ICICI Bank has adopted a 360° approach to meet
evolving needs of its customers by decongesting its
processes, re-orienting its technologies and making
its HR practices more agile. Named ‘Customer 360°’,
the objective of this multi-dimensional approach is
to bring the entire Bank to the customer and offer
solutions to them as well as their ecosystems as per
their requirements.
We have products and services to meet banking
requirements of an individual customer at every life
stage. Likewise, we offer a complete suite of financial
products to the entire ecosystem of a corporate
or an institution comprising employees, dealers
and vendors. We strive to become the primary
banking service provider to each of our customers –
individuals, institutions or corporates.
We leverage our network of business centres, digital
channels, partnerships and presence across various
ecosystems to expand our customer base. Our
ecosystem branches house multi-functional teams
required to nurture relationships and bring the entire
bouquet of services of the Bank to the corporates and
their ecosystems.
The foundation of the Bank’s customer-centric and
service-oriented approach has been to develop
a granular profiling of markets through analytics,
intelligence and creating an efficient
market
distribution and resource allocation to
identify
opportunities across the country.
The three main pillars of ‘Customer 360°’ are Process
Decongestion, Bank to BankTech and HR Measures.
Process
Decongestion
HR
Measures
Bank to
BankTech
FAIR TO CUSTOMER, FAIR TO BANK
Process Decongestion
Improving operational efficiencies through digitised
processes and removing redundancies has helped
the Bank to reduce its response time for customers.
We continue to focus on reimagining processes to
deliver customer delight and enhance advocacy.
We are leveraging the power of subtraction in our
service delivery framework through simplification,
decongestion, abolition of non-value adding
processes, and digitisation of customer journeys and
processes. ‘Less is more’ is our mantra.
Through initiatives such as iLens (end-to-end loan
journey platform), onboarding of digital current
account using Video KYC, single enterprise level
CRM platform and Virtual Relationship Manager
(VRM) platform among others, we have improved
the servicing experience for customers. New-age
technologies and platforms such as TradeIntelli,
Neo Remittance System, next-gen phone banking
experience and digitisation of card life cycle are
empowering the Bank to serve customers with
simplicity.
We have taken several initiatives like digitisation
of the entire underwriting process with instant
loan approvals to provide better convenience and
smooth experience to our customers. Our growth in
the deposit franchise is supported by our continued
efforts to strengthen digital platforms and to simplify
various processes to provide a seamless banking
experience to customers.
leverage
The Bank has empowered frontline teams to
identify and
local opportunities. We
have also reduced the layers of management. The
objective of the combined approach is to make the
operating teams more flexible and agile in order
to offer improved services to customers while
operating within the guardrails of compliance
and risk.
Bank to BankTech
As the Bank is transforming itself from Bank to
BankTech, technology is assuming an integral role in
its business strategy. Our digital platforms – iMobile
Pay, iLens, InstaBIZ and Trade Online – provide
end-to-end seamless digital journeys, personalised
solutions and value-added services to customers
and enable more data-driven cross-sell and
up-sell. iMobile Pay and InstaBIZ also have open
architecture, enabling customers of other banks
to onboard seamlessly. We continue to enhance
our cybersecurity and invest in technology to
improve our offerings to customers.
We have enabled efficiency across business
and operational functions by adopting intelligent
automation
robotic
processes. They have reduced our turnaround
time, and increased our capacity for handling
transaction volumes and customer requirements.
platforms
including
HR Measures
We have taken steps to organise and structure
teams in a way to facilitate Customer 360°.
We invest in our employees to prepare them
take up challenging assignments and
to
responsibilities early in their career, and not
restrict themselves to specific areas. This helps
them to learn and develop expertise in different
job rotations and moving
domains through
across roles. The Bank continues to invest in
capability building through in-house functional
academies, industry academia initiatives as well
as specialised programmes.
We have created cross-functional teams to
tap into key customer and market segments
across ecosystems, enabling 360° coverage
of customers. We enable ‘Customer 360°’ by
working as one team across various departments
of the Bank by bringing together the strength
and expertise of our employees.
We have placed strong emphasis on ethics and
integrity as core values. We live the trust – the
most important currency – by giving the best
solutions to our customers. We expect all our
employees to act in accordance with the highest
professional and ethical standards.
Contents
INTEGRATED REPORT
Bank at a Glance
Financial Highlights
Message from the Chairman
Board of Directors
Message from the Wholetime Directors
Business Model
Our Business Strategy
Fair to Customer, Fair to Bank
Our Values
Risk Governance Framework
Responding to Risks and Opportunities
Materiality Assessment
Human Capital
Social and Relationship Capital
Environment and Sustainability
STATUTORY REPORTS
2
4
6
8
9
10
14
30
34
36
42
44
52
58
66
Directors’ Report
Auditors’ Certificate on Corporate
Governance
Management Discussion & Analysis
71
116
117
Key Financial Indicators: Last 10 Years
137
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
138
150
240
260
316
318
319
To view this report online, please visit
Investor Relations section on the ICICI Bank
website at www.icicibank.com
BANK AT A GLANCE
Annual Report 2022-23
`318.96 billion
Profit After Tax*
`424.73 billion
Profit Before Tax
Excluding Treasury Gains*
`621.29 billion
Net Interest Income*
4.48%
Net Interest Margin*
`15,842.07 billion
Standalone Total Assets
`11,808.41 billion
Total Deposits
`10,196.38 billion
Total Advances
18.34%
Total Capital Adequacy Ratio
* During fiscal 2023; others at March 31, 2023
2
`
More than 28 million users on
iMobile Pay
iMobile Pay,
ICICI Bank's mobile banking
application, has more than 28 million users. The
total value of transactions done through this app
stood at close to `9,000 billion in fiscal 2023.
Over 1.5 million users
on InstaBIZ
ICICI Bank has over 1.5 million active users on its
business banking app, InstaBIZ. Around 225,000
non-ICICI Bank account holders registered on this
app. Value of financial transactions on InstaBIZ
grew by 22% in fiscal 2023.
Trade Online transactions
grew by 47%
The value of transactions on the Trade Online
platform of the Bank grew by 47% in fiscal 2023.
Presence across the country
ICICI Bank has a nationwide network of 5,900
business centres
(branches), 16,650 ATMs
and Cash Recycler Machines, and 1,102 Insta
Banking Kiosks, at March 31, 2023.
Credit card spends grew by
60%
Retail credit card spends grew by 60%
fiscal 2023 compared to the previous year.
in
`
Over 51% business centres in
rural and semi-urban areas
More than half of the Bank's business centres, and
one-fourth of ATMs and Cash Recycler Machines
are based in rural and semi-urban areas.
UPI P2M transactions doubled
(P2M)
Value of UPI Person
transactions grew more than 100% in fiscal 2023
on the back of a 55% growth in volume of these
transactions.
to Merchant
IGBC certification
One-third of the Bank’s premises spanning over
4.42 million square feet was IGBC# certified as
at March 31, 2023.
`
Close to 29% market share in
FASTag
ICICI Bank continues to be one of the leading bank
in electronic toll collections through FASTag with
a market share of close to 29%. Our electronic toll
collections through FASTag increased by 28% in
fiscal 2023.
Financial assistance provided
to 10 million rural women
The Bank provided credit to 10 million rural
women through over 785,000 SHG loans at
March 31, 2023.
Supply Chain finance grew by
56%
The outstanding book of supply chain finance
business, including structured trade, grew 56% in
fiscal 2023.
Supporting over 400
hospitals
ICICI Bank supported over 400 hospitals
benefitting 1.5 million people by strengthening
healthcare infrastructure and improving health
facilities till date.
#The Indian Green Building Council (IGBC), part of the Confederation of Indian Industry (CII), is the country’s premier body for green
building certification. The ratings are awarded based on assessment of energy efficiency, use of renewable energy, water conservation,
waste management, indoor air quality and sustainable sourcing of material.
3
Integrated ReportStatutory ReportsFinancial Statements FINANCIAL HIGHLIGHTS
TOTAL DEPOSITS
TOTAL ADVANCES
11,808.41
10,645.72
6,395.79
9,325.22
5,008.99
5,461.35
7,709.69
6,529.20
4,231.51
3,289.79
2,276.71
2,455.91
2,954.53
3,599.57
3,797.76
962.70
1,022.27
1,361.70
1,584.80
1,614.86
10,196.38
3.3%
26.3%
7.1%
8.6%
54.7%
8,590.20
4.8%
27.2%
6.2%
8.9%
52.9%
7,337.29
5.1%
28.2%
5.1%
9.8%
51.8%
5,866.47
6,452.90
10.7%
29.2%
3.2%
8.5%
48.4%
8.4%
28.4%
4.1%
8.8%
50.3%
March
2019
March
2020
March
2021
March
2022
March
2023
March
2019
March
2020
March
2021
March
2022
March
2023
Current Account (` in billion)
Savings Account (` in billion)
Term Deposit (` in billion)
Total (` in billion)
Retail
Business Banking
Rural Loans
Domestic Corporate & SME
Overseas
Total (` in billion)
NET WORTH
CAPITAL ADEQUACY
1,705.12
1,475.09
2,007.16
16.89%
16.11%
1.80%
15.09%
1.39%
14.72%
19.12%
19.16%
18.34%
1.06%
18.06%
0.81%
18.35%
0.74%
17.60%
1,165.04
1,083.68
16.80%
17.60%
17.12%
13.63%
13.39%
March
2019
March
2020
March
2021
March
2022
March
2023
March
2019
March
2020
March
2021
March
2022
March
2023
Net Worth (Equity Share Capital, Reserves and Surplus)
(` in billion)
Tier I
Tier II
Common Equity Tier 1
Total
4
Annual Report 2022-23 FINANCIAL HIGHLIGHTS
NII & NIM
PROVISION COVERAGE RATIO
& NET NPA RATIO
621.29
82.8%
474.66
389.89
332.67
270.15
3.42%
3.73%
3.69%
3.96%
4.48%
70.6%
2.1%
79.2%
77.7%
75.7%
1.4%
1.1%
0.8%
0.5%
FY2019
FY2020
FY2021
FY2022
FY2023
March
2019
March
2020
March
2021
March
2022
March
2023
Net Interest Income (NII) (` in billion)
Net Interest Margin (NIM)
Provision coverage ratio (specific provisions as a percentage of gross NPAs)
Net NPA Ratio (based on customer assets)
PROFIT BEFORE TAX
EXCLUDING TREASURY GAINS
STANDALONE NET PROFIT
424.73
318.96
297.06
233.39
161.93
151.37
127.55
24.11
79.31
33.63
FY2019
FY2020
FY2021
FY2022
FY2023
FY2019
FY2020
FY2021
FY2022
FY2023
Profit Before Tax (` in billion)
Standalone Net Profit (` in billion)
5
Integrated ReportStatutory ReportsFinancial Statements
MESSAGE FROM THE CHAIRMAN
In fiscal 2023, the Indian economy continued to be
resilient despite slowdown
in the global economy
impacted by commodity prices, lockdown in China, surge
in global inflation and resultant monetary tightening by
global central banks. India’s GDP grew with sustained
improvement in underlying economic activity across
sectors along with higher credit off-take, buoyant
tax collection and continuation of government-led
investments. The services sector, including services
exports, rebounded and witnessed growth momentum.
However, global and domestic inflationary pressures,
especially in the wake of the situation in Ukraine, and
sharp tightening of monetary policy by central banks
globally led to monetary tightening by the Reserve Bank
of India with a series of repo rate hikes and withdrawal
of excess liquidity. Overall, the Indian financial sector has
been stable and resilient, as reflected in the improved
performance of banks, lower non-performing assets and
adequate capital and liquidity buffers.
During fiscal 2023, the Bank continued to focus on
profitable growth in business while maintaining a strong
balance sheet and robust liquidity. The Bank delivered
a healthy growth in profit along with improvement in
asset quality parameters. The Bank strengthened its
balance sheet with prudent provisioning, healthy capital
and optimal asset-liability management. The growth in
business was underpinned by the strategy to increase
market share across key segments while focussing on
micromarkets and ecosystems. The Bank aimed to grow
its franchise by leveraging its strong financial position
and well-recognised brand.
The focus on a 360º customer-centric approach with an
objective to serve customers in a holistic manner has
underpinned the Bank’s operations. The principle of ‘Fair
to Customer, Fair to Bank’ has further strengthened the
focus on customer-oriented initiatives and on long-term
value creation. Fairness, transparency and ethics are
core values in our dealings with all our stakeholders and
employees are required to exhibit desired behaviours
aligned to these ethos. The principle of ‘One Bank, One
Team, One ROE’ has enabled growth in key business
segments and increase in the Bank’s market share. Our
continued belief in these value drivers reflected in the
improved return to shareholders during fiscal 2023.
6
During fiscal 2023, the
Bank continued to focus on
profitable growth in business
while maintaining a strong
balance sheet and robust
liquidity. The Bank delivered a
healthy growth in profit along
with improvement in asset
quality parameters.
Annual Report 2022-23
MESSAGE FROM THE CHAIRMAN
Continuing on the journey from Bank to BankTech, the Bank
is constantly upgrading and strengthening the technology
infrastructure with a goal to make it secure, stable and
resilient. The Bank has undertaken multiple projects
across digital engagement platforms, which will provide
a competitive edge across business and operational
capabilities. The Bank seeks to be adaptable to digital
developments, innovations and evolving cybersecurity
issues. The Bank has shown agility in adopting and
adapting to new emerging trends and addressing risks
and opportunities.
The Bank’s commitment towards Environmental, Social
and Governance (ESG) was evidenced during fiscal
2023, with several initiatives taken as part of the
journey to achieving its sustainability objectives. The
focussed approach overseen by the Risk Committee
of the Board ensured consistent progress being made
across various areas. An important step was taken by
developing the Framework for Sustainable Financing,
which provides guidance on areas of sustainable and
sustainability-linked lending. Creating awareness and
capability building among all stakeholders is an ongoing
priority for the Bank. The focus on enhancing practices
and disclosures on ESG-related aspects has led to
improvement in the Bank’s ESG ratings.
The Bank strongly believes in creating a positive impact
on society, through its business as well as through its
corporate social responsibility (CSR) activities. The reach
of efforts made through the ICICI Foundation for Inclusive
Growth, touching every state and union territory of India,
is remarkable. The efforts are in areas critical to the
country’s development, including healthcare, environment
& biodiversity,
livelihoods and societal development.
The Bank is committed to continuing these initiatives that
have so far impacted about 10.9 million lives.
Governance and stability are top priorities for the
the articulated objective of
Board, underpinning
growing within the guardrails of risk and compliance.
In this regard, the Board has focussed on ensuring
competency and independence to contribute objectively
and responsibly towards the Bank’s progress. Ensuring
quality discussions and information sharing at the Board
level, and transparency in the disclosures of the Bank,
has been a priority for the Board. With a commitment
to the highest levels of corporate governance, the Board
continuously endeavours to strengthen various policies
and frameworks, and maintain oversight over risk
management, audit and compliances through various
Committees. The Board ensures that the assurance
functions have adequate independence and stature
to establish values and culture that are integral to
sustainable banking.
Looking ahead, global economic conditions continue to
remain uncertain, with monetary tightening by advanced
economies and unevenness in growth prospects in
various markets. However, India is well poised to grow
sustainably, benefitting from the results of reforms
undertaken and the vast potential of its economy. The
Bank will continue to focus on participating in profitable
opportunities and enhancing its franchise, underlined by
risk-calibrated growth and a focus on value creation for
all stakeholders.
We would like to thank all our stakeholders and look
forward to your continued support.
With best wishes,
Girish Chandra Chaturvedi
Chairman
7
Integrated ReportStatutory ReportsFinancial Statements BOARD OF DIRECTORS
BOARD MEMBERS
Girish Chandra Chaturvedi
Non-Executive (part-time)
Chairman
Hari L. Mundra
Independent Director
S. Madhavan
Independent Director
Neelam Dhawan
Independent Director
Radhakrishnan Nair
Independent Director
B. Sriram
Independent Director
Uday Chitale
Independent Director
Vibha Paul Rishi
Independent Director
Sandeep Bakhshi
Managing Director &
CEO
Rakesh Jha
Executive Director
Sandeep Batra
Executive Director
KEY PERSONNEL
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
BOARD COMMITTEES
Audit Committee
Uday Chitale, Chairman
S. Madhavan
Radhakrishnan Nair
Credit Committee
Sandeep Bakhshi, Chairman
Hari L. Mundra
B. Sriram
Rakesh Jha
Information Technology Strategy
Committee
B. Sriram, Chairman
Neelam Dhawan
Rakesh Jha
Sandeep Batra
8
Board Governance, Remuneration &
Nomination Committee
Corporate Social Responsibility
Committee
Neelam Dhawan, Chairperson
Girish Chandra Chaturvedi
B. Sriram
Girish Chandra Chaturvedi, Chairman
Radhakrishnan Nair
Uday Chitale
Vibha Paul Rishi
Rakesh Jha
Customer Service Committee
Fraud Monitoring Committee
Vibha Paul Rishi, Chairperson
Hari L. Mundra
Sandeep Bakhshi
Rakesh Jha
Risk Committee
S. Madhavan, Chairman
Girish Chandra Chaturvedi
Vibha Paul Rishi
Sandeep Batra
Radhakrishnan Nair, Chairman
S. Madhavan
Neelam Dhawan
Sandeep Bakhshi
Rakesh Jha
Stakeholders Relationship Committee
Hari L. Mundra, Chairman
Uday Chitale
Sandeep Batra
Annual Report 2022-23 MESSAGE FROM THE WHOLETIME
DIRECTORS
Our business strategy was led by a 360º customer-centric approach with an aspiration to
serve customers seamlessly across ecosystems, customer segments and micromarkets while
fostering a strong risk and compliance culture. We have further empowered our employees
with enablers for seamless engagement and better delivery of services to customers. The
Bank will continue to invest in process decongestion, digital capabilities, technology platforms,
distribution and security features to respond to the evolving opportunities and risks.
Our efforts will continue to be founded on the pillars of ‘One Bank, One Team, One ROE’,
‘Fair to Customer, Fair to Bank’ and paramountcy of return of capital. We strive to build a
culture of collaboration and teamwork wherein each employee upholds the ICICI values to
enhance Customer 360º propositions. Our goal is to serve customers with transparency and
integrity while creating value for our shareholders.
Sandeep Bakhshi
Managing Director & CEO
The Bank continues its strategy of 360° customer-centric approach through innovation
and adapting to the ever-evolving customer needs across segments and ecosystems. As
our business modes evolve digitally, trust, reliability and security remain the key anchors
that underpin our long-term profitable growth strategy. The principle of ‘One Bank, One
Team’ enhances the Customer 360° approach with key focus on execution. The Bank has
undertaken various initiatives to scale the franchise in terms of capacity, capability,
empowerment and deepening its presence in key micromarkets.
To enhance the corporate relationship including its stakeholders, the Bank focussed on
capturing opportunities across entire value chain by deep diving into the customer journeys
and providing integrated industry-specific solutions. The Bank offered new STACKS
additions of real estate, GIFT City, capital markets and custody, and a one-stop platform
for trade transactions. The Bank continued its approach of choosing right counterparty,
multi-channel distribution and taking entire Bank to the customer with a transparent and
best-in-class banking experience.
The Indian economy continued to show resilience amidst a volatile global environment in
fiscal 2023. During the year, we remained focussed on our strategic objective of growing our
risk-calibrated core operating profit through the 360° customer-centric approach, which was
supported by our process, technology, and HR measures. We continued to operate within our
strategic framework and strengthened our franchise, enhanced our delivery and servicing
capabilities, and expanded our technology and digital offerings.
We enabled our Customer 360° approach by working as one team across various
departments of the Bank, and bringing together the strength and expertise of our employees.
In fiscal 2023, we continued to implement suitable initiatives to reduce the carbon footprint
of the Bank. Through our philanthropic arm, ICICI Foundation for Inclusive Growth, we aim to
create an enduring impact on the society and environment. Our efforts on providing affordable
and accessible healthcare, creating rural livelihoods and supporting societal development
have made a difference to nearly 10.9 million lives till date.
Rakesh Jha
Executive Director
Sandeep Batra
Executive Director
9
Integrated ReportStatutory ReportsFinancial Statements BUSINESS MODEL
VISION
To be the trusted financial services provider of choice for our customers,
thereby creating sustainable value for our stakeholders.
CAPITALS
FINANCIAL CAPITAL
HUMAN CAPITAL
INTELLECTUAL CAPITAL
MANUFACTURED CAPITAL
SOCIAL AND RELATIONSHIP CAPITAL
NATURAL CAPITAL
10
Our ability to maintain a strong balance sheet and
enable business continuity, sustained growth, and
shareholder returns.
For further details, please refer to the Management
Discussion and Analysis section on page 117
Our competent workforce with diverse skill sets and
valuable experience.
For further details, please refer to the section on
Human Capital on page 52
Our ability to stay innovative and develop products
and services that provide superior experiences to our
customers.
For further details, please refer to the section on
Our Business Strategy on page 14
Our technology architecture along with the network of
branches, ATMs, cash recycler machines and digital channels
facilitates seamless delivery of services to customers.
For further details, please refer to the section on Our
Business Strategy on page 14
Our commitment towards social empowerment and a
financial ecosystem accessible to all.
For further details, please refer to the section on
Social and Relationship Capital on page 58
Our focus on minimising the impact on natural resources
through our operations and business.
For further details, please refer to the section on
Environment and Sustainability on page 66
Annual Report 2022-23 BUSINESS MODEL
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
n
In n o v a ti o
o m p l i a n c e
C
Fair to Custo
m
Credit
er, F
air t
o
a n d
c e C u l t u r e
n
k
R i s
p li a
m
o
C
Customer-Centricit
y
Enable wealth
creation and
management
Provide
savings
products
utation
p
e
R
gestion
n
o
c
e
D
s
s
e
c
o
r
P
l
a
g
e
L
L
e
v
e
r
a
g
i
n
g
Facilitate
payments and
transactions
Provide credit
to support
consumption
and economic
activity
I
n
t
e
g
r
i
t
y
T
e
c
h
n
o
l
o
g
y
Enable
financial inclusion
B
a
n
k
M
a
r
k
e
t
L
i
q
u
i
d
i
t
y
M
i
c
r
o
m
a
r
k
e
t
s
s
m
Ecosyste
P
artnerships
C
y
b
er
al
n
n
c ti o
a ti o
r
n
u
f
C r o s s -
C o l l a b o
p e ratio nal
O
E
O
R
e
n
m, O
e Te
a
n
One Bank, O
Information
Technolog y
Return of Cap i t a l
11
Integrated ReportStatutory ReportsFinancial Statements
BUSINESS MODEL
FINANCIAL
CAPITAL
HUMAN
CAPITAL
INTELLECTUAL
CAPITAL
MANUFACTURED
CAPITAL
VALUE DRIVERS
• Ensure a resilient balance sheet and strong capital levels
• Maintain robust funding profile
• Continue to strengthen portfolio quality
• Create value for shareholders
• Guided by ‘One Bank, One Team, One ROE’
• Enabling cross-functional collaboration
• Job rotation
• Continuous skill training and capability building
• Employee engagement
• Transforming Bank to BankTech
• Early adoption of emerging technologies enabling innovation
• Partnership with fintechs
• Focus on cybersecurity and data privacy
• Decongesting processes and improving customer experience
• 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
SOCIAL AND
RELATIONSHIP CAPITAL
• Engagement with customers, society and other stakeholders
• Participating in development efforts through the
ICICI Foundation for Inclusive Growth
• Empowering rural women entrepreneurs
• Financial inclusion
NATURAL
CAPITAL
• 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
12
Annual Report 2022-23 BUSINESS MODEL
OUTPUTS
OUTCOMES
Profit Before Tax
Excluding Treasury
Gains:
`424.73
billion
in fiscal 2023
Profit After Tax:
`318.96
billion
in fiscal 2023
Loans and Advances:
`10,196.38
billion
at March 31, 2023
Deposits:
`11,808.41
billion
at March 31, 2023
FINANCIAL CAPITAL
• Profit before tax excluding treasury gains grew by 43.0% and profit after tax by 36.7% on
y-o-y basis
• Granular portfolio mix with 73.5% of corporate loans to entities internally rated A-
and above
• Net NPA ratio decreased from 0.76% at March 31, 2022 to 0.48% at March 31, 2023
• Common Equity Tier 1 ratio of 17.12% at March 31, 2023
• Consolidated return on equity of 17.3% in fiscal 2023
HUMAN CAPITAL
• Frontline teams reorganised and empowered for enabling 360º customer engagement
and leveraging local opportunities
• Women comprised 32% of total employees at March 31, 2023
• Average person learning days of 12.2 days in fiscal 2023
• Diversity, equity and inclusion policy and human rights policy established to promote
a culture of no discrimination
• Strong industry-academia engagement to create a steady group of bankers with diverse skills
INTELLECTUAL CAPITAL
• Value propositions launched for ecosystem of start-ups, capital market participants and
students
• STACK for real estate sector launched in fiscal 2023; over 20 industry-specific STACKS
developed providing bespoke solutions to customers
• Over four million Amazon Pay credit cards issued till March 31, 2023
• More than 2,000 APIs for retail banking and 180 APIs for corporate banking introduced;
over 100 million financial and non-financial transactions per day
MANUFACTURED CAPITAL
• Transformed branches into business centres for enabling Customer 360º
• 482 business centres added during the year
• 13 exclusive business centres for ecosystem banking across Mumbai, National Capital
Region (NCR) and Kolkata
• Several initiatives towards enhancing and decongesting the onboarding and servicing
experience of customers undertaken during the year
SOCIAL AND RELATIONSHIP CAPITAL
• The ‘Orange Book’ series introduced in English and Hindi for educating customers about
personal finance
• Improvement in Bank’s Net Promoter Score continued across products and services
• `4.63 billion spent towards corporate social responsibility initiatives; focussed on
healthcare, environment and ecology, sustainable livelihood and societal development
• Continuing support to self-help groups and promoting women entrepreneurship
NATURAL CAPITAL
• Outstanding portfolio of `556 billion towards sustainable sector, of which 21.4% was
green financing to sectors like renewable energy, electric vehicles, green buildings and
water management at March 31, 2023
• Framework for Sustainable Financing, Supplier Code of Conduct and Green procurement
standards developed to strengthen the focus on environment
• Green certification of Bank’s premises increased from 23% of total area in fiscal 2022 to
34% in fiscal 2023
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Integrated ReportStatutory ReportsFinancial Statements OUR BUSINESS STRATEGY
One of the leading private sector banks in India, ICICI Bank
continues to focus on reimagining banking and leveraging digital
capabilities, anchored to our commitment to be a trusted financial
partner for our customers.
compliance and
the guardrails of
Fiscal 2023 saw the Bank continue to achieve profitable
growth in its business, strengthen its franchise and
invest in building capabilities for the future. The Bank
continued to grow its core operating profit less provisions
(i.e. profit before tax excluding treasury gains) led
by a 360º customer-centric approach and exploring
opportunities across ecosystems and micromarkets,
risk
within
management. The Bank’s core operating profit less
provisions grew by 43.0% during fiscal 2023 to
`424.73 billion. The Bank continued to grow
its
business with a focus on granularity and increased
the domestic loan portfolio by 20.5% year-on-year to
`9,855.29 billion. The Bank
further
enhancing the liability franchise, maintaining a stable
and healthy funding profile and a competitive advantage
in cost of funds. During fiscal 2023, the Bank continued
to maintain a strong balance sheet, with robust liquidity,
prudent provisioning and healthy capital adequacy.
The Bank’s capital adequacy ratios were significantly
above regulatory requirements as at March 31, 2023.
focussed on
return of
Financial parameters of
capital and
containment of provisions within targeted levels are
boundary conditions in the pursuit of opportunities and
growth. The Bank is also fostering a strong risk and
compliance culture to ensure a balance of risks and
rewards. Building trust with all stakeholders is critical to
the Bank’s growth.
The Bank’s efforts towards building a sustainable
business continued to be anchored by the principles of
'Return of Capital', 'Fair to Customer, Fair to Bank' and
'One Bank, One Team, One ROE'. The Bank lays strong
emphasis on serving customers with transparency and
offering suitable banking solutions, while maintaining
stringency
in counterparty selection. As the Bank
strengthens its digital capabilities and builds robust
technology platforms to support growth at scale, it
also focusses on investing in technology resilience and
responsible practices.
OUR APPROACH
360o
Customer-
centric
Approach
Focus on
Micromarkets
Focus on
Ecosystems
Collaboration
and External
Partnerships
Bank to
BankTech
Leveraging
Technology
and Digital
Process
Decongestion
and
Operational
Flexibility
Risk and
Compliance
Culture
Return of Capital
Fair to Customer, Fair to Bank
One Bank, One Team, One ROE
Maximising Profit Before Tax1
1 Excluding treasury gains
14
Annual Report 2022-23 OUR BUSINESS STRATEGY
BALANCED APPROACH WITH LONG-TERM COMMITMENT AND VALUE FOCUS
To identify micromarkets
which hold high potential
& increase market share by
serving customers with 360º
solutions of high relevance
To tap vibrant ecosystems,
engage with all key
stakeholders and deliver
customised solutions; to be
preferred banking partner
Micromarket
Approach
Ecosystem
Coverage
Digital as
Force
Multiplier
To leverage digital platforms
to offer best-in-class
experience to our customers
and to enable and empower
our teams
franchise and
Our investments in digital capabilities, enriched with
efficient delivery, strong
institutional
knowledge have enabled the Bank to gain market
share, and create new markets through ecosystems.
Attracting new customers and deepening wallet share
among existing customers to capture profit pools across
important
segments, sectors and ecosystems
focus. Creating end-to-end digital journeys on ‘Insta’
products along with the open-architecture design of
mobile applications and digital partnerships have enabled
its franchise and achieve
the Bank to differentiate
profitable growth.
is an
Delivering on the Customer 360º approach also requires
strengthening and streamlining processes for better
outcomes. The Bank is continuously making efforts to
redesign processes and leverage tech-based solutions
for more meaningful customer engagement. Underscored
by strong governance, controls and risk management,
the endeavour of the Bank is to deliver products and
services to customers in an appropriate manner. As
part of our Customer 360º approach, the Bank has
strengthened
terms of enabling
constructive customer engagement, decision-making
and accountability, thereby transforming branches into
business centres.
its branches
in
I. APPROACH TO CUSTOMERS
a. Focus on Customer 360º
Customer-centricity is a key element underpinning our
strategy to grow our business. Our approach begins
with developing a deep understanding of customer
needs, expectations and experiences. This understanding
translates
into products and solutions that offer a
holistic banking experience, and beyond. The approach
is to take the entire bank to the customer and offer
solutions that meet the current and future needs of the
customers and their ecosystems.
in developing digital customer
In the last three years, the Bank has made significant
strides
journeys and
platforms offering comprehensive banking services.
ICICI STACK was one such initiative that was launched
during the first wave of Covid-19 pandemic, enabling
customers to continue availing uninterrupted banking
services. This has been enhanced over the years,
and using ICICI STACK, the Bank is offering solutions
on digital platforms ensuring uninterrupted banking
experience for all types of customers. The Bank has
been creating intuitive customer journeys and offering
personalised solutions to suit their
life stage and
business needs. Services offered include instant digital
loan solutions, payment solutions,
account opening,
investments and insurance solutions.
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Integrated ReportStatutory ReportsFinancial Statements OUR BUSINESS STRATEGY
b. Focus on Micromarkets
At the core of ICICI Bank’s customer-centric and service-
oriented approach lies the in-depth profiling of each
micromarket. Key anchors of the micromarket approach
are data analytics, focus on aligned distribution, digital-first
and relevant delivery model. The research and knowledge
through analytics are used in conjunction with other factors
for planning, resourcing, channel and product alignment,
capability building and marketing and alliances. This helps
the frontline teams to understand the markets in which
they operate, and plan localised strategies with tailored
propositions for customers. Through this approach, the
Bank aims to realise the full potential of opportunities
across segments and sectors in each micromarket.
the Bank
insights have helped
Micromarket
in
identifying optimal locations for opening new business
centres and realigning the ATM and distribution network
based on customer needs and market opportunity. The
layouts, branding elements, staffing and capability
building in these business centres are based on various
market affinities. This has also helped the Bank to
focussed marketing campaigns targeted at
launch
specific customer segments and establishing alliances
with
locally relevant partners who add value to
our customers.
its approach to
The Bank has further sharpened
enhance
relationship management across markets
using Virtual Relationship Management (VRM). VRM
is a cloud-based AI-powered platform providing a
one-stop ecosystem for robust relationship building
with customers and thereby improving the efficiency
of relationship managers. The platform helps in relevant
and meaningful customer interaction with the help of
service and solution-based engagement.
In order to capture the growing markets in non-metro
locations, the Bank has merged the retail and rural
business groups. The organisational structure has been
strengthened with ‘State Business Heads’ to capture the
360° opportunity in these geographies. Cities with large
concentrated market opportunities have been organised
under ‘City Business Heads’ covering the full spectrum of
the ecosystem. All functions other than credit have been
aligned with the state/city business head to enhance our
on-field presence. Micromarket insights have also helped
in setting up Credit Business Centres (CBC) closer to
important markets for faster processing.
16
ICICI Bank's network at March 31, 2023
16,650
ATMs and Cash
Recycler Machines
5,900
Business Centres
(Branches)
1,102
Insta Banking Kiosks
c. Focus on Ecosystems
In order to further strengthen Customer 360º solutions,
fiscal 2023 specific customer ecosystem
during
propositions were launched for start-ups, capital market
participants and students.
The Bank
launched start-up ecosystem banking to
cater to the banking needs of start-ups across their life
stages through its domestic and international network,
and business centre at Gujarat International Finance
Tec-City (GIFT City). The Bank offers comprehensive
solutions in the areas of treasury, transaction banking,
lending, managing
investments and
foreign direct
regulatory compliances along with personal banking
services for employees and founders.
The Bank launched an array of digital solutions for
capital market participants and clients of custody
services. The solutions enable various participants
service
including brokers, portfolio management
Investors, Foreign Direct
providers, Foreign Portfolio
Investors and Alternative
to
seamlessly meet all their banking requirements.
Investment Funds
The Bank launched Campus Power, an online platform
providing various banking solutions such as
loans,
bank accounts, foreign exchange remittances and value-
added services to the student ecosystem for higher
education in India and abroad.
The Bank has created over 20 industry-specific STACKS
which provide bespoke solutions to meet specific needs
of these industries. The Bank aims to serve the entire
value chain of corporates ranging from channel partners,
Annual Report 2022-23 OUR BUSINESS STRATEGY
APPROACH TO ECOSYSTEM
Multiple Large Ecosystems
Execution Lever
Value Creation
Healthcare
Trade
Merchant
Capital Market
Education
E-Commerce
City
Start-up
Others
Omnichannel
Distribution
Customer
Journey
Customer
Organisational
Levers
Technology
and Data
Leveraging
Interlinkages in
Ecosystem
Lowering Cost
of Acquisition
Capturing
Customer 360°
dealers, vendors, employees and other stakeholders,
thereby taking the full bank to the customer. During fiscal
2023, the Bank launched STACKs for export and real
estate sectors. The export STACK, 'Digital solutions for
Exporters', is a comprehensive set of banking and value-
added services on a single platform. It aims to digitise the
entire export life cycle – from discovery of export markets,
export finance, foreign exchange services to receipt of
export incentives. The digital set of solutions include
services like Instant Export Packing Credit (InstaEPC),
trade accounts (Exchange Earners’ Foreign Currency
Account and One Globe Trade Account), paperless exports
solutions like e-Docs and e-Softex, foreign exchange
solutions, digital letter of credit facility (e-LC), electronic
bill of lading (e-BL), value-added services and Trade APIs.
The Real Estate STACK provides 360° banking solutions
for builders, non-banking financial companies, buyers
and Alternative Investment Fund / Real Estate Investment
Trusts. It offers banking solutions such as digital opening
of bank accounts and providing account number for
Real Estate Regulatory Authority (RERA) registration,
construction finance, inventory funding and lease rental
discounting to cater to their financial needs, depending
on the life cycle stage of a project. In addition, it enables
clients to manage their payment obligations to vendors,
employees, utility providers and statutory payments
efficiently. Further, it helps builders to manage their digital
collection, reconciliation, surplus distribution, custodial
services, collect rent through lease income and distribute
the surplus to the investors.
The Bank’s strategy in the merchant ecosystem space
involves onboarding merchants
through acquiring
platforms or by providing them payment gateways and
then cross-selling other financial products and services
seamlessly. The Merchant STACK offers a bouquet of
banking services, digital store management and other
value-added services to customers. The number of
active merchants grew by 43% year-on-year as at
March 31, 2023.
As at March 31, 2023, the Bank had 13 exclusive
business centres for ecosystem banking across Mumbai,
National Capital Region (NCR) and Kolkata. These
ecosystem business centres are full service centres that
house multi-functional teams with expertise required to
meet the needs of corporate customers and bringing the
entire bouquet of services of the Bank to these corporates
and their ecosystem.
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Integrated ReportStatutory ReportsFinancial Statements OUR BUSINESS STRATEGY
START-UP ENGAGEMENTS
Co-creating Innovative
Products in Key Focus Areas
Drivers for Growth
Payments
Lending
Customer Experience
Enablers
Risk Management
Create New Business Opportunities
Increase Efficiency
Enhance Customer Experience
Risk Mitigation
Enhance risk-taking
ability & experimentation
Build a culture of innovation
d. Collaborations and Partnerships
Collaborating within the organisation and building
partnerships across the value chain is a key focus area.
Partnerships with technology companies and platforms
with large customer bases and operational excellence
offer unique opportunities for growth and enhancing
service delivery and customer experience.
The Bank has key partnerships with Amazon,
MakeMyTrip and Emirates to offer co-branded credit
cards. Amazon Pay credit cards continued to see
healthy traction with over four million credit cards
issued till March 31, 2023. The Bank aims to provide
360° solutions to the new-to-bank customers that
have been acquired through Amazon Pay credit cards.
The growth in credit card transactions was driven by
higher activation rate through digital onboarding of
customers, acquiring progressive profile customers,
effective portfolio management.
automated and
The Bank has not only pioneered the usage of FASTag
for payments at various national, state highway,
toll plazas but also expanded use cases to parking
payments at airports, malls, hospitals and tech parks
across the country. The Bank has also continued its
growth in value of UPI acquiring transactions by growing
faster than the ecosystem.
The Reserve Bank of India launched the first pilot for
retail digital rupee in December 2022, and ICICI Bank
was one of the banks to participate in this pilot.
The value of credit card transactions in fiscal 2023 was 1.3 times the value in fiscal 2022
A leader in FASTag with a market share of about 29% in fiscal 2023; collections through FASTag higher
by 28% year-on-year in fiscal 2023
•
•
18
Annual Report 2022-23 OUR BUSINESS STRATEGY
invests
The Bank collaborates with and
in fintech
start-ups and co-develops products aligned with the
Bank’s digital roadmap. The Bank’s Start-up Engagement
and Investment team has been at the forefront to leverage
innovation in the start-up and technology ecosystem.
The engagements with the start-ups are focussed on
lending, customer experience, risk
payments, digital
management and platforms. The Bank is also offering a
host of APIs and Software Developer Kits (SDKs) which
facilitate third-party apps to offer payment solutions for
their retail customers.
With opportunities arising out of digital adoption,
government’s push and creation of large scale digital
public infrastructure, the Bank envisions banking and
financial services becoming omnipresent and centrepiece
of every transaction. Partnerships with start-ups help
enable quicker adoption of new-age technologies at
scale such as Artificial Intelligence and Machine Learning,
blockchain, computer vision, cloud computing and more.
Additionally, new-age tools and solutions help mitigate
risks such as cyber threats and social frauds, arising
out of the growing digital ecosystem. In this context,
the Bank has adopted a technological approach that
enables it to respond to the changing dynamics in an
agile and responsive manner.
II. APPROACH TO DIGITAL,
TECHNOLOGY AND PROCESSES
a. Digital Platforms and Solutions
journey to strengthen
The Bank has endeavoured to help customers to
transact on digital platforms by
launching many
user-friendly payment solutions. The Bank continued on
its
its position by designing
seamless, simple and secure experiences for customers,
facilitating higher volumes of transactions and prompting
recurrent digital transactions. The open architecture
platforms have enabled the Bank to extend banking
services to non-ICICI Bank account holders. Digital
channels continue to account for over 90% of financial
and non-financial transactions.
CUSTOMISED
SOLUTIONS
iMobile Pay
InstaBIZ
Insta EPC
FXOnline
Trade Emerge
OneSCF (Supply Chain)
iLens
API Banking
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Integrated ReportStatutory ReportsFinancial Statements OUR BUSINESS STRATEGY
iMobile Pay: One App Strategy
The Bank’s iMobile Pay open architecture based mobile
application provides seamless and end-to-end digital
journeys. It is centred on providing a comprehensive
and unified banking experience to customers through
a single mobile application. This strategy entails
integrating various banking services,
features and
functionalities into one cohesive app, allowing customers
to access and manage
their accounts, perform
transactions, avail of financial products and services
and engage with the Bank seamlessly. The coverage
of iMobile Pay app has expanded to standalone asset
customers, credit card customers and non-ICICI Bank
account holders. Video KYC continued to empower
retail customers to complete ‘Know Your Customer’
(KYC) process through video interaction within a few
minutes. Video KYC is live for 16 products, including
re-KYC.
The features
‘Scan to Pay’
‘Pay to Contact’ and
introduced in fiscal 2022 continued to drive payments
growth in fiscal 2023. Other features introduced on
iMobile Pay include the personal finance management
solution, a unique personal finance, expense and budget
management tool to engage with customers digitally
and help them manage their finances effectively. The app
also introduced a ‘One view card’, a dedicated card in
the app, where customers can see all pre-approved
loans and card offers in one click. There are over 400+
services on the app, with a unique voice search that makes
navigation across these services quick and convenient.
iMOBILE PAY – BUILT FOR ALL, BUILT FOR SCALE
i
s
e
c
v
r
e
S
g
n
k
n
a
B
i
Savings Account
Pay to Contact
Demat
Loan
Cards
9 million+
Activations from
Non-ICICI Bank
account holders
P
a
y
m
e
n
t
S
e
r
v
c
e
s
i
Scan to Pay
Bill Payment
Recharges
FASTag
•
The volume of UPI Person to Merchant (P2M) transactions increased by 55.0% year-on-year in
fiscal 2023 and the value of these transactions was 2.1 times the value in fiscal 2022
•
The Bank has increased its market share in value of UPI P2M transactions to 19.3% in March 2023
20
Annual Report 2022-23
OUR BUSINESS STRATEGY
iLENS – DIGITAL LOAN MANAGEMENT SYSTEMS
Leveraging Digital Collaborations
Access Through Mobile App
Real-Time Loan Status Tracker
Enhanced Customer
Experience
s
n
erif cati o
V
Decisi
o
n
i
n
g
iLENS
Robust Risk
Management
Framework
O
n
b
o
a
r
ding
al
D isburs
Operational Efficiency
iLens
is an
industry-first end-to-end digital
iLens
lending
platform covering all stages, starting from application
to disbursement with the objective of providing superior
transaction experience and enhanced operational
efficiency. It is built on the Bank’s philosophy of open
architecture. It is a future-ready solution which harnesses
digital collaborations from fintech ecosystem. It is a device
responsive platform with flexibility to access from mobile/
tablet (Android and iOS both) and provide on-the-go
retail lending solution with its mobile application.
It offers a wide range of digital solutions like instant
sanctions to existing as well as new-to-bank customers,
digital disbursements (e-sign and e-stamp) and digital
KYC verifications. It is enabled with an in-house robust
rule engine facilitating efficient decisioning and standard
implementation of various policy, process and regulatory
norms.
iLens has an inbuilt customer interface 'TrackMyLoan'
through which the customers can track real-time status
of their loan application, submit documents, respond
to queries and access various communications and
documents like sanction letter, fees acknowledgement.
Mortgage is the first retail product which went live
on iLens platform and other retail products are in the
process of being onboarded. This is expected to further
enable the Bank to provide enhanced customer experience
and increase its ability to capture the entire Customer
360° ecosystem in a frictionless and digital way, thereby
creating value for customer and the Bank.
InstaBIZ: Universal App for Small Businesses
InstaBIZ is a one-stop solution for all banking needs
(SME),
to small and medium enterprises
catering
individuals, proprietors and merchants. The Bank has
seen an increase in the engagement level of customers
on the InstaBIZ app.
is
InstaBIZ app
line with evolving trends of shift towards open
In
architecture, the
interoperable and
is available to both ICICI Bank customers and non-
customers for availing the multiple product offerings.
Any customer can now open current account instantly
through video KYC via seamless paperless
journey.
The digital process uses the private lender’s APIs that
auto fills the account opening form, instantly validates
PAN/Aadhaar number and allows the opening of
account through Video KYC. Non-ICICI Bank customers
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InstaBIZ – BUSINESS BANKING SUPER APP
SME
Exporters
Individual/
Proprietors
Merchant
(EazyPay)
New to Bank
(NTB)
• Over 1.5 million active users as of March 31, 2023
• About 225,000 registration by non-ICICI Bank account holders
using feature of InstaOD plus can get instant sanction
of collateral-free loan up to `2.5 million, which can be
availed post opening of current account.
Customers can also access the digital platform, Trade
Emerge which offers solutions beyond banking for cross-
border trade. Through alliance partners,
it provides
services like business incorporation, regulatory guidelines,
partner discovery and logistics and cargo tracking. The
‘Manage and Grow your Business’ section within InstaBIZ
is powered by multiple banking partners for accounting,
taxation, analytics and networking. Customers can enjoy
the feature of auto-reconciliation with accounting partners,
which gives the customer a single click experience for all
his business needs without having to manage between
different platforms.
Digital Platforms and Solutions for Corporate
Customers
ICICI Bank offers digital products and services for large
corporates and their ecosystems including platforms for
domestic and international trade and industry-specific
solutions across the value chain. The Bank has created
more than 20 industry-specific STACKs which provide
bespoke and purpose-based digital solutions to corporate
clients and their ecosystems. The four main pillars of
ICICI STACK for corporates includes digital banking
solutions for companies; digital banking services for
channel partners, dealers and vendors; digital banking
services for employees; and curated services for senior
client personnel.
During the year, ICICI Bank launched Instant Export
Packing Credit (Insta EPC) an industry-first product aimed
at instantly and digitally meeting the export finance
requirements of exporters and ensuring no disruptions in
supply chain. The process automates the entire scrutiny
cycle through integrations with various internal and
external applications. This ensures that disbursement
happens ‘@click’. Electronic Bank Guarantee (eBG) is an
Application Programming Interface (API) based digital
workflow, in partnership with National E-Governance
Services Limited, which eliminates physical issuance,
stamping, authentication and paper intensive record
maintenance of bank guarantees. eBG will revolutionise
the way bank guarantees are traditionally being issued
and stored. The Bank’s Trade Online platform allows
22
Annual Report 2022-23 OUR BUSINESS STRATEGY
customers to perform most of their trade finance and
foreign exchange transactions digitally. The value of
transactions on the Trade Online platform grew by
47% year-on-year in fiscal 2023.
accounts. To give a one-stop solution for all statutory
requirements of the customer, the Bank facilitates
various online solutions for central and state mandate
like direct tax, Goods and Services Tax (GST), custom
duty and various other tax payments.
is a
financing
focus area
the Bank's coverage of
towards
Supply chain
the corporate
deepening
ecosystem. The wide range of supply chain and
structured trade products offer a one-stop solution to
corporate clients and their supply chain partners, helping
in optimising their working capital needs and increasing
efficiencies
in their ecosystem. These supply chain
solutions are offered digitally through various platforms
namely OneSCF, FSCM, CorpConnect and DigitalLite,
wherein corporates can seamlessly manage their supply
chain
requirements of payments, collections, data
reconciliation and customised dashboards in a paperless
environment thereby bringing
in the
corporates supply chain management.
in efficiencies
The Bank has a strong focus on integrating banking with
corporate ERP system using API not only for financial
transactions but also for non-financial transactions.
fixed deposit creation, bank
Few of
reconciliations, holding collections then validating with
ERP and confirming before crediting to corporate bank
these are
Digital Solutions for Non-Resident Indians
Indians
(NRI) banking continues
Non-Resident
to
be a key growth driver for the Bank’s international
banking business. The Bank launched the NRI Program
Banking framework to renew the perspective from a
liabilities based approach only to a more comprehensive
Customer 360° approach. The framework encompasses
various aspects of financial and non-financial needs for
the entire family.
The Bank introduced a new bouquet of credit cards
for NRI customers to enable them with their international
and domestic spends while meeting their aspirations.
Smart-Wire (for SWIFT based online transfers) has
been made live for customers on Retail Internet Banking
and iMobile Pay, enabling the customers to submit the
declarations digitally, book the foreign exchange deal
and track the remittance status.
Exports
Digital banking
solutions for entire
exports life cycle
Banking solutions for
Start-ups and Funds
from GIFT City
GIFT City
Real
Estate
Comprehensive set
of banking solutions
for Builders, NBFC,
Buyers, AIF/REITs
CORPORATE
STACK
Set of digital banking
solutions for end-to-
end requirements of
IT/ITES companies
Software
Services
Capital
Markets &
Custody
An array of digital
solutions for participants
of the capital market and
clients of custody services
Offering suite of digital
banking solutions for
pharma companies
across value chain
Pharma
20+ STACKs providing bespoke & purpose-based digital solutions to corporate clients in their ecosystem
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Integrated ReportStatutory ReportsFinancial Statements OUR BUSINESS STRATEGY
leveraged
the
The National Payments Corporation of India (NPCI)
enabled payment platform, Unified Payments Interface
to enable cross-border
(UPI) has been
remittances
India-Singapore corridor, with
for
ICICI Bank being one of the six banks identified by RBI
for this pilot project. This enables seamless and instant
payment to and from Singapore for transactions up
to SGD 1,000 in a day for family maintenance and gift.
The Bank continued leveraging iMobile Pay channel
for outward remittances by focussing on existing and
new-to-product customers with the initiative of sending
confirmation to the remitters for credit to beneficiaries
making it easy for tracking the update on the outward
remittance transactions.
the Bank
fiscal 2023,
During
launched a new
platform, Neo Remittance System (NRS) for outward
remittances by business centres with advanced
like rate booking and smart repeat
functionalities
transactions for transfers by both, residents (including
non-account holders) and non-residents.
b. Transforming into BankTech
In fiscal 2023, the Bank continued to progress on its
journey from Bank to BankTech with data serving as
the foundation for informed decision-making leading
to the creation of comprehensive value propositions
and enhanced experience for customers. ICICI Bank is
constantly upgrading and strengthening the technology
infrastructure with a goal to make it secure, stable and
resilient. This encompasses expanding online banking
services, leveraging data analytics to extract valuable
insights and improve decision-making and embracing
emerging technologies like Artificial Intelligence (AI) and
Blockchain. The Bank’s wide range of digital offerings
including the rapidly growing digital transactions, the web
of interconnected platforms, applications and databases
requires a robust technology architecture, which revolves
around the four pillars of scalability, availability, resiliency
and security.
The key priorities that dominate the Bank’s technology
requirements include its technology platforms, embedded
banking, cloud adoption and data platforms and analytics.
Direct & Embedded
Omnichannel Experience
Hyper-Personalised
Consistent UX
Engagement
Layer
API Gateway
Micro-Services
Workflows
Rules & Logic
Digital Engagement Hub
Payments
Federation
Layer
THE BANKtech
ARCHITECTURE
Records
Layer
Core System
Enterprise Platforms
Portfolio Management
'Hollow the Core'
Enterprise Data Platform
Master Data Management
Marketing Technology
Data Democratisation
Data and
Intelligence
Document Intelligence
Conversational Intelligence
Robotic Process Automation
Generative Al
24
Annual Report 2022-23 OUR BUSINESS STRATEGY
The Bank has over 2,000 APIs for retail banking and
nearly 200 APIs for corporate banking, with over
100 million financial and non-financial transactions
per day.
As a part of the Bank’s technology strategy, it is creating
an enterprise architecture framework across digital
platforms, data and analytics, micro services based
architecture, cloud computing, cognitive intelligence and
other emerging technologies.
Each facet of the architecture considers basic foundational
elements of scalability, modularity, agility, availability and
resilience besides being cloud native and digitally native.
Technology advancements in cloud computing, data
sciences and generative AI are redefining customer
engagement opportunities. Business process optimisation
through adoption of intelligent automation platforms
including robotic processes have enabled efficiency
across business and operational functions. These have
brought about faster turnaround time besides enabling
increased capacity for handling transaction volumes and
customer requirements.
The changing technology landscape along with increased
channels of interaction also mean increased focus on
information security across various aspects of technology
beginning from data centre to the cloud to the entire
technology supply chain. While speed and quality continue
to remain focus of technology delivery, DevSecOps has
enabled integrate information security along the life cycle.
The integrated approach to security enables the Bank to
respond to changing dynamics in an agile and responsive
manner.
Over
2,000
Over
180
APIs for Retail Banking
APIs for Corporate Banking
Over
100 million
Financial and non-financial transactions per day
The Bank has a dedicated data science and analytics
team that works across business areas on projects
to business analytics, decision strategies,
relating
forecasting models, machine learning, rule engines and
performance monitoring. We maintain a comprehensive
enterprise-wide data warehouse and employ statistical
and modelling tools for leading-edge analytics.
c. Building Efficiencies and Flexibility
removing
redundancies
through digitised
Improving operational efficiencies
processes and
in serving
customers has been providing significant opportunities for
the Bank to strengthen the response time to customers. In
fiscal 2023, the Bank increasingly focussed on delivering
customer delight and enhancing advocacy by reimagining
processes and customer experiences. The Bank aimed to
leverage the power of subtraction in its service delivery
framework
through deletion of non-value adding
processes, simplification, decongestion and digitisation
of customer journeys and processes. The onboarding and
servicing experience has been enhanced through initiatives
such as iLens (end-to-end loan journey platform), digital
current account onboarding using video KYC, single
level CRM platform, Virtual Relationship
enterprise
Manager (VRM) platform etc.
In addition, new-age
technologies and platforms such as TradeIntelli, Neo
Remittance System, next-gen phone banking experience
and digitisation of card life cycle are being harnessed to
enable the Bank to serve customers with simplicity.
For more details refer to page 30
III. APPROACH TO CULTURE
a. One Bank, One Team, One ROE
The principle of 'One Bank, One Team, One ROE',
emphasises the need to maximise the Bank’s share of
the target opportunity across all products and services.
The Bank has taken steps to organise and structure
teams in a way which facilitates the Bank’s approach to
Customer 360°. The Bank has also invested in aligning
the organisation around micromarkets and customer
ecosystems by
leadership
in key markets. The cash component of variable pay
(performance bonus) is aligned to the philosophy of 'One
Bank One Team' as it is based on overall performance
of the Bank and reflects reward for team performance.
increasing the density of
25
Integrated ReportStatutory ReportsFinancial Statements OUR BUSINESS STRATEGY
across
functional
The Bank’s focus on Customer 360° banking requires
employees
to have multi-product knowledge and
skills. The Bank has invested in training its employees
and enhancing their ability to comprehensively serve
customers. The Bank has a capability building architecture
spanning
leadership
development, digital and industry-academia programmes
to equip employees with
required skillsets.
Additionally, job rotation enables employees to seek a
wider perspective of banking products and services, and
go beyond their defined roles to spot opportunities for
360° customer experiences. The Bank continues to expand
business opportunities across all customer segments
within the guardrails of the Bank’s risk and compliance
framework.
training,
the
For more details refer to page 52
b. Fair to Customer, Fair to Bank
The principle of
‘Fair to Customer, Fair to Bank’
emphasises the need to deliver fair value to customers
while creating value for shareholders, which would guide
the Bank’s operations. The Bank seeks to sell products
and offer services which meet societal needs and are
in the interest of our customers. The Bank also strives
to enable its employees to keep delivering a seamless
customer experience.
For more details refer to page 30
c. Risk and Compliance Culture
ICICI Bank recognises the importance of establishing an
effective framework and supporting processes so that
all employees seek to exhibit values aligned to the risk
and compliance culture policy. The aim is to uphold a
strong risk and compliance culture throughout the Bank.
The Risk and Compliance Culture Policy establishes the
guiding principles and the framework for implementation
of the same.
For more details refer to page 34
KEY AREAS OF BUSINESS
Retail
The retail business continued to be a key driver of growth
in fiscal 2023, as we pursued a strategy of building a
26
diversified and granular loan portfolio. The Bank’s retail
portfolio grew by 22.7% year-on-year to `5,578.17 billion
at March 31, 2023. Retail loans accounted for 53.9% of
total loans, and including non-fund based outstanding,
the share was 45.7% in the total portfolio. The Bank has
undertaken several initiatives to offer a convenient and
frictionless experience to customers by digitising the entire
underwriting process, with instant loan approvals.
The Bank continued to maintain a robust funding profile
with strong growth in the deposit base. Total deposits
increased by 10.9% year-on-year to `11,808.41 billion
at March 31, 2023. Savings account deposits, on a daily
average basis, grew by 13.3% year-on-year in fiscal
2023. Current account deposits, on a daily average
in fiscal 2023.
basis, grew by 13.5% year-on-year
Term deposits grew by 17.1% year-on-year
to
`6,395.79 billion at March 31, 2023. The growth in the
deposit franchise was supported by ongoing efforts to
strengthen the Bank’s digital platforms and process
simplification to provide a seamless banking experience
to customers.
Rural and Inclusive Banking
the
The Bank's strategy to serve the rural segment of
economy is based on the integrated nature of the rural
ecosystem. The operational structure and offerings put
the Bank in a unique position to leverage opportunities
in different ecosystems within
rural markets.
The Bank offers a diverse set of products catering to end-
to-end needs in the value chain. These products include
working capital loans for growing crops and financing
of post-harvest activities, term loans including farm
equipment loans, financing against warehouse receipts,
loans against gold jewellery, along with personal loans,
affordable housing finance and auto and two-wheeler
loans. The Bank also provides consumption loans for
low-income customers. Financial solutions are offered to
micro-finance institutions, self-help groups, co-operatives
constituted by farmers and corporations and Small
and Medium Enterprises engaged in agriculture-linked
businesses. The Bank’s rural portfolio grew by 13.8%
year-on-year to `874.31 billion at March 31, 2023.
The Bank has identified four main ecosystems in the rural
market, which include farmers, dealers, self-employed
persons and micro-entrepreneurs with comprehensive
banking solutions offered across these ecosystems.
Annual Report 2022-23 OUR BUSINESS STRATEGY
The Bank’s reach in rural areas comprises a network
of business centres, ATMs, field staff and business
correspondents providing last-mile access in remote
areas. Of the Bank’s network of 5,900 business centres,
51% are in rural and semi-urban areas with 651 business
centres
in villages that were previously unbanked.
There were 4,299 ATMs and cash recycler machines at
semi-urban and rural centres at March 31, 2023 having
a proportion of 25.8% of pan India ATMs and cash
recycler machines.
For information on the Bank’s financial inclusion and rural
development initiatives refer to page 58
The growth in the portfolio was driven by the Bank’s
approach of catering to 360° needs of customers across
business life cycle ranging from onboarding, payment
& collection, cross-borders, account
reconciliation
besides working capital requirements. Envisaging these
customer requirements, the Bank devised comprehensive
digital solutions & platforms which are also fulfilled
through Do-it-Yourself and Do-It-for-Me through our
business centres, InstaBIZ mobile apps and the Bank’s
website and also partner websites.
In addition, a
dedicated Relationship Manager also provides the
customers full 360° solutions.
Small and Medium Enterprises and
Business Banking
The Small and Medium Enterprises (SMEs) portfolio
comprises exposures to companies with a turnover
of up to `2.50 billion. The Bank’s business banking
portfolio comprises small business customers with
loan ticket size of `10.0-15.0 million.
an average
The business banking portfolio grew by 34.9% to
`721.12 billion and accounted for 7.0% of the overall
portfolio at March 31, 2023. The Small and Medium
Enterprises segment grew by 19.2% to `482.21 billion
and accounted for 4.7% of the overall portfolio.
The growth in the SMEs portfolio is driven by the Bank’s
approach of catering to 360° need of customers across
business life cycle.
The Bank’s focus in these businesses continues on
parameterised and programme-based lending, which is
granular and well-collateralised. The Bank has devised
an integrated underwriting approach which is scorecard
driven. Leveraging digital tools and data analytics, the
Bank has built various scorecards namely Unicore and
Infinity, which caters across customers, turn ranges
and loan ticket size. A combination of qualitative and
quantitative assessment tools are utilised to arrive at
the final credit decision. Additionally to cater specifically
to the micro segment, the Bank has a surrogate
programme-based underwriting which considers non-
financial documents such as bank statement and Goods
and Services Tax (GST) returns for credit assessment.
robust
The Bank maintains a
risk management
framework to manage the SME and business banking
portfolio. The Bank has established strong practices
to fuel growth by collateralised-lending and reduce
concentration risks by focussing on granular lending.
Using a combination of qualitative and quantitative
assessment tools, the Bank aims to arrive at a score
to determine the lending criteria. The Bank constantly
monitors and analyses cases to detect stress, thus
enabling the Bank to take early action and ensuring
a healthy portfolio quality. The Bank has further
strengthened its underwriting process by integrating
various digital tools
like bank statement analyser,
automatic fetching of bureau reports and enhanced
business rule engine to generate probability of default
scores for score-based analysis into one single ecosystem
called 'Infinity'.
27
Integrated ReportStatutory ReportsFinancial Statements OUR BUSINESS STRATEGY
Wholesale Banking
The Bank’s wholesale banking customers include large
private sector business houses and companies, financial
institutions and banks, public sector undertakings and
Central and State government entities. The Bank also has
a strong franchise among Multi-National Corporations
(MNCs), real estate companies, IT & ITES and new-age
services companies, along with a strong franchise in the
financial sponsors space with special focus on private
equity funds and their investee companies. Additionally,
the Bank also caters to the requirements of the capital
market and custody participants through unique digital
solutions improving their operational efficiency.
The Bank’s approach has been to deepen its partnership
and provide support to clients through their entire life
cycle. The Bank caters to all needs of the clients across
trade, treasury, bonds and commercial papers through
its comprehensive and technologically-advanced delivery
platforms while also catering to the needs of their supply
chain network.
The Bank aims to become a business partner to its
clients instead of being merely a capital provider. With
the client at the centre, all the teams across the Bank
are well-aligned to offer the entire Bank’s offerings to
wholesale clients and their ecosystems. This has not
only made client servicing more effective, but also helped
Solutions like CorpConnect and DigitalLite enable corporates
to seamlessly manage supply chain financing, payments,
collection and reconciliation requirements of their dealers and
vendors in a convenient and paperless process.
28
in deepening the Bank’s relations in high-value retail
accounts of senior client personnel and employees through
a suite of retail products like salary, private and wealth
banking, home loans, personal loans, vehicle loans, etc.
is an
Supply chain financing
integral part of the
corporate ecosystem and solutions like CorpConnect
and DigitalLite enable corporates to seamlessly manage
supply chain
financing, payments, collection and
reconciliation requirements of their dealers and vendors
in a convenient and paperless process. These solutions
also automatically assess the eligibility of the client’s
dealers and vendors for credit through a business
rule engine, Goods and Services Tax (GST) returns,
intelligent algorithm with automated bureau checks and
dedupe checks.
is extended
leveraged analytics
to
The Bank has extensively
transactions and portfolio quality. While
monitor
new credit
in a granular manner to
well-established and high-rated business groups,
data analytics is used for portfolio monitoring and
identification of early warning signals in the existing
portfolio. This has led to enhancement of the overall
quality of the corporate portfolio.
International Business
international presence
in six overseas
consists of
ICICI Bank’s
business centres
locations and
representative offices in nine locations outside India. The
Bank has Offshore Banking Unit (OBU) in Mumbai and
IFSC Banking Unit (IBU) in GIFT City, and wholly-owned
subsidiaries in the United Kingdom (UK) and Canada.
ICICI Bank UK also has a business centre in Germany.
The Bank’s international franchise focusses on four
strategic pillars, namely the NRI ecosystem comprising
deposits, remittances, investments and asset products;
the MNC ecosystem comprising both foreign MNCs
investing in India and Indian MNCs for their foreign
currency and other India related requirements as well as
Global Capability Centres (GCC), which are back-offices
of MNCs created to serve the world; trade ecosystem,
comprising primarily
India-linked trade transactions
which are self-liquidating in nature; and funds ecosystem,
to capture fund flows into India through the Foreign
Portfolio Investment (FPI) and Foreign Direct Investment
(FDI) route.
Annual Report 2022-23 OUR BUSINESS STRATEGY
to progress
The Bank continued
its strategic
objective of reducing the non-India linked exposures in a
planned manner. The non-India linked corporate portfolio
reduced by 52.3% year-on-year or by USD 0.34 billion
during fiscal 2023.
in
experience.
IBU business
in GIFT City
IFSC Banking Unit (IBU)
The Bank’s
attempts to capture global banking requirements of
ICICI Bank India's client base to enhance Customer
360° banking
centre
complements our domestic business by providing foreign
currency banking solutions across corporate banking,
funds, wealth management, global markets business and
start-up ecosystem. ICICI Bank is a settlement banker
to all three exchanges in GIFT City – NSE IFSC, India
INX & IIBX. The Bank has also obtained clearing, custody
and depository participant licence. On the Start-up
ecosystem front, GIFT City is focussing on onboarding
the overseas holding and subsidiaries of Indian start-ups.
Government Banking
Government is transitioning towards efficient financial
management and transparency in transactions through
digitisation and direct benefit transfer (DBT). ICICI Bank
has been providing a range of banking services to
government departments and their ecosystem through a
network of physical and digital channels.
The Bank offers its government customers integrated and
plug-n-play digital solutions, to assist them in effective
delivery of services to stakeholders including citizens.
The Bank is assisting state-level agencies and last-mile
implementing agencies for adoption of Single Nodal
Agency (SNA) payment model and DBT payments for
management of Government of India scheme funds.
ICICI Bank's digital platforms provide simple online tax
payment options to customers. The Bank is assisting
the government for collection of central taxes, state
taxes, customs duty, GST payments through authorised
business centres and digital platforms. The Bank has also
integrated its payment services with the e-governance
initiative of government like Government e-Marketplace
(GeM), e-tendering and e-treasury.
29
Integrated ReportStatutory ReportsFinancial Statements FAIR TO CUSTOMER, FAIR TO BANK
As our customer engagement deepened, the Bank aimed to
further enhance digital delivery of products and services, offering
comprehensive banking solutions with a sharp focus on efficiency
and risks.
In fiscal 2023, the Bank increased its focus on delivering
value and enhancing customer delight and advocacy
by continuously reimagining processes and customer
experience. The power of subtraction was leveraged
in our service delivery framework, by streamlining
processes and decongesting or digitising customer
journeys. New-age technologies and platforms have
been harnessed to enable ease of serving customers.
The philosophy of ‘Fair to Customer, Fair to Bank’
underpinned the efforts to drive mutually beneficial
customer relationships and build trust in our brand,
while creating value across the customer life cycle.
The Bank continues to deepen its engagement with
customers to understand their needs and expectations.
Based on the insights gathered from proactive product
and process walkthroughs, like the Net Promoter Score
(NPS), Voice of Customer (VOCs), customer complaints
and Root Cause Analysis (RCAs), key customer service
initiatives are implemented on an ongoing basis.
•
•
•
TradeIntelli, an AI-ML-OCR1
led system, has
been implemented to intelligently process trade
finance transactions without human intervention.
It significantly reduces processing time in trade
transactions with higher accuracy and delivers
enhanced customer experience.
Neo Remittance System, the new retail outward
remittance platform, has been created to make
the process of remitting funds outside India faster,
seamless and convenient. The platform harnesses
capabilities such as instant SWIFT generation for
payment, providing real-time updates to customers,
being volume agnostic and
requires minimal
processing time.
iCRM, a single customer
Implementation of
relationship management system at an enterprise
level is underway for lead management, onboarding
and servicing.
Some of the key initiatives towards enhancing and
decongesting the onboarding and servicing experience
of customers taken during fiscal 2023 included:
1. AI: Artificial Intelligence, ML: Machine Learning,
OCR: Optical Character Recognition
A complete digital journey has been enabled for
faster current account onboarding for individuals
and proprietors using Video KYC. A similar digital
journey is being enabled for authorised signatory and
beneficial owner.
Virtual Relationship Manager (VRM) platform has
been implemented to enable Relationship Managers
to receive analytics-driven nudges when engaging
with customers using a universal access number,
thus providing end-to-end servicing support and
enhancing the transaction experience of customers.
Dedicated operations manpower have been
co-located at high footfall business centres for
transaction processing through the Digi Serve
initiative.
•
•
•
30
ICICI Bank increased its focus on delivering value and enhancing
customer delight and advocacy by continuously reimagining
processes and customer experience.
Annual Report 2022-23 FAIR TO CUSTOMER, FAIR TO BANK
REIMAGINING END-TO-END
CUSTOMER LIFE CYCLE
implemented
for smoothening
initiatives rooted
Next-gen Phone Banking Experience
technologies
Various
in new-age
the customer
were
the phone banking channel. This
interactions on
included
free number
toll
(1800 1080) for servicing different products and customer
segments, 24x7 servicing for retail liabilities and credit
cards, voice bot processing calls to reduce the IVR wait
time by ~60%, and voice biometric-based authentication.
introducing a single
Digitisation of Cards Life Cycle
Enhancing credit card customer experience was
another focus area, and an industry-first large-scale
implementation of new-age technologies was undertaken
Intelligence, Conversational AI, NLP2,
like Document
Text Intelligence, Intelligent RPA3, etc. in areas across
onboarding and servicing.
NEW DIGITAL EXPERIENCES
Various services were introduced and improvements
made across digital channels to enhance customer
experience. Features on iMobile Pay App were enhanced
to enable re-KYC through Video KYC process, UPI-related
features and enhancements, hyper-personalisation
through Discover 2.0, PayLater feature, enhancements in
credit card reward points journey, among others. Features
on Retail Internet Banking were also enhanced. These
included re-KYC through Video KYC process, option to
activate 3D secure for NRI customers, etc.
SERVICE ENABLERS FOR
EMPLOYEES
Empowering employees for a seamless engagement with
customers is an ongoing endeavour at the Bank. During
fiscal 2023, V-Serv was launched as an enabler for
employees by providing assistance on processes across
products and services, and supporting quick resolution of
queries. Another initiative was iTrack, introduced in select
business centres, to handle uncommon queries that may
2. NLP: Natural Language Processing
3. RPA: Robotic Process Automation
be received from customers. The objective of this initiative
was to assist business centres to handle such queries
and provide first-contact-resolution, thereby eliminating
repeated visits by customers. GIB Buddy has been
designed to respond to queries related to products and
solutions and process for government and institutional
banking customers.
The emphasis on Customer 360º and the
leading
digital capabilities have strengthened the Bank’s value
for customers and created a positive
proposition
customer experience. Actively listening to our customers
by continuously engaging through various channels like
surveys, social media, business centre touchpoints and
query resolution, are also supplementing the Bank’s
efforts to
journeys and service
response. During fiscal 2023, the Bank saw a sustained
improvement in the Net Promoter Score (NPS) across
products and services, reflecting customer value creation
and advocacy.
improve customer
CUSTOMER ENGAGEMENT
BEYOND BANKING
Recognising customers’ need to understand personal
finance better, the Bank launched a unique digital initiative
'The Orange Book' in fiscal 2022. This is a monthly
e-magazine that educates customers about personal
Orange Book is a monthly e-magazine that educates
customers about personal finance in a simple and easy-to-
understand manner.
31
JUNE 2023 | VOL. 25ORANGEBOOKTHELeverage your FINANCIAL QUOTIENTTwo years of simplifying personal finance!Leverage your FINANCIAL QUOTIENTORANGEBOOKTHENOVEMBER 2022 | VOL. 18Starting Small for their Big FutureIntegrated ReportStatutory ReportsFinancial Statements FAIR TO CUSTOMER, FAIR TO BANK
finance in a simple, easy-to-understand manner using
contextual examples and infographics and helps them to
take better financial decisions. The Orange Book covers
an array of financial topics from investment planning,
safe banking to tax savings, financial preparedness and
much more. To improve the accessibility of the Book, the
Bank has launched the book in English and Hindi. This
initiative has been well-received by customers.
The Bank believes that a deeper and more meaningful
connect with customers is possible particularly if the
engagement is in the areas of their interest such as their
hobbies or passions. With this belief, the Bank launched
a pan-India customer engagement programme called
ICICI Bank iShine where customers and their immediate
families could showcase their talent across eight
categories namely art, body and mind, dancing, food,
performing arts, photography, singing and travel. The
response with
programme saw an overwhelming
1.8 million website visitors and 185,000 programme
registrations. While Customer 360° banking, service
orientation and humility form the basic tenets for serving
our customers, engaging with our customers beyond
banking is helping us build a stronger and deeper connect
with them.
CUSTOMER SERVICE AND
GRIEVANCE REDRESSAL
The Bank has a well-defined framework to monitor key
customer service metrics and complaints. The Customer
Service Committee of the Board and the Standing
Committee on Customer Service meet regularly to
deliberate on various facets of customer service and
the initiatives undertaken by the Bank for enhancing
the same.
The Bank complies with the 'Customer Rights Policy' which
enshrines the basic rights of customers. These rights
include Right to Fair Treatment; Right to Transparency,
Fair and Honest Dealing; Right to Suitability; Right to
Privacy; Right to Grievance Redress and Compensation.
These policies can be accessed on the Bank’s website.
The Bank seeks to treat its customers fairly and provide
transparency in product and service offerings. Continuous
efforts are made to educate customers to enable them to
make informed choices regarding banking products and
services. The Bank also seeks to ensure that the products
offered are based on an assessment of the customer’s
financial needs.
The Bank’s grievance redressal mechanism is well-
defined and comprehensive, with clear turnaround times
for providing resolution to customers. The Bank provides
multiple channels to customers to complain including
the business centres, call centre and digital channels.
All complaints received by the Bank are recorded in
a Customer Relationship Management (CRM) system
and tracked for end-to-end resolution. The Bank has an
escalation matrix built in the CRM system to ensure that
customer requirements are appropriately addressed within
stipulated timelines. The Bank also conducts detailed
Root Cause Analysis (RCAs) of the issues highlighted in
customer feedback, complaints, etc. and insights from
the same are implemented to improve the products and
processes and enhance the services of the Bank.
Further, as recommended by the Reserve Bank of
India, the Bank has appointed senior retired bankers as
Internal Ombudsmen of the Bank. The Customer Service
Committee of the Board, the Standing Committee on
Customer Service and the business centre level Customer
Service Committees monitor customer service at different
levels.
During fiscal 2023, the number of complaints received
from customers declined.
For details refer to page 236 on customer complaints
DATA PROTECTION AND PRIVACY
ICICI Bank is committed to protecting the privacy of
individuals whose personal data it holds, and processing
such personal data in a way that is consistent with
applicable laws. It is important for employees and
businesses to protect customer data and follow the
32
Annual Report 2022-23 FAIR TO CUSTOMER, FAIR TO BANK
applicable privacy laws in India and overseas locations to
ensure safety and security of data. We believe that the
data privacy framework should be in line with the evolving
regulatory changes and digital transformation.
It has an
The Bank has a global presence in several jurisdictions
including Hong Kong, Singapore, United States,
United Kingdom, Canada, China, Dubai International
Financial Centre and Bahrain. The Bank is committed to
ensuring compliance with applicable laws across these
integrated and centralised
jurisdictions.
strategy for achieving data privacy compliance across all
jurisdictions. A set of principles have been defined with
respect to handling customer data. There is a mechanism
in place, which is accessible to all employees in the Bank,
for reporting any form of personal data incident. The
Personal Data Incident Handling Forum (PDIHF) comprises
the Data Protection Officer (DPO) and senior members
from the Information Security Group, Operational Risk
Management Group, Fraud Management Group, Human
Resources, Compliance and the Legal Team. Any kind
of personal data related incidents reported through the
service request undergoes detailed investigation and a
report is presented to PDIHF on a monthly basis.
