mix, conserving capital, liquidity management and risk containment
and increasing operating efficiencies. They
continued to grow Their branch network and became the first private
sector bank in
Retail
Banking
Retail credit growth in the banking system continued to
moderate in fiscal 2010. As per data published by RBI for the period upto
February 26, 2010, year-on-year retail credit growth was about 5%. Their retail
disbursements remained moderate during fiscal 2010, as They focused on opportunities in residential
mortgages and vehicle finance, while reducing Their unsecured retail loan and
credit card receivables portfolio. There were also substantial repayments and
prepayments from the portfolio during the year. Their retail portfolio
(including builder finance and dealer funding) at March 31, 2010 was Rs. 790.45
billion, constituting 43.6% of Their overall loan portfolio. Within the retail
portfolio, unsecured retail loans where They
had witnessed higher credit losses, declined from about 10% of Their
loan portfolio at March 31, 2008 to 8% at March 31, 2009 and further to below
5% at March 31, 2010. They continue to
believe that retail credit in
Cross-selling new products and the products of Their life
and general insurance subsidiaries to Their existing customers is a key focus
area for the Bank. Cross-sell allows us to deepen Their relationship with Their
existing customers and helps us reduce origination costs as well as earn fee income.
They will continue to focus on
cross-sell as a means to improve profitability and offer a complete suite of
products to Their customers. They
continue to leverage Their multi-channel network for distribution of
third party products like mutual funds and insurance products.
Small
Enterprises
They have segmented
offerings for the small and medium enterprises sector while adopting a cluster
based financing approach to fund small enterprises that have a homogeneous profile
such as engineering, information technology, transportation and logistics and
pharmaceuticals. They also offer supply
chain financing solutions to the channel partners of corporate clients and
business loans (in the form of cash credit/overdraft/term loans) to meet the
working capital needs of small businesses. They
are also proactively reaching out to small and medium enterprises
through various initiatives such as the small and medium enterprises CEO Knowledge
Series — a platform to mentor and assist entrepreneurs, small and medium
enterprises toolkit — an online business and advisory resource for small and
medium enterprises, and Emerging India Awards — a small and medium enterprises
recognition platform. They have a long
tradition of partnering entrepreneurs early in their growth, building lasting
and mutually beneficial relationships that deliver recurring value to the Bank.
Expanding Their profitable small enterprises franchise and identifying and
nurturing relationships with medium enterprises having growth potential will be
key priorities in this area.
Corporate
Banking
Their corporate banking strategy is based on providing
comprehensive and customised financial solutions to Their corporate customers.
They offer a complete range of corporate
banking products including rupee and foreign currency debt, working capital
credit, structured financing, syndication and commercial banking products and
services. Their corporate and investment banking franchise is built around a
core relationship team that has strong relationships with almost all of the
country’s corporate houses. The relationship team is product agnostic and is
responsible for managing banking relationships with clients. They have also put in place product specific teams
with a view to focus on designing financial solutions for clients. The
investment banking team is responsible for working with the relationship team
in
Project
Finance
Given the enhanced focus on infrastructure development in
the country, They expect a significant
increase in infrastructure financing requirements going forward. The power
sector is expected to witness continued large investments. Besides requirements
arising out of capacity additions, significant investments are also projected
in private sector transmission projects for the strengthening of the national
grid. Further, They also expect
substantial development in the renewable energy segment. With the scale up in
gas production at KG-D6 block, significant investments in trunk pipeline
network are expected. The improved gas availability and pipeline connectivity
is also expected to drive the expansion of city gas network.
The growth in telecom infrastructure is expected to continue
on account of decline in tariffs and increased focus on rural markets. Further,
the proposed allotment of additional spectrum is expected to result in
significant investments for rollout of services. The transportation sector has
witnessed renewed momentum with the government bidding out new projects for
development of national and state highways. The port sector is also witnessing
creation of new capacities in both the bulk and container cargo segments along
with increased private sector participation. The railway sector is also
expected to witness investments for modernisation of railways stations,
logistics development and expansion of dedicated freight corridors.
