iMobile
Your bank in an app.
Offers more than 250 services
for banking, payments,
investments and shopping
Mera iMobile
The multilingual mobile banking app
for our rural customers. Get banking
services, current mandi prices and
real-time weather information in
11 languages
Eazypay
Designed for merchants to receive
payments from customers digitally
through cards, internet banking,
UPI and more
Pockets
ICICI Bank’s e-wallet for easy
recharges, bill payments,
shopping and offers
Money2India
A convenient and secure remittances
app that helps our NRI customers
to quickly send money to their
loved ones back home
ICICI Bank Limited, ICICI Bank Towers, Bandra-Kurla Complex,
Mumbai 400 051 | www.icicibank.com
SS_2019_APR_ICICI BANK LIMITED_CORPORATE_11169034_ICICI BROCHURE_SIZE 8.25(W) x 10.75(H)_INCH_CLOSE SIZE
A N N U A L
R E P O R T
2 0 1 8 - 1 9
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X P AYMENTS
A
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& I N SURANCE
F
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HO P P ING OFFE
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S
S
INSTA LOA N S
INSTA F D
PAYM E N T
S
DIGITAL BANKING SOLUTIONS
CONVENIENT
SAFE
FAST
Our approach to reporting
About this report
In this Annual Report, ICICI Bank Limited has sought to
adopt the principles of the International Integrated Reporting
Framework as developed by the International Integrated
Reporting Council (IIRC). Through this report, the Bank aims
to provide its stakeholders a comprehensive view of the
organisation’s
financial and non-financial resources and
its strategy to create long-term value. The report provides
insights
its strategic
priorities, risks and mitigants, governance structure, and the
manner in which it has leveraged the six capitals, namely
Financial, Manufactured,
Intellectual, Human, Social and
Relationship, and Natural. Details on the various capitals
are covered in the chapters: ICICI Bank's Business Model,
Management's Discussion & Analysis, Strategic Focus Areas
for Business, Human Capital, Social and Relationship Capital
and Natural Capital.
into the Bank’s primary activities,
Reporting boundary
The non-financial information in the integrated report largely
covers data on the India operations of ICICI Bank Limited and
ICICI Foundation for Inclusive Growth.
Reporting period
The Annual Report provides material information relating to
the Bank's strategy and business model, operating context,
performance and statutory disclosures covering the financial
year April 1, 2018 to March 31, 2019.
Safe Harbour
Certain statements in this Annual Report relating to a future
period of time (including inter alia concerning our future
business plans or growth prospects) are forward-looking
statements intended to qualify for the 'safe harbour' under
Contents
INTEGRATED REPORT
ICICI Bank at a Glance
Key Business Areas
Financial Highlights
Message from the Chairman
Board of Directors
Message from the Wholetime Directors
ICICI Bank’s Business Model
Strategic Focus Areas for Business
ICICI Bank’s Risk Governance Framework
Key Risks Impacting the Bank’s Business
Human Capital
Social and Relationship Capital
Natural Capital
STATUTORY REPORTS
Directors’ Report
Independent Auditor's Certificate on
Corporate Governance
Management’s Discussion & Analysis
Key Financial Indicators: Last 10 Years
2
4
6
8
10
11
12
14
26
27
32
36
42
47
117
118
140
applicable securities laws including the US Private Securities
Litigation Reform Act of 1995. Such
forward-looking
statements involve a number of risks and uncertainties
that could cause actual results to differ materially from
those in such forward-looking statements. These risks and
uncertainties include, but are not limited to statutory and
regulatory changes, international economic and business
conditions; political or economic instability in the jurisdictions
where we have operations, increase in non-performing loans,
unanticipated changes in interest rates, foreign exchange
rates, equity prices or other rates or prices, our growth and
expansion in business, the adequacy of our allowance for credit
losses, the actual growth in demand for banking products
and services, investment income, cash flow projections, our
exposure to market risks, changes in India’s sovereign rating,
as well as other risks detailed in the reports filed by us with
the United States Securities and Exchange Commission. Any
forward-looking statements contained herein are based on
assumptions that we believe to be reasonable as of the date
of this release. ICICI Bank undertakes no obligation to update
forward-looking statements to reflect events or circumstances
after the date thereof. Additional risks that could affect our
future operating results are more fully described in our filings
with the United States Securities and Exchange Commission.
These filings are available at www.sec.gov
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FINANCIAL STATEMENTS
Independent Auditors’ Report –
Financial Statements
Financial Statements of ICICI Bank Limited
Independent Auditors’ Report –
Consolidated Financial Statements
Consolidated Financial Statements of ICICI
Bank Limited and its Subsidiaries
Statement Pursuant to Section 129 of
Companies Act, 2013
Basel Pillar 3 Disclosures
Glossary of Terms
142
152
238
252
307
309
310
Digital Banking Solutions
Convenient | Fast | Safe
ICICI Bank has played a pioneering role in
the digital transformation of the financial
services industry in India. We continuously
invest in innovative products and state-of-
the-art platforms
leverage emerging
that
technologies to make banking easier, safer,
more personalised, more accessible and more
intuitive for our customers and also enable us
to become more agile and more efficient.
The customer is at the centre of all our
initiatives and we believe in being ‘Fair to
Customer, Fair to Bank’.
At ICICI Bank, we believe that digitally-enabled
banking solutions not only empower our
customers to fulfil their ambitions but also
create value for our stakeholders.
1
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS ANNUAL REPORT 2018-19
ICICI BANK AT A GLANCE
ICICI Bank is a large private sector bank in India offering a
diversified portfolio of financial products and services to retail,
SME and corporate customers. The Bank has an extensive
network of branches and ATMs. It is at the forefront of offering
state-of-the-art services through digital channels like mobile
and internet banking and leveraging emerging technologies.
Vision
To be the trusted financial services
provider of choice for our customers,
thereby creating sustainable value for
our stakeholders
H 12.39 trillion
H 220.72 billion
Consolidated Total Assets
Core Operating Profit*
16.89%
Total Capital Adequacy Ratio
44.6%
Average CASA ratio
3.42%
Net Interest Margin
14,987
ATMs
4,874
Branches
2
46.9%
Retail Loans as a proportion
of total loans (including
non-fund based outstanding)
Over 86%
Savings Account transactions
done through digital channels*
* during fiscal 2019; others at March 31, 2019
INTEGRATED REPORT
STATUTORY REPORTS
FINANCIAL STATEMENTS
Mission
To grow our risk-calibrated core operating profit by:
Delivering products and services that create value
for customers
Bringing together all our capabilities to seamlessly
meet customer needs
Conducting our business within well-defined risk
tolerance levels
Bouquet of 'insta' products
In fiscal 2019, the Bank extended
its range of first-of-its-kind 'insta'
offerings, enabling retail and
MSME customers to avail these
products in a digital manner,
without visiting a branch.
Best Company to Work for
Business Today magazine ranked
the Bank as the 'Best Company to
Work for' in the BFSI sector in fiscal
2019 for the third year in a row.
iPal resolved over
13 million queries
The Bank's AI-powered chatbot
resolved over 13 million customer
queries in fiscal 2019.
Skilled over
400,000 individuals
ICICI Foundation for Inclusive
Growth imparted vocational training
to over 400,000 less-privileged
individuals since inception.
3
KEY BUSINESS AREAS
Providing financial solutions for every customer
RETAIL, SME AND RURAL BANKING
We offer deposit, credit and other financial products and
services to individuals, households and small businesses
across India, through our digital channels and extensive
branch network spanning urban and rural areas. We also
offer select products like deposits and remittances to
non-resident Indians, and local market offerings in select
international geographies.
WHOLESALE BANKING
We offer financial solutions to large and medium sized
companies and their business and channel partners,
and to financial and government/public sector entities.
The product offerings
long-term
finance, working capital, trade, cash management,
In
transaction banking and treasury management.
addition to our network in India, we leverage our
international presence
the cross-border
requirements of our clients.
include deposits,
to meet
TREASURY
Our treasury operations comprise management of
the Bank’s liquidity, government securities portfolio
and interest rate risk, proprietary trading, and foreign
exchange and derivative solutions for clients.
4
ANNUAL REPORT 2018-19 KEY SUBSIDIARIES
5
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS
TOTAL DEPOSITS
TOTAL ADVANCES
6,529.20
5,609.75
4,900.39
4,214.26
3,615.63
2,710.50
3,289.79
2,432.17
2,283.26
1,971.83
1,148.60
1,342.30
2,009.67
2,276.71
1,718.39
5,866.47
10.7%
5.2%
24.0%
5,123.95
12.5%
5.0%
25.9%
4,642.32
16.1%
4.8%
27.3%
4,352.64
21.6%
4.3%
27.5%
3,875.22
24.3%
4.4%
28.8%
42.5%
46.6%
51.8%
56.6%
60.1%
495.20
588.70
749.83
889.58
962.70
March
2015
March
2016
March
2017
March
2018
March
2019
March
2015
March
2016
March
2017
March
2018
March
2019
Current Account (` in billion)
Savings Account (` in billion)
Term Deposit (` in billion)
Total (` in billion)
Retail
Domestic Corporate
Small & Medium Enterprise (SME)
Overseas
Total (` in billion)
TOTAL ASSETS
CAPITAL ADEQUACY
9,644.59
8,791.89
7,717.91
7,206.95
6,461.29
17.02%
16.64%
4.24%
3.55%
12.78%
13.00%
17.39%
3.03%
13.74%
18.42%
2.50%
14.43%
16.89%
1.80%
13.63%
12.78%
13.09%
14.36%
15.92%
15.09%
March
2015
March
2016
March
2017
March
2018
March
2019
March
2015
March
2016
March
2017
March
2018
March
2019
Total Assets (` in billion)
Tier I
Tier II
CET1
Total
6
ANNUAL REPORT 2018-19 NII & NIM
PROVISION COVERAGE RATIO
270.15
70.6%
212.24
190.40
3.48%
3.49%
217.37
230.26
3.25%
3.23%
3.42%
58.6%
50.6%
47.7%
40.2%
FY2015
FY2016
FY2017
FY2018
FY2019
March
2015
March
2016
March
2017
March
2018
March
2019
Net Interest Income (NII) (` in billion)
Net Interest Margin (NIM)
Provision Coverage Ratio (%)
UNCONSOLIDATED NET PROFIT
CORE OPERATING PROFIT
111.75
97.26
98.01
198.03
180.27
179.10
189.39
220.72
67.77
33.63
FY2015
FY2016
FY2017
FY2018
FY2019
FY2015
FY2016
FY2017
FY2018
FY2019
Unconsolidated Net Profit (` in billion)
Core Operating Profit (` in billion)
(Profit before provisions and tax, excluding treasury income)
7
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS MESSAGE FROM THE CHAIRMAN
It has been an eventful and rewarding year as
Chairman of the Board of ICICI Bank. The year was
marked by improved operating profitability and further
strengthening of the balance sheet of the Bank, as
well as expansion of the Board and new strategic
initiatives by the executive management. The ICICI
brand is one of India’s oldest and strongest financial
services brands and we continue to contribute to
nation building, pioneer innovation, serve the growing
financial needs of society and be a significant part of
the financial services ecosystem.
We are optimistic about the inherent medium and
long-term potential of
Indian economy. Key
the
economic parameters have been stable with inflation
at comfortable levels and interest rates moderating.
The priority now would be to harness investment and
consumption drivers to accelerate the pace of growth.
As growth gains momentum, it will lead to many more
opportunities for all sectors of the economy and in
turn for financial services.
In the last few years, the banking system and the
Bank have gone through a challenging period with an
elongated credit cycle and accumulated stress in the
system. Several factors including important policy
initiatives such as the enactment and implementation
of the Insolvency and Bankruptcy Code (IBC) are
playing their part in addressing the past challenges.
The changes are now visible and resolutions have
gathered pace allowing banks to prepare for a new
phase of growth. As the process evolves, operational
inefficiencies will be resolved resulting in a more
mature and better-equipped mechanism for resolution
of stressed assets. During the year, liquidity challenges
in the non-banking financial sector highlighted the
importance of prudent risk management and judicious
asset liability management. During this period, the
banking system was largely unaffected by the tight
liquidity conditions due to well-established practices
and a stable liability profile. The banking system
helped to mitigate the impact of the challenges in the
non-banking finance companies and benefitted from
increased lending opportunities.
Over the last year, the Bank has undertaken several
initiatives to secure a sustainable and profitable future.
Many of these initiatives are internal and aimed at
making structural changes within the Bank. They will
continue to strengthen the Bank's core and improve its
profitability going forward.
The Bank has focussed
on growing risk calibrated
operating profit by
leveraging its strong
franchise, and building a
more granular and higher
rated portfolio.
8
ANNUAL REPORT 2018-19 advantage. The Bank has established norms
for governance, and strictly deals with cases in
accordance with these norms. In keeping with the
focus on governance, the Board of Directors has
been expanded and has been further diversified
in the past year. Our new board members include
several eminent persons with a wide range of
technology, corporate governance
experience
and regulatory bodies among others. I am sure the
Board and management will immensely benefit from
their expertise and support. With these changes the
Bank is in a good position to be proactive in adapting
to and addressing emerging opportunities and
risks in the system.
in
Over the years, ICICI has established a number of non-
banking financial services businesses that serve the
spectrum of financial needs. The Bank’s non-banking
businesses are among the leaders in their market
segments. We are the only financial conglomerate in
India with four listed companies including the Bank.
Each of these businesses is focussed on maximising
its share of the financial services opportunity in
a profitable manner, with a focus on prudent risk
management and customer centricity.
I wish to thank all our stakeholders and my colleagues
on the Board of Directors. Together we look forward to
a bright future for this esteemed institution.
With best wishes,
Girish Chandra Chaturvedi
Chairman
large opportunity offered by
The management team has worked hard to grow
the business, substantially improve core operating
profitability and address the stress of the past. Given
India’s growth
the
potential, the Bank has aimed to maximise market
share by leveraging its strengths as a well-recognised
brand and a strong and diversified liability franchise in
driving growth in key customer segments. The Bank
has focussed on growing risk calibrated operating
profit by leveraging its strong franchise, and building a
more granular and higher rated portfolio. The balance
sheet of the Bank has been strengthened substantially
in the past year and risk management practices are
oriented towards building a more sustainable and
profitable growth profile. With continued improvement
in operating profitability and normalisation of credit
costs, the Bank would seek to deliver better returns
to shareholders.
Entities in the financial sector have transformed from
standalone companies to diversified conglomerates
and are now venturing into the domain of ecosystems
where they are capable of fulfilling a broad spectrum of
financial requirements of their customers across retail,
corporate and other segments. This new perspective of
business has initiated a behavioural change in entities
to be on the lookout for new partnerships, customer
segments and ways to better serve existing customers.
The Bank has been a technology leader and has been
able to leverage technology to introduce new and more
convenient ways of accessing the Bank’s services.
We are confident that innovation is prospering both
within and outside the banking system, and the Bank
will build and leverage partnerships to multiply its
efforts to provide a best-in-class experience through
the life cycle of its services.
this new phase of expansion,
For
it becomes
necessary to not just re-think the current way of doing
business but also to establish strong governance
practices. The Bank is committed to high standards of
regulatory compliance and governance and views this
as a key guiding force that strengthens its competitive
9
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS BOARD OF DIRECTORS
Board Members
Girish Chandra Chaturvedi
Non-Executive (part-time)
Chairman
Hari L. Mundra
Independent
Director
Lalit Kumar
Chandel
Government
Nominee Director
S. Madhavan
Independent
Director
Neelam Dhawan
Independent
Director
Radhakrishnan
Nair
Independent
Director
Rama Bijapurkar
Independent
Director
B. Sriram
Independent
Director
Uday Chitale
Independent
Director
Anup Bagchi
Executive Director
Sandeep Bakhshi
Managing Director
& CEO
Sandeep Batra
Executive Director
(Designate)*
Vishakha Mulye
Executive Director
Chief Financial Officer
Rakesh Jha
Company Secretary
Ranganath Athreya
10
Board Committees
Audit Committee
Uday Chitale, Chairman
S. Madhavan
Radhakrishnan Nair
Board Governance, Remuneration &
Nomination Committee
Neelam Dhawan, Chairperson
Girish Chandra Chaturvedi
Rama Bijapurkar
B. Sriram
Corporate Social Responsibility Committee
Radhakrishnan Nair, Chairman
Rama Bijapurkar
Uday Chitale
Anup Bagchi
Credit Committee
Sandeep Bakhshi, Chairman
Girish Chandra Chaturvedi
Hari L. Mundra
Vishakha Mulye
Customer Service Committee
Rama Bijapurkar, Chairperson
Hari L. Mundra
Anup Bagchi
Sandeep Bakhshi
Fraud Monitoring Committee
S. Madhavan, Chairman
Neelam Dhawan
Radhakrishnan Nair
Anup Bagchi
Sandeep Bakhshi
Information Technology Strategy Committee
B. Sriram, Chairman
Neelam Dhawan
Anup Bagchi
Sandeep Bakhshi
Risk Committee
B. Sriram , Chairman
S. Madhavan
Sandeep Batra*
Stakeholders Relationship Committee
Hari L. Mundra, Chairman
Uday Chitale
Anup Bagchi
* Will be inducted as a member with effect
from the date of RBI approval of his
appointment.
ANNUAL REPORT 2018-19 MESSAGE FROM THE WHOLETIME DIRECTORS
Over the past year, we as a team have
worked
towards
single-mindedly
strengthening ICICI Bank’s balance
sheet and franchise, and increasing
the Bank’s share of profitable
business opportunities. We believe
these efforts are reflected in the
core operating profit growth, the
substantial increase in provisioning
coverage and the reduction in net
NPAs. As India continues its march
to become a USD 5 trillion economy
in the next few years, we will work
towards maximising our share of
is
the opportunity. Our objective
Sandeep Bakhshi
Managing Director & CEO
Anup Bagchi
Executive Director
The customer has always been at the
core of ICICI Bank’s retail strategy.
In fiscal 2019, the Bank launched
new initiatives in both loans and
deposits segments to offer more
convenience
to customers. We
added a few more digital lending
products to our bouquet of instant
loans by leveraging technology and
data analytics. The list includes
instant home loan approvals to
instant
pre-approved customers,
top-up home
to existing
customers, instant approval for car
and two-wheeler loans and instant
'PayLater'.
digital credit called
We have also launched an array
of products to add more value
to our customers’ lives with new
savings accounts, innovative fixed
deposit plans, and credit cards in
association with various partners.
loans
Sandeep Batra
Executive Director
(Designate)*
The Bank’s
risk management
policies of the last few years have
resulted in improving incremental
asset quality even as slippages
from the older portfolio reduced.
The Bank has improved the rating
mix of the portfolio and reduced
the concentration risk, along with
expansion of net interest margin.
We will continue to drive efficiencies
by decongesting and automating
our processes. We are focussed
in core operating
on growth
profits and
lower credit costs,
within the guardrails of sound risk
management and a commitment
to
regulatory compliance. We
will continue to adhere to strong
governance
as we
focus on sustainable growth and
value creation.
standards
level,
to reduce
to grow our core operating profit
the credit costs
and
to a normalised
thereby
delivering sustainable returns to our
shareholders. ‘Fair to Customer, Fair to
Bank’ is an essential element of our
approach. We have made significant
changes in our organisation to align
ourselves to the opportunity and to
ensure seamless and collaborative
efforts across the Bank. We thank
our stakeholders for the confidence
reposed in us, and look forward to
your continued support.
Vishakha Mulye
Executive Director
In fiscal 2019, we continued with our
risk calibrated growth strategy and
strengthened our wholesale banking
the objective of
franchise with
capitalising on market opportunities
and growing our core operating
profit. We continued to grow our
credit portfolio with
focus on
granularity, transaction banking and
in the credit rating
improvement
profile, with enhanced
focus on
pricing. We maintained our recovery
and resolution efforts on the non-
performing assets. We reorganised
our business in line with market
opportunities, put more effective
cross-sell strategies
for
both retail and corporate products.
the number
We also
corporate
serving
of branches
clients and
innovative
introduced
products and solutions such as
digitised trade offerings for superior
customer experience.
increased
in place
* Will be inducted as a member with effect from the date of RBI approval of his appointment.
11
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS ICICI BANK’S BUSINESS MODEL
CAPITALS
VALUE DRIVERS
CORE BUSINESS ACTIVITIES
Financial Capital
Maintain a strong balance
sheet and enable business
continuity, sustained growth
and shareholder returns
• Ensure a strong capital base
• Maintain robust funding profile
• Continue to strengthen
portfolio quality
• Shareholder value creation
For further details, please refer
to the Management’s Discussion
and Analysis section on page 118
Human Capital
Our competent workforce
with diverse skill-sets and
valuable experience
• Employee-centric culture based on
the value proposition – Saath Aapka
(which means ‘With You’)
• Continuous skill training and
For further details, please refer to
the write-up on Human Capital on
page 32
Intellectual Capital
Our ability to stay
innovative and develop
products and services
that provide superior
experiences to our
customers
For further details, please refer to
the write-up on Strategic Focus
Areas for Business on page 14
Manufactured Capital
Our network of branches,
ATMs and digital channels
that act as touchpoints for
our customers
For further details, please refer to
the write-up on Strategic Focus
Areas for Business on page 14
Social and
Relationship Capital
Our commitment towards
social empowerment and
a financial ecosystem
accessible to all
For further details, please refer
to the write-up on Social and
Relationship Capital on page 36
Natural Capital
Impact on natural
resources either through
our operations or through
business focus
For further details, please
refer to the write-up on Natural
Capital on page 42
12
capability building
• Employee engagement
• Early adoption of emerging
technologies enabling innovation
• Augmenting existing digital products
• Entering into mutually beneficial
partnerships
• Paperless and environment-friendly
processes
• A combination of physical and
digital channels enabling seamless
service delivery
• Strengthening digital capabilities for
cost efficiency, process efficiency
and enhancing customer experience
• Core and supporting IT systems that
are responsive and scalable
• Providing skill training through ICICI
Foundation for Inclusive Growth
• Increasing penetration of financial
services in rural and unbanked areas
• Empowering rural women
entrepreneurs
• Supporting environment-friendly
projects, subject to appropriate
risk-return assessment
• Efficient energy management in the
Bank’s operations
• Use of renewable energy
• Environment-friendly initiatives
Provide
savings
products
Wealth
creation and
management
Provide credit
to support
consumption
and economic
activities
Facilitate
payments and
transactions
Strategic
investments to
enhance business
capabilities for
long-term value
creation
STRATEGIC FOCUS AREAS
FOR BUSINESS
A customer-centric approach with a
focus on value creation and deeper
relationships
Risk calibrated growth in core
operating profits
Being 'Fair to Customer, Fair to Bank'
Continuous investments in technology,
exploring innovative ideas and
leveraging partnerships to maintain our
leadership
Maintain comfortable levels of capital at
all times
For further details, please refer
to the write-up on Strategic
Focus Areas for Business on
page 14
ANNUAL REPORT 2018-19 GROWTH DRIVERS
Emerging opportunities in the Indian economy
A strong franchise and brand
Continuous enhancements to products and services
Strong risk management and compliance culture
OUTPUTS
Net Interest Income
` 270.15 billion
during fiscal 2019
Fee Income of
` 119.89 billion
during fiscal 2019
Total loans and advances of
` 5.87 trillion
at March 31, 2019
Deposits of
` 6.53 trillion
at March 31, 2019
OPERATING WITHIN
THE GUARDRAILS OF RISKS
Credit
Market
Liquidity
Operational
Information
Technology
Cyber
Legal
Reputation
Compliance
OUTCOMES
• Core operating profit grew by 16.5% in fiscal 2019
• Cost of funds among the lowest across private sector banks
• Net NPA ratio decreased from 4.77% at March 31, 2018 to
2.06% at March 31, 2019
• Provision coverage ratio of 70.6% at March 31, 2019
excluding prudential and technical write-offs
• Capital adequacy ratio of 16.89% at March 31, 2019
• Credit cost as a percentage of average advances to be in the
range of 1.2% to 1.3% in fiscal 2020
• Target of 15.0% consolidated return on equity by June 2020
• Employee base of 86,763 at March 31, 2019
• 7.84 person-days of learning per employee in fiscal 2019
• Organisation architecture de-layered at the senior level
to enhance collaboration across teams and greater
speed-to-execution
• Empowered teams at local level to enable quick
decision making
• Industry first features like 'Money Coach' and 'Discover'
introduced in the mobile banking app, iMobile, leading to
increase in average time spent by customers on the app
• Partnerships with Amazon and MakeMyTrip for credit cards,
leveraging high customer traffic platforms
• Increased end-to-end digital disbursement of credit through
products like 'Insta Home Loan', 'Insta Auto Loan' and
'PayLater'
• Launched savings products for specific customer segments -
'Advantage Women Aura Savings Account' and 'The One'
• Extensive network of branches and ATMs among private
sector banks
• Over 86% of transactions in savings accounts were done
through digital channels in fiscal 2019
• Mobile app, iMobile offers over 250 services and is rated
4.5/5.0 on the Google Play Store
• Improved customer convenience
• ₹ 922.0 million spent under the Bank’s corporate social
responsibility initiatives in fiscal 2019
• Provided loans to 5.2 million women beneficiaries through
440,000 SHGs till March 31, 2019
• Over 400,000 individuals provided vocational training by
ICICI Foundation till March 31, 2019; 54% of the trainees
were women
• Platinum rating to nine offices of the Bank by the Indian
Green Building Council
• 7.2% of total energy consumed is generated from
renewable energy sources
• Consistent reduction in electricity consumption
• Water consumption per day in large offices is 20% lower
than BIS benchmark
13
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS STRATEGIC FOCUS AREAS FOR BUSINESS
ICICI Bank has focussed on being a future-ready
its
organisation and has consistently evolved
capabilities to ensure agility and value creation in
its businesses. This focus is integral to the Bank’s
strategy and underscores the several pioneering
initiatives taken by the Bank
In fiscal 2019, the Bank continued to make progress on
its strategic objectives even as the year saw significant
focussed on
challenges. The Bank’s businesses
growing the core operating profits in a risk calibrated
and granular manner. The Bank implemented a number
of initiatives to expand its customer base and deepen
the penetration of products and services, thus further
strengthening the franchise. The digital strategy was
key to driving the Bank’s reach and unlocking potential
in its businesses. ICICI Bank completed 20 years of
its digital banking journey in fiscal 2019, and aims to
remain at the forefront in re-imagining banking through
technology, digitisation and innovation.
Meeting customer needs
The objective of the Bank is to develop products and
services that create value for customers. Technology
and digitisation play an integral part in meeting this
objective. The Bank focuses on providing high levels of
functionality and investing in technologies to provide
a secure, superior, seamless and uniform service
experience to customers across all channels.
RETAIL BANKING
The retail business was a key driver of growth for the
Bank in fiscal 2019. The retail loan portfolio grew by
21.7% year-on-year at March 31, 2019 to ` 3,528.31
billion. The retail loan portfolio as a proportion of the
total loan portfolio increased from 56.6% at March 31,
2018 to 60.1% at March 31, 2019. Including non-fund
loans
based outstanding, the proportion of retail
was 46.9% at March 31, 2019. Total savings deposits
grew by 13.3% to ` 2,276.71 billion at March 31, 2019.
The Bank continued to see strong growth in its retail
term deposits and maintained a robust funding profile.
14
The Bank’s strategy is focussed on leveraging its branch
network, digital channels, partnerships and presence in
various ecosystems to expand its customer base. The
Bank seeks to offer a comprehensive suite of products
and services to customers. These include savings,
investment, credit and protection products based on
customer needs, along with convenient payment and
transaction banking services. Cross-selling appropriate
products to existing customers based on analytics is
a key element of the Bank’s strategy. The Bank seeks
to adopt a 'Fair to Customer, Fair to Bank' approach
across its business.
Digital initiatives have played a key role in driving
growth and efficiency in the retail business. These
initiatives have improved the efficiency of branches.
The Bank is now able to serve more customers at
its existing branches and has enabled employees
to perform more value-added activities. The Bank
periodically reviews branches based on customer
footfalls and economic activities to ensure optimal
distribution of the branch network. The Bank added
431 insta-banking kiosks during fiscal 2019 taking the
total count to 1,167 at March 31, 2019.
PHYSICAL CHANNELS AT MARCH 31, 2019
4,874
Branches
14,987
ATMs
391,625
POS terminals*
1,167
Insta-banking
kiosks
1,451
Cash acceptance machines
* ICICI Merchant Services Pvt. Ltd.
ANNUAL REPORT 2018-19 With a focus on convenience and value creation, a
number of products and services relevant to customers
were launched during the year. FD Xtra is a bouquet
of fixed/recurring deposit products offering additional
benefits like monthly income, life insurance cover,
systematic investments and credit card. The Bank’s
Seniors Club Savings Account was enhanced during
the year with features like doorstep services and a
special facility called Quantum Optima for earning
higher returns. In another unique offering, the Bank
launched
‘Advantage Woman Aura Savings
Account’, an account exclusively for working women
in India and ‘The One’, a premium savings account
for salaried and self-employed professionals in the
age group of 35-50 years. These products offer a
bouquet of benefits to meet the life-stage needs of the
customers. Other convenience products include digital
issuance and reload of travel cards and a digital e-gift
card called 'Expressions'.
the
The Bank believes there are significant opportunities
to grow the personal loans and credit card portfolio
by mining the existing customer base for cross-sell
and partnerships with
companies.
Partnerships with platforms with large customer bases
and transaction volumes offer unique opportunities
for growth and enhancing service delivery and
customer experience. The Bank entered
into
partnerships with Amazon and MakeMyTrip for issuing
co-branded credit cards during fiscal 2019.
technology
RURAL AND INCLUSIVE BANKING
The Bank believes that a key driver of India’s growth
is the rural economy which has distinct financial
needs. The Bank’s rural banking operation caters to
the complete financial requirements of customers in
rural and semi-urban locations, primarily engaged in
agriculture and agro-related value chain activities.
The Bank’s reach in rural areas is supported by a
network of branches, on-field staff and business
correspondents providing last-mile access in remote
areas. Of the Bank’s network of 4,874 branches,
50.1% were in rural and semi-urban areas with 556
branches in villages that were previously unbanked.
The Bank had over 5,000 customer service points
enabled through the business correspondent network
at March 31, 2019.
financial needs of
The Bank has adopted a societal approach in meeting
the
its rural customers and
offers a bouquet of services and products covering
the end-to-end requirements of rural customers.
15
The Bank’s mobile application, iMobile, is a key
channel of service. It was revamped in fiscal 2019 to
add an array of design-thinking led services along with
intuitive widgets. These services include India’s first
software robotics algorithm-led investment advisory
application on mobile, ‘Money Coach’, which manages
the entire investment journey of a customer. The Bank
has also introduced a first-of-its-kind paperless KYC
and online registration process for mutual funds at a
single click and seamless peer-to-peer fund transfer
to registered payees using voice commands enabled
‘Siri’. Another
by Apple’s virtual voice assistant,
feature that was added is an intuitive interface called
‘Discover’ which enables customers to track personal
spends and deliverables. Other features on iMobile
include setting card limits, checking account balances,
getting instant digital credit up to ` 20,000 and saving
frequently made transactions as ‘Favourites’. As a
security feature, the app allows customers to manage
their credit card limits and block/unblock cards as
needed. iMobile now offers more than 250 services
which are available across all mobile platforms.
The Bank recognises the need to be relevant in its
product and service offerings to meet customer
expectations. Data analytics, artificial intelligence and
machine learning are providing significant opportunities
for making this possible. ICICI Bank leverages these
technological capabilities to design products that meet
specific customer needs. One such need was accessible
and affordable credit which the Bank is addressing
through its instant lending options. Customers are
offered the facility of availing personal loans, business
loans, home loans including top-up and auto loans
entirely on the digital platform. The Bank has digitised
the process end-to-end enabling instant disbursement
to pre-approved customers. The Bank implemented
various initiatives to increase the contribution of digital
channels in its offering of unsecured products.
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS STRATEGIC FOCUS AREAS FOR BUSINESS
SMALL AND MEDIUM ENTERPRISES
factors
(SMEs) require a
Small and medium enterprises
relationship approach depending
comprehensive
on various
including size, supply chain
linkages and leverage capability. The Bank has been
providing tailored products and services for enabling
wide-ranging support and has been partnering SMEs
for their business growth.
current
efficiencies. The
During fiscal 2019, several digital products were
launched for SMEs to meet their business and
transaction banking requirements and add better
operational
account
opening process has been digitised with a seamless
account opening experience at the client's premises.
Instant digitally processed overdraft facility of up to
` 1.5 million is available to the SMEs. Additionally,
the Bank launched business loans based on Goods
and Services Tax returns. The transaction banking
experience has been digitised with enhancements in
‘Trade Online’ and
trade platform
the digital
‘Corporate
Internet Banking’ enabling general
banking transactions and export-import transactions
online without visiting
the branch. The mobile
application, Eazypay, a digital POS for merchants,
facilitates business of SMEs. Further, the Bank is
focussing on harnessing available digital data and
scaling-up digital lending to SMEs.
The Bank follows strong risk management practices in
managing its SME portfolio to enhance the portfolio
quality by reducing concentration risk and to focus
on granular and collateralised-lending based growth.
With a view to increasing the risk adjusted operating
profit from the portfolio, reliance is also placed on
harnessing opportunities across transaction banking,
foreign exchange and personal banking solutions
with the SMEs.
in the country. The
The Bank endeavours to support the ambitions of SMEs
by providing innovative platforms and solutions, that
go beyond banking and finance and nurture the SME
ecosystem
‘Beyond Banking’
platform is a strategic tool that focuses on a slew of
initiatives and forums to give the SME community
exposure to sectoral insights, global best practices,
and media
business
expansion
'SME Empower’
recognition. The digital platform
(B2B)
Business
an
is
to buy and
marketplace
sell products online.
is an online
knowledge resource centre for SMEs.
that enables SMEs
‘SME Toolkit’
opportunities
Business
online
to
The segments include farmers, rural salaried customers,
commodity traders, seed and farm input dealers and
processors. The key focus for the business is to build
banking habits and to help in creating wealth for rural
customers. Apart from direct lending to customers,
the Bank also engages with Micro Finance Institutions
(MFIs) as a crucial delivery channel for reaching out
to the otherwise under-served population and for
enabling financial inclusion. The Bank provides financial
assistance in the form of term loans to MFIs. These
funds are then further extended to individuals and
members of Self Help Groups/Joint Liability Groups.
Digitisation underpins the Bank's efforts in rural banking
in a big way and has helped in decongesting processes
and empowering teams to increase efficiencies in the
delivery of services to rural customers. A unique mobile
application called ‘Mera iMobile’ was launched in fiscal
2017. It allows rural customers to avail more than 135
services including non-banking information and agri-
related advisory on crop prices, news and weather. The
app is available in 11 languages and is used by more
than half a million customers. Till March 31, 2019, the
app had processed a total of 24.1 million financial and
non-financial transactions.
The Bank’s efforts in the rural areas are also meeting
the
larger goals of women empowerment and
development. Some key initiatives in this direction
include the support given to Self Help Groups that
promote
and
development of solutions for dairy farmers.
among women
entrepreneurship
For details on the Bank's
initiatives in rural areas,
refer to page 40
16
ANNUAL REPORT 2018-19 WHOLESALE BANKING
Meeting the needs of Indian corporates has been a
long-standing business focus for the Bank. This is
provided through solutions for credit-related needs like
working capital and term loans, transaction banking
solutions and market-related solutions
like foreign
exchange and derivatives.
Following the significant challenges faced by the Bank
in its corporate portfolio, the Bank put in place specific
measures with a focus on lending to higher-rated,
well-established corporates, enhancing the quality
of
the existing corporate portfolio and reducing
concentration risk. The Bank made significant progress
towards these objectives. The Bank continues to focus
on financing opportunities in the corporate sector
based on appropriate risk assessment and pricing.
In fiscal 2019, the Wholesale Banking Team underwent
a reorganisation with an objective to create flexibility
and enable the Bank to capture all opportunities arising
from existing customers’ ecosystem. A better focus
on the services sector has been enabled through a
dedicated team. Further, a new Portfolio Management
Group has been set up to assist in construction and
management of the wholesale banking portfolio based
on a desired matrix of risks and returns.
The Bank is focussing on meeting the transaction
banking needs of corporate clients, including foreign
exchange and derivatives, trade finance and payments,
and collections. In fiscal 2019, the Bank actively
engaged with a consortium of 10 banks for harnessing
the Blockchain Distributed Ledger Technology platform
in a bid to help digitise inland trade within the country.
The Bank also made domestic letter of credit issuance
and advising modules available to corporates for
handling their inland trade requirements. Around 250
corporates have signed up on the blockchain platform
for domestic and international trade finance. In fiscal
2019, the Bank launched a digital payment solution,
‘e-DOCS’, on its Trade Online platform. This application
leverages
information available on Export Data
Processing and Monitoring System (EDPMS) portal and
aids clients in managing their entire export banking life
cycle digitally. In another digital initiative for corporate
customers, in fiscal 2019, the Bank provided a digital
financial supply chain platform with integrated payment
solutions that helps in streamlining delivery systems
across the entire value chain of corporates. Further to
its initiatives in creating industry ecosystems, the Bank
has partnered with Tea Board in implementing an online
payment solution for buyers and helping other industry
stakeholders including brokers, sellers and warehouses
in managing their funds flow through automated
settlement processes and customised Management
Information System (MIS) reports.
INTERNATIONAL BUSINESS
ICICI Bank’s international footprint consists of branches
in the United States, Singapore, Bahrain, Hong Kong,
Sri Lanka, Dubai International Finance Centre, South
Africa, China, Offshore Banking Unit (OBU) and IFSC
(International Financial Services Centre) Banking Unit (IBU)
and representative offices in the United Arab Emirates,
Bangladesh, Malaysia and Indonesia. The Bank also has
wholly-owned subsidiaries in the United Kingdom and
Canada with branches across both countries. ICICI Bank
UK also has an offshore branch in Germany.
The Bank is repositioning its international franchise to
focus on deposits and remittances from non-resident
Indians. The Bank is also focussed on deepening its
relationships with Indian corporates in international
markets
trade,
transaction banking and lending opportunities, as well
as select risk-calibrated local opportunities.
for maximising
India-linked
the
In
The Bank has been playing a pioneering role in promoting
digital initiatives in the international banking arena. The
Bank has been continuously introducing and innovating
the
to enhance customer experience.
products
remittances space, the Bank introduced various initiatives
like loyalty programme for Money2India offered for
customers in America, customer-get-customer based
'Block-your-rate' functionality on
referral programme,
Money2World and 'Request money' option whereby ICICI
Bank beneficiaries can request remitters to send money
via Money2India. The Bank also enabled blockchain-
based processing for outward remittances from India to
Canada, a first-of-its-kind in the industry. The Bank aims
to replicate the same across other overseas locations.
17
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS follows a 4D
The Bank
the
entire customer journey across products, processes
and channels.
framework
to map
THE 4D FRAMEWORK
Delivery with speed
and accuracy
Decongestion
Digitisation
Delivery with empathy
Some key initiatives taken during fiscal 2019 under the
4D framework include:
1. Auto verification of a significant portion of financial
transactions at branches has been enabled
and the cut-off time for clearance of cheques
has been extended.
2. For services relating to Trade and Remittances,
round-the-clock fulfillment of transactions have
been enabled with a dedicated team to handle
post cut-off transactions. Also, the Trade Online
channel has been re-engineered to offer a best-
in-class customer experience. Customers can now
settle their inward remittance, request Exchange
(EEFC) conversion
Earners Foreign Currency
STRATEGIC FOCUS AREAS FOR BUSINESS
GOVERNMENT BANKING
The Bank’s customers include government institutions,
both central and states and local bodies. The Bank
aims to facilitate the efforts of these institutions by
providing integrated collections and payment solutions,
IT solutions, participating
in pilot projects and
strengthening their efforts in enhancing e-governance.
This also results in deposit balances for the Bank.
For details on the Bank’s role in
supporting government initiatives,
refer to the write-up on Social and
Relationship Capital on page 41
Enhancing customer service
rapidly
changing economic
the Bank makes continuous efforts
Customer service is an important pillar of banking
and
towards
improving customer experience and operational
efficiency. A
and
technological landscape has created new dimensions
in customer expectations from banks. Speed and
convenience are two key drivers in meeting these
expectations. To keep up with evolving customer
expectations, the Bank is increasing its focus on
customer delight and advocacy. This
is being
measured through the Net Promoter Score, Transaction
Experience and Customer Satisfaction metrics.
18
ANNUAL REPORT 2018-19 and submit the imports bill of entry through the
online channel. Also, new trade processing hubs
have been introduced in Delhi and Kolkata for
servicing customised trade transactions. Express
trade processing zones have been opened in
commercial branches of Mumbai and Delhi to
deliver across-the-counter trade finance solutions.
3.
of
clearing
cognitive
Introduction
technique, which extensively uses data analytics,
to improve the time taken in the cheque clearing
process and enhanced due diligence resulting in
stronger process controls.
cheque
4. Customer and channel dashboards were developed
for mortgage
loan
for stage-wise status updates
loans, enabling customers to track their
application on-the-go.
5. The fund transfer user journey for retail customers
using internet banking was revamped leading to
significant reduction in customer effort.
6. Branch processes were reviewed and redesigned,
and critical services were enabled for self-service,
thereby reducing customer effort.
7. During the year, the Bank took
initiatives that
underscored the ethos of ‘Fair to Customer, Fair
to Bank’ by enabling right selling of products
to customers and enhancing
the customer's
trust in the Bank.
CUSTOMER GRIEVANCE REDRESSAL
MECHANISM
The Bank believes and treats its customers fairly and
seeks to provide transparency in its product and service
offerings. The Bank makes continuous efforts to educate
its customers to enable them to make informed choices
regarding banking products and services. The Bank
also ensures that the products offered are based on an
assessment of the customer’s financial needs.
The Bank has a well-defined grievance redressal
mechanism with clear turnaround time for providing
resolution to customers. All complaints received by
the Bank get recorded in a Customer Relationship
Management (CRM) system and tracked for end-to-end
resolution. The Bank also has an escalation matrix
built in the CRM system to ensure that customer
requirements are appropriately addressed within the
stipulated timelines. Further, as recommended by RBI,
the Bank has appointed a senior retired banker as the
Internal Ombudsman of the Bank. The Customer Service
Committee of the Board, the Standing Committee on
Customer Service (Customer Service Council) and the
Branch Level Customer Service Committees monitor
customer service at different levels.
THE BANK HAS IN PLACE THE FOLLOWING POLICIES FOR CUSTOMERS
Customer
Relations Policy
Customer Grievance
Redressal Policy
Customer
Rights Policy
CUSTOMER SERVICE
POLICIES
Cheque
Collection
Policy
Policy on Collection of
Dues and Repossession
of Securities
Customer
Compensation Policy
Deposit Policy
19
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS STRATEGIC FOCUS AREAS FOR BUSINESS
The number of customer complaints of the Bank
(excluding cash discrepancy at non-ICICI Bank
ATMs) reduced by 27.8% in fiscal 2019 as compared
to fiscal 2018.
For details on customer complaints,
refer to page 235
Technology at the core
The Information Technology (IT) Strategy adopted
by the Bank is to provide an integrated, resilient and
responsive technology environment that enables it to
achieve its business goals of risk calibrated granular
growth, cost-effectiveness and a superior customer
experience in a secure and compliant manner. In line
with this strategy, the Bank has adopted the theme
of Run, Transform and Re-Imagine for its digital and
technology initiatives to remain at the forefront of
transformation in the Indian banking industry.
Growth in transaction value in fiscal 2019
Run – Focus on running systems in a reliable and secure
manner and at the same time making incremental
changes to bring in process efficiencies.
Transform – Involve product and process innovation to
become ‘Digital to the Core’ and adopt novel ways of
business operations leveraging technology.
Re-Imagine – Delivering business services and servicing
customer needs in a dramatically different way.
The Bank has a Board-level Information Technology
Strategy Committee, which approves the strategy and
policies for information technology and ensures that the
IT strategy is aligned with the Bank’s business strategy.
the
is overseen by
The Bank has a well-structured process for innovation
which
Innovation Steering
Committee. Key stakeholders include business heads,
product heads and representatives of the human
resources function. The Committee meets regularly
to provide strategic guidance and direction on new
initiatives for effective implementation.
The Bank has a dedicated Business Intelligence and
Analytics team that works across business areas
30%
Credit cards
65%
Mobile banking
21%
Debit cards
Digital leadership
32%
of industry share
making the Bank a
leader in Immediate
Payment Service
(IMPS) transactions
Digital adoption
Over 86%
Savings Account
transactions
are done through
digital channels
20
Leader in the electronic toll collection
market in terms of value and volume
First bank in India to issue more than one
million RFID tags (FASTags)
iPal resolved over 13 million queries
The Bank's AI-powered chatbot resolved over 13 million
customer queries in fiscal 2019. iPal has a smart channelling
feature where the customer is redirected to a live chat agent
when the bot is unable to resolve the query.
ANNUAL REPORT 2018-19
on projects relating to business analytics, decision
strategies,
learning,
forecasting models, machine
rule engines and performance monitoring. The Bank
maintains a comprehensive enterprise-wide data
warehouse and employs best-in-class statistical and
modelling tools for leading edge analytics.
In driving an innovation and start-up mindset, the Bank
has set up a start-up investment and partnerships team
to collaborate with and invest in fintech startups and
co-develop products aligned with the ICICI Group’s
digital roadmap. The engagements with startups are
focussed on digital lending, revenue growth, digital
platforms and improving process efficiency. The Bank
has set aside a corpus for investing in fintech startups.
Till March 31, 2019, the Bank had made investments in
five start-ups.
While the Bank is focussed on growing its own digital
channels, it is also creating an ecosystem through
partnerships which cover all broad segments of
customer and merchant payments. The Bank is offering
a host of APIs (Application Programming Interfaces)
and SDKs (software developer kits) which facilitate
third party apps to offer payment solutions for their
retail customers.
The Bank has pioneered the adoption of software
robotics, with more
than 1,000 software robotic
processes deployed that are handling 20% of the
transactions, thus augmenting operational efficiency,
higher accuracy and reduction in processing time for
customer services.
CYBER SECURITY
introduced in the Bank’s mobile application, iMobile,
wherein a customer can view card-related parameters
and modify them based on one's requirements.
These parameters include changing the card limit,
temporarily blocking the card or selectively blocking
the card for ATM or internet transactions. The Bank
also ran an intensive campaign across different
channels of the media to create customer awareness
on these features. The Bank views cyber threats
as a very important risk and they form part of the
enterprise risk management framework. The Board
level IT Strategy Committee oversees the information
and cyber security related threat landscape and
the Bank’s preparedness to address these from a
prevention and response perspective. Clear policies
have also been put in place with regard to cyber
security and information security which are reviewed
by the senior management on a periodic basis.
The Bank also conducts and participates in cyber
security drills to continuously fine tune its response
mechanisms. The Bank also runs multiple awareness
and internal simulation exercises to ensure high levels
of employee awareness on information security.
r
o m e
n
ti o
c
e
t
t
s
o
C
u
r
p
Prevention
t
n
e
m
e
g
a
n
a
M
t
h
g
i
s
r
e
v
o
a
G
n
o
d
v
e
P
r
r
n
o
a
c
n
e
c
s
e
s
e
s
and
connectivity
to networks
Rapid digitisation of business, increasing transaction
intensity
and
ecosystems have made cyber security increasingly
important. The Bank needs to be prepared for cyber
risk as we become more digital and maintain open
and flexible platforms to encourage partnerships and
innovation. At ICICI Bank, the triad of Confidentiality,
Integrity and Availability (CIA) are at the heart of
its comprehensive information security framework.
With a 360-degree approach to cyber security, the
Bank believes that this is a continuous journey in
line with rapidly evolving digital technologies and
developments in the external risk landscape. The
approach covers all aspects of prevention, detection
and response. The Bank also lays emphasis on
customer elements like protection from phishing,
adaptive authentication, awareness initiatives and
protection and risk configuration ability in the hands
of the customers. In fiscal 2019, a unique feature was
ntiality
I
n
t
e
g
Data
Security
r
i
t
y
e
nfid
o
C
Availability
Technology
D
e
t
e
c
t
i
o
n
Response
21
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
STRATEGIC FOCUS AREAS FOR BUSINESS
Risk calibrated growth
CONCENTRATION RISK MANAGEMENT
(in %)
The Bank is committed to ensuring long-term risk
calibrated growth based on its strategic objectives. The
Bank’s performance in fiscal 2019 was aligned to its
focus on pursuing this strategy based on opportunities
and its risk appetite. The Bank’s core operating profits
(i.e. operating profits excluding treasury income) grew
by 16.5% in fiscal 2019, led by broad-based growth in
domestic businesses. The growth was supported by
strong risk management practices leading to further
reduction in concentration and improvement in the
rating composition of the portfolio. The Bank’s rating
mix of disbursements has changed significantly.
Over 90% of the disbursements in fiscal 2019 in the
domestic and international portfolio were to corporates
rated A- and above.
20.2
15.0
18.5
13.3
16.8
12.4
12.5
14.3
13.6
10.8
March
31, 2015
March
31, 2016
March
31, 2017
March
31, 2018
March
31, 2019
Exposure to top 20
borrowers (excluding banks)
as a % of total exposure
Exposure to top 10 borrower
groups as a % of total
exposure
PORTFOLIO RATING MIX
RATING CATEGORY1,2
AA- and above
A+, A, A-
A- and above
BBB+, BBB, BBB-
BB and below3
Unrated
Total
MARCH 31,
2017
MARCH 31,
2018
MARCH 31,
2019
37.2%
19.0%
56.2%
28.7%
14.6%
0.5%
42.4%
20.1%
62.5%
27.5%
9.4%
0.6%
100.0%
100.0%
45.1%
22.0%
67.1%
28.2%
4.5%
0.2%
100%
Total net advances (D billion)
4,642.32
5,123.95
5,866.47
1. Based on internal ratings
2. For retail loans, ratings have been undertaken at product level
3.
Includes net non-performing loans
For details on the Bank’s financial
performance and medium and
long-term strategy, refer to the
Management’s Discussion and
Analysis on page 118
22
ANNUAL REPORT 2018-19 Key product launches during fiscal 2019
Bouquet of Insta products
In fiscal 2019, ICICI Bank extended its range of instant
products by introducing a slew of offerings across
segments. They are:
Insta Home Loan
This facility enables lakhs of pre-approved
salaried customers of the Bank to avail final
sanction letter digitally and instantly for loans
up to ₹ 10 million for a tenure of up to 30 years
using the Bank’s internet banking facility.
Insta Top Up on Home Loan
Through this first-of-its-kind
initiative, the
Bank helps its existing home loan customers
to get instant top-up of up to ₹ 2 million for a
tenure of up to 10 years.
Insta Auto Loan
The Bank provides its pre-approved customers
with a facility to avail the final sanction
letter of a car loan instantly and digitally
upto ₹ 2 million for a tenure of up to seven
years. This facility offers loan for 100% of the
on-road price of the vehicle.
Insta Two-Wheeler Loan
The Bank offers a facility to millions of its
pre-approved customers
instant
sanctions of loans up to ₹ 0.2 million for a
tenure of up to three years for buying a two
wheeler. Like the Insta Auto Loan, this loan
also covers 100% of the on-road price of the
two-wheeler.
to avail
PayLater
instant digital credit facility enables
This
pre-approved customers to buy small ticket
items immediately in a completely digital
and paperless manner through their mobile
phones. An invite-only facility, PayLater also
instant
allows eligible customers to avail
credit up to ₹ 20,000.
Insta Top Up on Travel Cards
Through this facility, customers can reload
foreign currency to ‘ICICI Bank Travel Card’
instantly. They can also reload the travel cards
of their close relatives including their parents,
children or spouse after linking them to his/
her savings account.
Expressions Gift Card
This card allows customers of the Bank to
create their own e-gift card and send it on
WhatsApp, SMS or email to anyone including
non-ICICI Bank customers in an instant and
seamless manner. Customers can load any
amount ranging from ₹ 500 - ₹ 9,500 onto
their ‘Expressions Gift Card’ through iMobile,
the Bank’s mobile banking application, and
internet banking.
23
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS STRATEGIC FOCUS AREAS FOR BUSINESS
Accounts: Savings and Current
Advantage Woman Aura Savings Account
This is the first ever account exclusively for
working women in India that offers a host
of benefits across categories like banking,
lifestyle, convenience,
tax
investment &
planning, child education and protection.
Credit Cards
In fiscal 2019, ICICI Bank introduced a range of credit
that offer best-in-the-industry rewards and
cards
benefits for customers. They are:
Emeralde Credit Card
for our premium customers
This card
has been curated with experiences and
features
and
lifestyle for senior professionals and self-
employed entrepreneurs.
travel, wellness
across
Amazon Pay ICICI Bank Credit Card
Launched in partnership with ‘Amazon Pay’,
the online payment platform of the global
e-commerce company Amazon, this is the
first card in the country to enable Amazon
Prime members to earn 5% reward points
on shopping on www.amazon.in. Each
reward point is equivalent to a rupee which
customers can redeem on www.amazon.in
from a catalogue of more than 160 million
items available on the website or by paying
merchants who accept Amazon Pay. The
reward points are uncapped and do not expire.
Manchester United Credit Card
into a multi-year
ICICI Bank entered
the
partnership with Manchester United,
iconic English Premier League football club, to
24
The One
This
for
is a premium savings account
upwardly-mobile salaried and self-employed
professionals. This account offers a slew of
benefits for meeting the long-term financial
needs of the customers and their families,
namely asset creation, wealth management,
life-protection and investment.
First-of-its-kind digital application to open
Current Accounts
ICICI Bank launched a first-of-its-kind digital
application
facility on smartphones and
tablets enabling bank officials to open current
accounts of self-employed
individuals and
businesses in just a few hours.
introduce a range of competitive co-branded
credit cards. The Bank also launched co-
branded debit cards
in association with
Manchester United.
launched
the Bank
MakeMyTrip ICICI Bank Credit Card
In partnership with MakeMyTrip, an online
travel company,
two
co-branded credit cards that are tailor made
to suit the aspirations of travel enthusiasts
in
these cards,
customers can accumulate unlimited reward
points and redeem them across their travel
bookings and various partner merchants on
the travel portal.
the country. Through
ANNUAL REPORT 2018-19 Corporate and MSME
Trade Online Platform
ICICI Bank revamped its Trade Online platform
by introducing an array of new digital services
which enable large, medium and small sized
corporates, as well as MSMEs, to undertake
almost all their export-import transactions
online. Additionally,
is the
first digital banking platform to offer quick
and convenient credit of inward remittances
within minutes.
‘Trade Online’
Eazypay
ICICI Bank added an array of industry-first
features to ‘Eazypay’, the country’s first digital
Point-of-Sale (PoS) application. The all new
Eazypay offers a host of services with many
industry-first features including instant and
paperless application for card-swipe machine
and bar code scanning for instant invoicing.
International Banking
GST Business Loan
ICICI Bank launched ‘GST Business Loan’,
a new working capital facility that enables
MSMEs to get overdraft based on the turnover
reported in their Goods and Services Tax
(GST) returns. The facility is available to any
MSME including non-customers of ICICI Bank
for loans upto ₹ 10 million.
Digital Financial Supply Chain for
corporates
Digital Financial Supply Chain (DFSC) platform
is a real-time digital platform that extends
functionalities of ERP across dealers and
suppliers and provides integrated payments
and channel financing to corporates.
First Bank in India to go live on Swift gpi
ICICI Bank became the first bank in India to
go live on SWIFT global payments innovation
(SWIFT gpi) platform
faster
significantly
cross-border payments by
improving
efficiency
for all category of remitters. The service
enables real-time payments tracking across
correspondent banks.
transparency
facilitate
and
to
Better money transfer options for NRIs
ICICI Bank became the first Bank in the country
to allow NRIs to remit money to India through
social media, including WhatsApp and by
email, through Money2India.
FD Xtra
The Bank launched FD Xtra, an innovative range of
fixed and recurring deposits, specially designed to
meet life-stage needs and goals of customers such as
term-insurance, saving for down-payment of home and
car, retirement planning, child education and fulfilling
travel aspirations among others.
the
(Westpac), one of
Online payment solution for Indian
students studying in Australia
ICICI Bank partnered with ‘Westpac Banking
Corporation’
top
banks in Australia, to offer Indian students a
completely online payment solution through
its
for outward
remittances. With this, Indian residents, who
are customers of any bank in India, can initiate
an online remittance to make fee payments to
an Australian university at a fixed exchange
rate from the comfort of their homes anytime.
‘Money2World’ platform
25
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS ICICI BANK’S RISK GOVERNANCE FRAMEWORK
Risk is an integral part of the banking business and
the Bank aims at achieving an appropriate trade-off
between risk and returns
As a financial intermediary, the Bank is exposed to
various risks, primarily credit risk, market risk, liquidity
risk, operational risk, information technology risk, cyber
risk, compliance risk, legal risk and reputation risk.
The Board of Directors of the Bank has oversight of all
risks assumed by the Bank with specific Committees
of the Board constituted to facilitate focussed risk
management. There is adequate representation of
independent directors on each of these Committees.
The Board has framed specific mandates for each of
these Committees. The proceedings and the decisions
taken by these Committees are reported to the Board.
The policies approved by the Board of Directors or
Committees of the Board from time to time constitute
the governing
framework within which business
activities are undertaken. The Bank has put in place
an Enterprise Risk Management and Risk Appetite
Framework that articulates the risk appetite and drills
down the same into a limit framework for various risk
categories. The trends in the portfolio and risks are
reported to the Board Committees periodically.
INDEPENDENT GROUPS FOR MONITORING RISKS IN THE BANK
Several independent groups and sub-groups have been constituted to facilitate evaluation, monitoring and reporting
of risks. These groups function independently of the business groups.
Risk Management
Group
Compliance
Group
Corporate
Legal Group
Internal Audit
Group
Financial Crime
Prevention and
Reputation Risk
Management Group
No business
targets
Unbiased
inputs
Independent reporting
relationship
The Risk Management Group is further organised
into the Credit Risk Management Group, Market Risk
Management Group, Operational Risk Management
Group and Information Security Group.
The Risk Management Group reports to the Risk
Committee of the Board of Directors. The Compliance
Group and the Internal Audit Group report to the
Audit Committee of the Board of Directors. The
Risk Management, Compliance and
Internal Audit
Groups have administrative reporting to the Executive
Director, Corporate Centre.
26
ANNUAL REPORT 2018-19 KEY RISKS IMPACTING THE BANK'S BUSINESS
Macroeconomic uncertainties
RISKS
MITIGANTS
in the
Indian economy could have
Developments
impact on growth and value creation
a material
in
in
the Bank’s business. The Bank’s presence
international markets also exposes it to risks from
global developments. Uncertainties exist due to India’s
high dependence on global crude oil and capital
requirements, evolving policy environment and need
for sustainable job creation.
in
the
The Bank closely monitors developments
It has a dedicated
Indian economy.
global and
team for monitoring and evaluating the impact of
macroeconomic trends. The Bank has an established
Country Risk Management Policy which addresses the
identification, measurement, monitoring and reporting
of country risk. The Bank’s risk team continuously
monitors all sectors as well as corporates within the
sectors and country risks.
Credit
RISKS
The Bank’s core business is lending which exposes
it to various types of credit risks, especially failure in
repayments and increase in non-performing loans.
The Bank’s loan portfolio includes retail loans, loans to
rural and semi-urban customers, to small and medium
enterprises and wholesale loans which are vulnerable
to economic risks. Banks in India are subject to directed
lending requirements that yield low returns. Further
legal and regulatory changes and increasingly stringent
loans and
requirements regarding non-performing
other weak borrowers and provisioning for such loans
could also be a risk.
MITIGANTS
The credit related aspects in the Bank are primarily
governed by the Credit and Recovery Policy approved
by the Board of Directors. The Bank measures, monitors
and manages credit risks at an individual borrower level
and at the portfolio level. In the last few years, the Bank
has strengthened its Enterprise Risk Management and
Risk Appetite framework for managing concentration
risk, including limits/thresholds with respect to single
borrower and group exposure. Limits have been set up
for borrower group based on turnover, track record and
rating of borrowers. The Bank has pursued a strategy of
building a granular and diversified portfolio and lending
to better rated corporates. Introduction of Insolvency
and Bankruptcy Code and Credit Bureaus act as a
deterrent for borrowers to default.
27
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS KEY RISKS IMPACTING THE BANK'S BUSINESS
Market and liquidity
RISKS
MITIGANTS
Movement in interest rates, foreign exchange rates,
credit spreads and equity prices could impact the
Bank’s net interest margin, the value of the trading
portfolio, income from treasury operations and the
quality of the loan portfolio. Banks in India are subject
to statutory liquidity ratio requirement, capital and
liquidity requirements that structurally exposes them
to interest rate risks and liquidity risks. Regulatory
changes relating to interest rates or markets could
create risks. Further, deposits are an important source
of funding which are primarily short-term in nature
and banks face the risk of asset-liability mismatches if
deposits are not rolled over by depositors.
The Investment Policy, Asset Liability Management
Policy and Derivatives Policy, approved by the Board
of Directors, govern the treasury activities and the
associated risks and contain the
limits structure.
The Asset Liability Management Committee which
includes the MD & CEO, wholetime directors and
the Bank’s
senior executives periodically reviews
business profile and
liability
management. Periodic monitoring
is done by the
Market Risk Management Group which recommends
changes in policies, processes and methodologies.
Building a strong liability franchise is a core strategic
focus for the Bank.
impact on asset
its
Operational
RISKS
There is a risk of loss resulting from inadequate or
failed internal processes, people or systems or from
external events. This could include fraud or other
misconduct by employees or outsiders, unauthorised
transactions by employees and third parties, mis-
reporting or non-reporting with respect to statutory,
legal or regulatory reporting and disclosure obligations,
operational errors including clerical and record keeping
and system failures.
MITIGANTS
The Bank has put in place a system of internal controls,
systems and procedures to monitor transactions,
key back-up procedures and undertakes
regular
contingency planning. The governance and framework
for managing operational risks
in the
Operational Risk Management Policy.
is defined
28
ANNUAL REPORT 2018-19 Technology
RISKS
technology, combined with
Rapid technological developments and the increasing
the
dependence on
continuous digitisation
in banking activities have
exposed banks to a host of new risks like obsolescence
of IT systems, IT resiliency and business continuity,
technology vendor/third party risk, incorrect/inadequate
inadequate change management
data backups,
practices, ineffective identity and access management
leading to unauthorised access to IT systems, budget
over-runs in IT projects, regulatory non-compliance and
other relevant matters. Misalignment between business
and IT strategies is also a formidable risk.
Cyber
RISKS
Increasing reliance on technology and digitisation
increases the risks of cyber attacks including computer
viruses, malicious or destructive code, phishing
attacks, denial of service or information, ransomware,
unauthorised data access, attacks on personal emails
of employees, application vulnerability and other
security breaches. This could negatively impact the
confidentiality, integrity or availability of data pertaining
to the Bank and its customers. Given the nature of
the new digital economy, the Bank has business and
operational relationships with third parties and these
could also be sources of information security risk.
MITIGANTS
that
information
technology strategy
The Bank’s Information Technology Strategy Committee
is
ensures
aligned with the business strategy. The Committee
meets periodically to review ongoing IT projects and
their schedules, major IT incidents, technology risk
indicators and status of regulatory compliance. The
Bank has established policies and control frameworks
on change management, logical access management,
IT outsourcing and Data Centre processes to ensure
that the risks are identified and appropriate mitigating
this,
controls are put
independent assessments of IT processes are carried
out by the Internal Audit Group periodically to provide
assurance on the effectiveness and efficiency of IT
systems and processes.
In addition
in place.
to
MITIGANTS
threat
Information Technology Strategy Committee
The
oversees cyber security related
landscape
and the Bank’s preparedness to address these from
a prevention, detection and response perspective.
The Chief Information Security Officer is responsible
for tracking the risks. Confidentiality, Integrity, and
Availability form part of a comprehensive information
security framework that the Bank has put in place. The
Bank also lays emphasis on customer elements and has
invested in the areas of phishing protection, adaptive
authentication, awareness initiatives and has also taken
industry-leading
in providing customers
with an easy and immediate ability to configure their
risks and limits.
initiatives
29
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS KEY RISKS IMPACTING THE BANK'S BUSINESS
Compliance
RISKS
MITIGANTS
The environment for financial institutions is seeing
laws, regulations and
in
unprecedented changes
regulatory policies. This could
increase the risks
of compliance and regulatory action in the form of
fines, restrictions or other sanctions for instances
of regulatory failures. The failure to comply with
applicable regulations by employees, representatives,
agents, third-party service providers either
in or
outside the course of their services, may result
in
regulatory and
investigations by
enforcement authorities either against the Bank, or such
employees, its representatives, agents and third-party
service providers.
inquiries or
The Bank has a dedicated compliance team that
and
continuously monitors new developments
updates the senior management on their implications.
All relevant groups in the Bank build capabilities on
an ongoing basis to be able to respond to regulatory
changes in a time-bound manner. The Bank also
actively participates in forums and advisory groups for
the development of policies in the financial sector. The
Bank seeks to have a strong compliance culture driven
by the leadership team. There are well-articulated
policies with regard to code of conduct, whistleblower
complaints, redressal mechanism for complaints and
engagement with agents and third-party vendors.
Reputation
RISKS
MITIGANTS
including
Any negative publicity arising due
to actual or
lending practices and
alleged conduct
credit exposures, the level of non-performing loans,
corporate governance, regulatory compliance, sharing
or inadequate protection of customer information and
actions taken by the government, regulatory bodies
and investigative agencies could impact the Bank’s
reputation. It can also impact the Bank’s ability to
attract or retain customers and expose it to litigation
and regulatory action.
The Bank has a Reputation Risk Management Group
which identifies, assesses and monitors the risk in
accordance with defined policies and procedures.
Further, the Bank has well-articulated policies on various
aspects including business conduct, employee conduct,
compliance, IT and other relevant identified areas that
could potentially create reputation risks for the Bank.
30
ANNUAL REPORT 2018-19 Employee
RISKS
MITIGANTS
The ability to attract, motivate and retain talented
professionals and the availability of skilled management
is critical for successfully implementing the Bank’s
strategy and competing effectively. The loss of key
senior executives or qualified young professionals and
failure to replace them in a time-bound manner could
impact the business.
The Bank has an employee centric value proposition of
Saath Aapka (which means ‘With You’) that focuses on
learning, meritocracy and care for its employees. The
Bank has put in place robust programmes and policies
that provide opportunities for employees to build
leadership capabilities.
International
RISKS
The Bank has a presence
in multiple overseas
jurisdictions, through its branches and subsidiaries,
which can expose it to a variety of regulatory, legal
and business challenges and increase the complexity
of risks. Enhanced regulations in these countries could
lead to additional scrutiny. There could also be risks
arising from political changes in these jurisdictions.
MITIGANTS
for
international business
The Bank’s strategy
is
largely focussed on India-linked opportunities. There
is a dedicated team overseeing the risks associated
with its branches within the Bank’s Risk Management
Group. Further, specific teams have been set up at local
jurisdictions to get a ground-level understanding of
country specific regulatory and business requirements.
The Compliance Group oversees regulatory compliance
at the overseas branches and banking units.
31
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS HUMAN CAPITAL
Our competent workforce with diverse
skill-sets and valuable experience
Creating a future ready workforce
ICICI Bank’s people practices are designed to cater to
the rapidly evolving business environment. Aligning
organisation structure
to emerging ecosystems,
re-imagining processes, building capabilities and
innovation are at the centre of the Bank’s people
strategy. Ensuring that every employee upholds the
principles of being 'Fair to Customer, Fair to Bank'
underpins the ethos of the Bank.
INDUSTRY-ACADEMIA INITIATIVES
PURSUED BY ICICI BANK
is moving away
to an organisation network aligned
The current economic environment is characterised
by abundant micro-market opportunities to serve
the diverse needs of the customers. The Bank has
reorganised itself to serve these opportunities. The
from defined organisation
Bank
structure
to
ecosystems. This will bring all capabilities of the Bank in
unison, devoid of any functional boundaries which work
together seamlessly. The Bank has transformed itself
from grade-based structure to a role-based structure
at the leadership level to augment nimbleness and
agility. The Bank has also rationalised visible symbols
of hierarchy such as work spaces, access to facilities
and compensation related benefits. The frontline has
been empowered to take decisions in the best interest
of the customers.
The Bank’s strategic focus of growing risk calibrated
core operating profit and market share is bolstered
by re-calibrating the performance architecture. The
individual performance indicators are aligned to the
organisation objective of serving the customer with the
most relevant products and services.
ICICI Business Leadership-NISM
Post Graduate Programme in
Securities Market
ICICI Young Leaders Programme
Programme for Entry-Level
Managerial Roles
ICICI-Manipal PO Programme
Post Graduate Diploma in Banking
IFBI-PGDBO Programme
Post Graduate Programme in
Banking Operations
ICICI Sales Academy
Certificate Course in Sales
Management
The Bank has always believed in the philosophy of
'Building Talent' and has created industry-academia
partnerships
future
ready workforce.
focussed
creating
on
a
32
ANNUAL REPORT 2018-19 ICICI Bank's Innovation Lab in Mumbai
ICICI Bank launched a marquee campus engagement
initiative, 'Beat the Curve', across premier management
institutes to engage with the young minds and
facilitate an exchange of
ideas. The competition
brought together the best minds of India to solve
the challenges of rural India. The winners got the
opportunity to participate in an International Fintech
and Innovation workshop.
At ICICI Bank, learning is integral to work, and various
enabling systems have been institutionalised to provide
opportunities for capability building. These initiatives
span across the employee life cycle, starting from the
time they join the Bank, and at various stages during
the career. The Bank follows a two-pronged approach
wherein classroom training is augmented with digital
delivery of training.
The Bank launched a programme, 'ICICI Bank Ascend’,
the country.
to attract young graduates across
The programme aims at moulding
these young
professionals to take on leadership responsibilities.
To develop capabilities in contemporary fields like data
sciences, design thinking and artificial intelligence,
various academies including functional academies,
have been created.
Branch Banking
Academy
Wealth Management
Academy
Mortgage
Academy
Self Employed
Segment Academy
Technology &
Digital Group
CAPABILITY BUILDING ACADEMIES
Rural & Inclusive
Banking Academy
Design
Thinking
Data
Sciences
Small & Medium
Enterprise and
AgriGroup Academy
Commercial Banking
Academy
Corporate Banking
Academy
Classroom and technology based learning
676,839
No. of person-days
of learning
7.84
Average person-days
1,500
No. of certified internal
trainers
33
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS HUMAN CAPITAL
leadership development
Comprehensive
initiatives
have been curated to groom leaders for the future.
Leadership Development Programmes and Leadership
Engagement Sessions are conducted on regular basis
for all critical roles in the Bank. ICICI Bank also partners
with thought-leaders across the globe to co-design and
build leadership perspectives.
The Bank has a robust succession planning process
which measures the depth of leadership bench at the
Senior Leadership levels. The Bank has a deep bench
for all key positions.
The Bank has leveraged technology and digitally
enabled
its people processes. Digitisation has
enhanced employee experience by automating
the Move
transactional processes. Universe on
(UOTM) is a mobile application designed to serve
various needs of employees and has various business
applications integrated. The app is also enriched
with learning content to enable learning as well as
Zeno, the chatbot, capable of answering dynamic
employee queries.
UNIVERSE-ON-THE-MOVE MOBILE APPLICATION
Apply for leave/view
muster update
View your insurance
policy details under
My Wellness
Check salary details
Access 'The
Learning Matrix'
Talk to Zeno and get
answers
Mark training
attendance via the
QR code
At ICICI Bank, we believe in creating a culture of free
and open conversations. Forums of engagement
have been created where the employees can connect
with the senior leadership of the Bank. 'Engage your
Leader' is a digitally facilitated interaction where
employees can engage and interact with them. These
sessions are conducted over i Studio, an in-house
application which
two-way communication
platform capable of connecting all employees
across different
Leadership
periodically share their business perspective in form
of short videos through 'Huddle'. To establish a deep
locations. Senior
is a
personal, connect with the employees, a dedicated
team of Employee Relations (ER) managers are based
at various locations throughout the country.
The Bank is committed to creating and nurturing
a mutually beneficial and respectful relationship
with its employees. This is governed by the value
proposition of Saath Aapka (which means ‘With
You’), that is based on five key parameters. The Saath
Aapka propositions are at the heart of every policy
decision, and serve as an anchor for every employee
initiative of the Bank.
34
ANNUAL REPORT 2018-19 THE SAATH AAPKA PROPOSITION
Growth & learning
opportunities for
enhancing personal
capabilities
and career
advancement
Creating an
enabling work
culture that
facilitates
achievement of
aspirational goals
Meritocracy
by setting high
performance
standards and
working in a
non-discriminatory
environment
Care for employees
and standing by
them in their hour
of need
Creating a winning
organisation that
is conscious of
its larger role in
society and nation
building
The Bank expects all its employees to act in accordance
with the highest professional and ethical standards
upholding the principles of integrity and compliance at
all times. The Bank’s Group Code of Business Conduct
and Ethics lays down the values and principles and
the standards of professional conduct and desired
behaviour from its employees. The Bank expectations
around compliance are communicated to its employees
through multiple channels.
The Bank is an equal opportunity employer and seeks
to ensure that the workplace is free of any kind of
harassment or inappropriate behaviour. Comprehensive
policies and procedures have been laid down to create an
environment where there is respect and dignity in every
engagement. Sexual harassment cases are handled as
per the guidelines set under the Prevention of Sexual
Harassment at Workplace (Prevention, Prohibition &
Redressal) Act. This is imbibed in the Bank’s culture
by creating awareness through mandatory e-learning
on the subject at the time of induction. The Bank has a
mechanism for dealing with complaints of harassment
or discrimination. The policy ensures that all such
complaints are handled promptly and effectively with
utmost sensitivity and confidentiality, and are resolved
within defined timelines.
For other workplace issues, the Bank has a robust
mechanism to resolve them. 'Call@I-Care' provides
employees with a platform to raise any issues or
concerns that they may have.
In the area of health, wellbeing and safety, the Bank
has a comprehensive suite of benefits. '#BeFit' is
an umbrella programme that offers multiple health
related options for employees
including wearable
fitness devices at discounted rates and participation in
activities such as Yoga and Zumba at work.
To support the life stage needs and safety of women
employees, a range of benefits and policies is available
to them. The Bank provides fertility leave to employees
seeking to undergo treatment. It also provides child
care leave of 36 days annually till the child is two
years old. The Bank is also associated with various
day care facilities across the country. 'iWork@home'
is an initiative that enables women employees to
work from home, if required. The Bank has a Travel
Accompaniment Policy which allows women with
young children to be accompanied by their child and a
caregiver during official travel with the cost borne by
the Bank. 'iTravelSafe', an app developed by the Bank,
provides easy access to register an SOS distress signal.
To support employees during emergencies, the Bank
has set up a Quick Response Team (QRT) to respond
to calls of distress by employees. Each QRT is a GPS
enabled vehicle and carries medical equipment and a
team of trained professions to deal with medical and
safety emergencies.
35
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS SOCIAL AND RELATIONSHIP CAPITAL
Our commitment towards social empowerment
and a financial ecosystem accessible to all
Stakeholder relationships
ICICI Bank recognises the importance of effective
engagement with its key stakeholders for a mutually
beneficial relationship and value creation
the
long run. These relationships are indispensable for
fulfilling business objectives. The Bank aims to have
in
a transparent and ethical relationship with all its
stakeholders and engages with them through multiple
mediums. These engagements have enabled the Bank
to derive insights into the needs of stakeholders and
develop appropriate responses.
ICICI BANK’S KEY STAKEHOLDERS
Mode of engagement
Areas of importance
Bank’s response
• Interaction with
employees
• Convenience
• Responsive, skilled and
• Structured surveys for
considerate staff
• Availability of relevant
products and services
• Quick response to issues
raised through grievance
redressal mechanisms
• Being 'Fair to Customer,
Fair to Bank' is a core element of
the Bank’s approach
• Ensure right-selling of products
• Dedicated customer service team
focussed on improving process
efficiencies and leveraging
technology to improve response
time to customers
• Continuous upskilling and knowledge
building of staff
• Policy of zero tolerance to unethical
conduct by employees
seeking feedback
• Meets organised at
branches
• Communication through
print, digital and social
media
• Multiple channels
available for raising
queries and grievances
• Annual General Meeting
• Periodic meetings
• Conference calls
• Investor conferences
Customers
Shareholders/
Investors
36
• Shareholder value creation
• Medium and
• Increased interaction with investors
during the year
long-term strategy
• Governance and
ethical practices
• Compliance
• Transparency
• Disclosure of non-financial
metrics pertaining to
sustainability
• Non-financial disclosures included
in the Annual Report by adopting the
Integrated Reporting framework
• Communicating on strategic
objectives during the quarterly
results call with investors and
increased disclosures
ANNUAL REPORT 2018-19 Participants attending the 'Dress Designing for
Women' course conducted by ICICI Foundation
at Kharmpur village in Madhya Pradesh
Mode of engagement
Areas of importance
Bank’s response
• Continuous engagement
• Periodic communication
meetings anchored
by senior leaders
• Initiatives like 'Huddle',
'Engage your Leader'
and field visits and
e-visits, by managers
and senior leaders
• 'iCare', an online portal for
employees to raise queries
• Enabling work culture
with opportunities for
growth and learning
• Meritocracy
• Employee alignment
to common
organisation goals
• Saath Aapka (which
means 'With You') value
proposition for employees
• Responsibilities given
early on in career
• Focussed leadership and career
mobility programmes
• Responsive grievance
• Care for employees through leave
handling process
policies and work from home options
catering to their different needs
including life-stage needs.
• Periodic meetings with
• Compliance with rules
• Compliance culture driven by
regulatory bodies
• Participation
in policy forums
• Other forms of
communication like
emails, letters, etc.
• Supervisory meeting
and regulations
• Fair treatment of
customers
• Role in development of the
financial system
• Banks acting as first
line of defence against
financial crimes
senior leadership
• A dedicated team for communicating
with regulators and responding to
them in a time-bound manner
• Well-defined processes and
leveraging technology to improve
response to regulators
• ICICI Foundation for
Inclusive Growth
(ICICI Foundation)
• Corporate social
responsibility
projects of the Bank
• Rural development
initiatives
• Supporting government
initiatives
• Contributing to
• Skill training programmes and
social development
• Financial literacy and
improving access
to financial services
especially in rural areas
efforts at providing sustainable
livelihood opportunities through
ICICI Foundation
• Industry-academia partnerships for
developing skills for the banking
sector
• Awareness drives and disseminating
information through products like
'Mera iMobile' for rural customers
Employees
Regulators
Society
Note: The listing of areas of importance are not as per the order of importance to the stakeholder
37
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS SOCIAL AND RELATIONSHIP CAPITAL
Social initiatives of ICICI Bank
The Bank has a rich legacy of partnering in India’s
socio-economic development. Its focus has been to
create a positive impact on society by undertaking
meaningful interventions to bring significant benefits
to large sections of the society. This has been enabled
through ICICI Foundation for Inclusive Growth (ICICI
Foundation) that has focussed on addressing critical gaps
in the availability of workforce possessing the right skills.
The training also includes modules on financial literacy
and life skills. ICICI Academy for Skills opened two
new centres – one each in Dehradun and Gorakhpur –
during fiscal 2019. A significant achievement of this
programme is that 100% of the trainees who had opted
for job placement had found suitable employment with
various organisations.
RURAL SELF EMPLOYMENT TRAINING
INSTITUTES (RSETIs)
Promoting Inclusive Growth
Promoting inclusive growth has been an overarching
focus of the Bank for many years. The Bank has made
significant contributions especially in the areas of skill
development training and rural development. The Bank
strongly believes that skill training is an important
factor towards securing India’s economic growth. The
skill development training efforts of ICICI Bank largely
target less-privileged youth in rural and urban areas,
helping them to gain employable skills and improve
livelihoods,
into mainstream
economic activities. This initiative is being driven
through ICICI Foundation.
thus bringing
them
ICICI FOUNDATION FOR INCLUSIVE GROWTH
ICICI Foundation was established in 2008 for further
strengthening the efforts of ICICI Group towards meeting
its corporate social responsibility.
ICICI Foundation’s
efforts are managed by an in-house team with direct
project implementation capabilities. The focus on enabling
sustainable livelihoods through skill development training
gained momentum with the setting up of the ICICI
Academy for Skills in October 2013. Currently, ICICI
Foundation works on various programmes on vocational
skill development with
the objective of developing
the capabilities of individuals so that they can earn a
sustainable livelihood for their families. Apart from skill
development, these programmes support the trainees by
facilitating job opportunities or providing market linkages.
ICICI ACADEMY FOR SKILLS
ICICI Foundation operates 26 skill development training
centres under ICICI Academy for Skills in 19 states.
These centres provide industry-relevant, job-oriented
training on a pro bono basis in 12 technical disciplines
and office skills. With a comprehensive approach which
ensures employment opportunities for all successful
trainees, these centres are equipped with state-of-
the-art practical labs to support and enhance learning.
38
ICICI Foundation manages two RSETIs at Udaipur
and Jodhpur with 16 satellite centres in Rajasthan.
These centres train on skills based on the local
requirements.
market
significantly
livelihood opportunities for the trainees
improved
ICICI RSETIs have
through self-employment. The
been recognised as the top performing RSETIs in
India for six consecutive years by the Ministry of
Rural Development and
for
Excellence of RSETIs.
the National Centre
This
has
RURAL INITIATIVES
Apart from providing skill development for youth
focussing on wage employment opportunities, there is
a significant need to improve livelihood opportunities
for rural population so that they can earn a sustainable
OFFICE-IN-CHARGE
AT HYDERABAD
Shirdisha, a resident of Madasuvaripalem in Andhra
Pradesh, was only 24 years old when her husband
passed away. She was devastated. A homemaker from
a less-privileged background, she had no skills or money
to fend for her two young sons and herself.
When Shirdisha joined the 'Office Administration'
course for free at ICICI Academy for Skills, Vijaywada,
she was a shy and reticent person. She had never
operated a computer in her life. Over the next
three months, she became proficient at operating
computers, polished her communication skills and
transformed into a skilled professional.
Today, Shirdisha works as an Office-In-Charge at
Hyderabad and draws a decent monthly salary. She is
confident of giving her sons access to opportunities
that she never had. Young women in her village look
up to her as a role model.
ANNUAL REPORT 2018-19 livelihood in their ecosystem and do not need to
migrate to cities. The rural initiative was specifically
designed for improving the local village economy. Till
March 31, 2019, ICICI Foundation had provided skill
training to local residents in over 1,200 villages.
in
training
that are
the village.
Initiatives of
ICICI Foundation
in
involve
The Rural
providing short-duration skill
locally
relevant trades and facilitating market linkages so
that the trainees are able to sell their produce on a
sustainable basis. The aim is to make efforts in these
villages that can lead to a meaningful increase in the
livelihood of the villagers. An initial study of the local
economy is made in order to understand the economic
strengths and critical gaps
impacting
the productivity
ICICI Foundation
then designs critical interventions with a focus on
improving the productivity and marketability of the
produce in the villages. This is done by providing
practical training on best practices in the local trade
to the villagers. As the trainees get organised and
there is a marketable quantity of a product available
locally,
facilitates market
linkages for the trainees. Through these efforts, it is
seen that better sharing of market information and
direct access to market has resulted in better price
realisation for the villagers. It has also promoted local
entrepreneurship among women.
ICICI Foundation
then
DAIRY FARMER IN LUDHIANA
Dilbagh Singh and his family are residents of a small
village Kular in Ludhiana district. His only source of
income were two cows. With a meagre income of
` 150 per day, Dilbagh was struggling to support his
family of four.
A depressed Dilbagh enrolled in the free 'Dairy
Farming and Vermicomposting' course run by ICICI
Foundation. He has not looked back since then.
Today, Dilbagh runs a sprawling dairy farm with over
25 milch animals. His earnings have grown by leaps
and bounds and his farm stands out as a model in
Kular. Dilbagh has lofty ambitions for the future.
• Winner at
Indian Chamber of Commerce
Social Impact Awards
• Business Excellence and Innovative Best Practices
Academia Award – 2019 by the New Delhi Institute
of Management
• Winner of Gold Category in Foundation Sector by
GreenTech Foundation
The cumulative number of people trained through these
three initiatives crossed 400,000 by March 31, 2019.
Total number of individuals
trained till date
Other activities of ICICI Foundation include organising
blood donation camps and
'Daan Utsav' which
provides a platform to employees and customers to
donate towards charitable causes. ICICI Foundation
like
also undertakes other community
organising awareness drives on hygiene and energy
conservation. During fiscal 2019,
ICICI Foundation
planted over 35,000 native trees across the country
with community ownership.
initiatives
ICICI Foundation was awarded the first prize at the Green
Kaizen Competition conducted by the Confederation
of Indian Industry – Zonal Council Pune for innovative
and frugal inventions by the trainees of ICICI Academy
for Skills. ICICI Foundation was also awarded the CSR
Leadership Award at the Corporate Social Responsibility
Summit and Awards 2018 for innovative implementation
of CSR project at Girwar village in Rajasthan. Other
awards won by the ICICI Foundation include:
• Winner of Innovative Best Practices Award: Gender
Equality Summit 2019
• Silver Award at the Quality Council of India-DL
Shah Quality Award 2018
400,000
% of women trainees
54
No. of villages covered
1,200
No. of states covered
29
Individuals trained in fiscal 2019
135,000
39
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS SOCIAL AND RELATIONSHIP CAPITAL
Rural development
Supporting the rural economy has been a critical focus
of the Bank to create significant dividends for the Indian
economy. With a large population engaged in agricultural
activities in the rural areas, the Bank has been providing
financial solutions for the rural customers. In addition,
there are specific initiatives that are addressing key
segments of the population. The Self Help Group (SHG)
programme is one such initiative through which the Bank
provides a comprehensive suite of banking products,
including zero-balance savings account and term loans
for meeting business requirements of the women of
these SHGs. This has promoted entrepreneurship
among women. The Bank offers services at their
doorstep, thus saving their time and money on visits to
the branch. ICICI Bank is also organising financial literacy
camps and has set up dedicated service desks at select
branches to guide SHGs on banking procedures. There
has been a gradual rise in entrepreneurial ventures by
women in the areas where the Bank has been providing
services to SHGs.
Till March 31, 2019, the Bank has provided loans to
over 5.2 million women beneficiaries through 440,000
SHGs. Of these, over 2.5 million women were ‘first time
borrowers’, who had not taken a loan from any formal
financial institution. In addition to direct customers,
the Bank reaches out to about 0.6 million customers by
lending to Micro Finance Institutions.
SUPPORTING THE DAIRY VALUE CHAIN
s
n
Ter m L o a
Deposits & In
Dairy Ecosystem
v
e
s
t
m
e
n
t
s
Farmer
Village Level
Cooperative
Societies
Dairy Farm
Transporter
l
a
t
i
p
a
C
g
n
i
k
r
o
W
Marketing
Federation
s
n
a
o
Cattle L
Distributor
Consumer
Payment Sol u t i o n s
40
ICICI Bank also provides lending to Joint Liability
Groups (JLGs) which are semi-formal groups from the
weaker sections of society. In addition to direct efforts,
the Bank has tied up with over 500 non-government
organisations called Self Help Promoting Institutions
(SHPIs). These SHPIs are empanelled as business
correspondents and work towards delivering credit and
other banking products. The Bank also offers credit
related services to microfinance companies that are
providing financial services to the rural population.
As part of the financial inclusion efforts of the Bank,
over 21 million Basic Savings Bank Deposit Accounts
(BSBDA) were opened at March 31, 2019. Of these,
around 4.0 million accounts were opened under Pradhan
Mantri Jan Dhan Yojana. The Bank encourages and
enables these account holders to transact digitally. ICICI
Bank is also promoting government schemes like the
Pradhan Mantri Jeevan Jyoti Bima Yojana for providing
life insurance, Pradhan Mantri Suraksha Bima Yojana for
providing accident insurance and Atal Pension Yojana for
providing pension benefits. As at March 31, 2019, a total
of 4.8 million customers had been enrolled under these
three Jan Suraksha Yojana (JSY) schemes.
Meeting the complete financial requirements of customers
and their ecosystem is a strategic focus in the Bank’s rural
business. An example of this approach is the financial
solution provided to farmers and other participants of
the dairy ecosystem. This includes providing a suite of
financial solutions including term loans and working
capital loans to dairy unions, payment solutions and
promoting investments into animal husbandry. These
solutions are supplemented by providing skill training
through ICICI Foundation. The Bank has reached over
21,000 farmers to invest into animal husbandry valued
at ` 1,290.0 million and tied-up with 1,243 number of
Village Level Cooperative Societies (VLCS) with about 0.13
million members.
ICICI Bank has introduced a comprehensive suite of
financial services to promote investments
into animal husbandry, digitise dairy units
and provide payment solutions to enable milk
societies to transfer payments directly into the milk
suppliers’ accounts. This has helped dairy farmers
to manage their working capital needs.
ICICI Foundation supplemented these solutions by
providing skill development training in dairy farming
and vermicomposting. The programme has
successfully powered the dairy ecosystem of some
villages in India.
ANNUAL REPORT 2018-19
SMART CITIES MISSION
initiative of
is an urban development
This
the
Government of India. ICICI Bank is closely associated
with this programme and is working closely with
various 'Smart Cities' for providing digital collection and
payment platforms. ICICI Bank is one the leading banks
for developing Common City Payments Solution (CCPS),
a citizen-centric solution for promoting cashless and
digital transactions of tax payments, parking, utilising
transit services across city buses, metros, supermarket
or retail purchases, toll payment, etc. ICICI Bank has
successfully implemented CCPS at three smart cities.
Other efforts in the Smart Cities Mission are oriented
towards easing the complexities of the Smart City
administration across bill collection of various utilities,
reconciliation and effective monitoring of various
ongoing development projects for live project updates
and just-in-time payments for vendors or contractors,
e-challan collections, smart
toll collections on
highways, smart cash less parking collection solution,
besides other offerings like government to government,
government to citizen and government to business
fund transfer solutions, e-governance solutions and
many more smart solutions leveraging the Bank’s
digital capabilities and expertise. ICICI Bank’s efforts at
some of the Smart Cities Mission are helping scale up
digital transactions and fostering competitiveness and
benchmarking across smart cities.
PUBLIC FINANCIAL MANAGEMENT
SYSTEM (PFMS)
ICICI Bank is one of the leading banks integrated with
the PFMS platform set up by the Office of Controller
General of Accounts (CGA), Department of Expenditure
and Ministry of Finance. The system enables efficient
flow of funds for central government projects. ICICI
Bank supports all three channels of payments, i.e.,
Print Payment Advice, Corporate Internet Banking and
Digital Signature Certificate for account-based and
Aadhaar-based transaction processing. In its capacity
as a sponsor bank to government departments and
implementing agencies,
is processing
payments for more than 40 schemes in 25 states. In
fiscal 2019, the Bank had processed more than 50
million transactions. As a partner bank, ICICI Bank has
also been conducting workshops and providing training
to government departments and agencies for seamless
and quick migration to the PFMS platform. The Bank has
also created a mobile application and setup a dedicated
PFMS helpdesk with e-mail and call support to handle
day-to-day, transaction-related queries.
ICICI Bank
41
Engaging with the government for
delivering value
The Bank has been complementing the efforts of the
central government and the state governments, in
bringing about sustainable changes and supporting
social development. The efforts of the Bank range
from enabling end-to-end digital payment solutions
for critical projects, participating in pilot projects as
a financial service provider, creating IT solutions for
strengthening e-governance and supporting initiatives
for promoting health and education. Some important
engagements are as follows:
CUSTOMISABLE DIGITAL PAYMENTS SYSTEM
This is a customisable digital platform created by the Bank
for State Government departments and Institutions to
enable just-in-time payments to beneficiaries, associated
agencies, contractors or vendors, etc. The solution provides
a wide range of e-Governance modules ranging from
project management, progress tracking & control, budget
management, dashboard, reports/analytics and online
payments and reconciliation of transactions. Currently, we
are associated with five state departments across India.
