MIRA
INFORM REPORT
|
Report Date : |
08.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
ICICI BANK LIMITED |
|
|
|
|
Formerly Known
As : |
INDUSTRIAL CREDIT AND INVESTMENTS CORPORATION OF INDIA LIMITED |
|
|
|
|
Registered
Office : |
Landmark, |
|
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|
Country : |
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|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
05.01.1994 |
|
|
|
|
Com. Reg. No.: |
04-021012 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.11536.362
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L65190GJ1994PLC021012 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRD100221E AHMI00471C |
|
|
|
|
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. |
|
|
|
|
No. of Employees
: |
Information
denied by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (81) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
Large |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is the second largest bank in India in terms of asset size and
also one of the systematically important financial institutions in the
country. There appears a slight increase in the sales turnover as well as net
profitability during 2013. The ratings take into consideration the subject’s strong market
position, significant retail reach supported by wide spread branch network,
healthy capitalization levels, strong funding profile led by healthy casa
mix. Trade relations are fair. Business is active. Payment terms are
regular and as per commitments. The bank can be considered good for 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
AAA [Pass-through certificates] |
|
Rating Explanation |
Highest degree of safety and lowest credit risk. |
|
Date |
May 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
Management non co-operative [91-22-26538900]
LOCATIONS
|
Registered Office : |
Landmark, |
|
Tel. No.: |
91-265-2324318 / 2339923-27 |
|
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 |
|
Fax No.: |
91-22-26531122 |
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E-Mail : |
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Branch Office : |
Located At: ·
Himachal Pradesh ·
·
Haryana ·
Uttaranchal ·
·
Rajasthan ·
Uttar Pradesh ·
·
·
Madhya Pradesh ·
·
Jharkhand ·
·
·
Chattisgarh ·
Orissa ·
Andhra Pradesh ·
·
Karnataka ·
Tamilnadu ·
·
Kerala |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. K.V. Kamath |
|
Designation : |
Chairman |
|
Qualification: |
B.E. (Mech.) (PGDBA) |
|
Date of Appointment : |
01.05.1996 |
|
Previous
Employment: |
Bakrie Group, Indonesia - Adviser to the Chairman |
|
|
|
|
Name : |
Ms. Chanda
Kochhar |
|
Designation : |
Managing Director & CEO |
|
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|
Name : |
Mr. Dileep Choksi |
|
Designation : |
Director |
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|
Name : |
Mr. Homi Khusrokhan |
|
Designation : |
Director |
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|
Name : |
Mr. Arvind Kumar |
|
Designation : |
Director |
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|
Name : |
Ms. Swati Piramal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. M. S. Ramachandran |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Tushaar Shah |
|
Designation : |
Director |
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|
Name : |
Mr. V. Sridar |
|
Designation : |
Director |
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|
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|
Name : |
Mr. N. S. Kannan |
|
Designation : |
Executive Director & CFO |
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|
Name : |
Mr. K. Ramkumar |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Rajiv
Sabharwal |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Vijay Chandok |
|
Designation : |
President |
|
|
|
|
Name : |
Zarin Daruwala |
|
Designation : |
President |
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|
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|
Name : |
Mr. Sandeep Batra |
|
Designation : |
Group Compliance Officer & Company Secretary |
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Senior General Manager : |
|
|
Name : |
Mr. Sudhir Dole Mr. Mukeshkumar
Jain Mr. K.M. Jayarao Mr. Rakesh Jha Mr. Maninder
Juneja Ms. Shilpa Kumar Ms. Anita Pai Mr. Kumar Ashish Mr. Suresh
Badami Mr. Sanjay
Chougule Mr. Sujit
Ganguli Mr. Ajay Gupta Mr. Anil Kaul Mr. Sanjeev
Mantri Mr. Ravi
Narayanan Mr. Amit Palt Mr. Sanker
Parameswaran Mr. Murali
Ramakrishnan Ms. Supritha
Shetty Mr. Saurabh
Singh Mr. G. Srinivas Mr. Sriram H Mr. T. K.
Srirang Mr. Rahul Vohra |
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Audit Committee: |
|
|
Name: |
Mr. Homi
Khusrokhan, Chairman Mr. Dileep
Choksi, Alternate Chairman Mr. M. S.
Ramachandran Mr. V. Sridar |
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|
|
Board Governance, Remuneration and Nomination Committee: |
|
|
Name: |
Mr. K. V.
Kamath, Chairman Mr. Homi
Khusrokhan Mr. M. S. Ramachandran |
|
|
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Corporate Social
Responsibility Committee: |
|
|
Name : |
Mr. M. S.
Ramachandran, Chairman Mr. Arvind Kumar Mr. Tushaar Shah Ms. Chanda Kochhar |
|
|
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Credit Committee: |
|
|
Name: |
Mr. K.V. Kamath,
Chairman Mr. Homi
Khusrokhan Mr. M. S.
Ramachandran Ms. Chanda Kochhar |
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|
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|
Customer Service
Committee: |
|
|
Name: |
Mr. M. S.
Ramachandran Mr. V. Sridar Ms. Chanda Kochhar |
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|
|
|
Fraud Monitoring Committee: |
|
|
Name: |
Mr. V. Sridar, Chairman Mr. K. V. Kamath Mr. Dileep
Choksi Mr. Homi
Khusrokhan Mr. Arvind Kumar Ms. Chanda
Kochhar Mr. Rajiv Sabharwal |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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(B) Public Shareholding |
|
|
|
|
|
|
|
|
100739644 |
12.33 |
|
|
1117526 |
0.14 |
|
|
71934 |
0.01 |
|
|
175270896 |
21.45 |
|
|
437407809 |
53.54 |
|
|
1460426 |
0.18 |
|
|
1239393 |
0.15 |
|
|
221033 |
0.03 |
|
|
716068235 |
87.65 |
|
|
|
|
|
|
34470358 |
4.22 |
|
|
|
|
|
|
51969923 |
6.36 |
|
|
7225863 |
0.88 |
|
|
7259574 |
0.89 |
|
|
600 |
0.00 |
|
|
49140 |
0.01 |
|
|
704603 |
0.09 |
|
|
1025153 |
0.13 |
|
|
928103 |
0.11 |
|
|
14596 |
0.00 |
|
|
1957799 |
0.24 |
|
|
1442150 |
0.18 |
|
|
1137430 |
0.14 |
|
|
100925718 |
12.35 |
|
Total Public shareholding (B) |
816993953 |
100.00 |
|
Total (A)+(B) |
816993953 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
336587762 |
0.00 |
|
|
336587762 |
0.00 |
|
Total (A)+(B)+(C) |
1153581715 |
0.00 |
SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE
SECURITIES) OF PERSONS BELONGING TO THE CATEGORY “PUBLIC” AND HOLDING MORE THAN
1% OF THE TOTAL NUMBER OF SHARES
|
Sl. |
Name of the
Shareholder |
Details of
Shares held |
|
|
|
|
No. of Shares
held |
As a % of |
|
|
|
|
|
|
1 |
Deutsche Bank Trust Company Americas |
336587762 |
29.18 |
|
2 |
Life Insurance Corporation of India |
83100911 |
7.20 |
|
3 |
Government of Singapore |
24773024 |
2.15 |
|
4 |
Europacific Growth Fund |
18278406 |
1.58 |
|
5 |
Bajaj Allianz Life Insurance Company Limited |
12655640 |
1.10 |
|
6 |
Aberdeen Global Indian Equity Fund Mauritius Limited |
18080000 |
1.57 |
|
7 |
Carmignac Gestion A/c Carmignac Patrimoine |
17792910 |
1.54 |
|
8 |
SBI Life Insurance Company Limited |
13538365 |
1.17 |
|
|
Total |
524807018 |
45.49 |
SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE
SECURITIES) OF PERSONS (TOGETHER WITH PAC) BELONGING TO THE CATEGORY “PUBLIC” AND
HOLDING MORE THAN 5% OF THE TOTAL NUMBER OF SHARES OF THE COMPANY
|
Sl. |
Name of the
Shareholder |
Details of
Shares held |
|
|
|
|
No. of Shares
held |
As a % of |
|
|
|
|
|
|
1 |
Deutsche Bank Trust Company Americas |
336587762 |
29.18 |
|
2 |
Life Insurance Corporation of India |
83100911 |
7.20 |
|
|
Total |
419688673 |
36.38 |
BUSINESS 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. |
GENERAL INFORMATION
|
No. of Employees : |
Information
denied by the management. |
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Bankers : |
Reserve Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
|
|
Name : |
S.R. Batliboi
and Company Chartered Accountants |
|
Address : |
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Subsidiaries : |
·
ICICI Bank UK PLC ·
ICICI Bank Canada ·
ICICI Bank Eurasia Limited Liability Company ·
ICICI Prudential Life Insurance Company Limited1 ·
ICICI Lombard General Insurance Company Limited1 ·
ICICI Prudential Asset Management Company
Limited1 ·
ICICI Securities Limited ·
ICICI Securities Primary Dealership Limited ·
ICICI Home Finance Company Limited ·
ICICI Venture Funds Management Company Limited ·
ICICI International Limited ·
ICICI Trusteeship Services Limited ·
ICICI Investment Management Company Limited ·
ICICI Securities Holdings Inc. ·
ICICI Securities Inc. ·
ICICI Prudential Trust Limited1 ·
ICICI Prudential Pension Funds Management Company
Limited1 NOTE: 1. Jointly
controlled entities. |
|
|
|
|
Associates/ Joint Ventures/ Other Related Entities : |
·
ICICI Equity Fund1 ·
ICICI Eco-net Internet and Technology Fund1 ·
ICICI Emerging Sectors Fund1 ·
ICICI Strategic Investments Fund1 ·
ICICI Kinfra Limited1 ·
FINO PayTech Limited (formerly known as Financial
Inclusion Network and Operations Limited) ·
TCW/ICICI Investment Partners Limited ·
I-Process Services (India) Private Limited ·
NIIT Institute of Finance, Banking and Insurance
Training Limited ·
ICICI Venture Value Fund1 ·
Comm Trade Services Limited ·
ICICI Foundation for Inclusive Growth ·
I-Ven Biotech Limited1 ·
Rainbow Fund ·
ICICI Merchant Services Private Limited ·
Mewar Aanchalik Gramin Bank ·
India Infradebt Limited2 NOTE: 1. Entities
consolidated as per Accounting Standard (AS) 21 on ‘Consolidated Financial
Statements’. 2. This entity was
incorporated and identified as a related party during the three months ended
December 31, 2012. |
|
|
|
|
Domestic Subsidiaries : |
·
ICICI Prudential Life Insurance Company Limited ·
ICICI Lombard General Insurance Company Limited ·
ICICI Prudential Asset Management Company Limited ·
ICICI Prudential Trust Limited ·
ICICI Securities Limited ·
ICICI Securities Primary Dealership Limited ·
ICICI Venture Funds Management Company Limited ·
ICICI Home Finance Company Limited ·
ICICI Investment Management Company Limited ·
ICICI Trusteeship Services Limited ·
ICICI Prudential Pension Funds Management Company
Limited1 NOTE: 1. Subsidiary of
ICICI Prudential Life Insurance Company Limited |
|
|
|
|
International Subsidiaries : |
·
ICICI Bank UK PLC ·
ICICI Bank Canada ·
ICICI Bank Eurasia Limited Liability Company ·
ICICI Securities Holdings Inc.2 ·
ICICI Securities Inc.3 ·
ICICI International Limited NOTE: 1. Subsidiary of
ICICI Prudential Life Insurance Company Limited 2. Subsidiary of
ICICI Securities Limited 3. Subsidiary of
ICICI Securities Holdings Inc |
CAPITAL STRUCTURE
AS ON 31.03.2013
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 |
|
|
TOTAL |
|
Rs.17750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1152714442 |
Equity Shares |
Rs.10/- each
|
Rs.11527.144
Millions |
|
867273 |
Add: Equity Shares |
Rs.10/- each
|
Rs.8.673
Millions |
|
|
TOTAL |
|
Rs.11535.817 Millions |
|
|
Less: Call Unpaid |
|
Rs.0.225
Million |
|
111603 |
Add: Forfeited Equity Shares |
Rs.10/- each
|
Rs.0.770
Million |
|
|
TOTAL |
|
Rs.11536.362 Millions |
NOTES:
1. These shares
will be of such class and with such rights, privileges, conditions or restrictions
as may be determined by the Bank in accordance with the Articles of Association
of the Bank and subject to the legislative provisions in force for the time
being in that behalf.
2. Pursuant to RBI circular no. DBOD.BP.BC No.81/21.01.002/2009-10, the
issued and paid-up preference shares are grouped.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULAR |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
CAPITAL AND
LIABILITIES |
|
|
|
|
Capital |
11536.362 |
11527.683 |
11518.200 |
|
Employees stock options outstanding |
44.835 |
23.854 |
2.929 |
|
Reserves and Surplus |
655478.392 |
592500.885 |
539388.244 |
|
Deposits |
2926136.257 |
2554999.561 |
2256021.077 |
|
Borrowings |
1453414.944 |
1401649.073 |
1095542.771 |
|
Sundry Creditors |
62336.969 |
34537.725 |
31879.286 |
|
Other Liabilities and Provisions |
258999.052 |
295449.190 |
127984.181 |
|
|
|
|
|
|
TOTAL CAPITAL
AND LIABILITIES |
5367946.811 |
4890687.971 |
4062336.688 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Cash and Balances with Reserve Bank of |
190527.309 |
204612.935 |
209069.703 |
|
Balances with Banks and Money at Call and Short Notice |
223647.879 |
157680.199 |
131831.128 |
|
Investments |
1713935.993 |
1595600.430 |
1346859.630 |
|
Advances |
2902494.351 |
2537276.579 |
2163659.014 |
|
Fixed Assets |
46470.587 |
46146.870 |
47442.551 |
|
Other Assets |
290870.692 |
349370.958 |
163474.662 |
|
|
|
|
|
|
TOTAL ASSETS |
5367946.811 |
4890687.971 |
4062336.688 |
PROFIT & LOSS
ACCOUNT
|
PARTICULAR |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
INCOME |
|
|
|
|
Interest Earned |
400755.969 |
335426.522 |
259740.528 |
|
Other Income |
83457.012 |
75027.598 |
66478.925 |
|
TOTAL INCOME |
484212.981 |
410454.120 |
326219.453 |
|
|
|
|
|
|
EXPENDITURE |
|
|
|
|
Interest Expended |
262091.848 |
228084.964 |
169571.515 |
|
Operating Expenses |
90128.837 |
78504.433 |
66172.492 |
|
Provision and contingencies |
48737.569 |
39212.151 |
38961.684 |
|
TOTAL
EXPENDITURE |
400958.254 |
345801.548 |
274705.691 |
|
|
|
|
|
|
PROFIT AND LOSS |
|
|
|
|
Net Profit for the Year |
83254.727 |
64652.572 |
51513.762 |
|
Profit Brought Forward |
70542.323 |
50181.837 |
34643.807 |
|
Total Profit /
(Loss) |
153797.050 |
114834.409 |
86157.569 |
|
|
|
|
|
|
APPROPRIATION /
TRANSFERS |
|
|
|
|
Transfer to Statutory Reserve |
20820.000 |
16170.000 |
12880.000 |
|
Transfer to Reserve Fund |
27.775 |
10.665 |
0.360 |
|
Transfer to Capital Reserve |
330.000 |
380.000 |
832.500 |
|
Transfer to Investment Reserve Account |
0.000 |
0.000 |
(1160.000) |
|
Transfer to General Reserve |
0.000 |
0.000 |
2.584 |
|
Transfer to Revenue and Other Reserves |
0.000 |
3.154 |
|
|
Transfer to Special Reserve |
7600.000 |
6500.000 |
5250.000 |
|
Dividend (including Corporate Dividend Tax for the Previous Year Paid
During the Year) |
2.491 |
4.284 |
21.658 |
|
Proposed Equity Share Dividend |
23072.271 |
19020.400 |
16125.811 |
|
Proposed Preference Share Dividend |
0.035 |
0.035 |
0.035 |
|
Corporate Dividend Tax |
2921.604 |
2203.548 |
2022.784 |
|
Balance Carried Over to Balance Sheet |
99022.874 |
70542.323 |
50181.837 |
|
|
|
|
|
|
TOTAL |
153797.050 |
114834.409 |
86157.569 |
|
|
|
|
|
|
Earnings per share |
|
|
|
|
Basic (Rs.) |
72.20 |
56.11 |
45.27 |
|
Diluted (Rs.) |
71.93 |
55.95 |
45.06 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS:
|
Particulars |
31.03.2013 [Rs. in millions] |
31.03.2012 [Rs. in millions] |
31.03.2011 [Rs. in millions] |
|
Sundry Creditors |
62336.969 |
34537.725 |
31879.286 |
|
Sr. No. |
Check List by
Info Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
