MIRA INFORM REPORT

Report Date :

25.09.2014

IDENTIFICATION DETAILS

Name :	ICICI BANK LIMITED
Formerly Known As :	INDUSTRIAL CREDIT AND INVESTMENTS CORPORATION OF INDIA LIMITED
Registered Office :	Landmark, Race Course Circle, Alkapuri, Vadodara – 390 007, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	05.01.1994
Com. Reg. No.:	04-021012
Capital Investment / Paid-up Capital :	Rs.11550.446 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.
Line of Business :	Providing a wide range of banking and financial services including commercial banking and treasury operations.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Aaa (86)

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

Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Not Available
Comments :	Subject is a well-established and largest private sector bank having excellent track record. The rating reflects IBL’s status as the largest private sector bank and a systemically important institution, significant retail reach supported by widespread branch network, healthy capitalization levels and strong funding profile of the bank. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The bank can be considered good for 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.

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Unsecured long term bonds : AAA
Rating Explanation	Highest degree of safety and carry lowest credit risk.
Date	11.08.2014

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 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON CO-OPERATIVE [91-22-67574314]

LOCATIONS

Registered Office :	Landmark, Race Course Circle, Alkapuri, Vadodara – 390 007, Gujarat, India
Tel. No.:	91-265-2324318 / 2339923-27
Fax No.:	91-265-2339926
E-Mail :	info@icici.com jyotin.mehta@icicibank.com shanty.venkatesan@icicibank.com
Website :	http://www.icicibank.com
Head Office :	Zenith House, 3^rd Floor, Keshavrao Khade Marg, Mahalakshmi, Mumbai - 400 034, Maharashtra, India
Corporate Office :	ICICI Bank Towers, Bandra-Kurla Complex, Mumbai - 400 051, Maharashtra, India
Tel. No.:	91-22-26531414
Fax No.:	91-22-26531122
E-Mail :	jyotin.mehta@icicibank.com
Branch Office :	Located At: · Himachal Pradesh · Punjab · Haryana · Uttaranchal · Delhi · Rajasthan · Uttar Pradesh · Bihar · Assam · Madhya Pradesh · Gujarat · Jharkhand · West Bengal · Maharashtra · Chhattisgarh · Orissa · Andhra Pradesh · Goa · Karnataka · Tamilnadu · Pondicherry · Kerala

DIRECTORS

As on 30.06.2014

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 and Chief Executive Officer
Name :	Mr. Dileep Choksi
Designation :	Director
Name :	Mr. Homi Khusrokhan
Designation :	Director
Name :	Mr. Arvind Kumar
Designation :	Director
Name :	Ms. Swati Piramal
Designation :	Director
Name :	Mr. M. S. Ramachandran
Designation :	Director
Name :	Mr. Tushaar Shah
Designation :	Director
Name :	Mr. V. K. Sharma
Designation :	Director
Name :	Mr. V. Sridar
Designation :	Director
Name :	Mr. N. S. Kannan
Designation :	Executive Director and Chief Finance Officer
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
Name :	Mr. Sandeep Batra
Designation :	Group Compliance Officer and Company Secretary
Senior General Manager :
Name :	· Mr. Sudhir Dole · Mr. K. M. Jayarao · Mr. Rakesh Jha Chief Financial Officer · Mr. Maninder Juneja · Mr. Shilpa Kumar · Mr. Anita Pai · Mr. Kumar Ashish · Mr. Sanjay Chougule Head-Group Internal Audit · Mr. Sujit Ganguli · Mr. Ajay Gupta · Mr. Sriram H · Mr. Anil Kaul · Mr. Sanjeev Mantri · Mr. Ravi Narayanan · Mr. Amit Palta · Mr. Murali Ramakrishnan · Mr. P. Sanker Company Secretary · Mr. Supritha Shetty Group Compliance Officer · Mr. Saurabh Singh · Mr. G. Srinivas · Mr. T. K. Srirang · Mr. Rahul Vohra
Audit Committee:
Name:	Mr. Homi Khusrokhan, Chairman Mr. Dileep Choksi, Alternate Chairman Mr. M. S. Ramachandran Mr. V. Sridar
Board Governance, Remuneration and Nomination Committee:
Name:	Mr. K. V. Kamath, Chairman Mr. Homi Khusrokhan Mr. M. S. Ramachandran
Corporate Social Responsibility Committee:
Name :	Mr. M. S. Ramachandran, Chairman Mr. Arvind Kumar Mr. Tushaar Shah Ms. Chanda Kochhar
Credit Committee:
Name:	Mr. K.V. Kamath, Chairman Mr. Homi Khusrokhan Mr. M. S. Ramachandran Ms. Chanda Kochhar
Customer Service Committee:
Name:	Mr. M. S. Ramachandran Mr. V. Sridar Ms. Chanda Kochhar Mr. K. V. Kamath
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
Information Technology Strategy Committee:
Name:	Mr. Homi Khusrokhan, Chairman Mr. K. V. Kamath Mr. V. Sridar Ms. Chanda Kochhar
Stakeholders Relationship Committee:
Name:	Mr. Homi Khusrokhan, Chairman Mr. V. Sridar Mr. N. S. Kannan
Committee of Executive Directors:
Name:	Ms. Chanda Kochhar, Chairperson Mr. N. S. Kannan Mr. K. Ramkumar Mr. Rajiv Sabharwal