ELECTRONIC NATIONAL AGRICULTURAL
MARKET (e-NAM)
trading platform
is a unified online
e-NAM
for
agricultural commodities enabling direct engagement
between buyers and sellers. The platform allows real-
time price discovery across 585 agricultural market
centres and is likely to benefit over 15.5 million farmers
and 120,000 registered traders. ICICI Bank has been
actively involved since the inception of e-NAM and has
provided digital payment and settlement solutions.
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS NATURAL CAPITAL
Impact on natural resources either through
our operations or business focus
As a large financial services provider operating in a
developing economy, ensuring prudent use of natural
resources and creating a positive environmental impact
have been important priorities for sustainable value
creation at ICICI Bank. The Bank’s commitment in this
direction spans several years. The impact of our efforts
is visible in the steady reduction in energy consumption
and waste generation, the savings in paper and water
consumption, and the practices adopted by the Bank as
our business and geographical reach grew.
The Bank’s impact on the environment can be gauged
from three standpoints – as a provider of banking
services
impact
of its own operations and the relationship with its
stakeholders including customers and suppliers.
the environment,
impacting
the
Sustainable financing
friendly sectors. This
The Bank has financed projects for capacity creation
in environment
includes
renewable energy sectors like solar, wind and small/
mini hydro power and other sustainable sectors like
waste processing. The Bank’s outstanding to the
renewable energy sectors was about ` 36.00 billion at
March 31, 2019. The Bank has also financed projects
that promote pollution reduction and recycling. Some
of these projects include conversion of molasses to
ethanol, waste heat recovery in cement production
and fly ash recycling. Over and above, the Bank has
availed lines of credit from select multilateral agencies
towards
financing green/sustainable assets. The
assets financed under these lines include financing
for wind, solar, biomass plants and energy efficiency
projects and at March 31, 2019, the outstanding
lending by the Bank for such specific purposes was
USD 139.8 million.
42
The Bank is committed to supporting environment
friendly projects subject to appropriate risk-return
assessment. While the Bank remains cautious in
lending to greenfield projects, it will continue to
participate in opportunities where funding structures
are robust and risks are well assessed. In evaluating
projects, the Bank follows a process which ensures
compliance with national environmental
laws.
Projects are required to obtain requisite clearances
from relevant agencies. The evaluation is carried out
at the time of sanction of the project loan. The Bank
also engages external consultants and engineers
depending on the size and complexity of the project.
sanitation
is dedicated to
education, health,
An internal team within the Bank, the Technology Finance
Group,
identifying and supporting
in the areas of energy and environment
projects
conservation,
and
livelihoods. The team’s mandate is to manage funding
lines received from bilateral/multilateral/government
Its efforts
agencies specifically for such projects.
include identifying relevant projects, ensuring financial
assistance either directly or through collaboration and
knowledge sharing. In the past, the team has supported
energy initiatives like the Kasturba Solar Khadi Mahila
Samiti to meet the operating expenses of a solar
charkha (spinning wheel) cluster and construction of a
green building for the Rural Self Employment Training
Institute in Jodhpur. Key projects in fiscal 2019 included
planting of more than 50,000 trees by 500 tribal
farmers in Palghar, Bhiwandi and Shahapur districts in
Maharasthra, construction of 20 farm ponds in Shirur
taluka of Beed district in Maharashtra, implementation
of a natural resources conservation and livelihood
generation project in 10 villages of Washim district
in Maharashtra, and implementation of a watershed
development and management programme along with
agriculture interventions in three villages of Dharani
taluka of Amaravati district in Maharashtra resulting in
sustainable livelihoods.
ANNUAL REPORT 2018-19 Efficient energy management
The Bank’s business operations are conducted keeping
in mind the environmental limits and ensuring ongoing
efficiency gains. The environment conservation
measures by the Bank are focussed on improving
efficiencies, investing in design and technology and
adopting renewable energy.
IMPROVING EFFICIENCIES
Integrated preventive maintenance (IPM)
24oC temperature policy
• Capacity optimisation
•
•
• Energy audits
• Heat load calculations
• Power factor corrections
• Performance-based contracts
INVESTING IN DESIGN & TECHNOLOGY
• Energy efficient equipment
• Master switch concept
• Equipment based monitoring & control (NOC)
•
Indian Green Building Council (IGBC) defined green
features in new facilities
Internet of Things (IOT) enabled Central Monitoring
System (CMS)
•
ADOPTING RENEWABLE ENERGY
• Solar capacities installed at branches,
offices and ATMs
• Offsite power purchase agreements
• Solar water heating system
The roof-top solar panels at ICICI Bank in
Bommanahalli, Bengaluru
At March 31, 2019, the Bank had
nine offices that were awarded the
Platinum rating by IGBC. These offices
house over 14,500 employees. ICICI
Bank’s data centre is the first IGBC
Platinum rated data centre in India.
In fiscal 2014, the Bank undertook a detailed energy
audit in its 15 large offices and in branches where
than specific
energy consumption was higher
standards. A number of areas were identified for
energy savings which included using energy-efficient
lighting and cooling mechanisms and
increasing
use of renewable energy. The energy conservation
journey of the last five years has led to a skilled pool
of individuals including facility managers of branches
and offices, who are now directly implementing
energy saving initiatives. At March 31, 2019, 156
employees of the Bank were certified Indian Green
Building Council (IGBC) Accredited Professionals.
Since fiscal 2018, the Bank has been ensuring IGBC
green building features in all its new offices and
branches at the time of set up. At March 31, 2019, the
Bank had nine offices that were awarded the Platinum
rating by IGBC, the highest rating given based on an
assessment of energy efficiency, use of renewable
energy, water conservation, waste management,
indoor air quality and sustainable sourcing of material.
ICICI Bank’s data centre is the first IGBC Platinum
rated data centre in India and the first Uptime Tier-3
certified data centre in the Indian banking industry.
43
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS NATURAL CAPITAL
The four main pillars of the Bank’s energy conservation
journey are:
I. PROCESS CONTROLS AND
COMMUNICATION INITIATIVES
It
in operations.
This aims to put in place control systems to ensure
includes policy of
efficiency
temperature control in occupied workplaces, setting
up control systems at specific locations for operating
at optimal energy efficiency, promoting communication
practices (like video conferencing and i Studio) to
reduce employee travel and spreading awareness
through emails and rewards among employees.
II. RETROFIT OF VARIOUS EQUIPMENT WHICH HAS
REDUCED POWER CONSUMPTION AND
ENHANCED EFFICIENCY
The Bank’s offices and branches were refurbished to
include energy-efficient fittings. This included energy
efficient water/air cooled AC chillers, energy-efficient
motors/pumps in hydro pneumatic systems, variable
frequency drives for Air Handling Units (AHU) & pumps,
energy-efficient UPS, stabilisers,
laptops, desktops
and diesel generator sets, lux/occupancy sensors and
timer based controls and spectrally reflective films for
glazing in windows. In fiscal 2014, the Bank converted
all conventional fluorescent lights into LED lights at all
its offices and branches which has resulted in a 50.0%
reduction in energy consumption of lighting load. In
fiscal 2019, the Bank began implementation of installing
LED in signages at its branches.
III. INVESTING IN NEW TECHNOLOGIES WHICH
ARE ENERGY EFFICIENT
The Bank's two large offices - the corporate office at
Bandra-Kurla Complex, Mumbai and Gachibowli Tower
in Hyderabad use Cooling Technology Institute (CTI)
approved cooling towers which have led to 30% more
energy-efficient cooling in these buildings. The Bank
continuously invests in new energy efficient technologies;
for example, new technologies in air-conditioning systems
like Variable Refrigerant Flow (VRF), variable speed
drive chillers, Electronically Commutated (EC) blower
in air handling units and demand controlled ventilation
systems have been installed across the Bank’s offices and
branches. The Bank has deployed an equipment-based
monitoring and control system for Heating, Ventilation
and Air Conditioning (HVAC) systems with centralised
Network Operating Centre (NOC) for seven large offices
and two data centres. This is a first of its kind initiative in
the banking sector, which has helped the Bank to measure
and benchmark energy performance effectively.
44
IV. USE OF RENEWABLE ENERGY
The Bank ensures use of renewable energy at its
premises wherever feasible. At March 31, 2019, the
total solar power capacity installed by the Bank at its
premises was 1.1 MWp (Mega Watt peak). The Bank has
installed smaller capacity solar power at 510 Gramin
branches and 200 ATMs.
Under the open access mechanism for power sourcing,
the Bank has signed Power Purchase Agreements
(PPA) for solar and wind energy purchase for three of
its large offices. The total contracted capacity is 9.0
MWp. These offices have been using renewable energy
since fiscal 2016 and 60% of the energy requirement
at these offices is met through renewable energy. The
Bank is in the process of installing a 1MWp on-site
RENEWABLE ENERGY USED
1.1 MWp
Total onsite renewable energy
capacity at March 31, 2019
9 MWp
Total off-site renewable energy
capacity through power
purchase mechanism
12.07 million kWh
Total renewable energy consumed in
fiscal 2019
CO2 EMISSIONS SAVED
9,895 tonnes
CO2 emissions avoided due to clean
energy usage in fiscal 2019
4,900 tonnes
CO2 emissions saved through energy
conservation projects in fiscal 2019
14,795 tonnes
Total CO2 emissions saved in fiscal 2019
ANNUAL REPORT 2018-19
The total renewable energy
utilisation by the Bank in
fiscal 2019 was 12.07 million
kWh, 7.2% of overall energy
consumption
2.25 million square feet
of the Bank's premises
are green certified by
IGBC
solar power capacity at the Bank’s Disaster Recovery
Centre in Jaipur.
These initiatives have led to an overall reduction
in energy consumption and Green House Gas
(GHG) Emissions.
The Bank’s electricity consumption has decreased and
electricity expenses have remained stable in the last
five financial years despite an increase in branches,
offices and employee strength, and rise in electricity
tariffs and diesel prices.
fiscal 2015
The Bank’s per unit energy consumption has seen
a significant decrease between
to
fiscal 2019. EPI (i.e. Energy Performance Index =
annual energy consumption at facility in kWh/area
large offices
of facility
reduced by 23% and EPM
(Energy Performance
Metric = monthly energy consumption in kWh/area in
square feet) for branches reduced by 34% over
the last four financial years.
in square meter) for the
ELECTRICITY CONSUMPTION (in million kWh)
TOTAL SCOPE 1 & 2 GHG EMISSIONS
(in tonnes CO2 equivalent)
Fiscal 2015
Fiscal 2016
Fiscal 2017
Fiscal 2018
Fiscal 2019
192.13
181.28
180.80
173.22
166.50
Fiscal 2017
1,330
41,983
Fiscal 2019
1,303
41,266
43,313
42,569
Scope 1 GHG
emissions
Scope 2 GHG
emissions
45
INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS NATURAL CAPITAL
The Bank’s Scope 1 and Scope 2 GHG emissions for 16
large offices and two data centres are given below.
Waste management
Water conservation
Water consumption per day in the 16 large offices of
the Bank was 20.0% lower than the benchmark of 45
litres per person per day as per the Bureau of Indian
Standards for large offices. The Bank has undertaken
various initiatives to conserve water. The Bank recycles
and reuses waste water at three large offices including
the head office at Bandra Kurla Complex, Mumbai.
Water-efficient plumbing fixtures have been installed
in all large offices and new branches of the Bank. Rain
water harvesting is undertaken at three large offices.
Paper: from savings to paperless
Adoption of sustainable banking practices has been
an ongoing effort for the Bank. This is achieved by
encouraging customers to go digital in their banking
activities and offering financial products and services
that are digitally processed end-to-end. Most of the
Bank’s ATMs are today paperless. Credit decisioning
is now done on the basis of e-dedupes and several
letters and advices have been made paperless. Loans,
including large-ticket loans like home loans, are being
processed on digital platform, thus reducing the need
for paper. The Bank pioneered the use of tablets
for account opening in India. In another pioneering
initiative, the Bank harnessed blockchain technology
to enable automation of inter-bank processes for trade
finance and remittances which has not only reduced
transaction costs and processing time, but also
resulted in paper savings at an industry level.
In fiscal 2019, the Bank’s consumption of A4 paper
declined by about 24 million sheets. The Bank’s
consumption of A4 paper was 14.9% lower compared
to fiscal 2018 and 34.5% lower compared to fiscal
2017. This was made possible through restrictions
on usage and rationalisation of various application
forms as part of the green banking initiatives. The total
savings in paper in fiscal 2019 was equivalent to 3,400
trees saved. The Bank procures environment-friendly
copier paper which is manufactured from wheat straw,
which is an agricultural residue.
46
The Bank has been focussing on waste reduction and
its management in every aspect of its operations.
As a financial services company, waste generation
is primarily classified as wet waste, dry waste which
is mostly paper and e-waste arising from discarded
electrical and electronic devices.
Recycling of organic waste using composting
technique is being undertaken at the Bank’s offices
in Mumbai at Bandra-Kurla Complex and Chandivali,
and at the learning centre in Khandala.
E-waste is disposed by handing over to certified
recyclers. Reuse of electronic devices is also an
important focus area. The Bank uses re-manufactured
toners in printers which are recycled at least 2-3
times. The Bank also recycles its IT assets which
are subsequently donated. In fiscal 2019, a total of
1,002 assets were donated. A large number of these
donations were made to educational institutes.
Certifications
The Bank has adopted corporate objectives
for
environment-conservation activities in conformity with
the ISO-14001 standard 'International Organisation
for Standardisation' for environmental management
systems. This enables the Bank in developing policies
the objectives of environmental
for addressing
the
sustainability and assessment of
impact of
Bank’s activities, products and services on
the
environment. Health and safety systems at 13 large
offices of the Bank have been OHSAS 18001:2007
certified. The environment management systems of
the corporate headquarters at Bandra-Kurla Complex
in Mumbai are both OHSAS 18001:2007 and ISO
14001:2004 certified. The corporate headquarters
has been successfully re-audited for ISO 14001:2015
compliance in April 2018.
As a recognition of the Bank's contribution towards
maintaining ecological balance, ICICI Bank’s Corporate
office in Bandra-Kurla Complex, its registered office
in Vadodara, its state-of-the-art data centre as well as
one of its branches in Hyderabad have been awarded
a 'Platinum' rating by IGBC. The data centre was the
country’s first data centre to be awarded ‘Platinum’
by IGBC. Gachibowli Tower in Hyderabad has been
awarded ‘Gold’ rating in Core & Shell category. The
office in Bandra-Kurla Complex has been declared
as a ‘National Energy Leader’ in the office building
category by CII in fiscal 2019.
ANNUAL REPORT 2018-19
DIRECTORS’ REPORT
Your Directors have pleasure in presenting the Twenty-Fifth Annual Report of ICICI Bank Limited (ICICI Bank/the Bank)
along with the audited financial statements for the year ended March 31, 2019.
FINANCIAL HIGHLIGHTS
The financial performance for fiscal 2019 is summarised in the following table:
` in billion, except percentages
Net interest income and other income
Operating expenses
Core operating profit
Treasury income
Operating profit
Provisions & contingencies (excluding tax)
Profit before tax
Profit after tax
` in billion, except percentages
Consolidated profit before tax and minority interest
Consolidated profit after tax and minority interest
Fiscal 2018 Fiscal 2019 % change
2.7%
15.2%
16.5%
(76.5)%
(5.3)%
13.6%
(49.2)%
(50.4)%
415.27
180.89
220.72
13.66
234.38
196.61
37.77
33.63
404.45
157.04
189.39
58.02
247.41
173.07
74.34
67.77
Fiscal 2018 Fiscal 2019 % change
(32.5)%
(44.8)%
109.78
77.12
74.08
42.54
APPROPRIATIONS
The profit after tax of the Bank for fiscal 2019 is ` 33.63 billion after provisions and contingencies of ` 196.61 billion,
provision for taxes of ` 4.14 billion and all expenses. The accumulated profit is ` 218.58 billion, taking into account
the balance of ` 179.70 billion brought forward from the previous year and credit of ` 5.25 billion in balance in profit
and loss account towards reversal of provision for frauds on non-retail accounts created in earlier years through
accumulated profits. Your Bank has a consistent dividend payment history. Your Bank’s dividend policy is based on the
profitability and key financial metrics, capital position and requirements and the regulations pertaining to the payment
of dividend. In line with the above, your Directors have recommended a dividend of ` 1.00 per equity share for the year
ended March 31, 2019 and have appropriated the disposable profit as follows:
` in billion
To Statutory Reserve, making in all ` 237.38 billion
To Special Reserve created and maintained in terms of Section 36(1) (viii) of the Income Tax
Act, 1961, making in all ` 95.04 billion
To Capital Reserve, making in all ` 128.54 billion1
To Capital Redemption Reserve, making in all ` 3.50 billion2 (amount appropriated from
surplus profit available for previous years)
To Investment Fluctuation Reserve, making in all ` 12.69 billion3
To Revenue and other reserves, making in all ` 40.28 billion4
Dividend paid during the year
– On equity shares, during fiscal 2019 @ ` 1.50 per share of face value ` 2.00 each (during
fiscal 2018 @ ` 2.50 per share)
– On preference shares2, during fiscal 2019 @ 100.00 per preference shares (`) (during fiscal
2018 @ ` 100.00 per share)
Fiscal 2018 Fiscal 2019
8.41
16.94
6.00
25.66
-
-
7.01
5.25
0.28
3.50
12.69
0.01
14.57
9.65
35,000
35,000
– Corporate dividend tax
Leaving balance to be carried forward to the next year
1 Fiscal 2018 includes transfer of ` 24.90 billion on account of sale of part of equity investment in the Bank’s insurance subsidiary.
2
Redeemable Non-Cumulative Preference Shares (350 RNCPS) of ` 10.0 million each were redeemed at par on April 20, 2018. Accordingly,
an equivalent amount was transferred to Capital Redemption Reserve from surplus profit available for previous years.
Represents an amount transferred to Investment Fluctuation Reserve (IFR) from disposable profit. As per the RBI guidelines, from the year
ended March 31, 2019, an amount not less than the lower of net profit on sale of available-for-sale (AFS) and held-to-maturity (HFT) category
investments during the year or net profit for the year less mandatory appropriations is required to be transferred to IFR, until the amount of IFR is
at least 2% of the HFT and AFS portfolio.
Includes transfer of ` 7.6 million to Reserve Fund for fiscal 2019 (` 10.6 million for fiscal 2018) in accordance with regulations applicable to
the Sri Lanka branch.
-
178.79
0.09
179.70
3
4
47
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS its
financial statements
The Bank prepares
in
accordance with the applicable accounting standards,
RBI guidelines and other applicable laws/regulations.
RBI, under its risk-based supervision exercise, carries
out the risk assessment of the Bank on an annual
basis. This assessment
initiated subsequent to
is
the finalisation, completion of audit and publication
of audited financial statements for a financial year
and typically occurs a few months after the financial
year-end. As a part of this assessment, RBI separately
reviews asset classification and provisioning of
credit facilities given by the Bank to its borrowers.
The divergences, if any, in classification or provisioning
arising out of the supervisory process are given effect to
in the financial statements in subsequent periods after
conclusion of the exercise.
terms of
//DBR.BP.BC.No.
the RBI circular no.
In
32/21.04.018/ 2018-19 dated April 1, 2019, banks
are required to disclose the divergences
in asset
classification and provisioning consequent to RBI’s
annual supervisory process in their notes to accounts
to the financial statements, wherever either (a) the
additional provisioning
requirements assessed by
RBI exceed 10% of the reported net profits before
provisions and contingencies or (b) the additional gross
non-performing assets (NPAs) identified by RBI exceed
15% of the published incremental gross NPAs for the
reference period, or both. Based on the condition
mentioned in RBI circular, no disclosure on divergence in
asset classification and provisioning for NPAs is required
with respect to RBI’s supervisory process for fiscal 2018.
SHARE CAPITAL
During the year under review, the Bank allotted 18,248,877
equity shares of ` 2.00 each pursuant to exercise of stock
options under the Employee Stock Option Scheme.
For details refer to Schedule 1 of the financial statements.
PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS
Pursuant to Section 186(11) of the Companies Act, 2013,
the provisions of Section 186 of the Companies Act, 2013,
except sub-section (1), do not apply to a loan made,
guarantee given or security provided by a banking company
in the ordinary course of business. The particulars of
investments made by the Bank are disclosed in Schedule 8
of the financial statements as per the applicable provisions
of the Banking Regulation Act, 1949.
SUBSIDIARY, ASSOCIATE AND JOINT
VENTURE COMPANIES
There is no change in the subsidiaries of the Bank
during fiscal 2019. The definition of the subsidiary
company and associate company under the Companies
Act, 2013 was changed during fiscal 2019. One of the
48
criterion for identification of a subsidiary company or
an associate company was changed from percentage
holding in total share capital of the investee company
to percentage voting power in the investee company.
Pursuant to the changes in the definition of subsidiary
company and associate company, Shree Renuka Sugars
Limited and National Investment and Infrastructure Fund
Limited ceased to be associate companies of the Bank.
Further, Arteria Technologies Private Limited became
an associate company of the Bank during fiscal 2019.
The particulars of subsidiary and associate companies as
on March 31, 2019 have been included in Form MGT-9
which is annexed to this Report.
HIGHLIGHTS OF PERFORMANCE OF
SUBSIDIARIES, ASSOCIATES AND JOINT
VENTURE COMPANIES AND THEIR
CONTRIBUTION TO THE OVERALL
PERFORMANCE OF THE COMPANY
The performance of subsidiaries and associates and their
contribution to the overall performance of the Bank as
on March 31, 2019 is given in “Consolidated Financial
Statements of ICICI Bank Limited – Schedule 18 - Note 13 –
Additional
information to consolidated accounts” of
this Annual Report. A summary of key financials of
the Bank’s subsidiaries is also given in “Statement
Pursuant to Section 129 of Companies Act, 2013” of
this Annual Report.
The highlights of the performance of key subsidiaries
are given as a part of Management’s Discussion &
Analysis under the section “Consolidated financials as
per Indian GAAP”.
available on
the Bank’s website
The Bank will make available separate audited
financial statements of
to any
the subsidiaries
request. These documents/details
Member upon
at
will be
https://www.icicibank.com/aboutus/annual.html
and
will also be available for inspection by any Member or
trustee of the holder of any debentures of the Bank at its
Registered Office and Corporate Office. 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 Annual Report
incorporate the accounts of its subsidiaries and other
consolidating entities.
SIGNIFICANT AND MATERIAL ORDERS
PASSED BY THE REGULATORS OR COURTS
OR TRIBUNALS IMPACTING THE GOING
CONCERN STATUS OF THE COMPANY AND
ITS FUTURE OPERATIONS
There are no significant and/or material orders passed by
the regulators or courts or tribunals impacting the going
concern status or future operations of the Bank.
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS MATERIAL CHANGES AND COMMITMENT
AFFECTING FINANCIAL POSITION OF
THE BANK
There are no material changes and commitments,
affecting the financial position of the Bank which have
occurred between the end of the financial year of the
Bank to which the financial statements relate and the date
of this Report.
DIRECTORS AND OTHER KEY MANAGERIAL
PERSONNEL
Changes in the composition of the Board of Directors
and other Key Managerial Personnel
Since the date of the last Directors’ Report, the Board
approved the appointments of Hari L. Mundra, Rama
Bijapurkar, B. Sriram and Subramanian Madhavan as
additional Directors for a period of five years from the
date of their appointment. All the above four Directors
hold office upto the date of the forthcoming Annual
General Meeting (AGM) and are eligible for appointment.
Their appointments are being proposed in the Notice of
the forthcoming AGM through item nos. 6, 7, 8 and 9.
The Members at the last AGM held on September 12,
2018 approved the appointments of Radhakrishnan Nair
and M. D. Mallya as independent Directors.
the
the Members at
Further,
last AGM held on
September 12, 2018 approved the appointment of
Sandeep Bakhshi as a Wholetime Director and Chief
Operating Officer. The Board at
its Meeting held
on October 4, 2018 appointed Sandeep Bakhshi as
Managing Director & Chief Executive Officer for a period
of five years until October 3, 2023, subject to regulatory
approvals. Reserve Bank of India (RBI) has vide its letter
dated October 15, 2018, approved the appointment
for a period of three years effective October 15, 2018.
Approval of the Members is being sought for Sandeep
Bakhshi’s appointment as Managing Director and Chief
Executive Officer for five years in the Notice of the
forthcoming AGM through item no.10.
The Board of Directors at its Meeting held on October 4,
2018 accepted the request of Chanda Kochhar to seek
early retirement from the Bank with immediate effect.
However, the Board at its meeting held on January 30,
2019 reconsidered her separation from the Bank and
regarded the same as ‘Termination for Cause’, having
effect from the close of business hours of the Board
i.e. January 30, 2019 after considering
Meeting
the Enquiry Report of Hon’ble Mr. Justice (Retd.)
B.N. Srikrishna.
Lok Ranjan, Joint Secretary, Department of Financial
Services, Ministry of Finance was nominated by
Government of India as a Government Nominee Director
on the Board of the Bank in place of Amit Agrawal, with
effect from April 5, 2018.
Lalit Kumar Chandel, Economic Adviser, Department
of Financial Services, Ministry of Finance has been
nominated by Government of India as a Government
Nominee Director on the Board of the Bank in place of
Lok Ranjan, with effect from December 4, 2018.
The Board of Directors on May 6, 2019 approved the
appointment of Sandeep Batra as an Additional Director
and Wholetime Director
(designated as Executive
Director) for a period of five years effective May 7,
2019 or the date of approval of his appointment by RBI,
whichever is later. The said appointment is also subject
to the approval of Members. Approval of the Members
is being sought for Sandeep Batra’s appointment for five
years in the Notice of the forthcoming Annual General
Meeting through item nos. 11 and 12.
Vijay Chandok ceased to be a Director of the Bank at
the end of day on May 6, 2019 and assumes office as
Managing Director & CEO of ICICI Securities Limited with
effect from May 7, 2019.
Pursuant to completion of maximum permissible tenure
of eight years as per the provisions of the Banking
Regulation Act, 1949, Tushaar Shah,
independent
Director, ceased to be a Director on the Board of the
Bank effective close of business hours on May 2, 2018.
Pursuant to the internal movement, N. S. Kannan ceased
to be a Director of the Bank effective close of business
hours on June 18, 2018. M. K. Sharma ceased to be a
non-executive Director and part-time Chairman of the
Bank effective close of business hours on June 30, 2018
consequent to the completion of his tenure of three
years as approved by the RBI. M. D. Mallya, Independent
Director, tendered his resignation due to health reasons
and ceased to be a Director effective October 4, 2018
and the same was accepted by the Board. Pursuant to
completion of their primary tenure under the Companies
Act, 2013, Dileep Choksi and V. K. Sharma, independent
Directors ceased to be Directors on the Board of the Bank
effective April 1, 2019.
The Board acknowledges the valuable contribution and
guidance provided by the above Directors.
The Board of Directors at its Meeting held on July 27, 2018
appointed Ranganath Athreya as the Company Secretary
and Compliance Officer of the Bank effective July 28,
2018. The Board in the same Meeting noted the cessation
of P. Sanker, as the Company Secretary and Compliance
Officer of the Bank effective close of business hours
on July 27, 2018.
49
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS Declaration of Independence
All independent Directors have given declarations that
they meet the criteria of independence as laid down
under Section 149 of the Companies Act, 2013 as
amended (the Act) and Regulation 16 of the Securities
and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, (SEBI Listing
Regulations) which have been relied on by the Bank and
were placed at the Board Meeting held on May 6, 2019. In
the opinion of the Board, the independent Directors fulfil
the conditions specified in the Act and the SEBI Listing
Regulations and are independent of the Management.
Retirement by rotation
In terms of Section 152 of the Companies Act, 2013,
Anup Bagchi would retire by rotation at the forthcoming
AGM and is eligible for re-appointment. Anup Bagchi has
offered himself for re-appointment.
the Members approved
the Annual General Meeting
AUDITORS
Statutory Auditors
At
(AGM) held on
the
September 12, 2018,
appointment of M/s Walker Chandiok & Co LLP, Chartered
Accountants, as statutory auditors to hold office from
the conclusion of the Twenty-Fourth AGM till the
conclusion of the Twenty-Fifth AGM. As per the Reserve
Bank of India (RBI) guidelines, the statutory auditors of
the banking companies are allowed to continue for a
period of four years, subject to fulfilling the prescribed
eligibility norms. Accordingly, M/s Walker Chandiok &
Co LLP, Chartered Accountants, would be eligible for
re-appointment at the conclusion of the forthcoming
AGM. As recommended by the Audit Committee,
the Board has proposed the re-appointment of M/s
Walker Chandiok & Co LLP, Chartered Accountants, as
statutory auditors for the year ending March 31, 2020
(fiscal 2020). M/s Walker Chandiok & Co LLP, Chartered
Accountants, will hold office from the conclusion of the
forthcoming AGM till the conclusion of the Twenty-Sixth
AGM, subject to the approval of Members of the Bank,
RBI and other regulatory approvals as may be necessary
or required. The re-appointment of
the statutory
auditors is proposed to the Members in the Notice of
the forthcoming AGM through item no. 4.
There are no qualifications, reservation or adverse
remarks made by the statutory auditors in the audit report.
Secretarial Auditors
The Board appointed M/s. Parikh Parekh & Associates,
a firm of Company Secretaries in Practice to undertake
the Secretarial Audit of the Bank for fiscal 2019.
The Secretarial Audit Report is annexed herewith as
Annexure A. There are no qualifications, reservation or
adverse remark or disclaimer made by the auditor in
50
the report save and except disclaimer made by them in
discharge of their professional obligation.
Maintenance of Cost Records
Being a Banking Company, the Bank is not required
the
to maintain cost
records as specified by
Central Government under Section 148(1) of
the
Companies Act, 2013.
Reporting of Frauds by Auditors
During the year under review, there were no instances
of fraud reported by the statutory auditors, branch
auditors and secretarial auditor under Section 143(12) of
the Companies Act, 2013 to the Audit Committee or the
Board of Directors.
PERSONNEL
The statement containing particulars of employees as
required under Section 197(12) of the Companies Act,
2013 read with Rule 5(2) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014
is given in an Annexure and forms part of this report.
In terms of Section 136(1) of the Companies Act, 2013,
the annual report and the financial statements are being
sent to the Members excluding the aforesaid Annexure.
The Annexure is available for inspection at the Registered
office of the Bank. Any Member interested in obtaining
a copy of the Annexure may write to the Company
Secretary of the Bank.
INTERNAL CONTROL AND ITS ADEQUACY
The Bank has adequate internal controls and processes in
place with respect to its financial statements which provide
reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements.
These controls and processes are driven through various
policies, procedures and certifications. The processes
and controls are reviewed periodically. The Bank has a
mechanism of testing the controls at regular intervals for
their design and operating effectiveness to ascertain the
reliability and authenticity of financial information.
DISCLOSURE UNDER FOREIGN EXCHANGE
MANAGEMENT ACT, 1999
The Bank has obtained a certificate from its statutory
in compliance with the Foreign
auditors that
Exchange Management Act, 1999 provisions with respect
to investments made in its consolidated subsidiaries and
associates during fiscal 2019.
is
it
RELATED PARTY TRANSACTIONS
The Bank undertakes various
transactions with
related parties in the ordinary course of business.
The Bank has a Board approved policy on Related Party
Transactions, which has been disclosed on the website
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS the Bank at
of
(https://www.icicibank.com/aboutus/
other-policies.page?#toptitle). The Bank also has a Board
approved Group Arm’s Length Policy which requires
transactions with the group companies to be at arm’s
length. The transactions between the Bank and its related
parties, during the year ended March 31, 2019, were
in the ordinary course of business and based on the
principles of arm’s length. The details of material related
party transactions at an aggregate level for the year
ended March 31, 2019 are given in Annexure B.
ANNUAL RETURN
The extract of Annual Return in Form No. MGT 9 is annexed
herewith as Annexure C. The Annual Return in Form
No. MGT 7 will be hosted on the website of the Bank at
https://www.icicibank.com/aboutus/annual.html.
BUSINESS RESPONSIBILITY REPORTING
The Business Responsibility Report as stipulated under
Regulation 34 of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 will be hosted on the website of the
Bank at https://www.icicibank.com/aboutus/annual.html.
Any Member interested in obtaining a physical copy of the
same may write to the Company Secretary of the Bank.
Integrated Reporting Framework
INTEGRATED REPORTING
The Bank has sought to adopt the principles of the
International
as
developed by the International Integrated Reporting
Council (IIRC) in its Annual Report for fiscal 2019.
For accessing the Integrated Report, please refer to the
Annual Report 2018-2019 hosted on the website of the
Bank at https://www.icicibank.com/aboutus/annual.html.
RISK MANAGEMENT FRAMEWORK
The Bank’s risk management framework 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 focussed oversight of various
risks, as follows:
•
and business
The Risk Committee of the Board reviews risk
management policies of the Bank pertaining to
credit, market, liquidity, operational and outsourcing
continuity management.
risks
The Committee also reviews the Risk Appetite and
Enterprise Risk Management frameworks, Internal
Capital Adequacy Assessment Process (ICAAP) and
stress testing. The stress testing framework includes
a range of Bank-specific, market (systemic) and
II and
combined scenarios. The ICAAP exercise covers
the domestic and overseas operations of the Bank,
banking subsidiaries and non-banking subsidiaries.
The Committee reviews migration to the advanced
approaches under Basel
implementation
of Basel III, risk return profile of the Bank and
the activities of the Asset Liability Management
Committee. The Committee reviews the level and
direction of major risks pertaining to credit, market,
liquidity, operational, technology, compliance, group,
management and capital at risk as a part of the risk
dashboard. In addition, the Committee has oversight
on risks of subsidiaries covered under the Group
Risk Management Framework. The Risk Committee
also reviews the Liquidity Contingency Plan for the
Bank and the various thresholds set out in the Plan.
in key
The Credit Committee of the Board, apart from
sanctioning credit proposals based on the Bank’s
credit approval authorisation framework, reviews
developments
industrial sectors and the
Bank’s exposure to these sectors as well as to large
borrower accounts and borrower groups. The Credit
Committee also reviews major credit portfolios,
non-performing
loans, accounts under watch,
overdues and incremental sanctions.
The Audit Committee of the Board provides direction
to and monitors the quality of the internal audit
function, oversees the financial reporting process and
also monitors compliance with inspection and audit
reports of RBI, other regulators and statutory auditors.
The Asset Liability Management Committee provides
guidance for management of liquidity of the overall
Bank and management of interest rate risk in the
banking book within the broad parameters laid down
by the Board of Directors/Risk Committee.
•
•
•
Summaries of reviews conducted by these Committees
are reported to the Board on a regular basis.
for each
Policies approved from time to time by the Board of
Directors/Committees of the Board form the governing
framework
risk. The business
type of
activities are undertaken within this policy framework.
Independent groups and subgroups have been constituted
across the Bank to facilitate independent evaluation,
monitoring and reporting of various risks. These groups
function independently of the business groups/subgroups.
the Risk
The Bank has dedicated groups, namely,
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. The Risk Management Group
51
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS is further organised into the Credit Risk Management
Group, Market Risk Management Group, Operational Risk
Management Group and Information Security Group.
The Chief Risk Officer (CRO) reports to the Risk Committee
constituted by the Board which reviews risk management
policies of the Bank. The CRO, for administrative purpose
reports to President. The above mentioned groups are
independent of all business operations and coordinate
with representatives of the business units to implement
the Bank’s risk management policies and methodologies.
The Internal Audit and Compliance groups are responsible
to the Audit Committee of the Board.
INFORMATION REQUIRED UNDER THE
SEXUAL HARASSMENT OF WOMEN AT
WORKPLACE (PREVENTION, PROHIBITION
& REDRESSAL) ACT, 2013
The Bank has a policy against sexual harassment and a
formal process for dealing with complaints of harassment or
discrimination. The said policy is in line with the requirements
of the Sexual Harassment of Women at the Workplace
(Prevention, Prohibition & Redressal) Act, 2013. The Bank
has complied with provisions relating to the constitution of
Internal Complaints Committee under the said Act.
Pursuant to the amendment to the Securities and
(Listing Obligations and
Exchange Board of
Disclosure Requirements) Regulations, 2015, the details
pertaining to number of complaints during the year has
been provided below:
India
which aims at a high level of business ethics,
effective supervision and enhancement of value for
all stakeholders.
Whistle-Blower Policy
The Bank has formulated a Whistle-Blower Policy, which
is periodically reviewed. The policy comprehensively
provides an opportunity for any employee or director
of the Bank to raise any issue concerning breaches of
law, accounting policies or any act resulting in financial
or reputation loss and misuse of office or suspected or
actual fraud. The policy provides for a mechanism to
report such concerns to the Audit Committee through
specified channels. The policy has been periodically
communicated to the employees and also posted
on the Bank’s intranet. The Whistle-Blower Policy
complies with the requirements of Vigil mechanism
as stipulated under Section 177 of the Companies Act,
2013 and other applicable laws, rules and regulations.
The details of establishment of the Whistle-Blower
Policy/Vigil mechanism have been disclosed on the
website of the Bank.
Code of Conduct as prescribed under the
Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015
In accordance with
the
Securities and Exchange Board of India (Prohibition
of Insider Trading) Regulations, 2015, the Bank has
adopted the revised ICICI Bank Code on Prohibition
of Insider Trading.
the amendments
to
a)
b)
c)
1
number
financial year: 59
of
complaints
filed
during
the
number of complaints disposed off during the
financial year: 59
number of complaints pending1 at end of the
financial year: Nil
Complaints that are open beyond the applicable turnaround
time (90 days). All complaints received during FY2019 have been
closed within the applicable turnaround time.
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
to oversee critical areas. At March 31, 2019, independent
Directors constituted a majority on most of
the
Committees and most of the Committees were chaired
by independent Directors.
PHILOSOPHY OF CORPORATE
GOVERNANCE
ICICI Bank’s corporate governance philosophy
encompasses regulatory and legal requirements,
I.
52
Group Code of Business Conduct and Ethics
The Group Code of Business Conduct and Ethics for
Directors and employees of the ICICI Group aims at
ensuring consistent standards of conduct and ethical
business practices across the constituents of the
ICICI Group. This Code is reviewed on an annual
basis and the latest Code is available on the website
of the Bank (www.icicibank.com). Pursuant to the
Securities and Exchange Board of India (Listing
Requirements)
Obligations
Regulations, 2015, a confirmation from the Managing
Director & CEO regarding compliance with the Code
by all the Directors and senior management forms
part of the Annual Report.
Disclosure
and
the
requirements of
Material Subsidiaries
the
In accordance with
India
(Listing
Securities and Exchange Board of
Requirements)
and
Obligations
formulated a
Regulations, 2015,
Policy
for determining Material Subsidiaries and
the same has been hosted on the website of the
Bank
(https://www.icicibank.com/aboutus/other-
policies.page?#toptitle). At March 31, 2019, no subsidiary
Disclosure
the Bank has
at
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
of the Bank qualifies as a material unlisted subsidiary as
per the criteria stipulated in the regulations.
Familiarisation Programme for independent
Directors
Independent Directors are familiarised with their
roles, rights and responsibilities in the Bank as
well as with the nature of the industry and the
induction
business model of the Bank through
programmes at the time of their appointment as
Directors and through presentations on economy
& industry overview, key regulatory developments,
strategy and performance which are made to the
Directors from time to time. The details of the
familiarisation programmes have been hosted on the
website of the Bank and can be accessed on the link:
(https://www.icicibank.com/aboutus/bod-1.page?).
CEO/CFO Certification
In terms of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015, the certification by the Managing
Director & CEO and Chief Financial Officer on the
financial statements and internal controls relating to
financial reporting has been obtained.
Fees to statutory auditors
The details of fees pertaining to services provided
by the statutory auditors and entities in the network
firm/network entity of which the statutory auditors
is a part, to ICICI Bank Limited and its subsidiaries
during the year ended March 31, 2019 are given in
the following table:
Nature of service
Audit
Certification and other audit
related services
Total
Amount in `1
72,218,686
6,800,000
79,018,686
1 Excludes taxes and out of pocket expenses.
Details of utilisation of funds
During the year under review, the Bank has not raised
any funds through Preferential Allotment or Qualified
Institutions Placement as specified under Regulation
32(7A) of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015.
Recommendations of mandatory committees
All the recommendations made by the committees
of the Board mandatorily required to be constituted
by
the Companies Act, 2013
and the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 were accepted by the Board.
the Bank under
Skills/expertise/competence of the Board of
Directors
The Bank has identified the core skills/expertise/
competence of the Board of Directors as required
under Section 10A(2)(a) of the Banking Regulation
Act, 1949 in the context of its business(es) and the
sectors(s) for it to function effectively and has been in
compliance with the same.
The details of the core skills/expertise/competence possessed by the existing directors of the Bank is
detailed as under:
Name of Directors
Girish Chandra Chaturvedi
Rama Bijapurkar
Uday Chitale
Neelam Dhawan
S. Madhavan
Hari L. Mundra
Radhakrishnan Nair
B. Sriram
Lalit Kumar Chandel
Sandeep Bakhshi
Vishakha Mulye
Anup Bagchi
Areas of expertise
Banking, Economics, Business Management and Agriculture Sector
Business Management and Marketing
Accounts, Finance and Alternate Dispute Resolution (ADR) Specialist
Information Technology
Accountancy, Economics, Finance, Law, Information Technology,
Human Resources, Risk Management, Business Management
Credit and Consumer Finance
Accountancy, Agriculture and Rural Economy, Banking, Law,
Co-operation, Risk Management, Business Management
Economics & Finance
Banking and Finance
Banking, Insurance, Capital Markets, External Assistance, Agriculture
and Rural Development, Power, Irrigation and Health
Finance, Banking and Insurance
Finance and Banking
Retail & Rural and Inclusive Banking
53
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Credit Rating as on March 31, 2019
Foreign currency denominated instrument ratings
Instrument type
Senior unsecured medium term notes
Senior unsecured medium term notes issued under Tokyo pro-bond
Certificate of Deposits
Rupee denominated instrument ratings
Instrument type
Tier II bonds (Basel III)
Additional Tier 1 bonds (Basel III)
Unsecured redeemable bonds
Upper Tier II bonds
Lower Tier II bonds1
Long-term bonds issued by erstwhile ICICI Limited
Certificate of Deposits
Fixed deposits
1 Includes Lower Tier II bonds issued by erstwhile The Bank of Rajasthan Limited.
Moody's
Baa3
-
P-3
S&P
BBB-
-
-
JCRA
-
BBB+
-
CARE
ICRA
CRISIL
CARE AAA [ICRA]AAA
CARE AA+ [ICRA]AA+ CRISIL AA+
-
CARE AAA [ICRA]AAA
-
CARE AAA
-
CRISIL AAA
CARE AAA [ICRA]AAA
CARE AAA [ICRA]AAA CRISIL AAA
-
CARE A1+ [ICRA]A1+
CARE AAA
MAAA
-
-
Moody's: Moody's Investors Services
S&P: S&P Global Ratings
JCRA: Japan Credit Rating Agency, Limited
CARE: CARE Ratings Limited, India
ICRA: ICRA Limited, India
CRISIL: CRISIL Limited, India
During the year under review, there were no
revisions in the credit ratings obtained by the Bank.
During the year, the Bank sought a rating from CRISIL
Limited for its Additional Tier 1 bonds which were
rated CRISIL AA+.
India
DIVIDEND DISTRIBUTION POLICY
In accordance with Regulation 43A of the Securities
and Exchange Board of
(Listing Obligations
and Disclosure Requirements) Regulations, 2015, the
Bank has formulated a Dividend Distribution Policy
and the same is annexed herewith as Annexure D.
The Policy is hosted on the website of the Bank and
can be viewed at (https://www.icicibank.com/aboutus
/other-policies.page?#toptitle).
CERTIFICATE FROM A COMPANY
SECRETARY IN PRACTICE
In terms of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015, the Bank has obtained a Certificate
from a Company Secretary in practice that none of
the directors on the Board of the Bank have been
debarred or disqualified from being appointed or
54
continuing as directors of companies by the Securities
and Exchange Board of India/Ministry of Corporate
Affairs or any such statutory authority. The Certificate
of Company Secretary
is annexed
herewith as Annexure E.
in practice
India
BOARD OF DIRECTORS
ICICI Bank has a broad-based Board of Directors,
constituted in compliance with the Banking Regulation
Act, 1949, the Companies Act, 2013 and the Securities
and Exchange Board of
(Listing Obligations
and Disclosure Requirements) Regulations, 2015
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
various 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, Stakeholders Relationship
Committee and Review Committee for Identification of
Wilful Defaulters/Non Co-operative Borrowers.
There were eighteen meetings of the Board during the
year – April 2, May 2, May 7, May 8, May 15, May 17,
May 29, June 13, June 18, June 27, June 29, July 27,
September 18, October 4 and October 26 in 2018 and
January 14, January 30 and February 22 in 2019.
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
There were no inter se relationships between any of the Directors.
The names of the Directors, their attendance at Board Meetings during the year, attendance at the last AGM and
details of other directorships and board committee memberships held by them at March 31, 2019 are set out in the
following table:
Board
Meetings
attended
during the
year
Attendance
at last AGM
(September
12, 2018)
Number of directorships
of other
Indian public
limited
companies
of other
Indian
companies
Names of the other listed
entity where a person is
a director and category of
directorship
Number
of other
committee1
memberships
7/7
Present
2
-
1)
2)
1(1)
Infrastructure
Leasing and Financial
Services Limited (NED)
IL & FS Energy
Development Company
Limited (Chairman, NED)
11/11
N.A.
N.A.
N.A.
N.A.
N.A.
Name of Director
Independent Directors
G. C. Chaturvedi
(Director w.e.f. July 1, 2018,
Chairman w.e.f. July 17, 2018)
(DIN: 00110996)
M. K. Sharma
(Chairman upto close
of business hours on
June 30, 2018)
(DIN: 00327684)
Dileep Choksi
(upto March 31, 2019)
(DIN: 00016322)
Hari L. Mundra
(w.e.f. October 26, 2018)
(DIN: 00287029)
M. D. Mallya
(w.e.f. May 29, 2018 and upto
October 4, 2018)
(DIN: 01804955)
Neelam Dhawan2
(DIN: 00871445)
Radhakrishnan Nair
(w.e.f. May 2, 2018)
(DIN: 07225354)
17/18
Present
N.A.
N.A.
N.A.
2/3
N.A.
2
-
1)
Allcargo
Logistics Limited (ID)
0/7
Absent
N.A.
N.A.
N.A.
14/18
Present
16/16
Present
-
7
3
-
1
2
-
1)
2)
3)
1)
2)
ICICI Prudential
Life Insurance
Company Limited (ID)
Geojit Financial
Services Limited (ID)
ICICI Securities Primary
Dealership Limited (ID)
Nestle India Limited (ID)
Mahindra & Mahindra
Financial Services
Limited (ID)
3) Emami Limited (ID)
Rama Bijapurkar
(w.e.f. January 14, 2019)
(DIN: 00001835)
2/2
N.A.
N.A.
3(1)
N.A.
-
2
3(2)
55
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS Board
Meetings
attended
during the
year
Attendance
at last AGM
(September
12, 2018)
2/2
N.A.
Number of directorships
of other
Indian public
limited
companies
-
of other
Indian
companies
-
1/2
N.A.
N.A.
N.A.
18/18
Present
4
1
1)
2)
Names of the other listed
entity where a person is
a director and category of
directorship
Number
of other
committee1
memberships
-
N.A.
4(1)
-
N.A
ICICI Lombard
General Insurance
Company Limited (ID)
India Infradebt
Limited (ID)
8/18
Absent
N.A.
N.A.
N.A
N.A.
Name of Director
B. Sriram
(w.e.f. January 14, 2019)
(DIN: 02993708)
Tushaar Shah
(upto close of business hours
on May 2, 2018)
(DIN: 03055738)
Uday Chitale
(DIN: 00043268)
V. K. Sharma
(upto March 31, 2019)
(DIN : 02449088)
Government Nominee Directors
Amit Agrawal
(upto April 5, 2018)
(DIN: 07117013)
Lalit Kumar Chandel
(w.e.f. December 4, 2018)
(DIN: 00182667)
0/1
0/3
N.A.
N.A.
N.A.
N.A.
N.A.
1
-
1)
National Insurance
Company Limited
(Government
Nominee Director)
N.A.
-
Lok Ranjan (w.e.f. April 5, 2018
and upto December 4, 2018)
(DIN: 07791967)
Managing Director & CEO / Wholetime Directors
0/14
Absent
N.A.
N.A.
N.A.
N.A.
Anup Bagchi
(DIN: 00105962)
17/18
Present
5
-
1)
2)
3)
1
ICICI Prudential
Life Insurance
Company Limited (NED)
ICICI Securities
Limited (NED)
ICICI Home Finance
Company Limited
(Chairman, NED)
8/14
Absent
N.A.
N.A.
N.A.
N.A.
8/9
N.A.
N.A.
N.A.
N.A.
N.A.
6/6
Present
-
-
-
-
Chanda Kochhar
(upto close of business
hours on October 4, 2018)
(DIN: 00043617)
N. S. Kannan
(upto close of business
hours on June 18, 2018)
(DIN: 00066009)
Sandeep Bakhshi
(Wholetime Director w.e.f. July
31, 2018, Managing Director &
CEO w.e.f. October 15, 2018)
(DIN: 00109206)
56
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS Name of Director
Vijay Chandok
(upto May 6, 2019)
(DIN: 01545262)
Vishakha Mulye
(DIN: 00203578)
Number of directorships
Board
Meetings
attended
during the
year
Attendance
at last AGM
(September
12, 2018)
17/18
Present
of other
Indian public
limited
companies
1
15/18
Present
1
of other
Indian
companies
-
-
Names of the other listed
entity where a person is
a director and category of
directorship
Number
of other
committee1
memberships
-
1)
ICICI Lombard
General Insurance
Company Limited (NED)
-
-
Independent Director (ID)
Non-Executive Director (NED)
1 Includes only chairpersonship/membership of Audit Committee and Stakeholders’ Relationship Committee of other Indian public limited
companies. Figures in parentheses indicate committee chairpersonships.
2 Participated in three Meetings through video-conference and one Meeting through tele-conference.
The terms of reference of the Board Committees as
mentioned earlier, their composition and attendance
of the respective Members at the various Committee
Meetings held during fiscal 2019 are set out below:
to
appointment,
the quarterly and annual
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 examining the financial
statements and auditors’ report and overseeing
the financial reporting process to ensure fairness,
sufficiency and credibility of financial statements,
review of
financial
statements before submission
the Board,
review of management’s discussion & analysis,
recommendation of
terms of
appointment, remuneration and removal of central
and branch statutory auditors and chief internal
auditor, approval of payment to statutory auditors
for other permitted services rendered by them,
reviewing and monitoring with the management
the auditor’s independence and the performance
and effectiveness of the audit process, approval of
transactions with related parties or any subsequent
modifications, review of statement of significant
loans
related party
and/or advances
from/investment by the Bank
in its subsidiaries, review of functioning of the
Whistle-Blower Policy, 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,
transactions, utilisation of
the
and
rights
issue,
(public
review of the findings of internal investigations,
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
issue, preferential
issue, etc.), the statement of funds utilised for
the purposes other than those stated in the offer
document/prospectus/notice
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, examination of
reasons for substantial defaults, if any, in payment
to stakeholders, valuation of undertakings or assets,
evaluation of risk management systems and scrutiny
of inter-corporate loans and investments. The Audit
Committee is also empowered to appoint/oversee
the work of any registered public accounting firm,
establish procedures for receipt and treatment
regarding accounting
of complaints
independent
and auditing matters and engage
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 Chief Financial
Officer (i.e., the wholetime 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.
received
57
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Composition
There were seventeen Meetings of the Committee
during the year – April 20, April 26, May 7,
June 6, June 28, July 12, July 18, July 26, July 27,
July 30, October 22 and October 26 in 2018 and
January 28, January 29, January 30, February 22 and
March 7 in 2019. The details of the composition of
the Committee and attendance at its Meetings held
during the year are set out in the following table:
Name of Member
Uday Chitale, Chairman
Dileep Choksi*, Alternate Chairman
Radhakrishnan Nair (w.e.f. May 3, 2018)
Tushaar Shah (upto May 2, 2018)
Number of
meetings
attended
17/17
15/17
15/15
0/2
* Participated in one Meeting through tele-conference.
Upon completion of his tenure as a Director, Dileep
Choksi ceased to be a Member of the Committee
with effect from April 1, 2019.
reconstituted
The Board on April 14, 2019
the
which
to
S. Madhavan, independent Director, was inducted
a Member of the Committee with immediate effect.
Committee
pursuant
III. BOARD GOVERNANCE, REMUNERATION
of
functions
the Committee
& NOMINATION COMMITTEE
Terms of Reference
The
include
recommending appointments of Directors to the
Board, identifying persons who are qualified to
become Directors and who may be appointed in
senior management in accordance with the criteria
laid down and recommending to the Board their
appointment and removal,
formulate a criteria
for the evaluation of the performance of the
Wholetime/Independent Directors and the Board
and to extend or continue the term of appointment
of independent Directors on the basis of the report
of performance evaluation of independent Directors,
recommending to the Board a policy relating to
the remuneration for the Directors, key managerial
personnel and other employees, recommending
to
(including
performance bonus and perquisites) to wholetime
Directors and senior management personnel.
Recommending commission and
fee payable
to non-executive Directors subject to applicable
regulations, approving the policy for and quantum
of bonus payable to the members of the staff
including senior management and key managerial
remuneration
the Board
the
58
personnel, formulating the criteria for determining
qualifications, positive attributes and independence
of a Director, framing policy on Board diversity,
framing guidelines for the Employees Stock Option
Scheme (ESOS) and decide on the grant of stock
options to employees and wholetime Directors of
the Bank and its subsidiary companies.
Composition
There were twelve Meetings of the Committee
during the year – May 7, May 29, June 18, June 27,
June 29, July 27, September 18, October 4 and
October 26 in 2018 and January 14, January 30 and
March 20 in 2019. The details of the composition of
the Committee and attendance at its Meetings held
during the year are set out in the following table:
Name of Member
Neelam Dhawan, Chairperson
(Chairperson w.e.f. July 1, 2018)
Dileep Choksi (Chairman w.e.f. May 3,
2018 and upto June 30, 2018, Member
upto January 14, 2019)
Tushaar Shah1 (Chairman and Member
upto May 2, 2018)
G. C. Chaturvedi2 (w.e.f. July 27, 2018)
M. K. Sharma (upto June 30, 2018)
Rama Bijapurkar
(w.e.f. January 14, 2019)
B. Sriram (w.e.f. January 14, 2019)
V. K. Sharma (upto January 14, 2019)
Number of
meetings
attended
7/7
10/10
-
6/6
5/5
2/2
2/2
6/10
1 No Meetings were held during his tenure.
2 Participated in one Meeting through video-conference.
Policy/Criteria for Directors’ Appointment
The Bank with the approval of its Board Governance,
Remuneration & Nomination Committee (Committee)
has put in place a policy on Directors’ appointment
and remuneration including criteria for determining
qualifications, positive attributes and independence
of a Director as well as a policy on Board diversity.
The policy has been framed based on the broad
principles as outlined hereinafter. The Committee
would evaluate the composition of the Board and
vacancies arising in the Board from time to time.
The Committee while recommending candidature
of a Director would consider the special knowledge
or expertise possessed by the candidate as required
under Banking Regulation Act, 1949. The Committee
would assess the fit and proper credentials of the
candidate and the companies/entities with which
the candidate is associated either as a director or
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
otherwise and as to whether such association is
permissible under RBI guidelines and the internal
norms adopted by
the above
assessment, the Committee would be guided by the
guidelines issued by RBI in this regard.
the Bank. For
The Committee will also evaluate the prospective
candidate for the position of a Director from
the perspective of the criteria for independence
prescribed under Companies Act, 2013 as well as
the listing regulations. For a non-executive Director
to be classified as
independent he/she must
satisfy the criteria of independence as prescribed
and
independence.
The Committee will review the same and determine
the independence of a Director.
a declaration of
sign
The Committee based on the above assessments will
make suitable recommendations on the appointment
of Directors to the Board.
Remuneration policy
The Compensation Policy of the Bank is in line
with the RBI circular dated January 13, 2012 and
is in compliance with the requirements for the
Remuneration Policy as prescribed under
the
Companies Act, 2013. The Policy is divided into
the segments, Part A, Part B and Part C where Part
A covers the requirements for wholetime Directors
& employees pursuant to RBI guidelines, Part B
relates to compensation to non-executive Directors
(except part-time non-executive Chairman) and Part
C relates to compensation to part-time non-executive
Chairman. The Compensation/Remuneration Policy is
available on
the Bank under
the
(https://www.icicibank.com/aboutus/
other-policies.page?#toptitle). Further details with
respect to the Compensation Policy are provided
under
titled “Compensation Policy
and Practices”.
the website of
the section
link
remuneration payable
to non-executive/
The
independent Directors is governed by the provisions
of the Banking Regulation Act, 1949, RBI guidelines
issued from time to time and the provisions of
the Companies Act, 2013 and related rules to the
extent it is not inconsistent with the provisions of
the Banking Regulation Act, 1949/RBI guidelines.
The remuneration for the non-executive/independent
Directors (other than Government Nominee Director)
would be sitting fee for attending each Meeting of
the Committee/Board as approved by the Board.
The Members at their Meeting held on July 11, 2016
approved the payment of profit related commission
upto ` 1,000,000 per annum to each non-executive
Director of the Bank (other than part-time Chairman
and the Government Nominee Director).
For the non-executive Chairman, the remuneration, in
addition to sitting fee includes such fixed payments
as may be recommended by the Board and approved
by the Members and RBI, 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 duties as Chairman of the
Bank and any other modes of remuneration as may
be permitted by RBI through any circulars/guidelines
as may be issued from time to time.
the
All
non-executive/independent Directors
would be entitled to reimbursement of expenses
for attending Board/Committee Meetings, official
visits and participation
forums on
behalf of the Bank.
in various
Performance evaluation of the Board, Committees
and Directors
The Bank with the approval of its Board Governance,
Remuneration & Nomination Committee has put in
place an evaluation framework for evaluation of the
Board, Directors, Chairperson and Committees.
for
the Directors,
The evaluations
the Board,
Chairman of the Board and the Committees is
carried out through circulation of four different
questionnaires, for the Directors, for the Board, for
the Chairperson of the Board and the Committees
respectively. The performance of the Board
is
assessed on select parameters related to roles,
responsibilities and obligations of
the Board,
relevance of Board discussions, attention to strategic
issues, performance on key areas, providing
feedback to executive management and assessing
the quality, quantity and timeliness of flow of
information between the Company management
and the Board that is necessary for the Board to
effectively and reasonably perform their duties.
The evaluation criteria for the Directors is based on
their participation, contribution and offering guidance
to and understanding of the areas which were
relevant to them in their capacity as members of the
Board. The evaluation criteria for the Chairperson of
the Board besides the general criteria adopted for
assessment of all Directors, focuses incrementally
leadership abilities, effective management
on
of meetings and preservation of
interest of
stakeholders. The evaluation of the Committees
is based on assessment of the clarity with which
the mandate of the Committee is defined, effective
59
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
discharge of terms and reference of the Committees
and assessment of effectiveness of contribution of
the Committee’s deliberation/recommendations to
the functioning/decisions of the Board. The overall
performance evaluation process for fiscal 2019
was completed to the satisfaction of the Board.
The Board of Directors also identified specific action
points arising out of the overall evaluation which
would be executed as directed by the Board.
The evaluation process for wholetime Directors
is
titled
“Compensation Policy and Practices”.
further detailed under
the section
Details of Remuneration paid to Executive Directors
The Board Governance, Remuneration & Nomination
Committee determines and recommends to the
Board
including
performance bonus and perquisites, payable to the
wholetime Directors.
the amount of remuneration,
The following table sets out the details of remuneration (including perquisites and retiral benefits) paid to Directors
in fiscal 2019:
Basic
Allowances and perquisites 2
Contribution to provident fund
Contribution to superannuation fund
Contribution to gratuity fund
1
Sandeep Bakhshi1 Vishakha Mulye
2018-19
2,33,01,960
2,06,13,574
27,96,237
34,95,300
19,41,053
2018-19
2,21,20,038
2,24,38,936
26,54,403
0
18,42,599
Anup Bagchi
2018-19
2,10,67,440
2,05,42,265
25,28,094
0
17,54,918
Amount (`)
Vijay Chandok
2018-19
2,10,67,440
1,87,75,761
25,28,094
31,60,120
17,54,918
Sandeep Bakhshi assumed office as Chief Operating Officer (Designate) effective June 19, 2018. RBI approved his appointment as
Wholetime Director designated as Chief Operating Officer effective July 31, 2018. He was subsequently appointed as Managing
Director & CEO as per RBI approval effective October 15, 2018. The above is his part year salary.
2 Allowances and perquisites exclude stock options exercised during fiscal 2019 which does not constitute remuneration paid to the
wholetime Directors for fiscal 2019.
3 The performance bonus and ESOPs payable in fiscal 2019 (pertaining to fiscal 2018) is pending RBI approvals.
4
Remuneration paid to following Directors not included above
(a) Chanda Kochhar was with the Bank till October 4, 2018. Basic, allowances & perquisites and retirals paid during the year are
` 15,665,561, ` 56,576,012 and ` 3,184,807 respectively. These include amount pertaining to full and final settlement given to
Kochhar in October 2018.
(b) N.S. Kannan was with the Bank till June 18, 2018. Basic, allowances & perquisites and retirals paid during the year are ` 5,048,758,
` 5,711,859 and ` 1,783,728 respectively.
(evaluated as per
Income-tax rules
Perquisites
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. 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 approval of RBI. The stock options
for fiscal 2018 are awaiting approvals from the RBI.
The options shall vest in a graded manner over a
three year period, with 30%, 30% and 40% of the
grant vesting in each year, commencing from the end
of 12 months from the date of the grant. The options
so vested are to be exercised within 5 years from the
date of vesting.
Sandeep Bakhshi was appointed as Managing
Director & CEO with effect from October 15, 2018
as per the RBI approval. The Bank does not pay any
severance fees to its Managing Director & CEO or
to its wholetime Directors. The tenure of the office
of Managing Director & CEO and the wholetime
Directors of the Bank is 5 years, subject to approval
of RBI and the Members. The notice period for
each of them, as specified in their respective
terms of appointments is 2 months in addition to
gardening leave.
Details of Remuneration paid to non-executive
Directors
The Board of Directors have approved the payment of
` 1,00,000 as sitting fee for each Meeting of the Board
and Audit Committee and ` 50,000 as sitting fee for
60
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
each Meeting of the Committee attended other than
the Audit Committee.
RBI has approved the appointment of G. C. Chaturvedi
as Non-Executive (part-time) Chairman of the Bank
for a period from July 17, 2018 till June 30, 2021 on
a fixed remuneration of ` 3,500,000 per annum.
Information on the total sitting fees and commission
paid to each non-executive Director during fiscal
2019 is set out in the following table:
Name of Director
G.C. Chaturvedi2, 8
M. K. Sharma3
Rama Bijapurkar4
Uday Chitale8
Dileep C. Choksi8
Neelam Dhawan8
Radhakrishnan Nair8
Hari L. Mundra5
V. K. Sharma
B. Sriram4
Tushaar Shah6
M. D. Mallya7
Amount (`)
Sitting Fees Commission1
11,00,000
18,50,000
3,50,000
-
-
-
44,50,000
202,740
46,50,000
10,00,000
26,50,000
48,00,000
7,00,000
216,438
-
-
13,00,000
10,00,000
4,50,000
-
2,00,000
10,00,000
-
-
1
Commission pertaining to fiscal 2018, paid in fiscal 2019.
2 w.e.f. July 1, 2018
3 upto June 30, 2018
4 w.e.f. January 14, 2019
5 w.e.f. October 26, 2018
6 upto May 2, 2018
7 w.e.f. May 29, 2018 and upto October 4, 2018
8
The independent Directors were paid sitting fees for its
meeting held on September 12, 2018.
In fiscal 2019, a gross amount of ` 24,74,465 was paid as
remuneration for the period July 17, 2018 to March 31, 2019
to G. C. Chaturvedi and a gross amount of ` 40,83,334 was
paid as remuneration for the period May 1, 2017 to June 30,
2018 to M. K. Sharma.
Government Nominee Director
reimbursement
of
Committee Meetings.
expenses
is only entitled
to
attending Board/
for
Details of shares/convertible instruments held by
existing Non-Executive Directors:
As on March 31, 2019, Rama Bijapurkar and Lalit Kumar
Chandel held 2,600 and 6 equity shares of ` 2 each
respectively. Further, S. Madhavan held 1,600 equity
shares of ` 2 each as on the date of his appointment
i.e. April 14, 2019.
Remuneration disclosures as required under RBI
guidelines
The RBI circular DBOD No. BC. 72/29.67.001/2011-12
on “Compensation of wholetime Directors/Chief
Executive Officers/Risk takers and Control function
staff etc.” requires the Bank to make following
disclosures on remuneration on an annual basis in
their Annual Report:
COMPENSATION POLICY AND PRACTICES
(A) Qualitative Disclosures
a)
Information relating to the bodies that oversee
remuneration.
• Name, composition and mandate of the
main body overseeing remuneration
to
the Board
recommending
The Board Governance, Remuneration and
Nomination Committee (BGRNC/Committee)
is the body which oversees the remuneration
aspects. The functions of the Committee
include
recommending appointments of
Directors to the Board, identifying persons
who are qualified to become Directors and
who may be appointed in senior management
in accordance with the criteria laid down
and
their
appointment and removal; formulate a criteria
for the evaluation of the performance of the
whole time/ independent Directors and the
Board and to extend or continue the term of
appointment of independent Director on the
basis of the report of performance evaluation
of independent Directors, recommending to
the Board a policy relating to the remuneration
for the Directors, Key Managerial Personnel
to
and other employees, recommending
(including
the Board
performance bonus and perquisites)
to
wholetime Directors
(WTDs) and senior
management, commission and fee payable to
non- executive Directors subject to applicable
regulations, approving the policy for and
quantum of bonus payable to members of
the staff including senior management and
key managerial personnel, formulating the
criteria for determining qualifications, positive
attributes and independence of a Director,
framing policy on Board diversity, framing
guidelines for the Employee Stock Option
Scheme (ESOS) and decide on the grant of the
Bank’s stock options to employees and WTDs
of the Bank and its subsidiary companies.
remuneration
the
61
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
• External consultants whose advice has
been sought, the body by which they were
commissioned, and in what areas of the
remuneration process
The Bank employed the services of a reputed
consulting firm for market benchmarking
in
including
executive compensation.
the area of compensation,
•
Scope of the Bank’s remuneration policy
(e.g. by regions, business lines), including
the extent to which it is applicable to foreign
subsidiaries and branches
The Compensation Policy of the Bank, as last
reviewed by the BGRNC and the Board at
their meeting held on May 7, 2018, pursuant
to the guidelines issued by RBI, covers all
employees of the Bank, including those in
overseas branches of the Bank. In addition to
the Bank’s Compensation Policy guidelines,
the overseas branches also adhere
to
relevant local regulations.
• Type of employees covered and number
of such employees
All employees of the Bank are governed by
the Compensation Policy. The total number
of permanent employees of the Bank at
March 31, 2019 was 84,922.
•
to the Board regarding compensation for
WTDs, senior management and equivalent
positions and bonus
for employees,
including senior management and key
management personnel.
o Alignment of compensation philosophy
with prudent risk taking: The Bank seeks
to achieve a prudent mix of fixed and
variable pay, with a higher proportion
of variable pay at senior levels and no
guaranteed bonuses. Compensation is
sought to be aligned to both financial and
non-financial indicators of performance
including aspects like risk management
and customer service. In addition, the
Bank has an employee stock option
scheme aimed at aligning compensation
to Long-term performance
through
stock option grants that vest over a
period of time. Compensation of staff
in financial and risk control functions
is independent of the business areas
they oversee and depends on their
performance assessment.
Whether the remuneration committee
remuneration
reviewed
policy during the past year, and if so, an
overview of any changes that were made
firm’s
the
Information relating to the design and
structure of remuneration processes.
• Key
features
and
objectives
of
remuneration policy
The Bank has under the guidance of the Board
and the BGRNC,
followed compensation
practices intended to drive meritocracy within
the framework of prudent risk management.
This approach has been incorporated in the
Compensation Policy, the key elements of
which are given below.
the
and
o Effective governance of compensation: The
BGRNC has oversight over compensation.
The Committee defines Key Performance
Indicators (KPIs) for WTDs and equivalent
positions
organisational
performance norms for bonus based on the
financial and strategic plan approved by the
Board. The KPIs include both quantitative
and qualitative aspects. The BGRNC
assesses organisational performance as
well as the
for
WTDs and equivalent positions. Based on
its assessment, it makes recommendations
individual performance
b)
62
During the year ended March 31, 2019, the
Bank’s Compensation Policy was reviewed
by the BGRNC and the Board at their
meeting held on May 7, 2018. No changes
were proposed in the compensation policy.
•
Discussion of how the Bank ensures
that risk and compliance employees
are remunerated independently of the
businesses they oversee
The compensation of staff engaged in
control functions like Risk and Compliance
depends on their performance, which is
based on achievement of the key results
of their respective functions. Their goal
sheets do not include any business targets.
c)
Description of the ways in which current
and future risks are taken into account in the
remuneration processes.
• Overview of the key risks that the Bank
implementing
into account when
takes
remuneration measures
The Board approves the risk framework
for the Bank and the business activities
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
of the Bank are undertaken within this
framework to achieve the financial plan.
The risk framework includes the Bank’s risk
appetite, limits framework and policies and
procedures governing various types of risk.
KPIs of WTDs & equivalent positions, as
well as employees, incorporate relevant risk
management related aspects. For example,
in addition to performance targets in areas
risk calibrated core operating
such as
profit
tax,
excluding
income), performance
indicators include aspects such as asset
quality. The BGRNC takes into consideration
all
the above aspects while assessing
organisational and individual performance
compensation-related
and
recommendations to the Board.
(profit before provisions and
treasury
making
• Overview of the nature and type of key
measures used to take account of these
risks, including risk difficult to measure
annual performance
targets
and
The
performance evaluation
incorporate both
qualitative and quantitative aspects including
asset quality, refinement/improvement of
the risk management framework, effective
management of stakeholder relationships
and mentoring key members of the top and
senior management.
• Discussion of the ways in which these
measures affect remuneration
risk
in conjunction with a
Every year, the financial plan/targets are
formulated
risk
framework with limit structures for various
areas of risk/lines of business, within which
the Bank operates to achieve the financial
plan. To ensure effective alignment of
taking,
compensation with prudent
the BGRNC takes into account adherence
to the risk framework in conjunction with
which the financial plan/targets have been
formulated. KPIs of WTDs and equivalent
positions, as well as employees, incorporate
relevant risk management related aspects.
For example, in addition to performance
targets in areas such as risk calibrated core
indicators
operating profit, performance
include aspects such as asset quality.
The BGRNC
consideration
all
the above aspects while assessing
organisational and individual performance
compensation-related
and
recommendations to the Board.
making
takes
into
• Discussion of how the nature and type of
these measures have changed over the past
year and reasons for the changes, as well as
the impact of changes on remuneration.
The nature and type of these measures have
not changed over the past year and hence,
there is no impact on remuneration.
d)
Description of the ways in which the
Bank seeks to link performance during a
performance measurement period with levels
of remuneration
•
Overview of main performance metrics
for Bank,
lines
and individuals
level business
top
The main performance metrics include
risk calibrated core operating profit (profit
before provisions and
tax, excluding
treasury
income) asset quality metrics
(such as additions to non-performing loans
and recoveries & upgrades), compliance
with regulatory norms, refinement of risk
management processes and customer
service.
and
weightages for various metrics vary with
the role and level of the individual.
specific metrics
The
• Discussion of how amounts of individual
remuneration are linked to the Bank-wide
and individual performance
into
aspects
performance
takes
mentioned
consideration
The BGRNC
while
above
and making
assessing
compensation-related
recommendations
to the Board regarding the performance
assessment of WTDs
equivalent
positions. The performance assessment of
individual employees is undertaken based on
achievements compared to their goal sheets,
incorporate various aspects/metrics
which
described earlier.
and
• Discussion of the measures the Bank will in
general implement to adjust remuneration
in the event that performance metrics
are weak, including the Bank's criteria for
determining 'weak' performance metrics
the Bank will
The Bank’s Compensation Policy outlines
implement
the measures
in the event of a reasonable evidence of
deterioration
financial performance.
Should such an event occur in the manner
outlined in the policy, the BGRNC may decide
to apply malus on none, part or all of the
unvested deferred variable compensation.
in
63
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
e)
Description of the ways in which the Bank
seeks to adjust remuneration to take account
of the longer term performance
• Discussion of the Bank’s policy on deferral
and vesting of variable remuneration and,
if the fraction of variable remuneration
that is deferred differs across employees or
groups of employees, a description of the
factors that determine the fraction and their
relative importance
f)
The quantum of bonus for an employee does
not exceed a certain percentage (as stipulated
in the compensation policy) of the total fixed
pay in a year. Within this percentage, if the
quantum of bonus exceeds a predefined
threshold percentage of the total fixed pay, a
part of the bonus is deferred and paid over
a period. These thresholds for deferrals are
same across employees.
• Discussion of the Bank’s policy and criteria
remuneration
adjusting
for
before vesting and
(if permitted by
national law) after vesting through claw
back arrangements
deferred
The deferred portion of variable pay is
subject to malus, under which the Bank
would prevent vesting of all or part of the
variable pay in the event of an enquiry
determining gross negligence, breach of
integrity or in the event of a reasonable
financial
evidence of deterioration
in
performance. In such cases, variable pay
already paid out may also be subjected to
clawback arrangements, as applicable.
the
Description of the different forms of variable
remuneration that the Bank utilises and the
rationale for using these different forms
• Overview of
forms of variable
remuneration offered. A discussion of
the use of different forms of variable
remuneration and, if the mix of different
forms of variable
remuneration differs
across employees or group of employees, a
description of the factors that determine the
mix and their relative importance
The Bank pays performance linked retention
pay (PLRP) to its front-line staff and junior
management and performance bonus to its
middle and senior management. PLRP aims
to reward front line and junior managers,
mainly on the basis of skill maturity attained
through experience and continuity in role
which is a key differentiator for customer
service. The Bank also pays variable pay to
sales officers and relationship managers in
wealth management roles while ensuring
that such pay-outs are in accordance with
applicable regulatory requirements.
The Bank ensures higher proportion of
variable pay at senior levels and lower
variable pay for front-line staff and junior
management levels.
(B) Quantitative disclosures
The following table sets forth, for the period indicated, the details of quantitative disclosure for remuneration of
WTDs (including MD & CEO) and equivalent positions.
Particulars
Number of meetings held by the BGRNC
Remuneration paid to its members during the financial year (sitting fees)
Number of employees who received a variable remuneration award
Number and total amount of sign-on awards made
Number and total amount of guaranteed bonuses awarded
Details of severance pay, in addition to accrued benefits
Breakdown of amount of remuneration awards for the financial year
Fixed1
Variable2
- Deferred
- Non-deferred
64
` in million, except numbers
Year ended
March 31,
2019
Year ended
March 31,
2018
12
1.9
-
-
-
-
7
0.3
4
-
-
-
274.7
222.7
-
-
-
-
-
-
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Particulars
Share-linked instruments
Total amount of deferred remuneration paid out during the year
Total amount of outstanding deferred remuneration
Cash
Shares (nos.)
Shares-linked instruments3
Other forms
Total amount of outstanding deferred remuneration and retained remuneration
exposed to ex-post explicit and/or implicit adjustments
Total amount of reductions during the year due to ex-post explicit adjustments4
Total amount of reductions during the year due to ex-post implicit adjustments
Year ended
March 31,
2019
-
-
-
N.A.
-
Year ended
March 31,
2018
4,526,500
6.1
-
N.A.
-
6,260,597
14,825,250
-
-
-
-
-
-
-
-
1
Fixed pay includes basic salary, supplementary allowances, superannuation, contribution to provident fund and gratuity fund by the
Bank. The amounts mentioned in the above table corresponds to the period of employment of WTDs/ President in the Bank during
the year ended March 31, 2019.
For the years ended March 31, 2019 and March 31, 2018, variable and share-linked instruments represent amounts paid/options
awarded for the years ended March 31, 2018 and March 31, 2017 respectively, as per RBI approvals.
Includes stock options granted to MD & CEO and President during their employment with the group company.
3
4 Excludes ` 74.1 million variable pay to the former MD & CEO for past years which has been directed for claw-back.
2
Disclosures required with respect to Section
197(12) of the Companies Act, 2013
The ratio of the remuneration of each Director to
the median employee’s remuneration and such
other details in terms of Section 197(12) of the
Companies Act, 2013 read with Rule 5 of the
(Appointment and Remuneration of
Companies
Managerial Personnel) Rules, 2014 and as amended
from time to time.
(ii)
The percentage increase in remuneration of
each director, Chief Financial Officer, Chief
Executive Officer, Company Secretary or
Manager, if any, in the financial year;
The percentage
increase done with effect
from April 1, 2018 in the remuneration of
each Director, Chief Financial Officer, Chief
Executive Officer and Company Secretary is
provided below:
(i)
The ratio of the remuneration of each director
to the median remuneration of the employees
of the Company for the financial year;
Sandeep Bakhshi, Managing
Director & CEO1
Vishakha Mulye
118:1
97:1
Vijay Chandok
89:1
Anup Bagchi
89:1
1 Sandeep Bakhshi was appointed as MD & CEO effective
October 15, 2018 as per the RBI approval. Annualised
remuneration has been used for computation of ratios.
Sandeep Bakhshi, Managing
Director & CEO1
Vishakha Mulye, Executive Director
Vijay Chandok, Executive Director
Anup Bagchi, Executive Director
NA
15%
15%
15%
15%
Rakesh Jha, Chief Financial Officer
Ranganath Athreya, Company Secretary 11%
1 Sandeep Bakhshi was appointed as MD & CEO
effective October 15, 2018 as per the RBI approval.
65
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
(iii) The percentage increase in the median
remuneration of employees in the financial
year;
the median
increase
The percentage
remuneration of employees in the financial
year was around 9%.
in
(iv) The number of permanent employees on the
(v)
rolls of company;
The number of employees, as mentioned in
the section on ‘Management’s Discussion &
Analysis’ is 86,763. Out of this, the employees
on permanent rolls of the Company is 84,922,
including employees in overseas locations.
Average percentile increase already made
in the salaries of employees other than the
managerial personnel in the last financial
year and its comparison with the percentile
increase in the managerial remuneration and
justification thereof and point out if there are
any exceptional circumstances for increase in
the managerial remuneration;
The average percentage
in
the salaries of total employees other than the
Key Managerial Personnel for FY2019 was
around 9%, while the average increase in the
remuneration of the Key Managerial Personnel
was in the range of 11% to 15%.
increase made
(vi) Affirmation that the remuneration is as per
the remuneration policy of the Company.
Yes
Note:
The independent Directors of the Bank, other than Chairman
receive remuneration in the form of sitting fees and profit
related commission. The Chairman receives sitting fees and
remuneration as approved by the shareholders and RBI.
IV. CORPORATE SOCIAL RESPONSIBILITY
the
the
ICICI Group and
COMMITTEE
Terms of Reference
The functions of the Committee include review
of corporate social responsibility (CSR) initiatives
undertaken by
ICICI
Foundation for Inclusive Growth, formulation and
recommendation to the Board of a CSR Policy
indicating the activities to be undertaken by the
Company and recommendation of
the amount
of expenditure to be incurred on such activities,
reviewing and recommending the annual CSR plan
to the Board, making recommendations to the
Board with respect to the CSR initiatives, policies
and practices of the ICICI Group, monitoring the
CSR activities, implementation and compliance with
the CSR Policy and reviewing and implementing, if
66
required, any other matter related to CSR initiatives as
recommended/suggested by RBI or any other body.
Composition
There were three Meetings of the Committee during
the year – April 12, 2018, September 7, 2018 and
January 16, 2019. The details of the composition of
the Committee and attendance at its Meetings held
during the year are set out in the following table:
Name of Member
Radhakrishnan Nair, Chairman
(Member w.e.f. May 3, 2018 and
Chairman w.e.f. July 1, 2018)
Dileep Choksi (Chairman w.e.f. May 3,
2018 and upto June 30, 2018)
Tushaar Shah (Chairman and Member
upto May 2, 2018)
Amit Agrawal (upto April 5, 2018)1
Anup Bagchi (w.e.f. July 1, 2018)
Chanda Kochhar (upto October 4, 2018)
1 No meetings were held during his tenure.
Number of
meetings
attended
2/2
1/3
1/1
-
2/2
1/2
Upon completion of his tenure as a Director, Dileep
Choksi ceased to be a Member of the Committee
with effect from April 1, 2019.
The Board at
its Meeting on May 6, 2019
reconstituted the Committee pursuant to which
Rama Bijapurkar and Uday Chitale, independent
Directors has been inducted as the Members of the
Committee with effect from June 30, 2019.
about
the policy developed
and
Details
implemented by the Company on Corporate Social
Responsibility (CSR) initiatives taken during the
year.
ICICI Bank has a long-standing commitment towards
socio-economic development. The Bank’s Corporate
Social Responsibility (CSR) activities are focussed
in the areas of education, health, skill development
rural development
for
sustainable
inclusion
and related activities
and financial literacy, and other activities as may
be required towards fulfilling the CSR objectives.
The activities are largely implemented either directly
or through the ICICI Foundation for Inclusive Growth.
The CSR policy has been hosted on the website of
the Bank at https://www.icicibank.com/managed-
assets/docs/about-us/ICICI-Bank-CSR-Policy.pdf. The
Annual Report on the Bank’s CSR activities is annexed
herewith as Annexure F.
including financial
livelihoods,
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
V. CREDIT COMMITTEE
Terms of Reference
The functions of the Committee include review of
developments in key industrial sectors, major credit
portfolios and approval of credit proposals as per
the authorisation approved by the Board.
Composition
There were thirty one Meetings of the Committee
during the year. The details of the composition of
the Committee and attendance at its Meetings held
during the year are set out in the following table:
Name of Member
Sandeep Bakhshi, Chairman1 (Member
w.e.f. July 31, 2018 and Chairman w.e.f.
October 26, 2018)
M. K. Sharma
(Chairman upto June 30, 2018)
Chanda Kochhar (upto October 4, 2018)
Hari L. Mundra2
(w.e.f. October 26, 2018)
M. D. Mallya (w.e.f. May 29, 2018 and
upto October 4, 2018)
Radhakrishnan Nair3 (w.e.f. May 3, 2018)
Tushaar Shah (upto May 2, 2018)
Number of
meetings
attended
17/20
7/7
4/17
9/11
0/13
29/29
1/2
21/24
Vishakha Mulye4 (w.e.f. July 1, 2018)
1 Attended one meeting through video-conferencing
2 Attended one meeting through tele-conference
3 Attended three meetings through video-conferencing
4
Attended two meetings through video-conferencing and
one through tele-conference.
The Chairperson was decided at each Meeting held during
July 1, 2018 till October 25, 2018.
The Board at
its Meeting on May 6, 2019
reconstituted the Committee pursuant to which
Radhakrishnan Nair, independent Director ceases
to be a Member of the Committee with effect from
June 30, 2019, G. C. Chaturvedi,
independent
Director has been inducted as a Member with effect
from June 30, 2019 and upto September 30, 2019,
B. Sriram, independent Director has been inducted
as a Member of the Committee with effect from
October 1, 2019.
VI. CUSTOMER SERVICE COMMITTEE
Terms of Reference
The functions of this Committee include review
of customer service
the
functioning of the Customer Service Council and
evolving innovative measures for enhancing the
initiatives, overseeing
quality of customer service and improvement in the
overall satisfaction level of customers.
Composition
There were five Meetings of the Committee during
the year. The details of the composition of the
Committee and attendance at its Meetings held
during the year are set out in the following table:
Name of Member
Rama Bijapurkar, Chairperson
(Chairperson w.e.f. January 14, 2019)
M. D. Mallya, (Chairman w.e.f. July 1,
2018 and upto October 4, 2018)
Tushaar Shah (Chairman and Member
upto May 2, 2018)1
Uday Chitale (Chairman w.e.f. May 3,
2018 and upto June 30, 2018)2
Anup Bagchi
Chanda Kochhar (upto October 4, 2018)
Neelam Dhawan (w.e.f. May 3, 2018)
Sandeep Bakhshi (w.e.f. July 31, 2018)
1 No meetings were held during his tenure.
Number of
meetings
attended
1/1
0/2
-
5/5
3/5
1/3
5/5
3/3
2 Also chaired the meeting held in November 2018.
The Board at its Meeting on May 6, 2019 reconstituted
the Committee pursuant to which Uday Chitale,
Neelam Dhawan, independent Directors ceases to
be the Members of the Committee with effect from
June 30, 2019 and Hari L. Mundra, independent
Director has been inducted as a Member of the
Committee with effect from June 30, 2019.
VII. FRAUD MONITORING COMMITTEE
Terms of Reference
The Committee monitors and reviews all the frauds
involving an amount of ` 10.0 million and above
identifying the systemic
with the objective of
lacunae, if any, that facilitated perpetration of the
fraud and put in place measures to rectify the
same. The functions of this Committee include
identifying the reasons for delay in detection, if
any, and reporting to top management of the Bank
and RBI on the same. The progress of investigation
and recovery position is also monitored by the
Committee. The Committee also ensures
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. The role
of the Committee is also to review the efficacy of
the remedial action taken to prevent recurrence
internal
of
frauds, such as strengthening of
67
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
controls and put in place other measures as may
be considered relevant to strengthen preventive
measures against frauds.
Composition
There were six Meetings of the Committee during
the year. The details of the composition of the
Committee and attendance at its Meetings held
during the year are set out in the following table:
Name of Member
Dileep Choksi, Chairman
Anup Bagchi
Chanda Kochhar (upto October 4, 2018)
Neelam Dhawan
Sandeep Bakhshi (w.e.f. July 31, 2018)
Uday Chitale
Number of
meetings
attended
6/6
6/6
1/3
6/6
3/3
6/6
Upon completion of his tenure as Director, Dileep
Choksi ceased to be the Chairman and Member of
the Committee with effect from April 1, 2019.
independent Director ceases
The Board at
its Meeting on May 6, 2019
reconstituted the Committee pursuant to which
Uday Chitale,
to
be a Member of the Committee with effect from
June 30, 2019 and S. Madhavan, independent
Director has been inducted as a Member as well
as appointed as Chairman of the Committee and
Radhakrishnan Nair, independent Director has been
inducted as a Member of the Committee with effect
from June 30, 2019.
VIII. INFORMATION TECHNOLOGY STRATEGY
COMMITTEE
Terms of Reference
The functions of the Committee are to approve
strategy for Information Technology (IT) and policy
documents, ensure that
is aligned
with business strategy, review IT risks, ensure
proper balance of IT investments for sustaining the
Bank’s growth, oversee the aggregate funding of
IT at Bank-level, ascertain if the management has
resources to ensure the proper management of
IT risks, review contribution of IT to business and
oversee the activities of Digital Council.
IT strategy
Composition
There were four Meetings of the Committee during
the year. The details of the composition of the
Committee and attendance at its Meetings held
during the year are set out in the following table:
Name of Member
Neelam Dhawan, Chairperson
Anup Bagchi (w.e.f. July 1, 2018)
Chanda Kochhar (upto October 4, 2018)
Dileep Choksi
Sandeep Bakhshi (w.e.f. July 31, 2018)
Number of
meetings
attended
4/4
2/3
1/2
4/4
3/3
Upon completion of his tenure as a Director, Dileep
Choksi ceased to be a Member of the Committee
with effect from April 1, 2019.
its Meeting on May 6, 2019
The Board at
reconstituted the Committee pursuant to which
B. Sriram, independent Director has been inducted
as a Member as well as appointed as the Chairman
of the Committee with effect from June 30, 2019.
IX. RISK COMMITTEE
Terms of Reference
The functions of the Committee are to review ICICI
Bank’s risk management policies pertaining to credit,
market, liquidity, operational, outsourcing, reputation
risks, business continuity plan and disaster recovery
plan. The functions of the Committee also include
review of the Enterprise Risk Management (ERM)
framework, Risk Appetite Framework (RAF), stress
testing
Internal Capital Adequacy
Assessment Process (ICAAP) and framework for
capital allocation; review of the status of Basel II
and Basel III implementation, risk return profile of
the Bank, risk dashboard covering various risks,
outsourcing activities and the activities of the Asset
Liability Management Committee. The Committee
also has oversight on risks of subsidiaries covered
under the Group Risk Management Framework.
The Committee also carries out Cyber Security
risk assessment.
framework,
Composition
There were eight Meetings of the Committee during
the year – April 27, 2018, June 11, 2018, June 20, 2018,
July 25, 2018, October 22, 2018, January 29, 2019,
February 18, 2019 and March 20, 2019. The details of
the composition of the Committee and attendance
at its Meetings held during the year are set out in the
following table:
68
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Number of
meetings
attended
Name of Member
Number of
meetings
attended
Name of Member
B. Sriram, Chairman
(Chairman w.e.f. January 14, 2019)
Dileep Choksi (Chairman w.e.f. July 1,
2018 and upto January 14, 2019)
M. K. Sharma (Chairman
upto June 30, 2018)
Chanda Kochhar (upto October 4, 2018)
M. D. Mallya (w.e.f. July 1, 2018 and
upto October 4, 2018)
Sandeep Bakhshi (w.e.f. July 31, 2018)
V. K. Sharma
3/3
6/8
3/3
1/4
0/1
4/4
4/8
Upon completion of their tenure as Directors, Dileep
Choksi and V. K. Sharma ceased to be the Members
of the Committee with effect from April 1, 2019.
The Board on April 14, 2019 reconstituted the
Committee pursuant
to which S. Madhavan,
independent Director, was inducted as a Member of
the Committee with immediate effect.
The Board at its Meeting on May 6, 2019 reconstituted
the Committee pursuant to which Sandeep Bakhshi,
Managing Director & CEO, ceases to be a Member
of the Committee with effect from June 30, 2019,
B. Sriram, independent Director ceases to be a
Member and Chairman of Risk Committee with effect
from September 30, 2019 and G. C. Chaturvedi has
been inducted as a Member as well as the Chairman
of the Committee with effect from October 1, 2019.
X. STAKEHOLDERS RELATIONSHIP
COMMITTEE
Terms of Reference
The functions of the Committee include approval
and rejection of transfer or transmission of shares,
bonds, debentures, issue of duplicate certificates,
allotment of securities from time to time, redressal
and resolution of grievances of security holders,
delegation of authority for opening and operation of
bank accounts for payment of interest/dividend.
Composition
There were four Meetings of the Committee during
the year – April 26, 2018, July 26, 2018, October 26,
2018 and January 29, 2019. The details of the
composition of the Committee and attendance at
its Meetings held during the year are set out in the
following table:
Hari L. Mundra, Chairman
(Chairman w.e.f. January 14, 2019)
M. D. Mallya, (Chairman w.e.f. July 1,
2018 and upto October 4, 2018)
Uday Chitale (Chairman upto June 30,
2018), (Chairman w.e.f. October 26,
2018 and upto January 14, 2019)
Anup Bagchi
N.S. Kannan (upto June 18, 2018)
Vijay Chandok (w.e.f. October 26, 2018
and upto January 14, 2019)
1/1
0/1
4/4
4/4
1/1
1/1
The Company Secretary of the Bank acts as
the Compliance Officer in accordance with the
requirements of
the Securities and Exchange
Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015. 173
investor
complaints received in fiscal 2019 were processed.
At March 31, 2019, no complaints were pending.