Further, They also
expect increased private sector investments in the development of water supply,
education and healthcare infrastructure. For example, the government is in the
process of inviting bids from private companies for setting up about 2,500
model schools on a public-private-partnership basis. They will continue to position ourselves to cater
to the financing requirements in the infrastructure sector. The key to Their
project finance proposition is Their constant endeav Their to add value to
projects through financial structuring to ensure bankability. These services
are backed by innovative financial structuring, sectoral expertise and sound due
diligence techniques.
International Banking
Their international strategy is focused on building a retail
deposit franchise, meeting the foreign currency needs of Their Indian corporate
clients, taking select trade finance exposures linked to imports to
KEY
SUBSIDIARIES
ICICI
Prudential Life Insurance Company
ICICI Prudential Life Insurance Company (ICICI Life)
maintained its market leadership in the private sector with an overall market
share of 9.3% based on retail new business weighted received premium in fiscal
2010. ICICI Life’s total premium increased by 7.7% to Rs. 165.32 billion in
fiscal 2010 with renewal premiums increasing by 19.4%. ICICI Life’s new
business annualised premium equivalent was Rs. 53.45 billion in fiscal 2010.
ICICI Life achieved its first year of accounting profits since inception in
fiscal 2010 with a profit after tax of Rs. 2.58 billion. The expense ratio has
decreased from 11.8% in fiscal 2009 to 9.1% in fiscal 2010. Assets held at
March 31, 2010
were Rs. 573.19 billion compared to Rs. 327.88 billion at
March 31, 2009.
ICICI Life’s unaudited New Business Profit in fiscal 2010
was Rs. 10.15 billion. Life insurance companies make accounting losses in
initial years due to business set-up and customer acquisition costs in the
initial years and reserving for actuarial liability. Further, in
ICICI
Lombard General Insurance Company
ICICI Lombard General Insurance Company (ICICI General)
maintained its leadership in the private sector with an overall market share of
9.5% in fiscal 2010. ICICI General’s gross written premium during fiscal 2010
was Rs. 34.32 billion. The industry continued to witness a slowdown in growth
on account of de-tariffication of the general insurance industry whereby
insurance premiums were freed from price controls, resulting in a significant
reduction in premium rates. The industry also continued to witness the impact
of motor third party insurance pool for third party insurance of commercial
vehicles. ICICI General achieved a profit after tax of Rs. 1.44 billion in
fiscal 2010 compared to Rs. 0.24 billion in fiscal 2009. ICICI Prudential Asset
Management Company ICICI Prudential Asset Management Company (ICICI AMC) was
the third largest asset management company in
ICICI
Venture Funds Management Company Limited
ICICI Venture Funds Management Company Limited (ICICI
Venture) maintained its leadership position in private equity in
ICICI
Bank UK PLC
ICICI Bank UK PLC (ICICI Bank
ICICI
Bank
ICICI Bank
2010 was CAD 35.4 million compared to CAD 33.9 million in
fiscal 2009. At March 31, 2010, ICICI Bank
Management’s
Discussion and Analysis
BACKGROUND
The economic environment in
2010. In view of inflationary pressures and the recovery in
economic activity, the Reserve Bank of India (RBI) commenced the exit of the
accommodative stance adopted in response to the global financial crisis. RBI
increased the statutory liquidity ratio (SLR) by 100 basis points from 24.0% to
25.0% in October 2009, the cash reserve ratio (CRR) by 75 basis points to 5.75%
in February 2010 and the repo and reverse repo rates by 25 basis points each to
5.0% and 3.5% respectively in March 2010. The RBI in its annual policy review
in April 2010 announced a further increase of 25 basis points each in CRR to
6.0%, repo rate to 5.25% and reverse repo rate to 3.75%. As a result of
inflationary concerns, increased policy rates and the large government
borrowing programme, the yield on 10-year government securities increased by 81
basis points from 7.01% at March 31, 2009 to 7.82% at March 31, 2010. During
fiscal 2010, equity markets recovered significantly with the BSE Sensex
increasing by 80.5% from 9,709 at March 31, 2009 to 17,528 at March 31, 2010.