As per the Personal Data Protection Standard of
the Bank, it ensures that all personal data it processes is
kept secure using appropriate technical and organisational
measures
including necessary policies, processes
and controls which includes physical access control,
encryption or pseudonymisation, stress testing, risk
assessment, data protection impact assessment and
providing training to the Bank's employees. The Bank
the Personal Data Protection
periodically updates
Standard
the personal data protection
to cover
regulatory requirements as applicable to the Bank in India
and its overseas offices to reflect the changes in data
protection laws and regulations. An external review of
the privacy maturity assessment was conducted in fiscal
2023, which placed the Bank’s data privacy practices to
be above industry benchmarks.
require
regulations
Privacy
the personal data of
customers to be protected throughout its entire life
cycle. Accordingly, the Bank has undertaken several
comprehensive measures such as categorising all
personal data and sensitive personal data as ‘Confidential
Information’, keeping
its processing
activities, entering into non-disclosure and confidentiality
agreements with employees and third parties who are
privy to personal data of the customers and providing
customers the option to exercise various rights which they
enjoy under applicable data protection regulations and
incident handling procedures.
record of all
There are e-learning modules specifically on the concept
of personal data and its protection to build awareness
among employees. Periodic trainings are provided and
various data privacy awareness initiatives are taken up by
the Data Privacy team for employees to help them get an
overview of data privacy and its importance in day-to-day
work. Periodic mailers are also sent to the employees to
create awareness about data privacy.
The Bank has established a strong governance
framework for data privacy management. The Bank’s
Data Protection Officer (DPO) oversees all privacy related
developments for the Bank as a data processor for
international banking business and as a data controller for
NRI and remittance businesses. The Bank has designated
data protection managers/representatives from each
business function and at every overseas location to
ensure the proper implementation of the privacy standard.
A Privacy Steering Committee meets every six months,
and oversees various privacy related initiatives. Further,
the Bank’s Code of Business Conduct and Ethics covers
guidelines on customer privacy and confidentiality of data.
33
Integrated ReportStatutory ReportsFinancial Statements OUR VALUES
The Bank lays strong emphasis on risk and compliance, and creating
awareness among employees on the core values and desired
behaviour. Employees are expected to act in accordance with the
highest professional and ethical standards.
ICICI Bank is committed to strengthening its culture
and encouraging adoption of values and code of
conduct among employees and appropriate ways
of doing business, where every action
in the
interest of customers and the Bank. There is also a
continuous endeavour to embed relevant principles and
communicate the organisations culture on an ongoing
basis. The Bank adopted the Risk and Compliance
Culture Policy in fiscal 2022, as we recognise the
importance of establishing effective frameworks and
supporting processes that encourage employees to
exhibit the desired ethos of the Bank.
is
The Risk and Compliance Culture Policy articulates
the guiding principles and aspects
for effective
implementation of these principles.
The effective implementation of the policy includes a
governance framework with roles and responsibilities
of the Board, MD & CEO and Executive Directors and
the Risk and Compliance Culture Council. Consistent
and continuous communication of these principles in
interactions with employees is considered an effective
mechanism to establish these values that are core to
the Bank. In addition, business compliance officers
have been appointed within
functional teams to
strengthen compliance practices. All employees are
encouraged to align with the guiding principles while
conducting their activities.
The Bank is committed to act professionally and fairly
in all its dealings. The ICICI Group Code of Business
Conduct and Ethics provides the values, principles and
standards that should drive decisions and actions of
employees of the Bank. The Code is also the Bank’s
commitment to its stakeholders for adhering to the highest
ethical standards and dealing with integrity. All new
employees are required to complete mandatory training/
e-learning modules pertaining to Code of Conduct,
Information Security, Anti-Money Laundering and other
compliance-related areas that are critical and sensitive.
THE GUIDING PRINCIPLES
Fair to
Customer,
Fair to Bank
One Bank,
One Team
Return of
Capital is
Paramount
Agile Risk
Management
Compliance
with
Conscience
34
Annual Report 2022-23 OUR VALUES
Key Standards of the Group Code of Business Conduct and Ethics 2023
•
•
•
Conflict of interest
Privacy/confidentiality
Anti-bribery and anti-corruption/gifts
and entertainment
•
Personal investment
• Accuracy of company records and reporting
•
Know-your-customer/anti-money laundering
• Workplace responsibilities & social media
As a global bank, the Bank is subjected to Prevention of
Corruption Act, 1988 (POCA) in India, Foreign Corrupt
Practices Act (FCPA) in the United States of America and
similar applicable anti-bribery regulations as amended
from time to time in other jurisdictions where the Bank
does business and as may be applicable. The Bank has
a zero tolerance approach to bribery and corruption. The
Bank has a well-defined Anti-Bribery and Anti-Corruption
policy articulating the obligations of employees in these
matters. The Bank’s third-party vendors are also required
to adhere to the Bank’s Anti-Bribery and Anti-Corruption
policy, including providing an annual self-declaration
confirming their compliance. Apart from an annual review
of the policy, the Bank also undertakes periodic external
risk assessment of the policy at least once in three years.
The last risk assessment was conducted in fiscal 2021,
and no material gaps were identified. The Bank’s Vigilance
Committee reviews matters pertaining to bribery and
corruption.
The Bank has a Board-approved Group Anti-Money
Laundering (AML) and Combating Financing of Terrorism
(CFT) Policy. The policy specifies a risk-based approach
in implementing the AML framework. AML standards
of the Bank are primarily based on two pillars, namely,
Know-Your-Customer (KYC) and monitoring/reporting of
suspicious transactions (MSTR). The policy also specifies
monitoring of transactions on pre-defined rules as per
the regulatory guidelines and any suspicious transactions
found are required to be submitted to the concerned
reporting authorities. The Bank through name screening
procedure ensures that the identity of the customer
does not match with any person with known criminal
background or with banned entities. For the purpose of
avoiding proliferation financing/terrorism financing, the
Bank shall maintain lists of individuals or entities issued
by Reserve Bank of India, United Nations Security Council,
other regulatory and enforcement agencies, legislation,
internal lists as the Bank may decide from time to time.
transactions,
Further, while handling cross-border
the Bank carries out screening of names involved in a
transaction against sanctions lists and other negative
lists, as applicable.
The Bank continuously focusses on effectiveness of
financial controls and assesses compliance with all
relevant regulatory requirements. All the key policies of
the Bank are regularly reviewed and enhanced to ensure
relevance, adherence to regulations and adoption of best
practices on an ongoing basis. The Board-approved Group
Compliance Policy lays down the compliance framework
with emphasis on ensuring that products, customer
offerings and activities conform to rules and regulations
and adheres to the Bank's ethos of 'Fair to Customer,
Fair to Bank'.
The Bank undertakes periodic training sessions and
sends
information mailers, as part of knowledge-
enhancement and awareness, to employees. The frequency
of messages are high with regard to areas like fraud risk
management, data privacy, cybersecurity, compliance
policies, conflict of interest, sexual harassment, etc. The
Bank is committed to constantly reviewing its governance
practices and frameworks, with a focus on staying
updated and responsive to the dynamic and evolving
landscape, and acting
interest of all
stakeholders.
in the best
35
Integrated ReportStatutory ReportsFinancial Statements RISK GOVERNANCE FRAMEWORK
With a focus on responsible and sustainable growth, the Bank
continuously endeavours to maintain effective governance, a strong
risk culture and robust enterprise risk management framework.
risk,
As a financial intermediary, the Bank is exposed to
various risks, primarily credit risk, market risk, liquidity
risk, operational
risk,
compliance risk, legal risk and reputation risk. The Bank
is committed to managing material risks and participating
in opportunities as part of the strategic approach
of
in core operating profit
less provisions.
risk-calibrated growth
risk, cyber
technology
The Board of Directors of the Bank has oversight of
all risks in the Bank with specific Committees of the
Board constituted to facilitate focussed oversight. Most
Independent Directors
Committees are chaired by
and there is adequate representation of Independent
Directors on each of these Committees. The Board
has
these
Committees. The proceedings and the decision 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.
framed specific mandate
for each of
The roles of specific committees of the Board constituted
to facilitate focussed oversight of various risks are:
Credit Committee
Review of developments in key industrial sectors, major
credit portfolios and approval of credit proposals as per
the authorisation approved by the Board.
Audit Committee
Provides direction to the audit function and monitors the
quality of internal and statutory audit; responsibilities
include examining the financial statements and auditors’
report and overseeing the financial reporting process to
ensure fairness, sufficiency and credibility of financial
statements.
36
Information Technology Strategy Committee
Approve strategy for IT and policy documents, ensure
that the IT strategy 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, oversee the
activities of Digital Council, review technology from a
future readiness perspective, overseeing key projects
progress and critical IT systems performance and the
review of special IT initiatives.
Risk Committee
Review risk management policies pertaining to credit,
market, liquidity, operational, outsourcing, reputation
risks, business continuity plan and disaster recovery
plan and approve Broker Empanelment Policy and any
amendments thereto. The functions of the Committee also
include setting limits for industry or country exposures,
review
the Bank's Enterprise Risk Management
Framework, Risk Appetite Framework, Stress Testing
Framework,
Internal Capital Adequacy Assessment
Process and Framework for Capital Allocation; review the
status of Basel implementation, risk dashboard covering
various risks, outsourcing activities and the activities of the
Asset Liability Management Committee. The Committee
has oversight on risks of subsidiaries covered under the
Group Risk Management Framework. The Committee
also reviews the cybersecurity risk assessment.
The Bank also has a Financial Crime Prevention Group
(FCPG) to oversee/handle fraud prevention, detection,
creating
investigation, monitoring,
awareness about fraud risk management.
reporting and
The Bank has put
in place an Enterprise Risk
Management (ERM) and Risk Appetite Framework (RAF)
that articulates the risk appetite and drills down the
Annual Report 2022-23 RISK GOVERNANCE FRAMEWORK
same into a limit framework for various risk categories
under which various business lines operate. In addition to
the ERM and RAF, portfolio reviews are carried out and
presented to the Credit and Risk Committees as per the
approved calendar of reviews. As part of the reviews, the
prevalent trends across various economic indicators and
their impact on the Bank’s portfolio are presented to the
Risk Committee. Industry analysis are also carried out
and outcomes are presented to the Credit Committee for
review and guidance.
The
Internal Capital Adequacy Assessment Process
(ICAAP) encompasses capital planning for a four-
year time horizon, assessment 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
for the management of material risks. Stress testing,
which is a key aspect of the ICAAP and the risk
management framework, provides an insight on the
impact of extreme but plausible scenarios on the Bank’s
risk profile and capital position.
Several groups and sub-groups have been constituted
to facilitate
independent evaluation, monitoring and
reporting of risks. These groups function independently of
the business groups.
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 Group is
headed by the Chief Risk Officer who reports to the Risk
Committee of the Board of Directors.
The Compliance Group, headed by the Group Chief
Compliance Officer, oversees regulatory compliance of
the Bank, both at the policy and procedures level and
at the level of implementation by the respective groups.
information
The Group has unrestricted access to
within
the
regulatory guidelines.
to assess compliance with
the Bank
The Reputation Management Forum, comprising executive
director and leadership members, oversees reputation
risk assessment at the Bank. The Forum has adopted a
framework for conducting periodic reviews and ensuring
adequate processes and systems to identify, assess and
manage reputation related risks. This includes evaluating
key risk indicators and events like complaints, frauds,
media news flow, legal matters, and others that could
potentially pose a reputation risk. There are also response
mechanisms in place for managing reputation related
issues. The risk and control assessment is presented to the
Board Risk Committee on a quarterly basis.
The Internal Audit Group, being the third line of defence,
provides
independent assurance that the aforesaid
independent groups monitoring the risks in the Bank, are
operating in line with policies, regulations and internal
standards defined for management of the various risks
in the Bank.
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 responsible for Corporate Centre.
INDEPENDENT GROUPS FOR MONITORING RISKS
Risk
Management
Group
Compliance
Group
Internal
Audit Group
Financial Crime
Prevention and
Reputation Risk
Management
Group
37
Integrated ReportStatutory ReportsFinancial Statements RISK GOVERNANCE FRAMEWORK
ensuring
increasing
With
effective
digitisation,
management and governance of data has become a
critical business enabler. To further strengthen data
quality, data standardisation and governance around
data, a Chief Data Officer (CDO) was appointed in
fiscal 2023. The role of the CDO includes creating the
governance and processes around data generation and
processing and compliance with regulations across all
aspects of its operations. The CDO is also responsible
for implementation of the Bank's Data Governance Policy.
CYBERSECURITY GOVERNANCE
Cyber risks form an integral part of the Bank’s enterprise
risk management framework. The Bank is committed
to work towards aligning
itself with the changing
threat landscape and has a dedicated team for cyber/
information risk management. There is robust oversight
by the Board, and takes regular updates from the
Information Security Group (ISG) of the Bank. A monthly
risk-based detailed CISO dashboard capturing the
various Key Performance Indicators (KPIs) and Key Risk
Indicators (KRIs) associated with SOC operations and
offences summary for the month is prepared which is
reviewed by the CISO and the CRO.
framework
consisting of
information and cybersecurity
The Bank has an
leadership,
governance
that help
organisational structures and processes
us
in mitigation of growing cybersecurity threats.
Our cybersecurity governance encompasses management
oversight at various levels with the ultimate responsibility
assumed by the Board of Directors.
Information
The Executive Committees have diverse
cross-
functional members and well-defined terms of reference.
Proceedings of these Committees are reported to the IT
Strategy Committee. Additionally, the Bank has multiple
KRIs/dashboard to review system stability, continuity and
availability and network uptime. The Bank also has a
Security Policy, Cyber
well-defined
Security Policy and
Information Security Standards
and Procedures. These policies have been designed by
drawing from several standards and regulations including
the RBI Cyber Security Framework, NCIIPC Guidelines
for Protection, FFIEC Cybersecurity Assessment Tool, the
SEBI Cyber Security and Resilience Framework for Stock
Brokers/Depository participants,
IRDA Guidelines on
Information and Cyber Security for insurers, Unusual
Cyber Security Incidents framework. The Bank has also
incorporated industry best practices such as the National
GOVERNANCE STRUCTURE FOR INFORMATION TECHNOLOGY
Board of Directors
Risk Committee
IT Strategy
mittee
m
o
C
A
u
d
it
C
o
m
m
i
t
t
e
e
Board
Sub-Committees
Executive Committees
Information Technology
(IT) Steering Committee
Information &
Cybersecurity
Committee
Business Continuity
Management (BCM)
Steering Committee
38
Annual Report 2022-23
RISK GOVERNANCE FRAMEWORK
CONTROLS FOR IT INFRASTRUCTURE
Preventive Control
Detective Control
Responsive Control
y Security Operation Centre
(SOC) Monitoring
y Web Application Firewall
y Network Operation
y Incident Response Plan
y Cyber Crisis Management
Plan (CCMP)
y Forensic Agreements
Centre (NOC) Monitoring
with partners
y RED teaming exercises
y Application Security
Life Cycle (ASLC),
Vulnerability Assessment
and Penetration Testing
(VAPT), Antivirus, Vendor
Risk
y Assessment, Firewall,
Intrusion Detection
System (IDS)
y Access Management
y Distributed Denial of
Service (DDoS) mitigation
Institute of Standards and Technology (NIST) and the
regulatory requirements of some other jurisdictions in
which the Bank operates. Further, periodic internal and
external audits are undertaken and inputs from these
assessments are incorporated. The Bank’s Data Centre is
ISO 270011 certified.
identified
The Bank has a Disaster Recovery plan to ensure
to customers and
continuity of critical services
availability of
systems during
significant disruptions. In the event of a disaster, the
Bank endeavours to resume business and operations
to an acceptable
level as per the Recovery Time
Objectives (RTOs) for the application. The efficacy of the
DR plan is established through periodic DR drills.
critical
PARTICIPATION IN EXTERNAL
CYBERATTACK SIMULATIONS
in several
The Bank conducts and participates
cybersecurity attack simulation drills such as spear
phishing drills on employees, Distributed Denial of Service
(DDoS) attack drills for Internet Service Providers (ISPs),
social engineering-based attacks on data centre staff
to gain physical access etc. Business continuity and
recovery drills are conducted to assess the Bank’s ability
and readiness to combat disasters, to ensure continuity
of critical business processes at an acceptable level and
limit the impact of the disaster on people, processes
and infrastructure. The Bank periodically conducts cyber
maturity assessments through a third-party, which is
a comprehensive risk assessment of the cybersecurity
posture of the Bank. The last such assessment and
benchmarking with global banks was undertaken in
fiscal 2022, and the Bank’s cyber posture was at par with
global banks.
1 ISO 27001 is an international standard for information security management.
39
Integrated ReportStatutory ReportsFinancial Statements RISK GOVERNANCE FRAMEWORK
The Bank believes in providing services to its customers
in the safest and in a secure manner keeping in mind that
protection of data of its customers is as important as
providing quality banking services across the spectrum.
The Bank also undertakes campaigns to create awareness
among customers on security aspects while banking
through digital channels.
There were no material incidents of security breaches or
data loss during fiscal 2023.
ENVIRONMENTAL, SOCIAL AND
GOVERNANCE (ESG)
The Risk Committee and the Board reviewed material
ESG matters during fiscal 2023, and were provided
updates on progress made on various ESG-related
initiatives at the Bank. The Board-approved ESG Policy
was reviewed and updated largely to reflect the progress
on ESG made by the Bank during fiscal 2023 and the
requirements under
the SEBI-mandated Business
Responsibility and Sustainability Report (BRSR).
ESG RATINGS
The improvement in the Bank’s ESG ratings by external
agencies is evidence of the progress being made across
various areas. The ESG rating by MSCI improved from
BBB to A and the ESG score by Sustainalytics improved
from High Risk to Medium Risk category. During
fiscal 2023, the Bank responded to the climate change
questionnaire by CDP Worldwide for the first time. The
Bank received a rating of C, which was same as the Asian
regional average.
ESG GOVERNANCE
Governance Structure
Board of Directors
Risk Committee
ESG Steering Committee
Dedicated Team within CFO’s Office
tracks ESG and CSR initiatives
Overarching Environmental, Social and
Governance Policy
• Broad focus areas
• Responsible financing
• Environmental sensitivity in the Bank’s operations
• Customers
• Employees society
• Corporate governance
• Cybersecurity and data privacy governance
framework
• Stakeholder engagement and accountability
• Policy available on the Bank’s website
40
Annual Report 2022-23 RISK GOVERNANCE FRAMEWORK
ESG-Related Developments During Fiscal 2023
The Bank’s efforts in ESG were further strengthened during the year with setting up of a dedicated team
to lead the Bank's ESG-related actions and initiatives. The management-level ESG Steering Committee
provides regular oversight and guidance to the ESG team. Key actions and focus areas were:
•
•
•
•
•
•
•
Continuous engagement with internal stakeholders to build awareness and create capabilities.
Facilitate training sessions for Board members and senior personnel.
Track key developments in India and global markets with objective to develop internal targets for
reduction in carbon footprint in the Bank’s own operations.
A framework for Sustainable Financing was developed aimed at providing guidance on Green/Social
(Sustainable)/Sustainability-linked lending.
Strengthen engagement with vendors on ESG and sustainability, develop a Suppliers’ Code of
Conduct, guidelines for green procurement and alignment of vendors' action plan with that of
the Bank.
Adoption of green power, wherever available and feasible, is enabling the Bank manage its Scope 2
emissions. This is part of the internal two-year roadmap for bringing down the overall Scope 1 and
Scope 2 emission intensity.
Initiate evaluation of Bank’s Scope 3 emissions in own operations and take up various pilot projects to
assess key data and information requirements for calculating carbon and GHG emissions in accordance
with established protocols.
•
Improve water and waste management, and initiate monitoring and measurement of these aspects.
The Bank is committed to minimising the environmental impact of its operations and business. The Bank
is working towards setting a time-bound target for reduction in emissions/reduction in emissions intensity/
carbon neutrality.
More details are available in the Bank’s ESG Report, and Business Responsibility and Sustainability Report (BRSR) for fiscal 2023 on
the Bank's website.
41
Integrated ReportStatutory ReportsFinancial Statements RESPONDING TO RISKS AND
OPPORTUNITIES
The Bank recognises the importance of adopting a rigorous approach
to understanding and responding to risks and opportunities that
enables long-term value creation for all stakeholders.
The Bank has a robust process to identify and monitor
risks and respond appropriately. The Bank continuously
reviews and enhances the methods for identification and
assessment of risks, and sets appropriate metrics and
controls, and mitigants for managing significant risks.
This is further strengthened by investing in capability
building and using Artificial Intelligence (AI)/Machine
Learning (ML) techniques to enhance credit underwriting
and early warning capabilities.
In fiscal 2023, the Bank continued to monitor the risks
it is exposed to, including economic, credit, market,
liquidity, cyber, information technology and employee
related risks. Apart from these traditional risks, the Bank
is also cognisant of emerging new-age risks like climate
change. The Bank has initiated steps to embed climate
risk assessment and climate risk management as part
of the Bank’s risk management framework. A dedicated
team within the Risk Management Group has been
set up to develop a framework to assess the physical
and transition risks of companies in the Bank’s portfolio,
and manage these risks as part of the credit evaluation
process. The Bank has also been participating
in
policy-making by providing inputs and supporting the
regulator in assessing impact of climate change risks on
specific sectors.
RISKS IMPACTING THE BANK’S BUSINESS
Risk Type
Key Risks
Our Response
Economic Risk
Volatile economic environment
driven by rising inflation, global
monetary policy stance and
geopolitical tensions.
Continuously monitored developments in the
global and Indian economy, including country
risk and sector-specific risks and responded
accordingly.
Credit Risk
Volatile market conditions and
rising interest rates posed
challenges for customers.
Ensured effective risk management across
business segments, strengthened by ongoing
reviews for early identification and stress
testing; the Bank maintained strong capital
and liquidity positions, which were significantly
above regulatory requirements.
Market and
Liquidity Risk
Challenges posed by tightening
monetary policy, withdrawal of
liquidity by the central bank and
exchange rate movements.
Robust policies, and periodic reviews at the
level of Board and sub committees; strategic
priority towards asset liability management and
strengthening the Bank's liability franchise.
42
Annual Report 2022-23 RESPONDING TO RISKS AND OPPORTUNITIES
Risk Type
Key Risks
Our Response
Cyber Risk
Technology Risk
Growing threat of cyberattacks
combined with increasing
digitisation of banking products and
services could expose the Bank
to security risks. The Bank also
leverages partnerships with third
parties and these could also be a
source for information security risks.
Investing on building resilience and effectively
respond to cyberattacks; the Bank has laid
significant focus on data privacy and data loss
prevention mechanisms. There were no material
incidents of security breaches or data loss
during fiscal 2023.
The growing customer dependence
on digital transactions and the
rising volumes of such transactions
requires banks to focus on the
availability and scalability of our
systems. Misalignment between
business and IT strategies is a
formidable risk.
The Bank is proactively investing in technology
and improving its response to changing
technological dynamics. The governance
framework and Board-level oversight ensures
that information technology strategy is aligned
with the business strategy with appropriate
policies and control frameworks. The Bank’s IT
systems were stable and largely uninterrupted
during fiscal 2023.
Employee Risk
Compliance Risk
Retention of employees and ability
to attract and motivate talented
professionals is critical for the
successful implementation of the
Bank’s strategy and competing
effectively.
As a systemically important bank in
India, compliance with regulations
and preparedness to evolving
developments is a key priority for
the Bank.
Provide opportunity for job rotation and
enhance career growth and development;
employee well-being and upskilling are
key priorities.
The Bank has established well-articulated
policies and controls to ensure compliance with
laws and regulations. Continuous evaluation
and updating the policies to remain relevant and
adopt best practices is an ongoing effort.
A strong compliance culture driven by the
Bank’s leadership is enabling timely action.
43
Integrated ReportStatutory ReportsFinancial Statements MATERIALITY ASSESSMENT
In fiscal 2022, the Bank conducted its first materiality assessment
exercise to identify key material topics for our stakeholders and
business.
Five-step approach for assessing material issues involved:
Stakeholder identification
Process for capturing internal and external perspectives by identifying key internal
and external stakeholders by mapping their interests and role for the organisation
Identifying the universe of relevant ESG topics
List of 23 topics identified based on discussions with internal stakeholders, peer
review and benchmarking, sector research, media reports and secondary sources
Stakeholder consultation
Developed a survey for capturing responses from diverse stakeholders
Data collection and analytics
Analysed the data and level of priority of every material topic for every stakeholder
Calibration of results
Developed a materiality matrix to prioritise the topics into high, medium and low
categories based on the order of preference listed by stakeholders
44
Annual Report 2022-23 MATERIALITY ASSESSMENT
KEY MATERIAL ISSUES
1
Compliance with regulations and other laws
8
Financial performance
2
Digital innovation/transformation
9
Stability of risk management and risk outcomes
3
Data privacy and cybersecurity
4
Corporate governance and business ethics
5
Transparency and disclosures
10
Leadership development and succession
planning
11
Promoting environment-positive projects
(e.g. lending to 'green' sectors)
6
Improving customer experience and
satisfaction
12
Carbon emissions & resource efficiency in the
Bank's own operations
7
Customer fairness and right-selling
13
Exposure of the Bank to climate-related risks in
its loan portfolio
MATERIALITY MATRIX
10
8
9
6
5
3
7
2
1
4
l
s
r
e
d
o
h
e
k
a
t
S
l
a
n
r
e
t
x
E
o
t
e
c
n
a
t
r
o
p
m
I
11
13
12
Importance to Internal Stakeholders
Environmental
Social
Governance
45
Integrated ReportStatutory ReportsFinancial Statements
MATERIALITY ASSESSMENT
The Bank recognises the importance of maintaining a strong focus on issues material to its stakeholders. The nature
and potential impact of these material issues may vary and change over time. The top 13 areas and the risks and
opportunities are as given below:
Compliance with Regulations and Other Laws
Risks
How We Are Responding
Being a domestic systemically important bank in India, we
are exposed to various compliance requirements. The Bank
has to ensure robust policies and processes, and there are no
deficiencies in meeting evolving requirements on an ongoing
basis. Any deficiency could lead to reputation risks and a breach
of trust.
We strive to be a responsible organisation
with continued efforts at embedding a strong
risk and compliance culture. The Bank remains
vigilant of the evolving regulatory landscape,
while ensuring that operations follow
standards established by regulatory bodies.
Opportunities
There is an opportunity to engage constructively with policy
makers and advocate adoption of best practices for building
resilience in the financial sector and supporting a growing
economy.
For more details refer to page 34
The Bank’s control functions ensure that
businesses and operations are aligned with
best practices.
Digital Innovation / Transformation
Risks
The increasing volume of digital transactions requires us to
ensure availability and scalability of systems. A misalignment
between business and IT strategies is a risk. An elongated
period of downtime in the Bank’s digital channels could lead to
operational and reputation risks for the Bank.
Opportunities
Digital innovations provide an opportunity to differentiate our
offerings, with seamless and secure customer experiences.
This can provide competitive advantage and gain customer
confidence.
For more details refer to page 19
How We Are Responding
We aspire to create digital innovations with
rich features and functionalities for customers.
The Bank’s digital platforms have transformed
to provide seamless digital journeys. The open
architecture platforms have enabled us to
extend banking services to non-ICICI Bank
account holders.
46
Annual Report 2022-23 MATERIALITY ASSESSMENT
Data Privacy and Cybersecurity
Risks
Lack of robust data governance practices could increase the
risks of non-compliance, regulatory fines, financial losses and
reputation risk. The cybersecurity landscape is also highly
dynamic and exposes the Bank to significant challenges to ensure
safety and security of customers’ money and personal identity.
Opportunities
Strong governance and a robust cybersecurity and data privacy
strategy can create confidence in the institution and also
differentiate us as a responsible organisation with customer
interest paramount.
For more details refer to page 32 and 38
How We Are Responding
Dealing with cyber risks form an integral part
of the Bank’s enterprise risk management
framework. The Bank is committed to working
towards aligning itself with the changing
landscape and has a dedicated team for cyber/
information risk management.
Corporate Governance and Business Ethics
Risks
Ensuring strong governance practices and communicating the
same across all levels in the Bank is important to build a culture
that ensures business outcomes are delivered in the right manner
and with responsibility. Banking is a business of trust, and failures
caused by ethics, values and behaviours can cause reputation risk
and could create significant costs to the Bank.
How We Are Responding
We have established effective policies and
frameworks that encourage employees to act
in accordance with the highest professional
and ethical standards. Regular communication
and training of employees is also undertaken.
Opportunities
Embedding the right culture takes time to establish and begins
with strong corporate governance and business ethics, which
will ensure long-term sustainability of the organisation.
For more details refer to page 34
47
Integrated ReportStatutory ReportsFinancial Statements MATERIALITY ASSESSMENT
Transparency and Disclosures
Risks
Transparency is integral to good governance. Ensuring
transparency in our engagement with customers and providing
information of our products and services can enable customers
to take sound financial decisions. The Bank recognises the
responsibility and importance to be honest in its dealings with
stakeholders.
How We Are Responding
We recognise the criticality of transparency
and disclosures, whether about the products
we offer, our engagement with stakeholders
or our contribution to society. The Bank aims
to maintain robust governance and ethical
and transparent relationship with
all stakeholders.
Opportunities
The Bank seeks to engage constructively and responsibly in
its area of operations. This is critical to build trust in the Brand,
and with direct consequences to our business. The Bank also
aims to ensure fair and balanced disclosures of its financial
performance, with additional relevant disclosures made as and
when required.
Improving Customer Experience and Satisfaction
Risks
Customer demands are evolving and digitisation has created
new dimensions in banking services. Continuous value creation
and superior banking experiences have become important
considerations for customers. Lack of innovation and a customer-
first approach could result in obsolete service delivery, meeting
limited needs of customers and a loss of trust.
How We Are Responding
Our Customer 360º approach and digital
capabilities have strengthened the Bank’s
value propositions for customers. Actively
listening to our customers has helped improve
the Bank’s offerings to customers, and reflects
in the advocacy scores for the Bank.
Opportunities
Digitisation and the rapid adoption of smartphones has
given banks an opportunity to explore new ways of banking
and providing customers with unique offerings and with
convenience.
For more details refer to page 30
48
Annual Report 2022-23 MATERIALITY ASSESSMENT
Customer Fairness and Right-selling
Risks
Failure to serve with customer-appropriate product offering, or
value-add for customers or inappropriate conduct can lead to
loss of trust and risk the reputation of the Bank.
Opportunities
Banking is a business based on trust, and requires high level
of customer-appropriate conduct. Generating business while
protecting the interests of customers contributes to attracting
depositors and growth in business.
For more details refer to page 34
Financial Performance
Risks
The Bank’s ability to adapt to any challenges posed by the
external environment and swiftly prepare for compliance
with evolving regulations is key to deliver consistent financial
performance.
Opportunities
The Bank’s approach is to identify micromarkets which hold high
potential & increase market share by serving customers with
360º solutions as well as engage with all key stakeholders. This
provides opportunities to penetrate the deep market in India.
For more details refer to page 117
How We Are Responding
The Bank’s philosophy of ‘Fair to Customer,
Fair to Bank’ emphasises the need to deliver
fair value to customers, including selling
products and offer services which meet
societal needs and are in the interest of
customers.
How We Are Responding
Our strategic focus is to grow the core
operating profit less provisions within the
guardrails of risk and compliance. We are
investing in areas that are critical for improving
productivity and operational efficiency.
Stability of Risk Management and Risk Outcomes
Risks
The Bank is exposed to several risks and the ability to manage
various types of traditional and emerging risks is critical for
sustainable growth of the Bank.
Opportunities
Dynamic risk management and understanding the opportunities
and challenges associated with participating in strategic
opportunities is the bedrock for robust growth of business.
How We Are Responding
The Bank continuously reviews the operating
environment and closely monitors significant
risks that could impact business. The Bank’s
Enterprise Risk Management and Risk
Appetite Framework articulates the risk
appetite, and drills down the same into a limit
framework for various risk categories under
which various business lines operate.
For more details refer to page 42
49
Integrated ReportStatutory ReportsFinancial Statements MATERIALITY ASSESSMENT
Leadership Development and Succession Planning
Risks
Strong management development and succession planning
are important for the successful implementation of our
strategy and stability of the organisation.
Opportunities
Leadership development and commitment to attracting,
developing and retaining a diverse and inclusive workforce can
enable the Bank to deliver strong and consistent results.
How We Are Responding
The Bank has adopted the principle of ‘One
Bank, One Team’, and has accordingly
structured its human resource management
practices, including key performance
indicators, providing operating flexibility and
accountability to business centres and a
shift from grades to functional designations
at senior levels. These are aimed at greater
agility and synergy across the organisation
and are supporting improved business
performance and financial results.
For more details refer to page 52
Promoting Environment-Positive Projects
Risks
The climate challenge and a fast transition to a low-carbon
economy could give rise to new types of risks that may not be fully
understood.
Opportunities
Using our financial expertise to provide capital to low-carbon
sectors and new business opportunities in this space, based on
appropriate risks and return assessment. We are committed to
supporting customers as they decarbonise their business.
How We Are Responding
The Bank has been supporting capacity
creation in environment-friendly areas, such
as renewable energy, use of electric vehicles
and development of green buildings, with an
appropriate risk-return assessment. There is
also a focus on promoting biodiversity and
protecting our ecology through the Bank’s CSR
initiatives.
For more details refer to page 66
50
Annual Report 2022-23 MATERIALITY ASSESSMENT
Carbon Emissions & Resource Efficiency in the Bank's own Operations
Risks
Assessing the environmental impact of the Bank’s own
operations and facilities will be necessary to develop the
Bank’s own roadmap towards carbon neutrality/net zero in
own operations.
Opportunities
Being in the service industry, the carbon footprint from own
operations is not expected to be significant and would be
manageable.
For more details refer to page 68
How We Are Responding
The Bank is committed to minimising the
environmental impact of its operations and
facilities. It is working towards meeting this
objective by adopting best practices and
certifications for green standards in the
Bank’s operations.
Exposure of the Bank to Climate-related Risks in its Loan Portfolio
Risks
The Bank’s Board has emphasised the need to evaluate the
impact of risks posed by climate change.
Opportunities
Significant opportunities are likely to emerge as efforts to
meet national commitments towards sustainable growth and
transition to become net zero by the year 2070 gains traction.
The Bank has been supporting environmentally favourable
projects based on an appropriate risk-return assessment.
For more details refer to page 67
How We Are Responding
The Bank has established adequate policies
and frameworks for evaluating climate-related
risks in the lending book. At the same time,
assessment of the portfolio to climate risks has
been included as part of stress testing as well
as capital planning exercise.
51
Integrated ReportStatutory ReportsFinancial Statements HUMAN CAPITAL
The Bank's human resources and cultural anchors are critical to
driving the success of its business.
The Bank’s human capital strategy is underpinned by
key cultural anchors of Fair Compensation, Learning and
Growth, and Care.
the
is to create a responsive
The Bank’s endeavour
workforce, encouraged by empowering
teams
to take cues from the local environment and identify
opportunities for risk-calibrated growth. The Bank has
taken steps to organise and structure teams in a way
which facilitates the Bank’s approach to Customer 360°.
The Bank has invested in aligning the organisation around
micromarkets and customer ecosystems by increasing
the density of leadership in key markets. The integration
of the Bank’s businesses happens closer to the customer.
This enables better understanding of customer needs at
a micromarket level in addition to enhancing the Bank’s
agility
in responding to business requirements and
opportunities. The corporate office operates as a service
centre and the purpose of the central team is to serve
the employees to facilitate customer engagement and
seamless delivery of products and services. The Bank
encourages its employees to experiment and innovate to
deliver services and create solutions for customers within
the guardrails of risk and compliance.
FAIR COMPENSATION
The Bank follows a prudent compensation practice under
the guidance of the Board of Directors and the Board
Governance Remuneration & Nomination Committee (the
BGRNC or the Committee). The Compensation philosophy
of the Bank is aligned to reward team performance.
The Bank’s approach to compensation is intended to
drive meritocracy within the framework of prudent risk
management. The total compensation is a prudent mix
of fixed pay and variable pay, which takes into account
a mix of external market pay and internal equity. The
fixed pay offered by the Bank, largely reflects pay for
the role. The variable compensation is in the form of
share-linked instruments or cash or a mix of cash and
share-linked instruments. The cash component of variable
pay (performance bonus) is aligned to the philosophy of 'One
Bank One Team' as it is based on overall performance of the
Bank and reflects reward for team performance. The grant
of share-linked instruments to eligible employees, reflects
individual potential and criticality of position/employee. The
compensation of staff engaged in all assurance functions
like Risk, Compliance & Internal Audit depends on the
achievement of key results of the respective functions and
is independent of the business areas they oversee.
LEARNING AND GROWTH
The Bank’s focus on Customer 360° banking requires
employees to have multi-product knowledge and skills.
The Bank has invested in training its employees and
enhancing their ability to comprehensively serve customers.
This has enabled teams to be agile in responding to
requirements of customers, and work collaboratively to
create innovative and personalised products & solutions
for customers.
Cloud Computing
API & Microservices
Data Engineering
DevOps
Project Management
SKILL
DOMAINS
Automation
Cybersecurity
Data Analytics
Data Visualisation
52
Annual Report 2022-23 HUMAN CAPITAL
INDUSTRY ACADEMIA INITIATIVES
Ascend Programme
Programme for graduates
from top-tier institutes
spread out over a year
ICICI Bank Probationary
Officers Programme
12-month programme designed
to develop a pool of first
level managers with banking
knowledge and required skillsets
Post Graduate Programme in
Relationship Management
21-day programme designed
to develop a cadre of banking
professionals adept in sales and
relationship management
ICICI Business Leadership
Programme – PG Certificate in
Securities Market
12-month programme designed
to develop professionals for
securities markets
ICICI Young Leaders Programme (YLP)
12-month career acceleration programme
designed for employees
The Bank has a capability building architecture spanning
across
leadership development,
digital and industry academia programmes to equip
employees with the required skillsets.
functional
training,
it builds
is the skills
The Bank has collaborated with academia partners to
provide a steady supply of quality, job-ready workforce.
industry academia
One of the key aspects of the
programmes
in the banking,
compliance, financial and digital services domains.
This aligns new hires to the culture of the Bank and
imparts functional knowledge in banking and related
subjects. Employees at frontline levels can also enrol in
ICICI Bank’s Probationary Officer programme and get
inducted as Probationary Officers after completing the
programme at ICICI Manipal Academy.
The Bank has a Young Leaders Programme (YLP), where
employees have the opportunity for higher education
(Post Graduate Programme). Those who successfully
complete this programme are deployed back into the
Bank in managerial roles.
The Bank is an employer of choice at premier management
and engineering campuses across the country.
Building a Digitally Capable Workforce
to skill employees under
As a part of 'Bank to BankTech' journey, the Bank
the Digital
continues
Academy in line with the vision of a scalable, future-
ready and data-driven organisation. Employees from
across groups undergo skilling in domains such as API
& Micro Services, Cloud Computing, Data Engineering,
Software Engineering, Artificial Intelligence and Project
Management.
To mitigate cybersecurity domain risks, the Bank conducted
a dedicated Cybersecurity Programme in partnership with
reputed institutes covering areas such as infrastructure
security, network security, digital forensics,
incident
management and network analysis.
thinking and artificial
To enable employees with diverse skills in data sciences,
design
intelligence, various
programmes and academies have been created across
the Bank. During fiscal 2023, the Bank delivered a total
of over 12 million learning hours for its employees; the
average learning person-days was around 12.2 days.
53
Integrated ReportStatutory ReportsFinancial Statements HUMAN CAPITAL
In order to periodically review and align learning content
and design, the Bank has constituted academic councils,
from business, human
comprising
resources and the Bank’s skilling partners. These councils
meet on a quarterly basis to review the alignment of the
existing content in view of evolving business needs.
representatives
Strengthening Risk and Compliance
Culture
As custodians of trust, employees are expected to
take decisions which are fair to customers and fair to
the Bank.
To enable our employees
to manage workplace
dilemmas, we have conducted workshops to orient
frontline
leadership on dealing with dilemmas they
may face during the course of their roles. The workshop
reinforces the need to apply the Bank’s framework while
dealing with such situations within the guardrails of
risk and compliance.
Job Rotation and Moving Across Roles
The Bank believes in investing in its employees to take up
challenging assignments and responsibilities early in the
career. The Bank’s ‘customer-oriented’ approach known
as Customer 360°, encourages employees to take up new
roles and not restrict themselves to specific areas. As a
part of their career and skill development, the Bank offers
opportunities to employees to explore diverse roles and
functions. This provides employees the chance to explore
and develop learning and expertise in different domains.
Leadership Development
Leadership Development Programmes and Leadership
Engagement Sessions are conducted on a regular basis
at the Bank.
The ‘Ignite' series is an ongoing initiative designed to
keep the employees abreast with breakthroughs in the
leadership, digital transformation, data
domains of
science and behavioural economics. The sessions provide
an opportunity to teams to engage with domain experts
and thought leaders in these areas.
ICICI Bank also partners with thought-leaders across
a wide spectrum of fields ranging from academia,
management to sports, to engage with and build
leadership perspectives.
Succession Planning
The Bank has institutionalised a succession planning
and leadership development initiative to identify and
groom leaders for next level roles. The Bank has a
robust succession planning process which, through the
Leadership Cover Index (LCI), closely tracks the depth of
leadership bench at the senior management positions.
The Bank has a strong bench for key positions and for
critical leadership roles.
CARE
Employees are the most
important capital for the
success of the Bank’s strategy and growth of the
organisation. The Bank believes in providing an enabling
work environment that helps employees to achieve
aspirational goals. The Bank is an inclusive and a caring
workplace, driven by meritocracy and equal opportunities
for all.
Employees at the Bank imbibe Officer Like Qualities
(OLQ) at the workplace and in all internal and external
engagements. These include respect for Brand ICICI,
dignified behaviour in dealing with everyone, managers
in position of authority can be demanding but not
demeaning, being humble & service-oriented and having
an attitude of learning. The Bank has a 24x7 emergency
helpline, accessible to all employees of the Bank. This
helpline facility has, over the years, provided crucial
support to employees and their immediate family members
during exigencies. To cater to emergencies, the Bank also
has a dedicated Quick Response Team (QRT) to assist
employees if they are in any distress. Each QRT is a
GPS-enabled vehicle, equipped with a stretcher and
other equipment.
To facilitate quick medical attention for employees in
medical emergencies, the Bank has tie-ups with more
than 100 hospitals in key cities across the country. The
Bank also provides comprehensive insurance coverage for
54
Annual Report 2022-23 HUMAN CAPITAL
EMPOWERING WOMEN EMPLOYEES
Travel
Accompaniment
Maternity
Leave
Child Care
Leave
Fertility Leave
Adoption Leave
all employees, across all grades. Group insurance facility
includes both the Personal Accidental Insurance Scheme
as well as the Group Life Insurance Scheme. The Bank also
facilitates a Parental Insurance Scheme at preferential
rates for its employees.
ICICI Bank has also set in place a robust grievance handling
mechanism to ensure that it is accessible to all employees.
Known as I-Care, this centralised and dedicated team
is equipped to handle employee queries and strives to
provide a speedy resolution.
The Bank's philosophy of meritocracy and equal
opportunity has led to a significant number of key
positions being held by women employees over the last
two decades. Conscious of life stage needs and safety of
women employees, a range of benefits and policies have
been curated. In addition to maternity leave, employees
have access to child care leave and adoption leave. 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.
The Bank also has a policy designed to provide financial
support to employees who have children with special
needs. Under this policy, the Bank covers expenses
incurred on improving the quality of life of employee’s
children with special needs
through specialised
education (at home or through a special-needs school),
specialised therapy, specialised equipment and periodic
treatment, if required (at hospital or at home).
Redressal) Act, 2013. The Bank has created awareness
about the Act through mandatory e-learning at the time
of induction. The Bank also regularly communicates
with employees regarding the mechanism for raising
complaints and the need for right conduct by all
employees. 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
structured mechanism to resolve them. The Call@I-Care
provides employees with a platform to deal with their
queries and concerns.
EMPLOYEE CONNECT AND
ENGAGEMENT
ICICI Bank believes in creating a culture of free and
open conversations. Forums of engagement have been
created where employees can engage with senior
leadership of the Bank and seek clarification on policy
and strategy.
Leadership Engagement Sessions
The Bank's senior management regularly engages with
employees physically and virtually to emphasise the
including ethical conduct,
Bank’s cultural anchors
adherence to regulations and compliance. Business
centre visits are also an
the
communication agenda. Employees are also kept
updated on the strategy and performance and progress
of the Bank through quarterly engagement on financial
performance by
the
leadership team.
the Executive Director with
important part of
Coffee & Conversation
initiative of
Through the
'Coffee and Conversation',
supervisors and HR managers engage with their teams
and new joiners on a regular basis. They cover different
areas like ICICI Bank's culture, importance of respect and
dignity in all engagements, and abiding by internal policy
commitments on diversity and human rights.
I-Engage
At the Bank, sexual harassment cases are handled as
per the guidelines set under The Sexual Harassment
of Women at Workplace (Prevention, Prohibition &
Onboarding sessions are conducted by Business and
HR managers to induct all new hires to the Bank's culture
and systems.
55
Integrated ReportStatutory ReportsFinancial Statements HUMAN CAPITAL
Diversity, Equity and Inclusion
ICICI Bank is committed to nurturing and promoting a culture of diversity, equity and inclusion. Our inclusive
culture, free from any biases, enables employees to work effectively.
To maintain our culture of diversity and equity, the objectives of our DE&I initiatives are:
•
•
Promote a culture of DE&I (Diversity, Equity & Inclusion) across the Bank
Ensure that ICICI continues to be an employer for diverse groups
• Maintain an environment of inclusion for all its employees
• Maintain a culture of no discrimination
The Bank is also committed to promote and respect human rights. The Bank has put in place policies to
provide an enabling and harassment-free work environment that respects and upholds individual dignity.
The Bank's Human Rights Policy is aligned with the United Nations Guiding Principles on Business and
Human Rights (UNGP) and International Labour Organisation’s Declaration on Fundamental Principles and
Rights at Work.
DIGITAL@HR
To deliver superior service at scale, our ethos of care and our strength of technology came together to craft an intuitive
and seamless experience for our employees.
Universe on the Move – the employee app
As an
integrated workplace technology solution
for HR and business transactions, the ‘Universe on
the Move' (UOTM) mobile application makes life
simple for employees every day – helping employees
complete HR and business transactions on the go.
Most employee services are available easily through
the Universe on the Move app at the click of a button.
What makes UOTM unique is that it also integrates
business transactions – such as facility to provide
business approvals or logging customer leads – in a
seamless manner.
Geo-fencing sign-in
Communication banners
Birthday feature
Investment declaration
Leave/ muster
Features
Business enablers
Lead
creation
Corporate
ecosystem vault
iMaintain
ATM
feedback
56
Annual Report 2022-23 HUMAN CAPITAL
LEARNING MATRIX – AI-ENABLED LEARNING ON THE GO
Easier search & recommendation
Learning calendar
AI-curated open content
Social learning
Feedback surveys
Leaderboard for learners
experience from the application stage to the onboarding
stage. Candidates can easily apply for relevant jobs at the
click of a button and be updated with real-time progress
of their job application. At any juncture, candidates can
reach out for support – through a comprehensive service
platform integrating chat, calls and emails offering a
seamless journey to aspiring ICICIans.
ICICI Bank Alumni Portal
The ICICI Bank Alumni Portal is a digital platform which
provides ex-employees with a smooth relieving experience
and access to important documentation after their exit
from the Bank.
As employee needs evolve, the Bank is committed to
serve employees with passion and care.
57
Learning Matrix
For any
learning-focussed organisation, constant
skilling, re-skilling, up-skilling and capability building
are key factors to enable employees to serve evolving
customer needs. The Learning Matrix is an AI-enabled
digital learning platform with a rich online library and
with features
learning and
access to curated open content. This AI-powered
platform recommends personalised learning programmes
and helps curate content based on in-platform feedback.
The Learning Matrix offers an intuitive and engaging
learning experience to employees on the go.
leaderboard, social
like
ICICI Careers
To attract the best talent, the Bank has created a
digital careers platform to provide aspirants a seamless
Integrated ReportStatutory ReportsFinancial Statements SOCIAL AND RELATIONSHIP CAPITAL
An ongoing engagement with our stakeholders is important for the
Bank to understand matters relevant to them and create sustainable
value for all.
to understand
The Bank continuously endeavours
the concerns and opinions expressed by stakeholders
and respond to them promptly.
The Bank holds regular interactions with customers,
investors, employees, regulators and engages with
communities and banking associations to remain informed.
CONTRIBUTING TO SOCIETY AND ENVIRONMENT THROUGH CSR
Trainees during
a session at ICICI
Academy for Skills
in Bengaluru.
A beneficiary
of the ‘Oilseed
Value Chain’ at a
sunflower farm at
Dhanora village
in Latur district,
Maharashtra.
58
A farmer in Daska
village in Sangrur
district, Punjab
removing stubble
from his field.
Solar panel
installation
in a school at
Mawbri village
in Ribhoi district,
Meghalya.
Annual Report 2022-23 SOCIAL AND RELATIONSHIP CAPITAL
ENGAGING WITH OUR KEY STAKEHOLDERS
Customers
We are committed to understanding the requirements and expectations of our customers, and continuously
engage with them to shape Customer 360° experiences.
How Do We Engage
Our Response
We engage through multiple channels like
their interaction with our frontline employees,
structured surveys for seeking feedback,
customer meets organised at business centres
and channels available for raising queries and
grievances.
Subjects considered important by our
customers:
•
•
•
•
Convenience
Responsive, skilled and considerate staff
Availability of relevant products and
services
Quick resolution of queries, requests
raised and grievance redressal
The Bank has put in place mechanisms to ensure customer
needs are appropriately addressed and right-selling of
products and services are ensured. Reiterating the principle
of 'Fair to Customer, Fair to the Bank' in every communication
to employees, the approach is to only offer products that
meet requirements of a customer. In the past, the Bank has
withdrawn products that could potentially lead to mis-selling
and inconvenience the customer. In line with the above principle,
the Bank has also moderated prepayment fee for certain
products/segments.
The Bank has a dedicated customer service team focussed
on improving process efficiency, reducing customer effort and
leveraging technology to enhance customer experience and
response time. This is accompanied with continuous upskilling
and knowledge building of staff. The Bank strongly follows a
policy of zero tolerance to unethical conduct by employees.
Shareholders/Investors
We believe that engaging with our shareholders and investors is important to understand market priorities
and drive business outcomes that can lead to sustainable value-creation for all stakeholders.
How Do We Engage
Our Response
There is continuous engagement with our
investors and shareholders either through the
annual general meeting, periodic conference
calls, analyst day event, emails or one-to-one
interactions. The Bank also has mechanisms
to address queries and grievances of our
shareholders and investors.
Subjects considered important by our
shareholders/investors:
•
Shareholder value creation
• Medium and long-term strategy
• Governance and ethical practices
•
•
•
Compliance
Transparency
Disclosure of non-financial metrics like
ESG
During fiscal 2023, the Bank significantly improved the return
on capital to shareholders. The Investor Relations team
provides details on the performance and strategic objectives
of the Bank during quarterly result calls and endeavours
to enhance disclosures in the investor presentations on
an ongoing basis depending on market conditions and
investors’ feedback. Continuous engagement is ensured
including meetings with the senior management. The team
also facilitates engagement with investors on topics like
Environmental, Social and Governance to provide insights
with regards to sustainability in the Bank’s own operations
and management of climate-related financial risks.
59
Integrated ReportStatutory ReportsFinancial Statements SOCIAL AND RELATIONSHIP CAPITAL
Society
The Bank is committed to contributing towards socio-economic development and, for the larger benefit of the
society, is undertaking corporate social responsibility activities across the length and breadth of the country.
Our Response
During fiscal 2023, the Bank spent `4.63 billion
towards CSR activities, and complied with the CSR rules under
the Companies Act, 2013. Environment and healthcare were
important focus areas for the Bank's CSR activities. Extensive
work was undertaken in the areas of watershed management,
rainwater harvesting, promoting environment conservation
and supporting healthcare facilities and access to affordable
treatments.
As a large financial institution, the Bank recognises the
importance of engaging with its value chain partners on ESG. In
fiscal 2023, the Bank developed a supplier code of conduct and
also checklists on ESG factors for onboarding of new vendors.
The Bank has started engaging with its vendors to sensitise
and build awareness regarding ESG, the need for adopting
green procurement standards and promote social factors like
human rights, diversity, equity and inclusion.
How Do We Engage
The Bank set up its philanthropic arm, ICICI
Foundation for Inclusive Growth (ICICI
Foundation), in 2008 for addressing critical
gaps in socio-economic development,
particularly in rural areas in India. Rural
development initiatives are also being
undertaken directly through the Bank's efforts
in promoting financial inclusion and inclusive
growth. ICICI Foundation, through its team of
about 800 people at the end of fiscal 2023,
extensively engages with local authorities and
people to understand needs and development
gaps.
Subjects considered important by local
authorities:
•
The key asks have been to address need
for health facilities, overcome water
shortage and prevent environment
degradation
Regulators
Being a systemically important bank in India, ensuring resilience and stability is important for the Bank.
How Do We Engage
Our Response
Our engagement with the regulators is
ongoing, through periodic meetings and other
forms of communications like emails, letters,
etc. The Bank also engages constructively
in policy forums organised by the regulator
and also respond to policy-related discussion
papers issued by the regulator.
The Bank has a dedicated team for communicating with
regulators and responding to their specific requirements in a
time-bound manner. The Bank has well-defined processes and
is leveraging technology to ensure monitoring and compliance
to regulatory developments. The Bank has increased focus on
building resilience and also participates in initiatives undertaken
by the regulator.
Subjects considered important by regulator:
•
Fair treatment of customers and grievance
redressal
Anti-money laundering and fraud risk
Operational risk including IT and
cybersecurity risk
Financial stability and resilience
Data, information and reporting quality
•
•
•
•
60
Annual Report 2022-23 SOCIAL AND RELATIONSHIP CAPITAL
Employees
Employees are the most important capital for the success of our strategy and growth of the organisation.
We believe in providing an inclusive workplace, driven by meritocracy and equal opportunities to all.
How Do We Engage
Our Response
Engagement with employees was through
various platforms including townhall sessions
with Directors, periodic communication
meetings and business centre visits by senior
leaders, an employee app, Universe on the
Move and query raising portal.
Subjects considered important by our
employees:
•
•
Risk and compliance culture
Enabling work culture with opportunities
for growth and learning
•
Culture of experimentation
• Meritocracy
•
Responsive grievance handling process
In the last two years, the Bank has significantly reorganised
its workforce with new roles aligned to market opportunities.
Promoting job rotation and encouraging employees to move
across roles is helping the Bank in providing career growth to
employees. The Bank believes in giving responsibility to young
capable professionals ahead of time and support them in their
next career move early on in their career. Learning and skill
development is an important value proposition provided to
employees. The focus of skill development initiatives is on
digital, functional and behavioural learning. The Bank has a
fair compensation policy which aligns rewards with prudent
risk taking. Care and well-being of employees is a key focus
area and the Bank has established policies in this regard. The
Bank has a culture where employees can raise issues freely
and expect their grievances/concerns will be handled in a
sensitive manner.
For more details on the Bank's HR practices, please refer to page 52 and the Business Responsibility and Sustainability Report.
(ICICI Foundation), has been
CORPORATE SOCIAL
RESPONSIBILITY (CSR)
fiscal 2023, the Bank spent `4.63 billion
During
towards CSR activities. Major focus areas for CSR
were healthcare, environment, societal development
and supporting sustainable
livelihoods. The Bank’s
philanthropic arm, the ICICI Foundation for Inclusive
Growth
the primary
for undertaking desired
implementing partner and
socio-economic
ICICI
Foundation has developed capabilities to understand
requirements at the grassroot
level and designing
activities or projects to create maximum impact. These
projects range from addressing
issues of resource
shortages, value chain development for agricultural
products
in smart
agricultural practices and other areas.
interventions. Over the years,
imparting skilled
training
to
Brood lac distribution to the beneficiaries of 'Lac Value Chain'
at Burhabahera village in Ranchi district, Jharkhand.
61
Integrated ReportStatutory ReportsFinancial Statements SOCIAL AND RELATIONSHIP CAPITAL
FOUR MAJOR FOCUS AREAS OF ICICI FOUNDATION
Affordable and Accessible Healthcare
Providing ambulances, healthcare
equipment and supporting treatment to
underprivileged individuals
Inclusive Approach for Societal
Development
Promoting education, sports,
entrepreneurship, support to armed
forces, disaster relief and projects
undertaken in aspirational districts
Sustainable Environment and Ecology
Tree plantation, sustainable forests,
watershed management, rainwater
harvesting and promoting renewable
energy capacity
Income Growth of Underprivileged
Skill development in urban and rural
areas, value chain development, climate
smart agriculture, Rural Self-Employment
Training Institutes
Through these activities, ICICI Foundation has impacted
the lives of about 10.9 million people across the length
and breadth of the country. The efforts have been taken
in 250 districts spread across the 36 states and union
territories of India. Projects in areas like watershed
management, value chain enhancement, afforestation,
sanitation, skilling,
responsible waste management
and others have been taken up in 38 districts out of
the 112 districts
identified under the Government's
Aspirational Districts Programme.
Some major efforts
environment during fiscal 2023 were as follows:
the areas of health and
in
Affordable and Accessible Healthcare
Healthcare came
into sharper focus following the
Covid-19 pandemic, when the need to significantly
strengthen the health infrastructure in the country was
recognised. Through the ICICI Foundation, the Bank
like providing
continued to take several measures
Dialysis machine donated at Sidhagiri Hospital in Kolhapur, Maharashtra.
62
Annual Report 2022-23 SOCIAL AND RELATIONSHIP CAPITAL
Blood donation camp organised at ICICI Bank's zonal office in
Jaipur, Rajasthan.
ambulances, blood donation and blood
transport
vehicles, dialysis machines and other health equipment
to government and charitable
institutions. Support
was provided to underprivileged individuals for cancer
care, bone marrow transplant, eye checkups and organ
transplants. During fiscal 2023, over 200 hospitals and
over 800,000 individuals benefitted from our healthcare
initiatives.
The Bank has committed to support the Tata Memorial
Centre (TMC) for expanding cancer treatment facility in
the country. The commitment of `12 billion over the next
four years is towards three centres being established
in Maharashtra, Punjab and Andhra Pradesh, and is
expected to double the capacity for treatment by TMC.
Sustainable Environment and Ecology
Environmental and ecological protection has become
a critical developmental need for
India, as several
regions face challenges of water shortage, decline in
soil quality and productivity of crops, and the need to
increase forest cover and create carbon sinks. The team
at ICICI Foundation engages with the local authorities
and administration to understand the challenges and
evaluate corrective measures that could be undertaken.
Several projects relating to water conservation and
rejuvenating water bodies have been undertaken. In
fiscal 2023, the water body rejuvenation implemented
projects had the potential for harvesting 8.4 billion litres
per annum of water, and rainwater harvesting projects
undertaken at 3,500 rural government schools had the
potential to harvest 740 million litres of water. Overall,
till date ICICI Foundation’s efforts has created 17.1 billion
litres of water harvesting potential in the country, much
of which are in water scarce areas.
Distribution of smokeless cookstove, as part of a green initiative,
at Kunariya village in Kutch district, Gujarat.
63
Integrated ReportStatutory ReportsFinancial Statements SOCIAL AND RELATIONSHIP CAPITAL
Lantena, a non-edible weed, being removed at the Bandipur
Tiger Reserve in Karnataka to help promote the growth of
native plants and provide wildlife with access to food.
More than 2.6 million trees have been planted till date
and interventions in 42 forest reserves have been made
by way of creating water bodies, habitat restoration,
weed removal and addressing man-wildlife conflicts
and protect biodiversity.
For more details on ICICI Foundation’s activities, refer to the
Bank’s ESG Report for fiscal 2023.
The Bank’s CSR expenses in the four major areas
during fiscal 2023 were:
`1.84 billion
Sustainable environment and ecology
`1.06 billion
Affordable and accessible healthcare
`0.76 billion
Income growth of underprivileged
`0.74 billion
Inclusive approach for societal development
64
FINANCIAL INCLUSION AND
RURAL DEVELOPMENT
INITIATIVES
There are specific segments of the rural economy that
require a more supportive and sensitive response to
their financial requirements and the Bank has taken
initiatives to address the needs of such segments. The
Self-Help Groups (SHGs) programme is an initiative that
has contributed to entrepreneurship among women in the
rural areas. A comprehensive suite of banking products,
including zero-balance savings account and term loans,
for meeting the business requirements of the women
of these SHGs is provided. Services are offered at their
doorstep, thus saving their time, money and effort to visit
the closest business centre.
ICICI Bank is also organising financial literacy camps
and has set up dedicated service desks at select
business centres 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 such services to SHGs. In addition to
direct efforts in reaching out to SHGs, the Bank has tied
up with about 546 non-government organisations
called Self-Help Promoting Institutions (SHPIs).
The Bank has provided loans to women beneficiaries
through over 785,000 SHG loans until March 31, 2023.
Of these, 337,000 SHGs 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 2.5 million customers through
microfinance institutions. The Bank also provides lending
to Joint Liability Groups (JLGs), which are semi-formal
groups from the weaker sections of society, through
microfinance companies. The
lending activities are
undertaken within the overall framework prescribed by
the RBI. The Bank also offers credit-related services to
microfinance companies for onward lending to the rural
population.
At March 31, 2023, the Bank had over 21.1 million Basic
Savings Bank Deposit Accounts (BSBDA), of which
around 4.4 million accounts were opened under the
Pradhan Mantri Jan Dhan Yojana. The Bank encourages
and enables these account holders to transact digitally.
Annual Report 2022-23
SOCIAL AND RELATIONSHIP CAPITAL
Digital Banking Unit (DBU)
Technology has played a key enabler in fostering financial
inclusion. The delivery of financial services in remote
under-banked areas has been
unbanked and
In fiscal 2023,
made possible due to digitisation.
launch of
the Government of
India announced the
Digital Banking Units (DBU) with the objective of
encouraging customers to undertake and experience the
benefits of digital transactions. The DBUs are primarily
fixed-point business units for delivering digital banking
products and services, with most services made available
in self-service mode. The Bank set up four such DBUs
which were launched in October 2022.
Key performance parameters of the DBUs during October 2022-March 2023 were as follows:
List of Activities
No. of accounts opened
No. of credit cards
No. of loans
Count of financial transactions
Count of non-financial transactions
No. of frauds
No. of grievances received
No. of digital awareness/literacy camps arranged
Number
326
181
52
33,444
2,068
Nil
6
51
65
Integrated ReportStatutory ReportsFinancial Statements ENVIRONMENT AND SUSTAINABILITY
The Bank is committed to adapting to emerging trends that will
shape the nation's transition to a low-carbon economy, with
appropriate assessment of risks and opportunities in delivering on
the objectives.
be uniformly applied to classify financial products and
services offered by the Bank as sustainable finance. The
framework specifies the eligibility criteria, the applicable
due diligence requirements and the verification process
for sustainable finance. The framework also aims to
establish a consistent and comprehensive methodology
for the classification and reporting of the Bank’s credit
facilities as sustainable.
At March 31, 2023, the Bank's outstanding portfolio to
sectors like renewable energy, electric vehicles, green
certified real estate, waste management, water and
sanitation, positive impact sectors like small-scale khadi,
handicrafts and lending to weaker section under priority
sector norms was about `556.00 billion. Of this, the
green financing portfolio accounted for about 21.4%.
SUSTAINABLE FINANCING
The Bank's efforts
sustainability
sustainable
corporate social responsibility.
financing,
in three strategic areas
in promoting environmental
including
its own operations and
in
is
SUSTAINABLE FINANCING
During fiscal 2023, the Bank made further efforts to
embed sustainable financing in its business strategy.
Consideration of Environmental, Social and Governance
(ESG) aspect in the Bank’s lending decisions and risk
important factors and
management framework are
various approaches have been implemented. The Social
and Environmental Management Framework (SEMF)
requires analysis of specific environmental and social
risks as part of the overall credit appraisal process for
assessing new project financing proposals. Key elements
of the assessment include screening through an exclusion
list drawn broadly from guidance by the International
Finance Corporation (IFC) and the list of highly polluting
sectors published by the Ministry of Environment,
Forests & Climate Change (MOEFCC) in India, seeking a
declaration
independent due
diligence as per the criteria defined in the SEMF.
from borrowers and
As part of the credit evaluation process for all large
corporate lending proposals, borrower ESG scores from
external agencies, if available, are considered. Further,
the Bank has developed sector-specific checklists
to facilitate assessment of ESG and climate-related
physical and
in
sectors like power, transportation, cement, steel and
others could be exposed to. This helps the Bank in
profiling borrowers as ‘High’, ‘Medium’ and ‘Low’, based
on their ESG-related risks and maturity in terms of
policies and processes deployed to address these risks.
that a borrower
transition
risks
During fiscal 2023, the Bank developed a framework for
Sustainable Financing, aimed at providing guidance on
green/ social (sustainable) / sustainability-linked lending. It
outlines the methodology and associated procedures to
66
Annual Report 2022-23 ENVIRONMENT AND SUSTAINABILITY
ADDRESSING CLIMATE-RELATED
RISKS AND OPPORTUNITIES
Climate change and its impact on the economy and
financial systems is a tangible risk and requires close
monitoring. The Bank’s approach to analysing climate
risks include developing methods to integrate climate risk
in the risk management framework and begin testing the
resilience of the lending portfolio to climate risks which
can be categorised into transition and physical risks.
The Bank has formulated an approach to address risks
emanating from climate change, as part of its Climate
Risk Management Framework. The scope of
the
framework comprises assessment of impact of climate
change on the Bank’s own operations, climate risk
management of the Bank’s loan book and integration of
material climate risks into the existing risk management
framework. The framework will be periodically reviewed
for aligning with regulatory guidance on climate risks.
As climate risk management is at a nascent stage in the
Indian banking industry and regulations in this regard
are being formulated, the Bank will ensure that gradually
the approaches evolve and get refined for integration of
climate risk management within the risk management
framework.
the
impact
rapidly evolving
Further,
regulations, policies,
technology and law on climate change and climate
lending practices
action could significantly
as well as enhance associated risks for the Bank.
Navigating through this dynamic environment is crucial
for the Bank's sustainable growth. The Bank will pro-
actively integrate these risks into the Bank's credit
evaluation process. Further, risks could arise with
changing investor and customer expectations. The Bank
is cognisant of transition from fossil fuel-based energy
to renewable sources, and will capitalise on business
opportunities in this transition based on selection of
counterparty and appropriate risk-return in accordance
with the Enterprise Risk Management framework.
The Bank has emphasised the need to sharpening the
focus on measuring its carbon footprint. During fiscal
2023, evaluating Scope 3 emissions in own operations
was taken up and the Bank is considering various pilot
projects to assess key data and information requirements
for calculating carbon and GHG (Greenhouse Gas)
emissions in accordance with established protocols.
Key Focus Areas for Addressing Climate Risks
Own Operations
Sustainable Financing
Risk Management
The Bank is working towards
reducing its Scope 1 and Scope 2
emissions. A roadmap to reduce
Scope 2 emissions and the
overall emission intensity is being
pursued. The Bank is in the process
of evaluating Scope 3 emissions
from own operations. The Bank is
working towards identifying and
putting in place the elements
required to achieve carbon
neutrality in own operations.
The Bank has developed a framework
for Sustainable Financing, which
provides guidance on eligibility criteria
for sustainable/sustainability-linked
lending, guidance on assessment of
facilities, monitoring and reporting
of such facilities. This is the first step
towards bringing sharper focus in the
Bank's sustainable lending practices.
The Bank is also committed to
extending its expertise to customers
that are transitioning to decarbonise
their business activities.
The Bank has formulated an approach
to address risks emanating from
climate change, as part of a Climate
Risk Management Framework
which comprises assessment of
impact of climate change on the
Bank’s own operations, climate risk
management of the Bank’s loan
book and integration of material
climate risks into the existing risk
management framework.
The Bank has been participating
in pilots conducted by the regulator
to evaluate impact of climate-related
financial risks on the Indian
banking sector.
67
Integrated ReportStatutory ReportsFinancial Statements ENVIRONMENT AND SUSTAINABILITY
To facilitate the above initiatives in the Bank, developing
proficiency
in understanding ESG-related risks and
opportunities, and evaluation of ESG/climate-related
risks has been embedded into the training imparted to
a core team within the risk management group and
other critical functions.
Bank has developed a Suppliers' Code of Conduct.
The Code encourages vendors to adopt sustainable
practices like efficient use of energy and water,
waste management, and embed good practices like
occupational health and safety, human rights and
others in their operations.
ENVIRONMENTAL SENSITIVITY IN
OWN OPERATIONS
The Bank's ESG Policy emphasises its commitment to
conduct business sustainably and efficiently, thereby
reducing the environmental impact from own premises
and operations. The key areas of focus are digitisation,
minimising GHG emissions, energy conservation, water
conservation, waste management and sustainable
procurement.
During fiscal 2023, efforts were further expanded to
identify and address critical areas to decarbonise own
operations. Some key efforts included:
•
•
•
The Bank has developed Green Procurement
standards to promote purchase of environment-
friendly goods.
The Bank has shifted to using FSC (Forest
Stewardship Council) certified recycled paper for
pre-print forms at its branches. This provides about
37% reduction in carbon emissions compared to
conventional paper.
The Bank increased the proportion of renewable
energy in total electricity consumption from 7.0% in
fiscal 2022 to 9.0% in fiscal 2023.
The Bank has shifted to use of electric vehicles
for transport of Bank's staff at specific locations
where call-centres are present. On an average,
about 66,000 kms is covered every month which
provides an abatement of approximately 15 tCO2e*
on a monthly basis.
The Bank has commissioned a 500 litres per day
capacity machine
for converting atmospheric
moisture into clean potable water at one of the data
centres. The water-from-air system is approved by
the Environmental Protection Training and Research
Institute as an environment-friendly technology. The
machine produces approximately 350 litres of water
per day and has significantly eliminated reliance on
packaged drinking water.
The Bank has set up charging stations for electric
vehicles at the ICICI Service Centre (Corporate Office)
and the learning centre at Khandala. Both these are
in Maharashtra.
To strengthen engagement of
the Bank’s
Infrastructure Management and Services Group
(IMSG) with vendors on ESG and sustainability, the
•
•
•
•
68
*tCO2e - Tonnes of carbon dioxide equivalent.
The charging station for electric vehicles at ICICI Service Centre
in Bandra-Kurla Complex, Mumbai.
Annual Report 2022-23 ENVIRONMENT AND SUSTAINABILITY
•
ICICI Bank’s largest office premise at Gachibowli
in Hyderabad, was awarded the ‘Platinum’ rating
in the Green Existing Building category by the
IGBC* (Indian Green Building Council). The rating
is focussed on sustained performance of buildings
with respect to the enabling of green features which
includes sourcing of 100% electricity from renewable
energy sources, 100% recycling and reuse of the
waste water, 3-stage high efficiency air filtration
system to improve indoor air quality, at least 70%
recycling and reuse of food waste and adoption of
electric vehicle fleet for transportation. With this, by
the end of fiscal 2023, about 4.42 million square feet
(34% of the Bank’s total own area) is IGBC green
certified, up from 2.28 million square feet at the end
of fiscal 2019.
facilitate
the above,
in addition
To
to creating
awareness within the IMSG and training the relevant
team members, engagement with vendors of IMSG was
undertaken during fiscal 2023 to create awareness
about the Bank's approach on adoption of sustainable
practices and to communicate the Bank’s intent to
evaluate them on environmental and social factors.
ICICI Bank office at Gachibowli, Hyderabad, rated 'Platinum' by
IGBC in 'Green Existing Building' category (inset: IGBC Plaque).
Promoting Environment and Sustainability Through CSR
As part of CSR initiatives being carried out through ICICI Foundation, ICICI Bank has extensively
supported efforts for environmental protection and improving biodiversity. Projects have been executed
in the areas of water conservation, forest conservation and afforestation and protecting biodiversity,
which are contributing towards restoring ecological balance in the areas of intervention.
Additionally, projects have been undertaken to significantly abate carbon emissions. These include:
•
Working with farmers in 600 villages in northern India to stop burning crop residue/stubble that
causes significant pollution during October-November every year. Through the efforts, these
villages have been freed from pollution caused by the stubble (Parali) burning, and creating a
positive impact of abating 1.92 million tonnes of CO2 emissions and 0.19 million tonnes of carbon
monoxide. The impact and emission reduction was assessed by Punjab Agricultural University.
•
As part of waste management initiatives, about 200 electric vehicles were provided to civic
authorities for garbage collection. This averted at least 500 tonnes of CO2 emissions during the year.
There are several other interventions as part of CSR activities, where the Bank has not evaluated the
impact on reduction of GHG emissions.
*The Indian Green Building Council (IGBC), part of the Confederation of Indian Industry (CII), is the country’s premier body for green
building certification. The ratings are awarded based on assessment of energy efficiency, use of renewable energy, water conservation,
waste management, indoor air quality and sustainable sourcing of material. IGBC rating levels (in ascending order) are: Certified, Silver,
Gold and Platinum.
69
Integrated ReportStatutory ReportsFinancial Statements ENVIRONMENT AND SUSTAINABILITY
The Bank’s GHG emissions in its own operations in fiscal
2023 were:
Emission Category
Owned cars (Scope 1)
High speed diesel consumption in
DGs (Scope 1)
Refrigerant emissions (Scope 1)
Fire extinguishers (Scope 1)
Value (tCO2e4)
4.53
6,413.64
16,552.92
844.12
Electricity purchased (Scope 2)
125,950.45
In ‘000 tCO2e
Scope 1
Scope 2
Scope 33 (business travel)
Total
Emission intensity for total
Scope 1 and Scope 2 (in
tCO2e per ` crore turnover)
Emissions intensity for total
Scope 1 and Scope 2
(in tCO2e per FTE5 employee)
Fiscal
2021
Fiscal
2022
Fiscal
2023
23
114
-
137
26
116
-
142
24
126
18
168
1.40
1.36
1.16
1.39
1.35
1.16
is yet to announce a target for
While the Bank
carbon neutrality/net zero, the above efforts are a
reflection of the deep-rooted commitment to managing
the impact of our operations on the environment.
During fiscal 2023, the Bank expanded its efforts
to identify and address critical areas to decarbonise
its operations
GHG EMISSIONS IN OWN
OPERATIONS
The Bank continued with
its practice to get an
independent assurance of the Bank’s Scope 11 and
Scope 22 emissions undertaken. For fiscal 2023, the
limited assurance assignment was taken up by DNV
Business Assurance India Private Limited for the Bank’s
operations being carried out at its towers, data centres,
business centres and offices. The limited assurance of
Scope 1 and Scope 2 emissions for fiscal 2022 was
conducted by TUV India Private Limited.
1 Scope 1 emissions include CO2 emissions from the combustion of fuel in diesel-generating sets and company-owned vehicles,
emissions due to loss of refrigerants and emissions due to CO2 based fire extinguishers. The emissions from diesel-generating sets was
estimated using the spend-based method. The emissions from fire extinguishers and owned vehicles was based on actual consumption.
2 Scope 2 emissions are due to electricity purchased from the grid. The estimation was based on actual consumption of electricity, and
using the grid emission factor published by the Central Electricity Authority, India.
3 Scope 3 emissions have been estimated for business-related travel by employees through modes like aircraft, train, buses, and cars.
Emissions from hotel stay during such travel is not included. As per internal estimates, air travel contributed the highest emissions
followed by car travel. For the purpose, DEFRA (Department for Environment, Food and Rural Affairs) 2022 emission factors have been
considered.
4 tCO2e - Tonnes of carbon dioxide equivalent.