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	94465679	11.53
Financial Institutions / Banks	794436	0.10
Central Government / State Government(s)	475707	0.06
Insurance Companies	172201191	21.02
Foreign Institutional Investors	462719288	56.48
Any Others (Specify)	1339779	0.16
FIIs-DR	1118846	0.14
Foreign Bank	220933	0.03
Sub Total	731996080	89.34
(2) Non-Institutions
Bodies Corporate	26284567	3.21
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	46598975	5.69
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	6212938	0.76
Any Others (Specify)	8205999	1.00
Overseas Corporate Bodies	600	0.00
Foreign Bodies - D R	700121	0.09
Trusts	2062002	0.25
Directors & their Relatives & Friends	843460	0.10
Foreign Nationals	8668	0.00
Non Resident Indians	1834456	0.22
Clearing Members	1660078	0.20
Hindu Undivided Families	1067974	0.13
Foreign Corporate Bodies	28640	0.00
Sub Total	87302479	10.66
Total Public shareholding (B)	819298559	100.00
Total (A)+(B)	819298559	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	336713170	0.00
Sub Total	336713170	0.00
Total (A)+(B)+(C)	1156011729	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. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Deutsche Bank Trust Company Americas	336713170	29.13
2	Life Insurance Corporation of India	95969997	8.30
3	Dodge & Cox International Stock Fund	42074757	3.64
4	Europacific Growth Fund	31318399	2.71
5	Carmignac Gestion A/c Carmignac Patrimoine	18256935	1.58
6	Centaura Investments (Mauritius) Pte Limited	13809852	1.19
7	Aberdeen Global Indian Equity (Mauritius) Limited	12420000	1.07
	Total	550563110	47.63

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. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares
1	Deutsche Bank Trust Company Americas	336713170	29.13
2	Life Insurance Corporation of India	95969997	8.30
	Total	432683167	37.43

Details of Depository Receipts (DRs)

Sl. No.	Type of Outstanding DR (ADRs, GDRs, SDRs, etc.)	No. of Outstanding DRs	No. of Shares Underlying Outstanding DRs	Shares Underlying Outstanding DRs as % of Total No. of Shares
1	ADR	16,83,56,585	33,67,13,170	29.13
	Total	16,83,56,585	33,67,13,170	29.13

BUSINESS DETAILS

Line of Business :

Providing a wide range of banking and financial services including commercial banking and treasury operations.

GENERAL INFORMATION

No. of Employees :	Information denied by the management.
Bankers :	Reserve Bank of India

Banking Relations :	--
Statutory Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Address :	Express Towers, 6^th Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India
Subsidiaries:	· ICICI Bank UK PLC · ICICI Bank Canada · ICICI Bank Eurasia Limited Liability Company · ICICI Prudential Life Insurance Company Limited · ICICI Lombard General Insurance Company Limited · ICICI Prudential Asset Management Company Limited · 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 Limited · ICICI Prudential Pension Funds Management Company Limited.
Associates/joint ventures/other related entities:	· ICICI Equity Fund1 · ICICI Eco-net Internet and Technology Fund1 (up to December 31, 2013) · ICICI Emerging Sectors Fund1 (up to December 31, 2013) · ICICI Strategic Investments Fund1 · ICICI Kinfra Limited1 · FINO PayTech Limited · TCW/ICICI Investment Partners Limited (up to June 30, 2013) · I-Process Services (India) Private Limited · NIIT Institute of Finance, Banking and Insurance Training Limited · ICICI Venture Value Fund1 (up to September 30, 2013) · Comm Trade Services Limited · ICICI Foundation for Inclusive Growth · I-Ven Biotech Limited1 · Rainbow Fund (up to December 31, 2013) · ICICI Merchant Services Private Limited · Mewar Aanchalik Gramin Bank · India Infradebt Limited2.

CAPITAL STRUCTURE

AS ON 30.06.2014

Authorised Capital : Rs.17750.000 Millions.

Issued, Subscribed & Paid-up Capital : Rs.15068.464 Millions.

As on 31.03.2014

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
1153581715	Equity Shares	Rs.10/- each	Rs.11535.817 Millions
1405540	Add: Equity Shares	Rs.10/- each	Rs.14.055 Millions
154486	Less: Equity Shares	Rs.10/- each	Rs.1.545 Millions
	TOTAL		Rs.11548.327 Millions
266089	Add: Forfeited Equity Shares	Rs.10/- each	Rs.2.119 Million
	TOTAL		Rs.11550.446 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

PARTICULAR	31.03.2014	31.03.2013	31.03.2012
CAPITAL AND LIABILITIES
Capital	11550.446	11536.362	11527.683
Employees stock options outstanding	65.744	44.835	23.854
Reserves and Surplus	720517.086	655478.392	592500.885
Deposits	3319136.570	2926136.257	2554999.561
Borrowings	1547590.539	1453414.944	1401649.073
Other Liabilities and Provisions	347555.454	321336.021	329986.915
TOTAL CAPITAL AND LIABILITIES	5946415.839	5367946.811	4890687.971
ASSETS
Cash and Balances with Reserve Bank of India	218218.262	190527.309	204612.935
Balances with Banks and Money at Call and Short Notice	197077.695	223647.879	157680.199
Investments	1770218.164	1713935.993	1595600.430
Advances	3387026.492	2902494.351	2537276.579
Fixed Assets	46781.360	46470.587	46146.870
Other Assets	327093.866	290870.692	349370.958
TOTAL ASSETS	5946415.839	5367946.811	4890687.971

PROFIT & LOSS ACCOUNT

PARTICULAR	31.03.2014	31.03.2013	31.03.2012
INCOME
Interest Earned	441781.528	400755.969	335426.522
Other Income	104278.721	83457.012	75027.598
TOTAL INCOME	546060.249	484212.981	410454.120
EXPENDITURE
Interest Expended	277025.886	262091.848	228084.964
Operating Expenses	103088.614	90128.837	78504.433
Provision and contingencies	67840.979	48737.569	39212.151
TOTAL EXPENDITURE	447955.479	400958.254	345801.548
PROFIT AND LOSS
Net Profit for the Year	98104.770	83254.727	64652.572
Profit Brought Forward	99022.874	70542.323	50181.837
Total Profit / (Loss)	197127.644	153797.050	114834.409
APPROPRIATION / TRANSFERS
Transfer to Statutory Reserve	24530.000	20820.000	16170.000
Transfer to Reserve Fund	46.146	27.775	10.665
Transfer to Capital Reserve	760.000	330.000	380.000
Transfer to Investment Reserve Account	1270.000	0.000	0.000
Transfer to General Reserve	0.000	0.000	0.000
Transfer to Revenue and Other Reserves	0.000	0.000	3.154
Transfer to Special Reserve	9000.000	7600.000	6500.000
Dividend (including Corporate Dividend Tax for the Previous Year Paid During the Year)	(539.685)	2.491	4.284
Proposed Equity Share Dividend	26562.812	23072.271	19020.400
Proposed Preference Share Dividend	0.035	0.035	0.035
Corporate Dividend Tax	2312.451	2921.604	2203.548
Balance Carried Over to Balance Sheet	133185.885	99022.874	70542.323
TOTAL	197127.644	153797.050	114834.409
Earnings per share
Basic (Rs.)	84.99	72.20	56.11
Diluted (Rs.)	84.66	71.93	55.95

