MIRA
INFORM REPORT
|
Report Date : |
14.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
ICICI BANK LIMITED |
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Registered
Office : |
Landmark, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
05.01.1994 |
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Com. Reg. No.: |
04-021012 |
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Capital
Investment / Paid-up Capital : |
Rs.11518.200
millions |
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CIN No.: [Company Identification
No.] |
L65190GJ1994PLC021012 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BRD100221E AHMI00471C |
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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. |
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No. of Employees
: |
33321 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (73) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
Large |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed bank in private sector
having excellent track. It is termed to be the second largest bank in The bank can be considered good for any normal business dealings at
usual trade terms and conditions. |
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 |
LOCATIONS
|
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 ·
·
Rajasthan ·
Uttar Pradesh ·
·
·
Madhya Pradesh ·
·
Jharkhand ·
·
·
Chattisgarh ·
Orissa ·
Andhra Pradesh ·
·
Karnataka ·
Tamilnadu ·
·
Kerala. |
DIRECTORS
|
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. Sridar
Iyenger |
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Designation : |
Director |
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|
Name : |
Mr. Homi R.
Khusrokhan |
|
Designation : |
Director |
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|
Name : |
Mr. Anup K.
Pujari |
|
Designation : |
Director |
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|
Name : |
Mr. M.S.
Ramachandran |
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Designation : |
Director |
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Name : |
Dr. Tushaar Shah |
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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 : |
Ms. Chanda D.
Kochhar |
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Designation : |
Managing Director
and Chief Executive Officer |
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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 |
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Name : |
Mr. Rajiv Sabharwal |
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Designation : |
Executive Director |
KEY EXECUTIVES
|
Senior
Management : |
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|
Name : |
Mr. Vijay Chandok |
|
Designation : |
President |
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|
Name : |
Zarin Daruwala |
|
Designation : |
President |
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|
Name : |
Pravir Vohra |
|
Designation : |
President |
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Senior General
Managers : |
Mr. Sandeep Batra (Group
Compliance Officer and
Company Secretary) K.M. Jayarao Mr. Rakesh Jha Mr. Maninder Juneja Shilpa Kumar Mr. Pramod Rao Mr. Kumar Ashish Mr. Suresh Badami Mr. Sanjay Chougule Mr. Dhamodaran S Mr. Sudhir Dole Mr. Ajay Gupta Mr. Mukeshkumar Jain Mr. Sachin Khandelwal Mr. Sanjeev Mantri Ms. Sangeeta Mhatre Mr. Suvek Nambiar Mr. Girish Nayak Ms. Anita Pai Mr. Saurabh Singh Mr. G. Srinivas Mr. T.K. Srirang Mr. Rahul Vohra |
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BOARD COMMITTEES |
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Audit Committee : |
Mr. Sridar Iyengar, Chairman Mr. Homi Khusrokhan, Alternate
Chairman Mr. M. S. Ramachandran Mr. V. Sridar |
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Board
Governance, Remuneration and Nomination Committee : |
Mr. Sridar Iyengar, Chairman Mr. K.V. Kamath Mr. Homi Khusrokhan Mr. V. Prem Watsa |
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Corporate Social Responsibility Committee : |
Mr. M.S. Ramachandran, Chairman Mr. Anup K. Pujari Mr. Tushaar Shah Ms. Chanda Kochhar |
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Credit Committee : |
Mr. K.V. Kamath, Chairman Mr. Homi Khusrokhan Mr. M.S. Ramachandran Ms. Chanda Kochhar |
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Customer Service Committee : |
Mr. K.V. Kamath, Chairman Mr. M.S. Ramachandran Mr. V. Sridar Ms. Chanda Kochhar |
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Fraud Monitoring Committee : |
Mr. V. Sridar, Chairman Mr. K.V. Kamath Mr. Homi Khusrokhan Mr. Anup K. Pujari Ms. Chanda Kochhar Mr. Rajiv Sabharwal |
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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 Ms. Chanda Kochhar |
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Share Transfer
and Shareholders’/ Investors’ Grievance Committee : |
Mr. Homi Khusrokhan, Chairman Mr. V. Sridar |
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Committee of Executive Directors : |
Ms. Chanda Kochhar, Chairperson Mr. K. Ramkumar Mr. Rajiv Sabharwal |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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(B) Public Shareholding |
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|
88,337,750 |
10.39 |
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|
1,643,257 |
0.19 |
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|
9,583 |
- |
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|
199,419,538 |
23.46 |
|
|
439,833,589 |
51.75 |
|
|
1,478,739 |
0.17 |
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|
1,257,831 |
0.15 |
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|
220,908 |
0.03 |
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|
730,722,456 |
85.98 |
|
|
|
|
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|
47,919,092 |
5.64 |
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|
|
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55,340,136 |
6.51 |
|
|
7,133,470 |
0.84 |
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|
8,804,007 |
1.04 |
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|
750 |
- |
|
|
47,870 |
0.01 |
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|
3,175,504 |
0.37 |
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|
575,769 |
0.07 |
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|
853,428 |
0.10 |
|
|
10,937 |
- |
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|
2,330,052 |
0.27 |
|
|
571,010 |
0.07 |
|
|
1,238,687 |
0.15 |
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|
119,196,705 |
14.02 |
|
Total Public shareholding (B) |
849,919,161 |
100.00 |
|
Total (A)+(B) |
849,919,161 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
302,492,918 |
- |
|
|
302,492,918 |
- |
|
Total (A)+(B)+(C) |
1,152,412,079 |
- |
(1) Indian
Mutual Funds / UTI
FIIs-DRBUSINESS DETAILS
|
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. |
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GENERAL INFORMATION
|
No. of Employees : |
33321 (Approximately) |
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|
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|
Bankers : |
Reserve Bank of |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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|
Name : |
S.R. Batliboi
and Company Chartered Accountants |
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Address : |
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Associates/ joint ventures/ other related entities : |
v ICICI Equity
Fund* v ICICI Eco-net
Internet and Technology Fund* v ICICI Emerging
Sectors Fund* v ICICI Strategic
Investments Fund* v ICICI Kinfra
Limited* v ICICI West
Bengal Infrastructure Development Corporation Limited* (upto December 31,
2010) v Financial
Inclusion Network and Operations Limited (earlier known as Financial Information
Network and Operations Limited) v TCW/ICICI
Investment Partners Limited (earlier known as TCW/ICICI Investment Partners
LLC) v I-Process
Services ( v I-Solutions
Providers ( v NIIT Institute
of Finance v Banking and
Insurance Training Limited v ICICI Venture
Value Fund* v Comm Trade
Services Limited v Loyalty
Solutions and Research Limited* (upto
March 31, 2010) v Transafe
Services Limited* (upto September 30,
2009) v Prize Petroleum
Company Limited v ICICI Foundation
for Inclusive Growth v Firstsource
Solutions Limited (upto December 31, 2009) v I-Ven Biotech
Limited* v Rainbow Fund v ICICI Merchant
Services v
Private Limited and Mewar Aanchalik Gramin Bank**
|
|
*Entities consolidated
as per Accounting Standard (AS) 21 on ‘consolidated financial statements’. ** With respect