5 One Full Time Equivalent (FTE) employee - One full time employee working on a full time schedule over the year.
70
Annual Report 2022-23 DIRECTORS’ REPORT
Your Directors have pleasure in presenting the Twenty-Ninth Annual Report of ICICI Bank Limited (ICICI Bank/the Bank)
along with the audited financial statements for the year ended March 31, 2023.
FINANCIAL HIGHLIGHTS
The financial performance for fiscal 2023 is summarised in the following table:
` in billion, except percentages
Fiscal 2022
Fiscal 2023
% change
Net interest income and non-interest income
Operating expenses
Core operating profit
Provisions and contingencies (excluding tax)
Profit before tax excluding treasury gains
Treasury gains
Profit before tax
Tax
Profit after tax
650.80
267.33
383.47
86.41
297.06
9.03
306.09
72.70
233.39
820.12
328.73
491.39
66.66
424.73
(0.52)
424.21
105.25
318.96
26.0%
23.0%
28.1%
(22.9)%
43.0%
(105.8)%
38.6%
44.8%
36.7%
` in billion, except percentages
Fiscal 2022
Fiscal 2023
% change
Consolidated profit before tax and minority interest
Consolidated profit after tax and minority interest
349.96
251.10
472.55
340.37
35.0%
35.6%
DIVIDEND
Your Bank has a consistent dividend payment history. Your Bank’s Dividend Distribution Policy is based on the profitability
and key financial metrics, capital position & requirements and the regulations pertaining to the payment of dividend. The
Board of Directors has recommended a dividend of ` 8.00 per equity share for the year ended March 31, 2023.
APPROPRIATIONS
The Bank has appropriated accumulated profit as follows:
` in billion
Profit after tax
Profit brought forward
Accumulated profit (before appropriations)
Appropriations:
Fiscal 2022
Fiscal 2023
233.39
310.09
543.48
318.96
436.71
755.67
To Statutory Reserve, making in all ` 435.78 billion
58.35
79.74
To Special Reserve created and maintained in terms of Section 36(1)(viii) of
the Income Tax Act, 1961, making in all ` 154.49 billion
To Capital Reserve, making in all ` 150.42 billion
To Investment Fluctuation Reserve, making in all ` 21.76 billion2
To Revenue and other reserves, making in all ` 109.37 billion
Dividend paid on equity shares3
Balance carried over to balance sheet
15.00
15.741
3.83
0.00
13.85
436.71
25.65
0.88
1.04
50.00
34.79
563.57
1 The Bank had shifted certain securities from held-to-maturity (HTM) category to available-for-sale (AFS) category on May 3, 2017.
Reserve Bank of India (RBI) through its order dated May 3, 2021 directed the Bank to appropriate the net profit made on sale of these
investments during fiscal 2018 to capital reserve. Accordingly, an amount of ` 15.09 billion was transferred from balance in profit and
loss account to capital reserve during fiscal 2022.
71
Integrated ReportStatutory ReportsFinancial Statements 2 Represents an amount transferred to Investment Fluctuation
Reserve (IFR) on net profit on sale of AFS and held-for-trading
(HFT) investments during the period. The 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. The Bank can draw down balance available in IFR in
excess of 2% of its AFS and HFT portfolio.
3 Represent dividend declared for previous financial year and paid
in current financial year.
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.
The Bank prepares its financial statements 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 is
undertaken for the position at March 31, 2023. 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.
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 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 the RBI
circular, no disclosure on divergence in asset classification
and provisioning for NPAs is required with respect to RBI’s
supervisory process for fiscal 2022.
SHARE CAPITAL
SUBSIDIARY, ASSOCIATE AND JOINT
VENTURE COMPANIES
There was no change in the subsidiaries and associates
of the Bank during fiscal 2023. The Bank does not have
any joint venture company. As at March 31, 2023, your
Bank had following subsidiaries (15) and associate (9)
companies:
100
Name of the subsidiary company % of shares held
100
ICICI Bank UK PLC
100
ICICI Bank Canada
ICICI Securities Limited1
74.85
ICICI Securities Holdings, Inc.2
100
ICICI Securities, Inc.3
100
ICICI Securities Primary Dealership
Limited
ICICI Venture Funds Management
Company Limited
ICICI Home Finance Company
Limited
ICICI Trusteeship Services Limited
ICICI Investment Management
Company Limited
ICICI International Limited
ICICI Prudential Pension Funds
Management Company Limited4
ICICI Prudential Life Insurance
Company Limited
ICICI Prudential Asset Management
Company Limited
ICICI Prudential Trust Limited
51.00
50.80
100
100
100
100
51.27
100
100
During the year under review, the Bank allotted 34,044,356
equity shares of ` 2.00 each pursuant to exercise of stock
options under the ICICI Bank Employees Stock Option
Scheme - 2000. For details refer to Schedule 1 of the
financial statements.
1 The Board of Directors of the Bank on June 29, 2023 have
approved the draft scheme of arrangement for delisting of
equity shares of ICICI Securities Limited (ISEC) by issuing equity
shares of the Bank to the public shareholders of ISEC in lieu of
cancellation of their equity shares in ISEC, thereby making ISEC
a wholly-owned subsidiary of the Bank, in accordance with
Chapter VI, Part C, Regulation 37 of the Securities and Exchange
72
DIRECTORS’ REPORTAnnual Report 2022-23 Board of India (Delisting of Equity Shares) Regulations, 2021,
subject to receipt of requisite approvals.
2 ICICI Securities Holdings, Inc. is a wholly owned subsidiary of
ICICI Securities Limited.
3 ICICI Securities, Inc. is a wholly owned subsidiary of ICICI
Securities Holdings, Inc.
4 ICICI Prudential Pension Funds Management Company Limited
is a wholly owned subsidiary of ICICI Prudential Life Insurance
Company Limited.
Name of the associate company
ICICI Lombard General Insurance
Company Limited1
I-Process Services (India) Private
Limited2
NIIT Institute of Finance Banking and
Insurance Training Limited
ICICI Merchant Services Private Limited
India Infradebt Limited
Arteria Technologies Private Limited
Rajasthan Asset Management
Company Private Limited3
OTC Exchange of India3
Falcon Tyres Limited3
% of shares held
48.02
19.00
18.79
19.01
42.33
19.98
24.30
20.00
26.39
1 The Board of Directors of the Bank have approved an increase
in shareholding in ICICI Lombard General Insurance Company
Limited, in multiple tranches up to 4.0% additional shareholding,
as permissible under applicable law, to ensure compliance with
the Section 19(2) of the Banking Regulation Act, 1949 and
make it a subsidiary of the Bank, subject to receipt of necessary
regulatory approval(s). The Bank would acquire atleast 2.5%
stake out of the above 4.0% before September 9, 2024. As on
the date of this Report, necessary approval(s) are awaited.
2 The Board of Directors of the Bank have approved the proposal
for making I-Process Services (India) Private Limited a wholly-
owned subsidiary of the Bank, subject to receipt of requisite
regulatory and statutory approval(s). As on the date of this
Report, necessary approval(s) are awaited.
3 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’.
12 - 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 the 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”.
The Bank will make available separate audited financial
statements of the subsidiaries to any Member upon
request. These documents/details will be available on the
Bank's website at https://www.icicibank.com/about-us/
annual and will also be available for inspection by any
Member or trustee of the holder of any debentures of the
Bank. 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.
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.
HIGHLIGHTS OF PERFORMANCE OF
SUBSIDIARIES, ASSOCIATES AND JOINT
VENTURE COMPANIES AND THEIR
CONTRIBUTION TO THE OVERALL
PERFORMANCE OF THE COMPANY
DIRECTORS AND OTHER KEY MANAGERIAL
PERSONNEL
Changes in the composition of the Board of
Directors and other Key Managerial Personnel
(KMP)
The performance of subsidiaries and associates and
their contribution to the overall performance of the Bank
as on March 31, 2023 is given in “Consolidated Financial
Statements of ICICI Bank Limited - Schedule 18 - Note
The Board at its Meeting held on April 23, 2022 and the
Members at the Annual General Meeting (AGM) held on
August 30, 2022 approved the appointment of Rakesh
Jha as a Wholetime Director (designated as Executive
73
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements Director) for a period of five years effective May 1, 2022 or
the date of approval of his appointment by RBI, whichever
is later. Rakesh Jha ceased to be the Group Chief Financial
Officer effective May 1, 2022 and consequently KMP. RBI,
through its letter dated September 2, 2022, communicated
its approval for the appointment of Rakesh Jha as an
Executive Director of the Bank for a period of three years
from the date of its approval. Accordingly, Rakesh Jha
assumed office as Executive Director and KMP effective
September 2, 2022. The Board at its Meeting held on
April 23, 2022 approved the appointment of Anindya
Banerjee as the Group Chief Financial Officer and KMP of
the Bank with effect from May 1, 2022.
The Board at its Meeting held on June 28, 2022 and the
Members at the AGM held on August 30, 2022 approved
the following:
(a)
(b)
(c)
Re-appointment of Neelam Dhawan as an
Independent Director of the Bank for a second term
commencing from January 12, 2023 to January 11,
2026.
Re-appointment of Uday Chitale as an Independent
Director of the Bank for a second term commencing
from January 17, 2023 to October 19, 2024.
Re-appointment of Radhakrishnan Nair as an
Independent Director of the Bank for a second term
commencing from May 2, 2023 to May 1, 2026.
The Board at its Meeting held on October 22, 2022,
based on the recommendation of the Board Governance,
Remuneration & Nomination Committee
(BGRNC),
approved the re-appointment of Sandeep Bakhshi as
Managing Director & Chief Executive Officer of the Bank for
a period of three years with effect from October 4, 2023 to
October 3, 2026, subject to the approval of Members and
RBI. The re-appointment is being proposed in the Notice of
the forthcoming AGM through item no. 13.
The Board at its Meeting held on May 28, 2023, based on the
recommendations of the BGRNC, approved the following:
(a)
(b)
Re-appointment of Hari L. Mundra as an Independent
Director of the Bank for a second term commencing
from October 26, 2023 to October 25, 2024, subject
to the approval of Members.
Re-appointment of B. Sriram as an Independent
Director of the Bank for a second term commencing
from January 14, 2024 to January 13, 2027, subject to
the approval of Members.
(c)
Re-appointment of S. Madhavan as an Independent
74
Director of the Bank for a second term commencing
from April 14, 2024 to April 13, 2027, subject to the
approval of Members.
The resolutions for the above re-appointments are being
proposed in the Notice of the forthcoming AGM through
item nos. 6 to 8.
The Board also at its Meeting held on May 28, 2023
noted that the Members had approved the appointment
of Sandeep Batra as Executive Director of the Bank for a
period of five years effective from the date of approval of
RBI. The effective date of the same was from December 23,
2020. The current tenure of Sandeep Batra as Executive
Director of the Bank as per RBI approval, which was for
three years, ends on December 22, 2023. Based on the
recommendation of the BGRNC, the Board approved the
re-appointment of Sandeep Batra as Executive Director of
the Bank for a further period of two years with effect from
December 23, 2023 to December 22, 2025, subject to the
approval of RBI. This term of two years is within the five
years term as previously approved by the Members.
Vishakha Mulye stepped down from her position as
Executive Director with effect from May 31, 2022
consequent to her decision to pursue career opportunities
outside the ICICI Group. Anup Bagchi ceased to be a
Director of the Bank with effect from close of business
hours on April 30, 2023 pursuant to his appointment as
Managing Director & CEO of ICICI Prudential Life Insurance
Company Limited with effect from June 19, 2023. To ensure
a seamless transition, he assumed the office of Executive
Director & Chief Operating Officer of ICICI Prudential Life
Insurance Company Limited with effect from May 1, 2023.
The Board acknowledges the valuable contribution and
guidance provided by both the Directors.
The Board at its Meeting held on March 16, 2023, based
on the recommendation of the BGRNC, approved the
appointment of Prachiti Lalingkar as the Company
Secretary & Compliance Officer and KMP of the Bank
effective April 1, 2023 pursuant to the superannuation
of Ranganath Athreya in July 2023. Ranganath Athreya
ceased to be the Company Secretary & Compliance Officer
and KMP of the Bank with effect from close of business
hours on March 31, 2023.
As on the date of this report, in terms of Section
203(1) of the Companies Act, 2013, Sandeep Bakhshi,
Managing Director & CEO, Rakesh Jha, Executive
Director, Sandeep Batra, Executive Director, Anindya
Banerjee, Group Chief Financial Officer and Prachiti
DIRECTORS’ REPORTAnnual Report 2022-23 Lalingkar, Company Secretary are the Key Managerial
Personnel of the Bank.
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 and
Regulation 16 of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended (SEBI Listing Regulations)
which have been relied on by the Bank and were placed at
the Board Meeting held on April 22, 2023. In the opinion of
the Board, the Independent Directors fulfil the conditions
specified in the Companies Act, 2013 and the SEBI Listing
Regulations and are independent of the Management.
Retirement by rotation
In terms of Section 152 of the Companies Act, 2013,
Sandeep Bakhshi would retire by rotation at the
forthcoming AGM and, being eligible, offers himself for re-
appointment.
AUDITORS
Statutory Auditors
At the AGM held on August 30, 2022, the Members
approved the re-appointment of M/s M S K A & Associates,
Chartered Accountants (hereinafter referred to as M S K A
& Associates) and M/s KKC & Associates LLP, Chartered
Accountants (formerly M/s Khimji Kunverji & Co LLP),
(hereinafter referred to as KKC & Associates LLP) as the
joint statutory auditors to hold office from the conclusion
of the Twenty-Eighth AGM till the conclusion of the
Twenty-Ninth AGM. As per the RBI guidelines, the joint
statutory auditors of the banking companies are allowed
to continue for a period of three years, subject to fulfilling
the prescribed eligibility norms. Accordingly, M S K A &
Associates, Chartered Accountants and KKC & Associates
LLP, Chartered Accountants would be eligible
for
re-appointment at the conclusion of the forthcoming AGM.
Based on the recommendation of the Audit Committee,
the Board has proposed the re-appointment of M S K A &
Associates, Chartered Accountants and KKC & Associates
LLP, Chartered Accountants as the joint statutory auditors
for the year ending March 31, 2024 (fiscal 2024). The joint
statutory auditors will hold office from the conclusion of
the forthcoming AGM till the conclusion of Thirtieth AGM.
Their re-appointment has been approved by RBI. The
re-appointment of the joint statutory auditors is proposed
to the Members in the Notice of the forthcoming AGM
through item nos. 4 and 5.
There are no qualifications, reservation or adverse remarks
made by the joint 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 2023. 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 the report
save and except disclaimer made by them in discharge of
their professional obligation.
The Annual Secretarial Compliance Report for fiscal 2023
is available on the website of the Bank at https://www.
icicibank.com/about-us/disclosures-to-stock-exchanges
and on the websites of the stock exchanges i.e. BSE
Limited (BSE) at www.bseindia.com and National Stock
Exchange of India Limited (NSE) at www.nseindia.com.
Maintenance of Cost Records
Being a banking company, the Bank is not required
to maintain cost records as specified by the 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 and any Member
interested in obtaining a copy of the Annexure may write
to the Company Secretary of the Bank.
75
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements 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
auditors that it is in compliance with the Foreign Exchange
Management Act, 1999 provisions with respect to
investments made in its consolidated subsidiaries and
associates during fiscal 2023.
RELATED PARTY TRANSACTIONS
The Bank has a Board-approved Group Arm’s Length
Policy which requires transactions with the group
companies to be at arm’s length. All the related party
transactions between the Bank and its related parties,
entered during the year ended March 31, 2023, were on
arm’s length basis and were in the ordinary course of
business.
There were no related party transactions to be reported
under Section 188(1) of the Companies Act 2013, in
Form No. AOC-2, pursuant to Rule 8(2) of the Companies
(Accounts) Rules, 2014.
All related party transactions as required under Accounting
Standard AS-18 are reported in note no. 46 of schedule
18 - Notes to Accounts of standalone financial statements
and note no. 2 of schedule 18 - Notes to Accounts of
consolidated financial statements of the Bank.
The Bank has a Board-approved Related Party
Transactions Policy, which has been disclosed on the
website of the Bank and can be viewed at (https://www.
icicibank.com/about-us/other-policies).
ANNUAL RETURN
The Annual Return in Form No. MGT-7 will be hosted on
the website of the Bank at (https://www.icicibank.com/
about-us/annual).
76
BUSINESS RESPONSIBILITY AND
SUSTAINABILITY REPORT
The Business Responsibility and Sustainability Report as
stipulated under Regulation 34(2)(f) of the SEBI Listing
Regulations will be hosted on the Bank’s website at
(https://www.icicibank.com/about-us/annual) as part of
the green initiative of the Bank. Any Member interested in
obtaining a copy of the Report may write to the Company
Secretary of the Bank.
The Bank has been releasing the Environmental, Social
and Governance Report since fiscal 2020. The report for
fiscal 2023 will be hosted on the Bank’s website at (https://
www.icicibank.com/about-us/annual).
INTEGRATED REPORTING
The Bank has adopted the principles of the International
Integrated Reporting Framework as developed by the
International Integrated Reporting Council in its Annual
Report since fiscal 2019. For accessing the Report for
fiscal 2023, please refer to the Integrated Report section
of the Annual Report 2022-23.
RISK MANAGEMENT FRAMEWORK
The Bank’s risk management framework is based on
a clear understanding of various risks, disciplined risk
assessment & measurement procedures and continuous
monitoring. The Board of Directors has oversight on all
the risks assumed by the Bank. Specific committees have
been constituted to facilitate focused oversight of various
risks, as follows:
•
The Risk Committee of the Board, reviews, inter alia,
risk management policies of the Bank pertaining to
credit, market, liquidity, operational and outsourcing
risks and business continuity management. 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 combined scenarios. The ICAAP exercise covers
the domestic and overseas operations of the Bank,
banking subsidiaries and non-banking subsidiaries.
The Committee reviews setting up of limits on any
industry or country, migration to the advanced
approaches under Basel
implementation
of Basel Ill and the activities of the Asset Liability
Management Committee. The Committee reviews the
level and direction of major risks pertaining to credit,
II and
DIRECTORS’ REPORTAnnual Report 2022-23 market, liquidity, operationaI, reputation, technology,
information security, compliance, group 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.
The Credit Committee of the Board, apart from
sanctioning credit proposals based on the Bank’s
credit approval authorisation framework, reviews
developments in key industrial sectors (along with
exposure to these sectors), the Bank’s exposure
to large borrower accounts and borrower groups.
The Credit Committee also reviews major credit
portfolios, non-performing loans, accounts under
watch, overdues, incremental sanctions, etc.
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.
Policies approved from time to time by the Board of
Directors/Committees of the Board form the governing
framework for each type of risk. The business activities
are undertaken within this policy framework. Independent
groups and 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 Bank has dedicated groups, namely, the Risk
Management Group, Compliance Group, Corporate Legal
Group, Internal Audit Group and the Financial Crime
Prevention & Reputation Risk Management Group, with a
mandate to identify, assess and monitor all of the Bank’s
principal risks in accordance with well-defined policies
and procedures. The Risk Management Group is further
organised into 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 purposes, reports to
an Executive Director of the Bank. 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 Group acts as an independent entity
and is responsible to evaluate and provide objective
assurance on the effectiveness of internal controls, risk
management and governance processes within the Bank
and suggest improvements. The Internal Audit Group
maintains appropriately qualified personnel to fulfill its
responsibilities. 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
Workplace (Prevention, Prohibition & Redressal) Act,
2013’. The Bank has complied with provisions relating to
the constitution of Internal Committee under the said Act.
The details pertaining to number of complaints during the
year has been provided below:
(a) number of complaints filed during the financial year:
43
(b) number of complaints disposed of during the financial
year: 43
(c)
number of complaints pending1 at end of the financial
year: Nil
1 All complaints received during fiscal 2023 have been closed
within the applicable turnaround time of 90 days.
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, 2023, Independent Directors
77
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements constituted a majority on most of the Committees and most
of the Committees were chaired by Independent Directors.
I. Philosophy of Corporate Governance
At ICICI Bank, we are committed to maintain the
highest standards of governance in the conduct
of our business and continuously strive to create
lasting value for all our stakeholders. We focus on
maintaining comprehensive compliance with the
laws, rules and regulations that govern our business
and promote a culture of accountability, transparency
and ethical conduct across the Bank.
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
at (https://www.icicibank.com/managed-assets/docs/
personal/general-links/code_of_business_conduct_
ethics.pdf). Pursuant to the SEBI Listing Regulations,
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.
Code of Conduct as prescribed under the
Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations,
2015
In accordance with the requirements of the Securities
and Exchange Board of India (Prohibition of Insider
Trading) Regulations, 2015, the Bank has adopted
the Code on Prohibition of Insider Trading.
Material Subsidiaries
In accordance with the requirements of the SEBI
Listing Regulations, the Bank has formulated a
Policy for determining Material Subsidiaries and the
same has been hosted on the website of the Bank at
(https://www.icicibank.com/about-us/other-policies).
The Bank does not have any unlisted material
subsidiary. ICICI Prudential Life Insurance Company
Limited is a material listed subsidiary of the Bank in
terms of the provisions of the SEBI Listing Regulations.
The additional details with regard to ICICI Prudential
Life Insurance Company Limited are as follows:
78
Date of
incorporation
Place of
incorporation
Statutory
Auditors
July 20, 2000
Mumbai
B S R & Co. LLP
Chartered Accountants
Firm Registration No. 101248W/
W-100022
Date of Appointment: July 17, 2019
Walker Chandiok & Co. LLP
Chartered Accountants
Firm Registration No. 001076N/
N500013
Date of Appointment: June 25, 2021
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 business model
of the Bank through induction 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.
Additionally, Independent Directors also attend the
programmes organised by reputed institutions. The
details of the familiarisation programmes have been
hosted on the website of the Bank at (https://www.
icicibank.com/about-us/bod-1).
Dividend Distribution Policy
In accordance with Regulation 43A of the SEBI Listing
Regulations, the Dividend Distribution Policy is hosted
on the website of the Bank and can be viewed at
(https://www.icicibank.com/about-us/other-policies).
Whistle Blower Policy
The Bank has
formulated a Whistle Blower
Policy which is periodically reviewed. The policy
comprehensively provides an opportunity
for
any employee (including directors), secondees or
stakeholders 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
DIRECTORS’ REPORTAnnual Report 2022-23
intranet. Issues raised under the Whistle Blower
Policy or to senior management are investigated for
appropriate action, including an assessment of the
impact on financial statements, if any. 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 at (https://www.
icicibank.com/about-us/other-policies).
CEO/CFO Certification
In terms of the SEBI Listing Regulations, 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.
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 SEBI Listing Regulations.
During the year under review, the Bank has raised
` 71,000.0 million through issue of senior unsecured
redeemable
in the nature of
debentures, in tranches, on private placement basis.
There is no deviation in utilisation of the funds.
long term bonds
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
are a part, to ICICI Bank Limited and its subsidiaries
during the year ended March 31, 2023 are given in
the following table:
Nature of service
Audit
Certification and other audit
related services
Total
Amount in `1
52,500,000
10,960,000
63,460,000
1 Excludes taxes and out of pocket expenses.
Recommendations of mandatory committees
All the recommendations made by the committees
of the Board mandatorily required to be constituted
by the Bank under the Companies Act, 2013 and the
SEBI Listing Regulations were accepted by the Board.
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(s) 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
Director
Girish Chandra
Chaturvedi
Areas of expertise
Agriculture and rural economy,
Banking, Co-operation,
Economics, Finance, Small Scale
Industry, Human Resources,
Risk Management, Business
Management, Insurance
Hari L. Mundra Accountancy, Banking, Economics,
S. Madhavan
Neelam
Dhawan
Radhakrishnan
Nair
Finance, Law, Human Resources,
Risk Management, Business
Management, Business and
Financial Strategy, Treasury,
M&A, Business Restructuring and
Taxation
Accountancy, Banking, Economics,
Finance, Law, Information
Technology, Human Resources,
Risk Management, Business
Management, Strategy, Business
Operations, Governance, Taxation
Banking, Information Technology,
Human Resources, Business
Management, Corporate
Governance and Business Strategy
Accountancy, Agriculture and Rural
Economy, Banking, Co-operation,
Economics, Finance, Law, Small
Scale Industry, Payment and
Settlement Systems, Human
Resources, Risk Management,
Business Management, Insurance,
Securities, Treasury Management,
Foreign Exchange Management,
Information Technology, Investor
Protection
79
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
Areas of expertise
Instrument type
CARE
ICRA
CRISIL
Name of
Director
B. Sriram
Banking, Finance, Small Scale Industry,
Information Technology, Payment and
Settlement Systems, Credit and Risk,
Treasury, Insolvency & Bankruptcy
Uday Chitale
Accountancy, Banking, Finance,
Alternate Dispute resolution (ADR),
Auditing & Assurance, Securities
Vibha Paul
Rishi
Consumer Insight & Marketing,
Strategy, Accountancy, Agriculture and
rural economy, Economics, Finance,
Information Technology, Human
Resources, Risk Management, Business
Management
Sandeep
Bakhshi
Banking, Finance, Business
Management, Insurance
Rakesh Jha
Banking, Business Management, Risk
Management, Finance, Accountancy,
Economics and Information Technology
Sandeep Batra Accountancy, Banking, Finance, Law,
Information Technology, Human
Resources, Risk Management, Business
Management, Insurance, Securities,
Governance, Economics
Credit Rating as on March 31, 2023
Foreign currency denominated instruments issued by the
Bank
Certificate of Deposits
Fixed deposits
CARE
A1+
CARE
AAA
[ICRA]
A1+
[ICRA]
AAA
-
-
Moody's: Moody's Investors Services
S&P: S&P Global Ratings
CARE: CARE Ratings Limited, India
ICRA: ICRA Limited, India
CRISIL: CRISIL Limited, India
Notes:
(1) In May 2022, Japan Credit Rating Agency, Limited withdrew
ICICI Bank’s foreign currency long-term issuer rating of BBB+.
The rating withdrawal was at the Bank’s request pursuant to
the full repayment of bonds and subsequent delisting of the
Tokyo Pro-bond Programme.
(2) In June 2022, ICRA Limited standardised its rating scale based
on directions from SEBI, and accordingly revised the rating
symbol for ICICI Bank’s fixed deposits programme from MAAA
to [ICRA]AAA.
Certificate from a Company Secretary in practice
In terms of the SEBI Listing Regulations, 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 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 in practice is annexed
herewith as Annexure B.
Instrument type
Moody's
S&P
Board of Directors
Senior unsecured medium term
notes
Certificate of Deposits
Baa3
P-3
BBB-
-
Rupee denominated instruments issued by the Bank
Instrument type
CARE
ICRA
CRISIL
Tier II bonds (Basel III)
Additional Tier 1 bonds
(Basel III)
Unsecured redeemable
bonds
Long term bonds issued
by erstwhile ICICI Limited
CARE
AAA
CARE
AA+
CARE
AAA
CARE
AAA
[ICRA]
AAA
[ICRA]
AA+
[ICRA]
AAA
[ICRA]
AAA
-
CRISIL
AA+
CRISIL
AAA
CRISIL
AAA
ICICI Bank has a broad-based Board of Directors,
constituted in compliance with the Banking Regulation
Act, 1949, the Companies Act, 2013 and the SEBI Listing
Regulations 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 of the Bank at March 31, 2023 consisted of
twelve Directors, out of which eight were Independent
Directors and four were Executive Directors.
There were nine meetings of the Board during the year -
April 23, June 28, July 23, September 16, October 22 and
December 16 in 2022 and January 21, February 17-18
and March 16 in 2023.
80
DIRECTORS’ REPORTAnnual Report 2022-23 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, 2023 are set out in the following
table:
Name of Director
Board
Meetings
attended
during
the year
Attendance
at last AGM
(August 30,
2022)
Number of
directorships
of other
Indian
public
limited
companies
of other
Indian
companies
Number
of other
committee
member-
ships1
Directorships in other listed
entity and category of
directorship
Independent Directors
Girish Chandra
Chaturvedi, Chairman
(DIN: 00110996)
Hari L. Mundra
(DIN: 00287029)
S. Madhavan
(DIN: 06451889)
Neelam Dhawan
(DIN: 00871445)
Radhakrishnan Nair
(DIN: 07225354)
9/9
Present
9/9
9/9
9/9
9/9
Present
Present
Present
Present
B. Sriram
(DIN: 02993708)
Uday Chitale
(DIN: 00043268)
Vibha Paul Rishi
(DIN: 05180796)
9/9
Present
9/9
9/9
Present
Present
Executive Directors
Sandeep Bakhshi,
Managing Director &
Chief Executive Officer
(DIN: 00109206)
Anup Bagchi
(upto April 30, 2023)
(DIN: 00105962)
9/9
Present
9/9
Present
1
1
4
2
6
5
1
5
-
3
-
-
3
1
1
1
1
-
-
-
2(1)
1(1)
6(3)
3(2)
7(2)
4(1)
1(0)
6(3)
-
-
-
-
• HCL Technologies Limited (ID)
• Procter & Gamble Health Limited (ID)
• Sterlite Technologies Limited (ID)
• Transport Corporation of India
Limited (ID)
-
•
• Geojit Financial Services Limited (ID)
•
ICICI Prudential Life Insurance
Company Limited (ID)
ICICI Securities Primary Dealership
Limited (ID)
Inditrade Capital Limited (ID)
•
• Nippon Life India Asset Management
Limited (ID)
• TVS Motor Company Limited (ID)
ICICI Lombard General Insurance
•
Company Limited (ID)
• Asian Paints Limited (ID)
•
ICICI Prudential Life Insurance
Company Limited (ID)
• Piramal Pharma Limited (ID)
• Tata Chemicals Limited (ID)
-
•
ICICI Prudential Life Insurance
Company Limited (NED)
81
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements Number of
directorships
Board
Meetings
attended
during
the year
Attendance
at last AGM
(August 30,
2022)
6/6
N.A.
Name of Director
Rakesh Jha (w.e.f.
September 2, 2022)
(DIN: 00042075)
of other
Indian
public
limited
companies
4
Sandeep Batra
(DIN: 03620913)
9/9
Present
4
of other
Indian
companies
-
-
Number
of other
committee
member-
ships1
Directorships in other listed
entity and category of
directorship
1(0)
3(0)
•
•
•
•
•
ICICI Home Finance Company
Limited (NED)
ICICI Lombard General Insurance
Company Limited (NED)
ICICI Securities Limited (NED)
ICICI Lombard General Insurance
Company Limited (NED)
ICICI Prudential Life Insurance
Company Limited (NED)
Vishakha Mulye
(Resigned with effect
from May 31, 2022)
(DIN: 00203578)
1/1
N.A.
N.A.
N.A.
N.A.
N.A.
Independent Director (ID)
Non-Executive Director (NED)
1 Includes only chairmanship/membership of Audit Committee and Stakeholders’ Relationship Committee of other Indian public limited
companies. Figures in parentheses indicate committee chairpersonships.
The profiles of the Directors can be viewed on the
website of the Bank at (https://www.icicibank.com/
about-us/bod-1).
II. Audit Committee
Terms of Reference
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.
The quorum of the Board Committees was increased
from at least two members to at least three members
with effect from June 30, 2019, to transact business at
any Board Committee meeting and in case where the
Committee comprises of two members only or where two
members are participating, then any Independent Director
may attend the meeting to fulfil the requirement of three
members.
The terms of reference of the Board Committees as
mentioned above, their composition and attendance of the
respective Members at the various Committee Meetings
held during fiscal 2023 are set out hereinafter:
82
analysis,
recommendation
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 the
quarterly and annual financial statements before
submission to the Board, review of management’s
of
discussion &
appointment, 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 and utilization of loans
and/or advances from/investment by the Bank in its
subsidiaries. The Audit Committee also reviews the
functioning of the Whistle-Blower Policy, adequacy
of internal control systems and the internal audit
DIRECTORS’ REPORTAnnual Report 2022-23
function, compliance with
inspection and audit
reports and reports of statutory auditors, findings of
internal investigations, management letters/letters
on internal control weaknesses issued by statutory
auditors/internal auditors, investment in shares and
advances against shares. The Audit Committee
responsibilities also
include reviewing with the
management the statement of uses/application of
funds raised through an issue (public issue, rights
issue, preferential issue, etc.), the statement of funds
utilised for the purposes other than those stated in
the offer document/prospectus/notice and the report
submitted by the monitoring agency, monitoring
the utilization 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 of
complaints received regarding accounting, internal
accounting controls and auditing matters and
engage independent counsel as also provide for
appropriate funding for compensation to be paid to
any firm/advisors. In addition, the Audit Committee
also exercises oversight on the regulatory compliance
function of the Bank. The Committee also considers
and comments on rationale, cost-benefits and
involving merger/demerger/
impact of schemes
amalgamation etc., on the Bank and its shareholders.
The Audit Committee is also empowered to approve
the appointment of the Chief Financial Officer
(i.e., the whole-time Finance Director or any other
person heading the finance function or discharging
that function) after assessing the qualifications,
experience and background, etc. of the candidate.
Composition
There were thirteen Meetings of the Committee
during the year - April 15, April 22, April 23, May 27,
July 7, July 20, July 22, October 19, October 21 and
December 15 in 2022 and January 18, January 20
and March 24 in 2023. 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
S. Madhavan
Radhakrishnan Nair
Number of
meetings attended
13/13
13/13
13/13
III. Board Governance, Remuneration &
Nomination Committee
Terms of Reference
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 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
the Board the remuneration (including performance
bonus and perquisites) to wholetime Directors and
senior management personnel. The functions also
include approving the policy for and quantum of
bonus payable to the 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 Employees Stock Option Scheme/Employees
Stock Unit Scheme and decide on the grant of
options/units to employees and wholetime Directors
of the Bank and its subsidiary companies.
Composition
There were five Meetings of the Committee during
the year - April 23, 2022, June 24, 2022, October 21,
2022, January 20, 2023 and March 16, 2023. 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
Number of
meetings attended
Neelam Dhawan, Chairperson
Girish Chandra Chaturvedi
B. Sriram
5/5
5/5
5/5
83
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
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 evaluates
the composition of the Board and vacancies arising
in the Board from time to time. The Committee while
recommending candidature of a Director considers
the special knowledge or expertise possessed by the
candidate as required under the Banking Regulation
Act, 1949. The Committee assesses the fit and proper
credentials of the candidate and the companies/
entities with which the candidate is associated
either as a director or otherwise and as to whether
such association is permissible under RBI guidelines
and the internal norms adopted by the Bank. For the
above assessment, the Committee is guided by the
guidelines issued by RBI in this regard.
The Committee also evaluates the prospective
candidate for the position of a Director from
the perspective of the criteria for independence
prescribed under the Companies Act, 2013 as well
as the SEBI Listing Regulations. For a Non-Executive
Director to be classified as Independent he/she must
satisfy the criteria of independence as prescribed and
sign a declaration of independence. The Committee
reviews the same and determine the independence
of a Director.
The Committee based on the above assessments
makes suitable recommendations on the appointment
of Directors to the Board.
Remuneration policy
The Compensation Policy of the Bank is in line with the
RBI circulars and 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 Policy is available on
the website of the Bank at (https://www.icicibank.
com/about-us/other-policies).
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
these are 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.
In addition to sitting fee, Non-Executive Directors
(other than part-time Chairman and the Government
Nominee Director) are entitled to a fixed remuneration
of ` 2,000,000 per annum with effect from April 1,
2021 which has been approved by the Members at
the Annual General Meeting held on August 20, 2021.
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
allowance for attending to duties as Chairman of the
Bank and any other modes of remuneration as may
be permitted by RBI from time to time.
All the Non-Executive/Independent Directors would be
entitled to reimbursement of expenses for attending
Board/Committee Meetings, official visits and
participation in various forums on behalf of the Bank.
Performance evaluation of the Board,
Committees and Directors
The Bank with the approval of its Board Governance,
Remuneration & Nomination Committee and the
Board has put in place a framework for evaluation of
the Board, Directors, Chairperson and Committees.
The evaluations for the Directors, the Board, Chairman
of the Board and the Committees is carried out through
circulation of 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
84
DIRECTORS’ REPORTAnnual Report 2022-23
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 on leadership
abilities, effective management 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 discharge of terms
of reference of the Committees and assessment
of effectiveness of contribution of the Committee’s
deliberation/recommendations to the functioning/
decisions of the Board. The Bank has taken effective
steps with regards to the action points arising out
of performance evaluation process for fiscal 2022.
The performance evaluation process for fiscal 2023
was conducted by an Independent External Agency
and 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
further detailed in note no. 51 of Schedule 18 of the
financial statements.
Details of Remuneration paid to Executive
Directors
The Board Governance, Remuneration & Nomination
Committee determines and recommends to the Board
the amount of remuneration, including performance
bonus and perquisites, payable to the Managing
Director & CEO and Wholetime Directors.
The following table sets out the details of remuneration (including perquisites and retiral benefits) paid in fiscal 2023:
Details of Remuneration (`)
Sandeep
Bakhshi
Anup
Bagchi
Sandeep
Batra
Rakesh
Jha1
Vishakha
Mulye2
2022-23
2022-23
2022-23
2022-23
2022-23
Basic3
36,172,200
30,975,240
30,975,240
23,068,903
7,201,440
Performance bonus paid in fiscal 20234
21,350,000
18,650,000
18,650,000
13,908,217
15,590,000
Allowances and perquisites3,5
30,843,252
30,602,979
29,423,785
24,943,027
15,245,289
Contribution to provident fund3
4,340,664
3,717,029
3,717,029
2,768,273
864,171
Contribution to superannuation fund3
-
-
-
-
-
Contribution to gratuity fund3
3,013,144
2,580,237
2,580,237
1,921,640
599,880
Stock options6 (Number)
317,800
249,100
249,100
249,100
-
1 Rakesh Jha was appointed as Executive Director effective September 2, 2022. The above remuneration is his full year salary.
2 Vishakha Mulye's last working day with the Bank was May 31, 2022. The above remuneration pertains to her period in the Bank
during fiscal 2023.
3 RBI approval for revision in fixed remuneration (Basic, allowances & retirals) for fiscal 2022 was received by the Bank on May 10,
2022. Hence the table above carries the arrear payments made during the fiscal 2023 which pertains to fiscal 2022 increments
for Sandeep Bakhshi, Anup Bagchi, Sandeep Batra and Vishakha Mulye.
4 Bonus amounts earned for fiscal 2022 were subject to deferment policy of the Bank in-line with the regulatory stipulations. The
above table represent payouts of the non-deferred portion of the bonus amount pertaining to fiscal 2022. The balance amount
shall be equally deferred over a period of three years. The amounts also include the deferred portion of the bonus amount
approved in earlier years that was paid during fiscal 2023.
5 Allowances and perquisites exclude stock option perquisites.
6 Represents options granted during fiscal 2023.
85
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
Perquisites (evaluated as per
Income-tax rules,
wherever applicable, and otherwise at actual cost to
the Bank in other cases) such as the benefit of the
Bank’s furnished accommodation, gas, electricity,
furnishings, club fees, personal and group insurance,
use of car, running and maintenance of cars
including drivers, telephone/IT assets at residence or
reimbursement of expenses in lieu thereof, payment
of income-tax on perquisites by the Bank to the
extent permissible under the Income-tax Act, 1961
and rules framed thereunder, medical reimbursement,
leave and leave travel concession, education and
other benefits, provident fund, superannuation fund,
gratuity and other retirement benefits, in accordance
with the scheme(s) and rule(s) applicable from time
to time to retired wholetime Directors of the Bank or
the members of the staff. In line with the staff loan
policy applicable to specified grades of employees
who fulfil prescribed eligibility criteria to avail loans
for purchase of residential property, the Wholetime
Directors are also eligible for housing loans. The stock
options 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.
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 five 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
two months.
Neither the Managing Director & CEO nor the
Wholetime Directors received any remuneration or
commission from any of the subsidiary companies.
The Bank does not have any holding company.
Remuneration disclosures as required under
the RBI Guidelines
The remuneration related disclosures as required
under the RBI Guidelines on Compensation of Whole
Time Directors/Chief Executive Officers/Material Risk
Takers and Control Function staff are disclosed in note
no. 51 of Schedule 18 of the financial statements.
Details of Remuneration paid to
Non‑Executive Directors
fee of ` 100,000 to
The Bank pays sitting
Non-Executive Directors for attending each Meeting
of the Board, Audit Committee, Credit Committee and
Risk Committee.
86
The Board at its Meeting held on April 23, 2022
approved revision in sitting fee from ` 50,000 to
` 100,000 for each Meeting of Board Governance,
Remuneration & Nomination Committee, Corporate
Social Responsibility Committee, Customer Service
Committee, Fraud Monitoring Committee, Information
Technology Strategy Committee, Stakeholders
Relationship Committee and Review Committee for
Identification of Wilful Defaulters/Non Co-operative
Borrowers effective April 24, 2022.
Information on the total remuneration paid to each
Non-Executive Director during fiscal 2023 is set out
in the following table:
Amount (`)
Name of Director
Sitting Fees Remuneration
Girish Chandra
Chaturvedi
Hari L. Mundra
S. Madhavan
Neelam Dhawan
Radhakrishnan Nair
B. Sriram
Uday Chitale
Vibha Paul Rishi
2,900,000
3,500,000
4,450,000
3,750,000
2,150,000
3,100,000
4,800,000
3,100,000
2,150,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
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 Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014
and as amended from time to time.
(i)
The ratio of the remuneration of each director
to the median remuneration of the employees of
the company for the financial year;
Independent Directors1
Girish Chandra Chaturvedi,
Chairman
Hari L. Mundra
S. Madhavan
Neelam Dhawan
Radhakrishnan Nair
B. Sriram
Uday Chitale
Vibha Paul Rishi
11.20:1
11.29:1
10.06:1
7.26:1
8.93:1
11.90:1
8.93:1
7.26:1
DIRECTORS’ REPORTAnnual Report 2022-23
Executive Directors
Sandeep Bakhshi,
Managing Director & CEO
Anup Bagchi
Rakesh Jha2
Sandeep Batra
119:1
103:1
103:1
103:1
(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;
Sandeep Bakhshi,
Managing Director & CEO
Anup Bagchi,
Executive Director
Rakesh Jha,
Executive Director3
Sandeep Batra,
Executive Director
Anindya Banerjee,
Group Chief Financial Officer4
Ranganath Athreya,
Company Secretary
6%
6%
6%
6%
7%
8%
(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 11%.
in
(iv) The number of permanent employees on the
rolls of company;
The number of employees, as mentioned in
the section on ‘Management’s Discussion &
Analysis’ is 129,020. Out of this, the employees
on permanent rolls of the Bank is 126,660
including employees in overseas locations.
(v) 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 fiscal 2023 was
increase made
around 13%, while the average increase in the
remuneration of the Key Managerial Personnel
was in the range of 6%- 8%3.
(vi) Affirmation that the remuneration is as per
the remuneration policy of the company.
Yes
Notes:
1 The Independent Directors of the Bank including
Chairman receive sitting fees for attending each Meeting
of the Board/Committee as approved by the Board.
The Chairman receives remuneration of ` 3,500,000
per annum as approved by the Members and RBI. The
Independent Directors other than Chairman receive fixed
remuneration of ` 2,000,000 per annum as approved by
the Members with effect from April 1, 2021.
The ratio of remuneration as stated in point (i) above
is calculated after considering sitting fees and fixed
remuneration paid during fiscal 2023.
2 The ratios are computed on annualized remuneration
in the capacity of a Director, which was effective
September 2, 2022 for Rakesh Jha.
3 Rakesh Jha ceased to be the Group Chief Financial Officer
of the Bank effective May 1, 2022. He was appointed as
Executive Director of the Bank effective September 2,
2022 with the salary increase of 49%
4 Anindya Banerjee was appointed as Group Chief
Financial Officer of the Bank effective May 1, 2022. His
full year salary has been considered for the percentage
calculation as stated in point (ii) above.
5 Vishakha Mulye's last working day with the Bank was
May 31, 2022. The ratio of her annualised remuneration
to the median remuneration of the employees was 103:1
and the percentage increase in her remuneration was 6%.
Particulars of Senior Management Personnel
as on March 31, 2023
Ajay Gupta (Head - Retail & Business Credit, Policy &
Debt Service Management), Anindya Banerjee (Group
Chief Financial Officer), Anish Madhavan (Group
Chief Internal Auditor and Head Financial Crime
Prevention), Anubhuti Sanghai (Head - Operations &
Customer Service), Anuj Bhargava (Head - Customer
360, Branch Banking, Marketing & Alliances, Self
Employed Segment and Small & Medium Enterprises),
Atul Arora (Business Head - North & East 1), Balaji
V.V. (Chief Technology Officer), Bijith Bhaskar (Head -
Digital Channels & Partnership), G Srinivas (Chief Risk
Officer), Hitesh Sachdev (Head - Start Up Engagement
and Investments), Nilanjan Sinha (General Counsel),
Partha Dey (Head – Services Sector; Retail Structure
Institutions Group), Pranav
Finance & Financial
Mishra (Head - Global Clients Group, MNC, PSU
87
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
and Advisory), Prasanna Balachander (Group Head
- Global Markets - Sales, Trading and Research),
Pravendra Shah (Chief of Internal Vigilance), Rajesh
Iyer (Head - Wealth, Private Banking & Loans Against
Securities), Rajesh Nair (Head - Mid Corporate
Group), Rajesh Rai (Business Head - West & South),
Ranganath Athreya (Company Secretary), Sanjay
Singhvi (Head - Secured Assets, Personal & Education
Loan), Saurabh Singh (Head - TASC & Government
Business Group), Sidharatha Mishra
(Business
Head - East 2, APT), Sriram Hariharan (Head-
International Banking Group, Global Remittances and
NRI Services), Subir Saha (Group Chief Compliance
Officer), Sudipta Roy (Head - Credit Cards, Payment
Solutions & Merchant Ecosystem), Sujit Ganguli
(Head - Corporate Brand and Communications),
Sumit Sanghai (Head - Large Clients Group, Capital
Markets, Transaction Banking, Construction Realty
& Funding, Asset Evaluation & Monetization, Supply
Chain Finance, Custody & Financial Sponsor), T K
Srirang (Group Chief Human Resources Officer and
Head Infrastructure Management), Vandana Jogani
(Head - Process Optimisation & Key Initiatives), Vikas
Agarwal (Head - Financial Sponsors & Syndications),
Vishal Batra (Business Head - Defence & Armed
Force Eco System), Vyom Upadhyay (Head - Data
Science & Analytics).
During the year, Anindya Banerjee and Pravendra
Shah were included in the list of senior management
based on the eligibility criteria approved by the Board.
Avijit Saha, Drupad Shah, Hitesh Sethia, Kadayam
Rajaram, Pankaj Gadgil, Pramod Rao, Prashant
Verma, Raghav Singhal, Sunir Ramchandani, Vikash
Sharma and Viral Rupani were excluded from the
list of senior management either owing to their exit
from the Bank or changes in organization structure.
Rakesh Jha was a senior management personnel for
a period till September 1, 2022.
IV. Corporate Social Responsibility Committee
Terms of Reference
ICICI Group and the
The functions of the Committee include review
of corporate social responsibility (CSR) initiatives
undertaken by the
ICICI
Foundation for Inclusive Growth, formulation and
recommendation to the Board of a CSR Policy
indicating the activities to be undertaken by the Bank
and recommendation of the amount of expenditure
to be incurred on such activities, identifying the focus,
88
from among the themes specified in Schedule VII of the
Companies Act, 2013, for initiatives to be undertaken
by the Bank, reviewing and recommending the
annual CSR plan to the Board with details of
projects and schedule of implementation, 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, reviewing the
submissions to be made to the Board with respect
to implementation of the annual CSR action plan
including the disbursement of funds for the purposes
and manner as approved, implementation of on-
going projects as per approved timelines and year-
wise allocation of funds, any modifications to be
suggested to on-going projects, earmarking unspent
CSR amount, if any, in subsequent periods as
prescribed in the Companies Act, 2013 and suggest
deployment of any amount spent in excess of the
requirement for set-off in subsequent years, reviewing
impact assessment of projects, and reviewing and
implementing, if required, any other matter related to
CSR initiatives as recommended/suggested by RBI or
any other body.
Composition
There were four Meetings of the Committee during the
year - April 22, 2022, July 21, 2022, October 19, 2022
and January 18, 2023. 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
Girish Chandra Chaturvedi,
Chairman
Radhakrishnan Nair
Uday Chitale
Vibha Paul Rishi
Anup Bagchi
(upto April 30, 2023)
Number of
meetings attended
4/4
4/4
4/4
4/4
4/4
The Board at
its Meeting on April 22, 2023
reconstituted the Committee to induct Rakesh Jha,
Executive Director as a Member of the Committee
with effect from May 1, 2023 in place of Anup Bagchi.
Details about the policy developed and
implemented by the Bank on CSR initiatives
taken during the year
ICICI Bank has a long-standing commitment towards
socio-economic development. The Bank’s CSR
DIRECTORS’ REPORTAnnual Report 2022-23
activities are in the areas of healthcare, environment,
societal development, sustainable livelihoods, rural
development and related activities including financial
inclusion and financial literacy, social awareness
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/about-us/
corporate-social-responsibility).
The Annual Report on the Bank’s CSR activities is
annexed herewith as Annexure C.
V. Credit Committee
Terms of Reference
The functions of the Committee inter alia includes
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 Meetings of the Committee
during the year - April 6, April 19, April 29, May 9,
May 18, June 10, June 21, June 24 (held jointly with
Risk Committee), June 29, July 8, July 19, August 11,
August 29, September 20, September 29, October 11,
October 20, November 1, November 11, November 25,
December 7, December 19 and December 30 in 2022
and January 13, January 25, February 10, February 28,
March 13, March 20 and March 29 in 2023. 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, Chairman
Hari L. Mundra1
B. Sriram
Vishakha Mulye
(upto April 23, 2022)
Anup Bagchi
(w.e.f. April 24, 2022 upto
April 30, 2023)
Number of
meetings attended
28/30
27/30
30/30
2/2
27/28
1 chaired the meetings held on January 25, 2023 and
February 28, 2023 in the absence of Sandeep Bakhshi
The Board at
its Meeting on April 22, 2023
reconstituted the Committee to induct Rakesh Jha,
Executive Director as a Member of the Committee
with effect from May 1, 2023 in place of Anup Bagchi.
VI. Customer Service Committee
Terms of Reference
The functions of this Committee include review
of customer service
initiatives, overseeing the
functioning of the Standing Committee on Customer
Service (Customer Service Council) and evolving
innovative measures for enhancing the quality of
customer service and improvement in the overall
satisfaction level of customers.
Composition
There were five Meetings of the Committee during
the year - May 12, 2022, June 28, 2022, August 26,
2022, November 17, 2022 and February 15, 2023.
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
Vibha Paul Rishi, Chairperson
Hari L. Mundra
Sandeep Bakhshi
Anup Bagchi
(upto October 22, 2022)
Rakesh Jha
(w.e.f. October 23, 2022)
Number of
meetings attended
5/5
5/5
5/5
3/3
2/2
VII. Fraud Monitoring Committee
Terms of Reference
The Committee monitors and reviews all the frauds
involving an amount of ` 10.0 million and above with
the objective of identifying the systemic 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
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DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
the Committee is also to review the efficacy of the
remedial action taken to prevent recurrence of frauds,
such as strengthening of internal controls.
and January 12, 2023. The details of the composition
of the Committee and attendance at its Meetings
held during the year are set out in the following table:
Composition
There were four Meetings of the Committee during the
year - April 13, 2022, July 15, 2022, October 10, 2022
and January 11, 2023. 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
S. Madhavan
Neelam Dhawan
Sandeep Bakhshi
Anup Bagchi
(upto October 22, 2022)
Rakesh Jha
(w.e.f. October 23, 2022)
Number of
meetings attended
4/4
4/4
4/4
4/4
3/3
1/1
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 IT strategy 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, oversee the activities
of Digital Council, review technology from a future
readiness perspective, overseeing key projects
progress & critical IT systems performance, review
of special IT initiatives, review cyber risk, consider
the RBI inspection report/directives received from
time to time by the Bank in the areas of information
technology and cyber security and to review the
compliance of various actionables arising out of such
reports/directives as may be deemed necessary from
time to time.
Composition
There were five Meetings of the Committee during
the year - April 14, 2022, July 14, 2022, July 22, 2022
(held jointly with Risk Committee), October 13, 2022
90
Name of Member
B. Sriram, Chairman
Neelam Dhawan
Anup Bagchi
(upto April 30, 2023)
Sandeep Batra
Number of
meetings attended
5/5
5/5
5/5
5/5
The Board at
its Meeting on April 22, 2023
reconstituted the Committee to induct Rakesh Jha,
Executive Director as a Member of the Committee
with effect from May 1, 2023 in place of Anup Bagchi.
IX. Risk Committee
Terms of Reference
framework,
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 and approve Broker Empanelment Policy and
any amendments thereto. The functions of the
Committee also include setting limits on any industry
or country, review of the Enterprise Risk Management
(ERM) framework, Risk Appetite for the Bank, stress
testing
Internal Capital Adequacy
Assessment Process (ICAAP) and framework for
capital allocation; review of the Basel framework,
risk dashboard covering various risks, outsourcing
activities and the activities of the Asset Liability
Management Committee. The Committee has
oversight on risks of subsidiaries covered under the
Group Risk Management Framework. The Committee
also carries out Cyber Security risk assessment. The
appointment, removal and terms of remuneration
of the Chief Risk Officer is subject to review by the
Committee. The Committee keeps the Board of
Directors informed about the nature and content of
its discussions, recommendations and actions to be
taken. The Committee coordinates its activities with
other committees, in instances where there is any
overlap with activities of such committees, as per the
framework laid down by the Board of Directors.
Composition
There were twelve Meetings of the Committee during
the year April 22, May 10, June 10, June 24, June 24
DIRECTORS’ REPORTAnnual Report 2022-23
(held jointly with Credit Committee), July 22, July 22
(held jointly with Information Technology Strategy
Committee), October 21, November 24 in 2022 and
January 20, February 14 and March 24 in 2023.
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
S. Madhavan, Chairman
Girish Chandra Chaturvedi
Vibha Paul Rishi
(w.e.f. October 23, 2022)
Sandeep Batra
Number of
meetings attended
12/12
12/12
4/4
12/12
X. Stakeholders Relationship Committee
Terms of Reference
The functions of the Committee inter alia includes
approval and rejection of 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 22, 2022, July 22, 2022, October 21, 2022
and January 21, 2023. 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
Hari L. Mundra, Chairman
Uday Chitale
Anup Bagchi
(upto October 22, 2022)
Sandeep Batra
(w.e.f. October 23, 2022)
Number of
meetings attended
4/4
4/4
3/3
1/1
The Company Secretary of the Bank acts as
the Compliance Officer in accordance with the
requirements of the SEBI Listing Regulations. 340
investor complaints received in fiscal 2023 were
processed. At March 31, 2023, 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 the Committee for 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.
Composition
The Managing Director & CEO is the Chairman of
this Committee and any two independent Directors
comprise the remaining members. Two Meetings
of the Committee were held during the year. The
Meetings held on July 12, 2022 and January 19, 2023
were attended by Sandeep Bakhshi, Uday Chitale
and Radhakrishnan Nair.
XII. Separate Meeting of Independent Directors
During the year, the Independent Directors met
on April 23, 2022 inter alia to review the matters
statutorily prescribed under the Companies Act, 2013
and the SEBI Listing Regulations.
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
Defaulters/Non Co-operative Borrowers, Committee
of Senior Management (comprising certain wholetime
Directors and Executives) and Committee of
Executives, Compliance Committee, Process Approval
Committee, Outsourcing Committee, Operational
Risk Management Committee, Vigilance Committee,
Product Governance Forum and other committees
(all comprising Executives). These committees are
responsible for specific operational areas like asset
liability management, approval/renewal of credit
proposals, approval of products and processes and
management of operational risk, under authorisation/
supervision of the Board and its committees.
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DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
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-Eighth Annual General
Meeting
Twenty-Seventh Annual
General Meeting
Twenty-Sixth Annual General
Meeting
Tuesday,
August 30, 2022
Friday,
August 20, 2021
Friday,
August 14, 2020
3:00 p.m.
3:00 p.m.
3:30 p.m.
Meeting held through Video Conferencing/
Other Audio Visual Means
Meeting held through Video Conferencing/
Other Audio Visual Means
Meeting held through Video Conferencing/
Other Audio Visual Means
The details of the Special Resolutions passed at the Annual General Meetings held in the year 2022 and 2020 are
given below:
General Body
Meeting
Twenty-Eighth
Annual General
Meeting
Day, Date Resolutions
Tuesday,
August 30,
2022
• Re-appointment of Neelam Dhawan (DIN: 00871445) as an Independent
Director of the Bank
• Re-appointment of Uday Chitale (DIN: 00043268) as an Independent Director
of the Bank
• Re-appointment of Radhakrishnan Nair (DIN: 07225354) as an Independent
Director of the Bank
• Approval and adoption of ‘ICICI Bank Employees Stock Unit Scheme - 2022’
• Approval of grant of Units to the eligible employees of select unlisted wholly
owned subsidiaries under ‘ICICI Bank Employees Stock Unit Scheme - 2022’
• Re-appointment of Girish Chandra Chaturvedi (DIN: 00110996) as an
Independent Director of the Bank
• Shifting the Registered Office of the Bank from the State of Gujarat to the
State of Maharashtra and consequent amendment to the Memorandum of
Association of the Bank
Twenty-Sixth
Annual General
Meeting
Friday,
August 14,
2020
No Special Resolution was passed at the Twenty-Seventh Annual General Meeting held on Friday, August 20, 2021.
Postal Ballot
No resolution was passed through postal ballot
during the financial year ended March 31, 2023.
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.
Details of non-compliance by the Bank, penalties or
strictures imposed on the Bank by stock exchanges
or SEBI or any statutory authority, on any matter
relating to capital markets, during the last three years
are detailed as under:
(i)
BSE and NSE had levied a fine of ` 11,800 each
for delay in submitting the notice of record date in
one instance under Regulation 60(2) of the SEBI
Listing Regulations. The Bank paid fines to both
the stock exchanges and filed for waiver of the
fine. BSE and NSE vide its communication dated
March 31, 2023 and May 15, 2023 respectively,
waived the fine.
(ii)
SEBI
issued an administrative warning on
March 2, 2023 for collection of registration
fees in advance before submission of Common
Application Form and collection of balance fees
92
DIRECTORS’ REPORTAnnual Report 2022-23
in case of re-categorization of Foreign Portfolio
Investors category and non-updation of
operational manual with specific section to deal
with specific entities. The Bank has submitted its
action taken report to SEBI. Further, the Board
of Directors noted the steps taken by the Bank
and advised to ensure timely compliance with
the instruction issued by SEBI. The same was
informed to SEBI.
SEBI
issued an administrative warning on
October 14, 2022 for failure to transfer amounts
pertaining to written off securities to the Investor
Protection and Education Fund within prescribed
timelines and delay in updation of Operational
Manual after issuance of Regulations/Guidelines.
The Bank placed the same alongwith corrective
measures before the Board and also submitted
the responses to SEBI.
(iii)
(iv) SEBI
issued an Adjudication Order on
September 12, 2019, imposing a penalty of
` 500,000 each (totalling to ` 1.0 million) under
Section 15HB of the Securities and Exchange
Board of India Act, 1992 and Section 23E of the
Securities Contracts (Regulation) Act, 1956 on
the Bank for delayed disclosure of an agreement
made on May 18, 2010 relating to merger of
erstwhile Bank of Rajasthan with the Bank. The
Bank had filed an appeal against SEBI’s Order
with the Securities Appellate Tribunal (SAT)
and SAT vide its order converted the monetary
penalty imposed on the Bank to warning.
to SEBI. The Bank filed the applications seeking
for disposal of the civil appeal matters pending
before the Supreme Court which were heard
on January 4, 2022 and Supreme Court vide its
order dated January 4, 2022 disposed off all the
appeals in view of the settlement between the
parties. SEBI vide their email dated May 12, 2022
has communicated that in view of the Order of
the Hon’ble Supreme Court, the matter stands
settled in respect of the appeals as mentioned in
the said order.
(v) SEBI
issued an administrative warning on
December 3, 2021 with regard to erroneous
submission of monthly Assets Under Custody
data to National Securities Depository Limited.
The communication received from SEBI and
additional corrective action taken by Bank was
placed before the Board of Directors of the Bank.
The Board took note of the controls implemented
and advised to follow the same diligently and
the same was informed to SEBI.
(vi)
SEBI vide letter dated November 11, 2020 had
issued an administrative warning and advisory
letter for two deficiencies/discrepancies
i.e.
non-disclosure of the track record and non-
submission of demarcation of responsibilities
the
statement
inspection for merchant banking activity. The
Bank placed SEBI’s letter alongwith corrective
measures before the Board and informed the
same to SEBI.
to SEBI, observed during
Subsequently, SEBI had filed an appeal with
the Supreme Court of India (Supreme Court)
against the SAT order pertaining to the Bank.
Separately, the Bank had also filed an appeal
with the Supreme Court against the SAT order.
The matter was heard by the Supreme Court
wherein the Supreme Court directed an interim
stay on the operation of the SAT orders. The
Bank subsequently filed counter affidavit before
the Supreme Court. To bring closure to the
matter, the Bank filed the settlement application
on January 6, 2021, under the Securities
and Exchange Board of
(Settlement
Proceedings) Regulations, 2018 pursuant to
which the Bank has paid the settlement amount
India
3.
4.
5.
6.
In terms of the Whistle Blower Policy of the Bank, no
employee of the Bank has been denied access to the
Audit Committee.
Being a banking company, the disclosures relating
to deposits as required under Rule 8(5)(v) and (vi)
of the Companies (Accounts) Rules, 2014, read with
Sections 73 and 74 of the Companies Act, 2013, are
not applicable to the Bank.
There is no application or proceeding pending against
the Bank under the Insolvency and Bankruptcy Code,
2016 during the year under review.
There was no instance of one-time settlement by
the Bank with any other bank or financial institution
during the year under review.
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DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
XVI. Means of Communication
Financial Year: April 1, 2022 to March 31, 2023
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
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.
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
Exchange Commission
(SEC) guidelines, all
information which could have a material bearing on
ICICI Bank’s share price is released through leading
domestic and global wire agencies. The information
is also disseminated to the NSE, BSE, New York Stock
Exchange (NYSE), SEC, Singapore Stock Exchange,
Japan Securities Dealers Association and SIX Swiss
Exchange Ltd. from time to time.
The financial and other information and the various
compliances as required/prescribed under the SEBI
Listing Regulations are filed electronically with
NSE/BSE and are also available on their respective
websites in addition to the Bank’s website.
ICICI Bank’s quarterly financial results are published
in Financial Express and Vadodara Samachar. The
financial results, official news releases, earnings call
transcripts, audio recording and presentations are
also available on the Bank’s website.
The Management’s Discussion & Analysis forms part
of the Annual Report.
General Shareholder Information
Annual General Meeting
Day, Date
Time
Twenty-Ninth Annual
General Meeting through
Video Conferencing/Other
Audio Visual Means
Wednesday,
August 30,
2023
2:00
p.m.
Record Date: August 9, 2023
Dividend Payment Date: Will be paid/despatched on
or after September 1, 2023
Listing of equity shares/ADSs/Bonds on Stock
Exchanges
Stock Exchange
BSE Limited (Equity)
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai 400 001
National Stock Exchange of India
Limited (Equity)
Exchange Plaza, Bandra-Kurla
Complex, Mumbai 400 051
Code for
ICICI Bank
532174
&
6321741
ICICIBANK
New York Stock Exchange (ADSs)2
11, Wall Street, New York, NY 10005
United States of America
IBN
1 FII segment of BSE
2 Each ADS of ICICI Bank represents two underlying equity
shares
The bonds issued in domestic market comprised
privately placed bonds as well 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 India International Exchange
(IFSC) Limited (India INX), 1st Floor, Unit No. 101, The
Signature, Building No. 13B, Road 1C, Zone 1, GIFT
SEZ, GIFT City, Gandhinagar, Gujarat 382355 or SIX
Swiss Exchange Ltd, Pfingstweidstrasse 110, P.O.
Box, CH-8021 Zurich, Switzerland.
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DIRECTORS’ REPORTAnnual Report 2022-23
Market Price Information
The reported high and low closing prices and volume of equity shares of ICICI Bank traded during fiscal 2023 on BSE
and NSE are set out in the following table:
Month
April-22
May-22
June-22
July-22
BSE
NSE
High (`)
Low (`)
Volume
High (`)
Low (`)
Volume
Total Volume on
BSE and NSE
777.95
724.10
11,526,037
777.90
723.10
331,468,931
342,994,968
756.60
675.00
12,033,175
756.70
675.00
270,162,892
282,196,067
757.20
670.35
6,803,973
757.00
669.95
237,332,561
244,136,534
822.75
694.30
13,019,113
823.40
694.10
216,490,069
229,509,182
August-22
890.50
808.50
15,190,178
890.75
808.35
247,196,969
262,387,147
September-22
936.35
837.25
19,525,026
936.65
837.50
257,557,559
277,082,585
October-22
942.70
846.05
12,218,609
943.25
845.70
194,695,277
206,913,886
November-22
958.00
891.55
15,895,929
958.20
891.25
244,001,307
259,897,236
December-22
957.00
875.30
7,136,252
957.00
875.25
232,247,479
239,383,731
January-23
907.85
796.10
8,199,721
907.90
796.00
321,387,922
329,587,643
February-23
877.80
823.55
11,539,501
877.80
823.15
255,975,001
267,514,502
March-23
880.90
810.50
4,143,418
881.00
810.30
353,368,888
357,512,306
Fiscal 2023
958.00
670.35 137,230,932
958.20
669.95 3,161,884,855
3,299,115,787
The reported high and low closing prices and volume of ADSs of ICICI Bank traded during fiscal 2023 on the NYSE
are given below:
Month
April-22
May-22
June-22
July-22
August-22
September-22
October-22
November-22
December-22
January-23
February-23
March-23
Fiscal 2023
High (USD)
Low (USD) Number of ADS traded
20.05
19.45
19.55
20.83
22.64
23.49
23.02
23.75
23.49
22.14
21.04
21.70
23.75
18.81
17.43
17.07
17.61
20.63
20.51
20.32
21.88
21.34
19.92
20.03
19.34
17.07
217,018,200
164,239,700
154,011,900
150,069,200
160,607,500
172,261,100
175,112,800
192,474,900
149,935,300
182,030,700
129,675,000
131,936,800
1,979,373,100
95
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
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, 2022 to March 31, 2023 is given in the following chart:
S&P BSE Sensex
S&P BSE Bankex
NYSE Financial Index
ICICI Bank
140
120
100
80
60
2
2
/
r
p
A
2
2
/
y
a
M
/
2
2
n
u
J
2
2
/
l
u
J
/
2
2
g
u
A
/
2
2
p
e
S
2
2
/
t
c
O
2
2
/
v
o
N
2
2
/
c
e
D
/
3
2
n
a
J
/
3
2
b
e
F
3
2
/
r
a
M
Share Transfer System, Dematerilisation of
Shares and Liquidity
transferred/traded only
listed
As per the SEBI mandate, securities of
companies can be
in
dematerialised form. In view of this and to eliminate
all risks associated with physical shares and for
ease of portfolio management, Members holding
shares in physical form are requested to consider
converting their holdings to dematerialised form. The
Bank’s equity shares are actively traded on the stock
exchanges.
As required under Regulation 40(9) of the SEBI
Listing Regulations, a certificate is obtained from a
practicing Company Secretary and filed with BSE
and NSE, where the equity shares of ICICI Bank are
listed.
In terms of Regulation 76 of the Securities and
Exchange Board of
(Depositories and
Participants) Regulations, 2018 and SEBI Circular No.
D&CC/FITTC/CIR-16/2002 dated December 31, 2002,
as amended vide Circular No. CIR/MRD/DP/30/2010
India
dated September 6, 2010 an audit is conducted
on a quarterly basis, 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. Audit Reports 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.
Registrar and Transfer Agents
The Bank has appointed KFin Technologies Limited
as its Registrar & Transfer Agent (R & T Agent) for
equity shares in place of 3i Infotech Limited with
effect from April 1, 2022. Investor services related
queries/requests/grievances for equity shares may be
directed to C Shobha Anand at the following address:
KFin Technologies Limited
Unit: ICICI Bank Limited
Selenium Building, Tower-B
Plot No. 31 & 32, Financial District
Nanakramguda, Serlingampally
96
DIRECTORS’ REPORTAnnual Report 2022-23
Hyderabad 500 032, Rangareddy
Telangana, India
Tel. No.: +91-040-6716 2222
Fax No.: +91-040-2342 0814
Toll free No.: 18003094001
WhatsApp No.: +91 910 009 4099
E-mail: einward.ris@kfintech.com
Website: https://ris.kfintech.com
Investor Support Centre: https://ris.kfintech.com/
clientservices/isc
Details of other Service Centers of KFin Technologies
Limited, R & T Agent for equity shareholders can
be viewed at https://www.icicibank.com/about-us/
investor-contact
3i Infotech Limited is the R & T Agent for the bonds/
debentures issued by the Bank. Investor services
related queries/requests/grievances
for bonds/
debentures may be directed to Vijay Singh Chauhan
at the following address:
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 8034/35
Fax No.: +91-22-6792 8099
Toll free No.: 18601207777
E-mail: investor@icicibank.com
Website: https://www.3i-infotech.com/investors/
Queries relating to the operational and
financial performance of ICICI Bank may be
addressed to:
Anindya Banerjee/Abhinek Bhargava
ICICI Bank Limited
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
Tel. No.: +91-22-2653 6173
E-mail: ir@icicibank.com
Debenture Trustees
Pursuant to Regulation 53 of the SEBI Listing Regulations, the names and contact details of the debenture trustees
for the public issue bonds and privately placed bonds of the Bank are given below:
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
Universal Insurance Building
Ground Floor, Sir P.M. Road
Fort, Mumbai 400 001
Tel. No.: +91-22-4080 7057
itsl@idbitrustee.com
The details are available on the website of the Bank at (https://www.icicibank.com/Personal-Banking/investments/
icici-bank-bonds/index.page).
Bank’s Customer Service
The Bank enables customers to avail of services through multiple channels.
•
•
•
•
•
Customer care: Connect with us on 1800 1080. To know more, visit https://www.icicibank.com/customer-
care?ITM=nli_cms_CONTACT_US_customer_care_menu_navigation
Branch: Visit our branch for resolution.
Website: Register a request on the Bank’s website. For details, https://www.icicibank.com/personal-banking/
insta-banking/internet-banking/list-of-service-requests
Email: Write to us at customer.care@icicibank.com
iMobile: Seek resolution using the IPAL chat bot.
97
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
Information on Shareholding
Shareholding pattern of ICICI Bank at March 31, 2023
Shareholder Category
No. of Shares
% holding
Deutsche Bank Trust Company Americas (Depositary for ADS holders)
FIIs/FPIs
Insurance Companies
Bodies Corporate (includes Government Companies and Clearing Members)
Banks & Financial Institutions
Mutual Funds
Individuals, HUF, Trusts
NBFCs Registered with RBI
Provident Funds/Pension Funds
Alternate Investment Fund
IEPF
1,335,200,207
2,493,590,546
708,965,402
86,091,473
6,770,790
1,657,737,819
461,669,391
14,360,029
139,905,614
34,313,941
8,196,312
Others (includes NRIs, Foreign Companies, Foreign Banks, Foreign Nationals etc.)
36,014,207
19.12
35.71
10.15
1.23
0.10
23.74
6.61
0.21
2.00
0.49
0.12
0.52
Total
6,982,815,731
100.00
Shareholders of ICICI Bank with more than one percent holding (PAN based) at March 31, 2023
Name of the Shareholder
Deutsche Bank Trust Company Americas*
Life Insurance Corporation of India
SBI Mutual Fund
ICICI Prudential Mutual Fund
Government of Singapore
HDFC Mutual Fund
NPS Trust
UTI Mutual Fund
Aditya Birla Sun Life Mutual Fund
Kotak Mahindra Mutual Fund
Dodge and Cox International Stock Fund
Nippon Life India Mutual Fund
SBI Life Insurance Company Limited
Europacific Growth Fund
Mirae Asset Mutual Fund
Axis Mutual Fund
No. of Shares
% holding
1,335,200,207
19.12
436,045,481
401,128,311
201,266,391
193,927,441
168,757,184
139,905,614
133,817,521
98,216,059
94,807,985
86,823,676
83,529,717
81,225,555
78,969,116
77,802,147
73,313,274
6.24
5.74
2.88
2.78
2.42
2.00
1.92
1.41
1.36
1.24
1.20
1.16
1.13
1.11
1.05
* Deutsche Bank Trust Company Americas holds equity shares of ICICI Bank as depositary for ADS holders.
98
DIRECTORS’ REPORTAnnual Report 2022-23
%
3.79
0.63
0.55
0.30
0.20
0.15
0.53
93.85
100.00
%
99.81
0.19
Distribution of shareholding of ICICI Bank at March 31, 2023
Range - Shares
1 - 5,000
5,001 - 10,000
10,001 - 20,000
20,001 - 30,000
30,001 - 40,000
40,001 - 50,000
50,001 - 100,000
100,001 & Above
Total
No. of Folios
%
No. of Shares
1,907,110
98.72
265,027,798
12,632
5,562
1,708
817
453
1,034
2,630
0.65
0.29
0.09
0.04
0.02
0.05
0.14
43,793,951
38,650,155
20,791,917
14,291,193
10,217,330
36,935,404
6,553,107,983
1,931,946
100.00
6,982,815,731
Details of shares held in Demat and Physical form at March 31, 2023
Mode of holding
Demat
Physical
Total
Details of shares/convertible instruments held by
Non‑Executive Directors
As on March 31, 2023, S. Madhavan and Vibha Paul
Rishi (as joint holder) held 4,000 and 330 equity
shares of ` 2.00 each respectively.
Disclosure with respect to shares lying in suspense
account
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 fiscal 2023, no shares
were transferred from the suspense account. The Bank
had 93,438 equity shares held by 467 shareholders
lying in suspense account at the beginning and at the
end of the fiscal 2023.
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)
No. of Shares
6,969,342,942
13,472,789
6,982,815,731
100.00
amount of ` 59.7 million remaining unclaimed for a
period of seven years from the date of its transfer to
the Unpaid Dividend Accounts of the Bank has been
transferred to the 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 2023, 689,814
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.
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 at (www.iepf.gov.in).
Members who have not yet encashed their dividend
warrant(s) for the financial year ended March 31, 2017
and/or subsequent years are requested to submit
their claims to KFin Technologies Limited without any
delay.
Pursuant to the provisions of Sections 124 and 125 of
the Companies Act, 2013, during fiscal 2023, dividend
The details of Nodal Officer and Deputy NodaI
Officers appointed under the provisions of IEPF
99
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
are available on the website of the Bank at:
( h t t p s : / /n l i . i c i c i b a n k . c o m / N e w R e t a i l We b /
showUnclaimedForm.htm).
Outstanding GDRs/ADSs/Warrants or any
Convertible instruments, conversion date and
likely impact on equity
ICICI Bank has 667.6 million ADS (equivalent to
1,335.2 million equity shares) outstanding, which
constituted 19.12% of ICICI Bank’s total equity capital
at March 31, 2023. There are no other convertible
instruments outstanding as on March 31, 2023.
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
floating rate linked assets. Wholesale liability raising
for foreign currencies takes place in USD or other
currencies through 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 USD, the
interest rate risk is generally hedged through interest
rate swaps wherein the Bank effectively moves the
interest payments 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
through 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. 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 to
the SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/
2018/0000000141 dated November 15, 2018 is not
required to be given.
Plant Locations – Not applicable
Address for Correspondence
Prachiti Lalingkar
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
The Bank is in compliance with requirements specified
in Regulations 17 to 27 and clauses (b) to (i) and (t)
of sub-regulation (2) of Regulation 46 of the SEBI
Listing Regulations.
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
The required details as per the RBI Circular No.
CEPD.CO.PRD.Cir.No.01/13.01.013/2020-21 dated
January 27, 2021 are disclosed in note no. 53 of
Schedule 18 of the financial statements.