CHARGES:
|
ENTITY |
COMPETENT
AUTHORITY |
REGULATORY
CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
|
ICICI BANK Limited. |
RBI |
Did not comply
with “know your customer” norms in opening and/or operating the accounts |
Imposed Penalty
Rs.10.010 Million |
|
ICICI BANK Limited. |
RBI |
Did not comply
with “know your customer” norms in opening and/or operating the accounts |
Imposed Penalty
Rs.3.000 Million |
|
ICICI BANK Limited. |
SEBI |
Alleged failure in
making disclosure of shareholding/changes in shareholding to company as
required under regulations 13(3) and 13(5) of SEBI (prohibition of insider
trading) regulations, 1992 in matter of Jord Engineers India Limited. |
Reached
Settlement (Settlement Charges Rs.0.100 Million vide consent order) |
|
ICICI BANK Limited. |
RBI |
Did not adhere
to instructions issued by RBI in respect of derivatives, such as failure to
carry out due diligence in regard to suitability of products, selling
derivative products to users not having risk management policies and not
verifying underlying/adequacy of underlying and eligible limits under past
performance route |
Imposed Penalty
Rs.1.500 Million |
|
ICICI BANK Limited. |
RBI |
Did not adhere
to anti money laundering (AML) guidelines |
Imposed Penalty
Rs.0.500 Million |
CASE DETAILS
|
HIGH COURT OF
GUJARAT CIVIL
APPLICATION No. 261 of 2007 In O.J.APPEAL/
157/ 2007 (PENDING) Status : PENDING
CCIN No : 001073200700261 Next Listing
Date: 15/07/2013
OFFICE DETAILS
COURT PROCEEDINGS
AVAILABLE ORDERS
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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 India by Euro money, Best Integrated Consumer Bank Site
in Asia by Global Finance, Best Cash Management-Country Awards in India by The
Asset and Best Secondary Offering by Finance Asia. ICICI Bank noted as Bank of
the year 2006
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 capitalization 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 Vadodara, India is a publicly held banking company engaged in
providing a wide range of banking and financial services including commercial
banking and treasury operations. Subject is a banking company governed by the
Banking Regulation Act, 1949. The Bank also has overseas branches in Bahrain,
Dubai, Hong Kong, Qatar, Sri Lanka, Singapore, United States of America and
Offshore Banking Unit.
BUSINESS OVERVIEW:
ECONOMIC OUTLOOK:
During fiscal
2013, the economic environment remained challenging with growth slowing down
globally. India was impacted by both global and domestic events that led to
moderation in economic activity. India’s gross domestic product (GDP) grew by 5.0%
during the first nine months of fiscal 2013 as compared to 6.6% during the
corresponding period of fiscal 2012. The Central Statistical Organization, in
its advance estimates, has projected GDP to grow by 5.0% during fiscal 2013
compared to growth of 6.2% in fiscal 2012. Banking sector non-food credit
growth moderated from 16.8% at March 23, 2012 to 14.0% at March 22, 2013.
Deposit growth remained subdued at 14.3% with demand deposits recording a
growth of 5.9% at March 22, 2013. Amidst these short term challenges, the Bank
continued to stay focused on the long-term prospects of the Indian economy and
build capabilities for future growth. They believe that the strong underlying
fundamentals of the Indian economy with a young population will support strong
growth over the medium to long term, and their strategy revolves around
prudently managing short term challenges while being prepared to meet the needs
of a vibrant economy.
BUSINESS REVIEW:
During fiscal
2013, the Bank’s strategy focused on balancing growth, profitability and risk
management while continuing to invest in growing its franchise and enhancing
customer convenience. Despite a challenging macroeconomic environment they made
significant progress with sustained improvements in their net interest margins,
higher return on assets and healthy loan growth with a balanced funding mix.
RETAIL BANKING:
They continued to
focus on their strategy of “Khayaal Aapka” and building long-term relationship
with their customers. During the year, they launched a loyalty programme
“MySavings Rewards”. This programme allows customers to accumulate reward
points on a host of savings account transactions such as bill pay, online
shopping, EMI payments and many more. The programme already has over one
million customers who have started earning reward points. Further, they set up
24x7 fully electronic branches during the year aimed at providing simple,
effortless and convenient banking to their customers. These branches enable
customers to undertake real time transactions like cash deposits, cash
withdrawals, cheque deposit, fund transfer, opening fixed deposits, generating
bank statement and other transactions. These branches are also equipped with
video conferencing facility which allows with customer service staff interaction
when required.
During the year,
they harnessed digital channels innovatively for customer acquisition, customer
interactions and cross selling of products and strengthened their presence in
this space. They enhanced the product suite offered through their internet
banking platform and customized it to meet requirements of different customer
segments. Their mobile banking application has also grown and currently has
over one million customers. They have emerged as the market leader in mobile transactions
in value terms. They also pioneered social media-linked products during fiscal
2013 like Facebook banking and iWish, an online flexible recurring deposit.
iWish is an innovatively designed product, launched for the first time in
India, where a customer saves funds to fulfill a future desire or goal. The
customer has the flexibility to decide on when and how much to save for the
particular goal. They can also share their goals on Facebook with friends and
family who may choose to contribute towards the purpose. Further, for customers
who prefer to transact online, they enhanced their savings account portfolio
with the offering of “b2”, a fully online savings account. b2 targets the
rapidly growing internet savvy Indian population and offers an effortless
banking experience.
They also
continued to invest in building robust sales processes to provide a quicker and
error-free banking experience to their customers. The sales team in major
cities today offer “Tab Banking”, wherein they are able to open bank accounts
using tablets in less than 24 hours. These tablets are also equipped with
product videos introducing customers to various product features. Further,
“E-Locker”, an online service for storing important documents, was introduced
for wealth and privilege banking customers.
Customer
convenience, superior banking experience, technology innovations and a large
network of branches and ATMs continue to differentiate us in the banking
industry. They have the largest branch network among private sector banks. The
National Payments Corporation of India (NPCI) awarded us the “Best ATM
Operational Excellence Award, 2012” for the second consecutive year in fiscal
2013. During fiscal 2013, they added 348 branches and 1,475 ATMs to their
network, taking their branch and ATM count to 3,100 and 10,481 respectively at
March 31, 2013. This includes 54 dedicated branches and 25 dedicated lounges
for wealth segment customers. Their “May I Help You” desks at every branch are
now equipped to provide across-the-counter information related to transactions,
cheque deposits and account details.