The rupee appreciated from Rs. 51.0 per US dollar at year-end fiscal 2009 to
Rs. 45.1 per US dollar at year-end fiscal 2010. The trends in the economy were
also reflected in the banking sector. Non-food credit growth at end December
2009 was 12.7% on a year-on-year basis as compared to 17.8% at March 2009.
There was some revival in credit growth during the fourth quarter of fiscal
2010 with non-food credit growth reaching 16.9% at end-fiscal 2010. Growth in
total deposits moderated from 19.9% on a year-on-year basis at end-fiscal 2009
to 17.0% at year-end fiscal 2010. The moderation was due to a lower growth of
16.2% in term deposits during fiscal 2010 compared to 23.9% in fiscal 2009
while demand deposits increased by 22.2% compared to a decline of 0.2% in
fiscal 2009.
STANDALONE
FINANCIALS AS PER INDIAN GAAP
Summary
During fiscal 2010, They
accorded priority to improving Their low cost deposit base, conserving
capital, improving cost efficiency and improving Their credit quality. The key
elements of Their strategy for fiscal 2011 will include continued growth in
CASA and retail term deposits, capitalising on opportunities in select asset
segments including home loans, other secured retail loans, project finance and
commercial banking activities, maintaining cost efficiency even as absolute
level of expenses is expected to increase in line with business growth and continued
focus on reduction in credit losses. Profit before provisions and tax increased
by 9.0% from Rs. 89.25 billion in fiscal 2009 to Rs. 97.32 billion in fiscal
2010 primarily due to an increase in treasury income from Rs. 4.43 billion in
fiscal 2009 to Rs. 11.81 billion in fiscal 2010 and a 16.8% decrease in
non-interest expenses from Rs. 70.45 billion in fiscal 2009 to Rs. 58.60
billion in fiscal 2010, offset, in part, by a 3.0% decrease in net interest
income from Rs. 83.67 billion in fiscal 2009 to Rs. 81.14 billion in fiscal
2010 and a 13.4% decrease in fee income from Rs. 65.24 billion in fiscal 2009
to Rs. 56.50 billion in fiscal 2010. Provisions and contingencies (excluding
provision for tax) increased by 15.2% from Rs. 38.08 billion in fiscal 2009 to
Rs. 43.87 billion in fiscal 2010 due to a higher level of specific provisioning
on non-performing retail loans and restructured corporate loans. Profit before
tax increased by 4.5% from Rs. 51.17 billion in fiscal 2009 to Rs. 53.45
billion in fiscal 2010. Tax provision decreased from Rs. 13.59 billion in
fiscal 2009 to Rs. 13.20 billion in fiscal 2010 primarily due to a change in
the mix of taxable profits with a higher component of exempt income, abolition
of fringe benefit tax, offset, in part, by a negative impact of revaluation of
deferred tax asset due to reduction in surcharge from 10.0% to 7.5% vide
Finance Act, 2010. Profit after tax increased by 7.1% from Rs. 37.58 billion in
fiscal 2009 to Rs. 40.25 billion in fiscal 2010. Net interest income decreased
by 3.0% from Rs. 83.67 billion in fiscal 2009 to Rs. 81.14 billion in fiscal
2010, primarily due to a decrease in average interest-earning assets by 5.1%
from Rs. 3,436.20 billion in fiscal 2009 to Rs. 3,259.66 billion in fiscal
2010, offset, in part, by an increase in the net interest margin from 2.4% in
fiscal 2009 to 2.5% in fiscal 2010. Non-interest income decreased by 1.6% from
Rs. 76.03 billion in fiscal 2009 to Rs. 74.78 billion in fiscal 2010, primarily
due to a decrease in fee income by 13.4% from Rs. 65.24 billion in fiscal 2009
to Rs. 56.50 billion in fiscal 2010, offset, in part by an increase in treasury
income from Rs. 4.43 billion in fiscal 2009 to Rs. 11.81 billion in fiscal
2010. Non-interest expense decreased by 16.8% from Rs. 70.45 billion in fiscal
2009 to Rs. 58.60 billion in fiscal 2010, primarily due to a decrease in direct
marketing agency expenses from Rs. 5.29 billion in fiscal 2009 to Rs. 1.25
billion in fiscal 2010 and a reduction in salary and other operating expenses from
Rs. 65.16 billion in fiscal 2009 to Rs. 57.35 billion in fiscal 2010 on account
of overall cost reduction initiatives undertaken by us. Provisions and
contingencies (excluding provision for tax) increased by 15.2% from Rs. 38.08
billion in fiscal 2009 to Rs. 43.87 billion in fiscal 2010 primarily due to a
higher level of specific provisioning on non-performing retail loans and
restructured corporate loans. The increase in provisions for retail
non-performing assets was primarily on account of seasoning of the secured loan
portfolio, losses on the unsecured loan portfolio, challenges in collections
and the impact of adverse macro-economic environment experienced in fiscal
2009. Total assets decreased by 4.2% from Rs. 3,793.01 billion at year-end
fiscal 2009 to Rs. 3,634.00 billion at yearend fiscal 2010, primarily due to a
decrease in advances by Rs. 371.05 billion, offset, in part, by an increase in
investments by Rs. 178.35 billion.
