MIRA INFORM REPORT
|
Report Date : |
03.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
ICICI BANK LIMITED |
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|
|
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Formerly Known
As : |
ICICI BANKING CORPORATION LIMITED ICICI LIMITED |
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Registered
Office : |
Landmark, Race Course Circle,
Alkapuri, Vadodara-390007, Gujarat |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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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
Commercial Banking and Treasury Operations. |
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No. of Employees
: |
33321 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (73) |
|
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 |
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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 : |
Exist |
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Comments : |
Subject is a well established and reputed bank in private sector having
an excellent track record. It is termed to be the second largest bank in The bank can be considered excellent 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
AAA [Unsecured redeemable bonds] |
|
Rating Explanation |
Highest degree of safety and highest credit risk. |
|
Date |
February 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.
LOCATIONS
|
Registered Office : |
Landmark, Race Course Circle,
Alkapuri, Vadodara-390007, Gujarat, India |
|
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-400034, Maharashtra, India |
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Corporate Office : |
ICICI Bank Towers, Bandra-Kurla Complex, Mumbai-400051, Maharashtra,
India |
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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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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 |
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Qualification: |
B.E. (Mech.) (PGDBA) |
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Date of Appointment : |
01.05.1996 |
|
Previous
Employment: |
Bakrie Group, |
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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 : |
Mr. Homi R.
Khusrokhan |
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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 : |
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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 |
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Name : |
Mr. Arvind Kumar |
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Designation : |
Director |
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Name : |
Ms. Swati Piramal |
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Designation : |
Director |
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Name : |
Mr. Dileep Choksi |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Vijay
Chandok |
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Designation : |
President |
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Name : |
Zarin Daruwala |
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Designation : |
President |
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Name : |
Mr. Sandeep
Batra |
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Designation : |
Group Compliance Officer & Company Secretary |
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Senior General Manager : |
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 Palta Mr. Sanker
Parameswaran Mr. Murali
Ramakrishnan Supritha Shetty Mr. Saurabh
Singh Mr. G. Srinivas Mr. Sriram H Mr. T. K.
Srirang Mr. Rahul Vohra |
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Audit Committee : |
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 : |
Mr. K. V.
Kamath, Chairman Mr. Homi
Khusrokhan Mr. M. S. Ramachandran |
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Corporate Social Responsibility Committee : |
Mr. M. S.
Ramachandran, Chairman Mr. Arvind Kumar 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. 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 |
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|
100739644 |
12.33 |
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|
1117526 |
0.14 |
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|
71934 |
0.01 |
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|
175270896 |
21.45 |
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|
437407809 |
53.54 |
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|
1460426 |
0.18 |
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|
1239393 |
0.15 |
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|
221033 |
0.03 |
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|
716068235 |
87.65 |
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|
34470358 |
4.22 |
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|
51969923 |
6.36 |
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|
7225863 |
0.88 |
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|
7259574 |
0.89 |
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|
600 |
0.00 |
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|
49140 |
0.01 |
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|
704603 |
0.09 |
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|
1025153 |
0.13 |
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|
928103 |
0.11 |
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|
14596 |
0.00 |
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|
1957799 |
0.24 |
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|
1442150 |
0.18 |
|
|
1137430 |
0.14 |
|
|
100925718 |
12.35 |
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Total Public shareholding (B) |
816993953 |
100.00 |
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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 |
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|
336587762 |
0.00 |
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|
336587762 |
0.00 |
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Total (A)+(B)+(C) |
1153581715 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged
in Providing a wide range of Banking and Financial Services including
Commercial Banking and Treasury Operations. |
GENERAL INFORMATION
|
No. of Employees : |
33321 (Approximately) |
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Bankers : |
Reserve Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S.R. Batliboi
and Company Chartered Accountants |
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Address : |
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Subsidiaries : |
1. Entities consolidated as per Accounting Standard (AS) 21 on
‘Consolidated Financial Statements’. |
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Associates/ Joint Ventures/ Other Related Entities : |
2. This entity
was incorporated and identified as a related party during the three months
ended December 31, 2012. |
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Domestic Subsidiaries : |
1. Subsidiary of
ICICI Prudential Life Insurance Company Limited |
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International Subsidiaries : |
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.3.500 Millions |
|
|
TOTAL
|
|
Rs.14253.500
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1152714442 |
Equity Shares |
Rs.10/- each
|
Rs.11527.144
Millions |
|
867273 |
Equity Shares |
Rs.10/- each
|
Rs.8.673
Millions |
|
|
TOTAL |
|
Rs.11535.817 Millions |
|
|
Less: Call Unpaid |
|
Rs.0.225
Million |
|
1160311 |
Add: Equity Shares Forfeited |
Rs.10/- each
|
Rs.0.770
Million |
|
|
TOTAL |
|
Rs.11536.362 Millions |
NOTE:
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 |
|
|
|
|
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|
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 |
|
Other Liabilities and Provisions |
321336.021 |
329986.915 |
159863.467 |
|
|
|
|
|
|
TOTAL CAPITAL
AND LIABILITIES |
5367946.811 |
4890687.971 |
4062336.688 |
|
|
|
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|
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 Revenue and Other Reserves |
0.000 |
3.154 |
0.000 |
|
Transfer to General Reserve |
0.000 |
0.000 |
2.584 |
|
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
|
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 |
Yes |
|
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 |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
HIGH COURT OF
GUJARAT |
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CIVIL APPLICATION No. 216 of2008 In O.J.APPEAL/ 141/ 2008 (PENDING) |
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Status :
PENDING (Converted from :
ST/2060/2008) CCIN
No : 001073200800216 Last Listing Date: 25/06/2010 Coram: HONOURABLE THE CHIEF JUSTICE MR.