XI. REVIEW COMMITTEE FOR
IDENTIFICATION OF WILFUL
DEFAULTERS/NON CO-OPERATIVE
BORROWERS
Terms of Reference
The function of the Committee is to review the
order of
Identification of
Wilful Defaulters/Non Co-operative Borrowers
(a Committee comprising wholetime Directors and
senior executives of the Bank to examine the facts
and record the fact of the borrower being a wilful
defaulter/non co-operative borrower) and confirm
the same for the order to be considered final.
the Committee
for
Composition
The Managing Director & CEO is the Chairman
independent
of this Committee and any two
Directors comprise
remaining members.
the
Two Meetings of the Committee were held during
the year. The Meeting held on January 30, 2019
was attended by Sandeep Bakhshi, Uday Chitale
and Radhakrishnan Nair and the Meeting held on
March 19, 2019 was attended by Sandeep Bakhshi,
Uday Chitale and Neelam Dhawan.
69
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
XII. SEPARATE MEETING OF INDEPENDENT
DIRECTORS
During the year, the independent Directors met on
May 7/8/11, 2018 and September 12, 2018 inter alia
to review the matters statutorily prescribed under
the Companies Act, 2013 and the Securities and
Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
XIII.OTHER COMMITTEES
In addition to the above, the Board has from time
to time constituted various committees, namely,
Committee of Executive Directors, Executive
Investment Committee, Asset Liability Management
Committee, Committee for Identification of Wilful
(comprising
Operational
Vigilance
Defaulters/Non Co-operative Borrowers, Committee
of Senior Management
certain
wholetime Directors and Executives) and Committee
of Executives, Compliance Committee, Product &
Process Approval Committee, Regional Committees
for India and overseas operations, Outsourcing
Risk Management
Committee,
Product
Committee,
Governance Committee and other Committees
(all comprising Executives). These committees
are responsible for specific operational areas like
asset
approval/renewal
of credit proposals, approval of products and
processes and management of operational risk,
under authorisation/supervision of the Board and
its Committees.
liability management,
Committee,
XIV. 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
Twenty-Fourth Annual
General Meeting
Wednesday,
September 12, 2018
11:30 a.m. Sir Sayajirao Nagargruh, Vadodara Mahanagar
Seva Sadan, Near GEB Colony, Old Padra Road,
Akota, Vadodara 390 020
Twenty-Third Annual
General Meeting
Friday, June 30, 2017
12 noon
Professor Chandravadan Mehta Auditorium,
General Education Centre, Opposite D. N. Hall
Ground, The Maharaja Sayajirao University,
Pratapgunj, Vadodara 390 002
Twenty-Second Annual
General Meeting
Monday, July 11, 2016
12 noon Sir Sayajirao Nagargruh, Vadodara Mahanagar
Seva Sadan, Near GEB Colony, Old Padra Road,
Akota, Vadodara 390 020
The details of the Special Resolutions passed in the Annual General Meetings held in the previous three years
are given below:
General Body Meeting
Day, Date
Resolutions
Annual General Meeting
Wednesday,
September 12, 2018
• Amendment to Capital Clause of the Memorandum of
Association
• Amendment to Article 5(a) of the Articles of Association
• Amendment to the definition of Exercise Period under
Employees Stock Option Scheme-2000
• Private placement of securities under Section 42 of the
Companies Act, 2013
Annual General Meeting
Friday, June 30, 2017 • Private placement of securities under Section 42 of the
Companies Act, 2013
Annual General Meeting
Monday, July 11, 2016 • Private placement of securities under Section 42 of the
Companies Act, 2013
70
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Postal Ballot
No resolution was passed through postal ballot
during the financial year ended March 31, 2019.
At present, no special resolution is proposed to be
passed through postal ballot.
XV. 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,
detailed as hereunder:
i.
ii.
As mentioned by RBI in its press release dated
March 29, 2018, RBI has through an order dated
March 26, 2018, imposed a monetary penalty of
` 589.0 million on the Bank for non-compliance
with directions/guidelines
issued by RBI.
This penalty has been imposed in exercise of
powers vested in RBI under the provisions of
Section 47A(1)(c) read with Section 46(4)(i) of
the Banking Regulation Act, 1949.
The RBI, in exercise of powers conferred under
Section 47(A)(1)(c) read with Section 46(4)(i)
of the Banking Regulation Act, 1949, levied an
aggregate penalty of ` 10.0 million vide its
order dated February 25, 2019. The penalty has
been levied for delay in compliance to RBI’s
directives on “Time-bound implementation &
strengthening of SWIFT related controls”.
3.
In terms of the Whistle-Blower Policy of the Bank, no
employee of the Bank has been denied access to the
Audit Committee.
XVI. MEANS OF COMMUNICATION
It is ICICI Bank’s belief that all stakeholders should
have access to information regarding its position to
enable them to accurately assess its future potential.
ICICI Bank disseminates information on its operations
General Shareholder Information
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,
financial performance, operational performance and
the latest press releases.
(SEC) guidelines,
ICICI Bank’s 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
all
Exchange Commission
information which could have a material bearing
on ICICI Bank’s share price is released through
leading domestic and global wire agencies.
The
the
National Stock Exchange of India Limited (NSE),
the BSE Limited (BSE), New York Stock Exchange
(NYSE), Securities Exchange Commission (SEC),
Singapore Stock Exchange, Japan Securities
Dealers Association and SIX Swiss Exchange Ltd.
from time to time.
is also disseminated
information
to
as
information and
financial and other
compliances
the
The
various
required/prescribed
under the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 are
filed electronically with
NSE/BSE
through NSE’s Electronic Application
Processing System (NEAPS) and through BSE Listing
Centre and are also available on their respective
websites in addition to the Bank’s website.
ICICI Bank’s quarterly financial results are published
either in the Financial Express (Mumbai, Pune,
Ahmedabad, New Delhi, Lucknow, Chandigarh,
Kolkata, Chennai, Bengaluru, Hyderabad and Kochi
editions) or the Business Standard (Ahmedabad,
Bengaluru, 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.
Annual General Meeting
Day, Date
Time
Venue
Twenty-Fifth Annual
General Meeting
Friday,
August 9, 2019
11:45 a.m. Professor Chandravadan Mehta Auditorium,
General Education Centre, Opposite D. N. Hall
Ground, The Maharaja Sayajirao University,
Pratapgunj, Vadodara 390 002
71
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Financial Year
: April 1, 2018 to March 31, 2019
Book Closure
: July 24, 2019 to August 9, 2019 (both days inclusive)
Dividend Payment Date : Will be paid/despatched on or after August 9, 2019
Listing of Equity Shares/ADSs/Bonds on Stock Exchanges
Stock Exchange
Code for ICICI Bank
BSE Limited (BSE) (Equity)
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001
National Stock Exchange of India Limited (NSE) (Equity)
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
The bonds issued in domestic market comprised of privately placed bonds as well as bonds issued via public
issues which are listed on BSE/NSE.
ICICI Bank has paid annual listing fees for the relevant periods to BSE and NSE where its equity shares/bonds are
listed and NYSE where its ADSs are listed.
Listing of Other Securities
The bonds issued overseas are issued either in public or private placement format. The listed bonds are traded
on Singapore Exchange Securities Trading Limited, 2 Shenton Way, #02-02, SGX Centre 1, Singapore 068804 or
SIX Swiss Exchange Ltd, P.O. Box 1758, CH-8021 Zurich, Switzerland or Tokyo Stock Exchange, 2-1 Nihombashi
Kabutocho, Chuo-ku Tokyo 103-8220 Japan.
Market Price Information
The reported high and low closing prices and volume of equity shares of ICICI Bank traded during fiscal 2019 on
BSE and NSE are set out in the following table:
BSE
NSE
High `
Low `
Volume
High `
Low `
Volume
291.70
311.10
300.85
307.25
344.40
335.05
355.10
369.60
366.60
382.00
358.90
400.00
400.00
261.90
48,964,990
277.10
16,729,093
271.15
21,579,782
259.30
32,034,681
297.85
27,140,030
305.00
16,355,694
303.60
31,068,109
349.80
21,701,012
342.75
20,667,652
343.45
35,262,982
338.55
22,186,545
353.50
31,473,075
259.30 325,163,645
291.75
310.95
300.65
307.35
344.35
335.10
355.00
370.00
366.50
382.25
359.30
400.55
400.55
261.85
276.90
271.40
259.25
298.55
305.55
303.70
349.65
342.80
343.55
338.75
354.25
Total Volume
on BSE and
NSE
554,034,479
505,069,489
437,411,078
454,140,171
438,940,061
460,519,843
494,208,829
526,243,510
484,867,421
512,007,451
327,737,124
344,092,818
603,713,714
634,781,823
417,163,584
438,864,596
320,932,298
341,599,950
467,373,555
502,636,537
289,573,739
311,760,284
359,345,712
390,818,787
259.25
5,146,336,604
5,471,500,249
Month
April-18
May-18
June-18
July-18
August-18
September-18
October-18
November-18
December-18
January-19
February-19
March-19
Fiscal 2019
72
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
The reported high and low closing prices and volume of ADRs of ICICI Bank traded during fiscal 2019 on the NYSE
are given below:
Month
April-18
May-18
June-18
July-18
August-18
September-18
October-18
November-18
December-18
January-19
February-19
March-19
Fiscal 2019
High (USD)
Low (USD)
Number of ADS traded
8.85
9.17
8.83
8.83
9.77
9.26
9.49
10.34
10.34
10.78
10.00
11.46
11.46
8.19
8.36
7.88
7.72
8.77
8.49
8.19
9.39
9.26
9.55
9.50
9.91
7.72
187,144,800
129,614,888
143,643,499
144,318,500
142,154,987
147,329,300
219,347,100
131,262,900
125,519,700
154,374,100
127,747,800
144,777,900
1,797,235,474
The performance of ICICI Bank equity shares relative to the S&P BSE Sensitive Index (Sensex), S&P BSE Bank Index
(Bankex) and NYSE Financial Index during the period April 1, 2018 to March 31, 2019 is given in the following chart:
160.00
150.00
140.00
130.00
120.00
110.00
100.00
90.00
80.00
8
1
/
r
p
A
8
1
/
y
a
M
8
1
/
n
u
J
8
1
/
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u
J
8
1
/
g
u
A
8
1
/
p
e
S
8
1
/
t
c
O
8
1
/
v
o
N
8
1
/
c
e
D
9
1
/
n
a
J
9
1
/
b
e
F
9
1
/
r
a
M
S&P BSE Sensex
S&P BSE Bankex
NYSE Financial Index
ICICI Bank
73
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
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 an
information technology company and in addition to
R&T services, provides a wide range of technology &
technology-enabled products and services.
ICICI Bank’s equity shares are traded mainly in
dematerialised form. During the year, 4,148,620
equity shares of face value ` 2 each involving 19,451
certificates were dematerialised. At March 31, 2019,
99.68% of paid-up equity share capital (including
equity shares represented by ADS constituting
24.89% of the paid-up equity share capital) are held
in dematerialised form.
Physical share transfer requests were processed and
the share certificates were returned normally within
a period of seven days from the date of receipt, if
the documents were 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:
No. of transfer deeds
No. of shares transferred
As required under Regulation 40(9) of the Securities
and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015,
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 filed with BSE and NSE.
India
In terms of Regulation 76 of the Securities and
Exchange Board of
(Depositories and
Participants) Regulations, 2018 and SEBI Circular
D&CC/FITTC/CIR-16/2002 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 Stakeholders Relationship Committee and filed
with BSE and NSE, where the equity shares of ICICI
Bank are listed.
Fiscal 2017
Fiscal 2018
Fiscal 2019
Shares of face
value ` 2
Shares of face
value ` 2
Shares of face
value ` 2
414
629
109,155
157,922
2013
585,550
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
Ms. R. C. D’souza 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.: +91-22-7123 8000
Fax No.: +91-22-7123 8099
E-mail : investor@icicibank.com
Queries relating to the operational and financial
performance of ICICI Bank may be addressed to:
Rakesh Jha/Anindya Banerjee
ICICI Bank Limited
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
Tel. No.: +91-22-2653 7131
Fax No.: +91-22-2653 1175
E-mail: ir@icicibank.com
74
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Debenture Trustees
Pursuant to Regulation 53 of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the names and contact details of the debenture trustees for the public issue
bonds and privately placed bonds of the Bank are given below:
Bank of Maharashtra
Head Office, Legal Dept.
Lokmangal,
"1501" Shivaji Nagar,
Pune - 411 005
Tel. No.: +91-020-2553 6256
bomcolaw@mahabank.com
Axis Trustee Services Limited
The Ruby, 2nd Floor, SW 29,
Senapati Bapat Marg,
Dadar West, Mumbai - 400 028
Tel. No.: +91-22-2425 5202
debenturetrustee@axistrustee.com
IDBI Trusteeship Services Limited
Asian Building, Ground Floor,
17, R Kamani Marg,
Ballard Estate,
Mumbai - 400 001
Tel. No.: +91-22-4080 7001
itsupport@idbitrustee.com
The details are available on the website of the Bank at the link (https://www.icicibank.com/Personal-Banking/
investments/icici-bank-bonds/index.page).
Information on Shareholding
Shareholding pattern of ICICI Bank at March 31, 2019
Shareholder Category
No. of shares
% holding
Deutsche Bank Trust Company Americas (Depositary for ADS holders)
1,604,424,721
FIIs/FPIs, NRIs, Foreign Banks, Foreign Companies, OCBs and Foreign Nationals
2,105,174,383
Insurance Companies
Bodies Corporate (including Government Companies and Clearing Members)
Banks & Financial Institutions
Mutual Funds/UTI
Individuals, HUF and Trusts
NBFCs Registered with RBI
Provident Fund/Pension Fund
Alternate Investment Fund
IEPF
Total
772,315,354
152,759,354
1,085,096
1,351,914,622
372,621,600
6,547,817
62,358,629
10,999,750
6,038,327
24.89
32.66
11.98
2.37
0.02
20.97
5.78
0.10
0.97
0.17
0.09
6,446,239,653
100.00
Shareholders of ICICI Bank with more than one percent holding at March 31, 2019
Name of the Shareholder
Deutsche Bank Trust Company Americas*
Life Insurance Corporation of India
No. of shares
% holding
1,604,424,721 24.89
509,224,087
7.90
HDFC Trustee Co Ltd (Various Mutual Fund Accounts)/HDFC Large Cap Fund
267,000,149
4.14
Dodge & Cox International Stock Fund
254,429,276
3.95
SBI Mutual Fund/SBI Dual Advantage Fund and Other Various Fund Accounts
173,093,609
2.69
ICICI Prudential Mutual Fund (Various Mutual Fund Accounts)
Aditya Birla Sun Life Trustee Private Limited
Reliance Capital Trustee Co Ltd/Reliance ETF/Reliance Emergent India Fund
(Various Fund Accounts)
Government of Singapore
Kotak Capital Fund (Various Mutual Fund Accounts)
144,736,199
2.25
130,775,083
2.03
115,164,358
1.79
98,147,231
1.52
85,155,884
1.32
* Deutsche Bank Trust Company Americas holds equity shares of ICICI Bank as depositary for ADS holders.
75
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Distribution of shareholding of ICICI Bank at March 31, 2019
Range – Shares
Upto 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 50,000
50,001 & above
Total
No. of Folios
799,843
51,868
4,124
2,895
1,968
860,698
Disclosure with respect to shares lying in suspense
account
The Bank had 100,222 equity shares held by 483
shareholders lying in suspense account at the
beginning of the fiscal 2019. The Bank has been
transferring the shares
lying unclaimed to the
eligible shareholders as and when the request for
the same has been received after proper verification.
During the year, the Bank had received requests from
33 shareholders holding 11,429 shares for claiming
these shares out of which 4,559 shares held by 8
shareholders were transferred from the suspense
account. As on March 31, 2019, 95,663 shares held
by 475 shareholders remained unclaimed in the
suspense account.
The voting rights on the shares lying in suspense
account are frozen till the rightful owner of such
shares claims the shares.
Transfer of unclaimed dividend and shares to
investor education & protection fund (IEPF)
Pursuant to the provisions of Sections 124 and
125 of the Companies Act, 2013, during fiscal
2019, dividend amount of ` 3.33 crore remaining
unclaimed for a period of seven years from the date
of its transfer to the Unpaid Dividend Accounts of
the Company have been transferred to the Investor
Education and Protection Fund (IEPF).
Pursuant to Section 124(6) of the Companies Act,
2013 read with the Investor Education & Protection
Fund Authority
(Accounting, Audit, Transfer &
Refund) Rules, 2016, during fiscal 2019, 1,314,679
equity shares in respect of which the dividend has
not been claimed for seven consecutive years have
been transferred to the designated demat account of
the IEPF Authority.
Members who have not yet encashed
their
dividend warrant(s) for the financial year ended
March 31, 2012 and/or subsequent years are
requested to submit their claims to the Registrar
%
No. of Shares
92.93
144,418,631
6.02
95,449,190
0.48
28,231,323
0.34
59,559,473
0.23
100.00
6,118,581,036
6,446,239,653
%
2.24
1.48
0.44
0.92
94.92
100.00
and Transfer Agent of the Company without any
delay. The unclaimed dividend and the equity shares
transferred to IEPF can be claimed by making an
application in the prescribed form available on the
website of IEPF i.e. www.iepf.gov.in.
The details of the Nodal Officer appointed under the
provisions of IEPF are available under the Investor
Relations section on the website of the Bank at
www.icicibank.com.
Dematerialisation of securities and updation of
PAN and Bank details
SEBI, vide its Circular dated April 20, 2018, introduced
a documented framework for streamlining and
strengthening the systems and processes of RTAs,
Issuer Companies and Bankers to an Issue with
regards to handling and maintenance of records,
transfer of securities and payment of dividend,
as may be applicable. The said SEBI Circular, inter
alia, provides for updation of PAN and Bank details
the Shareholders, wherever not available.
by
This has been separately communicated
to
investors holding securities in physical form by the
Bank. Those investors who are yet to respond are
requested to take necessary action in the matter
at the earliest.
Outstanding GDRs/ADSs/Warrants or any Convertible
instruments, conversion date and likely impact on
equity
ICICI Bank has 802.21 million ADS (equivalent to
1,604.42 million equity shares) outstanding, which
constituted 24.89% of ICICI Bank’s total equity capital
at March 31, 2019. There are no other convertible
instruments outstanding as on March 31, 2019.
Commodity price risk or foreign exchange risk and
hedging activities
The foreign exchange risk position including bullion
is managed within the net overnight open position
(NOOP) limit approved by the Board of Directors.
The foreign currency assets of the Bank are primarily
76
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
floating rate linked assets. Wholesale liability raising
for foreign currencies takes place in USD or other
currencies via bond issuances, bilateral loans and
syndicated/club loans as well as refinance from Export
Credit Agencies (ECA) which may be at a fixed rate
or floating rate linked. In case of fixed rate Long-term
wholesale fund raising in USDs, the interest rate risk
is generally hedged via interest rate swaps wherein
the Bank moves to a floating rate index in order to
match the asset profile. In case of fund raising in
non USD currencies, the foreign exchange risk is
hedged via foreign exchange swaps or currency
interest rate swaps.
The extant RBI guidelines do not allow AD Category I
Banks to take any market positions in commodity
related activities. However, the extant guidelines
allows Bank to import gold and silver in line with
the RBI license and selling of imported gold/silver
on outright basis to domestic clients or providing
gold metal loan to jewellery manufacturers and take
gold deposits under the Gold Monetisation scheme.
ICICI Bank provides pricing and hedging of Gold Metal
Loan to jewellery customers and such exposures are
covered on a back-to-back basis with gold suppliers.
In view of the above, the disclosure pursuant
the SEBI Circular no. SEBI/HO/CFD/CMD1/
to
CIR/P/2018/0000000141 dated November 15, 2018 is
not required to be given.
Plant Locations – Not applicable
Address for Correspondence
Ranganath Athreya
Company Secretary
ICICI Bank Limited
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai - 400 051
Tel. No.: +91-22-2653 8900
Fax No.: +91-22-2653 1230
E-mail: companysecretary@icicibank.com
is
The Bank
in compliance with requirements
specified in Regulations 17 to 27 and clauses
(b) to (i) of sub-regulation (2) of Regulation 46
of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015.
The Bank has also complied with the discretionary
requirements such as maintaining a separate office
for the Chairman at the Bank’s expense, ensuring
financial statements with unmodified audit opinion,
separation of posts of Chairman and Chief Executive
Officer and reporting of internal auditor directly to
the Audit Committee.
ANALYSIS OF CUSTOMER COMPLAINTS
a) Customer complaints in fiscal 2019
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
Note: The above does not include complaint redressed within 1 working day.
b) Awards passed by the Banking Ombudsman in fiscal 2019
No. of unimplemented awards at the beginning of the year
No. of awards passed by the Banking Ombudsman during the year
No. of awards implemented during the year
No. of unimplemented awards at the end of the year
6,209
264,726
262,259
8,676
Nil
Nil
Nil
Nil
COMPLIANCE CERTIFICATE OF THE
AUDITORS
ICICI Bank has annexed to this Report, a certificate
obtained
the statutory auditors, M/s Walker
Chandiok & Co LLP, Chartered Accountants, regarding
from
compliance of conditions of Corporate Governance
as stipulated in the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
77
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
EMPLOYEE STOCK OPTION SCHEME
The Bank has an Employee Stock Option Scheme
(ESOS/Scheme) which was instituted in fiscal 2000 to
enable the employees and wholetime 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. The Scheme is in compliance with the Securities
and Exchange Board of India (Share Based Employee
(the SEBI Regulations).
Benefits) Regulations, 2014
Pursuant to the SEBI Regulations, options are granted
by the Board Governance, Remuneration & Nomination
Committee (BGRNC) and noted by the Board.
The Scheme was initially approved by the Members at
their meeting held on February 21, 2000 and amended
from time to time.
The Members at the Annual General Meeting held on
September 12, 2018 approved the change in exercise
period to not exceeding five years from date of vesting
of options as may be determined by the BGRNC for each
grant. The above definition of Exercise Period has been
made applicable to all future grants effective May 2018.
The Bank has upto March 31, 2019 granted 499.24
million stock options from time to time aggregating
to 7.74% of the issued equity capital of the Bank at
March 31, 2019. 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 10% of
ICICI Bank’s issued equity shares on the date of the grant
(equivalent to 644.62 million shares of face value ` 2 each
at March 31, 2019).
Particulars of options granted by ICICI Bank as on March 31, 2019 are given below:
Number of options outstanding at the beginning of the year
Number of options granted during the year*
Number of options forfeited/lapsed during the year
Number of options vested during the year
Number of options exercised during the year
Number of shares arising as a result of exercise of options
Money realised by exercise of options during the year (`)
Number of options outstanding at the end of the year
Number of options exercisable at the end of the year
* Excludes options pertaining to Wholetime Directors pending for RBI approval.
235,672,250
31,112,400
18,979,999
46,916,376
18,248,877
18,248,877
3,486,300,104
229,555,774
152,151,329
The Bank follows the intrinsic value method to account for
its stock-based employee compensation plans. The diluted
earnings per share (EPS) pursuant to issue of shares
on exercise of options calculated in accordance with
Accounting Standard 20 (AS-20) was ` 5.17 in fiscal 2019
compared to basic EPS of ` 5.23. Based on the intrinsic
value of options, no compensation cost was recognised
during fiscal 2019. However, if the Bank had used the
fair value of options based on the binomial tree model,
compensation cost in fiscal 2019 would have been higher
by ` 3.18 billion and proforma profit after tax would have
been ` 30.45 billion. On a proforma basis, the Bank’s basic
and diluted earnings per share would have been ` 4.73 and
` 4.68 respectively.
The key assumptions used to estimate the fair value of
options granted during fiscal 2019 are given below:
Risk-free interest rate
Expected life
Expected volatility
Expected dividend yield
7.32% to 8.31%
3.64 to 6.64 years
30.79% to 32.22%
0.43% to 0.80%
The weighted average fair value of options granted
during fiscal 2019 was ` 107.22 (` 86.43 during fiscal
2018) and the weighted average exercise price of
options granted during fiscal 2019 was ` 283.91 (` 251.05
during fiscal 2018).
78
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS Risk free interest rates over the expected term of the option
are based on the government securities yield in effect at
the time of the grant. The expected term of an option is
estimated based on the vesting term as well as expected
exercise behavior of the employees who receive the
option. Expected exercise behaviour is estimated based
on the historical stock option exercise pattern of the Bank.
Expected volatility during the estimated expected term
of the option is based on historical volatility determined
based on observed market prices of the Bank's publicly
traded equity shares. Expected dividends during the
estimated expected term of the option are based on recent
dividend activity.
The detailed disclosures as stipulated under Regulation
14 of the Securities and Exchange Board of India
(Share
Regulations,
2014 will be hosted on the website of the Bank at
https://www.icicibank.com/aboutus/other-policies.page.
Employee
Benefits)
Based
CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The Bank has undertaken various initiatives for energy
conservation at its premises. A detailed write up is given
in the chapter Natural Capital, in the Integrated Report
section of the Annual Report for fiscal 2019 and under
Principle 6 of Section E of the Business Responsibility
Report which will be available on the website of the
Bank at https://www.icicibank.com/aboutus/annual.page.
The Bank has used information technology extensively
in its operations; for details refer to the chapter Strategic
Focus Areas for Business in the Integrated Report section
of the Annual Report for fiscal 2019.
UPDATE ON RECENT DEVELOPMENTS AT
THE BANK
Shareholders were provided an update under this section
last year that the Audit Committee of the Bank under
direction given by the Board of Directors had instituted
an independent enquiry, headed by a former Supreme
Court Judge, Hon’ble Mr. Justice B. N. Srikrishna (Retd.),
to consider various allegations relating to the then
MD & CEO, Ms. Chanda Kochhar. The final findings
and actions taken by the Board were disclosed by
the Bank to the stock exchanges vide press release
dated January 30, 2019 and is now generally available
information. Shareholders can access the said press release
at (www.icicibank.com). Any shareholder who requires
a printed copy of this press release may also write to the
Registrar and Transfer Agents of the Bank.
line with the continuing efforts towards
GREEN INITIATIVE IN CORPORATE
GOVERNANCE
In
'Green
Initiative', the Bank has effected electronic delivery
of Notice of Annual General Meeting and Annual
Report to those Members whose e-mail
ids were
Participants/3i
registered with
the
the
Infotech/Bank. The Companies Act, 2013 and
underlying rules as well as Regulation 36 of the Securities
and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, permit the
dissemination of financial statements and annual report
in electronic mode to the Members. Your Directors are
thankful to the Members for actively participating in the
Green Initiative and seek your continued support.
Depository
SECRETARIAL STANDARDS
Your Bank is in compliance with the Secretarial Standard
on Meetings of the Board of Directors (SS-1) and
Secretarial Standard on General Meetings (SS-2) for the
financial year ended March 31, 2019.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors confirm:
1.
2.
3.
4.
5.
6.
that in the preparation of the annual accounts,
the applicable accounting standards had been
followed, along with proper explanation relating to
material departures;
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 of the Bank for that period;
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, 2013 for safeguarding the assets of the Bank
and for preventing and detecting fraud and other
irregularities;
that they have prepared the annual accounts on a
going concern basis;
that they have laid down internal financial controls
to be followed by the Bank and that such internal
financial controls are adequate and were operating
effectively; and
that they have devised proper systems to ensure
compliance with the provisions of all applicable
laws and that such systems were adequate and
operating effectively.
79
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS 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, 2019.
May 6, 2019
Sandeep Bakhshi
Managing Director & CEO
ACKNOWLEDGEMENTS
ICICI Bank is grateful to the Government of India, Reserve
Bank of India, Securities and Exchange Board of India,
Insurance Regulatory and Development Authority of India
and overseas regulators for their continued co-operation,
support and guidance.
thank
its
international banking
community, rating agencies and stock exchanges for
their support.
investors, the domestic and
ICICI Bank wishes
to
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 to 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 6, 2019
Girish Chandra Chaturvedi
Chairman
80
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS ANNEXURE A
FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2019
(Pursuant to Section 204 (1) of the Companies Act, 2013 and rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014)
To,
The Members,
ICICI Bank Limited
We have conducted the secretarial audit of the compliance
of applicable statutory provisions and the adherence to
good corporate practices by ICICI Bank Limited (hereinafter
called the Company). Secretarial Audit was conducted in a
manner that provided us a reasonable basis for evaluating
the corporate conducts/statutory compliances and
expressing our opinion thereon.
Based on our verification of the Company’s books, papers,
minute books, forms and returns filed and other records
maintained by the Company, the information provided
by the Company, its officers, agents and authorised
representatives during the conduct of secretarial audit,
the explanations and clarifications given to us and the
representations made by the Management, we hereby
report that in our opinion, the Company has, during
the audit period covering the financial year ended on
31st March, 2019, generally complied with the statutory
provisions listed hereunder and also that the Company
has proper Board processes and compliance mechanism
in place to the extent, in the manner and subject to the
reporting made hereinafter:
We have examined the books, papers, minute books,
forms and returns filed and other records made available
to us and maintained by the Company for the financial year
ended on 31st March, 2019 according to the provisions of:
(i)
(ii)
The Companies Act, 2013 (the Act) and the rules
made thereunder;
The Securities Contract
(‘SCRA’) and the rules made thereunder;
(Regulation) Act, 1956
(iii) The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and
the rules and regulations made thereunder to the
extent of Foreign Direct Investment, Overseas Direct
Investment and External Commercial Borrowings;
(v)
The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India
Act, 1992 (‘SEBI Act’)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015;
The Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2009 and The Securities and
Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations, 2018 and
amendments from time to time;
The Securities and Exchange Board of
(Share Based Employees Benefits)
India
Regulations, 2014;
The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008
The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act
and dealing with client; (Not applicable to the
Company during the audit period);
The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009;
(Not applicable to the Company during the
audit period) and
The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 1998; The
Securities and Exchange Board of India (Buyback
of Securities) Regulations, 2018 (Not applicable
to the Company during the audit period)
The Securities and Exchange Board of India
(Merchant Bankers) Regulations, 1992
The Securities and Exchange Board of India
(Bankers to an Issue) Regulations, 1994
The Securities and Exchange Board of India
(Debenture Trustee) Regulations, 1993
The Securities and Exchange Board of India
(Custodian of Securities) Regulations, 1996
(m) The Securities and Exchange Board of India
(Investment Advisers) Regulations, 2013
81
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
(n)
(o)
(p)
The Securities and Exchange Board of India
(Foreign Portfolio Investors) Regulations, 2014
Securities and Exchange Board of India (Stock
Brokers and Sub-Brokers) Regulations, 1992
Securities and Exchange Board of
India
(Depositories and Participant) Regulations, 2018;
(vi) Other
laws
applicable
specifically
to
the
3)
Company namely:
(a)
(b)
Banking Regulation Act, 1949, Master Circulars,
Notifications and Guidelines issued by the RBI
from time to time
The Securitisation and Reconstruction of
Financial Assets and Enforcement of Security
Interest Act, 2002
(c)
Recovery of Debts Due to Banks and Financial
Institutions Act, 1993
4)
(d) The Shops and Establishments Act, 1953
We have also examined compliance with the applicable
clauses of the following:
(i)
(ii)
Secretarial Standards issued by The Institute of
Company Secretaries of India with respect to board
and general meetings.
5)
The Listing Agreements entered into by the Company
with BSE Limited and National Stock Exchange of
India Limited read with the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015.
imposing penalties by Adjudicating Officer) Rules
2005 requiring responses on matters relating to
alleged non-compliance with certain provisions of
the erstwhile Listing Agreement and the Securities
and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015.
The Company has submitted its reply to SEBI.
The Company and it’s ex-Compliance Officer of the
Company received a Notice from SEBI on July 31,
2018 under Rule 4(1) of SCR (Procedure for Holding
Inquiry and imposing penalties by Adjudicating
Officer) Rules 2005 requiring responses on matters
relating to alleged non-compliance with certain
provisions of the erstwhile Listing Agreement with
respect to delayed disclosure of an agreement
relating to merger of the erstwhile Bank of Rajasthan
with the Company.
The Company received a show cause notice from
RBI dated August 23, 2018 under Sections 35, 35A,
46 and 47A of Banking Regulation Act, 1949 relating
to contravention of RBI guidelines on Time-bound
implementation & strengthening of SWIFT related
operational controls.
The Reserve Bank of India (RBI), in exercise of powers
conferred under section 47(A)(1)(c) read with Section
46(4)(i) of the Banking Regulation Act, 1949, levied an
aggregate penalty of `10 million vide its order dated
February 25, 2019 on the Company. The penalty has
been levied for delay in compliance to RBI’s directives
on “Time-bound implementation & strengthening of
SWIFT related controls”.
During the period under review, the Company has
complied with
the Act, Rules,
the provisions of
Regulations, Guidelines, standards etc. mentioned above.
The Company has spent an amount of ` 92.2 crores against
the amount of ` 119.0 crores to be spent during the year
towards Corporate Social Responsibility.
During the year,
The Company received a show cause notice from
RBI dated April 25, 2018 under Section 11 of
Foreign Exchange Management Act, 1999 relating
to contravention of directions issued by Reserve
Bank of India (RBI) in respect of follow-up with
exporters and reporting of export realisation.
The Company submitted a detailed response to the
said show cause notice specifying the efforts taken
by the Company. Taking into cognizance of efforts
made by the Company, RBI through letter dated
December 20, 2018 informed that no monetary
penalty has been imposed.
The Company and it’s Managing Director & CEO
received a Notice from SEBI on May 24, 2018 under
Rule 4(1) of SCR (Procedure for Holding Inquiry and
1)
2)
82
We further report that:
The Board of Directors of the Company is duly constituted
with proper balance of Executive Directors, Non-Executive
Directors and Independent Directors.The changes in the
composition of the Board of Directors that took place
during the period under review were carried out in
compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the
Board Meetings, agenda and detailed notes on agenda were
sent at least seven days in advance, and a system exists for
seeking and obtaining further information and clarifications
on the agenda items before the meeting and for meaningful
participation at the meeting. In respect of meetings held
at short notice or meetings for which the agenda notes
(other than those relating to Unpublished Price Sensitive
Information (UPSI)) were sent at a notice of less than 7 days,
the unanimous consent of the Board/Committee was taken
for discussion of the said agenda items and the same has
been recorded in the minutes.
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Decisions at the Meetings of the Board of Directors and of
the Committees thereof were taken with requisite majority.
We further report that there are adequate systems and
processes in the Company commensurate with the size
and operations of the Company to monitor and ensure
compliance with applicable
laws, rules, regulations
and guidelines.
We further report that during the audit period the
following events occurred during the year which have a
major bearing on the Company’s affairs in pursuance of
the laws, rules, regulations, guidelines, standards etc.
referred to above.
1.
2.
3.
During the financial year ended March 31, 2019,
the Company has issued 18,248,877 equity share
of face value of ` 2 each under the Employee
Stock option Scheme.
The Company redeemed 350 Preference shares during
the year and has complied with the applicable laws.
During the financial year ended March 31, 2019,
the Company has redeemed various series of
debentures in the nature of Public issue bonds, Private
4.
5.
6.
placement bonds and Pension bonds aggregating
to ` 6842,34,81,107/- and has complied with the
applicable laws.
During Q1-2019, the Company sold equity shares
representing 2.00% shareholding in ICICI Prudential
Life Insurance Company Limited through an offer for
sale on stock exchanges for a total consideration of
`1145.97 crore.
The Company has obtained approval of members
by way of special resolution under Section 42 of the
Act to borrow from time to time, by way of issue of
non-convertible securities including but not limited
to bonds and non-convertible debentures in one or
more tranches of upto ` 25,000 crores on private
placement basis.
issued and allotted various
The Company
Non-Convertible Bonds in nature of Debentures
of face value of ` 10,00,000/- each aggregating to
` 1,140 crores on private placement basis in the
domestic market
Place: Mumbai
Date : 06.05.2019
For Parikh Parekh & Associates
Company Secretaries
Signature:
P. N. Parikh
Partner
FCS No: 327 CP No: 1228
This Report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part
of this report.
83
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
ANNEXURE A
To,
The Members
ICICI Bank Limited
Our report of even date is to be read along with this letter.
1.
2.
Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the
correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct
facts are reflected in secretarial records. We believe that the process and practices, we followed provide a reasonable
basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4.
5.
6.
Where ever required, we have obtained the Management representation about the Compliance of laws, rules and
regulations and happening of events etc.
The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the
responsibility of management. Our examination was limited to the verification of procedure on test basis.
The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
For Parikh Parekh & Associates
Company Secretaries
Signature:
P. N. Parikh
Partner
FCS No: 327 CP No: 1228
Place: Mumbai
Date : 06.05.2019
84
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
ANNEXURE B
FORM NO. AOC-2
[Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014]
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred
to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third
proviso thereto
1. Details of contracts or arrangements or transactions not at arm’s length basis
Nil
2. Details of material contracts or arrangement or transactions at arm’s length basis
Nature of contracts/
transactions
Term deposits placed
with the Bank
Investment in equity
shares of related party
by the Bank
Short-term lendings by
the Bank
Loans given by related
party based on standby
letters of credit given
by the Bank
Discounting of letters
of credit issued by the
Bank
Term loan extended by
the Bank
Purchase of investment
securities by the Bank
Sale of investment
securities by the Bank
3 years
-
-
Principal amounts of
derivatives such as
swaps and forwards
contracts
Various
maturities
Sr.
No.
1
2
3
4
5
6
7
8
Name of the related party
Life Insurance
Corporation of India
India Infradebt Limited
India Infradebt Limited
Nature of
relationship
Others
Associate
Associate
ICICI Securities Primary
Dealership Limited
ICICI Bank UK PLC
Subsidiary
Subsidiary
ICICI Home Finance
Company Limited
ICICI Securities Primary
Dealership Limited
ICICI Prudential Life
Insurance Company Limited
ICICI Prudential Life
Insurance Company Limited
ICICI Securities Primary
Dealership Limited
ICICI Lombard General
Insurance Company Limited
ICICI Securities Primary
Dealership Limited
ICICI Home Finance
Company Limited
Shree Renuka
Sugars Limited1
ICICI Prudential Life
Insurance Company Limited
ICICI Securities Limited
ICICI Bank Canada
ICICI Prudential
Asset Management
Company Limited
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Duration of
contracts
Various
maturities
7 days
-
Salient terms of
contracts/ transactions
Interest at applicable
coupon rates
Invested at rights
issue price
` in million
31,721.3
1,960.0
2,740.0
1 day to 5 days Interest at prevailing
158,050.0
Various
maturities
market rates
Interest at prevailing
market rates
2,327.9
2,174.6
1,000.0
31,591.0
3,066.4
Interest at negotiated
competitive rates
At market prices
At market prices
18,391.1
15,368.2
1,518.1
At market prices
445,500.0
39,395.1
2,191.7
1,823.3
1,053.9
1,028.1
644.4
85
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
9
10
11
12
Name of the related party
ICICI Bank UK PLC
Nature of
relationship
Subsidiary
Nature of contracts/
transactions
Current account
deposits by the Bank
Duration of
contracts
-
ICICI Securities Limited
Life Insurance
Corporation of India
ICICI Prudential Life
Insurance Company Limited
ICICI Lombard General
Insurance Company Limited
Life Insurance
Corporation of India
Subsidiary
Others
Subsidiary
Subsidiary
Others
Current account
deposits with the Bank
Interest expense on
borrowings/ deposits
from related party
ICICI Prudential Life
Insurance Company Limited
ICICI Lombard General
Insurance Company Limited
Subsidiary
Subsidiary
Commission income
earned by the Bank on
insurance products
-
-
-
Expenses incurred
by the Bank towards
service provider
arrangement
1 year
10 years
Insurance premium
paid by the Bank
Dividend paid by the
Bank
Dividend received by
the Bank
-
-
-
13
I-Process Services (India)
Private Limited
Associate
14
15
16
ICICI Merchant Services
Private Limited
ICICI Lombard General
Insurance Company
ICICI Prudential Life
Insurance Company Limited
Life Insurance
Corporation of India
ICICI Prudential Life
Insurance Company Limited
ICICI Securities Limited
ICICI Prudential
Asset Management
Company Limited
ICICI Bank Canada
ICICI Lombard General
Insurance Company Limited
Associate
Subsidiary
Subsidiary
Others
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
1 Ceased to be related party effective from May 7, 2018.
May 6, 2019
86
Salient terms of
contracts/ transactions
Outstanding balance
at March 31, 2019.
Maintained for normal
banking transactions
Outstanding balance
at March 31, 2019.
Maintained for normal
banking transactions
Interest on bonds at
applicable rates
Interest on term
deposits at applicable
coupon rates
Commission for
corporate agency
services to solicit and
procure the sale and
distribution of the
policies
Outsourcing of
services and
resources
Merchant
management fee
Staff welfare insurance
at competitive market
rates
Insurance policy for
retail loan borrowers
Dividend on equity
shares
Dividend on equity
shares
` in million
1,357.6
18,228.8
9,300.6
5,856.4
675.8
11,111.8
1,827.9
9,760.2
1,276.7
5,327.1
4,109.9
1,287.2
3,597.0
904.9
3,719.6
1,939.6
1,656.5
1,373.6
1,269.2
Girish Chandra Chaturvedi
Chairman
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS ANNEXURE C
FORM NO. MGT-9
Extract of Annual Return
as on the financial year ended on March 31, 2019
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the
Companies (Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS
CIN
Registration Date
Name of the Company
L65190GJ1994PLC021012
January 5, 1994
ICICI Bank Limited
Category/Sub-Category of the Company
Company limited by shares/Indian Non-Government Company
Address of the Registered office and
contact details
ICICI Bank Tower
Near Chakli Circle
Old Padra Road, Vadodara - 390 007
Gujarat, India
Tel.: +91-265-6722239
Email : companysecretary@icicibank.com
Whether listed company
Yes
Name, Address and Contact details of
Registrar and Transfer Agent, if any
3i Infotech Limited
International Infotech Park
Tower# 5, 3rd Floor
Vashi Railway Station Complex
Vashi, Navi Mumbai - 400 703
Maharashtra, India
Tel. : +91-22-7123 8000
Fax : +91-22-7123 8098
Email : investor@icicibank.com
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the Company shall be stated:
Sr. No.
1
Name and Description of main
products/services
Banking and Financial Services
NIC Code of the
product/service
64191
% to total turnover
of the Company
100%
The Bank is a publicly held banking company engaged in providing a wide range of banking and financial services
including retail banking, corporate banking and treasury operations.
87
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Name and address of the Company
CIN/GLN*
Holding/
Subsidiary/
Associate
Subsidiary
Company
% of
shares
held
100.00%
Applicable
Section
2(87)
Subsidiary
Company
100.00%
2(87)
U65922MH1999PLC120106 Subsidiary
100.00%
2(87)
Company
Subsidiary
Company
100.00%
2(87)
U65990MH2000PLC124773 Subsidiary
100.00%
2(87)
Company
L67200MH2000PLC129408 Subsidiary
55.87%
2(87)
Company
U99999DL1993PLC054135 Subsidiary
51.00%
2(87)
Company
L66010MH2000PLC127837 Subsidiary
52.87%
2(87)
Company
ICICI Bank Canada
150 Ferrand Drive
Suite 1200, Toronto, ON M3C 3E5
Canada
ICICI Bank UK PLC
Registered Office:
One Thomas More Square
Five Thomas More
Street London
E1W 1YN
ICICI Home Finance Company Limited
Registered Office:
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
ICICI International Limited
Registered Office:
IFS Court,Twenty Eight, Cybercity
Ebene, Mauritius
ICICI Investment Management Company
Limited
Registered Office:
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
ICICI Lombard General Insurance
Company Limited
Registered Office:
ICICI Lombard House
414 Veer Savarkar Marg
Near Siddhivinayak Temple
Prabhadevi
Mumbai 400 025
ICICI Prudential Asset Management
Company Limited
Registered Office:
12th floor, Narain Manzil
23, Barakhamba Road
New Delhi 110 001
ICICI Prudential Life Insurance
Company Limited
Registered Office:
ICICI PruLife Towers
1089, Appasaheb Marathe Marg
Prabhadevi
Mumbai 400 025
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
88
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS Name and address of the Company
CIN/GLN*
Holding/
Subsidiary/
Associate
U66000MH2009PLC191935 Subsidiary
Company
% of
shares
held
100.00%
Applicable
Section
2(87)
Sr.
No.
9.
10.
11.
12.
13.
14.
15.
16.
17.
ICICI Prudential Pension Funds
Management Company Limited
Registered Office:
ICICI Prulife Towers
1089, Appasaheb Marathe Marg
Prabhadevi
Mumbai 400 025
ICICI Prudential Trust Limited
Registered Office:
12th floor, Narain Manzil
23, Barakhamba Road
New Delhi 110 001
ICICI Securities Limited
Registered Office:
ICICI Centre
H. T. Parekh Marg
Churchgate
Mumbai 400 020
ICICI Securities Holding Inc.
Registered Office:
251 Little Falls Drive
Wilmington, DE 19808
United States of America
ICICI Securities Inc.
251 Little Falls Drive
Wilmington, DE 19808
United States of America
ICICI Securities Primary Dealership
Limited
Registered Office:
ICICI Centre
H. T. Parekh Marg, Churchgate
Mumbai 400 020
ICICI Trusteeship Services Limited
Registered Office:
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
ICICI Venture Funds Management
Company Limited
Registered Office:
ICICI Venture House, Ground Floor
Appasaheb Marathe Marg Prabhadevi
Mumbai 400 025
Arteria Technologies Private Limited@
Registered Office:
Unit No.11, 1st Floor, Innovator
International Tech Park Limited
Bangalore - 560 066
U74899DL1993PLC054134 Subsidiary
50.80%
2(87)
Company
L67120MH1995PLC086241 Subsidiary
79.22%
2(87)
Company
Subsidiary
Company
100.00%
2(87)
Subsidiary
Company
100.00%
2(87)
U72900MH1993PLC131900 Subsidiary
100.00%
2(87)
Company
U65991MH1999PLC119683 Subsidiary
100.00%
2(87)
Company
U72200MH1989PLC166901 Subsidiary
100.00%
2(87)
Company
U72900KA2007PTC041911 Associate
Company
19.98%
2(6)
89
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS Sr.
No.
18.
19.
20.
21.
22.
23.
24.
Name and address of the Company
India Infradebt Limited
Registered Office:
The Capital, 'B' Wing, #1101-A
Bandra Kurla Complex
Mumbai - 400 051
ICICI Merchant Services Private Limited
Registered Office:
74, Kalpataru Square
Off Andheri Kurla Road
Kondivita Lane
Andheri (East)
Mumbai – 400 059
I-Process Services (India) Private Limited
Registered Office:
Unit No. 602, 6th Floor,
“CENTRE POINT”, Andheri-Kurla Road
J.B. Nagar, Andheri (East)
Mumbai - 400 059
NIIT Institute of Finance Banking and
Insurance Training Limited
Registered Office:
8, Balaji Estate, First Floor
Guru Ravi Das Marg, Kalkaji
New Delhi 110 019
Rajasthan Asset Management Company
Private Limited#
Registered Office:
7th Floor, Ganga Heights
Bapu Nagar, Tonk Road
Jaipur, Rajasthan – 302 015
OTC Exchange of India Limited#
Registered Office:
92-93 Maker Tower F, Cuffe Parade
Mumbai 400 005
Falcon Tyres Limited#
Registered Office:
K R S Road, Metagalli
Mysore, Karnataka 570 016
CIN/GLN*
Holding/
Subsidiary/
Associate
U65923MH2012PLC237365 Associate
Company
% of
shares
held
42.33%
Applicable
Section
2(6)
U74140MH2009PTC194399 Associate
Company
19.01%
2(6)
U72900MH2005PTC152504 Associate
Company
19.00%
2(6)
U80903DL2006PLC149721 Associate
Company
18.79%
2(6)
U65999RJ2002PTC017380 Associate
Company
24.30%
2(6)
U67120MH1990NPL058298 Associate
Company
20.00%
2(6)
L25114KA1973PLC002455 Associate
Company
26.39%
2(6)
* CIN has been mentioned for Indian subsidiaries/Associate Companies.
@ w.e.f. May 29, 2018
# These companies are not considered as associates in the financial statements, in accordance with the provisions of AS 23 on
‘Accounting for Investments in Associates in Consolidated Financial Statements’
90
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
IV. SHAREHOLDING PATTERN (Equity Share Capital Break-up as percentage of Total Equity)
(i) Category-wise Shareholding
No. of Shares held at the beginning of the year
(April 1, 2018)
No. of Shares held at the end of the year
(March 31, 2019)
Demat
Physical
Total
% of
Total
Shares
Demat
Physical
Total
% of
Total
Shares
%
change
during
the
year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sr.
No.
Category of
shareholders
A
Promoters
(1) Indian
a) Individual / HUF
b) Central Govt
c) State Govt(s)
d) Bodies Corp.
e) Banks/FI
f) Any Other
Sub-total (A)(1)
(2) Foreign
a) NRIs -
Individuals
b) O ther -
Individuals
b) Bodies Corp.
d) Banks/FI
e) Any Other
Sub-total (A)(2)
Total Shareholding
of Promoter (A)
= (A)(1)+(A)(2)
B
Public Shareholding
(1) Institutions
a) Mutual Funds/UTI 1,104,410,402
51,765 1,104,462,167
17.18 1,351,905,866
8,756 1,351,914,622
20.97
3.79
b) Banks/Financial
Institutions
c) Central Govt/
State Govt(s)
d) Venture Capital
Funds
e) Insurance
Companies
g) Foreign Venture
Capital Funds
h) Other (specify)
Foreign Banks
FII - DR
Provident Funds/
Pension Funds
Alternate
Investment Fund
2,996,700
75,104
3,071,804
0.05
1,014,877
70,219
1,085,096
0.02
(0.03)
10,880,378
428
10,880,806
0.17
16,033,568
428
16,033,996
0.25
0.08
0
0
0
-
0
0
0
-
-
f) FIIs/FPIs
2,342,948,530
30,646 2,342,979,176
36.45 2,082,826,274
15,366 2,082,841,640
32.31
863,752,987
1,060
863,754,047
13.44 772,314,294
1,060
772,315,354
11.98
0
0
0
825,008
1,045,546
0
0
0
220,538
825,008
1,045,546
385,700
292,600
292,600
-
-
0.02
0.01
52,643,783
0.82
62,358,629
1,920,162
0.03
10,999,750
62,358,629
0.97
0.15
10,999,750
0.17
0.14
0
0
0
220,538
385,700
52,643,783
1,920,162
0
0
0
(1.46)
(4.14)
-
-
-
(0.00)
-
-
0.02
0.00
Sub-total (B)(1)
4,380,159,180
984,011 4,381,143,191
68.16 4,297,966,396
920,837 4,298,887,233
66.69
(1.47)
91
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
(2) Non-Institutions
a) Bodies
Corporate
i) Indian
ii) Overseas
b) Individuals
i) Individual
shareholders
holding
nominal share
capital upto
`1 lakh
ii) Individual
shareholders
holding
nominal
share capital
in excess of
`1 lakh
c) Others (specify)
NBFCs
registered with
RBI
Foreign
Nationals
Non-Resident
Indians
Clearing
Members
HUF
Foreign
Companies
Foreign Bodies –
DR
IEPF
Sr.
No.
Category of
shareholders
No. of Shares held at the beginning of the year
(April 1, 2018)
No. of Shares held at the end of the year
(March 31, 2019)
Demat
Physical
Total
% of
Total
Shares
Demat
Physical
Total
% of
Total
Shares
%
change
during
the
year
100,056,844
1,123,487
101,180,331
1.57 116,086,821
687,940
116,774,761
0
3,300
3,300
0.00
0
3,300
3,300
1.81
0.00
0.24
-
263,137,793 23,169,117
286,306,910
4.45 262,503,589 18,528,994
281,032,583
4.36
(0.09)
57,165,593
309,622
57,475,215
0.89
79,032,844
158,927
79,191,771
1.23
0.34
Trusts
2,535,352
1,550
2,536,902
948,746
0
948,746
0.01
0.04
6,547,817
0
6,547,817
5,364,019
55,902
5,419,921
0.10
0.08
0.09
0.04
116,622
0
116,622
0.00
63,090
0
63,090
0.00
(0.00)
18,526,666
332,942
18,859,608
0.29
19,855,429
278,555
20,133,984
0.31
0.02
13,480,657
50
13,480,707
7,003,579
34,500
7,038,079
0.21
0.11
19,950,547
50
19,950,597
6,947,257
30,068
6,977,325
0.31
0.11
0.10
(0.00)
0
155,019
155,019
0.00
0
155,019
155,019
0.00
-
294,358
4,735,293
0
0
294,358
4,735,293
0.00
0.07
639,204
6,038,327
0
0
639,204
6,038,327
0.01
0.09
8.42
0.01
0.02
0.75
Sub-total (B)(2)
468,001,503 25,129,587
493,131,090
7.67 523,028,944 19,898,755
542,927,699
Total Public
Shareholding (B) =
(B)(1)+(B)(2)
C
Shares held
by Custodian
for GDRs & ADRs
4,848,160,683 26,113,598 4,874,274,281
75.83 4,820,995,340 20,819,592 4,841,814,932
75.11
(0.72)
1,553,716,495
0 1,553,716,495
24.17 1,604,424,721
0 1,604,424,721
24.89
0.72
Grand Total (A+B+C) 6,401,877,178 26,113,598 6,427,990,776 100.00 6,425,420,061 20,819,592 6,446,239,653
100.00
Percentages have been rounded off to the nearest decimals
92
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
(ii) Shareholding of Promoters
N.A. – ICICI Bank Limited does not have any promoters.
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)
N.A. – ICICI Bank Limited does not have any promoters.
(iv) Shareholding of top ten shareholders (other than Directors, Promoters and Deutsche Bank Trust Company
Americas as Depositary of ADS holders)
Sr.
No.
1
Name of the shareholders
Life Insurance Corporation of India
At the beginning of the year
January 18, 2019 Decrease
January 25, 2019 Decrease
February 01, 2019 Decrease
February 08, 2019 Decrease
February 15, 2019 Decrease
February 22, 2019 Decrease
March 01, 2019 Decrease
March 08, 2019 Decrease
March 15, 2019 Decrease
March 22, 2019 Decrease
March 30, 2019 Decrease
At the end of the year
2 HDFC Trustee Co Ltd (Various Mutual Fund
Accounts)/HDFC Large Cap Fund
At the beginning of the year
April 06, 2018 Increase
April 13, 2018 Increase
April 20, 2018 Decrease
April 27, 2018 Decrease
May 04, 2018 Decrease
May 11, 2018 Decrease
May 18, 2018 Decrease
May 25, 2018 Increase
June 01, 2018 Increase
June 08, 2018 Increase
June 15, 2018 Increase
June 22, 2018 Increase
June 30, 2018 Decrease
July 06, 2018 Increase
July 13, 2018 Increase
July 20, 2018 Increase
July 27, 2018 Decrease
August 03, 2018 Increase
August 10, 2018 Decrease
August 17, 2018 Decrease
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
% of total
shares of the
Company
No. of shares
% of total
shares of the
Company
603,252,345
9,497,260
12,126,068
7,279,934
1,573,515
8,030,249
6,977,149
14,944,179
6,791,881
10,316,683
9,011,400
7,479,940
275,843,678
57,664
729,993
50,250
1,262,996
927,589
9,469,800
309,132
633,799
31,889
5,330,008
115,966
558,265
8,882
1,031,434
1,541,124
8,494
26,017
61,831
190,075
63,253
9.38
0.15
0.19
0.11
0.02
0.12
0.11
0.23
0.11
0.16
0.14
0.12
4.29
0.00
0.01
0.00
0.02
0.01
0.15
0.00
0.01
0.00
0.08
0.00
0.01
0.00
0.02
0.02
0.00
0.00
0.00
0.00
0.00
603,252,345
593,755,085
581,629,017
574,349,083
572,775,568
564,745,319
557,768,170
542,823,991
536,032,110
525,715,427
516,704,027
509,224,087
509,224,087
275,843,678
275,901,342
276,631,335
276,581,085
275,318,089
274,390,500
264,920,700
264,611,568
265,245,367
265,277,256
270,607,264
270,723,230
271,281,495
271,272,613
272,304,047
273,845,171
273,853,665
273,827,648
273,889,479
273,699,404
273,636,151
9.38
9.22
9.03
8.92
8.89
8.77
8.66
8.42
8.32
8.16
8.02
7.90
7.90
4.29
4.29
4.30
4.30
4.28
4.27
4.12
4.12
4.13
4.13
4.21
4.21
4.22
4.22
4.23
4.26
4.26
4.26
4.26
4.25
4.25
93
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the shareholders
August 24, 2018 Decrease
August 27, 2018 Increase
August 31, 2018 Decrease
September 05, 2018 Decrease
September 07, 2018 Decrease
September 14, 2018 Decrease
September 21, 2018 Increase
September 29, 2018 Increase
October 05, 2018 Increase
October 12, 2018 Decrease
October 19, 2018 Decrease
October 26, 2018 Increase
November 02, 2018 Increase
November 09, 2018 Increase
November 16, 2018 Decrease
November 23, 2018 Decrease
November 30, 2018 Decrease
December 07, 2018 Increase
December 14, 2018 Increase
December 21, 2018 Decrease
December 28, 2018 Increase
December 31, 2018 Increase
January 04, 2019 Increase
January 11, 2019 Decrease
January 18, 2019 Increase
January 25, 2019 Increase
February 01, 2019 Increase
February 08, 2019 Increase
February 15, 2019 Increase
February 22, 2019 Increase
March 01, 2019 Increase
March 08, 2019 Decrease
March 15, 2019 Decrease
March 22, 2019 Increase
March 30, 2019 Increase
At the end of the year
3 Dodge & Cox International Stock Fund
At the beginning of the year
April 20, 2018 Increase
April 27, 2018 Increase
May 25, 2018 Increase
August 24, 2018 Decrease
August 27, 2018 Decrease
94
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
166,163
141,408
66,335
1,324,699
296,284
2,908,875
13,864
923,713
355,021
289,534
623,884
1,022,940
873,009
7,035
2,586,318
4,035,447
460,608
308,649
369,963
880,398
14,632
513,908
5,594
742,221
19,027
12,317
31,271
339,843
1,453,691
1,000,839
1,272,773
225,288
1,162,727
310,502
142,780
% of total
shares of the
Company
0.00
0.00
0.00
0.02
0.00
0.05
0.00
0.01
0.01
0.00
0.01
0.02
0.01
0.00
0.04
0.06
0.01
0.00
0.01
0.01
0.00
0.01
0.00
0.01
0.00
0.00
0.00
0.01
0.02
0.02
0.02
0.00
0.02
0.00
0.00
No. of shares
273,469,988
273,611,396
273,545,061
272,220,362
271,924,078
269,015,203
269,029,067
269,952,780
270,307,801
270,018,267
269,394,383
270,417,323
271,290,332
271,297,367
268,711,049
264,675,602
264,214,994
264,523,643
264,893,606
264,013,208
264,027,840
264,541,748
264,547,342
263,805,121
263,824,148
263,836,465
263,867,736
264,207,579
265,661,270
266,662,109
267,934,882
267,709,594
266,546,867
266,857,369
267,000,149
267,000,149
% of total
shares of the
Company
4.25
4.25
4.25
4.23
4.23
4.18
4.18
4.19
4.20
4.20
4.19
4.20
4.21
4.21
4.17
4.11
4.10
4.11
4.11
4.10
4.10
4.11
4.11
4.10
4.10
4.10
4.10
4.10
4.12
4.14
4.16
4.15
4.14
4.14
4.14
4.14
388,897,176
13,922,482
10,130,118
3,561,500
10,952,040
1,034,560
6.05
0.22
0.16
0.06
0.17
0.02
388,897,176
402,819,658
412,949,776
416,511,276
405,559,236
404,524,676
6.05
6.27
6.42
6.48
6.30
6.29
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the shareholders
August 31, 2018 Decrease
September 05, 2018 Decrease
September 07, 2018 Decrease
September 14, 2018 Decrease
September 21, 2018 Decrease
September 29, 2018 Decrease
October 05, 2018 Decrease
November 09, 2018 Decrease
November 23, 2018 Decrease
November 30, 2018 Decrease
December 07, 2018 Decrease
December 14, 2018 Decrease
December 21, 2018 Decrease
December 28, 2018 Decrease
December 31, 2018 Decrease
January 04, 2019 Decrease
January 11, 2019 Decrease
January 18, 2019 Decrease
January 25, 2019 Decrease
4
March 15, 2019 Decrease
March 22, 2019 Decrease
At the end of the year
SBI Mutual Fund/SBI Dual Advantage Fund
and Other Various Fund Accounts
At the beginning of the year
April 06, 2018 Increase
April 13, 2018 Increase
April 20, 2018 Increase
April 27, 2018 Increase
May 04, 2018 Increase
May 11, 2018 Decrease
May 18, 2018 Increase
May 25, 2018 Decrease
June 01, 2018 Increase
June 08, 2018 Increase
June 15, 2018 Increase
June 22, 2018 Increase
June 30, 2018 Increase
July 06, 2018 Increase
July 13, 2018 Increase
July 20, 2018 Increase
July 27, 2018 Decrease
August 03, 2018 Increase
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
3,083,800
430,300
2,669,100
4,560,060
6,322,840
13,915,047
4,031,953
5,171,900
10,975,611
18,102,298
4,956,334
20,107,969
11,452,240
3,130,837
3,249,600
4,023,774
7,311,737
11,095,713
832,594
6,438,313
8,233,380
133,169,518
759,139
2,320,740
608,348
1,780,448
1,667,876
2,754,895
668,838
641,092
267,741
3,832,479
1,488,261
99,431
582,892
1,934,642
718,523
954,569
71,145
3,193,731
% of total
shares of the
Company
0.05
0.01
0.04
0.07
0.10
0.22
0.06
0.08
0.17
0.28
0.08
0.31
0.18
0.05
0.05
0.06
0.11
0.17
0.01
0.10
0.13
2.07
0.01
0.04
0.01
0.03
0.03
0.04
0.01
0.01
0.00
0.06
0.02
0.00
0.01
0.03
0.01
0.01
0.00
0.05
No. of shares
401,440,876
401,010,576
398,341,476
393,781,416
387,458,576
373,543,529
369,511,576
364,339,676
353,364,065
335,261,767
330,305,433
310,197,464
298,745,224
295,614,387
292,364,787
288,341,013
281,029,276
269,933,563
269,100,969
262,662,656
254,429,276
254,429,276
133,169,518
133,928,657
136,249,397
136,857,745
138,638,193
140,306,069
137,551,174
138,220,012
137,578,920
137,846,661
141,679,140
143,167,401
143,266,832
143,849,724
145,784,366
146,502,889
147,457,458
147,386,313
150,580,044
% of total
shares of the
Company
6.24
6.23
6.19
6.12
6.02
5.80
5.74
5.66
5.49
5.21
5.13
4.82
4.64
4.59
4.54
4.48
4.36
4.19
4.18
4.08
3.95
3.95
2.07
2.08
2.12
2.13
2.16
2.18
2.14
2.15
2.14
2.14
2.20
2.23
2.23
2.24
2.27
2.28
2.29
2.29
2.34
95
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the shareholders
August 10, 2018 Increase
August 17, 2018 Increase
August 24, 2018 Decrease
August 27, 2018 Increase
August 31, 2018 Decrease
September 05, 2018 Decrease
September 07, 2018 Increase
September 14, 2018 Increase
September 21, 2018 Increase
September 29, 2018 Increase
October 05, 2018 Decrease
October 12, 2018 Increase
October 19, 2018 Increase
October 26, 2018 Increase
November 02, 2018 Increase
November 09, 2018 Increase
November 16, 2018 Decrease
November 23, 2018 Increase
November 30, 2018 Increase
December 07, 2018 Increase
December 14, 2018 Decrease
December 21, 2018 Increase
December 28, 2018 Increase
December 31, 2018 Increase
January 04, 2019 Increase
January 11, 2019 Increase
January 18, 2019 Increase
January 25, 2019 Increase
February 01, 2019 Increase
February 08, 2019 Decrease
February 15, 2019 Increase
February 22, 2019 Increase
March 01, 2019 Increase
March 08, 2019 Decrease
March 15, 2019 Increase
March 22, 2019 Increase
March 30, 2019 Increase
At the end of the year
ICICI Prudential Mutual Fund (Various
Mutual Fund Accounts)
At the beginning of the year
April 06, 2018 Increase
April 13, 2018 Increase
5
96
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
51,074
453,915
936,187
124,244
807,334
2,560,218
240,247
665,572
630,109
204,728
626,895
666,265
217,828
5,192,136
8,145,857
619,526
4,655,790
903,713
447,006
4,772,772
720,750
477,072
156,655
157,503
624,346
67,669
3,016,509
965,718
2,708,700
1,399,125
631,705
162,339
1,174,449
680,795
153,857
946,059
323,086
% of total
shares of the
Company
0.00
0.01
0.01
0.00
0.01
0.04
0.00
0.01
0.01
0.00
0.01
0.01
0.00
0.08
0.13
0.01
0.07
0.01
0.01
0.07
0.01
0.01
0.00
0.00
0.01
0.00
0.05
0.01
0.04
0.02
0.01
0.00
0.02
0.01
0.00
0.01
0.01
No. of shares
150,631,118
151,085,033
150,148,846
150,273,090
149,465,756
146,905,538
147,145,785
147,811,357
148,441,466
148,646,194
148,019,299
148,685,564
148,903,392
154,095,528
162,241,385
162,860,911
158,205,121
159,108,834
159,555,840
164,328,612
163,607,862
164,084,934
164,241,589
164,399,092
165,023,438
165,091,107
168,107,616
169,073,334
171,782,034
170,382,909
171,014,614
171,176,953
172,351,402
171,670,607
171,824,464
172,770,523
173,093,609
173,093,609
% of total
shares of the
Company
2.34
2.35
2.33
2.34
2.32
2.28
2.29
2.30
2.31
2.31
2.30
2.31
2.31
2.39
2.52
2.53
2.46
2.47
2.48
2.55
2.54
2.55
2.55
2.55
2.56
2.56
2.61
2.62
2.67
2.64
2.65
2.66
2.67
2.66
2.67
2.68
2.69
2.69
163,223,945
6,608,800
5,869,259
2.54
0.10
0.09
163,223,945
169,832,745
175,702,004
2.54
2.64
2.73
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the shareholders
April 20, 2018 Increase
April 27, 2018 Decrease
May 04, 2018 Increase
May 11, 2018 Decrease
May 18, 2018 Decrease
May 25, 2018 Decrease
June 01, 2018 Decrease
June 08, 2018 Decrease
June 15, 2018 Decrease
June 22, 2018 Increase
June 30, 2018 Increase
July 06, 2018 Increase
July 13, 2018 Increase
July 20, 2018 Decrease
July 27, 2018 Decrease
August 03, 2018 Decrease
August 10, 2018 Decrease
August 17, 2018 Decrease
August 24, 2018 Decrease
August 27, 2018 Decrease
August 31, 2018 Decrease
September 05, 2018 Decrease
September 07, 2018 Increase
September 14, 2018 Increase
September 21, 2018 Increase
September 29, 2018 Decrease
October 05, 2018 Decrease
October 12, 2018 Decrease
October 19, 2018 Increase
October 26, 2018 Decrease
November 02, 2018 Decrease
November 09, 2018 Increase
November 16, 2018 Increase
November 23, 2018 Decrease
November 30, 2018 Increase
December 07, 2018 Increase
December 14, 2018 Increase
December 21, 2018 Decrease
December 28, 2018 Decrease
December 31, 2018 Increase
January 04, 2019 Increase
January 11, 2019 Increase
January 18, 2019 Increase
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
184,687
271,906
1,227,045
4,596,787
5,834,201
3,701,164
6,650,295
5,093,392
542,495
2,723,206
606,074
8,864,540
4,282,426
178,004
676,231
7,780,027
6,517,591
204,181
1,386,738
42,955
8,825,033
198,224
1,113
4,402
632,247
3,155,992
477,055
1,298,367
1,949,111
454,647
2,686,017
5,103
9,727
117,611
797,026
2,694,752
2,686,663
388,877
97,486
10,576
1,917,261
343,847
3,123,050
% of total
shares of the
Company
0.00
0.00
0.02
0.07
0.09
0.06
0.10
0.08
0.01
0.04
0.01
0.14
0.07
0.00
0.01
0.12
0.10
0.00
0.02
0.00
0.14
0.00
0.00
0.00
0.01
0.05
0.01
0.02
0.03
0.01
0.04
0.00
0.00
0.00
0.01
0.04
0.04
0.01
0.00
0.00
0.03
0.01
0.05
No. of shares
175,886,691
175,614,785
176,841,830
172,245,043
166,410,842
162,709,678
156,059,383
150,965,991
150,423,496
153,146,702
153,752,776
162,617,316
166,899,742
166,721,738
166,045,507
158,265,480
151,747,889
151,543,708
150,156,970
150,114,015
141,288,982
141,090,758
141,091,871
141,096,273
141,728,520
138,572,528
138,095,473
136,797,106
138,746,217
138,291,570
135,605,553
135,610,656
135,620,383
135,502,772
136,299,798
138,994,550
141,681,213
141,292,336
141,194,850
141,205,426
143,122,687
143,466,534
146,589,584
% of total
shares of the
Company
2.74
2.73
2.75
2.68
2.59
2.53
2.43
2.35
2.34
2.38
2.39
2.53
2.59
2.59
2.58
2.46
2.36
2.36
2.33
2.33
2.20
2.19
2.19
2.19
2.20
2.15
2.15
2.13
2.16
2.15
2.11
2.11
2.11
2.10
2.12
2.16
2.20
2.19
2.19
2.19
2.22
2.23
2.28
97
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the shareholders
January 25, 2019 Increase
February 01, 2019 Increase
February 08, 2019 Decrease
February 15, 2019 Decrease
February 22, 2019 Decrease
6
March 01, 2019 Increase
March 08, 2019 Decrease
March 15, 2019 Decrease
March 22, 2019 Decrease
March 30, 2019 Decrease
At the end of the year
Aditya Birla Sun Life Trustee Private Limited
At the beginning of the year
April 06, 2018 Increase
April 13, 2018 Decrease
April 20, 2018 Decrease
April 27, 2018 Increase
May 04, 2018 Decrease
May 11, 2018 Decrease
May 18, 2018 Decrease
May 25, 2018 Decrease
June 01, 2018 Decrease
June 08, 2018 Increase
June 15, 2018 Increase
June 22, 2018 Increase
June 30, 2018 Decrease
July 06, 2018 Increase
July 13, 2018 Decrease
July 20, 2018 Increase
July 27, 2018 Decrease
August 03, 2018 Increase
August 10, 2018 Increase
August 17, 2018 Increase
August 24, 2018 Increase
August 31, 2018 Decrease
September 05, 2018 Decrease
September 07, 2018 Increase
September 14, 2018 Decrease
September 21, 2018 Decrease
September 29, 2018 Decrease
October 05, 2018 Decrease
October 12, 2018 Increase
October 19, 2018 Increase
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
48,666
1,235,796
40,661
39,571
44,023
711,842
2,515,709
166,662
534,933
508,130
99,464,487
6,210,285
182,000
180,665
250,000
749,100
1,416,750
600,000
4,245,449
2,695,307
275,122
744,000
273,750
413,326
550,000
405,000
339,212
4,760,000
9,774,092
405,665
5,552,667
2,186,896
1,487,250
1,970,750
728,750
63,250
182,000
1,559,000
286,342
501,250
2,958,500
% of total
shares of the
Company
0.00
0.02
0.00
0.00
0.00
0.01
0.04
0.00
0.01
0.01
1.55
0.10
0.00
0.00
0.00
0.01
0.02
0.01
0.07
0.04
0.00
0.01
0.00
0.01
0.01
0.01
0.01
0.07
0.15
0.01
0.09
0.03
0.02
0.03
0.01
0.00
0.00
0.02
0.00
0.01
0.05
No. of shares
146,638,250
147,874,046
147,833,385
147,793,814
147,749,791
148,461,633
145,945,924
145,779,262
145,244,329
144,736,199
144,736,199
99,464,487
105,674,772
105,492,772
105,312,107
105,562,107
104,813,007
103,396,257
102,796,257
98,550,808
95,855,501
96,130,623
96,874,623
97,148,373
96,735,047
97,285,047
96,880,047
97,219,259
92,459,259
102,233,351
102,639,016
108,191,683
110,378,579
108,891,329
106,920,579
107,649,329
107,586,079
107,404,079
105,845,079
105,558,737
106,059,987
109,018,487
% of total
shares of the
Company
2.28
2.30
2.29
2.29
2.29
2.30
2.26
2.26
2.25
2.25
2.25
1.55
1.64
1.64
1.64
1.64
1.63
1.61
1.60
1.53
1.49
1.49
1.51
1.51
1.50
1.51
1.51
1.51
1.44
1.59
1.60
1.68
1.72
1.69
1.66
1.67
1.67
1.67
1.64
1.64
1.65
1.69
98
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the shareholders
October 26, 2018 Increase
November 02, 2018 Decrease
November 09, 2018 Increase
November 16, 2018 Increase
November 23, 2018 Increase
November 30, 2018 Increase
December 07, 2018 Increase
December 14, 2018 Increase
December 21, 2018 Increase
December 28, 2018 Increase
January 04, 2019 Increase
January 11, 2019 Increase
January 18, 2019 Increase
January 25, 2019 Increase
February 01, 2019 Decrease
February 08, 2019 Increase
February 15, 2019 Increase
February 22, 2019 Increase
7
March 01, 2019 Decrease
March 08, 2019 Increase
March 15, 2019 Decrease
March 22, 2019 Decrease
March 30, 2019 Decrease
At the end of the year
Reliance Capital Trustee Co Ltd/Reliance
ETF/Reliance Emergent India Fund
(Various Fund Accounts)
At the beginning of the year
April 06, 2018 Decrease
April 13, 2018 Decrease
April 20, 2018 Decrease
April 27, 2018 Decrease
May 04, 2018 Decrease
May 11, 2018 Increase
May 18, 2018 Increase
May 25, 2018 Increase
June 01, 2018 Increase
June 08, 2018 Increase
June 15, 2018 Increase
June 22, 2018 Increase
June 30, 2018 Decrease
July 06, 2018 Increase
July 13, 2018 Increase
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
2,330,042
28,714
984,000
1,570,750
895,500
3,215,000
1,487,750
5,674,900
1,062,638
379,750
2,621,750
375,000
291,500
1,039,500
1,060,000
474,250
1,054,656
168,400
1,000,000
534,200
18,378
161,619
134,279
101,446,335
2,052,671
15,819,250
251,836
1,964,455
31,011
2,972,999
847,355
3,718,223
5,055,968
4,595,451
5,320,162
4,954,992
6,660,520
8,883,426
4,487,574
% of total
shares of the
Company
0.04
0.00
0.02
0.02
0.01
0.05
0.02
0.09
0.02
0.01
0.04
0.01
0.00
0.02
0.02
0.01
0.02
0.00
0.02
0.01
0.00
0.00
0.00
No. of shares
111,348,529
111,319,815
112,303,815
113,874,565
114,770,065
117,985,065
119,472,815
125,147,715
126,210,353
126,590,103
129,211,853
129,586,853
129,878,353
130,917,853
129,857,853
130,332,103
131,386,759
131,555,159
130,555,159
131,089,359
131,070,981
130,909,362
130,775,083
130,775,083
% of total
shares of the
Company
1.73
1.73
1.74
1.77
1.78
1.83
1.86
1.94
1.96
1.97
2.01
2.01
2.02
2.03
2.02
2.02
2.04
2.04
2.03
2.03
2.03
2.03
2.03
2.03
1.58
0.03
0.25
0.00
0.03
0.00
0.05
0.01
0.06
0.08
0.07
0.08
0.08
0.10
0.14
0.07
101,446,335
99,393,664
83,574,414
83,322,578
81,358,123
81,327,112
84,300,111
85,147,466
88,865,689
93,921,657
98,517,108
103,837,270
108,792,262
102,131,742
111,015,168
115,502,742
1.58
1.55
1.30
1.30
1.26
1.26
1.31
1.32
1.38
1.46
1.53
1.61
1.69
1.59
1.73
1.80
99
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the shareholders
July 20, 2018 Increase
July 27, 2018 Decrease
August 03, 2018 Increase
August 10, 2018 Decrease
August 17, 2018 Decrease
August 24, 2018 Decrease
August 27, 2018 Increase
August 31, 2018 Increase
September 05, 2018 Increase
September 07, 2018 Increase
September 14, 2018 Increase
September 21, 2018 Increase
September 29, 2018 Increase
October 05, 2018 Increase
October 12, 2018 Increase
October 19, 2018 Decrease
October 26, 2018 Decrease
November 02, 2018 Decrease
November 09, 2018 Increase
November 16, 2018 Decrease
November 23, 2018 Decrease
November 30, 2018 Decrease
December 07, 2018 Increase
December 14, 2018 Increase
December 21, 2018 Decrease
December 28, 2018 Increase
December 31, 2018 Increase
January 04, 2019 Increase
January 11, 2019 Increase
January 18, 2019 Decrease
January 25, 2019 Decrease
February 01, 2019 Decrease
February 08, 2019 Increase
February 15, 2019 Increase
February 22, 2019 Increase
March 01, 2019 Decrease
March 08, 2019 Increase
March 15, 2019 Decrease
March 22, 2019 Decrease
March 30, 2019 Increase
At the end of the year
100
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
5,498,693
14,114,434
168,080
3,379,784
3,245
1,458,768
2,676,706
9,236,521
1,457,993
2,273,077
772,187
2,536,042
6,567,394
85,582
1,696,587
3,453,955
1,103,191
4,049,762
1,053,611
3,917,720
1,730,819
758,607
258,241
2,006,884
4,751,856
46,331
69,149
114,857
534,910
2,416,534
1,745,324
2,575,797
8,636,667
1,006,618
39,404
111,377
78,288
2,518,888
782,869
1,720,724
% of total
shares of the
Company
0.09
0.22
0.00
0.05
0.00
0.02
0.04
0.14
0.02
0.04
0.01
0.04
0.10
0.00
0.03
0.05
0.02
0.06
0.02
0.06
0.03
0.01
0.00
0.03
0.07
0.00
0.00
0.00
0.01
0.04
0.03
0.04
0.13
0.02
0.00
0.00
0.00
0.04
0.01
0.03
No. of shares
121,001,435
106,887,001
107,055,081
103,675,297
103,672,052
102,213,284
104,889,990
114,126,511
115,584,504
117,857,581
118,629,768
121,165,810
127,733,204
127,818,786
129,515,373
126,061,418
124,958,227
120,908,465
121,962,076
118,044,356
116,313,537
115,554,930
115,813,171
117,820,055
113,068,199
113,114,530
113,183,679
113,298,536
113,833,446
111,416,912
109,671,588
107,095,791
115,732,458
116,739,076
116,778,480
116,667,103
116,745,391
114,226,503
113,443,634
115,164,358
115,164,358
% of total
shares of the
Company
1.88
1.66
1.66
1.61
1.61
1.59
1.63
1.77
1.80
1.83
1.84
1.88
1.98
1.99
2.01
1.96
1.94
1.88
1.89
1.83
1.81
1.79
1.80
1.83
1.76
1.76
1.76
1.76
1.77
1.73
1.70
1.66
1.80
1.81
1.81
1.81
1.81
1.77
1.76
1.79
1.79
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the shareholders
8 Government of Singapore
At the beginning of the year
April 06, 2018 Increase
April 13, 2018 Decrease
April 20, 2018 Decrease
April 27, 2018 Increase
May 04, 2018 Decrease
May 11, 2018 Decrease
May 18, 2018 Decrease
May 25, 2018 Decrease
June 01, 2018 Decrease
June 08, 2018 Increase
June 15, 2018 Increase
June 22, 2018 Increase
June 30, 2018 Increase
July 06, 2018 Decrease
July 20, 2018 Decrease
July 27, 2018 Increase
August 03, 2018 Decrease
August 10, 2018 Decrease
August 17, 2018 Decrease
August 24, 2018 Increase
August 27, 2018 Increase
August 31, 2018 Increase
September 05, 2018 Increase
September 07, 2018 Increase
September 14, 2018 Increase
September 21, 2018 Increase
September 29, 2018 Decrease
October 05, 2018 Decrease
October 12, 2018 Increase
October 19, 2018 Increase
November 02, 2018 Increase
November 09, 2018 Increase
November 16, 2018 Increase
November 23, 2018 Increase
November 30, 2018 Increase
December 07, 2018 Increase
December 14, 2018 Increase
December 21, 2018 Increase
December 28, 2018 Decrease
December 31, 2018 Increase
January 04, 2019 Increase
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
% of total
shares of the
Company
No. of shares
% of total
shares of the
Company
101,380,233
3,529,872
1,126,939
1,598,915
157,183
1,563,865
8,487,422
1,102,651
13,318
1,695,245
2,833,318
1,358,851
3,312,440
1,992,577
37,383
254,852
1,865,647
1,323,700
342,374
4,123,838
245,236
444,906
953,900
285,932
236,264
260,813
483,649
985,610
1,004,301
535,763
124,648
515,161
99,703
27,248
279,802
1,380,352
206,324
31,859
388,054
20,391
6,107
239,130
1.58
0.05
0.02
0.02
0.00
0.02
0.13
0.02
0.00
0.03
0.04
0.02
0.05
0.03
0.00
0.00
0.03
0.02
0.01
0.06
0.00
0.01
0.01
0.00
0.00
0.00
0.01
0.02
0.02
0.01
0.00
0.01
0.00
0.00
0.00
0.02
0.00
0.00
0.01
0.00
0.00
0.00
101,380,233
104,910,105
103,783,166
102,184,251
102,341,434
100,777,569
92,290,147
91,187,496
91,174,178
89,478,933
92,312,251
93,671,102
96,983,542
98,976,119
98,938,736
98,683,884
100,549,531
99,225,831
98,883,457
94,759,619
95,004,855
95,449,761
96,403,661
96,689,593
96,925,857
97,186,670
97,670,319
96,684,709
95,680,408
96,216,171
96,340,819
96,855,980
96,955,683
96,982,931
97,262,733
98,643,085
98,849,409
98,881,268
99,269,322
99,248,931
99,255,038
99,494,168
1.58
1.63
1.61
1.59
1.59
1.57
1.43
1.42
1.42
1.39
1.44
1.46
1.51
1.54
1.54
1.53
1.56
1.54
1.54
1.47
1.48
1.48
1.50
1.50
1.51
1.51
1.52
1.50
1.49
1.50
1.50
1.50
1.51
1.51
1.51
1.53
1.53
1.54
1.54
1.54
1.54
1.54
101
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the shareholders
January 11, 2019 Decrease
January 18, 2019 Decrease
January 25, 2019 Increase
February 01, 2019 Decrease
February 08, 2019 Increase
February 22, 2019 Increase
March 01, 2019 Decrease
March 08, 2019 Decrease
March 15, 2019 Increase
March 22, 2019 Increase
March 30, 2019 Increase
At the end of the year
Kotak Capital Fund (Various
Mutual Fund Accounts)
At the beginning of the year
April 06, 2018 Decrease
April 13, 2018 Decrease
April 20, 2018 Decrease
April 27, 2018 Decrease
9
May 04, 2018 Increase
May 11, 2018 Increase
May 18, 2018 Increase
May 25, 2018 Increase
June 01, 2018 Increase
June 08, 2018 Decrease
June 15, 2018 Increase
June 22, 2018 Increase
June 30, 2018 Increase
July 06, 2018 Increase
July 13, 2018 Increase
July 20, 2018 Decrease
July 27, 2018 Increase
August 03, 2018 Decrease
August 10, 2018 Decrease
August 17, 2018 Decrease
August 24, 2018 Increase
August 27, 2018 Increase
August 31, 2018 Increase
September 05, 2018 Increase
September 07, 2018 Increase
September 14, 2018 Increase
September 21, 2018 Increase
September 29, 2018 Increase
102
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
1,358,519
183,618
230,357
3,526,370
733,930
1,522,955
347,549
270,458
445,857
716,624
689,854
% of total
shares of the
Company
0.02
0.00
0.00
0.05
0.01
0.02
0.01
0.00
0.01
0.01
0.01
63,578,593
1,533,503
3,282,080
2,712,206
3,023,328
680,887
551,225
1,352,969
393,096
553,472
45,835
1,924,819
2,506,199
3,024,791
4,884,891
4,259,199
425,115
1,454,669
3,949,193
6,076,506
1,177,672
2,948,070
420,348
326,108
1,122,173
1,005,279
1,028,444
1,040,108
3,282,590
0.99
0.02
0.05
0.04
0.05
0.01
0.01
0.02
0.01
0.01
0.00
0.03
0.04
0.05
0.08
0.07
0.01
0.02
0.06
0.09
0.02
0.05
0.01
0.01
0.02
0.02
0.02
0.02
0.05
No. of shares
98,135,649
97,952,031
98,182,388
94,656,018
95,389,948
96,912,903
96,565,354
96,294,896
96,740,753
97,457,377
98,147,231
98,147,231
63,578,593
62,045,090
58,763,010
56,050,804
53,027,476
53,708,363
54,259,588
55,612,557
56,005,653
56,559,125
56,513,290
58,438,109
60,944,308
63,969,099
68,853,990
73,113,189
72,688,074
74,142,743
70,193,550
64,117,044
62,939,372
65,887,442
66,307,790
66,633,898
67,756,071
68,761,350
69,789,794
70,829,902
74,112,492
% of total
shares of the
Company
1.52
1.52
1.52
1.47
1.48
1.50
1.50
1.49
1.50
1.51
1.52
1.52
0.99
0.97
0.91
0.87
0.82
0.84
0.84
0.86
0.87
0.88
0.88
0.91
0.95
0.99
1.07
1.14
1.13
1.15
1.09
1.00
0.98
1.02
1.03
1.04
1.05
1.07
1.08
1.10
1.15
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the shareholders
October 05, 2018 Decrease
October 12, 2018 Decrease
October 19, 2018 Increase
October 26, 2018 Increase
November 02, 2018 Increase
November 09, 2018 Increase
November 16, 2018 Decrease
November 23, 2018 Increase
November 30, 2018 Increase
December 07, 2018 Increase
December 14, 2018 Increase
December 21, 2018 Decrease
December 28, 2018 Increase
December 31, 2018 Decrease
January 04, 2019 Decrease
January 11, 2019 Increase
January 18, 2019 Increase
January 25, 2019 Increase
February 01, 2019 Increase
February 08, 2019 Increase
February 15, 2019 Increase
February 22, 2019 Decrease
March 01, 2019 Increase
March 08, 2019 Decrease
March 15, 2019 Decrease
March 22, 2019 Decrease
March 30, 2019 Decrease
At the end of the year
10 National Pension System Trust
At the beginning of the year
April 06, 2018 Increase
April 13, 2018 Increase
April 20, 2018 Increase
May 04, 2018 Increase
May 11, 2018 Decrease
May 25, 2018 Increase
June 01, 2018 Increase
June 08, 2018 Increase
June 15, 2018 Increase
June 22, 2018 Increase
June 30, 2018 Increase
July 06, 2018 Increase
July 13, 2018 Increase
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
54,629
814,993
1,835,350
389,317
2,137,988
536,403
2,815,951
127,213
3,172,150
484,826
1,357,822
891,788
926,598
16,256
229,661
177,736
341,593
2,112,842
5,005,926
541,839
1,933,023
624,999
1,742,455
4,434,202
261,251
447,209
1,188,750
52,548,930
222,940
478,015
1,280
170,459
2,771
231,600
158,800
299,075
222,575
293,058
109,473
595,188
90,600
% of total
shares of the
Company
0.00
0.01
0.03
0.01
0.03
0.01
0.04
0.00
0.05
0.01
0.02
0.01
0.01
0.00
0.00
0.00
0.01
0.03
0.08
0.01
0.03
0.01
0.03
0.07
0.00
0.01
0.02
0.82
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
No. of shares
74,057,863
73,242,870
75,078,220
75,467,537
77,605,525
78,141,928
75,325,977
75,453,190
78,625,340
79,110,166
80,467,988
79,576,200
80,502,798
80,486,542
80,256,881
80,434,617
80,776,210
82,889,052
87,894,978
88,436,817
90,369,840
89,744,841
91,487,296
87,053,094
86,791,843
86,344,634
85,155,884
85,155,884
52,548,930
52,771,870
53,249,885
53,251,165
53,422,036
53,419,265
53,650,865
53,809,665
54,108,740
54,331,315
54,624,373
54,733,846
55,329,034
55,419,634
% of total
shares of the
Company
1.15
1.14
1.17
1.17
1.21
1.21
1.17
1.17
1.22
1.23
1.25
1.24
1.25
1.25
1.25
1.25
1.25
1.29
1.36
1.37
1.40
1.39
1.42
1.35
1.35
1.34
1.32
1.32
0.82
0.82
0.83
0.83
0.83
0.83
0.83
0.84
0.84
0.84
0.85
0.85
0.86
0.86
103
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the shareholders
July 20, 2018 Increase
July 27, 2018 Increase
August 10, 2018 Increase
August 17, 2018 Increase
August 24, 2018 Increase
August 27, 2018 Increase
August 31, 2018 Increase
September 05, 2018 Increase
September 07, 2018 Increase
September 14, 2018 Increase
September 21, 2018 Increase
September 29, 2018 Increase
October 05, 2018 Increase
October 12, 2018 Increase
October 19, 2018 Increase
October 26, 2018 Increase
November 02, 2018 Increase
November 09, 2018 Decrease
November 16, 2018 Decrease
November 23, 2018 Increase
November 30, 2018 Increase
December 07, 2018 Increase
December 14, 2018 Increase
December 21, 2018 Increase
December 28, 2018 Increase
December 31, 2018 Increase
January 04, 2019 Increase
January 11, 2019 Increase
January 18, 2019 Increase
January 25, 2019 Increase
February 01, 2019 Increase
February 08, 2019 Increase
February 15, 2019 Increase
February 22, 2019 Increase
March 01, 2019 Increase
March 08, 2019 Increase
March 15, 2019 Increase
March 22, 2019 Increase
March 30, 2019 Increase
At the end of the year
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
118,882
121,669
4,373
1,855
102,811
21,025
71,153
49,127
69,874
71,027
56,465
50,010
375,565
8,177
62,582
5,527
308,632
74,987
38,051
126,590
65,064
54,269
657,858
958,295
75,200
21,710
239,998
83,881
123,399
613,110
154,267
655,557
111,792
602,769
367,750
140,997
119,577
81,030
243,318
% of total
shares of the
Company
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.01
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.01
0.00
0.01
0.01
0.00
0.00
0.00
0.00
No. of shares
55,538,516
55,660,185
55,664,558
55,666,413
55,769,224
55,790,249
55,861,402
55,910,529
55,980,403
56,051,430
56,107,895
56,157,905
56,533,470
56,541,647
56,604,229
56,609,756
56,918,388
56,843,401
56,805,350
56,931,940
56,997,004
57,051,273
57,709,131
58,667,426
58,742,626
58,764,336
59,004,334
59,088,215
59,211,614
59,824,724
59,978,991
60,634,548
60,746,340
61,349,109
61,716,859
61,857,856
61,977,433
62,058,463
62,301,781
62,301,781
% of total
shares of the
Company
0.86
0.87
0.87
0.87
0.87
0.87
0.87
0.87
0.87
0.87
0.87
0.87
0.88
0.88
0.88
0.88
0.88
0.88
0.88
0.88
0.89
0.89
0.90
0.91
0.91
0.91
0.92
0.92
0.92
0.93
0.93
0.94
0.94
0.95
0.96
0.96
0.96
0.96
0.97
0.97
1 Top ten shareholders (on basis of PAN) of the Bank as on March 31, 2019 has been considered for the above disclosure.
2 The above mentioned details have been provided by our RTA on the basis of weekly beneficial position received from Depositories
and relied upon.
104
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
(v) Shareholding of Directors and Key Managerial Personnel
Sr.
No.