AUDITED
UNCONSOLIDATED FINANCIAL RESULTS
Rs.
in Millions
|
Particular |
Three
Months Ended |
|
|
Audited |
|
|
30.06.2010 |
|
|
|
|
Interest earned |
58125.400 |
|
Interest /
discount on advances/bills |
37785.300 |
|
Income on
investments |
16585.500 |
|
Interest on
balances with reserve bank of |
980.600 |
|
Others |
2774.000 |
|
Other income |
16805.100 |
|
Total income |
74930.500 |
|
Interest expended
|
38214.900 |
|
Operating
expenses |
18434.900 |
|
Employee cost |
5755.900 |
|
Direct marketing
expenses |
358.100 |
|
Other operating
expenses |
8720.900 |
|
Total expenditure
|
53049.800 |
|
Operating profit
(profit before provision and contingencies) |
21880.700 |
|
Provision other
than tax and contingencies |
7978.200 |
|
Exceptional items
|
-- |
|
Profit /loss from
ordinary activities before tax |
13902.500 |
|
Tax expenses |
3642.700 |
|
Current period
tax |
5151.000 |
|
Deferred tax
adjustment |
(1508.300) |
|
Net profit loss
from ordinary activities |
10259.800 |
|
Extra ordinary
items (net of tax expense) |
-- |
|
Net profit / loss
for the period |
10259.800 |
|
Paid up equity
share capital face value of Rs.10/- |
11155.000 |
|
Reserves
excluding revaluation reserves |
517073.300 |
|
Analytical ratios
|
|
|
Percentage
of shares held by government of |
-- |
|
Capital
adequacy ratio |
20.20% |
|
Earning
per shars (EPS) |
|
|
Basic
EPS before and after extraordinary item, net of expenses (not annualized for
quarter ) |
9.20 |
|
Diluted
EPS before and after extraordinary items, net of tax expenses (not annualized
for quarter) |
9.16 |
|
NPA
ratio |
|
|
Gross
non performing advance (net of write off) |
98290.300 |
|
Net
non performing advances |
34561.800 |
|
% of
gross non performing advances (net of write off) to gross advances |
5.14% |
|
% of net
non performing advances to net advances |
1.87% |
|
Return
on assets (annualized) |
1.15% |
|
Public
shareholding |
|
|
No of
shares |
1115458683 |
|
% of
Shareholding |
100 |
|
Promoters
and Promoter Group Shareholding |
|
|
a)
Pledged/Encumbered |
|
|
-
Number of Shares |
-- |
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
-- |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Bank) |
-- |
|
b)
Non Encumbered |
|
|
-
Number of Shares |
-- |
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
-- |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Bank) |
-- |
Note: the percentage of
gross non performing customer assets to gross customer assets was 4.45% and net
non performing customer assets to net customer assets was 1.62% at June 30,
2010. Customer assets include advances and credit substitutes.
SUMMARIZED
UNCONSOLIDATED BALANCE SHEET
Rs.