S.J.MUKHOPADHAYA HONOURABLE MR.JUSTICE K.M.THAKER |
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S.NO. |
Name of the
Petitioner |
Advocate On
Record |
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|
1 |
TEXTILE LABOUR ASSOCIATION |
MR. DS VASAVADA for: Applicant(s) |
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S.NO. |
Name of the
Respondant |
Advocate On
Record |
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1 10 |
O L OF RAIPUR
MANUFACTURING COMPANY LIMITED (IN LIQN.) |
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Presented On : 16/06/2008 Registered
On : 16/06/2008 Bench Category : SINGLE BENCH District : AHMEDABAD Case Originated From: THROUGH ADVOCATE Listed : 2 times Stage Name : BOARD NO. I-A
ACT
Companies Act, 1956 Office Details |
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S. No |
Filing Date |
Document Name |
Advocate Name |
Court Fee on
Document |
Document Details |
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1 |
16/06/2008 |
APPLICATION |
MR DS VASAVADA ADVOCATE |
20 |
MR DS VASAVADA:1 |
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Linked Matters
Court
Proceedings |
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S. No. |
Notified Date |
Court Code |
Board Sr. No. |
Stage |
Action |
Coram |
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1. |
25/06/2010 |
1 |
- |
BOARD NO. I-A |
NEXT DATE |
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CHARGES:
Amount in Rupees
|
ENTITY |
COMPETENT
AUTHORITY |
REGULATORY
CHARGES |
REGULATORY
ACTIONS/ 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.30,00,000 |
|
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.1,00,000 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.15,00,000 |
|
ICICI BANK LIMITED |
RBI |
DID NOT ADHERE TO ANTI
MONEY LAUNDERING (AML) GUIDELINES |
IMPOSED PENALTY
RS.5,00,000 |
|
ICICI BANK LIMITED |
SEBI |
OPENED VARIOUS DEMAT
ACCOUNTS SHARING COMMON ADDRESSES |
DIRECTED NSDL TO
CONDUCT INSPECTION |
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 (ICICI
Bank or the Bank), 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. ICICI Bank 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.
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 our 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 customised 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 fulfil 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 customised 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 corporates. They have set up
dedicated desks in 364 branches specializing in SME banking. They have also
re-organised 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 corporates 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 customised 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 recognised
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 specialises 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 recognising 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 corporates. 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 fertiliser 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 characterised 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 corporates 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, organised 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 customised,
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 customised 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
annualised 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.
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 securitised 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.
MANAGEMENT’S
DISCUSSION and ANALYSIS
- Yield on average interest-earning investments
increased from 7.24% in fiscal 2012 to 7.73% in fiscal 2013. The yield on
Statutory Liquidity Ratio (SLR) securities increased from 7.34% in fiscal
2012 to 7.80% in fiscal 2013 primarily due to investments in longer
duration SLR securities at higher yields and maturities of low yielding
securities. The yield on average interest-earning non-SLR investments
increased from 7.10% in fiscal 2012 to 7.62% in fiscal 2013.
- Interest income also includes interest on
income tax refund of Rs. 2.58 billion in fiscal 2013 compared to Rs. 0.80
billion in fiscal 2012. The receipt, amount and timing of such income
depends on the nature and timing of determinations by tax authorities and
is not consistent or predictable.