to an entity, which has been identified as a related party during the year
ended March 31, 2011, previous year’s comparative figures have not been reported. |
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Domestic Subsidiaries : |
v
ICICI Prudential Life Insurance Company Limited v
ICICI Lombard General Insurance Company Limited v
ICICI Prudential Asset Management Company Limited v
ICICI Prudential Trust Limited v
ICICI Securities Limited v
ICICI Securities Primary Dealership Limited v
ICICI Venture Funds Management Company Limited v
ICICI Home Finance Company Limited v
ICICI Investment Management Company Limited v
ICICI Trusteeship Services Limited v
ICICI Prudential Pension Funds Management Company
Limited* |
|
|
|
|
International Subsidiaries : |
v
ICICI Bank UK PLC v
ICICI Bank v
ICICI Bank Eurasia Limited Liability Company v
ICICI Securities Holdings Inc.** v
ICICI Securities Inc.*** v
ICICI International Limited |
|
*Subsidiary of ICICI Prudential Life Insurance Company Limited **Subsidiary of ICICI Securities Limited ***Subsidiary of ICICI Securities Holdings Inc. |
|
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1275000000 |
Equity Shares |
Rs.10/- each |
Rs.12750.000 millions |
|
15000000 |
Shares |
Rs.100/- each |
Rs.1500.000 millions |
|
350 |
Preference Shares |
Rs.10 millions each |
Rs.3500.000 millions |
|
|
Total |
|
Rs.17750.000 millions
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1114845314 |
Equity Shares |
Rs.10/- each |
Rs.11148.453
millions |
|
|
Add: 34184121 equity
shares of Rs.10 each fully paid up issued to shareholders of erstwhile The
Bank of Rajasthan Limited. |
|
Rs.341.841
millions |
|
|
Less: 200 equity
shares of the Bank, earlier held by erstwhile The Bank of Rajasthan Limited, extinguished
on amalgamation |
|
Rs.(0.002)
million |
|
|
Add: 2743137 equity shares of Rs.10 each fully paid up issued pursuant
to exercise of employee stock options |
|
Rs.27.431
millions |
|
|
|
|
Rs.11517.723 millions |
|
|
|
|
|
|
|
Less: Calls unpaid |
|
Rs.(0.293)
million |
|
|
Add: 111603 equity shares forfeited |
|
Rs.0.770
million |
|
|
Total |
|
Rs.11518.200 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULAR |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
CAPITAL AND
LIABILITIES |
|
|
|
|
Capital |
11518.200 |
11148.892 |
11132.898 |
|
Employees stock options outstanding |
2.929 |
0.000 |
0.000 |
|
Reserves and Surplus |
539388.244 |
505034.767 |
484197.292 |
|
Deposits |
2256021.077 |
2020165.972 |
2183478.249 |
|
Borrowings |
1095542.771 |
942635.686 |
931554.542 |
|
Other Liabilities and Provisions |
159863.467 |
155011.834 |
182646.642 |
|
|
|
|
|
|
TOTAL CAPITAL
AND LIABILITIES |
4062336.688 |
3633997.151 |
3793009.623 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Cash and Balances with Reserve Bank of |
209069.703 |
275142.920 |
175363.342 |
|
Balances with Banks and Money at Call and Short Notice |
131831.128 |
113594.020 |
124302.296 |
|
Investments |
1346859.630 |
1208928.005 |
1030583.080 |
|
Advances |
2163659.014 |
1812055.971 |
2183108.492 |
|
Fixed Assets |
47442.551 |
32126.899 |
38016.209 |
|
Other Assets |
163474.662 |
192149.336 |
241636.204 |
|
|
|
|
|
|
TOTAL ASSETS |
4062336.688 |
3633997.151 |
3793009.623 |
PROFIT & LOSS
ACCOUNT
|
PARTICULAR |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
INCOME |
|
|
|
|
Interest Earned |
259740.528 |
257069.331 |
310925.484 |
|
Other Income |
66478.925 |
74776.500 |
76037.271 |
|
TOTAL INCOME |
326219.453 |
331845.831 |
386962.755 |
|
|
|
|
|
|
EXPENDITURE |
|
|
|
|
Interest Expended |
169571.515 |
175925.704 |
227259.343 |
|
Operating Expenses |
66172.492 |
58598.327 |
70451.137 |
|
Provision and contingencies |
38961.684 |
57071.971 |
51670.943 |
|
TOTAL
EXPENDITURE |
274705.691 |
291596.002 |
349381.423 |
|
|
|
|
|
|
PROFIT AND LOSS |
|
|
|
|
Net Profit for the Year |
51513.762 |
40249.829 |
37581.332 |
|
Profit Brought Forward |
34643.807 |
28096.510 |
24363.159 |
|
Total Profit /
(Loss) |
86157.569 |
68346.339 |
61944.491 |
|
|
|
|
|
|
APPROPRIATION /
TRANSFERS |
|
|
|
|
Transfer to Statutory Reserve |
12880.000 |
10070.000 |
9400.000 |
|
Transfer to Reserve Fund |
0.360 |
2.170 |
4.221 |
|
Transfer to Capital Reserve |
832.500 |
4440.000 |
8180.000 |
|
Transfer to Investment Reserve Account |
(1160.000) |
1160.000 |
0.000 |
|
Transfer to General Reserve |
2.584 |
10.369 |
0.000 |
|
Transfer to Special Reserve |
5250.000 |
3000.000 |
2500.000 |
|
Dividend (including Corporate Dividend Tax for the Previous Year Paid
During the Year) |
21.658 |
0.929 |
5.811 |
|
Proposed Equity Share Dividend |
16125.811 |
13378.604 |
12245.771 |
|
Proposed Preference Share Dividend |
0.035 |
0.035 |
0.035 |
|
Corporate Dividend Tax |
2022.784 |
1640.425 |
1512.143 |
|
Balance Carried Over to Balance Sheet |
50181.837 |
34643.807 |
28096.510 |
|
|
|
|
|
|
TOTAL |
86157.569 |
68346.339 |
61944.491 |
|
|
|
|
|
|
Earnings per share |
|
|
|
|
Basic (Rs.) |
45.27 |
36.14 |
33.76 |
|
Diluted (Rs.) |
45.06 |
35.99 |
33.70 |
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Interest Earned |
|
76185.200 |
81576.200 |
|
Income On Investments |
|
22510.300 |
23449.800 |
|
Interest On Balances With RBI Other Inter Bank Funds |
|
1138.300 |
1152.700 |
|
Interest / Discount On Advances / Bills |
|
49351.300 |
53807.400 |
|
Others |
|
3185.300 |
3166.300 |
|
Other Income |
|
16428.900 |
17395.500 |
|
Total Income |
|
92614.100 |
98971.700 |
|
Interest Expended |
|
52076.000 |
56511.800 |
|
Operating Expenses |
|
18197.800 |
18922.400 |
|
Total Expenditure |
|
18197.800 |
18922.400 |
|
Operating Profit Before Provisions and Contingencies |
|
22340.300 |
23537.500 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
Provisions and contingencies |
|
4538.600 |
3187.900 |
|
Profit Before Tax |
|
17801.700 |
20349.600 |
|
Tax |
|
4479.700 |
5317.700 |
|
Profit After Tax |
|
13322.000 |
15031.900 |
|
+/- Extraordinary Items |
|
0.000 |
0.000 |
|
+/- Prior period items |
|
0.000 |
0.000 |
|
Net Profit |
|
13322.000 |
15031.900 |
LOCAL AGENCY FURTHER INFORMATION
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 Subject 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.
OVERVIEW
Subject,
incorporated in
APPROPRIATIONS
The profit after
tax of the Bank for fiscal 2011 is Rs.51.51 billion after provisions and
contingencies (excluding provision for taxes) of Rs.22.87 billion and all
expenses. The disposable profit is Rs.86.15 billion, taking into account the
balance of Rs.34.64 billion brought forward from the previous year. The
Directors have recommended a dividend at the rate of Rs.14 per equity share of
face value Rs.10 for the year.
Internet Banking
Their
comprehensive Internet Banking service is designed to give their customers a
convenient banking experience from the comfort of their homes or offices.
Their Internet
Banking offering has evolved over time not only to enable basic online
transactions but also to provide cutting edge features.
Innovative
features, such as applying for a new account, opening a fixed deposit and the
Money Manager, help their customers to manage almost all their financial needs online.
Further, their Internet Banking service goes beyond fulfilling the routine
banking needs of customers by enabling them to buy mutual funds, insurance,
forex and gold online.
MERGER OF THE BANK
OF RAJASTHAN LIMITED WITH ICICI BANK
The Bank of Rajasthan
Limited (Bank of Rajasthan), a banking company incorporated within the meaning
of Companies Act, 1956 and licensed by Reserve Bank of India (RBI) under the
Banking Regulation Act, 1949 was amalgamated with Subject with effect from
close of business on August 12, 2010 in terms of the Scheme of Amalgamation
(the Scheme) approved by RBI vide its order DBOD No. PSBD
2599/16.01.056/2010-11 dated August 12, 2010 under sub section (4) of section
44A of the Banking Regulation Act, 1949. The consideration for the amalgamation
was 25 equity shares of ICICI Bank of the face value of Rs.10 each fully
paid-up for every 118 equity shares of Rs.10 each of Bank of Rajasthan.
Accordingly, ICICI Bank allotted 31,323,951 equity shares to the shareholders
of Bank of Rajasthan on August 26, 2010 and 2,860,170 equity shares, which were
earlier kept in abeyance pending civil appeal, on November 25, 2010.
DIRECTORS
The RBI vide its
letter dated June 24, 2010 approved the appointment of Rajiv Sabharwal as an
Executive Director of the Bank. The Members approved his appointment at the
Sixteenth Annual General Meeting (AGM) held on June 28, 2010.
Narendra Murkumbi
retired by rotation on June 28, 2010 at the last AGM and did not seek
re-appointment. The valuable guidance and contribution made by Narendra
Murkumbi was recognised by the Board.