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	11527.683	11536.362	11550.446
Reserves & Surplus	592500.885	655478.392	655478.392
Net worth	604028.568	667014.754	667028.838
Borrowings	1401649.073	1453414.944	1547590.539
Total borrowings	1401649.073	1453414.944	1547590.539
Debt/Equity ratio	2.321	2.179	2.320

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Interest Earned	335426.522	400755.969	441781.528
		19.477	10.237

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Interest Earned	335426.522	400755.969	441781.528
Profit	64652.572	83254.727	98104.77
	19.27%	20.77%	22.21%

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF CURRENT MATURITIES OF LONG TERM DEBT: NOT AVAILABLE

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	Yes
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	--
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]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN 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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

BUSINESS OVERVIEW

ECONOMIC OUTLOOK

Fiscal 2014 was a challenging year for the Indian economy, with continued moderation in economic growth, persistent inflation, high interest rates and significant volatility in global and domestic financial markets. ICICI Bank calibrated its strategy to the environment, adopting a balanced approach to growth, profitability and risk management. They believe that India continues to have strong drivers for growth over the medium-to-long term, underpinned by its infrastructure and industrial investment potential and demographic advantage. They continue to focus on enhancing their capabilities to capitalise on the growth opportunities arising from the Indian economy and its international linkages. For a detailed discussion of economic developments in fiscal 2014, please refer “Management’s Discussion and Analysis”.

BUSINESS REVIEW

RETAIL BANKING

The preferences of Indian consumers are evolving rapidly with the increasing penetration of technology in the area of banking. New products, new channels and new service experiences are shaping the banking landscape of the future. ICICI Bank has always been a pioneer in the area of understanding customer needs and designing solutions in line with its philosophy of Khayaal Aapka.

The Bank continues its leadership in the area of technology to provide a superior customer experience. A new channel for banking has been introduced with the launch of the Bank’s Facebook app, ’Pockets from ICICI Bank’. This app allows customers to fulfil all banking needs while socialising with friends and relatives on Facebook. The Bank also upgraded its retail internet banking platform to enable a superior online experience. This platform allows users to personalise the home page so that all required information is visible with minimal clicks. Similarly, the Bank has taken a number of steps to empower customers at branches, including transaction kiosks and cash acceptance machines that enable them to undertake transactions on their own. The Bank has also scaled up the number of its 24x7 Touch Banking branches to 101 in 33 cities. Through Tab Banking, the Bank’s executives now assist customers in opening a bank account from the comfort of their homes and offices. The documentation required from customers is minimal since their executives use tablets to click photographs of the customers and also scan their documents. Tab Banking has generated high interest from prospective customers, demonstrating the success of this proposition. The Bank now plans to extend its journey of using tablets and digitisation to home loans and vehicle loans.

ICICI Bank has also brought various new products to Indian consumers. Many Indian consumers have apprehensions about security of online transactions. ICICI Bank, in partnership with Visa, has introduced Carbon, Asia’s first credit card powered by Visa CodeSure, making the card one of the safest for any usage, especially for nline shopping. This card brings unparalleled safety for online transactions by embedding an alpha-numeric LCD screen, a 12-button touch keypad and an in-built battery to generate dynamic one time passcodes. Various premium and feature-rich debit cards have also been introduced. The Bank also recognises the growing importance of electronic, chip-based and near-field communication (NFC) based payments and has institutionalised the first-ever inter-operable electronic toll collection solution in India on the Mumbai- Ahmedabad highway.

ICICI Bank has also worked towards making access to loans easier for customers. Customers can check their loan eligibility and print sanction letters instantly using the “Express Loans” programme. Prospective home buyers can view all housing projects approved by ICICI Bank on an interactive map. ICICI Bank customers can now also apply for multiple products in a single form without the need for multiple documentation, reducing processing delays.

The Bank has expanded its network to 3,753 branches and 11,315 ATMs. National Payments Corporation of India (NPCI) has awarded ICICI Bank with the ‘Best ATM Operational Excellence Award’ in the Private Sector- Foreign Bank category for the third consecutive year. ICICI Bank was also named the ‘Best Retail Bank in India’ by The Asian Banker. A number of the Bank’s initiatives have been recognised by many reputed forums such as Indian Banks Association (IBA), Celent, Institute of Development and Research in Banking Technology (IDRBT) and others. The Bank received awards for ‘Most Innovative Bank’ and ‘Most Innovative use of Multi-Channel Infrastructure’ at the Indian Banks Association’s BANCON Innovation Awards 2013.

All these initiatives have helped the Bank achieve robust growth in its retail business. The Bank’s mortgage loan and auto loan disbursements grew by 26.8% and 51.7%, respectively, in fiscal 2014. The Bank has also focused on growth in its business banking portfolio, which comprises lending to small businesses though the Bank’s extensive branch network. The Bank achieved healthy increase in the overall retail portfolio by 23.0% to Rs.1,320.11 billion. The Bank continues to see strong momentum in the acquisition of retail deposit customers and robust growth in the retail deposit base. The Bank’s savings account deposits grew by 15.7% in fiscal 2014, to Rs.991.33 billion.

Small and Medium Enterprises

Small and Medium Enterprises (SMEs) are an important constituent of India’s economy and have become a thrust area for future growth. A strong SME sector is fundamental to building a resilient and dynamic corporate sector.

At ICICI Bank, they offer a full suite of banking products and solutions to SMEs for meeting their business and growth requirements. Their experience of partnering with SMEs has enabled us to develop nontraditional techniques of assessing credit risk unique to them. They also offer supply chain financing solutions and small ticket funding to the channel partners of large corporates. They have set up dedicated desks in 318 branches catering to SMEs and have specialised teams for current accounts, trade finance, cash management services and doorstep banking. They have also tailored their internet banking platform to cater to their unique banking needs.

