ICICI Bank is continually enhancing delivery capabilities to provide
high quality customer experiences. While we continue to invest in value
propositions in line with the evolving customer preferences regarding
products and services, a compelling opportunity emerges to unlock
value through simplified banking. We believe this will significantly
enhance our capability to serve Customer 360° more effectively and
provide a seamless banking experience.
Recognising the imperative of simplifying, the Bank, over the years
through a series of holistic initiatives, has implemented various
measures focussing on decongesting processes, driving digital
transformation and strengthening delivery channels to build a seamless
and sustainable delivery framework. Continuing on this journey,
the Bank is implementing these holistic initiatives across its entire
organisational spectrum covering technology, operations, policies,
organisation structure, franchise network and distribution channels.
Process decongestion in our delivery framework is
an ongoing effort with the objective of eliminating
complexity, streamlining operations and building
efficiencies to enhance customer satisfaction and
strengthen operational resilience.
The Bank is strategically focussed on identifying and
addressing complexity in customer journeys such as
simplifying onboarding processes, designing quick and
easy transaction processing and providing seamless
and secure digital services. The Bank has upgraded
to a single enterprise-level customer relationship
management platform with enhanced capabilities for
servicing all the banking needs of the customers. A
common onboarding framework has been created for
both asset and liability products related to know your
customer. The OpsServe initiative enables the Bank to
consolidate operational activities at business centres
and thereby releases capacity for better customer
engagement. VServ enables the business centres
and micro market teams to seek solutions to diverse
customer requirements by reaching out to a central
pool of internal subject matter experts.
ICICI Bank’s digital transformation journey is centred
around integrating technologies and digital platforms
to deliver seamless, simple and secure experiences,
enabling customers to navigate and avail banking
services with ease and convenience. The Bank’s efforts
continue to be guided by the three pillars of scalability,
resilience and security across technology solutions.
As the Bank progressed on digital journey, various
digital innovations were launched over the years for
seamless access to banking services such as customer-
friendly payment and collection solutions, ‘Do-it-
yourself’ transactions journeys and bespoke solutions.
The Bank leverages public data infrastructure, digital
integrations and data analytics, as the foundation for
informed decision-making which have led to paperless
and end-to-end digital journeys across several products
Decongesting Processes
Digital Transformation
Process decongestion initiatives have improved our
response and turnaround time thereby empowering
our teams to effectively serve a diverse and vast base
of identified customers in a simplified manner.
CONTENTS
Bank at a Glance
02
Financial Highlights
04
Message from the Chairman
06
Corporate Information
08
Message from the Wholetime Directors
09
Business Model
10
Our Business Strategy
14
Our Values
30
Fair to Customer, Fair to Bank
32
Risk Governance Framework
36
Responding to Risks and Opportunities
42
Materiality Assessment
44
Human Capital
52
Social and Relationship Capital
60
Environment and Sustainability
66
Board’s Report
71
Auditors’ Certificate on Corporate
Governance
122
Management Discussion & Analysis
123
Key Financial Indicators: Last 10 Years
143
INTEGRATED REPORT
STATUTORY REPORTS
Independent Auditors’ Report –
Financial Statements
144
Financial Statements of
ICICI Bank Limited
154
Independent Auditors’ Report –
Consolidated Financial Statements
249
Consolidated Financial Statements of
ICICI Bank Limited and its Subsidiaries
268
Statement Pursuant to Section 129
of Companies Act, 2013
332
Basel Pillar 3 Disclosures
334
Glossary of Terms
335
FINANCIAL STATEMENTS
To view this report online, please visit:
https://www.icicibank.com/aboutus/annual.page
The Bank has realigned its organisation structure to create
and support an effective distribution network across
micromarkets and ecosystems for seamless delivery of
products and services to its growing customer base in a
simplified manner.
Business centre coverage has been optimised in key
micromarkets for better customer reach for sales and
service. Product-centric teams have been re-aligned
to geographically cohesive customer-centric teams for
greater synergy and for meeting the diverse banking
needs of the customer. We have further empowered our
on-ground teams by adding leadership personnel closer to
the customer for faster decision-making to impart superior
customer experience. With the aim to take the entire bank
to the customer and serve the entire value chain, customer
ecosystem propositions were launched and supported
by industry-specific STACKS as well as digital platforms,
which provide bespoke solutions to meet specific needs of
the entire ecosystems.
The realignment of delivery channels has redefined
customer engagement opportunities in a meaningful and
simplified manner at various customer touchpoints and to
bring the delivery closer to the customer.
The principles of ‘Fair to Customer, Fair to Bank’, ‘One Bank,
One Team’ and ‘Return of Capital’ will continue to guide
our operations. The Bank continues to lay strong emphasis
on serving customers with simplicity, transparency and
offering suitable banking solutions to build trust for
long-term sustainable growth.
Delivery Channels
with comprehensive value propositions for customers.
Pre-approved offers across product segments leverage
the digital capabilities for delivering right-sized offerings in
an easy and seamless manner.
The digital transformation has consolidated the customer
journeys in a simplified manner thereby providing customer-
friendly and personalised experiences.
BANK AT A GLANCE
*During fiscal 2024; others at March 31, 2024
`408.88 billion
Profit After Tax*
`544.79 billion
Profit Before Tax Excluding Treasury*
`442.56 billion
Consolidated Profit After Tax*
4.53%
Net Interest Margin*
`18,715.15 billion
Standalone Total Assets
`14,128.25 billion
Total Deposits
`18,715.15 billion
Standalone Total Assets
`11,844.06 billion
Total Advances
16.33%
Capital Adequacy Ratio
02 | Annual Report 2023-24
Presence across the country
The Bank has a network of 6,523 business
centres, 17,190 ATMs and Cash Recycling
Machines, and 570 Insta Banking Kiosks
across the country.
iLens platform for mortgages,
enhanced to personal loan and
education loan
iLens, ICICI Bank’s lending solution, is an
industry-first end-to-end digital lending
platform covering the entire loan life cycle. It
is a single interface that allows employees,
third party agencies and sourcing channels
to collaborate to facilitate faster turnaround
of loan applications, greater transparency
of loan status and an enriched customer
experience. In addition to mortgages, the
platform is now extended to personal and
education loan offerings.
More than 30 million users on
iMobile Pay
iMobile Pay, ICICI Bank’s mobile banking
application, has more than 30 million users.
The total value of transactions done through
this app stood at close to `11,000 billion in
fiscal 2024.
Over 4,600 APIs
The Bank has over 4,600 APIs to manage
more
than
160
million
financial
and
non-financial transactions per day.
35% of total energy consumed
is from renewable sources
The share of renewable energy in total
energy consumption from grid and on-site
solar increased to 35% in fiscal 2024 as
compared to 9% in the previous year.
Over 70% digital trade
transactions
Of all the eligible trade transactions
processed through the Bank, over 70%
were done digitally.
`12 billion committed to Tata
Memorial Centre
ICICI Bank has committed a contribution
of `12 billion to Tata Memorial Centre.
The money will be utilised for setting up
cancer care facilities in Maharashtra, Punjab
and Andhra Pradesh.
34% y-o-y increase in UPI
P2M transaction
The volume and value of UPI person-to-
merchant (P2M) transactions increased by
34.4% and 76.4% respectively year-on-year
in fiscal 2024.
16 million cards in force
Over 16 million credit cards in force as at
March 31, 2024. Overall credit card spends
grew by 28% year-on-year in fiscal 2024.
22% growth in volume of
transactions on InstaBIZ
The volume of financial transactions on
InstaBIZ, the Bank’s one-stop solution for
all banking needs of business banking
customers, grew by 22% in fiscal 2024.
Annual Report 2023-24 | 03
TOTAL ADVANCES
March
2020
March
2021
March
2022
March
2023
March
2024
7,709.69
9,325.22
10,645.72
14,128.25
11,808.41
1,022.27
4,231.51
2,455.91
1,361.70
5,008.99
2,954.53
1,584.80
5,461.35
3,599.57
TOTAL DEPOSITS
Current Account (` in billion)
Savings Account (` in billion)
Term Deposit (` in billion)
Total (` in billion)
March
2020
March
2021
March
2022
March
2023
March
2024
6,452.90
11,844.06
10,196.38
8,590.20
7,337.29
8.4%
2.8%
3.3%
4.8%
5.1%
28.4%
24.4%
26.3%
27.2%
28.2%
7.9%
7.1%
5.1%
50.3%
56.3%
54.7%
52.9%
51.8%
8.8%
4.1%
8.6%
8.6%
8.9%
6.2%
9.8%
Retail
Business Banking
Domestic Corporate & SME
Overseas
Rural Loans
Total (` in billion)
4,023.00
3,797.76
8,169.53
6,395.79
1,935.72
1,614.86
March
2020
March
2021
March
2022
March
2023
March
2024
NET WORTH
1,165.04
1,475.09
1,705.12
2,007.16
2,383.99
Net Worth (Equity Share Capital, Employees Stock Options
Outstanding, Reserves and Surplus) (` in billion)
15.60%
18.35%
18.06%
14.72%
0.73%
1.39%
16.11%
1.06%
19.12%
0.81%
19.16%
18.34%
16.33%
March
2020
March
2021
March
2022
March
2023
March
2024
CAPITAL ADEQUACY
17.60%
13.39%
16.80%
17.60%
17.12%
15.60%
Tier I
Tier II
Common Equity Tier 1
Total
FINANCIAL HIGHLIGHTS
0.74%
04 | Annual Report 2023-24
79.31
127.55
161.93
151.37
233.39
297.06
318.96
424.73
408.88
544.79
March
2020
FY2020
March
2021
FY2021
March
2022
FY2022
March
2023
FY2023
March
2024
FY2024
332.67
75.7%
389.89
77.7%
474.66
79.2%
621.29
82.8%
743.06
80.3%
3.73%
3.69%
3.96%
4.48%
4.53%
Provision Coverage Ratio (provisions on gross NPAs as a percentage of
gross NPAs)
FY2020
FY2020
FY2021
FY2021
FY2022
FY2022
FY2023
FY2023
FY2024
FY2024
Standalone Net Profit (` in billion)
Net Interest Income (NII) (` in billion)
Net Interest Margin (NIM)
Profit Before Tax (Excluding Treasury Income) (` in billion)
1.4%
1.1%
0.8%
0.5%
0.4%
Net NPA Ratio (based on customer assets)
STANDALONE NET PROFIT
PROVISION COVERAGE RATIO
& NET NPA RATIO
NII & NIM
PROFIT BEFORE TAX
(EXCLUDING TREASURY INCOME)
FINANCIAL HIGHLIGHTS
Annual Report 2023-24 | 05
Integrated Report
Statutory Reports
Financial Statements
The Indian economy continued to display resilience
and growth in the year gone by. Industrial and services
sector activity was strong on the back of domestic
demand. Substantial public investment in infrastructure
provided an impetus to growth. At the same time, the
fiscal position continued to benefit from robust tax
collections. The banking system has become significantly
stronger in recent years and is well-placed to support the
country’s growth. The regulatory framework continued
to evolve with a focus on high standards of compliance,
operational resilience and a proactive approach towards
addressing potential risks.
During fiscal 2024, the Bank continued to focus on
growth in risk-calibrated profits, pursuing opportunities
across business segments and geographies, within
the guardrails of risk and compliance. The growth in
business was broad-based underpinned by the Bank’s
focus on micromarkets and ecosystems. The Bank
continued to enhance its liability franchise and focus on
optimal asset-liability management. Enhancement of
delivery systems, with emphasis on resilience, efficiency
and customer experience, continue to be focus areas
for the Bank. The Bank’s asset quality is healthy and
capital levels are well above regulatory requirements.
The strong balance sheet, well-recognised brand and
extensive franchise provide the foundation for the Bank’s
growth in the coming years.
The Bank is taking several initiatives towards
simplifying the banking experience for its customers.
The Bank has adopted a customer-centric approach,
with the prime objective of serving all their banking
needs in a holistic manner. The principle of ‘Fair to
Customer, Fair to Bank’ underpins our strategy, aiming
to build trust with our customers for long-term value
creation and thereby growing the Bank’s share of the
business opportunity. Integrity, transparency and
fairness continue to be core to serving our customers
and each employee is expected to uphold these values
while representing the organisation.
Girish Chandra Chaturvedi
Chairman
During fiscal 2024, the Bank
continued to focus on
growth in risk-calibrated
profits, pursuing
opportunities across
business segments and
geographies, within the
guardrails of risk and
compliance. The growth in
business was broad-based
underpinned by the Bank’s
focus on micromarkets and
ecosystems.
MESSAGE FROM THE CHAIRMAN
06 | Annual Report 2023-24
The rapid increase in adoption of digital modes of
banking in recent years has significantly increased the
requirements on operational resilience and effective
management of the risks associated with technology
in banking. The Bank continues to strengthen the
technology infrastructure based on the key pillars of
scalability, resilience and security. Information security
is of paramount importance and is considered to be
an integral part of our technology implementation.
The Bank has taken a range of initiatives towards
revamping digital platforms and enhancing its core
applications to cater to higher business volumes.
The Bank has laid strong emphasis on continuous
strengthening of operational resilience for seamless
delivery of services and customer delight.
During fiscal 2024, the Bank continued to make
progress on its sustainability journey. The achievements
in fiscal 2024 strengthened the Bank’s commitment to
environmental, social and governance (ESG) aspects
of its business. The Bank achieved an increase in the
proportion of renewable sources in its total energy
consumption, resulting in a decline in Scope 2 emissions.
The Bank has now set a target of becoming carbon neutral
in Scope 1 and Scope 2 emissions by fiscal 2032. The
Bank also continued to work towards integrating climate
change related risks in its risk management. Building
an understanding of sustainability and ESG among the
employees is a key area of focus, with a view to embedding
ESG in all relevant areas of the Bank’s operations.
The Bank has devoted significant resources to Corporate
Social Responsibility (CSR) activities. The CSR initiatives
span the thematic areas of healthcare, environment,
supporting livelihood and community development. These
include both large-scale projects as well as granular
initiatives under the thematic areas spread across the
country. Sustainability and scalability of projects are key
pillars. The Bank estimates that its CSR initiatives have
benefited over 12 million people thus far.
The Board is committed to maintaining the highest
standard of corporate governance and will continue
to review and strengthen these practices. The Board
continuously endeavours to strengthen various policies
and frameworks, and maintain oversight over risk
management, audit and compliance with the laws of
the land through its various Committees. The Board has
laid strong emphasis on building an effective risk and
compliance culture in the Bank. Ensuring organisational
resilience and responsiveness to the evolving
technological developments and cybersecurity are key
focus areas. The Board will continue to maintain integrity,
fairness and transparency in our engagement with all
our stakeholders.
Looking ahead, while global geopolitical and economic
conditions continue to remain uncertain, the prospects
for the Indian economy are strong. The country’s
world-leading public digital infrastructure, its vast
human capital, strong base of entrepreneurship, the
manufacturing opportunity, infrastructure and industrial
investment potential and the robust regulatory
framework can support healthy growth for several years.
The Bank is well-poised to focus on profitable business
opportunities with a focus on operational resilience
and balancing risks and rewards. We would like to
thank all our stakeholders and look forward to your
continued support.
As I demit office as the Chairman of the Board,
I would like to thank my colleagues on the Board,
the management team and all stakeholders for their
support. The progress that the Bank has made on
various fronts, strengthening its franchise and its
balance sheet, is commendable. I am sure the Bank
will build on this foundation to create sustainable value
for its stakeholders. I take this opportunity to welcome
Mr. P. K. Sinha as the new Chairman of the Board and
wish him, the Board and the Bank all the very best in the
years to come.
With best wishes,
Girish Chandra Chaturvedi
Chairman
June 30, 2024
MESSAGE FROM THE CHAIRMAN
Annual Report 2023-24 | 07
Integrated Report
Statutory Reports
Financial Statements
CORPORATE INFORMATION
BOARD MEMBERS
Pradeep Kumar Sinha
Non-Executive (part-time)
Chairman**
Sandeep Bakhshi
Managing Director & CEO
Hari L. Mundra
Independent Director
B. Sriram
Independent Director
S. Madhavan
Independent Director
Uday Chitale
Independent Director
Neelam Dhawan
Independent Director
Rakesh Jha
Executive Director
Sandeep Batra
Executive Director
Ajay Kumar Gupta
Executive Director
Vibha Paul Rishi
Independent Director
KEY PERSONNEL
Anindya Banerjee
Group Chief Financial
Officer
Prachiti Lalingkar
Company Secretary
BOARD COMMITTEES
Audit Committee
Uday Chitale (C)
S. Madhavan
Radhakrishnan Nair
Rohit Bhasin
Board Governance,
Remuneration &
Nomination Committee
Neelam Dhawan (C)
Pradeep Kumar Sinha
B. Sriram
Corporate Social
Responsibility Committee
Pradeep Kumar Sinha (C)
Radhakrishnan Nair
Uday Chitale
Vibha Paul Rishi
Rakesh Jha
Credit Committee
Sandeep Bakhshi (C)
Hari L. Mundra
B. Sriram
Rakesh Jha
Customer Service
Committee
Vibha Paul Rishi (C)
Hari L. Mundra
Sandeep Bakhshi
Rakesh Jha
Fraud Monitoring
Committee
Radhakrishnan Nair (C)
S. Madhavan
Neelam Dhawan
Sandeep Bakhshi
Rakesh Jha
Information Technology
Strategy Committee
B. Sriram (C)
Neelam Dhawan
Sandeep Batra
Ajay Kumar Gupta
Risk Committee
S. Madhavan (C)
Pradeep Kumar Sinha
Vibha Paul Rishi
Rohit Bhasin
Sandeep Batra
Stakeholders Relationship
Committee
Hari L. Mundra (C)
Uday Chitale
Sandeep Batra
Radhakrishnan Nair
Independent Director
Girish Chandra Chaturvedi
Non-Executive (part-time)
Chairman*
Rohit Bhasin
Independent Director***
As on July 27, 2024
* Up to June 30, 2024
** With effect from July 1, 2024
*** With effect from July 26, 2024
(C) Chairperson
08 | Annual Report 2023-24
MESSAGE FROM THE WHOLETIME
DIRECTORS
At ICICI Bank, our focus remains on risk-calibrated profitable growth by maintaining high
standards of governance, deepening our coverage and enhancing our delivery capabilities.
Furthermore, we continue to cultivate a culture where every employee serves customers
with humility and upholds the values of brand ICICI. We aim to be a trusted financial
services provider of choice for our customers and deliver consistent, predictable returns
to our shareholders.
In fiscal 2024, we remained committed to integrating sustainable practices into the Bank’s
operations. Encouraged by our steady progress, we have set a target of becoming carbon
neutral in Scope 1 and Scope 2 emissions by fiscal 2032. Our efforts through ICICI Foundation
for Inclusive Growth, our CSR arm, in providing affordable healthcare, creating rural livelihoods,
and supporting societal development have made a difference to over 12.8 million lives across
the country to date.
Sandeep Batra
Executive Director
Sandeep Bakhshi
Managing Director & CEO
Our priority is to simplify banking for our customers and deliver superior experience across
all ecosystems, micromarkets and customer segments. Our 360º customer-centric service
approach is anchored on core values of trust, integrity and transparency. We are making
continuous efforts to strengthen our service digital capabilities and enhance our delivery
systems underpinned by a focus on operational resilience. The Bank is committed to
fostering a strong risk and compliance culture to ensure a balance of risk and rewards for
delivering long-term sustainable outcomes.
We see exciting opportunities arising from the Indian economy and its global linkages
and are committed to supporting this transformative journey. Driven by the principles of
‘One Bank, One Team’ along with ‘Fair to Customer, Fair to Bank’ and ‘Return of Capital’,
our focus will be growing in a prudent and responsible manner. We remain committed to
high standards of governance, and becoming a trusted financial partner for our customers
while creating value for all stakeholders.
We continue to strengthen our 360° customer-centric approach as ‘One Bank, One Team’,
aiming to deliver value to our customers in line with our ‘Fair to Customer, Fair to Bank’
approach. Building trust-based long-term relationships with customers is core to our strategy
for sustainable growth.
In fiscal 2024, we focussed on deepening our presence and harnessing business opportunities
across ecosystems and micromarkets in a unified manner by leveraging our business
centres, digital channels and partnerships. We have further empowered our frontline teams
with enablers for enhancing customer engagement and providing seamless services. We
continued to enhance our services and solutions such as onboarding new products on
our iLens platform, enriching the export-import journey on Trade Online and technology
integrations with customers to serve supply chain ecosystems. We believe our initiatives
should be underpinned by simplicity and should enrich the customer experience.
Rakesh Jha
Executive Director
Offering high-quality banking services with simplicity and reliability is our key priority as we
seek to deliver customer delight while ensuring resiliency of our operations. We continue
to focus on enhancing delivery systems and simplifying processes for better outcomes.
The Bank’s delivery framework endeavours to take complete ownership of the customer’s
needs, right from onboarding to fulfilling various transaction needs, through a frictionless
journey. We continued our approach of onboarding right counterparties including our
partners and service providers. We continue to review our credit policies and credit delivery
for offering right product propositions to our customers and deliver in a seamless manner.
By leveraging data analytics, public digital infrastructure and digital capabilities, we strive
to provide customers with a transparent and best-in-class banking experience.
We have laid strong emphasis on continuously strengthening our operational resilience for
seamless delivery of services to customers. As we continue to grow our business, we remain
invested towards strengthening our delivery systems and technology platforms to sustain
scalability, security and resilience.
Ajay Kumar Gupta
Executive Director
Annual Report 2023-24 | 09
Integrated Report
Statutory Reports
Financial Statements
BUSINESS MODEL
CAPITALS
VISION
To be the trusted financial services provider of choice for our customers,
thereby creating sustainable value for our stakeholders.
FINANCIAL CAPITAL
HUMAN CAPITAL
INTELLECTUAL CAPITAL
MANUFACTURED CAPITAL
SOCIAL AND RELATIONSHIP CAPITAL
NATURAL CAPITAL
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 123
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 19
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 60
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
10 | Annual Report 2023-24
Co
mp
lia
nc
e
wit
h
Co
ns
cie
nc
e
Ret
urn
of
Ca
pit
al
On
e
Ba
nk,
O
ne
Te
am
Fai
r to
C
us
to
me
r,
Fai
r t
o B
an
k
Agi
le
Ris
k
Ma
na
ge
me
nt
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
Co
mp
lia
nc
e
Re
pu
ta
tio
n
Le
ga
l
Cy
be
r
In
fo
rm
ati
on
Op
er
ati
on
al
Liq
ui
dit
y
Ma
rk
et
Cr
ed
it
Te
ch
no
lo
gy
Provide credit
to support
consumption
and economic
activity
Enable
financial inclusion
Facilitate
payments and
transactions
Enable wealth
creation and
management
Provide
savings
products
Ri
sk
a
nd
Co
m
pli
an
ce
C
ul
tu
re
Pr
oc
es
s
De
co
ng
es
tio
n
Le
ve
ra
gin
g
Te
ch
no
lo
gy
Cr
os
s-
fu
nc
tio
na
l
Pa
rt
ne
rs
hi
ps
Co
lla
bo
ra
ti
on
Ec
os
ys
te
ms
Mi
cr
o
ma
rk
et
s
Cu
st
om
er
-C
en
tri
cit
y
Annual Report 2023-24 | 11
Integrated Report
Statutory Reports
Financial Statements
BUSINESS MODEL
FINANCIAL
CAPITAL
HUMAN
CAPITAL
INTELLECTUAL
CAPITAL
MANUFACTURED
CAPITAL
SOCIAL AND
RELATIONSHIP CAPITAL
NATURAL
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’
• 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
• 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
• Focus on cybersecurity, data privacy and operational resiliency
• Core and supporting IT systems that are responsive and scalable
• Engagement with customers, society and other stakeholders
• Participating in development efforts through the
ICICI Foundation for Inclusive Growth
• Empowering rural women entrepreneurs
• Financial inclusion
• 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 2023-24
BUSINESS MODEL
OUTPUTS
OUTCOMES
Profit After Tax:
`408.88
billion
in fiscal 2024
Profit Before Tax
Excluding Treasury:
`544.79
billion
in fiscal 2024
Loans and Advances:
`11,844.06
billion
at March 31, 2024
Deposits:
`14,128.25
billion
at March 31, 2024
FINANCIAL CAPITAL
• Profit before tax excluding treasury grew by 28.3% and profit after tax by 28.2% on
y-o-y basis
• Granular portfolio mix with 67.7% of corporate loans to entities internally rated A and above
• Net NPA ratio decreased from 0.48% at March 31, 2023 to 0.42% at March 31, 2024
• Common Equity Tier 1 ratio of 15.60% at March 31, 2024
• Consolidated return on equity of 18.9% in fiscal 2024
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, 2024
• Average person learning days of 12 days in fiscal 2024
• Diversity, equity and inclusion policy and human rights policy established to promote a culture
of no discrimination
• Strong industry-academia engagement to create bankers with diverse skills
INTELLECTUAL CAPITAL
• iLens platform for mortgages, enhanced to personal loan and education loan offerings
during fiscal 2024
• Value proposition launched for cross-border trade solutions in fiscal 2024; over 20
industry-specific STACKS developed providing bespoke solutions to customers
• Around five million Amazon Pay credit cards issued till March 31, 2024
• More than 4,600 APIs of which 2,600 APIs for retail banking and 200 APIs for corporate
banking; over 160 million financial and non-financial transactions per day
MANUFACTURED CAPITAL
• Several initiatives taken towards enhancing delivery systems and simplifying processes with
a focus on delivering customer delight
• Empowered business centres for enabling Customer 360º
• 623 business centres added during the year
• 13 exclusive business centres for ecosystem banking across Mumbai, National Capital Region
(NCR) and Kolkata
• No material incidents of security breaches or data loss during fiscal 2024
SOCIAL AND RELATIONSHIP CAPITAL
• The ‘Orange Book’ continuously educates customers about various topics such as power of
compounding, tax saving, will writing, succession planning and emerging frauds
• Improvement in the Bank’s Net Promoter Score continued across products and services
• `5.19 billion spent towards corporate social responsibility initiatives; focussed on healthcare,
environment and ecology, sustainable livelihood and societal development; 12.8 million
beneficiaries through CSR initiatives till date
• Commitment of `12.00 billion to Tata Memorial Centre for expanding cancer care facilities
at three locations
• Continuing support to self-help groups and promoting women entrepreneurship
• ISO 45001:2018 certification for Occupational Health and Safety Management at
18 large offices with total occupancy of more than 30,000 employees
NATURAL CAPITAL
• Outstanding portfolio of `685.28 billion towards sustainable sector, of which 28.3% was
green financing to sectors like renewable energy, electric vehicles, green buildings and water
and waste management at March 31, 2024
• 32% of Bank’s premises were Indian Green Building Council certified at March 31, 2024
• Proportion of renewable energy in total energy consumption from the grid and on-site solar
increased to 35% in fiscal 2024 from 9% in fiscal 2023
Annual Report 2023-24 | 13
Integrated Report
Statutory Reports
Financial Statements
14 | Annual Report 2023-24
OUR BUSINESS STRATEGY
Strengthening our operational resilience and enhancing delivery
systems to achieve sustainable growth.
During fiscal 2024, the Bank continued to advance in
terms of profitability, its franchise as well as building
capabilities for sustainable and resilient growth. On
the back of core principles of ‘Return of Capital’, ‘Fair
to Customer, Fair to Bank’ and ‘One Bank, One Team’,
the Bank has sought to maintain a strong culture while
pursuing its business objectives. Emphasis was laid on
deepening coverage and enhancing delivery capabilities
while continuing the focus on appropriate risk and
reward. The Bank’s strategic objective of risk-calibrated
growth in profit before tax excluding treasury continued
to drive businesses, anchored by a 360º customer-centric
approach and exploring opportunities across ecosystems
and
micromarkets.
The
Bank’s
profit
before
tax
excluding treasury grew by 28.3% year-on-year during
fiscal 2024 to `544.79 billion. The Bank saw broad-
based loan growth across segments with a growth of
16.8% year-on-year in the domestic loan portfolio to
`11,509.55 billion. The Bank continued to maintain
its competitive advantage in cost of funds while
enhancing the liability franchise and maintaining a
stable and healthy funding profile. During fiscal 2024,
the Bank continued to maintain a strong balance sheet
with adequate liquidity, prudent provisioning and
healthy capital adequacy.
Building trust with all stakeholders is critical to the Bank’s
strategic objectives. The Bank re-iterates its focus on
a strong risk and compliance culture that underpins
dealings with our customers. We believe in serving
our customers with integrity and transparency while
offering suitable banking solutions. At the same time, the
approach of right counterparty selection has provided
an impetus to resilient growth in business. Remaining
agile and aligning the organisation structure to evolving
opportunities has helped in better serving our customers
and
exploring
the
potential
across
micromarkets
and ecosystems.
The Bank has laid strong emphasis on continuously
strengthening its operational resilience for seamless
delivery of services to customers. It is also evolving in
line with the growing and emerging requirements of
our customers. We continue to focus on simplifying
banking services to deliver an improved customer
experience and enhance advocacy. As we continue to
enhance our digital capabilities, which are integral to our
operations, we remain invested towards strengthening
our
delivery
systems,
technology
platforms
and
cybersecurity to sustain scalability and resilience.
360
o
Customer-
centric
Approach
Focus on
Micromarkets
Fair to Customer, Fair to Bank
Return of Capital
One Bank, One Team
Focus on
Ecosystems
Collaboration
and External
Partnerships
Bank to
BankTech
Leveraging
Technology
and Digital
Process
Decongestion
and
Operational
Flexibility
Risk and
Compliance
Culture
Maximising Profit Before Tax1
1 Excluding treasury
Our efforts continue to be guided by our seven
strategic value drivers and three key principles
Annual Report 2023-24 | 15
Integrated Report
Statutory Reports
Financial Statements
OUR BUSINESS STRATEGY
Taking Entire Bank to the Customer
Customer Expectations
Approach
Execution
Trust &
Partnership
Reputed Brand &
Quality Service
Customer
Convenience
Customer
Delight
Right
Counterparties
Customer
360°
Simplify
I. APPROACH TO CUSTOMERS
a. Focus on Customer 360º
Customer-centricity is core to our strategy in growing
our business and delivering customer delight. We
have sought to adopt a solution-oriented approach in
meeting financial needs of a customer and designing
solutions that are product and segment agnostic. We
seek to take the entire bank to the customer and offer
solutions that are holistic in nature and build trust that
translates into a long-term relationship with our customers.
Delivering
on
the
Customer
360º
approach
also
requires enhancing delivery systems and simplifying
processes for better outcomes. The Bank is continuously
making efforts to streamline processes and leverage
technology-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 continues to strengthen its franchise
in terms of enabling constructive customer engagement,
decision-making and accountability. This has led to
transformation
of
branches
into
customer-oriented
business centres.
The Bank's objective is to serve the entire value chain
of corporate clients including their channel partners,
dealers, vendors, employees and other stakeholders,
by taking the full bank to the customer. The Bank’s
commitment is to deliver holistic solutions and provide
seamless digital customer journeys.
b. Focus on Micromarkets
ICICI Bank continues to uphold its customer-centric
ethos through an in-depth analysis of micromarkets,
leveraging data analytics and market intelligence. This
comprehensive understanding enables the Bank to
deliver tailored solutions to customers across various
segments,
empowering
frontline
teams
to
devise
localised
strategies
with
tailored
propositions.
Micromarket insights allow the Bank to focus on
aligned distribution and relevant delivery models.
These insights are utilised in optimising business centre
locations, ATM placements and build distribution networks
to better align with customer needs and market dynamics
thereby driving value creation through appropriate
planning, resource allocation, channel alignment and
marketing in every market the Bank serves.
Business
Centres
Micromarket &
Ecosystem
Digital
Solutions
16 | Annual Report 2023-24
Micromarket
6,523
Business Centres
17,190
ATMs/Cash Recycling Machines
570
Insta Banking Kiosks
ICICI Bank’s Network at March 31, 2024:
OUR BUSINESS STRATEGY
Focus on High
Potential Markets
Intensified
Leadership Presence
Asset Distribution
Aligned with
Business Centres
Credit Business
Centres Co-located in
Business Centres
The localised branding, resourcing, capacity building and
service offerings further enhance customer engagement
and satisfaction, while focussed marketing campaigns
cater to specific segments, complemented by alliances
with relevant partners in each micromarket. Moreover,
our commitment to innovation is exemplified through
the implementation of Virtual Relationship Management
(VRM), an AI-powered platform facilitating efficient
and personalised customer interactions with the help
of service and solution-based engagement. This cloud-
based platform empowers our relationship managers
to deliver meaningful solutions and services, thereby
enriching customer experiences and helping to build
robust relationships.
We have strategic digital tie-ups to empower our
frontline teams with detailed local insights and structured
catchment texture. Available at individual business
centre level, the insights allow the teams to focus on
the requirements of the catchment, develop localised
strategies, allocate resources and provide customers
with a personalised experience and relevant solutions.
The Bank continues to strengthen the organisational
structure with ‘State Business Heads’ to capture the 360°
opportunity in these geographies and ‘City Business
Heads’ covering the full spectrum of the ecosystem in
cities with large concentrated market opportunities.
Credit Business Centres (CBC) continue to be placed
closer to important markets to facilitate faster processing
and delivery.
The combination of micromarket insights and digitisation
continues to drive growth and efficiency, enabling us to
serve more customers effectively. As of March 31, 2024,
ICICI Bank’s network comprised 6,523 business centres.
Understanding Market
Leveraging High Potential
Segments & Ecosystems
Grow Risk-Calibrated
Profitability
Aligning Business Centres
Planning Business Centre
Expansion in High Activity
Pockets
Execution
Annual Report 2023-24 | 17
Integrated Report
Statutory Reports
Financial Statements
OUR BUSINESS STRATEGY
c. Focus on Ecosystems
In line with the objective of creating customer-oriented
ecosystems, the Bank has developed sector-specific
solutions. These solutions focus on understanding
industry and sector nuances and addressing specific
requirements, which help to support businesses at every
step of their journey. It provides comprehensive digital
solutions for cash management, cross-border/domestic
trade and supply chain finance as well as for their
employees. These solutions cater to broking, custodian
services, real estate, education, FMCG, healthcare,
hospitality, NBFC, pharmaceutical and retail sectors
among others.
The Bank is focussing on enhancing the cross-border
trade ecosystem through various initiatives. It leverages
the power of digitisation to enable decongestion
and simplification of customer journeys. The Bank
captures the end-to-end customer transaction lifecycle
and through AI-driven trade rules, provides cross-
selling opportunities at different stages of trade
transaction within the Bank and across. The entire
proposition is powered by technology solutions built
on strong infrastructure and in a secure environment.
These solutions consist of services such as Instant
Export
Packing
Credit
(InstaEPC),
trade
accounts
(Exchange Earners’ Foreign Currency Account and One
Globe Trade Account), paperless export & import solutions
i.e. e-Docs, i-Docs and e-Softex, foreign exchange
solutions, digital letter of credit facility, electronic bill of
lading (e-BL) and Trade Online i-BOE.
The Bank has broadened its digital payment solutions
to capture opportunities presented by the fast-growing
merchant
ecosystem,
thereby
facilitating
seamless
transactions across various payment platforms. Strategic
partnerships with leading payment partners have
further expanded the Bank's merchants’ market reach.
Additionally, the focus is on enabling the merchants
with relevant payment solutions fostering their digital
transformation.
As of March 31, 2024, 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 ecosystems.
Approach to Ecosystem
Enhance Ecosystem
Opportunities
Multiple Large Ecosystems
Identify all
Opportunities
Across
the Value Chain
Taking Entire
Bank to the
Customer
Leverage
Interlinkages
and Focus on
Execution
3600 Solutions
Covering all
Stakeholders
• Corporate
• NRI
• Merchant
• Student
• GCC
• Healthcare
• E-Commerce
• Cross-Border Trade
• Capital Market
• PE/VC
• MNC
• Start-ups
₹
₹
18 | Annual Report 2023-24
d. Collaborations and Partnerships
Collaborating within and outside 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 in a
safe banking environment.
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, 2024.
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 and automated and effective portfolio
management.
The Bank has not only pioneered the usage of
FASTag for payments at various national and state
highways, toll plazas but also expanded use cases to
parking payments at airports, ports, malls, temples,
hospitals, hill stations, forest and border check posts
across the country. The Bank continues to grow in value
of UPI acquiring transactions by growing faster than
the ecosystem.
Over the recent years, we have witnessed the emergence
of a vibrant startup ecosystem that leverages technology
to simplify payment processes and lending, among other
financial services. ICICI Bank is committed to harnessing
these emerging technologies to add value in four key
areas: generating new revenue streams, enhancing
cost efficiency within existing systems and processes,
managing our risk portfolio more effectively, and
elevating the overall customer experience. In order to
achieve these goals, the Bank is actively building a
comprehensive ecosystem through strategic partnerships
with startups.
The Bank focusses on innovation anchored partnerships
in the early/growth stage startup ecosystem that align
with the Bank’s digital roadmap and possesses the
potential to address developments in the financial
services space effectively. As a part of this process,
we also make equity investments in select startups.
To foster these relationships, we initiate a comprehensive
engagement plan, ensuring that the ideas, products,
and services offered by these startups align with
the Bank’s core values, identify measurable goals and set
timelines. The key to successful and timely engagement
lies in fostering internal connections that amplify synergy.
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. Our collaborations with
startups span various business verticals and domains,
encompassing retail banking, Non-resident Indian (NRI)
banking, corporate banking, treasury solutions, customer
service, internal risk management and compliance/legal
management. In this context, the Bank has adopted a
technology-based approach that enables it to respond to
the changing dynamics in an agile and responsive manner.
OUR BUSINESS STRATEGY
• The value of credit card transactions in fiscal 2024 was 1.3 times the value in fiscal 2023.
• A leader in FASTag with a market share of about 28% in fiscal 2024.
Annual Report 2023-24 | 19
Integrated Report
Statutory Reports
Financial Statements
OUR BUSINESS STRATEGY
II. APPROACH TO DIGITAL, TECHNOLOGY AND PROCESSES
a. Digital Platforms and Solutions
iMobile Pay
FXOnline
iLens
Trade Emerge
API Banking
InstaEPC
OneSCF (Supply Chain)
InstaBIZ
Customised
Solutions
• The volume of UPI person-to-merchant (P2M) transactions increased by 34.4% year-on-year
in fiscal 2024 and the value of these transactions was 1.76 times the value in fiscal 2023.
• The Bank’s market share in value of UPI P2M transactions is about 19.3% in fiscal 2024.
ICICI Bank's digital transformation journey involves
integrating digital technologies and platforms to enhance
customer experience. Providing a diverse range of
services like mobile banking, internet banking, UPI
payments, and digital wallets, the strategy emphasises
accessibility and security for all users. This inclusive
approach
underscores
the
Bank's
dedication
to
offering convenient and secure banking solutions for
everyone utilising the Bank’s platforms. 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.
iMobile Pay: One App Strategy
ICICI Bank’s iMobile Pay app strategy focusses on
delivering a seamless, secure, and personalised banking
experience. The app prioritises accessibility with a user-
friendly interface for easy navigation and access to a
wide range of banking services including account
management,
fund
transfers,
bill
payments,
and
investments. The app also embraces innovation by
integrating emerging technologies like AI-powered chatbots
for customer support and biometric authentication for
login. The coverage of iMobile Pay app has expanded to
standalone loan customers, credit card customers and
non-ICICI Bank account holders. Video KYC continues
to empower retail customers to complete ‘Know Your
Customer’ (KYC) process through video interaction within
a few minutes. Video KYC is live for 22 products, and is
also available for re-KYC.
Security is paramount and it is ensured through advanced
encryption,
multi-factor
authentication
and
other
enhanced security measures such as limit on number of
payee addition, customised transaction limits for internet
banking and additional factor of grid card authentication.
The Bank has also implemented an Enterprise Fraud Risk
Management (EFRM) solution, a real-time transaction
monitoring
system
which
identifies
transactions
anomalies based on customer behaviour patterns and
variety of data attributes. For the transactions qualifying
the risk rule condition, an alert is generated which either
20 | Annual Report 2023-24
iMobile Pay
Payments
Spends
Safety Feature
Savings
Borrow
OUR BUSINESS STRATEGY
declines the transaction or challenges customers with step
up authentication or customer is called for transaction
confirmation through interactive voice response call.
The iMobile Pay app’s addition of ‘My Investment Portfolio’
features a dedicated section offering ICICI Bank
customers
a
unified
view
of
their
investments.
Furthermore, the introduction of iFinance (powered
by account aggregator) presents a comprehensive
solution, accessible to all users across the Bank’s digital
platforms, enabling a consolidated view of all bank
Travel, Shopping
and Offers
Scan to Pay,
Pay to Contact
Bill Payment
and Recharge
IMPS/NEFT/
Quick Transfers
Instant Loans,
Cards, PayLater,
PayLater EMI
Deposits
1 Till March 31, 2024
2 Live in Q1 fiscal 2025
11 mn+
Activations from
Non-ICICI Bank
account holders1
accounts. The addition of UPI for NRIs and smart scan
capabilities simplifies transactions, complemented by
its extensive range of 400+ services, with the unique
voice search that makes navigation across these
services quick and convenient. This holistic approach
redefines digital banking standards, fostering deeper
user engagement and loyalty. These advancements
reflect ICICI Bank’s commitment to ensuring a seamless
and
convenient
personalised
banking
experience
for its customers that evolves with growing needs in the
digital era.
SmartLock2
Personal Finance
Management
Investment
Annual Report 2023-24 | 21
Integrated Report
Statutory Reports
Financial Statements
iLens
iLens - ICICI Bank’s Lending Solution, is an integrated loan
processing platform for retail loans. It is an industry-first
end-to-end digital lending platform covering the entire
loan life cycle, starting from onboarding to disbursement
with the objective of providing superior transaction
experience and enhanced operational efficiency.
It is a future-ready solution which harnesses digital
collaborations with the fintech ecosystem. It is cloud
native, device responsive and has micro services enabled
open architecture which not only allows flexibility to
integrate with multiple internal and external systems
through APIs, but also facilitates faster time to market
and adaptability.
In addition to mortgage which was introduced in fiscal
2023, product enhancements to iLens platform were
made during fiscal 2024 to include personal loan and
education loan. 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 simplified, frictionless and digital manner,
thereby creating value for the customers and the Bank.
iLens acts as a common interface across all users
required in a retail loan journey. It 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 and
fees acknowledgement. It offers a wide range of digital
solutions like instant approval for products to existing as
well as new-to-bank customers, digital disbursements
(e-sign and e-stamp) and digital KYC verifications.
Besides catering to digital loan applications, it also caters
to ‘phygital’ and physical loan applications. It is enabled
with an in-house robust rule engine facilitating efficient
decisioning and standard implementation of various
policy, process and regulatory norms.
OUR BUSINESS STRATEGY
iLens - Digital Platform for Retail Lending Products
One System
for all Stakeholders
One System for
all Workflows
One System for
all Products
Onboarding
Verification
Decisioning
Disbursal
• Paperless Login, Instant
Sanction and Digital
Disbursement
• Digital Collaborations from
Fintech Ecosystem
• Robust Risk Management
Framework
• Real-Time Status Tracking
Mortgage
Personal Loan
Education Loan
22 | Annual Report 2023-24
InstaBIZ: Business Banking App
InstaBIZ: All-in-One App for Business Banking
InstaBIZ is a one-stop solution for all banking needs of
business banking customers. Our ‘All-in-One Business
Banking’ app provides all services to help the customers
with their daily business needs. Customers can apply
for loans, avail instant overdraft, open a current
account,
manage
export-import
transactions,
get
merchant banking solutions, make instant bill and tax
payments, and do a lot more with the business banking
app on the go.
The Bank strives towards continuous improvement
by
actively
seeking
and
incorporating
customer
feedback into developing new & enhanced features
to provide better customer experience through simplified
journeys and intuitive UI/UX.
Digital Platforms and Solutions for Corporate
Customers
ICICI Bank’s digital offerings for large corporates and
their ecosystems include digital platforms for domestic
and international trade, and industry-specific solutions
across the value chain. The Bank has created several
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 include 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. The Bank is investing in areas that are
critical for delivering enhanced customer experiences,
boosting productivity, improving operational efficiency
and creating simplified customer journeys.
The Bank commenced its journey to digitise the
end-to-end Bank Guarantee (BG) issuance process across
all touchpoints, from receiving a request to processing
and delivery, providing an uninterrupted digital experience
to the customers. Trade Online, the flagship platform for
trade transactions, provides a digital channel to place BG
requests online. The Bank has enhanced its BG offering
by introducing Smart BG Assist, a first-of-its-kind solution,
that makes the BG text creation process seamless by
OUR BUSINESS STRATEGY
All Services at
One Place
iFinance
CIBIL Report
FXOnline
Annual Report 2023-24 | 23
Integrated Report
Statutory Reports
Financial Statements
empowering the customers with a Do-it-yourself (DIY)
experience, providing real-time feedback. Smart BG
Assist is enabled across channels and business centres.
The Bank has enabled digital execution of BGs using
e-stamping and e-signing solutions, through empanelled
agencies, that make BGs paperless and help in their
digital transmission. The Bank also provides a digital
repository of BGs for the beneficiaries on Trade Online
which helps them in managing their incoming BGs.
The entire process is crafted in a manner that provides
operational efficiency to all the stakeholders.
Supply chain financing is an increased requirement from
corporate clients for bringing in efficiency and scale
within their supply chain ecosystem. The Bank’s 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 financing needs and thereby increasing
efficiencies in their ecosystem. These supply chain
solutions are offered digitally through various secured
platforms namely OneSCF, Financial Supply Chain
Management (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.
Digital Solutions for Non-Resident Indians
Non-Resident Indians (NRI) banking continues to be a
key growth driver for the Bank’s international banking
business. The focus continues to be on improving customer
experience through enhanced service architecture, value
propositions and seamless processes, with the objective
of capturing Customer 360° and market share.
The Bank was amongst the first few to launch
UPI facility for NRI customers. Currently this facility is
available in ten countries – Australia, Canada, Hong
Kong, Oman, Qatar, Saudi Arabia, Singapore, UAE,
UK and USA. In addition, the welcome kit to on-board
new customers on product and service offerings is now
digital to add to the green initiatives. Simplified servicing
at contact centres through voice biometrics eliminates the
need for subsequent authentication.
Facilitating frictionless cross-border remittance solutions
has been the core strategy in re-designing the Bank’s
solutions for both inward and outward remittance needs
of NRIs and resident Indians. On Money2India-US,
the remittances platform has been upgraded and
integrated for increasing the instant account verification
of remitters. For inward remittances, the Bank continues
to focus on partnerships with other banks and exchange
houses as well as, synergies with the channel teams to
enhance offline remittance flows and service.
On retail outward remittances, focus continues on
leveraging iMobile Pay channel for existing and new
customers. As an industry-first initiative, full value
transfers (Guaranteed Delivery Product) have been
enabled for all retail outward remittances in USD and
GBP currencies facilitating the beneficiaries to get full
value
for
their
underlying
remittance
transaction.
Automation of final credit confirmation to remitters
through an SMS based on the SWIFT Global Payments
Innovation (SWIFT GPI) integration has also been
implemented.
b. Transforming into BankTech
In fiscal 2024, the Bank to BankTech journey has
progressed
with
increased
focus
on
technology
platforms, embedded banking, cloud adoption, data
platform and analytics. The Bank’s efforts continue to
be guided by the three pillars of scalability, resilience
and security across technology solutions.
As a part of the Bank’s technology strategy, the Bank
has created 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.
The Bank has also been reviewing the Generative AI
framework and solutions for possible integration with
applications currently used. The Bank has done an
assessment of the opportunities and risks arising out
of the Generative AI tools and models with initial focus
towards creating internal tools to assist employees to
serve customers better.
OUR BUSINESS STRATEGY
24 | Annual Report 2023-24
The Bank has more than 4,600 APIs, of which close to
1,800 APIs are consumed internally for communication
across applications. The Bank has about 2,600 APIs for
Retail banking and about 200 APIs for Corporate banking.
The Bank has been managing more than 160 million
financial and non-financial transactions per day.
The Bank has expanded its data centres across
regions and is moving towards enabling Availability
Zones
across
application
clusters.
The
Bank
has
been
investing
in
observability
platforms
which
are
critical
towards
ensuring
preventive
and
proactive
responses
across
application
and
infrastructure landscape.
OUR BUSINESS STRATEGY
2,600
APIs for Retail Banking
Over
200
APIs for Corporate Banking
Over
160 million
Financial and Non-Financial Transactions Per Day
Over
• Enterprise Data Platform
• Data & Conversational
Intelligence
• Gen Al for Banking Use Cases
• Robotic Process Automation
• API, Embedded Banking
• Digital Engagement Hub
• Business Rule Engines,
Workflows
• Unified Customer
Experience including
Onboarding Journeys
Across Self-Service and
Assisted Flows
• Enterprise Payments Hub
• Trade Platform,
Remittances
• UPI on Cloud
• iMobile, InstaBIZ
• Internet Banking
• CRM
• Platform Revamp
• Hollowing the Core
• Containerised Deployment
Data & Intelligence
Federation
Onboarding & Servicing
Trade & Payment
Engagement
Core Platforms
Servicing
Onboarding
Transaction
Sales
Scalable
Resilient
Secure
₹
Approach to Technology
Annual Report 2023-24 | 25
Integrated Report
Statutory Reports
Financial Statements
OUR BUSINESS STRATEGY
The fast-moving technology landscape along with
various channels of interaction also means increased
focus on information security across various aspects
of technology beginning from data centre to the cloud
to the entire technology supply chain. The Bank has
adopted an integrated security architecture based
on zero trust principles across data centre and
cloud implementations.
c. Building Efficiencies and Flexibility
The Bank leverages technology to automate and
redesign processes, building end-to-end digital journeys,
removing
redundancies
and
using
public
digital
infrastructure (PDI) to strengthen operational resilience
and deliver seamless customer service.
In the fiscal year 2024, the Bank focussed on better
customer engagement and relationship building at
business centres by consolidating their operational
activities and releasing their capacity through OpsServe
initiative. The Bank has also initiated programs like
UDAAN for NRI, senior citizen campaign for reaching out
to customers proactively for timely servicing.
The Bank is leveraging the changing technological
landscape and the power of subtraction to give a
Customer 360º product onboarding experience to
customers with initiatives such as One KYC, savings
account with home loan, co-branded cards with minimum
data and documentation. The Bank has also focussed
on rationalising variants and removing complexity for
its Business Banking Customers through end-to-end
unified and automated disbursement journeys which has
resulted in leaner processes and reduced turnaround time.
The Bank focusses on simplification of processes and
building digital journeys to create faster and seamless
delivery of services to its customers. The Bank has
upgraded
to
a
single
enterprise-level
Customer
Relationship Management (CRM) platform with enhanced
capabilities for all servicing needs of the customers.
III. APPROACH TO CULTURE
a. One Bank, One Team
The core principle of 'One Bank, One Team' underscores
the Bank's endeavour to harness business opportunities
across
ecosystems
and
micromarkets.
Employees
are equipped with requisite knowledge and skills to
serve customers in line with ‘One Bank, One Team’.
Emphasising teamwork and collaboration to provide
comprehensive financial solutions to customers, is
reflected in the compensation to employees with
performance
bonuses
tied
to
the
overall
Bank’s
performance. Further, the Bank has restructured teams
internally to better support its Customer 360° strategy by
deepening leadership presence in key markets. Through
job rotation, employees gain broader exposure to
banking products and are encouraged to identify
opportunities for Customer 360º within the guardrails of
risks and compliance.
For more details kindly refer 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 kindly refer page 32
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.
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. The
Council undertakes the periodic review on status of
implementation of the policy and updates are provided
to the Board on an annual basis.
For more details kindly refer page 30
26 | Annual Report 2023-24
OUR BUSINESS STRATEGY
The Bank offers financial solutions to micro-finance institutions,
Self-Help Groups (SHGs), co-operatives constituted by farmers
and corporations and Small and Medium Enterprises (SMEs)
engaged in agriculture-linked businesses.
KEY AREAS OF BUSINESS
Retail and Rural Banking
The retail business continued to be a key driver of growth
in fiscal 2024, as we pursued a strategy of building a
diversified and granular loan portfolio. The Bank’s retail
portfolio grew by 19.4% year-on-year to `6,662.61
billion at March 31, 2024. Retail loans accounted for
54.9% of total loans, and including non-fund based
outstanding, the share was 46.8% 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.
In order to capture the growing opportunities in rural
market, the Bank has merged retail and rural business
groups within one structure which reflects the Bank’s
increasing focus towards rural India. The Bank’s rural
portfolio grew by 17.2% year-on-year to `1,024.46 billion
at March 31, 2024, accounting to 8.4% of the total portfolio.
The Bank offers a diverse set of products catering to end-
to-end needs in the value chain. The Bank also provides
consumption loans for low-income customers. Financial
solutions are offered to micro-finance institutions, Self-
Help Groups (SHGs), co-operatives constituted by farmers
and corporations and Small and Medium Enterprises
(SMEs) engaged in agriculture-linked businesses.
The Bank’s strategy to serve the rural segment of the
economy is based on the integrated nature of the rural
ecosystem. The Bank has identified four main ecosystems
in the rural market to enrich the banking experience for
its habitants. These ecosystems include farmers, dealers,
self-employed, and micro-entrepreneurs. The farmer
ecosystem
includes
participants
like
agriculturists,
seed
producers,
agri-input
dealers,
warehouses,
agri-equipment dealers, commodity traders and agri
processors. Products offered include working capital
loans through the Kisan Credit Card (KCC) and gold
loans and term loans for farm equipment, and farm
development. The dealer ecosystem comprises dealers/
distributors of farm equipment, and various inputs and
ancillary suppliers related to rural economy. The self-
employed ecosystem comprises rural entrepreneurs who
are engaged in trading and manufacturing activities
based out of commercial and industrial areas in the
rural market dealing with both agri & non-agri related
products. The micro-entrepreneurs lending space includes
women from the lower-income strata of the population,
non-government organisations and other institutions
working at the grassroots level in the rural economy.
