ICICI Bank Limited Annual Report 2012

FY2012 Annual Report · ICICI Bank Limited

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18th Annual Report and Accounts 2011- 2012

Pioneering

Next Generation Banking...

Pioneering

Next Generation Banking...

We live in a world in which each one of
us is getting increasingly connected. New
technologies are creating new opportunities for
all of us - both in the physical and digital world.
As recognised pioneers in adopting the latest
technologies, we are constantly developing
next gen products and applications. This
enables us to match our customers’ evolving
behaviour by delivering convenience, thereby
generating a whole new banking experience.

This year, we showcase four such
developments that are tools for the future.
These aim at enhancing customer convenience
and giving our stakeholders more value.

Bank App on
Facebook

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iWEALTH
App

Treasury
360

Contents

Message from the Chairman ................................................................

Letter from the Managing Director & CEO ............................................

Board of Directors .................................................................................

Board Committees ................................................................................

Directors’ Report ................................................................................... 07

Auditors’ Certificate on Corporate Governance ....................................

Business Overview................................................................................

Management’s Discussion and Analysis ..............................................

Key Financial Indicators .........................................................................

Particulars of Employees under

Section 217 (2A) of the Companies Act, 1956 ......................................

FINANCIALS
Auditors’ Report .................................................................................... F1

Balance Sheet .......................................................................................

Profit and Loss Account ........................................................................

Cash Flow Statement ............................................................................

Schedules ..............................................................................................

Statement pursuant to Section 212 of the

Companies Act, 1956 ............................................................................ F50

Consolidated Financial Statements of

ICICI Bank Limited and its Subsidiaries ................................................ F51

BASEL II - Pillar 3 Disclosures (Consolidated) ...................................... F93

Glossary ................................................................................................ F124

PROMOTING INCLUSIVE GROWTH ............................... P1

ENCLOSURES
Notice

Attendance Slip and Form of Proxy

REGISTERED OFFICE
Landmark
Race Course Circle
Vadodara 390 007
Tel : +91-265-6617260
Fax : +91-265-6617341

CORPORATE OFFICE
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
Tel : +91-22-26531414
Fax : +91-22-26531122

STATUTORY AUDITORS
S. R. Batliboi & Co.
Chartered Accountants
Express Towers, 6th Floor
Nariman Point
Mumbai 400 021

REGISTRAR AND
TRANSFER AGENTS
3i Infotech Limited
International Infotech Park
Tower 5, 3rd Floor
Vashi Railway Station Complex
Vashi, Navi Mumbai 400 703

Message from the Chairman

is almost entirely financed by domestic savings;
where the fiscal outlook is not burdened by the
prospect of a rapidly ageing population; and
where there is sufficient growth momentum in the
economy to support rising government revenues
and deficit reduction over time. One sees a young
country with a demographic dividend that will be
reaped for many years to come. As I travel around
the country, in big cities, small towns and rural
areas, I see economic activity humming. I see
new businesses, big and small; construction and
infrastructure building; and growing prosperity,
creating demand for goods and services of various
kinds. I see entrepreneurship and innovation
flowering everywhere, and that gives me great
hope for the future.

Of course, there are and always will be challenges,
from outside and within. Policies and strategies
will need to change when course correction
is required. The advantage we have is that we
have strong underlying fundamentals to work
with. These growth drivers need an overlay of an
appropriate policy framework that removes friction
in the economic ecosystem and helps all its parts
to realise their full potential. This will evolve over
time. But the momentum that has been created
in the economy will ensure robust and sustained
growth over the medium to long term.

Ten years ago, there would have been very few
among us who would have believed that India
could ever grow at 8%. We were still seeing
our population as a drag rather than a source of
momentum for growth. Indeed it was difficult then
to build a picture of what India could be like after a
decade, and perhaps that scepticism was justified.
What is different now is that we now have the
record of what we have achieved in the last ten
years, and how our country has transformed. We

K.V. KAMATH Chairman

As I write this annual message, there seems to be
a sense of pessimism around the Indian economy.
There are concerns about slowdown in investment,
about inflation and oil prices and about corporate
performance. Equity and currency markets are
exhibiting high volatility, which is further impacting
sentiment. But if one looks beyond the headlines
and with a slightly longer time horizon – both past
and future – one sees a rather different picture.

One sees an economy that over the last decade has
achieved a step change in its growth rates, moving
to a higher growth orbit. One sees an economy
that bounced back from the worst global financial
crisis in recent history to record over 8% growth
for two consecutive years. One sees a country
where per capita GDP has tripled in less than ten
years. One sees a country where government debt

have demonstrated our resilience in challenging
circumstances. That is what should give us the
confidence to project what we will be ten years
hence. Today, we have a solid foundation on which
to base our aspirations. If we want to look at
proxies and past experience, one need only look at
China. Research has shown that on a whole range
of indicators, two decades after we in India started
our reforms process, we are where China was
two decades after it commenced reforms. Indeed
one could argue that India’s growth model led by
domestic consumption and investment, and its
demographic dividend, will ensure a virtuous cycle
of growth for an even longer period of time.

It is for this potential that organisations have to
position themselves, while navigating short term
challenges and volatility. This is the strategic
approach at the ICICI Group. Over the last year,
the executive team has balanced the objectives
of growth, profitability and risk management in a
commendable manner, further strengthening the
balance sheet and the key drivers of profitability.
This strategy has been executed across all
businesses, while ensuring that capabilities
continue to be built to participate in the growth
opportunity that our country provides. The Board
continues to focus on a sound governance
framework that encourages this balance and
supports long-term sustainable value creation.

A key aspect of our nation’s growth agenda is
to make growth more inclusive. While we have
grown at a healthy pace and there has been
significant upward migration of household
incomes, we continue to have a large section
of the population that is deprived of the ability
to participate in this growth. We therefore need
focused efforts to enhance access – to financial
services, to healthcare, to education and to

skills that lead to employment. We also need
to improve the quality of delivery by existing
systems and institutions in each of these areas.
Through the ICICI Foundation, we are committing
not only financial resources but also intellectual
capital and management resources to each of
these areas, through programmes designed to
maximise the impact of our efforts.

I am confident about our country’s future and
about the growth and profitability of the ICICI
Group in the years ahead. The Group is strongly
positioned in each of its businesses and focused
on sustainable growth and profitability. We look
forward to the years ahead with excitement and
optimism.

With best wishes,

K.V. Kamath

Annual Report 2011-2012 3

Letter from the Managing Director & CEO

at March 31, 2012. During fiscal 2012 also, we
were able to maintain this momentum despite
the tight systemic liquidity, high interest rates
and the changing competitive landscape. In
addition, we have significantly enhanced our
retail term deposit franchise, substantially
increasing the share of retail deposits in our
total deposit base.

• Our net interest margin has improved from
2.43% in fiscal 2009 to 2.73% in fiscal 2012,
through focused efforts on both the asset
and liability sides of the balance sheet in our
domestic and overseas businesses.

• We have reduced our net non-performing
asset ratio from 2.19% at the peak to 0.62%
at March 31, 2012. The improvement in asset
quality is also evident in the reduction in the
provision charge in our profit & loss account,
which has declined from a peak of 2.29%
of average loans in fiscal 2010 to 0.68%
of average loans in fiscal 2012. Provisions
declined by 31% in fiscal 2012 on a year-on-
year basis.

• With the above improvements, we have grown
our business. After a year of consolidation in
fiscal 2010, we grew our balance sheet at a
robust pace over the last two years. In fiscal
2012, our loans and advances grew by 17%.

• Our return on assets has improved from
0.98% in fiscal 2009 to 1.50% in fiscal 2012,
demonstrating a fundamental positive shift in
our profitability.

•

ICICI Bank’s return on equity improved from
7.7% in fiscal 2009 to 11.1% in fiscal 2012.
On a consolidated basis, the return on equity
improved at an even faster pace, from 7.8%
to 13.0% over the same period, reflecting the
robust performance of not only ICICI Bank
but also our subsidiaries operating in various
segments of the financial services sector.

CHANDA KOCHHAR Managing Director & CEO

Amidst a rapidly evolving global and domestic
economic environment, we at ICICI Bank have
continued to focus on the strategic path we
outlined three years ago. We had articulated a
clear vision of where we wanted to be, and a
clear path towards getting there. Our goal was
to rebalance our funding mix & grow our retail
deposit base; substantially improve asset quality;
and enhance our profitability. Through this, we
sought to position ourselves to participate in the
growth opportunities in the Indian economy and
its global linkages. I am happy to say that we have
executed this strategy with focus and diligence.
Let me take this opportunity to share just a few
highlights of the progress we have made over
this three year journey.

• We have improved the share of low cost
current and savings accounts in our deposit
base from 28.7% at March 31, 2009 to 43.5%

Based on the above progress in our underlying
funding profile, asset quality and profitability,
we were able to achieve 26% growth in profit
after tax at the standalone level and 25% at the
consolidated level in fiscal 2012 – a year which
saw significant changes in the operating and
regulatory environment. This resilience, coupled
with our strong capital position, has enabled us
to increase the dividend to shareholders from
` 14 per share in fiscal 2011 to ` 16.50 per share
in fiscal 2012.

However, the strength of a franchise is not only
about the numbers the organisation achieves
in a year – it is also about the foundation it is
building for the future. And we have continued
to make progress in this area as well. We
have grown our branch network to over 2,750
branches and our ATM network to over 9,000
ATMs. We have leveraged technology to enhance
customer convenience and customer experience
across a range of channels including ATMs,
mobile banking and internet banking. We have
undertaken focused initiatives to improve the
quality of service delivery to our customers, in line
with our philosophy of “Khayaal Aapka” – keeping
the customer’s needs as the focal point of our
business. We continuously evaluate ourselves in
this area and seek to keep enhancing the quality
of customer experience.

Fiscal 2012 was a year which saw our subsidiaries
contributing significantly to our profits. This is
reflected in the robust growth in our consolidated
profits, as well as healthy dividend streams from
the subsidiaries to the parent Bank. A key strength
of the ICICI Group franchise is its leadership
position across various segments of financial
services in India. We continue to strengthen
this franchise. Our insurance and mutual fund
businesses are focused on enhancing their market
positioning and profitability. Our private equity
business continues to pursue new fund raising
while unlocking value from past investments.
Our securities and primary dealership businesses
are strengthening their core franchise to deliver

healthy returns amidst a rapidly evolving market
environment. Our international subsidiaries are
repositioning their businesses in the changed
global environment, with a clear path towards
improving their profitability over the medium term.

Even as we execute these strategies, we remain
conscious of our role in nation building. This
takes many forms – from the wide range of our
business activities, like infrastructure financing
and financial inclusion; to the focused efforts of
the ICICI Foundation for Inclusive Growth in the
areas of education, healthcare and sustainable
in
ICICI Foundation’s
livelihoods.
education include a six year programme to
improve the quality of school education in
Rajasthan, which seeks to benefit over seven
million children. In the area of health, ICICI
Foundation’s initiatives include a pilot project to
provide insurance for outpatient treatment to the
rural poor. Through such efforts, we carry forward
our ethos of being an institution that supports the
realisation of our country’s potential in a manner
that takes the benefits of growth to every Indian.

initiatives

Finally, I would like to say that we are optimistic
about our country’s future and the potential
for profitable growth in banking and financial
services. There could be short-term challenges
and cyclical upturns and downturns – but our
economic fundamentals are strong and will
support robust growth over the medium to long
term. It is our endeavour at the ICICI Group to
position ourselves to catalyse and participate
in this growth, on the back of a strong and
competitive franchise. We look forward to the
continued support of all our stakeholders in
this journey.

With best wishes,

Chanda Kochhar

Annual Report 2011-2012 5

Board of Directors

K. V. Kamath
Chairman

Chanda Kochhar
Managing Director & CEO

Sridar Iyengar

Homi Khusrokhan

Arvind Kumar

Swati Piramal

M. S. Ramachandran

Tushaar Shah

V. Sridar

N. S. Kannan
Executive Director
& CFO

K. Ramkumar
Executive Director

Rajiv Sabharwal
Executive Director

Presidents

Vijay Chandok

Zarin Daruwala

Pravir Vohra

Senior General Managers

Sandeep Batra
Group Compliance Officer
& Company Secretary

Kumar Ashish

Sanker Parameswaran

Suresh Badami

Murali Ramakrishnan

Sudhir Dole

Sanjay Chougule

Saurabh Singh

Mukeshkumar Jain

Dhamodaran S

G. Srinivas

K.M. Jayarao

Rakesh Jha

Ajay Gupta

Sriram H

Sanjeev Mantri

T. K. Srirang

Maninder Juneja

Suvek Nambiar

Rahul Vohra

Shilpa Kumar

Anita Pai

Ravi Narayanan

Girish Nayak

Board
Committees

Audit Committee
Sridar Iyengar, Chairman
Homi Khusrokhan, Alternate Chairman
M. S. Ramachandran
V. Sridar

Board Governance, Remuneration &
Nomination Committee
Sridar Iyengar, Chairman
K. V. Kamath
Homi Khusrokhan

Corporate Social Responsibility Committee
M. S. Ramachandran, Chairman
Arvind Kumar
Tushaar Shah
Chanda Kochhar

Credit Committee
K.V. Kamath, Chairman
Homi Khusrokhan
M. S. Ramachandran
Chanda Kochhar

Customer Service Committee
K. V. Kamath, Chairman
M. S. Ramachandran
V. Sridar
Chanda Kochhar

Fraud Monitoring Committee
V. Sridar, Chairman
K. V. Kamath
Homi Khusrokhan
Arvind Kumar
Chanda Kochhar
Rajiv Sabharwal

Information Technology Strategy
Committee
Homi Khusrokhan, Chairman
K. V. Kamath
Sridar Iyengar
Chanda Kochhar

Risk Committee
K. V. Kamath, Chairman
Sridar Iyengar
Arvind Kumar
V. Sridar
Chanda Kochhar

Share Transfer & Shareholders’/
Investors’ Grievance Committee
Homi Khusrokhan, Chairman
V. Sridar
N. S. Kannan

Committee Of Executive Directors
Chanda Kochhar, Chairperson
N. S. Kannan
K. Ramkumar
Rajiv Sabharwal

Directors’ Report

Your Directors have pleasure in presenting the Eighteenth Annual Report of ICICI Bank Limited along
with the audited statement of accounts for the year ended March 31, 2012.

FINANCIAL HIGHLIGHTS
The financial performance for fiscal 2012 is summarised in the following table:

` billion, except percentages

Fiscal 2011

Fiscal 2012

% change

Net interest income and other income

156.65

182.36

Provisions & contingencies1

Profit before tax

Profit after tax

1. Excludes provision for taxes.

22.87

67.61

51.51

15.83

88.03

64.65

16.4%

(30.8)%

30.2%

25.5%

` billion, except percentages

Consolidated profit after tax

Fiscal 2011

Fiscal 2012

% change

60.93

76.43

25.4%

Appropriations
The profit after tax of the Bank for fiscal 2012 is ` 64.65 billion after provisions and contingencies of
` 15.83 billion, provision for taxes of ` 23.38 billion and all expenses. The disposable profit is ` 114.83
billion, taking into account the balance of ` 50.18 billion brought forward from the previous year. Your
Directors have recommended a dividend at the rate of ` 16.50 per equity share of face value ` 10 for
the year and have appropriated the disposable profit as follows:

` billion

Fiscal 2011

Fiscal 2012

To Statutory Reserve, making in all ` 89.92 billion1

To Special Reserve, created and maintained in terms of Section 36(1)
(viii) of the Income Tax Act, 1961, making in all ` 38.19 billion

To Capital Reserve, making in all ` 21.84 billion

To/(from) Investment Reserve

To General Reserve, making in all ` 49.87 billion2

Dividend for the year (proposed)

12.88

5.25

0.83

(1.16)

—

16.17

6.50

0.38

—

0.02

– On equity shares @ ` 16.50 per share (@ ` 14 per share for fiscal

16.15

19.02

2011)3

– On preference shares (`)

– Corporate dividend tax

Leaving balance to be carried forward to the next year

35,000

2.02

50.18

2.20

70.54

1. Includes ` 2.00 billion at March 31, 2011 on account of amalgamation of erstwhile The Bank of Rajasthan Limited

with ICICI Bank Limited.
Includes transfer to Reserve Fund and Investment Fund account ` 10.7 million for fiscal 2012 (` 0.4 million for fiscal
2011) in accordance with regulations applicable to Sri Lanka branch and transfer to General Reserve ` 3.2 million for
fiscal 2012 (` 2.6 million for fiscal 2011).
Includes dividend for the prior year paid on shares issued after the balance sheet date and prior to the record date.

Annual Report 2011-2012 7

Bank App on
Facebook

Interactive
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iWEALTH
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Bank App on
Facebook

Today’s ‘connected
generation’ spends
significant time on
social media, which
has transformed
society by allowing
free-flowing
exchange of ideas
and connecting
people as never
before.

ICICI Bank is the first
and only bank in India
to have introduced a
powerful new ‘Bank
App’ on its official
Facebook page.
Hosted on secure
ICICI Bank servers,
the app allows
customers to access
their bank accounts
without having to
leave Facebook.
They can complete
tasks like viewing
account details,
mini statements,
requesting for
a cheque book,
applying for a debit
card and so on,
within a familiar and
frequently visited
environment.

SUBSIDIARY COMPANIES
At March 31, 2012, ICICI Bank had 17 subsidiaries as listed in the
following table:

Domestic Subsidiaries

International Subsidiaries

ICICI Prudential Life Insurance
Company Limited
ICICI Lombard General Insurance
Company Limited
ICICI Prudential Asset
Management Company Limited
ICICI Prudential Trust Limited

ICICI Bank UK PLC

ICICI Bank Canada

ICICI Bank Eurasia Limited
Liability Company
ICICI Securities Holdings Inc.2

ICICI Securities Limited

ICICI Securities Inc.3

ICICI International Limited

ICICI Securities Primary
Dealership Limited
ICICI Venture Funds Management
Company Limited
ICICI Home Finance
Company Limited
ICICI Investment Management
Company Limited

ICICI Trusteeship Services Limited

ICICI Prudential Pension Funds
Management Company Limited1

1. Subsidiary of ICICI Prudential Life Insurance Company Limited.
2. Subsidiary of ICICI Securities Limited.
3. Subsidiary of ICICI Securities Holdings Inc.

(MCA) vide

its Circular
The Ministry of Corporate Affairs
No.51/12/2007-CL-III dated February 8, 2011 has granted general
exemption under Section 212(8) of the Companies Act, 1956 to
companies from attaching the accounts of their subsidiaries in
their annual reports subject to fulfilment of certain conditions
prescribed. The Board of Directors of the Bank at its Meeting held
on April 27, 2012 noted the provisions of the circular of MCA and
passed the necessary resolution granting the requisite approvals
for not attaching the balance sheet, profit & loss account, report
of the board of directors and report of the auditors of each of
the subsidiary companies to the accounts of the Bank. The Bank
will make available these documents/details upon request by any
Member of the Bank. These documents/details will be available on
the Bank’s website (www.icicibank.com) and will also be available
for inspection by any Member of the Bank at its Registered Office
and Corporate Office and also at the registered offices of the
concerned subsidiaries. As required by Accounting Standard-21
(AS-21) issued by the Institute of Chartered Accountants of India,
the Bank’s consolidated financial statements included in this

“We have a diversified
financial services franchise,
extensive physical
distribution, strong
technology capabilities and a
healthy financial profile. We
will leverage these strengths
for growth, while continuing
our focus on profitability and
risk management to achieve
sustainable value creation.”

N. S. KANNAN
Executive Director and
Chief Financial Officer

Annual Report 2011-2012 9

Directors’ Report

“Our endeavour for service
excellence and aligning it to
the knowledge and behaviour
of our employees, has
progressed well during the
last 12 months.

Today at an intent level, every
ICICIan wills and wants the
customer, to be his purpose
of coming to work. We are
well on our way towards,
consistently translating
this intent into a Khayaal
Aapka experience, for all
our customers and in all our
engagements with them.”

K. RAMKUMAR
Executive Director

Annual Report incorporate the accounts of its subsidiaries and
other consolidating entities. A summary of key financials of the
Bank’s subsidiaries is also included in this Annual Report.

DIRECTORS
RBI, vide its letter dated January 3, 2012, approved the re-
appointment of K. Ramkumar as an Executive Director of the Bank
for a further period of two years, i.e. from February 1, 2012 till
January 31, 2014. The Members approved his appointment at the
Fifteenth Annual General Meeting (AGM) held on June 29, 2009 for
a period of five years from February 1, 2009 up to January 31, 2014.

RBI, vide its letter dated April 19, 2012, approved the re-
appointment of K. V. Kamath, Chanda Kochhar and N. S. Kannan
as Chairman, Managing Director & CEO and Executive Director &
CFO of the Bank respectively for a further period of two years i.e.
from May 1, 2012 till April 30, 2014. The Members approved the
appointment of K. V. Kamath as Chairman and Chanda Kochhar as
Managing Director & CEO through postal ballot on February 13, 2009
for a period of five years from May 1, 2009 up to April 30, 2014. The
appointment of N. S. Kannan as Executive Director & CFO was
approved by the Members at the Annual General Meeting held
on June 29, 2009 for a period of five years from May 1, 2009 up
to April 30, 2014.

With effect from May 1, 2012, K. V. Kamath, Chairman is classified
as a non-executive independent Director. In terms of the
definition of independent director as defined in Clause 49 of the
Listing Agreement executed with the stock exchanges, a director
who has been an executive of the Company in the immediately
preceding three financial years would not be classified as an
independent director. Pursuant to the said clause, K. V. Kamath
who was appointed as a Chairman with effect from May 1, 2009
was classified as a non-executive, non-independent Director as
he had been an executive of the Bank upto April 30, 2009 in his
capacity as Managing Director & CEO of the Bank.

V. Prem Watsa retired by rotation on June 27, 2011 at the last
AGM and did not seek re-appointment. The Board placed on
record its appreciation of the valuable guidance provided by Prem
Watsa to the Bank.

The Board, at its Meeting held on January 31, 2012, appointed
Swati Piramal, Director-Strategic Alliances and Communications
in Piramal Healthcare Limited as an additional Director effective
January 31, 2012. Swati Piramal holds office up to the date of the
forthcoming AGM and is eligible for appointment.

Bank App on
Facebook

Interactive
Kiosk

iWEALTH
App

Treasury
360

Interactive
Kiosk

From malls to 24x7
convenience stores,
self-service is
becoming a norm.
Increasingly, people
want to manage their
needs efficiently and
independently. This
allows them control
over the multitude of
tasks they need to do.

The Interactive Kiosk
is a revolutionary
offering that will
change the way
customers are served
at a branch. These
next gen kiosks
will enable service
requests in addition
to giving customers
access to all the ICICI
Group websites.
This will help reduce
their waiting time at
branches, thereby
offering them an
efficient banking
experience.

Annual Report 2011-2012 11

Bank App on
Facebook

Interactive
Kiosk

iWEALTH
App

Treasury
360

iWEALTH
App

Today’s affluent
and self-directed
customers armed with
their smartphones and
tablets get information
instantly. They seek
smart solutions for
everything – from
staying in touch with
friends, entertainment
and knowledge, to
managing finances.

One of the first in
banking, the smart
iWEALTH app allows
for intuitive ways
to manage wealth.
Customers can, not
only conduct regular
banking transactions
and monitor their
expenses and
portfolios on a real-
time basis, but also
carry out investments
in mutual funds. They
can receive audio
and video podcasts
on investment
products and market
developments, view
their consolidated
wealth portfolio and
get advice based on
their risk profiles and
financial goals.

The Government of India has nominated Arvind Kumar, Joint
Secretary, Department of Financial Services, Ministry of Finance,
Government of India, as a Director on the Board of the Bank effective
July 22, 2011, in place of Anup K. Pujari. The Board placed on record
its appreciation of the valuable guidance provided by Anup K. Pujari
to the Bank. In terms of Article 128A of the Articles of Association of
the Bank, Arvind Kumar is not liable to retire by rotation.

In terms of the provisions of the Companies Act, 1956 and the
Articles of Association of the Bank, Homi Khusrokhan, V. Sridar
and N. S. Kannan would retire by rotation at the forthcoming AGM
and are eligible for re-appointment. Homi Khusrokhan, V. Sridar
and N. S. Kannan have offered themselves for re-appointment.

AUDITORS
The auditors, S. R. Batliboi & Co., Chartered Accountants, will retire
at the ensuing AGM. As recommended by the Audit Committee,
the Board has proposed the appointment of S. R. Batliboi & Co.,
Chartered Accountants as statutory auditors for fiscal 2013. Their
appointment has been approved by RBI vide its letter dated April
9, 2012. You are requested to consider their appointment.

PERSONNEL
As required by the provisions of Section 217(2A) of the Companies
Act, 1956, read with Companies (Particulars of Employees)
Rules, 1975, as amended, the names and other particulars of the
employees are set out in the Annexure to the Directors’ Report.

APPOINTMENT OF NOMINEE DIRECTORS ON THE
BOARDS OF ASSISTED COMPANIES
Erstwhile ICICI Limited (ICICI) had a policy of appointing nominee
directors on the boards of certain borrower companies based on
loan covenants, with a view to enable monitoring of the operations
of those companies. Subsequent to the merger of ICICI with
ICICI Bank, the Bank continues to nominate directors on the
boards of assisted companies. Apart from the Bank’s employees,
experienced professionals from various fields are appointed as
nominee directors. At March 31, 2012, ICICI Bank had 15 nominee
directors of whom 13 were employees of the Bank, on the boards
of 25 assisted companies. The Bank has a Nominee Director Cell
for maintaining records of nominee directorships.

RISK MANAGEMENT FRAMEWORK
The Bank’s risk management strategy is based on a clear
understanding of various risks, disciplined risk assessment
and measurement procedures and continuous monitoring.
The policies and procedures established for this purpose are
continuously benchmarked with international best practices. The
Board of Directors has oversight on all the risks assumed by the
Bank. Specific Committees have been constituted to facilitate
focused oversight of various risks, as follows:

“We will continue to grow our
customer base by focusing
on providing superior
customer experience. The
increase in branch and
ATM touch points will help
us to reach customers in
many more markets. We
will leverage technology for
customer convenience and
for deepening relationships
with existing customers.
The enhancements in the
capabilities of our internet
and mobile channels would
allow customers to do all
transactions as in a branch.
Our rapidly growing rural
footprint will enable us to
offer both credit and savings
products to individual farmers
and small enterprises in
these markets.”

RAJIV SABHARWAL
Executive Director

Annual Report 2011-2012 13

Directors’ Report

(cid:79) The Risk Committee of the Board reviews risk management policies of the Bank in relation to
various risks. The Risk Committee reviews various risk policies pertaining to credit, market, liquidity,
operational and outsourcing risks, review of the Bank’s stress testing framework and group risk
management framework. The Committee reviews the risk profile of the Bank through periodic
review of the key risk indicators and risk profile templates and annual review of the Internal
Capital Adequacy Assessment Process (ICAAP). The Committee also reviews the risk profile of
its overseas banking subsidiaries annually. The Risk Committee reviews the Bank’s compliance
with risk management guidelines stipulated by the Reserve Bank of India and of the status of
implementation of the advanced approaches under the Basel framework. The Risk Committee also
reviews the stress-testing framework as part of the ICAAP. The stress-testing framework included
a wide range of Bank-specific and market (systemic) scenarios. Linkage of macroeconomic factors
to stress test scenarios was documented as a part of ICAAP. The ICAAP exercise covers the
domestic and overseas operations of the Bank, the banking subsidiaries and the material non-
banking subsidiaries. The Risk Committee also reviews the Liquidity Contingency Plan (LCP) for the
Bank and the threshold limits. During the year the Bank has also finalised the approach towards
Enterprise Risk Management framework.

(cid:79) Apart from sanctioning credit proposals, the Credit Committee of the Board reviews developments
in key industrial sectors and the Bank’s exposure to these sectors as well as to large borrower
accounts. The Credit Committee also reviews the non-performing loans, accounts under watch,
overdues and incremental sanctions.

(cid:79) The Audit Committee of the Board provides direction to and monitors the quality of the internal
audit function and also monitors compliance with inspection and audit reports of Reserve Bank of
India and statutory auditors.

(cid:79) The Asset Liability Management Committee is responsible for managing liquidity and interest rate

risk and reviewing asset-liability position of the Bank.

A summary of reviews conducted by these Committees are reported to the Board on a regular basis.

Policies approved from time to time by the Board of Directors/Committees of the Board form the
governing framework for each type of risk. The business activities are undertaken within this policy
framework. Independent groups and sub-groups have been constituted across the Bank to facilitate
independent evaluation, monitoring and reporting of various risks. These groups function independently
of the business groups/sub-groups.

The Bank has dedicated groups, namely, the Risk Management Group, Compliance Group, Corporate
Legal Group, Internal Audit Group and the Financial Crime Prevention & Reputation Risk Management
Group, with a mandate to identify, assess and monitor all of the Bank’s principal risks in accordance with
well-defined policies and procedures. Risk Management Group is further organised into the Credit Risk
Management Group, Market Risk Management Group and Operational Risk Management Group. These
groups are completely independent of all business operations and coordinate with representatives
of the business units to implement ICICI Bank’s risk management policies and methodologies. The
internal audit and compliance groups are responsible to the Audit Committee of the Board.

CORPORATE GOVERNANCE
The corporate governance framework at ICICI Bank is based on an effective independent Board, the
separation of the Board’s supervisory role from the executive management and the constitution of Board
Committees, generally comprising a majority of independent Directors and chaired by independent
Directors, to oversee critical areas.

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Annual Report 2011-2012 15

Directors’ Report

I. Philosophy of Corporate Governance
ICICI Bank’s corporate governance philosophy encompasses not only regulatory and legal requirements,
such as the terms of listing agreements with stock exchanges, but also several voluntary practices aimed
at a high level of business ethics, effective supervision and enhancement of value for all stakeholders.
The corporate governance framework adopted by the Bank already encompasses a significant portion
of the recommendations contained in the ‘Corporate Governance Voluntary Guidelines 2009’ issued by
the Ministry of Corporate Affairs, Government of India.

Whistle Blower Policy
ICICI Bank has formulated a Whistle Blower Policy. In terms of this policy, employees of ICICI Bank and
its subsidiaries are free to raise issues, if any, on breach of any law, statute or regulation by the Bank
and on the accounting policies and procedures adopted for any area or item and report them to the
Audit Committee through specified channels. This mechanism has been communicated and posted on
the Bank’s intranet.

ICICI Bank Code of Conduct for Prevention of Insider Trading
In accordance with the requirements of the Securities and Exchange Board of India (SEBI) (Prohibition
of Insider Trading) Regulations, 1992, ICICI Bank has instituted a comprehensive code of conduct for
prevention of insider trading.

Group Code of Business Conduct and Ethics
The Board of Directors has approved a Group Code of Business Conduct and Ethics for Directors and
employees of the ICICI Group. The Code aims at ensuring consistent standards of conduct and ethical
business practices across the constituents of the ICICI Group. This Code is also available on the website
of the Bank (www.icicibank.com). Pursuant to Clause 49 of the Listing Agreement, a confirmation from
the Managing Director & CEO regarding compliance with the Code by all the Directors and senior
management is given on page 34 of the Annual Report.

CEO/CFO Certification
In terms of Clause 49 of the Listing Agreement, the certification by the Managing Director & CEO and
Executive Director & CFO on the financial statements and internal controls relating to financial reporting
has been obtained.

Board of Directors
ICICI Bank has a broad-based Board of Directors, constituted in compliance with the Banking Regulation
Act, 1949, the Companies Act, 1956 and listing agreements entered into with stock exchanges, and in
accordance with good corporate governance practices. The Board functions either as a full Board or
through various committees constituted to oversee specific operational areas. The Board has constituted
ten committees, namely, Audit Committee, Board Governance, Remuneration & Nomination Committee,
Corporate Social Responsibility Committee, Credit Committee, Customer Service Committee, Fraud
Monitoring Committee, Information Technology Strategy Committee, Risk Committee, Share Transfer
& Shareholders’/Investors’ Grievance Committee and Committee of Executive Directors. These
Board Committees other than the Committee of Executive Directors currently consist of majority of
independent Directors and most of the Committees are chaired by independent Directors.

At March 31, 2012, the Board of Directors consisted of 12 members. There were six Meetings of
the Board during fiscal 2012 - on April 28, July 29, September 15-16 and October 31 in 2011 and
January 31 and February 9-10 in 2012. The names of the Directors, their attendance at Board Meetings

during the year, attendance at last AGM and the number of other directorships and Board Committee
memberships held by them at March 31, 2012 are set out in the following table:

Name of Director

Non-Executive Director

K. V. Kamath (Chairman- Non-
executive Director -upto April 30,
2012. Independent Director w.e.f.
May 1, 2012)

Independent Directors

Sridar Iyengar

Homi Khusrokhan

Arvind Kumar(a) (w.e.f. July 22, 2011)

Swati Piramal (w.e.f. January 31,
2012)

Anup K. Pujari(a) (upto July 22, 2011)

M. S. Ramachandran

Tushaar Shah

V. Sridar

V. Prem Watsa (upto June 27, 2011)

Wholetime Directors

Chanda Kochhar

N. S. Kannan

K. Ramkumar

Rajiv Sabharwal

Board
Meetings
attended
during
the year

Attendance
at last
AGM
(June 27,
2011)

Number of other
directorships

Of other
Companies2

Of Indian
public
limited
Companies1

Number
of other
committee3
memberships

6/6

Present

—

6/6

5/6

2/5

0/1

6/6

4/6

5/6

0/1

6/6

Present

Absent

N.A.

Absent

Present

Absent

Present

—

6(2)

4(1)

1(1)

—

8(4)

—

(a) Nominee of Government of India.

1. Comprises public limited companies incorporated in India.
2. Comprises private limited companies incorporated in India and foreign companies but excludes Section 25

companies and foreign companies not for profit.

3. Comprises only Audit Committee and Share Transfer & Shareholders’/Investors’ Grievance Committee of Indian

public limited companies. Figures in parentheses indicate Committee Chairpersonships.

Annual Report 2011-2012 17

Directors’ Report

In terms of Clause 49 of the listing agreement, the number of Committees (Audit Committee and
Share Transfer & Shareholders’/Investors’ Grievance Committee) of public limited companies in which
a Director is a member/chairman were within the limits provided under Clause 49 for all the Directors
of the Bank.

II. Audit Committee
Terms of Reference
The Audit Committee provides direction to the audit function and monitors the quality of internal and
statutory audit. The responsibilities of the Audit Committee include overseeing the financial reporting
process to ensure fairness, sufficiency and credibility of financial statements, recommendation of
appointment and removal of central and branch statutory auditors and chief internal auditor and fixation
of their remuneration, approval of payment to statutory auditors for other permitted services rendered
by them, review of functioning of Whistle Blower Policy, review of the quarterly and annual financial
statements before submission to the Board, review of the adequacy of internal control systems and the
internal audit function, review of compliance with inspection and audit reports and reports of statutory
auditors, review of the findings of internal investigations, review of statement of significant related party
transactions, review of management letters/letters on internal control weaknesses issued by statutory
auditors, reviewing with the management, the statement of uses/application of funds raised through
an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilised for the
purposes other than those stated in the offer document/prospectus/notice and the report submitted
by the monitoring agency, monitoring the utilisation of proceeds of a public or rights issue and making
appropriate recommendations to the Board to take steps in this matter, discussion on the scope of
audit with external auditors and examination of reasons for substantial defaults, if any, in payment to
stakeholders. The Audit Committee is also empowered to appoint/oversee the work of any registered
public accounting firm, establish procedures for receipt and treatment of complaints received regarding
accounting and auditing matters and engage independent counsel as also provide for appropriate
funding for compensation to be paid to any firm/advisors. In addition, the Audit Committee also
exercises oversight on the regulatory compliance function of the Bank. The Audit Committee is also
empowered to approve the appointment of the CFO (i.e., the whole-time Finance Director or any other
person heading the finance function or discharging that function) after assessing the qualifications,
experience and background, etc. of the candidate.

Composition
The Audit Committee currently comprises four independent Directors and is chaired by Sridar Iyengar,
an independent Director. There were seven Meetings of the Committee during the year.

The details of the composition of the Committee and attendance at its Meetings are set out in the
following table:

Name of Member

Sridar Iyengar, Chairman

Homi Khusrokhan, Alternate Chairman

M. S. Ramachandran

V. Sridar

Number of meetings attended

7/7

4/7

5/7

7/7

III. Board Governance, Remuneration & Nomination Committee
Terms of Reference
The functions of the Committee include recommendation of appointments to the Board, evaluation of the
performance of the Managing Director & CEO and wholetime Directors on predetermined parameters,

recommendation to the Board of the remuneration (including performance bonus and perquisites) to
wholetime Directors, approval of the policy for and quantum of bonus payable to the members of the
staff, framing of guidelines for the Employees Stock Option Scheme and recommendation of grant of
ICICI Bank stock options to the employees and wholetime Directors of ICICI Bank and its subsidiary
companies.

Composition
The Board Governance, Remuneration & Nomination Committee currently comprises three independent
Directors and is chaired by Sridar Iyengar, an independent Director. There were five Meetings of the
Committee during the year. The details of the composition of the Committee and attendance at its
Meetings are set out in the following table:

Name of Member

Sridar Iyengar, Chairman

K. V. Kamath

V. Prem Watsa (upto June 27, 2011)

Homi Khusrokhan (w.e.f. April 28, 2011)

Number of meetings attended

5/5

0/1

3/4

Remuneration policy
The Board Governance, Remuneration & Nomination Committee determines and recommends to
the Board the amount of remuneration, including performance bonus and perquisites, payable to the
wholetime Directors.

The following table sets out the details of remuneration (including perquisites and retiral benefits) paid
to wholetime Directors for fiscal 2012.

Chanda
Kochhar

Details of Remuneration (`)
K. Ramkumar

N. S.
Kannan

Rajiv
Sabharwal

Basic

Performance bonus for fiscal
20121

13,260,000

8,760,000

12,996,000

8,712,000

Allowances and perquisites2

11,510,057

7,626,422

8,037,172

Contribution to provident fund

1,591,200

1,051,200

Contribution to
superannuation fund

1,989,000

1,314,000

8,280,000

8,316,000

7,036,774

993,600

1,242,000

Contribution to gratuity fund

1,104,558

729,708

689,724

Stock options (Numbers)3

Fiscal 20121

Fiscal 2011

Fiscal 2010

210,000

105,000

100,000

1. Subject to RBI approval. Bonus will be deferred in line with RBI’s guidelines on compensation with only 60%
of the bonus paid on approval and the balance deferred equally over fiscal 2013, fiscal 2014 and fiscal 2015.
2. Allowances and perquisites exclude valuation of the employee stock options exercised during fiscal 2012 as
it does not constitute remuneration for the purposes of Companies Act, 1956. However, tax has been paid in
accordance with the provisions of the Income Tax Act.

Annual Report 2011-2012 19

Directors’ Report

3. Excludes special grant of stock options approved by RBI on January 17, 2011 aggregating to 250,000 for

Chanda Kochhar and 150,000 each for N. S. Kannan, K. Ramkumar and Rajiv Sabharwal.

Perquisites (evaluated as per Income-tax rules wherever applicable and otherwise at actual cost to the
Bank) such as the benefit of the Bank’s furnished accommodation, gas, electricity, water and furnishings,
club fees, group insurance, use of car and telephone at residence or reimbursement of expenses in lieu
thereof; medical reimbursement, leave and leave travel concession, education benefits, provident fund,
superannuation fund and gratuity, were provided in accordance with the scheme(s) and rule(s) applicable
from time to time. The Board, at its Meeting held on April 27, 2012, approved a revision in supplementary
allowance for wholetime Directors. Consequently, the Managing Director & CEO, Chanda Kochhar shall
be paid supplementary allowance of ` 870,862 per month, N. S. Kannan, Executive Director & CFO and
K. Ramkumar, Executive Director shall each be paid a supplementary allowance of ` 596,037 per month
and Rajiv Sabharwal, Executive Director shall be paid a supplementary allowance of ` 576,713 per month
effective April 1, 2012 subject to approval of RBI and Members. Approval of Members for the same
is being sought at the current AGM. In line with the staff loan policy applicable to specified grades of
employees who fulfill prescribed eligibility criteria to avail loans for purchase of residential property, the
wholetime Directors are also eligible for housing loans subject to approvals of RBI.

As provided under Article 132 of the Articles of Association of the Bank, the fees payable to a Director
(other than to the nominee of Government of India) for attending a Meeting of the Board or Committee
thereof are decided by the Board of Directors from time to time within the limits prescribed by the
Companies Act, 1956 or the Central Government. The Board of Directors has approved the payment
of ` 20,000 as sitting fees for each Meeting of Board or Committee attended. This amount is within
the limits prescribed by the Ministry of Corporate Affairs vide its Notification dated July 24, 2003.
Approval of the Members for payment of sitting fees to the Directors was obtained at the AGM held on
August 20, 2005. The Board of Directors has approved payment of remuneration of ` 2,000,000 per
annum to K. V. Kamath plus payment of sitting fees, maintaining a Chairman’s office at the Bank’s
expense, bearing expenses for travel on official visits and participation in various forums (both in India
and abroad) as Chairman of the Bank and bearing travel/halting/other expenses and allowances for
attending to his duties as Chairman of the Bank. The Members of the Company vide Resolution passed
by way of postal ballot the result of which was declared on February 13, 2009 had approved the above
payment of remuneration for a period of five years from May 1, 2009. RBI and the Central Government
have vide their letters dated March 12, 2009 and January 8, 2010 respectively approved the payment
of above remuneration. RBI while approving the re-appointment of Chairman for a further period of two
years from May 1, 2012 up to April 30, 2014 has confirmed the terms and conditions of re-appointment
which includes the above payment.

Information on the total sitting fees paid to each non-wholetime Director during fiscal 2012 for attending
Meetings of the Board and its Committees is set out in the following table:

Name of Director

K. V. Kamath

Sridar Iyengar

Homi Khusrokhan

Swati Piramal

M. S. Ramachandran

Tushaar Shah

V. Sridar

V. Prem Watsa

Total

Amount (`)
1,080,000

480,000

860,000

—

740,000

100,000

740,000

—

4,000,000

The details of shares and convertible instruments of the Bank, held by the non-wholetime Directors as
on March 31, 2012 are set out in the following table:

Name of Director

K. V. Kamath

Sridar Iyengar

Homi Khusrokhan

Anup K. Pujari

Arvind Kumar

M. S. Ramachandran

Tushaar Shah

V. Sridar

V. Prem Watsa

Instrument

No. of shares held

Equity

—

Equity

—

Equity

-—

490,000

-—

5001

—

500

-—

1. 500 shares held jointly with relatives.

IV. Corporate Social Responsibility Committee
Terms of Reference
The functions of the Committee include review of corporate social responsibility initiatives undertaken
by the ICICI Group and the ICICI Foundation for Inclusive Growth, make recommendations to the Board
with respect to the corporate social responsibility initiatives, policies and practices of the ICICI Group
and to review and implement, if required, any other matter related to corporate social responsibility
initiatives as recommended/suggested by RBI or any other body.

Composition
The Corporate Social Responsibility Committee currently comprises four Directors including three
independent Directors and the Managing Director & CEO. The Committee is chaired by M. S.
Ramachandran, an independent Director. Two Meetings of the Committee were held during fiscal 2012.
The details of the composition of the Committee and attendance at its Meetings are set out in the
following table:

Name of Member

M. S. Ramachandran, Chairman

Arvind Kumar1 (w.e.f. July 29, 2011)

Anup K. Pujari (upto July 22, 2011)

Tushaar Shah

Chanda Kochhar

Number of meetings attended

2/2

0/1

1/2

2/2

1. Participated in one Meeting through video-conference.

V. Credit Committee
Terms of Reference
The functions of the Committee include review of developments in key industrial sectors and approval
of credit proposals as per authorisation approved by the Board.

Annual Report 2011-2012 21

Directors’ Report

Composition
The Credit Committee currently comprises four Directors including three independent Directors and the
Managing Director & CEO. The Committee is chaired by K. V. Kamath, currently an independent Director.
There were twenty-three Meetings of the Committee during the year. The details of the composition of
the Committee and attendance at its Meetings are set out in the following table:

Name of Member

K. V. Kamath, Chairman

Homi Khusrokhan

M. S. Ramachandran

Chanda Kochhar

Number of meetings attended

22/23

18/23

19/23

23/23

VI. Customer Service Committee
Terms of Reference
The functions of this Committee include review of customer service initiatives, overseeing the
functioning of the Customer Service Council and evolving innovative measures for enhancing the quality
of customer service and improvement in the overall satisfaction level of customers.

Composition
The Customer Service Committee currently comprises four Directors including three independent
Directors and the Managing Director & CEO. It is chaired by K. V. Kamath, currently an independent
Director. There were six Meetings of the Committee during the year. The details of the composition of
the Committee and attendance at its Meetings are set out in the following table:

Name of Member

K. V. Kamath, Chairman

M. S. Ramachandran

V. Sridar

Chanda Kochhar

Number of meetings attended

6/6

5/6

6/6

VII. Fraud Monitoring Committee
Terms of Reference
The Committee monitors and reviews all frauds involving an amount of ` 10.0 million and above so as
to identify the systemic lacunae, if any, that may have facilitated perpetration of the fraud and to put
in place measures to rectify the same, identify the reasons for delay in detection, if any, report to top
management of the Bank and RBI, monitor progress of investigation, and recovery position, ensure
that staff accountability is examined at all levels in all the cases of frauds and action, if required, is
completed quickly without loss of time and review of efficacy of the remedial action taken to prevent
recurrence of frauds, such as strengthening of internal controls and putting in place other measures as
may be considered relevant to strengthen preventive measures against frauds.

Composition
The Fraud Monitoring Committee currently comprises six Directors including four independent
Directors. The Committee is chaired by V. Sridar, an independent Director. There were nine Meetings of
the Committee during the year. The details of the composition of the Committee and attendance at its
Meetings are set out in the following table:

Name of Member

V. Sridar, Chairman

K. V. Kamath

Homi Khusrokhan

Arvind Kumar (w.e.f. July 29, 2011)

Anup K. Pujari (upto July 22, 2011)

Chanda Kochhar

Rajiv Sabharwal

Number of meetings attended

9/9

8/9

1/7

0/2

9/9

VIII. Information Technology Strategy Committee
Terms of Reference
The Board of Directors at its Meeting held on September 15-16, 2011 constituted Information Technology
(IT) Strategy Committee effective October 31, 2011. The Committee is empowered to approve IT
Strategy and policy documents, ensuring that IT strategy is aligned with business strategy, reviewing
IT risks, ensuring proper balance of IT investments for sustaining the Bank’s growth, overseeing the
aggregate funding of IT at a Bank-level, and ascertaining if the management has resources to ensure
the proper management of IT risks and reviewing contribution of IT to businesses.

Composition
The IT Strategy Committee currently comprises four Directors including three independent Directors
and the Managing Director & CEO. The Committee is chaired by Homi Khusrokhan, an independent
Director. One Meeting of the Committee was held during fiscal 2012. The details of the composition of
the Committee and attendance at its Meeting is set out in the following table:

Name of Member

Homi Khusrokhan, Chairman

K. V. Kamath

Sridar Iyengar

Chanda Kochhar

Number of meetings attended

1/1

IX. Risk Committee
Terms of Reference
The Committee is empowered to review ICICI Bank’s risk management policies in relation to various
risks (credit, market, liquidity, operational and reputation risks), investment policies and strategy and
regulatory and compliance issues in relation thereto. The Committee is also empowered to review risk
return profile of the Bank, capital adequacy based on risk profile of the Bank’s balance sheet, Basel-II
implementation, business continuity plan and disaster recovery plan, key risk indicators and significant
risk exposures and implementation of enterprise risk management.

Composition
The Risk Committee currently comprises five Directors, including four independent Directors and the
Managing Director & CEO. It is chaired by K. V. Kamath, currently an independent Director. There were
six Meetings of the Committee during the year. The details of the composition of the Committee and
attendance at its Meetings are set out in the following table:

Annual Report 2011-2012 23

Directors’ Report

Name of Member

K. V. Kamath, Chairman

Sridar Iyengar

Arvind Kumar (w.e.f. July 29, 2011)

Anup K. Pujari (upto July 22, 2011)

V. Sridar

V. Prem Watsa (upto June 27, 2011)

Chanda Kochhar

Number of meetings attended

6/6

5/6

0/4

0/2

6/6

0/1

5/6

X. Share Transfer & Shareholders’/Investors’ Grievance Committee
Terms of Reference
The functions and powers of the Committee include approval and rejection of transfer or transmission
of equity shares, preference shares, bonds, debentures and securities, issue of duplicate certificates,
allotment of shares and securities issued from time to time, including those under stock options,
review and redressal of shareholders’ and investors’ complaints, delegation of authority for opening
and operation of bank accounts for payment of interest, dividend and redemption of securities and the
listing of securities on stock exchanges.

Composition
The Share Transfer & Shareholders’/Investors’ Grievance Committee currently comprises three Directors
including two independent Directors. It is chaired by Homi Khusrokhan, an independent Director. There
were four Meetings of the Committee during the year. The details of the composition of the Committee
and attendance at its Meetings are set out in the following table:

Name of Member

Homi Khusrokhan, Chairman

V. Sridar

N. S. Kannan

Number of meetings attended

4/4

Sandeep Batra, Senior General Manger is the Group Compliance Officer & Company Secretary. 64
shareholder complaints received in fiscal 2012 were processed. At March 31, 2012, no complaints
were pending.

XI. Committee of Executive Directors
Terms of reference

The powers of the Committee include approval/renewal of credit proposals, restructuring and settlement
as per the authorisation approved by the Board, approval of detailed credit norms related to individual
business groups, approvals to facilitate introduction of new products and product variants, programme
lending within each business segment and asset or liability category, including permissible deviations.
The Committee also approves and reviews from time to time limits on exposure to any group or individual
company as well as approves underwriting assistance to equity or equity linked issues and subscription
to equity shares or equity linked products or preference shares. The Committee also exercises powers
in relation to borrowing and treasury operations as approved by the Board, empowers officials of the
Bank or its Group Companies through execution of Power of Attorney, if required under the Common
Seal of the Bank and further exercises powers in relation to premises and property related matters.

Composition

The Committee of Executive Directors currently comprises all four wholetime Directors and is chaired
by Chanda Kochhar, Managing Director & CEO. The other Members are N. S. Kannan, K. Ramkumar and
Rajiv Sabharwal.

XII. Other Committees

In addition to the above, the Board has from time to time constituted various committees, namely,
Asset Liability Management Committee, Committee for Identification of Wilful Defaulters, Grievance
Redressal Committee for borrowers identified as Wilful Defaulters, Committee of Senior Management
(comprising certain wholetime Directors and executives) and Committee of Executives, Compliance
Committee, Product & Process Approval Committee, Regional Committees for India and overseas
operations, Outsourcing Committee, Operational Risk Management Committee and other Committees
(all comprising executives). These committees are responsible for specific operational areas like asset
liability management, approval of credit proposals, approval of products and processes and management
of operational risk, under authorisation/supervision of the Board and its Committees.

XIII. General Body Meetings

The details of General Body Meetings held in the last three years are given below:

General Body Meeting

Day, Date

Time

Venue

Fifteenth AGM

Monday, June 29, 2009

Extra-ordinary General
Meeting

Monday, June 21, 2010

1.30 p.m Professor Chandravadan Mehta
1.30 p.m
Auditorium, General Education

Centre, Opposite D. N. Hall Ground,

Sixteenth AGM

Monday, June 28, 2010

1.30 p.m

The Maharaja Sayajirao University,

Seventeenth AGM

Monday, June 27, 2011

1.30 p.m

Pratapgunj, Vadodara 390 002

The details of the Resolution passed under Section 44A of the Banking Regulation Act, 1949 and
Reserve Bank of India’s guidelines for merger/amalgamation of private sector banks dated May 11,
2005 are given below:

General Body Meeting

Day, Date

Resolution

Extra-ordinary General
Meeting

Monday, June 21, 2010 Merger of The Bank of Rajasthan Limited

with ICICI Bank Limited (passed by requisite
majority as provided under Section 44A of the
Banking Regulation Act, 1949)

Postal Ballot

At present, no special resolution is proposed to be passed through postal ballot. No resolution was
passed through postal ballot during fiscal 2012.

XIV. Disclosures
1. There are no materially significant transactions with related parties i.e., directors, management,

subsidiaries, or relatives conflicting with the Bank’s interests. The Bank has no promoter.

2. Penalties or strictures imposed on the Bank by any of the stock exchanges, the Securities & Exchange
Board of India (SEBI) or any other statutory authority, for any non-compliance on any matter relating
to capital markets, during the last three years are detailed:

Annual Report 2011-2012 25

Directors’ Report

(cid:3)

(cid:135)(cid:3) (cid:49)(cid:82)(cid:3) (cid:83)(cid:72)(cid:81)(cid:68)(cid:79)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3) (cid:82)(cid:85)(cid:3) (cid:86)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3) (cid:75)(cid:68)(cid:89)(cid:72)(cid:3) (cid:69)(cid:72)(cid:72)(cid:81)(cid:3) (cid:76)(cid:80)(cid:83)(cid:82)(cid:86)(cid:72)(cid:71)(cid:3) (cid:82)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:37)(cid:68)(cid:81)(cid:78)(cid:3) (cid:69)(cid:92)(cid:3) (cid:68)(cid:81)(cid:92)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3) (cid:72)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)
or SEBI for any non-compliance on any matter relating to capital markets during the last
three years.

(cid:135)(cid:3) (cid:53)(cid:37)(cid:44)(cid:15)(cid:3)vide letter dated April 26, 2011, has imposed a penalty of ` 1.5 million on the Bank along
with 18 other banks for violation of the guidelines on derivatives and extant instructions
thereunder.

In terms of the Whistle Blower Policy of the Bank, no employee of the Bank has been denied
access to the Audit Committee.

XV. Means of Communication
It is ICICI Bank’s belief that all stakeholders should have access to complete information regarding its
position to enable them to accurately assess its future potential. ICICI Bank disseminates information
on its operations and initiatives on a regular basis. ICICI Bank‘s website (www.icicibank.com) serves
as a key awareness facility for all its stakeholders, allowing them to access information at their
convenience. It provides comprehensive information on ICICI Bank’s strategy, business segments,
financial performance, operational performance, share price movements and the latest press releases.

ICICI Bank’s dedicated investor relations personnel respond to specific queries and play a proactive role
in disseminating information to both analysts and investors. In accordance with SEBI and Securities
Exchange Commission (SEC) guidelines, all information which could have a material bearing on ICICI
Bank’s share price is released through leading domestic and global wire agencies. The information is
also disseminated to the National Stock Exchange of India Limited (NSE), the Bombay Stock Exchange
Limited (BSE), New York Stock Exchange (NYSE), Singapore Stock Exchange and Japan Securities
Dealers Association from time to time.

The financial and other information filed by the Bank from time to time is also available on the Corporate
Filing and Dissemination System maintained by BSE and NSE and can be accessed on the URL
www.corpfiling.co.in. The quarterly compliance report on corporate governance as prescribed under
Clause 49 of the Listing Agreement and the shareholding pattern of the Bank as prescribed under
Clause 35 of the Listing Agreement executed with the Stock Exchanges are also filed through NSE
Electronic Application Processing (NEAP) System.

ICICI Bank’s quarterly financial results are published either in the Financial Express (Mumbai, Pune,
Ahmedabad, New Delhi, Lucknow, Chandigarh, Kolkata, Chennai, Bangalore, Hyderabad, Kochi editions)
or the Business Standard (Ahmedabad, Bangalore, Bhubaneshwar, Chandigarh, Chennai, Hyderabad,
Kochi, Kolkata, Lucknow, Mumbai, New Delhi and Pune editions), and Vadodara Samachar (Vadodara).
The financial results, official news releases, analyst call transcripts and presentations are also available
on the Bank’s website.

The Management’s Discussion & Analysis forms part of the Annual Report.

General Shareholder Information

General Body Meeting

Day, Date & Time

Venue

Eighteenth AGM

Monday, June 25, 2012
12.15 p.m.

Professor Chandravadan Mehta Auditorium,
General Education Centre, Opposite D. N. Hall
Ground, The Maharaja Sayajirao University,
Pratapgunj, Vadodara 390 002.

Financial Calendar
Book Closure
Dividend Payment Date

:
:
:

April 1 to March 31
June 2, 2012 to June 25, 2012
June 26, 2012

Listing of equity shares/ADSs on Stock Exchanges (with stock code)

Stock Exchange

Code for ICICI Bank

Bombay Stock Exchange Limited (BSE)
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001

National Stock Exchange of India Limited (NSE)
Exchange Plaza, Bandra-Kurla Complex
Bandra (East), Mumbai 400 051

New York Stock Exchange (ADSs)2
11, Wall Street, New York, NY 10005, United States of America
1. FII segment of BSE.
2. Each ADS of ICICI Bank represents two underlying equity shares.

532174
&
6321741

ICICIBANK

IBN

ICICI Bank has paid annual listing fees on its capital for the relevant periods to BSE and NSE where its
equity shares are listed and NYSE where its ADSs are listed.

Market Price Information
The reported high and low closing prices and volume of equity shares of ICICI Bank traded during fiscal
2012 on BSE and NSE are set out in the following table:

Month

High `

BSE
Low `

Volume

High `

NSE
Low `

Volume

Total Volume
on BSE and
NSE

April 2011

1,128.05 1,082.20

8,239,747 1,126.85 1,084.10

74,363,132

82,602,879

May 2011

1,098.20 1,006.55

7,903,271 1,098.30 1,006.90

72,305,902

80,209,173

June 2011

1,093.10 1,014.35

6,656,345 1,094.65 1,014.00

65,255,815

71,912,160

July 2011

1,099.10 1,017.55

7,747,500 1,099.75 1,017.45

55,832,570

63,580,070

August 2011

1,043.65

820.15

10,826,251 1,045.35

820.25

89,640,062

100,466,313

September 2011 919.30

844.65

9,229,678

918.95

843.75

78,391,259

87,620,937

October 2011

932.95

778.95

10,688,505

933.35

779.25

79,226,667

89,915,172

November 2011

895.15

714.15

14,099,002

895.00

712.45

133,614,491

147,713,493

December 2011

787.65

652.40

16,102,575

787.70

653.40

126,032,073

142,134,648

January 2012

902.00

696.45

14,091,666

902.15

696.55

109,792,222

123,883,888

February 2012

991.05

886.90

15,151,844

991.30

887.45

118,255,718

133,407,562

March 2012

953.85

853.20

12,281,567

953.90

853.25

104,029,786

116,311,353

Fiscal 2012

1,128.05

652.40 133,017,951 1,126.85

653.40 1,106,739,697 1,239,757,648

Annual Report 2011-2012 27

Directors’ Report

The reported high and low closing prices and volume of ADSs of ICICI Bank traded during fiscal 2012
on the NYSE are given below:

Month
April 2011
May 2011
June 2011
July 2011
August 2011
September 2011
October 2011
November 2011
December 2011
January 2012
February 2012
March 2012
Fiscal 2012

High (US$)
50.67
49.30
49.30
50.00
47.28
39.51
38.88
36.12
30.72
36.21
39.79
38.08
50.67

Low (US$) Number of ADS traded
27,320,523
31,197,646
31,925,960
25,277,290
50,386,163
45,462,116
54,575,200
52,420,629
49,714,662
60,734,163
51,370,232
45,480,772
525,865,356

48.50
44.83
45.32
45.63
35.92
34.00
31.94
27.44
24.43
27.90
36.06
33.77
24.43

The performance of the ICICI Bank equity share relative to the BSE Sensitive Index (Sensex), BSE Bank
Index (Bankex) and NYSE Financial Index during the period April 1, 2011 to March 31, 2012 is given in
the following chart:

110.00

100.00

90.00

80.00

70.00

60.00

50.00

1
1

r
p
A

1
1

y
a
M

1
1
n
u
J

1
1

u
J

1
1
g
u
A

1
1
p
e
S

1
1

t
c
O

1
1

v
o
N

1
1

c
e
D

2
1
n
a
J

2
1
b
e
F

2
1

r
a
M

Sensex

Bankex

NYSE Financial Index

ICICI Bank

Share Transfer System
ICICI Bank’s investor services are handled by 3i Infotech Limited (3i Infotech). 3i Infotech is a SEBI
registered Category I – Registrar to an Issue & Share Transfer (R&T) Agent. 3i Infotech is a global
information technology company providing technology solutions and in addition to R&T services provides
software products, managed IT Services, application software development & maintenance, payment
solutions, business intelligence, document imaging & digitisation, IT consulting and various transaction
processing services. 3i Infotech’s quality certifications include SEI CMMI Level 5 for software business,
ISO 9001:2000 for BPO (including R&T) and ISO 27001:2005 for infrastructure services.

ICICI Bank’s equity shares are traded mainly in dematerialised form. During the year, 1,385,899 equity
shares involving 6,158 certificates were dematerialised. At March 31, 2012, 99.31% of paid-up equity
share capital (including equity shares represented by ADS constituting 26.85% of the paid-up equity
share capital) are held in dematerialised form.

Physical share transfer requests are processed and the share certificates are returned normally within a
period of seven days from the date of receipt, if the documents are correct, valid and complete in all respects.

The number of equity shares of ICICI Bank transferred during the last three years (excluding electronic
transfer of shares in dematerialised form) is given below:

Number of transfer deeds

Number of shares transferred

Fiscal 2010

Fiscal 2011

Fiscal 2012

2,018

2,429

282,433

368,234

1,392

86,423

As required under Clause 47(c) of the listing agreements entered into by ICICI Bank with stock exchanges,
a certificate is obtained every six months from a practising Company Secretary that all transfers have
been completed within the stipulated time. The certificates are forwarded to BSE and NSE.

In terms of SEBI’s circular no. D&CC/FITTC/CIR-16 dated December 31, 2002, as amended vide circular
no. CIR/MRD/DP/30/2010 dated September 6, 2010 an audit is conducted on a quarterly basis by a firm
of Chartered Accountants, for the purpose of, inter alia, reconciliation of the total admitted equity share
capital with the depositories and in the physical form with the total issued/paid up equity share capital
of ICICI Bank. Certificates issued in this regard are placed before the Share Transfer & Shareholders’/
Investors’ Grievance Committee and forwarded to BSE and NSE, where the equity shares of ICICI Bank
are listed.

Physical Share Disposal Scheme
With a view to mitigate the difficulties experienced by physical shareholders in disposing off their shares,
ICICI Bank, in the interest of investors holding shares in physical form (upto 50 shares) has instituted a
Physical Share Disposal Scheme. The scheme was started in November 2008 and continues to remain
open. Interested shareholders may contact the R&T Agent, 3i Infotech Limited for further details.

Registrar and Transfer Agents
The Registrar and Transfer Agent of ICICI Bank is 3i Infotech Limited. Investor services related queries/
requests/complaints may be directed to L. N. Rajan at the address as under:

3i Infotech Limited
International Infotech Park
Tower 5, 3rd Floor
Vashi Railway Station Complex
Vashi, Navi Mumbai 400 703
Maharashtra, India
Tel No.
Fax No.
E-mail

: +91-22-6792 8000
: +91-22-6792 8099
:

investor@icicibank.com

Queries relating to the operational and financial performance of ICICI Bank may be addressed to:
Rakesh Jha/Anindya Banerjee/Rakesh Mookim
ICICI Bank Limited
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
Tel No.
Fax No.
E-mail

: +91-22-2653 1414
: +91-22-2653 1175
:

ir@icicibank.com

Annual Report 2011-2012 29

Directors’ Report

Information on Shareholding
Shareholding pattern of ICICI Bank at March 31, 2012

Shareholder Category

% holding

Deutsche Bank Trust Company Americas (Depository for ADS holders)

309,514,994

FIIs, NRIs, Foreign Banks, Foreign Companies, OCBs and Foreign Nationals

418,530,775

Insurance Companies

Bodies Corporate (including Government Companies)

Banks & Financial Institutions

Mutual Funds

Individuals, HUF and Trusts

Total

26.85

36.31

17.68

4.49

0.12

8.84

5.71

203,722,676

51,826,761

1,369,399

101,972,844

65,776,993

1,152,714,442

100.00

Shareholders of ICICI Bank with more than one per cent holding at March 31, 2012

Name of the Shareholder

No. of shares % to total no.
of shares

Deutsche Bank Trust Company Americas (Depository for ADS holders)

309,514,994

26.85

Life Insurance Corporation of India

Europacific Growth Fund

Allamanda Investments Pte. Limited

Government of Singapore

Aberdeen Global Indian Equity Fund Mauritius Limited

Carmignac Gestion A/c Carmignac Patrimoine

Bajaj Allianz Life Insurance Company Limited

SBI Life Insurance Company Limited

New Perspective Fund Inc.

Bajaj Holdings and Investment Limited

Total

Distribution of shareholding of ICICI Bank at March 31, 2012

106,115,461

27,210,410

23,900,576

19,132,532

18,000,000

17,792,910

15,597,709

14,752,004

13,879,000

12,176,817

9.21

2.36

2.07

1.66

1.56

1.54

1.35

1.28

1.20

1.06

578,072,413

50.14

Range - Shares

Upto 1,000

1,001 to 5,000

5,001 – 10,000

10,001 – 50,000

50,001 & above

Total

No. of Folios

% No. of Shares

702,452

99.06

49,477,709

4,577

0.65

9,238,240

541

705

808

0.08

3,868,421

0.10

16,532,461

0.11 1,073,597,611

709,083

100.00 1,152,714,442

4.29

0.80

0.34

1.43

93.14

100.00

Disclosure with respect to shares lying in suspense account

Particulars

Shareholders

Aggregate number of shareholders and the outstanding shares in
the suspense account lying at the beginning of the year

Number of shareholders who approached ICICI Bank for transfer of shares
from suspense account during the year

Number of shareholders to whom shares were transferred from
suspense account during the year

Aggregate number of shareholders and the outstanding shares in
the suspense account lying at the end of the year

638

34,341

4,004

3,140

594

31,201

The voting rights on the shares lying in suspense account are frozen till the rightful owner of such
shares claims the shares.

Outstanding GDRs/ADSs/Warrants or any Convertible Debentures, conversion date and likely
impact on equity.

ICICI Bank has 154.76 million ADS (equivalent to 309.51 million equity shares) outstanding, which
constituted 26.85% of ICICI Bank’s total equity capital at March 31, 2012. Currently, there are no
convertible debentures outstanding.

Plant Locations – Not applicable

Address for Correspondence
Sandeep Batra
Group Compliance Officer & Company Secretary
or
Ranganath Athreya
General Manager & Joint Company Secretary
& Head Compliance – Private Banking, Capital Markets and Non-Banking Subsidiaries
ICICI Bank Limited
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
Tel No. :
Fax No. :
E-mail :

+91-22-2653 1414
+91-22-2653 1230
companysecretary@icicibank.com

The Bank has complied with the mandatory and majority of non-mandatory requirements mentioned in
the listing agreement, with respect to corporate governance.

ANALYSIS OF CUSTOMER COMPLAINTS
a) Customer complaints in fiscal 2012

No. of complaints pending at the beginning of the year
No. of complaints received during the year
No. of complaints redressed during the year
No. of complaints pending at the end of the year

3,024
155,115
154,302
3,837

Annual Report 2011-2012 31

Directors’ Report

b) Awards passed by the Banking Ombudsman in fiscal 2012

Number of unimplemented awards at the beginning of the year
Number of awards passed by the Banking Ombudsman during the year
Number of awards implemented during the year
Number of unimplemented awards at the end of the year

0
0
0
0

COMPLIANCE CERTIFICATE OF THE AUDITORS
ICICI Bank has annexed to this report, a certificate obtained from the statutory auditors, S. R. Batliboi &
Co., Chartered Accountants, regarding compliance of conditions of Corporate Governance as stipulated
in Clause 49 of the listing agreement.

EMPLOYEE STOCK OPTION SCHEME
In fiscal 2000, ICICI Bank instituted an Employee Stock Option Scheme (ESOS) to enable the employees
and Directors of ICICI Bank and its subsidiaries to participate in future growth and financial success of
the Bank. The ESOS aims at achieving the twin objectives of (i) aligning employee interest to that of
the shareholders; and (ii) retention of talent. Through employee stock option grants, the Bank seeks to
foster a culture of long-term sustainable value creation. As per the ESOS, as amended from time to time,
the maximum number of options granted to any employee/Director in a year is limited to 0.05% of ICICI
Bank’s issued equity shares at the time of the grant, and the aggregate of all such options is limited to
5% of ICICI Bank’s issued equity shares on the date of the grant (equivalent to 57.64 million shares at
April 27, 2012).