They continue to
use advanced analytics to build customer relationships and gain a deeper
understanding of services and product needs of their customers. Analytics-based
trigger frameworks also play a critical role in the area of risk management and
transaction monitoring. These initiatives helped us achieve robust growth in
their retail business during fiscal 2013. There was a healthy growth in their
retail asset disbursements primarily contributed by secured assets. Their
mortgage loan and passenger car loan disbursements grew by 66% and 22%
respectively in fiscal 2013. They also continued to see strong momentum in
retail customer acquisition and growth in the retail deposit base across both
savings and term deposits.
India’s growth
potential is underscored by its young population and rising incomes. At ICICI
Bank, they believe that with 50% of India’s population under the age of 25
years, banking in the years to come will be led by technology and customer
convenience. They will continue to focus on introducing new products, channels
and innovative payment modes that blend with a young and changing India.
SMALL AND MEDIUM
ENTERPRISES:
Small and medium
enterprises (SMEs) are an important constituent of India’s economy. Their role
is critical in not only contributing to growth but also meeting the aspirations
of a developing economy. At ICICI Bank, they have partnered with SMEs not only
in terms of finance, but also by providing support in other areas like
transaction banking and investment needs of SMEs. They offer complete banking
solutions to SMEs across industry segments with a suite of products customized
to their business needs. They adopt a cluster-based financing approach for SMEs
with a homogeneous profile in industries such as infrastructure, engineering,
information technology, education, life sciences and agri-based industries, to
partner their growth ambitions. They also offer supply chain financing
solutions to the channel partners of large corporate. They have set up
dedicated desks in 364 branches specializing in SME banking. They have also
re-organized the business banking services at their branches with dedicated
current account desks at select branches. They have also introduced doorstep
banking and enhanced internet banking for SME customers.
Fiscal 2013 was a
challenging period for SMEs due to the moderation in economic activity. While
being cognizant of the subdued economic environment, they focused on judicious
portfolio growth by adopting a granular approach and maintaining a cautious
outlook on some sectors. They continued to focus on strengthening their
delivery capabilities for SME customers. A strong SME sector is fundamental to
building a resilient and dynamic corporate sector. ICICI Bank has always viewed
the SME segment as integral to India’s growth and will continue to partner with
them while building a healthy portfolio.
WHOLESALE BANKING:
Collaborating with
their corporate customers by providing comprehensive and customized financial
solutions for doing business in India and key geographies overseas has been the
core strategy of their Wholesale Banking Group. The Group manages relationships
with a number of large and mid-sized Indian corporate and multinational
companies operating in India. The Group services the financial requirements of
clients through a bouquet of products ranging from working capital finance,
export finance, trade and commercial banking products to rupee and foreign
currency term loans, and structured finance products.
Their Corporate
Banking Group is the front-end relationship team which services client
requirements across businesses. The relationship team works closely with
specific teams like project finance, structured finance, loan syndication,
commercial banking and markets group to develop suitable products that fulfill
specific needs of clients. The Structured Finance Group designs innovative and
customized products to meet the complex needs of their global clientele in
synergy with the Corporate Banking Group and International Banking Group. The
Structured Finance Group has been recognized as one of the leading arrangers
and underwriters of structured finance transactions in India, deriving strength
from its underwriting capabilities combined with the Bank’s extensive
experience, industry expertise and global presence.
The Syndications
Group is a leading player in the loan syndication market. It specializes in
structuring and syndicating large loans. Its knowledge and experience
facilitates timely response and seamless execution of corporate and project
finance transactions. The diversified pool of clients enables us to align the
unique requirements of clients with the varying requirements of investors. The
Mid-Markets Group was created recognizing the unique credit requirements of the
mid-sized corporate segment and the need to give distinct attention to clients
in this segment to enable them to eventually become large sized corporate. The
Group aims to be a partner in the growth of these clients, identifying business
needs and offering tailor-made banking services including term loans, export
and working capital finance, trade and transactional services and cash
management services. The target segment of this Group comprises corporates that
have transitioned beyond the SME segment and need more complex banking
services.
The Commercial
Banking Group offers comprehensive banking products and services to meet the
trade, transaction banking and cash management needs of companies. The Group
works closely with the Corporate Banking Group to diversify the revenue streams
from corporate clients and enhance the granularity and stability of revenues
for the Bank. Superior customer service levels combined with quick turnaround
offered through their mega branches have helped in growing their transaction
banking business. The relationship teams also work with the Markets Group to
assist customers in addressing currency and market risk in their businesses by
offering relevant products.
Fiscal 2013 was a
challenging period for the Indian corporate sector due to significant slowdown
in new investment opportunities and asset quality concerns in some areas.
During the year, they actively managed their portfolio while pursuing selective
new lending opportunities. At the same time, they continued to explore and
identify sustainable revenue possibilities in synergy with their commercial
banking strategy. They will continue to offer comprehensive financial services
across a spectrum of financial products to their clients and partner them while
judiciously growing their portfolio.
PROJECT FINANCE:
While the momentum
in infrastructure investments slowed down during fiscal 2013, certain policy
initiatives were taken during the year that have improved the prospects for
investments in infrastructure in the coming years.
The Government has
proposed modifications to the existing standard bid documents to make fuel a
pass through for tariffs which would encourage new investments in the power
sector. There are also initiatives towards granting approvals for coal mines.
Further, the Government is also actively working on improving the fuel
availability for various power projects. The proposal to take up coal mining in
partnership with the private sector will improve availability of coal. These
measures are expected to ensure the viability of investments in power
generation assets. With greater private sector participation, projects in
regional and inter-regional transmission corridors are expected which would
strengthen the national grid. The renewable energy segment has gained momentum
with more states formulating policies to encourage new investments in this
segment.
In roads and ports
sectors, they expect to see an increase in activity during fiscal 2014 with new
projects likely to be awarded. The National Highway Authority of India (NHAI)
is planning to award up to 4,000 km of roads through engineering, procurement
and construction (EPC) contracts during the year. The Government has also
decided to constitute a regulatory authority for the road sector to expedite
development and address challenges faced by the sector. In the port sector,
about 30 port projects are expected to be awarded. The railway sector is also expected
to witness increased investment in logistics development, track infrastructure
(including dedicated freight corridors) and rolling stock, enabling higher
movement of rakes.
In the oil and gas
sector, most of the activity is expected to be linked to demand for natural
gas. The demand for gas from priority sectors such as power and fertilizer is
likely to continue, maintaining pressure on domestic supplies of gas.
Significant additions to LNG import capacity have been announced with
commissioning expected over the next four to five years. With the announcement
of a new fertilizer policy, the urea sector is also expected to see capacity
additions. Their long experience in project finance, deep sectoral expertise
and innovative structuring capabilities have placed us in a position to
capitalise on these opportunities and cater to the long-term financing
requirements of Indian corporates. Infrastructure development is a critical
area to improve the economic potential of the country, and they remain committed
to partnering with companies in promoting viable projects.
INTERNATIONAL
BANKING:
Their
international banking strategy is focused on providing end-to-end solutions for
the international banking requirements of their Indian corporate clients,
leveraging economic corridors between India and the rest of the world and
establishing ICICI Bank as the preferred bank for non-resident Indians in key
global markets. Further, during fiscal 2013, despite the volatile economic
environment, India remained an attractive market for most major global
corporations, and ICICI Bank’s International Banking Group seeks to partner
them as they expand in India. They also seek to build stable international
funding sources and strong syndication capabilities to support their corporate
and investment banking business, and to expand private banking operations for
India-centric asset classes.