Name of the Directors
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
% of total
shares of the
Company
No. of shares
% of total
shares of the
Company
2
1
Lalit Kumar Chandel1
At December 4, 2018
At the end of the year
Dileep Choksi
At the beginning of the year
At the end of the year
Rama Bijapurkar2
At January 14, 2019
At the end of the year
M. K. Sharma3
At the beginning of the year
At June 30, 2018
5 (a) Chanda Kochhar4
4
3
At the beginning of the year
April 9, 2018 ESOS Allotment
April 12, 2018 ESOS Allotment
April 26, 2018 ESOS Allotment
June 7, 2018 ESOS Allotment
July 2, 2018 ESOS Allotment
July 16, 2018 ESOS Allotment
July 19, 2018 ESOS Allotment
September 24, 2018 ESOS Allotment
September 27, 2018 ESOS Allotment
At October 4, 2018
7
6
5 (b) Chanda Kochhar (as joint holder)4
At the beginning of the year
At October 4, 2018
N. S. Kannan5
At the beginning of the year
At June 18, 2018
Sandeep Bakhshi6
At July 31, 2018
August 23, 2018 Transfer
November 16, 2018 ESOS Allotment
December 17, 2018 Market Sale
March 26, 2019 Market Sale
At the end of the year
Anup Bagchi
At the beginning of the year
April 26, 2018 ESOS Allotment
May 11, 2018 Market Sale
March 18, 2019 ESOS Allotment
8
6
0.00
2,750
0.00
2,600
0.00
55,000
0.00
2,597,787
20,000
25,000
20,000
100,000
100,000
100,000
103,050
25,000
239,250
0.04
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
825
0.00
468,737
0.01
6
6
2,750
2,750
2,600
2,600
55,000
55,000
2,597,787
2,617,787
2,642,787
2,662,787
2,762,787
2,862,787
2,962,787
3,065,837
3,090,837
3,330,087
3,330,087
825
825
468,737
468,737
452,805
50
100,000
18,250
10,000
0
107,250
107,250
288,750
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
452,805
452,755
552,755
534,505
524,505
524,505
0
107,250
0
288,750
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.04
0.04
0.04
0.04
0.04
0.04
0.05
0.05
0.05
0.05
0.05
0.00
0.00
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.00
0.00
0.00
0.00
105
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
Name of the Directors
March 26, 2019 Market Sale
At the end of the year
9 (a) Vishakha Mulye (as first holder)
At the beginning of the year
December 6, 2018 ESOS Allotment
March 14, 2019 Market Sale
March 15, 2019 Market Sale
March 18, 2019 Market Sale
March 22, 2019 ESOS Allotment
March 28, 2019 Market Sale
March 29, 2019 Market Sale
At the end of the year
9 (b) Vishakha Mulye (as joint holder)
10
At the beginning of the year
At the end of the year
Vijay Chandok
At the beginning of the year
April 2, 2018 ESOS Allotment
April 12, 2018 ESOS Allotment
May 15, 2018 Market Sale
June 11, 2018 ESOS Allotment
July 26, 2018 ESOS Allotment
August 2, 2018 Market Sale
August 6, 2018 Market Sale
August 8, 2018 Market Sale
August 9, 2018 Market Sale
August 17, 2018 Market Sale
August 20, 2018 ESOS Allotment
August 23, 2018 ESOS Allotment
September 7, 2018 Market Sale
September 21, 2018 Market Sale
October 8, 2018 ESOS Allotment
October 11, 2018 ESOS Allotment
October 15, 2018 ESOS Allotment
October 17, 2018 ESOS Allotment
October 22, 2018 ESOS Allotment
October 29, 2018 Market Sale
October 30, 2018 Market Sale
November 1, 2018 ESOS Allotment
November 5, 2018 ESOS Allotment
November 7, 2018 Market Sale
November 12, 2018 ESOS Allotment
November 14, 2018 Market Sale
106
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
No. of shares
288,750
% of total
shares of the
Company
0.00
No. of shares
0
0
% of total
shares of the
Company
0.00
0.00
838,612
123,750
50,000
50,000
25,000
233,750
10,000
25,000
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
838,612
962,362
912,362
862,362
837,362
0.01
0.01
0.01
0.01
0.01
1,071,112 0.02
1,061,112
0.02
0.02
1,036,112
1,036,112 0.02
1,375
0.00
28,300
2,400
4,500
3,150
2,400
4,900
10,000
10,000
2,500
10,000
5,000
4,500
4,400
5,000
2,000
2,300
4,500
2,300
6,900
2,200
12,950
7,000
6,600
8,900
1,000
4,400
5,000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,375
1,375
28,300
30,700
35,200
32,050
34,450
39,350
29,350
19,350
16,850
6,850
1,850
6,350
10,750
5,750
3,750
6,050
10,550
12,850
19,750
21,950
9,000
2,000
8,600
17,500
16,500
20,900
15,900
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Shareholding at the
beginning of the year
Cumulative Shareholding
during the Year
Sr.
No.
Name of the Directors
November 15, 2018 Market Sale
November 19, 2018 ESOS Allotment
November 19, 2018 Market Sale
November 28, 2018 Market Sale
December 3, 2018 ESOS Allotment
December 12, 2018 Market Sale
December 14, 2018 Market Sale
December 17, 2018 ESOS Allotment
December 17, 2018 Market Sale
December 18, 2018 Market Sale
December 20, 2018 ESOS Allotment
December 24, 2018 ESOS Allotment
December 26, 2018 Market Sale
December 28, 2018 Market Sale
December 31, 2018 Market Sale
January 2, 2019 Market Sale
February 6, 2019 Market Sale
February 7, 2019 Market Sale
February 11, 2019 ESOS Allotment
February 14, 2019 Market Sale
February 19, 2019 Market Sale
February 21, 2019 ESOS Allotment
February 21, 2019 Market Sale
February 25, 2019 ESOS Allotment
March 1, 2019 Market Sale
March 4, 2019 ESOS Allotment
March 5, 2019 Market Sale
March 6, 2019 Market Sale
March 7, 2019 Market Sale
March 11, 2019 Market Sale
March 12, 2019 Market Sale
March 14, 2019 ESOS Allotment
March 22, 2019 ESOS Allotment
March 26, 2019 Market Sale
March 28, 2019 Market Sale
At the end of the year
No. of shares
10,000
2,100
2,500
5,500
12,500
1,450
1,500
17,200
3,000
6,550
30,500
2,200
2,500
3,000
3,000
5,000
10,000
5,000
22,900
3,000
10,000
2,200
10,000
8,600
3,000
2,200
10,000
10,000
3,000
5,000
3,300
4,100
6,000
4,000
6,100
% of total
shares of the
Company
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
No. of shares
5,900
8,000
5,500
0
12,500
11,050
9,550
26,750
23,750
17,200
47,700
49,900
47,400
44,400
41,400
36,400
26,400
21,400
44,300
41,300
31,300
33,500
23,500
32,100
29,100
31,300
21,300
11,300
8,300
3,300
0
4,100
10,100
6,100
0
0
1 w.e.f. December 4, 2018
2 w.e.f. January 14, 2019
3 upto June 30, 2018
4 upto October 4, 2018
5 upto June 18, 2018
6 w.e.f. July 31, 2018
None of the other Directors held any shares during fiscal 2019.
The cumulative shareholding column reflects the balance as on day end.
% of total
shares of the
Company
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
107
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Sr.
No.
1
2
3
Name of Key Managerial Personnel
Rakesh Jha
Chief Financial Officer
At the beginning of the year
April 23, 2018 ESOS Allotment
April 26, 2018 ESOS Allotment
December 20, 2018 Market Sale
December 24, 2018 Market Sale
December 27, 2018 Market Sale
January 10, 2019 ESOS Allotment
January 31, 2019 ESOS Allotment
At the end of the year
P. Sanker1
Company Secretary
At the beginning of the year
At July 27, 2018
Ranganath Athreya2
Company Secretary
At July 28, 2018
February 21, 2019 ESOS Allotment
March 29, 2019 Market Sale
At the end of the year
Shareholding at the
beginning of the year
No. of shares
% of total
shares of the
Company
Cumulative Shareholding
during the Year
% of total
shares of the
Company
No. of shares
14,850
23,000
21,000
15,000
15,000
15,000
30,000
35,000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
14,850
37,850
58,850
43,850
28,850
13,850
43,850
78,850
78,850
38,500
0.00
38,500
38,500
110
1,500
1,500
0.00
0.00
0.00
110
1,610
110
110
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1 Upto July 27, 2018
2 w.e.f. July 28, 2018
The cumulative shareholding column reflects the balance as on day end.
V.
INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
` in crore
Unsecured
Loans
Deposits
Total
Indebtedness
Secured
Loans
excluding
deposits
Indebtedness at the beginning of the financial year
i) Principal Amount
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i+ii+iii)
Change in Indebtedness during the financial year
(refer Note 1 & 2)
• Addition
• Reduction
Net Change
Indebtedness at the end of the financial year
i) Principal Amount
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i+ii+iii)
16,456.25 166,402.38
-
2,389.66
168,792.03
-
411.77
16,868.02
6,171.63
16,456.25
(10,284.62)
8,364.52
15,618.55
(7,254.03)
6,171.63
-
2.47
6,174.10
159,148.35
-
2,840.08
161,988.42
182,858.62
-
-
-
-
2,801.43
- 185,660.05
- 14,536.15
- 32,074.80
- (17,538.65)
165,319.97
-
-
-
- 2,842.55
168,162.52
-
108
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Data is pertaining to Schedule 4 borrowings under "Secured Loans/Unsecured loans".
Notes:
1 Movement in short-term market borrowing is shown on net basis.
2 Uamortised premium and accrual of discount is included under "Addition" row.
3 Principal amount for secured and unsecured loan consists of schedule 4 borrowings balance.
4
Secured loans include borrowings under Collateralised Borrowing and Lending Obligation, and transactions under Liquidity Adjustment
Facility, Marginal Standing Facility and REPO (including Tri-party Repo).
5 Being a banking company, there are no public deposits.
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Wholetime Directors and/or Manager:
Sr.
No.
1
2
3
4
5
Particulars of Remuneration
Chanda
Kochhar
Sandeep
Bakhshi
N. S.
Kannan
Vishakha
Mulye
Vijay
Chandok
Anup
Bagchi
Total (`)
Amount in `
Gross Salary:
(a) Salary as per provisions
contained in section 17(1) of
the Income-tax Act, 1961
Salary and Allowances for
fiscal 2019 - (A)
Bonus paid in fiscal 2019 (B)
(b) Value of perquisites u/s 17(2)
of the Income-tax Act, 1961
Perquisites - (C)
(c) Profits in lieu of salary
under section 17(3) of the
Income-tax Act, 1961
Stock Option (Perquisite on
Employee Stock Option exercised
in fiscal 2019)
Sweat Equity
Commission (as % of Profit/Others)
Others
(A)+(B) +(C) Total remuneration
paid in fiscal 2019 (excludes
perquisites on Stock Options
exercised in Fiscal 2019 as
mentioned in point 2)
Ceiling as per the Act 1
60,781,868 38,275,925 8,648,435 40,497,479 35,035,973 37,660,740 220,900,420
–
–
–
–
–
–
–
11,087,205 6,210,549 2,677,264
6,721,122 7,775,115 3,906,732 38,377,987
–
–
–
–
–
–
–
226,395,700 20,123,000
–
–
–
–
–
–
0 92,475,351 28,625,627 86,821,351 454,441,029
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
71,869,073 44,486,474 11,325,699 47,218,601 42,811,088 41,567,472 259,278,407
1
Being a Banking Company, the provisions of the Banking Regulation Act, 1949 apply to the Bank and the remuneration of every
wholetime Director is subject to the approval of RBI. The remuneration is however well within the limits prescribed under the
Companies Act, 2013.
2 The performance bonus payable in fiscal 2019 (pertaining to fiscal 2018) is pending RBI approvals.
3
Last working date of Chanda Kochhar with the Bank was October 4, 2018. Her remuneration includes amount pertaining to full and final
settlement given to her in October 2018.
Sandeep Bakhshi assumed office as Chief Operating Officer (Designate) effective June 19, 2018. RBI approved his appointment as
Wholetime Director designated as Chief Operating Officer effective July 31, 2018. He was subsequently appointed as Managing
Director & CEO as per RBI approval effective October 15, 2018.
4
5 N.S. Kannan was with the Bank till June 18, 2018.
109
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
B. Remuneration to other Directors
Sr.
No.
1.
Name of Directors
Independent Directors
G. C. Chaturvedi1,3
M. K. Sharma4
Rama Bijapurkar5
Uday Chitale1
Dileep C. Choksi1
Neelam Dhawan1
Radhakrishnan Nair1
Hari L. Mundra6
V. K. Sharma
B. Sriram5
Tushaar Shah7
M. D. Mallya8
Total (1)
2. Other Non-Executive Directors9
Total (2)
Total (1)+(2)
Ceiling as per the Act#
Fee for attending
Board/
Committee
meetings1
Commission2
Others*
Total (`)
Amount in `
–
–
–
2,02,740
10,00,000
216,438
–
–
10,00,000
–
10,00,000
–
34,19,178
–
34,19,178
11,00,000
18,50,000
3,50,000
44,50,000
46,50,000
26,50,000
48,00,000
7,00,000
13,00,000
4,50,000
2,00,000
–
2,25,00,000
–
2,25,00,000
24,74,465
40,83,334
–
–
–
–
–
–
–
–
–
–
6,557,799
35,74,465
59,33,334
3,50,000
46,52,740
56,50,000
28,66,438
48,00,000
7,00,000
23,00,000
4,50,000
12,00,000
–
32,476,977
–
65,57,799
–
32,476,977
1 The independent Directors were paid sitting fees for its meeting held on September 12, 2018
2 Commission pertaining to fiscal 2018, paid in fiscal 2019
3 w.e.f. July 1, 2018
4 upto June 30, 2018
5 w.e.f. January 14, 2019
6
w.e.f. October 26, 2018
7 upto May 2, 2018
8 w.e.f. May 29, 2018 and upto October 4, 2018
9 Government Nominee Director is only entitled to reimbursement of expenses for attending Board/Committee Meetings.
* Gross amount paid as remuneration to G. C. Chaturvedi for the period July 17, 2018 to March 31, 2019 and to M. K. Sharma for the
#
period May 1, 2017 to June 30, 2018.
Being a Banking Company, the provisions of the Banking Regulation Act, 1949 apply to the Bank. The remuneration is however well
within the limits prescribed under the Companies Act, 2013.
110
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD
Sr.
No.
1
2
3
4
5
Particulars of Remuneration
Gross Salary
(a) Salary as per provisions contained in
section 17(1) of the Income-tax Act, 1961
Salary and Allowances for Fiscal 2019 - (A)
Bonus Paid in fiscal 2019 - (B)
(b) Value of perquisites u/s 17(2) of the
Income-tax Act, 1961
Perquisites – (C)
(c) Profits in lieu of salary under section 17(3)
of the Income-tax Act, 1961
Stock Option (Perquisite on Employee Stock
Option exercised in fiscal 2019)
Sweat Equity
Commission (as % of Profit/Others)
Others
(A)+(B) + (C) Total Remuneration paid
in Fiscal 2019 (excludes Perquisites on
Stock Options exercised in fiscal 2019 as
mentioned in point 2)
Rakesh Jha
Chief Financial
Officer
Ranganath
Athreya1
Company
Secretary
Amount in `
P. Sanker2
Company
Secretary
Total (`)
25,385,796
11,518,203
14,891,692
2,890,620
20,504,200
5,824,728
60,781,688
20,233,551
4,411,048
1,202,688
2,627,226
–
–
–
17,591,780
90,375
2,030,100
–
–
–
–
–
–
–
–
–
8,240,962
–
19,712,255
–
–
–
41,315,047
18,985,000
28,956,154
89,256,201
1 Ranganath Athreya was appointed Company Secretary effective July 28, 2018. The salary mentioned above is for FY2018-19.
2 P. Sanker was the Company Secretary of the Bank till July 27, 2018. The salary mentioned above is for FY2018-19.
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type
A. COMPANY
Penalty
Punishment
Compounding
B. DIRECTORS
Penalty
Punishment
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding
May 6, 2019
Section of the
Companies Act
Brief Description
Details of Penalty/
Punishment/
Compounding fees
imposed
Authority
[RD / NCLT/
Court]
Appeal made,
if any
(give Details)
None
None
None
G. C. Chaturvedi
Chairman
111
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
ANNEXURE D
DIVIDEND DISTRIBUTION POLICY
1.
Introduction
ICICI Bank Limited (the Bank or ICICI Bank) is a public
company incorporated under the Companies Act, 1956
and licensed as a bank under the Banking Regulation
Act, 1949. The Bank has been making profits since
inception and has been paying equity share dividends
in accordance with the guidelines of Reserve Bank of
India (RBI) and Securities and Exchange Board of India
(SEBI), Companies Act, 1956, Companies Act, 2013
and Banking Regulation Act, 1949.
This policy documents the guidelines on payment
of dividends, and sets out the key considerations for
arriving at the dividend payment decision. The Board
will have the flexibility to determine the level of
dividend based on the considerations laid out in the
policy and other relevant developments.
2. Regulatory framework
The Bank while proposing equity share dividend will
ensure compliance with the RBI guidelines relating
to declaration of dividend, capital conservation
requirements under guidelines on Basel III norms
issued by RBI, provisions of the Banking Regulation
Act, 1949, the Securities and Exchange Board of
India (SEBI) (Listing Obligations and Disclosure
Requirements) Regulations, 2015, provisions of
the Companies Act, 2013 and guidelines provided
under the section titled “Dividends” in the Articles of
Association (AOA) of the Bank.
3. Approval process
The Board of Directors of the Bank would take into
account the following aspects while deciding on the
proposal for dividend:
6.
d)
a) profitability and key financial metrics;
the interim dividend paid, if any;
b)
the auditors’ qualifications pertaining to the
c)
statement of accounts, if any;
whether
dividend/coupon
non-equity
preference shares) have been made;
the Bank’s capital position and requirements
as
Adequacy
Assessment Process (ICAAP) projections and
regulatory norms; and
the applicable regulatory requirements
for
(including
instruments
payments
Internal
Capital
capital
per
e)
f)
The dividend decision would be subject
consideration of any other
including, for example:
relevant
to
factors,
•
•
•
External factors including state of the domestic
and global economy, capital market conditions
and dividend policy of competitors;
Tax implications including applicability and rate
of dividend distribution tax;
Shareholder expectations
112
The decision regarding dividend shall be taken only
by the Board at its Meeting and not by a Committee
of the Board or by way of a Resolution passed
by circulation.
Final dividend shall be paid only after approval at
an Annual General Meeting (AGM) of the Bank.
Shareholder approval is not required for payment of
interim dividend.
4. Utilisation of retained earnings
investments
The Bank would utilise the retained earnings for general
corporate purposes, including organic and inorganic
subsidiaries/associates
growth,
in
and/or appropriations/drawdowns as per
the
regulatory framework. The Board may decide to
employ the retained earnings in ensuring maintenance
of an optimal level of capital adequacy, meeting the
Bank’s future growth/expansion plans, other strategic
purposes and/or distribution to shareholders, subject
to applicable regulations.
5. Parameters for various classes of shares
Currently, the Bank has only one class of equity
shareholders. In the absence of any other class of
equity shares and/or equity shares with differential
voting rights, the entire distributable profit for the
purpose of declaration of dividend is considered for
the equity shareholders. The Bank has preference
shares on which a
is
appropriated out of profits.
fixed rate of dividend
Circumstances under which the shareholders may
or may not expect dividend
The Board of the Bank may vary the level of dividend or
not recommend any dividend based on the regulatory
eligibility criteria for recommendation of dividend,
including any regulatory restriction placed on the
Bank on declaration of dividend. There may also be
obligations that the Bank could have undertaken under
the terms of perpetual non-cumulative preference
to
shares or debt capital
applicable regulations which might prohibit the Bank
from declaring dividend in certain circumstances.
instruments pursuant
The Board of the Bank may vary the level of dividend
or not recommend any dividend based on the capital
and reserves position of the Bank. The Board may
recommend lower or no dividends if it is of the view
that there is a need to conserve capital. The Board may
recommend higher dividends, subject to applicable
if the capital and reserves position
regulations,
supports a higher distribution to the shareholders.
7. Review
The dividend policy of the Bank would be reviewed
annually, or earlier if material changes take place in
the applicable regulations.
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
ANNEXURE E
ALWYN D’SOUZA & CO.
Company Secretaries
Annex-103, Dimple Arcade, Asha Nagar, Kandivali (East), Mumbai 400101.
Branch Office: B-002, Gr. Floor, Shreepati-2, Royal Complex, Behind Olympia Tower,
Mira Road (East), Thane-401107; Tel: 022-28125781; Mob: 09820465195;
E-mail: alwyn.co@gmail.com; Website: www.alwynjay.com
CERTIFICATE
[Pursuant to Regulation 34(3) read with Sub Clause 10(i) of Clause C of Schedule V of
Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015]
To,
ICICI Bank Limited
ICICI Bank Tower, Near Chakli Circle,
Old Padra Road, Vadodara,
Gujarat - 390007
Dear Sir/Madam,
I have considered and examined the annual submissions made by each Director of ICICI Bank Limited (“Company”).
On the basis of the documents submitted to me and based on verification of relevant information available in public
domain, I hereby certify that the following Directors on the Board of the Company are not debarred or disqualified from
being appointed or continuing as directors of the Companies by the Securities and Exchange Board of India/Ministry of
Corporate Affairs or any such statutory authority:
Sr. No. Name of Director
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Mr. Girish C. Chaturvedi
Ms. Rama Bijapurkar
Mr. Uday Chitale
Ms. Neelam Dhawan
Mr. S. Madhavan
Mr. Hari L. Mundra
Mr. Radhakrishnan Nair
Mr. B. Sriram
Mr. Lalit Kumar Chandel
Mr. Sandeep Bakhshi
Ms. Vishakha Mulye
Mr. Vijay Chandok
Mr. Anup Bagchi
Place : Mumbai
Date : May 3, 2019
Office Address
Annex-103, Dimple Arcade,
Asha Nagar, Kandivali (East),
Mumbai 400101.
DIN
00110996
00001835
00043268
00871445
06451889
00287029
07225354
02993708
00182667
00109206
00203578
01545262
00105962
Designation
Independent Director
Additional Independent Director
Independent Director
Independent Director
Additional Independent Director
Additional Independent Director
Independent Director
Additional Independent Director
Nominee Director
Managing Director
Wholetime Director
Wholetime Director
Wholetime Director
Alwyn D’Souza & Co.
Company Secretaries
[Alwyn D’Souza, FCS.5559]
[Proprietor]
[Certificate of Practice No.5137]
113
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS ANNEXURE F
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES
A brief outline of the company's CSR policy, including
overview of projects or programs proposed to be undertaken
and a reference to the web-link to the CSR policy and projects
or programs
Corporate Social Responsibility (CSR) has been a
long-standing commitment at ICICI Bank Limited
(ICICI Bank/the Bank). The Bank’s contribution
to social sector development
includes several
pioneering interventions and is implemented through
the involvement of stakeholders within the Bank and
through the broader community. The Bank established
the ICICI Foundation for Inclusive Growth (ICICI
Foundation) in 2008 with a view to significantly expand
the activities in the area of CSR. Over the years, ICICI
Foundation has developed projects in specific areas,
particularly in the area of skill development, and has
built capabilities for direct project implementation
as opposed
to
other organisations.
financial support
to extending
structure,
operating
The CSR Policy of the Bank sets the framework
guiding the Bank’s CSR activities. It outlines the
governance
framework,
monitoring mechanism, and CSR activities that would
be undertaken. The CSR Committee is the governing
body that articulates the scope of CSR activities and
ensures compliance with the CSR policy. The Bank’s
CSR activities are largely focussed in the areas of
education, health, skill development and financial
inclusion and other activities as the Bank may choose
to select in fulfilling its CSR objectives.
The CSR policy was approved by the Committee in
July 2014, and subsequently was put up on the Bank’s
website. Web-link to the Bank’s CSR policy:
https://www.icicibank.com/managed-assets/docs/
about-us/ICICI-Bank-CSR-Policy.pdf
2. The Composition of the CSR Committee
is chaired by an
the
The Bank’s CSR Committee
independent Director. The composition of
Committee is set out below:
• Mr. Radhakrishnan Nair, Chairman
• Mr. Anup Bagchi
• Mr. Uday Chitale (w.e.f. June 30, 2019)
• Ms. Rama Bijapurkar (w.e.f. June 30, 2019)
The functions of the Committee include review of CSR
initiatives undertaken by the ICICI Group and ICICI
Foundation; formulation and recommendation to the
Board of a CSR Policy indicating the activities to be
undertaken by the company and recommendation of
the amount of the expenditure to be incurred on such
activities; reviewing and recommending the annual
CSR plan to the Board; making recommendations to
the Board with respect to the CSR initiatives, policies
and practices of the ICICI Group; monitoring the CSR
activities, implementation of and compliance with
the CSR Policy; and reviewing and implementing, if
required, any other matter related to CSR initiatives
as recommended/suggested by Reserve Bank of
India or any other body.
Average net profit of the company for last three
financial years
The average net profit of the company for the last
three financial years calculated as specified by the
Companies Act, 2013 for fiscal 2019 was ` 59.48 billion.
Prescribed CSR Expenditure (two per cent of the
amount as in item 3 above)
The prescribed CSR expenditure requirement for
fiscal 2019 was ` 1,189.6 million.
3.
4.
5. Details of CSR spent during the financial year
(a) Total amount to be spent for the financial year
Total amount spent towards CSR during fiscal
2019 was ` 922.0 million.
(b) Amount unspent, if any
Amount unspent was ` 267.6 million.
1.
114
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
(c) Manner in which the amount spent during the financial year is detailed in the following table:
2.
Projects or programs
Local area or
1.
other
Specify the
state and district
where projects
or programs was
undertaken
Amount outlay
(budget)
project or
program wise
(` mn)
Amount spent
on the projects
or programs
Sub-heads
Direct
1.
expenditure
on projects or
programs
Overheads
2.
(` mn)
Amount spent
direct or through
implementing
agency
Cumulative
expenditure
upto the
reporting
period
(` mn)
Pan-India
380.0
380.0
2,125.0 Amount spent
Sr.
No.
CSR Project or
activity identified
Sector in which the
project is covered
1
Projects of ICICI
Foundation for
Inclusive Growth
Promoting education,
employment,
enhancing vocational
skills, livelihood
enhancement projects
Rural
development and
related activities
Education &
research
Relief and welfare
in calamity affected
areas
Contribution to relief
fund
5.
Health
Promoting preventive
health care and
sanitation and making
available safe drinking
water
2.
3.
4.
6.
7.
8.
through ICICI
Foundation
for Inclusive
Growth. The
Foundation was
set up in 2008
to focus on
activities in the
area of CSR
4,796.0 Direct & through
Bank’s business
correspondent
network
supported
construction of
toilets, Rubella
vaccination
drive, and
providing safe
drinking water
facilities
100.0 Armed Forces
Flag Day Fund,
Kendriya Sainik
Board
Rural development
Pan-India
100.0
117.4
Promoting education
Chennai
100.0
100.0
159.1 Direct, for
Kerala
-
100.0
176.5 Kerala Chief
setting up a new
university
Minister’s
Distress Relief
Fund
Pan-India
96.4
105.23
105.23 Direct;
Armed forces
welfare
Measures for the
benefit of armed forces
veteran, war widows
and their dependents
Pan-India
50.0
50.0
Financial Literacy
Promoting education
Education
Women empowerment
Pan-India
Pan-India
36.0
35.0
91.2 Disha Trust
16.0
16.0
16.0 Direct;
9.
Miscellaneous
Environmental
sustainability, Swachh
Bharat, reducing
inequalities
–
411.6
18.4
89.7 Direct:
#Education
For Equality
campaign to
promote girl
child education
promoting use
of dustbins,
protection
of trees, and
supporting
socially and
economically
backward rural
households
115
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
6.
In case the company has failed to spend the 2% of
the average net profits of the last three financial
years or any part thereof, the company shall provide
the reasons for not spending the amount in its Board
report.
The amount spent towards CSR during fiscal 2019
was ` 922.0 million, which was 1.6% of the average
net profits of the last three financial years. The Bank’s
CSR spends in fiscal 2017 were 1.8% and in fiscal
2018 were 2.0% of the average net profits of the
preceding three financial years.
The Bank, through its CSR activities, has always
focussed on efforts that can substantially impact the
well-being of the disadvantaged segments of the
population. The endeavour is to have a comprehensive
approach that is meaningful and with a long-term focus
to ensure scalability. Skill-development is a major
requirement for meeting sustainable development
goals of the Indian economy. Towards this objective,
significant efforts have been made to improve skills
of underprivileged youth since fiscal 2014. The ICICI
Foundation for Inclusive Growth (ICICI Foundation)
has driven the skill training efforts through various
initiatives including the ICICI Academy for Skills
(skill academies), Rural Self-Employment Training
Institutes (RSETIs) and the rural initiatives in villages.
During fiscal 2019, a total of 135,000 individuals
received training through the various skill training
initiatives, and of which 63.0% were women.
The skill training facilities were further enhanced
with the introduction of new in-demand courses like
beauty therapist and home health aide at the skill
academies. The total number of courses offered
at the skill academies aggregated 12 and over 50
wide-ranging locally relevant courses were being
offered at the villages. Further, in fiscal 2019 two
new training centres were opened at Gorakhpur
and Dehradun under the ICICI Academy for Skills.
On a cumulative basis, till March 31, 2019, over
400,000 individuals were provided skill training
thus
facilitating employability and ensuring a
meaningful increase in the livelihood of these
individuals. Further, a total of 1,200 villages have
been covered under the rural initiative of ICICI
Foundation. The efforts made in the villages apart
from facilitating job opportunities and marketability,
has also promoted local entrepreneurship including
among women. ICICI Foundation received several
prestigious awards during the year in recognition
of its efforts.
116
Details on skill training activities
Number of individuals
trained in fiscal 2019
- Of which women trainees
Total number of individuals trained
till March 31, 2019
- Of which women trainees
Total number of villages covered
Total number of states covered
135,189
63%
402,755
54%
1,200
29
The Bank also contributed towards other causes
during fiscal 2019 as follows:
• Promoting higher education by supporting the
• Providing
setting up of a new university in Chennai;
to
in
Kerala and contributing to the Chief Minister’s
disaster relief fund;
flood-affected people
relief
• Supporting widows and children of ex-servicemen
by contributing to the army fund;
• Promoting preventive healthcare by supporting
the Rubella vaccination drive in Maharashtra,
encouraging construction of toilets and providing
safe drinking water facilities;
• Driving financial literacy and financial counselling
through a dedicated team;
• #EducationForEquality campaign
to promote
women empowerment.
The Bank initiated a pan-India social awareness
programme to be conducted beginning March 2019
till March 2020. The total amount earmarked for
the social awareness programme is ` 250.0 million.
Since the project began towards the end of the
year, the amount could not be spent in fiscal 2019.
Accordingly, it was not included in the total CSR
spends for fiscal 2019.
7.
A responsibility statement of the CSR Committee
that the implementation and monitoring of CSR
Policy, is in compliance with CSR objectives and
Policy of the company.
The CSR Committee hereby confirms that the
implementation and monitoring of CSR activities is in
compliance with CSR objectives and the CSR Policy
of the company.
Anup Bagchi
Executive Director
May 6, 2019
Radhakrishnan Nair
CSR Committee Chairman
DIRECTORS’ REPORTANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S CERTIFICATE
ON CORPORATE GOVERNANCE
To the Members of ICICI Bank Limited
1.
2.
This certificate is issued in accordance with the terms
of our engagement letter dated 22 October 2018.
We have examined the compliance of conditions of
corporate governance by ICICI Bank Limited (‘the Bank’)
for the year ended on 31 March 2019, as stipulated in
Regulations 17 to 27, clauses (b) to (i) of Regulation
46(2), and paragraphs C, D and E of Schedule V
of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 (‘Listing Regulations’).
Management’s Responsibility
3.
responsibility
The compliance of conditions of corporate
governance is the responsibility of the management.
designing,
This
implementing
operating
effectiveness of internal control to ensure compliance
with the conditions of corporate governance as
stipulated in the Listing Regulations.
the
maintaining
includes
and
to
requirements of
Auditor’s Responsibility
the Listing
Pursuant
the
4.
Regulations, our responsibility
is to express a
reasonable assurance in the form of an opinion as to
whether the Bank has complied with the conditions
of corporate governance, as stated in paragraph 2
above. Our responsibility is limited to examining the
procedures and implementation thereof, adopted
by the Bank for ensuring the compliance with the
conditions of corporate governance. It is neither an
audit nor an expression of opinion on the financial
statements of the Bank.
5.
6.
We have examined the relevant records of the Bank in
accordance with the applicable Generally Accepted
Auditing Standards in India, the Guidance Note on
Certification of Corporate Governance issued by the
Institute of Chartered Accountants of India (‘ICAI’),
and Guidance Note on Reports or Certificates for
Special Purposes issued by the ICAI which requires
that we comply with the ethical requirements of the
Code of Ethics issued by the ICAI.
We have complied with the relevant applicable
requirements of the Standard on Quality Control
(SQC) 1, Quality Control for Firms that Perform Audits
and Reviews of Historical Financial Information, and
Other Assurance and Related Services Engagements.
Opinion
7.
Based on the procedures performed by us and to
the best of our information and according to the
explanations provided to us, in our opinion, the
Bank has complied, in all material respects, with the
conditions of corporate governance, as stipulated
in the Listing Regulations during the year ended 31
March 2019, subject to the findings of the enquiry
report of Hon’ble Mr. Justice (Retd.) B.N Srikrishna,
as described below:
a.
the case of
In
the allegations against
Ms. Chanda Kochhar, the former MD and CEO,
pertaining to conflict of interest in certain
instances prior to 31 March 2018, the enquiry
report of Hon’ble Mr. Justice
(Retd.) B.N
Srikrishna concluded that the former MD and
CEO was in violation of the ICICI Bank Code
of Conduct and its framework for dealing with
conflict of interest, including due disclosure
or recusal requirements. This also constitutes
non-adherence
the
Listing Regulations, which requires the senior
management to make disclosures to the Board
of Directors relating to all material, financial
and commercial transactions, where they have
personal interest that may have a potential
conflict with the interest of the listed entity at
large. The final findings of the enquiry report and
actions taken by the Bank were disclosed to the
stock exchanges and a press release dated 30
January 2019 was also issued by the Bank in this
respect, which is available on the Bank’s website.
to regulation 26(5) of
8.
We 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.
Restriction on use
9.
This certificate is issued solely for the purpose of
complying with the aforesaid regulations and may not
be suitable for any other purpose. Accordingly, we
do not accept or assume any liability or any duty of
care for any other purpose or to any other person to
whom this certificate is shown or into whose hands it
may come, without our prior consent in writing.
For Walker Chandiok & Co LLP
Chartered Accountants
Firm Registration No. 001076N/N500013
Khushroo B. Panthaky
Partner
Membership No.: 042423
UDIN No:19042423AAAABF1088
Place: Mumbai
Date: 06 May 2019
117
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
MANAGEMENT’S DISCUSSION & ANALYSIS
OPERATING ENVIRONMENT
Growth
The growth of India’s Gross Domestic Product (GDP)
was 7.2% in the nine months ended December 31, 2018
(9M-2019), the same level as in fiscal 2018. The Central
Statistical Organisation has estimated that India’s GDP
would grow by 7.0% in fiscal 2019. Investments, as
measured by gross fixed capital formation, have grown
by 10.8% during 9M-2019 compared to 9.3% in fiscal
2018. On a gross value added basis, growth in the
agriculture sector is estimated to be 2.7% in fiscal 2019
compared to 5.0% in fiscal 2018 and in the services sector
to be 7.4% in fiscal 2019 compared to 8.1% in fiscal 2018.
Industrial sector growth is expected to be 7.7% in fiscal
2019 compared to 5.9% in fiscal 2018.
food and
Inflation and interest rates
Inflation as measured by the Consumer Price Index
(CPI) increased in the initial part of the year from 4.3%
in March 2018 to 6.4% in June 2018 and subsequently
declined to 2.9% in March 2019. Core inflation (inflation
excluding
in
March 2018 to 6.4% in June 2018 and eased to 5.0% in
March 2019. The Reserve Bank of India (RBI) increased
the repo rate by 25 basis points each in June 2018 and
August 2018, from 6.0% to 6.5%, and subsequently
reduced the repo rate by 25 basis points in February 2019
to 6.25%. The policy stance was changed from “neutral”
to “calibrated tightening” in October 2018 and again
changed to “neutral” in February 2019.
from 5.4%
increased
fuel)
Financial markets
The Rupee depreciated from ` 65.11 per US dollar at
end-March 2018 to a high of ` 74.33 per US dollar on
October 9, 2018 and subsequently appreciated to ` 69.16
per US dollar at end-March 2019. Since Indian banks are
subject to reserve requirements, with a large part of the
reserves held in government securities, movement in
government bond yields have an impact on the treasury
portfolio. During fiscal 2019, yields on government
securities were volatile particularly in view of tight
liquidity conditions between September-December 2018.
This resulted in significant losses in the treasury book for
most Indian banks during the third quarter of fiscal 2019.
Yields on the 10-year benchmark government bonds
increased from 7.4% at end-March 2018 to over 8.0% in
September 2018, and subsequently declined to 7.4% at
end-March 2019.
Current account and fiscal position
The increase in global crude oil prices in fiscal 2019 led
to an increase in India’s current account deficit to 2.5%
as a proportion of GDP during the nine months ended
December 31, 2018, compared to 1.9% in fiscal 2018.
The fiscal deficit position remained stable at 3.4% of
GDP in fiscal 2019. In the interim budget for fiscal 2020,
the government of India has announced measures that
are expected to stimulate consumption in the Indian
economy. At the same time, the interim budget has a
significant borrowing programme for fiscal 2020, which
could lead to pressures on government bond yields.
118
Banking sector trends
During fiscal 2019, non-food credit grew by 13.3%
at March 29, 2019 while deposits grew by 10.0%.
This resulted in the credit to deposit ratio increasing from
75.5% at March 31, 2018 to 77.7% at end-March 2019.
In terms of sector-wise deployment of credit, credit
growth in the services sector was at 17.8%, in the retail
sector was at 16.4%, in industry was at 6.9% and in
agriculture sector was at 7.9%, as on March 29, 2019.
Additions to non-performing assets moderated during
the nine months ended December 31, 2018. As per RBI’s
Financial Stability Report for December 2018, the gross
non-performing asset ratio for Indian banks declined
from a peak of 11.5% at March 31, 2018 to 10.8% at
September 30, 2018. However, challenges emerged for
the non-banking financial companies (NBFCs) following a
default by a large non-banking financial company engaged
primarily in infrastructure. This resulted in tightening
liquidity conditions and increase in yields on their debt,
leading to refinancing challenges for NBFCs. In a step
towards initiating consolidation in the banking sector,
the government announced the merger of three public
sector banks in fiscal 2019. The merger was effective
from April 1, 2019.
the accounts
referred under
The process of resolution of large stressed accounts
continued. Of
the
Insolvency and Bankruptcy Code (IBC) with the National
Company Law Tribunal (NCLT), as required by the RBI,
five large accounts from the first list were resolved
during the year with the average recovery rate from
these accounts exceeding 44.0%. Additions to the
non-performing pool of banks declined during the year.
However, challenges emerged in a few sectors and
specific corporates/promoter groups during the year.
Provisions made by banks continued to be elevated.
The key regulatory developments impacting banks during
fiscal 2019 were as follows:
•
•
In March 2019, RBI deferred the implementation
of Ind AS till further notice as the legislative
amendments recommended by it were still under
the consideration of the Government of India.
the
the
implementation of
last
RBI deferred
tranche of 0.625% of Capital Conservation Buffer
(CCB) from March 31, 2019 to March 31, 2020.
Accordingly, the minimum capital conservation ratios
as earlier applicable from March 31, 2018 would
now apply from March 31, 2019 till the CCB attains
the level of 2.5% of risk weighted assets (RWA) as
on March 31, 2020. The pre-specified trigger for
loss absorption through conversion/write-down of
Additional Tier 1 instruments shall remain at 5.5%
of RWAs and would increase to 6.125% of RWAs on
March 31, 2020.
•
In September 2018, RBI permitted banks to reckon
an additional 2.0% of their net demand and time
liabilities (NDTL), under Facility to Avail Liquidity
for Liquidity Coverage Ratio (FALLCR) within the
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS mandatory statutory liquidity requirement (SLR), as
level one high quality liquid assets (HQLA) for the
purpose of computing their liquidity coverage ratio
(LCR). This was applicable from October 1, 2018
resulting in a total of 15.0% of NDTL comprising
statutory liquidity ratio securities available for banks
to be recognised as level one HQLA. In April 2019,
RBI permitted a further 2.0% of NDTL to be reckoned
as level one HQLA in a phased manner.
With a view to align the SLR with the LCR
requirement, RBI decided to reduce the SLR by 25
basis points every quarter until the SLR reaches
18.0% of NDTL. The first reduction of 25 basis
points from 19.50% to 19.25% was effective from
January 1, 2019.
With a view to facilitate meaningful restructuring
of micro, small and medium enterprises’ (MSME)
accounts that are stressed, RBI permitted a one-time
restructuring of existing loans to MSMEs that are in
default but ‘standard’ as on January 1, 2019, without
an asset classification downgrade. To be eligible
for the scheme, the aggregate exposure, including
non-fund based facilities of banks and NBFCs, to
a borrower should not exceed ` 250.0 million as
on January 1, 2019. The restructuring will have to
be implemented by March 31, 2020. A provision
of 5.0%, in addition to the provisions already held,
shall be made in respect of accounts restructured
under this scheme.
With a view to facilitate flow of credit to well-rated
NBFCs, in February 2019 RBI revised the risk weights
on exposures to non-deposit taking systemically
important NBFCs. From a uniform risk weight of
100%, RBI allowed rated exposures of banks to these
NBFCs to be risk-weighted as per the rating assigned
by the accredited rating agencies, in a manner
similar to that for corporates. The rated exposures
of banks to all NBFCs excluding Core Investment
Companies (CICs), will now be risk-weighted in a
manner similar to that for corporates. Exposures to
CICs continue to be risk-weighted at 100%.
In February 2019, RBI revised the definition of
bulk deposits (i.e. deposits where banks have the
discretion to offer differential rate of interest) from
single deposit of ` 10.0 million and above to single
deposit of ` 20.0 million and above. Banks are
henceforth required to maintain their bulk deposit
interest rate cards in the core banking system for
supervisory review.
In April 2019, the Supreme Court declared the RBI
circular on revised framework for resolution of
12,
stressed
2018
dated
as unconstitutional. RBI
the process of
issuing revised guidelines.
February
assets
in
is
In November 2018, the Securities and Exchange
Board of India released a framework that requires
a company rated AA and above and with an
•
•
•
•
•
•
outstanding long term borrowing of ` 1.00 billion and
above at March 31 in any given year, to necessarily
raise 25.0% of its incremental borrowings for the
following year through the bond market. This is
effective from April 1, 2019.
Outlook
The Bank believes that the Indian economy has significant
long-term potential, based on its demographic profile,
consumption growth and vast potential for investment.
These factors would drive the long-term growth of the
Indian financial sector. The banking sector is expected to
benefit from the growing formalisation of the economy,
the recently introduced insolvency resolution regime and
the rapid adoption of technology in banking.
STRATEGY
During fiscal 2019, the Bank was focussed on
its
strategic objective of risk calibrated profitable growth.
Core operating profits of the Bank grew by 16.5% during
fiscal 2019. The Bank made progress on increasing the
granularity of its portfolio and enhancing the customer
franchise during the year. Retail loans as a proportion
of total loans increased from 56.6% at March 31, 2018
to 60.1% at March 31, 2019. Including non-fund based
outstanding, retail loans as a proportion of total loans
was 46.9% at March 31, 2019. The Bank continued to
improve the portfolio mix by lending to higher rated
well-established corporates and reduce concentration
risk. The additions to non-performing loans moderated
during the year, while provisions remained elevated.
As a result, the provision coverage ratio improved
substantially. The Bank maintained a strong capital
position with capital adequacy ratios significantly above
regulatory requirements.
Going forward, the Bank’s strategic focus of growing
its core operating profits
in a risk calibrated and
granular manner would continue. The Bank seeks to
build scalable and resilient businesses while operating
within the guardrails of risk management. The Bank
would seek to contain provisions within the levels set
by its enterprise risk management framework. The Bank
would aim to pursue growth in low capital consuming
businesses and further strengthen its liabilities franchise.
A customer-centric approach with ownership of growing
the core operating profit at every level within the
organisation would be an important driver in meeting the
Bank’s strategic objectives.
The Bank would leverage its extensive network with wide
geographical reach, a comprehensive range of products
and services and state-of-the-art technology for providing
superior customer experience. The Bank believes that
there are significant opportunities across customer
segments and their ecosystems. The Bank will aim to
provide a comprehensive suite of financial services while
profitably maximising its share of these opportunities,
including by
into mutually beneficial
partnerships. The Bank is leveraging technology and
into customer needs
insights
analytics
for deeper
entering
119
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS and behaviour and making customer onboarding and
transacting smooth and frictionless. The Bank would
continue to invest in technologies to provide an edge in
its offerings to customers.
The Bank aims to be the trusted financial services
provider of choice for its customers and deliver products
and services that create value. The Bank will focus on
consistent execution of strategy, enhancing stakeholder
confidence and shareholder value.
STANDALONE FINANCIALS AS PER
INDIAN GAAP
SUMMARY
Core operating profit increased by 16.5% from ` 189.39
billion in fiscal 2018 to ` 220.72 billion in fiscal 2019
primarily due to a 17.3% increase in net interest income
and a 15.9% increase in fee income, offset, in part, by
a 15.2% increase in operating expenses. Income from
treasury-related activities decreased from ` 58.02 billion in
fiscal 2018 to ` 13.66 billion in fiscal 2019 and provisions
and contingencies (excluding provision for tax) increased
by 13.6% from ` 173.07 billion in fiscal 2018 to ` 196.61
billion in fiscal 2019. Hence, profit after tax decreased by
50.4% from ` 67.77 billion in fiscal 2018 to ` 33.63 billion
in fiscal 2019.
reducing leverage in the corporate sector remained slow.
As a result, there was a substantial increase in the level
of additions to non-performing loans, including slippages
from restructured loans into non-performing status, for the
banking sector and the Bank since fiscal 2016. The revised
framework for resolution of stressed assets, released by the
RBI in February 2018, further accelerated the recognition of
stressed accounts as non-performing in fiscal 2018. In fiscal
2019, the additions to non-performing loans in the banking
system declined sharply. During fiscal 2019, a few large
accounts referred under the Insolvency and Bankruptcy
Code were resolved. The additions to non-performing
loans of the Bank reduced significantly, while provisions
remained elevated. As a result, the provision coverage
ratio improved substantially. The gross additions to NPAs
were ` 171.13 billion in fiscal 2016, ` 335.44 billion in fiscal
2017 and ` 287.30 billion in fiscal 2018. Gross additions
to the Bank’s non-performing assets (NPAs) in fiscal 2019
decreased significantly to ` 110.39 billion. Gross NPAs (net
of write-offs) decreased from ` 540.63 billion at March 31,
2018 to ` 462.92 billion at March 31, 2019. Net NPAs
decreased by 51.3% from ` 278.86 billion at March 31,
2018 to ` 135.77 billion at March 31, 2019. The net NPA
ratio decreased from 4.77% at March 31, 2018 to 2.06% at
March 31, 2019. The provision coverage ratio (excluding
cumulative technical/prudential write-offs) increased from
47.7% at March 31, 2018 to 70.6% at March 31, 2019.
Net interest income increased by 17.3% from ` 230.26
billion in fiscal 2018 to ` 270.15 billion in fiscal 2019
reflecting an increase of 10.7% in the average volume of
interest-earning assets and an increase in the net interest
margin from 3.23% in fiscal 2018 to 3.42% in fiscal 2019.
The income tax expense decreased by 37.0% from
` 6.57 billion in fiscal 2018 to ` 4.14 billion in fiscal 2019.
The effective tax rate increased from 8.8% in fiscal
2018 to 10.9% in fiscal 2019 primarily reflecting the
composition of income.
Fee income increased by 15.9% from ` 103.41 billion in
fiscal 2018 to ` 119.89 billion in fiscal 2019. Dividend from
subsidiaries decreased by 11.2% from ` 12.14 billion in
fiscal 2018 to ` 10.78 billion in fiscal 2019.
Net worth increased from ` 1,051.59 billion at March 31,
2018 to ` 1,083.68 billion at March 31, 2019 primarily due
to accretion to reserves out of profit for the year, offset, in
part, by payment of dividend for fiscal 2018.
Operating expenses increased by 15.2% from ` 157.04
billion in fiscal 2018 to ` 180.89 billion in fiscal 2019
primarily due to an increase in staff cost and other
administrative expenses.
Income from treasury-related activities decreased from
` 58.02 billion in fiscal 2018 to ` 13.66 billion in fiscal
2019. During fiscal 2019, the Bank sold equity shares
representing 2.00% shareholding
ICICI Prudential
Life Insurance Company Limited resulting in a net gain
of ` 11.10 billion. During fiscal 2018, the Bank had sold
equity shares representing 7.00% shareholding in ICICI
Lombard General Insurance Company Limited resulting
in a net gain of ` 20.12 billion and had sold equity shares
representing 20.78% shareholding in ICICI Securities
Limited resulting in a net gain of ` 33.20 billion through
initial public offers (IPO).
in
Provisions and contingencies (excluding provision for tax)
increased by 13.6% from ` 173.07 billion in fiscal 2018
to ` 196.61 billion in fiscal 2019. The Indian corporate
sector experienced several challenges over the last few
years. These challenges resulted in lower than projected
cash flows for the corporates and the progress in
120
Total assets increased by 9.7% from ` 8,791.89 billion at
March 31, 2018 to ` 9,644.59 billion at March 31, 2019.
Total advances increased by 14.5% from ` 5,123.95 billion
at March 31, 2018 to ` 5,866.47 billion at March 31, 2019
primarily due to an increase in domestic advances by
16.9%, offset, in part, by a decrease in overseas advances
increased by 16.4% from
by 2.2%. Total deposits
` 5,609.75 billion at March 31, 2018 to ` 6,529.20 billion at
March 31, 2019. Term deposits increased by 21.4% from
` 2,710.50 billion at March 31, 2018 to ` 3,289.79 billion
at March 31, 2019. Current and savings account (CASA)
deposits increased by 11.7% from ` 2,899.25 billion at
March 31, 2018 to ` 3,239.40 billion at March 31, 2019.
The Bank had a branch network of 4,874 branches and an
ATM network of 14,987 ATMs at March 31, 2019.
is subject to Basel
The Bank
III capital adequacy
guidelines stipulated by RBI. As per these guidelines,
the total capital adequacy ratio of the Bank at March 31,
2019 (after deduction of proposed dividend from capital
funds) in accordance with RBI guidelines on Basel III was
16.89% with a Tier-1 capital adequacy ratio of 15.09%
MANAGEMENT’S DISCUSSION & ANALYSISANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS as compared to 18.42% with a Tier-1 capital adequacy
ratio of 15.92% at March 31, 2018. The CET-1 ratio was
13.63% at March 31, 2019 as compared to 14.43% at
March 31, 2018.
OPERATING RESULTS DATA
The following table sets forth, for the periods indicated, the operating results data.
` in billion, except percentages
Particulars
Interest income
Interest expense
Net interest income
Fee income1
Dividend from subsidiaries
Other income (including lease income)
Core operating income
Operating expenses
Core operating profit
Treasury income
Operating profit
Provisions, net of write-backs
Profit before tax
Tax, including deferred tax
Profit after tax
1
2 All amounts have been rounded off to the nearest ` 10.0 million.
3 Prior period figures have been re-grouped/re-arranged, where necessary.
Includes merchant foreign exchange income and margin on customer derivative transactions.
Fiscal 2018 Fiscal 2019 % change
15.3%
13.9
17.3
15.9
(11.2)
27.4
15.9
15.2
16.5
(76.5)
(5.3)
13.6
(49.2)
(37.0)
(50.4%)
` 634.01
363.86
270.15
119.89
10.78
0.79
401.61
180.89
220.72
13.66
234.38
196.61
37.77
4.14
` 33.63
` 549.66
319.40
230.26
103.41
12.14
0.62
346.43
157.04
189.39
58.02
247.41
173.07
74.34
6.57
` 67.77
Particulars
Return on average equity (%)1
Return on average assets (%)2
Net interest margin (%)
Cost to income (%)3
Earnings per share (`)
Book value per share (`)
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.
3 Cost represents operating expense. Income represents net interest income and non-interest income.
Fiscal 2018 Fiscal 2019
3.16
0.39
3.42
43.56
5.23
168.11
6.60
0.87
3.23
38.83
10.56
163.60
The return on average equity, return on average assets and earnings per share decreased primarily due to a decrease
in profit after tax.
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
Particulars
Interest income
Interest expense
Net interest income
Average interest-earning assets
Average interest-bearing liabilities
Net interest margin
Average yield
Average cost of funds
Interest spread
1 All amounts have been rounded off to the nearest ` 10.0 million.
Fiscal 2018 Fiscal 2019 % change
15.3%
13.9
17.3
10.7
11.8%
-
-
-
-
` 634.01
` 549.66
363.86
319.40
270.15
230.26
7,892.29
7,129.46
` 6,382.35 ` 7,132.64
3.42%
8.03%
5.10%
2.93%
3.23%
7.71%
5.00%
2.71%
121
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS Net interest income increased by 17.3% from ` 230.26
billion in fiscal 2018 to ` 270.15 billion in fiscal 2019
reflecting an increase of 10.7% in the average volume
of interest-earning assets and an increase in net interest
margin by 19 basis points.
in yield on advances, an increase in yield on investments
and an increase in interest on income tax refund. The cost
of domestic funds decreased by 2 basis points from
5.31% in fiscal 2018 to 5.29% in fiscal 2019 primarily due
to a decrease in cost of borrowings.
The yield on average interest-earning assets increased
by 32 basis points from 7.71% in fiscal 2018 to 8.03%
in fiscal 2019. The cost of funds increased by 10 basis
points from 5.00% in fiscal 2018 to 5.10% in fiscal 2019.
The interest spread increased by 22 basis points from
2.71% in fiscal 2018 to 2.93% in fiscal 2019. Net interest
margin increased by 19 basis points from 3.23% in fiscal
2018 to 3.42% in fiscal 2019.
The net interest margin on domestic operations increased
by 17 basis points from 3.60% in fiscal 2018 to 3.77%
in fiscal 2019 primarily due to an increase in yield on
interest-earning assets and a decrease in cost of funds.
The yield on domestic interest-earning assets increased
by 19 basis points from 8.28% in fiscal 2018 to 8.47% in
fiscal 2019 primarily due to an increase in the proportion
of advances in total interest-earning assets, an increase
The net interest margin of overseas branches decreased
by 19 basis points from 0.49% in fiscal 2018 to 0.30% in
fiscal 2019 primarily due to an increase in cost of funds
and a decrease in interest income on non-trading interest
rate swaps, offset, in part, by an increase in yield on
advances. The cost of overseas funds increased by 59
basis points from 3.03% in fiscal 2018 to 3.62% in fiscal
2019 primarily due to an increase in cost of borrowings
on account of an increase in LIBOR. The yield on overseas
advances increased by 72 basis points from 3.69% in
fiscal 2018 to 4.41% in fiscal 2019 primarily due to higher
interest collections on NPAs and an increase in LIBOR.
During fiscal 2019, the Bank had an expense of ` 2.50
billion on non-trading interest rate swaps as compared to
an income of ` 2.13 billion in fiscal 2018.
The following table sets forth, for the periods indicated, the trend in yield, cost, spread and margin.
Particulars
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 2018 Fiscal 2019
8.03%
8.96
7.08
7.24
6.56
3.63
7.71%
8.63
6.82
7.07
6.11
3.63
5.00
4.87
2.81
6.60
5.41
5.10
4.87
2.73
6.68
5.86
2.71
3.23%
2.93
3.42%
The yield on average interest-earning assets increased
by 32 basis points from 7.71% in fiscal 2018 to 8.03% in
fiscal 2019 primarily due to the following factors:
•
•
The yield on domestic advances increased by 11
basis points from 9.51% in fiscal 2018 to 9.62%
in fiscal 2019. The yield on overseas advances
increased by 72 basis points
in
fiscal 2018 to 4.41% in fiscal 2019 primarily due
to higher interest collections on NPAs and an
increase in LIBOR.
from 3.69%
The overall yield on average advances increased by
33 basis points from 8.63% in fiscal 2018 to 8.96% in
fiscal 2019 primarily due to an increase in proportion
of domestic advances to total advances.
The yield on average interest-earning investments
increased by 26 basis points from 6.82% in fiscal
2018 to 7.08% in fiscal 2019. The yield on Statutory
Liquidity Ratio (SLR) investments increased by 17
basis points from 7.07% in fiscal 2018 to 7.24% in
fiscal 2019 primarily due to an increase in investment
in government securities at higher yields and a reset
of rate of interest on floating rate bonds at higher
levels. The yield on non-SLR investments increased
by 45 basis points from 6.11% in fiscal 2018 to
6.56% in fiscal 2019 primarily due to an increase in
yield on certificate of deposits, commercial papers,
pass through certificates and mutual funds.
122
MANAGEMENT’S DISCUSSION & ANALYSISANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
•
The yield on other
interest-earning assets
remained at a similar level of 3.63% in fiscal 2018
and fiscal 2019.
The Bank has foreign currency bond borrowings
where the interest rate is fixed. In order to manage
the market risk, the Bank undertakes non-trading
fixed to floating interest rate swaps, where the
Bank receives fixed and pays floating interest rate.
During fiscal 2019, the Bank had an expense of ` 2.50
billion as compared to an income of ` 2.13 billion in
fiscal 2018 primarily due to an increase in LIBOR.
The yield on Rural
Infrastructure Development
Fund (RIDF) and related deposits decreased by 29
basis points from 5.34% in fiscal 2018 to 5.05%
in fiscal 2019.
Interest on income tax refund increased from ` 2.63
billion in fiscal 2018 to ` 4.48 billion in fiscal 2019.
The receipt, amount and timing of such income
depends on the nature and timing of determinations
by tax authorities and are hence neither consistent
nor predictable.
The cost of funds increased by 10 basis points from
5.00% in fiscal 2018 to 5.10% in fiscal 2019 primarily due
to the following factors:
•
The cost of borrowings increased by 45 basis points
from 5.41% in fiscal 2018 to 5.86% in fiscal 2019
primarily due to an increase in the cost of foreign
currency call and term borrowings and interest
expense on funding swaps, offset, in part, by a
decrease in the cost of refinance borrowings.
•
The cost of average deposits remained at a similar
level of 4.87% in fiscal 2018 and fiscal 2019.
The cost of term deposits increased by 8 basis points
from 6.60% in fiscal 2018 to 6.68% in fiscal 2019.
Effective August 19, 2017, the Bank reduced its
interest rate on savings account deposits by 50 basis
points on deposits below ` 5.0 million from 4.00% to
3.50%. This reduction positively impacted the cost of
deposits by about 4 basis points during fiscal 2019 as
compared to fiscal 2018. The average CASA deposits
increased from 45.6% of total average deposits
in fiscal 2018 to 45.9% of total average deposits
in fiscal 2019. While the Bank expects continued
growth in CASA deposits, the stronger growth in
retail term deposits is likely to result in some decline
in the proportion of average CASA deposits in total
average deposits.
The Bank’s interest income, yield on advances, net
interest income and net interest margin are also
likely to be impacted by recoveries from NPAs,
the competitive environment
systemic
and regulatory developments. The
timing and
quantum of recoveries and interest on income tax
refund is uncertain.
liquidity,
The RBI, in its statement of Development and
Regulatory Policies dated December 5, 2018, had
proposed that from April 1, 2019, all new floating
rate loans (housing, auto, etc.) and floating rate
loans to micro and small enterprises should be
benchmarked to one of the prescribed external
rates. The final guidelines are awaited. Any change
in the methodology of determining benchmark
rates may
income,
yield on advances, net interest income and net
interest margin.
impact the Bank’s
interest
The following table sets forth, for the period indicated, the trend in average interest-earning assets and average
interest-bearing liabilities:
Particulars
Advances
Interest-earning investments1
Other interest-earning assets
Total interest-earning assets
Deposits
Borrowings1,2
Total interest-bearing liabilities
` in billion, except percentages
Fiscal 2018 Fiscal 2019 % change
` 4,736.93 ` 5,351.93
13.0%
1,806.88
6.6
1,695.33
733.48
5.2
697.20
7,892.29
10.7
7,129.46
5,448.71
13.3
4,809.02
1,683.93
7.0
1,573.33
` 6,382.35 ` 7,132.64
11.8%
1 Average investments and average borrowings include average short-term repurchase transactions.
2 Borrowings exclude preference share capital.
3 All amounts have been rounded off to the nearest ` 10.0 million.
The average volume of interest-earning assets increased
by 10.7% from ` 7,129.46 billion in fiscal 2018 to
` 7,892.29 billion in fiscal 2019. The increase in average
interest-earning assets was primarily on account of an
increase in average advances by ` 615.00 billion and
average interest-earning investments by ` 111.55 billion.
Average advances increased by 13.0% from ` 4,736.93
billion in fiscal 2018 to ` 5,351.93 billion in fiscal 2019
primarily due to an increase in domestic advances, offset,
in part, by a decrease in overseas advances.
Average interest-earning investments increased by 6.6%
from ` 1,695.33 billion in fiscal 2018 to ` 1,806.88 billion in
123
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
fiscal 2019 primarily due to an increase in SLR investments
by 9.9% from ` 1,256.31 billion in fiscal 2018 to ` 1,380.54
billion in fiscal 2019. Average interest-earning non-SLR
investments decreased by 2.9% from ` 439.02 billion in
fiscal 2018 to ` 426.34 billion in fiscal 2019.
Average other interest-earning assets increased by 5.2%
from ` 697.20 billion in fiscal 2018 to ` 733.48 billion in
fiscal 2019 primarily due to an increase in balances with
banks outside India, RIDF and related deposits and balance
with RBI, offset, in part, by a decrease in call money lent.
Average interest-bearing liabilities increased by 11.8%
from ` 6,382.35 billion in fiscal 2018 to ` 7,132.64 billion
in fiscal 2019 primarily due to an increase in average
deposits by ` 639.69 billion and an increase in average
borrowings by ` 110.60 billion.
Average deposits increased by 13.3% from ` 4,809.02
billion in fiscal 2018 to ` 5,448.71 billion in fiscal 2019
due to an increase in average CASA deposits by ` 310.36
billion and an increase in average term deposits by
` 329.33 billion.
Average borrowings increased by 7.0% from ` 1,573.33
billion in fiscal 2018 to ` 1,683.93 billion in fiscal 2019
primarily due to an increase in refinance borrowings and
call and term money borrowings.
FEE INCOME
Fee income primarily includes fees from retail customers
such as loan processing fees, fees from cards business,
account servicing charges, third party referral fees and
fees from corporate clients such as loan processing fees
and transaction banking fees.
Fee income increased by 15.9% from ` 103.41 billion in
fiscal 2018 to ` 119.89 billion in fiscal 2019 primarily due
to an increase in fee income from cards business and
retail lending linked fees.
DIVIDEND FROM SUBSIDIARIES
Dividend from subsidiaries decreased by 11.2% from ` 12.14 billion in fiscal 2018 to ` 10.78 billion in fiscal 2019.
The following table sets forth, for the periods indicated, the details of dividend received from subsidiaries:
Name of the entity
ICICI Prudential Life Insurance Company Limited
ICICI Securities Limited
ICICI Prudential Asset Management Company Limited
ICICI Bank Canada
ICICI Lombard General Insurance Company Limited
ICICI Venture Funds Management Company Limited
ICICI Securities Primary Dealership Limited
ICICI Prudential Trust
ICICI Home Finance Company Limited
Total dividend
Insignificant amount
1
2 All amounts have been rounded off to the nearest ` 10.0 million.
` in billion
Fiscal 2018 Fiscal 2019
5.44 3.72
1.94
1.77
2.27 1.66
1.37
1.09
0.40 1.27
0.46
0.67 0.36
0.001
0.001
-
0.50
10.78
12.14
-
Other income (including lease income)
Other income increased from ` 0.62 billion in fiscal 2018 to ` 0.79 billion in fiscal 2019.
OPERATING EXPENSES
The following table sets forth, for the periods indicated, the principal components of operating expenses.
` in billion, except percentages
Particulars
Payments to and provisions for employees
Depreciation on owned property (including non-banking assets)
Other administrative expenses
Total operating expense
1 All amounts have been rounded off to the nearest ` 10.0 million.
Fiscal 2018 Fiscal 2019 % change
15.1%
(0.5)
16.6
15.2%
` 68.08
7.77
105.04
` 180.89
` 59.14
7.81
90.09
` 157.04
expenses primarily
Operating
employee
expenses, depreciation on assets and other administrative
increased by 15.2%
expenses. Operating expenses
include
from ` 157.04 billion in fiscal 2018 to ` 180.89 billion
in fiscal 2019.
124
MANAGEMENT’S DISCUSSION & ANALYSISANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS Payments to and provisions for employees
Employee expenses increased by 15.1% from ` 59.14
billion in fiscal 2018 to ` 68.08 billion in fiscal 2019
primarily due to an increase in provision for retirement
benefit obligations due to a decrease in the discount rate
linked to yield on government securities, an increase in
dearness allowances and an increase in provision for
performance bonus and performance-linked retention
pay. Employee expense also reflects the impact of annual
increments and promotions. The average staff strength
increased from 83,577 for fiscal 2018 to 84,523 for fiscal
2019 (number of employees at March 31, 2018: 82,724
and at March 31, 2019: 86,763), primarily in retail and rural
business. The employee base includes sales executives,
employees on fixed term contracts and interns.
Depreciation
Depreciation on owned property decreased by 0.5% from
` 7.81 billion in fiscal 2018 to ` 7.77 billion in fiscal 2019.
Other administrative expenses
Other administrative expenses primarily include rent,
taxes and lighting, advertisements, sales promotion,
repairs and maintenance, direct marketing expenses
and other expenditure. Other administrative expenses
increased by 16.6% from ` 90.09 billion in fiscal 2018
to ` 105.04 billion in fiscal 2019. The increase in other
administrative expenses was primarily due to an increase
in retail business volumes.
Profit/(loss) on treasury-related activities (net)
Income from treasury-related activities includes income
from sale of investments and unrealised profit/(loss) on
account of revaluation of investments in the fixed income
portfolio, equity and preference share portfolio, units
of venture funds and security receipts issued by asset
reconstruction companies.
Profit from treasury-related activities decreased from
` 58.02 billion in fiscal 2018 to ` 13.66 billion in fiscal 2019.
In fiscal 2019, the Bank made a net gain of ` 11.10 billion
on sale of equity shares of ICICI Prudential Life Insurance
Company Limited. In fiscal 2018, the Bank made a net
gain of ` 20.12 billion on sale of equity shares of ICICI
Lombard General Insurance Company Limited and a net
gain of ` 33.20 billion on sale of equity shares of ICICI
Securities Limited through an offer for sale in their IPOs.
Further, treasury income in fiscal 2018 was higher due to
higher realised gains in government securities and other
fixed income portfolios.
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
Particulars
Provision for non-performing and other assets1
Provision for investments (including credit substitutes) (net)
Provision for standard assets
Others
Total provisions and contingencies (excluding provision for tax)
Includes restructuring related provision.
1
2 All amounts have been rounded off to the nearest ` 10.0 million.
Fiscal 2018 Fiscal 2019 % change
18.0%
(81.0%)
(7.8%)
-
13.6%
` 168.12
3.56
2.55
22.38
` 196.61
` 142.45
18.77
2.77
9.08
` 173.07
Provisions are made by
the Bank on standard,
sub-standard and doubtful assets at rates prescribed by
RBI. Loss assets and the unsecured portion of doubtful
assets are provided for/written off as required by RBI
guidelines. For loans and advances of overseas branches,
provisions are made either as per RBI regulations or
as per host country regulations, whichever is higher.
Provisions on retail non-performing loans are made at
the borrower level in accordance with the retail assets
provisioning policy of the Bank, subject to the minimum
provisioning levels prescribed by RBI. The Bank holds
specific provisions against non-performing loans and
advances and against certain performing loans and
advances in accordance with RBI directions, including
provisions on accounts directed by RBI to be referred to
the National Company Law Tribunal under the Insolvency
and Bankruptcy Code, 2016 (IBC). The specific provisions
on retail loans and advances held by the Bank are higher
than the minimum regulatory requirement. In respect of
non-retail loans reported as fraud to RBI and classified in
doubtful category, the entire amount, without considering
the value of security, is provided for over a period not
exceeding four quarters starting from the quarter in which
the fraud has been detected. In respect of non-retail
loans where there have been delays in reporting the
fraud to RBI or which are classified as loss accounts, the
entire amount is provided for immediately. In cases of
frauds in retail accounts, the entire amount is provided
for immediately.
Provision on loans and advances restructured/rescheduled
is made in accordance with the applicable RBI guidelines
on restructuring of
loans and advances by banks.
In addition to the specific provision on NPAs, the Bank
maintains a general provision on standard loans and
advances at rates prescribed by RBI. For standard
loans and advances in overseas branches, the general
provision is made at the higher of host country regulatory
requirements and RBI requirements. The Bank also
makes additional general provision on loans to specific
borrowers in specific stressed sectors. The Bank makes
floating provision as per a Board approved policy, which
is in addition to the specific and general provisions made
125
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS by the Bank. The floating provision can be utilised with
the approval of the Board and RBI.
Provisions and contingencies
(excluding provisions
for tax) increased from ` 173.07 billion in fiscal 2018 to
` 196.61 billion in fiscal 2019 primarily due to an increase
in provision on advances, offset, in part, by a decrease in
provision for investments.
in
loans
the corporate sector
Provision for advances increased from ` 142.45 billion
in fiscal 2018 at ` 168.12 billion in fiscal 2019 primarily
due to additional provisions on loans classified as
NPAs in earlier years. The Indian corporate sector
experienced several challenges over the last few years.
These challenges resulted in lower than projected cash
flows for the corporates and the progress in reducing
leverage
remained slow.
As a result, there was a substantial increase in the level
of additions to non-performing loans, including slippages
into non-performing status,
from restructured
for the banking sector and the Bank since fiscal 2016.
The revised framework for resolution of stressed assets,
released by RBI in February 2018, further accelerated the
recognition of stressed accounts as non-performing in
fiscal 2018. In fiscal 2019, the additions to non-performing
loans in the banking system declined sharply. During fiscal
2019, a few large accounts referred under the Insolvency
and Bankruptcy Code were resolved. The additions to
non-performing loans of the Bank reduced significantly,
while provisions remained elevated. The provision
coverage ratio improved substantially. The provision
coverage ratio (excluding cumulative technical/prudential
write-offs)
from 47.7% at
March 31, 2018 to 70.6% at March 31, 2019.
increased significantly
During fiscal 2018, RBI advised the banks to initiate
insolvency resolution process under the provisions of IBC
FINANCIAL CONDITION
for certain specific accounts. RBI also required the banks
to make provision at 40% of the secured portion and
100% of unsecured portion, or provision as per extant
RBI guideline on asset classification norms, whichever
is higher, as at March 31, 2018. Banks were required to
further increase the provision on the secured portion
of the loan to 50.0% at June 30, 2018. During the three
months ended June 30, 2018, the Bank had made the
provision on these accounts as per April 2018 guidelines
of RBI. At March 31, 2019, the Bank holds a provision of
` 75.65 billion in respect of outstanding loans amounting
to ` 103.06 billion to these borrowers which amounts
to a provision coverage ratio (excluding cumulative
technical/prudential write-offs) of 73.9%.
Provision for investments decreased from ` 18.77 billion
in fiscal 2018 to ` 3.56 billion in fiscal 2019 primarily due
to recovery towards bonds, which were fully provided in
earlier years and lower provisions on equity shares.
for
standard
Provision
from
` 2.77 billion in fiscal 2018 to ` 2.55 billion in fiscal 2019.
The cumulative general provision held at March 31, 2019
was ` 28.74 billion (March 31, 2018: ` 25.91 billion).
assets decreased
increased from
Other provisions and contingencies
` 9.08 billion in fiscal 2018 to ` 22.38 billion in fiscal 2019
primarily due to provision on non-banking assets and
non-fund based facilities.
TAX EXPENSE
The income tax expense decreased by 37.0% from
` 6.57 billion in fiscal 2018 to ` 4.14 billion in fiscal 2019.
The effective tax rate increased from 8.8% in fiscal
2018 to 10.9% in fiscal 2019 primarily reflecting the
composition of income.
ASSETS
The following table sets forth, at the dates indicated, the principal components of assets.
` in billion, except percentages
Assets
% change
Advances
Cash and bank balances
Investments
- Domestic
- Overseas branches
- Government and other approved investments1
- Equity investment in subsidiaries
- Other investments
(4.6%)
2.3
6.8
(0.3)
(8.6)
14.5
16.9
(2.2)
0.3
14.1
8.7
9.7%
Banks in India are required to maintain a specified percentage, currently 19.25% (at March 31, 2019), of their net demand and time liabilities
by way of liquid assets like cash, gold or approved unencumbered securities.
Deposits made in Rural Infrastructure Development Fund and other related deposits pursuant to shortfall in the amount required to be lent
to certain specified sectors called priority sector as per RBI guidelines.
Fixed assets (including leased assets)
Other assets
- RIDF and other related deposits2
Total assets
1
2
At
March 31, 2018
` 841.69
2,029.94
1,384.27
98.32
547.35
5,123.95
4,479.65
644.30
79.04
717.27
269.25
` 8,791.89
At
March 31, 2019
` 802.96
2,077.33
1,479.09
98.03
500.21
5,866.47
5,236.15
630.32
79.31
818.52
292.55
` 9,644.59
3 All amounts have been rounded off to the nearest ` 10.0 million.
126
MANAGEMENT’S DISCUSSION & ANALYSISANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Total assets of the Bank
increased by 9.7% from
` 8,791.89 billion at March 31, 2018 to ` 9,644.59 billion
at March 31, 2019, primarily due to a 14.5% increase
in advances, 2.3% increase in investments and 14.1%
increase in other assets.
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
decreased from ` 841.69 billion at March 31, 2018 to
` 802.96 billion at March 31, 2019 primarily due to a
decrease in money at call and short notice and balances
with banks outside India, offset, in part, by an increase in
balance with RBI.
Investments
Total investments increased by 2.3% from ` 2,029.94
billion at March 31, 2018 to ` 2,077.33 billion at
in
March 31, 2019 primarily due
investments in government securities by ` 87.38 billion
and pass through certificates by ` 14.63 billion, offset,
in part, by a decrease in investment in commercial
papers by ` 23.04 billion and bonds and debentures by
` 11.56 billion.
increase
to an
At March 31, 2019, the Bank had an outstanding net
investment of ` 32.86 billion in security receipts issued
by asset reconstruction companies compared to ` 34.38
billion at March 31, 2018.
Advances
Net advances increased by 14.5% from ` 5,123.95 billion
at March 31, 2018 to ` 5,866.47 billion at March 31,
2019 primarily due to an increase in domestic advances.
Domestic advances increased by 16.9% from ` 4,479.65
billion at March 31, 2018 to ` 5,236.15 billion at
March 31, 2019. Net retail advances increased by 21.7%
from ` 2,898.94 billion at March 31, 2018 to ` 3,528.33
billion at March 31, 2019. Net advances of overseas
branches decreased by 2.2% from ` 644.30 billion at
March 31, 2018 to ` 630.32 billion at March 31, 2019.
Fixed and other assets
Fixed assets
from
` 79.04 billion at March 31, 2018 to ` 79.31 billion at
March 31, 2019.
increased by 0.3%
(net block)
Other assets increased by 14.1% from ` 717.27 billion
at March 31, 2018 to ` 818.52 billion at March 31, 2019
primarily due to an increase in receivables on account
of treasury transactions, income tax paid in advance and
RIDF and related deposits, offset, in part, by a decrease
in trade receivables on account of pending settlement.
RIDF and related deposits made in lieu of shortfall in
directed lending requirements increased by 8.7% from
` 269.25 billion at March 31, 2018 to ` 292.55 billion at
March 31, 2019.
LIABILITIES
The following table sets forth, at the dates indicated, the principal components of liabilities (including capital and reserves).
Liabilities
Equity share capital
Reserves
Deposits
- Savings deposits
- Current deposits
- Term deposits
Borrowings (excluding subordinated debt and preference share capital)
- Domestic
- Overseas branches
Subordinated debt (included in Tier-1 and Tier-2 capital)
- Domestic
- Overseas branches
Preference share capital1
Other liabilities
Total liabilities
Included in Schedule 4 - ‘Borrowings’ of the balance sheet.
1
2 All amounts have been rounded off to the nearest ` 10.0 million.
` in billion, except percentages
At
March 31, 2018
` 12.92
1,038.68
5,609.75
2,009.67
889.58
2,710.50
1,510.25
696.30
813.95
314.84
314.84
-
3.50
301.96
` 8,791.89
At
March 31, 2019
` 12.94
1,070.74
6,529.20
2,276.71
962.69
3,289.80
1,382.85
635.07
747.78
270.35
270.35
-
-
378.51
` 9,644.59
% change
0.2%
3.1
16.4
13.3
8.2
21.4
(8.4)
-
(8.1)
(14.1)
(14.1)
-
(100.0)
25.4
9.7%
Total liabilities (including capital and reserves) increased
by 9.7% from ` 8,791.89 billion at March 31, 2018 to
` 9,644.59 billion at March 31, 2019 primarily due to
a 16.4% increase in deposits, offset, in part, by a 9.6%
decrease in borrowings.
127
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
Deposits
Deposits increased by 16.4% from ` 5,609.75 billion at
March 31, 2018 to ` 6,529.20 billion at March 31, 2019.
Term deposits increased by 21.4% from ` 2,710.50 billion
at March 31, 2018 to ` 3,289.80 billion at March 31, 2019.
Savings account deposits increased by 13.3% from
` 2,009.67 billion at March 31, 2018 to ` 2,276.71 billion at
March 31, 2019 and current account deposits increased
by 8.2% from ` 889.58 billion at March 31, 2018 to
` 962.69 billion at March 31, 2019. The current and
savings account (CASA) deposits increased by 11.7%
from ` 2,899.25 billion at March 31, 2018 to ` 3,239.40
billion at March 31, 2019. The CASA ratio was 49.6% at
March 31, 2019 compared to 51.7% at March 31, 2018.
The average CASA increased by 14.2% from ` 2,191.86
billion in fiscal 2018 to ` 2,502.22 billion in fiscal 2019.
The average CASA ratio was 45.9% in fiscal 2019
compared to 45.6%in fiscal 2018.
Deposits of overseas branches increased by 9.3% from
` 49.58 billion at March 31, 2018 to ` 54.21 billion at
March 31, 2019.
Total deposits at March 31, 2019 formed 79.8% of
the funding (i.e., deposits and borrowings, other than
preference share capital).
Borrowings
Borrowings decreased by 9.6% from ` 1,828.59 billion at
March 31, 2018 to ` 1,653.20 billion at March 31, 2019
primarily due to a decrease in borrowings with RBI
under liquidity adjustment facility, foreign currency term
money borrowings, borrowings under collateralised
lending and borrowing obligations and subordinated
bond borrowings, offset, in part, by an increase in
foreign currency call money borrowings and refinance
borrowings. Net borrowings of overseas branches
decreased from ` 813.95 billion at March 31, 2018 to
` 747.78 billion at March 31, 2019.
Other liabilities
Other liabilities increased by 25.4% from ` 301.96 billion
at March 31, 2018 to ` 378.51 billion at March 31, 2019
primarily due to an increase in payables on account of
forex transactions, sundry creditors and bills payable.
Equity share capital and reserves
Equity share capital and reserves
from
` 1,051.59 billion at March 31, 2018 to ` 1,083.68 billion at
March 31, 2019 primarily due to accretion to reserves out
of retained profit, offset, in part, by payment of dividend.
increased
OFF BALANCE SHEET ITEMS, COMMITMENTS AND CONTINGENCIES
The following table sets forth, for the periods indicated, the principal components of contingent liabilities.
Particulars
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, 2018
` 62.66
0.01
4,326.69
945.36
410.04
416.99
` in billion
At
March 31, 2019
` 55.01
0.01
4,701.00
1,066.66
433.79
423.34
6,592.93
137.76
` 12,892.44
12,441.82
98.75
` 19,220.38
1 All amounts have been rounded off to the nearest ` 10.0 million.
Contingent liabilities increased from ` 12,892.44 billion at
March 31, 2018 to ` 19,220.38 billion at March 31, 2019
primarily due to an increase in notional amount of interest
rate swaps and currency options. The notional amount
of interest rate swaps and currency options increased
from ` 6,592.93 billion at March 31, 2018 to ` 12,441.82
billion at March 31, 2019 primarily due to an increase in
outstanding position of overnight index swaps.
Claims against the Bank, not acknowledged as debts,
represent 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.
No provision in excess of provisions already made in the
financial statements is considered necessary.
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
inter-bank market.
This results in generation of a higher number of outstanding
in the
128
MANAGEMENT’S DISCUSSION & ANALYSISANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS transactions, and hence a large value of gross notional
principal of the portfolio, while the net market risk is lower.
As a part of project financing and commercial banking
activities, the Bank has issued guarantees to support
regular business activities of clients. These generally
represent irrevocable assurances that the Bank will make
payments in the event that the customer fails to fulfil 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, including advance payment guarantee.
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 issued
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 reimburse losses
realised under guarantees amounted to ` 129.53 billion at
March 31, 2019 as compared to ` 136.65 billion at March 31,
2018. Other property or security may also be available to
the Bank to cover potential losses under guarantees.
The Bank is 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 ` 6.70 billion at March 31, 2019
compared to ` 4.87 billion at March 31, 2018.
Other items for which the Bank is contingently liable
decreased from ` 137.76 billion at March 31, 2018 to
` 98.75 billion at March 31, 2019 primarily due to pending
settlement for purchase/sale of Government of India
securities where settlement date method of accounting is
followed in accordance with RBI guidelines.
CAPITAL RESOURCES
The Bank actively manages its capital to meet regulatory
norms, current and future business needs and the risks in
its businesses. The capital management framework of the
Bank 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
The Bank is subject to the Basel III guidelines issued
by RBI, effective from April 1, 2013, which are being
implemented in a phased manner by March 31, 2020
as per the transitional arrangement provided by RBI for
Basel III implementation.
At March 31, 2019, the Bank was required to maintain
a minimum Common Equity Tier-1 (CET1) capital ratio
of 7.525%, minimum Tier-1 capital ratio of 9.025% and
minimum total capital ratio of 11.025%. The minimum total
capital requirement includes a capital conservation buffer
of 1.875% and capital surcharge of 0.15% on account of
the Bank being designated as a Domestic Systemically
Important Bank (D-SIB). Under Pillar 1 of the RBI guidelines
on Basel III, the Bank follows the standardised approach
for measurement of credit risk, standardised duration
method for measurement of market risk and basic indicator
approach for measurement of operational risk.
The following table sets forth the capital adequacy ratios computed in accordance with Basel III guidelines of RBI at
March 31, 2018 and March 31, 2019.
` in billion, except percentages
Basel III
CET1 capital
Tier-1 capital
Tier-2 capital
Total capital
Credit Risk — Risk Weighted Assets (RWA)
On balance sheet
Off balance sheet
Market Risk — RWA
Operational Risk — RWA
Total RWA
Total capital adequacy ratio
CET1 capital adequacy ratio
Tier-1 capital adequacy ratio
Tier-2 capital adequacy ratio
1
2 All amounts have been rounded off to the nearest ` 10.0 million.
At
March 31, 2018
915.87
At
March 31, 20191
936.89
1,010.64 1,037.16
159.14 123.74
1,160.90
1,169.78
5,741.03
5,220.54
4,888.69
4,433.49
787.05
852.34
523.37 488.38
605.17 644.34
6,873.75
16.89%
13.63%
15.09%
1.80%
6,349.08
18.42%
14.43%
15.92%
2.50%
Including retained earnings for fiscal 2019, post proposed mandatory appropriations and post appropriation of proposed dividend.
At March 31, 2019, the Bank’s Tier-1 capital adequacy ratio was 15.09% as against the requirement of 9.03% and total
capital adequacy ratio was 16.89% as against the requirement of 11.03%.
129
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS funds
Movement in the capital funds and risk weighted assets
from March 31, 2018 to March 31, 2019 as per Basel III
norms
(net of deductions) decreased by
Capital
` 8.88 billion from ` 1,169.78 billion at March 31, 2018
to ` 1,160.90 billion at March 31, 2019 primarily due to
progressive discounting of Tier 2 capital instruments as
per RBI extant guidelines and exercise of call option for
Tier 2 capital instruments of ` 45.21 billion and innovative
perpetual debt instrument of ` 5.00 billion, offset, in
part, by inclusion of retained earnings for fiscal 2019
and issuance of Additional Tier 1 capital instruments
of ` 11.40 billion during fiscal 2019. The mandatory
appropriation towards Investment Fluctuation Reserve of
` 12.69 billion has been considered under Tier-2 capital.
Credit risk RWA increased by ` 520.49 billion from
` 5,220.54 billion at March 31, 2018 to ` 5,741.03 billion at
March 31, 2019 primarily due to an increase of ` 455.20
billion in RWA for on-balance sheet assets and an
increase of ` 65.29 billion in RWA for off-balance sheet
assets. On-balance sheet RWA increased primarily due to
growth in advances during the year.
Market risk RWA decreased by ` 34.99 billion from
` 523.37 billion at March 31, 2018 to ` 488.38 billion at
March 31, 2019 primarily due to a decrease in value of
equity investments, offset, in part, by an increase in RWA
for fixed income securities.
Operational risk RWA increased by ` 39.17 billion from
` 605.17 billion at March 31, 2018 to ` 644.34 billion at
March 31, 2019. The operational risk capital charge is
computed based on 15% of the average of the previous
three financial years’ gross income and is revised on an
annual basis at June 30. RWA is arrived at by multiplying
the capital charge by 12.5.
RWA as a percentage of average assets was 80.3% at
March 31, 2019 (at March 31, 2018: 81.8%).
Internal assessment of capital
The capital management framework of the Bank includes
a comprehensive internal capital adequacy assessment
process conducted annually, which determines
the
level of capitalisation necessary to meet
adequate
regulatory norms and current and future business needs.
Adequate stress testing, as determined by several stress
scenarios is also done. The internal capital adequacy
assessment process is undertaken at both the standalone
bank level and the consolidated group level. The internal
capital adequacy assessment process encompasses
capital planning for a four-year 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 covers the
policies, processes, methodologies and
frameworks
established
the management of material risks.
Stress testing, which is a key aspect of the internal capital
adequacy assessment process and the risk management
for
130
insight
into the
framework, provides an
impact of
extreme but plausible scenarios on the Bank’s risk
profile and capital position. Based on the stress testing
framework approved by the Board, the Bank conducts
stress tests on various portfolios and assesses the impact
on the capital ratios and the adequacy of capital buffers
for current and future periods. The Bank periodically
assesses and refines its stress testing framework 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 and
the operating environment. The business and capital
plans and the stress testing results of certain key group
entities are integrated into the internal capital adequacy
assessment process.
Based on the internal capital adequacy assessment
process, the Bank determines the level of capital that
needs to be maintained by considering the following in
an integrated manner:
•
•
•
•
•
•
strategic focus, business plan and growth objectives;
regulatory capital requirements as per RBI guidelines;
assessment of material
stress testing;
risks and
impact of
perception of shareholders and investors;
future strategy with regard to
divestments in subsidiaries; and
investments or
evaluation of options to raise capital from domestic
and overseas markets, as permitted by RBI
from time to time.
The Bank continues to monitor relevant developments and
believes that its current robust capital adequacy position
and demonstrated track record of access to domestic
and overseas markets for capital raising will enable it to
maintain the necessary levels of capital as required by
regulations while continuing to grow its business.
LOAN CONCENTRATION
The Bank follows a policy of portfolio diversification
and evaluates its total financing exposure to a particular
industry in the light of its forecasts of growth and
profitability for that industry. The Bank’s Credit Risk
Management Group monitors all major sectors of the
economy and specifically tracks industries in which
the Bank has credit exposures. The Bank monitors
developments in various sectors to assess potential
risks in its portfolio and new business opportunities.
The Bank’s policy is to limit its exposure to any particular
industry (other than retail loans) to 15.0% of its total
exposure. In addition, the Bank has strengthened its
framework for managing concentration risk with respect
to single borrower and group exposures, based on the
internal rating and track record of the borrowers.
MANAGEMENT’S DISCUSSION & ANALYSISANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS The following tables set forth, at the dates indicated, the composition of the Bank’s gross advances (net of write-offs).
March 31, 2018
March 31, 2019
` in billion, except percentages
Particulars
Total advances
Retail finance1, 2
Services – finance
Road, ports, telecom, urban development and
other infrastructure
Power
Iron/steel and products
Crude petroleum/refining and petrochemicals
Wholesale/retail trade
Services – non-finance
Construction
Electronics and engineering
Mining
Chemical and Fertilisers
Food and beverages
Cement
Other industries3
Total
` 2,939.95
342.11
204.50
276.76
203.18
132.80
125.87
172.74
117.65
81.40
105.06
53.29
58.59
63.07
502.47
` 5,379.45
% of total
advances
54.7%
6.4
3.8
5.1
3.8
2.5
2.3
3.2
2.2
1.5
1.9
1.0
1.1
1.2
9.2
100.0%
Total advances
` 3,619.36
456.24
287.11
201.60
167.24
156.74
152.42
145.51
120.66
101.00
78.65
66.12
56.03
33.83
547.34
` 6,189.85
% of total
advances
58.5%
7.4
4.6
3.3
2.7
2.5
2.5
2.4
1.9
1.6
1.3
1.1
0.9
0.5
8.8
100.0%
1
2
3
Includes home loans, automobile loans, commercial business loans, dealer financing and small ticket loans to small businesses, personal
loans, credit cards, rural loans and loans against securities.
Includes loans against FCNR deposits of ` 64.48 billion at March 31, 2019 (March 31, 2018: ` 15.48 billion).
Other industries primarily include developer financing portfolio, gems and jewellery, metal and products (excluding iron and steel), textile,
shipping, manufacturing products (excluding metal), automobiles, drugs and pharmaceuticals and FMCG.
4 All amounts have been rounded off to the nearest ` 10.0 million.
The Bank’s capital allocation is focussed on higher growth in retail and rural lending and selective lending to the
corporate sector with focus on an increase in lending to higher rated corporates and building a granular portfolio.
Given the focus on the above priorities, gross retail finance advances (including loans against FCNR deposits) increased
by 23.1% compared to an increase of 15.1% in total gross advances in fiscal 2019. As a result, the share of gross
retail finance advances increased from 54.7% of gross advances at March 31, 2018 to 58.5% of gross advances at
March 31, 2019.
The following table sets forth, at the dates indicated, the composition of the Bank’s outstanding net advances:
Particlars
Advances
- Domestic book
- Retail
- SME
- Corporate
- Overseas book
At
March 31, 2018
5,123.95
4,479.65
2,898.94
254.45
1,326.60
644.30
` in billion
At
March 31, 2019
5,866.47
5,236.14
3,528.31
306.09
1,401.75
630.32
131
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS The following table sets forth, at the dates indicated, the rating wise categorisation of the Bank’s outstanding net advances:
Ratings category1,2
AA- and above
A+, A, A-
A- and above
BBB+, BBB, BBB-
BB and below3
Unrated
Total
Total net advances
` in billion, except percentages
At
March 31, 2018
42.4%
20.1
62.5
27.5
9.4
0.6
100.0%
5,123.95
At
March 31, 2019
45.1%
22.0
67.1
28.2
4.5
0.2
100.0%
5,866.47
1 Based on internal ratings.
2 For retail loans, ratings have been undertaken at the product level.
3
Includes net non-performing loans
The exposure to top 20 borrowers (excluding banks) as a percentage of total exposure decreased from 12.5% at
March 31, 2018 to 10.8% at March 31, 2019. The proportion of exposure to borrowers internally rated A- and above in
top 20 borrowers (excluding banks) increased from 96.0% at March 31, 2018 to 100.0% at March 31, 2019. The exposure
to top 10 borrower groups decreased from 14.3% at March 31, 2018 to 13.6% at March 31, 2019.
