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The information in this prospectus supplement is not complete and may be changed. This prospectus supplement is not an offer to sell securities and we are not soliciting offers to buy these securities in any jurisdiction where the offer or sale is not permitted. |
Per ADS | Total | |||||||
Initial Price to Public | US$ | US$ | ||||||
Underwriting Discounts and Commissions | US$ | US$ | ||||||
Proceeds to us, before Expenses | US$ | US$ |
Goldman Sachs International | Merrill Lynch International |
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• | focus on quality growth opportunities by: |
• | maintaining and enhancing our strong retail franchise; | |
• | maintaining and enhancing our strong corporate franchise; | |
• | building an international presence; | |
• | building a rural banking franchise; and | |
• | strengthening our insurance and asset management businesses; |
• | emphasize conservative risk management practices and enhance asset quality; | |
• | use technology for competitive advantage; and | |
• | attract and retain talented professionals. |
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ADSs offered | ADSs representing equity shares, constituting approximately % of our issued and outstanding equity shares upon completion of both the Indian public offering and this ADS offering (assuming no exercise of the underwriters over-allotment option in either offering). This ADS offering is conditional upon the completion of the Indian public offering described below, which condition may be waived by mutual agreement of the underwriters and ourselves, provided that all relevant Indian regulations are complied with. The Indian public offering is subject to customary conditions and there is no assurance that the Indian public offering will close. | |
The number of ADSs to be sold is expected to equal the number that will result in gross proceeds of approximately US$2.14 billion (or US$2.46 billion assuming full exercise of the underwriters’ over-allotment option), assuming a public offering price determined by reference to the prevailing market price and market conditions at the time of pricing. | ||
Over-allotment option granted by us | We have granted the underwriters an option exercisable within 30 days from the date of this prospectus to purchase up to an aggregate of an additional ADSs, representing an additional equity shares, at the initial price to the public, less the underwriting discount. | |
The ADSs | Each offered ADS represents two equity shares of par value Rs. 10 per share. The offered ADSs are evidenced by American Depositary Receipts. | |
ADSs to be outstanding after this offering | (assuming no exercise of the underwriters over-allotment option to purchase additional ADSs). | |
Equity shares to be outstanding after this offering | (assuming no exercise of the underwriters over-allotment option in either the Indian public offering or the ADS offering). | |
Offering price | The offered ADSs are being offered at a price of $ per ADS. | |
Depositary | Deutsche Bank Trust Company Americas. | |
Use of proceeds | We intend to use the net proceeds of this offering for future asset growth and compliance with regulatory requirements. The objects of the offering are to augment our capital base to meet the capital requirements arising out of growth in our assets, primarily our loan and investment portfolio due to the growth of the Indian economy, compliance with regulatory requirements and for other general corporate purposes including meeting the expenses of the ADS offering. | |
Listing | We are listing the offered ADSs on the New York Stock Exchange. Our outstanding equity shares are principally traded in India on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. |
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New York Stock Exchange symbol for ADSs | IBN | |
Dividends | The declaration, amount and payment of dividends are subject to the recommendation of our board of directors and the approval of our shareholders. Under Indian regulations currently in force, the declaration of dividends by banks is subject to certain additional conditions. If we comply with such conditions, we are allowed to declare a dividend but only up to a certain percentage of our profits. For any dividends beyond such percentage, we are required to obtain permission from the Reserve Bank of India. Holders of equity shares and ADSs will be entitled to dividends paid, if any. For fiscal 2005, we paid a dividend, excluding dividend tax, of Rs. 7.50 per equity share. For fiscal 2006, in addition to the dividend, excluding dividend tax, of Rs. 7.50 per equity share for the year, we paid a special dividend, excluding dividend tax, of Rs. 1.00 per equity share. For fiscal 2007, we have proposed a dividend, excluding dividend tax, of Rs. 8.50 per equity share, which is subject to the approval of our shareholders. See also “Dividends”. | |
Voting rights | The ADSs will have no voting rights. Under the deposit agreement, the depositary will vote the equity shares deposited with it as directed by our board of directors. See “Restriction on Foreign Ownership of Indian Securities”. | |
Delivery and Settlement | It is expected that delivery of the ADSs to the underwriters will be made against payment on a delayed basis.The exact time of delivery will be agreed among the Joint Global Coordinators and us and is subject to certain regulatory approvals in India, which may be obtained only after pricing. The time of delivery is expected to occur no later than the tenth business day after the date of pricing, subject to these regulatory approvals. We will notify you of the time of delivery through a press release which we will post on our website atwww.icicibank.com. Prospective investors should be aware that the notification of the exact time of delivery may not occur until two or three business days before such time of delivery. Rule 15c6-1 under the Securities Exchange Act of 1934, as amended, generally requires that securities trades in the secondary market settle in three business days, unless the parties to the trade expressly agree otherwise. Accordingly, purchasers who wish to trade ADSs on any day prior to the third business day before the delivery of the ADSs will be required, by virtue of the fact that the ADSs initially will settle on a delayed basis, to specify an alternate settlement cycle at the time of any such trade, or to make any necessary arrangements to ensure that ADSs are available on the third business day after trading for settlement, to prevent a failed settlement. Purchasers of ADSs who wish to make such trades should consult their own advisors.Purchasers who are not able to borrow ADSs or make any other necessary arrangements to prevent a failed settlement may not be able to make any trades of ADSs prior to the third business day before the delivery of the ADSs to the underwriters. |
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Year Ended March 31, | ||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | 2007(1) | |||||||||||||||||||
(In millions, except per common share data) | ||||||||||||||||||||||||
Selected income statement data: | ||||||||||||||||||||||||
Interest income(2)(3) | Rs. 98,477 | Rs. 96,589 | Rs. 102,029 | Rs. 151,358 | Rs. 250,013 | US$ | 5,801 | |||||||||||||||||
Interest expense | (81,268 | ) | (71,677 | ) | (68,044 | ) | (101,015 | ) | (176,757 | ) | (4,101 | ) | ||||||||||||
Net interest income | 17,209 | 24,912 | 33,985 | 50,343 | 73,256 | 1,700 | ||||||||||||||||||
Non-interest income(4) | 22,671 | 41,758 | 62,530 | 94,797 | 163,625 | 3,796 | ||||||||||||||||||
Profit on sale of shares of ICICI Bank held by ICICI | 11,911 | — | — | — | — | — | ||||||||||||||||||
Total income | 51,791 | 66,670 | 96,515 | 145,140 | 236,881 | 5,496 | ||||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||||||
Operating expenses(5) | (18,442 | ) | (24,149 | ) | (32,776 | ) | (47,626 | ) | (79,289 | ) | (1,840 | ) | ||||||||||||
Direct marketing agency expenses | (3,232 | ) | (6,154 | ) | (8,755 | ) | (11,911 | ) | (15,602 | ) | (362 | ) | ||||||||||||
Depreciation on leased assets | (3,167 | ) | (2,805 | ) | (2,975 | ) | (2,771 | ) | (1,883 | ) | (44 | ) | ||||||||||||
Expenses pertaining to insurance business(6) | (3,006 | ) | (9,200 | ) | (26,361 | ) | (43,389 | ) | (83,358 | ) | (1,934 | ) | ||||||||||||
Total non-interest expenses | (27,847 | ) | (42,308 | ) | (70,867 | ) | (105,697 | ) | (180,132 | ) | (4,180 | ) | ||||||||||||
Operating profit before provisions | 23,944 | 24,362 | 25,648 | 39,443 | 56,749 | 1,316 | ||||||||||||||||||
Provisions and contingencies | (15,967 | ) | (5,168 | ) | (1,864 | ) | (8,455 | ) | (22,774 | ) | (528 | ) | ||||||||||||
Profit before tax | 7,977 | 19,194 | 23,784 | 30,988 | 33,975 | 788 | ||||||||||||||||||
Provision for tax | 3,539 | (3,398 | ) | (5,684 | ) | (6,998 | ) | (7,641 | ) | (177 | ) | |||||||||||||
Profit after tax | 11,516 | 15,796 | 18,100 | 23,990 | 26,334 | 611 | ||||||||||||||||||
Minority interest | 4 | 8 | 423 | 211 | 1,272 | 30 | ||||||||||||||||||
Net profit | 11,520 | 15,804 | 18,523 | 24,201 | 27,606 | 641 | ||||||||||||||||||
Per common share: | ||||||||||||||||||||||||
Earnings per share-basic(7) | Rs. 18.79 | Rs. 25.73 | Rs. 25.45 | Rs. 30.96 | Rs. 30.92 | US$ | 0.72 | |||||||||||||||||
Earnings per share-diluted(8) | 18.77 | 25.52 | 25.25 | 30.64 | 30.75 | 0.71 | ||||||||||||||||||
Dividends per share(9) | 7.50 | 7.50 | 8.50 | 8.50 | 10.00 | 0.23 | ||||||||||||||||||
Book value | 100.58 | 115.16 | 162.63 | 242.75 | 256.72 | 5.95 | ||||||||||||||||||
Equity shares outstanding at the end of the period (in millions of equity shares) | 613 | 616 | 737 | 890 | 899 | |||||||||||||||||||
Weighted average equity shares outstanding — basic (in millions of equity shares) | 613 | 614 | 728 | 782 | 893 | |||||||||||||||||||
Weighted average equity shares outstanding — diluted (in millions of equity shares) | 614 | 619 | 734 | 790 | 898 |
(1) | Rupee amounts for fiscal 2007 have been translated into US dollars using the noon buying rate of Rs. 43.10 = US$1.00 in effect on March 30, 2007. |
(2) | Interest on advances represents interest on rupee and foreign currency loans and advances (including bills) and hire purchase receivables and gains on sell-down of loans. Commission paid to direct marketing agents/ dealers for origination of retail automobile loans which was being reduced from “Interest Income” up to fiscal 2006 has been reclassified to “Direct marketing agency expenses”. |
(3) | Interest income includes gains on the sell-down of loans. In February 2006, the Reserve Bank of India issued guidelines on accounting for securitization of standard assets. In accordance with these guidelines, with effect from February 1, 2006, we account for any loss arising on securitization immediately at the time of sale and the profit/premium arising on account of securitization is |
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amortized over the life of the asset. Prior to February 1, 2006, profit arising on account of securitization was recorded at the time of sale. | |
(4) | As required by the Reserve Bank of India’s circular no. DBOD.BP.BC.87/21.04.141/2006-07 dated April 20, 2007, we have deducted the amortization of premium on government securities, which was earlier included in “Provisions and contingencies”, from “Non interest income”. Prior period figures have been reclassified to conform to the current classification. |
(5) | Operating expenses for fiscal 2003 includes Rs. 256 million (US$6 million) and operating expenses for fiscal years 2004, 2005, 2006 and 2007 include Rs. 384 million (US$9 million) in each year on account of amortization of expenses related to our early retirement option scheme over a period of five years as approved by the Reserve Bank of India. |
(6) | The amount of premium ceded on re-insurance has been reclassified from expenses pertaining to insurance business and netted off from non-interest income. |
(7) | Represents net profit/(loss) before dilutive impact. |
(8) | Represents net profit/(loss) adjusted for full dilution. Options to purchase 12,610,275, 1,098,225, 5,000 and 123,500 equity shares granted to employees at a weighted average exercise price of Rs. 154.7, Rs. 266.6, Rs. 569.6 and Rs. 849.2 were outstanding in fiscal 2003, 2004, 2006 and 2007 respectively, but were not included in the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of the equity shares during the period. |
(9) | In India, dividends for a fiscal year are normally declared and paid in the following year. We declared a dividend of Rs. 7.50 per equity share for each of fiscal 2003 and fiscal 2004, which was paid out in August 2003 and in September 2004, i.e., in fiscal 2004 and in fiscal 2005 respectively. We declared a dividend of Rs. 8.50 per equity share for each of fiscal 2005 and fiscal 2006, which was paid out in August 2005 and in July 2006 respectively i.e., in fiscal 2006 and in fiscal 2007. The dividend per equity share shown above is based on the total amount of dividends declared for the year. In US dollars, the dividend was US$0.23 per equity share for fiscal 2007. We have declared a dividend of Rs. 10.00 per equity share for fiscal 2007 which is subject to the approval of shareholders. |
Year Ended March 31, | ||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||
Selected income statement data: | ||||||||||||||||||||
Interest income | 9.39 | % | 8.22 | % | 6.94 | % | 6.99 | % | 7.69 | % | ||||||||||
Interest expense | (7.75 | ) | (6.10 | ) | (4.63 | ) | (4.66 | ) | (5.44 | ) | ||||||||||
Net interest income | 1.64 | 2.12 | 2.31 | 2.33 | 2.25 | |||||||||||||||
Non-interest income | 3.30 | (1) | 3.56 | 4.26 | 4.37 | 5.03 | ||||||||||||||
Total income | 4.93 | 5.68 | 6.57 | 6.70 | 7.28 | |||||||||||||||
Operating expenses | (1.76 | ) | (2.06 | ) | (2.24 | ) | (2.20 | ) | (2.44 | ) | ||||||||||
Direct marketing agency expenses | (0.31 | ) | (0.52 | ) | (0.60 | ) | (0.56 | ) | (0.48 | ) | ||||||||||
Depreciation on leased assets | (0.30 | ) | (0.24 | ) | (0.20 | ) | (0.13 | ) | (0.06 | ) | ||||||||||
Expenses pertaining to insurance business | (0.29 | ) | (0.78 | ) | (1.79 | ) | (2.00 | ) | (2.56 | ) | ||||||||||
Non-interest expenses | (2.66 | ) | (3.60 | ) | (4.83 | ) | (4.89 | ) | (5.54 | ) | ||||||||||
Operating profit before provisions | 2.28 | 2.08 | 1.74 | 1.81 | 1.74 | |||||||||||||||
Provisions and contingencies | (1.52 | ) | (0.44 | ) | (0.13 | ) | (0.39 | ) | (0.70 | ) | ||||||||||
Profit before tax | 0.76 | 1.64 | 1.61 | 1.42 | 1.04 | |||||||||||||||
Provision for tax | 0.34 | (0.29 | ) | (0.39 | ) | (0.32 | ) | (0.24 | ) | |||||||||||
Profit after tax | 1.10 | 1.35 | 1.22 | 1.10 | 0.80 | |||||||||||||||
Minority interest | 0.00 | 0.00 | 0.03 | 0.01 | 0.04 | |||||||||||||||
Net profit | 1.10 | % | 1.35 | % | 1.25 | % | 1.11 | % | 0.84 | % | ||||||||||
(1) | Includes profit on sale of shares of ICICI Bank held by the ICICI Bank Shares Trust. These shares were originally held by ICICI and were transferred to the ICICI Bank Shares Trust prior to the amalgamation. |
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At or for the Year Ended March 31, | ||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | 2007(1) | |||||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||||
Selected balance sheet data: | ||||||||||||||||||||||||
Total assets | Rs. 1,094,332 | Rs. 1,307,476 | Rs. 1,784,337 | Rs. 2,772,296 | Rs. 3,943,347 | US$ | 91,493 | |||||||||||||||||
Investments | 377,754 | 462,675 | 546,516 | 840,139 | 1,206,167 | 27,985 | ||||||||||||||||||
Advances, net | 539,090 | 649,479 | 964,100 | 1,562,603 | 2,113,994 | 49,049 | ||||||||||||||||||
Non-performing customer assets(gross)(2) | 59,063 | 40,821 | 34,973 | 23,086 | 42,557 | 987 | ||||||||||||||||||
Total liabilities | 1,024,110 | 1,226,417 | 1,658,095 | 2,546,378 | 3,700,197 | 85,851 | ||||||||||||||||||
Deposits | 479,507 | 680,787 | 1,011,086 | 1,724,510 | 2,486,136 | 57,683 | ||||||||||||||||||
Borrowings | 367,216 | 349,581 | 383,690 | 450,000 | 616,595 | 14,306 | ||||||||||||||||||
Preference share capital(3) | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 81 | ||||||||||||||||||
Equity share capital | 6,127 | 6,164 | 7,368 | 8,898 | 8,993 | 209 | ||||||||||||||||||
Reserves and surplus | 60,595 | 71,395 | 115,374 | 213,520 | 230,657 | 5,352 | ||||||||||||||||||
Period average(4) | ||||||||||||||||||||||||
Total assets | 1,048,825 | 1,174,541 | 1,469,378 | 2,166,897 | 3,250,679 | 75,422 | ||||||||||||||||||
Interest-earning assets | 882,342 | 985,744 | 1,217,707 | 1,806,601 | 2,728,531 | 63,307 | ||||||||||||||||||
Advances, net | 501,306 | 577,138 | 763,729 | 1,200,315 | 1,763,886 | 40,925 | ||||||||||||||||||
Total liabilities(5) | 980,259 | 1,097,546 | 1,355,468 | 2,001,177 | 3,015,189 | 69,958 | ||||||||||||||||||
Interest-bearing liabilities | 904,499 | 1,012,604 | 1,221,303 | 1,795,244 | 2,707,456 | 62,818 | ||||||||||||||||||
Borrowings | 530,552 | 448,092 | 452,777 | 540,465 | 692,462 | 16,066 | ||||||||||||||||||
Stockholders’ equity | 65,066 | 73,495 | 110,410 | 162,220 | 231,990 | 5,383 | ||||||||||||||||||
Profitability: | ||||||||||||||||||||||||
Net profit as a percentage of: | ||||||||||||||||||||||||
Average total assets | 1.10 | % | 1.35 | % | 1.25 | % | 1.11 | % | 0.84 | % | ||||||||||||||
Average stockholder’s equity | 17.71 | 21.50 | 16.78 | 14.92 | 11.90 | |||||||||||||||||||
Dividend payout ratio(6) | 39.92 | 34.85 | 33.97 | 31.33 | 32.91 | |||||||||||||||||||
Spread(7) | 2.18 | 2.72 | 2.81 | 2.75 | 2.63 | |||||||||||||||||||
Net interest margin(8) | 1.95 | 2.53 | 2.79 | 2.79 | 2.68 | |||||||||||||||||||
Cost-to-income ratio(9) | 37.93 | 37.80 | 35.04 | 33.45 | 33.74 | |||||||||||||||||||
Cost-to-average assets ratio(10) | 1.76 | 2.06 | 2.23 | 2.20 | 2.44 | |||||||||||||||||||
Capital(11): | ||||||||||||||||||||||||
Average stockholders’ equity as a percentage of average total assets | 6.20 | 6.26 | 7.51 | 7.49 | 7.14 | |||||||||||||||||||
Average stockholders’ equity (including preference share capital) as a percentage of average total assets | 6.54 | 6.56 | 7.75 | 7.65 | 7.24 | |||||||||||||||||||
Asset quality: | ||||||||||||||||||||||||
Net restructured assets as a percentage of net customer assets | 13.72 | % | 9.00 | % | 6.08 | % | 3.28 | % | 2.21 | % | ||||||||||||||
Net non-performing assets as a percentage of net customer assets | 4.86 | 2.78 | 1.95 | 0.67 | 0.92 | |||||||||||||||||||
Provision on restructured assets as a percentage of gross restructured assets | 3.71 | 12.15 | 4.56 | 4.16 | 3.14 | |||||||||||||||||||
Provision on non-performing assets as a percentage of gross non-performing assets | 46.41 | 49.81 | 42.58 | 53.19 | 52.28 | |||||||||||||||||||
Provision as a percentage of gross customer assets(12) | 7.63 | 5.25 | 2.11 | 1.31 | 1.71 |
(1) | Rupee amounts at March 31, 2007 have been translated into US dollars using the noon buying rate of Rs. 43.10 = US$1.00 in effect at March 30, 2007. | |
(2) | Includes suspended interest and claims received from Export Credit Guarantee Corporation of India/ Deposit Insurance Credit Guarantee Corporation on working capital loans. |
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(3) | ICICI had issued preference share capital redeemable at face value after 20 years. For these preference shares, the notification dated April 17, 2002 from Ministry of Finance, government of India, issued on the recommendation of the Reserve Bank of India, under Section 53 of the Banking Regulation Act, 1949 had exempted us from the restriction of section 12(1) of the Banking Regulation Act, 1949, which prohibits the issue of preference shares by banks, for a period of five year. We have applied to the Reserve Bank of India for making a recommendation to central government for continuation of such exemption. | |
(4) | For fiscal years 2003 through 2007, the average balances are the average of quarterly balances outstanding at the end of March of the previous fiscal year and the end of June, September, December and March of that fiscal year. | |
(5) | Represents the average of the quarterly balance of total liabilities and minority interest. | |
(6) | Represents the ratio of total dividends paid on equity share capital, exclusive of dividend distribution tax, as a percentage of net income. | |
(7) | Represents the difference between yield on average interest-earning assets and cost of average interest-bearing liabilities. Yield on average interest-earning assets is the ratio of interest income to average interest-earning assets. Cost of average interest-bearing liabilities is the ratio of interest expense to average interest-bearing liabilities. | |