Their
international footprint consists of subsidiaries in the United Kingdom, Russia
and Canada, branches in the United States, Singapore, Bahrain, Hong Kong, Sri
Lanka, Dubai International Finance Centre and Qatar Financial Centre and
representative offices in the United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. The Bank’s wholly owned
subsidiary ICICI Bank UK PLC has eleven branches in the United Kingdom and a
branch each in Belgium and Germany. ICICI Bank Canada has nine branches. ICICI
Bank Eurasia, their Russian subsidiary, is headquartered in Moscow with a
branch in St. Petersburg. They opened their second retail branch in Hong Kong
in fiscal 2013.
During fiscal
2013, the global economic environment was characterized by slow and prolonged
recovery in advanced economies and growth slowdown in emerging economies. In
this environment, they continued to focus on managing the risks to growth in
their international operations. They also focused on diversifying the mix of
their funding profile in their international operations. They continued to
focus on expanding their trade finance business and their relationships with
global corporate doing business in India.
India continues to
remain the largest remittance receiving country in the world and ICICI Bank has
a significant market share in remittances. This has been made possible through
their diversified products and service offerings to meet the requirements of
the widely dispersed NRI diaspora. The emphasis in fiscal 2013 was on further
expanding access to remittance services through new partnerships and channels
and delivering a superior customer service experience. ICICI Bank received the
Best Remittance Business Award 2012, at Asia’s prestigious retail banking
event, Excellence in Retail Financial Services Convention, organized by the
Asian Banker.
RURAL AND
INCLUSIVE BANKING:
At the ICICI
Group, they view expanding access to banking and other financial services as a
critical element of inclusive growth. During fiscal 2013, they focused on
expanding their outreach to rural and semi-urban markets and providing complete
financial solutions to customers in this segment.
They improved
their presence in rural markets by expanding their branch and business
correspondent network. During the year, they added 152 rural branches and 85
semi-urban branches, taking the total count of branches in the rural and semi
urban areas to 1,453 at March 31, 2013. This includes 131 low cost Gramin
branches opened in unbanked villages across ten states. These branches provide
credit and deposit products (including 127 Gramin branches opened in fiscal 2013)
specifically catering to rural customers. Their business correspondent network
includes over 25 business correspondents with a network of over 7,500 customer
service points. They provide micro-savings, remittance and deposit products
through this channel. Technology has been a critical contributor to the success
of the business correspondent model, with the use of innovative technology
solutions such as biometric enabled Point of Sale (POS) devices and mobile
handsets. They now cover over 13,500 villages through their branches and
business correspondent network.
At March 31, 2013,
they had 14.9 million basic savings bank deposit accounts (also known as
no-frills savings accounts) compared to 9.8 million basic savings bank deposit
accounts at March 31, 2012. Apart from savings products, their rural banking
strategy also includes providing a range of asset products like kisan credit
cards, jewel loans, self-help group (SHG) loans, commodity financing to
farmers, business credit for rural enterprises, farm equipment loans and
commercial vehicle loans. They emerged as a leading provider of electronic
benefit transfer (EBT) services during fiscal 2013. By March 31, 2013, they had
initiated EBT payment facilities in 48 districts across 11 states. The Bank was
also among the first to implement Direct Benefit Transfer (DBT), wherein
government social benefits are directly transferred to the beneficiaries using
the Aadhaar platform. DBT payments have been successfully processed for schemes
like Social Security Pension (SSP), Mahatma Gandhi National Rural Employment
Guarantee Scheme (MGNREGS), Janani Suraksha Yojna (JSY) and National Rural
Health Mission (NRHM) across four states.
They also made
significant progress in scaling up their SHG Bank Linkage Programme. They have
differentiated their offering in this segment by significantly reducing the
turnaround time in providing credit. They work with over 200 entities in this
area and have provided credit linkage to about 300,000 individuals, primarily
women, through loans to over 25,000 SHGs, of which over 50% were credit-linked
for the first time. Their progress has been recognized by several agencies
including the National Bank for Agriculture and Rural Development (NABARD).
In urban India,
there is a large low-income migrant population which requires customized,
low-cost products that can help them transfer funds to their home
towns/villages. To fulfill this need, they have set up remittance outlets in
over 50 major urban centers including Delhi, Mumbai, Surat, Ahmedabad and
Ludhiana. Through these outlets, they have processed over 3,77,000 transactions
for over 1,00,000 customers. During the year, they also launched “Mobile Money”
in association with telecom companies like Aircel, Tata Teleservices and
Vodafone which targets the urban unbanked population. “Mobile Money” can be
operated through a simple set of instructions using various access channels. It
aims at improving financial inclusion by offering a gamut of financial services
such as deposits and cash withdrawals, money transfer to third parties,
recharging of prepaid mobile credit and payment of utility bills. Going
forward, they will continue to focus on expanding their rural and semi-urban
outreach and providing a comprehensive range of products and services
customized to the needs of different customer segments in these markets.
KEY SUBSIDIARIES:
ICICI PRUDENTIAL LIFE INSURANCE COMPANY (ICICI LIFE):
ICICI Life
successfully maintained its leadership amongst private players in new business
premium on retail weighted basis with a market share of 7.0% in fiscal 2013.
ICICI Life’s total premium for fiscal 2013 was Rs. 135.38 billion and new
business annualized premium equivalent premium was Rs. 35.32 billion. ICICI
Life’s unaudited new business profit in fiscal 2013 was Rs. 5.29 billion. The
profit after tax was Rs. 14.96 billion in fiscal 2013 compared to Rs. 13.84
billion in fiscal 2012. The total sum assured by ICICI Life, including the
group insurance business, increased by 14.1% from Rs. 2,416.86 billion at March
31, 2012 to Rs. 2,757.71 billion at March 31, 2013.
ICICI LOMBARD
GENERAL INSURANCE COMPANY (ICICI GENERAL):
ICICI General
maintained its leadership in the private sector with an overall market share of
9.5% in fiscal 2013. ICICI General’s gross written premium grew by 19.8% from
Rs. 53.58 billion in fiscal 2012 to Rs. 64.20 billion during fiscal 2013. The
profit after tax was Rs. 3.06 billion in fiscal 2013 compared to a loss of Rs.
4.16 billion in fiscal 2012. The loss in fiscal 2012 was due to the recognition
of additional losses related to the third party motor pool (a multilateral
reinsurance arrangement covering all third party risk of commercial vehicles)
in accordance with the Insurance Regulatory and Development Authority order
dated March 22, 2012 applicable to all general insurance companies.
ICICI PRUDENTIAL
ASSET MANAGEMENT COMPANY (ICICI AMC):
ICICI AMC is the
third largest asset management company in India with average mutual fund assets
under management of Rs. 878.35 billion for the quarter ended March 31, 2013.
ICICI AMC achieved a profit after tax of Rs. 1.10 billion in fiscal 2013
compared to Rs. 0.88 billion in fiscal 2012.
ICICI VENTURE
FUNDS MANAGEMENT COMPANY (ICICI VENTURE):
ICICI Venture, despite
a challenging environment for alternate asset managers, maintained its
leadership position as a specialist alternative asset manager based in India
through its presence in diversified asset classes of private equity,
infrastructure, real estate and special situations. ICICI Venture achieved a
profit after tax of Rs. 0.20 billion in fiscal 2013 compared to a profit after
tax of Rs. 0.68 billion in fiscal 2012.
ICICI SECURITIES
(I-SEC):
Market conditions
in fiscal 2013 continued to be difficult for capital market related entities.
I-Sec continued to expand its client base across various business segments,
assisting its customers in meeting their financial goals by providing them with
research, advisory and execution services. I-Sec maintained its market
leadership in the retail broking business. The company achieved a profit of Rs.