Fiscal 2014 was a challenging period for SMEs due to the moderation in economic activity and significant fluctuations in the currency markets. They focused on calibrated portfolio growth and reducing concentration levels within the portfolio. They maintained a cautious outlook on some sectors with enhanced monitoring of existing relationships where required.

ICICI Bank has always viewed the SME segment as integral to India’s growth and will continue to partner with SMEs while building a healthy portfolio.

WHOLESALE BANKING

The Wholesale Banking Group’s core strategy has been to serve their corporate customers by providing comprehensive and tailored financial solutions for doing business in India and key overseas geographies. The group analyses business and financial requirements of clients and services them 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 acts as a single point of contact for clients and services their requirements across businesses. The relationship team works closely with specific teams like commercial banking, loan syndication, project finance, structured finance and the markets group to develop suitable products that fulfill specific needs of clients.

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 through their mega branches combined with technology-enabled solutions have helped in growing their transaction banking business.

The Syndications Group is a leading player in the loan syndication market. It specialises in structuring and syndicating large loans. It acts as an arranger and underwriter for a variety of loans across corporate and project finance transactions. It is an active player for India-linked loans in both the primary and secondary loan distribution market. The diversified pool of clients enables us to align the unique requirements of clients with the varying requirements of investors.

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 successfully undertaken structured finance transactions in India, backed by the Bank’s extensive experience, underwriting capabilities, industry expertise and global presence. 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.

During fiscal 2014, the Wholesale Banking Group focused on proactive monitoring of the portfolio given the challenging economic environment, while continuing to grow its commercial and transaction banking business. Going forward, the Wholesale Banking Group will continue to offer comprehensive financial services across a spectrum of financial products to their clients and partner them while growing their portfolio with a focus on profitability and risk mitigation.

PROJECT FINANCE

The project finance environment has been challenging in recent years, with implementation delays and issues around access to raw material. These have impacted cash flow generation by projects and resulted in a significant slowdown in new investments. However, they expect to see improvement in the environment going forward.

In the power sector, the Government has modified the standard bid documents to make fuel a pass through for tariffs. The Government has approved setting up of a Coal Regulatory Authority which will make the sector competitive and increase private sector participation. Projects in regional and interregional transmission corridors are expected to be undertaken 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 2015 with new projects likely to be awarded. The National Highway Authority of India (NHAI) is expected to award road projects primarily through engineering, procurement and construction (EPC) contracts to improve liquidity in the sector. The government has taken measures like rescheduling of premium for stressed projects, easing of exit norms and re-working the Model Concession Agreement in response to the changed economic scenario in order to revive private sector investment. In the port sector, award of new projects has picked up pace which would result in new capacity addition. In the airport sector, six key airports currently managed by the Airports Authority of India are expected to be privatised.

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 and resulting in increase in prices. Significant additions to LNG import capacity have been announced with commissioning expected over the next three to four years. Their expertise in major sectors along with innovative structuring capabilities has enabled us to 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 specific growth drivers: 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, ICICI Bank’s International Banking Group seeks to partner with global corporations as they expand in India. They also seek to build stable and diversified international funding sources and strong syndication capabilities to support their corporate and investment banking business. 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 nine 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.

During fiscal 2014, the global economic environment was characterised by gradual recovery in advanced economies and volatility in emerging economies. In this environment, they continued to focus on managing the risks 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, technology initiatives and service offerings to meet the requirements of the widely dispersed NRI diaspora. The emphasis in fiscal 2014 was on further expanding access to remittance services through new partnerships and channels and delivering a superior customer experience.

RURAL AND INCLUSIVE BANKING

Rural India is complex and transforming rapidly with expansion in rural consumption, access to mobile telephony and social mobility among others. While agriculture continues to engage around half the country’s total workforce, the rural economy has grown to encompass both farm and non-farm sources of livelihood. The Bank’s vision is to emerge as a leading institution for enabling growth and inclusion in the rural economy. To accomplish its vision, the Bank’s strategy is to expand in the rural markets, leverage its strengths in technology and deliver relevant products and services to the rural and unbanked population through a multi-channel network.

A key pillar of their strategy is to provide branch banking access to the rural customers. In line with this philosophy, more than 75% of their new branches in fiscal 2014 were added in the rural and semi-urban areas, and 52% of the Bank’s overall branch network is now in these areas. 317 branches have been opened in unbanked villages in fiscal 2014. During fiscal 2014, the Bank launched “Branch on Wheels“, a mobile van based branch that aims at providing banking services to a cluster of remote unbanked villages. This initiative, a first of its kind by a private sector bank, has been launched in the three states of Maharashtra, Chattisgarh and Odisha. It offers all basic banking products and services including savings accounts, farmer loans, cash deposit/withdrawal, funds transfer/demand draft collections and an Automated Teller Machine (ATM).

As part of its endeavour to provide basic banking services to the unbanked, ICICI Bank offers holistic banking services through its Business Correspondent (BC) channel, including savings accounts, remittances, fixed and recurring deposits and credit. The Bank has opened 17.8 million basic saving bank deposit accounts at March 31, 2014, which is the highest among private sector banks. The Bank has reached out to over 15,500 villages through its branches and BC network. During fiscal 2014, the Bank continued to be a leading provider of Electronic Benefit Transfer (EBT) services which allows state Governments to transfer funds directly to the beneficiaries’ accounts thereby facilitating timely receipt of money by the beneficiaries and minimising leakages. The Bank has initiated EBT payment facilities in 72 districts across 13 states. As part of its urban financial inclusion initiatives, the Bank has processed about 5.0 million domestic migrant remittances till date. This service allows migrant workers to send money back to their families in a transparent and convenient manner. The Bank conducts village level financial literacy workshops called ‘Gram Samvad’ across the country for customer interactions and uses innovative and engaging methods like comic books and audio visual as media for promoting financial literacy.

key objective of the Bank’s strategy is to provide access to institutionalised credit to the rural population at their doorsteps through its relationship banking approach. The Bank provides a comprehensive range of loan products to farmers and customers in rural areas like Kisan Credit Cards (KCC), agri term loans, farm equipment loans, loans to Self Help Groups (SHG), commodity based financing to farmers and business credit for rural enterprises. The Bank has leveraged unique models to offer credit to different segments of the rural population. The Bank is also leveraging tablets and mobile applications to eliminate physical formats and capture data electronically at the farm gate. This has resulted in provision of doorstep services to the customer with faster turnaround time for credit delivery. The Bank has extended credit to over a million women through over 70,000 SHGs in 164 districts across seven states and is the fastest growing bank in the country in this segment. The Bank has doubled its overall rural customer base for loans to over 2.0 million in fiscal 2014.