- During fiscal 2013, the impact on interest
income of losses on securitised pools of assets (including credit losses
on existing pools) was Rs. 0.28 billion compared to Rs. 2.02 billion in
fiscal 2012.
- RBI reduced the CRR by 200 basis points in
phases during fiscal 2012 and fiscal 2013. CRR was 6.00% at September 30,
2011, 4.75% at March 31, 2012 and 4.00% at March 31, 2013. As CRR balances
do not earn any interest income, the reduction had a positive impact on
the yield on interest-earning assets during fiscal 2013.
The cost of funds increased from 6.33% in fiscal
2012 to 6.43% in fiscal 2013 primarily due to the following factors:
- The cost of deposits increased from 6.12% in
fiscal 2012 to 6.38% in fiscal 2013. The cost of average term deposits
increased by 26 basis points from 8.21% in fiscal 2012 to 8.47% in fiscal
2013, reflecting the full impact of the systemic increase in deposit rates
in fiscal 2012. This was partly offset by decrease in the cost of
borrowings from 6.71% in fiscal 2012 to 6.54% in fiscal 2013.
Net interest margin
of overseas branches improved from 1.23% for fiscal 2012 to 1.34% for fiscal
2013 primarily due to increase in yield on advances. Yield on overseas advances
increased primarily due to new disbursements at higher interest rates. Further,
during fiscal 2012, there were repayments and prepayments of low yielding
loans. The full impact of the reduction in low yielding loans was reflected
during fiscal 2013. The increase in yield on advances was offset, in part, by
the impact of higher liquidity maintained in the international operations
during the year.
The reduction of
CRR by 75 basis points to 4.00% and reduction in repo rate by 100 basis points
to 7.50% by RBI during fiscal 2013, indicates a reversal in policy stance.
While the interest rates in the system are believed to have peaked, the extent
and timing of decline in interest rates will depend on systemic liquidity, the
future movement of inflation as well as on the evolving fiscal situation.
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 |
12.050 |
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 |
720746.196 |
|
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 |
35125.663 |
62874.440 |
|
TOTAL
|
7896777.146 |
9154451.059 |
PRESS RELEASE:
ICICI Bank now offers the Money2India.com Mobile
Application
May 9, 2013
Mumbai: ICICI Bank Limited, India’s largest private
sector bank, now offers the “Money2India Mobile Application” across popular
smart phones to help Non-Resident Indians (“NRIs”) track their money transfers
to India – anytime, anywhere.
This application enables the registered
users of ICICI Bank’s money transfer tracking service - Money2India
(www.money2india.com), who have been tracking money transfers via desktops and
laptops, to do the same through their smart phones. This secure application can
be downloaded from the iOS App Store for iPhones and iPads, Android Marketplace
and Windows 8 Store across five countries namely the US, Canada, UK, Singapore
and Hong Kong.
An ICICI Bank spokesperson said, “The Bank
has been offering customer-centric and innovative solutions to NRIs. With the
Money2India Mobile Application now available across popular platforms for smart
phones, the Bank aims at providing the users of Money2India.com unprecedented
ease and convenience of use so that they can now easily track exchange rates,
status of their money transfer requests and place new requests for tracking
from their mobile phones.”
ICICI Bank has also launched a Facebook page
to stay socially connected with NRIs worldwide. NRIs can 'Like' the ICICI Bank
NRI Service Facebook page to get information on NRI-specific products and
services, interesting snapshots of India and also participate in online events.
Money2India (www.money2india.com) is a
popular online money transfer tracking service offered to NRIs by ICICI Bank,
for over a decade. With over a million registered user base, it is a preferred
online service for tracking money transfers to India with round the clock
customer service availability. To use this service, a user needs to complete a
simple one-time online registration at Money2India.com and can avail the online
service for tracking money transfers from any bank in 8 countries namely USA,
Canada, UK, Sweden, Switzerland, Singapore, Hong Kong and UAE to any account
with over 100 banks in India.
About ICICI Bank Limited: ICICI Bank
Limited (NYSE:IBN) is India's largest private sector bank and the second
largest bank in the country, with consolidated total assets of US $ 124 billion
at March 31, 2013. ICICI Bank’s subsidiaries include India’s leading private
sector insurance companies and among its largest securities brokerage firms,
mutual funds and private equity firms. ICICI Bank’s presence currently spans 19
countries, including India
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.56.50 |
|
|
1 |
Rs.86.00 |
|
Euro |
1 |
Rs.73.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
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 |
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 |
|
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.