Pursuant to the
provisions of the Banking Regulation Act, 1949, M. K. Sharma retired from the
Board effective January 31, 2011 on completion of eight years as a
non-executive Director of the Bank. The Board placed on record its deep
appreciation and gratitude for his guidance and contribution to the Bank.
In terms of the
provisions of the Companies Act, 1956 and the Articles of Association of the
Bank, V. Prem Watsa, M. S. Ramachandran and K. Ramkumar would retire by
rotation at the forthcoming AGM and are eligible for re-appointment. M. S.
Ramachandran and K. Ramkumar have offered themselves for re-appointment. V.
Prem Watsa has expressed his desire not to seek re-appointment as a Director as
his maximum permissible tenure of eight years as a non-executive Director of
the Bank would end on January 28, 2012. A Resolution is proposed to the
Members in the
Notice of the current AGM to this effect and also not to fill up the vacancy
caused by the retirement of V. Prem Watsa at this meeting or any adjourned
meeting thereof.
Mobile Banking
Their innovations
in Mobile Banking have transformed the mobile phone into a personal banking
assistant for their customers. Be it simple SMS alerts, service requests using
Instant Messaging or
the
Today, customers
can use their mobile phones not only to check account balances and transfer
funds but also to apply for a loan. Their innovative Mobile Banking service
takes convenience to a different level by enabling customers to buy flight and
movie tickets and also shop for apparels, books and flowers.
ATM
The ICICI Bank ATM
is much more than just a money-dispensing machine. Their state-of-the-art
technology has led to redefining convenience for the customer. With newly
introduced innovative features, their ATM is now equipped to take care of
banking needs that go beyond basic cash withdrawal. Today their ATMs offer
services such as opening fixed deposits, payment of credit card and utility
bills, payment of insurance premium, mobile re-charges and ‘Ultra Fast Cash’
which facilitates withdrawal of Rs.5000 in a single click.
They have used technology
to transform their vast network of ATMs to provide greater convenience and
efficiency to their customers, thereby almost making them a network of mini
branches.
Phone Banking
At ICICI Bank they
have created one of
To take
convenience to a new level, they have harnessed technology to offer evolved
services, which not only enable their customers to register banking queries
efficiently but also carry out transactions. Customers can now pay their
utility and credit card bills through their Interactive Voice Response system.
What’s more, their Phone Banking service is available in various regional
languages, enables instantaneous password generation for Internet Banking and
even has an ‘auto-dialer’ facility through which their customers can request
for a call back.
BUSINESS OVERVIEW
ECONOMIC OUTLOOK
The long-term
fundamentals of the Indian economy continue to be strong. These include favourable
demographics, rising incomes, growing consuming class and a large investment
pipeline. These growth drivers are expected to be sustained over the
medium-to-long term. The growth of the economy is being driven primarily by
domestic investment and consumption, with limited dependence on exports or the
demand situation in other economies. In addition, the growing economic activity
in rural
At the same time,
there are some concerns, particularly with regard to inflation. Inflationary
pressures emerging from commodity and food prices have shown signs of becoming
more generalised, leading to the containing of inflation becoming the key
priority of policy makers. In addition, the global economic environment
continues to remain uncertain with slow recovery and fiscal concerns in
developed markets.
They believe that
while these challenges may have an impact in the short term and cause periodic
volatility, the strong underlying fundamentals of the Indian economy would
sustain high rates of growth over the medium to long term.
BUSINESS REVIEW
During fiscal
2011, the Bank focused on 5Cs strategy – Credit growth, CASA mobilisation, Cost
optimization, Credit quality improvement and Customer centricity. They believe
that they have achieved substantial success on all the parameters of this
strategy and are well placed to leverage on the growth opportunities in the
economy.
Retail Banking
After significant
moderation in previous years, retail credit growth in the system picked up pace
in fiscal 2011. As per data published by RBI for the period up to March 25,
2011, year-on-year retail credit growth was about 17%.
They continue to
believe that retail credit in
Their branches are
the key points of customer acquisition and service. Accordingly, their
organisation structure has been shaped to provide greater empowerment to their
branches. The branch network is expected to serve as an integrated channel for
deposit mobilisation, selected retail asset origination and distribution of
third party products as well as the focal point for customer service. The
outbound sales teams have been strengthened and brought under branch
supervision. They are supported by the operations and phone banking teams to
deliver high quality service, customer retention and up-selling; and by a
strategic product and service design team to design product and service
strategies for different customer segments. They have deepened their engagement
and relationship with customers and created more opportunities for
cross-selling other products by introducing dedicated privilege banking areas,
which are manned by specially trained privilege bankers, and exclusive wealth
branches for their high net worth customers.
The Bank’s focus
during the year was on delivering superior customer service in line with its
articulated Khayaal Aapka proposition.
During the year,
they acquired The Bank of Rajasthan which substantially enhanced their branch
network and strengthened their presence in northern and western
Including these,
their branch network has increased from 1,707 branches at March 31, 2010 to
2,529 branches at March 31, 2011. They also increased their ATM network from
5,219 ATMs at March 31, 2010 to 6,055 ATMs at March 31, 2011.
During fiscal
2011, they continued their focus on increasing the proportion of low-cost
retail deposits in their funding base. Their current and savings account (CASA)
deposits as a percentage of total deposits increased from 41.7% at March 31,
2010 to 45.1% at March 31, 2011.
During the year,
their retail disbursements increased as they focused on opportunities in
residential mortgages, vehicle finance and construction equipment finance. The
realignment of their retail sales and service architecture helped they increase
their reach while simultaneously bringing focus towards customer service. They
sourced an increasing proportion of their mortgage business through their
branch network. In addition to mortgages, they also saw traction in auto loans,
commercial vehicle financing and construction equipment business in fiscal
2011.
They also
continued to focus on cross-selling new products and products of their life and
general insurance subsidiaries to their existing customers. Cross-sell allows
they to deepen their relationship with their existing customers and 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.
SMALL ENTERPRISES
Medium and small
enterprises are important engines of growth and reflect
During fiscal
2011, they strengthened the sales and relationship coverage by increasing their
presence with greater empowerment at zonal levels. This has allowed they to
deepen their customer relationships and supplement the customer acquisition by
leveraging their branch network along with their commercial banking franchise.
The Bank also contributes significantly to the SME eco-system through multiple
initiatives such SME CEOs Knowledge Series, Emerging India Awards, SME Expos
and the SME Toolkit - an online business and advisory resource.
They have a long
tradition of partnering entrepreneurs early in their growth phase, building
lasting and mutually beneficial relationships that deliver recurring value.
They will continue to further strengthen their proposition and penetration in
this segment.
CORPORATE BANKING
Their corporate
banking strategy is based on providing comprehensive and customised financial
solutions to their corporate customers. They offer a comprehensive suite of
corporate banking products including rupee and foreign currency debt, working
capital credit, structured financing, loan 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 spread across structured finance,
project finance, loan syndication and markets. The Structured Finance Group is
responsible for working with the relationship team in
They have a
Commercial Banking Group working closely with the Corporate Banking Group for
growing this business through identified branches. Their strategy for growth in
commercial banking, i.e. of meeting the regular banking requirements of
companies for transactions and trade, is based on leveraging their strong
client relationships and focusing on enhancing client servicing capability at
the operational level.
They have enhanced
their client servicing capability by the effective use of “Mega Branches” spread
across all major commercial centres across the country catering to specialised
commercial banking needs of clients. These branches have highly cohesive and
dedicated customer focused transaction teams, led by senior branch heads, to
service customers and provide a better transactional experience to the client.
An efficient central operations team complements the service delivery
capability.
The relationship
team also works with their Markets Group to assist customers in devising and
executing risk management strategies to address foreign currency, interest rate
and liquidity risks. Their loan syndication franchise enables they to
structure, underwrite and syndicate rupee and foreign currency debt with Indian
and offshore investors. They have built robust sector specific syndication
skills across project finance, M and A financing and structured finance to
provide optimal financing solutions.
The continuing
expansion of Indian companies provides significant opportunities for their
corporate banking business. Their expertise lies in structuring client specific
solutions coupled with seamless delivery for an enriching customer experience.
They will continue to focus on increasing the granularity and stability of
their revenue streams by executing their transaction banking and trade services
strategy, while keeping a close watch on credit quality and further deepening
their client relationships.