in Millions
|
Particular
|
As on 31.06.2010 |
|
|
Audited |
|
CAPITAL AND
LIABILITIES |
|
|
Capital |
11155.000 |
|
Reserves and Surplus |
517073.300 |
|
Deposits |
2009134.600 |
|
Borrowings |
949972.100 |
|
Other Liabilities and Provision |
152636.300 |
|
|
|
|
TOTAL CAPITAL
AND LIABILITIES |
3639971.300 |
|
|
|
|
ASSETS |
|
|
Cash and Balances with Reserve Bank of |
203818.100 |
|
Balances with Banks and Money at Call and Short Notice |
100636.300 |
|
Investment |
1275711.800 |
|
Advances |
1843780.900 |
|
Fixed Assets |
42891.200 |
|
Other Assets |
173133.000 |
|
|
|
|
TOTAL ASSETS |
3639971.300 |
UNCONSOLIDATED
SEGMENTAL RESULTS OF ICICI BANK LIMITED
Rs.
in Millions
|
Particular
|
Three
Months Ended |
|
|
Audited |
|
|
30.06.2010 |
|
|
|
|
Segment
revenue |
|
|
Retail banking |
38277.800 |
|
Wholesale banking |
42148.900 |
|
Treasury |
55188.000 |
|
Other banking |
737.500 |
|
Total
segment revenue |
136352.200 |
|
Less: inter segment revenue |
61421.700 |
|
Income for operations |
74930.500 |
|
Segment
results (i.e. profit before tax) |
|
|
Retail banking |
(2173.300) |
|
Wholesale banking |
9298.400 |
|
Treasury |
6561.500 |
|
Other banking |
215.900 |
|
Total
segment revenue |
13902.500 |
|
Unallocated expenses |
-- |
|
Profit
before tax |
13902.500 |
|
Capital
employed (i.e. segment assets – segment liabilities) |
|
|
Retail banking |
(541239.000) |
|
Wholesale banking |
401817.900 |
|
Treasury |
613257.200 |
|
Other banking |
5473.000 |
|
Unallocated |
48919.200 |
|
Total
|
528228.300 |
Notes
on segmental results:
- The disclosure on segmental reporting has been prepared in accordance with Reserve Bank of India (RBI) circular no DBOD.NO.BP.BC. 81/21.04.018/2006-07 dated April 18, 2007 on guidelines on enhances disclosures on segmental reporting which is effective from the reporting period ended March 31, 2008
- Retail Banking includes exposures which satisfy the four criteria of orientation, product, granularity and low value of individual exposures for retail exposures laid down in Basel Committee on Banking Supervision document International Convergence of Capital Measurement and Capital Standards A Revised Framework.
- Wholesale banking included al advances to trusts, partnership firms companies and statutory bodies, which are not included under retails banking.
- Treasury includes the entire investment portfolio of the bank.
- Other banking includes hire purchase and leasing operations and other items not attributable to any particular business segment.
Notes:
- The financial statement have been prepared in accordance with accounting standard (AS) 25 on interim financial reporting.
- On May 23, 2010 the board of directors of ICICI Bank Limited and the board of directors of The Bank of Rajasthan Limited (Bank of Rajasthan) at their respective meeting approved an all-stock merger of Bank of Rajasthan with ICICI Bank at a share exchange ration of 25 shares of ICICI Bank for 118 shares of Bank of Rajasthan following the convening of extraordinary general meeting held on June 21, 2010 and receipt of approval form shareholders of ICICI Bank and Bank of Rajasthan, both ICICI Bank and Bank of Rajasthan have applied to the Reserve Bank of India for its approval for the proposed merger under section 44A of the Banking Regulation Act, 1949.
- With respect to consolidated financial results, the loss after tax of ICICI Prudential Life Insurance Company (ICICI Life) for the quarter ended June 30, 2010 was Rs.1158.900 millions for the quarter ended June 30, 2010 there was a surplus or Rs.2347.100 million in the non participating policyholders funds. The surplus in the non participating funds would be transferred at the end of the financial year based on the appointed actuary recommendation. If this surplus were transferred in the quarter ended June 30, 2010 the net profit after tax of ICIC Lire for the quarter would have been Rs.1188.200 millions and the banks consolidated net profit after tax for the quarter would have been RS. 12644.300 millions.