The operational structure and offerings put the Bank in
a unique position to leverage opportunities in different
ecosystems within the rural markets.
The
Bank’s
reach
in
rural
areas
comprises
a
network of branches, ATMs, field staff and business
correspondents providing last-mile access in remote
areas. Of the Bank’s network of 6,523 business centres,
50.7% are in rural and semi-urban areas. Including
the
Business
Correspondent
Agent
network,
the
Bank covers over 9,940 rural locations. There were
over 4,600 ATMs at semi-urban and rural centres at
March 31, 2024 having a proportion of 27% out of the
total number of ATMs pan India.
Small and Medium Enterprises and
Business Banking
The Small and Medium Enterprises (SME) and Business
Banking portfolio comprises exposures to companies
with a turnover of up to `2.50 billion. The SME
and Business Banking portfolio grew by 27.4% to
`1,533.23 billion at March 31, 2024, accounting for
12.7% of the overall portfolio.
Annual Report 2023-24 | 27
Integrated Report
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Financial Statements
OUR BUSINESS STRATEGY
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 (DIY) and Do-It-for-Me (DIFM) through
our
business
centres,
InstaBIZ
mobile
apps
and
the Bank’s website and partner websites. In addition, a
dedicated Relationship Manager completes the Bank’s
approach to providing full 360° solutions to its customers.
The Bank’s focus in these businesses continues to be
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 a couple of scorecards
namely Unicore and Infinity, which cater across customers,
turnover ranges and loan ticket size. A combination of
qualitative and quantitative assessment tools is utilised
to arrive at the final credit decision. Additionally, to
cater specifically to the micro segment, the Bank has
put in place a surrogate programme-based underwriting
process on documents such as bank statement and Goods
and Services Tax (GST) returns for credit assessment.
The
Bank
maintains
a
robust
risk
management
framework to manage the SME and business banking
portfolio. The Bank constantly monitors and analyses
the portfolio to detect stress, thus enabling the Bank to
take early action and ensuring 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.
Wholesale Banking
The Bank’s wholesale banking customers include large
private sector business houses and companies, banks
and financial institutions, public sector undertakings
and central and state government entities. The Bank’s
wholesale banking portfolio grew by 10.0% year-on-year
to `2,582.79 billion at March 31, 2024, accounting for
21.3% of the total portfolio. The Bank also has a strong
The Bank devised comprehensive digital solutions & platforms which are also fulfilled through Do-it-Yourself (DIY) and
Do-It-for-Me (DIFM) through our business centres, InstaBIZ mobile apps and the Bank’s website and partner websites.
28 | Annual Report 2023-24
OUR BUSINESS STRATEGY
franchise among Multi-National Corporations (MNCs),
real estate companies, IT & ITeS and new-age services
companies, along with 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 participants
and custody service providers through digital solutions
improving their operational efficiency.
The Bank’s approach has been to deepen partnership
with its clients and provide support to clients through
their entire life cycle. The Bank caters to various 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 merely being a capital provider. With
the client at the centre, all 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 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 and
vehicle loans.
Supply chain financing is an 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, GST returns, intelligent algorithm with automated
bureau checks and dedupe checks.
The Bank has extensively leveraged analytics to
monitor transactions and the portfolio quality. While
new credit is extended in a granular manner to well-
established and well-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.
Our solutions like CorpConnect and DigitalLite enable corporates to seamlessly manage supply chain financing, payments, collection
and reconciliation requirements in a convenient and paperless manner.
Annual Report 2023-24 | 29
Integrated Report
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Financial Statements
International Business
ICICI Bank’s international presence consists of business
centres in six overseas locations and representative
offices in ten locations outside India. The Bank’s
overseas book was `334.51 billion at March 31, 2024,
accounting for 2.8% of the total portfolio. The Bank has an
IFSC Banking Unit (IBU) in GIFT City Gujarat, an Offshore
Banking Unit (OBU) in Mumbai, and wholly-owned
subsidiaries in the United Kingdom (UK) and Canada.
The Bank’s international franchise focusses on four
strategic pillars, namely the NRI ecosystem comprising
deposits, remittances, investments and loan products;
the MNC ecosystem comprising both foreign MNCs
investing in India and Indian MNCs for their foreign
currency and other requirements outside India, 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.
The IBU in GIFT City endeavours to capture global
banking requirements of the Bank’s client base in India
to enhance the Customer 360° banking experience.
IBU business centre complements the Bank's domestic
business by providing foreign currency banking solutions
OUR BUSINESS STRATEGY
The Bank’s international franchise focusses on four strategic
pillars, namely the NRI ecosystem comprising deposits,
remittances, investments and loan products.
across corporate banking, funds, wealth management
and global markets business. ICICI Bank is a settlement
banker to all three exchanges in GIFT City – NSE IFSC,
India International Exchange (INX) and The India
International Bullion Exchange (IIBX). The Bank has also
obtained clearing, custody and depository participant
licence. The Bank has cleared the maiden transaction
in bullion (gold & silver) on IIBX platform. We have
expanded the retail offerings by introducing four new
currencies for opening savings accounts and term
deposits, bringing the total to eight currencies: USD, GBP,
EURO, CAD, SGD, AED, AUD, and JPY. On the product
front, there has been continuous development over the
past year like initial launch of retail internet banking
for GIFT City customers and simplification of account
opening form.
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.
Online Overseas
Money Transfer
Simple | Secure | Quick
30 | Annual Report 2023-24
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 continuously endeavours to strengthen
its culture and encourage adoption of values and
code of conduct amongst employees and doing business
in a fair and transparent manner. Every action is aimed
at benefiting the customer and the Bank. The Bank
continuously strives to embed relevant principles and
communicate the organisation’s culture on an ongoing
basis. In fiscal 2022, the Bank introduced the Risk and
Compliance Culture Policy, enumerating the guiding
principles for strengthening the risk and compliance
culture, recognising the importance of establishing
effective frameworks and supporting processes that
encourage employees to exhibit the desired ethos
of the Bank.
The Risk and Compliance Culture Policy outlines the
guiding principles and key aspects for their effective
implementation of these principles.
The effective implementation of the policy includes a
governance framework that defines the roles and
responsibilities of the Board, MD & CEO, Executive
Directors,
and
the
Risk
and
Compliance
Culture
Council.
Consistent
and
continuous
communication
of these principles during employee interactions is an
effective mechanism for embedding these core values.
All employees are encouraged to align with these
guiding principles in their activities. Additionally, business
compliance officers are appointed within functional
teams to strengthen compliance practices.
The Bank is committed to acting professionally and
fairly in all its dealings. The ICICI Group Code of Business
Conduct and Ethics provides the values, principles and
standards that should guide the decisions and actions
of the Bank employees. This Code is also the Bank’s
commitment to its stakeholders for adhering to the
highest ethical standards and dealing with integrity.
Return of
Capital is
Paramount
The Guiding Principles
One Bank,
One Team
Fair to
Customer,
Fair to Bank
Compliance
with
Conscience
Agile Risk
Management
Annual Report 2023-24 | 31
Integrated Report
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Financial Statements
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 has a Board-approved Group Know Your
Customer (KYC), Anti-Money Laundering (AML) and
Combating Financing of Terrorism (CFT) Policy. The
policy lays down a risk-based approach in implementing
the AML framework. AML standards of the Bank are
mainly based on two pillars, namely, Know-Your-
Customer (KYC) and monitoring/reporting of suspicious
transactions (MSTR). The policy also requires monitoring
of transactions on pre-defined rules as per the regulatory
guidelines and any suspicious transactions found are
required to be reported to the concerned 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
sanction/banned entities. For the purpose of avoiding
proliferation financing/terrorism financing, the Bank
maintains lists of individuals or entities issued by
Reserve Bank of India, United Nations Security Council,
other regulatory and enforcement agencies, legislation
and internal lists as the Bank may decide from time to
time. Further, while handling cross-border transactions,
the Bank carries out screening of names/parties involved
in a transaction against sanctions lists as mentioned
above and other negative lists, as applicable at that
point of time.
The Bank continuously focusses on effectiveness of
financial controls and assesses compliance with all
relevant regulatory requirements. Key policies of the
Bank are 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 e-mailers, as part of knowledge-
enhancement and awareness, to employees. The
frequency of messages is high for 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
the
objective of staying updated and responsive to the
dynamic and evolving landscape and acting in the best
interest of all stakeholders.
OUR VALUES
Standards of the Group Code of Business Conduct and Ethics
•
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 and Combating Financing of Terrorism
•
Protecting ICICI Group’s Assets
•
Workplace Responsibilities and Social Media
32 | Annual Report 2023-24
FAIR TO CUSTOMER, FAIR TO BANK
The Bank continues to deepen its engagement with customers and
further simplify delivery processes and digital platforms, with a
sharp focus on enhancing efficiency and resilience.
In fiscal 2024, the Bank continued to lay emphasis
on delivering customer delight, providing frictionless
interactions, offering intuitive digital interfaces and
enhancing
customer
advocacy
by
continuously
decongesting processes, digitising and re-imagining
customer
journeys.
We
are
harnessing
new-age
technologies and platforms to enable us to serve
our customers with simplicity. The philosophy of
‘Fair to Customer, Fair to Bank’ and the culture to serve
the end-to-end needs of customers continued to drive
mutually beneficial customer relationships and build
trust in our brand.
Deepening
our
engagements
with
customers
to
understand their expectations and the insights gathered
from proactive product and process walkthroughs,
Net Promoter Score (NPS), Voice of Customer (VOCs),
customer complaints and Root Cause Analysis (RCAs)
helped
in
implementing
various
customer
service
initiatives.
The philosophy of ‘Fair to Customer, Fair to Bank’ and the culture to serve the end-to-end needs of customers continued to drive mutually
beneficial customer relationships and build trust in our brand.
Annual Report 2023-24 | 33
Integrated Report
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Financial Statements
Some of the key initiatives which were implemented for
enhancing service delivery and customer experience were:
ENHANCING AND DECONGESTING
THE CUSTOMER ONBOARDING
EXPERIENCE
The onboarding experience was further decongested by
enhancing Customer 360°, to ensure that no additional
KYC documents have to be submitted when an existing
customer avails a new product from the Bank and
the existing data and documents with the Bank are
processed. Customer 360° was enhanced to cover loans
(home loans, personal loan, auto loan), credit cards,
standalone Fixed Deposits (FD) and NRI products.
VOICE CHANNELS-
ENHANCEMENTS IN SERVICE
DELIVERY
At the Bank’s Voice Channels that handle around five
million engagements every month, the focus was on service
improvement and seamlessly managing the increase in the
customer base. To further enhance the service experience,
various interventions were implemented including:
Virtual Hold
To enable a smooth customer experience of connecting
to the Voice Relationship Manager (RM), a new feature
Virtual Hold was introduced. Once a call is in queue
and the expected wait time is longer than the defined
threshold, a prompt is played on the IVR, where the
customer has the option to receive a call back while
retaining the sequence number in the queue.
V-Serv Plus
This is designed to manage customer queries that may
require expert intervention and a Subject Matter Expert
guides the RM and provides end–to-end resolution.
Voice Biometric
This enables a customer’s voice print to be enrolled for
verification. Instead of entering authentication details,
the customer’s voice is enrolled and utilised for
authenticating future calls.
Enhancing Digital Adoption
For customers calling the Voice channel for availing a
service, the Voice RM has an option to send a WhatsApp
notification to the customer on a real-time basis.
This helps customers to experience the digital journey
and adopt the same for future service needs.
NEW DIGITAL EXPERIENCES
Our digital channels bring together innovation, security
and resilience while delivering customer delight across
journeys and we continually look to enhance our
digital journeys.
•
Features on our digital channels were enhanced to
enable UPI payments for NRI customers through
iMobile Pay.
•
End-to-end digital issuance and set-up has been
enabled for credit cards for both existing and
new customers with the verification of identity,
employment and income being done by leveraging
Video KYC and account aggregator.
•
Various enhancements were introduced in the
iMobile Pay journey for fixed deposits such as
identifying senior citizens and displaying interest
rates accordingly, instant FD creation in one click,
multiple FD creation in the same session and FD for
non-ICICI Bank customers.
•
Digital home loan application and disbursement has
been enabled to offer rapid approval by leveraging
an account aggregator and online rule engine for
verification of identity, income and employment.
Customers can also open a new disbursement request
and track their home loan disbursement directly
through iMobile Pay and retail internet banking
under the loans section.
SERVICE ENABLERS FOR
EMPLOYEES
To facilitate seamless servicing at the business centres,
the Bank’s endeavour is to decongest and simplify
processes and customer journeys to enable the frontline
staff to deliver enhanced customer engagement. For
this, various enablers were implemented at the business
FAIR TO CUSTOMER, FAIR TO BANK
34 | Annual Report 2023-24
FAIR TO CUSTOMER, FAIR TO BANK
centres, such as DigiServe, where operations staff is
available on-site for processing transactions at high
footfall business centres, enabling 100+ services in BOTM
(Branch on the Move), simplification of key processes
such as minor to major conversion and re-KYC and
mobile number updation for NRI customers.
Enablers were also introduced for better handling of
issues that cause emotional anxiety for customers such
as deceased claim. This includes a dedicated helpline,
reference grid for identifying right documents to be
communicated to the customer among others. Credit card
services at business centres were enhanced, with 30+
credit card services being enabled, including change in
address, limit enhancement, activation of auto debit, etc.
Loan and demat servicing were also enhanced across
business centres. During fiscal 2024, the Bank saw a
sustained improvement in the Net Promoter Score (NPS),
reflecting customer value creation and advocacy.
CUSTOMER SERVICE AND
GRIEVANCE REDRESSAL
The Bank monitors key customer service metrics and
complaints through a well-defined framework. The
Customer Service Committee of the Board and the
Standing Committee on customer service convene
on a regular basis to deliberate on 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 are available on the
Bank’s website.
The Bank aims to treat its customers fairly and provide
transparency across its offerings. Continuous customer
education efforts are made to enable customers 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 has a well-defined and comprehensive
grievance redressal mechanism, to provide resolution to
customers with clear turnaround times. The Bank offers
multiple channels to customers to register complaints
including the business centres, voice 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. Detailed Root Cause Analysis
(RCAs) of the issues highlighted in customer feedback,
complaints, etc. are conducted. 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.
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
ORANGE
BOOK
THE
Leverage Your Financial Quotient
APRIL 2024 | VOL. 35
Equinox:
The importance of Balance
ORANGE
BOOK
THE
Leverage your FINANCIAL QUOTIENT
MARCH 2024 | VOL.34
The Orange Book is a monthly e-magazine that educates
customers about personal finance in a simple and easy-to-
understand manner.
Annual Report 2023-24 | 35
Integrated Report
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Financial Statements
personal finance in a simple, easy-to-understand
manner using contextual examples, infographics and
interactive games & puzzles, and helps them to take
better financial decisions. The Orange Book has covered
an array of financial topics from inception till date,
including fundamentals like power of compounding and
emergency fund to goal-based investing, tax saving and
importance of nomination, will writing and succession
planning. The Orange Book also continuously educates
customers about how to protect themselves from
emerging frauds. This initiative has been well-received
by customers.
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
applicable privacy laws in India and overseas locations
to ensure safety and security of data. We believe that
the data privacy framework should be aligned to the
evolving regulatory changes and digital transformation.
The Bank has a presence in several jurisdictions outside
India 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 jurisdictions. It has an integrated and centralised
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 Management Group, Compliance Group and
Legal Group. Any kind of personal data related incidents
reported through the service request undergoes detailed
investigation and a report is presented to PDIHF at
monthly intervals.
As per the Personal Data Protection Standard of the
Bank, it ensures that all personal data it processes is
FAIR TO CUSTOMER, FAIR TO BANK
kept
secure
using
appropriate
technical
and
organisational measures including necessary policies,
processes
and
controls
which
includes
physical
access control, encryption, data protection impact
assessment and providing training to the Bank’s
employees. The Bank periodically updates the Personal
Data Protection Standard to cover the personal data
protection regulatory requirements as applicable to
the Bank in India and its overseas offices to reflect the
changes in data protection laws and regulations.
Privacy regulations require the personal data of
customers to be protected throughout the 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 record of all 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.
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/data fiduciary for its banking activities in India.
The Bank has designated data protection managers/
representatives from each business function and at each
overseas location to ensure the proper implementation of
the privacy standard.
A Privacy Steering Committee, oversees various privacy
related initiatives. Further, the Bank’s Code of Business
Conduct and Ethics includes guidelines on customer
privacy and confidentiality of data.
36 | Annual Report 2023-24
RISK GOVERNANCE FRAMEWORK
The Bank is committed to achieve responsible and sustainable
growth, underpinned by our core values of Return of Capital, Agile
Risk Management and Compliance with Conscience.
As a financial intermediary, the Bank is exposed to
various risks, primarily credit risk, market risk, liquidity
risk, operational risk, technology risk, cyber 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 risk-calibrated growth in profit before tax
excluding treasury.
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
Committees are chaired by Independent Directors
and there is adequate representation of Independent
Directors on each of these Committees. The Board has
framed specific mandate for each of 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.
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 Bank
also has a Financial Crime Prevention Group (FCPG) to
oversee/handle fraud prevention, detection, investigation,
monitoring, reporting and creating awareness about
fraud risk management.
The roles of specific committees of the Board constituted
to facilitate focussed oversight of various risks are:
•
Credit Committee: Approval of credit proposals
as
per
the
authorisation
approved
by
the
Board and review of developments in key industrial
sectors, non-performing loans, accounts under
watch, incremental sanctions, non-fund based
exposures, unsecured portfolio, capital market
exposures, commercial real estate exposures, retail
exposures etc.
•
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.
•
Information
Technology
Strategy
Committee:
Approve strategy for IT and policy documents,
ensure that the IT strategy is aligned with business
strategy, review performance with reference to
IT & IS Key Risk Indicators (KRIs) and conduct
periodic review of KRIs to ensure coverage of IT
& IS 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 including review
of IT capacity requirements and adequacy and
effectiveness of Business Continuity Management
and Disaster Recovery, review of special IT
initiatives, review cyber risk, consider the RBI
Annual Report 2023-24 | 37
Integrated Report
Statutory Reports
Financial Statements
inspection report/directives received from time
to time by the Bank in the areas of information
technology and cybersecurity and to review the
compliance of various actionables arising out of
such reports/directives as may be deemed necessary
from time to time and review deployment of skilled
resources
within
Technology
and
Information
Security function so as to ensure effective and
efficient deliveries.
•
Risk Committee: Review risk management policies
pertaining to credit, market, liquidity, operational,
outsourcing, reputation risks, business continuity
plan and disaster recovery plan. The functions of the
Committee also include setting limits for industry
or country, review the Bank’s Enterprise Risk
Management Framework, Risk Appetite Framework,
Stress Testing Framework, Internal Capital Adequacy
Assessment Process and Framework for Capital
Allocation. In addition, the Risk Committee reviews
the Basel Framework, risk dashboard covering
various risks, outsourcing activities. The Committee
also reviews the cybersecurity risk assessment.
The Bank has put in place an Enterprise Risk
Management (ERM) and Risk Appetite Framework
(RAF) that articulates the risk appetite and drills
the same down 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. 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.
The Reputation Management Forum, comprising Executive
Directors 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
mitigate reputation related risks. 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, 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. The
Group has unrestricted access to information within the
Bank to assess compliance with the regulatory guidelines.
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.
With
increasing
digitisation,
ensuring
effective
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 for
customer data captured by the Bank. The CDO is also
responsible for implementation of the Bank’s Data
Governance Policy.
Independent Groups for Monitoring Risks
•
Risk Management Group
•
Compliance Group
•
Internal Audit Group
•
Financial Crime Prevention and Reputation
Risk Management Group
RISK GOVERNANCE FRAMEWORK
38 | Annual Report 2023-24
CYBERSECURITY GOVERNANCE
Cyber risk management forms an integral part of the
Bank’s enterprise risk management framework. The
Bank is committed and working towards aligning
itself with the changing threat landscape and has a
dedicated team for cyber/information risk management.
Our cybersecurity governance encompasses management
oversight at various levels with the ultimate responsibility
assumed by the Board of Directors. Regular updates
are provided by the Information Security Group (ISG)
of the Bank.
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
Key Risk Indicators (KRIs) /dashboard to review system
stability, continuity and availability and network uptime.
The Bank also has a well-defined Information Security
Policy, Cyber 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,
National Critical Information Infrastructure Protection
Centre (NCIIPC) Guidelines for Protection, Federal
Financial
Institutions
Examination
Council
(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 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 has a 24x7 Security Operation
Centre for monitoring and surveillance of information
technology systems. Considering the criticality and vitality
of data protection, we have deployed a Data Leakage/
Loss Prevention system with data protection rules for
sensitive data exposure from the Bank’s endpoints,
emails, and web gateways. The Bank’s Data Centre and
Security Operations Centre are ISO 27001 certified.
RISK GOVERNANCE FRAMEWORK
Governance Structure for Information Technology
Board
Sub-Committees
IT Strategy
Committee
Risk
Committee
Audit
Committee
Executive
Committees
Information
Technology (IT)
Steering
Committee
Information &
Cybersecurity
Committee
Business
Continuity
Management
(BCM) Steering
Committee
Board of Directors
Annual Report 2023-24 | 39
Integrated Report
Statutory Reports
Financial Statements
Controls for IT Infrastructure
Preventive Control
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
Detective Control
y
Security Operation Centre
(SOC) Monitoring
y
Web Application Firewall
y
Network Operation Centre
(NOC) Monitoring
y
RED Teaming Exercises
Responsive Control
y
Incident Response Plan
y
Cyber Crisis Management
Plan (CCMP)
y
Forensic Agreements with
Partners
PARTICIPATION IN EXTERNAL
CYBERATTACK SIMULATIONS
The
Bank
conducts
and
participates
in
several
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 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.
In view of rapid digitisation and growing cyber threats
it is very critical to respond quickly and effectively when
security incidents occur. The Bank has a dedicated
Cybersecurity Incident Response Team (CSIRT) to
respond security incidents following a well documented
Incident Response Plan. Further, the Bank has a
Disaster Recovery (DR) plan to ensure continuity of critical
services to customers and availability of identified critical
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.
There were no material incidents of security breaches or
data loss during fiscal 2024.
RISK GOVERNANCE FRAMEWORK
40 | Annual Report 2023-24
ESG Governance
Overarching Environmental, Social and Governance Policy
• Broad Focus Areas
y Responsible Financing
y Environmental Sensitivity in the Bank’s Operations
y Customers
y Employees
y Society
y Corporate Governance
y Cybersecurity and Data Privacy Governance Framework
y Stakeholder Engagement and Accountability
• Policy Available on the Bank’s Website
Governance Structure
Board of Directors -
Annual Update
Risk Committee - Semi
Annual Reporting
ESG Steering Committee -
Quarterly Meetings
Dedicated Team within CFO’s Office
Team Tracks ESG and CSR Initiatives
ENVIRONMENTAL, SOCIAL AND
GOVERNANCE (ESG)
During
fiscal
2024,
the
Bank’s
focus
was
on
strengthening its sustainability practices and integrating
ESG principles in its operations and strategy. Managing
the
Bank’s
environmental
impact
and
effective
governance practices were key drivers of various
initiatives undertaken during the year. The ESG Steering
Committee, comprising functional heads across the Bank,
continued to provide guidance and oversight on the ESG-
related action plan for the year. The Risk Committee
and the Board reviewed material ESG matters during
fiscal 2024, 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 made by the Bank during
the year.
ESG RATINGS
The ESG practices of the Bank are evaluated by external
rating agencies like Sustainalytics and MSCI. The
improvement in the Bank’s ESG ratings is evidence of
the progress being made across various areas. The
ESG score by Sustainalytics improved from 23.9 to 22.5
within the Medium Risk category during fiscal 2024. MSCI
rating is maintained at A during the year. The rating from
CDP Worldwide is at C, which is the same as the Asian
regional average.
RISK GOVERNANCE FRAMEWORK
Annual Report 2023-24 | 41
Integrated Report
Statutory Reports
Financial Statements
ESG-related Developments During Fiscal 2024
•
The Bank significantly increased the proportion of renewable energy in its total energy consumption from grid
and on-site solar from 9% in fiscal 2023 to 35% in fiscal 2024. This was enabled through the procurement
of green tariff power for the Bank’s facilities in Maharashtra and in Hyderabad.
•
The Bank’s total Scope 1 and 2 emissions declined by 15.7%, driven by a reduction in Scope 2 emissions by
19.7% during fiscal 2024.
•
Evaluation of the Bank’s Scope 3 emissions in own operations was expanded to include the upstream
categories of capital goods and employee commuting, apart from business travel.
•
Better identification and management of risks relating to climate and ESG was an ongoing effort at the
Bank, which involved sectoral analysis of hard-to-abate sectors to transition risks, and expanding the ESG
risk assessment tool to more sectors.
•
Several communications relating to well-being were disseminated to employees through a dedicated portal,
which included videos and webinars focussing on areas like health and fitness. The portal is also an avenue
for employee volunteering in CSR activities.
•
Initiation of better monitoring and measurement of water and waste management efforts resulted in the
BKC Service Centre (Corporate Office) getting a rating of ‘Net Zero Waste’ in the category of ‘Net Zero Waste
to Landfill (Operations)’ by the Indian Green Building Council.
•
A dedicated section on ESG was introduced on the Bank’s website to improve disclosures on our
sustainability journey.
•
Continuous engagement with internal stakeholders to build awareness and create capabilities.
•
The Bank has initiated efforts to strengthen the governance on ESG data collation and reporting.
The Bank is committed to minimising the environmental impact of its operations and business. The Bank has set
a target to become carbon neutral in its Scope 1 and Scope 2 emissions by fiscal 2032.
More details are available in the Bank’s ESG Report and Business Responsibility and Sustainability Report (BRSR) for fiscal 2024 on
the Bank’s website.
RISK GOVERNANCE FRAMEWORK
42 | Annual Report 2023-24
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.
In fiscal 2024, the Bank continued to monitor the risks it
is exposed to, including economic, credit, market, liquidity
and operational risks. Apart from these traditional risks,
the Bank is also cognisant of emerging new-age risks due
to 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 for evaluating climate-related financial risks.
The Bank has formulated a Climate Risk Management
Framework (CRMF) for integration of climate risk into
overall risk management framework and it guides on
identifying and assessing the impact of both physical
and transitional risks on the lending portfolio. The
framework will undergo periodic reviews to ensure
alignment with available regulatory climate risk guidance,
reflecting the evolving understanding and assessment
of climate risk. The Bank has also been participating in
policymaking by providing inputs and supporting the
regulator in assessing impact of climate change risks on
specific sectors.
Challenges posed by tightening monetary
policy, withdrawal of liquidity by the central
bank and exchange rate movements.
Comprehensive policies and periodic reviews
at the level of Board and committees; strategic
priority towards asset liability management
and
strengthening
the
Bank’s
liability
franchise.
Market and
Liquidity Risk
Risk Type
Key Risks
Our Response
Uncertainties
pertaining
to
elevated
geopolitical risks, continuing high interest
rates for longer periods and weak global
growth outlook across the world 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.
Credit
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.
Economic
Risk
Annual Report 2023-24 | 43
Integrated Report
Statutory Reports
Financial Statements
Risk Type
Key Risks
Our Response
A disruption on account of information
technology failures, internal/external frauds,
execution/delivery process errors, model
errors or third-party dependencies.
Effective risk management policies in the
area
of
operational
risk,
information
technology risk, third-party dependencies,
model risk along with regular review and
reporting/analysis of loss incidents. The Bank
continues to focus on simplifying processes
and platforms to minimise operational risk.
Operational
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 2024.
Cyber
Risk
The growing customer dependence on
digital transactions and the rising volumes
of such transactions requires banks to focus
on the resilience, availability, scalability
and security of our systems. Misalignment
between business and IT strategies is
a risk.
The
Bank
is
proactively
investing
in
technology
and
improving
its
response
to changing technological dynamics. The
cross-functional
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
has also been reviewing the opportunities
and risks arising out of Generative AI
framework
and
solutions
for
possible
integration with applications currently used.
The Bank’s IT systems were stable and largely
uninterrupted during fiscal 2024.
Technology
Risk
As a domestic systemically important
bank (D-SIB), compliance with regulations
and preparedness to evolving regulatory
landscape is a key priority for the Bank.
The Bank has established well-articulated
policies and controls to ensure compliance
with
laws
and
regulations.
Continuous
evaluation and updating the policies and
processes is done to remain relevant and
compliant. A strong compliance culture
driven by the Bank’s leadership is enabling
timely action.
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.
Provide opportunity for job rotation and
enhance career growth and development;
employee well-being and upskilling are key
priorities.
Employee
Risk
RESPONDING TO RISKS AND OPPORTUNITIES
44 | Annual Report 2023-24
MATERIALITY ASSESSMENT
To determine the most material topics, a materiality assessment
exercise was conducted by the Bank to identify key material topics
for our stakeholders and business.
Our latest materiality assessment was carried out in fiscal 2022. The 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
Annual Report 2023-24 | 45
Integrated Report
Statutory Reports
Financial Statements
1 Compliance with regulations and other laws
2 Digital innovation/transformation
3 Data privacy and cybersecurity
4 Corporate governance and business ethics
5 Transparency and disclosures
6 Improving customer experience and satisfaction
7 Customer fairness and right-selling
8 Financial performance
9 Stability of risk management and risk outcomes
10 Leadership development and succession planning
11 Employee health and well-being
12 Board diversity including qualification/experience
13 Grievance redressal mechanism for stakeholders like
customers and employees
MATERIALITY MATRIX
KEY MATERIAL ISSUES
14 Opportunities for learning, development and training
for employees
15 Diversity and inclusion
16 Promoting financial inclusion, access and literacy
17 Social impact and governance evaluation in lending
18 Employee engagement and feedback mechanism
19 Promoting environment positive projects (e.g. lending
to 'green' sectors)
20 Responsible sourcing and sustainable procurement
practices
21 Participating in community development
22 Carbon emissions and resource efficiency in the
Bank’s own operations
23 Exposure of the Bank to climate-related risks in its
loan portfolio
Importance to Internal Stakeholders
Importance to External Stakeholders
Environmental
Social
Governance
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
MATERIALITY ASSESSMENT
46 | Annual Report 2023-24
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:
MATERIALITY ASSESSMENT
Risks
Being
a
domestic
systemically
important
bank
and among the top five listed entities (by market
capitalisation)
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.
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.
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 kindly refer page 30
For more details kindly refer page 19
How We Are Responding
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.
The
Bank’s
control
functions
ensure
that
businesses and operations are aligned with
best practices.
How We Are Responding
We aspire to create digital innovations with
rich
need-based
features
and
functionalities
for
customers.
The
Bank’s
digital
platforms
have transformed to provide seamless digital
journeys.
Compliance with Regulations and Other Laws
Digital Innovation/Transformation
Annual Report 2023-24 | 47
Integrated Report
Statutory Reports
Financial Statements
MATERIALITY ASSESSMENT
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.
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.
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 kindly refer page 35 and 38
For more details kindly refer page 30
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. The Bank will continue to
invest in building resilience and to effectively
respond to cyberattacks; the Bank has significant
focus on data privacy and data loss prevention
mechanisms.
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.
Data Privacy and Cybersecurity
Corporate Governance and Business Ethics
48 | Annual Report 2023-24
MATERIALITY ASSESSMENT
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.
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.
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.
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 kindly refer page 32
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.
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.
Transparency and Disclosures
Improving Customer Experience and Satisfaction
Annual Report 2023-24 | 49
Integrated Report
Statutory Reports
Financial Statements
MATERIALITY ASSESSMENT
Risks
Failure to serve customer with appropriate product
offering and 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.
Risks
The Bank’s performance is closely associated with
the growth in the Indian economy. Any significant
challenges posed by the external environment and
rapidly evolving regulations could pose a risk to the
financial performance of the Bank.
Opportunities
The Bank’s approach is to identify opportunities across
ecosystems and micromarkets by efficiently serving
customers with 360º solutions as well as continue to
engage with all key stakeholders. Consistent financial
performance can encourage stakeholders to remain
associated and help the Bank deliver on its vision to
be a trusted financial partner for our customers.
For more details kindly refer page 30
For more details kindly refer page 123
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 profit before
tax excluding treasury within the guardrails of
risk and compliance. The Bank is fostering a strong
risk and compliance culture to ensure a balance
of risk and rewards and ethical engagement with
its customers. We are investing in areas that are
critical for improving productivity and operational
efficiency.
Customer Fairness and Right-Selling
Financial Performance
50 | Annual Report 2023-24
MATERIALITY ASSESSMENT
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.
For more details kindly refer page 36
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. Further, detailed and periodic reviews are
conducted at various Board Committees on the
portfolios and operations of the Bank.
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.
For more details kindly refer page 52
How We Are Responding
The Bank has institutionalised a succession
planning and leadership development initiative
to identify and groom leaders for next-level roles.
The Bank through the Senior Management Cover
Index, 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.
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.
For more details kindly refer page 66
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.
Promoting Environment Positive Projects
Stability of Risk Management and Risk Outcomes
Leadership Development and Succession Planning
Annual Report 2023-24 | 51
Integrated Report
Statutory Reports
Financial Statements
MATERIALITY ASSESSMENT
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 kindly refer page 68
How We Are Responding
The
Bank
is
committed
to
minimising
the
environmental impact of its operations and facilities
by adopting best practices and certifications for
green building standards. It has committed to
become carbon neutral in Scope 1 and 2 emissions
by fiscal 2032.
Carbon Emissions and Resource Efficiency in the Bank’s Own Operations
Risks
The impact of climate change poses tangible risks
to the Bank’s own operations as well as business
resilience of its borrowers. The consequences of
climate change include both incremental effects (a
long-term change in the mean and variability of climate
pattern) and acute effects (increase in frequency
and severity of extreme weather event). Assessing
physical and transition risks are important to
understand the impact of climate change events that
can be felt across the Bank’s own operations as well
as business models of its borrowers.
Opportunities
Significant opportunities are likely to emerge as
efforts gain traction to meet commitments towards
sustainable growth and transition to become carbon
neutral or net zero. The Bank has been supporting
sustainable and sustainability-linked projects in areas
like renewable energy, electric vehicles, green buildings,
sanitation, waste management, etc. based on an
appropriate risk-return assessment.
For more details kindly refer 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 for climate risks, both physical and
transition risks, for top corporate counterparties has
been included as part of stress testing as well as
capital planning exercise.
Exposure of the Bank to Climate-Related Risks in its Loan Portfolio
52 | Annual Report 2023-24
HUMAN CAPITAL
The Bank’s success is anchored by its people and a culture of
‘One Bank, One Team’ driving its business.
The Bank’s human capital strategy is underpinned
by key anchors of Fair Compensation, Learning and
Growth, and Care. Our human capital strategy is designed
with our focus on maximising risk-calibrated core
operating profit based on the opportunities available
across micromarkets and ecosystems. To capture the
360° banking needs of customers, every employee is
encouraged to identify opportunities and drive business
for the Bank.
The
Bank
has
aligned
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 micromarkets level. The corporate office
operates as a service centre and the purpose of the
central team is to serve the employees. The Bank
encourages its employees to experiment and innovate to
deliver services and create solutions for customers within
the guardrails of risk and compliance.
The Bank’s hiring philosophy is drawn from the cultural
anchors of the Bank. The Bank believes in hiring for
attitude and training for skills. Wherever required, the
Bank uses personality inventories to better understand
the work preferences/behaviours along with cultural
fitment with the Bank’s values.
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. During fiscal 2024, the Bank deepened the
number of employees who were allotted share-linked
compensation
to
around
18,350
employees.
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 focus on a 360º customer-centric approach with an
objective to serve customers in a holistic manner has
underpinned the Bank’s operations. To deliver superior
customer value, 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.
The Bank has a capability building architecture spanning
across functional training, leadership development,
digital and industry academia programmes to equip
employees with the required skillsets.
Industry Academia Partnerships
The Bank has collaborated with academia partners to
onboard a high quality, job-ready workforce. One of the
key aspects of the industry academia programmes is
the skills it builds in the banking, compliance, financial
and digital services domains. These industry academia
programs align new hires to the culture of the Bank
and impart functional knowledge in banking and
related subjects.
Annual Report 2023-24 | 53
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Financial Statements
HUMAN CAPITAL
Apart from fresh graduates, existing 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 existing 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.
The Bank continued its focus on Capability Building
through its various academies. During April 1, 2023
to March 31, 2024, the Bank delivered an average of
around 12 learning days of training per employee.
Customer 360º Programme
Customer 360º (C360) programme is designed for all
Relationship Managers who join the Bank to inculcate
C360 mindset. The objective is to take the entire
Bank to the customer and provide end-to-end solutions
to address customer needs. The programme provides
comprehensive understanding of C360 focussing on
product
knowledge,
building
C360
in
customer
engagement through various scenarios, pertaining to
relationship management, customer service, digital
propositions and process & compliance.
Once employees in relationship management roles
complete the C360 programme, they have options
to further deepen their knowledge in areas like trade
products, business banking, asset products, etc.
Risk and Compliance Workshops
Risk and Compliance workshops are conducted for
employees in business centres and other retail banking
groups, Compliance Group and Wholesale Banking
Group (including for Business Heads & Regional Heads)
to equip them with the necessary skills to make decisions
based on the principles set out in the risk and compliance
framework of the Bank. The programme discusses
various scenarios where the learners understand the
approach in line with the risk and compliance framework.
The session is also conducted as part of Branch
Leadership Programme for new Branch Managers.
Industry Academia Initiatives
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
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
ICICI Young Leaders
Programme (YLP)
12-month career acceleration
programme designed for employees
54 | Annual Report 2023-24
Branch Leadership Programme
Branch Leadership Programme is the Bank’s flagship
training programme for new Branch Managers and
Deputy Branch Managers. It is an instructor-led classroom
programme
focussed
on
inculcating
the
cultural
framework of ICICI Bank along with detailing key
aspects of their roles. The programme revolves around
Customer 360º, ecosystem and micro-market concepts.
Each programme provides opportunity to engage
with senior management to build perspectives around
Customer 360º, service orientation and operating within
the risk and compliance norms of the Bank. The training
covers ‘Go to market’ approach, branch profitability, risk
and compliance, micro markets strategy, selling skills and
relationship management, ecosystem banking, customer
service, trade, transaction banking, institutional banking,
business banking, overview of products and solutions
with focus on digital adoption.
Functional Academies
In order to nurture talent and build domain-specific skills,
ICICI Bank has deployed a wide range of functional
academies
which
conduct
several
programmes.
These academies cover new joinees to the Bank, new
joinees to various roles and also refresher programmes
for existing employees. These are designed around
ICICI Bank cultural framework, business and functional
skills, and also impart behavioural training as a part
of the programme. The focus of functional induction
programmes is to ensure that all employees who join
the Bank have sufficient learning inputs which they
can put into use on the field and supplement their on-the-
job learning.
Digital Academy
In line with the vision of building a scalable, future-ready
and data-driven organisation, the Bank continues on its
journey of transformation from Bank to BankTech. To meet
this objective, identified employees have been trained in
skill domains like API (application programming interface)
& micro services, cloud computing, data engineering,
software
engineering
and
project
management.
Programmes on cybersecurity, technology infrastructure,
UI/UX design, artificial intelligence and software testing
have also been rolled out for identified employees.
In addition to the above programmes, the Bank
conducted refresher programmes for employees in
the areas of product, processes, compliance & on
various technology systems. The Bank also conducted
behavioural skilling in areas of personal effectiveness,
interpersonal skill building, presentation skills and leading
teams for identified employees.
Capacity Building
In line with regulatory expectation around Capacity
Building in Banks, eligible employees in the areas of
credit, accounting, risk and treasury, have been enrolled
for certification with accredited institutes.
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 domains of leadership, digital
transformation, data 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.
Under the umbrella of Leadership Academy, the Bank
organises formal leadership development programmes
on four identified themes of Technology, Data Science,
Design Thinking and Project Management.
Learning Assessment
The objective of conducting learning assessment is to
understand how design and delivery of training content
may be improved. The Bank’s learning culture places a
strong focus on confirming whether learners are indeed
able to demonstrate understanding and application
of basic concepts learnt in online and instructor-led
functional programmes. This is generally in the form of an
application-oriented test which is administered through
Learning Matrix – the Bank’s internally managed learning
platform. The universal passing criteria for all assessments
HUMAN CAPITAL
Annual Report 2023-24 | 55
Integrated Report
Statutory Reports
Financial Statements
is 80%. The performance of employees on assessments
is continually evaluated to fine-tune training content and
for giving feedback to our internal facilitators.
Academic Councils
The Bank has constituted academic councils comprising
senior leaders from various functions to meticulously
design and oversee the curriculum and delivery of its
key training programmes. These councils bring together
a wealth of knowledge and experience from diverse
areas such as retail banking, corporate finance, risk
management, and technology, thus ensuring a holistic
approach to employee development. By incorporating
insights from different business units, the academic
councils ensure that the training programmes are not
only comprehensive but also aligned with the Bank’s
strategic goals and dynamic needs of the business.
Through continuous feedback and review mechanisms,
the academic councils also play a pivotal role in the
ongoing refinement and enhancement of the training
initiatives, fostering a culture of continuous learning and
professional growth within the organisation.
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.
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 Senior
Management Cover Index, 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 play a pivotal role in 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.
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 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
HUMAN CAPITAL
56 | Annual Report 2023-24
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).
At the Bank, sexual harassment cases are handled as
per the guidelines set under The Sexual Harassment
of Women at Workplace (Prevention, Prohibition &
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 iCare provides employees
with a platform to deal with their queries and concerns.
I-Care Service Platform
Service and innovation lie at the heart of our commitment
to employee satisfaction and operational efficiency. 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. Our
proprietary system, iCare was launched in fiscal 2024
which has changed the way we manage employee
enquiries and service requests. iCare integrates different
channels, email, phone, chatbots and call centre over the
same platform. Furthermore, it offers a ‘zero drop-off’
experience, ensuring that employee issues are attended
to even if their assigned HR manager is on leave or busy.
By harnessing the power of automation and AI, iCare
has decreased turnaround time and improved access to
employee services. Employees can avail these services
through email, phone calls, or through ICICI Bank’s
proprietary app – Universe on the Move.
Empowering Women Employees
HUMAN CAPITAL
Travel
Accompaniment
Child Care
Leave
Adoption
Leave
Fertility
Leave
Maternity
Leave
Annual Report 2023-24 | 57
Integrated Report
Statutory Reports
Financial Statements
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 Bank’s cultural anchors including ethical conduct,
adherence to regulations and compliance. Business
centre visits are also an important part of 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
Executive
Director
with
the
leadership team.
Conversation Sessions
Through Conversation sessions, the Leadership Team
engages with employees to emphasise on Bank’s cultural
anchors. It helps in aligning employees to the ethos of
the Bank. These sessions are also forums for employees
to engage with Business leaders and serve as listening
posts for the employees.
I-Engage
Onboarding sessions are conducted by Business and
HR managers to induct all new hires to the Bank’s
culture and systems.
HUMAN CAPITAL
Diversity, Equity and Inclusion
ICICI Bank is committed to nurturing and promoting a culture of diversity, equity and inclusion (DE&I).
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 across the Bank
•
Ensure that ICICI Bank 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.
58 | Annual Report 2023-24
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.
DIGITAL@HR
Universe on the Move – the employee app
HUMAN CAPITAL
Annual Report 2023-24 | 59
Integrated Report
Statutory Reports
Financial Statements
ICICI Careers
To attract the best talent, the Bank has created a
digital careers platform to provide aspirants a seamless
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. With the evolving employee
needs, the Bank is committed to serve employees with
passion and care.
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 like leaderboard, social 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.
AI/ML
Functional Skill
Start Learning
iMobile Pay Modules
Functional Skill
Start Learning
Excel in Excel:
Graphs and Charts
Functional Skill
Start Learning
Data Protection
Functional Skill
Start Learning
ARTIFICIAL INTELLIGENCE
& MACHINE LEARNING
To access from Laptop/Desktop click
Go to Course below
Path for Learning Matrix mobile app:
UOTM > App Drawer > Learning Matrix
HUMAN CAPITAL
60 | Annual Report 2023-24
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.
The Bank continuously endeavours to understand 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.
ENGAGING WITH OUR KEY STAKEHOLDERS
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
Engagement with employees is through
various platforms including townhall sessions
with directors, periodic communication
meetings and business centre visits by
senior leaders, videos to communicate
with employees through the 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
• Meritocracy
• Responsive grievance handling process
Our Response
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 supporting them in their next
career move early in their professional journey. 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. Principles of
Diversity, Equity and Inclusion are embedded in HR practices
at the Bank. The fair compensation policy aligns rewards
with prudent risk taking. Care and well-being of employees
is a key focus area and relevant policies and practices have
been established in this regard. The Bank has a culture
where employees can raise issues freely and can expect their
grievances / concerns to be handled in a sensitive manner.
For more details on the Bank’s HR practices, please refer to the Human Capital chapter on page 52 and the
Business Responsibility and Sustainability Report.
Annual Report 2023-24 | 61
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Financial Statements
SOCIAL AND RELATIONSHIP CAPITAL
Shareholders/Investors
Society
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
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
• Operational resilience
• Transparency
• Disclosure on non-financial metrics like ESG
Our Response
During fiscal 2024, the Bank continued to deliver sustainable
return on capital to shareholders. The Investor Relations team
provides details on the performance and strategic objectives
of the Bank during quarterly results 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 regard to the journey on sustainability in the Bank’s own
operations and management of climate-related financial risks.
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.
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.
Subjects considered important by the society:
The ICICI Foundation team extensively
engages with local authorities and people to
understand needs and development gaps. The
key asks have been to address the need for
health facilities, overcome water shortage and
prevent environment degradation.
Our Response
During fiscal 2024, the Bank fulfilled its obligation of
`5.17 billion towards CSR activities in compliance with the
CSR rules under the Companies Act, 2013. The approach to
undertake CSR activities included adopting a holistic approach
at micro level to address developmental gaps and design
comprehensive solutions underpinned by the objectives of
sustainability and scalability. Environment and healthcare were
major areas of focus for the Bank’s CSR activities in fiscal 2024.
As a large financial institution, the Bank recognises the
importance of engaging with its value chain partners on ESG.
The Bank’s supplier code of conduct and also checklists on ESG
factors for onboarding of new vendors are providing a basis
for engaging with our vendors on these aspects and building
awareness on the need for adopting green procurement
standards and promoting social factors like human rights,
diversity and inclusion.
62 | Annual Report 2023-24
Regulator
Being a systemically important bank in India, ensuring resilience and stability is important for the Bank.
How Do We Engage
Our engagement with the regulators is
ongoing, through periodic meetings and other
forms of communications like emails, letters,
etc. The Bank also participates constructively
in policy forums organised by the regulators
and also responds to policy-related discussion
papers issued by the regulators.
Subjects considered important by regulator:
• Governance and building sound compliance
culture
• Fair treatment of customers and grievance
redressal
• Anti-money laundering and fraud risk
• Operational and cyber resilience
• Financial stability
• Data, information and reporting quality
Our Response
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. The Bank undertakes various awareness
and training initiatives to enhance Bank’s focus towards
customer conduct.
Customers
We are committed to understanding the requirements and expectations of our customers, and continuously
engage with them to shape Customer 360º experiences.
How Do We Engage
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. There are also quarterly
interactions organised between customers and
the Customer Service Committee of the Board.
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
• Secure and simplified delivery of services
Our Response
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.
SOCIAL AND RELATIONSHIP CAPITAL
Annual Report 2023-24 | 63
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Financial Statements
CORPORATE SOCIAL
RESPONSIBILITY (CSR)
Social issues such as access to healthcare, prevention
of environmental degradation, skill development and
livelihood opportunities remain critical areas requiring
support in India. Creating a thriving society and
economy requires significant investments in these areas.
The Bank, through its implementing arm, the ICICI
Foundation for Inclusive Growth (ICICI Foundation), has
focussed on creating a positive impact through its CSR
initiatives and is working directly with communities and
stakeholders to meaningfully contribute in these areas.
The activities are also aligned with the United Nations
(UN) Sustainable Development Goals (SDGs).
During fiscal 2024, the Bank’s contribution towards
social causes was `5.19 billion. The CSR initiatives
were mainly in the areas of healthcare and sanitation,
environmental
and
ecological
projects,
livelihood
and social interventions focussed on meeting specific
local needs.
In the area of healthcare, support was extended for
cancer care, cardiac care, eye care and trauma care by
providing equipment, funds for surgeries, undertaking
capacity building, organising eye screening camps and
support for emergency care.
In the area of environment and ecology, extensive
watershed and rainwater harvesting projects were taken
up during the year as part of water conservation projects.
Till March 31, 2024, total water harvesting potential of
about 25.8 billion litres has been created across rural
India. The other area of extensive work done is in forest
conservation. The initiatives on forest conservation and
ecology included ensuring water availability, restoring
habitat, enhancing biodiversity, preventing soil erosion,
supporting afforestation and livelihood creation, and
other green initiatives which included installation of
renewable energy capacity for creating grid-free forests
and supporting clean energy in villages. These efforts
were across 53 forest reserves as on March 31, 2024.
Successful rejuvenation of Alkoda Lake in Raichur District,
Karnataka.
Counselling by a child nutritionist at Cachar Cancer Care Hospital
and Research Centre in Silchar, Assam.
• More than 3.7 million trees have been
planted till March 31, 2024.
• The various CSR initiatives have created
a positive impact for over 12.8 million
beneficiaries.
SOCIAL AND RELATIONSHIP CAPITAL
64 | Annual Report 2023-24
ICICI Foundation engaged with marginal and landless
farmers and provided support for agricultural value chain
development, livestock rearing and skill development
for livelihood. This effort benefited about 80,000
individuals across various projects in fiscal 2024.
As part of social interventions, projects were undertaken
based on local needs and enabling community welfare
and
included
activities
such
as
development
of
infrastructure in remote areas, promotion of financial
literacy, and improvement of access to education among
marginalised communities.
For more details on ICICI Foundation’s activities, refer to
the Bank’s ESG Report for fiscal 2024.
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
SOCIAL AND RELATIONSHIP CAPITAL
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 has been extending loans/providing financial
support to less privileged women of the country
through Self Help Groups - Bank Linkage Programme
(SHGs-BLP) for over a decade, to give a boost to their
entrepreneurial spirit. These initiatives have positively
impacted 10.49 million women across the country through
approximately 8.9 lakh SHGs loans as on March 31, 2024.
Of these, over 4.67 lakh were first-time borrowers, who
had not taken a loan from any formal financial institution.
These SHGs are engaged in livelihood-generating
activities which are helping them scale up their economic
enterprises and improve financial security.
During fiscal 2024, the Bank availed USD 100 million
from a financial institution for onward lending through its
SHGs-BLP that aims to empower less privileged women
in India to become self-reliant and to help them expand
their businesses and enhance their earning capability.
Members of an SHG in Palakurthy from Jangaon District,
Telangana, being informed about SHG loans that they can avail
from ICICI Bank.
Locals using a footbridge in a village in Raesi District, Jammu
constructed through ICICI Foundation’s efforts.
Annual Report 2023-24 | 65
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Financial Statements
In addition to direct customers, the Bank reaches out
to about 2.2 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. These 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, 2024, 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.
Digital Banking Unit (DBU)
Technology has played a key enabler in fostering financial
inclusion. The delivery of financial services in remote
unbanked and under-banked areas has been made
possible due to digitisation. In fiscal 2023, the Government
of India announced the launch of 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 both self-service
and assisted mode. The Bank set up four such DBUs
which were launched in October 2022. Key performance
parameters of the DBUs during April 2023 - March 2024
were as follows:
List of Activities
Number
No. of accounts opened
1,517
No. of credit cards
839
No. of loans
259
Count of financial transactions
91,485
Count of non-financial transactions
16,511
No. of frauds
Nil
No. of grievances received
11
No. of digital awareness/literacy
camps arranged
197
SOCIAL AND RELATIONSHIP CAPITAL
66 | Annual Report 2023-24
ENVIRONMENT AND SUSTAINABILITY
Incorporating sustainability into the Bank’s operations and business
is an ongoing process that supports our objective of minimising
environmental impact and contributing towards a sustainable future.
The Bank’s ESG Policy emphasises its commitment to
conduct business sustainably and efficiently, thereby
reducing the environmental impact. The Bank’s efforts
in promoting environmental sustainability is in three
strategic areas including sustainable financing, in its
own operations and corporate social responsibility.
SUSTAINABLE FINANCING
The Bank recognises the role a financial institution can
play in driving sustainable socioeconomic development
that benefits all stakeholders. Consideration of ESG
in the Bank’s lending decisions and risk management
framework are important factors and various approaches
have been implemented. The Bank’s sustainable lending
portfolio, defined based on the Bank’s Framework for
Sustainable Financing, continued to grow in fiscal 2024.
At March 31, 2024, the Bank’s outstanding portfolio to
sectors like renewable energy, electric vehicles, green
certified real estate, waste management, water sanitation,
positive impact sectors like lending to weaker section
under priority sector norms was about `685.28 billion.
The Bank’s green financing portfolio grew during
fiscal 2024 and accounted for 28.3% of the total
sustainable lending portfolio.
The various approaches to assessment of ESG risks
include social and environmental evaluation of project
financing proposals, integrating climate change and
ESG issues into the credit evaluation process, establishing
framework for consistent and comprehensive tracking
of sustainable lending by the Bank, and evaluating
climate change impact in operations and business.
Policies and frameworks are periodically reviewed for
relevant amendments.
The Social and Environmental Management Framework
(SEMF) evaluates 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 the lists published
by the International Finance Corporation (IFC) and list
of highly polluting sectors published by the Ministry of
Environment, Forests & Climate Change (MoEFCC) in India,
seeking a declaration from borrowers of compliance with
applicable national environmental guidelines/approvals
for qualifying proposals subject to threshold criteria
defined in the SEMF, and due diligence by an independent
agency for large-ticket project loans identified as per the
criteria defined in the SEMF.
Sustainable Financing
Green financing portfolio was `193.66 billion at March 31, 2024,
of which 50% was for financing renewable energy.