COMPLIANCE CERTIFICATE OF THE AUDITORS
ICICI Bank has annexed to this Report, a certificate
obtained from the statutory auditors regarding compliance
of conditions of Corporate Governance as stipulated in the
SEBI Listing Regulations.
SHARE BASED EMPLOYEE BENEFITS SCHEME(S)
(a) ICICI Bank Employees Stock Option Scheme ‑
2000
ICICI Bank has an Employees Stock Option Scheme
- 2000 (Scheme 2000) 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 Scheme 2000 aims at achieving the
twin objectives of aligning employee interest to that
of the shareholders and retention. Through employee
100
DIRECTORS’ REPORTAnnual Report 2022-23
stock option grants, the Bank seeks to foster a
culture of long-term sustainable value creation. The
Scheme 2000 is in compliance with the Securities
and Exchange Board of India (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021
(the SEBI SBEB & SE Regulations). The options are
granted by the Board Governance, Remuneration &
Nomination Committee and noted/approved by the
Board as the case maybe.
The Scheme was initially approved by the Members
at their meeting held on February 21, 2000 and
amended from time to time.
The Bank has upto March 31, 2023 granted 612.29
million stock options from time to time aggregating
to 8.77% of the issued equity capital of the Bank
at March 31, 2023. As per the Scheme 2000, 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 698.28
million shares of face value ` 2.00 each at March 31,
2023).
Particulars of options granted by ICICI Bank as on
March 31, 2023 are given below:
Number of options outstanding1 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 outstanding1 at
the end of the year
Number of options exercisable at
the end of the year
237,197,999
25,793,500
3,921,340
29,953,785
34,044,356
34,044,356
9,420,690,715
225,025,803
172,938,533
1 options granted less exercised less lapsed
Till March 31, 2021, the Bank recognised cost of stock
options granted under Scheme 2000, using intrinsic
value method. Pursuant to RBI clarification dated
August 30, 2021, the cost of stock options granted
after March 31, 2021 is recognised based on fair
value method. The cost of stock options granted up to
March 31, 2021 continues to be recognised on intrinsic
value method. The Bank uses Black-Scholes model to
fair value the options on the grant date and the inputs
used in the valuation model include assumptions such
as the expected life of the share option, volatility, risk
free rate and dividend yield. The diluted earnings per
share (EPS) pursuant to issue of shares on exercise
of options calculated in accordance with Accounting
Standard 20 (AS-20) for the year ended March 31,
2023 was ` 44.89 compared to basic EPS of ` 45.79.
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 31, 2022
Year ended
March 31, 2023
5.34% to 6.53% 5.99% to 7.37%
3.55 to 5.55
years
35.38% to
39.41%
3.23 to 5.23
years
34.79% to
38.98%
0.18% to 0.30% 0.27% to 0.72%
The weighted average fair value, based on Black-
Scholes model, of options granted under Scheme
2000 during the year ended March 31, 2023 was
` 291.15 (year ended March 31, 2022: ` 227.75)
and the weighted average exercise price of options
granted during the year ended March 31, 2023 was
` 747.92 (year ended March 31, 2022: ` 570.43).
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 behavior
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
101
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
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 SEBI SBEB & SE Regulations will be hosted on
the website of the Bank at (https://www.icicibank.com/
about-us/other-policies).
(b) ICICI Bank Employees Stock Unit Scheme -
2022
The Board of Directors of ICICI Bank at its Meeting
held on June 28, 2022, approved the adoption of
Employees Stock Unit Scheme - 2022 (Scheme 2022).
The Scheme 2022 was approved by the Members at
the Annual General Meeting held on August 30, 2022.
The key objectives of the Scheme 2022 are to deepen
the co-ownership amongst the (i) mid level and front-
line managers, and (ii) employees of Bank’s select
unlisted wholly owned subsidiaries with the following
key considerations:
i.
to enable employees’ participation
in the
business as an active stakeholder to usher in
an ‘Owner-Manager’ culture and to act as a
retention mechanism;
ii.
to enhance motivation of employees; and
iii.
to enable employees to participate in the long
term growth and financial success of the Bank.
The Scheme 2022 is in compliance with the SEBI
SBEB & SE Regulations.
Maximum of 100,000,000 Units, shall be granted in
one or more tranches over a period of 7 years from
the date of approval of the Scheme 2022 by the
shareholders, which shall entitle the Unit holder one
fully paid-up equity share of face value of ` 2.00 of
the Bank (as adjusted for any changes in capital
structure of the Bank) against each Unit exercised
and accordingly, up to 100,000,000 equity shares
of face value of ` 2.00 each shall be allotted to all
eligible employees taken together under the Scheme
2022.
Units granted under the Scheme 2022 shall vest not
later than the maximum vesting period of 4 years.
Exercise price shall be the face value of equity shares
of the Bank i.e. ` 2.00 for each unit (as adjusted for
any changes in capital structure of the Bank).
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 Environmental, Social and Governance Report of
fiscal 2023 which will be available on the website of the
Bank at (https://www.icicibank.com/about-us/annual) and
in the Natural Capital chapter in the Integrated Report
section of the Annual Report 2022-23. The Bank has used
information technology extensively in its operations; for
details refer to the chapter Our Business Strategy in the
Integrated Report section of the Annual Report 2022-23.
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, 2023.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors confirm:
1.
2.
3.
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;
No units were granted under the Scheme 2022 during
fiscal 2023.
4.
that they have prepared the annual accounts on a
going concern basis;
102
DIRECTORS’ REPORTAnnual Report 2022-23 5.
6.
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.
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. ICICI Bank wishes to thank
its investors, the domestic and international banking
community, rating agencies, depositories and stock
exchanges for their support.
deep sense of appreciation to all the employees whose
outstanding professionalism, commitment and initiative
have 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
Girish Chandra Chaturvedi
Chairman
DIN: 00110996
June 29, 2023
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, 2023.
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
April 22, 2023
Sandeep Bakhshi
Managing Director & CEO
DIN: 0109206
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DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements DIRECTORS’ REPORT
ANNEXURE A
FORM No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2023
[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/the Bank). 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, to the extent 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
and considering the relaxations granted by the Ministry
of Corporate Affairs and Securities and Exchange Board
of India warranted due to the spread of the COVID-19
pandemic, we hereby report that in our opinion, the
Company has, during the audit period covering the
financial year ended on March 31, 2023, 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 March 31, 2023 according to the provisions of:
(i)
(ii)
The Companies Act, 2013 (‘the Act’) and the rules
made thereunder;
The Securities Contract (Regulation) Act, 1956
(‘SCRA’) and the rules made thereunder;
(iii)
The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;
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) The Securities and Exchange Board of India
(Substantial Acquisition of Shares and
Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India
Insider Trading) Regulations,
(Prohibition of
2015;
(c)
The Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2018;
(d) The Securities and Exchange Board of India
(Share Based Employee Benefits and Sweat
Equity) Regulations, 2021;
(e)
(f)
(g)
(h)
The Securities and Exchange Board of India
(Issue and Listing of Non-Convertible Securities)
Regulations, 2021;
The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer
Agents) Regulations, 1993
the
Companies Act and dealing with client; (Not
applicable to the Company during the audit
period);
regarding
The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2021;
(Not applicable to the Company during the audit
period);
The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 2018 (Not
applicable to the Company during the audit
period);
(iv)
Foreign Exchange Management Act, 1999 and
the rules and regulations made thereunder to the
(i)
The Securities and Exchange Board of India
(Merchant Bankers) Regulations, 1992;
104
DIRECTORS’ REPORTAnnual Report 2022-23
DIRECTORS’ REPORT
(j)
The Securities and Exchange Board of India
(Bankers to an Issue) Regulations, 1994;
(k)
The Securities and Exchange Board of India
(Debenture Trustee) Regulations, 1993;
(l)
The Securities and Exchange Board of India
(Custodian) Regulations, 1996;
(m) The Securities and Exchange Board of India
(Foreign Portfolio Investors) Regulations, 2019;
(n) The Securities and Exchange Board of India
(Stock Brokers) Regulations, 1992; and
(o) The Securities and Exchange Board of India
(Depositories and Participant) Regulations,
2018;
(vi) Other laws applicable specifically to the Company
namely:
(a)
(b)
The 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)
The Recovery of Debts Due to Banks and
Financial Institutions Act, 1993;
(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.
The Listing Agreements entered into by the Company
with BSE Limited and National Stock Exchange of
India Limited read with the Securities and Exchange
Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
During the period under review, the Company has
generally complied with the provisions of the Act, Rules,
Regulations, Guidelines, standards etc. mentioned above.
We report that:
The National Stock Exchange of India Limited and BSE
Limited have levied a fine of ` 11,800 each for delay in
submitting the notice of record date in one instance
under Regulation 60(2) of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015. The Bank
paid fines to both the stock exchanges and filed for waiver
of the fine. BSE and NSE has vide its communication dated
March 31, 2023 and May 15, 2023 respectively, waived
the fine.
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 was 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.
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 the following events occurred
during the audit period 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.
During the financial year ended March 31, 2023, the
Bank has redeemed various series of debentures
issue bonds, Private
in the nature of Public
placement bonds and Pension bonds aggregating
to ` 59,04,78,39,918/- and has complied with the
applicable laws.
Done a secondary
listing of following foreign
currency bonds issued under US $7,500,000,000
GMTN Programme and listed on Singapore Exchange
Securities Trading Limited, on Global Securities
Market platform at India International Exchange
(IFSC) Limited (India INX):
105
DIRECTORS’ REPORTIntegrated ReportStatutory ReportsFinancial Statements
DIRECTORS’ REPORT
ISIN Number 144A ISIN No. Reg S
Amount
Date of Issuance
Date of Maturity
-
XS1576750951
US$ 650,000,000
March 9, 2017
September 9, 2022
US45112EAG44
US45112FAJ57
US$ 800,000,000
March 18, 2016
March 18, 2026
US45112EAH27
US45112FAM86
US$ 500,000,000
December 14, 2017
December 14, 2027
3.
Issued and allotted:
•
•
21,000 senior unsecured redeemable long term bonds in the nature of debentures aggregating to ` 2,100.00
crores on private placement basis
50,000 senior unsecured redeemable long term bonds in the nature of debentures aggregating to ` 5,000.00
crores on private placement basis
4.
During the financial year ended March 31, 2023, the Bank has allotted 34,044,356 equity shares of face value of ` 2
each under the Employee Stock Option Scheme.
Place: Mumbai
Date: May 25, 2023
For Parikh Parekh & Associates
Company Secretaries
P. N. Parikh
Partner
FCS No.: 327 CP No.: 1228
UDIN: F000327E000380806
PR No.: 723/2020
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.
106
Annual Report 2022-23
DIRECTORS’ REPORT
’ANNEXURE A’
To,
The Members,
ICICI Bank Limited
Our report of even date is to be read along with this letter.
1.
2.
3.
4.
5.
6.
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.
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the
Company.
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.
Place: Mumbai
Date: May 25, 2023
For Parikh Parekh & Associates
Company Secretaries
P. N. Parikh
Partner
FCS No.: 327 CP No.: 1228
UDIN: F000327E000380806
PR No.: 723/2020
107
Integrated ReportStatutory ReportsFinancial Statements
DIRECTORS’ REPORT
ANNEXURE B
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
[Pursuant to Regulation 34(3) and Para C (10)(i) of Schedule V to the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]
To,
The Members of
ICICI Bank Limited
ICICI Bank Tower,
Near Chakli Circle,
Old Padra Road,
Vadodara - 390007
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of ICICI
Bank Limited having CIN L65190GJ1994PLC021012 and having registered office at ICICI Bank Tower, Near Chakli Circle,
Old Padra Road, Vadodara - 390007 (hereinafter referred to as ‘the Company’), produced before us by the Company for
the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with clause 10(i) of Para C of Schedule V
to the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification
Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the
Company & its officers, we hereby certify that none of the Directors on the Board of the Company as stated below for
the Financial Year ended March 31, 2023 have been debarred or disqualified from being appointed or continuing as
Directors of companies by the Securities and Exchange Board of India or the Ministry of Corporate Affairs or any such
other statutory authority.
Sl.
No
Name of the Director as on
March 31, 2023
DIN
Category of Directorship
Date of
Appointment
1. Mr. Girish Chandra Chaturvedi
00110996
Non-Executive - Independent Director
July 01, 2018
2. Mr. Hari L. Mundra
00287029
Non-Executive - Independent Director
October 26, 2018
3. Mr. S. Madhavan
06451889
Non-Executive - Independent Director
April 14, 2019
4. Ms. Neelam Dhawan
00871445
Non-Executive - Independent Director
January 12, 2018
5. Mr. Radhakrishnan Nair
07225354
Non-Executive - Independent Director
May 02, 2018
6. Mr. B. Sriram
02993708
Non-Executive - Independent Director
January 14, 2019
7. Mr. Uday Chitale
00043268
Non-Executive - Independent Director
January 17, 2018
8. Ms. Vibha Paul Rishi
05180796
Non-Executive - Independent Director
January 23, 2022
9. Mr. Sandeep Bakhshi
00109206
Managing Director & Chief Executive
Officer
October 15, 2018
10. Mr. Anup Bagchi
00105962 Wholetime Director
11. Mr. Sandeep Batra
03620913 Wholetime Director
12. Mr. Rakesh Jha
00042075 Wholetime Director
February 01, 2017
December 23, 2020
September 02, 2022
108
Annual Report 2022-23 DIRECTORS’ REPORT
Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither
an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management
has conducted the affairs of the Company.
Place: Mumbai
Date: April 22, 2023
For M/s Vinod Kothari & Company
Practicing Company Secretaries
Unique Code: P1996WB042300
Vinita Nair
Senior Partner
Membership No.: F10559
C P No.: 11902
Peer Review Certificate No.: 781/2020
UDIN: F010559E000168772
109
Integrated ReportStatutory ReportsFinancial Statements DIRECTORS’ REPORT
ANNEXURE C
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES
1.
Brief outline on CSR Policy of the Company
Corporate Social Responsibility (CSR) has been
a long-standing commitment at ICICI Bank and
forms an integral part of our activities. The Bank’s
contribution to social sector development includes
several pioneering interventions, and is implemented
through the involvement of stakeholders within the
Bank, the Group and the broader community. The
Bank established the ICICI Foundation for Inclusive
Growth (ICICI Foundation) in 2008 with a view to
significantly expand the ICICI Group’s activities in the
area of CSR. Over the last few years, ICICI Foundation
has developed significant projects
in specific
areas, and has built capabilities for direct project
implementation as opposed to extending financial
support to other organisations.
ICICI Bank’s objective
is to proactively support
meaningful socio-economic development in India
and enable a larger number of people to participate
in and benefit from India’s economic progress. This
is based on the belief that growth and development
are effective only when they result in wider access
to opportunities and benefit a broader section of the
society. ICICI Bank’s approach is to identify critical
areas of development that require investments and
intervention, and which can help to realize India’s
potential for growth and prosperity.
structure,
operating
The CSR Policy of the Bank sets the framework
guiding the Bank’s CSR activities. It outlines the
framework,
governance
monitoring mechanism, guiding principles
for
selecting CSR projects and CSR activities that could
be undertaken. The Bank's CSR activities are largely
focused in the areas of healthcare, environment,
societal development,
sustainable
livelihoods, creating social awareness and activities
like disaster relief or other activities under Schedule
VII of the Companies Act, 2013 (“the Act”).
supporting
The CSR Policy was last approved by the Committee
in April 2021. The web-link to the Bank’s CSR Policy
is: https://www.icicibank.com/about-us/corporate-
social-responsibility
2. Composition of the CSR Committee
Name of Director
Sr.
No.
Designation/Nature of
Directorship
1. Girish Chandra Chaturvedi
(Chairman of CSR Committee)
2. Radhakrishnan Nair
3. Uday Chitale
4. Vibha Paul Rishi
5. Anup Bagchi
(upto April 30, 2023)
Non-Executive (part-time)
Chairman / Independent Director
Independent Director
Independent Director
Independent Director
Executive Director
Number of
meetings of CSR
Committee held
during the year
Number of meetings
of CSR Committee
attended during
the year
4
4
4
4
4
4
4
4
4
4
3.
Provide the web-link where Composition of CSR Committee, CSR Policy and CSR projects
approved by the Board are disclosed on the website of the Company
Link to the Bank’s CSR page is:
https://www.icicibank.com/about-us/corporate-social-responsibility
110
Annual Report 2022-23
DIRECTORS’ REPORT
4.
Provide the executive summary along with
web-link(s) of Impact Assessment of CSR
Projects carried out in pursuance of sub-rule
(3) of rule 8, if applicable
The Bank conducted impact assessment through
external agencies of eight projects undertaken in
fiscal 2022. Of these, six projects were implemented
through ICICI Foundation and two projects were
directly implemented by the Bank.
Projects implemented through ICICI Foundation were:
•
•
•
Dialysis machines provided to select hospitals in
seven states
Funds provided for surgeries/procedures to Sri
Sathya Sai Hospital
Livelihood
distribution
project
through
e-rickshaws
• ASHA worker programme
•
•
Education project ‘Prabal Super-50’
Project ‘Connectivity through bridge’
Projects directly implemented by the Bank were:
•
•
The financial inclusion programme
Social awareness programme.
The executive summary of impact assessment of the
projects as referred above is provided in Annexure 1
of the Annual Report on CSR.
Link to the impact assessment reports on the Bank’s
website:
https: //www.icicibank.com/about-us/corporate-
social-responsibility
5.
(a) Average net profit of the Company as per
sub‑section (5) of Section 135
` 200.43 billion
(b) Two percent of average net profit of the
Company as per sub-section (5) of Section 135
` 4,008.5 million
(c) Surplus arising out of the CSR Projects or
programmes or activities of the previous
financial years
` 139.9 million
(d) Amount required to be set‑off for the financial
year, if any
` 70.0 million
(e) Total CSR obligation for the financial year
[(b)+(c)‑(d)]
` 4,078.4 million
6.
(a) Amount spent on CSR Projects (both ongoing
project and other than ongoing projects)
` 4,625.6 million (Excludes surplus arising from
CSR projects of previous financial year and
spent in fiscal 2023)
(b) Amount spent in Administrative Overheads
Nil
(c) Amount spent on Impact Assessment, if
applicable
` 1.0 million
(d) Total amount spent for the Financial Year
[(a) + (b) +(c)]
` 4,626.6 million (Excludes surplus arising from
CSR projects of previous financial year and
spent in fiscal 2023)
(e) CSR amount spent or unspent for the Financial Year
Total amount
spent in fiscal
2023
(in ` million)
Total amount transferred to
Unspent CSR Account as per
Section 135(6)
Amount unspent (in `)
Amount transferred to any fund specified under
Schedule VII as per second proviso to Section 135(5)
Amount
Date of transfer
Name of the Fund
Amount
Date of transfer
4,626.6*
Nil
-
-
Nil
-
* Excludes surplus arising from CSR projects of previous financial year and spent in fiscal 2023.
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Integrated ReportStatutory ReportsFinancial Statements
DIRECTORS’ REPORT
(f) Excess amount for set‑off, if any
Sr. No. Particular
Amount (in ` million)
(1)
(i)
(ii)
(iii)
(iv)
(2)
2% of average net profit of the Company as per Section 135(5)
Total amount spent for the financial year
Excess amount spent for the financial year [(ii)-(i)]
Surplus arising out of the CSR projects or programmes or activities of the
previous financial years, if any
(v)
Amount available for set off in succeeding financial years [(iii)-(iv)]
* Adjusted for the excess amount of ` 70.0 million spent during fiscal 2022 and available for set off in fiscal 2023
# Includes amount spent towards surplus arising from CSR projects of previous financial year
(3)
3,938.5*
4,766.5#
828.0
139.9
688.1
7.
Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years
Not applicable
8.
Whether any capital assets have been created or acquired through Corporate Social
Responsibility amount spent in the Financial Year
Yes, the details will be available on the Bank’s website at https://www.icicibank.com/about-us/annual
9.
Specify the reason(s), if the Company has failed to spend two per cent of the average net profit
as per sub-section (5) of Section 135
Girish Chandra Chaturvedi
CSR Committee Chairman
DIN: 00110996
Not applicable
Sandeep Batra
Executive Director
DIN: 03620913
June 29, 2023
112
Annual Report 2022-23
DIRECTORS’ REPORT
ANNEXURE 1: SUMMARY OF IMPACT ASSESSMENT STUDY
1.
Dialysis machines provided to select
hospitals in seven states
The dialysis project aimed to develop a sustainable
and collaborative ecosystem for providing access to
affordable and high-quality dialysis services to renal
patients. The initiative, implemented through ICICI
Foundation, was expected to benefit those who had
less or no access to these facilities. The Bank provided
211 dialysis machines to 76 hospitals in seven states
during fiscal 2022. The project was implemented in a
public-private partnership mode, with infrastructure
and consummables being made available by the
government and dialysis machines being funded by
the Bank.
Key findings of the study were as follows:
•
•
•
On an average, two to three shifts of dialysis
were done in a day, with no major breakdown
issues with the machines.
The programme has made dialysis services
accessible and affordable to the very poor and
marginal communities in remote locations. Most
of the patients were from below poverty line and
received services at a nominal price.
The Social Return on Investment (SROI) in
the project was significant with every ` 1.00
invested contributing to a social return of ` 25.5
over a 10-year period.
•
•
•
•
60% children were less than five years of age
and 30% were in the age-cohort of 5-12 years;
58% of those treated were boys and 42% were
girls.
Most of the people who received services
were from economically weaker section and
other backward and scheduled castes. The
support extended made paediatric cardiac care
accessible and affordable to these people who
could not afford the treatment.
Of the families surveyed, 45% were from below
poverty line, with average monthly income of
around ` 12,000.
Contribution to SSSSH gave an SROI value of
19:1.
3.
Livelihood project through e-rickshaws
distribution
through
This project was undertaken
ICICI
Foundation in collaboration with the Kaushambi
district administration in Uttar Pradesh. The local
district authority introduced a Garib Sarthi Yojana
in December 2021 to provide sustainable source
of income to the underserved and marginalized
communities in the district. As part of the initiative,
electric rickshaws (e-rickshaws) were made available
to families below poverty line from rural and urban
areas. The funding was for procurement of the
e-rickshaws.
2.
Funds provided for surgeries/procedures to
Sri Sathya Sai Hospital
Key impact of the project were:
As part of the focus on healthcare, the Bank, through
ICICI Foundation, had provided funds to Sri Sathya
Sai Sanjeevani Hospital (SSSSH) for heart treatment
of children. The funds could support 400 child heart
surgeries, which is provided free of cost by the
hospital. The assessment focused on understanding
the utilization of funds and the manner in which it
had contributed towards improving the lives of the
beneficiaries.
Key findings of the study were:
•
The 400 beneficiaries were from 15 states,
with maximum from Uttar Pradesh, Bihar,
Maharashtra, Odisha and Madhya Pradesh.
•
•
•
•
74% of the beneficiaries belonged to the socially
marginalized sections of society.
Around 80% of the beneficiaries were involved in
low-paying jobs such as farming or daily wage
labour.
80% of the beneficiaries stated that income
had increased post the programme, and 90% of
them earned more than ` 7,000 per month from
the e-rickshaws.
63% of
the beneficiaries had seen an
improvement in their lifestyle sufficing through
material well-being in terms of assets procured
and living conditions.
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DIRECTORS’ REPORT
•
•
•
60% beneficiaries indicated they were able to
save from the income earned.
At the time of the survey, 70% of the beneficiaries
had started using the e-rickshaws commercially.
A drawback noted by the study was that
over 60% of the beneficiaries received their
e-rickshaws after 11 months from submission of
their application.
4.
ASHA worker programme
With a view to strengthen the primary healthcare
efforts for women and children undertaken through
ASHA workers, the Bank, through ICICI Foundation,
provided support to 75,000 ASHA workers in fiscal
2022. The women workers were provided with
materials like bags, information booklet, education
and communication material, charts for maintaining
records, registers, and other such material that would
help them in effective delivery of support for maternal
and child health. The programme was implemented
in all districts of Maharashtra.
Key impact of the project were as follows:
•
•
•
•
•
90% of ASHA workers regularly used the kits for
counselling and home visits.
82% of ASHA workers indicated that they were
able to correctly answer majority of the queries
relating to ante-natal care, and 78% indicated
they could appropriately respond to queries
relating to post-natal care.
88% ASHA workers reported that maternal and
child health monitoring improved using the kits.
62% informed that they were able to prevent
complications faced by women during pregnancy
through regular monitoring.
The SROI for the project was ` 12.13 for every
rupee spent.
5.
Education project ‘Prabal Super-50’
The Prabal SUPER-50 project supported children
of army personnel by providing one-year free
residential boarding, coaching and mentoring for
medical entrance exam (NEET) preparation. The
project was executed through ICICI Foundation. The
key stakeholders were the army that provided the
basic infrastructure, Centre for Social Responsibility
114
and Leadership (CSRL) which was the implementing
partner and ICICI Foundation which ensured the
financial stability of the project.
Some key insights from the project were:
•
•
•
•
•
The programme delivered 100% pass rate of
the students who appeared for the NEET 2022
exam.
77% of the students were children of retired
army personnel and 23% were of personnel in-
service.
100% of the students confirmed coaching was
in line with the NEET syllabus.
96% of students rated the residential facilities
provided at the campus as ‘4 and above’ (out of
5).
19% of the students have been placed in elite
government medical colleges.
6.
Project ‘Connectivity through bridge’
Rudraprayag,
Under this project, 11 bridges were installed over
streams and other water bodies in the hilly areas
of Uttarakhand, primarily, Almora, Champawat,
Nainital,
in
collaboration with Himalayan Environmental Studies
and Conservation Organization (HESCO). The project
aimed at providing a bridge for rural connectivity in
the mountainous region and positively contributing
to the socio-economic and ecological factors for the
local people.
and Uttarkashi
Some key impact of the project for the local people
were:
•
•
•
•
Increased access to markets, timely delivery of
goods and reduction in spoilage of goods due to
improved access to transportation.
Improvement in the access to health services,
educational services, market, and farm for local
people.
Reduction in transportation time, cost due to
improved access to road, bridge and availability
of alternative shorter route.
Reduction
especially during monsoon.
in accidents and risks
involved,
•
Ease in the availability of emergency services.
Annual Report 2022-23
DIRECTORS’ REPORT
7.
The financial inclusion programme
Financial inclusion programme has been implemented
by the Bank for ensuring access to financial services,
timely and adequate credit for vulnerable groups
such as weaker sections and low-income groups
at an affordable cost. The Bank has taken several
steps towards this goal, including using a network
of Business Correspondents (BCs) and branches,
offering digital payment solutions, and encouraging
customers to conduct digital transactions.
The key findings are:
•
•
•
•
44% of respondents developed habit of saving
and planning expenses. Majority were not able
to do so due to low and unstable income.
68% found accessing financial services to be
convenient.
73% of respondents informed that knowledge of
various financial services and products improved
with the assistance of the BCs.
By providing access to financial services and to
government schemes, the program has helped
marginalized families improve their standard of
living.
8.
Social Awareness Programme
The social awareness programme of the Bank aims
to spread messages and improve awareness on road
safety, sanitation, environment and others, and bring
about a behavioral change among people to make
them socially responsible citizens. In this programme,
various signage and boards were placed at several
locations across
India. The Bank collaborated
with local government bodies to ensure that the
messages were relevant and contextualized to the
local population. In fiscal 2022, the project involved
installation of 3,500 boards at over 43 different sites/
locations in Pune, Bangalore, Chennai and Kolkata.
The key findings of the assessment were:
•
•
•
•
•
•
The programme met three of the MCA’s approved
activities under Schedule VII (Section 135) of the
Companies Act, 2013 and four areas of national
policies.
The programme was aligned with seven
UN Sustainable Development Goals (SDGs)
which
include good health and well-being,
quality education, clean water and sanitation,
sustainable cities and communities, responsible
consumption and production, life below water
and life on land.
The programme also aligned with three of the
National Guidelines on Responsible Business
Conduct Principles under SEBI’s Business
Responsibility & Sustainability Report (BRSR).
The daily effective circulation (DEC), which is
the average number of people passing by, was
observed to be more than 1.48 crore. This implies
an annual visibility impression of 176 crore.
One of the recommendations in the report is to
appropriately size and place the display board
in heavy traffic areas to improve visibility and
effectiveness of the social message.
The Program also aligns with the SEBI’s
BRSR principles pertaining to protection and
restoration of environment and promoting
inclusive growth and equitable development.
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AUDITORS’ CERTIFICATE ON
CORPORATE GOVERNANCE
To the Members of
ICICI Bank Limited
We have examined the compliance of conditions of
Corporate Governance by ICICI Bank Limited (the ‘Bank’), for
the year ended March 31, 2023, as stipulated in regulations
17 to 27 and clauses (b) to (i) and (t) of regulation 46(2)
and paragraphs C, D, E of Schedule V of the Securities and
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (‘Listing Regulations’)
and as amended from time to time.
MANAGEMENT’S RESPONSIBILITY
The compliance of conditions of Corporate Governance is
the responsibility of the management. This responsibility
includes the design, implementation, and maintenance of
internal control procedures to ensure compliance with the
conditions of the Corporate Governance stipulated in the
Listing Regulations.
AUDITOR’S RESPONSIBILITY
Our responsibility is limited to examining the procedures
and implementation thereof, adopted by the Bank for
ensuring compliance with the conditions of Corporate
Governance. It is neither an audit nor an expression of
opinion on the financial statements of the Bank.
We have examined the books of account and other
relevant records and documents maintained by the Bank
for the purposes of providing reasonable assurance on the
compliance with Corporate Governance requirements by
the Bank.
We have carried out an examination of the relevant
records of the Bank in accordance with the Guidance Note
on Certification of Corporate Governance issued by the
Institute of the Chartered Accountants of India (the ICAI),
the Standards on Auditing specified under Section 143(10)
of the Companies Act, 2013, in so far as applicable for the
purpose of this certificate and as per the 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.
the
We have complied with
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
Based on our examination of the relevant records and
according to the information and explanations given to us,
we certify that the Bank has complied with the conditions
of Corporate Governance as stipulated in regulations 17
to 27 and clauses (b) to (i) and (t) of regulation 46(2) and
paragraphs C, D, E of Schedule V of the Listing Regulations
during the year ended March 31, 2023, as applicable.
We further state that such compliance is neither an
assurance as to the future viability of the Bank nor the
efficiency or effectiveness with which the management
has conducted the affairs of the Bank.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Tushar Kurani
Membership No.: 118580
UDIN: 23118580BGXRQX8542
Place: Mumbai
Date: June 21, 2023
For KKC & Associates LLP
Chartered Accountants
(formerly Khimji Kunverji & Co LLP)
ICAI Firm Registration No. 105146W/W100621
Gautam Shah
Membership No.: 117348
UDIN: 23117348BGSZJJ6336
Place: Mumbai
Date: June 21, 2023
116
Annual Report 2022-23 MANAGEMENT DISCUSSION & ANALYSIS
OPERATING ENVIRONMENT
Global growth momentum is expected to slow from 2.7%
year-on-year in calendar year 2022 to 2.1% in calendar
year 2023 led primarily by a weaker outlook in developed
market (DM) economies with risks to the outlook being to
the downside. The lagged effect of monetary tightening
undertaken over calendar year 2022 along with weakening
credit markets will work as the main headwinds in terms
of pulling global growth lower. At the same time, headline
inflation is expected to drop-off reflecting easing in
supply-side inflation pressures. However, DM core inflation
remains elevated and a concern that will restrict the ability
of DM central banks to turn accommodative over calendar
year 2023. Risks to the global growth outlook are to the
downside reflected in: (a) possibility of further strain in
the DM banking sector and (b) a further escalation in geo-
political tensions.
Domestically, India recovered from the Covid-19 pandemic
as the third wave started receding from January 2022.
However, just when the Covid-19 pandemic was getting
over, the world witnessed another major shock in the
form of the Russia-Ukraine crisis, leading to a spike in
commodity prices. The subsequent sanctions on Russia
further disrupted commodity markets, increased volatility
and uncertainty, and kept an upward pressure on inflation.
Consequently, domestic inflation averaged 6.7% during
fiscal 2023, putting pressure on consumption growth.
Overall, India’s Gross Domestic Product (GDP) grew 7.2%
in fiscal 2023 mainly driven by strong investments and
exports growth.
Growth
In the fourth quarter of fiscal 2023, India’s real Gross
Value Added (GVA) grew 6.5% year-on-year. Real GDP
growth came at 6.1% year-on-year in the fourth quarter
of fiscal 2023, taking fiscal 2023 growth to 7.2%. The
notable development emerged from industry (particularly
manufacturing) which recorded higher growth than
implied in the Second Advance Estimates (SAE) due to a
turnaround in profitability on the back of lower raw material
prices. Agriculture recorded a growth of 5.5% year-on-
year during the fourth quarter of fiscal 2023, the highest
quarterly growth since March 2020. Services sector grew
6.9% year-on-year, mainly due to an uptick in trade and
travel services. From the expenditure side, consumption
recorded muted growth. Private consumption grew just
2.8% year-on-year, while government consumption grew
2.3% year-on-year. Investments, as represented by real
Gross Fixed Capital Formation (GFCF), grew 8.9% year-
on-year up from 8.0% in the third quarter and 4.9% in the
fourth quarter of fiscal 2023 on the back of infrastructure
thrust by the government and good growth in capital
expenditure.
Inflation
Inflation, as measured by the Consumer Price Index (CPI),
softened from 7.0% year-on-year in March 2022 to 5.7%
year-on-year in March 2023, compared to an average
inflation of 6.7% year-on-year in fiscal 2023. Food inflation
too eased to 4.2% year-on-year, while core inflation was
lower at 5.2% year-on-year. The most important factor
working in favour of inflation is lower global commodity
and oil prices. Given the above backdrop along with muted
commodity prices, inflation estimates have been lowered
to 5.1% year-on-year in fiscal 2024 as compared to 5.3%
earlier. However, upside risks due to a below normal
rainfall (led by El-Nino) could push the food prices higher
in case of pulses and rice.
Interest rates
In May 2022, the Monetary Policy Committee (MPC)
delivered its first post-pandemic hike of 40 basis points,
taking the repo rate to 4.4%. More rate hikes followed: 50
basis points in June 2022, 50 basis points in August 2022,
50 basis points in September 2022, 35 basis points in
December 2022 and 25 basis points in February 2023,
taking the cumulative rate hikes to 250 basis points
during fiscal 2023. However, the MPC surprised markets
by keeping the policy rate unchanged at 6.5% in the
meeting held in April 2023, while the stance remained
unchanged. System liquidity reduced from an average of
6.39 trillion in March 2022 to 32.36 billion in March 2023.
The transmission of monetary policy resulted in increase in
interest rates in the banking system. Between April 2022
and March 2023, the weighted average lending rate
(WALR) of commercial banks on fresh rupee loans
increased by 169 basis points.
Financial markets
During fiscal 2023, the Rupee depreciated by 8.4% from
` 75.79 per USD at March 31, 2022 to ` 82.18 per USD
at March 31, 2023. With the global turmoil due to the
continuing Russia-Ukraine war, the Rupee touched ` 82.99
per USD at October 19, 2022. The benchmark S&P BSE
Sensex increased by 0.7% during fiscal 2023 compared to
117
Integrated ReportStatutory ReportsFinancial Statements MANAGEMENT DISCUSSION & ANALYSIS
18.3% in fiscal 2022. The yields on the benchmark 10-year
government securities increased from 6.84% at March 31,
2022 to 7.31% at March 31, 2023. The yield fluctuated
during the year, with the highest at 7.62% on June 16,
2022. It cooled down to 7.29% by July 6, 2022.
Banking sector trends
Non-food credit of the banking system displayed robust
growth during fiscal 2023, with growth of 15.4% compared
to 8.7% in fiscal 2022, with incremental credit growth of
` 18.2 trillion in the year. With the latest sectoral break-up
of credit data available till April 2023, credit growth was
led by services (21.6% year-on-year) and personal credit
(19.4% year-on-year). In addition, industry credit also
showed an uptick in growth at 7.0% year-on-year.
to RBI’s Financial Stability Report of
According
December 2022, non-performing assets
(NPAs) of
scheduled commercial banks continued to decline in
fiscal 2023, with gross NPA ratio at 5.0% and net NPA
ratio at 1.3% at September 30, 2022 compared to a
gross NPA ratio of 6.9% and net NPA ratio of 2.3% at
September 30, 2021. Restructuring of loans for the MSME
sector impacted by the second Covid-19 wave under
Resolution Framework 2.0 stood at 2.3% of total MSME
advances as on September 30, 2022.
Outlook
The MPC expectedly kept the repo rate unchanged at
the June 2023 review. It also kept the stance of monetary
policy unchanged at ‘withdrawal of accommodation’. A
long pause on rates by the MPC is expected, with rate cuts
possible in the first few months of calendar year 2024.
STRATEGY
In fiscal 2023, the Bank maintained its strategic focus on
profitable growth in business within the guardrails of risk
and compliance. The Bank grew its credit portfolio with
a focus on granularity and saw healthy growth across
retail, business banking and wholesale portfolios. The
Bank continued to focus on holistically serving its clients
and their ecosystems. The Bank sought to maintain
and enhance its liability franchise. The Bank focused on
maintaining a strong balance sheet, with robust liquidity,
prudent provisioning and healthy capital adequacy. The
Bank’s capital adequacy ratios were significantly above
regulatory requirements as of March 31, 2023.
Going forward, the Bank would focus on maximizing the
profit before tax (excluding treasury gains) within the
guardrails of compliance and risk management. The Bank
believes there are significant opportunities for profitable
growth across various sectors of the Indian economy. The
Risk Appetite and Enterprise Risk Management framework
articulates the Bank’s risk appetite and drills it down into a
limit framework for various risk categories. The Bank will
focus on growing its loan portfolio in a granular manner
with a focus on risk and reward, with return of capital and
containment of provisions within targeted levels being a
key imperative. There are no specific targets for loan mix
or segment-wise loan growth. The Bank would aim to
continue to grow its deposit franchise, maintain a stable
and healthy funding profile and competitive advantage in
cost of funds.
See also “Integrated Report – Our Business Strategy”.
STANDALONE FINANCIALS AS PER INDIAN
GAAP
Summary
Profit before tax (excluding treasury gains) increased by
43.0% from 297.06 billion in fiscal 2022 to 424.73 billion
in fiscal 2023. Core operating profit (i.e. profit before
provisions and tax, excluding treasury gains) increased by
28.1% from ` 383.47 billion in fiscal 2022 to ` 491.39 billion
in fiscal 2023 primarily due to an increase in net interest
income by ` 146.63 billion and fee income by ` 23.14
billion, offset, in part, by an increase in operating expenses
by ` 61.40 billion. Provisions and contingencies (excluding
provision for tax) decreased by 22.9% from ` 86.41 billion
in fiscal 2022 to ` 66.66 billion in fiscal 2023. Gains from
treasury-related activities decreased from a gain of ` 9.03
billion in fiscal 2022 to a loss of ` 0.52 billion in fiscal 2023.
Profit after tax increased from ` 233.39 billion in fiscal
2022 to ` 318.96 billion in fiscal 2023.
Net interest income increased by 30.9% from ` 474.66
billion in fiscal 2022 to ` 621.29 billion in fiscal 2023 due
to an increase in the net interest margin (NIM) and an
increase in the average interest-earning assets.
Fee income increased by 14.8% from ` 156.87 billion in
fiscal 2022 to ` 180.01 billion in fiscal 2023. Dividend from
subsidiaries/joint ventures/associates decreased by 2.5%
from ` 18.29 billion in fiscal 2022 to ` 17.84 billion in fiscal
2023. Operating expenses increased by 23.0% from ` 267.33
billion in fiscal 2022 to ` 328.73 billion in fiscal 2023.
118
Annual Report 2022-23 MANAGEMENT DISCUSSION & ANALYSIS
Provisions and contingencies (excluding provision for tax)
decreased by 22.9% from ` 86.41 billion in fiscal 2022 to
` 66.66 billion in fiscal 2023 primarily due to a write-back
of provision for non-performing and other assets, offset,
in part, by an increase in contingency provisions made
on a prudent basis, and provision for investments. There
was a write-back of ` 6.23 billion in provision for non-
performing and other assets in fiscal 2023 compared to
a provision of ` 61.64 billion in fiscal 2022. During fiscal
2023, there were higher recoveries and upgrades from
non-performing assets (NPA) resulting in net write-back
of provision, offset, in part, by an increase in provisioning
rate for certain categories of NPAs. During fiscal 2023, the
Bank changed its provisioning norms on NPAs to make
them more conservative. In fiscal 2022, the provision for
non-performing and other assets also included provision
on loans restructured under Resolution Framework for
COVID-19.
The provision coverage ratio on NPAs increased from
79.2% at March 31, 2022 to 82.8% at March 31, 2023.
During fiscal 2023, the Bank made a contingency provision
amounting to ` 56.50 billion (fiscal 2022: write-back of
` 0.25 billion), on a prudent basis, to further strengthen
the balance sheet. The Bank held a total contingency
provision of ` 131.00 billion at March 31, 2023.
The income tax expense increased from ` 72.70 billion in
fiscal 2022 to ` 105.25 billion in fiscal 2023. The effective
tax rate increased from 23.7% in fiscal 2022 to 24.8%
in fiscal 2023 primarily due to change in composition of
income.
Net worth increased by 17.7% from ` 1,705.12 billion at
March 31, 2022 to ` 2,007.16 billion at March 31, 2023
primarily due to accretion to reserves out of retained profit,
offset, in part, by payment of dividend for fiscal 2022.
Total assets increased by 12.3% from ` 14,112.98 billion
at March 31, 2022 to ` 15,842.07 billion at March 31, 2023.
Total advances increased by 18.7% from ` 8,590.20 billion
at March 31, 2022 to ` 10,196.38 billion at March 31,
2023 primarily due to an increase in domestic advances
by 20.5%. Total investments increased by 16.8% from
` 3,102.41 billion at March 31, 2022 to ` 3,623.30 billion
at March 31, 2023. Cash and cash equivalents decreased
by 28.8% from ` 1,678.22 billion at March 31, 2022 to
` 1,194.38 billion at March 31, 2023.
The weighted average high-quality
liquid assets,
maintained during the three months ended March 31, 2023
were ` 3,234.60 billion (three months ended March 31,
2022: ` 3,197.27 billion). The average liquidity coverage
ratio was 124.13% for the three months ended March 31,
2023 as against the requirement of 100.00%.
Total deposits increased by 10.9% from ` 10,645.72 billion
at March 31, 2022 to ` 11,808.41 billion at March 31,
2023. Total deposits increased by 8.3% from ` 10,900.08
billion at September 30, 2022 to ` 11,808.41 billion at
March 31, 2023. Term deposits increased by 17.1%
from ` 5,461.35 billion at March 31, 2022 to ` 6,395.79
billion at March 31, 2023. Current and savings account
(CASA) deposits increased by 4.4% from ` 5,184.37
billion at March 31, 2022 to ` 5,412.62 billion at March 31,
2023. Average CASA deposits increased by 13.3% from
` 4,198.86 billion in fiscal 2022 to ` 4,758.90 billion in fiscal
2023. Borrowings increased by 11.3% from ` 1,072.31
billion at March 31, 2022 to ` 1,193.25 billion at March 31,
2023.
The Bank had a business center (branch) network of
5,900 branches, and network of 16,650 ATMs/CRMs at
March 31, 2023.
The Bank is subject to Basel III capital adequacy guidelines
stipulated by RBI. The total capital adequacy ratio of
the Bank at March 31, 2023 (after deducting proposed
dividend for fiscal 2023 from capital funds) in accordance
with RBI guidelines on Basel III was 18.34% as compared
to 19.16% at March 31, 2022. The Tier-1 capital adequacy
ratio was 17.60% at March 31, 2023 as compared to
18.35% at March 31, 2022. The Common Equity Tier 1
(CET-1) ratio was 17.12% at March 31, 2023 as compared
to 17.60% at March 31, 2022.
119
Integrated ReportStatutory ReportsFinancial Statements MANAGEMENT DISCUSSION & ANALYSIS
OPERATING RESULTS DATA
The following table sets forth, for the periods indicated, the operating results data.
Particulars
Interest income
Interest expense
Net interest income
Fee income1
Dividend from subsidiaries/joint ventures/associates
Other income
Core operating income
Operating expenses
Core operating profit
Treasury gains
Operating profit
Provisions, net of write-backs
Profit before tax
Tax, including deferred tax
Profit after tax
Fiscal 2022
` 863.75
389.09
474.66
156.87
18.29
0.98
650.80
267.33
383.47
9.03
392.50
86.41
306.09
72.70
` 233.39
` in billion, except percentages
Fiscal 2023
` 1,092.31
% change
26.5%
471.02
621.29
180.01
17.84
0.98
820.12
328.73
491.39
(0.52)
490.87
66.66
424.21
105.25
` 318.96
21.1
30.9
14.8
(2.5)
-
26.0
23.0
28.1
-
25.1
(22.9)
38.6
44.8
36.7%
1 Includes merchant foreign exchange income and margin on customer derivative transactions.
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.
Key ratios
The following table sets forth, for the periods indicated, the key financial ratios.
Particulars
Return on average equity (%)1
Return on average assets (%)2
Net interest margin (%)
Cost to income (%)3
Provisions to core operating profit (%)
Earnings per share (`)
Book value per share (`)
Fiscal 2022
Fiscal 2023
14.77
1.84
3.96
40.51
22.53
33.66
17.28
2.16
4.48
40.11
13.57
45.79
245.38
287.44
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.
The return on average equity, return on average assets and earnings per share increased primarily due to an increase in
profit after tax.
120
Annual Report 2022-23 MANAGEMENT DISCUSSION & ANALYSIS
Net interest income and spread analysis
The following table sets forth, for the periods indicated, the net interest income and spread analysis.
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
Fiscal 2022
Fiscal 2023
% change
` in billion, except percentages
` 863.75
389.09
474.66
11,979.51
` 10,478.20
3.96%
7.21%
3.71%
3.50%
` 1,092.31
471.02
621.29
13,872.53
` 11,998.16
4.48%
7.87%
3.93%
3.94%
26.5%
21.1
30.9
15.8
14.5%
-
-
-
-
1 All amounts have been rounded off to the nearest ` 10.0 million.
Net interest income increased by 30.9% from ` 474.66 billion in fiscal 2022 to ` 621.29 billion in fiscal 2023 primarily due
to an increase in the net interest margin by 52 basis points and an increase of 15.8% in the average interest-earning
assets.
Net interest margin increased by 52 basis points from 3.96% in fiscal 2022 to 4.48% in fiscal 2023. The yield on average
interest-earning assets increased by 66 basis points from 7.21% in fiscal 2022 to 7.87% in fiscal 2023. The cost of funds
increased by 22 basis points from 3.71% in fiscal 2022 to 3.93% in fiscal 2023. The interest spread increased by 44 basis
points from 3.50% in fiscal 2022 to 3.94% in fiscal 2023. The full impact of rise in interest rates from the beginning of
fiscal year 2023 is expected to be reflected in the cost of domestic term deposits during fiscal 2024.
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 2022
Fiscal 2023
7.21%
7.87%
8.27
5.98
6.22
4.72
4.04
3.71
3.53
2.27
4.54
5.37
3.50
8.94
6.57
6.62
6.16
3.38
3.93
3.66
2.28
4.78
5.97
3.94
3.96%
4.48%
121
Integrated ReportStatutory ReportsFinancial Statements
MANAGEMENT DISCUSSION & ANALYSIS
The yield on average interest-earning assets increased
by 66 basis points from 7.21% in fiscal 2022 to 7.87% in
fiscal 2023 primarily due to the following factors:
The yield on domestic advances increased by 52
basis points from 8.64% in fiscal 2022 to 9.16%
in fiscal 2023. The yield on advances increased
primarily due to re-pricing of existing floating rate
loans linked to the repo rate and the Bank’s Marginal
Cost of funds based Lending Rate (MCLR) to a higher
rate and new lending at higher rates. At March 31,
2023, of the total domestic loan book, 30% had fixed
interest rates, 45% had interest rates linked to repo
rate, 20% had interest rates linked to MCLR and other
older benchmarks and 5% had interest rates linked to
T-bills.
RBI increased the repo rate by 250 basis points from
4.00% in May 2022 to 6.50% in February 2023. The
Bank’s 1-year MCLR increased by 150 basis points in
phases during fiscal 2023 from 7.25% in March 2022
to 8.75% in March 2023. The impact of increase in
repo rates from May 2022 started reflecting in overall
yield through repricing of the repo and T-bill linked
portfolio from Q2-2023 and onwards. For MCLR
linked loans, the effect on the yields is based on
respective reset dates of underlying loans. Further,
the future movement in the yield on advances will
depend on the increase/decrease in the repo rate and
the systemic interest rates.
The yield on overseas advances increased by 239
basis points from 1.51% in fiscal 2022 to 3.90% in
fiscal 2023 primarily due to repricing of floating rate
advances and new lending at higher rates on account
of the ongoing rate hike cycle by the US Federal
Reserve. The yield on overseas advances was also
positively impacted by higher interest collection on
NPAs.
The overall yield on average advances increased by
67 basis points from 8.27% in fiscal 2022 to 8.94% in
fiscal 2023.
The yield on average interest-earning investments
increased by 59 basis points from 5.98% in fiscal
2022 to 6.57% in fiscal 2023. The yield on Indian
increased by 40 basis
government
points from 6.22% in fiscal 2022 to 6.62% in fiscal
2023. This was primarily due to reset of floating rate
bonds linked to Treasury bills (T-bills) at higher rates
pursuant to a significant increase in treasury bill
investments
•
•
122
•
yields and new investment in government securities
at higher yields.
The yield on non-SLR investments increased by 144
basis points from 4.72% in fiscal 2022 to 6.16% in
fiscal 2023 primarily due to an increase in yield on
bonds and debentures, foreign government securities
and commercial paper.
The yield on other interest-earning assets decreased
by 66 basis points from 4.04% in fiscal 2022 to 3.38%
in fiscal 2023. The decrease was primarily due to a
decrease in interest income on funding swaps and an
increase in average balance with RBI which does not
earn any interest. During first quarter of fiscal 2023,
RBI had increased the cash reserve ratio from 4.00%
to 4.50%. The decrease in yield on other interest-
earning assets was offset, in part, by an increase in
yield on call money lent and an increase in yield on
balance with other banks.
Interest on income tax refund decreased from ` 2.43
billion in fiscal 2022 to ` 1.14 billion in fiscal 2023.
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 22 basis points from 3.71%
in fiscal 2022 to 3.93% in fiscal 2023 primarily due to the
following factors:
•
The cost of average deposits increased from 3.53%
in fiscal 2022 to 3.66% in fiscal 2023 primarily due
to an increase in cost of domestic term deposits. The
cost of domestic term deposits increased by 23 basis
points from 4.57% in fiscal 2022 to 4.80% in fiscal
2023. The peak rate for retail term deposits increased
significantly in phases from 5.75% in May 2022 to
7.10% in February 2023 on account of significant
increase in repo rate by the Reserve Bank of India.
The full impact of the rise in interest rates on deposits
from the beginning of fiscal year 2023 will be reflected
in the cost of domestic term deposits during fiscal
2024.
The cost of savings account deposits increased
marginally from 3.15% in fiscal 2022 to 3.16% in
fiscal 2023. The average CASA deposits increased
from 44.5% of total average deposits in fiscal 2022
to 44.7% of total average deposits in fiscal 2023.
Average CASA deposits were 39.7% of the total
Annual Report 2022-23
MANAGEMENT DISCUSSION & ANALYSIS
funding (i.e., deposits and borrowings) for fiscal 2023
as compared to 40.1% for fiscal 2022.
increase in cost of term borrowings on account of
ongoing rate hike cycle by the US Federal Reserve.
•
The cost of borrowings increased by 60 basis points
from 5.37% in fiscal 2022 to 5.97% in fiscal 2023.
The cost of domestic borrowings increased by 28
basis points from 6.38% in fiscal 2022 to 6.66% in
fiscal 2023 primarily due to an increase in cost of
short term money market borrowings and refinance
borrowings, offset, in part, by a decrease in cost of
bond borrowings. The cost of overseas borrowings
increased by 218 basis points from 1.11% in fiscal
2022 to 3.29% in fiscal 2023 primarily due to an
loans,
The Bank’s interest income, yield on advances, net interest
income and net interest margin are impacted by systemic
liquidity, the competitive environment, level of additions
to non-performing
regulatory developments,
monetary policy and economic and geopolitical factors.
Interest rates on about 49.9% of Bank’s domestic loans
are linked to external market benchmarks. The differential
movements in the external benchmark rates compared to
cost of funds of the Bank impact the Bank’s net interest
income and net interest margin in fiscal 2024.
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
Total interest-bearing liabilities
` in billion, except percentages
Fiscal 2022
` 7,716.34
2,744.51
1,518.66
11,979.51
9,433.39
1,044.80
` 10,478.20
Fiscal 2023
` 9,390.62
3,180.93
1,300.98
13,872.53
10,634.91
1,363.25
` 11,998.16
% change
21.7%
15.9
(14.3)
15.8
12.7
30.5
14.5%
1 Average investments and average borrowings include average short-term repurchase transactions.
2 All amounts have been rounded off to the nearest ` 10.0 million.
The average interest-earning assets increased by 15.8%
from ` 11,979.51 billion in fiscal 2022 to ` 13,872.53 billion
in fiscal 2023 due to an increase in average advances by
` 1,674.28 billion and average investments by ` 436.42
billion, offset, in part, by a decrease in average other
interest-earning assets by ` 217.68 billion.
Average advances increased by 21.7% from ` 7,716.34
billion in fiscal 2022 to ` 9,390.62 billion in fiscal 2023 due
to an increase of 23.0% in average domestic advances,
offset, in part, by a decrease of 1.7% in average overseas
advances.
Average interest-earning investments increased by 15.9%
from ` 2,744.51 billion in fiscal 2022 to ` 3,180.93 billion
in fiscal 2023 primarily due to an increase in average
investment in Indian government securities, offset, in
part, by a decrease in average investments in foreign
government securities.
interest-earning assets decreased by
Average other
14.3% from ` 1,518.66 billion in fiscal 2022 to ` 1,300.98
billion in fiscal 2023 primarily due to a decrease in call
money lent and Rural infrastructure development fund
(RIDF) and related deposits, offset, in part, by an increase
in balance with RBI.
Average interest-bearing liabilities increased by 14.5%
from ` 10,478.20 billion in fiscal 2022 to ` 11,998.16 billion
in fiscal 2023 primarily due to an increase in average
deposits by ` 1,201.52 billion and an increase in average
borrowings by ` 318.45 billion.
Average deposits increased by 12.7% from ` 9,433.39
billion in fiscal 2022 to ` 10,634.91 billion in fiscal 2023
due to an increase in average term deposits and average
CASA deposits.
Average borrowings increased by 30.5% from ` 1,044.80
billion in fiscal 2022 to ` 1,363.25 billion in fiscal 2023
primarily due to an increase in bond borrowings, term
money borrowings, refinance borrowings and repo
borrowings.
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FEE INCOME
Fee income primarily includes fees from retail customers
such as loan processing fees, fees from cards business,
account servicing charge, income from foreign exchange
transactions and third party referral fees and fees from
corporate clients includes loan processing fees, transaction
banking fees, income from foreign exchange transactions
and margin on derivative transactions.
Fee income increased by 14.8% from ` 156.87 billion in
fiscal 2022 to ` 180.01 billion in fiscal 2023 primarily due
to an increase in transaction banking fees, income from
foreign exchange and derivatives products and lending
linked fees, offset, in part, by a decrease in fee income from
third party product distribution. The fee income during the
first half of fiscal 2023 increased by 24.1% as compared
to the first half of fiscal 2022 primarily due to the lower
base effect resulting from the second-wave of Covid-19
pandemic.
DIVIDEND FROM SUBSIDIARIES/JOINT
VENTURES/ASSOCIATES
Dividend from Subsidiaries/joint ventures/associates
decreased by 2.5% from ` 18.29 billion in fiscal 2022 to
` 17.84 billion in fiscal 2023.
The following table sets forth, for the periods indicated, the details of dividend received from Subsidiaries/joint ventures/
associates:
Name of the entity
ICICI Bank Canada
ICICI Bank UK PLC
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Prudential Asset Management company Limited
ICICI Securities Limited
ICICI Securities Primary Dealership Limited
ICICI Home Finance Company Limited
ICICI Venture Funds Management Company Limited
India Infradebt Limited
ICICI Prudential Trust Limited
Total
1 0.00 represents insignificant amount.
2 All amounts have been rounded off to the nearest ` 10.0 million.
Fiscal 2022
` 0.88
-
1.48
1.89
6.14
5.98
1.81
-
-
0.11
0.00
` 18.29
` in billion
Fiscal 2023
` 1.06
0.80
0.40
2.24
6.22
5.44
1.36
0.16
0.05
0.11
0.00
` 17.84
Other income
Other income remained at a similar level at ` 0.98 billion in fiscal 2022 and fiscal 2023.
Operating expenses
The following table sets forth, for the periods indicated, the principal components of operating expenses.
Particulars
Payments to and provisions for employees
Other administrative expenses
Total operating expenses
1 All amounts have been rounded off to the nearest ` 10.0 million.
` in billion, except percentages
Fiscal 2022
` 96.73
170.60
` 267.33
Fiscal 2023
` 120.60
208.13
` 328.73
% change
24.7%
22.0
23.0%
Operating expenses primarily include employee expenses, depreciation on assets and other administrative expenses.
Operating expenses increased by 23.0% from ` 267.33 billion in fiscal 2022 to ` 328.73 billion in fiscal 2023.
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Annual Report 2022-23 MANAGEMENT DISCUSSION & ANALYSIS
Payments to and provisions for employees
Employee expenses increased by 24.7% from ` 96.73
billion in fiscal 2022 to ` 120.60 billion in fiscal 2023
primarily due to an increase in salary cost, provision for
retirement benefit obligations, provision for performance
bonus and performance-linked retention pay and fair
value accounting of employee stock options. Salary cost
increased primarily due to impact of annual increments,
promotions and an increase in average staff strength
(number of employees at March 31, 2022: 105,844 and
at March 31, 2023: 129,020). Provision for retirement
benefit obligations increased primarily due to impact of
change in assumptions for salary escalation and dearness
allowance.
The employee base includes sales executives, employees
on fixed term contracts and interns.
Other administrative expenses
Other administrative expenses primarily include rent, taxes
and lighting, advertisements, sales promotion, repairs and
maintenance, direct marketing expenses, depreciation,
premium paid towards priority sector lending certificates
and other expenditure. Other administrative expenses
increased by 22.0% from ` 170.60 billion in fiscal 2022 to
` 208.13 billion in fiscal 2023 primarily due to an increase
in technology related expenses, advertisement and
sales promotion expenses and direct marketing agency
expenses.
PROFIT/(LOSS) ON TREASURY-RELATED
ACTIVITIES (NET)
Gains from treasury-related activities include gains on
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.
Loss from treasury-related activities was ` 0.52 billion in
fiscal 2023 as compared to a gain of ` 9.03 billion in fiscal
2022.
PROVISIONS AND CONTINGENCIES (EXCLUDING PROVISIONS FOR TAX)
The following tables set forth, for the periods indicated, the components of provisions and contingencies.
Particulars
Provision for non-performing and other assets1
Provision for investments (including credit substitutes) (net)
Provision for standard assets
Others2
Total provisions and contingencies (excluding
provision for tax)
` in billion, except percentages
Fiscal 2022
` 61.64
3.77
4.49
16.51
Fiscal 2023
` (6.23)
13.00
5.80
54.09
% change
-
-
29.2
-
` 86.41
` 66.66
(22.9%)
1 Includes restructuring related provision.
2 Includes contingency provision amounting to ` 56.50 billion on a prudent basis for the year ended March 31, 2023 (March 31, 2022:
write-back of ` 0.25 billion).
3 All amounts have been rounded off to the nearest ` 10.0 million.
For a discussion on provisioning norms and policies, see
“Financial Statement (Schedule 17- Significant Accounting
Policies) – Provision/write-offs on loans and other credit
facilities”.
(excluding provisions
Provisions and contingencies
for tax) decreased from ` 86.41 billion in fiscal 2022 to
` 66.66 billion in fiscal 2023 primarily due to a decrease in
provision for non-performing and other assets, offset, in
part, by an increase in contingency provisions made on a
prudent basis, and provision for investments.
Provision for non-performing and other assets decreased
from a provision of ` 61.64 billion in fiscal 2022 to a
write-back of ` 6.23 billion in fiscal 2023. During fiscal
2023, there were higher recoveries and upgrades from
non-performing assets resulting in net write-back of
provision, offset, in part, by an increase in provisioning
rate for certain categories of non-performing assets. In
fiscal 2022, the provision for non- performing and other
assets also included provision on loans restructured under
Resolution Framework for COVID-19.
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The provision coverage ratio (excluding cumulative
technical/prudential write-offs) on NPAs increased
from 79.2% at March 31, 2022 to 82.8% at March 31,
2023.
Provision for investments increased from ` 3.77 billion in
fiscal 2022 to ` 13.00 billion in fiscal 2023 primarily due to
an increase in provision on debentures, equity shares and
security receipts.
Provision for standard assets increased from ` 4.49
billion in fiscal 2022 to ` 5.80 billion in fiscal 2023. The
cumulative general provision held at March 31, 2023 was
` 47.02 billion (March 31, 2022: ` 40.94 billion).
Other provisions and contingencies increased from ` 16.51
billion in fiscal 2022 to ` 54.09 billion in fiscal 2023. During
fiscal 2023, the Bank made a contingency provision
amounting to ` 56.50 billion (fiscal 2022: write-back of
` 0.25 billion), on a prudent basis, to further strengthen
the balance sheet. The Bank holds a total contingency
provision of ` 131.00 billion at March 31, 2023.
TAX EXPENSE
The income tax expense increased from ` 72.70 billion in
fiscal 2022 to ` 105.25 billion in fiscal 2023. The effective
tax rate increased from 23.7% in fiscal 2022 to 24.8%
in fiscal 2023 primarily due to change in composition of
income.
FINANCIAL CONDITION
Assets
The following table sets forth, at the dates indicated, the principal components of assets.
Assets
Cash and bank balances
Investments
- Government and other approved investments1
- Equity investment in subsidiaries
- Other investments
Advances (net of BRDS/IBPC)2
- Domestic
- Overseas branches
Fixed assets (including leased assets)
Other assets
- RIDF and other related deposits3
Total assets
` in billion, except percentages
At
March 31, 2022
At
March 31, 2023
% change
` 1,678.22
` 1,194.38
(28.8%)
3,102.41
2,563.78
67.13
471.50
8,590.20
8,177.36
412.84
93.74
648.41
264.19
3,623.30
3,057.69
69.78
495.83
10,196.38
9,855.28
341.10
96.00
732.01
216.22
` 14,112.98
` 15,842.07
16.8
19.3
3.9
5.2
18.7
20.5
(17.4)
2.4
12.9
(18.2)
12.3%
1 Banks in India are required to maintain a specified percentage, currently 18.00% (at March 31, 2023), of their net demand and time
liabilities by way of investments in instruments referred as SLR securities by RBI or liquid assets like cash and gold.
2 Bill Rediscounting Scheme (BRDS)/Interbank Participatory Certificate (IBPC).
3 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.
4 All amounts have been rounded off to the nearest ` 10.0 million.
Total assets of the Bank increased by 12.3% from ` 14,112.98 billion at March 31, 2022 to ` 15,842.07 billion at March 31,
2023, due to a 18.7% increase in advances and a 16.8% increase in investments, offset, in part, by a 28.8% decrease in
cash and cash equivalents.
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MANAGEMENT DISCUSSION & ANALYSIS
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
by 28.8% from ` 1,678.22 billion at March 31, 2022 to
` 1,194.38 billion at March 31, 2023 primarily due to a
decrease in short term lending to RBI and foreign currency
term money lent.
Investments
Total investments increased by 16.8% from ` 3,102.41
billion at March 31, 2022 to ` 3,623.30 billion at
March 31, 2023. Investments in Indian government
securities increased from ` 2,563.78 billion at March 31,
2022 to ` 3,057.69 billion at March 31, 2023. Other
investments increased from ` 538.63 billion at March 31,
2022 to ` 565.61 billion at March 31, 2023 primarily due
to an increase in investment in bonds and debentures and
pass through certificates, offset, in part, by a decrease in
investment in foreign government securities.
At March 31, 2023, the Bank had an outstanding net
investment of ` 2.11 billion in security receipts issued by
asset reconstruction companies as compared to ` 8.07
billion at March 31, 2022.
RBI through its circular dated December 8, 2022, extended
the dispensation of enhanced HTM limit of 23.0% of Net
Demand and Time Liabilities (NDTL) up to March 31, 2024.
The enhanced HTM limit of 23.0% shall be restored to
19.5% in a phased manner, beginning from the quarter
ending June 30, 2024.
Advances
Net advances (gross of BRDS/IBPC) increased by 20.2%
from ` 8,603.70 billion at March 31, 2022 to ` 10,345.09
billion at March 31, 2023. Net advances (net of BRDS/
IBPC) increased by 18.7% from ` 8,590.20 billion at
March 31, 2022 to ` 10,196.38 billion at March 31, 2023
primarily due to an increase in retail advances.
Net domestic advances
increased by 20.5% from
` 8,177.36 billion at March 31, 2022 to ` 9,855.28 billion at
March 31, 2023. Retail advances increased by 22.7% from
` 4,546.35 billion at March 31, 2022 to ` 5,578.17 billion at
March 31, 2023. Advances of rural business increased by
13.8% from ` 768.30 billion at March 31, 2022 to ` 874.31
billion at March 31, 2023. The business banking portfolio
increased by 34.9% from ` 534.37 billion at March 31,
2022 to ` 721.12 billion at March 31, 2023. SME advances
increased by 19.2% from ` 404.50 billion at March 31,
2022 to ` 482.21 billion at March 31, 2023. The domestic
corporate portfolio increased by 21.2% year-on-year.
Net advances of overseas branches decreased by 17.4%
from ` 412.84 billion at March 31, 2022 to ` 341.10 billion
at March 31, 2023.
Fixed and other assets
Fixed assets (net block) increased by 2.4% from ` 93.74
billion at March 31, 2022 to ` 96.00 billion at March 31,
2023.
Other assets increased by 12.9% from ` 648.41 billion
at March 31, 2022 to ` 732.01 billion at March 31, 2023
primarily due to an increase in mark-to-market on foreign
exchange and derivative transactions and
interest
accrued on loans and investments, offset, in part, by a
decrease in RIDF and related deposits. The Bank is an
active participant in the interest and foreign exchange
derivative market. While the positive mark-to-market on
such transactions are accounted in ‘Other Assets’, the
negative mark-to-market on offsetting transactions are
accounted in ‘Other Liabilities’.
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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)
- Domestic
- Overseas branches
Subordinated debt (included in Tier-1 and Tier-2 capital)
Other liabilities
Total liabilities
1 All amounts have been rounded off to the nearest ` 10.0 million.
` in billion, except percentages
At
March 31, 2022
At
March 31, 2023
` 16.56
1,688.56
10,645.72
3,599.57
1,584.80
5,461.35
933.80
614.59
319.21
138.51
689.83
` 21.58
1,985.58
11,808.41
3,797.76
1,614.86
6,395.79
1,110.44
852.30
258.14
82.81
833.25
` 14,112.98
` 15,842.07
% change
30.3%
17.6
10.9
5.5
1.9
17.1
18.9
38.7
(19.1)
(40.2)
20.8
12.3%
Total liabilities (including capital and reserves) increased
by 12.3% from ` 14,112.98 billion at March 31, 2022 to
` 15,842.07 billion at March 31, 2023, due to a 17.7%
increase in net worth, a 10.9% increase in deposits and a
20.8% increase in other liabilities.
Deposits
Deposits increased by 10.9% from ` 10,645.72 billion at
March 31, 2022 to ` 11,808.41 billion at March 31, 2023.
Term deposits increased by 17.1% from ` 5,461.35 billion
at March 31, 2022 to ` 6,395.79 billion at March 31,
2023. Savings account deposits increased by 5.5% from
` 3,599.57 billion at March 31, 2022 to ` 3,797.76 billion
at March 31, 2023 and current account deposits increased
by 1.9% from ` 1,584.80 billion at March 31, 2022 to
` 1,614.86 billion at March 31, 2023. CASA deposits
increased by 4.4% from ` 5,184.37 billion at March 31,
2022 to ` 5,412.62 billion at March 31, 2023.
The average current account deposits increased by 13.5%
from ` 1,167.28 billion in fiscal 2022 to ` 1,324.77 billion
in fiscal 2023. The average savings account deposits
increased by 13.3% from ` 3,031.58 billion in fiscal 2022
to ` 3,434.14 billion in fiscal 2023. Average CASA deposits
increased by 13.3% from ` 4,198.86 billion in fiscal 2022
to ` 4,758.90 billion in fiscal 2023. The average CASA
deposits were 44.7% of total average deposits for fiscal
2023 as compared to 44.5% for fiscal 2022. Average
CASA deposits were 39.7% of the total funding (i.e.,
deposits and borrowings) for fiscal 2023 as compared to
40.1% for fiscal 2022.
Deposits of overseas branches increased by 50.7% from
` 98.11 billion at March 31, 2022 to ` 147.82 billion at
March 31, 2023.
Total deposits remained at similar level at 90.8% of the
funding (i.e., deposits and borrowings) at March 31, 2023
and March 31, 2022.
Borrowings
Borrowings increased by 11.3% from ` 1,072.31 billion at
March 31, 2022 to ` 1,193.25 billion at March 31, 2023
primarily due to an increase in refinance borrowings
and bond borrowings, offset, in part, by a decrease
in subordinated debt, foreign currency term money
borrowings and foreign currency bond borrowings. Net
borrowings of overseas branches decreased from ` 319.21
billion at March 31, 2022 to ` 258.14 billion at March 31,
2023.
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Annual Report 2022-23
MANAGEMENT DISCUSSION & ANALYSIS
Other liabilities
Other liabilities increased by 20.8% from ` 689.83 billion
at March 31, 2022 to ` 833.25 billion at March 31, 2023
primarily due to an increase in mark-to-market on foreign
exchange and derivative transactions and contingency
provision. The Bank is an active participant in the interest
and foreign exchange derivative market. While the positive
mark-to-market on such transactions are accounted in
‘Other Assets’, the negative mark-to-market on offsetting
transactions are accounted in ‘Other Liabilities’.
Equity share capital and reserves
Equity share capital and reserves increased by 17.7% from
` 1,705.12 billion at March 31, 2022 to ` 2,007.16 billion at
March 31, 2023 primarily due to accretion to reserves out
of retained profit, offset, in part, by payment of dividend
for fiscal 2022.
At March 31, 2023, the Bank’s Tier-1 capital adequacy
ratio was 17.60% as against the requirement of 9.70%
and total capital adequacy ratio was 18.34% as against
the requirement of 11.70%.
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
1 All amounts have been rounded off to the nearest ` 10.0 million.
` in billion
At
March 31, 2022
At
March 31, 2023
` 82.84
0.01
10,645.24
1,037.75
462.81
498.34
` 81.96
0.01
15,330.22
1,238.18
441.91
564.63
25,912.44
25,089.18
37.33
85.57
` 38,676.76
` 42,831.66
The Bank enters into foreign exchange contracts in
its normal course of business, to exchange currencies
at a prefixed price at a future date. 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. The notional principal amount of
outstanding forward exchange contracts increased from
` 10,645.24 billion at March 31, 2022 to ` 15,330.22 billion
at March 31, 2023 primarily due to an increase in trading
and market making activities in forwards to facilitate client
flow and capture opportunities in the forward market.
The Bank is an active market participant in the interest rate
and foreign exchange derivative market for trading and
market making purposes, which are carried out primarily
for customer transactions and managing the proprietary
position on interest rate and foreign exchange risk. The
notional amount of interest rate swaps and currency
options decreased from ` 25,912.44 billion at March 31,
2022 to ` 25,089.18 billion at March 31, 2023.
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
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Integrated ReportStatutory ReportsFinancial Statements MANAGEMENT DISCUSSION & ANALYSIS
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
portfolio to any particular industry (other than retail loans)
to 15.0% of its total exposure. In addition, the Bank has a
framework for managing concentration risk with respect
to single borrower and group exposures, based on the
internal rating and track record of the borrowers. The
exposure limits for lower rated borrowers and groups are
substantially lower than the regulatory limits.
The following tables set forth, at the dates indicated, the composition of the Bank’s exposure.
Industry
March 31, 2022
March 31, 2023
` in billion, except percentages
Total exposure
% of total
exposure
Total exposure
% of total
exposure
Retail finance1
Services – finance
Rural retail
Banks
Wholesale/retail trade
Electronics and engineering
Crude petroleum/refining and petrochemicals
Services – non-finance
Road, ports, telecom, urban development and
other infrastructure
Power
Construction
Iron and steel (including iron and steel products)
Chemical and fertilisers
Automobiles
Manufacturing products (excluding metal and
metal products)
Textile
Metal and metal products (excluding iron and
steel)
Other industries2
Total
` 6,043.07
1,476.68
973.18
1,320.71
551.86
702.80
678.01
492.76
538.29
400.71
385.13
367.01
265.07
210.21
173.32
152.86
36.3%
8.9
5.8
7.9
3.3
4.2
4.1
3.0
3.2
2.4
2.3
2.2
1.6
1.3
1.0
0.9
` 7,751.65
1,766.80
1,250.80
1,208.52
819.20
804.99
764.57
668.24
609.28
477.22
471.72
446.44
382.83
261.26
250.49
220.59
38.3%
8.7
6.2
6.0
4.0
4.0
3.8
3.3
3.0
2.4
2.3
2.2
1.9
1.3
1.2
1.1
179.73
1,736.52
` 16,647.92
1.1
10.5
100.0%
203.47
1,886.74
` 20,244.81
1.0
9.3
100.0%
1 Includes home loans, automobile loans, commercial business loans, dealer financing, personal loans, credit cards and loans against
securities.
2 Other industries primarily include developer financing portfolio, gems and jewelry, mining, cement, food & beverages, mutual funds,
shipping, drugs and pharmaceuticals, asset reconstruction company, venture capital funds and FMCG.
3 All amounts have been rounded off to the nearest ` 10.0 million.
The exposure to the top 20 non-bank borrowers as a percentage of total exposure decreased from 9.6% of total exposure
of the Bank at March 31, 2022 to 8.5% at March 31, 2023. All top 20 borrowers as of March 31, 2023 are rated A+ and
above internally. The exposure to the top 10 borrower groups decreased from 10.3% of total exposure of the Bank at
March 31, 2022 to 10.1% at March 31, 2023.
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Annual Report 2022-23 MANAGEMENT DISCUSSION & ANALYSIS
The following table sets forth, at the dates indicated, the composition of the Bank’s outstanding net advances:
Particulars
Advances
- Domestic book
- Retail
- Rural
- Business banking
- SME
- Corporate and others
- Overseas book
March 31, 2022
March 31, 2023
` in billion
` 8,590.20
8,177.36
4,546.35
768.30
534.37
404.50
1,923.84
` 412.84
` 10,196.38
9,855.28
5,578.17
874.31
721.12
482.21
2,199.47
` 341.10
The Bank’s capital allocation framework is focused on growth in granular retail, SME/ business banking and rural lending
and lending to the corporate sector with a focus on increase in lending to higher rated corporates. Net retail advances
increased by 22.7% in fiscal 2023 compared to an increase of 18.7% in total advances. The share of net retail advances
increased from 52.9% of net advances at March 31, 2022 to 53.9% of net advances at March 31, 2023. Including non-
fund based outstanding, the share of retail portfolio was 45.7% of the total portfolio at March 31, 2023.