The Bank has up to April 27, 2012 granted 57.09 million stock options from time to time aggregating to
4.95% of the issued equity capital of the Bank at April 27, 2012. In view of the same and the benefits
of stock option grants as a compensation tool outlined above, the Board Governance, Remuneration &
Nomination Committee (the Committee) at its Meeting held on April 27, 2012 recommended that the
maximum number of equity shares of the Bank that can be created, offered, issued and allotted pursuant
to the options granted under ESOS should not exceed ten percent of the aggregate of the number of
issued equity shares of the Bank, from time to time, on the date(s) of the grant of option(s) under ESOS.
The Board of Directors at its Meeting held on April 27, 2012 accepted the recommendation of the
Committee and decided to seek the approval of the Members for the same. The enhancement of the
stock option pool upto ten percent of aggregate of the number of issued equity shares of the Bank is
in line with other large Indian private sector banks.

Options granted for fiscal 2003 and earlier years vest in a graded manner over a three-year period, with
20%, 30% and 50% of the grants vesting in each year, commencing not earlier than 12 months from
the date of the grant. Options granted from fiscal 2004 to 2008 vest in a graded manner over a four-year
period, with 20%, 20%, 30% and 30% of the grants vesting in each year commencing from the end of
12 months from the date of grant.

Options granted in April 2009 vest in a graded manner over a five year period with 20%, 20%, 30%
and 30% of grant vesting in each year, commencing from the end of 24 months from the date of the
grant. Out of the options the grant of which was approved by the Board at its Meeting held on October
29, 2010 (for which RBI approval for grant to wholetime Directors was received in January 2011), 50%
of the options granted vest on April 30, 2014 and the balance 50% on April 30, 2015. The other stock
options granted during the period April 2010 to April 2011 vest in a graded manner over a four year
period with 20%, 20%, 30% and 30% of the grant vesting in each year commencing from the end of
12 months from the date of grant.

Options granted in September 2011 vest in a graded manner over a five year period with 15%, 20%, 20%
and 45% of the grant vesting in each year, commencing from end of 24 months from the date of grant.

The Board at its Meeting held on April 27, 2012 approved a grant of approximately 4.45 million options
for fiscal 2012 to eligible employees and wholetime Directors (options granted to wholetime Directors
being subject to RBI approval). Each option confers on the employee a right to apply for one equity
share of face value of ` 10 of ICICI Bank at ` 841.45 which was closing price on the stock exchange

which recorded the highest trading volume in ICICI Bank shares on April 26, 2012. These options would
vest over a four year period, with 20%, 20%, 30% and 30% respectively of the grant vesting in each
year commencing from the end of 12 months from the date of grant.

Options can be exercised within 10 years from the date of grant or five years from the date of vesting,
whichever is later. The price of the options granted prior to June 30, 2003 is the closing market price
on the stock exchange, which recorded the highest trading volume on the date of grant. The price for
options granted on or after June 30, 2003 till July 21, 2004 is equal to the average of the high and low
market price of the equity shares in the two week period preceding the date of grant of the options, on
the stock exchange which recorded the highest trading volume during the two week period. The price
for options granted on or after July 22, 2004 (other than the grants approved by the Board at its Meeting
held on October 29, 2010 where the grant price was the average closing price of the ICICI Bank stock
on the stock exchange during the six months up to October 28, 2010) is equal to the closing price on
the stock exchange which recorded the highest trading volume preceding the date of grant of options.
The above disclosure is in line with the SEBI guidelines, as amended from time to time.

Particulars of options granted by ICICI Bank up to April 27, 2012 are given below:

Options granted till April 27, 20121 (excluding options forfeited/lapsed)
Options forfeited/lapsed
Options exercised
Total number of options in force
Options vested
Number of shares allotted pursuant to exercise of options
Extinguishment or modification of options
Amount realised by exercise of options ( ` )
1.
No employee was granted options during any one year equal to or exceeding 0.05% of the issued
equity shares of ICICI Bank at the time of the grant.

57,094,191
9,579,664
29,587,346
27,506,845
44,627,833
29,587,346
Nil
7,185,295,195

Includes Options granted to wholetime Directors pending RBI approval

The diluted earnings per share (EPS) pursuant to issue of shares on exercise of options calculated in
accordance with AS-20 was ` 55.95 in fiscal 2012 against basic EPS of ` 56.11. The Bank recognised a
compensation cost of ` 21.0 million in fiscal 2012 based on the intrinsic value of options. However, if
ICICI Bank had used the fair value of options based on binomial tree model, compensation cost in the
year ended March 31, 2012 would have been higher by ` 1,816.1 million and proforma profit after tax
would have been ` 62.83 billion. On a proforma basis, ICICI Bank’s basic and diluted earnings per share
would have been ` 54.52 and ` 54.37 respectively.

The key assumptions used to estimate the fair value of options granted during the year ended March
31, 2012 are given below:

Risk-free interest rate

Expected life

Expected volatility

7.99% to 9.07%

6.35 to 6.98 years

47.53% to 49.20%

Expected dividend yield
1.26% to 1.60%
The weighted average fair value of options granted during the year ended March 31, 2012 is ` 592.52
per option (March 31, 2011: ` 535.87).

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
AND OUTGO, UNDER SECTION 217(1)(e) OF THE COMPANIES ACT, 1956.
The provisions of Section 217(1)(e) of the Companies Act, 1956 relating to conservation of energy and
technology absorption do not apply to the Bank. The Bank has, however, used information technology
extensively in its operations.

Annual Report 2011-2012 33

Directors’ Report

IMPLEMENTATION OF CIRCULAR ISSUED BY MINISTRY OF CORPORATE AFFAIRS ON “GREEN
INITIATIVES IN CORPORATE GOVERNANCE”

The Bank has implemented the ‘Green Initiative’ as per Circular No. 17/2011 dated April 21, 2011 and
Circular No. 18/2011 dated April 29, 2011 issued by the Ministry of Corporate Affairs (MCA) to enable
electronic delivery of notices/documents and annual reports to shareholders and effected electronic
delivery of Notice of Annual General Meeting (AGM) and Annual Report for the year ended March 31,
2011 to those shareholders whose email addresses were registered with the respective Depository
Participants (DPs) and downloaded from the depositories viz. National Securities Depository Limited
(NSDL)/Central Depository Services (India) Limited (CDSL). Securities and Exchange Board of India
(SEBI) have also in line with the MCA circulars and as provided in Clause 32 of the Listing Agreement
executed with the stock exchanges, permitted listed entities to supply soft copies of full annual reports
to all those shareholders who have registered their email addresses for the purpose. Your Directors are
thankful to the shareholders for actively participating in the green initiative and seek your continued
support for implementation of the green initiative.

DIRECTORS’ RESPONSIBILITY STATEMENT

The Directors confirm:
1. that in the preparation of the annual accounts, the applicable accounting standards have been

followed, along with proper explanation relating to material departures;

2. that they have selected such accounting policies and applied them consistently and made
judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the
state of affairs of the Bank at the end of the financial year and of the profit or loss of the Bank for
that period;

3. that they have taken proper and sufficient care for the maintenance of adequate accounting records,
in accordance with the provisions of the Banking Regulation Act, 1949 and the Companies Act,
1956 for safeguarding the assets of the Bank and for preventing and detecting fraud and other
irregularities; and

4. that they have prepared the annual accounts on a going concern basis.

ACKNOWLEDGEMENTS

ICICI Bank is grateful to the Government of India, RBI, SEBI, IRDA and overseas regulators for their
continued co-operation, support and guidance. ICICI Bank wishes to thank its investors, the domestic
and international banking community, rating agencies and stock exchanges for their support.

ICICI Bank would like to take this opportunity to express sincere thanks to its valued clients and
customers for their continued patronage. The Directors express their deep sense of appreciation
of all the employees, whose outstanding professionalism, commitment and initiative has made the
organisation’s growth and success possible and continues to drive its progress. Finally, the Directors
wish to express their gratitude to the Members for their trust and support.

For and on behalf of the Board

May 14, 2012

K. V. Kamath
Chairman

Compliance with the Group Code of Business Conduct and Ethics

I confirm that all Directors and members of the senior management have affirmed compliance with
Group Code of Business Conduct and Ethics for the year ended March 31, 2012.

Chanda Kochhar
Managing Director & CEO

May 14, 2012

Auditor’s Certificate
on Corporate Governance

To the Members of ICICI Bank Limited

We have examined the compliance of conditions of corporate governance by ICICI Bank Limited (“the
Bank”) for the year ended on 31 March 2012, as stipulated in Clause 49 of the Listing Agreement of the
said Bank with stock exchanges.

The compliance of conditions of corporate governance is the responsibility of the management. Our
examination was limited to procedures and implementation thereof, adopted by the Bank for ensuring
the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression
of opinion on the financial statements of the Bank.

In our opinion, and to the best of our information and according to the explanations given to us, we
certify that the Bank has complied with the conditions of Corporate Governance as stipulated in the
above mentioned Listing Agreement.

We further state that such compliance is neither an assurance as to the future viability of the Bank nor
the efficiency or effectiveness with which the management has conducted the affairs of the Bank.

Mumbai
May 7, 2012

For S R Batliboi & Co
Chartered Accountants
Firm’s Registration No.: 301003E

Shrawan Jalan
Partner
Membership No: 102102

Annual Report 2011-2012 35

Business Overview

ECONOMIC OUTLOOK
Our strategy is based on the long-term growth prospects of the Indian economy. India has strong
economic fundamentals in the form of a favourable demographic profile and large investment potential.
This will continue to create opportunities across various customer and product segments. In fiscal 2012,
the economy faced several challenges including high inflation and interest rates and volatile capital
flows and currency markets, due to a combination of global and domestic factors. We believe that while
there may be short-term challenges, the strong underlying fundamentals of the Indian economy would
sustain healthy rates of growth over the medium to long term.

For a discussion of recent economic and regulatory developments, please refer to “Management’s
Discussion & Analysis”.

BUSINESS REVIEW
During fiscal 2012, the Bank continued its focus on the 5Cs strategy – Credit growth, CASA mobilisation,
Cost optimisation, Credit quality improvement and Customer centricity. We believe that we have made
substantial progress on all the parameters of this strategy. We have significantly improved our funding
profile, asset quality and profitability and are well-placed to leverage on the growth opportunities in
the economy.

Retail Banking
Fiscal 2012 was characterised by high interest rates and tight liquidity. This led to pressure on demand
deposits in the system. Further, these factors combined with high asset prices resulted in some
moderation in retail loan growth. The year also witnessed de-regulation of interest rates on domestic
savings deposits and non-resident Indian (NRI) deposits.

Customer convenience and high quality service backed by a strong distribution network and innovative
use of technology continued to be the bedrock of our growth strategy. During the year, we expanded
our distribution network by adding 223 branches and 2,902 ATMs, taking the total number of branches
and ATMs to 2,752 and 9,006 respectively.

The Bank has the largest branch network among private sector banks in the country. We continued our
initiatives to offer customised products and services for various customer segments, including through
differentiated sales and service propositions. During the year, we set up over 100 specialised business
banking branches to cater to the growing self-employed and small business segments. Customers
can undertake their trade transactions and obtain business loans at these branches. Healthy growth
in current & savings accounts deposits continued to be our key priority for fiscal 2012. We continued
our focus on residential mortgages, auto loans & commercial business, with credit quality in these
portfolios continuing to be robust. In credit cards, we launched the “Gemstone Collection” of cards
during the year to suit requirements of various customer segments. We also expanded our debit and
prepaid cards portfolio. In addition, we leveraged our distribution infrastructure to increase the cross-
sell of third party products including life insurance and mutual funds.

We continued to take several initiatives in the area of technology to enhance customer convenience
and the overall customer experience. We were among the first banks to introduce account number
portability and also the only bank to enable customers to avail of portability through internet banking
and phone banking. Customers can thus change their servicing branch without changing their
account number and without having to visit the branch. This facility will ensure complete mobility

and remove problems associated with changing account numbers in various ECS, auto debit and
bill payment instructions.

Our internet banking customers can now avail of unique facilities like end-to-end customer service
through Click2Call with instant call back and online chat. Customers can view all ICICI Group
relationships and manage finances through personal expense management tools like ICICI Bank Money
Manager. We also launched a one-of-its kind “Your Bank Account” application on Facebook. Our mobile
banking service offers a range of banking options including iMobile, SMS banking and IVR payments.
Our ATMs now serve as “Almost a Bank Branch”. During the year, we added a number of features to
our ATMs, such as instant fund transfer, fixed deposits, bill payment, mobile number updation and
insurance premium payments for the convenience of our customers. ICICI Bank was awarded the “NFS
Operational Excellence Award-2011-12” for overall performance of the ATM channel by the National
Payments Corporation of India (NPCI) as the top bank in the private and foreign bank category. During
the year, we also enhanced our capabilities in data warehousing and analytics for timely and accurate
insights on the large customer base. This has helped the Bank make better decisions in the areas of
customer relationship management, cross sell, risk management and fraud prevention.

Through these and other initiatives, we achieved robust growth in our retail business. Our auto and
commercial business loan portfolios grew by 14.4% and 20.0% respectively in fiscal 2012. Mortgage
disbursements (excluding developer financing) grew by 26.8% in fiscal 2012, though this was partly
offset by repayments & prepayments out of the existing portfolio resulting in a portfolio growth of 7.5%.
We also continued to see strong momentum in retail deposit customer acquisition and robust growth
in the retail deposit base across both savings and term deposits. Savings account deposits grew by
13.7% in fiscal 2012.

At ICICI Bank, we believe that retail credit in India has robust long-term growth potential, driven by
sound fundamentals of rising income levels and favourable demographic profile. We will continue to
enhance growth momentum in retail assets while sustaining and accelerating retail deposit mobilisation,
through a focus on customer convenience and service quality.

Small & Medium Enterprises
Small and medium enterprises are the growth drivers of our economy and reflect India’s inherent
entrepreneurial strength. At ICICI Bank, we offer complete banking solutions to SMEs across industry
segments with a suite of products customised to their business needs. We adopt a cluster based
financing approach for small and medium enterprises with a homogeneous profile in industries such as
infrastructure, engineering, information technology, education, life sciences and agri-based industries,
to partner their growth ambitions. We also offer supply chain financing solutions to the channel partners
of large corporates.

Despite the moderation in economic growth in fiscal 2012, some sectors in the SME space continued
to remain on a growth trajectory. We have focused on judicious portfolio growth and deeper customer
penetration. We continued to enhance our delivery capabilities to SME customers through specialised
branches in synergy with the Bank’s Commercial Banking Group. We also introduced technology
solutions like Trade Online to enable seamless service delivery to SME customers.

ICICI Bank sees the SME sector as a vital constituent of the Indian economy and will continue to partner
the Indian SME entrepreneur while building a healthy portfolio.

Annual Report 2011-2012 37

Business Overview

Wholesale Banking
ICICI Bank’s wholesale banking strategy is based on providing comprehensive and customised
financial solutions to our corporate customers. The Wholesale Banking Group manages relationships
with major corporate houses, mid-market companies and government entities with a comprehensive
suite of banking products, which includes rupee and foreign currency debt, currency and interest
rate risk management products, structured financing, loan syndication and commercial banking
products and services. During fiscal 2012, there was a slowdown in the new investment plans of
the corporate sector. Certain sectors and corporates also faced stress in their operations on account
of the moderation in economic growth in India, global developments and other challenges, which
resulted in an increase in restructured assets. The Bank focused on proactively addressing asset
quality issues, and growing its granular transaction banking revenues given the limited opportunities
in project and structured financing.

Our Corporate Banking Group comprises a core relationship team that is product agnostic and works
with specific teams spread across project finance, structured finance, loan syndication, commercial
banking and markets with a focus on designing optimal financial solutions for clients. These teams
work along with the relationship team to fulfill product specific needs of clients.

The Structured Finance Group works in tandem with relationship teams across the Wholesale Banking
Group and International Banking Group and provides financing solutions to the Bank’s corporate
clients through cost efficient, tailor-made structures. The group’s strength lies in its experience,
knowledge and expertise in providing innovative end-to-end solutions with timely execution. This
strong capability, coupled with the Bank’s global presence, industry expertise, and large underwriting
capability, has enabled ICICI Bank to become one of the leading arrangers & underwriters of structured
finance transactions.

The Domestic Syndications Group is one of the major players in the domestic syndication segment for
corporate and project finance transactions. Leveraging on our strong relationships with financial market
participants, we are able to provide customised financial structures and solutions to our clients based
on their requirements.

The Mid Market Group focuses on identifying, nurturing and helping mid-sized corporate customers in
their growth path to eventually become large sized corporates. This segment constitutes a substantial
portion of the Indian economy and is expected to be a key beneficiary of its growth. The target segment
comprises corporates that have grown and matured beyond the SME segment and therefore need
more complex banking services.

Diversifying the revenue streams from corporate clients and enhancing the granularity and stability
of revenues is a key focus area for the Wholesale Banking Group. To this end, the Group works
closely with the Commercial Banking Group to meet the transaction banking and trade related needs
of corporate customers. The Commercial Banking Group works towards enhancing client servicing
capabilities at the operational level. We have identified certain branches as “Mega Branches” with
specialised capabilities in this regard. These branches are spread across all major commercial centres
across the country. They are supported by a central operations team. The relationship team also
works with the Markets Group to assist customers in addressing market risk in their businesses by
offering various risk management products.

We will continue to increase the granularity and stability of our revenue streams by executing our
commercial banking strategy, while maintaining our project financing franchise, further expanding and
deepening our client relationships and focusing on credit quality. We seek to be a comprehensive
service provider to our corporate clients, spanning their needs across project financing, structured
financing, working capital, trade and payments. We believe that the growth of the corporate sector will
present significant opportunities for us in all these areas.

Project finance
As India enters the Twelfth Five Year Plan period, significant opportunities are expected in project
financing across infrastructure and manufacturing sectors. The road sector will witness considerable
activity with award of more projects supported by measures like e-tendering implemented by National
Highways Authority of India (NHAI). With various major and minor ports preparing to award projects for
new cargo berths and container terminal development, the port sector is also expected to attract higher
investments. The power sector has witnessed a moderation in investment plans, primarily on account
of concerns over fuel availability and the financial position of state-owned power distribution utilities
that are the primary purchasers of power. There continues to be a significant demand-supply gap in
the power sector and hence investments made in this sector are expected to be viable. Going forward,
while generation projects are expected to be fewer in number given the significant capacity creation
that is already underway, the regional transmission corridors for strengthening the national grid are
expected to see more investments. The Government’s proposal to set up a coal sector regulator and
introduce competitive bidding for allocation of coal blocks will spur private sector investments in the
development of coal blocks. In the oil and gas sector, activity is likely to be led by demand for gas and
associated investment in LNG terminals. With the increasing demand supply gap, the fertiliser sector
is expected to see new capacity additions. In addition, emerging sectors such as water and waste
management are likely to witness fresh investments.

We will continue to focus on meeting the long-term financing requirements of Indian corporates to
enable them to contribute in the development of infrastructure and other projects. We believe that
our long experience in project finance, our comprehensive domain expertise and sound due diligence
coupled with our ability to offer innovative, structured and customised solutions will help us capitalise
on opportunities and cater to financing requirements in the years to come.

International Banking
Our international banking strategy is focused on providing solutions for the international requirements
of our Indian corporate clients, facilitating the growing trade and capital flows between India and the
rest of the world and establishing ICICI Bank as the preferred bank for non-resident Indians in key global
markets. Further, during 2012, India continued to emerge as a top target market for most major global
corporations. ICICI Bank’s International Banking Group supports such plans by establishing relationships
with major global corporations. We also seek to build stable funding sources and strong syndication
capabilities to support our corporate and investment banking business, and to expand private banking
operations for India-centric asset classes.

Our international footprint today consists of subsidiaries in the United Kingdom, Russia and Canada,
branches in the United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Dubai International Finance
Centre and Qatar Financial Centre and representative offices in the United Arab Emirates, China, South
Africa, Bangladesh, Thailand, Malaysia and Indonesia. The Bank’s wholly owned subsidiary ICICI Bank
UK PLC has eleven branches in the United Kingdom and a branch each in Belgium and Germany.
ICICI Bank Canada has nine branches. ICICI Bank Eurasia, our Russian subsidiary, is headquartered in
Moscow with a branch in St. Petersburg. We opened our second retail branch in Singapore in fiscal
2012.

In fiscal 2012, global economic activity picked up at differential rates with emerging markets
experiencing strong growth and developed markets continuing to face challenges. However, as the
overall global economic environment improved the pace of recovery in international trade and capital
flows strengthened significantly. In this changing environment, we continued to maintain adequate
capital and focused on risk containment in our international operations. We also focused on improving
the funding profile in our international operations. We continued to focus on expanding our trade finance
business and our relationships with global corporates doing business in India.

We gained considerable market share in remittances during fiscal 2012 and continued to develop
products and service offerings to meet the requirements of the NRI community. The emphasis was
on delivering a high quality customer service experience across the widely dispersed NRI community.

Annual Report 2011-2012 39

Business Overview

Money2India – the flagship brand of the remittance business completed a decade and reached the
landmark of serving a million people. Through our branch in Frankfurt, we launched a dedicated online
Money Transfer to India service for Indians living in the Eurozone countries, thereby expanding ICICI
Bank’s international reach significantly.

Rural & Inclusive Banking
In accordance with the ICICI Group’s vision of combining a sustainable business model with a social
and human development agenda, ICICI Bank has undertaken several initiatives to meet the financial
requirements of the rural and the semi-urban population. These include offering credit through branches
and financial inclusion through business correspondents (BC). During the year, we continued to focus
on improving our product and service offerings to meet the requirements of all participants in the rural
and semi urban economy including farmers, small processors and agri-corporates. We also sought to
identify and capitalise on business opportunities across agriculture & allied and other sectors in these
geographies.

In March 2010, our Board approved a three-year financial inclusion plan that envisaged the opening of
no-frill savings accounts and expanding our rural reach over the next three years along with the provision
of credit to select individuals in the target segment through various product lines such as kisan credit
card, farm equipment loan and loan against gold ornaments. In fiscal 2012, we focused on building
capacity and deploying adequate resources to achieve these targets. We focused on opening accounts
for routing benefit payments under various government schemes and have received mandates for
opening accounts of individuals under these schemes in certain states. At March 31, 2012 we had 17
business correspondents with a network of 4,653 customer service points, to service these customers.
We provide additional services to these customers such as remittances and opening of fixed/recurring
deposit accounts. We had opened about 9.8 million financial inclusion accounts by March 31, 2012.

We have successfully launched the process for routing government benefit payments using the Aadhar
platform of Unique Identification Authority of India (UIDAI) on an end-to-end basis. This includes
crediting beneficiary account using Aadhaar Payment Bridge System (APBS) and disbursements in the
field using AEPS. We have also been appointed as registrar by UIDAI.

We have also built lending capability in over 1,000 of our branches for products targeted towards
customers in the rural and semi urban areas across different segments in the entire agri-value chain. We
have designed a bouquet of products customised to meet the specific requirements of the customers in
these areas. These products are designed to meet the working capital and investment requirements. We
also increased our product offerings by way of strategic tie-ups with tractor manufacturers, associating
with certain corporates/cooperatives in the sugar/dairy sector and financing self help groups to reach
out to the weaker sections of the community. New product initiatives were also undertaken during the
year to enhance credit flow towards the micro and small enterprises sector.

Going forward, we will focus on leveraging our branch network and the network of our BC partners
as dedicated channels of customer service. We will also continue with our endeavour of ensuring
enhanced financial inclusion by offering quality banking facilities to the unbanked, use of technology for
addressing customer needs and growing our relationships with these customers over time. We will seek
to play a significant role in the channeling of payments under government schemes to the beneficiaries
through their bank accounts with us. We will also leverage the emerging initiatives and infrastructure,
such as the Aadhaar initiative which support the financial inclusion initiative in the country.

Treasury
Our treasury operations are structured into three verticals: proprietary trading group, customer related
markets business and the asset-liability management group.

Fiscal 2012 was a volatile year for financial markets. The government bond markets saw an increase
in 10-year yield from 7.98% to 8.57% following tight monetary policy (with repo rate increased by 175
basis points) in fiscal 2012. This was accompanied by tight liquidity conditions. The equity markets

witnessed significant decline in the first three quarters of the year due global and domestic economic
developments. However, subsequent to the easing of Eurozone concerns and increasing portfolio
investment inflows, equity markets recovered in the last quarter of fiscal 2012. Foreign exchange
markets were also volatile and the rupee recorded a sharp fall of 14.6% against the dollar during 2011.
Corporate bond spreads also remained volatile throughout the year amid bearish market sentiment.

The proprietary trading group witnessed subdued activity in view of the market scenario. However,
the Bank continued to focus on the corporate bonds segment and ranked first in league table rankings
for debt private placement according to the Prime database. Over the last year, we strengthened our
relationship with key issuers and focused on increasing our distribution coverage. The Bank also won
the IFR Asia 2011 Award in the “India Bond House of the Year” category.

In its customer related business, the Bank provides foreign exchange and derivative solutions to clients
and has continued to be a major player in this segment. These products and services are aimed at
managing customers’ foreign exchange and risk hedging needs through forwards, swaps, options and
bullion services. The Bank hedges market risks related to these products with banking counterparties.

The balance sheet management function continued to actively manage the Bank’s liquidity and the
government securities portfolio held for compliance with Statutory Liquidity Ratio (SLR) norms to
optimise the yield on this portfolio, while maintaining an appropriate portfolio duration given the volatile
interest rate environment.

RISK MANAGEMENT
Risk is an integral part of the banking business and we aim at delivering superior shareholder value by
achieving an appropriate trade-off between risk and returns. Key risks include credit, market, liquidity,
operational, legal, compliance and reputation risks. Our risk management strategy is based on a clear
understanding of various risks, disciplined risk assessment & measurement procedures and continuous
monitoring.

The key principles underlying our risk management framework are as follows:

The Board of Directors has oversight on all the risks assumed by the Bank. Specific Committees of the
Board have been constituted to facilitate focused oversight of various risks. Policies approved from
time to time by the Board of Directors/Committees of the Board form the governing framework for each
type of risk. The business activities are undertaken within this policy framework. Independent groups
and sub-groups have been constituted across the Bank to facilitate independent evaluation, monitoring
and reporting of various risks. These groups function independently of the business groups.

Our Risk Committee approves, every year, a detailed calendar of reviews. The calendar of reviews
includes reviews of risk management policies in relation to various risks, risk profile of the Bank, its
overseas banking subsidiaries and key non-banking subsidiaries, assessment of capital adequacy based
on the risk profile of the balance sheet, status with respect to implementation of advanced approaches
under the Basel framework and review of regulatory compliance issues. Our Credit Committee also
approves every year a detailed calendar of reviews covering the Bank’s exposure to particular industries
and outlook for those industries, analysis of non-performing loans, overdues, incremental sanctions
and specific review of each portfolio. A summary of the reviews carried out by the Credit Committee
and Risk Committee is reported to the Board of Directors. Our Asset Liability Management Committee
is responsible for managing the balance sheet within the risk parameters laid down by the Board/Risk
Committee and reviewing our asset-liability position.

We have dedicated groups, namely the Risk Management Group, Compliance Group, Corporate Legal
Group, Internal Audit Group and Financial Crime Prevention & Reputation Risk Management Group, with
a mandate to identify, assess and monitor the Bank’s principal risks in accordance with well-defined
policies and procedures. These groups are independent of all business operations and coordinate with
representatives of the business units to implement ICICI Bank’s risk management methodologies. The
Internal Audit Group and Compliance Group are responsible to the Audit Committee of the Board.

Annual Report 2011-2012 41

Business Overview

Credit Risk: Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender.
All credit risk related aspects are governed by a credit and recovery policy which outlines the type of
products that can be offered, customer categories, targeted customer profile and the credit approval
process and limits. The credit and recovery policy is approved by our Board of Directors. In order to
assess the credit risk associated with any corporate financing proposal, we assess a variety of risks
relating to the borrower and the relevant industry. We have a structured and standardised credit approval
process which includes a well established procedure of comprehensive credit appraisal and credit
rating. We have developed internal credit rating methodologies for rating obligors. The rating factors
in quantitative and qualitative issues and credit enhancement features specific to the transaction. The
rating serves as a key input in the approval as well as post-approval credit processes. A risk based asset
review framework has also been put in place wherein the frequency of asset review would be higher
for cases with higher exposure and/or lower credit rating. Industry knowledge is constantly updated
through field visits and interactions with clients, regulatory bodies and industry experts.

The Bank has a strong framework for the appraisal and execution of project finance transactions that
involves a detailed evaluation of technical, commercial, financial, marketing and management factors
and the sponsor’s financial strength and experience. The Bank identifies the project risks, mitigating
factors and residual risks associated with the project. As a part of the due diligence process, the
Bank appoints consultants, including technical advisors, business analysts, legal counsel and insurance
consultants, wherever considered necessary, to advise the lenders. Risk mitigating factors in these
financings include creation of debt service reserves and channelling project revenues through a
trust and retention account. The Bank’s project finance loans are generally fully secured and have
full recourse to the borrower. In some cases, the Bank also takes additional credit comforts such as
corporate or personal guarantees from one or more sponsors of the project or a pledge of the sponsors’
equity holding in the project company. The Bank’s practice is to normally disburse funds after the entire
project funding is committed and all necessary contractual arrangements have been entered into.

In case of retail loans, sourcing and approval are segregated to achieve independence. The Credit
Risk Management Group has oversight on the credit risk issues for retail assets including vetting of all
credit policies/operating notes proposed for approval by the Board of Directors or forums authorised
by the Board of Directors. The Credit Risk Management Group is also involved in portfolio monitoring
for all retail assets and suggesting/implementing policy changes. The Retail Credit and Policy Group is
an independent unit which focuses on policy formulation and portfolio tracking and monitoring. This
group also includes the Credit Administration Unit that services various retail business units for credit
underwriting. In addition, we also have a Business Intelligence Unit to provide support for analytics,
score card development and database management.

Our credit officers evaluate retail credit proposals on the basis of the product policy approved by
the Committee of Executive Directors and the risk assessment criteria defined by the Credit Risk
Management Group. These criteria vary across product segments but typically include factors like
the borrower’s income, the loan-to-value ratio and demographic parameters. The technical valuations
in case of residential mortgages are carried out by empanelled valuers or technical teams. External
agencies such as field investigation agencies and credit processing agencies are used to facilitate
a comprehensive due diligence process including visits to offices and homes in the case of loans to
individual borrowers. Before disbursements are made, the credit officer checks a centralised delinquent
database and reviews the borrower’s profile. In making our credit decisions, we also draw upon reports
from credit information bureaus. We also use the services of certain fraud control agencies operating
in India to check applications before disbursement.

In addition, the Credit and Treasury Middle Office Groups and the Operations Group monitor operational
adherence to regulations, policies and internal approvals. We have centralised operations to manage
operational risk in most back office processes of the Bank’s retail loan business. The Fraud Prevention
Group manages fraud related risks through forensic audits and recovery of fraud losses. The segregation
of responsibilities and oversight by groups external to the business groups ensure adequate checks
and balances.

Our credit approval authorisation framework is laid down by our Board of Directors. We have established
several levels of credit approval authorities for our corporate banking activities like the Credit Committee
of the Board of Directors, the Committee of Executive Directors, the Committee of Senior Management,
the Committee of Executives (Credit) and the Regional Committee (Credit). Retail Credit Forums, Small
Enterprise Group Forums and Corporate Agriculture Group Forums have been created for approval of
retail loans and credit facilities to small enterprises and agri based enterprises respectively. Individual
executives have been delegated with powers in case of policy based retail products to approve financial
assistance within the exposure limits set by our Board of Directors.

Market Risk: Market risk is the possibility of loss arising from changes in the value of a financial
instrument as a result of changes in market variables such as interest rates, exchange rates and other
asset prices. The prime source of market risk for the Bank is the interest rate risk we are exposed to
as a financial intermediary. In addition to interest rate risk, we are exposed to other elements of market
risk such as liquidity or funding risk, price risk on trading portfolios, exchange rate risk on foreign
currency positions and credit spread risk. These risks are controlled through limits such as duration of
equity, earnings at risk, value-at-risk, stop loss and liquidity gap limits. The limits are stipulated in our
Investment Policy, ALM Policy and Derivatives Policy which are reviewed and approved by our Board of
Directors.

The Asset Liability Management Committee, which comprises wholetime Directors and senior executives,
meets on a regular basis and reviews the trading positions, monitors interest rate and liquidity gap
positions, formulates views on interest rates, sets benchmark lending and base rates and determines
the asset liability management strategy in light of the current and expected business environment. The
Market Risk Management Group recommends changes in risk policies and controls and the processes
and methodologies for quantifying and assessing market risks. Risk limits including position limits and
stop loss limits for the trading book are monitored on a daily basis by the Treasury Middle Office Group
and reviewed periodically. Foreign exchange risk is monitored through the net overnight open foreign
exchange limit. Interest rate risk of the overall balance sheet is measured through the use of re-pricing
gap analysis and duration analysis. Interest rate gap sensitivity gap limits have been set up in addition
to limits on the duration of equity and earnings at risk. Risks on trading positions are monitored and
managed by setting VaR limits and stipulating daily and cumulative stop-loss limits.

The Bank uses various tools for measurement of liquidity risk including the statement of structural
liquidity, dynamic liquidity gap statements, liquidity ratios and stress testing. We maintain diverse
sources of liquidity to facilitate flexibility in meeting funding requirements. Incremental operations in the
domestic market are principally funded by accepting deposits from retail and corporate depositors. The
deposits are augmented by borrowings in the short-term inter-bank market and through the issuance
of bonds. Loan maturities and sale of investments also provide liquidity. Our international branches
are primarily funded by debt capital market issuances, syndicated loans, bilateral loans and bank lines,
while our international subsidiaries raise deposits in their local markets.

Operational Risk: Operational risk is the risk of loss resulting from inadequate or failed internal processes,
people or systems, or from external events. Operational risk includes legal risk but excludes strategic and
reputational risks. Operational risk is inherent in the Bank’s business activities in both domestic as well as
overseas operations and covers a wide spectrum of issues. Operational risk can result from a variety of
factors, including failure to obtain proper internal authorisations, improperly documented transactions,
failure of operational and information security procedures, computer systems, software or equipment,
fraud, inadequate training and employee errors. Operational risk in the Bank is managed through a
comprehensive system of internal controls, systems and procedures to monitor transactions, key back-
up procedures and undertaking regular contingency planning. The control framework is designed based
on categorisation of functions into front-office comprising business groups, middle office comprising
credit and treasury middle offices, back-office comprising operations, corporate and support functions.
The Bank’s operational risk management governance and framework is defined in the Operational Risk
Management (ORM) Policy approved by the Board of Directors. The Policy is applicable across the
Bank including overseas branches, ensuring a clear accountability and responsibility for management

Annual Report 2011-2012 43

Business Overview

and mitigation of operational risk, developing a common understanding of operational risk and helping
the business and operation groups to improve internal controls, thereby reducing the probability and
potential impact of losses from operational risks. The Bank has also constituted an Operational Risk
Management Committee (ORMC) to oversee the operational risk management in the Bank. The ORM
Policy specifies the composition, roles and responsibilities of the ORMC. While the Policy provides a
broad framework, detailed standard operating procedures for operational risk management processes
have been established. Operational risk management framework in the Bank comprises identification
and assessment of risks and controls, new products and process approval framework, measurement
through incidents and exposure reporting, monitoring through key risk indicators and mitigation through
process and control enhancement and insurance. The Bank has formed an independent Operational
Risk Management Group for design, implementation and enhancement of operational risk management
framework and to support business and operations groups in the operational risk management on an
on-going basis.

We seek to ensure that our capital position supports the risks in our business and our future growth
plans through a robust capital management framework. This includes a comprehensive internal capital
adequacy assessment process conducted annually, which determines the adequate level of capitalisation
necessary to meet regulatory norms and current and future business needs, including under stress
scenarios. We believe we are well-placed to comply with RBI’s guidelines on the implementation of the
Basel III framework in India. We are also working towards migration to the advanced approaches under
the Basel II framework over the medium term, subject to applicable RBI guidelines and approvals.

HUMAN RESOURCES
We continued with our efforts to further strengthen the delivery of our employee value proposition –
“Saath Aapka” - a promise of care, nurturing and opportunity to accomplish professional aspirations.

During the year, we launched two new internal training academies – The Rural & Inclusive Banking
Academy and The Privilege Banking Academy – to support and strengthen the execution of Bank’s
rural and retail banking strategies. The academies focused on equipping new employees with requisite
functional knowledge (covering product features, processes and regulations) and essential customer
service and selling skills before placing them in their respective roles. To facilitate the rural strategy,
we focused on hiring sales professionals familiar with the local language and market. Similarly, the
privilege banking strategy was supported through infusion of trained resources in key markets to
deepen relationship with our customers.

The Bank continued to invest in its industry-academia initiatives to build a talent pool with the required
knowledge and skills for the banking sector. This year, the capacity of our flagship Probationary Officer
programme was enhanced from 1,400 to 2,400 per year. The programme received more than 250,000
applications for 2,400 seats. The Bank also launched two programmes under the aegis of ICICI Business
Leadership Programme, one in partnership with NIIT University and the other with National Institute of
Securities Markets (NISM). These programmes aim to create a talent pool for specialised functions
such as wholesale banking, risk management, treasury and information technology.

The Bank continued to focus on improving service delivery to its customers by placing more experienced
and seasoned staff in leadership positions at the branches. “Skill through Drill”, an innovative video-
based program, was offered to our branch staff to equip them with requisite service skills to deliver the
better service to our customers. All employees in customer service and sales roles were assessed and
certified on threshold functional knowledge.

The Bank continued to provide internal platforms to the employees to engage with senior management,
share views and have an open dialogue on organisation policies and practices. This year, more than
400 such sessions were held with employees where the dialogue was facilitated by senior managers of
the Bank. In addition to engaging with employees and resolving their concerns, the Bank continued to
stand by employees in their hour of need. The industrial relations environment for the Bank remained
cordial and conducive for achieving organisation’s objectives.

INFORMATION TECHNOLOGY
ICICI Bank has been a technology leader in Indian banking for over a decade, taking pioneering steps
to enhance convenience for our customers. We have brought in high levels of functionalities to all our
channels such as internet banking, ATMs, mobile banking and phone banking and at the same time
continued to improve and strengthen internal technology infrastructure, processes and capabilities.
Our information technology strategy has remained focused around increasing customer convenience,
reducing customer complaints and reducing turnaround time.

Against this backdrop, we have, during the course of the year, enhanced offerings for all our retail
customers. These included a range of additional functionalities across our technology channels, including
ATMs, mobile banking and internet banking. For our corporate customers, we reduced the need for
them to visit branches by introducing the online trade platform. The platform will enable customers
to conduct their trade transactions over the internet, track the status of their service requests online
and help us provide better turnaround time. In the area of financial inclusion, we participated in the
online transaction authentication pilot conducted by UIDAI in Hazaribagh, Jharkhand. We successfully
demonstrated transactions like balance enquiries, cash withdrawal, cash deposit and funds transfer as
part of this exercise.

Internally, we also continued with our focus to improve our processes and capabilities. We installed
note-sorting machines in identified branches. These machines can detect fake currency notes and
hence generate clean cash at the branch level itself. We also upgraded our systems to handle high
NEFT transaction volumes.

We continue to invest in innovation and partnering with business teams on ways to leverage technology
to enhance customer convenience, accelerate financial inclusion and deliver a superior experience to
our customers.

KEY SUBSIDIARIES
ICICI Prudential Life Insurance Company (ICICI Life)
Fiscal 2012 was the first full year of operations after the regulatory changes in respect of unit linked
insurance products came into effect from September 2010. ICICI Life successfully maintained its
leadership amongst private players in new business premium on retail weighted basis with a market
share of 5.9%. ICICI Life’s total premium for fiscal 2012 was ` 140.22 billion and new business annualised
premium equivalent premium was ` 31.18 billion. ICICI Life’s unaudited new business profit in fiscal
2012 was ` 5.00 billion. The profit after tax for ICICI Life was ` 13.84 billion in fiscal 2012 compared to
` 8.08 billion in fiscal 2011. The total sum assured by ICICI Life increased by 20% from ` 1,737.64 billion
at March 31, 2011 to ` 2,082.99 billion at March 31, 2012.

ICICI Lombard General Insurance Company (ICICI General)
ICICI General maintained its leadership in the private sector with an overall market share of 9.4% in
fiscal 2012. ICICI General’s gross written premium grew by 22% from ` 44.08 billion in fiscal 2011 to
` 53.58 billion during fiscal 2012.

Insurance Regulatory and Development Authority, vide its order dated March 22, 2012, has specified
the ultimate loss ratios for general insurance companies in respect of the third party motor pool, a
multilateral reinsurance arrangement covering third party risk of commercial vehicles. The loss ratios
range from 159% to 213% between fiscal 2008 to fiscal 2011 and 145% for fiscal 2012 (after considering
price increase of 68.5% effective April 25, 2011). This had an impact on the entire general insurance
industry. The additional impact of the above on ICICI General was ` 6.85 billion. As a result of the
negative impact, ICICI General recorded a loss of ` 4.16 billion in fiscal 2012 compared to a loss of
` 0.80 billion in fiscal 2011.

Annual Report 2011-2012 45

Business Overview

ICICI Prudential Asset Management Company (ICICI AMC)
ICICI AMC is the third largest asset management company in India with average mutual fund assets
under management of ` 687.18 billion for the quarter ended March 31, 2012. ICICI Prudential AMC
achieved a profit after tax of ` 0.88 billion in fiscal 2012 compared to ` 0.72 billion in fiscal 2011.

ICICI Venture Funds Management Company (ICICI Venture)
In fiscal 2012, ICICI Venture continued to focus on investment and advisory opportunities in the Indian
market, including in infrastructure, real estate and special situations. ICICI Venture achieved a profit
after tax of ` 0.68 billion in fiscal 2012 compared to ` 0.74 billion in fiscal 2011.

ICICI Securities (I-Sec)
Market conditions in fiscal 2012 impacted business volumes in corporate finance and broking. I-Sec
continued to focus on strengthening its capabilities across segments and maintained its market
leadership in the corporate finance as well as the retail broking businesses. The company achieved a
profit of ` 0.77 billion in fiscal 2012 compared to ` 1.13 billion in fiscal 2011.

ICICI Securities Primary Dealership (I-Sec PD)
I-Sec PD’s corporate debt placement volumes rose by over 30% with total deals crossing ` 830.00
billion and it continued to maintain its position as the only non-bank entity in the top three in the PRIME
league tables. I-Sec PD was appointed as one of the discretionary fund managers for managing the
funds belonging to the Employees Provident Fund Organisation under the Ministry of Labour for a
period of three years. Despite a challenging market environment, I-Sec PD achieved a profit after tax of
` 0.86 billion in fiscal 2012 compared to ` 0.53 billion in fiscal 2011.

ICICI Bank UK plc (ICICI Bank UK)
ICICI Bank UK’s profit after tax for fiscal 2012 was US$ 25.4 million compared to US$ 36.6 million in
fiscal 2011. At March 31, 2012, ICICI Bank UK plc had total assets of US$ 4.1 billion compared to US$
6.4 billion at March 31, 2011. Its capital position was strong with a capital adequacy ratio of 32.4% at
March 31, 2012 compared to 23.1% at March 31, 2011.

ICICI Bank Canada
ICICI Bank Canada’s profit after tax for fiscal 2012 was CAD 34.4 million compared to CAD 32.4 million
in fiscal 2011. At March 31, 2012, ICICI Bank Canada had total assets of CAD 5.2 billion compared to
CAD 4.5 billion at March 31, 2011. ICICI Bank Canada had a capital adequacy ratio of 31.7% at March
31, 2012 compared to 26.3% at March 31, 2011.

KEY RISKS
We have included statements in this annual report which contain words or phrases such as “will”,
“would”, “aim”, “aimed”, “will likely result”, “is likely”, “are likely”, “believe”, “expect”, “expected to”,
“will continue”, “will achieve”, “anticipate”, “estimate”, “estimating”, “intend”, “plan”, “contemplate”,
“seek to”, “seeking to”, “trying to”, “target”, “propose to”, “future”, “objective”, “goal”, “project”,
“should”, “can”, “could”, “may”, “will pursue” and similar expressions or variations of such expressions,
that may constitute “forward-looking statements”. These forward-looking statements involve a number
of risks, uncertainties and other factors that could cause actual results, opportunities and growth
potential to differ materially from those suggested by the forward-looking statements. These risks and
uncertainties include, but are not limited to, the actual growth in demand for banking and other financial
products and services in the countries where we operate or where a material number of our customers
reside; our ability to successfully implement our strategy, including our retail deposit growth strategy;
our use of the internet and other technology; our rural expansion and ability to meet priority sector
lending requirements; our exploration of merger and acquisition opportunities; our ability to integrate
recent or future mergers or acquisitions into our operations and manage the risks associated with
such acquisitions to achieve our strategic and financial objectives; our ability to manage the increased
complexity of the risks we face following our international expansion; future levels of non-performing
and restructured loans; our growth and expansion in domestic and overseas markets; the adequacy of

our allowance for credit and investment losses; technological changes; investment income; our ability
to market new products; cash flow projections; the outcome of any legal, tax or regulatory proceedings
in India and in other jurisdictions that we are or become a party to; the future impact of new accounting
standards; our ability to implement our dividend policy; the impact of changes in banking regulations
and other regulatory changes in India and other jurisdictions on us; the bond and loan market conditions
and availability of liquidity amongst the investor community in these markets; the nature of credit
spreads and interest spreads from time to time, including the possibility of increasing credit spreads or
interest rates; our ability to roll over short-term funding sources and our exposure to credit; and market
and liquidity risks. In addition, other factors that could cause actual results to differ materially from
those estimated by the forward-looking statements include, but are not limited to, general economic
and political conditions in India, southeast Asia and the other countries which have an impact on our
business activities or investments, political or financial instability in India or any other country, the
monetary and interest rate policies of India, inflation, deflation, unanticipated turbulence in interest
rates, changes in the value of the rupee, foreign exchange rates, equity prices or other rates or prices,
the performance of the financial markets, changes in domestic and foreign laws, regulations and taxes,
changes in competition and the pricing environment in India and changes in asset valuations.

CREDIT RATING
ICICI Bank’s credit ratings by various credit rating agencies at March 31, 2012 are given below:

Agency
Moody’s Investor Service (Moody’s)

Standard & Poor’s (S&P)
Credit Analysis & Research Limited (CARE)

Investment Information and Credit Rating Agency (ICRA)
CRISIL Limited
Japan Credit Rating Agency (JCRA)

1. Senior foreign currency debt ratings.

Rating
Baa21
BBB-1
CAREAAA
[ICRA]AAA
CRISIL AAA
BBB+1

PUBLIC RECOGNITION
The Bank received several awards during fiscal 2012 in India and abroad including:
(cid:135)(cid:3) “Most Trusted Private Sector Bank” and 10th in the list of “India’s Most Trusted Service Brands”, by

Brand Equity - Most Trusted Brands 2011

(cid:135)(cid:3) “NFS Operational Excellence Award -2011” in “Best Bank- Private & Foreign Banks Category”, for

ATM network

(cid:135)(cid:3) Only Indian brand to figure in “100 Most Valuable Global Brands Report 2011”, for the second

consecutive year, by BrandZ

(cid:135)(cid:3) “Best Local Bank – Gold“ by Trade and Forfaiting Awards
(cid:135)(cid:3) “Best Foreign Exchange Bank (India)” by Finance Asia
(cid:135)(cid:3) “Overall Best Domestic Interest Rates Services (India)“, “Overall Best Credit Research & Market
Coverage for Local Currency Bonds (India)“,“Best Domestic Provider of FX Services (India)“ and
“Best Domestic FX Provider for Innovative FX Products and Structured Idea (India)“ in Asiamoney
Fixed Income Poll

(cid:135)(cid:3) “Best Derivatives House (India) 2011” by Asset Triple A
(cid:135)(cid:3) “Best House of the Year (India) 2011” by Asia Risk for Excellence in Risk Management
(cid:135)(cid:3) “Winner (India) for vanilla hedging instruments in interest rate & currency products and structured
hedging instruments in interest rates and first runner-up (India) in structured hedging instruments in
currency products” by Asia Risk

(cid:135)(cid:3) “One of top 10 local banks for wholesale banking products in Asia, excluding Japan” by Asia Risk
(cid:135)(cid:3) “House of the Year (India)” for eighth consecutive year since 2004, by Asia Risk
(cid:135)(cid:3) “Best Bond House (India) 2011” by IFR Asia

Annual Report 2011-2012 47

Management’s Discussion & Analysis

BUSINESS ENVIRONMENT
Fiscal 2012 was a challenging year for the global economy. Prolonged uncertainty around the resolution of
the Eurozone sovereign debt crisis, rating downgrades of sovereigns and slow recovery of the US economy
increased risks to global growth.

The Indian economy saw moderation in economic activity during fiscal 2012, following domestic
macroeconomic conditions of high interest rates and slowdown in investments. India’s gross domestic
product (GDP) grew by 6.9% during the first nine months of fiscal 2012, compared to a growth of 8.1% in
the corresponding period of fiscal 2011. During this period, the industrial sector grew by 3.3% compared
to 7.0% in the corresponding period of the previous year. The services sector grew by 8.8%, similar to the
growth in the previous year, while the agriculture sector grew by 3.2% compared to 6.8%. Investments,
as measured by gross fixed capital formation, declined by 0.2% during the first nine months of fiscal 2012
compared to a growth of 8.9% in the corresponding period of fiscal 2011. Private consumption growth also
moderated to 5.1% during the first nine months of fiscal 2012 compared to 8.5% in the corresponding
period of fiscal 2011. The Index of Industrial Production (IIP) recorded a growth of 3.5% year-on-year (y-o-y)
during the first eleven months of fiscal 2012 compared to 8.1% increase in the corresponding period of
fiscal 2011. During this period, production in the mining sector declined by 2.1%, while the manufacturing
sector recorded a growth of 3.7% and electricity sector of 8.7%, as compared to growth of 5.8%, 8.7% and
5.3% respectively in the first eleven months of fiscal 2011. The Central Statistical Organisation has estimated
GDP growth for fiscal 2012 at 6.9%, compared to 8.4% in fiscal 2011.

Inflation, measured by the Wholesale Price Index (WPI), remained above 9.0% levels between April-
November 2011 but moderated from thereon to end the year at 6.9% in March 2012. Average inflation for
fiscal 2012 was 8.8% as compared to 9.5% in fiscal 2011. The decrease was largely driven by falling inflation
in food articles, which declined from 15.8% in fiscal 2011 to 7.4% in fiscal 2012. Manufactured products
inflation initially went up to above 8.0% levels till November 2011, but moderated to 4.9% by March 2012.
Core inflation (defined as manufactured products excluding food products) reduced from 8.5% in March
2011 to 4.7% in March 2012.

Reserve Bank of India (RBI) calibrated its policy stance in line with macroeconomic conditions. During
fiscal 2012, the repo rate was increased by 175 basis points from 6.75% to 8.50%, with the last increase
of 25 basis points effective from October 25, 2011. Based on the moderation in economic growth and the
inflation trajectory, RBI in its mid-quarter monetary policy review in December 2011 paused further tightening
of policy rates. In the third quarter monetary policy review announced in January 2012, RBI reduced the cash
reserve ratio (CRR) by 50 basis points from 6.0% to 5.50%. CRR was further reduced by 75 basis points in
March 2012 to 4.75%. In its annual policy review for fiscal 2013 announced in April 2012, RBI reduced the
repo rate by 50 basis points to 8.00%. During fiscal 2012, in an attempt to improve monetary transmission in
the system, RBI established the repo rate as the single independent policy rate with the reverse repo pegged
at a fixed 100 basis points below the repo rate. Also, a new Marginal Standing Facility was introduced under
which banks could borrow overnight up to one per cent of their net demand and time liabilities, at 100 basis
points above the repo rate.

Liquidity in the system continued to remain in deficit through fiscal 2012. Compared to an average
borrowing by banks under the liquidity adjustment facility (LAF) window of RBI of ` 470.82 billion in
fiscal 2011, average borrowing increased to ` 798.78 billion in fiscal 2012. The liquidity deficit crossed
` 1.00 trillion from November 2011. The average daily borrowing touched a peak of ` 1.96 trillion in
end-March 2012. In view of the tight liquidity conditions, apart from the reduction in CRR, RBI also injected
liquidity through open market operations aggregating around ` 1.30 trillion between November 2011 and
March 2012. The yields on the benchmark 10 year government securities increased by about 58 basis points

to 8.57% at March 30, 2012 from 7.99% at March 31, 2011. In response to tight liquidity conditions and
a rising interest rate environment, scheduled commercial banks increased their deposit and lending rates
particularly in the first half of fiscal 2012. In April 2012, systemic liquidity conditions have improved with the
deficit reducing to around ` 900.00 billion at April 23, 2012. Several banks have reduced their lending and
deposit rates following the monetary policy announcement.

Non-food credit growth moderated during the year, from 21.3% at March 25, 2011 to 16.8% at March 23,
2012, before picking up towards the end of the year. Non-food credit growth at March 30, 2012 was 19.3%.
Based on sector-wise data available till February 2012, growth in credit to industry was 19.1% and to the
services sector was 15.2% on a year-on-year basis. Credit to the infrastructure sector moderated significantly
recording a growth of 18.7% year-on-year at February 24, 2012 compared to 39.7% at February 25, 2011
mainly due to a slowdown in credit to the power and telecommunication sectors. Retail loan growth also
slowed down to 11.4% year-on-year at February 24, 2012 compared to 16.2% at February 25, 2011. Similarly,
deposit growth moderated during the year from 15.9% at March 25, 2011 to 13.4% at March 23, 2012, driven
mainly by the decline in demand deposit growth from a reduction of 0.6% at March 25, 2011 to a reduction
of 2.9% at March 23, 2012. Deposit growth picked up at the year-end, with year-on-year growth in demand
deposits at 15.3% and term deposits at 17.7% at March 30, 2012.

The Union Budget for fiscal 2013 has projected the government’s fiscal deficit to come down from an
estimated 5.9% of GDP in fiscal 2012 to 5.1% in fiscal 2013. RBI has projected India’s GDP to grow by
7.3% in fiscal 2013, with credit growth estimated at 17.0% and deposit growth at 16.0%. RBI has projected
inflation to be at 6.5% in March 2013.

Equity markets remained volatile during fiscal 2012 due to global and domestic events. The Eurozone
sovereign debt crisis and sovereign rating downgrades by rating agencies along with the global economic
slowdown impacted investor sentiment, particularly in the second and third quarter of fiscal 2012. On an
overall basis, the benchmark equity index, the BSE Sensex, declined by 10.4% from 19,445 at March 31,
2011 to 17,404 at March 31, 2012. Foreign institutional investment flows into India during fiscal 2012 were
significantly lower compared to fiscal 2011, with net inflows of around USD 2.74 billion during the first nine
months of fiscal 2012 compared to USD 29.46 billion in the corresponding period of fiscal 2011. In addition,
a steeper slowdown in exports compared to imports during the year, contributed to a deficit of USD 7.09
billion in India’s balance of payments during the first nine months of fiscal 2012 as compared to a surplus of
USD 11.02 billion during the corresponding period of fiscal 2011. The rupee depreciated by 14.6% against
the US dollar from ` 44.65 per US dollar at March 31, 2011 to ` 51.16 per US dollar at March 31, 2012.

First year retail premium underwritten in the life insurance sector decreased by 4.8% (on weighted received
premium basis) to ` 479.41 billion in fiscal 2012 from ` 503.68 billion in fiscal 2011. The average assets under
management of mutual funds decreased by 5.1% to ` 6,647.92 billion in March 2012 from ` 7,005.38 billion
in March 2011. Gross premium of the non-life insurance sector (excluding specialised insurance institutions)
grew by 23.0% to ` 547.62 billion in fiscal 2012 from ` 445.34 billion in fiscal 2011.

Some key regulatory developments in the Indian financial sector during fiscal 2012 include:
(cid:135)(cid:3) In May 2011, RBI increased the interest rate on savings deposits by 50 basis points from 3.5% to 4.0%.
Further, in October 2011, interest rates on savings accounts were deregulated with a uniform interest
rate to be paid on deposits up to ` 100,000 and differential rates permitted for deposits of over ` 100,000
depending on the amount.

(cid:135)(cid:3) RBI enhanced the rates of provisioning for non-performing loans in May 2011. Accordingly, the provision
for restructured non-performing advances when upgraded to standard assets was increased to 2.0% in

Annual Report 2011-2012 49

Management’s Discussion & Analysis

the first year of upgradation from the earlier level of 0.25-1.0%. For the secured portion of assets classified
as doubtful, 25.0% provision was required to be made for assets that were classified as doubtful for a
year (earlier at 20%), 40.0% for assets that were classified as doubtful for one to three years (earlier at
30%) and 100.0% for assets classified as doubtful for more than three years. Further, for sub-standard
assets, a provision of 15.0% of the total outstanding was required with effect from May 2011. This was
an increase over the earlier requirement of 10.0%. Unsecured exposures, which were identified as sub-
standard, attract an additional provision of 10.0%, i.e., a total of 25.0% on the outstanding balance.

(cid:135)(cid:3) In May 2011, the report of the working group to draw up a roadmap for the introduction of holding
company structure was released with key recommendations favouring the financial holding company
structure for the financial sector, particularly large financial groups, with a separate regulatory framework
for these holding companies.

(cid:135)(cid:3) In August 2011, RBI released draft guidelines for licensing of new banks in the private sector. The

minimum capital requirement prescribed is ` 5.00 billion.

(cid:135)(cid:3) In October 2011, branch opening in tier 2 centres (centres with population of 50,000 to 99,999 as per

census 2001) was exempted from prior approval of RBI.

(cid:135)(cid:3) The all-in cost ceiling (over 6 month LIBOR) on external commercial borrowings of three years to five
years maturity was raised from 300 basis points to 350 basis points in November 2011. The all-in cost
ceiling (over 6 month LIBOR) for five years and above maturity was kept unchanged at 500 basis points.
Further, the all-in-cost ceiling (over 6 month LIBOR) for trade credit was enhanced from 200 basis points
to 350 basis points.

(cid:135)(cid:3) In November 2011, RBI issued prudential guidelines for single name credit default swaps on corporate
bonds. Banks were allowed to undertake such transactions, both as market makers as well as users.

(cid:135)(cid:3) In November 2011, RBI announced guidelines permitting the setting up of Infrastructure Debt Funds (IDF)
structured as non-banking finance companies (NBFC). Guidelines for banks sponsoring IDF-NBFC include
cap on equity holding of 49.0% of the IDF-NBFC, and investment not exceeding 10% of the bank’s paid-
up capital and reserves.

(cid:135)(cid:3) In December 2011, RBI announced the deregulation of interest rates on non-resident (external) rupee
deposits and ordinary non-resident accounts, thus permitting banks to determine the interest rate on
savings and term deposits of maturity of one year and above.

(cid:135)(cid:3) RBI issued guidelines on investments in subsidiaries and other companies, including investments in
non-financial services companies in December 2011. According to the guidelines, equity investments by
a bank in a subsidiary company or other financial services company cannot exceed 10% of the bank’s
paid-up share capital and reserves. Equity investment by banks in non-financial services companies was
capped at 10.0% of the investee company’s paid-up share capital. Equity investments in non-financial
services companies at the group level, including investments by the bank’s subsidiaries, cannot exceed
20% of the investee company’s paid-up share capital. Also, overall equity investments by a bank, including
investments in its subsidiaries and other companies, cannot exceed 20.0% of the bank’s paid-up share
capital and reserves.

(cid:135)(cid:3) In December 2011, draft guidelines for implementing the Basel III capital regulations were announced
by RBI. Further, in May 2012, final guidelines were issued as per which Indian banks would have to
maintain a minimum common equity tier I capital of 5.5%, a minimum tier 1 capital ratio of 7.0% of
risk weighted assets, a capital conservation buffer of 2.5% comprising only common equity capital and
a minimum overall capital adequacy ratio of 9.0%. The Basel III regulations would be implemented in
phases beginning from January 2013 and would be fully implemented by March 31, 2018.

(cid:135)(cid:3) In December 2011, RBI issued guidelines on the internal ratings based approach for calculation of capital
charge for credit risks. Banks intending to migrate to the Advanced Measurement Approach for operational
risk and internal ratings based approaches for credit risk are required to apply to RBI after April 1, 2012.

(cid:135)(cid:3) Microfinance institutions (MFIs) were brought under the regulatory ambit of RBI. Also, RBI decided to
give priority sector status to bank credit to MFIs extended on or after April 1, 2011 for on-lending for
specified purposes. In other related announcements, in December 2011, RBI decided to provide NBFC

status to MFIs by allowing a new category of NBFC-MFIs having a minimum networth of ` 50.0 million,
a minimum capital adequacy ratio of 15.0% of risk weighted assets and with interest on individual loans
capped at 25.0% per annum with an aggregate margin cap of 12.0%. Also, MFIs were allowed to raise
external commercial borrowings of up to US$ 10 million.

(cid:135)(cid:3) In February 2012, RBI released a draft report of the committee set up to review the extant classification
and guidelines pertaining to priority sector lending. The committee has recommended maintaining the
priority sector lending target of 40% of adjusted net bank credit. It has recommended that the distinction
between direct and indirect agriculture lending be removed, while maintaining the overall target for
agriculture lending at 18% of adjusted net bank credit and having a new sub-target of 9% for loans to
small and marginal farmers and 7% for loans to micro and small enterprises. The committee has also
recommended that deposits deployed against shortfall in achievement of priority sector lending targets
be netted from the actual penalty for the subsequent years for non-achievement of targets.

(cid:135)(cid:3) In March 2012, RBI released a discussion paper on dynamic loan loss provisioning framework, which
proposes to replace the existing general provisioning norms. The objective is to limit the volatility in loan
loss provisioning requirements witnessed during an economic cycle.

STANDALONE FINANCIALS AS PER INDIAN GAAP
Summary
During fiscal 2012, we focused on profitable growth by leveraging our rebalanced funding mix and strong
capital position to grow our loan portfolio and improving the credit quality of our loan portfolio.

Our profit after tax increased by 25.5% from ` 51.51 billion in fiscal 2011 to ` 64.65 billion in fiscal 2012.
The increase in profit after tax was mainly due to a 19.0% increase in net interest income, 12.8% increase
in non-interest income and 30.8% decrease in provisions and contingencies (excluding provisions for tax).
Net interest income increased by 19.0% from ` 90.17 billion in fiscal 2011 to ` 107.34 billion in fiscal 2012,
reflecting an increase of 9 basis points in net interest margin and an increase of 15.0% in average interest-
earning assets.

Non-interest income increased by 12.8% from ` 66.48 billion in fiscal 2011 to ` 75.02 billion in fiscal
2012. The increase in non-interest income was primarily due to an increase in dividend income
from subsidiaries from ` 4.11 billion in fiscal 2011 to ` 7.36 billion in fiscal 2012 and a decrease in
loss from treasury-related activities from ` 2.15 billion in fiscal 2011 to ` 0.13 billion in fiscal 2012.
Loss from treasury-related activities for fiscal 2012 primarily includes realised/MTM provision on security
receipts, offset, in part, by reversal of MTM loss/realised gain on investments in government of India securities
and other fixed income positions and gain on equity/preference investments. Fee income increased by 4.5% from
` 64.19 billion in fiscal 2011 to ` 67.07 billion in fiscal 2012.

Non-interest expenses increased by 18.6% from ` 66.17 billion in fiscal 2011 to ` 78.50 billion in fiscal
2012 primarily due to an increase in employee expenses and other administrative expenses. Provisions
and contingencies (excluding provisions for tax) decreased by 30.8% from ` 22.87 billion in fiscal 2011 to
` 15.83 billion in fiscal 2012. The decrease in provisions and contingencies (excluding provisions for tax) was
primarily due to a reduction in provisions for retail non-performing loans, as accretion to retail non-performing
loans declined sharply from fiscal 2011.

Total assets increased by 16.6% from ` 4,062.34 billion at March 31, 2011 to ` 4,736.47 billion at
March 31, 2012. Total deposits increased by 13.3% from ` 2,256.02 billion at March 31, 2011 to
` 2,555.00 billion at March 31, 2012. Savings account deposits increased by 13.7% from ` 668.69 billion at
March 31, 2011 to ` 760.46 billion at March 31, 2012. Current and savings account (CASA) deposits ratio was
43.5% at March 31, 2012 compared to 45.1% at March 31, 2011. Term deposits increased by 16.6% from
` 1,239.55 billion at March 31, 2011 to ` 1,444.81 billion at March 31, 2012. Total advances increased by 17.3%
from ` 2,163.66 billion at March 31, 2011 to ` 2,537.28 billion at March 31, 2012 primarily due to an increase
in domestic and overseas corporate loans and an increase in the retail loan book. Net non-performing assets
decreased by 22.9% from ` 24.58 billion at March 31, 2011 to ` 18.94 billion at March 31, 2012 and the net
non-performing asset ratio decreased from 0.94% at March 31, 2011 to 0.62% at March 31, 2012.

Annual Report 2011-2012 51

Management’s Discussion & Analysis

We continued to expand our branch network in India. Our branch network in India increased from 2,529
branches and extension counters at March 31, 2011 to 2,752 branches and extension counters at
March 31, 2012. We also increased our ATM network from 6,104 ATMs at March 31, 2011 to 9,006 ATMs
at March 31, 2012.

The total capital adequacy ratio of ICICI Bank on a standalone basis at March 31, 2012 in accordance with
RBI guidelines on Basel II was 18.5% with a Tier I capital adequacy ratio of 12.7% compared to a total capital
adequacy ratio of 19.5% and Tier I capital adequacy ratio of 13.2% at March 31, 2011.

Operating results data
The following table sets forth, for the periods indicated, the operating results data.

` in billion, except percentages

Fiscal 2011
` 259.74
169.57
90.17

Fiscal 2012
` 335.42
228.08
107.34

% change
29.1%
34.5
19.0

Particulars
Interest income
Interest expense
Net interest income
Non-interest income
- Fee income1
- Treasury income
- Lease and other income
Operating income
Operating expenses
Direct marketing agency (DMA) expense2
Lease depreciation, net of lease equalisation
Operating profit
Provisions, net of write-backs
Profit before tax
Tax, including deferred tax
Profit after tax

67.07
(0.13)
8.08
182.36
76.48
1.60
0.42
103.86
15.83
88.03
23.38
` 64.65
Includes merchant foreign exchange income and margin on customer derivative transactions.

64.19
(2.15)
4.44
156.65
63.81
1.57
0.79
90.48
22.87
67.61
16.10
` 51.51

4.5
(94.0)
82.0
16.4
19.9
1.9
(46.8)
14.8
(30.8)
30.2
45.2
25.5%

1.
2. Represents commissions paid to DMAs for origination of retail loans. These commissions are expensed upfront.
3. All amounts have been rounded off to the nearest ` 10.0 million.
4. Prior period figures have been re-grouped/re-arranged, where necessary.

Key ratios
The following table sets forth, for the periods indicated, the key financial ratios.

Particulars

Return on average equity (%)1

Return on average assets (%)2
Earnings per share (`)
Book value per share (`)

Fee to income (%)

Cost to income (%)3

Fiscal 2011

Fiscal 2012

9.58

1.34

45.27

478.31

41.18

41.95

11.09
1.50
56.11
524.03
36.86
42.91

1. Return on average equity is the ratio of the net profit after tax to the quarterly average equity share capital and

reserves.

2. Return on average assets is the ratio of net profit after tax to average assets. The average balances are the
averages of daily balances, except averages of foreign branches which are calculated on a monthly basis till
October 31, 2010 and on a fortnightly basis thereafter.

3. Cost represents operating expense including DMA cost which is expensed upfront but excluding lease
depreciation. Income represents net interest income and non-interest income and is net of lease depreciation.

Net interest income and spread analysis
The following table sets forth, for the periods indicated, the net interest income and spread analysis.

` in billion, except percentages

Interest income
Interest expense
Net interest income
Average interest-earning assets1
Average interest-bearing liabilities1
Net interest margin
Average yield
Average cost of funds
Interest spread

Fiscal 2011
` 259.74
169.57
90.17
3,418.59
` 3,168.26
2.64%
7.60%
5.35%
2.25%

Fiscal 2012
` 335.42
228.08
107.34
3,932.59
` 3,603.51
2.73%
8.53%
6.33%
2.20%

% change
29.1%
34.5
19.0
15.0
13.7%
—
—
—
—

1. The average balances are the averages of daily balances, except averages of foreign branches which are

calculated on monthly basis till October 31, 2010 and on a fortnightly basis thereafter.