(8) | Represents the ratio of net interest income to average interest-earning assets. The difference in net interest margin and spread arises due to the difference in the amount of average interest-earning assets and average interest-bearing liabilities. If average interest-earning assets exceed average interest-bearing liabilities, net interest margin is greater than spread, and if average interest-bearing liabilities exceed average interest-earning assets, net interest margin is less than spread. | |
(9) | Represents the ratio of non-interest expense (excluding direct marketing agency expenses, lease depreciation and expenses pertaining to insurance business) to the sum of net interest income and non-interest income (net of lease depreciation). |
(10) | Represents the ratio of non-interest expense (excluding direct marketing agency expenses, lease depreciation and expenses pertaining to insurance business) to average total assets. |
(11) | ICICI Bank’s capital adequacy is computed in accordance with the Reserve Bank of India’s guidelines and is based on unconsolidated financial statements prepared in accordance with Indian GAAP. At March 31, 2007, ICICI Bank’s total capital adequacy ratio was 11.69% with a Tier 1 capital adequacy ratio of 7.42% and a Tier 2 capital adequacy ratio of 4.27%. Foreign currency bonds amounting to Rs. 32.3 billion (US$750 million) raised for Upper Tier-II capital have been excluded from the above capital adequacy ratio computation, pending clarification required by Reserve Bank of India regarding certain terms of these bonds. If these bonds were considered as Tier-II capital, the total capital adequacy ratio would be 12.81%. |
(12) | Includes general provision on standard assets. |
At or for the Year Ended March 31, | ||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | 2007(1) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Net income/(loss) | Rs. | (7,983 | ) | Rs. | 5,219 | Rs. | 8,530 | Rs. | 20,040 | Rs. | 31,271 | US$ | 726 | |||||||||||
Total assets | 1,180,263 | 1,409,131 | 1,863,447 | 2,817,328 | 3,995,402 | 92,701 | ||||||||||||||||||
Stockholders’ equity | 92,313 | 94,525 | 127,996 | 218,647 | 240,980 | 5,591 | ||||||||||||||||||
Other comprehensive income/(loss) | 2,977 | 4,741 | 3,289 | 522 | (3,241 | ) | (75 | ) | ||||||||||||||||
Per equity share | ||||||||||||||||||||||||
Net income/(loss) from continuing operation-basic(2) | (14.18 | ) | 8. | 50 | 11. | 72 | 25. | 64 | 35. | 02 | 0.81 | |||||||||||||
Net income/(loss) from continuing operation-diluted(3) | (14.18 | ) | 8. | 43 | 11. | 60 | 25. | 34 | 34. | 79 | 0.81 | |||||||||||||
Dividend(4) | Rs. | — | Rs. | 7.50 | Rs. | 7.50 | Rs. | 8.50 | Rs. | 8.50 | US$ | 0.20 |
(1) | Rupee amounts for fiscal 2007 have been translated into US dollars using the noon buying rate of Rs. 43.10 = US$1.00 in effect on March 30, 2007. |
(2) | Represents net income/(loss) before dilutive impact. |
(3) | Represents net profit/(loss) adjusted for full dilution. Options to purchase 12,610,275, 1,098,225, 5,000 and 123,500 equity shares granted to employees at a weighted average exercise price of Rs. 154.7, Rs. 266.6, Rs. 569.6 and Rs. 849.2 were outstanding in fiscal 2003, 2004, 2006 and 2007 respectively, but were not included in the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of the equity shares during the period. In fiscal 2003, we reported a net loss and accordingly all outstanding options at year-end fiscal 2003 are anti-dilutive. |
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(4) | In India, dividends for a fiscal year are normally declared and paid in the following year. We declared a dividend of Rs. 7.50 per equity share for each of fiscal 2003 and fiscal 2004, which was paid out in August 2003 and in September 2004, i.e., in fiscal 2004 and in fiscal 2005 respectively. We declared a dividend of Rs. 8.50 per equity share for each of fiscal 2005 and fiscal 2006, which was paid out in August 2005 and in July 2006 respectively i.e., in fiscal 2006 and in fiscal 2007. The dividend per equity share shown above is based on the total amount of dividends paid out on equity shares during the year, exclusive of dividend tax. This was different from the dividend declared for the year. In US$, the dividend was US$0.20 per equity share for fiscal 2007. We have declared We have declared a dividend of Rs. 10.00 per equity share for fiscal 2007 which will be paid in fiscal 2008 subject to the approval of our shareholders. |
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A slowdown in economic growth or rise in interest rates in India could cause our business to suffer. |
A significant increase in the price of crude oil could adversely affect the Indian economy, which could adversely affect our business. |
A significant change in the Indian government’s economic liberalization and deregulation policies could adversely affect our business and the price of our equity shares and ADSs. |
Financial instability in other countries, particularly emerging market countries and countries where we have established operations, could adversely affect our business and the price of our equity shares and ADSs. |
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If regional hostilities, terrorist attacks or social unrest in some parts of the country increase, our business and the price of our equity shares and ADSs could be adversely affected. |
Trade deficits could adversely affect our business and the price of our equity shares and ADSs. |
Natural calamities could adversely affect the Indian economy, or the economy of other countries where we operate, our business and the price of our equity shares and ADSs. |
Financial difficulty and other problems in certain financial institutions in India could adversely affect our business and the price of our equity shares and ADSs. |
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A decline in India’s foreign exchange reserves may affect liquidity and interest rates in the Indian economy which could adversely impact us. |
Any downgrading of India’s debt rating by an international rating agency could adversely affect our business, our liquidity and the price of our equity shares and ADSs. |
Our banking and trading activities are particularly vulnerable to interest rate risk and volatility in interest rates could adversely affect our net interest margin, the value of our fixed income portfolio, our income from treasury operations, the quality of our loan portfolio and our financial performance. |
If we are not able to control the level of non-performing assets in our portfolio, our business will suffer. |
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Further deterioration of our non-performing asset portfolio and an inability to improve our provisioning coverage as a percentage of gross non-performing assets could adversely affect the price of our equity shares and ADSs. |
The value of our collateral may decrease or we may experience delays in enforcing our collateral when borrowers default on their obligations to us which may result in failure to recover the expected value of collateral security exposing us to a potential loss. |
We have experienced rapid international growth in the last three years which has increased the complexity of the risks that we face. |
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Our rapid retail expansion in India and our rural initiative expose us to increased risks that may adversely affect our business. |
We are subject to legal and regulatory risk which may adversely affect our business and the price of our equity shares and ADSs. |
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Regulatory changes in India or other jurisdictions in which we operate could adversely affect our business. |
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The failure of our restructured loans to perform as expected or a significant increase in the level of restructured loans in our portfolio could affect our business. |
Our funding is primarily short-term and if depositors do not roll over deposited funds upon maturity, our business could be adversely affected. |
A large proportion of ICICI’s loans consisted of project finance assistance, which continues to be a part of our loan portfolio and is particularly vulnerable to completion and other risks. |
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We have a high concentration of loans to certain customers and sectors and if a substantial portion of these loans become non performing, the overall quality of our loan portfolio, our business and the price of our equity shares and ADSs could be adversely affected. |
We face greater credit risks than banks in developed economies. |
We have proposed a reorganization of our holdings in our insurance and asset management subsidiaries and our inability to implement this reorganization as well as the significant additional capital required by these businesses may adversely impact our business and the price of our equity shares and ADSs. |
While our insurance businesses are becoming an increasingly important part of our business, there can be no assurance that they will continue to experience high rates of growth. |
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Our life insurance business is in a loss position and is expected to continue to generate losses for some years. |
Loss reserves for our general insurance business are based on estimates as to future claims liabilities and adverse developments relating to claims could lead to further reserve additions and materially adversely affect our results of operations. |
The financial results of our general insurance business could be materially adversely affected by the occurrence of catastrophe. |
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Actuarial experience and other factors could differ from assumptions made in the calculation of life actuarial reserves. |
A determination against us in respect of disputed tax assessments may adversely impact our financial performance. |
We are involved in various litigations. Any final judgment awarding material damages against us could have a material adverse impact on our future financial performance, our stockholders’ equity and the price of our equity shares and ADSs. |
If we are not able to integrate any future acquisitions, our business could be disrupted. |
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Our business is very competitive and our growth strategy depends on our ability to compete effectively. |
Fraud and significant security breaches in our computer system and network infrastructure could adversely impact our business. |
System failures could adversely impact our business. |
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There is operational risk associated with our industry which, when realized, may have an adverse impact on our business. |
We are subject to credit, market and liquidity risk which may have an adverse effect on our credit ratings and our cost of funds. |
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We depend on the accuracy and completeness of information about customers and counterparties. |
Any inability to attract and retain talented professionals may adversely impact our business. |
If we are required to change our accounting policies with respect to the expensing of stock options, our earnings could be adversely affected. |
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We are exposed to fluctuations in foreign exchange rates. |
Your ability to sell in India any equity shares withdrawn from the depositary facility, the conversion of rupee proceeds from such sale into a foreign currency and the repatriation of such foreign currency may be subject to delays if specific approval of the Reserve Bank of India is required. |
Restrictions on deposit of equity shares in the depositary facility could adversely affect the price of our ADSs. |
Certain shareholders own a large percentage of our equity shares and their actions could adversely affect the price of our equity shares and ADSs. |
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Conditions in the Indian securities market may adversely affect the price or liquidity of our equity shares and ADSs. |
An active or liquid trading market for our ADSs is not assured. |
Settlement of trades of equity shares on Indian stock exchanges may be subject to delays. |
Changes in Indian regulations on foreign ownership, a change in investor preferences or an increase in the number of ADSs outstanding could adversely affect the price of our ADSs. |
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Your holdings may be diluted by additional issuances of equity and any dilution may adversely affect the market price of our equity shares and ADSs. |
You may be unable to exercise preemptive rights available to other shareholders. |
Because the equity shares underlying the ADSs are quoted in rupees in India, you may be subject to potential losses arising out of exchange rate risk on the Indian rupee. |
You may be subject to Indian taxes arising out of capital gains. |
There may be less company information available in Indian securities markets than in securities markets in the United States. |
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It may not be possible for you to enforce any judgment obtained outside India, including in the United States, against the Company or any of its affiliates in India, except by way of a suit in India on such judgment. |
• | effect service of process upon the Company and other persons or entities within jurisdictions outside India; or | |
• | enforce, in Indian courts, judgments against the Company and other persons or entities obtained in courts of jurisdictions outside India, including judgments predicated upon the civil liability provisions of the securities laws of jurisdictions outside India. |
A third party could be prevented from acquiring control of the Company because of anti-takeover provisions under Indian law. |
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Fiscal Year | Period End(1) | Average(1)(2) | ||||||
2003 | 47.53 | 48.36 | ||||||
2004 | 43.40 | 45.78 | ||||||
2005 | 43.62 | 44.87 | ||||||
2006 | 44.48 | 44.20 | ||||||
2007 | 43.10 | 45.06 | ||||||
2008 (through May 31, 2007) | 40.36 | 40.70 |
Month | High | Low | ||||||
November 2006 | 45.26 | 44.46 | ||||||
December 2006 | 44.70 | 44.11 | ||||||
January 2007 | 44.49 | 44.07 | ||||||
February 2007 | 44.21 | 43.87 | ||||||
March 2007 | 44.43 | 42.78 | ||||||
April 2007 | 43.05 | 40.56 | ||||||
May 2007 | 41.04 | 40.14 |
(1) | The noon buying rate at each period end and the average rate for each period differed from the exchange rates used in the preparation of our financial statements. |
(2) | Represents the average of the noon buying rate on the last day of each month during the period. |
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Dividend Per | Total Amount of | |||||||
Dividend Paid During the Fiscal Year | Equity Share | Dividends Paid | ||||||
(Rs. in millions) | ||||||||
2003 | 7.50 | 4,599 | ||||||
2004 | 7.50 | 5,507 | ||||||
2005 | 8.50 | 6,292 | ||||||
2006 | 8.50 | 7,583 | ||||||
2007(1) | 10.00 | 8,993 |
(1) | Proposed. Dividend will be paid to registered shareholders as of June 15, 2007 (including on shares held in physical form where valid transfer instruments have been lodged with us as of that date). |
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As of March 31, 2007 | |||||||||||||
Actual | As adjusted | ||||||||||||
(Rupees in | (US dollars in | (US dollars in | |||||||||||
millions) | millions) | millions) | |||||||||||
Borrowings(1) | |||||||||||||
Short-term debt(2) | 182,882.4 | 4,243.2 | 4,243.2 | ||||||||||
Long-term debt(3) | 645,924.1 | 14,986.6 | 14,986.6 | ||||||||||
Total debts(A) | 828,806.5 | 19,229.8 | 19,229.8 | ||||||||||
Shareholders’ Funds: | |||||||||||||
Share capital(4) | 12,493.4 | 289.9 | |||||||||||
Reserves(5) | 229,959.3 | 5,335.5 | |||||||||||
Less:unamortized deferred revenue expenditure(6) | 502.0 | 11.6 | |||||||||||
Total shareholders’ funds(B) | 241,950.7 | 5,613.8 | |||||||||||
Total capitalization(A) + (B) | 1,070,757.2 | 24,843.6 |
(1) | Borrowings do not include deposits. |
(2) | Short-term debt represents debt with a contractual maturity of less than one year. |
(3) | Includes Rs. 212,211.2 million of unsecured redeemable debentures and bonds of in the nature of subordinated debt. Long-term debt represents debt with a contractual maturity of greater than one year. |
(4) | Includes: |
(a) | preference share capital of Rs. 3500 million. | |
(b) | 110,967,096 equity shares of Rs.10 each issued vide prospectus dated December 8, 2005. | |
(c) | 37,237,460 equity shares of Rs.10 each fully paid up issued consequent to issue of 18,618,730 American depository shares | |
(d) | 9,487,051 equity shares of Rs. 10 each fully paid up on exercise of employee stock options. |
(5) | Includes: |
(a) | Rs. 1,901.9 million on exercise of employee stock options. | |
(b) | Transition adjustment on account of first time adoption of Accounting Standard 15 (Revised) on “Employee Benefits” issued by The Institute of Chartered Accountants of India. | |
(c) | Debit balance in profit and loss account of Rs. 73.7 million and goodwill on consolidation amounting to Rs. 624.0 million. |
(6) | Unamortized expenses on account of the early retirement option scheme offered to the employees. |
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• | the reported high and low closing prices quoted in rupees for our equity shares on the NSE; and | |
• | the reported high and low closing prices for our equity shares, translated into US dollars, based on the noon buying rate on the last business day of each period presented. |
Price Per Equity Share(1) | ||||||||||||||||
High | Low | High | Low | |||||||||||||
Annual prices: | ||||||||||||||||
Fiscal 2003 | Rs. 161.75 | Rs. 110.55 | US$ | 3.40 | US$ | 2.32 | ||||||||||
Fiscal 2004 | 348.25 | 120.80 | 8.02 | 2.78 | ||||||||||||
Fiscal 2005 | 413.05 | 230.40 | 9.47 | 5.28 | ||||||||||||
Fiscal 2006 | 628.75 | 359.95 | 14.14 | 8.09 | ||||||||||||
Fiscal 2007 | 999.70 | 451.20 | 23.19 | 10.47 | ||||||||||||
Quarterly prices: | ||||||||||||||||
Fiscal 2006: | ||||||||||||||||
First Quarter | Rs. 433.95 | Rs. 359.95 | US$ | 9.97 | US$ | 8.27 | ||||||||||
Second Quarter | 601.70 | 421.25 | 13.69 | 9.59 | ||||||||||||
Third Quarter | 593.40 | 479.90 | 13.20 | 10.68 | ||||||||||||
Fourth Quarter | 628.75 | 559.15 | 14.14 | 12.57 | ||||||||||||
Fiscal 2007: | ||||||||||||||||
First Quarter | Rs. 662.55 | Rs. 451.20 | US$ | 14.44 | US$ | 9.84 | ||||||||||
Second Quarter | 708.80 | 467.75 | 14.49 | 10.22 | ||||||||||||
Third Quarter | 903.20 | 687.00 | 20.48 | 15.57 | ||||||||||||
Fourth Quarter | 999.70 | 810.00 | 23.19 | 18.79 | ||||||||||||
Fiscal 2008: | ||||||||||||||||
First Quarter (through May 16, 2007) | Rs. 962.90 | Rs. 803.95 | US$ | 23.73 | US$ | 19.81 | ||||||||||
Monthly prices: | ||||||||||||||||
December 2006 | Rs. 903.20 | Rs. 803.95 | US$ | 20.48 | US$ | 18.23 | ||||||||||
January 2007 | 991.45 | 883.85 | 22.50 | 20.06 | ||||||||||||
February 2007 | 999.70 | 803.95 | 22.68 | 18.24 | ||||||||||||
March 2007 | 899.60 | 810.00 | 20.87 | 18.79 | ||||||||||||
April 2007 | 962.90 | 803.95 | 23.46 | 19.59 | ||||||||||||
May 2007 | 951.15 | 839.80 | 23.57 | 20.81 |
(1) | Data from the NSE. The prices quoted on the BSE may be different. |
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Price Per ADS | ||||||||
High | Low | |||||||
Annual prices: | ||||||||
Fiscal 2003 | US$ | 8.26 | US$ | 4.84 | ||||
Fiscal 2004 | 18.33 | 5.27 | ||||||
Fiscal 2005 | 22.65 | 11.25 | ||||||
Fiscal 2006 | 32.26 | 18.08 | ||||||
Fiscal 2007 | 46.74 | 21.25 | ||||||
Quarterly prices: | ||||||||
Fiscal 2006: | ||||||||
First Quarter | US$ | 22.23 | US$ | 18.08 | ||||
Second Quarter | 28.25 | 22.00 | ||||||
Third Quarter | 29.47 | 22.04 | ||||||
Fourth Quarter | 32.26 | 27.68 | ||||||
Fiscal 2007: | ||||||||
First Quarter | US$ | 30.27 | US$ | 22.49 | ||||
Second Quarter | 30.71 | 21.25 | ||||||
Third Quarter | 42.45 | 30.17 | ||||||
Fourth Quarter | 46.74 | 36.54 | ||||||
Fiscal 2008: | ||||||||
First Quarter (through May 16, 2007) | US$ | 46.52 | US$ | 36.53 | ||||
Monthly prices: | ||||||||
December 2006 | US$ | 42.45 | US$ | 37.00 | ||||
January 2007 | 45.14 | 40.95 | ||||||
February 2007 | 46.74 | 36.54 | ||||||
March 2007 | 40.85 | 36.75 | ||||||
April 2007 | 46.52 | 36.53 | ||||||
May 2007 | 47.89 | 40.29 |
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As of Fiscal Year-End | Bank Rate | Reverse Repo Rate | Repo Rate | |||||||||
2002 | 6.50 | 6.00 | 8.00 | |||||||||
2003 | 6.25 | 5.00 | 7.00 | |||||||||
2004 | 6.00 | 4.50 | 6.00 | |||||||||