The overseas loan portfolio in USD terms declined by 23.8% year-on-year at March 31, 2023. The year-on-year decrease
in the overseas loan portfolio was primarily due to decline in the India-linked trade finance book. The overseas loan
portfolio was 3.3% of the overall loan book at March 31, 2023. The corporate fund and non-fund outstanding, net of
cash/bank/financial institutions/insurance backed lending, was USD 2.70 billion at March 31, 2023. Out of USD 2.70
billion, 88.7% of the outstanding was to Indian corporates and their subsidiaries and joint ventures and 7.4% of the
outstanding was to non-India companies with Indian or India-linked operations and activities. The portfolio in this
segment are primarily to well rated companies and the Indian operations of these companies are target customers for
the Bank’s deposit and transaction banking franchise. The Bank would continue to pursue risk-calibrated opportunities
in this segment. The non-India linked corporate portfolio reduced by 52.3% from about USD 641.2 million year-on-year
to USD 305.6 million at March 31, 2023.
The following table sets forth, at the dates indicated, the composition of the Bank’s net outstanding retail advances.
Home loans
Personal loans
Automobile loans
Commercial business
Credit cards
Others1
` in billion, except percentages
March 31, 2022
March 31, 2023
Total retail
advances
% of total
retail advances
Total retail
advances
% of total
retail advances
` 2,930.63
628.73
418.84
261.67
250.62
55.86
64.5%
13.8
9.2
5.8
5.5
1.2
` 3,446.96
880.55
518.78
275.41
378.41
78.06
61.8%
15.8
9.3
4.9
6.8
1.4
Total retail advances2
` 4,546.35
100.0%
` 5,578.17
100.0%
1 Includes loans against securities and dealer financing.
2 All amounts have been rounded off to the nearest ` 10.0 million.
131
Integrated ReportStatutory ReportsFinancial Statements
MANAGEMENT DISCUSSION & ANALYSIS
The following table sets forth, at the dates indicated, the composition of the Bank’s net outstanding rural advances:
Particulars
Farmer finance
Jewel loan
Rural business credit
Others1
Rural advances
March 31, 2022
March 31, 2023
` in billion
` 226.47
207.09
189.87
144.87
` 768.30
` 234.05
228.86
239.10
172.30
` 874.31
1 Includes term loans for farm equipment, self-help groups, loans to microfinance institutions for on-lending to individuals and inventory
funding.
The following table sets forth, at the dates indicated, the rating wise categorisation of the Bank’s net outstanding
advances other than retail and rural advances:
Ratings category1
AA- and above
A+, A, A-
A- and above
BBB+, BBB, BBB-
BB and below2
Unrated
Total
Total net advances3
` in billion, except percentages
March 31, 2023
46.9
26.6
73.5
24.3
1.2
1.0
100.0
` 3,826.41
March 31, 2022
36.1
35.7
71.8
24.5
2.9
0.8
100.0
` 3,275.55
1 Based on internal ratings.
2 Includes net non-performing loans.
3 Includes business banking, SME, domestic, corporate and overseas loans.
DIRECTED LENDING
The following table sets forth, for the periods indicated, ICICI Bank’s average priority sector lending:
Particulars
Fiscal 2022
Fiscal 2023
Amount
(` billions)
% of
adjusted net
bank credit
Amount
(` billions)
% of
adjusted net
bank credit
Target (% of
adjusted net
bank credit)
Agriculture Sector
` 1,226.50
17.8%
` 1,423.58
- Small and marginal farmers
- Non-corporate farmers
636.37
873.81
Micro, small and medium enterprises
1,473.72
- Micro enterprises
Other priority sector
Total priority sector lending
- Weaker sections
550.66
145.18
` 2,845.40
₹ 762.02
9.2%
12.7%
-
8.0%
-
41.3%
11.1%
794.72
1,068.17
1,729.04
661.21
178.32
` 3,330.94
` 910.20
1 The above includes the impact of Priority Sector Lending Certificate purchased/sold by the Bank.
17.7%
9.9%
13.3%
-
8.2%
-
41.5%
11.3%
18.0%
9.5%
13.8%
-
7.5%
-
40.0%
11.5%
There was a marginal shortfall in the achievement of target for lending to the agriculture sector.
132
Annual Report 2022-23
MANAGEMENT DISCUSSION & ANALYSIS
CLASSIFICATION OF LOANS
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, 2022
` in billion
March 31, 2023
` 85.32
181.48
72.40
` 339.20
` 68.79
127.00
116.05
` 311.84
1 Include advances, lease receivables and credit substitutes like debentures and bonds. Excludes preference shares.
2 All amounts have been rounded off to the nearest ` 10.0 million.
Year ended
The following table sets forth, at the dates indicated, information regarding the Bank’s non- performing assets (NPAs).
` in billion, except percentages
% of net NPA to net
customer assets2
1.41%
1.14
0.76
0.48%
Net customer
assets
`7,166.74
8,025.90
9,160.87
`10,816.41
March 31, 2020
March 31, 2021
March 31, 2022
March 31, 2023
`414.09
413.73
339.20
`311.84
`101.14
91.80
69.61
`51.55
Gross NPA1
Net NPA
1 Net of write-offs, interest suspense and derivatives income reversal.
2 Include advances, lease receivables and credit substitutes like debentures and bonds. Excludes preference shares.
3 All amounts have been rounded off to the nearest ` 10.0 million.
The following table sets forth, for the periods indicated, the composition of gross non-performing assets (net of write-
offs) by industry sector.
` in billion, except percentages
Particulars
March 31, 2022
March 31, 2023
Retail finance1
Construction
Rural retail
Crude petroleum/refining and petrochemicals
Power
Services – non-finance
Road, ports, telecom, urban development and
other infrastructure
Electronics and engineering
Mining
Wholesale/retail trade
Iron/steel and products
Manufacturing products
Gems and jewelry
Other industries2
Total
Amount
` 80.72
55.50
37.08
26.69
31.67
14.13
14.49
16.93
10.93
6.37
6.16
3.19
2.83
32.51
` 339.20
%
23.8%
16.4
10.9
7.9
9.3
4.2
4.3
5.0
3.2
1.9
1.8
0.9
0.8
9.6
100.0%
Amount
` 71.79
54.21
37.29
26.84
21.91
15.37
13.75
12.52
11.78
7.77
5.48
3.53
3.19
26.41
` 311.84
%
23.0%
17.4
12.0
8.6
7.0
4.9
4.4
4.0
3.8
2.5
1.8
1.1
1.0
8.5
100.0%
1 Includes home loans, automobile loans, commercial business loans, dealer financing, personal loans, credit cards and loans against
securities.
2 Other industries primarily include textile, metal and metal products, shipping, food and beverages, chemical and fertilizers, services-
finance, cement, drugs and pharmaceuticals, FMCG, automobiles and developer financing.
3 All amounts have been rounded off to the nearest ` 10.0 million.
133
Integrated ReportStatutory ReportsFinancial Statements
MANAGEMENT DISCUSSION & ANALYSIS
The gross additions to NPAs were ` 186.41 billion in fiscal
2023 (` 192.91 billion in fiscal 2022). The net additions to
NPAs were ` 20.38 billion in fiscal 2023 (` 29.28 billion in
fiscal 2022). In fiscal 2023, the Bank recovered/upgraded
non-performing assets amounting to ` 166.03 billion
(` 163.63 billion in fiscal 2022), wrote-off non-performing
assets amounting to ` 44.66 billion (` 99.46 billion in
fiscal 2022) and sold non-performing assets amounting
to ` 3.08 billion (` 4.35 billion in fiscal 2022). As a result,
gross NPAs (net of write-offs) of the Bank decreased from
` 339.20 billion at March 31, 2022 to ` 311.84 billion at
March 31, 2023.
Net NPAs decreased from ` 69.61 billion at March 31,
2022 to ` 51.55 billion at March 31, 2023. The ratio of net
NPAs to net customer assets decreased from 0.76% at
March 31, 2022 to 0.48% at March 31, 2023. The provision
coverage ratio at March 31, 2023 was 82.8% as compared
to 79.2% at March 31, 2022.
At March 31, 2023, gross non-performing loans in the
retail portfolio were 1.28% of gross retail loans compared
to 1.76% at March 31, 2022 and net non-performing
loans in the retail portfolio were 0.47% of net retail loans
compared to 0.74% at March 31, 2022.
The total non-fund based outstanding to borrowers
classified as non-performing was ` 37.80 billion at
March 31, 2023 (March 31, 2022: ` 36.40 billion). The
Bank held a provision of ` 20.05 billion at March 31, 2023
(March 31, 2022: ` 20.51 billion) against these non-fund
based outstanding.
The gross outstanding
loans to borrowers whose
facilities have been restructured decreased from ` 82.67
billion at March 31, 2022 to ` 45.08 billion at March 31,
2023. The net outstanding loans to borrowers whose
facilities have been restructured decreased from ` 79.84
billion at March 31, 2022 to ` 43.30 billion at March 31,
2023. The aggregate non-fund based outstanding to
borrowers whose loans were restructured was ` 3.32
billion at March 31, 2023 (March 31, 2022: ` 5.65 billion).
Additionally, Bank holds provision of ` 12.02 billion on
restructured accounts.
At March 31, 2023, the outstanding loans and non-fund
facilities to borrowers in the corporate and small and
medium enterprises portfolio rated BB and below were
` 47.04 billion which includes the outstanding loans and
non-funded facilities under resolution amounting to ` 7.74
billion.
For a discussion on accounting policy for classification on
loans, see “Financial Statement (Schedule 17- Significant
Accounting Policies) – Provision/write-offs on loans and
other credit facilities”.
SEGMENT INFORMATION
RBI in its guidelines on "segmental reporting” has stipulated
specified business segments and their definitions, for the
purpose of public disclosures on business information
for banks in India. The business segments as defined by
RBI for standalone segmental report are Retail Banking,
Wholesale Banking, Treasury and Other Banking.
Additionally, Unallocated includes items such as income
tax paid in advance net of provision for tax, deferred tax
and provisions to the extent reckoned at entity level.
Framework for transfer pricing
All liabilities are transfer priced to a central treasury unit,
which pools all funds and lends to the business units
at appropriate rates based on the relevant maturity of
assets being funded after adjusting for regulatory reserve
requirement and directed lending requirements.
Retail banking segment
The profit before tax of the segment increased from
` 114.00 billion in fiscal 2022 to ` 175.34 billion in fiscal
2023 primarily due to an increase in net interest income
and non-interest income and a decrease in provisions,
offset, in part, by an increase in operating expenses.
Wholesale banking segment
The profit before tax of the segment increased from
` 90.53 billion in fiscal 2022 to ` 157.85 billion in fiscal
2023 primarily due to an increase in net interest income
and non-interest income and a decrease in provisions,
offset, in part, by an increase in operating expenses.
Treasury segment
The profit before tax of the segment increased from
` 98.20 billion in fiscal 2022 to ` 142.72 billion in fiscal
2023 primarily due to an increase in net interest income,
offset, in part, by a decrease in non- interest income and
an increase in provisions and operating expenses.
Other banking segment
Profit before tax of the other banking segment increased
from ` 3.11 billion in fiscal 2022 to ` 4.80 billion in fiscal
2023.
134
Annual Report 2022-23 MANAGEMENT DISCUSSION & ANALYSIS
Unallocated
During fiscal 2023, the Bank on a prudent basis has made
an additional contingency provision of ` 56.50 billion as
compared to a write-back of ` 0.25 billion in fiscal year
2022. The contingency provision was not allocated to any
segment and included in unallocated.
CONSOLIDATED FINANCIALS AS PER
INDIAN GAAP
The consolidated profit after tax increased from ` 251.10
billion in fiscal 2022 to ` 340.37 billion in fiscal 2023
primarily due to an increase in the profit of ICICI Bank
and subsidiaries namely ICICI Home Finance Company,
ICICI Bank Canada, ICICI Prudential Asset Management
Company and ICICI Prudential Life Insurance Company
and an increase in share of profit from associate namely
ICICI Lombard General Insurance Company, offset, in part,
by a decrease in profit of certain subsidiaries namely ICICI
Securities and ICICI Securities Primary Dealership.
The consolidated assets of the Bank and its subsidiaries
and other consolidating entities
from
` 17,526.37 billion at March 31, 2022 to ` 19,584.90 billion
at March 31, 2023. Consolidated advances increased from
` 9,203.08 billion at March 31, 2022 to ` 10,838.66 billion
at March 31, 2023.
increased
At March 31, 2023, the Bank’s consolidated Tier-1 capital
adequacy ratio was 17.33% as against the requirement of
9.70% and consolidated total capital adequacy ratio was
18.09% as against the requirement of 11.70%.
ICICI Bank Canada
The core operating profit of ICICI Bank Canada increased
from CAD 26.2 million in fiscal 2022 to CAD 61.2 million
in fiscal 2023 primarily due to an increase in net interest
income and fee income, offset, in part, by an increase
in operating expenses. The profit after tax of ICICI Bank
Canada increased from CAD 29.2 million (` 1.74 billion)
in fiscal 2022 to CAD 46.4 million (` 2.82 billion) in fiscal
2023 primarily due to an increase in core operating profit.
The total assets increased from CAD 5.74 billion at
March 31, 2022 to CAD 5.98 billion at March 31, 2023.
Loans and advances increased from CAD 4.98 billion at
March 31, 2022 to CAD 5.17 billion at March 31, 2023. The
net impairment ratio increased from 0.01% at March 31,
2022 to 0.08% at March 31, 2023. ICICI Bank Canada had
a total capital adequacy ratio of 17.3% at March 31, 2023
as compared to 17.2% at March 31, 2022.
ICICI Bank UK PLC (ICICI Bank UK)
The core operating profit of ICICI Bank UK increased
from USD 11.7 million in fiscal 2022 to USD 18.3 million
in fiscal 2023 primarily due to an increase in net interest
income and fee income, offset, in part, by a decrease in
other income. Profit after tax of ICICI Bank UK increased
from USD 10.9 million (` 0.81 billion) in fiscal 2022 to USD
13.0 million (` 1.05 billion) in fiscal 2023 primarily due to
higher core operating profit, offset, in part, by an increase
in impairment provisions.
Total assets decreased from USD 2.24 billion at March 31,
2022 to USD 2.14 billion at March 31, 2023. Net advances
decreased from USD 1.32 billion at March 31, 2022 to
USD 1.09 billion at March 31, 2023. The net impairment
ratio increased from 2.0% at March 31, 2022 to 3.3%
at March 31, 2023. ICICI Bank UK had a total capital
adequacy ratio of 27.1% at March 31, 2023 compared to
23.0% at March 31, 2022.
ICICI Prudential Life Insurance Company (ICICI
Life)
The Annualised Premium Equivalent of ICICI Life increased
by 11.7% from ` 77.33 billion for fiscal 2022 to ` 86.40
billion for fiscal 2023. The Value of New Business (VNB)
increased by 27.8% from ` 21.63 billion for fiscal 2022 to
` 27.65 billion for fiscal 2023. The VNB margin increased
from 28.0% for fiscal 2022 to 32.0% in fiscal 2023. The
total premium earned increased by 6.6% from ` 374.58
billion in fiscal 2022 to ` 399.33 billion in fiscal 2023. The
total assets under management increased from ` 2,404.92
billion at March 31, 2022 to ` 2,511.91 billion at March 31,
2023.
Net premium earned increased by 6.2% from ` 363.21
billion in fiscal 2022 to ` 385.60 billion in fiscal 2023.
The profit after tax increased from ` 7.54 billion in fiscal
2022 to ` 8.11 billion in fiscal 2023 primarily due to lower
Covid-19 related death claims (net of reinsurance), offset,
in part, by a decrease in shareholder surplus.
ICICI Lombard General Insurance Company (ICICI
General)
The Gross Domestic Premium Income of ICICI General
increased by 17.0% year-on-year from ` 179.77 billion
135
Integrated ReportStatutory ReportsFinancial Statements MANAGEMENT DISCUSSION & ANALYSIS
in fiscal 2022 to ` 210.25 billion in fiscal 2023. The profit
after tax increased from ` 12.71 billion in fiscal 2022 to
` 17.29 billion in fiscal 2023 primarily due to an increase
in premium income and reversal of tax provision, offset, in
part, by an increase in claims and benefits paid.
ICICI Prudential Asset Management Company
(ICICI Prudential AMC)
As per Indian GAAP, the profit after tax of ICICI Prudential
AMC increased from ` 14.36 billion in fiscal 2022 to
` 15.08 billion in fiscal 2023 primarily due to an increase
in fee income, offset, in part, by an increase in operating
expenses.
ICICI Securities
As per Indian GAAP, the consolidated profit after tax of
ICICI Securities decreased from ` 13.98 billion in fiscal
2022 to ` 11.40 billion in fiscal 2023 primarily due to
decrease in fee income.
in fiscal 2023 primarily due to a decrease in net interest
income and lower trading gains.
ICICI Home Finance Company Limited (ICICI HFC)
As per Indian GAAP, profit after tax increased from ` 0.93
billion in fiscal 2022 to ` 3.65 billion in fiscal 2023 primarily
due to an increase in core operating profit and decrease
in provisions. The core operating profit increased primarily
due to an increase in net interest income and fee income,
offset, in part, by an increase in operating expenses.
Net NPAs decreased from ` 5.16 billion at March 31, 2022
to ` 3.53 billion at March 31, 2023.
ICICI Venture Funds Management Company
(ICICI Venture)
The profit after tax of ICICI Venture increased from
` 2.2 million in fiscal 2022 to ` 61.9 million in fiscal 2023
ICICI Securities Primary Dealership (I-Sec PD)
primarily due to an increase in management fees received
As per Indian GAAP, the profit after tax of I-Sec PD
decreased from ` 3.30 billion in fiscal 2022 to ` 1.28 billion
from launch of new fund, offset, in part, by an increase in
operating expenses.
The following table sets forth, for the periods and at the dates indicated, the profit/(loss) and total assets of our principal
subsidiaries/associates as per Indian GAAP.
` in billion
Company
Profit after tax
Total assets1
ICICI Bank Canada
ICICI Bank UK PLC
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited2,3
ICICI Prudential Asset Management Company Limited
ICICI Securities Limited (consolidated)
ICICI Securities Primary Dealership Limited
ICICI Home Finance Company Limited
ICICI Venture Funds Management Company Limited
Fiscal
2022
` 1.74
0.81
7.54
12.71
14.36
13.98
3.30
0.93
`0.004
Fiscal
2023
` 2.82
1.05
8.11
17.29
15.08
11.40
1.28
3.65
`0.06
At
March 31, 2022
` 348.35
170.77
2,441.54
508.48
21.48
135.20
202.30
157.58
` 2.84
At
March 31, 2023
` 363.46
176.13
2,558.47
550.86
24.89
154.71
344.01
187.01
` 3.02
1 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 The entity have been accounted as per the equity method as prescribed by Accounting Standard – 23 – “Accounting for Investments
in Associates in Consolidated Financial Statements”.
3 Total assets as per financial statements of ICICI Lombard General Insurance Company Limited.
4 0.00 represents insignificant amount.
5 See also “Financials- Statement pursuant to Section 129 of the Companies Act, 2013”.
6 All amounts have been rounded off to the nearest ` 10.0 million.
136
Annual Report 2022-23 KEY FINANCIAL INDICATORS: LAST 10 YEARS
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E
Integrated ReportStatutory ReportsFinancial Statements
INDEPENDENT AUDITOR’S REPORT
To the Members of
ICICI Bank Limited
Report on the Audit of the Standalone Financial Statements
Opinion
1.
2.
We have audited the accompanying standalone financial statements of ICICI Bank Limited (‘the Bank’), which
comprise the Standalone Balance Sheet as at 31 March 2023, the Standalone Profit and Loss Account, and
Standalone Cash Flow Statement for the year then ended, and notes to the standalone financial statements,
including a summary of significant accounting policies and other explanatory information (‘the standalone financial
statements’).
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 Banking Regulation Act, 1949 as well as the
Companies Act, 2013 (‘the Act’) and circulars and guidelines issued by the Reserve Bank of India (‘RBI’) from time to
time (‘RBI Guidelines’) in the manner so required for Banking companies and give a true and fair view in conformity
with the Accounting Standards prescribed under section 133 of the Act read with the Companies (Accounting
Standards) Rules, 2021 and other accounting principles generally accepted in India, of the state of affairs of the
Bank as at 31 March 2023, and its profit, and its cash flows for the year ended on that date.
Basis for Opinion
3.
We conducted our audit in accordance with the Standards on Auditing (‘SAs’) specified under section 143(10) of
the Act. Our responsibilities under those SAs 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 standalone 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
4.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
standalone financial statements of the current year. These matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
5. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter
How our audit addressed the Key Audit Matter
Identification and provisioning of non-performing advances (NPA):
Total Loans and Advances (Net of Provision) as at 31 March 2023: ` 10,196,383,053 (in ‘000s)
Provision for NPA as at 31 March 2023: ` 248,358,100 (in ‘000s)
(Refer Schedule 9, Schedule 17(3) and Schedule 18(17))
India’s
The Reserve Bank of
(“RBI”) guidelines
on Income recognition and asset classification &
Provisioning (“IRAC”) and other circulars and directives
issued by the RBI from time to time, which prescribe the
prudential norms for identification and
Our audit procedures with respect to this matter
included:
Tested the design and operating effectiveness of
key controls (including application controls) over
approval, recording, monitoring and recovery of loans,
138
Annual Report 2022-23 INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How our audit addressed the Key Audit Matter
classification of performing & non-performing assets
(“NPA”) and the minimum provision required for such
assets. The Bank is required to have Board approved
policy as per IRAC guidelines for NPA identification &
classification of advances and provision thereon.
The provision on NPA is estimated based on ageing
and classification of NPAs, recovery estimates, nature
of loan product, value of security and other qualitative
factors and is subject to the minimum provisioning
norms specified by RBI and approved policy of the
Bank in this regard.
The Bank is also required to apply its judgement to
determine the identification and provision required
against NPAs by applying quantitative as well as
qualitative factors. The risk of identification of NPAs is
affected by factors like stress and liquidity concerns in
certain sectors.
Additionally, the Bank makes provisions on exposures
that are not classified as NPA including advances
to certain sectors and identified advances or group
advances. These are classified as contingency
provisions.
Since the identification of NPAs and provisioning for
advances require significant level of estimation and
given its significance to the overall audit including
possible observation by RBI which could result into
disclosure
in the financial statements, we have
ascertained identification and provisioning for NPAs as
a key audit matter.
monitoring overdue / stressed accounts, identification
of NPA, provision for NPA and valuation of security and
collateral on a test check basis. Further obtained an
understanding of the contingency provision carried by
the Bank and verified the underlying assumptions used
by the Bank for such estimate.
Tested application controls included test of automated
controls, reports and system reconciliations.
Reviewed existence and effectiveness of monitoring
mechanisms such as Internal Audit, Systems Audit, and
Concurrent Audit as per the policies and procedures of
the Bank;
Evaluated the governance process and review controls
over calculations of provision of non-performing
advances, basis of provisioning in accordance with the
Board approved policy.
Selected a sample of borrowers based on quantitative
and qualitative risk factors for their assessment of
appropriate
identification & classification as NPA
including computation of overdue ageing to assess
its correct classification and provision amount as per
extant IRAC norms and the Bank policy.
Performed other substantive procedures included and
not limited to the following:
Selected samples of performing
loans and
assessed independently as to whether those
should be classified as NPA;
For samples selected, reviewed the collateral
valuations,
financial statements and other
qualitative information
Considered the accounts reported by the Bank
and other Banks as Special Mention Accounts
(“SMA”) in RBI’s Central Repository of Information
on Large Credits (CRILC) to identify stress.
For selected samples, assessed independently,
the accounts that can potentially be classified as
NPA and Red flagged accounts.
Inquired with the credit and risk departments to
ascertain if there were indicators of stress or an
occurrence of an event of default in a particular
loan account or any product category which
needed to be considered as NPA.
139
Integrated ReportStatutory ReportsFinancial Statements INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How our audit addressed the Key Audit Matter
Examined the accounts under watchlist report
provided by the risk department.
Discussed with the management of the Bank on
sectors where there is a perceived credit risk and
the steps taken to mitigate the risks to identified
sectors.
Selected and tested samples for accounts which
are restructured as per RBI Master Circular -
Prudential norms on Income Recognition, Asset
Classification and Provisioning pertaining to
Advances; and
Assessed appropriateness & the adequacy of
disclosures against
relevant accounting
the
standards and RBI requirements relating to NPAs.
Evaluation of Litigations included in contingent liabilities.
Particulars
Legal Cases
Taxes
(Included under contingent liabilities) (in ‘000)
As at
31 March 2023
As at
31 March 2022
3,027,295
3,201,365
78,935,723
79,637,364
Total Claims against Bank not acknowledged as Debt
81,963,017
82,838,729
(Refer Schedule 12 I, Schedule 17(12) and Schedule 18(36))
The Bank has material open tax litigations including
matters under dispute which
involve significant
judgement to determine the possible outcome of these
disputes.
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
determination of whether outflow in respect of
identified material matters are probable and can
be estimated reliably.
140
Our Audit procedures with respect to this matter
included:
Tested the design and operating effectiveness of the
Bank’s key controls over the estimation, monitoring
and disclosure of provisions and contingent liabilities
on test check basis.
Our substantive audit procedures included and were
not limited to the following:
Obtained an understanding of Bank’s process
for determining tax
liabilities, tax provisions
and contingent liabilities pertaining to legal and
taxation matters;
Obtained a list of cases /matters in respect of
which the litigations were outstanding as at
reporting date:
Annual Report 2022-23 INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How our audit addressed the Key Audit Matter
Adequacy of provisions: The appropriateness of
assumption and judgements used in estimation of
significant provisions; and
Adequacy of disclosures of provision for liabilities
and charges, and contingent liabilities.
The Bank’s assessment is supported by the facts of
matter, their own judgement, experience, and advises
from legal and independent tax consultants wherever
considered necessary.
Since the assessment of these open litigations requires
significant level of judgement in interpretation of law,
we have included this as a key audit matter.
•
•
For significant legal matters, we obtained
external confirmations and corroborated
with management’s documented conclusions
on the assessment of outstanding litigations
against the Bank;
For significant taxation matters, we involved
our tax specialists to gain an understanding
of status of
including
understanding of various orders/ notices
received by the Bank and management’s
grounds of appeals before the relevant
appellate authorities.
litigations
the
Evaluated the merit of the subject matter under
consideration with reference to the grounds
presented therein and available independent legal
/ tax advice;
Inquired with appropriate level of the management
including status update, expectation of outcomes
with the basis, and the future course of action
contemplated by the Bank;
Reviewed minutes of meetings with Board, and
Audit committee in this regard
Agreed underlying tax balances to supporting
documentation including correspondence with the
Tax authorities; and
Assessed
the appropriateness & adequacy
of disclosures within the standalone financial
statements in accordance with the applicable
accounting standards and requirements of RBI in
this regard.
141
Integrated ReportStatutory ReportsFinancial Statements
INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How our audit addressed the Key Audit Matter
Information Technology (‘IT’) systems and controls impacting financial controls.
The Bank has a complex IT architecture to support
its day-to-day business operations. High volume of
transactions is processed and recorded on single or
multiple applications.
The reliability and security of IT systems plays a key
role in the business operations of the Bank. Since
large volume of transactions are processed daily, the
IT controls are required to ensure that applications
process data as expected and that changes are made
in an appropriate manner.
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.
We have identified ‘IT systems and controls’ as 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
and its impact on the financial reporting system.
Our Audit procedures with respect to this matter
included:
For testing the IT general controls, application controls
and IT dependent manual controls, we involved IT
specialists as part of the audit. The team also assisted
in testing the accuracy of the information produced by
the Bank’s IT systems.
Obtained a comprehensive understanding of
IT
applications landscape implemented at the Bank. It
was followed by process understanding, mapping of
applications to the same and understanding financial
risks posed by people-process and technology.
Key IT audit procedures includes testing design and
operating effectiveness of key controls operating over
user access management (which includes user access
provisioning, de-provisioning, access review, password
configuration review, segregation of duties and privilege
access), change management (which include change
release in production environment are compliant to the
defined procedures and segregation of environment is
ensured), program development (which include review
of data migration activity), computer operations (which
includes testing of key controls pertaining to, backup,
Batch processing (including interface testing), incident
management and data centre security), System
interface controls. This included testing that requests
for access to systems were appropriately logged,
reviewed, and authorized.
In addition to the above, the design and operating
effectiveness of certain automated controls, that were
considered as key internal system controls over financial
reporting were tested. Using various techniques such
as inquiry, review of documentation / record / reports,
observation, and re-performance. We also tested few
controls using negative testing technique.
Tested compensating controls and performed alternate
procedures, where necessary. In addition, understood
where relevant changes made to the IT landscape
during the audit period.
142
Annual Report 2022-23 INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How our audit addressed the Key Audit Matter
Valuation of Derivatives
Particulars
Notional amounts
(Refer Schedule 12.III, 12.VI, 12.VII and 18(14))
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,
valuation 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.
(Included under contingent liabilities) (in ‘000)
As at
31 March 2023
As at
31 March 2022
40,984,024,707
37,056,016,613
Our audit procedures included, but were not limited to,
the following:
We obtained an understanding, evaluated the design,
and tested 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, we performed an independent
reassessment of the valuation of derivatives and
evaluated significant models and methodologies used
in valuation, to ensure compliance with the relevant
RBI regulations, reasonableness of the valuation
methodology and the inputs used.
Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
6.
The Bank’s Board of Directors are responsible for the other information. The other information comprises the
information included in the Annual Report but does not include the standalone financial statements and our auditor’s
report thereon. The Annual Report is expected to be made available to us after the date of this auditor’s report.
Our opinion on the standalone financial statements does not cover the other information and we will 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
identified above when it becomes available and, in doing so, consider whether the other information is materially
inconsistent with the standalone financial statements, or knowledge obtained in the audit, or otherwise appears to
be materially misstated.
143
Integrated ReportStatutory ReportsFinancial Statements
INDEPENDENT AUDITOR’S REPORT (Contd.)
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance and take appropriate action as applicable under the
relevant laws and regulations.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial
Statements
7.
The Bank’s Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to
the preparation and presentation 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 accounting principles
generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with the
Companies (Accounting Standards) Rules, 2021, and provisions of Section 29 of the Banking Regulation Act, 1949
and circulars and guidelines issued by the RBI from time to time (‘RBI Guidelines’). This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act and the RBI Guidelines 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 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 standalone financial statement that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
8.
In preparing the standalone financial statements, Board of Directors are 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 the Board of Directors either intend to liquidate the Bank or to cease operations,
or has no realistic alternative but to do so.
9. The Board of Directors are also responsible for overseeing the Bank’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
10. Our objectives are to obtain reasonable assurance about whether the standalone 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 SAs 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 standalone financial statements.
11. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
•
•
Identify and assess the risks of material misstatement of the standalone 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 expressing our
opinion on whether the Bank has adequate internal financial controls with reference to standalone financial
statements in place and the operating effectiveness of such controls;
144
Annual Report 2022-23
INDEPENDENT AUDITOR’S REPORT (Contd.)
•
•
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the Management;
Conclude on the appropriateness of the 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
standalone 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 standalone financial statements, including
the disclosures, and whether the standalone1 financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
12. 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.
13. 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.
14. From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the standalone financial statements of the current year, 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.
Report on Other Legal and Regulatory Requirements
15. 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 and the relevant rules issued thereunder.
16. 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.
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. We have visited 156 branches to examine the records maintained at the branches
for the purpose of our audit.
17. As required by Section 143(3) of the Act, we report that:
a.
b.
c.
We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes 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;
The Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this Report are in
agreement with the books of account;
145
Integrated ReportStatutory ReportsFinancial Statements
INDEPENDENT AUDITOR’S REPORT (Contd.)
d.
e.
f.
g.
In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified
under Section 133 of the Act read with relevant rules issued thereunder, to the extent they are not inconsistent
with the accounting policies prescribed by the RBI;
On the basis of the written representations received from the directors as on 31 March 2023 taken on record
by the Board of Directors, none of the directors are disqualified as on 31 March 2023 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 with reference to standalone financial statements
of the Bank 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.
The Bank has disclosed the impact of pending litigations on its financial position in its standalone financial
statements (Refer Schedule 12, Schedule 17(12) and Schedule 18(41));
The Bank has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts ((Refer Schedule 17(12)
and Schedule 18(41));
iii.
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 2023;
iv.
(1)
The Management has represented that, to the best of its knowledge and belief, as disclosed in
schedule 18(57) to the standalone financial statements, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Bank to or in any other person(s) or entity(ies), including foreign entities (‘Intermediaries’), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether directly
or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Bank (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries;
(2)
The Management has represented that, to the best of it’s knowledge and belief, as disclosed in
schedule 18(57) to the standalone financial statements, no funds have been received by the Bank
from any person(s)/entity(ies), including foreign entities (“Funding Parties”), that the Bank has directly
or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and
(3)
Based on such audit procedures performed, as considered reasonable and appropriate in the
circumstances, nothing has come to our attention that causes us to believe that the management
representations under sub-clauses (1) and (2) above contain any material misstatement.
v.
vi.
The Bank has declared and paid dividend during the year which is in compliance with section 123 of the
Act and the Banking Regulation Act, 1949.
As the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 (as amended), which provides for
the accounting software used by the Bank for maintaining its books of account to have the feature for
recording of audit trail (edit log) facility and related matters, is applicable for the Bank only with effect from
financial year beginning 1 April 2023, the reporting under clause (g) of Rule 11 is currently not applicable.
146
Annual Report 2022-23
INDEPENDENT AUDITOR’S REPORT (Contd.)
h.
With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of
Section 197(16) of the Act, as amended, the Bank is a banking Company as defined under Banking Regulation
Act, 1949. Accordingly, the requirements prescribed under Section 197 of the Act do not apply.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No.105047W
For KKC & Associates LLP
Chartered Accountants
(Formerly Khimji Kunverji & Co LLP)
ICAI Firm Registration No.105146W/W100621
Tushar Kurani
Partner
Membership Number.: 118580
UDIN: 23118580BGXROY2671
Place: Mumbai
Date: 22 April 2023
Gautam Shah
Partner
Membership Number.: 117348
UDIN: 23117348BGSZHO1617
Place: Mumbai
Date: 22 April 2023
147
Integrated ReportStatutory ReportsFinancial Statements
Annexure "A" to the Independent Auditor’s report on the Standalone Financial
Statements of ICICI Bank Limited for the year ended 31 March 2023
[Referred to in paragraph “17(f)” under ‘Report on Other Legal and Regulatory Requirements’ section of our report of
even date]
Report on the Internal Financial Controls with reference to the aforesaid Standalone Financial
Statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013.
Opinion
1.
2.
We have audited the internal financial controls with reference to standalone financial statements of ICICI Bank
Limited (“the Bank”) as at 31 March 2023 in conjunction with our audit of the standalone financial statements of the
Bank for the year ended on that date.
In our opinion, the Bank has, in all material respects, an adequate internal financial controls with reference to
standalone financial statements and such internal financial controls with reference to standalone financial statements
were operating effectively as at 31 March 2023, based on the internal control with reference to standalone financial
statements 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 (ICAI) (the “Guidance Note”).
Management’s Responsibility for Internal Financial Controls
3.
The Bank’s Management is responsible for establishing and maintaining internal financial controls based on the
internal control with reference to standalone financial statements criteria established by the Bank considering the
essential components of internal control stated in the Guidance Note. 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 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.
Auditors’ Responsibility
4.
5.
Our responsibility is to express an opinion on the Bank’s internal financial controls with reference to standalone
financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the
Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent
applicable to an audit of internal financial controls. 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
internal financial controls with reference to standalone financial statements was 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 internal financial controls
with reference to standalone financial statements and their operating effectiveness. Our audit of internal financial
controls with reference to standalone financial statements included obtaining an understanding of internal financial
controls with reference to standalone financial statements, 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 standalone financial statements, whether due to fraud or error.
6.
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 internal financial controls with reference to standalone financial statements.
Meaning of Internal Financial Controls with Reference to Standalone Financial Statements
7.
Bank’s internal financial control with reference to standalone financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial
statements for external purposes in accordance with generally accepted accounting principles. A Bank’s internal
financial control with reference to standalone financial statements includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
148
Annual Report 2022-23 Annexure A (Contd.)
dispositions of the assets of the bank; (2) provide reasonable assurance that transactions are recorded as necessary
to permit preparation of standalone financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the bank are being made only in accordance with authorizations
of management and directors of the bank; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the bank’s assets that could have a material effect on
the standalone financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Standalone Financial Statements
8.
Because of the inherent limitations of internal financial controls with reference to standalone financial statements,
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 internal financial controls
with reference to standalone financial statements to future periods are subject to the risk that the internal financial
control with reference to standalone financial statements may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No.105047W
For KKC & Associates LLP
Chartered Accountants
(Formerly Khimji Kunverji & Co LLP)
ICAI Firm Registration No.105146W/W100621
Tushar Kurani
Partner
Membership Number.: 118580
UDIN: 23118580BGXROY2671
Place: Mumbai
Date: 22 April 2023
Gautam Shah
Partner
Membership Number.: 117348
UDIN: 23117348BGSZHO1617
Place: Mumbai
Date: 22 April 2023
149
Integrated ReportStatutory ReportsFinancial Statements FINANCIAL STATEMENTS OF ICICI BANK LIMITED
BALANCE SHEET
at March 31, 2023
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
Schedule
At
31.03.2023
` in ‘000s
At
31.03.2022
1
1A
2
3
4
5
6
7
8
9
10
11
13,967,750
13,899,662
7,608,859
2,664,141
1,985,577,170
1,688,555,941
11,808,406,972
10,645,716,132
1,193,254,936
1,072,313,597
833,250,836
689,827,947
15,842,066,523
14,112,977,420
685,261,721
1,095,228,198
509,121,002
582,995,434
3,623,297,355
3,102,410,024
10,196,383,053
8,590,204,390
95,998,412
93,738,159
732,004,980
648,401,215
15,842,066,523
14,112,977,420
12
42,831,654,487
38,676,758,717
864,547,740
751,508,328
Significant accounting policies and notes to accounts
17 & 18
The Schedules referred to above form an integral part of the Standalone Balance Sheet.
As per our Report of even date.
For and on behalf of the Board of Directors
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration no.: 105047W
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
Tushar Kurani
Partner
Membership no.: 118580
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Gautam Shah
Partner
Membership no.: 117348
Mumbai
April 22, 2023
150
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITED
PROFIT AND LOSS ACCOUNT
for the year ended March 31, 2023
I.
INCOME
Interest earned
Other income
TOTAL INCOME
II. EXPENDITURE
Interest expended
Operating expenses
Provisions and contingencies (refer note 18.41)
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/(from) 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
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
31.03.2023
` in ‘000s
Year ended
31.03.2022
13
14
15
16
17 & 18
1,092,313,380
198,314,479
1,290,627,859
863,745,452
185,175,299
1,048,920,751
471,027,360
328,732,391
171,903,146
971,662,897
389,084,507
267,333,160
159,108,177
815,525,844
318,964,962
436,713,394
755,678,356
233,394,907
310,090,657
543,485,564
79,742,000
-
878,200
-
-
1,043,810
50,000,000
25,650,000
34,794,463
563,569,883
755,678,356
58,349,000
-
15,742,037
-
-
3,828,798
-
15,000,000
13,852,335
436,713,394
543,485,564
45.79
44.89
2.00
33.66
32.98
2.00
The Schedules referred to above form an integral part of the Standalone Profit and Loss Account.
As per our Report of even date.
For and on behalf of the Board of Directors
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration no.:105047W
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Tushar Kurani
Partner
Membership no.: 118580
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Gautam Shah
Partner
Membership no.: 117348
Mumbai
April 22, 2023
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
151
Integrated ReportStatutory ReportsFinancial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CASH FLOW STATEMENT
for the year ended March 31, 2023
Cash flow from/(used in) operating activities
Profit/(loss) before taxes
Adjustments for:
Depreciation and amortisation
Net (appreciation)/depreciation on investments
Provision in respect of non-performing and other assets
General provision for standard assets
Provision for contingencies & others
Employee Stock Options Expense
Income from subsidiaries and consolidated entities
(Profit)/loss on sale of fixed assets
Year ended
31.03.2023
` in ‘000s
Year ended
31.03.2022
424,212,254
306,088,853
14,551,663
13,162,116
25,947,137
19,089,256
(6,222,899)
61,640,412
5,795,607
4,492,475
54,087,695
16,510,217
5,172,383
2,642,190
(17,845,592)
(18,287,906)
(534,906)
(40,400)
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 (including
application money)
(i)
505,163,342
405,297,213
118,142,776
44,311,642
(1,606,959,156)
(1,314,758,223)
1,162,749,545
1,320,494,527
(87,974,398)
50,727,916
82,944,583
81,334,402
(331,096,650)
182,110,264
(97,163,542)
(36,938,226)
76,903,150
550,469,251
(ii)
(iii)
(A)
(5,299,820)
28,153,800
Income from subsidiaries, joint ventures and consolidated entities
17,845,592
18,287,906
Purchase of fixed assets
Proceeds from sale of fixed assets
(Purchase)/sale of held-to-maturity securities
(20,200,892)
(16,109,856)
2,815,987
208,665
(652,674,032)
(380,894,998)
Net cash flow from/(used in) investing activities
(B)
(657,513,165)
(350,354,483)
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 paid
152
9,420,691
7,979,764
329,872,556
252,601,665
(183,073,266)
(233,144,678)
(27,161,726)
135,095,945
(34,794,463)
(13,852,335)
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CASH FLOW STATEMENT
for the year ended March 31, 2023 (Contd.)
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
Year ended
31.03.2023
` in ‘000s
Year ended
31.03.2022
(C)
(D)
94,263,792
148,680,361
2,505,314
(1,853,998)
(483,840,909)
346,941,131
1,678,223,632
1,331,282,501
1,194,382,723
1,678,223,632
1. 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 M S K A & Associates
Chartered Accountants
ICAI Firm Registration no.:105047W
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
Tushar Kurani
Partner
Membership no.: 118580
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Gautam Shah
Partner
Membership no.: 117348
Mumbai
April 22, 2023
153
Integrated ReportStatutory ReportsFinancial Statements FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet
SCHEDULE 1 - CAPITAL
Authorised capital
12,500,000,000 equity shares of ` 2 each
(March 31, 2022: 12,500,000,000 equity shares of ` 2 each)
Equity share capital
Issued, subscribed and paid-up capital
6,948,771,375 equity shares of ` 2 each
(March 31, 2022: 6,915,992,387 equity shares)
Add: 34,044,356 equity shares of ` 2 each (March 31, 2022: 32,778,988
equity shares) issued during the year
Add: Forfeited equity shares1
TOTAL CAPITAL
1. On account of forfeiture of 266,089 equity shares of ` 10 each.
SCHEDULE 1A - EMPLOYEES STOCK OPTIONS OUTSTANDING
Opening balance
Additions during the year1
Deductions during the year2
Closing balance
At
31.03.2023
` in ‘000s
At
31.03.2022
25,000,000
25,000,000
13,897,543
13,831,985
68,088
65,558
13,965,631
13,897,543
2,119
2,119
13,967,750
13,899,662
At
31.03.2023
2,664,141
5,172,383
(227,665)
7,608,859
` in ‘000s
At
31.03.2022
31,010
2,642,190
(9,059)
2,664,141
1. Represents cost of stock options recongnised during the year.
2. Represents amount transferred to Securities Premium on account of exercise of employee stock options and to General Reserve on
lapses of employee stock options during the year.
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 year
Closing balance
154
At
31.03.2023
356,036,519
79,742,000
-
435,778,519
128,840,000
25,650,000
-
154,490,000
496,253,897
9,576,331
-
505,830,228
` in ‘000s
At
31.03.2022
297,687,519
58,349,000
-
356,036,519
113,840,000
15,000,000
-
128,840,000
488,330,632
7,923,265
-
496,253,897
Annual Report 2022-23
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
IV.
Investment reserve account
Opening balance
Additions during the year
Deductions during the year
Closing balance
V.
Investment fluctuation reserve2
Opening balance
Additions during the year
Deductions during the year
Closing balance
VI. Capital reserve
Opening balance
Additions during the year3,4
Deductions during the year
Closing balance
VII. Capital redemption reserve
Opening balance
Additions during the year
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
Opening balance
Additions during the year5
Deductions during the year6
Closing balance
X. Revenue and other reserves
Opening balance
Additions during the year7
Deductions during the year
Closing balance
XI. Balance in profit and loss account4
TOTAL RESERVES AND SURPLUS
At
31.03.2023
` in ‘000s
At
31.03.2022
-
-
-
-
20,714,999
1,043,810
-
21,758,809
149,540,462
878,200
-
150,418,662
3,500,000
-
-
3,500,000
7,732,961
2,505,314
-
10,238,275
31,956,593
839,516
(2,171,483)
30,624,626
-
-
-
-
16,886,201
3,828,798
-
20,714,999
133,798,425
15,742,037
-
149,540,462
3,500,000
-
-
3,500,000
9,586,959
-
(1,853,998)
7,732,961
30,935,908
1,724,938
(704,253)
31,956,593
57,267,116
52,101,052
-
109,368,168
563,569,883
1,985,577,170
56,570,435
696,681
-
57,267,116
436,713,394
1,688,555,941
1. Includes amount on account of exercise of employee stock options.
2. Represents amount transferred to Investment Fluctuation Reserve (IFR) on net profit on sale of AFS and HFT investments during the
period. The amount not less than the lower of net profit on sale of AFS and HFT category investments during the period or net profit
for the period 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.
3. 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.
4. The Bank had shifted certain securities from held-to-maturity category to available-for-sale category on May 3, 2017. RBI through its
order dated May 3, 2021 directed the Bank to appropriate the net profit made on sale of these investments during FY2018 to capital
reserve. Accordingly, an amount of ` 15,091.1 million was transferred from balance in Profit and Loss account to capital reserve
during FY2022.
5. Represents gain on revaluation of premises carried out by the Bank.
6. Includes amount transferred from revaluation reserve to general reserve on account of incremental depreciation charge on revaluation
and revaluation surplus on premises sold. Also includes the amount of loss on revaluation of certain assets which were held for sale.
7. Includes amount transferred from Employee Stock Options outstanding to general reserve on lapses of employee stock options during
the period.
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FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
SCHEDULE 3 - DEPOSITS
A.
I. Demand deposits
i)
ii)
From banks
From others
II. Savings bank deposits
III. Term deposits
i)
ii)
From banks
From others
TOTAL DEPOSITS
B.
I. Deposits of branches in India
II. Deposits of branches outside India
TOTAL CAPITAL
SCHEDULE 4 - BORROWINGS
I. Borrowings in India
i)
Reserve Bank of India1
ii) Other banks
iii) Financial institutions2
iv)
Borrowings in the form of bonds and debentures
(excluding subordinated debt)
v) Capital instruments
a)
b)
Innovative Perpetual Debt Instruments (IPDI)
(qualifying as additional Tier 1 capital)
Unsecured redeemable debentures/bonds
(subordinated debt included in Tier 2 capital)
TOTAL BORROWINGS IN INDIA
II. Borrowings outside India
i)
Bonds and notes
ii) Other borrowings
TOTAL BORROWINGS OUTSIDE INDIA
TOTAL BORROWINGS
At
31.03.2023
` in ‘000s
At
31.03.2022
49,917,686
79,700,410
1,564,941,951
1,505,096,359
3,797,758,853
3,599,568,969
113,475,314
71,532,495
6,282,313,168
5,389,817,899
11,808,406,972
10,645,716,132
11,660,582,193
10,547,609,016
147,824,779
98,107,116
11,808,406,972
10,645,716,132
At
31.03.2023
` in ‘000s
At
31.03.2022
-
-
-
-
355,946,900
187,168,771
460,418,579
391,495,007
51,400,000
66,950,000
31,409,320
71,556,981
899,174,799
717,170,759
131,367,581
170,411,911
162,712,556
184,730,927
294,080,137
355,142,838
1,193,254,936
1,072,313,597
1. Represents borrowings made under Liquidity Adjustment Facility (LAF).
2. Includes borrowings made under repo and refinance.
3. Secured borrowings in I and II above amount to Nil (March 31, 2022: Nil) except no borrowing (March 31, 2022: ` 4,913.3 million) was
made under market repurchase transactions (including tri-party repo) with banks and financial institutions and transactions under
liquidity adjustment facility and marginal standing facility.
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FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
I.
II.
Bills payable
Inter-office adjustments (net)
III.
Interest accrued
IV. Sundry creditors
V. General provision for standard assets (refer note 18.19)
VI. Unrealised loss on foreign exchange and derivative contracts1
VII. Others (including provisions)2
TOTAL OTHER LIABILITIES AND PROVISIONS
At
31.03.2023
134,783,012
3,228,016
30,423,631
167,703,280
47,022,362
178,698,973
271,391,562
833,250,836
` in ‘000s
At
31.03.2022
129,495,726
4,418,106
24,632,882
144,731,299
40,942,883
110,510,788
235,096,263
689,827,947
1. Gross unrealised gain on foreign exchange and derivative contracts is disclosed under Schedule 11 - Other assets.
2. Includes contingency provision amounting to ` 131,000.0 million (March 31, 2022: ` 74,500.0 million) and specific provision for
standard loans amounting to ` 14,946.9 million (March 31, 2022: ` 30,203.0 million).
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
(a) in current account
(b) in other accounts1
TOTAL CASH AND BALANCES WITH RESERVE BANK OF INDIA
At
31.03.2023
` in ‘000s
At
31.03.2022
85,594,376
71,208,342
480,247,345
119,420,000
685,261,721
529,999,856
494,020,000
1,095,228,198
1. Represents lending under Liquidity Adjustment Facility (LAF) and Standing Deposit Facility (SDF).
SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND
SHORT NOTICE
In India
I.
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 institutions1
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
1. Includes lending under reverse repo.
At
31.03.2023
` in ‘000s
At
31.03.2022
1,161,580
39,768,173
8,217,000
6,000,000
55,146,753
283,001,318
26,708,047
144,264,884
453,974,249
509,121,002
324,146
5,321,404
-
-
5,645,550
302,607,893
179,630,804
95,111,187
577,349,884
582,995,434
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FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
SCHEDULE 8 - INVESTMENTS
I.
Investments in India [net of provisions]
i) Government securities
ii) Other approved securities
At
31.03.2023
` in ‘000s
At
31.03.2022
3,057,772,845
2,563,877,338
-
-
iii) Shares (includes equity and preference shares)
21,711,915
24,135,943
iv)
Debentures and bonds (including commercial paper and certificate
of deposits)
v) Subsidiaries and/or joint ventures
vi)
Others (mutual fund units, pass through certificates, security
receipts, and other related investments)
TOTAL INVESTMENTS IN INDIA
II.
Investments outside India [net of provisions]
i) Government securities
ii)
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
A.
Investments in India
Gross value of investments
288,094,031
225,803,491
68,914,088
66,264,177
105,787,007
71,922,592
3,542,279,886
2,952,003,541
42,389,373
107,340,857
19,698,901
18,929,195
19,698,901
23,366,725
81,017,469
150,406,483
3,623,297,355
3,102,410,024
3,599,811,662
3,002,256,404
Less: Aggregate of provision/depreciation/(appreciation)
57,531,776
50,252,863
Net investments
B.
Investments outside India
Gross value of investments
Less: Aggregate of provision/depreciation/(appreciation)
Net investments
TOTAL INVESTMENTS
3,542,279,886
2,952,003,541
85,062,773
151,569,301
4,045,304
1,162,818
81,017,469
150,406,483
3,623,297,355
3,102,410,024
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FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
SCHEDULE 9 - ADVANCES [net of provisions]
A.
i)
Bills purchased and discounted1
At
31.03.2023
` in ‘000s
At
31.03.2022
495,756,534
475,480,187
ii) Cash credits, overdrafts and loans repayable on demand
2,799,818,550
2,279,069,891
iii) Term loans
TOTAL ADVANCES
6,900,807,969
5,835,654,312
10,196,383,053
8,590,204,390
B.
i)
Secured by tangible assets (includes advances against book debts)
7,123,779,285
6,136,277,576
ii) Covered by bank/government guarantees
iii) Unsecured
TOTAL ADVANCES
C.
I. Advances in India
i)
Priority sector
ii) Public sector
iii) Banks
iv) Others
TOTAL ADVANCES IN INDIA
II. Advances outside India
i) Due from banks
ii) Due from others
a) Bills purchased and discounted
b) Syndicated and term loans
c) Others
TOTAL ADVANCES OUTSIDE INDIA
TOTAL ADVANCES
1. Net of bills re-discounted amounting to ` 10,000.0 million (March 31, 2022: Nil).
153,940,219
178,653,112
2,918,663,549
2,275,273,702
10,196,383,053
8,590,204,390
2,807,812,582
2,491,680,887
516,152,443
483,782,406
7,698,171
432,346
6,523,615,093
5,201,460,769
9,855,278,289
8,177,356,408
-
-
151,133,779
173,178,388
101,434,591
85,793,092
88,536,394
153,876,502
341,104,764
412,847,982
10,196,383,053
8,590,204,390
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FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
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
Depreciation
At March 31 of preceding year
Charge during the year2
Deductions during the year
Total depreciation
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
Depreciation
At March 31 of preceding year
Charge during the year
Deductions during the year
Total depreciation
Net block
III. Lease assets
Gross block
At cost at March 31 of preceding year
Additions during the year
Deductions during the year
Closing balance4
Depreciation
At March 31 of preceding year
Charge during the year
Deductions during the year
Total depreciation, accumulated lease adjustment and provisions
Net block
TOTAL FIXED ASSETS
At
31.03.2023
` in ‘000s
At
31.03.2022
81,486,941
2,401,505
(2,664,056)
81,224,390
20,180,009
2,154,851
(447,084)
21,887,776
59,336,614
88,772,438
15,409,102
(5,758,596)
98,422,944
59,595,871
10,893,499
(5,661,468)
64,827,902
33,595,042
17,890,746
11,660
-
17,902,406
14,636,086
199,564
-
14,835,650
3,066,756
95,998,412
78,890,743
2,993,921
(397,723)
81,486,941
18,421,307
2,038,226
(279,524)
20,180,009
61,306,932
78,861,437
13,724,162
(3,813,161)
88,772,438
53,842,117
9,484,874
(3,731,120)
59,595,871
29,176,567
17,735,222
155,524
-
17,890,746
14,448,172
187,914
-
14,636,086
3,254,660
93,738,159
1. Includes revaluation gain amounting to ` 839.5 million (March 31, 2022: ` 1,724.9 million) on account of revaluation carried out by the
Bank.
2. Includes depreciation charge on account of revaluation amounting to ` 748.4 million for the year ended March 31, 2023 (year ended
March 31, 2022: ` 696.7 million).
3. Includes assets amounting to ` 428.8 million (March 31, 2022: ` 558.5 million) which are held for sale.
4. Includes assets taken on lease amounting to ` 1,187.8 million (March 31, 2022: ` 1,176.1 million).
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FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
SCHEDULE 11 - OTHER ASSETS
I.
II.
Inter-office adjustments (net)
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 18.43)
At
31.03.2023
-
123,894,716
16,081,826
3,181
-
7,393,764
48,012,567
75,034,537
` in ‘000s
At
31.03.2022
-
88,248,164
21,463,118
3,451
-
3,680,645
35,163,419
77,732,740
IX. Deposits in Rural Infrastructure and Development Fund
216,216,187
264,194,161
X. Unrealised gain on foreign exchange and derivative contracts3
172,562,634
102,645,663
XI. Others
TOTAL OTHER ASSETS
72,805,568
55,269,854
732,004,980
648,401,215
1. No assets were sold during the year ended March 31, 2023 (year ended March 31, 2022: ` 563.6 million).
2. Net of provision amounting to ` 29,011.8 million (March 31, 2022: ` 29,011.8 million).
3. Gross unrealised loss on foreign exchange and derivative contracts is disclosed under Schedule 5 - Other liabilities.
SCHEDULE 12 - CONTINGENT LIABILITIES
I.
Claims against the Bank not acknowledged as debts
II. Liability for partly paid investments
At
31.03.2023
` in ‘000s
At
31.03.2022
81,963,017
82,838,729
12,455
12,455
III. Liability on account of outstanding forward exchange contracts1
15,330,218,103
10,645,244,026
IV. Guarantees given on behalf of constituents
a)
In India
b) Outside India
V. Acceptances, endorsements and other obligations
VI. Currency swaps1
1,107,502,893
882,110,255
130,675,436
155,637,359
441,907,720
462,814,238
564,629,994
498,337,575
VII. Interest rate swaps, currency options and interest rate futures1
25,089,176,610
25,912,435,012
VIII. Other items for which the Bank is contingently liable
85,568,259
37,329,068
TOTAL CONTINGENT LIABILITIES
1. Represents notional amount.
42,831,654,487
38,676,758,717
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FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Profit and Loss Account
SCHEDULE 13 - INTEREST EARNED
I.
II.
Interest/discount on advances/bills
Income on investments
III.
Interest on balances with Reserve Bank of India and other inter-bank funds
IV. Others1,2
TOTAL INTEREST EARNED
Year ended
31.03.2023
` in ‘000s
Year ended
31.03.2022
839,429,657
638,335,578
208,884,565
164,092,693
18,505,130
25,494,028
15,608,305
45,708,876
1,092,313,380
863,745,452
1. Includes interest on income tax refunds amounting to ` 1,144.8 million (March 31, 2022: ` 2,434.2 million).
2. Includes interest and amortisation of premium on non-trading interest rate swaps and foreign currency swaps.
SCHEDULE 14 - OTHER INCOME
I.
Commission, exchange and brokerage
II. Profit/(loss) on sale of investments (net)
III. Profit/(loss) on revaluation of investments (net)
IV. Profit/(loss) on sale of land, buildings and other assets (net)1
Year ended
31.03.2023
` in ‘000s
Year ended
31.03.2022
147,765,850
126,396,696
1,737,270
7,043,249
(1,296,397)
534,906
(17,653)
40,400
V. Profit/(loss) on exchange/derivative transactions (net)
30,278,524
29,634,217
VI.
Income earned by way of dividends, etc. from subsidiary companies
and/or joint ventures abroad/in India
VII. Miscellaneous income (including lease income)
TOTAL OTHER INCOME
1. Includes profit/(loss) on sale of assets given on lease.
SCHEDULE 15 - INTEREST EXPENDED
I.
II.
Interest on deposits
Interest on Reserve Bank of India/inter-bank borrowings
17,845,592
18,287,906
1,448,734
3,790,484
198,314,479
185,175,299
Year ended
31.03.2023
` in ‘000s
Year ended
31.03.2022
389,680,668
333,001,545
9,335,421
909,329
III. Others (including interest on borrowings of erstwhile ICICI Limited)
72,011,271
55,173,633
TOTAL INTEREST EXPENDED
471,027,360
389,084,507
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FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Profit and Loss Account (Contd.)
SCHEDULE 16 - OPERATING EXPENSES
I.
Payments to and provisions for employees
II. Rent, taxes and lighting1
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
Year ended
31.03.2023
120,599,320
13,789,914
2,471,090
14,773,598
13,048,350
199,538
47,851
60,199
1,277,541
5,896,242
31,251,038
14,789,240
28,901,240
81,627,230
` in ‘000s
Year ended
31.03.2022
96,727,472
12,410,538
2,058,744
10,073,452
11,523,100
187,914
45,484
52,962
1,150,521
5,725,178
24,649,279
12,944,781
22,568,493
67,215,242
328,732,391
267,333,160
1. Includes lease expense amounting to ` 10,784.1 million (March 31, 2022: ` 9,860.8 million).
2. Includes expenses on purchase of Priority Sector Lending Certificates (PSLC) amounting to ` 15,035.2 million (March 31, 2022:
` 13,206.1 million).
3. Net of recoveries from group companies towards shared services.
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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, 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.
Use of estimates
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)
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.
b)
Income on discounted instruments is recognised over the tenure of the instrument on a constant yield basis.
c) Dividend income is accounted on accrual basis when the right to receive the dividend is established.
d) Loan processing fee is accounted for upfront when it becomes due.
e) Project appraisal/structuring fee is accounted for on the completion of the agreed service.
Arranger fee is accounted for as income when a significant portion of the arrangement is completed and right
to receive is established.
Commission received on guarantees and letters of credit issued is amortised on a straight-line basis over the
period of the guarantee/letters of credit.
The annual/renewal fee on credit cards, debit cards and prepaid 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.
All other fees are accounted for as and when they become due where the Bank is reasonably certain of ultimate
collection.
f)
g)
h)
i)
j)
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Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
2.
Investments
Investments are accounted for in accordance with the extant RBI guidelines on investment classification and
valuation.
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.
Classification:
All investments are classified into ‘Held to Maturity’ (HTM), ‘Available for Sale’ (AFS) and ‘Held for Trading’ (HFT) on
the date of purchase as per the extant RBI guidelines on investment classification and valuation. 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.
Investments that are held principally for resale within 90 days from the date of purchase are classified as HFT
securities. Investments which the Bank intends to hold till maturity are classified as HTM securities. Investments
which are not classified in either of the above categories are classified under AFS securities. Investments in the
equity of subsidiaries/joint ventures are classified under HTM or AFS categories.
Cost of acquisition:
Costs, including brokerage and commission pertaining to investments paid at the time of acquisition and broken
period interest (the amount of interest from the previous interest payment date till the date of purchase of instruments)
on debt instruments, are charged to the profit and loss account.
Valuation:
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. The depreciation
on securities acquired by way of conversion of outstanding loans is fully provided. Non-performing investments are
identified based on the RBI guidelines.
HTM 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.
AFS and HFT 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 AFS, 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 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.
Treasury bills, commercial papers and certificate of deposits being discounted instruments, are valued at carrying
cost.
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The units of mutual funds are valued at the latest repurchase price/net asset value declared by the mutual fund.
Unquoted equity shares are valued at the break-up value, if the latest balance sheet is available, or at ` 1, as per
RBI guidelines.
The units of Venture Capital Funds (VCFs) are valued at the net asset value (NAV) declared by the VCF. If the latest
balance sheet is not available continuously for more than 18 months, the units of VCF are valued at ` 1, as per
RBI guidelines.
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 Bank makes additional provisions on the security receipts based on the remaining
period for the resolution period to 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.
The Bank assesses investments in subsidiaries for any other than temporary diminution in value and appropriate
provisions are made.
Depreciation/provision on non-performing investments is made as per internal provisioning norms, subject to
minimum provisioning requirements of RBI.
Disposal:
Gain/loss on sale of investments is recognised in the profit and loss Account. Cost of investments is computed based
on the First-In-First-Out (FIFO) method. The profit from sale of investment under HTM category, net of taxes and
transfer to statutory reserve is transferred to “Capital Reserve” in accordance with the RBI Guidelines.
Short sale:
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.
Repurchase transactions:
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.
3. Provision/write-offs on loans and other credit facilities
Classification:
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 but which are standard as per
the extant RBI guidelines are classified as NPAs to the extent of amount outstanding in the respective host country.
Further, NPAs are classified into sub-standard, doubtful and loss assets based on the criteria stipulated by RBI.
Interest on non-performing advances is transferred to an interest suspense account and not recognised in profit and
loss account until received.
The Bank considers an account as restructured, where for economic or legal reasons relating to the borrower’s
financial difficulty, the Bank grants concessions to the borrower, that the Bank would not otherwise consider. The
moratorium granted to the borrowers based on RBI guidelines is not accounted as restructuring of loan. The RBI
guidelines on ‘Resolution Framework for COVID-19-related Stress’ provide a prudential framework for resolution
plan of certain loans. The borrowers where resolution plan was implemented under these guidelines are classified
as standard restructured.
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Non-performing and restructured loans are upgraded to standard as per the extant RBI guidelines or host country
regulations, as applicable.
Provisioning:
In the case of corporate loans and advances, provisions are made for sub-standard and doubtful assets as per internal
provisioning norms, subject to minimum provisioning requirements of RBI. Loss assets and the unsecured portion of
doubtful assets are fully provided. For impaired loans and advances held in overseas branches, which are performing
as per RBI guidelines, provisions are made as per the host country regulations. For loans and advances held in overseas
branches, which are NPAs both as per the RBI guidelines and host country regulations, provisions are made at the higher
of the provisions required as per internal provisioning norms and host country regulations. Provisions on homogeneous
non-performing retail loans and advances, subject to minimum provisioning requirements of RBI, are made on the basis
of the ageing of the loan. The specific provisions on non-performing retail loans and advances held by the Bank are
higher than the minimum regulatory requirements.
In respect of non-retail loans reported as fraud to RBI the entire amount, is provided 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 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.
The Bank makes provision on restructured loans subject to minimum requirements as per RBI guidelines. Provision due
to diminution in the fair value of restructured/rescheduled loans and advances is made in accordance with the applicable
RBI guidelines.
In terms of RBI guidelines, the NPAs are written-off in accordance with the Bank’s policy. Amounts recovered against bad
debts written-off 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 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 aggregate provision required as per host country
regulations 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 Bank’s net funded
exposure in respect of a country is less than 1% of its total assets, no provision is required on such country exposure.
The Bank makes additional provisions as per RBI guidelines for the cases where viable resolution plan has not been
implemented within the timelines prescribed by the RBI, from the date of default. These additional provisions are written-
back on satisfying the conditions for reversal as per RBI guidelines.
The Bank, on prudent basis, has made contingency provision on certain loan portfolios, including borrowers who had
taken moratorium at any time during FY2021 under the extant RBI guidelines related to Covid-19 regulatory package.
The Bank also makes additional contingency provision on certain standard assets. The contingency provision is included
in ‘Schedule 5 - Other Liabilities and Provisions’.
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Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.) The Bank has a Board approved policy for making floating provision, 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 if 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, only if the Bank surrenders the right 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 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 based on the method prescribed in the guidelines.
As per the RBI guidelines issued on September 24, 2021, gain realised at the time of securitisation of loans is
accounted through profit and loss account on completion of transaction. The Bank accounts for any loss arising from
securitisation immediately at the time of sale.
The unrealised gains, associated with expected future margin income is recognised in profit and loss account on
receipt of cash, after absorbing losses, if any.
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 direct assignment of loan assets
is recognised at the time of sale. As per the RBI guidelines issued on September 24, 2021, any loss or realised gain
from sale of loan assets through direct assignment is accounted through profit and loss account on completion of
transaction.
The acquired loans is carried at acquisition cost. In case premium is paid on a loan acquired, premium is amortised
over the loan tenure.
In accordance with RBI guidelines, in case of non-performing loans sold to Asset Reconstruction Companies (ARCs),
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. Assets purchased/sold
during the year are depreciated on a pro-rata basis for the actual number of days the asset has been capitalised.
Assets individually costing upto ` 5,000/- are depreciated fully in the year of acquisition.
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.
The profit on sale of premises is appropriated to Capital Reserve, net of transfer to Statutory Reserve and taxes, in
accordance with RBI guidelines.
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The useful lives of the groups of fixed assets are given below.
Asset
Premises owned by the Bank
Useful life
60 years
Leased assets and improvements to leasehold premises
60 years or lease period whichever is lower
ATMs1,2
Plant and machinery1 (including office equipment)
Electric installations and equipments
Computers
Servers and network equipment1
Furniture and fixtures1
Motor vehicles1
Others (including software)1,3
5-8 years
5-10 years
10-15 years
3 years
4-10 years
5-10 years
5 years
3-4 years
1. The useful life of fixed 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.
2. Cash acceptor machine
3. Excludes software, which are procured based on licensing arrangements and depreciated over the period of license.
4. Assets at residences of Bank’s employees are depreciated over the estimated useful life of 5 years.
Non-banking assets
Non-banking assets (NBAs) acquired in satisfaction of claims are valued at the market value on a distress sale
basis or value of loan, whichever is lower. Further, the Bank creates provision on these assets as per the extant RBI
guidelines or specific RBI directions.
6. Translation of foreign currency items
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 recognised 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, 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.
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7. Foreign exchange and derivative contracts
The forward exchange contracts that are not intended for trading and are entered into to establish the amount of
reporting currency required or available at the settlement date of a transaction are effectively valued at closing spot
rate. The premium or discount arising on inception of such forward exchange contracts is amortised over the life
of the contract as interest income/expense. 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.
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. The Bank identifies the hedged item (asset or liability) at the inception of the transaction itself.
Hedge effectiveness is ascertained at the time of the inception of the hedge and periodically thereafter. Based on
RBI circular issued on June 26, 2019, the accounting of hedge relationships established after June 26, 2019 is in
accordance with the Guidance note on Accounting for Derivative Contracts issued by ICAI. The swaps under hedge
relationships established prior to that date are accounted on an accrual basis and are not marked to market unless
their underlying transaction is marked-to-market. Gains or losses arising from hedge ineffectiveness, if any, are
recognised in the profit and loss Account.
The derivative contracts entered into for trading purposes are marked-to-market and the resulting gain or loss is
accounted 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 options granted vest in a graded manner
and may be exercised within a specified period.
Till March 31, 2021, the Bank recognised cost of stock options granted under Employee Stock Option Scheme, using
intrinsic value method. Under Intrinsic value method, options cost is measured as the excess, if any, of the fair market
price of the underlying stock over the exercise price on the grant date. The fair market price is the closing price on the
stock exchange with highest trading volume of the underlying shares, immediately prior to the grant date.
Pursuant to RBI clarification dated August 30, 2021, the cost of stock options granted after March 31, 2021 is
recognised based on fair value method. The cost of stock options granted up to March 31, 2021 continues to be
recognised on intrinsic value method. The Bank uses Black-Scholes model to fair value the options on the grant
date and the inputs used in the valuation model include assumptions such as the expected life of the share option,
volatility, risk free rate and dividend yield.
The cost of stock options is recognised in the profit and loss account over the vesting period.
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 recognised trust which administers the funds on its own account or
through insurance companies.
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Actuarial valuation of the gratuity liability is determined by an independent 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. The actuarial gains or losses arising during the
year are recognised in the profit and loss account.
Superannuation Fund and National Pension Scheme
The Bank has a superannuation fund, a defined contribution plan, which is administered by trustees and managed
by insurance companies. The Bank contributes 15.0% of the total annual basic salary for certain employees to
superannuation funds. Further, the Bank contributes upto 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 employees are given an option to receive the amount in cash 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. The Bank has no liability towards future benefits under superannuation
fund and national pension scheme other than its annual contribution.
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 independent 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 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. The Bank recognises such contribution as
an expense in the year in which it is incurred.
Interest payable on provident fund should not be lower than the statutory rate of interest declared by the Central
Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. Actuarial valuation for
the interest obligation 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.
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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 and change in tax rate.
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 by 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.
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.
For assets other than premises, the Bank assesses at each balance sheet date whether there is any indication that
an asset may be impaired. Impairment loss, if any, is provided in the profit and loss account to the extent the carrying
amount of assets exceeds their estimated recoverable amount.
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.
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 for 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.
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14. Share issue expenses
Share issue expenses are deducted from Share Premium Account in terms of Section 52 of the Companies Act, 2013.
15. Bullion transaction
The Bank deals in bullion business on a consignment basis. The bullion is priced to the customers based on the price
quoted by the supplier. The difference between price recovered from customers and cost of bullion is accounted for
as commission at the time of sales to the customers. The Bank also deals in bullion on a borrowing and lending basis
and the interest expense/income is accounted on accrual basis.
16. Lease transactions
Lease payments, including cost escalations, 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. The leases of property, plant and equipment, where
substantially all of the risks and rewards of ownership are transferred to the Bank are classified as finance lease.
Minimum lease payments under finance lease are apportioned between the finance costs and outstanding liability.
17. 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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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.
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
Net profit/(loss) attributable to equity share holders
Nominal value per share (`)
Basic earnings per share (`)
Effect of potential equity shares (`)
Diluted earnings per share (`)1
Reconciliation between weighted shares used in computation of basic
and diluted earnings per share
Basic weighted average number of equity shares outstanding
Add: Effect of potential equity shares
Diluted weighted average number of equity shares outstanding
1. The dilutive impact is due to options granted to employees by the Bank.
` in million, except per share data
Year ended
March 31, 2023
318,965.0
2.00
45.79
(0.90)
44.89
Year ended
March 31, 2022
233,394.9
2.00
33.66
(0.68)
32.98
6,966,305,957
138,684,400
7,104,990,357
6,933,652,636
142,291,212
7,075,943,848
2. Business/Information ratios
The following table sets forth, for the periods indicated, the business/information ratios.
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
Particulars
Interest income to working funds1
Non-interest income to working funds1
Cost of deposits
Net interest margin2
Operating profit to working funds1,3
Return on assets4
Net profit/(loss) per employee5 (` in million)
Business (average deposits plus average advances) per
employee5,6 (` in million)
Year ended
March 31, 2023
7.40%
1.34%
3.66%
4.48%
3.33%
2.16%
2.8
Year ended
March 31, 2022
6.83%
1.46%
3.53%
3.96%
3.10%
1.84%
2.3
170.7
166.9
1. For the purpose of computing the ratio, working funds represent the simple average of balances of total assets computed for
monthly reporting dates of Form X submitted to RBI under Section 27 of the Banking Regulation Act, 1949.
2. Net interest income/Average earning assets. Net interest income is the difference of interest income and interest expense.
Average earning assets are average of daily balance of interest earning assets.
3. Operating profit is profit for the year before provisions and contingencies.
4. 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.
5. Computed based on average number of employees which include sales executives, employees on fixed term contracts and interns.
6. 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.
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3. Capital adequacy ratio
The Bank is subject to the Basel III capital adequacy guidelines stipulated by RBI with effect from April 1, 2013. As
per the guidelines, the Tier-1 capital is made up of Common Equity Tier-1 (CET1) and Additional Tier-1.
Basel III guidelines require the Bank to maintain a minimum Capital to Risk-Weighted Assets Ratio (CRAR) of
11.70% with minimum CET1 CRAR of 8.20% and minimum Tier-1 CRAR of 9.70%. The minimum total CRAR, Tier-1
CRAR and CET1 CRAR requirement include capital conservation buffer of 2.50% and additional capital requirement
of 0.20% 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
Common Equity Tier 1 capital (CET 1)
Additional Tier 1 capital
Tier 1 capital (i + ii)
Tier 2 capital
Total capital (Tier 1+Tier 2)
Total Risk Weighted Assets (RWAs)
CET1 CRAR (%)
Tier-1 CRAR (%)
Tier-2 CRAR (%)
Total CRAR (%)
Leverage Ratio
Percentage of the shareholding of
a) Government of India
Amount of equity capital raised1
Amount of non-equity Tier-1 capital raised during the year, of which:
a) Perpetual Non-Cumulative Preference Shares
b) Perpetual Debt Instruments
Amount of Tier-2 capital raised; of which
1. Debt Capital Instruments
2.
Preference Share Capital Instruments [Perpetual Cumulative
Preference Shares (PCPS)/Redeemable Non-Cumulative Preference
Shares (RNCPS)/Redeemable Cumulative Preference Shares
(RCPS)]
` in million, except percentage
At
March 31, 2023
1,832,770.7
51,400.0
1,884,170.7
78,652.2
1,962,822.9
10,705,150.5
17.12%
17.60%
0.74%
18.34%
10.27%
At
March 31, 2022
1,555,000.1
66,206.5
1,621,206.6
71,923.7
1,693,130.3
8,835,909.9
17.60%
18.35%
0.81%
19.16%
9.95%
0.20%
-
0.19%
-
-
-
-
-
-
-
-
-
1. Additionally ` 9,644.4 million raised pursuant to exercise of employee stock options during the year ended March 31, 2023 (year
ended March 31, 2022: ` 7,988.8 million).
4. Liquidity coverage ratio
The Basel Committee on 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 is 100.0%.
175
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
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U
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Liquidity of the Bank is managed by the Asset Liability Management Group (ALMG) under the central oversight
of the Asset Liability Management Committee (ALCO). For the domestic operations of the Bank, ALMG-India is
responsible for the overall management of liquidity. For the overseas branches of the Bank, a decentralised approach
is followed for day-to-day liquidity management, while a centralised approach is followed for long-term funding in
co-ordination with Head Office. Liquidity in the overseas branches is maintained taking into consideration both host
country and the RBI regulations.
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 ` 2,753,045.5 million
(March 31, 2022: ` 2,790,136.8 million) at March 31, 2023.