2. All amounts have been rounded off to the nearest ` 10.0 million.

Net interest income increased by 19.0% from ` 90.17 billion in fiscal 2011 to ` 107.34 billion in fiscal 2012
reflecting an increase in net interest margin from 2.64% in fiscal 2011 to 2.73% in fiscal 2012 and a 15.0%
increase in the average volume of interest-earning assets.

The yield on interest-earning assets increased from 7.60% in fiscal 2011 to 8.53% in fiscal 2012 and cost of
funds increased from 5.35% in fiscal 2011 to 6.33% in fiscal 2012. Net interest margin increased from 2.64%
in fiscal 2011 to 2.73% in fiscal 2012. The higher increase in average interest-earning assets compared to
increase in average interest-bearing liabilities led to an increase in net interest margin. Net interest margin of
overseas branches improved from 0.88% for fiscal 2011 to 1.23% for fiscal 2012 primarily due to increase in
yield on overseas advances.

The following table sets forth, for the periods indicated, the trend in yield, cost, spread and margin.

Yield on interest-earning assets

- On advances

- On investments

- On SLR investments

- On other investments

- On other interest-earning assets

Cost of interest-bearing liabilities

- Cost of deposits

- Current and savings account (CASA) deposits

- Term deposits

- Cost of borrowings

Interest spread

Net interest margin

Fiscal 2011
7.60%

8.53

6.39

6.29

6.55

6.46

5.35

4.92

2.46

6.51

6.14

2.25

2.64%

Fiscal 2012
8.53%
9.55
7.24
7.34
7.10
6.21
6.33
6.12
2.87
8.21
6.71
2.20
2.73%

Yield on interest-earning assets increased from 7.60% in fiscal 2011 to 8.53% in fiscal 2012 primarily due to
the following factors:

(cid:135)(cid:3) Yield on average advances increased from 8.53% in fiscal 2011 to 9.55% in fiscal 2012 primarily due to
increase in yield on domestic and overseas corporate loans which increased as a result of incremental
disbursements at higher lending rates and reflecting the rising interest rate environment. Further, the yield
on advances was also higher on account of increase in ICICI Bank‘s Base Rate from 8.75% at March 31, 2011
to 10.00% at March 31, 2012.

Annual Report 2011-2012 53

Management’s Discussion & Analysis

(cid:135)(cid:3) Yield on average interest-earning investments increased from 6.39% in fiscal 2011 to 7.24% in fiscal
2012 primarily due to investment in Statutory Liquidity Ratio (SLR) securities at higher yields and reset
of interest rates on floating rate bonds at higher levels. The yield on average interest-earning non-SLR
investments increased from 6.55% in fiscal 2011 to 7.10% in fiscal 2012, primarily due to an increase in
investment in higher-yielding credit substitutes like corporate bonds and debentures.

(cid:135)(cid:3) Interest income also includes interest on income tax refund of ` 0.80 billion in fiscal 2012 compared to
` 1.65 billion in fiscal 2011. The receipt, amount and timing of such income depends on the nature and
timing of determinations by tax authorities and is not consistent or predictable.

(cid:135)(cid:3) During fiscal 2012, interest income was also impacted by losses on securitised pools of assets (including

credit losses on existing pools) of ` 2.02 billion as compared to ` 5.49 billion in fiscal 2011.

(cid:135)(cid:3) RBI reduced the CRR by 50 basis points from 6.00% to 5.50% with effect from January 28, 2012 and
further by 75 basis points to 4.75% with effect from March 10, 2012. As CRR balances do not earn any
interest income, these reductions had a positive impact on the overall yield in fiscal 2012.

The cost of funds increased from 5.35% in fiscal 2011 to 6.33% in fiscal 2012 primarily due to the following factors:

(cid:135)(cid:3) The cost of deposits increased from 4.92% in fiscal 2011 to 6.12% in fiscal 2012. The cost of average term
deposits increased from 6.51% in fiscal 2011 to 8.21% in fiscal 2012 reflecting the impact of increase in
deposit rates seen from the second half of fiscal 2011. The deposit rates continued to increase during
fiscal 2012 in line with system rates due to tight systemic liquidity, the rising interest rate environment
and monetary policy stance of RBI. The impact of the increase in deposits rates in fiscal 2011 and further
increase in deposit rates during fiscal 2012 is reflected in higher cost of deposits.

(cid:135)(cid:3) RBI increased the rate on savings account deposits to 4.00% on daily average balances with effect from
May 3, 2011 resulting in an increase in cost of average savings account deposits in fiscal 2012 compared
to fiscal 2011. In its second quarter review of monetary policy 2011-12 issued on October 25, 2011, RBI
deregulated the savings bank deposit interest rate with immediate effect and banks are free to determine
their savings bank deposit interest rate. Any increase in the savings deposit rate by the Bank will result
in increase in cost of deposits.

(cid:135)(cid:3) Cost of borrowings increased from 6.14% in fiscal 2011 to 6.71% in fiscal 2012 primarily on account of
increase in cost of refinance borrowings and call and term borrowings in line with movement in market rates.

Net interest margin of overseas branches improved from 0.88% for fiscal 2011 to 1.23% for fiscal 2012
primarily due to increase in yield on overseas advances. Yield on overseas advances increased primarily due
to new disbursements at higher interest rates and repayment and prepayment of low yielding loans.

The reduction of CRR by 125 basis points to 4.75% and a reduction in repo rate by 50 basis points to
8.00% by RBI, indicates a reversal in policy stance. While the interest rates in the system are believed to
have peaked the extent and timing of decline in interest rates will depend on systemic liquidity, the future
movement of inflation as well as on the evolving fiscal situation.

The following table sets forth, for the period indicated, the trend in average interest-earning assets and
average interest-bearing liabilities:

Advances
Interest-earning investments
Other interest-earning assets
Total interest-earning assets
Deposits
Borrowings3
Total interest-bearing liabilities

Fiscal 2011
` 1,926.52
1,237.42
254.65
3,418.59
2,046.04
1,122.23
` 3,168.26

` in billion, except percentages
% change
20.3%
8.1
9.3
15.0
14.2
13.0
13.7%

Fiscal 2012
` 2,316.69
1,337.46
278.44
3,932.59
2,335.93
1,267.58
` 3,603.51

1. Average investments and average borrowings include average short-term re-purchase transactions.
2. Average balances are the averages of daily balances, except averages of foreign branches which are calculated

on a monthly basis till October 31, 2010 and on a fortnightly basis thereafter.

3. Borrowings exclude preference share capital.

The average volume of interest-earning assets increased by 15.0% from ` 3,418.59 billion in fiscal 2011 to
` 3,932.59 billion in fiscal 2012. The increase in average interest-earning assets was primarily on account of an
increase in average advances by ` 390.17 billion and average interest-earning investments by ` 100.04 billion.

Average advances increased by 20.3% from ` 1,926.52 billion in fiscal 2011 to ` 2,316.69 billion in fiscal
2012 primarily on account of increase in domestic and overseas corporate advances. Retail advances
increased by 7.7% from ` 836.75 billion at March 31, 2011 to ` 901.30 billion at March 31, 2012.
In US dollar terms, the net advances of overseas branches increased by 9.7% from US$ 12.4 billion
at March 31, 2011 to US$ 13.6 billion at March 31, 2012. However, due to rupee depreciation, the net
advances of overseas branches, in rupee terms, increased by 26.0% from ` 550.97 billion at March 31, 2011 to
` 694.03 billion at March 31, 2012.

Average interest-earning investments increased by 8.1% from ` 1,237.42 billion in fiscal 2011 to ` 1,337.46
billion in fiscal 2012, primarily due to an increase in average interest-earning non-SLR investments by 17.0%
from ` 455.34 billion in fiscal 2011 to ` 532.94 billion in fiscal 2012. Average SLR investments increased by
2.9% from ` 782.07 billion in fiscal 2011 to ` 804.52 billion in fiscal 2012. Interest-earning non-SLR investments
primarily include investments in corporate bonds and debentures, certificates of deposits, commercial paper,
Rural Infrastructure Development Fund (RIDF) & related investments and investments in liquid mutual funds.

Average interest-bearing liabilities increased by 13.7% from ` 3,168.26 billion in fiscal 2011 to ` 3,603.51
billion in fiscal 2012 on account of an increase of ` 289.89 billion in average deposits and an increase of
` 145.35 billion in average borrowings. The increase in average deposits was due to an increase in average
term deposits and average CASA deposits. The ratio of average CASA deposits to average deposits remained
constant at about 39.1% in fiscal 2012 compared to fiscal 2011. The increase in average borrowings was due
to increase in overseas borrowings and call and short-term borrowings. The overseas borrowings increased
primarily due to the impact of rupee depreciation.

Non-interest income
The following tables set forth, for the periods indicated, the principal components of non-interest income.

` in billion, except percentages

Fee income1
Income from treasury-related activities
Lease and other income2
Total non-interest income

Fiscal 2011
` 64.19
(2.15)
4.44
` 66.48

Fiscal 2012
` 67.07
(0.13)
8.08
` 75.02

% change
4.5%
(94.0)
82.0
12.8%

1.
2.

Includes merchant foreign exchange income and income on customer derivative transactions.
Includes dividend income received from subsidiaries.

Non-interest income primarily includes fee and commission income, income from treasury-related activities
and lease and other income. The non-interest income increased by 12.8% from ` 66.48 billion in fiscal 2011
to ` 75.02 billion in fiscal 2012. The increase in non-interest income was primarily on account of a decrease
in loss from treasury-related activities and an increase in dividend income from subsidiaries.

Fee income
Fee income primarily includes fees from corporate clients such as loan processing fees, transaction banking
fees and structuring fees and fees from retail customers such as loan processing fees, fees from credit cards
business, account service charges and third party referral fees.

Fee income increased from ` 64.19 billion in fiscal 2011 to ` 67.07 billion in fiscal 2012 primarily due to an
increase in fee income from forex and derivative products including remittance fees, credit cards, third
party referral fees and transaction banking fees, offset, in part, by decrease in loan processing fees due to a
slowdown in new project and investment plans for the corporate sector.

Annual Report 2011-2012 55

Management’s Discussion & Analysis

Income from foreign exchange transactions with clients and from margins on derivatives transactions with
clients increased by 42.8% from ` 7.95 billion in fiscal 2011 to ` 11.35 billion in fiscal 2012.

Profit/(loss) on treasury-related activities (net)
Income from treasury-related activities includes income from sale of investments and revaluation of
investments on account of changes in unrealised profit/(loss) in the fixed income, equity and preference
share portfolio, units of venture funds and security receipts.

Loss on treasury-related activities decreased from ` 2.15 billion in fiscal 2011 to ` 0.13 billion in fiscal 2012.
Loss from treasury-related activities for fiscal 2012 primarily includes realised/MTM provision on security
receipts, offset, in part, by reversal of MTM loss/realised gain on investments in government of India
securities and other fixed income positions and gain on equity/preference investments. Treasury income
for fiscal 2011 primarily included loss on investments in government of India securities and realised/MTM
provision on security receipts, offset, in part, by gains on equity investments.

During fiscal 2012, there was a gain on the credit derivatives portfolio amounting to ` 0.56 billion compared
to a gain of ` 0.15 billion in fiscal 2011.

At March 31, 2012, we had an outstanding net investment of ` 18.32 billion in security receipts issued by
asset reconstruction companies in relation to sale of non-performing loans. Security receipts issued by asset
reconstruction companies are valued as per net asset value obtained from the asset reconstruction company
from time to time. During fiscal 2012, the impact of these security receipts on the income from treasury-
related activities was a loss of ` 4.08 billion compared to a loss of ` 2.31 billion in fiscal 2011.

Lease and other income
Lease and other income primarily includes dividend from subsidiaries, lease rentals and profit on sale of fixed
assets. Lease and other income increased from ` 4.44 billion in fiscal 2011 to ` 8.08 billion in fiscal 2012
primarily on account of increase in dividend income from subsidiaries. During fiscal 2012, dividend income
included dividend of ` 2.32 billion received from ICICI Prudential Life Insurance Company and ` 1.22 billion
from ICICI Bank UK.

Non-interest expense
The following table sets forth, for the periods indicated, the principal components of non-interest expense.
` in billion, except percentages

Payments to and provisions for employees
Depreciation on own property (including non
banking assets)
Other administrative expenses
Total non-interest expense (excluding lease
depreciation and direct marketing agency expenses)
Depreciation (net of lease equalisation)
on leased assets
Direct marketing agency expenses
Total non-interest expense

Fiscal 2011
` 28.17

Fiscal 2012
` 35.15

% change

24.8%

4.84

30.80

63.81

0.79
1.57
` 66.17

4.82

36.51

76.48

0.42
1.60
` 78.50

(0.4)

18.5

19.9

(46.8)
1.9
18.6%

Non-interest expenses primarily include employee expenses, depreciation on assets, direct marketing agency
expenses and other administrative expenses. In fiscal 2012, non-interest expenses increased by 18.6% from
` 66.17 billion in fiscal 2011 to ` 78.50 billion in fiscal 2012 primarily due to an increase in employee expenses
and other administrative expenses.

Payments to and provisions for employees
Employee expenses increased by 24.8% from ` 28.17 billion in fiscal 2011 to ` 35.15 billion in fiscal 2012.
Employee expenses increased primarily due to annual increase in salaries and performance bonus and
increase in the employee base, including sales executives, employees on fixed term contracts and interns.
The average number of employees increased by around 18% in fiscal 2012 compared to fiscal 2011 (at
March 31, 2011: 56,969 employees and at March 31, 2012: 58,276 employees).

Depreciation
Depreciation on owned property decreased marginally from ` 4.84 billion in fiscal 2011 to ` 4.82 billion in
fiscal 2012. Depreciation on leased assets decreased from ` 0.79 billion in fiscal 2011 to ` 0.42 billion in fiscal
2012 primarily due to a reduction in leased assets.

Other administrative expenses
Other administrative expenses primarily include rent, taxes and lighting, advertisement and publicity, repairs
and maintenance and other expenditure. Other administrative expenses increased by 18.5% from ` 30.80
billion in fiscal 2011 to ` 36.51 billion in fiscal 2012. The increase in other administrative expenses was
primarily due to increase in our branch and ATM network. The number of branches and extension counters
(excluding foreign branches and offshore banking units) increased from 2,529 at March 31, 2011 to 2,752 at
March 31, 2012. We also increased our ATM network from 6,104 ATMs at March 31, 2011 to 9,006 ATMs at
March 31, 2012. The increase in other administrative expenses was offset, in part, by a decrease in collection
expenses and advertisement expenses.

Direct marketing agency expenses
Direct marketing agency expenses increased marginally from ` 1.57 billion in fiscal 2011 to ` 1.60 billion in
fiscal 2012. We use marketing agents, called direct marketing agents or associates, for sourcing our retail
assets. We include commissions paid to these direct marketing agents in non-interest expense. In line with
the RBI guidelines, these commissions are expensed upfront and not amortised over the life of the loan.

Provisions and contingencies (excluding provisions for tax)
The following tables set forth, for the periods indicated, the components of provisions and contingencies.

` in billion, except percentages

Provision for investments (including credit substitutes) (net)
Provision for non-performing and other assets1
Provision for standard assets
Others
Total provisions and contingencies (excluding
provisions for tax)

Includes restructuring related provision.

Fiscal 2011
` 2.04
19.77
—
1.06

Fiscal 2012
` 4.13
9.93
—
1.77

% change
102.5%
(49.8)
—
67.0

` 22.87

` 15.83

(30.8)%

Provisions are made by us on standard, sub-standard and doubtful assets at rates prescribed by RBI. Loss
assets and unsecured portions of doubtful assets are provided/written off as required by extant RBI guidelines.
Subject to the minimum provisioning levels prescribed by RBI, provisions on retail non-performing loans are
made at the borrower level in accordance with our retail assets provisioning policy. The specific provisions
on retail loans held by us are higher than the minimum regulatory requirement.

During fiscal 2012, RBI revised rates of provisioning for non-performing assets and restructured advances.
Accordingly, we made an additional provision of 5% to 10% on our non-performing advances. During fiscal
2012, RBI also revised rates of provisioning for standard restructured advances from 0.25%-1% (depending
upon the category of advance) to 2%.
Provisions and contingencies (excluding provisions for tax) decreased by 30.8% from ` 22.87 billion in fiscal
2011 to ` 15.83 billion in fiscal 2012 primarily due to a reduction in provisions for retail non-performing loans.
The reduction in provision against retail non-performing loans was primarily due to a sharp reduction in
accretion to retail non-performing loans since fiscal 2011.

Annual Report 2011-2012 57

Management’s Discussion & Analysis

Provision for investments increased from ` 2.04 billion in fiscal 2011 to ` 4.13 billion in fiscal 2012 primarily
due to permanent diminution recognised on certain investments.

Our provisioning coverage ratio at March 31, 2012 computed as per the RBI guidelines was 80.4%.

No additional general provision was required on standard assets during fiscal 2012. RBI guidelines do not
permit write-back of excess provisions already made and therefore we held a cumulative general provision
of ` 14.80 billion at March 31, 2012 compared to the general provision requirement of about ` 13.82 billion.

Tax expense
The income tax expense (including wealth tax) increased by 45.2% from ` 16.10 billion in fiscal 2011 to
` 23.38 billion in fiscal 2012. The effective tax rate of 26.6% in fiscal 2012 was higher compared to the
effective tax rate of 23.8% in fiscal 2011. The effective tax rate for fiscal 2011 included tax benefits related to
the amalgamation of Bank of Rajasthan.

Financial condition
Assets
The following table sets forth, at the dates indicated, the principal components of assets.

` in billion, except percentages

Assets

At March 31, 2011 At March 31, 2012 % change

Cash and bank balances
Investments
- Government and other approved securities1
- RIDF and other related investments2
- Equity investment in subsidiaries
- Other investments
Advances
- Domestic
- Overseas branches
Fixed assets (including leased assets)
Other assets
Total assets
1. Banks in India are required to maintain a specified percentage, currently 24.0%, of their net demand and time

` 362.29
1,595.60
869.48
181.03
124.53
420.56
2,537.28
1,843.25
694.03
46.15
195.15
` 4,736.47

` 340.90
1,346.86
641.61
150.80
124.53
429.92
2,163.66
1,612.69
550.97
47.44
163.48
` 4,062.34

6.3%
18.5
35.5
20.0
—
(2.2)
17.3
14.3
26.0
(2.7)
19.4
16.6%

liabilities by way of liquid assets like cash, gold or approved unencumbered securities.
Investments made in RIDF and other such entities in lieu of shortfall in the amount required to be lent to certain
specified sectors called priority sector as per RBI guidelines.
3. All amounts have been rounded off to the nearest ` 10.0 million.

Total assets increased by 16.6% from ` 4,062.34 billion at March 31, 2011 to ` 4,736.47 billion at March 31,
2012, primarily due to an increase in advances and investments. Net advances increased by 17.3% from
` 2,163.66 billion at March 31, 2011 to ` 2,537.28 billion at March 31, 2012. Investments increased by 18.5%
from ` 1,346.86 billion at March 31, 2011 to ` 1,595.60 billion at March 31, 2012.

Cash and cash equivalents
Cash and cash equivalents include cash in hand and balances with RBI and other banks, including money
at call and short notice. Cash and cash equivalents increased from ` 340.90 billion at March 31, 2011 to
` 362.29 billion at March 31, 2012. The increase was primarily due to an increase in term money lending
and call money lending by overseas branches. The balances with RBI decreased from ` 171.23 billion at
March 31, 2011 to ` 157.92 billion at March 31, 2012 primarily due to reduction in CRR by 125 basis points
from 6.00% at March 31, 2011 to 4.75% at March 31, 2012.

Investments
Total investments increased by 18.5% from ` 1,346.86 billion at March 31, 2011 to ` 1,595.60 billion at
March 31, 2012, primarily due to an increase in investment in government securities by ` 228.19 billion,
corporate bonds and debentures by ` 33.67 billion, RIDF and related investments in lieu of shortfall in directed
lending requirements by ` 30.23 billion and certificates of deposit by ` 16.83 billion at March 31, 2012
compared to March 31, 2011. The investment in mutual funds decreased by ` 17.25 billion, gross funded
credit derivatives by ` 10.60 billion, pass-through-certificates by ` 9.71 billion and commercial paper by ` 5.70
billion at March 31, 2012 compared to March 31, 2011. The transactions with RBI under LAF are accounted
for as borrowing and lending transactions at March 31, 2012, while they were previously accounted for as
purchase and sale transactions. At March 31, 2012, we had an outstanding net investment of ` 18.32 billion
in security receipts issued by asset reconstruction companies in relation to sale of non-performing loans
compared to ` 28.31 billion at March 31, 2011. At March 31, 2012, we have notional non-funded credit
derivatives of ` 10.25 billion. We have no funded credit derivatives outstanding at March 31, 2012.

Advances
Net advances increased by 17.3% from ` 2,163.66 billion at March 31, 2011 to ` 2,537.28 billion at March 31,
2012 primarily due to increase in domestic and overseas corporate loans. Net retail advances increased
by 7.7% from ` 836.75 billion at March 31, 2011 to ` 901.30 billion at March 31, 2012. Net advances of
overseas branches (including offshore banking unit) increased in USD terms by 9.7% from US$ 12.4 billion at
March 31, 2011 to US$ 13.6 billion at March 31, 2012. In rupee terms, net advances of overseas branches
(including offshore banking unit) increased by 26.0% from ` 550.97 billion at March 31, 2011 to ` 694.03
billion at March 31, 2012.

Fixed and other assets
Net fixed assets decreased by 2.7% from ` 47.44 billion at March 31, 2011 to ` 46.15 billion at
March 31, 2012 primarily due to a decrease in assets given on lease. Other assets increased by 19.4% from
` 163.48 billion at March 31, 2011 to ` 195.15 billion at March 31, 2012.

Liabilities
The following table sets forth, at the dates indicated, the principal components of liabilities (including capital
and reserves).

` in billion, except percentages

Liabilities
Equity share capital
Reserves
Deposits
- Savings account deposits
- Current account deposits
- Term deposits
Borrowings (excluding subordinated debt
and preference share capital)
- Domestic
- Overseas branches
Subordinated debt (included in Tier-1 and
Tier-2 capital)1
- Domestic
- Overseas branches
Preference share capital
Other liabilities
Total liabilities

At March 31, 2011 At March 31, 2012 % change
0.1%
9.9
13.3
13.7
0.6
16.6

` 11.53
592.52
2,555.00
760.46
349.73
1,444.81

` 11.52
539.39
2,256.02
668.69
347.78
1,239.55

728.13
192.75
535.38

363.91
348.80
15.11
3.50
159.87
` 4,062.34

1,022.00
377.38
644.62

376.15
358.90
17.25
3.50
175.77
` 4,736.47

40.4
95.8
20.4

3.4
2.9
14.2
—
9.9
16.6%

1.
Included in Schedule 4 - “Borrowings” of the balance sheet.
2. All amounts have been rounded off to the nearest ` 10.0 million.

Annual Report 2011-2012 59

Management’s Discussion & Analysis

Total liabilities (including capital and reserves) increased by 16.6% from ` 4,062.34 billion at March 31, 2011
to ` 4,736.47 billion at March 31, 2012, primarily due to an increase in borrowings and deposits. Deposits
increased from ` 2,256.02 billion at March 31, 2011 to ` 2,555.00 billion at March 31, 2012. Borrowings,
including subordinated debt and preference share capital, increased from ` 1,095.54 billion at March 31,
2011 to ` 1,401.65 billion at March 31, 2012.

Deposits
Deposits increased by 13.3% from ` 2,256.02 billion at March 31, 2011 to ` 2,555.00 billion at March 31,
2012. Term deposits increased from ` 1,239.55 billion at March 31, 2011 to ` 1,444.81 billion at
March 31, 2012, while savings deposits increased from ` 668.69 billion at March 31, 2011 to ` 760.46 billion at
March 31, 2012 and current deposits increased from ` 347.78 billion at March 31, 2011 to ` 349.73 billion at
March 31, 2012. Total deposits at March 31, 2012 formed 64.6% of the funding (i.e. deposits and borrowings,
including subordinated debt and excluding preference share capital). The current and savings account
deposits increased from ` 1,016.47 billion at March 31, 2011 to ` 1,110.19 billion at March 31, 2012.

Borrowings (including subordinated debt and preference share capital)
Borrowings increased from ` 1,095.54 billion at March 31, 2011 to ` 1,401.65 billion at March 31, 2012
primarily due to an increase in transactions with RBI under LAF and overseas borrowings, offset, in part,
by repayment of domestic term money borrowings. The transactions with RBI under LAF are accounted
for as borrowing and lending transactions from the quarter ended March 31, 2012, while they were
previously accounted for as purchase and sale transactions. At March 31, 2012, ` 168.00 billion has
been recorded as borrowings under LAF. The increase in overseas borrowings was on account of rupee
depreciation, bond borrowings and short-term borrowings. The borrowings of overseas branches
(including offshore banking unit) increased in USD terms by 5.7% from US$ 12.3 billion at March 31,
2011 to US$ 13.0 billion at March 31, 2012. In rupee terms, borrowings of overseas branches (including
offshore banking unit) increased by 20.2% from ` 550.48 billion at March 31, 2011 to ` 661.87 billion at
March 31, 2012. The capital-eligible borrowings, other than preference share capital, increased from
` 363.91 billion at March 31, 2011 to ` 376.15 billion at March 31, 2012.

Equity share capital and reserves
Equity share capital and reserves increased from ` 550.91 billion at March 31, 2011 to ` 604.05 billion at
March 31, 2012 primarily due to annual accretion to reserves out of profit.

Off balance sheet items, commitments and contingencies
The following table sets forth, for the periods indicated, the principal components of contingent liabilities.

` in billion

Assets

Claims against the Bank, not acknowledged as debts
Liability for partly paid investments
Notional principal amount of outstanding forward exchange
contracts
Guarantees given on behalf of constituents
Acceptances, endorsements and other obligations
Notional principal amount of currency swaps
Notional principal amount of interest rate swaps and
currency options and interest rate futures
Other items for which the Bank is contingently liable
Total

At March 31, 2011 At March 31, 2012
` 29.31
0.13

` 17.02
0.13

2,468.62
826.27
393.34
561.28

4,903.90
60.66
` 9,231.22

3,560.05
955.01
568.86
616.40

3,362.01
62.88
` 9,154.65

We enter into foreign exchange forwards, options, swaps and other derivative products to enable customers
to transfer, modify or reduce their foreign exchange and interest rate risk and to manage our own interest

rate and foreign exchange positions. We manage our foreign exchange and interest rate risk with reference
to limits set by RBI as well as those set internally. An interest rate swap does not entail exchange of notional
principal and the cash flow arises on account of the difference between interest rate pay and receive legs
of the swaps which is generally much smaller than the notional principal of the swap. With respect to the
transactions entered into with customers, we generally enter into off-setting transactions in the inter-bank
market. This results in generation of a higher number of outstanding transactions and hence a large value of
gross notional principal of the portfolio, while the net market risk is low. For example, if a transaction entered
into with a customer is covered by an exactly opposite transaction entered into with counter-party, the net
market risk of the two transactions will be zero whereas the notional principal which is reflected as an off-
balance sheet item will be the sum of both the transactions.

As a part of project financing and commercial banking activities, we have issued guarantees to support
regular business activities of clients. These generally represent irrevocable assurances that we will make
payments in the event that the customer fails to fulfill its financial or performance obligations. Financial
guarantees are obligations to pay a third party beneficiary where a customer fails to make payment towards
a specified financial obligation. Performance guarantees are obligations to pay a third party beneficiary where
a customer fails to perform a non-financial contractual obligation. The guarantees are generally for a period
not exceeding ten years The credit risks associated with these products, as well as the operating risks, are
similar to those relating to other types of financial instruments. Cash margins available to us to reimburse
losses realised under guarantees amounted to ` 31.63 billion at March 31, 2012 and ` 24.39 billion at
March 31, 2011. Other property or security may also be available to us to cover losses under guarantees.

The table below sets forth, for the periods indicated, the principal components of guarantees.

` in billion, except percentages

Particulars

Financial guarantees
Performance guarantees
Total guarantees

1. Outstanding is net of cash margin.

At March 31, 2011 At March 31, 2012 % change

` 230.27
596.00
` 826.27

` 315.27
639.74
` 955.01

36.9%
7.3
15.6%

Claims against the Bank, not acknowledged as debts represents demands made in certain tax and legal
matters against the Bank in the normal course of business. In accordance with our accounting policy and
Accounting Standard 29, we have reviewed and classified these items as possible obligation based on legal
opinion/judicial precedents/assessment by the Bank. No provision in excess of provisions already made in
the financial statements is considered necessary.

We are obligated under a number of capital contracts. Capital contracts are job orders of a capital
nature, which have been committed. Estimated amounts of contracts remaining to be executed on
capital account in domestic operations aggregated to ` 4.33 billion at March 31, 2012 compared to
` 3.58 billion at March 31, 2011 primarily on account of new branches and office premises.

Capital resources
We actively manage our capital to meet regulatory norms and current and future business needs considering
the risks in our businesses, expectations of rating agencies, shareholders and investors and the available
options for raising capital. Our capital management framework is administered by the Finance Group and the
Risk Management Group under the supervision of the Board and the Risk Committee. The capital adequacy
position and assessment is reported to the Board and the Risk Committee periodically.

Regulatory capital
We are subject to the Basel II capital adequacy guidelines stipulated by RBI with effect from March 31, 2008.
RBI guidelines on Basel II require us to maintain a minimum capital to risk-weighted assets ratio of 9.0% and
a minimum Tier-1 capital adequacy ratio of 6.0% on an ongoing basis. Under Pillar 1 of the RBI guidelines on
Basel II, we follow the Standardised approach for measurement of credit and market risks and Basic Indicator
approach for measurement of operational risk.

Annual Report 2011-2012 61

Management’s Discussion & Analysis

RBI has also stipulated that banks shall maintain capital at higher of the minimum capital required as per
Basel II or 80% of the minimum capital required as per Basel I. At March 31, 2012, the prudential floor at
80% of the minimum capital requirement under Basel I was ` 332.50 billion and was lower than the minimum
capital requirement of ` 358.73 billion under Basel II. Hence, we have maintained capital adequacy at
March 31, 2012 as per the Basel II norms.

The following table sets forth, at the dates indicated, the capital adequacy ratios computed in accordance
with the RBI guidelines on Basel I and Basel II.

` in billion

Tier-I capital
Tier-II capital
Total capital
Credit Risk — Risk Weighted Assets (RWA)
Market Risk — RWA
Operational Risk — RWA
Total RWA
Total capital adequacy ratio
Tier-I capital adequacy ratio
Tier-II capital adequacy ratio

As per RBI
guidelines on Basel I

As per RBI
guidelines on Basel II

At March 31,
2011
` 463.99
231.00
694.99
3,389.35
552.84
—
` 3,942.19
17.6%
11.8%
5.8%

At March 31,
2012
` 512.16
238.56
750.72
4,054.73
563.31
—
` 4,618.04
16.3%
11.1%
5.2%

At March 31,
2011
` 449.75
217.50
667.25
2,909.79
255.52
249.67
` 3,414.98
19.5%
13.2%
6.3%

At March 31,
2012
` 505.18
232.95
738.13
3,468.74
268.66
248.46
` 3,985.86
18.5%
12.7%
5.8%

Movement in our capital funds and risk weighted assets from March 31, 2011 to March 31, 2012
(as per RBI guidelines on Basel II)

During fiscal 2012, capital funds increased by ` 70.88 billion primarily due to accretion to retained earnings,
incremental notional tax payable on special reserves of ` 2.11 billion, the issuance of lower Tier-II debt capital
of ` 16.00 billion and reduction of ` 20.60 billion in deduction from capital funds on account of securitisation
exposures.

Credit risk RWA increased by ` 558.95 billion from ` 2,909.79 billion at March 31, 2011 to ` 3,468.74 billion
at March 31, 2012 primarily due to increase of ` 409.48 billion in RWA for on-balance sheet credit exposures
and increase of ` 149.47 billion in RWA for off-balance sheet credit exposures.

Market risk RWA increased by ` 13.14 billion from ` 255.52 billion at March 31, 2011 to ` 268.66 billion at
March 31, 2012. The general market risk RWA increased by ` 15.35 billion (capital charge of ` 1.38 billion).

The operational risk RWA at March 31, 2012 was ` 248.46 billion (capital charge of ` 22.36 billion). The
operational risk capital charge is computed based on 15% of average of previous three financial years’ gross
income and is revised on an annual basis at June 30.

Internal assessment of capital
Our capital management framework includes a comprehensive internal capital adequacy assessment process
conducted annually, which determines the adequate level of capitalisation necessary to meet regulatory
norms and current and future business needs, including under stress scenarios. The internal capital adequacy
assessment process is formulated at both the standalone bank level and the consolidated group level. The
process encompasses capital planning for a certain time horizon, identification and measurement of material
risks and the relationship between risk and capital.

The capital management framework is complemented by the risk management framework, which includes a
comprehensive assessment of all material risks. Stress testing, which is a key aspect of the capital assessment
process and the risk management framework, provides an insight into the impact of extreme but plausible
scenarios on the risk profile and capital position. Based on our Board-approved stress testing framework, we
conduct stress tests on our various portfolios and assess the impact on our capital ratios and the adequacy of
our capital buffers for current and future periods. We periodically assess and refine our stress tests in an effort
to ensure that the stress scenarios capture material risks as well as reflect possible extreme market moves that
could arise as a result of market conditions. Internal capital adequacy assessment process at the consolidated
level integrates the business and capital plans and the stress testing results of the group entities.

Based on the internal capital adequacy assessment process, we determine our capital needs and the
optimum level of capital by considering the following in an integrated manner:

(cid:135)(cid:3) strategic focus, business plan and growth objectives;
(cid:135)(cid:3) regulatory capital requirements as per RBI guidelines;
(cid:135)(cid:3) assessment of material risks and impact of stress testing;
(cid:135)(cid:3) perception of credit rating agencies, shareholders and investors;
(cid:135)(cid:3) future strategy with regard to investments or divestments in subsidiaries; and
(cid:135)(cid:3) evaluation of options to raise capital from domestic and overseas markets, as permitted by RBI from time

to time.

We formulate our internal capital level targets based on the internal capital adequacy assessment process
and endeavour to maintain the capital adequacy level in accordance with the targeted levels at all times.

Basel III
In order to strengthen the resilience of the banking sector to potential future shocks, together with ensuring
adequate liquidity in the banking system, the Basel Committee on Banking Supervision (BCBS) issued the
Basel III proposals on December 17, 2009. Following a consultation phase on these proposals, the final
set of Basel III rules were issued on December 16, 2010. The Basel III rules on capital consist of measures
on improving the quality, consistency and transparency of capital, enhancing risk coverage, introducing a
supplementary leverage ratio, reducing pro-cyclicality and promoting countercyclical buffers, and addressing
systemic risk and interconnectedness. The Basel III rules on liquidity consist of a measure of short-term
liquidity coverage ratio aimed at building liquidity buffers to meet stress situations, and a measure of long-
term net stable funding ratio aimed at promoting longer term structural funding. BCBS has stipulated a
phased implementation of the Basel III framework between January 1, 2013 and January 1, 2019.

On May 2, 2012, RBI issued the final guidelines on the Basel III capital regulations. We continue to monitor
developments on the Basel III framework and believe that our current robust capital adequacy position,
adequate headroom currently available to raise hybrid/debt capital and demonstrated track record of access
to domestic and overseas markets for capital raising will enable us to adapt to the Basel III framework. RBI
issued the draft guidelines on Basel III liquidity standards on February 21, 2012 and solicited feedback from
the industry on these guidelines. The final guidelines on Basel III liquidity standards are awaited from RBI.

ASSET QUALITY AND COMPOSITION
Loan concentration
We follow a policy of portfolio diversification and evaluate our total financing in a particular sector in light
of our forecasts of growth and profitability for that sector. Between 2003 and 2006, the banking system as
a whole saw significant expansion of retail credit, with retail loans contributing for a major part of overall
systemic credit growth. In line with this, we experienced rapid growth in our retail loan portfolio and an
increase in the proportion of retail loans in our total loans. From fiscal 2008, the share of retail loans in

Annual Report 2011-2012 63

Management’s Discussion & Analysis

our total loan portfolio reduced as a result of moderation in systemic retail growth, our conscious strategy
of reducing the unsecured retail loan portfolio, higher level of repayments/prepayments from the existing
secured retail portfolio relative to incremental disbursements and the higher pace of growth in the non-retail
portfolio. In fiscal 2012, we saw an increase in retail lending volumes in secured retail products. In fiscal
2012, our total retail portfolio grew by 7.1% and our secured retail portfolio grew by 9.4%.

Our Credit Risk Management Group monitors all major sectors of the economy and specifically tracks sectors
in which we have loans outstanding. We seek to respond to any economic weakness in an industrial segment
by restricting new exposures to that segment and any growth in an industrial segment by increasing new
exposures to that segment, resulting in active portfolio management.

The following tables set forth, at the dates indicated, the composition of our gross advances (net of write-offs).
` in billion, except percentages
March 31, 2012

March 31, 2011

Retail finance1

Services – non-finance

Road, ports, telecom, urban development
and other infrastructure

Services – finance

Power

Iron/steel and iron/steel products

Mining

Crude petroleum/refining and
petrochemicals

Food and beverages

Construction

Electronics and engineering

Wholesale/retail trade

Metal & products (excl iron & steel)

Shipping

Cement

Chemical and fertilizers

Other industries2

Total

Total
advances
` 890.74

% of total
advances

39.7%

Total
advances
` 953.93

% of total
advances

36.4%

173.36

129.54

161.43

98.11

94.88

41.49

141.83

70.63

36.43

44.72

52.00

18.74

22.07

17.25

29.24

221.69
` 2,244.15

7.7

5.8

7.2

4.4

4.2

1.9

6.3

3.2

1.6

2.0

2.3

0.8

1.0

0.7

1.3

9.9

100.0%

194.81

181.96

156.41

141.24

122.31

84.03

70.76

67.79

57.97

56.61

50.06

48.19

42.39

39.78

34.98

7.4

7.0

6.0

5.4

4.7

3.2

2.7

2.6

2.2

1.9

1.8

1.6

1.5

1.3

317.54
` 2,620.76

12.1

100.0%

Includes home loans, automobile loans, commercial business loans, two wheeler loans, personal loans and
credit cards. Also includes dealer funding portfolio and developer financing portfolio.

2. Other industries primarily include automobiles, drugs and pharmaceuticals, FMCG, gems and jewellery,

manufacturing products excluding metal and textile etc.

The following table sets forth, at the dates indicated, the composition of our gross (net of write-offs)
outstanding retail finance portfolio.

` in billion, except percentages

March 31, 2011

March 31, 2012

Total retail
advances

` 541.26
85.81
152.86
40.31
48.51
21.99
` 890.74

% of
total retail
advances
60.8%
9.6
17.2
4.5
5.5
2.4
100.0%

Total retail
advances

` 579.83
94.71
180.70
29.52
45.96
23.21
` 953.93

% of
total retail
advances
60.8%
9.9
19.0
3.1
4.8
2.4
100.0%

Home loans1
Automobile loans
Commercial business
Personal loans
Credit cards
Loans against securities and others2
Total retail finance portfolio

1.
2.

Includes developer financing
Includes dealer financing portfolio.

Directed lending
RBI requires banks to lend to certain sectors of the economy. Such directed lending comprises priority sector
lending and export credit.

RBI guideline on priority sector lending requires the banks to lend 40.0% of their adjusted net bank credit
(ANBC), or credit equivalent amount of off balance sheet exposure (CEOBE), whichever is higher, to certain
activities carried out by the specified borrowers. The definition of ANBC includes certain investments and
is computed with reference to the respective amounts at March 31 of the previous year. Priority sector
includes lending to agricultural sector, food and agri-based industries, small enterprises/businesses, housing
finance up to certain limits and lending to borrowers belonging to weaker sections. Out of the 40.0%, banks
are required to lend a minimum of 18.0% of their ANBC to the agriculture sector and the balance to certain
specified sectors. The banks are also required to lend 10.0% of their ANBC, or COEBE, whichever is higher,
to the weaker sections.

While granting its approval for the amalgamation of ICICI Limited and ICICI Bank Limited, RBI stipulated
specific requirements for the Bank since the loans of erstwhile ICICI Limited (ICICI) transferred to us were
not subject to the priority sector lending requirement. With effect from fiscal 2013, the targets for ICICI Bank
would be at par with other banks i.e. 40.0%, 18.0% and 10.0% respectively of ANBC or CEOBE, whichever
is higher.

We are required to comply with the priority sector lending requirements at the last ‘reporting Friday’
of each fiscal year. The shortfall in the amount required to be lent to the priority sectors and weaker
sections may be required to be deposited with government sponsored Indian development banks
like the National Bank for Agriculture and Rural Development, the Small Industries Development Bank
of India and the National Housing Bank. These deposits have a maturity of up to seven years and carry
interest rates lower than market rates. At March 31, 2012, our total investment in such bonds was
` 181.03 billion.

At March 23, 2012, the last reporting Friday for fiscal 2012, our priority sector lending was ` 614.05 billion,
constituting about 95.0% of our requirements. At that date, the qualifying agriculture loans were ` 175.57
billion constituting about 75.0% of our requirements. Our advances to weaker sections were ` 42.18 billion
constituting about 39.0% of our requirements.

Annual Report 2011-2012 65

Management’s Discussion & Analysis

Classification of loans
We classify our assets as performing and non-performing in accordance with RBI guidelines. Under these
guidelines, an asset is classified as non-performing if any amount of interest or principal remains overdue
for more than 90 days, in respect of term loans. In respect of overdraft or cash credit, an asset is classified
as non-performing if the account remains out of order for a period of 90 days and in respect of bills, if the
account remains overdue for more than 90 days. In compliance with regulations governing the presentation
of financial information by banks, we report non-performing assets net of cumulative write-offs in our financial
statements.

RBI has separate guidelines for restructured loans. A fully secured standard asset can be restructured by
re-schedulement of principal repayments and/or the interest element, but must be separately disclosed as
a restructured asset. The diminution in the fair value of the loan, if any, measured in present value terms,
is either written off or a provision is made to the extent of the diminution involved. Similar guidelines apply
to sub-standard loans. The sub-standard or doubtful accounts which have been subject to restructuring,
whether in respect of principal installment or interest amount are eligible to be upgraded to the standard
category only after the specified period, i.e., a period of one year after the date when first payment of interest
or of principal, whichever is earlier, falls due, subject to satisfactory performance during the period.

The following table sets forth, at March 31, 2011 and March 31, 2012, information regarding the classification
of our gross customer assets (net of write-offs, interest suspense and derivatives income reversal).

Standard assets
Of which: Restructured assets
Non-performing assets
Of which: Sub-standard assets
Doubtful assets
Loss assets
Total customer assets1

March 31, 2011
` 2,608.30
20.64
101.14
17.92
74.00
9.22
` 2,709.44

` in billion
March 31, 2012
` 3,048.57
47.09
95.63
14.49
73.35
7.79
` 3,144.20

1. Customer assets include advances, lease receivables and credit substitutes like debentures and bonds but

exclude preference shares.

2. Restructured assets are upgraded to standard category on satisfactory payment performance for a minimum

period of 12 months as per restructuring terms.

The following table sets forth, at the dates indicated, information regarding our non-performing assets (NPAs).
` in billion, except percentages

Year ended

Gross NPA1

March 31, 2010
March 31, 2011
March 31, 2012

` 96.27
` 101.14
` 95.63

Net NPA Net customer
assets
` 2,091.22
` 2,628.16
` 3,059.84

` 39.01
` 24.58
` 18.94

% of net NPA to net
customer assets2

1.87%
0.94%
0.62%

1. Net of write-offs, interest suspense and derivatives income reversal.
2. Customer assets include advances and credit substitutes like debentures and bonds but exclude preference

shares.

At March 31, 2012, the gross NPAs (net of write-offs, interest suspense and derivatives income reversal) were
` 95.63 billion compared to ` 101.14 billion at March 31, 2011. Net NPAs were ` 18.94 billion at March 31,
2012 compared to ` 24.58 billion at March 31, 2011. The ratio of net NPAs to net customer assets decreased
from 0.94% at March 31, 2011 to 0.62% at March 31, 2012. During fiscal 2012, we wrote-off NPAs, including
retail NPAs, with an aggregate outstanding of ` 11.83 billion against ` 2.29 billion during fiscal 2011.

Our provision coverage ratio (i.e. total provisions made against NPAs as a percentage of gross NPAs)
at March 31, 2012 was 80.4%. At March 31, 2012, total general provision held against standard assets
was ` 14.80 billion compared to the general provision requirement as per the RBI guidelines of about
` 13.82 billion. The excess provision was not reversed in line with the RBI guidelines.

At March 31, 2012, the net non-performing loans in the retail portfolio were 0.8% of net retail loans as
compared with 1.5% at March 31, 2011. The decrease in the ratio was primarily on account of sharp decline
in accretion to retail NPAs and higher provisioning against retail loans. At March 31, 2012, the net non-
performing loans in the collateralised retail portfolio were 0.7% of the net collateralised retail loans and
net non-performing loans in the non-collateralised retail portfolio (including overdraft financing against
automobiles) were about 2.4% of net non-collateralised retail loans.

During fiscal 2012, we restructured loans aggregating ` 36.42 billion as compared to ` 13.66 billion during
fiscal 2011.

Our aggregate investments in security receipts issued by asset reconstruction companies were ` 18.32
billion at March 31, 2012 as compared to ` 28.31 billion at March 31, 2011.

Classification of non-performing assets by industry
The following table sets forth, at March 31, 2011 and March 31, 2012, the composition of gross non-
performing assets by industry sector.

` in billion, except percentages

March 31, 2011

March 31, 2012

Retail finance1
Food and beverages
Electronics and engineering
Wholesale/retail trade
Textiles
Gems and jewellery
Chemicals and fertilisers
Metal and metal products
Services – finance
Iron/steel and iron/steel products
Paper and paper products
Shipping
Services – non finance
Automobiles
Power
Other industries2
Total

Amount
` 66.35
2.88
0.68
3.85
2.25
1.76
2.05
1.30
2.30
0.17
0.46
0.06
0.38
0.55
0.18
15.92
` 101.14

%
65.6%
2.9
0.7
3.8
2.2
1.7
2.0
1.3
2.3
0.2
0.5
0.1
0.4
0.5
0.2
15.6
100.0%

Amount
` 59.79
2.64
2.38
2.12
1.84
1.75
1.56
1.11
1.07
0.95
0.79
0.45
0.39
0.18
0.09
18.52
` 95.63

%
62.5%
2.8
2.5
2.2
1.9
1.8
1.6
1.2
1.1
1.0
0.8
0.5
0.4
0.2
0.1
19.4
100.0%

Includes home loans, automobile loans, commercial business loans, two wheeler loans, personal loans and
credit cards. Also includes NPAs in dealer funding and developer finance portfolios.

2. Other industries primarily include construction, drugs and pharmaceuticals, construction, agriculture and allied
activities, FMCG, gems and jewellery, manufacturing products excluding metal, crude petroleum/refining and
petrochemicals, mining, cement, etc.

3. All amounts have been rounded off to the nearest ` 10.0 million.

Annual Report 2011-2012 67

Management’s Discussion & Analysis

Segment information
RBI in its guidelines on “segmental reporting” has stipulated specified business segments and their
definitions, for the purposes of public disclosures on business information for banks in India.

The standalone segmental report for the year ended March 31, 2012, based on the segments identified and
defined by RBI, has been presented as follows:
(cid:135)(cid:3) Retail Banking includes exposures of the Bank, which satisfy the four qualifying criteria of ‘regulatory retail

portfolio’ as stipulated by the RBI guidelines on Basel II framework.

(cid:135)(cid:3) Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, by
the Bank which are not included in the Retail Banking segment, as per the RBI guidelines for the Bank.

(cid:135)(cid:3) Treasury includes the entire investment portfolio of the Bank.
(cid:135)(cid:3) Other Banking includes hire purchase and leasing operations and other items not attributable to any

particular business segment of the Bank.

Framework for transfer pricing
All liabilities are transfer priced to a central treasury unit, which pools all funds and lends to the business
units at appropriate rates based on the relevant maturity of assets being funded after adjusting for regulatory
reserve requirement and directed lending requirements.

Retail banking segment
The profit before tax of the retail banking segment was ` 5.50 billion in fiscal 2012 compared to a loss of
` 5.14 billion in fiscal 2011, primarily due to decline in provisions for loan losses in the unsecured retail
portfolio and increase in net interest income.

Net interest income increased by 14.9% from ` 33.20 billion in fiscal 2011 to ` 38.15 billion in fiscal 2012
primarily due to increase in average CASA deposits of the retail banking segment, offset, in part, by increased
cost of savings account deposits effective May 3, 2011.

Non-interest income increased by 21.7% from ` 21.16 billion in fiscal 2011 to ` 25.76 billion in fiscal 2012,
primarily due to higher level of foreign exchange and third party referral fees and fees from the credit card
portfolio.

Provisions decreased by 86.4% from ` 13.81 billion in fiscal 2011 to ` 1.88 billion fiscal 2012, primarily due
to decline in provisions for loan losses in the unsecured retail portfolio. The credit losses in the retail asset
portfolio continued to be lower on account of sharp reduction in accretion to retail non-performing loans
since fiscal 2011.

Wholesale banking segment
Profit before tax of the wholesale banking segment increased from ` 49.00 billion in fiscal 2011 to
` 62.07 billion in fiscal 2012 primarily due to increase in net interest income offset, in part, by increase in
provisions.

Net interest income increased by 46.4% from ` 33.72 billion in fiscal 2011 to ` 49.37 billion in fiscal 2012
primarily driven by loan growth in the wholesale banking segment. Non-interest income increased by 2.9%
from ` 39.85 billion in fiscal 2011 to ` 41.01 billion for fiscal 2012, primarily due to the continued traction
in granular fee income streams like foreign exchange and transaction banking related fees from corporate
clients, offset, in part, by moderation in lending linked fee income. Provisions were higher primarily due to
the impact of restructuring of loans during the year and RBI’s increased provisioning requirements on non-
performing assets.

Treasury banking segment
Profit before tax of the treasury segment decreased from ` 22.01 billion in fiscal 2011 to ` 20.81 billion in
fiscal 2012 primarily due to increase in provisions against investments, offset, in part, by increase in non-

interest income. The non-interest income was higher primarily due to higher level of dividend income from
subsidiaries and reversal of MTM loss/realised gain on its government securities portfolio and other fixed
income positions, offset, in part, by higher level of losses on security receipts.

Other banking segment
The other banking segment incurred a loss of ` 0.35 billion in fiscal 2012 compared to profit of ` 1.74 billion
in fiscal 2011 primarily due to lower interest on income-tax refunds.

CONSOLIDATED FINANCIALS AS PER INDIAN GAAP
The consolidated profit after tax including the results of operations of our subsidiaries and other consolidating
entities increased from ` 60.93 billion in fiscal 2011 to ` 76.43 billion in fiscal 2012 mainly due to improved
financial performance of ICICI Bank, ICICI Prudential Life Insurance Company Limited and ICICI Securities
Primary Dealership Limited offset, in part, by decline in profits of certain subsidiaries and increase in net loss
of ICICI Lombard General Insurance Company Limited. The consolidated return on average equity increased
from 11.6% in fiscal 2011 to 13.0% in fiscal 2012.

Profit after tax of ICICI Prudential Life Insurance Company Limited increased from ` 8.08 billion in fiscal 2011
to ` 13.84 billion in fiscal 2012 due to higher profits from existing policies and lower upfront expenses due
to lower new business. Investment income increased from ` 5.95 billion in fiscal 2011 to ` 8.43 billion in
fiscal 2012 primarily due to increase in average non-linked assets under management. Operating expenses
decreased by 10.5% from ` 19.90 billion in fiscal 2011 to ` 17.81 billion in fiscal 2012. New business annual
premium equivalent (APE) decreased by 21.6% from ` 39.75 billion during fiscal 2011 to ` 31.18 billion during
fiscal 2012.

Net loss of ICICI Lombard General Insurance Company Limited (ICICI General) increased from ` 0.80 billion in
fiscal 2011 to ` 4.16 billion in fiscal 2012. In accordance with IRDA guidelines, ICICI General, together with all other
general insurance companies participated in the Indian Motor Third Party Insurance Pool (the Pool), administered
by the General Insurance Corporation of India (GIC) from April 1, 2007. The Pool covers reinsurance of third party
risks of commercial vehicles. Based on an analysis of the performance of the Pool by an independent consultant,
IRDA had instructed all general insurance companies to provide loss reserves at a provisional loss ratio of 153.0%
as against loss ratio of 122-126.0% (for each of the four years from fiscal 2008 to fiscal 2011) in the financial
results for fiscal 2011. Accordingly, net loss of ICICI General for fiscal 2011 included the impact of the additional
Pool losses of ` 2.72 billion. IRDA through its orders dated December 23, 2011, January 3, 2012 and March 22,
2012 had directed the dismantling of the Pool on a clean cut basis and advised to recognise Pool liabilities as per
the loss ratios estimated by GAD UK (GAD Estimates) for all underwriting years commencing from fiscal 2008
to fiscal 2012, with an option to recognise the same over a three year period. ICICI General has recognised the
additional liabilities of the Pool in the current year and therefore net loss of ICICI General for fiscal 2012 includes
the impact of the additional Pool losses of ` 6.85 billion.

ICICI Bank Canada has adopted IFRS for interim and annual financial statements relating to fiscal years
beginning on or after January 1, 2011 and accordingly financial results of fiscal 2012 are based on IFRS as
against financial results of fiscal 2011 which were based on Canadian GAAP. The primary difference in the
accounting treatment under IFRS vis-à-vis Canadian GAAP relates to securitisation of mortgages. Under
Canadian GAAP, the securitisation of mortgages was treated as a true sale and the mortgages securitised
were derecognised from the financial statements. Under IFRS, mortgages securitised are not eligible for
derecognition. Profit after tax of ICICI Bank Canada increased from ` 1.45 billion (CAD 32.4 million) in fiscal
2011 to ` 1.66 billion (CAD 34.4 million) in fiscal 2012 primarily due to increase in net interest income on
account of increase in average volume of interest-earning assets, MTM gains on derivatives and investments
in fiscal 2012 as compared to MTM losses in fiscal 2011, offset, in part, by higher provisions on loans, loss
realised on sale of investments in fiscal 2012 as compared to gains realised in fiscal 2011 and gains on
securitisation of insured mortgages in fiscal 2011.

Profit after tax of ICICI Bank UK PLC decreased from ` 1.67 billion (USD 36.6 million) in fiscal 2011 to ` 1.22
billion (USD 25.4 million) in fiscal 2012 primarily due to decrease in net interest income on account of decline

Annual Report 2011-2012 69

Management’s Discussion & Analysis

in average volume of interest-earning assets, decrease in fee income, MTM losses on derivatives in fiscal
2012 as compared to MTM gains in fiscal 2011 and loss realised on sale of investments in fiscal 2012 as
compared to gains realised in fiscal 2011, offset, in part, by lower provisions.

Profit after tax of ICICI Bank Eurasia Limited Liability Company remained at similar levels at ` 0.21 billion in
fiscal 2011 and fiscal 2012.

Profit after tax of ICICI Securities Primary Dealership Limited increased from ` 0.53 billion in fiscal 2011
to ` 0.86 billion in fiscal 2012 due to increase in trading gains despite an increase in yield on 10 year
government securities during fiscal 2012 offset, in part, by decrease in net interest income on account of
higher funding costs.

Profit after tax of ICICI Securities Limited decreased from ` 1.13 billion in fiscal 2011 to ` 0.77 billion in fiscal
2012 primarily due to decrease in overall cash turnover in the equity markets and reduced opportunities in
investment banking business.

Profit after tax of ICICI Home Finance Company Limited increased from ` 2.33 billion in fiscal 2011 to ` 2.60
billion in fiscal 2012 primarily due to increase in net interest income, offset, in part, by higher provisions on
loans.

Profit after tax of ICICI Prudential Asset Management Company increased from ` 0.72 billion in fiscal 2011 to
` 0.88 billion in fiscal 2012 primarily due to lower operating and administrative expenses.

Profit after tax of ICICI Venture Funds Management Company Limited decreased from ` 0.74 billion in fiscal
2011 to ` 0.68 billion in fiscal 2012 primarily due to decrease in management fees and increase in staff cost,
offset, in part, by increase in distribution of income from venture capital funds in fiscal 2012.

Consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from
` 5,337.68 billion at March 31, 2011 to ` 6,041.91 billion at March 31, 2012. Consolidated advances of
the Bank and its subsidiaries increased from ` 2,560.19 billion at March 31, 2011 to ` 2,921.25 billion at
March 31, 2012.

The following table sets forth, for the periods indicated, the profit/(loss) of our principal subsidiaries.

Company

ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Bank Canada
ICICI Bank UK PLC
ICICI Bank Eurasia Limited Liability Company
ICICI Securities Primary Dealership Limited
ICICI Securities Limited
ICICI Home Finance Company Limited
ICICI Prudential Asset Management Company Limited
ICICI Venture Funds Management Company Limited

Fiscal 2011
` 8.08
(0.80)
1.45
1.67
0.21
0.53
1.13
2.33
0.72
` 0.74

` in billion
Fiscal 2012
` 13.84
(4.16)
1.66
1.22
0.21
0.86
0.77
2.60
0.88
` 0.68

Key financial indicators: last ten years

Profit After Tax

` in billion

Dividend Per Share

64.65

51.51

41.58

40.25

37.58

31.10

25.40

16.37 20.05

12.06

2003

2004 2005 2006 2007 2008 2009 2010 2011 2012 FY

18
16
14
12
10
8
6
4
2
0

16.50

14.00

12.00

11.00

8.50

10.00

8.50

7.50

2003

2004 2005 2006 2007 2008 2009 2010 2011 2012 FY

Profit After Tax

Dividend Per Share

For fiscal 2012, represents proposed dividend.

Deposits

` in billion

Advances

` in billion

3000

2500

2000

1500

1000

500

2,444.31

2,305.10

2,183.48

2555.00

2,256.02

2,020.17

1,650.63

998.19

681.09

481.69

2003

2004 2005 2006 2007 2008 2009 2010 2011 2012 FY

3000

2500

2000

1500

1000

500

2256.16 2183.11

1958.66

2537.28

2163.66

1812.06

1461.63

626.48

914.05

532.79

2003

2004 2005 2006 2007 2008 2009 2010 2011 2012 FY

Deposits

Advances

At year–end fiscal

` in billion, except per share data

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

14.45

21.85

29.32

39.07

56.37

73.04

83.67

81.14

90.17

107.34

19.68

26.66

27.55

32.49

34.84

39.39

33.76

36.14

45.27

56.11

19.65

26.44

27.33

32.15

34.64

39.15

33.70

35.99

45.06

55.95

Net interest
income

Earnings per
share (Basic)

Earnings per
share (Diluted)

Total assets

1,068.12 1,252.29 1,676.59 2,513.89 3,446.58 3,997.95 3,793.01 3,634.00 4,062.34 4,736.47

Equity capital &
reserves

Total capital
adequacy ratio

69.33

80.10

125.50

222.06

243.13

464.71 495.33

516.18

550.91

604.05

11.1% 10.4% 11.8% 13.4% 11.7% 14.0%1

15.5%1

19.4%1

19.5%1

18.5%1

1. Total capital adequacy ratio has been calculated as per Basel II framework.

Annual Report 2011-2012 71

Section 217

Statement pursuant to Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975(forming
part of the Directors` Report for the year ended March 31, 2012) in respect of employees of ICICI Bank Limited

Name,Qualifications and Age (in years)

Employees posted in India

Agarwal Anuj, MBA (44)
Agarwal Bimal, CA, CS (41)

Agarwal Vikas, B.Com, CA, (41)

Agrawal Mayank, BE, PGDM,(41)

Anil Kumar P R, B.Tech, MFM (42)

Arora Atul, DAE (44)

Arora Rajiv, BE, MBA, (45)*

Ashish Kumar, MA, MMS, (40)

Asokraj Thanjavur, B.Sc, M.Sc, B.L. (54)*

Athreya Ranganath,B.Sc.BGL,ACS (46)

Atrishi Naveen, B.Tech, MBA (42)

Badami Suresh, B.Sc., PGDM, (40)

Balasubramanian Ganesh, B.Com, M.Com (44)

Banerjee Abonty (Ms.), B.Sc., MBA, (40)

Banerjee Anindya, B.Com, CA, (36)

Batra Sandeep,B.Com,CA, CS, (46)

Beniwal Ravinder, B.Sc, MBA (42)

Bhageria Anand, B.Tech, PGDM (39)

Bhargava Anuj, B.Com, CA,(36)

Bhaskar Bijith, B.Tech, PGDIM (39)

Bhat Sham, B.Sc., PGDM, (39)*

Bhatia Piyush, BE, MBA,(40)

Bhattacharjee Sriraj, BE, PGDM (37)

Bhattacharyya Nandini (Ms.), B.Sc, MBA (40)

Bhobe Prathit, B.Com,MMS,(41)

Chandak Om Prakash, CA, CS (37)

Chandok Vijay, B.Tech,MMS, (44)

Chattanathan D. , B.Sc, PGDPRJ (48)*

Chatterjee Sreekanta, B.Tech, PGDBM (34)

Chaturvedi Akshay, B.Sc, MBA (35)

Chaturvedi Bhupendra, B.Sc, PGDRM (39)

Chaudhuri Ripujit, BE, MMS, (43)

Chopra Akash, B.Com, CA (40)*

Choudhary Prabhakar, B.Sc, MSF (41)

Chougule Sanjay ( Dr.), BE,MMS,LLB,Ph.D, (48)

Daga Shekhar, B.Com, CA (35)*

Daruwala Zarin (Ms.), B.Com,CA,CS, (47)

Daryanani Mehul, BPHARM, MMS (35)

Desai Aakash Udayan, B.Com, MMS (33)

Deshpande Charudatta, B.Pharma, (56)

Dhamodaran S., B.Sc., CAIIB, (57)

Dhar Vineet, B.Com, PGDPMIR (36)

Dhawan Neeraj, B.Com, CS, CA, ICWAI (42)*

Ganesh R , B.Com, CS, ICWAI (43)

Ganguli Sujit B.Sc., PGDM, (40)

Goel Ashish, B.Tech, PGDM (39)

Govindan Krishnan, B.Sc, PGDM (44)

Gupta Ajay, B.Com, CA, (45)

Gupta Bhavesh, B.Com, MBA (39)

Gupta Ravinder, B.Tech (41)

Gupta Subhro, B.Sc, M.Sc, MBA (52)

Desig./
Nature of
Duties**

Remuneration
Receieved `

Gross
`

Net
`

Expe-
rience
(in
years)

Date of
Commence-
ment of
Employ-
ment

Last employment

JGM
DGM

JGM

DGM

JGM

SGM

JGM
GMJCS

DGM

SGM

DGM

GCOCS

DGM

JGM

DGM

AGM

JGM

AGM

6,073,224
6,166,536

7,517,172

11,170,979

6,233,212

8,210,373

2,820,573

12,132,488

4,329,942

10,127,819

6,051,181

11,158,710

7,509,062

9,052,586

9,920,814

13,892,194

7,033,702

6,411,624

9,712,838

6,615,291

3,919,678

8,513,382

6,124,161

7,716,754

10,491,460

6,356,843

4,670,484
4,625,869

5,551,329

8,265,014

4,705,537

6,071,250

2,020,289

9,223,173

3,304,947

7,493,002

4,540,783

8,198,811

5,632,621

6,627,343

7,231,630

9,927,002

5,253,392

4,772,378

7,532,724

4,943,023

2,906,157

6,305,317

4,604,959

5,706,583

7,673,746

4,808,451

PRESIDENT

22,555,909

17,035,392

JGM

DGM

JGM

DGM

SGM

DGM

7,398,536

6,047,346

6,131,604

7,018,937

10,350,108

1,095,763

6,011,671

12,818,892

2,745,604

5,603,690

4,422,578

4,664,071

5,441,419

7,692,780

958,417

4,553,388

9,765,136

2,070,417

PRESIDENT

21,012,130

15,527,387

DGM

SGM

JGM

DGM

JGM

DGM

SGM

JGM

DGM

JGM

6,200,335

6,385,875

9,448,177

4,563,192

4,823,828

7,080,833

14,284,308

10,217,779

7,452,490

10,322,800

6,587,350

11,735,528

6,427,056

6,428,888

11,007,010

8,251,586

6,695,481

6,143,037

5,619,493

7,547,080

5,015,382

8,538,838

4,783,099

5,069,284

8,207,719

6,109,700

4,950,720

4,952,714

21
16

20-May-99 Manager Resources (North), HDFC Limited

16-Jul-07 Team Leader, CRISIL Limited

15-Dec-98 Analyst, Anand Rathi Group

10-Apr-95 Management Trainee, IPCL

22-Jan-10 Head of Micro Finance, Barclays Bank Plc

24-Mar-05 Country Head, Apna Loan (I) Pvt.Limited

23-Apr-93 Project Officer, IFCI Limited

11-Oct-99 Regional Manager,Ceat Financial Services Limited

11-Oct-06 Senior Vice President, Unit Trust of India

1-Apr-09 Executive Vice President - Compliance, Legal & Company Secretary -

ICICI Prudential Asset Management Company Limited

19-Dec-05 Assistant General Manager, IFCI Limited

16-Oct-02 Head Region-Business Development, Max Ateev Limited

19-Dec-95 Trainee Officer, State Bank of India

4-Nov-99 Associate Research Director, ORG-MARG Research Limited

7-Oct-98 -

8-Nov-06 Executive Vice President and CFO,ICICI Prudential Life Insurance Co. Limited

29-Mar-03 Manager , Max Newyork Life Insurance Co. Limited

21-Sep-00 Associate, CRISIL Limited

15-Oct-98 Vice President, ICICI Securities Limited

21-Jul-03 Manager, Sales Planning & Distribution, Ford India

2-Sep-02 Senior Manager, IDBI Bank

1-Jun-95 -

24-May-10 Fund Manager, Axis Mutual Fund

17-Apr-07 Senior Manager, American Express Bank

16-Jul-10 Head of Commercial Banking, Global Consumer Group, Citibank

8-Dec-05 Manager, Industrial Development Bank Of India

31-May-93 Production Executive,ITC Group - VST Industries

21-Apr-11 CEO, Spandana Spoorthy Financial Services Limited

27-Sep-04 Associate Consultant, Infosys Technologies Limited

20-Nov-01 Manager, R.R. Financial Services

27-May-04 Manager, AC Nielsen ORG-MARG Research Services Pvt. Limited

5-Sep-01 Manager, Broadbank Solutions Pvt. Limited

1-Feb-12 Director, Citi Bank

29-Oct-04 Manager, Stock Holding Corporation of India Limited

1-Jun-87 Junior Engineer,RCF Limited

4-Dec-00 Manager, Unit Trust of India

21-Jun-89 -

16-Sep-00 Management Trainee, Erudite Capital

1-Jun-01 -

21-Jul-05 Senior General Manager, Mahindra & Mahindra

4-Apr-94 Officer MII , State Bank of India

15-Mar-00 Officer, HSBC Bank

15-Apr-11 Executive Vice President, HDFC Bank

31-Jan-00 Officer, SBI Commercial & International

01-Sep-10 Senior Vice President & Head Marketing , ICICI Prudential Life Insurance Co. Limited

1-Oct-04 Trade Marketing Manager, Marico Industries Limited

2-Jan-04 Regional Manager, Asian Paints (I) Limited

25-Nov-91 Articled Clerk, A.F.Ferguson Co.