2005 | 6.00 | 4.75 | 6.00 | |||||||||
2006 | 6.00 | 5.50 | 6.50 | |||||||||
2007 | 6.00 | 6.00 | 7.50 |
Source: | Reserve Bank of India: Handbook of Statistics on Indian Economy, 2006, Annual Report 2005-2006 and Weekly Statistical Supplements and Annual Policy Statement 2007-08. |
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Other key factors |
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Effect of Other Acquisitions |
Average Balance Sheet |
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Year Ended March 31, | |||||||||||||||||||||||||||||||||||||
2005 | 2006 | 2007 | |||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | ||||||||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||||||||||
Balance | Expense | Cost | Balance | Expense | Cost | Balance | Expense | Cost | |||||||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||
Advances: | |||||||||||||||||||||||||||||||||||||
Rupee | Rs. 646,108 | Rs. 66,698 | 10.32 | % | Rs. 1,008,153 | Rs. 95,541 | 9.48 | % | Rs. 1,462,683 | 149,907 | 10.25 | % | |||||||||||||||||||||||||
Foreign currency | 117,621 | 6,804 | 5.78 | 192,162 | 10,817 | 5.63 | 301,203 | 19,794 | 6.57 | ||||||||||||||||||||||||||||
Total advances | 763,729 | 73,502 | 9.62 | 1,200,315 | 106,358 | 8.86 | 1,763,886 | 169,701 | 9.62 | ||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||
Rupee | 371,713 | 23,468 | 6.31 | 474,395 | 38,554 | 8.13 | 654,517 | 60,556 | 9.25 | ||||||||||||||||||||||||||||
Foreign currency | 10,689 | 454 | 4.25 | 39,499 | 2,054 | 5.20 | 131,569 | 7,905 | 6.01 | ||||||||||||||||||||||||||||
Total investments | 382,402 | 23,922 | 6.26 | 513,894 | 40,608 | 7.90 | 786,086 | 68,461 | 8.71 | ||||||||||||||||||||||||||||
Balances with Reserve | |||||||||||||||||||||||||||||||||||||
Bank of India and other banks: | |||||||||||||||||||||||||||||||||||||
Rupee | 47,329 | 1,853 | 3.92 | 48,713 | 1,478 | 3.03 | 86,333 | 3,049 | 3.53 | ||||||||||||||||||||||||||||
Foreign currency | 24,247 | 482 | 1.99 | 43,679 | 1,956 | 4.48 | 92,226 | 5,989 | 6.49 | ||||||||||||||||||||||||||||
Total balances with Reserve Bank of India and other banks | 71,576 | 2,335 | 3.26 | 92,392 | 3,434 | 3.72 | 178,559 | 9,038 | 5.06 | ||||||||||||||||||||||||||||
Other interest income | 2,270 | 958 | 2,813 | ||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||||
Rupee | 1,065,150 | 94,289 | 8.85 | 1,531,261 | 136,531 | 8.92 | 2,203,533 | 216,325 | 9.82 | ||||||||||||||||||||||||||||
Foreign currency | 152,557 | 7,740 | 5.07 | 275,340 | 14,827 | 5.38 | 524,998 | 33,688 | 6.42 | ||||||||||||||||||||||||||||
Total interest-earning assets | 1,217,707 | 102,029 | 8.38 | 1,806,601 | 151,358 | 8.38 | 2,728,531 | 250,013 | 9.16 | ||||||||||||||||||||||||||||
Fixed assets | 40,786 | 41,495 | 41,809 | ||||||||||||||||||||||||||||||||||
Other assets | 210,885 | 318,801 | 480,339 | ||||||||||||||||||||||||||||||||||
Total non-earning assets | 251,671 | 360,296 | 522,148 | ||||||||||||||||||||||||||||||||||
Total assets | Rs. 1,469,378 | Rs. 102,029 | Rs. 2,166,897 | 151,358 | Rs. 3,250,679 | 250,013 | |||||||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||||||||||
Savings account deposits: | |||||||||||||||||||||||||||||||||||||
Rupee | Rs. 97,097 | Rs. 2,179 | 2.24 | % | Rs. 157,037 | Rs. 3,946 | 2.51 | % | Rs. 259,744 | Rs. 6,760 | 2.60 | % | |||||||||||||||||||||||||
Foreign currency | 1,014 | 25 | 2.47 | 14,621 | 574 | 3.93 | 67,982 | 3,404 | 5.01 | ||||||||||||||||||||||||||||
Total savings account deposits | 98,111 | 2,204 | 2.25 | 171,658 | 4,520 | 2.63 | 327,726 | 10,164 | 3.10 | ||||||||||||||||||||||||||||
Time deposits: | |||||||||||||||||||||||||||||||||||||
Rupee | 540,056 | 29,153 | 5.40 | 846,963 | 51,345 | 6.06 | 1,333,395 | 104,385 | 7.83 | ||||||||||||||||||||||||||||
Foreign currency | 43,276 | 1,266 | 2.93 | 93,309 | 3,726 | 3.99 | 179,519 | 10,016 | 5.58 | ||||||||||||||||||||||||||||
Total time deposits | 583,332 | 30,419 | 5.21 | 940,272 | 55,071 | 5.86 | 1,512,914 | 114,401 | 7.56 | ||||||||||||||||||||||||||||
Other demand deposits | |||||||||||||||||||||||||||||||||||||
Rupee | 84,360 | 138,357 | 165,646 | ||||||||||||||||||||||||||||||||||
Foreign currency | 2,722 | 4,492 | 8,708 | ||||||||||||||||||||||||||||||||||
Total other demand deposits | 87,082 | 142,849 | 174,354 |
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Year Ended March 31, | |||||||||||||||||||||||||||||||||||||
2005 | 2006 | 2007 | |||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | ||||||||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||||||||||
Balance | Expense | Cost | Balance | Expense | Cost | Balance | Expense | Cost | |||||||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||||||||||
Rupee | 340,811 | 31,396 | 9.21 | 349,907 | 32,879 | 9.40 | 362,586 | 34,472 | 9.51 | ||||||||||||||||||||||||||||
Foreign currency | 111,966 | 4,025 | 3.59 | 190,558 | 8,545 | 4.48 | 329,876 | 17,720 | 5.37 | ||||||||||||||||||||||||||||
Total borrowings | 452,777 | 35,421 | 7.82 | 540,465 | 41,424 | 7.66 | 692,462 | 52,192 | 7.54 | ||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||
Rupee | 1,062,324 | 62,728 | 5.90 | 1,492,264 | 88,170 | 5.91 | 2,121,371 | 145,617 | 6.86 | ||||||||||||||||||||||||||||
Foreign currency | 158,978 | 5,316 | 3.34 | 302,980 | 12,845 | 4.24 | 586,085 | 31,140 | 5.31 | ||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,221,302 | 68,044 | 5.57 | 1,795,244 | 101,015 | 5.63 | 2,707,456 | 176,757 | 6.53 | ||||||||||||||||||||||||||||
Other liabilities | 134,166 | 205,933 | 307,733 | ||||||||||||||||||||||||||||||||||
Total liabilities | 1,355,468 | 68,044 | 2,001,177 | 101,015 | 3,015,189 | ||||||||||||||||||||||||||||||||
Preference share capital | 3,500 | 3,500 | 3,500 | ||||||||||||||||||||||||||||||||||
Stockholders’ equity | 110,410 | 162,220 | 231,990 | ||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | Rs. 1,469,378 | Rs. 68,044 | Rs. 2,166,897 | Rs. 101,015 | Rs. 3,250,679 | Rs. 176,757 | |||||||||||||||||||||||||||||||
Analysis of changes in interest income and interest expense volume and rate analysis |
Fiscal 2006 vs. Fiscal 2005 | Fiscal 2007 vs. Fiscal 2006 | ||||||||||||||||||||||||
Increase (Decrease) Due to | Increase (Decrease) Due to | ||||||||||||||||||||||||
Change in | Change in | Change in | Change in | ||||||||||||||||||||||
Net | Average | Average | Net | Average | Average | ||||||||||||||||||||
Change | Volume | Rate | Change | Volume | Rate | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||
Advances: | |||||||||||||||||||||||||
Rupee | Rs. 28,843 | Rs. 34,311 | Rs. (5,468 | ) | Rs. 54,366 | Rs. 46,584 | Rs. 7,782 | ||||||||||||||||||
Foreign currency | 4,013 | 4,195 | (182 | ) | 8,977 | 7,166 | 1,811 | ||||||||||||||||||
Total advances | 32,856 | 38,506 | (5,650 | ) | 63,343 | 53,750 | 9,593 | ||||||||||||||||||
Investments: | |||||||||||||||||||||||||
Rupee | 15,086 | 8,345 | 6,741 | 22,002 | 16,665 | 5,337 | |||||||||||||||||||
Foreign currency | 1,600 | 1,498 | 102 | 5,851 | 5,532 | 319 | |||||||||||||||||||
Total investments | 16,686 | 9,843 | 6,843 | 27,853 | 22,197 | 5,656 | |||||||||||||||||||
Balances with Reserve Bank of India and other banks: | |||||||||||||||||||||||||
Rupee | (375 | ) | 42 | (417 | ) | 1,571 | 1,329 | 242 | |||||||||||||||||
Foreign currency | 1,474 | 870 | 604 | 4,033 | 3,153 | 880 | |||||||||||||||||||
Total balances with Reserve Bank of India and other banks | 1,099 | 912 | 187 | 5,604 | 4,482 | 1,122 | |||||||||||||||||||
Other interest income | (1,312 | ) | (1,312 | ) | 1,855 | 1,855 | |||||||||||||||||||
Total interest income: | |||||||||||||||||||||||||
Rupee | 42,242 | 42,698 | (456 | ) | 79,794 | 64,578 | 15,216 | ||||||||||||||||||
Foreign currency | 7,087 | 6,563 | 524 | 18,861 | 15,851 | 3,010 | |||||||||||||||||||
Total interest income | 49,329 | 49,261 | 68 | 98,655 | 80,429 | 18,226 |
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Fiscal 2006 vs. Fiscal 2005 | Fiscal 2007 vs. Fiscal 2006 | ||||||||||||||||||||||||
Increase (Decrease) Due to | Increase (Decrease) Due to | ||||||||||||||||||||||||
Change in | Change in | Change in | Change in | ||||||||||||||||||||||
Net | Average | Average | Net | Average | Average | ||||||||||||||||||||
Change | Volume | Rate | Change | Volume | Rate | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||
Savings account deposits: | |||||||||||||||||||||||||
Rupee | 1,767 | 1,506 | 261 | 2,814 | 2,673 | 141 | |||||||||||||||||||
Foreign currency | 549 | 534 | 15 | 2,830 | 2672 | 158 | |||||||||||||||||||
Total savings account deposits | 2,316 | 2,040 | 276 | 5,644 | 5,345 | 299 | |||||||||||||||||||
Time deposits: | |||||||||||||||||||||||||
Rupee | 22,192 | 18,605 | 3,587 | 53,040 | 38,080 | 14,960 | |||||||||||||||||||
Foreign currency | 2,460 | 1,998 | 462 | 6,290 | 4,810 | 1,480 | |||||||||||||||||||
Total time deposits | 24,652 | 20,603 | 4,049 | 59,330 | 42,890 | 16,440 | |||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||
Rupee | 1,483 | 855 | 628 | 1,593 | 1,205 | 388 | |||||||||||||||||||
Foreign currency | 4,520 | 3,524 | 996 | 9,175 | 7,484 | 1,691 | |||||||||||||||||||
Total borrowings | 6,003 | 4,379 | 1,624 | 10,768 | 8,689 | 2,079 | |||||||||||||||||||
Total interest expense: | |||||||||||||||||||||||||
Rupee | 25,442 | 20,966 | 4,476 | 57,447 | 41,958 | 15,489 | |||||||||||||||||||
Foreign currency | 7,529 | 6,056 | 1,473 | 18,295 | 14,966 | 3,329 | |||||||||||||||||||
Total interest expense | 32,971 | 27,022 | 5,949 | 75,742 | 56,924 | 18,818 | |||||||||||||||||||
Net interest income: | |||||||||||||||||||||||||
Rupee | 16,801 | 21,732 | (4,931 | ) | 22,347 | 22,620 | (273 | ) | |||||||||||||||||
Foreign currency | (442 | ) | 507 | (949 | ) | 566 | 885 | (319 | ) | ||||||||||||||||
16,359 | 22,239 | (5,880 | ) | 22,913 | 23,505 | (592 | ) | ||||||||||||||||||
Yields, Spreads and Margins |
Year Ended March 31, | ||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||
Interest income | Rs. 98,477 | Rs. 96,589 | Rs. 102,029 | Rs. 151,358 | Rs. 250,013 | |||||||||||||||
Average interest-earning assets | 882,342 | 985,744 | 1,217,707 | 1,806,601 | 2,728,531 | |||||||||||||||
Interest expense | 81,268 | 71,677 | 68,044 | 101,015 | 176,757 | |||||||||||||||
Average interest-bearing liabilities | 904,499 | 1,012,604 | 1,221,302 | 1,795,244 | 2,707,456 | |||||||||||||||
Average total assets | 10,48,825 | 1,174,541 | 1,469,378 | 2,166,897 | 3,250,679 | |||||||||||||||
Average interest-earning assets as a percentage of average total assets | 84.13 | % | 83.93 | % | 82.87 | % | 83.37 | % | 83.94 | % | ||||||||||
Average interest-bearing liabilities as a percentage of average total assets | 86.24 | 86.21 | 83.12 | 82.85 | 83.29 | |||||||||||||||
Average interest-earning assets as a percentage of average interest-bearing liabilities | 97.55 | 97.35 | 99.71 | 100.63 | 100.78 |
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Year Ended March 31, | |||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | |||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||
Yield | 11.16 | 9.80 | 8.38 | 8.38 | 9.16 | ||||||||||||||||
Rupee | 11.97 | 10.38 | 8.85 | 8.92 | 9.82 | ||||||||||||||||
Foreign currency | 4.53 | 4.63 | 5.07 | 5.39 | 6.42 | ||||||||||||||||
Cost of funds | 8.98 | 7.08 | 5.57 | 5.63 | 6.53 | ||||||||||||||||
Rupee | 9.75 | 7.45 | 5.90 | 5.91 | 6.85 | ||||||||||||||||
Foreign currency | 3.14 | 3.18 | 3.34 | 4.24 | 5.35 | ||||||||||||||||
Spread(1) | 2.18 | 2.72 | 2.81 | 2.75 | 2.63 | ||||||||||||||||
Rupee | 2.22 | 2.93 | 2.95 | 3.01 | 2.97 | ||||||||||||||||
Foreign currency | 1.39 | 1.45 | 1.73 | 1.15 | 1.07 | ||||||||||||||||
Net interest margin(2) | 1.95 | 2.53 | 2.79 | 2.79 | 2.68 | ||||||||||||||||
Rupee | 2.05 | 2.60 | 2.96 | 3.16 | 3.21 | ||||||||||||||||
Foreign currency | 1.11 | 1.85 | 1.59 | 0.72 | 0.49 |
(1) | Spread is the difference between yield on averageinterest-earning assets and cost of averageinterest-bearing liabilities. Yield on averageinterest-earning assets is the ratio of interest income to averageinterest-earning assets. Cost of averageinterest-bearing liabilities is the ratio of interest expense to averageinterest-bearing liabilities. |
(2) | Net interest margin is the ratio of net interest income to averageinterest-earning assets. The difference in net interest margin and spread arises due to the difference in amount of averageinterest-earning assets and averageinterest-bearing liabilities. If averageinterest-earning assets exceed averageinterest-bearing liabilities, net interest margin is greater than the spread and if averageinterest-bearing liabilities exceed averageinterest-earning assets, net interest margin is less than the spread. |
Summary |
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Net Interest Income |
Year Ended March 31, | ||||||||||||||||
2007/2006 | ||||||||||||||||
2006 | 2007 | 2007 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Interest income | Rs. 151,358 | Rs. 250,013 | US$ | 5,801 | 65.2 | % | ||||||||||
Interest expense | (101,015 | ) | (176,757 | ) | (4,101 | ) | 75.0 | |||||||||
Net interest income | Rs. 50,343 | Rs. 73,256 | US$ | 1,700 | 45.5 | % | ||||||||||
• | an increase of Rs. 921.9 billion (US$21.4 billion) or 51.0% in the average volume ofinterest-earning assets; and | |
• | net interest margin of 2.7% in fiscal 2007 compared to 2.8% in fiscal 2006. |
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Non-Interest Income |
Year Ended March 31, | ||||||||||||||||
2007/2006 | ||||||||||||||||
2006 | 2007 | 2007 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Commission, exchange and brokerage | Rs. 32,546 | Rs. 54,432 | US$ | 1,263 | 67.3 | % | ||||||||||
Profit/(loss) on sale of investments (net) | 10,989 | 14,062 | 326 | 28.0 | ||||||||||||
Profit/(loss) on revaluation of investments (net) | (8,527 | ) | (11,777 | ) | (273 | ) | 38.1 | |||||||||
Profit/(loss) on sale of land, buildings and other assets (net) | 52 | 351 | 8 | 575.5 | ||||||||||||
Profit/(loss) on foreign exchange transactions (net) | 4,452 | 8,435 | 196 | 89.5 | ||||||||||||
Income pertaining to insurance business(1) | 50,704 | 95,126 | 2,207 | 87.6 | ||||||||||||
Miscellaneous income (including lease income) | 4,581 | 2,996 | 70 | (34.6 | ) | |||||||||||
Total other income | Rs. 94,797 | Rs. 163,625 | US$ | 3,797 | 72.6 | % | ||||||||||
(1) | The amount of premium ceded on re-insurance has been reclassified from expenses pertaining to insurance business and netted off from non-interest income. |
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Non-Interest Expense |
Year Ended March 31, | ||||||||||||||||
2007/2006 | ||||||||||||||||
2006 | 2007 | 2007 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Payments to and provisions for employees | Rs. 17,112 | Rs. 26,365 | US$ | 612 | 54.1 | % | ||||||||||
Depreciation on own property | 3,908 | 4,272 | 99 | 9.3 | ||||||||||||
Auditor’s fees and expenses | 43 | 64 | 1 | 48.1 | ||||||||||||
Other administrative expenses | 26,563 | 48,588 | 1,127 | 82.9 | ||||||||||||
Operating expenses | 47,626 | 79,289 | 1,839 | 66.5 | ||||||||||||
Direct marketing agency expenses | 11,912 | 15,602 | 362 | 31.0 | ||||||||||||
Depreciation on leased assets | 2,771 | 1,883 | 44 | (32.1 | ) | |||||||||||
Expenses pertaining to insurance business(1) | 43,389 | 83,358 | 1,934 | 92.1 | ||||||||||||
Total non-interest expenses | Rs. 105,698 | Rs. 180,132 | US$ | 4,179 | 70.4 | % | ||||||||||
(1) | The amount of premium ceded on re-insurance has been reclassified from expenses pertaining to insurance business and netted off from non-interest income. |
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Provisions for Non-performing Assets and Restructured Loans |
At March 31, | ||||||||||||||||
2007/2006 | ||||||||||||||||
2006 | 2007 | 2007 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Gross restructured loans(1) | Rs. 55,463 | Rs. 50,407 | US$ | 1,170 | (9.1 | )% | ||||||||||
Provisions for restructured loans(1) | (2,305 | ) | (1,581 | ) | (37 | ) | (31.4 | ) | ||||||||
Net restructured loans | 53,158 | 48,826 | 1,133 | (8.1 | ) | |||||||||||
Gross non-performing assets | 23,086 | 42,557 | 987 | 84.3 | ||||||||||||
Provisions for non-performing assets(2) | (12,280 | ) | (22,249 | ) | (516 | ) | 81.2 | |||||||||
Net non-performing assets | 10,806 | 20,308 | 471 | 87.9 | ||||||||||||
Gross restructured loans and non-performing assets | 78,549 | 92,964 | 2,157 | 18.4 | ||||||||||||
Provision for restructured loans and non-performing assets(3) | (14,585 | ) | (23,830 | ) | (553 | ) | 63.4 | |||||||||
Net restructured loans and non-performing assets | 63,964 | 69,134 | 1,604 | 8.1 | ||||||||||||
Gross customer assets | 1,638,525 | 2,234,339 | 51,841 | 36.4 | ||||||||||||
Net customer assets | 1,622,675 | 2,209,078 | 51,255 | 36.1 | ||||||||||||
Gross restructured loans as a percentage of gross customer assets | 3.4 | % | 2.3 | % | ||||||||||||
Gross non-performing assets as a percentage of gross customer assets | 1.4 | 1.9 |
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At March 31, | ||||||||||||||||
2007/2006 | ||||||||||||||||
2006 | 2007 | 2007 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Net restructured loans as a percentage of net customer assets | 3.3 | 2.2 | ||||||||||||||
Net non-performing assets as a percentage of net customer assets | 0.7 | 0.9 | ||||||||||||||
Provisions on restructured loans as a percentage of gross restructured assets | 4.2 | 3.1 | ||||||||||||||
Provisions on non-performing assets as a percentage of gross non-performing assets | 53.2 | 52.3 | ||||||||||||||
Provisions as a percentage of gross customer assets(4) | 1.3 | 1.7 |
(1) | Includes debentures. |
(2) | Includes interest suspense. |
(3) | Excludes technical write-offs. |
(4) | Includes provision against continuing restructured loans, loans classified as non-performing assets and general provision on performing assets as required by the Reserve Bank of India. |
Year Ended March 31, | ||||||||||||||||
2007/2006 | ||||||||||||||||
2006 | 2007 | 2007 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Provisions for investments (including credit substitutes)(net)(1) | Rs. 134 | Rs. 384 | US$ | 9 | 187.0 | % | ||||||||||
Provision for non-performing assets | 4,689 | 14,553 | 338 | 210.4 | ||||||||||||
Provision for standard assets | 3,428 | 7,529 | 175 | 119.6 | ||||||||||||
Others | 204 | 308 | 7 | 51.1 | ||||||||||||
Total provisions and contingencies (excluding tax) | Rs. 8,455 | Rs. 22,774 | US$ | 529 | 169.4 | % | ||||||||||
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(1) | Excludes amortization on Government securities. |
(2) | We do not distinguish between provisions and write-offs while assessing the adequacy of our loan loss coverage, as both provisions and write-offs represents a reduction of the principal amount of a non-performing asset. In compliance with Indian regulations governing the presentation of financial information by banks, gross non-performing assets are reported gross of provisions net of cumulative write-offs in our financial statements. |
Tax Expense |
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Financial Condition |
Assets |
At March 31, | ||||||||||||||||
2007/2006 | ||||||||||||||||
2006 | 2007 | 2007 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Cash and cash equivalents | Rs. 182,551 | Rs. 396,891 | US$ | 9,209 | 117.4 | % | ||||||||||
Investments | 840,139 | 1,206,167 | 27,985 | 43.6 | ||||||||||||
Advances (net of provisions) | 1,562,603 | 2,113,994 | 49,049 | 35.3 | ||||||||||||
Fixed assets | 41,429 | 43,402 | 1,007 | 4.8 | ||||||||||||
Other assets | 145,574 | 182,893 | 4,243 | 25.6 | ||||||||||||
Total assets | Rs. 2,772,296 | Rs. 3,943,347 | US$ | 91,493 | 42.2 | % | ||||||||||
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Liabilities and Stockholders’ Equity |
At March 31, | ||||||||||||||||
2007/2006 | ||||||||||||||||
2006 | 2007 | 2007 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Deposits | Rs. 1,724,510 | Rs. 2,486,136 | US$ | 57,683 | 44.2 | % | ||||||||||
Borrowings | 450,000 | 616,595 | 14,306 | 37.0 | ||||||||||||
Other liabilities(1) | 360,310 | 581,742 | 13,497 | 61.5 | ||||||||||||
Proposed dividend (including corporate dividend tax) | 8,809 | 10,628 | 247 | 20.7 | ||||||||||||
Minority interest | �� | 2,749 | 5,096 | 118 | 85.3 | |||||||||||
Total liabilities | 2,546,378 | 3,700,197 | 85,851 | 45.3 | ||||||||||||
Equity share capital | 8,898 | 8,993 | 209 | 1.1 | ||||||||||||
Preference share capital | 3,500 | 3,500 | 81 | 0.0 | ||||||||||||
Reserves and surplus | 213,520 | 230,657 | 5,352 | 8.0 | ||||||||||||
Total liabilities (including capital and reserves) | Rs. 2,772,296 | Rs. 3,943,347 | US$ | 91,493 | 42.2 | % | ||||||||||
(1) | Includes subordinated debt. |
Summary |