MANAGEMENT’S DISCUSSION AND ANALYSIS

BUSINESS ENVIRONMENT

Global economic growth remained subdued during fiscal 2014, while global financial markets witnessed volatility in response to the commencement of withdrawal of quantitative easing by the US Federal Reserve. Growth in the Indian economy remained below 5.0% for the second consecutive year, along with subdued investment activity and consumer demand. Uncertainties regarding the global recovery, concerns over domestic growth and volatility in financial markets were the key features of the economic environment in fiscal 2014.

India’s gross domestic product (GDP) grew by 4.6% during the first nine months of fiscal 2014 compared to a growth of 4.5% in the corresponding period of fiscal 2013. Growth was moderate due to a slowdown in industry and services sectors. Growth in the industrial sector was 0.6% during the first nine months of fiscal 2014, similar to the corresponding period of fiscal 2013. The services sector grew by 6.7% during the first nine months of fiscal 2014, compared to 7.2% in the corresponding period of fiscal 2013. The agriculture sector saw an improvement in growth to 3.6% during the first nine months of fiscal 2014, compared to 1.4% in the corresponding period of fiscal 2013. Private consumption recorded a growth of 2.5% while investments, as measured by gross fixed capital formation, declined by 1.0% during the first nine months of fiscal 2014, compared to a growth of 6.2% in private consumption and a decline of 0.1% in investments during the first nine months of fiscal 2013.

Inflation, measured by the Wholesale Price Index (WPI), increased from 4.8% in April 2013 to 7.5% in November 2013, and then eased to 5.7% in March 2014. Average WPI inflation during fiscal 2014 was 5.9%, compared to 7.4% average inflation during fiscal 2013. Inflation eased due to a moderation in the manufactured products segment, where average inflation in fiscal 2014 decreased to 2.9% compared to 5.4% in fiscal 2013. Fuel inflation remained flat at about 10.0% in fiscal 2014. However, food inflation increased from an average of 9.9% in fiscal 2013 to 12.8% in fiscal 2014. Retail inflation, measured by the Consumer Price Index (CPI), remained elevated at above 9.0% levels during the early part of fiscal 2014 and increased to a high of 11.2% in November 2013 before easing to 8.3% in March 2014. CPI inflation largely followed the trend in food inflation. Core CPI inflation, excluding food and fuel, remained steady at around 8.0% through fiscal 2014.

Conduct of monetary policy during fiscal 2014 could be demarcated into three distinct phases. In the early part of fiscal 2014, considering the easing inflation levels, Reserve Bank of India (RBI) reduced the repo rate by 25 basis points from 7.50% to 7.25% in May 2013. In the second phase, following the US Federal Reserve indicating a likely withdrawal of its quantitative easing programme in May 2013, there was a considerable outflow of portfolio funds from emerging market economies. India saw a significant outflow of foreign portfolio investments, particularly debt funds, leading to a sharp depreciation in the rupee. The rupee depreciated by 17.8% against the US dollar between June-August 2013 and touched a low of Rs.68.4 per US dollar on August 28, 2013 as compared to Rs.56.5 per US dollar at end-May 2013. In response to these developments, RBI changed its monetary policy stance. On July 15, 2013, with a view to stabilise the exchange rate, RBI increased the Marginal Standing Facility (MSF) rate, which is the rate at which banks borrow funds, in excess of the specified threshold, overnight from RBI against government securities, by 200 basis points from 8.25% to 10.25% while keeping the repo rate unchanged. The RBI also fixed the borrowing limit for banks under the Liquidity Adjustment Facility (LAF) at Rs.750.00 billion. Effective July 24, 2013, RBI announced a further reduction in the borrowing limit under LAF to 0.5% of net demand and time liabilities. In addition, effective July 27, 2013, the minimum daily cash reserve ratio balance required to be maintained by banks was increased to 99.0% of the stipulated fortnightly requirement from 70.0% earlier. The immediate impact of these measures on the market was a sharp increase in wholesale deposit rates and yields on government securities. Considering the impact of these measures to stabilise the exchange rate, RBI allowed certain adjustments on the investment portfolio of banks. The measures included increasing the limit for holding government securities in the held-tomaturity (HTM) category to 24.5% of net demand and time liabilities as against the earlier requirement of 24.0%, allowing banks to transfer securities from the available-for-sale and held-for-trading categories to the held-to-maturity category up to 24.5% of demand and time liabilities as a one-time measure at prices prevailing prior to the announcement of the July 15, 2013 measures, and giving banks the option to amortise net depreciation on the available-for-sale and held-for-trading portfolio over the remaining period of fiscal 2014.

The third phase of monetary policy action was from September 2013 when monetary operations were gradually normalised while focus shifted to addressing the elevated inflation levels. Following stability in the currency markets, RBI gradually reduced the MSF rate in stages by 150 basis points from 10.25% to 8.75% during September-October 2013. At the same time, the repo rate was increased by 50 basis points in stages from 7.25% to 7.75% reflecting concerns over elevated inflation levels. With these changes, monetary operations were normalised and the 100 basis points gap between the two rates was re-instated by end-October 2013. Further, in January 2014, RBI increased the repo rate by another 25 basis points to 8.0%.