Annual Report 2023-24 | 67
Integrated Report
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Financial Statements
Acknowledging the inherent risks posed by climate
change and ESG issues, these aspects are being
integrated into the credit evaluation process in the Bank.
As part of the credit evaluation process for large
corporate lending proposals, borrower ESG scores from
external agencies, if available, are considered. Additionally,
the Bank has developed specific risk assessment tools
for 16 sectors to gauge the ESG maturity and associated
risks of borrowers with exposures exceeding a certain
threshold. This risk assessment tool has been developed
with a focus on hard-to-abate sectors that are challenging
to transition to low carbon pathways and sectors
with substantial exposure within the Bank’s portfolio.
One of the key elements of the Bank’s ESG policy is
its commitment to responsible lending practices and
fostering a positive impact on the environment and
society. Aligned with this philosophy, the Framework
for Sustainable Financing has been formulated to
provide guidance on green, social, sustainable, and
sustainability-linked lending, outlining the methodology
and associated procedures. The Bank has taken inputs
from the Government of India’s Framework for Sovereign
Green Bonds issued in December 2022 and the RBI’s
guidelines on Framework for Acceptance of Green deposits
issued in April 2023. The Bank has further classification
of proposals into (i) dedicated sustainable lending and
(ii) sustainability-linked lending based on the underlying
characteristics of the transaction. The framework
specifies the eligibility criteria, 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.
Addressing Climate-Related Risks
and Opportunities
Exposure of financial institutions to potential negative
impacts of climate change on operations, assets and
overall financial stability are critical. 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 is also in the process of
understanding biodiversity and nature-related aspects
that could manifest as risks in the Bank’s business.
The Bank has formulated a Climate Risk Management
Framework (CRMF) for integration of climate risk into the
overall risk management framework. CRMF comprises
guidance on assessing impact of climate change on
the Bank’s own operations due to physical risk events.
Additionally, it guides in identifying and analysing
the impact of both physical and transition risks on the
lending portfolio.
The Bank conducts climate scenario analysis to
quantify the impact of climate-related financial risks and
assess the potential impact on capital and provisions
requirement. Climate scenario analysis is performed
to assess the potential impact of physical risks on the
top counterparties of wholesale banking portfolio,
retail lending, and impact of transition risk on the top
counterparties of wholesale banking portfolio. The
output of the exercise has been incorporated in the
Bank’s financial planning as a part of ICAAP.
Physical Risk Assessment
Bank’s Own Operations
Top Counterparties of
Wholesale Banking Portfolio
Retail Portfolio
ENVIRONMENT AND SUSTAINABILITY
68 | Annual Report 2023-24
Key Focus Areas for Addressing Climate Risks
Sustainable Financing
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 and policy makers for
decarbonising businesses and
the economy.
Risk Management
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.
Own Operations
The Bank aims to reduce its
Scope 1 and Scope 2 emissions.
The Bank is in the process of
evaluating Scope 3 emissions
from own operations and
enhancing its disclosure in this
regard. The Bank is working
towards identifying and putting
in place the elements required
to achieve carbon neutrality in
own operations. The Bank has
set a target to achieve carbon
neutrality by fiscal 2032.
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.
ENVIRONMENTAL SENSITIVITY IN
OWN OPERATIONS
The Bank’s efforts in minimising environmental impact
of its activities is driven through sustainable practices in
areas like energy efficiency, green building certification,
sustainable procurement, waste reduction and recycling,
water conservation and reducing paper consumption.
During fiscal 2024, there was progress across these
areas with a focus on decarbonising the Bank’s
operations. Some key efforts during the year included:
•
The proportion of renewable energy within total
energy consumption from the grid and on-site
solar increased from 9% in fiscal 2023 to 35% in
fiscal 2024.
•
The Bank continuously endeavours to align buildings
to Indian Green Building Council (IGBC) standards
and comply with them on an ongoing basis. During
fiscal 2024, 29 new sites with more than half a
million square feet of area were IGBC-certified. Total
32% of the Bank’s premises were IGBC-certified at
March 31, 2024.
•
ICICI Bank has introduced several measures to
enable waste reduction and recycling at its Service
Centre at BKC in Mumbai, Maharashtra. These
include appropriate measures for waste segregation
at the site for suitable treatment according to the
type of waste. The Bank has also advocated the
use of environment-friendly consumables at the
premises with the aim of promoting sustainable
practices. These initiatives led to the Service Centre
getting a rating of ‘Net Zero Waste’ in the category
ENVIRONMENT AND SUSTAINABILITY
Annual Report 2023-24 | 69
Integrated Report
Statutory Reports
Financial Statements
of ‘Net Zero Waste to Landfill (Operations)’ by IGBC
in fiscal 2024.
•
ICICI Bank was certified with ISO 45001:2018,
Occupational Health and Safety Management
Systems, at 18 large offices with cumulative
occupancy of more than 30,000 employees (approx.
21% of total workforce).
•
The Bank has moved to using FSC (Forest
Stewardship Council) certified recycled paper for pre-
print forms at its branches. The Bank is also procuring
BIS ECO-Mark paper that is manufactured through
agro farming. These constituted 59% of the total
paper procured by the Bank in volume terms.
To facilitate the above, engagement with vendors is an
ongoing effort 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.
GHG EMISSIONS IN OWN
OPERATIONS
The adoption of green tariff power resulted in reduction
in the Bank’s Scope 2 emissions by 19.7% year-on-
year during fiscal 2024. The Bank’s total Scope 1 and 2
emissions declined by 15.7% during the year. The practice
of independent assurance of Scope 1 and Scope 2
emissions
continued.
For
fiscal
2024,
reasonable
assurance was conducted by Grant Thornton Bharat LLP
as part of the SEBI mandated Business Responsibility
and Sustainability Report. For fiscal 2023, limited
assurance for the same was undertaken by DNV
Business Assurance India Private Limited and, in fiscal
2022 it was conducted by TUV India Private Limited.
During fiscal 2024, the Bank assessed and has disclosed
additional categories under Scope 3 emissions. These
include capital goods and employee commute, apart from
business travel.
ENVIRONMENT AND SUSTAINABILITY
The Bank advocates the use of environment-friendly consumables at its premises with the aim of promoting sustainable practices.
70 | Annual Report 2023-24
Promoting Environment and Sustainability Through CSR
As part of CSR initiatives, the Bank extensively supports 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 country. ICICI Foundation is also working in villages to reduce their carbon footprint by promoting
adoption of sustainable practices like composting, garbage recycling, efficient cooking, drinking water
solutions, among others.
ENVIRONMENT AND SUSTAINABILITY
The Bank’s GHG emissions in its own operations in fiscal
2024 were:
In ‘000 tCO2e
Fiscal
2022
Fiscal
2023
Fiscal
2024
Scope 11 (A)
26
23
25
Scope 22 (B)
116
126
101
Total (A+B)
142
149
126
Emissions intensity
(in tCO2e4 per ` crore
revenue)
1.36
1.16
0.76
Emissions intensity (in
tCO2e per FTE5 employee)
1.35
1.16
0.90
The Bank is committed to reduce its
emissions in own operations and become
carbon neutral by fiscal 2032.
Footnote:
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 based on expenses on procurement of diesel and applying the lowest diesel price in the country to estimate quantity
of diesel consumed. 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 for Capital goods have been estimated in accordance with the GHG Protocol. For the purpose, EXIOBASE 2019
emission factors have been considered. Scope 3 emissions for business-related travel by employees through modes like aircraft,
train, buses, and cars have been estimated. Emissions from hotel stay during such travel is not included. For the purpose, DEFRA
(Department for Environment, Food and Rural Affairs) 2023 emission factors have been considered. Scope 3 emissions for employee
commuting have been estimated based on an survey conducted. The Average-data method has been used for extrapolating to all
employees. For the purpose, latest India GHG Program emission factors have been considered.
4. tCO2e - Tonnes of carbon dioxide equivalent is a standard unit for counting GHG emissions.
5. FTE: Full Time Equivalent.
Scope 3 Emissions
Scope 33 emissions pertaining to Business travel was 17,735 tCO2e in fiscal 2023. In fiscal 2024, evaluation of the Bank’s
Scope 3 emissions in own operations was expanded to include capital goods and employee commuting, apart from
business travel. Total Scope 3 emissions in fiscal 2024 was 161,250 tCO2e.
Annual Report 2023-24 | 71
Integrated Report
Statutory Reports
Financial Statements
BOARD’S REPORT
Your Directors have pleasure in presenting the Thirtieth Annual Report of ICICI Bank Limited (ICICI Bank/the Bank) along
with the audited financial statements for the year ended March 31, 2024.
FINANCIAL HIGHLIGHTS
The financial performance for fiscal 2024 is summarised in the following table:
` in billion, except percentages
Fiscal 2023
Fiscal 2024
% change
Net interest income and non-interest income
820.12
972.55
18.6%
Operating expenses
328.73
391.33
19.0%
Core operating profit
491.39
581.22
18.3%
Provisions and contingencies (excluding tax)
66.66
36.43
(45.3)%
Profit before tax excluding treasury gains
424.73
544.79
28.3%
Treasury gains
(0.52)
0.09
(117.3)%
Profit before tax
424.21
544.88
28.4%
Tax
105.25
136.00
29.2%
Profit after tax
318.96
408.88
28.2%
` in billion, except percentages
Fiscal 2023
Fiscal 2024
% change
Consolidated profit before tax and minority interest
472.55
615.08
30.2%
Consolidated profit after tax and minority interest
340.37
442.56
30.0%
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 and requirements and the regulations pertaining to the payment of dividend.
The Board of Directors has recommended a dividend of ` 10.00 per equity share for the year ended March 31, 2024.
APPROPRIATIONS
The Bank has appropriated accumulated profit as follows:
` in billion
Fiscal 2023
Fiscal 2024
Profit after tax
318.96
408.88
Profit brought forward
436.71
563.57
Accumulated profit (before appropriations)
755.67
972.45
Appropriations:
To Statutory Reserve, making in all ` 538.00 billion
79.74
102.22
To Special Reserve created and maintained in terms of Section 36(1)(viii) of
the Income Tax Act, 1961, making in all ` 184.70 billion
25.65
30.21
To Capital Reserve, making in all ` 150.75 billion
0.88
0.33
To Investment Fluctuation Reserve, making in all ` 31.69 billion1
1.04
9.93
To Revenue and other reserves, making in all ` 110.33 billion
50.00
-
Dividend paid on equity shares2
34.79
55.99
Balance carried over to balance sheet
563.57
773.77
1 Represents an amount transferred to Investment Fluctuation Reserve (IFR) on net profit on sale of available-for-sale (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.
2 Represents dividend declared for previous financial year and paid in current financial year.
BOARD’S REPORT
72 | Annual Report 2023-24
SHARE CAPITAL
During the year under review, the Bank allotted 39,519,912
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.
PARTICULARS OF LOANS, GUARANTEES
OR INVESTMENTS
Pursuant to Section 186(11) of the Companies Act,
2013, the provisions of Section 186 of the Companies
Act, 2013, except sub-section (1), do not apply to a
loan made, guarantee given or security provided by a
banking company in the ordinary course of business.
The particulars of investments made by the Bank are
disclosed in Schedule 8 of the financial statements as
per the applicable provisions of the Banking Regulation
Act, 1949.
SUBSIDIARY, ASSOCIATE AND JOINT
VENTURE COMPANIES
During the year under review, ICICI Lombard General
Insurance Company Limited ceased to be an associate
and became a subsidiary of the Bank with effect from
February 29, 2024. I-Process Services (India) Private
Limited ceased to be an associate and became a subsidiary
of the Bank with effect from March 20, 2024 and a wholly-
owned subsidiary of the Bank with effect from March 22,
2024. There were no entities which became or ceased to
be joint venture of the Bank during fiscal 2024.
As at March 31, 2024, your Bank had following subsidiaries
(including step down subsidiaries) (17) and associate (8)
companies:
Name of the subsidiary company
% of shares held
ICICI Bank UK PLC
100
ICICI Bank Canada
100
ICICI Securities Limited
74.73
ICICI Securities Holdings, Inc.1
100
ICICI Securities, Inc.2
100
ICICI Securities Primary Dealership
Limited
100
ICICI Venture Funds Management
Company Limited
100
ICICI Home Finance Company
Limited
100
ICICI Trusteeship Services Limited
100
Name of the subsidiary company
% of shares held
ICICI Investment Management
Company Limited
100
ICICI International Limited
100
ICICI Prudential Pension Funds
Management Company Limited3
100
ICICI Prudential Life Insurance
Company Limited
51.20
ICICI Lombard General Insurance
Company Limited
51.27
ICICI Prudential Asset Management
Company Limited4
51.00
ICICI Prudential Trust Limited4
50.80
I-Process Services (India) Private
Limited
100
1 ICICI Securities Holdings, Inc. is a wholly owned subsidiary of
ICICI Securities Limited.
2 ICICI Securities, Inc. is a wholly owned subsidiary of ICICI
Securities Holdings, Inc.
3 ICICI Prudential Pension Funds Management Company Limited
is a wholly owned subsidiary of ICICI Prudential Life Insurance
Company Limited.
4 The entity is a joint venture company, however, it is considered
as a subsidiary company in accordance with the provisions of
the Companies Act, 2013.
Name of the associate company
% of shares held
NIIT Institute of Finance Banking
and Insurance Training Limited
18.79
ICICI Merchant Services Private
Limited
19.01
India Infradebt Limited
42.33
Arteria Technologies Private Limited
19.98
Rajasthan Asset Management
Company Private Limited1
24.30
OTC Exchange of India1
20.00
Falcon Tyres Limited1
26.39
Fino Paytech Limited1, 2
25.10
1 These companies are not considered as associates in the
financial statements, in accordance with the provisions of
Accounting Standard 23 on ‘Accounting for Investments in
Associates in Consolidated Financial Statements’.
2 The entity is considered as an associate under the Companies
Act, 2013, subsequent to ICICI Lombard General Insurance
Company Limited becoming a subsidiary of the Bank with effect
from February 29, 2024.
BOARD’S REPORT
Annual Report 2023-24 | 73
Integrated Report
Statutory Reports
Financial Statements
HIGHLIGHTS OF PERFORMANCE OF
SUBSIDIARIES, ASSOCIATES AND JOINT
VENTURE COMPANIES AND THEIR
CONTRIBUTION TO THE OVERALL
PERFORMANCE OF THE COMPANY
The performance of subsidiaries and associates and
their contribution to the overall performance of the Bank
as on March 31, 2024 is given in “Consolidated Financial
Statements of ICICI Bank Limited - Schedule 18 - Note
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 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.
SCHEME OF ARRANGEMENT
On June 29, 2023, the Board of Directors of the Bank
and its broking subsidiary, ICICI Securities Limited (ICICI
Securities) approved a scheme for delisting of equity
shares of ICICI Securities, by issuing equity shares of the
Bank to the public shareholders of ICICI Securities (in the
swap ratio of 67:100), in lieu of cancellation of their equity
shares in ICICI Securities, thereby making ICICI Securities
a wholly-owned subsidiary of the Bank, under Regulation
37 of the Securities and Exchange Board of India (Delisting
of Equity Shares) Regulations, 2021. Pursuant to receipt of
requisite regulatory approvals and the order of the Hon’ble
National Company Law Tribunals, meetings of the equity
shareholders of the Bank and ICICI Securities were held
on March 27, 2024, wherein the proposed scheme was
approved by the requisite majority of shareholders. Certain
shareholders of ICICI Securities have filed objections to the
scheme and the scheme is currently pending for approval
of the Hon’ble National Company Law Tribunals. Securities
and Exchange Board of India (SEBI) has, through its letter
dated June 6, 2024, issued administrative warning to the
Bank on the outreach undertaken by the Bank regarding
the scheme of arrangement. The Bank is in the process
of complying with the requirements mentioned in the
administrative warning.
DIRECTORS AND OTHER KEY MANAGERIAL
PERSONNEL
Changes in the composition of the Board of
Directors and other Key Managerial Personnel
(KMP)
The Board at its meeting held on May 28, 2023 and the
Members at the AGM held on August 30, 2023 approved
the following:
(a) 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.
(b) 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.
(c)
Re-appointment of S. Madhavan as an Independent
Director of the Bank for a second term commencing
from April 14, 2024 to April 13, 2027.
The Board also at its meeting held on May 28, 2023,
based on the recommendation of the Board Governance,
BOARD’S REPORT
74 | Annual Report 2023-24
Remuneration
&
Nomination
Committee
(BGRNC),
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 Reserve Bank of India (RBI) approval.
The Board noted that this renewed term of two years
is within the five years term as previously approved by
the shareholders. RBI vide its letter dated December 20,
2023, communicated its approval for the re-appointment
of Sandeep Batra as Executive Director of the Bank with
effect from December 23, 2023 till December 22, 2025.
The Members at the last AGM held on August 30, 2023
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 approval of RBI. RBI
vide its letter dated September 11, 2023 approved the
re‑appointment of Sandeep Bakhshi as Managing Director
& CEO of the Bank with effect from October 4, 2023 to
October 3, 2026.
The Board at its meeting on November 24, 2023, based
on the recommendation of BGRNC, approved the
appointment of Ajay Kumar Gupta as an Additional
Director and whole-time Director (designated as
Executive Director) with effect from November 27, 2023
or the date of approval from RBI, whichever is later, for
a period till November 26, 2026. Pursuant to approval
granted by RBI, Ajay Kumar Gupta was appointed as an
Executive Director on the Board effective March 15, 2024
till November 26, 2026. The Members through Postal
Ballot on May 14, 2024 approved the appointment of
Ajay Kumar Gupta as a Director and Whole-time Director
(designated as Executive Director) with effect from
March 15, 2024 till November 26, 2026.
The Board at its meeting held on February 15-17, 2024,
based on the recommendation of BGRNC, approved the
appointment of Pradeep Kumar Sinha as an Additional
(Independent) Director, for a period of five years from
February 17, 2024, subject to the approval of Members. The
Board at the said meeting, based on the recommendation
of BGRNC, also approved the appointment of Pradeep
Kumar Sinha as the Non-executive Part-time Chairman
with effect from July 1, 2024 or the date of approval from
RBI, whichever is later, in the vacancy that would be
caused by the retirement of Girish Chandra Chaturvedi.
The Members through Postal Ballot on May 14, 2024
approved the appointment of Pradeep Kumar Sinha as
an Independent Director for a term of five consecutive
years commencing February 17, 2024 to February 16,
2029. RBI vide its letter dated May 24, 2024, approved
the appointment of Pradeep Kumar Sinha as Part-time
Chairman of the Bank for a period of three years with
effect from July 1, 2024.
The Board at its meeting held on June 29, 2024, based on
the recommendation of BGRNC, approved the appointment
of Rohit Bhasin as an Additional (Independent) Director
for a period of five years, with effect from July 26, 2024.
His appointment is being proposed in the Notice of the
forthcoming AGM through item no. 7.
The Board at its meeting held on June 29, 2024,
based on the recommendation of BGRNC, approved
the appointment of Punit Sood as an Additional
(Independent) Director for a period of five years, with
effect from October 1, 2024. The approval of the Members
for his appointment will be sought through Postal Ballot.
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 & Chief Executive
Officer 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 Anup Bagchi.
The Board at its meeting held on March 16, 2023,
based on the recommendation of 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.
As on the date of this report, in terms of Section 203(1)
of the Companies Act, 2013, Sandeep Bakhshi, Managing
Director & CEO, Sandeep Batra, Executive Director, Rakesh
Jha, Executive Director, Ajay Kumar Gupta, Executive
Director, Anindya Banerjee, Group Chief Financial Officer
and Prachiti 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
BOARD’S REPORT
Annual Report 2023-24 | 75
Integrated Report
Statutory Reports
Financial Statements
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 27, 2024. In the opinion of
the Board, the Independent Directors possess the requisite
integrity, experience, expertise and proficiency required
under all applicable laws and are independent of the
Management.
Retirement by rotation
In terms of Section 152 of the Companies Act, 2013,
Rakesh Jha would retire by rotation at the forthcoming
AGM and is eligible for re-appointment. Rakesh Jha has
offered himself for re-appointment.
AUDITORS
Statutory Auditors
At the AGM held on August 30, 2023, 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) were re-appointed as joint statutory auditors to hold
office from the conclusion of the Twenty-Ninth AGM till the
conclusion of the Thirtieth AGM of the Bank.
M S K A & Associates and KKC & Associates LLP have
been the joint statutory auditors of the Bank for three
consecutive years, which is the maximum term for
statutory auditors of banking companies as per the
guidelines issued by RBI. Hence they would be retiring
at the conclusion of the forthcoming AGM. The Audit
Committee and the Board of Directors have placed on
record their appreciation for the professional services
rendered by M S K A & Associates and KKC & Associates
LLP during their association with the Bank as its auditors.
There are no qualifications, reservation or adverse remarks
made by the joint statutory auditors in the audit report.
As recommended by the Audit Committee, the Board
has proposed the appointment of M/s. B S R & Co. LLP,
Chartered Accountants and M/s. C N K & Associates LLP,
Chartered Accountants as joint statutory auditors. Their
appointment has been approved by RBI on May 15, 2024.
The appointment of the auditors is being proposed to the
Members in the Notice of the forthcoming AGM through
item nos. 4 and 5.
Secretarial Auditors
Pursuant to the provisions of Section 204 of the
Companies Act, 2013 and the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014,
the Board at its meeting held on June 29, 2023 appointed
M/s. Alwyn Jay & Co., a firm of Company Secretaries in
Practice to undertake the Secretarial Audit of the Bank
for fiscal 2024. 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 2024
is available on the website of the Bank at https://www.
icicibank.com/about-us/disclosures-to-stock-exchanges
and on the website 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.
The Board at its meeting held on June 29, 2024, based
on the recommendation of Audit Committee, approved
the appointment of M/s. Alwyn Jay & Co. to undertake the
Secretarial Audit of the Bank for fiscal 2025.
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.
BOARD’S REPORT
76 | Annual Report 2023-24
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 2024.
RELATED PARTY TRANSACTIONS
The Bank has a Board-approved Group Arm’s Length Policy
which requires transactions with the group companies to
be at an arm’s length. All the related party transactions
between the Bank and its related parties, entered during
the year ended March 31, 2024, were on arm’s length
basis and were in the ordinary course of business.
The details of material related party transactions at an
aggregate level for the year ended March 31, 2024 are
given in Annexure B.
All related party transactions as required under Accounting
Standard 18 are reported in note no. 47 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 policy on Related Party
Transactions, which has been hosted 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.
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. 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 2024 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 in its Annual Report
since fiscal 2019. For accessing the Report for fiscal 2024,
please refer to the Integrated Report section of the Annual
Report 2023-24.
RISK MANAGEMENT FRAMEWORK
The Bank’s risk management framework is based on
a clear understanding of various risks, disciplined risk
assessment and measurement procedures and continuous
monitoring. The 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 (ERM) 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 framework, the
proceedings of Group Risk Management Committee
and the activities of the Asset Liability Management
Committee. The Committee reviews the level and
direction of major risks pertaining to credit, market,
liquidity,
operational,
reputation,
technology,
BOARD’S REPORT
Annual Report 2023-24 | 77
Integrated Report
Statutory Reports
Financial Statements
information security, compliance, group and capital
at risk as a part of the risk dashboard. 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.
•
The Group Risk Management Committee (GRMC)
oversees the group related risk management
activities. GRMC inter alia, defines the frequency and
framework for review of risk profile of group entities.
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 Group Chief
Risk Officer (GCRO) reports to the Risk Committee
constituted by the Board which reviews risk management
policies of the Bank. The GCRO, for administrative
purposes, reports to an Executive Director of the Bank. The
above mentioned groups are independent of all business
operations and co-ordinate with representatives of the
business units to implement the Bank’s risk management
policies and methodologies.
The Internal Audit Group acts independently and is
responsible for evaluating and providing 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: 133
(b) number of complaints disposed off during the
financial year: 133
(c) number of complaints pending1 at end of the financial
year: Nil
1 All complaints received during fiscal 2024 have been closed
within the applicable turnaround time (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, 2024, Independent
BOARD’S REPORT
78 | Annual Report 2023-24
Directors constituted a majority on most of the committees
and also chaired most of the committees.
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 material unlisted
subsidiary. ICICI Prudential Life Insurance Company
Limited (ICICI Life) 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 Life are as follows:
Date of
incorporation
July 20, 2000
Place of
incorporation
Mumbai
Statutory
Auditors
B S R & Co. LLP1
Chartered Accountants
Firm Registration No. 101248W/
W-100022
Date of Re-appointment: July 17, 2019
Walker Chandiok & Co. LLP
Chartered Accountants
Firm Registration No. 001076N/
N500013
Date of Re-appointment: June 25, 2021
1 B S R & Co. LLP completed ten years and retired as the joint
statutory auditor of ICICI Life at the conclusion of 24th AGM
of ICICI Life held on June 28, 2024. At the same AGM, M. P.
Chitale & Co. (Firm Registration No. 101851) have been
appointed as one of the joint statutory auditors of ICICI Life
to hold office from the conclusion of 24th AGM of ICICI Life
till the conclusion of 28th AGM of ICICI Life.
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. 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
BOARD’S REPORT
Annual Report 2023-24 | 79
Integrated Report
Statutory Reports
Financial Statements
resulting in financial or reputation loss and misuse
of office or suspected or actual fraud. The policy
provides for a mechanism to report such concerns
to the Audit Committee through specified channels.
The policy has been periodically communicated
to the employees and also posted on the Bank’s
intranet. 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
` 40,000.00 million through issue of senior unsecured
redeemable long term bonds in the nature of
debentures, in tranches, on private placement basis.
There is no deviation in utilisation of the funds.
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, 2024 are given in
the following table:
Nature of service
Amount in `1
Audit
59,400,000
Certification and other audit
related services
2,645,000
Total
62,045,000
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.
Credit Rating as on March 31, 2024
Foreign currency denominated instruments issued by
the Bank
Instrument type
Moody's
S&P
Senior unsecured
medium term notes
Baa3
BBB-
Certificate of Deposits
P-3
-
Rupee denominated instruments issued by
the Bank
Instrument type
CARE
ICRA
CRISIL
Tier II bonds (Basel III)
CARE
AAA
[ICRA]
AAA
-
Additional Tier 1 bonds
(Basel III)
CARE
AA+
[ICRA]
AA+
CRISIL
AA+
Unsecured redeemable
bonds
CARE
AAA
[ICRA]
AAA
CRISIL
AAA
Lower Tier II Bond
CARE
AAA
[ICRA]
AAA
-
Long term bonds issued
by erstwhile ICICI Limited
CARE
AAA
[ICRA]
AAA
CRISIL
AAA
Certificate of Deposits
CARE
A1+
[ICRA]
A1+
-
Fixed deposits
CARE
AAA
[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
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.
BOARD’S REPORT
80 | Annual Report 2023-24
The Certificate of Company Secretary in practice is
annexed herewith as Annexure C.
Board of Directors
ICICI Bank has a broad-based Board of Directors,
constituted in compliance with the Banking Regulation
Act, 1949, the Companies Act, 2013 and the 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, 2024 consisted of
thirteen Directors, out of which nine were Independent
Directors and four were Executive Directors.
There were ten Meetings of the Board during the year
- April 22, May 28, June 29, July 22, September 15,
October 21, November 24 and December 20 in 2023
and January 20 and February 15-17 in 2024.
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, 2024 are set out in the following
table:
Name of Director
Board
Meetings
attended
during
the year
Attendance
at last AGM
(August 30,
2023)
Number of
directorships
Number
of other
committee
member-
ships 1
Directorships in other listed entity
and category of directorship
of other
Indian
public
limited
companies
of other
Indian
companies
Independent Directors
Girish Chandra
Chaturvedi,
(Chairman upto
June 30, 2024)
(DIN: 00110996)
10/10
Present
-
-
-
-
Pradeep Kumar Sinha
(Director w.e.f.
February 17, 2024,
Chairman w.e.f. July 1,
2024)
(DIN: 00145126)
-
N.A.
1
1
-
Bharti Airtel Limited (ID)
Neelam Dhawan
(DIN: 00871445)
10/10
Present
3
2
4(2)
• Hindustan Unilever Limited (ID)
• Yatra Online Limited (NED)
Uday Chitale
(DIN: 00043268)
10/10
Present
1
1
1(0)
ICICI Lombard General Insurance
Company Limited (ID)
Radhakrishnan Nair
(DIN: 07225354)
10/10
Present
6
2
7(2)
• ICICI Prudential Life Insurance
Company Limited (ID)
• ICICI Securities Primary Dealership
Limited (ID)
• Geojit Financial Services Limited (ID)
• Inditrade Capital Limited (ID)
BOARD’S REPORT
Annual Report 2023-24 | 81
Integrated Report
Statutory Reports
Financial Statements
Name of Director
Board
Meetings
attended
during
the year
Attendance
at last AGM
(August 30,
2023)
Number of
directorships
Number
of other
committee
member-
ships 1
Directorships in other listed entity
and category of directorship
of other
Indian
public
limited
companies
of other
Indian
companies
Hari L. Mundra
(DIN: 00287029)
10/10
Present
1
-
1(1)
-
B. Sriram
(DIN: 02993708)
10/10
Present
5
1
6(1)
• Nippon Life India Asset
Management Limited (ID)
• TVS Motor Company Limited (ID)
• TVS Supply Chain Solutions Limited
(ID)
S. Madhavan
(DIN: 06451889)
10/10
Present
4
3
7(3)
• Sterlite Technologies Limited (ID)
• HCL Technologies Limited (ID)
• Procter & Gamble Health Limited (ID)
• Eicher Motors Limited (ID)
Vibha Paul Rishi
(DIN: 05180796)
10/10
Present
5
-
6(3)
• ICICI Prudential Life Insurance
Company Limited (ID)
• Asian Paints Limited (ID)
• Tata Chemicals Limited (ID)
• Piramal Pharma Limited (ID)
Executive Directors
Sandeep Bakhshi,
Managing Director &
Chief Executive Officer
(DIN: 00109206)
10/10
Present
-
-
-
-
Sandeep Batra
(DIN: 03620913)
10/10
Present
4
-
3(0)
• ICICI Lombard General Insurance
Company Limited (NED)
• ICICI Prudential Life Insurance
Company Limited (NED)
Rakesh Jha
(DIN: 00042075)
9/10
Present
4
-
1(1)
• ICICI Home Finance Company
Limited (NED)
• ICICI Lombard General Insurance
Company Limited (NED)
• ICICI Securities Limited (NED)
Ajay Kumar Gupta
(w.e.f. March 15, 2024)
(DIN: 07580795)
-
N.A.
-
-
-
-
Independent Director (ID)
Non-executive Director (NED)
One meeting of the Board was held and attended by Anup Bagchi (DIN:00105962) during his tenure on the Board of the Bank.
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.
BOARD’S REPORT
82 | Annual Report 2023-24
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 directors of the Bank is detailed as under:
Name of Director
Areas of expertise
Girish Chandra Chaturvedi
Agriculture and rural economy, Banking, Co-operation, Economics, Finance, Small Scale
Industry, Human Resources, Risk Management, Business Management, Insurance
Pradeep Kumar Sinha
Agriculture and rural economy, Banking, Co-operation, Economics, Finance, Small Scale
Industry, Payment and Settlement Systems, Human Resources, Risk Management,
Business Management, Energy and Infrastructure, Urban Development
Neelam Dhawan
Banking, Information Technology, Human Resources, Business Management, Corporate
Governance and Business Strategy
Uday Chitale
Accountancy, Banking, Finance, Alternate Dispute Resolution (ADR), Auditing &
Assurance, Securities
Radhakrishnan Nair
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
Hari L. Mundra
Accountancy, Banking, Economics, Finance, Law, Human Resources, Risk Management,
Business Management, Business and Financial Strategy, Treasury, M&A, Business
Restructuring and Taxation
B. Sriram
Banking, Finance, Small Scale Industry, Information Technology, Payment and Settlement
Systems, Credit and Risk, Treasury, Insolvency & Bankruptcy
S. Madhavan
Accountancy, Banking, Economics, Finance, Law, Information Technology, Human
Resources, Risk Management, Business Management, Strategy, Business Operations,
Governance, Taxation
Vibha Paul Rishi
Consumer Insight & Marketing, Strategy, Accountancy, Agriculture and rural economy,
Economics, Finance, Information Technology, Human Resources, Risk Management,
Business Management
Rohit Bhasin
(Director w.e.f. July 26,
2024)
Accountancy, Banking, Finance, Human Resources, Risk Management and Business
Management
Sandeep Bakhshi
Banking, Finance, Business Management, Insurance
Sandeep Batra
Accountancy, Banking, Finance, Law, Information Technology, Human Resources, Risk
Management, Business Management, Insurance, Securities, Governance, Economics
Rakesh Jha
Banking, Business Management, Risk Management, Finance, Accountancy, Economics
and Information Technology
Ajay Kumar Gupta
Banking, Business Management, Risk Management, Finance, Accountancy, Small Scale
Industry, Payment and Settlement System and Information Technology
BOARD’S REPORT
Annual Report 2023-24 | 83
Integrated Report
Statutory Reports
Financial Statements
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 2024 are set out below:
II.
Audit Committee
Terms of Reference
The Audit Committee provides direction to the audit
function and monitors the quality of internal and
statutory audit. The responsibilities of the Audit
Committee include examining the financial statements
and auditors’ report and overseeing the financial
reporting process to ensure fairness, sufficiency
and credibility of financial statements, review of the
quarterly and annual financial statements before
submission to the Board, review of management’s
discussion
&
analysis,
recommendation
of
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 Mechanism,
adequacy of internal control systems and the internal
audit 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
impact of schemes involving merger/demerger/
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 sixteen meetings of the Committee
during the year - April 15, April 21, June 29, July 7,
July 19, July 21, August 24, October 18, October 19,
October 20, November 20 and December 14 in 2023
and January 17, January 19, February 24 and
March 26 in 2024. The details of the composition of
BOARD’S REPORT
84 | Annual Report 2023-24
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
Uday Chitale, Chairman
16/16
S. Madhavan
16/16
Radhakrishnan Nair
16/16
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 seven meetings of the Committee
during the year - April 21, 2023, May 28, 2023,
July 20, 2023, October 20, 2023, November 23, 2023,
January 19, 2024 and February 17, 2024. 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
7/7
Girish Chandra Chaturvedi
(upto June 30, 2024)
7/7
Pradeep Kumar Sinha
(w.e.f. February 23, 2024)
-
B. Sriram
7/7
Policy/Criteria for Directors’ Appointment
The Bank with the approval of its BGRNC 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.
BOARD’S REPORT
Annual Report 2023-24 | 85
Integrated Report
Statutory Reports
Financial Statements
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
Non-executive Part-time Chairman) and Part C
relates to compensation to Non-executive Part-time
Chairman. The Compensation Policy is available on
the website of the Bank at https://www.icicibank.
com/about-us/other-policies.
The
remuneration
payable
to
Non-executive/
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)
consists of 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 Non-executive Part-time Chairman and
the Government Nominee Director) (NEDs) are also
entitled to a fixed remuneration.
Considering the crucial role of NEDs in efficient
functioning of bank Boards and its various committees
and in order to enable the banks to sufficiently attract
qualified competent individuals on their Board, RBI
had, vide its circular dated February 9, 2024, revised
the ceiling for fixed remuneration to NEDs from
` 2,000,000 per annum to an amount not exceeding
` 3,000,000 per annum, as may be decided by the
Board of banks basis suitable criteria duly identified
by it.
The Board at its meeting held on February 15‑17, 2024
and the Members through Postal Ballot on May 14,
2024 approved the increase in fixed remuneration
for Non-executive Directors (other than part-time
Chairman and Government Nominee Director) with
effect from February 10, 2024, from ` 2,000,000 per
annum to ` 3,000,000 per annum.
For the Non-executive Part-time 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.
The Board at its meeting held on February 15-17, 2024
and the Members through Postal Ballot on May 14,
2024 approved the increase in fixed remuneration
for the Non-executive Part-time Chairman from
` 3,500,000 per annum to ` 5,000,000 per annum
with effect from April 1, 2024. The increase in fixed
remuneration has been approved by RBI.
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, on the recommendation of BGRNC and
approval of 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 Board level
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
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 management and the Board that is
necessary for the Board to effectively and reasonably
perform their duties.
BOARD’S REPORT
86 | Annual Report 2023-24
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 2023. The
performance evaluation process for fiscal 2024 was
conducted through a comprehensive survey using
an electronic survey platform 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. 52 of Schedule 18 of the
financial statements.
Details of Remuneration paid to Executive
Directors
The BGRNC determines and recommends to the Board
the amount of remuneration, including performance
bonus and perquisites, payable to Managing Director
& CEO and Wholetime Directors.
The following table sets out the details of remuneration (including perquisites and retiral benefits) paid in fiscal 2024:
Details of Remuneration (`)
Sandeep
Bakhshi
Anup
Bagchi1
Sandeep
Batra
Rakesh
Jha
Ajay Kumar
Gupta2
2023-24
2023-24
2023-24
2023-24
2023-24
Basic
34,647,600
2,472,480
29,669,760
29,669,760
11,969,574
Performance bonus paid in fiscal 20233
28,480,666
24,844,962
24,844,962
21,291,253
12,521,333
Allowances and perquisites4
29,483,876
2,475,957
26,189,059
26,970,952
21,362,459
Contribution to provident fund
4,157,712
296,698
3,560,376
3,560,376
1,436,353
Contribution to superannuation fund
-
-
-
-
-
Contribution to gratuity fund
2,886,145
205,958
2,471,491
2,471,491
997,066
Stock options5 (Number)
299,100
231,000
231,000
231,000
113,700
1 Anup Bagchi's last working day with the Bank was April 30, 2023. The above remuneration pertains to his period in the Bank.
2 Ajay Kumar Gupta was appointed as Executive Director effective March 15, 2024. The above remuneration is his full year earned
salary.
3 Bonus amounts earned for fiscal 2023 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 2023. 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 2024.
4 Allowances and perquisites exclude perquisites of previous years stock options exercised during fiscal 2024
5 Represents options granted during fiscal 2024 pertaining to fiscal 2023.
BOARD’S REPORT
Annual Report 2023-24 | 87
Integrated Report
Statutory Reports
Financial 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
in the range of three to five years. The appointment
is 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.
During fiscal 2024, Sandeep Bakhshi exercised
certain stock options of ICICI Life, subsidiary of the
Bank which were granted to him in the earlier year(s)
when he was associated with ICICI Life. 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. 52 of Schedule 18 of the financial statements.
Details of Remuneration to Non-executive
Directors
The Bank pays sitting fee of ` 100,000 to Non-
executive Directors for attending each meeting of
the Board and Board level committees viz. Audit
Committee, Board Governance, Remuneration &
Nomination Committee, Credit Committee, Corporate
Social Responsibility Committee, Customer Service
Committee, Fraud Monitoring Committee, Information
Technology
Strategy
Committee,
Stakeholders
Relationship Committee, Risk Committee and Review
Committee for identification of Wilful Defaulters/Non
Co-operative Borrowers.
Information on the total remuneration paid to each
Non-executive Director during fiscal 2024 is set out in
the following table:
Amount (`)
Name of Director
Sitting Fees Remuneration1
Girish Chandra
Chaturvedi
3,000,000
3,500,000
Pradeep Kumar
Sinha2
100,000
241,758
Hari L. Mundra
4,800,000
2,000,000
S. Madhavan
4,100,000
2,000,000
Neelam Dhawan
2,900,000
2,000,000
Radhakrishnan Nair
3,800,000
2,000,000
B. Sriram
5,400,000
2,000,000
Uday Chitale
3,600,000
2,000,000
Vibha Paul Rishi
2,700,000
2,000,000
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 Board at its
meeting held on February 15-17, 2024 and the Members
through Postal Ballot on May 14, 2024 approved the increase
in fixed remuneration payable to Non-executive Directors
(excluding Part-time Chairman and Director nominated
by Government of India) from ` 2,000,000 per annum to
` 3,000,000 per annum with effect from February 10, 2024.
The differential remuneration for the period with effect from
February 10, 2024 till March 31, 2024 has been paid to the
Non-executive Directors (other than Part-time Chairman) on
proportionate basis in fiscal 2025.
2 Appointed as an Independent Director with effect from
February 17, 2024.
BOARD’S REPORT
88 | Annual Report 2023-24
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
11.05:1
Pradeep Kumar Sinha2
0.58:1
Hari L. Mundra
11.56:1
S. Madhavan
10.37:1
Neelam Dhawan
8.33:1
Radhakrishnan Nair
9.86:1
B. Sriram
12.58:1
Uday Chitale
9.52:1
Vibha Paul Rishi
7.99:1
Executive Directors
Sandeep Bakhshi,
Managing Director & CEO
120:1
Sandeep Batra
104:1
Rakesh Jha
104:1
Ajay Kumar Gupta3
104:1
(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
4%
Sandeep Batra,
Executive Director
4%
Rakesh Jha,
Executive Director
4%
Ajay Kumar Gupta,
Executive Director4
10%
Anindya Banerjee,
Group Chief Financial Officer
5%
Prachiti Lalingkar,
Company Secretary
30%
(iii) The percentage increase in the median
remuneration of employees in the
financial year;
The
percentage
increase
in
the
median
remuneration of employees in the financial year
was around 12.6%.
(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 141,009. Out of this, the employees
on permanent rolls of the Bank are 135,900
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 increase made in
the salaries of total employees other than the
Key Managerial Personnel for fiscal 2024 was
around 13%, while the average increase in the
remuneration of the Key Managerial Personnel
was in the range of 4%- 30%4.
(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 ratio of remuneration as stated in point (i)
above is calculated after considering sitting fees and
fixed remuneration paid during fiscal 2024. The Board
at its meeting held on February 15-17, 2024 and the
Members through Postal Ballot on May 14, 2024
approved the increase in fixed remuneration payable
to Non-executive Directors (excluding Part-time
Chairman and Director nominated by Government
of India) from ` 2,000,000 per annum to ` 3,000,000
per annum with effect from February 10, 2024,
subject to the approval of Members. The differential
remuneration for the period with effect from
February 10, 2024 till March 31, 2024 has been paid
BOARD’S REPORT
Annual Report 2023-24 | 89
Integrated Report
Statutory Reports
Financial Statements
to the Non-executive Directors (other than Part-time
Chairman) in fiscal 2025.
2 Director with effect from February 17, 2024.
3 The ratios are computed on annualized remuneration
in the capacity of Executive Director, which was
effective March 15, 2024 for Ajay Kumar Gupta.
4 Ajay Kumar Gupta was appointed as Executive
Director of the Bank effective March 15, 2024 with
the salary increase of 108%.
5 Anup Bagchi’s last working day with the Bank
was April 30, 2023. The ratio of his annualized
remuneration to the median remuneration of the
employees was 104:1 and the percentage increase in
his remuneration was 4%.
Particulars of Senior Management Personnel
(SMP)
(a) Changes in SMP during fiscal 2024
Atul Kumar, Divyesh Shah, Manish Maheshwari,
Pankaj Kohli, Prachiti Lalingkar, Pramod Dubey,
Rohit Poddar, Shamala Potnis, Swanandi
Phalnikar and Vikas Singhvi were included in
the list of senior management based on the
eligibility criteria approved by the Board. Rajesh
Nair, Saurabh Singh, Sudipta Roy, Ranganath
Athreya, Vandana Jogani and Vishal Batra, were
excluded from the list of senior management
either owing to their retirement/resignation from
the Bank or changes in the organization structure.
Ajay Kumar Gupta was a senior management
personnel for a period till March 14, 2024.
(b) List of SMP as on March 31, 2024
Anindya Banerjee (Group Chief Financial Officer),
Anish Madhavan (Group Chief Internal Auditor
and Head Financial Crime Prevention), Anubhuti
Sanghai (Head - Transaction Banking, Supply
Chain Finance and Retail Trade Products), Anuj
Bhargava (Head - Global Clients Group, Multi
National Clients, Public Sector Undertaking and
Advisory), Atul Arora (Head - Assets, Priority
Sector Lending and Debt Service Management
Group), Atul Kumar (Head - Payment Operations
Group), Balaji V.V. (Chief Technology Officer),
Bijith Bhaskar (Head - Cards, Payment Solutions,
E-Commerce Ecosystem, Merchant Ecosystem
and Consumer Finance), Divyesh Shah (Head
- Operations Innovation, Digitisation, Analytics
and
Customer
Relationship
Management),
G Srinivas (Chief Risk Officer), Hitesh Sachdev
(Head – Start Up Engagement and Investments),
Manish Maheshwari (Head - Treasury &
Securities Services Group), Nilanjan Sinha
(General Counsel), Pankaj Kohli (Head - Business
Credit and Credit Policy – Business Banking),
Partha Dey (Head - Services Sector; Retail
Structured Finance and Financial Institutions
Group), Prachiti Lalingkar (Company Secretary),
Pramod Dubey (Head - Assets & Liabilities
Operations), Pranav Mishra (Head - Customer
360, Deposits Products, Business & Service
Centre Processes & Compliance, Marketing &
Alliances and ATM), Prasanna Balachander
(Group Head - Global Markets - Sales, Trading
and Research), Pravendra Shah (Chief of Internal
Vigilance), Rajesh Iyer (Head - Private Banking),
Rajesh Rai (Business Head - Retail and Business
Banking), Rohit Poddar (Head – Retail Credit &
Credit Policy - Retail Banking and Mortgage
Valuation Group), Sanjay Singhvi (Head - Trust
Association Societies & Clubs and Government
Banking Group), Shamala Potnis (Head - Central
Reconciliation), Sidharatha Mishra (Head -
Wealth, Digital Channels & Partnerships and
Customer Service), Sriram Hariharan (Head -
International Banking Group, Global Remittances
and NRI Services), Subir Saha (Group Chief
Compliance Officer), Sujit Ganguli (Head -
Corporate Brand and Communications), Sumit
Sanghai (Head - Large Clients Group, Capital
Markets, Construction Realty & Funding Group,
Asset Evaluation & Monetization, Custody and
Financial Sponsors), Swanandi Phalnikar (Head
- Trade Finance Operations Group), T K Srirang
(Group Chief Human Resources Officer and Head
Infrastructure Management & Services Group),
Vikas Agarwal (Head – Financial Sponsors
and Syndications), Vikas Singhvi (Head - Retail
Remittance and International Operations), Vyom
Upadhyay (Head - Data Science and Analytics).
IV. Corporate Social Responsibility Committee
Terms of Reference
The functions of the Committee include review of
corporate social responsibility (CSR) initiatives
undertaken by the ICICI Group and the ICICI
Foundation for Inclusive Growth, formulation and
recommendation to the Board of a CSR Policy
BOARD’S REPORT
90 | Annual Report 2023-24
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, 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 CSR initiatives and projects and
schedule of implementation, 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 20, 2023, July 21, 2023, October 19, 2023
and January 18, 2024. 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
Girish Chandra Chaturvedi,
Chairman
(upto June 30, 2024)
4/4
Pradeep Kumar Sinha
(w.e.f. February 23, 2024)
-
Radhakrishnan Nair
4/4
Uday Chitale
4/4
Vibha Paul Rishi
4/4
Anup Bagchi
(upto April 30, 2023)
1/1
Rakesh Jha
(w.e.f. May 1, 2023)
3/3
The Board at its meeting held on June 29, 2024
reconstituted the Committee and appointed Pradeep
Kumar Sinha as the Chairman of the Committee with
effect from July 1, 2024.
Details about the policy developed and
implemented by the Company on CSR
initiatives taken during the year
ICICI Bank has a long-standing commitment towards
socio-economic development through CSR initiatives.
The CSR Policy sets the framework guiding the CSR
activities to be undertaken. The CSR activities are
primarily in the areas of healthcare, environment
and ecology, sustainable livelihoods and skilling,
social interventions including financial literacy, social
awareness and other activities as may be permitted
under applicable law. The activities are implemented
either directly or through the ICICI Foundation for
Inclusive Growth.
The CSR policy was reviewed and updated in
June 2024 to facilitate the Bank’s endeavour to take
up multi-year CSR projects to make sustainable
impact. 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 D.
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-one
meetings
of
the
Committee during the year - April 11, April 27,
May 9, May 17, June 9, June 23, June 30, July 14,
July 28, August 3, August 9, August 17, August 29,
September 12, September 21, September 29,
October 13, October 26, November 9, November 20,
November 28, December 22 and December 29
in 2023 and January 12, January 24, February 7,
February 14, February 29, March 11, March 26 and
March 30 in 2024. The details of the composition of
the Committee and attendance at its meetings held
during the year are set out in the following table:
BOARD’S REPORT
Annual Report 2023-24 | 91
Integrated Report
Statutory Reports
Financial Statements
Name of Member
Number of
meetings attended
Sandeep Bakhshi, Chairman
31/31
Hari L. Mundra
29/31
B. Sriram
31/31
Rakesh Jha
(w.e.f. May 1, 2023)
29/29
Anup Bagchi
(upto April 30, 2023)
2/2
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 four meetings of the Committee
during the year - May 17, 2023, August 8, 2023,
November 9, 2023 and February 14, 2024. 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
Vibha Paul Rishi, Chairperson
4/4
Hari L. Mundra
4/4
Sandeep Bakhshi
3/4
Rakesh Jha
4/4
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
status of filing of complaint with law enforcement
agencies and recovery position is also monitored by
the Committee. The Committee also ensures that staff
accountability is examined at all levels in all the cases
of frauds and action, if required, is completed quickly
without loss of time. The role of the Committee is also
to review the efficacy of the remedial action taken to
prevent recurrence of frauds, such as strengthening
of internal controls.
Composition
There were six meetings of the Committee during
the year – April 13, 2023, July 21, 2023, October 20,
2023, December 15, 2023, January 19, 2024 and
February 20, 2024. 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
Radhakrishnan Nair,
Chairman
6/6
S. Madhavan
6/6
Neelam Dhawan
6/6
Sandeep Bakhshi
6/6
Rakesh Jha
6/6
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 performance with
reference to IT & IS key risk indicators including
periodic review of such risk indicators, 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 including
review of IT capacity requirements and adequacy and
effectiveness of business continuity management
and disaster recovery, 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
BOARD’S REPORT
92 | Annual Report 2023-24
arising out of such reports/directives as may be
deemed necessary from time to time and review
deployment of skilled resources within Technology
and Information Security function to ensure effective
and efficient deliveries
Composition
There were five meetings of the Committee during the
year - April 13, 2023, July 20, 2023, October 12, 2023,
January 18, 2024 and March 28, 2024. 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
B. Sriram, Chairman
5/5
Neelam Dhawan
5/5
Anup Bagchi
(upto April 30, 2023)
1/1
Sandeep Batra
5/5
Rakesh Jha
(w.e.f. May 1, 2023)
4/4
IX. Risk Committee
Terms of Reference
The functions of the Committee are to review ICICI
Bank’s risk management policies pertaining to
credit, market, liquidity, operational, outsourcing,
reputation risks, business continuity plan and
disaster
recovery
plan
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
ERM framework, Risk Appetite for the Bank, stress
testing framework, ICAAP and framework for
capital allocation; review of the Basel framework,
risk dashboard covering various risks, outsourcing
activities, the activities of the Asset Liability
Management Committee and the proceedings of the
Group Risk Management Committee. 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 eight meetings of the Committee during
the year April 21, 2023, June 9, 2023, June 23, 2023,
July 20, 2023, October 20, 2023, January 19, 2024,
February 9, 2024 and March 22, 2024.
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
S. Madhavan, Chairman
8/8
Girish Chandra Chaturvedi
(upto June 30, 2024)
8/8
Pradeep Kumar Sinha
(w.e.f. February 23, 2024)
1/1
Vibha Paul Rishi
8/8
Sandeep Batra
8/8
X. Stakeholders Relationship Committee
Terms of Reference
The functions of the Committee include 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 21, 2023, July 21, 2023, October 19, 2023
and January 19, 2024. 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
Hari L. Mundra, Chairman
4/4
Uday Chitale
4/4
Sandeep Batra
4/4
BOARD’S REPORT
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Integrated Report
Statutory Reports
Financial Statements
Prachiti Lalingkar, Company Secretary of the Bank
acts as the Compliance Officer in accordance with
the requirements of the SEBI Listing Regulations.
481 investor complaints were received in fiscal
2024. At March 31, 2024, three complaints remained
unresolved which were subsequently disposed off
within the prescribed timelines.
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. One Meeting of the
Committee was held during the year. The Committee
Meeting held on September 1, 2023 was attended by
Sandeep Bakhshi, Uday Chitale and Radhakrishnan
Nair.
XII. Separate Meeting of Independent Directors
During the year, the Independent Directors met
on April 22, 2023 inter alia to review the matters
statutorily prescribed under the Companies Act, 2013
and the SEBI Listing Regulations.
XIII. Other Committees
A meeting of the Committee comprising of all the
Independent Directors of the Bank was held on
June 29, 2023. The Committee recommended to the
Board of Directors of the Bank, the draft scheme of
arrangement for delisting of ICICI Securities under
Regulation 37 of the Securities and Exchange Board
of India (Delisting of Equity Shares) Regulations,
2021 and making ICICI Securities a wholly owned
subsidiary of the Bank.
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), Committee
of
Executives,
Compliance
Committee,
Group
Risk Management Committee, Process Approval
Committee, Outsourcing Committee, Operational
Risk Management Committee, Vigilance Committee,
Product Governance Forum and other committees.
These committees are responsible for specific areas
like asset liability management, approval/renewal of
credit proposals, review of group risk management
framework, approval of products and processes
and management of operational risk, etc., under
authorisation/supervision of the Board and its
committees.
XIV. General Body Meetings
Annual General Meetings
The details of General Body Meetings held in the last three years are given below:
General Body Meeting
Day, Date
Time
Venue
Twenty-Ninth Annual
General Meeting
Wednesday,
August 30, 2023
2:00 p.m.
Meeting held through Video Conferencing/
Other Audio Visual Means
Twenty-Eighth Annual
General Meeting
Tuesday,
August 30, 2022
3:00 p.m.