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Net Interest Income |
Year Ended March 31, | ||||||||||||||||
2006/2005 | ||||||||||||||||
2005 | 2006 | 2006 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Interest income | Rs. 102,029 | Rs. 151,358 | US$ | 3,512 | 48.3 | % | ||||||||||
Interest expense | (68,044 | ) | (101,015 | ) | (2,344 | ) | 48.5 | |||||||||
Net interest income | Rs. 33,985 | Rs. 50,343 | US$ | 1,168 | 48.1 | % | ||||||||||
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Non-Interest Income |
Year Ended March 31, | ||||||||||||||||
2006/2005 | ||||||||||||||||
2005 | 2006 | 2006 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Commission, exchange and brokerage | Rs. 20,751 | Rs. 32,546 | US$ | 755 | 56.8 | % | ||||||||||
Profit/(loss) on sale of investments (net) | 7,560 | 10,989 | 255 | 45.3 | ||||||||||||
Profit/(loss) on revaluation of investments (net) | (2,619 | ) | (8,526 | ) | (198 | ) | 225.6 | |||||||||
Profit/(loss) on sale of land, buildings and other assets (net) | (9 | ) | 52 | 1 | (663.4 | ) | ||||||||||
Profit/(loss) on foreign exchange transactions (net) | 2,781 | 4,452 | 103 | 60.1 | ||||||||||||
Income pertaining to insurance business(1) | 29,674 | 50,703 | 1,176 | 70.9 | ||||||||||||
Miscellaneous income (including lease income) | 4,392 | 4,581 | 106 | 4.3 | ||||||||||||
Total other income | Rs. 62,530 | Rs. 94,797 | US$ | 2,199 | 51.6 | % | ||||||||||
(1) | The amount of premium ceded on re-insurance has been reclassified from expenses pertaining to insurance business and netted off from non-interest income. |
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Non-Interest Expense |
Year Ended March 31, | ||||||||||||||||
2006/2005 | ||||||||||||||||
2005 | 2006 | 2006 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Payments to and provisions for employees | Rs. 10,908 | Rs. 17,112 | US$ | 397 | 56.9 | % | ||||||||||
Depreciation on own property | 3,283 | 3,908 | 91 | 19.0 | ||||||||||||
Auditor’s fees and expenses | 36 | 43 | 1 | 20.4 | ||||||||||||
Other administrative expenses | 18,549 | 26,563 | 616 | 43.2 | ||||||||||||
Operating expenses | 32,776 | 47,626 | 1,105 | 45.3 | ||||||||||||
Direct marketing agency expenses | 8,755 | 11,912 | 276 | 36.1 | ||||||||||||
Depreciation on leased assets | 2,975 | 2,771 | 64 | (6.9 | ) | |||||||||||
Expenses pertaining to insurance business(1) | 26,361 | 43,389 | 1007 | 64.6 | ||||||||||||
Total non-interest expenses | Rs. 70,867 | Rs. 105,698 | US$ | 2,452 | 49.1 | % | ||||||||||
(1) | The amount of premium ceded on re-insurance has been reclassified from expenses pertaining to insurance business and netted off from non-interest income. |
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Provisions for Non-performing Assets and Restructured Loans |
At March 31, | ||||||||||||||||
2006/2005 | ||||||||||||||||
2005 | 2006 | 2006 | % change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Gross restructured loans(1) | Rs. 65,623 | Rs. 55,463 | US$ | 1,287 | (15.5 | )% | ||||||||||
Provisions for restructured loans(1) | (2,991 | ) | (2,305 | ) | (53 | ) | (22.9 | ) | ||||||||
Net restructured loans | 62,632 | 53,158 | 1,234 | (15.1 | ) | |||||||||||
Gross non-performing assets | 34,973 | 23,086 | 536 | (34.0 | ) | |||||||||||
Provisions for non-performing assets(2) | (14,890 | ) | (12,280 | ) | (285 | ) | (17.5 | ) | ||||||||
Net non-performing assets | 20,083 | 10,806 | 251 | (46.2 | ) | |||||||||||
Gross restructured loans and non-performing assets | 100,596 | 78,549 | 1,822 | (21.9 | ) | |||||||||||
Provision for restructured loans and non-performing assets(3) | (17,881 | ) | (14,585 | ) | (338 | ) | (18.4 | ) | ||||||||
Net restructured loans and non-performing assets | 82,715 | 63,964 | 1,484 | (22.7 | ) | |||||||||||
Gross customer assets | 1,049,164 | 1,638,525 | 38,017 | 56.2 | ||||||||||||
Net customer assets | 1,029,299 | 1,622,675 | 37,649 | 57.6 | ||||||||||||
Gross restructured loans as a percentage of gross customer assets | 6.3 | % | 3.4 | % | ||||||||||||
Gross non-performing assets as a percentage of gross customer assets | 3.3 | 1.4 | ||||||||||||||
Net restructured loans as a percentage of net customer assets | 6.1 | 3.3 | ||||||||||||||
Net non-performing assets as a percentage of net customer assets | 2.0 | 0.7 | ||||||||||||||
Provisions on restructured loans as a percentage of gross restructured assets | 4.6 | 4.2 | ||||||||||||||
Provisions on non-performing assets as a percentage of gross non-performing assets | 42.6 | 53.2 | ||||||||||||||
Provisions as a percentage of gross customer assets(4) | 2.1 | 1.3 |
(1) | Includes debentures. |
(2) | Includes interest suspense. |
(3) | Excludes technical write-offs. |
(4) | Includes provision against continuing restructured loans, loans classified as non-performing assets and general provision on performing assets as required by the Reserve Bank of India. |
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Year Ended March 31, | ||||||||||||||||
2006/2005 | ||||||||||||||||
2005 | 2006 | 2006 | % Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Provisions for investments (including credit substitutes)(net) | Rs. 2,668 | Rs. 134 | US$ | 3 | (95.0 | )% | ||||||||||
Provision for non-performing assets | 692 | 4,689 | 108 | 577.6 | ||||||||||||
Provision for standard assets | (1,582 | ) | 3,428 | 80 | 316.7 | |||||||||||
Others | 86 | 204 | 5 | 136.7 | ||||||||||||
Total provisions and contingencies (excluding tax) | Rs. 1,864 | Rs. 8,455 | US$ | 196 | 353.5% | |||||||||||
(1) | We do not distinguish between provisions and write-offs while assessing the adequacy of our loan loss coverage, as both provisions and write-offs represents a reduction of the principal amount of a non-performing asset. In compliance with regulations governing the presentation of financial information by banks, gross non-performing assets are reported gross of provisions net of cumulative write-offs in our financial statements. |
Tax Expense |
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Financial Condition |
Assets |
At March 31, | ||||||||||||||||
2006/2005 | ||||||||||||||||
% | ||||||||||||||||
2005 | 2006 | 2006 | Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Cash and cash equivalents | Rs. 136,277 | Rs. 182,551 | US$ | 4,236 | 34.0 | % | ||||||||||
Investments | 546,516 | 840,139 | 19,493 | 53.7 | ||||||||||||
Advances (net of provisions) | 964,100 | 1,562,603 | 36,255 | 62.1 | ||||||||||||
Fixed assets | 41,782 | 41,429 | 961 | (0.8 | ) | |||||||||||
Other assets | 95,662 | 145,574 | 3,377 | 52.2 | ||||||||||||
Total assets | Rs. 1,784,337 | Rs. 2,772,296 | US$ | 64,322 | 55.4 | % | ||||||||||
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Liabilities and Stockholders’ Equity |
At March 31, | ||||||||||||||||
2006/2005 | ||||||||||||||||
% | ||||||||||||||||
2005 | 2006 | 2006 | Change | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Deposits | Rs. 1,011,086 | Rs. 1,724,510 | US$ | 40,012 | 70.6 | % | ||||||||||
Borrowings | 383,690 | 450,000 | 10,441 | 17.3 | ||||||||||||
Other liabilities(1) | 254,601 | 360,310 | 8,360 | 41.5 | ||||||||||||
Proposed dividend (including corporate dividend tax) | 7,193 | 8,809 | 204 | 22.5 | ||||||||||||
Minority interest | 1,525 | 2,749 | 64 | 80.3 | ||||||||||||
Total liabilities | 1,658,095 | 2,546,378 | 59,081 | 53.6 | ||||||||||||
Equity share capital | 7,368 | 8,898 | 206 | 20.8 | ||||||||||||
Preference share capital | 3,500 | 3,500 | 81 | 0.0 | ||||||||||||
Reserves and surplus | 115,374 | 213,520 | 4,954 | 85.1 | ||||||||||||
Total liabilities (including capital and reserves) | Rs. 1,784,337 | Rs. 2,772,296 | US$ | 64,322 | 55.4 | % | ||||||||||
(1) | Includes subordinated debt. |
Foreign Exchange and Derivative Contracts |
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Notional Principal Amounts | Balance Sheet Credit Exposure(1) | |||||||||||||||||||||||||||||||
At March 31 | At March 31 | |||||||||||||||||||||||||||||||
2005 | 2006 | 2007 | 2007 | 2005 | 2006 | 2007 | 2007 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Interest rate products: | ||||||||||||||||||||||||||||||||
Swap agreements | Rs. 1,737,555 | Rs 2,720,713 | Rs 3,454,593 | US$ | 80,153 | Rs. 439 | Rs. 2,800 | Rs. 10,595 | US$ | 246 | ||||||||||||||||||||||
Others | 89,502 | 49,390 | 1,044 | 24 | (52 | ) | 18 | — | — | |||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||
Total interest rate products | Rs. 1,827,057 | Rs. 2,770,103 | Rs. 3,455,637 | US$ | 80,177 | Rs. 387 | Rs. 2,818 | Rs. 10,595 | US$ | 246 | ||||||||||||||||||||||
Foreign exchange products: | ||||||||||||||||||||||||||||||||
Forward contracts | Rs. 714,653 | Rs. 919,149 | Rs. 248,088 | US$ | 5,756 | Rs. 1,012 | Rs. 1,987 | Rs. 1,140 | US$ | 26 | ||||||||||||||||||||||
Swap agreements | 25,194 | 1,005,899 | 23,339 | — | 51 | 750 | 17 | |||||||||||||||||||||||||
Others | 79,178 | 254,882 | 822,707 | 19,088 | 93 | 446 | (620 | ) | (14 | ) | ||||||||||||||||||||||
Total foreign exchange products | Rs. 793,831 | Rs. 1,199,225 | Rs. 2,076,694 | US$ | 48,183 | Rs. 1,105 | Rs. 2,484 | Rs. 1,270 | US$ | 29 | ||||||||||||||||||||||
(1) | Denotes themark-to-market impact of the derivative and foreign exchange products on the reporting date. |
Securitization |
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Loan Commitments |
Capital Commitments |
Operating Lease Commitments |
(In | ||||
Lease rental commitments for fiscal | millions) | |||
2008 | Rs. 987 | |||
2009 | 920 | |||
2010 | 818 | |||
2011 | 698 | |||
2012 | 565 | |||
Thereafter | 1,352 | |||
Total minimum lease commitments | Rs. 5,520 | |||
Guarantees |
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At March 31, | ||||||||||||||||||||||||
2006/2005 | 2007/2006 | |||||||||||||||||||||||
% | % | |||||||||||||||||||||||
2005 | 2006 | Change | 2007 | 2007 | Change | |||||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||||
Financial guarantees(1) | Rs. 61,848 | Rs. 68,660 | 12 | % | Rs. 116,303 | US$ | 2,698 | 69.4 | % | |||||||||||||||
Performance guarantees(2) | 99,808 | 133,079 | 33 | % | 195,272 | 4,531 | 46.7 | % | ||||||||||||||||
Total guarantees | Rs. 161,656 | Rs. 201,739 | 25 | % | Rs. 311,575 | US$ | 7,229 | 54.4 | % | |||||||||||||||
(1) | Consists of instruments guaranteeing the timely contractual payment of loan obligations, primarily to foreign lenders on behalf of project companies. |
(2) | Consists of instruments guaranteeing the performance by a company of an obligation, such as exports. |
Payments due by period | |||||||||||||||||||||
Less than | More than | ||||||||||||||||||||
Contractual Obligations | Total | 1 Year | 1-3 Years | 3-5 Years | 5 Years | ||||||||||||||||
(In millions) | |||||||||||||||||||||
Long-term debt obligations | Rs. 645,924 | Rs. 76,536 | Rs. 220,888 | Rs. 160,396 | Rs. 188,104 | ||||||||||||||||
Operating lease obligations | 5,520 | 987 | 1,738 | 1,263 | 1,532 | ||||||||||||||||
Guarantees | |||||||||||||||||||||
Financial guarantees | 116,303 | 65,739 | 35,559 | 8,726 | 6,279 | ||||||||||||||||
Performance guarantees | 195,272 | 72,833 | 89,803 | 26,676 | 5,960 | ||||||||||||||||
Total | Rs. 963,019 | Rs. 216,095 | Rs. 347,988 | Rs. 197,061 | Rs. 201,875 | ||||||||||||||||
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At March 31, | ||||||||||||
2006 | 2007 | 2007 | ||||||||||
(In millions) | ||||||||||||
Tier 1 capital | Rs. 191,815 | Rs. 215,033 | US$ | 4,989 | ||||||||
Tier 2 capital | 86,611 | 123,929 | 2,875 | |||||||||
Total capital | Rs. 278,426 | Rs. 338,962 | US$ | 7,864 | ||||||||
On-balance sheet risk weighted assets | Rs. 1,557,236 | Rs. 2,132,643 | US$ | 49,481 | ||||||||
Off-balance sheet risk weighted assets | 528,700 | 767,288 | 17,803 | |||||||||
Total risk weighted assets | Rs. 2,085,936 | Rs. 2,899,931 | US$ | 67,284 | ||||||||
Tier 1 capital adequacy ratio | 9.20 | % | 7.42 | % | ||||||||
Tier 2 capital adequacy ratio | 4.15 | % | 4.27 | % | ||||||||
Total capital adequacy ratio | 13.35 | % | 11.69 | % | ||||||||
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Moody’s | ||||||||||||||||||||||||
Credit Analysis & | Investor | Standard & | ||||||||||||||||||||||
Instrument | ICRA | Research Limited | CRISIL | Services | Poor’s | JCRA | ||||||||||||||||||
Lower Tier II capital bonds | AAA | AAA | AAA | — | — | — | ||||||||||||||||||
Upper Tier II debt | — | AAA | AAA | Baa2 | BB | — | ||||||||||||||||||
Tier I perpetual debt | — | AAA | AAA | Baa2 | BB | — | ||||||||||||||||||
Term deposits | AAA | AAA | AAA | — | — | — | ||||||||||||||||||
Certificates of deposits | A1+ | PR1+ | — | — | — | — | ||||||||||||||||||
Long-term foreign currency borrowings | — | — | — | Baa2 | BBB- | BBB | ||||||||||||||||||
Global local currency borrowings | — | — | — | A2/P-1 | — | — | ||||||||||||||||||
Short term foreign currency ratings | — | — | — | Ba2/ Not Prime | A-3 | — |
Cost at March 31, | Additions/ | Deletions/ | ||||||||||||||||||||||
2004 | transfers | transfers | Depreciation | |||||||||||||||||||||
Fiscal 2005 | ||||||||||||||||||||||||
Net assets at March | ||||||||||||||||||||||||
31, 2005 | ||||||||||||||||||||||||
) | ||||||||||||||||||||||||
(In millions | ||||||||||||||||||||||||
Premises | Rs. 17,092 | Rs. 2,619 | Rs. (126 | ) | Rs. 1,650 | Rs. 17,935 | US$ | 416 | ||||||||||||||||
Other fixed assets (including furniture and fixes) | 14,590 | 3,480 | (261 | ) | 8,511 | 9,298 | 216 | |||||||||||||||||
Assets given on lease | 20,736 | 213 | (525 | ) | 5,875 | 14,549 | 338 | |||||||||||||||||
Total | Rs. 52,418 | Rs. 6,312 | Rs. (912 | ) | Rs. 16,036 | Rs. 41,782 | US$ | 970 | ||||||||||||||||
Cost at March 31, | Additions/ | Deletions/ | ||||||||||||||||||||||
2005 | transfers | transfers | Depreciation | |||||||||||||||||||||
Fiscal 2006 | ||||||||||||||||||||||||
Net assets at March | ||||||||||||||||||||||||
31, 2006 | ||||||||||||||||||||||||
) | ||||||||||||||||||||||||
(In millions | ||||||||||||||||||||||||
Premises | Rs. 19,585 | Rs. 1,724 | Rs. (152 | ) | Rs. 2,278 | Rs. 18,879 | US$ | 438 | ||||||||||||||||
Other fixed assets (including furniture and fixes) | 17,809 | 4,915 | (203 | ) | 11,710 | 10,811 | 251 | |||||||||||||||||
Assets given on lease | 20,424 | (1,259 | ) | 7,427 | 11,738 | 272 | ||||||||||||||||||
Total | Rs. 57,818 | Rs. 6,639 | Rs. (1614 | ) | Rs. 21,415 | Rs. 41,428 | US$ | 961 | ||||||||||||||||
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Fiscal 2007 | ||||||||||||||||||||||||
Cost at March 31, | Additions/ | Deletions/ | Net assets at March 31, | |||||||||||||||||||||
2006 | transfers | transfers | Depreciation | 2007 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Premises | Rs. 21,158 | Rs. 3,306 | Rs. (889 | ) | Rs. 3,055 | Rs. 20,520 | US$ | 476 | ||||||||||||||||
Other fixed assets (including furniture and fixes) | 22,521 | 5,832 | (732 | ) | 14,772 | 12,849 | 298 | |||||||||||||||||
Assets given on lease | 19,166 | (820 | ) | 8,314 | 10,032 | 233 | ||||||||||||||||||
Total | Rs. 62,845 | Rs. 9,138 | Rs. (2,441 | ) | Rs. 26,141 | Rs. 43,401 | US$ | 1,007 | ||||||||||||||||
Segment Revenues and Assets |
Consumer and Commercial Banking Segment |
Fiscal 2007 compared to Fiscal 2006 |
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Fiscal 2006 compared to Fiscal 2005 |
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Investment Banking Segment |
Fiscal 2007 compared to Fiscal 2006 |
Fiscal 2006 compared to Fiscal 2005 |
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Insurance Segment |
Fiscal 2007 compared to Fiscal 2006 |
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Fiscal 2006 compared to Fiscal 2005 |
Others Segment |
Fiscal 2007 compared to Fiscal 2006 |
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Fiscal 2006 compared to Fiscal 2005 |
Related party transactions |
Interest received |
Purchase of investments |
Dividend paid |
Remuneration to whole-time directors |
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Key Management Personnel(1) | ||||||||||||
Items/ Related Party | 2007 | 2006 | 2005 | |||||||||
(In millions) | ||||||||||||
Deposits with ICICI Bank | Rs. 80 | Rs. 25 | Rs. 37 | |||||||||
Advances | 21 | 15 | 19 | |||||||||
Investments of related parties in ICICI Bank | 14 | 4 | 2 |
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Accounting for Investments |
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Provisions/write-offs on loans and other credit facilities |
Transfer and servicing of assets |
US GAAP |
Fair value measurement |
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Accounting for servicing of financial assets |
Hybrid financial instruments |
Accounting for uncertainty in Income Taxes |
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Percentage of Total | |||||||||
Equity Shares | Number of Equity | ||||||||
Outstanding | Shares Held | ||||||||
Government-controlled shareholders: | |||||||||
Life Insurance Corporation of India | 7.63 | 68,877,253 | |||||||
General Insurance Corporation of India and government-owned general insurance companies | 3.86 | 34,915,794 | |||||||
Other government-controlled institutions, corporations and banks | 0.62 | 5,529,247 | |||||||
Total government-controlled shareholders | 12.11 | 109,322,294 | |||||||
Other Indian investors: | |||||||||
Individual domestic investors(1)(2) | 6.55 | 59,169,907 | |||||||
Indian corporates and others(1)(2) | 5.62 | 50,753,862 | |||||||
Mutual funds and banks (other than government-controlled banks) | 4.59 | 41,384,714 | |||||||
Total other Indian investors | 16.76 | 151,308,483 | |||||||
Total Indian investors | 28.87 | 260,630,777 | |||||||
Foreign investors: | |||||||||
Deutsche Bank Trust Company Americas, as depositary | 24.95 | 225,255,320 | |||||||
Allamanda Investments Pte Limited | 7.34 | 66,234,627 | |||||||
Other foreign institutional investors, foreign banks, overseas corporate bodies and non-resident Indians (excluding Allamanda Investments Pte Limited)(1)(2) | 38.84 | 350,736,657 | |||||||
Total foreign investors | 71.13 | 642,226,604 | |||||||
Total | 100.00 | 902,857,381 | |||||||
(1) | Executive officers and directors as a group held about 0.5% of the equity shares as of this date. |
(2) | No single shareholder in this group owned 5.0% or more of ICICI Bank’s equity shares as of this date. |
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• | focus on quality growth opportunities by: |
• | maintaining and enhancing our strong retail franchise; | |
• | maintaining and enhancing our strong corporate franchise; | |
• | building an international presence; | |
• | building a rural banking franchise; and | |
• | strengthening our insurance and asset management businesses. |
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• | emphasize conservative risk management practices and enhance asset quality; | |
• | use technology for competitive advantage; and | |
• | attract and retain talented professionals. |
Commercial Banking for Retail Customers |
Retail Lending Activities |
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At Year-End Fiscal 2006 | At Year-End Fiscal 2007 | |||||||||||||||
Rs. (In billion) | US$ (In million) | Rs. (In billion) | US$ (In million) | |||||||||||||
Home loans(1) | Rs. 505.1 | US$ | . 11,720 | Rs. 703.5 | US$ | 16,323 | ||||||||||
Automobile loans | 188.7 | 4,379 | 191.9 | 4,453 | ||||||||||||
Commercial business | 120.5 | 2,796 | 202.2 | 4,691 | ||||||||||||
Personal loans | 61.1 | 1,418 | 125.3 | 2,906 | ||||||||||||
Credit card receivables | 35.4 | 822 | 60.8 | 1,411 | ||||||||||||
Two wheeler loans | 21.0 | 487 | 23.3 | 540 | ||||||||||||
Others(2) | 49.7 | 1,152 | 57.5 | 1,334 | ||||||||||||
Total | 981.6 | 22,774 | 1,364.5 | 31,658 | ||||||||||||
(1) | Includes developer financing (Rs. 45.9 billion (US$1,065 million) at year-end fiscal 2007). |
(2) | Includes dealer funding (Rs. 33.2 billion (US$770 million) at year-end fiscal 2007). |
Lending to Small Enterprises |
Retail Deposits |
Bond Issues |
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Other Fee-Based Products and Services |
Commercial Banking for Corporate Customers |
Corporate Loan Portfolio |
Fee and Commission-Based Activities |
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Corporate Deposits |
Foreign Exchange and Derivatives |
Foreign exchange products |
Foreign exchange and interest rate derivatives |
Bullion and commodities |
Commercial Banking for Rural and Agricultural Customers |
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Commercial Banking for International Customers |