PROJECT FINANCE
With strong
momentum in the Indian economy, there has been a significant increase in
investment activity with capacity additions across sectors such as
infrastructure, power, oil and gas, urban development and manufacturing. They
expect a significant increase in infrastructure financing requirements going
forward. The power sector will witness the execution of large projects given
the energy needs of the country and the government’s energy expansion
programmes. Besides requirements arising out of capacity additions, significant
investments are also projected in inter-regional and regional transmission
corridors for strengthening the national grid. Further, they also expect
substantial development in the renewable energy segment. With the scale-up in
gas production there is a need to connect
Their long
tradition of project finance and their ability to offer structured and
customised solutions position they uniquely to capitalise on these
opportunities and cater to the financing requirements in the infrastructure sector.
It will be their constant endeavour to add value to projects through financial
structuring to ensure bankability. These services are backed by innovative
structuring capabilities, sectoral expertise and sound due diligence.
INTERNATIONAL
BANKING
Their
international strategy is focused on meeting the foreign currency needs of
their Indian corporate clients and partnering them in their global expansion,
taking select trade finance exposures linked to imports to
In fiscal 2011,
global economic activity picked up at differential rates with emerging markets
experiencing strong growth and developed markets continuing to face a phase of
slow recovery. However, as the overall global economic environment improved,
the pace of recovery in international trade and capital flows strengthened
significantly. Exports from
They also focused
on improving the funding profile in their international operations. They became
the first Indian bank to issue 10-year senior bonds in the international
markets. They also focused on establishing and growing relationships with
global multinationals that are increasingly entering and expanding in Indian
markets.
They also
strengthened their market position and share in remittances during fiscal 2011
and continued to develop products and service offerings to meet the
requirements of the Non Resident Indian (NRI) community. The emphasis was on
improving account operation via remote channels in order to cater to the
customers’ needs when overseas. They launched I-Express, an instant
cross-border money transfer option for NRIs through their select partners in
the
INCLUSIVE AND
RURAL BANKING
In accordance with
the ICICI Group’s vision of combining a sustainable business model with a
social and human development agenda, the Bank has undertaken several
initiatives to meet the financial services needs of the rural market. These
include offering credit through their branches and dedicated field teams and
financial inclusion through business correspondents. They continued to focus on
improving their product and service offerings to meet the requirements of all
participants in the rural market including farmers, traders, commission agents,
small processors and other medium agri-corporates.
In March 2010,
their Board approved a three-year financial inclusion plan that envisaged the
opening of no-frill savings accounts and expanding their rural reach over the
next three years along with the provision of credit to select individuals in
the target segment through various product lines comprising micro-credit, kisan
credit card, farm equipment loan and loan against jewellery. In fiscal 2011,
they focused on building capacity to implement their financial inclusion plan
and their progress against the plan targets during the year has been
satisfactory. They have also focused on opening accounts for routing benefit
payments under various government schemes and have received the mandate for
opening accounts of individuals under these schemes in certain states.
The Bank has also
identified 23 Business Correspondents having a network of 208 customer service
points, to service these customers. They tied up with Vodafone and Aircel for
extending basic financial services through the mobile platform. The plan is to
leverage the penetration and the distribution infrastructure of the mobile
network operators. They have also built lending capability in over 1,000 of
their branches for products targeted towards individual customers in the
agri-value chain. They also increased their product offerings in rural
Going forward,
they will continue to focus on leveraging their branch network and the network of
their Business Correspondent partners to enhance financial inclusion by
offering banking facilities to the unbanked, and growing their relationships
with these customers over time. They will seek to play a significant role in
the channeling of payments under government schemes to the beneficiaries
through their bank accounts with us. They will also leverage the emerging
initiatives and infrastructure, such as the Unique Identity initiative of the
Government, that support financial inclusion in the country. They will seek to
scale up their offerings of credit products in rural areas and across the
agricultural value chain by leveraging their extensive branch network and
developing appropriate product propositions for these segments.
KEY SUBSIDIARIES
ICICI Prudential Life Insurance Company (ICICI Life):
ICICI Life
maintained its market leadership in the private sector with an overall market
share of 7.3% based on retail new business weighted received premium in fiscal
2011. Effective September 1, 2010, the Insurance Regulatory and Development
Authority specified changes such as cap on surrender charges, charges
applicable from the sixth year of policy, an increase in minimum premium paying
term and introduction of minimum guaranteed returns on pension products. ICICI
Life’s total premium increased by 8.2% to Rs.178.81 billion in fiscal 2011.
ICICI Life’s new business annualised premium equivalent was Rs.39.75 billion in
fiscal 2011. ICICI Life achieved a profit after tax of Rs.8.08 billion in
fiscal 2011. The expense ratio, defined as the ratio of expenses (excluding
commission and front line sales cost) to total premium, has decreased from
19.5% in fiscal 2010 to 17.3% in fiscal 2011. ICICI Life’s unaudited New
Business Profit in fiscal 2011 was Rs.7.13 billion.
ICICI Lombard General Insurance Company (ICICI General)
ICICI General
maintained its leadership in the private sector with an overall market share of
9.6% in fiscal 2011. ICICI General’s gross written premium grew by 28.5% from
Rs.34.31 billion in fiscal 2010 to Rs. 44.08 billion during fiscal 2011. As per
Insurance Regulatory and Development Authority’s order dated March 12, 2011,
all general insurance companies were required to provide for losses on the
third party motor pool, a multilateral reinsurance arrangement covering third
party risk of commercial vehicles, at a provisional rate of 153% over fiscal
2008 to fiscal 2011 compared to the earlier loss rate of 122%-127%. The impact
of the same on ICICI General was Rs.2.72 billion. As a result of the negative
impact on this account, ICICI General recorded a loss of Rs.0.80 billion in
fiscal 2011.
ICICI Prudential Asset Management Company (ICICI AMC)
ICICI AMC is the
third largest asset management company in
ICICI Venture Funds Management Company Limited (ICICI Venture)
ICICI Venture
maintained its leadership position as a specialist alternative assets manager
based in
ICICI Securities Limited and ICICI Securities Primary Dealership
Limited
ICICI Securities
achieved a profit after tax of Rs.1.13 billion in fiscal 2011. ICICI Securities
Primary Dealership achieved a profit after tax of Rs.0.53 billion in fiscal
2011.
ICICI Bank UK PLC (ICICI Bank
ICICI Bank
ICICI Bank
ICICI Bank
Background
For over five
decades, the ICICI Group has partnered
MANAGEMENT’S DISCUSSION AND ANALYSIS
BUSINESS
ENVIRONMENT
The Bank’s
financial condition, loan portfolio and results of operations have been and are
in the future expected to be influenced by economic and financial conditions in
During fiscal
2011, the recovery in economic activity witnessed in fiscal 2010 was sustained.
Gross Domestic Product (GDP) increased by 8.6% during the first nine months of
fiscal 2011, compared to a growth of 7.4% in the corresponding period of fiscal
2010. In addition, growth was fairly broad-based across the agriculture,
industry and services sectors. Growth in the agriculture sector recovered to
5.7% during the first nine months of fiscal 2011 compared to 0.2% in the corresponding
period of fiscal 2010. The services sector continued to grow at over 9.0%
during the year. Industrial growth remained strong during the first half of
fiscal 2011 with the Index of Industrial Production (IIP) recording an average
growth of over 10.0%. However, there was some moderation during the subsequent
months, partly due to an adverse base effect. During April 2010 to February
2011, total exports increased by 31.4% on a year-on-year basis. In view of the
continued momentum in economic activity, the Central Statistical Organisation
has estimated GDP to grow by 8.6% in fiscal 2011 compared to a growth of 8.0%
in fiscal 2010.
Inflationary
pressures continued to persist through fiscal 2011, with an increase in the
latter part of the fiscal year due to higher than anticipated rise in food and
oil prices. Inflation, measured by the Wholesale Price Index (WPI), after
declining from a high of 11.0% in April 2010 to about 8.1% in November 2010
continued to remain at elevated levels of about 8.0% for the remaining part of
the fiscal year. Inflationary pressures, though largely emanating from food and
fuel prices, became broad based as manufactured products inflation showed an
increase from February 2011. In view of the above, Reserve Bank of India (RBI)
continued its policy tightening and liquidity management stance. During fiscal
2011, the cash reserve ratio (CRR) was increased by 25 basis points from 5.75%
to 6.00%, the repo rate by 175 basis points from 5.00% to 6.75%, and the
reverse repo rate by 225 basis points from 3.50% to 5.75%. In its annual policy
statement for fiscal 2012, RBI further increased the repo rate by 50 basis
points to 7.25% and set the reverse repo rate at 1.0% below the repo rate. In
addition, during certain periods, liquidity was also impacted by events such as
the auction of telecom spectrum and lower than anticipated government spending.