The following table sets forth, at the dates indicated, the composition of the Bank’s gross (net of write-offs) outstanding
retail finance portfolio.
Particulars
Home loans
Rural loans
Automobile loans
Personal loans (unsecured)
Business banking1
Commercial business
Credit cards (unsecured)
Others2,3
Total retail finance portfolio3
March 31, 2018
March 31, 2019
` in billion, except percentages
Total retail
advances
` 1,505.43
443.06
294.91
211.82
175.24
173.18
96.39
39.92
` 2,939.95
% of total retail
advances
51.2%
15.1
10.0
7.2
6.0
5.9
3.3
1.3
100.0%
Total retail
advances
` 1,784.11
511.19
318.80
314.63
236.62
227.20
126.90
99.91
` 3,619.36
% of total retail
advances
49.3%
14.1
8.8
8.7
6.5
6.3
3.5
2.8
100.0%
Includes dealer financing and small ticket loans to small businesses.
Includes loans against securities
Includes loans against FCNR deposits of ` 64.48 billion at March 31, 2019 (March 31, 2018: ` 15.48 billion).
1
2
3
4 All amounts have been rounded off to the nearest ` 10.0 million.
DIRECTED LENDING
RBI requires banks to lend to certain sectors of the
economy. Such directed
lending comprises priority
sector lending and export credit.
Priority Sector Lending and Investment
The RBI guidelines on priority sector lending require
banks to lend 40.0% of their adjusted net bank credit
(ANBC), to fund certain types of activities carried out by
specified borrowers. The definition of ANBC includes
bank credit in India adjusted by bills rediscounted
with RBI and other approved
institutions
including Priority Sector
and certain
investments
financial
Lending Certificates (PSLCs) and investments in Rural
Infrastructure Development Fund and other specified
funds on account of priority sector shortfall and is
computed with reference to the outstanding amount at
corresponding date of the preceding year as prescribed
by the RBI guidelines titled ‘Master Direction – Priority
Sector Lending – Targets and Classification’. Further, the
RBI allows exclusion from ANBC for loans extended in
India against incremental foreign currency non-resident
(bank)/non-resident external deposits during specified
period and funds raised by way of issue of long-term
bonds for financing infrastructure and low-cost housing,
subject to certain limits.
132
MANAGEMENT’S DISCUSSION & ANALYSISANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS As prescribed by RBI’s Master Direction on ‘Priority Sector
Lending - Targets and Classification’ dated July 7, 2016,
the priority sectors include categories such as agriculture,
micro, small and medium enterprises, education,
housing, social infrastructure, renewable energy and
export credit. Out of the overall target of 40.0%, banks
are required to lend a minimum of 18.0% of their ANBC
to the agriculture sector. Sub-targets of 8.0% for lending
to small & marginal farmers (out of agriculture) and 7.5%
lending target to micro-enterprises were introduced
from fiscal 2016. RBI has directed banks to maintain
direct lending to non-corporate farmers at the banking
system’s average level for the last three years, failing
which banks will attract penalties for shortfall. RBI would
notify the banks of the banking system’s average level
at the beginning of each year. RBI notified a target level
of 11.99% of ANBC for this purpose for fiscal 2019.
The banks are also required to lend 10.0% of their ANBC
to certain borrowers under the ‘weaker section’ category.
Priority sector lending achievement is evaluated on a
quarterly average basis from fiscal 2017 instead of only
at the year-end.
The Bank is required to comply with the priority sector
lending requirements prescribed by RBI from time to
time. The shortfall in the amount required to be lent to
the priority sectors and weaker sections may be required
to be deposited in funds with government sponsored
Indian development banks like the National Bank for
Agriculture and Rural Development, the Small Industries
Development Bank of India, the National Housing Bank,
MUDRA Limited and other
institutions as
decided by the RBI from time to time. These deposits
have a maturity of up to seven years and carry interest
rates lower than market rates. At March 31, 2019, the
Bank’s total investment in such bonds was ` 292.55
billion, which was fully eligible for consideration in overall
priority sector lending achievement.
financial
As prescribed in the RBI guideline, the Bank’s priority
sector lending achievement is computed on a quarterly
average basis from fiscal 2017 onwards. Total average
priority sector lending for fiscal 2019 was ` 1,891.65
billion (fiscal 2018: ` 1,500.78 billion) constituting 41.5%
(fiscal 2018: 37.7%) of ANBC, against the requirement of
40.0% of ANBC. The average lending to the agriculture
sector was ` 749.77 billion (fiscal 2018: ` 587.55 billion)
constituting 16.5% (fiscal 2018: 14.8%) of ANBC against
the requirement of 18.0% of ANBC. The average advances
to weaker sections were ` 403.47 billion (fiscal 2018:
` 246.63 billion) constituting 8.9% (fiscal 2018: 6.2%)
of ANBC against the requirement of 10.0% of ANBC.
Average lending to small and marginal farmers was
` 307.73 billion (fiscal 2018: ` 170.72 billion) constituting
6.8% (fiscal 2018: 4.3%) of ANBC against the requirement
of 8.0% of ANBC. The average
lending to micro
enterprises was ` 360.10 billion (fiscal 2018: ` 266.32
billion) constituting 7.9% (fiscal 2018: 6.7%) of ANBC
against the requirement of 7.5% of ANBC. The average
lending to non-corporate farmers was ` 496.10 billion
(fiscal 2018: ` 352.03 billion) constituting 10.9% (fiscal
2018: 8.9%) of ANBC against the requirement of 11.99%
of ANBC (11.78% for fiscal 2018). The above includes the
impact of PSLCs purchased/sold by the Bank.
CLASSIFICATION OF LOANS
its assets as performing and
The Bank classifies
non-performing
in accordance with RBI guidelines.
Under RBI guidelines, an asset is generally 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.
RBI guidelines also require an asset to be classified
as non-performing based on certain other criteria
like restructuring of a loan, inability of a borrower to
complete a project funded by the Bank within stipulated
timelines and certain other non-financial parameters.
In respect of borrowers where loans and advances made
by overseas branches are identified as impaired as per
host country regulations for reasons other than record of
recovery, but which are standard as per RBI guidelines,
the amount outstanding in the host country is classified
as non-performing.
RBI has separate guidelines for classification of loans for
projects under implementation, which are based on the
date of commencement of commercial production and
date of completion of the project as originally envisaged
at the time of financial closure. For
infrastructure
projects, a loan is classified as non-performing if it fails
to commence commercial operations within two years
from the documented date of commencement and
for non-infrastructure projects, the loan is classified
as non-performing if it fails to commence operations
within 12 months
the documented date of
such commencement.
from
RBI also has separate guidelines for restructured loans.
Upto March 31, 2015, a fully secured standard asset could
be restructured by re-scheduling of principal repayments
and/or the interest element, but had to be separately
disclosed as a restructured asset. The diminution in
the fair value of the restructured loan, if any, measured
in present value terms, was either written off or a
provision was made to the extent of the diminution
involved. Similar guidelines applied for restructuring of
sub-standard loans. Loans restructured after April 1, 2015
(excluding loans given for implementation of projects
in
infrastructure sector and non-infrastructure
sector and which are delayed up to a specified period)
by re-scheduling of principal repayments and/or the
interest element are classified as non-performing.
For such loans, the diminution in the fair value of the
loan, if any, measured in present value terms, has to be
provided for in addition to the provisions applicable to
non-performing loans.
the
133
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS The following table sets forth, at the dates indicated, information regarding asset classification of the Bank’s gross
non-performing assets (net of write-offs, interest suspense and derivative income reversals).
Particulars
Non-performing assets
Sub-standard assets
Doubtful assets
Loss assets
Total non-performing assets1
March 31, 2018 March 31, 2019
` in billion
` 75.51
450.03
15.09
` 540.63
` 52.98
385.24
24.70
` 462.92
Include advances, lease receivables and credit substitutes like debentures and bonds. Excludes preference shares.
1
2 All amounts have been rounded off to the nearest ` 10.0 million.
The following table sets forth, at the dates indicated, information regarding the Bank’s non-performing assets (NPAs).
Particulars
Gross NPA1
Net NPA
March 31, 2016
March 31, 2017
March 31, 2018
March 31, 2019
1 Net of write-offs, interest suspense and derivatives income reversal.
2
3 All amounts have been rounded off to the nearest ` 10.0 million.
` 267.21
` 425.52
` 540.63
` 462.92
Include advances, lease receivables and credit substitutes like debentures and bonds. Excludes preference shares.
` in billion, except percentages
Net customer
assets
` 4,972.29
` 5,209.52
` 5,848.78
` 6,580.34
% of net NPA
to net customer
assets2
2.67%
4.89%
4.77%
2.06%
` 132.97
` 254.51
` 278.86
` 135.77
The following table sets forth, at March 31, 2018 and March 31, 2019, the composition of gross non-performing assets
(net of write-offs) by industry sector.
Particulars
Retail finance1
Power
Mining
Construction
Iron/steel and products
Road, ports, telecom, urban development and
other infrastructure
Services – non-finance
Crude petroleum/refining and petrochemicals
Electronics and engineering
Food and beverages
Shipping
Wholesale/retail trade
Manufacturing products (excluding metal)
Services – finance
Metal & products (excluding iron & steel)
Other industries2
Total
March 31, 2018
Amount
` 47.14
105.35
89.72
59.65
68.54
26.90
47.71
18.37
15.47
6.72
11.75
6.20
8.83
-
-
28.28
` 540.63
%
8.7%
19.5
16.6
11.0
12.7
5.0
8.8
3.4
2.9
1.2
2.2
1.1
1.6
-
-
5.3
100.0%
` in billion, except percentages
March 31, 2019
Amount
` 60.22
72.98
64.08
52.77
41.54
28.35
29.74
18.90
16.90
15.97
10.64
9.38
5.77
3.33
0.10
32.25
` 462.92
%
13.0%
15.8
13.8
11.4
9.0
6.1
6.4
4.1
3.6
3.4
2.3
2.0
1.2
0.7
-
7.2
100.0%
1
2
Includes home loans, automobile loans, commercial business loans, dealer financing and small ticket loans to small businesses, personal
loans, credit cards, rural loans and loans against securities.
Other industries primarily include textile, chemical and fertilizers, gems and jewellery, drugs and pharmaceuticals, FMCG, automobiles and
developer financing.
3 All amounts have been rounded off to the nearest ` 10.0 million.
134
MANAGEMENT’S DISCUSSION & ANALYSISANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
for
the sector,
The operating environment
Indian banks had
remained challenging for the past few years particularly
due to the stress in the Indian corporate sector. The Indian
corporate sector has experienced a prolonged period of
muted growth in sales and profits. Several challenges
impacted
including an elongation of
working capital cycles and a high level of receivables,
including from the government, significant challenges
in project completion and cash flow generation due
to policy changes, delays in approvals like clearances
on environment and land, judicial decisions like the
deallocation of coal mines, significant decline in global
commodity prices in fiscal 2015 and fiscal 2016 and
adjustments to structural reforms such as demonetisation
and Goods & Services Tax. These challenges resulted
in lower than projected cash flows and the progress in
reducing leverage in the corporate sector remained
slow. As a result, there was a substantial increase in the
level of additions to non-performing loans, including
slippages from restructured loans, into non-performing
status for the banking sector and the Bank from fiscal
2016. Further, the revised framework for resolution of
stressed assets, released by RBI in February 2018, further
accelerated the recognition of stressed accounts as
non-performing in fiscal 2018. Subsequently, the additions
to non-performing loans in the banking system declined
sharply during fiscal 2019. During fiscal 2019, a few large
accounts referred under the Insolvency and Bankruptcy
Code were resolved. However, challenges emerged in
some sectors and specific corporates/promoter groups
towards the later part of the year.
The gross additions to NPAs were ` 171.13 billion in fiscal
2016, ` 335.44 billion in fiscal 2017 and ` 287.30 billion
in fiscal 2018. The gross additions to NPAs decreased
significantly to ` 110.39 billion in fiscal 2019. In fiscal
2019, additions to gross NPAs were primarily in the
food and beverages, services-non finance and mining
sectors. In fiscal 2019, the Bank recovered/upgraded
non-performing assets amounting to ` 47.16 billion,
wrote-off non-performing assets amounting to ` 112.49
billion and sold non-performing assets amounting to
` 28.45 billion. As a result, gross NPAs (net of write-offs)
of the Bank decreased from ` 540.63 billion at March 31,
2018 to ` 462.92 billion at March 31, 2019.
Net NPAs decreased from ` 278.86 billion at March 31,
2018 to ` 135.77 billion at March 31, 2019. The ratio of
net NPAs to net customer assets decreased from 4.77%
at March 31, 2018 to 2.06% at March 31, 2019.
At March 31, 2019, gross non-performing loans in the
retail portfolio were 1.69% of gross retail loans compared
to 1.61% at March 31, 2018 and net non-performing
loans in the retail portfolio were 0.72% of net retail loans
compared to 0.65% at March 31, 2018.
The provision coverage ratio at March 31, 2019
including cumulative technical/prudential write-offs was
80.7% (March 31, 2018: 60.5%). Excluding cumulative
technical/prudential write-offs, the provision coverage
ratio was 70.6% (March 31, 2018: 47.7%).
The total non-fund based outstanding to borrowers
classified as non-performing was ` 42.20 billion (March 31,
2018: ` 29.80 billion). The Bank held a provision of ` 15.91
billion at March 31, 2019 (March 31, 2018: ` 3.46 billion)
against these non-fund based outstanding.
The gross outstanding loans to borrowers whose facilities
have been restructured decreased from ` 15.95 billion at
March 31, 2018 to ` 3.49 billion at March 31, 2019 billion
at March 31, 2018 primarily due to upgradation from
standard restructured category to standard category of
` 10.40 billion. The net outstanding loans to borrowers
whose
facilities have been restructured decreased
from 15.53 billion at March 31, 2018 to ` 3.21 billion
at March 31, 2019. The aggregate non-fund based
outstanding to borrowers whose loans were restructured
was ` 2.15 billion at March 31, 2019 (March 31, 2018:
` 3.96 billion).
At March 31, 2019 the Bank had performing loans of
` 6.24 billion where S4A had been implemented and
performing loans of ` 19.14 billion where 5/25 scheme
had been implemented. The aggregate non-fund based
outstanding to these borrowers (where S4A had been
implemented) was ` 15.39 billion.
In addition to the above, at March 31, 2019, the
outstanding loans and non-fund facilities to borrowers in
the corporate and small and medium enterprises portfolio
rated BB and below were ` 175.25 billion, which included
` 42.20 billion of non-fund outstanding to borrowers
classified as NPA.
The Bank, in its previous Annual Report for 2018, had
reported on the various steps and measures taken
pursuant to its becoming aware in March 2018 of an
anonymous whistleblower complaint alleging incorrect
asset classifications stemming from claimed irregular
transactions in borrower accounts, incorrect accounting
of interest income and NPA recoveries as fees, and
overvaluation of collateral securing corporate loans.
As previously reported, the Bank, at the direction of the
Audit Committee and with the assistance of external
counsel, is continuing to investigate all of the allegations
made in the complaint. The Bank has an established
process whereby all whistleblower complaints and
matters escalated to senior management are investigated
for appropriate action, including an assessment of the
impact on financial statements, if any.
In addition, as a large and internationally active bank,
with operations and listing of its equity and debt
instruments in multiple jurisdictions, the Bank is regularly
engaged with regulators, including the United States
Securities and Exchange Commission (‘SEC’), on a
range of matters, including regarding the March 2018
complaint. Even before this complaint, the Bank has
been responding to requests for information from the
SEC investigatory staff regarding an enquiry relating to
the timing and amount of the Bank’s loan impairment
provisions taken under U.S. GAAP. The Bank evaluates
loans for impairment under U.S. GAAP for the purpose
135
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS of preparing the annual footnote reconciling the Bank’s
Indian GAAP financial statements to U.S. GAAP. The
Bank has voluntarily complied with all requests of the
SEC investigatory staff for information and continues to
cooperate with the SEC on the matter.
SEGMENT INFORMATION
RBI, in its guidelines on ‘segmental reporting’, has
their
stipulated specified business segments and
definitions, for the purposes of public disclosures on
business information for banks in India.
The standalone segmental report for fiscal 2019, based
on the segments identified and defined by RBI, has been
presented as follows:
•
•
•
•
Retail Banking includes exposures of the Bank,
which satisfy the four qualifying criteria of ‘regulatory
retail portfolio’ as stipulated by RBI guidelines on the
Basel III framework.
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 RBI guidelines for the Bank.
Treasury
includes
portfolio of the Bank.
the
entire
investment
Other Banking includes 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
requirements and directed lending requirements.
Retail banking segment
The profit before tax of the segment increased by 15.2%
from ` 71.41 billion in fiscal 2018 to ` 82.23 billion in fiscal
2019 primarily due to an increase in net interest income
and non-interest income, offset, in part, by an increase in
non-interest expenses and provisions.
Net interest income increased by 17.7% from ` 134.48
billion in fiscal 2018 to ` 158.28 billion in fiscal 2019
primarily due to growth in average loan portfolio and an
increase in average deposits.
Non-interest income increased by 15.9% from ` 65.72
billion in fiscal 2018 to ` 76.15 billion in fiscal 2019
income from
primarily due to an
increase
credit card portfolio, transaction banking
fees and
lending linked fees.
in fee
increased by 16.3%
from
Non-interest expenses
` 121.34 billion in fiscal 2018 to ` 141.16 billion in fiscal
2019 primarily due to an increase in employee cost and
other administrative expenses reflecting an increase in
business volume.
136
While the provision as a percentage of retail loan portfolio
continues to remain low for the Bank, the provisions (net
of write-back) increased by 48.2% from ` 7.45 billion in
fiscal 2018 to ` 11.04 billion in fiscal 2019 primarily due
to an increase in retail loan portfolio and a change in
composition. The provision also included the impact of
provision on farmer finance.
Wholesale banking segment
The loss (before tax) of the segment increased from
` 82.81 billion in fiscal 2018 to ` 102.42 billion in fiscal
2019 primarily due to an increase in provisions, offset, in
part, by an increase in net interest income.
Net interest income increased by 20.3% from ` 60.97
billion in fiscal 2018 to ` 73.36 billion in fiscal 2019
primarily due to an increase in loan portfolio, an increase
in average deposits and higher interest collection on
non-performing assets during fiscal 2019.
Non-interest income increased by 12.4% from ` 35.91
billion in fiscal 2018 to ` 40.38 billion in fiscal 2019.
Provisions increased from ` 146.68 billion in fiscal 2018 to
` 181.52 billion in fiscal 2019 primarily due to additional
provisions on cases classified as NPAs in earlier periods,
provision on non-fund based facilities and provision on
non-banking assets acquired under debt-asset swap.
Treasury segment
The profit before tax of the segment decreased by 36.3%
from ` 81.14 billion in fiscal 2018 to ` 51.65 billion in fiscal
2019 primarily due to a decrease in non-interest income,
offset, in part, by a decrease in provision on investments.
`
from
income
decreased
Non-interest
71.70
billion in fiscal 2018 to ` 27.71 billion in fiscal 2019.
Non-interest income of fiscal 2018 included gain on sale
of equity shares of ICICI Lombard General Insurance
Company Limited of ` 20.12 billion (before tax and after
IPO expenses) and ICICI Securities Limited of ` 33.20
billion (before tax and after IPO expenses) through IPO.
Non-interest income of fiscal 2019 included gain on
sale of equity shares of ICICI Prudential Life Insurance
Company Limited of ` 11.10 billion (before tax and
after IPO expenses) through an offer for sale. Gain on
government securities and other fixed income positions
was higher in fiscal 2018 as compared to fiscal 2019
primarily due to higher realised gains.
Provisions decreased from ` 18.87 billion in fiscal 2018
to ` 3.71 billion in fiscal 2019 primarily due to recovery
towards bonds, which were fully provided in earlier years
and lower provision on equity shares.
Other banking segment
Profit before tax of other banking segment increased
from ` 4.60 billion in fiscal 2018 to ` 6.31 billion in fiscal
2019 primarily due to an increase in net interest income.
Net interest income increased from ` 4.30 billion in fiscal
2018 to ` 6.53 billion in fiscal 2019 primarily due to an
increase in interest on income tax refund. Interest on
income tax refund increased from ` 2.63 billion in fiscal
2018 to ` 4.48 billion in fiscal 2019.
MANAGEMENT’S DISCUSSION & ANALYSISANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS CONSOLIDATED FINANCIALS AS PER
INDIAN GAAP
From April 1, 2018, certain group companies (ICICI
Securities Limited, ICICI Securities Primary Dealership
Limited, ICICI Prudential Asset Management Company
and ICICI Home Finance Company) have adopted Ind
AS. However, for preparation of consolidated financial
statements of the Bank, financial statements as per Indian
GAAP for these entities have been considered.
The consolidated profit after tax decreased by 44.8%
from ` 77.12 billion in fiscal 2018 to ` 42.54 billion in fiscal
2019 primarily due to a decrease in the profit of ICICI
Bank, ICICI Prudential Life Insurance and loss incurred by
ICICI Bank UK PLC, offset, in part, by an increase in profit
of ICICI Lombard General Insurance.
The consolidated assets of the Bank and its subsidiaries
and other consolidating entities
from
` 11,242.81 billion at March 31, 2018 to ` 12,387.94 billion
at March 31, 2019. Consolidated advances increased
from ` 5,668.54 billion at March 31, 2018 to ` 6,469.62
billion at March 31, 2019.
increased
At March 31, 2019, the consolidated Tier-1 capital
adequacy ratio was 14.73% as against the minimum
requirement of 9.025% and total consolidated capital
adequacy ratio was 16.47% as against the minimum
requirement of 11.025%.
ICICI PRUDENTIAL LIFE INSURANCE
COMPANY (ICICI LIFE)
ICICI Life offers a range of products within the protection
and savings category. ICICI Life’s market share was 17.7%
in fiscal 2019 based on new business written premium (on
a retail weighted new business premium basis) according
to the Life Insurance Council. The Value of New Business
(VNB) margin was 17.0% for fiscal 2019 compared to
16.5% for fiscal 2018. The company’s VNB increased
from ` 12.86 billion for fiscal 2018 to ` 13.28 billion for
fiscal 2019. ICICI Life’s total premium grew by 14.3%
from ` 270.69 billion in fiscal 2018 to ` 309.30 billion in
fiscal 2019. Annualised Premium Equivalent (APE) from
the protection business increased by 61.9% from ` 4.46
billion in fiscal 2018 to ` 7.22 billion in fiscal 2019 and it
accounts for 9.33% of overall APE for fiscal 2019. In fiscal
2019, the protection business contributed over 20%
of new business premium received. The post-dividend
Embedded Value grew by 15.1% from ` 187.88 billion
at March 31, 2018 to ` 216.23 billion at March 31, 2019.
The total assets under management of ICICI Life stood at
` 1,604.10 billion at March 31, 2019.
Net premium earned increased from ` 268.11 billion in
fiscal 2018 to ` 305.79 billion in fiscal 2019. The profit
after tax decreased from ` 16.20 billion in fiscal 2018 to
` 11.41 billion in fiscal 2019 primarily due to higher new
business strain resulting from the new business growth
of protection business.
ICICI LOMBARD GENERAL INSURANCE
COMPANY (ICICI GENERAL)
ICICI General is among the large private sector general
insurance companies in India. ICICI General’s overall
market share was 8.5% during fiscal 2019 on the basis of
gross direct premium according to the General Insurance
Council of India. The Gross Domestic Premium Income
of ICICI General increased by 17.2% year-on-year to
` 144.88 billion in fiscal 2019. The company’s combined
ratio improved to 98.5% in fiscal 2019 from 100.2% in
fiscal 2018. The return on equity increased to 21.3% in
fiscal 2019 as against 20.8% in fiscal 2018. The solvency
ratio at March 31, 2019 was 224.0% against the minimum
regulatory requirement of 150.0%. The number of
policies issued increased to 26.5 million in fiscal 2019
compared to 23.5 million policies in fiscal 2018.
Net earned premium increased from ` 69.12 billion in
fiscal 2018 to ` 83.75 billion in fiscal 2019 primarily due
to an increase in motor, health and personal accident
insurance business. The profit after tax increased from
` 8.62 billion in fiscal 2018 to ` 10.49 billion in fiscal 2019
primarily due to an increase in net earned premium,
offset, in part, by an increase in claims and benefits paid
and tax expenses.
ICICI PRUDENTIAL ASSET MANAGEMENT
COMPANY (ICICI PRUDENTIAL AMC)
ICICI Prudential AMC is India’s leading asset manager
with average quarterly assets under management (AUM)
of ` 3,207.93 billion at March 31, 2019. The company’s
overall market share
in the domestic mutual fund
business was 13.1% on a quarterly average basis.
At March 31, 2019, the quarterly average equity mutual
fund AUM (excluding exchange traded funds) managed
by the company was ` 1,376.42 billion with a market
share of 14.3%.
Indian GAAP, the profit after tax of
As per
ICICI
Prudential AMC increased from ` 6.26 billion in fiscal
2018 to ` 6.87 billion in fiscal 2019 primarily due to an
increase in fee income, offset, in part, by an increase
in staff cost. During fiscal 2019, ICICI Prudential AMC
has paid a compensation to certain schemes and its
investors amounting to ` 1.09 billion, in relation to
certain investments made by the relevant schemes.
This compensation was made based on an advice
received from the regulators.
is a
leading
retail broking
ICICI SECURITIES LIMITED (ICICI
SECURITIES)
ICICI Securities
firm.
The company has a leadership position in the equity
brokerage space with over 4.4 million operational
accounts. Its customers have access to high quality
research and advisory services, backed by a robust
technology platform
financial goals.
to meet
In the distribution business, ICICI Securities is the second
largest non-bank mutual fund distributor with assets
under management of over ` 347.00 billion. The company
their
137
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS also sells other financial products like National Pension
Scheme, life, health and general insurance, sovereign
gold bonds, corporate fixed deposits, etc. through a
network of close to 200 branches in more than 75 cities
and a network of sub-brokers and ICICI Bank branches.
As per Indian GAAP, the consolidated profit after tax of
ICICI Securities Limited and its subsidiaries decreased
from ` 5.58 billion in fiscal 2018 to ` 4.95 billion in fiscal
2019 primarily due to a decrease in brokerage income on
account of a decrease in equity delivery volumes and a
decrease in third party product distribution fees.
ICICI SECURITIES PRIMARY DEALERSHIP
(I-SEC PD)
I-Sec PD maintained its leading position in auction bidding
and underwriting as well as in secondary market trading
activity in fiscal 2019. The company remained profitable,
despite the spike in yields during the year. I-Sec PD
managed multiple corporate debt placements in fiscal
2019 and was ranked 5th in the PRIME League Tables.
The company is empanelled as one of the fund managers
managing the corpus of both the Employee Provident
Fund Organisation, India’s largest retirement fund, and the
Coal Mines Provident Fund, India’s second largest fund.
As per Indian GAAP, the profit after tax of I-Sec PD
decreased from ` 1.12 billion in fiscal 2018 to ` 0.61 billion
in fiscal 2019 primarily due to a decrease in trading gains.
Trading gains decreased primarily due to an increase in
yield on government securities. During fiscal 2019, yield on
10-year government securities increased by 9 basis points.
to
its
ICICI HOME FINANCE COMPANY (ICICI HFC)
ICICI HFC is primarily engaged in providing retail mortgage
loans to individuals. It also provides property search
services
individual and corporate customers.
The Company is registered as a housing finance company
with National Housing Bank (NHB). During fiscal 2019,
the company diversified its liability portfolio by raising
funds through external commercial borrowings of ` 19.66
billion, refinance line from NHB of ` 10.00 billion and also
increased its fixed deposit portfolio to ` 10.49 billion.
The company disbursed total loans amounting to ` 63.33
billion during the year, including buy-out of portfolios from
other housing finance companies. This led to a 37% growth
in its loan book to ` 133.33 billion at March 31, 2019.
As per Indian GAAP, the profit after tax of ICICI HFC
decreased from ` 0.64 billion in fiscal 2018 to ` 0.28 billion
in fiscal 2019 primarily due to an increase in staff costs
and other administrative expenses. Net NPAs increased
from ` 2.04 billion at March 31, 2018 to ` 2.71 billion
at March 31, 2019 primarily due to addition to NPAs in
Construction Realty Finance (CRF) portfolio.
ICICI VENTURE FUNDS MANAGEMENT
COMPANY (ICICI VENTURE)
ICICI Venture concluded eight new investments with an
aggregate capital outlay of over USD 565.0 million across
IAF Series 4, iREIF, AION (a strategic partnership between
138
ICICI Venture and Apollo Global Management in the area
of special situations) and Resurgent (a power platform
company co-sponsored by
ICICI Venture and Tata
Power). ICICI Venture also concluded nine full or partial
exits across various funds for an aggregate realisation of
about USD 300.0 million. During fiscal 2019, subsequent
closings of its third real estate fund iREIF were concluded
taking the total commitment beyond the target fund size
of ` 5.0 billion to ` 5.25 billion, thereby triggering the
green shoe option.
The profit after tax of ICICI Venture Fund Management
Company Limited increased from ` 0.11 billion in fiscal
2018 to ` 0.70 billion in fiscal 2019 primarily due to an
increase in income from venture capital units, offset,
in part, by an increase in staff cost and a decrease in
management fees.
ICICI BANK CANADA
The profit after tax of ICICI Bank Canada increased
from CAD 44.2 million (` 2.22 billion) in fiscal 2018 to
CAD 52.4 million (` 2.79 billion) in fiscal 2019 primarily
due to an increase in net interest income, fee income
and higher write-back of provisions, offset, in part, by
loss on foreign exchange and an increase in operating
expenses. ICICI Bank Canada’s return on average net
worth was 9.40% in fiscal 2019 as compared to 6.90%
in fiscal 2018.
At March 31, 2019, ICICI Bank Canada had total assets
of CAD 6.63 billion compared to CAD 6.32 billion at
March 31, 2018. Net NPAs increased from nil at March 31,
2018 to CAD 9.3 million (` 0.48 billion) at March 31, 2019.
ICICI Bank Canada had a total capital adequacy ratio of
17.1% at March 31, 2019 as against 17.3% at March 31,
2018. ICICI Bank Canada has distributed common share
dividends of CAD 25.6 million in fiscal 2019 compared to
CAD 21.6 million in fiscal 2018.
ICICI BANK UK PLC (ICICI BANK UK)
The operating income of ICICI Bank UK was USD 79.8
million for fiscal 2019, compared to USD 83.2 for fiscal
2018, primarily due to a decrease in non-interest income
and loss on sale of financial assets, offset, in part, by
an increase in net interest income. Loss of ICICI Bank
UK increased from US$ 25.5 million (` 1.65 billion) in
fiscal 2018 to US$ 52.9 million (` 3.71 billion) in fiscal
2019 primarily due to higher specific provisions on
non-performing loans.
At March 31, 2019, ICICI Bank UK had total assets
of USD 3.84 billion compared to USD 3.88 billion at
March 31, 2018. Net NPAs decreased from US$ 194.0
million (` 12.64 billion) at March 31, 2018 to US$ 63.1
million (` 4.36 billion) at March 31, 2019. There was an
improvement in the company’s gross impairment ratio
to 8.3% and net impairment ratio to 2.6% in fiscal 2019
compared to 13.0% and 8.2%, respectively, in fiscal 2018.
ICICI Bank UK had a capital adequacy ratio of 16.8% at
March 31, 2019 compared to 16.5% at March 31, 2018.
MANAGEMENT’S DISCUSSION & ANALYSISANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS The following table sets forth, for the periods and at the dates indicated, the profit/(loss) and total assets of our
principal subsidiaries.
Profit after tax
Total assets1
` in billion
Company
Fiscal 2018
Fiscal 2019
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance
Company Limited
ICICI Prudential Asset Management
Company Limited
ICICI Securities Limited (consolidated)
ICICI Bank Canada
ICICI Venture Funds Management
Company Limited
ICICI Securities Primary Dealership Limited
ICICI Home Finance Company Limited
ICICI Bank UK PLC
1
` 16.20
8.62
6.26
5.58
2.22
0.11
1.12
0.64
` (1.65)
` 11.41
10.49
6.87
4.95
2.79
0.70
0.61
0.28
` (3.71)
At
March 31, 2018
` 1,417.24
297.41
11.29
28.49
319.93
3.31
172.10
100.60
` 253.96
At
March 31, 2019
` 1,629.32
334.02
13.10
46.51
341.61
3.07
115.93
138.83
` 266.43
Total assets are as per classification used in the consolidated financial statements and hence the total assets as per subsidiary’s financial
statements may differ.
2 See also ‘Financials- Statement pursuant to Section 129 of the Companies Act, 2013’.
3 All amounts have been rounded off to the nearest ` 10.0 million.
MIGRATION TO INDIAN ACCOUNTING
STANDARDS (IND AS)
Banks in India currently prepare their financial statements
as per the guidelines issued by RBI, the Accounting
Standards notified under section 133 of the Companies
Act, 2013 and generally accepted accounting principles
in India (Indian GAAP). In January 2016, the Ministry of
Corporate Affairs issued the roadmap for implementation
of new Indian Accounting Standards (Ind AS), which were
based on convergence with the International Financial
Reporting Standards (IFRS), for scheduled commercial
banks, insurance companies and non-banking financial
companies (NBFCs). In March 2019, RBI deferred the
implementation of Ind AS for banks till further notice as
the recommended legislative amendments were under
consideration of Government of India.
accounting,
The key impact areas for the Bank include accounting
of
instruments, employee stock options,
financial
and
consolidation
implementation of technology systems. Of these, the
accounting of financial assets differs significantly from
Indian GAAP in many areas, which include classification,
fair valuation, expected credit losses, effective interest
rate accounting and derecognition.
deferred
tax
The Bank is in the process of implementing a centralised
system solution to cater to Ind AS specific accounting
requirements in certain areas such as effective interest rate
accounting and expected credit loss. For implementation
of Ind AS, the Bank has formed a Steering Committee,
which meets regularly to supervise the progress of the
project. An update on the implementation status is also
submitted to the Audit Committee at quarterly intervals.
139
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS KEY FINANCIAL INDICATORS: LAST 10 YEARS
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o
ANNUAL REPORT 2018-19INTEGRATED REPORTSTATUTORY REPORTSFINANCIAL STATEMENTS
STANDALONE FINANCIAL STATEMENTS
INDEPENDENT AUDITORS’ REPORT
To the Members of
ICICI Bank Limited
1.
2.
3.
4.
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of ICICI Bank Limited (‘the Bank’), which comprise
the Balance Sheet as at 31 March 2019, the Profit and Loss Account and the Cash Flow Statement for the year then
ended, and a summary of the significant accounting policies and other explanatory information. Incorporated in
these standalone financial statements are the returns of the international branches for the year ended 31 March 2019.
The branches in Dubai, South Africa, and New York have been audited by the respective local auditors.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements give the information required by the section 29 of the Banking Regulation Act, 1949, as well as
the Companies Act, 2013 (‘Act’) and circulars and guidelines issued by the Reserve Bank of India, 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, including the Accounting Standards prescribed under section 133 of the Act, read with rule 7 of the
Companies (Accounts) Rules, 2014 (as amended), of the state of affairs of the Bank as at 31 March 2019, and its profit
and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Standalone Financial Statements section of our report. We are independent of the Bank, in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India (‘ICAI’), together with the ethical requirements that are
relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
standalone financial statements of the current period. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
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5. We have determined the matters described below to be the key audit matters to be communicated in our report.
a. Information Technology (‘IT’) systems and controls impacting financial reporting
(Refer chapter ‘Key risks impacting the Bank’s business’ under the Integrated Report of the Annual Report)
Key Audit Matter
How our audit addressed the key audit matter
The IT environment of the Bank is complex and
involves a large number of independent and inter-
dependent IT systems used in the operations of the
Bank for processing and recording a large volume of
transactions at numerous locations. As a result, there
is a high degree of reliance and dependency on such IT
systems for the financial reporting process of the Bank.
Appropriate IT general controls and application controls
are required to ensure that such IT systems are able to
process the data, as required, completely, accurately
and consistently for reliable financial reporting.
The accuracy and reliability of the financial reporting
process depends on the IT systems and the related
control environment, including:
IT general controls over user access management
and change management across applications,
networks, database, and operating systems;
IT automated application controls.
In assessing the integrity of the IT systems, we involved
our IT experts to obtain an understanding of the IT
infrastructure and IT systems relevant to the Bank’s
financial reporting process for evaluation and testing of
IT general controls and IT automated controls existing
in such IT systems.
Access rights were tested over applications, operating
systems, networks, and databases, which are relied upon
for financial reporting. We also assessed the operating
effectiveness of controls over granting, removal and
periodical review of access rights. We further tested
segregation of duties, including preventive controls to
ensure that access to change applications, the operating
system or databases in the production environment
were granted only to authorized personnel.
Other areas
control environment,
security
change management.
that were assessed under
IT
included password policies,
around
controls
and
the
configurations,
Due to the importance of the impact of the IT systems
and related control environment on the Bank’s financial
reporting process, we have identified testing of such IT
systems and related control environment as a key audit
matter for the current year audit.
We also evaluated the design and tested the operating
effectiveness of key automated controls within various
business processes. This included testing the integrity
of system interfaces, the completeness and accuracy of
data feeds, and automated calculations.
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b. Identification and provisioning for non-performing assets (‘NPAs’)
As at 31 March 2019, the Bank reported total loans and advances (net of provisions) of ` 5,866,466 million (2018:
` 5,123,953 million), gross NPAs of ` 456,760 million (2018: ` 532,402 million), and provision for non-performing
assets of ` 322,263 million (2018: 254,166 million). The provision coverage ratio as at 31 March 2019 is
70.6% (2018: 47.7%).
(Refer schedules 9, 18.18 and 18.21)
Key Audit Matter
The identification of NPAs and provisioning for advances
is made in accordance with the extant RBI regulations
or host country regulations, in the case of international
branches. Based on our risk assessment, the following
are significant in assessment of the NPA provisions:
Recognition of defaults, in accordance with the
criteria set out in the RBI Prudential norms on
Income Recognition, Asset Classification and
Provisioning pertaining
(IRAC
norms) or in accordance with the host country
regulations, as applicable. Further, the Bank
is also required to apply its judgement to
determine the identification of NPAs by applying
certain qualitative aspects;
to Advances
The measurement of provision under RBI
guidelines
is dependent on the ageing of
overdue balances, secured/ unsecured status
of advances, stress and liquidity concerns in
certain sectors, and valuation of collateral. The
provision on NPAs at certain overseas branches
requires estimation of amounts and timing of
expected future cash flows and exit values.
Considering the significance of the above matter to
the financial statements, the heightened regulatory
inspections, and significant auditor attention required,
we have identified this as a key audit matter for the
current year audit.
How our audit addressed the key audit matter
We tested the design and operating effectiveness of
key controls, including IT based controls, focusing
on the following:
Identification and classification of NPAs in line with
RBI IRAC norms and certain qualitative aspects;
Periodic internal reviews of asset quality;
Assessment of adequacy of NPA provisions; and
Periodic valuation of collateral for NPAs.
To test the identification of loans with default events
and other triggers, we selected a sample of performing
loans and independently assessed as to whether there
was a need to classify such loans as NPAs.
With respect to provisions recognised towards NPAs,
we selected samples based on high risk industry
sectors, such as shipping, rigs, power, mining, and oil
and gas exploration. For the samples selected, we re-
performed the provision calculations and compared
our outcome to that prepared by the management and
challenged various assumptions and judgements which
were used by the management.
We assessed the appropriateness and adequacy of
disclosures against the relevant accounting standards
and RBI requirements relating to NPAs.
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c. Provisions for litigation and taxation and contingent liabilities
As at 31 March 2019, the Bank has reported the following:
Particulars
Legal cases
Taxes
(Refer schedules 12, 18.40 and 18.41)
Key Audit Matter
As at 31 March 2019, the Bank has ongoing legal and tax
cases with varied degrees of complexities. This indicates
that a significant degree of management judgement
is involved in determining the appropriateness of
provisions and related disclosures.
judgement
is needed
Significant management
in
determining whether an obligation exists and whether
a provision should be recognised as at the reporting
date, in accordance with the accounting criteria set
under Accounting Standard 29 - Provisions, Contingent
Liabilities and Contingent Assets (‘AS 29’), or whether it
needs to be disclosed as a contingent liability. Further,
significant judgements are also involved in measuring
such obligations, the most significant of which are:
Assessment of liability: Judgement is involved
in the determination of whether an outflow
in respect of identified material matters are
probable and can be estimated reliably;
Adequacy of provisions: The appropriateness
of assumptions and judgements used in the
estimation of significant provisions; and
Adequacy of disclosures of provision
for
liabilities and charges, and contingent liabilities.
Considering the significance of the above matter to the
financial statements, and significant auditor attention
required to test such estimates, we have identified this
as a key audit matter for current year audit.
(` in millions)
Included under contingent liabilities
At 31.03.2018
647
62,013
At 31.03.2019
1,096
53,913
How our audit addressed the key audit matter
Our audit procedures included, but were not limited
to, the following:
We tested the design and operating effectiveness of the
Bank’s key controls over the estimation, monitoring and
disclosure of provisions and contingent liabilities.
For significant
legal matters, we sought external
confirmations and also reviewed the confirmations
obtained by the management from external legal
counsels and corroborated with management’s
documented conclusions on
the assessment of
outstanding litigations against the Bank.
In respect of taxation matters, we involved our tax
specialists to gain an understanding of the current
status of the outstanding tax litigations, including
understanding of various orders / notices received by
the Bank and the management’s grounds of appeals
before the relevant appellate authorities, and critically
evaluated
the
likelihood of the liability devolving upon the Bank, in
accordance with the principles of AS 29.
the management’s assessment of
For the significant provisions made, we understood,
assessed and challenged the adequacy of provisions
recognised by the management. We also reviewed
the historical accuracy of the provisions recognised to
determine the efficacy of the process of estimation by
the management.
Further, we assessed whether the disclosures related
to significant litigations and taxation matters were
fairly presented.
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d. Valuation of derivatives
Particulars
Notional value of derivatives
Included under
Contingent liabilities
At 31.03.2019
17,566,162
(` in millions)
At 31.03.2018
11,336,607
(Refer schedules 12 and 18.15)
Key Audit Matter
Derivatives are valued through models with external
inputs. The derivatives portfolio of the Bank primarily
includes transactions which are carried out on behalf
of its clients (and are covered on a back-to-back basis)
and transactions to hedge the Bank’s interest and
foreign currency risk.
A significant degree of management judgement is
involved in the application of valuation techniques
through which the value of the Bank’s derivatives
is determined. The financial statement risk arises
particularly with
to complex valuation
models, parameters, and inputs that are used in
determining fair values.
respect
Considering the significance of the above matter to the
financial statements, significant management estimates
and judgements, and auditor attention required to test
such estimates and judgements, we have identified this
as a key audit matter for current year audit.
How our audit addressed the key audit matter
Our audit procedures included, but were not limited
to, the following:
We included our valuation experts as a part of our audit
team to obtain an understanding, evaluate the design,
and test the operating effectiveness of the key controls
over the valuation processes, including:
independent price verification performed by a
management expert; and
model governance and validation.
On a sample basis, our valuation experts performed
an independent reassessment of the valuation of
derivatives, to ensure compliance with the relevant
RBI regulations, reasonableness of
the valuation
methodology and the inputs used.
We also challenged the appropriateness of significant
models and methodologies used in valuation.
Information other than the Standalone Financial Statements and Auditor’s Report thereon
The Bank’s Board of Directors are responsible for the other information. The other information comprises the
information included in the Management’s Discussion and Analysis, Directors’ Report, including annexures to the
Directors’ Report, but does not include the standalone financial statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that
fact. We have nothing to report in this regard.
6.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Bank’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation of these standalone financial statements that give a true and fair view of the financial position, financial
performance and cash flows of the Bank in accordance with the accounting principles generally accepted in India,
including the Accounting Standards prescribed under section 133 of the Act read with rule 7 of the Companies (Accounts)
Rules, 2014 (as amended) and provisions of section 29 of the Banking Regulation Act, 1949 and circulars and guidelines
issued by Reserve Bank of India (‘RBI’) from time to time. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for
preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies;
making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the
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accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
7.
In preparing the financial statements, management is responsible for assessing the Bank’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
8. The Board of Directors is also responsible for overseeing the Bank’s financial reporting process.
9.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
10.
As part of an audit in accordance with Standards on Auditing, we exercise professional judgement and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for explaining our
opinion on whether the Bank has adequate internal financial controls system in place and the operating effectiveness
of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
11.
12.
13.
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INDEPENDENT AUDITORS’ REPORT
14.
Other Matters
We did not audit the financial statements of 3 international branches included in the standalone financial statements of
the Bank whose financial statements reflects total assets of ` 657,940 million as at 31 March 2019, and total revenue
and net cash outflows of ` 22,507 million and ` 5,168 million respectively for the year ended on that date, as considered
in the standalone financial statements. The financial statements of these branches have been audited by the branch
auditors whose reports have been furnished to us by the management, and our opinion on the standalone financial
statements, in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the
report of such branch auditors.
Our opinion on the standalone financial statements is not modified in respect of the above matter.
15.
The financial statements of the Bank for the year ended 31 March 2018 were audited by the predecessor auditors, who
have expressed an unmodified opinion on those financial statements vide their audit report dated 7 May 2018.
16.
Report on Other Legal and Regulatory Requirements
The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with the provisions of
section 29 of the Banking Regulation Act, 1949 and section 133 of the Act read with rule 7 of the Companies (Rules),
2014 (as amended).
17. As required by sub-section (3) of section 30 of the Banking Regulation Act, 1949, 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 purpose of our audit and have found them to be satisfactory;
b)
the transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and
c)
since the key operations of the Bank are automated with the key applications integrated to the core banking
system, the audit is carried out centrally as all the necessary records and data required for the purposes of our
audit are available therein. However, during the course of our audit, we have visited 102 branches to examine the
records maintained at such branches for the purpose of our audit. Further, as stated above, returns from branches
were received duly audited by other auditors and were found adequate for the purpose of our audit.
18. With respect to the matter to be included in the Auditor's Report under section 197(16) of the Act, we report that
since the Bank is a banking company, as defined under Banking Regulation Act, 1949, the reporting under section
197(16) in relation to whether the remuneration paid by the Bank is in accordance with the provisions of sections
197 of the Act and whether any excess remuneration has been paid in accordance with the aforesaid section, is
not applicable.
19. Further, as required by section 143 (3) of the Act, we report that:
a)
b)
c)
d)
e)
we have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary 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 it appears from
our examination of those books and proper returns, adequate for the purposes of our audit, have been received
from the branches not audited by us;
the reports on the accounts of the branch offices of the Bank audited under section 143(8) of the Act by the branch
auditors of the Bank have been sent to us and have been properly dealt with by us in preparing this report;
the standalone financial statements dealt with by this report are in agreement with the books of account and with
the returns received from the international branches not audited by us;
in our opinion, the aforesaid standalone financial statements comply with Accounting Standards prescribed under
section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014 (as amended), to the extent they
are not inconsistent with the accounting policies prescribed by RBI;
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INDEPENDENT AUDITORS’ REPORT
f)
g)
h)
on the basis of the written representations received from the directors as on 31 March 2019 and taken on record
by the Board of Directors, none of the directors is disqualified as on 31 March 2019 from being appointed as a
director in terms of section 164(2) of the Act;
we have also audited the internal financial controls over financial reporting (IFCoFR) of the Bank as on
31 March 2019 in conjunction with our audit of the standalone financial statements of the Bank for the year ended
on that date and our report dated 06 May 2019 as per Annexure A expressed an unmodified opinion;
with respect to the other matters to be included in the Auditor’s Report in accordance with rule 11 of the Companies
(Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to
the explanations given to us:
i.
ii.
iii.
iv.
the Bank, as detailed in schedule 18.40 to the standalone financial statements, has disclosed the impact of
pending litigations on its financial position as at 31 March 2019;
the Bank, as detailed in schedule 18.40 to the standalone financial statements, has made provision as at
31 March 2019, as required under the applicable law or Accounting Standards, for material foreseeable
losses, if any, on long-term contracts including derivative contracts;
there has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Bank during the year ended 31 March 2019;
the disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable
for the period from 8 November 2016 to 30 December 2016, which are not relevant to these standalone
financial statements. Hence, reporting under this clause is not applicable.
Place: Mumbai
Date: 06 May 2019
For Walker Chandiok & Co LLP
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Khushroo B. Panthaky
Partner
Membership No.: 042423
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INDEPENDENT AUDITORS’ REPORT
ANNEXURE A to the Independent Auditor’s Report of even date to the members of ICICI
Bank Limited on the standalone financial statements for the year ended 31 March 2019
1.
2.
3.
4.
5.
6.
Independent Auditor’s Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143
of the Companies Act, 2013 (‘the Act’)
In conjunction with our audit of the standalone financial statements of ICICI Bank Limited (‘the Bank’) as at and for
the year ended 31 March 2019, we have audited the internal financial controls over financial reporting (‘IFCoFR’) of
the Bank as at that date.
Management’s Responsibility for Internal Financial Controls
The Bank’s Management is responsible for establishing and maintaining internal financial controls based on the
internal control over financial reporting criteria established by the Bank considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued
by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of the Bank’s business, including adherence to the Bank’s policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and
the timely preparation of reliable financial information, as required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Bank's IFCoFR based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (‘ICAI’) and
deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (‘the Guidance Note’) issued by
the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether adequate IFCoFR were established and maintained
and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and their
operating effectiveness. Our audit of IFCoFR includes obtaining an understanding of IFCoFR, assessing the risk that
a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the Bank’s IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
An enitity's IFCoFR is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. An entity's IFCoFR include those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of
the entity; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures
of the entity are being made only in accordance with authorisations of management and directors of the entity; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the entity's assets that could have a material effect on the financial statements.
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INDEPENDENT AUDITORS’ REPORT
ANNEXURE A (Contd.)
7.
8.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Owing to the inherent limitations of IFCoFR, including the possibility of collusion or improper management override
of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the IFCoFR to future periods are subject to the risk that the IFCoFR may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Bank has, in all material respects, adequate internal financial controls over financial reporting and
such controls were operating effectively as at 31 March 2019, based on the internal control over financial reporting
criteria established by the Bank considering the essential components of internal control stated in the Guidance Note
on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
Place: Mumbai
Date: 06 May 2019
For Walker Chandiok & Co LLP
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Khushroo B. Panthaky
Partner
Membership No.: 042423
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ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
BALANCE SHEET
at March 31, 2019
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
TOTAL ASSETS
Contingent liabilities
Bills for collection
Significant accounting policies and notes to accounts
Schedule
At
31.03.2019
` in ‘000s
At
31.03.2018
1
2
3
4
5
6
7
8
9
10
11
12
17 & 18
12,894,598
46,755
1,070,739,063
6,529,196,711
1,653,199,742
378,514,609
9,644,591,478
12,858,100
55,699
1,038,675,565
5,609,752,085
1,828,586,206
301,963,958
8,791,891,613
378,580,118
424,382,742
2,077,326,800
5,866,465,827
79,314,287
818,521,704
9,644,591,478
331,023,817
510,669,991
2,029,941,808
5,123,952,856
79,035,149
717,267,992
8,791,891,613
19,220,382,868
493,919,862
12,892,440,018
285,883,604
The Schedules referred to above form an integral part of the Unconsolidated Balance Sheet.
As per our Report of even date.
For and on behalf of the Board of Directors
For Walker Chandiok & Co LLP
Chartered Accountants
ICAI Firm Registration no.:
001076N/N500013
Khushroo B. Panthaky
Partner
Membership no.: 042423
Place: Mumbai
Date: May 6, 2019
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Vishakha Mulye
Executive Director
DIN-00203578
Sandeep Batra
President
Ajay Mittal
Chief Accountant
Vijay Chandok
Executive Director
DIN-01545262
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Group Chief Financial Officer
Ranganath Athreya
Company Secretary
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ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS FINANCIAL STATEMENTS OF ICICI BANK LIMITED
PROFIT AND LOSS ACCOUNT
for the year ended March 31, 2019
I.
INCOME
Interest earned
Other income
TOTAL INCOME
II. EXPENDITURE
Interest expended
Operating expenses
Provisions and contingencies (refer note 18.40)
TOTAL EXPENDITURE
III. PROFIT/(LOSS)
Net profit/(loss) 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 Capital Redemption Reserve
Transfer to/(from) Investment Reserve Account
Transfer to/(from) Investment Fluctuation Reserve
Transfer to Revenue and other reserves
Transfer to Special Reserve
Dividend paid during the year
Corporate dividend tax paid during the year
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 (`)
Schedule
Year ended
31.03.2019
` in ‘000s
Year ended
31.03.2018
13
14
15
16
17 & 18
634,011,926
145,121,636
779,133,562
549,658,922
174,196,326
723,855,248
363,863,951
180,890,620
200,745,975
745,500,546
319,400,463
157,039,436
179,641,120
656,081,019
33,633,016
184,952,554
218,585,570
67,774,229
187,449,376
255,223,605
8,409,000
7,568
280,000
3,500,000
-
12,692,000
-
5,250,000
9,651,292
7
178,795,703
218,585,570
16,944,000
10,541
25,654,600
-
-
-
7,000,000
6,000,000
14,574,649
87,261
184,952,554
255,223,605
5.23
5.17
2.00
10.56
10.46
2.00
The Schedules referred to above form an integral part of the Unconsolidated Profit and Loss Account.
As per our Report of even date.
For and on behalf of the Board of Directors
For Walker Chandiok & Co LLP
Chartered Accountants
ICAI Firm Registration no.:
001076N/N500013
Khushroo B. Panthaky
Partner
Membership no.: 042423
Place: Mumbai
Date: May 6, 2019
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Vishakha Mulye
Executive Director
DIN-00203578
Sandeep Batra
President
Ajay Mittal
Chief Accountant
Vijay Chandok
Executive Director
DIN-01545262
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Group Chief Financial Officer
Ranganath Athreya
Company Secretary
153
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CASH FLOW STATEMENT
for the year ended March 31, 2019
Cash flow from/(used in) operating activities
Profit/(loss) before taxes
Adjustments for:
Depreciation and amortisation
Net (appreciation)/depreciation on investments1
Provision in respect of non-performing and other assets
General provision for standard assets
Provision for contingencies & others
Income from subsidiaries, joint ventures and consolidated entities
(Profit)/loss on sale of fixed assets
Adjustments for:
(Increase)/decrease in investments
(Increase)/decrease in advances
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 (i)+(ii)+(iii)
Cash flow from/(used in) investing activities
Redemption/sale from/(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 flow from/(used in) investing activities
Cash flow from/(used in) financing activities
Proceeds from issue of share capital (including ESOPs)
Proceeds from long-term borrowings
Repayment of long-term borrowings
Net proceeds/(repayment) of short-term borrowings
Dividend and dividend tax paid
Net cash flow from/(used in) financing activities
Effect of exchange fluctuation on translation reserve
Net increase/(decrease) in cash and cash equivalents
(A) + (B) + (C) + (D)
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
1.
Year ended
31.03.2019
` in ‘000s
Year ended
31.03.2018
37,767,625
74,345,555
8,728,507
(228,192)
168,111,998
2,553,682
22,383,465
(10,779,490)
(1,919)
228,535,676
195,917,120
(906,414,812)
919,444,626
(37,800,079)
51,681,004
222,827,859
(67,175,650)
384,187,885
11,383,004
10,779,490
(8,309,176)
380,294
(252,986,732)
(238,753,120)
3,486,300
144,363,924
(202,012,943)
(118,696,850)
(9,651,299)
(182,510,868)
(1,654,845)
8,926,673
(24,564,830)
142,445,162
2,771,076
9,080,155
(12,140,645)
(38,027)
200,825,119
23,193,089
(648,694,293)
709,361,437
(66,412,242)
(52,290,284)
(34,842,293)
(32,946,347)
133,036,479
60,860,496
12,140,645
(8,240,963)
219,081
(454,667,276)
(389,688,017)
3,939,495
339,671,083
(329,302,704)
341,537,066
(14,661,910)
341,183,030
31,702
(i)
(ii)
(iii)
(A)
(B)
(C)
(D)
84,563,194
757,130,614
841,693,808
For the year ended March 31, 2019, includes gain on sale of a part of equity investment in a subsidiary, ICICI Prudential Life Insurance
Company Limited, through an offer for sale on stock exchanges (year ended March 31, 2018: includes gain on sale of a part of equity
investment in the subsidiaries, ICICI Lombard General Insurance Company Limited and ICICI Securities Limited, through initial public offers).
(38,730,948)
841,693,808
802,962,860
2.
Cash and cash equivalents include cash in hand, balances with RBI, balances with other banks and money at call and short notice.
As per our Report of even date.
For and on behalf of the Board of Directors
For Walker Chandiok & Co LLP
Chartered Accountants
ICAI Firm Registration no.:
001076N/N500013
Khushroo B. Panthaky
Partner
Membership no.: 042423
Place: Mumbai
Date: May 6, 2019
154
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Vishakha Mulye
Executive Director
DIN-00203578
Sandeep Batra
President
Ajay Mittal
Chief Accountant
Vijay Chandok
Executive Director
DIN-01545262
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Group Chief Financial Officer
Ranganath Athreya
Company Secretary
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Balance Sheet
SCHEDULE 1 - CAPITAL
Authorised capital
12,500,000,000 equity shares of ` 2 each1 (March 31, 2018: 10,000,000,000
equity shares of ` 2 each, 15,000,000 shares of ` 100 each2 and 350 preference
shares of ` 10.0 million each)
Equity share capital
Issued, subscribed and paid-up capital
6,427,990,776 equity shares of ` 2 each (March 31, 2018: 5,824,476,135
equity shares)
Add: 18,248,8773 equity shares of ` 2 each (March 31, 2018: 603,514,6413,4
equity shares) issued during the period
At
31.03.2019
` in ‘000s
At
31.03.2018
25,000,000
25,000,000
12,855,981
11,648,952
36,498
12,892,479
2,119
12,894,598
1,207,029
12,855,981
2,119
12,858,100
Add: Forfeited equity shares5
TOTAL CAPITAL
1.
Pursuant to the approval of shareholders, the Bank has re-classified its authorised share capital during the year ended March 31, 2019.
2.
3.
4.
These shares were 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.
Represents equity shares issued pursuant to exercise of employee stock options during the year ended March 31, 2019 (year ended March
31, 2018: 20,530,097 equity shares).
For the year ended March 31, 2018, includes 582,984,544 equity shares issued as bonus shares pursuant to approval by the shareholders
of the Bank through postal ballot on June 12, 2017.
5.
On account of forfeiture of 266,089 equity shares of ` 10 each.
SCHEDULE 2 - RESERVES AND SURPLUS
I.
Statutory reserve
Opening balance
Additions during the year
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 year1
Deductions during the year2
Closing balance
IV.
Investment reserve account
Opening balance
Additions during the year
Deductions during the year
Closing balance
At
31.03.2019
228,968,519
8,409,000
-
237,377,519
89,790,000
5,250,000
-
95,040,000
325,709,362
3,451,496
-
329,160,858
-
-
-
-
` in ‘000s
At
31.03.2018
212,024,519
16,944,000
-
228,968,519
83,790,000
6,000,000
-
89,790,000
322,970,033
3,905,298
(1,165,969)
325,709,362
-
-
-
-
155
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
V.
Investment fluctuation reserve
Opening balance
Additions during the year3
Deductions during the year
Closing balance
VI. Capital reserve
Opening balance
Additions during the year4
Deductions during the year
Closing balance
VII. Capital redemption reserve
Opening balance
Additions during the year5
Deductions during the year
Closing balance
VIII. Foreign currency translation reserve
Opening balance
Additions during the year
Deductions during the year
Closing balance
IX. Revaluation reserve (refer note 18.34)
Opening balance
Additions during the year6
Deductions during the year7
Closing balance
X. Reserve fund
Opening balance
Additions during the year8
Deductions during the year
Closing balance
XI. Revenue and other reserves
Opening balance
Additions during the year
Deductions during the year
Closing balance
XII. Balance in profit and loss account9
TOTAL RESERVES AND SURPLUS
1.
Represents amount on account of exercise of employee stock options.
At
31.03.2019
-
12,692,000
-
12,692,000
128,261,725
280,000
-
128,541,725
-
3,500,000
-
3,500,000
16,563,360
-
(1,654,845)
14,908,515
30,031,905
1,023,923
(610,735)
30,445,093
66,400
7,568
-
73,968
` in ‘000s
At
31.03.2018
-
-
-
-
102,607,125
25,654,600
-
128,261,725
-
-
-
-
16,531,658
31,702
-
16,563,360
30,421,420
249,101
(638,616)
30,031,905
55,858
10,542
-
66,400
39,585,696
617,986
-
40,203,682
178,795,703
1,070,739,063
31,947,081
7,638,615
-
39,585,696
179,698,598
1,038,675,565
2.
3.
Represents amount utilised on account of issuance of bonus shares during the year ended March 31, 2018.
Represents an amount transferred to Investment Fluctuation Reserve (IFR) on net profit on sale of AFS and HFT investments during the
year. As per the RBI circular, from the year ended March 31, 2019, an amount not less than the lower of net profit on sale of AFS and HFT
category investments during the year or net profit for the year less mandatory appropriations is required to be transferred to IFR, until the
amount of IFR is at least 2% of the HFT and AFS portfolio.
4.
Represents appropriations made for profit on sale of investments in held-to-maturity category, net of taxes and transfer to Statutory
Reserve and profit on sale of land and buildings, net of taxes and transfer to Statutory Reserve.
156
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS 5.
6.
7.
8.
9.
Represents amount transferred from accumulated profit on account of Redeemable Non-Cumulative Preference Shares (350 RNCPS) of
` 10.0 million each redeemed at par on April 20, 2018. The Bank has created Capital redemption reserve, as required under the Companies
Act, 2013, out of surplus profits available for previous years.
Represents gain on revaluation of premises carried out by the Bank.
Represents amount transferred from Revaluation Reserve to General Reserve on account of incremental depreciation charge on revaluation
amounting to ` 584.8 million (year ended March 31, 2018: ` 572.4 million) and revaluation surplus on assets sold amounting to ` 25.9
million (year ended March 31, 2018: ` 66.2 million) for the year ended March 31, 2019.
Represents appropriations made to Reserve Fund in accordance with regulations applicable to Sri Lanka branch.
During the year ended March 31, 2018, the Bank made provision amounting to ` 5,254.0 million for frauds on non-retail accounts through
reserves and surplus, as permitted by RBI. During year ended March 31, 2019, the entire provision has been recognised in profit and loss
account and equivalent debit has been reversed in reserves and surplus as required by RBI.
SCHEDULE 3 - DEPOSITS
A.
Demand deposits
I.
i)
ii)
From banks
From others
Savings bank deposits
II.
III. Term deposits
i)
ii)
From banks
From others
TOTAL DEPOSITS
B.
Deposits of branches in India
I.
II. Deposits of branches outside India
TOTAL DEPOSITS
SCHEDULE 4 - BORROWINGS
I. Borrowings in India
Reserve Bank of India
i)
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)
v) Application money-bonds
vi) Capital instruments
a)
Innovative Perpetual Debt Instruments (IPDI)
(qualifying as additional Tier-1 capital)
b) Hybrid debt capital instruments issued as bonds/debentures
(qualifying as Tier-2 capital)
c) Redeemable Non-Cumulative Preference Shares
(350 RNCPS of ` 10.0 million each issued to preference share
holders of erstwhile ICICI Limited on amalgamation, redeemed at
par on April 20, 2018)
At
31.03.2019
` in ‘000s
At
31.03.2018
74,379,016
888,315,153
2,276,709,040
66,198,901
823,383,452
2,009,670,527
165,000,950
3,124,792,552
6,529,196,711
115,526,501
2,594,972,704
5,609,752,085
6,474,983,663
54,213,048
6,529,196,711
5,560,172,442
49,579,643
5,609,752,085
At
31.03.2019
` in ‘000s
At
31.03.2018
35,000,000
8,644,375
115,920,000
26,811,250
-
233,005,364
-
228,142,451
197,590,424
-
209,052,250
-
101,200,000
94,800,000
33,800,000
84,035,112
-
3,500,000
157
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
d) Unsecured redeemable debentures/bonds
(subordinated debt included in Tier-2 capital)
TOTAL BORROWINGS IN INDIA
II. Borrowings outside India
At
31.03.2019
` in ‘000s
At
31.03.2018
135,347,140
744,587,303
136,007,107
898,268,170
Capital instruments
i)
ii)
Bonds and notes
iii) Other borrowings
-
414,847,916
515,470,120
930,318,036
1,828,586,206
Secured borrowings in I and II above amount to Nil (March 31, 2018: Nil) except borrowings of ` 61,716.3 million (March 31, 2018:
` 164,562.5 million) under collateralised borrowing and lending obligation, market repurchase transactions (including tri-party repo) with
banks and financial institutions and transactions under liquidity adjustment facility and marginal standing facility.
TOTAL BORROWINGS OUTSIDE INDIA
TOTAL BORROWINGS
1.
-
428,236,204
480,376,235
908,612,439
1,653,199,742
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
Bills payable
I.
Inter-office adjustments (net)
II.
III.
Interest accrued
IV. Sundry creditors
V. General provision for standard assets (refer note 18.20)
VI. Others (including provisions)1
TOTAL OTHER LIABILITIES AND PROVISIONS
1.
Includes specific provision for standard loans amounting to ` 4,769.0 million (March 31, 2018: ` 7,967.1 million).
At
31.03.2019
83,343,117
717,556
33,721,860
92,952,935
28,737,645
139,041,496
378,514,609
At
31.03.2019
` in ‘000s
At
31.03.2018
71,724,980
976,360
32,725,823
65,150,053
25,906,623
105,480,119
301,963,958
` in ‘000s
At
31.03.2018
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA
Cash in hand (including foreign currency notes)
I.
II.
Balances with Reserve Bank of India in current accounts
TOTAL CASH AND BALANCES WITH RESERVE BANK OF INDIA
87,038,841
291,541,277
378,580,118
80,447,910
250,575,907
331,023,817
158
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL
AND SHORT NOTICE
I.
In India
i)
Balances with banks
a)
b)
In current accounts
In other deposit accounts
ii) Money at call and short notice
a) With banks
b) With other institutions
TOTAL
II. Outside India
i)
In current accounts
In other deposit accounts
ii)
iii) Money at call and short notice
TOTAL
TOTAL BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
SCHEDULE 8 - INVESTMENTS
I.
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)
vi) Others (commercial paper, mutual fund units, pass through
Subsidiaries and/or joint ventures1
certificates, security receipts, certificate of deposits and other
related investments)
TOTAL INVESTMENTS IN INDIA
II.
Investments outside India [net of provisions]
i)
ii)
Government securities
Subsidiaries and/or joint ventures abroad
(includes equity and preference shares)
iii) Others (equity shares, bonds and certificate of deposits)
TOTAL INVESTMENTS OUTSIDE INDIA
TOTAL INVESTMENTS
At
31.03.2019
` in ‘000s
At
31.03.2018
2,626,426
5,066,921
2,770,626
2,078,261
89,457,750
13,410,213
110,561,310
143,207,910
48,901,848
121,711,674
313,821,432
424,382,742
At
31.03.2019
190,613,750
26,044,514
221,507,151
167,043,020
43,441,376
78,678,444
289,162,840
510,669,991
` in ‘000s
At
31.03.2018
1,479,230,542
-
18,840,258
142,328,392
61,201,686
1,391,852,905
-
23,780,704
153,889,101
61,488,797
312,175,395
2,013,776,273
331,088,034
1,962,099,541
20,026,853
23,477,202
36,826,862
6,696,812
63,550,527
2,077,326,800
36,826,862
7,538,203
67,842,267
2,029,941,808
159
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
At
31.03.2019
` in ‘000s
At
31.03.2018
2,062,886,134
49,109,861
2,013,776,273
2,003,754,441
41,654,900
1,962,099,541
B.
A.
Investments in India
Gross value of investments
Less: Aggregate of provision/depreciation/(appreciation)
Net investments
Investments outside India
Gross value of investments
Less: Aggregate of provision/depreciation/(appreciation)
Net investments
TOTAL INVESTMENTS
1.
73,275,153
5,432,886
67,842,267
2,029,941,808
During the year ended March 31, 2019, the Bank sold a part of its equity investment in a subsidiary, ICICI Prudential Life Insurance Company
Limited, through an offer for sale on stock exchanges (year ended March 31, 2018: the Bank sold a part of its equity investment in the
subsidiaries, ICICI Lombard General Insurance Company Limited and ICICI Securities Limited, through initial public offers).
64,377,243
826,716
63,550,527
2,077,326,800
2.
Refer note 18.11 - Investments and note 18.12 - Non-SLR Investments.
SCHEDULE 9 - ADVANCES [net of provisions]
A.
Bills purchased and discounted1
Cash credits, overdrafts and loans repayable on demand
i)
ii)
iii) Term loans
TOTAL ADVANCES
Secured by tangible assets (includes advances against book debts)
Covered by bank/government guarantees
B.
i)
ii)
iii) Unsecured
TOTAL ADVANCES
I.
C.
Advances in India
Priority sector
i)
ii)
Public sector
iii) Banks
iv) Others
TOTAL ADVANCES IN INDIA
II. Advances outside India
i)
Due from banks
ii) Due from others
Bills purchased and discounted
a)
b) Syndicated and term loans
c) Others
TOTAL ADVANCES OUTSIDE INDIA
TOTAL ADVANCES
1.
Net of bills re-discounted amounting to Nil (March 31, 2018: Nil).
160
At
31.03.2019
` in ‘000s
At
31.03.2018
346,315,071
1,458,967,622
4,061,183,134
5,866,465,827
282,717,624
1,302,545,244
3,538,689,988
5,123,952,856
4,139,796,885
111,759,404
1,614,909,538
5,866,465,827
3,772,296,920
81,194,562
1,270,461,374
5,123,952,856
1,696,365,965
146,431,801
3,253,967
3,390,090,132
5,236,141,865
929,701,682
197,704,530
777,335
3,351,468,495
4,479,652,042
18,471,145
18,706,876
149,622,161
308,156,810
154,073,846
630,323,962
5,866,465,827
89,025,272
379,320,030
157,248,636
644,300,814
5,123,952,856
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
SCHEDULE 10 - FIXED ASSETS
I.
Premises
Gross block
At cost at March 31 of preceding year
Additions during the year1
Deductions during the year
Closing balance
Less: Depreciation to date2
Net block3
II. Other fixed assets (including furniture and fixtures)
Gross block
At cost at March 31 of preceding year
Additions during the year
Deductions during the year
Closing balance
Less: Depreciation to date4
Net block
III. Assets given on lease
At
31.03.2019
` in ‘000s
At
31.03.2018
73,921,124
2,125,674
(505,208)
75,541,590
(15,309,915)
60,231,675
72,701,320
1,501,268
(281,464)
73,921,124
(13,795,329)
60,125,795
59,585,000
6,368,177
(6,521,259)
59,431,918
(42,763,904)
16,668,014
53,522,935
7,493,392
(1,431,327)
59,585,000
(43,090,256)
16,494,744
Gross block
At cost at March 31 of preceding year
Additions during the year
Deductions during the year
Closing balance
Less: Depreciation to date, accumulated lease adjustment and provisions5
Net block
16,904,628
-
(189,999)
16,714,629
(14,300,019)
2,414,610
79,035,149
Includes revaluation gain amounting to ` 1,023.9 million (March 31, 2018: ` 249.1 million) on account of revaluation carried out by the Bank.
16,714,629
-
-
16,714,629
(14,300,031)
2,414,598
79,314,287
TOTAL FIXED ASSETS
1.
2.
3.
4.
5.
Includes depreciation charge amounting to ` 1,789.2 million for the year ended March 31, 2019 (year ended March 31, 2018: ` 1,754.3
million), including depreciation charge on account of revaluation of ` 584.8 million for the year ended March 31, 2019 (year ended March
31, 2018: ` 572.4 million).
Includes assets of ` 22.2 million (March 31, 2018: ` 37.4 million) which are held for sale.
Includes depreciation charge amounting to ` 5,979.9 million for the year ended March 31, 2019 (year ended March 31, 2018: ` 6,053.1 million).
The depreciation charge/lease adjustment/provisions is an insignificant amount for the year ended March 31, 2019 (year ended March 31,
2018: insignificant amount).
161
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
At
31.03.2019
` in ‘000s
At
31.03.2018
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
V. Non-banking assets acquired in satisfaction of claims1,2
VI. Advances for capital assets
VII. Deposits
VIII. Deferred tax assets (net) (refer note 18.42)
IX. Deposits in Rural Infrastructure and Development Fund
X. Others3
TOTAL OTHER ASSETS
1.
-
69,899,215
61,699,162
1,375
19,650,832
1,215,031
14,146,176
74,770,217
269,249,912
206,636,072
717,267,992
During the year ended March 31, 2019, the Bank has not acquired any assets (year ended March 31, 2018: ` 952.6 million) in satisfaction
of claims under debt-asset swap transactions. No assets were sold during the year ended March 31, 2019 (year ended March 31, 2018:
` 279.1 million).
-
76,326,429
95,268,761
973
10,040,166
1,802,579
14,078,922
104,365,701
292,545,621
224,092,552
818,521,704
2.
3.
Represents balance net of provision held amounting to ` 22,147.3 million (March 31, 2018: ` 13,184.2 million).
For the year ended March 31, 2018, includes receivable amounting to ` 3,988.7 million pertaining to a non-performing loan sold during the
year ended March 31, 2018, which was received by the Bank on April 2, 2018.
Claims against the Bank not acknowledged as debts
Liability for partly paid investments
SCHEDULE 12 - CONTINGENT LIABILITIES
I.
II.
III. Liability on account of outstanding forward exchange contracts1
IV. Guarantees given on behalf of constituents
a)
In India
b) Outside India
Interest rate swaps, currency options and interest rate futures1
V. Acceptances, endorsements and other obligations
VI. Currency swaps1
VII.
VIII. Other items for which the Bank is contingently liable
TOTAL CONTINGENT LIABILITIES
1.
Represents notional amount.
At
31.03.2019
` in ‘000s
At
31.03.2018
55,009,794
12,455
4,701,000,557
62,660,192
12,455
4,326,689,229
855,465,382
211,192,112
433,788,146
423,344,515
12,441,817,000
98,752,907
19,220,382,868
747,815,379
197,543,699
410,036,446
416,989,369
6,592,928,249
137,765,000
12,892,440,018
2.
There has been a Supreme Court judgement dated February 28, 2019, relating to components of salary structure that need to be taken
into account while computing the contribution to provident fund under the Employees Provident Fund (EPF) Act. There are interpretative
aspects related to the Judgement including the effective date of application. The Bank will continue to assess any further developments in
this matter for the implications on financial statements, if any.
162
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Year ended
31.03.2019
479,426,244
127,968,772
7,360,862
19,256,048
634,011,926
Year ended
31.03.2019
102,318,773
13,006,602
387,624
1,919
17,711,181
` in ‘000s
Year ended
31.03.2018
408,662,070
115,681,704
6,633,788
18,681,360
549,658,922
` in ‘000s
Year ended
31.03.2018
87,894,054
63,058,535
(5,161,974)
38,027
15,431,519
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Profit and Loss Account
Interest/discount on advances/bills
Income on investments
Interest on balances with Reserve Bank of India and other inter-bank funds
SCHEDULE 13 - INTEREST EARNED
I.
II.
III.
IV. Others1,2
TOTAL INTEREST EARNED
1.
Includes interest on income tax refunds amounting to ` 4,482.3 million (March 31, 2018: ` 2,625.9 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.
Profit/(loss) on sale of investments (net)1
II.
III. Profit/(loss) on revaluation of investments (net)
IV. Profit/(loss) on sale of land, buildings and other assets (net)2
Profit/(loss) on exchange/derivative transactions (net)
V.
Income earned by way of dividends, etc. from subsidiary companies and/or
VI.
joint ventures abroad/in India
VII. Miscellaneous income (including lease income)
TOTAL OTHER INCOME
1.
12,140,645
795,520
174,196,326
For the year ended March 31, 2019, includes gain on sale of a part of equity investment in a subsidiary, ICICI Prudential Life Insurance
Company Limited, through an offer for sale on stock exchanges (year ended March 31, 2018: gain on sale of a part of equity investment in
the subsidiaries, ICICI Lombard General Insurance Company Limited and ICICI Securities Limited, through initial public offers). Refer note
18.11 - Investments.
10,779,490
916,047
145,121,636
2.
Includes profit/(loss) on sale of assets given on lease.
Interest on deposits
Interest on Reserve Bank of India/inter-bank borrowings
SCHEDULE 15 - INTEREST EXPENDED
I.
II.
III. Others (including interest on borrowings of erstwhile ICICI Limited)
TOTAL INTEREST EXPENDED
Year ended
31.03.2019
265,246,797
15,907,990
82,709,164
363,863,951
` in ‘000s
Year ended
31.03.2018
234,287,704
9,493,244
75,619,515
319,400,463
163
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Profit and Loss Account (Contd.)
Payments to and provisions for employees
Rent, taxes and lighting1
SCHEDULE 16 - OPERATING EXPENSES
I.
II.
III. Printing and stationery
IV. Advertisement and publicity
V. 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
X. Postages, courier, telephones, etc.
XI. Repairs and maintenance
XII. Insurance
XIII. Direct marketing agency expenses
XIV. Other expenditure2
TOTAL OPERATING EXPENSES
1.
Includes lease expense amounting to ` 9,236.7 million (March 31, 2018: ` 8,966.3 million).
Year ended
31.03.2019
68,082,380
11,988,705
2,056,233
7,290,475
7,769,089
13
36,766
89,675
1,077,091
4,068,143
15,384,867
6,504,334
15,971,240
40,571,609
180,890,620
` in ‘000s
Year ended
31.03.2018
59,139,503
11,763,808
1,770,857
4,013,714
7,807,420
12
15,292
83,883
805,748
3,728,904
14,856,619
5,484,575
13,035,643
34,533,458
157,039,436
2.
Net of recoveries from group companies towards shared services.
164
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts
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. The Bank also has overseas branches in Bahrain,
China, Dubai, Hong Kong, Singapore, South Africa, Sri Lanka, United States of America and Offshore Banking units.
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 and the Accounting Standards notified under Section 133 of the
Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 to the extent applicable
and practices generally prevalent in the banking industry in India. The Bank follows the historical cost convention and the
accrual method of accounting, except in the case of interest and other income on non-performing assets (NPAs) where
it is recognised upon realisation.
The preparation of 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 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. Actual results could differ from these estimates.
The impact of any revision in these estimates is recognised prospectively from the period of change.
SIGNIFICANT ACCOUNTING POLICIES
1. Revenue recognition
a)
b)
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.
Income from finance 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.
c)
Income on discounted instruments is recognised over the tenure of the instrument on a constant yield basis.
d) Dividend income is accounted on 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)
j)
The annual/renewal fee on credit cards and debit cards are amortised on a straight line basis over one year.
Fees paid/received for priority sector lending certificates (PSLC) is amortised on straight-line basis over the
period of the certificate.
k) All other fees are accounted for as and when they become due.
l)
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.
m)
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.
165
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
2.
Investments
Investments are accounted for in accordance with the extant RBI guidelines on investment classification and
valuation as given below.
1.
2.
3.
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 closing quotes on the recognised stock exchanges
or prices declared by Primary Dealers Association of India (PDAI) jointly with Fixed Income Money Market and
Derivatives Association (FIMMDA)/Financial Benchmark India Private Limited (FBIL), periodically.
The market/fair value of unquoted government securities which are in 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/FBIL. The valuation of other unquoted fixed income securities, including Pass Through Certificates,
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. The sovereign foreign securities
and non-INR India linked bonds are valued on the basis of prices published by the sovereign regulator or
counterparty quotes.
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. Depreciation/appreciation on securities, other than those acquired by way
of conversion of outstanding loans, is aggregated for each category. Net appreciation in each category
under each investment classification, if any, being unrealised, is ignored, while net depreciation is provided
for. The depreciation on securities acquired by way of conversion of outstanding loans is fully provided for.
Non-performing investments are identified based on the RBI guidelines.
4.
Treasury bills, commercial papers and certificate of deposits being discounted instruments, are valued
at carrying cost.
5. The units of mutual funds are valued at the latest repurchase price/net asset value declared by the mutual fund.
6.
7.
8.
Costs including brokerage and commission pertaining to investments, paid at the time of acquisition, are charged
to the profit and loss account. Cost of investments is computed based on the First-In-First-Out (FIFO) method.
Equity investments in subsidiaries/joint ventures are classified under ‘Held to Maturity’ and ’Available for Sale’.
The Bank assesses these investments for any permanent diminution in value and appropriate provisions are made.
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.
9.
Market repurchase, reverse repurchase and transactions with RBI under Liquidity Adjustment Facility (LAF) are
accounted for as borrowing and lending transactions in accordance with the extant RBI guidelines.
10. 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.
166
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
11. 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. The security receipts which are outstanding and
not redeemed as at the end of the resolution period are treated as loss assets and are fully provided for.
12.
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.
13. The Bank undertakes short sale transactions in dated central government securities in accordance with RBI
guidelines. The short positions are categorised under HFT category and are marked to market. The mark-to-market
loss is charged to profit and loss account and gain, if any, is ignored as per RBI guidelines.
3. Provision/write-offs on loans and other credit facilities
The Bank classifies its loans and investments, including at overseas branches and overdues arising from crystallised
derivative contracts, into performing and NPAs in accordance with RBI guidelines. Loans and advances held at the
overseas branches that are identified as impaired as per host country regulations for reasons other than record of
recovery, but which are standard as per the extant RBI guidelines, are classified as NPAs to the extent of amount
outstanding in the host country. Further, NPAs are classified into sub-standard, doubtful and loss assets based on
the criteria stipulated by RBI.
In the case of corporate loans and advances, 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 loans and 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. For loans and advances booked in overseas branches, which are NPAs as per the extant RBI
guidelines and as per host country guidelines, provisions are made at the higher of the provisions required under
RBI regulations and host country regulations. Provisions on homogeneous retail loans and advances, subject to
minimum provisioning requirements of RBI, are assessed on the basis of the ageing of the loans in the non-performing
category. As per RBI guidelines, in respect of non-retail loans reported as fraud to RBI and classified in doubtful
category, the entire amount, without considering the value of security, is provided for over a period not exceeding
four quarters starting from the quarter in which fraud has been detected. In respect of non-retail loans where there
has been delay in reporting the fraud to the RBI or which are classified as loss accounts, the entire amount is
provided immediately. In case of fraud in retail accounts, the entire amount is provided immediately. In respect of
borrowers classified as non-cooperative borrowers or willful defaulters, the Bank makes accelerated provisions as
per extant RBI guidelines.
The Bank holds specific provisions against non-performing loans and advances and against certain performing
loans and advances in accordance with RBI directions, including RBI direction for provision on accounts referred to
the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016. The assessment of
incremental specific provisions is made after taking into consideration the existing specific provision held. The specific
provisions on retail loans and advances held by the Bank are higher than the minimum regulatory requirements.
a)
Provision due to diminution in the fair value of restructured/rescheduled loans and advances is made in
accordance with the applicable RBI guidelines.
Non-performing and restructured loans are upgraded to standard as per the extant RBI guidelines.
b)
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.
The Bank maintains general provision on performing loans and advances in accordance with the RBI guidelines,
including provisions on loans to borrowers having unhedged foreign currency exposure, provisions on loans
to specific borrowers in specific stressed sectors, provision on exposures to step-down subsidiaries of
167
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
d)
e)
Indian companies and provision on incremental exposure to borrowers identified as per RBI’s large exposure
framework. For performing loans and advances in overseas branches, the general provision is made at higher
of host country regulations requirement and RBI requirement.
In addition to the provisions required to be held according to the asset classification status, provisions are
held for individual country exposures including indirect country risk (other than for home country exposure).
The countries are categorised into seven risk categories namely insignificant, low, moderately low, moderate,
moderately high, high and very high, and provisioning is made on exposures exceeding 180 days on a graded
scale ranging from 0.25% to 25%. 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. The indirect exposure is
reckoned at 50% of the exposure. 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.
The Bank makes floating provision as per the Board approved policy, which is in addition to the specific and
general provisions made by the Bank. The floating provision is utilised, with the approval of Board and RBI, in
case of contingencies which do not arise in the normal course of business and are exceptional and non-recurring
in nature and for making specific provision for impaired loans as per the requirement of extant RBI guidelines or
any regulatory guidance/instructions. The floating provision is netted-off from advances.
4. 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. With effect from May 7, 2012, the RBI guidelines require the profit/premium arising from
securitisation to be amortised over the life of the transaction based on the method prescribed in the guidelines.
In accordance with RBI guidelines, in case of non-performing/special mention account-2 loans sold to securitisation
company (SC)/reconstruction company (RC), the Bank reverses the excess provision in profit and loss account in
the year in which amounts are received. Any shortfall of sale value over the net book value on sale of such assets is
recognised by the Bank in the year in which the loan is sold.
5. Fixed assets
Fixed assets, other than premises, are carried at cost less accumulated depreciation and impairment, if any.
Premises are carried at revalued amount, being fair value at the date of revaluation 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 fixed assets on a straight-line basis. The useful lives of the
groups of fixed assets are given below.
Asset
Premises owned by the Bank
Leased assets and improvements to leasehold premises
ATMs1
Plant and machinery1 (including office equipment)
Electric installations and equipments
Computers
Servers and network equipment1
Furniture and fixtures1
Motor vehicles1
Others (including software and system development expenses)1
1.
Useful life
60 years
60 years or lease period whichever is lower
6 - 8 years1
5 -10 years1
10 - 15 years
3 years
4 – 10 years1
5 – 10 years1
5 years1
4 years1
The useful life of assets is based on historical experience of the Bank, which is different from the useful life as prescribed in Schedule
II to the Companies Act, 2013.
168
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
a)
Assets purchased/sold during the year are depreciated on a pro-rata basis for the actual number of days the
asset has been capitalised.
b)
Items individually costing upto ` 5,000/- are depreciated fully over a period of 12 months from the date of purchase.
c) Assets at residences of Bank’s employees are depreciated over the estimated useful life of 5 years.
d)
In case of revalued/impaired assets, depreciation is provided over the remaining useful life of the assets with
reference to revised asset values. In case of premises, which are carried at revalued amounts, the depreciation
on the excess of revalued amount over historical cost is transferred from Revaluation Reserve to General
Reserve annually.
e)
The profit on sale of premises is appropriated to capital reserve, net of transfer to Statutory Reserve and taxes,
in accordance with RBI guidelines.
Non-banking assets
Non-Banking Assets (NBAs) acquired in satisfaction of claims are carried at lower of net book value and net realisable
value. Further, the Bank creates provision on non-banking assets as per specific RBI directions.
6. 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) relevant to the balance sheet date
and the resulting gains/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 relevant closing exchange rates notified by FEDAI at the balance sheet date and the resulting gains/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. Pursuant to RBI guideline, the Bank does not recognise the
cumulative/proportionate amount of such exchange differences as income or expenses, which relate to repatriation
of accumulated retained earnings from overseas 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 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 relevant to the balance sheet date.
7. Accounting for derivative contracts
The Bank enters into derivative contracts such as interest rate and currency options, interest rate and currency
futures, 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 liabilities and accounted pursuant to the principles of
hedge accounting. Hedge swaps are accounted for on an accrual basis and are not marked to market unless their
underlying transaction is marked to market.
169
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Foreign currency and rupee derivative contracts entered into for trading purposes are marked to market and the
resulting gain or loss 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 options on the Bank’s equity shares 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 and amortised over the vesting period. The fair market
price is the latest closing price, immediately prior to the grant date, which is generally the date of the meeting of
the Board Governance, Remuneration & Nomination Committee 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. Employee Benefits
Gratuity
The Bank pays gratuity, a defined benefit plan, 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. The Bank makes contribution to a trust which administers the funds on its own account or through insurance
companies. The actuarial gains or losses arising during the year are recognised in the profit and loss account.
Actuarial valuation of the gratuity liability 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 and National Pension Scheme
The Bank contributes 15.0% of the total annual basic salary of certain employees to superannuation funds, a defined
contribution plan, managed and administered by insurance companies. Further, the Bank contributes 10.0% of
the total basic salary of certain employees to National Pension Scheme (NPS), a defined contribution plan, which
is managed and administered by pension fund management companies. The Bank also gives an option to its
employees allowing them to receive the amount in lieu of such contributions along with their monthly salary during
their employment.
The amounts so contributed/paid by the Bank to the superannuation fund and NPS or to employees during the year
are recognised in the profit and loss account.
Pension
The Bank provides for pension, a defined benefit plan covering eligible employees of erstwhile Bank of Madura,
erstwhile Sangli Bank and erstwhile Bank of Rajasthan. The Bank makes contribution to a trust which administers
the funds on its own account or through insurance companies. 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.
Actuarial valuation of the pension liability 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. The actuarial gains or losses arising during the year are
recognised in the profit and loss account.
Employees covered by the pension plan are not eligible for employer’s contribution under the provident fund plan.
170
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Provident Fund
The Bank is statutorily required to maintain a provident fund, a defined benefit plan, as a part of retirement benefits to
its employees. Each employee contributes a certain percentage of his or her basic salary and the Bank contributes an
equal amount for eligible employees. The Bank makes contribution as required by The Employees’ Provident Funds
and Miscellaneous Provisions Act, 1952 to Employees’ Pension Scheme administered by the Regional Provident
Fund Commissioner. The Bank makes balance contributions to a fund administered by trustees. 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.
The actuarial gains or losses arising during the year are recognised in the profit and loss account.
The overseas branches of the Bank and its eligible employees contribute a certain percentage of their salary towards
respective government schemes as per local regulatory guidelines. The contribution made by the overseas branches
is recognised in profit and loss account at the time of contribution.
Compensated absences
The Bank provides for compensated absence 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 respectively. Deferred tax
adjustments comprise changes in the deferred tax assets or liabilities during the year.
Deferred tax assets and liabilities are recognised by considering the impact of timing differences between taxable
income and accounting income for the current year, 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. However, in case of unabsorbed depreciation or
carried forward loss, deferred tax assets will be recognised only if there is virtual certainty of realisation of such assets.
Minimum Alternate Tax (MAT) credit is recognised as an asset to the extent there is convincing evidence that the
Bank will pay normal income tax during specified period, i.e. the period for which MAT credit is allowed to be carried
forward as per prevailing provisions of the Income Tax Act, 1961. In accordance with the recommendation contained
in the guidance note issued by ICAI, MAT credit is to be recognised as an asset in the year in which it becomes
eligible for set off against normal income tax. The Bank reviews MAT credit entitlements at each balance sheet date
and writes down the carrying amount to the extent there is no longer convincing evidence to the effect that the Bank
will pay normal income tax during the specified period.
11. Impairment of Assets
The Bank follows revaluation model of accounting for its premises and the recoverable amount of the revalued assets
is considered to be close to its revalued amount. Accordingly, separate assessment for impairment of premises
is not required.
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.
171
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The Bank estimates the probability of redemption of customer loyalty reward points using an actuarial method by
employing an independent actuary and accordingly makes provision for these reward points. Actuarial valuation
is determined based on certain assumptions regarding mortality rate, discount rate, cancellation rate and
redemption rate.
13. Earnings per share (EPS)
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 on straight line basis.