19-May-03 Assistant Vice President, TransAmerica Apple Distribution Finance Pvt. Limited

7-Sep-06 Vice President, Morgan Stanley

1-Jun-06 Assistant Vice President, IDBI Bank

Name,Qualifications and Age (in years)

Employees posted in India
Guruprasad Nirupama (Ms.), B.Tech, PGDM (40)

Isaac Robi, BA,LLB,(36)

Isser Utpal, BA, PGDRM,(37)

Jain Manish B.Com, CA (32)

Jain Mukesh, B.Com, CAIIB, PGDBM, DBANKM, (52)

Jain Nipun, B.Com, MBA (40)

Jain Prashant, B.Com, CA (36)

Jain Vinay B.Com, CA, DSE (34)

Jayarao K. M., BE, (56)

Jha Rakesh, BE, PGDM, (40)

Jogani Vandana Suresh (Ms.), BE, MMS, (42)

Johnson Shashi, B.Sc, PGDRM (43)

Joshi Rahul, B.Sc, MBA (42)

Juneja Maninder, BE, PGDM, (46)

Kamak Bhuvanendran, B.Tech, PGCIGM (44)

Kamani Anirudh, B.Com, CA, (42)

Kannan N.S, BE,PGDM,CFA(46) +

Kapoor Aanchal (Ms.), B.Sc, PGDM (38)

Kashive Ashish, B.Tech, MSF (40)

Kaul Anil, BSc,MBA,(46)

Khandelwal Rajendra, B.Com, CA, CS, (39)

Kikani Kalpesh, BE, MBA, CFA,(39)*

Kochhar Chanda (Ms.), BA,MMS,ICWAI, (50)+

Kodaganti Leelanand, B.Sc., CCCL,(47)

Konda Vasudeva, B.Tech., PGDM,(38)

Krishna Som, M.Sc, MBA (36)

Kumar Rajesh, B.Sc (42)

Kumar Shilpa, (Ms.),B.Com, PGDM, (45)

Kumar Sushant, MA, CAIIB, (51)*

Lal Rohit , B.Tech, PGP (41)*

Limaye Niranjan , BE, PGDM,(42)

Madhavan Anish, B.Com, CA,(40)

Mantri Sanjeev, B.Com, CA, (41)

Marshall Vispi, B.Com, MSF (47)

Mattagajasingh Soumendra, BA, MA(IR&PM),(40)

Mehrotra Sumit, B.Com (41)*

Menon Jayan, B.Com, CA (44)*

Mhatre Sangeeta ( Ms.), B.Com,CA, (48)*

Mishra Lok, BA, CAIIB, MBA, (42)

Misra Manish, B.Tech, PGDM, (41)

Mitra Ronita (Ms.),B.Com.MMS,(42)

Mittal Ajay, B.Com, ICWAI, CA, PGDTFM,(41)

Modi Ashish, B.Com, MBA (36)

Mulki Mani, B.Sc, MMM (47)*

Mulla Parvez, BE, PGDM, (41)

Nachiappan V., B.Sc., CAIIB, PGDBA, (58)*

Nagpal Vikas , DEE, PGDBA,(38)

Nair Rajesh, B.Com, PGDMIB (38)

Narayanan N.R., BE, PGDM, (49)

Nayak Girish, B.Tech., PGDM, (41)

Padhye Manish, B.Com, CA (31)

Pai Anita (Ms.),B.Com,MBA(44)

Pal Dilip Kumar, B.Com, CA (57)

Palta Amit, BE, PGDBM,(40)

Desig./
Nature of
Duties**

Remuneration
Receieved `

Gross
`

Net
`

Expe-
rience
(in
years)

Date of
Commence-
ment of
Employ-
ment

Last employment

JGM

AGM

SGM

DGM

AGM

SGM

DYCFO

JGM

SGM

JGM

EDCFO

JGM

DGM

JGM

SGM

MDCEO

DGM

JGM

DGM

AGM

SGM

JGM

SGM

DGM

JGM

DGM

JGM

SGM

JGM

DGM

JGM

DGM

JGM

SGM

AGM

SGM

JGM

7,912,687

8,922,780

8,295,523

6,860,398

5,853,121

6,676,595

6,124,476

5,184,218

14,334,288

10,629,934

6,253,685

6,184,301

6,836,219

4,643,077

4,843,560

5,083,034

15,334,107

11,704,943

15,230,212

11,042,576

8,882,331

7,223,938

6,924,632

6,555,136

5,345,147

5,252,763

16,219,663

11,986,571

7,536,898

9,106,033

5,944,383

6,858,838

24,962,396

18,348,397

6,808,954

6,349,674

10,892,994

7,947,618

5,169,545

5,047,077

4,850,237

8,103,339

6,003,098

3,778,328

37,741,151

27,770,588

8,143,000

9,266,528

7,198,717

6,662,222

5,978,053

6,870,080

5,551,450

4,915,286

15,374,629

11,171,321

4,850,078

5,831,431

9,234,665

8,413,621

11,787,737

7,709,504

9,079,992

3,364,861

4,867,326

11,398,163

10,215,079

8,465,028

7,767,058

7,859,978

6,119,199

5,294,144

9,521,020

7,665,185

8,239,947

8,204,289

11,633,646

11,768,687

6,732,521

3,706,576

4,421,773

6,906,252

6,320,576

8,733,853

6,013,028

6,726,863

2,549,662

3,749,629

8,390,188

7,609,750

6,227,788

5,731,505

5,812,779

4,823,952

4,039,155

6,990,559

5,787,884

6,041,235

6,117,966

8,561,117

8,777,844

4,959,359

15,063,732

10,907,337

6,304,202

10,795,257

4,613,290

7,920,501

17-Jun-10 Consultant, ICICI Securities Limited

3-Sep-07 Resident Partner, Kochhar & Co.

1-Oct-01 Senior Research Executive, Indian Mark Research Bureau

17-Aug-01 -

29-Mar-94 Officer, Canara Bank

19-May-00 Branch Manager, GMAC-TCFC Finance

23-Mar-00 Consultant, Aneja Associates

24-Apr-00 -

22-Mar-82 Junior Executive,BHEL,Hyderabad

3-Jun-96 -

7-Mar-05 Assistant Vice President, GE Countrywide Consumer Finance

13-Jun-02 Trading Manager, Cargill India Limited

15-Mar-99 In Charge -Treasury, Meghraj Financial Services(I) Pvt Limited

5-Apr-99 Head Agency Business,DGP Windsor

1-Jul-08 Director, American Express

1-Feb-05 Manager Supply Chain, Becton Dickinson India Limited

1-May-09 Executive Director, ICICI Prudential Life Insurance Co. Limited

15-Dec-03 Senior Manager, IDBI Bank

28-Sep-07 Head-Fuels Practice, CRISIL

02-Aug-10 Head of Brokerage, Bank of Muscat

4-Oct-95 -

1-Jun-95 -

17-Apr-84 -

26-Aug-04 Chief Manager, Global Trust Bank

19-Apr-99 Senior Systems Analyst, Infosys Technologies

1-Nov-00 Partner, Mradang Cinema

17-Aug-04 Manager, State Bank of Saurashtra

1-Jun-89 -

18-Jul-94 Deputy Manager, United Bank of India

3-Apr-06 Vice President, Citi Bank

1-Jun-95 Graduate Engineering Trainee,Larson & Toubro Limited

20-Aug-01 Manager, Orix Auto Finance(I) Limited

1-Oct-03 Deputy Head - Corporate Banking,BNP Paribas

1-Sep-06 Head - Liabilities, Standard Chartered Bank

23-Sep-02 Senior Officer, Hindustan Petroleum Corporation

2-Dec-99 Area Manager - Strategic, GE Capital - TFS

3-Mar-92 Senior Officer, Tata SSL Limited

12-Jun-89 Junior Officer, Price Waterhouse

22-Oct-96 Assistant Manager, Oriental Bank of Commerce

19-Jun-02 Vice President, Oyster Solutions

19-Aug-08 Marketing & Strategy Head, Castrol India Limited

17-Jan-07 Vice President, ING Vysya Bank

1-Dec-99 Senior Marketing Executive, Neptune Equipment Pvt. Limited

18-Jul-11 Chief Information Officer, Pidilite Industries Limited

16-Aug-00 Relationship Manager, ANZ Grindlays Bank

1-May-00 General Manager,Bank of Madura Limited

24-Sep-04 Emerson Network Power India Pvt Limited

10-Jan-00 Deputy Manager, Export Import Bank of India

17-Apr-00 Regional Manager, Eicher Motors Limited

2-May-94 Software Engineer, Mastek Limited

27-Aug-01 -

1-Apr-10 Executive Vice Pressident, ICICI Prudential Life Insurance Co. Limited

2-Mar-81 Probationary Officer, State Bank of India

7-May-08 Head Sales, ICICI Prudential Life Insurance Co. Limited

Annual Report 2011-2012 73

Name,Qualifications and Age (in years)

Employees posted in India
Parmar Anilkumar, BBA, CAIIB,(40)

Prabhune Sunil, B.Com, PGDM,(36)

Prasad Jayant, BE, PGDM,(38)

Rahul Vohra, B.Com,MBA,(49)

Ramachandran G (Dr.), M.Sc., M.Phil., Ph.D., INS, (50)

Ramakrishnan Murali, B.Tech,PGDM, (49)*

Raman Arun, B.Tech, PGDM (41)

Ramasubramanian Krishnakumar B.Tech, PGDM(39)

Ramesh A.V., B.Tech, M.Tech. (49)

Ramkumar Krishnaswamy, B.Sc.,PGDPM & IR, (50) +

Ranganathan Sridhar, B.Sc.,(39)

Rao Pramod, BA,LLB, (38)

Rastogi Yogesh, BE, PGPM, (43)

Roy Kusal, B.Tech.PGDM,(41)

Roy Sudipta, B.Tech, PGDBM (40)

Rupani Viral, B.Tech, MBA (43)

Sabharwal Rajiv,B.Tech,PGDM(46) +

Saha Anup, B.Tech., PGPM, (41)

Saha Avijit, BE, PGDM, (43)

Salhotra Rohit, B.Tech, PGDM (45)

Sanghai Anubhuti (Ms.), BA, CA,(38)

Sanghai Sumit B.Com, CS, CA (36)

Sanyal Goutam, B.Sc., M.Sc., Ph.D.(48)

Saraf Ajay, B.Com, ICWAI,ACA, (42)*

Saravade Nandkumar, BE, M.Tech. (50)*

Sarpal Akashdeep, B.Tech, MMS (40)*

Satnaliwala Rupesh, B.Com, CA (37)

Satyaprasad M V, B.Com, M.Com (54)*

Saxena Sharad, B.Tech (49)

Sethi Amit, BE, MBA,(39)

Sethi Sandeep, B.Tech (42)

Shah Anand , B.Com, CA,(34)

Sharma Arun Kumar, B.Com, CA, MBA (39)

Sharma Bharat, B.Tech, MBA (41)

Sharma Sudershan, B.Com, CS, CA, (42)

Shetty Supritha (Ms.), B.Com, CA, (46)

Singh Sanjeev, B.Sc, MBA (39)#

Singh Saurabh, MA, MMS, (45)

Singhal Ashish, B.Tech, PGDBA (40)

Singhal Raghav, BA, PGDM, (37)

Singhvi Sanjay, B.Sc., CA, (42)

Singhvi Vikas B.Com, MBA (39)

Sreekumar Thallam, B.Com (44)

Srinivas G., B.Tech, PGDM, (44)

Srirang T.K., BE, MBA, (40)

Srivastava Rishi, BA, MA, PGDBA, (39)

Subramanian Gopalan, B.Sc, MBA (54)

Suresh P., BE, PGDM, (40)

Suvarna Rakesh, B.Com, MMS (39)

Tandon Vikas, B.Com (44)*

Tripathy Subhendu, B.Tech, PGDM (41)

Trivedi Praveen, B.Com, CA,(39)

Tumdi Rajeev, B.Com (46)

Umapathy Avinash, BALLB (34)

Vajjula Sravan Kumar, BE, PGDM, (31)

Varma Mohit B.Com, PGDBM (36)

Verma Anupam, B.Tech, PGDBM (37)

Verma Prashant, B.Com, MPM,(37)

Vohra Pravir, CAIIB, MA, (57)

Vora Hemant,BE,MS (44)

Desig./
Nature of
Duties**

Remuneration
Receieved `

Gross
`

Net
`

Expe-
rience
(in
years)

Date of
Commence-
ment of
Employ-
ment

Last employment

DGM

JGM

SGM

DGM

JGM

DGM

SGM

JGM

DGM

JGM

DGM

JGM

SGM

JGM

DGM

JGM

DGM

JGM

DGM

SGM

JGM

SGM

DGM

JGM

AGM

DGM

AGM

DGM

JGM

PRESIDENT
GM

8,147,063

8,440,243

8,274,070

11,593,385

9,073,880

10,399,664

7,652,725

8,409,617

7,853,626

6,058,386

6,220,064

6,175,547

8,496,893

6,660,220

7,616,436

5,612,360

6,338,826

5,849,281

25,373,146

18,750,976

6,921,571

5,208,145

15,141,214

11,211,436

9,953,968

10,501,091

7,100,118

6,937,687

7,374,814

7,686,581

5,276,254

5,237,839

23,220,618

17,164,827

9,960,223

10,167,640

7,445,486

8,751,630

7,526,266

8,949,552

3,756,584

3,552,520

2,834,632

7,009,713

6,379,640

7,170,665

8,818,745

8,444,131

8,364,702

6,877,094

8,055,672

7,301,228

7,791,647

5,932,931

6,457,547

5,640,115

6,817,527

2,814,202

2,747,722

2,004,688

5,301,887

4,724,337

5,471,597

6,479,878

6,132,021

6,180,964

5,402,468

6,084,530

13,805,407

10,026,681

10,757,564

7,368,572

12,608,162

7,742,055

9,102,517

9,984,192

7,377,024

7,329,921

13,460,476

12,567,135

10,561,410

6,588,031

10,257,101

7,264,143

5,762,884

7,923,475

8,156,043

6,527,580

6,743,442

7,722,973

6,210,606

8,341,081

7,895,263

6,871,641

9,201,726

5,726,012

6,929,937

7,786,230

5,545,232

5,704,339

9,911,947

9,105,388

7,791,754

4,876,734

7,643,994

5,476,110

4,446,611

5,908,733

6,141,510

4,824,870

5,064,272

5,640,338

4,796,500

6,986,982

8,108,887

6,149,375

24,712,956

18,588,229

8,102,982

6,002,375

18-Jul-05 Senior Manager, Union Bank of India

4-Jul-05 Senior Manager - HR, Novartis

4-May-98 -

03-Jan-11 Executive Director, Societe Generale Bank

24-Dec-01 Vice President-Mutual Fund, CRISIL

2-Aug-99 GE Capital TFS Limited

20-Jul-05 General Manager, Satyam Limited

3-Jun-96 -

30-Apr-01 Manager Systems, State Bank of India

2-Jul-01 General Manager (HR), ICI India Limited

18-Dec-00 Assistant Manager, Bharati Mobile Limited

1-Aug-96 Mulla & Mulla

14-May-93 -

23-Jul-10 INC Value Advisors

9-Sep-10 Senior Business Leader, Visa Inc

4-Jun-03 Regional Manager, Standard Chartered Bank

1-Apr-10 Executive Director, Sequoia Capital India Advisors Pvt. Limited

21-Jun-03 Assistant Vice President,GE Capital

7-Aug-06 Business Manager,ICI Paints

21-Nov-06 Sales Marketing, Bharti Airtel Limited

30-Mar-99 Executive, S.R.Batliboi & Co.

24-Apr-00 -

21-Nov-05 Consultant, I-flex Solutions Limited

1-Jun-02 American Express Bank Limited

7-May-08 Director, Nasscom

3-Nov-08 Fund Manager, HDFC AMC Limited

31-Dec-99 Finance Executive, CESC Limited

26-Dec-01 Senior Vice President & Relationship Manager, Credit Lyonnais Bank

Limited

12-Sep-05 Chief Manager , IT, Konkan Railway Corporaion Limited

1-Jun-98 Engineer, Essar Steel Limited

26-Apr-10 General Manager, Videocon Industries Limited

25-Sep-06 Manager, ITC Limited

23-Feb-10 Vice President, GE Capital Services India

22-May-02 Regional Manager, TransAmerica Apple Distribution Finance Pvt. Limited

1-Jul-99 Manager, IDBI Limited

26-Sep-03 Manager, BNP Paribas

15-Mar-00 CEAT Financial Services Limited

31-Dec-99 Manager HRD,Tata Liebert

13-May-05 Head-Loyalty, Amex Bank

10-Jan-00 Product Manager, Godrej GE Appliances

15-Mar-00 Group Manager, Birla Global Finanance Limited

21-Aug-96 -

18-Feb-99 Manager, GE Countrywide

8-Jun-93 Management Trainee, IFCI Limited

29-Oct-01 Area HR Manager, Coco-Cola India Limited

19-Apr-10 Arvind Brands

2-Sep-94 Officer, Canara Bank

3-Jun-94 -

15-Feb-99 Assistant Manager Projects, Ajcon Capital Markets Limited

2-Jul-07 Head of Compliance, Citi Bank

7-Jan-02 Business Analyst, MPHASIS BFL Limited

3-Dec-01 Assistant Manager, IDBI Bank Limited

1-Nov-85 -

12-Oct-07 Senior Associate, Trilegal Law Firm

5-May-03 -

1-May-00 -

9-Aug-99 Executive Trainee, Asian Paints

22-Aug-02 Manager - HR, ITC Limited

28-Jan-00 Vice President, Times Bank

1-Feb-06 Associate Director, KPMG

Name,Qualifications and Age (in years)

Desig./
Nature of
Duties**

Remuneration
Receieved `

Gross
`

Net
`

Expe-
rience
(in
years)

Date of
Commence-
ment of
Employ-
ment

Last employment

Employees posted at branches and offices abroad
Bafna Ashish, BSc., MBA,(39)

Chakravarti Arnab, B.Com, CA, CTM, PGDTFM, FRM, PGDASU,(33)

Ganjoo Pankaj,B.Sc., CAIIB, (48)

Guliani Harpreet, B.Com, DBF, PGDBA,(36)

Gupta Rakhee (Ms.),BA, MIB, (35)

Han Linda (Ms), MBA (42)

Hui Han Chew (Ms.), LLB(Hons)(58)

Hussain Omer,B.Sc, (46)

Iyer Bagawatiswar Krishna,B.Sc., PGDIM, (57)

Joshi Ranjeet, B.Com, PGD in Management Studies, PGP in Managment (36)

Kumar Manish, B.Com, CA,(40)

Kumar Sachin, B.Com,CA, ICWAI (34)

Malhotra Anurag, B.Com, MBA (37)

Naresh Babu D. R. , B.Com (37)

Neeraj Pandey, B.Sc (37)

Prashad Vikas, B.Com, PGD in Planning and Project Management (37)

Ramesh G.V.S., B.Com, CA, (48)

Raymond Tan Soon Guan, BBA (49)

Shankaran Murugan,B.Sc, MBA, PGD in Computer Application (45)*

Sharma Vikash,B.Com, ICWAI, CA, CTM, (38)

Shreenivas Subramaniam,PGDBA, ICWAI, CS (37)

Wong Lai Chun (Ms.),Bachelor of Accountancy, (52)

AGM

DGM

AGM

DGM

AGM

JGM

AGM

DGM

AGM

JGM

8,834,404

10,010,886

9,938,214

7,896,636

8,686,148

6,567,514

10,054,381

9,999,739

6,630,595

7,176,089

9,938,214

7,413,989

7,477,304

4,886,078

8,940,976

5,865,173

18,198,758

16,735,043

7,237,420

4,893,580

11,759,433

11,007,007

8,975,212

6,146,132

7,063,344

6,495,266

6,280,028

12,801,240

7,293,310

7,348,826

8,086,497

7,963,299

7,735,165

6,146,132

5,968,928

6,063,560

6,264,888

8,935,660

6,175,643

7,321,178

8,027,389

7,434,533

12,801,609

11,398,153

7-Jun-01 Deputy Manager,OTC Exchange of India

25-Feb-08 Associate Director,Standard Chartered Bank

1-Apr-00 Manager Operations, Indusind Bank

15-Nov-02 Deputy Manager,Centurion Bank

16-Feb-04 Manager, ABN Amro Bank

3-Mar-08 Citibank (China) Limited

17-Aug-10 SVP,Reliance Asset Management (Singapore) Pvt. Limited

6-Nov-07 Chief Compliance Officer,National Bank of Pakistan

1-Jul-03 Senior Director & Head Trade Banking, American Express Bank

26-Mar-08 HSBC Bank

28-Dec-99 Manager, Meta Strips Limited

18-Sep-00

1-Apr-99 Perfect Relations Limited

2-Aug-04

Indusind Bank

16-Dec-02 Bharati Cellular Limited

12-Sep-00 Citicorp Maruti Finance Limited

29-Jun-92 Systems Manager, Wipro Systems

24-Jan-06 Director,UOB Bank

28-Feb-00

IndusInd Bank Limited

31-Dec-04 Assistant Manager, Indian Oil Corporation Limited

3-Nov-03 Deputy Manager, E-Serve International Limited

9-Jun-03 Head of Finance & Risk, AIB Govett (Asia) Limited

* Indicates part of the year
+ Nature of employment contractual , other employees are in the permanent employment of the Bank, governed by its rules and conditions of service
# Remuneration includes payment for services rendered abroad during the year
**Designation/Nature of duties - Abbreviations
MDCEO
ED
GCOCS
GMJCS

- Managing Director and Chief Executive Officer
- Executive Director
- Group Compliance Officer & Company Secretary
- General Manager - Joint Company Secretary & Head compliance

Executive Director and CFO
Senior General Manager & Deputy Chief Financial Officer
Senior General Manager
General Manager

EDCFO
DYCFO
SGM
GM

-
-
-
-

- Capital Market and Non-Banking Subsidiaries

JGM
AGM

- Joint General Manager
- Assistant General Manager

DGM
CM

- Deputy General Manager
-

Chief Manager

Note :
1. Gross remuneration for employees posted in India includes salary and other benefits and employer’s contribution to provident and superannuation and Gratuity Funds.It excludes valuation of the employee

stock options exercised during fiscal 2012 as it does not constitute remuneration for the purposes of Companies Act, 1956

2. Gross remuneration for employees posted at branches and offices abroad includes salary and other benefits paid in foreign currency which is converted into Indian currency at the exchange rate as on

March 31, 2012

3. Net remuneration for employees posted in India represents gross remuneration less profession tax and income tax
4. Net remuneration for employees posted at branches and offices abroad represents gross remuneration less applicable tax/statutory deductions as applicable to the respective countries
5. None of the employees mentioned above is a relative of any Director
6. Designation of duties are as on March 31, 2012 and remuneration is for the year ended on that date

May 04, 2012

For and on behalf of the Board

K. V. Kamath
Chairman

Annual Report 2011-2012 75

financials

auditors’ report

To the Members of ICICI Bank Limited

1. We have audited the attached balance sheet of ICICI Bank Limited (the ‘Bank’) as at 31 March 2012 and also the profit and
loss account and cash flow statement for the year ended on that date annexed thereto. These financial statements are
the responsibility of the Bank’s management. Our responsibility is to express an opinion on these financial statements
based on our audit. Incorporated in the said financial statements are the returns of the Singapore, Bahrain, Hong Kong,
Dubai, Qatar, Sri Lanka and New York-USA branches of the Bank, audited by other auditors.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.

The balance sheet and profit and loss account are drawn up in conformity with Forms A and B (revised) of the Third
Schedule to the Banking Regulation Act, 1949, read with Section 211 of the Companies Act, 1956.

4. We did not audit the financial statements of Singapore, Bahrain, Hong Kong, Dubai, Qatar, Sri Lanka and New York-USA
branches, whose financial statements reflect total assets of Rs. 1,140,883 million as at 31 March 2012, the total revenue
of Rs. 53,809 million for the year ended 31 March 2012 and net cash flows amounting to Rs. 119,605 million for the year
ended 31 March 2012. These financial statements have been audited by other auditors, duly qualified to act as auditors
in the country of incorporation of the said branches, whose reports have been furnished to us, and our opinion is based
solely on the report of other auditors.

5. We report that:

a) We have obtained all the information and explanations, which to the best of our knowledge and belief were

necessary for the purposes of our audit and have found them to be satisfactory;

In our opinion, the transactions of the Bank which have come to our notice have been within its powers;

c) We have visited 100 branches of the Bank for the purpose of our audit;

In our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our
examination of those books and proper returns adequate for the purposes of our audit have been received from
branches not visited by us. The Branch Auditor’s Report(s) have been forwarded to us and have been appropriately
dealt with;

e) The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with

the books of account and with audited returns of the branches;

In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply
with the accounting standards referred to in sub section (3C) of Section 211 of the Companies Act, insofar as they
apply to the Bank;

g) On the basis of written representations received from the directors, as on 31 March 2012, and taken on record by
the Board of Directors, we report that none of the directors is disqualified from being appointed as a director in
terms of clause (g) of sub section (1) of Section 274 of the Companies Act, 1956;

In our opinion and to the best of our information and according to the explanations given to us, the said accounts
give the information required by the Companies Act, 1956 in the manner so required for banking companies, and
give a true and fair view in conformity with the accounting principles generally accepted in India;

ii.

in case of the balance sheet, of the state of the affairs of the Bank as at 31 March 2012;

in case of the profit and loss account, of the profit for the year ended on that date; and

iii.

in case of cash flow statement, of the cash flows for the year ended on that date.

For S.R. Batliboi & Co.
Firm registration number: 301003E
Chartered Accountants

per Shrawan Jalan
Partner
Membership No.: 102102

Mumbai
April 27, 2012

balance sheet

at March 31, 2012

Schedule

At
31.03.2012

(` in ‘000s)

At
31.03.2011

CAPITAL AND LIABILITIES

Capital ............................................................................................

Employees stock options outstanding .........................................

Reserves and surplus ....................................................................

Deposits .........................................................................................

Borrowings ....................................................................................

Other liabilities and provisions .....................................................

TOTAL CAPITAL AND LIABILITIES ..............................................

ASSETS

Cash and balances with Reserve Bank of India ...........................

Balances with banks and money at call and short notice ...........

Investments ...................................................................................

Advances .......................................................................................

Fixed assets ...................................................................................

Other assets ...................................................................................

11,527,683

11,518,200

23,854

2,929

592,500,885

539,388,244

2,554,999,561

2,256,021,077

1,401,649,073

1,095,542,771

175,769,846

159,863,467

4,736,470,902

4,062,336,688

204,612,935

209,069,703

157,680,199

131,831,128

1,595,600,430

1,346,859,630

2,537,276,579

2,163,659,014

46,146,870

47,442,551

195,153,889

163,474,662

TOTAL ASSETS .............................................................................

4,736,470,902

4,062,336,688

Contingent liabilities ......................................................................

9,154,651,059

9,231,216,140

Bills for collection ..........................................................................

75,720,571

85,300,273

Significant accounting policies and notes to accounts ...............

17 & 18

The schedules referred to above form an integral part of the Balance Sheet.

As per our Report of even date.

For and on behalf of the Board of Directors

For S.R. Batliboi & Co.
Firm’s Registration no.: 301003E
Chartered Accountants

SHRAWAN JALAN
Partner
Membership no.: 102102

Place : Mumbai
Date : April 27, 2012

K. V. KAMATH
Chairman

SRIDAR IYENGAR

CHANDA KOCHHAR
Director Managing Director & CEO

N. S. KANNAN
Executive Director & CFO

K. RAMKUMAR
Executive Director

RAJIV SABHARWAL
Executive Director

SANDEEP BATRA
Group Compliance Officer &
Company Secretary

RAKESH JHA
Deputy Chief
Financial Officer

profit and loss account

for the year ended March 31, 2012

(` in ‘000s)

Schedule

Year ended
31.03.2012

Year ended
31.03.2011

13
14

15
16

II.

III.

INCOME
Interest earned .......................................................................
Other income .........................................................................
TOTAL INCOME ....................................................................

EXPENDITURE
Interest expended .................................................................
Operating expenses ..............................................................
Provisions and contingencies (refer note 18.38)..................
TOTAL EXPENDITURE ..........................................................

PROFIT/(LOSS) .....................................................................
Net profit for the year ............................................................
Profit brought forward ...........................................................
TOTAL PROFIT/(LOSS) .........................................................

IV. APPROPRIATIONS/TRANSFERS

Transfer to Statutory Reserve ...............................................
Transfer to Reserve Fund ......................................................
Transfer to Capital Reserve ...................................................
Transfer to/(from) Investment Reserve Account ..................
Transfer to General Reserve .................................................
Transfer to Special Reserve ..................................................
Dividend (including corporate dividend tax) for the
previous year paid during the year ......................................
Proposed equity share dividend ...........................................
Proposed preference share dividend ...................................
Corporate dividend tax .........................................................
Balance carried over to balance sheet .................................
TOTAL ....................................................................................

Significant accounting policies and notes to accounts
Earnings per share (refer note 18.1)

Basic (`) .................................................................................
Diluted (`) ..............................................................................
Face value per share (`) ................................................................

17 & 18

The schedules referred to above form an integral part of the Profit and Loss Account.

335,426,522
75,027,598
410,454,120

228,084,964
78,504,433
39,212,151
345,801,548

64,652,572
50,181,837
114,834,409

16,170,000
10,665
380,000
–
3,154
6,500,000

4,284
19,020,400
35
2,203,548
70,542,323
114,834,409

56.11
55.95
10.00

259,740,528
66,478,925
326,219,453

169,571,515
66,172,492
38,961,684
274,705,691

51,513,762
34,643,807
86,157,569

12,880,000
360
832,500
(1,160,000)
2,584
5,250,000

21,658
16,125,811
35
2,022,784
50,181,837
86,157,569

45.27
45.06
10.00

As per our Report of even date.

FOR S.R. BATLIBOI & Co.
Firm’s Registration no.: 301003E
Chartered Accountants

SHRAWAN JALAN
Partner
Membership no.: 102102

Place : Mumbai
Date : April 27, 2012

For and on behalf of the Board of Directors

K. V. KAMATH
Chairman

SRIDAR IYENGAR

CHANDA KOCHHAR
Director Managing Director & CEO

N. S. KANNAN
Executive Director & CFO

K. RAMKUMAR
Executive Director

RAJIV SABHARWAL
Executive Director

SANDEEP BATRA
Group Compliance Officer &
Company Secretary

RAKESH JHA
Deputy Chief
Financial Officer

cash flow statement

for the year ended March 31, 2012

Cash flow from operating activities
Profit before taxes ...........................................................................................
Adjustments for :
Depreciation and amortisation .......................................................................
Net (appreciation)/depreciation on investments ............................................
Provision in respect of non-performing assets (including prudential
provision on standard assets) .........................................................................
Provision for contingencies & others ..............................................................
Income from subsidiaries, joint ventures and consolidated entities
(Profit)/Loss on sale of fixed assets ................................................................
Employees stock options grants ....................................................................

Adjustments for :
(Increase)/decrease in investments ................................................................
(Increase)/decrease in advances ....................................................................
Increase/(decrease) in borrowings .................................................................
Increase/(decrease) in deposits ......................................................................
(Increase)/decrease in other assets ................................................................
Increase/(decrease) in other liabilities and provisions ..................................

Refund/(payment) of direct taxes ...................................................................
Net cash flow from/(used in) operating activities .......................................
Cash flow from investing activities ...............................................................
Investments in subsidiaries and/or joint ventures (including application money)
Income from subsidiaries, joint ventures and consolidated entities ............
Purchase of fixed assets ....................................................................................
Proceeds from sale of fixed assets .................................................................
(Purchase)/sale of held to maturity securities ................................................
Net cash used in investing activities ............................................................
Cash flow from financing activities ...............................................................
Proceeds from issue of share capital (including ESOPs) ...............................
Net proceeds/(repayment) of bonds (including subordinated debt) ............
Dividend and dividend tax paid ......................................................................
Net cash generated from financing activities...............................................
Effect of exchange fluctuation on translation reserve .................................
Net cash and cash equivalents taken over from erstwhile The Bank of
Rajasthan Limited on amalgamation ...........................................................
Net increase/(decrease) in cash and cash equivalents (A)+(B)+(C)+(D)+(E)
Cash and cash equivalents at beginning of the year ...................................
Cash and cash equivalents at end of the year .............................................

(A)

(B)

(E)

Year ended
31.03.2012

(` in ‘000s)

Year ended
31.03.2011

88,034,223

67,607,025

6,016,209
11,007,862

9,931,796
1,766,718
(7,625,631)
16,876
20,925
109,168,978

(127,636,008)
(388,801,703)
249,218,173
298,978,483
(34,417,248)
11,538,969
8,880,666

(21,211,450)
96,838,194

–
7,625,631
(4,530,919)
90,174
(125,986,553)
(122,801,667)

591,128
55,861,251
(18,152,914)
38,299,465
9,056,310

–
21,392,302
340,900,832
362,293,134

6,779,203
13,498,447

19,769,127
1,061,083
(4,358,221)
(411,695)
2,929
103,947,898

(56,232,153)
(310,048,851)
102,920,003
100,567,606
24,232,654
(15,973,315)
(154,534,056)

(18,503,060)
(69,089,218)

(2,516,000)
4,358,221
(4,557,106)
552,792
(18,926,154)
(21,088,247)

1,404,886
44,680,138
(15,025,283)
31,059,741
(490,685)

11,772,300
(47,836,109)
388,736,940
340,900,831

Significant accounting policies and notes to accounts (refer schedule 17 & 18).
The schedules referred to above form an integral part of the Balance Sheet.
As per our Report of even date.

For and on behalf of the Board of Directors

FOR S.R. BATLIBOI & Co.
Firm’s Registration no.: 301003E
Chartered Accountants

SHRAWAN JALAN
Partner
Membership no.: 102102

Place : Mumbai
Date : April 27, 2012

K. V. KAMATH
Chairman

SRIDAR IYENGAR

CHANDA KOCHHAR
Director Managing Director & CEO

N. S. KANNAN
Executive Director & CFO

K. RAMKUMAR
Executive Director

RAJIV SABHARWAL
Executive Director

SANDEEP BATRA
Group Compliance Officer &
Company Secretary

RAKESH JHA
Deputy Chief
Financial Officer

schedules

forming part of the Balance Sheet

SCHEDULE 1 - CAPITAL

Authorised capital

(` in ‘000s)

At
31.03.2012

At
31.03.2011

1,275,000,000 equity shares of ` 10 each (March 31, 2011: 1,275,000,000 equity
shares of ` 10 each )............................................................................................................

12,750,000

15,000,000 shares of ` 100 each (March 31, 2011: 15,000,000 shares of ` 100 each)1

1,500,000

350 preference shares of ` 10 million each (March 31, 2011: 350 preference shares of
` 10 million each)2 ..............................................................................................................

3,500,000

Equity share capital

Issued, subscribed and paid-up capital

1,151,772,372 equity shares of ` 10 each (March 31, 2011: 1,114,845,314 equity
shares) .................................................................................................................................

11,517,723

11,148,453

Add: Nil equity shares of ` 10 each fully paid up issued to shareholders of erstwhile
The Bank of Rajasthan Limited (March 31, 2011 : 34,184,121 equity shares) ..................

Less: Nil equity shares of the Bank, earlier held by erstwhile The Bank of Rajasthan
Limited, extinguished on amalgamation (March 31, 2011 : 200 equity shares) ...............

Add: 942,070 equity shares of ` 10 each fully paid up (March 31, 2011: 2,743,137
equity shares) issued pursuant to exercise of employee stock options ...........................

Less: Calls unpaid ..............................................................................................................

Add: 111,603 equity shares forfeited (March 31, 2011: 111,603 equity shares) ..............

–

341,841

(2)

9,421

27,431

11,527,144

11,517,723

(231)

770

(293)

770

TOTAL CAPITAL ..................................................................................................................

11,527,683

11,518,200

These shares will be of such class and with such rights, privileges, conditions or restrictions as may be determined by the Bank in
accordance with the Articles of Association of the Bank and subject to the legislative provisions in force for the time being in that behalf.

Pursuant to RBI circular no. DBOD.BP.BC No.81/ 21.01.002/2009-10, the issued and paid-up preference shares are grouped under
Schedule 4 - “Borrowings”.

schedules

forming part of the Balance Sheet (Contd.)

(` in ‘000s)

At
31.03.2012

At
31.03.2011

SCHEDULE 2 - RESERVES AND SURPLUS
I.

Statutory reserve
Opening balance ........................................................................................................
Additions during the year1 .........................................................................................
Deductions during the year .......................................................................................
Closing balance ..........................................................................................................
Special reserve
Opening balance ........................................................................................................
Additions during the year ..........................................................................................
Deductions during the year .......................................................................................
Closing balance ..........................................................................................................

II.

73,746,519
16,170,000
–
89,916,519

31,690,000
6,500,000
–
38,190,000

III. Securities premium

Opening balance ........................................................................................................
Additions during the year2 .........................................................................................
Deductions during the year3 ......................................................................................
Closing balance ..........................................................................................................

313,009,799
581,646
–
313,591,445

IV.

Investment reserve Account
Opening balance ........................................................................................................
Additions during the year ..........................................................................................
Deductions during the year4 ......................................................................................
Closing balance ..........................................................................................................

Capital reserve
Opening balance ........................................................................................................
Additions during the year5 .........................................................................................
Deductions during the year .......................................................................................
Closing balance ..........................................................................................................

VI. Foreign currency translation reserve

Opening balance ........................................................................................................
Additions during the year ..........................................................................................
Deductions during the year .......................................................................................
Closing balance ..........................................................................................................

VII. Reserve fund

Opening balance ........................................................................................................
Additions during the year6 .........................................................................................
Deductions during the year .......................................................................................
Closing balance ..........................................................................................................

VIII. Revenue and other reserves

Opening balance ........................................................................................................
Additions during the year7,8 .......................................................................................
Deductions during the year .......................................................................................
Closing balance ..........................................................................................................

IX. Balance in profit and loss account .............................................................................

TOTAL RESERVES AND SURPLUS

–
–
–
–

21,462,500
380,000
–
21,842,500

(510,690)
9,056,310
–
8,545,620

11,279
10,665
–
21,944

49,797,000
53,534
–
49,850,534

70,542,323
592,500,885

58,863,807
14,882,712
–
73,746,519

26,440,000
5,250,000
–
31,690,000

313,511,817
1,595,956
(2,097,974)
313,009,799

1,160,000
–
(1,160,000)
–

20,630,000
832,500
–
21,462,500

(19,999)
–
(490,691)
(510,690)

10,919
360
–
11,279

49,794,416
2,584
–
49,797,000

50,181,837
539,388,244

Includes ` 2,002.7 million at March 31, 2011 on account of amalgamation of erstwhile The Bank of Rajasthan Limited.
Includes ` 471.9 million (March 31, 2011: ` 1,391.3 million) on exercise of employee stock options.

1.
2.
3. Represents excess of paid up value of equity shares issued over the fair value of the net assets acquired on amalgamation with erstwhile

The Bank of Rajasthan Limited and amalgamation expenses at March 31, 2011.

4. Represents the amount utilised for provision made during the year towards depreciation in investments in AFS and HFT categories.
5. Represents profit on sale of investments in HTM category, net of taxes and transfer to Statutory Reserve. Also includes profit on sale of

land and buildings, net of taxes and transfer to Statutory Reserve.
6.
Includes appropriations made to Reserve Fund and Investment Fund account in accordance with regulations applicable to Sri Lanka branch.
7. At March 31, 2012 includes ` 50.4 million (March 31, 2011: Nil) transferred to General Reserve in terms of RBI circular no. DBOD.No.BP.

BC.26/ 21.04.048/2008-2009 dated July 30, 2008, on Agricultural Debt Waiver and Debt Relief Scheme, 2008.

8. Refer item 8 in Schedule-18.

schedules

forming part of the Balance Sheet (Contd.)

(` in ‘000s)

At
31.03.2012

At
31.03.2011

SCHEDULE 3 - DEPOSITS

I. Demand deposits

i)
From banks ...................................................................................................
ii) From others ...................................................................................................
II. Savings bank deposits .........................................................................................
III. Term deposits

19,678,455
330,052,077
760,463,132

20,175,805
327,599,485
668,689,461

i)
From banks ...................................................................................................
ii) From others ...................................................................................................
TOTAL DEPOSITS ..............................................................................................................

98,704,681
1,346,101,216
2,554,999,561

153,559,266
1,085,997,060
2,256,021,077

I. Deposits of branches in India ..............................................................................
II. Deposits of branches outside India .....................................................................
TOTAL DEPOSITS ..............................................................................................................

2,423,717,728
131,281,833
2,554,999,561

2,141,804,854
114,216,223
2,256,021,077

SCHEDULE 4 - BORROWINGS
Borrowings in India
I.
i) Reserve Bank of India .........................................................................................
ii) Other banks ..........................................................................................................
iii) Other institutions and agencies

a) Government of India .....................................................................................
b) Financial institutions .....................................................................................

iv) Borrowings in the form of Bonds and debentures

(excluding subordinated debt)1 ...........................................................................
v) Application money-bonds ...................................................................................
vi) Capital instruments

a) Innovative Perpetual Debt Instruments (IPDI)

170,550,000
18,815,625

52,813
45,750,069

4,770,338
–

2,050,000
37,229,750

299,581
47,140,042

11,268,671
–

(qualifying as Tier l capital) ............................................................................

13,010,000

b) Hybrid debt capital instruments issued as bonds/debentures
(qualifying as upper Tier II capital) .................................................................

c) Redeemable Non-Cumulative Preference Shares (RNCPS)

(Redeemable Non-Cumulative Preference Shares of ` 10 million each

issued to preference share holders of erstwhile ICICI Limited on
amalgamation, redeemable at par on April 20, 2018) ..................................

d) Unsecured redeemable debentures/bonds
(subordinated debt included in Tier II capital) ...............................................
TOTAL BORROWINGS IN INDIA .......................................................................................

98,181,421

98,188,633

3,500,000

201,923,361
556,553,627

197,473,236
410,159,913

II.

Borrowings outside India
i) Capital instruments

a) Innovative Perpetual Debt Instruments (IPDI)
(qualifying as Tier l capital) .............................................................................
b) Hybrid debt capital instruments issued as bonds/debentures
(qualifying as upper Tier II capital) .................................................................
ii) Bonds and notes ..................................................................................................
iii) Other borrowings2................................................................................................
TOTAL BORROWINGS OUTSIDE INDIA ...........................................................................
TOTAL BORROWINGS

17,244,895

15,106,107

45,787,500
342,580,657
439,482,394
845,095,446
1,401,649,073

40,135,500
278,368,421
351,772,830
685,382,858
1,095,542,771

1.
2.
3. Secured borrowings in I and II above are Nil (March 31, 2011: Nil) except borrowings of ` 1,667.4 million (March 31, 2011: ` 1.2 million)
under Collateralised Borrowing and Lending Obligation and market repurchase transactions with banks and financial institutions and
transactions under Liquidity Adjustment Facility with RBI amounting to ` 168,000.0 million at March 31, 2012.

schedules

forming part of the Balance Sheet (Contd.)

(` in ‘000s)

At
31.03.2012

At
31.03.2011

SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS

II.

Bills payable ................................................................................................................

35,556,356

34,304,793

Inter-office adjustments (net credit) ..........................................................................

3,076,441

–

III.

Interest accrued ..........................................................................................................

30,693,392

26,398,543

IV. Sundry creditors .........................................................................................................

34,537,725

31,879,286

Provision for standard assets.....................................................................................

14,796,004

VI. Others1 .......................................................................................................................

57,109,928

52,484,841

TOTAL OTHER LIABILITIES AND PROVISIONS ...............................................................

175,769,846

159,863,467

Includes:
a) Proposed dividend amounting to ` 19,020.4 million (March 31, 2011: ` 16,125.8 million).
b) Corporate dividend tax payable amounting to ` 2,203.5 million (March 31, 2011: ` 2,022.8 million).

SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA

II.

Cash in hand (including foreign currency notes) ......................................................

46,696,165

37,843,512

Balances with Reserve Bank of India in current accounts ........................................

157,916,770

171,226,191

TOTAL CASH AND BALANCES WITH RESERVE BANK OF INDIA ................................

204,612,935

209,069,703

SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE

In India

i) Balances with banks

In current accounts .......................................................................................

2,828,505

4,996,213

In other deposit accounts .............................................................................

36,822,361

39,418,419

ii) Money at call and short notice

a) With banks ....................................................................................................

b) With other institutions ..................................................................................

5,087,500

4,568,688

9,600,000

1,999,606

TOTAL ...............................................................................................................................

49,307,054

56,014,238

II. Outside India

In current accounts ..............................................................................................

23,470,339

20,331,714

ii)

In other deposit accounts ....................................................................................

35,029,254

11,187,780

iii) Money at call and short notice ............................................................................

49,873,552

44,297,396

TOTAL ...............................................................................................................................

108,373,145

75,816,890

TOTAL BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE .........

157,680,199

131,831,128

schedules

forming part of the Balance Sheet (Contd.)

SCHEDULE 8 - INVESTMENTS

Investments in India [net of provisions]
i) Government securities ........................................................................................
ii) Other approved securities ...................................................................................
iii) Shares (includes equity and preference shares) ...............................................
iv) Debentures and bonds .......................................................................................
v) Subsidiaries and/or joint ventures1 .....................................................................
vi) Others (commercial paper, mutual fund units, pass through certificates,
security receipts, certificate of deposits, RIDF and other related
investments etc.) ...............................................................................................

(` in ‘000s)

At
31.03.2012

At
31.03.2011

869,480,205
4,250
22,922,636
195,135,236
64,796,927

641,287,140
325,363
28,134,073
161,462,866
64,796,927

361,872,334

356,934,417

TOTAL INVESTMENTS IN INDIA ......................................................................................

1,514,211,588

1,252,940,786

II.

Investments outside India [net of provisions]
i) Government securities ........................................................................................
ii) Subsidiaries and/or joint ventures abroad

(includes equity and preference shares) ............................................................
iii) Others ...................................................................................................................

TOTAL INVESTMENTS OUTSIDE INDIA ..........................................................................

4,399,569

8,862,278

66,864,257
10,125,016

81,388,842

66,026,356
19,030,210

93,918,844

TOTAL INVESTMENTS ......................................................................................................

1,595,600,430

1,346,859,630

Investments in India
Gross value of investments .......................................................................................
Less: Aggregate of provision/depreciation ...............................................................
Net investments..........................................................................................................
Investments outside India
Gross value of investments .......................................................................................
Less: Aggregate of provision/depreciation ...............................................................
Net investments..........................................................................................................
TOTAL INVESTMENTS ......................................................................................................
1.

Includes application money amounting to ` 50.7 million (March 31, 2011: ` 50.7 million).

SCHEDULE 9 - ADVANCES [net of provisions]
A.

i) Bills purchased and discounted ..........................................................................
ii) Cash credits, overdrafts and loans repayable on demand ................................
iii) Term loans ............................................................................................................
iv) Securitisation, finance lease and hire purchase receivables ............................
TOTAL ADVANCES ............................................................................................................
i) Secured by tangible assets (includes advances against book debts) ...............
B.
ii) Covered by bank/government guarantees .........................................................
iii) Unsecured ............................................................................................................
TOTAL ADVANCES ............................................................................................................
C.

I. Advances in India

i) Priority sector ................................................................................................
ii) Public sector ..................................................................................................
iii) Banks .............................................................................................................
iv) Others ............................................................................................................
TOTAL ADVANCES IN INDIA ............................................................................................

II. Advances outside India

1,539,777,243
25,565,655
1,514,211,588

81,826,347
437,505
81,388,842
1,595,600,430

48,693,815
317,745,152
2,019,802,749
151,034,863
2,537,276,579
2,138,141,465
13,869,020
385,266,094
2,537,276,579

592,856,433
11,968,345
154,618
1,238,268,015
1,843,247,411

1,272,423,922
19,483,136
1,252,940,786

94,499,793
580,949
93,918,844
1,346,859,630

58,480,555
302,123,773
1,690,225,268
112,829,418
2,163,659,014
1,679,661,354
27,057,409
456,940,251
2,163,659,014

534,015,609
13,788,639
1,810,607
1,063,077,445
1,612,692,300

i) Due from banks ............................................................................................
ii) Due from others

22,280,480

37,410,346

a) Bills purchased and discounted .............................................................
b) Syndicated and term loans .....................................................................
c) Others ......................................................................................................
TOTAL ADVANCES OUTSIDE INDIA ................................................................................
TOTAL ADVANCES ............................................................................................................

5,098,400
647,151,172
19,499,116
694,029,168
2,537,276,579

4,572,713
494,699,999
14,283,656
550,966,714
2,163,659,014

schedules

forming part of the Balance Sheet (Contd.)

(` in ‘000s)

At
31.03.2012

At
31.03.2011

SCHEDULE 10 - FIXED ASSETS

Premises
At cost at March 31 of preceding year .....................................................................
Additions during the year1 .........................................................................................
Deductions during the year .......................................................................................
Depreciation to date ..................................................................................................
Net block .....................................................................................................................

II. Other fixed assets (including furniture and fixtures)

At cost at March 31 of preceding year .....................................................................
Additions during the year1 .........................................................................................
Deductions during the year .......................................................................................
Depreciation to date ..................................................................................................
Net block ....................................................................................................................

III. Assets given on lease

At cost at March 31 of preceding year .....................................................................
Additions during the year ..........................................................................................
Deductions during the year .......................................................................................
Depreciation to date, accumulated lease adjustment and provisions ....................
Net block .....................................................................................................................
TOTAL FIXED ASSETS .......................................................................................................

Includes assets acquired from erstwhile The Bank of Rajasthan Limited at March 31, 2011.

SCHEDULE 11 - OTHER ASSETS
Inter-office adjustments (net) .....................................................................................
I.
II.
Interest accrued ..........................................................................................................
III. Tax paid in advance/tax deducted at source (net) ....................................................
IV.
Stationery and stamps ...............................................................................................
Non-banking assets acquired in satisfaction of claims1 ...........................................
V.
VI. Advances for capital assets ......................................................................................
VII. Deposits ......................................................................................................................
VIII. Deferred tax asset (net) ..............................................................................................
IX. Others .........................................................................................................................
TOTAL OTHER ASSETS ......................................................................................................

37,997,195
690,890
(63,012)
(6,916,047)
31,709,026

35,777,378
2,997,878
(456,018)
(26,275,723)
12,043,515

17,300,087
—
(543)
(14,905,215)
2,394,329
46,146,870

—
42,175,150
34,161,502
10,308
600,575
1,344,889
10,669,329
25,453,167
80,738,969
195,153,889

23,122,359
15,480,495
(605,659)
(5,799,328)
32,197,867

30,468,293
6,048,746
(739,661)
(23,103,046)
12,674,332

17,550,500
—
(250,413)
(14,729,735)
2,570,352
47,442,551

207,829
39,216,054
34,885,203
109,751
730,338
1,131,955
11,868,646
26,900,252
48,424,634
163,474,662

Includes certain non-banking assets acquired in satisfaction of claims which are in the process of being transferred in the Bank’s name.

SCHEDULE 12 - CONTINGENT LIABILITIES
I.
II.
III.
IV. Guarantees given on behalf of constituents

Claims against the Bank not acknowledged as debts ..............................................
Liability for partly paid investments ..........................................................................
Liability on account of outstanding forward exchange contracts1 ...........................

a) In India ...................................................................................................................
b) Outside India .........................................................................................................
V.
Acceptances, endorsements and other obligations .................................................
VI. Currency swaps1 .........................................................................................................
Interest rate swaps,currency options and interest rate futures1 ..............................
VII.
VIII. Other items for which the Bank is contingently liable2 .............................................
TOTAL CONTINGENT LIABILITIES ...................................................................................
1. Represents notional amount.
2.

29,310,352
128,050
3,560,050,874

17,022,222
128,050
2,468,618,342

720,946,196
234,068,666
568,856,614
616,403,680
3,362,012,187
62,874,440
9,154,651,059

647,336,491
178,935,843
393,340,369
561,284,711
4,903,897,090
60,653,022
9,231,216,140

Includes an amount of ` 8,307.0 million (March 31, 2011: ` 1,653.8 million) pertaining to government securities settled after the balance
sheet date, which are accounted as per settlement date method pursuant to RBI guidelines issued during the year ended March 31, 2011.

F10

schedules

forming part of the Profit and Loss Account

(` in ‘000s)

Year ended
31.03.2012

Year ended
31.03.2011

SCHEDULE 13 - INTEREST EARNED
I.

Interest/discount on advances/bills ...........................................................................

II.

III.

Income on investments ..............................................................................................

Interest on balances with Reserve Bank of India and other inter-bank funds .........

IV. Others1, 2 ......................................................................................................................

221,298,923

164,247,832

96,840,240

4,911,364

12,375,995

79,051,918

3,667,668

12,773,110

TOTAL INTEREST EARNED ...............................................................................................

335,426,522

259,740,528

1. Includes interest on income tax refunds amounting to ` 801.1 million (March 31, 2011: ` 1,646.3 million).
2. Includes interest and amortisation of premium on non-trading interest rate swaps and foreign currency swaps.

SCHEDULE 14 - OTHER INCOME

II.

Commission, exchange and brokerage ....................................................................

Profit/(loss) on sale of investments (net) ...................................................................

54,351,128

3,313,505

III. Profit/(loss) on revaluation of investments (net) .......................................................

(4,053,393)

IV.

Profit/(loss) on sale of land, buildings and other assets (net)1 .................................

(16,876)

Profit/(loss) on exchange transactions (net) .............................................................

12,589,981

VI.

Income earned by way of dividends, etc. from subsidiary companies and/or joint
ventures abroad/in India ............................................................................................
VII. Miscellaneous income (including lease income) .....................................................

7,364,045

1,479,208

55,146,367

2,176,146

(4,610,137)

411,695

9,168,753

4,113,468

72,633

TOTAL OTHER INCOME ....................................................................................................

75,027,598

66,478,925

Includes profit/(loss) on sale of assets given on lease.

SCHEDULE 15 - INTEREST EXPENDED

Interest on deposits ....................................................................................................

143,040,614

100,708,579

Interest on Reserve Bank of India/inter-bank borrowings ........................................

III. Others (including interest on borrowings of erstwhile ICICI Limited) .....................

14,692,117

70,352,233

12,482,351

56,380,585

TOTAL INTEREST EXPENDED ...........................................................................................

228,084,964

169,571,515

SCHEDULE 16 - OPERATING EXPENSES

Payments to and provisions for employees .............................................................

35,152,766

28,169,342

II.

III.

Rent, taxes and lighting .............................................................................................

Printing and stationery ..............................................................................................

IV. Advertisement and publicity .....................................................................................

Depreciation on Bank's property .............................................................................

VI. Depreciation (including lease equalisation) on leased assets ................................

VII. Directors' fees, allowances and expenses................................................................

VIII. Auditors' fees and expenses .....................................................................................

IX.

Law charges ...............................................................................................................

Postages, telegrams, telephones, etc. ......................................................................

XI. Repairs and maintenance .......................................................................................

XII.

Insurance ...................................................................................................................

XIII. Direct marketing agency expenses .........................................................................

XIV. Other expenditure ....................................................................................................

TOTAL OPERATING EXPENSES .......................................................................................

6,756,357

1,000,743

1,324,783

4,822,742

422,579

4,154

25,142

374,653

1,902,982

5,629,537

2,234,700

1,604,439

6,537,415

932,907

1,487,541

4,835,223

789,135

4,635

22,254

422,060

1,637,677

5,045,437

2,064,252

1,570,315

17,248,856

78,504,433

12,654,299

66,172,492

F11

schedules

forming part of the Accounts (Contd.)

SCHEDULE 17
Significant accounting policies
OVERVIEW
ICICI Bank Limited (ICICI Bank or the Bank), incorporated in Vadodara, India is a publicly held banking company engaged in
providing a wide range of banking and financial services including commercial banking and treasury operations. ICICI Bank is
a banking company governed by the Banking Regulation Act, 1949.

Basis of preparation
The financial statements have been prepared in accordance with requirements prescribed under the Third Schedule of the
Banking Regulation Act, 1949. The accounting and reporting policies of ICICI Bank used in the preparation of these financial
statements conform to Generally Accepted Accounting Principles in India (Indian GAAP), the guidelines issued by Reserve
Bank of India (RBI) from time to time, the Accounting Standards (AS) issued by the Institute of Chartered Accountants of
India (ICAI) and notified by the Companies (Accounting Standards) Rules, 2006 (as amended) to the extent applicable and
practices generally prevalent in the banking industry in India. The Bank follows the accrual method of accounting, except
where otherwise stated, and the historical cost convention.

The preparation of financial statements requires the management to make estimates and assumptions that are considered in
the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the
reported income and expenses during the reporting period. Management believes that the estimates used in the preparation
of the financial statements are prudent and reasonable. Future results could differ from these estimates.

SIGNIFICANT ACCOUNTING POLICIES
1.

Revenue recognition
a)

c)
d) Dividend is accounted on an accrual basis when the right to receive the dividend is established.
e) Loan processing fee is accounted for upfront when it becomes due.
f) Project appraisal/structuring fee is accounted for on the completion of the agreed service.
g) Arranger fee is accounted for as income when a significant portion of the arrangement/syndication is completed.
h) Commission received on guarantees issued is amortised on a straight-line basis over the period of the guarantee.
i) All other fees are accounted for as and when they become due.
j) Net income arising from sell-down/securitisation of loan assets prior to February 1, 2006 has been recognised
upfront as interest income. With effect from February 1, 2006, net income arising from securitisation of loan assets
is amortised over the life of securities issued or to be issued by the special purpose vehicle/special purpose entity
to which the assets are sold. Net income arising from sale of loan assets through direct assignment with recourse
obligation is amortised over the life of underlying assets sold and net income from sale of loan assets through direct
assignment, without any recourse obligation, is recognised at the time of sale. Net loss arising on account of the
sell-down/securitisation and direct assignment of loan assets is recognised at the time of sale.

k) The Bank deals in bullion business on a consignment basis. The difference between price recovered from customers
and cost of bullion is accounted for at the time of sales to the customers. The Bank also deals in bullion on a
borrowing and lending basis and the interest paid/received is accounted on accrual basis.

Investments
Investments are accounted for in accordance with the extant RBI guidelines on investment classification and valuation
as given below.
a) All investments are classified into ‘Held to Maturity’, ‘Available for Sale’ and ‘Held for Trading’. Reclassifications, if
any, in any category are accounted for as per RBI guidelines. Under each classification, the investments are further
categorised as (a) government securities, (b) other approved securities, (c) shares, (d) bonds and debentures, (e)
subsidiaries and joint ventures and (f) others.
‘Held to Maturity’ securities are carried at their acquisition cost or at amortised cost, if acquired at a premium over
the face value. Any premium over the face value of fixed rate and floating rate securities acquired is amortised over
the remaining period to maturity on a constant yield basis and straight line basis respectively.
‘Available for Sale’ and ‘Held for Trading’ securities are valued periodically as per RBI guidelines. Any premium
over the face value of fixed rate and floating rate investments in government securities, classified as ‘Available for
Sale’, is amortised over the remaining period to maturity on constant yield basis and straight line basis respectively.
Quoted investments are valued based on the trades/quotes on the recognised stock exchanges, subsidiary general

F12

schedules

forming part of the Accounts (Contd.)

ledger account transactions, price list of RBI or prices declared by Primary Dealers Association of India jointly with
Fixed Income Money Market and Derivatives Association (FIMMDA), periodically.
The market/fair value of unquoted government securities which are in the nature of Statutory Liquidity Ratio (SLR)
securities included in the ‘Available for Sale’ and ‘Held for Trading’ categories is as per the rates published by
FIMMDA. The valuation of other unquoted fixed income securities wherever linked to the Yield-to-Maturity (YTM)
rates, is computed with a mark-up (reflecting associated credit risk) over the YTM rates for government securities
published by FIMMDA.
Unquoted equity shares are valued at the break-up value, if the latest balance sheet is available, or at ` 1, as per RBI
guidelines.
Securities are valued scrip-wise and depreciation/appreciation is aggregated for each category. Net appreciation in
each category, if any, being unrealised, is ignored, while net depreciation is provided for.

d) Costs including brokerage and commission pertaining to investments, paid at the time of acquisition, are charged

to the profit and loss account.

e) Equity investments in subsidiaries/joint ventures are categorised as ‘Held to Maturity’ in accordance with RBI
guidelines. The Bank assesses these investments for any permanent diminution in value and appropriate provisions
are made.

f) Profit/loss on sale of investments in the ‘Held to Maturity’ category is recognised in the profit and loss account and
profit is thereafter appropriated (net of applicable taxes and statutory reserve requirements) to Capital Reserve.
Profit/loss on sale of investments in ‘Available for Sale’ and ‘Held for Trading’ categories is recognised in the profit
and loss account.

g) Market repurchase and reverse repurchase transactions are accounted for as borrowing and lending transactions
respectively in accordance with the extant RBI guidelines. The transactions with RBI under Liquidity Adjustment
Facility (LAF) are accounted for as borrowing and lending transactions from the quarter ended March 31, 2012.
h) Broken period interest (the amount of interest from the previous interest payment date till the date of purchase/sale

of instruments) on debt instruments is treated as a revenue item.

i) At the end of each reporting period, security receipts issued by the asset reconstruction companies are valued in
accordance with the guidelines applicable to such instruments, prescribed by RBI from time to time. Accordingly,
in cases where the cash flows from security receipts issued by the asset reconstruction companies are limited
to the actual realisation of the financial assets assigned to the instruments in the concerned scheme, the Bank
reckons the net asset value obtained from the asset reconstruction company from time to time, for valuation of such
investments at each reporting period end.

j) The Bank follows trade date method of accounting for purchase and sale of investments, except for government of
India and state government securities where settlement date method of accounting is followed in accordance with
RBI guidelines.

3. Provisions/write-offs on loans and other credit facilities

a) All credit exposures, including advances at the overseas branches and overdues arising from crystallised derivative
contracts, are classified as per RBI guidelines, into performing and NPAs. Advances held at the overseas branches
that are identified as impaired as per host country regulations but which are standard as per the extant RBI guidelines
are identified as NPAs at borrower level. Further, NPAs are classified into sub-standard, doubtful and loss assets
based on the criteria stipulated by RBI.
In the case of corporate loans, provisions are made for sub-standard and doubtful assets at rates prescribed by RBI.
Loss assets and the unsecured portion of doubtful assets are provided/written-off as per the extant RBI guidelines.
For advances booked in overseas branches, which are standard as per the extant RBI guidelines but are classified
as NPAs based on host country guidelines, provisions are made as per the host country regulations. Provisions on
homogeneous retail loans, subject to minimum provisioning requirements of RBI, are assessed at a borrower level
on the basis of days past due.
The Bank holds specific provisions against non-performing loans, general provision against performing loans and
floating provision taken over from erstwhile Bank of Rajasthan upon amalgamation. The assessment of incremental
specific provisions is made after taking into consideration the existing specific provision held. The specific provisions
on retail loans held by the Bank are higher than the minimum regulatory requirements.

b) Provision on assets restructured/rescheduled is made in accordance with the applicable RBI guidelines on

restructuring of advances by Banks.
In respect of non-performing loan accounts subjected to restructuring, the account is upgraded to standard only
after the specified period i.e. a period of one year after the date when first payment of interest or of principal,
whichever is earlier, falls due, subject to satisfactory performance of the account during the period.

c) Amounts recovered against debts written-off in earlier years and provisions no longer considered necessary in the

context of the current status of the borrower are recognised in the profit and loss account.

d) In addition to the specific provision on NPAs, the Bank maintains a general provision on performing loans. The

general provision covers the requirements of the RBI guidelines.

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schedules

forming part of the Accounts (Contd.)

In addition to the provisions required to be held according to the asset classification status, provisions are held for
individual country exposures (other than for home country exposure). The countries are categorised into seven risk
categories namely insignificant, low, moderate, high, very high, restricted and off-credit and provisioning is made
on exposures exceeding 180 days on a graded scale ranging from 0.25% to 100%. For exposures with contractual
maturity of less than 180 days, provision is required to be held at 25% of the rates applicable to exposures exceeding
180 days. If the country exposure (net) of the Bank in respect of each country does not exceed 1% of the total
funded assets, no provision is required on such country exposure.

Transfer and servicing of assets
The Bank transfers commercial and consumer loans through securitisation transactions. The transferred loans are
de-recognised and gains/losses are accounted for only if the Bank surrenders the rights to benefits specified in the
underlying securitised loan contract. Recourse and servicing obligations are accounted for net of provisions.
In accordance with the RBI guidelines for securitisation of standard assets, with effect from February 1, 2006, the Bank
accounts for any loss arising from securitisation immediately at the time of sale and the profit/premium arising from
securitisation is amortised over the life of the securities issued or to be issued by the special purpose vehicle to which
the assets are sold. In the case of loans sold to an asset reconstruction company, the excess provision is not reversed
but is utilised to meet the shortfall/loss on account of sale of other financial assets to securitisation company (SC)/
reconstruction company (RC).

Fixed assets and depreciation
Premises and other fixed assets are carried at cost less accumulated depreciation. Cost includes freight, duties, taxes and
incidental expenses related to the acquisition and installation of the asset. Depreciation is charged over the estimated
useful life of a fixed asset on a straight-line basis. The rates of depreciation for fixed assets, which are not lower than the
rates prescribed in Schedule XIV of the Companies Act, 1956, are given below.

Asset
Premises owned by the Bank
Improvements to leasehold premises
ATMs
Plant and machinery like air conditioners, photo-copying
machines, etc.
Computers
Furniture and fixtures
Motor vehicles
Others (including Software and system development expenses)

Depreciation Rate
1.63%
1.63% or over the lease period, whichever is higher
12.50%

10.00%

33.33%
15.00%
20.00%
25.00%

a. Depreciation on leased assets and leasehold improvements is recognised on a straight-line basis using rates
determined with reference to the primary period of lease or rates specified in Schedule XIV to the Companies Act,
1956, whichever is higher.

b. Assets purchased/sold during the year are depreciated on a pro-rata basis for the actual number of days the asset

has been put to use.
Items costing upto ` 5,000/- are depreciated fully over a period of 12 months from the date of purchase.

c.
d. Assets at residences of Bank’s employees are depreciated at 20% per annum.
e.

In case of revalued/impaired assets, depreciation is provided over the remaining useful life of the assets with
reference to revised assets values.

Transactions involving foreign exchange
Foreign currency income and expenditure items of domestic operations are translated at the exchange rates prevailing
on the date of the transaction. Income and expenditure items of integral foreign operations (representative offices) are
translated at daily closing rates, and income and expenditure items of non-integral foreign operations (foreign branches
and offshore banking units) are translated at quarterly average closing rates.
Monetary foreign currency assets and liabilities of domestic and integral foreign operations are translated at closing
exchange rates notified by Foreign Exchange Dealers’ Association of India (FEDAI) at the balance sheet date and the
resulting profits/losses are included in the profit and loss account.
Both monetary and non-monetary foreign currency assets and liabilities of non-integral foreign operations are translated
at closing exchange rates notified by FEDAI at the balance sheet date and the resulting profits/losses from exchange
differences are accumulated in the foreign currency translation reserve until the disposal of the net investment in the
non-integral foreign operations.
The premium or discount arising on inception of forward exchange contracts that are entered into to establish the
amount of reporting currency required or available at the settlement date of a transaction is amortised over the life of the
contract. All other outstanding forward exchange contracts are revalued based on the exchange rates notified by FEDAI

F14

schedules

forming part of the Accounts (Contd.)

for specified maturities and at interpolated rates for contracts of interim maturities. The contracts of longer maturities
where exchange rates are not notified by FEDAI, are revalued based on the forward exchange rates implied by the swap
curves in respective currencies. The resultant gains or losses are recognised in the profit and loss account.
Contingent liabilities on account of guarantees, endorsements and other obligations denominated in foreign currencies
are disclosed at the closing exchange rates notified by FEDAI at the balance sheet date.

Accounting for derivative contracts
The Bank enters into derivative contracts such as foreign currency options, interest rate and currency swaps, credit
default swaps and cross currency interest rate swaps.
The swap contracts entered to hedge on-balance sheet assets and liabilities are structured such that they bear an
opposite and offsetting impact with the underlying on-balance sheet items. The impact of such derivative instruments
is correlated with the movement of underlying assets and accounted pursuant to the principles of hedge accounting.
Hedged swaps are accounted for on an accrual basis.
Foreign currency and rupee derivative contracts entered into for trading purposes are marked to market and the resulting
gain or loss (net of provisions, if any) is accounted for in the profit and loss account. Pursuant to RBI guidelines, any
receivables under derivative contracts which remain overdue for more than 90 days and mark-to-market gains on other
derivative contracts with the same counter-parties are reversed through profit and loss account.