0.68 billion in fiscal 2013 compared to Rs. 0.77 billion in fiscal 2012.
ICICI SECURITIES
PRIMARY DEALERSHIP (I-SEC PD):
I-Sec PD’s
corporate debt placement volumes rose to cross Rs. 900.00 billion in fiscal
2013. During the year I-Sec PD was awarded the “Best Bond House – India” by
Euromoney. I-Sec PD achieved a profit after tax of Rs. 1.22 billion in fiscal
2013 compared to Rs. 0.86 billion in fiscal 2012.
ICICI BANK UK PLC
(ICICI BANK UK):
ICICI Bank UK’s
profit after tax for fiscal 2013 was US$ 14.4 million compared to US$ 25.4
million in fiscal 2012. At March 31, 2013, ICICI Bank UK plc had total assets
of US$ 3.6 billion compared to US$ 4.1 billion at March 31, 2012. Its capital
position was strong with a capital adequacy ratio of 30.8% at March 31, 2013
compared to 32.4% at March 31, 2012. During fiscal 2013, ICICI Bank UK
repatriated US$ 100 million of aggregate capital to the Bank, which included
redemption of US$ 50 million of preference share capital and return of US$ 50
million of equity capital, after receiving requisite approvals.
ICICI BANK CANADA:
ICICI Bank
Canada’s profit after tax for fiscal 2013 was CAD 43.6 million compared to CAD
34.4 million in fiscal 2012. At March 31, 2013, ICICI Bank Canada had total
assets of CAD 5.4 billion compared to CAD 5.2 billion at March 31, 2012. ICICI
Bank Canada had a capital adequacy ratio of 33.2% at March 31, 2013 compared to
31.7% at March 31, 2012.
MANAGEMENT’S DISCUSSION
AND ANALYSIS:
BUSINESS
ENVIRONMENT:
Economic activity
in India continued to moderate during fiscal 2013. Global economic conditions
also remained weak with slowdown in growth in developed and emerging economies.
While a supportive policy environment in developed economies prevented any
crisis situation, uncertainty around revival in global growth remained a
concern through the year.
India’s gross
domestic product (GDP) grew by 5.0% during the first nine months of fiscal 2013
compared to a growth of 6.6% in the corresponding period of fiscal 2012. The
services sector grew by 6.7% during the first nine months of fiscal 2013
compared to 8.5% during the first nine months of fiscal 2012. The industrial
sector grew by 3.2% and agriculture sector by 4.0% during the first nine months
of fiscal 2013 compared to a growth of 4.0% and 4.3% respectively in the
corresponding period of fiscal 2012. Private consumption growth moderated to
2.9% during the first nine months of fiscal 2013 compared to a growth of 7.4%
in the corresponding period of fiscal 2012. Investments, as measured by gross
fixed capital formation, grew by 0.1% during the first nine months of fiscal
2013 compared to a growth of 5.0% in the corresponding period of fiscal 2012.
The Central Statistical Organization has estimated GDP growth for fiscal 2013
at 5.0% compared to 6.2% in fiscal 2012 and 9.3% in fiscal 2011.
Inflation,
measured by the Wholesale Price Index (WPI), remained above 7.0% between April 2012
and January 2013, and subsequently eased to 6.0% in March 2013. The moderation
in inflation was driven by the manufactured products segment where inflation
increased from 5.3% in April 2012 to 6.5% in September 2012 before easing to
4.1% in March 2013. Inflation in food articles remained high through the year
with the average inflation at 9.9% in fiscal 2013 compared to 7.3% in fiscal
2012. Fuel inflation which initially eased picked up in the later part of the
year due to hike in petrol prices and partial deregulation of diesel prices.
Core inflation (defined as manufactured products excluding food products)
reduced from 5.0% in March 2012 to 3.4% in March 2013. Average inflation for
fiscal 2013 was 7.3% compared to 8.9% in fiscal 2012.
The Reserve Bank
of India (RBI) undertook a calibrated easing of monetary policy during the
year. During fiscal 2013, the repo rate was reduced by 100 basis points from
8.50% to 7.50% with a 50 basis points cut in April 2012 followed by a 25 basis
points reduction each in January 2013 and March 2013. The cash reserve ratio
(CRR) was reduced by 75 basis points during the year from 4.75% to 4.00%, with
a 25 basis point cut each effective in September 2012, November 2012 and
February 2013. Further, in August 2012, the statutory liquidity ratio was
reduced by 100 basis points from 24.0% to 23.0%.
Liquidity in the
system continued to remain in deficit through fiscal 2013. Average borrowing by
banks under the liquidity adjustment facility window of RBI increased from Rs.
798.78 billion in fiscal 2012 to Rs. 841.16 billion in fiscal 2013. The average
borrowing by banks under the liquidity adjustment facility window was over Rs.
960.00 billion in the second half of fiscal 2013. In view of the tight
liquidity conditions, RBI injected liquidity through open market operations
aggregating around Rs. 1,550.00 billion during fiscal 2013 in addition to the
reduction in CRR. The yields on the benchmark 10-year government securities
decreased by about 58 basis points from 8.54% at March 30, 2012 to 7.96% at
March 28, 2013.
A series of policy
measures were announced by the Government during the later part of fiscal 2013.
The key developments included approval of the Banking Laws (Amendment) Bill
2011 by both houses of Parliament, announcement of fiscal consolidation roadmap
by the Government, approval of 51% foreign direct investment in multi-brand
retail, formation of the Cabinet Committee on Investments to expedite
investments in projects, partial deregulation of diesel prices, increase in
petrol prices and railway passenger fares and deferral of General Anti
Avoidance Rules (GAAR) implementation to fiscal 2017. These announcements had a
positive impact on market sentiment.
The Indian equity
markets improved due to favourable global liquidity conditions and domestic
events. The extraordinary liquidity support announced by the US, EU and Japan
had a positive impact on global financial markets. This was further supported
by gradual improvement in US economic indicators. The benchmark equity index,
the BSE Sensex, increased by 8.2% during fiscal 2013, rising from 17,404 at
March 31, 2012 to a peak of 20,104 at January 25, 2013, before moderating to
18,835 at March 28, 2013. Foreign institutional investment (FII) flows were
significantly higher during the year, with net inflows of USD 29.00 billion
during fiscal 2013 compared to USD 16.81 billion inflows during fiscal 2012.
Foreign direct investments moderated to USD 21.10 billion and external
commercial borrowings to USD 4.72 billion during the first nine months of
fiscal 2013 compared to USD 28.74 billion and USD 6.89 billion respectively
during the corresponding period of fiscal 2012. During the first nine months of
fiscal 2013, a steeper decline in India’s exports compared to imports led to a rise
in the current account deficit to 5.3% of GDP. However, India’s balance of
payments had a marginal surplus of USD 1.15 billion during the first nine
months of fiscal 2013 as against a deficit of USD 7.09 billion during the
corresponding period of fiscal 2012, reflecting strong portfolio investment
inflows. The rupee depreciated by 6.3% against the US dollar from Rs. 51.16 per
US dollar at March 30, 2012 to Rs. 54.39 per US dollar at March 28, 2013.
Non-food credit
growth moderated during fiscal 2013 from 16.8% at March 23, 2012 to 14.0% at
March 22, 2013. Based on sector-wise data, year-on-year growth in credit to
industry was 15.7% and to the services sector was 13.6% at March 22, 2013.
Credit to the infrastructure sector grew by 16.5% year-onyear at March 22, 2013
compared to an 20.5% increase at March 23, 2012 and a 37.8% increase at March
25, 2011. Retail loan growth increased to 14.5% year-on-year at March 22, 2013
compared to 12.9% at March 23, 2012. Deposit growth remained muted during the
year recording year-on-year growth of 14.3% at March 22, 2013 compared to 13.5%
growth at March 23, 2012. Demand deposit growth was 5.9% year-on-year at March
22, 2013.