• | Money2India: an Internet-based wire transfer remittance facility. We are a large player in the Indian remittance market. According to Reserve Bank of India data, the aggregate private transfers to and from India during fiscal 2006 were US$24.6 billion. For easy transfer of funds to India, we offer a suite of online as well as offline money transfer products featured on our website www.money2India.com. These speedy, cost effective and convenient products enable non-resident Indians to send money to any bank at over 18,000 locations in India. During the nine months ended December 31, 2006, we had a market share of over 25.0% in all inward remittances to India. | |
• | TradeWay: an Internet-based documentary collection product to provide correspondent banks access to real-time on line information on the status of their export bills collections routed through us. | |
• | Remittance Tracker: an Internet-based application that allows a correspondent bank to query on the status of their payment instructions and also to get various information reports online. | |
• | Offshore banking deposits: multi-currency deposit products in US dollar, pound sterling and euro. | |
• | Foreign currency non-resident deposits: deposits offered in four main currencies — US dollar, pound sterling, euro and yen. | |
• | Non-resident external fixed deposits: deposits maintained in Indian rupees. | |
• | Non-resident external savings account: savings accounts maintained in Indian rupees. | |
• | Non-resident ordinary savings accounts and non-resident ordinary fixed deposits. |
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Delivery Channels |
At March 31, 2007 | ||||||||
Number of | ||||||||
Branches and | % of | |||||||
Extension Counters | Total | |||||||
Metropolitan/urban | 478 | 63 | % | |||||
Semi-urban/rural | 277 | 37 | % | |||||
Total branches and extension counters1 | 755 | 100.0 | % | |||||
Investment Banking |
Treasury |
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At March 31(1) | ||||||||||||||||
2005 | 2006 | 2007 | 2007 | |||||||||||||
(In millions) | ||||||||||||||||
Government securities | Rs. 13,691 | Rs. 16,806 | Rs. 30,070 | US$ | 698 | |||||||||||
Securities purchased under agreement to resell | 24,000 | 40,000 | 1,057 | 25 | ||||||||||||
Bonds and debentures(2) | 5,556 | 18,247 | 60,149 | 1,396 | ||||||||||||
Equity shares | 4,783 | 6,232 | 5,688 | 132 | ||||||||||||
Mutual funds | 37,957 | 35,624 | 34,447 | 799 | ||||||||||||
Total | Rs. 85,987 | Rs. 116,909 | Rs. 131,411 | US$ | 3,050 | |||||||||||
(1) | Excludes assets held to cover linked liabilities of our life insurance business amounting to Rs. 130,100 million (US$3.0 billion) for fiscal 2007, Rs. 70,788 million for fiscal 2006 and Rs. 26,541 million for fiscal 2005. |
(2) | Includes mortgage backed securities. |
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Year Ended March 31, | ||||||||||||||||
2005 | 2006 | 2007 | 2007 | |||||||||||||
(In millions) | ||||||||||||||||
Interest and dividends on trading portfolio | Rs. 1,904 | Rs. 3,137 | Rs. 7,402 | US$ | 172 | |||||||||||
Gain on sale of trading portfolio | 1,239 | 1,979 | 676 | 16 | ||||||||||||
Unrealized gain/(loss) on trading portfolio | (85 | ) | (162 | ) | (86 | ) | (2 | ) | ||||||||
Total | Rs. 3,058 | Rs. 4,954 | Rs. 7,992 | US$ | 186 | |||||||||||
At March 31, 2005 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | Fair Value | |||||||||||||
(In millions) | ||||||||||||||||
Corporate debt securities | Rs. 19,203 | Rs. 1,342 | Rs. (177 | ) | Rs. 20,368 | |||||||||||
Government securities | 34,005 | — | (1 | ) | 34,004 | |||||||||||
Other securities(1) | 6,562 | 52 | (3 | ) | 6,611 | |||||||||||
Total debt investments | 59,770 | 1,394 | (181 | ) | 60,983 | |||||||||||
Equity shares | 19,802 | 5,619 | (990 | ) | 24,431 | |||||||||||
Other investments(2) | 34,766 | 3,109 | (539 | ) | 37,336 | |||||||||||
Total | Rs. 114,338 | Rs. 10,122 | Rs. (1,710 | ) | Rs. 122,750 | |||||||||||
(1) | Includes credit linked notes. |
(2) | Includes preference shares, mutual fund units, venture fund units, security receipts and pass through certificates. |
At March 31, 2006 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | Fair Value | |||||||||||||
(In millions) | ||||||||||||||||
Corporate debt securities | Rs. 34,424 | Rs. 238 | Rs. (502 | ) | Rs. 34,160 | |||||||||||
Government securities | 116,024 | — | — | 116,024 | ||||||||||||
Other securities(1) | 12,947 | 22 | (19 | ) | 12,950 | |||||||||||
Total debt securities | 163,395 | 260 | (521 | ) | 163,134 | |||||||||||
Equity shares | 23,056 | 7,024 | (1,191 | ) | 28,889 | |||||||||||
Other investments(2) | 63,460 | 3,833 | (1,090 | ) | 66,203 | |||||||||||
Total | Rs. 249,911 | Rs. 11,117 | Rs. (2,802 | ) | Rs. 258,226 | |||||||||||
(1) | Includes credit linked notes. |
(2) | Includes preference shares, mutual fund units, venture fund units, security receipts and pass through certificates. |
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At March 31, 2007 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | Fair Value | |||||||||||||
(In millions) | ||||||||||||||||
Corporate debt securities | Rs. 87,166 | Rs. 305 | Rs. (1,012 | ) | Rs. 86,459 | |||||||||||
Government securities | 167,670 | 4 | (48 | ) | 167,626 | |||||||||||
Other securities(1) | 77,650 | 596 | (463 | ) | 77,783 | |||||||||||
Total debt securities | 332,486 | 905 | (1,523 | ) | 331,868 | |||||||||||
Equity shares | 24604 | 12,659 | (2,147 | ) | 35,116 | |||||||||||
Other investments(2) | 42346 | 2,854 | (945 | ) | 44,255 | |||||||||||
Total | Rs. 399,436 | Rs. 16,418 | Rs. (4,615 | ) | Rs. 411,239 | |||||||||||
(1) | Includes credit linked notes |
(2) | Includes preference shares, mutual fund units, venture fund units, security receipts and pass through certificates. |
Year Ended March 31, | ||||||||||||||||
2005 | 2006 | 2007 | 2007 | |||||||||||||
(In millions) | ||||||||||||||||
Interest | Rs. 8,901 | Rs. 6,970 | Rs. 14,976 | US$ | 347 | |||||||||||
Dividend | 925 | 1,746 | 2,749 | 64 | ||||||||||||
Total | Rs. 9,826 | Rs. 8,716 | Rs. 17,725 | US$ | 411 | |||||||||||
Gross realized gain | Rs. 5,815 | Rs. 9,509 | Rs. 14,045 | 326 | ||||||||||||
Gross realized loss | (1,838 | ) | (1,258 | ) | (4,634 | ) | (108 | ) | ||||||||
Total | Rs. 3,977 | Rs. 8,251 | Rs. 9,411 | US$ | 218 | |||||||||||
At March 31, 2007 | ||||||||||||||||||||||||||||||||
Up to One Year | One to Five Years | Five to 10 Years | More Than 10 Years | |||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Corporate debt securities | Rs. 1,442 | 10.6 | % | Rs. 56,479 | 5.4 | % | Rs. 25,639 | 5.2 | % | Rs. 3,606 | 7.6 | % | ||||||||||||||||||||
Government of India securities | 157,863 | 6.8 | % | 5,607 | 6.9 | % | 4,200 | 7.7 | % | — | ||||||||||||||||||||||
Other securities | 12,114 | 6.5 | % | 50,689 | 8.4 | % | 14,847 | 8.3 | % | |||||||||||||||||||||||
Total amortized cost of interest-earning securities | Rs. 171,419 | 6.8 | % | Rs. 112,775 | 6.8 | % | Rs. 44,685 | 6.4 | % | Rs. 3,606 | 7.6 | % | ||||||||||||||||||||
Total fair value | Rs. 171,514 | Rs. 112,913 | Rs. 44,096 | Rs. 3,345 | ||||||||||||||||||||||||||||
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ICICI Securities Primary Dealership and ICICI Securities Limited |
Venture capital and private equity |
Insurance |
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Year Ended March 31, | ||||||||||||||||||||||||
2005 | 2006 | 2007 | ||||||||||||||||||||||
Amount | % to Total | Amount | % to Total | Amount | % to Total | |||||||||||||||||||
(In billions, except percentages) | ||||||||||||||||||||||||
Current account deposits | Rs. 125.9 | 12.5 | % | Rs. 163.9 | 9.5 | % | Rs. 214.5 | 8.6 | % | |||||||||||||||
Savings deposits | 116.6 | 11.5 | 242.6 | 14.1 | 375.3 | 15.1 | ||||||||||||||||||
Time deposits | 768.6 | 76.0 | 1,318.0 | 76.4 | 1,896.3 | 76.3 | ||||||||||||||||||
Total deposits | Rs. 1,011.1 | 100.0 | % | Rs. 1,724.5 | 100.0 | % | Rs. 2,486.1 | 100.0 | % | |||||||||||||||
Year Ended March 31,(1) | ||||||||||||||||||||||||||||||
2005 | 2006 | 2007 | ||||||||||||||||||||||||||||
Amount | Cost(2) | Amount | Amount | Amount | Cost(2) | |||||||||||||||||||||||||
Cost(2) | ||||||||||||||||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||
Savings deposits | Rs. 98,111 | 2.3 | % | Rs. 171,658 | 2.6 | % | Rs. 327,726 | US$ | 7,604 | 3.1 | % | |||||||||||||||||||
Time deposits | 583,332 | 5.2 | 940,272 | 5.9 | 1,512,914 | 35,102 | 7.6 | |||||||||||||||||||||||
Non-interest-bearing deposits: | ||||||||||||||||||||||||||||||
Other demand deposits | 87,082 | — | 142,849 | — | 174,354 | 4,045 | — | |||||||||||||||||||||||
Total deposits | Rs. 768,525 | 4.2 | % | Rs. 1,254,779 | 4.8 | % | Rs. 2,014,994 | US$ | 46,751 | 6.2 | % | |||||||||||||||||||
(1) | Average of quarterly balances at the end of March of the previous fiscal year and June, September, December and March of that fiscal year. |
(2) | Represents interest expense divided by the average of quarterly balances. |
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At March 31, 2007 | |||||||||||||||||
After One Year | |||||||||||||||||
and Within | After | ||||||||||||||||
Up to One Year | Three Years | Three Years | Total | ||||||||||||||
(In millions) | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Savings deposits | Rs. | 375,330 | Rs. | — | Rs. | — | Rs. | 375,330 | |||||||||
Time deposits | 1,634,169 | 178,151 | 83,986 | 1,896,306 | |||||||||||||
Non-interest-bearing deposits: | |||||||||||||||||
Other demand deposits | 214,500 | — | — | 214,500 | |||||||||||||
Total deposits | Rs. | 2,223,999 | Rs. | 178,151 | Rs. | 83,986 | Rs. | 2,486,136 | |||||||||
Year Ended March 31,(1) | ||||||||||||||||||||||||||||
2005 | 2006 | 2007 | ||||||||||||||||||||||||||
Amount | % to Total | Amount | % to Total | Amount | Amount | % to Total | ||||||||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||||||||
SLR bonds(2) | Rs. | 14,815 | 4.3 | % | Rs. | 14,815 | 4.2 | % | Rs. | 14,815 | US$344 | 4.1 | % | |||||||||||||||
Borrowings from Indian government(3) | 4,689 | 1.4 | 3,581 | 1.0 | 2,568 | 60 | 0.7 | |||||||||||||||||||||
Other borrowings(4)(5) | 321,307 | 94.3 | 331,511 | 94.8 | 345,203 | 8009 | 95.2 | |||||||||||||||||||||
Total | Rs. | 340,811 | 100.0 | % | Rs. | 349,907 | 100.0 | % | Rs. | 362,586 | US$8,413 | 100.0 | % | |||||||||||||||
(1) | Average of quarterly balances at the end of March of the previous fiscal year and June, September, December and March of the concerned fiscal year for each of fiscal years 2005, 2006 and 2007. |
(2) | With an average cost of 11.6% in fiscal 2005, 11.6% in fiscal 2006 and 11.6% in fiscal 2007. |
(3) | With an average cost of 10.3% in fiscal 2005, 10.8% in fiscal 2006 and 11.8% in fiscal 2007. |
(4) | With an average cost of 9.1% in fiscal 2005, 9.3% in fiscal 2006 and 9.4% in fiscal 2007. |
(5) | Includes publicly and privately placed bonds, borrowings from institutions and wholesale deposits such as inter-corporate deposits, certificate of deposits and call borrowings. |
At March 31, | ||||||||||||
% of Total | ||||||||||||
2007 | Deposits | |||||||||||
(In millions, except percentages) | ||||||||||||
Less than three months | Rs. | 454,432 | US$ | 10,544 | 18.3 | % | ||||||
Above three months and less than six months | 261,666 | 6,071 | 10.5 | % | ||||||||
Above six months and less than 12 months | 562,091 | 13,042 | 22.6 | % | ||||||||
More than 12 months | 133,753 | 3,103 | 5.4 | % | ||||||||
Total deposits of Rs. 10 million and more | Rs. | 1,411,942 | US$ | 32,760 | 56.8 | % | ||||||
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At March 31,(1) | ||||||||||||
2005 | 2006 | 2007 | ||||||||||
(In millions, except percentages) | ||||||||||||
Year-end balance | Rs. 80,711 | Rs. 106,542 | Rs. 121,567 | |||||||||
Average balance during the year(2) | 50,150 | 84,910 | 101,652 | |||||||||
Maximum quarter-end balance | 80,711 | 106,542 | 123,495 | |||||||||
Average interest rate during the year(3) | 5.8 | % | 7.8 | % | 7.8 | % | ||||||
Average interest rate at year-end(4) | 5.9 | % | 7.3 | % | 8.8 | % |
(1) | Short-term borrowings includes borrowings in the call market and repurchase agreements. |
(2) | Average of quarterly balances at the end of March of the previous fiscal year, June, September, December and March of that fiscal year for each of fiscal 2005, 2006 and 2007. |
(3) | Represents the ratio of interest expense on short-term borrowings to the average of quarterly balances of short-term borrowings. |
(4) | Represents the weighted average rate of the short-term borrowings outstanding at fiscal year-end. |
At March 31,(1) | ||||||||||||||||||||||||||||
2005 | 2006 | 2007 | ||||||||||||||||||||||||||
% to | % to | % to | ||||||||||||||||||||||||||
Amount | Total | Amount | Total | Amount | Amount | Total | ||||||||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||||||||
Commercial borrowings(2) | Rs. 86,886 | 77.6 | % | Rs. 166,524 | 87.4 | % | Rs. 306,136 | US$ | 7,103 | 92.8 | % | |||||||||||||||||
Multilateral borrowings(3) | 25,080 | 22.4 | 24,034 | 12.6 | 23,740 | 551 | 7.2 | |||||||||||||||||||||
Total | Rs. 111,966 | 100.0 | % | Rs. 190,558 | 100.0 | % | Rs. 329,876 | US$ | 7,654 | 100.0 | % | |||||||||||||||||
(1) | Average of quarterly balances at the end of March of the previous fiscal year, June, September, December and March of that fiscal year for each of fiscal 2005, 2006 and 2007. |
(2) | With an average cost of 3.7% in fiscal 2005, 4.6% in fiscal 2006 and 5.4% in fiscal 2007. |
(3) | With an average cost of 3.2% in fiscal 2005, 4.0% in fiscal 2006 and 5.1% in fiscal 2007. |
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Credit Risk |
Credit Risk Assessment Procedures for Corporate Loans |
• | the financial position of the borrower by analyzing the quality of its financial statements, its past financial performance, its financial flexibility in terms of ability to raise capital and its cash flow adequacy; | |
• | the borrower’s relative market position and operating efficiency; and | |
• | the quality of management by analyzing their track record, payment record and financial conservatism. |
• | certain industry characteristics, such as the importance of the industry to the economy, its growth outlook, cyclicality and government policies relating to the industry; | |
• | the competitiveness of the industry; and | |
• | certain industry financials, including return on capital employed, operating margins and earnings stability. |
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Project Finance Procedures |
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Corporate Finance Procedures |
• | carrying out a detailed analysis of cash flows to accurately forecast the amounts that will be paid and the timing of the payments based on an exhaustive analysis of historical data; | |
• | conducting due diligence on the underlying business systems, including a detailed evaluation of the servicing and collection procedures and the underlying contractual arrangements; and | |
• | paying particular attention to the legal, accounting and tax issues that may impact any structure. |
• | assessment of the industry structure in the target’s host country and the complexity of the business operations of the target; | |
• | financial, legal, tax, technical due diligence (as applicable) of the target; | |
• | appraisal of potential synergies and likelihood of their being achieved; | |
• | assessment of the target company’s valuation by comparison with its peer group and other transactions in the industry; | |
• | analysis of regulatory and legal framework of the overseas geographies with regard to security creation, enforcement and other aspects; | |
• | assessment of country risk aspects and the need for political insurance; and | |
• | the proposed management structure of the target post takeover and the ability and past experience of the acquirer in completing post merger integration. |
Working Capital Finance Procedures |
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Credit Monitoring Procedures for Corporate Loans |
Retail Loan Procedures |
S-101
Table of Contents
Small Enterprises Loan Procedures |
Rural and Agricultural Loan Procedures |
S-102
Table of Contents
Credit Approval Authorities |
Quantitative and Qualitative Disclosures About Market Risk |
Market Risk Management Procedures |
Interest Rate Risk |
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At March 31, 2007(1) | ||||||||||||||||
Less Than | Greater Than | |||||||||||||||
or Equal to | One Year and Up | Greater Than | ||||||||||||||
One Year | to Five Years | Five Years | Total | |||||||||||||
(In millions) | ||||||||||||||||
Loans, net | Rs. | 1,553,393 | Rs. | 466,929 | Rs. | 93,672 | Rs. | 2,113,994 | ||||||||
Investments | 519,493 | 265,853 | 420,821 | 1,206,167 | ||||||||||||
Fixed assets | 1,851 | 7,982 | 33,568 | 43,401 | ||||||||||||
Other assets(2) | 290,738 | 9,541 | 279,506 | 579,785 | ||||||||||||
Total assets | 2,365,475 | 750,305 | 827,567 | 3,943,347 | ||||||||||||
Stockholders’ equity and preference share capital | — | — | 243,150 | 243,150 | ||||||||||||
Borrowings | 397,839 | 205,478 | 13,278 | 616,595 | ||||||||||||
Deposits | 2,009,101 | 183,722 | 293,313 | 2,486,136 | ||||||||||||
Other liabilities(2) | 48,833 | 23,809 | 524,824 | 597,466 | ||||||||||||
Total liabilities | 2,455,773 | 413,009 | 1,074,565 | 3,943,347 | ||||||||||||
Total gap before risk management positions | (90,298 | ) | 337,296 | (246,998 | ) | — | ||||||||||
Risk management positions(3) | (195,196 | ) | 139,902 | 55,294 | — | |||||||||||
Total gap after risk management positions | Rs. | (285,494 | ) | Rs. | 477,198 | Rs. | (191,704 | ) | — | |||||||
(1) | Assets and liabilities are classified into the applicable categories based on residual maturity orre-pricing whichever is earlier. Classification methodologies are generally based on Asset Liability Management Guidelines issued by the Reserve Bank of India, effective April 1, 2000, and pre-payment assumptions applied, based on behavioural studies done. Items that neither mature norre-price are included in the “greater than five years” category. This includes equity share capital and a substantial part of fixed assets. Impaired loans of residual maturity less than three years are classified in the “greater than one year and up to five years” category and impaired loans of residual maturity between three to five years are classified in the “greater than five years” category. |
(2) | The categorization for these items is different from that reported in the financial statements. |
(3) | The risk management positions comprise foreign currency and rupee swaps. |
At March 31, 2007 | ||||||||||||
Fixed | Variable | |||||||||||
Rate Loans | Rate Loans | Total | ||||||||||
(In millions) | ||||||||||||
Loans | Rs. 828,182 | Rs. 810,308 | Rs. 1,638,490 |
At March 31, 2007 | ||||||||||||||||
Change In Interest Rates | ||||||||||||||||
(In Basis Points) | ||||||||||||||||
(100) | (50) | 50 | 100 | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Rupee portfolio | Rs. (1,128 | ) | Rs. (564 | ) | Rs. 564 | Rs. 1,128 | ||||||||||
Foreign currency portfolio | (5 | ) | (2 | ) | 2 | 5 | ||||||||||
Total | Rs. (1,133 | ) | Rs. (566 | ) | Rs. 566 | Rs. 1,133 | ||||||||||
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Price Risk (Trading book) |
At March 31, 2007 | ||||||||||||||||||||
Change in Interest Rates (in Basis Points) | ||||||||||||||||||||
Portfolio | ||||||||||||||||||||
Size | (100) | (50) | 50 | 100 | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Government of India securities | Rs. | 5,861 | Rs. 229 | Rs. 115 | Rs. (115 | ) | Rs. (229 | ) | ||||||||||||
Corporate debt securities | 5,553 | 61 | 31 | (31 | ) | (61 | ) | |||||||||||||
Total | Rs. | 11,414 | Rs. 290 | Rs. 146 | Rs. (146 | ) | Rs. (290 | ) | ||||||||||||
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Equity Risk |
Exchange Rate Risk |
Liquidity Risk |
S-107
Table of Contents
Operational Risk |
Operational Controls and Procedures in Branches |
Operational Controls and Procedures for Internet Banking |
Operational Controls and Procedures in Regional Processing Centers & Central Processing Centers |
S-108
Table of Contents
Operational Controls and Procedures in Treasury |
Operational Controls and Procedures in Retail Asset Operations |
Operational Controls and Procedures for Corporate Banking |
S-109
Table of Contents
Operational Controls and Procedures in Rural Operations |
Anti money Laundering Controls |
Global risk management framework |
S-110
Table of Contents
Audit |
Legal and Regulatory Risk |
Derivative Instruments Risk |
Risk management in key subsidiaries |
S-111
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S-112
Table of Contents
Loan Portfolio by Categories |
At March 31, | |||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Consumer loans and credit card receivables(1) | Rs. 179,646 | Rs. 281,946 | Rs. 532,138 | Rs. 910,871 | Rs. 1,276,977 | US$ | 29,628 | ||||||||||||||||||