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.
172
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
SCHEDULE 18
NOTES FORMING PART OF THE ACCOUNTS
The following disclosures have been made taking into account the requirements of Accounting Standards (ASs) and
Reserve Bank of India (RBI) guidelines in this regards.
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/(loss) after tax by the weighted average number of equity shares
outstanding during the year. Diluted earnings per equity share is computed using the weighted average number of
equity shares and weighted average number of dilutive potential equity shares outstanding during the year.
The following table sets forth, for the periods indicated, the computation of earnings per share.
Particulars
Basic
Weighted average number of equity shares outstanding
Net profit/(loss) attributable to equity share holders
Basic earnings per share (`)
Diluted
Weighted average no. of equity shares outstanding
Net profit/(loss) attributable to equity share holders
Diluted earnings per share (`)1
Nominal value per share (`)
1.
The dilutive impact is due to options granted to employees by the Bank.
` in million, except per share data
Year ended
March 31, 2018
Year ended
March 31, 2019
6,435,966,473
33,633.0
5.23
6,417,180,759
67,774.2
10.56
6,509,276,099
33,633.0
5.17
2.00
6,482,375,300
67,774.2
10.46
2.00
2. Business/information ratios
The following table sets forth, for the periods indicated, the business/information ratios.
Year ended
March 31, 2019
7.35%
1.68%
2.72%
0.39%
0.4
Year ended
March 31, 2018
7.06%
2.24%
3.18%
0.87%
0.8
Sr.
No.
Particulars
Interest income to working funds1
Non-interest income to working funds1
1.
2.
3. Operating profit to working funds1,2
4.
5.
6.
1.
2.
3.
4.
5.
Return on assets3
Net profit/(loss) per employee4 (` in million)
Business (average deposits plus average advances)
per employee4,5 (` in million)
For the purpose of computing the ratio, working funds represent the monthly average of total assets computed for reporting dates of
Form X submitted to RBI under Section 27 of the Banking Regulation Act, 1949.
107.8
122.2
Operating profit is profit for the year before provisions and contingencies.
For the purpose of computing the ratio, assets represent the monthly average of total assets computed for reporting dates of Form
X submitted to RBI under Section 27 of the Banking Regulation Act, 1949.
Computed based on average number of employees which include 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.
173
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
3. Capital adequacy ratio
The Bank is subject to the Basel III capital adequacy guidelines stipulated by RBI with effect from April 1, 2013.
The guidelines provide a transition schedule for Basel III implementation till March 31, 2020. As per the guidelines,
the Tier-1 capital is made up of Common Equity Tier-1 (CET1) and Additional Tier-1.
At March 31, 2019, Basel III guidelines require the Bank to maintain a minimum Capital to Risk-Weighted Assets Ratio
(CRAR) of 11.025% with minimum CET1 CRAR of 7.525% and minimum Tier-1 CRAR of 9.025%. The minimum total
CRAR, Tier-1 CRAR and CET1 CRAR requirement include capital conservation buffer of 1.875% and additional capital
requirement of 0.15% on account of the Bank being designated as Domestic Systemically Important Bank.
The following table sets forth, for the periods indicated, computation of capital adequacy as per Basel III framework.
Particulars
CET1 CRAR (%)
Tier-1 CRAR (%)
Tier-2 CRAR (%)
Total CRAR (%)
Amount of equity capital raised
Amount of Additional Tier-1 capital raised; of which
a) Perpetual Non-Cumulative Preference Shares
b) Perpetual Debt Instruments
Amount of Tier-2 capital raised; of which
a) Debt Capital Instruments
b) Preference Share Capital Instruments
[Perpetual Cumulative Preference Shares (PCPS)/Redeemable Non-
Cumulative Preference Shares (RNCPS)/Redeemable Cumulative
Preference Shares (RCPS)]
` in million, except percentages
At
March 31, 2018
14.43%
15.92%
2.50%
18.42%
-
At
March 31, 2019
13.63%
15.09%
1.80%
16.89%
-
-
11,400.0
-
55,550.0
-
-
-
-
4. Liquidity coverage ratio
The Basel Committee for Banking Supervision (BCBS) had introduced the liquidity coverage ratio (LCR) in order to
ensure that a bank has an adequate stock of unencumbered high quality liquid assets (HQLA) to survive a significant
liquidity stress lasting for a period of 30 days. LCR is defined as a ratio of HQLA to the total net cash outflows
estimated for the next 30 calendar days. As per the RBI guidelines, the minimum LCR required to be maintained by
banks shall be implemented in a phased manner from January 1, 2015 as given below.
Starting from January 1
Minimum LCR
2015
60.0%
2016
70.0%
2017
80.0%
2018
90.0%
2019
100.0%
174
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
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175
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The Bank during the three months ended March 31, 2019 maintained average HQLA (after haircut) of ` 1,434,622.0
million (March 31, 2018: ` 1,051,010.5 million) against the average liquidity requirement of ` 1,090,941.2 million
(March 31, 2018: ` 842,650.4 million) at minimum LCR requirement of 100.0% (March 31, 2018: 90.0%). HQLA primarily
includes government securities in excess of minimum statutory liquidity ratio (SLR) and to the extent allowed under
marginal standing facility (MSF) and facility to avail liquidity for LCR (FALLCR) of ` 1,189,674.2 million (March 31,
2018: ` 815,035.6 million). With effect from June 15, 2018, RBI permitted banks to reckon an additional 2.0% of their
net demand and time liabilities (NDTL) under FALLCR within the mandatory statutory liquidity requirement (SLR),
as Level 1 high quality liquid assets (HQLA) for the purpose of computing their LCR. Further, in September 2018,
RBI permitted banks to reckon an additional 2.0% of their net demand and time liabilities (NDTL) with effect from
October 1, 2018 under FALLCR within the mandatory statutory liquidity requirement (SLR), as Level 1 high quality
liquid assets (HQLA) for the purpose of computing their LCR. Hence, the carve-out from SLR under FALLCR will
now be 13.0% compared to 9.0% as of March 31, 2018. This takes the total carve out from SLR available to banks at
15.0% of their NDTL including 2.0% of MSF. Additionally, cash balance in excess of cash reserve requirement with
RBI and balances with central banks of countries where the Bank’s branches are located amounted to ` 178,691.5
million (March 31, 2018: ` 160,400.8 million). Further, average level 2 assets primarily consisting of AA- and above
rated corporate bonds and commercial papers, amounted to ` 47,040.3 million (March 31, 2018: ` 50,909.9 million).
At March 31, 2019, top liability products/instruments and their percentage contribution to the total liabilities of the
Bank were term deposits 34.11% (March 31, 2018: 30.83%), savings account deposits 23.61% (March 31, 2018:
22.86%), bond borrowings 9.29% (March 31, 2018: 10.68%) and current account deposits 9.98% (March 31, 2018:
10.12%). Top 20 depositors constituted 5.74% (March 31, 2018: 6.20%) of total deposits of the Bank at March 31,
2019. Further, the total borrowings mobilised from significant counterparties (from whom the funds borrowed were
more than 1.00% of the Bank’s total liabilities) were 7.04% (March 31, 2018: 8.92%) of the total liabilities of the Bank
at March 31, 2019.
The weighted cash outflows are primarily driven by unsecured wholesale funding which includes operational deposits,
non-operational deposits and unsecured debt. During the three months ended March 31, 2019, unsecured wholesale
funding contributed 56.18% (March 31, 2018: 59.32%) of the total weighted cash outflows. The non-operational
deposits include term deposits with premature withdrawal facility. Retail deposits including deposits from small
business customers and other contingent funding obligations contributed 22.98% (March 31, 2018: 21.40%) and
6.14% (March 31, 2018: 5.61%) of the total weighted cash outflows, respectively. The other contingent funding
obligations primarily include bank guarantees (BGs) and letters of credit (LCs) issued on behalf of the Bank’s clients.
In view of the margin rules for non-centrally cleared derivative transactions issued by the Basel Committee on
Banking Supervision and discussion paper issued by the RBI, certain derivative transactions would be subject to
margin reset and consequent collateral exchange would be as governed by Credit Support Annex (CSA). The margin
rules are applicable for both the domestic and overseas operations of the Bank. The Bank has entered into CSAs
which would require maintenance of collateral due to valuation changes on transactions under the CSA framework.
The Bank considers the increased liquidity requirement on account of valuation changes in the transactions settled
through Qualified Central Counterparties (QCCP) in India including the Clearing Corporation of India (CCIL) and
other exchange houses as well as for transactions covered under CSAs. The potential outflows on account of such
transactions have been considered based on the look-back approach prescribed in the RBI guidelines.
The average LCR of the Bank for the three months ended March 31, 2019 was 131.50% (March 31, 2018: 112.25%).
During the three months ended March 31, 2019, other than Indian Rupee, USD was the only significant foreign
currency which constituted more than 5.00% of the balance sheet size of the Bank. The average LCR of the Bank
for USD currency, computed based on daily LCR values, was 117.77% for the three months ended March 31, 2019
(March 31, 2018: 112.57% computed based on month-end LCR values).
5.
Information about business and geographical segments
Business Segments
Pursuant to the guidelines issued by RBI on AS 17 - Segment Reporting - Enhancement of Disclosures dated April 18,
2007, effective from year ended March 31, 2008, the following business segments have been reported.
•
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 (BCBS)
176
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
document ‘International Convergence of Capital Measurement and Capital Standards: A Revised Framework’.
This segment also includes income from credit cards, debit cards, third party product distribution and the
associated costs.
•
Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, which
are not included under Retail Banking.
•
Treasury includes the entire investment and derivative portfolio of the Bank.
• Other Banking includes 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.
The following tables set forth, for the periods indicated, the business segment results on this basis.
For the year ended March 31, 2019
` in million
Sr.
No. Particulars
Revenue
1.
Less: Inter-segment revenue
2.
Total revenue (1)–(2)
3.
4.
Segment results
5. Unallocated expenses
6. Operating profit (4)-(5)
7.
Income tax expenses (including
deferred tax credit)
8. Net profit/(loss) (6)-(7)
Segment assets
9.
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.
Retail
Banking
Wholesale
Banking
Treasury
591,723.3
341,685.1
539,240.6
82,231.2 (102,423.5)
51,651.3
Total
Other
Banking
Business
15,621.1 1,488,270.1
709,136.5
779,133.6
37,767.6
-
37,767.6
6,308.6
3,071,558.3 2,884,954.5 3,329,564.1
4,889,760.0 1,874,784.2 2,800,228.12
5,436.5
5,559.0
1,966.4
2,111.0
-
0.4
4,134.6
33,633.0
158,880.1 9,444,957.0
199,634.5
9,644,591.5
79,819.2 9,644,591.5
-
9,644,591.5
7,469.9
7,769.1
67.0
98.7
Includes tax paid in advance/tax deducted at source (net) and deferred tax assets (net).
2.
Includes share capital and reserves and surplus.
177
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Sr.
No.
Particulars
Revenue
1.
Less: Inter-segment revenue
2.
Total revenue (1)–(2)
3.
4.
Segment results
5. Unallocated expenses
6. Operating profit (4)-(5)
7.
Income tax expenses (including
deferred tax credit)
8. Net profit/(loss) (6)-(7)
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.
For the year ended March 31, 2018
` in million
Retail
Banking
Wholesale
Banking
Treasury
502,625.4
300,940.2
519,603.8
71,414.2
(82,813.0)
81,149.3
Total
Other
Banking
Business
12,787.2 1,335,956.6
612,101.4
723,855.2
74,345.5
-
74,345.5
4,595.0
2,586,385.4 2,657,712.2 3,303,399.8
4,135,023.7 1,672,682.4 2,946,198.72
7,393.7
6,665.6
1,302.8
1,081.8
24.3
17.7
6,571.3
67,774.2
107,924.8 8,655,422.2
136,469.4
8,791,891.6
37,986.8 8,791,891.6
-
8,791,891.6
8,745.6
7,807.4
24.8
42.3
Includes tax paid in advance/tax deducted at source (net) and deferred tax assets (net).
2.
Includes share capital and reserves and surplus.
Geographical segments
The Bank reports its operations under the following geographical segments.
• Domestic operations comprise branches in India.
•
Foreign operations comprise branches outside India and offshore banking units in India.
The following table sets forth, for the periods indicated, geographical segment results.
Revenues
Domestic operations
Foreign operations
Total
Year ended
March 31, 2019
736,185.1
42,948.5
779,133.6
` in million
Year ended
March 31, 2018
685,764.0
38,091.2
723,855.2
The following table sets forth, for the periods indicated, geographical segment assets.
Domestic operations
Foreign operations
Total
Segment assets do not include tax paid in advance/tax deducted at source (net) and deferred tax assets (net).
At
March 31, 2019
8,554,413.9
890,543.1
9,444,957.0
` in million
At
March 31, 2018
7,724,037.0
931,385.2
8,655,422.2
Assets
178
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following table sets forth, for the periods indicated, capital expenditure and depreciation thereon for the
geographical segments.
Particulars
Domestic operations
Foreign operations
Total
6. Maturity pattern
Capital expenditure incurred during
Year ended
March 31, 2018
8,584.1
161.5
8,745.6
Year ended
March 31, 2019
7,329.9
140.0
7,469.9
Depreciation provided during
Year ended
March 31, 2019
7,679.8
89.3
7,769.1
Year ended
March 31, 2018
7,739.8
67.6
7,807.4
` in million
The following table sets forth, the maturity pattern of assets and liabilities of the Bank at March 31, 2019.
Maturity buckets
Loans &
Advances1
Investment
securities1
Deposits1 Borrowings1
Day 1
2 to 7 days
8 to 14 days
15 to 30 days
31 days to 2 months
2 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.
Includes foreign currency balances.
112,052.1
327,197.8
18,074.7
443,751.3
135,338.6
42,903.4
162,499.0
62,223.9
44,478.6
140,542.6
89,610.7
153,054.5
210,081.1
51,194.8
215,897.3
171,189.6
48,940.1
229,534.3
335,622.8
100,862.9
476,884.4
722,505.4
212,942.9
673,180.7
237,442.3
653,019.0
1,544,031.3
332,798.6 1,795,681.7
1,036,848.4
1,431,578.2
478,774.2 1,782,252.1
5,866,465.8 2,077,326.8 6,529,196.7
2.
Excludes off-balance sheet assets and liabilities.
` in million
Total
Total
foreign
foreign
currency
currency
liabilities2
assets2
3,566.6
235,787.1
19,645.1
124,344.4
8,186.2
16,749.6
52,279.6
65,936.0
142,897.9
89,126.2
54,264.0
81,016.6
177,512.8
136,678.8
285,663.2
127,971.4
206,655.1
129,809.1
109,048.7
84,077.9
115,570.4
140,159.2
1,653,199.7 1,231,656.3 1,175,289.6
-
74,566.7
1,116.9
53,488.3
130,147.6
45,880.0
164,802.0
256,331.1
336,246.3
314,786.8
275,834.0
179
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following table sets forth, the maturity pattern of assets and liabilities of the Bank at March 31, 2018.
Maturity buckets
Loans &
Advances1
Investment
securities1
Deposits1 Borrowings1
Day 1
2 to 7 days
8 to 14 days
15 to 30 days
31 days to 2 months
2 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.
Includes foreign currency balances.
92,186.7
248,957.1
8,269.3
435,307.2
220,653.2
45,366.0
142,865.4
80,973.0
51,069.5
83,340.3
100,440.0
114,084.8
195,498.1
40,682.1
176,811.3
161,686.7
54,101.1
211,245.8
294,857.1
99,057.9
448,622.1
487,247.8
191,411.3
552,756.4
557,322.3
274,485.7
1,240,469.0
275,685.9 1,586,822.7
905,127.2
1,370,131.5
443,494.5 1,572,617.8
5,123,952.9 2,029,941.8 5,609,752.1
` in million
Total
Total
foreign
foreign
currency
currency
liabilities2
assets2
1,597.0
12,974.8
8,076.4
320,146.2
23,194.4
18,014.4
42,027.0
45,594.1
29,495.8
67,639.3
74,672.7
60,259.6
119,756.2
104,404.0
211,011.2
113,605.0
418,914.5
162,479.4
117,477.0
88,163.8
113,742.0
227,599.5
1,828,586.2 1,220,880.1 1,159,964.2
-
155,100.1
31,043.3
48,153.1
51,716.4
78,375.8
97,585.3
215,439.8
531,721.2
267,450.8
352,000.4
2.
Excludes off-balance sheet assets and liabilities.
The estimates and assumptions used by the Bank for classification of assets and liabilities under the different maturity
buckets is based on the returns submitted to RBI for the relevant periods.
7. Preference shares
During the year ended March 31, 2019, the Bank redeemed preference shares of ` 3,500.0 million after obtaining
requisite approval from RBI. The Bank has created capital redemption reserve of ` 3,500.0 million as required under
the Companies Act, 2013, out of surplus profits available for previous years.
8. 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 10% of the aggregate number of the issued
equity shares of the Bank on the date(s) of the grant of options in line with SEBI Regulations. Under the stock option
scheme, eligible employees are entitled to apply for equity shares. In April 2016, exercise period was modified from
10 years from the date of grant or five years from the date of vesting, whichever is later, to 10 years from the date
of vesting of options. In June 2017, exercise period was further modified to not exceed 10 years from the date of
vesting of options as may be determined by the Board Governance, Remuneration & Nomination Committee to be
applicable for future grants. In May 2018, exercise period was further modified to not exceed 5 years from the date
of vesting of options as may be determined by the Board Governance, Remuneration & Nomination Committee to
be applicable for future grants.
Options granted after March 2014, vest in a graded manner over a three-year period with 30%, 30% and 40% of
the grant vesting in each year, commencing from the end of 12 months from the date of grant other than certain
options granted in April 2014 which vested to the extent of 50% on April 30, 2017 and the balance vested on
April 30, 2018 and option granted in September 2015 which vested to the extent of 50% on April 30, 2018 and
balance 50% would vest on April 30, 2019. However, for the options granted in September 2015, if the participant’s
employment terminates due to retirement (including pursuant to any early/voluntary retirement scheme), all the
unvested options would lapse. Options granted in January 2018 would vest at the end of four years from the date of
grant. Certain options granted in May 2018, would vest to the extent of 50% on May 7, 2021 and balance 50% would
vest on May 7, 2022 and any unvested options would lapse upon termination of employment due to retirement
(including pursuant to early/voluntary retirement scheme).
180
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Options granted prior to March 2014 except mentioned below, vested 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 vested 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 vested in a graded manner over a five-year 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 exercise price of the Bank’s options, except mentioned below, is the last closing price on the stock exchange,
which recorded highest trading volume preceding the date of grant of options. In February 2011, the Bank granted
16,692,500 options to eligible employees and whole-time Directors of the Bank and certain of its subsidiaries at
an exercise price of ` 175.82. This exercise price was the average closing price on the stock exchange during the
six months ended October 28, 2010. Of these options granted, 50% vested on April 30, 2014 and the balance 50%
vested on April 30, 2015.
Based on intrinsic value of options, no compensation cost was recognised during the year ended March 31, 2019
(year ended March 31, 2018: Nil). If the Bank had used the fair value of options based on binomial tree model,
compensation cost in the year ended March 31, 2019 would have been higher by ` 3,179.0 million (year ended
March 31, 2018: ` 3,526.6 million) and proforma profit after tax would have been ` 30,454.0 million (year ended
March 31, 2018: ` 64,247.6 million). On a proforma basis, the Bank’s basic and diluted earnings per share would
have been ` 4.73 (year ended March 31, 2018: ` 10.01) and ` 4.68 (year ended March 31, 2018: ` 9.91) respectively
for the year ended March 31, 2019.
The following table sets forth, for the periods indicated, the key assumptions used to estimate the fair value of
options granted.
Particulars
Risk-free interest rate
Expected life
Expected volatility
Expected dividend yield
Year ended
Year ended
March 31, 2018
March 31, 2019
7.06% to 7.59%
7.32% to 8.31%
3.64 to 6.64 years
3.90 to 6.90 years
30.79% to 32.22% 31.71% to 32.92%
0.73% to 1.81%
0.43% to 0.80%
The weighted average fair value of options granted during the year ended March 31, 2019 was ` 107.22 (year ended
March 31, 2018: ` 86.43).
Risk free interest rates over the expected term of the option are based on the government securities yield in effect
at the time of the grant. The expected term of an option is estimated based on the vesting term as well as expected
exercise behavior of the employees who receive the option. Expected exercise behaviour is estimated based on
the historical stock option exercise pattern of the Bank. Expected volatility during the estimated expected term
of the option is based on historical volatility determined based on observed market prices of the Bank's publicly
traded equity shares. Expected dividends during the estimated expected term of the option are based on recent
dividend activity.
181
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following table sets forth, for the periods indicated, the summary of the status of the Bank’s stock option plan.
Particulars
Outstanding at the beginning of the year
Add: Granted during the year1
Less: Lapsed during the year, net of re-issuance
Less: Exercised during the year
Outstanding at the end of the year
Options exercisable
1.
` except number of options
Stock options outstanding
Year ended March 31, 2019 Year ended March 31, 2018
Number of
options
235,672,250
35,419,900
20,415,499
18,248,877
232,427,774
152,151,329
Weighted
average
exercise price
224.19
283.91
229.88
191.04
235.40
222.84
Number of
options
226,715,682
35,137,770
5,114,174
21,067,028
235,672,250
136,428,736
Weighted
average
exercise price
217.12
251.05
248.30
187.00
224.19
208.44
Includes stock options granted to WTDs which are pending regulatory approvals.
The following table sets forth, the summary of stock options outstanding at March 31, 2019.
Range of exercise price
(` per share)
Number of shares
arising out of options
Weighted average
exercise price (` per share)
60-99
100-199
200-299
300-399
1,602,975
33,771,457
196,076,442
976,900
79.15
166.66
248.04
329.56
The following table sets forth, the summary of stock options outstanding at March 31, 2018.
Range of exercise price
(` per share)
Number of shares
arising out of options
Weighted average
exercise price (` per share)
60-99
100-199
200-299
300-399
1,849,150
47,665,539
185,857,561
300,000
79.12
165.43
240.57
309.50
Weighted average
remaining contractual
life (Number of years)
3.84
4.23
8.11
8.64
Weighted average
remaining contractual
life (Number of years)
4.91
4.85
9.43
13.79
The options were exercised regularly throughout the period and weighted average share price as per
National Stock Exchange price volume data during the year ended March 31, 2019 was ` 326.37 (year ended
March 31, 2018: ` 296.94).
9. Subordinated debt
The following table sets forth, the details of subordinated debt bonds qualifying for Additional Tier-1 capital raised
during the year ended March 31, 2019.
Particulars
Subordinate Additional Tier-1
1.
Date of Issue Coupon Rate (%)
9.90% (annually)
December 28, 2018
Tenure
Perpetual1
Amount
11,400.0
Call option exercisable on December 28, 2023 and on every interest payment date thereafter (exercisable with RBI approval).
182
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following table sets forth, the details of subordinated debt bonds qualifying for Additional Tier-1 capital raised
during the year ended March 31, 2018.
Particulars
Subordinate Additional Tier-1
Subordinate Additional Tier-1
Subordinate Additional Tier-1
1.
Date of Issue
September 20, 2017
October 4, 2017
March 20, 2018
Coupon Rate (%)
8.55% (annually)
8.55% (annually)
9.15% (annually)
Tenure
Perpetual1
Perpetual2
Perpetual3
` in million
Amount
10,800.0
4,750.0
40,000.0
Call option exercisable on September 20, 2022 and on every interest payment date thereafter (exercisable with RBI approval).
2.
3.
Call option exercisable on October 4, 2022 and on every interest payment date thereafter (exercisable with RBI approval).
Call option exercisable on June 20, 2023 and on every interest payment date thereafter (exercisable with RBI approval).
During the year ended March 31, 2019, the Bank has not raised subordinated debt qualifying for Tier-2 capital
(March 31, 2018: Nil).
10. Repurchase transactions
The following tables set forth for the periods indicated, the details of securities sold and purchased under repo and
reverse repo transactions respectively including transactions under Liquidity Adjustment Facility (LAF) and Marginal
Standing Facility (MSF).
Sr.
No. Particulars
Minimum
outstanding
balance
during the
Maximum
outstanding
balance
during the
Daily average
outstanding
balance
during the
Year ended March 31, 2019
` in million
Outstanding
balance at
March 31,
2019
Government Securities
Corporate Debt Securities
Securities sold under Repo, LAF and MSF
i)
ii)
Securities purchased under Reverse Repo and LAF
i)
ii)
1.
Government Securities
Corporate Debt Securities
Amounts reported are based on face value of securities under Repo and Reverse repo.
-
-
-
-
183,972.2
1,000.0
293,919.6
2,000.0
2.
3.
Amounts reported are based on lending/borrowing amount under LAF and MSF.
Includes tri-party repo transactions.
37,694.6
2.7
59,525.3
49.3
61,716.3
-
99,000.0
-
Minimum
outstanding
balance
during the
Maximum
outstanding
balance
during the
Daily average
outstanding
balance
during the
Year ended March 31, 2018
` in million
Outstanding
balance at
March 31,
2018
-
-
129,841.0
1,000.0
15,706.0
4.4
115,920.0
-
Sr.
No. Particulars
Government Securities
Corporate Debt Securities
Securities sold under Repo, LAF and MSF
i)
ii)
Securities purchased under Reverse Repo and LAF
i)
ii)
1.
Government Securities
Corporate Debt Securities
Amounts reported are based on face value of securities under Repo and Reverse repo.
-
-
323,000.0
2,000.0
2.
Amounts reported are based on lending/borrowing amount under LAF and MSF.
70,930.9
7.7
170,390.0
-
183
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
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
Sr.
No.
1. Value of Investments
i) Gross value of investments
a) In India
b) Outside India
ii) Provision for depreciation
c) In India
d) Outside India
iii) Net value of investments
e) In India
f) Outside India
2. Movement of provisions held towards depreciation on investments
i) Opening balance
ii) Add: Provisions made during the year
iii) Less: Write-off/write-back of excess provisions during the year
iv) Closing balance
At
March 31, 2019
` in million
At
March 31, 2018
2,062,886.2
64,377.2
2,003,754.4
73,275.2
(49,109.9)
(826.7)
(41,654.9)
(5,432.9)
2,013,776.3
63,550.5
1,962,099.5
67,842.3
47,087.8
9,757.5
(6,908.7)
49,936.6
35,429.8
28,923.0
(17,265.0)
47,087.8
During the year ended March 31, 2019, the Bank sold 2.00% of its shareholding in ICICI Prudential Life Insurance
Limited and made a net gain of ` 11,095.9 million on this sale.
During the year ended March 31, 2018, the Bank sold approximately 7.00% of its shareholding in ICICI Lombard
General Insurance Company Limited in the IPO and made a net gain of ` 20,121.5 million on this sale. Further, the
Bank sold approximately 20.78% of its shareholding in ICICI Securities Limited in the IPO and made a net gain of
` 33,197.7 million on this sale.
The following table sets forth, for the periods indicated, break-up of other investments in Schedule 8.
Investments
I.
In India
Pass through certificates
Commercial paper
Certificate of deposits
Security receipts
Venture funds
Others
Total
II. Outside India
Certificate of deposits
Shares
Bonds
Venture funds
Total
Grand total
184
At
March 31, 2019
` in million
At
March 31, 2018
136,172.1
105,614.9
30,301.1
32,856.3
2,923.9
4,307.1
312,175.4
4,493.9
310.1
-
1,892.8
6,696.8
318,872.2
120,469.0
128,647.6
43,897.9
34,383.0
3,436.8
253.7
331,088.0
4,234.9
309.5
2,023.0
970.8
7,538.2
338,626.2
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
12. Investment in securities, other than government and other approved securities (Non-SLR investments)
i)
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, 2019.
Sr.
No.
Issuer
PSUs
FIs
Banks
Private corporates
Subsidiaries/ Joint ventures
1.
2.
3.
4.
5.
6. Others3,4
7.
Amount
56,242.6
103,246.7
39,093.3
147,387.6
98,028.5
183,868.7
Extent of
private
placement
(a)
48,032.5
84,848.2
29,358.1
145,949.3
-
180,059.8
Extent of ‘below
investment
grade’ securities
(b)
Extent of
‘unrated’
securities2,3
(c)
` in million
Extent of
‘unlisted’
securities2,3
(d)
-
797.0
-
7,209.4
-
37,367.8
-
187.2
-
2,494.4
-
20.0
N.A.
2,701.6
-
-
-
8,924.7
-
20.0
N.A.
8,944.7
Provision held
towards depreciation
Total
Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.
(49,798.0)
578,069.4
N.A.
488,247.9
N.A.
45,374.2
1.
2.
3.
4.
7.
1.
2.
3.
4.
Excludes equity shares, units of equity-oriented mutual fund, units of venture capital fund, pass through certificates, security
receipts, commercial papers, certificates of deposit, non-convertible debentures (NCDs) with original or initial maturity
up to one year issued by corporate (including NBFC), unlisted convertible debentures and securities acquired by way of
conversion of debt.
Excludes investments in non-Indian government securities by overseas branches amounting to ` 20,026.9 million.
Excludes investments in non-SLR government of India securities amounting to ` 135.0 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, 2018.
Sr.
No.
Issuer
PSUs
FIs
Banks
Private corporates
Subsidiaries/ Joint ventures
1.
2.
3.
4.
5.
6. Others3,4
Amount
29,705.0
139,996.7
46,543.0
181,651.3
98,315.7
165,317.7
Extent of
private
placement
(a)
27,588.3
86,664.0
17,935.7
155,962.0
-
165,297.2
-
-
-
6,394.7
-
37,886.8
Extent of ‘below
investment
grade’ securities
(b)
Extent of
‘unrated’
securities2,3
(c)
Provision held
towards depreciation
Total
Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.
(46,917.7)
614,611.7
N.A.
453,447.2
N.A.
44,281.5
` in million
Extent of
‘unlisted’
securities2,3
(d)
1,389.5
-
-
17,811.4
-
-
N.A.
19,200.9
-
5.4
-
2,983.3
-
-
N.A.
2,988.7
Excludes equity shares, units of equity-oriented mutual fund, units of venture capital fund, pass through certificates, security
receipts, commercial papers, certificates of deposit, non-convertible debentures (NCDs) with original or initial maturity
up to one year issued by corporate (including NBFC), unlisted convertible debentures and securities acquired by way of
conversion of debt.
Excludes investments in non-Indian government securities by overseas branches amounting to ` 23,477.2 million.
Excludes investments in non-SLR government of India securities amounting to ` 7,578.5 million.
185
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
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
March 31, 2019
38,440.3
13,827.3
(7,980.4)
44,287.2
37,597.3
` in million
Year ended
March 31, 2018
14,258.8
33,485.8
(9,304.3)
38,440.3
28,712.6
13. Sales and transfers of securities to/from Held to Maturity (HTM) category
During the three months ended June 30, 2018, with the approval of Board of Directors, the Bank transferred securities
amounting to ` 157,519.9 million from held-to-maturity (HTM) category to available-for-sale (AFS) category, being
transfer of securities at the beginning of the accounting year as permitted by RBI. During the year ended March 31,
2019, the Bank undertook one transaction for sale of securities with a net book value of ` 2,283.2 million, which
was 0.20% of the HTM portfolio at April 1, 2018. During the year ended March 31, 2018, the Bank undertook 52
transactions for sale of securities with a net book value of ` 44,039.5 million, which was 4.69% of the HTM portfolio
at April 1, 2017. The above sale is excluding sale to RBI under pre-announced open market operation auctions and
repurchase of government securities by Government of India, as permitted by RBI guidelines. The market value of
investments held in the HTM category was ` 1,722,629.5 million at March 31, 2019 (March 31, 2018: ` 1,549,786.6
million). This includes investments in unlisted subsidiaries/joint ventures classified in the HTM category at cost.
14. CBLO transactions
During the year ended March 31, 2019, the Clearing Corporation of India Limited (CCIL) has discontinued
transactions under CBLO. At March 31, 2018, the Bank had outstanding borrowings amounting to ` 48,642.5
million and the amortised book value of securities given as collateral by the Bank to CCIL for availing the CBLO
facility was ` 157,319.7 million.
15. Derivatives
The Bank is a major participant in the financial derivatives market. The Bank deals in derivatives for balance sheet
management, proprietary trading 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 Control and Service Group
(TCSG) 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, Asset Liability Management (ALM) policy and operational risk
management policy. The RCB comprises independent directors and the Managing Director & 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 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
186
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
to the principles of hedge accounting based on guidelines issued by RBI. 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.
Over the counter (OTC) 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.
The following tables set forth, for the periods indicated, the details of derivative positions.
Sr.
No.
Particulars
1. Derivatives (Notional principal amount)
a) For hedging
b) For trading
2. Marked to market positions3
a) Asset (+)
b) Liability (-)
3. Credit exposure4
At March 31, 2019
Currency
derivative1
Interest rate
derivative2
At March 31, 2018
Currency
derivative1
Interest rate
derivative2
` in million
-
1,169,273.7
405,113.5
11,290,774.4
524.1
994,889.8
385,450.3
5,629,053.4
21,822.9
(16,486.8)
72,219.9
28,898.7
(30,163.3)
124,854.3
22,385.8
(13,461.6)
72,907.7
16,311.0
(17,429.8)
74,451.6
4.
5.
1.
2.
3.
4.
5.
6.
-
423.5
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 period
a) On hedging6
Maximum
Minimum
b) On trading
Maximum
Minimum
Exchange traded and OTC options, cross currency interest rate swaps and currency futures are included in currency derivatives.
2,210.6
10.7
10,011.7
62.7
12,807.0
9,779.7
1.3
1,425.2
1,482.1
423.1
1,425.2
735.3
31.6
1.1
1.3
-
14,133.6
10,992.5
1,732.1
2.0
12,597.9
370.1
OTC Interest rate options, 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.
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 off-setting impact with the underlying on-
balance sheet items.
The following tables set forth, for the periods indicated, the details of forex contracts.
Particulars
Sr.
No.
1.
2. Marked to market positions
Forex contracts (Notional principal amount)
a) Asset (+)
b) Liability (-)
3. Credit exposure1
4.
Likely impact of one percentage change
in interest rate (100*PV01)2
Computed based on current exposure method.
Amounts given are absolute values on a net basis.
1.
2.
At March 31, 2019
Trading
4,144,178.3
Non-trading
556,822.2
At March 31, 2018
Trading
4,049,874.7
Non-trading
276,814.5
` in million
19,107.0
(17,799.0)
132,225.8
2,261.8
(6,000.7)
16,396.5
18,880.0
(17,457.4)
124,398.4
921.0
(2,851.5)
6,523.2
53.6
15.2
63.5
2.4
187
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The net overnight open position (NOOP) at March 31, 2019 (as per last NOOP value reported to RBI for the year
ended March 31, 2019) was ` 2,688.1 million (March 31, 2018: ` 992.6 million).
The Bank has no exposure in credit derivative instruments (funded and non-funded) including credit default swaps
(CDS) and principal protected structures at March 31, 2019 (March 31, 2018: Nil).
The Bank offers deposits to customers of its overseas 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, 2019, the net open
notional position on this portfolio was Nil (March 31, 2018: Nil) with no mark-to-market gain/loss (March 31, 2018: Nil).
The profit and loss impact on the aforementioned structured deposits portfolio on account of mark-to-market and
realised profit and loss during the year ended March 31, 2019 was Nil (year ended March 31, 2018: Nil). The non-Indian
Rupee denominated 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 Fixed Income
Money Market and Derivative Association (FIMMDA). The Indian Rupee denominated credit derivatives are marked
to market by the Bank based on CDS curve published by FIMMDA.
16. Exchange traded interest rate derivatives and currency derivatives
Exchange traded interest rate derivatives
The following table sets forth, for the periods indicated, the details of exchange traded interest rate derivatives.
Particulars
Sr.
No.
1. Notional principal amount of exchange traded interest rate derivatives
At
March 31, 2019
` in million
At
March 31, 2018
undertaken during the year
- 10 year Government Security Notional Bond
2. Notional principal amount of exchange traded interest rate
derivatives outstanding
- 10 year Government Security Notional Bond
3. Notional principal amount of exchange traded interest rate derivatives
outstanding and not ‘highly effective’
4. Mark-to-market value of exchange traded interest rate derivatives
outstanding and not ‘highly effective’
23,272.8
52,811.0
6,250.0
1,000.0
N.A.
N.A.
N.A.
N.A.
Exchange traded currency derivatives
The following table sets forth, for the periods indicated, the details of exchange traded currency derivatives.
Particulars
Sr.
No.
1. Notional principal amount of exchange traded currency derivatives
undertaken during the year
2. Notional principal amount of exchange traded currency derivatives
options outstanding
3. Notional principal amount of exchange traded currency derivatives
outstanding and not ‘highly effective’
4. Mark-to-market value of exchange traded currency derivatives
outstanding and not ‘highly effective’
At
March 31, 2019
` in million
At
March 31, 2018
1,965,113.3
1,395,871.3
31,719.2
34,651.8
N.A.
N.A.
N.A.
N.A.
17. Forward rate agreement (FRA)/Interest rate swaps (IRS)/Cross currency swaps (CCS)
The Bank enters into FRA, IRS and CCS 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 and
currency risk within the prevalent regulatory guidelines.
188
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
A FRA is a financial contract between two parties to exchange interest payments for ‘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 London Inter-Bank Offered Rate (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 Mumbai Inter-Bank Offered Rate (MIBOR), Indian Government Securities Benchmark Rate (INBMK),
Mumbai Inter-Bank Forward Offer Rate (MIFOR) and LIBOR of various currencies.
A CCS is a financial contract between two parties exchanging interest payments and principal, wherein interest
payments and principal in one currency would be exchanged for an equally valued interest payments and principal
in another currency.
These contracts are subject to the risks of changes in market interest rates and currency rates as well as the settlement
risk with the counterparties.
The following table sets forth, for the periods indicated, the details of the FRA/IRS.
At
March 31, 2019
11,628,471.9
` in million
At
March 31, 2018
5,956,569.2
Particulars
Sr.
No.
1. Notional principal of FRA/IRS
2.
3.
4.
5.
1.
2.
3.
3.
4.
5.
1.
2.
3.
4.
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
Fair value of FRA/IRS3
For trading portfolio both mark-to-market and accrued interest have been considered and for hedging portfolio only accrued interest
has been considered.
31,039.6
-
2,496.6
(1,623.4)
18,466.2
-
583.2
(6,363.0)
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.
The following table sets forth, for the periods indicated, the details of the CCS.
Particulars
Sr.
No.
1. Notional principal of CCS1
2.
Losses which would be incurred if all counter parties failed to fulfil
their obligations under the agreement2
Collateral required by the Bank upon entering into CCS
Concentration of credit risk3
Fair value of CCS4
CCS includes cross currency interest rate swaps and currency swaps.
At
March 31, 2019
423,344.5
` in million
At
March 31, 2018
416,989.4
18,520.0
-
7,911.7
8,116.3
18,255.0
-
5,180.3
8,765.1
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.
189
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following tables set forth, for the periods indicated, the nature and terms of FRA and IRS.
Hedging
Benchmark
Type
AUD LIBOR Fixed receivable v/s floating payable
Fixed receivable v/s floating payable
CHF LIBOR
Fixed receivable v/s floating payable
JPY LIBOR
Fixed receivable v/s floating payable
SGD SOR
USD LIBOR Fixed receivable v/s floating payable
Total
Trading
Benchmark
Type
AUD LIBOR Floating receivable v/s fixed payable
AUD LIBOR Fixed receivable v/s floating payable
Floating receivable v/s fixed payable
CAD CDOR
Fixed receivable v/s floating payable
EURIBOR
Floating receivable v/s fixed payable
EURIBOR
Floating receivable v/s floating payable
EURIBOR
Fixed receivable v/s floating payable
GBP LIBOR
Floating receivable v/s fixed payable
GBP LIBOR
Floating receivable v/s fixed payable
INBMK
Fixed receivable v/s floating payable
INBMK
Fixed receivable v/s floating payable
JPY LIBOR
Floating receivable v/s fixed payable
JPY LIBOR
Floating receivable v/s floating payable
JPY LIBOR
Floating receivable v/s fixed payable
MIBOR
Fixed receivable v/s floating payable
MIBOR
Floating receivable v/s fixed payable
MIFOR
MIFOR
Fixed receivable v/s floating payable
USD LIBOR Fixed receivable v/s floating payable
USD LIBOR Floating receivable v/s fixed payable
USD LIBOR Floating receivable v/s floating payable
Floating receivable v/s
USD LIBOR
floating payable
v/s EURIBOR
Other
Fixed receivable v/s fixed payable
Total
At
March 31, 2019
At
March 31, 2018
` in million
Notional
principal
7,353.0
6,934.9
9,362.9
11,483.4
369,979.3
405,113.5
No. of deals
3
2
2
5
63
75
Notional
principal
7,506.8
6,834.6
9,219.7
13,203.0
348,686.2
385,450.3
No. of deals
3
2
2
6
63
76
At
March 31, 2019
At
March 31, 2018
` in million
Notional
principal
468.6
441.2
244.3
16,319.6
17,794.3
388.3
12,194.8
13,469.7
21,431.0
10,000.0
5,628.2
5,043.3
624.2
4,082,550.5
4,107,599.7
459,260.0
553,185.0
855,667.1
951,302.9
105,356.0
No. of deals
17
1
5
53
32
1
22
30
29
15
13
7
1
4,522
5,096
829
984
849
827
66
Notional
principal
-
-
-
9,277.1
11,122.3
401.6
5,551.3
7,948.5
14,250.0
30,195.3
2,000.6
1,093.0
613.6
1,829,058.7
1,540,590.7
332,795.0
293,635.0
694,365.7
733,965.6
56,026.6
-
4,389.7
11,223,358.4
-
69
13,468
647.4
7,580.9
5,571,118.9
No. of deals
-
-
-
32
20
1
12
14
26
48
10
3
1
2,507
2,362
657
620
923
771
61
2
91
8,161
190
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following tables set forth, for the periods indicated, the nature and terms of CCS.
Hedging
Benchmark1
Type
USD LIBOR
Total
1.
Fixed receivable v/s floating payable
Benchmark indicates floating leg of the fixed v/s floating CCS.
Trading
Benchmark1
Type
AUD BBSW
V/s USD LIBOR
CHF LIBOR
V/s USD LIBOR
EURIBOR
EURIBOR
V/s GBP LIBOR
EURIBOR
V/s USD LIBOR
EURIBOR
V/s USD LIBOR
GBP LIBOR
V/s USD LIBOR
GBP LIBOR
V/s USD LIBOR
HIBOR
v/s USD LIBOR
JPY LIBOR
JPY LIBOR
JPY LIBOR
V/s USD LIBOR
JPY LIBOR
V/s USD LIBOR
SGD SOR
V/s USD LIBOR
SGD SOR
V/s USD LIBOR
USD LIBOR
USD LIBOR
Others
Total
Floating receivable v/s floating payable
Floating receivable v/s floating payable
Fixed receivable v/s floating payable
Floating payable v/s floating receivable
Floating receivable v/s floating payable
Floating payable v/s floating receivable
Floating receivable v/s floating payable
Floating payable v/s floating receivable
Floating receivable v/s floating payable
Floating receivable v/s fixed payable
Fixed receivable v/s floating payable
Floating receivable v/s floating payable
Floating payable v/s floating receivable
Floating receivable v/s floating payable
Floating payable v/s floating receivable
Fixed receivable v/s floating payable
Floating receivable v/s fixed payable
Fixed receivable v/s fixed payable
1.
Benchmark indicates floating leg of the fixed v/s floating CCS.
` in million
At
March 31, 2019
At
March 31, 2018
Notional
principal
-
-
No. of deals
-
-
Notional
principal
524.1
524.1
No. of deals
1
1
` in million
At
March 31, 2018
At
March 31, 2019
Notional
principal
No. of deals
7,359.3
6,946.8
110.5
2,703.5
1
2
2
2
Notional
principal
15,534.4
7,081.3
954.2
2,742.7
8,223.5
19
6,601.8
4,970.8
3,556.8
7,088.9
13,673.1
310.7
851.5
9
6
9
2
1
7
4,677.9
275.1
4,283.8
12,889.4
1,829.2
3,144.8
12,785.5
12
13,741.1
2,765.3
11,982.2
345.8
90,338.7
95,754.7
153,577.1
423,344.7
4
3
2
197
110
216
604
4,083.6
13,156.0
325.9
92,755.5
111,817.1
120,571.5
416,465.3
No. of deals
3
3
15
2
9
10
2
4
2
3
15
13
4
9
2
269
118
235
718
191
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
18. Non-performing assets1
The following table sets forth, for the periods indicated, the details of movement of gross non-performing assets
(NPAs), net NPAs and provisions.
Particulars
Sr.
No.
1. Net NPAs (funded) to net advances (%)
2. Movement of NPAs (Gross)
a) Opening balance2
b) Additions: Fresh NPAs during the year
Sub-total (1)
c) Reductions during the year
• Upgradations
•
Recoveries (excluding recoveries made from
upgraded accounts)
• Technical/prudential write-offs
• Write-offs other than technical/prudential write-offs
Sub-total (2)
d) Closing balance2 (1)-(2)
3. Movement of net NPAs
a) Opening balance2
b) Additions during the year
c) Reductions during the year
d) Closing balance2
4. Movement of provision for NPAs (excluding provision on standard assets)
a) Opening balance2
b) Addition during the year
Sub-total (1)
c) Write-off/(write-back) of excess provisions
• Write-back of excess provision on account of upgradations
• Write-back of excess provision on account of reduction in NPAs
• Provision utilised for write-offs
Sub-total (2)
d) Closing balance2 (1)-(2)
Represents loans and advances.
Net of write-off.
1.
2.
Year ended
March 31, 2019
2.29%
` in million
Year ended
March 31, 2018
5.43%
532,401.8
105,959.6
638,361.4
(11,903.6)
(54,126.1)
(102,638.4)
(12,932.9)
(181,601.0)
456,760.4
278,235.6
53,969.5
(197,707.9)
134,497.2
254,166.2
197,391.4
451,557.6
(2,360.6)
(12,392.7)
(114,541.1)
(129,294.4)
322,263.2
421,593.9
286,349.5
707,943.4
(38,668.2)
(53,186.8)
(67,720.7)
(15,965.9)
(175,541.6)
532,401.8
252,168.1
147,672.6
(121,605.1)
278,235.6
169,425.8
198,649.5
368,075.3
(14,289.9)
(15,956.7)
(83,662.5)
(113,909.1)
254,166.2
The following table sets forth, for the periods indicated, the details of movement in technical/prudential write-off.
Particulars
Opening balance
Add: Technical/prudential write-offs during the year
Sub-total (1)
Less: Recoveries made from previously technical/prudential written-off
accounts during the year
Less: Sacrifice made from previously technical/prudential written-off
accounts during the year
Sub-total (2)
Closing balance (1)-(2)
Year ended
March 31, 2019
172,128.4
102,638.4
274,766.8
` in million
Year ended
March 31, 2018
121,658.1
67,720.7
189,378.8
(13,871.5)
(2,040.2)
(22,235.7)
(36,107.2)
238,659.6
(15,210.2)
(17,250.4)
172,128.4
192
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
On February 12, 2018, RBI issued a revised framework for resolution of stressed assets, which superceded the
existing guidelines on SDR, change in ownership outside SDR (except projects under implementation) and S4A with
immediate effect. Under the revised framework, the stand-still benefits for accounts where any of these schemes
had been invoked but not yet implemented were revoked and accordingly these accounts were classified as per the
extant RBI norms on income recognition and asset classification in the three months ended March 31, 2018.
Further, in accordance with RBI guidelines, the loans and advances held at the overseas branches that are identified
as impaired as per host country regulations for reasons other than record of recovery, but which are standard as per
the extant RBI guidelines, are classified as NPAs to the extent of amount outstanding in the host country. During the
year ended March 31, 2019, the Bank classified certain loans as NPAs at overseas branches amounting to ` 3,244.1
million (year ended March 31, 2018: Nil) as per the requirement of these guidelines and made a provision of ` 718.2
million (year ended March 31, 2018: Nil) on these loans.
Disclosure on exposure to Infrastructure Leasing & Financial Services Limited (ILFS) and its group entities
At March 31, 2019, the Bank has classified its fund-based outstanding to Infrastructure Leasing & Financial Services
Limited (ILFS) entities amounting to ` 2,759.4 million as non-performing and holds a provision of ` 1,459.7 million
as per extant RBI guidelines. The Bank also has non-fund based outstanding of ` 5,449.2 million to ILFS entities and
holds a provision of ` 4,682.6 million towards this outstanding at March 31, 2019.
Divergence in asset classification and provisioning for NPAs
In terms of the RBI circular no. //DBR.BP.BC.No.32/21.04.018/2018-19 dated April 1, 2019, banks are required to
disclose the divergences in asset classification and provisioning consequent to RBI’s annual supervisory process
in their notes to accounts to the financial statements, wherever either (a) the additional provisioning requirements
assessed by RBI exceed 10% of the reported net profits before provisions and contingencies (15% of the published
net profits after tax for the year ended March 31, 2017) or (b) the additional gross NPAs identified by RBI exceed
15% of the published incremental gross NPAs for the reference period, or both. Based on the condition mentioned
in RBI circular, no disclosure on divergence in asset classification and provisioning for NPAs is required with respect
to RBI’s supervisory process for the year ended March 31, 2018 and for the year ended March 31, 2017.
Accounts covered under Insolvency and Bankruptcy Code, 2016
During the year ended March 31, 2018, RBI had advised banks to initiate insolvency resolution process under the
provisions of Insolvency and Bankruptcy Code, 2016 (IBC) for certain specific accounts. Banks were required to
make provision at 40% on the secured portion and 100% on unsecured portion of the loan, or provision as per
extant RBI guideline on asset classification norms, whichever was higher at March 31, 2018. Banks were required
to further increase the provision on secured portion of the loan to 50.0% at June 30, 2018. At March 31, 2019, the
Bank holds a provision of ` 76,210.3 million in respect of outstanding loans amounting to ` 103,065.0 million to these
borrowers, which amounts to provision coverage of 73.94%.
19. Floating provision
During the year ended March 31, 2019, the Bank did not make any floating provision (March 31, 2018: Nil).
The following table sets forth, for the periods indicated, the movement in floating provision held by the Bank.
Particulars
Opening balance1
Add: Provision made during the year
Less: Provision utilised during the year
Closing balance1
1.
Represents amount taken over from erstwhile Bank of Rajasthan upon amalgamation.
At
March 31, 2019
1.9
-
-
1.9
` in million
At
March 31, 2018
1.9
-
-
1.9
20. General provision on standard assets
The general provision on standard assets held by the Bank at March 31, 2019 was ` 28,737.6 million (March 31, 2018:
` 25,906.6 million). The general provision on standard assets amounting to ` 2,553.7 million was made during the
year ended March 31, 2019 (year ended March 31, 2018: ` 2,771.1 million) as per applicable RBI guidelines.
193
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
RBI, through its circular dated January 15, 2014 had advised banks to create incremental provision on standard
loans and advances to entities with unhedged foreign currency exposure (UFCE). The Bank assesses the UFCEs of
the borrowers through its credit appraisal and internal ratings process. The Bank also undertakes reviews of such
exposures through thematic reviews evaluating the impact of exchange rate fluctuations on the Bank’s portfolio on
an yearly basis.
The Bank holds provision amounting to ` 2,250.0 million (March 31, 2018: ` 1,900.0 million) on advances to entities
with UFCE at March 31, 2019. The Bank has made provision amounting to ` 350.0 million during the year ended
March 31, 2019 (year ended March 31, 2018: ` 50.0 million). The Bank held incremental capital of ` 8,048.3 million
at March 31, 2019 on advances to borrowers with UFCE (March 31, 2018: ` 5,487.5 million).
The Bank makes additional general provision on stressed sectors of the economy, as per RBI guidelines and as per
the Board approved policy. The Bank has reversed general provision amounting to ` 483.4 million during the year
ended March 31, 2019 (year ended March 31, 2018: provision made amounting to ` 1,911.5 million). At March 31,
2019, the Bank holds provision of ` 1,428.1 million (March 31, 2018: ` 1,911.5 million).
RBI, through its circular dated August 25, 2016, required banks to make additional provision from the year ended
March 31, 2019 on incremental exposure of the banking system in excess of normally permitted lending limit (NPLL) on
borrowers classified as specified borrower. During the year ended March 31, 2019, the Bank made provision amounting
to ` 124.2 million on these specified borrowers. At March 31, 2019, the Bank holds provision of ` 124.2 million.
21. Provision Coverage Ratio
The provision coverage ratio of the Bank at March 31, 2019 computed as per the extant RBI guidelines was 70.6%
(March 31, 2018: 47.7%).
22. Priority Sector Lending Certificates (PSLCs)
During the year ended March 31, 2019, the Bank purchased PSLCs under agriculture category amounting to
` 249,175.0 million (year ended March 31, 2018: ` 35,000.0 million). During the year ended March 31, 2019, the Bank
did not purchase any PSLCs under general category (year ended March 31, 2018: ` 17,300.0 million). During the year
ended March 31, 2019, the Bank sold PSLC under general category amounting to ` 197,500.0 million (year ended
March 31, 2018: ` 1,000.0 million) and under micro enterprise category amounting to ` 47,252.5 million (year ended
March 31, 2018: Nil).
23. Securitisation
A.
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
till May 7, 2012.
Particulars
` in million, except number of loans securitised
Year ended
Year ended
March 31, 2018
March 31, 2019
-
-
-
-
-
-
28.1
24.2
Includes gain/(loss) on deal closures, gain amortised during the year and expenses relating to utilisation of credit enhancement.
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
1.
Particulars
Outstanding credit enhancement (funded)
Outstanding liquidity facility
Net outstanding servicing asset/(liability)
Outstanding subordinate contributions
At
March 31, 2019
3,468.8
0.7
(12.1)
1,462.2
` in million
At
March 31, 2018
3,469.7
0.1
(15.5)
1,469.7
The outstanding credit enhancement in the form of guarantees amounted to Nil at March 31, 2019 (March 31,
2018: Nil) and outstanding liquidity facility in the form of guarantees amounted to ` 265.1 million at March 31,
2019 (March 31, 2018: ` 265.8 million).
194
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The outstanding credit enhancement in the form of guarantees for third party originated securitisation
transactions amounted to ` 4,858.6 million at March 31, 2019 (March 31, 2018: ` 4,189.5 million) and
outstanding liquidity facility for third party originated securitisation transactions amounted to Nil at March 31,
2019 (March 31, 2018: Nil).
The following table sets forth, for the periods indicated, the details of provision for securitisation and direct
assignment transactions.
Particulars
Opening balance
Additions during the year
Deductions during the year
Closing balance
Year ended
March 31, 2019
823.3
12.0
(3.4)
831.9
` in million
Year ended
March 31, 2018
802.7
25.0
(4.4)
823.3
B.
The information on securitisation and direct assignment activity of the Bank as an originator as per RBI guidelines
‘Revisions to the Guidelines on Securitisation Transactions’ dated May 7, 2012 is given below.
a.
b.
The Bank, as an originator, has not sold any loan through securitisation during the year ended March 31,
2019 (March 31, 2018: Nil).
The following table sets forth, for the periods indicated, the information on the loans sold through
direct assignment.
Particulars
Sr.
No.
1. Number of SPVs sponsored by the bank for securitisation transactions
Total amount of assets sold through direct assignment during the year
2.
Total amount of exposures retained by the Bank to comply with
Minimum Retention Requirement (MRR)
a) Off-balance sheet exposures
3.
• First loss
• Others
b) On-balance sheet exposures
• First loss
• Others
4. Amount of exposure to securitisation transactions other than MRR
a) Off-balance sheet exposures
i) Exposure to own securitisation
• First loss
• Others
ii) Exposure to third party securitisation
• First loss
• Others
b) On-balance sheet exposures
i) Exposure to own securitisation
• First loss
• Others
ii) Exposure to third party securitisation
• First loss
• Others
At
March 31, 2019
-
-
` in million
At
March 31, 2018
-
-
-
-
-
19.8
-
-
-
-
-
-
-
-
-
-
-
19.8
-
-
-
-
-
-
-
-
The overseas branches of the Bank, as originators, sold seven loans through direct assignment amounting to ` 4,684.1
million during the year ended March 31, 2019 (year ended March 31, 2018: 15 loans amounting to ` 19,132.7 million).
195
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
24. 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 circular no. DBR.No.BP.BC.2/21.04.048/2015-16 dated July 1, 2015. For the purpose of the valuation of the
underlying security receipts issued by the underlying trusts managed by ARCs, the SRs are valued at their respective
net asset values as advised by the ARCs.
The following table sets forth, for the periods indicated, the details of the assets transferred.
Particulars
Number of accounts
Aggregate value (net of provisions) of accounts sold to SC/RC
Aggregate consideration3
Additional consideration realised in respect of accounts transferred
in earlier years
Aggregate gain/(loss) over net book value1,2,3
1.
` in million, except number of accounts
Year ended
March 31, 2018
12
2,718.5
3,039.3
Year ended
March 31, 2019
15
2,764.1
3,851.5
-
1,087.4
-
320.8
The Bank made a loss of ` 1,024.0 million on sale of financial assets to ARCs (year ended March 31, 2018: Nil).
2.
3.
The Bank made a gain of ` 2,111.4 million on sale of financial assets to ARCs (year ended March 31, 2018: gain of ` 320.8 million),
out of which Nil (year ended March 31, 2018: ` 200.2 million) is set aside towards the security receipts received on such sale.
Excludes security receipts received amounting to Nil towards interest overdue not recognised as income (year ended March 31,
2018: ` 34.5 million).
The following tables set forth, for the periods indicated, the details of investments in security receipts (SRs).
Particulars
Net book value of investments in SRs which are -
- Backed by NPAs sold by the Bank as underlying1
-
Backed by NPAs sold by other banks/financial institutions (FIs)/non-
banking financial companies (NBFCs) as underlying
At
March 31, 2019
` in million
At
March 31, 2018
22,450.4
23,803.5
10.5
22,460.9
52.6
23,856.1
Total
1.
During the year ended March 31, 2019, no investment in a security receipt was fully redeemed by the ARC (year ended March 31,
2018: Nil) and there was no gain/loss to the Bank (year ended March 31, 2018: Nil).
Sr.
No.
Particulars
1.
2.
Book value of SRs backed by NPAs
sold by the Bank as underlying
Provision held against above
Book value of SRs backed by
NPAs sold by other banks/financial
institutions/non-banking financial
companies as underlying
Provision held against above
Gross book value
Total provision held against above
Net book value
At March 31, 2019
SRs issued
within past five
years
SRs issued more
than five years
ago but within
past eight years
SRs issued more
than eight years
ago
24,933.6
2,483.2
1,138.7
1,138.7
-
-
24,933.6
2,483.2
22,450.4
10.5
-
1,149.2
1,138.7
10.5
-
-
-
-
-
-
-
` in million
Total
26,072.3
3,621.9
10.5
-
26,082.8
3,621.9
22,460.9
196
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Sr.
No.
Particulars
At March 31, 2018
SRs issued
within past five
years
SRs issued
more than five
years ago but
within past eight
years
SRs issued
more than eight
years ago
1.
2.
Book value of SRs backed by NPAs
sold by the Bank as underlying
Provision held against above
Book value of SRs backed by
NPAs sold by other banks/financial
institutions/non-banking financial
companies as underlying
Provision held against above
Gross book value
Total provision held against above
Net book value
26,502.2
2,698.7
-
-
26,502.2
2,698.7
23,803.5
-
-
52.6
-
52.6
-
52.6
-
-
-
-
-
-
-
` in million
Total
26,502.2
2,698.7
52.6
-
26,554.8
2,698.7
23,856.1
25. Details of non-performing assets purchased/sold, excluding those sold to SC/RC
The Bank did not purchase any non-performing assets in terms of the guidelines issued by RBI circular no.
DBR.No.BP.BC.2/21.04.048/2015-16 dated July 1, 2015 during the year ended March 31, 2019 (year ended
March 31, 2018: Nil).
The following table sets forth, for the periods indicated, details of non-performing assets sold to banks, NBFCs and
other financial institutions.
Particulars
Number 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, 2018
1
Year ended
March 31, 2019
-
-
-
-
3,444.5
3,988.7
544.2
The following table sets forth, for the periods indicated, details of non-performing assets sold to entities, other than
banks, NBFCs and other financial institutions.
Particulars
Number 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, 2018
-
Year ended
March 31, 2019
2
-
28,653.3
28,653.3
-
-
-
197
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
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201
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
During the year ended March 31, 2019, the Bank has not upgraded any borrower to standard category subsequent
to change in ownership in accordance with RBI circular dated February 12, 2018 (year ended March 31, 2018: one
borrower with fund based outstanding of ` 15,452.7 million, which included ` 10,262.0 million of credit substitutes
and shares converted as per the resolution plan at March 31, 2018. The Bank held an aggregate provision of ` 7,785.1
million against this borrower, of which ` 6,508.2 million was against credit substitutes and shares at March 31, 2018).
The following table sets forth, for the periods indicated, details for cases of change in ownership for projects under
implementation (accounts which are currently under the stand-still period).
Particulars
` in million, except number of borrowers
At
At
March 31, 2018
March 31, 2019
Number of project loan borrowers where the Bank has decided to effect
change in ownership
Gross amount outstanding
- Standard
- Standard restructured
- NPA
-
-
-
-
1
2,346.3
-
-
The following table sets forth, for the periods indicated, details of cases where scheme for Sustainable Structuring
of Stressed Assets (S4A) is implemented.
Particulars
Number of borrowers where S4A has been applied
Total gross amount outstanding1
- Standard
- NPA
Gross amount outstanding in Part A
- Standard
- NPA
Gross amount outstanding in Part B
- Standard
- NPA
Provision held
- Standard
- NPA
` in million, except number of borrowers
At
At
March 31, 2018
March 31, 2019
6
6
6,243.62
1,236.2
3,340.42
712.4
2,903.22
523.7
1,924.9
1,377.0
6,596.92
1,144.8
4,084.92
108.7
2,512.0
1,036.1
1,281.4
789.0
1.
2.
Represents loans, credit substitutes and shares under S4A scheme.
Includes outstanding amounting to ` 1,081.6 million at March 31, 2019 (March 31, 2018: ` 1,327.2 million) which was upgraded to
standard from NPA on implementation of S4A and ` 832.4 million at March 31, 2019 (March 31, 2018: Nil) which was upgraded to
standard from NPA on satisfactory performance during specified period.
The Bank does not recognise any amount towards interest on the cases under S4A.
202
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following table sets forth, for the periods indicated, details of cases under flexible structuring of existing loans.
Particulars
Number of borrowers taken up for flexible structuring
Amount of loans taken up for flexible structuring2
- Standard
- NPA
Exposure weighted average duration of loans taken up for
flexible structuring
- Before applying flexible structuring
- After applying flexible structuring
` in million, except number of borrowers
Year ended
March 31, 2018
31
Year ended
March 31, 2019
-
-
-
-
-
11,709.8
-
4.57
10.98
1.
During the year ended March 31, 2018, two borrowers were taken up for flexible structuring, out of which one borrower was
demerged into two entities through NCLAT order dated February 28, 2018.
2.
Represents implementation amount.
27. Concentration of Deposits, Advances, Exposures and NPAs
(I) Concentration of deposits, advances, exposures and NPAs
Concentration of deposits
Total deposits of 20 largest depositors
Deposits of 20 largest depositors as a percentage of total deposits of the Bank
Concentration of advances1
Total advances to 20 largest borrowers (including banks)
Advances to 20 largest borrowers as a percentage of total advances of the Bank
At
March 31, 2019
374,674.8
5.74%
At
March 31, 2019
1,285,208.1
12.05%
` in million
At
March 31, 2018
347,959.8
6.20%
` in million
At
March 31, 2018
1,365,485.0
14.11%
1.
Represents credit exposure (funded and non-funded) including derivatives exposures as per RBI guidelines on exposure norms.
Concentration of exposures1
Total exposure to 20 largest borrowers/customers (including banks)
Exposures to 20 largest borrowers/customers as a percentage of total
exposure of the Bank
1.
Represents credit and investment exposures as per RBI guidelines on exposure norms.
Concentration of NPAs
Total exposure1 to top four NPA accounts
1.
Represents gross exposure (funded and non-funded).
At
March 31, 2019
1,329,728.6
` in million
At
March 31, 2018
1,431,945.8
11.87%
13.95%
At
March 31, 2019
126,059.0
` in million
At
March 31, 2018
154,385.3
203
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
(II) Sector-wise advances
Sr.
No.
Particulars
Priority sector
A.
1. Agriculture and allied activities
2.
3.
Advances to industries sector eligible as
priority sector lending
Services of which:
Transport operators
Wholesale trade
Personal loans of which:
Housing
Vehicle loans
Sub-total (A)
B. Non-priority sector
1. Agriculture and allied activities
4.
Advances to industries sector of which:
Infrastructure
Basic metal and metal products
Chemicals and Chemical Products (Dyes Paints etc.)
Services of which:
Commercial real estate
Wholesale trade
Non-banking financial companies
Personal loans2 of which:
Housing
Sub-total (B)
Total (A)+(B)
Represents loans and advances.
Excludes commercial business loans and dealer funding.
2.
3.
4.
1.
2.
3.
` in million, except percentages
At March 31, 2019
Outstanding
advances
Gross NPAs1
% of gross NPAs1
to total advances
in that sector
447,302.2
397,708.1
225,975.2
141,403.9
58,202.1
643,945.1
472,491.4
146,710.1
1,714,930.6
-
1,564,129.6
487,267.8
216,009.7
179,564.7
1,168,240.2
322,897.1
150,220.3
218,295.4
1,742,551.9
1,108,918.5
4,474,921.7
6,189,852.3
16,663.8
4,386.3
3,942.0
1,845.5
1,310.5
8,239.1
4,138.4
3,666.9
33,231.2
-
333,459.9
96,141.2
41,442.0
6,131.7
66,989.5
15,332.8
9,712.9
2,500.1
23,079.8
9,970.3
423,529.2
456,760.4
3.73%
1.10%
1.74%
1.31%
2.25%
1.28%
0.88%
2.50%
1.94%
-
21.32%
19.73%
19.19%
3.41%
5.73%
4.75%
6.47%
1.15%
1.32%
0.90%
9.46%
7.38%
Sub-sectors have been disclosed where advances exceed 10% of total advances in that sector at reporting date.
Sr.
No.
Particulars
Priority sector
A.
1. Agriculture and allied activities
2.
3.
Advances to industries sector eligible as
priority sector lending
Services of which:
Transport operators
Wholesale trade
204
` in million, except percentages
At March 31, 2018
Outstanding
advances
Gross NPAs1
% of gross NPAs1
to total advances
in that sector
393,267.6
231,019.8
75,247.9
14,846.4
36,832.9
12,330.0
4,387.3
1,599.6
165.5
971.5
3.14%
1.90%
2.13%
1.12%
2.64%
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Sr.
No.
Particulars
4.
Personal loans of which:
Housing
Vehicle loans
Sub-total (A)
B. Non-priority sector
1. Agriculture and allied activities
2.
3.
4.
Advances to industries sector of which:
Infrastructure
Basic metal and metal products
Services of which:
Commercial real estate
Wholesale trade
Non-banking financial companies
Personal loans2 of which:
Housing
Sub-total (B)
Total (A)+(B)
` in million, except percentages
At March 31, 2018
Outstanding
advances
Gross NPAs1
243,380.3
229,255.3
11,946.7
942,915.6
-
1,629,611.9
484,409.9
253,136.8
1,109,598.3
280,361.6
131,292.0
135,066.6
1,697,325.1
1,120,039.7
4,436,535.3
5,379,450.9
2,498.2
2,255.3
120.2
20,815.1
-
415,068.6
127,310.9
63,862.2
75,133.1
10,704.7
5,789.1
0.2
21,385.0
8,706.7
511,586.7
532,401.8
% of gross NPAs1
to total advances
in that sector
1.03%
0.98%
1.01%
2.21%
-
25.47%
26.28%
25.23%
6.77%
3.82%
4.41%
0.00%
1.26%
0.78%
11.53%
9.90%
1.
2.
3.
Represents loans and advances.
Excludes commercial business loans and dealer funding.
Sub-sectors have been disclosed where advances exceed 10% of total advances in that sector at reporting date.
(III) Overseas assets, NPAs1 and revenue
Particulars
Total assets2
Total NPAs (net)
Total revenue2
Year ended
March 31, 2019
890,543.1
31,624.1
42,948.5
` in million
Year ended
March 31, 2018
931,385.2
122,524.3
38,091.2
1.
2.
Represents loans and advances.
Represents the total assets and total revenue of foreign operations as reported in Schedule 18 of the financial statements, note no. 5
on information about business and geographical segments.
205
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
(IV) Off-balance sheet special purpose vehicles (SPVs) sponsored (which are required to be consolidated as per
accounting norms) for the year ended March 31, 2019
(a) The following table sets forth, the names of SPVs/trusts sponsored by the Bank/subsidiaries which
are consolidated.
Sr. No.
A.
B.
Name of the SPV sponsored1
Domestic
1. ICICI Strategic Investments Fund2
2. India Advantage Fund-III2
3. India Advantage Fund-IV2
Overseas
None
1.
2.
SPVs/Trusts which are consolidated and set-up/sponsored by the Bank/Subsidiaries of the Bank.
The nature of business of the above entities is venture capital fund.
(b)
The following table sets forth, the names of SPVs/trusts which are not sponsored by the Bank/subsidiaries
and are consolidated.
Sr. No.
A.
B.
Name of the SPV
Domestic
None
Overseas
None
28. Intra-group exposure
The following table sets forth, for the periods indicated, the details of intra-group exposure.
Sr.
No.
1.
2.
3.
Particulars
Total amount of intra-group exposures
Total amount of top 20 intra-group exposures
Percentage of intra-group exposure to total exposures of the Bank on
borrowers/customers
4. Details of breach of limits on intra-group exposures and regulatory
action thereon, if any
29. Exposure to sensitive sectors
At
March 31, 2019
100,938.0
100,938.0
` in million
At
March 31, 2018
125,838.4
125,838.4
0.90%
1.23%
Nil
Nil
The Bank has exposure 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 exposure to capital market sector.
Particulars
Sr.
No.
1. 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
2. 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
At
March 31, 2019
` in million
At
March 31, 2018
32,604.3
24,451.5
1,170.7
1,336.0
206
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Particulars
Sr.
No.
3. 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
At
March 31, 2019
` in million
At
March 31, 2018
25,489.9
49,530.2
6.
5.
4. 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 stock brokers 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
7.
Bridge loans to companies against expected equity flows/issues
8. 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
9.
10. All exposures to venture capital funds (both registered and unregistered)
11. Others
Total exposure to capital market1
-
-
89,571.4
74,928.9
-
1,500.0
-
-
6,019.6
3,148.2
159,504.1
-
-
-
-
5,634.3
591.7
156,472.6
1.
At March 31, 2019, excludes investment in equity shares of ` 26,626.7 million (March 31, 2018: ` 27,085.1 million) exempted from the
regulatory ceiling, out of which investments of ` 25,023.4 million (March 31, 2018: ` 25,481.8 million) were acquired under resolution
schemes of RBI.
The following table sets forth, for the periods indicated, the summary of exposure to real estate sector.
Sr.
No.
I
Particulars
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
At
March 31, 2019
2,306,322.6
1,801,730.9
300,507.8
458,878.9
` in million
At
March 31, 2018
2,003,591.0
1,573,084.4
188,656.5
400,703.7
45,712.8
40,267.1
5,445.7
189,347.5
29,802.9
25,370.6
4,432.3
189,766.3
II
1.
Indirect exposure
Fund based and non-fund based exposures on National Housing Bank
(NHB) and Housing Finance Companies (HFCs)
Total exposure to real estate sector
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.
189,347.5
2,495,670.1
189,766.3
2,193,357.3
207
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
30. Factoring business
At March 31, 2019, the outstanding receivables acquired by the Bank under factoring business were Nil
(March 31, 2018: Nil).
31. 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
United States of America was 2.69% (March 31, 2018: 3.08%), for Singapore was 1.12% (March 31, 2018: 1.13%)
and for United Kingdom was 1.06% (March 31, 2018: Nil). As the net funded exposure to United States of America,
Singapore and United Kingdom exceeded 1.0% of total funded assets, the Bank held a provision of ` 595.0 million
on country exposure at March 31, 2019 (March 31, 2018: ` 455.0 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
Moderately Low
Moderate
Moderately High
High
Very High
Total
Exposure (net) at
March 31, 2019
1,051,721.0
287,964.5
1,525.9
15,601.1
9.6
-
-
1,356,822.1
Provision held at
March 31, 2019
595.0
-
-
-
-
-
-
595.0
Exposure (net) at
March 31, 2018
914,183.7
282,931.3
8,706.1
7,737.7
9,928.4
-
-
1,223,487.2
` in million
Provision held at
March 31, 2018
455.0
-
-
-
-
-
-
455.0
32. Details of Single Borrower Limit and Borrower Group Limit exceeded by the Bank
During the year ended March 31, 2019 and March 31, 2018, the Bank has complied with the RBI guidelines on single
borrower and borrower group limit.
33. Unsecured advances against intangible assets
The Bank has not made advances against intangible collaterals of the borrowers, which are classified as ‘Unsecured’
in the financial statements at March 31, 2019 (March 31, 2018: Nil).
34. Revaluation of fixed assets
The Bank follows the revaluation model for its premises (land and buildings) other than improvements to leasehold
property as per AS 10 – ‘Property, Plant and Equipment’. The Bank had initially revalued its premises at March 31,
2016 and subsequently as per the Bank’s policy, annual revaluation is carried out through external valuers, using
methodologies such as direct comparison method and income generation method and the incremental amount has
been taken to revaluation reserve. The revalued amount at March 31, 2019 was ` 56,852.6 million (March 31, 2018:
` 56,637.9 million) as compared to the historical cost less accumulated depreciation of ` 26,407.5 million (March 31,
2018: ` 26,606.0 million).
The revaluation reserve is not available for distribution of dividend.
208
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
35. 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 31 of preceding year
Additions during the year
Deductions during the year
Depreciation to date
Net block
36. Description of contingent liabilities
The following table describes the nature of contingent liabilities of the Bank.
At
March 31, 2019
18,608.1
2,477.2
(3,681.9)
(12,789.4)
4,614.0
` in million
At
March 31, 2018
15,066.6
3,573.5
(32.0)
(14,033.0)
4,575.1
Contingent liability
Brief Description
Sr.
No.
1.
Claims against the Bank, not
acknowledged as debts
2.
Liability for partly paid investments
3.
Liability on account of outstanding
forward exchange contracts
4. Guarantees given on behalf
of constituents, acceptances,
endorsements and other obligations
This item represents 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 AS 29, the Bank has reviewed and classified
these items as possible obligations based on legal opinion/
judicial precedents/assessment by the Bank.
This item represents amounts remaining unpaid towards liability for
partly paid investments. These payment obligations of the Bank do
not have any profit/loss impact.
The Bank enters into foreign exchange contracts in the normal
course of its 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.
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 customers fail to fulfill their financial or
performance obligations.
209
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Contingent liability
Brief Description
Sr.
No.
5.
Currency swaps, interest rate
swaps, currency options and
interest rate futures
6. 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), bill re-discounting, amount transferred to RBI under the
Depositor Education and Awareness Fund (DEAF), exposure under
partial credit enhancement, commitment towards contribution to
venture fund 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.
37. Insurance business
The following table sets forth, for the periods indicated, the break-up of income derived from insurance business.
Sr.
No.
1.
2.
3.
Particulars
Income from selling life insurance policies
Income from selling non-life insurance policies
Income from selling mutual fund/collective investment
scheme products
Year ended
March 31, 2019
9,792.3
1,382.8
` in million
Year ended
March 31, 2018
8,821.1
1,133.5
3,156.7
4,999.5
38. Employee benefits
Pension
The following tables set forth, for the periods indicated, movement of the present value of the defined benefit
obligation, fair value of plan assets and other details for pension benefits.
Particulars
Opening obligations
Service cost
Interest cost
Actuarial (gain)/loss
Liabilities extinguished on settlement
Benefits paid
Obligations at the end of year
210
Year ended
March 31, 2019
15,391.1
232.2
1,123.7
1,803.8
(1,833.7)
(176.8)
16,540.3
` in million
Year ended
March 31, 2018
16,686.9
275.0
1,113.1
(1,162.8)
(1,399.0)
(122.1)
15,391.1
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Particulars
Opening plan assets, at fair value
Expected return on plan assets
Actuarial gain/(loss)
Assets distributed on settlement
Contributions
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) of AS 15 on
‘employee benefits’)
Asset/(liability)
Cost1
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
Insurer managed funds
Government of India securities
Corporate bonds
Equity securities in listed companies
Others
Assumptions
Discount rate
Salary escalation rate:
On Basic pay
On Dearness relief
Estimated rate of return on plan assets
Year ended
March 31, 2019
16,303.7
1,381.1
(125.9)
(2,037.4)
94.1
(176.8)
15,438.8
15,438.8
(16,540.3)
` in million
Year ended
March 31, 2018
16,888.1
1,433.4
(449.6)
(1,554.5)
108.4
(122.1)
16,303.7
16,303.7
(15,391.1)
-
(1,101.5)
232.2
1,123.7
(1,381.1)
1,929.7
203.7
(310.1)
1,798.1
1,255.2
1,000.0
1.00%
49.63%
44.91%
3.55%
0.91%
7.05%
1.50%
7.00%
8.00%
(310.1)
602.5
275.0
1,113.1
(1,433.4)
(713.2)
155.5
241.8
(361.2)
983.8
3,000.0
0.88%
48.98%
43.48%
6.00%
0.66%
7.45%
1.50%
7.00%
8.00%
1.
Included in line item ‘Payments to and provision for employees’ of Schedule-16 Operating expenses.
Estimated rate of return on plan assets is based on the expected average long-term rate of return on investments of
the Fund during the estimated term of the obligations.
211
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Experience adjustment
Particulars
Plan assets
Defined benefit obligations
Amount not recognised as an
asset (limit in para 59(b) of AS
15 on ‘employee benefits’)
Surplus/(deficit)
Experience
adjustment on plan assets
Experience adjustment on
plan liabilities
Year ended
March 31, 2019
15,438.8
(16,540.3)
Year ended
March 31, 2018
16,303.7
(15,391.1)
Year ended
March 31, 2017
16,888.1
(16,686.9)
Year ended
March 31, 2016
13,191.6
(14,191.6)
` in million
Year ended
March 31, 2015
10,103.4
(12,999.9)
-
(1,101.5)
(310.1)
602.5
(68.4)
132.8
-
(1,000.0)
-
(2,896.5)
(125.9)
(449.6)
589.5
(4.1)
104.7
1,038.6
290.1
(80.0)
1,503.4
1,271.2
Gratuity
The following tables set forth, for the periods indicated, movement of the present value of the defined benefit
obligation, fair value of plan assets and other details for gratuity benefits.
Particulars
Opening obligations
Add: Adjustment for exchange fluctuation on opening obligations
Adjusted opening obligations
Service cost
Interest cost
Actuarial (gain)/loss
Past service cost
Liability transferred from/to other companies
Benefits paid
Obligations at the end of the year
Opening plan assets, at fair value
Expected return on plan assets
Actuarial gain/(loss)
Contributions
Asset transferred from/to other companies
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) of AS 15 on
‘employee benefits’)
Asset/(liability)
Cost1
Service cost
Interest cost
Expected return on plan assets
Year ended
March 31, 2019
9,087.7
3.0
9,090.7
942.9
710.4
269.0
-
12.1
(910.7)
10,114.4
8,979.9
726.3
(60.3)
1,073.9
12.1
(910.7)
9,821.2
9,821.2
(10,114.4)
-
(293.2)
942.9
710.4
(726.3)
` in million
Year ended
March 31, 2018
8,701.8
0.4
8,702.2
893.4
599.3
(318.5)
14.7
4.4
(807.8)
9,087.7
8,559.0
689.6
(115.9)
650.5
4.5
(807.8)
8,979.9
8,979.9
(9,087.7)
-
(107.8)
893.4
599.3
(689.6)
212
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Particulars
Actuarial (gain)/loss
Past service cost
Exchange fluctuation loss/(gain)
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
Insurer managed funds
Government of India securities
Corporate bonds
Special deposit schemes
Equity
Others
Assumptions
Discount rate
Salary escalation rate
Estimated rate of return on plan assets
Year ended
March 31, 2019
329.3
-
3.0
-
1,259.3
666.0
800.0
` in million
Year ended
March 31, 2018
(202.6)
14.7
0.4
-
615.6
573.7
1,500.0
-
29.90%
43.51%
2.96%
12.89%
10.74%
7.40%
7.00%
8.00%
-
27.49%
48.70%
3.25%
15.70%
4.86%
7.60%
7.00%
8.00%
1.
Included in line item ‘Payments to and provision for employees’ of Schedule-16 Operating expenses.
Estimated rate of return on plan assets is based on the expected average long-term rate of return 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) of AS
15 on ‘employee benefits’)
Surplus/(deficit)
Experience
adjustment on plan assets
Experience adjustment on
plan liabilities
Year ended
March 31, 2019
9,821.2
(10,114.4)
Year ended
March 31, 2018
8,979.9
(9,087.7)
Year ended
March 31, 2017
8,559.0
(8,701.8)
Year ended
March 31, 2016
6,933.0
(7,386.7)
` in million
Year ended
March 31, 2015
6,570.7
(6,754.6)
-
(293.2)
(60.3)
118.4
-
(107.8)
(115.9)
162.0
-
(142.8)
454.5
125.2
-
(453.7)
(345.7)
120.1
-
(183.9)
589.1
41.9
The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.
Provident Fund (PF)
As there is no liability towards interest rate guarantee on exempt provident fund on the basis of actuarial valuation,
the Bank has not made any provision for the year ended March 31, 2019 (year ended March 31, 2018: Nil).
213
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following tables set forth, for the periods indicated, movement of the present value of the defined benefit
obligation, fair value of plan assets and other details for provident fund.
Particulars
Opening obligations
Service cost
Interest cost
Actuarial (gain)/loss
Employees contribution
Liability transferred from/to other companies
Benefits paid
Obligations at end of the year
Opening plan assets
Expected return on plan assets
Actuarial gain/(loss)
Employer contributions
Employees contributions
Asset transferred from/to other companies
Benefits paid
Closing plan assets
Plan assets at the end of the year
Present value of the defined benefit obligations at the end of the year
Asset/(liability)
Cost1
Service cost
Interest cost
Expected return on plan assets
Actuarial (gain)/loss
Net cost
Actual return on plan assets
Expected employer's contribution next year
Investment details of plan assets
Government of India securities
Corporate bonds
Special deposit scheme
Others
Assumption
Discount rate
Expected rate of return on assets
Discount rate for the remaining term to maturity of investments
Average historic yield on the investment
Guaranteed rate of return
Year ended
March 31, 2019
25,524.4
1,330.0
1,920.9
402.6
2,449.0
288.6
(3,158.0)
28,757.5
25,524.4
2,311.7
11.8
1,330.0
2,449.0
288.6
(3,158.0)
28,757.5
28,757.5
(28,757.5)
-
1,330.0
1,920.9
(2,311.7)
390.8
1,330.0
2,323.5
1,423.1
47.49%
45.54%
1.88%
5.09%
7.40%
8.75%
7.46%
8.81%
8.65%
` in million
Year ended
March 31, 2018
22,596.8
1,233.8
1,512.4
412.4
2,314.8
304.8
(2,850.6)
25,524.4
22,596.8
1,960.4
(35.6)
1,233.8
2,314.8
304.8
(2,850.6)
25,524.4
25,524.4
(25,524.4)
-
1,233.8
1,512.4
(1,960.4)
448.0
1,233.8
1,924.8
1,320.2
46.67%
46.57%
2.12%
4.64%
7.60%
8.95%
7.55%
8.90%
8.65%
1.
Included in line item ‘Payments to and provision for employees’ of Schedule-16 Operating expenses.
214
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Experience adjustment
Particulars
Plan assets
Defined benefit obligations
Amount not recognised as an
asset (limit in para 59(b) of AS
15 on ‘employee benefits’)
Surplus/(deficit)
Experience
adjustment on plan assets
Experience adjustment on
plan liabilities
Year ended
March 31, 2019
28,757.5
(28,757.5)
Year ended
March 31, 2018
25,524.4
(25,524.4)
Year ended
March 31, 2017
22,596.8
(22,596.8)
Year ended
March 31, 2016
19,920.6
(19,920.6)
` in million
Year ended
March 31, 2015
17,746.8
(17,746.8)
-
-
11.8
402.6
-
-
(35.6)
412.4
-
-
(26.8)
252.8
-
-
8.7
199.0
-
-
346.4
322.3
The Bank has contributed ` 2,067.3 million to provident fund for the year ended March 31, 2019 (year ended March 31,
2018: ` 1,982.2 million), which includes compulsory contribution made towards employee pension scheme under
Employees Provident Fund and Miscellaneous Provisions Act, 1952.
Superannuation Fund
The Bank has contributed ` 224.9 million for the year ended March 31, 2019 (year ended March 31, 2018: ` 207.2
million) to Superannuation Fund for employees who had opted for the scheme.
National Pension Scheme (NPS)
The Bank has contributed ` 95.2 million for the year ended March 31, 2019 (year ended March 31, 2018: ` 76.8
million) to NPS for employees who had opted for the scheme.
Compensated absence
The following table sets forth, for the periods indicated, movement in provision for compensated absence.
Particulars
Cost1
Assumptions
Discount rate
Salary escalation rate
Year ended
March 31, 2019
734.9
` in million
Year ended
March 31, 2018
675.3
7.40%
7.00%
7.60%
7.00%
1.
Included in line item ‘Payments to and provision for employees’ of Schedule-16 Operating expenses.
39. Movement in provision for credit cards/debit cards/savings accounts and direct marketing agents reward
points
The following table sets forth, for the periods indicated, movement in provision for credit cards/debit cards/savings
accounts reward points.
Particulars
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, 2019
1,892.9
1,892.3
(1,699.3)
2,085.9
` in million
Year ended
March 31, 2018
1,627.3
1,573.0
(1,307.4)
1,892.9
1.
The closing provision is based on the actuarial valuation of accumulated credit cards/debit cards/savings accounts reward points.
215
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following table sets forth, for the periods indicated, movement in provision for reward points to direct
marketing agents.
Particulars
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 points
Year ended
March 31, 2019
179.6
170.6
(153.3)
196.9
` in million
Year ended
March 31, 2018
201.5
101.1
(123.0)
179.6
40. 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
Provisions for depreciation of investments
Provision towards non-performing and other assets1
Provision towards income tax
- Current2
- Deferred
Floating provision
Other provisions and contingencies3
Total provisions and contingencies
Year ended
March 31, 2019
3,562.2
168,112.0
` in million
Year ended
March 31, 2018
18,773.4
142,445.2
33,606.0
(29,471.4)
-
24,937.2
200,746.0
26,618.5
(20,047.2)
-
11,851.2
179,641.1
1.
2.
Includes provision towards NPA amounting to ` 170,969.1 million (March 31, 2018: ` 163,793.6 million).
During the year ended March 31, 2018, the Bank had recognised Minimum Alternate Tax (MAT) credit as an asset amounting to
` 2,178.0 million, as the normal income tax liability related to the year ended March 31, 2017 was less than the MAT computed as per
section 115JB of the Income tax Act, 1961. The MAT asset was fully utilised against the normal income tax liability for the year ended
March 31, 2018.
3.
Includes general provision made towards standard assets, provision on fixed assets acquired under debt-asset swap and non-fund
based facilities.
The Bank has assessed its obligations arising in the normal course of business, including pending litigations,
proceedings pending with tax authorities and other contracts including derivative and long term contracts.
In accordance with the provisions of AS 29 on ‘Provisions, Contingent Liabilities and Contingent Assets’, the
Bank recognises a provision for material foreseeable losses when it 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. In cases where the available information indicates that the loss on the contingency
is reasonably possible or the amount of loss cannot be reasonably estimated, a disclosure to this effect is made as
contingent liabilities in the financial statements. The Bank does not expect the outcome of these proceedings to have
a materially adverse effect on its financial results.
216
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following table sets forth, for the periods indicated, the movement in provision for legal and fraud cases,
operational risk and other contingencies.
Particulars
Opening provision
Movement during the year (net)
Closing provision
1.
Excludes provision towards sundry expenses.
41. Provision for income tax
Year ended
March 31, 2019
10,996.6
9,622.1
20,618.7
` in million
Year ended
March 31, 2018
7,861.3
3,135.3
10,996.6
The provision for income tax (including deferred tax) for the year ended March 31, 2019 amounted to ` 4,134.6
million (March 31, 2018: ` 6,571.3 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 transactions with
international related parties and specified transactions with domestic related parties are primarily at arm's length so
that the above legislation does not have material impact on the financial statements.
42. Deferred tax
At March 31, 2019, the Bank has recorded net deferred tax assets of ` 104,365.7 million (March 31, 2018: ` 74,770.2
million), which have 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 assets
Provision for bad and doubtful debts
Foreign currency translation reserve3
Others
Total deferred tax assets
Deferred tax liabilities
Special reserve deduction
Depreciation on fixed assets
Interest on refund of taxes3
Total deferred tax liabilities
Total net deferred tax assets/(liabilities)
At
March 31, 20191
` in million
At
March 31, 20182
132,736.9
282.9
9,276.5
142,296.3
30,482.0
4,816.0
2,632.6
37,930.6
104,365.7
102,010.3
861.2
6,603.6
109,475.1
28,653.2
4,974.6
1,077.1
34,704.9
74,770.2
1.
2.
3.
Tax rate of 34.944% is adopted based on Finance Act, 2019.
Tax rate of 34.944% is adopted based on Finance Act, 2018.
These items are considered in accordance with the requirements of Income Computation and Disclosure Standards (ICDS).
As per ICDS and subsequent circular issued by Central Board of Direct Taxes, during the year ended March 31,
2017, the Bank had recognised tax expense and deferred tax asset on closing balance of Foreign Currency
Translation Reserve (FCTR) at March 31, 2017. Delhi High Court struck down certain part of ICDS in November 2017.
Further, pursuant to amendments in Income tax Act, 1961 through Finance Act, 2018, the movement during the
year in FCTR has become taxable effective from April 1, 2016. Accordingly, tax expense of ` 4,159.0 million and
equal amount of deferred tax asset on the opening balance of FCTR at April 1, 2016 recognised earlier under ICDS
has been reversed during the year ended March 31, 2018.
217
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
43. Details of provisioning pertaining to fraud accounts
The following table sets forth, for the periods indicated, the details of provisioning pertaining to fraud accounts.
Particulars
Number of frauds reported
Amount involved in frauds
Provision made2
Unamortised provision debited from balance in profit and loss account
under ‘Reserves and Surplus’
` in million, except number of frauds
Year ended
March 31, 2018
2,938
5,895.7
2,087.5
Year ended
March 31, 2019
2,1311
23,165.21
12,207.7
-
199.8
1.
Includes three borrower accounts with outstanding of ` 7,948.7 million at March 31, 2018 accounted as fraud during the year ended
March 31, 2018. The Bank made a provision of ` 2,894.5 million through profit and loss account and ` 5,054.2 million through balance
in profit and loss account under ‘Reserves and Surplus’ during the year ended March 31, 2018. As permitted by RBI, provision made
through balance in profit and loss account under ‘Reserves and Surplus’ was reversed and recognised through profit and loss
account during the year ended March 31, 2019.
2.
Excludes amount written off and interest reversal.
44. Proposed dividend on equity shares
The Board of Directors at its meeting held on May 6, 2019 has recommended a dividend of ` 1.00 per equity share for
the year ended March 31, 2019 (year ended March 31, 2018: ` 1.50 per equity share). The declaration and payment
of dividend is subject to requisite approvals.