As per the RBI guidelines, the carve-out from SLR under FALLCR was 15.0% of Net Demand and Time Liabilities
(NDTL) till April 17, 2022 and was increased to 16.0% of NDTL effective April 18, 2022; for Marginal Standing
Facility (MSF), it was 2.0% of NDTL. Additionally, cash, balance in excess of cash reserve requirement with RBI and
balances with central banks at our overseas branches locations amounted to ` 320,660.8 million at March 31, 2023
(March 31, 2022: ` 263,064.3 million). Further, average level 2 assets, primarily consisting of AA- and above rated
corporate bonds and commercial papers, amounted to ` 127,857.7 million at March 31, 2023 (March 31, 2022:
` 76,569.7 million).
At March 31, 2023, top liability products/instruments and their percentage contribution to the total liabilities of the
Bank were term deposits of 40.37% (March 31, 2022: 38.67%), savings account deposits of 23.97% (March 31,
2022: 25.49%), current account deposits of 10.19% (March 31, 2022: 11.22%) and bond borrowings of 4.26%
(March 31, 2022: 4.96%). Top 20 depositors comprised 3.47% of the total deposits of the Bank at March 31, 2023
(March 31, 2022: 5.26%). 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 2.48% of the total liabilities of the Bank
at March 31, 2023 (March 31, 2022: 2.37%).
The weighted cash outflows are primarily driven by unsecured wholesale funding which includes non-operational
deposits and unsecured debt. During the three months ended March 31, 2023, unsecured wholesale funding
contributed 60.57% (March 31, 2022: 63.61%) 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 constituted 18.17% (March 31, 2022: 17.36%) and 7.29%
(March 31, 2022: 6.00%) of the total weighted cash outflows, respectively. The other contingent funding obligations
primarily included 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
margining and consequent collateral exchange would be as governed by Credit Support Annex (CSA). The Bank
has entered into CSAs which would require maintenance of collateral. 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, 2023 was 124.13% (March 31, 2022:
131.09%). During the year ended March 31, 2023, other than Indian Rupee, USD was the only significant foreign
currency which constituted more than 5% of the balance sheet size of the Bank. The average LCR of the Bank for
USD currency, computed based on daily LCR values, was 83.68% for the three months ended March 31, 2023
(March 31, 2022: 256.23%).
177
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
5.
Information about business and geographical segments
Business Segments
Pursuant to the guidelines issued by RBI on AS 17 - Segment Reporting, 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)
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.
•
Unallocated includes items such as tax paid in advance net of provision, deferred tax and provisions to the
extent reckoned at the entity level.
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.
Particulars
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
Revenue
Less: Inter-segment revenue
Total revenue (1)–(2)
Segment results
Unallocated expenses
Operating profit (4)-(5)
Income tax expenses
(including deferred tax credit)
Net profit/(loss) (6)-(7)
Segment assets
Total assets (9)+(10)
Segment liabilities
8.
9.
10. Unallocated assets
11.
12.
13. Unallocated liabilities
14.
15.
16. Depreciation
Total liabilities (12)+(13)
Capital expenditure
For the year ended March 31, 2023
Retail
Banking
Wholesale
Banking
Treasury
1,037,753.4
506,148.5
847,707.4
Other
Banking
Business
23,830.6
175,336.8
157,857.8
142,715.5
4,802.2
` in million
Total
2,415,439.9
1,124,812.0
1,290,627.9
480,712.3
56,500.0
424,212.3
6,039,593.7 4,328,743.5 5,084,697.5
8,913,545.4 3,472,764.9 3,299,563.5
11,682.9
9,274.5
5,251.8
3,427.2
610.6
335.8
105,247.3
318,965.0
297,915.4 15,750,950.1
91,116.4
15,842,066.5
25,192.7 15,711,066.5
131,000.0
15,842,066.5
17,822.3
13,247.9
277.0
210.4
1. Includes share capital and reserves and surplus.
178
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Sr.
No.
Particulars
1.
2.
3.
4.
5.
6.
7.
Revenue
Less: Inter-segment revenue
Total revenue (1)–(2)
Segment results
Unallocated expenses
Operating profit (4)-(5)
Income tax expenses
(including deferred tax credit)
Net profit/(loss) (6)-(7)
Segment assets
Total assets (9)+(10)
Segment liabilities
8.
9.
10. Unallocated assets
11.
12.
13. Unallocated liabilities
14.
15.
16. Depreciation
Total liabilities (12)+(13)
Capital expenditure
For the year ended March 31, 2022
Retail
Banking
Wholesale
Banking
Treasury
Other
Banking
Business
846,392.2
399,714.9
675,041.1
13,139.0
114,003.9
90,529.3
98,202.2
3,103.5
` in million
Total
1,934,287.2
885,366.4
1,048,920.8
305,838.9
(250.0)
306,088.9
4,876,519.3 3,790,918.0
5,181,297.0
7,918,942.5 3,213,907.0 2,895,745.31
9,901.7
8,068.8
4,453.3
3,130.8
623.1
399.6
72,694.0
233,394.9
165,047.3 14,013,781.6
99,195.8
14,112,977.4
22,028.0 14,050,622.8
62,354.6
14,112,977.4
15,148.7
11,711.0
170.6
111.8
1. Includes share capital and reserves and surplus.
‘RBI’s Master Direction on Financial Statements – Presentation and Disclosures, requires to sub-divide ‘Retail
banking’ into (a) Digital Banking (as defined in RBI circular on Establishment of Digital Banking Units dated April 7,
2022) and (b) Other Retail Banking segment. Accordingly, the segmental results for retail banking segment for the
three months ended march 31, 2023 is sub-divided as below:
Sr.
No.
Particulars
Segment
revenue
Segment
results
Segment
assets
Segment
liabilities
Capital
expenditure
Retail Banking
287,393.4
49,026.3 6,039,593.7 8,913,545.4
2,799.1
(i)
(ii)
Digital Banking
64,748.7
15,354.8
941,323.5 1,306,703.2
Other Retail Banking
222,644.7
33,671.5 5,098,270.2 7,606,842.2
141.5
2,657.6
` in million
Depreciation
2,513.2
128.6
2,384.6
179
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
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 tables set forth, for the periods indicated, geographical segment results.
Revenues
Domestic operations
Foreign operations
Total
Assets
Domestic operations
Foreign operations
Total
Year ended
March 31, 2023
1,257,715.6
32,912.3
1,290,627.9
At
March 31, 2023
15,019,154.1
731,796.0
15,750,950.1
` in million
Year ended
March 31, 2022
1,030,521.2
18,399.6
1,048,920.8
` in million
At
March 31, 2022
13,147,975.3
865,806.3
14,013,781.6
1. 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.
` in million
Particulars
Domestic operations
Foreign operations
Total
Capital expenditure incurred during
Depreciation provided during
Year ended
March 31, 2023
Year ended
March 31, 2022
Year ended
March 31, 2023
Year ended
March 31, 2022
17,672.8
149.5
17,822.3
15,089.7
59.0
15,148.7
13,164.4
83.5
13,247.9
11,633.6
77.4
11,711.0
180
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
6. Maturity pattern
The following table sets forth, the maturity pattern of assets and liabilities of the Bank at March 31, 2023.
Maturity buckets
Loans &
Advances1
Investment
securities1
Deposits1 Borrowings1
` in million
Total foreign
currency
assets2
Total foreign
currency
liabilities2
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
1 to 3 years
3 to 5 years
10,042.4 1,245,694.5
127,754.2
-
35,349.4
116,565.8
113,368.4
564,803.8
21,086.7
474,567.6
95,999.8
67,409.4
228,411.9
239,586.3
111,274.4
194,054.5
444,361.0
457,284.2
63,882.2
306,379.7
51,112.4
313,978.8
665,075.0
114,959.0
559,170.4
10,111.6
16,811.4
51,726.9
98,068.9
92,851.8
1,637.6
50,108.9
24,821.5
38,634.4
63,990.3
51,706.2
75,904.4
91,177.0
68,969.2
61,989.4
87,871.1
96,509.6
93,123.7
79,832.7
6 months to 1 year
1,081,144.6
190,744.3
901,157.0
179,973.3
2,883,348.7
397,446.1 1,588,983.4
324,902.8
89,170.3
205,213.2
Above 5 years
2,311,671.1
690,578.7 3,502,420.5
267,112.5
1,891,304.2
576,828.0 3,521,292.8
130,609.0
18,342.9
48,785.1
45,168.3
10,802.2
Total
10,196,383.1
3,623,297.4 11,808,407.0
1,193,254.9
1,154,511.0
659,164.0
1. Includes foreign currency balances.
2. Excludes off-balance sheet assets and liabilities.
The following table sets forth, the maturity pattern of assets and liabilities of the Bank at March 31, 2022.
Maturity buckets
Loans &
Advances1
Investment
securities1
Deposits1 Borrowings1
` in million
Total foreign
currency
assets2
Total foreign
currency
liabilities2
10,023.7
1,023,151.0
162,162.4
758.0
395,980.6
79,283.8
93,192.1
194,044.8
377,596.2
440,510.6
662,714.9
83,798.1
607,138.7
9,668.5
177,666.4
67,604.5
235,678.2
11,180.3
128,950.4
68,387.2
185,586.0
7,968.7
62,348.0
44,084.5
258,346.3
68,339.1
138,111.6
44,274.6
250,332.6
31,920.8
128,634.4
6,728.2
14,922.0
19,335.6
22,612.3
77,095.6
42,766.8
90,264.3
375,680.6
139,027.8
149,013.3
132,171.2
6 months to 1 year
900,298.5
168,371.2
560,255.7
77,967.0
64,919.5
42,368.4
2,349,247.5
318,754.2
1,254,163.9
316,029.9
51,242.0
122,288.6
Above 5 years
1,864,371.2
653,959.3
3,366,428.6
254,112.2
1,618,921.1
539,761.1
3,389,943.1
155,341.3
15,862.0
55,769.6
77,514.1
49,228.9
Total
8,590,204.4
3,102,410.0 10,645,716.1
1,072,313.6
1,368,497.8
607,031.7
1. Includes foreign currency balances.
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 are based on the returns submitted to RBI for the relevant periods.
181
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
1 to 3 years
3 to 5 years
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
7. Employee Stock Option Scheme (ESOS)
In terms of the ESOS, as amended, the maximum number of options granted to any eligible employee in a financial
year shall not exceed 0.05% of the issued equity shares of the Bank at the time of grant of the options and aggregate
of all such options granted to the eligible employees shall not exceed 10.0% 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. 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 on April 30, 2018 and
option granted in September 2015 which vested to the extent of 50% on April 30, 2018 and balance 50% vested
on April 30, 2019. Options granted in January 2018 vested at the end of four years from the date of grant. Certain
options granted in May 2018, vested to the extent of 50% on May 2021 and balance 50% on May 2022.
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.
The weighted average fair value, based on Black-Scholes model, of options granted during the year ended March 31,
2023 was ` 291.15 (year ended March 31, 2022: ` 227.75).
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 term
Expected volatility
Expected dividend yield
Year ended
March 31, 2023
5.99% to 7.37%
Year ended
March 31, 2022
5.34% to 6.53%
3.23 to 5.23 years 3.55 to 5.55 years
34.79% to 38.98% 35.38% to 39.41%
0.18% to 0.30%
0.27% to 0.72%
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 behavior 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.
182
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
The following table sets forth, for the periods indicated, the summary of the status of the Bank’s stock option plan.
Particulars
` except number of options
Stock options outstanding
Year ended March 31, 2023
Year ended March 31, 2022
Number of
options
Weighted
average
exercise price
Number of
options
Weighted
average
exercise price
Outstanding at the beginning of the year
237,197,999
310.82 246,590,972
Add: Granted during the year
25,793,500
747.92
25,550,350
Less: Lapsed during the year, net of re-issuance
3,921,340
568.36
2,164,335
Less: Exercised during the year
34,044,356
276.72
32,778,988
Outstanding at the end of the year
225,025,803
361.60 237,197,999
Options exercisable
172,938,533
289.69 177,170,739
276.14
570.43
444.41
243.44
310.82
264.69
The following table sets forth, the summary of stock options outstanding at March 31, 2023.
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)
60-199
200-399
400-599
600-799
800-899
7,202,993
145,129,078
48,347,432
24,274,900
71,400
160.84
267.52
479.32
747.62
862.88
1.85
4.37
4.15
6.17
6.58
The following table sets forth, the summary of stock options outstanding at March 31, 2022.
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)
60-199
200-399
400-599
600-799
800-899
11,245,113
171,000,375
54,887,211
46,300
19,000
160.69
267.10
477.26
737.63
810.25
2.52
5.30
5.11
6.63
6.92
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, 2023 was ` 832.00 (year ended March 31, 2022:
` 703.14).
8. Subordinated debt
During the year ended March 31, 2023 the Bank has not raised (March 31, 2022: Nil) subordinated debt bonds
qualifying for Additional Tier-1 capital and subordinated debt qualifying for Tier-2 capital (March 31, 2022: Nil).
183
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
9. 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
Securities sold under Repo, LAF and MSF
i)
ii)
iii)
Government Securities
Corporate Debt Securities
Any other securities
Securities purchased under Reverse Repo and LAF
i)
ii)
iii)
Government Securities
Corporate Debt Securities
Any other securities
` in million
Minimum
outstanding
balance
during the
Maximum
outstanding
balance
during the
Daily average
outstanding
balance
during the
Outstanding
balance at
March 31,
2023
Year ended March 31, 2023
-
-
-
-
-
-
244,318.8
137,385.3
1,000.0
-
2.7
-
660,560.0
101,231.3
4,250.0
-
88.4
-
-
-
-
-
-
-
1. Amounts reported are based on face value of securities under Repo and Reverse repo.
2. Amounts reported are based on lending/borrowing amount under tri-party repo, LAF and MSF.
Sr.
No.
Particulars
Securities sold under Repo, LAF and MSF
i)
ii)
iii)
Government Securities
Corporate Debt Securities
Any other securities
Securities purchased under Reverse Repo and LAF
i)
ii)
iii)
Government Securities
Corporate Debt Securities
Any other securities
` in million
Minimum
outstanding
balance
during the
Maximum
outstanding
balance
during the
Daily average
outstanding
balance
during the
Outstanding
balance at
March 31,
2022
Year ended March 31, 2022
-
-
-
-
-
-
429,969.4
109,949.5
5,000.0
-
-
-
-
-
-
932,200.0
398,949.8
494,020.0
2,000.0
-
60.3
-
-
-
1 Amounts reported are based on face value of securities under Repo and Reverse repo.
2. Amounts reported are based on lending/borrowing amount under tri-party repo, LAF and MSF.
184
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
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L
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Securities kept as margin
The following table sets forth, the face value of securities that are kept as margin are as under:
Particulars
Sr.
No.
Securities kept as margin with Clearing Corporation of India towards
(CCIL)
i)
ii)
iii) Default Fund-Forex Forward Segment
iv) Default Fund-Forex Settlement Segment
v)
Collateral and fund management-Securities Segment
Collateral and fund management-Tri-Party Repo
Default Fund-Rupee Derivatives (Guaranteed Settlement)
Segment
Real Time Gross Settlement (RTGS)
Repo Transactions
vi) Default Fund-Securities Segment
vii) Default Fund-Tri-Party Repo Segment
Securities kept as margin with the RBI towards
i)
ii)
Securities kept with National Securities Clearing Corporation of India
(NSCCIL) towards NSE Currency Derivative Segment
Securities kept with London clearing house (LCH) Clearnet Limited
towards LCH Currency Derivative Segment
` in million
At
March 31, 2023
At
March 31, 2022
26,050.0
356,050.0
2,250.0
220.0
1,920.0
120.0
150.0
50,250.0
384,680.0
3,650.0
250.0
1,950.0
150.0
300.0
-
314,750.0
-
314,750.0
14,000.0
16,000.0
9,531.7
-
11. Movement of provisions for depreciation on investments and Investment Fluctuation Reserve
The following table sets forth, for the period indicated, the movement of provisions for depreciation on investments
and Investment Fluctuation Reserve of the Bank.
Sr.
No.
Particulars
A. 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
B. Movement of Investment Fluctuation Reserve
i) Opening balance
ii) Add: Amount transferred during the year
iii) Less: drawdown
iv) Closing balance
C.
Closing balance in IFR as a percentage of closing balance of
investments in AFS and HFT/Current category
` in million, except percentage
At
March 31, 2023
At
March 31, 2022
51,415.7
14,688.5
(4,527.1)
61,577.1
20,715.0
1,043.8
-
49,791.2
7,633.3
(6,008.8)
51,415.7
16,886.2
3,828.8
-
21,758.8
20,715.0
2.00%
2.00%
187
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
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, 2023.
Sr.
No.
Issuer
1.
2.
3.
4.
5.
6.
7.
PSUs
FIs
Banks
Private corporates
Subsidiaries/ Joint ventures
Others3,4
Provision held towards
depreciation
Total
Amount
Extent of
private
placement
(a)
Extent of ‘below
investment
grade’ securities
(b)
Extent of
‘unrated’
securities2,4
(c)
34,991.4
76,392.3
21,652.3
237,340.3
88,613.0
168,112.2
15,118.9
54,146.0
13,341.1
200,086.4
5,525.3
125,722.9
-
797.0
1,069.2
2,965.0
-
20,098.25
-
181.8
-
695.0
-
-
` in million
Extent of
‘unlisted’
securities2,4
(d)
4,920.0
-
2,358.7
13,375.7
-
-
(61,577.1)
565,524.4
-
413,940.6
-
24,929.4
-
876.8
-
20,654.4
1. Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.
2. 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.
3. Includes investments in non-Indian government securities by overseas branches amounting to ` 42,389.4 million.
4. Excludes investments in non-SLR Government of India securities amounting to ` 81.0 million.
5. Represents security receipts.
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, 2022.
Sr.
No.
Issuer
1.
2.
3.
4.
5.
6.
7.
PSUs
FIs
Banks
Private corporates
Subsidiaries/ Joint ventures
Others3,4
Provision held towards
depreciation
Total
Amount
10,242.6
70,954.3
42,146.6
184,022.2
85,963.1
196,565.0
Extent of
private
placement
(a)
3,577.2
39,157.1
30,396.2
138,165.4
5,525.3
87,733.5
(51,361.1)
538,532.7
N.A.
304,554.7
` in million
Extent of ‘below
investment
grade’ securities
(b)
Extent of
‘unrated’
securities2,4
(c)
Extent of
‘unlisted’
securities2,4
(d)
-
804.0
10,932.6
-
-
22,033.25
N.A.
33,769.8
-
181.8
-
690.4
-
-
N.A.
872.2
-
-
2,251.0
10,375.7
-
-
N.A.
12,626.7
1. Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.
2. 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.
3. Includes investments in non-Indian government securities by overseas branches amounting to ` 104,390.9 million.
4. Excludes investments in non-SLR Government of India securities amounting to ` 94.5 million.
5. Represents security receipts.
188
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
ii) Non-performing investments in securities, other than government and other approved securities
The following table sets forth, for the periods indicated, the movement in gross non-performing investments in
securities, other than government and other approved securities.
Particulars
Opening balance
Additions during the year
Reduction during the year
Closing balance
Total provision held
Year ended
March 31, 2023
40,891.6
10,106.1
(6,081.5)
44,916.2
40,394.6
` in million
Year ended
March 31, 2022
44,236.9
400.8
(3,746.1)
40,891.6
34,655.8
13. Sales and transfers of securities to/from Held to Maturity (HTM) category
During the year ended March 31, 2023 and March 31, 2022, the value of sales/transfers of securities to/from HTM
category did not exceed 5.0% of the book value of investments held in HTM category at the beginning of the year.
Sales and transfers of securities to/from HTM category does not include one-time transfer of securities, direct sales
from HTM for bringing down SLR holdings consequent to a downward revision in SLR requirements by RBI, sales
to RBI under open market operation auctions and government securities acquisition programme, repurchase of
government securities by Government of India and state development loans by concerned state government under
buyback or switch operations and additional shifting of securities explicitly permitted by RBI.
14. Derivatives
The Bank is a 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 and Securities Service
Group (TSSG) 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 Executive Director of the Bank.
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.
189
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Based on RBI circular issued on June 26, 2019, the accounting of hedge relationships established after June 26, 2019
is in accordance with the Guidance note on Accounting for Derivative Contracts issued by ICAI. The swaps under
hedge relationships established prior to that date are accounted for on an accrual basis and are not marked to
market unless their underlying transaction is marked-to-market. Gains or losses arising from hedge ineffectiveness,
if any, are recognised in the profit and loss Account. The premium on option contracts is accounted for as per Foreign
Exchange Dearlers 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 Board of Directors has authorised ALCO to review and approve matters, as applicable, pertaining to the LIBOR
transition to alternate risk free rates. A LIBOR Working Group has been constituted which reviews the progress
on the international front, and the work carried out alongside Indian Banking Association (IBA). An update on the
activities on the LIBOR transition and the proceedings of the Working Group are presented quarterly to ALCO. The
necessary changes were implemented in the treasury system of the Bank to handle the transition of existing trades
to the alternate risk free rates. The transition was carried out for the LIBORs (GBP, JPY, EUR, CHF) that ceased
on December 31, 2021. USD LIBORs are expected to cease at the end of June 2023. There is sufficient liquidity in
market for USD LIBOR linked trades. The Bank does not expect material valuation risk arising out of non-alignment
of fallback provisions of commercially linked positions i.e., trading deals and on the existing hedge deals of the Bank.
The following tables set forth, for the periods indicated, the details of derivative positions.
Particulars
At March 31, 2023
At March 31, 2022
Currency
derivative1
Interest rate
derivative2
Currency
derivative1
Interest rate
derivative2
` in million
-
Derivatives (Notional principal amount)
a) For hedging
b) For trading
Marked to market positions (net)3
a) Asset (+)
b) Liability (-)
Credit exposure4
Likely impact of one percentage change in interest rate (100*PV01)5
a) On hedging derivatives6
b) On trading derivatives
Maximum and minimum of 100*PV01 observed during the period
a) On hedging6
364,145.0
1,662,275.0 23,627,386.6
9,074.0
97,204.6
(88,130.6)
291,761.7
(13,368.4)
36,738.3
(50,106.7)
104,371.8
7,813.2
10,770.6
-
1,467.5
-
256,843.9
1,200,607.0 24,953,321.7
(62.3)
47,374.3
(47,436.6)
254,103.7
(1,168.5)
25,319.0
(26,487.5)
88,160.4
-
2,551.3
6,289.6
6,129.0
Sr.
No.
1.
2.
3.
4.
5.
Maximum
Minimum
b) On trading
Maximum
Minimum
-
-
9,327.0
5,937.8
-
-
2,948.6
1,416.4
11,379.1
1,489.8
2,916.3
2,440.3
6,454.8
5,073.9
7,949.6
1,170.2
1. Exchange traded and OTC options, cross currency interest rate swaps and currency futures are included in currency derivatives.
2. OTC interest rate options, interest rate swaps, forward rate agreements, swaptions and exchange traded interest rate derivatives
are included in interest rate derivatives.
3. For trading portfolio including accrued interest.
4. Includes accrued interest and has been computed based on current exposure method.
5. Amounts given are absolute values on a net basis, excluding options.
6. The swap contracts entered into for hedging purpose would have an opposite and off-setting impact with the underlying on-
balance sheet items.
190
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
The following tables set forth, for the periods indicated, the details of Foreign exchange contracts.
Sr.
No.
1.
2.
3.
4.
Particulars
Foreign exchange contracts
(Notional principal amount)
Marked to market positions (net)
1. Asset (+)
2. Liability (-)
Credit exposure1
Likely impact of one percentage change in
interest rate (100*PV01)2
At March 31, 2023
At March 31, 2022
Trading
Non-trading
Trading
Non-trading
14,350,624.0
979,594.1
9,657,484.9
987,759.1
` in million
467.4
24,154.1
(23,686.7)
366,783.1
(1,077.3)
2,154.3
(3,231.7)
27,480.1
(6,931.4)
18,946.4
(25,877.8)
258,106.9
1,265.1
1,733.1
(468.0)
25,818.5
38.9
26.5
42.3
39.8
1. Computed as per RBI Master Circular on Exposure Norms dated July 1, 2015.
2. Amounts given are absolute values on a net basis.
As per the Master circular on Basel III Capital Regulations issued by RBI on April 1, 2022 on capital adequacy
computation, ‘Banks in India shall adopt the comprehensive approach, which allows fuller offset of collateral
against exposures, by effectively reducing the exposure amount by the value ascribed to the collateral’. Therefore,
counterparty exposure has been fully off-set against the collateral received from the counterparty and the excess
collateral posted over the net MTM payable is reckoned as exposure. Since, the collateral received is counterparty-
wise and not product-wise, the derivative exposure reported above has not been adjusted for the collateral received/
posted. At March 31, 2023, collateral utilised against the exposure was ` 11,761.9 million (March 31, 2022: ` 7,762.9
million), excess collateral posted over the exposure was ` 1,118.2 million (March 31, 2022: ` 1,959.5 million) and the
net credit exposure on Foreign exchange and derivatives, subsequent to collateral netting, was ` 779,752.9 million
(March 31, 2022: ` 620,386.1 million).
The net overnight open position (NOOP) at March 31, 2023 (as per last NOOP value reported to RBI for the year
ended March 31, 2023) was ` 4,710.8 million (March 31, 2022: ` 6,202.9 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, 2023 (March 31, 2022: Nil).
15. 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.
Sr.
No.
1.
2.
3.
Particulars
Notional principal amount of exchange traded interest rate
derivatives undertaken during the year
- 10 year Government Security Notional Bond
Notional principal amount of exchange traded
derivatives outstanding
- 10 year Government Security Notional Bond
Notional principal amount of exchange traded
derivatives outstanding and not ‘highly effective’
interest rate
interest rate
4. Mark-to-market value of exchange traded interest rate derivatives
outstanding and not ‘highly effective’
` in million
At
March 31, 2023
At
March 31, 2022
-
-
N.A.
N.A.
4,539.2
-
N.A.
N.A.
191
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Exchange traded currency derivatives
The following table sets forth, for the periods indicated, the details of exchange traded currency derivatives.
Sr.
No.
1.
2.
3.
Particulars
Notional principal amount of exchange traded currency derivatives
undertaken during the year
Notional principal amount of exchange traded currency derivatives
options outstanding
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’
` in million
At
March 31, 2023
At
March 31, 2022
2,582,348.5
2,806,476.4
37,567.3
62,910.2
N.A.
N.A.
N.A.
N.A.
16. 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.
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.
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 Alternative Reference Rates (ARR) like Sterling Overnight
Index Average (SONIA), Secured Overnight Financing Rate (SOFR) and Tokyo Overnight Average Rate (TONAR).
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 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 contracts.
Sr.
No.
1.
2.
3.
4.
5.
Particulars
Notional principal of FRA/IRS
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
` in million
At
March 31, 2023
23,972,449.0
At
March 31, 2022
25,184,685.1
97,127.6
-
5,112.9
1,963.7
47,632.0
-
3,414.2
(1,418.3)
1. For trading portfolio both mark-to-market and accrued interest have been considered and for hedging portfolio only accrued
interest has been considered.
2. Credit risk concentration is measured as the highest net receivable under these contracts from a particular counter party.
3. Fair value represents mark- to-market including accrued interest.
192
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
The following table sets forth, for the periods indicated, the details of the CCS.
Sr.
No.
1.
2.
3.
4.
5.
Particulars
Notional principal of CCS1
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
` in million
At
March 31, 2023
At
March 31, 2022
564,630.0
498,337.6
30,706.1
-
11,907.4
(6,157.1)
21,767.1
-
10,402.8
2,672.3
1. CCS includes cross currency interest rate swaps and currency swaps.
2. For trading portfolio both mark-to-market and accrued interest have been considered and for hedging portfolio only accrued
interest has been considered.
3. Credit risk concentration is measured as the highest net receivable under these contracts from a particular counter party.
4. Fair value represents mark-to-market including accrued interest.
The following tables set forth, for the periods indicated, the nature and terms of FRA and IRS.
Hedging
Benchmark Type
MIBOR
Fixed receivable v/s floating payable
USD LIBOR Fixed receivable v/s floating payable
Total
` in million
At March 31, 2023
At March 31, 2022
Notional
principal
240,890.0
123,255.0
364,145.0
No. of
deals
47
15
62
Notional
principal
93,890.0
162,953.9
256,843.9
No. of
deals
13
19
32
193
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Trading
Benchmark
Type
` in million
At March 31, 2023
At March 31, 2022
Notional
principal
No. of
Deals
Notional
principal
No. of deals
AUD LIBOR
Fixed receivable v/s floating payable
-
-
510.7
Bond yield
Sell FRA
78,803.6
224
13,587.9
AUD LIBOR
Floating receivable v/s fixed payable
CADCDOR
Floating receivable v/s Fixed payable
CADCDOR
Fixed receivable v/s Floating payable
EURESTR
Fixed receivable v/s Floating payable
EURESTR
Floating receivable v/s Fixed payable
EURIBOR
Fixed receivable v/s Floating payable
EURIBOR
Floating receivable v/s Fixed payable
GBPSONIA
Floating receivable v/s Fixed payable
GBPSONIA
Fixed receivable v/s Floating payable
INBMK
INBMK
Floating receivable v/s Fixed payable
Fixed receivable v/s Floating payable
JPYTONAR
Floating receivable v/s Fixed payable
JPYTONAR
Fixed receivable v/s Floating payable
-
678.3
678.3
38,625.8
41,076.1
11,849.0
13,697.0
8,577.5
5,209.4
1,000.0
1,000.0
5,396.9
5,852.0
-
1
1
15
19
30
20
16
11
1
1
7
7
266.7
807.8
793.9
7,040.8
7,840.9
11,827.3
13,727.9
7,498.9
7,086.2
1,000.0
1,000.0
5,283.0
6,898.9
Fixed receivable v/s Floating payable
9,624,496.5
14,850 11,018,340.0
Floating receivable v/s Fixed payable
9,754,197.8
14,677 11,014,588.4
Fixed receivable v/s Floating payable
320,642.7
Floating receivable v/s Fixed payable
251,471.2
MODMIFOR
Floating receivable v/s Fixed payable
101,000.0
MODMIFOR
Fixed receivable v/s Floating payable
172,100.0
OTHERS
Fixed receivable v/s Fixed payable
T-BILL
T-BILL
Floating receivable v/s Fixed payable
Fixed receivable v/s Floating payable
USD SOFR v/s
USD LIBOR
Floating receivable v/s Floating
payable
6,289.7
26,257.7
5,104.9
823.9
446
257
125
191
6
9
2
1
532,286.6
423,358.0
-
-
5,379.1
26,239.0
10,139.8
760.0
MIBOR
MIBOR
MIFOR
MIFOR
USDLIBOR
Fixed receivable v/s Floating payable
449,837.7
USDLIBOR
Floating receivable v/s Fixed payable
612,120.6
411
532
601,931.2
809,797.5
USDLIBOR
Floating receivable v/s Floating payable
177,610.5
40
171,935.3
USDSOFR
Fixed receivable v/s Floating payable
892,093.9
USDSOFR
Floating receivable v/s Fixed payable
1,001,813.0
354
418
98,044.4
129,871.2
1
27
6
2
1
3
3
30
21
15
13
1
1
6
9
16,676
16,789
749
429
-
-
5
9
2
1
577
734
44
54
79
Total
23,608,304.0
32,672 24,927,841.4
36,287
194
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.) The following tables set forth, for the periods indicated, the nature and terms of CCS.
Trading
Benchmark
Type
EUR ESTR v/s
USD SOFR
EURIBOR
EURIBOR
EURIBOR v/s
USD LIBOR
EURIBOR v/s
USD LIBOR
EURIBOR v/s
USD LIBOR
EURIBOR v/s
USD SOFR
EURIBOR v/s
USD SOFR
GBP SONIA v/s
USD LIBOR
GBP SONIA v/s
USD LIBOR
GBP SONIA v/s
USD SOFR
GBP SONIA v/s
USD SOFR
JPY TONAR v/s
USD LIBOR
JPY TONAR v/s
USD LIBOR
MIFOR v/s USD
LIBOR
OTHERS
SGD LIBOR v/s
USD LIBOR
SGD LIBOR v/s
USD LIBOR
USD LIBOR
USD LIBOR
USD SOFR
USD SOFR
USD SOFR v/s
EURIBOR
EUR ESTR v/s
USD SOFR
Total
Floating receivable v/s Floating
payable
Fixed Receivable v/s Floating payable
Fixed payable v/s Floating receivable
Floating receivable v/s Floating
payable
Floating payable v/s Floating
receivable
Fixed receivable v/s Floating
payable
Floating payable v/s Floating
receivable
Floating 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
Floating receivable v/s Floating
payable
Floating payable v/s Floating
receivable
Floating receivable v/s Floating
payable
Fixed receivable v/s Fixed payable
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 payable v/s Floating receivable
Fixed receivable v/s Floating payable
Floating receivable v/s Floating
payable
Floating payable v/s Floating
receivable
1. Benchmark indicates floating leg of the fixed v/s floating CCS.
` in million
At March 31, 2023
At March 31, 2022
Notional
principal
No. of deals
Notional
principal
No. of deals
1,863.0
6,374.3
500.0
19,505.6
17,888.5
-
16,434.0
541.0
1,758.5
1,953.2
1,971.3
2,868.1
-
369.9
2
26
1
9
5
-
1
2
3
5
2
2
-
1
-
5,351.3
-
17,378.2
18,421.3
879.3
-
-
1,720.6
2,349.2
536.1
-
568.5
276.4
4,626.3
190,876.2
3
174
4,626.3
182,079.5
-
-
454.8
-
135,962.5
74,179.5
35,379.4
33,221.7
16,434.0
1,922.9
564,629.9
-
78
57
15
25
1
151.6
169,718.5
93,076.2
750.0
-
-
1
413
-
498,337.7
-
25
-
8
9
1
-
-
3
5
1
-
2
2
3
193
1
1
140
79
1
-
-
-
474.0
195
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
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Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Following table sets forth, for the period indicated, NPA ratios of the Bank.
Particulars
Gross NPA to Gross Advances
Net NPA to Net Advances
Provision coverage ratio
At
March 31, 2023
At
March 31, 2022
2.87%
0.51%
82.8%
3.76%
0.81%
79.2%
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. At March 31,
2023, the Bank classified certain loans as NPAs at overseas branches amounting to ` 8,229.0 million (at March 31,
2022: ` 4,547.6) as per the requirement of these guidelines and made a provision of ` 4,623.0 million (year ended
March 31, 2022: ` 3,975.6 million) on these loans.
18. 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 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, 2022 and for the year
ended March 31, 2021
19. General provision on standard assets
The general provision on standard assets held by the Bank at March 31, 2023 was ` 47,022.4 million (March 31,
2022: ` 40,942.9 million). The Bank made general provision on standard assets amounting to ` 5,795.6 million
during the year ended March 31, 2023 (year ended March 31, 2022: ` 4,492.5 million). General provision on standard
assets is made on global loan portfolio as below:
•
Farm credit to agricultural activities, individual housing loans sanctioned on or after June 7, 2021 and advances
to Small and Micro Enterprises (SMEs) sectors at 0.25%, advances to Commercial Real Estate sector at 1.00%
and to Commercial Real Estate – Residential Housing Sector at 0.75%, all other loans and advances at 0.40%
• At overseas branches, provision is made at higher of RBI and host country guidelines
Credit exposures computed as per the current marked-to-market (MTM) value of the contract arising
on account of the interest rate and foreign exchange derivatives, credit default swaps and gold exposures,
provision is made at the rate applicable to respective categories of advances
Loans and advances to entities with unhedged foreign currency exposures, provision is made ranging from
0.10% to 0.80% depending on likely loss due to exchange rate movement
Exposures to the wholly owned subsidiaries of the overseas subsidiaries of Indian companies at 2.00%
Standard advances to stress sectors at 2.00%, based on evaluation of risk and stress in various sectors as per
the Board approved policy of the Bank
Incremental exposure of the banking system in excess of Normally Permitted Lending Limit (NPLL) on borrowers
classified as specified borrower at 3.00%
•
•
•
•
•
198
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
20. Priority Sector Lending Certificates (PSLCs)
The following table sets forth, for the periods indicated, details of PSLCs purchased and sold by the Bank.
Category
General
Agriculture
Micro enterprise
Total
` in million
Year ended March 31, 2023
Year ended March 31, 2022
Bought
Sold
Bought
Sold
-
454,245.0
-
655,300.0
704,965.0
11,500.0
716,465.0
-
673,065.0
-
287,005.0
741,250.0
42,060.0
359,100.0
715,125.0
1,014,400.0
21. Sale and acquisition of loans
a)
Details of loan not in default sold/acquired by the Bank as per Master Direction - Reserve Bank of India (Transfer
of Loan Exposures) Directions, 2021 dated September 24, 2021.
1.
The following table sets forth, for the period indicated, details of loans not in default sold/acquired under
assignment:
Particulars
Amount of loan
Weighted average residual maturity
(in years)
Weighted average holding period of
the originator (in years)
Retention of beneficial economic
interest by the originator
` in million
Year ended March 31, 2023
Year ended March 31, 2022
Loans acquired
Loans sold Loans acquired
Loans sold
94,688.2
1,875.0
45,127.9
4,386.9
5.63
1.63
0.48
0.01
5.30
1.64
3.74
2.08
88,563.8
1,625.0
89,219.6
7,745.3
Tangible security coverage (times)
4.04
-
1.20
1.20
1. In addition, the Bank acquired unfunded loans amounting to ` 3,278.4 million (year ended March 31, 2022: ` 2,840.0
million) and sold unfunded loans amounting to ` 6,540.0 million (year ended March 31, 2022: ` 1,250.0 million) for
year ended March 31, 2023 through novation.
2. In addition, no loans were acquired by the Bank during the year ended March 31, 2023 through risk participation in
the secondary market (year ended March 31, 2022: ` 2,192.4 million).
2.
The following table sets forth, for the period indicated, rating-wise distribution of the loans sold/acquired
under assignment:
Rating
IND A-, A, A+
CARE A-
Moody’s B1
ICRA A-
Crisil A+, AA, A
Care BBB
1. Excluding retail and other unrated loans
Year ended March 31, 2023
Year ended March 31, 2022
Loans acquired
Loans sold Loans acquired
Loans sold
` in million
9,260.2
-
5,998.4
5,000.0
6,410.0
838.0
-
-
-
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1,875.0
-
-
-
1,136.9
-
-
-
493.8
998.3
-
-
2,894.8
-
199
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
b) Details of stressed loans sold/acquired by the Bank.
1.
The following table sets forth, for the period indicated, details of stressed loans classified as NPA sold by
the Bank:
Particulars
` in million, except number of accounts
Year ended March 31, 2023
Year ended March 31, 2022
To ARCs
To permitted
transferees
To ARCs
To permitted
transferees
Number of accounts
9
1
4
3
Aggregate principal outstanding of
loans transferred2
Weighted average residual tenor of
the loans transferred3
Net book value of loans transferred
(at the time of transfer)4
Aggregate consideration
Additional consideration realized in
respect of accounts transferred in
earlier years
3,045.4
30.2
3,302.1
1,046.5
-
123.8
1,606.5
-
-
15.7
-
-
244.8
1,966.3
188.6
1,164.1
-
-
-
-
1. Excess provision reversed in profit and loss account due to sale of NPAs to ARCs was, ` 1,482.7 million and to
other permitted transferees was ` 15.7 million (year ended March 31, 2022: ARCs ` 1,721.5 million and permitted
transferees ` 975.5 million).
2. Net of write-off.
3. For NPAs, the Bank issues loan recall notice and initiates legal proceedings for recovery, due to which the weighted
average residual tenor is not applicable.
4. Net of write-off and provisions.
2.
3.
The Bank has not sold/acquired loan classified as Special Mention Account (SMA) during the year ended
March 31, 2023 (year ended March 31, 2022: Nil).
The Bank has not acquired non-performing loans during the year ended March 31, 2023 (year ended
March 31, 2022: Nil).
4. The following table sets forth, for the period indicated, rating-wise distribution of SRs held by the bank.
Rating
NAV estimate %
RR1
RR2
RR3
RR4
RR5
Above 100%
Above 75% upto 100%
Above 50% upto 75%
Above 25% upto 50%
Upto 25%
Total
` in million
At
March 31, 2023
At
March 31, 2022
4,286.0
1,615.4
2,681.1
1,507.8
6,002.2
6,798.9
-
4,680.4
4,538.6
2,009.7
16,092.5
18,027.6
1. Amount represents net of provisions.
2. Additionally, the Bank holds, marked-to-market loss of ` 4,627.3 million (March 31, 2022: ` 3,660.4 million) and
additional provision of ` 9,353.0 million (March 31, 2022: ` 6,293.3 million) at March 31, 2023.
200
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
22. Securitisation
Following table sets forth, for the period indicated, details of securitisation of standard assets of the Bank
Sr.
No.
1.
2.
3.
Particulars
Number of SPVs sponsored by the bank for securitisation
transactions during the year
Total a) No. and b) amount of securitised loans as per books of the
SPVs sponsored by the bank during the year
Total amount of exposures retained by the Bank to comply with
Minimum Retention Requirement (MRR) during the year
a) Off-balance sheet exposures
•
•
First loss
Others
b) On-balance sheet exposures
First loss
•
• Others
4.
Amount of exposure to securitisation transactions other than MRR
during the year
Off-balance sheet exposures
a) Exposure to own securitisation
First loss
•
• Others
b) Exposure to third party securitisation
First loss
•
• Others
On-balance sheet exposures
a) Exposure to own securitisation
First loss
•
• Others
b) Exposure to third party securitisation
First loss
•
• Others
5.
6.
Sale consideration received for the securitised assets and gain/loss
on sale on account of securitization1
Outstanding amount of services provided by way of:
•
•
• post-securitisation asset servicing
credit enhancement2
liquidity support
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
941.2
-
269.3
-
-
-
-
-
-
-
-
-
-
3,345.9
209.7
-
4,064.9
209.7
-
201
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Sr.
No.
Particulars
7.
Performance of facilities provided
a) First loss credit facility
• Amount paid (0.00%)4
• Repayment received (0.00%)4
• Outstanding amount
b) Second loss credit facility
c)
• Amount paid
• Repayment received
• Outstanding amount2
Liquidity facility
• Amount paid (0.07%)4,5
• Repayment received (0.07%)4,5
• Outstanding amount
8. Average default rate of portfolios observed at the year end
a) MBS deals (cumulative in %)
b) ABS deals (cumulative in %)
9. Amount and number of additional/top up loan given on same
underlying loans.
a) MBS deals
• Gross Amount
• Count
b) ABS deals
• Gross Amount
• Count
10.
Investor complaints
(a) Directly/Indirectly received and;
(b) Complaints outstanding
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
-
-
734.9
-
-
2,611.0
0.13
0.13
209.7
1.4
-
56.3
86
-
-
-
-
-3
-3
734.9
-
-
3,330.0
- 3
0.2
209.7
1.5
-
75.8
115
-
-
-
-
1. Includes gain/(loss) on deal closures, gain amortised during the year and expenses related to utilisation of credit enhancement
for all the outstanding deals.
2. Includes outstanding credit enhancement in the form of guarantees for third party originated securitisation transactions
amounting to ` 1,920.0 million (for the year ended March 31, 2022: ` 2,639.0 million)
3. Insignificant amount
4. Percentage has been derived based on opening outstanding balance of the facility.
5. For the year ended March 31, 2023, amount paid: 0.07% (for the year ended March 31, 2022: 0.02%) and repayment received:
0.07% (for the year ended March 31, 2022: 0.08%)
202
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
23. Accounts restructured under Micro, Small and Medium Enterprises (MSME) sector
The following table sets forth, for the periods indicated, the details of accounts restructured under MSME sector
under RBI guidelines issued in January 2019 and subsequent changes thereafter.
` in million, except number of accounts
At March 31, 2023
At March, 2022
Number of accounts
restructured
1,908
Amount
outstanding
19,669.8
Number of accounts
restructured
2,500
Amount
outstanding
28,181.8
24. Resolution of stressed assets
During the year ended March 31, 2023, the Bank has implemented resolution plan for seven borrowers amounting
to ` 19,286.3 million (March 31, 2022: five borrowers for ` 10,365.3 million) under the prudential framework for
stressed assets issued by RBI on June 7, 2019.
25. Resolution Framework for Covid-19 related Stress
I.
The following table sets forth, details of resolution plans implemented under the Resolution Framework for
Covid-19 related stress of individuals and small borrowers as per RBI circular dated May 5, 2021 (Resolution
Framework 2.0):
Type of borrower
` in million, except number of accounts
For six months ended March 31, 2023
Exposure to
accounts classified
as Standard
consequent to
implementation
of resolution plan
– at September,
2022 (A)
Of (A),
aggregate
debt that
slipped into
NPA during six
month ended
March 31,
20231
Of (A)
amount
written
off during
six month
ended
March 31,
2023
Of (A)
amount
paid by the
borrowers
during six
month ended
March 31,
20232
Exposure
to accounts
classified as
Standard
consequent to
implementation
of resolution plan
at March 31, 2023
Personal Loans3
Corporate persons4
Of which MSMEs
Others
Total
24,422.2
17,499.5
-
1,707.7
7,887.3
-
6,113.0
226.2
48,034.7
9,821.2
75.9
-
-
10.3
86.2
3,106.7
1,503.2
-
199.2
4,809.1
19,607.8
8,109.0
-
5,687.6
33,404.4
1. Includes cases which have been written off during the period.
2. Net of increase in exposure during the period.
3. Includes various categories of retail loans.
4. As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016
203
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Type of borrower
` in million, except number of accounts
For the six months ended September 30, 2022
Exposure to
accounts classified
as Standard
consequent to
implementation of
resolution plan –
at March 31, 2022
(A)
Of (A),
aggregate
debt that
slipped into
NPA during six
month ended
September 30,
20221
Of (A)
amount
written off
during six
month ended
September
30, 2022
Of (A) amount
paid by the
borrowers
during six
month ended
September
30, 20222
Exposure to
accounts classified
as Standard
consequent to
implementation of
resolution plan at
September
30, 2022
Personal Loans3
Corporate persons
Of which, MSMEs
Others
Total
31,154.8
17,037.0
-
7,677.3
55,869.1
3,569.0
260.4
-
-
747.7
4,316.7
-
-
41.4
301.8
3,163.6
(462.5)
-
816.6
3,517.7
24,422.2
17,499.5
-
6,113.0
48,034.7
1. Includes cases, which have been written off during the period.
2. Net of increase in exposure during the period.
3. Includes various categories of retail loans
Type of borrower
For the year March 31, 2022
Exposure to
accounts classified
as Standard
consequent to
implementation of
resolution plan –
at September 30,
2021 (A)1
Of (A),
aggregate
debt that
slipped into
NPA during six
month ended
March 31,
20222
Of (A)
amount
written off
during six
month ended
March 31,
2022
Of (A) amount
paid by the
borrowers
during six
month ended
March 31,
20223
Exposure to
accounts classified
as Standard
consequent to
implementation of
resolution plan at
March 31, 2022
Personal Loans4
43,275.3
6,382.4
232.3
5,738.1
31,154.8
Corporate
persons5
Of which MSMEs
Others
Total
29,001.8
-
8,634.2
80,911.3
-
-
-
-
-
11,964.8
17,037.0
1,456.3
7,838.7
17.4
(499.4)
249.7
17,203.5
-
7,677.3
55,869.1
1. Includes cases where request received till September 30, 2021 and implemented subsequently.
2. Includes cases which have been written off during the period.
3. Net of increase in exposure during the period.
4. Includes various categories of retail loans.
5. As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016
204
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
26. 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
` in million except percentage
At
March 31, 2023
At
March 31, 2022
410,099.2
560,155.0
3.47%
5.26%
` in million except percentage
At
March 31, 2023
At
March 31, 2022
Total advances to 20 largest borrowers (including banks)
2,023,084.9
1,908,174.2
Advances to 20 largest borrowers as a percentage of total
advances of the Bank
10.28%
11.84%
1. Represents credit exposure (funded and non-funded) including derivatives exposures as per RBI guidelines on exposure
norms.
Concentration of exposures1
` in million except percentage
At
March 31, 2023
At
March 31, 2022
Total exposure to 20 largest borrowers/customers (including banks)
2,069,491.6
2,002,175.1
Exposures to 20 largest borrowers/customers as a percentage of
total exposure of the Bank
10.22%
12.03%
1. Represents credit and investment exposures as per RBI guidelines on exposure norms.
Concentration of NPAs
Total exposure1 to top 20 NPA accounts
Exposure of 20 largest NPA as a percentage of total Gross NPAs.
` in million except percentage
At
March 31, 2023
At
March 31, 2022
159,988.5
42.71%
175,706.5
42.30 %
1. Represents credit and investment exposures as per RBI guidelines on exposure norms.
205
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
(II) Sector-wise advances
S
No.
Particulars
` in million, except percentages
At March 31, 2023
Outstanding
advances
Gross NPAs1 % of gross NPAs1
to total advances
in that sector
A.
1.
2.
3.
4.
B.
1.
2.
3.
4.
Priority sector
Agriculture and allied activities
Advances to industries sector eligible as
priority sector lending of which:
Services
of which:
Transport operators
Wholesale trade
Personal loans
of which:
Housing
Sub-total (A)
Non-priority sector
Agriculture and allied activities
Advances to industries sector
of which:
Infrastructure
Services
of which:
Wholesale Trade
Commercial real estate
Financial Intermediation
Personal loans2
of which:
Housing
Vehicle/Auto Loans
Sub-total (B)
Total (A)+(B)
630,585.6
758,377.7
29,272.7
5,991.2
1,038,753.5
12,951.7
150,076.4
234,252.1
414,876.7
402,748.5
2,842,593.5
2,642.6
2,972.6
6,486.0
6,427.1
54,701.7
-
-
1,699,823.5
157,301.1
480,462.6
1,878,763.6
256,179.9
620,974.9
764,400.9
4,025,346.4
1,759,930.0
434,159.6
34,621.6
36,837.5
6,881.6
13,921.0
744.1
51,020.5
17,044.0
6,465.4
7,603,933.5
245,159.1
10,446,527.0
299,860.7
4.64%
0.79%
1.25%
1.76%
1.27%
1.56%
1.60%
1.92%
-
9.25%
7.21%
1.96%
2.69%
2.24%
0.10%
1.27%
0.97%
1.49%
3.22%
2.87%
1. Represents loans and advances.
2. Excludes commercial business loans and dealer funding.
3. Sub-sectors have been disclosed where advances exceed 10% of total advances in that sector at reporting date.
206
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Sr.
No.
Particulars
A.
1.
2.
3.
4.
B.
1.
2.
3.
4.
Priority sector
Agriculture and allied activities
Advances to industries sector eligible as
priority sector lending
Services
of which:
Transport operators
Wholesale trade
Personal loans
of which:
Housing
Sub-total (A)
Non-priority sector
Agriculture and allied activities
Advances to industries sector
of which:
Infrastructure
Basic metal and metal products
Services
of which:
Commercial real estate
Financial Intermediation
Wholesale Trade
Personal loans2
of which:
Housing
Vehicle/Auto Loans
Sub-total (B)
Total (A)+(B)
` in million, except percentages
At March 31, 2022
Outstanding
advances
Gross NPAs1 % of gross NPAs1
to total advances
in that sector
561,419.3
29,726.4
611,332.1
967,536.0
154,289.1
143,318.9
388,528.4
381,591.5
2,528,815.8
8,836.5
20,461.2
5,050.1
1,665.5
8,479.9
8,280.6
67,504.0
5.29%
1.45%
2.11%
3.27%
1.16%
2.18%
2.17%
2.67%
-
1,652,669.8
-
180,433.1
-
10.92%
498,441.6
183,179.5
1,518,441.2
453,678.9
683,966.0
191,622.1
3,156,836.6
1,527,478.5
325,837.0
6,327,947.6
8,856,763.4
48,380.9
5,901.4
38,150.3
13,600.2
1,033.8
6,661.8
46,861.8
21,193.0
5,171.5
265,445.2
332,949.2
9.71%
3.22%
2.51%
3.00%
0.15%
3.48%
1.48%
1.39%
1.59%
4.19%
3.76%
1. Represents loans and advances.
2. Excludes commercial business loans and dealer funding.
3. Sub-sectors have been disclosed where advances exceed 10% of total advances in that sector at reporting date.
207
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
(III) Overseas assets, NPAs1 and revenue
Total assets2
Total NPAs (net)
Total revenue2
1.
Represents loans and advances.
Year ended
March 31, 2023
731,796.0
3,790.9
32,912.3
` in million
Year ended
March 31, 2022
865,806.3
6,236.0
18,399.6
2.
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.
(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, 2023
1.
The following table sets forth, the names of SPVs/trusts sponsored by the Bank/subsidiaries which are consolidated.
Sr. No. Name of the SPV sponsored1
A.
Domestic
1. ICICI Strategic Investments Fund2
2. India Advantage Fund-III2
3. India Advantage Fund-IV2
B.
Overseas
None
1. SPVs/Trusts which are consolidated and set-up/sponsored by the Bank/subsidiaries of the Bank.
2. The nature of business of the above entities is venture capital fund.
2. There are no SPVs/trusts which are not sponsored by the Bank/subsidiaries and are consolidated.
27. Intra-group exposure
The following table sets forth, for the periods indicated, the details of intra-group exposure.
Sr.
No.
1.
2.
3.
4.
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
Details of breach of limits on intra-group exposures and regulatory
action thereon, if any
` in million
At
March 31, 2023
At
March 31, 2022
176,612.2
176,612.2
169,408.4
169,408.0
0.87%
1.02%
Nil
Nil
208
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
28. Exposure to sensitive sectors
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.
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
1.
Particulars
Direct investment in equity shares, convertible bonds, convertible
debentures and units of equity-oriented mutual funds, the corpus
of which is not exclusively invested in corporate debt
Advances against shares/bonds/debentures or other securities or
on clean basis to individuals for investment in shares (including
IPOs/ESOPs), convertible bonds, convertible debentures and units
of equity-oriented mutual funds
Advances for any other purposes where shares or convertible
bonds or convertible debentures or units of equity oriented mutual
funds are taken as primary security
Advances for any other purposes to the extent secured by the
collateral security of shares or convertible bonds or convertible
debentures or units of equity oriented mutual funds i.e. where the
primary security other than shares/convertible bonds/convertible
debentures/units of equity oriented mutual funds does not fully
cover the advances
Secured and unsecured advances to stockbrokers and guarantees
issued on behalf of stock brokers and market makers
` in million
At
March 31, 2023
At
March 31, 2022
48,803.9
46,902.8
1,394.3
1,545.2
23,224.9
22,361.0
-
-
162,337.0
123,510.6
Bridge loans to companies against expected equity flows/issues
-
-
All exposures to venture capital funds (both registered and
unregistered)
Others
Total exposure to capital market1
14,440.7
10,181.7
-
-
250,200.8
204,501.3
At March 31, 2023, excludes investment in equity shares of ` 22,588.5 million (March 31, 2022: ` 21,779.6
million) exempted from the regulatory ceiling, out of which investments of ` 4,650.0 million (March 31, 2022:
` 3,054.6 million) were acquired due to conversion of debt to equity during restructuring process under RBI
circular dated June 7, 2019 on “Prudential Framework for Resolution of Stressed Assets” and investments of
` 16,330.2 million (March 31, 2022: ` 17,116.6 million) were acquired under other resolution schemes of RBI.
209
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
The following table sets forth, for the periods indicated, the summary of exposure to real estate sector.
Sr.
No.
I
Particulars
Direct exposure
1. Residential mortgages
of which: individual housing loans eligible for priority sector
advances
2. Commercial real estate1
3.
Investments in Mortgage Backed Securities (MBS) and other
securitised exposure
a.
Residential
b. Commercial real estate
II
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
` in million
At
March 31, 2023
At
March 31, 2022
4,405,419.9
3,434,920.2
3,641,419.7
2,897,232.4
418,496.4
940,828.6
29,671.1
25,420.4
4,250.7
191,342.0
397,578.1
713,574.3
30,613.0
26,310.2
4,302.8
162,163.3
191,342.0
4,596,761.9
162,163.3
3,803,583.0
1. Commercial real estate exposure includes 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.
29. Factoring business
At March 31, 2023, the outstanding receivables acquired by the Bank under factoring business were ` 54,281.8
million (March 31, 2022: ` 39,289.5 million) which are reported under ‘Bills purchased and discounted’ in Schedule
9 – Advances of the balance sheet.
30. 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 2.74% (March 31, 2022: 3.53%). As the net funded exposure to United States of America
at March 31, 2023, exceeded 1% of total funded assets (March 31, 2022: United States of America and United
Kingdom), the Bank held a provision of ` 365.0 million on country exposure at March 31, 2023 (March 31, 2022:
` 580.0 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
210
Exposure (net) at
March 31, 2023
Provision held at
March 31, 2023
Exposure (net)
at March 31, 2022
Provision held at
March 31,2022
` in million
1,023,324.6
225,028.2
30,962.3
1,522.5
10,899.2
118.0
-
1,291,854.8
365.0
-
-
-
-
-
-
365.0
1,109,785.2
319,041.5
3,540.2
13,686.9
134.7
-
-
1,446,188.5
580.0
-
-
-
-
-
-
580.0
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
31. 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, 2023 (March 31, 2022: Nil).
32. 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’. As per the Bank’s policy, annual revaluation is carried out
through external valuers, using methodologies such as direct sales comparison method and income capitalisation
method and the incremental amount has been taken to revaluation reserve. The revalued amount at March 31, 2023
was ` 54,723.8 million (March 31, 2022: ` 57,269.6 million) as compared to the historical cost less accumulated
depreciation of ` 24,099.2 million (March 31, 2022: ` 25,313.0 million).
The revaluation reserve is not available for distribution of dividend.
33. 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
34. Debt assets swap transactions
` in million
At
March 31, 2023
At
March 31, 2022
29,157.1
4,466.7
(2,189.2)
(22,631.2)
8,803.4
25,543.0
3,922.1
(308.1)
(21,220.3)
7,936.7
During the year ended March 31, 2023, the Bank did not acquire any non-banking assets under debt-asset swap
transactions (year ended March 31, 2022: Nil).
During the year ended March 31, 2023, the Bank has not sold non-banking assets (year ended March 31, 2022:
` 563.6 million, which were fully provided and sold for consideration of ` 430.5 million)
The net book value of non-banking assets acquired in satisfaction of claims by the Bank outstanding at March 31, 2023
amounted to Nil (March 31, 2022: Nil), net of provision held of ` 29,011.8 million (March 31, 2022: ` 29,011.8 million).
35. Lease
I. Assets taken under operating lease
Operating leases primarily comprise office premises which are renewable at the option of the Bank.
i.
The following table sets forth, for the periods indicated, the details of liability for premises taken on non-
cancellable operating leases.
Particulars
Not later than one year
Later than one year and not later than five years
Later than five years
Total
` in million
At
March 31, 2023
At
March 31, 2022
298.9
180.0
7.1
486.0
102.7
67.3
9.9
179.9
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Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
ii.
Total of non-cancellable lease payments recognised in the profit and loss account for the year ended March 31,
2023 is ` 552.6 million (year ended March 31, 2022 ` 283.6 million).
II. Assets taken under finance lease
The following table sets forth, for the periods indicated, the details of assets taken on finance leases.
Particulars
1. Total Minimum lease payments outstanding
Not later than one year
Later than one year and not later than five years
Later than five years
Total
2.
Interest cost payable
Not later than one year
Later than one year and not later than five years
Later than five years
Total
3. Present value of minimum lease payments payable(A-B)
Not later than one year
Later than one year and not later than five years
Later than five years
Total
` in million
At
March 31, 2023
At
March 31, 2022
271.3
596.1
14.9
882.3
70.0
83.3
0.5
153.8
201.3
512.8
14.4
728.5
269.2
792.3
76.4
1,137.9
92.5
146.8
3.8
243.1
176.7
645.5
72.6
894.8
36. Description of contingent liabilities
The following table describes the nature of contingent liabilities of the Bank.
Sr.
no.
1.
2.
3.
Contingent liability
Brief Description
Claims against
the Bank, not
acknowledged as
debts
Liability for partly
paid investments
Liability on account
of outstanding
forward exchange
contracts
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.
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Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Contingent liability
Brief Description
Sr.
no.
4.
5.
Guarantees
given on behalf
of constituents,
acceptances,
endorsements and
other obligations
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 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.
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 amount transferred to RBI under the
Depositor Education and Awareness Fund (S), commitment towards contribution to
venture fund, the amount that the Bank is obligated to pay under capital contracts
and letter of undertaking and indemnity letters. 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.
Particulars
Income from selling life insurance policies
Income from selling non-life insurance policies
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
3,821.2
1,030.6
5,775.8
901.9
38. Marketing & Distribution
The following table sets forth, for the periods indicated, income received from marketing and distribution function.
Particulars
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
Income received in respect of the marketing and distribution
4,928.2
4,721.6
1. Includes referral fees, commission and fees received on distribution/cross selling of various products including mutual funds.
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Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
39. 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
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
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, 2023
18,661.0
151.7
1,150.6
758.2
(2,192.6)
(99.8)
18,429.1
19,843.3
1,522.0
(682.0)
(2,436.2)
42.9
(99.8)
18,190.2
18,190.2
(18,429.1)
` in million
Year ended
March 31, 2022
20,265.6
204.6
1,145.3
(546.5)
(2,289.8)
(118.2)
18,661.0
21,162.2
1,620.7
(331.9)
(2,544.2)
54.7
(118.2)
19,843.3
19,843.3
(18,661.0)
-
(238.9)
151.7
1,150.6
(1,522.0)
1,440.2
243.6
(401.9)
1,062.2
840.0
1,000.0
41.74%
48.30%
7.08%
2.87%
7.30%
1.50%
8.00%
7.50%
(401.9)
780.4
204.6
1,145.3
(1,620.7)
(214.6)
254.4
97.1
(133.9)
1,288.8
2,000.0
46.69%
46.45%
6.46%
0.40%
6.30%
1.50%
7.00%
7.50%
1. Included in line item ‘Payments to and provision for employees’ of Schedule-16 Operating expenses.
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Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
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
Gratuity
Year ended
March 31, 2023
18,190.2
(18,429.1)
Year ended
March 31, 2022
19,843.3
(18,661.0)
Year ended
March 31, 2021
21,162.2
(20,265.6)
Year ended
March 31, 2020
16,972.1
(19,914.3)
Year ended
March 31, 2019
15,438.8
(16,540.3)
` in million
-
(238.9)
(401.9)
780.4
(304.8)
591.8
-
-
(2,942.2)
(1,101.5)
(682.0)
(331.9)
521.9
741.1
(125.9)
805.8
809.0
613.4
2,186.1
1,038.6
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)
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
13,590.0
12.2
13,602.2
1,342.3
963.0
1,178.0
-
34.5
(1,553.6)
15,566.4
13,577.4
985.5
(499.4)
1,375.9
34.5
(1,553.6)
13,920.3
13,920.3
(15,566.4)
-
(1,646.1)
12,842.8
6.0
12,848.8
1,294.5
875.8
(112.0)
-
1.9
(1,319.0)
13,590.0
12,934.8
945.7
(64.9)
1,078.9
1.9
(1,319.0)
13,577.4
13,577.4
(13,590.0)
-
(12.6)
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Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Particulars
Cost1
Service cost
Interest cost
Expected return on plan assets
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
Equity
Others
Assumptions
Discount rate
Salary escalation rate
Estimated rate of return on plan assets
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
1,342.3
963.0
(985.5)
1,677.4
-
12.2
-
3,009.4
486.1
1,500.0
-
33.40%
47.63%
16.71%
2.26%
7.35%
8.00%
7.50%
1,294.5
875.8
(945.7)
(47.1)
-
6.0
-
1,183.6
880.7
800.0
-
29.29%
47.96%
20.65%
2.10%
6.85%
7.00%
7.50%
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
Year ended
March 31, 2023
Year ended
March 31, 2022
Year ended
March 31,2021
Year ended
March 31, 2020
Year ended
March 31, 2019
13,920.3
13,577.4
12,934.8
10,877.1
9,821.2
Defined benefit obligations
(15,566.4)
(13,590.0)
(12,842.8)
(11,938.7)
(10,114.4)
` in million
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
-
(1,646.1)
-
(12.6)
-
92.0
-
-
(1,061.6)
(293.2)
(499.4)
(64.9)
720.2
(125.0)
(60.3)
731.6
368.0
(484.5)
181.3
118.4
The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.
216
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
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, 2023 (year ended March 31, 2022: 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.
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
Amount not recognised as asset (limit in para 59(b) od AS-15 on
‘employee benefits’)1
Asset/(liability)
Cost2
Service cost
Interest cost
Expected return on plan assets
Actuarial (gain)/loss
Effect of the limit in Para 59(b)1
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, 2023
43,128.7
2,458.4
3,024.7
862.8
4,163.2
934.6
(5,502.7)
49,069.7
44,339.6
3,741.0
(329.0)
2,458.4
4,163.2
934.6
(5,502.7)
49,805.1
49,805.1
(49,069.7)
` in million
Year ended
March 31, 2022
39,349.2
1,972.5
2,620.3
(150.8)
3,558.4
588.8
(4,809.7)
43,128.7
39,349.2
3,434.2
246.2
1,972.5
3,558.4
588.8
(4,809.7)
44,339.6
44,339.6
(43,128.7)
(735.4)
-
2,458.4
3,024.7
(3,741.0)
1,191.8
(475.5)
2,458.4
3,412.0
2,655.0
55.17%
35.12%
1.08%
8.63%
7.35%
7.97%
7.40%
8.01%
8.15%
(1,210.9)
-
1,972.5
2,620.3
(3,434.2)
(397.0)
1,210.9
1,972.5
3,680.4
2,110.6
53.53%
36.18%
1.22%
9.07%
6.85%
8.25%
6.85%
8.25%
8.10%
1. Pursuant to revised Guidance Note 29 on “Valuation of Interest Rate Guaranatees on Exempt Provident Funds under AS15
(Revised)” issued by the Institute of Actuaries of India on February 16, 2022, plan assets held by the PF Trust have been fair
valued. The amount represents the fair value gain on plan assets.
2. Included in line item ‘Payments to and provision for employees’ of Schedule-16 Operating expenses.
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Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Experience adjustment
Particulars
Plan assets
Year ended
March 31, 2023
Year ended
March 31, 2022
Year ended
March 31, 2021
Year ended
March 31, 2020
Year ended
March 31, 2019
49,805.1
44,339.6
39,349.2
33,424.3
28,757.5
Defined benefit obligations
(49,069.7)
(43,128.7)
(39,349.2)
(33,424.3)
(28,757.5)
` in million
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
(735.4)
(1,210.9)
-
-
-
-
-
-
-
-
(329.0)
246.3
530.5
(626.7)
11.8
476.1
(812.5)
1,467.8
(171.5)
402.6
3. Pursuant to revised Guidance Note 29 on “Valuation of Interest Rate Guaranatees on Exempt Provident Funds under AS15
(Revised)” issued by the Institute of Actuaries of India on February 16, 2022, plan assets held by the PF Trust have been fair
valued. The amount represents the fair value gain on plan assets.
The Bank has contributed ` 3,846.1 million to provident fund for the year ended March 31, 2023 (year ended March 31,
2022: ` 3,224.9 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 ` 302.0 million for the year ended March 31, 2023 (year ended March 31, 2022: ` 255.9
million) to Superannuation Fund for employees who had opted for the scheme.
National Pension Scheme (NPS)
The Bank has contributed ` 279.8 million for the year ended March 31, 2023 (year ended March 31, 2022: ` 224.8
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
Total actuarial liability
Cost1
Assumptions
Discount rate
Salary escalation rate
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
3,079.8
694.0
7.35%
8.00%
3,081.6
752.2
6.85%
7.00%
1. Included in line item ‘Payments to and provision for employees’ of Schedule-16 Operating expenses.
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Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
40. 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
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
3,278.3
12,377.7
(10,930.5)
4,725.5
2,612.6
7,877.7
(7,212.0)
3,278.3
1. The closing provision is based on the actuarial valuation of accumulated credit cards/debit cards/savings accounts reward
points.
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
41. Provisions and contingencies
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
248.0
103.3
(151.6)
199.7
172.2
214.5
(138.7)
248.0
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
1. Current
2. Deferred
Other provisions and contingencies2,3
Total provisions and contingencies
Year ended
March 31, 2023
12,995.4
(6,222.9)
` in million
Year ended
March 31, 2022
3,771.1
61,640.4
102,544.8
2,702.5
59,883.3
171,903.1
62,976.8
9,717.2
21,002.7
159,108.2
1. Includes provision towards NPA amounting to ` 10,166.1 million (March 31, 2022: ` 37,077.5 million).
2. Includes contingency provision made amounting to ` 56,500.0 million on a prudent basis during the year ended March 31, 2023
(March 31, 2022: wrote-back provision ` 250.0 million).
3. Includes general provision made towards standard assets, provision on fixed assets acquired under debt-asset swap and non-
fund based facilities.
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Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
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.
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.
42. Provision for income tax
` in million
Year ended
March 31, 2023
43,991.3
(2,700.3)
Year ended
March 31, 2022
27,527.9
16,463.4
41,291.0
43,991.3
The provision for income tax (including deferred tax) for the year ended March 31, 2023 amounted to ` 105,247.3
million (March 31, 2022: ` 72,693.9 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.
43. Deferred tax
At March 31, 2023, the Bank has recorded net deferred tax assets of ` 75,034.5 million (March 31, 2022: ` 77,732.7
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.
Deferred tax assets
Provision for bad and doubtful debts
Provision for operating expenses
Others
Total deferred tax assets
Deferred tax liabilities
Special reserve deduction
Depreciation on fixed assets
Interest on refund of taxes2
Foreign currency translation reserve2
Total deferred tax liabilities
Total net deferred tax assets/(liabilities)
` in million
At
March 31, 2023
At
March 31, 2022
104,040.7
4,026.9
8,973.7
117,041.3
36,735.9
4,449.7
206.2
615.0
42,006.8
75,034.5
104,563.5
-
8,911.3
113,474.8
30,284.3
4,043.8
168.4
1,245.6
35,742.1
77,732.7
1. Tax rate of 25.168% is applied based on the prevailing provisions of the Income tax Act, 1961.
2. These items are considered in accordance with the requirements of Income Computation and Disclosure Standards (ICDS).
220
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
44. 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 made1
Unamortised provision debited from balance in profit and loss account
under ‘Reserves and Surplus’
1. Excludes amount written off and interest reversal.
45. Proposed dividend on equity shares
` in million, except number of frauds
Year ended
March 31, 2023
6,642
3,853.9
1,570.8
Year ended
March 31, 2022
5,678
31,000.5
3,730.3
-
-
The Board of Directors at its meeting held on April 22, 2023 has recommended a dividend of ` 8 per equity share for
the year ended March 31, 2023 (year ended March 31, 2022: ` 5 per equity share). The declaration and payment of
dividend is subject to requisite approvals.
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. Subsidiaries, associates/joint ventures/other related entities
Sr. no. Name of the entity
ICICI Bank Canada
1.
ICICI Bank UK PLC
2.
ICICI Home Finance Company Limited
3.
ICICI International Limited
4.
ICICI Investment Management Company Limited
5.
ICICI Prudential Asset Management Company Limited
6.
ICICI Prudential Life Insurance Company Limited
7.
ICICI Prudential Pension Funds Management Company Limited
8.
ICICI Prudential Trust Limited
9.
ICICI Securities Holdings Inc.
10.
ICICI Securities Inc.
11.
ICICI Securities Limited
12.
ICICI Securities Primary Dealership Limited
13.
ICICI Trusteeship Services Limited
14.
ICICI Venture Funds Management Company Limited
15.
Arteria Technologies Private Limited
16.
India Advantage Fund-III
17.
India Advantage Fund-IV
18.
India Infradebt Limited
19.
ICICI Lombard General Insurance Company Limited
20.
ICICI Merchant Services Private Limited
21.
I-Process Services (India) Private Limited
22.
NIIT Institute of Finance, Banking and Insurance Training Limited
23.
ICICI Strategic Investments Fund
24.
25.
26.
27.
Comm Trade Services Limited
ICICI Foundation for Inclusive Growth
Cheryl Advisory Private Limited
Nature of relationship
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Consolidated as per Accounting
Standard (‘AS’) 21
Other related entity
Other related entity
Other related entity
221
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Key management personnel
Sr. no. Name of the Key management personnel
Relatives of the Key management personnel
1.
Mr. Sandeep Bakhshi
2.
Mr. Anup Bagchi
3.
Mr. Sandeep Batra
4.
Mr. Rakesh Jha
(w.e.f. September 2, 2022)
5.
Ms. Vishakha Mulye
(upto May 31, 2022)
Ms. Mona Bakhshi
Mr. Shivam Bakhshi
Ms. Aishwarya Bakhshi
Ms. Esha Bakhshi
Ms. Minal Bakhshi
Mr. Sameer Bakhshi
Mr. Ritwik Thakurta
Mr. Ashwin Pradhan
Ms. Radhika Bakhshi
Ms. Mitul Bagchi
Mr. Aditya Bagchi
Mr. Shishir Bagchi
Mr. Arun Bagchi
Mr. Pranav Batra
Ms. Arushi Batra
Mr. Vivek Batra
Ms. Veena Batra
Mr. Narendra Kumar Jha
Mr. Navin Ahuja
Mr. Sharad Bansal
Ms. Aparna Ahuja
Ms. Apoorva Jha Bansal
Ms. Pushpa Jha
Ms. Sanjali Jha
Ms. Swati Jha
Mr. Vivek Mulye
Ms. Vriddhi Mulye
Mr. Vighnesh Mulye
Dr. Gauresh Palekar
Ms. Shalaka Gadekar
Dr. Nivedita Palekar
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
Income from services rendered
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
222
Year ended
March 31, 2023
` in million
Year ended
March 31, 2022
884.6
448.8
432.6
3.2
6,709.3
5,365.9
1,343.4
0.0
0.0
779.4
279.3
494.1
6.0
8,748.1
7,579.2
1,168.9
0.0
0.0
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Items
Gain/(loss) on forex and derivative transactions (net)2
Subsidiaries
Associates/joint ventures/others
Dividend income
Subsidiaries
Associates/joint ventures/others
Insurance claims received
Subsidiaries
Associates/joint ventures/others
Income from shared services
Subsidiaries
Associates/joint ventures/others
Interest expense
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Expenses for services received
Subsidiaries
Associates/joint ventures/others
Insurance premium paid
Subsidiaries
Associates/joint ventures/others
Expenses for shared services and other payments
Subsidiaries
CSR related reimbursement of expenses
Associates/joint ventures/others
Purchase of investments
Subsidiaries
Investments in the securities issued by related parties
Subsidiaries
Capital Infusion by Parent
Subsidiaries
Sale of investments
Subsidiaries
Associates/joint ventures/others
Redemption/buyback of investments
Subsidiaries
Associates/joint ventures/others
Purchase of loans
Subsidiaries
Purchase of unfunded risk participation
Subsidiaries
Year ended
March 31, 2023
` in million
Year ended
March 31, 2022
(49.0)
(99.8)
50.8
17,845.6
15,498.5
2,347.1
1,809.4
1,650.0
159.4
2,568.6
2,279.4
289.2
387.8
303.0
64.9
15.3
4.6
16,446.3
745.0
15,701.3
9,521.8
6,717.7
2,804.1
646.9
646.9
4,441.1
4,441.1
16,750.8
16,750.8
-
-
2,649.9
2,649.9
56,799.5
41,334.4
15,465.1
50.0
50.0
-
20,574.6
20,574.6
-
-
45.5
8.9
36.6
18,287.9
16,294.6
1,993.3
948.9
719.5
229.4
2,225.0
1,888.9
336.1
116.4
81.4
28.8
4.8
1.4
12,941.5
647.3
12,294.2
10,189.9
7,537.2
2,652.7
456.3
456.3
2,239.2
2,239.2
8,821.6
8,821.6
2,706.8
2,706.8
-
-
20,477.8
18,967.1
1,510.7
28,683.6
28,153.6
530.0
7,296.5
7,296.5
861.1
861.1
223
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.) Items
Purchase of fixed assets
Subsidiaries
Associates/joint ventures/others
Remuneration to wholetime directors3
Key management personnel
Dividend paid
Key management personnel
Relatives of key management personnel
Value of employee stock options exercised
Key management personnel
Sale of fixed assets
Key management personnel
1. 0.0 represents insignificant amount.