Liquidity in the system continued to remain in deficit for a large part of
fiscal 2011, particularly in the second half of the fiscal year. Banks remained
net borrowers from RBI under the Liquidity Adjustment Facility (LAF) with
average borrowings of about Rs.640.00 billion on a daily basis between June 1,
2010 and March 31, 2011. The yields on 10 year government securities increased
by about 17 basis points to 7.99% at March 31, 2011 as compared to 7.82% at
March 31, 2010. During the latter part of fiscal 2011, RBI initiated several
measures to ease systemic liquidity including decreasing the Statutory
Liquidity Ratio (SLR) by 100 basis points from 25.0% to 24.0% in December 2010,
providing additional liquidity support under the LAF window, operation of a
second LAF on a daily basis, and open market operations for purchase of
government securities.
In response to
tight systemic liquidity and the rising interest rate environment, scheduled
commercial banks increased their deposit rates for various maturities by 75-250
basis points between April 2010 and January 2011. The impact of rising cost of
funds for banks was also reflected in lending rates with banks increasing their
base rates by 95-165 basis points during the year. Banking system credit
growth, after remaining subdued during fiscal 2010 recovered in fiscal 2011,
following the improvement in economic activity. Non-food credit growth was 21.2%
at March 25, 2011 on a year-on-year basis, compared to 17.1% at March 26, 2010.
Based on sector-wise data, growth in non-food credit on a year-on-year basis
till February 25, 2011 was 22.8%, which was largely driven by growth in credit
to industry at 26.5% and to the services sector at 24.2%. Within industry,
loans to the infrastructure sector increased by 39.7% led by power and
telecommunications. During the year, there was also some recovery in growth in
the personal loans segment with a year-on-year increase of 16.2% at February
25, 2011. However, deposit growth lagged credit growth in the system with total
deposits increasing by 15.8% on a year-on-year basis at March 25, 2011 compared
to 17.2% at March 26, 2010. The slower growth in deposits was largely due to
the decline in demand deposits by 1% on a yearon- year basis at March 25, 2011
as compared to a growth of 23.4% at March 26, 2010.
Equity markets,
while appreciating during fiscal 2011, continued to remain volatile as various
events such as increased inflationary concerns, the European sovereign debt
crisis and political events in the Middle East and
Tight liquidity
and the rising interest rate environment combined with the impact of regulatory
changes, led to lower mobilisation under savings and investment products during
fiscal 2011. First year retail premium underwritten in the life insurance
sector decreased by 8.5% (on weighted received premium basis) to Rs.503.68
billion in fiscal 2011 from Rs.550.24 billion in fiscal 2010. The average
assets under management of mutual funds decreased by 6.3% from Rs.7,475.25
billion in March 2010 to Rs.7,005.38 billion in March 2011. However, gross
premium of the non-life insurance sector (excluding specialised insurance
institutions) grew by 21.7% to Rs.425.69 billion in fiscal 2011.
There were a
number of key regulatory developments in the Indian financial sector during
fiscal 2011:
•• In December
2010, RBI imposed a regulatory ceiling on the loan-to-value ratio in respect of
housing loans at 80%. However, small value loans of less than Rs.2.0 million
were permitted to have a loan to value ratio not exceeding 90%. Further, the
risk weight for residential loans of Rs.7.5 million and above was set at 125%
irrespective of the loan to value ratio, as against the earlier mandated 100%
for a loan to value ratio of above 75%. With respect to loans outstanding under
special housing loan products with lower interest rates in initial years, the
standard asset provisioning was increased from 0.4% to 2.0%.
•• In February
2011, RBI issued guidelines declassifying loans sanctioned to non-banking
finance companies (NBFCs) for on-lending to individuals and entities against
gold jewellery as direct agriculture lending under priority sector
requirements. Similarly, investments made by banks in securitised assets
originated by NBFCs, where the underlying assets were loans against gold
jewellery and purchase/assignment of gold loan portfolio from NBFCs were also
made ineligible for classification under agriculture sector lending.
•• RBI advised
banks to henceforth not issue Tier-1 and Tier-2 capital instruments with
step-up options so that these instruments remain eligible for inclusion in the
new definition of regulatory capital under the Basel III framework.
•• In the Union
Budget for fiscal 2012, the government enhanced priority sector eligibility
ceiling for housing loans for dwelling units from Rs.2.0 million to Rs.2.5
million.
•• In May 2010,
RBI permitted infrastructure NBFCs to avail of external commercial borrowings
for on-lending to the infrastructure sector. Further, in July 2010, guidelines
were issued to permit take-out financing arrangement through the external
commercial borrowing route for refinancing of rupee loans availed for financing
infrastructure projects particularly in the areas of seaports, airports, roads
and power. In the Union Budget for fiscal 2012, the limit for investment by
Foreign Institutional Investors (FIIs) in corporate bonds with residual
maturity of over five years issued by companies in infrastructure sector, was
raised by US$ 20 billion, taking the limit to US$ 25 billion.
Further, it was
also proposed to create special vehicles in the form of notified infrastructure
debt funds with lower withholding tax on their interest payments and tax
exemptions on their incomes.
•• In August 2010,
the RBI issued a discussion paper on entry of new banks in the private sector.
In January 2011, RBI also released a discussion paper on the presence of
foreign banks in
•• In June 2010,
the Insurance Regulatory and Development Authority (IRDA) introduced revisions to
the regulations governing unit linked insurance products such as increase in
the lock-in period from three years to five years, increase in minimum
mortality cover, cap on surrender and other charges and minimum guaranteed
return on pension annuity products.
•• In March 2011,
IRDA conducted an audit of the third party motor insurance pool and concluded
that the pool reserves needed to be enhanced significantly. Accordingly, IRDA
stipulated that all general insurance companies should increase these reserves
based on a provisional loss ratio of 153% for the pool for all years commencing
from the year ended March 31, 2008, with the final loss ratio to be determined
through a further review in fiscal 2012.
Introduction of
Base Rate system
Historically, interest
rates on loans extended by banks were linked to the prime lending rate (PLR) of
each bank. With effect from July 1, 2010, RBI implemented a new base rate
mechanism, requiring each bank to set and publicly disclose its minimum rate or
“Base Rate” for all new loans and advances and renewal of existing facilities,
subject to certain limited exceptions. While existing loans based on the
Benchmark Prime Lending Rate (BPLR) system would continue to be linked to BPLR
till their maturity, the existing borrowers have an option to migrate to the
Base Rate system before the expiry of existing contracts on mutually agreed
terms. Except certain categories of loans as specified by RBI, banks are not
allowed to lend below the Base Rate. Under the regulation, banks must review
their base rates at least once every quarter.
The Asset
Liability Management Committee (ALCO) of the Bank at its meeting on June 30,
2010, set the Base Rate of ICICI Bank, called “I-Base”, at 7.50% p.a. with
effect from July 1, 2010. I-Base was increased by 175 basis points, in four
phases, the last such increase being to 9.25% p.a. with effect from May 7,
2011.
Change in
Methodology for Computing Interest Payable on Savings Deposits
RBI had prescribed
an interest rate of 3.50% on savings deposits and upto March 31, 2010 banks
were required to pay this interest on the minimum outstanding balance in a
savings deposit account between the tenth day and the end of the month.
Effective April 1, 2010, RBI changed the methodology of computation of the interest
payable and banks were required to pay interest on the daily average balance
maintained in a savings deposit account. The change in methodology resulted in
increase in cost of savings account deposits for banks. RBI has increased the
interest rate on savings account deposits to 4.00% with effect from May 3,
2011.
Amalgamation of
The Bank of Rajasthan
On May 23, 2010,
the Board of Directors of ICICI Bank and the Board of Directors of The Bank of
Rajasthan Limited (Bank of Rajasthan), an old private sector bank, at their
respective meetings approved an all-stock amalgamation of Bank of Rajasthan
with ICICI Bank at a share exchange ratio of 25 shares of ICICI Bank for 118
shares of Bank of Rajasthan. The shareholders of ICICI Bank and Bank of Rajasthan
approved the scheme of amalgamation at their respective extra-ordinary general
meetings. RBI approved the scheme of amalgamation with effect from close of
business on August 12, 2010.