Meeting held through Video Conferencing/
Other Audio Visual Means
Twenty-Seventh Annual
General Meeting
Friday,
August 20, 2021
3:00 p.m.
Meeting held through Video Conferencing/
Other Audio Visual Means
BOARD’S REPORT
94 | Annual Report 2023-24
The details of the Special Resolutions passed at the Annual General Meetings held in the year 2023 and 2022 are
given below:
General Body Meeting
Day, Date
Resolutions
Twenty-Ninth
Annual General Meeting
Wednesday,
August 30, 2023
•
Re-appointment of Hari L. Mundra (DIN: 00287029) as an
Independent Director of the Bank
•
Re-appointment of B. Sriram (DIN: 02993708) as an
Independent Director of the Bank
•
Re-appointment of S. Madhavan (DIN: 06451889) as an
Independent Director of the Bank
Twenty-Eighth
Annual General Meeting
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’
No Special Resolution was passed at the Twenty-Seventh Annual General Meeting held on Friday, August 20, 2021.
National Company Law Tribunal (NCLT)
Convened Meeting
In accordance with the order dated January 18, 2024
passed by the Hon’ble NCLT, Ahmedabad Bench,
the Meeting of Equity Shareholders of the Bank
was convened on March 27, 2024, through Video
Conference/Other Audio Visual Means, to consider
and approve, the Scheme of Arrangement amongst
the Bank and ICICI Securities and their respective
shareholders for delisting of equity shares of ICICI
Securities by issuing equity shares of the Bank to
the public shareholders of ICICI Securities in lieu of
cancellation of their equity shares in ICICI Securities.
The Bank had extended the remote e-voting facility
for its equity shareholders, to enable them to cast
their votes electronically. Further, the e-voting facility
during the Meeting was also available for those equity
shareholders, who were present in the Meeting and
had not cast their vote through remote e-voting and
were otherwise not barred from doing so.
Vinita Nair of Vinod Kothari & Company, Practicing
Company Secretaries, Scrutinizer submitted her
report on March 27, 2024. Basis the consolidated
Scrutinizer’s Reports, the resolution approving the
said Scheme of Arrangement was passed by the
Equity Shareholders:
•
with requisite statutory majority under Section
230 of the Companies Act, 2013;
•
with requisite statutory majority of Public
Shareholders under Regulation 37 of the
Securities and Exchange Board of India (Delisting
of Equity Shares) Regulations, 2021; and
•
with requisite statutory majority of Public
Shareholders under the Master Circular on
(i) Scheme of Arrangement by Listed Entities and
(ii) Relaxation under Sub-rule (7) of rule 19 of the
Securities Contracts (Regulation) Rules, 1957
dated June 20, 2023.
The Scrutinizer Reports and the Voting results of the
said Meeting are available on the website of the stock
exchanges and website of the Bank.
Postal Ballot
No resolution was passed through postal ballot
during fiscal 2024.
In accordance with the applicable provisions of
the Companies Act, 2013 read with rules made
thereunder and the General Circulars issued by
BOARD’S REPORT
Annual Report 2023-24 | 95
Integrated Report
Statutory Reports
Financial Statements
the Ministry of Corporate Affairs, approval of the
Members was sought vide Postal Ballot Notice dated
April 5, 2024 by way of electronic voting (‘remote
e-voting’) on the following Resolutions:
1.
Special
Resolution
for
appointment
of
Mr. Pradeep Kumar Sinha (DIN: 00145126)
as an Independent Director with effect from
February 17, 2024;
2.
Ordinary Resolution for compensation payable
to Pradeep Kumar Sinha (DIN: 00145126) as
Non-Executive Part-time Chairman with effect
from July 1, 2024 or the date of approval from
Reserve Bank of India, whichever is later;
3.
Ordinary Resolution for revision in compensation
in the form of fixed remuneration payable to the
Non-Executive Directors (other than part-time
Chairman and the Director nominated by the
Government of India);
4.
Ordinary
Resolution
for
revision
in
fixed
remuneration of Girish Chandra Chaturvedi
(DIN: 00110996), Non-Executive (Part-time)
Chairman; and
5.
Ordinary Resolution for appointment of Ajay
Kumar Gupta (DIN: 07580795) as a Director and
Whole-time Director (designated as Executive
Director) with effect from March 15, 2024 and
payment of remuneration to him.
Vinita Nair of Vinod Kothari & Company, Practicing
Company Secretaries, Scrutinizer submitted her
report on May 15, 2024. Basis the consolidated
Scrutinizer’s report, all the above resolutions were
passed with requisite majority on May 14, 2024
(being the last date of remote e-voting).
The Scrutinizer Report and the Voting results of the
said Meeting are available on the website of the stock
exchanges and website of the Bank.
None of the businesses proposed to be transacted
at the ensuing AGM require passing of resolution
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)
SEBI
issued
administrative
warning
letter dated March 30, 2024 in respect
of the observations identified during the
inspection of Depository Participant (DP)
activities for the following observations:
a.
In one instance, bank account was not
updated in back-office system.
b.
In one instance of Delivery Instruction
Slip (DIS) issuance, DP has issued DIS
booklet to client on April 17, 2023 but
same was not entered in Depository
Participant Module system.
The Bank vide its letter dated April 6, 2024
to SEBI, has submitted action taken report
on the observations made by SEBI. Further,
as advised by SEBI, the aforementioned
letter from SEBI along with inspection
findings and the corrective steps taken by
the Bank were placed before the Board of
Directors in its meeting held on April 27,
2024. The Board noted the steps taken by
the Bank and advised to ensure compliance
with the instructions issued by SEBI. The
same was informed to SEBI by the Bank
vide letter dated May 30, 2024.
(ii)
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.
(iii) SEBI issued an administrative warning on
March 2, 2023 for collection of registration
fees in advance before registration of
Common Application Form (CAF) and
collection of balance fees in case of
re‑categorization of FPI category and
non-updation
of
operational
manual
with specific section to deal with specific
BOARD’S REPORT
96 | Annual Report 2023-24
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.
(iv) 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.
(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.
3.
In terms of the Whistle Blower Policy of the
Bank, no employee of the Bank has been denied
access to the Audit Committee.
4.
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.
5.
There is no application or proceeding pending
against the Bank under the Insolvency and
Bankruptcy Code, 2016 during the year under
review.
6.
There was no instance of one-time settlement
with any other Bank or financial institution
during the year under review.
XVI. MEANS OF COMMUNICATION
It is ICICI Bank’s belief that all stakeholders should
have access to information regarding its position to
enable them to accurately assess its future potential.
ICICI Bank disseminates information on its operations
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
Thirtieth Annual General
Meeting through Video
Conferencing/Other Audio
Visual Means
Thursday,
August 29,
2024
3:00
p.m.
Financial Year : April 1, 2023 to March 31, 2024
Record Date : August 12, 2024
Dividend Payment Date : Will be paid/despatched
on or after September 2, 2024
BOARD’S REPORT
Annual Report 2023-24 | 97
Integrated Report
Statutory Reports
Financial Statements
Listing of equity shares/ADSs/Bonds on Stock
Exchanges
Stock Exchange
Code for
ICICI Bank
BSE Limited (Equity)
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai 400 001
532174
&
6321741
National Stock Exchange of India
Limited (Equity)
Exchange Plaza, Bandra-Kurla
Complex, Mumbai 400 051
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 382 355 or SIX
Swiss Exchange Ltd, Pfingstweidstrasse 110, P.O.
Box 1758, CH-8021 Zurich, Switzerland.
Market Price Information
The reported high and low closing prices and volume of equity shares of ICICI Bank traded during fiscal 2024 on BSE
and NSE are set out in the following table:
Month
BSE
NSE
Total Volume on
BSE and NSE
High (`)
Low (`)
Volume
High (`)
Low (`)
Volume
April-23
918.50
868.30
3,734,903
918.35
868.45
477,530,514
481,265,417
May-23
954.60
921.25
5,087,937
954.30
921.70
400,248,418
405,336,355
June-23
947.25
922.85
4,079,529
946.75
923.15
315,849,797
319,929,326
July-23
998.05
942.00
7,218,546
998.30
942.55
373,788,451
381,006,997
August-23
995.10
950.95
8,585,667
994.55
950.65
419,882,175
428,467,842
September-23
992.35
942.70
5,493,885
992.45
942.60
321,389,248
326,883,133
October-23
954.95
909.15
9,883,920
954.25
908.65
210,597,432
220,481,352
November-23
948.35
914.40
8,953,654
948.10
914.05
250,222,994
259,176,648
December-23
1,037.10
946.35
12,963,103
1,037.40
946.70
337,503,340
350,466,443
January-24
1,029.45
979.30
17,537,414
1,029.05
979.75
419,667,168
437,204,582
February-24
1,063.65
989.60
8,805,282
1,062.70
989.30
275,645,002
284,450,284
March-24
1,096.80
1,076.95
15,766,553
1,097.10
1,076.85
351,930,258
367,696,811
BOARD’S REPORT
98 | Annual Report 2023-24
The reported high and low closing prices and volume of ADSs of ICICI Bank traded during fiscal 2024 on the NYSE
are given below:
Month
High (USD)
Low (USD)
Number of ADS traded
April-23
22.75
21.37
86,158,700
May-23
23.08
22.45
77,704,900
June-23
23.11
22.60
82,153,525
July-23
24.66
22.96
73,859,355
August-23
24.50
22.82
91,903,102
September-23
24.03
22.74
78,290,525
October-23
23.06
22.04
91,908,554
November-23
22.84
22.12
115,404,498
December-23
24.69
22.97
112,969,000
January-24
24.47
23.16
170,193,064
February-24
25.96
23.58
103,023,672
March-24
26.48
25.82
108,870,218
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, 2023 to March 31, 2024 is given in the following chart:
Share Transfer System, Dematerilisation of
Shares and Liquidity
As per the SEBI mandate, securities of listed companies
can be transferred/traded only 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.
S&P BSE Sensex
S&P BSE Bankex
NYSE Financial Index
ICICI Bank
Apr/23
80.00
95.00
110.00
125.00
May/23
Jun/23
Jul/23
Aug/23
Sep/23
Oct/23
Nov/23
Dec/23
Jan/24
Feb/24
Mar/24
BOARD’S REPORT
Annual Report 2023-24 | 99
Integrated Report
Statutory Reports
Financial Statements
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
India
(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
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
KFin Technologies Limited is the Registrar & Transfer
Agent (R & T Agent) for equity shares of ICICI Bank.
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
Hyderabad 500 032, Rangareddy
Telangana, India
Tel. No.: +91-040-6716 2222
Fax No.: +91-040-2342 0814
Toll free No.: 18003094001
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
E-mail: ICICIbonds@3i-infotech.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.: +91-22-4008 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
IDBI Trusteeship Services Limited
The Ruby, 2nd Floor, SW 29
Universal Insurance Building
Senapati Bapat Marg
Ground Floor, Sir P.M. Road
Dadar West, Mumbai 400 028
Fort, Mumbai 400 001
Tel. No.: +91-22-6230 0451
Tel. No.: +91-22-4080 7000
debenturetrustee@axistrustee.com
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.
BOARD’S REPORT
100 | Annual Report 2023-24
Bank’s Customer Service
The Bank enables customers to avail of services through multiple channels.
•
iMobile Pay: Seek resolution using the iPAL chat bot.
•
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
•
Customer care: Connect with us over the phone. To know more, visit
https://www.icicibank.com/customer-care?ITM=nli_cms_CONTACT_US_customer_care_menu_navigation
•
Email: Write to us at customer.care@icicibank.com
•
Branch: Visit our branch for resolution. Alternative, drop queries/feedback in the drop box at branches.
Information on Shareholding
Shareholding pattern of ICICI Bank at March 31, 2024
Shareholder Category
No. of Shares
% holding
Deutsche Bank Trust Company Americas (Depositary for ADS holders)
1,374,664,201
19.58
FIIs/FPIs
2,528,698,726
36.01
Insurance Companies
670,665,487
9.55
Bodies Corporate (includes Government Companies, Clearing Members,
Banks and Financial Institutions)
84,843,885
1.21
Mutual Funds
1,678,991,546
23.91
Individuals (includes HUF, Trusts, NRI)
456,447,048
6.50
NBFCs Registered with RBI
13,615,190
0.19
Provident Funds/Pension Funds
156,145,413
2.22
Alternate Investment Fund
41,343,838
0.59
Investor Education and Protection Fund
8,875,168
0.13
Others (includes Foreign Banks, Foreign Companies, Foreign Nationals etc.)
8,045,141
0.11
Total
7,022,335,643
100.00
Shareholders of ICICI Bank with more than one percent holding (PAN based) at March 31, 2024
Name of the Shareholder
No. of Shares
% holding
Deutsche Bank Trust Company Americas*
1,374,664,201
19.58
SBI Mutual Fund
403,067,084
5.74
Life Insurance Corporation of India
395,845,579
5.64
ICICI Prudential Mutual Fund
253,779,280
3.61
HDFC Mutual Fund
194,958,823
2.78
Government of Singapore
178,441,181
2.54
NPS Trust
156,145,413
2.22
UTI Mutual Fund
134,253,686
1.91
Nippon Life India Mutual Fund
104,008,735
1.48
SBI Life Insurance Company Limited
89,523,653
1.27
Aditya Birla Sun Life Mutual Fund
80,680,613
1.15
Government Pension Fund Global
75,410,144
1.07
Kotak Mutual Fund
73,435,503
1.05
* Deutsche Bank Trust Company Americas holds equity shares of ICICI Bank as depositary for ADS holders.
BOARD’S REPORT
Annual Report 2023-24 | 101
Integrated Report
Statutory Reports
Financial Statements
Distribution of shareholding of ICICI Bank at March 31, 2024
Range - Shares
No. of Folios
%
No. of Shares
%
1 - 5,000
1,850,055
98.75
244,000,021
3.47
5,001 - 10,000
11,753
0.63
40,652,980
0.58
10,001 - 20,000
5,163
0.28
35,919,307
0.51
20,001 - 30,000
1,603
0.08
19,643,006
0.28
30,001 - 40,000
758
0.04
13,271,501
0.19
40,001 - 50,000
446
0.02
10,070,142
0.14
50,001 - 100,000
995
0.05
35,576,217
0.51
100,001 & Above
2,739
0.15
6,623,202,469
94.32
Total
1,873,512
100.00
7,022,335,643
100.00
Details of shares held in Demat and Physical form at March 31, 2024
Mode of holding
No. of Shares
%
Demat
7,010,837,674
99.84
Physical
11,497,969
0.16
Total
7,022,335,643
100.00
Details of shares/convertible instruments held by
Non-executive Directors
As on March 31, 2024, 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 2024, the
Bank had processed requests received from three
shareholders holding 236 shares and accordingly
the said shares were transferred from the suspense
account. As on March 31, 2024, 93,202 shares held
by 464 shareholders remained unclaimed in the
suspense account.
The voting rights on the shares lying in suspense
account are frozen till the rightful owner of such
shares claims the shares.
Transfer of unclaimed dividend and shares to
Investor Education & Protection Fund (IEPF)
Pursuant to the provisions of Sections 124 and 125 of
the Companies Act, 2013, during fiscal 2024, dividend
amount of ` 73.32 million remaining unclaimed for a
period of seven years from the date of its transfer to
the Unpaid Dividend Accounts of the Company 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 2024, 709,546
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 to IEPF.
Members who have not yet encashed their dividend
warrant(s) for the financial year ended March 31,
2018 and/or subsequent years are requested to
submit their claims to KFin Technologies Limited
without any delay.
The details of Nodal Officer and Deputy NodaI Officers
appointed under the provisions of IEPF are available
on the website of the Bank at https://www.icicibank.
com/about-us/invest-relations/unpaid-unclaimed-
dividend.
BOARD’S REPORT
102 | Annual Report 2023-24
Outstanding GDRs/ADSs/Warrants or any
Convertible instruments, conversion date and
likely impact on equity
ICICI Bank has 687.33 million ADS (equivalent to
1,374.66 million equity shares) outstanding, which
constituted 19.58% of ICICI Bank’s total equity capital
at March 31, 2024. There are no other convertible
instruments outstanding as on March 31, 2024.
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
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 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.: +91-22-4008 8900
E-mail: companysecretary@icicibank.com
The Bank is in compliance with requirements specified
in Regulations 17 to 27 and clauses (b) to (i) 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 details required 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. 55 of
Schedule 18 of the financial statements.
COMPLIANCE CERTIFICATE OF THE
AUDITORS
ICICI Bank has annexed to this Report, a certificate obtained
from the Secretarial Auditor 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
BOARD’S REPORT
Annual Report 2023-24 | 103
Integrated Report
Statutory Reports
Financial Statements
of the shareholders and retention. Through employee
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 BGRNC and noted/approved by the Board
as the case maybe.
The Scheme 2000 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, 2024 granted (net of
lapsed) 625.52 million stock options from time to time
aggregating to 8.91% of the issued equity capital
of the Bank at March 31, 2024. 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 702.23 million shares of face
value ` 2.00 each at March 31, 2024).
Particulars of options granted by ICICI Bank as on
March 31, 2024 are given below:
Number of options outstanding1
at the beginning of the year
225,025,803
Number of options granted
during the year
14,635,600
Number of options forfeited/
lapsed during the year
1,410,025
Number of options vested during
the year
25,931,860
Number of options exercised
during the year
39,519,912
Number of shares arising as a
result of exercise of options
39,519,912
Money realised by exercise of
options during the year (`)
11,708,674,581
Number of options outstanding1
at the end of the year
198,731,466
Number of options exercisable at
the end of the year
159,296,026
1 options granted less exercised less lapsed
(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).
Units granted under the Scheme 2022 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 13 months from the date of grant.
Exercise period will not exceed five years from date
of vesting of units or such shorter period as may be
determined by the BGRNC for each grant.
BOARD’S REPORT
104 | Annual Report 2023-24
Besides continuity of employment, vesting shall also
be dependent on achievement of certain corporate
performance parameter(s) such as:
•
Risk Calibrated Core Operating profit;
•
Provision/asset quality;
•
Other parameters, if any, as the Committee may
determine
Particulars of units granted by ICICI Bank as on
March 31, 2024 are given below:
Number of units outstanding1
at the beginning of the year
Nil
Number of units granted during
the year
4,419,670
Number of units forfeited/
lapsed during the year
228,860
Number of units vested during
the year
2,700
Number of units exercised
during the year
Nil
Number of shares arising as a
result of exercise of units
Nil
Money realised by exercise of
units during the year (`)
Nil
Number of units outstanding1
at the end of the year
4,190,810
Number of units exercisable at
the end of the year
2,700
1 units granted 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/units
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/units on the grant date
and the inputs used in the valuation model include
assumptions such as the expected life of the share
option/units, 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 for the
year ended March 31, 2024 was ` 57.33 compared to
basic EPS of ` 58.38.
The following table sets forth, for the periods
indicated, the key assumptions used to estimate the
fair value of options granted.
Particulars
Year ended
March 31, 2023
Year ended
March 31, 2024
Risk-free
interest rate
5.99% to 7.37%
6.88% to 7.32%
Expected life
3.23 to 5.23
years
3.23 to 5.23
years
Expected
volatility
34.79% to
38.98%
24.78% to
37.41%
Expected
dividend yield
0.27% to 0.72%
0.56% to 0.85%
The following table sets forth, for the periods
indicated, the key assumptions used to estimate the
fair value of units granted.
Particulars
Year ended
March 31, 2024
Risk-free interest rate
6.82% to 6.94%
Expected term
1.58 to 3.58 years
Expected volatility
23.63% to 36.56%
Expected dividend yield
0.56%
The weighted average fair value, based on Black-
Scholes model, of options granted during the year
ended March 31, 2024 was ` 340.59 (year ended
March 31, 2023: ` 291.15) and of units granted during
the year ended March 31, 2024 was ` 879.43. The
weighted average exercise price of options granted
during the year ended March 31, 2024 was ` 894.95
(year ended March 31, 2023: ` 747.92).
Risk free interest rates over the expected term of the
option/units are based on the government securities
yield in effect at the time of the grant. The expected
term of an option/units is estimated based on the
vesting term as well as expected exercise behavior of
the employees who receive the option/units. 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/units 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/units are based on recent dividend activity.
BOARD’S REPORT
Annual Report 2023-24 | 105
Integrated Report
Statutory Reports
Financial Statements
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.
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 2024 which will be available on the website of
the Bank at https://www.icicibank.com/about-us/annual
and in the Environment and Sustainability chapter in the
Integrated Report section of the Annual Report 2023-24.
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 2023‑24. For fiscal 2024, net foreign exchange gain
arising on all exchange/derivative transactions of the Bank
was ` 29.99 billion and the foreign exchange outgo towards
the operating and capital expenditure was ` 3.44 billion.
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 fiscal 2024.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors confirm:
1.
that in the preparation of the annual accounts, the
applicable accounting standards had been followed,
along with proper explanation relating to material
departures;
2.
that they have selected such accounting policies and
applied them consistently and made judgements and
estimates that are reasonable and prudent, so as to
give a true and fair view of the state of affairs of the
Bank at the end of the financial year and of the profit
of the Bank for that period;
3.
that they have taken proper and sufficient care for
the maintenance of adequate accounting records,
in accordance with the provisions of the Banking
Regulation Act, 1949 and the Companies Act,
2013 for safeguarding the assets of the Bank
and for preventing and detecting fraud and other
irregularities;
4.
that they have prepared the annual accounts on a
going concern basis;
5.
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
6.
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.
ICICI Bank would like to take this opportunity to express
sincere thanks to its valued clients and customers for
their continued patronage. The Directors express their
deep sense of appreciation to all the employees whose
outstanding professionalism, commitment and initiative
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
June 29, 2024
DIN: 00110996
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, 2024.
Sandeep Bakhshi
Managing Director & CEO
April 27, 2024
DIN: 00109206
BOARD’S REPORT
106 | Annual Report 2023-24
ANNEXURE A
FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2024
[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 (CIN: L65190GJ1994PLC021012) (hereinafter
called “the Bank”).
The 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 Bank's statutory registers,
books, papers, minute books, forms and returns filed and
other records maintained by the Bank and the information
provided by the Bank, its officers, agents and authorized
representatives during the conduct of secretarial audit,
we hereby report that in our opinion, the Bank has, during
the audit period covering the financial period ended on
March 31, 2024, complied with the statutory provisions
listed hereunder and also that the Bank has followed
proper Board processes and has required compliance
mechanism in place to the extent, in the manner and
subject to the reporting made hereinafter:
We have examined the books, papers, minutes books,
forms and returns filed and other records maintained by
the Bank for the financial period ended on March 31, 2024
in accordance with the provisions of:
(i)
The Companies Act, 2013 (the Act) and the Rules
made thereunder;
(ii)
The Securities Contracts (Regulation) Act, 1956
(‘SCRA’) and the Rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and
the Rules and Regulations made thereunder for
compliance to the extent of Foreign Direct Investment,
Overseas Direct Investment and External Commercial
Borrowings;
(v) The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India
Act, 1992 (‘SEBI Act’), as amended from time to time:
a)
The Securities and Exchange Board of India
(Substantial
Acquisition
of
Shares
and
Takeovers) Regulations, 2011;
b)
The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations,
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)
The Securities and Exchange Board of India
(Issue and Listing of Non-Convertible Securities)
Regulations, 2021;
f)
The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer
Agents)
Regulations,
1993
regarding
the
Companies Act and dealing with client - Not
applicable to the Bank during the financial
year under review;
g)
The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2021
- Not applicable to the Bank for the purpose
of its equity shares during the financial year
under review;
h)
The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 2018 - Not
applicable to the Bank during the financial
year under review;
i)
The Securities and Exchange Board of India
(Depositories and Participants) Regulations,
2018;
BOARD’S REPORT
Annual Report 2023-24 | 107
Integrated Report
Statutory Reports
Financial Statements
j)
The Securities and Exchange Board of India
(Debenture Trustee) Regulations, 1993;
k)
The Securities and Exchange Board of India
(Custodian) Regulations, 1996;
l)
The Securities and Exchange Board of India
(Bankers to an issue) Regulations, 1994;
m) The Securities and Exchange Board of India
(Stock Brokers) Regulations, 1992;
n)
The Securities and Exchange Board of India
(Merchant Bankers) Regulations, 1992;
o)
The Securities and Exchange Board of India
(Foreign Portfolio Investors) Regulations, 2019
(vi) Other
specific
business/industry
related
laws
applicable to the Bank –
a)
The Bank has complied with the provisions of the
Banking Regulation Act, 1949, Master Circulars,
Notifications and Guidelines and other directions
pertaining to commercial banking issued by
Reserve Bank of India (RBI) from time to time.
b)
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
Further, the Bank has complied with other applicable
general business laws, rules, regulations and guidelines.
We have also examined compliance with the applicable
clauses of the following:
i.
Secretarial Standards with regard to Meeting of
Board of Directors (SS-1) and General Meetings (SS-2)
issued by The Institute of Company Secretaries of
India; and
ii.
The Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 (SEBI LODR Regulations).
During the period under review, the Bank has complied with
the provisions of the Act, Rules, Regulations, Guidelines
and Standards mentioned above. Further, there were
certain regulatory/statutory penalties imposed/warnings
issued to the Bank. The Bank has paid the requisite
penalty, wherever applicable and taken necessary
corrective actions.
We further report that:
(a) The Board of Directors of the Bank is duly constituted
with proper balance of Executive Directors, Non-
Executive Directors and Independent Directors.
(b) 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.
(c) Adequate notice is given to all directors to schedule
the Board Meetings, agenda and detailed notes on
agenda were sent in advance as prescribed under the
applicable Secretarial Standards, 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.
(d) 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.
(e) The decision at the meetings of the Board/committees
were taken with requisite majority. The minutes of the
Board/committees Meetings record that none of the
members of the Board /committees have dissented to
any proposal.
We further report that, there are adequate systems and
processes in the Bank commensurate with the size and
operations of the Bank to monitor and ensure compliance
with applicable laws, rules, regulations and guidelines.
As informed, the Bank has responded appropriately to
communication received from various statutory/regulatory
authorities including initiating actions for corrective
measures, wherever found necessary.
We further report that during the audit period the
following events / actions have taken place, having a major
bearing on the Bank’s affairs in pursuance of the above
referred laws, rules, regulations, guidelines and standards:
1.
During the financial year, the Bank has allotted
3,95,19,912 Equity Shares of ` 2/- each under the
Employee Stock Option Scheme.
2.
Bank has allotted 4,00,000 Senior Unsecured
Redeemable Long-term Bonds in the nature of Non-
convertible Debentures aggregating to ` 4,000.0
Crore on private placement basis on October 3, 2023.
BOARD’S REPORT
108 | Annual Report 2023-24
3.
Pursuant to the Order dated January 18, 2024 passed
by the Hon’ble National Company Law Tribunal,
Ahmedabad Bench, the Equity Shareholders of the
Bank at the meeting held on March 27, 2024 have
approved the Scheme of Arrangement amongst the
Bank and ICICI Securities Limited (‘ICICI Securities’
Place : Mumbai
ALWYN JAY & Co.
Date : June 20, 2024
Company Secretaries
Office Address :
[Alwyn D’Souza, FCS.5559]
Annex-103, Dimple Arcade,
[Partner]
Asha Nagar, Kandivali (East),
[Certificate of Practice No.5137]
Mumbai 400101.
[UDIN : F005559F000596820]
Note: 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.
or ‘the Company’) and their respective shareholders
(‘Scheme’) for delisting of equity shares of ICICI
Securities by issuing equity shares of the Bank to
the public shareholders of ICICI Securities in lieu of
cancellation of their equity shares in the Company
under Section 230 of the Companies Act,2013.
BOARD’S REPORT
Annual Report 2023-24 | 109
Integrated Report
Statutory Reports
Financial Statements
ANNEXURE A
To
The Members,
ICICI Bank Limited
Secretarial Audit Report of even date is to be read along with this letter.
1.
The compliance of provisions of all laws, rules, regulations, standards, Circulars, Guidelines and Standards etc.
applicable to ICICI Bank Limited (hereinafter called ‘the Bank’) is the responsibility of the management of the Bank.
Our examination was limited to the verification of records and procedures on test check basis for the purpose of
issue of the Secretarial Audit Report.
2.
Maintenance of secretarial and other records of applicable laws is the responsibility of the management of the Bank.
Our responsibility is to issue Secretarial Audit Report, based on the audit of the relevant records maintained and
furnished to us by the Bank, along with explanations where so required.
3.
We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the secretarial and other legal records, legal compliance mechanism and corporate
conduct. Further, part of the verification was done on the basis of electronic data provided to us by the Bank and on
test check basis to ensure that correct facts as reflected in secretarial and other records produced to us. We believe
that the processes and practices we followed, provides a reasonable basis for our opinion for the purpose of issue of
the Secretarial Audit Report.
4.
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Bank.
5.
Wherever required, we have obtained the management representation about list of applicable laws, compliance of
laws, rules and regulations and major events during the audit period.
6.
The Secretarial Audit Report is neither an assurance as to the future viability of the Bank nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Bank.
Place : Mumbai
ALWYN JAY & Co.
Date : June 20, 2024
Company Secretaries
Office Address :
[Alwyn D’Souza, FCS.5559]
Annex-103, Dimple Arcade,
[Partner]
Asha Nagar, Kandivali (East),
[Certificate of Practice No.5137]
Mumbai 400101.
[UDIN : F005559F000596820]
BOARD’S REPORT
110 | Annual Report 2023-24
ANNEXURE B
FORM NO. AOC-2
[Pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 and
Rule 8(2) of the Companies (Accounts) Rules, 2014]
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred
to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arm’s length transactions under third
proviso thereto
1.
Details of contracts or arrangements or transactions not at arm’s length basis
Nil
2.
Details of material contracts or arrangement or transactions at arm’s length basis
Sr.
No.
Name of
the related
party
Nature of
relationship
Nature of
contracts/
arrangements/
transactions
Duration of
contracts/
arrangements/
transactions
Salient terms
of contracts/
arrangements/
transactions
` in million
Date of
approval
by the
Board,
if any
Amount
paid as
advances,
if any
1
ICICI
Securities
Primary
Dealership
Limited
Wholly
owned
subsidiary
Short term
lending by the
Bank
1 day - 4 days
Interest at
prevailing market
rates
1,021,540.0
-
-
For and on behalf of the Board
Girish Chandra Chaturvedi
Chairman
June 29, 2024
DIN: 00110996
BOARD’S REPORT
Annual Report 2023-24 | 111
Integrated Report
Statutory Reports
Financial Statements
ANNEXURE C
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 - 390 007
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, 2024 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, 2024
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. Pradeep Kumar Sinha
00145126
Additional Director
(Non-Executive Independent)
February 17, 2024
6.
Mr. Radhakrishnan Nair
07225354
Non-Executive - Independent Director
May 02, 2018
7.
Mr. B. Sriram
02993708
Non-Executive - Independent Director
January 14, 2019
8.
Mr. Uday Chitale
00043268
Non-Executive - Independent Director
January 17, 2018
9.
Ms. Vibha Paul Rishi
05180796
Non-Executive - Independent Director
January 23, 2022
10.
Mr. Sandeep Bakhshi
00109206
Managing Director & Chief Executive Officer
October 15, 2018
11.
Mr. Sandeep Batra
03620913
Wholetime Director
December 23, 2020
12.
Mr. Rakesh Jha
00042075
Wholetime Director
September 02, 2022
13.
Mr. Ajay Kumar Gupta
07580795
Additional Director
(Executive - Whole-time)
March 15, 2024
BOARD’S REPORT
112 | Annual Report 2023-24
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.
For M/s Vinod Kothari & Company
Practicing Company Secretaries
Unique Code: P1996WB042300
Vinita Nair
Senior Partner
Membership No.: F10559
C P No.: 11902
Place: Mumbai
Peer Review Certificate No.: 4123/2023
Date: April 26, 2024
UDIN: F010559F000254858
BOARD’S REPORT
Annual Report 2023-24 | 113
Integrated Report
Statutory Reports
Financial Statements
ANNEXURE D
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 large 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.
The CSR Policy of the Bank sets the framework
guiding the Bank’s CSR activities. It outlines the
governance
structure,
operating
framework,
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, skill development
and
sustainable
livelihood,
rural
development,
social and environmental projects, creating social
awareness and activities like disaster relief or other
activities under Schedule VII of the Companies Act,
2013 (“the Act”).
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
There were four Meetings of the Committee during fiscal 2024 – April 20, 2023, July 21, 2023, October 19, 2023 and
January 18, 2024
Sr.
No.
Name of Director
Designation/ nature of
directorship
Number of meetings
of CSR Committee
held during the year
Number of meetings of
CSR Committee attended
during the year
1.
Girish Chandra Chaturvedi
(Chairman of Committee upto
June 30, 2024)
Non-Executive
(part-time) Chairman /
Independent Director
4
4
2.
Pradeep Kumar Sinha
(Member of Committee w.e.f.
February 23, 2024, Chairman of
Committee w.e.f. July 1, 2024)
Independent Director
4^
-
3.
Radhakrishnan Nair
Independent Director
4
4
4.
Uday Chitale
Independent Director
4
4
5.
Vibha Paul Rishi
Independent Director
4
4
6.
Anup Bagchi
(Member of Committee upto
April 30, 2023)
Executive Director
4#
1
7.
Rakesh Jha (Member of
Committee w.e.f. May 1, 2023)
Executive Director
4*
3
^ No Meeting of the Committee was held during fiscal 2024 post induction of Pradeep Kumar Sinha on the Committee
# One Meeting of the Committee was held during fiscal 2024 till the date of cessation of Anup Bagchi
* Three Meetings of the Committee were held during fiscal 2024 post induction of Rakesh Jha on the Committee
BOARD’S REPORT
114 | Annual Report 2023-24
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
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 has conducted impact assessment of
twelve projects through external agencies during
fiscal 2024. These include:
1.
Impact assessment of MRI equipment provided
to Tata Memorial Hospital, Mumbai, Maharashtra
2.
Impact assessment of funds provided to patients
for cancer treatment through the Indian Cancer
Society
3.
Impact
assessment
of
cancer
treatment
equipment provided to Cachar Cancer Hospital
and Research Centre, Silchar, Assam
4.
Impact assessment of CT scan machine provided
to Indo-Tibetan Border Police (ITBP) Force
Composite Hospital, Dehradun, Uttarakhand
5.
Impact assessment of cancer care equipment
provided to Mahamana Pandit Madan Mohan
Malviya Cancer Centre Hospital, Varanasi, Uttar
Pradesh
6.
Impact assessment of solar power installation
at Dr. Shroff’s Charity Eye Hospital, Lakhimpur
Kheri, Uttar Pradesh
7.
Impact assessment of waste collection vehicles
provided to Gorakhpur Municipal Corporation,
Uttar Pradesh
8.
Impact assessment of education grants provided
to children of ex-servicemen and war widows
through the Kendriya Sainik Board
9.
Impact assessment of training infrastructure
provided for enabling piped water supply to
homes in Bihar
10. Impact
assessment
of
financial
inclusion
programme
11. Impact
assessment
of
social
awareness
programme, and
12. Impact
assessment
of
fraud
awareness
campaign undertaken in 2022.
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
` 284,474.8 million
(b) Two percent of average net profit of
the Company as per sub-section (5) of
Section 135
` 5,689.5 million
(c) Surplus arising out of the CSR projects or
programmes or activities of the previous
financial years
` 171.2 million
(d) Amount required to be set-off for the
financial year, if any
` 688.1 million
(e) Total CSR obligation for the financial
year [(b)+(c)-(d)]
` 5,172.6 million
6.
(a) Amount spent on CSR Projects (both
ongoing project and other than ongoing
projects)
` 5,179.9 million
(includes unspent amount of ` 1,500.0 million
budgeted for ongoing CSR project with Tata
Memorial Centre, which was transferred to the
Unspent CSR Account on April 15, 2024 and
would be spent over three years, as per CSR
rules.)
(b) Amount
spent
in
Administrative
Overheads
Nil
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Financial Statements
(c) Amount spent on Impact Assessment, if applicable
` 8.8 million
(d) Total amount spent for the Financial Year [(a) + (b) +(c)]
` 5,188.7 million
(includes spends from surplus generated from CSR activities in fiscal 2023 of ` 171.2 million and spent by
September 30, 2023, and unspent amount of ` 1,500.0 million budgeted for ongoing CSR project with Tata
Memorial Centre, which was transferred to the Unspent CSR Account on April 15, 2024 and would be spent
over three years, as per CSR rules.)
(e) CSR amount spent or unspent for the financial year:
Total amount
spent in fiscal
2024
(in ` million)
Amount unspent (in ` million)
Total amount transferred to
Unspent CSR Account as per
Section 135(6)
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
3,688.7#
1,500.0*
April 15, 2024
Nil
NA
NA
# Includes spends from surplus generated from CSR activities in fiscal 2023 of ` 171.2 million and spent by September 30, 2023.
* Unspent amount of ` 1,500.0 million pertains to the ongoing project on cancer care with Tata Memorial Centre.
(f) Excess amount for set-off, if any
Sr. No. Particular
Amount
(in ` million)
(1)
(2)
(3)
(i)
2% of average net profit of the Company as per Section 135(5)
5,001.5*
(ii)
Total amount spent for the Financial Year
5,188.7#
(iii)
Excess amount spent for the financial year [(ii)-(i)]
187.2
(iv)
Surplus arising out of the CSR projects or programmes or activities of the previous
financial years, if any
171.2
(v)
Amount available for set off in succeeding financial years [(iii)-(iv)]
16.0
* Adjusted for excess amount of ` 688.1 million spent during fiscal 2023 and available for set off in fiscal 2024
# 1) Includes spends from surplus generated from CSR activities in FY2023 of ` 171.2 million that was transferred to the Unspent
CSR Account in April 2023 and spent by September 30, 2023, as required by law.
2) Includes unspent amount of ` 1,500.0 million budgeted for the ongoing project on cancer care with Tata Memorial Centre.
The amount was transferred to the Unspent CSR Account on April 15, 2024 and would be spent over three years as per
CSR Rules.
7.
Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:
Not applicable
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116 | Annual Report 2023-24
8.
Whether any capital assets have been
created or acquired through Corporate Social
Responsibility amount spent in the Financial
Year:
Yes
If yes, enter the number of capital assets
created/acquired
6,365
Furnish the details relating to such asset(s) so
created or acquired through Corporate Social
Responsibility amount spent in the Financial
Year:
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
The Bank has committed ` 12.00 billion to support
Tata Memorial Centre (TMC) for expanding cancer
treatment facility in the country. This entails setting
up three centres in Maharashtra, Punjab and Andhra
Pradesh, and is expected to double the capacity for
cancer treatment by TMC. In fiscal 2024, ` 1,500.0
million was budgeted towards the ongoing project.
Considering the nature and scale of the project,
during the year detailed plans were being finalised
for orderly execution of the project and the budgeted
amount remained unspent. The amount was
transferred to the Unspent CSR Account on April 15,
2024 and would be spent over three years as per
CSR Rules.
Sandeep Batra
Girish Chandra Chaturvedi
Executive Director
CSR Committee Chairman
DIN: 03620913
DIN: 00110996
June 29, 2024
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ANNEXURE 1: SUMMARY OF IMPACT ASSESSMENT STUDIES CONDUCTED DURING FISCAL
2024 THROUGH EXTERNAL AGENCIES
1.
Impact
assessment
of
MRI
equipment
provided to Tata Memorial Hospital, Mumbai,
Maharashtra
As part of the focus to strengthen the healthcare
capacity of hospitals, the Bank, through ICICI
Foundation for Inclusive Growth (ICICI Foundation),
provided a new MRI equipment to Tata Memorial
Hospital at Mumbai at a cost of ` 50.0 million. The
objective was to replace an outdated MRI equipment
that was last upgraded in 2007 and help the hospital
in improving patient throughput and provide better
treatment. The life expectancy of the upgraded
equipment was 10 years. Interviews were conducted
of doctors, technicians, administrative staff and
patients, based on a selected sample.
Key findings of the assessment were:
•
Doctors
and
technicians
highlighted
the
necessity for upgrading the outdated MRI
equipment, as patient throughput was lower by
35% on average due to the time taken by the
older equipment;
•
As the upgrade of the equipment was
accompanied with an in-person training session,
100% of doctors and technicians confirmed that
they were well-equipped for using the new
machine;
•
100% of the doctors and patients reported
overall improvement in the treatment due to
better quality of scans;
•
There was a 25% reduction in scan time,
increasing the capability of the hospital to
take more scans. About 80,000 patients are
estimated to benefit from the upgrade during the
lifespan of the equipment;
•
An increase in revenue of ` 3.5 lakh was reported
by the hospital from the use of the upgraded
equipment between July 2023 to March 2024, and
which was being utilized for providing subsidized
treatment to underprivileged patients.
2.
Impact assessment of funds provided to
patients for cancer treatment through the
Indian Cancer Society
ICICI Bank, through its implementing partner, ICICI
Foundation, provided financial assistance to the
Indian Cancer Society (ICS) to treat underprivileged
patients
diagnosed
with
any
treatable/early
detected cancer. Financial assistance aggregating
` 86.3 million was provided to 1,139 patients during
fiscal 2023, of which 66% were women. The coverage
was across 16 hospitals in 14 states. Key findings
from the interviews conducted of patients, doctors
and the ICS were:
•
More than 87% of the patients faced financial
difficulties and emphasized the importance of
financial assistance to help them with affordable
treatment;
•
75% patients reported that they received the
funds at the right time to start the treatment;
•
87% of the patients reported that they were able
to complete the treatment from the financial
assistance provided;
•
53% of the patients seeking financial aid from
hospitals supported by ICS were funded by ICICI
Foundation;
•
Majority of the patients that received funds
for cancer treatment were from low-income
background, underscoring the relevance of the
financial assistance.
3.
Impact assessment of cancer treatment
equipment
provided
to
Cachar
Cancer
Hospital and Research Centre, Silchar, Assam
In fiscal 2023, the Bank had provided cancer care
equipment - Surgical CO2, comprehensive Endoscopy
Station, and Micro Laryngeal Surgery set - to Cachar
Cancer Hospital and Research Centre amounting
to ` 10.1 million. The objective was to enhance the
treatment facilities and enable better and accurate
diagnosis and enhancing the cancer treatment
facilities for patients. Interviews were conducted
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118 | Annual Report 2023-24
of doctors, technicians, administrative staff and
patients, based on a selected sample.
Key findings of the study were:
•
100% of the doctors reported that the hospital
was facing challenges in diagnosing and treating
patients with laryngeal cancers and providing
timely interventions for those at risk of aspiration
and associated pneumonia with head and neck
cancer, before procuring the equipment;
•
80% doctors reported that the cost of treatment
had reduced after the procurement of the
equipment as it helped in early and better
detection and in reducing the requirement for
sophisticated treatment;
•
Over 275 patients benefited from the equipment
between July 2023 and March 2024;
•
Doctors and technicians stated that the
equipment were in good condition of use and
were procured as per National Accreditation
Board for Hospitals (NABH) standards;
•
Patients receiving cancer treatment over the past
few years mentioned that they were satisfied
with the overall process, facility and treatment
provided by the hospital.
4.
Impact assessment of CT scan machine
provided to Indo-Tibetan Border Police
(ITBP) Force Composite Hospital, Dehradun,
Uttarakhand
The ITBP Composite Hospital in Dehradun serves as
a crucial medical facility for para military forces, their
families, and civilians in border areas. The hospital
faced a gap in medical infrastructure, particularly
the absence of a CT scan machine. Recognizing this
critical need, ICICI Bank, through its implementation
agency, ICICI Foundation, provided a state-of-the-
art CT scan equipment amounting to ` 16.7 million
to the hospital in fiscal 2023. The impact assessment
utilized a mixed-method approach involving primary
and secondary research, including interviews of
patients and key hospital staff members.
Key findings of the study were as follows:
•
The introduction of the CT scan machine
improved healthcare services for both, civilians
and armed forces personnel, and led to increase
in patient flow and reduction in referrals,
resulting in improved diagnostic accuracy and
efficiency;
•
The CT scan equipment made diagnostic
services more accessible to economically
disadvantaged individuals;
•
The equipment led to significant cost savings for
both the hospital and patients. The availability
of an in-house CT scan, being more convenient
and economical, has alleviated financial burden
of patients;
•
The Social Return on Investment (SROI) from the
support provided by the Bank is significant with
every ` 1.00 invested contributing to a social
return of ` 4.00 over a 10-year period.
5.
Impact assessment of cancer care equipment
provided to Mahamana Pandit Madan Mohan
Malviya Cancer Centre (MPMMMCC) Hospital,
Varanasi, Uttar Pradesh
MPMMMCC, established under the Tata Memorial
Centre, is dedicated to providing comprehensive
cancer care services, offering affordable and
advanced cancer treatment to the people of
Purvanchal and adjoining regions. To strengthen the
infrastructure at the hospital, the Bank through its
implementation agency, ICICI Foundation, provided
cancer care equipment, namely, Radio Frequency
Ablation Machine (RITA System), Ultrasound System
and Digital Subtraction Angiography (DSA) machine
to the hospital at a total cost of ` 87.7 million.
Key findings of the study were as follows:
•
The implementation of advanced radiology
equipment(s)
and
services
has
led
to
enhancement in efficiency and quality within the
Radiology Unit of the hospital. Key improvements
include
the
introduction
of
Percutaneous
Transhepatic Biliary Drainage (PTBD) services,
addressing a critical gap in palliative care for
patients with biliary obstructions;
•
The intervention has led to a 25% reduction
in patient expenses and equipment operation
costs;
•
The impact on patient treatment outcomes
showed an approximately 80% reduction
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in waiting and treatment time for those
needing DSA systems, 35% reduction for
Radio Frequency Ablation machines and 25%
reduction for ultrasound systems;
•
SROI analysis suggests that an investment of
` 1 by ICICI Bank contributes to a social return
of ` 153 over a 10-year period. The high return
reflected the critical nature of the intervention in
providing health services in one of the poorest
and densely populated regions of the country.
6.
Impact assessment of waste collection
vehicles provided to Gorakhpur Municipal
Corporation, Uttar Pradesh
Under this project, ICICI Foundation provided
specialized garbage collection vehicles, at a total
cost of ` 26.6 million, one each for the 40 wards of
Gorakhpur Municipal Corporation. These vehicles
were fitted with waste segregation facilities and
were provided to enhance the waste management
infrastructure and services across the city. ICICI
Foundation
also
participated
in
awareness
programmes
and
campaigns
along
with
the
Gorakhpur Municipal Corporation within these wards.
Some key insights from the project were:
•
The project led to extension of waste collection
services to previously underserved areas,
covering an additional 14,000 households,
representing an 8% increase in service reach;
•
The
introduction
of
specialized
garbage
collection vehicles resulted in a marked decline
in open littering within their operational areas;
•
The
project
also
yielded
favourable
environmental and health outcomes, with
79% of the residents expressing confidence in
its positive impact on cleanliness within their
respective wards over the past year;
•
The initiative led to improved awareness and
adoption of responsible waste management
habits at the source. It also led to a significant
improvement in community awareness on waste
segregation;
•
The initiative also resulted in a shift towards
improved
waste
segregation
practices
at
the household level, with the proportion of
households engaging in segregation rising from
38% to 67%;
•
Some of the garbage collection vehicles
experienced
occasional
breakdowns
which
added to the maintenance costs for the
Municipality.
7.
Impact assessment of solar power installation
at Dr. Shroff’s Charity Eye Hospital, Lakhimpur
Kheri, Uttar Pradesh
Dr. Shroff’s Charity Eye Hospital (SCEH) has been
providing opthalmic care services to the poor free
of cost or at subsidized rates. However, in areas
like Lakhimpur Kheri, there are also challenges with
availability of electricity. With an objective to address
this need, ICICI Foundation funded the installation of
a 240 KWp solar power unit with 220 KWp on-grid
solutions and 20 KWp off-grid solutions amounting
to ` 15.9 million at SCEH. The unit had an integrated
DG power system, an innovation that allowed power
back-ups. The project goal was to support the
hospital in switching to clean energy and reducing its
operational cost, thus providing affordable eye care to
the poor and vulnerable segments of the population.
The impact assessment focused on understanding
the relevance and effectiveness of the intervention.
Key findings of the study were:
•
The solar installation led to reduction in electricity
expenditure of the hospital by 38.3%, compared
to pre-installation period;
•
The project also led to a 50.5% reduction in diesel
consumption by the hospital from May 2022 to
August 2023;
•
Due to the decrease in diesel usage, there
was a 58.1% reduction in carbon emissions in
February 2024 as compared to May 2022, the
baseline month;
•
There was a significant improvement in service
delivery, staffing, and hospital infrastructure as
a result of the reduction in energy expenditure;
•
The project also led to a reduction in per‑patient
energy cost from ` 133 before the solar
installation to ` 72 in February 2024.
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120 | Annual Report 2023-24
8.
Impact assessment of education grants
provided to children of ex-servicemen and
war widows through the Kendriya Sainik
Board
Under this project, ICICI Foundation donated
` 20.0 million to the Armed Forces Flag Day Fund
(AFFDF) that was established for the welfare of
veterans, martyrs, and their dependents. This
contribution
was
specifically
allocated
as
an
education support for the wards of veterans and
army widows from the non-commissioned officer’s
category. A monthly support of ` 1,000 per child for
a maximum of two children was provided to 1,668
families.
The key findings were:
•
The project had a positive impact on assisting
Ex-Servicemen (ESM) and army widows in
overcoming financial obstacles related to their
children's education;
•
45.7% of the respondents earned less than
` 3 lakh annually, while 47.8% earned between
` 3 lakh and ` 6 lakh;
•
Half of the beneficiaries support one or more
elderly dependents; 23.9% support one elderly
person, and 26.1% support two elderly people;
•
For 19.6% of the beneficiaries, the education
grant covered 75% to 100% of annual education
expenses, including tuition fees, uniforms, study
materials, transport, and other costs. It fully
covered expenses for 8.7% of the recipients;
•
A large proportion, 91.3% of beneficiaries, used
the education support to pay for tuition fees.
67.4% could purchase study material with the
support, and 15.2% utilized it for transportation
expenses.
9.
Impact assessment of training infrastructure
for enabling piped water supply to homes in
Bihar
The Bank, through its implementation partner, ICICI
Foundation, has provided infrastructure support in
the form of a training centre including digital training
resources and mobile training vans equipped with
essential plumbing tools and water testing kits
costing ` 11.8 million. This was provided to the
Public Health Engineering Department (PHED) in
Bihar. The objective was to enhance the reach of the
government’s 'Har Ghar Nal Ka Jal' Scheme that aims
to provide universal access to safe drinking water to
every household in the state, particularly focusing on
marginalised communities.
Key findings of the study were:
•
Around 175 people were trained between
April-December 2023 at the training centre
through various capacity-building workshops
and seminars, which included employees of
PHED like the Chief Engineer, engineers &
supervisors and trainers;
•
The mobile training vans benefitted close to
18,000 individuals across nine districts, by
receiving training in their local area;
•
Practical sessions conducted directly in the field
enabled the participants to apply their training
immediately to address local water management
and plumbing issues;
•
Respondents
expressed
that
the
toolkits
provided in the mobile training units were
thoughtfully assembled to meet the specific
needs of mobile training;
•
Respondents appreciated the state-of-the-art
classroom setup and the inclusion of essential
tools for hands-on learning. The availability
of a mini water testing lab and sustainable
energy solutions, like the 6KW solar panel, were
also noted as significant enhancements that
contributed to a better learning environment;
•
The project extended the reach of training to
remote and underserved communities especially
the marginalized communities.
10. Impact assessment of ICICI Bank’s financial
inclusion programme
The financial inclusion programme of the Bank
focusses on improving digital access to banking
services for the rural people. The programme,
implemented
through
business
correspondents,
(BCs) has enabled rural families to save money
and access government services, while bringing
a positive change in terms of savings. The total
investment by ICICI Bank for this initiative amounted
to ` 55.1 million. The agency adopted a two-pronged
approach which included a review of secondary data
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Financial Statements
sources and literature and primary data obtained
from quantitative and qualitative methods of data
collection.
The key findings of the study were:
•
77%
beneficiaries
agreed
on
increased
awareness of financial services through the
programme;
•
90% beneficiaries confirmed a reduction in travel
distance to access financial services;
•
72% beneficiaries started saving every three
months, while 72% had insurance coverage;
•
84% of the surveyed beneficiaries acknowledged
the importance of financial inclusion, suggesting
a recognition of its role in economic stability and
individual empowerment.
11. Impact assessment of ICICI Bank’s social
awareness programme
The social awareness programme of the Bank aims
at fostering knowledge and encouraging positive
behavioural shifts among people. In fiscal 2023,
strategic placement of digital signages amounting
to ` 349.8 million were undertaken to display
relevant social messages. The project spanned 25
locations across Ahmedabad, Delhi, and Mumbai.
The digital screens display diverse messages on
social awareness topics such as road safety, health,
sanitation, and environmental conservation practices.
Some key insights of the assessment were:
•
68% of respondents rated the messages
displayed on LED screens as either "moderately
effective" or "very effective" in promoting
behaviours conducive to sustainability;
•
85% of respondents expressed a high probability
of sharing the messages displayed on the LED
boards with peers;
•
The daily effective circulation (DEC), which is
the average number of people passing by, was
observed to be more than 5 million. This implied
an annual visibility impression of 600 million;
•
The messages promoted seven UN Sustainable
Development Goals (SDGs) of 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. 68% of respondents
rated the performance of the digital screens as
either "Excellent" or "Good”;
•
A recommendation by the agency was to install
bigger or different size boards in heavy traffic
areas to improve visibility and effectiveness of
the social message.
12. Impact assessment of ICICI Bank’s fraud
awareness campaign undertaken in fiscal
2022
As part of an initiative to promote safe banking
practices, ICICI Bank launched a campaign to create
public awareness about three prevalent cyber frauds,
namely UPI Pin Fraud, QR Code Fraud and Lottery
Fraud. The campaign was launched in multiple
languages through various mediums such as social
media, website, mass media (TV advertisements)
and through direct email communication. The total
investment by ICICI Bank for this initiative amounted
to ` 86.0 million. To understand the impact of the
campaign, a study was undertaken through a survey
of 900 individuals.