First year retail
premium underwritten in the life insurance sector increased (on weighted received
premium basis) to Rs. 389.56 billion in fiscal 2013 from Rs. 382.54 billion in
fiscal 2012. Gross premium of the non-life insurance sector (excluding
specialised insurance institutions) grew by 18.4% to Rs. 647.07 billion during
fiscal 2013 from Rs. 546.45 billion during fiscal 2012. The average assets
under management of mutual funds increased by 22.8% from Rs. 6,647.92 billion
in March 2012 to Rs. 8,166.57 billion in March 2013.
SOME KEY
REGULATORY DEVELOPMENTS IN THE INDIAN FINANCIAL SECTOR DURING FISCAL 2013
INCLUDE:
• In May 2012,
RBI’s final guidelines on implementation of Basel III capital regulations were
released. These guidelines require, among other things, higher levels of Tier-1
capital and common equity, capital conservation buffers, higher deductions from
common equity and Tier-1 capital for investments in subsidiaries and changes in
the structure of non-equity instruments eligible for inclusion in Tier-1
capital. The guidelines are to be fully implemented by March 2018. While the initial
date for commencing implementation was January 1, 2013, it was later deferred
to April 1, 2013.
• In June 2012,
RBI prohibited foreclosure charges and pre-payment penalties on home loans on a
floating interest rate basis.
• In July 2012,
RBI issued revised guidelines on priority sector lending requirements. While
keeping the lending targets unchanged, the revised guidelines made certain
changes to the categories of lending that would be eligible for classification
as priority sector lending and its sub-segments. The guidelines aim to increase
direct agricultural lending by banks to individuals. The guidelines also
stipulate that investments by banks in securitized assets and outright
purchases of loans and assignments would be eligible for classification under
the priority sector. The guidelines also increased the priority sector lending
requirements for foreign banks in India that have 20 or more branches, in order
to bring them on par with domestic banks. In October 2012, RBI announced
revisions to the priority sector lending norms. Loans up to Rs. 20.0 million to
partnership firms, cooperatives and corporates directly engaged in agricultural
activities were made eligible for classification under direct agriculture
lending. Also, loans to housing finance
companies for on-lending for housing up to Rs. 1.0 million per borrower were
included under priority sector lending.
• In November
2012, the RBI increased the general provisioning on restructured standard
accounts from 2.00% to 2.75%.
• In November 2012,
RBI released draft guidelines on liquidity risk management and the Basel III
framework on liquidity standards. The draft guidelines provide for monitoring
and reporting of a liquidity coverage ratio, which is designed to ensure that a
bank maintains an adequate level of liquid assets to survive an acute liquidity
stress scenario lasting one month, and a net stable funding ratio designed to
ensure a minimum amount of funding that is expected to be stable over a
one-year time horizon.
• In December 2012,
Parliament passed the Banking Laws (Amendment) Bill, which, inter alia, permits
all banking companies to issue preference shares that will not carry any voting
rights; mandates prior approval of RBI for the acquisition of more than 5.0% of
a banking company’s paid-up capital or voting rights by any individual or firm
or group; empowers RBI, after consultations with the Central Government, to
supersede the board of a private sector bank for a total period not exceeding
12 months, during which time RBI will have the power to appoint an
administrator to manage the bank; empowers RBI to inspect affiliates of banking
entities (affiliates include subsidiaries, holding companies or any joint
ventures of banks); and eases the restrictions on voting rights by making them
proportionate to the shareholding up to a cap of 26% in case of private sector
banks (earlier 10%), and 10% in the case of public sector banks (earlier 1%).
• In December
2012, the Lok Sabha passed the Companies Bill 2011 which would amend the Companies
Act 1956. The provisions of the Bill include making independent directors more
accountable and improving corporate governance practices. The Bill also seeks
to make corporate social responsibility mandatory for companies above a certain
size and require them to spend a minimum of 2% of the average net profits of
the preceding three years for corporate social responsibility initiatives. Any
shortfall in this regard is required to be explained in the annual report. The
Bill is pending approval of the Rajya Sabha.
• In January 2013,
the RBI issued draft guidelines on restructuring of advances. The draft
guidelines propose that with effect from April 1, 2015, loans that are
restructured (other than in the infrastructure sector) would be classified as non-performing.
The general provision required on restructured standard accounts would increase
to 3.75% from March 31, 2014 and to 5.0% from March 31, 2015. General
provisions on standard accounts restructured after April 1, 2013 would be at
5.0%.
• RBI through a
notification issued on January 31, 2013 mandated banks to disclose further
details on restructured accounts in their annual reports. This includes
disclosing restructured accounts on a cumulative basis excluding the standard
restructured accounts which cease to attract higher provision and/or higher
risk weight, the provisions made on restructured accounts under various
categories and details of movement of restructured accounts.
• In February
2013, RBI issued guidelines on the entry of new banks in the private sector
including eligibility criteria, structure, capital requirements, shareholding
structure and corporate governance practices. Select entities or groups in the
private sector, entities in the public sector and non-banking financial companies
with a successful track record of at least ten years would be eligible to
promote banks. The initial minimum capital requirement for these entities is
Rs. 5.00 billion, with foreign shareholding not exceeding 49.0% for the first
five years. Applications for setting up of new banks have been sought by July
1, 2013.
• In March 2013,
the Insurance Regulatory and Development Authority issued guidelines on
nonlinked life insurance products which include limits on the commission rates
payable by insurance companies, introduction of minimum guaranteed surrender
value and minimum death benefits. The new guidelines would require life
insurance companies to modify existing non-linked products which do not comply
with the revised guidelines.
STANDALONE
FINANCIALS AS PER INDIAN GAAP:
SUMMARY:
During fiscal
2013, they focused on sustainable value creation by balancing growth,
profitability and risk management. Their profit after tax increased by 28.8%
from Rs. 64.65 billion in fiscal 2012 to Rs. 83.25 billion in fiscal 2013. The
increase in profit after tax was mainly due to 29.2% increase in net interest
income and 11.3% increase in non-interest income offset, in part, by a 14.8%
increase in non-interest expenses and 13.9% increase in provisions and
contingencies (excluding provisions for tax). Net interest income increased by
29.2% from Rs. 107.34 billion in fiscal 2012 to Rs. 138.66 billion in fiscal
2013, reflecting an increase of 38 basis points in net interest margin and an
increase of 13.5% in average interest-earning assets.
Non-interest
income increased by 11.3% from Rs. 75.02 billion in fiscal 2012 to Rs. 83.46
billion in fiscal 2013. The increase in non-interest income was primarily due
to a gain of Rs. 4.95 billion from treasury-related activities in fiscal 2013
compared to a loss of Rs. 0.13 billion in fiscal 2012 and an increase in
dividend income from subsidiaries from Rs. 7.36 billion in fiscal 2012 to Rs.
9.12 billion in fiscal 2013. Fee income increased by 2.9% from Rs. 67.07
billion in fiscal 2012 to Rs. 69.01 billion in fiscal 2013.
Non-interest
expenses increased by 14.8% from Rs. 78.50 billion in fiscal 2012 to Rs. 90.13
billion in fiscal 2013 primarily due to an increase in employee expenses and
other administrative expenses. Provisions and contingencies (excluding
provisions for tax) increased by 13.9% from Rs. 15.83 billion in fiscal 2012 to
Rs. 18.03 billion in fiscal 2013. The increase in provisions and contingencies
(excluding provisions for tax) was primarily due to an increase in provisions
for non-performing and restructured loans in the Small and Medium Enterprises
(SME) and corporate loan portfolio.