They have issued
31.3 million shares in August 2010 and 2.9 million shares in November 2010 to
shareholders of Bank of Rajasthan. The total assets of Bank of Rajasthan
represented 4.0% of total assets of ICICI Bank at August 12, 2010. At August
12, 2010, Bank of Rajasthan had total assets of Rs.155.96 billion, deposits of Rs.134.83
billion, loans of Rs.65.28 billion and investments of Rs.70.96 billion. It
incurred a loss of Rs.1.02 billion in fiscal 2010. The results for fiscal 2011
include results of Bank of Rajasthan for the period from August 13, 2010 to
March 31, 2011. The assets and liabilities of Bank of Rajasthan have been
accounted at the values at which they were appearing in the books of Bank of
Rajasthan at August 12, 2010 and provisions were made for the difference
between the book values appearing in the books of Bank of Rajasthan and the
fair value as determined by ICICI Bank.
The amalgamation
was part of their strategy to expand their branch network with a view to
growing their deposit base. They believe that the combination of Bank of
Rajasthan’s branch franchise with their strong capital base would enhance the
ability of the combined entity to capitalise on the growth opportunities in the
Indian economy.
STANDALONE
FINANCIALS AS PER INDIAN GAAP
Summary
During fiscal
2011, they focused on leveraging their rebalanced funding mix and strong
capital position to grow their loan portfolio, while substantially reducing
their provisions for loan losses to improve their profitability.
Their profit after
tax increased by 28.0% from Rs.40.25 billion in fiscal 2010 to Rs.51.51 billion
in fiscal 2011. The increase in profit after tax was mainly due to a 47.9%
decrease in provisions and contingencies (excluding provisions for tax) from
Rs.43.87 billion in fiscal 2010 to Rs.22.87 billion in the fiscal 2011. The
decrease in provisions and contingencies (excluding provisions for tax) was
primarily due to a reduction in provisions for retail non-performing loans, as
accretion to retail non-performing loans declined sharply in fiscal 2011. Net
interest income increased by 11.1% from Rs.81.14 billion in fiscal 2010 to
Rs.90.17 billion in fiscal 2011.
The decrease in
provisions and contingencies and increase in net interest income was partly
offset by an 11.1% decrease in non-interest income from Rs.74.78 billion in fiscal
2010 to Rs.66.48 billion in fiscal 2011. The decrease in non-interest income
was primarily due to a decrease in income from treasury-related activities by
Rs.13.96 billion from a gain of Rs.11.81 billion in fiscal 2010 to a loss of
Rs.2.15 billion in fiscal 2011. The higher income from treasury-related
activities in fiscal 2010 included reversal of provision against credit
derivatives due to softening of credit spreads and higher realised profit on
government securities and other fixed income positions. Fee income increased by
13.6% from Rs.56.50 billion in fiscal 2010 to Rs.64.19 billion in fiscal 2011.
In fiscal 2011,
non-interest expenses increased by 12.9% from Rs.58.60 billion in fiscal 2010
to Rs.66.17 billion in fiscal 2011 primarily due to an increase in employee
expenses partly offset by a decrease in other administrative expenses.
Total assets
increased by 11.8% from Rs.3,634.00 billion at March 31, 2010 to Rs.4,062.34
billion at March 31, 2011. Total deposits increased by 11.7% from Rs.2,020.17
billion at March 31, 2010 to Rs.2,256.02 billion at March 31, 2011. Current and
savings account (CASA) deposits increased by 20.7% from Rs.842.16 billion at
March 31, 2010 to Rs.1,016.47 billion at March 31, 2011 while term deposits
increased marginally from Rs.1,178.01 billion at March 31, 2010 to Rs.1,239.55
billion at March 31, 2011. The ratio of CASA deposits to total deposits
increased from 41.7% at March 31, 2010 to 45.1% at March 31, 2011. Total
advances increased by 19.4% from Rs.1,812.06 billion at March 31, 2010 to
Rs.2,163.66 billion at March 31, 2011 primarily due to an increase in domestic
corporate loans, overseas corporate loans and loans taken over from Bank of
Rajasthan. Net non-performing assets decreased by 37.0% from Rs.39.01 billion
at March 31, 2010 to Rs.24.58 billion at March 31, 2011 and the net
non-performing asset ratio decreased from 1.9% at March 31, 2010 to 0.9% at
March 31, 2011.
They continued to
expand their branch network in
The total capital
adequacy ratio of ICICI Bank on a standalone basis at March 31, 2011 in
accordance with the RBI guidelines on Basel II was 19.5% with a tier I capital
adequacy ratio of 13.2% compared to a total capital adequacy of 19.4% and tier
I capital adequacy of 14.0% at March 31, 2010.
CONTINGENT LIABILITIES
|
Particulars |
31.03.2011 (Rs. in
millions) |
|
I. Claims
against the Bank not acknowledged as debts |
17022.222 |
|
II. Liability
for partly paid investments |
128.050 |
|
III. Liability
on account of outstanding forward exchange contracts1 |
2468618.342 |
|
IV. Guarantees
given on behalf of constituents |
|
|
a) In |
647336.491 |
|
b) Outside |
178935.843 |
|
V. Acceptances, endorsements
and other obligations |
393340.369 |
|
VI. Currency
swaps1 |
561284.711 |
|
VII. Interest
rate swaps, currency options and interest rate futures1. |
4903897.090 |
|
VIII. Other
items for which the Bank is contingently liable2 |
60653.022 |
|
TOTAL CONTINGENT
LIABILITIES |
9231216.140 |
1. Represents
notional amount.
2. Includes an
amount of Rs.1653.800 millions pertaining to government securities settled after
the Balance Sheet date, which are accounted as per settlement date method
pursuant to RBI guidelines issued during the year ended March 31, 2011.
WEBSITE DETAILS:
Corporate Profile
ICICI Bank is
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 in the areas of investment banking, life
and non-life insurance, venture capital and asset management.
The Bank currently has subsidiaries in the
ICICI Bank's equity shares are listed in
BUSINESS DESCRIPTION
Subject is a banking company. The Bank, together with its subsidiaries, joint ventures and associates, is a diversified financial services group providing a range of banking and financial services, including commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services. It operates under four segments: retail banking, wholesale banking, treasury and other banking. Retail Banking includes exposures, which satisfy the four criteria of orientation, product, granularity and low value of individual exposures for retail exposures. Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, which are not included under Retail Banking. Treasury includes the entire investment portfolio of the Bank. Other Banking includes hire purchase and leasing operations and other items. For the fiscal year ended 31 March 2011, Subject's net interest income decreased less than 1% to RS300.81B. Net interest income after loan loss provision increased 65% to RS81.79B. Net income applicable to common increased 30% to RS60.93B. Net interest income reflects lower income from interest on advance, a decrease in inter bank deposits interest expense. Net income reflects higher other income and increased gross profit margin.
Subject (the Bank), incorporated on January 5, 1994, is a banking company. The Bank, together with its subsidiaries, joint ventures and associates, is a diversified financial services group providing a range of banking and financial services, including commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services. It operates under four segments: retail banking, wholesale banking, treasury and other banking. Retail Banking includes exposures of the Bank, which satisfy the four criteria of orientation, product, granularity and low value of individual exposures for retail exposures. Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, which are not included under Retail Banking. Treasury includes the entire investment portfolio of the Bank. Other Banking includes hire purchase and leasing operations and other items. As of March 31, 2011, the Bank had 17 subsidiaries. On August 12, 2010, the Bank acquired The Bank of Rajasthan.
Retail Banking
The branch network serves as an integrated channel for deposit mobilization, selected retail asset origination and distribution of third-party products, as well as the focal point for customer service. During fiscal 2011, the Bank continued its focus on increasing the proportion of low-cost retail deposits in its funding base. During fiscal 2011, its retail disbursements increased as it focused on opportunities in residential mortgages, vehicle finance and construction equipment finance. The Company also continued to focus on cross-selling new products and products of its life and general insurance subsidiaries to its existing customers. As of March 31, 2011, the Bank had 2,529 branches. As of March 31, 2011, the Bank had 6,055 automated teller machines (ATMs). As of March 31, 2011, its ATMs offer services such as opening fixed deposits, payment of credit card and utility bills, payment of insurance premium, mobile re-charges and ultra fast cash.
Small Enterprises
The Company offers banking solutions to small and medium enterprises across industry segments. The Company supports the growth of the small and medium enterprises sector while adopting a cluster-based financing approach for enterprises with a homogeneous profile in industries, such as infrastructure, engineering, information technology, education, life-sciences and agri-based businesses. The Company also offers supply chain financing solutions to the channel partners of large corporates.