45. Dividend distribution tax
Dividend received from Indian subsidiaries, on which dividend distribution tax has been paid by them and dividend
received from overseas subsidiaries, on which tax has been paid under section 115BBD of the Income Tax Act,
1961, have been reduced from dividend to be distributed by the Bank for the purpose of computation of dividend
distribution tax as per section 115-O of the Income Tax Act, 1961.
46. 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.
I.
Related parties
Subsidiaries
ICICI Bank Canada, ICICI Bank UK PLC, ICICI Home Finance Company Limited, ICICI International Limited,
ICICI Investment Management Company Limited, ICICI Lombard General Insurance Company Limited, ICICI
Prudential Asset Management Company Limited, ICICI Prudential Life Insurance Company Limited, ICICI
Prudential Pension Funds Management Company Limited, ICICI Prudential Trust Limited, ICICI Securities
Holdings Inc., ICICI Securities Inc., ICICI Securities Limited, ICICI Securities Primary Dealership Limited, ICICI
Trusteeship Services Limited and ICICI Venture Funds Management Company Limited.
Associates/joint ventures/other related entities
Arteria Technologies Private Limited1, India Advantage Fund-III, India Advantage Fund-IV, India Infradebt Limited,
ICICI Merchant Services Private Limited, I-Process Services (India) Private Limited, NIIT Institute of Finance,
Banking and Insurance Training Limited, ICICI Strategic Investments Fund2, Comm Trade Services Limited and
ICICI Foundation for Inclusive Growth.
1.
2.
Identified as related party effective from May 29, 2018.
Entity consolidated as per Accounting Standard (AS) 21 on ‘Consolidated Financial Statements’.
218
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Key management personnel
Mr. Sandeep Bakhshi1, Ms. Vishakha Mulye, Mr. Vijay Chandok, Mr. Anup Bagchi, Mr. N. S. Kannan2 and
Ms. Chanda Kochhar3.
1.
2.
3.
Identified as related party effective from June 19, 2018.
Ceased to be related party effective close of business hours on June 18, 2018.
Ceased to be related party effective from October 4, 2018.
Relatives of key management personnel
Ms. Mona Bakhshi1, Mr. Shivam Bakhshi1, Ms. Esha Bakhshi1, Ms. Minal Bakhshi1, Mr. Sameer Bakhshi1,
Mr. Vivek Mulye, Ms. Vriddhi Mulye, Dr. Gauresh Palekar, Ms. Shalaka Gadekar, Ms. Manisha Palekar,
Ms. Poonam Chandok, Ms. Saluni Chandok, Ms. Simran Chandok, Mr. C. V. Kumar, Ms. Shad Kumar,
Ms. Sanjana Gulati, Ms. Mitul Bagchi, Mr. Aditya Bagchi, Mr. Shishir Bagchi, Mr. Arun Bagchi , Mr. Animesh Bagchi,
Ms. Rangarajan Kumudalakshmi2, Ms. Aditi Kannan2, Ms. Sudha Narayanan2, Mr. Raghunathan Narayanan2,
Mr. Rangarajan Narayanan2, Mr. Deepak Kochhar3, Mr. Arjun Kochhar3, Ms. Aarti Kaji3 and Mr. Mahesh Advani3.
1.
2.
3.
Identified as related party effective from June 19, 2018.
Ceased to be related party effective close of business hours on June 18, 2018.
Ceased to be related party effective from October 4, 2018.
II. Transactions with related parties
The following table sets forth, for the periods indicated, the significant transactions between the Bank and its
related parties.
Items
Interest income
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total interest income
Fee, commission and other income
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total fee, commission and other income
Commission income on guarantees issued
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total commission income on guarantees issued
Income from custodial services
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total income from custodial services
Gain/(loss) on forex and derivative transactions (net)2
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
240.5
44.4
11.7
0.01
296.6
12,225.7
20.0
0.2
0.01
12,245.9
30.2
0.1
-
-
30.3
16.8
-
-
-
16.8
489.1
29.4
9.0
0.1
527.6
12,080.3
13.9
0.01
0.01
12,094.2
35.2
0.1
-
-
35.3
26.8
-
-
-
26.8
219
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Items
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total gain/(loss) on forex and derivative transactions (net)
Dividend income
Subsidiaries
Associates/joint ventures/others
Total dividend income
Insurance claims received
Subsidiaries
Associates/joint ventures/others
Total insurance claims received
Recovery of lease of premises, common corporate and
facilities expenses
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total recovery of lease of premises, common corporate and facilities
expenses
Payment of lease of premises, common corporate and
facilities expenses
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total payment of lease of premises, common corporate and facilities
expenses
Recovery for secondment of employees (net)
Subsidiaries
Associates/joint ventures/others
Total recovery for secondment of employees (net)
Reimbursement of expenses from related parties
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total reimbursement of expenses from related parties
Interest expense
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total interest expense
Year ended
March 31, 2019
665.3
0.1
-
-
665.4
` in million
Year ended
March 31, 2018
44.5
(0.0)1
-
-
44.5
10,779.5
62.9
10,842.4
111.8
-
111.8
1,732.5
59.7
-
-
1,792.2
76.9
-
-
-
76.9
27.7
9.4
37.1
1.3
-
-
-
1.3
191.3
7.8
4.2
1.7
205.0
12,140.6
62.9
12,203.5
127.5
-
127.5
1,611.1
69.2
-
-
1,680.3
73.1
-
-
-
73.1
11.2
8.7
19.9
1.4
3.3
-
-
4.7
303.6
5.4
10.2
3.1
322.3
220
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS Items
Remuneration to wholetime directors3
Key management personnel
Total remuneration to wholetime directors
Reimbursement of expenses to related parties
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total reimbursement of expenses to related parties
Insurance premium paid
Subsidiaries
Associates/joint ventures/others
Total insurance premium paid
Brokerage, fee and other expenses
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total brokerage, fee and other expenses
Donation given
Subsidiaries
Associates/joint ventures/others
Total donation given
Dividend paid
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total dividend paid
Purchase of investments
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total purchase of investments
Investments in the securities issued by related parties
Subsidiaries
Associates/joint ventures/others
Total investments in the securities issued by related parties
Sale of investments
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total sale of investments
Redemption/buyback of investments
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
270.5
270.5
45.9
0.1
-
-
46.0
5,779.0
-
5,779.0
486.7
9,451.1
-
-
9,937.8
-
380.0
380.0
-
-
6.6
0.01
6.6
35,839.6
-
-
-
35,839.6
-
2,740.0
2,740.0
37,759.6
-
-
-
37,759.6
232.9
232.9
784.5
0.1
-
-
784.6
2,869.0
-
2,869.0
503.9
6,833.4
-
-
7,337.3
-
560.0
560.0
-
-
8.3
0.01
8.3
50,279.2
-
-
-
50,279.2
-
6,462.0
6,462.0
29,950.3
-
-
-
29,950.3
221
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS Items
Subsidiaries
Associates/joint ventures/others
Total redemption/buyback of investments
Unfunded risk participation
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total unfunded risk participation
Sale of loans
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total sale of loans
Purchase of fixed assets
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total purchase of fixed assets
Sale of fixed assets
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total sale of fixed assets
Year ended
March 31, 2019
-
175.2
175.2
` in million
Year ended
March 31, 2018
5,065.0
190.1
5,255.1
-
-
-
-
-
88.7
-
-
-
88.7
21.3
-
-
-
21.3
6.1
-
7.2
-
13.3
1,291.6
-
-
-
1,291.6
1,403.9
-
-
-
1,403.9
1.2
-
-
-
1.2
2.2
-
-
-
2.2
1.
2.
Insignificant amount.
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. 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.
3.
Excludes the perquisite value on employee stock options exercised, contribution to gratuity fund and includes performance
bonus paid during the period.
III. Material transactions with related parties
The following table sets forth, for the periods indicated, the material transactions between the Bank and its
related parties. 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.
Particulars
ICICI Home Finance Company Limited
ICICI Securities Primary Dealership Limited
India Infradebt Limited
Interest income
1.
2.
3.
Fee, commission and other income
1.
ICICI Prudential Life Insurance Company Limited
222
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
171.6
66.6
41.1
368.5
111.6
29.4
9,822.6
8,818.7
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Particulars
ICICI Bank UK PLC
ICICI Lombard General Insurance Company Limited
ICICI Prudential Asset Management Company Limited
ICICI Prudential Life Insurance Company Limited
ICICI Securities Limited
ICICI Prudential Asset Management Company Limited
ICICI Bank Canada
ICICI Lombard General Insurance Company Limited
ICICI Home Finance Company Limited
ICICI Securities Primary Dealership Limited
ICICI Bank UK PLC
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Prudential Asset Management Company Limited
2.
3.
Commission income on guarantees issued
1.
Income from custodial services
ICICI Prudential Asset Management Company Limited
1.
2.
ICICI Securities Primary Dealership Limited
Gain/(loss) on forex and derivative transactions (net)1
1.
2.
3.
4.
5.
6.
Dividend income
1.
2.
3.
4.
5.
Insurance claims received
ICICI Prudential Life Insurance Company Limited
1.
2.
ICICI Lombard General Insurance Company Limited
Recovery of lease of premises, common corporate and
facilities expenses
1.
2.
3.
4.
5.
Payment of lease of premises, common corporate and
facilities expenses
1.
Recovery for secondment of employees
1.
2.
3.
Reimbursement of expenses from related parties
ICICI Home Finance Company Limited
1.
2.
India Infradebt Limited
Interest expense
1.
2.
3.
ICICI Home Finance Company Limited
ICICI Securities Limited
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Bank UK PLC
ICICI Securities Limited
ICICI Prudential Life Insurance Company Limited
ICICI Bank UK PLC
ICICI Securities Limited
I-Process Services (India) Private Limited
ICICI Prudential Life Insurance Company Limited
ICICI Venture Funds Management Company Limited
Year ended
March 31, 2019
1,440.7
330.6
` in million
Year ended
March 31, 2018
1,213.7
1,360.8
28.2
12.7
4.0
1,244.3
(472.6)
(177.4)
30.2
16.4
3.2
3,719.6
1,939.6
1,656.5
1,373.6
1,269.2
60.9
50.9
373.5
291.1
289.8
269.4
248.0
68.1
22.7
9.4
5.4
1.3
-
107.6
41.8
39.4
33.3
23.7
3.1
(7.9)
(565.1)
535.3
54.0
8.7
14.8
5,435.9
1,771.8
2,268.6
1,092.3
404.6
85.3
42.2
377.5
288.0
232.7
226.4
260.6
66.3
10.1
8.7
1.2
1.4
3.3
87.1
190.0
24.6
223
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS Particulars
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
ICICI Foundation for Inclusive Growth
I-Process Services (India) Private Limited
ICICI Merchant Services Private Limited
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Bank UK PLC
ICICI Bank Canada
ICICI Lombard General Insurance Company Limited
ICICI Securities Limited
Remuneration to wholetime directors2
1. Mr. Sandeep Bakhshi3
2. Ms. Vishakha Mulye
3. Mr. Vijay Chandok
4. Mr. Anup Bagchi
5. Mr. N. S. Kannan4
6. Ms. Chanda Kochhar5
Reimbursement of expenses to related parties
1.
2.
3.
4.
Insurance premium paid
1.
2.
Brokerage, fee and other expenses
1.
2.
Donation given
1.
Dividend paid
1. Mr. Sandeep Bakhshi3
2. Ms. Vishakha Mulye
3. Mr. Vijay Chandok
4. Mr. N. S. Kannan4
5. Ms. Chanda Kochhar5
Purchase of investments
1.
2.
Investments in the securities issued by related parties
1.
Sale of investments
1.
2.
Redemption/buyback of investments
India Advantage Fund-III
1.
India Advantage Fund-IV
2.
3.
ICICI Bank Canada
Unfunded risk participation
1.
ICICI Bank UK PLC
Sale of loans
ICICI Home Finance Company Limited
1.
2.
ICICI Bank UK PLC
Purchase of fixed assets
1.
ICICI Prudential Life Insurance Company Limited
ICICI Securities Primary Dealership Limited
ICICI Securities Primary Dealership Limited
ICICI Prudential Life Insurance Company Limited
ICICI Prudential Life Insurance Company Limited
India Infradebt Limited
224
47.2
50.2
45.5
44.1
9.4
74.1
28.7
12.6
4.5
-
3,876.5
1,902.5
5,327.1
4,112.9
N.A.
43.1
44.1
37.3
45.1
63.3
27.9
6.7
193.6
553.8
1,169.5
1,699.5
4,516.6
2,303.1
380.0
560.0
0.7
1.3
0.06
-
4.6
N.A.
1.5
0.06
1.1
5.7
32,457.9
3,325.9
42,642.3
6,045.6
2,740.0
6,462.0
19,144.6
16,598.0
16,353.3
12,379.0
119.4
55.8
-
-
88.7
-
20.7
108.2
81.9
5,065.0
1,291.6
-
1,403.9
-
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS ICICI Home Finance Company Limited
Particulars
2.
Sale of fixed assets
1.
2.
3. Ms. Chanda Kochhar5
ICICI Home Finance Company Limited
ICICI Prudential Asset Management Company Limited
Year ended
March 31, 2019
-
` in million
Year ended
March 31, 2018
1.1
4.0
-
7.2
-
2.2
-
1.
2.
3.
4.
5.
6.
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. 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.
Excludes the perquisite value on employee stock options exercised, contribution to gratuity fund and includes performance
bonus paid during the period.
Identified as related party effective from June 19, 2018.
Ceased to be related party effective close of business hours on June 18, 2018.
Ceased to be related party effective from October 4, 2018.
Insignificant amount.
IV. Related party outstanding balances
The following table sets forth, for the periods indicated, the balances payable to/receivable from related parties.
Items
Deposits with the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total deposits with the Bank
Investments of related parties in the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total investments of related parties in the Bank
Call/term money borrowed by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total call/term money borrowed by the Bank
Reverse repurchase
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total reverse repurchase
Payables2
Subsidiaries
At
March 31, 2019
` in million
At
March 31, 2018
27,168.2
523.1
63.2
10.3
27,764.8
1,587.3
-
3.1
0.01
1,590.4
-
-
-
-
-
-
-
-
-
-
111.3
7,652.6
1,070.4
146.1
120.8
8,989.9
3,477.6
-
7.9
0.01
3,485.5
-
-
-
-
-
23,044.5
-
-
-
23,044.5
515.1
225
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Items
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total payables
Deposits made by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total deposits made by the Bank
Call/term money lent by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total call/term money lent by the Bank
Investments of the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total investments of the Bank
Advances by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total advances by the Bank
Receivables2
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total receivables
Guarantees/letters of credit/indemnity given by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total guarantees/letters of credit/indemnity given by the Bank
Guarantees/letters of credit/indemnity issued by related parties
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total guarantees/letters of credit/indemnity issued by related parties
At
March 31, 2019
1,789.2
0.01
0.01
1,900.5
` in million
At
March 31, 2018
749.8
0.01
0.01
1,264.9
1,415.6
-
-
-
1,415.6
-
-
-
-
-
98,028.5
7,460.0
-
-
105,488.5
1,111.5
45.0
254.1
0.4
1,411.0
2,154.5
14.7
-
-
2,169.2
11,821.0
11.2
-
-
11,832.2
4,399.2
-
-
-
4,399.2
886.9
-
-
-
886.9
3,000.0
-
-
-
3,000.0
98,315.7
4,147.6
-
-
102,463.3
4,077.2
-
161.1
0.7
4,239.0
1,608.2
1.9
-
-
1,610.1
13,747.5
1.1
-
-
13,748.6
1,983.4
-
-
-
1,983.4
226
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS Items
Swaps/forward contracts (notional amount)
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total swaps/forward contracts (notional amount)
Unfunded risk participation
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total unfunded risk participation
1.
Insignificant amount.
At
March 31, 2019
` in million
At
March 31, 2018
274,720.7
-
-
-
274,720.7
819.4
-
-
-
819.4
731,169.6
-
-
-
731,169.6
1,279.4
-
-
-
1,279.4
2.
3.
4.
Excludes mark-to-market on outstanding derivative transactions.
At March 31, 2019, 20,022,000 (March 31, 2018: 38,444,750) employee stock options for key management personnel were
outstanding. Excludes stock options granted to key management personnel, which are pending regulatory approvals.
During the year ended March 31, 2019, 2,062,000 (year ended March 31, 2018: 408,119) employee stock options with total
exercise price of ` 296.3 million (year ended March 31, 2018: ` 60.0 million) were exercised by the key management personnel.
V. Related party maximum balances
The following table sets forth, for the periods indicated, the maximum balances payable to/receivable from
related parties.
Items
Deposits with the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total deposits with the Bank
Investments of related parties in the Bank1
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total investments of related parties in the Bank
Call/term money borrowed by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total call/term money borrowed by the Bank
Reverse repurchase
Subsidiaries
Associates/joint ventures/others
Key management personnel
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
28,243.8
5,479.4
234.6
175.3
34,133.1
1,637.3
-
9.3
0.02
1,646.6
-
-
-
-
-
23,044.5
-
-
26,475.9
5,613.6
198.2
550.5
32,838.2
3,529.3
-
7.9
0.02
3,537.2
1,000.0
-
-
-
1,000.0
23,044.5
-
-
227
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Items
Relatives of key management personnel
Total reverse repurchase
Payables1,3
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total payables
Deposits made by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total deposits made by the Bank
Call/term money lent by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total call/term money lent by the Bank
Investments of the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total investments of the Bank
Advances by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total advances by the Bank
Receivables3
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total receivables
Guarantees/letters of credit/indemnity given by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total guarantees/letters of credit/indemnity given by the Bank
Year ended
March 31, 2019
-
23,044.5
` in million
Year ended
March 31, 2018
-
23,044.5
111.3
1,789.2
0.02
0.1
1,900.6
9,298.5
-
-
-
9,298.5
10,000.0
-
-
-
10,000.0
98,315.7
8,175.5
-
-
106,491.2
7,809.5
45.0
256.2
0.9
8,111.6
3,735.6
115.8
-
-
3,851.4
16,184.2
12.7
-
-
16,196.9
515.1
1,191.8
0.1
0.1
1,707.1
4,426.2
-
-
-
4,426.2
8,450.0
-
-
-
8,450.0
103,222.4
6,099.8
-
-
109,322.2
20,158.8
-
203.6
3.1
20,365.5
1,683.7
137.1
-
-
1,820.8
14,043.2
9.8
-
-
14,053.0
228
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS Items
Guarantees/letters of credit/indemnity issued by related parties1
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total guarantees/letters of credit/indemnity issued by related
parties
Swaps/forward contracts (notional amount)
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total swaps/forward contracts (notional amount)
Unfunded risk participation
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total unfunded risk participation
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
4,432.1
-
-
-
4,155.1
-
-
-
4,432.1
4,155.1
935,892.4
-
-
-
935,892.4
1,415.7
-
-
-
1,415.7
853,591.5
-
-
-
853,591.5
3,562.2
-
-
-
3,562.2
1.
2.
3.
Maximum balance is determined based on comparison of the total outstanding balances at each quarter end during the
financial year.
Insignificant amount.
Excludes mark-to-market on outstanding derivative transactions.
VI. Letters of comfort
The Bank has issued letters of comfort on behalf of its banking subsidiary ICICI Bank UK PLC to Financial
Services Authority, UK (now split into two separate regulatory authorities, the Prudential Regulation Authority
and the Financial Conduct Authority) to confirm that the Bank intends to financially support ICICI Bank UK PLC
in ensuring that it meets all of its financial obligations as they fall due.
The Bank has issued an undertaking on behalf of ICICI Securities Inc. for Singapore dollar 10.0 million (March 31,
2018: Singapore dollar 10.0 million) (equivalent to ` 510.4 million at March 31, 2019 and ` 498.2 million at
March 31, 2018) to the Monetary Authority of Singapore (MAS) and has executed six indemnity agreements
including one issued during the year on behalf of ICICI Bank Canada to its independent directors for a sum
not exceeding Canadian dollar 2.5 million each, aggregating to Canadian dollar 15.0 million (March 31, 2018:
Canadian dollar 17.5 million) (equivalent to ` 773.1 million at March 31, 2019 and ` 886.4 million at March 31,
2018). The aggregate amount of ` 1,283.5 million at March 31, 2019 (March 31, 2018: ` 1,384.6 million) is
included in the contingent liabilities.
The letters of comfort in the nature of letters of awareness that were outstanding at March 31, 2019 issued by
the Bank on behalf of its subsidiaries in respect of their borrowings made or proposed to be made, aggregated
to ` 7,060.0 million (March 31, 2018: ` 12,363.0 million).
In addition to the above, the Bank has also issued letters of comfort in the nature of letters of awareness on
behalf of its subsidiaries for other incidental business purposes. These letters of awareness are in the nature of
factual statements or confirmation of facts and do not create any financial impact on the Bank.
229
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
47. Details of amount transferred to The Depositor Education and Awareness Fund (the Fund) of RBI
The following table sets forth, for the periods indicated, the movement in amount transferred to the Fund.
Particulars
Opening balance
Add: Amounts transferred during the year
Less: Amounts reimbursed by the Fund towards claims during the year
Closing balance
Year ended
March 31, 2019
6,654.6
1,776.7
(100.6)
8,330.7
` in million
Year ended
March 31, 2018
4,841.2
1,906.2
(92.8)
6,654.6
48. Small and micro enterprises
The following table sets forth, for the periods indicated, details relating to enterprises covered under the Micro,
Small and Medium Enterprises Development (MSMED) Act, 2006.
Sr.
No.
Particulars
1.
2.
3.
4.
5.
The Principal amount and the interest due thereon
remaining unpaid to any supplier
The amount of interest paid by the buyer in terms of
Section 16, along with the amount of the payment made
to the supplier beyond the due date
The amount of interest due and payable for the period
of delay in making payment (which have been paid but
beyond the due date during the year) but without adding
the interest specified under MSMED Act, 2006
The amount of interest accrued and remaining unpaid
The amount of further interest remaining due and payable
even in the succeeding years, until such date when the
interest dues as above are actually paid to the small
enterprise, for the purpose of disallowed as a deductible
expenditure under Section 23
1.
Represents insignificant amount.
At March 31, 2019
Principal
Interest
At March 31, 2018
Principal
Interest
` in million
-
-
-
-
-
-
N.A.
N.A.
0.3
0.3
N.A.
N.A.
-
-
0.5
0.5
N.A.
0.01
N.A.
-
49. 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, 2019 was ` 10.0
million (year ended March 31, 2018: ` 627.2 million).
RBI through an order dated February 25, 2019, imposed a monetary penalty of ` 10.0 million on the Bank for delay
in compliance with RBI’s directives on “Time-bound implementation & strengthening of SWIFT related controls”.
50. Disclosure on Remuneration
Compensation Policy and practices
(A) Qualitative Disclosures
a)
Information relating to the bodies that oversee remuneration.
• Name, composition and mandate of the main body overseeing remuneration
The Board Governance, Remuneration and Nomination Committee (BGRNC/Committee) is the body
which oversees the remuneration aspects. The functions of the Committee include recommending
appointments of Directors to the Board, identifying persons who are qualified to become Directors
and who may be appointed in senior management in accordance with the criteria laid down and
recommending to the Board their appointment and removal, formulate a criteria for the evaluation of
the performance of the wholetime/independent Directors and the Board and to extend or continue
230
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
the term of appointment of independent Director on the basis of the report of performance evaluation
of independent Directors, recommending to the Board a policy relating to the remuneration for
the Directors, Key Managerial Personnel and other employees, recommending to the Board the
remuneration (including performance bonus and perquisites) to wholetime Directors (WTDs) and
senior management, commission and fee payable to non-executive Directors subject to applicable
regulations, approving the policy for and quantum of bonus payable to members of the staff
including senior management and key managerial personnel, formulating the criteria for determining
qualifications, positive attributes and independence of a Director, framing policy on Board diversity,
framing guidelines for the Employee Stock Option Scheme (ESOS) and decide on the grant of the
Bank’s stock options to employees and WTDs of the Bank and its subsidiary companies.
External consultants whose advice has been sought, the body by which they were commissioned,
and in what areas of the remuneration process
The Bank employed the services of a reputed consulting firm for market benchmarking in the area of
compensation, including executive compensation.
Scope of the Bank’s remuneration policy (e.g. by regions, business lines), including the extent to
which it is applicable to foreign subsidiaries and branches
The Compensation Policy of the Bank, as last reviewed by the BGRNC and the Board at their meeting
held on May 7, 2018, pursuant to the guidelines issued by RBI, covers all employees of the Bank,
including those in overseas branches of the Bank. In addition to the Bank’s Compensation Policy
guidelines, the overseas branches also adhere to relevant local regulations.
Type of employees covered and number of such employees
All employees of the Bank are governed by the Compensation Policy. The total number of permanent
employees of the Bank at March 31, 2019 was 84,922.
•
•
•
b)
Information relating to the design and structure of remuneration processes.
•
Key features and objectives of remuneration policy
The Bank has under the guidance of the Board and the BGRNC, followed compensation practices
intended to drive meritocracy within the framework of prudent risk management. This approach has
been incorporated in the Compensation Policy, the key elements of which are given below.
o
o
Effective governance of compensation: The BGRNC has oversight over compensation.
The Committee defines Key Performance Indicators (KPIs) for WTDs and equivalent positions
and the organisational performance norms for bonus based on the financial and strategic plan
approved by the Board. The KPIs include both quantitative and qualitative aspects. The BGRNC
assesses organisational performance as well as the individual performance for WTDs and
equivalent positions. Based on its assessment, it makes recommendations to the Board regarding
compensation for WTDs, senior management and equivalent positions and bonus for employees,
including senior management and key management personnel.
Alignment of compensation philosophy with prudent risk taking: The Bank seeks to achieve
a prudent mix of fixed and variable pay, with a higher proportion of variable pay at senior
levels and no guaranteed bonuses. Compensation is sought to be aligned to both financial
and non-financial indicators of performance including aspects like risk management and
customer service. In addition, the Bank has an employee stock option scheme aimed at aligning
compensation to long term performance through stock option grants that vest over a period of
time. Compensation of staff in financial and risk control functions is independent of the business
areas they oversee and depends on their performance assessment.
•
Whether the remuneration committee reviewed the firm’s remuneration policy during the past
year, and if so, an overview of any changes that were made
During the year ended March 31, 2019, the Bank’s Compensation Policy was reviewed by the
BGRNC and the Board at their meeting held on May 7, 2018. No changes were proposed in the
compensation policy.
231
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
c)
•
Discussion of how the Bank ensures that risk and compliance employees are remunerated
independently of the businesses they oversee
The compensation of staff engaged in control functions like Risk and Compliance depends on their
performance, which is based on achievement of the key results of their respective functions. Their goal
sheets do not include any business targets.
Description of the ways in which current and future risks are taken into account in the remuneration
processes.
•
into account when
implementing
Overview of the key risks that the Bank takes
remuneration measures
The Board approves the risk framework for the Bank and the business activities of the Bank are
undertaken within this framework to achieve the financial plan. The risk framework includes the
Bank’s risk appetite, limits framework and policies and procedures governing various types of risk.
KPIs of WTDs & equivalent positions, as well as employees, incorporate relevant risk management
related aspects. For example, in addition to performance targets in areas such as risk calibrated
core operating profit (profit before provisions and tax, excluding treasury income), performance
indicators include aspects such as the desired funding profile and asset quality. The BGRNC takes into
consideration all the above aspects while assessing organisational and individual performance and
making compensation-related recommendations to the Board.
Overview of the nature and type of key measures used to take account of these risks, including risk
difficult to measure
The annual performance targets and performance evaluation incorporate both qualitative and
quantitative aspects including asset quality, provisioning, increase in stable funding sources,
refinement/improvement of the risk management framework, effective management of stakeholder
relationships and mentoring key members of the top and senior management.
•
• Discussion of the ways in which these measures affect remuneration
Every year, the financial plan/targets are formulated in conjunction with a risk framework with limit
structures for various areas of risk/lines of business, within which the Bank operates to achieve the
financial plan. To ensure effective alignment of compensation with prudent risk taking, the BGRNC
takes into account adherence to the risk framework in conjunction with which the financial plan/targets
have been formulated. KPIs of WTDs and equivalent positions, as well as employees, incorporate
relevant risk management related aspects. For example, in addition to performance targets in areas
such as risk calibrated core operating profit, performance indicators include aspects such as the
desired funding profile and asset quality. The BGRNC takes into consideration all the above aspects
while assessing organisational and individual performance and making compensation-related
recommendations to the Board.
•
Discussion of how the nature and type of these measures have changed over the past year and
reasons for the changes, as well as the impact of changes on remuneration.
The nature and type of these measures have not changed over the past year and hence, there is no
impact on remuneration.
d)
Description of the ways in which the Bank seeks to link performance during a performance
measurement period with levels of remuneration
• Overview of main performance metrics for Bank, top level business lines and individuals
The main performance metrics include risk calibrated core operating profit (profit before provisions
and tax, excluding treasury income), asset quality metrics (such as additions to non-performing loans
and recoveries & upgrades), compliance with regulatory norms, refinement of risk management
processes and customer service. The specific metrics and weightages for various metrics vary with
the role and level of the individual.
232
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
•
•
Discussion of how amounts of individual remuneration are linked to the Bank-wide and
individual performance
The BGRNC takes into consideration above mentioned aspects while assessing performance and
making compensation-related recommendations to the Board regarding the performance assessment
of WTDs and equivalent positions. The performance assessment of individual employees is undertaken
based on achievements compared to their goal sheets, which incorporate various aspects/metrics
described earlier.
Discussion of the measures the Bank will in general implement to adjust remuneration in the
event that performance metrics are weak, including the Bank’s criteria for determining ‘weak’
performance metrics
The Bank’s Compensation Policy outlines the measures the Bank will implement in the event of a
reasonable evidence of deterioration in financial performance. Should such an event occur in the
manner outlined in the policy, the BGRNC may decide to apply malus on none, part or all of the
unvested deferred variable compensation.
Description of the ways in which the Bank seeks to adjust remuneration to take account of the longer
term performance
•
Discussion of the Bank’s policy on deferral and vesting of variable remuneration and, if the fraction
of variable remuneration that is deferred differs across employees or groups of employees, a
description of the factors that determine the fraction and their relative importance
The quantum of bonus for an employee does not exceed a certain percentage (as stipulated in the
compensation policy) of the total fixed pay in a year. Within this percentage, if the quantum of bonus
exceeds a predefined threshold percentage of the total fixed pay, a part of the bonus is deferred and
paid over a period. These thresholds for deferrals are same across employees.
•
Discussion of the Bank’s policy and criteria for adjusting deferred remuneration before vesting and
(if permitted by national law) after vesting through claw back arrangements
The deferred portion of variable pay is subject to malus, under which the Bank would prevent vesting
of all or part of the variable pay in the event of an enquiry determining gross negligence, breach of
integrity or in the event of a reasonable evidence of deterioration in financial performance. In such
cases, variable pay already paid out may also be subjected to clawback arrangements, as applicable.
Description of the different forms of variable remuneration that the Bank utilises and the rationale for
using these different forms
•
Overview of the forms of variable remuneration offered. A discussion of the use of different forms
of variable remuneration and, if the mix of different forms of variable remuneration differs across
employees or group of employees, a description of the factors that determine the mix and their
relative importance
The Bank pays performance linked retention pay (PLRP) to its front-line staff and junior management
and performance bonus to its middle and senior management. PLRP aims to reward front line and
junior managers, mainly on the basis of skill maturity attained through experience and continuity
in role which is a key differentiator for customer service. The Bank also pays variable pay to sales
officers and relationship managers in wealth management roles while ensuring that such pay-outs are
in accordance with applicable regulatory requirements.
The Bank ensures higher proportion of variable pay at senior levels and lower variable pay for front-line
staff and junior management levels.
e)
f)
233
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
(B) Quantitative disclosures
The following table sets forth, for the period indicated, the details of quantitative disclosure for remuneration of
WTDs (including MD & CEO) and equivalent positions.
Particulars
Number of meetings held by the BGRNC
Remuneration paid to its members during the financial
year (sitting fees)
Number of employees who received a variable remuneration award
Number and total amount of sign-on awards made
Number and total amount of guaranteed bonuses awarded
Details of severance pay, in addition to accrued benefits
Breakdown of amount of remuneration awards for the financial year
Fixed1
Variable2
- Deferred
- Non-deferred
Share-linked instruments
Total amount of deferred remuneration paid out during the year
Total amount of outstanding deferred remuneration
Cash
Shares (nos.)
Shares-linked instruments3
Other forms
Total amount of outstanding deferred remuneration and retained
remuneration exposed to ex-post explicit and/or implicit adjustments
Total amount of reductions during the year due to ex-post
explicit adjustments4
Total amount of reductions during the year due to ex-post
implicit adjustments
` in million, except numbers
Year ended
March 31, 2018
7
Year ended
March 31, 2019
12
1.9
-
-
-
-
274.7
-
-
-
-
-
N.A.
-
6,260,597
-
-
-
-
0.3
4
-
-
-
222.7
-
-
-
4,526,500
6.1
N.A.
-
14,825,250
-
-
-
-
1.
2.
3.
4.
Fixed pay includes basic salary, supplementary allowances, superannuation, contribution to provident fund and gratuity fund
by the Bank. The amounts mentioned in the above table corresponds to the period of employment of WTDs/President in the
Bank during the year ended March 31, 2019.
For the years ended March 31, 2019 and March 31, 2018, variable and share-linked instruments represent amounts paid/
options awarded for the years ended March 31, 2018 and March 31, 2017 respectively, as per RBI approvals.
Includes stock options granted to MD & CEO and President during their employment with the group company.
Excludes ` 74.1 million variable pay to former MD & CEO for past years which has been directed for claw-back.
Payment of compensation in the form of profit related commission to the non-executive directors
The Board at its meeting held on September 16, 2015 and the shareholders at their meeting held on July 11, 2016
approved the payment of profit related commission of ` 1.0 million per annum to be paid to each non-executive
Director of the Bank (excluding government nominee and part-time Chairman) subject to the availability of net
profits at the end of each financial year.
The Bank accordingly recognised an amount of ` 5.8 million as profit related commission payable to the
non-executive Directors during the year ended March 31, 2019, subject to requisite approvals. During the year
ended March 31, 2019, the Bank paid ` 5.1 million as profit related commission payable to the non-executive
Directors for the year ended March 31, 2018.
234
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
51. Corporate Social Responsibility
The gross amount required to be spent by the Bank on Corporate Social Responsibility (CSR) related activities during
the year ended March 31, 2019 was ` 1,189.6 million (March 31, 2018: ` 1,702.0 million).
The following table sets forth, for the periods indicated, the amount spent by the Bank on CSR related activities.
Sr.
No.
Particulars
Construction/acquisition of any asset
1.
2. On purposes other than (1) above
` in million
Year ended March 31, 2019
Year ended March 31, 2018
In cash
-
787.2
Yet to be
paid in
cash
-
134.9
Total
In cash
-
922.1
-
1,361.6
Yet to be
paid in
cash
-
342.2
Total
-
1,703.8
1.
The Bank initiated a pan-India social awareness programme to be conducted beginning March 2019 till March 2020. The total
amount earmarked for the social awareness programme is ` 250.0 million. Since the project began towards the end of the year,
the amount could not be spent during the year. Accordingly, it was not included in the total CSR spends for the year ended
March 31, 2019.
The following table sets forth, for the periods indicated, the details of related party transactions pertaining to CSR
related activities.
Sr.
No.
1.
Related Party
ICICI Foundation
Total
Year ended
March 31, 2019
380.0
380.0
` in million
Year ended
March 31, 2018
560.0
560.0
The following table sets forth, for the periods indicated, the details of movement of amounts yet to be paid for CSR
related activities
Particulars
Opening balance
Provided during the year
Paid during the year
Closing balance
At
March 31, 2019
1,080.0
922.1
(1,728.4)
273.7
` in million
At
March 31, 2018
1,363.7
1,703.8
(1,987.5)
1,080.0
52. Disclosure of customer complaints
The following table sets forth, for the periods indicated, the movement of the outstanding number of complaints.
Complaints relating to the Bank’s customers on the Bank’s ATMs
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
1.
The above does not include complaints redressed within one working day.
Complaints relating to the Bank’s customers on other banks’ ATMs
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
1.
The above does not include complaints redressed within one working day.
Year ended
March 31, 2019
75
1,049
1,072
52
Year ended
March 31, 2018
29
2,356
2,310
75
Year ended
March 31, 2019
3,944
183,159
179,975
7,128
Year ended
March 31, 2018
1,763
124,361
122,180
3,944
235
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
ANNUAL REPORT 2018-19
Complaints relating to other than ATM transactions
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
1.
The above does not include complaints redressed within one working day.
Total complaints
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
Year ended
March 31, 2019
2,190
80,518
81,212
1,496
Year ended
March 31, 2018
2,480
110,626
110,916
2,190
Year ended
March 31, 2019
6,209
264,726
262,259
8,676
Year ended
March 31, 2018
4,272
237,343
235,406
6,209
1.
The above does not include complaints redressed within one working day.
The following table sets forth, for the periods indicated, the details of awards during the year.
Particulars
No. of unimplemented awards at the beginning of the year
No. of awards passed by the Banking Ombudsmen during the year
No. of awards implemented during the year
No. of unimplemented awards at the end of the year
Year ended
March 31, 2019
-
-
-
-
Year ended
March 31, 2018
-
-
-
-
53. Drawdown from reserves
The Bank has not drawn any amount from reserves during the year ended March 31, 2019 (year ended
March 31, 2018: Nil).
54. Investor Education and Protection Fund
The unclaimed dividend amount, due for transfer to the Investor Education and Protection Fund (IEPF) during the
year ended March 31, 2019, has been transferred without any delay.
Any unexpired demand drafts as on the date of transfer to IEPF get subsequently extinguished after the date of
expiry of the relevant instruments. The amounts of such extinguished drafts are credited back to the unclaimed
dividend account from time to time as per SEBI circular dated April 20, 2018 and are transferred to IEPF.
55. Comparative figures
Figures of the previous year have been re-grouped to conform to the current year presentation.
Signatures to Schedules 1 to 18
As per our Report of even date.
For and on behalf of the Board of Directors
For Walker Chandiok & Co LLP
Chartered Accountants
ICAI Firm Registration no.:
001076N/N500013
Khushroo B. Panthaky
Partner
Membership no.: 042423
Place: Mumbai
Date: May 6, 2019
236
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Vishakha Mulye
Executive Director
DIN-00203578
Sandeep Batra
President
Ajay Mittal
Chief Accountant
Vijay Chandok
Executive Director
DIN-01545262
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Group Chief Financial Officer
Ranganath Athreya
Company Secretary
FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS
INDEPENDENT AUDITORS’ REPORT
To the Members of
ICICI Bank Limited
1.
2.
3.
4.
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the accompanying consolidated financial statements of ICICI Bank Limited (‘the Bank’ or ‘the Holding
Company’), and its subsidiaries (the Holding Company and its subsidiaries together referred to as ‘the Group’) and its
associates, which comprise the Consolidated Balance Sheet as at 31 March 2019, the Consolidated Profit and Loss
Account, the Consolidated Cash Flow Statement for the year then ended, and a summary of the significant accounting
policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us and based on the
consideration of the reports of the other auditors on separate financial statements and on the other financial information
of the subsidiaries and associates, the aforesaid consolidated financial statements give the information required by
the section 29 of the Banking Regulation Act, 1949, as well as the Companies Act, 2013 (‘Act’) and circulars and
guidelines issued by the Reserve Bank of India, 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, including the Accounting Standards
prescribed under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014 (as amended), of
the consolidated state of affairs of the Group and its associates as at 31 March 2019, their consolidated profit and their
consolidated cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report. We are independent of the Bank, in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants of India (‘ICAI’), together with the ethical requirements that are
relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that
the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports
referred to in other matter paragraphs below, is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, and based on the consideration of the reports
of the other auditors on separate financial statements and on the other financial information of the subsidiaries and
associates, were of most significance in our audit of the consolidated financial statements of the current period.
These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
238
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
INDEPENDENT AUDITORS’ REPORT
5.
We have determined the matters described below to be the key audit matters to be communicated in our report.
a. Information Technology (‘IT’) systems and controls impacting financial reporting in relation to the Bank
(Refer chapter ‘Key risks impacting the Bank’s business’ under the Integrated Report of the Annual Report)
Key Audit Matter
How the key audit matter was addressed
The IT environment of the Bank is complex and
involves a large number of independent and inter-
dependent IT systems used in the operations of the
Bank for processing and recording a large volume of
transactions at numerous locations. As a result, there
is a high degree of reliance and dependency on such IT
systems for the financial reporting process of the Bank.
Appropriate IT general controls and application controls
are required to ensure that such IT systems are able to
process the data, as required, completely, accurately
and consistently for reliable financial reporting.
The accuracy and reliability of the financial reporting
process depends on the IT systems and the related
control environment, including:
IT general controls over user access management
and change management across applications,
networks, database, and operating systems;
IT automated application controls.
In assessing the integrity of the IT systems, we involved
our IT experts to obtain an understanding of the IT
infrastructure and IT systems relevant to the Bank’s
financial reporting process for evaluation and testing of
IT general controls and IT automated controls existing
in such IT systems.
Access rights were tested over applications, operating
systems, networks, and databases, which are relied upon
for financial reporting. We also assessed the operating
effectiveness of controls over granting, removal and
periodical review of access rights. We further tested
segregation of duties, including preventive controls to
ensure that access to change applications, the operating
system or databases in the production environment
were granted only to authorised personnel.
that were assessed under
IT
Other areas
control environment,
included password policies,
security configurations, and controls around change
management.
the
Due to the importance of the impact of the IT systems
and related control environment on the Bank’s financial
reporting process, we have identified testing of such IT
systems and related control environment as a key audit
matter for the current year audit.
We also evaluated the design and tested the operating
effectiveness of key automated controls within various
business processes. This included testing the integrity
of system interfaces, the completeness and accuracy of
data feeds, and automated calculations.
239
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
INDEPENDENT AUDITORS’ REPORT
b. Identification and provisioning for non-performing assets (‘NPAs’) in relation to the Bank
As at 31 March 2019, the Group has reported total loans and advances (net of provisions) of ` 6,469,617 million
(2018: ` 5,668,542 million) of which ` 5,866,466 million* (2018: ` 5,123,953 million*) relates to the Bank.
(Refer schedule 9)
* the amounts relating to the Bank are before inter company eliminations.
Key Audit Matter
How the key audit matter was addressed
The
for
identification of NPAs and provisioning
advances is made in accordance with the extant RBI
regulations or host country regulations, in the case of
international branches. Based on our risk assessment,
the following are significant in assessment of the NPA
provisions:
Recognition of defaults, in accordance with the
criteria set out in the RBI Prudential norms on
Income Recognition, Asset Classification and
Provisioning pertaining
(IRAC
norms) or in accordance with the host country
regulations, as applicable. Further, the Bank
is also required to apply its judgement to
determine the identification of NPAs by applying
certain qualitative aspects;
to Advances
The measurement of provision under RBI
guidelines
is dependent on the ageing of
overdue balances, secured/unsecured status
of advances, stress and liquidity concerns in
certain sectors, and valuation of collateral. The
provision on NPAs at certain overseas branches
requires estimation of amounts and timing of
expected future cash flows and exit values.
Considering the significance of the above matter to
the financial statements, the heightened regulatory
inspections, and significant auditor attention required,
we have identified this as a key audit matter for the
current year audit.
We tested the design and operating effectiveness of key
controls, including IT based controls, focusing on the
following:
Identification and classification of NPAs in line
with RBI IRAC norms and certain qualitative
aspects;
Periodic internal reviews of asset quality;
Assessment of adequacy of NPA provisions; and
Periodic valuation of collateral for NPAs.
To test the identification of loans with default events
and other triggers, we selected a sample of performing
loans and independently assessed as to whether there
was a need to classify such loans as NPAs.
With respect to provisions recognised towards NPAs,
we selected samples based on high risk industry
sectors, such as shipping, rigs, power, mining, and oil
and gas exploration. For the samples selected, we re-
performed the provision calculations and compared
our outcome to that prepared by the management and
challenged various assumptions and judgements which
were used by the management.
We assessed the appropriateness and adequacy of
disclosures against the relevant accounting standards
and RBI requirements relating to NPAs.
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ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS INDEPENDENT AUDITORS’ REPORT
c. Provisions for litigation and taxation and contingent liabilities in relation to the Bank
As at 31 March 2019, the Group has reported ‘Claims against the Group not acknowledged as debts’ of
` 65,030 million (2018: ` 72,344 million), of which the following relate to the Bank:
Particulars
Legal cases
Taxes
Total claims against the Bank not acknowledged as debts
(` in millions)
Included under contingent liabilities
At 31.03.2018
647
62,013
62,660
At 31.03.2019
1,096
53,913
55,009
(Refer schedule 12)
Key Audit Matter
As at 31 March 2019, the Bank has ongoing legal and tax
cases with varied degrees of complexities. This indicates
that a significant degree of management judgement
is involved in determining the appropriateness of
provisions and related disclosures.
judgement
is needed
in
Significant management
determining whether an obligation exists and whether
a provision should be recognised as at the reporting
date, in accordance with the accounting criteria set
under Accounting Standard 29 - Provisions, Contingent
Liabilities and Contingent Assets (‘AS 29’), or whether it
needs to be disclosed as a contingent liability. Further,
significant judgements are also involved in measuring
such obligations, the most significant of which are:
Assessment of liability: Judgement is involved
in the determination of whether an outflow
in respect of identified material matters are
probable and can be estimated reliably;
Adequacy of provisions: The appropriateness
of assumptions and judgements used in the
estimation of significant provisions; and
Adequacy of disclosures of provision
for
liabilities and charges, and contingent liabilities.
Considering the significance of the above matter to the
financial statements, and significant auditor attention
required to test such estimates, we have identified this
as a key audit matter for current year audit.
How the key audit matter was addressed
Our audit procedures included, but were not limited to,
the following:
We tested the design and operating effectiveness of the
Bank’s key controls over the estimation, monitoring and
disclosure of provisions and contingent liabilities.
For significant
legal matters, we sought external
confirmations and also reviewed the confirmations
obtained by the management from external legal
counsels and corroborated with management’s
documented conclusions on
the assessment of
outstanding litigations against the Bank.
In respect of taxation matters, we involved our tax
specialists to gain an understanding of the current
status of the outstanding tax litigations, including
understanding of various orders/notices received by
the Bank and the management’s grounds of appeals
before the relevant appellate authorities, and critically
evaluated
the
likelihood of the liability devolving upon the Bank, in
accordance with the principles of AS 29.
the management’s assessment of
For the significant provisions made, we understood,
assessed and challenged the adequacy of provisions
recognised by the management. We also reviewed
the historical accuracy of the provisions recognised to
determine the efficacy of the process of estimation by
the management.
Further, we assessed whether the disclosures related
to significant litigations and taxation matters were fairly
presented.
241
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
INDEPENDENT AUDITORS’ REPORT
d. Valuation of derivatives in relation to the Bank
As at 31 March 2019, the Group has reported notional value of derivatives of ` 24,442,124 million (2018:
` 17,335,283 million), of which the following relate to the Bank:
Particulars
Notional value of derivatives
Included under
Contingent liabilities
(Refer schedule 12)
* the amounts relating to the Bank are before intercompany eliminations.
At 31.03.2019
17,566,162*
(` in millions)
At 31.03.2018
11,336,607*
Key Audit Matter
Derivatives are valued through models with external
inputs. The derivatives portfolio of the Bank primarily
includes transactions which are carried out on behalf
of its clients (and are covered on a back-to-back basis)
and transactions to hedge the Bank’s interest and foreign
currency risk.
A significant degree of management judgement is
involved in the application of valuation techniques
through which the value of the Bank’s derivatives
is determined. The financial statement risk arises
particularly with respect to complex valuation models,
parameters, and inputs that are used in determining fair
values.
Considering the significance of the above matter to the
financial statements, significant management estimates
and judgements, and auditor attention required to test
such estimates and judgements, we have identified this
as a key audit matter for current year audit.
How our audit addressed the key audit matter
Our audit procedures included, but were not limited to,
the following:
We included our valuation experts as a part of our audit
team to obtain an understanding, evaluate the design,
and test the operating effectiveness of the key controls
over the valuation processes, including:
independent price verification performed by a
management expert; and
model governance and validation.
On a sample basis, our valuation experts performed
an independent reassessment of the valuation of
derivatives, to ensure compliance with the relevant
RBI regulations, reasonableness of
the valuation
methodology and the inputs used.
We also challenged the appropriateness of significant
models and methodologies used in valuation.
242
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
INDEPENDENT AUDITORS’ REPORT
6.
The joint auditors, Walker Chandiok & Co. LLP, Chartered Accountants, and B S R & Co LLP, Chartered Accountants,
of ICICI Prudential Life Insurance Company Limited, vide their audit report dated 24 April 2019, have expressed an
unmodified opinion on the financial statements. Based on consideration of their report, we have determined the
matters described below to be the key audit matters to be communicated in our report:
a. Information technology systems relating to ICICI Prudential Life Insurance Company Limited
Key Audit Matter
How the key audit matter was addressed
The Company’s key financial accounting and reporting
processes are highly dependent on
information
systems including automated controls in systems,
such that there exists a risk that gaps in the IT control
environment could result in the financial accounting
and reporting records being misstated. The Company
uses several systems for its overall financial reporting.
‘Information technology systems’ has been identified
as a key audit matter because of the high level
automation, significant number of systems being
used by the management and the complexity of the IT
architecture.
IT specialists were involved to:
Understand General IT Control (GITC) i.e. Access
Controls, Program/System Change, Program
Development, Computer Operations (i.e. Job
Processing, Data/System Backup
Incident
Management) over key financial accounting
and reporting systems, and supporting control
systems (referred to as in-scope systems);
Test the General IT Controls for design and
operating effectiveness for the audit period over
the in-scope systems;
Understand IT application controls covering:
•
•
user access and roles, segregation of duties;
and
key interfaces, reports, reconciliations and
system processing.
Test the IT application controls for design and
operating effectiveness for the audit period;
Test the controls to determine whether these
controls remained unchanged during the audit
period or were changed following the standard
change management process;
Understand
IT
i.e. operating
infrastructure
systems and databases supporting the in-scope
systems; and
Test controls over the IT infrastructure covering
user access (including privilege users), data
center and system change (e.g. patches).
243
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
INDEPENDENT AUDITORS’ REPORT
b. Valuation of Investments relating to ICICI Prudential Life Insurance Company Limited
As at 31 March 2019, the Group has reported total investments (net of provisions) of ` 3,982,008 million
(2018: ` 3,722,077 million) of which ` 1,571,731 million* (2018: ` 1,370,489 million*) relates to ICICI Prudential
Life Insurance Company Limited.
(Refer schedule 8)
* the amounts relating to ICICI Prudential Life Insurance Company Limited are before intercompany eliminations.
investment portfolio
Key Audit Matter
The Company’s
represents
substantial portion of the Company’s total assets as
at March 31, 2019 which are valued in accordance
with accounting policy framed as per the extent of the
regulatory guidelines.
Investment in Non-linked and shareholders’ portfolio
All debt securities are valued at amortised cost and
investment property is valued in accordance with
Company’s valuation policy. The listed equity shares,
preference shares, liquid mutual fund and Equity
Exchange Traded Funds (ETF) investments are valued
using quoted prices as per stock exchanges. These
investments are tested for impairment in accordance
with the Company’s impairment policy.
Investment in unit linked portfolio
Government securities are valued at prices provided
by CRISIL. Other debt securities are valued on a yield
to maturity basis, by using spread over the benchmark
rate. The listed equity shares, preference shares, liquid
mutual fund and ETF investments are valued using
quoted prices as per stock exchanges.
The valuation of these investments was considered to
be one of the areas which required significant auditor
attention and was one of the matter of most significance
in the financial statements due to the materiality of total
value of investments to the financial statements.
How the key audit matter was addressed
Key audit procedures for this area included, but were
not limited to the following:
Tested the design, implementation and operating
effectiveness of key controls over the valuation
process, including the Company’s review and
approval of the estimates and assumptions used
for the valuation including key authorisation and
data input controls;
Assessed appropriateness of
the valuation
methodologies with reference to Investment
Regulations issued by Insurance Regulatory and
Development Authority of India (‘IRDAI’) and
Company’s own valuation policy;
For listed equity shares, preference shares, liquid
mutual fund and ETF investments, performed
independent price checks using external quoted
prices and by agreeing the observable inputs
that were used in the Company’s valuation
techniques to external data; and
For other investments, critically evaluated the
valuation assessment and resulting conclusions
by the Company in order to determine the
reasonableness of the valuations recorded. This
included an evaluation of the methodology and
assumptions used in the valuation with reference
to the Company’s valuation policy.
244
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS INDEPENDENT AUDITORS’ REPORT
7.
The joint auditors of ICICI Lombard General Insurance Company Limited, vide their audit report dated 18 April 2019,
have expressed an unmodified opinion on the financial statements. Based on consideration of their report, we have
determined the matter described below to be a key audit matter to be communicated in our report:
a. Accounting for motor insurance policies relating to ICICI Lombard General Insurance Company Limited
As at 31 March 2019, the Group has reported ‘Premium and other operating income from insurance business’ of
` 420,939 million (2018: ` 369,369 million) of which ` 50,356 million* (2018: ` 41,422 million*) relates to premium
earned by ICICI Lombard General Insurance Company Limited on motor insurance policies.
(Refer schedule 14)
* the amounts relating to ICICI Lombard General Insurance Company Limited are before intercompany eliminations.
Key Audit Matter
During the current year, the Company has introduced
Long Term Motor Insurance Policies providing multi-
year coverage which constitutes significant portion of
the business segment. The Company has designed
the scheme of accounting entries for recognition of
revenue, advance premium, commissions and related
indirect taxes based on relevant regulations.
This implementation was a major one-time activity
during the year which was prone to interpretation
errors/omissions.
How the key audit matter was addressed
Key audit procedures for this area included, but were
not limited to the following:
Obtained a thorough understanding of the
the
reviewed
regulatory prescriptions and
process adopted by the Company.
Validated the accounting policies adopted with
the relevant regulatory prescriptions.
Verified the premium allocation for sample
transactions over policy periods.
Verified the actual scheme of entries for sample
period with the designed scheme.
Verified the overall reconciliation of balance
sheet amounts with related feed systems.
Information other than the Consolidated Financial Statements and Auditor’s Report thereon
The Holding Company’s Board of Directors are responsible for the other information. The other information comprises
the information included in the Management’s Discussion and Analysis, Directors’ Report, including annexures to the
Directors’ Report, but does not include the consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that
fact. We have nothing to report in this regard.
245
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
INDEPENDENT AUDITORS’ REPORT
8.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
The Holding Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with
respect to the preparation of these consolidated financial statements that give a true and fair view of the consolidated
financial position, consolidated financial performance and consolidated cash flows of the Bank, in accordance with the
accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133
of the Act read with rule 7 of the Companies (Accounts) Rules, 2014 (as amended) and provisions of section 29 of the
Banking Regulation Act, 1949 and circulars and guidelines issued by Reserve Bank of India (‘RBI’) from time to time.
Further, in terms of the Act, the respective Board of Directors of the companies and the trustees of the trusts included in
the Group and of its associates covered under the Act, are responsible for maintenance of adequate accounting records
in accordance with the provisions of the Act, for safeguarding of the assets of the Group and of its associates and for
preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a
true and fair view and are free from material misstatement, whether due to fraud or error. These financial statements
have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding
Company, as aforesaid.
9.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting, unless management either intends to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
10.
The respective Board of Directors of the companies and the trustees of trusts included in the Group are also responsible
for overseeing the Group’s financial reporting process.
11.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
12.
As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
•
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for explaining
our opinion on whether the Holding Company has adequate internal financial controls system in place and the
operating effectiveness of such controls.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
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ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
INDEPENDENT AUDITORS’ REPORT
•
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the ability of the Group and its associates to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group or its associates to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
13.
14.
15.
16.
17.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report, unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Other Matters
We did not audit the financial statements of 3 international branches of the Bank included in the consolidated financial
statements, whose financial statements reflects total assets of ` 657,940 million as at 31 March 2019, and total revenue
and net cash outflows of ` 22,507 million and ` 5,168 million respectively for the year ended on that date, as considered
in the consolidated financial statements. The financial statements of these branches have been audited by the branch
auditors whose reports have been furnished to us by the management, and our opinion on the consolidated financial
statements, in so far as it relates to the amounts and disclosures included in respect of such branches, is based solely
on the report of their branch auditors.
We did not audit the financial statements of 14 subsidiaries, whose financial statements reflect total assets of ` 1,260,437
million as at 31 March 2019 and total revenue and net cash inflows of ` 194,388 million and ` 8,156 million, respectively,
for the year ended on that date. The consolidated financial statements also include the Group’s share of net profit of
` 767 million for the year ended 31 March 2019, in respect of 1 associate, whose financial statements have not been
audited by us. These financial statements have been audited by other auditors, whose reports have been furnished
to us by the management and our opinion on the consolidated financial statements, in so far as it relates to the
amounts and disclosures included in respect of these subsidiaries and associate, is based solely on the reports of the
other auditors.
18.
The consolidated financial statements also include the Group’s share of net profit of ` 36 million for the year ended 31
March 2019, in respect of 6 associates, whose financial statements/information have not been audited. These financial
statements/information have been furnished to us by the management and our report on the consolidated financial
statements, in so far as it relates to the amounts and disclosures included in respect of these associates, is based solely
on such management certified financial statements/information. In our opinion and according to the information and
explanation given to us by the management, these financial statements/information are not material to the Group.
247
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
INDEPENDENT AUDITORS’ REPORT
19.
20.
21.
22.
23.
24.
25.
We have jointly audited with another auditor, the financial statements of one subsidiary, whose financial statements
reflect total assets of ` 1,629,322 million as at 31 March 2019 and total revenue and net cash inflows of ` 366,993 million
and ` 8,084 million, respectively, for the year ended on that date. For the purpose of our opinion on the consolidated
financial statements, we have relied upon the work of such other auditors, to the extent of work performed by them.
The joint auditors, Walker Chandiok & Co. LLP, Chartered Accountants, and B S R & Co LLP, Chartered Accountants,
of ICICI Prudential Life Insurance Company Limited, vide their audit report dated 24 April 2019, have expressed an
unmodified opinion and have reported in the ‘Other Matter’ section that, ‘The actuarial valuation of liabilities for life
policies in force and policies in respect of which premium has been discontinued but liability exists as at 31 March 2019
is the responsibility of the Company’s Appointed Actuary (the ‘Appointed Actuary’). The actuarial valuation of these
liabilities for life policies in force and for policies in respect of which premium has been discontinued but liability exists
as at 31 March 2019, has been duly certified by the Appointed Actuary and in her opinion, the assumptions for such
valuation are in accordance with the guidelines and norms issued by the IRDAI and the Institute of Actuaries of India, in
concurrence with the Authority’. The joint auditors have relied upon the Appointed Actuary’s certificate in this regard
for forming their opinion on the valuation of liabilities for life policies in force and for policies in respect of which
premium has been discontinued but liability exists on the financial statements of the Company.
The joint auditors of ICICI Lombard General Insurance Company Limited, vide their audit report dated 18 April 2019, have
expressed an unmodified opinion and have reported in the ‘Other Matter’ section that, ‘The actuarial valuation of liabilities
in respect of Incurred But Not Reported (‘IBNR’), Incurred But Not Enough Reported (‘IBNER’) and Premium Deficiency
Reserve (the ‘PDR’) is the responsibility of the Company’s Appointed Actuary (the ‘Appointed Actuary’). The actuarial
valuation of these liabilities, that are estimated using statistical methods as at 31 March 2019, has been duly certified by
the Appointed Actuary and in his opinion, the assumptions considered by him for such valuation, are in accordance with
the guidelines and norms issued by the IRDAI and the Institute of Actuaries of India, in concurrence with IRDAI’. The joint
auditors have relied upon the Appointed Actuary’s certificate in this regard for forming their opinion on the valuation of
liabilities for outstanding claims reserves and the PDR contained in the financial statements of the Company.
The consolidated financial statements of the Bank for the year ended 31 March 2018 were audited by the predecessor
auditors, who have expressed an unmodified opinion on those financial statements, vide their audit report
dated 7 May 2018.
Our opinion above on the consolidated financial statements, and our report on Other Legal and Regulatory requirements
below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of
the other auditors and the financial statements/financial information certified by the management.
Report on Other Legal and Regulatory Requirements
The Consolidated Balance Sheet and the Profit and Loss Account have been drawn up in accordance with the provisions
of section 29 of the Banking Regulation Act, 1949 and section 133 of the Act, read with rule 7 of the Companies (Rules),
2014 (as amended).
As required by section 197(16) of the Act in relation to managerial remuneration and based on the information and
explanations give to us and on the consideration of the reports of the other auditors, referred to in other matter
paragraphs, on separate financial statements of the subsidiaries, and associates, we report that in cases where the
remuneration was paid, the subsidiary companies, and associate company covered under the Act paid remuneration
to their respective directors during the year in accordance with the provisions of and the limits laid down under section
197 read with Schedule V to the Act, except in the case of one subsidiary, ICICI Securities Primary Dealership Limited,
where the auditors have reported that the remuneration of the MD & CEO of ` 36.29 million (including perquisite value
of stock options of ICICI Bank Limited, exercised by the MD & CEO during FY 2019) has exceeded the limits prescribed
under section 197 of the Act by ` 8.79 million and is pending the approval of the shareholders’ of ICICI Securities
Primary Dealership Limited. Further, since the Holding Company is a banking company, as defined under Banking
Regulation Act, 1949, the reporting under section 197(16) in relation to whether the remuneration paid by the Bank is
in accordance with the provisions of section 197 of the Act and whether any excess remuneration has been paid in
accordance with the aforesaid section, is not applicable.
248
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
INDEPENDENT AUDITORS’ REPORT
26.
Further, as required by section 143 (3) of the Act, based on our audit and on the consideration of the reports of the other
auditors on separate financial statements and other financial information of the subsidiaries and associates, we report,
to the extent applicable, that:
a)
b)
we have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit of the aforesaid consolidated financial statements;
In our opinion, proper books of account as required by law, relating to the presentation of the aforesaid consolidated
financial statements have been kept so far as it appears from our examination of those books and reports of the
other auditors;
c)
the consolidated financial statements dealt with by this report are in agreement with the books of account;
d)
e)
f)
g)
in our opinion, the aforesaid consolidated financial statements comply with Accounting Standards prescribed
under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended), to the
extent they are not inconsistent with the accounting policies prescribed by RBI;
on the basis of the written representations received from the directors of the Holding Company as on 31
March 2019 and taken on record by the Board of Directors of the Holding Company and the reports of statutory
auditors of its subsidiary companies and associate companies incorporated in India, none of the directors of the
Group companies and associate companies are disqualified as on 31 March 2019, from being appointed as a
director in terms of section 164(2) of the Act;
with respect to the adequacy of the internal financial controls over financial reporting of the Holding Company, its
subsidiary companies and associate companies covered under the Act, and the operating effectiveness of such
controls, refer to our separate report in ‘Annexure A’; and
with respect to the other matters to be included in the Auditor’s Report, in accordance with rule 11 of the
Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and
according to the explanations given to us:
i.
ii.
iii.
iv.
the consolidated financial statements disclose the impact of pending litigations on the consolidated financial
position of the Group and its associates, as detailed in schedule 18.7 to the consolidated financial statements;
provisions have been made in these consolidated financial statements, as required under the applicable law
or accounting standards, for material foreseeable losses, and on long-term contracts, including derivative
contracts, as detailed in schedule 18.7 to the consolidated financial statements;
there has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Holding Company, its subsidiary companies, and associate companies during the
year ended 31 March 2019;
the disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable
for the period from 8 November 2016 to 30 December 2016, which are not relevant to these consolidated
financial statements. Hence, reporting under this clause is not applicable.
.
Place: Mumbai
Date: 06 May 2019
For Walker Chandiok & Co LLP
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Khushroo B. Panthaky
Partner
Membership No.: 042423
249
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
ANNEXURE A to the Independent Auditor’s Report of even date to the members of ICICI
Bank Limited on the consolidated financial statements for the year ended 31 March 2019
1.
2.
3.
4.
5.
6.
Independent Auditor’s Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of
the Companies Act, 2013 (‘the Act’)
In conjunction with our audit of the consolidated financial statements of ICICI Bank Limited (‘the Holding Company’ or
‘the Bank’) and its subsidiaries (the Holding Company and its subsidiaries, together referred to as ‘the Group’), and its
associates as at and for the year ended 31 March 2019, we have audited the internal financial controls over financial
reporting (‘IFCoFR’) of the Holding Company, its subsidiary companies, and its associate companies, which are companies
covered under the Act, as at that date.
Management’s Responsibility for Internal Financial Controls
The respective Board of Directors of the Holding Company, its subsidiary companies, and its associate companies, which
are companies covered under the Act, are responsible for establishing and maintaining internal financial controls based
on the internal control over financial reporting criteria established by the Group considering the essential components
of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting, issued
by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the IFCoFR of the Holding Company, its subsidiary companies, and its
associate companies, as aforesaid, based on our audit. We conducted our audit in accordance with the Standards on
Auditing issued by the Institute of Chartered Accountants of India (‘ICAI’) and deemed to be prescribed under Section
143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting (‘the Guidance Note’) issued by the ICAI. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate IFCoFR were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and their operating
effectiveness. Our audit of IFCoFR includes obtaining an understanding of IFCoFR, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of
their reports referred to in the Other Matters paragraph, below are sufficient and appropriate to provide a basis for our
audit opinion on the IFCoFR of the Holding Company, its subsidiary companies, and its associate companies as aforesaid.
Meaning of Internal Financial Controls over Financial Reporting
An enitity’s IFCoFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes, in accordance with generally accepted accounting
principles. An entity’s IFCoFR include those policies and procedures that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the entity; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements, in
accordance with generally accepted accounting principles, and that receipts and expenditures of the entity are being
made only in accordance with authorisations of management and directors of the entity; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the entity’s assets
that could have a material effect on the financial statements.
7.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Owing to the inherent limitations of IFCoFR, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation
of the IFCoFR to future periods are subject to the risk that the IFCoFR may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
250
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
ANNEXURE A (Contd.)
8.
9.
10.
11.
12.
13.
14.
Opinion
In our opinion and based on the consideration of the reports of the other auditors on IFCoFR of the subsidiary companies,
and associate companies, the Holding Company, its subsidiary companies, and its associate companies, which are
companies covered under the Act, have in all material respects, adequate internal financial controls over financial reporting
and such controls were operating effectively as at 31 March 2019, based on the internal control over financial reporting
criteria established by the Group, considering the essential components of internal control stated in the Guidance Note
issued by the ICAI.
Other matters
The auditors of ICICI Prudential Life Insurance Company Limited have reported, ‘The actuarial valuation of liabilities
for life policies in force and policies where premium is discontinued but liability exists as at 31 March 2019 has been
certified by the Appointed Actuary as per the IRDA Financial Statements Regulations, and has been relied upon by us,
as mentioned in para “Other Matters” of our audit report on the standalone financial statements for the year ended 31
March 2019. Accordingly, our opinion on the internal financial controls over financial reporting does not include reporting
on the operating effectiveness of the management’s internal controls over the valuation and accuracy of the aforesaid
actuarial valuation’.
The auditors of ICICI Lombard General Insurance Company Limited have reported, ‘The actuarial valuation of liabilities
in respect of Incurred But Not Reported (the “IBNR”), Incurred But Not Enough Reported (the “IBNER”) and Premium
Deficiency Reserve (the “PDR”) is the responsibility of the Company’s Appointed Actuary (the “Appointed Actuary”).
The actuarial valuation of these liabilities, that are estimated using statistical methods as at 31 March 2019 has been
duly certified by the Appointed Actuary and in his opinion, the assumptions considered by him for such valuation are in
accordance with the guidelines and norms issued by the IRDAI and the Institute of Actuaries of India in concurrence with
the IRDAI. The said actuarial valuations of liabilities for outstanding claims reserves and the PDR have been relied upon
by us as mentioned in “Other Matters” paragraph in our Audit Report on the standalone financial statements for the year
ended 31 March 2019. Accordingly, our opinion on the internal financial controls over financial reporting does not include
reporting on the adequacy and operating effectiveness of the internal financial controls over the valuation and accuracy
of the aforesaid actuarial liabilities’.
We did not audit the IFCoFR in so far as it relates to 11 subsidiaries, which are companies covered under the Act, whose
financial statements reflect total assets of ` 652,286 million as at 31 March 2019 and total revenue and net cash inflows of
` 172,552 million and ` 19,603 million, respectively for the year ended on that date.
We have jointly audited with another auditor, the IFCoFR of a subsidiary, whose financial statements reflect total assets of
` 1,629,322 million as at 31 March 2019 and total revenue and net cash inflows of ` 366,993 million and ` 8,084 million,
respectively, for the year ended on that date.
The consolidated financial statements also include the Group’s share of net profit of ` 767 million for the year
ended 31 March 2019, in respect of 1 associate, which is a company covered under the Act, whose IFCoFR has not
been audited by us.
Our report on the adequacy and operating effectiveness of the IFCoFR for the Holding Company, its subsidiary companies,
and its associate companies, as aforesaid, under Section 143(3)(i) of the Act in so far as it relates to such subsidiary
companies, and associate company, is based solely on the reports of the auditors of such companies.
15.
Our opinion is not modified in respect of the above matters with respect to our reliance on the work done by and on the
reports of the other auditors.
Place: Mumbai
Date: 06 May 2019
For Walker Chandiok & Co LLP
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Khushroo B. Panthaky
Partner
Membership No.: 042423
251
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
BALANCE SHEET
at March 31, 2019
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CONSOLIDATED BALANCE SHEET
at March 31, 2019
Schedule
At
31.03.2019
` in ‘000s
At
31.03.2018
CAPITAL AND LIABILITIES
Capital
Employees stock options outstanding
Reserves and surplus
Minority interest
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
TOTAL ASSETS
1
2
2A
3
4
5
6
7
8
9
10
11
Contingent liabilities
Bills for collection
Significant accounting policies and notes to accounts
17 & 18
The Schedules referred to above form an integral part of the Consolidated Balance Sheet.
12
12,894,598
46,755
1,129,592,715
65,805,358
6,813,169,361
2,103,241,208
1,523,787,542
739,401,370
12,387,938,907
12,858,100
55,699
1,093,383,172
60,081,860
5,857,961,125
2,294,018,266
1,314,884,251
609,567,929
11,242,810,402
380,662,784
493,246,169
3,982,007,553
6,469,616,813
96,604,227
965,801,361
12,387,938,907
332,726,026
557,265,307
3,722,076,772
5,668,542,198
94,650,053
867,550,046
11,242,810,402
26,120,719,378
495,791,861
18,910,358,283
287,054,059
As per our Report of even date.
For and on behalf of the Board of Directors
For Walker Chandiok & Co LLP Girish Chandra Chaturvedi
Chartered Accountants
ICAI Firm Registration no.:
001076N/N500013
Chairman
DIN-00110996
Khushroo B. Panthaky
Partner
Membership no.: 042423
Vishakha Mulye
Executive Director
DIN-00203578
Uday M. Chitale
Director
DIN-00043268
Vijay Chandok
Executive Director
DIN-01545262
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Anup Bagchi
Executive Director
DIN-00105962
Place: Mumbai
Date: May 6, 2019
Sandeep Batra
President
Ajay Mittal
Chief Accountant
Rakesh Jha
Group Chief Financial Officer
Ranganath Athreya
Company Secretary
252
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS FINANCIAL STATEMENTS OF ICICI BANK LIMITED
PROFIT AND LOSS ACCOUNT
for the year ended March 31, 2019
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended March 31, 2019
I.
INCOME
Interest earned
Other income
TOTAL INCOME
II. EXPENDITURE
Interest expended
Operating expenses
Provisions and contingencies (refer note 18.7)
TOTAL EXPENDITURE
III. PROFIT/(LOSS)
Net profit for the year
Less: Minority interest
Net profit after minority interest
Profit brought forward
TOTAL PROFIT/(LOSS)
IV. APPROPRIATIONS/TRANSFERS
Transfer to Statutory Reserve
Transfer to Reserve Fund
Transfer to Capital Reserve
Transfer to Capital Redemption Reserve
Transfer to/(from) Investment Reserve Account
Transfer to/(from) Investment Fluctuation Reserve
Transfer to Special Reserve
Transfer to/(from) Revenue and other reserves
Dividend paid during the year
Corporate dividend tax paid during the year
Balance carried over to balance sheet
TOTAL
Significant accounting policies and notes to accounts
Earnings per share (refer note 18.1)
Schedule
Year ended
31.03.2019
` in ‘000s
Year ended
31.03.2018
13
14
15
16
719,816,540
593,248,453
1,313,064,993
621,623,505
568,067,510
1,189,691,015
391,775,414
642,588,800
221,809,173
1,256,173,387
342,620,468
557,556,292
198,518,808
1,098,695,568
56,891,606
14,349,219
42,542,387
219,991,613
262,534,000
8,409,000
7,569
280,000
3,500,000
-
12,692,000
5,352,000
245,223
9,651,292
1,933,076
220,463,840
262,534,000
17 & 18
90,995,447
13,873,582
77,121,865
215,045,471
292,167,336
16,944,000
10,541
25,654,600
-
-
-
6,206,000
6,454,526
14,574,649
2,331,407
219,991,613
292,167,336
12.02
11.89
2.00
Basic (`)
Diluted (`)
Face value per share (`)
The Schedules referred to above form an integral part of the Consolidated Profit and Loss Account.
6.61
6.53
2.00
As per our Report of even date.
For and on behalf of the Board of Directors
For Walker Chandiok & Co LLP Girish Chandra Chaturvedi
Chartered Accountants
ICAI Firm Registration no.:
001076N/N500013
Chairman
DIN-00110996
Khushroo B. Panthaky
Partner
Membership no.: 042423
Vishakha Mulye
Executive Director
DIN-00203578
Uday M. Chitale
Director
DIN-00043268
Vijay Chandok
Executive Director
DIN-01545262
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Anup Bagchi
Executive Director
DIN-00105962
Place: Mumbai
Date: May 6, 2019
Sandeep Batra
President
Ajay Mittal
Chief Accountant
Rakesh Jha
Group Chief Financial Officer
Ranganath Athreya
Company Secretary
253
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CONSOLIDATED CASH FLOW STATEMENT
for the year ended March 31, 2019
Cash flow from/(used in) operating activities
Profit before taxes
Adjustments for:
Depreciation and amortisation
Net (appreciation)/depreciation on investments1
Provision in respect of non-performing and other assets
General provision for standard assets
Provision for contingencies & others
(Profit)/loss on sale of fixed assets
Employees stock options grants
Adjustments for:
(Increase)/decrease in investments
(Increase)/decrease in advances
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 (i)+(ii)+(iii)
Cash flow from/(used in) investing activities
Purchase of fixed assets
Proceeds from sale of fixed assets
(Purchase)/sale of held to maturity securities
Net cash flow from/(used in) investing activities
Cash flow from/(used in) financing activities
Proceeds from issue of share capital (including ESOPs)
Proceeds from long-term borrowings
Repayment of long-term borrowings
Net proceeds/(repayment) of short-term borrowings
Dividend and dividend tax paid
Net cash flow from/(used in) financing activities
Effect of exchange fluctuation on translation reserve
Net increase/(decrease) in cash and cash equivalents
(A) + (B) + (C) + (D)
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
1.
Year ended
31.03.2019
` in ‘000s
Year ended
31.03.2018
59,733,445
95,911,046
10,453,730
57,889
176,113,934
2,414,407
22,498,491
22,012
79,246
271,373,154
33,463,685
(972,978,394)
955,208,236
(31,691,451)
314,897,698
298,899,774
(83,562,401)
486,710,527
10,390,761
(21,343,283)
147,516,047
2,960,374
9,763,944
(29,027)
131,128
245,300,990
(147,368,884)
(687,502,223)
732,088,482
(80,169,309)
175,987,900
(6,964,034)
(44,507,633)
193,829,323
(11,481,488)
468,831
(290,459,494)
(301,472,151)
(10,421,438)
265,828
(495,578,927)
(505,734,537)
3,486,300
262,388,237
(304,162,713)
(149,997,897)
(11,688,270)
(199,974,343)
(1,346,413)
3,939,495
430,554,398
(404,339,556)
383,766,528
(17,161,116)
396,759,749
228,112
(i)
(ii)
(iii)
(A)
(B)
(C)
(D)
85,082,647
804,908,686
889,991,333
For the year ended March 31, 2019, includes gain on sale of a part of equity investment in a subsidiary, ICICI Prudential Life Insurance
Company Limited, through an offer for sale on stock exchanges (year ended March 31, 2018: includes gain on sale of a part of equity
investment in the subsidiaries, ICICI Lombard General Insurance Company Limited and ICICI Securities Limited, through initial public offers).
Cash and cash equivalents include cash in hand, balances with RBI, balances with other banks and money at call and short notice.
(16,082,380)
889,991,333
873,908,953
2.
As per our Report of even date.
For and on behalf of the Board of Directors
For Walker Chandiok & Co LLP Girish Chandra Chaturvedi
Chartered Accountants
ICAI Firm Registration no.:
001076N/N500013
Chairman
DIN-00110996
Khushroo B. Panthaky
Partner
Membership no.: 042423
Place: Mumbai
Date: May 6, 2019
254
Vishakha Mulye
Executive Director
DIN-00203578
Sandeep Batra
President
Ajay Mittal
Chief Accountant
Uday M. Chitale
Director
DIN-00043268
Vijay Chandok
Executive Director
DIN-01545262
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Group Chief Financial Officer
Ranganath Athreya
Company Secretary
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Balance Sheet
SCHEDULE 1 - CAPITAL
Authorised capital
12,500,000,000 equity shares of ` 2 each1 (March 31, 2018: 10,000,000,000
equity shares of ` 2 each, 15,000,000 shares of ` 100 each2 and 350 preference
shares of ` 10.0 million each)
Equity share capital
Issued, subscribed and paid-up capital
6,427,990,776 equity shares of ` 2 each (March 31, 2018: 5,824,476,135
equity shares)
Add: 18,248,8773 equity shares of ` 2 each (March 31, 2018: 603,514,6413,4
equity shares) issued during the period
At
31.03.2019
` in ‘000s
At
31.03.2018
25,000,000
25,000,000
12,855,981
11,648,952
36,498
12,892,479
2,119
12,894,598
1,207,029
12,855,981
2,119
12,858,100
Add: Forfeited equity shares5
TOTAL CAPITAL
1.
2.
Pursuant to the approval of shareholders, the Bank has re-classified its authorised share capital during the year ended March 31, 2019.
These shares were 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.
Represents equity shares issued pursuant to exercise of employee stock options during the year ended March 31, 2019 (year ended March
31, 2018: 20,530,097 equity shares).
For the year ended March 31, 2018, includes 582,984,544 equity shares issued as bonus shares pursuant to approval by the shareholders
of the Bank through postal ballot on June 12, 2017.
On account of forfeiture of 266,089 equity shares of ` 10 each.
3.
4.
5.
SCHEDULE 2 - RESERVES AND SURPLUS
I.
Statutory reserve
Opening balance
Additions during the year
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 year1
Deductions during the year2
Closing balance
IV.
Investment reserve account
Opening balance
Additions during the year
Deductions during the year
Closing balance
At
31.03.2019
` in ‘000s
At
31.03.2018
228,968,519
8,409,000
-
237,377,519
94,387,700
5,352,000
-
99,739,700
326,802,474
3,530,743
-
330,333,217
-
-
-
-
212,024,519
16,944,000
-
228,968,519
88,181,700
6,206,000
-
94,387,700
323,932,017
4,036,426
(1,165,969)
326,802,474
-
-
-
-
255
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
V.
Investment fluctuation reserve
Opening balance
Additions during the year3
Deductions during the year
Closing balance
VI. Unrealised investment reserve4
Opening balance
Additions during the year
Deductions during the year
Closing balance
VII. Capital reserve
Opening balance
Additions during the year5
Deductions during the year
Closing balance6
VIII. Capital redemption reserve (refer note 18.6)
Opening balance
Additions during the year7
Deductions during the year
Closing balance
IX. Foreign currency translation reserve
Opening balance
Additions during the year
Deductions during the year
Closing balance
X. Revaluation reserve (refer note 18.16)
Opening balance
Additions during the year8
Deductions during the year9
Closing balance
XI. Reserve fund
Opening balance
Additions during the year10
Deductions during the year
Closing balance
XII. Revenue and other reserves
Opening balance
Additions during the year
Deductions during the year11
Closing balance12,13,14
XIII. Balance in profit and loss account15,16
TOTAL RESERVES AND SURPLUS
1.
2.
Includes ` 3,451.5 million (March 31, 2018: ` 3,905.3 million) on exercise of employee stock options.
Represents amount utilised on account of issuance of bonus shares during the year ended March 31, 2018.
256
At
31.03.2019
-
12,692,000
-
12,692,000
187,932
11,439
(84,598)
114,773
` in ‘000s
At
31.03.2018
-
-
-
-
160,445
36,647
(9,160)
187,932
128,505,616
280,000
-
128,785,616
102,851,016
25,654,600
-
128,505,616
-
3,500,000
-
3,500,000
19,351,116
308,432
(1,654,845)
18,004,703
30,276,392
1,038,994
(615,400)
30,699,986
66,399
7,569
-
73,968
-
-
-
-
19,123,004
241,842
(13,730)
19,351,116
30,651,113
263,895
(638,616)
30,276,392
55,858
10,541
-
66,399
50,099,364
970,707
(2,999,924)
48,070,147
220,201,086
1,129,592,715
42,581,179
8,533,984
(1,015,799)
50,099,364
214,737,660
1,093,383,172
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS 3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Represents an amount transferred by the Bank to Investment Fluctuation Reserve (IFR) on net profit on sale of AFS and HFT investments
during the year. As per the RBI circular, from the year ended March 31, 2019, an amount not less than the lower of net profit on sale of AFS
and HFT category investments during the year or net profit for the year less mandatory appropriations is required to be transferred to IFR,
until the amount of IFR is at least 2% of the HFT and AFS portfolio.
Represents unrealised profit/(loss) pertaining to the investments of venture capital funds.
Includes appropriations made by the Bank for profit on sale of investments in held-to-maturity category, net of taxes and transfer to
Statutory Reserve and profit on sale of land and buildings, net of taxes and transfer to Statutory Reserve.
Includes capital reserve on consolidation amounting to ` 79.1 million (March 31, 2018: ` 79.1 million).
Represents amount transferred by the Bank from accumulated profit on account of Redeemable Non-Cumulative Preference Shares (350
RNCPS) of ` 10.0 million each redeemed at par on April 20, 2018. The Bank has created Capital redemption reserve, as required under the
Companies Act, 2013, out of surplus profits available for previous years.
Represents gain on revaluation of premises carried out by the Bank and ICICI Home Finance Company Limited.
Represents amount transferred from Revaluation Reserve to General Reserve on account of incremental depreciation charge on revaluation
amounting to ` 589.5 million (year ended March 31, 2018: ` 572.4 million) and revaluation surplus on assets sold amounting to ` 25.9
million (year ended March 31, 2018: ` 66.2 million) for the year ended March 31, 2019.
Includes appropriations made to Reserve Fund in accordance with regulations applicable to Sri Lanka branch.
Includes ` 2,209.4 million towards reduction in fair value change account of ICICI Lombard General Insurance Company Limited (March 31,
2018: addition of ` 316.7 million).
Includes unrealised profit/(loss), net of tax, of ` (536.3) million (March 31, 2018: ` (530.3) million) pertaining to the investments in the
available-for-sale category of ICICI Bank UK PLC.
Includes restricted reserve of ` 3.8 million (March 31, 2018: ` 4.4 million) primarily relating to lapsed contracts of the life insurance subsidiary.
Includes debenture redemption reserve amounting to ` 135.5 million (March 31, 2018: ` 58.1 million) of ICICI Lombard General Insurance
Company Limited.
During the year ended March 31, 2018, the Bank made provision amounting to ` 5,254.0 million for frauds on non-retail accounts through
reserves and surplus, as permitted by RBI. During the year ended March 31, 2019, the entire provision has been recognised in profit and
loss account and equivalent debit has been reversed in reserves and surplus as required by RBI.
Includes impact of ` 263.0 million (equivalent to CAD 5.1 million) on account of adoption of International Financial Reporting Standards
(IFRS) 9– Financial instruments by ICICI Bank Canada. Refer note 18.19 - Adoption of IFRS 9 by ICICI Bank Canada.
SCHEDULE 2A - MINORITY INTEREST
Opening minority interest
Subsequent increase/(decrease) during the year
CLOSING MINORITY INTEREST
SCHEDULE 3 - DEPOSITS
A.
I.
Demand deposits
i) From banks
ii) From others
Savings bank deposits
II.
III. Term deposits
i) From banks
ii) From others
TOTAL DEPOSITS
B.
Deposits of branches in India
I.
II. Deposits of branches/subsidiaries outside India
TOTAL DEPOSITS
At
31.03.2019
60,081,860
5,723,498
65,805,358
At
31.03.2019
` in ‘000s
At
31.03.2018
48,653,128
11,428,732
60,081,860
` in ‘000s
At
31.03.2018
74,141,205
893,908,957
2,355,305,786
65,794,398
847,859,874
2,092,910,102
165,000,950
3,324,812,463
6,813,169,361
115,526,501
2,735,870,250
5,857,961,125
6,447,910,340
365,259,021
6,813,169,361
5,552,574,768
305,386,357
5,857,961,125
257
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
SCHEDULE 4 - BORROWINGS
I. Borrowings in India
Reserve Bank of India
i)
ii) Other banks
iii) Other institutions and agencies
a) Government of India
b) Financial institutions
Borrowings in the form of
a) Deposits
b) Commercial paper
c) Bonds and debentures (excluding subordinated debt)
iv)
v) Application money-bonds
vi) Capital instruments
a)
Innovative Perpetual Debt Instruments (IPDI)
(qualifying as additional Tier 1 capital)
b) Hybrid debt capital instruments issued as bonds/debentures
At
31.03.2019
` in ‘000s
At
31.03.2018
66,551,500
98,446,218
141,737,000
82,624,079
-
279,488,963
-
298,463,118
10,506,425
19,095,340
220,533,206
-
2,313,944
12,901,469
252,991,640
-
101,200,000
94,800,000
(qualifying as Tier 2 capital)
33,800,000
84,035,112
c) Redeemable Non-Cumulative Preference Shares (RNCPS)
(350 RNCPS of ` 10.0 million each issued to preference share
holders of erstwhile ICICI Limited on amalgamation, redeemed at
par on April 20, 2018)
d) Unsecured redeemable debentures/bonds
(subordinated debt included in Tier 2 capital)
TOTAL BORROWINGS IN INDIA
II. Borrowings outside India
i)
Capital instruments
Unsecured redeemable debentures/bonds
(subordinated debt included in Tier 2 capital)
ii)
Bonds and notes
iii) Other borrowings
TOTAL BORROWINGS OUTSIDE INDIA
TOTAL BORROWINGS
1.
437,325,520
730,234,379
1,177,321,797
2,294,018,266
Secured borrowings in I and II above amount to ` 158,484.7 million (March 31, 2018: ` 167,214.3 million) other than the borrowings
under collateralised borrowing and lending obligation, market repurchase transactions (including tri-party repo) with banks and financial
institutions and transactions under liquidity adjustment facility and marginal standing facility.
443,701,483
671,805,278
1,130,952,416
2,103,241,208
-
3,500,000
142,667,140
143,330,107
972,288,792
1,116,696,469
15,445,655
9,761,898
At
31.03.2019
86,191,837
717,556
36,648,114
336,952,875
31,496,087
247,394,901
739,401,370
` in ‘000s
At
31.03.2018
73,070,858
976,360
35,896,541
279,328,231
28,572,331
191,723,608
609,567,929
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
Bills payable
I.
Inter-office adjustments (net)
II.
III.
Interest accrued
IV. Sundry creditors
V. General provision for standard assets
VI. Others (including provisions)1,2
TOTAL OTHER LIABILITIES AND PROVISIONS
1.
2.
258
Includes specific provision for standard loans of the Bank amounting to ` 4,769.0 million (March 31, 2018: ` 7,967.1 million).
Includes corporate dividend tax payable amounting to ` 128.3 million (March 31, 2018: ` 381.8 million).
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK
OF INDIA
Cash in hand (including foreign currency notes)
I.
Balances with Reserve Bank of India in current accounts
II.
TOTAL CASH AND BALANCES WITH RESERVE BANK OF INDIA
SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL
AND SHORT NOTICE
I.
In India
i)
Balances with banks
a)
b)
In current accounts
In other deposit accounts
ii) Money at call and short notice
a) With banks
b) With other institutions
TOTAL
II. Outside India
In current accounts
i)
ii)
In other deposit accounts
iii) Money at call and short notice
TOTAL
TOTAL BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
At
31.03.2019
` in ‘000s
At
31.03.2018
89,113,817
291,548,967
380,662,784
At
31.03.2019
82,118,828
250,607,198
332,726,026
` in ‘000s
At
31.03.2018
4,526,342
27,100,732
3,592,062
23,227,230
89,457,750
25,216,743
146,301,567
162,722,416
48,959,266
135,262,920
346,944,602
493,246,169
190,613,750
5,783,189
223,216,231
200,772,076
43,495,469
89,781,531
334,049,076
557,265,307
259
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
At
31.03.2019
` in ‘000s
At
31.03.2018
1,876,580,127
-
133,554,527
391,443,021
1,109,458,136
1,803,209,154
-
127,550,060
339,631,755
975,019,684
348,419,946
3,859,455,757
372,350,812
3,617,761,465
62,208,341
60,343,455
122,551,796
3,982,007,553
55,945,624
48,369,683
104,315,307
3,722,076,772
3,888,123,653
28,667,896
3,859,455,757
3,631,283,280
13,521,815
3,617,761,465
SCHEDULE 8 - INVESTMENTS
I.
Investments in India [net of provisions]
i)
Government securities
ii) Other approved securities
iii) Shares (includes equity and preference shares)1
iv) Debentures and bonds
v) 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 and other related investments)
TOTAL INVESTMENTS IN INDIA
II.
Investments outside India [net of provisions]
i)
ii) Others (equity shares, bonds and certificate of deposits)
Government securities
TOTAL INVESTMENTS OUTSIDE INDIA
TOTAL INVESTMENTS
B.
A.
Investments in India
Gross value of investments2
Less: Aggregate of provision/depreciation/(appreciation)
Net investments
Investments outside India
Gross value of investments
Less: Aggregate of provision/depreciation/(appreciation)
Net investments
TOTAL INVESTMENTS
1.
111,536,033
7,220,726
104,315,307
3,722,076,772
Includes cost of investment in associates amounting to ` 7,293.5 million (March 31, 2018: ` 4,981.0 million), goodwill on consolidation of
associates amounting to ` 163.1 million (March 31, 2018: ` 58.1 million).
Includes net appreciation amounting to ` 110,501.1 million (March 31, 2018: ` 100,750.7 million) on investments held to cover linked
liabilities of life insurance business.
124,604,590
2,052,794
122,551,796
3,982,007,553
2.
260
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
SCHEDULE 9 - ADVANCES [net of provisions]
A.
Bills purchased and discounted1
Cash credits, overdrafts and loans repayable on demand
i)
ii)
iii) Term loans
TOTAL ADVANCES
Secured by tangible assets (includes advances against book debts)
Covered by bank/government guarantees
B.
i)
ii)
iii) Unsecured
TOTAL ADVANCES
I.
C.
Advances in India
Priority sector
i)
ii)
Public sector
iii) Banks
iv) Others
TOTAL ADVANCES IN INDIA
II. Advances outside India
i)
Due from banks
ii) Due from others
Bills purchased and discounted
a)
b) Syndicated and term loans
c) Others
TOTAL ADVANCES OUTSIDE INDIA
TOTAL ADVANCES
1.
Net of bills re-discounted amounting to Nil (March 31, 2018: Nil).