India’s external sector environment improved during fiscal 2014 following policy interventions as well as improvement in exports. The high current account deficit of 4.8% of GDP in fiscal 2013 significantly reduced to 2.2% during the first nine months of fiscal 2014. During fiscal 2014, imports declined by 8.1%, particularly due to policy curbs on gold imports. Correspondingly, exports grew by 4.0% during fiscal 2014, leading to a contraction in the trade deficit by 27.2% during the year. Capital inflows also improved towards the later part of fiscal 2014. With a view to attract US dollar inflows and provide support to the currency, in September 2013 RBI opened a swap facility for banks for incremental foreign currency non-resident (bank) (FCNR (B)) US dollar deposits at a fixed rate of 3.5% per annum. The incremental non-resident dollar deposits mobilised under the swap facility were permitted to be deducted from the adjusted net bank credit for computation of priority sector lending targets and also from net demand and time liabilities for maintenance of cash reserve ratio and statutory liquidity ratio. The foreign currency borrowing limits of banks were also enhanced and banks were allowed to borrow up to 100.0% of their unimpaired Tier I capital as against 50.0% earlier. The borrowings under this route could be swapped with RBI at a concessional rate of 100 basis points below the prevailing swap rate. The swap facility was available from September 10, 2013 until November 30, 2013 and attracted an inflow of US$ 34.3 billion in the form of FCNR (B) deposits and bank borrowings during the period. Overall, the rupee depreciated by 10.5% during fiscal 2014 from Rs.54.4 per US$ at end-March 2013 to Rs.60.1 per US$ at end-March 2014, including an appreciation of 9.7% during September 2013-March 2014.

Indian equity markets improved during fiscal 2014, though there were periods of high volatility during the year. The benchmark equity index, the BSE Sensex, increased by 18.8% during fiscal 2014, moving from 18,836 at March 31, 2013 to a low of 17,906 on August 21, 2013 and subsequently rising to 22,386 at March 31, 2014. As per the Securities and Exchange Board of India, foreign institutional investment (FII) flows were significantly lower in fiscal 2014 with net inflows of around US$ 9.07 billion compared to net inflows of US$ 27.58 billion during fiscal 2013. There were net inflows of US$ 13.69 billion in equity and net outflows of US$ 4.62 billion in debt markets during fiscal 2014. Foreign direct investments improved marginally to US$ 20.98 billion and external commercial borrowings to US$ 5.81 billion during the first nine months of fiscal 2014, compared to US$ 19.78 billion and US$ 4.47 billion, respectively, during the corresponding period of fiscal 2013.

Non-food credit growth remained subdued during fiscal 2014, with a growth of 14.5% year-on-year at March 21, 2014 compared to 13.9% at March 22, 2013. Based on sector-wise credit data available as of February 21, 2014, year-on-year growth in credit to industry was 13.2% and to the services sector was 17.1%. Credit to the infrastructure sector grew by 13.1% compared to 19.7% at February 22, 2013. Retail loan growth increased to 16.5% from 14.6%. Deposit growth was 14.6% year-on-year at March 21, 2014, compared to 14.2% growth at March 22, 2013. Demand deposit growth improved to 8.8% year-on-year at March 21, 2014, compared to 5.9% at March 22, 2013.

First year retail premium underwritten in the life insurance sector (on weighted received premium basis) was Rs.454.29 billion in fiscal 2014 as compared to Rs.470.19 billion in fiscal 2013. Gross premium of the non-life insurance sector (excluding specialised insurance institutions) grew by 12.7% to Rs.728.53 billion during fiscal 2014 from Rs.646.53 billion during fiscal 2013. The average assets under management of mutual funds increased by 10.8% from Rs.8,166.57 billion in March 2013 to Rs.9,045.49 billion in March 2014.

Banking regulation underwent several changes during fiscal 2014 with several more measures proposed to be implemented going forward. In the second quarter monetary policy review announced on October 29, 2013, RBI outlined five areas that would be the focus for developmental measures to be announced in the short to medium term. These include the following:

• Strengthening and clarifying the monetary policy framework. In this regard, the recommendations of the Urjit Patel Committee to Revise and Strengthen Monetary Policy Framework were considered and implementation was initiated during fiscal 2014. Key proposals include adopting the consumer price index (CPI) as the key inflation measure for monetary policy action, keeping the economy on a disinflationary glide path with a target of 8.0% CPI inflation by January 2015 and 6.0% by January 2016, transition to a bi-monthly monetary policy cycle, and progressive reduction in banking system access to overnight liquidity under the LAF and corresponding increase in access to liquidity through term repos.

• Strengthening the banking structure through entry of new banks, branch expansion, encouraging new varieties of banks, and clarifying an organisational framework for foreign banks. In this regard, two new banks were given in-principle licenses during fiscal 2014.

• Broadening and deepening financial markets and increasing their liquidity and resilience.

• Expanding access to finance to small and medium enterprises, the unorganised sector, the poor and the remote underserved areas. RBI appointed a Committee on Comprehensive Financial Services for Small Businesses and Low-Income Households which submitted its recommendations in March 2014 and has proposed, among other things, allowing setting up of specialised payments and wholesale banks, and a new framework for priority sector lending.

• Strengthening real and financial restructuring and debt recovery from corporates and improving the system’s ability to deal with distress.

Some important regulatory developments impacting the banking sector during fiscal 2014 were:

• In May 2013, RBI issued guidelines on restructuring of advances. As per the guidelines, loans that are restructured (other than due to delay in project completion up to a specified period in the infrastructure sector and non-infrastructure sector) from April 1, 2015 onwards would be classified as non-performing. General provision on standard accounts restructured after June 1, 2013 was increased to 5.0%. The general provision required on standard accounts restructured prior to that date has been increased to 3.5% from March 31, 2014, and would further increase to 4.25% from March 31, 2015 and 5.0% from March 31, 2016;

• In June 2013, prudential norms pertaining to risk weights, provisioning and loan-to-value ratio for individual housing loans were revised. Accordingly, individual housing loans of up to Rs.7.5 million now attract risk weight of 50.0% with standard asset provisioning of 0.4%. For individual housing loans of above Rs.7.5 million, the loan-to-value ratio was set at 75.0% and risk weight was lowered from 125.0% to 75.0%;

• A new category of commercial real estate referred to as commercial real estate - residential housing was created within the commercial real estate category. Commercial real estate - residential housing attracts risk weight of 75.0% and standard asset provisioning of 0.75%. Commercial real estate excluding residential housing has risk weight of 100.0% and standard asset provisioning of 1.0%;