Corporate Banking
The Bank offers a suite of corporate banking products, including rupee and foreign currency debt, working capital credit, structured financing, loan syndication and commercial banking products and services. The Company also puts in place product specific teams with a view to focus on designing financial solutions for clients spread across structured finance, project finance, loan syndication and markets. The relationship team also works with its Markets Group to assist customers in devising and executing risk management strategies to address foreign currency, interest rate and liquidity risks. Its loan syndication franchise enables the Bank to structure, underwrite and syndicate rupee and foreign currency debt with Indian and offshore investors. The Bank has built robust sector-specific syndication skills across project finance, merger and acquisition (M and A) financing and structured finance to provide optimal financing solutions.
International Banking
The Company’s international banking business is focused on
meeting the foreign currency needs of its Indian corporate clients and
partnering them in their global expansion, taking select trade finance
exposures linked to imports to
The Company develops products and service offerings to meet the requirements of
the Non Resident Indian (NRI) community. The Bank launched I-Express, an
instant cross-border money transfer option for NRIs through its select partners
in the
Inclusive and Rural Banking
Inclusive and Rural Banking include offering credit to the rural market through the Bank's branches and dedicated field teams and financial inclusion through business correspondents. The Bank focuses on improving its product and service offerings to meet the requirements of all participants in the rural market, including farmers, traders, commission agents, small processors and other medium agri-corporates. In fiscal 2011, the Bank focused on building capacity to implement its financial inclusion plan. The Bank also focused on opening accounts for routing benefit payments under various government schemes and has received the mandate for opening accounts of individuals under these schemes in certain states.
The Bank has also identified 23 business correspondents having a network of 208
customer service points, to service these customers. The Company tied up with
Vodafone and Aircel for extending basic financial services through the mobile
platform. The Bank has also built lending capability in over 1,000 of its
branches for products targeted towards individual customers in the agri-value
chain. The Bank has also increased its product offerings in rural
Treasury
The Bank provides provide foreign exchange and derivative products and
services to customers through its Markets Group. These products and services
include foreign exchange products for hedging currency risk, foreign exchange
and interest rate derivatives, such as options and swaps and bullion
transactions.
BOARD OF DIRECTORS
Kundapur Vaman Kamath
Non-Executive
Chairman
Mr. Kundapur Vaman Kamath is Non-Executive Chairman of the
board of Subject He is Chairman of ICICI Bank Canada, ICICI Bank Eurasia
Limited Liability Company (formerly Investment Credit Bank Limited Liability
Company), ICICI Bank UK Limited, ICICI Lombard General Insurance Company
Limited, ICICI Prudential Life Insurance Company Limited, ICICI Securities
Limited, ICICI Venture Funds Management Company Limited, Prudential ICICI Asset
Management Company Limited. He is Director of Indian Institute of Management,
Ahmedabad, Visa International Asia Pacific Regional Board. He is Director --
Board of Governors Indian Institute of Information Technology and Member --
Governing Board Indian School of Business. Mr. Kamath is a mechanical engineer
and a post-graduate in business management from the Indian Institute of
Management, Ahmedabad. He joined ICICI in 1971 and worked in the areas of
project finance, leasing, resources and corporate planning. In 1988, he left
ICICI to join the Asian Development Bank, where he worked for six years. In
January 1995, he joined a private sector group in
Sridar A. Iyengar
Independent Director
Mr. Sridar A. Iyengar is Independent Director of Subject. He is Director of American India Foundation, Foundation for Democratic Reforms in India Inc., Infosys Technologies Limited, Mango Analytics Inc., Onmobile Asia Pacific Private Limited, Progeon Limited, Rediff.com India Limited, Rediff Holdings Inc., and TiE Inc.
N. S. Kannan
Chief Financial
Officer, Whole Time Director
Mr. N. S. Kannan BE, PGDM, CFA, is Chief Financial Officer, Whole
Time Director of Subject. He is an engineer and a Chartered Financial Analyst
from the Institute of Chartered Financial Analysts of India and has a
post-graduate degree in management from the Indian Institute of Management,
Homi R. Khusrokhan
Independent Director
Mr. Homi R. Khusrokhan is Independent Director of Subject He retired as the Managing Director of Tata Chemicals Limited in 2008. He has over 40 years experience in the corporate sector. He has earlier been the Managing Director of Tata Tea Limited and Glaxo India Limited. He has experience in agriculture related businesses, international business and mergers and acquisitions.
Arvind Kumar
Director - Nominee of
Government
Mr. Arvind Kumar has been appointed as Director - Nominee of Government of Subject, with effect from July 22, 2011. He is Joint Secretary, Department of Financial Services, Ministry of Finance.
Independent Director
Shri. M. S. Ramachandran is Independent Director of Subject He is former Chairman of Indian Oil Corporation. Mr. Ramachandran joined Indian Oil Corporation in 1969 and worked in several areas before being appointed Director (Planning and Business Development) in 2000. He was Chairman of Indian Oil Corporation from 2002 to 2005.
Krishnaswamy Ramkumar
Whole Time Director
Mr. Krishnaswamy Ramkumar B.Sc., PGDPM and IR, is Whole Time
Director of Subject He is a science graduate from
Venkatesan Sridar
Independent Director
Shri. Venkatesan Sridar is Independent Director of Subject
He retired as Chairman and Managing Director of UCO Bank in 2007. He has over
35 years of experience in the Indian banking sector. He started his career with
Union Bank of
Chanda D. Kochhar
Managing Director,
Chief Executive Officer
Ms. Chanda D. Kochhar BA, MMS, ICWAI, is Chief Executive Officer, Managing Director, Whole Time Director of Subject Ms. Kochhar was Joint Managing Director, Chief Financial Officer and Director of Subject She holds a management degree from the Jamnalal Bajaj Institute of Management Studies, Mumbai and a degree in cost and works accountancy from the Institute of Cost and Works Accountants of India. She started her career in 1984 with ICICI in its project finance department and has worked in the areas of corporate credit, infrastructure financing, e-commerce, strategy and retail finance. Ms. Kochhar was designated a Senior General Manager of ICICI in 2000 and was in charge of its retail business over the past six years. She was appointed to the board as an Executive Director in April 2001. Effective April 29, 2006, the board elevated her as Deputy Managing Director. Ms. Chanda Kochhar was appointed as Joint Managing Director and Chief Financial Officer of ICICI Bank. She is responsible for the Corporate Centre and is the official spokesperson for ICICI Bank. The board and shareholders have approved her re-appointment as a whole time director until March 31, 2011. Ms. Kochar is Chairperson of ICICI Home Finance Company Limited adn Director of ICICI Prudential Life Insurance Company Limited.
Pravir Vohra
President, Senior
Management
Mr. Pravir Vohra CAIIB, MA, is President, Senior Management
of Subject He is a post-graduate in economics from
PRESS RELEASES:
PRICE INCREASES
MAY HELP CONSUMER GOODS FIRMS' PROFITS
13 January 2012
New Delhi, January 13 -- Price increases are expected to help consumer goods makers post impressive revenue and profit numbers in the quarter ended 31 December, although slowing economic growth likely kept volume growth subdued. Amid signs of demand weakening, margins may have remained little changed in the fiscal third quarter given that companies passed on only a part of their cost increases to consumers.
Analysts who track the sector are estimating 14-20% sales and profit growth for consumer goods companies, according to a survey of reports by eight brokerages-Religare Capital Markets Limited, BNP Paribas, Edelweiss Securities Limited, Motilal Oswal Financial Services Limited, ICICI Securities Limited, IDFC Securities Limited, Prabhudas Lilladher Private Limited and Emkay Global Financial Services Limited
Earnings of consumer goods firms had risen 19.4% in the first six months of fiscal 2012, driven by sales growth of 18.4%.
"We are seeing a growth momentum in the top line, but the bottom line remains challenging with volatility in commodity costs and rupee depreciation," said Tarun Arora, executive vice-president and head of marketing at Godrej Consumer Products Limited (GCPL).
The extent of sales growth by volume will be keenly watched as it will serve as an indication of the impact of slowing economic growth on consumer demand in the coming quarters, analysts said. Prime Minister Manmohan Singh on Sunday said the economy is likely to grow about 7% this fiscal, slower than the government's revised forecast of about 7.5%. The economy grew 8.5% in 2010-11.
"Higher contribution of price hikes to revenue growth amidst rural volume slowdown should be the theme for this quarter across most of the companies in the consumer space," said a 10 January earnings preview by Ambit Capital Private Limited
Ambit expects revenue at Hindustan Unilever Limited (HUL),
It also expects lower advertising spending to support operating profit margin expansion by 170 basis points (bps), despite gross margin contraction year-on-year. A basis point is one-hundredth of a percentage point.