Rupee | 179,646 | 281,494 | 526,541 | 895,116 | 1,248,484 | 28,967 | |||||||||||||||||||
Foreign currency | — | 452 | 5,597 | 15,755 | 28,493 | 661 | |||||||||||||||||||
Commercial, financial, agricultural and others | 397,609 | 393,642 | 447,359 | 665,549 | 859,562 | 19,944 | |||||||||||||||||||
Rupee | 310,876 | 300,985 | 301,800 | 449,160 | 495,464 | 11,496 | |||||||||||||||||||
Foreign currency | 86,733 | 92,657 | 145,559 | 216,389 | 364,098 | 8,448 | |||||||||||||||||||
Leasing and related activities(2) | 1,046 | 1,401 | 885 | 736 | 569 | 13 | |||||||||||||||||||
Rupee | 1,046 | 1,401 | 885 | 695 | 569 | 13 | |||||||||||||||||||
Foreign currency | — | — | — | 41 | — | — | |||||||||||||||||||
Gross loans | 578,301 | 676,989 | 980,382 | 1,577,156 | 2,137,108 | 49,585 | |||||||||||||||||||
Rupee | 491,568 | 583,880 | 829,226 | 1,344,971 | 1,744,517 | 40,776 | |||||||||||||||||||
Foreign currency | 86,733 | 93,109 | 151,156 | 232,185 | 392,591 | 9109 | |||||||||||||||||||
Total gross loans | 578,301 | 676,989 | 980,382 | 1,577,156 | 2,137,108 | 49,585 | |||||||||||||||||||
Allowance for loan losses | (39,212 | ) | (27,510 | ) | (16,282 | ) | (14,553 | ) | (23,114 | ) | (536 | ) | |||||||||||||
Net loans | Rs. 539,089 | Rs. 649,479 | Rs. 964,100 | Rs. 1,562,603 | Rs. 2,113,994 | US$ | 49,049 | ||||||||||||||||||
(1) | Includes home loans, automobile loans, commercial business loans, two wheeler loans, personal loans, credit card receivables and farm equipment loans. |
(2) | Leasing and related activities includes leasing and hire purchase. |
Collateral — Completion, Perfection and Enforcement |
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Loan Concentration |
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As at March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||||||||||||||||||||||||||
(Rs. in millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||
Rs | % | Rs | % | Rs | % | Rs | % | Rs | US$ | % | ||||||||||||||||||||||||||||||||||
Retail finance(1) | 202,320 | 34.9 | % | 360,228 | 53.2 | % | 596,027 | 60.8 | % | 981,550 | 62.2 | % | 1,364,472 | 31,658 | 63.8 | % | ||||||||||||||||||||||||||||
Services — finance | 5,224 | 0.9 | % | 10,632 | 1.6 | % | 27,508 | 2.8 | % | 74,356 | 4.7 | % | 111,500 | 2,587 | 5.2 | % | ||||||||||||||||||||||||||||
Services — non finance | 23,308 | 4.0 | % | 18,099 | 2.7 | % | 18,648 | 1.9 | % | 47,289 | 3.0 | % | 64,342 | 1,493 | 3.0 | % | ||||||||||||||||||||||||||||
Chemicals & fertilizers | 24,624 | 4.3 | % | 21,307 | 3.1 | % | 18,372 | 1.9 | % | 32,241 | 2.1 | % | 53,768 | 1,248 | 2.5 | % | ||||||||||||||||||||||||||||
Iron & steel and products | 66,286 | 11.4 | % | 55,377 | 8.2 | % | 51,557 | 5.3 | % | 51,717 | 3.3 | % | 52,071 | 1,208 | 2.5 | % | ||||||||||||||||||||||||||||
Food & beverages | 13,862 | 2.4 | % | 11,914 | 1.7 | % | 16,956 | 1.7 | % | 41,491 | 2.6 | % | 50,863 | 1,180 | 2.4 | % | ||||||||||||||||||||||||||||
Crude petroleum/ refining & petrochemicals | 29,212 | 5.0 | % | 24,761 | 3.6 | % | 44,422 | 4.5 | % | 46,185 | 2.9 | % | 49,656 | 1,152 | 2.3 | % | ||||||||||||||||||||||||||||
Power | 36,816 | 6.4 | % | 25,223 | 3.7 | % | 18,217 | 1.9 | % | 28,127 | 1.8 | % | 41,917 | 973 | 2.0 | % | ||||||||||||||||||||||||||||
Road, port, telecom, urban development & other infrastructure | 18,698 | 3.2 | % | 20,863 | 3.1 | % | 35,519 | 3.6 | % | 30,114 | 1.9 | % | 29,873 | 693 | 1.4 | % | ||||||||||||||||||||||||||||
Wholesale/ retail trade | 933 | 0.2 | % | 650 | 0.1 | % | 9,867 | 1.0 | % | 14,842 | 1.0 | % | 28,625 | 664 | 1.3 | % | ||||||||||||||||||||||||||||
Electronics & engineering | 34,085 | 5.9 | % | 26,852 | 4.0 | % | 19,742 | 2.0 | % | 24,129 | 1.5 | % | 21,863 | 507 | 1.0 | % | ||||||||||||||||||||||||||||
Metal & products (excluding iron & steel) | 5,392 | 0.9 | % | 10,373 | 1.5 | % | 15,552 | 1.6 | % | 19,335 | 1.2 | % | 10,672 | 248 | 0.5 | % | ||||||||||||||||||||||||||||
Others(2) | 118,926 | 20.5 | % | 91,206 | 13.5 | % | 108,230 | 11.0 | % | 186,006 | 11.8 | % | 257,993 | 5,986 | 12.1 | % | ||||||||||||||||||||||||||||
Gross loans | 579,686 | 100 | % | 677,485 | 100 | % | 980,617 | 100 | % | 1,577,382 | 100 | % | 2,137,615 | 49,597 | 100 | % | ||||||||||||||||||||||||||||
Allowance for loan losses and interest suspense | (40,597 | ) | (28,006 | ) | (16,517 | ) | (14,779 | ) | (23,621 | ) | (548 | ) | ||||||||||||||||||||||||||||||||
Net loans | 539,089 | 649,479 | 964,100 | 1,562,603 | 2,113,994 | 49049 | ||||||||||||||||||||||||||||||||||||||
(1) | Includes home loans, automobile loans, commercial business loans, two wheeler loans, personal loans, credit cards receivables, dealer funding, developer financing and overdraft products. |
(2) | Others primarily include textiles, shipping, construction, manufacturing products (excluding iron & steel), cement, automobiles, drugs & pharmaceuticals, gems & jewellery, fast moving consumer goods, mining. |
Geographic Diversity |
Directed Lending |
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Priority Sector Lending |
At March 30, | ||||||||||||||||
% of Total | ||||||||||||||||
2007 | 2007 | Priority Sector | % of Residual | |||||||||||||
(Rs.) | (US$) | Lending | Net Bank Credit | |||||||||||||
(In millions, except percentages) | ||||||||||||||||
Small scale industries(1) | 3,235 | 75 | 0.6 | % | 0.3 | % | ||||||||||
Others including residential mortgage less than Rs. 1.5 million and small businesses | 379,998 | 8,817 | 66.1 | % | 30.3 | % | ||||||||||
Agricultural sector(2) | 191,337 | 4,439 | 33.3 | % | 15.3 | % | ||||||||||
Total | 574,570 | 13,331 | 100.0 | % | 45.9 | % | ||||||||||
(1) | Small scale industries are defined as manufacturing, processing and services businesses with a limit of Rs. 10.0 million (US$232,019) on investment in plant and machinery |
(2) | Includes direct agriculture lending of Rs. 91.6 billion (US$2.1 billion) constituting 7.3% of our residual net bank credit against the requirement of 13.5% |
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Export Credit |
Housing Finance |
Loan pricing |
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Table of Contents
Standard assets: | Assets that do not disclose any problems or which do not carry more than normal risk attached to the business are classified as standard assets. | |
Sub-standard assets: | Sub-standard assets comprise assets that are non-performing for a period not exceeding 12 months. (18 months until fiscal 2003) | |
Doubtful assets: | Doubtful assets comprise assets that are non-performing for more than 12 months. (18 months until fiscal 2003) | |
Loss assets: | Loss assets comprise assets (i) the losses on which are identified or (ii) that are considered uncollectable. |
Restructured Loans |
Provisioning and Write-Offs |
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Standard assets: | As per the Reserve Bank of India guidelines issued in September 2005, banks were required to make general provision at 0.40% on standard loans (excluding loans to the agriculture sector and to small and medium enterprises). As per the Reserve Bank of India guidelines issued in May 2006, the general provisions for personal loans, loans and advances qualifying as capital market exposure, residential housing loans beyond Rs. 2.0 million and commercial real estate loans was increased to 1.00% from 0.40%. In January 2007, the Reserve Bank of India increased the provisioning requirement in respect of the loans to the real estate sector (excluding residential housing loans), outstanding credit card receivables, loans and advances qualifying as capital market exposure, personal loans and exposures to systemically important non-deposit taking non- banking finance companies to 2.00%. | |
Sub-standard assets: | A provision of 10% is required for all sub-standard assets. An additional provision of 10% is required for accounts that areab initiounsecured. | |
Doubtful assets: | A 100% provision/write-off is required in respect of the unsecured portion of the doubtful asset. Until year-end fiscal 2004, a 20% to 50% provision was required for the secured portion as follows: Up to one year: 20% provision; One to three years: 30% provision; and More than three years: 50% provision. Effective the quarter ended June 30, 2004, a 100% provision is required for assets classified as doubtful for more than three years on or after April 1, 2004. In respect of assets classified as doubtful for more than three years at March 31, 2004, 60% to 100% provision on such secured portion was required as follows: By March 31, 2005: 60% provision; By March 31, 2006: 75% provision; and By March 31, 2007: 100% provision. | |
Loss assets: | The entire asset is required to be written off or provided for. | |
Restructured loans: | A provision equal to the difference between the present values of the future interest as per the original loan agreement and the present values of future interest on the basis of rescheduled terms at the time of restructuring, is required to be made. |
Our policy |
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At March 31, | |||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | |||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||
Commercial, financial, agricultural and others(1) | Rs. 92,875 | Rs. 75,454 | Rs. 65,623 | Rs. 55,463 | Rs. 50,407 | US$ | 1,170 | ||||||||||||||||||
Rupee | 51,439 | 60,796 | 52,245 | 49,582 | 45,965 | 1,067 | |||||||||||||||||||
Foreign currency | 41,436 | 14,658 | 13,378 | 5,881 | 4,442 | 103 | |||||||||||||||||||
Total restructured loans | 92,875 | 75,454 | 65,623 | 55,463 | 50,407 | 1,170 | |||||||||||||||||||
Rupee | 51,439 | 60,796 | 52,245 | 49,582 | 45,965 | 1,067 | |||||||||||||||||||
Foreign currency | 41,436 | 14,658 | 13,378 | 5,881 | 4,442 | 103 | |||||||||||||||||||
Gross restructured loans(3) | 92,875 | 75,454 | 65,623 | 55,463 | 50,407 | 1,170 | |||||||||||||||||||
Provision for loan losses | (3,443 | ) | (9,169 | ) | (2,991 | ) | (2,305 | ) | (1,581 | ) | (37 | ) | |||||||||||||
Net restructured loans | Rs. 89,432 | Rs. 66,285 | Rs. 62,632 | Rs. 53,158 | Rs. 48,826 | US$ | 1,133 | ||||||||||||||||||
Gross customer assets(2) | Rs. 702,331 | Rs. 772,986 | Rs. 1,049,164 | Rs. 1,638,525 | Rs. 2,234,339 | US$ | 51,841 | ||||||||||||||||||
Net customer assets | 651,885 | 736,297 | 1,029,299 | 1,622,675 | 2,209,078 | 51,255 | |||||||||||||||||||
Gross restructured loans as a percentage of gross customer assets | 13.2 | % | 9.8 | % | 6.3 | % | 3.4 | % | 2.3 | % | |||||||||||||||
Net restructured loans as a percentage of net customer assets | 13.7 | % | 9.0 | % | 6.1 | % | 3.3 | % | 2.2 | % |
(1) | Includes working capital finance. |
(2) | Customer assets include loans and credit substitutes. |
(3) | Includes debentures. |
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At March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||
Rs. | % | Rs. | % | Rs. | % | Rs. | % | Rs. | US$ | % | ||||||||||||||||||||||||||||||||||
Crude petroleum/ refining and petrochemicals | 2,972 | 3.2 | 19,642 | 26.0 | 17,661 | 26.9 | 19,169 | 34.6 | 21,004 | 487 | 41.7 | |||||||||||||||||||||||||||||||||
Road, port, telecom, urban development and other infrastructure | 2,314 | 2.5 | 10,276 | 13.6 | 15,255 | 23.2 | 18,733 | 33.8 | 17,790 | 413 | 35.3 | |||||||||||||||||||||||||||||||||
Iron & steel and products | 42,914 | 46.2 | 8,160 | 10.8 | 10,501 | 16.0 | 4,834 | 8.7 | 4,922 | 114 | 9.8 | |||||||||||||||||||||||||||||||||
Metal & products (excluding iron and steel) | 988 | 1.1 | 2,858 | 3.8 | 3,142 | 4.8 | 3,528 | 6.4 | 3,296 | 77 | 6.5 | |||||||||||||||||||||||||||||||||
Cement | 5,398 | 5.8 | 5,697 | 7.6 | 2,064 | 3.1 | 1,406 | 2.5 | 1,065 | 25 | 2.0 | |||||||||||||||||||||||||||||||||
Chemicals & fertilizers | 5,053 | 5.4 | 8,047 | 10.7 | 6,552 | 10.0 | 2,345 | 4.2 | 985 | 23 | 2.0 | |||||||||||||||||||||||||||||||||
Shipping | 541 | 0.6 | — | — | 497 | 0.8 | 798 | 1.4 | 839 | 19 | 1.7 | |||||||||||||||||||||||||||||||||
Manufacturing products (excluding metals) | 4,499 | 4.8 | 1,494 | 2.0 | 1,405 | 2.1 | 1,393 | 2.5 | 235 | 5 | 0.5 | |||||||||||||||||||||||||||||||||
Automobile (including trucks) | 6,631 | 7.1 | 6,606 | 8.8 | 2,429 | 3.7 | 391 | 0.7 | 151 | 4 | 0.3 | |||||||||||||||||||||||||||||||||
Textiles | 6,930 | 7.5 | 3,151 | 4.2 | 772 | 1.2 | 344 | 0.6 | 86 | 2 | 0.1 | |||||||||||||||||||||||||||||||||
Food and beverages(1) | 3,342 | 3.6 | 2,418 | 3.2 | 684 | 1.0 | 220 | 0.4 | — | — | — | |||||||||||||||||||||||||||||||||
Electronics & engineering | 6,364 | 6.9 | 4,407 | 5.8 | 1,234 | 1.9 | 565 | 1.0 | — | — | — | |||||||||||||||||||||||||||||||||
Power | 1,031 | 1.1 | 1,071 | 1.4 | 2,694 | 4.1 | 1,703 | 3.1 | — | — | — | |||||||||||||||||||||||||||||||||
Others(2) | 3,898 | 4.2 | 1,627 | 2.1 | 733 | 1.2 | 34 | 0.1 | 34 | 1 | 0.1 | |||||||||||||||||||||||||||||||||
Gross restructured loans | 92,875 | 100.0 | 75,454 | 100.0 | 65,623 | 100.0 | 55,463 | 100.0 | 50,407 | 1,170 | 100.0 | |||||||||||||||||||||||||||||||||
Aggregate provision for loan losses | (3,443 | ) | (9,169 | ) | (2,991 | ) | (2,305 | ) | (1,581 | ) | (37 | ) | ||||||||||||||||||||||||||||||||
Net restructured loans | 89,432 | 66,285 | 62,632 | 53,158 | 48,826 | 1,133 | ||||||||||||||||||||||||||||||||||||||
(1) | Includes sugar and tea. |
(2) | Others primarily include construction, drugs and pharmaceuticals, gems and jewelery, fast moving consumer goods and mining. |
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2003 | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||||
Consumer loans & credit card receivables(1) | Rs. 1,121 | Rs. 3,025 | Rs. 8,063 | Rs. 13,836 | Rs. 30,000 | US$ | 696 | |||||||||||||||||
Rupee | 1,121 | 3,025 | 8,061 | 13,828 | 29,991 | 696 | ||||||||||||||||||
Foreign currency | — | — | 2 | 8 | 9 | — | ||||||||||||||||||
Commercial, financial, agricultural and others(2) | 57,483 | 37,677 | 26,826 | 9,187 | 12,200 | 283 | ||||||||||||||||||
Rupee | 42,548 | 30,692 | 23,271 | 7,178 | 11,074 | 257 | ||||||||||||||||||
Foreign currency | 14,935 | 6,985 | 3,555 | 2,009 | 1,126 | 26 | ||||||||||||||||||
Leasing and related activities | 459 | 119 | 84 | 63 | 357 | 8 | ||||||||||||||||||
Rupee | 459 | 119 | 84 | 63 | 357 | 8 | ||||||||||||||||||
Foreign currency | — | — | — | — | — | — | ||||||||||||||||||
Total non-performing assets | 59,063 | 40,821 | 34,973 | 23,086 | 42,557 | 987 | ||||||||||||||||||
Rupee | 44,128 | 33,836 | 31,416 | 21,069 | 41,422 | 961 | ||||||||||||||||||
Foreign currency | 14,935 | 6,985 | 3,557 | 2,017 | 1,135 | 26 | ||||||||||||||||||
Gross non-performing assets | 59,063 | 40,821 | 34,973 | 23,086 | 42,557 | 987 | ||||||||||||||||||
Provision for loan losses | (26,922 | ) | (19,829 | ) | (14,606 | ) | (12,009 | ) | (21,745 | ) | (504 | ) | ||||||||||||
Interest suspended & ECGC claims(3) | (490 | ) | (502 | ) | (284 | ) | (271 | ) | (504 | ) | (12 | ) | ||||||||||||
Net non-performing assets | Rs. 31,651 | Rs. 20,490 | Rs. 20,083 | Rs. 10,806 | Rs. 20,308 | US$ | 471 | |||||||||||||||||
Gross customer assets | Rs. 702,331 | Rs. 772,986 | Rs. 1,049,164 | Rs. 1,638,525 | Rs. 2,234,339 | US$ | 51,841 | |||||||||||||||||
Net customer assets | Rs. 651,885 | Rs. 736,297 | Rs. 1,029,299 | Rs. 1,622,675 | Rs. 2,209,078 | US$ | 51,255 | |||||||||||||||||
Gross non-performing assets as a percentage of gross customer assets | 8.4 | % | 5.3 | % | 3.3 | % | 1.4 | % | 1.9 | % | ||||||||||||||
Net non-performing assets as a percentage of net customer assets | 4.9 | % | 2.8 | % | 2.0 | % | 0.7 | % | 0.9 | % |
(1) | Includes home loans, automobile loans, commercial business loans, two wheeler loans, personal loans, credit card receivables and farm equipment loans. |
(2) | Includes working capital finance. |
(3) | Including amounts claimed as recoverable from Export Credit Guarantee Corporation of India |
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At March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||
Rs. | % | Rs. | % | Rs. | % | Rs. | % | Rs. | US$ | % | ||||||||||||||||||||||||||||||||||
Chemicals and fertilizers | 9,582 | 16.3 | 4,930 | 12.1 | 2,956 | 8.4 | 1,654 | 7.2 | 1,642 | 38 | 3.9 | |||||||||||||||||||||||||||||||||
Food and beverages(1) | 3,159 | 5.3 | 1,981 | 4.8 | 947 | 2.7 | 670 | 2.9 | 1,247 | 29 | 2.9 | |||||||||||||||||||||||||||||||||
Textiles | 15,085 | 25.5 | 8,051 | 19.7 | 4,185 | 12.0 | 1,675 | 7.3 | 834 | 19 | 2.0 | |||||||||||||||||||||||||||||||||
Iron & steel and products | 7,672 | 13.0 | 1,362 | 3.3 | 745 | 2.1 | 210 | 0.9 | 772 | 18 | 1.8 | |||||||||||||||||||||||||||||||||
Services — Non finance | 1,182 | 2.0 | 1,351 | 3.3 | 934 | 2.7 | 976 | 4.2 | 632 | 15 | 1.5 | |||||||||||||||||||||||||||||||||
Electronics & engineering | 5,150 | 8.7 | 3,452 | 8.5 | 2,816 | 8.1 | 550 | 2.4 | 626 | 14 | 1.5 | |||||||||||||||||||||||||||||||||
Services — finance | 2,161 | 3.7 | 1,090 | 2.7 | 936 | 2.7 | 126 | 0.5 | 195 | 5 | 0.5 | |||||||||||||||||||||||||||||||||
Paper and paper products | 1,734 | 2.9 | 507 | 1.2 | 289 | 0.8 | 74 | 0.3 | 66 | 2 | 0.2 | |||||||||||||||||||||||||||||||||
Automobiles (including trucks) | 748 | 1.3 | 675 | 1.6 | 681 | 1.9 | 32 | 0.1 | 61 | 1 | 0.1 | |||||||||||||||||||||||||||||||||
Metal & products (excluding iron & steel) | 3,213 | 5.4 | 1,934 | 4.7 | 174 | 0.5 | 11 | 0.1 | 11 | — | 0.1 | |||||||||||||||||||||||||||||||||
Road, port, telecom, urban development & other infrastructure | 180 | 0.3 | 73 | 0.2 | 2,141 | 6.1 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Power | 623 | 1.1 | 6,200 | 15.2 | 7,373 | 21.1 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Cement | 1,623 | 2.7 | 1,545 | 3.8 | 180 | 0.5 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Retail finance(2) | 1,134 | 1.9 | 3,580 | 8.8 | 8,452 | 24.2 | 14,423 | 62.5 | 31,316 | 727 | 73.6 | |||||||||||||||||||||||||||||||||
Others(3) | 5,817 | 9.9 | 4,090 | 10.1 | 2,164 | 6.2 | 2,685 | 11.6 | 5,155 | 119 | 11.9 | |||||||||||||||||||||||||||||||||
Gross non-performing assets | 59,063 | 100.0 | 40,821 | 100.0 | 34,973 | 100.0 | 23,086 | 100.0 | 42,557 | 987 | 100.0 | |||||||||||||||||||||||||||||||||
Aggregate provision for loan losses | (26,922 | ) | (19,829 | ) | (14,606 | ) | (12,009 | ) | (21,745 | ) | (504 | ) | ||||||||||||||||||||||||||||||||
Interest suspended & ECGC claims(4) | (490 | ) | (502 | ) | (284 | ) | (271 | ) | (504 | ) | (12 | ) | ||||||||||||||||||||||||||||||||
Net non-performing assets | 31,651 | 20,490 | 20,083 | 10,806 | 20,308 | 471 | ||||||||||||||||||||||||||||||||||||||
(1) | Includes sugar and tea. |
(2) | Includes home loans, automobile loans, commercial business loans, two wheeler loans, personal loans, credit cards receivables, retail overdraft loans, dealer funding and developer financing. |
(3) | Others primarily include shipping, construction, crude petroleum, drugs & pharmaceuticals, gems & jewellery, fast moving consumer goods and mining. |
(4) | Includes amounts claimed as recoverable from Export Credit Guarantee Corporation of India. |
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Non-Performing Asset Strategy |
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Provision for Loan Losses |
At March 31, | ||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | 2007 | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Aggregate provision for loan losses at the beginning of the year | Rs. 26,010 | Rs. 26,922 | Rs. 19,829 | Rs. 14,606 | Rs. 12,009 | US$ | 279 | |||||||||||||||||
Add: Provisions for loan losses Consumer loans & credit card receivables(1) | 241 | 510 | 4,357 | 1,938 | 8,821 | 204 | ||||||||||||||||||
Commercial, financial, agricultural and others(2) | 6,759 | 3,174 | (140 | ) | 1,453 | 2,463 | 57 | |||||||||||||||||
Leasing & related activities | 10 | (68 | ) | (11 | ) | (18 | ) | 48 | 1 | |||||||||||||||
Total provisions for loan losses, net of releases of provisions | Rs. 33,020 | Rs. 30,538 | Rs. 24,035 | Rs. 17,979 | Rs. 23,341 | US$ | 541 | |||||||||||||||||
Loans charged-off | (6,098 | ) | (10,709 | ) | (9,429 | ) | (5,970 | ) | (1,596 | ) | (37 | ) | ||||||||||||
Aggregate provision for loan losses at the end of the year | Rs. 26,922 | Rs. 19,829 | Rs. 14,606 | Rs. 12,009 | Rs. 21,745 | US$ | 504 | |||||||||||||||||
(1) | Includes home loans, automobile loans, commercial business loans, two wheeler loans, personal loans, credit cards and farm equipment. |
(2) | Includes project finance, working capital finance, corporate finance and receivables financing, excluding leasing and related activities. |
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Year of | Ownership | Total | Net | Total | ||||||||||||||||||
Name | Formation | Activity | Interest | Income(1) | Worth(2) | Assets(3) | ||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||