Year ended
March 31, 2023
` in million
Year ended
March 31, 2022
4.9
1.5
3.4
336.6
336.6
3.8
3.1
0.7
290.6
290.6
0.2
0.2
4.8
-
4.8
262.3
262.3
2.4
2.4
0.0
394.2
394.2
-
-
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 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
Interest income
1
2
3
India Infradebt Limited
ICICI Home Finance Company Limited
ICICI Securities Primary Dealership Limited
Income from services rendered
1
2
3
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Securities Limited
Gain/(loss) on forex and derivative transactions (net)1
1
2
3
4
ICICI Securities Primary Dealership Limited
ICICI Lombard General Insurance Company Limited
ICICI Home Finance Company Limited
ICICI Bank Canada
Year ended
March 31, 2023
` in million
Year ended
March 31, 2022
419.0
317.0
116.6
3,927.8
1,192.5
858.2
124.2
50.8
(211.3)
(11.1)
488.7
241.4
14.9
5,892.2
1,032.5
1,185.4
(45.0)
36.6
74.2
(22.7)
224
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Particulars
Dividend income
1
2
3
ICICI Prudential Asset Management Company Limited
ICICI Securities Limited
ICICI Lombard General Insurance Company Limited
Insurance claims received
1
2
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
Income from shared services
1
2
3
4
5
ICICI Bank UK PLC
ICICI Securities Limited
ICICI Prudential Life Insurance Company Limited
ICICI Bank Canada
ICICI Lombard General Insurance Company Limited
Interest expense
1
ICICI Securities Limited
Expenses for services received
1
2
I-Process Services (India) Private Limited
ICICI Merchant Services Private Limited
Insurance premium paid
1
2
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
Expenses for shared services and other payments
1
ICICI Home Finance Company Limited
CSR related reimbursement of expenses
1
ICICI Foundation for Inclusive Growth
Purchase of investments
Year ended
March 31, 2023
` in million
Year ended
March 31, 2022
6,220.8
5,437.2
2,240.5
1,650.0
159.4
540.8
536.4
384.0
326.8
224.7
289.8
10,406.5
5,225.3
6,717.7
2,804.1
6,139.8
5,980.9
1,886.8
719.5
229.4
473.2
339.1
370.9
286.6
281.5
71.8
8,450.3
3,787.6
7,537.2
2,652.7
599.6
366.7
4,441.1
2,239.2
1
ICICI Securities Primary Dealership Limited
16,246.1
7,945.8
Investments in the securities issued by related parties
1
ICICI Home Finance Company Limited
Capital Infusion by Parent
-
2,706.8
1
ICICI Home Finance Company Limited
2,500.0
-
Sale of investments
1
2
3
4
ICICI Securities Primary Dealership Limited
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
India Infradebt Limited
Redemption/buyback of investments
1
2
3
ICICI Securities Limited
ICICI Bank UK PLC
ICICI Bank Canada
21,625.8
19,408.7
8,445.4
7,019.7
50.0
-
-
7,319.8
11,543.5
-
1,510.7
-
14,846.0
13,307.6
225
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.) Particulars
Arteria Technologies Private Limited
ICICI Home Finance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Bank UK PLC
ICICI Home Finance Company Limited
Mr. Sandeep Bakhshi
Mr. Anup Bagchi
Mr. Sandeep Batra
Mr. Rakesh Jha
Ms. Vishakha Mulye
Purchase of loans
1
Purchase of unfunded risk participation
1
Purchase of fixed assets
1
2
3
Remuneration to wholetime directors2
1
2
3
4
5
Dividend paid
1
2
3
4
5
Value of employee stock options exercised
1
2
3
4
Sale of fixed assets
Mr. Rakesh Jha
1
Ms. Vishakha Mulye
2
Mr. Sandeep Bakhshi
Mr. Sandeep Batra
Mr. Rakesh Jha
Mr. Shivam Bakhshi
Ms. Vishakha Mulye
Mr. Sandeep Bakhshi
Mr. Anup Bagchi
Mr. Sandeep Batra
Ms. Vishakha Mulye
Year ended
March 31, 2023
` in million
Year ended
March 31, 2022
19,290.7
6,766.5
-
3.2
1.3
0.1
95.7
86.5
85.3
45.9
23.2
1.7
0.6
0.7
0.4
N.A.
27.2
183.2
6.4
73.8
0.1
0.1
861.1
1.7
-
3.1
70.5
66.3
61.9
N.A.
63.6
0.4
0.2
N.A.
-
1.8
277.1
56.0
4.8
56.3
N.A.
-
1. 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.
2. Excludes the perquisite value on employee stock options exercised and includes performance bonus paid during
the period.
226
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
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
Investments of related parties in the Bank
Subsidiaries
Key management personnel
Relatives of key management personnel
Call/term money lent by the Bank
Subsidiaries
Payables2
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Deposits by the Bank
Subsidiaries
Investments of the Bank
Subsidiaries
Associates/joint ventures/others
Advances by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Receivables2
Subsidiaries
Associates/joint ventures/others
Guarantees/letters of credit/indemnity given by the Bank
Subsidiaries
Associates/joint ventures/others
Guarantees/letters of credit/indemnity issued by related parties
Subsidiaries
Swaps/forward contracts (notional amount)
Subsidiaries
Unfunded risk participation
Subsidiaries
1. 0.0 represents insignificant amount.
2. Excludes mark-to-market on outstanding derivative transactions.
At
March 31, 2023
24,829.0
21,913.1
2,603.0
224.6
88.3
1.2
-
1.0
0.2
6,000.0
6,000.0
3,860.5
142.1
3,717.0
0.4
1.0
1,519.9
1,519.9
94,344.5
69,772.9
24,571.6
3,280.6
3,003.2
191.3
85.7
0.4
3,633.8
2,190.4
1,443.4
2,356.5
2,293.4
63.1
12,950.3
12,950.3
10,648.9
10,648.9
953.3
953.3
` in million
At
March 31, 2022
23,987.7
20,405.8
3,424.7
125.1
32.1
50.2
45.7
2.0
2.5
-
-
3,591.0
108.3
3,482.6
0.0
0.1
628.9
628.9
93,105.0
68,623.0
24,482.0
4,767.3
4,500.2
127.7
139.1
0.3
2,836.8
1,116.0
1,720.8
6,701.4
6,642.4
59.0
9,615.0
9,615.0
55,104.5
55,104.5
879.3
879.3
227
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
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
Investments of related parties in the Bank1
Subsidiaries
Key management personnel
Relatives of key management personnel
Call/term money lent by the Bank
Subsidiaries
Payables1,2
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Deposits by the Bank
Subsidiaries
Investments of the Bank
Subsidiaries
Associates/joint ventures/others
Advances by the Bank
Subsidiaries
Associates/joint ventures/others
Key management personnel
Relatives of key management personnel
Receivables1,2
Subsidiaries
Associates/joint ventures/others
Guarantees/letters of credit/indemnity given by the Bank
Subsidiaries
Associates/joint ventures/others
Guarantees/letters of credit/indemnity issued by related parties1
Subsidiaries
Swaps/forward contracts (notional amount)
Subsidiaries
Unfunded risk participation1
Subsidiaries
Year ended
March 31, 2023
34,787.5
27,024.5
7,119.8
384.6
258.6
50.9
48.8
1.8
0.3
11,083.0
11,083.0
6,199.8
169.8
6,028.6
0.4
1.0
3,461.2
3,461.2
97,704.9
69,772.9
27,932.0
9,945.7
9,608.9
195.3
139.2
2.3
6,111.7
3,930.7
2,181.0
4,274.9
4,211.8
63.1
12,950.3
12,950.3
55,163.8
55,163.8
959.7
959.7
` in million
Year ended
March 31, 2022
44,081.7
36,999.2
6,637.2
277.4
167.9
51.1
45.7
2.9
2.5
8,200.0
8,200.0
5,055.3
150.5
4,904.6
0.1
0.1
3,274.3
3,274.3
125,624.0
97,565.7
28,058.3
12,458.0
12,003.8
183.1
269.2
1.9
5,676.0
3,499.9
2,176.1
12,048.4
11,988.1
60.3
11,422.4
11,422.4
222,791.6
222,791.6
879.3
879.3
1. Maximum balance is determined based on comparison of the total outstanding balances at each quarter end during the financial
year.
2. Excludes mark-to-market on outstanding derivative transactions.
228
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
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. Singapore for Singapore dollar 10.0 million
(currently equivalent to ` 617.9 million) (March 31, 2022: ` 559.7 million) to the Monetary Authority of Singapore
(MAS) and has also executed six indemnity agreements on behalf of ICICI Bank Canada to its independent directors
for a sum not exceeding Canadian dollar 2.5 million each (currently equivalent to ` 151.7 million), aggregating to
Canadian dollar 15.0 million (currently equivalent to ` 910.0 million) (March 31, 2022: ` 756.0 million). The aggregate
amount of ` 1,527.9 million at March 31, 2023 (March 31, 2022: ` 1,315.7 million) is included in the contingent
liabilities.
The Bank has issued an undertaking on behalf of ICICI Lombard General Insurance Company Limited to the Insurance
Regulatory and Development Authority of India in relation to the demerger of the general insurance business of
Bharti AXA General Insurance Company Limited and transferring the same into ICICI Lombard General Insurance
Company Limited through a scheme of arrangement.
The letters of indemnity are issued to IDBI Trusteeship Services Ltd (trustee of ICICI Strategic Investment Fund) on
behalf of ICICI Strategic Investment Fund to indemnify against any potential liabilities.
The letters of comfort in the nature of letters of awareness that were outstanding at March 31, 2023 issued by
the Bank on behalf of its subsidiaries in respect of their borrowings made or proposed to be made, aggregated to
` 11,514.8 million (March 31, 2022: ` 16,226.7 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.
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, 2023
14,398.8
2,150.6
(278.8)
16,270.6
` in million
Year ended
March 31, 2022
12,184.0
2,371.7
(156.9)
14,398.8
48. Details of payment of DICGC insurance premium
The following table sets forth, for the periods indicated, the payment of insurance premium and arrears.
Sr.
No.
1.
2.
Particulars
Payment of DICGC Insurance Premium1
Arrears in payment of DICGC premium
1. Excludes goods and service tax.
` in million
Year ended
March 31, 2023
12,673.7
-
Year ended
March 31, 2022
11,166.2
-
229
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
49. 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
At March 31, 2023
At March 31, 2022
Principal
Interest
Principal
Interest
` in million
-
-
-
-
-
-
-
-
-
0.1
0.1
N.A.
N.A.
-
-
0.4
0.4
-
N.A.
-
50. Penalties/fines imposed by RBI and other banking regulatory bodies
There was no penalty imposed by RBI and other overseas banking regulatory bodies during the year ended March 31,
2023 (year ended March 31, 2022: ` 33.0 million).
51. Disclosure on Remuneration
Compensation Policy and practices
(A) Qualitative Disclosures
a) 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 whole time/ 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, Material Risk takers (MRTs) and other employees,
recommending to the Board the remuneration (including performance bonus, share-linked instruments
and perquisites) to wholetime Directors (WTDs) and senior management, approving the policy for
and quantum of variable pay payable to members of the staff including senior management key
managerial personnel, material risk takers and formulating the criteria for determining qualifications,
positive attributes and independence of a Director, framing policies on Board diversity, framing
guidelines for share-linked instruments such as the Employees Stock Option Scheme (ESOS) Scheme
2000), Employees Stock Unit Scheme (Scheme 2022) and deciding on the grant of the Bank’s stock
options/units to employees and WTDs of the Bank and its subsidiary companies as applicable
230
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
•
•
External consultants whose advice has been sought, the body by which they were commissioned,
and in what areas of the remuneration process
During the year ended March 31, 2023, 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 (eg. 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 amended by the BGRNC in its meeting dated October 21,
2022 and the Board at its meeting held on October 22, 2022 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, 2023 was 126,660.
b) 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 performance 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
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 variable pay based on the financial and strategic plan
approved by the Board. The KPIs include both quantitative and qualitative aspects defined with
sub parameters. The BGRNC assesses organisational performance and based on its assessment,
it makes recommendations to the Board the compensation for WTDs, & equivalent positions and
senior management subject to necessary approvals, wherever applicable.
•
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, other assurance areas and
customer service. The Bank’s Employees stock option scheme and Employees stock unit scheme aim
at aligning compensation to long-term performance through grants that vest over a period of time.
Compensation of staff in audit, compliance and risk control functions is independent of the business
areas they oversee.
Changes, if any, made by the remuneration committee in 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, 2023, the Bank’s Compensation Policy was reviewed by the BGRNC
and the Board as below:
BGRNC date Board date Overview of Changes
April 23,
2022
April 23,
2022
October 21,
2022
October 22,
2022
Change in criteria for MRT identification
Incorporate ‘Employees Stock Unit Scheme’ in the compensation policy.
Extend malus/clawback coverage to employees transferred or deputed
or resigned to join a subsidiary/ associate company/ holding company.
To include that bonus clawback survives the resignation, retirement,
early retirement or termination of services of the employee as per the
terms mentioned in the compensation policy.
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Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
•
Process followed by the Bank to ensure that the risk and compliance employees are remunerated
independently of the businesses they oversee
The compensation of staff engaged in control functions like Audit, Risk and Compliance depends on
their performance, which is based on achievement of the key goals of their respective functions. They
are not assessed on business targets.
c) Ways in which current and future risks are taken into account in the remuneration processes.
•
Key risks that the Bank takes into account when implementing remuneration measures
The Board approves the Enterprise Risk Management framework (ERM) for the Bank. The business
activities of the Bank are undertaken within this framework. The r RAF includes the definition of risk
capacity, risk appetite statements and drill down of the same into limits /thresholds for various risk
categories. The Bank’s KPIs which are applicable to WTDs & equivalent positions as well as employees
(excluding control functions), incorporate relevant risk management related aspects. For example, in
FY2023 in addition to performance indicators in areas such as risk calibrated core operating profit
(profit before provisions and tax excluding treasury income), performance indicators included aspects
such as asset quality, risk management framework, stakeholder relationships, customer service and
leadership development. The BGRNC takes into consideration all the above aspects while assessing
organisational performance and making compensation-related recommendations to the Board.
• Nature and type of key measures used to take account of these risks, including risk difficult to measure
The annual Key Performance Indicators and performance evaluation incorporated both qualitative
and quantitative aspects including asset quality and provisioning, risk management framework,
stakeholder relationships, customer service and leadership development.
• 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 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.
The Bank’s KPIs which are applicable to WTDs and equivalent positions as well as employees
(excluding control functions), incorporate relevant risk management related aspects and regulatory
compliance. For example in FY2023, in addition to risk calibrated core operating profit, performance
indicators also included aspects such as asset quality risk management framework, stakeholder
relationships, customer service and leadership development. The BGRNC takes into consideration all
the above aspects while assessing organisational performance and making compensation-related
recommendations to the Board.
•
The nature and type of these measures that 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)
Ways in whic h the Bank seeks to link performance during a performance measurement period with
levels of remuneration
• Main performance metrics for Bank, top level business lines and individuals
The main performance metrics for FY2023 included risk calibrated core operating profit (profit before
provisions and tax, excluding treasury income), asset quality metrics (such as provisions in absolute
terms and as a percentage of core operating profit), regulatory compliance, risk management
processes, stakeholder relationships, customer service and leadership development.
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Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
•
Methodology followed whereby individual remuneration is 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 measures that 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/clawback on none, part or all of
the relevant variable compensation
e) Ways in which the Bank seeks to adjust remuneration to take account of the longer term performance
•
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 variable compensation is in the form of share-linked instruments) or cash or a mix of cash and
share-linked instruments (The quantum of variable pay for an employee does not exceed a certain
percentage (as stipulated in the compensation policy) of the total fixed pay in a year. The proportion
of variable pay to total compensation is higher at senior levels and lower at junior levels. At least 50%
of the compensation is variable for WTDs, CEO and MRTs as a design. However, they can earn lesser
variable pay based on various performance criteria. For WTDs, CEO and MRTs, a minimum of 60%
of the total variable pay is under deferral arrangement (deferment). Additionally, at least 50% of the
cash component of the variable pay is under deferment. If the cash component is under ` 2.5 million,
the deferment is not applicable.
•
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 pertaining to the assessment year or previous year/s (as defined
in the policy) is subject to malus, under which the Bank prevents vesting of all or part or none of the
unvested variable pay in the event of the assessed divergence in the Bank’s provisioning for NPAs
or in the event of a reasonable evidence of deterioration in financial performance or in the event of
gross misconduct and/or other acts as mentioned in the policy. In such cases (other than assessed
divergence), variable pay already paid out may also be subjected to clawback arrangements, as
defined in the compensation policy.
f)
Different forms of variable remuneration that the Bank utilises and the rationale for using these
different forms
•
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 variable compensation is in the form of share-linked instruments or cash or a mix of cash and
share-linked instruments. The Bank pays performance linked retention pay (PLRP) to its front-line
staff and junior 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 pays performance bonus and share-linked instruments to relevant
employees in its middle and senior management. The variable pay payout schedules are sensitive to
the time horizon of risks as defined in the policy.
The Bank ensures higher proportion of variable pay at senior levels and lower variable pay for front-
line staff and junior management levels.
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Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
(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 other Material Risk Takers.
Particulars
1.
2.
3.
Number of meetings held by the BGRNC during the financial year
Remuneration paid to its members during the financial year (sitting
fees)
Number of employees having received a variable remuneration
award during the financial year1
Number and total amount of sign-on/joining bonus made during the
financial year
4. Details of severance pay, in addition to accrued benefits, if any
5.
Breakdown of amount of remuneration awards for the financial year
Fixed2
Variable3
- Deferred
- Non-deferred
Share-linked instruments3(nos.)
- Deferred (nos.)
- Non-deferred (nos.)
Total amount of deferred remuneration paid out during the year
- Bonus4
- Share-linked instruments4 (nos.)
Total amount of outstanding deferred remuneration
Cash5
Shares (nos)
Shares-linked instruments5 (nos.)
Other
Total amount of outstanding deferred remuneration and retained
remuneration exposed to ex-post explicit and/or implicit adjustments
- Bonus
- Share-linked instruments (nos.)
Total amount of reductions during the year due to ex-post explicit
adjustments6
6.
7.
8.
9.
10. Total amount of reductions during the year due to ex-post implicit
adjustments
11. Number of MRTs identified7
12. Number of cases where malus has been exercised
Number of cases where clawback has been exercised6
Number of cases where malus and clawback have been exercised
The mean pay for the bank as a whole (excluding sub-staff) and the
deviation of the pay of each of its WTDs from the mean pay
Mean pay of the bank8
Deviation - MD&CEO9
Deviation - WTD19
Deviation - WTD29
Deviation - WTD39
` in million, except numbers
Year ended
March 31, 2023
Year ended
March 31, 2022
5
1.5
48
-
-
1,142.9
485.6
246.6
239.0
4,277,800
4,277,800
-
68.0
8,015,135
4
0.8
50
-
-
1,216.3
426.1
211.1
215.0
5,977,650
5,977,650
-
-
9,529,100
381.8
-
10,311,910
-
211.1
-
16,098,240
-
381.8
10,311,910
211.1
12,187,480
N.A.
N.A.
42
-
-
-
N.A.
N.A.
48
-
-
-
790,345
74,214,867
52,075,390
67,836,208
65,872,493
755,429
59,094,291
54,049,788
54,788,776
51,573,500
1. Includes MD & CEO, WTDs and other Material Risk Takers (MRTs) based on the revised criteria given by RBI in its guideline
dated November 4, 2019. Also includes MRTs who have resigned, retired or transferred to group companies (separated)
who were paid bonus or stock options granted/vested during the year. Variable remuneration includes cash bonus and
stock options (as per RBI guideline dated November 4, 2019) that are paid/ granted/ vested during the year.
234
Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
2. Fixed pay includes basic salary, supplementary allowances, superannuation, contribution to provident fund, gratuity fund
and value of perquisites The value of perquisite is calculated as cost to the Bank. The salaries of separated MRTs have
been considered for the period they were in service with the Bank. For FY2022, the remuneration approved for FY2021 (as
paid during FY2022) has been considered for MD & CEO and WTDs. For FY2023, the remuneration also includes arrear
payments pertaining to increments of MD & CEO and WTDs for FY2022.
3. Variable and share-linked instruments represent amounts/options awarded for the year ended March 31, 2021 and
March 31, 2022 respectively as per RBI approvals wherever applicable.
4. Includes bonus/options that was paid/vested during the year.
5. Includes outstanding bonus/options at the end of the financial year.
6. Excludes ` 74.1 million variable pay to the former MD & CEO for past years which has been directed for claw-back in
respect of which the Bank has filed a recovery suit against the former MD & CEO.
7. Includes MD & CEO/WTDs/and other MRTs based on the revised criteria given by RBI in its guidelines dated
November 4, 2019.
8. Mean pay is computed on annualised fixed pay that includes basic salary, supplementary allowances, superannuation,
contribution to provident fund, gratuity fund and value of perquisites. The value of perquisite is calculated as cost to
the Bank.
9. The remuneration includes arrear payments made during FY2023 pertaining to increments of MD & CEO and WTDs for
FY2022.
Payment of compensation in the form of profit related commission to the non-executive directors
The Bank pursuant to RBI circular dated April 26, 2021, has discontinued paying profit related commission to Non-
Executive Directors/Independent Directors (other than part-time chairman) from April 1, 2021 and instead fixed
remuneration of ` 14.0 million has been paid for the year ended March 31, 2023 (FY2023). Mr. Girish Chandra
Chaturvedi (part-time Chairman) was paid a remuneration of ` 3.5 million during FY2023. This is excluding sitting
fees.
For the year ended March 31, 2022, fixed remuneration of ` 14.0 million had been paid to Non-Executive Directors/
Independent Directors (other than part-time chairman) and Mr. Girish Chandra Chaturvedi (part-time Chairman)
was paid a remuneration of ` 3.5 million. Further, profit related commission of ` 7.0 million pertaining to FY2021 was
paid to Non-Executive Directors/Independent Directors (other than part-time chairman) in FY2022.
52. 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, 2023 was ` 4,008.5 million (March 31, 2022: ` 2,617.2 million).
The following table sets forth, for the periods indicated, the amount spent by the Bank on CSR related activities.
Particulars
Year ended March 31, 2023
Year ended March 31, 2022
In cash
Yet to be
paid in cash
Total
In cash
Yet to be
paid in cash
Total
` in million
Construction/acquisition of any
asset
On purposes other than (1)
above1
-
4,626.6
-
-
-
-
-
-
4,626.6
2,641.3
24.9
2,666.2
Sr.
No.
1.
2.
1. CSR activities were in the areas of affordable and accessible healthcare, environmental and ecological projects like afforestation,
rain water harvesting and climate smart agriculture, urban and rural livelihood projects, rural development, social awareness
programme and Har Ghar Tiranga programme.
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Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
As required under the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, surplus of
` 171.2 million during the year ended March 31, 2023 (year ended March 31, 2022: ` 139.9 million), from CSR
activities transferred to the unspent CSR account.
The following table sets forth, for the periods indicated, the details of related party transactions pertaining to CSR
related activities.
Sr.
No.
Related Party
1.
ICICI Foundation for inclusive Growth1
Total
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
4,401.1
4,401.1
2,239.2
2,239.2
1. The above excludes ` 40.0 million of surplus during the year ended March 31, 2022 from CSR activities, transferred to unspent
CSR account and spent by September 30, 2022, as required by law.
The following table sets forth, for the periods indicated, the details of movement in provision pertaining to CSR
related activities.
Particulars
Opening balance of provision
Add: Provision for expenses during the year
Less: payment out of opening balance
Closing balance
53. Disclosure of customer complaints
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
24.9
-
24.9
-
119.2
24.9
119.2
24.9
The following table sets forth, for the periods indicated, the movement of complaints received by the Bank from its
customers.
Particulars
1. No. of complaints pending at the beginning of the year
2. No. of complaints received during the year
3. No. of complaints disposed during the year
3a. Of which, number of complaints rejected by the Bank
4. No. of complaints pending at the end of the year
Year ended
March 31, 2023
Year ended
March 31, 2022
10,401
248,337
244,309
101,227
14,429
30,096
409,670
429,365
164,458
10,401
1. Complaints do not include complaints redressed by the Bank within one working day.
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Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
The following table sets forth, for the periods indicated, the details of maintainable complaints received.
Particulars
i.
Number of maintainable complaints received by the Bank from Office
of Banking Ombudsmans (OBOs)1
Of (i), number of complaints resolved in favour of the Bank by Banking
Ombudsmans (BOs)
Of (i), number of complaints resolved through conciliation/mediation/
advisories issued by BOs2
Of (i), number of complaints resolved after passing of Awards by
BOs against the Bank
ii.
Number of Awards unimplemented within the stipulated time (other
than those appealed)
Year ended
March 31, 2023
Year ended
March 31, 2022
12,114
12,174
5,627
6,487
-
-
5,566
6,608
-
-
1. Maintainable complaints are as per data received from RBI.
2. For year ended March 31, 2023, 432 complaints (March 31, 2022: 361 complaints) were resolved based on advisories received
from BOs.
The following table sets forth, top five grounds of complaints received by the Bank from customers for the year
ended March 31, 2023.
Grounds of complaints
No. of
complaints
pending at the
beginning of
the year
No. of
complaints
received
during the
year
% increase/
decrease in the
no. of complaints
received over
previous year
No. of
complaints
pending at
the end of the
year
Of 5, No. of
complaints
pending
beyond 30
days
1
2
ATM/Debit Cards
Credit Cards
Internet/Mobile/ Electronic
Banking
Loans and advances
Account opening/difficulty
in operation of accounts
Others
Total
3,655
3,312
2,018
270
144
1,002
3
76,049
70,225
53,011
11,026
7,708
30,318
10,401
248,337
4
5
6
(50.4%)
(49.1%)
25.9%
(30.3%)
(27.4%)
(39.3%)
(39.4%)
1,343
2,618
9,109
211
184
964
148
367
3,546
3
5
56
14,429
4,125
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Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
The following table sets forth, top five grounds of complaints received by the Bank from customers for the year
ended March 31, 2022.
Grounds of complaints
No. of
complaints
pending at
the beginning
of the year
No. of
complaints
received
during the
year
% increase/
decrease in the
no. of complaints
received over
previous year
No. of
complaints
pending at
the end of the
year
Of 5, No. of
complaints
pending
beyond 30
days
1
ATM/Debit Cards
Credit Cards
Internet/Mobile/ Electronic
Banking
Loans and advances
Account opening/ difficulty
in operation of accounts
Others
Total
2
11,760
10,107
6,877
268
257
827
3
153,340
137,857
42,091
15,817
10,614
49,951
30,096
409,670
4
5
6
(37.2%)
12.5%
0.0%
7.9%
(3.3%)
4.4%
(15.0%)
3,655
3,312
2,018
270
144
1,002
10,401
742
525
130
2
0
64
1,463
54. Drawdown from reserves
The Bank has not drawn any amount from reserves during the year ended March 31, 2023 (year ended March 31,
2022: Nil).
55. 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, 2023 and March 31, 2022, has been transferred without any delay.
56. Implementation of IFRS converged Indian Accounting Standards
In January 2016, the Ministry of Corporate Affairs issued the roadmap for implementation of new Indian Accounting
Standards (Ind AS), converged with International Financial Reporting Standards (IFRS), for scheduled commercial
banks, insurance companies and non-banking financial companies (NBFCs). However, currently the implementation
of Ind AS for banks has been deferred by RBI till further notice pending the consideration of some recommended
legislative amendments by the Government of India. The Bank is in an advanced stage of preparedness for
implementation of Ind AS, as and when these are made applicable to the Indian banks. Further, there may be new
regulatory guidelines and clarifications in some critical areas of Ind AS application, which the Bank will need to
suitably incorporate in its implementation.
57. Disclosure on lending and borrowing activities
The Bank, as part of its normal banking business, grants loans and advances, makes investment, provides guarantees
to and accept deposits and borrowings from its customers, other entities and persons. These transactions are part
of Bank’s normal banking business, which is conducted ensuring adherence to all regulatory requirements.
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Annual Report 2022-23 FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
Other than the transactions described above, no funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the Bank to or in any other persons or
entities, including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall lend or invest in party identified by or on behalf of the Bank (Ultimate Beneficiaries). The
Bank has also not received any fund from any parties (Funding Party) with the understanding that the Bank shall
whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
58. 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 M S K A & Associates
Chartered Accountants
ICAI Firm Registration no.:
105047W
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Tushar Kurani
Partner
Membership no.: 118580
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Gautam Shah
Partner
Membership no.: 117348
UDIN :
Mumbai
April 22, 2023
239
Integrated ReportStatutory ReportsFinancial StatementsFINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Accounts (Contd.)
INDEPENDENT AUDITOR’S REPORT
To the Members of
ICICI Bank Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
1.
2.
We have audited the accompanying consolidated financial statements of ICICI Bank Limited (hereinafter referred to
as the “Bank” or ‘Holding Company’) and its subsidiaries (Holding Company and its subsidiaries together referred
to as “the Group”), and its associates, which comprise the Consolidated Balance Sheet as at 31 March 2023, the
Consolidated Profit and Loss account, and the Consolidated Cash Flow Statement for the year then ended, and
notes to the Consolidated Financial Statements, including a summary of significant accounting policies and other
explanatory information (hereinafter referred to as “the consolidated financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, and based on
consideration of the reports of the other auditors on separate financial statements and the other financial information
of subsidiaries and associates, the aforesaid consolidated financial statements give the information required by the
Banking Regulation Act, 1949 as well as the Companies Act, 2013 (‘the Act’), and circulars and guidelines issued
by the Reserve Bank of India (‘RBI’) from time to time (‘RBI Guidelines’) in the manner so required for banking
companies and give a true and fair view in conformity with the Accounting Standards prescribed under Section 133
of the Act read with the Companies (Accounting Standards) Rules, 2021 and other and other accounting principles
generally accepted in India, of the consolidated state of affairs of the Group and its associates as at 31 March 2023,
and their consolidated profit, and their consolidated cash flows for the year then ended.
Basis for Opinion
3.
We conducted our audit in accordance with the Standards on Auditing (‘SAs’) specified under section 143(10) of
the Act. Our responsibilities under those SAs 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 Group and its associates
in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements
in India in terms of the Code of Ethics issued by Institute of Chartered Accountant of India (‘ICAI’), and the relevant
provisions of the Act and the rules thereunder and we have fulfilled our other ethical responsibilities in accordance
with these requirements. We believe that the audit evidence we have obtained along with the consideration of audit
reports of other auditors referred to in the “Other Matters” paragraph below is sufficient and appropriate to provide
a basis for our opinion on the Consolidated Financial Statements.
Key Audit Matters
4.
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 other financial information of the subsidiaries and
associates, as referred to in paragraph 17 below, were of most significance in our audit of the consolidated financial
statements of the current year. 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.
240
Annual Report 2022-23 INDEPENDENT AUDITOR’S REPORT (Contd.)
5. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter
How the matter was addressed in our audit
Identification and provisioning of non-performing advances (NPA):
Total Loans and Advances (Net of Provision) as at 31 March 2023: ` 10,838,663,147 (in ‘000s) Provision for
NPA as at 31 March 2023: ` 256,291,070 (in ‘000s) of which Total Loans and Advances (Net of Provision) as at
31 March 2023: ` 10,196,383,053 (in ‘000s)* & Provision for NPA as at 31 March 2023: ` 248,358,100
(in ‘000s)* relates to Bank.
(Refer Schedule 9, Schedule 17(13))
* the amounts relating to the Bank are before consolidation adjustments including intercompany eliminations, if any.
India’s
The Reserve Bank of
(“RBI”) guidelines
on Income recognition and asset classification &
Provisioning (“IRAC”) and other circulars and directives
issued by the RBI from time to time, which prescribe the
prudential norms for identification and classification of
performing & non-performing assets (“NPA”) and the
minimum provision required for such assets. The Bank
is required to have Board approved policy as per IRAC
guidelines for NPA identification & classification of
advances and provision thereon.
The provision on NPA is estimated based on ageing
and classification of NPAs, recovery estimates, nature
of loan product, value of security and other qualitative
factors and is subject to the minimum provisioning
norms specified by RBI and approved policy of the
Bank in this regard.
The Bank is also required to apply its judgement to
determine the identification and provision required
against NPAs by applying quantitative as well as
qualitative factors. The risk of identification of NPAs is
affected by factors like stress and liquidity concerns in
certain sectors.
Additionally, the Bank makes provisions on exposures
that are not classified as NPA including advances
to certain sectors and identified advances or group
advances. These are classified as contingency
provisions.
Since the identification of NPAs and provisioning for
advances require significant level of estimation and
given its significance to the overall audit including
possible observation by RBI which could result into
disclosure
in the financial statements, we have
ascertained identification and provisioning for NPAs as
a key audit matter.
Our audit procedures with respect to this matter
included:
Tested the design and operating effectiveness of
key controls (including application controls) over
approval, recording, monitoring and recovery of loans,
monitoring overdue / stressed accounts, identification
of NPA, provision for NPA and valuation of security and
collateral on a test check basis. Further obtained an
understanding of the contingency provision carried by
the Bank and verified the underlying assumptions used
by the Bank for such estimate.
Tested application controls included test of automated
controls, reports and system reconciliations.
Reviewed existence and effectiveness of monitoring
mechanisms such as Internal Audit, Systems Audit, and
Concurrent Audit as per the policies and procedures of
the Bank;
Evaluated the governance process and review controls
over calculations of provision of non-performing
advances, basis of provisioning in accordance with the
Board approved policy.
Selected a sample of borrowers based on quantitative
and qualitative risk factors for their assessment of
appropriate
identification & classification as NPA
including computation of overdue ageing to assess
its correct classification and provision amount as per
extant IRAC norms and the Bank policy.
Performed other substantive procedures included and
not limited to the following:
loans and
Selected samples of performing
assessed independently as to whether those
should be classified as NPA;
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Integrated ReportStatutory ReportsFinancial Statements INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How the matter was addressed in our audit
For samples selected, reviewed the collateral
valuations,
financial statements and other
qualitative information
Considered the accounts reported by the Bank
and other Banks as Special Mention Accounts
(“SMA”) in RBI’s Central Repository of Information
on Large Credits (CRILC) to identify stress.
For selected samples, assessed independently,
the accounts that can potentially be classified as
NPA and Red flagged accounts.
Inquired with the credit and risk departments to
ascertain if there were indicators of stress or an
occurrence of an event of default in a particular
loan account or any product category which
needed to be considered as NPA.
Examined the accounts under watchlist report
provided by the risk department.
Discussed with the management of the Bank on
sectors where there is a perceived credit risk and
the steps taken to mitigate the risks to identified
sectors.
Selected and tested samples for accounts which
are restructured as per RBI Master Circular -
Prudential norms on Income Recognition, Asset
Classification and Provisioning pertaining to
Advances; and
Assessed appropriateness & the adequacy of
disclosures against
relevant accounting
the
standards and RBI requirements relating to NPAs.
Evaluation of Litigations included in Contingent Liabilities
As at 31 March 2023, the Group has reported ‘Claims against the Group not acknowledged as debts’ of
` 88,006,837 (in ‘000s) (31 March 2022 – ` 89,527,688 (in ‘000s)), of which the following relate to the Bank:
Particulars
Legal Cases
Taxes
(Included under contingent liabilities) (in ‘000)
As at
31 March 2023
As at
31 March 2022
3,027,295
3,201,365
78,935,723
79,637,364
Total Claims against Bank not acknowledged as Debt
81,963,018
82,838,729
((Refer Schedule 12 and Schedule 17(10))
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Annual Report 2022-23 INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How the matter was addressed in our audit
The Bank has material open tax litigations including
matters under dispute which
involve significant
judgement to determine the possible outcome of these
disputes.
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
determination of whether outflow in respect of
identified material matters are probable and can
be estimated reliably.
Adequacy of provisions: The appropriateness of
assumption and judgements used in estimation of
significant provisions; and
Adequacy of disclosures of provision for liabilities
and charges, and contingent liabilities.
The Bank’s assessment is supported by the facts of
matter, their own judgement, experience, and advises
from legal and independent tax consultants wherever
considered necessary.
Since the assessment of these open litigations requires
significant level of judgement in interpretation of law,
we have included this as a key audit matter.
Our Audit procedures with respect to this matter
included:
Tested the design and operating effectiveness of the
Bank’s key controls over the estimation, monitoring
and disclosure of provisions and contingent liabilities
on test check basis.
Our substantive audit procedures included and were
not limited to the following:
Obtained an understanding of Bank’s process
for determining tax
liabilities, tax provisions
and contingent liabilities pertaining to legal and
taxation matters;
Obtained a list of cases /matters in respect of
which the litigations were outstanding as at
reporting date:
•
•
For significant legal matters, we obtained
external confirmations and corroborated
with management’s documented conclusions
on the assessment of outstanding litigations
against the Bank;
For significant taxation matters, we involved
our tax specialists to gain an understanding
of status of
including
understanding of various orders/ notices
received by the Bank and management’s
grounds of appeals before the relevant
appellate authorities.
litigations
the
Evaluated the merit of the subject matter under
consideration with reference to the grounds
presented therein and available independent legal
/ tax advice;
Inquired with appropriate level of the management
including status update, expectation of outcomes
with the basis, and the future course of action
contemplated by the Bank;
Reviewed minutes of meetings with Board, and
Audit committee in this regard
Agreed underlying tax balances to supporting
documentation including correspondence with the
Tax authorities; and
Assessed
the appropriateness & adequacy
of disclosures within the standalone financial
statements in accordance with the applicable
accounting standards and requirements of RBI in
this regard.
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INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How the matter was addressed in our audit
Information Technology (‘IT’) systems and controls impacting financial controls.
The Bank has a complex IT architecture to support
its day-to-day business operations. High volume of
transactions is processed and recorded on single or
multiple applications.
The reliability and security of IT systems plays a key
role in the business operations of the Bank. Since
large volume of transactions are processed daily, the
IT controls are required to ensure that applications
process data as expected and that changes are made
in an appropriate manner.
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.
We have identified ‘IT systems and controls’ as 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
and its impact on the financial reporting system.
Our Audit procedures with respect to this matter
included:
For testing the IT general controls, application controls
and IT dependent manual controls, we involved IT
specialists as part of the audit. The team also assisted
in testing the accuracy of the information produced by
the Bank’s IT systems.
Obtained a comprehensive understanding of
IT
applications landscape implemented at the Bank. It
was followed by process understanding, mapping of
applications to the same and understanding financial
risks posed by people-process and technology.
Key IT audit procedures includes testing design and
operating effectiveness of key controls operating over
user access management (which includes user access
provisioning, de-provisioning, access review, password
configuration review, segregation of duties and privilege
access), change management (which include change
release in production environment are compliant to the
defined procedures and segregation of environment is
ensured), program development (which include review
of data migration activity), computer operations (which
includes testing of key controls pertaining to, backup,
Batch processing (including interface testing), incident
management and data centre security), System
interface controls. This included testing that requests
for access to systems were appropriately logged,
reviewed, and authorized.
In addition to the above, the design and operating
effectiveness of certain automated controls, that were
considered as key internal system controls over financial
reporting were tested. Using various techniques such
as inquiry, review of documentation / record / reports,
observation, and re-performance. We also tested few
controls using negative testing technique.
Tested compensating controls and performed alternate
procedures, where necessary. In addition, understood
where relevant changes made to the IT landscape
during the audit period.
244
Annual Report 2022-23 INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How the matter was addressed in our audit
Valuation of Derivatives:
As at 31 March 2023, the Group has reported notional value of derivatives of ` 48,498,441,596 (in ‘000)
(31 March 2022 – ` 43,893,514,404 (in ‘000s)), of which the following relate to the Bank:
Particulars
Notional amounts *
(Included under contingent liabilities) (in ‘000)
As at
31 March 2023
As at
31 March 2022
40,984,024,707
37,056,016,613
(Refer Schedule 12.III, 12.VI, 12.VII, Schedule 18(14) to the standalone financial statements)
* the amounts relating to the Bank are before consolidation adjustments including intercompany eliminations, if any.
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,
valuation 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.
Our audit procedures included, but were not limited to,
the following:
We obtained an understanding, evaluated the
design, and tested 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, we performed an independent
reassessment of the valuation of derivatives and
evaluated significant models and methodologies used
in valuation, to ensure compliance with the relevant
RBI regulations, reasonableness of the valuation
methodology and the inputs used.
245
Integrated ReportStatutory ReportsFinancial Statements INDEPENDENT AUDITOR’S REPORT (Contd.)
The joint auditors of ICICI Prudential Life Insurance Company Limited, vide their audit report dated 20 April 2023,
have expressed an unmodified opinion on the financial statements. Based on consideration of their report, the
following Key Audit Matter was included in the audit report.
Key Audit Matter
How the matter was addressed in our audit
Information Technology (IT) systems relating to ICICI Prudential Life Insurance Company Limited
The Company is highly dependent on information
technology systems and controls to process and record
large volume of transactions, such that there exists a
risk that gaps in the IT control environment could result
in the financial accounting and reporting records being
materially misstated.
Involvement of IT specialists in assessment of the
IT systems and controls over financial reporting,
which included carrying out the following key audit
procedures:
Understood General IT Controls (GITC) over key
reporting systems
financial accounting and
IT systems are accessible to employees
Further,
on a remote basis which could result in increasing
challenges around the data protection.
to
Due
the pervasive nature, complexity and
importance of the impact of the IT systems and related
control environment on the Company’s financial
statements, testing of such IT systems and related
control environment has been identified as a key audit
matter for the current year audit.
(referred to as “in-scope systems”) which covered
access controls, program/ system changes,
program development and computer operations
i.e. job processing, data/ system backup and
incident management;
Tested controls over IT infrastructure covering
user access including privilege users and system
changes;
Evaluated design and operating effectiveness for
in-scope systems and application controls which
covered segregation of duties, system interfaces,
completeness and accuracy of data feeds and
system reconciliation controls;
Evaluated policies and strategies adopted by
the Company in relation to operational security
of key information infrastructure, data and client
information management and monitoring and
crisis management; and
Assessed whether controls have
remained
unchanged during the year or were changed after
considering controls around change management
process.
Valuation and Impairment determination of Investments relating to ICICI Prudential Life
Insurance Company Limited (31 March 2023 : ` 2,482,204,207 (in ‘000s)
(31 March 2022 : ` 2,381,077,786 (in ‘000s))
(Refer Schedule 8, Schedule 17(12))
* the amounts relating to ICICI Prudential Life Insurance Company Limited are before consolidation adjustments including
intercompany eliminations, if any.
246
Annual Report 2022-23 INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How the matter was addressed in our audit
investment portfolio consists of
The Company’s
Policyholders investments (unit linked and non-linked)
and Shareholders
investment
portfolio represents 99 percent of the Company’s total
assets as at 31 March 2023.
investments. Total
Regulations,
Investments are valued
in accordance with the
provisions of the Insurance Act, the IRDA Financial
Statements
(Investment)
Regulations, 2016 orders/ directions/ circulars issued
by IRDAI and / or policies as approved by the Board of
Directors of the Company (collectively the “Accounting
Policy”).
IRDAI
Investments in unit linked portfolio of ` 1,440,580,565
(in ‘000s) are valued based on observable inputs as per
their accounting policy and gains/losses are recognized
in Revenue account. These unit
linked portfolio
investments do not represent higher risk of material
misstatement however, are considered to be a key
audit matter due to their materiality to the standalone
financial statements.
Investments in non-linked and shareholders portfolio
of ` 1,041,623,642 (in ‘000s) are valued as per their
accounting policy, based on which:
the unrealized gains/ losses arising due to changes
in fair value of listed equity shares and mutual
fund units are recorded in the “Fair Value Change
Account” in the Balance Sheet; and
debt securities and unlisted equity shares are
valued at historical cost.
investments
Further,
the non-linked and
in
shareholders portfolio are assessed for impairment as
per the Company’s investment policy which involves
significant management judgement. There is increased
economic stress on account of external factors, which
may impact the valuation of these investments.
investments
Accordingly, valuation of
(including
impairment assessment) was considered to be one of
the areas which required significant auditor attention
and was one of the matter of most significance in the
standalone financial statements.
Carried out the following key audit procedures:
Understood the Company’s process and tested
the controls on the valuation of investments;
Tested the design, implementation and operating
effectiveness of key controls over the valuation
process, including the Company’s assessment
and approval of assumptions used for valuation,
including key authorization and data input controls
thereof;
Assessed valuation methodologies with reference
to the Accounting Policy and the Company’s Board
approved valuation policy;
listed
investments,
For selected samples of
performed
independent price checks using
external quoted prices and by agreeing the inputs
which were used in the Company’s valuation
techniques to external data;
selected
samples of
For
cost measured
investments, tested Company’s assessment of
impairment and evaluated whether the same
was in accordance with the Company’s updated
impairment policy; and
Evaluated how the Company has factored the
impact of economic stress in investment valuation
process (including impairment assessment).
247
Integrated ReportStatutory ReportsFinancial Statements INDEPENDENT AUDITOR’S REPORT (Contd.)
The joint auditors of ICICI Lombard General Insurance Company Limited, vide their audit report dated 18 April 2023,
have expressed an unmodified opinion on the financial statements. Based on consideration of their report, the
following Key Audit Matter was included in the audit report.
Key Audit Matter
How the matter was addressed in our audit
Information Technology (IT) systems relating to ICICI Lombard General Insurance Company Limited
The company is highly dependent on its complex IT
architecture comprising hardware, software, multiple
applications, automated interfaces and controls in
systems for recording, storing and reporting financial
transactions.
Large volume of transactions that are processed on
daily basis as part of its operations, which impacts
key financial accounting and reporting items such as
premium income, claims, commission expenses and
investments among others.
There exists a risk that, gaps in the IT control environment
could result in the financial accounting and reporting
records being materially misstated.
the
The controls implemented by the entity in its IT
environment determine
integrity, accuracy,
completeness, and the validity of the data that is
processed by the applications and is ultimately used
for financial reporting. These controls contribute to
mitigating risk of potential misstatements caused by
fraud or errors.
Audit approach relies on automated controls and
therefore procedures are designed to test control over
IT systems, segregation of duties, interface and system
application controls over key financial accounting and
reporting systems.
Key audit procedures included but were not limited to
the following:
Obtained an understanding of the entity's IT related
control environment. Furthermore, conducted a risk
assessment and identified IT applications that are key
for the Company’s financial reporting.
For the key IT systems relevant to reporting of financial
information, areas of audit focus included access,
program change management, automated transaction
and interface controls. In particular:
Obtained an understanding of the entity's IT
environment and key changes if any during the
audit period that may be relevant to the audit.
On sample basis tested the design, implementation
and operating effectiveness of the General IT
controls over the key IT systems that are critical
to financial reporting. This included evaluation of
entity's controls to ensure segregation of duties
and appropriate access rights.
Controls over changes to software applications
were evaluated to verify whether the changes
were approved, tested in an environment that
was segregated from operation and moved to
production by appropriate users.
Evaluated the design and tested the operating
effectiveness of critical & key automated controls
within various business processes around the
Software system. This
included testing the
integrity of system interfaces, the completeness
and accuracy of data feeds, system reconciliation
controls and automated calculations.
Reviewed the Information System Audit Reports
and Key audit findings of Internal Audit to assess
the impact of observations and management’s
response if any on financial reporting.
Results of the tests has provided audit evidence
which have been used to draw conclusions including
reporting.
248
Annual Report 2022-23 INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How the matter was addressed in our audit
Investments of ICICI Lombard General Insurance Company Limited
The Company’s investments represent 78% of the
assets as at 31 March 2023 which are to be valued in
accordance with accounting policy framed as per the
extant regulatory guidelines.
The valuation of all investments should be as per the
investment policy framed by the Company which in turn
should be in line with IRDAI Investment Regulations
and Preparation of Financial Statement Regulations.
The valuation methodology specified in the regulation
is to be used for each class of investment.
The Company has a policy framework for Valuation and
impairment of Investments. The Company performs an
impairment review of its investments periodically and
recognizes impairment charge when the investments
meet the trigger/s for impairment provision as per the
criteria set out in the investment policy of the Company.
Further, the assessment of
involves
significant management judgment.
impairment
The classification and valuation of these investments
was considered one of the matters of material
significance in the financial statements due to the
materiality of the total value of investments to the
financial statements.
Audit procedures on Investments included the following:
Understood Management’s process and controls
to ensure proper classification and valuation of
Investment.
Verified and obtained appropriate external
confirmation for availability and ownership rights
related to these investments.
Tested the design, implementation, management
oversight and operating effectiveness of key
controls over the classification and valuation
process of investments.
Test-checked valuation of different class of
investments to assess appropriateness of the
valuation methodologies with reference to IRDAI
Investment Regulations along with Company’s
own investment policy.
Examining the rating downgrades by credit rating
agencies and assessing the risk of impairments to
various investments.
Reviewed the Company’s impairment policy and
assessed the adequacy of its impairment charge
on investments outstanding at the year end.
Based on procedures above, found the Company’s
impairment, valuation and classification of investments
in its financial statements in all material respects to be
fair.
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Integrated ReportStatutory ReportsFinancial Statements INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How the matter was addressed in our audit
Migration of databases used by erstwhile Bharti Axa General Insurance Limited's insurance
business ("Insurance Undertaking") with the ICICI Lombard General Insurance Company Limited
During the year the Company formulated a plan and
started migrating the historical and as well currently
active, Policy, claims and other relevant electronic data
as part of the integration of the Insurance Undertaking.
Data Migration involves carefully planning the cutover
and data movement strategy, controls to ensure
accuracy, completeness, system of validation and a
process for handling errors in Data Migration. Data
Migration is crucial to ensuring integrity and accuracy of
the data flowing into financial accounting system that
generates the Financial Statements of the Company.
Being a one-time activity carrying an important audit risk
which required appropriate response as critical part of
audit strategy.
Audit procedures included following;
Obtained understanding of
internally approved
migration strategy and timelines, which also includes
business criteria for identifying data that needs to be
migrated
Obtained understanding of controls designed and
implemented as part of migration strategy at various
stages of migration and evaluated their adequacy.
Test the checked the operating effectiveness of the
designed controls
Enquired and reviewed the process of error handling
including their ultimate resolution Designed and
executed few audit tests to validate accuracy and
completeness of the Migrated data
Results of tests has provided audit evidence which have
used to draw conclusions including our reporting.
Information Other than the Consolidated Financial Statements and Auditor’s Report Thereon
6.
The Holding Company’s Board of Directors are responsible for the other information. The other information comprises
the information included in the Annual Report but does not include the consolidated financial statements and our
auditor’s report thereon. The Annual Report is expected to be made available to us after that date of this auditor’s
report.
Our opinion on the Consolidated Financial Statements does not cover the other information and we will 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 identified above when it becomes available and, in doing so, consider whether the other information
is materially inconsistent with the Consolidated Financial Statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance and take appropriate action as applicable under the
relevant laws and regulations.
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INDEPENDENT AUDITOR’S REPORT (Contd.)
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
7.
The Holding Company’s Board of Directors are responsible for the matters stated in section 134(5) of the Act with
respect to the preparation and presentation 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
Group including its associates in accordance with the accounting principles generally accepted in India, including
the Accounting Standards specified under section 133 of the Act read with the Companies (Accounting Standard)
Rules, 2021, provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the
Reserve Bank of India (‘RBI’) from time to time (‘RBI Guidelines’). The respective Board of Directors of the Holding
Company and the subsidiary companies included in the Group and of its associate companies are responsible for
maintenance of adequate accounting records in accordance with the provisions of the Act and the RBI guidelines
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 the design, implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring 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, which have been used for the purpose of preparation of
the consolidated financial statements by the Management and Directors of the Bank, as aforesaid.
8.
In preparing the consolidated financial statements, the respective Board of Directors of the companies included in
the Group and of its associates are responsible for assessing the ability of the respective companies included in
the Group and of its associates to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the respective Board of Directors either intends to
liquidate the companies included in the Group and its associates or to cease operations, or has no realistic alternative
but to do so.
9.
The respective Board of Directors of the companies included in the Group and of its associates are also responsible
for overseeing the financial reporting process of the subsidiary companies included in the Group and of its associates.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
10. 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 SAs 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 consolidated financial statements.
11. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
•
•
Identify and assess the risks of material misstatement of the consolidated 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 expressing our
opinion on whether the Bank has adequate internal financial controls with reference to consolidated financial
statements in place and the operating effectiveness of such controls;
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INDEPENDENT AUDITOR’S REPORT (Contd.)
•
•
•
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the 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 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 and its associates to cease to continue as a going
concern;
Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation;
Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group
and its associates to express an opinion on the consolidated financial statements. We are responsible for the
direction, supervision and performance of the audit of the financial statements of such entities included in the
consolidated financial statements of which we are the independent auditors. For the other entities included in
the consolidated financial statements, which have been audited by other auditors, such other auditors remain
responsible for the direction, supervision and performance of the audits carried out by them. We remain solely
responsible for our audit opinion.
12. We communicate with those charged with governance of the Bank and such other entities included in the
consolidated financial statements of which we are the independent auditors 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.
13. 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.
14. 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 year 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
15. The joint statutory auditors of ICICI Prudential Life Insurance Company Limited (‘ICICI Life’), vide their audit report
dated 20 April 2023 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 2023 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 2023 has been duly certified by the
Appointed Actuary and in his opinion, the assumptions for such valuation are in accordance with the guidelines
and norms issued by the IRDAI and the Institute of Actuaries of India in concurrence with the Authority. Accordingly,
the joint auditors have relied upon the Appointed Actuary’s certificate in this regard for forming their opinion on the
252
Annual Report 2022-23
INDEPENDENT AUDITOR’S REPORT (Contd.)
valuation of liabilities for life policies in force and for policies in respect of which premium has been discontinued but
liability exists in the standalone financial statements of the Company’. Our opinion is not modified in respect of this
matter based on the opinion expressed by the joint statutory auditors of ICICI Life.
16. The joint statutory auditors of ICICI Lombard General Insurance Company Limited (‘ICICI General’), vide their audit
report dated 18 April 2023, 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 the Premium Deficiency Reserve ('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 2023 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 exists in the financial statements of the Company’. Our opinion is not modified in respect of this
matter based on the opinion expressed by the joint statutory auditors of ICICI General.
17. We did not audit the financial Statement of fifteen subsidiaries, whose financial statements reflect total assets of
` 3,44,94,39,942(in ‘000s) (before consolidation adjustments) as at 31 March 2023, total revenue of ` 58,35,04,685
(in ‘000s) (before consolidation adjustments), total net profit after tax of ` 4,06,07,417 (in ‘000s) (before consolidation
adjustments) and total net cash flows of ` 2,19,71,269 (in ‘000s) respectively for the year ended 31 March 2023,
which have been audited by their respective independent auditors. The consolidated financial Statement includes
the Group's share of net profit of ` 98,63,014 (in ‘000s) (before consolidation adjustments) for year ended 31
March 2023 in respect of four associates 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 associates, and our report in terms of section 143(3) of the Act, in so far as it
relates to the aforesaid subsidiaries and associates, is based solely on the reports of the other auditors. Further, of
these subsidiaries, two subsidiaries are located outside India whose financial statements have been prepared in
accordance with accounting principles generally accepted in their respective country and which have been audited
by their respective auditors under generally accepted auditing standards applicable in their respective countries.
Our audit report in so far as it relates to the balances and affairs of such subsidiaries located outside India, is based
on the report of other auditors. According to the information and explanations given to us by the management, the
financial statements of these subsidiaries are not material to the Group. Our opinion is not modified in respect of
these matters.
18. We did not audit the financial Statement of one subsidiary, whose financial statements reflect total assets of
` 36,34,64,682 (in ‘000s) (before consolidation adjustments), total revenue of ` 1,40,60,301 (in ‘000s) (before
consolidation adjustments), total net profit after tax of ` 28,18,931 (in ‘000s) (before consolidation adjustments) and
total net cashflows of ` 31,01,992 (in ‘000s) for the year ended 31 March 2023. Further, this subsidiary is located
outside India whose financial statements have been prepared in accordance with accounting principles generally
accepted in their respective country. The Statement also includes the Group's share of net profit of ` 1,19,062 (in
‘000s) (before consolidation adjustments) for the year ended 31 March 2023 respectively in respect of four associates
whose financial statements have not been audited. These financial statements / financial information are unaudited
and 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 associates and our
report in terms of section 143(3) of the Act in so far as it relates to the aforesaid subsidiaries and associates, is based
solely on such unaudited financial statements / financial information. In our opinion and according to the information
and explanations given to us by the Management, these financial statements / financial information are not material
to the Group. Our opinion is not modified in respect of these matters.
253
Integrated ReportStatutory ReportsFinancial Statements INDEPENDENT AUDITOR’S REPORT (Contd.)
19. Our opinion 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
20. The Consolidated Balance Sheet and the Consolidated 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 and the relevant
rules issued thereunder.
21. In our opinion and according to the information and explanation given to us and based on reports of the statutory
auditors of such subsidiary companies and associates companies incorporated in India which were not audited
by us, the remuneration paid during the current year by the subsidiaries and associate companies incorporated
in India to its directors is in accordance with the provisions of and the limits laid down under section 197 read
with Schedule V of the Act. Further, for four associates, as referred to in paragraph 18 above, whose financial
statements/information have not been audited, in absence of reporting of such entities with respect to compliance of
the provisions of section 197 read with Schedule V of the Act during the year ended 31 March 2023, we are unable
to comment on such compliance for the said entities as required to be reported by us under section 197(16) of the
Act. 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.
22. As required by Section 143(3) of the Act, based on our audit and on the consideration of report of the other auditor
on separate financial statements and the other financial information of the the subsidiaries and associates we
report, to the extent applicable, that:
a.
b.
c.
d.
e.
f.
We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated
financial statements have been kept so far as it appears from our examination of those books and the reports
of the other auditors.
The Consolidated Balance Sheet, the Consolidated Profit and Loss Account, and the Consolidated Cash Flow
Statement dealt with by this Report are in agreement with the relevant books of account maintained for the
purpose of preparation of the consolidated financial statements.
In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified
under Section 133 of the Act read with relevant rules issued thereunder, to the extent they are not inconsistent
with the guidelines prescribed by RBI.
On the basis of the written representations received from the directors of the Bank as on 31 March 2023 taken
on record by the Board of Directors of the Bank and the reports of the statutory auditors of its subsidiary
companies and associate companies incorporated in India, none of the directors of the Group companies and
its associate companies incorporated in India are disqualified as on 31 March 2023 from being appointed as a
director in terms of Section 164 (2) of the Act.
With respect to the adequacy of internal financial controls with reference to consolidated financial statements
of the Group and its associates and the operating effectiveness of such controls, refer to our separate report in
“Annexure A”.
254
Annual Report 2022-23
INDEPENDENT AUDITOR’S REPORT (Contd.)
g.
i.
ii.
With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditor’s) Rules, 2014 as amended, in our opinion and to the best of our information and
according to the explanations given to us based on our audit and on the consideration of report of the other
auditor on separate financial statements of such subsidiaries and associates as noted in the ‘Other Matters’
paragraph:
The consolidated financial statements disclose the impact of pending litigations as at 31 March 2023 on
the consolidated financial position of the Group and its associates. (Refer Schedule 12, Schedule 17(10) and
Schedule 18(6) to the consolidated financial statements)
Provision has been made in the consolidated financial statements as at 31 March 2023, as required under the
applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts – (Refer Schedule 17(10) and Schedule 18(6) to the consolidated financial statements), in
respect of such items as it relates to the Group and its associates and the Group’s share of net profit in respect
of its associates.
iii.
There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Bank and its subsidiary companies, associate companies incorporated in India.
iv.
(1)
The respective Managements of the Bank, subsidiaries and its associates which are companies incorporated
in India whose financial statements have been audited under the Act have represented to us, and the other
auditors of such subsidiaries and associates respectively that, to the best of their knowledge and belief,
as disclosed in schedule 18(16) to the consolidated financial statements, no funds (which are material
either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed
funds or share premium or any other sources or kind of funds) by the Bank or any of such subsidiaries and
associates to or in any other person(s) or entity(ies), including foreign entities (‘Intermediaries’), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly,
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Bank
or any of such subsidiaries and associates (‘Ultimate Beneficiaries’) or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries;
(2)
The respective Managements of the Bank, its subsidiaries and associate which are companies incorporated
in India whose financial statements have been audited under the Act have represented to us and the
other auditors of such subsidiaries and associates respectively that, as disclosed in schedule 18(16) to the
consolidated financial statements, to the best of their knowledge and belief, no funds (which are material
either individually or in the aggregate) have been received by the Company or any of such subsidiaries
and associates from any person(s) or entity(ies), including foreign entities (‘Funding Parties’), with the
understanding, whether recorded in writing or otherwise, that the Bank or any of such subsidiaries and
associates shall, directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries’) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
(3)
Based on the audit procedures, that which we have has been considered reasonable and appropriate in the
circumstances, performed by us and those performed by the auditors of the subsidiaries and associates
which are companies incorporated in India whose financial statements have been audited under the Act,
nothing has come to our or other auditor’s notice that has caused us or the other auditors to believe that
the representations under sub-clause (1) and (2) of Rule 11(e) contain any material misstatement.
255
Integrated ReportStatutory ReportsFinancial Statements
INDEPENDENT AUDITOR’S REPORT (Contd.)
v.
vi.
In our opinion and according to the information and explanations given to us, the dividend declared and / or
paid during the year the Group is in compliance with Section 123 of the Act.
As the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 (as amended), which provides for the
accounting software used by the Group and its associate companies for maintaining their books of account to
have the feature for recording of audit trail (edit log) facility and related matters, is applicable for the Group and
its associate companies only with effect from financial year beginning 01 April 2023, the reporting under clause
(g) of Rule 11 is currently not applicable.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No.105047W
For KKC & Associates LLP
Chartered Accountants
(Formerly Khimji Kunverji & Co LLP)
ICAI Firm Registration No.105146W/W100621
Tushar Kurani
Partner
Membership Number.: 118580
UDIN: 23118580BGXROZ3409
Place: Mumbai
Date: 22 April 2023
Gautam Shah
Partner
Membership Number.: 117348
UDIN: 23117348BGSZHP2495
Place: Mumbai
Date: 22 April 2023
256
Annual Report 2022-23
Annexure A to the Independent Auditors’ Report on the Consolidated
Financial Statements Of ICICI Bank Limited for the year ended 31 March 2023
(Referred to in paragraph “22f” under ‘Report on Other Legal and Regulatory Requirements’ section of our report of
even date)
Report on the Internal Financial Controls with reference to the aforesaid Consolidated Financial
Statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
Opinion
1.
2.
In conjunction with our audit of the consolidated financial statements of the Bank as of and for the year ended 31
March 2023, we have audited the internal financial controls with reference to consolidated financial statements of
ICICI Bank Limited (“the Holding Company”) and its subsidiary companies and its associate companies, which are
companies incorporated in India, as of that date.
In our opinion, and based on the consideration of the reports of the other auditors on internal financial controls
with reference to the consolidated financial statements, to the best of our information and according to the
explanations given to us, the Holding Company, its subsidiary companies and its associate companies, which
are companies incorporated in India, have, in all material respects, an adequate internal financial controls with
reference to consolidated financial statements and such internal financial controls with reference to consolidated
financial statements were operating effectively as at 31 March 2023, based on the internal control with reference
to consolidated financial statements criteria established by the respective companies 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 (“the ICAI”).
Responsibilities of Management and Those Charged with Governance for Internal Financial Controls
3.
The respective Board of Directors of the Holding Company, its subsidiary companies and its associate companies,
to whom reporting under clause (i) of sub-section 143 of the Act in respect of adequacy of the internal control
with reference to financial statements is applicable, which are companies incorporated in India, are responsible for
establishing and maintaining internal financial controls based on the internal control with reference to consolidated
financial statements criteria established by the respective companies considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (‘the
Guidance Note’) issued by the 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 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 for the Audit of the Internal Financial Controls with Reference to Consolidated
Financial Statements
4.
5.
Our responsibility is to express an opinion on the internal financial controls with reference to consolidated financial
statements of the Holding Company, its subsidiary companies and its associate companies, which are companies
incorporated in India, based on our audit. We conducted our audit in accordance with the Guidance Note issued
by the ICAI and the Standards on Auditing prescribed under Section 143(10) of the Act, to the extent applicable to
an audit of internal financial controls. 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 internal
financial controls with reference to consolidated financial statements 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 internal financial
controls with reference to consolidated financial statements and their operating effectiveness. Our audit of internal
financial controls with reference to consolidated financial statements included obtaining an understanding of such
internal financial controls with reference to consolidated financial statements, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the
257
Integrated ReportStatutory ReportsFinancial Statements Annexure A (Contd.)
assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the consolidated financial statements, whether due to fraud or error.
6.
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, is sufficient and appropriate to provide a basis for
our audit opinion on the internal financial controls with reference to consolidated financial statements of the Holding
Company, its subsidiary companies and its associate companies, which are companies incorporated in India.
Meaning of Internal Financial Controls with Reference to the Consolidated Financial Statements
7.
A Bank's internal financial control with reference to the consolidated financial statements is a process designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated
financial statements for external purposes in accordance with generally accepted accounting principles. A
Bank's internal financial control with reference to consolidated financial statements includes 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 Bank; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the Bank are being made only in accordance
with authorizations of management and directors of the Bank; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the Bank's assets that could have a
material effect on the consolidated financial statements.
Inherent Limitations of Internal Financial Controls with Reference to the Consolidated Financial
Statements
8.
Because of the inherent limitations of internal financial controls with reference to consolidated financial statements,
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 internal financial controls
with reference to consolidated financial statements to future periods are subject to the risk that the internal financial
controls with reference to consolidated financial statements may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Other Matters
9.
The auditors of ICICI Prudential Life Insurance Company Limited have reported, ‘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 2023 has been certified by the Appointed Actuary as per the IRDA Financial Statements Regulations,
and has been relied upon by us, as mentioned in “Other Matters” of our audit report on the standalone financial
statements for the year ended 31 March 2023. Accordingly, our opinion on the internal financial controls with
reference to standalone financial statements does not include reporting on the design and operating effectiveness
of the management’s internal controls over the valuation and accuracy of the aforesaid actuarial valuation’.
10. 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 2023
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
them as mentioned in “Other Matters” paragraph in our Audit Report on the financial statements for the year ended
31 March 2023. Accordingly, our opinion on the internal financial controls with reference to financial reporting
258
Annual Report 2022-23
Annexure A (Contd.)
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’.
11. Our report on the adequacy and operating effectiveness of the internal financial controls with reference to financial
statements 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. Our opinion is not modified in respect of the matters with
respect to our reliance on the work done by and on the reports of the other auditors.
12. Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal
financial controls system with reference to the Consolidated Financial Statements in so far as it relates to ten
subsidiary companies and two associate company, which are companies incorporated in India, is based on the
corresponding reports of the auditors of such subsidiaries and associates incorporated in India.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No.105047W
For KKC & Associates LLP
Chartered Accountants
(Formerly Khimji Kunverji & Co LLP)
ICAI Firm Registration No.105146W/W100621
Tushar Kurani
Partner
Membership Number.: 118580
UDIN: 23118580BGXROZ3409
Place: Mumbai
Date: 22 April 2023
Gautam Shah
Partner
Membership Number.: 117348
UDIN: 23117348BGSZHP2495
Place: Mumbai
Date: 22 April 2023
259
Integrated ReportStatutory ReportsFinancial Statements CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CONSOLIDATED BALANCE SHEET
at March 31, 2023
Schedule
At
31.03.2023
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
Goodwill on consolidation
TOTAL ASSETS
Contingent liabilities
Bills for collection
Significant accounting policies and notes to accounts
1
1A
2
2A
3
4
5
6
7
8
9
10
11
12
17 & 18
The Schedules referred to above form an integral part of the Consolidated Balance Sheet.
As per our Report of even date.
For and on behalf of the Board of Directors
` in ‘000s
At
31.03.2022
13,899,662
2,664,141
1,803,961,070
59,808,935
10,913,657,932
1,616,026,828
2,288,271,963
828,083,306
17,526,373,837
13,967,750
7,608,859
2,123,401,284
66,867,526
12,108,321,521
1,890,618,073
2,388,673,665
985,446,292
19,584,904,970
686,489,413
678,075,515
6,395,519,671
10,838,663,147
109,690,036
875,453,870
1,013,318
19,584,904,970
1,096,307,069
734,952,763
5,670,977,180
9,203,081,390
106,054,107
713,988,010
1,013,318
17,526,373,837
50,359,511,032
864,576,684
45,523,411,167
752,325,958
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration no.:
105047W
Tushar Kurani
Partner
Membership no.: 118580
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Gautam Shah
Partner
Membership no.: 117348
Mumbai
April 22, 2023
260
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended March 31, 2023
I.
INCOME
Interest earned
Other income
TOTAL INCOME
II. EXPENDITURE
Interest expended
Operating expenses
Provisions and contingencies (refer note 18.6)
TOTAL EXPENDITURE
III. PROFIT/(LOSS)
Net profit for the year (before share in profit of associates
and minority interest)
Add: Share of profit in associates
Net profit for the year before minority interest
Less: Minority interest
Net profit after minority interest
Profit brought forward
TOTAL PROFIT/(LOSS)
IV. APPROPRIATIONS/TRANSFERS
Transfer to Statutory Reserve
Transfer to/(from) 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
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
31.03.2023
` in ‘000s
Year ended
31.03.2022
13
14
15
16
1,210,668,098
651,119,912
1,861,788,010
954,068,654
621,294,514
1,575,363,168
505,433,879
824,390,232
187,333,629
1,517,157,740
411,666,711
731,517,275
174,340,856
1,317,524,842
344,630,270
257,838,326
9,982,876
354,613,146
14,246,738
340,366,408
508,988,514
849,354,922
79,742,000
-
878,200
-
-
1,043,810
26,254,000
50,255,680
34,794,463
656,386,769
849,354,922
7,544,279
265,382,605
14,281,645
251,100,960
385,155,990
636,256,950
58,349,000
-
15,742,037
-
-
3,828,798
15,328,500
657,420
13,852,335
528,498,860
636,256,950
48.86
47.84
2.00
36.21
35.44
2.00
17 & 18
The Schedules referred to above form an integral part of the Consolidated Profit and Loss Account.
As per our Report of even date.
For and on behalf of the Board of Directors
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration no.:
105047W
Tushar Kurani
Partner
Membership no.: 118580
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Gautam Shah
Partner
Membership no.: 117348
Mumbai
April 22, 2023
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
261
Integrated ReportStatutory ReportsFinancial Statements
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CONSOLIDATED CASH FLOW STATEMENT
for the year ended March 31, 2023
Cash flow from/(used in) operating activities
Profit/(loss) before taxes
Adjustments for:
Depreciation and amortisation
Net (appreciation)/depreciation on investments
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 expense
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 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
Year ended
31.03.2023
` in ‘000s
Year ended
31.03.2022
458,300,782
335,675,367
16,455,886
27,053,455
(3,653,501)
4,898,941
54,236,861
(542,579)
5,180,508
561,930,353
(158,286,285)
(1,638,931,648)
1,194,663,589
(166,076,201)
277,742,529
(490,888,016)
(108,754,258)
(37,711,921)
(24,676,808)
2,874,176
(658,250,590)
(680,053,222)
9,420,691
417,361,966
(268,917,978)
124,836,960
(34,794,463)
247,907,176
3,163,063
(466,694,904)
14,794,572
18,320,870
63,775,215
4,065,438
16,513,472
(56,635)
2,669,253
455,757,552
(166,685,392)
(1,349,047,011)
1,314,257,752
46,655,269
329,993,864
175,174,482
(49,817,733)
581,114,301
(18,599,746)
1,174,397
(375,789,070)
(393,214,419)
7,979,764
356,976,668
(346,030,278)
169,436,188
(13,852,335)
174,510,007
(1,268,443)
361,141,446
1,831,259,832
1,364,564,928
1,470,118,386
1,831,259,832
(i)
(ii)
(iii)
(A)
(B)
(C)
(D)
1. 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
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration no.:
105047W
Tushar Kurani
Partner
Membership no.: 118580
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Gautam Shah
Partner
Membership no.: 117348
Mumbai
April 22, 2023
262
Annual Report 2022-23 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 each
(March 31, 2022: 12,500,000,000 equity shares of ` 2 each)
Equity share capital
Issued, subscribed and paid-up capital
6,948,771,375 equity shares of ` 2 each
(March 31, 2022: 6,915,992,387 equity shares)
Add: 34,044,356 equity shares of ` 2 each
(March 31, 2022: 32,778,988 equity shares) issued during the year
Add: Forfeited equity shares1
TOTAL CAPITAL
1. On account of forfeiture of 266,089 equity shares of ` 10 each.
SCHEDULE 1A - EMPLOYEES STOCK OPTIONS OUTSTANDING
Opening balance
Additions during the year1
Deductions during the year2
Closing balance
At
31.03.2023
` in ‘000s
At
31.03.2022
25,000,000
25,000,000
13,897,543
13,831,985
68,088
65,558
13,965,631
13,897,543
2,119
2,119
13,967,750
13,899,662
At
31.03.2023
2,664,141
5,172,383
(227,665)
7,608,859
` in ‘000s
At
31.03.2022
31,010
2,642,190
(9,059)
2,664,141
1. Represents cost of stock options amortised over the vesting period recognised during the year.
2. Represents amount transferred to Securities Premium on account of exercise of employee stock options and to General Reserve on
lapses of employee stock options during the year.
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 year
Closing balance
At
31.03.2023
356,036,519
79,742,000
-
435,778,519
133,978,000
26,254,000
-
160,232,000
497,645,058
9,584,456
-
507,229,514
` in ‘000s
At
31.03.2022
297,687,519
58,349,000
-
356,036,519
118,649,500
15,328,500
-
133,978,000
489,694,731
7,950,327
-
497,645,058
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
IV. Investment reserve account
Opening balance
Additions during the year
Deductions during the year
Closing balance
V.
Investment fluctuation reserve2
Opening balance
Additions during the year
Deductions during the year
Closing balance
VI. Unrealised investment reserve3
Opening balance
Additions during the year
Deductions during the year
Closing balance
VII. Capital reserve
Opening balance
Additions during the year4,5
Deductions during the year
Closing balance6
VIII. Capital redemption reserve
Opening balance
Additions during the year
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
Opening balance
Additions during the year7
Deductions during the year8
Closing balance
XI. Revenue and other reserves
Opening balance
Additions during the year9
Deductions during the year9
Closing balance10
XII. Balance in profit and loss account5
Deductions during the year11
Balance in profit and loss account
TOTAL RESERVES AND SURPLUS
At
31.03.2023
` in ‘000s
At
31.03.2022
-
-
-
-
20,714,999
1,043,810
-
21,758,809
(358,641)
3,620
(874)
(355,895)
-
-
-
-
16,886,201
3,828,798
-
20,714,999
(56,658)
-
(301,983)
(358,641)
149,784,353
878,200
-
150,662,553
134,042,316
15,742,037
-
149,784,353
3,500,000
-
-
3,500,000
12,431,431
3,163,063
-
15,594,494
32,284,975
839,517
(2,206,076)
30,918,416
3,500,000
-
-
3,500,000
13,699,874
599,449
(1,867,892)
12,431,431
31,252,824
1,742,847
(710,696)
32,284,975
88,955,862
52,795,238
(54,995)
141,696,105
656,386,769
-
656,386,769
2,123,401,284
71,497,594
20,297,813
(2,839,545)
88,955,862
528,498,860
(19,510,346)
508,988,514
1,803,961,070
1. Includes ` 9,576.3 million (March 31, 2022: ` 7,923.3 million) on exercise of employee stock options.
2. Represents amount transferred by the Bank to Investment Fluctuation Reserve (IFR) on net profit on sale of AFS and HFT investments
during the period. The amount not less than the lower of net profit on sale of AFS and HFT category investments during the period
or net profit for the period 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.