• In August 2013, RBI released a discussion paper on the structure of the banking system in India. The paper envisages changes in the structure of the banking system with a view to address specific issues such as enhancing competition, financing higher growth, providing specialised services, and expanding financial inclusion. The paper proposes to allow different types of banks along with differentiated licensing for niche services. It also proposes to have continuous licensing for entry of new banks as against the current system of block licensing. The paper also favors migration from the current bank-led universal banking model to a financial holding company structure;

• In the first half of fiscal 2014, RBI announced measures with regard to gold imports and financing of gold during the six months ended September 30, 2013. RBI restricted banks’ import of gold on consignment basis to only meet the needs of exporters of gold jewellery. Further, import of gold under all categories was mandated to be only on 100.0% cash margin basis. Advances against the security of gold coins per customer were restricted to gold coins weighing up to 50 grams;

• In October 2013, RBI liberalised the branch authorisation policy, doing away with the requirement of approvals to open branches in metropolitan regions. However, the total number of branches opened in Tier 1 centers during a year cannot exceed the total number of branches opened in Tier 2 to Tier 6 centers during a year. It was also specified that at least 25.0% of total new branches opened in a year should be in unbanked rural Tier 5 and Tier 6 centers;

• In November 2013, RBI decided to include incremental credit made after November 13, 2013, including export credit, to medium enterprises as part of priority sector advances. The facility was available up to March 31, 2014;

• In December 2013, RBI mandated banks to create deferred tax liability, or DTL, on Special Reserve, with the DTL up to March 31, 2013 permitted to be directly adjusted through reserves and DTL from the financial year ending March 31, 2014 onwards to be charged through the profit and loss account;

• In December 2013, RBI issued a draft framework on capital surcharges for domestic systemically important banks (D-SIBs). The higher capital requirements applicable to D-SIBs would be implemented in a phased manner from April 2016 to April 2019. D-SIBs would be required to have additional Common Equity Tier 1 capital ranging from 0.2% to 0.8 % of risk weighted assets;

In December 2013, RBI issued draft guidelines on implementation of counter-cyclical capital buffer (CCCB). According to the guidelines, the CCCB would range from 0% to 2.5% of risk weighted assets of the bank. The variation in the credit-to-GDP ratio from its long-term trend would be a key parameter for identifying business cycles

• In December 2013, RBI issued updated guidelines on stress testing. As per the guidelines, banks would have to carry out stress tests for credit risk and market risk to assess their ability to withstand shocks. Banks should be classified into three categories based on size of risk weighted assets. Complex and severe stress testing would be carried out by banks falling under Group A with risk weighted assets of more than Rs.2,000 billion

• In January 2014, RBI issued a Framework for Revitalising Distressed Assets in the Economy. The framework outlines an action plan for early identification of problem cases, timely restructuring of accounts which are considered to be viable, and taking prompt steps by banks for recovery or sale of unviable accounts. Accounts have to be categorised into ‘special mention accounts’ based on certain criteria. Formation of Joint Lenders’ Forum (JLF) would be mandatory which would formulate a corrective action plan. In case the JLF fails to agree on an action plan, it would result in accelerated provisioning. An independent evaluation of large value restructuring with a focus on viability and fair sharing of gains and losses between promoters and creditors have been mandated. The framework is effective from April 1, 2014

• In January 2014, RBI introduced incremental provisioning and capital requirements for banks’ exposure to entities with unhedged foreign currency exposure. Banks are required to make incremental provisioning (over and above standard asset provisioning) that would range between 0-80 basis points based on the likely loss due to exchange rate movement as a percentage of earnings before interest and depreciation (EBID). An additional risk weight of 25% would be applicable if the expected loss exceeds 75% of EBID, while for losses less than 75% there is no additional capital requirement. This guideline is effective from April 1, 2014

• In February 2014, RBI allowed banks to utilise up to 33% of counter-cyclical provisioning buffer/ floating provisions held by them as on March 31, 2013, for making specific provisions for non-performing assets. This would be over and above the utilisation for the purpose of making accelerated/additional provisions as proposed in the framework for Revitalising Distressed Assets in the Economy

• In February 2014, RBI issued guidelines indicating limits on intra-group transactions and exposures for banks’ transactions and exposures to the entities belonging to the bank’s own group. RBI has prescribed a single group entity exposure limit of 5.0% of paid-up capital and reserves for non-financial companies and 10.0% in case of regulated financial entities. Aggregate group exposure cannot exceed 20.0% of paid up capital and reserves • In March 2014, RBI released a notification amending the Basel III implementation schedule. The introduction of capital conservation buffer (CCB) was deferred by a year to March 31, 2016, and full implementation of Basel III capital regulations would be by March 31, 2019 from the earlier schedule of March 31, 2018. Additional Tier-1 (AT1) capital instruments issued before March 31, 2019 will have two specified triggers: 1) a lower pre-specified trigger at Common Equity Tier 1 (CET1) of 5.5% of risk weighted assets will apply before March 31, 2019; 2) trigger would be raised to CET1 of 6.125% of risk weighted assets (RWA) on or after March 31, 2019. Going forward, banks may issue AT1 capital instruments with conversion / permanent write-down features only. Similarly, with regard to write-off feature at point of non-viability (PONV) trigger, all non-equity capital instruments will have permanent write-off feature only.

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. 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.