8. Employee Stock Option Scheme (ESOS)

The Employees Stock Option Scheme (the Scheme) provides for grant of equity shares of the Bank to wholetime
directors and employees of the Bank and its subsidiaries. The Scheme provides that employees are granted an option
to subscribe to equity shares of the Bank that vest in a graded manner. The options may be exercised within a specified
period. The Bank follows the intrinsic value method to account for its stock-based employee compensation plans.
Compensation cost is measured as the excess, if any, of the fair market price of the underlying stock over the exercise
price on the grant date. The fair market price is the latest closing price, immediately prior to the grant date, which is
generally the date of the Board of Directors meeting in which the options are granted, on the stock exchange on which
the shares of the Bank are listed. If the shares are listed on more than one stock exchange, then the stock exchange
where there is highest trading volume on the said date is considered.

9. Staff Retirement Benefits

Gratuity
ICICI Bank pays gratuity to employees who retire or resign after a minimum prescribed period of continuous service
and in case of employees at overseas locations as per the rules in force in the respective countries. ICICI Bank makes
contributions to five separate gratuity funds, for employees inducted from erstwhile ICICI Limited (erstwhile ICICI),
employees inducted from erstwhile Bank of Madura Limited (erstwhile Bank of Madura), employees inducted from
erstwhile The Sangli Bank Limited (erstwhile Sangli Bank), employees inducted from erstwhile The Bank of Rajasthan
Limited (erstwhile Bank of Rajasthan) and employees of ICICI Bank other than those inducted from erstwhile ICICI,
erstwhile Bank of Madura, erstwhile Sangli Bank and erstwhile Bank of Rajasthan.
Separate gratuity funds for employees inducted from erstwhile ICICI, erstwhile Bank of Madura, erstwhile Sangli Bank
and erstwhile Bank of Rajasthan are managed by ICICI Prudential Life Insurance Company Limited.
The gratuity fund for employees of ICICI Bank, other than employees inducted from erstwhile ICICI, erstwhile Bank of
Madura, erstwhile Sangli Bank and erstwhile Bank of Rajasthan is administered by Life Insurance Corporation of India
(LIC) and ICICI Prudential Life Insurance Company Limited.
Actuarial valuation of the gratuity liability for all the above funds is determined by an actuary appointed by the Bank.
Actuarial valuation of gratuity liability is determined based on certain assumptions regarding rate of interest, salary
growth, mortality and staff attrition as per the projected unit credit method.
Superannuation Fund
ICICI Bank contributes 15.0% of the total annual basic salary of certain employees to a superannuation fund for ICICI
Bank employees. The employee gets an option on retirement or resignation to commute one-third of the total credit
balance in his/her account and receive a monthly pension based on the remaining balance. In the event of death of an
employee, his or her beneficiary receives the remaining accumulated balance. ICICI Bank also gives an option to its
employees, allowing them to receive the amount contributed by ICICI Bank along with their monthly salary during their
employment.
Upto March 31, 2005, the superannuation fund was administered solely by LIC. Subsequent to March 31, 2005, both LIC and
ICICI Prudential Life Insurance Company Limited are administering separate funds. Employees have the option to decide on
an annual basis, the insurance company for management of that year’s contribution towards superannuation fund.
Pension
The Bank provides for pension, a deferred retirement plan covering certain employees of erstwhile Bank of Madura,
erstwhile Sangli Bank and erstwhile Bank of Rajasthan. The plan provides for pension payment including dearness relief on
a monthly basis to these employees on their retirement based on the respective employee’s years of service with the Bank
and applicable salary. For erstwhile Bank of Madura, erstwhile Sangli Bank and erstwhile Bank of Rajasthan employees in
service, separate pension funds are managed by the trust and the liability is funded as per actuarial valuation. The Bank

F15

schedules

forming part of the Accounts (Contd.)

purchases annuities from LIC and ICICI Prudential Life Insurance Company Limited as part of master policies for payment
of pension to retired employees of erstwhile Bank of Madura, erstwhile Sangli Bank and erstwhile Bank of Rajasthan.
Actuarial valuation of the pension liability for all the above funds is determined by an actuary appointed by the Bank.
Actuarial valuation of pension liability is calculated based on certain assumptions regarding rate of interest, salary
growth, mortality and staff attrition as per the projected unit credit method.
Employees covered by the pension plan are not eligible for employer’s contribution under the provident fund plan.
Provident Fund
ICICI Bank is statutorily required to maintain a provident fund as a part of retirement benefits to its employees. There are
separate provident funds for employees inducted from erstwhile Bank of Madura, erstwhile Sangli Bank, erstwhile Bank
of Rajasthan and for other employees of ICICI Bank. In-house trustees manage these funds. Each employee contributes
12.0% of his or her basic salary (10.0% for certain staff of erstwhile Sangli Bank) and ICICI Bank contributes an equal
amount. The funds are invested according to the rules prescribed by the Government of India.
Actuarial valuation for the interest rate guarantee on the provident fund balances is determined by an actuary appointed
by the Bank.
Leave encashment
The Bank provides for leave encashment benefit, which is a long-term benefit scheme, based on actuarial valuation
conducted by an independent actuary.

10.

Income Taxes
Income tax expense is the aggregate amount of current tax and deferred tax expense incurred by the Bank. The current
tax expense and deferred tax expense is determined in accordance with the provisions of the Income Tax Act, 1961 and
as per Accounting Standard 22 - Accounting for Taxes on Income issued by ICAI, respectively. Deferred tax adjustments
comprise changes in the deferred tax assets or liabilities during the year. Deferred tax assets and liabilities are recognised
on a prudent basis for the future tax consequences of timing differences arising between the carrying values of assets and
liabilities and their respective tax basis, and carry forward losses. Deferred tax assets and liabilities are measured using
tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. The impact of changes
in deferred tax assets and liabilities is recognised in the profit and loss account. Deferred tax assets are recognised and
re-assessed at each reporting date, based upon management’s judgement as to whether their realisation is considered as
reasonably certain.

11.

Impairment of Assets
Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison
of the carrying amount of an asset with future net discounted cash flows expected to be generated by the asset. If
such assets are considered to be impaired, the impairment is recognised by debiting the profit and loss account and is
measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets.

12. Provisions, contingent liabilities and contingent assets

The Bank estimates the probability of any loss that might be incurred on outcome of contingencies on the basis of
information available up to the date on which the financial statements are prepared. A provision is recognised when
an enterprise has a present obligation as a result of a past event and it is probable that an outflow of resources will be
required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based
on management estimates of amounts required to settle the obligation at the balance sheet date, supplemented by
experience of similar transactions. These are reviewed at each balance sheet date and adjusted to reflect the current
management estimates. In cases where the available information indicates that the loss on the contingency is reasonably
possible but the amount of loss cannot be reasonably estimated, a disclosure to this effect is made in the financial
statements. In case of remote possibility neither provision nor disclosure is made in the financial statements. The Bank
does not account for or disclose contingent assets, if any.

13. Earnings per share (EPS)

Basic and diluted earnings per share are computed in accordance with Accounting Standard-20 – Earnings per share.
Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share reflect the potential dilution that could occur if contracts to issue equity shares were exercised
or converted during the year. Diluted earnings per equity share is computed using the weighted average number of
equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive.

14. Lease transactions

Lease payments for assets taken on operating lease are recognised as an expense in the profit and loss account over
the lease term.

15. Cash and cash equivalents

Cash and cash equivalents include cash in hand, balances with RBI, balances with other banks and money at call and short notice.

F16

schedules

forming part of the Accounts (Contd.)

SCHEDULE 18
NOTES FORMING PART OF THE ACCOUNTS
The following additional disclosures have been made taking into account the requirements of Accounting Standards (ASs)
and Reserve Bank of India (RBI) guidelines in this regard

1. Earnings per share

Basic and diluted earnings per equity share are computed in accordance with AS 20 – Earnings per share. Basic earnings
per equity share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding
during the year. The diluted earnings per equity share is computed using the weighted average number of equity shares
and dilutive potential equity shares outstanding during the year.

The following table sets forth, for the periods indicated, the computation of earnings per share.

` in million, except per share data

Year ended

March 31, 2012

March 31, 2011

Basic

Weighted average no. of equity shares outstanding .........................................

1,152,338,322

1,137,988,639

Net profit ..............................................................................................................

Basic earnings per share (`) ...............................................................................

64,652.6

56.11

51,513.8

45.27

Diluted

Weighted average no. of equity shares outstanding .........................................

1,155,591,617

1,143,267,823

Net profit ..............................................................................................................

64,652.6

51,513.8

Diluted earnings per share (`) ............................................................................

Nominal value per share (`) ................................................................................

55.95

10.00

45.06

10.00

The dilutive impact is due to options granted to employees by the Bank.

2. Business/information ratios

The following table sets forth, for the periods indicated, the business/information ratios.

(i)

Interest income to working funds1 ............................................................

(ii) Non-interest income to working funds1 ....................................................

(iii) Operating profit to working funds1 ............................................................

(iv) Return on assets2 ........................................................................................

(v)

Profit per employee3 (` in million) .............................................................

(vi) Business (average deposits plus average advances)

per employee3, 4 (` in million) .....................................................................

Year ended
March 31, 2012

Year ended
March 31, 2011

7.79%

1.74%

2.41%

1.50%

1.1

70.8

6.80%

1.74%

2.37%

1.35%

1.0

73.5

3.
4.

For the purpose of computing the ratio, working funds represent the average of total assets as reported in Form X to RBI under
Section 27 of the Banking Regulation Act, 1949.
For the purpose of computing the ratio, assets represent average of total assets as reported in Form X to RBI under Section 27 of
the Banking Regulation Act, 1949.
The number of employees includes sales executives, employees on fixed term contracts and interns.
The average deposits and the average advances represent the simple average of the figures reported in Form A to RBI under
Section 42(2) of the Reserve Bank of India Act, 1934.

3. Capital adequacy ratio

The Bank is subject to the Basel II capital adequacy guidelines stipulated by RBI with effect from March 31, 2008. The RBI
guidelines on Basel II require the Bank to maintain a minimum capital to risk-weighted assets ratio (CRAR) of 9.0% and a
minimum Tier I CRAR of 6.0% on an ongoing basis.

F17

schedules

forming part of the Accounts (Contd.)

RBI has also stipulated that banks shall maintain capital at higher of the minimum capital required as per Basel II or 80%
of the minimum capital requirement under Basel I. At March 31, 2012, the prudential floor at 80% of the minimum capital
requirement under Basel I was ` 332,499.0 million and was lower than the minimum capital requirement of ` 358,727.2
million under Basel II. Hence, the Bank has maintained capital adequacy at March 31, 2012 as per the Basel II norms.

The following table sets forth, for the dates indicated, computation of capital adequacy.

Tier I capital ..............................................................
Lower Tier I ...............................................................
Tier II capital .............................................................
Upper Tier II ..............................................................
Lower Tier II subordinated debt ............................
Total capital ...............................................................
Total risk weighted assets .......................................
CRAR (%) ..................................................................
CRAR – Tier I capital (%) ..........................................

CRAR – Tier II capital (%) .......................................
Amount raised by issue of Innovative Perpetual
Debt Instruments (IPDI) during the year ..............
Amount raised by issue of upper Tier II
Instruments during the year ..................................
Amount of subordinated debt raised as Tier II
capital during the year ...........................................

As per Basel I framework

As per Basel II framework

At
March 31, 2012

At
March 31, 2011

At
March 31, 2012

At
March 31, 2011

` in million

512,158.7
30,254.9
238,563.6
143,889.5
155,206.3
750,722.3
4,618,042.1
16.26%
11.09%
5.17%

—

463,987.9
28,116.1
231,007.0
138,248.5
155,836.3
694,994.9
3,942,191.1
17.63%
11.77%
5.86%

—

505,182.8
30,254.9
232,946.4
143,889.5
155,206.3
738,129.2
3,985,857.8
18.52%
12.68%
5.84%

—

449,749.1
28,116.1
217,501.5
138,248.5
155,836.3
667,250.6
3,414,979.5
19.54%
13.17%
6.37%

—

16,000.0

59,790.01

16,000.0

59,790.01

Includes an issuance of ` 25,000.0 million, wherein the funds were received in March 2010 but were not considered
for Tier II capital pending allotment.

Information about business and geographical segments

Business Segments
Pursuant to the guidelines issued by RBI on Accounting Standard 17 – (Segment Reporting) - Enhancement of Disclosures
dated April 18, 2007, effective from year ended March 31, 2008, the following business segments have been reported.

(cid:120)

Retail Banking includes exposures which satisfy the four criteria of orientation, product, granularity and low value
of individual exposures for retail exposures laid down in Basel Committee on Banking Supervision document
“International Convergence of Capital Measurement and Capital Standards: A Revised Framework”.

(cid:120) Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, which are

(cid:120)
(cid:120)

not included under Retail Banking.

Treasury includes the entire investment portfolio of the Bank.

Other Banking includes hire purchase and leasing operations and other items not attributable to any particular
business segment.

Income, expenses, assets and liabilities are either specifically identified with individual segments or are allocated to
segments on a systematic basis.

All liabilities are transfer priced to a central treasury unit, which pools all funds and lends to the business units at appropriate
rates based on the relevant maturity of assets being funded after adjusting for regulatory reserve requirements.

The transfer pricing mechanism of the Bank is periodically reviewed. The segment results are determined based on the
transfer pricing mechanism prevailing for the respective reporting periods.

F18

schedules

forming part of the Accounts (Contd.)

The following tables set forth, for the periods indicated, the business segment results on this basis.

Particulars

Retail
Banking

For the year ended March 31, 2012
Wholesale
Banking

Treasury

Revenue .......................................................................
1
Less: Inter-segment revenue
2
Total revenue (1)–(2) ....................................................
3
Segment results ..........................................................
4
Unallocated expenses .................................................
5
Operating profit (4)-(5) ................................................
6
Income tax expenses (including deferred tax) ...........
7
Net profit (6)-(7) ..........................................................
8
9
Segment assets ...........................................................
10 Unallocated assets1 .....................................................
11
Total assets (9)+(10) ...................................................
12 Segment liabilities ......................................................
13 Unallocated liabilities ..................................................
14
Total liabilities (12)+(13) ............................................
15 Capital expenditure .....................................................
16 Depreciation ................................................................
1.
2.

197,112.7

261,713.1

301,414.2

5,499.9

62,077.3

20,806.8

697,767.7 1,940,355.9

2,015,063.1

1,766,275.9

876,508.2 2,083,589.82

462.7
1,236.3
Includes tax paid in advance/tax deducted at source (net) and deferred tax asset (net).
Includes share capital and reserves and surplus.

3,215.5
3,544.7

6.2
21.2

For the year ended March 31, 2011

Particulars

Retail
Banking

Wholesale
Banking

Treasury

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
1.
2.

48,997.0

(5,141.9)

193,232.7

159,734.9

Revenue .......................................................................
Less: Inter-segment revenue ......................................
Total revenue (1)–(2) ....................................................
Segment results ..........................................................
Unallocated expenses .................................................
Operating profit (4)-(5) ................................................
Income tax expenses (net of deferred tax credit) ......
Net profit (6)-(7) ..........................................................
Segment assets ...........................................................
Unallocated assets1 .....................................................
Total assets (9)+(10) ...................................................
Segment liabilities ......................................................
Unallocated liabilities ..................................................
Total liabilities (12)+(13) ............................................
7,749.5
Capital expenditure .....................................................
Depreciation ................................................................
1,307.3
Includes tax paid in advance/tax deducted at source (net) and deferred tax asset (net).
Includes share capital and reserves and surplus.

668,933.1 1,600,956.9

13,467.8
3,478.5

1,543,417.3

795,560.7

237,441.8

22,006.9

1,715,322.5

1,717,399.32

206.3
21.8

Geographical segments
The Bank reports its operations under the following geographical segments.
(cid:120)
Domestic operations comprise branches in India
(cid:120)
Foreign operations comprise branches outside India and offshore banking unit in India.
The following table sets forth, for the periods indicated, geographical segment revenues.

Revenue

Domestic operations ............................................................................................
Foreign operations ................................................................................................
Total ......................................................................................................................
The following table sets forth, for the periods indicated, geographical segment assets.

Year ended
March 31, 2012
366,126.5
44,327.6
410,454.1

Assets

Domestic operations ............................................................................................
Foreign operations ...............................................................................................
Total ......................................................................................................................

At
March 31, 2012
3,828,815.6
848,040.6
4,676,856.2

` in million

Total

Other
Banking
Business
2,821.8

(349.7)

763,061.8
352,607.7
410,454.1
88,034.3
—
88,034.3
23,381.7
64,652.6
23,669.5 4,676,856.2
59,614.7
4,736,470.9
6,493.7 4,732,867.6
3,603.3
4,736,470.9
3,688.8
5,245.3

4.4
443.1

` in million

Total

Other
Banking
Business
4,303.1

1,745.0

594,712.5
268,493.0
326,219.5
67,607.0
—
67,607.0
16,093.2
51,513.8
14,616.3 3,999,828.8
62,507.9
4,062,336.7
4,986.3 4,061,363.6
973.1
4,062,336.7
21,529.2
5,624.4

105.6
816.8

` in million

Year ended
March 31, 2011
286,909.7
39,309.8
326,219.5

` in million
At
March 31, 2011
3,303,115.9
697,435.3
4,000,551.2

F19

schedules

forming part of the Accounts (Contd.)

The following table sets forth, for the periods indicated, capital expenditure and depreciation thereon for the geographical
segments.

Capital expenditure incurred during

Depreciation provided during

Year ended
March 31, 2012
3,616.0
72.8
3,688.8

Year ended
March 31, 2011
21,484.5
44.7
21,529.2

Year ended
March 31, 2012
5,211.8
33.5
5,245.3

Year ended
March 31, 2011
5,590.1
34.3
5,624.4

` in million

Domestic operations ........................
Foreign operations ...........................
Total ..................................................

5. Maturity pattern

In compiling the information of maturity pattern, certain estimates and assumptions have been made by the management.
Assets and liabilities in foreign currency exclude off-balance sheet assets and liabilities.

(cid:120)
(cid:120)
The following table sets forth, the maturity pattern of assets and liabilities of the Bank at March 31, 2012.

Maturity buckets

Loans &
Advances 2

Investment
securities2

Day 11 .................................................
2 to 7 days1 ........................................
8 to 14 days1 ......................................
15 to 28 days .....................................
29 days to 3 months ..........................
3 to 6 months .....................................
6 months to 1 year ............................
1 to 3 years ........................................
3 to 5 years ........................................
Above 5 years ....................................
Total ...................................................
1.

` in million
Total foreign
Deposits2 Borrowings2,3 Total foreign
currency
currency
liabilities
assets
2,688.8
30,222.0
9,310.3
69,821.6
7,216.8
10,671.6
25,492.3
21,209.7
114,905.9
67,038.9
129,864.6
73,969.8
241,781.4
95,326.5
197,466.2
172,330.3
140,532.7
147,925.4
254,969.4
151,621.8
943,485.2 1,020,880.8
The aforesaid disclosure is in accordance with the revised maturity buckets as per the RBI circular no. DBOD.BP.BC.22/21.04.018/2009-10
dated July 1, 2009.
Includes foreign currency balances.
Includes borrowings in the nature of subordinated debts and preference shares as per RBI guidelines vide circular no. DBOD.BP.BC no.
81/21.01.002/2009-10.

—
174,543.1
2,543.6
26,841.4
80,937.6
141,606.5
223,622.4
173,520.5
197,146.0
380,888.0
2,537,276.6 1,595,600.4 2,554,999.6 1,401,649.1

7,738.5
13,041.4
13,191.0
39,001.7
142,209.3
188,828.5
336,379.4
1,043,883.5
388,469.1
364,534.2

35,284.9
217,729.6
49,505.7
95,723.5
77,392.4
87,627.9
149,466.7
245,244.2
152,923.0
484,702.5

19,792.9
44,612.6
54,744.2
97,134.4
273,131.8
288,254.6
452,112.8
690,126.6
228,550.3
406,539.4

2.
3.

The following table sets forth the maturity pattern of assets and liabilities of the Bank at March 31, 2011.

Maturity buckets

Loans &
Advances2

Investment
securities2

` in million
Total foreign
currency
liabilities
35,628.8
6,388.6
8,654.3
16,578.0
78,777.9
114,994.8
153,395.3
202,968.1
80,851.3
138,821.6
837,058.7
The aforesaid disclosure is in accordance with the revised maturity buckets as per the RBI circular no. DBOD.
BP.BC.22/21.04.018/2009-10 dated July 1, 2009.
Includes foreign currency balances.
Includes borrowings in the nature of subordinated debts and preference shares as per RBI guidelines vide circular no. DBOD.
BP.BC no. 81/21.01.002/2009-10.

913.1
3,028.3
7,270.2
23,284.7
92,328.3
108,229.9
138,828.8
229,022.1
110,920.2
381,717.2
2,163,659.0 1,346,859.6 2,256,021.1 1,095,542.8

Deposits2 Borrowings2,3 Total foreign
currency
assets
57,011.6
27,144.3
11,484.9
13,578.6
58,021.5
29,419.1
53,188.7
214,539.8
131,949.7
170,112.0
766,450.2

45,279.5
49,614.9
63,935.7
18,462.6
54,938.5
24,073.6
64,625.1
92,754.3
212,721.9
96,887.8
178,717.0
76,649.1
120,666.5
374,534.2
359,736.2 1,177,196.9
33,946.6
106,907.7
50,125.7
401,106.8

9,280.7
12,637.9
14,881.9
26,058.4
149,170.8
190,491.4
260,740.5
889,201.1
342,603.1
268,593.1

2.
3.

F20

schedules

forming part of the Accounts (Contd.)

6. Preference shares

Certain government securities amounting to ` 2,578.1 million at March 31, 2012 (March 31, 2011: ` 2,563.8 million) have
been earmarked against redemption of preference shares issued by the Bank, which fall due for redemption on April 20,
2018, as per the original issue terms.

7. Employee Stock Option Scheme (ESOS)

In terms of the ESOS, as amended, the maximum number of options granted to any eligible employee in a financial year
shall not exceed 0.05% of the issued equity shares of the Bank at the time of grant of the options and aggregate of all
such options granted to the eligible employees shall not exceed 5% of the aggregate number of the issued equity shares
of the Bank on the date(s) of the grant of options. Under the stock option scheme, eligible employees are entitled to apply
for equity shares. Options granted for fiscal 2003 and earlier years vest in a graded manner over a three-year period, with
20%, 30% and 50% of the grants vesting in each year commencing from the end of 12 months from the date of grant.
Options granted from fiscal 2004 vest in a graded manner over a four-year period, with 20%, 20%, 30% and 30% of the
grants vesting in each year commencing from the end of 12 months from the date of grant. Options granted in April 2009
vest in a graded manner over a five year period with 20%, 20%, 30% and 30% of grant vesting each year, commencing
from the end of 24 months from the date of grant. Options granted in September, 2011 vest in a graded manner over a
five years period with 15%, 20%, 20% and 45% of grant vesting each year, commencing from the end of 24 months from
the date of the grant. The options can be exercised within 10 years from the date of grant or five years from the date of
vesting, whichever is later. As per the scheme, the exercise price of ICICI Bank’s options is the last closing price on the
stock exchange, which recorded highest trading volume preceding the date of grant of options. Hence, there was no
compensation cost based on intrinsic value of options.

In February, 2011, the Bank granted 3,035,000 options to eligible employees and whole-time Directors of ICICI Bank and
certain of its subsidiaries at an exercise price of ` 967. Of these options granted, 50% would vest on April 30, 2014 and
the balance 50% would vest on April 30, 2015. The options can be exercised within 10 years from the date of grant or
five years from the date of vesting, whichever is later. Based on intrinsic value of options, compensation cost of ` 21.0
million was recognised during the year ended March 31, 2012 (March 31, 2011 ` 2.9 million).

If ICICI Bank had used the fair value of options based on binomial tree model, compensation cost in the year ended
March 31, 2012 would have been higher by ` 1,816.1 million and proforma profit after tax would have been ` 62.83
billion. On a proforma basis, ICICI Bank’s basic and diluted earnings per share would have been ` 54.52 and ` 54.37
respectively. The key assumptions used to estimate the fair value of options granted during the year ended March 31,
2012 are given below.

Risk-free interest rate ...................................................................................................................

7.99% to 9.07%

Expected life ................................................................................................................................
Expected volatility .......................................................................................................................

6.35 to 6.98 years
47.53% to 49.20%

Expected dividend yield ..............................................................................................................

1.26% to 1.60%

The weighted average fair value of options granted during the year ended March 31, 2012 is ` 592.52 per option
(March 31, 2011: ` 535.87).

A summary of the status of the Bank’s stock option plan is given below.

Particulars

` except number of options

Stock options outstanding

Year ended March 31, 2012

Year ended March 31, 2011

Number of
options

Weighted
Average
Exercise Price

Number of
options

Weighted
Average
Exercise Price

Outstanding at the beginning of the year ..........................

20,529,387

779.72

18,763,460

Add: Granted during the year .............................................

4,060,600

1,104.82

Less: Lapsed during the year, net of re-issuance1 ...............

Less: Exercised during the year .........................................

448,372

942,070

Outstanding at the end of the year ......................................

23,199,545

Options exercisable .............................................................

12,019,655

798.77

510.94

846.94

745.26

5,514,600

1,005,536

2,743,137

20,529,387

10,197,137

689.50

972.00

871.95

517.21

779.72

682.72

In terms of the Scheme, 23,199,545 options (March 31, 2011: 20,529,387 options) granted to eligible employees were
outstanding at March 31, 2012.

F21

schedules

forming part of the Accounts (Contd.)

A summary of stock options outstanding at March 31, 2012 is given below.

Range of exercise price (` per share)

Number of shares
arising out of options

Weighted average
exercise price
(` per share)

Weighted average
remaining contractual
life (Number of years)

105-299 ..................................................................

28,925

300-599 ..................................................................

6,048,620

600-999 ..................................................................

13,122,000

132.05

471.10

942.79

1,000-1,399 ............................................................

4,000,000

1,106.03

1.07

4.35

6.80

9.04

A summary of stock options outstanding at March 31, 2011 is given below.

Range of exercise price (` per share)

Number of shares
arising out of
options

Weighted average
exercise price
(` per share)

Weighted average
remaining contractual
life (Number of years)

105-299 ..................................................................

95,086

300-599 ..................................................................

6,906,951

600-999 ..................................................................

13,426,350

137.13

466.85

942.54

1,000-1,399 ............................................................

101,000

1,084.59

1.07

5.30

7.78

7.94

The options were exercised regularly throughout the period and weighted average share price as per NSE price volume
data during the year ended March 31, 2012 was ` 922.76 (March 31, 2011: ` 1,014.96).

8. Reconciliation of nostro account

In terms of RBI circular no. DBOD.BP.BC.No.133/21.04.018/2008-09 dated May 11, 2009, ` 3.2 million (March 31, 2011:
` 2.6 million) representing outstanding credit balances of individual value less than US$ 2,500 or equivalent lying in
nostro account, which were originated up to March 31, 2002, was transferred to profit and loss account during the year
ended March 31, 2012 and has been subsequently appropriated to General Reserve.

9. Subordinated debt

During the year ended March 31, 2012, the Bank raised subordinated debt qualifying for Tier II capital amounting to
` 16,000.0 million. The following table sets forth, the details of these bonds.

Particulars

Date of Issue

Coupon Rate (%)

Tenure

` in million
Amount

Lower Tier II ................................................

March 16, 2012 9.20% (semi-annually)

6 years

16,000.0

Total ............................................................

16,000.0

During the year ended March 31, 2011, the Bank raised subordinated debt qualifying for Tier II capital amounting to `
59,790.0 million. The following table sets forth, the details of these bonds.

Particulars

Date of Issue

Coupon Rate (%)

Tenure

` in million
Amount

Lower Tier II ................................................

April 05, 2010

8.88%(semi-annually)

10 years

25,000.01

Lower Tier II ................................................ September 29, 2010

8.90% (annually)

15 years

14,790.0

Lower Tier II ................................................

January 13, 2011

9.11% (annually)

10 years

20,000.0

During the year ended March 31, 2010, Bank had raised an amount of ` 25,000.0 million towards application money on subordinated
debt bonds which was pending for allotment at March 31, 2010 and was subsequently allotted on April 5, 2010.

59,790.0

Total

F22

schedules

forming part of the Accounts (Contd.)

10. Repurchase transactions

The following table sets forth, the details of securities sold and purchased under repo and reverse repo transactions
respectively including transactions under Liquidity Adjustment Facility (LAF).

Government Securities ........................................
Corporate Debt Securities ....................................

Securities sold under Repo and LAF
i)
ii)
Securities purchased under Reverse Repo and LAF
i)
ii)

Government Securities ........................................
Corporate Debt Securities ....................................

Minimum
outstanding
balance
during the

Maximum
outstanding
balance
during the

Daily average
outstanding
balance
during the

Year ended March 31, 2012

` in million
Outstanding
balance at
March 31,
2012

1.3
—

—
—

169,551.0
645.0

36,750.0
—

67,461.6
5.3

1,524.6
—

169,551.0
—

2,630.0
—

Amounts reported are based on face value of securities under repo and reverse repo and LAF.

The following table sets forth, the details of securities sold and purchased under repo and reverse repo.

Government Securities .......................................
Corporate Debt Securities ...................................

Securities sold under Repo
i)
ii)
Securities purchased under Reverse Repo
i)
ii)

Government Securities .......................................
Corporate Debt Securities ...................................

Minimum
outstanding
balance
during the

Maximum
outstanding
balance
during the

Daily average
outstanding
balance
during the

Year ended March 31, 2011

` in million
Outstanding
balance at
March 31,
2011

1.1
—

—
—

214,553.6
—

7,817.1
250.0

41,177.3
—

282.2
3.4

1.2
—

124.0
—

Amounts reported are based on face value of securities under repo and reverse repo.

The transactions with RBI under LAF are accounted for as borrowing and lending transactions from the three months
ended March 31, 2012. If the Bank had continued to account for LAF transactions as “sale and purchase” at March 31,
2012, the investments would have been lower by ` 168,000.0 million and the borrowings would have been lower by
` 168,000.0 million.

11. Investments

The following table sets forth, for the periods indicated, the details of investments and the movement of provision held
towards depreciation on investments of the Bank.

Particulars

1.
(i)

(ii)

Value of Investments
Gross value of investments
a)
In India ....................................................................................................
b) Outside India ...........................................................................................
Provision for depreciation
a)
In India ....................................................................................................
b) Outside India ...........................................................................................

(iii) Net value of investments

In India ....................................................................................................
a)
b) Outside India ...........................................................................................

2. Movement of provisions held towards depreciation on investments
(i)
Opening balance ...........................................................................................
(ii) Add: Provisions made during the year ........................................................
Less: Write-off/(write back) of excess provisions during the year ..............
(iii)
(iv) Closing balance .............................................................................................

At
March 31, 2012

` in million
At
March 31, 2011

1,539,777.2
81,826.4

(25,565.7)
(437.5)

1,514,211.5
81,388.9

20,064.1
8,129.7
(2,190.6)
26,003.2

1,272,423.9
94,499.8

(19,483.1)
(581.0)

1,252,940.8
93,918.8

12,161.1
8,612.71
(709.7)
20,064.1

Includes provision created at the time of acquisition of investments from erstwhile The Bank of Rajasthan on amalgamation.

F23

schedules

forming part of the Accounts (Contd.)

12. Investment in securities, other than government and other approved securities (Non-SLR investments)

Issuer composition of investments in securities, other than government and other approved securities

The following table sets forth, the issuer composition of investments of the Bank in securities, other than government
and other approved securities at March 31, 2012.

Sr.
No.

Issuer

Amount

Extent of
private
placement3
(a)

Extent of ‘below
investment grade’
securities
(b)

Extent of
‘unrated’
securities4,5
(c)

PSUs .......................................................
FIs ...........................................................
Banks ......................................................
Private corporates .................................
Subsidiaries/Joint ventures ..................
Others6,7,8 ................................................
Provision held towards depreciation ....
Total .......................................................

48,803.2
28,032.9
118,691.4
163,469.5
136,753.3
250,651.9
(24,589.7)
721,812.5

45,156.0
21,649.8
107,676.0
143,623.3
—
39,950.8
—
358,055.9

—
—
809.4
283.1
—
25,568.7
—
26,661.2

—
—
—
6,944.0
—
—
—
6,944.0

` in million
Extent of
‘unlisted’
securities4,5
(d)

9.6
—
—
14,521.8
—
—
—
14,531.4

Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.
Collateralised debt obligations securities have been included in the above data based on the arranger of such instruments.
Includes ` 2,619.0 million of application money towards corporate bonds/debentures.
Excludes investments, amounting to ` 7,086.1 million, in preference shares of subsidiaries and ` 5,092.1 million in subordinated
bonds of subsidiaries, namely ICICI Bank UK PLC and ICICI Bank Canada.
Excludes equity shares, units of equity-oriented mutual fund, units of venture capital fund, pass through certificates, security receipts,
commercial papers, certificates of deposit, unlisted convertible debentures and securities acquired by way of conversion of debt.
Other investments include deposits under RIDF/RHDF deposit schemes amounting to ` 181,025.1 million.
Excludes investments in non-Indian government securities by overseas branches amounting to ` 4,402.4 million.
Others include non-SLR Indian government securities of ` 96.1 million.

The following table sets forth, the issuer composition of investments of the Bank in securities, other than government
and other approved securities at March 31, 2011.

Sr.
No.

Issuer

Amount

PSUs ......................................................
FIs ..........................................................
Banks .....................................................
Private corporates ................................
Subsidiaries/Joint ventures .................
Others 6,7,8 ..............................................
Provision held towards depreciation ...
Total ......................................................

20,171.7
13,505.6
113,605.3
177,554.6
135,463.8
254,175.9
(17,900.7)
696,576.2

Extent of
private
placement3
(a)
12,613.0
10,250.0
79,810.7
152,122.0
—
44,898.0
—
299,693.7

Extent of ‘below
investment grade’
securities
(b)
—
—
2,069.1
283.0
—
31,934.5
—
34,286.6

Extent of
‘unrated’
securities4,5
(c)
—
—
3,601.2
9,761.4
—
—
—
13,362.6

` in million
Extent of
‘unlisted’
securities4,5
(d)
14.4
—
8,488.4
17,828.9
—
—
—
26,331.7

Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.
Collateralised debt obligations securities have been included in the above data based on the arranger of such instruments.
Includes ` 900.0 million of application money towards corporate bonds/debentures.
Excludes investments amounting to ` 6,359.0 million, in preference shares of subsidiaries and ` 4,529.8 million in subordinated
bonds of subsidiaries, namely ICICI Bank UK PLC and ICICI Bank Canada.
Excludes equity shares, units of equity-oriented mutual fund, units of venture capital fund, pass through certificates, security
receipts, commercial papers, certificates of deposit, unlisted convertible debentures and securities acquired by way of conversion
of debt.
Other investments include deposits under RIDF/RHDF deposit schemes amounting to ` 150,795.6 million.
Excludes investments in non-Indian government securities by overseas branches amounting to ` 8,862.3 million.
Others include non-SLR Indian government securities of ` 191.3 million.

1
2
3
4
5
6
7

1.
2.
3.
4.

6.
7.
8.

1
2
3
4
5
6
7

1.
2.
3.
4.

6.
7.
8.

F24

schedules

forming part of the Accounts (Contd.)

ii) Non-performing investments in securities, other than government and other approved securities

The following table sets forth, for the periods indicated, the movement in gross non-performing investments in
securities, other than government and other approved securities.

Particulars

Opening balance ...................................................................................................

Additions during the year .....................................................................................

Reduction during the year ....................................................................................

Closing balance .....................................................................................................

Total provision held ...............................................................................................

Year ended

` in million
Year ended

March 31, 2012

March 31, 2011

4,923.8

1,790.9

(1,286.3)

5,428.4

4,606.3

5,219.3

1,024.5

(1,320.0)

4,923.8

4,302.2

13. Sales and transfers of securities to/from Held to Maturity (HTM) category

During the year ended March 31, 2012, the value of sales and transfers of securities to/from HTM category (excluding
one time transfer of securities to/from HTM category with the approval of Board of Directors permitted to be undertaken
by banks at the beginning of the accounting year and sale to RBI under pre-announced Open Market Operation auctions)
have not exceeded 5% of the book value of the investments held in HTM category at the beginning of the year.

14. CBLO transaction

Collateralised Borrowing and Lending Obligation (CBLO) is a discounted money market instrument, developed by The
Clearing Corporation of India Limited (CCIL) and approved by RBI, which involves secured borrowings and lending
transactions. At March 31, 2012, the Bank had outstanding borrowings amounting to Nil (March 31, 2011: Nil) and
outstanding lending of Nil (March 31, 2011: ` 1,999.6 million) in the form of CBLO. The amortised book value of securities
given as collateral by the Bank to CCIL for availing the CBLO facility was ` 22,491.9 million at March 31, 2012 (March 31,
2011: ` 51,841.1 million).

15. Derivatives

ICICI Bank is a major participant in the financial derivatives market. The Bank deals in derivatives for balance sheet
management and market making purposes whereby the Bank offers derivative products to its customers, enabling them
to hedge their risks.

Dealing in derivatives is carried out by identified groups in the treasury of the Bank based on the purpose of the transaction.
Derivative transactions are entered into by the treasury front office. Treasury middle office conducts an independent
check of the transactions entered into by the front office and also undertakes activities such as confirmation, settlement,
accounting, risk monitoring and reporting and ensures compliance with various internal and regulatory guidelines.

The market making and the proprietary trading activities in derivatives are governed by the Investment Policy and
Derivative policy of the Bank, which lays down the position limits, stop loss limits as well as other risk limits. The Risk
Management Group (RMG) lays down the methodology for computation and monitoring of risk. The Risk Committee
of the Board (RCB) reviews the Bank’s risk management policy in relation to various risks including credit and recovery
policy, investment policy, derivative policy, ALM policy and operational risk management policy. The RCB comprises
independent directors and the Managing Director and CEO.

The Bank measures and monitors risk of its derivatives portfolio using such risk metrics as Value at Risk (VAR), stop
loss limits and relevant greeks for options. Risk reporting on derivatives, forms an integral part of the management
information system.

The use of derivatives for hedging purposes is governed by the hedge policy approved by Asset Liability Management
Committee (ALCO). Subject to prevailing RBI guidelines, the Bank deals in derivatives for hedging fixed rate, floating
rate or foreign currency assets/liabilities. Transactions for hedging and market making purposes are recorded separately.
For hedge transactions, the Bank identifies the hedged item (asset or liability) at the inception of the hedge itself. The
effectiveness is assessed at the time of inception of the hedge and periodically thereafter.

Hedge derivative transactions are accounted for pursuant to the principles of hedge accounting. Derivatives for market
making purpose are marked to market and the resulting gain/loss is recorded in the profit and loss account. The premium
on option contracts is accounted for as per Foreign Exchange Dealers Association of India (FEDAI) guidelines.

Derivative transactions are covered under International Swaps and Derivatives Association (ISDA) master agreements
with the respective counter parties. The exposure on account of derivative transactions is computed as per RBI guidelines
and is marked against the credit limits approved for the respective counter-parties.

F25

3
4

3.
4.
5.
6.

schedules

forming part of the Accounts (Contd.)

The following table sets forth the details of derivative positions at March 31, 2012.

Sr.
No.

Particulars

Derivatives (Notional principal amount)
a) For hedging .............................................................................................
b) For trading ..............................................................................................
Marked to market positions3
a) Asset (+) .................................................................................................
b) Liability (-) ...............................................................................................
Credit exposure4 .........................................................................................
Likely impact of one percentage change in interest rate (100*PV01)5
a) On hedging derivatives6 .........................................................................
b) On trading derivatives ............................................................................
Maximum and minimum of 100*PV01 observed during the year
a) On hedging6
Maximum ................................................................................................
Minimum .................................................................................................
b) On trading
Maximum ................................................................................................
Minimum .................................................................................................

` in million

At March 31, 2012

Currency
derivatives1

Interest rate
derivatives 2

5,062.2
1,214,603.2

312,533.7
2,446,693.6

59,517.3
(46,244.0)
118,689.8

45.3
1,038.9

(1.3)
(50.8)

(620.3)
(1,270.0)

28,323.4
(26,520.7)
80,110.9

11,751.7
2,752.9

(9,523.0)
(13,444.8)

2,956.8
(1,899.8)

Exchange traded and Over the Counter (OTC) options, cross currency interest rate swaps and currency futures are included in
currency derivatives.
Interest rate swaps, forward rate agreements, swaptions and exchange traded interest rate derivatives are included in interest rate
derivatives.
For trading portfolio including accrued interest. Represents net positions.
Includes accrued interest and has been computed based on Current Exposure method.
Amounts given are absolute values on a net basis, excluding options.
The swap contracts entered into for hedging purpose would have an opposite and offsetting impact with the underlying on-balance
sheet items.

The following table sets forth the details of derivative positions at March 31, 2011.

Sr.
No.

Particulars

3
4

Derivatives (Notional principal amount)
a) For hedging ............................................................................................
b) For trading .............................................................................................
Marked to market positions3
a) Asset (+) ................................................................................................
b) Liability (-) ..............................................................................................

Credit exposure4 ........................................................................................
Likely impact of one percentage change in interest rate (100*PV01)5
a) On hedging derivatives6 ........................................................................
b) On trading derivatives ...........................................................................
Maximum and minimum of 100*PV01 observed during the year
a) On hedging6
Maximum ...............................................................................................
Minimum ................................................................................................
b) On trading
Maximum ...............................................................................................
Minimum ................................................................................................

` in million

At March 31, 2011

Currency
derivatives1

Interest rate
derivatives 2

4,105.4
1,316,079.5

279,739.8
3,866,544.9

53,618.2
(46,478.2)

120,177.9

39.8
854.4

(39.8)
(69.1)

(802.2)
(1,532.5)

40,802.3
(40,823.7)

96,389.0

9,828.1
1,898.0

(6,126.5)
(10,546.1)

5,407.4
1,572.2

1.
2.

3.
4.
5.
6.

Exchange traded and OTC options, cross currency interest rate swaps and currency futures are included in currency derivatives.
Interest rate swaps, forward rate agreements, swaptions and exchange traded interest rate derivatives are included in interest rate
derivatives.
For trading portfolio including accrued interest. Represents net positions.
Includes accrued interest and has been computed based on Current Exposure method.
Amounts given are absolute values on a net basis, excluding options.
The swap contracts entered into for hedging purpose would have an opposite and offsetting impact with the underlying on-balance
sheet items.

F26

schedules

forming part of the Accounts (Contd.)

The Bank has exposure in credit derivative instruments including credit default swaps, credit linked notes, collateralised
debt obligations and principal protected structures. The notional principal amount of these credit derivatives outstanding
at March 31, 2012 was Nil (March 31, 2011: ` 10,599.7 million) in funded instruments and ` 10,349.9 million (March 31,
2011: ` 28,168.2 million) in non-funded instruments which includes Nil (March 31, 2011: ` 223.0 million) of protection
bought by the Bank.

The profit and loss impact on the above portfolio on account of mark-to-market and realised profit/losses during the
year ended March 31, 2012 was net profit of ` 561.0 million (March 31, 2011: ` 94.6 million). At March 31, 2012, the
total outstanding mark-to-market position of the above portfolio was a net loss of ` 59.6 million (March 31, 2011: ` 527.9
million). The credit derivatives are marked to market by the Bank based on counter-party valuation quotes, or internal
models using inputs from market sources such as Bloomberg/Reuters, counter-parties and FIMMDA.

The Bank offers deposits to customers of its offshore branches with structured returns linked to interest, forex, credit or
equity benchmarks. The Bank covers these exposures in the inter-bank market. At March 31, 2012, the net open position
on this portfolio was Nil (March 31, 2011: Nil) with mark-to-market gain of ` 24.8 million (March 31, 2011: ` 27.8 million).
The profit and loss impact on account of mark-to-market and realised profit and loss during the year ended March 31,
2012 was a net loss of ` 5.2 million.
The notional principal amount of forex contracts classified as non-trading at March 31, 2012 amounted to ` 745,722.2
million (March 31, 2011: ` 340,828.8 million). For these non-trading forex contracts, at March 31, 2012, marked to market
positions was asset of ` 22,528.9 million (March 31, 2011: ` 2,532.0 million) and liability of ` 12,843.6 million (March 31,
2011: ` 7,333.8 million), credit exposure of ` 42,639.4 million (March 31, 2011: ` 10,873.7 million) and likely impact of one
percentage change in interest rate (100*PV01) was ` (81.6) million (March 31, 2011: ` (9.6) million).
The notional principal amount of forex contracts classified as trading at March 31, 2012 amounted to ` 2,814,328.7
million (March 31, 2011: ` 2,127,789.6 million). For these trading forex contracts, at March 31, 2012, marked to market
position was asset of ` 70,164.7 million (March 31, 2011: ` 39,289.0 million) and liability of ` 66,449.6 million (March 31,
2011: ` 33,916.3 million), credit exposure of ` 135,371.9 million (March 31, 2011: ` 92,213.9 million) and likely impact
of one percentage change in interest rate (100*PV01) was ` (90.1) million (March 31, 2011: ` (45.4) million). The net
overnight open position at March 31, 2012 was ` 299.1 million (March 31, 2011: ` 502.1 million).

16. Exchange traded interest rate derivatives and currency options

Exchange traded interest rate derivatives

The following table sets forth, for the periods indicated, the details of exchange traded interest rate derivatives.

Particulars

Notional principal amount of exchange traded interest rate derivatives
undertaken during the year (instrument-wise)

a) Euro dollar futures ....................................................................................

b) Treasury note futures – 10 years .............................................................

c) Treasury note futures – 5 years ...............................................................

d) Treasury note futures – 2 years ...............................................................

e) NSE – GOI Bond futures ...........................................................................

ii)

Notional principal amount of exchange traded interest rate derivatives
outstanding (instrument-wise)

a) Euro dollar futures ....................................................................................

b) Treasury note futures – 10 years .............................................................

c) Treasury note futures – 5 years ...............................................................

d) Treasury note futures – 2 years ...............................................................

e) NSE – GOI Bond futures ..........................................................................

iii) Notional principal amount of exchange traded interest rate derivatives

outstanding and not “highly effective ” .......................................................

iv) Mark-to-market value of exchange traded interest rate derivatives

outstanding and not “highly effective” .........................................................

` in million

At
March 31, 2012

At
March 31, 2011

—

N.A.

—

N.A.

F27

schedules

forming part of the Accounts (Contd.)

Exchange traded currency options

The following table sets forth, for the periods indicated, the details of exchange traded currency options.

Particulars

` in million
At
March 31, 2011

At
March 31, 2012

ii)

iii)

Notional principal amount of exchange traded currency options
undertaken during the year .........................................................................

Notional principal amount of exchange traded currency options
outstanding ..................................................................................................

Notional principal amount of exchange traded currency options
outstanding and not “highly effective” .......................................................

iv) Mark-to-market value of exchange traded currency options outstanding
and not “highly effective” ...........................................................................

17. Forward rate agreement (FRA)/Interest rate swaps (IRS)

4,34,623.3

43,970.0

12,587.8

9,418.5

N.A.

The Bank enters into FRA and IRS contracts for balance sheet management and market making purposes whereby the
Bank offers derivative products to its customers to enable them to hedge their interest rate risk within the prevalent
regulatory guidelines.

A FRA is a financial contract between two parties to exchange interest payments for a `notional principal’ amount
on settlement date, for a specified period from start date to maturity date. Accordingly, on the settlement date, cash
payments based on contract rate and the settlement rate, which is the agreed bench-mark/reference rate prevailing on
the settlement date, are made by the parties to one another. The benchmark used in the FRA contracts of the Bank is
LIBOR of various currencies.

An IRS is a financial contract between two parties exchanging or swapping a stream of interest payments for a `notional
principal’ amount on multiple occasions during a specified period. The Bank deals in interest rate benchmarks like
MIBOR, INBMK, MIFOR and LIBOR of various currencies.

These contracts are subject to the risks of changes in market interest rates as well as the settlement risk with the
counterparties.

The following table sets forth, for the periods indicated, the details of the forward rate agreements/interest rate swaps.

Particulars

` in million
At
March 31, 2011

At
March 31, 2012

ii)

iii)

iv)

2.
3.

The notional principal of FRA/IRS ..............................................................

2,603,143.0

3,952,522.3

Losses which would be incurred if all counter parties failed to fulfil their
obligations under the agreement1 .............................................................

Collateral required by the Bank upon entering into FRA/IRS ....................

Concentration of credit risk2 ......................................................................

The fair value of FRA/IRS3 ...........................................................................

31,219.3

—

3,261.6

25,235.5

42,479.4

—

2,871.4

13,615.4

For trading portfolio both mark-to-market and accrued interest have been considered and for hedging portfolio, only accrued
interest has been considered.
Credit risk concentration is measured as the highest net receivable under swap contracts from a particular counter party.
Fair value represents mark-to-market including accrued interest.

F28

schedules

forming part of the Accounts (Contd.)

18. Advances

The following table sets forth, for the periods indicated, the details of movement of gross non-performing assets (NPAs),
net NPAs and provisions.

Particulars

Net NPAs (funded) to net advances (%)

i)
ii) Movement of NPAs (Gross)

a) Opening balance1 ...............................................................................
b) Additions during the year2 ..................................................................
Reductions during the year2,3 ..............................................................
c)
d) Closing balance1 ..................................................................................

iii) Movement of Net NPAs

a) Opening balance1 ................................................................................
b) Additions during the year2 ..................................................................
Reductions during the year2,3 ..............................................................
c)
d) Closing balance1 ..................................................................................

iv) Movement of provisions for NPAs

(excluding provision on standard assets)
a) Opening balance1 ................................................................................
Provisions made during the year2,3 .....................................................
b)
c) Write-off/(write-back) of excess provisions2 .....................................
d) Closing balance1 ..................................................................................

Year ended
March 31, 2012
0.73%

` in million
Year ended
March 31, 2011
1.11%

100,342.6
29,861.2
(35,450.5)
94,753.3

24,073.6
13,311.6
(18,776.8)
18,608.4

76,269.0
20,872.5
(20,996.6)
76,144.9

94,806.5
28,656.3
(23,120.2)
100,342.6

38,411.1
4,946.4
(19,283.9)
24,073.6

56,395.4
27,782.6
(7,909.0)
76,269.0

1.
2.

Net of write-off.
Includes cases added to and deleted from NPAs during the year ended March 31, 2012 with such gross loans amounting to `
8,561.8 million (March 31, 2011: ` 5,025.8 million) and such net loans amounting to ` 2,560.7 million (March 31, 2011: ` 3,512.0
million).
For NPAs in credit cards, the difference between the opening and closing balances (other than accounts written off during the
year) is included in additions during the year.

19. Provision on standard assets

The Bank makes provision on standard assets as per applicable RBI guidelines.

The Bank has not written back any standard assets provision pursuant to the RBI circular no. DBOD.BP.BC.83/21.01.002/
2008-09 dated November 15, 2008 and DBOD.BP.BC.94/21.04.048/ 2011-12 dated May 18, 2011. The provision on standard
assets held by the Bank at March 31, 2012 was ` 14,796.0 million (March 31, 2011: ` 14,796.0 million).

20. Provision Coverage Ratio

The provision coverage ratio of the Bank at March 31, 2012 computed as per the extant RBI guidelines is 80.4% (March
31, 2011: 76.0%).

21. Farm loan waiver

The Ministry of Finance, Government of India had issued guidelines for the implementation of the Agriculture Debt
Waiver and Relief Scheme for farmers on May 23, 2008. The Bank has implemented the scheme as per guidelines issued
by RBI circular DBOD No.BP.BC. 26/21.04.048/2008-09 dated July 30, 2008 on “Agricultural Debt Waiver and Debt Relief
Scheme, 2008 – Prudential norms on Income Recognition, Asset Classification and Provisioning and Capital Adequacy”.

Pursuant to the Scheme, an aggregate amount of ` 2,795.1 million (March 31, 2011: ` 2,795.3 million) has been waived
which was recoverable from Government of India. The amount of ` 2,795.1 million has been received up to March 31,
2012 (March 31, 2011: ` 2,788.9 million).

In terms of RBI circular DBOD.No.BP.BC.26/21.04.048/2008-2009 dated July 30, 2008 on Agriculture Debt Waiver and
Debt Relief Scheme, 2008 - Prudential Norms on Income Recognition, Asset Classification and Provisioning and Capital
Adequacy, an amount of ` 50.4 million, being provision held on Present Value (PV) basis, has been transferred directly to
General Reserve during the year ended March 31, 2012 without routing through the profit and loss account.

F29

schedules

forming part of the Accounts (Contd.)

22. Securitisation

The Bank sells loans through securitisation and direct assignment. The following tables set forth, for the periods indicated,
the information on securitisation and direct assignment activity of the Bank as an originator.

Total number of loan assets securitised .......................................................................
Total book value of loan assets securitised .................................................................
Sale consideration received for the securitised assets ...........................................
Net gain/(loss) on account of securitisation1...............................................................

` in million, except number of loans securitised
Year ended
March 31, 2011
—
—
—
(5,492.7)

Year ended
March 31, 2012
—
—
—
(2,016.2)

Includes gain/(loss) on deal closures, gain amortised during the year and expenses relating to utilisation of credit enhancement.
` in million
At
March 31, 2011
5,266.2
Outstanding credit enhancement (funded) .................................................................
1,246.6
Outstanding liquidity facility ............................................................................................
(17.4)
Net outstanding servicing asset/(liability) ....................................................................
6,017.0
Outstanding subordinate contributions ........................................................................
The outstanding credit enhancement in the form of guarantees amounted to ` 11,833.0 million at March 31, 2012 (March
31, 2011: ` 16,006.0 million).

At
March 31, 2012
5,228.0
327.1
(92.4)
2,750.5

Outstanding credit enhancement in the form of guarantees for third party originated securitisation transactions amounted
to ` 9,161.5 million at March 31, 2012 (March 31, 2011: ` 8,639.0 million) and outstanding liquidity facility for third party
originated securitisation transactions amounted to Nil at March 31, 2012 (March 31, 2011: Nil).

The following table sets forth, for the periods indicated, the movement of provision on securitisation and direct assignment
transactions.

Particulars

Opening balance .....................................................................................................................
Additions during the year ..................................................................................................
Deductions during the year ...............................................................................................
Closing balance .....................................................................................................................

Year ended March
31, 2012
2,363.8
1,696.7
(2,273.8)
1,786.7

` in million
Year ended March
31, 2011
2,253.8
2,277.1
(2,167.1)
2,363.8

23. Financial assets transferred during the year to securitisation company (SC)/reconstruction company (RC)

The Bank has transferred certain assets to Asset Reconstruction Companies (ARCs) in terms of the guidelines issued by
RBI governing such transfer. For the purpose of the valuation of the underlying security receipts issued by the underlying
trusts managed by ARCs, the security receipts are valued at their respective NAVs as advised by the ARCs.

The following table sets forth, for the periods indicated, the details of the assets transferred.

Number of accounts1 ...........................................................................................................
Aggregate value (net of provisions) of accounts sold to SC/RC ............................
Aggregate consideration ....................................................................................................
Additional consideration realised in respect of accounts transferred in earlier years2
Aggregate gain/(loss) over net book value ..................................................................

` in million, except number of accounts
Year ended
March 31, 2011
—
—
—
—
—

Year ended
March 31, 2012
2
44.4
94.1
—
49.7

1.
2.

Excludes accounts previously written-off.
During the year ended March 31, 2012, asset reconstruction companies have fully redeemed six security receipts. The Bank
incurred net loss of ` 950.6 million on such redemptions (March 31, 2011: ` 67.6 million).

F30

schedules

forming part of the Accounts (Contd.)

24. Details of non-performing assets purchased/sold, excluding those sold to SC/RC

The Bank has not purchased any non-performing assets in terms of the guidelines issued by the RBI circular no. DBOD.
No.BP.BC.16/21.04.048/2005-06 dated July 13, 2005. The Bank has sold certain non-performing assets in terms of these
RBI guidelines.

The following table sets forth, for the periods indicated, details of non-performing assets sold, excluding those sold to
SC/RC.

No. of accounts .....................................................................................................................
Aggregate value (net of provisions) of accounts sold, excluding those sold to SC/RC
Aggregate consideration ....................................................................................................
Aggregate gain/(loss) over net book value ..................................................................

` in million, except number of accounts
Year ended
March 31, 2011
..
..
..
..

Year ended
March 31, 2012
1
642.0
641.0
(1.0)

25. Information in respect of restructured assets

The following table sets forth, for the periods indicated, details of loan assets subjected to restructuring.

Year ended March 31, 2012

Year ended March 31, 2011

CDR
Mechanism

SME Debt
Restructuring

Others

CDR
Mechanism

SME Debt
Restructuring

Others

` in million, except number of accounts

12
24,667.5
24,159.4

—
16
— 12,688.3
— 11,790.1

4
993.7
964.6

60
99.4 11,627.7
89.7 11,024.6

3,297.5

—

447.1

132.5

—

645.2

1
155.8
69.8

15.5

1
85.6
50.1

6.1

14
24,908.9
24,279.3

—
—
—

—

—
—
—

—

1
337.1
269.5

—

1
86.9
79.1

3.1

—
—
—

—

—
—
—

—

5
—
— 1,215.2
— 1,216.6

—

—
—
—

—

651.1

2
321.7
360.4

—

—
18
— 13,112.3
— 12,138.7

4
993.7
964.6

67
99.4 13,164.6
89.7 12,601.6

Standard advances
restructured3

Sub- standard
advances
restructured

Doubtful advances
restructured

Total

Number of
borrowers
Amount outstanding
Amount restructured
Sacrifice (diminution
in the fair value)

Number of borrowers
Amount outstanding
Amount restructured
Sacrifice (diminution
in the fair value)

3,319.1

— 1,296.3
The aforesaid disclosure for the year ended March 31, 2012 includes the reversal of interest income of ` 868.8 million (March 31,
2011: ` 176.7 million) on account of conversion of overdue interest into FITL.
The aforesaid disclosure excludes the reversal of derivative income of ` 9.9 million for the year ended March 31, 2012 (March 31,
2011: ` 18.5 million) on account of conversion of derivative receivables into term loan/preference shares.
Amount outstanding represents the borrower level balances (including facilities not restructured) at the end of the quarter in
which the restructuring scheme was implemented.

450.2

132.5

—

F31

schedules

forming part of the Accounts (Contd.)

26. Floating provision

Bank holds floating provision of ` 1.9 million at March 31, 2012 (March 31, 2011: ` 1.9 million) taken over from erstwhile
Bank of Rajasthan on amalgamation.

27. Concentration of Deposits, Advances, Exposures and NPAs

(I) Concentration of deposits, advances, exposures and NPAs

Concentration of deposits

` in million

At
March 31, 2012

At
March 31, 2011

Total deposits of twenty largest depositors ...............................................

212,175.1

219,063.0

Deposits of twenty largest depositors as a percentage of total deposits
of the Bank ...................................................................................................

Concentration of advances1

8.30%

9.71%

At
March 31, 2012

` in million
At
March 31, 2011

Total advances to twenty largest borrowers (including banks) ................

1,032,621.4

968,797.3

Advances to twenty largest borrowers as a percentage of total advances
of the Bank ..................................................................................................

15.40%

16.93%

1. Represents credit exposure as per RBI guidelines on exposure norms. Total advances do not include the exposure to

consolidated entities which are deducted from capital funds of the Bank.

Concentration of exposures1

At
March 31, 2012

` in million
At
March 31, 2011

Total exposure to twenty largest borrowers/customers (including banks)

1,066,030.1

1,007,127.8

Exposures to twenty largest borrowers/customers as a percentage of
total exposure of the Bank .........................................................................
16.29%
1. Represents credit and investment exposures as per RBI guidelines on exposure norms. Total exposure does not include the

14.94%

exposure to consolidated entities which are deducted from capital funds of the Bank.

Concentration of NPAs

Total exposure1 to top four NPA accounts .................................................
1. Represents gross exposure (funded and non-funded)

(II) Sector-wise NPAs

Sr.
no. Sector

1. Agriculture and allied activities1 ...........................................
2.
Industry (Micro & small, medium and large) ........................
3. Services .................................................................................
Personal loans2 ......................................................................
4.
Total .......................................................................................

At
March 31, 2012
5,657.3

` in million
At
March 31, 2011
6,508.1

Percentage of NPAs to total
advances in that sector
At
March 31, 2012
Net
1.25%
0.69%
0.24%
1.26%
0.73%

Gross
7.61%
2.10%
1.76%
9.84%
4.47%

At
March 31, 2011
Net
3.00%
0.77%
0.51%
1.83%
1.11%

Gross
4.78%
2.02%
0.92%
9.18%
3.62%

1. Represents loans towards agriculture and allied activities that qualify for priority sector lending.
2.

Excludes retail loans towards agriculture and allied activities that qualify for priority sector lending. Excludes commercial
business loans, developer financing and dealer funding.

F32

schedules

forming part of the Accounts (Contd.)

(III) Movement of NPAs

Particulars

Opening balance of gross NPAs1 ...............................................................
Additions: fresh NPAs during the year2,3 ....................................................
Sub-total (A) ................................................................................................
Less:
i) Upgradations ........................................................................................
ii) Recoveries (excluding recoveries made from upgraded accounts)
iii) Write-offs ...............................................................................................
Sub-total (B) ................................................................................................
Closing balance of gross NPAs1 (A-B) .......................................................

Year ended
March 31, 2012
100,342.6
29,861.2
130,203.8

(7,381.1)
(16,234.5)
(11,834.9)
(35,450.5)
94,753.3

` in million
Year ended
March 31, 2011
94,806.5
28,656.3
123,462.8

(7,581.6)
(13,670.1)
(1,868.5)
(23,120.2)
100,342.6

1. Net of write-off.
2.

Includes cases added to and deleted from NPAs during the year ended March 31, 2012, with such gross loans amounting to
` 8,561.8 million (March 31, 2011: ` 5,025.8 million).
For NPAs in credit cards, the difference between the opening and closing balances (other than accounts written off during
the year) is included in additions during the year.

(IV) Overseas assets, NPAs and revenue

Particulars

Total assets1 ...............................................................................................
Total NPAs (net)2 ........................................................................................
Total revenue1 ............................................................................................

At
March 31, 2012
848,040.6
508.1
44,327.6

` in million
At
March 31, 2011
697,435.3
981.1
39,309.8

1. Represents the total assets and total revenue of foreign operations as reported in Schedule 18 notes to accounts note no. 4

on information about business and geographical segments, of the financial statements.

2. As per RBI guidelines.

(V) Off-balance sheet special purpose vehicles (SPVs) sponsored (which are required to be consolidated as per

accounting norms)

(a) The following table sets forth, the names of SPVs/trusts sponsored by the Bank/subsidiaries which are consolidated.

Sr.
No.
A.

Name of the SPV sponsored1

Domestic
1.
2.
3.
4.
5.

ICICI Eco-net Internet and Technology Fund
ICICI Equity Fund
ICICI Emerging Sectors Fund
ICICI Strategic Investments Fund
ICICI Venture Value Fund

B. Overseas
None

The nature of business of the above entities is given in significant accounting policies (Schedule 17) in the consolidated
notes to accounts to consolidated financial statements.

(b) The following table sets forth, the names of SPVs/trusts which are not sponsored by the Bank/subsidiaries and

are consolidated.

Name of the SPV1

Sr.
No.

A. Domestic

1. Rainbow Fund

B. Overseas

None

The nature of business of the above entities is given in significant accounting policies (Schedule 17) in the notes to accounts
to consolidated financial statements.

F33

schedules

forming part of the Accounts (Contd.)

28. Lending to sensitive sectors

The Bank has lending to sectors, which are sensitive to asset price fluctuations. The sensitive sectors include capital
markets and real estate.

The following table sets forth, for the periods indicated, the position of lending to capital market sector.

iii

Direct investment in equity shares, convertible bonds, convertible
debentures and units of equity-oriented mutual funds, the corpus of
which is not exclusively invested in corporate debt ...................................

Advances against shares/bonds/debentures or other securities or on
clean basis to individuals for investment in shares (including IPOs/ESOPs),
convertible bonds, convertible debentures, and units of equity-oriented
mutual funds ..................................................................................................

Advances for any other purposes where shares or convertible bonds or
convertible debentures or units of equity oriented mutual funds are taken
as primary security .......................................................................................

Advances for any other purposes to the extent secured by the collateral
security of shares or convertible bonds or convertible debentures or units
of equity oriented mutual funds i.e. where the primary security other than
shares/convertible bonds/convertible debentures/units of equity oriented
mutual funds does not fully cover the advances .........................................

Secured and unsecured advances to stockbrokers and guarantees issued
on behalf of stockbrokers and market makers ............................................

Loans sanctioned to corporate against the security of shares/bonds/
debentures or other securities or on clean basis for meeting promoter’s
contribution to the equity of new companies in anticipation of raising
resources .......................................................................................................

vii

Bridge loans to companies against expected equity flows/issues .............

viii Underwriting commitments taken up by the Bank in respect of primary
issue of shares or convertible bonds or convertible debentures or units of
equity oriented mutual funds ........................................................................

Financing to stockbrokers for margin trading ..............................................

All exposures to Venture Capital Funds (both registered and unregistered)

Others ............................................................................................................

Total Exposure to Capital Market ................................................................

` in million

At
March 31, 2012

At
March 31, 2011

14,654.4

19,481.6

12,102.9

12,659.3

13,900.4

5,513.6

—

40,623.6

31,845.2

—

9,608.7

112,518.7

203,408.7

10,338.6

185,891.2

265,729.5

F34

schedules

forming part of the Accounts (Contd.)

The following table sets forth, for the periods indicated, the summary of lending to real estate sector.

Real estate sector

Direct exposure ......................................................................................

i) Residential mortgages ......................................................................

of which: individual housing loans eligible for priority sector advances

ii) Commercial real estate1 ...................................................................

iii) Investments in mortgage backed securities (MBS) and other

securitised exposure ........................................................................

a. Residential..................................................................................

b. Commercial real estate..............................................................

Indirect exposure ...................................................................................

i) Fund based and non-fund based exposures on National Housing
Bank (NHB) and Housing Finance Companies (HFCs) ....................

ii) Others ...............................................................................................

Total Exposure to Real Estate Sector3..................................................

` in million

March 31, 2012

March 31, 2011

735,286.5

491,314.1

177,313.3

237,900.1

6,072.3

—

78,930.8

77,476.42

1,454.4

814,217.3

712,446.1

453,165.2

190,163.0

250,948.9

8,332.0

—

64,893.7

—

777,339.8

Commercial real estate exposure include loans to individuals against non-residential premises, loans given to land and building
developers for construction, corporate loans for development of special economic zone, loans to borrowers where servicing of
loans is from a real estate activity and exposures to mutual funds/venture capital funds/private equity funds investing primarily in
the real estate companies.
Indirect exposure includes mandatory contribution of ` 15,268.1 million to Rural Housing Fund of NHB, arising out of shortfall in
achievement of the priority sector lending targets.
Excludes non-banking assets acquired in satisfaction of claims.

29. Risk category-wise country exposure

As per the extant RBI guidelines, the country exposure of the Bank is categorised into various risk categories listed in the
following table. The funded country exposure (net) of the Bank as a percentage of total funded assets for Singapore was
1.54% (March 31, 2011: 0.92%) and United Kingdom was 1.23% (March 31, 2011: 1.32%). As the net funded exposure
to Singapore and United Kingdom exceeds 1.0% of total funded assets, the Bank held a provision of ` 240.0 million on
country exposure at March 31, 2012 (March 31, 2011: ` 140.0 million) based on RBI guidelines.

The following table sets forth, for the periods indicated, the details of exposure (net) and provision held by the bank.

Risk category

Insignificant ................................................

Low .............................................................

Moderate....................................................

High ............................................................

Very High ...................................................

Restricted ...................................................

Off-Credit ...................................................

Total ...........................................................

- Of which: funded ....................................

Exposure (net) at
March 31, 2012

Provision held at
March 31, 2012

Exposure (net) at
March 31, 2011

Provision held at
March 31, 2011

` in million

529,612.7

186,098.7

23,462.4

0.1

—

240.0

—

452,917.5

129,968.6

23,727.2

485.7

—

739,173.9

349,358.3

240.0

—

607,099.0

295,610.7

140.0

—

140.0

—

F35

schedules

forming part of the Accounts (Contd.)

30. Details of Single Borrower Limit and Borrower Group Limit exceeded by the Bank

During the year ended March 31, 2012, the Bank has complied with the Reserve Bank of India guidelines on single
borrower and borrower group limit.