ICICI Securities Primary Dealership Limited (formerly ICICI Securities Limited)(4) | February 1993 | Investment banking | 99.94 | % | Rs. 4,247 | Rs. 4,112 | Rs. 19,582 | |||||||||||||||
ICICI Securities Limited (formerly ICICI Brokerage Services Limited)(4) | March 1995 | Securities broking | 99.94 | % | 4,379 | 866 | 3,928 | |||||||||||||||
ICICI Securities Holdings Inc(4) | June 2000 | Investment banking | 99.94 | % | 14 | 319 | 327 | |||||||||||||||
ICICI Securities Inc(4) | June 2000 | Investment banking | 99.94 | % | 105 | 265 | 628 | |||||||||||||||
ICICI Prudential Life Insurance Company Limited(5) | July 2000 | Life insurance | 73.86 | % | 89,192 | 5,049 | 167,619 | |||||||||||||||
ICICI Lombard General Insurance Company Limited(5) | October 2000 | General insurance | 73.84 | % | 13,932 | 9,303 | 29,540 | |||||||||||||||
ICICI Prudential Asset Management Company Limited (formerly Prudential ICICI Asset Management Company Limited)(5) | June 1993 | Asset management company for ICICI Prudential Mutual Fund | 50.99 | % | 2,389 | 481 | 1,287 | |||||||||||||||
ICICI Prudential Trust Limited (formerly Prudential ICICI Trust Limited)(5) | June 1993 | Trustee company for ICICI Prudential Mutual Fund | 50.80 | % | 4 | 8 | 14 | |||||||||||||||
ICICI Venture Funds Management Company Limited | January 1988 | Venture fund management | 100.00 | % | 2,019 | 323 | 3,245 | |||||||||||||||
ICICI Home Finance Company Limited | May 1999 | Housing finance | 100.00 | % | 4,443 | 3,693 | 46,108 | |||||||||||||||
ICICI Trusteeship Services Limited | April 1999 | Trusteeship services | 100.00 | % | 0.4 | 2 | 2 | |||||||||||||||
ICICI Investment Management Company Limited | March 2000 | Investment management | 100.00 | % | 11 | 128 | 129 | |||||||||||||||
ICICI International Limited | January 1996 | Offshore fund management | 100.00 | % | 6 | 44 | 183 | |||||||||||||||
ICICI Bank UK PLC.(formerly ICICI Bank UK Limited) | February 2003 | Banking | 100.00 | % | 10,461 | 9,576 | 209,818 | |||||||||||||||
ICICI Bank Canada(6) | September 2003 | Banking | 100.00 | % | 3,184 | 4,044 | 77,015 | |||||||||||||||
ICICI Bank Eurasia LLC | May 1998 | Banking | 100.00 | % | 907 | 1,953 | 20,043 | |||||||||||||||
TCW/ ICICI Investment Partners LLC(7) | April 1995 | Asset and fund management company | 50.00 | % | 2 | 23 | 23 | |||||||||||||||
TSI Ventures (India) Private Limited(7) | May 2005 | Real estate consultant | 50.00 | % | 13 | 15 | 105 |
(1) | Total income represents gross income from operations and other income. |
(2) | Net worth represents share capital/unit capital and reserves and surplus. |
(3) | Total assets represents fixed assets, advances, investments and gross current assets (including cash and bank balances). |
(4) | Includes direct and indirect holdings. During fiscal 2008, ICICI Securities Primary Dealership Limited has become a wholly-owned subsidiary of ICICI Bank and ICICI Securities Limited, which was earlier a subsidiary of ICICI Securities Primary Dealership, has become a direct wholly-owned subsidiary of ICICI Bank. ICICI Securities Holdings Inc. which was a wholly-owned subsidiary of ICICI Securities Primary Dealership has become a wholly-owned subsidiary of ICICI Securities. ICICI Securities Inc. is a wholly-owned subsidiary of ICICI Securities Holdings Inc. ICICI Webtrade Limited merged with ICICI Securities effective October 2, 2006. |
(5) | The financial statements of these jointly controlled entities have been consolidated as per AS 21 on “Consolidated Financial Statements” consequent to the limited revision to AS 27 on “Financial Reporting of Interests in Joint Ventures”. |
(6) | ICICI Wealth Management Inc. (“ICICI WM”) was incorporated as a 100% subsidiary of ICICI Bank Canada on July 28, 2006. ICICI WM received a Limited Market Dealer license from the Ontario Securities Commission on March 2, 2007, which permits ICICI WM to provide wealth management services to Accredited Investors and Sophisticated Investors (both as defined in Canadian regulations) in Canada (except those in the provinces of Newfoundland and Labrador). ICICI WM has not yet been capitalised and is yet to commence operations, both of which are expected shortly. |
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(7) | These entities have been consolidated as per the proportionate consolidation method as prescribed by AS 27 on “Financial Reporting of Interests in Joint ventures”. |
Year of | Ownership | Total | Net | Total | ||||||||||||||||||
Name | Formation | Activity | Interest | Income(1) | Worth(2) | Assets(3) | ||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||
ICICI Eco-net Internet & Technology Fund | October 2000 | Venture capital fund | 92.03 | % | Rs. | 9 | Rs. 1,825 | Rs. 1,825 | ||||||||||||||
ICICI Equity Fund | March 2000 | Venture capital fund | 100.00 | % | 427 | 3,005 | 3,007 | |||||||||||||||
ICICI Emerging Sectors Fund | March 2002 | Venture capital fund | 99.29 | % | 1,301 | 7,886 | 7,911 | |||||||||||||||
ICICI Strategic Investments Fund | February 2003 | Venture capital fund | 100.00 | % | 1,492 | 5,316 | 5,316 | |||||||||||||||
ICICI Property Trust | June 2001 | Assets and investments management | 100.00 | % | Nil | 0.1 | 0.1 |
(1) | Total income represents gross income from operations and other income. |
(2) | Net worth represents share capital/unit capital (in case of venture capital funds) and reserves and surplus. |
(3) | Total assets represents fixed assets, advances, investments and gross current assets (including cash and bank balances). |
• | ICICI Securities Holdings Inc., incorporated in the US; | |
• | ICICI Securities Inc., incorporated in the US; | |
• | ICICI Bank UK plc.(formerly ICICI Bank UK Limited), incorporated in the United Kingdom; | |
• | ICICI Bank Canada, incorporated in Canada; | |
• | ICICI Bank Eurasia Limited Liability Company, incorporated in Russia; | |
• | ICICI International Limited, incorporated in Mauritius; and | |
• | TCW/ ICICI Investment Partners Limited Liability Company, incorporated in Mauritius |
• | Electronic and online channels to: |
• | offer easy access to our products and services; | |
• | reduce distribution and transaction costs; | |
• | reach new target customers; | |
• | enhance existing customer relationships; and | |
• | reduce time to market. |
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• | Application of information systems to: |
• | manage our large scale of operations efficiently; | |
• | effectively market to our target customers; | |
• | monitor and control risks; | |
• | identify, assess and capitalize on market opportunities; and | |
• | assist in offering improved products to customers. |
Technology Organization |
Banking Application Software |
Electronic and Online Channels |
High-Speed Electronic Communications Infrastructure |
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Operations relating to Commercial Banking for Corporate Customers |
Customer Relationship Management |
Data Warehousing and Data Mining |
Data center and disaster recovery system |
Commercial banking products and services for retail customers |
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Commercial banking products and services for corporate customers |
Commercial banking products and services for international customers |
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Commercial banking products and services for corporate customers |
Insurance and asset management |
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At March 31, | ||||||||||||||||||||||||
2005 | 2006 | 2007 | ||||||||||||||||||||||
Number | % to Total | Number | % to Total | Number | % to Total | |||||||||||||||||||
ICICI Bank Limited | 18,029 | 61.4 | % | 25,384 | 60.6 | % | 33,321 | 54.0 | % | |||||||||||||||
ICICI Prudential Life Insurance Company Limited | 5,186 | 17.7 | 7,704 | 18.4 | 16,317 | 26.4 | ||||||||||||||||||
ICICI Lombard General Insurance Company Limited | 1,249 | 4.25 | 2,283 | 5.4 | 4,770 | 7.7 | ||||||||||||||||||
ICICI Home Finance Company Limited | 4,324 | 14.7 | 5,605 | 13.4 | 6,149 | 10.0 | ||||||||||||||||||
ICICI Prudential Asset Management Company Limited | 236 | 0.8 | 316 | 0.7 | 401 | 0.6 | ||||||||||||||||||
ICICI Securities Primary Dealership Limited | 172 | 0.6 | 188 | 0.4 | 214 | 0.3 | ||||||||||||||||||
Others | 178 | 0.6 | 391 | 0.9 | 525 | 0.9 | ||||||||||||||||||
Total number of employees | 29,374 | 100.0 | % | 41,871 | 100.0 | % | 61,697 | 100.0 | % | |||||||||||||||
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• | We have received favorable decisions from the appellate authorities with respect to Rs. 603 million (US$14 million) of the assessment. The income tax authorities have appealed these decisions to higher appellate authorities and the same are pending adjudication. | |
• | In our appeal of the assessment of sales tax aggregating to Rs. 493 million (US$11 million), we are relying on a favorable decision of the Supreme Court of India in respect of a writ petition filed by us and facts of the case. | |
• | In our appeal of the assessments of income tax, interest tax and wealth tax aggregating to Rs. 38.4 billion (US$891 million), we are relying on favorable precedents of the appellate court and expert opinions. |
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• | In 1999, ICICI filed a suit before the High Court of Judicature at Bombay against Mardia Chemicals Limited for recovery of amounts totaling Rs. 1.4 billion (US$33 million) due from Mardia Chemicals. The suit was subsequently transferred to the Debt Recovery Tribunal, Mumbai. In 2002, we issued a notice to Mardia Chemicals Limited under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance, 2002 (subsequently passed as an Act by the Indian parliament) demanding payment of the outstanding dues. Subsequently, Mardia Chemicals filed a suit in the city civil court at Ahmedabad against us and Mr. K.V. Kamath, Managing Director & CEO for an amount of Rs. 56.3 billion (US$1.3 billion) on the grounds that Mardia Chemicals had allegedly suffered financial losses on account of ICICI’s failure to provide adequate financial facilities, ICICI’s recall of the advanced amount and ICICI’s filing of a recovery action against it. The City Civil Court held that the suit should have been filed in the pending proceedings before the Debt Recovery Tribunal, Mumbai. Mardia Chemicals filed an appeal before the High Court of Gujarat, which dismissed the appeal and ordered that the claim against us be filed before the Debt Recovery Tribunal, Mumbai and the claim against Mr. K.V. Kamath be continued before the City Civil Court at Ahmedabad. We have challenged the decision of the City Civil Court in not rejecting the plaint of Mardia Chemicals Limited, but permitting it to be heard. | |
• | In 2003, the promoters of Mardia Chemicals in their capacity as guarantors of loans given by ICICI to Mardia Chemicals filed a civil suit in the city civil court at Ahmedabad against ICICI Bank for an amount of Rs. 20.8 billion (US$483 million) on the grounds of loss of investment and loss of profit on investment. Pleadings under the above applications have concluded. The matter is posted for final hearing. | |
• | In 2002, we filed a suit before the Debt Recovery Tribunal, Ahmedabad against Gujarat Telephone Cables Limited for recovery of term loans, debentures and working capital finance provided by ICICI Bank. We sold our exposure to Asset Reconstruction Company (India) Limited in 2004. The borrower has filed a suit in the Civil Court claiming damages of Rs. 10.0 billion (US$232 million) jointly and severally from State Bank of India, Bank of Baroda, United Western Bank, UTI Bank, Bank of India, Asset Reconstruction Company (India) Limited and ICICI Bank. ICICI Bank has filed an application for rejection of the plaint. The borrower has obtained time to file a reply to ICICI Bank’s application. | |
• | In 1998, Industrial Finance Corporation India, now known as IFCI Limited along with ICICI and Life Insurance Corporation of India filed a suit in the Debt Recovery Tribunal, Delhi against Foremost Ceramics Limited and its guarantors for recovery of amounts owed. In 2001, a guarantor for the loan filed a counter-claim for an amount of Rs. 4.5 billion (US$104 million) against all lenders who had extended financial assistance to Foremost Ceramics Limited, on various grounds including that timely disbursements were not effected. Industrial Finance Corporation of India has filed its reply, which has been adopted by Life Insurance Corporation of India and ICICI Bank, denying these averments and stating that the counter-claim does not deny the fact of the guarantee and that the guarantor is merely trying to escape liability. The matter is posted for further arguments on July 12, 2007. | |
• | In 1999, ICICI filed a suit in the Debt Recovery Tribunal, Delhi against Esslon Synthetics Limited and its Managing Director (in his capacity as guarantor) for recovery of amounts totaling Rs. 169 million (US$4 million) due from Esslon Synthetics. In May 2001, the guarantor filed a counter-claim for an amount of Rs. 1.0 billion (US$23 million) against ICICI and other lenders who had extended financial assistance to Esslon Synthetics on the grounds that he had been coerced by officers of the lenders into signing an agreement between LML Limited, Esslon Synthetics and the lenders on account of which he suffered, among other things, loss of business. Esslon Synthetics Limited has filed an application to amend the counterclaim in January 2004. ICICI Bank has filed its reply to the application for |
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amendment. The application has been partly heard and is listed for further arguments on July 12, 2007. |
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Age | Date of | |||||||
Name, Designation and Profession | (years) | Appointment | Particulars of other Directorship(s) | |||||
Mr. Narayanan Vaghul Chairman Chairman: Board Governance & Remuneration Committee Credit Committee Customer Service Committee Risk Committee Profession: Development Banker | 70 | March 27, 2002 | Chairman Asset Reconstruction Company (India) Limited GIVE Foundation Himatsingka Seide Limited ICICI Knowledge Park Mahindra World City Developers Limited Pratham India Education Initiative Director Air India Limited Air India Air Transport Services Limited Air India Engineering Services Limited Apollo Hospitals Enterprise Limited Azim Premji Foundation Hemogenomics Private Limited Mahindra & Mahindra Limited Mittal Steel Caribbean Mittal Steel Company N.V. Nicholas Piramal India Limited Trans-India Acquisition Corporation Wipro Limited |
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Age | Date of | |||||||
Name, Designation and Profession | (years) | Appointment | Particulars of other Directorship(s) | |||||
Mr. Sridar Iyengar Chairman: Audit Committee Profession: Business Advisor | 59 | April 30, 2005 | Director American Indian Foundation Foundation for Democratic Reforms in India Infosys BPO Limited Infosys Technologies Limited Kovair Software Inc. Mango Analytics Inc. Onmobile Asia Pacific Private Limited Rediff.com India Limited Rediff Holdings Inc. | |||||
Mr. Ram Kishore Joshi Profession: Retired Company Executive | 60 | October 13, 2005 | Chairman GIC Asset Management Company Limited GIC Housing Finance Limited Director The Andhra Pradesh Paper Mills Limited | |||||
Mr. Lakshmi Niwas Mittal Profession: Industrialist | 56 | May 3, 2002 | Director Arcelor S.A. Artha Limited Galmatias Limited LNM Capital Limited LNM Internet Ventures Limited Lucre Limited Mittal Steel Company Limited Mittal Steel Company N.V. Mittal Steel USA Inc. Nestor Limited Nuav Limited ONGC Mittal Energy Limited ONGC Mittal Energy Services Limited Pratham UK Limited Tommyfield Limited President Ispat Inland U.L.C | |||||
Mr. Narendra Murkumbi Profession: Company Executive | 37 | January 20, 2006 | Managing Director Shree Renuka Sugars Limited Director Murkumbi Bioagro Private Limited Murkumbi Industries Private Limited Shree Renuka Infraprojects Limited Director & CEO Renuka Commodities DMCC | |||||
Mr. Anupam Pradip Puri Profession: Management Consultant | 61 | May 3, 2002 | Director Dr. Reddy’s Laboratories Limited Mahindra & Mahindra Limited Tech Mahindra Limited |
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Age | Date of | |||||||
Name, Designation and Profession | (years) | Appointment | Particulars of other Directorship(s) | |||||
Mr. Vinod Rai Profession: Government Service | 58 | January 3, 2003 | Director Industrial Development Bank of India Limited India Infrastructure Finance Company Limited Infrastructure Development Finance Company Limited Life Insurance Corporation of India State Bank of India | |||||
Mr. Mahendra Kumar Sharma Chairman: Fraud Monitoring Committee Share Transfer & Shareholders’/ Investors’ Grievance Committee Alternate Chairman: Audit Committee Profession: Retired Company Executive | 60 | January 31, 2003 | Chairman Unilever Nepal Limited | |||||
Mr. Priya Mohan Sinha Profession: Professional Manager | 66 | January 22, 2002 | Chairman Bata India Limited Director Indian Oil Corporation Limited Lafarge India Private Limited Wipro Limited | |||||
Prof. Marti Gurunath Subrahmanyam Profession: Professor | 60 | May 3, 2002 | Director Infosys Technologies Limited International Schools of Business Management Limited Metahelix Life Sciences Private Limited Nomura Asset Management (U.S.A.), Inc. Supply Chainge Inc. The Animi Offshore Fund Limited The Animi Concentrated Risk Fund Usha Comm Tech Limited |
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Age | Date of | |||||||
Name, Designation and Profession | (years) | Appointment | Particulars of other Directorship(s) | |||||
Mr. T.S. Vijayan Profession: Company Executive | 54 | April 30, 2005 | Chairman Life Insurance Corporation of India Non-Executive Chairman LIC Housing Finance Limited LIC Mutual Fund Asset Management Company Limited LIC International B.S.C LIC (Nepal) Limited LIC (Lanka) Limited LIC (Mauritius) Offshore Limited Director General Insurance Corporation of India Kenindia Assurance Company Limited National Commodities & Derivatives Exchange Limited National Stock Exchange of India Limited | |||||
Mr. V. Prem Watsa Profession: Company Executive | 56 | January 29, 2004 | Chairman & CEO Fairfax Financial Holdings Limited Chairman Crum & Foster Holdings Corp. Northbridge Financial Corporation TIG Holdings, Inc. Director Cunningham Lindsey Group Inc. Odyssey Re Holdings Corp. | |||||
Mr. Kundapur Vaman Kamath Chairman: Committee of Directors Profession: Company Executive | 59 | April 17, 1996 | Chairman ICICI Bank Canada ICICI Bank UK Plc. ICICI Lombard General Insurance Company Limited ICICI Prudential Life Insurance Company Limited ICICI Prudential Asset Management Company Limited ICICI Securities Primary Dealership Limited Director ICICI Securities Limited Indian Institute of Management, Ahmedabad Visa International Asia Pacific Regional Board Member — Governing Board Indian School of Business |
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Age | Date of | |||||||
Name, Designation and Profession | (years) | Appointment | Particulars of other Directorship(s) | |||||
Ms. Chanda Kochhar Profession: Company Executive | 45 | April 1, 2001 | Chairperson ICICI Bank Eurasia Limited Liability Company ICICI Investment Management Company Limited Director ICICI Bank Canada ICICI Bank UK Plc. ICICI Prudential Life Insurance Company Limited | |||||
Dr. Nachiket Mor Profession: Company Executive | 43 | April 1, 2001 | Director CARE, USA ICICI Knowledge Park ICICI Securities Primary Dealership Limited ICICI Securities Limited Pratham India Education Initiative | |||||
Mr. V. Vaidyanathan Profession: Company Executive | 39 | October 24, 2006 | Chairman ICICI Home Finance Company Limited Director ICICI Lombard General Insurance Company Limited | |||||
Ms. Madhabi Puri-Buch Profession: Company Executive | 41 | June 1, 2007 | Director ICICI Venture Funds Management Company Limited ICICI Prudential Trust Limited |
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Total stock | ||||||||||||||||||||||||||||||||||||||
Stock | Stock | options | Total stock | |||||||||||||||||||||||||||||||||||
Total | options | options | granted | options | Share- | |||||||||||||||||||||||||||||||||
Years of | remuneration | Bonus for | granted | granted | through | outstanding | holdings at | |||||||||||||||||||||||||||||||
Designation and | work | in fiscal | fiscal | in fiscal | in fiscal | May 15, | at May 15, | May 12, | ||||||||||||||||||||||||||||||
Name | Age | Responsibilities | experience | 2007(1) | 2007(2) | 2007 | 2008(3) | 2007(3) | 2007(3)(4) | 2007(5) | ||||||||||||||||||||||||||||
(in Rupees) | (in Rupees) | |||||||||||||||||||||||||||||||||||||