- The provision coverage ratio of the Bank at June 30, 2010 computed as per the RBI circular dated December 1, 2009 is 64/8% (March 31, 2010: 59.5%). The bank has been permitted by RBI to achieve the stiputed level of 70% I a phased manner by March 31, 2011.
- During the three months ended June 30, 2010 the bank has allotted 613,369 equity shares of Rs.10 each pursuant to exercise of employee stock options.
- Status of equity investor complaints/ grievances for the three months ended June 30, 2010
|
Opening Balances |
Addition |
Disposable |
Closing Balances |
|
4 |
30 |
31 |
3 |
- Previous period/ year figures have been re-grouped/re-classified where necessary to conform to current period classification.
- The above financial results have been approved by the board of directors at its meeting held on July 31, 2010.
- The above unconsolidated financial results are audited by the statutory auditors S.R. Batliboi and Company chartered accountant.
Contingent
Liabilities:
|
Particular |
As
on 31.03.2010 (Rs.
in Millions) |
As
on 31.03.2009 (Rs.
in Millions) |
|
Claims against the Bank not acknowledged as debts |
33568.263 |
32824.550 |
|
Liability for partly paid investments |
128.126 |
128.126 |
|
Liability on account of outstanding forward exchange
contracts |
1660687.240 |
2583670.864 |
|
Guarantees given on behalf of constituents |
0.000 |
0.000 |
|
a) In |
489280.827 |
453001.349 |
|
b) Outside |
129084.608 |
127880.113 |
|
Acceptances, endorsements and other obligations |
321224.087 |
306782.689 |
|
Currency swaps |
524786.068 |
569648.391 |
|
Interest rate swaps, currency options and interest rate
futures |
4012141.159 |
4146346.015 |
|
Other items for which the Bank is contingently liable |
99940.209 |
126547.930 |
|
|
|
|
|
Total |
7270840.587 |
8346830.027 |
News Release
February 23, 2011
For Immediate Publication
Change in deposit rates, Base Rate and Prime Lending Rate
ICICI Bank has announced an increase in interest rates for various tenors of retail fixed deposits by 0.25% to 0.50% with effect from February 24, 2011.
ICICI Bank has announced an increase of 0.50% in the ICICI Bank Base Rate (“I-Base”) with effect from February 24, 2011. The revised rate will be 8.75% p.a. as against 8.25% p.a. at present. With effect from July 1, 2010, interest rates on new loans and advances, including consumer loans, are determined with reference to I-Base.
ICICI Bank has also announced an increase of 0.50% in its benchmark prime lending rate and in its Floating Reference Rate (FRR) for consumer loans (including home loans) with effect from February 24, 2011. The above benchmark rates are used for determining interest rates on loans and advances sanctioned upto June 30, 2010. The fixed rate customers will not be impacted by the above increase and their contracted rates will remain unchanged. Customers can call the ICICI Bank 24 hour customer care help line or log on to the website (www.icicibank.com) for more details.
About ICICI Bank:
ICICI Bank Limited (NYSE:IBN) is
Except for the historical information
contained herein, statements in this release, which contain words or phrases
such as 'will', 'would', etc., and similar expressions or variations of such
expressions may constitute 'forward-looking statements'. These forward-looking
statements involve a number of risks, uncertainties and other factors that
could cause actual results to differ materially from those suggested by the
forward-looking statements. These risks and uncertainties include, but are not
limited to our ability to obtain statutory and regulatory approvals and to
successfully implement our strategy, future levels of non-performing loans, our
growth and expansion in business, the adequacy of our allowance for credit
losses, technological implementation and changes, the actual growth in demand
for banking products and services, investment income, cash flow projections,
our exposure to market risks as well as other risks detailed in the reports
filed by us with the United States Securities and Exchange Commission. ICICI
Bank undertakes no obligation to update forward-looking statements to reflect
events or circumstances after the date thereof.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.38 |
|
|
1 |
Rs.72.56 |
|
Euro |
1 |
Rs.63.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.