During the quarter, Nestle India Limited increased the price of Nescafe instant coffee by nearly 7%, and Marico Limited raised the price of Parachute hair oil 200ml and 500ml packs by 3-5% and Saffola Oats by 7%. Dabur India Limited increased the price of Dabur Red toothpaste by 4-5% and Lal Dant Manjan by 2-3%. HUL increased the price of Lux soaps by 5-6%, according to the earnings preview report by Prabhudas Lilladher.
The quarter showed mixed trends on input costs, with prices of some key raw materials such as linear alkylbenzene (LAB), an input for detergents, milk, packaging and titanium dioxide, which has a wide range of applications in consumer goods, sustaining at all-time highs. Prices of palm oil, sugar, copra and wheat, in contrast, saw some correction.
Gains from input cost corrections are likely to be neutralized by the rupee's depreciation. Companies such as HUL and GCPL, the maker of Cinthol soap and Hit insecticide, import palm fatty acid distillate, a key raw material for soaps. The rupee depreciated by about 7.5% in the December quarter.
"Gross margins are expected to see a dip year-on-year and remain flat or improve on a quarter-on-quarter basis," said Abneesh Roy, a consumer sector analyst at Motilal Oswal.
The rupee's depreciation would also adversely affect the balance sheets of companies with unhedged forex loans.
"Godrej Consumer, (which) has unhedged forex loans of $500 million, is likely to be the worst hit," said Motilal Oswal.
High input costs have resulted in a lower pool of funds for brand promotions and advertising. Consequently, very few significant new launches and new category entries were announced during the quarter.
HUL expanded its Lakme and Sunsilk range and introduced the Clinic Plus conditioner, while Nestle came out with Maggi Superoni and rebranded its milk and curd products as A+.
Dabur expanded its Fem portfolio to enter the professional facials market.
The sector will see some respite as food inflation fell to a two-year low in December, aiding consumers at the lower end to increase buying. Additionally, a strong winter, though delayed, is likely to lead to some improvement in sales of winter products from Emami Limited, the maker of Zandu balm and Emami cold cream, and HUL, said Edelweiss Securities in its results preview.
A subdued outlook for consumer demand in the coming months and the sharp rise in the stocks of consumer goods companies in the past few months may signal a decline to come in their share prices.
Motilal Oswal Financial Services, in a 4 January note, recommended that investors remain underweight on consumer companies, citing high valuations and the prospects of slowing demand growth because of weakening rural buoyancy. Stocks of companies that disappoint in volume growth in the December quarter are likely to be adversely affected.
The Bombay Stock Exchange's FMCG (fast-moving consumer goods) index rose nearly 4% in the December quarter, partly in anticipation that consumer goods companies will post better earnings. The FMCG index was the biggest sectoral gainer in 2011, rising 9.5%.
Price increases are expected to help consumer goods makers post impressive revenue and profit numbers in the quarter ended 31 December, although slowing economic growth likely kept volume growth subdued. Amid signs of demand weakening, margins may have remained little changed in the fiscal third quarter given that companies passed on only a part of their cost increases to consumers.
Analysts who track the sector are estimating 14-20% sales and profit growth for consumer goods companies, according to a survey of reports by eight brokerages-Religare Capital Markets Limited, BNP Paribas, Edelweiss Securities Limited, Motilal Oswal Financial Services Limited, ICICI Securities Limited, IDFC Securities Limited, Prabhudas Lilladher Private Limited and Emkay Global Financial Services Limited
Earnings of consumer goods firms had risen 19.4% in the first six months of fiscal 2012, driven by sales growth of 18.4%.
"We are seeing a growth momentum in the top line, but the bottom line remains challenging with volatility in commodity costs and rupee depreciation," said Tarun Arora, executive vice-president and head of marketing at Godrej Consumer Products Limited (GCPL).
The extent of sales growth by volume will be keenly watched as it will serve as an indication of the impact of slowing economic growth on consumer demand in the coming quarters, analysts said. Prime Minister Manmohan Singh on Sunday said the economy is likely to grow about 7% this fiscal, slower than the government's revised forecast of about 7.5%. The economy grew 8.5% in 2010-11.
"Higher contribution of price hikes to revenue growth amidst rural volume slowdown should be the theme for this quarter across most of the companies in the consumer space," said a 10 January earnings preview by Ambit Capital Private Limited
Ambit expects revenue at Hindustan Unilever Limited (HUL),
It also expects lower advertising spending to support operating profit margin expansion by 170 basis points (bps), despite gross margin contraction year-on-year. A basis point is one-hundredth of a percentage point.
During the quarter, Nestle India Limited increased the price of Nescafe instant coffee by nearly 7%, and Marico Limited raised the price of Parachute hair oil 200ml and 500ml packs by 3-5% and Saffola Oats by 7%. Dabur India Limited increased the price of Dabur Red toothpaste by 4-5% and Lal Dant Manjan by 2-3%. HUL increased the price of Lux soaps by 5-6%, according to the earnings preview report by Prabhudas Lilladher.
The quarter showed mixed trends on input costs, with prices of some key raw materials such as linear alkylbenzene (LAB), an input for detergents, milk, packaging and titanium dioxide, which has a wide range of applications in consumer goods, sustaining at all-time highs. Prices of palm oil, sugar, copra and wheat, in contrast, saw some correction.
Gains from input cost corrections are likely to be neutralized by the rupee's depreciation. Companies such as HUL and GCPL, the maker of Cinthol soap and Hit insecticide, import palm fatty acid distillate, a key raw material for soaps. The rupee depreciated by about 7.5% in the December quarter.
"Gross margins are expected to see a dip year-on-year and remain flat or improve on a quarter-on-quarter basis," said Abneesh Roy, a consumer sector analyst at Motilal Oswal.
The rupee's depreciation would also adversely affect the balance sheets of companies with unhedged forex loans.
"Godrej Consumer, (which) has unhedged forex loans of $500 million, is likely to be the worst hit," said Motilal Oswal.
High input costs have resulted in a lower pool of funds for brand promotions and advertising. Consequently, very few significant new launches and new category entries were announced during the quarter.
HUL expanded its Lakme and Sunsilk range and introduced the Clinic Plus conditioner, while Nestle came out with Maggi Superoni and rebranded its milk and curd products as A+.
MUMBAI STOCKS
LITTLE CHANGED
13 January 2012
NEW DELHI, Jan. 13 -- Indian shares closed little changed in
cautious and choppy trading ahead of industrial output data due on Thursday and
quarterly results that are expected to show a slowdown in earnings growth.
Software services firms were among the major losers, led by Infosys, which fell
1.29 per cent, and larger rival Tata Consultancy Services, which dropped 2.44
per cent. Infosys, which usually sets the tone for corporate earnings, is
expected to report a 30 per cent rise in December quarter profit on Thursday,
but the market will be focusing on any revision in its forecast for the fiscal
year ending March 31.
F AND O TOTAL
TURNOVER STOOD AT RS.1095463.800 MILLIONS ON JANUARY 12
13 January 2012
India, January 13 -- Future and Option (F and O) total turnover stood at Rs.1095463.800 millions on January 12 and the total numbers of contract traded on the day were 4467611.Of the total turnover, Index Futures contributed Rs.130242.000 millions, Stock Futures Rs.157423.900 millions and Index Options Rs.728624.100 millions while, the contribution of the Stock Options was of Rs.79173.800 millions. For the day the total F and O PutCall ratio stood at 0.92 while Index Options PutCall ratio was 0.97 and that of Stock Options was 0.55.The top five scrips with highest PCR on OI were Union Bank 7.00, CESC 5.20, Lupin 4.00, Dabur 3.60 and Gitanjali 3.01. Among most active underlying, Infosys witnessed addition of 0.87 million of Open Interest in the January month futures contract followed by SBI which witnessed contraction of 0.08 million of Open Interest in the near month contract. Meanwhile HDFC witnessed contraction of 0.32 million in the January month futures. Also, ICICI Bank witnessed an addition of 0.24 million in Open Interest in the January month contract. Finally, Reliance Industries witnessed a contraction of 0.05 million of Open Interest in the near month futures contract.
US
MARKET EDGE HIGHER AS EURO DEBT CONCERNS SUBSIDE
13 January 2012
India, January 13 -- The US markets closed higher on
Thursday, with the S and P 500 extending its advances into a fourth day, as the
Spanish and Italian auctions fueled optimism that Europe's debt crisis was not
worsening and overshadowed data on US jobless claims and retail sales that
disappointed investors in early trade. The
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.51.43 |
|
|
1 |
Rs.79.10 |
|
Euro |
1 |
Rs.66.17 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
73 |
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.