Key findings of the survey were:
•
More than 80% of the respondents were able to
recall the campaign displaying a strong recall
value of the public awareness advertisements;
•
A significant majority of respondents became
alert to fraudulent activities after watching the
campaign. Notably, 70% of respondents shared
information about these frauds within their social
circles, while 61% actively engaged by sharing
it on social media platforms, indicating the
campaign's ability to spur proactive awareness
and action;
•
The Fraud awareness campaign has also
been effective in raising awareness of key safe
banking practices. All the four safe banking
practices highlighted in the campaign, namely,
not sharing sensitive information, not clicking
on suspicious links/downloading attachments,
never responding to unknown lottery messages
and never entering UPI PIN to receive money,
appeared among the top five most known safe
banking practices among those exposed to
the campaign.
122 | Annual Report 2023-24
CERTIFICATE ON COMPLIANCE OF CONDITIONS OF 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
financial year ended March 31, 2024, as prescribed in Regulations 17 to 27, clauses (b) to (i) and (t) of sub-regulation
(2) of Regulation 46 of Chapter IV and Paras C, D and E of Schedule V of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time. (“SEBI Listing
Regulations”).
We state that the compliance of conditions of Corporate Governance is the responsibility of the management and our
examination was limited to procedures and implementation process thereof adopted by the Bank for ensuring the
compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the
Financial Statements of the Bank.
We have examined the relevant records and documents maintained by the Bank for the purpose of providing reasonable
assurance and certifying on the compliance with Corporate Governance requirements by the Bank.
In our opinion and to the best of our information and according to the explanations and information furnished to us we
certify that the Bank has complied with the conditions of Corporate Governance as stipulated in the aforesaid provisions
of the SEBI Listing Regulations.
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.
Place : Mumbai
ALWYN JAY & Co.
Date : June 28, 2024
Company Secretaries
Office Address :
[Alwyn D’Souza, FCS.5559]
Annex-103, Dimple Arcade,
[Partner]
Asha Nagar, Kandivali (East),
[Certificate of Practice No.5137]
Mumbai 400101.
[UDIN : F005559F000633714]
CERTIFICATE ON CORPORATE GOVERNANCE
Annual Report 2023-24 | 123
Integrated Report
Statutory Reports
Financial Statements
MANAGEMENT DISCUSSION & ANALYSIS
OPERATING ENVIRONMENT
Global growth momentum is expected to slow from 3.2%
year-on-year in calendar year 2023 to 3.0% in calendar
year 2024 led primarily by softer growth prospects in
Europe and China. The US economy is showing continued
resilience and is expected to grow above its trend pace.
The moderate softening in global growth reflects the
ongoing lagged effect of restrictive monetary policy
weighing on demand, however a recession is unlikely.
At the same time, headline inflation could continue to
moderate. The persistence of services inflation could limit
the scale of disinflation over fiscal 2024 as compared to
that witnessed over H2-2023. Developed Market (DM)
central banks are poised to ease policy with the European
Central Bank (ECB) and Bank of England (BoE) expected
to lead Federal Reserve Open Market Committee (FOMC)
in commencing easing policy. Risks to the global growth
outlook are to the downside, including a further escalation
in geo-political tensions that pushes global energy prices
sharply higher and monetary policy working to reduce
inflation and compress growth much more than assumed.
Growth
In Q4-2024, India’s real Gross Value Added (GVA) grew
6.5% year-on-year, while Gross Domestic Product (GDP)
grew by 7.8% year-on-year led by lower subsidy payout.
Given government infra spending, corporate capex cycle
and real estate investment by households, we should see
investment to remain the key driver of India’s growth in
coming years. Services demand is buoyant on the back
of travel, real estate and financial services. Growth for
fiscal 2024 has been revised higher at 8.2% year-on-year
from 7.6% earlier. The upward revision is led by Q4-2024
GDP growth coming in far stronger than earlier estimated
(lower subsidy payout).
Inflation
Inflation, as measured by the Consumer Price Index
(CPI), softened from 5.7% year-on-year in March 2023
to 4.9% year-on-year in March 2024, compared to an
average inflation of 5.4% year-on-year in fiscal 2024.
Food inflation on the other hand rose to 7.7% year-on-
year, while core inflation was lower at 3.2% year-on-year.
The most important factor working in favour of inflation
is the easing core inflation. Given the above backdrop CPI
inflation is expected to average 4.5% for the year.
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, since then till the last MPC
held in April 2024, the policy rate and the policy stance
has been kept unchanged. The Reserve Bank of India
(RBI) announced various measures to manage the
liquidity conditions. For example, the RBI had announced
a temporary incremental Cash Reserve Ratio (CRR) rate of
10.0% on the incremental deposits between May 19, 2023
and July 28, 2023. The same was reversed by October 7,
2023. Further, the RBI also announced that it would conduct
Open Market Operation (OMO) sales to manage liquidity
conditions. System liquidity reduced from an average
of ` 25.0 billion in the month of March 2023 to ` -434.0
billion in March 2024. The transmission of monetary policy
resulted in an increase in interest rates in the banking
system. Between April 2023 and February 2024, the
Weighted Average Lending Rate (WALR) of commercial
banks on fresh rupee loans increased by 28 basis points.
Since April 2022, the same has increased by 185 basis
points.
Financial markets
During fiscal 2024, the Rupee depreciated by 1.4% from
` 82.18 per USD at March 31, 2023 to ` 83.35 per USD
at March 29, 2024. With the geopolitical tensions in West
Asia, the Rupee touched ` 83.75 per USD at April 17, 2024.
The benchmark S&P BSE Sensex increased by 24.85%
during fiscal 2024 compared to 0.7% in fiscal 2023. The
yields on the benchmark 10-year government securities
was range bound, moving from 7.31% at March 31, 2023
to 7.06% at March 29, 2024, with a highest of 7.38% on
October 9, 2023.
Banking sector trends
Non-food credit of the banking system displayed robust
growth, with growth of 20.2% year-on-year in March 2024
(16.3% year-on-year ex merger) compared to 15.4% year-
on-year in March 2023, with incremental credit growth of
` 22.2 trillion in the period April 2023 to March 2024. The
fortnightly credit outstanding on 5th April showed 19.9%
year-on-year growth (16.1% year-on-year ex merger).
Sectoral break-up of credit data available till March 2024,
credit growth was led by services at 22.9% year-on-year
(20.2% year-on-year ex merger) and personal credit at
27.6% year-on-year (17.7% year-on-year ex merger). In
addition, industry credit also showed an uptick in growth
at 9.0% year-on-year (8.5% year-on-year ex merger).
MANAGEMENT DISCUSSION & ANALYSIS
124 | Annual Report 2023-24
According to RBI’s Financial Stability Report of June 2024,
non-performing assets (NPAs) of scheduled commercial
banks continued to decline in fiscal 2024, with gross NPA
ratio at 2.8% and net NPA ratio at 0.6% at March 31, 2024
compared to a gross NPA ratio of 3.9% and net NPA ratio
of 1.0% at March 31, 2023.
Outlook
The MPC expectedly kept the repo rate unchanged at
the April 2024 review, now for 7th time in a row. The
stance also remained unchanged as ‘withdrawal of
accommodation’. The US Fed is expected to delay its rate
cut cycle, while uncertain geo-political environment poses
an inflationary risk. As a result, RBI’s rate cut cycle is likely
to be delayed from our earlier expectation of October. The
timing of change in stance and policy cut in India remains
contingent upon commodity prices and global monetary
easing cycle.
STRATEGY
In fiscal 2024, 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
segments. The Bank continued to focus on customer
360-degree approach and holistically serving across
ecosystems and micromarkets. The Bank sought to maintain
and enhance its liability franchise. The Bank focused on
maintaining a strong balance sheet, with adequate liquidity,
prudent provisioning and healthy capital adequacy. The
Bank’s capital adequacy ratios were well above regulatory
requirements as of March 31, 2024.
Going forward, the Bank would focus on maximizing the
profit before tax excluding treasury 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 is fostering
a strong risk and compliance culture that underpins
our dealing with customers. The Bank has laid strong
emphasis on continuous strengthening of operational
resilience for seamless delivery of services to customers.
A strong focus was also laid on deepening coverage and
enhancing delivery capabilities while continuing the focus
on risk calibrated profitable growth. We continue to focus
on simplifying banking for improved customer experiences
and enhance customer engagement. 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
28.3% from ` 424.73 billion in fiscal 2023 to ` 544.79
billion in fiscal 2024. Core operating profit (i.e. profit before
provisions and tax, excluding treasury gains) increased
by 18.3% from ` 491.39 billion in fiscal 2023 to ` 581.22
billion in fiscal 2024 primarily due to an increase in net
interest income by ` 121.77 billion and fee income by
` 27.95 billion, offset, in part, by an increase in operating
expenses by ` 62.60 billion. Gain from treasury-related
activities was ` 0.09 billion in fiscal 2024 as compared
to a loss of ` 0.52 billion in fiscal 2023. Provisions and
contingencies (excluding provision for tax) decreased by
45.3% from ` 66.66 billion in fiscal 2023 to ` 36.43 billion
in fiscal 2024. Profit after tax increased from ` 318.96
billion in fiscal 2023 to ` 408.88 billion in fiscal 2024.
Net interest income increased by 19.6% from ` 621.29
billion in fiscal 2023 to ` 743.06 billion in fiscal 2024 due
to an increase in the net interest margin (NIM) and an
increase in the average interest-earning assets.
Fee income increased by 15.5% from ` 180.01 billion in
fiscal 2023 to ` 207.96 billion in fiscal 2024. Dividend
from subsidiaries/joint ventures/associates increased by
16.2% from ` 17.84 billion in fiscal 2023 to ` 20.73 billion
in fiscal 2024. Operating expenses increased by 19.0%
from ` 328.73 billion in fiscal 2023 to ` 391.33 billion in
fiscal 2024.
Provisions and contingencies (excluding provision for
tax) decreased by 45.3% from ` 66.66 billion in fiscal
2023 to ` 36.43 billion in fiscal 2024 primarily due to a
decrease in contingency provision made on a prudent
basis and provision for investments, offset, in part, by
an increase in provisions for non-performing and other
assets and provision for standard assets. Provision for
non-performing and other assets was ` 9.45 billion in
fiscal 2024 as compared to a write-back of ` 6.23 billion
in fiscal 2023. During fiscal 2024, there were higher net
additions to non-performing loans primarily in retail and
rural loans, offset, in part, by recoveries and upgrades in
non-retail loans.
The provision coverage ratio on NPAs decreased from
82.8% at March 31, 2023 to 80.3% at March 31, 2024.
MANAGEMENT DISCUSSION & ANALYSIS
Annual Report 2023-24 | 125
Integrated Report
Statutory Reports
Financial Statements
During fiscal 2023, the Bank had made an additional
contingency provision ` 56.50 billion on a prudent basis.
The Bank held contingency provision of ` 131.00 billion at
March 31, 2024.
The income tax expense increased from ` 105.25 billion in
fiscal 2023 to ` 136.00 billion in fiscal 2024. The effective
tax rate increased from 24.8% in fiscal 2023 to 25.0%
in fiscal 2024 primarily due to change in composition of
income.
Net worth increased by 18.8% from ` 2,007.16 billion at
March 31, 2023 to ` 2,383.99 billion at March 31, 2024
primarily due to accretion to reserves out of retained profit,
offset, in part, by payment of dividend for fiscal 2023.
Total assets increased by 18.1% from ` 15,842.07 billion
at March 31, 2023 to ` 18,715.15 billion at March 31, 2024.
Total advances increased by 16.2% from ` 10,196.38
billion at March 31, 2023 to ` 11,844.06 billion at March 31,
2024 primarily due to an increase in domestic advances
by 16.8%. Total investments increased by 27.5% from
` 3,623.30 billion at March 31, 2023 to ` 4,619.42 billion
at March 31, 2024. Cash and cash equivalents increased
by 17.2% from ` 1,194.38 billion at March 31, 2023 to
` 1,399.26 billion at March 31, 2024.
The
weighted
average
high-quality
liquid
assets
maintained during the three months ended March 31, 2024
were ` 3,940.11 billion (three months ended March 31,
2023: ` 3,234.60 billion). The average liquidity coverage
ratio was 122.84% for the three months ended March 31,
2024 as against the requirement of 100.00%.
Total deposits increased by 19.6% from ` 11,808.41 billion
at March 31, 2023 to ` 14,128.25 billion at March 31, 2024.
Term deposits increased by 27.7% from ` 6,395.79 billion
at March 31, 2023 to ` 8,169.53 billion at March 31, 2024.
Current and savings account (CASA) deposits increased
by 10.1% from ` 5,412.62 billion at March 31, 2023 to
` 5,958.72 billion at March 31, 2024. Average CASA
deposits increased by 6.5% from ` 4,758.90 billion in
fiscal 2023 to ` 5,067.47 billion in fiscal 2024. Borrowings
increased by 4.7% from ` 1,193.25 billion at March 31,
2023 to ` 1,249.68 billion at March 31, 2024.
The Bank had a business center (branch) network of
6,523 branches, and network of 17,190 ATMs/CRMs at
March 31, 2024.
The Bank is subject to Basel III capital adequacy guidelines
stipulated by RBI. The total capital adequacy ratio of
the Bank at March 31, 2024 (after deducting proposed
dividend for fiscal 2024 from capital funds) in accordance
with RBI guidelines on Basel III was 16.33% as compared
to 18.34% at March 31, 2023. The Tier-1 capital adequacy
ratio was 15.60% at March 31, 2024 as compared to
17.60% at March 31, 2023. The Common Equity Tier 1
(CET-1) ratio was 15.60% at March 31, 2024 as compared
to 17.12% at March 31, 2023.
OPERATING RESULTS DATA
The following table sets forth, for the periods indicated, the operating results data.
` in billion, except percentages
Particulars
Fiscal 2023
Fiscal 2024
% change
Interest income
1,092.31
1,428.91
30.8
Interest expense
471.02
685.85
45.6
Net interest income
621.29
743.06
19.6
Fee income1
180.01
207.96
15.5
Dividend from subsidiaries/joint ventures/associates
17.84
20.73
16.2
Other income
0.98
0.80
(18.4)
Core operating income
820.12
972.55
18.6
Operating expenses
328.73
391.33
19.0
Core operating profit
491.39
581.22
18.3
Treasury gains
(0.52)
0.09
-
Operating profit
490.87
581.31
18.4
Provisions, net of write-backs
66.66
36.43
(45.3)
Profit before tax
424.21
544.88
28.4
Tax, including deferred tax
105.25
136.00
29.2
Profit after tax
318.96
408.88
28.2
1 Includes merchant foreign exchange income, income on customer derivative transactions and income on sale of priority sector lending
certificates (PSLCs).
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.
MANAGEMENT DISCUSSION & ANALYSIS
126 | Annual Report 2023-24
Key ratios
The following table sets forth, for the periods indicated, the key financial ratios.
Particulars
Fiscal 2023
Fiscal 2024
Return on average equity (%)1
17.28
18.71
Return on average assets (%)2
2.16
2.37
Net interest margin (%)
4.48
4.53
Cost to income (%)3
40.11
40.23
Provisions to core operating profit (%)
13.57
6.27
Earnings per share (`)
45.79
58.38
Book value per share (`)
287.44
339.49
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.
Net interest income and spread analysis
The following table sets forth, for the periods indicated, the net interest income and spread analysis.
` in billion, except percentages
Particulars
Fiscal 2023
Fiscal 2024
% change
Interest income
1,092.31
1,428.91
30.8
Interest expense
471.02
685.85
45.6
Net interest income
621.29
743.06
19.6
Average interest-earning assets
13,872.53
16,412.08
18.3
Average interest-bearing liabilities
11,998.16
14,121.39
17.7
Net interest margin
4.48%
4.53%
-
Average yield
7.87%
8.71%
-
Average cost of funds
3.93%
4.86%
-
Interest spread
3.94%
3.85%
-
1 All amounts have been rounded off to the nearest ` 10.0 million.
Net interest income increased by 19.6% from ` 621.29 billion in fiscal 2023 to ` 743.06 billion in fiscal 2024 primarily
due to an increase in the net interest margin by 5 basis points and an increase of 18.3% in the average interest-
earning assets.
Net interest margin increased by 5 basis points from 4.48% in fiscal 2023 to 4.53% in fiscal 2024. The loan book of
the Bank got repriced faster because of higher proportion of repo and other floating rate linked book, while the cost
of deposits increased with a lag given the fixed rate nature of the term deposit book. As a result, the net interest
margin increased from 3.96% in fiscal 2022 to 4.48% in fiscal 2023 and to 4.53% in fiscal 2024. Net interest margin
was 4.01% in Q1-2023 and started increasing from Q2-2023, peaking at 4.90% in Q4-2023. The net interest margin
thereafter starting declining, reflecting the peaking of asset yields and rise in deposit cost to 4.40% in Q4-2024.
MANAGEMENT DISCUSSION & ANALYSIS
Annual Report 2023-24 | 127
Integrated Report
Statutory Reports
Financial Statements
The following table sets forth, for the periods indicated, the trend in yield, cost, spread and margin.
Particulars
Fiscal 2023
Fiscal 2024
Yield on interest-earning assets
7.87%
8.71%
- On advances
8.94
9.83
- On investments
6.57
7.18
- On SLR investments
6.62
7.16
- On other investments
6.16
7.34
- On other interest-earning assets
3.38
2.90
Cost of interest-bearing liabilities
3.93
4.86
- Cost of deposits
3.66
4.61
- Current and savings account (CASA) deposits
2.28
2.24
- Term deposits
4.78
6.21
- Cost of borrowings
5.97
6.86
Interest spread
3.94
3.85
Net interest margin
4.48%
4.53%
The yield on average interest-earning assets increased
by 84 basis points from 7.87% in fiscal 2023 to 8.71% in
fiscal 2024 primarily due to the following factors:
•
The yield on domestic advances increased by 77
basis points from 9.16% in fiscal 2023 to 9.93% in
fiscal 2024. The yield on advances increased primarily
due to full impact of 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 49%
had interest rate linked to repo rate, 32% had fixed
interest rates, 17% had interest rate linked to MCLR
and other older benchmarks and 2% had interest rate
linked to other external benchmarks.
The Bank’s 1-year MCLR increased by 150 basis
points in phases during FY2023 and by 35 basis points
in phases during FY2024 from 8.75% in March 2023
to 9.10% in January 2024. RBI increased the repo
rate by 250 basis points from 4.00% in May 2022
to 6.50% in February 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 285
basis points from 3.90% in fiscal 2023 to 6.75% in
fiscal 2024 primarily due to repricing of floating rate
advances and new lending at higher rates on account
of the rate hike by the US Federal Reserve. The yield
on overseas advances was also positively impacted
due to higher interest collection on NPAs during the
fiscal 2024.
The yield on average interest-earning assets increased by 84 basis points from 7.87% in fiscal 2023 to 8.71% in fiscal
2024 primarily due to an increase in yield on average advances and investments and an increase in proportion of
average advances. The cost of funds increased by 93 basis points from 3.93% in fiscal 2023 to 4.86% in fiscal 2024
primarily due to an increase in cost of term deposits. The interest spread decreased by 9 basis points from 3.94% in
fiscal 2023 to 3.85% in fiscal 2024.
MANAGEMENT DISCUSSION & ANALYSIS
128 | Annual Report 2023-24
The overall yield on average advances increased by 89
basis points from 8.94% in fiscal 2023 to 9.83% in fiscal
2024.
•
The yield on average interest-earning investments
increased by 61 basis points from 6.57% in fiscal
2023 to 7.18% in fiscal 2024. The yield on Indian
government investments increased by 54 basis points
from 6.62% in fiscal 2023 to 7.16% in fiscal 2024.
This was primarily due to reset of yields on floating
rate bonds linked to treasury bills (T-bills) at higher
rates pursuant to a significant increase in treasury bill
yields, and new investment in government securities
at higher market yields (both to replace maturing
securities and as fresh purchases).
The yield on non-SLR investments increased by 118
basis points from 6.16% in fiscal 2023 to 7.34% in
fiscal 2024 primarily due to an increase in yield on
pass through certificates, commercial paper, foreign
government securities and an increase in proportion
of average pass through certificates.
•
The yield on other interest-earning assets decreased
by 48 basis points from 3.38% in fiscal 2023 to 2.90%
in fiscal 2024. The decrease was primarily due to a
decrease in income on funding swaps, a decrease in
average interest earning LAF (Liquidity Adjustment
Facility) lending to RBI and an increase in average
balance with RBI, which does not earn any interest.
The decrease in yield on other interest-earning assets
was offset, in part, by an increase in yield on call and
term money lent and an increase in yield on balance
with other banks.
Interest on income tax refund increased from ` 1.14
billion in fiscal 2023 to ` 2.65 billion in fiscal 2024.
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 93 basis points from
3.93% in fiscal 2023 to 4.86% in fiscal 2024 primarily
due to the following factors:
•
The cost of average deposits increased from 3.66% in
fiscal 2023 to 4.61% in fiscal 2024 primarily due to an
increase in cost of domestic term deposits. The cost of
domestic term deposits increased by 142 basis points
from 4.80% in fiscal 2023 to 6.22% in fiscal 2024
primarily due to repricing of deposits at higher rates,
offset, in part, by benefit of pre-mature withdrawals
of existing deposits which were re-invested by
customers at the new higher rates. 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.
The cost of savings account deposits increased
marginally from 3.16% in fiscal 2023 to 3.17% in
fiscal 2024. The average CASA deposits decreased
from 44.7% of total average deposits in fiscal 2023
to 40.4% of total average deposits in fiscal 2024.
Average CASA deposits were 35.9% of the total
funding (i.e., deposits and borrowings) for fiscal 2024
as compared to 39.7% for fiscal 2023.
•
The cost of borrowings increased by 89 basis points
from 5.97% in fiscal 2023 to 6.86% in fiscal 2024. The
cost of domestic borrowings increased by 28 basis
points from 6.66% in fiscal 2023 to 6.94% in fiscal
2024 primarily due to an increase in cost of refinance
borrowings, call money borrowings and inter-
bank participatory certificates, offset, in part, by a
decrease in proportion of average bond borrowings.
The cost of overseas borrowings increased by 287
basis points from 3.29% in fiscal 2023 to 6.16% in
fiscal 2024 primarily due to an increase in cost of
term borrowings, bond borrowings and an increase in
cost of margin deposit received for treasury products.
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 loans, regulatory developments,
monetary policy and economic and geopolitical factors.
Interest rates on about 51% 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.
MANAGEMENT DISCUSSION & ANALYSIS
Annual Report 2023-24 | 129
Integrated Report
Statutory Reports
Financial Statements
The following table sets forth, for the period indicated, the trend in average interest-earning assets and average interest-
bearing liabilities:
` in billion, except percentages
Particulars
Fiscal 2023
Fiscal 2024
% change
Advances1
9,390.62
11,283.57
20.2
Interest-earning investments2
3,180.93
3,987.01
25.3
Other interest-earning assets
1,300.98
1,141.50
(12.3)
Total interest-earning assets
13,872.53
16,412.08
18.3
Deposits
10,634.91
12,557.61
18.1
Borrowings1,2
1,363.25
1,563.78
14.7
Total interest-bearing liabilities
11,998.16
14,121.39
17.7
1 Average borrowing and average advances have been grossed up for average participation certificate and average bills rediscounting.
2 Average investments and average borrowings include average short-term repurchase transactions.
3 All amounts have been rounded off to the nearest ` 10.0 million.
The average interest-earning assets increased by 18.3%
from ` 13,872.53 billion in fiscal 2023 to ` 16,412.08 billion
in fiscal 2024 due to an increase in average advances by
` 1,892.95 billion and average investments by ` 806.08
billion, offset, in part, by a decrease in average other
interest-earning assets by ` 159.48 billion.
Average advances increased by 20.2% from ` 9,390.62
billion in fiscal 2023 to ` 11,283.57 billion in fiscal 2024 due
to an increase of 21.5% in average domestic advances,
offset, in part, by a decrease of 10.5% in average overseas
advances.
Average interest-earning investments increased by 25.3%
from ` 3,180.93 billion in fiscal 2023 to ` 3,987.01 billion
in fiscal 2024 Average interest-earning investments in
Indian government securities increased by 23.1% from
` 2,809.55 billion in fiscal 2023 to ` 3,459.66 billion in fiscal
2024. Average interest-earning non-SLR investments
increased from ` 371.38 billion in fiscal 2023 to ` 527.35
billion in fiscal 2024.
Average other interest-earning assets decreased by
12.3% from ` 1,300.98 billion in fiscal 2023 to ` 1,141.50
billion in fiscal 2024 primarily due to a decrease in call and
term 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 17.7%
from ` 11,998.16 billion in fiscal 2023 to ` 14,121.39 billion
in fiscal 2024 primarily due to an increase in average
deposits by ` 1,922.70 billion and an increase in average
borrowings by ` 200.53 billion.
Average deposits increased by 18.1% from ` 10,634.91
billion in fiscal 2023 to ` 12,557.61 billion in fiscal 2024
due to an increase in average term deposits and average
CASA deposits.
Average borrowings increased by 14.7% from ` 1,363.25
billion in fiscal 2023 to ` 1,563.78 billion in fiscal 2024
primarily due to an increase in refinance borrowings and
inter-bank participatory certificates, offset, in part, by a
decrease in subordinated bonds.
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 commercial
banking fees such as loan processing fees and transaction
banking fees, income from foreign exchange transactions
and margin on derivative transactions.
Fee income increased by 15.5% from ` 180.01 billion in
fiscal 2023 to ` 207.96 billion in fiscal 2024 primarily due
to an increase in payment and cards fees, income from
forex and derivatives products, lending linked fees and
commercial banking fees.
DIVIDEND FROM SUBSIDIARIES/JOINT
VENTURES/ASSOCIATES
Dividend
from
subsidiaries/joint
ventures/associates
increased by 16.2% from ` 17.84 billion in fiscal 2023 to
` 20.73 billion in fiscal 2024.
MANAGEMENT DISCUSSION & ANALYSIS
130 | Annual Report 2023-24
The following table sets forth, for the periods indicated, the details of dividend received from subsidiaries/joint ventures/
associates:
` in billion
Name of the entity
Fiscal 2023
Fiscal 2024
ICICI Bank Canada
1.06
2.14
ICICI Bank UK PLC
0.80
0.83
ICICI Prudential Life Insurance Company Limited
0.40
0.44
ICICI Lombard General Insurance Company Limited
2.24
2.48
ICICI Prudential Asset Management company Limited
6.22
7.53
ICICI Securities Limited
5.44
5.14
ICICI Securities Primary Dealership Limited
1.36
1.66
ICICI Home Finance Company Limited
0.16
0.30
ICICI Venture Funds Management Company Limited
0.05
0.10
India Infradebt Limited
0.11
0.11
ICICI Prudential Trust Limited1
0.00
0.00
Total
17.84
20.73
1 0.00 represents insignificant amount.
2 All amounts have been rounded off to the nearest ` 10.0 million.
Other income
Other income decreased from ` 0.98 billion in fiscal 2023 to ` 0.80 billion in fiscal 2024.
Operating expenses
The following table sets forth, for the periods indicated, the principal components of operating expenses.
` in billion, except percentages
Particulars
Fiscal 2023
Fiscal 2024
% change
Payments to and provisions for employees
120.60
151.42
25.6
Other administrative expenses
208.13
239.91
15.3
Total operating expenses
328.73
391.33
19.0
1 All amounts have been rounded off to the nearest ` 10.0 million.
Operating expenses primarily include employee expenses,
depreciation on assets and other administrative expenses.
Operating expenses increased by 19.0% from ` 328.73
billion in fiscal 2023 to ` 391.33 billion in fiscal 2024.
Payments to and provisions for employees
Employee expenses increased by 25.6% from ` 120.60
billion in fiscal 2023 to ` 151.42 billion in fiscal 2024
primarily due to an increase in salary cost, provision for
performance bonus and performance-linked retention
pay, offset, in part, by a decrease in provision requirement
for retirement benefit obligations. Salary cost increased
primarily due to annual increments and promotions
and an increase in average staff strength (number of
employees at March 31, 2023: 129,020 and at March 31,
2024: 141,009).
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 15.3% from ` 208.13 billion in fiscal 2023 to
` 239.91 billion in fiscal 2024 primarily due to an increase
in technology related expenses, reward point expenses,
MANAGEMENT DISCUSSION & ANALYSIS
Annual Report 2023-24 | 131
Integrated Report
Statutory Reports
Financial Statements
direct marketing agency expenses and advertisement and
sales promotion 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
Provisions and contingencies (excluding provisions for
tax) decreased from ` 66.66 billion in fiscal 2023 to
` 36.43 billion in fiscal 2024 primarily due to a decrease
in contingency provision made on a prudent basis and
provision for investments, offset, in part, by an increase
in provisions for non-performing and other assets and
provision for standard assets.
Provision for non-performing and other assets was ` 9.45
billion in fiscal 2024 as compared to a write-back of ` 6.23
billion in fiscal 2023. During fiscal 2024, there were higher
net additions to non-performing loans primarily in retail
and rural loans, offset, in part, by recoveries and upgrades
in non-retail loans. 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.
The provision coverage ratio (excluding cumulative
technical/prudential write-offs) on NPAs decreased from
82.8% at March 31, 2023 to 80.3% at March 31, 2024.
funds and security receipts issued by asset reconstruction
companies.
Gain from treasury-related activities was ` 0.09 billion
in fiscal 2024 as compared to a loss of ` 0.52 billion in
fiscal 2023. Treasury income in FY2024 includes transfer
of accumulated translation loss of ` 3.40 billion related to
closure of Bank’s Offshore Banking Unit, SEEPZ Mumbai,
to profit and loss account.
Provision for investments decreased from ` 13.00 billion
in fiscal 2023 to ` 6.89 billion in fiscal 2024. During
fiscal 2024, the Bank made a provision of ` 5.41 billion
on its investments in Alternate Investment Funds (AIFs)
pursuant to RBI guideline dated December 19, 2023 and
provision made on equity shares on conversion of loan.
During fiscal 2023, the Bank primarily made a provision on
equity shares and debentures on conversion of loan and
additional provision made on security receipts.
Provision for standard assets increased from ` 5.80 billion
in fiscal 2023 to ` 11.55 billion in fiscal 2024 primarily due
to an increase in domestic loans and upgrade of stage 3
exposure in overseas location to stage 2. The cumulative
general provision held at March 31, 2024 was ` 58.63
billion (March 31, 2023: ` 47.02 billion).
Other provisions and contingencies decreased from
` 54.09 billion in fiscal 2023 to ` 8.54 billion in fiscal 2024.
During fiscal 2023, the Bank had made an additional
contingency provision ` 56.50 billion on a prudent basis.
The Bank held contingency provision of ` 131.00 billion at
March 31, 2024.
PROVISIONS AND CONTINGENCIES (EXCLUDING PROVISIONS FOR TAX)
The following tables set forth, for the periods indicated, the components of provisions and contingencies.
` in billion, except percentages
Particulars
Fiscal 2023
Fiscal 2024
% change
Provision for non-performing and other assets1
(6.23)
9.45
-
Provision for investments (including credit substitutes) (net)
13.00
6.89
(47.0)
Provision for standard assets
5.80
11.55
99.3
Others2
54.09
8.54
(84.2)
Total provisions and contingencies
(excluding provision for tax)
66.66
36.43
(45.3)
1 Includes restructuring related provision.
2 Includes nil contingency provision during the year ended March 31, 2024 (March 31, 2023: ` 56.50 billion)
3 All amounts have been rounded off to the nearest ` 10.0 million.
MANAGEMENT DISCUSSION & ANALYSIS
132 | Annual Report 2023-24
Total assets of the Bank increased by 18.1% from
` 15,842.07 billion at March 31, 2023 to ` 18,715.15 billion
at March 31, 2024, due to a 27.5% increase in investments,
a 17.2% increase in cash and cash equivalents and a
16.2% increase in advances.
Cash and cash equivalents
Cash and cash equivalents include cash in hand and
balances with RBI and other banks, including money at
call and short notice. Cash and cash equivalents increased
by 17.2% from ` 1,194.38 billion at March 31, 2023 to
` 1,399.26 billion at March 31, 2024 The increase is
primarily due to an increase in balance with RBI, money at
call & short notice in India, SDF (Standing Deposit Facility)
lending to RBI and foreign currency term money lending,
TAX EXPENSE
The income tax expense increased from ` 105.25 billion in fiscal 2023 to ` 136.00 billion in fiscal 2024. The effective tax
rate increased from 24.8% in fiscal 2023 to 25.0% in fiscal 2024 primarily due to change in composition of income.
offset, in part, by a decrease in balance with US Federal
Reserve and term money lending in India.
Investments
Total investments increased by 27.5% from ` 3,623.30
billion at March 31, 2023 to ` 4,619.42 billion at
March 31, 2024. Investments in Indian government
securities
increased
from
`
3,057.69
billion
at
March 31, 2023 to ` 3,755.74 billion at March 31, 2024.
Other investments increased from ` 565.61 billion at
March 31, 2023 to ` 863.68 billion at March 31, 2024
primarily due to an increase in investment in bonds
and debentures, pass through certificates, certificate
of deposits and equity investment in I-Process Services
(India) Private Limited and ICICI Lombard General
Insurance Company Limited.
FINANCIAL CONDITION
Assets
The following table sets forth, at the dates indicated, the principal components of assets.
` in billion, except percentages
Assets
At
March 31, 2023
At
March 31, 2024
% change
Cash and bank balances
1,194.38
1,399.26
17.2
Investments
3,623.30
4,619.42
27.5
-
Government and other approved investments1
3,057.69
3,755.74
22.8
-
Equity investment in subsidiaries
69.78
111.32
59.5
-
Other investments
495.83
752.36
51.7
Advances (net of BRDS/IBPC)2
10,196.38
11,844.06
16.2
-
Domestic
9,855.28
11,509.55
16.8
-
Overseas branches
341.10
334.51
(1.9)
Fixed assets (including leased assets)
96.00
108.60
13.1
Other assets
732.01
743.81
1.6
-
RIDF and other related deposits3
216.22
200.92
(7.1)
Total assets
15,842.07
18,715.15
18.1
1 Banks in India are required to maintain a specified percentage, currently 18.00% (at March 31, 2024), 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.
MANAGEMENT DISCUSSION & ANALYSIS
Annual Report 2023-24 | 133
Integrated Report
Statutory Reports
Financial Statements
At March 31, 2024, the Bank had an outstanding net
investment of ` 0.29 billion in security receipts issued by
asset reconstruction companies as compared to ` 2.11
billion at March 31, 2023.
Advances
Net advances (gross of BRDS/IBPC) increased by 17.3%
from ` 10,345.09 billion at March 31, 2023 to ` 12,137.60
billion at March 31, 2024. Net advances (net of BRDS/
IBPC) increased by 16.2% from ` 10,196.38 billion at
March 31, 2023 to ` 11,844.06 billion at March 31, 2024.
Net domestic advances increased by 16.8% from
` 9,855.28 billion at March 31, 2023 to ` 11,509.55
billion at March 31, 2024 primarily due to an increase
in retail advances. Retail advances increased by 19.4%
from ` 5,578.17 billion at March 31, 2023 to ` 6,662.61
billion at March 31, 2024. Advances of rural business
increased by 17.2% from ` 874.31 billion at March 31,
2023 to ` 1,024.46 billion at March 31, 2024. The business
banking portfolio increased by 29.3% from ` 721.12 billion
at March 31, 2023 to ` 932.28 billion at March 31, 2024.
SME advances increased by 24.6% from ` 482.21 billion at
March 31, 2023 to ` 600.95 billion at March 31, 2024. The
domestic corporate portfolio increased by 10.0% year-on-
year.
Net advances of overseas branches decreased by 1.9%
from ` 341.10 billion at March 31, 2023 to ` 334.51 billion
at March 31, 2024.
Fixed and other assets
Fixed assets (net block) increased by 13.1% from ` 96.00
billion at March 31, 2023 to ` 108.60 billion at March 31,
2024.
Other assets increased by 1.6% from ` 732.01 billion at
March 31, 2023 to ` 743.81 billion at March 31, 2024
primarily due to an increase in interest accrued on loans
and investments and margin deposit paid for treasury
products, offset, in part, by a decrease in RIDF and other
related deposits and mark-to-market on foreign exchange
and derivative transactions. 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’.
Liabilities
The following table sets forth, at the dates indicated, the principal components of liabilities (including capital and reserves).
` in billion, except percentages
Liabilities
At
March 31, 2023
At
March 31, 2024
% change
Equity share capital
21.58
28.10
30.2
Reserves
1,985.58
2,355.89
18.6
Deposits
11,808.41
14,128.25
19.6
-
Savings deposits
3,797.76
4,023.00
5.9
-
Current deposits
1,614.86
1,935.72
19.9
-
Term deposits
6,395.79
8,169.53
27.7
Borrowings (excluding subordinated debt)
1,110.44
1,221.18
10.0
-
Domestic
852.30
925.46
8.6
-
Overseas branches
258.14
295.72
14.6
Subordinated debt (included in Tier-1 and Tier-2 capital)
82.81
28.50
(65.6)
Other liabilities
833.25
953.23
14.4
Total liabilities
15,842.07
18,715.15
18.1
1 All amounts have been rounded off to the nearest ` 10.0 million.
MANAGEMENT DISCUSSION & ANALYSIS
134 | Annual Report 2023-24
Total liabilities (including capital and reserves) increased
by 18.1% from ` 15,842.07 billion at March 31, 2023 to
` 18,715.15 billion at March 31, 2024, due to a 19.6%
increase in deposits, a 18.8% increase in net worth and a
14.4% increase in other liabilities.
Deposits
Deposits increased by 19.6% from ` 11,808.41 billion at
March 31, 2023 to ` 14,128.25 billion at March 31, 2024.
Term deposits increased by 27.7% from ` 6,395.79 billion
at March 31, 2023 to ` 8,169.53 billion at March 31,
2024. Savings account deposits increased by 5.9% from
` 3,797.76 billion at March 31, 2023 to ` 4,023.00 billion
at March 31, 2024 and current account deposits increased
by 19.9% from ` 1,614.86 billion at March 31, 2023 to
` 1,935.72 billion at March 31, 2024. CASA deposits
increased by 10.1% from ` 5,412.62 billion at March 31,
2023 to ` 5,958.72 billion at March 31, 2024.
The average current account deposits increased by 12.0%
from ` 1,324.77 billion in fiscal 2023 to ` 1,483.26 billion
in fiscal 2024. The average savings account deposits
increased by 4.4% from ` 3,434.14 billion in fiscal 2023 to
` 3,584.21 billion in fiscal 2024. Average CASA deposits
increased by 6.5% from ` 4,758.90 billion in fiscal 2023
to ` 5,067.47 billion in fiscal 2024. The average CASA
deposits were 40.4% of total average deposits for fiscal
2024 as compared to 44.7% for fiscal 2023. Average
CASA deposits were 35.9% of the total funding (i.e.,
deposits and borrowings) for fiscal 2024 as compared to
39.7% for fiscal 2023.
Deposits of overseas branches increased by 2.5% from
` 147.82 billion at March 31, 2023 to ` 151.48 billion at
March 31, 2024.
Total deposits at March 31, 2024 formed 91.9% of the
funding (i.e., deposits and borrowings) as compared to
90.8% March 31, 2023.
Borrowings
Borrowings increased by 4.7% from ` 1,193.25 billion at
March 31, 2023 to ` 1,249.68 billion at March 31, 2024
primarily due to an increase in foreign currency term
money borrowings, refinance borrowings, call money
borrowings in India and bullion borrowings, offset, in part,
by a decrease in subordinated bonds. Net borrowings
of overseas branches increased from ` 258.14 billion at
March 31, 2023 to ` 295.72 billion at March 31, 2024.
Other liabilities
Other liabilities increased by 14.4% from ` 833.25 billion
at March 31, 2023 to ` 953.23 billion at March 31, 2024
primarily due to an increase in total creditors, security
deposits and miscellaneous liabilities. 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 18.8%
from ` 2,007.16 billion at March 31, 2023 to ` 2,383.99
billion at March 31, 2024 primarily due to accretion to
reserves out of retained profit, offset, in part, by payment
of dividend for fiscal 2023. At March 31, 2024, the Bank’s
Tier-1 capital adequacy ratio was 15.60% as against the
requirement of 9.70% and total capital adequacy ratio
was 16.33% as against the requirement of 11.70%.
MANAGEMENT DISCUSSION & ANALYSIS
Annual Report 2023-24 | 135
Integrated Report
Statutory Reports
Financial Statements
Off balance sheet items, commitments and contingencies
The following table sets forth, for the periods indicated, the principal components of contingent liabilities.
` in billion
Particulars
At
March 31, 2023
At
March 31, 2024
Claims against the Bank, not acknowledged as debts
81.96
93.29
Liability for partly paid investments
0.01
0.09
Notional principal amount of outstanding forward exchange contracts
15,330.22
15,600.22
Guarantees given on behalf of constituents
1,238.18
1,493.65
Acceptances, endorsements and other obligations
441.91
520.73
Notional principal amount of currency swaps
564.63
541.26
Notional principal amount of interest rate swaps and currency options and
interest rate futures
25,089.18
28,197.21
Other items for which the Bank is contingently liable
85.57
111.17
Total
42,831.66
46,557.62
1 All amounts have been rounded off to the nearest ` 10.0 million.
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 increased from ` 25,089.18 billion at
March 31, 2023 to ` 28,197.21 billion at March 31, 2024
primarily due to an increase in market making activities
and client flow.
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
` 15,330.22 billion at March 31, 2023 to ` 15,600.22 billion
at March 31, 2024 primarily due to an increase in trading
and market making activities in forwards to facilitate client
flow and capture opportunities in the forward market.
Loan concentration
The Bank follows a policy of portfolio diversification and
evaluates its total financing exposure to a particular
industry in the light of its forecasts of growth and profitability
for that industry. The Bank’s Credit Risk Management
Group monitors all major sectors of the economy and
specifically tracks industries in which the Bank has credit
exposures. The Bank monitors developments in various
sectors to assess potential risks in its portfolio and new
business opportunities. The Bank’s policy is to limit its
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.
MANAGEMENT DISCUSSION & ANALYSIS
136 | Annual Report 2023-24
The following tables set forth, at the dates indicated, the composition of the Bank’s exposure.
` in billion, except percentages
Industry
March 31, 2023
March 31, 2024
Total
exposure
% of total
exposure
Total
exposure
% of total
exposure
Retail finance1
7,751.65
38.3
9,423.22
39.5
Services – finance
1,766.80
8.7
1,906.17
8.0
Rural retail
1,250.80
6.2
1,508.78
6.3
Wholesale/retail trade
819.20
4.0
1,163.93
4.9
Banks
1,208.52
6.0
1,065.85
4.5
Electronics and engineering
804.99
4.0
958.37
4.0
Services – non-finance
668.24
3.3
850.22
3.6
Crude petroleum/refining and petrochemicals
764.57
3.8
831.65
3.5
Road, ports, telecom, urban development and
other infrastructure
609.28
3.0
718.94
3.0
Real estate activities
489.37
2.4
602.10
2.5
Construction
471.72
2.3
549.52
2.3
Iron and steel (including iron and steel products)
446.44
2.2
532.55
2.2
Power
477.22
2.4
530.96
2.2
Chemical and fertilisers
382.83
1.9
421.22
1.8
Automobiles
261.26
1.3
327.64
1.4
Manufacturing products
(excluding metal and metal products)
250.49
1.2
319.62
1.3
Textile
220.59
1.1
260.58
1.1
Mutual funds
180.60
0.9
235.92
1.0
Other industries2
1,420.24
7.0
1,632.46
6.9
Total
20,244.81
100.0
23,839.70
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 gems and jewelry, mining, cement, food & beverages, shipping, drugs and pharmaceuticals, metal
and metal products (excluding iron and steel) 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 8.5% of total exposure
of the Bank at March 31, 2023 to 8.3% at March 31, 2024. All top 20 borrowers as of March 31, 2024 are rated A- and
above internally. The exposure to the top 10 borrower groups decreased marginally from 10.1% of total exposure of the
Bank at March 31, 2023 to 10.0% at March 31, 2024.
MANAGEMENT DISCUSSION & ANALYSIS
Annual Report 2023-24 | 137
Integrated Report
Statutory Reports
Financial Statements
The following table sets forth, at the dates indicated, the composition of the Bank’s outstanding net advances:
` in billion
Particulars
March 31, 2023
March 31, 2024
Advances
10,196.38
11,844.06
- Domestic book
9,855.28
11,509.55
- Retail
5,578.17
6,662.61
- Rural
874.31
1,024.46
- Business banking
721.12
932.28
- SME
482.21
600.95
- Corporate and others
2,199.47
2,289.25
- Overseas book
341.10
334.51
1 Net of Bill Rediscounting Scheme (BRDS)/Interbank Participatory Certificate (IBPC).
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 19.4% in fiscal 2024
compared to an increase of 16.2% in total advances. The
share of net retail advances increased from 53.9% of net
advances at March 31, 2023 to 54.9% of net advances
at March 31, 2024. Including non-fund based outstanding,
the share of retail portfolio was 46.8% of the total portfolio
at March 31, 2024.
The overseas loan portfolio in USD terms declined by
3.4% year-on-year at March 31, 2024. The year-on-year
decrease in the overseas loan portfolio was primarily
on account of repayment of short-term trade advances.
The overseas loan portfolio was 2.8% of the overall loan
book at March 31, 2024. The corporate fund and non-
fund outstanding, net of cash/bank/financial institutions/
insurance backed lending, was USD 3.11 billion at March 31,
2024. Out of USD 3.11 billion, 91.2% of the outstanding
was to Indian corporates and their subsidiaries and joint
ventures and 5.7% of the outstanding was to non-India
companies with Indian or India-linked operations and
activities. The portfolio in this segment is 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 10.1%
from about USD 305.6 million year-on-year to USD 274.9
million at March 31, 2024.
The following table sets forth, at the dates indicated, the composition of the Bank’s net outstanding retail advances.
` in billion, except percentages
March 31, 2023
March 31, 2024
Total retail
advances
% of total
retail
advances
Total retail
advances
% of total
retail
advances
Home loans
3,446.96
61.8
3,959.21
59.4
Personal loans
880.55
15.8
1,166.77
17.5
Automobile loans
518.78
9.3
612.09
9.2
Credit cards
378.41
6.8
513.21
7.7
Commercial business
275.41
4.9
314.26
4.7
Others1
78.06
1.4
97.07
1.5
Total retail advances2
5,578.17
100.0
6,662.61
100.0
1 Includes loans against securities and dealer financing.
2 Gross of Bill Rediscounting Scheme (BRDS)/Interbank Participatory Certificate (IBPC) amounting to ` 82.5 billion at March 31, 2023
and ` 150.0 billion at March 31, 2024.
3 All amounts have been rounded off to the nearest ` 10.0 million.
MANAGEMENT DISCUSSION & ANALYSIS
138 | Annual Report 2023-24
The following table sets forth, at the dated indicated, the composition of the Bank’s net outstanding rural advances:
` in billion
Particulars
March 31, 2023
March 31, 2024
Farmer finance
234.05
266.53
Rural business credit
239.10
278.98
Jewel loan
228.86
271.53
Others1
172.30
207.42
Rural advances
874.31
1,024.46
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:
` in billion, except percentages
Ratings category1
March 31, 2023
March 31, 2024
AA- and above
46.9%
39.8%
A+, A, A-
26.6
27.9
A- and above
73.5
67.7
BBB+, BBB, BBB-
24.3
30.5
BB and below2
1.2
1.1
Unrated
1.0
0.7
Total
100.0%
100.0%
Total net advances3
` 3,826.41
` 4,306.99
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 2023
Fiscal 2024
Amount
(` billions)
% of
adjusted net
bank credit
Amount
(` billions)
% of
adjusted net
bank credit
Target (% of
adjusted net
bank credit)
Agriculture Sector
1,423.58
17.7
1,739.94
18.1
18.0
- Small and marginal farmers
794.72
9.9
1,041.44
10.8
10.0
- Non-corporate farmers
1,068.17
13.3
1,378.20
14.4
13.8
Micro, small and medium
enterprises
1,729.04
-
2,100.03
-
-
- Micro enterprises
661.21
8.2
792.71
8.3
7.5
Other priority sector
178.32
-
102.29
-
-
Total priority sector lending
3,330.94
41.5
3,942.26
41.1
40.0
- Weaker sections
910.20
11.3
1,157.15
12.1
12.0
1 The above includes the impact of Priority Sector Lending Certificate purchased/sold by the Bank.
MANAGEMENT DISCUSSION & ANALYSIS
Annual Report 2023-24 | 139
Integrated Report
Statutory Reports
Financial Statements
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).
` in billion
Particulars
March 31, 2023
March 31, 2024
Non-performing assets
Sub-standard assets
68.79
87.13
Doubtful assets
127.00
96.04
Loss assets
116.05
96.45
Total non-performing assets1
311.84
279.62
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.
The following table sets forth, at the dates indicated, information regarding the Bank’s non-performing assets (NPAs).
` in billion, except percentages
Year ended
Gross NPA1
Net NPA
Net customer
assets
% of net
NPA to net
customer assets2
March 31, 2021
413.73
91.80
8,025.90
1.14
March 31, 2022
339.20
69.61
9,160.87
0.76
March 31, 2023
311.84
51.55
10,816.41
0.48
March 31, 2024
279.62
53.78
12,720.24
0.42
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
March 31, 2023
March 31, 2024
Amount
%
Amount
%
Retail finance1
71.79
23.0
82.89
29.6
Rural retail
37.29
12.0
42.55
15.2
Construction
54.21
17.4
41.13
14.7
Crude petroleum/refining and petrochemicals
26.84
8.6
16.88
6.0
Services – non-finance
15.37
4.9
14.79
5.3
Electronics and engineering
12.52
4.0
12.40
4.4
Mining
11.78
3.8
11.96
4.3
Road, ports, telecom, urban development and other
infrastructure
13.75
4.4
9.76
3.5
Wholesale/retail trade
7.77
2.5
8.56
3.1
Iron/steel and products
5.48
1.8
4.90
1.8
Power
21.91
7.0
4.44
1.6
Gems and jewellery
3.19
1.0
2.74
1.0
Manufacturing products
3.53
1.1
0.90
0.3
Other industries2
26.41
8.5
25.72
9.2
Total
311.84
100.0
279.62
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.
MANAGEMENT DISCUSSION & ANALYSIS
140 | Annual Report 2023-24
The gross additions to NPAs were ` 190.27 billion in fiscal
2024 (` 186.41 billion in fiscal 2023). The net additions to
NPAs were ` 34.04 billion in fiscal 2024 (` 20.38 billion in
fiscal 2023). In fiscal 2024, the Bank recovered/upgraded
non-performing assets amounting to ` 156.23 billion
(` 166.03 billion in fiscal 2023), wrote-off non-performing
assets amounting to ` 60.92 billion (` 44.66 billion in
fiscal 2023) and sold non-performing assets amounting
to ` 5.35 billion (` 3.08 billion in fiscal 2023). As a result,
gross NPAs (net of write-offs) of the Bank decreased from
` 311.84 billion at March 31, 2023 to ` 279.62 billion at
March 31, 2024.
Net NPAs increased from ` 51.55 billion at March 31,
2023 to ` 53.78 billion at March 31, 2024. The ratio of net
NPAs to net customer assets decreased from 0.48% at
March 31, 2023 to 0.42% at March 31, 2024. The provision
coverage ratio at March 31, 2024 was 80.3% as compared
to 82.8% at March 31, 2023.
At March 31, 2024, gross non-performing loans in the
retail portfolio were 1.23% of gross retail loans compared
to 1.28% at March 31, 2023 and net non-performing
loans in the retail portfolio were 0.47% of net retail loans
compared to 0.47% at March 31, 2023.
The total non-fund based outstanding to borrowers
classified as non-performing was ` 36.71 billion at
March 31, 2024 (March 31, 2023: ` 37.80 billion). The
Bank held a provision of ` 20.90 billion at March 31, 2024
(March 31, 2023: ` 20.05 billion) against these non-fund
based outstanding.
The gross outstanding loans to borrowers whose facilities
have been restructured decreased from ` 45.08 billion at
March 31, 2023 to ` 30.59 billion at March 31, 2024. The net
outstanding loans to borrowers whose facilities have been
restructured decreased from ` 43.30 billion at March 31,
2023 to ` 29.15 billion at March 31, 2024. The aggregate
non-fund based outstanding to borrowers whose loans
were restructured was ` 2.48 billion at March 31, 2024
(March 31, 2023: ` 3.32 billion). Additionally, Bank holds
provision of ` 8.31 billion on restructured accounts.
At March 31, 2024, the outstanding loans and non-fund
facilities to borrowers in the corporate and small and
medium enterprises portfolio rated BB and below were
` 55.28 billion which includes the outstanding loans
and non-funded facilities under resolution amounting to
` 6.45 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
` 175.34 billion in fiscal 2023 to ` 188.49 billion in fiscal
2024 primarily due to an increase in net interest income
and non-interest income, offset, in part, by an increase in
operating expenses and provisions.
Wholesale banking segment
The profit before tax of the segment increased from
` 157.85 billion in fiscal 2023 to ` 199.72 billion in
fiscal 2024 primarily due to an increase in net interest
income, non-interest income and higher recoveries on
non-performing loans, offset, in part, by an increase in
operating expenses.
Treasury segment
The profit before tax of the segment increased from
` 142.72 billion in fiscal 2023 to ` 148.99 billion in fiscal
2024 primarily due to an increase in net interest income
and non-interest income, offset, in part, by an increase in
operating expenses and provisions.
Other banking segment
Profit before tax of the other banking segment increased
from ` 4.80 billion in fiscal 2023 to ` 7.68 billion in
fiscal 2024.
Unallocated
During FY2023, the Bank had made an additional
contingency provision ` 56.50 billion on a prudent basis as
compared to a nil contingency provision during FY2024.
The contingency provision was not allocated to any
segment and included in unallocated.