264
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
3. Represents unrealised profit/(loss) pertaining to the investments of venture capital funds.
4. 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.
5. The Bank had shifted certain securities from held-to-maturity category to available-for-sale category on May 3, 2017. RBI through
its order dated May 3, 2021 has directed the Bank to appropriate the net profit made on sale of these investments during FY2018 to
Capital Reserve. Accordingly, an amount of ` 15,091.1 million was transferred by the Bank from Balance in Profit and Loss account
to Capital Reserve during FY2022.
6. Includes capital reserve on consolidation amounting to ` 79.1 million (March 31, 2022: ` 79.1 million).
7. Represents gain on revaluation of premises carried out by the Bank and ICICI Home Finance Company Limited.
8. Represents amount transferred from Revaluation Reserve to General Reserve on account of incremental depreciation charge on
revaluation, revaluation surplus on premises sold or loss on revaluation on account of certain assets which were held for sale.
9. Includes ` 1,482.1 million towards addition in fair value change account (March 31, 2022: reduction amounting to ` 2,471.4 million) of
ICICI Prudential Life Insurance Company Limited.
10. Includes unrealised profit/(loss), net of tax, of ` 161.5 million (March 31, 2022: ` 206.4 million) pertaining to the investments in the
available-for-sale category of ICICI Bank UK PLC.
11. Represents reduction due to discontinuation of ICICI Lombard General Insurance Company Limited from consolidation during FY2022.
` in ‘000s
SCHEDULE 2A - MINORITY INTEREST
Opening minority interest
Subsequent increase/(decrease) during the year1
CLOSING MINORITY INTEREST
At
31.03.2023
At
31.03.2022
59,808,935
95,883,393
7,058,591
(36,074,458)
66,867,526
59,808,935
1. FY2022 includes deduction of minority interest of ` 39,052.5 million relating to ICICI Lombard General Insurance Company Limited
subsequent to ICICI Lombard General Insurance Company Limited being ceased to be a subsidiary.
SCHEDULE 3 - DEPOSITS
A.
I. Demand deposits
i)
From banks
ii) From others
II. Savings bank deposits
III. Term deposits
i)
From banks
ii) From others
TOTAL DEPOSITS
B.
I. Deposits of branches in India
II. Deposits of branches/subsidiaries outside India
TOTAL DEPOSITS
At
31.03.2023
` in ‘000s
At
31.03.2022
49,978,962
79,321,836
1,608,349,299
1,554,865,124
3,848,298,564
3,670,305,566
113,475,314
71,532,495
6,488,219,382
5,537,632,911
12,108,321,521
10,913,657,932
11,638,079,242
10,527,203,264
470,242,279
386,454,668
12,108,321,521
10,913,657,932
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
SCHEDULE 4 - BORROWINGS
I. Borrowings in India
Reserve Bank of India1
i)
ii) Other banks
iii) Financial institutions2
iv) Borrowings in the form of
At
31.03.2023
` in ‘000s
At
31.03.2022
18,899,200
71,911,178
608,942,331
-
50,892,853
323,264,820
a) Deposits
b) Commercial paper
c) Bonds and debentures (excluding subordinated debt)
36,624,470
98,022,849
506,782,072
31,004,597
90,353,072
430,564,188
v) Capital instruments
a)
b)
Innovative Perpetual Debt Instruments (IPDI)
(qualifying as additional Tier 1 capital)
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
51,400,000
66,950,000
53,206,653
1,445,788,753
93,504,927
1,086,534,457
5,962,274
133,419,412
305,447,634
444,829,320
1,890,618,073
5,529,406
181,504,693
342,458,272
529,492,371
1,616,026,828
1. Represents borrowings made under Liquidity Adjustment Facility (LAF) and Standing Liquidity Facility (SLF).
2. Includes borrowings made by the Group under repo and refinance.
3. Secured borrowings in I and II above amounting to ` 239,969.1 million (March 31, 2022: ` 232,515.3 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.
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
I.
II.
Bills payable
Inter-office adjustments (net)
III.
Interest accrued
IV. Sundry creditors
V. General provision for standard assets
VI. Unrealised loss on foreign exchange and derivative contracts
VII. Others (including provisions)1
TOTAL OTHER LIABILITIES AND PROVISIONS
At
31.03.2023
136,037,076
3,228,016
33,390,137
242,830,603
49,946,771
183,764,747
336,248,942
985,446,292
` in ‘000s
At
31.03.2022
130,686,122
4,418,106
27,524,211
206,506,321
44,586,271
112,918,929
301,443,346
828,083,306
1. Includes contingency provision of the Bank amounting to ` 131,000.0 million (March 31, 2022: ` 74,500.0 million) and specific provision
for standard loans amounting to ` 14,946.9 million (March 31, 2022: ` 30,203.0 million) by the Bank.
266
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
At
31.03.2023
` in ‘000s
At
31.03.2022
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA
I.
Cash in hand (including foreign currency notes)
86,812,982
72,274,785
II. Balances with Reserve Bank of India
(a) in current account
(b) in other accounts1
480,256,431
530,012,284
119,420,000
494,020,000
TOTAL CASH AND BALANCES WITH RESERVE BANK OF INDIA
686,489,413
1,096,307,069
1. Represents lending under Liquidity Adjustment Facility (LAF) and Standing Deposit Facility (SDF).
SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND
SHORT NOTICE
I.
In India
i)
Balances with banks
a)
In current accounts
b)
In other deposit accounts
ii) Money at call and short notice
a) With banks
b) With other institutions1
TOTAL
II. Outside India
i)
ii)
In current accounts
In other deposit accounts
iii) Money at call and short notice
TOTAL
At
31.03.2023
` in ‘000s
At
31.03.2022
3,103,280
2,150,158
107,287,660
58,739,519
8,217,000
-
59,652,392
58,284,515
178,260,332
119,174,192
310,635,743
332,048,410
26,782,094
179,630,804
162,397,346
104,099,357
499,815,183
615,778,571
TOTAL BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
678,075,515
734,952,763
1. Includes lending under reverse repo.
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
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 (including commercial paper and certificate
of deposits)
At
31.03.2023
` in ‘000s
At
31.03.2022
3,960,623,208
3,255,021,732
-
-
127,225,123
131,221,761
526,539,870
415,992,085
v) Assets held to cover linked liabilities of life insurance business1
1,440,580,565
1,508,663,020
vi) Cost of equity investment in associates2
vii)
Others (mutual fund units, pass through certificates, security
receipts and other related investments)3
20,040,640
20,040,640
172,557,780
134,270,515
TOTAL INVESTMENTS IN INDIA
6,247,567,186
5,465,209,753
II.
Investments outside India [net of provisions]
i) Government securities
89,972,472
152,078,246
ii) Others (equity shares, bonds and certificate of deposits)
57,980,013
53,689,181
TOTAL INVESTMENTS OUTSIDE INDIA
TOTAL INVESTMENTS
A.
Investments in India
Gross value of investments1
147,952,485
205,767,427
6,395,519,671
5,670,977,180
6,275,011,504
5,486,621,394
Less: Aggregate of provision/depreciation/(appreciation)
27,444,318
21,411,641
Net investments
B.
Investments outside India
Gross value of investments
6,247,567,186
5,465,209,753
153,368,477
208,954,192
Less: Aggregate of provision/depreciation/(appreciation)
5,415,992
3,186,765
Net investments
TOTAL INVESTMENTS
147,952,485
205,767,427
6,395,519,671
5,670,977,180
1. Includes net appreciation amounting to ` 169,588.6 million (March 31, 2022: ` 244,271.4 million) on investments held to cover linked
liabilities of life insurance business.
2. Includes goodwill on consolidation of associates amounting to ` 221.9 million (March 31, 2022: ` 221.9 million).
3. Includes share in networth of associates as per equity method as prescibed by AS 23.
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Annual Report 2022-23
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
SCHEDULE 9 - ADVANCES [net of provisions]
A.
i)
Bills purchased and discounted1
At
31.03.2023
` in ‘000s
At
31.03.2022
497,557,667
482,956,949
ii) Cash credits, overdrafts and loans repayable on demand
2,866,747,206
2,342,314,744
iii) Term loans
TOTAL ADVANCES
7,474,358,274
6,377,809,697
10,838,663,147
9,203,081,390
B.
i)
Secured by tangible assets (includes advances against book debts)
7,713,019,424
6,701,716,660
ii) Covered by bank/government guarantees
iii) Unsecured
TOTAL ADVANCES
C.
I. Advances in India
i)
Priority sector
ii) Public sector
iii) Banks
iv) Others
TOTAL ADVANCES IN INDIA
II. Advances outside India
i) Due from banks
ii) Due from others
a) Bills purchased and discounted
b) Syndicated and term loans
c) Others
TOTAL ADVANCES OUTSIDE INDIA
TOTAL ADVANCES
1. Net of bills re-discounted amounting to ` 10,000.0 million (March 31, 2022: Nil).
159,202,710
185,673,079
2,966,441,013
2,315,691,651
10,838,663,147
9,203,081,390
2,807,812,582
2,491,680,887
516,152,443
483,782,406
7,698,171
432,346
6,769,499,593
5,417,164,764
10,101,162,789
8,393,060,403
8,076,480
7,165,905
152,553,948
175,464,049
245,267,859
235,061,192
331,602,071
392,329,841
737,500,358
810,020,987
10,838,663,147
9,203,081,390
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
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
Depreciation
At March 31 of preceding year
Charge during the year2
Deductions during the year
Total depreciation
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
Depreciation
At March 31 of preceding year
Charge during the year
Deductions during the year
Total depreciation
Net block
III. Lease assets
Gross block
At cost at March 31 of preceding year
Additions during the year
Deductions during the year
Closing balance4
Depreciation
At March 31 of preceding year
Charge during the year
Deductions during the year
Total depreciation, accumulated lease adjustment and provisions
Net block
TOTAL FIXED ASSETS
At
31.03.2023
` in ‘000s
At
31.03.2022
94,345,827
2,793,216
(2,798,606)
94,340,437
23,514,011
2,486,973
(455,659)
25,545,325
68,795,112
98,784,940
18,437,437
(6,219,745)
111,002,632
66,817,309
12,459,081
(6,101,926)
73,174,464
37,828,168
17,890,746
11,660
-
17,902,406
14,636,086
199,564
-
14,835,650
3,066,756
109,690,036
95,782,081
3,334,955
(4,771,209)
94,345,827
21,854,971
2,375,067
(716,027)
23,514,011
70,831,816
97,137,491
15,252,194
(13,604,745)
98,784,940
66,259,069
10,737,093
(10,178,853)
66,817,309
31,967,631
17,735,221
155,525
-
17,890,746
14,448,172
187,914
-
14,636,086
3,254,660
106,054,107
1. Includes net revaluation gain amounting to ` 811.7 million (March 31, 2022: ` 1,742.8 million) on account of revaluation carried out by
the Bank and its housing finance subsidiary.
2. Including depreciation charge on account of revaluation of ` 755.2 million for the year ended March 31, 2023 (year ended March 31,
2022: ` 703.1 million).
3. Includes assets amounting to ` 428.8 million of the Bank (March 31, 2022: ` 558.5 million) which are held for sale.
4. Includes assets taken on lease by the Bank amounting to ` 1,187.8 million (March 31, 2022: ` 1,176.1 million).
270
Annual Report 2022-23
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
SCHEDULE 11 - OTHER ASSETS
I.
II.
Inter-office adjustments (net)
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 18.9)
At
31.03.2023
` in ‘000s
At
31.03.2022
-
-
151,100,647
108,389,915
20,372,701
26,241,723
379,124
337,907
-
-
9,009,963
4,460,876
54,892,587
40,100,556
76,194,441
79,484,847
IX. Deposits in Rural Infrastructure and Development Fund
216,216,187
264,194,161
X. Unrealised gain on foreign exchange and derivative contracts
178,022,993
105,347,160
XI. Others
TOTAL OTHER ASSETS
169,265,227
85,430,865
875,453,870
713,988,010
1. No assets were sold by the Bank during the year ended March 31, 2023 (year ended March 31, 2022: ` 563.6 million).
2. Net of provision held by the Bank amounting to ` 29,011.8 million (March 31, 2022: ` 29,011.8 million).
SCHEDULE 12 - CONTINGENT LIABILITIES
I.
Claims against the Group not acknowledged as debts
II. Liability for partly paid investments
At
31.03.2023
` in ‘000s
At
31.03.2022
88,006,837
89,527,688
4,790,087
7,009,157
III. Liability on account of outstanding forward exchange contracts1
15,492,543,076
10,757,369,659
IV. Guarantees given on behalf of constituents
a)
In India
b) Outside India
V. Acceptances, endorsements and other obligations
VI. Currency swaps1
1,102,115,003
877,490,076
134,004,861
158,594,796
435,202,811
458,778,736
570,626,929
502,108,785
VII. Interest rate swaps, currency options and interest rate futures1
32,435,271,591
32,634,035,960
VIII. Other items for which the Group is contingently liable
96,949,837
38,496,310
TOTAL CONTINGENT LIABILITIES
1. Represents notional amount.
50,359,511,032
45,523,411,167
271
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Profit and Loss Account
SCHEDULE 13 - INTEREST EARNED
I.
II.
III.
Interest/discount on advances/bills
Income on investments (including dividend)
Interest on balances with Reserve Bank of India and other inter-bank
funds
IV. Others1,2
TOTAL INTEREST EARNED
Year ended
31.03.2023
` in ‘000s
Year ended
31.03.2022
879,292,351
668,865,377
279,050,297
219,906,420
23,054,570
18,195,960
29,270,880
47,100,897
1,210,668,098
954,068,654
1. Includes interest on income tax refunds amounting to ` 1,203.2 million (March 31, 2022: ` 2,434.3 million).
2. Includes interest and amortisation of premium on non-trading interest rate swaps and foreign currency swaps.
SCHEDULE 14 - OTHER INCOME
I.
Commission, exchange and brokerage
II. Profit/(loss) on sale of investments (net)
III. Profit/(loss) on revaluation of investments (net)
IV. Profit/(loss) on sale of land, buildings and other assets (net)1
Year ended
31.03.2023
` in ‘000s
Year ended
31.03.2022
196,484,672
172,883,870
12,730,117
(1,317,590)
542,579
23,145,295
1,981,586
56,635
V. Profit/(loss) on exchange/derivative transactions (net)
30,509,008
29,933,143
VI. Premium and other operating income from insurance business
411,367,848
389,595,741
VII. Miscellaneous income (including lease income)
TOTAL OTHER INCOME
1. Includes profit/(loss) on sale of assets given on lease.
803,278
3,698,244
651,119,912
621,294,514
Year ended
31.03.2023
` in ‘000s
Year ended
31.03.2022
SCHEDULE 15 - INTEREST EXPENDED
I.
II.
Interest on deposits
394,765,407
336,132,833
Interest on Reserve Bank of India/inter-bank borrowings
13,380,975
4,402,009
III. Others (including interest on borrowings of erstwhile ICICI Limited)
97,287,497
71,131,869
TOTAL INTEREST EXPENDED
505,433,879
411,666,711
272
Annual Report 2022-23
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Consolidated Profit and Loss Account (Contd.)
SCHEDULE 16 - OPERATING EXPENSES
I.
Payments to and provisions for employees
II. Rent, taxes and lighting1
III. Printing and stationery
IV. Advertisement and publicity
V. Depreciation on 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. Claims and benefits paid pertaining to insurance business
XV. Other expenses pertaining to insurance business2
XVI. Other expenditure3
TOTAL OPERATING EXPENSES
Year ended
31.03.2023
` in ‘000s
Year ended
31.03.2022
152,341,687
123,416,025
15,846,567
14,085,917
2,713,187
32,807,911
14,946,054
199,538
137,405
248,666
1,771,894
7,475,175
34,644,161
14,788,575
32,599,179
53,426,955
2,232,877
23,313,796
13,112,160
187,914
123,496
219,598
1,707,140
7,092,062
26,994,748
13,025,817
25,697,664
59,037,802
363,124,210
339,724,982
97,319,068
81,545,277
824,390,232
731,517,275
1. Includes lease expense amounting to ` 12,512.8 million (March 31, 2022: ` 11,389.0 million).
2. Includes commission expenses and reserves for actuarial liabilities (including the investible portion of the premium on the unit-linked
policies).
3. Includes expenses on purchase of Priority Sector Lending Certificates (PSLC) for the Bank amounting to ` 15,035.2 million (March 31,
2022: ` 13,206.1 million).
273
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CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the 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 or where
the objective of control is not to obtain economic benefit from their activities. All significant inter-company balances and
transactions with subsidiaries and entities consolidated as per AS 21 have been 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) 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.
274
Annual Report 2022-23 The consolidated financial statements include the results of the following entities in addition to the Bank.
Sr.
no.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Name of the entity
ICICI Bank UK PLC
ICICI Bank Canada
ICICI Securities Limited
Nature of
relationship
Country of
incorporation
United Kingdom Subsidiary
Subsidiary
Canada
Subsidiary
India
ICICI Securities Holdings Inc.1
ICICI Securities Inc.1
ICICI Securities Primary Dealership
Limited
ICICI Venture Funds Management
Company Limited
ICICI Home Finance Company Limited
ICICI Trusteeship Services Limited
ICICI Investment Management
Company Limited
ICICI International Limited
ICICI Prudential Pension Funds
Management Company Limited2
USA
USA
India
India
India
India
India
Mauritius
India
ICICI Prudential Life Insurance
Company Limited
ICICI Prudential Asset Management
Company Limited
ICICI Prudential Trust Limited
ICICI Strategic Investments Fund
ICICI Lombard General Insurance
Company Limited3
I-Process Services (India) Private
Limited3
India
India
India
India
India
India
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Consolidated
as per AS 21
Associate
Associate
19. NIIT Institute of Finance Banking and
India
Associate
Insurance Training Limited3
20.
ICICI Merchant Services Private
Limited3
India Infradebt Limited3
India Advantage Fund-III3
India Advantage Fund-IV3
21.
22.
23.
24. Arteria Technologies Private Limited3
India
India
India
India
India
Associate
Associate
Associate
Associate
Associate
Nature of business
Banking
Banking
Securities broking and
merchant banking
Holding company
Securities broking
Securities investment,
trading and underwriting
Private equity/venture
capital fund management
Housing finance
Trusteeship services
Asset management and
Investment advisory
Asset management
Pension fund
management and Points
of Presence
Life insurance
Ownership
interest
100.00%
100.00%
74.85%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
51.27%
Trusteeship services
Venture capital fund
50.80%
100.00%
General insurance
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
48.02%
19.00%
18.79%
19.01%
42.33%
24.10%
47.14%
19.98%
Subsidiary
Asset management
51.00%
1. 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.
2. ICICI Prudential Pension Funds Management Company Limited is a wholly owned subsidiary of ICICI Prudential Life Insurance
Company Limited.
3. 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’.
275
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.) 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.
SIGNIFICANT ACCOUNTING POLICIES
1. Translation of foreign currency items
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 recognised 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, 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.
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 on discounted instruments is recognised over the tenure of the instrument.
c) Dividend income is accounted on an accrual basis when the right to receive the dividend is established.
d)
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.
e) Project appraisal/structuring fee is accounted for on the completion of the agreed service.
f)
g)
Arranger fee is accounted for as income when a significant portion of the arrangement is completed and right
to receive is established.
Commission received on guarantees and letters of credit issued is amortised on a straight-line basis over the
period of the guarantee/letters of credit.
h) Fund management and portfolio management fees are recognised on an accrual basis.
The annual/renewal fee on credit cards, debit cards and prepaid cards are amortised on a straight line basis
over one year.
All other fees are accounted for as and when they become due where the Group is reasonably certain of
ultimate collection.
Fees paid/received for priority sector lending certificates (PSLC) is amortised on straight-line basis over the
period of the certificate.
i)
j)
k)
276
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
l)
m)
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 (net of goods and service tax) 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.
n)
In case of life insurance business, reinsurance premium ceded/accepted is accounted in accordance with the
terms of the relevant treaties/arrangements with the reinsurer/insurer. Profit commission on reinsurance ceded
is netted off against premium ceded on reinsurance.
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 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 options granted vest in a graded
manner and may be exercised within a specified period.
Till March 31, 2021, the Bank recognised cost of stock options granted under Employee Stock Option Scheme, using
intrinsic value method. Under Intrinsic value method, options 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.
Pursuant to RBI clarification dated August 30, 2021, the cost of stock options granted after March 31, 2021 is
recognised based on fair value method. The cost of stock options granted up to March 31, 2021 continues to be
recognised on intrinsic value method. The Bank uses Black-Scholes model to fair value the options on the grant
date and the inputs used in the valuation model include assumptions such as the expected life of the share option,
volatility, risk free rate and dividend yield.
The cost of stock options is recognised in the profit and loss account over the vesting period.
ICICI Prudential Life Insurance Company Limited and ICICI Securities Limited have also formulated similar stock
option schemes for their employees for grant of equity shares of their respective companies. The intrinsic value
method is followed by them to account for their 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 closing price on the stock exchange with the
highest trading volume of the underlying shares of the Bank, ICICI Prudential Life Insurance Company Limited and
ICICI Securities Limited, immediately prior to the grant date.
The banking subsidiaries namely, ICICI Bank UK PLC and ICICI Bank Canada, account for the cost of the options
granted to employees by ICICI Bank using the fair value method as followed by the Bank.
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,
277
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
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 and change in tax rate.
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 by 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.
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 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. Amount
payable on lapsed/discontinued policies are accounted for on expiry of lock-in-period of these policies. Surrenders,
withdrawals and lapsation are disclosed at net of charges recoverable. Claim settlement cost, legal and other fees
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 actuarial liabilities for life policies in force and policies where premiums
are discontinued but a liability exists as at the valuation date, are calculated in accordance with accepted actuarial
practice, requirements of Insurance Act, 1938, as amended from time to time, and regulations notified by the Insurance
Regulatory and Development Authority of India, relevant Guidance Notes and Actuarial Practice Standards of the
Institute of Actuaries of India.
7. 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.
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.
278
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
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 4.99% to 6.58% per annum (previous year –
3.67% to 6.30% per annum).
Mortality rates used are based on the published “Indian Assured Lives Mortality (2012-2014) Ult.” mortality table
for assurances and “Indian Individual Annuitant’s Mortality Table (2012-15)” 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 least at current levels, in respect of renewal expenses, with no allowance for future
improvements. Per policy renewal expenses for regular premium policies are assumed to inflate at 4.90% per annum
(previous year – 4.59%).
8. 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.
9. 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 recognised trusts which administer the funds on their own account or
through insurance companies.
Actuarial valuation of the gratuity liability is determined by an independent 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. The actuarial gains or losses arising during the
year are recognised in the profit and loss account.
Superannuation Fund and National Pension Scheme
The Bank has a superannuation fund, a defined contribution plan, which is administered by trustees and managed
by insurance companies. The Bank contributes 15.0% of the total annual basic salary for certain employees to
superannuation funds. ICICI Prudential Life Insurance Company Limited, ICICI Prudential Asset Management
Company Limited, ICICI Venture Funds Management Company Limited and ICICI Investment Management Company
Limited have accrued for superannuation liability based on a percentage of basic salary payable to eligible employees
for the period of service.
The Group contributes upto 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
employees are given an option to receive the amount in cash in lieu of such contributions along with their monthly
salary during their employment.
The amounts so contributed/paid by the Group to the superannuation fund and NPS or to employees during the year
are recognised in the profit and loss account. The Group has no liability towards future benefits under superannuation
fund and national pension scheme other than its annual contribution.
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
279
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
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 independent 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. The Group recognises
such contribution as an expense in the year in which it is incurred.
Interest payable on provident fund should not be lower than the statutory rate of interest declared by the Central
Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. Actuarial valuation for
the interest obligation 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.
10. 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.
11. 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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Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
12. Investments
i)
Investments of the Bank are accounted for in accordance with the extant RBI guidelines on investment classification
and valuation.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
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.
All investments are classified into ‘Held to Maturity’ (HTM), ‘Available for Sale’ (AFS) and ‘Held for Trading’
(HFT) on the date of purchase as per the extant RBI guidelines on investment classification and valuation.
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.
Investments that are held principally for resale within 90 days from the date of purchase are classified as HFT
securities. Investments which the Bank intends to hold till maturity are classified as HTM securities. Investments
which are not classified in either of the above categories are classified under AFS securities.
Costs including brokerage and commission pertaining to investments paid at the time of acquisition and broken
period interest (the amount of interest from the previous interest payment date till the date of purchase of
instruments) on debt instruments are charged to the profit and loss account.
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. The
depreciation on securities acquired by way of conversion of outstanding loans is fully provided. Non-performing
investments are identified based on the RBI guidelines.
HTM 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.
AFS and HFT 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 AFS, 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 ‘AFS’ and ‘HFT’ categories is as per the rates published by 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.
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.
Unquoted equity shares are valued at the break-up value, if the latest balance sheet is available, or at ` 1, as
per RBI guidelines.
The units of Venture Capital Funds (VCFs) are valued at the net asset value (NAV) declared by the VCF. If the
latest balance sheet is not available continuously for more than 18 months, the units of VCF are valued at ` 1,
as per RBI guidelines.
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Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
l.
m.
n.
o.
p.
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 Bank makes additional provisions on the security receipts
based on the remaining period to 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.
Depreciation/provision on non-performing investments is made as per internal provisioning norms, subject to
minimum provisioning requirements of RBI.
Gain/loss on sale of investments is recognised in the profit and loss account. Cost of investments is computed
based on the First-In-First-Out (FIFO) method. The profit from sale of investment under HTM category, net of
taxes and transfer to statutory reserve is transferred to “Capital Reserve” in accordance with the 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.
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.
ii)
iii)
iv)
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.
v)
The Bank’s overseas banking subsidiaries account for unrealised gain/loss, net of tax, on investment in ‘AFS’/‘Fair
Value Through Other Comprehensive Income’ (FVOCI) category directly in their reserves. Further unrealised gain/
loss on investment in ‘HFT’/‘Fair Value Through Profit and Loss’ (FVTPL) category is accounted directly in the profit
and loss account. Investments in ‘HTM’/‘amortised cost’ category are carried at amortised cost.
In the case of life insurance business, 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.
282
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
vi)
Valuation of investments (other than linked business) is done on the following basis:
a.
b.
All debt securities including government securities and redeemable preference shares are considered as ‘held
to maturity’ and stated at historical cost, subject to amortisation of premium or accretion of discount over the
period of maturity/holding on a constant yield basis.
Listed equity shares and equity exchange traded funds (ETF) 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). Unlisted
equity shares are stated at acquisition cost less impairment, if any. Equity shares lent under the Securities
Lending and Borrowing scheme (SLB) continue to be recognised in the Balance Sheet as the Company retains
all the associated risks and rewards of these securities. Non-traded and thinly traded equity share are valued at
last available price on NSE/BSE or the value derived using valuation principle of net worth per share, whichever
is lower.
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.
The Bank’s life insurance subsidiary 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
previously impaired loss is also reversed on disposal/realisation of securities and results thereon are recognised.
The total proportion of investments for which subsidiaries have applied accounting policies different from the Bank
as mentioned above, is approximately 21.95% of the total investments at March 31, 2023.
13. 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:
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 but
which are standard as per the extant RBI guidelines, are classified as NPAs to the extent of amount outstanding
in the respective host country. Further, NPAs are classified into sub-standard, doubtful and loss assets based
on the criteria stipulated by RBI. Interest on non-performing advances is transferred to an interest suspense
account and not recognised in profit and loss account until received.
The Bank considers an account as restructured, where for economic or legal reasons relating to the borrower’s
financial difficulty, the Bank grants concessions to the borrower, that the Bank would not otherwise consider.
The moratorium granted to the borrowers based on RBI guidelines is not accounted as restructuring of loan.
The RBI guidelines on ‘Resolution Framework for COVID-19-related Stress’ provide a prudential framework for
resolution plan of certain loans. The borrowers where resolution plan was implemented under these guidelines
are classified as standard restructured.
In the case of corporate loans and advances, provisions are made for sub-standard and doubtful assets as
per internal provisioning norms, subject to minimum provisioning requirements of RBI. Loss assets and the
unsecured portion of doubtful assets are fully provided. For impaired loans and advances held in overseas
branches, which are performing as per RBI guidelines, provisions are made as per the host country regulations.
For loans and advances held in overseas branches, which are NPAs both as per RBI guidelines and host
country guidelines, provisions are made at the higher of the provisions required as per internal provisioning
283
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
norms and host country regulations. Provisions on homogeneous non-performing retail loans and advances,
subject to minimum provisioning requirements of RBI, are made on the basis of the ageing of the loan. The
specific provisions on non-performing retail loans and advances held by the Bank are higher than the minimum
regulatory requirements.
In respect of non-retail loans reported as fraud to RBI, the entire amount is provided 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 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.
The Bank makes provision on restructured loans subject to minimum requirements as per RBI guidelines.
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 or host
country regulations, as applicable.
In terms of RBI guideline, the NPAs are written-off in accordance with the Bank’s policy. Amounts recovered
against bad debts written-off 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 aggregate provision required as per host country regulations 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 additional provisions as per RBI guidelines for the cases where viable resolution plan has
not been implemented within the timelines prescribed by the RBI from the date of default. These additional
provisions are written-back on satisfying the conditions for reversal as per RBI guidelines.
The Bank, on prudent basis, has made contingency provision on certain loan portfolios, including borrowers
who had taken moratorium at any time during FY2021 under the extant RBI guidelines related to Covid-19
regulatory package. The Bank also makes additional contingency provision on certain standard assets. The
contingency provision is included in ‘Schedule 5 - Other Liabilities and Provisions’.
The Bank has a Board approved policy for making floating provision, 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.
284
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
ii)
iii)
iv)
In the case of the Bank’s housing finance subsidiary, loans and other credit facilities are classified as per the
Master Directions – Non Banking Financial Company – Housing Finance Companies (Reserve Bank) Directions,
2021 issued by Reserve Bank of India (‘Master Direction’). Further, NPAs are classified into sub-standard,
doubtful and loss assets based on criteria stipulated in the Master Direction. Additional provisions are made
against specific non-performing assets over and above what is stated above, if in the opinion of management,
increased provisions are necessary. General provision on restructured loans is made as per RBI guidelines.
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 5.95% of the total loans at March 31, 2023.
14. 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, 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 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 based on the method prescribed in the guidelines.
As per the RBI guidelines issued on September 24, 2021, gain realised at the time of securitisation of loans is
accounted through profit and loss account on completion of transaction. The Bank accounts for any loss arising from
securitisation immediately at the time of sale.
The unrealised gains, associated with expected future margin income is recognised in profit and loss account on
receipt of cash, after absorbing losses, if any.
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 direct assignment of loan assets
is recognised at the time of sale. As per the RBI guidelines issued on September 24, 2021, any loss or realised gain
from sale of loan assets through direct assignment is accounted through profit and loss account on completion of
transaction.
The acquired loans is carried at acquisition cost. In case premium is paid on a loan acquired, premium is amortised
over the loan tenure.
285
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
In accordance with RBI guidelines, in case of non-performing loans sold to Asset Reconstruction Companies (ARCs),
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”.
15. 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.
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, assets individually costing up to ` 5,000/- are depreciated fully in the year of acquisition. 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 valued at the market value on a distress sale
basis or value of loan, whichever is lower. Further, the Bank creates provision on these assets as per the extant RBI
guidelines or specific RBI directions.
16. Foreign exchange and derivative contracts
The forward exchange contracts that are not intended for trading and are entered into to establish the amount of
reporting currency required or available at the settlement date of a transaction are effectively valued at closing spot
rate. The premium or discount arising on inception of such forward exchange contracts is amortised over the life
of the contract as interest income/expense. 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.
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. The Group identifies the hedged item (asset or liability) at the inception of the transaction itself.
Hedge effectiveness is ascertained at the time of the inception of the hedge and periodically thereafter. Based on
RBI circular issued on June 26, 2019, the accounting of hedge relationships established after June 26, 2019 is in
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Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
accordance with the Guidance note on Accounting for Derivative Contracts issued by ICAI. The swaps under hedge
relationships established prior to that date are accounted for on an accrual basis and are not marked to market
unless their underlying transaction is marked-to-market. Gains or losses arising from hedge ineffectiveness, if any,
are recognised in the profit and loss account 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.
The 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.
17. 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.
For assets other than premises, the Group assesses at each balance sheet date whether there is any indication that
an asset may be impaired. Impairment loss, if any, is provided in the profit and loss account to the extent the carrying
amount of assets exceeds their estimated recoverable amount.
18. Lease transactions
Lease payments including cost escalations 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. The leases of property, plant and equipment, where
substantially all of the risks and rewards of ownership are transferred to the Bank are classified as finance lease.
Minimum lease payments under finance lease are apportioned between the finance costs and outstanding liability.
19. 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 for 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.
20. Bullion transaction
The Bank deals in bullion business on a consignment basis. The bullion is priced to the customers based on the price
quoted by the supplier. The difference between price recovered from customers and cost of bullion is accounted for
as commission at the time of sales to the customers. The Bank also deals in bullion on a borrowing and lending basis
and the interest expense/income is accounted on accrual basis.
21. Share issue expenses
Share issue expenses are deducted from Share Premium Account in terms of Section 52 of the Companies Act, 2013
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Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
SCHEDULE 18
NOTES FORMING PART OF THE ACCOUNTS
The following additional disclosures have been made taking into account the requirements of Accounting Standards
(ASs) and Reserve Bank of India (RBI) guidelines.
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.
` in million, except per share data
Particulars
Net profit/(loss) attributable to equity share holders
Nominal value per share (`)
Basic earnings per share (`)
Effect of potential equity shares (`)
Diluted earnings per share (`)1
Reconciliation between weighted shares used in computation of basic and diluted earnings per share
Basic weighted average number of equity shares outstanding
Add: Effect of potential equity shares
Diluted weighted average number of equity shares outstanding
6,966,305,957
138,684,400
7,104,990,357
6,933,652,636
142,291,212
7,075,943,848
Year ended
March 31, 2023
340,366.4
2.00
48.86
(1.02)
47.84
Year ended
March 31, 2022
251,101.0
2.00
36.21
(0.77)
35.44
1. The dilutive impact is due to options granted to employees by the Group.
2. Related party transactions
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
Sr. no. Name of the entity
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
ICICI Lombard General Insurance Company Limited
Arteria Technologies Private Limited
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
ICICI Foundation for Inclusive Growth
Cheryl Advisory Private Limited
Nature of relationship
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Other related entity
Other related entity
Other related entity
288
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
Key management personnel
Sr. no. Name of the Key management personnel
Relatives of the Key management personnel
1.
Mr. Sandeep Bakhshi
2.
Mr. Anup Bagchi
3.
Mr. Sandeep Batra
4.
5.
Mr. Rakesh Jha
(w.e.f September 2, 2022)
Ms. Vishakha Mulye
(upto May 31, 2022)
• Ms. Mona Bakhshi
• Mr. Shivam Bakhshi
• Ms. Aishwarya Bakshi
• Ms. Esha Bakhshi
• Ms. Minal Bakhshi
• Mr. Sameer Bakhshi
• Mr. Ritwik Thakurta
• Mr. Ashwin Pradhan
• Ms. Radhika Bakhshi
• Ms. Mitul Bagchi
• Mr. Aditya Bagchi
• Mr. Shishir Bagchi
• Mr. Arun Bagchi
• Mr. Pranav Batra
• Ms. Arushi Batra
• Mr. Vivek Batra
• Ms. Veena Batra
• Mr. Narendra Kumar Jha
• Mr. Navin Ahuja
• Mr. Sharad Bansal
• Ms. Aparna Ahuja
• Ms. Apoorva Jha Bansal
• Ms. Pushpa Jha
• Ms. Sanjali Jha
• Ms. Swati Jha
• Mr. Vivek Mulye
• Ms. Vriddhi Mulye
• Mr. Vighnesh Mulye
• Dr. Gauresh Palekar
• Ms. Shalaka Gadekar
• Dr. Nivedita Palekar
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
Income from services rendered
Associates/others
Key management personnel
Relatives of key management personnel
Year ended
March 31, 2023
438.0
434.8
3.2
1,422.7
1,419.9
0.9
1.9
` in million
Year ended
March 31, 2022
516.9
510.9
6.0
1,215.7
1,214.0
1.2
0.5
289
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
Particulars
Gain/(loss) on forex and derivative transactions (net)
Associates/others
Income from shared services
Associates/others
Dividend income
Associates/others
Insurance claims received
Associates/others
Interest expense
Associates/others
Key management personnel
Relatives of key management personnel
Expenses for services received
Associates/others
Insurance premium paid
Associates/others
Expenses for shared services and other payments
Associates/others
Insurance claims paid
Associates/others
Key management personnel
CSR related reimbursement of expenses
Associates/others
Donation given
Associates/others
Purchase of investments
Associates/others
Sale of Investments
Associates/others
Investments in the securities issued by related parties
Associates/others
Issuance of securities to related parties
Associates/others
Redemption/buyback of Investments
Associates/others
Purchase of fixed assets
Associates/others
Insurance premium received
Associates/others
Key management personnel
Relatives of key management personnel
290
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
50.8
50.8
326.5
326.5
2,347.1
2,347.1
163.0
163.0
225.7
205.2
15.3
5.2
15,702.6
15,702.6
3,544.6
3,544.6
0.8
0.8
19.0
18.5
0.5
4,441.1
4,441.1
564.5
564.5
1,634.0
1,634.0
31,667.3
31,667.3
1,850.0
1,850.0
1,000.0
1,000.0
1,615.5
1,615.5
3.4
3.4
58.7
55.3
2.6
0.8
36.6
36.6
369.2
369.2
1,993.3
1,993.3
229.6
229.6
199.0
192.2
4.8
2.0
12,297.3
12,297.3
3,222.4
3,222.4
0.8
0.8
42.6
42.1
0.5
2,239.2
2,239.2
486.4
486.4
1,766.5
1,766.5
8,286.9
8,286.9
1,000.0
1,000.0
-
-
-
-
4.8
4.8
75.8
67.1
3.5
5.2
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.) Particulars
Remuneration to wholetime directors2
Key management personnel
Dividend paid
Key management personnel
Relatives of key management personnel
Value of ESOPs exercised
Key management personnel
Sale of fixed assets
Key management personnel
1. 0.0 represents insignificant amount.
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
336.6
336.6
3.9
3.2
0.7
306.2
306.2
0.2
0.2
267.6
267.6
2.5
2.5
0.0
394.2
394.2
-
-
2. Excludes the perquisite value on employee stock options exercised 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
Interest income
1
India Infradebt Limited
Income from services rendered
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
421.2
505.4
1
ICICI Lombard General Insurance Company Limited
1,267.5
1,066.5
Gain/(loss) on forex and derivative transactions (net)
1
ICICI Lombard General Insurance Company Limited
Income from shared services
1
2
ICICI Lombard General Insurance Company Limited
ICICI Foundation for Inclusive Growth
Dividend income
50.8
262.0
37.2
36.6
314.6
38.7
1
ICICI Lombard General Insurance Company Limited
2,240.5
1,886.8
Insurance claims received
1
ICICI Lombard General Insurance Company Limited
Interest expense
1
2
ICICI Lombard General Insurance Company Limited
ICICI Merchant Services Private Limited
Expenses for services received
1
2
I-Process Services (India) Private Limited
ICICI Merchant Services Private Limited
Insurance Premium paid
163.0
140.5
25.9
10,406.6
5,226.6
229.6
163.6
8.3
8,450.4
3,790.0
1
ICICI Lombard General Insurance Company Limited
3,544.6
3,222.4
291
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
Particulars
Expenses for shared services and other payments
1
ICICI Lombard General Insurance Company Limited
Insurance claims paid
1
2
ICICI Lombard General Insurance Company Limited
ICICI Foundation for Inclusive Growth
CSR related reimbursement of expenses
1
ICICI Foundation for Inclusive Growth
Donation given
1
ICICI Foundation for Inclusive Growth
Purchase of investments
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
0.8
16.2
2.3
0.8
42.1
-
4,441.1
2,239.2
564.5
486.4
1
ICICI Lombard General Insurance Company Limited
1,634.0
1,766.5
Sale of Investments
1
2
ICICI Lombard General Insurance Company Limited
India Infradebt Limited
Investments in the securities issued by related parties
1
India Infradebt Limited
Issuance of securities to related parties
1
ICICI Lombard General Insurance Company Limited
Redemption/buyback of investments
1
ICICI Lombard General Insurance Company Limited
Purchase of fixed assets
1
2
Arteria Technologies Private Limited
ICICI Lombard General Insurance Company Limited
Insurance premium received
1
2
ICICI Lombard General Insurance Company Limited
ICICI Foundation for Inclusive Growth
Remuneration to wholetime directors2
1 Mr. Sandeep Bakhshi3
2 Mr. Anup Bagchi
3 Mr. Sandeep Batra3
4 Mr. Rakesh Jha
5 Ms. Vishakha Mulye
Dividend paid
1 Mr. Sandeep Bakhshi
2 Mr. Anup Bagchi
3 Mr. Sandeep Batra
4 Mr. Rakesh Jha
5 Ms. Vishakha Mulye
6 Mr. Shivam Bakhshi
292
24,647.6
7,019.7
6,776.2
1,510.7
1,850.0
1,000.0
1,000.0
1,615.5
3.2
0.1
54.1
0.7
95.7
86.5
85.3
45.9
23.2
1.8
0.0
0.6
0.7
N.A.
0.4
-
-
1.7
3.1
47.9
18.6
73.7
66.3
64.0
N.A.
63.6
0.4
0.1
0.2
N.A.
1.8
0.0
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.) Particulars
Value of ESOPs exercised
1 Mr. Sandeep Bakhshi
2 Mr. Anup Bagchi
3 Mr. Sandeep Batra
4 Ms. Vishakha Mulye
Sale of fixed assets
1 Mr. Rakesh Jha
2 Ms. Vishakha Mulye
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
27.2
183.2
22.0
73.8
0.1
0.1
277.1
56.0
4.8
56.3
-
-
1. 0.0 represents insignificant amount.
2. Excludes the perquisite value on employee stock options exercised and includes performance bonus paid during the period.
3. Includes remuneration received from ICICI Prudential Life Insurance Company Limited relating to the period of his service
with that company.
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
Payables
Associates/others
Key management personnel
Relatives of key management personnel
Investments of the Group
Associates/others
Investments of related parties in the Group
Associates/others
Key management personnel
Relatives of key management personnel
Advances by the Group
Associates/others
Key management personnel
Relatives of key management personnel
Receivables
Associates/others
Guarantees issued by the Group
Associates/others
1. 0.0 represents insignificant amount.
At
March 31, 2023
2,960.0
2,603.0
260.7
96.3
3,718.3
3,716.9
0.4
1.0
24,863.5
24,863.5
1,601.3
1,600.0
1.1
0.2
277.4
191.3
85.7
0.4
1,538.9
1,538.9
63.1
63.1
` in million
At
March 31, 2022
3,591.0
3,424.7
125.1
41.2
3,482.7
3,482.6
0.0
0.1
24,773.8
24,773.8
2,104.6
2,100.0
2.1
2.5
267.1
127.7
139.1
0.3
1,927.9
1,927.9
59.0
59.0
293
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
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 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
` in million
Year ended
March 31, 2023
Year ended
March 31, 2022
420.7
266.6
0.4
1.0
1.9
0.3
139.2
2.3
277.4
176.5
0.1
0.1
3.0
2.5
269.2
1.9
1. Maximum balance is determined based on comparison of the total outstanding balances at each quarter end during the
financial year.
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 10.0% 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. 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 on April 30, 2018 and
option granted in September 2015 which vested to the extent of 50% on April 30, 2018 and balance 50% vested
on April 30, 2019. Options granted in January 2018 vested at the end of four years from the date of grant. Certain
options granted in May 2018, vested to the extent of 50% on May 2021 and balance 50% on May 2022.
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.
294
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
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.
The weighted average fair value, based on Black-Scholes model, of options granted during the year ended March 31,
2023 was ` 291.15 (year ended March 31, 2022: ` 227.75).
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 term
Expected volatility
Expected dividend yield
Year ended
March 31, 2023
5.99% to 7.37%
Year ended
March 31, 2022
5.34% to 6.53%
3.23 to 5.23 years 3.55 to 5.55 years
34.79% to 38.98% 35.38% to 39.41%
0.27% to 0.72%
0.18% to 0.30%
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 behavior 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
Year ended March 31, 2023
Year ended March 31, 2022
Number of
options
Weighted
average
exercise price
(` per share)
Number of
options
Weighted
average
exercise price
(` per share)
Outstanding at the beginning of the year
237,197,999
310.82
246,590,972
Add: Granted during the year
Less: Lapsed during the year, net of re-
issuance
25,793,500
3,921,340
747.92
568.36
25,550,350
2,164,335
Less: Exercised during the year
34,044,356
276.72
32,778,988
Outstanding at the end of the year
Options exercisable
225,025,803
172,938,533
361.60
237,197,999
289.69
177,170,739
276.14
570.43
444.41
243.44
310.82
264.69
295
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
The following table sets forth, the summary of stock options outstanding at March 31, 2023.
Range of exercise
price (` per share)
60-199
200-399
400-599
600-799
800-899
Number of
options
7,202,993
145,129,078
48,347,432
24,274,900
71,400
Weighted average
exercise price
(` per share)
160.84
Weighted average
remaining contractual life
(Number of years)
1.85
267.52
479.32
747.62
862.88
4.37
4.15
6.17
6.58
The following table sets forth, the summary of stock options outstanding at March 31, 2022.
Range of exercise
price (` per share)
60-199
200-399
400-599
600-799
800-899
Number of
options
11,245,113
171,000,375
54,887,211
46,300
19,000
Weighted average
exercise price
(` per share)
160.69
Weighted average
remaining contractual life
(Number of years)
2.52
267.10
477.26
737.63
810.25
5.30
5.11
6.63
6.92
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, 2023 was ` 832.00 (Year ended March 31, 2022:
` 703.14).
ICICI Life:
ICICI Prudential Life Insurance Company has formulated ESOS for their employees. There is no compensation cost
for the year ended March 31, 2023 based on the intrinsic value of options.
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.
Stock options outstanding
` except number of options
Year ended March 31, 2023
Year ended March 31, 2022
Particulars
Number of
options
Weighted
average
exercise price
(` per share)
Outstanding at the beginning of the year
20,184,630
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
5,227,730
199,690
1,270,555
23,942,115
13,559,815
404.87
541.00
461.18
384.94
435.18
395.34
Number of
options
17,175,700
5,061,600
735,800
1,316,870
20,184,630
7,991,235
Weighted
average
exercise price
(` per share)
389.25
453.05
412.86
381.95
404.87
390.40
296
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
The following table sets forth, summary of stock options outstanding of ICICI Prudential Life Insurance Company at
March 31, 2023.
Range of exercise
price (` per share)
Number of options
300-399
400-499
500-599
600-699
8,825,615
9,896,370
5,165,630
54,500
Weighted average
exercise price
(` per share)
379.70
Weighted average
remaining contractual life
(Number of years)
3.20
428.41
541.00
619.43
5.27
6.10
5.06
The following table sets forth, summary of stock options outstanding of ICICI Prudential Life Insurance Company
at March 31, 2022.
Range of exercise
price (` per share)
Number of options
300-399
400-499
600-699
ICICI Securities:
10,048,090
10,076,540
60,000
Weighted average
exercise price
(` per share)
379.99
Weighted average
remaining contractual life
(Number of years)
4.20
428.40
620.05
6.30
6.80
ICICI Securities Limited has formulated ESOS for their employees. There is no compensation cost for the year
ended March 31, 2023 based on the intrinsic value of options.
The following table sets forth, for the periods indicated, a summary of the status of the stock option plan of ICICI
Securities Limited.
Particulars
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
Stock options outstanding
` except number of options
Year ended March 31, 2023
Year ended March 31, 2022
Number of
options
2,939,279
1,657,700
263,980
186,455
4,146,544
1,588,294
Weighted
average
exercise price
(` per share)
342.43
624.68
514.77
305.89
445.94
306.03
Number of
options
2,528,350
953,000
93,000
449,071
2,939,279
2,041,139
Weighted
average
exercise price
(` per share)
295.92
426.91
389.72
250.08
342.43
305.12
297
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
The following table sets forth, summary of stock options outstanding of ICICI Securities Limited at March 31, 2023.
Range of exercise
price (` per share)
Number of options
Weighted average
exercise price
(` per share)
Weighted average
remaining contractual life
(Number of years)
200-249
250-299
350-399
400-449
500-549
600-649
750-799
696,230
37,730
1,127,904
749,880
4,700
1,523,800
6,300
221.45
256.55
361.00
424.60
512.10
625.00
774.60
3.10
2.98
4.13
5.10
6.81
6.05
5.30
The following table sets forth, summary of stock options outstanding of ICICI Securities Limited at March 31, 2022.
Range of exercise
price (` per share)
Number of options
Weighted average
exercise price
(` per share)
Weighted average
remaining contractual life
(Number of years)
200-249
250-299
300-399
400-449
450-499
750-799
4. Fixed assets
790,000
37,730
1,212,149
888,900
4,200
6,300
221.45
256.55
361.00
424.60
468.10
774.60
5.06
4.55
6.10
7.06
6.58
7.30
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
Less: Reduction on account of discontinuation of ICICI Lombard General
Insurance Company Limited from consolidation
Adjusted cost at March 31 of preceding year
Additions during the year
Deductions during the year
Depreciation to date
Net block
` in million
At
March 31, 2023
At
March 31, 2022
33,010.5
35,196.2
-
33,010.5
5,480.1
(2,258.2)
(26,065.1)
10,167.3
(6,470.5)
28,725.7
4,658.3
(373.5)
(24,086.0)
8,924.5
298
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
5. Assets on lease
5.1 Assets taken under operating lease
Operating leases primarily comprise office premises which are renewable at the option of the Group.
(i)
The following table sets forth, for the periods indicated, the details of liability for premises taken on non-
cancellable operating leases.
Particulars
Not later than one year
Later than one year and not later than five years
Later than five years
Total
At
March 31, 2023
924.1
` in million
At
March 31, 2022
681.4
1,443.2
396.2
2,763.5
1,501.9
567.0
2,750.3
The terms of renewal are those normally prevalent in similar agreements and there are no undue restrictions in the
agreements.
(ii)
Total of non-cancellable lease payments recognised in the profit and loss account for the year is ` 1,064.3
million (year ended March 31, 2022 ` 993.4 million).
5.2 Assets taken under finance lease
The following table sets forth, for the periods indicated, the details of assets taken on finance leases.
Particulars
A. Total minimum lease payments outstanding
Not later than one year
Later than one year and not later than five years
Later than five years
Total
B.
Interest cost payable
Not later than one year
Later than one year and not later than five years
Later than five years
Total
C. Present value of minimum lease payments payable (A-B)
Not later than one year
Later than one year and not later than five years
Later than five years
Total
At
March 31, 2023
` in million
At
March 31, 2022
271.3
596.1
14.9
882.3
70.0
83.3
0.5
153.8
201.3
512.8
14.4
728.5
269.2
792.3
76.4
1,137.9
92.5
146.8
3.8
243.1
176.7
645.5
72.6
894.8
299
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
5.3 Assets given 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
-
-
-
Total
Less: collective provision
Total
Not later than one year
Later than one year and not later than five years
Later than five years
Maturity profile of present value of lease rentals
At
March 31, 2023
` in million
At
March 31, 2022
50.2
2.0
52.2
(0.2)
52.0
19.0
33.2
-
52.2
(0.2)
52.0
416.5
13.9
430.4
(0.5)
429.9
237.8
192.6
-
430.4
(0.5)
429.9
The following table sets forth, for the periods indicated, the details of maturity profile of present value of
finance lease receipts.
Particulars
Not later than one year
Later than one year and not later than five years
Later than five years
Maturity profile of future present value of finance lease receipts
-
-
-
Total
Less: collective provision
Total
At
March 31, 2023
` in million
At
March 31, 2022
17.7
32.5
-
50.2
(0.2)
50.0
229.6
186.9
-
416.5
(0.5)
416.0
6. 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
a) Current
b) Deferred
Other provisions and contingencies1,2
Total provisions and contingencies
Year ended
March 31, 2023
13,917.0
(3,653.5)
` in million
Year ended
March 31, 2022
5,412.3
63,775.2
114,564.4
3,370.0
59,135.7
187,333.6
74,044.5
10,529.9
20,579.0
174,340.9
1. Includes contingency provision made amounting to ` 56,500.0 million made by the Bank on a prudent basis (March 31, 2022:
write-back of provision of ` 250.0 million).
2. Includes general provision made towards standard assets, provision on fixed assets acquired under debt-asset swap and non-
fund based facilities.
300
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
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.
During the year, the Directorate General of GST Intelligence (DGGI) initiated an inquiry in to goods and service tax
(GST) credit availed on certain expenses incurred by the ICICI Prudential Life Insurance Company Ltd. (the Company).
During the course of the inquiry, the Company has deposited an amount, without acceptance of liability on account
of denial of credit, with GST authorities. Subsequently, the Company has received an intimation of tax from DGGI.
However, the Company is yet to receive a show cause notice from DGGI providing specific details/reasons for the
intimation. Hence, the Company is currently unable to assess the likelihood of the outcome in the matter as well as
its financial effect.
7. 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
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)
Year ended
March 31, 2023
18,661.0
151.7
1,150.6
758.2
(2,192.6)
(99.8)
18,429.1
19,843.3
1,522.0
(682.0)
(2,436.2)
42.9
(99.8)
18,190.2
18,190.2
(18,429.1)
-
(238.9)
` in million
Year ended
March 31, 2022
20,265.6
204.6
1,145.3
(546.5)
(2,289.8)
(118.2)
18,661.0
21,162.2
1,620.7
(331.9)
(2,544.2)
54.7
(118.2)
19,843.3
19,843.3
(18,661.0)
(401.9)
780.4
301
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
Particulars
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
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, 2023
` in million
Year ended
March 31, 2022
151.7
1,150.6
(1,522.0)
1,440.2
243.6
(401.9)
1,062.2
840.0
1,000.0
41.74%
48.30%
7.08%
2.88%
7.30%
1.50%
8.00%
7.50%
204.6
1,145.3
(1,620.7)
(214.6)
254.4
97.1
(133.9)
1,288.8
2,000.0
46.69%
46.45%
6.46%
0.40%
6.30%
1.50%
7.00%
7.50%
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
Year ended
March 31, 2023
Year ended
March 31, 2022
Year ended
March 31, 2021
Year ended
March 31, 2020
` in million
Year ended
March 31, 2019
18,190.2
19,843.3
21,162.2
16,972.1
15,438.8
(18,429.1)
(18,661.0)
(20,265.6)
(19,914.3)
(16,540.3)
-
(238.9)
(401.9)
780.4
(304.8)
591.8
-
-
(2,942.2)
(1,101.5)
(682.0)
(331.9)
521.9
741.1
(125.9)
805.8
809.0
613.4
2,186.1
1,038.6
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
302
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
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
Less: Adjustment1
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
Less: Adjustment1
Adjusted 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
Amount not recognised as an asset (limit in para 59(b) of AS 15 on
‘employee benefits’)
Asset/(liability)
Cost2
Service cost
Interest cost
Expected return on plan assets
Actuarial (gain)/loss
Past service cost
Exchange fluctuation loss/(gain)
Amount not recognised as an asset (limit in para 59(b) of AS 15 on
‘employee benefits’)
Net cost
Actual return on plan assets
Expected employer’s contribution next year
Year ended
March 31, 2023
16,895.1
12.2
-
16,907.3
1,643.8
1,166.7
1,108.1
(72.2)
21.9
(1,877.8)
18,896.8
16,738.3
-
16,738.3
1,197.7
(577.3)
1,544.4
36.5
(1,877.8)
17,061.6
17,061.6
(18,896.8)
` in million
Year ended
March 31, 2022
16,954.5
6.0
(1,037.6)
15,923.1
1,581.7
1,058.8
(114.1)
-
(0.1)
(1,554.3)
16,895.1
16,541.6
(1,080.6)
15,461.0
1,116.6
(33.1)
1,748.2
(0.1)
(1,554.3)
16,738.3
16,738.3
(16,895.1)
-
(1,835.2)
1,643.8
1,166.7
(1,197.7)
1,685.4
(72.2)
12.2
-
3,238.2
620.4
1,731.0
-
(156.8)
1,581.7
1,058.8
(1,116.6)
(81.0)
-
6.0
-
1,448.9
1,083.4
1,030.0
303
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
Particulars
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, 2023
` in million
Year ended
March 31, 2022
9.97%
30.07%
42.87%
-
15.04%
2.05%
18.88%
23.76%
38.90%
-
16.75%
1.71%
7.30%-7.50%
7.00%-10.00%
7.00%-8.00%
5.80%-7.30%
7.00%-10.00%
7.00%-8.00%
1. Represents reduction on account of discontinuation of ICICI Lombard General Insurance Company Limited from consolidation.
2. 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’)
Year ended
March 31, 2023
Year ended
March 31, 2022
Year ended
March 31, 2021
Year ended
March 31, 2020
` in million
Year ended
March 31, 2019
17,061.6
16,738.3
16,541.6
13,636.8
12,112.4
(18,896.8)
(16,895.1)
(16,954.5)
(15,743.6)
(13,317.1)
-
-
-
-
-
Surplus/(deficit)
(1,835.2)
(156.8)
(412.9)
(2,106.8)
(1,204.7)
Experience adjustment
on plan assets
Experience adjustment
on plan liabilities
(577.3)
(33.1)
892.1
(167.4)
869.4
464.7
(548.2)
253.6
(62.0)
243.7
The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.
Provident Fund (PF)
The Group does not have any liability towards interest rate guarantee on exempt provident fund on the basis of
actuarial valuation at March 31, 2023 (March 31, 2022: 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.
304
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
Particulars
Opening obligations
Less: Adjustments1
Adjusted opening balance
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
Less: Adjustments1
Adjusted opening balance
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
Amount not recognised as an asset (Limit in para 59(b) of AS 15 on
‘employee benefits’)2
Asset/(liability)
Cost3
Service cost
Interest cost
Expected return on plan assets
Actuarial (gain)/loss
Effect of limit in para 59(b)2
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
Year ended
March 31, 2023
49,411.5
(655.3)
48,756.2
2,747.6
3,367.1
1,032.8
4,707.4
805.2
(6,048.6)
55,367.7
50,656.3
(407.5)
50,248.8
4,100.3
(432.8)
2,747.6
4,707.4
805.4
(6,048.6)
56,128.1
56,128.1
(55,367.7)
` in million
Year ended
March 31, 2022
45,617.9
(711.1)
44,906.8
2,202.0
2,947.1
(15.9)
4,049.0
546.1
(5,223.6)
49,411.5
45,615.2
(708.4)
44,906.8
3,761.0
415.0
2,202.0
4,049.0
546.1
(5,223.6)
50,656.3
50,656.3
(49,411.5)
(760.4)
-
2,747.6
3,367.1
(4,100.3)
1,465.6
(732.4)
2,747.6
3,667.5
2,965.9
55.20%
34.83%
0.96%
9.01%
(1,244.8)
-
2,202.0
2,947.1
(3,761.0)
(430.9)
1,244.8
2,202.0
4,176.0
2,357.2
53.56%
35.56%
1.07%
9.81%
7.35%-7.40%
7.97%-8.76%
6.00%-6.85%
7.54%-8.25%
305
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.) Particulars
Discount rate for the remaining term to maturity of investments
Average historic yield on the investment
Guaranteed rate of return
Year ended
March 31, 2023
7.40%-7.60%
8.01%-8.96%
8.15%-8.15%
` in million
Year ended
March 31, 2022
6.75%-7.15%
8.25%-8.87%
8.10%-8.10%
1. a. During the year ended March 31, 2023, ICICI Home Finance Company Limited realised and transferred assets and liabilities
of Employee Provident Fund Trust to Central Provident Fund.
b. During the year ended March 31, 2022, ICICI Venture Funds Management Company Limited realised and transferred assets
and liabilities of Employee Provident Fund Trust to Central Provident Fund.
2. Pursuant to revised Guidance Note 29 on “Valuation of Interest Rate Guarantees on Exempt Provident Funds under AS 15
(Revised)” issued by ‘Institute of Actuaries of India’ on February 16, 2022, plan assets held by PF Trust have been fair valued.
The amount represents the fair value gain on plan assets.
3. Included in line item ‘Payments to and provision for employees’ of Schedule 16- Operating expenses.
Experience adjustment
Particulars
Plan assets
Defined benefit
obligations
Amount not recognised
as an asset (limit in
para 59(b) AS 15 on
‘employee benefits’)1
Surplus/(deficit)
Experience adjustment
on plan assets
Experience adjustment
on plan liabilities
Year ended
March 31, 2023
Year ended
March 31, 2022
Year ended
March 31, 2021
Year ended
March 31, 2020
` in million
Year ended
March 31, 2019
56,128.1
50,656.3
45,615.2
38,682.6
33,282.4
(55,367.7)
(49,411.5)
(45,617.9)
(38,703.4)
(33,282.4)
(760.4)
(1,244.8)
-
-
-
(2.7)
-
(20.8)
-
-
(432.8)
415.1
663.8
(662.0)
13.0
753.2
(684.8)
1,703.3
(129.9)
447.4
1. Pursuant to revised Guidance Note 29 on “Valuation of Interest Rate Guarantees on Exempt Provident Funds under AS 15
(Revised)” issued by ‘Institute of Actuaries of India’ on February 16, 2022, plan assets held by PF Trust have been fair valued.
The amount represents the fair value gain on plan assets.
The Group has contributed ` 4,344.2 million to provident fund including Government of India managed employees
provident fund for the year ended March 31, 2023 (year ended March 31, 2022: ` 4,018.3 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 ` 321.8 million for the year ended March 31, 2023 (year ended March 31, 2022: ` 274.0
million) to Superannuation Fund for employees who had opted for the scheme.
National Pension Scheme (NPS)
The Group has contributed ` 361.1 million for the year ended March 31, 2023 (March 31, 2022: ` 291.8 million) to
NPS for employees who had opted for the scheme.
306
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
Compensated absence
The following table sets forth, for the periods indicated, cost for compensated absence.
Particulars
Total actuarial liability
Cost1
Assumptions
Discount rate
Salary escalation rate
Year ended
March 31, 2023
3,629.6
884.9
` in million
Year ended
March 31, 2022
3,616.9
874.9
7.30%-7.55%
7.00%-10.00%
5.80%-7.30%
7.00%-10.00%
1. Included in line item ‘Payments to and provision for employees’ of Schedule- 16 Operating expenses.
8. Provision for income tax
The provision for income tax (including deferred tax) for the year ended March 31, 2023 amounted to ` 117,934.4
million (year ended March 31, 2022: ` 84,574.4 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.
9. Deferred tax
At March 31, 2023, the Group has recorded net deferred tax asset of ` 76,194.4 million (March 31, 2022: ` 79,484.8
million), which has been included in other assets.
The following table sets forth, for the periods indicated, the break-up of deferred tax assets and liabilities into
major items.
Particulars
Deferred tax assets
Provision for bad and doubtful debts
Provision for operating expenses
Others
Total deferred tax assets
Deferred tax liabilities
Special reserve deduction
Foreign currency translation reserve1
Mark-to-market gains1
Depreciation on fixed assets
Interest on refund of taxes1
Others
Total deferred tax liabilities
Total net deferred tax assets/(liabilities)
At
March 31, 2023
` in million
At
March 31, 2022
104,780.1
4,026.9
11,096.4
119,903.4
37,695.4
615.0
490.0
4,476.7
206.2
225.7
43,709.0
76,194.4
105,637.7
-
11,024.8
116,662.5
31,118.6
1,245.6
278.6
4,093.8
168.4
272.7
37,177.7
79,484.8
1. These items are considered in accordance with the requirements of Income Computation and Disclosure Standards (ICDS).
307
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
10. Information about business and geographical segments
A. Business Segments
Pursuant to the guidelines issued by RBI on AS 17 – Segment Reporting, the following business segments of
the Group have been reported.
i.
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 (BCBS) 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.
ii.
Wholesale banking includes all advances to trusts, partnership firms, companies and statutory bodies, by
the Bank which are not included under Retail banking.
iii. Treasury primarily includes the entire investment and derivative portfolio of the Bank.
iv.
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.
vi.
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.
vii.
Unallocated includes items such as tax paid in advance net of provision, deferred tax and provisions to the
extent reckoned at the entity level.
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.
308
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
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1
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
B. Geographical segments
The Group reports 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 operations1
Foreign operations
Total
Year ended
March 31, 2023
1,819,445.3
52,325.6
1,871,770.9
1. Includes share of profit from associates of ` 9,982.9 million (March 31, 2022: ` 7,544.3 million).
Assets
Domestic operations
Foreign operations
Total
At
March 31, 2023
18,242,212.3
1,246,125.5
19,488,337.8
` in million
Year ended
March 31, 2022
1,550,493.6
32,413.9
1,582,907.5
` in million
At
March 31, 2022
16,060,154.4
1,360,492.8
17,420,647.2
1. 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.
` in million
Capital expenditure
incurred during the
Depreciation
provided during the
Year ended
March 31, 2023
Year ended
March 31, 2022
Year ended
March 31, 2023
Year ended
March 31, 2022
20,914.1
16,765.8
14,867.2
13,012.5
328.2
234.1
278.4
287.6
21,242.3
16,999.9
15,145.6
13,300.1
Domestic operations
Foreign operations
Total
11. Penalties/fines imposed by banking regulatory bodies
There was no penalty imposed by RBI and other overseas banking regulatory bodies during the year ended March 31,
2023 (year ended March 31, 2022: ` 33.0 million).
311
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
12. Additional information to consolidated accounts
Additional information to consolidated accounts at March 31, 2023 (Pursuant to Schedule III of the Companies Act, 2013)
` in million
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 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
Associates
Indian
ICICI Lombard General Insurance Company Limited
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
Foreign
NIL
Joint Ventures
NIL
Inter-company adjustments
TOTAL
Net assets2
Share in profit or loss
% of total
net assets
Amount
% of total
net profit
Amount
93.6% 2,007,153.8
93.7% 318,965.0
0.7%
15,815.5
1.3%
28,219.2
1.1%
22,998.6
0.0%
8.7
0.0%
187.0
2,473.3
0.1%
4.7% 100,915.8
16.9
0.0%
21,478.8
1.0%
0.0%
1.2%
1.2%
0.0%
0.0%
0.0%
577.5
26,158.3
25,256.2
122.0
132.7
364.8
0.4%
3.3%
1.1%
0.0%
(0.0%)
0.0%
2.4%
0.0%
4.4%
0.0%
0.3%
0.8%
0.0%
0.0%
0.0%
1,277.8
11,334.7
3,653.1
0.1
(58.7)
61.9
8,106.6
2.2
15,077.0
28.3
1,045.9
2,818.9
8.9
2.0
58.3
0.0%
119.4
0.0%
3.7
-
(3.1%)
-
(66,867.5)
-
(4.2%)
-
(14,246.7)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.4%
0.0%
0.0%
0.0%
0.5%
0.0%
(0.0%)
0.0%
8,303.1
37.7
3.3
63.0
1,560.2
0.0
(0.2)
15.7
-
-
-
-
(1.8%)
(40,153.1)
100.0% 2,144,977.9
-
-
(5.1%)
(17,755.4)
100.0% 340,366.4
1. 0.0 represents insignificant amount.
2. Total assets minus total liabilities.
312
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
Additional information to consolidated accounts at March 31, 2022 (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 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
Associates
Indian
ICICI Lombard General Insurance Company Limited
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
Foreign
NIL
Joint Ventures
NIL
Inter-company adjustments
Total net assets/net profit
1. 0.0 represents insignificant amount.
2. Total assets minus total liabilities.
Net assets2
Share in profit or loss
% of total
net assets
Amount
% of total
net profit
Amount
` in million
93.7% 1,705,119.7
92.9%
233,394.9
0.9%
1.3%
0.9%
0.0%
0.0%
0.1%
5.0%
0.0%
1.0%
0.0%
1.3%
1.3%
0.0%
0.0%
0.0%
15,897.8
24,087.2
17,038.1
8.6
95.8
2,461.3
91,630.6
17.7
18,599.4
549.2
23,940.8
23,436.9
104.1
130.8
303.8
1.3%
5.6%
0.4%
0.0%
0.0%
0.0%
3.0%
0.0%
5.7%
0.0%
0.3%
0.7%
0.0%
0.0%
0.0%
3,301.6
13,948.1
934.4
0.5
12.8
2.2
7,541.3
3.7
14,363.4
50.7
812.2
1,737.3
0.8
0.3
30.0
0.0%
112.1
0.2%
535.9
-
(3.3%)
-
(59,808.9)
-
(5.7%)
-
(14,281.6)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.4%
0.0%
0.0%
(0.0%)
0.6%
(0.0%)
(0.0%)
0.0%
6,106.5
34.3
2.3
(4.6)
1,396.5
(0.2)
(2.4)
12.0
-
-
-
(2.2%)
-
(43,200.1)
100.0% 1,820,524.9
-
(7.4%)
-
(18,831.9)
100.0% 251,101.0
313
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
13. Revaluation of fixed assets
The Bank and its housing finance subsidiary follows 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 sales comparison method and income generation method and the incremental amount has been taken to
revaluation reserve. The revalued amount at March 31, 2023 was ` 55,500.0 million (March 31, 2022: ` 58,090.8
million) as compared to the historical cost less accumulated depreciation of ` 24,581.6 million (March 31, 2022:
` 25,805.8 million).
The revaluation reserve is not available for distribution of dividend.
14. Proposed dividend on equity shares
The Board of Directors at its meeting held on April 22, 2023 has recommended a dividend of ` 8.00 per equity
share for the year ended March 31, 2023 (year ended March 31, 2022: ` 5.00 per equity share). The declaration and
payment of dividend is subject to requisite approvals.
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 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, 2022 and for the year
ended March 31, 2021.
16. Disclosure on lending and borrowing activities under Rule 11(e) of the Companies (Audit and
Auditors) Rules, 2014
The Bank, as part of its normal banking business, grants loans and advances, makes investment, provides guarantees
to and accept deposits and borrowings from its customers, other entities and persons. These transactions are part
of Bank’s normal banking business, which is conducted ensuring adherence to all regulatory requirements.
Other than the transactions described above, no funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the Bank and other subsidiaries
incorporated in India to or in any other persons or entities, including foreign entities (“Intermediaries”) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified
by or on behalf of the Bank and other subsidiaries incorporated in India (Ultimate Beneficiaries). The Bank and
other subsidiaries incorporated in India have also not received any fund from any parties (Funding Party) with the
understanding that the Bank and other subsidiaries incorporated in India shall whether, directly or indirectly lend or
invest in other persons or entities identified by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
17. Other disclosures
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.
314
Annual Report 2022-23 CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
18. 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 M S K A & Associates
Chartered Accountants
ICAI Firm Registration no.:
105047W
Girish Chandra Chaturvedi
Chairman
DIN-00110996
Uday M. Chitale
Director
DIN-00043268
Sandeep Bakhshi
Managing Director & CEO
DIN-00109206
Tushar Kurani
Partner
Membership no.: 118580
Anup Bagchi
Executive Director
DIN-00105962
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Gautam Shah
Partner
Membership no.: 117348
Mumbai
April 22, 2023
315
Integrated ReportStatutory ReportsFinancial StatementsCONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITEDSCHEDULESforming part of the Consolidated Accounts (Contd.)
STATEMENT PURSUANT TO SECTION 129
OF COMPANIES ACT, 2013
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7
Integrated ReportStatutory ReportsFinancial Statements
BASEL PILLAR 3 DISCLOSURES
at March 31, 2023
Pillar 3 disclosures at March 31, 2023 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, 2023
•
•
•
•
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
318
Annual Report 2022-23
GLOSSARY OF TERMS
Terms
Definition
Average assets
For the purpose of performance analysis, represents averages of daily balances
Average cost of funds
Cost of interest bearing liabilities
Average equity
Average yield
Book value per share
Capital (for CRAR)
Quarterly average of equity share capital and reserves and surplus
Yield on interest earning assets
Share capital plus reserves and surplus 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 to risk weighted assets
ratio (CRAR)
Capital (for CRAR) divided by Risk Weighted Assets (RWAs)
Core operating profit
Profit before provisions and contingencies, excluding treasury income
Cost to income
Operating expenses divided by net interest income and non-interest income
Earnings per share
Net profit after tax divided by weighted average number of equity shares outstanding
during the year
High quality liquid assets
Stock of liquid assets which can be readily sold at little or no loss of value or used as
collateral to obtain funds
Interest spread
Average yield less average cost of funds
Liquidity coverage ratio
Ratio of unencumbered high quality liquid assets to total net cash outflows estimated
for the next 30 calendar days
Net interest income
Total interest earned less total interest expended
Net interest margin
Net worth
Total interest earned less total interest expended divided by average interest earning
assets
Total of equity share capital, employees stock options outstanding and reserves and
surplus
Operating profit
Profit before provisions and contingencies
Provision coverage ratio
Provision for non-performing advances divided by gross non-performing advances
Provisions to core operating profit Provisions and contingencies (excluding taxation) divided by core operating profit
Return on average assets
Net profit after tax divided by average assets
Return on average equity
Net profit after tax divided by average equity
Risk weighted assets (RWAs)
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
319
Integrated ReportStatutory ReportsFinancial Statements REGISTERED OFFICE
CORPORATE OFFICE
ICICI Bank Tower,
Near Chakli Circle, Old Padra Road,
Vadodara 390 007
Tel: +91-265-6722286
CIN: L65190GJ1994PLC021012
STATUTORY AUDITORS
M S K A & Associates
Chartered Accountants
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Mumbai 400 063
REGISTRAR AND TRANSFER AGENTS
Equity Shares:
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Unit : ICICI Bank Limited,
Selenium Building, Tower-B,
Plot No. 31 & 32, Financial District,
Nanakramguda, Serlingampally,
Hyderabad 500 032, Rangareddy, Telangana
ICICI Bank Towers,
Bandra-Kurla Complex,
Mumbai 400 051
Tel: +91-22-40088111
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Chartered Accountants
(formerly Khimji Kunverji & Co LLP)
Sunshine Tower, Level 19,
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Bonds/Debentures:
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International Infotech Park,
Tower # 5, 3rd Floor,
Vashi Railway Station Complex,
Vashi, Navi Mumbai 400 703
OUR APPROACH TO REPORTING
ABOUT THIS REPORT
SAFE HARBOUR
This is ICICI Bank’s Annual Report for the year ended
March 31, 2023. It has been prepared in accordance
with Indian regulatory reporting requirements as
well as 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 its operations,
performance,
financial and non-financial
resources and strategy to create long-term value.
The report provides insights into the Bank’s primary
activities, its strategic priorities, risks and mitigants,
governance structure, and the manner in which it has
leveraged the six capitals, namely Financial, Human,
Intellectual, Manufactured, Social and Relationship,
and Natural.
its
REPORTING BOUNDARY
The non-financial
Integrated
information
Report largely covers data on the India operations of
ICICI Bank Limited and ICICI Foundation for Inclusive
Growth.
in the
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, 2022 to
March 31, 2023.
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 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, and the impact
of the Covid-19 pandemic which could result in
fewer business opportunities, lower revenues, and
an increase in the levels of non-performing assets
and provisions, depending among other factors upon
the period of time for which the pandemic extends,
the remedial measures adopted by governments
and central banks, and the time taken for economic
activity to resume at normal levels after the pandemic,
as well as other risks detailed in the reports filed by
us with the United States Securities and Exchange
Commission. Any
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.
forward-looking
RECOGNISED AS
'COMPANY
OF THE YEAR'
BY
THE ECONOMIC TIMES
'BANK OF
THE YEAR'
BY
BUSINESS TODAY –
KPMG BEST BANKS AWARDS
'BEST COMPANY
TO WORK FOR*'
BY
BUSINESS TODAY
*in the BFSI sector in India
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