Total assets
increased by 9.8% from Rs. 4,890.69 billion at March 31, 2012 to Rs. 5,367.95
billion at March 31, 2013. Total deposits increased by 14.5% from Rs. 2,555.00
billion at March 31, 2012 to Rs. 2,926.14 billion at March 31, 2013. Savings
account deposits increased by 12.6% from Rs. 760.46 billion at March 31, 2012
to Rs. 856.51 billion at March 31, 2013. The current and savings account (CASA)
ratio was 41.9% at March 31, 2013 compared to 43.5% at March 31, 2012. Term
deposits increased by 17.7% from Rs. 1,444.81 billion at March 31, 2012 to Rs.
1,700.37 billion at March 31, 2013. Total advances increased by 14.4% from Rs.
2,537.28 billion at March 31, 2012 to Rs. 2,902.49 billion at March 31, 2013
primarily due to an increase in the domestic corporate and retail loan book.
The net non-performing asset ratio increased marginally from 0.62% at March 31,
2012 to 0.64% at March 31, 2013.
They continued to
expand their branch network in India. Their branch network in India increased
from 2,752 branches and extension counters at March 31, 2012 to 3,100 branches
and extension counters at March 31, 2013. They also increased their ATM network
from 9,006 ATMs at March 31, 2012 to 10,481 ATMs at March 31, 2013.
The total capital
adequacy ratio of ICICI Bank on a standalone basis at March 31, 2013 in
accordance with RBI guidelines on Basel II was 18.74% with a Tier-1 capital
adequacy ratio of 12.80% compared to a total capital adequacy ratio of 18.52%
and Tier-1 capital adequacy ratio of 12.68% at March 31, 2012.
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2013 [Rs. in millions] |
31.03.2012 [Rs. in millions] |
|
Claims against the Bank not acknowledged as debts |
36373.051 |
29310.352 |
|
Liability for partly paid investments |
128.050 |
128.050 |
|
Liability on account of outstanding forward exchange contracts1 |
2838503.955 |
3560050.874 |
|
Guarantees given
on behalf of constituents |
|
|
|
a) In India |
717848.338 |
720946.196 |
|
b) Outside India |
226321.011 |
234068.666 |
|
Acceptances, endorsements and other obligations |
621180.725 |
568856.614 |
|
Currency swaps1 |
565474.647 |
616403.680 |
|
Interest rate swaps, currency options and interest rate futures1. |
2855937.706 |
3362012.187 |
|
Other items for which the Bank is contingently liable |
38125.663 |
62874.440 |
|
TOTAL
|
7899893.146 |
9154651.059 |
|
1. Represents notional amount. |
||
NEWS:
RBI FINES AXIS, ICICI, HDFC
ON KYC NORMS, SAYS NO MONEY LAUNDERING
JUNE
10, 2013
According to the notification posted on the Reserve Bank of India’s website,
“The Reserve Bank has imposed a monetary penalty on Axis Bank, HDFC Bank and
ICICI Bank for violating Reserve Bank of India instructions.”
The penalties are as follows: For Axis Bank – Rs 50.000 Millions, for HDFC
bank -Rs 45.000 Millions and for ICICI Bank -Rs 10.000 Millions. Recently
the apex bank had scrutinized these three banks books of accounts, internal
control, compliance systems and processes of their corporate offices and some
branches. This scrutiny comes after the Cobrapost released a video of alleged
money laundering.
The central bank found that though there was no prima facie evidence of
money laundering by these banks, they did fall short on a number of occasions
to comply with the regulatory requirements.
For instance, there was a violation of certain safeguards in respect of
arrangement of “at par” payment of cheques drawn by cooperative banks. These
banks also did not adhere to certain aspects of know your customer (KYC) norms
and anti money laundering (AML) guidelines. These banks violated the
regulatory requirement of obtaining PAN number of form 60/61 on various
occasions.
In fact for few NRO accounts, these banks did not even verify the source
of funds. These were a few parameters on which these three banks fell short of
meeting the regulatory requirements.
ICICI BANK FOR MORE BRANCH
EXPANSION
JUNE 25, 2013
India’s second biggest bank, ICICI Bank Limited, is looking for foreign expansion by opening branches in Australia, South Africa and Mauritius.
The largest private sector lender is also looking to open a full-fledged branch
in China, where it already has a representative office, managing director and
CEO, Chanda Kochhar said during the bank’s 19th annual general meeting in
Vadodara.
“Under the bank’s foreign expansion plans, we will open branches in Australia,
South Africa and Mauritius.
"We have sought Reserve Bank of India’s clearance and the same is
awaited,” said Kochhar addressing the shareholders in Vadodara on Monday.
“We already have a representative office in China, where we will open a
full-fledged branch,” she said.
As on March 31, ICICI Bank had the largest number of foreign branches, 10,
among private sector banks in India.
The bank also has three subsidiaries and eight representative offices located
in different countries, RBI data showed.
Commenting on the domestic branch network, Kochhar maintained bank will expand
its branch presence in the non-banked areas of the country.
“We will open 350 new branches in India.
"About 200 of these will be in non-banked areas.
"The pace of branch network expansion will be much faster over the next three years,” said managing director and chief executive officer Chanda Kochhar at its 19th annual general meeting in Vadodara.
She said they’d also applied to the Reserve Bank of India for permission to open branches in Australia, South Africa and Mauritius.
And, she said, they wished to upgrade the representative office in China to a full branch.
As on March 31, ICICI had 10 branches abroad (the largest among private sector
banks in India), three subsidiaries and eight representative offices in
different countries.
To a shareholder’s query on the status of the investigation into the money laundering charges made after the ‘sting’ operation by web portal Cobrapost, she said: “We did three-layered investigations. One was an internal inquiry, the second was done by Deloitte, an external agency we appointed, and the third by RBI.
"From these investigations we found there has been no instance of money
laundering in ICICI Bank.”
On the economic situation and power sector issues, she said exposure to the
latter was not a concern.
“Our exposure to the power sector is less than seven per cent of our total exposure, and over half of it is to companies already operational and generating cash flows,” she explained.
Adding: “While some of the projects, in the current environment, may face
certain delays in cash flows but in the country as a whole, there is huge
requirement of power.
"As each and every project starts operating and get their raw material,
these (would be) very good assets in the long run.”
On the rupee’s volatility, Kochhar said it would not hamper the bank’s plans to
raise 50 billion ($510 million) by selling bonds to institutional investors in
Japan.
“Even in the most volatile conditions, we have raised funds from the Chinese
markets.
"We always look for a window of opportunity, where liquidity is available
at the appropriate cost. We go ahead and raise those funds.”
A week before, ICICI had raised money in Chinese yuan and in the past year,
raised funds in both US and Singapore dollars and Swiss francs.
ICICI, the country’s largest bank in the private sector, plans more expansion
at home and abroad.
Elevate Kochhar to vice-chair: Shareholders
While shareholders of ICICI Bank showered praises on the management for
successfully withstanding critical economic situation and yet announce healthy
results, some demanded elevation for Chanda Kochhar to vice-chair of the bank.
Chairman Kamath, however, did not respond to the request nor did he deny the possibility of the elevation.
Lender promises Rs 50.000 Millions for Uttarakhand
ICICI Bank on Monday said every employee would contribute a day’s salary
towards a relief fund for those affected in the Uttarakhand floods.
“The bank will match that amount and the total fund will not be less than Rs
50.000 Millions (Rs 50.000 millions),” said Chanda Kochhar, managing director,
at the annual general meeting in Vadodara.
The AGM also observed a one-minute silence for those who lost their lives in
these floods.
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 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 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.60.34 |
|
|
1 |
Rs.90.79 |
|
Euro |
1 |
Rs.77.80 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
10 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
81 |
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.