31. Unsecured advances against intangible assets

The Bank had not made advances against intangible collaterals of the borrowers, which are classified as ‘unsecured’ in
its financial statements at March 31, 2012 (March 31, 2011: Nil) and the estimated value of the intangible collaterals was
Nil at March 31, 2012 (March 31, 2011: Nil).

32. Fixed Assets

The following table sets forth, for the periods indicated, the movement in software acquired by the Bank, as included in
fixed assets.

Particulars

At cost at March 31st of preceding year ..............................................................
Additions during the year .....................................................................................
Deductions during the year ..................................................................................

Depreciation to date ..............................................................................................
Net block ................................................................................................................

At
March 31, 2012

` in million
At
March 31, 2011

6,589.6
465.6
—

(5,637.0)
1,418.2

5,852.6
737.6
(0.6)

(4,830.8)
1,758.8

33. Assets given on lease

Assets under finance lease

The following table sets forth, for the periods indicated, the details of finance leases.

Particulars

Future minimum lease receipts

Present value of lease receipts .............................................................................

Unmatured finance charges ..................................................................................

Total .......................................................................................................................

Maturity profile of future minimum lease receipts

- Not later than one year .......................................................................................

- Later than one year and not later than five years ..............................................

- Later than five years ............................................................................................

Total .......................................................................................................................

Maturity profile of present value of lease rentals

At
March 31, 2012

` in million
At
March 31, 2011

—

6.8

0.6

7.4

2.7

4.7

—

7.4

The following table sets forth, for the periods indicated, the details of maturity profile of present value of finance lease
receipts.

Particulars

Not later than one year ........................................................................................

Later than one year and not later than five years ...............................................

Later than five years .............................................................................................

Total ......................................................................................................................

` in million

At
March 31, 2012

At
March 31, 2011

—

2.4

4.4

—

6.8

F36

schedules

forming part of the Accounts (Contd.)

34. Description of contingent liabilities

The following table describes the nature of contingent liabilities of the Bank.

Sr.
no.

Contingent liability

Brief Description

Claims against
the Bank, not
acknowledged as
debts

This item represents certain demands made in certain tax and legal matters against the
Bank in the normal course of business and customer claims arising in fraud cases. In
accordance with the Bank’s accounting policy and Accounting Standard 29, the Bank
has reviewed and classified these items as possible obligations based on legal opinion/
judicial precedents/assessment by the Bank.

Liability for partly paid
investments

This item represents amounts remaining unpaid towards purchase of investments.
These payment obligations of the Bank do not have any profit/loss impact.

Liability on account of
outstanding forward
exchange contracts

The Bank enters into foreign exchange contracts in its normal course of business,
to exchange currencies at a pre-fixed price at a future date. This item represents the
notional principal amount of such contracts, which are derivative instruments. With
respect to the transactions entered into with its customers, the Bank generally enters
into off-setting transactions in the inter-bank market. This results in generation of a
higher number of outstanding transactions, and hence a large value of gross notional
principal of the portfolio, while the net market risk is lower.

Guarantees given on
behalf of constituents,
acceptances,
endorsements and
other obligations

This item represents the guarantees and documentary credits issued by the Bank in
favour of third parties on behalf of its customers, as part of its trade finance banking
activities with a view to augment the customers’ credit standing. Through these
instruments, the Bank undertakes to make payments for its customers’ obligations,
either directly or in case the customer fails to fulfill their financial or performance
obligations.

Currency swaps,
interest rate swaps,
currency options and
interest rate futures

Other items for
which the Bank is
contingently liable

This item represents the notional principal amount of various derivative instruments
which the Bank undertakes in its normal course of business. The Bank offers these
products to its customers to enable them to transfer, modify or reduce their foreign
exchange and interest rate risks. The Bank also undertakes these contracts to manage
its own interest rate and foreign exchange positions. With respect to the transactions
entered into with its customers, the Bank generally enters into off-setting transactions
in the inter-bank market. This results in generation of a higher number of outstanding
transactions, and hence a large value of gross notional principal of the portfolio, while
the net market risk is lower.

Other items for which the Bank is contingently liable primarily include the amount of
Government securities bought/sold and remaining to be settled on the date of financial
statements. This also includes the value of sell down options and other facilities
pertaining to securitisation the notional principal amounts of credit derivatives, amount
applied in public offers under Application Supported by Blocked Amounts (ASBA) and
the amount that the Bank is obligated to pay under capital contracts. Capital contracts
are job orders of a capital nature which have been committed.

35. Bancassurance

The following table sets forth, for the periods indicated, the break-up of income derived from bancassurance business.

Sr.
No.

Nature of income

Year ended
March 31, 2012

` in million
Year ended
March 31, 2011

Income from selling life insurance policies ..................................................

Income from selling non life insurance policies ..........................................

Income from selling mutual fund/collective investment scheme products

3,004.1

369.1

693.1

1,885.4

325.6

597.4

F37

schedules

forming part of the Accounts (Contd.)

36. Staff retirement benefits

Pension
The following tables set forth, for the periods indicated, reconciliation of opening and closing balance of the present
value of the defined benefit obligation for pension benefits.

Particulars

Opening obligations ............................................................................................
Service cost ..........................................................................................................
Interest cost ..........................................................................................................
Actuarial (gain)/loss ..............................................................................................
Liabilities extinguished on settlement .................................................................
Addition due to amalgamation ............................................................................
Benefits paid .........................................................................................................
Obligations at the end of year ............................................................................

Opening plan assets, at fair value ......................................................................
Expected return on plan assets ...........................................................................
Actuarial gain/(loss) ..............................................................................................
Assets distributed on settlement .........................................................................
Contributions ........................................................................................................
Addition due to amalgamation ............................................................................
Benefits paid .........................................................................................................
Closing plan assets, at fair value ........................................................................

Fair value of plan assets at the end of the year ..................................................
Present value of the defined benefit obligations at the end of the year ............
Amount not recognised as an asset (limit in Para 59(b)) ....................................
Asset/(liability) ....................................................................................................

Cost for the year
Service cost ..........................................................................................................
Interest cost ..........................................................................................................
Expected return on plan assets ...........................................................................
Actuarial (gain)/loss ..............................................................................................
Curtailments & settlements (gain)/loss ................................................................
Effect of the limit in para 59(b) .............................................................................
Net cost ................................................................................................................

Actual Return on Plan Assets...............................................................................
Expected employer’s contribution next year ............................................................
Investment details of plan assets
Insurer Managed Funds1 .....................................................................................
Government of India securities ............................................................................
Corporate Bonds ..................................................................................................
Others ...................................................................................................................

Assumptions
Interest rate ...........................................................................................................
Salary escalation rate:
On Basic Pay .....................................................................................................
On Dearness Relief ...........................................................................................
Estimated rate of return on plan assets ..............................................................

Year ended
March 31, 2012
8,842.9
251.6
707.8
2,329.8
(2,268.7)
—
(260.7)
9,602.7

` in million
Year ended
March 31, 2011
1,748.7
170.8
457.8
607.0
(460.0)
6,479.0
(160.4)
8,842.9

8,467.4
652.9
51.7
(2,413.5)
2,881.7
—
(260.7)
9,379.5
9,379.5

9,602.7
—
(223.2)

251.6
707.8
(652.9)
2,278.2
144.8
—
2,729.5
704.6

150.0

78.93%
8.59%
9.40%
3.08%

8.35%

1.50%
7.00%
8.00%

1,839.9
156.5
69.1
(511.1)
6,094.6
978.8
(160.4)
8,467.4
8,467.4

8,842.9
—
(375.5)

170.8
457.8
(156.5)
537.9
51.1
(7.7)
1,053.4
225.7

100.0

75.58%
9.93%
10.82%
3.67%

8.10%

1.50%
7.00%
8.00%

1. Majority of the funds are invested in Government of India securities and corporate bonds.

Estimated rate of return on plan assets is based on our expectation of the average long-term rate of return expected on
investments of the Fund during the estimated term of the obligations.

F38

schedules

forming part of the Accounts (Contd.)

Experience adjustment

Particulars

Plan assets ...............................................................

Year ended
March 31,
2012
9,379.5

Year ended
March 31,
2011
8,467.4

Year ended
March 31,
2010
1,839.9

Year ended
March 31,
2009
2,145.3

Year ended
March 31,
2008
1,490.1

Defined benefit obligations .....................................

9,602.7

8,842.9

1,748.7

1,932.2

1,678.1

Amount not recognised as an asset
(limit in para 59(b) ...................................................

Surplus/(deficit) .......................................................

Experience adjustment on plan assets ...................

Experience adjustment on plan liabilities ...............

—

(223.2)

51.7

2,692.3

—

(375.5)

69.1

689.7

7.7

83.5

(130.7)

196.9

51.2

161.9

144.8

6.6

—

(188.0)

(117.9)

(121.9)

` in million

Particulars

Year ended
March 31, 2012
5,082.7
5.8
5,088.5
379.7
419.5
(57.4)
—
—
10.1
(593.2)
5,247.2
5,182.4
395.5
20.1
—
12.8
9.8
(593.2)
5,027.4
5,027.4
5,247.2
—
(219.8)

Gratuity
The following tables set forth, for the periods indicated, reconciliation of opening and closing balance of the present
value of the defined benefit obligation for gratuity benefits.
` in million
Year ended
March 31, 2011
2,310.5
0.2
2,310.7
297.1
326.3
(324.9)
9.9
2,773.1
35.3
(344.8)
5,082.7
2,507.5
233.5
(63.2)
803.0
2,006.9
39.5
(344.8)
5,182.4
5,182.4
5,082.7
—
99.7

Opening obligations ...........................................................................................
Add: Adjustment for exchange fluctuation on opening obligations ................
Adjusted opening obligations ...........................................................................
Service cost .........................................................................................................
Interest cost .........................................................................................................
Actuarial (gain)/loss .............................................................................................
Past service cost ..................................................................................................
Addition due to amalgamation ...........................................................................
Liability assumed on acquisition/(settled on divestiture) ..................................
Benefits paid ........................................................................................................
Obligations at the end of the year ....................................................................
Opening plan assets, at fair value .....................................................................
Expected return on plan assets ..........................................................................
Actuarial gain/(loss) .............................................................................................
Addition due to amalgamation ...........................................................................
Contributions .......................................................................................................
Assets acquired on acquisition/(distributed on divestiture) ..............................
Benefits paid ........................................................................................................
Closing plan assets, at fair value .......................................................................
Fair value of plan assets at the end of the year .................................................
Present value of the defined benefit obligations at the end of the year ...........
Amount not recognised as an asset (limit in Para 59(b)) ...................................
Asset/(liability)....................................................................................................
Cost for the year
Service cost .........................................................................................................
Interest cost .........................................................................................................
Expected return on plan assets ..........................................................................
Actuarial (gain)/loss .............................................................................................
Past service cost ..................................................................................................
Exchange fluctuation loss/(gain) .........................................................................
Losses/(Gains) on “Acquisition/Divestiture” .......................................................
Effect of the limit in para 59(b) ..................................................................................
Net cost ...............................................................................................................
Actual Return on Plan Assets..............................................................................
Expected employer’s contribution next year .....................................................
Investment details of plan assets
Insurer Managed Funds1 .....................................................................................
Government of India securities ...........................................................................
Corporate Bonds .................................................................................................

379.7
419.5
(395.5)
(77.5)
—
5.8
0.3
—
332.3
415.5
253.6

82.65%
4.74%
5.98%

297.1
326.3
(233.5)
(261.7)
9.9
0.2
(4.2)
(47.9)
86.2
170.3
382.0

79.84%
6.45%
5.39%

F39

schedules

forming part of the Accounts (Contd.)

Particulars

Special Deposit schemes ....................................................................................
Others ..................................................................................................................
Assumptions
Interest rate ..........................................................................................................
Salary escalation rate ..........................................................................................
Estimated rate of return on plan assets .............................................................
1. Majority of the funds are invested in Government of India securities and corporate bonds.

Year ended
March 31, 2012
5.78%
0.85%

Year ended
March 31, 2011
7.12%
1.20%

8.30%
7.00%
8.00%

8.10%
7.00%
8.00%

Estimated rate of return on plan assets is based on our expectation of the average long-term rate of return expected on
investments of the Fund during the estimated term of the obligations.

Experience adjustment

Particulars

Plan assets ................................................................
Defined benefit obligations ......................................
Amount not recognised as an asset
(limit in para 59(b)) ...................................................
Surplus/(deficit) ........................................................
Experience adjustment on plan assets ....................
Experience adjustment on plan liabilities ................

` in million

Year ended
March 31,
2012
5,027.4
5,247.2

Year ended
March 31,
2011
5,182.4
5,082.7

Year ended
March 31,
2010
2,507.5
2,310.5

Year ended
March 31,
2009
2,272.1
2,195.7

Year ended
March 31,
2008
1,506.7
1,840.4

—
(219.8)
20.1
44.1

—
99.7
(63.2)
79.0

47.9
149.1
168.8
(0.8)

7.9
68.5
(118.0)
(4.1)

—
(333.7)
(24.8)
14.0

The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.

Provident Fund (PF)
The Bank has provided for an amount of ` 17.8 million for the year ended March 31, 2012 towards interest rate guarantee
on exempt provident fund on the basis of actuarial valuation.

Assumptions

` in million
Year ended
March 31, 2012
8.30%
Discount rate for the term of the obligation ...........................................................................................
8.43%
Average historic yield on the investment portfolio ...............................................................................
8.55%
Discount rate for the remaining term to maturity of the investment portfolio .....................................
8.18%
Expected investment return ....................................................................................................................
8.25%
Guaranteed rate of return .......................................................................................................................
Bank has contributed employer’s contribution of ` 1,115.3 million to provident fund for the year ended March 31, 2012
(March 31, 2011: ` 1,185.5 million), which includes compulsory contribution made towards employee pension scheme
under Employees Provident Fund and Miscellaneous Provisions Act, 1952.

Superannuation Fund
Bank has contributed employer’s contribution of ` 114.8 million for the year March 31, 2012 (March 31, 2011: ` 102.6
million) to superannuation fund.

37. Movement in provision for credit card/debit card reward points

Particulars

The following table sets forth, for the periods indicated, movement in provision for credit card/debit card reward points.
` in million
Year ended
March 31, 2011
269.7
555.4
(362.6)
462.5

Opening provision for reward points .................................................................
Provision for reward points made during the year ............................................
Utilisation/write-back of provision for reward points ........................................
Closing provision for reward points1 .................................................................

Year ended
March 31, 2012
462.5
769.7
(519.7)
712.5

The closing provision is based on the actuarial valuation of accumulated credit/debit card reward points. This amount will be
utilised towards redemption of the credit/debit card reward points.

F40

schedules

forming part of the Accounts (Contd.)

38. Provisions and contingencies

The following table sets forth, for the periods indicated, the break-up of provisions and contingencies included in profit
and loss account.

Provisions for depreciation of investments .......................................................
Provision towards non-performing and other assets ........................................
Provision towards standard assets .....................................................................
Provision towards income tax ............................................................................
Deferred tax adjustment .....................................................................................
Provision towards wealth tax ..............................................................................
Other provisions and contingencies...................................................................
Total provisions and contingencies ...................................................................

Year ended
March 31, 2012
4,132.0
9,931.8
—
21,874.2
1,446.5
61.0
1,766.6
39,212.1

` in million
Year ended
March 31, 2011
2,038.2
19,769.1
—
21,381.1
(5,317.8)
30.0
1,061.1
38,961.7

39. Provision for income tax

The provision for income tax (including deferred tax) for the year ended March 31, 2012 amounted to ` 23,320.7 million
(March 31, 2011: ` 16,063.3 million).
The Bank has a comprehensive system of maintenance of information and documents required by transfer pricing
legislation under section 92-92F of the Income Tax Act, 1961. The Bank is of the opinion that all international transactions
are at arm’s length so that the above legislation will not have material impact on the financial statements.

40. Deferred tax

At March 31, 2012, the Bank has recorded net deferred tax asset of ` 25,453.2 million (March 31, 2011: ` 26,900.3 million),
which has been included in other assets.

The following table sets forth, for the periods indicated, the break-up of deferred tax assets and liabilities into major items.
` in million
At
March 31, 2011

At
March 31, 2012

Deferred tax asset
Provision for bad and doubtful debts ..................................................................
Capital loss ............................................................................................................
Others ...................................................................................................................
Total deferred tax asset .......................................................................................
Deferred tax liability ............................................................................................
Depreciation on fixed assets ................................................................................
Total deferred tax liability ...................................................................................
Deferred tax asset/(liability) pertaining to foreign branches ..............................
Total net deferred tax asset/ (liability) ...............................................................

27,348.8
79.5
2,299.3
29,727.6

4,275.1
4,275.1
0.7
25,453.2

28,944.3
—
2,398.8
31,343.1

4,444.1
4,444.1
1.3
26,900.3

During the year ended March 31, 2012, Bank has created deferred tax asset on carry forward capital losses, as based on its
firm plans it is virtually certain that sufficient future taxable capital gains will be available against which the loss can be set off.

41. Dividend distribution tax

For the purpose of computation of dividend distribution tax on the proposed dividend, the Bank has reduced the dividend
received from its Indian subsidiaries, which are not the subsidiaries of any other company, on which dividend distribution
tax has been paid by the subsidiaries as per the provisions of Section 115-O of the Income Tax Act, 1961.

42. Related Party Transactions

The Bank has transactions with its related parties comprising subsidiaries, associates/joint ventures/other related entities,
key management personnel and relatives of key management personnel.

Subsidiaries
ICICI Bank UK PLC, ICICI Bank Canada, ICICI Bank Eurasia Limited Liability Company, ICICI Prudential Life Insurance
Company Limited1, ICICI Lombard General Insurance Company Limited1, ICICI Prudential Asset Management Company
Limited1, ICICI Securities Limited, ICICI Securities Primary Dealership Limited, ICICI Home Finance Company Limited,

F41

schedules

forming part of the Accounts (Contd.)

ICICI Venture Funds Management Company Limited, ICICI International Limited, ICICI Trusteeship Services Limited, ICICI
Investment Management Company Limited, ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Prudential Trust
Limited1 and ICICI Prudential Pension Funds Management Company Limited1.

1. Jointly controlled entities.

Associates/joint ventures/other related entities
ICICI Equity Fund1, ICICI Eco-net Internet and Technology Fund1, ICICI Emerging Sectors Fund1, ICICI Strategic Investments
Fund1, ICICI Kinfra Limited1, ICICI West Bengal Infrastructure Development Corporation Limited1 (upto December 31, 2010),
Financial Inclusion Network & Operations Limited, TCW/ICICI Investment Partners Limited, I-Process Services (India) Private
Limited, I-Solutions Providers (India) Private Limited3 (upto September 30, 2011), NIIT Institute of Finance, Banking and
Insurance Training Limited, ICICI Venture Value Fund1, Comm Trade Services Limited, Prize Petroleum Company Limited (upto
September 30, 2011), ICICI Foundation for Inclusive Growth, I-Ven Biotech Limited1, Rainbow Fund, ICICI Merchant Services
Private Limited, Mewar Aanchalik Gramin Bank2.
1.
2. With respect to an entity, which has been identified as a related party during the three months ended September 30, 2010,

Entities consolidated as per Accounting Standard (AS) 21 on ‘consolidated financial statements’.

transactions reported from the three months ended September 30, 2010.
I-Solutions Providers (India) Private Limited has been amalgamated with I-Process Services (India) Private Limited during the
three months ended December 31, 2011.

Key management personnel
Ms. Chanda Kochhar, Mr. Sandeep Bakhshi1, Mr. N. S. Kannan, Mr. K. Ramkumar, Mr. Rajiv Sabharwal2, Mr. Sonjoy
Chatterjee3.

Relatives of key management personnel
Mr. Deepak Kochhar, Mr. Arjun Kochhar, Ms. Aarti Kochhar, Mr. Mahesh Advani, Ms. Varuna Karna, Ms. Sunita Advani,
Ms. Mona Bakhshi1, Mr. Sameer Bakhshi1, Ms. Rangarajan Kumudalakshmi, Ms. Aditi Kannan, Mr. Narayanan Raghunathan,
Mr. Narayanan Rangarajan, Mr. Narayanan Krishnamachari, Ms. Narayanan Sudha, Mr. R. Shyam, Ms. R. Suchithra,
Mr. K. Jayakumar, Ms. J. Krishnaswamy, Ms. Sangeeta Sabharwal2, Mr. Sanjiv Sabharwal2, Mr. Somnath Chatterjee3, Mr. Tarak
Nath Chatterjee3, Ms. Sunaina Chatterjee3, Ms. Nandini Chatterjee3.

1.
2.
3.

Transactions reported upto July 31, 2010.
Transactions reported with effect from June 24, 2010.
Transactions reported upto April 30, 2010.

The following were the significant transactions between the Bank and its related parties for the year ended March 31,
2012. A specific related party transaction is disclosed as a material related party transaction wherever it exceeds 10% of
all related party transactions in that category.

Insurance services
During the year ended March 31, 2012, the Bank paid insurance premium to insurance subsidiaries amounting to ` 957.9
million (March 31, 2011: ` 1,529.7 million). The material transactions for the year ended March 31, 2012 were payment of
insurance premium to ICICI Lombard General Insurance Company Limited amounting to ` 775.8 million (March 31, 2011:
` 1,380.8 million) and to ICICI Prudential Life Insurance Company Limited amounting to ` 182.1 million (March 31, 2011:
` 148.9 million).

During the year ended March 31, 2012, the Bank’s insurance claims from the insurance subsidiaries amounted to ` 411.5
million (March 31, 2011: ` 945.5 million). The material transactions for the year ended March 31, 2012 were with ICICI
Lombard General Insurance Company Limited amounting to ` 355.2 million (March 31, 2011: ` 906.5 million) and with
ICICI Prudential Life Insurance Company Limited amounting to ` 56.3 million (March 31, 2011: ` 39.0 million).
Fees and commission income
During the year ended March 31, 2012, the Bank received fees from its subsidiaries amounting to ` 3,841.2 million
(March 31, 2011: ` 2,809.5 million) and from its associates/joint ventures/other related entities amounting to ` 19.9
million (March 31, 2011: ` 0.8 million). The material transactions for the year ended March 31, 2012 were with ICICI
Prudential Life Insurance Company Limited amounting to ` 3,077.0 million (March 31, 2011: ` 1,969.0 million), ICICI
Lombard General Insurance Company Limited amounting to ` 421.0 million (March 31, 2011: ` 380.0 million) and with
ICICI Securities Limited amounting to ` 245.9 million (March 31, 2011: ` 358.7 million).

During the year ended March 31, 2012, the Bank received commission on bank guarantees from its subsidiaries
amounting to ` 32.4 million (March 31, 2011: ` 10.3 million). The material transactions for the year ended March 31,
2012 were with ICICI Bank UK PLC amounting to ` 24.8 million (March 31, 2011: ` 8.6 million), ICICI Bank Eurasia Limited
Liability Company amounting to ` 5.6 million (March 31, 2011: ` 0.1 million) and with ICICI Securities Limited amounting
to ` 1.5 million (March 31, 2011: ` 1.5 million).

F42

schedules

forming part of the Accounts (Contd.)

Lease of premises, common corporate and facilities expenses
During the year ended March 31, 2012, the Bank recovered from its subsidiaries an amount of ` 1,112.1 million
(March 31, 2011: ` 1,080.2 million) and from its associates/joint ventures/other related entities an amount of ` 38.4
million (March 31, 2011: ` 87.5 million) for lease of premises, common corporate and facilities expenses. The material
transactions for the year ended March 31, 2012 were with ICICI Securities Limited amounting to ` 272.0 million
(March 31, 2011: ` 234.5 million), ICICI Home Finance Company Limited amounting to ` 258.6 million (March 31, 2011:
` 241.1 million), ICICI Prudential Life Insurance Company Limited amounting to ` 162.6 million (March 31, 2011: ` 208.0
million), ICICI Lombard General Insurance Company Limited amounting to ` 138.4 million (March 31, 2011: ` 178.1
million) and with ICICI Bank UK PLC amounting to ` 125.1 million (March 31, 2011: ` 84.9 million).
Secondment of employees
During the year ended March 31, 2012, the Bank recovered towards deputation of employees from its subsidiaries an
amount of ` 37.9 million (March 31, 2011: ` 29.1 million) and from its associates/joint ventures/other related entities an
amount of ` 7.0 million (March 31, 2011: ` 40.0 million). The material transactions for the year ended March 31, 2012 were
with ICICI Investment Management Company Limited amounting to ` 28.2 million (March 31, 2011: ` 19.5 million), ICICI
Securities Limited amounting to ` 11.4 million (March 31, 2011: ` 12.1 million), I-Process Services (India) Private Limited
amounting to ` 7.0 million (March 31, 2011: ` 3.8 million), ICICI Merchant Services Private Limited amounting to Nil (March
31, 2011: ` 24.4 million) and with ICICI West Bengal Infrastructure Development Corporation Limited amounting to Nil
(March 31, 2011: ` 7.3 million).
Purchase of investments
During the year ended March 31, 2012, the Bank purchased certain investments from its subsidiaries amounting to
` 5,757.0 million (March 31, 2011: ` 4,200.0 million). The material transactions for the year ended March 31, 2012 were
with ICICI Securities Primary Dealership Limited amounting to ` 3,927.5 million (March 31, 2011: ` 2,109.6 million) and
with ICICI Prudential Life Insurance Company Limited amounting to ` 1,675.4 million (March 31, 2011: ` 1,991.4 million).

During the year ended March 31, 2012, the Bank invested in equity warrants of Financial Inclusion Network & Operations
Limited amounting to ` 40.0 million (March 31, 2011: Nil) and in the equity shares of ICICI Lombard General Insurance
Company Limited amounting to Nil (March 31, 2011: ` 2,516.0 million).
Sale of investments
During the year ended March 31, 2012, the Bank sold certain investments to its subsidiaries amounting to ` 9,532.7
million (March 31, 2011: ` 12,013.8 million) and to its associates/joint ventures/other related entities amounting to ` 48.7
million (March 31, 2011: Nil). The material transactions for the year ended March 31, 2012 were with ICICI Prudential Life
Insurance Company Limited amounting to ` 5,097.7 million (March 31, 2011: ` 3,074.9 million), ICICI Securities Primary
Dealership Limited amounting to ` 2,783.6 million (March 31, 2011: ` 8,528.8 million) and with ICICI Lombard General
Insurance Company Limited amounting to ` 1,560.3 million (March 31, 2011: ` 400.9 million).
Investment in Certificate of Deposits (CDs) issued by ICICI Bank
During the year ended March 31, 2012, subsidiaries have invested in CDs issued by the Bank amounting to ` 4,622.5
million (March 31, 2011: ` 4,820.9 million). The material transactions for the year ended March 31, 2012 were with ICICI
Prudential Life Insurance Company Limited amounting to ` 3,165.6 million (March 31, 2011: ` 4,365.4 million) and with
ICICI Securities Primary Dealership Limited amounting to ` 1,002.5 million (March 31, 2011: Nil)

Redemption/buyback of investments
During the year ended March 31, 2012, the Bank received a consideration from its associates/joint ventures/other related
entities amounting to ` 1,396.8 (March 31, 2011: ` 1,929.3 million) on account of redemption/buyback/distribution of gain/
loss on units/equity shares by associates/joint ventures/other related entities. The material transactions for the year ended
March 31, 2012 were with ICICI Emerging Sectors Fund amounting to ` 1,396.8 (March 31, 2011: ` 389.2 million), ICICI
Equity Fund amounting to Nil (March 31, 2011: ` 1,336.9 million) and with ICICI Eco-net Internet and Technology Fund
amounting to Nil (March 31, 2011: ` 203.2 million).
Reimbursement of expenses to subsidiaries
During the year ended March 31, 2012, the Bank reimbursed expenses to its subsidiaries amounting to ` 40.6 million
(March 31, 2011: ` 31.7 million). The material transactions for the year ended March 31, 2012 were with ICICI Bank UK
PLC amounting to ` 33.9 million (March 31, 2011: ` 31.4 million) and with ICICI Bank Canada amounting to ` 6.7 million
(March 31, 2011: ` 0.3 million)

Reimbursement of expenses to the Bank
During the year ended March 31, 2012, subsidiaries reimbursed expenses to the Bank amounting to ` 19.0 million
(March 31, 2011: ` 45.5 million). The material transactions for the year ended March 31, 2012 were with ICICI Bank UK
PLC amounting to ` 13.4 million (March 31, 2011: ` 40.3 million) and with ICICI Bank Canada amounting to ` 5.4 million
(March 31, 2011: ` 5.2 million).

F43

schedules

forming part of the Accounts (Contd.)

Brokerage, fees and other expenses
During the year ended March 31, 2012, the Bank paid brokerage, fees and other expenses to its subsidiaries amounting
to ` 491.5 million (March 31, 2011: ` 658.7 million) and to its associates/joint ventures/other related entities amounting to
` 1,832.5 million (March 31, 2011: ` 1,405.4 million). The material transactions for the year ended March 31, 2012 were
with ICICI Merchant Services Private Limited amounting to ` 953.9 million (March 31, 2011: ` 664.4 million), I-Process
Services (India) Private Limited amounting to ` 606.5 million (March 31, 2011: ` 392.9 million), ICICI Home Finance
Company Limited amounting to ` 349.8 million (March 31, 2011: ` 408.3 million), Financial Inclusion Network & Operations
Limited amounting to ` 259.0 million (March 31, 2011: ` 340.3 million) and with ICICI Securities Limited amounting to
` 116.1 million (March 31, 2011: ` 207.3 million).
Income on custodial services
During the year ended March 31, 2012, the Bank recovered custodial charges from its subsidiaries amounting to
` 3.5 million (March 31, 2011: ` 1.6 million) and from its associates/joint ventures/other related entities amounting to
` 1.4 million (March 31, 2011: ` 2.6 million). The material transactions for the year ended March 31, 2012 were with
ICICI Securities Primary Dealership Limited amounting to ` 3.3 million (March 31, 2011: ` 1.6 million), ICICI Strategic
Investments Fund amounting to ` 0.6 million (March 31, 2011: ` 0.9 million), ICICI Equity Fund amounting to ` 0.4
million (March 31, 2011: ` 0.5 million) and with ICICI Emerging Sectors Fund amounting to ` 0.2 million (March 31,
2011: ` 0.9 million).
Interest expenses
During the year ended March 31, 2012, the Bank paid interest to its subsidiaries amounting to ` 336.4 million (March 31,
2011: ` 560.7 million), to its associates/joint ventures/other related entities amounting to ` 160.5 million (March 31, 2011:
` 79.7 million), to its key management personnel amounting to ` 2.0 million (March 31, 2011: ` 1.5 million) and to relatives
of key management personnel amounting to ` 1.1 million (March 31, 2011: ` 0.7 million). The material transactions for
the year ended March 31, 2012 were with ICICI Prudential Life Insurance Company Limited amounting to ` 129.1 million
(March 31, 2011: ` 272.5 million), Mewar Aanchalik Gramin Bank amounting to ` 128.9 million (March 31, 2011: ` 69.7
million) and with ICICI Securities Limited amounting to ` 111.6 million (March 31, 2011: ` 157.2 million).
Interest income
During the year ended March 31, 2012, the Bank received interest from its subsidiaries amounting to ` 1,686.8 million
(March 31, 2011: ` 1,579.1 million), from its associates/joint ventures/other related entities amounting to ` 49.1 million
(March 31, 2011: ` 4.8 million), from its key management personnel amounting to ` 0.5 million (March 31, 2011: ` 0.4
million) and from relatives of key management personnel amounting to ` 0.7 million (March 31, 2011: ` 0.7 million). The
material transactions for the year ended March 31, 2012 were with ICICI Home Finance Company Limited amounting to
` 1,181.4 million (March 31, 2011: ` 1,127.7 million) and with ICICI Bank Eurasia Limited Liability Company amounting to
` 210.9 million (March 31, 2011: ` 166.4 million).
Other income
The Bank undertakes derivative transactions with its subsidiaries, associates, joint ventures and other related entities.
The Bank manages its foreign exchange and interest rate risks arising from these transactions by covering them in the
market. During the year ended March 31, 2012, the net loss of the Bank on forex and derivative transactions entered with
subsidiaries was ` 337.3 million (March 31, 2011: loss of ` 121.9 million). The material transactions for the year ended
March 31, 2012 were loss of ` 620.0 million (March 31, 2011: loss of ` 167.5 million) with ICICI Bank UK PLC, gain of
` 352.9 million (March 31, 2011: loss of ` 13.9 million) with ICICI Bank Canada, loss of ` 242.2 million (March 31, 2011:
gain of ` 371.7 million) with ICICI Securities Primary Dealership Limited, gain of ` 168.4 million (March 31, 2011: loss
of ` 64.1 million) with ICICI Home Finance Company Limited and gain of ` 3.6 million (March 31, 2011: loss of ` 248.1
million) with ICICI Bank Eurasia Limited Liability Company. While the Bank within its overall position limits covers these
transactions in the market, the above amounts represent only the transactions with its subsidiaries, associates, joint
ventures and other related entities and not the offsetting/covering transactions.

Dividend income
During the year ended March 31, 2012, the Bank received dividend from its subsidiaries amounting to ` 7,364.1 million
(March 31, 2011: ` 4,113.5 million). The material transactions for the year ended March 31, 2012 were with ICICI Prudential
Life Insurance Company Limited amounting to ` 2,321.7 million (March 31, 2011: Nil), ICICI Home Finance Company
Limited amounting to ` 1,714.1 million (March 31, 2011: ` 1,499.8 million), ICICI Bank UK PLC amounting to ` 1,216.9
million (March 31, 2011: ` 185.1 million), ICICI Securities Limited amounting to ` 520.1 million (March 31, 2011: ` 810.0
million), ICICI Venture Funds Management Company Limited amounting to ` 150.0 million (March 31, 2011: ` 450.0
million) and with ICICI Lombard General Insurance Company Limited amounting to Nil (March 31, 2011: ` 416.6 million).

F44

schedules

forming part of the Accounts (Contd.)

Dividend paid
During the year ended March 31, 2012, the Bank paid dividend to its key management personnel amounting to ` 4.5
million (March 31, 2011: ` 4.2 million). The dividend paid during the year ended March 31, 2012 to Ms. Chanda Kochhar
was ` 3.8 million (March 31, 2011: ` 3.2 million) and to Mr. N. S. Kannan was ` 0.7 million (March 31, 2011: ` 1.0 million).
The dividend paid for the year ended March 31, 2011 to Mr. Sandeep Bakhshi was ` 0.04 million.
Remuneration to whole-time directors
Remuneration paid to the whole-time directors of the Bank during the year ended March 31, 2012 was ` 111.3 million
(March 31, 2011: ` 79.6 million). The remuneration paid for the year ended March 31, 2012 to Ms. Chanda Kochhar was `
37.7 million (March 31, 2011: ` 25.2 million), to Mr. K. Ramkumar was ` 25.4 million (March 31, 2011: ` 17.6 million), to Mr.
N. S. Kannan was ` 25.0 million (March 31, 2011: ` 15.8 million) and to Mr. Rajiv Sabharwal was ` 23.2 million (March 31,
2011: ` 9.0 million). The remuneration paid for the year ended March 31, 2011 to Mr. Sandeep Bakhshi was ` 7.7 million and
to Mr. Sonjoy Chatterjee was ` 4.3 million.
Sale of fixed assets
During the year ended March 31, 2012, the Bank sold fixed assets to its subsidiaries amounting to ` 18.4 million (March 31,
2011: ` 0.9 million) and to its associates/joint ventures/other related entities amounting to Nil (March 31, 2011: ` 2.8 million).
The material transactions for the year ended March 31, 2012 were with ICICI Venture Funds Management Company Limited
amounting to ` 14.7 million (March 31, 2011: Nil), ICICI Lombard General Insurance Company Limited amounting to ` 2.7
million (March 31, 2011: Nil), ICICI Securities Limited amounting to ` 1.0 million (March 31, 2011: ` 0.8 million) and with ICICI
Merchant Services Private Limited amounting to Nil (March 31, 2011: ` 2.8 million).
Purchase of fixed assets
During the year ended March 31, 2012, the Bank purchased fixed assets from its subsidiaries amounting to ` 9.4 million
(March 31, 2011: ` 10.9 million). The material transactions for the year ended March 31, 2012 were with ICICI Lombard
General Insurance Company Limited amounting to ` 4.6 million (March 31, 2011: Nil), ICICI Prudential Life Insurance
Company Limited amounting to ` 4.2 million (March 31, 2011: ` 0.1 million) and with ICICI Home Finance Company Limited
amounting to Nil (March 31, 2011: ` 9.9 million).
Sale of gold coins
During the year ended March 31, 2012, the Bank sold gold coins to ICICI Prudential Life Insurance Company Limited
amounting to ` 45.4 million (March 31, 2011: ` 0.9 million).
Donation
During the year ended March 31, 2012, the Bank has given donation to ICICI Foundation for Inclusive Growth amounting
to ` 239.7 million (March 31, 2011: ` 61.0 million).
Purchase of loan
During the year ended March 31, 2012, the Bank has purchased loans from ICICI Bank UK PLC amounting to ` 12,870.5
million (March 31, 2011: ` 688.7 million).
Sale of loan
During the year ended March 31, 2012, the Bank has sold a loan to ICICI Bank UK PLC amounting to ` 2,543.8 million
(March 31, 2011: Nil).

Purchase of bank guarantees
A bank guarantee facility provided by ICICI Bank UK PLC to one of its clients was transferred to the Bank amounting to `
1,279.2 million (March 31, 2011: Nil) during the year ended March 31, 2012.

Letters of Comfort
The Bank has issued letters of comfort on behalf of its banking subsidiaries, ICICI Bank UK PLC and ICICI Bank Canada.
The details of the letters are given below.

On behalf of

ICICI Bank UK PLC

ICICI Bank Canada

Purpose

Financial Services
Authority, UK (FSA)

Financially support ICICI Bank UK PLC to ensure that it
meets all of its obligations as they fall due.

Canada Deposit
Insurance
Corporation (CDIC)

To comply with the Bank Act and the CDIC regulations
or by-laws there under and to indemnify CDIC against
all losses, damages, reasonable costs and expenses
arising from failure of ICICI Bank Canada in performing
the same.

The Bank has issued an undertaking on behalf of ICICI Securities Inc. for Singapore dollar 10.0 million (currently equivalent
to ` 404.8 million) to the Monetary Authority of Singapore (MAS) and has executed indemnity agreement on behalf of
F45

schedules

forming part of the Accounts (Contd.)

ICICI Bank Canada to its independent directors for a sum not exceeding Canadian Dollar 2.5 million (currently equivalent
to ` 127.6 million) each, aggregating to Canadian Dollar 10 million (currently equivalent to ` 510.4 million). The aggregate
amount of ` 915.2 million is included in the contingent liabilities.
As per the assessment done, there is no likely financial impact of the above letters issued to overseas regulators or of
the indemnity agreements at March 31, 2012.

In addition to the above, the Bank has also issued letters of comfort in the nature of letters of awareness on behalf
of banking and non-banking subsidiaries in respect of their borrowings made or proposed to be made and for other
incidental business purposes. As they are in the nature of factual statements or confirmation of facts, they do not create
any financial impact on the Bank.

The letters of comfort in the nature of letters of awareness that are outstanding at March 31, 2012 issued by the Bank
on behalf of its subsidiaries, aggregate to ` 24,238.9 million (March 31, 2011: ` 40,240.9 million). During the year ended
March 31, 2012, borrowings pertaining to letters of comfort aggregating ` 13,640.3 million were repaid and a letter was
withdrawn pertaining to facilities amounting to ` 2,675.7 million.

As advised by RBI, the Bank has provided additional capital of ` 1,033.5 million (March 31, 2011: ` 1,700.5 million) on
the letters of comfort that are in the nature of letters of awareness issued on behalf of its subsidiaries for their borrowing
programmes.

Related party balances
The following table sets forth, the balance payable to/receivable from subsidiaries/joint ventures/associates/other related
entities/key management personnel and relatives of key management personnel at March 31, 2012.

Items/Related party

Subsidiaries

Associates/ joint
ventures/other
related entities

Key
Management
Personnel

Relatives of Key
Management
Personnel

` in million

Total

Deposits with ICICI Bank ........

11,536.6

2,089.8

41.0

19.8

13,687.2

Deposits of ICICI Bank ...........

Call/term money lent ..............

Call/term money borrowed ....

717.9

4,568.7

—

Advances ................................

18,766.7

Investments of ICICI Bank ......

136,699.1

Investments of related parties
in ICICI Bank ............................

Receivables1 ............................

Payables1 .................................

310.3

637.0

27.3

Guarantees/letter of credit .....

13,546.8

Swaps/forward contracts
(notional amount) ...................

Employee stock options
outstanding (Numbers) ..........

Employee stock options
exercised2

168,433.0

—

1,004.8

3,484.7

15.0

0.2

202.8

0.1

—

9.2

—

4.1

—

2,701,500

0.9

—

7.4

—

717.9

4,568.7

—

19,788.1

140,183.8

329.4

637.2

230.1

13,546.9

168,433.0

2,701,500

0.9

1.
2.

Excludes mark-to-market on outstanding derivative transactions.
During the year ended March 31, 2012, 86,500 employee stock options were exercised, which have been reported at face value.

F46

schedules

forming part of the Accounts (Contd.)

The following table sets forth, the maximum balance payable to/receivable from subsidiaries/joint ventures/associates/
other related entities/key management personnel and relatives of key management personnel during the year ended
March 31, 2012.

Items/ Related party

Subsidiaries

Deposits with ICICI Bank ..........
Deposits of ICICI Bank ..............
Call/term money lent ................
Call/term money borrowed ......
Advances ..................................
Investments of ICICI Bank ........
Investments of related parties
in ICICI Bank1 .............................
Receivables ...............................
Payables1 ...................................
Guarantees/ letter of credit ......
Swaps/forward contracts
(notional amount) .....................

11,536.6
3,375.0
7,068.7
670.5
19,168.7
137,086.6

407.9
2,941.9
84.8
13,649.2

308,575.2

Associates/ joint
ventures/other
related entities
3,150.6
—
—
—
1,004.8
7,513.0

15.0
154.11
266.7
0.1

—

Key
Management
Personnel

Relatives of Key
Management
Personnel

64.0
—
—
—
10.7
—

4.1
—
—
—

—

27.3
—
—
—
9.2
—

—
—
—
—

—

` in million
Total

14,778.5
3,375.0
7,068.7
670.5
20,193.4
144,599.6

427.0
3,096.0
351.5
13,649.3

308,575.2

1. Maximum balances are determined based on comparison of the total outstanding balances at each quarter end during the

financial year.

The following table sets forth, the balance payable to/receivable from subsidiaries/joint ventures/associates/other related
entities/key management personnel and relatives of key management personnel at March 31, 2011.

Items/ Related party

Subsidiaries

Deposits with ICICI Bank ..........

Deposits of ICICI Bank .............

Call/term money lent ................

Call/term money borrowed ......

Advances ..................................

Investments of ICICI Bank ........

Investments of related parties
in ICICI Bank ..............................

Receivables1 ..............................

Payables1 ...................................

9,028.7

117.8

—

18,162.2

135,409.7

387.2

516.8

69.0

Guarantees/ letter of credit ......

5,975.9

Swaps/forward contracts
(notional amount) .....................

Employee stock options
outstanding (Number) ..............

Employee stock options
exercised2 ................................

271,676.7

—

Associates/joint
ventures/other
related entities

Key
Management
Personnel

Relatives of Key
Management
Personnel

` in million
Total

1,572.2

—

44.3

7,518.6

15.0

188.2

117.8

0.1

—

35.8

—

10.6

—

3.5

—

2,263,000

—

12.1

10,648.8

—

7.7

—

117.8

—

18,224.8

142,928.3

405.7

705.0

186.8

5,976.0

271,676.7

2,263,000

—

1.
2.

Excludes mark-to-market on outstanding derivative transactions.
During the year ended March 31, 2011, no employee stock options were exercised.

F47

schedules

forming part of the Accounts (Contd.)

Items/Related party

Subsidiaries

Associates/ joint
ventures/other
related entities

Key
Management
Personnel

Relatives of Key
Management
Personnel

` in million
Total

Deposits with ICICI Bank ........

13,241.6

2,285.9

37.0

21.2

15,585.7

Deposits of ICICI Bank ...........

Call/term money lent ..............

Call/term money borrowed ....

164.7

6,235.3

2,990.0

Advances ...............................

22,118.6

Investments of ICICI Bank ......

138,972.5

Investments of related parties
in ICICI Bank1 ...........................

Receivables .............................

Payables1 .................................

Guarantees/ letter of credit ...

Swaps/forward contracts
(notional amount) ...................

564.6

4,223.4

662.8

5,976.8

305,497.6

—

78.8

10,358.1

15.0

261.31

117.9

0.1

—

11.1

—

3.5

—

9.1

—

164.7

6,235.3

2,990.0

22,217.6

149,330.6

583.1

4,484.7

780.7

5,976.9

305,497.6

1. Maximum balances are determined based on comparison of the total outstanding balances at each quarter end during the financial year.

43. Small and micro enterprises

Under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which came into force from October
2, 2006, certain disclosures are required to be made relating to enterprises covered under the Act. During the year ended
March 31, 2012, the amount paid after the due date to vendors registered under the MSMED Act, 2006 was ` 7.1 million
(March 31, 2011: ` 17.9 million). An amount of ` 0.1 million (March 31, 2011: ` 0.7 million) has been charged to profit &
loss account towards accrual of interest on these delayed payments.

44. Penalties/fines imposed by RBI and other banking regulatory bodies

The penalty imposed by RBI and other banking regulatory bodies during the year ended March 31, 2012 was ` 1,510,000
(March 31, 2011: ` 510,000). RBI imposed a penalty of ` 1,500,000 in April 2011 on the Bank towards non-compliance
of certain instructions issued by RBI in respect of derivative business and in February 2012, RBI imposed a penalty of
` 10,000 under section 11(3) of FEMA, 1999 with regard to delay in reporting a FDI transaction. The Bank has paid the
penalties to RBI.

45. Disclosure of complaints

The following table sets forth, for the periods indicated, the movement of the outstanding number of complaints.

Particulars

a) No. of complaints pending at the beginning of the year ...............................
b) No. of complaints relating to erstwhile Bank of Rajasthan at August 12, 2010

c) No. of complaints received during the year ...................................................

d) No. of complaints redressed during the year ................................................
e) No. of complaints pending at the end of the year .........................................

Year ended
March 31, 2012
3,024
—

Year ended
March 31, 2011
2,102
57

155,115

154,302
3,837

155,4751

154,610
3,024

1.
2.

Includes complaints received relating to erstwhile Bank of Rajasthan from August 13, 2010.
Does not include complaints redressed within 1 working day.

F48

schedules

forming part of the Accounts (Contd.)

The following table sets forth, for the periods indicated, the details of awards during the year.

Particulars

a) No. of unimplemented awards at the beginning of the year ........................

b) No. of unimplemented awards relating to erstwhile Bank of Rajasthan at

August 12, 2010 ...............................................................................................

c) No. of awards passed by the Banking Ombudsmen during the year ...........

d) No. of awards implemented during the year .................................................

e) No. of unimplemented awards at the end of the year ...................................

Year ended
March 31, 2012

Year ended
March 31, 2011

—

These unimplemented awards had become null and void as the appeal preferred before Appellate Authority for the same has
been upheld.

46. Drawdown from reserves

There has been no draw down from reserves during the year ended March 31, 2012 (March 31, 2011: ` 1,160.0 million
from investment reserve account).

47. Comparative figures

Figures of the previous year have been re-grouped to conform to the current year presentation.

Signatures to Schedules 1 to 18

FOR S.R. BATLIBOI & Co.
Firm’s Registration no.: 301003E
Chartered Accountants

SHRAWAN JALAN
Partner
Membership no.: 102102

For and on behalf of the Board of Directors

K. V. KAMATH
Chairman

SRIDAR IYENGAR

CHANDA KOCHHAR
Director Managing Director & CEO

N. S. KANNAN
Executive Director & CFO

K. RAMKUMAR
Executive Director

RAJIV SABHARWAL
Executive Director

Place : Mumbai
Date : April 27, 2012

SANDEEP BATRA
Group Compliance Officer &

RAKESH JHA
Deputy Chief

Company Secretary

Financial Officer

F49

section 212

Statement pursuant to Section 212 of the Companies Act, 1956, relating to subsidiary companies

Sr.
No.

Name of the subsidiary company

Financial year of the
subsidiary ended on

No. of equity shares held by ICICI Bank and/or its nominees in
the subsidiary at March 31, 2012

ICICI Securities Primary Dealership Limited

March 31, 2012

15,634 equity shares of ` 100,000 each fully paid up

ICICI Securities Limited

March 31, 2012

805,353,500 equity shares of ` 2 each, fully paid up

ICICI Securities Holdings Inc.3

March 31, 2012

16,640,000 common stock of USD 1 each fully paid up held by
ICICI Securities Limited

ICICI Securities Inc.3

March 31, 2012

12,380,000 common stock of USD 1 each fully paid up held by
ICICI Securities Holdings Inc.

ICICI Venture Funds Management Company Limited

March 31, 2012

1,000,000 equity shares of ` 10 each fully paid up

ICICI International Limited4

March 31, 2012

90,000 ordinary shares of USD 10 each fully paid up

ICICI Home Finance Company Limited

March 31, 2012

1,098,750,000 equity shares of ` 10 each fully paid up

ICICI Trusteeship Services Limited

March 31, 2012

50,000 equity shares of ` 10 each fully paid up

ICICI Investment Management Company Limited

March 31, 2012

10,000,700 equity shares of ` 10 each fully paid up

ICICI Prudential Life Insurance Company Limited

March 31, 2012

1,055,310,907 equity shares of ` 10 each fully paid up

ICICI Lombard General Insurance Company Limited

March 31, 2012

320,635,518 equity shares of ` 10 each fully paid up

ICICI Bank UK PLC4

March 31, 2012

545,000,000 ordinary shares of USD 1 each and 50,002 ordinary
shares of 1 GBP each

ICICI Bank Canada5, 8

December 31, 2011 839,500,000 common shares of Canadian Dollar (CAD) 1 each

ICICI Bank Eurasia Limited Liability Company#,6,8

December 31, 2011 Not Applicable #

ICICI Prudential Asset Management Company Limited March 31, 2012

9,002,573 equity shares of ` 10 each, fully paid up

ICICI Prudential Trust Limited

March 31, 2012

51,157 equity shares of ` 10 each, fully paid up

ICICI Prudential Pension Funds Management Company
Limited7

March 31, 2012

11,000,000 equity shares of ` 10 each, fully paid up held by
ICICI Prudential Life Insurance Company Limited

Extent of
interest of
ICICI Bank
in capital of
subsidiary

Net aggregate amount of profits/
(losses) of the subsidiary so far as it
concerns the members of ICICI Bank
and is not dealt with in the accounts
of ICICI Bank1

Net aggregate amount of profits/
(losses) of the subsidiary so far as
it concerns the members of ICICI
Bank dealt with or provided for in
the accounts of ICICI Bank2

` in '000s

For the financial
year ended
March 31, 2012

For the previous
financial years
of the subsidiary
since it became
a subsidiary

For the
financial
year ended
March 31,
2012

For the previous
financial years
of the subsidiary
since it became a
subsidiary

100.0%

73.9%

73.4%

100.0%

51.0%

50.8%

419,068

6,751,833

437,752

7,400,293

251,199

1,513,941

520,097

3,646,540

(143,961)

8,475

(524,312)

Nil

15,635

533,600

1,996,259

150,000

4,160,979

(4,411)

41,349

Nil

15,782

882,481

3,024,294

1,714,050

4,353,258

338

17,156

2,761

26,303

Nil

7,902,252

(19,451,256)

2,321,255

Nil

(3,057,522)

705,763

Nil

2,117,208

60,634

6,997,164

1,156,337

723,143

1,414,023

2,270,933

286,984

575,377

(228,605)

438,556

425,517

Nil

156,548

676,856

292,583

1,139,446

(157)

(329)

2,142

(139)

1,023

Nil

2,199

Nil

#
1.

2.
3.
4.
5.
6.
7.
8.

The shares in the authorised capital of ICICI Bank Eurasia Limited Liability Company are registered without issue of equity shares due to the legal form of the subsidiary.
The above companies (other than ICICI Bank UK PLC, ICICI Bank Canada, ICICI Bank Eurasia Limited Liability Company, ICICI Prudential Asset Management Company Limited, ICICI Prudential Trust Limited and ICICI Prudential Pension Funds
Management Company Limited) which were subsidiaries of erstwhile ICICI Limited have become subsidiaries of the Bank consequent to the merger of erstwhile ICICI Limited with ICICI Bank.
The amount received by erstwhile ICICI Limited upto March 29, 2002 as dividend has also been included in the reserves of ICICI Bank.
ICICI Securities Holdings Inc. is a wholly owned subsidiary of ICICI Securities Limited. ICICI Securities Inc. is a wholly owned subsidiary of ICICI Securities Holdings Inc.
The profits of ICICI Bank UK PLC and ICICI International Limited for the year ended March 31, 2012 have been translated into Indian Rupees at the rate of 1 USD = ` 47.9310.
The profits of ICICI Bank Canada for the year ended December 31, 2011 have been translated into Indian Rupees at the rate of 1 CAD = ` 47.6006.
The profits of ICICI Bank Eurasia Limited Liability Company for the year ended December 31, 2011 have been translated into Indian Rupees at the rate of 1 RUB = ` 1.6032.
ICICI Prudential Pension Funds Management Company Limited, a wholly owned subsidiary of ICICI Prudential Life Insurance Company Limited, was incorporated on April 22, 2009.
The information furnished for ICICI Bank Canada and ICICI Bank Eurasia Limited Liability Company is for the period January 1, 2011 to December 31, 2011, being their financial year.
The key financial parameters of the following companies at March 31, 2012 and their movement from December 31, 2011 are given below.

Particulars

Fixed assets

Investments

Advances
Borrowingsa

ICICI Bank Canadab

ICICI Bank Eurasia Limited Liability Companyc

At March 31, 2012

At December 31, 2011

Movement

At March 31, 2012

At December 31, 2011

90,189

54,105,651

201,762,384

66,916,508

101,754

59,274,040

209,261,417

63,247,134

(11,565)

(5,168,389)

(7,499,033)

3,669,374

48,520

881,090

10,379,087

8,790,145

52,352

840,137

8,829,992

9,235,802

` in ‘000s

Movement

(3,832)

40,954

1,549,095

(445,657)

a. Since it is not possible to identify the amount borrowed to meet the current liabilities, the amount shown above represents the total borrowings. The borrowings include subordinate debts and exclude preferred shares.
b. The financial parameters of ICICI Bank Canada have been translated into Indian Rupees at 1 CAD = ` 51.0425 at March 31, 2012 and 1 CAD = ` 51.9950 at December 31, 2011.
c. The financial parameters of ICICI Bank Eurasia Limited Liability Company have been translated into Indian Rupees at 1 RUB =` 1.76333 at March 31, 2012 and 1 RUB = ` 1.68465 at December 31, 2011.

K. V. KAMATH
Chairman

N. S. KANNAN
Executive Director & CFO

SANDEEP BATRA
Group Compliance Officer &
Company Secretary

SRIDAR IYENGAR
Director

K. RAMKUMAR
Executive Director

RAKESH JHA
Deputy Chief
Financial Officer

For and on behalf of the Board of Directors

CHANDA KOCHHAR
Managing Director & CEO

RAJIV SABHARWAL
Executive Director

Place: Mumbai
Date : April 27, 2012

F50

Consolidated financial statements of
ICICI Bank Limited and
its subsidiaries

auditors’ report

To the Board of Directors of ICICI Bank Limited on the Consolidated Financial
Statements of ICICI Bank Limited and its Subsidiaries, Associates and Joint Ventures.

1. We have audited the attached consolidated balance sheet of ICICI Bank Limited (the ‘Bank’) and its subsidiaries,
associates and joint ventures (the ‘ICICI Group’), as at March 31, 2012, and also the consolidated profit and loss account
and the consolidated cash flow statement for the year ended on that date annexed thereto. These financial statements
are the responsibility of ICICI Bank Limited’s management and have been prepared by the management on the basis of
separate financial statements and other financial information regarding components. Our responsibility is to express an
opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.

3. We did not audit the financial statements of certain subsidiaries, whose financial statements reflect total assets of
` 589,572 million as at March 31, 2012, total revenue of ` 70,495 million and cash flows amounting to ` 6,938 million
for the year then ended. These financial statements and other financial information have been audited by other auditors
whose reports have been furnished to us, and our opinion is based solely on the report of other auditors.

4. We did not audit the financial statements of Singapore, Bahrain, Hong Kong, Dubai, Qatar, Sri Lanka and New York- USA
branches, whose financial statements reflect total assets of ` 1,140,883 million as at March 31, 2012, total revenue of
`53,809 million for the year ended March 31, 2012 and net cash flows amounting to ` 119,605 million for the year then
ended. These financial statements have been audited by other auditors, duly qualified to acts as auditors in the country
of incorporation of the said branches, whose reports have been furnished to us, and our opinion is based solely on the
report of other auditors.

5. We have also relied on the un-audited financial statements of certain subsidiaries, associates and joint ventures, whose
financial statements reflect total assets of ` 30,130 million as at March 31, 2012, total revenues of ` 5,731 million and net
cash flows amounting to ` 1,052 million for the year then ended.

6. We have jointly audited, with other auditor, the financial statements of subsidiary which reflect total assets of ` 716,544
million as at March 31, 2012, total revenue of ` 176,204 million and cash flows amounting to ` 7,827 million for the year
then ended. For the purpose of the consolidated financial statements, we have relied upon the work of other auditors.

7. We report that the consolidated financial statements have been prepared by the ICICI Bank Limited’s management in
accordance with the requirements of Accounting Standards (AS) 21, Consolidated financial statements, Accounting
Standards (AS) 23, Accounting for Investments in Associates in Consolidated Financial Statements and Accounting
Standard (AS) 27, Financial Reporting of Interests in Joint Ventures notified pursuant to the Companies (Accounting
Standards) Rules, 2006, (as amended).

The actuarial valuation of liabilities for life policies in force is the responsibility of the ICICI Group’s life insurance
subsidiary’s appointed actuary (the Appointed Actuary). The actuarial valuation of these liabilities as at March 31, 2012
has been duly certified by the Appointed Actuary and in his opinion the assumptions for such valuation are in accordance
with the guidelines and norms issued by the Insurance Regulatory and Development authority (IRDA’) and the Actuarial
Society in concurrence with the IRDA. The statutory auditors of ICICI Prudential Life Insurance Company Limited have
relied upon appointed Actuary’s certificate in this regard.

F52

auditors’ report

The actuarial valuation of liability in respect of claims incurred but not reported (‘IBNR’) and those incurred but not
enough reported (‘IBNER’) are the responsibility of the ICICI Group’s general insurance subsidiary’s appointed actuary
(the Appointed Actuary). The actuarial valuation of these liabilities as at March 31, 2012 has been duly certified by the
Appointed Actuary and in his opinion the assumptions for such valuation are in accordance with the guidelines and
norms issued by the Insurance Regulatory and Development authority (IRDA’) and the Actuarial Society in concurrence
with the IRDA. The statutory auditors of ICICI Lombard General Insurance Company Limited have relied upon appointed
Actuary’s certificate in this regard.

10. Based on our audit and on consideration of reports of other auditors and branches auditors on separate financial
statements and other financial information of the components, and the consideration of the un-audited financial
statements, and to the best of our information and according to the explanations given to us, we are of the opinion that
the attached consolidated financial statements give a true and fair view in conformity with the accounting principles
generally accepted in India:

(a)
(b)
(c)

in the case of the consolidated balance sheet, of the state of affairs of the ICICI Group as at March 31, 2012;
in the case of the consolidated profit and loss account, of the profit for the year ended on that date; and
in the case of the consolidated cash flow statement, of the cash flows for the year ended on that date.

For S.R. Batliboi & Co.
Firm registration number: 301003E
Chartered Accountants

per Shrawan Jalan
Partner
Membership No.: 102102

Mumbai
April 27, 2012

F53

consolidated balance sheet

at March 31, 2012

(` in ‘000s)

Schedule

At
31.03.2012

At
31.03.2011

CAPITAL AND LIABILITIES

Capital ...............................................................................................

Employees stock options outstanding ............................................

Reserves and surplus .......................................................................

11,527,683

11,518,200

23,854

2,929

601,213,423

541,503,823

Minority interest ...............................................................................

14,277,247

13,582,218

Deposits ............................................................................................

Borrowings .......................................................................................

Liabilities on policies in force ..........................................................

Other liabilities and provisions ........................................................

TOTAL CAPITAL AND LIABILITIES .................................................

ASSETS

Cash and balances with Reserve Bank of India ..............................

Balances with banks and money at call and short notice ..............

Investments ......................................................................................

Advances ..........................................................................................

Fixed assets ......................................................................................

Other assets ......................................................................................

2,819,504,736

2,591,060,049

1,612,966,218

1,258,388,602

662,294,640

644,820,556

320,106,314

276,802,280

6,041,914,115

5,337,678,657

207,281,806

212,340,063

204,281,077

181,512,556

2,398,640,912

2,096,527,791

2,921,254,179

2,560,193,137

54,319,822

54,895,477

256,136,319

232,209,633

TOTAL ASSETS ................................................................................

6,041,914,115

5,337,678,657

Contingent liabilities ........................................................................

10,375,591,283

10,225,996,643

Bills for collection ............................................................................

76,129,947

85,304,043

Significant accounting policies and notes to accounts .................

17 & 18

The schedules referred to above form an integral part of the Balance Sheet.

As per our Report of even date.

FOR S.R. BATLIBOI & CO.
Firm’s Registration no.: 301003E
Chartered Accountants

SHRAWAN JALAN
Partner
Membership no.: 102102

Place : Mumbai
Date : April 27, 2012

F54

For and on behalf of the Board of Directors

K. V. KAMATH
Chairman

SRIDAR IYENGAR

CHANDA KOCHHAR
Director Managing Director & CEO

N. S. KANNAN
Executive Director & CFO

K. RAMKUMAR
Executive Director

RAJIV SABHARWAL
Executive Director

SANDEEP BATRA
Group Compliance Officer &
Company Secretary

RAKESH JHA
Deputy Chief
Financial Officer

consolidated profit and loss account

for the year ended March 31, 2012

(` in ‘000s)

Schedule

Year ended
31.03.2012

Year ended
31.03.2011

13
14

15
16

II.

III.

INCOME
Interest earned ........................................................................
Other income ..........................................................................
TOTAL INCOME ......................................................................

EXPENDITURE
Interest expended ...................................................................
Operating expenses ...............................................................
Provisions and contingencies (refer note 18.7) ....................
TOTAL EXPENDITURE ...........................................................

PROFIT/(LOSS)
Net profit for the year .............................................................
Less: Minority interest ............................................................
Net profit/(loss) after minority interest ...............................
Profit/(loss) brought forward ..................................................
TOTAL PROFIT/(LOSS) ..........................................................

IV. APPROPRIATIONS/TRANSFERS

Transfer to Statutory Reserve ................................................
Transfer to Reserve Fund .......................................................
Transfer to Capital Reserve ....................................................
Transfer to/(from) Investment Reserve Account ...................
Transfer to Special Reserve ...................................................
Transfer to Revenue and other reserves ...............................
Dividend (including corporate dividend tax) for the
previous year paid during the year ........................................
Proposed equity share dividend ............................................
Proposed preference share dividend ....................................
Corporate dividend tax ..........................................................
Balance carried over to balance sheet ..................................
TOTAL .....................................................................................

Significant accounting policies and notes to accounts ..................
Earnings per share (refer note 18.1)

Basic (`) ..................................................................................
Diluted (`) ................................................................................
Face value per share (`) ..................................................................

17 & 18

The schedules referred to above form an integral part of the Profit and Loss Account.

379,948,587
286,634,177
666,582,764

250,132,455
295,520,458
41,553,508
587,206,421

79,376,343
2,946,988
76,429,355
40,077,613
116,506,968

16,170,000
10,665
380,000
—
7,020,000
1,877,920

4,284
19,020,400
35
3,257,185
68,766,479
116,506,968

66.33
66.06
10.00

300,814,041
315,133,003
615,947,044

193,425,685
313,024,545
46,314,873
552,765,103

63,181,941
2,249,269
60,932,672
16,886,406
77,819,078

12,880,000
360
832,500
(1,160,000)
5,720,000
679,371

21,658
16,125,811
35
2,641,730
40,077,613
77,819,078

53.54
53.25
10.00

As per our Report of even date.

For S.R. BATLIBOI & CO.
Firm’s Registration no.: 301003E
Chartered Accountants

SHRAWAN JALAN
Partner
Membership no.: 102102

Place : Mumbai
Date : April 27, 2012

For and on behalf of the Board of Directors

K. V. KAMATH
Chairman

SRIDAR IYENGAR

CHANDA KOCHHAR
Director Managing Director & CEO

N. S. KANNAN
Executive Director & CFO

K. RAMKUMAR
Executive Director

RAJIV SABHARWAL
Executive Director

SANDEEP BATRA
Group Compliance Officer &
Company Secretary

RAKESH JHA
Deputy Chief
Financial Officer

F55

consolidated cash flow statement

for the year ended March 31, 2012

(` in ‘000s)

Particulars

Cash flow from operating activities
Profit before taxes ..........................................................................................
Adjustments for :
Depreciation and amortisation .....................................................................
Net (appreciation)/depreciation on investments .........................................
Provision in respect of non-performing assets (including prudential
provision on standard assets) .......................................................................
Provision for contingencies & others ............................................................
(Profit)/loss on sale of fixed assets ...............................................................
Employee stock options grants ....................................................................

Adjustments for :
(Increase)/decrease in investments ..............................................................
(Increase)/decrease in advances ..................................................................
Increase/(decrease) in borrowings ...............................................................
Increase/(decrease) in deposits ....................................................................
(Increase)/decrease in other assets ..............................................................
Increase/(decrease) in other liabilities and provisions ................................

Refund/(payment) of direct taxes .................................................................
Net cash flow from/(used in) operating activities .....................................
Cash flow from investing activities .............................................................
Purchase of fixed assets ................................................................................
Proceeds from sale of fixed assets ...............................................................
(Purchase)/sale of held to maturity securities ..............................................
Net cash used in investing activities ..........................................................
Cash flow from financing activities
Proceeds from issue of share capital (including ESOPs) .............................
Net proceeds/(repayment) of bonds (including subordinated debt) ..........
Dividend and dividend tax paid ....................................................................
Net cash generated from financing activities .............................................
Effect of exchange fluctuation on translation reserve ...............................
Net cash and cash equivalents taken over from
erstwhile The Bank of Rajasthan Limited on amalgamation ....................
Net increase/(decrease) in cash and cash equivalents (A)+(B)+(C)+(D)+(E)
Cash and cash equivalents at the beginning of the year ..........................
Cash and cash equivalents at end of the year ...........................................

(A)

(B)

(E)

Significant accounting policies and notes to accounts (refer schedule 17 & 18).
The schedules referred to above form an integral part of the Balance Sheet.

Year ended
31.03.2012

Year ended
31.03.2011

103,919,499

81,647,759

7,546,097
7,773,019

10,789,101
2,100,543
37,180
93,240
132,258,679

(126,076,483)
(335,829,069)
276,971,782
228,444,687
(24,703,198)
83,850,256
102,657,975
(26,082,984)
208,833,670

(6,054,398)
180,758
(206,755,330)
(212,628,970)

591,128
35,843,538
(19,013,434)
17,421,232
4,084,332

–
17,710,264
393,852,619
411,562,883

8,576,451
14,541,573

20,555,297
1,881,817
(299,958)
2,929
126,905,868

(79,202,742)
(261,585,581)
75,360,723
40,049,589
25,485,114
58,657,380
(141,235,517)
(22,046,919)
(36,376,568)

(8,940,934)
707,207
(52,576,194)
(60,809,921)

1,426,887
20,712,924
(15,567,579)
6,572,232
1,253,363

11,772,300
(77,588,594)
471,441,213
393,852,619

As per our Report of even date.