At
31.03.2019
` in ‘000s
At
31.03.2018
367,577,735
1,471,378,348
4,630,660,730
6,469,616,813
298,198,152
1,312,537,092
4,057,806,954
5,668,542,198
4,640,335,848
116,401,740
1,712,879,225
6,469,616,813
4,224,797,621
83,969,085
1,359,775,492
5,668,542,198
1,696,365,965
146,431,801
3,253,967
3,526,902,944
5,372,954,677
929,701,682
197,704,530
777,335
3,449,858,940
4,578,042,487
22,387,781
19,294,596
166,989,637
558,394,839
348,889,879
1,096,662,136
6,469,616,813
103,993,215
626,140,089
341,071,811
1,090,499,711
5,668,542,198
261
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
SCHEDULE 10 - FIXED ASSETS
I.
Premises
Gross block
At cost at March 31 of preceding year
Additions during the year1
Deductions during the year
Closing balance
Less: Depreciation to date2
Net block3
II. Other fixed assets (including furniture and fixtures)
Gross block
At cost at March 31 of preceding year
Additions during the year
Deductions during the year
Closing balance
Less: Depreciation to date4
Net block
III. Assets given on lease
At
31.03.2019
` in ‘000s
At
31.03.2018
89,546,213
2,896,928
(801,842)
91,641,299
(18,131,632)
73,509,667
88,093,455
3,498,313
(2,045,555)
89,546,213
(16,523,586)
73,022,627
71,014,065
9,171,004
(7,222,207)
72,962,862
(52,282,900)
20,679,962
63,839,400
8,946,032
(1,771,367)
71,014,065
(51,801,248)
19,212,817
Gross block
At cost at March 31 of preceding year
Additions during the year
Deductions during the year
Closing balance
Less: Depreciation to date, accumulated lease adjustment and provisions5
Net block
16,904,628
-
(189,999)
16,714,629
(14,300,020)
2,414,609
94,650,053
Includes revaluation gain amounting to ` 1,039.0 million (March 31, 2018: ` 263.9 million) on account of revaluation carried out by the Bank
and its housing finance subsidiary.
Includes depreciation charge amounting to ` 2,096.6 million for the year ended March 31, 2019 (year ended March 31, 2018: ` 2,003.5
million), including depreciation charge on account of revaluation of ` 589.5 million for the year ended March 31, 2019 (year ended March
31, 2018: ` 576.8 million).
Includes assets of ` 22.2 million of the Bank (March 31, 2018: ` 37.4 million) which are held for sale.
Includes depreciation charge amounting to ` 7,361.8 million for the year ended March 31, 2019 (year ended March 31, 2018: ` 7,217.9 million).
The depreciation charge/ lease adjustment/ provisions is an insignificant amount for the year ended March 31, 2019 (year ended March 31,
2018: insignificant amount).
16,714,629
-
-
16,714,629
(14,300,031)
2,414,598
96,604,227
TOTAL FIXED ASSETS
1.
2.
3.
4.
5.
262
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
At
31.03.2019
` in ‘000s
At
31.03.2018
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
V. Non-banking assets acquired in satisfaction of claims1,2
VI. Advance for capital assets
VII. Deposits
VIII. Deferred tax asset (net) (refer note 18.10)
IX. Deposits in Rural Infrastructure and Development Fund
X. Others3,4
TOTAL OTHER ASSETS
1.
-
89,296,089
66,655,117
130,676
19,748,594
1,892,601
18,025,278
78,182,968
269,249,912
324,368,811
867,550,046
During the year ended March 31, 2019, the Bank has not acquired any assets (year ended March 31, 2018: ` 952.6 million) in satisfaction
of claims under debt-asset swap transactions. No assets were sold during the year ended March 31, 2019 (year ended March 31, 2018:
` 279.1 million).
Represents balance net of provision held by the Bank amounting to ` 22,147.3 million (March 31, 2018: ` 13,184.2 million).
For the year ended March 31, 2018, includes receivable amounting to ` 3,988.7 million pertaining to a non-performing loan sold during the
year ended March 31, 2018, which was received by the Bank on April 2, 2018.
Includes goodwill on consolidation amounting to ` 1,097.0 million (March 31, 2018: ` 1,117.5 million).
-
98,043,710
101,872,667
66,696
10,040,166
2,219,891
17,221,877
109,372,947
292,545,621
334,417,786
965,801,361
2.
3.
4.
Claims against the Group not acknowledged as debts
Liability for partly paid investments
SCHEDULE 12 - CONTINGENT LIABILITIES
I.
II.
III. Liability on account of outstanding forward exchange contracts1
IV. Guarantees given on behalf of constituents
a)
In India
b) Outside India
Interest rate swaps, currency options and interest rate futures1
V. Acceptances, endorsements and other obligations
VI. Currency swaps1
VII.
VIII. Other items for which the Group is contingently liable
TOTAL CONTINGENT LIABILITIES
1.
2.
At
31.03.2019
` in ‘000s
At
31.03.2018
65,029,948
12,455
4,889,593,918
72,343,905
12,455
4,461,284,115
851,493,764
218,124,554
433,839,126
426,896,157
19,125,634,207
110,095,249
26,120,719,378
746,315,695
207,158,854
409,964,977
417,771,418
12,456,227,130
139,279,734
18,910,358,283
Represents notional amount.
There has been a Supreme Court (SC) judgement dated February 28, 2019, relating to components of salary structure that need to be taken
into account while computing the contribution to provident fund under the Employees Provident Fund (EPF) Act. There are interpretative
aspects related to the Judgement including the effective date of application. The Bank will continue to assess any further developments in
this matter for the implications on financial statements, if any.
263
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Balance Sheet (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Profit and Loss Account
SCHEDULE 13 - INTEREST EARNED
Interest/discount on advances/bills
I.
Income on investments
II.
Interest on balances with Reserve Bank of India and other inter-bank funds
III.
IV. Others1,2
TOTAL INTEREST EARNED
1.
2.
Includes interest on income tax refunds amounting to ` 4,904.1 million (March 31, 2018: ` 2,802.2 million).
Includes interest and amortisation of premium on non-trading interest rate swaps and foreign currency swaps.
Year ended
31.03.2019
508,848,307
181,022,872
9,271,072
20,674,289
719,816,540
` in ‘000s
Year ended
31.03.2018
432,528,240
161,256,201
8,104,078
19,734,986
621,623,505
Year ended
31.03.2019
` in ‘000s
Year ended
31.03.2018
SCHEDULE 14 - OTHER INCOME
Commission, exchange and brokerage
I.
Profit/(loss) on sale of investments (net)1
II.
III. Profit/(loss) on revaluation of investments (net)
IV. Profit/(loss) on sale of land, buildings and other assets (net)2
V.
Profit/(loss) on exchange/derivative transactions (net)
VI. Premium and other operating income from insurance business
VII. Miscellaneous income (including lease income)3
TOTAL OTHER INCOME
1.
112,628,543
72,499,841
(4,429,497)
29,027
15,856,263
369,369,032
2,114,301
568,067,510
For the year ended March 31, 2019, includes gain on sale of a part of equity investment in a subsidiary, ICICI Prudential Life Insurance
Company Limited, through an offer for sale on stock exchanges (year ended March 31, 2018: includes gain on sale of a part of equity
investment in the subsidiaries, ICICI Lombard General Insurance Company Limited and ICICI Securities Limited, through initial public offers
(IPO). Refer note 18.14 - Sale of equity shareholding in subsidiaries.
Includes profit/(loss) on sale of assets given on lease.
Includes share of profit/(loss) from associates of ` 803.2 million (March 31, 2018: ` 515.2 million).
126,056,742
24,897,889
1,079,594
(22,012)
17,837,857
420,938,652
2,459,731
593,248,453
2.
3.
Interest on deposits
Interest on Reserve Bank of India/inter-bank borrowings
SCHEDULE 15 - INTEREST EXPENDED
I.
II.
III. Others (including interest on borrowings of erstwhile ICICI Limited)
TOTAL INTEREST EXPENDED
Year ended
31.03.2019
269,951,782
24,717,716
97,105,916
391,775,414
` in ‘000s
Year ended
31.03.2018
237,396,889
15,506,754
89,716,825
342,620,468
264
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Payments to and provisions for employees
Rent, taxes and lighting1
Printing and stationery
Advertisement and publicity
Depreciation on property
SCHEDULE 16 - OPERATING EXPENSES
I.
II.
III.
IV.
V.
VI. Depreciation (including lease equalisation) on leased assets
VII. Directors' fees, allowances and expenses
VIII. Auditors' fees and expenses
IX.
X.
XI. Repairs and maintenance
XII.
XIII. Direct marketing agency expenses
XIV. Claims and benefits paid pertaining to insurance business
XV. Other expenses pertaining to insurance business2
XVI. Other expenditure3
TOTAL OPERATING EXPENSES
1.
2.
Law charges
Postages, courier, telephones, etc.
Insurance
Year ended
31.03.2019
94,252,552
14,347,677
2,392,372
23,542,134
9,458,399
13
117,683
294,854
2,120,159
5,601,896
17,785,647
5,898,349
19,569,165
77,540,597
314,145,809
55,521,494
642,588,800
` in ‘000s
Year ended
31.03.2018
83,335,270
13,090,545
2,077,493
12,479,424
9,221,415
12
90,476
258,748
1,604,643
5,207,606
17,203,371
5,031,155
17,714,553
65,636,309
270,737,611
53,867,661
557,556,292
3.
Includes lease expense amounting to ` 11,425.5 million (March 31, 2018: ` 10,990.8 million).
Includes commission expenses and reserves for actuarial liabilities (including the investible portion of the premium on the unit-
linked policies).
During the year ended March 31, 2019, in accordance with the directions of Securities and Exchange Board of India (SEBI) with respect
to certain investments by schemes of ICICI Prudential Mutual Fund (the Schemes), ICICI Prudential Asset Management Company Limited
(IPAMC) has paid ` 1,094.5 million to the Schemes and their investors. Further, IPAMC has settled the proceedings on this matter with SEBI
and paid an amount of ` 9.0 million towards settlement terms.
265
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Profit and Loss Account (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of Consolidated Accounts
SCHEDULE 17
SIGNIFICANT ACCOUNTING POLICIES
Overview
ICICI Bank Limited, 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.
ICICI Bank Limited (the Bank), incorporated in Vadodara, India is a publicly held 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, through subsidiaries and other consolidating entities, more than
50.00% of the voting rights or where it exercises control, over the composition of board of directors/governing body,
are fully consolidated on a line-by-line basis in accordance with the provisions of AS 21 on ‘Consolidated Financial
Statements’. Investments in entities where the Bank 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 or entities
which operate under severe long-term restrictions that impair their ability to transfer funds to parent/investing entity.
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 of India
(IRDAI), National Housing Bank (NHB) from time to time and the Accounting Standards notified under Section 133 of
the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014, as applicable to relevant
companies and practices generally prevalent in the banking industry in India. In the case of the foreign subsidiaries,
Generally Accepted Accounting Principles as applicable to the respective 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 in the respective accounting policy.
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. Actual results
could differ from these estimates. The impact of any revision in these estimates is recognised prospectively from the
period of change.
The consolidated financial statements include the results of the following entities in addition to the Bank.
266
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
Name of the entity
ICICI Bank UK PLC
ICICI Bank Canada
ICICI Securities Limited
Country of
incorporation
United
Kingdom
Canada
India
Nature of
relationship
Subsidiary
Nature of business
Ownership
interest
Banking
Subsidiary
Banking
Subsidiary Securities broking and
ICICI Securities Holdings Inc.1
ICICI Securities Inc.1
ICICI Securities Primary Dealership Limited
USA
USA
India
Subsidiary
Subsidiary
Subsidiary
ICICI Venture Funds Management Company
Limited
India
Subsidiary
merchant banking
Holding company
Securities broking
Securities investment,
trading and
underwriting
Private equity/
venture capital fund
management
ICICI Home Finance Company Limited
ICICI Trusteeship Services Limited
8.
9.
10. ICICI Investment Management Company
Limited
11. ICICI International Limited
12. ICICI Prudential Pension Funds
Management Company Limited2
India
India
India
Mauritius
India
13. ICICI Prudential Life Insurance Company Limited India
14. ICICI Lombard General Insurance Company
Limited
15. ICICI Prudential Asset Management Company
Limited
16. ICICI Prudential Trust Limited
17. ICICI Strategic Investments Fund
18. I-Process Services (India) Private Limited3
India
India
India
India
India
100.00%
100.00%
79.22%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
52.87%
51.00%
50.80%
100.00%
19.00%
18.79%
Subsidiary
General insurance
55.87%
Subsidiary Housing finance
Subsidiary
Trusteeship services
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Asset management
Asset management
Pension fund
management
Life insurance
Subsidiary
Subsidiary
Consolidated
as per AS 21
Associate
Asset management
Trusteeship services
Venture capital fund
Services related to
back end operations
Education and training
in banking, finance and
insurance
Merchant acquiring
and servicing
Infrastructure finance
Venture capital fund
Venture capital fund
Software company
19. NIIT Institute of Finance Banking and Insurance
India
Associate
Training Limited3
20. ICICI Merchant Services Private Limited3
India
Associate
21. India Infradebt Limited3
22. India Advantage Fund-III3
23. India Advantage Fund-IV3
24. Arteria Technologies Private Limited3
1.
19.01%
42.33%
24.10%
47.14%
19.98%
ICICI Securities Holding Inc. is a wholly owned subsidiary of ICICI Securities Limited. ICICI Securities Inc. is a wholly owned subsidiary of
ICICI Securities Holding Inc.
ICICI Prudential Pension Funds Management Company Limited is a wholly owned subsidiary of ICICI Prudential Life Insurance
Company Limited.
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’.
Associate
Associate
Associate
Associate
India
India
India
India
2.
3.
Comm Trade Services Limited has not been consolidated under AS 21, since the investment is temporary in nature.
Falcon Tyres Limited, in which the Bank holds 26.39% equity shares has not been accounted as per equity method under
AS 23, since the investment is temporary in nature.
267
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS 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 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, offshore banking units, foreign subsidiaries) 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) relevant to the balance sheet date
and the resulting gains/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 relevant closing exchange rates notified by FEDAI at the balance sheet date and the resulting gains/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. Pursuant to RBI guideline, the Bank does not recognise the
cumulative/proportionate amount of such exchange differences as income or expenses, which relate to repatriation
of accumulated retained earnings from overseas operations.
The premium or discount arising on inception of forward exchange contracts in domestic operations 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 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 currency
are disclosed at the closing exchange rates notified by FEDAI relevant to the balance sheet date.
2. Revenue recognition
a)
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/ other applicable guidelines.
b)
Income from finance 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.
c)
Income on discounted instruments is recognised over the tenure of the instrument.
d) Dividend income 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 except in the case of foreign banking
subsidiaries, where it is amortised over the period of the loan.
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)
j)
Fund management and portfolio management fees are recognised on an accrual basis.
The annual/renewal fee on credit cards and debit cards are amortised on a straight line basis over one year.
k) All other fees are accounted for as and when they become due.
268
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
l)
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.
m)
Fees paid/received for priority sector lending certificates (PSLC) is amortised on straight- line basis over the
period of the certificate.
n)
o)
p)
Income from securities 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 for non-linked policies is recognised as income when due from policyholders. For unit
linked business, premium is recognised when the associated units are created. Premium on lapsed policies is
recognised as income when such policies are reinstated. Top-up premiums paid by unit linked policyholders’ are
considered as single premium and recognised as income when the associated units are created. Income from
unit linked policies, which includes fund management charges, policy administration charges, mortality charges
and other charges, if any, are recovered from the linked funds in accordance with the terms and conditions of
the policy and are recognised when due.
In case of general insurance business, premium including reinsurance accepted (net of Goods & Services Tax)
other than for long-term (with term more than one year) motor insurance policies for new cars and new two
wheelers sold on or after September 1, 2018 is recorded on receipt of complete information, for the policy
period at the commencement of risk. For crop insurance, the premium is accounted based on management
estimates that are progressively actualised on receipt of information. For installment cases, premium is recorded
on installment due dates. Reinstatement premium is recorded as and when such premiums are recovered.
Premium earned including reinstatement premium and re-insurance accepted 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.
Any subsequent revisions to premium as and when they occur are recognised over the remaining period of risk
or contract period, as applicable.
In case of long-term motor insurance policies for new cars and new two wheelers sold on or after September 1,
2018, premium received (net of Goods & Services Tax) for third party liability coverage is recognised equally
over the policy period at the commencement of risk on 1/n basis where ‘n’ denotes the term of the policy in
years and premium received for own damage coverage is recognised as per the annual premium allocation
determined at the inception of the policy in accordance with the product parameters filed with IRDAI, on receipt
of complete information. Reinstatement premium is recorded as and when such premiums are recovered.
Premium allocated for the year is recognised as income earned based on 1/365 method, on a gross basis.
Reinstatement premium is allocated on the same basis as the original premium over the balance term of the
policy. Any subsequent revisions to premium as and when they occur are recognised on the same basis as the
original premium over the balance term of the policy. Adjustments to premium income arising on cancellation
of policies are recognised in the period in which the policies are cancelled. Adjustments to premium income
for corrections to area covered under crop insurance are recognised in the period in which the information is
confirmed by the concerned government/nodal agency. Commission on reinsurance ceded is recognised as
income in the period of ceding the risk. Profit commission under reinsurance treaties, wherever applicable, is
recognised as income in the year of final determination of profits as confirmed by reinsurers and combined with
commission on reinsurance ceded.
q)
In case of life insurance business, reinsurance premium ceded is accounted in accordance with the terms of the
relevant treaty with the reinsurer. Profit commission on reinsurance ceded is netted off against premium ceded
on reinsurance.
r)
In case of general insurance business, insurance premium on ceding of the risk other than for long-term
motor insurance policies for new cars and new two wheelers sold on or after September 1, 2018 is recognised
269
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
simultaneously along with the insurance premium in accordance with reinsurance arrangements with
the reinsurers. In case of long-term motor insurance policies for new cars and new two-wheelers sold on
or after September 1, 2018, reinsurance premium is recognised on the insurance premium allocated for the
year simultaneously along with the recognition of the insurance premium in accordance with the reinsurance
arrangements with the reinsurers. Any subsequent revision to premium ceded is recognised in the period of
such revision. Adjustment to reinsurance premium arising on cancellation of policies is recognised in the period
in which the policies are cancelled. Adjustments to reinsurance premium for corrections to area covered under
crop insurance are recognised simultaneously along with related premium income.
s)
In the case of general insurance business, premium deficiency is recognised when the sum of expected claim
costs and related expenses and maintenance costs exceed the reserve for unexpired risks and is computed
at a segmental revenue account level. The expected claim cost is calculated and duly certified by the
Appointed Actuary.
3. Stock based compensation
The following entities within the group have granted stock options to their employees:
•
•
•
•
ICICI Bank Limited
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Securities Limited
The Employees Stock Option Scheme (the Scheme) of the Bank provides for grant of options on the Bank’s equity
shares 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. ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance
Company and ICICI Securities Limited have also formulated similar stock option schemes for their employees for
grant of equity shares of their respective companies.
The Group, except the overseas banking subsidiaries, 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 and amortised over the vesting period. The fair market
price is the latest closing price, immediately prior to the grant date, which is generally the date of the meeting of
the Board Governance, Remuneration & Nomination Committee or other relevant committee in which the options
are granted, on the stock exchange on which the shares of the Bank, ICICI Prudential Life Insurance Company, ICICI
Lombard General Insurance Company and ICICI Securities Limited 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.
4.
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 Accounting Standard 22 - Accounting for Taxes on Income respectively. Deferred tax
adjustments comprise changes in the deferred tax assets or liabilities during the year.
Deferred tax assets and liabilities are recognised by considering the impact of timing differences between taxable
income and accounting income for the current year, 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.
Deferred tax assets are recognised and re-assessed at each reporting date, based upon the management’s judgement
as to whether their realisation is considered as reasonably certain. However, in case of domestic companies, 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.
270
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
In the consolidated financial statements, deferred tax assets and liabilities are computed at an individual entity level
and aggregated for consolidated reporting.
Minimum Alternate Tax (MAT) credit is recognised as an asset to the extent there is convincing evidence that the
Group will pay normal income tax during specified period, i.e., the period for which MAT credit is allowed to be
carried forward as per prevailing provisions of the Income Tax Act, 1961. In accordance with the recommendation
contained in the guidance note issued by ICAI, MAT credit is to be recognised as an asset in the year in which it
becomes eligible for set off against normal income tax. The Group reviews MAT credit entitlements at each balance
sheet date and writes down the carrying amount to the extent there is no longer convincing evidence to the effect
that the Group will pay normal income tax during the specified period.
5. 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 management estimates or 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. Salvaged stock is recognised at estimated net realisable value based on independent
valuer’s report. 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/ actuarial valuation. 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, benefits paid comprise policy benefits and claim settlement costs, if any.
Death and rider claims are accounted for on receipt of intimation. Survival and maturity benefits are accounted when
due. Withdrawals and surrenders under non linked policies are accounted on the receipt of intimation. Claim settlement
cost, legal and other fees should also form part of claim cost wherever applicable. Reinsurance claims receivable are
accounted for in the period in which the claim is intimated. Repudiated claims and other claims disputed before the
judicial authorities are provided for on prudent basis as considered appropriate by the management.
6. Liability for life policies in force
In the case of life insurance business, the liabilities for life policies in force are calculated in accordance with accepted
actuarial practice, requirements of Insurance Act, 1938 (amended by Insurance Laws (Amendment) Act, 2015)
and regulations notified by the Insurance Regulatory and Development Authority of India and Actuarial Practice
Standards of the Institute of Actuaries of India.
7. Reserve for unexpired risk
Reserve for unexpired risk is recognised net of re-insurance ceded and represents premium written that is attributable
to, and is to be allocated to succeeding accounting periods. For fire, marine, cargo and miscellaneous business it is
calculated on a daily pro-rata basis, except in the case of marine hull business which is computed at 100.00% of net
premium written on all unexpired policies at balance sheet date.
8. 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, morbidity, 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.
271
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The liability for the unexpired portion of the risk for the non-unit liabilities of linked business and attached riders is
the higher of liability calculated using discounted cash flows and unearned premium reserves.
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.
An unexpired risk reserve and a reserve in respect of claims incurred but not reported are created, for one year
renewable group term insurance.
The interest rates used for valuing the liabilities are in the range of 4.44% to 6.48% per annum (previous year –
4.66% to 6.13% per annum).
Mortality rates used are based on the published "Indian Assured Lives Mortality (2006 - 2008) Ult". 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 but with an allowance for any expected worsening. Per policy renewal expenses for regular premium
policies are assumed to inflate at 4.19% (previous year – 4.38%).
9. 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. Employee benefits
Gratuity
The Group pays gratuity, a defined benefit plan, 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. The Group makes contribution to trusts which administer the funds on their own account or through
insurance companies.
The actuarial gains or losses arising during the year are recognised in the profit and loss account.
Actuarial valuation of the gratuity liability is determined by an actuary appointed by the Group. 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 and National Pension Scheme
The Bank contributes 15.0% of the total annual basic salary of certain employees to superannuation funds, a defined
contribution plan, managed and administered by insurance companies. Further, the Bank contributes 10.00% of
the total basic salary of certain employees to National Pension Scheme (NPS), a defined contribution plan, which
is managed and administered by pension fund management companies. The Bank also gives an option to its
employees allowing them to receive the amount in lieu of such contributions along with their monthly salary during
their employment.
The amounts so contributed/paid by the Bank to the superannuation fund and NPS or to employees during the year
are recognised in the profit and loss account.
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 defined benefit plan covering eligible employees of erstwhile Bank of Madura,
erstwhile Sangli Bank and erstwhile Bank of Rajasthan. The Bank makes contribution to a trust which administers
the funds on its own account or through insurance companies. The plan provides for pension payment including
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
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.
Actuarial valuation of the pension liability 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.
The actuarial gains or losses arising during the year are recognised in the profit and loss account.
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, a defined benefit plan, as a part of retirement
benefits to its employees. Each employee contributes a certain percentage of his or her basic salary and the Group
contributes an equal amount for eligible employees. The Group makes contribution as required by The Employees’
Provident Funds and Miscellaneous Provisions Act, 1952 to Employees’ Pension Scheme administered by the
Regional Provident Fund Commissioner and the balance contributions are transferred to funds administered by
trustees. 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 Group.
The actuarial gains or losses arising during the year are recognised in the profit and loss account.
The overseas branches of the Bank and its eligible employees contribute a certain percentage of their salary towards
respective government schemes as per local regulatory guidelines. The contribution made by the overseas branches
is recognised in profit and loss account at the time of contribution.
Compensated absences
The Group provides for compensated absences 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 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 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.
The Bank estimates the probability of redemption of customer loyalty reward points using an actuarial method by
employing an independent actuary and accordingly makes provision for these reward points. Actuarial valuation
is determined based on certain assumptions regarding mortality rate, discount rate, cancellation rate and
redemption rate.
12. 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.
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13. 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)
b)
c)
d)
e)
f)
g)
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 categorised 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 closing quotes on the
recognised stock exchanges or prices declared by Primary Dealers Association of India (PDAI) jointly with
Fixed Income Money Market and Derivatives Association (FIMMDA)/Financial Benchmark India Private
Limited (FBIL), 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/FBIL. The valuation of other unquoted fixed income securities, including Pass
Through Certificates, 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.
The Sovereign foreign securities and non-INR India linked bonds are valued on the basis of prices published
by the Sovereign regulator or counterparty quotes.
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. Depreciation/appreciation on securities, other than those acquired by
way of conversion of outstanding loans, is aggregated for each category. Net appreciation in each category
under each investment classification, if any, being unrealised, is ignored, while net depreciation is provided
for. The depreciation on securities acquired by way of conversion of outstanding loan is fully provided for.
Non-performing investments are identified based on the RBI guidelines.
Treasury bills, commercial papers and certificate of deposits being discounted instruments, are valued
at carrying cost.
The units of mutual funds are valued at the latest repurchase price/net asset value declared by
the mutual fund.
Costs including brokerage and commission pertaining to investments, paid at the time of acquisition,
are charged to the profit and loss account. Cost of investments is computed based on the
First-In-First-Out (FIFO) method.
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.
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h)
Market repurchase, reverse repurchase and transactions with RBI under Liquidity Adjustment Facility (LAF)
are accounted for as borrowing and lending transactions in accordance with the extant RBI guidelines.
i)
j)
k)
l)
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.
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. The security receipts
which are outstanding and not redeemed as at the end of the resolution period are treated as loss assets
and are fully provided for.
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.
The Bank undertakes short sale transactions in dated central government securities in accordance with
RBI guidelines. The short positions are categorised under HFT category and are marked-to-market.
The mark-to-market loss is charged to profit and loss account and gain, if any, is ignored as per RBI guidelines.
ii)
iii)
iv)
v)
The Bank’s consolidating venture capital fund carries 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.
The Bank’s primary dealership and securities broking subsidiaries classify the securities held with the intention
of holding for short-term and trading as stock-in-trade which are valued at lower of cost or market value.
The securities classified by primary dealership subsidiary as held-to-maturity, as permitted by RBI, are carried at
amortised 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.
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 their acquisition cost or at amortised
cost, if acquired at a premium over the face value. Any premium over the face value of the securities acquired is
amortised over the remaining period to maturity on a constant yield basis. However, a provision for diminution
in value is made to recognise any other than temporary decline in the value of such long-term investments.
The Bank’s overseas banking subsidiaries account for unrealised gain/loss, net of tax, on investment in ‘Available
for Sale’/’Fair Value Through Other Comprehensive Income’ (FVOCI) category directly in their reserves.
Further unrealised gain/loss on investment in ‘Held for Trading’/‘Fair Value Through Profit and Loss’ (FVTPL)
category is accounted directly in the profit and loss account. Investments in ‘Held to Maturity’/’amortised cost’
category are carried at amortised cost.
vi)
In the case of life and general insurance businesses, investments are made in accordance with the Insurance
Act, 1938 (amended by the Insurance Laws (Amendment) Act, 2015), the IRDA (Investment) Regulations, 2016,
and various other circulars/notifications issued by the IRDAI in this context from time to time.
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
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 over the period of
maturity/holding on a constant yield basis.
b)
Listed equity shares are stated at fair value being the last quoted closing price on the National Stock
Exchange (NSE) (or BSE, in case the investments are not listed on NSE).
c) Mutual fund units are valued based on the previous day’s net asset value.
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’ and ‘Liabilities on policies in force’ in the balance sheet for
Shareholders’ fund and Policyholders’ fund respectively for life insurance business.
In the case of general insurance business, valuation of investments is done on the following basis:
a)
b)
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 constant yield basis over the holding/maturity period.
Listed equities and convertible preference shares at the balance sheet date are stated at fair value,
being the last quoted closing price on the NSE and in case these are not listed on NSE, then based on
the last quoted closing price on the 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.
d)
Investments other than mentioned above are valued at cost.
Unrealised gains/losses arising due to changes in the fair value of listed equity shares, convertible
preference shares and mutual fund units are taken to ’Revenue and other reserves’ in the balance
sheet for general insurance business.
Insurance subsidiaries assess at each balance sheet date whether there is any indication that any
investment 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 22.44% of the total investments at March 31, 2019.
14. Provisions/write-offs on loans and other credit facilities
i)
Loans and other credit facilities of the Bank are accounted for in accordance with the extant RBI guidelines
as given below:
a)
The Bank classifies its loans and investments, including at overseas branches and overdues arising from
crystallised derivative contracts, into performing and NPAs in accordance with RBI guidelines. Loans and
advances held at the overseas branches that are identified as impaired as per host country regulations
for reasons other than record of recovery, but which are standard as per the extant RBI guidelines, are
classified as NPAs to the extent of amount outstanding in the host country. Further, NPAs are classified into
sub-standard, doubtful and loss assets based on the criteria stipulated by RBI.
In the case of corporate loans and advances, 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 loans and 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
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
made as per the host country regulations. For loans and advances booked in overseas branches, which are
NPAs as per the extant RBI guidelines and as per host country guidelines, provisions are made at the higher
of the provisions required under RBI regulations and host country regulations. Provisions on homogeneous
retail loans and advances, subject to minimum provisioning requirements of RBI, are assessed on the basis
of the ageing of the loans in the non-performing category. As per RBI guidelines, in respect of non-retail
loans reported as fraud to RBI and classified in doubtful category, the entire amount, without considering
the value of security, is provided for over a period not exceeding four quarters starting from the quarter in
which fraud has been detected. In respect of non-retail loans where there has been delay in reporting the
fraud to the RBI or which are classified as loss accounts, the entire amount is provided immediately. In case
of fraud in retail accounts, the entire amount is provided immediately. In respect of borrowers classified
as non-cooperative borrowers or willful defaulters, the Bank makes accelerated provisions as per extant
RBI guidelines.
The Bank holds specific provisions against non-performing loans and advances, and against certain
performing loans and advances in accordance with RBI directions, including RBI direction for provision
on accounts referred to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy
Code, 2016. The assessment of incremental specific provisions is made after taking into consideration the
existing specific provision held. The specific provisions on retail loans and advances held by the Bank are
higher than the minimum regulatory requirements.
b)
Provision due to diminution in the fair value of restructured/rescheduled loans and advances is made in
accordance with the applicable RBI guidelines.
Non-performing and restructured loans are upgraded to standard as per the extant RBI guidelines.
c)
d)
e)
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.
The Bank maintains general provision on performing loans and advances in accordance with the RBI
guidelines, including provisions on loans to borrowers having unhedged foreign currency exposure,
provisions on loans to specific borrowers in specific stressed sector, provision on exposures to step-down
subsidiaries of Indian companies and provision on incremental exposure to borrowers identified as per
RBI’s large exposure framework. For performing loans and advances in overseas branches, the general
provision is made at higher of host country regulations requirement and RBI requirement.
In addition to the provisions required to be held according to the asset classification status, provisions
are held for individual country exposures including indirect country risk (other than for home country
exposure). The countries are categorised into seven risk categories namely insignificant, low, moderately
low, moderate, moderately high, high and very high, and provisioning is made on exposures exceeding
180 days on a graded scale ranging from 0.25% to 25.00%. 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. The indirect exposure is reckoned at 50.00% of the exposure. 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.
f)
The Bank makes floating provision as per the Board approved policy, which is in addition to the specific
and general provisions made by the Bank. The floating provision is utilised, with the approval of Board and
RBI, in case of contingencies which do not arise in the normal course of business and are exceptional and
non-recurring in nature and for making specific provision for impaired loans as per the requirement of extant
RBI guidelines or any regulatory guidance/instructions. The floating provision is netted-off from advances.
ii)
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
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
iii)
iv)
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 UK subsidiary, 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 Bank’s Canadian subsidiary measures impairment loss on all financial assets using Expected Credit Loss
(ECL) model based on a three-stage approach. The ECL for financial assets that are not credit-impaired and for
which there is no significant increase in credit risk since origination, is computed using 12-month probability
of default (PD), and represents the lifetime cash shortfalls that will result if a default occurs in next 12 months.
The ECL for financial assets, that are not credit-impaired but have experienced a significant increase in credit
risk since origination, is computed using a life time PD, and represents lifetime cash shortfalls that will result if a
default occurs during the expected life of financial assets. A financial asset is considered credit-impaired when
one or more events that have a detrimental impact on the estimated future cash flows of that financial asset
have occurred. The allowance for credit losses for impaired financial assets is computed based on individual
assessment of expected cash flows from such assets.
The total proportion of loans for which subsidiaries have applied accounting policies different from the Bank as
mentioned above, is approximately 9.34% of the total loans at March 31, 2019.
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 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. With effect from May 7, 2012, the RBI guidelines require the profit/premium arising from
securitisation to be amortised over the life of the transaction based on the method prescribed in the guidelines.
In accordance with RBI guidelines, in case of non-performing/special mention account-2 loans sold to Securitisation
Company (SC)/Reconstruction Company (RC), the Bank reverses the excess provision in profit and loss account in
the year in which amounts are received. Any shortfall of sale value over the net book value on sale of such assets is
recognised by the Bank in the year in which the loan is sold.
The Canadian subsidiary has entered into securitisation arrangements in respect of its originated and purchased
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 as “Loans and Advances” and the amounts received
through securitisation are recognised as “Other borrowings”.
16. Fixed assets
Fixed assets, other than premises of the Bank and its housing finance subsidiary are carried at cost less accumulated
depreciation and impairment, if any. In case of the Bank and its housing finance subsidiary, premises are carried at
revalued amount, being fair value at the date of revaluation 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 fixed assets on a straight-line basis. The useful life of the groups of fixed assets for
domestic group companies is based on past experience and expectation of usage, which for some categories of
fixed assets, is different from the useful life as prescribed in Schedule II to the Companies Act, 2013.
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Assets purchased/sold during the year are depreciated on a pro-rata basis for the actual number of days the asset
has been capitalised.
In case of the Bank, items individually costing up to ` 5,000/- are depreciated fully over a period of 12 months from
the date of purchase. Further, profit on sale of premises by the Bank is appropriated to capital reserve, net of transfer
to Statutory Reserve and taxes, in accordance with RBI guidelines.
In case of revalued/impaired assets, depreciation is provided over the remaining useful life of the assets with reference
to revised asset values. In case of premises, which are carried at revalued amounts, the depreciation on the excess
of revalued amount over historical cost is transferred from Revaluation Reserve to General Reserve annually.
Non-banking assets
Non-Banking Assets (NBAs) acquired in satisfaction of claims are carried at lower of net book value and net realisable
value. Further, the Bank creates provision on non-banking assets as per specific RBI directions.
17. Accounting for derivative contracts
The Group enters into derivative contracts such as interest rate and currency options, interest rate and currency
futures, 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 liabilities and accounted pursuant to the principles
of hedge accounting. Hedge swaps are accounted for on an accrual basis and are not marked to market unless
their underlying transaction is marked to market, except in the case of the Bank’s overseas banking subsidiaries.
In overseas subsidiaries, in case of fair value hedge, 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 and in case of cash
flow hedges, changes in the fair value of effective portion of the cash flow hedge are taken to ‘Revenue and other
reserves’ and ineffective portion, if any, are 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 or loss 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.
18. Impairment of assets
The immovable fixed assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. An asset is treated as impaired when its carrying
amount exceeds its recoverable amount. The impairment is recognised by debiting the profit and loss account
and is measured as the amount by which the carrying amount of the impaired assets exceeds their recoverable
value. The Bank and its housing finance subsidiary follows revaluation model of accounting for its premises and the
recoverable amount of the revalued assets is considered to be close to its revalued amount. Accordingly, separate
assessment for impairment of premises is not required.
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 on straight line basis.
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 issued by the group outstanding during the year, except
where the results are anti-dilutive.
279
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
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 attributable to equity shareholders by the weighted average number
of equity shares outstanding during the year. Diluted earnings per equity share is computed using the weighted average
number of equity shares and weighted average number of 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 attributable to equity share holders
Basic earnings per share (`)
Diluted
Weighted average no. of equity shares outstanding
Net profit attributable to equity share holders
Diluted earnings per share (`)1
Nominal value per share (`)
1.
The dilutive impact is due to options granted to employees by the Group.
2. Related party transactions
` in million, except per share data
Year ended
March 31, 2018
Year ended
March 31, 2019
6,435,966,473
42,542.4
6.61
6,417,180,759
77,121.8
12.02
6,509,276,099
42,474.9
6.53
2.00
6,482,375,300
77,098.8
11.89
2.00
The Group has transactions with its related parties comprising associates/other related entities and key management
personnel and relatives of key management personnel.
I.
Related parties
Associates/other related entities
Arteria Technologies Private Limited1, India Advantage Fund-III, India Advantage Fund-IV, India Infradebt Limited,
ICICI Merchant Services Private Limited, I-Process Services (India) Private Limited, NIIT Institute of Finance, Banking
and Insurance Training Limited, Comm Trade Services Limited and ICICI Foundation for Inclusive Growth.
1.
Identified as related party effective from May 29, 2018.
Key management personnel
Mr. Sandeep Bakhshi1, Ms. Vishakha Mulye, Mr. Vijay Chandok, Mr. Anup Bagchi, Mr. N. S. Kannan2 and
Ms. Chanda Kochhar3.
1.
2.
3.
Identified as related party effective from June 19, 2018.
Ceased to be related party effective close of business hours on June 18, 2018.
Ceased to be related party effective from October 4, 2018.
Relatives of key management personnel
Ms. Mona Bakhshi1, Mr. Shivam Bakhshi1, Ms. Esha Bakhshi1, Ms. Minal Bakhshi1, Mr. Sameer Bakhshi1, Mr. Vivek
Mulye, Ms. Vriddhi Mulye, Dr. Gauresh Palekar, Ms. Shalaka Gadekar, Ms. Manisha Palekar, Ms. Poonam Chandok,
Ms. Saluni Chandok, Ms. Simran Chandok,Mr. C. V. Kumar, Ms. Shad Kumar, Ms. Sanjana Gulati, Ms. Mitul Bagchi,
Mr. Aditya Bagchi, Mr. Shishir Bagchi, Mr. Arun Bagchi, Mr. Animesh Bagchi, Ms. Rangarajan Kumudalakshmi2,
Ms. Aditi Kannan2, Ms. Sudha Narayanan2, Mr. Raghunathan Narayanan2, Mr. Rangarajan Narayanan2,
Mr. Deepak Kochhar3, Mr. Arjun Kochhar3, Ms. Aarti Kaji3 and Mr. Mahesh Advani3.
1.
2.
3.
Identified as related party effective from June 19, 2018.
Ceased to be related party effective close of business hours on June 18, 2018.
Ceased to be related party effective from October 4, 2018.
280
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
II. Transactions with related parties
The following table sets forth, for the periods indicated, the significant transactions between the Group and its
related parties.
Particulars
Interest income
Associates/others
Key management personnel
Relatives of key management personnel
Total interest income
Fee, commission and other income
Associates/others
Key management personnel
Relatives of key management personnel
Total fee, commission and other income
Commission income on guarantees issued
Associates/others
Key management personnel
Relatives of key management personnel
Total commission income on guarantees issued
Insurance premium received
Associates/others
Key management personnel
Relatives of key management personnel
Total insurance premium received
Gain/(loss) on forex and derivative transactions (net)2
Associates/others
Key management personnel
Relatives of key management personnel
Total gain/(loss) on forex and derivative transactions (net)
Dividend income
Associates/others
Total dividend income
Reimbursement of expenses to the Group
Associates/others
Key management personnel
Relatives of key management personnel
Total reimbursement of expenses to the Group
Recovery of lease of premises, common corporate and facilities
expenses
Associates/others
Key management personnel
Relatives of key management personnel
Total recovery of lease of premises, common corporate and facilities
expenses
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
264.7
11.7
0.01
276.4
58.3
1.2
0.2
59.7
0.1
-
-
0.1
24.5
1.1
3.4
29.0
0.1
-
-
0.1
63.8
63.8
-
-
-
-
59.7
-
-
59.7
212.6
9.0
0.1
221.7
25.1
0.5
0.01
25.6
0.1
-
-
0.1
34.0
2.6
4.6
41.2
(0.0)1
-
-
(0.0)1
63.8
63.8
3.3
-
-
3.3
69.2
-
-
69.2
281
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Particulars
Recovery of secondment of employees
Associates/others
Total recovery of secondment of employees
Interest expense
Associates/others
Key management personnel
Relatives of key management personnel
Total interest expense
Remuneration to wholetime directors3
Key management personnel
Total remuneration to wholetime directors
Reimbursement of expenses to related parties
Associates/others
Key management personnel
Relatives of key management personnel
Total reimbursement of expenses to related parties
Insurance claims paid
Associates/others
Key management personnel
Relatives of key management personnel
Total insurance claims paid
Brokerage, fee and other expenses
Associates/others
Key management personnel
Relatives of key management personnel
Total brokerage, fee and other expenses
Donation given
Associates/others
Total donation given
Dividend paid
Associates/others
Key management personnel
Relatives of key management personnel
Total dividend paid
Investments in the securities issued by related parties
Associates/others
Total investments in the securities issued by related parties
Redemption/buyback of investments
Associates/others
Total redemption/buyback of investments
Sale of fixed assets
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Total sale of fixed assets
282
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
9.4
9.4
7.8
4.2
1.7
13.7
270.5
270.5
0.1
-
-
0.1
-
0.1
-
0.1
9,649.2
-
-
9,649.2
1,031.0
1,031.0
-
10.5
3.1
13.6
10,000.0
10,000.0
534.7
534.7
-
7.2
-
7.2
8.7
8.7
5.4
10.2
3.1
18.7
232.9
232.9
0.1
-
-
0.1
0.1
-
0.4
0.5
7,030.4
-
-
7,030.4
1,182.2
1,182.2
-
8.5
0.01
8.5
12,907.0
12,907.0
647.2
647.2
-
-
-
-
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS 1. Insignificant amount.
2. 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. 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.
3. Excludes the perquisite value on employee stock options exercised, contribution to gratuity fund and includes performance bonus
paid during the period.
III. Material transactions with related parties
The following table sets forth, for the periods indicated, the material transactions between the Group and its
related parties. 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.
Particulars
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
NIIT Institute of Finance Banking and Insurance Training Limited
India Infradebt Limited
India Infradebt Limited
India Infradebt Limited
India Infradebt Limited
ICICI Foundation for Inclusive Growth
ICICI Foundation for Inclusive Growth
Arteria Technologies Private Limited3
ICICI Merchant Services Private Limited
India Infradebt Limited
Interest income
1
Fee, commission and other income
1
Commission income on guarantees issued
1
Insurance premium received
1
2 Mr. Vivek Mulye
Gain/(loss) on forex and derivative transactions (net)2
1
2
3
Dividend income
1
Reimbursement of expenses to the Group
1
Recovery of lease of premises, common corporate and facilities
expenses
1
Recovery of secondment of employees
1
Interest expense
1
2
3
4 Ms. Chanda Kochhar4
Remuneration to wholetime directors5
1 Mr. Sandeep Bakhshi6
2 Ms. Vishakha Mulye
3 Mr. Vijay Chandok
4 Mr. Anup Bagchi
5 Mr. N. S. Kannan7
6 Ms. Chanda Kochhar4
Reimbursement of expenses to related parties
1
Insurance claims paid
1
2 Mr. Anup Bagchi
3 Mr. Deepak Kochhar4
ICICI Foundation for Inclusive Growth
India Infradebt Limited
Arteria Technologies Private Limtited3
I-Process Services (India) Private Limited
I-Process Services (India) Private Limited
NIIT Institute of Finance Banking and Insurance Training Limited
261.4
58.3
0.1
20.5
3.1
0.1
-
-
63.8
-
56.2
9.4
2.3
2.2
1.6
3.0
47.2
50.2
45.5
44.1
9.4
74.1
0.1
-
0.1
-
212.6
23.4
0.1
30.0
3.2
N.A.
(0.0)1
(0.0)1
63.8
3.3
63.6
8.7
2.4
1.7
N.A.
9.5
N.A.
43.1
44.1
37.3
45.1
63.3
0.1
0.1
-
0.4
283
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Particulars
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
1,182.2
1,031.0
4,600.8
2,415.9
5,463.4
4,174.7
India Infradebt Limited
3.2
2.6
0.01
0.1
-
4.6
1.6
ICICI Foundation for Inclusive Growth
I-Process Services (India) Private Limited
ICICI Merchant Services Private Limited
Brokerage, fee and other expenses
1
2
Donation given
1
Dividend paid
1 Mr. Sandeep Bakhshi6
2 Ms. Vishakha Mulye
3 Mr. Vijay Chandok
4 Mr. Anup Bagchi
5 Mr. N. S. Kannan7
6 Ms. Chanda Kochhar4
7 Mr. Shivam Bakhshi6
Investments in the securities issued by related parties
1
Redemption/buyback of investments
1
2
Sale of fixed assets
1 Ms. Chanda Kochhar4
Insignificant amount.
1.
The Bank undertakes derivative transactions with its subsidiaries, associates, joint ventures and other related entities. The Bank
2.
manages its foreign exchange and interest rate risks arising from these transactions by covering them in the market. 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.
Identified as related party effective from May 29, 2018.
Ceased to be related party effective from October 4, 2018.
Excludes the perquisite value on employee stock options exercised, contribution to gratuity fund and includes performance
bonus paid during the period.
Identified as related party effective from June 19, 2018.
Ceased to be related party effective close of business hours on June 18, 2018.
India Advantage Fund-III
India Advantage Fund-IV
N.A.
1.7
0.01
0.01
1.1
5.7
N.A.
260.8
386.4
272.7
262.0
10,000.0
12,907.0
3.
4.
5.
6.
7.
7.2
-
IV. Related party outstanding balances
The following table sets forth, for the periods indicated, the outstanding balances payable to/receivable from
related parties.
Items
Deposits with the Group
Associates/others
Key management personnel
Relatives of key management personnel
Total deposits with the Group
Payables
Associates/others
Key management personnel
Relatives of key management personnel
Total payables
Investments of the Group
Associates/others
Key management personnel
284
At
March 31, 2019
` in million
At
March 31, 2018
522.9
63.2
13.5
599.6
1,797.1
0.01
0.01
1,797.1
10,777.0
-
1,069.6
146.1
120.8
1,336.5
761.0
0.01
0.01
761.0
6,939.3
-
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Items
Relatives of key management personnel
Total investments of the Group
Investments of related parties in the Group
Associates/others
Key management personnel
Relatives of key management personnel
Total investments of related parties in the Group
Advances by the Group
Associates/others
Key management personnel
Relatives of key management personnel
Total advances by the Group
Receivables
Associates/others
Key management personnel
Relatives of key management personnel
Total receivables
Guarantees issued by the Group
Associates/others
Key management personnel
Relatives of key management personnel
Total guarantees issued by the Group
1.
2.
Items
Deposits with the Group
Key management personnel
Relatives of key management personnel
Payables1
Key management personnel
Relatives of key management personnel
Investments of related parties in the Group1
Key management personnel
Relatives of key management personnel
Advances by the Group
Key management personnel
Relatives of key management personnel
1.
2.
At
March 31, 2019
-
10,777.0
` in million
At
March 31, 2018
-
6,939.3
-
6.5
9.5
16.0
45.0
254.1
0.4
299.5
123.0
-
-
123.0
11.2
-
-
11.2
-
10.7
0.01
10.7
-
161.1
0.7
161.8
85.7
-
-
85.7
1.1
-
-
1.1
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
234.6
175.3
0.02
0.1
21.5
9.5
198.2
550.5
0.1
0.1
10.7
0.02
Insignificant amount.
At March 31, 2019, 20,022,000 (March 31, 2018: 38,444,750) employee stock options for key management personnel were
outstanding. Excludes stock options granted to key management personnel, which are pending regulatory approvals.
During the year ended March 31, 2019, 2,062,000 (year ended March 31, 2018: 408,119), employee stock options with total
exercise price of ` 296.3 million (year ended March 31, 2018: ` 60.0 million) were exercised by the key management personnel.
3.
V. Related party maximum balances
The following table sets forth, for the periods indicated, the maximum balances payable to/receivable from
related parties.
203.6
3.1
Maximum balance is determined based on comparison of the total outstanding balances at each quarter end during the financial year.
Insignificant amount.
256.2
0.9
285
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
3. Employee Stock Option Scheme (ESOS)
ICICI Bank:
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 10% of the aggregate number of the issued
equity shares of the Bank on the date(s) of the grant of options in line with SEBI Regulations. Under the stock option
scheme, eligible employees are entitled to apply for equity shares. In April 2016, exercise period was modified from
10 years from the date of grant or five years from the date of vesting, whichever is later, to 10 years from the date
of vesting of options. In June 2017, exercise period was further modified to not exceed 10 years from the date of
vesting of options as may be determined by the Board Governance, Remuneration & Nomination Committee to be
applicable for future grants. In May 2018, exercise period was further modified to not exceed 5 years from the date
of vesting of options as may be determined by the Board Governance, Remuneration & Nomination Committee to
be applicable for future grants.
Options granted after March 2014, vest in a graded manner over a three-year period with 30%, 30% and 40% of
the grant vesting in each year, commencing from the end of 12 months from the date of grant other than certain
options granted in April 2014 which vested to the extent of 50% on April 30, 2017 and the balance vested on
April 30, 2018 and option granted in September 2015 which vested to the extent of 50% on April 30, 2018 and
balance 50% would vest on April 30, 2019. However, for the options granted in September 2015, if the participant’s
employment terminates due to retirement (including pursuant to any early/voluntary retirement scheme), all the
unvested options would lapse. Options granted in January 2018 would vest at the end of four years from the date of
grant. Certain options granted in May 2018, would vest to the extent of 50% on May 7, 2021 and balance 50% would
vest on May 7, 2022 and any unvested options would lapse upon termination of employment due to retirement
(including pursuant to early/voluntary retirement scheme).
Options granted prior to March 2014 except mentioned below, vested 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 vested 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 vested in a graded manner over a five-year 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 exercise price of the Bank’s options, except mentioned below, is the last closing price on the stock exchange,
which recorded highest trading volume preceding the date of grant of options. In February 2011, the Bank granted
16,692,500 options to eligible employees and wholetime Directors of the Bank and certain of its subsidiaries at
an exercise price of ` 175.82. This exercise price was the average closing price on stock exchange during the six
months ended October 28, 2010. Of these options granted, 50% vested on April 30, 2014 and the balance 50%
vested on April 30, 2015.
Based on intrinsic value of options, no compensation cost was recognised during the year ended March 31, 2019
(year ended March 31, 2018: Nil). If the Bank had used the fair value of options based on binomial tree model,
compensation cost in the year ended March 31, 2019 would have been higher by ` 3,179.0 million (year ended
March 31, 2018: ` 3,526.6 million) and proforma profit after tax would have been ` 30,454.0 million (year ended
March 31, 2018: ` 64,247.6 million). On a proforma basis, the Bank’s basic and diluted earnings per share would
have been ` 4.73 (year ended March 31, 2018: ` 10.01) and ` 4.68 (March 31, 2018: ` 9.91) respectively for the year
ended March 31, 2019.
286
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following table sets forth, for the periods indicated, the key assumptions used to estimate the fair value of
options granted.
Particulars
Risk-free interest rate
Expected life
Expected volatility
Expected dividend yield
Year ended March
Year ended
31, 2018
March 31, 2019
7.06% to 7.59%
7.32% to 8.31%
3.64 to 6.64 years
3.90 to 6.90 years
30.79% to 32.22% 31.71% to 32.92%
0.73% to 1.81%
0.43% to 0.80%
The weighted average fair value of options granted during the year ended March 31, 2019 was ` 107.22 (year ended
March 31, 2018: ` 86.43).
Risk free interest rates over the expected term of the option are based on the government securities yield in effect
at the time of the grant. The expected term of an option is estimated based on the vesting term as well as expected
exercise behaviour of the employees who receive the option. Expected exercise behaviour is estimated based on
the historical stock option exercise pattern of the Bank. Expected volatility during the estimated expected term
of the option is based on historical volatility determined based on observed market prices of the Bank's publicly
traded equity shares. Expected dividends during the estimated expected term of the option are based on recent
dividend activity.
The following table sets forth, for the periods indicated, the summary of the status of the Bank’s stock option plan.
Particulars
Stock options outstanding
` except number of options
Outstanding at the beginning of the
year
Add: Granted during the year1
Less: Lapsed during the year, net of
re-issuance
Less: Exercised during the year
Outstanding at the end of the year
Options exercisable
1.
Year ended March 31, 2019
Year ended March 31, 2018
Number of
options
Weighted average
exercise price
Number of
options
Weighted average
exercise price
235,672,250
35,419,900
20,415,499
18,248,877
232,427,774
152,151,329
224.19
283.91
229.88
191.04
235.40
222.84
226,715,682
35,137,770
217.12
251.05
5,114,174
21,067,028
235,672,250
136,428,736
248.30
187.00
224.19
208.44
Includes stock options granted to WTDs which are pending regulatory approvals.
The following table sets forth, the summary of stock options outstanding at March 31, 2019
Range of exercise price
(` per share)
60-99
100-199
200-299
300-399
Number of shares
arising out of
options
1,602,975
33,771,457
196,076,442
976,900
Weighted
average
exercise price
(` per share)
79.15
166.66
248.04
329.56
Weighted average
remaining
contractual life
(number of years)
3.84
4.23
8.11
8.64
287
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following table sets forth, the summary of stock options outstanding at March 31, 2018.
Range of exercise price
(` per share)
60-99
100-199
200-299
300-399
Number of shares
arising out of
options
Weighted average
exercise price
(` per share)
1,849,150
47,665,539
185,857,561
300,000
79.12
165.43
240.57
309.50
Weighted average
remaining
contractual life
(number of years)
4.91
4.85
9.43
13.79
The options were exercised regularly throughout the period and weighted average share price as per National
Stock Exchange price volume data during the year ended March 31, 2019 was ` 326.37 (year ended March 31,
2018: ` 296.94)
ICICI Life:
ICICI Prudential Life Insurance Company has formulated ESOS for their employees. There is no compensation cost
for the year ended March 31, 2019 based on the intrinsic value of options. If the entity had used the fair value
approach for accounting of options, there would have been an incremental compensation cost of ` 316.8 million for
the year ended March 31, 2019 (for the year ended March 31, 2018: ` 39.7 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
Stock options outstanding
` except number of options
Year ended March 31, 2019
Year ended March 31, 2018
Number of
shares
Weighted average
exercise price
Number of
shares
Weighted average
exercise price
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
2,820,888
7,304,150
2,115,950
285,771
7,723,317
273,037
382.70
387.62
399.14
164.40
390.92
355.79
2,398,838
656,300
82,650
151,600
2,820,888
2,193,488
352.49
468.60
410.92
261.08
382.70
358.13
The following table sets forth, summary of stock options outstanding of ICICI Prudential Life Insurance Company at
March 31, 2019.
Range of exercise price
(` per share)
100-299
300-399
400-499
Number of shares
arising out of
options
90,967
7,025,450
606,900
Weighted
average
exercise price
(` per share)
130.00
387.58
468.60
Weighted average
remaining
contractual life
(number of years)
1.1
7.1
10.4
288
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
The following table sets forth, summary of stock options outstanding of ICICI Prudential Life Insurance Company at
March 31, 2018.
Range of exercise price
(` per share)
100-299
300-400
401-500
Number of shares
arising out of
options
Weighted average
exercise price
(` per share)
340,113
1,853,375
627,400
130.00
400.00
468.60
Weighted average
remaining
contractual life
(number of years)
2.1
0.1
11.4
ICICI General:
ICICI Lombard General Insurance Company has formulated ESOS for their employees. There is no compensation
cost for the year ended March 31, 2019 based on the intrinsic value of options. If the entity had used the fair value
approach for accounting of options, there would have been an incremental compensation cost of ` 176.2 million for
the year ended March 31, 2019 (for the year ended March 31, 2018: Nil).
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
Stock options outstanding
` except number of options
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
Year ended March 31, 2019
Year ended March 31, 2018
Number of
shares
495,140
2,529,700
17,700
361,640
2,645,500
2,645,500
Weighted average
exercise price
103.28
715.15
715.15
102.50
684.37
684.37
Number of
shares
3,180,324
-
21,250
2,663,934
495,140
495,140
Weighted average
exercise price
125.83
-
113.06
130.13
103.28
103.28
The following table sets forth, summary of stock options outstanding of ICICI Lombard General Insurance Company
at March 31, 2019.
Range of exercise price
(` per share)
35-99
100-200
700-799
Number of shares
arising out of
options
16,000
117,500
2,512,000
Weighted
average
exercise price
(` per share)
60.00
111.45
715.15
Weighted average
remaining
contractual life
(number of years)
1.1
1.6
4.3
The following table sets forth, summary of stock options outstanding of ICICI Lombard General Insurance Company
at March 31, 2018.
Range of exercise price
(` per share)
35 to 99
100 to 200
Number of shares
arising out of
options
Weighted average
exercise price
(` per share)
147,140
348,000
80.89
112.74
Weighted average
remaining
contractual life
(number of years)
1.34
2.31
289
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
ICICI Securities:
ICICI Securities Limited has formulated ESOS for their employees. There is no compensation cost for the year ended
March 31, 2019 based on the intrinsic value of options. If the entity had used the fair value approach for accounting
of options, there would have been an incremental compensation cost of ` 4.1 million for the year ended March 31,
2019 (for the year ended March 31, 2018: Nil).
The following table sets forth, for the periods indicated, a summary of the status of the stock option plan of ICICI
Securities Limited.
` except number of options
Particulars
Stock options outstanding
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
Year ended March 31, 2019
Year ended March 31, 2018
Number of
shares
-
176,700
-
-
176,700
-
Weighted average
exercise price
-
256.55
-
-
256.55
-
Number of
shares
-
-
-
-
-
-
Weighted average
exercise price
-
-
-
-
-
-
The following table sets forth, summary of stock options outstanding of ICICI Securities Limited at March 31, 2019.
Range of exercise price
(` per share)
200-299
Number of shares
arising out of
options
176,700
Weighted
average
exercise price
(` per share)
256.55
Weighted average
remaining
contractual life
(number of years)
6.55
The following table sets forth, summary of stock options outstanding of ICICI Securities Limited at March 31, 2018.
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)
Nil
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, 2019 would have been higher by ` 3,368.9 million (March 31, 2018: ` 3,417.2 million) and proforma
consolidated profit after tax would have been ` 39,173.5 million (March 31, 2018: ` 73,704.6 million). On a proforma
basis, the Group’s basic earnings per share would have been ` 6.09 (March 31, 2018: ` 11.49) and diluted earnings
per share would have been ` 6.01 (March 31, 2018: ` 11.37).
4. 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
290
At
March 31, 2019
` in million
At
March 31, 2018
24,306.2
3,060.7
(3,760.5)
(17,933.7)
5,672.7
20,348.6
4,062.4
(104.8)
(18,678.7)
5,627.5
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
5. 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
At
March 31, 2019
` in million
At
March 31, 2018
Not later than one year
Later than one year and not later than five years
Later than five years
Total
The terms of renewal are those normally prevalent in similar agreements and there are no undue restrictions in the agreements.
673.4
1,786.2
507.3
2,966.9
510.1
1,628.9
664.1
2,803.1
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
Sub total
Less: collective provision
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
Sub total
Less: collective provision
Total
At
March 31, 2019
` in million
At
March 31, 2018
1,417.8
89.1
1,506.9
(2.8)
1,504.1
406.5
951.3
149.1
1,506.9
(2.8)
1,504.1
1,136.8
77.5
1,214.3
(3.0)
1,211.3
281.8
788.7
143.8
1,214.3
(3.0)
1,211.3
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
Maturity profile of future present value of finance lease receipts
- Not later than one year
- Later than one year and not later than five years
- Later than five years
Sub total
Less: collective provision
Total
At
March 31, 2019
` in million
At
March 31, 2018
372.7
897.4
147.7
1,417.8
(2.8)
1,415.0
256.4
740.2
140.2
1,136.8
(3.0)
1,133.8
291
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
6. Preference shares
During the year ended March 31, 2019, the Bank redeemed preference shares of ` 3,500.0 million after obtaining
requisite approval from RBI. The Bank has created capital redemption reserve of ` 3,500.0 million as required under
the Companies Act, 2013, out of surplus profits available for previous years.
7. Provisions and contingencies
The following table sets forth, for the periods indicated, the break-up of provisions and contingencies included in the
profit and loss account.
Particulars
Provision for depreciation of investments
Provision towards non-performing and other assets
Provision towards income tax
- Current1
- Deferred
Other provisions and contingencies2
Total provisions and contingencies
1.
Year ended
March 31, 2019
` in million
Year ended
March 31, 2018
3,591.3
176,113.9
48,082.8
(30,891.8)
24,913.0
221,809.2
19,489.3
147,516.1
40,782.1
(21,992.9)
12,724.2
198,518.8
During the year ended March 31, 2018, the Bank has recognised Minimum Alternate Tax (MAT) credit as an asset amounting to
` 2,178.0 million, as the normal income tax liability related to the year ended March 31, 2017 was less than the MAT computed as per
Section 115JB of the Income tax Act, 1961. The MAT asset was fully utilised against the normal income tax liability for the year ended
March 31, 2018.
Includes general provision made towards standard assets, provision on fixed assets acquired under debt-asset swap and non-fund
based facilities.
2.
The Group has assessed its obligations arising in the normal course of business, including pending litigations,
proceedings pending with tax authorities and other contracts including derivative and long term contracts.
In accordance with the provisions of Accounting Standard - 29 on ‘Provisions, Contingent Liabilities and Contingent
Assets’, the Group recognises a provision for material foreseeable losses when it 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. In cases where the available information indicates that the loss
on the contingency is reasonably possible or the amount of loss cannot be reasonably estimated, a disclosure to
this effect is made as contingent liabilities in the financial statements. The Group does not expect the outcome of
these proceedings to have a materially adverse effect on its financial results. For insurance contracts booked in its
life insurance subsidiary, reliance has been placed on the Appointed Actuary for actuarial valuation of ‘liabilities
for policies in force’. The Appointed Actuary has confirmed that the assumptions used in valuation of liabilities for
policies in force are in accordance with the guidelines and norms issued by the IRDAI and the Institute of Actuaries
of India in concurrence with the IRDAI.
8. Staff retirement benefits
Pension
The following tables set forth, for the periods indicated, movement of the present value of the defined benefit
obligation, fair value of plan assets and other details for pension benefits.
Particulars
Opening obligations
Service cost
Interest cost
Actuarial (gain)/loss
Liabilities extinguished on settlement
292
Year ended
March 31, 2019
15,391.1
232.2
1,123.7
1,803.8
(1,833.7)
` in million
Year ended
March 31, 2018
16,686.9
275.0
1,113.1
(1,162.8)
(1,399.0)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Particulars
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
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) of AS 15 on
‘employee benefits’)
Asset/(liability)
Cost1
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
Insurer managed funds
Government of India securities
Corporate bonds
Equity securities in listed companies
Others
Assumptions
Discount rate
Salary escalation rate:
On Basic pay
On Dearness relief
Estimated rate of return on plan assets
1.
Year ended
March 31, 2019
(176.8)
16,540.3
16,303.7
1,381.1
(125.9)
(2,037.4)
94.1
(176.8)
15,438.8
15,438.8
(16,540.3)
` in million
Year ended
March 31, 2018
(122.1)
15,391.1
16,888.1
1,433.4
(449.6)
(1,554.5)
108.4
(122.1)
16,303.7
16,303.7
(15,391.1)
-
(1,101.5)
232.2
1,123.7
(1,381.1)
1,929.7
203.7
(310.1)
1,798.1
1,255.2
1,000.0
1.00%
49.63%
44.91%
3.55%
0.91%
7.05%
(310.1)
602.5
275.0
1,113.1
(1,433.4)
(713.2)
155.5
241.8
(361.2)
983.8
3,000.0
0.88%
48.98%
43.48%
6.00%
0.66%
7.45%
1.50%
7.00%
8.00%
1.50%
7.00%
8.00%
Included in line item ‘Payments to and provision for employees’ of Schedule 16- Operating expenses.
Estimated rate of return on plan assets is based on the expected average long-term rate of return on investments of
the Fund during the estimated term of the obligations.
293
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Experience adjustment
Particulars
Plan assets
Defined benefit obligations
Amount not recognised as an asset
(limit in para 59(b) of AS 15 on
‘employee benefits’)
Surplus/(deficit)
Experience adjustment on plan
assets
Experience adjustment on plan
liabilities
Year ended
March 31,
2019
15,438.8
(16,540.3)
Year ended
March 31,
2018
16,303.7
(15,391.1)
Year ended
March 31,
2017
16,888.1
(16,686.9)
Year ended
March 31,
2016
13,191.6
(14,191.6)
` in million
Year ended
March 31,
2015
10,103.4
(12,999.9)
-
(1,101.5)
(310.1)
602.5
(125.9)
(449.6)
(68.4)
132.8
589.5
-
(1,000.0)
-
(2,896.5)
(4.1)
104.7
1,038.6
290.1
(80.0)
1,503.4
1,271.2
Gratuity
The following table sets forth, for the periods indicated, movement of the present value of the defined benefit
obligation, fair value of plan assets and other details for gratuity benefits of the Group.
Particulars
Opening obligations
Add: Adjustment for exchange fluctuation on opening obligation
Adjusted opening obligations
Service cost
Interest cost
Actuarial (gain)/loss
Past service cost
Obligations transferred from/to other companies
Benefits paid
Obligations at the end of the year
Opening plan assets, at fair value
Expected return on plan assets
Actuarial gain/(loss)
Contributions
Assets transferred from/to other companies
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 15 on
‘employee benefits’)
Asset/(liability)
Cost for the year1
Year ended
March 31, 2019
11,846.6
3.0
11,849.6
1,248.2
919.1
473.9
-
(7.4)
(1,166.3)
13,317.1
10,972.1
873.5
(62.0)
1,502.5
(7.4)
(1,166.3)
12,112.4
12,112.4
(13,317.1)
0.0
` in million
Year ended
March 31, 2018
11,172.6
0.4
11,173.0
1,178.2
775.8
(316.3)
16.1
33.4
(1,013.6)
11,846.6
10,443.4
830.2
(124.7)
803.4
33.4
(1,013.6)
10,972.1
10,972.1
(11,846.6)
-
-
(1,204.7)
-
(874.5)
294
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Particulars
Service cost
Interest cost
Expected return on plan assets
Actuarial (gain)/loss
Past service cost
Losses/(gains) on "Acquisition/Divestiture"
Exchange fluctuation loss/(gain)
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
Insurer managed funds
Government of India securities
Corporate bonds
Special Deposit schemes
Equity
Others
Assumptions
Discount rate
Salary escalation rate
Estimated rate of return on plan assets
1.
Year ended
March 31, 2019
1,248.2
919.1
(873.5)
535.9
-
-
3.0
-
1,832.6
811.5
1,138.0
` in million
Year ended
March 31, 2018
1,178.2
775.8
(830.2)
(191.6)
16.1
-
0.4
-
948.7
705.5
1,838.0
18.91%
24.24%
35.28%
2.40%
10.45%
8.71%
18.15%
22.50%
39.86%
2.66%
12.85%
3.98%
6.90%-7.80%
7.00%-10.00%
7.50%-8.00%
7.30%-7.85%
7.00%-10.00%
7.50%-8.00%
Included in line item ‘Payments to and provision for employees’ of Schedule 16- Operating expenses.
Estimated rate of return on plan assets is based on the expected average long-term rate of return 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) of AS 15 on
‘employee benefits’)
Surplus/(deficit)
Experience adjustment on plan
assets
Experience adjustment on plan
liabilities
Year ended
March 31,
2019
12,112.4
(13,317.1)
Year ended
March 31,
2018
10,972.1
(11,846.6)
Year ended
March 31,
2017
10,443.4
(11,172.6)
Year ended
March 31,
2016
8,361.6
(9,389.8)
` in million
Year ended
March 31,
2015
7,862.7
(8,470.2)
-
(1,204.7)
-
(874.5)
-
(729.2)
-
(1,028.2)
-
(607.5)
(62.0)
(124.7)
542.2
(398.1)
699.4
243.7
261.8
269.8
171.4
70.6
The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.
295
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Provident Fund (PF)
As there is no liability towards interest rate guarantee on exempt provident fund on the basis of actuarial valuation,
the Group has not made any provision for the year ended March 31, 2019 (year ended March 31, 2018: Nil).
The following tables set forth, for the periods indicated, movement of the present value of the defined benefit
obligation, fair value of plan assets and other details for provident fund of the Group.
Particulars
Opening obligations
Service cost
Interest cost
Actuarial (gain)/loss
Employees contribution
Obligations transferred from/to other companies
Benefits paid
Obligations at end of the year
Opening plan assets
Expected return on plan assets
Actuarial gain / (loss)
Employer contributions
Employees contributions
Assets transfer from/to other companies
Benefits paid
Closing plan assets
Plan assets at the end of the year
Present value of the defined benefit obligations at the end of the year
Asset/(liability)
Cost for the year1
Service cost
Interest cost
Expected return on plan assets
Actuarial (gain)/loss
Net cost
Actual return on plan assets
Expected employer's contribution next year
Investment details of plan assets
Government of India securities
Corporate Bonds
Special deposit scheme
Others
Assumptions
Discount rate
Expected rate of return on assets
Discount rate for the remaining term to maturity of investments
Average historic yield on the investment
Guaranteed rate of return
1.
Year ended
March 31, 2019
29,587.9
1,499.0
2,221.5
447.4
2,798.8
217.5
(3,489.7)
33,282.4
29,587.9
2,656.0
13.0
1,499.0
2,798.8
217.4
(3,489.7)
33,282.4
33,282.4
(33,282.4)
-
` in million
Year ended
March 31, 2018
26,198.8
1,380.7
1,757.2
501.7
2,619.1
354.5
(3,224.1)
29,587.9
26,198.8
2,274.0
(15.1)
1,380.7
2,619.1
354.5
(3,224.1)
29,587.9
29,587.9
(29,587.9)
-
1,499.0
2,221.5
(2,656.0)
434.4
1,498.9
2,669.0
1,605.8
48.63%
44.12%
1.63%
5.63%
1,380.7
1,757.2
(2,274.0)
516.8
1,380.7
2,258.8
1,479.1
47.65%
45.17%
1.84%
5.34%
6.95%-7.40%
8.21%-8.75%
7.30%-7.65%
8.48%-8.91%
8.65%-8.65%
7.35%-7.60%
8.18%-8.95%
7.55%-8.05%
8.28%-8.95%
8.55%-8.65%
Included in line item ‘Payments to and provision for employees’ of Schedule 16- Operating expenses
296
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Experience adjustment
Particulars
Plan assets
Defined benefit obligations
Amount not recognised as an
asset (limit in para 59(b)) AS 15
on‘employee benefits’)
Surplus/(deficit)
Experience djustment on plan
assets
Experience adjustment on plan
liabilities
Year ended
March 31, 2019
33,282.4
(33,282.4)
Year ended
March 31, 2018
29,587.9
(29,587.9)
Year ended
March 31, 2017
26,198.8
(26,198.8)
` in million
Year ended
March 31, 2016
23,209.5
(23,209.5)
-
-
13.0
447.4
-
-
(15.1)
501.6
-
-
(8.3)
310.5
-
-
27.1
252.5
The Group has contributed ` 2,842.6 million to provident fund including Government of India managed employees
provident fund for the year ended March 31, 2019 (year ended March 31, 2018: ` 2,663.0 million), which includes
compulsory contribution made towards employee pension scheme under Employees Provident Fund and
Miscellaneous Provisions Act, 1952.
Superannuation Fund
The Group has contributed ` 240.2 million for the year ended March 31, 2019 (year ended March 31, 2018: ` 219.8
million) to Superannuation Fund for employees who had opted for the scheme.
National Pension Scheme (NPS)
The Group has contributed ` 132.6 million for the year ended March 31, 2019 (March 31, 2018: ` 114.0 million) to
NPS for employees who had opted for the scheme.
Compensated absence
The following table sets forth, for the periods indicated, cost for compensated absence.
Particulars
Cost1
Assumptions
Discount rate
Salary escalation rate
1.
Year ended
March 31, 2019
888.6
` in million
Year ended
March 31, 2018
799.9
6.90%-7.80%
7.00%-10.00%
7.30%-7.85%
7.00%-10.00%
Included in line item ‘Payments to and provision for employees’ of schedule- 16 Operating expenses.
9. Provision for income tax
The provision for income tax (including deferred tax) for the year ended March 31, 2019 amounted to ` 17,191.0
million (March 31, 2018: ` 18,789.2 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 transactions
with international related parties and specified transactions with domestic related parties are primarily at arm's
length so that the above legislation does not have material impact on the financial statements.
297
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
10. Deferred tax
At March 31, 2019, the Group has recorded net deferred tax asset of ` 109,372.9 million (March 31, 2018: ` 78,183.0
million), which have 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 assets
Provision for bad and doubtful debts
Foreign currency translation reserve1
Others
Total deferred tax assets
Deferred tax liabilities
Special reserve deduction
Mark-to-market gains1
Depreciation on fixed assets
Interest on refund of taxes1
Others
Total deferred tax liabilities
Total net deferred tax assets/(liabilities)
1.
At
March 31, 2019
` in million
At
March 31, 2018
134,571.6
283.0
14,529.5
149,384.1
31,535.8
543.4
4,905.5
2,632.6
393.9
40,011.2
109,372.9
103,939.1
861.2
9,863.4
114,663.7
29,671.7
346.5
5,084.3
1,077.1
301.1
36,480.7
78,183.0
These items are considered in accordance with the requirements of Income Computation and Disclosure Standards (ICDS).
11. Information about business and geographical segments
A. Business Segments
The business segments of the Group have been presented as follows:
i.
ii.
iii.
iv.
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 Basel Committee on
Banking Supervision document ”International Convergence of Capital Measurement and Capital Standards:
A Revised Framework“. This segment also includes income from credit cards, debit cards, third party
product distribution and the associated costs.
Wholesale banking includes all advances to trusts, partnership firms, companies and statutory bodies, by
the Bank which are not included under Retail banking.
Treasury includes the entire investment and derivative portfolio of the Bank and ICICI Strategic
Investments Fund.
Other banking includes 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 and
ICICI Bank Canada.
v.
Life insurance represents results of ICICI Prudential Life Insurance Company Limited.
298
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
vi. General insurance represents results of ICICI Lombard General Insurance Company Limited.
vii. Others includes ICICI Home Finance Company Limited, ICICI Venture Funds Management 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 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.
All liabilities of the Bank 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.
The results of reported segments for the year ended March 31, 2019 are not comparable with that of
reported segments for the year ended March 31, 2018 to the extent new entities have been consolidated
and entities that have been discontinued from consolidation.
299
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
B. Geographical segments
The Group has reported its operations under the following geographical segments.
• Domestic operations comprise branches and subsidiaries/joint ventures in India.
•
Foreign operations comprise branches and subsidiaries/joint ventures outside India and offshore banking
units 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
Domestic operations
Foreign operations
Total
Assets
Year ended
March 31, 2019
1,248,986.2
64,078.8
1,313,065.0
At
March 31, 2019
10,719,652.3
1,457,041.0
12,176,693.3
` in million
Year ended
March 31, 2018
1,133,473.4
56,217.6
1,189,691.0
` in million
At
March 31, 2018
9,632,242.3
1,465,730.0
11,097,972.3
Domestic operations
Foreign operations
Total
Note: Segment assets do not include tax paid in advance/tax deducted at source (net) and deferred tax assets (net).
The following table sets forth, for the periods indicated, capital expenditure and depreciation thereon for the
geographical segments.
Capital expenditure
incurred during the
` in million
Depreciation provided during the
Year ended
March 31, 2019
10,704.5
324.4
11,028.9
Year ended
March 31, 2018
11,954.1
226.3
12,180.4
Year ended
March 31, 2019
9,273.8
184.6
9,458.4
Year ended
March 31, 2018
9,072.2
149.2
9,221.4
Domestic operations
Foreign operations
Total
12. Penalties/fines imposed by banking regulatory bodies
The penalty imposed by RBI and other banking regulatory bodies during the year ended March 31, 2019 was ` 10.0
million (year ended March 31, 2018: ` 627.2 million).
RBI through an order dated February 25, 2019, imposed a monetary penalty of ` 10.0 million on the Bank for delay
in compliance with RBI’s directives on “Time-bound implementation & strengthening of SWIFT related controls”.
302
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
13. Additional information to consolidated accounts
Additional information to consolidated accounts at March 31, 2019 (Pursuant to Schedule III of the Companies
Act, 2013)
Name of the entity
Parent
ICICI Bank Limited
Subsidiaries
Indian
ICICI Securities Primary Dealership Limited
ICICI Securities Limited
ICICI Home Finance Company Limited
ICICI Trusteeship Services Limited
ICICI Investment Management Company Limited
ICICI Venture Funds Management Company Limited
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Prudential Trust Limited
ICICI Prudential Asset Management Company
Limited
ICICI Prudential Pension Funds Management
Company Limited
Foreign
ICICI Bank UK PLC
ICICI Bank Canada
ICICI International Limited
ICICI Securities Holdings Inc.
ICICI Securities Inc.
Other consolidated entities
Indian
ICICI Strategic Investments Fund
Foreign
NIL
Minority Interests in all subsidiaries
Associates
Indian
I-Process Services (India) Private Limited
NIIT Institute of Finance Banking and Insurance
Training Limited
ICICI Merchant Services Private Limited
India Infradebt Limited
India Advantage Fund III
India Advantage Fund IV
Arteria Technologies Private Limited
Net assets1
% of total
net assets
Amount
` in million
Share in profit or loss
% of total
net profit
Amount
94.9% 1,083,680.4
79.1%
33,633.0
0.9%
0.9%
1.4%
0.0%2
0.0%2
0.2%
6.2%
5.0%
0.0%2
9,915.6
10,212.2
16,428.2
7.0
113.4
2,315.3
70,474.5
56,588.8
14.9
1.4%
11.5%
0.7%
0.0%2
0.0%2
1.6%
26.8%
24.7%
0.0%2
606.5
4,911.8
279.9
0.4
3.8
690.7
11,406.5
10,492.6
1.6
1.0%
11,184.4
16.1%
6,866.7
0.0%2
346.1
(0.0%)2
(17.2)
2.7%
2.6%
0.0%2
0.0%2
0.0%2
31,419.3
29,443.6
108.2
128.9
217.7
(8.7%)
6.6%
0.0%2
0.0%2
0.1%2
(3,696.6)
2,792.3
9.8
1.7
36.5
0.0%2
255.1
0.0%2
12.3
-
(5.8%)
-
(65,805.4)
-
(33.7%)
-
(14,349.2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0%2
0.0%2
1.8%
0.1%2
0.0%2
0.0%
4.7
1.1
766.6
39.6
1.6
2.8
303
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Name of the entity
Foreign
NIL
Joint Ventures
NIL
Inter-company adjustments
Total net assets/net profit
1. Total assets minus total liabilities.
2. Insignificant.
Net assets1
% of total
net assets
Amount
` in million
Share in profit or loss
% of total
net profit
Amount
-
-
-
-
-
(10.0%)
100.0%
-
(114,514.1)
1,142,534.1
-
(28.1%)
100.0%
-
(11,957.1)
42,542.4
Additional information to consolidated accounts at March 31, 2018 (Pursuant to Schedule III of the Companies
Act, 2013)
Name of the entity
Parent
ICICI Bank Limited
Subsidiaries
Indian
ICICI Securities Primary Dealership Limited
ICICI Securities Limited
ICICI Home Finance Company Limited
ICICI Trusteeship Services Limited
ICICI Investment Management Company Limited
ICICI Venture Funds Management Company Limited
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company
Limited
ICICI Prudential Trust Limited
ICICI Prudential Asset Management Company
Limited
ICICI Prudential Pension Funds Management
Company Limited
Foreign
ICICI Bank UK PLC
ICICI Bank Canada
ICICI International Limited
ICICI Securities Holdings Inc.
ICICI Securities Inc.
Other consolidated entities
Indian
ICICI Strategic Investments Fund
Foreign
NIL
304
Net assets1
Share in profit or loss
% of total net
assets
Amount
% of total net
profit
Amount
` in million
95.1% 1,051,589.4
87.9%
67,774.2
0.9%
0.7%
1.5%
0.0%2
0.0%2
0.2%
6.2%
4.8%
0.0%2
9,742.6
8,250.9
16,133.2
6.5
109.6
2,179.8
68,852.6
52,750.4
14.6
1.4%
7.2%
0.8%
0.0%2
0.0%2
0.1%
21.0%
11.2%
0.0%2
1,116.3
5,533.6
642.5
0.6
0.7
111.8
16,198.3
8,617.8
1.9
0.7%
8,233.3
8.1%
6,255.5
0.0%2
263.3
(0.0%)2
(6.6)
3.0%
2.5%
0.0%2
0.0%2
0.0%2
33,027.6
27,670.1
92.8
127.2
181.2
(2.1%)
2.9%
0.0%2
0.0%2
0.1%
(1,646.7)
2,222.6
4.6
0.1
43.6
0.0%2
231.3
0.0%2
13.3
-
-
-
-
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
Name of the entity
Minority interests
Associates
Indian
I-Process Services (India) Private Limited
NIIT Institute of Finance Banking and Insurance
Training Limited
ICICI Merchant Services Private Limited
India Infradebt Limited
India Advantage Fund III
India Advantage Fund IV
Foreign
NIL
Joint Ventures
NIL
Inter-company adjustments
Total net assets/net profit
1.
2.
Total assets minus total liabilities.
Insignificant
Net assets1
Share in profit or loss
% of total net
assets
(5.4%)
Amount
(60,081.9)
% of total net
profit
(18.0%)
Amount
(13,873.6)
` in million
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0%2
-
0.6%
0.0%2
0.0%2
-
2.9
-
432.5
10.9
(7.9)
-
-
-
(10.2%)
100.0%
-
(113,077.5)
1,106,297.0
-
(21.2%)
100.0%
-
(16,327.0)
77,121.9
14. Sale of equity shareholding in subsidiaries
During the year ended March 31, 2019, the Bank sold 2.00% of its shareholding in ICICI Prudential Life Insurance
Limited and made a net gain of ` 10,059.3 million on this sale.
During the year ended March 31, 2018, the Bank sold approximately 7.00% of its shareholding in ICICI Lombard
General Insurance Company Limited in the initial public offer (IPO) and made a net gain of ` 17,113.2 million on this
sale. Further, the Bank sold approximately 20.78% of its shareholding in ICICI Securities Limited in the IPO and made
a net gain of ` 32,081.6 million on this sale.
15. Divergence in asset classification and provisioning for NPAs
In terms of the RBI circular no. //DBR.BP.BC.No.32/21.04.018/2018-19 dated April 1, 2019, banks are required to
disclose the divergences in asset classification and provisioning consequent to RBI’s annual supervisory process
in their notes to accounts to the financial statements, wherever either (a) the additional provisioning requirements
assessed by RBI exceed 10% of the reported net profits before provisions and contingencies (15% of the published
net profits after tax for the year ended March 31, 2017) or (b) the additional gross NPAs identified by RBI exceed
15% of the published incremental gross NPAs for the reference period, or both. Based on the condition mentioned
in RBI circular, no disclosure on divergence in asset classification and provisioning for NPAs is required with respect
to RBI’s supervisory process for the year ended March 31, 2018 and for the year ended March 31, 2017.
16. Revaluation of fixed assets
The Bank and its housing finance subsidiary follow the revaluation model for their premises (land and buildings)
other than improvements to leasehold property as per AS 10 – ‘Property, Plant and Equipment’. The Bank had initially
revalued its premises at March 31, 2016 and its housing finance subsidiary revalued its premises at March 31, 2017.
In accordance with the policy, annual revaluation is carried out through external valuers, using methodologies such as
direct comparison method and income generation method and the incremental amount has been taken to revaluation
reserve. The revalued amount at March 31, 2019 was ` 57,631.2 million (March 31, 2018: ` 57,416.0 million) as compared
to the historical cost less accumulated depreciation of ` 26,926.8 million (March 31, 2018: ` 27,144.0 million).
The revaluation reserve is not available for distribution of dividend.
305
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
17. Proposed dividend on equity and preference shares
The Board of Directors at its meeting held on May 6, 2019 has recommended a dividend of ` 1 per equity share for
the year ended March 31, 2019 (year ended March 31, 2018: ` 1.50 per equity share). The declaration and payment
of dividend is subject to requisite approvals.
18. Dividend distribution tax
Dividend received from Indian subsidiaries, on which dividend distribution tax has been paid by them and dividend
received from overseas subsidiaries, on which tax has been paid under Section 115BBD of the Income Tax Act,
1961, have been reduced from dividend to be distributed by the Bank for the purpose of computation of dividend
distribution tax as per section 115-O of the Income Tax Act, 1961.
19. Adoption of IFRS-9 by ICICI Bank Canada
ICICI Bank Canada has adopted International Financial Reporting Standards (IFRS) 9- Financial Instruments for
preparation of its financial statements from January 1, 2018. Accordingly, for financial statements of ICICI Bank
Canada included in the consolidated financial statements, IFRS 9 has been adopted from April 1, 2018. The impact
of ` 263.0 million (CAD 5.1 million) on first time adoption of IFRS 9 has been adjusted and shown in Schedule 2-
Reserves and Surplus under balance in profit and loss account in the financials for the year ended March 31, 2019.
20. 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 on the consolidated financial statements and the information pertaining
to the items which are not material have not been disclosed in the consolidated financial statements.
21. Comparative figures
Figures of the previous year have been re-grouped to conform to the current year presentation.
Signatures to Schedules 1 to 18
As per our Report of even date.
For and on behalf of the Board of Directors
For Walker Chandiok & Co LLP Girish Chandra Chaturvedi
Chartered Accountants
ICAI Firm Registration no.:
001076N/N500013
Chairman
DIN-00110996
Khushroo B. Panthaky
Partner
Membership no.: 042423
Vishakha Mulye
Executive Director
DIN-00203578
Uday M. Chitale
Director
DIN-00043268
Vijay Chandok
Executive Director
DIN-01545262
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Anup Bagchi
Executive Director
DIN-00105962
Place: Mumbai
Date: May 6, 2019
Sandeep Batra
President
Ajay Mittal
Chief Accountant
Rakesh Jha
Group Chief Financial Officer
Ranganath Athreya
Company Secretary
306
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULES forming part of the Consolidated Accounts (Contd.)ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
STATEMENT PURSUANT TO SECTION 129 OF
COMPANIES ACT, 2013
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ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
STATEMENT PURSUANT TO SECTION 129 OF
COMPANIES ACT, 2013
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308
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
BASEL PILLAR 3 DISCLOSURES
at March 31, 2019
Pillar 3 disclosures at March 31, 2019 as per Basel III guidelines of RBI have been disclosed separately on
the Bank’s website under ‘Regulatory Disclosures Section’ on the home page. The link to this section is
http://www.icicibank.com/regulatory-disclosure.page.
The section contains the following disclosures:
• Qualitative and quantitative disclosures at March 31, 2019
• Scope of application
• Capital adequacy
• Credit risk
• Securitisation exposures
• Market risk
• Operational risk
•
Interest rate risk in the banking book (IRRBB)
• Liquidity risk
• Counterparty credit risk
• Risk management framework of non-banking group companies
• Disclosure requirements for remuneration
• Equities – Disclosure for banking book positions
• Leverage ratio
• Composition of capital
• Composition of capital – reconciliation requirements
• Main features of regulatory capital instruments
• Full terms and conditions of regulatory capital instruments
309
ANNUAL REPORT 2018-19INTEGRATED REPORTFINANCIAL STATEMENTSSTATUTORY REPORTS
GLOSSARY OF TERMS
ANNUAL REPORT 2018-19
Average of advances as reported in Form A to RBI
For the purpose of performance analysis, represents averages of daily
balances, except averages of foreign branches which are fortnightly
averages for the period till September 2014. From October 2014, averages
of foreign branches are also averages of daily balances
Cost of interest bearing liabilities
Average of deposits as reported in Form A to RBI
Quarterly average of equity share capital and reserves
For the purpose of business ratio, represents averages of total assets as
reported in Form X to RBI
Yield on interest earning assets
Total of average deposits plus average advances as reported in Form A to RBI
Average deposits plus average advances divided by number of employees
Share capital plus reserves divided by outstanding number of equity shares
Capital includes share capital, reserves and surplus (revaluation reserve
and foreign currency translation reserve are considered at discounted
amount), capital instruments and general provisions as per the RBI
Basel III guidelines
Capital (for CRAR) divided by Risk Weighted Assets (RWAs)
Net profit after tax divided by weighted average number of equity shares
outstanding during the year
Stock of liquid assets which can be readily sold at little or no loss of value
or used as collateral to obtain funds
Interest income divided by working funds
Average yield less average cost of funds
Stock of unencumbered high quality liquid assets divided by total net
cash outflows estimated for the next 30 calendar days
Total interest earned less total interest expended
Total interest earned less total interest expended divided by average
interest earning assets
Net profit after tax divided by number of employees
Non-interest income divided by working funds
Quarterly average of number of employees. The number of employees
includes sales executives, employees on fixed term contracts and interns
Profit before provisions and contingencies
Operating profit divided by working funds
Provision
non-performing advances
Net profit after tax divided by average total assets
Net profit after tax divided by average assets
Net profit after tax divided by average equity
RWAs are computed by assigning risk weights as per the RBI Basel III
guidelines to various on-balance sheet exposure, off-balance sheet
exposures and undrawn exposures
Average of total assets as reported in Form X to RBI
non-performing
advances
divided
gross
for
by
Average advances
Average assets
Average cost of funds
Average deposits
Average equity
Average total assets
Average yield
Business
Business per employee
Book value per share
Capital (for CRAR)
Capital to risk weighted assets ratio (CRAR)
Earnings per share
High quality liquid assets
Interest income to working funds
Interest spread
Liquidity coverage ratio
Net interest income
Net interest margin
Net profit per employee
Non-interest income to working funds
Number of employees
Operating profit
Operating profit to working funds
Provision coverage ratio
Return on assets
Return on average assets
Return on average equity
Risk weighted assets (RWAs)
Working funds
310
REGISTERED OFFICE
ICICI Bank Tower,
STATUTORY AUDITORS
Walker Chandiok & Co LLP
Near Chakli Circle, Old Padra Road,
16th Floor, Tower II,
Vadodara 390 007
Tel: +91-265-6722239
Indiabulls Finance Centre,
S B Marg, Elphinstone (W), Mumbai
CIN: L65190GJ1994PLC021012
Maharashtra 400 013
CORPORATE OFFICE
ICICI Bank Towers,
Bandra-Kurla Complex,
Mumbai 400 051
Tel: +91-22-33667777
Fax: +91-22-26531122
REGISTRAR AND TRANSFER AGENTS
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NOTES
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Designed for merchants to receive
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Pockets
ICICI Bank’s e-wallet for easy
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A convenient and secure remittances
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A N N U A L
R E P O R T
2 0 1 8 - 1 9
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A
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& I N SURANCE
F
M
HO P P ING OFFE
R
S
S
R A NSFER
S T
D
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F
INSTA F D
INSTA LOA N S
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