MANAGEMENT DISCUSSION & ANALYSIS
Annual Report 2023-24 | 141
Integrated Report
Statutory Reports
Financial Statements
CONSOLIDATED FINANCIALS AS PER INDIAN
GAAP
The consolidated profit after tax increased from ` 340.37
billion in fiscal 2023 to ` 442.56 billion in fiscal 2024
primarily due to an increase in the profit of ICICI Bank
and subsidiaries namely ICICI Securities, ICICI Prudential
Asset Management Company, ICICI Securities Primary
Dealership, ICICI Home Finance Company, ICICI Bank
Canada, ICICI Bank UK, ICICI Lombard General Insurance
Company (ICICI General) and ICICI Prudential Life
Insurance Company.
The consolidated assets of the Bank and its subsidiaries
and
other
consolidating
entities
increased
from
` 19,584.90 billion at March 31, 2023 to ` 23,640.63 billion
at March 31, 2024. Consolidated advances increased from
` 10,838.66 billion at March 31, 2023 to ` 12,607.76 billion
at March 31, 2024.
At March 31, 2024, the Bank’s consolidated Tier-1 capital
adequacy ratio was 15.43% as against the requirement of
9.70% and consolidated total capital adequacy ratio was
16.14% as against the requirement of 11.70%.
During fiscal 2024, the Board of Directors of the Bank
approved to increase shareholding in ICICI General in
multiple tranches up to 4.0% additional shareholding
and make the Company, a subsidiary of the Bank. Post
necessary regulatory approval(s), the Bank through stock
exchange mechanism had acquired additional stake in
ICICI General in multiple tranches, resulting into an increase
in shareholding to more than 50.0%. Consequently,
ICICI General ceased to be an associate and became a
subsidiary of the Bank w.e.f. February 29, 2024.
During fiscal 2024, the Board of Directors of the Bank
approved to make I-Process Services (India) Private
Limited (I-Process) a wholly-owned subsidiary of the Bank.
Post necessary regulatory approval(s), the Bank entered
into a share purchase agreement in relation to investment
in equity shares of I-Process from off-market transactions.
Consequently, I-Process ceased to be an associate and
became a subsidiary of the Bank w.e.f. March 20, 2024
and subsequently became a wholly-owned subsidiary of
the Bank w.e.f. March 22, 2024.
ICICI Bank Canada
The core operating profit of ICICI Bank Canada increased
from CAD 61.2 million in fiscal 2023 to CAD 100.9 million
in fiscal 2024 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 46.4 million (` 2.82 billion)
in fiscal 2023 to CAD 73.3 million (` 4.50 billion) in fiscal
2024 primarily due to an increase in core operating profit.
The total assets decreased from CAD 5.98 billion at
March 31, 2023 to CAD 5.88 billion at March 31, 2024.
Loans and advances increased from CAD 5.17 billion at
March 31, 2023 to CAD 5.23 billion at March 31, 2024. The
net impairment ratio increased from 0.08% at March 31,
2023 to 0.24% at March 31, 2024 primarily due to change
in estimates and revision in macro-economic factors. ICICI
Bank Canada had a total capital adequacy ratio of 17.8% at
March 31, 2024 as compared to 17.3% at March 31, 2023.
ICICI Bank UK
The core operating profit of ICICI Bank UK increased from
USD 18.3 million in fiscal 2023 to USD 34.5 million in fiscal
2024 primarily due to an increase in net interest income
and fee income, offset, in part, by an increase in operating
expenses. Profit after tax of ICICI Bank UK increased from
USD 13.0 million (` 1.05 billion) in fiscal 2023 to USD 28.8
million (` 2.39 billion) in fiscal 2024 primarily due to higher
core operating profit, offset, in part, by an increase in
impairment provisions.
Total assets increased from USD 2.14 billion at March 31,
2023 to USD 2.21 billion at March 31, 2024. Net advances
increased from USD 0.99 billion at March 31, 2023 to
USD 1.04 billion at March 31, 2024. The net impairment
ratio decreased from 3.3% at March 31, 2023 to 1.1%
at March 31, 2024. ICICI Bank UK had a total capital
adequacy ratio of 23.3% at March 31, 2024 compared to
27.1% at March 31, 2023.
ICICI Prudential Life Insurance Company (ICICI
Life)
The Annualised Premium Equivalent of ICICI Life increased
by 4.7% from ` 86.40 billion for fiscal 2023 to ` 90.46
billion for fiscal 2024. The Value of New Business (VNB)
decreased by 19.5% from ` 27.65 billion for fiscal 2023 to
` 22.27 billion for fiscal 2024. The VNB margin decreased
from 32.0% for fiscal 2023 to 24.6% in fiscal 2024. The
total premium earned increased by 8.3% from ` 399.33
billion in fiscal 2023 to ` 432.36 billion in fiscal 2024.
The total assets under management increased from
` 2,511.91 billion at March 31, 2023 to ` 2,941.40 billion at
March 31, 2024.
Net premium earned increased by 8.3% from ` 385.60
billion in fiscal 2023 to ` 417.60 billion in fiscal 2024. The
profit after tax increased from ` 8.11 billion in fiscal 2023
to ` 8.52 billion in fiscal 2024 primarily due to an increase
in investment income in the shareholder segment due to
favourable market conditions, offset, in part, by higher
new business strain in annuity and non-participating
protection segments.
MANAGEMENT DISCUSSION & ANALYSIS
142 | Annual Report 2023-24
ICICI Lombard General Insurance Company (ICICI
General)
The Gross Domestic Premium Income of ICICI General
increased by 17.8% year-on-year from ` 210.25 billion
in fiscal 2023 to ` 247.76 billion in fiscal 2024. The profit
after tax increased from ` 17.29 billion in fiscal 2023 to
` 19.19 billion in fiscal 2024 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 AMC)
As per Indian GAAP, the profit after tax of ICICI AMC
increased from ` 15.08 billion in fiscal 2023 to ` 18.15 billion
in fiscal 2024 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 increased from ` 11.40 billion in fiscal 2023
to ` 17.33 billion in fiscal 2024 primarily due to an increase
in fee income and net interest income, offset, in part, by an
increase in staff cost and other administrative expenses.
ICICI Securities Primary Dealership (I-Sec PD)
As per Indian GAAP, the profit after tax of I-Sec PD
increased from ` 1.28 billion in fiscal 2023 to ` 4.14 billion
in fiscal 2024 primarily due to an increase in net interest
income and higher trading gains.
ICICI Home Finance Company Limited (ICICI HFC)
As per Indian GAAP, profit after tax increased from ` 3.65
billion in fiscal 2023 to ` 5.32 billion in fiscal 2024 primarily
due to an increase in core operating profit and release 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.
Provision decreased from a charge of ` 0.56 billion in
fiscal 2023 to a write back of ` 0.10 billion in fiscal 2024
primarily due to recovery.
Net NPAs decreased from ` 3.53 billion at March 31, 2023
to ` 2.88 billion at March 31, 2024.
ICICI Venture Funds Management Company (ICICI
Venture)
The profit after tax of ICICI Venture increased from ` 61.9
million in fiscal 2023 to ` 110.3 million in fiscal 2024
primarily due to an increase in management fees received
from launch of new funds, 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 as per Indian GAAP.
` in billion
Company
Profit after tax
Total assets1
Fiscal 2023
Fiscal 2024
At
March 31, 2023
At
March 31, 2024
ICICI Bank Canada
2.82
4.50
363.46
361.00
ICICI Bank UK PLC
1.05
2.39
176.13
184.10
ICICI Prudential Life Insurance Company Limited
8.11
8.52
2,558.47
2,990.00
ICICI Lombard General Insurance Company Limited2
17.29
19.19
550.863
633.08
ICICI Prudential Asset Management Company Limited
15.08
18.15
24.89
29.18
ICICI Securities Limited (consolidated)
11.40
17.33
154.71
253.65
ICICI Securities Primary Dealership Limited
1.28
4.14
344.01
357.43
ICICI Home Finance Company Limited
3.65
5.32
187.01
235.82
ICICI Venture Funds Management Company Limited
0.06
0.11
3.02
3.08
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 Entity ceased to be an accounted as per the equity method as prescribed by Accounting Standard – 23 – “Accounting for Investments
in Associates in Consolidated Financial Statements” and became subsidiary of Bank w.e.f. February 29, 2024 and consolidated as per
Accounting Standard-21- “Consolidated Financial Statements”.
3 Total assets as per financial statements of ICICI Lombard General Insurance Company Limited.
4 See also “Financials- Statement pursuant to Section 129 of the Companies Act, 2013”.
5 All amounts have been rounded off to the nearest ` 10.0 million.
Annual Report 2023-24 | 143
Integrated Report
Statutory Reports
Financial Statements
KEY FINANCIAL INDICATORS: LAST 10 YEARS
(` in billion, except per share data and percentages)
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total deposits
3,615.63
4,214.26
4,900.39
5,609.75
6,529.20
7,709.69
9,325.22 10,645.72 11,808.41
14,128.25
Total advances
3,875.22
4,352.64
4,642.32
5,123.95
5,866.47
6,452.90
7,337.29
8,590.20 10,196.38
11,844.06
Equity capital & reserves
804.29
897.36
999.51
1,051.59
1,083.68
1,165.04
1,475.09
1,705.12
2,007.15
2,383.99
Total assets
6,461.29
7,206.95
7,717.91
8,791.89
9,644.59 10,983.65 12,304.33 14,112.98 15,842.07
18,715.15
Total capital adequacy
ratio1
17.0%
16.6%
17.4%
18.4%
16.9%
16.1%
19.1%
19.2%
18.3%
16.3%
Core operating profit
180.27
198.03
179.10
189.39
220.72
268.08
313.51
383.47
491.39
581.22
Net interest income
190.40
212.24
217.37
230.26
270.15
332.67
389.89
474.66
621.29
743.06
Net interest margin
3.48%
3.49%
3.25%
3.23%
3.42%
3.73%
3.69%
3.96%
4.48%
4.53%
Profit after tax
111.75
97.26
98.01
67.77
33.63
79.31
161.93
233.39
318.96
408.88
Earnings per share (Basic)2
17.56
15.23
15.31
10.56
5.23
12.28
24.01
33.66
45.79
58.38
Earnings per share
(Diluted)2
17.39
15.14
15.25
10.46
5.17
12.08
23.67
32.98
44.89
57.33
Return on average equity
14.3%
11.3%
10.3%
6.6%
3.2%
7.1%
12.2%
14.8%
17.3%
18.7%
Dividend per share3
5.00
5.00
2.50
1.50
1.00
0.00
2.00
5.00
8.00
10.00
1 Total capital adequacy ratio has been calculated as per Basel III framework.
2 During the year ended March 31, 2018, the Bank issued bonus shares in the proportion of 1:10, i.e. 1 (One) bonus equity share of ` 2 each for every 10 (Ten) fully
paid-up equity shares held (including shares underlying ADS). Per share information of prior periods also reflects the effect of bonus issue.
3 RBI through its circular 'Declaration of dividends by banks (Revised)' dated April 17, 2020, had directed that banks shall not make any dividend payment on equity
shares from the profits pertaining to the financial year ended March 31, 2020. Accordingly, the Bank did not pay any dividend for FY2020.
144 | Annual Report 2023-24
INDEPENDENT AUDITOR’S REPORT
To the Members of ICICI Bank Limited
Report on the Audit of the Standalone Financial Statements
Opinion
1.
We have audited the accompanying standalone financial statements of ICICI Bank Limited (‘the Bank’), which
comprise the Standalone Balance Sheet as at 31 March 2024, 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’).
2.
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 2024, 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 judgement, 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 matters
Identification and provisioning of non-performing advances (NPA):
Total Loans and Advances (Net of Provision) as at 31 March 2024: ` 11,844,063,894 (in ‘000s)
Provision for NPA as at 31 March 2024: ` 219,358,846 (in ‘000s)
(Refer Schedule 9, Schedule 17(3) and Schedule 18(18))
The Reserve Bank of India’s (“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
Our audit procedures with respect to this matter
included:
Tested the design and operating effectiveness of key
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.
Annual Report 2023-24 | 145
Integrated Report
Statutory Reports
Financial Statements
Key Audit Matter
How our audit addressed the key audit matters
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.
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)/ Centralised Information
Management System (CIMS) to identify stress.
For selected samples, assessed independently, the
accounts that can potentially be classified as NPA.
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.
INDEPENDENT AUDITOR’S REPORT (Contd.)
146 | Annual Report 2023-24
Key Audit Matter
How our audit addressed the key audit matters
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 the relevant accounting
standards and RBI requirements relating to NPAs.
Evaluation of Litigations included in contingent liabilities.
(Included under contingent liabilities) (in ‘000)
Particulars
As at
31 March 2024
As at
31 March 2023
Legal Cases
3,829,177
3,027,295
Taxes
89,463,903
78,935,723
Total Claims against Bank not acknowledged as Debt
93,293,080
81,963,018
(Refer Schedule 12 I, Schedule 17(12) and Schedule 18(37))
The Bank has material open tax litigations including
matters under dispute which involve significant
judgement to determine the possible outcome of these
disputes.
Significant management judgement is needed 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.
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.
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
the
litigations
including
understanding of various orders/ notices
received by the Bank and management’s
grounds of appeals before the relevant
appellate authorities.
INDEPENDENT AUDITOR’S REPORT (Contd.)
Annual Report 2023-24 | 147
Integrated Report
Statutory Reports
Financial Statements
Key Audit Matter
How our audit addressed the key audit matters
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.
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.
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 are 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.
INDEPENDENT AUDITOR’S REPORT (Contd.)
148 | Annual Report 2023-24
Key Audit Matter
How our audit addressed the key audit matters
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.
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.
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 judgements and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the 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.
INDEPENDENT AUDITOR’S REPORT (Contd.)
Annual Report 2023-24 | 149
Integrated Report
Statutory Reports
Financial Statements
INDEPENDENT AUDITOR’S REPORT (Contd.)
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 judgement 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;
•
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 standalone 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.
150 | Annual Report 2023-24
INDEPENDENT AUDITOR’S REPORT (Contd.)
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 165 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.
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;
b.
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;
c.
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;
d.
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;
e.
On the basis of the written representations received from the directors as on 31 March 2024 taken on record
by the Board of Directors, none of the directors are disqualified as on 31 March 2024 from being appointed as
a director in terms of Section 164(2) of the Act;
f.
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
g.
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.
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(42));
ii.
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(42));
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 2024;
iv.
(1) The Management has represented that, to the best of its knowledge and belief, as disclosed in
schedule 18(59) 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
Annual Report 2023-24 | 151
Integrated Report
Statutory Reports
Financial Statements
INDEPENDENT AUDITOR’S REPORT (Contd.)
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(59) 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.
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.
vi.
Based on our examination which included test checks, the Bank has used an accounting softwares for
maintaining its books of account which has a feature of recording audit trail (edit log) facility, and the same
has operated throughout the year for all relevant transactions recorded in the softwares. Further, during
the course of our audit we did not come across any instance of audit trail feature being tampered with.
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: 24118580BKFLYA4385
Vinit Jain
Partner
Membership Number.: 145911
UDIN: 24145911BKFXMP7792
Place: Mumbai
Date: 27 April 2024
Place: Mumbai
Date: 27 April 2024
152 | Annual Report 2023-24
Annexure “A” to the Independent Auditor’s report on the Standalone Financial
Statements of ICICI Bank Limited for the year ended 31 March 2024
[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.
We have audited the internal financial controls with reference to standalone financial statements of ICICI Bank
Limited (“the Bank”) as at 31 March 2024 in conjunction with our audit of the standalone financial statements of the
Bank for the year ended on that date.
2.
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 2024, 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.
Auditor’s Responsibility
4.
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.
5.
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
Annual Report 2023-24 | 153
Integrated Report
Statutory Reports
Financial Statements
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: 24118580BKFLYA4385
Vinit Jain
Partner
Membership Number.: 145911
UDIN: 24145911BKFXMP7792
Place: Mumbai
Date: 27 April 2024
Place: Mumbai
Date: 27 April 2024
Annexure A (Contd.)
154 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
BALANCE SHEET
at March 31, 2024
` in ‘000s
Schedule
At
31.03.2024
At
31.03.2023
CAPITAL AND LIABILITIES
Capital
1
14,046,790
13,967,750
Employees stock options outstanding
1A
14,053,180
7,608,859
Reserves and surplus
2
2,355,893,246
1,985,577,170
Deposits
3
14,128,249,513
11,808,406,972
Borrowings
4
1,249,675,779
1,193,254,936
Other liabilities and provisions
5
953,227,258
833,250,836
TOTAL CAPITAL AND LIABILITIES
18,715,145,766
15,842,066,523
ASSETS
Cash and balances with Reserve Bank of India
6
897,116,960
685,261,721
Balances with banks and money at call and short notice
7
502,143,120
509,121,002
Investments
8
4,619,422,722
3,623,297,355
Advances
9
11,844,063,894
10,196,383,053
Fixed assets
10
108,598,403
95,998,412
Other assets
11
743,800,667
732,004,980
TOTAL ASSETS
18,715,145,766
15,842,066,523
Contingent liabilities
12
46,557,617,752
42,831,654,487
Bills for collection
1,007,917,603
864,547,740
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
Tushar Kurani
Partner
Membership no.: 118580
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Ajay Kumar Gupta
Executive Director
DIN-07580795
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
Vinit Jain
Partner
Membership no.: 145911
Mumbai
April 27, 2024
Annual Report 2023-24 | 155
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
PROFIT AND LOSS ACCOUNT
for the year ended March 31, 2024
` in ‘000s
Schedule
Year ended
31.03.2024
Year ended
31.03.2023
I.
INCOME
Interest earned
13
1,428,909,420
1,092,313,380
Other income
14
229,577,689
198,314,479
TOTAL INCOME
1,658,487,109
1,290,627,859
II.
EXPENDITURE
Interest expended
15
685,852,236
471,027,360
Operating expenses
16
391,327,336
328,732,391
Provisions and contingencies (refer note 18.42)
172,424,843
171,903,146
TOTAL EXPENDITURE
1,249,604,415
971,662,897
III. PROFIT/(LOSS)
Net profit/(loss) for the period/year
408,882,694
318,964,962
Profit brought forward
563,569,883
436,713,394
TOTAL PROFIT/(LOSS)
972,452,577
755,678,356
IV. APPROPRIATIONS/TRANSFERS
Transfer to Statutory Reserve
102,221,000
79,742,000
Transfer to Capital Reserve
332,500
878,200
Transfer to/(from) Investment Fluctuation Reserve
9,927,900
1,043,810
Transfer to Revenue and other reserves
-
50,000,000
Transfer to Special Reserve
30,208,000
25,650,000
Dividend paid during the period/year
55,985,964
34,794,463
Balance carried over to balance sheet
773,777,213
563,569,883
TOTAL
972,452,577
755,678,356
Significant accounting policies and notes to accounts
17 & 18
Earnings per share (refer note 18.1)
Basic (`)
58.38
45.79
Diluted (`)
57.33
44.89
Face value per share (`)
2.00
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
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Ajay Kumar Gupta
Executive Director
DIN-07580795
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
Vinit Jain
Partner
Membership no.: 145911
Mumbai
April 27, 2024
156 | Annual Report 2023-24
` in ‘000s
Year ended
31.03.2024
Year ended
31.03.2023
Cash flow from/(used in) operating activities
Profit/(loss) before taxes
544,878,310
424,212,254
Adjustments for:
Depreciation and amortisation
17,228,733
14,446,815
Net (appreciation)/depreciation on investments
15,652,829
25,947,137
Provision in respect of non-performing and other assets
9,447,877
(6,222,899)
General provision for standard assets
11,548,326
5,795,607
Provision for contingencies & others
8,545,128
54,087,695
Employee Stock Options Expense
7,028,323
5,172,383
Income from subsidiaries and consolidated entities
(20,729,074)
(17,845,592)
(Profit)/loss on sale of fixed assets
(143,368)
(534,906)
(i)
593,457,084
505,058,494
Adjustments for:
(Increase)/decrease in investments
(388,852,304)
118,142,776
(Increase)/decrease in advances
(1,661,040,967)
(1,606,959,156)
Increase/(decrease) in deposits
2,319,842,540
1,162,749,545
(Increase)/decrease in other assets
(36,562,549)
(87,869,550)
Increase/(decrease) in other liabilities and provisions
100,573,306
82,944,583
(ii)
333,960,026
(330,991,802)
Refund/(payment) of direct taxes
(iii)
(110,851,174)
(97,163,542)
Net cash flow from/(used in) operating activities (i)+(ii)+(iii)
(A)
816,565,936
76,903,150
Cash flow from/(used in) investing activities
Redemption/sale from/(investments in) subsidiaries (including
application money)
(28,239,282)
(5,299,820)
Income from subsidiaries, joint ventures and consolidated
entities
20,729,074
17,845,592
Purchase of fixed assets
(28,747,829)
(20,200,892)
Proceeds from sale of fixed assets
544,801
2,815,987
(Purchase)/sale of held-to-maturity securities
(590,774,362)
(652,674,032)
Net cash flow from/(used in) investing activities
(B)
(626,487,598)
(657,513,165)
Cash flow from/(used in) financing activities
Proceeds from issue of share capital (including ESOPs)
11,708,675
9,420,691
Proceeds from long-term borrowings
292,840,729
329,872,556
Repayment of long-term borrowings
(320,339,104)
(183,073,266)
Net proceeds/(repayment) of short-term borrowings
82,534,163
(27,161,726)
Dividend paid
(55,985,964)
(34,794,463)
Net cash flow from/(used in) financing activities
(C)
10,758,499
94,263,792
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CASH FLOW STATEMENT
for the year ended March 31, 2024
Annual Report 2023-24 | 157
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CASH FLOW STATEMENT
for the year ended March 31, 2024 (Contd.)
` in ‘000s
Year ended
31.03.2024
Year ended
31.03.2023
Effect of exchange fluctuation on translation reserve
(D)
4,040,520
2,505,314
Net increase/(decrease) in cash and cash equivalents
(A) + (B) + (C) + (D)
204,877,357
(483,840,909)
Cash and cash equivalents at beginning of the year
1,194,382,723
1,678,223,632
Cash and cash equivalents at end of the year
1,399,260,080
1,194,382,723
1. Cash and cash equivalents include cash in hand, foreign currency notes, 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
Tushar Kurani
Partner
Membership no.: 118580
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Ajay Kumar Gupta
Executive Director
DIN-07580795
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
Vinit Jain
Partner
Membership no.: 145911
Mumbai
April 27, 2024
158 | Annual Report 2023-24
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 1 - CAPITAL
Authorised capital
12,500,000,000 equity shares of ` 2 each (March 31, 2023: 12,500,000,000
equity shares of ` 2 each)
25,000,000
25,000,000
Equity share capital
Issued, subscribed and paid-up capital
6,982,815,731 equity shares of ` 2 each (March 31, 2023: 6,948,771,375
equity shares)
13,965,631
13,897,543
Add: 39,519,912 equity shares of ` 2 each (March 31, 2023: 34,044,356
equity shares) issued during the year
79,040
68,088
14,044,671
13,965,631
Add: Forfeited equity shares1
2,119
2,119
TOTAL CAPITAL
14,046,790
13,967,750
1. On account of forfeiture of 266,089 equity shares of ` 10 each.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 1A - EMPLOYEES STOCK OPTIONS OUTSTANDING
Opening balance
7,608,859
2,664,141
Additions during the year1
7,028,323
5,172,383
Deductions during the year2
(584,002)
(227,665)
Closing balance
14,053,180
7,608,859
1. Represents cost of employee stock options/units 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.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 2 - RESERVES AND SURPLUS
I.
Statutory reserve
Opening balance
435,778,519
356,036,519
Additions during the year
102,221,000
79,742,000
Deductions during the year
-
-
Closing balance
537,999,519
435,778,519
II.
Special reserve
Opening balance
154,490,000
128,840,000
Additions during the year
30,208,000
25,650,000
Deductions during the year
-
-
Closing balance
184,698,000
154,490,000
III. Securities premium
Opening balance
505,830,228
496,253,897
Additions during the year1
12,206,166
9,576,331
Deductions during the year
-
-
Closing balance
518,036,394
505,830,228
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet
Annual Report 2023-24 | 159
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
` in ‘000s
At
31.03.2024
At
31.03.2023
IV. Investment reserve account
Opening balance
-
-
Additions during the year
-
-
Deductions during the year
-
-
Closing balance
-
-
V.
Investment fluctuation reserve2
Opening balance
21,758,809
20,714,999
Additions during the year
9,927,900
1,043,810
Deductions during the year
-
-
Closing balance
31,686,709
21,758,809
VI. Capital reserve
Opening balance
150,418,662
149,540,462
Additions during the year3
332,500
878,200
Deductions during the year
-
-
Closing balance
150,751,162
150,418,662
VII. Capital redemption reserve
Opening balance
3,500,000
3,500,000
Additions during the year
-
-
Deductions during the year
-
-
Closing balance
3,500,000
3,500,000
VIII. Foreign currency translation reserve
Opening balance
10,238,275
7,732,961
Additions during the year4
4,040,520
2,505,314
Deductions during the year
-
-
Closing balance
14,278,795
10,238,275
IX. Revaluation reserve
Opening balance
30,624,626
31,956,593
Additions during the year5
1,174,473
839,516
Deductions during the year6
(965,562)
(2,171,483)
Closing balance
30,833,537
30,624,626
X.
Revenue and other reserves
Opening balance
109,368,168
57,267,116
Additions during the year7
963,749
52,101,052
Deductions during the year
-
-
Closing balance
110,331,917
109,368,168
XI. Balance in profit and loss account
773,777,213
563,569,883
TOTAL RESERVES AND SURPLUS
2,355,893,246
1,985,577,170
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 and profit on sale of land and buildings,
net of taxes and transfer to statutory reserve.
4. Includes transfer of accumulated translation loss of ` 3,396.6 million related to closure of Bank’s Offshore Banking Unit, SEEPZ
Mumbai, to profit and loss account in terms of Accounting Standard 11 - The Effects of Changes in Foreign Exchange Rates.
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.
160 | Annual Report 2023-24
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 3 - DEPOSITS
A.
I.
Demand deposits
i)
From banks
47,943,206
49,917,686
ii)
From others
1,887,779,486
1,564,941,951
II.
Savings bank deposits
4,022,998,921
3,797,758,853
III. Term deposits
i)
From banks
208,627,693
113,475,314
ii)
From others
7,960,900,207
6,282,313,168
TOTAL DEPOSITS
14,128,249,513
11,808,406,972
B.
I.
Deposits of branches in India
13,976,772,353
11,660,582,193
II.
Deposits of branches outside India
151,477,160
147,824,779
TOTAL DEPOSITS
14,128,249,513
11,808,406,972
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 4 - BORROWINGS
I.
Borrowings in India
i)
Reserve Bank of India1
-
-
ii)
Other banks
20,851,250
-
iii)
Financial institutions2
387,143,200
355,946,900
iv)
Borrowings in the form of bonds and debentures
(excluding subordinated debt)
461,120,224
460,418,579
v)
Capital instruments
a) Innovative Perpetual Debt Instruments (IPDI)
(qualifying as additional Tier 1 capital)
-
51,400,000
b)
Unsecured redeemable debentures/bonds
(subordinated debt included in Tier 2 capital)
28,497,430
31,409,320
TOTAL BORROWINGS IN INDIA
897,612,104
899,174,799
II. Borrowings outside India
i)
Bonds and notes
133,372,570
131,367,581
ii)
Other borrowings
218,691,105
162,712,556
TOTAL BORROWINGS OUTSIDE INDIA
352,063,675
294,080,137
TOTAL BORROWINGS
1,249,675,779
1,193,254,936
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, 2023: Nil) and no borrowings made under market repurchase
transactions (including tri-party repo) with banks and financial institutions and transactions under liquidity adjustment facility and
marginal standing facility (March 31, 2023: Nil)
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
Annual Report 2023-24 | 161
Integrated Report
Statutory Reports
Financial Statements
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
I.
Bills payable
126,731,523
134,783,012
II.
Inter-office adjustments (net)
420,905
3,228,016
III. Interest accrued
34,150,501
30,423,631
IV. Sundry creditors
197,250,382
167,703,280
V.
General provision for standard assets (refer note 18.20)
58,631,606
47,022,362
VI. Unrealised loss on foreign exchange and derivative contracts1
173,575,855
178,698,973
VII. Others (including provisions)2
362,466,486
271,391,562
TOTAL OTHER LIABILITIES AND PROVISIONS
953,227,258
833,250,836
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, 2023: ` 131,000.0 million) and specific provision for
standard loans amounting to ` 9,795.3 million (March 31, 2023: ` 14,946.9 million).
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA
I.
Cash in hand (including foreign currency notes)
87,516,682
85,594,376
II.
Balances with Reserve Bank of India
(a) in current account
625,010,278
480,247,345
(b) in other accounts1
184,590,000
119,420,000
TOTAL CASH AND BALANCES WITH RESERVE BANK OF INDIA
897,116,960
685,261,721
1. Represents lending under Liquidity Adjustment Facility (LAF) and Standing Deposit Facility (SDF).
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND
SHORT NOTICE
I.
In India
i)
Balances with banks
a)
In current accounts
84,825
1,161,580
b)
In other deposit accounts
1,185,000
39,768,173
ii)
Money at call and short notice
a)
With banks
4,170,250
8,217,000
b)
With other institutions1
122,517,010
6,000,000
TOTAL
127,957,085
55,146,753
II. Outside India
i)
In current accounts
200,907,593
283,001,318
ii)
In other deposit accounts
80,071,639
26,708,047
iii)
Money at call and short notice
93,206,803
144,264,884
TOTAL
374,186,035
453,974,249
TOTAL BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
502,143,120
509,121,002
1. Includes lending under reverse repo.
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
162 | Annual Report 2023-24
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 8 - INVESTMENTS
I.
Investments in India [net of provisions]
i)
Government securities
3,755,955,316
3,057,772,845
ii)
Other approved securities
-
-
iii)
Shares (includes equity and preference shares)
26,796,577
21,711,915
iv)
Debentures and bonds (including commercial paper and certificate
of deposits)
472,649,378
288,094,031
v)
Subsidiaries and/or joint ventures
97,153,369
68,914,088
vi)
Others (mutual fund units, pass through certificates, security
receipts, and other related investments)
190,131,026
105,787,007
TOTAL INVESTMENTS IN INDIA
4,542,685,666
3,542,279,886
II.
Investments outside India [net of provisions]
i)
Government securities
39,849,260
42,389,373
ii)
Subsidiaries and/or joint ventures abroad
(includes equity and preference shares)
19,698,901
19,698,901
iii)
Others (equity shares, bonds and certificate of deposits)
17,188,895
18,929,195
TOTAL INVESTMENTS OUTSIDE INDIA
76,737,056
81,017,469
TOTAL INVESTMENTS
4,619,422,722
3,623,297,355
A.
Investments in India
Gross value of investments
4,602,653,199
3,599,811,662
Less: Aggregate of provision/depreciation/(appreciation)
59,967,533
57,531,776
Net investments
4,542,685,666
3,542,279,886
B.
Investments outside India
Gross value of investments
80,601,949
85,062,773
Less: Aggregate of provision/depreciation/(appreciation)
3,864,893
4,045,304
Net investments
76,737,056
81,017,469
TOTAL INVESTMENTS
4,619,422,722
3,623,297,355
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
Annual Report 2023-24 | 163
Integrated Report
Statutory Reports
Financial Statements
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 9 - ADVANCES [net of provisions]
A.
i)
Bills purchased and discounted1
495,231,226
495,756,534
ii)
Cash credits, overdrafts and loans repayable on demand
3,438,535,695
2,799,818,550
iii) Term loans
7,910,296,973
6,900,807,969
TOTAL ADVANCES
11,844,063,894
10,196,383,053
B.
i)
Secured by tangible assets (includes advances against book debts)
8,309,588,182
7,123,779,285
ii)
Covered by bank/government guarantees
85,833,280
153,940,219
iii) Unsecured
3,448,642,432
2,918,663,549
TOTAL ADVANCES
11,844,063,894
10,196,383,053
C.
I.
Advances in India
i)
Priority sector
3,739,060,521
2,807,812,582
ii)
Public sector
510,801,139
516,152,443
iii) Banks
16,359,843
7,698,171
iv) Others
7,243,335,298
6,523,615,093
TOTAL ADVANCES IN INDIA
11,509,556,801
9,855,278,289
II. Advances outside India
i)
Due from banks
-
-
ii)
Due from others
a)
Bills purchased and discounted
112,888,198
151,133,779
b)
Syndicated and term loans
107,091,606
101,434,591
c)
Others
114,527,289
88,536,394
TOTAL ADVANCES OUTSIDE INDIA
334,507,093
341,104,764
TOTAL ADVANCES
11,844,063,894
10,196,383,053
1. Net of bills re-discounted amounting to ` 5,000.0 million (March 31, 2023: ` 10,000.0 million).
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
164 | Annual Report 2023-24
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 10 - FIXED ASSETS
I.
Premises
Gross block
At cost at March 31 of preceding year
81,224,390
81,486,941
Additions during the year1
4,367,362
2,401,505
Deductions during the year
(805,718)
(2,664,056)
Closing balance
84,786,034
81,224,390
Depreciation
At March 31 of preceding year
21,887,776
20,180,009
Charge during the year2
2,569,852
2,154,851
Deductions during the year
(500,864)
(447,084)
Total depreciation
23,956,764
21,887,776
Net block3
60,829,270
59,336,614
II. Other fixed assets (including furniture and fixtures)
Gross block
At cost at March 31 of preceding year
98,422,944
88,772,438
Additions during the year
25,274,036
15,409,102
Deductions during the year
(3,554,179)
(5,758,596)
Closing balance
120,142,801
98,422,944
Depreciation
At March 31 of preceding year
64,827,902
59,595,871
Charge during the year
13,857,226
10,893,499
Deductions during the year
(3,445,233)
(5,661,468)
Total depreciation
75,239,895
64,827,902
Net block
44,902,906
33,595,042
III. Lease assets
Gross block
At cost at March 31 of preceding year
17,902,406
17,890,746
Additions during the year
531
11,660
Deductions during the year
(2,650)
-
Closing balance4
17,900,287
17,902,406
Depreciation
At March 31 of preceding year
14,835,650
14,636,086
Charge during the year
199,375
199,564
Deductions during the year
(965)
-
Total depreciation, accumulated lease adjustment and provisions
15,034,060
14,835,650
Net block
2,866,227
3,066,756
TOTAL FIXED ASSETS
108,598,403
95,998,412
1. Includes revaluation gain amounting to ` 1,174.5 million (March 31, 2023: ` 839.5 million) on account of revaluation carried out by the
Bank.
2. Includes depreciation charge on account of revaluation amounting to ` 806.9 million for the year ended March 31, 2024 (year ended
March 31, 2023: ` 748.4 million).
3. Includes assets amounting to ` 8.8 million (March 31, 2023: ` 428.8 million) which are held for sale.
4. Includes assets taken on lease amounting to ` 1,185.7 million (March 31, 2023: ` 1,187.8 million).
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
Annual Report 2023-24 | 165
Integrated Report
Statutory Reports
Financial Statements
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 11 - OTHER ASSETS
I.
Inter-office adjustments (net)
-
-
II.
Interest accrued
158,626,876
123,894,716
III. Tax paid in advance/tax deducted at source (net)
6,426,448
16,081,826
IV. Stationery and stamps
3,230
3,181
V.
Non-banking assets acquired in satisfaction of claims1,2
-
-
VI. Advances for capital assets
6,960,309
7,393,764
VII. Deposits
63,455,018
48,012,567
VIII. Deferred tax assets (net) (refer note 18.44)
59,546,321
75,034,537
IX. Deposits in Rural Infrastructure and Development Fund
200,918,559
216,216,187
X.
Unrealised gain on foreign exchange and derivative contracts3
160,771,101
172,562,634
XI. Others
87,092,805
72,805,568
TOTAL OTHER ASSETS
743,800,667
732,004,980
1. Assets amounting to ` 2.6 million were transferred from banking assets to non-banking asset during the year ended March 31, 2024
(year ended March 31, 2023: Nil). Assets amounting to ` 827.7 million were sold during year ended March 31, 2024 (year ended
March 31, 2023: Nil).
2. Net of provision of ` 28,189.9 million (March 31, 2023: ` 29,011.8 million).
3. Gross unrealised loss on foreign exchange and derivative contracts is disclosed under Schedule 5 - Other liabilities.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 12 - CONTINGENT LIABILITIES
I.
Claims against the Bank not acknowledged as debts
93,293,080
81,963,017
II.
Liability for partly paid investments
93,095
12,455
III. Liability on account of outstanding forward exchange contracts1
15,600,221,876
15,330,218,103
IV. Guarantees given on behalf of constituents
a) In India
1,374,917,331
1,107,502,893
b) Outside India
118,731,736
130,675,436
V.
Acceptances, endorsements and other obligations
520,724,381
441,907,720
VI. Currency swaps1
541,254,033
564,629,994
VII. Interest rate swaps, currency options and interest rate futures1
28,197,214,343
25,089,176,610
VIII. Other items for which the Bank is contingently liable
111,167,877
85,568,259
TOTAL CONTINGENT LIABILITIES
46,557,617,752
42,831,654,487
1. Represents notional amount.
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Balance Sheet (Contd.)
166 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Profit and Loss Account (Contd.)
` in ‘000s
Year ended
31.03.2024
Year ended
31.03.2023
SCHEDULE 13 - INTEREST EARNED
I.
Interest/discount on advances/bills
1,109,439,334
839,429,657
II.
Income on investments
286,309,911
208,884,565
III.
Interest on balances with Reserve Bank of India and other inter-bank funds
17,913,925
18,505,130
IV. Others1,2
15,246,250
25,494,028
TOTAL INTEREST EARNED
1,428,909,420
1,092,313,380
1. Includes interest on income tax refunds amounting to ` 2,650.1 million (March 31, 2023: ` 1,144.8 million).
2. Includes interest and amortisation of premium on non-trading interest rate swaps and foreign currency swaps.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 14 - OTHER INCOME
I.
Commission, exchange and brokerage
168,752,999
147,765,850
II.
Profit/(loss) on sale of investments (net)
7,079,897
1,737,270
III. Profit/(loss) on revaluation of investments (net)
1,049,387
(1,296,397)
IV. Profit/(loss) on sale of land, buildings and other assets (net)1
143,368
534,906
V.
Profit/(loss) on exchange/derivative transactions (net)
29,988,645
30,278,524
VI. Income earned by way of dividends, etc. from subsidiary companies
and/or joint ventures abroad/in India
20,729,074
17,845,592
VII. Miscellaneous income (including lease income)
1,834,319
1,448,734
TOTAL OTHER INCOME
229,577,689
198,314,479
1. Includes profit/(loss) on sale of assets given on lease.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 15 - INTEREST EXPENDED
I.
Interest on deposits
578,574,729
389,680,668
II.
Interest on Reserve Bank of India/inter-bank borrowings
25,256,684
9,335,421
III. Others (including interest on borrowings of erstwhile ICICI Limited)
82,020,823
72,011,271
TOTAL INTEREST EXPENDED
685,852,236
471,027,360
Annual Report 2023-24 | 167
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Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Standalone Profit and Loss Account (Contd.)
` in ‘000s
Year ended
31.03.2024
Year ended
31.03.2023
SCHEDULE 16 - OPERATING EXPENSES
I.
Payments to and provisions for employees
151,419,918
120,599,320
II.
Rent, taxes and lighting1
15,335,067
13,789,914
III. Printing and stationery
3,332,210
2,471,090
IV. Advertisement and publicity
17,040,002
14,773,598
V.
Depreciation on Bank's property
16,427,078
13,048,350
VI. Depreciation (including lease equalisation) on leased assets
199,361
199,538
VII. Directors' fees, allowances and expenses
53,543
47,851
VIII. Auditors' fees and expenses
67,219
60,199
IX. Law charges
739,739
1,277,541
X.
Postages, courier, telephones, etc.
7,344,706
5,896,242
XI. Repairs and maintenance
31,625,309
31,251,038
XII. Insurance
17,004,634
14,789,240
XIII. Direct marketing agency expenses
32,998,191
28,901,240
XIV. Other expenditure2,3
97,740,359
81,627,230
TOTAL OPERATING EXPENSES
391,327,336
328,732,391
1. Includes lease expense amounting to ` 11,924.3 million (March 31, 2023: ` 10,784.1 million).
2. Includes expenses on purchase of Priority Sector Lending Certificates (PSLC) amounting to ` 16,428.5 million (March 31, 2023:
` 15,035.2 million).
3. Includes expenses on reward program amounting to ` 18,414.8 million (March 31, 2023: ` 12,764.2 million).
4. Net of recoveries from group companies towards shared services.
168 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
SCHEDULE 17
SIGNIFICANT ACCOUNTING POLICIES
Overview
ICICI Bank Limited (ICICI Bank or the Bank), incorporated in Vadodara, India is a publicly held banking company engaged
in providing a wide range of banking and financial services including commercial banking and treasury operations. ICICI
Bank is a banking company governed by the Banking Regulation Act, 1949. 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 and Companies
(Accounting Standard) Rule 2021 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.
f)
Arranger fee is accounted for as income when a significant portion of the arrangement is completed and right
to receive is established.
g)
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)
The annual/renewal fee on credit cards, debit cards and prepaid cards are amortised on a straight line basis
over one year.
i)
Fees paid/received for priority sector lending certificates (PSLC) is amortised on straight-line basis over the
period of the certificate.
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Statutory Reports
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SCHEDULES
forming part of the Accounts (Contd.)
j)
All other fees are accounted for as and when they become due where the Bank is reasonably certain of ultimate
collection.
2.
Investments
Investments are accounted for in accordance with the extant RBI guidelines on classification, valuation and operation
of investment portfolio by Banks.
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 classification, valuation and operation of investment
portfolio by Banks. 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 trading book 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
and for unquoted corporate bonds, security level valuation (SLV) published by FIMMDA. 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.
170 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
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.
Investments in units of Venture Capital Funds (VCFs)/Alternative Investment Fund (AIF) are categorised under
HTM category for an initial period of three years and valued at cost. The units of VCF/(AIF) categorised under AFS
are valued at the net asset value (NAV) declared by the VCF/AIF respectively. If the latest NAV is not available
continuously for more than 18 months, the units of VCF/AIF are valued at ` 1, as per RBI guidelines.
The units of Infrastructure Investment Trust (InvIT) are valued as per the quoted price available on the exchange.
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)/Marginal
Standing Facility (MSF) are accounted for as borrowing and lending transactions in accordance with the extant RBI
guidelines.
3.
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.
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Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
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. Certain
specified guidelines by RBI requires the asset classification to be maintained as “Standard”. Therefore, the borrowers
where resolution plan was implemented under these guidelines are classified as standard restructured.
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.
172 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
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 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 (Property, Plant and Equipment)
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.
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FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
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.
The useful lives of the groups of fixed assets are given below.
Asset
Useful life
Premises owned by the Bank
60 years
Leased assets and improvements to leasehold premises
60 years or lease period whichever is lower
ATMs1,2
5 - 8 years
Plant and machinery1 (including office equipment)
5 -10 years
Electric installations and equipments
10 - 15 years
Computers
3 years
Servers and network equipment1
4 – 10 years
Furniture and fixtures1
5 – 10 years
Motor vehicles1
5 years
Others (including software)1,3
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.
174 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
7.
Foreign exchange and derivative contracts
Derivative transactions comprises of forward contracts, futures, swaps and options. The Bank undertakes derivative
transactions for trading and hedging balance sheet assets and liabilities.
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. Marked to market values of such derivatives are classified as assets when
the fair value is positive or as liabilities when the fair value is negative. Premium for FC/INR option transaction is
recognised as income/expense on expiry or early termination of the transaction. Mark to market gain/loss (adjusted
for premium received/paid on options contracts) is recorded in the profit and loss account. The gain or loss arising on
unwinding or termination of the contracts, is accounted for in the Profit and Loss account. Currency futures contracts
are marked to market using daily settlement price on a trading day, which is the closing price of the respective
futures contracts on that day. 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) and Employee Stock Unit Scheme (ESUS)
The Employees Stock Option Scheme 2000 (Option 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.
The Employees Stock Unit Scheme - 2022 (Unit Scheme) provides for grant of units at face value to the eligible
employees of the Bank and its subsidiaries. The units granted vest in a graded manner and as per vesting criteria
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/units 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/units on the grant
Annual Report 2023-24 | 175
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Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
date and the inputs used in the valuation model include assumptions such as the expected life of the share option/
units, volatility, risk free rate and dividend yield.
The cost of stock options/units 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.
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 maximum 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.
176 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
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.
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.
Annual Report 2023-24 | 177
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
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.
14. Share issue expenses
Share issue expenses are deducted from Securities 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, foreign currency notes, balances with RBI, balances with other
banks and money at call and short notice.
18. Segment Reporting
The disclosure related to segment information is in accordance with AS-17, Segment Reporting and as per guidelines
issued by RBI.
178 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
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.
` in million, except per share data
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Net profit/(loss) attributable to equity shareholders used in computation
of Basic and Diluted EPS
408,882.7
318,965.0
Nominal value per share (`)
2.00
2.00
Basic earnings per share (`)
58.38
45.79
Effect of potential equity shares (`)
(1.05)
(0.90)
Diluted earnings per share (`)1
57.33
44.89
Reconciliation between weighted shares used in computation of basic
and diluted earnings per share
Weighted average number of equity shares outstanding used in
computation of Basic EPS
7,003,943,116
6,966,305,957
Add: Effect of potential equity shares
128,245,813
138,684,400
Weighted average number of equity shares outstanding used in
computation of Diluted EPS
7,132,188,929
7,104,990,357
1. The dilutive impact is due to options granted to employees by the Bank.
2.
Business/Information ratios
The following table sets forth, for the periods indicated, the business/information ratios.
Sr.
No.
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
1.
Interest income to working funds1
8.29%
7.40%
2.
Non-interest income to working funds1
1.33%
1.34%
3.
Cost of deposits
4.61%
3.66%
4.
Net interest margin2
4.53%
4.48%
5.
Operating profit to working funds1,3
3.37%
3.33%
6.
Return on assets4
2.37%
2.16%
7.
Net profit/(loss) per employee5 (` in million)
2.9
2.8
8.
Business (average deposits plus average advances) per
employee5,6 (` in million)
168.4
170.7
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.
Annual Report 2023-24 | 179
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
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.
` in million, except percentage
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Common Equity Tier 1 capital (CET 1)
2,142,170.4
1,832,770.7
Additional Tier 1 capital
-
51,400.0
Tier 1 capital (i + ii)
2,142,170.4
1,884,170.7
Tier 2 capital
100,104.4
78,652.2
Total capital (Tier 1+Tier 2)
2,242,274.8
1,962,822.9
Total Risk Weighted Assets (RWAs)
13,727,616.7
10,705,150.5
CET1 CRAR (%)
15.60%
17.12%
Tier-1 CRAR (%)
15.60%
17.60%
Tier-2 CRAR (%)
0.73%
0.74%
Total CRAR (%)
16.33%
18.34%
Leverage Ratio
9.79%
10.27%
Percentage of the shareholding of
a)
Government of India
0.22%
0.20%
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)]
-
-
1. Additionally ` 12,285.2 million raised pursuant to exercise of employee stock options during the year ended March 31, 2024
(year ended March 31, 2023: ` 9,644.4 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%.
180 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The following table sets forth, for the periods indicated, the quarterly average of unweighted and weighted values of the LCR of the Bank. The
quarterly average LCR is computed based on simple average of daily observations during the quarter. Number of observations used in computing
quarterly LCR for three months ended March 31, 2024: 60 days (three months ended December 31, 2023: 61 days: three months ended September 30,
2023: 62 days, three months June 30, 2023: 60 days and three months ended March 31, 2023: 61 days).
` in million
Sr.
No.
Particulars
Three months ended
March 31, 2024
Three months ended
March 31, 2023
Three months ended
December 31, 2023
Three months ended
September 30, 2023
Three months ended
June 30, 2023
Total
unweighted
value
(average)
Total
weighted
value
(average)
Total
unweighted
value
(average)
Total
weighted
value
(average)
Total
unweighted
value
(average)
Total
weighted
value
(average)
Total
unweighted
value
(average)
Total
weighted
value
(average)
Total
unweighted
value
(average)
Total
weighted
value
(average)
High quality liquid assets
1.
Total high quality liquid assets
N.A
3,940,112.5
N.A.
3,234,595.5
N.A 3,720,001.9
N.A 3,610,698.8
N.A. 3,462,355.8
Cash outflows
2.
Retail deposits and deposits from small
business customers, of which:
7,926,612.1
689,376.8
6,764,179.8
573,450.1
7,650,002.7
664,961.7
7,368,971.3
641,826.6
7,048,563.0
612,960.1
(i)
Stable deposits
2,065,686.8
103,284.3
2,059,358.0
102,967.9
2,000,771.5
100,038.6
1,901,410.8
95,070.5
1,837,924.4
91,896.2
(ii)
Less stable deposits
5,860,925.3
586,092.5
4,704,821.8
470,482.2
5,649,231.2
564,923.1
5,467,560.5
546,756.1
5,210,638.6
521,063.9
3.
Unsecured wholesale funding, of which:
4,452,605.4
2,379,461.0
3,607,311.0
1,911,837.1
4,264,068.7 2,264,162.8
4,063,814.7 2,139,024.9
3,812,549.3 1,998,261.5
(i)
Operational deposits
(all counterparties)
-
-
-
-
-
-
-
-
-
-
(ii)
Non-operational deposits
(all counterparties)
4,367,338.4
2,294,194.0
3,550,488.4
1,855,014.5
4,191,932.6 2,192,026.7
3,995,109.0 2,070,319.2
3,749,517.1 1,935,229.3
(iii)
Unsecured debt
85,267.0
85,267.0
56,822.6
56,822.6
72,136.1
72,136.1
68,705.7
68,705.7
63,032.2
63,032.2
4.
Secured wholesale funding
N.A.
-
N.A.
-
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
5.
Additional requirements, of which:
623,174.6
154,427.4
513,975.8
148,357.8
716,876.0
162,208.0
690,348.1
168,378.3
613,926.0
154,406.3
(i)
Outflows related to derivative
exposures and other collateral
requirements
88,848.6
88,848.6
92,369.7
92,369.7
87,401.7
87,401.7
88,905.1
88,905.1
84,403.4
84,403.4
(ii)
Outflows related to loss of funding
on debt products
74.4
74.4
86.6
86.6
70.0
70.0
77.3
77.3
80.4
80.4
(iii)
Credit and liquidity facilities
534,251.6
65,504.4
421,519.5
55,901.5
629,404.3
74,736.3
601,365.7
79,395.9
529,442.2
69,922.5
6.
Other contractual funding obligations
316,201.2
316,201.2
292,688.8
292,688.8
318,432.6
318,432.6
304,873.2
304,873.2
303,366.3
303,366.3
7.
Other contingent funding obligations
6,586,070.8
293,536.9
5,190,402.8
230,232.1
6,180,363.2
273,730.5
5,805,275.6
258,064.1
5,539,350.5
245,523.1
8.
Total cash outflows
N.A
3,833,003.3
N.A.
3,156,565.9
N.A. 3,683,495.6
N.A. 3,512,167.1
N.A. 3,314,517.3
9.
Secured lending (e.g. reverse repos)
26,034.3
0.0
22,171.3
5.7
15,347.9
2.5
37,416.2
N.A
20,083.5
N.A
10.
Inflows from fully performing exposures
737,350.0
526,547.6
629,818.6
458,616.6
702,047.1
505,674.3
656,884.8
469,450.9
608,722.5
429,040.1
11.
Other cash inflows
145,572.1
99,032.2
132,222.9
92,103.8
139,668.2
93,663.6
140,565.3
95,838.8
132,005.1
89,190.1
12.
Total cash inflows
908,956.4
625,579.8
784,212.8
550,726.1
857,063.2
599,340.4
834,866.3
565,289.7
760,811.1
518,230.2
13.
Total HQLA
N.A.
3,940,112.5
N.A.
3,234,595.5
N.A. 3,720,001.9
N.A. 3,610,698.8
N.A. 3,462,355.8
14.
Total net cash outflows (8)-(12)
N.A.
3,207,423.5
N.A.
2,605,839.8
N.A. 3,084,155.2
N.A. 2,946,877.4
N.A. 2,796,287.1
15.
Liquidity coverage ratio (%)
N.A.
122.84%
N.A.
124.13%
N.A.
120.62%
N.A.
122.53%
N.A.
123.82%
Annual Report 2023-24 | 181
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming 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 ` 3,538,601.0 million at
March 31, 2024 (March 31, 2023: ` 2,753,045.5 million).
As per the RBI guidelines, the carve-out from SLR under FALLCR was 16.0% of Net Demand and Time Liabilities
(NDTL) 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 ` 215,857.4
million at March 31, 2024 (March 31, 2023: ` 320,660.8 million). Further, average level 2 assets, primarily consisting
of AA- and above rated corporate bonds and commercial papers, amounted to ` 146,666.4 million at March 31, 2024
(March 31, 2023: ` 127,857.7 million).
At March 31, 2024, top liability products/instruments and their percentage contribution to the total liabilities of the Bank
were term deposits of 43.65% (March 31, 2023: 40.37%), savings account deposits of 21.49% (March 31, 2023: 23.97%),
current account deposits of 10.34% (March 31, 2023: 10.19%) and bond borrowings of 3.33% (March 31, 2023: 4.26%).
Top 20 depositors comprised 3.44% of the total deposits of the Bank at March 31,2024 (March 31, 2023: 3.47%). 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 1.43% of the total liabilities of the Bank at March 31, 2024 (March 31, 2023: 2.48%).
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, 2024, unsecured wholesale funding contributed
62.08% (March 31, 2023: 60.57%) 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 17.99% (March 31, 2023: 18.17%) and 7.66% (March 31, 2023: 7.29%) 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, 2024 was 122.84 % (March 31, 2023: 124.13%). The
Bank also monitors the LCR in US Dollar currency which was the only significant currency, other than Indian Rupee, as it
constituted more than 5.00% of the balance sheet size of the Bank during the year ended March 31, 2024.