For S.R. BATLIBOI & CO.
Firm’s Registration no.: 301003E
Chartered Accountants

SHRAWAN JALAN
Partner
Membership no.: 102102

Place : Mumbai
Date : April 27, 2012

F56

For and on behalf of the Board of Directors

K. V. KAMATH
Chairman

SRIDAR IYENGAR

CHANDA KOCHHAR
Director Managing Director & CEO

N. S. KANNAN
Executive Director & CFO

K. RAMKUMAR
Executive Director

RAJIV SABHARWAL
Executive Director

SANDEEP BATRA
Group Compliance Officer &
Company Secretary

RAKESH JHA
Deputy Chief
Financial Officer

schedules

forming part of the Consolidated Balance Sheet

SCHEDULE 1 - CAPITAL

Authorised capital
1,275,000,000 equity shares of ` 10 each
(March 31, 2011: 1,275,000,000 equity shares of ` 10 each) ..............................
15,000,000 shares of ` 100 each
(March 31, 2011: 15,000,000 shares of ` 100 each)1 ...........................................
350 preference shares of ` 10 million each
(March 31, 2011: 350 preference shares of ` 10 million each)2 ..........................

Equity share capital

Issued, subscribed and paid-up capital

1,151,772,372 equity shares of ` 10 each
(March 31, 2011: 1,114,845,314 equity shares) ...................................................
Add: Nil equity shares of ` 10 each fully paid up issued to shareholders of erstwhile
The Bank of Rajasthan Limited (March 31, 2011 : 34,184,121 equity shares) ............

Less: Nil equity shares of the Bank, earlier held by erstwhile The Bank of
Rajasthan Limited, extinguished on amalgamation (March 31, 2011 : 200
equity shares) ........................................................................................................
Add: 942,070 equity shares of ` 10 each fully paid up (March 31, 2011:
2,743,137 equity shares) issued pursuant to exercise of employee stock options

At
31.03.2012

(` in ‘000s)

At
31.03.2011

12,750,000

1,500,000

3,500,000

11,517,723

11,148,453

—

341,841

(2)

27,431
11,517,723
(293)
Less: Calls unpaid .................................................................................................
770
Add: 111,603 equity shares forfeited (March 31, 2011: 111,603 equity shares)
TOTAL CAPITAL ....................................................................................................
11,518,200
1. These shares will be of such class and with such rights, privileges, conditions or restrictions as may be determined by
the Bank in accordance with the Articles of Association of the Bank and subject to the legislative provisions in force for
the time being in that behalf.

9,421
11,527,144
(231)
770
11,527,683

2. Pursuant to RBI circular no. DBOD.BP.BC No.81/ 21.01.002/2009-10, the issued and paid-up preference shares are

grouped under Schedule 4- “Borrowings”.

SCHEDULE 2 - RESERVES AND SURPLUS
I. Statutory reserve
Opening balance ...........................................................................................
Additions during the year1 ............................................................................
Deductions during the year ..........................................................................
Closing balance ..............................................................................................
II. Special reserve
Opening balance ...........................................................................................
Additions during the year .............................................................................
Deductions during the year ..........................................................................
Closing balance .............................................................................................
III. Securities premium
Opening balance ...........................................................................................
Additions during the year2 ............................................................................
Deductions during the year3 .........................................................................
Closing balance .............................................................................................
IV. Investment reserve account
Opening balance .............................................................................................
Additions during the year ...............................................................................
Deductions during the year4 ...........................................................................
Closing balance ...............................................................................................

73,746,519
16,170,000
—
89,916,519

33,551,700
7,020,000
—
40,571,700

313,321,891
653,961
—
313,975,852

—
—
—
—

58,863,807
14,882,712
—
73,746,519

27,831,700
5,720,000
—
33,551,700

313,801,906
1,617,958
2,097,973
313,321,891

1,160,000
—
1,160,000
—

F57

schedules

forming part of the Consolidated Balance Sheet (Contd.)

(` in ‘000s)

At
31.03.2012

At
31.03.2011

V. Unrealised investment reserve5
Opening balance .............................................................................................
Additions during the year ...............................................................................
Deductions during the year ............................................................................
Closing balance ..............................................................................................
VI. Capital reserve
Opening balance .............................................................................................
Additions during the year6 ..............................................................................
Deductions during the year ............................................................................
Closing balance7 ..............................................................................................
VII. Foreign currency translation reserve
Opening balance .............................................................................................
Additions during the year ...............................................................................
Deductions during the year ............................................................................
Closing balance ..............................................................................................
VIII. Reserve fund
Opening balance ............................................................................................
Additions during the year8 ..............................................................................
Deductions during the year ............................................................................
Closing balance ..............................................................................................
IX. Revenue and other reserves
Opening balance - joint ventures....................................................................
Opening balance - others ...............................................................................
Additions during the year - joint ventures ....................................................
Additions during the year - others9,10..............................................................
Deductions during the year - joint ventures...................................................
Deductions during the year - others ..............................................................
Closing balance11,12 ..........................................................................................
X. Balance in profit and loss account - others .................................................
Addition/(deductions): Adjustments13 ..........................................................
Balance in profit and loss account - others ..................................................
XI. Balance in profit and loss account - joint ventures ......................................
TOTAL RESERVES AND SURPLUS

(1,537,717)
1,749,967
126,799
85,451

21,707,857
380,000
—
22,087,857

6,345,887
10,995,811
6,939,164
10,402,534

11,279
10,665
—
21,944

(2,687)
54,281,481
—
3,331,588
—
1,507,501
56,102,881
68,766,479
(717,794)
68,048,685
—
601,213,423

(521,469)
97,939
1,114,187
(1,537,717)

20,875,357
832,500
—
21,707,857

5,092,984
1,961,480
708,577
6,345,887

10,919
360
—
11,279

(2,687)
57,817,185
—
1,766,237
—
5,301,941
54,278,794
40,081,420
—
40,081,420
(3,807)
541,503,823

2.
3. Represents excess of paid up value of equity shares issued over the fair value of the net assets acquired on amalgamation with erstwhile The Bank of

Rajasthan Limited and amalgamation expenses at March 31, 2011.

4. Represents the amount utilised for provision made during the year towards depreciation in investments in available for sale and held for

trading categories.

5. Represents unrealised profit/(loss) pertaining to the investments of venture capital funds.
6.

Includes profit on sale of investments in held to maturity category, net of taxes and transfer to Statutory Reserve. Also includes profit on sale of land
buildings, net of taxes and transfer to Statutory Reserve.
Includes capital reserve on consolidation amounting to ` 82.2 million (March 31, 2011: ` 82.2 million).
Includes appropriations made to Reserve Fund and Investment Fund account in accordance with regulations applicable to Sri Lanka branch.

7.
8.
9. Refer item 14 in schedule-18.
10. At March 31, 2012 includes ` 50.4 million (March 31, 2011:Nil) transferred to General reserve in terms of RBI circular no. DBOD.No.BP.BC.

11.

26/21.04.048/2008-09 dated July 30, 2008, on Agricultural Debt Waiver and Debt Relief Scheme, 2008.
Includes unrealised profit/(loss), net of tax, of ` (2,037.9) million [March 31, 2011: ` (3,258.6) million] pertaining to the investments in the available for
sale category of ICICI Bank UK PLC.
Includes restricted reserve of ` 4,753.8 million (March 31, 2011: ` 6,222.3 million) primarily relating to lapsed contracts of the life insurance subsidiary.
12.
13. Represents the impact of ` 717.8 million on account of transition of the financial statements of ICICI Bank Canada from Canadian GAAP to International

Financial Reporting Standards (IFRS). Refer item 17 in schedule-18.

F58

schedules

forming part of the Consolidated Balance Sheet (Contd.)

SCHEDULE 2A - MINORITY INTEREST
Opening minority interest .......................................................................................
Subsequent increase/(decrease) ............................................................................
CLOSING MINORITY INTEREST ............................................................................

SCHEDULE 3 - DEPOSITS
I. Demand deposits
A.

i)
From banks .......................................................................................
ii) From others .......................................................................................
II. Savings bank deposits ............................................................................
III. Term deposits

i)
From banks ........................................................................................
ii) From others ......................................................................................
TOTAL DEPOSITS ...................................................................................................
I. Deposits of branches in India .................................................................
B.
II. Deposits of branches/subsidiaries outside India ...................................
TOTAL DEPOSITS ...................................................................................................

SCHEDULE 4 - BORROWINGS
I. Borrowings in India

i)
Reserve Bank of India ..............................................................................
ii) Other banks .............................................................................................
iii) Other institutions and agencies

a) Government of India .......................................................................
Financial institutions/others ............................................................
b)

iv) Borrowings in the form of

a) Deposits ...........................................................................................
Commercial paper ...........................................................................
b)
Bonds and debentures (excluding subordinated debt)1 ................
c)
v) Application money-bonds .......................................................................
vi) Capital instruments

- Innovative Perpetual Debt Instruments (IPDI) (qualifying as Tier I capital)..
- Hybrid debt capital instruments issued as bonds/debentures
(qualifying as upper Tier II capital) .......................................................
- Redeemable Non-Cumulative Preference Shares (RNCPS)
(Redeemable Non-Cumulative Preference Shares of ` 10 million
each issued to preference share holders of erstwhile ICICI Limited
on amalgamation redeemable at par on April 20, 2018) ......................
- Unsecured redeemable debentures/bonds (subordinated debt included in
Tier II capital) ...........................................................................................

TOTAL BORROWINGS IN INDIA
II. Borrowings outside India

Capital instruments
- Innovative Perpetual Debt Instruments (IPDI) (qualifying as Tier I capital)..
- Hybrid debt capital instruments issued as bonds/debentures
(qualifying as upper Tier II capital) .......................................................
- Unsecured redeemable debentures/bonds(subordinated debt included in
Tier II capital) ...........................................................................................
ii)
Bonds and notes ......................................................................................
iii) Other borrowings2 ...................................................................................
TOTAL BORROWINGS OUTSIDE INDIA ...............................................................
TOTAL BORROWINGS ...........................................................................................

At
31.03.2012

13,582,218
695,029
14,277,247

19,679,064
339,015,263
829,071,333

98,704,681
1,533,034,395
2,819,504,736
2,416,126,468
403,378,268
2,819,504,736

183,985,000
45,759,565

52,813
85,884,260

5,945,563
13,033,986
14,030,626
—

(` in ‘000s)

At
31.03.2011

12,704,046
878,172
13,582,218

20,176,015
334,537,779
732,637,812

153,559,266
1,350,149,177
2,591,060,049
2,132,983,708
458,076,341
2,591,060,049

5,000,000
63,186,638

299,581
89,874,799

18,959,593
7,019,749
21,331,106
—

13,010,000

98,181,421

98,188,633

3,500,000

206,416,361
669,799,595

201,316,236
521,686,335

17,244,895

15,106,107

49,944,301

43,926,075

12,271,840
342,264,313
521,441,274
943,166,623
1,612,966,218

14,553,006
294,843,311
368,273,768
736,702,267
1,258,388,602

1.
2.
3.

Includes borrowings guaranteed by Government of India amounting to Nil (March 31, 2011: ` 4,367.5 million).
Includes borrowings guaranteed by Government of India for the equivalent of ` 16,358.1 million (March 31, 2011: ` 16,515.0 million).
Secured borrowings in I and II above are ` 77,175.5 million (March 31, 2011: ` 15,403.1 million) except borrowings under Collateralised
Borrowing and Lending Obligation, market repurchase transactions with banks and financial institutions and transactions under Liquidity
Adjustment Facility with RBI.

F59

schedules

forming part of the Consolidated Balance Sheet (Contd.)

(` in ‘000s)

At
31.03.2012

At
31.03.2011

SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS

II.

III.

IV.

Bills payable ...................................................................................................

37,974,191

35,615,550

Inter-office adjustments (net credit) .............................................................

3,076,441

Interest accrued .............................................................................................

34,553,656

Sundry creditors ............................................................................................

111,053,333

Provision for standard assets ........................................................................

17,529,163

—

32,569,903

89,239,928

16,909,115

VI. Others1 ...........................................................................................................

115,919,530

102,467,784

TOTAL OTHER LIABILITIES AND PROVISIONS ...................................................

320,106,314

276,802,280

1. Includes:

a) Proposed dividend amounting to ` 19,020.4 million (March 31, 2011: ` 16,125.8 million).
b) Corporate dividend tax payable of ` 2,524.3 million (March 31, 2011: ` 2,254.2 million).

SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA

I. Cash in hand (including foreign currency notes) ........................................

49,362,026

41,109,739

II. Balances with Reserve Bank of India in current accounts ...........................

157,919,780

171,230,324

TOTAL CASH AND BALANCES WITH RESERVE BANK OF INDIA .....................

207,281,806

212,340,063

SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND
SHORT NOTICE

In India

Balances with banks

in current accounts ......................................................................

3,901,946

in other deposit accounts ...........................................................

56,200,514

ii) Money at call and short notice

a) with banks ....................................................................................

b) with other institutions .................................................................

5,087,500

7,231,647

5,864,648

55,013,756

9,600,000

3,180,818

TOTAL ....................................................................................................................

72,421,607

73,659,222

II. Outside India

ii)

in current accounts ...............................................................................

25,520,589

in other deposit accounts ....................................................................

35,288,381

iii) Money at call and short notice ............................................................

71,050,500

25,140,674

11,408,038

71,304,622

TOTAL .....................................................................................................................

131,859,470

107,853,334

TOTAL BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE

204,281,077

181,512,556

F60

schedules

forming part of the Consolidated Balance Sheet (Contd.)

(` in ‘000s)

SCHEDULE 8 - INVESTMENTS
I.

Investments in India (net of provisions)
Government securities .........................................................................
i)
Other approved securities ..................................................................
ii)
Shares (includes equity and preference shares)1 ..............................
iii)
iv) Debentures and bonds ........................................................................
Assets held to cover linked liabilities of life insurance business ......

vi) Others (commercial paper, mutual fund units, pass through

certificates, security receipts, certificate of deposits, Rural
Infrastructure Development Fund deposits and other related
investments etc.) ..................................................................................
TOTAL INVESTMENTS IN INDIA ..........................................................................

II.

Investments outside India (net of provisions)
i)
ii)

Government securities .........................................................................
Others ...................................................................................................
TOTAL INVESTMENTS OUTSIDE INDIA ..............................................................
TOTAL INVESTMENTS ..........................................................................................

At
31.03.2012

At
31.03.2011

993,524,949
4,250
41,536,762
254,442,730
578,173,746

732,979,973
356,398
41,536,041
206,459,725
588,265,347

410,125,260
2,277,807,697

388,530,238
1,958,127,722

67,140,077
53,693,138
120,833,215
2,398,640,912

54,619,909
83,780,160
138,400,069
2,096,527,791

III. Investments in India

Gross value of investments2 .........................................................................
Less: Aggregate of provision/depreciation/(appreciation) ..........................
Net investments.............................................................................................

2,305,164,599
27,356,902
2,277,807,697

1,984,587,186
26,459,464
1,958,127,722

IV. Investments outside India

Gross value of investments ..........................................................................
Less: Aggregate of provision/depreciation/(appreciation) ..........................
Net investments.............................................................................................
TOTAL INVESTMENTS ..........................................................................................

123,846,674
3,013,459
120,833,215
2,398,640,912

141,810,619
3,410,550
138,400,069
2,096,527,791

1.
2.

Includes acquisition cost of investment in associates of ` 494.9 million (March 31, 2011: ` 578.7 million).
Includes appreciation of ` 27,322.5 million (appreciation in March 31, 2011: ` 72,320.7 million) on investments held to cover linked liabilities of
life insurance business.

SCHEDULE 9 - ADVANCES (net of provisions)
A.

i)
Bills purchased and discounted ...............................................................
ii) Cash credits, overdrafts and loans repayable on demand .....................
iii) Term loans ................................................................................................
iv) Securitisation, finance lease and hire purchase receivables ..................
TOTAL ADVANCES ...........................................................................................................
Secured by tangible assets [includes advances against book debts] ...
B.
i)
ii) Covered by bank/government guarantees ..............................................
iii) Unsecured .................................................................................................
TOTAL ADVANCES ..........................................................................................................
C.

Advances in India
Priority sector ............................................................................................
i)
ii)
Public sector ..............................................................................................
iii) Banks .........................................................................................................
iv) Others .......................................................................................................

TOTAL ADVANCES IN INDIA

II.

Advances outside India
i)
ii) Due from others

Due from banks .........................................................................................

59,774,883
322,483,353
2,319,891,049
219,104,894
2,921,254,179
2,426,141,317
13,869,020
481,243,842
2,921,254,179

592,856,433
11,968,345
154,618
1,290,662,186
1,895,641,582

70,301,265
307,352,546
2,057,775,362
124,763,964
2,560,193,137
1,922,059,342
27,057,409
611,076,386
2,560,193,137

534,015,609
13,788,639
1,810,607
1,132,200,854
1,681,815,709

27,655,594

43,708,080

a) Bills purchased and discounted ......................................................
b) Syndicated and term loans .............................................................
c) Others ..............................................................................................
TOTAL ADVANCES OUTSIDE INDIA ...............................................................................
TOTAL ADVANCES ...........................................................................................................

6,357,136
845,174,352
146,425,515
1,025,612,597
2,921,254,179

11,610,861
752,209,407
70,849,080
878,377,428
2,560,193,137

F61

schedules

forming part of the Consolidated Balance Sheet (Contd.)

(` in ‘000s)

At
31.03.2012

At
31.03.2011

SCHEDULE 10 - FIXED ASSETS
I. Premises
At cost at March 31 of preceding year ..........................................................
Additions during the year1 .............................................................................
Deductions during the year ...........................................................................
Depreciation to date ......................................................................................
Net block ........................................................................................................
II. Other fixed assets (including furniture and fixtures)
At cost at March 31 of preceding year ..........................................................
Additions during the year1 .............................................................................
Deductions during the year ...........................................................................
Depreciation to date ......................................................................................
Net block ........................................................................................................
III. Assets given on Lease
At cost at March 31 of preceding year ..........................................................
Additions during the year ..............................................................................
Deductions during the year ...........................................................................
Depreciation to date, accumulated lease adjustment and provisions ........
Net block .........................................................................................................
TOTAL FIXED ASSETS ...........................................................................................

1. Includes assets acquired from erstwhile The Bank of Rajasthan Limited.

SCHEDULE 11 - OTHER ASSETS
I. Inter-office adjustments (net debit) ..............................................................
II.
Interest accrued ............................................................................................
III. Tax paid in advance/tax deducted at source (net) ......................................
IV. Stationery and stamps .................................................................................
V. Non-banking assets acquired in satisfaction of claims1 .............................
VI. Advance for capital assets ...........................................................................
VII. Deposits ........................................................................................................
VIII. Deferred tax asset (net) ................................................................................

IX. Others2 ..........................................................................................................
TOTAL OTHER ASSETS .........................................................................................

45,902,791
1,656,184
(591,807)
(9,383,551)
37,583,617

41,441,024
4,441,598
(746,961)
(30,793,785)
14,341,876

17,510,087
—
(543)
(15,115,215)
2,394,329
54,319,822

—
53,644,915
38,176,875
10,308
600,575
1,494,098
12,144,123
28,033,693

122,031,732
256,136,319

28,681,193
18,438,137
(1,216,539)
(8,156,035)
37,746,756

36,232,085
6,665,154
(1,456,215)
(26,862,655)
14,578,369

17,760,500
—
(250,413)
(14,939,735)
2,570,352
54,895,477

207,829
49,240,460
37,124,889
109,751
887,459
1,418,588
13,776,546
29,936,668

99,507,443
232,209,633

1. Includes certain non-banking assets acquired in satisfaction of claims which are in the process of being transferred in the Bank’s name.
2. Includes goodwill on consolidation amounting to ` 1,432.3 million (March 31, 2011: ` 1,464.8 million).

SCHEDULE 12 - CONTINGENT LIABILITIES
I. Claims against the Group not acknowledged as debts ................................
II. Liability for partly paid investments ..............................................................
III. Liability on account of outstanding forward exchange contracts1 ...............
IV. Guarantees given on behalf of constituents .................................................
a)
In India .......................................................................................................
b) Outside India ..............................................................................................
V. Acceptances, endorsements and other obligations .....................................
VI. Currency swaps1 .............................................................................................
Interest rate swaps, currency options and interest rate futures1 .................
VII.
VIII. Other items for which the Group is contingently liable 2..............................
TOTAL CONTINGENT LIABILITIES ........................................................................

34,360,751
128,050
3,672,103,795

721,472,153
243,307,639
569,297,814
629,205,403
4,441,277,345
64,438,333
10,375,591,283

21,093,514
128,050
2,550,667,789

647,524,739
182,021,705
393,972,235
567,720,233
5,800,967,594
61,900,784
10,225,996,643

1. Represents notional amount.
2. Includes an amount of ` 8,307.0 million (March 31, 2011: ` 1,653.8 million) pertaining to government securities settled after the balance sheet
date, which are accounted as per settlement date method pursuant to RBI guidelines issued during the year ended March 31, 2011.

F62

schedules

forming part of the Consolidated Profit and Loss Account

(` in ‘000s)

Year ended
31.03.2012

Year ended
31.03.2011

SCHEDULE 13 - INTEREST EARNED
I.

Interest/discount on advances/bills ................................................................

II.

III.

Income on investments ..................................................................................

Interest on balances with Reserve Bank of India and other inter-bank funds ....

IV. Others1,2 ...........................................................................................................

TOTAL INTEREST EARNED ...................................................................................

246,201,222

113,762,938

7,005,946

12,978,481

379,948,587

1. Includes interest on income tax refunds amounting to ` 846.4 million (March 31, 2011: ` 1,694.7 million).
2. Includes interest and amortisation of premium on non-trading interest rate swaps and foreign currency swaps.

SCHEDULE 14 - OTHER INCOME
Commission, exchange and brokerage .........................................................
I.
II.
Profit/(Loss) on sale of investments (net) ......................................................
III. Profit/(Loss) on revaluation of investments (net) ..........................................
IV. Profit/(Loss) on sale of land, buildings and other assets (net)1 ....................
V.
Profit/(Loss) on exchange transactions (net) .................................................
VI. Premium and other operating income from insurance business .................
VII. Miscellaneous income (including lease income)2 .........................................
TOTAL OTHER INCOME ........................................................................................

1. Includes profit/(loss) on sale of assets given on lease.
2. Includes share of profit/(loss) from associates.

SCHEDULE 15 - INTEREST EXPENDED
Interest on deposits ......................................................................................
I.
II.
Interest on Reserve Bank of India/inter-bank borrowings ..........................
III. Others (including interest on borrowings of erstwhile ICICI Limited) ........
TOTAL INTEREST EXPENDED ...............................................................................

SCHEDULE 16 - OPERATING EXPENSES

I. Payments to and provisions for employees ................................................
II. Rent, taxes and lighting ................................................................................
III. Printing and stationery .................................................................................
IV. Advertisement and publicity ........................................................................
V. Depreciation .................................................................................................
VI. Depreciation (including lease equalisation) on leased assets ....................
VII. Directors’ fees, allowances and expenses ..................................................
VIII. Auditors’ fees and expenses ........................................................................
IX. Law charges ..................................................................................................
X. Postages, telegrams, telephones, etc. .........................................................
XI. Repairs and maintenance ............................................................................
XII. Insurance ......................................................................................................
XIII. Direct marketing agency expenses .............................................................
XIV. Claims and benefits paid pertaining to insurance business .......................
XV. Other expenses pertaining to insurance business ......................................
XVI. Other expenditure ........................................................................................
TOTAL OPERATING EXPENSES ...........................................................................

63,154,629
6,510,262
(3,776,816)
(37,180)
14,174,661
204,877,907
1,730,714
286,634,177

152,730,907
19,575,112
77,826,436
250,132,455

51,012,713
9,413,874
1,407,335
4,264,149
6,291,795
422,579
36,126
159,975
842,420
2,881,332
6,705,334
2,131,595
2,573,896
39,449,052
139,805,254
28,123,029
295,520,458

190,975,431

91,806,801

4,693,218

13,338,591

300,814,041

65,977,918
6,215,295
(4,528,802)
299,958
10,121,840
236,030,257
1,016,537
315,133,003

113,151,705
16,826,306
63,447,674
193,425,685

43,925,959
9,723,158
1,491,506
3,874,585
6,607,680
789,135
33,590
160,924
810,340
3,007,539
6,677,282
1,994,829
2,578,556
28,158,043
180,870,784
22,320,635
313,024,545

F63

schedules

forming part of the Consolidated Accounts (Contd.)

SCHEDULE 17
Significant accounting policies

OVERVIEW
ICICI Bank Limited (the Bank) together with its subsidiaries, joint ventures and associates (collectively, the Group) is a diversified
financial services group providing a wide range of banking and financial services including commercial banking, retail banking,
project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking
and treasury products and services.

The Bank was incorporated in Vadodara, India and is a banking company governed by the Banking Regulation Act, 1949.

Principles of consolidation
The consolidated financial statements include the financials of ICICI Bank, its subsidiaries, associates and joint ventures.

Entities, in which the Bank holds, directly or indirectly, more than 50.00% of the voting rights or where it exercises control, are fully
consolidated on a line-by-line basis in accordance with the provisions of AS 21. Entities where the Bank, directly or indirectly, holds
20.00% to 50.00% of the voting rights and/or has the ability to exercise significant influence are accounted for under the equity
method of accounting and the pro-rata share of their profit/(loss) is included in the consolidated profit and loss account. Assets,
liabilities, income and expenditure of jointly controlled entities are consolidated using the proportionate consolidation method.
Under this method, the Bank’s share of each of the assets, liabilities, income and expenses of the jointly controlled entity is reported
in separate line items in the consolidated financial statements. The Bank does not consolidate entities where the significant influence/
control is intended to be temporary. All significant inter-company accounts and transactions are eliminated on consolidation.

Basis of preparation
The accounting and reporting policies of the Group used in the preparation of the consolidated financial statements conform to
Generally Accepted Accounting Principles in India (Indian GAAP), the guidelines issued by the Reserve Bank of India (RBI), Securities
and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA), National Housing Bank (NHB), the
Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) and notified by the Companies (Accounting
Standards) Rules, 2006 (as amended) from time to time, as applicable to relevant companies and practices generally prevalent within
the banking industry in India. In the case of the foreign subsidiaries, Generally Accepted Accounting Principles as applicable to the
foreign subsidiaries are followed.

The Group follows the accrual method of accounting except where otherwise stated, and the historical cost convention. In case the
accounting policies followed by a subsidiary or joint venture are different from those followed by the Bank, the same have been
disclosed separately.

The preparation of consolidated financial statements requires management to make estimates and assumptions that are considered
in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the consolidated financial statements
and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation
of the consolidated financial statements are prudent and reasonable. Future results could differ from these estimates.

The consolidated financial statements include the results of the following entities in addition to the Bank.

Name of the entity4

ICICI Bank UK PLC

ICICI Bank Canada

Country of
incorporation
United Kingdom Subsidiary

Nature of
relationship

Canada

ICICI Bank Eurasia Limited Liability Company Russia

ICICI Securities Limited

ICICI Securities Holdings Inc.

ICICI Securities Inc.

ICICI Securities Primary Dealership Limited

ICICI Venture Funds Management Company
Limited
ICICI Home Finance Company Limited

ICICI Trusteeship Services Limited

ICICI Investment Management Company
Limited
ICICI International Limited

India

USA

India

Subsidiary

Nature of business

Banking

Securities broking and merchant
banking
Holding company

Securities broking

Securities investment, trading
and underwriting
Private equity/venture capital
fund management
Housing finance

Trusteeship services

Asset management

Ownership
interest
100.00%

100.00%

Mauritius

Subsidiary

Asset management

Sr.
no.
1.

10.

11.

12.

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forming part of the Consolidated Accounts (Contd.)

Sr.
no.
13.

14.

Name of the entity4

ICICI Prudential Pension Funds Management
Company Limited6
ICICI Eco-net Internet and Technology Fund

15.

ICICI Equity Fund

16.

ICICI Emerging Sectors Fund

17.

ICICI Strategic Investments Fund

18.

ICICI Kinfra Limited

19.

ICICI Venture Value Fund

20.

I-Ven Biotech Limited

21.

22.

23.

24.

ICICI Prudential Life Insurance Company
Limited1
ICICI Lombard General Insurance Company
Limited1
ICICI Prudential Asset Management
Company Limited1
ICICI Prudential Trust Limited1

India

25. TCW/ICICI Investment Partners Limited2

Mauritius

26. Rainbow Fund3

27.

28.

Financial Inclusion Network & Operations
Limited3
I-Process Services (India) Private Limited3,5

29. NIIT Institute of Finance Banking and

Insurance Training Limited3
ICICI Merchant Services Private Limited3

30.

31. Mewar Aanchalik Gramin Bank3

India

Country of
incorporation
India

Nature of
relationship
Subsidiary

Nature of business

Pension fund management

Ownership
interest
100.00%

Consolidated as
per AS 21
Consolidated as
per AS 21
Consolidated as
per AS 21
Consolidated as
per AS 21
Consolidated as
per AS 21
Consolidated as
per AS 21
Consolidated as
per AS 21
Jointly
controlled entity
Jointly
controlled entity
Jointly
controlled entity
Jointly
controlled entity
Jointly
controlled entity
Associate

Associate

Venture capital fund

92.12%

Unregistered venture capital fund 100.00%

Venture capital fund

99.31%

Unregistered venture capital fund 100.00%

Infrastructure development
consultancy
Unregistered venture capital fund 54.35%

76.00%

Investment in research and
development of biotechnology
Life insurance

General insurance

Asset management company for
ICICI Prudential Mutual Fund
Trustee company for ICICI
Prudential Mutual Fund
Asset management

100.00%

73.86%

73.44%

51.00%

50.80%

50.00%

Unregistered venture capital fund 23.98%

Support services for financial
inclusion
Services related to back end
operations
Education and training in banking
and finance
Merchant servicing

Banking

27.26%

19.00%

18.79%

19.00%

35.00%

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’.
The entity has been consolidated as per the proportionate consolidation method as prescribed by AS 27 on ‘financial reporting of
interests in joint ventures’.
These entities have been accounted as per the equity method as prescribed by AS 23 on ‘accounting for investments in associates in
consolidated financial statements’.
During the quarter ended December 31, 2011, Prize Petroleum Company Limited ceased to be an associate and accordingly has not
been accounted as per the equity method as prescribed by AS 23.
During the quarter ended December 31, 2011, I-Solutions Providers (India) Private Limited has been amalgamated with I-Process
Services (India) Private Limited and therefore ceased to be an associate. Accordingly, it has not been accounted as per the equity
method as prescribed by AS 23.
ICICI Prudential Pension Funds Management Company Limited is a wholly owned subsidiary of ICICI Prudential Life Insurance Company Limited.

The financial statements of Comm Trade Services Limited have not been consolidated under AS 21, since the investment is
temporary in nature.

The financial statements of 3i Infotech Limited (3i Infotech) had not been consolidated under AS 23 till the year ended
March 31, 2011, since the ICICI Group’s holding in 3i Infotech was temporary in nature. During the year, 3i Infotech was referred
to the Corporate Debt Restructuring (CDR) Cell for restructuring of debt under the CDR scheme. Based on the approved CDR
package, the holding of ICICI Group will increase from the current holding of 20.3%. Based on the continued intention of ICICI
Group to reduce its stake below 20.0% in the near future and the restructuring arrangement, which provides for severe long-
term restrictions, the results of 3i Infotech will continue not to be consolidated for the year ended March 31, 2012 as per AS 23.

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forming part of the Consolidated Accounts (Contd.)

SIGNIFICANT ACCOUNTING POLICIES
1.

Transactions involving foreign exchange
The consolidated financial statements of the Group are reported in Indian rupees (`), the national currency of India.
Foreign currency income and expenditure items are translated as follows:
(cid:120)

For domestic operations, at the exchange rates prevailing on the date of the transaction with the resultant gain or
loss accounted for in the profit and loss account.
For integral foreign operations, at weekly average closing rates with the resultant gain or loss accounted for in
the profit and loss account. An integral foreign operation is a subsidiary, associate, joint venture or branch of the
reporting enterprise, the activities of which are based or conducted in a country other than the country of the
reporting enterprise but are an integral part of the reporting enterprise.
For non-integral foreign operations, at the quarterly average closing rates with the resultant gains or losses
accounted for as foreign currency translation reserve.

(cid:120)

Monetary foreign currency assets and liabilities of domestic and integral foreign operations are translated at closing
exchange rates notified by Foreign Exchange Dealers’ Association of India (FEDAI) at the balance sheet date and the
resulting profits/losses are included in the profit and loss account.

Both monetary and non-monetary foreign currency assets and liabilities of non-integral foreign operations are translated
at closing exchange rates notified by FEDAI at the balance sheet date and the resulting profits/losses from exchange
differences are accumulated in the foreign currency translation reserve until the disposal of the net investment in the non-
integral foreign operations.

The premium or discount arising on inception of forward exchange contracts in domestic operations that are entered
to establish the amount of reporting currency required or available at the settlement date of a transaction is amortised
over the life of the contract. All other outstanding forward exchange contracts are revalued based on the exchange rates
notified by FEDAI for specified maturities and at interpolated rates for contracts of interim maturities. The contracts of
longer maturities where exchange rates are not notified by FEDAI, are revalued, based on the forward exchange rates
implied by the swap curves for respective currencies. The resultant gains or losses are recognised in the profit and loss
account.

Contingent liabilities on account of guarantees, endorsements and other obligations denominated in foreign currency
are disclosed at the closing exchange rates notified by FEDAI at the balance sheet date.

Revenue recognition
(cid:120)

Interest income is recognised in the profit and loss account as it accrues except in the case of non-performing
assets (NPAs) where it is recognised upon realisation, as per the income recognition and asset classification norms
of RBI/NHB.
Income from leases is calculated by applying the interest rate implicit in the lease to the net investment outstanding
on the lease over the primary lease period. Finance leases entered into prior to April 1, 2001 have been accounted
for as per the Guidance Note on accounting for leases issued by ICAI. The finance leases entered post April 1, 2001
have been accounted for as per AS 19 on ‘leases’ issued by ICAI.
Income on discounted instruments is recognised over the tenure of the instrument on a constant yield basis.
Dividend income is accounted on an accrual basis when the right to receive the dividend is established.
Loan processing fee is accounted for upfront when it becomes due except in the case of foreign banking subsidiaries,
where it is amortised over the period of the loan.
Project appraisal/structuring fee is accounted for on the completion of the agreed service.
Arranger fee is accounted for as income when a significant portion of the arrangement/syndication is completed.
Commission received on guarantees issued is amortised on a straight-line basis over the period of the guarantee.
All other fees are accounted for as and when they become due.
Net income arising from sell-down/securitisation of loan assets prior to February 1, 2006 has been recognised
upfront as interest income. With effect from February 1, 2006, net income arising from securitisation of loan assets
is amortised over the life of securities issued or to be issued by the special purpose vehicle/special purpose entity
to which assets are sold. Net income arising from sale of loan assets through direct assignment with recourse
obligation is amortised over the life of underlying assets sold and net income from sale of loan assets through direct
assignment, without any recourse obligation, is recognised at the time of sale. Net loss arising on account of the
sell-down/securitisation and direct assignment of loan assets is recognised at the time of sale.
The Bank deals in bullion business on a consignment basis. The difference between price recovered from customers
and cost of bullion is accounted for at the time of sale to the customers. The Bank also deals in bullion on a
borrowing and lending basis and the interest paid/received is accounted on accrual basis.

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(cid:120)

(cid:120)
(cid:120)
(cid:120)

(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)

(cid:120)

schedules

forming part of the Consolidated Accounts (Contd.)

(cid:120)

Income from brokerage activities is recognised as income on the trade date of the transaction. Brokerage income in
relation to public or other issuances of securities is recognised based on mobilisation and terms of agreement with
the client.
Life insurance premium is recognised as income when due. Premium on lapsed policies is recognised as income
when such policies are reinstated. Top-up premiums are considered as single premium. For linked business,
premium is recognised when the associated units are created. Income from linked funds, which includes fund
management charges, policy administration charges, mortality charges etc. are recovered from the linked fund in
accordance with the terms and conditions of the policy and are recognised when due.
In the case of general insurance business, premium is recorded for the policy period at the commencement of risk
and for instalment cases, it is recorded on instalment due dates. Premium earned is recognised as income over
the period of risk or the contract period based on 1/365 method, whichever is appropriate, on a gross basis, net
of service tax. Any subsequent revision to premium is recognised over the remaining period of risk or contract
period. Adjustments to premium income arising on cancellation of policies are recognised in the period in which
the policies are cancelled. Commission on re-insurance ceded is recognised as income in the period of ceding the
risk. Profit commission under re-insurance treaties, wherever applicable, is recognised as income in the period of
final determination of profits and combined with commission on reinsurance ceded.
In the case of general insurance business, insurance premium on ceding of the risk is recognised in the period in
which the risk commences. Any subsequent revision to premium ceded is recognised in the period of such revision.
Adjustment to re-insurance premium arising on cancellation of policies is recognised in the period in which it is
cancelled. In case of life insurance business, cost of reinsurance ceded is accounted for at the time of recognition
of premium income in accordance with the treaty or in-principle arrangement with the reinsurer. Profit commission
on reinsurance ceded is netted off against premium ceded on reinsurance.
In the case of general insurance business, premium deficiency is recognised when the sum of expected claim costs
and related expenses exceed the reserve for unexpired risks and is computed at a business segment level.

ICICI Bank Limited
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Venture Funds Management Company Limited

Stock based compensation
The following entities within the group have granted stock options to their employees:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
The Employees Stock Option Scheme (the Scheme) provides for grant of equity shares of the Bank to wholetime
directors and employees of the Bank and its subsidiaries. The Scheme provides that employees are granted options to
subscribe to equity shares of the Bank that vest in a graded manner. The options may be exercised within a specified
period. ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company have also formulated
similar stock option schemes for their employees for grant of equity shares of their respective companies.

The Group follows the intrinsic value method to account for its stock-based employee compensation plans. Compensation
cost is measured as the excess, if any, of the fair market price of the underlying stock over the exercise price on the grant
date. The fair market price is the latest closing price, immediately prior to the grant date, which is generally the date of
the Board of Directors meeting in which the options are granted, on the stock exchange on which the shares of the Bank
are listed. If the shares are listed on more than one stock exchange, then the stock exchange where there is highest
trading volume on the said date is considered. The banking subsidiaries namely, ICICI Bank UK and ICICI Bank Canada
account for the cost of the options granted to employees by ICICI Bank using the fair value method based on binomial
tree model. In the case of ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company, the
fair value of the shares is determined based on an external valuation report.

The Group’s venture capital subsidiary i.e. ICICI Venture Funds Management Company has settled carried interest trusts
for the benefit of its employees. These trusts have investment in a separate class of units of certain fully consolidated
funds. These carried interest entitlements are treated as employee compensation and are accounted for at the time of
distribution of such carried interest to the trusts.

Income taxes
Income tax expense is the aggregate amount of current tax and deferred tax expense incurred by the Group. The current
tax expense and deferred tax expense is determined in accordance with the provisions of the Income Tax Act, 1961
and as per AS 22 on ‘accounting for taxes on income’ issued by ICAI, respectively. Deferred tax adjustments comprise
changes in the deferred tax assets or liabilities during the year.

Deferred tax assets and liabilities are recognised on a prudent basis for the future tax consequences of timing differences
arising between the carrying value of assets and liabilities and their respective tax basis and carry forward losses.
Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively
enacted at the balance sheet date. The impact of changes in the deferred tax assets and liabilities is recognised in the
profit and loss account.

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forming part of the Consolidated Accounts (Contd.)

Deferred tax assets are recognised and re-assessed at each reporting date, based on the management’s judgement as
to whether their realisation is considered as reasonably certain. However, where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realisation
of such assets.

In the consolidated financial statements, deferred tax assets and liabilities are computed at an individual entity level and
aggregated for consolidated reporting.

Claims and benefits paid
In the case of general insurance business, claims incurred comprise claims paid, estimated liability for outstanding
claims made following a loss occurrence reported and estimated liability for claims incurred but not reported (IBNR) and
claims incurred but not enough reported (IBNER). Further, claims incurred also include specific claim settlement costs
such as survey/legal fees and other directly attributable costs. Claims (net of amounts receivable from re-insurers/co-
insurers) are recognised on the date of intimation based on estimates from surveyors/insured in the respective revenue
account. Estimated liability for outstanding claims at the balance sheet date is recorded net of claims recoverable
from/payable to co-insurers/re-insurers and salvage to the extent there is certainty of realisation. Estimated liability for
outstanding claim is determined by the entity on the basis of ultimate amounts likely to be paid on each claim based on
the past experience. These estimates are progressively revalidated on availability of further information. Claims IBNR
represent that amount of claims that may have been incurred during the accounting period but have not been reported
or claimed. The claims IBNR provision also includes provision, if any, required for claims IBNER. Estimated liability for
claims IBNR/claims IBNER is based on an actuarial estimate duly certified by the appointed actuary of the entity.
In the case of life insurance business, claims other than maturity claims are accounted for on receipt of intimation.
Survival benefit and maturity claims are accounted when due. Withdrawals and surrenders under linked policies are
accounted in the respective schemes when the associated units are cancelled/redeemed. Re-insurance recoveries on
claims are accounted for, in the same period as the related claims.
Liability for life policies in force
In the case of life insurance business, liability for life policies in force and also policies in respect of which premium has
been discontinued but a liability exists, is determined by the appointed actuary as per the gross premium method in
accordance with accepted actuarial practice, requirements of the IRDA and the Actuarial Society of India.

Reserve for unexpired risk
Reserve for unexpired risk is recognised net of re-insurance ceded and represents premium written that is attributable
and to be allocated to succeeding accounting periods for risks to be borne by the entity under contractual obligations
on contract period basis or risk period basis, whichever is appropriate. It is calculated on a daily pro-rata basis subject to
a minimum of 50.00% of the aggregated premium, written on policies during the twelve months preceding the balance
sheet date for fire, marine, cargo and miscellaneous business and 100.00% for marine hull business, on all unexpired
policies at balance sheet date, in accordance with the provisions of the Insurance Act, 1938.

Actuarial method and valuation
In the case of life insurance business, the actuarial liability on both participating and non-participating policies is calculated using
the gross premium method, using assumptions for interest, mortality, expense and inflation, and in the case of participating
policies, future bonuses together with allowance for taxation and allocation of profits to shareholders. These assumptions are
determined as prudent estimates at the date of valuation with allowances for adverse deviations. No allowance is made for
expected lapses.
The greater of liability calculated using discounted cash flows and unearned premium reserves are held for the unexpired
portion of the risk for the general fund liabilities of linked business and attached riders. An unearned premium reserve
is held for one year renewable group term insurance.
The unit liability in respect of linked business has been taken as the value of the units standing to the credit of policyholders,
using the Net Asset Value (NAV) prevailing at the valuation date. The adequacy of charges under unit linked policies to
meet future expenses has been tested and provision made as appropriate. Provision has also been made for the cost
of guarantee under unit linked products that carry a guarantee. The units held in respect of lapsed policies are divided
into a revival reserve, which contributes to liabilities, and a fund for future appropriation, which contributes to regulatory
capital.
The interest rates used for valuing the liabilities are in the range of 4.93% to 6.02% per annum (previous year – 6.16%
to 6.86% per annum).
Mortality rates used are based on the published IALM (94 – 96) Ultimate Mortality Table for assurances and LIC 96-98
table for annuities, adjusted to reflect expected experience while morbidity rates used are based on CIBT 93 table,
adjusted for expected experience, or on risk rates supplied by reinsurers.
Expenses are provided for at current levels, in respect of renewal expenses, with no allowance for future improvements.
Per policy renewal expenses for regular premium policies are assumed to inflate at 5.20% (previous year – 5.90%).

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forming part of the Consolidated Accounts (Contd.)

Acquisition costs for insurance business
Acquisition costs are those costs that vary with and are primarily related to the acquisition of insurance contracts and
are expensed in the period in which they are incurred.

10. Staff retirement benefits

Gratuity
The Group pays gratuity to employees who retire or resign after a minimum prescribed period of continuous service and
in the case of employees at the overseas locations as per the rules in force in the respective countries. ICICI Bank makes
contributions to five separate gratuity funds, for employees inducted from erstwhile ICICI Limited (erstwhile ICICI), employees
inducted from erstwhile Bank of Madura Limited (erstwhile Bank of Madura), employees inducted from erstwhile The Sangli
Bank Limited (erstwhile Sangli Bank), employees inducted from erstwhile The Bank of Rajasthan Limited (erstwhile Bank of
Rajasthan) and employees of ICICI Bank other than those inducted from erstwhile ICICI, erstwhile Bank of Madura, erstwhile
Sangli Bank and erstwhile Bank of Rajasthan.
Separate gratuity funds for employees inducted from erstwhile ICICI, erstwhile Bank of Madura, erstwhile Sangli Bank
and erstwhile Bank of Rajasthan are managed by ICICI Prudential Life Insurance Company Limited.
The gratuity fund for employees of ICICI Bank, other than employees inducted from erstwhile ICICI, erstwhile Bank of
Madura, erstwhile Sangli Bank and erstwhile Bank of Rajasthan is administered by Life Insurance Corporation of India
(LIC) and ICICI Prudential Life Insurance Company Limited.
Actuarial valuation of the gratuity liability for all the above funds is determined by an appointed actuary. Actuarial
valuation of gratuity liability is determined based on certain assumptions regarding rate of interest, salary growth,
mortality and staff attrition as per the projected unit credit method.
Superannuation fund
ICICI Bank contributes 15.0% of the total annual basic salary of certain employees to a superannuation fund for ICICI
Bank employees. The employee gets an option on retirement or resignation to commute one-third of the total credit
balance in his/her account and receive a monthly pension based on the remaining balance. In the event of death of
an employee, his or her beneficiary receives the remaining accumulated balance. ICICI Bank also gives an option to
its employees, allowing them to receive the amount contributed by ICICI Bank in their monthly salary during their
employment.
Upto March 31, 2005, the superannuation fund was administered solely by Life Insurance Corporation of India.
Subsequent to March 31, 2005, both Life Insurance Corporation of India and ICICI Prudential Life Insurance Company
Limited are administering separate funds. Employees have the option to decide on an annual basis, the insurance
company for management of that year’s contribution towards superannuation fund.
ICICI Prudential Life Insurance Company, ICICI Prudential Asset Management Company and ICICI Venture Funds
Management Company have accrued for superannuation liability based on a percentage of basic salary payable to
eligible employees for the period of service.

Pension
The Bank provides for pension, a deferred retirement plan covering certain employees of erstwhile Bank of Madura,
erstwhile Sangli Bank and erstwhile Bank of Rajasthan. The plan provides for pension payment including dearness relief
on a monthly basis to these employees on their retirement based on the respective employee’s years of service with
the Bank and applicable salary. For erstwhile Bank of Madura, erstwhile Sangli Bank and erstwhile Bank of Rajasthan
employees in service, separate pension funds are managed by the trust and the liability is funded as per actuarial
valuation. The Bank purchases annuities from LIC and ICICI Prudential Life Insurance Company Limited as part of master
policies for payment of pension to retired employees of erstwhile Bank of Madura, erstwhile Sangli Bank and erstwhile
Bank of Rajasthan.

Actuarial valuation of the pension liability for all the above funds is determined by an actuary appointed by the Bank.
Actuarial valuation of pension liability is calculated based on certain assumptions regarding rate of interest, salary
growth, mortality and staff attrition as per the projected unit credit method.

Employees covered by the pension plan are not eligible for employer’s contribution under the provident fund plan.

Provident fund
The Group is statutorily required to maintain a provident fund as a part of retirement benefits to its employees. There are
separate provident funds for employees inducted from erstwhile Bank of Madura, erstwhile Sangli Bank, erstwhile Bank
of Rajasthan and for other employees of ICICI Bank. In-house trustees manage these funds. Each employee contributes
a specified portion of the basic salary and the Group contributes an equal amount. The funds are invested according to
the rules prescribed by the Government of India.
Actuarial valuation for the interest rate guarantee on the provident fund balances is determined by an actuary.

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forming part of the Consolidated Accounts (Contd.)

Leave encashment
The Group provides for leave encashment benefit, which is a long-term benefit scheme, based on actuarial valuation
conducted by an independent actuary.

11. Provisions, contingent liabilities and contingent assets

The Group estimates the probability of any loss that might be incurred on outcome of contingencies on the basis
of information available upto the date on which the consolidated financial statements are prepared. A provision is
recognised when an enterprise has a present obligation as a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are
determined based on management estimate required to settle the obligation at the balance sheet date, supplemented
by experience of similar transactions. These are reviewed at each balance sheet date and adjusted to reflect the current
management estimates. In cases where the available information indicates that the loss on the contingency is reasonably
possible but the amount of loss cannot be reasonably estimated, a disclosure to this effect is made in the consolidated
financial statements. In case of remote possibility, neither provision nor disclosure is made in the consolidated financial
statements. The Group does not account for or disclose contingent assets, if any.

12. Cash and cash equivalents

13.

Cash and cash equivalents include cash in hand, balances with RBI, balances with other banks and money at call and short
notice.
Investments
i)

Investments of the Bank are accounted for in accordance with the extant RBI guidelines on investment classification
and valuation as given below.
a) All investments are classified into ‘Held to Maturity’, ‘Available for Sale’ and ‘Held for Trading’. Reclassifications,

if any, in any category are accounted for as per the RBI guidelines.
Under each classification, the investments are further classified as (a) government securities, (b) other approved
securities, (c) shares, (d) bonds and debentures and (e) others.
‘Held to Maturity’ securities are carried at their acquisition cost or at amortised cost, if acquired at a premium
over the face value. Any premium over the face value of fixed rate and floating rate securities acquired is
amortised over the remaining period to maturity on a constant yield basis and straight line basis respectively.
‘Available for Sale’ and ‘Held for Trading’ securities are valued periodically as per RBI guidelines. Any
premium over the face value of fixed rate and floating rate investments in government securities, classified
as ‘Available for Sale’, is amortised over the remaining period to maturity on constant yield basis and straight
line basis respectively. Quoted investments are valued based on the trades/quotes on the recognised stock
exchanges, subsidiary general ledger account transactions, price list of RBI or prices declared by Primary
Dealers Association of India jointly with Fixed Income Money Market and Derivatives Association (FIMMDA),
periodically.
The market/fair value of unquoted government securities which are in the nature of Statutory Liquidity Ratio (SLR)
securities included in the ‘Available for Sale’ and ‘Held for Trading’ categories is as per the rates published by
FIMMDA. The valuation of other unquoted fixed income securities wherever linked to the Yield-to-Maturity (YTM)
rates, is computed with a mark-up (reflecting associated credit risk) over the YTM rates for government securities
published by FIMMDA.
Unquoted equity shares are valued at the break-up value, if the latest balance sheet is available or at ` 1 as per
RBI guidelines.
Securities are valued scrip-wise and depreciation/appreciation is aggregated for each category. Net appreciation
in each category, if any, being unrealised, is ignored, while net depreciation is provided for.

d) Costs including brokerage and commission pertaining to investments, paid at the time of acquisition, are

charged to the profit and loss account.
Profit/loss on sale of investments in the ‘Held to Maturity’ category is recognised in the profit and loss account and
profit is thereafter appropriated (net of applicable taxes and statutory reserve requirements) to Capital Reserve.
Profit/loss on sale of investments in ‘Available for sale’ and ‘Held for Trading’ categories is recognised in the profit
and loss account.

f) Market repurchase and reverse repurchase transactions, are accounted for as borrowing and lending
transactions respectively in accordance with the extant RBI guidelines. The transactions with RBI under
Liquidity Adjustment Facility (LAF) are accounted for as borrowing and lending transactions from the three
months ended March 31, 2012.

g) Broken period interest (the amount of interest from the previous interest payment date till the date of purchase/

sale of instruments) on debt instruments is treated as a revenue item.

h) At the end of each reporting period, security receipts issued by asset reconstruction companies are valued
in accordance with the guidelines applicable to such instruments, prescribed by RBI from time to time.

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forming part of the Consolidated Accounts (Contd.)

Accordingly, in cases where the cash flows from security receipts issued by asset reconstruction companies
are limited to the actual realisation of the financial assets assigned to the instruments in the concerned scheme,
the Bank reckons the NAV, obtained from the asset reconstruction company from time to time, for valuation of
such investments at each reporting period end.
The Bank follows trade date method of accounting for purchase and sale of investments, except for government of
India and state government securities where settlement date method of accounting is followed in accordance with
RBI guidelines.

ii) The Bank’s consolidating venture capital funds carry investments at fair values, with unrealised gains and temporary
losses on investments recognised as components of investors’ equity and accounted for in the unrealised
investment reserve account. The realised gains and losses on investments and units in mutual funds and unrealised
gains or losses on revaluation of units in mutual funds are accounted for in the profit and loss account. Provisions
are made in respect of accrued income considered doubtful. Such provisions as well as any subsequent recoveries
are recorded through the profit and loss account. Subscription to/purchase of investments are accounted at the
cost of acquisition inclusive of brokerage, commission and stamp duty. Bonus shares and right entitlements are
recorded when such benefits are known. Quoted investments are valued on the valuation date at the closing
market price. Quoted investments that are not traded on the valuation date but are traded during the two months
prior to the valuation date are valued at the latest known closing price. An appropriate discount is applied where
the asset management company considers it necessary to reflect restrictions on disposal. Quoted investments
not traded during the two months prior to the valuation date are treated as unquoted. Unquoted investments are
valued at their estimated fair values by applying appropriate valuation methods. Where there is a decline, other
than temporary in the carrying amounts of investments, the resultant reduction in the carrying amount is charged
to the profit and loss account during the period in which such decline is identified.

iii) The Bank’s primary dealership and securities broking subsidiaries classify their investments as short-term and
trading or as long-term investments. The securities held with the intention of holding for short-term and trading
are classified as stock-in-trade and are valued at lower of cost or market value. The securities acquired with the
intention of holding till maturity or for a longer period are classified as long-term investments and are carried at
cost. Appropriate provision is made for other than temporary diminution in the value of investments. Commission
earned in respect of securities acquired upon devolvement is reduced from the cost of acquisition.

iv) The Bank’s housing finance subsidiary classifies its investments as current investments and long-term investments.
Investments that are readily realisable and intended to be held for not more than a year are classified as current
investments, which are carried at the lower of cost and net realisable value. All other investments are classified as
long-term investments, which are carried at cost. However, a provision for diminution in value is made to recognise
any other than temporary decline in the value of such long-term investments. Costs such as brokerage, commission
etc. paid at the time of acquisition of investments are included in the investment cost.

vi)

v) The Bank’s United Kingdom and Canadian banking subsidiaries account for unrealised gain/loss, net of tax, on
investment in ‘Available for Sale’ category directly in their reserves. Further, in the case of the Bank’s United
Kingdom and Canadian banking subsidiaries, unrealised gain/loss on investment in ‘Held for Trading’ category is
accounted directly in the profit and loss account.
In the case of life and general insurance businesses, investments are made in accordance with the Insurance Act,
1938, the IRDA (Investment) Regulations, 2000, and various other circulars/notifications issued by the IRDA in this
context from time to time.
In the case of life insurance business, valuation of investments (other than linked business) is done on the following basis:
a. All debt securities and redeemable preference shares are considered as ‘held to maturity’ and accordingly
stated at historical cost, subject to amortisation of premium or accretion of discount in the profit or loss
account over the period of maturity/holding on a straight line basis.
Listed equity shares are stated at fair value being the last quoted closing price on the National Stock Exchange
(NSE) [in case of securities not listed on NSE, the last quoted closing price on the Bombay Stock Exchange
(BSE) is used].

c. Mutual fund units at the balance sheet date are valued at the latest available net asset values of the respective

fund.

Unrealised gains/losses arising due to changes in the fair value of listed equity shares and mutual fund units are
taken to ’Revenue and other reserves’ in the balance sheet for life insurance business.

In the case of general insurance business, valuation of investments is done on the following basis:
a. All debt securities including government securities and non-convertible preference shares are considered
as ‘held to maturity’ and accordingly stated at amortised cost determined after amortisation of premium or
accretion of discount on a straight line basis over the holding/maturity period.
Listed equities and convertible preference shares at the balance sheet date are stated at fair value, being the
lowest of last quoted closing price on NSE or BSE.

c. Mutual fund investments (other than venture capital fund) are stated at fair value, being the closing net asset

value at balance sheet date.

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forming part of the Consolidated Accounts (Contd.)
forming part of the Consolidated Accounts (Contd.)

Investments other than mentioned above are valued at cost.

d.
Unrealised gains/losses arising due to changes in the fair value of listed equity shares and mutual fund units are
taken to ’Revenue and other reserves’ in the balance sheet for general insurance business.
The general insurance subsidiary assesses at each balance sheet date whether there is any indication that any
investment in equity or units of mutual fund may be impaired. If any such indication exists, the carrying value of
such investment is reduced to its recoverable amount and the impairment loss is recognised in the revenue(s)/
profit and loss account.

The total proportion of investments for which subsidiaries have applied accounting policies different from the Bank as
mentioned above, is approximately 15.18% of the total investments at March 31, 2012.

14. Provisions/write-offs on loans and other credit facilities

a) All credit exposures, including overdues arising from crystallised derivative contracts, are classified as per RBI
guidelines, into performing and NPAs. Advances held at the overseas branches that are identified as impaired
as per host country regulations but which are standard as per the extent RBI guidelines are identified as NPAs
at a borrower level. Further, NPAs are classified into sub-standard, doubtful and loss assets based on the criteria
stipulated by RBI.
In the case of corporate loans, provisions are made for sub-standard and doubtful assets at the rates prescribed
by RBI. Loss assets and the unsecured portion of doubtful assets are provided for/written off as per the extant RBI
guidelines. For advances booked in overseas branches, which are standard as per the extant RBI guidelines but
are classified as NPAs based on host country guidelines, provisions are made as per the host country regulations.
Provisions on homogeneous retail loans, subject to minimum provisioning requirements of RBI, are assessed at a
borrower level on the basis of days past due.
The Bank holds specific provisions against non-performing loans and general provision against performing loans
and floating provisions taken over from erstwhile Bank of Rajasthan upon amalgamation. The assessment of
incremental specific provisions is made after taking into consideration the existing specific provision held. The
specific provisions on retail loans held by the Bank are higher than the minimum regulatory requirements.

b) Provision on assets restructured/rescheduled is made in accordance with the applicable RBI guidelines on

c) Amounts recovered against debts written off in earlier years and provisions no longer considered necessary in the

context of the current status of the borrower are recognised in the profit and loss account.
In addition to the specific provision on NPAs, the Bank/the Bank’s housing finance subsidiary maintains a general
provision on performing loans. The general provision covers the requirements of the RBI/NHB guidelines.
In addition to the provisions required to be held according to the asset classification status, provisions are held for
individual country exposures (other than for home country exposure). The countries are categorised into seven
risk categories namely insignificant, low, moderate, high, very high, restricted and off-credit and provisioning is
made on exposures exceeding 180 days on a graded scale ranging from 0.25% to 100.00%. For exposures with
contractual maturity of less than 180 days, provision is required to be held at 25.00% of the rates applicable to
exposures exceeding 180 days. If the country exposure (net) of the Bank in respect of each country does not exceed
1.00% of the total funded assets, no provision is required on such country exposure.
In the case of the Bank’s housing finance subsidiary, loans and other credit facilities are classified as per the NHB
guidelines into performing and non-performing assets. Further, NPAs are classified into sub-standard, doubtful and
loss assets based on criteria stipulated by NHB. Additional provisions are made against specific non-performing
assets over and above what is stated above, if in the opinion of the management, increased provisions are necessary.
In the case of the Bank’s overseas banking subsidiaries, loans are stated net of allowance for credit losses. Loans
are classified as impaired and impairment losses are incurred only if there is objective evidence of impairment as
a result of one or more events that occurred after the initial recognition on the loan (a loss event) and that loss
event (or events) has an impact on the estimated future cash flows of the loans that can be reliably estimated. An
allowance for impairment losses is maintained at a level that management considers adequate to absorb identified
credit related losses as well as losses that have occurred but have not yet been identified.

The total proportion of loans for which subsidiaries have applied accounting policies different from the Bank as
mentioned above, is approximately 11.56% of the total loans at March 31, 2012.

15. Transfer and servicing of assets

The Bank transfers commercial and consumer loans through securitisation transactions. The transferred loans are
de-recognised and gains/losses are accounted for only if the Bank surrenders the rights to benefits specified in the
underlying securitised loan contract. Recourse and servicing obligations are accounted for net of provisions.
In accordance with the RBI guidelines for securitisation of standard assets, with effect from February 1, 2006, the Bank
accounts for any loss arising from securitisation immediately at the time of sale and the profit/premium arising from

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forming part of the Consolidated Accounts (Contd.)

securitisation is amortised over the life of the securities issued or to be issued by the special purpose vehicle to which
the assets are sold. In the case of loans sold to an asset reconstruction company, the excess provision is not reversed
but is utilised to meet the shortfall/loss on account of sale of other financial assets to securitisation company (SC)/
reconstruction company (RC).
The Canadian subsidiary has entered into securitisation arrangements in respect of its originated mortgages. ICICI
Bank Canada either retains substantially all the risk and rewards or retains control over these mortgages, hence these
arrangements do not qualify for de-recognition accounting under their local accounting standards. It continues to
recognise the mortgages securitised in the book of accounts and the amounts received through securitisation are
recognised as “Other borrowings”.

16. Fixed assets and depreciation

Premises and other fixed assets are carried at cost less accumulated depreciation. Cost includes freight, duties, taxes and
incidental expenses related to the acquisition and installation of the asset. Depreciation is charged over the estimated
useful life of a fixed asset on a straight-line basis. The rates of depreciation for fixed assets, which are not lower than the
rates prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on leased assets and leasehold improvements is recognised on a straight-line basis using rates determined
with reference to the primary period of lease or rates specified in Schedule XIV of the Companies Act, 1956, whichever
is higher.
Assets purchased/sold during the period are depreciated on a pro-rata basis for the actual number of days the asset has been put
to use.
In case of the Bank, items costing up to ` 5,000 are depreciated fully over a period of 12 months from the date of
purchase.
In case of revalued/impaired assets, depreciation is provided over the remaining useful life of the assets with reference
to revised values of the assets.
17. Accounting for derivative contracts

The Group enters into derivative contracts such as foreign currency options, interest rate and currency swaps, credit
default swaps and cross currency interest rate swaps.
The swap contracts entered into to hedge on-balance sheet assets and liabilities are structured such that they bear an opposite
and offsetting impact with the underlying on-balance sheet items. The impact of such derivative instruments is correlated
with the movement of underlying assets and accounted pursuant to the principles of hedge accounting. Hedge swaps are
accounted for on an accrual basis except in the case of the Bank’s United Kingdom and Canadian banking subsidiaries,
where the hedging transactions and the hedged items (for the risks being hedged) are measured at fair value with changes
recognised in the profit and loss account.
Foreign currency and rupee derivative contracts entered into for trading purposes are marked to market and the resulting
gain/loss, (net of provisions, if any) is accounted for in the profit and loss account. Pursuant to RBI guidelines, any
receivables under derivative contracts which remain overdue for more than 90 days and mark-to-market gains on other
derivative contracts with the same counter-parties are reversed through the profit and loss account.
Impairment of assets
Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison
of the carrying amount of an asset with future net discounted cash flows expected to be generated by the asset. If
such assets are considered to be impaired, the impairment is recognised by debiting the profit and loss account and is
measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets.

18.

19. Lease transactions

Lease payments for assets taken on operating lease are recognised as an expense in the profit and loss account over the lease
term.

20. Earnings per share

Basic and diluted earnings per share are computed in accordance with AS 20 on ‘earnings per share’ issued by ICAI.
Basic EPS is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
Diluted earnings per share reflect the potential dilution that could occur if contracts to issue equity shares were exercised
or converted during the year. Diluted earnings per equity share is computed using the weighted average number of
equity shares and dilutive potential equity shares issued by the group outstanding during the year, except where the
results are anti-dilutive.

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forming part of the Consolidated Accounts (Contd.)

SCHEDULE 18
NOTES FORMING PART OF THE ACCOUNTS

The following additional disclosures have been made taking into account the requirements of Accounting Standards
(ASs) and Reserve Bank of India (RBI) guidelines in this regard.

Earnings per share

Basic and diluted earnings per equity share are computed in accordance with AS 20 on ‘earnings per share’. Basic
earnings per share is computed by dividing net profit after tax by the weighted average number of equity shares
outstanding during the year. The diluted earnings per equity share is computed using the weighted average number of
equity shares and dilutive potential equity shares outstanding during the year.

The following table sets forth, for the periods indicated, the computation of earnings per share.

Basic
Weighted average no. of equity shares outstanding .......................................
Net profit .............................................................................................................
Basic earnings per share (`) ..............................................................................
Diluted
Weighted average no. of equity shares outstanding .......................................
Net profit .............................................................................................................
Diluted earnings per share (`) ...........................................................................
Nominal value per share (`) ...............................................................................

The dilutive impact is mainly due to options granted to employees by the Group.

Related party transactions

` in million, except per share data

Year ended
March 31, 2012

Year ended
March 31, 2011

1,152,338,322
76,429.2
66.33

1,155,591,617
76,338.7
66.06
10.00

1,137,988,639
60,932.7
53.54

1,143,267,823
60,876.5
53.25
10.00

The Group has transactions with its related parties comprising associates/other related entities and key management
personnel and their relatives.

Associates/other related entities

Financial Inclusion Network & Operations Limited, I-Process Services (India) Private Limited, I-Solutions Providers (India)
Private Limited (up to September 30, 2011)1, NIIT Institute of Finance Banking and Insurance Training Limited, Comm
Trade Services Limited, Prize Petroleum Company Limited (up to September 30, 2011), ICICI Foundation for Inclusive
Growth, Rainbow Fund, ICICI Merchant Services Private Limited and Mewar Aanchalik Gramin Bank2.

I-Solutions Providers (India) Private Limited has been amalgamated with I-Process Services (India) Private Limited during the three
months ended December 31, 2011.

2. With respect to an entity, which has been identified as a related party during the quarter ended September 30, 2010, transactions

reported from the quarter ended September 30, 2010.

Key management personnel

Ms. Chanda Kochhar, Mr. Sandeep Bakhshi1, Mr. N. S. Kannan, Mr. K. Ramkumar, Mr. Rajiv Sabharwal2, Mr. Sonjoy Chatterjee3.

Relatives of key management personnel

Mr. Deepak Kochhar, Mr. Arjun Kochhar, Ms. Aarti Kochhar, Mr. Mahesh Advani, Ms. Varuna Karna, Ms. Sunita Advani,
Ms. Mona Bakhshi1, Mr. Sameer Bakhshi1, Ms. Rangarajan Kumudalakshmi, Ms. Aditi Kannan, Mr. Narayanan
Raghunathan, Mr. Narayanan Rangarajan, Mr. Narayanan Krishnamachari, Ms. Narayanan Sudha, Mr. R. Shyam,
Ms. R. Suchithra, Mr. K. Jayakumar, Ms. J. Krishnaswamy, Ms. Sangeeta Sabharwal2, Mr. Sanjiv Sabharwal2,
Mr. Somnath Chatterjee3, Mr. Tarak Nath Chatterjee3, Ms. Sunaina Chatterjee3, Ms. Nandini Chatterjee3.

1.
2.

Transactions reported upto July 31, 2010.

Transactions reported with effect from June 24, 2010.

Transactions reported upto April 30, 2010.

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schedules

forming part of the Consolidated Accounts (Contd.)

The following were the significant transactions between the Group and its related parties for the year ended March 31,
2012. A specific related party transaction is disclosed as a material related party transaction wherever it exceeds 10% of
all related party transactions in that category.

Insurance services
During the year ended March 31, 2012, the Group received insurance premium from associates/other related entities
amounting to ` 17.8 million (March 31, 2011: ` 9.5 million), from key management personnel of the Bank amounting to
` 1.1 million (March 31, 2011: ` 0.2 million) and from relatives of key management personnel amounting to ` 0.1 million
(March 31, 2011: ` 0.1 million). The material transactions for the year ended March 31, 2012 was with Financial Inclusion
Network & Operations Limited amounting to ` 15.1 million (March 31, 2011: ` 7.7 million).

During the year ended March 31, 2012, the Group paid insurance claims to its associates/other related entities
amounting to ` 0.4 million (March 31, 2011: ` 0.7 million). The material transactions for the year ended March 31, 2012
were with I-Process Services (India) Private Limited amounting to ` 0.4 million (March 31, 2011: ` 0.1 million) and with
Financial Inclusion Network & Operations Limited amounting to Nil (March 31, 2011: ` 0.6 million).