Mr. K.V. Kamath | 59 | Managing Director & CEO | 35 | 20,576,629 | 5,580,000 | 250,000 | 300,000 | 1,575,000 | 900,000 | 624,500 | ||||||||||||||||||||||||||||
Ms. Chanda D. Kochhar | 45 | Deputy Managing Director | 23 | 8,944,123 | 2,700,000 | 125,000 | 175,000 | 805,000 | 475,000 | 279,075 | ||||||||||||||||||||||||||||
Dr. Nachiket Mor | 43 | Deputy Managing Director | 20 | 11,233,709 | 2,160,000 | 125,000 | 175,000 | 802,000 | 475,000 | Nil | ||||||||||||||||||||||||||||
Mr.V. Vaidyanathan | 39 | Executive Director | 16 | 8,517,149 | 2,160,000 | 75,000 | 150,000 | 484,900 | 330,000 | 46,810 | ||||||||||||||||||||||||||||
Ms. Madhabi Puri-Buch | 41 | Executive Director | 17 | 6,638,932 | 3,192,000 | 75,000 | 1,00,000 | 454,900 | 280,000 | 118,861 | ||||||||||||||||||||||||||||
Ms. Vishakha Mulye | 38 | Group Chief Financial Officer | 14 | 5,392,900 | 2,964,000 | 75,000 | 1,00,000 | 385,975 | 257,500 | 110,975 | ||||||||||||||||||||||||||||
Mr. K. Ramkumar | 45 | Group Chief Human Resources Officer | 22 | 5,880,747 | 3,078,000 | 75,000 | 1,00,000 | 355,000 | 257,500 | 22,000 | ||||||||||||||||||||||||||||
Mr. Pravir Vohra | 53 | Group Chief Technology Officer | 32 | 6,470,117 | 285,000 | 40,000 | 1,00,000 | 279,500 | 218,000 | 41,500 |
(1) | Including ICICI Bank’s contribution to the superannuation fund, provident fund and leave travel allowance and excluding bonus payable for fiscal 2006 which was paid in fiscal 2007. Includes aggregate leave travel allowance availed during the year: K.V. Kamath — Rs. 2,325,000 (US$ 53,944), Chanda D. Kochhar — Rs. 937,500 (US$ 21,752), Nachiket Mor — Rs. 2,062,500 (US$ 47,854), V. Vaidyanathan — Rs. 830,685 (US$ 19,273) and all other executive officers — Rs. 2,375,000 (US$ 55,104); and leave encashment: V. Vaidyanathan — Rs. 317,333 (US$ 7,363) and all other executive officers — Rs. 416,666 (US$ 9,667). |
(2) | Bonus for fiscal 2007 was paid in fiscal 2008. Payment of bonus for fiscal 2007 to wholetime directors has not been made pending approval of the Reserve Bank of India. |
(3) | Through May 17, 2007. The grant of options to wholetime directors in fiscal 2008 is subject to the approval of the Reserve Bank of India. |
(4) | Each stock option, once exercised, is equivalent to one equity share of ICICI Bank. ICICI Bank granted these stock options to its executive officers at no cost. See “— Compensation and Benefits to Directors and Officers — Employee Stock Option Scheme” for a description of the other terms of these stock options. In accordance with the Scheme of Amalgamation, directors and employees of ICICI have received stock options in ICICI Bank equal to half the number of the outstanding unexercised stock options they held in ICICI with the exercise price of these options being equal to twice the exercise price for the ICICI stock options exchanged. The stock options mentioned above include ICICI stock options converted into ICICI Bank stock options on this basis. |
(5) | Executive officers and directors (including non-executive directors) as a group held about 0.5% of ICICI Bank’s equity shares as of this date. |
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• | approving corporate philosophy and mission; | |
• | participating in the formulation of strategic and business plans; | |
• | reviewing and approving financial plans and budgets; | |
• | monitoring corporate performance against strategic and business plans, including overseeing operations; | |
• | ensuring ethical behavior and compliance with laws and regulations; | |
• | reviewing and approving borrowing limits; | |
• | formulating exposure limits; and | |
• | keeping shareholders informed regarding plans, strategies and performance. |
Audit Committee |
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Board Governance & Remuneration Committee |
Credit Committee |
Customer Service Committee |
Fraud Monitoring Committee |
Risk Committee |
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Share Transfer & Shareholders’/ Investors’ Grievance Committee |
Agriculture & Small Enterprises Business Committee |
Business Strategy Committee |
Committee of Directors |
Asset-Liability Management Committee |
Code of Ethics |
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Principal Accountant Fees and Services |
Convenience translation | ||||||||||||||
into US$ | ||||||||||||||
Year ended March 31, | Year ended March 31, | |||||||||||||
2006 | 2007 | 2007 | ||||||||||||
(in millions) | ||||||||||||||
Audit | ||||||||||||||
Audit of ICICI Bank Limited and its subsidiaries | Rs. 38.5 | Rs. 60.6 | US$ | 1,406,032 | ||||||||||
Audit-related services | ||||||||||||||
Opinion on non-statutory accounts presented in Indian Rupees | 7.9 | 14.1 | 327,146 | |||||||||||
Others | 6.0 | 25.1 | 582,367 | |||||||||||
Sub-total | 52.4 | 99.8 | 2,315,545 | |||||||||||
Non-audit services | ||||||||||||||
Tax services | — | — | ||||||||||||
Tax compliance | 1.2 | 1.0 | 23,202 | |||||||||||
Other services | 4.9 | 20.4 | 473,318 | |||||||||||
Sub-total | 6.1 | 21.4 | 496,520 | |||||||||||
Total | 58.5 | 121.2 | 2,812,065 | |||||||||||
Summary Comparison of Corporate Governance Practices |
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Remuneration |
Proposed Monthly | ||||
Name and Designation | Monthly Salary Range | Salary Range | ||
(Rs.) | (Rs.)(1) | |||
Mr. K. V. Kamath Managing Director & CEO | 600,000-1,050,000 (US$ 13,921-US$ 24,362) | 700,000-1,350,000 (US$ 16,241-US$ 31,323) | ||
Ms. Chanda D. Kochhar Deputy Managing Director | 200,000-500,000 (US$ 4,640-US$ 11,601) | 400,000-1,050,000 (US$ 9,281-US$ 24,362) | ||
Dr. Nachiket Mor Deputy Managing Director | 200,000-500,000 (US$ 4,640-US$ 11,601) | 400,000-1,050,000 (US$ 9,281-US$ 24,362) | ||
Mr. V. Vaidyanathan Executive Director | 200,000-500,000 (US$ 4,640-US$ 11,601) | 300,000-1,000,000 (US$ 6,961-US$ 23,202) | ||
Ms. Madhabi Puri-Buch Executive Director | — | 300,000-1,000,000 (US$ 6,961-US$ 23,202) |
(1) | The board (based on the recommendation of the Board Governance & Remuneration Committee) at its meeting held on April 28, 2007 approved the revision in salary range of the wholetime Directors, subject to the approval of the shareholders. |
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Bonus |
Employee Stock Option Scheme |
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Number of | ||||||||||||
Date of grant | options granted | Exercise price | ||||||||||
February 21, 2000 | 1,713,000 | Rs. 171.90 | US$ | 3.99 | ||||||||
April 26, 2001 | 1,580,200 | 170.00 | 3.94 | |||||||||
March 27, 2002 | 3,155,000 | 120.35 | 2.79 | |||||||||
April 25, 2003 | 7,338,300 | 132.05 | 3.06 | |||||||||
July 25, 2003 | 147,500 | 157.03 | 3.64 | |||||||||
October 31, 2003 | 6,000 | 222.40 | 5.16 | |||||||||
April 30, 2004 | 7,539,500 | 300.10 | 6.96 | |||||||||
September 20, 2004 | 15,000 | 275.20 | 6.39 | |||||||||
April 30, 2005 | 4,906,180 | 359.95 | 8.35 | |||||||||
August 20, 2005 | 70,600 | 498.20 | 11.56 | |||||||||
January 20, 2006 | 5,000 | 569.55 | 13.21 | |||||||||
April 29, 2006 | 6,267,400 | 576.80 | 13.38 | |||||||||
July 22, 2006 | 29,000 | 484.75 | 11.25 | |||||||||
October 24, 2006 | 78,500 | 720.55 | 16.72 | |||||||||
January 20, 2007 | 65,000 | 985.40 | 22.86 | |||||||||
April 28, 2007 | 4,820,300 | (1) | 935.15 | 21.69 |
(1) | Includes options granted to wholetime directors on April 28, 2007. The grant is subject to the approval of the Reserve Bank of India. |
Number of | ||||||||||||
Date of grant | options granted | Exercise price(1) | ||||||||||
August 3, 1999 | 2,323,750 | Rs.85.55 | US$ | 1.98 | ||||||||
April 28, 2000 | 2,902,500 | 133.40 | 3.10 | |||||||||
November 14, 2000 | 20,000 | 82.90 | 1.92 | |||||||||
May 3, 2001 | 3,145,000 | 82.00 | 1.90 | |||||||||
August 13, 2001 | 60,000 | 52.50 | 1.22 | |||||||||
March 27, 2002 | 6,473,700 | 60.25 | 1.40 |
(1) | The exercise price is equal to the market price of ICICI’s equity shares on the date of grant. |
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Particulars | ICICI Bank | |||
Options granted | 45,198,955 | |||
Options vested | 26,644,229 | |||
Options exercised | 22,238,507 | |||
Options forfeited/lapsed | 5,091,891 | |||
Extinguishment or modification of options | [None] | |||
Amount realized by sale of options | Rs. 3,935,490,671 | |||
Total number of options in force | 17,868,557 |
Loans |
Gratuity |
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Superannuation Fund |
Provident Fund |
Pension Fund |
Interest of Management in Certain Transactions |
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• | each of our directors; | |
• | each of our executive officers; | |
• | all of our officers and directors as a group; and | |
• | each shareholder known to us to be the beneficial owner of 5% or more of our equity shares. |
Name and Address of Beneficial Owner | Number(1) | Percentage | |||||
Directors and Executive Officers: | |||||||
Mr. Narayanan Vaghul | 27,543 | * | |||||
Mr. Ram Kishore Joshi | — | * | |||||
Mr. Lakshmi Niwas Mittal | 3,110,700 | * | |||||
Mr. Narendra Murkumbi | — | * | |||||
Mr. Anupam Pradip Puri | — | * | |||||
Mr. Vinod Rai | — | * | |||||
Mr. Mahendra Kumar Sharma | 5,050 | * | |||||
Mr. Priya Mohan Sinha | — | * | |||||
Prof. Marti Gurunath Subrahmanyam | 1,613 | * | |||||
Mr. V. Prem Watsa | — | * | |||||
Mr. Sridar Iyengar | — | * | |||||
Mr. T.S. Vijayan | — | * | |||||
Mr. Kundapur Vaman Kamath(2) | 799,500 | * | |||||
Ms. Chanda Kochhar(3) | 366,575 | * | |||||
Dr. Nachiket Mor(4) | 87,500 | * | |||||
Mr. V. Vaidyanathan(5) | 99,310 | * | |||||
Ms. Madhabi Puri-Buch(6) | 171,361 | * | |||||
Ms. Vishakha Mulye(7) | 152,225 | * | |||||
Mr. K. Ramkumar(8) | 63,250 | * | |||||
Mr. Pravir Vohra(9) | 81,000 | * | |||||
All directors and officers as a group (20 persons) | 4,965,627 | * |
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Name and Address of Beneficial Owner | Number(1) | Percentage | ||||||
Other 5% Shareholders(10) | ||||||||
Life Insurance Corporation of India | 68,877,253 | 7.6% | ||||||
Yogakshema | ||||||||
Jeevan Bima Marg | ||||||||
Mumbai 400 021, India | ||||||||
Allamanda Investments Pte. Limited(11) | 66,234,627 | 7.3% | ||||||
Les Cascades Building, | ||||||||
Edith Cavell Street | ||||||||
Port Louis, Mauritius |
(1) | Information on ownership of equity shares has been provided to us by our registrar. |
(2) | Includes options, which are immediately exercisable, to purchase 175,000 equity shares. |
(3) | Includes options, which are immediately exercisable, to purchase 87,500 equity shares. |
(4) | Includes options, which are immediately exercisable, to purchase 87,500 equity shares. |
(5) | Includes options, which are immediately exercisable, to purchase 52,500 equity shares. |
(6) | Includes options, which are immediately exercisable, to purchase 52,500 equity shares. |
(7) | Includes options, which are immediately exercisable, to purchase 41,250 equity shares. |
(8) | Includes options, which are immediately exercisable, to purchase 41,250 equity shares. |
(9) | Includes options, which are immediately exercisable, to purchase 39,500 equity shares. |
(10) | Excludes Deutsche Bank Trust Company Americas, that holds equity shares as depositary for American Depositary Share holders. |
(11) | Allamanda Investments Pte Ltd is wholly-owned by Fullerton Financial Holdings Pte. Ltd. (formerly known as “Asia Financial Holdings Pte. Ltd.”), which is wholly- owned by Fullerton Management Pte Ltd, which is wholly-owned by Temasek Holdings (Private) Limited. |
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• | Foreign investors may own up to 74.0 % of our equity shares subject to conformity with guidelines issued by the Reserve Bank of India from time to time. This limit is under the automatic route and does not require specific approval of the Foreign Investment Promotion Board. This limit includes foreign direct investment, ADSs, Global Depositary Receipts and investment under the Portfolio Investment Scheme by foreign institutional investors and also non-resident Indians, and also includes shares acquired by subscription to private placements and public offerings and acquisition of shares from existing shareholders. At least 26 % of the paid up equity capital would have to be held by residents. | |
• | Under the Issue of Foreign Currency Convertible Bonds and Equity Shares (Through Depositary Receipt Mechanism) Scheme, 1993, foreign investors may purchase ADSs, subject to the receipt of all necessary government approvals at the time the depositary receipt program is set up. | |
• | Under the portfolio investment scheme, foreign institutional investors, subject to registration with the Securities and Exchange Board of India and the Reserve Bank of India, may hold in aggregate up to 24.0% of our paid-up equity capital and this limit may be raised to 49% by a resolution of our Board of Directors provided that no single foreign institutional investor may own more than 10.0% of our total paid-up equity capital. Our Board of Directors has raised this limit to 49%. Registered FIIs are also permitted to purchase shares or convertible debentures of an Indian company in a public offering or private placement. The shareholding of an individual non-resident Indian is restricted to 5.0% of our total paid-up equity capital. The aggregate paid-up value of the shares in a company purchased by all NRIs in the aggregate is to be limited to 10% of the paid-up capital of the company and this limit may be raised to 24 % by a special resolution at a general meeting of the shareholders of the company. | |
• | The Reserve Bank of India’s guidelines relating to acquisition by purchase or otherwise of equity shares of a private sector bank, if such acquisition results in any person owning or controlling 5.0 % or more of the paid up equity capital of the bank, are also applicable to foreign investors investing in our shares. For more details on the Reserve Bank of India guidelines relating to acquisition by purchase or otherwise of shares of a private bank, see “Supervision and Regulation — Reserve Bank of India Regulations — Ownership Restrictions”. |
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Residence |
Taxation of Distributions |
Taxation on Redemption of ADSs |
Taxation on Sale of ADSs or Equity Shares |
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Rights |
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Other Taxes |
Service Tax |
• | certain financial institutions; | |
• | insurance companies; | |
• | dealers and certain traders in securities or foreign currencies; | |
• | persons holding ADSs or equity shares as part of a hedge, straddle, conversion or other integrated | |
• | transaction; | |
• | persons whose functional currency for US federal income tax purposes is not the US dollar; | |
• | partnerships or other entities classified as partnerships for US federal income tax purposes; | |
• | persons liable for the alternative minimum tax; | |
• | tax-exempt organizations; or | |
• | persons that own or are deemed to own 10% or more of ICICI Bank voting stock. |
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Taxation of Dividends |
Taxation of Capital Gains |
Passive Foreign Investment Company Rules |
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Information reporting and backup withholding |
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Underwriters | Number of ADSs | |||
Goldman Sachs International | ||||
Merrill Lynch International | ||||
J.P. Morgan Securities Inc. | ||||
CLSA Limited | ||||
Total | ||||
No Exercise | Full Exercise | |||||||
Per ADS | US$ | US$ | ||||||
Total | US$ | US$ |
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(1) It is neither in the United States nor a United States person (as defined in Regulation S under the Securities Act). | |
(2) Such equity shares have not been registered under the Securities Act. | |
(3) It is purchasing such equity shares in an offshore transaction meeting the requirements of Rule 903 of Regulation S. | |
(4) Until the expiration of the“40-day distribution compliance period” within the meaning of Rule 903 of Regulation S, no offer or sale of such equity shares may be made within the United States or to a U.S. person or for the account or benefit of a U.S. person (as defined in Regulation S), except pursuant to an effective registration statement or an exemption from, or in a transaction not subject to, the registration requirements under the Securities Act. |
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Australia |
European Economic Area |
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a. to legal entities that are authorized or regulated to operate in the financial markets or, if not so authorized or regulated, whose corporate purpose is solely to invest in securities; | |
b. to any legal entity which has two or more of (i) an average of at least 250 employees during the last financial year; (ii) a total balance sheet of more than EUR 43,000,000; and (iii) an annual net turnover of more than EUR 50,000,000, as shown in its last annual or consolidated accounts; | |
c. by the Underwriters to fewer than 100 natural or legal persons, other than qualified investors as defined in the Prospectus Directive, or | |
d. in any other circumstances falling within Article 3(2) of the Prospectus Directive, |
Hong Kong |
Italy |
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Japan |
Kingdom of Saudi Arabia |
Singapore |
• | a corporation (which is not an accredited investor (as defined in Section 4A of the Securities and Futures Act)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or | |
• | a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary is an accredited investor, |
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(1) to an institutional investor (for corporations, under Section 274 of the Securities and Futures Act) or to a relevant person defined in Section 275(2) of the Securities and Futures Act, or to any person pursuant to an offer that is made on terms that such rights or interest are acquired at a consideration of not less than $200,000 (or its equivalent in a foreign currency) for each transactions, whether such amount is to be paid for in cash or by exchange of securities or other assets; | |
(2) where no consideration is given for the transfer; or | |
(3) where the transfer is by operation of law. |
United Kingdom |
a. only communicated or caused to be communicated, and will only communicate or cause to be communicated, any invitation or inducement to engage in investment activity (within the meaning of section 21 of the FSMA) received by it in connection with the issue or sale of any ADSs in circumstances in which section 21(1) of the FSMA does not apply to us; and | |
b. complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the ADSs in, from or otherwise involving the United Kingdom. |
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• | focus on quality growth opportunities by: |
• | maintaining and enhancing our strong retail franchise; | |
• | maintaining and enhancing our strong corporate franchise; | |
• | building an international presence; | |
• | building a rural banking franchise; and | |
• | strengthening our insurance and asset management businesses; |
• | emphasize conservative risk management practices and enhance asset quality; | |
• | use technology for competitive advantage; and | |
• | attract and retain talented professionals. |
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• | through agents; | |
• | to dealers or underwriters for resale; | |
• | directly to purchasers; or | |
• | through a combination of any of these methods of sale. |
• | at a fixed price or prices, which may be changed; | |
• | at market prices prevailing at the time of sale; | |
• | at prices related to prevailing market prices; or | |
• | at negotiated prices. |
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• | The sections “Description of Equity Shares” and “Description of the American Depositary Shares” of the Preliminary Prospectus contained in our registration statement on Form F-1 filed on March 27, 2000 (File No. 333-30132); | |
• | Our annual report on Form 20-F for the fiscal year ended March 31, 2007 filed on June 11, 2007, as amended by Form 20-F/ A filed on June 13, 2007. | |
• | With respect to each offering of securities under this prospectus, all reports on Form 20-F and any report on Form 6-K that so indicates it is being incorporated by reference, in each case, that we file with the SEC on or after the date on which the registration statement is first filed with the SEC and until the termination or completion of that offering under this prospectus. |
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Goldman Sachs International | Merrill Lynch International |