182 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming 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.
` in million
Sr.
No. Particulars
For the year ended March 31, 2024
Retail
Banking
Wholesale
Banking
Treasury Other Banking
Business
Total
1.
Revenue
1,345,475.7
717,802.2
1,139,592.2
32,973.0
3,235,843.1
2.
Less: Inter-segment revenue
1,577,356.0
3.
Total revenue (1)–(2)
1,658,487.1
4.
Segment results
188,491.7
199,717.1
148,984.0
7,685.5
544,878.3
5.
Unallocated expenses
-
6.
Operating profit 4)-(5)
544,878.3
7.
Income tax expenses (including
deferred tax credit)
135,995.6
8.
Net profit/(loss) (6)-(7)
408,882.7
9.
Segment assets
7,193,136.2 4,824,561.0
6,282,561.4
348,914.4 18,649,173.0
10. Unallocated assets
65,972.8
11. Total assets (9)+(10)
18,715,145.8
12. Segment liabilities
10,198,454.9 4,565,715.3
3,757,855.61
62,120.0 18,584,145.8
13. Unallocated liabilities
131,000.0
14. Total liabilities (12)+(13)
18,715,145.8
15. Capital expenditure
19,984.4
7,806.3
1,390.0
461.2
29,641.9
16. Depreciation
10,978.1
4,596.4
788.2
263.8
16,626.5
1. Includes share capital and reserves and surplus.
Annual Report 2023-24 | 183
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
'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
year ended March 31, 2024 is sub-divided as below:
` in million
Sr.
No.
Particulars
Segment
revenue
Segment
results
Segment
assets
Segment
liabilities
Capital
expenditure
Depreciation
Retail Banking
1,345,475.7
188,491.7
7,193,136.2
10,198,454.9
19,984.4
10,978.1
(i)
Digital Banking
324,426.1
50,169.4
1,314,019.0
1,855,596.4
1,313.3
721.4
(ii)
Other Retail Banking
1,021,049.6
138,322.3
5,879,117.2
8,342,858.5
18,671.1
10,256.7
` in million
Sr.
No. Particulars
For the year ended March 31, 2023
Retail
Banking
Wholesale
Banking
Treasury Other Banking
Business
Total
1.
Revenue
1,037,753.4
506,148.5
847,707.4
23,830.6
2,415,439.9
2.
Less: Inter-segment revenue
1,124,812.0
3.
Total revenue (1)–(2)
1,290,627.9
4.
Segment results
175,336.8
157,857.8
142,715.5
4,802.2
480,712.3
5.
Unallocated expenses
56,500.0
6.
Operating profit 4)-(5)
424,212.3
7.
Income tax expenses (including
deferred tax credit)
105,247.3
8.
Net profit/(loss) (6)-(7)
318,965.0
9.
Segment assets
6,039,593.7
4,328,743.5
5,084,697.5
297,915.4
15,750,950.1
10. Unallocated assets
91,116.4
11. Total assets (9)+(10)
15,842,066.5
12. Segment liabilities
8,913,545.4
3,472,764.9
3,299,563.51
25,192.7
15,711,066.5
13. Unallocated liabilities
131,000.0
14. Total liabilities (12)+(13)
15,842,066.5
15. Capital expenditure
11,682.9
5,251.8
610.6
277.0
17,822.3
16. Depreciation
9,274.5
3,427.2
335.8
210.4
13,247.9
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:
` in million
Sr.
No.
Particulars
Segment
revenue
Segment
results
Segment
assets
Segment
liabilities
Capital
expenditure
Depreciation
Retail Banking
287,393.4
49,026.3
6,039,593.7
8,913,545.4
2,799.1
2,513.2
(i)
Digital Banking
64,748.7
15,354.8
941,323.5
1,306,703.2
141.5
128.6
(ii)
Other Retail Banking
222,644.7
33,671.5
5,098,270.2
7,606,842.2
2,657.6
2,384.6
184 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming 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.
` in million
Revenues
Year ended
March 31, 2024
Year ended
March 31, 2023
Domestic operations
1,612,412.0
1,257,715.6
Foreign operations
46,075.1
32,912.3
Total
1,658,487.1
1,290,627.9
` in million
Assets1
At
March 31, 2024
At
March 31, 2023
Domestic operations
17,969,093.4
15,019,154.1
Foreign operations
680,079.6
731,796.0
Total
18,649,173.0
15,750,950.1
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
Capital expenditure incurred during
Depreciation provided during
Year ended
March 31, 2024
Year ended
March 31, 2023
Year ended
March 31, 2024
Year ended
March 31, 2023
Domestic operations
29,501.7
17,672.8
16,537.3
13,164.4
Foreign operations
140.2
149.5
89.2
83.5
Total
29,641.9
17,822.3
16,626.5
13,247.9
Annual Report 2023-24 | 185
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming 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, 2024.
` in million
Maturity buckets
Loans &
Advances1
Investment
securities1
Deposits1
Borrowings1
Total foreign
currency
assets2
Total foreign
currency
liabilities2
Day 1
15,713.4
1,620,875.2
224,391.8
1,192.4
207,489.7
9,445.9
2 to 7 days
117,015.6
122,900.5
878,485.9
5,658.2
154,558.8
42,072.9
8 to 14 days
118,591.0
104,055.1
311,589.7
9,954.9
21,681.0
34,131.4
15 to 30 days
339,446.5
198,267.7
388,405.4
55,835.2
92,327.1
91,670.5
31 days to 2 months
474,575.6
177,955.7
459,661.2
74,866.3
132,307.5
75,297.9
2 to 3 months
447,832.2
122,764.1
442,972.9
52,365.5
96,619.9
67,312.5
3 to 6 months
741,381.0
199,852.8
840,735.5
205,182.9
159,443.8
160,196.1
6 months to 1 year
1,262,205.0
258,661.0
1,270,083.1
143,072.1
142,133.0
108,261.3
1 to 3 years
3,320,361.6
390,283.3
1,696,508.0
331,565.7
37,391.0
179,845.9
3 to 5 years
2,357,173.1
620,778.9
3,826,005.6
126,448.7
16,983.1
44,690.8
Above 5 years
2,649,768.9
803,028.4
3,789,410.4
243,533.9
51,573.3
39,559.5
Total
11,844,063.9
4,619,422.7 14,128,249.5
1,249,675.8
1,112,508.2
852,484.7
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, 2023.
` in million
Maturity buckets
Loans &
Advances1
Investment
securities1
Deposits1
Borrowings1
Total foreign
currency
assets2
Total foreign
currency
liabilities2
Day 1
10,042.4
1,245,694.5
127,754.2
-
35,349.4
1,637.6
2 to 7 days
116,565.8
113,368.4
564,803.8
21,086.7
474,567.6
50,108.9
8 to 14 days
95,999.8
67,409.4
228,411.9
10,111.6
68,969.2
24,821.5
15 to 30 days
239,586.3
111,274.4
194,054.5
16,811.4
61,989.4
38,634.4
31 days to 2 months
444,361.0
63,882.2
306,379.7
51,726.9
87,871.1
63,990.3
2 to 3 months
457,284.2
51,112.4
313,978.8
98,068.9
96,509.6
51,706.2
3 to 6 months
665,075.0
114,959.0
559,170.4
92,851.8
93,123.7
75,904.4
6 months to 1 year
1,081,144.6
190,744.3
901,157.0
179,973.3
79,832.7
91,177.0
1 to 3 years
2,883,348.7
397,446.1
1,588,983.4
324,902.8
89,170.3
205,213.2
3 to 5 years
1,891,304.2
576,828.0
3,521,292.8
130,609.0
18,342.9
45,168.3
Above 5 years
2,311,671.1
690,578.7
3,502,420.5
267,112.5
48,785.1
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 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.
186 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
7. Employee Stock Option Scheme (ESOS)/ Employees Stock Unit Scheme (ESUS)
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 Board of Directors at its Meeting held on June 28, 2022, approved the adoption of Employees Stock Unit Scheme
- 2022 (Scheme 2022), which was subsequently approved by the shareholders at the Annual General Meeting held
on August 30, 2022.
As per the Scheme, maximum of 100,000,000 Employee stock units (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. The maximum number of
units granted to any eligible employee shall not exceed 20,000 units in any financial year and 0.14% of the total units
available for grant over a period of seven years from the date of approval of the unit scheme by the shareholders.
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 for each unit (as adjusted for any changes in capital
structure of the Bank).
Units granted under the scheme 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 13 months from the date of grant. Exercise period of
units is five years from the date of vesting, or such shorter period as may be determined by the Board Governance,
Remuneration & Nomination Committee for each grant.
Annual Report 2023-24 | 187
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The weighted average fair value, based on Black-Scholes model, of options granted during the year ended March 31,
2024 was ` 340.59 (year ended March 31, 2023: ` 291.15) and of units granted during the year ended March 31,
2024 was ` 879.43.
The following table sets forth, for the periods indicated, the key assumptions used to estimate the fair value of
options granted.
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Risk-free interest rate
6.88% to 7.32%
5.99% to 7.37%
Expected term
3.23 to 5.23 years
3.23 to 5.23 years
Expected volatility
24.78% to 37.41%
34.79% to 38.98%
Expected dividend yield
0.56% to 0.85%
0.27% to 0.72%
The following table sets forth, for the periods indicated, the key assumptions used to estimate the fair value of
units granted.
Particulars
Year ended
March 31, 2024
Risk-free interest rate
6.82% to 6.94%
Expected term
1.58 to 3.58 years
Expected volatility
23.63% to 36.56%
Expected dividend yield
0.56%
Risk free interest rates over the expected term of the option/units are based on the government securities yield in
effect at the time of the grant. The expected term of an option/units is estimated based on the vesting term as well as
expected exercise behavior of the employees who receive the option/units. Expected exercise behavior is estimated
based on the historical stock option/units exercise pattern of the Bank. Expected volatility during the estimated
expected term of the option/units 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/units 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.
` except number of options
Particulars
Stock options outstanding
Year ended March 31, 2024
Year ended March 31, 2023
Number of
options
Weighted
average
exercise price
Number of
options
Weighted
average
exercise price
Outstanding at the beginning of the year
225,025,803
361.60
237,197,999
310.82
Add: Granted during the year
14,635,600
894.95
25,793,500
747.92
Less: Lapsed during the year, net of
re‑issuance
1,410,025
728.44
3,921,340
568.36
Less: Exercised during the year
39,519,912
296.27
34,044,356
276.72
Outstanding at the end of the year
198,731,466
411.26
225,025,803
361.60
Options exercisable
159,296,026
324.55
172,938,533
289.69
188 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The following table sets forth, the summary of stock options outstanding at March 31, 2024.
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
4,012,005
161.88
1.25
200-399
115,605,713
267.72
3.54
400-599
42,086,634
483.18
3.22
600-799
22,668,214
747.64
5.20
800-899
14,358,900
894.81
6.16
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
7,202,993
160.84
1.85
200-399
145,129,078
267.52
4.37
400-599
48,347,432
479.32
4.15
600-799
24,274,900
747.62
6.17
800-899
71,400
862.88
6.58
The following table sets forth, for the periods indicated, the summary of the status of the Bank’s stock unit plan.
` except number of units
Particulars
Stock Units outstanding
Year ended March 31, 2024
Year ended March 31, 2023
Number of
units
Weighted
average
exercise price
Number of
units
Weighted
average
exercise price
Outstanding at the beginning of the year
-
-
-
-
Add: Granted during the year
4,419,670
2.00
-
-
Less: Lapsed during the year, net of
re-issuance
228,860
2.00
-
-
Less: Exercised during the year
-
-
-
-
Outstanding at the end of the year
4,190,810
2.00
-
-
Units exercisable
2,700
2.00
-
-
At March 31, 2024, the weighted average remaining contractual life of stock units outstanding was 6.24 years.
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, 2024 was ` 972.60 (year ended March 31,
2023: ` 832.00).
8. Subordinated debt
During the year ended March 31, 2024, the Bank has not raised subordinated debt bonds qualifying for Additional
Tier-1 capital (March 31, 2023: Nil) and subordinated debt qualifying for Tier-2 capital (March 31, 2023: Nil).
Annual Report 2023-24 | 189
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming 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).
` in million
Sr.
No.
Particulars
Minimum
outstanding
balance
during the
Maximum
outstanding
balance
during the
Daily average
outstanding
balance
during the
Outstanding
balance at
March 31,
2024
Year ended March 31, 2024
Securities sold under Repo, LAF and MSF
i)
Government Securities
-
266,852.1
139,377.7
-
ii)
Corporate Debt Securities
-
-
-
-
iii)
Any other securities
-
-
-
-
Securities purchased under Reverse Repo and LAF
i)
Government Securities
-
255,318.1
22,778.8
122,381.1
ii)
Corporate Debt Securities
-
-
-
-
iii)
Any other securities
-
-
-
-
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.
` in million
Sr.
No.
Particulars
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
Securities sold under Repo, LAF and MSF
i)
Government Securities
-
244,318.8
137,385.3
-
ii)
Corporate Debt Securities
-
1,000.0
2.7
-
iii)
Any other securities
-
-
-
-
Securities purchased under Reverse Repo and LAF
i)
Government Securities
-
660,560.0
101,231.3
-
ii)
Corporate Debt Securities
-
4,250.0
88.4
-
iii)
Any other securities
-
-
-
-
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
190 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
10. Composition of investments
The following table sets forth, the composition of investments of the Bank at March 31, 2024.
` in million
Investments in India
Investments outside India
Total
Investments
Government
Securities
Other
Approved
Securities
Shares
Debentures
and Bonds
Subsidiaries
and/or joint
ventures
Others
Total
investments
in India
Government
securities
(including
local
authorities)
Subsidiaries
and/or joint
ventures
Others
Total
Investments
outside
India
Held to Maturity
Gross
2,937,502.4
-
54.7
-
77,176.8
4,292.0
3,019,025.9
-
19,698.9
205.6
19,904.5
3,038,930.4
Less: Provision for non-
performing investments
(NPI)
-
-
54.7
-
-
3,718.6
3,773.3
-
-
67.2
67.2
3,840.6
Net
2,937,502.4
-
-
-
77,176.8
573.4
3,015,252.5
-
19,698.9
138.3
19,837.2
3,035,089.8
Available for Sale
Gross
625,156.5
-
56,075.2
185,850.8
19,976.6
206,721.3
1,093,780.4
6,770.6
-
20,848.2
27,618.8
1,121,399.2
Less: Provision for
depreciation and NPI
-
-
30,037.6
6,426.5
-
19,730.2
56,194.2
-
-
3,797.6
3,797.6
59,991.9
Net
625,156.5
-
26,037.6
179,424.4
19,976.6
186,991.1
1,037,586.2
6,770.6
-
17,050.6
23,821.2
1,061,407.3
Held for Trading
Gross
193,296.5
-
758.9
293,225.0
-
2,566.6
489,847.0
33,078.6
-
-
33,078.6
522,925.6
Less: Provision for
depreciation and NPI
-
-
-
-
-
-
-
-
-
-
-
-
Net
193,296.5
-
758.9
293,225.0
-
2,566.6
489,847.0
33,078.6
-
-
33,078.6
522,925.6
Total Investments
3,755,955.3
-
56,888.8
479,075.9
97,153.4
213,579.8
4,602,653.2
39,849.3
19,698.9
21,053.8
80,602.0
4,683,255.2
Less: Provision for non-
performing investments
-
-
54.7
-
-
3,718.6
3,773.3
-
-
67.2
67.2
3,840.5
Less: Provision for
depreciation and NPI
-
-
30,037.6
6,426.5
-
19,730.2
56,194.2
-
-
3,797.6
3,797.6
59,991.8
Net
3,755,955.3
-
26,796.6
472,649.4
97,153.4
190,131.0
4,542,685.7
39,849.3
19,698.9
17,188.9
76,737.1
4,619,422.7
Annual Report 2023-24 | 191
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The following table sets forth, the composition of investments of the Bank at March 31, 2023.
` in million
Investments in India
Investments outside India
Total
Investments
Government
Securities
Other
Approved
Securities
Shares
Debentures
and Bonds
Subsidiaries
and/or joint
ventures
Others
Total
investments
in India
Government
securities
(including
local
authorities)
Subsidiaries
and/or joint
ventures
Others
Total
Investments
outside
India
Held to Maturity
Gross
2,462,155.4
-
54.7
-
48,937.6
4,285.7
2,515,433.4
-
19,698.9
279.5
19,978.4
2,535,411.8
Less: Provision for non-
performing investments
(NPI)
-
-
54.7
-
-
-
54.7
-
-
-
-
54.7
Net
2,462,155.4
-
-
-
48,937.6
4,285.7
2,515,378.7
-
19,698.9
279.5
19,978.4
2,535,357.1
Available for Sale
Gross
573,450.5
-
51,424.6
214,257.2
19,976.5
119,517.2
978,626.0
3,595.4
-
22,532.2
26,127.6
1,004,753.6
Less: Provision for
depreciation and NPI
-
-
29,712.7
9,748.5
-
18,015.9
57,477.1
-
-
4,045.3
4,045.3
61,522.4
Net
573,450.5
-
21,711.9
204,508.7
19,976.5
101,501.3
921,148.9
3,595.4
-
18,486.9
22,082.3
943,231.2
Held for Trading
Gross
22,166.9
-
-
83,585.4
-
-
105,752.3
38,794.0
-
162.8
38,956.8
144,709.1
Less: Provision for
depreciation and NPI
-
-
-
-
-
-
-
-
-
-
-
-
Net
22,166.9
-
-
83,585.4
-
-
105,752.3
38,794.0
-
162.8
38,956.8
144,709.1
Total Investments
3,057,772.8
-
51,479.3
297,842.6
68,914.1
123,802.9
3,599,811.7
42,389.4
19,698.9
22,974.5
85,062.8
3,684,874.5
Less: Provision for non-
performing investments
-
-
54.7
-
-
-
54.7
-
-
-
-
54.7
Less: Provision for
depreciation and NPI
-
-
29,712.7
9,748.5
-
18,015.9
57,477.1
-
-
4,045.3
4,045.3
61,522.4
Net
3,057,772.8
-
21,711.9
288,094.1
68,914.1
105,787.0
3,542,279.9
42,389.4
19,698.9
18,929.2
81,017.5
3,623,297.4
192 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming 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:
` in million
Sr.
No.
Particulars
At
March 31, 2024
At
March 31, 2023
Securities kept as margin with Clearing Corporation of India
towards (CCIL)
i)
Collateral and fund management-Securities Segment
38,500.0
26,050.0
ii)
Collateral and fund management-Tri-Party Repo
351,650.0
356,050.0
iii)
Default Fund-Forex Forward Segment
1,820.0
2,250.0
iv)
Default Fund-Forex Settlement Segment
170.0
220.0
v)
Default Fund-Rupee Derivatives (Guaranteed Settlement)
Segment
820.0
1,920.0
vi)
Default Fund-Securities Segment
270.0
120.0
vii)
Default Fund-Tri-Party Repo Segment
150.0
150.0
Securities kept as margin with the RBI towards
i)
Real Time Gross Settlement (RTGS)
-
-
ii)
Repo Transactions
315,250.0
314,750.0
Securities kept with National Securities Clearing Corporation of India
(NSCCIL) towards NSE Currency Derivative Segment
33,150.0
14,000.0
Securities kept with London clearing house (LCH) Clearnet Limited
towards LCH Currency Derivative Segment
-
9,531.7
11. Government Security lending transactions
The Bank has not undertaken any government securities lending transactions during the year ended March 31, 2024
12. 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.
` in million except percentage
Sr.
No.
Particulars
At
March 31, 2024
At
March 31, 2023
A.
Movement of provisions held towards depreciation on investments
i)
Opening balance
61,577.1
51,415.7
ii)
Add: Provisions made during the year
9,701.3
14,688.5
iii)
Less: Write-off/write-back of excess provisions during the year
(7,445.9)
(4,527.1)
iv)
Closing balance
63,832.5
61,577.1
B.
Movement of Investment Fluctuation Reserve
i)
Opening balance
21,758.8
20,715.0
ii)
Add: Amount transferred during the year
9,927.9
1,043.8
iii)
Less: Drawdown
-
-
iv)
Closing balance
31,686.7
21,758.8
C.
Closing balance in IFR as a percentage of closing balance of
investments in AFS and HFT/Current category
2.00%
2.00%
Annual Report 2023-24 | 193
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
13. 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, 2024.
` in million
Sr.
No.
Issuer
Amount
Extent of
private
placement
Extent of ‘below
investment
grade’ securities
Extent of
‘unrated’
securities2,4
Extent of
‘unlisted’
securities2,4
(a)
(b)
(c)
(d)
1.
PSUs
98,663.0
70,479.8
-
-
42,070.0
2.
FIs
84,963.6
60,519.6
642.8
674.2
102.9
3.
Banks
99,436.3
28,915.9
1,085.2
-
2,394.1
4.
Private corporates
272,182.5
225,008.6
3,595.0
1,008.9
3,404.7
5.
Subsidiaries/ Joint
ventures
116,852.3
5,525.3
-
-
-
6.
Others3,4
255,202.1
213,052.6
18,634.95
-
-
7.
Provision held towards
depreciation
(63,832.4)
-
-
-
-
Total
863,467.4
603,501.7
23,957.9
1,683.1
47,971.7
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 ` 39,849.3 million.
4. Excludes investments in non-SLR Government of India securities amounting to ` 212.2 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, 2023.
` in million
Sr.
No.
Issuer
Amount
Extent of
private
placement
Extent of ‘below
investment
grade’ securities
Extent of
‘unrated’
securities2,4
Extent of
‘unlisted’
securities2,4
(a)
(b)
(c)
(d)
1.
PSUs
34,991.4
15,118.9
-
-
4,920.0
2.
FIs
76,392.3
54,146.0
797.0
181.8
-
3.
Banks
21,652.3
13,341.1
1,069.2
-
2,358.7
4.
Private corporates
237,340.3
200,086.4
2,965.0
695.0
13,375.7
5.
Subsidiaries/ Joint
ventures
88,613.0
5,525.3
-
-
-
6.
Others3,4
168,112.2
125,722.9
20,098.25
-
-
7.
Provision held towards
depreciation
(61,577.1)
-
-
-
-
Total
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.
194 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
ii) Non-performing investments in securities, other than government and other approved securities
The following table sets forth, for the periods indicated, the movement in gross non-performing investments in
securities, other than government and other approved securities.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening balance
44,916.2
40,891.6
Additions during the year
4,007.7
10,106.1
Reduction during the year
(14,172.8)
(6,081.5)
Closing balance
34,751.1
44,916.2
Total provision held
33,478.7
40,394.6
14. Sales and transfers of securities to/from Held to Maturity (HTM) category
During the year ended March 31, 2024 and March 31, 2023, 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.
15. 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.
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
Annual Report 2023-24 | 195
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
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 and USD LIBORs ceased on June 2023 (except for trades whose last fixing was prior to
June 2023 will continue as USD LIBOR linked trades till expiry).
The following tables set forth, for the periods indicated, the details of derivative positions.
` in million
Sr.
No. Particulars
At March 31, 2024
At March 31, 2023
Currency
derivative1
Interest rate
derivative2
Currency
derivative1
Interest rate
derivative2
1.
Derivatives (Notional principal amount)
For hedging
-
396,997.5
-
364,145.0
For trading
3,382,695.6
24,958,775.3
1,662,275.0
23,627,386.6
2.
Marked to market positions (net)3
(25,200.9)
8,345.0
(13,368.4)
9,074.0
a) Asset (+)
28,190.6
92,915.5
36,738.3
97,204.6
b) Liability (-)
(53,391.5)
(84,570.5)
(50,106.7)
(88,130.6)
3.
Credit exposure4
102,347.4
307,963.8
104,371.8
291,761.7
4.
Likely impact of one percentage change in interest rate (100*PV01)5
On hedging derivatives6
-
7,648.7
-
7,813.2
On trading derivatives
849.9
11,203.5
1,467.5
10,770.6
5.
Maximum and minimum of 100*PV01 observed during the period
a)
On hedging6
Maximum
-
9,145.2
-
9,327.0
Minimum
-
6,944.4
-
5,937.8
b) On trading
Maximum
1,499.0
13,061.3
2,948.6
11,379.1
Minimum
849.8
10,631.0
1,416.4
1,489.8
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.
196 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The following tables set forth, for the periods indicated, the details of Foreign exchange contracts.
` in million
Sr.
No. Particulars
At March 31, 2024
At March 31, 2023
Trading
Non-trading
Trading
Non-trading
1.
Foreign exchange contracts
(Notional principal amount)
15,338,457.5
261,764.4
14,350,624.0
979,594.1
2.
Marked to market positions (net)
3,888.0
312.2
467.4
(1,077.4)
1.
Asset (+)
24,402.1
419.4
24,154.1
2,154.3
2.
Liability (-)
(20,514.1)
(107.2)
(23,686.7)
(3,231.7)
3.
Credit exposure1
373,396.2
5,654.7
366,783.1
27,480.1
4.
Likely impact of one percentage
change in interest rate
(100*PV01)2
63.8
4.2
38.9
26.5
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. The excess
collateral posted over the net MTM payable was reckoned as exposure till FY2023. 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, 2024, collateral utilised against the exposure was ` 19,378.6 million
(March 31, 2023: ` 11,761.9 million), excess collateral posted over the exposure was ` 63.5 million (March 31, 2023:
` 1,118.2 million) and the net credit exposure on foreign exchange and derivatives, subsequent to collateral netting,
was ` 770,046.9 million (March 31, 2023: ` 779,752.9 million).
The net overnight open position (NOOP) at March 31, 2024 (as per last NOOP value reported to RBI for the year
ended March 31, 2024) was ` 1,980.0 million (March 31, 2023: ` 4,710.8 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, 2024 (March 31, 2023: Nil).
16. Exchange traded interest rate derivatives and currency derivatives
Exchange traded interest rate derivatives
The following table sets forth, for the periods indicated, the details of exchange traded interest rate derivatives.
` in million
Sr.
No.
Particulars
At
March 31, 2024
At
March 31, 2023
1.
Notional principal amount of exchange traded interest rate
derivatives undertaken during the year
-10 year Government Security Notional Bond
-
-
2.
Notional principal amount of exchange traded interest rate
derivatives outstanding
- 10 year Government Security Notional Bond
-
-
3.
Notional principal amount of exchange traded interest rate
derivatives outstanding and not ‘highly effective’
N.A.
N.A.
4.
Mark-to-market value of exchange traded interest rate derivatives
outstanding and not ‘highly effective’
N.A.
N.A.
Annual Report 2023-24 | 197
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming 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.
` in million
Sr.
No.
Particulars
At
March 31, 2024
At
March 31, 2023
1.
Notional principal amount of exchange traded currency derivatives
undertaken during the year
3,188,224.8
2,582,348.5
2.
Notional principal amount of exchange traded currency derivatives
options outstanding
108,219.1
37,567.3
3.
Notional principal amount of exchange traded currency derivatives
outstanding and not ‘highly effective’
NA
N.A.
4.
Mark-to-market value of exchange traded currency derivatives
outstanding and not ‘highly effective’
NA
N.A.
17. Forward rate agreement (FRA)/Interest rate swaps (IRS)/Cross currency swaps (CCS)
The Bank enters into FRA, IRS and CCS contracts for balance sheet management and market making purposes
whereby the Bank offers derivative products to its customers to enable them to hedge their interest rate risk and
currency risk within the prevalent regulatory guidelines.
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) etc.
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.
` in million
Sr.
No.
Particulars
At
March 31, 2024
At
March 31, 2023
1
Notional principal of FRA/IRS
25,351,178.5
23,972,449.0
2
Losses which would be incurred if all counter parties failed to fulfil
their obligations under the agreement1
92,925.4
97,127.6
3
Collateral required by the Bank upon entering into FRA/IRS
-
-
4
Concentration of credit risk2
4,459.9
5,112.9
5
Fair value of FRA/IRS3
1,332.7
1,963.7
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.
198 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The following table sets forth, for the periods indicated, the details of the CCS.
` in million
Sr.
No.
Particulars
At
March 31, 2024
At
March 31, 2023
1.
Notional principal of CCS1
541,254.0
564,630.0
2.
Losses which would be incurred if all counter parties failed to fulfil
their obligations under the agreement2
17,721.5
30,706.1
3.
Collateral required by the Bank upon entering into CCS
-
-
4.
Concentration of credit risk3
8,491.7
11,907.4
5.
Fair value of CCS4
(16,936.1)
(6,157.1)
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
` in million
Benchmark
Type
At March 31, 2024
At March 31, 2023
Notional
principal
No. of
deals
Notional
principal
No. of
deals
MIBOR
Fixed receivable v/s Floating payable
271,890.0
52
240,890.0
47
USD LIBOR
Fixed receivable v/s Floating payable
-
-
123,255.0
15
USD SOFR
Fixed receivable v/s Floating payable
125,107.5
15
-
-
Total
396,997.5
67
364,145.0
62
Annual Report 2023-24 | 199
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
Trading
` in million
Benchmark
Type
At March 31, 2024
At March 31, 2023
Notional
principal
No. of
deals
Notional
principal
No. of
deals
Bond yield
Sell FRA
92,205.0
262
78,803.6
224
CADCDOR
Floating receivable v/s Fixed payable
565.9
1
678.3
1
CADCDOR
Fixed receivable v/s Floating payable
565.9
1
678.3
1
EURESTR
Fixed receivable v/s Floating payable
53,745.5
18
38,625.8
15
EURESTR
Floating receivable v/s Fixed payable
56,670.8
22
41,076.1
19
EURIBOR
Fixed receivable v/s Floating payable
16,257.4
30
11,849.0
30
EURIBOR
Floating receivable v/s Fixed payable
17,731.5
18
13,697.0
20
GBPSONIA
Floating receivable v/s Fixed payable
4,102.2
9
8,577.5
16
GBPSONIA
Fixed receivable v/s Floating payable
3,180.4
7
5,209.4
11
INBMK
Floating receivable v/s Fixed payable
1,000.0
1
1,000.0
1
INBMK
Fixed receivable v/s Floating payable
1,000.0
1
1,000.0
1
JPYTONAR
Floating receivable v/s Fixed payable
16,141.2
10
5,396.9
7
JPYTONAR
Fixed receivable v/s Floating payable
15,946.4
10
5,852.0
7
MIBOR
Fixed receivable v/s Floating payable
9,969,152.6
14,945
9,624,496.5
14,850
MIBOR
Floating receivable v/s Fixed payable
9,916,916.5
14,091
9,754,197.8
14,677
MIFOR
Fixed receivable v/s Floating payable
-
-
320,642.7
446
MIFOR
Floating receivable v/s Fixed payable
-
-
251,471.2
257
MODMIFOR
Floating receivable v/s Fixed payable
373,715.9
413
101,000.0
125
MODMIFOR
Fixed receivable v/s Floating payable
475,494.2
551
172,100.0
191
OTHERS
Fixed receivable v/s Fixed payable
23,918.2
6
6,289.7
6
T-BILL
Floating receivable v/s Fixed payable
26,066.3
9
26,257.7
9
T-BILL
Fixed receivable v/s Floating payable
69.9
1
5,104.9
2
USD SOFR
v/s USD
LIBOR
Floating receivable v/s Floating
payable
-
-
823.9
1
USDLIBOR
Fixed receivable v/s Floating payable
-
-
449,837.7
411
USDLIBOR
Floating receivable v/s Fixed payable
-
-
612,120.6
532
USDLIBOR
Floating receivable v/s Floating
payable
-
-
177,610.5
40
USDSOFR
Fixed receivable v/s Floating payable
1,810,583.0
954
892,093.9
354
USDSOFR
Floating receivable v/s Fixed payable
2,002,544.7
1,139
1,001,813.0
418
USDSOFR
Floating receivable v/s Floating
payable
76,607.5
23
-
-
Total
24,954,181.0
32,522 23,608,304.0
32,672
200 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The following tables set forth, for the periods indicated, the nature and terms of CCS.
Trading
` in million
Benchmark
Type
At March 31, 2024
At March 31, 2023
Notional
principal
No. of
deals
Notional
principal
No. of
deals
EUR ESTR v/s
USD SOFR
Floating receivable v/s Floating payable
6,313.5
5
1,863.0
2
EURIBOR
Fixed Receivable v/s Floating payable
3,218.5
13
6,374.3
26
EURIBOR
Fixed payable v/s Floating receivable
1,522.4
3
500.0
1
EURIBOR v/s
USD LIBOR
Floating receivable v/s Floating payable
-
-
19,505.6
9
EURIBOR v/s
USD LIBOR
Floating payable v/s Floating receivable
-
-
17,888.5
5
EURIBOR v/s
USD SOFR
Floating payable v/s Floating receivable
-
-
16,434.0
1
EURIBOR v/s
USD SOFR
Floating receivable v/s Floating payable
-
-
541.0
2
GBP SONIA v/s
USD LIBOR
Floating receivable v/s Floating payable
-
-
1,758.5
3
GBP SONIA v/s
USD LIBOR
Floating payable v/s Floating receivable
-
-
1,953.2
5
GBP SONIA v/s
USD SOFR
Floating receivable v/s Floating payable
4,297.5
3
1,971.3
2
GBP SONIA v/s
USD SOFR
Floating payable v/s Floating receivable
3,600.6
8
2,868.1
2
JPY TONAR v/s
USD LIBOR
Floating payable v/s Floating receivable
-
-
369.9
1
MIFOR v/s
USD LIBOR
Floating receivable v/s Floating payable
-
-
4,626.3
3
OTHERS
Fixed receivable v/s Fixed payable
243,640.1
128
190,876.2
174
USD LIBOR
Fixed receivable v/s Floating payable
-
-
135,962.5
78
USD LIBOR
Floating receivable v/s Fixed payable
-
-
74,179.5
57
USD SOFR
Fixed payable v/s Floating receivable
84,243.7
48
35,379.4
15
USD SOFR
Fixed receivable v/s Floating payable
150,095.6
99
33,221.7
25
USD SOFR v/s
EURIBOR
Floating receivable v/s Floating payable
18,512.4
12
16,434.0
1
USD SOFR v/s
EURIBOR
Floating payable v/s Floating receivable
16,465.6
5
-
-
EUR ESTR v/s
USD SOFR
Floating payable v/s Floating receivable
2,995.5
3
1,922.9
1
EUR ESTR
Floating receivable v/s Fixed payable
494.3
1
-
-
USD SOFR VS
JPY TONAR
Floating payable v/s Floating receivable
1,063.3
3
-
-
USD SOFR VS
JPY TONAR
Floating receivable v/s Floating payable
164.7
1
-
-
USD SOFR VS
MOD MIFOR
Floating receivable v/s Floating payable
4,626.3
3
-
-
Total
541,254.0
335
564,629.9
413
1. Benchmark indicates floating leg of the fixed v/s floating CCS.
Annual Report 2023-24 | 201
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
18. Classification of advances and provisions held
The following table sets forth, the classification of advances and provisions held at March 31, 2024.
` in million
Standard
Non-Performing
Total
Total
Standard
Advances
Sub-
standard
Doubtful
Loss
Total Non-
Performing
Advances
Gross Standard Advances and NPAs
Opening balance
10,146,666.3
68,781.1
117,133.4
113,946.2
299,860.7 10,446,527.0
Add: Additions during the period
189,987.9
Less: Reductions during the period*
(216,709.9)
Closing balance
11,791,734.4
87,131.1
91,697.3
94,310.3
273,138.7 12,064,873.1
*Reductions in Gross NPAs due to:
i)
Upgradation
(92,299.3)
ii)
Recoveries (excluding recoveries from upgraded accounts)
(62,428.1)
iii) Technical/prudential write-offs
(52,669.3)
iv) Write-offs other than those under (iii) above
(9,313.2)
Provisions (excluding floating provisions)
Opening balance of provisions held
1,783.9
32,545.7
101,866.2
113,946.2
248,358.1
250,142.0
Add: Fresh provisions made during the period
118,512.2
Less: Excess provision reversed/write-off loans
(147,511.5)
Closing balance of provisions held
1,448.5
44,202.8
80,845.7
94,310.3
219,358.8
220,807.3
Net NPAs
Opening balance
36,233.6
15,267.1
-
51,500.7
Add: Fresh additions during the period
85,465.3
Less: Reductions during the period
(83,188.1)
Closing balance
42,926.4
10,851.5
-
53,777.9
Floating provisions
Opening balance
1.9
Add: Additional provisions made during the period
-
Less: Amount drawn down during the period
-
Closing balance of floating provisions
1.9
Technical write-offs and the recoveries made thereon
Opening balance of technical/prudential written-off accounts
493,636.8
Add: Technical/prudential write-offs during the period
55,237.0
Less: Recoveries made from previously technical/prudential
written-off accounts during the period
(20,166.8)
Less: Sacrifice made from previously technical/prudential
written-off accounts during the period
(6,602.6)
Closing balance
522,104.4
202 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The following table sets forth, the classification of advances and provisions held at March 31, 2023.
` in million
Standard
Non-Performing
Total
Total
Standard
Advances
Sub-
standard
Doubtful
Loss
Total Non-
Performing
Advances
Gross Standard Advances and NPAs
Opening balance
8,523,814.1
85,308.8
177,027.7
70,612.7
332,949.2
8,856,763.3
Add: Additions during the period
183,093.8
Less: Reductions during the period*
(216,182.3)
Closing balance
10,146,666.3
68,781.1 117,133.4 113,946.2
299,860.7 10,446,527.0
*Reductions in Gross NPAs due to:
i)
Upgradation
(90,629.3)
ii)
Recoveries (excluding recoveries from upgraded accounts)
(80,341.0)
iii) Technical/prudential write-offs
(35,788.6)
iv) Write-offs other than those under (iii) above
(9,423.4)
Provisions (excluding floating provisions)
Opening balance of provisions held
2,920.2
39,040.1 153,984.1
70,612.7
263,636.9
266,557.1
Add: Fresh provisions made during the period
116,170.8
Less: Excess provision reversed/write-off loans
(131,449.6)
Closing balance of provisions held
1,783.9
32,545.7 101,866.2 113,946.2
248,358.1
250,142.0
Net NPAs
Opening balance
46,266.8
23,043.6
-
69,310.4
Add: Fresh additions during the period
88,038.6
Less: Reductions during the period
(105,848.3)
Closing balance
36,233.6
15,267.1
-
51,500.7
Floating provisions
Opening balance
1.9
Add: Additional provisions made during the period
-
Less: Amount drawn down during the period
-
Closing balance of floating provisions
1.9
Technical write-offs and the recoveries made thereon
Opening balance of technical/prudential written-off accounts
476,579.1
Add: Technical/prudential write-offs during the period
50,973.4
Less: Recoveries made from previously technical/prudential
written-off accounts during the period
(18,348.5)
Less: Sacrifice made from previously technical/prudential
written-off accounts during the period
(15,567.2)
Closing balance
493,636.8
Annual Report 2023-24 | 203
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
Following table sets forth, for the period indicated, NPA ratios of the Bank.
Particulars
At
March 31, 2024
At
March 31, 2023
Gross NPA to Gross Advances
2.26%
2.87%
Net NPA to Net Advances
0.45%
0.51%
Provision coverage ratio
80.3%
82.8%
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,
2024, the Bank has not classified any loans as NPAs at overseas branches due to host country regulations (at
March 31, 2023: NPAs of ` 8,229.0 million and provision of ` 4,623.0 million which are included in the above table).
19. Divergence in asset classification and provisioning for NPAs
In terms of the RBI circular no. DOR.ACC.REC.No.74/21.04.018/2022-23 dated October 11, 2022, 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 5% (10% till March 31, 2023) of the reported net profits before provisions and contingencies
or (b) the additional gross NPAs identified by RBI exceed 5% (10% till March 31, 2023) 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, 2023 and for the year ended March 31, 2022.
20. General provision on standard assets
The general provision on standard assets held by the Bank at March 31, 2024 was ` 58,631.6 million (March 31,
2023: ` 47,022.4 million). The Bank made general provision on standard assets amounting to ` 11,548.3 million
during the year ended March 31, 2024 (year ended March 31, 2023: ` 5,795.6 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, 2017 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 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%
204 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
21. Priority Sector Lending Certificates (PSLCs)
The following table sets forth, for the periods indicated, details of PSLCs purchased and sold by the Bank.
` in million
Category
Year ended March 31, 2024
Year ended March 31, 2023
Bought
Sold
Bought
Sold
General
-
405,500.0
-
454,245.0
Agriculture
1,097,275.0
57,407.5
704,965.0
-
Micro enterprise
-
417,652.5
11,500.0
287,005.0
Total
1,097,275.0
880,560.0
716,465.0
741,250.0
22. 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:
` in million
Particulars
Year ended March 31, 2024
Year ended March 31, 2023
Loans acquired
Loans sold Loans acquired
Loans sold
Amount of loan
95,674.1
5,923.1
94,688.2
1,875.0
Weighted average residual
maturity (in years)
7.15
9.94
5.63
0.48
Weighted average holding period
of the originator (in years)
1.21
0.53
1.63
0.01
Retention of beneficial economic
interest by the originator
44,799.2
22,762.0
88,563.8
1,625.0
Tangible security coverage (times)
1.37
1.33
4.04
-
1. In addition, the Bank acquired unfunded loans amounting to ` 2,754.1 million (year ended March 31, 2023: ` 3,278.4
million) and sold unfunded loans amounting to `4,265.9 million (year ended March 31, 2023: ` 6,540.0 million) for
year ended March 31, 2024 through novation.
2. In addition, the bank has not acquired any loan through risk participation in secondary market
2.
The following table sets forth, for the period indicated, rating-wise distribution of the loans sold/acquired
under assignment:
` in million
Rating
Year ended March 31, 2024
Year ended March 31, 2023
Loans
acquired
Loans
sold
Loans
acquired
Loans
sold
IND A-, A, A+
2,002.1
-
9,260.2
-
Moody’s B1
4,059.0
-
5,998.4
-
ICRA A-, AA-, AA
3,748.4
3,064.1
5,000.0
-
Crisil A+, AA, A
2,473.2
-
6,410.0
1,875.0
Care BBB
200.0
-
838.0
-
Care AAA
9,962.4
-
-
-
1. Excluding retail and other unrated loans.
Annual Report 2023-24 | 205
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming 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.
` in million, except number of accounts
Particulars
Year ended March 31, 2024
Year ended March 31, 2023
To ARCs
To permitted
transferees
To ARCs
To permitted
transferees
Number of accounts
21
-
9
1
Aggregate principal outstanding of
loans transferred
4,654.3
-
3,045.4
30.2
Weighted average residual tenor
of the loans transferred3
-
-
-
-
Net book value of loans transferred
(at the time of transfer)4
-
-
123.8
-
Aggregate consideration
1,861.92
-
1,606.5
15.7
Additional consideration realized in
respect of accounts transferred in
earlier years
-
-
-
-
1. Excess provision reversed in profit and loss account due to sale of NPAs to ARCs was ` 626.4 million, no amount
was transferred to other permitted transferees (year ended March 31, 2023: ARCs ` 1,482.7 million and permitted
transferees ` 15.7 million).
2. The provision continue towards SRs received as a part of consideration was ` 1,235.4 million
3. Net of write-off
4. 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.
5. Net of write-off and provisions.
2.
The Bank has not sold/acquired loan classified as Special Mention Account (SMA) during the year ended
March 31, 2024 (year ended March 31, 2023: Nil).
3.
The Bank has not acquired non-performing loans during the year ended March 31, 2024 (year ended
March 31, 2023: Nil).
4.
The following table sets forth, for the period indicated, rating-wise distribution of SRs held by the bank.
` in million
Rating
NAV estimate %
At
March 31, 2024
At
March 31, 2023
RR1
Above 100%
3,355.0
4,286.0
RR2
Above 75% upto 100%
-
1,615.4
RR3
Above 50% upto 75%
2,341.8
2,681.1
RR4
Above 25% upto 50%
-
1,507.8
RR5
Upto 25%
7,865.8
6,002.2
Total
13,562.6
16,092.5
1. Amount represents net of provisions.
2. Additionally, the Bank holds, marked-to-market loss of ` 3,980.2 million (March 31, 2023: ` 4,627.3 million) and
additional provision of ` 9,291.4 million (March 31, 2023: ` 9,353.0 million) at March 31, 2024.
206 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
23. Securitisation
Following table sets forth, for the period indicated, details of securitisation of standard assets of the Bank
` in million
Sr.
No.
Particulars
At
March 31, 2024
At
March 31, 2023
1.
Number of SPVs sponsored by the bank for securitisation
transactions during the year
-
-
2.
Total a) No. and b) amount of securitised loans as per books of the
SPVs sponsored by the Bank during the year
-
-
3.
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
-
-
-
217.3
-
-
-
941.2
On-balance sheet exposures
a)
Exposure to own securitisation
•
First loss
•
Others
b)
Exposure to third party securitisation
•
First loss
•
Others
-
-
-
-
-
-
-
-
5.
Sale consideration received for the securitised assets and gain/loss
on sale on account of securitisation1
-
-
6.
Outstanding amount of services provided by way of:
•
credit enhancement2
•
liquidity support
•
post-securitisation asset servicing
2,794.0
209.7
-
3,345.9
209.7
-
Annual Report 2023-24 | 207
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million
Sr.
No.
Particulars
At
March 31, 2024
At
March 31, 2023
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
•
Amount paid
•
Repayment received
•
Outstanding amount2
c)
Liquidity facility
•
Amount paid (0.24%)4,5
•
Repayment received (0.23%)4,5
•
Outstanding amount
-
-
734.9
-
-
1,849.5
0.53
0.53
209.7
-
-
734.9
-
-
2611.0
0.13
0.13
209.7
8.
Average default rate of portfolios observed at the year end
a)
MBS deals (cumulative in %)
1.4
1.4
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
43.5
58
56.3
86
b)
ABS deals
•
Gross Amount
•
Count
-
-
-
-
10.
Investor complaints
(a) Directly/Indirectly received and;
-
-
(b) Complaints outstanding
-
-
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 ` 1,158.5 million for the year ended March 31, 2024 (for the year ended March 31, 2023: ` 1,920.0 million)
3. Insignificant amount
4. Percentage has been derived based on opening outstanding balance of the facility.
5. For the year ended March 31, 2024, amount paid: 0.002% and repayment received: 0.002%. For the year ended March 31, 2023,
amount paid: 0.07% and repayment received: 0.07%
208 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
24. 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, 2024
At March 31, 2023
Number of accounts
restructured
Amount
outstanding
Number of accounts
restructured
Amount
outstanding
1,335
11,506.3
1,908
19,669.8
1. Excludes cases which have been written off
25. Resolution of stressed assets
During the year ended March 31, 2024, the Bank has implemented resolution plan for one borrower amounting to
` 512.4 million (March 31, 2023: seven borrowers for ` 19,286.3 million) under the prudential framework for stressed
assets issued by RBI on June 7, 2019.
26. 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):
` in million
For the six months ended March 31, 2024
Type of
borrower
Exposure to
accounts classified
as Standard
consequent to
implementation of
resolution plan – at
September 30, 2023
(A)
Of (A),
aggregate
debt that
slipped into
NPA during six
months ended
March 31,
20241
Of (A)
amount
written off
during six
months
ended
March 31,
2024
Of (A)
amount
paid by the
borrowers
during six
months
ended March
31, 20242
Exposure
to accounts
classified as
Standard
consequent to
implementation of
resolution plan at
March 31, 2024
Personal Loans3
15,670.5
549.8
17.8
2,080.9
13,039.8
Corporate
persons4
7,975.8
-
-
82.5
7,893.3
Of which MSMEs
-
-
-
-
-
Others
4,313.0
46.9
1.5
238.2
4,027.9
Total
27,959.3
596.7
19.3
2,401.6
24,961.0
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.
Annual Report 2023-24 | 209
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million
For the six months ended September 30, 2023
Type of
borrower
Exposure to
accounts classified
as Standard
consequent to
implementation of
resolution plan –
at March 31, 2023
(A)
Of (A),
aggregate
debt that
slipped into
NPA during six
months ended
September 30,
20231
Of (A)
amount
written off
during six
months
ended
September
30, 2023
Of (A)
amount
paid by the
borrowers
during six
months
ended
September
30, 20232
Exposure to
accounts classified
as Standard
consequent to
implementation
of resolution plan
at September 30,
2023
Personal Loans3
19,607.8
1,119.8
49.8
2,817.5
15,670.5
Corporate persons4
8,109.0
-
-
133.2
7,975.8
Of which, MSMEs
-
-
-
-
-
Others
5,687.6
422.0
25.9
952.6
4,313.0
Total
33,404.4
1,541.8
75.7
3,903.3
27,959.3
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.
` in million
For the six months ended March 31, 2023
Type of
borrower
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
months ended
March 31,
20231
Of (A)
amount
written off
during six
months
ended
March 31,
2023
Of (A)
amount
paid by the
borrowers
during six
months
ended March
31, 20232
Exposure to
accounts classified
as Standard
consequent to
implementation of
resolution plan at
March 31, 2023
Personal Loans3
24,422.2
1,707.7
75.9
3,106.7
19,607.8
Corporate persons4
17,499.5
7,887.3
-
1,503.2
8,109.0
Of which, MSMEs
-
-
-
-
-
Others
6,113.0
226.2
10.3
199.2
5,687.6
Total
48,034.7
9,821.2
86.2
4,809.1
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.
210 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
27. Concentration of Deposits, Advances, Exposures and NPAs
(I) Concentration of deposits, advances, exposures and NPAs
` in million except percentage
Concentration of deposits
At
March 31, 2024
At
March 31, 2023
Total deposits of 20 largest depositors
486,043.2
410,099.2
Deposits of 20 largest depositors as a percentage of total deposits
of the Bank
3.44%
3.47%
` in million except percentage
Concentration of advances1
At
March 31, 2024
At
March 31, 2023
Total advances to 20 largest borrowers (including banks)
1,977,053.9
2,023,084.9
Advances to 20 largest borrowers as a percentage of total
advances of the Bank
8.59%
10.28%
1. Represents credit exposure (funded and non-funded) including derivatives exposures as per RBI guidelines on exposure
norms.
` in million except percentage
Concentration of exposures1
At
March 31, 2024
At
March 31, 2023
Total exposure to 20 largest borrowers/customers (including banks)
2,112,920.7
2,069,491.6
Exposures to 20 largest borrowers/customers as a percentage of
total exposure of the Bank
8.86%
10.22%
1. Represents credit and investment exposures as per RBI guidelines on exposure norms.
` in million except percentage
Concentration of NPAs
At
March 31, 2024
At
March 31, 2023
Total exposure1 to top 20 NPA accounts
115,431.9
159,988.5
Exposure of 20 largest NPA as a percentage of total Gross NPAs.
34.4%
42.71%
1. Represents credit and investment exposures as per RBI guidelines on exposure norms.
Annual Report 2023-24 | 211
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
(II) Sector-wise advances
` in million, except percentages
S
No.
Particulars
At March 31, 2024
Outstanding
advances
Gross NPAs1
% of gross
NPAs1 to total
advances in
that sector
A.
Priority sector
1.
Agriculture and allied activities
829,107.0
35,889.6
4.33%
2.
Advances to industries sector eligible as
priority sector
1,020,024.4
7,796.7
0.76%
3.
Services
of which:
Wholesale trade
Transport operators
1,517,544.0
324,234.0
202,597.2
16,750.4
4,915.1
2,413.2
1.10%
1.52%
1.19%
4.
Personal loans
of which:
Housing
415,885.8
397,949.7
7,707.6
7,329.8
1.85%
1.84%
Sub-total (A)
3,782,561.2
68,144.3
1.80%
B.
Non-priority sector
1.
Agriculture and allied activities
-
-
-
2.
Advances to industries sector
of which:
Infrastructure
1,555,107.4
454,290.1
112,834.5
14,141.1
7.26%
3.11%
3.
Services
of which:
Commercial real estate
Financial Intermediation
Wholesale trade
1,989,264.7
767,356.3
633,744.5
321,761.4
32,014.1
13,797.5
215.0
5,904.4
1.61%
1.80%
0.03%
1.84%
4.
Personal loans2
of which:
Housing
Vehicle/Auto Loans
Credit Card Receivables
4,737,939.8
1,884,493.0
474,727.9
522,876.8
60,145.8
18,198.1
7,759.9
9,673.6
1.27%
0.97%
1.63%
1.85%
Sub-total (B)
8,282,311.9
204,994.3
2.48%
Total (A)+(B)
12,064,873.1
273,138.7
2.26%
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.
212 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
(II) Sector-wise advances
` in million, except percentages
S
No.
Particulars
At March 31, 2023
Outstanding
advances
Gross NPAs1
% of gross
NPAs1 to total
advances in
that sector
A.
Priority sector
1.
Agriculture and allied activities
630,585.6
29,272.7
4.64%
2.
Advances to industries sector eligible as
priority sector
758,377.7
5,991.2
0.79%
3.
Services
of which:
Transport operators
Wholesale trade
1,038,753.5
150,076.4
234,252.1
12,951.7
2,642.6
2,972.6
1.25%
1.76%
1.27%
4.
Personal loans
of which:
Housing
414,876.7
402,748.5
6,486.0
6,427.1
1.56%
1.60%
Sub-total (A)
2,842,593.5
54,701.7
1.92%
B.
Non-priority sector
1.
Agriculture and allied activities
-
-
-
2.
Advances to industries sector
of which:
Infrastructure
1,699,823.5
480,462.6
157,301.1
34,621.6
9.25%
7.21%
3.
Services
of which:
Wholesale Trade
Commercial real estate
Financial Intermediation
1,878,763.6
256,179.9
620,974.9
764,400.9
36,837.5
6,881.6
13,921.0
744.1
1.96%
2.69%
2.24%
0.10%
4.
Personal loans2
of which:
Housing
Vehicle/Auto Loans
4,025,346.4
1,759,930.0
434,159.6
51,020.5
17,044.0
6,465.4
1.27%
0.97%
1.49%
Sub-total (B)
7,603,933.5
245,159.1
3.22%
Total (A)+(B)
10,446,527.0
299,860.7
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.