Fees, commission and other income
During the year ended March 31, 2012, the Group received fees from its associates/other related entities amounting to
` 21.8 million (March 31, 2011: ` 0.9 million) and from key management personnel of the Bank amounting to
` 0.3 million (March 31, 2011: Nil) and from relatives of key management personnel amounting to Nil (March 31,
2011: Nil). The material transactions for the year ended March 31, 2012 were with ICICI Merchant Services Private Limited
amounting to ` 18.7 million (March 31, 2011: Nil), NIIT Institute of Finance Banking and Insurance Training Limited
amounting to ` 1.1 million (March 31, 2011: ` 0.8 million) and with Rainbow Fund amounting to Nil (March 31, 2011:
` 0.1 million).

Lease of premises, common corporate and facilities expenses
During the year ended March 31, 2012, the Group recovered from its associates/other related entities an amount of
` 38.4 million (March 31, 2011: ` 86.6 million) for lease of premises, common corporate and facilities expenses. The
material transaction for the year ended March 31, 2012 was with ICICI Merchant Services Private Limited amounting to
` 38.4 million (March 31, 2011: ` 86.6 million).

Secondment of employees
During the year ended March 31, 2012, the Group recovered towards deputation of employees from its associates/
other related entities an amount of ` 7.0 million (March 31, 2011: ` 32.7 million). The material transactions for the year
ended March 31, 2012 were with I-Process Services (India) Private Limited amounting to ` 7.0 million (March 31, 2011:
` 3.8 million) and with ICICI Merchant Services Private Limited amounting to Nil (March 31, 2011: ` 24.4 million)

Brokerage, fees and other expenses
During the year ended March 31, 2012, the Group paid brokerage/fees and other expenses to its associates/other
related entities amounting to ` 2,551.8 million (March 31, 2011: ` 1,987.2 million). The material transactions for the year
ended March 31, 2012 were with Financial Inclusion Network & Operations Limited amounting to ` 978.3 million (March
31, 2011: ` 922.1 million), ICICI Merchant Services Private Limited amounting to ` 953.9 million (March 31, 2011:
` 664.4 million) and with I-Process Services (India) Private Limited amounting to ` 606.5 million (March 31, 2011:
` 392.9 million).

Purchase of investments
During the year ended March 31, 2012, the Group invested in equity warrants of Financial Inclusion Network &
Operations Limited amounting to ` 40.0 million (March 31, 2011: Nil).

Sale of investments
During the year ended March 31, 2012, the Group sold certain investments to its associates/other related entities
amounting to ` 48.7 million (March 31, 2011: Nil). The material transaction for the year ended March 31, 2012 was with
Mewar Aanchalik Gramin Bank amounting to ` 48.7 million (March 31, 2011: Nil).

Interest expenses
During the year ended March 31, 2012, the Group paid interest to its associates/other related entities amounting to
` 156.6 million (March 31, 2011: ` 79.5 million), to its key management personnel amounting to ` 2.0 million (March
31, 2011: ` 1.5 million) and to relatives of key management personnel amounting to ` 1.1 million (March 31, 2011:
` 0.7 million). The material transactions for the year ended March 31, 2012 were with Mewar Aanchalik Gramin
Bank amounting to ` 128.9 million (March 31, 2011: ` 69.7 million) and with ICICI Merchant Services Private Limited
amounting to ` 17.0 million (March 31, 2011: ` 3.2 million).

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schedules

forming part of the Consolidated Accounts (Contd.)

Interest income
During the year ended March 31, 2012, the Group received interest from its associates/other related entities amounting
to ` 51.6 million (March 31, 2011: ` 7.0 million), from its key management personnel amounting to ` 0.5 million (March
31, 2011: ` 0.4 million) and from relatives of key management personnel amounting to ` 0.7 million (March 31, 2011:
` 0.7 million). The material transactions for the year ended March 31, 2012 were with ICICI Merchant Services Private
Limited amounting to ` 48.0 million (March 31, 2011: Nil) and with Financial Inclusion Network & Operations Limited
amounting to ` 3.5 million (March 31, 2011: ` 7.0 million).

Remuneration to whole-time directors
Remuneration paid to the whole-time directors of the Bank during the year ended March 31, 2012 was ` 111.3 million
(March 31, 2011: ` 79.6 million). The remuneration paid for the year ended March 31, 2012 to Ms. Chanda Kochhar was
` 37.7 million (March 31, 2011: ` 25.2 million), to Mr. K. Ramkumar was ` 25.4 million (March 31, 2011: ` 17.6 million),
to Mr. N. S. Kannan was ` 25.0 million (March 31, 2011: ` 15.8 million) and to Mr. Rajiv Sabharwal was ` 23.2 million
(March 31, 2011: ` 9.0 million). The remuneration paid for the year ended March 31, 2011 to Mr. Sandeep Bakhshi was
` 7.7 million and to Mr. Sonjoy Chatterjee was ` 4.3 million.

Sale of fixed assets
During the year ended March 31, 2012, the Group sold fixed assets to its associates/other related entities amounting to
Nil (March 31, 2011: ` 2.8 million). The material transaction for the year ended March 31, 2012 was with ICICI Merchant
Services Private Limited amounting to Nil (March 31, 2011: ` 2.8 million).

Donation
During the year ended March 31, 2012, the Group has given donation to ICICI Foundation for Inclusive Growth amounting
to ` 259.0 million (March 31, 2011: ` 97.0 million).

Related party balances
The following table sets forth, for the periods indicated, the balance payable to/receivable from its associates/other
related entities.

Items

Deposits with the Group ....................................................................................
Advances ............................................................................................................
Investments of the Group in related parties .....................................................
Investments of related parties in the Group .....................................................
Receivables1 .......................................................................................................
Payables1 .............................................................................................................
Guarantees issued by the Group .......................................................................

1. Excludes mark-to-market on outstanding derivative transactions.

At
March 31, 2012
2,011.1
1,004.8
955.0
15.0
—
264.7
0.1

` in million

At
March 31, 2011
1,561.7
44.3
965.2
15.0
187.9
139.0
0.1

The following table sets forth, for the periods indicated, the balance payable to/receivable from key management
personnel:

` in million, except number of shares

Items

Deposits ..............................................................................................................
Advances ............................................................................................................
Investments ........................................................................................................
Employee Stock Options Outstanding (Numbers) ...........................................
Employee Stock Options Exercised1 .................................................................

At
March 31, 2012
41.0
9.2
4.1
2,701,500
0.9

At
March 31, 2011
35.8
10.6
3.5
2,263,000
—

1. During the year ended March 31, 2012, 86,500 employee stock options were exercised, which have been reported at face value.

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schedules

forming part of the Consolidated Accounts (Contd.)

The following table sets forth, for the periods indicated, the balance payable to/receivable from relatives of key
management personnel:

Items

Deposits ..............................................................................................................

Advances ............................................................................................................

` in million

At
March 31, 2012

At
March 31, 2011

19.8

7.4

13.3

7.7

The following table sets forth, for the periods indicated, the maximum balance payable to/receivable from key
management personnel:

Items

Deposits .............................................................................................................

Advances ..........................................................................................................

Investments .......................................................................................................

` in million

Year ended
March 31, 2012

Year ended
March 31, 2011

64.0

10.7

4.1

45.4

11.1

3.5

The following table sets forth, for the periods indicated, the maximum balance payable to/receivable from relatives of
key management personnel:

Items

` in million

Year ended
March 31, 2012

Year ended
March 31, 2011

Deposits .............................................................................................................

Advances ...........................................................................................................

29.3

9.2

22.3

9.1

Employee Stock Option Scheme (ESOS)

In terms of the ESOS, as amended, the maximum number of options granted to any eligible employee in a financial
year shall not exceed 0.05% of the issued equity shares of the Bank at the time of grant of the options and aggregate
of all such options granted to the eligible employees shall not exceed 5% of the aggregate number of the issued equity
shares of the Bank on the date(s) of the grant of options. Under the stock option scheme, eligible employees are entitled
to apply for equity shares. Options granted for fiscal 2003 and earlier years vest in a graded manner over a three-year
period, with 20%, 30% and 50% of the grants vesting in each year commencing from the end of 12 months from the
date of grant. Options granted from fiscal 2004 vest in a graded manner over a four-year period, with 20%, 20%, 30%
and 30% of the grants vesting in each year commencing from the end of 12 months from the date of grant. Options
granted in April 2009 vest in a graded manner over a five year period with 20%, 20%, 30% and 30% of grant vesting
each year, commencing from the end of 24 months from the date of grant. Options granted in September, 2011 vest in
a graded manner over a five years period with 15%, 20%, 20% and 45% of grant vesting each year, commencing from
the end of 24 months from the date of the grant. The options can be exercised within 10 years from the date of grant
or five years from the date of vesting, whichever is later. As per the scheme, the exercise price of ICICI Bank’s options
is the last closing price on the stock exchange, which recorded highest trading volume preceding the date of grant of
options. Hence, there was no compensation cost based on intrinsic value of options.

In February, 2011, the Bank granted 3,035,000 options to eligible employees and whole-time Directors of ICICI Bank and
certain of its subsidiaries at an exercise price of ` 967. Of these options granted, 50% would vest on April 30, 2014 and
the balance 50% would vest on April 30, 2015. The options can be exercised within 10 years from the date of grant or
five years from the date of vesting, whichever is later. Based on intrinsic value of options, compensation cost of ` 20.9
million was recognised during the year ended March 31, 2012 (March 31, 2011: ` 2.9 million).

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schedules

forming part of the Consolidated Accounts (Contd.)

If ICICI Bank had used the fair value of options based on binomial tree model, compensation cost in the year ended
March 31, 2012 would have been higher by ` 1,816.1 million. The key assumptions used to estimate the fair value of
options granted during the year ended March 31, 2012 are given below.

Risk-free interest rate ..........................................................................................................................
Expected life ........................................................................................................................................
Expected volatility ...............................................................................................................................
Expected dividend yield .....................................................................................................................

7.99-9.07% p.a.
6.35-6.98 years
47.53-49.20% p.a.
1.26-1.60% p.a.

The weighted average fair value of options granted during the year ended March 31, 2012 is ` 592.52 per option
(March 31, 2011: ` 535.87).

A summary of the status of the Bank’s stock option plan is given below.

Particulars

Outstanding at the beginning of the year .......................
Add: Granted during the year .........................................
Less: Lapsed during the year, net of re-issuance ..........
Less: Exercised during the year ......................................
Outstanding at the end of the year .................................
Options exercisable .........................................................

` except number of options

Stock options outstanding

Year ended March 31, 2012
Weighted
Number of
Average
options
Exercise Price
779.72
1,104.82
798.77
510.94
846.94
745.26

20,529,387
4,060,600
448,372
942,070
23,199,545
12,019,655

Year ended March 31, 2011
Weighted
Number of
Average
options
Exercise Price
689.50
972.00
871.95
517.21
779.72
682.72

18,763,460
5,514,600
1,005,536
2,743,137
20,529,387
10,197,137

In terms of the Scheme, 23,199,545 options (March 31, 2011: 20,529,387 options) granted to eligible employees were
outstanding at March 31, 2012.

A summary of stock options outstanding at March 31, 2012 is given below.

Range of exercise price
(` per share)

Number of shares
arising out of
options

Weighted average
exercise price
(` per share)

105-299
300-599
600-999

1,000-1,399

28,925
6,048,620
13,122,000

4,000,000

132.05
471.10
942.79

1,106.03

A summary of stock options outstanding at March 31, 2011 is given below.

Range of exercise price
(` per share)

Number of shares
arising out of
options

Weighted average
exercise price
(` per share)

105-299
300-599
600-999

1,000-1,399

95,086
6,906,951
13,426,350

101,000

137.13
466.85
942.54

1,084.59

Weighted average
remaining
contractual life
(Number of years)
1.07
4.35
6.80

9.04

Weighted average
remaining
contractual life
(Number of years)
1.07
5.30
7.78

7.94

F78

schedules

forming part of the Consolidated Accounts (Contd.)

ICICI Life:

ICICI Prudential Life Insurance Company has formulated various ESOS schemes, namely Founder I, Founder II, 2004-05,
2005-06, 2006-07 and 2007-08.

For ICICI Prudential Life Insurance Company there is no compensation cost for the year ended March 31, 2012 based on the
intrinsic value of options. If the entity had used the fair value of options based on the binomial tree model, compensation
cost for the year ended March 31, 2012 would have been higher by ` 34.3 million (March 31, 2011: ` 90.9 million).

The following table sets forth, for the periods indicated, a summary of the status of the stock option plan of ICICI
Prudential Life Insurance Company.

Particulars

`, except number of options

Stock options outstanding

Year ended March 31, 2012
Weighted
Number of
Average
shares
Exercise Price

Year ended March 31, 2011
Weighted
Number of
Average
shares
Exercise Price

Outstanding at the beginning of the year .......................

13,565,154

210.87

14,827,086

210.73

Add: Granted during the year .........................................

Less: Forfeited/lapsed during the year ...........................

Less: Exercised during the year ......................................

—

414,481

387,975

—

302.84

94.00

—

943,666

318,266

Outstanding at the end of the year .................................

12,762,698

211.43

13,565,154

Options exercisable .........................................................

11,240,148

185.89

8,768,885

—

257.84

65.18

210.87

161.34

The following table sets forth, summary of stock options outstanding of ICICI Prudential Life Insurance Company at
March 31, 2012.

Range of exercise price
(` per share)

Number of shares
arising out of
options
(Number of shares)

Weighted average
exercise price
(` per share)

Weighted average
remaining
contractual life
(Number of years)

30-400

12,762,698

211.43

5.10

ICICI General:

ICICI Lombard General Insurance Company has formulated various ESOS schemes to their employees. There is no
compensation cost for the year ended March 31, 2012 based on the intrinsic value of options. If the entity had used the
fair value of options based on the binomial tree model, compensation cost for the year ended March 31, 2012 would
have been higher by ` 167.2 million (March 31, 2011: ` 67.5 million).

The following table sets forth, the key assumptions used to estimate the fair value of options granted during the year
ended March 31, 2012.

Risk-free interest rate ............................................................................................................................

7.96-8.41% p.a.

Expected life ...........................................................................................................................................

3-7 years

Expected volatility ..................................................................................................................................

17.00-84.89% p.a.

Expected dividend yield ........................................................................................................................

0.80-2.85% p.a.

F79

schedules

forming part of the Consolidated Accounts (Contd.)

The following table sets forth, for the periods indicated, a summary of the status of the stock option plan of ICICI
Lombard General Insurance Company.

Particulars

`, except number of options

Stock options outstanding

Year ended March 31, 2012
Weighted
average
exercise price

Number
of shares

Year ended March 31, 2011
Weighted
average
exercise price

Number
of shares

Outstanding at the beginning of the year ......................
Add: Granted during the year ..........................................
Less: Forfeited/lapsed during the year ............................
Less: Exercised during the year ......................................
Outstanding at the end of the year ..................................
Options exercisable ..........................................................

13,644,522
722,900
1,100,770
817,390
12,449,262
8,713,800

98.72
109.00
134.13
47.23
99.33
87.23

13,345,912
2,311,800
1,132,190
881,000
13,644,522
7,576,580

94.55
114.00
126.62
43.17
98.72
75.09

The following table sets forth, summary of stock options outstanding of ICICI Lombard General Insurance Company at
March 31, 2012.

Range of exercise price
(` per share)

Number of shares
arising out of options
(Number of shares)

Weighted average
exercise price (` per
share)

35-200

12,449,262

99.33

Weighted average
remaining
contractual life
(Number of years)
6.78

If the Group had used the fair value of options based on the binomial tree model, the compensation cost for the year
ended March 31, 2012 would have been higher by ` 1,891.9 million (March 31, 2011: ` 1,022.6 million) and the proforma
consolidated profit after tax would have been ` 74.54 billion (March 31, 2011: ` 59.91 billion). On a proforma basis, the
Group’s basic earnings per share would have been ` 64.68 (March 31, 2011: ` 52.65) and diluted earnings per share
would have been ` 64.42 (March 31, 2011: ` 52.35).

Fixed assets

The following table sets forth, for the periods indicated, the movement in software acquired by the Group, as included
in fixed assets.

Particulars

At cost at March 31 of preceding year .................................................................

Additions during the year .....................................................................................

Deductions during the year ..................................................................................

Depreciation to date ..............................................................................................

Net block ...............................................................................................................

At
March 31, 2012
8,994.9

` in million
At
March 31, 2011
8,014.6

1,206.3

(34.7)

(7,709.6)

2,456.9

1,185.5

(205.2)

(6,245.3)

2,749.6

Assets on lease

5.1 Assets taken under operating lease

The following table sets forth, for the periods indicated, the details of future rentals payable on operating leases.

Particulars

Not later than one year .........................................................................................
Later than one year and not later than five years ................................................
Later than five years ..............................................................................................
Total .......................................................................................................................

At
March 31, 2012
916.9
2,359.0
487.5
3,763.4

` in million
At
March 31, 2011
1,437.1
3,733.4
1,265.2
6,435.7

F80

schedules

forming part of the Consolidated Accounts (Contd.)

5.2 Assets under finance lease

The following table sets forth, for the periods indicated, the details of finance leases.

Particulars

Future minimum lease receipts ...........................................................................

Present value of lease receipts ............................................................................

Unmatured finance charges .................................................................................

Total .......................................................................................................................

Maturity profile of future minimum lease receipts ............................................

- Not later than one year .......................................................................................

- Later than one year and not later than five years ..............................................

- Later than five years ............................................................................................

Total .......................................................................................................................

` in million

At
March 31, 2012

At
March 31, 2011

—

6.8

0.6

7.4

2.7

4.7

—

7.4

5.3 Maturity profile of present value of lease rentals

The following table sets forth, for the periods indicated, the details of maturity profile of present value of finance lease
receipts.

Particulars

Not later than one year ........................................................................................

Later than one year and not later than five years ...............................................

Later than five years .............................................................................................

Total .......................................................................................................................

` in million

At
March 31, 2012

At
March 31, 2011

—

2.4

4.4

—

6.8

Preference shares
Certain government securities amounting to ` 2,578.1 million at March 31, 2012 (March 31, 2011: ` 2,563.8 million) have
been earmarked against redemption of preference shares issued by the Bank, which fall due for redemption on April 20,
2018, as per the original issue terms.

Provisions and contingencies

The following table sets forth, for the periods indicated, the break-up of provisions and contingencies included in profit
and loss account.

Particulars

` in million

Year ended
March 31, 2012

Year ended
March 31, 2011

Provision for depreciation of investments ...........................................................

Provision towards non-performing and other assets ..........................................

Provision towards income tax ..............................................................................

Deferred tax adjustment .......................................................................................

Provision towards wealth tax ................................................................................

Other provision and contingencies ......................................................................

Total provisions and contingencies ....................................................................

1,173.7

10,789.1

25,711.4

1,717.2

61.5

2,100.6

41,553.5

3,162.7

20,555.3

25,126.5

(4,441.6)

30.2

1,881.8

46,314.9

F81

schedules

forming part of the Consolidated Accounts (Contd.)

Staff retirement benefits

Pension
The following tables set forth, for the periods indicated, reconciliation of opening and closing balance of the present
value of the defined benefit obligation for pension benefits.

Pension

Particulars

Year ended
March 31, 2012
Opening obligations .............................................................................................
8,842.9
251.6
Service cost ...........................................................................................................
707.8
Interest cost ...........................................................................................................
2,329.8
Actuarial (gain)/loss ...............................................................................................
(2,268.7)
Liabilities extinguished on settlement ..................................................................
Addition due to amalgamation ............................................................................. —
(260.7)
Benefits paid ..........................................................................................................
9,602.7
Obligations at the end of the year ......................................................................
8,467.4

Opening plan assets, at fair value .......................................................................
652.9
Expected return on plan assets ............................................................................
51.7
Actuarial gain/(loss) ...............................................................................................
(2,413.5)
Assets distributed on settlement ..........................................................................
2,881.7
Contributions .........................................................................................................
Addition due to amalgamation ............................................................................. —
(260.7)
Benefits paid ..........................................................................................................
9,379.5
Closing plan assets, at fair value .........................................................................
9,379.5

Fair value of plan assets at the end of the year ...................................................
Present value of the defined benefit obligations at the end of the year .............
Amount not recognised as an asset
(limit in para 59(b) of AS 15 on ‘employee benefits’) ..........................................
Asset/(liability)......................................................................................................

Cost for the year
Service cost ...........................................................................................................
Interest cost ...........................................................................................................
Expected return on plan assets ............................................................................
Actuarial (gain)/loss ...............................................................................................
Curtailments & settlements (gain)/loss ................................................................
Effect of the limit in para 59(b) of AS 15 on ‘employee benefits’ ........................
Net cost .................................................................................................................
Actual Return on Plan Assets................................................................................
Expected employer’s contribution next year .......................................................

Investment details of plan assets
Majority of the plan assets are invested in Insurer Managed Funds, corporate
bonds and Government of India securities.

Assumptions
Interest rate ...........................................................................................................
Salary escalation rate
On Basic Pay ..........................................................................................................
On Dearness Relief ...............................................................................................
Estimated rate of return on plan assets ...............................................................

9,602.7

—
(223.2)

251.6
707.8
(652.9)
2,278.2
144.8
—
2,729.5
704.6
150.0

8.35%

1.50%
7.00%
8.00%

` in million

Year ended
March 31, 2011
1,748.7
170.8
457.8
607.0
(460.0)
6,479.0
(160.4)
8,842.9
1,839.9

156.5
69.1
(511.1)
6,094.6
978.8
(160.4)
8,467.4
8,467.4

8,842.9

—
(375.5)

170.8
457.8
(156.5)
537.9
51.1
(7.7)
1,053.4
225.7
100.0

8.10%

1.50%
7.00%
8.00%

Estimated rate of return on plan assets is based on our expectation of the average long-term rate of return expected on
investments of the Fund during the estimated term of the obligations.

F82

schedules

forming part of the Consolidated Accounts (Contd.)

Experience adjustment

Particulars

Year ended
March 31,
2012

Year ended
March 31,
2011

Year ended
March 31,
2010

Year ended
March 31,
2009

` in million
Year ended
March 31,
2008

Plan assets .........................................................................

9,379.5

Defined benefit obligations ...............................................

9,602.7

8,467.4

8,842.9

1,839.9

1,748.7

2,145.3

1,932.2

1,490.1

1,678.1

Amount not recognised as an asset
(limit in para 59(b) of AS 15 on ‘employee benefits’) ......

—

Surplus/(deficit) .................................................................

(223.2)

(375.5)

Experience adjustment on plan assets .............................

51.7

Experience adjustment on plan liabilities .........................

2,692.3

69.1

689.7

7.7

83.5

(130.7)

196.9

51.2

161.9

144.8

6.6

—

(188.0)

(117.9)

(121.9)

Gratuity

The following tables set forth, for the periods indicated, reconciliation of opening and closing balance of the present
value of the defined benefit obligation for gratuity benefits of the Group.

Particulars

Defined benefit obligation liability

Opening obligations ............................................................................................

Add: Adjustment for exchange fluctuation on opening obligation ....................

Adjusted opening obligations ..............................................................................

Service cost ..........................................................................................................

Interest cost ...........................................................................................................

Actuarial (gain)/loss ..............................................................................................

Past service cost ...................................................................................................

Transitional obligation/(asset) ..............................................................................

Addition due to amalgamation ............................................................................

Liability assumed on acquisition/(settled on divestiture) ...................................

Benefits paid .........................................................................................................

Obligations at the end of year ............................................................................

Opening plan assets, at fair value ......................................................................

Expected return on plan assets ............................................................................

Actuarial gain/(loss) ..............................................................................................

Addition due to amalgamation .............................................................................

Contributions .........................................................................................................

Asset acquired on acquisition/(distributed on divestiture) ..................................

Benefits paid ..........................................................................................................

Closing plan assets, at fair value .........................................................................

Fair value of plan assets at the end of the year ...................................................

Present value of the defined benefit obligations at the end of the year .............

Unrecognised past service cost............................................................................

Amount not recognised as an asset
(limit in para 59(b) of AS on ‘employee benefits) ................................................

Asset/(liability)......................................................................................................

` in million

Gratuity

Year ended
March 31, 2012

Year ended
March 31, 2011

5,943.4

5.9

5,949.3

549.3

497.4

(83.9)

—

23.5

(677.7)

6,257.9

5,855.8

438.7

23.1

—

63.5

20.9

(677.7)

5,724.3

6,257.9

10.8

1.2

(524.0)

3,089.6

0.2

3,089.8

460.1

391.9

(375.7)

10.2

—

2,773.1

3.7

(409.7)

5,943.4

3,073.1

278.9

(90.5)

803.0

2,190.5

10.5

(409.7)

5,855.8

5,943.4

25.5

4.9

(67.1)

F83

schedules

forming part of the Consolidated Accounts (Contd.)

Particulars

Cost for the year

` in million

Gratuity

Year ended
March 31, 2012

Year ended
March 31, 2011

Service cost ...........................................................................................................

Interest cost ...........................................................................................................

Expected return on plan assets ............................................................................

Actuarial (gain)/loss ...............................................................................................

549.3

497.4

(438.7)

(107.0)

Past service cost ...................................................................................................

14.7

Losses/(gains) on “Acquisition/Divestiture” .........................................................

Exchange fluctuation loss/(gain) ...........................................................................

Transitional obligation/(Asset) ..............................................................................

Effect of the limit in para 59(b) of AS 15 on ‘employee benefits’ ........................

Net cost .................................................................................................................

Investment details of plan assets

Majority of the plan assets are invested in Insurer Managed Funds, corporate
bonds and Government of India securities.

Assumptions

0.2

5.9

(0.3)

(3.6)

517.9

460.1

391.9

(278.9)

(285.2)

25.2

(7.7)

0.2

(43.0)

262.7

Interest rate ............................................................................................................

8.25%- 9.10%

7.59%- 8.30%

Salary escalation rate ............................................................................................

7.50%-8.00%

7.00%-10.00%

Estimated rate of return on plan assets ...............................................................

5.00%-10.0%

7.50%-8.00%

Estimated rate of return on plan assets is based on our expectation of the average long-term rate of return expected on
investments of the Fund during the estimated term of the obligations.

Experience adjustment

Particulars

Year ended
March 31,
2012

Year ended
March 31,
2011

Year ended
March 31,
2010

Year ended
March 31,
2009

Year ended
March 31,
2008

` in million

Plan assets ..............................................................

Defined benefit obligations ....................................

5,724.3

6,257.9

5,855.8

5,943.4

3,073.2

3,089.6

Amount not recognised as an asset (limit in para
59(b) of AS 15 on ‘employee benefits’) .....................

—

Surplus/(deficit) ......................................................

(533.6)

Experience adjustment on plan assets ..................

Experience adjustment on plan liabilities ..............

23.1

119.4

—

(87.7)

(90.5)

(72.8)

47.9

(64.3)

194.8

(21.2)

2,521.7

2,813.8

7.9

(300.0)

(149.3)

(22.3)

1,712.6

2,287.2

—

(574.6)

(4.0)

(29.2)

The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.

Provident Fund (PF)
The Group has provided for an amount of ` 17.8 million for the year ended March 31, 2012 towards interest rate
guarantee on exempt Provident Fund on the basis of actuarial valuation.

F84

schedules

forming part of the Consolidated Accounts (Contd.)

Assumptions

Particulars

Year ended
March 31, 2012

Discount rate for the term of the obligation ..........................................................................................

8.25%-8.30%

Average historic yield on the investment portfolio ..............................................................................

8.34%-8.97%

Discount rate for the remaining term to maturity of the investment portfolio ....................................

8.55%

Expected investment return ...................................................................................................................

8.09%-8.67%

Guaranteed rate of return ......................................................................................................................

8.25%

The Group has contributed ` 1,558.2 million to provident fund for the year ended March 31, 2012 (March 31, 2011:
` 1,635.6 million), which includes compulsory contribution made towards employee pension scheme under Employees
Provident Fund and Miscellaneous Provisions Act, 1952.

Provision for income tax
The provision for income tax (including deferred tax) for the year ended March 31, 2012 amounted to ` 27,428.6 million
(March 31, 2011: ` 20,684.9 million).

The Group has a comprehensive system of maintenance of information and documents required by transfer pricing
legislation under sections 92-92F of the Income Tax Act, 1961. The management is of the opinion that all international
transactions are at arm’s length so that the above legislation will not have material impact on the financial statements.

10. Deferred tax

At March 31, 2012 the Group has recorded net deferred tax asset of ` 28,033.7 million (March 31, 2011: ` 29,936.7
million), which has been included in other assets.

The following table sets forth, for the periods indicated, the break-up of deferred tax assets and liabilities into major
items.

Particulars

Deferred tax asset

` in million

At
March 31, 2012

At
March 31, 2011

Provision for bad and doubtful debts .................................................................

28,072.1

29,506.7

Capital loss ...........................................................................................................

79.5

Others ..................................................................................................................

3,853.9

Total deferred tax asset ......................................................................................

32,005.5

Deferred tax liability

Depreciation on fixed assets ...............................................................................

4,331.8

Others ..................................................................................................................

47.8

Total deferred tax liability ..................................................................................

4,379.6

Add: Net deferred tax asset/(liability) pertaining to foreign branches/
foreign subsidiaries ............................................................................................

407.8

Total net deferred tax asset/(liability) ...............................................................

28,033.7

—

4,972.1

34,478.8

4,496.2

63.6

4,559.8

17.7

29,936.7

At March 31, 2012, ICICI Prudential Life Insurance Company has created deferred tax asset on carry forward unabsorbed
losses amounting to ` 860.3 million (March 31, 2011: ` 1,330.8 million) which can be set off against future taxable
income. ICICI Lombard General Insurance Company has created deferred tax asset on carry forward unabsorbed losses
amounting to Nil (March 31, 2011: ` 305.8 million).

F85

schedules

forming part of the Consolidated Accounts (Contd.)

11.

Information about business and geographical segments

A. Business segments for the year ended March 31, 2012

The primary segment for the Group has been presented as follows:

Retail banking includes exposures of the Bank which satisfy the four criteria of orientation, product, granularity and low
value of individual exposures for retail exposures laid down in the Basel Committee on Banking Supervision document
‘International Convergence of Capital Measurement and Capital Standards’, as per the RBI guidelines for the Bank.

2. Wholesale banking includes all advances to trusts, partnership firms, companies and statutory bodies, by the Bank

which are not included under Retail Banking segment, as per the RBI guidelines for the Bank.

Treasury includes the entire investment portfolio of the Bank, ICICI Eco-net Internet and Technology Fund, ICICI Equity
Fund, ICICI Emerging Sectors Fund, ICICI Strategic Investments Fund and ICICI Venture Value Fund.

4. Other banking business includes hire purchase and leasing operations and other items not attributable to any particular
business segment of the Bank. Further, it includes the Bank’s banking subsidiaries i.e. ICICI Bank UK PLC, ICICI Bank
Canada and ICICI Bank Eurasia LLC.

Life insurance represents results of ICICI Prudential Life Insurance Company Limited.

6. General insurance represents results of ICICI Lombard General Insurance Company Limited.

7. Venture fund management represents results of ICICI Venture Funds Management Company Limited.

8. Others includes ICICI Home Finance Company Limited, ICICI International Limited, ICICI Securities Primary Dealership
Limited, ICICI Securities Limited, ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Prudential Asset Management
Company Limited, ICICI Prudential Trust Limited, ICICI Investment Management Company Limited, ICICI Trusteeship
Services Limited, TCW/ICICI Investment Partners Limited, ICICI Kinfra Limited, ICICI West Bengal Infrastructure
Development Corporation Limited (upto December 31, 2010), I-Ven Biotech Limited and ICICI Prudential Pension Funds
Management Company Limited.

Income, expenses, assets and liabilities are either specifically identified with individual segments or are allocated to
segments on a systematic basis.

The results of reported segments for the year ended March 31, 2012 are not comparable with that of reported segments
for the year ended March 31, 2011 to the extent entities have been discontinued from consolidation.

F86

schedules

forming part of the Consolidated Accounts (Contd.)

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B. Geographical segments

(cid:3)

The Group has reported its operations under the following geographical segments.

(cid:135)(cid:3) Domestic operations comprise branches and subsidiaries/joint ventures in India.

(cid:135)(cid:3) Foreign operations comprise branches and subsidiaries/joint ventures outside India and offshore banking unit in India.

The Group conducts transactions with its customers on a global basis in accordance with their business requirements,
which may span across various geographies.

The following tables set forth, for the periods indicated, the geographical segment results.

Revenue

` in million

Year ended
March 31, 2012

Year ended
March 31, 2011

Domestic operations ...........................................................................................

600,630.9

553,305.3

Foreign operations ...............................................................................................

65,951.9

62,641.7

Total ......................................................................................................................

666,582.8

615,947.0

Assets

` in million

At
March 31, 2012

At
March 31, 2011

Domestic operations ............................................................................................

4,698,080.0

4,128,281.6

Foreign operations ...............................................................................................

1,277,623.4

1,142,335.5

Total ......................................................................................................................

5,975,703.4

5,270,617.1

Note: Segment assets do not include tax paid in advance/tax deducted at source (net) and deferred tax asset (net).

Capital expenditure incurred
during the year ended

Depreciation provided on
capital expenditure during
the year ended

March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011

` in million

Domestic operations ...........................................

5,703.3

25,008.7

6,543.1

7,188.6

Foreign operations ...............................................

394.5

94.6

171.3

208.2

Total ....................................................................

6,097.8

25,103.3

6,714.4

7,396.8

12. Penalties/fines imposed by RBI and other banking regulatory bodies

F89

schedules

forming part of the Consolidated Accounts (Contd.)

13. Small and Micro Industries

Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October 2, 2006,
certain disclosures are required to be made relating to enterprises covered under the Act. During the year ended March 31,
2012, the amount paid after the due date to vendors registered under the MSMED Act, 2006 was ` 7.1 million (March 31,
2011: ` 17.9 million). An amount of ` 0.1 million (March 31, 2011: ` 0.7 million) has been charged to profit & loss account
towards accrual of interest on these delayed payments.

14. Reconciliation of nostro account

In terms of RBI circular no. DBOD.BP.BC.No. 133/21.04.018/2008-09 dated May 11, 2009, ` 3.2 million (March 31, 2011:
` 2.6 million) representing outstanding credit balances of individual value less than US$ 2,500 or equivalent lying in nostro
account, which were originated up to March 31, 2002, was transferred to profit and loss account during the year ended
March 31, 2012 and has been subsequently appropriated to General Reserve.

15. Repurchase transactions

The Bank has started accounting for LAF transactions as borrowing and lending during the year ended March 31, 2012. If
the Bank had continued to account for LAF transactions as “sale and repurchase” at March 31, 2012, the investments would
have been lower by ` 168,000.0 million and the borrowings would have been lower by ` 168,000.0 million.

16. Contribution to Motor Third Party Insurance Pool by ICICI Lombard General Insurance Company Limited (ICICI

General)

In accordance with IRDA guidelines, ICICI General, together with all other general insurance companies participated in the
Indian Motor Third Party Insurance Pool (‘the Pool’), administered by the General Insurance Corporation of India (‘GIC’)
from April 1, 2007. The Pool covers reinsurance of third party risks of commercial vehicles.

ICICI General ceded 100.0% of the third party premium collected to the Pool and recorded its share of results in the
Pool based of unaudited statement received from the Pool for the period from March 2011 up to February 2012 and on
management’s estimate for March 2012. In accordance with regulations, the Pool had followed a policy of providing for
Unexpired Risk Reserve at a minimum of 50.0% of the Pooled business. Accordingly company has carried forward 50.0%
of current year premiums from the Pool as Unexpired Risk Reserve.

IRDA through its orders dated December 23, 2011, January 3, 2012 and March 22, 2012 has directed the dismantling of the
Pool on a clean cut basis and advised recognition of the Pool liabilities as per the loss ratios estimated by GAD UK (‘GAD
Estimates’) for underwriting years commencing from the year ended March 31, 2008 to year ended March 31, 2012, with
the option to recognise the same over a three year period. ICICI General has decided to recognise the additional liabilities
of the Pool in the current year and accordingly, the Bank’s consolidated net profit after tax for the year ended March 31,
2012 includes impact of additional Pool losses of ` 5,030.3 million in line with the Bank’s shareholding in ICICI General.

During the year ended March 31, 2011, IRDA had carried out independent assessment of the provision required and
through its order dated March 12, 2011 directed all general insurance companies to make a provision of not less than
153.00% for each of the four years from the inception of the Pool (i.e. from 2007-08). Due to this, an additional provision of
` 2,720.0 million had been created by ICICI General in the year ended March 31, 2011. Accordingly, the Bank’s consolidated
net profit after tax for the year ended March 31, 2011 included impact of additional losses on account of the Pool of
` 2,000.6 million.

17. Transition from Canadian GAAP to IFRS by ICICI Bank Canada

Pursuant to the decision of Canadian Accounting Standards Board, ICICI Bank Canada has adopted International Financial
Reporting Standards (IFRS) for preparation of its financial statements for periods beginning on or after January 1, 2011.
Accordingly, its financial statements included in the consolidated financial statements were prepared in accordance with
Canadian Generally Accepted Accounting Principles for previous periods and have been prepared as per IFRS with effect
from April 1, 2011. The impact of ` 717.8 million on first time adoption of IFRS has been adjusted and shown in Schedule
2- Reserves and Surplus under balance in profit and loss account-others in the financials for the year ended March 31, 2012.

F90

schedules

forming part of the Consolidated Accounts (Contd.)

18. Additional disclosure

Additional statutory information disclosed in the separate financial statements of the Bank and subsidiaries having no
material bearing on the true and fair view of the consolidated financial statements and the information pertaining to the
items which are not material have not been disclosed in the consolidated financial statements.

19. Comparative figures

Figures of the previous year have been re-grouped to conform to the current year presentation.

SIGNATURES TO SCHEDULES 1 TO 18

For S.R. BATLIBOI & CO.

Firm’s Registration no.: 301003E
Chartered Accountants

SHRAWAN JALAN
Partner
Membership no.: 102102

For and on behalf of the Board of Directors

K. V. KAMATH
Chairman

SRIDAR IYENGAR
Director

CHANDA KOCHHAR
Managing Director & CEO

N. S. KANNAN
Executive Director & CFO

K. RAMKUMAR
Executive Director

RAJIV SABHARWAL
Executive Director

Place : Mumbai
Date : April 27, 2012

SANDEEP BATRA
Group Compliance Officer &
Company Secretary

RAKESH JHA
Deputy Chief
Financial Officer

F91

schedules

Financial information of subsidiary companies for the year ended March 31, 2012

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BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)

at March 31, 2012

ICICI Bank is subject to the Basel II framework with effect from March 31, 2008 as stipulated by the Reserve Bank of India (RBI).
The Basel II framework consists of three-mutually reinforcing pillars:

(i) Pillar 1: Minimum capital requirements for credit risk, market risk and operational risk

(ii) Pillar 2: Supervisory review of capital adequacy

(iii) Pillar 3: Market discipline

Market discipline (Pillar 3) comprises set of disclosures on the capital adequacy and risk management framework of the Bank.
These disclosures have been set out in the following sections.

1. SCOPE OF APPLICATION

Pillar 3 disclosures apply to ICICI Bank Limited and its consolidated entities, wherein ICICI Bank Limited is the controlling
entity in the group.

Basis of consolidation for capital adequacy

Consolidation for capital adequacy is based on consolidated financial statements of ICICI Bank and its subsidiaries in line
with the guidelines for consolidated accounting and other quantitative methods issued by RBI.

The entities considered for consolidation for capital adequacy include subsidiaries, associates and joint ventures of the
Bank, which carry on activities of banking or financial nature as stated in the scope for preparing consolidated prudential
reports as prescribed by RBI. Entities engaged in insurance business and businesses not pertaining to financial services
are excluded from consolidation for capital adequacy. Investment above 30% in paid-up equity capital of financial entities
which are not consolidated for capital adequacy (including insurance entities) and investments in other instruments
eligible for regulatory capital status in those entities are deducted to the extent of 50% from Tier-1 and 50% from Tier-2
capital.

The following table lists ICICI Bank’s financial and non-financial subsidiaries, associates, joint ventures and other entities
consolidated for preparation of consolidated financial statements and their treatment in consolidated capital adequacy
computations.

Name of the entity

Sr.
No.

Nature of business & consolidation status

ICICI Bank UK PLC

ICICI Bank Canada

Banking – fully consolidated

ICICI Bank Eurasia Limited Liability Company

Banking – fully consolidated

ICICI Securities Limited

ICICI Securities Inc.

ICICI Securities Holdings Inc.

ICICI Securities Primary Dealership Limited

ICICI Venture Funds Management Company Limited

Securities broking and merchant banking – fully
consolidated

Securities broking – fully consolidated

Holding company of ICICI Securities Inc. – fully
consolidated

Securities investment, trading and underwriting – fully
consolidated

Private equity/venture capital fund management – fully
consolidated

ICICI Home Finance Company Limited

Housing finance – fully consolidated

ICICI Trusteeship Services Limited

Trusteeship services – fully consolidated

ICICI Investment Management Company Limited

Asset management – fully consolidated

ICICI International Limited

Asset management – fully consolidated

ICICI Prudential Pension Funds Management Company
Limited

Pension fund management – fully consolidated

ICICI Eco-net Internet and Technology Fund1

Venture capital fund – fully consolidated

ICICI Equity Fund1

Unregistered venture capital fund – fully consolidated

F93

BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)

at March 31, 2012

Name of the entity

Nature of business & consolidation status

Sr.
No.

ICICI Emerging Sectors Fund1

ICICI Strategic Investments Fund1

ICICI Kinfra Limited1

ICICI Venture Value Fund1

I-Ven Biotech Limited1

ICICI Prudential Life Insurance Company Limited

ICICI Lombard General Insurance Company Limited

ICICI Prudential Asset Management Company Limited

ICICI Prudential Trust Limited

Financial Inclusion Network & Operations Limited

I-Process Services (India) Private Limited

29 NIIT Institute of Finance, Banking and Insurance

Training Limited

ICICI Merchant Services Private Limited

31 Mewar Aanchalik Gramin Bank

Consolidating entities under Accounting Standard 21.

a. Capital deficiencies

Venture capital fund – fully consolidated

Unregistered venture capital fund – fully consolidated

Infrastructure development consultancy – consolidated
for financial reporting but not for capital adequacy

Unregistered venture capital fund – fully consolidated

Investment in research and development of
biotechnology – fully consolidated

Life insurance – consolidated for financial reporting but
not for capital adequacy and deducted from capital for
capital adequacy

General Insurance – consolidated for financial reporting
but not for capital adequacy and deducted from capital
for capital adequacy

Asset management company for ICICI Prudential
Mutual Fund – fully consolidated

Trustee company for ICICI Prudential Mutual Fund –
fully consolidated

Unregistered venture capital fund – consolidated
by equity method for financial reporting but not
consolidated for capital adequacy

Support services for financial inclusion – consolidated
by equity method for financial reporting but not
consolidated for capital adequacy

Services related to back end operations – consolidated
by equity method for financial reporting but not
consolidated for capital adequacy

Education and training in banking and finance –
consolidated by equity method for financial reporting
but not consolidated for capital adequacy

Merchant servicing – consolidated by equity method
for financial reporting but not consolidated for capital
adequacy

Banking - consolidated by equity method for financial
reporting and deducted from capital for capital
adequacy

TCW/ICICI Investment Partners Limited

Asset management – proportionately consolidated

Rainbow Fund

Majority owned financial entities that are not consolidated for capital adequacy purposes and for which the
investment in equity and other instruments eligible for regulatory capital status are deducted from capital, meet their
respective regulatory capital requirements at all times. There is no deficiency in capital in any of the subsidiaries of
the Bank at March 31, 2012. ICICI Bank maintains an active oversight on its subsidiaries through its representation
on their respective Boards. On a periodic basis the capital adequacy/solvency position of subsidiaries (banking,
non-banking and insurance subsidiaries), as per the applicable regulations, is reported to their respective Boards
as well as to the Board of the Bank.

F94

BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)

at March 31, 2012

b. Bank’s interest in insurance entities

The book value of the Bank’s total interest in its insurance subsidiaries at March 31, 2012, which is deducted from
capital for capital adequacy under Basel II is detailed in the following table.

Name of the entity

Country of
incorporation

Ownership
interest

Book value of
investment

` in billion

ICICI Prudential Life Insurance Company Limited

ICICI Lombard General Insurance Company Limited

India

73.86%

73.44%

35.93

13.48

The quantitative impact on regulatory capital of using risk weighted investments method versus using the
deduction method at March 31, 2012 is set out in the following table.

Method

Deduction method

Capital at 9% based on risk weighted assets

2. CAPITAL STRUCTURE

` in billion

Quantitative impact

49.41

4.45

a. Summary information on main terms and conditions/features of capital instruments

As per the RBI capital adequacy norms, ICICI Bank’s regulatory capital is classified into Tier-1 capital and Tier-2
capital.

Tier-1 capital includes paid-up equity capital, statutory reserves, other disclosed free reserves, capital reserves
and innovative perpetual debt instruments (Tier-1 bonds) eligible for inclusion in Tier-1 capital that comply with
requirement specified by RBI.

Tier-2 capital includes revaluation reserves (if any), general provision and loss reserve, investment reserve, upper
Tier-2 instruments (upper Tier-2 bonds) and subordinate debt instruments (lower Tier-2 bonds) eligible for inclusion
in Tier-2 capital.

ICICI Bank and its subsidiaries have issued debt instruments that form a part of Tier-1 and Tier-2 capital. The terms
and conditions that are applicable for these instruments comply with the stipulated regulatory requirements and
where required an independent legal opinion has been obtained for inclusion of these instruments in capital.

Tier-1 bonds are non-cumulative and perpetual in nature with a call option after 10 years. Interest on Tier-1 bonds
is payable either annually or semi-annually. These Tier-1 bonds have a step-up clause on interest payment ranging
up to 100 basis points.

The upper Tier-2 bonds are cumulative and have an original maturity of 15 years with call option after 10 years.
The interest on upper Tier-2 bonds is payable either annually or semi-annually. Some of the upper Tier-2 debt
instruments have a step-up clause on interest payment ranging up to 100 basis points.

The lower Tier-2 bonds (subordinated debt) are cumulative and have an original maturity between 5 to 15 years.
The interest on lower Tier-2 capital instruments is payable quarterly, semi-annually or annually.

RBI through its circular dated January 20, 2011 stipulated that henceforth capital instruments issued with step-
up option will not be eligible for inclusion in the capital funds. Capital issuances with step-up option prior to the
release of the above-mentioned circular would continue to remain eligible for inclusion in regulatory capital. The
Bank is in compliance with this stipulation and the existing Tier-1 and Tier-2 capital instruments with step-up option
have all been issued prior to January 20, 2011.

F95

BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)

at March 31, 2012

b. Amount of Tier-1 capital (March 31, 2012)

Tier-1 capital elements

Paid-up share capital1

Reserves2

Innovative Tier-1 capital instruments

Minority interest

Gross Tier-1 capital

Deductions:

Investments in instruments eligible for regulatory capital of financial subsidiaries/
associates

Securitisation exposures including credit enhancements

Deferred tax assets

Others3

Minority interest not eligible for inclusion in Tier-1 capital

Net Tier-1 capital

` in billion

Amount

12.86

588.56

30.25

0.74

632.41

24.73

13.64

26.72

2.06

0.28

564.98

Includes preference shares permitted by RBI for inclusion in Tier-1 capital.

Includes statutory reserves, disclosed free reserves, capital reserves and special reserves (net of tax payable).

Includes goodwill and adjustments for less liquid positions.

c. Amount of Tier-2 capital (March 31, 2012)

Tier-2 capital elements

General provisions

Upper Tier-2 capital instruments

Lower Tier-2 capital instruments

Gross Tier-2 capital

Deductions:

` in billion

Amount

19.29

148.21

171.07

338.57

Investments in instruments eligible for regulatory capital of financial subsidiaries/associates

24.73

Securitisation exposures including credit enhancements

Net Tier-2 capital

d. Debt capital instruments eligible for inclusion in Tier-1 and Tier-2 capital

13.64

300.21

` in billion

Lower Tier-1

Upper Tier-2

Lower Tier-2

Total amount outstanding at March 31, 2012

30.25

148.21

Of which, amounts raised during the year

Amount eligible to be reckoned as capital funds at
March 31, 2012

30.25

148.21

e. Total eligible capital (March 31, 2012)

Tier-1 capital

Tier-2 capital

Total eligible capital

F96

214.28

16.65

171.07

` in billion

Amount

564.98

300.21

865.19

BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)

at March 31, 2012

3. CAPITAL ADEQUACY

a. Capital management

Objective

The Bank actively manages its capital to meet regulatory norms and current and future business needs considering
the risks in its businesses, expectation of rating agencies, shareholders and investors, and the available options of
raising capital.

Organisational set-up
The capital management framework of the Bank is administered by the Finance Group and the Risk Management
Group (RMG) under the supervision of the Board and the Risk Committee.

Regulatory capital
The Bank is subject to the capital adequacy norms stipulated by the RBI guidelines on Basel II. The RBI guidelines
on Basel II require the Bank to maintain a minimum ratio of total capital to risk weighted assets of 9.0%, with a
minimum Tier-1 capital adequacy ratio of 6.0%. The total capital adequacy ratio of the Bank at a standalone level at
March 31, 2012 as per the RBI guidelines on Basel II is 18.52% with a Tier-1 capital adequacy ratio of 12.68%. The
total capital adequacy ratio of the ICICI Group (consolidated) at March 31, 2012 as per the RBI guidelines on Basel
II is 19.60% with a Tier-1 capital adequacy ratio of 12.80%.

Under Pillar 1 of the RBI guidelines on Basel II, the Bank follows the standardised approach for credit and market
risk and basic indicator approach for operational risk.

Internal assessment of capital
The Bank’s capital management framework includes a comprehensive internal capital adequacy assessment
process (ICAAP) conducted annually and which determines the adequate level of capitalisation for the Bank to meet
regulatory norms and current and future business needs, including under stress scenarios. The ICAAP is formulated
at both standalone bank level and the consolidated group level. The ICAAP encompasses capital planning for a four
year time horizon, identification and measurement of material risks and the relationship between risk and capital.

The Bank’s capital management framework is complemented by its risk management framework (detailed in the
following sections), which includes a comprehensive assessment of material risks.

Stress testing which is a key aspect of the ICAAP and the risk management framework provides an insight on
the impact of extreme but plausible scenarios on the Bank’s risk profile and capital position. Based on the Board
approved stress testing framework, the Bank conducts stress tests on its various portfolios and assesses the
impact on its capital ratios and the adequacy of capital buffers for current and future periods. The Bank periodically
assesses and refines its stress tests in an effort to ensure that the stress scenarios capture material risks as well as
reflect possible extreme market moves that could arise as a result of market conditions.

The business and capital plans and the stress testing results of the group entities are integrated into the ICAAP.

Based on the ICAAP, the Bank determines its capital needs and the optimum level of capital by considering the
following in an integrated manner:

regulatory capital requirements as per the RBI guidelines;

(cid:135)(cid:3) Bank’s strategic focus, business plan and growth objectives;
(cid:135)(cid:3)
(cid:135)(cid:3) assessment of material risks and impact of stress testing;
(cid:135)(cid:3)
(cid:135)(cid:3)
(cid:135)(cid:3)

perception of credit rating agencies, shareholders and investors;

future strategy with regard to investments or divestments in subsidiaries; and

evaluation of options to raise capital from domestic and overseas markets, as permitted by RBI from time to time.

The Bank formulates its internal capital level targets based on the ICAAP and endeavours to maintain its capital
adequacy level in accordance with the targeted levels at all times.

Monitoring and reporting

The Board of Directors of ICICI Bank maintains an active oversight over the Bank’s capital adequacy levels. On a
quarterly basis an analysis of the capital adequacy position and the risk weighted assets and an assessment of the
various aspects of Basel II on capital and risk management as stipulated by RBI, are reported to the Board. Further,

F97

BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)

at March 31, 2012

the capital adequacy position of the banking subsidiaries and the significant non-banking subsidiaries based on
the respective host regulatory requirements is also reported to the Board. In line with the RBI requirements for
consolidated prudential report, the capital adequacy position of the ICICI Group (consolidated) is reported to the
Board on a half-yearly basis.

Further, the ICAAP which is an annual process also serves as a mechanism for the Board to assess and monitor the
Bank’s and the Group’s capital adequacy position over a four year time horizon.

Capital adequacy of the subsidiaries
Each subsidiary in the Group assesses the adequate level of capitalisation required to meet its respective host
regulatory requirements and business needs. The Board of each subsidiary maintains oversight over the capital
adequacy framework for the subsidiary either directly or through separately constituted committees.

Basel III
In order to strengthen the resilience of the banking sector to potential future shocks, together with ensuring adequate
liquidity in the banking system, the Basel Committee on Banking Supervision (BCBS) issued the Basel III proposals
on December 17, 2009. Following a consultation phase on these proposals, the final set of Basel III rules were issued
on December 16, 2010. The Basel III rules on capital consist of measures on improving the quality, consistency
and transparency of capital, enhancing risk coverage, introducing a supplementary leverage ratio, reducing
procyclicality and promoting countercyclical buffers, and addressing systemic risk and interconnectedness. The
Basel III rules on liquidity consist of a measure of short-term liquidity coverage ratio aimed at building liquidity
buffers to meet stress situations and a measure of long-term net stable funding ratio aimed at promoting longer
term structural funding. BCBS has stipulated a phased implementation of the Basel III framework between January
1, 2013 and January 1, 2019.

On May 2, 2012, RBI issued the final guidelines on the Basel III capital regulations. We continue to monitor
developments on the Basel III framework and believe that our current robust capital adequacy position, adequate
headroom currently available to raise hybrid/debt capital and demonstrated track record of access to domestic and
overseas markets for capital raising will enable us to adapt to the Basel III framework. RBI issued the draft guidelines
on Basel III liquidity standards on February 21, 2012 and solicited feedback from the industry on these guidelines.
The final guidelines on Basel III liquidity standards are awaited from RBI.

b. Capital requirements for various risk areas (March 31, 2012)

As required by RBI guidelines on Basel II, the Bank’s capital requirements have been computed using the
Standardised approach for credit risk, Standardised Duration method for market risk and Basic Indicator approach
for operational risk. The minimum capital required to be held at 9.00% for credit, market and operational risks is
given below:

I. Capital required for credit risk

for portfolio subject to standardised approach

for securitisation exposure

II. Capital required for market risk

for interest rate risk2

for foreign exchange (including gold) risk

for equity position risk

III. Capital required for operational risk

Total capital requirement (I+II+III)

Total capital funds of the Bank

Total risk weighted assets

Capital adequacy ratio

1. Includes all entities considered for Basel II capital adequacy computation.
2. Includes capital required of ` 0.22 billion for securitisation exposure.

F98

` in billion

Amount1

339.19

338.08

1.11

31.96

26.06

0.87

5.03

26.19

397.34

865.19

4,414.88

19.60%

BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)

at March 31, 2012

The capital ratios of the Bank and its banking subsidiaries at March 31, 2012 are as follows:

Capital ratios

Tier-1 capital ratio

Total capital ratio

ICICI Bank Ltd
(consolidated)1

ICICI Bank Ltd
(standalone)1

ICICI Bank UK
PLC1

ICICI Bank
Canada1

ICICI Bank
Eurasia LLC1,2

12.80%

19.60%

12.68%

18.52%

21.18%

32.42%

29.85%

31.69%

n.a.

27.71%

Computed as per capital adequacy guidelines issued by regulators of respective jurisdictions.

Tier-1 capital ratio is not required to be reported in line with regulatory norms stipulated by the Central Bank of Russia.

4. RISK MANAGEMENT FRAMEWORK

As a financial intermediary, the Bank is exposed to various types of risks including credit, market, liquidity, operational,
legal, compliance and reputation risks. The objective of the risk management framework at the Bank is to ensure that
various risks are understood, measured and monitored and that the policies and procedures established to address
these risks are strictly adhered to.
The key principles underlying the risk management framework at the Bank are as follows:
1. The Board of Directors has oversight on all the risks assumed by the Bank. Specific Committees of the Board
have been constituted to facilitate focused oversight of various risks. The Risk Committee reviews the risk
management policies, the Bank’s compliance with risk management guidelines stipulated by the RBI and the status
of implementation of the advanced approaches under the Basel framework. It reviews key risk indicators covering
areas such as credit risk, interest rate risk, liquidity risk, foreign exchange risk, operational and outsourcing risks
and the limits framework, including stress test limits for various risks. The Risk Committee also reviews the risk
profile of the overseas banking subsidiaries. Credit Committee reviews developments in key industrial sectors
and the Bank’s exposure to these sectors and various portfolios on a periodic basis. Audit Committee provides
direction to and also monitors the quality of the internal audit function.

2. Policies approved from time to time by the Board of Directors/Committees of the Board form the governing

framework for each type of risk. The business activities are undertaken within this policy framework.

Independent groups and sub-groups have been constituted across the Bank to facilitate independent evaluation,
monitoring and reporting of various risks. These control groups function independently of the business groups/
sub-groups.

The risk management framework forms the basis of developing consistent risk principles across the Bank, overseas
branches and overseas banking subsidiaries.

Material risks are identified, measured, monitored and reported to the Board of Directors and Board level committees

through the following:

a. Risk profile templates
Bank-wide risk dashboard covering various risks of the Bank is presented to the Risk Committee and to the
Board on a quarterly basis. The risk dashboard provides the level and the direction of risk at Bank level with
a comparison to the previous quarter. The level and direction of risk are arrived at based on pre-determined
parameters. Additionally, the key risk indicators for different risks are also presented to the Risk Committee as
part of the risk profile templates on a periodic basis.

b. ICAAP/stress testing
As part of ICAAP, the Bank conducts stress testing under various historical and hypothetical scenarios to assess
the impact of stress on current and projected capital positions. The methodology for stress testing is approved
by the Board of Directors. The results of stress testing are reported to the Board of Directors and submitted
to RBI annually as part of the ICAAP. As detailed in the ICAAP, stress test results are reported periodically for
various risks to the Asset Liability Management Committee (ALCO).

c. Stress tolerance limits

In line with various risk limits applicable for the Bank’s portfolios, stress tolerance limits have been formulated
for various risks. The actual position/utilisation against the limits is periodically reported to Board level
committees/ALCO.

F99

BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)

at March 31, 2012

d. Other reviews by Credit Committee
Apart from sanctioning proposals, the Credit Committee carries out reviews of the credit quality of the portfolio
at regular intervals. The Committee also reviews specific cases that need special attention, details of credit
sanctions, irregularity reports and movement in non-performing loans. Further, the Committee reviews
developments in industrial sectors and specific strategies of the Bank with respect to the exposure to various
industries.

e. Reporting against prudential exposure norms

Status of actual position against prudential exposure limits set by the Board or stipulated by RBI is reported
periodically to respective committees.

Measurement of risks for capital adequacy purposes
Under Pillar 1 of the extant RBI guidelines on Basel II, the Bank currently follows the standardised approach for credit
and market risk and basic indicator approach for operational risk.

5. CREDIT RISK

The Bank is exposed to credit risk in its lending operations. Credit risk is the risk of loss that may occur from the failure
of any counterparty to abide by the terms and conditions of any financial contract with the Bank, principally the failure
to make required payments as per the terms and conditions of the contracts.

Policies and processes
All credit risk related aspects are governed by Credit and Recovery Policy (Credit Policy). Credit Policy outlines the type
of products that can be offered, customer categories, target customer profile, credit approval process and limits. The
Credit Policy is approved by the Board of Directors.
The delegation structure for approval of credit limits is approved by the Board of Directors. All credit proposals other
than retail products, program lending and certain other specified products are rated internally by the Risk Management
Group (RMG) prior to approval by the appropriate forum.
Credit facilities with respect to retail products are provided as per approved product policies. All retail products and
policies require the approval of the Committee of Executive Directors (COED).
(cid:135)(cid:3) Within the retail operations, there is segregation of the sourcing, verification, approval and disbursement of retail

credit exposures to achieve independence.

(cid:135)(cid:3) Program lending involves a cluster based approach, wherein a lending program is implemented for a homogeneous
group of individuals/business entities, which comply with certain laid down parameterised norms. The approving
authority as per the Board approved authorisation lays down these parameters.

(cid:135)(cid:3) For certain products including dealer funding, builder finance and facilities fully collateralised by cash and cash
equivalents, the delegation structure approved by the Board of Directors may permit exemption from the stipulation
pertaining to internal rating, up to a certain loan amount. Credit approval limits with respect to such products are
laid out in the delegation structure approved by the Board of Directors.

A risk based asset review framework has been put in place wherein the frequency of asset review would be higher for
cases with higher outstanding and/or lower credit rating.

Structure and organisation
RMG is responsible for rating of the credit portfolio, tracking trends in various industries and periodic reporting of
portfolio-level changes. RMG is segregated into sub-groups for corporate, small enterprises, rural and agri-linked
banking group and retail businesses.
The overseas banking subsidiaries of the Bank have also established similar structures to ensure adequate risk
management, factoring in the risks particular to the respective businesses and the regulatory and statutory guidelines.
The risk heads of all overseas banking subsidiaries have a reporting relationship to the Head - RMG, in addition to
reporting to the Chief Executive Officer of the respective subsidiaries.

Credit risk assessment process
There is a structured and standardised credit approval process including a comprehensive credit risk assessment
process, which encompasses analysis of relevant quantitative and qualitative information to ascertain credit rating of
the borrower.
The credit rating process involves assessment of risk emanating from various sources such as industry risk, business
risk, financial risk, management risk, project risk and structure risk.

F100

BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)

at March 31, 2012

In respect of retail advances, the Bank’s credit officers evaluate credit proposals on the basis of the operating notes
approved by the COED and the risk assessment criteria defined by RMG.

Credit approval authorisation structure
The Board of Directors has delegated the approving authority to committees such as the Credit Committee (comprising a
majority of independent Directors), the COED (comprising whole time Directors), the Committee of Senior Management
(comprising Whole Time Directors and Group Executives/Presidents), the Committee of Executives, the Regional
Committee, Small and Medium Enterprise and Corporate Agriculture Forums (SMEAG forums) and Retail Credit Forums
(RCF forums) (comprising of designated executives), and also to individual executives (under joint delegation). SMEAG
forums, RCF forums and individual executives (under joint delegation) can approve proposals under program norms
(Programs approved by the COED). The above authorities can approve financial assistance within certain individual and
group exposure limits set by the Board of Directors. The authorisation is based on the level of risk and the quantum of
exposure, to ensure that the transactions with higher exposure and level of risk are put up to correspondingly higher
forum/committee for approval.
In respect of retail loans, all exposures are approved under operating notes or programs approved by the COED. This
involves a cluster-based approach for a particular product or for homogeneous group of individuals/business entities
that comply with certain laid down parameterised norms. The norms vary across product segments/customer profile,
but typically include factors such as the borrower’s income, the loan-to-value ratio and demographic parameters. The
individual credit proposals are evaluated and approved by executives on the basis of the product policies.

Credit risk monitoring process
For effective monitoring of credit facilities, a post-approval authorisation structure has been laid down. For corporate,
small enterprises and rural and agriculture linked banking business, Credit Middle Office Group verifies adherence to
the terms of the approval prior to commitment and disbursement of credit facilities.
The Bank has established centralised operations to manage operational risk in the various back office processes of
the Bank’s retail loan business except for a few operations, which are decentralised to improve turnaround time for
customers. The fraud prevention and control group manages fraud-related risks through fraud prevention and through
recovery of fraud losses. The fraud control group evaluates various external agencies involved in the retail finance
operations, including direct marketing associates, external verification associates and collection agencies.
The Bank has a collections unit structured along various product lines and geographical locations, to manage delinquency
levels. The collections unit operates under the guidelines of a standardised recovery process.
The segregation of responsibilities and oversight by groups external to the business groups ensure adequate checks
and balances.

Reporting and measurement
Credit exposure for the Bank is measured and monitored using a centralised exposure management system. The
analysis of the composition of the portfolio is presented to the Risk Committee on a quarterly basis.
The Bank complies with the norms on exposure stipulated by RBI for both single borrower as well as borrower group at
the consolidated level. Limits have been set as a percentage of the Bank’s consolidated capital funds and are regularly
monitored. The utilisation against specified limits is reported to the COED and Credit Committee on a periodic basis.

Credit concentration risk
Credit concentration risk arises mainly on account of concentration of exposures under various categories including
industry, products, geography, sensitive sectors, underlying collateral nature and single/group borrower exposures.
Limits have been stipulated on single borrower, borrower group, industry and longer tenure exposure to a borrower
group. Exposure to top 10 borrowers and borrower groups, exposure to capital market segment and unsecured
exposures for the ICICI Group (consolidated) are reported to the senior management committees on a quarterly basis.
Limits on countries and bank counterparties have also been stipulated.

Definition and classification of non-performing assets (NPAs)
The Bank classifies its advances (loans and credit substitutes in the nature of an advance) into performing and non-
performing loans in accordance with the extant RBI guidelines.

An NPA is defined as a loan or an advance where:
i)

interest and/or installment of principal remain overdue for more than 90 days in respect of a term loan. Any amount
due to the bank under any credit facility is ‘overdue’ if it is not paid on the due date fixed by the Bank;

F101

BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)

at March 31, 2012

ii)

if the interest due and charged during a quarter is not serviced fully within 90 days from the end of the quarter;

iii)

the account remains ‘out of order’ in respect of an overdraft/cash credit facility. An account is treated as ‘out of
order’ if:

a. the outstanding balance remains continuously in excess of the sanctioned limit/drawing power for 90 days; or
b. where the outstanding balance in the principal operating account is less than the sanctioned limit/drawing

power, but there are no credits continuously for 90 days as on the date of the balance sheet; or
c. credits in the account are not enough to cover the interest debited during the accounting period; or
d. drawings have been permitted in the account for a continuous period of 90 days based on drawing power
computed on the basis of stock statements that are more than three months old even though the unit may be
working or the borrower’s financial position is satisfactory; or

e. the regular/ad hoc credit limits have not been reviewed/renewed within 180 days from the due date/date of ad

hoc sanction.

iv) a bill purchased/discounted by the Bank remains overdue for a period of more than 90 days;

interest and/or installment of principal in respect of an agricultural loan remains overdue for two crop seasons for
short duration crops and one crop season for long duration crops;

vi)

In respect of a securitisation transaction undertaken in terms of the RBI guidelines on securitisation, the amount of
liquidity facility remains outstanding for more than 90 days;

vii) In respect of derivative transactions, if the overdue receivables representing positive mark-to-market value of a

derivative contract, remain unpaid for a period of 90 days from the specified due date for payment.

Irrespective of payment performance, the Bank identifies a borrower account as an NPA even if it does not meet any of
the above mentioned criteria, where:
(cid:135)(cid:3)
(cid:135)(cid:3)
(cid:135)(cid:3) project does not commence commercial operations within the timelines permitted under the RBI guidelines in

loans availed by a borrower are repeatedly restructured unless otherwise permitted by regulations;
loans availed by a borrower are classified as fraud;

respect of the loans extended to a borrower for the purpose of implementing a project; and

(cid:135)(cid:3) any security in nature of debenture/bonds/equity shares issued by a borrower and held by the Bank is classified as

non-performing investment.

Further, non performing investments are identified as per extant regulations.

Further, NPAs are classified into sub-standard, doubtful and loss assets based on the criteria stipulated by RBI. A sub-
standard asset is one, which has remained a NPA for a period less than or equal to 12 months. An asset is classified as
doubtful if it has remained in the sub-standard category for more than 12 months. A loss asset is one where loss has been
identified by the Bank or internal or external auditors or during RBI inspection but the amount has not been written off fully.

Restructured assets
As per RBI guidelines, a fully secured standard loan can be restructured by rescheduling principal repayments and/
or the interest element, but must be separately disclosed as a restructured loan in the year of restructuring. Similar
guidelines apply to restructuring of substandard and doubtful loans.
A sub-standard/doubtful asset, which has been restructured, will be upgraded to the standard category only after a
satisfactory performance by the borrower over a period of time. The RBI has specified the period to be one year from
date when the instalment/interest falls due as per the restructuring scheme.

a. Credit risk exposures (March 31, 2012)

Credit risk exposures (excluding specific risk on available-for-sale and held-for-trading portfolio) include all credit
exposures as per RBI guidelines on exposure norms and investments in the held-to-maturity category. Domestic
sovereign exposures that are risk-weighted at zero percent and exposures to regulatory capital instruments of
subsidiaries that are deducted from the capital funds have been excluded.

Category
Fund-based facilities
Non-fund based facilities
Total1

Includes all entities considered for Basel II capital adequacy computation.

F102

` in billion

Credit exposure
4,311.26
3,019.83
7,331.09

BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)

at March 31, 2012

b. Geographic distribution of exposures (March 31, 2012)