CONTINGENT LIABILITIES:

Particulars	31.03.2014 [Rs. in millions]	31.03.2013 [Rs. in millions]
Claims against the Bank not acknowledged as debts	42236.215	36373.051
Liability for partly paid investments	65.787	128.050
Liability on account of outstanding forward exchange contracts1	2691373.680	2838503.955
Guarantees given on behalf of constituents
a) In India	759132.326	717848.338
b) Outside India	262927.479	226321.011
Acceptances, endorsements and other obligations	505542.096	621180.725
Currency swaps1	594394.058	565474.647
Interest rate swaps, currency options and interest rate futures1.	2919036.799	2855937.706
Other items for which the Bank is contingently liable	39596.011	38125.663
TOTAL	7814304.451	7899893.146

UNCONSOLIDATED FINANCIAL RESULTS

(Rs. In Millions)

Particulars	Three months ended 30.06.2014 (Audited)
Interest Earned/Net Income from sales/services	117669.000
Interest / discount on Advances / bills	83921.88
Income on Investments	29771.900
Interest on Balances with RBI & other inter bank funds	492.77
Others	3482.600
Other Income	28498.11
Total Income	146167.100
Interest Expended	72750.100
Operating Expenses1	28249.800
Employee Cost	12468.600
Other operating expenses	15781.200
Total Expenditure for Banks	100999.900
Operating Profit Before Provisions and Contingencies	45167.200
Provisions (other than tax) and Contingencies	7260.800
Exceptional Items	0.000
Profit (+)/ Loss (-) from Ordinary Activities before Tax	37906.400
Tax	11353.400
Current Period Tax	11648.500
Deferred Tax adjustment	(295.100)
Net Profit (+)/ Loss (-) from Ordinary Activities after Tax	26553.000
Extraordinary Items	0.000
Net profit /Loss for the period	26553.000
Paid up equity share capital (face value Rs. 10/-each)	11562.200
Reserves excluding revolution reserves	747354.77
A. Analytic ratios
1. Public Shareholding
Percentage of shares held by government of India	0.04
Capital adequacy ratio	17.00%
Earning per shares
Basic EPS before and after extraordinary items, net of tax expenses (not annualized for three months)	22.98
Diluted EPS before and after extraordinary items, net of tax expenses (not annualized for three months)	22.80

NPA Ratio
Gross non-performing advances (net of write -off)	1084330
Net non-performing advances	34285.200
% of gross non-performing advance (net of write-off) to gross advances	3.05%
% of net non-performing advance	0.99%
% of net non-performing advance to net advances	1.83%
Return on assets (annulaised)
1. Public Shareholding
- Number of shares	1156011729
- Percentage of shareholding	100

(Rs. In Millions)

PARTICULAR	30.06.2014
CAPITAL AND LIABILITIES
Capital	11562.200
Employees stock options outstanding	69.000
Reserves and Surplus	747354.700
Deposits	3357674.000
Borrowings	1459461.100
Other Liabilities and Provisions	307425.400
	5883546.400
TOTAL CAPITAL AND LIABILITIES
ASSETS
Cash and Balances with Reserve Bank of India	202557.200
Balances with Banks and Money at Call and Short Notice	219448.500
Investments	1701531.100
Advances	3470669.700
Fixed Assets	46705.700
Other Assets	242634.200
TOTAL ASSETS	5883546.400

PARTICULAR	30.06.2014
Total Income	200977.600
Net Profit	28320.100
Earnings per shares
Basic EPS (not annualized for three months)	24.51
Diluted EPS (not annualized for three months)	24.29

UNCONSOLIDATED SEGMENT RESULTS OF ICICI BANK LIMITED

(Rs. In Millions)

Particulars	Three months ended 30.06.2014 (Audited)
Segment revenue
Retail Banking	76737.400
Wholesale Banking	81096.400
Treasury	105420.500
Other Banking	4169.800
Total Segment revenue	267424.100
Less: Inter segment revenue	121257.000
Income from operations	146167.100
Segment Results
Retail Banking	4634.200
Wholesale Banking	15738.800
Treasury	16069.600
Other Banking	1463.800
Total Segment Results	37906.400
Less: Inter segment revenue	--
Unallocated expenses	--
Profit before tax	37906.400
Capital Employed (segment assets – segment liabilities)
Retail Banking	(1413743.900)
Wholesale Banking	1463948.400
Treasury	669211.300
Other Banking	6813.100
Unallocated	32757.000
Total	758985.900

NOTE:

1The above financial results have been approved by the Board of Directors at its meeting held on July 31, 2014.

The financial statements have been prepared in accordance with Accounting Standard (AS) 25 on 'Interim Financial Reporting'.

Other income includes foreign exchange gain of Rs. 1030.900 millions and Rs. 2222.500 millions on repatriation of retained earnings from the overseas branches for the three months ended June 30, 2014 and for three months ended and year ended March 31, 2014.

The Bank creates Special Reserve through appropriation of profits, in order to avail tax deduction as per Section 36(1)(viii) of the Income Tax Act, 1961. The Reserve Bank of India (RBI), through its circular dated December 20, 2013, had advised banks to create deferred tax liability (DTL) on the amount outstanding in Special Reserve, as a matter of prudence. In accordance with RBI guidelines, during the year ended March 31, 2014 the Bank created DTL of Rs. 14192.300 millions on Special Reserve outstanding at March 31, 2013, by reducing the reserves. Further, DTL of Rs. 945.300 millions has been created for the three months ended June 30, 2014 on the estimated amount to be transferred to Special Reserve (June 30, 2013: Nil) and DTL of Rs. 892.800 millions and Rs. 3042.600 millions was created for the three months and year ended March 31, 2014 respectively on the amount transferred to Special Reserve. Accordingly, the tax expense for the three months ended June 30, 2014 is higher by Rs. 945.300 millions (June 30, 2013: Nil) and for the three months and year ended March 31, 2014 the tax expense is higher by Rs. 892.800 millions and Rs. 3042.600 millions respectively.

During the three months ended June 30, 2014, the Bank has allotted 1,178,960 equity shares of Rs. 10/- each pursuant to exercise of employee stock options.

Previous period/year figures have been re-grouped/re-classified where necessary to conform to current period classification.

The above unconsolidated financial results for the three months June 30, 2014 are audited by the statutory auditors, B S R & Co. LLP, Chartered Accountants. The unconsolidated financial results for the three months ended June 30, 2013 and for the three months and year ended March 31, 2014 have been audited by another firm of chartered accountants.

The amounts for three months ended March 31, 2014 are balancing amounts between the amounts as per the audited accounts for the year ended March 31, 2014 and nine months ended December 31, 2013.

Rs. 10.000 million = Rs. 10.0 millions.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

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.61.03
UK Pound	1	Rs.99.99
Euro	1	Rs.78.37

INFORMATION DETAILS

Information Gathered by :	JML
Analysis Done by :	KAR
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	10
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	10
--PROFITABILIRY	1~10	10
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	10
--CREDIT LINES	1~10	10
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		86

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	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.