Annual Report 2023-24 | 213
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
(III) Overseas assets, NPAs1 and revenue
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Total assets2
680,079.6
731,796.0
Total NPAs (net)
395.1
3,790.9
Total revenue2
46,075.1
32,912.3
1. Represents loans and advances.
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, 2024
1.
The following table sets forth, the names of SPVs/trusts sponsored by the Bank/subsidiaries which are
consolidated.
Sr. No. Name of the SPVs 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.
28. Intra-group exposure
The following table sets forth, for the periods indicated, the details of intra-group exposure.
` in million
Sr.
No.
Particulars
At
March 31, 2024
At
March 31, 2023
1.
Total amount of intra-group exposures
155,779.7
176,612.2
2.
Total amount of top 20 intra-group exposures
155,779.6
176,612.2
3.
Percentage of intra-group exposure to total exposures of the Bank
on borrowers/customers
0.65%
0.87%
4.
Details of breach of limits on intra-group exposures and regulatory
action thereon, if any
Nil
Nil
214 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
29. 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.
` in million
Sr.
No.
Particulars
At
March 31, 2024
At
March 31, 2023
1.
Direct investment in equity shares, convertible bonds, convertible
debentures and units of equity-oriented mutual funds, the corpus
of which is not exclusively invested in corporate debt
76,338.6
48,803.9
2.
Advances against shares/bonds/debentures or other securities or
on clean basis to individuals for investment in shares (including
IPOs/ESOPs), convertible bonds, convertible debentures and units
of equity-oriented mutual funds
1,296.2
1,394.3
3.
Advances for any other purposes where shares or convertible
bonds or convertible debentures or units of equity oriented mutual
funds are taken as primary security
30,405.2
23,224.9
4.
Advances for any other purposes to the extent secured by the
collateral security of shares or convertible bonds or convertible
debentures or units of equity oriented mutual funds i.e. where the
primary security other than shares/convertible bonds/convertible
debentures/units of equity oriented mutual funds does not fully
cover the advances
-
-
5.
Secured and unsecured advances to stockbrokers and guarantees
issued on behalf of stock brokers and market makers
355,802.51
162,337.0
6.
All exposures to venture capital funds (both registered and
unregistered)
14,608.8
14,440.7
7.
Others
-
-
Total exposure to capital market2
478,451.3
250,200.8
1. At March 31, 2024, included intra-day exposures amounting to ` 163,051.6 million. Corresponding exposure at March 31, 2023:
` 122,204.0 million.
2. At March 31, 2024, excludes investment in equity shares of ` 25,888.8 million (March 31, 2023: ` 22,588.5 million) exempted
from the regulatory ceiling, out of which investments of ` 7,978.4 million (March 31, 2023: ` 4,650.0 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 ` 16,327.0 million (March 31, 2023: ` 16,330.2 million) were acquired under
other resolution schemes of RBI.
Annual Report 2023-24 | 215
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The following table sets forth, for the periods indicated, the summary of exposure to real estate sector.
` in million
Sr.
No.
Particulars
At
March 31, 2024
At
March 31, 2023
I
Direct exposure
5,115,338.0
4,405,419.9
1.
Residential mortgages
3,898,373.6
3,434,920.2
of which: individual housing loans eligible for priority sector
advances
412,150.5
418,496.4
2.
Commercial real estate1
1,152,820.6
940,828.6
3.
Investments in Mortgage Backed Securities (MBS) and other
securitised exposure
64,143.8
29,671.1
a.
Residential
58,551.7
25,420.4
b.
Commercial real estate
5,592.1
4,250.7
II
Indirect exposure
153,521.8
191,342.0
Fund based and non-fund based exposures on National Housing
Bank (NHB) and Housing Finance Companies (HFCs)
153,521.8
191,342.0
Total exposure to real estate sector
5,268,859.8
4,596,761.9
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.
30. Factoring business
At March 31, 2024, the outstanding receivables acquired by the Bank under factoring business were ` 109,134.0
million (March 31, 2023: ` 54,281.8 million) which are reported under ‘Bills purchased and discounted’ in Schedule
9 – Advances of the balance sheet.
31. Risk category-wise country exposure
As per the extant RBI guidelines, the country exposure of the Bank is categorised into various risk categories listed in
the following table. The funded country exposure (net) of the Bank as a percentage of total funded assets for United
States of America was 1.50% (March 31, 2023: 2.74%). As the net funded exposure to United States of America at
March 31, 2024, exceeded 1% of total funded assets (March 31, 2023: United States of America), the Bank held a
provision of ` 280.0 million on country exposure at March 31, 2024 (March 31, 2023: ` 365.0 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.
` in million
Risk category
Exposure (net) at
March 31, 2024
Provision held at
March 31, 2024
Exposure (net)
at March 31, 2023
Provision held at
March 31, 2023
Insignificant
823,260.5
280.0
1,023,324.6
365.0
Low
309,763.9
-
225,028.2
-
Moderately Low
123,670.0
-
30,962.3
-
Moderate
12,562.2
-
1,522.5
-
Moderately High
11,796.3
-
10,899.2
-
High
0.5
-
118.0
-
Very High
135.2
-
-
-
Total
1,281,188.6
280.0
1,291,854.8
365.0
216 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
32. 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, 2024 (March 31, 2023: Nil).
33. 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, 2024
was ` 54,451.1 million (March 31, 2023: ` 54,723.8 million) as compared to the historical cost less accumulated
depreciation of ` 23,608.2 million (March 31, 2023: ` 24,099.2 million).
The revaluation reserve is not available for distribution of dividend.
34. Fixed Assets
The following table sets forth, for the periods indicated, the movement in software acquired by the Bank, as included
in fixed assets.
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
At cost at March 31 of preceding year
31,434.6
29,157.1
Additions during the year
5,863.2
4,466.7
Deductions during the year
(463.3)
(2,189.2)
Depreciation to date
(26,573.8)
(22,631.2)
Net block
10,260.7
8,803.4
35. Debt assets swap transactions
During the year ended March 31, 2024, the Bank did not acquire any non-banking assets under debt-asset swap
transactions (year ended March 31, 2023: Nil).
During the year ended March 31, 2024, the Bank has sold one non-banking asset having book value of ` 827.7
million for consideration of ` 691.5 million (year ended March 31, 2023: Nil). Assets amounting to ` 2.6 million were
transferred from banking assets to non-banking asset during the year ended March 31, 2024 (year ended March 31,
2023: Nil).
The net book value of non-banking assets acquired in satisfaction of claims by the Bank outstanding at March 31,
2024 amounted to Nil (March 31, 2023: Nil), net of provision held of ` 28,189.9 million (March 31, 2023: ` 29,011.8
million).
Annual Report 2023-24 | 217
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
36. 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.
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
Not later than one year
380.5
298.9
Later than one year and not later than five years
304.3
180.0
Later than five years
13.4
7.1
Total
698.2
486.0
ii.
Total of non-cancellable lease payments recognised in the profit and loss account for the year ended
March 31, 2024 is ` 931.3 million (year ended March 31, 2023: ` 552.6 million).
II.
Assets taken under finance lease
The following table sets forth, for the periods indicated, the details of assets taken on finance leases.
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
1.
Total Minimum lease payments outstanding
Not later than one year
249.8
271.3
Later than one year and not later than five years
359.9
596.1
Later than five years
0.2
14.9
Total
609.9
882.3
2.
Interest cost payable
Not later than one year
42.6
70.0
Later than one year and not later than five years
41.1
83.3
Later than five years
-
0.5
Total
83.7
153.8
3. Present value of minimum lease payments payable(A-B)
Not later than one year
207.2
201.3
Later than one year and not later than five years
318.8
512.8
Later than five years
0.2
14.4
Total
526.2
728.5
218 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
37. Description of contingent liabilities
The following table describes the nature of contingent liabilities of the Bank.
Sr.
no.
Contingent
liability
Brief Description
1.
Claims against
the Bank, not
acknowledged as
debts
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.
2.
Liability for partly
paid investments
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.
3.
Liability on account
of outstanding
forward exchange
contracts
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. 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.
4.
Guarantees
given on behalf
of constituents,
acceptances,
endorsements and
other obligations
This item represents the guarantees and documentary credits issued by the Bank in
favour of third parties on behalf of its customers, as part of its trade finance banking
activities with a view to augment the customers’ credit standing. Through these
instruments, the Bank undertakes to make payments for its customers’ obligations,
either directly or in case the customers fail to fulfill their financial or performance
obligations.
5.
Currency swaps,
interest rate swaps,
currency options
and interest rate
futures
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.
6.
Other items for
which the Bank is
contingently liable
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, 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.
Annual Report 2023-24 | 219
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
38. Insurance business
The following table sets forth, for the periods indicated, the break-up of income derived from insurance business.
` in million
Sr.
No.
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
1.
Income from selling life insurance policies
3,161.4
3,821.2
2.
Income from selling non-life insurance policies
1,250.6
1,030.6
39. Marketing & Distribution
The following table sets forth, for the periods indicated, income received from marketing and distribution function.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Income received in respect of the marketing and distribution
5,427.5
4,928.2
1. Includes referral fees, commission and fees received on distribution/cross selling of various products including mutual funds.
40. 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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening obligations
18,429.1
18,661.0
Service cost
114.8
151.7
Interest cost
1,314.0
1,150.6
Actuarial (gain)/loss
(11.5)
758.2
Past Service Cost
306.91
-
Liabilities extinguished on settlement
(2,137.9)
(2,192.6)
Benefits paid
(95.5)
(99.8)
Obligations at the end of year
17,919.9
18,429.1
Opening plan assets, at fair value
18,190.2
19,843.3
Expected return on plan assets
1,361.0
1,522.0
Actuarial gain/(loss)
439.5
(682.0)
Assets distributed on settlement
(2,375.4)
(2,436.2)
Contributions
401.7
42.9
Benefits paid
(95.5)
(99.8)
Closing plan assets, at fair value
17,921.5
18,190.2
Fair value of plan assets at the end of the year
17,921.5
18,190.2
Present value of the defined benefit obligations at the end of the year
(17,919.9)
(18,429.1)
Amount not recognised as an asset (limit in Para 59(b) of AS 15 on
‘employee benefits’)
-
-
Asset/(liability)
1.6
(238.9)
220 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Cost2
Service cost
114.8
151.7
Interest cost
1,314.0
1,150.6
Expected return on plan assets
(1,361.0)
(1,522.0)
Actuarial (gain)/loss
(451.0)
1,440.2
Past service cost
306.91
-
Curtailments & settlements (gain)/loss
237.5
243.6
Effect of the limit in para 59(b) of AS 15 on ‘employee benefits’
-
(401.9)
Net cost
161.2
1,062.2
Actual return on plan assets
1,800.5
840.0
Expected employer’s contribution next year
400.0
1,000.0
Investment details of plan assets
Government of India securities
41.46%
41.74%
Corporate bonds
46.59%
48.30%
Equity securities in listed companies
9.35%
7.08%
Others
2.60%
2.87%
Assumptions
Discount rate
7.20%
7.30%
Salary escalation rate:
On Basic pay
1.50%
1.50%
On Dearness relief
8.00%
8.00%
Estimated rate of return on plan assets
7.50%
7.50%
1. Represents impact towards dearness allowance neutralization as per IBA notification dated October 16, 2023
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
` in million
Particulars
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2022
Year ended
March 31,
2021
Year ended
March 31,
2020
Fair value of plan assets
17,921.5
18,190.2
19,843.3
21,162.2
16,972.1
Defined benefit obligations
(17,919.9)
(18,429.1)
(18,661.0)
(20,265.6)
(19,914.3)
Amount not recognised as an asset
(limit in para 59(b) of AS 15 on
‘employee benefits’)
-
-
(401.9)
(304.8)
-
Surplus/(deficit)
1.6
(238.9)
780.4
591.8
(2,942.2)
Experience adjustment on plan assets
439.5
(682.0)
(331.9)
521.9
741.1
Experience adjustment on plan
liabilities
(227.0)
805.8
809.0
613.4
2,186.1
Annual Report 2023-24 | 221
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
Gratuity
The following tables set forth, for the periods indicated, movement of the present value of the defined benefit
obligation, fair value of plan assets and other details for gratuity benefits.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening obligations
15,566.4
13,590.0
Add: Adjustment for exchange fluctuation on opening obligations
2.4
12.2
Adjusted opening obligations
15,568.8
13,602.2
Service cost
1,606.4
1,342.3
Interest cost
1,184.7
963.0
Actuarial (gain)/loss
996.8
1,178.0
Past service cost
-
-
Liability transferred from/to other companies
(40.7)
34.5
Benefits paid
(1,304.0)
(1,553.6)
Obligations at the end of the year
18,012.0
15,566.4
Opening plan assets, at fair value
13,920.3
13,577.4
Expected return on plan assets
1,025.6
985.5
Actuarial gain/(loss)
744.2
(499.4)
Contributions
3,586.2
1,375.9
Asset transferred from/to other companies
(40.7)
34.5
Benefits paid
(1,304.0)
(1,553.6)
Closing plan assets, at fair value
17,931.6
13,920.3
Fair value of plan assets at the end of the year
17,931.6
13,920.3
Present value of the defined benefit obligations at the end of the year
(18,012.0)
(15,566.4)
Amount not recognised as an asset (limit in Para 59(b) of AS 15 on
‘employee benefits’)
-
-
Asset/(liability)
(80.4)
(1,646.1)
Cost1
Service cost
1,606.4
1,342.3
Interest cost
1,184.7
963.0
Expected return on plan assets
(1,025.6)
(985.5)
Actuarial (gain)/loss
252.7
1,677.4
Past service cost
-
-
Exchange fluctuation loss/(gain)
2.4
12.2
Effect of the limit in para 59(b) of AS 15 on ‘employee benefits’
-
-
Net cost
2,020.6
3,009.4
Actual return on plan assets
1,769.7
486.1
Expected employer’s contribution next year
1,500.0
1,500.0
Investment details of plan assets
Insurer managed funds
-
-
Government of India securities
39.33%
33.40%
Corporate bonds
44.67%
47.63%
Equity
14.37%
16.71%
Others
1.63%
2.26%
Assumptions
Discount rate
7.20%
7.35%
Salary escalation rate
8.00%
8.00%
Estimated rate of return on plan assets
7.50%
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.
222 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
Experience adjustment
` in million
Particulars
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2022
Year ended
March 31,
2021
Year ended
March 31,
2020
Plan assets
17,931.6
13,920.3
13,577.4
12,934.8
10,877.1
Defined benefit obligations
(18,012.0)
(15,566.4)
(13,590.0)
(12,842.8)
(11,938.7)
Amount not recognised as an asset
(limit in para 59(b) of AS 15 on
‘employee benefits’)
-
-
-
-
-
Surplus/(deficit)
(80.4)
(1,646.1)
(12.6)
92.0
(1,061.6)
Experience adjustment on plan assets
744.2
(499.4)
(64.9)
720.2
(125.0)
Experience adjustment on plan
liabilities
1,007.9
731.6
368.0
(484.5)
181.3
The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.
Provident Fund (PF)
As there is no liability towards interest rate guarantee on exempt provident fund on the basis of actuarial valuation,
the Bank has not made any provision for the year ended March 31, 2024 (year ended March 31, 2023: 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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening obligations
49,069.7
43,128.7
Service cost
3,066.3
2,458.4
Interest cost
3,762.0
3,024.7
Actuarial (gain)/loss
741.2
862.8
Employees contribution
5,126.2
4,163.2
Liability transferred from/to other companies
1,312.8
934.6
Benefits paid
(5,276.7)
(5,502.7)
Obligations at end of the year
57,801.5
49,069.7
Opening plan assets
49,805.1
44,339.6
Expected return on plan assets
4,135.5
3,741.0
Actuarial gain/(loss)
1,216.4
(329.0)
Employer contributions
3,066.3
2,458.4
Employees contributions
5,126.2
4,163.2
Asset transferred from/to other companies
1,312.8
934.6
Benefits paid
(5,276.7)
(5,502.7)
Closing plan assets
59,385.6
49,805.1
Plan assets at the end of the year
59,385.6
49,805.1
Present value of the defined benefit obligations at the end of the year
(57,801.5)
(49,069.7)
Amount not recognised as asset (limit in para 59(b) of AS-15 on
‘employee benefits’)1
(1,584.1)
(735.4)
Asset/(liability)
-
-
Annual Report 2023-24 | 223
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Cost2
Service cost
3,066.3
2,458.4
Interest cost
3,762.0
3,024.7
Expected return on plan assets
(4,135.5)
(3,741.0)
Actuarial (gain)/loss
(475.2)
1,191.8
Effect of the limit in Para 59(b)1
848.6
(475.5)
Net cost
3,066.2
2,458.4
Actual return on plan assets
5,351.9
3,412.0
Expected employer's contribution next year
3,311.6
2,655.0
Investment details of plan assets
Government of India securities
54.31%
55.17%
Corporate bonds
33.88%
35.12%
Special deposit scheme
0.91%
1.08%
Others
10.90%
8.63%
Assumption
Discount rate
7.20%
7.35%
Expected rate of return on assets
7.84%
7.97%
Discount rate for the remaining term to maturity of investments
7.20%
7.40%
Average historic yield on the investment
7.84%
8.01%
Guaranteed rate of return
8.25%
8.15%
1. Pursuant to revised Guidance Note 29 on “Valuation of Interest Rate Guarantees 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.
Experience adjustment
` in million
Particulars
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2022
Year ended
March 31,
2021
Year ended
March 31,
2020
Plan assets
59,385.6
49,805.1
44,339.6
39,349.2
33,424.3
Defined benefit obligations
(57,801.5)
(49,069.7)
(43,128.7)
(39,349.2)
(33,424.3)
Amount not recognised as an asset
(limit in para 59(b) of AS 15 on
‘employee benefits’)1
(1,584.1)
(735.4)
(1,210.9)
-
-
Surplus/(deficit)
-
-
-
-
-
Experience adjustment on plan assets
1,216.4
(329.0)
246.3
530.5
(626.7)
Experience adjustment on plan
liabilities
300.3
476.1
(812.5)
1,467.8
(171.5)
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.
224 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The Bank has contributed `4,837.6 million to provident fund for the year ended March 31, 2024 (year ended March 31,
2023: ` 3,846.1 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 ` 334.3 million for the year ended March 31, 2024 (year ended March 31, 2023: ` 302.0
million) to Superannuation Fund for employees who had opted for the scheme.
National Pension Scheme (NPS)
The Bank has contributed ` 349.3 million for the year ended March 31, 2024 (year ended March 31, 2023: ` 279.8
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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Total actuarial liability
3,715.8
3,079.8
Cost1
1,350.4
694.0
Assumptions
Discount rate
7.20%
7.35%
Salary escalation rate
8.00%
8.00%
1. Included in line item ‘Payments to and provision for employees’ of Schedule-16 Operating expenses.
41. 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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening provision for reward points
4,725.5
3,278.3
Provision for reward points made during the year
16,612.2
12,377.7
Utilisation/write-back of provision for reward points
(14,686.6)
(10,930.5)
Closing provision for reward points1
6,651.1
4,725.5
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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening provision for reward points
199.7
248.0
Provision for reward points made during the year
51.3
103.3
Utilisation/write-back of provision for reward points
(132.9)
(151.6)
Closing provision for reward points
118.1
199.7
Annual Report 2023-24 | 225
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
42. Provisions and contingencies
The following table sets forth, for the periods indicated, the break-up of provisions and contingencies included in
profit and loss account.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Provisions for depreciation of investments1
6,887.9
12,995.4
Provision towards non-performing and other assets2
9,447.9
(6,222.9)
Provision towards income tax
1.
Current
120,506.5
102,544.8
2.
Deferred
15,489.1
2,702.5
Other provisions and contingencies3,4
20,093.4
59,883.3
Total provisions and contingencies
172,424.8
171,903.1
1. During the year ended March 31, 2024, the Bank made a provision of ` 5,104.1 million against its investments in Alternate
Investment Funds (AIFs) as per RBI circular dated December 19, 2023.
2. Includes provision towards NPA (net of write off, recoveries) amounting to ` 14,798.5 million (March 31, 2023: ` 10,166.1 million).
3. No contingency provision was made during the year ended March 31, 2024 (March 31, 2023: provision made ` 56,500.0 million).
4. Includes general provision made towards standard assets, provision on fixed assets acquired under debt-asset swap and non-
fund based facilities.
The Bank has assessed its obligations arising in the normal course of business, including pending litigations,
proceedings pending with tax authorities and other contracts including derivative and long term contracts. In
accordance with the provisions of AS 29 on ‘Provisions, Contingent Liabilities and Contingent Assets’, the Bank
recognises a provision for material foreseeable losses when it has a present obligation as a result of a past event
and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable
estimate can be made. In cases where the available information indicates that the loss on the contingency is
reasonably possible or the amount of loss cannot be reasonably estimated, a disclosure to this effect is made as
contingent liabilities in the financial statements. The Bank does not expect the outcome of these proceedings to have
a materially adverse effect on its financial results.
The following table sets forth, for the periods indicated, the movement in provision for legal and fraud cases,
operational risk and other contingencies.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening provision
41,291.0
43,991.3
Movement during the year (net)
6,210.6
(2,700.3)
Closing provision
47,501.6
41,291.0
1. Excludes provision towards sundry expenses.
43. Provision for income tax
The provision for income tax (including deferred tax) for the year ended March 31, 2024 amounted to ` 135,995.6
million (March 31, 2023: ` 105,247.3 million).
The Bank has a comprehensive system of maintenance of information and documents required by transfer pricing
legislation under section 92-92F of the Income Tax Act, 1961. The Bank is of the opinion that all transactions with
international related parties and specified transactions with domestic related parties are primarily at arm's length
so that the above legislation does not have material impact on the financial statements.
226 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
44. Deferred tax
At March 31, 2024, the Bank has recorded net deferred tax assets of ` 59,546.3 million (March 31, 2023: ` 75,034.5
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.
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
Deferred tax assets
Provision for bad and doubtful debts
93,946.8
104,040.7
Provision for operating expenses
4,026.9
4,026.9
Provision/MTM on investment
6,912.1
5,643.8
Provision for expense allowed on payment basis
4,183.3
3,262.5
Foreign currency translation reserve2
148.0
(615.0)
Others
63.6
67.4
Total deferred tax assets
109,280.7
116,426.3
Deferred tax liabilities
Special reserve deduction
44,338.6
36,735.9
Depreciation on fixed assets
4,953.9
4,449.7
Interest on refund of taxes2
441.9
206.2
Total deferred tax liabilities
49,734.4
41,391.8
Total net deferred tax assets/(liabilities)
59,546.3
75,034.5
1. Tax rate of 25.168% is applied based on Finance Act 2020.
2. These items are considered in accordance with the requirements of Income Computation and Disclosure Standards (ICDS).
45. Details of provisioning pertaining to fraud accounts
The following table sets forth, for the periods indicated, the details of provisioning pertaining to fraud accounts.
` in million, except number of frauds
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Number of frauds reported
29,9932
6,642
Amount involved in frauds
8,166.1
3,853.9
Provision made1
2,423.6
1,570.8
Unamortised provision debited from balance in profit and loss account
under ‘Reserves and Surplus’
-
-
1. Excludes amount written off and interest reversal.
2. Includes digital payment related frauds as per RBI advisory issued on January 13,2024
46. Proposed dividend on equity shares
The Board of Directors at its meeting held on April 27, 2024 has recommended a dividend of ` 10 per equity share
for the year ended March 31, 2024 (year ended March 31, 2023: ` 8 per equity share). The declaration and payment
of dividend is subject to requisite approvals.
Annual Report 2023-24 | 227
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
47. Related party transactions
The Bank has transactions with its related parties comprising subsidiaries, associates/joint ventures/other related
entities, key management personnel and relatives of key management personnel.
I.
Related parties
Subsidiaries, associates/joint ventures/other related entities
Sr. No. Name of the entity
Nature of relationship
1.
ICICI Bank Canada
Subsidiary
2.
ICICI Bank UK PLC
Subsidiary
3.
ICICI Home Finance Company Limited
Subsidiary
4.
ICICI International Limited
Subsidiary
5.
ICICI Investment Management Company Limited
Subsidiary
6.
ICICI Lombard General Insurance Company Limited
Subsidiary1
7.
ICICI Prudential Asset Management Company Limited
Subsidiary
8.
ICICI Prudential Life Insurance Company Limited
Subsidiary
9.
ICICI Prudential Pension Funds Management Company Limited
Subsidiary
10.
ICICI Prudential Trust Limited
Subsidiary
11.
ICICI Securities Holdings Inc.
Subsidiary
12.
ICICI Securities Inc.
Subsidiary
13.
ICICI Securities Limited
Subsidiary
14.
ICICI Securities Primary Dealership Limited
Subsidiary
15.
ICICI Trusteeship Services Limited
Subsidiary
16.
ICICI Venture Funds Management Company Limited
Subsidiary
17.
I-Process Services (India) Private Limited
Subsidiary2
18.
Arteria Technologies Private Limited
Associate
19.
India Advantage Fund-III
Associate
20.
India Advantage Fund-IV
Associate
21.
India Infradebt Limited
Associate
22.
ICICI Merchant Services Private Limited
Associate
23.
NIIT Institute of Finance, Banking and Insurance Training Limited
Associate
24.
ICICI Strategic Investments Fund
Consolidated as per Accounting
Standard (‘AS’) 21
25.
Comm Trade Services Limited
Other related entity
26.
ICICI Foundation for Inclusive Growth
Other related entity
27.
Cheryl Advisory Private Limited
Other related entity
1. ICICI Lombard General Insurance Company Limited ceased to be an associate and became a subsidiary of the Bank w.e.f.
February 29, 2024.
2. I-Process Services (India) Private Limited ceased to be an associate and became a subsidiary of the Bank w.e.f. March 20, 2024
and became a wholly-owned subsidiary of the Bank w.e.f March 22, 2024.
228 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming 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
•
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
2.
Mr. Anup Bagchi
(Upto April 30, 2023)
•
Ms. Mitul Bagchi
•
Mr. Aditya Bagchi
•
Mr. Shishir Bagchi
•
Mr. Arun Bagchi
3.
Mr. Sandeep Batra
•
Mr. Pranav Batra
•
Ms. Arushi Batra
•
Mr. Vivek Batra
•
Ms. Veena Batra
4.
Mr. Rakesh Jha
(w.e.f. September 2, 2022)
•
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
5.
Ms. Vishakha Mulye
(upto May 31, 2022)
•
Mr. Vivek Mulye
•
Ms. Vriddhi Mulye
•
Mr. Vighnesh Mulye
•
Dr. Gauresh Palekar
•
Ms. Shalaka Gadekar
•
Dr. Nivedita Palekar
6.
Mr. Ajay Kumar Gupta
(w.e.f March 15, 2024)
•
Dr. Shabnam Gupta
•
Mr. Akhil Gupta
•
Mr. Aneesh Gupta
•
Mr. Ashok Gupta
•
Mr. Vinay Gupta
•
Ms. Aparna Gupta
•
Ms. Madhu Gupta
•
Ms. Rita Agarwal
•
Ms. Shanti Gupta
•
Shyam Lall Gupta HUF
Annual Report 2023-24 | 229
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
II.
Transactions with related parties
The following table sets forth, for the periods indicated, the significant transactions between the Bank and its related
parties.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Interest income
847.7
884.6
Subsidiaries
484.8
448.8
Associates/joint ventures/others
362.0
432.6
Key management personnel
0.9
3.2
Income from services rendered
6,701.2
6,709.3
Subsidiaries
5,256.6
5,365.9
Associates/joint ventures/others
1,444.4
1,343.4
Key management personnel
0.0
0.0
Relatives of key management personnel
0.2
0.0
Gain/(loss) on forex and derivative transactions (net)2
101.1
(49.0)
Subsidiaries
39.5
(99.8)
Associates/joint ventures/others
61.6
50.8
Dividend income
20,729.1
17,845.6
Subsidiaries
18,146.2
15,498.5
Associates/joint ventures/others
2,582.9
2,347.1
Insurance claims received
2,330.6
1,809.4
Subsidiaries
2,293.3
1,650.0
Associates/joint ventures/others
37.3
159.4
Income from shared services
2,394.4
2,568.6
Subsidiaries
2,185.2
2,279.4
Associates/joint ventures/others
209.2
289.2
Interest expense
687.9
387.8
Subsidiaries
586.7
303.0
Associates/joint ventures/others
77.5
64.9
Key management personnel
14.4
15.3
Relatives of key management personnel
9.3
4.6
Expenses for services received
15,350.8
16,446.3
Subsidiaries
2,331.7
745.0
Associates/joint ventures/others
13,019.1
15,701.3
Insurance premium paid
9,572.7
9,521.8
Subsidiaries
6,971.4
6,717.7
Associates/joint ventures/others
2,601.3
2,804.1
Expenses for shared services and other payments
1,115.5
646.9
Subsidiaries
1,115.5
646.9
CSR related reimbursement of expenses
5,170.0
4,441.1
Associates/joint ventures/others
5,170.0
4,441.1
230 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Volume of fixed deposits placed
18,489.0
15,554.4
Subsidiaries
6,702.6
8,490.7
Associates/joint ventures/others
11,718.6
6,916.7
Key management personnel
37.2
121.2
Relatives of key management personnel
30.6
25.8
Volume of call/reverse repo/term money lent
1,021,540.0
444,200.0
Subsidiaries
1,021,540.0
444,200.0
Purchase of investments
33,904.2
16,750.8
Subsidiaries
33,904.2
16,750.8
Investments in the securities issued by related parties
19,455.9
-
Subsidiaries
2,200.0
-
Associates/joint ventures/others
17,255.9
-
Capital Infusion
-
2,649.9
Subsidiaries
-
2,649.9
Sale of investments
36,060.1
56,799.5
Subsidiaries
23,420.8
41,334.4
Associates/joint ventures/others
12,639.3
15,465.1
Redemption/buyback of investments by Bank
-
50.0
Subsidiaries
-
50.0
Redemption/buyback of investments by related parties
2,500.0
-
Associates/joint ventures/others
2,500.0
-
Purchase of loans
39,196.7
20,574.6
Subsidiaries
39,196.7
20,574.6
Loan given3
2,000.0
1,250.0
Subsidiaries
2,000.0
1,250.0
Funded/Unfunded risk participation
4,802.5
-
Subsidiaries
4,802.5
-
Purchase of fixed assets
1.7
4.9
Subsidiaries
-
1.5
Associates/joint ventures/others
1.7
3.4
Forex/swaps/derivatives and forwards transactions entered
(notional value)
146,228.2
140,654.5
Subsidiaries
139,288.4
134,034.7
Associates/joint ventures/others
6,939.8
6,619.8
Guarantees/letters of credit given by the Bank
258.7
91.5
Subsidiaries
258.6
86.5
Associates/joint ventures/others
0.1
5.0
Guarantees/letters of credit given by the related parties
680.3
83.4
Subsidiaries
680.3
83.4
Annual Report 2023-24 | 231
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Remuneration to wholetime directors4
287.0
336.6
Key management personnel
287.0
336.6
Dividend paid
5.0
3.8
Key management personnel
4.2
3.1
Relatives of key management personnel
0.8
0.7
Value of employee stock options exercised
56.5
290.6
Key management personnel
56.5
290.6
Sale of fixed assets
1.5
0.2
Subsidiaries
1.5
-
Key management personnel
-
0.2
1. 0.0 represents insignificant amount.
2. The Bank undertakes derivative transactions with its subsidiaries, associates, joint ventures and other related entities. The Bank
manages its foreign exchange and interest rate risks arising from these transactions by covering them in the market. While the
Bank, within its overall position limits covers these transactions in the market, the above amounts represent only the transactions
with its subsidiaries, associates, joint ventures and other related entities and not the offsetting/covering transactions.
3. Represents disbursement of term loan. Related parties also avail working capital facilities, intra-day facility and derivative
facility, which are revolving in nature. Volume of these facilities cannot be ascertained and outstanding balance, if any, are
reported suitably.
4. 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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Interest income
1
India Infradebt Limited
348.2
419.0
2
ICICI Securities Primary Dealership Limited
287.8
116.6
3
ICICI Home Finance Company Limited
167.0
317.0
Income from services rendered
1
ICICI Prudential Life Insurance Company Limited
3,274.8
3,927.8
2
ICICI Lombard General Insurance Company Limited
1,451.0
1,192.5
3
ICICI Securities Limited
1,091.1
858.2
Gain/(loss) on forex and derivative transactions (net)
1
ICICI Lombard General Insurance Company Limited
73.8
50.8
2
ICICI Securities Primary Dealership Limited
15.4
124.2
3
ICICI Bank Canada
8.0
(11.1)
4
ICICI Home Finance Company Limited
0.0
(211.3)
232 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Dividend income
1
ICICI Prudential Asset Management Company Limited
7,535.2
6,220.8
2
ICICI Securities Limited
5,135.1
5,437.2
3
ICICI Lombard General Insurance Company Limited
2,476.4
2,240.5
4
ICICI Bank Canada
2,139.5
1,061.6
Insurance claims received
1
ICICI Prudential Life Insurance Company Limited
2,287.9
1,650.0
Income from shared services
1
ICICI Bank UK PLC
682.7
540.8
2
ICICI Securities Limited
461.1
536.4
3
ICICI Bank Canada
361.6
326.8
4
ICICI Prudential Life Insurance Company Limited
162.5
384.0
Interest expense
1
ICICI Securities Limited
562.5
289.8
Expenses for services received
1
I-Process Services (India) Private Limited
11,895.6
10,406.5
2
ICICI Merchant Services Private Limited
2,060.9
5,225.3
Insurance premium paid
1
ICICI Prudential Life Insurance Company Limited
6,721.7
6,717.7
2
ICICI Lombard General Insurance Company Limited
2,851.0
2,804.1
Expenses for shared services and other payments
1
ICICI Home Finance Company Limited
1,047.2
599.6
CSR related reimbursement of expenses
1
ICICI Foundation for Inclusive Growth
5,170.0
4,441.1
Volume of fixed deposits placed
1
I-Process Services (India) Private Limited
6,122.9
4,548.7
2
ICICI Securities Limited
6,035.5
7,478.8
3
ICICI Merchant Services Private Limited
5,330.0
2,000.0
Volume of call/reverse repo/term money lent
1
ICICI Securities Primary Dealership Limited
1,021,540.0
444,200.0
Purchase of investments
1
ICICI Securities Primary Dealership Limited
28,947.2
16,246.1
2
ICICI Prudential Life Insurance Company Limited
4,706.8
504.8
Investments in the securities issued by related parties
1
India Infradebt Limited
17,255.9
-
2
ICICI Home Finance Company Limited
2,200.0
-
Capital Infusion
1
ICICI Home Finance Company Limited
-
2,500.0
Annual Report 2023-24 | 233
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Sale of investments
1
ICICI Prudential Life Insurance Company Limited
10,617.5
19,408.7
2
ICICI Securities Primary Dealership Limited
10,585.7
21,625.8
3
India Infradebt Limited
7,617.1
7,019.7
4
ICICI Lombard General Insurance Company Limited
7,239.8
8,445.4
Redemption/buyback of investments by Bank
1
ICICI Securities Limited
-
50.0
Redemption/buyback of investments by related parties
1
India Infradebt Limited
2,500.0
-
Purchase of loans
1
ICICI Home Finance Company Limited
39,196.7
19,290.7
Loan given
1
ICICI Home Finance Company Limited
2,000.0
1,250.0
Funded/Unfunded risk participation
1
ICICI Bank UK PLC
4,802.5
-
Purchase of fixed assets
1
Arteria Technologies Private Limited
1.7
3.2
2
ICICI Home Finance Company Limited
-
1.3
Forex/swaps/derivatives and forwards transactions entered
(notional value)
1
ICICI Bank UK PLC
89,253.0
81,534.0
2
ICICI Bank Canada
41,389.6
18,916.5
3
ICICI Home Finance Company Limited
5.3
24,151.2
Guarantees/letters of credit given by the Bank
1
ICICI Prudential Asset Management Company Limited
100.0
-
2
ICICI Bank Canada
88.5
31.2
3
ICICI Bank UK PLC
69.5
54.2
Guarantees/letters of credit given by the related parties
1
ICICI Bank UK PLC
659.4
83.4
Remuneration to wholetime directors
1
Mr. Sandeep Bakhshi
99.7
95.7
2
Mr. Sandeep Batra
86.7
85.3
3
Mr. Rakesh Jha
84.0
45.9
4
Mr. Anup Bagchi
13.7
86.5
5
Mr. Ajay Kumar Gupta
2.9
N.A.
6
Ms. Vishakha Mulye
N.A.
23.2
Dividend paid
1
Mr. Sandeep Bakhshi
2.2
1.7
2
Mr. Sandeep Batra
1.4
0.6
234 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
3
Mr. Rakesh Jha
0.6
0.7
4
Mr. Shivam Bakhshi
0.3
0.4
Value of employee stock options exercised
1
Mr. Sandeep Bakhshi
4.7
27.2
2
Mr. Sandeep Batra
13.3
6.4
3
Mr. Rakesh Jha
38.5
-
4
Mr. Anup Bagchi
-
183.2
5
Ms. Vishakha Mulye
N.A.
73.8
Sale of fixed assets
1
ICICI Prudential Life Insurance Company Limited
1.5
-
2
Mr. Rakesh Jha
-
0.1
3
Ms. Vishakha Mulye
N.A.
0.1
1. 0.0 represents insignificant amount.
IV. Related party outstanding balances
The following table sets forth, for the periods indicated, the balances payable to/receivable from related parties.
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
Deposits accepted
24,444.3
24,829.0
Subsidiaries
21,987.1
21,913.1
Associates/joint ventures/others
2,023.2
2,603.0
Key management personnel
294.7
224.6
Relatives of key management personnel
139.3
88.3
Investments of related parties in the Bank
2.3
1.2
Key management personnel
2.1
1.0
Relatives of key management personnel
0.2
0.2
Payables1
4,174.7
3,860.5
Subsidiaries
1,017.4
142.1
Associates/joint ventures/others
3,156.3
3,717.0
Key management personnel
0.2
0.4
Relatives of key management personnel
0.8
1.0
Deposits placed by the Bank
2,122.4
1,519.9
Subsidiaries
2,122.4
1,519.9
Call/term money lent by the Bank
-
6,000.0
Subsidiaries
-
6,000.0
Investments of the Bank
121,270.7
94,344.5
Subsidiaries
111,327.0
69,772.9
Associates/joint ventures/others
9,943.7
24,571.6
Annual Report 2023-24 | 235
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
Advances by the Bank
3,267.6
3,280.6
Subsidiaries
3,075.0
3,003.2
Associates/joint ventures/others
123.0
191.3
Key management personnel
68.8
85.7
Relatives of key management personnel
0.8
0.4
Receivables1
3,804.3
3,633.8
Subsidiaries
3,577.7
2,190.4
Associates/joint ventures/others
226.6
1,443.4
Guarantees/letters of credit/indemnity given by the Bank
1,148.0
1,370.4
Subsidiaries
1,087.8
1,307.3
Associates/joint ventures/others
60.2
63.1
Guarantees/letters of credit/indemnity issued by related parties
927.1
806.5
Subsidiaries
927.1
806.5
Swaps/forward contracts (notional amount)
12,646.1
10,648.9
Subsidiaries
12,646.1
10,648.9
Funded/Unfunded risk participation
806.3
953.3
Subsidiaries
806.3
953.3
1. Excludes mark-to-market on outstanding derivative transactions.
V. Related party maximum balances
The following table sets forth, for the periods indicated, the maximum balances payable to/receivable from related
parties.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Deposits accepted
Subsidiaries
31,501.6
27,024.5
Associates/joint ventures/others
6,815.5
7,119.8
Key management personnel
295.1
384.6
Relatives of key management personnel
139.3
258.6
Investments of related parties in the Bank1
Subsidiaries
-
48.8
Key management personnel
2.1
1.8
Relatives of key management personnel
0.2
0.3
Payables1,2
Subsidiaries
1,017.4
169.8
Associates/joint ventures/others
6,628.1
6,028.6
Key management personnel
0.3
0.4
Relatives of key management personnel
0.9
1.0
Deposits placed by the Bank
Subsidiaries
6,522.9
3,461.2
236 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Call/term money lent by the Bank
Subsidiaries
10,563.3
11,083.0
Investments of the Bank
Subsidiaries
111,327.0
69,772.9
Associates/joint ventures/others
42,350.7
27,932.0
Advances by the Bank
Subsidiaries
16,369.2
9,608.9
Associates/joint ventures/others
224.0
195.3
Key management personnel
85.7
139.2
Relatives of key management personnel
2.5
2.3
Receivables1,2
Subsidiaries
8,414.3
3,930.7
Associates/joint ventures/others
2,302.1
2,181.0
Guarantees/letters of credit/indemnity given by the Bank
Subsidiaries
1,469.2
2,487.1
Associates/joint ventures/others
63.1
63.1
Guarantees/letters of credit/indemnity issued by related parties1
Subsidiaries
1,483.9
859.1
Swaps/forward contracts (notional amount)
Subsidiaries
16,750.2
55,163.8
Funded/Unfunded risk participation1
Subsidiaries
2,292.1
959.7
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.
VI. Letters of comfort
The Bank issues letters of comfort (LoCs) on behalf of its subsidiaries. As required by Reserve Bank of India, the Bank
has carried out an annual financial assessment of LoCs issued on behalf of its subsidiaries, and there is no financial
impact arising from the outstanding LoCs at March 31, 2024 as detailed below.
The Bank has issued a LoC 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. There was no financial impact of this LoC on the Bank at March 31, 2024.
The Bank has issued a LoC on behalf of its banking subsidiary ICICI Bank Canada to the Office of the Superintendent
of Financial Institutions (OSFI), Canada to confirm that it shall provide an ongoing financial, managerial and
operational support to ICICI Bank Canada. There was no financial impact of this LoC on the Bank at March 31, 2024.
Annual Report 2023-24 | 237
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The Bank has issued an undertaking on behalf of ICICI Securities Inc. Singapore for Singapore dollar 10.0 million
(currently equivalent to ` 617.4 million) (March 31, 2023: ` 617.9 million) to the Monetary Authority of Singapore
(MAS) and has also executed seven (March 31, 2023: 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 ` 153.2
million), aggregating to Canadian dollar 17.5 million [currently equivalent to ` 1,072.2 million (March 31, 2023:
` 910.0 million)]. The aggregate amount of ` 1,689.5 million at March 31, 2024 (March 31, 2023: ` 1,527.9 million) is
included in the contingent liabilities.
At the time of demerger of general insurance business of Bharti AXA General Insurance Co. Ltd. to ICICI Lombard
General Insurance Co. Ltd. (ICICI General), and subsequently in relation to increase of Bank’s shareholding in ICICI
General upto 4% in multiple tranches, the Bank had issued undertakings to Insurance Regulatory and Development
Authority of India (IRDAI) that it shall infuse capital, if required by ICICI General, in proportion to its shareholding in
ICICI General at the relevant time to meet its business and/or solvency requirements. There was no financial impact
of these LoCs on the Bank at March 31, 2024.
In addition to the above, the Bank has also issued LoCs in the nature of letters of awareness on behalf of its non-
banking financial subsidiaries ICICI Prudential Life Insurance Co. Ltd. and ICICI Home Finance Co. Ltd. for other
incidental business purposes, to maintain ownership stake and to give information about the ownership and
management. 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.
48. 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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening balance
16,270.6
14,398.8
Add: Amounts transferred during the year
2,266.4
2,150.6
Less: Amounts reimbursed by the Fund towards claims during the year
(840.7)
(278.8)
Closing balance
17,696.3
16,270.6
1. Amount transferred to DEAF is included under "Schedule 12 - Contingent Liabilities - Other items".
49. Details of payment of DICGC insurance premium
The following table sets forth, for the periods indicated, the payment of insurance premium and arrears.
` in million
Sr.
No.
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
1.
Payment of DICGC Insurance Premium1
14,532.6
12,673.7
2.
Arrears in payment of DICGC premium
-
-
1. Excludes goods and service tax.
238 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
50. 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.
` in million
Sr.
No. Particulars
At March 31, 2024
At March 31, 2023
Principal
Interest
Principal
Interest
1.
The Principal amount and the interest due thereon
remaining unpaid to any supplier
-
-
-
-
2.
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
-
-
-
-
3.
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
-
0.2
-
0.1
4.
The amount of interest accrued and remaining unpaid
-
0.2
-
0.1
5.
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
-
-
-
-
51. Penalties/fines imposed by RBI and other banking regulatory bodies
RBI imposed a penalty of ` 121.9 million on October 17, 2023 based on the deficiency observed in regulatory
compliance with the Banking Regulation Act, during statutory inspection for supervision evaluation (ISE 2020 and
ISE 2021) of the Bank conducted by RBI (year ended March 31, 2023: Nil).
52. 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,
Annual Report 2023-24 | 239
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
positive attributes and independence of a Director, framing policies on Board diversity, framing
guidelines for the Employees Stock Option Scheme, Employees Stock Unit Scheme 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.
•
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, 2024, 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 and the Board at their Meetings
held on February 17, 2024 and February 15-17, 2024. The Policy 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, 2024 was 135,900.
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 on variable pay for employees. It also recommends 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
like compliance & audit functions and customer service. The Bank’s performance management
framework is based on the "One Bank, One Team" approach emphasising the overall performance of
the Bank, within the guardrails of risk and compliance. 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.
240 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
During the year ended March 31, 2024, the Bank’s Compensation Policy was reviewed by the BGRNC
and Board as below:
BGRNC date
Board date
Overview of Changes
April 21, 2023
April 22, 2023
•
Incorporating appropriate delegation on the basis of
organization structure.
•
Employees receiving both Performance linked retention
pay (PLRP) and share-linked instruments to be covered
under clawback
•
Change in the criteria for determining MRTs
Circular resolution
dated November
17, 2023
November 24,
2023
•
To capture the treatment of variable pay (cash and share-
linked instruments) in case of retirement or resignation.
To align with the amendments in the New York Stock
Exchange (NYSE) Listed Company Manual (U.S. Securities
Regulations).
February 17, 2024 February 15-17,
2024
•
In order to align the policy in line with the RBI guidelines
dated February 9, 2024 relating to compensation for non-
executive Directors (other than part-time non-executive
Chairman)
•
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 assurance 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) and Risk Appetite Framework
(RAF) for the Bank. The business activities of the Bank are undertaken within this framework. The
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 assurance functions), incorporated relevant
risk management related aspects. For example, in FY2024, in addition to performance indicators in
areas such as Profit before tax excluding treasury gains, 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, risk management framework, stakeholder relationships, timely
compliance and closure of audit issues, 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
Annual Report 2023-24 | 241
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
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 assurance functions), incorporated relevant risk management related aspects
and regulatory compliance. For example, in FY2024, in addition to profit before tax excluding
treasury gains, 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 which 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 FY2024 included profit before tax excluding treasury gains,
regulatory compliance, risk management processes, stakeholder relationships, customer service and
leadership development.
•
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.
242 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
•
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
(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.
` in million except numbers
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
1.
Number of meetings held by the BGRNC during the financial
year
7
5
Remuneration paid to its members during the financial year
(sitting fees)
2.1
1.5
2.
Number of employees having received a variable remuneration
award during the financial year1
52
48
3.
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
-
-
Annual Report 2023-24 | 243
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
` in million except numbers
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
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.)
1,067.4
510.8
247.9
262.9
3,731,800
3,731,800
-
1,142.9
485.6
246.6
239.0
4,277,800
4,277,800
-
6.
Total amount of deferred remuneration paid out during the year
- Bonus4
- Share-linked instruments4 (nos.)
146.3
5,628,640
68.0
8,015,135
7.
Total amount of outstanding deferred remuneration
Cash5
Shares (nos.)
Shares-linked instruments5 (nos.)
Other
474.7
-
8,368,690
-
381.8
-
10,311,910
-
8.
Total amount of outstanding deferred remuneration and
retained remuneration exposed to ex-post explicit and/or
implicit adjustments
- Bonus
- Share-linked instruments (nos.)
474.7
8,368,690
381.8
10,311,910
9.
Total amount of reductions during the year due to ex-post
explicit adjustments6
N.A.
N.A.
10. Total amount of reductions during the year due to ex-post
implicit adjustments
N.A.
N.A.
11. Number of MRTs identified7
43
42
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
-
-
13. 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 (in `)
Mean pay of the bank8
Deviation - MD&CEO9
Deviation - WTD19
Deviation - WTD29
Deviation - WTD39
8,57,602
70,278,131
63,484,688
63,180,904
34,907,850
790,345
74,214,867
52,075,390
67,836,208
65,872,493
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)
and 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.
2. Fixed pay includes basic salary, supplementary allowances, superannuation, and contribution to provident fund, gratuity
fund and value of perquisites. The value of perquisites 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 during the fiscal year. For FY2023, the remuneration
approved for FY2022 (as paid during FY2023) has been considered for MD & CEO and WTDs.
244 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
3. Variable and share-linked instruments represent amounts/ options awarded for the year ended March 31, 2022 and
March 31, 2023 as per RBI approvals wherever applicable.
4. Includes deferred 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 active MRT 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. Incumbents are different for FY2024 and FY2023.
Payment of compensation in the form of remuneration to the Non-Executive Directors
For the year ended March 31, 2024, fixed remuneration of ` 14.2 million has been paid to Non-Executive Directors/
Independent Directors (other than part-time chairman). Mr. Girish Chandra Chaturvedi (part-time Chairman) was
paid a remuneration of ` 3.5 million during FY2024 excluding sitting fees.
Pursuant to RBI circular dated February 9, 2024, each Non-Executive Directors/Independent Directors (other than
part-time chairman) will be paid a remuneration of ` 3.0 million per annum on a pro-rata basis with effect from
February 10, 2024, subject to approval of the shareholders. During the year ended March 31, 2024, provision of
` 1.1 million has been made for making payment for the difference on account of the enhancement on receipt of
shareholders approval.
For the year ended March 31, 2023, 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 excluding sitting fees.
53. CORPORATE SOCIAL RESPONSIBILITY
The Corporate Social Responsibility (CSR) spending obligation for the Bank during the year ended March 31, 2024
was ` 5,172.6 million (March 31, 2023: ` 4,078.4 million).
` in million
Particulars
As at
March 31, 2024
As at
March 31, 2023
Total CSR obligation for the financial year1
5,172.6
4,078.4
Amount of expenditure incurred1
3,684.7
4,766.5
Amount in unspent CSR account/ yet to be paid in cash at the end
of the year2
1,504.0
-
Details of related party transactions (ICICI Foundation for Inclusive
Growth)3
5,170.0
4,441.1
1. Includes spends from surplus generated from CSR activities that was transferred to the Unspent CSR Account and spent within
stipulated timeline, as required by law (FY2024: ` 171.2 million; FY2023: ` 139.9 million).
2. ` 1,500.0 million was budgeted in FY2024 for ongoing project with Tata Memorial Centre but remained unspent. The amount
was transferred to the Unspent CSR Account in April 2024 and would be spent over three years, as per CSR rules.
3. Includes spends from surplus generated from CSR activities that was transferred to unspent CSR account and spent through
ICICI Foundation within stipulated timeline, as required by law (FY2024: ` 171.2 million; FY2023: ` 40.0 million).
Annual Report 2023-24 | 245
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
CSR activities during FY2024 were in the areas of affordable and accessible healthcare, environmental and ecological
projects like afforestation and rainwater harvesting, livelihood projects and social interventions.
The following table sets forth, for the periods indicated, the amount spent by the Bank on CSR related activities.
` in million
Sr.
No. Particulars
Year ended March 31, 2024
Year ended March 31, 2023
In cash
Yet to be
paid in cash
Total
In cash
Yet to be
paid in cash
Total
1.
Construction/ acquisition of any
asset
-
-
-
-
-
-
2.
On purposes other than (1) above1
3,684.7
1,504.0
5,188.7
4,626.6
-
4,626.6
1. For the year ended March 31, 2024, out of the amount (yet to be paid in cash), as required under the Companies (Corporate Social
Responsibility Policy) Amendment Rules, 2021, ` 1,500.0 million budgeted in FY2024 for ongoing project with Tata Memorial
Centre but which remained unspent, was transferred to the Unspent CSR Account in April, 2024 and would be spent over three
years, as per CSR rules. Balance ` 4.0 million pertains to provision made for CSR expenses of FY2024 and amount is yet to
be paid.
The following table sets forth, for the periods indicated, the details of movement in provision pertaining to CSR
related activities
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening balance of provision
-
24.9
Add: Provision for expenses during the year
1,504.0
-
Less: Payment out of opening balance
-
24.9
Closing balance of provision
1,504.0
-
54. Green deposits
The Bank has not yet offered green deposits to its customers.
55. Disclosure of customer complaints
The following table sets forth, for the periods indicated, the movement of complaints received by the Bank from its
customers.
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
a.
No. of complaints pending at the beginning of the year
14,429
10,401
b.
No. of complaints received during the year
346,314
248,337
c.
No. of complaints disposed during the year
338,204
244,309
3a. Of which, number of complaints rejected by the Bank
149,458
101,227
d.
No. of complaints pending at the end of the year
22,539
14,429
1. Complaints do not include complaints redressed by the Bank within one working day.
246 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
The following table sets forth, for the periods indicated, the summary of overall complaints.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
(A) Total number of complaints
534,414
418,992
(B) Complaints redressed by the Bank within one working day
188,100
170,655
(C) Net reported complaints (A-B)
346,314
248,337
The following table sets forth, for the periods indicated, the details of maintainable complaints received.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
i.
Number of maintainable complaints received by the Bank from
Office of Banking Ombudsmans (OBOs)1
14,284
12,114
Of (i), number of complaints resolved in favour of the Bank by
Banking Ombudsmans (BOs)
7,407
5,627
Of (i), number of complaints resolved through conciliation/
mediation/advisories issued by BOs2
6,877
6,487
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)
-
-
1. Maintainable complaints are as per data received from RBI.
2. For year ended March 31, 2024: 683 complaints (March 31, 2023: 432 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, 2024.
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
3
4
5
6
Credit Cards
2,618
129,690
84.7%
8,557
1,299
Internet/Mobile/ Electronic
Banking
9,109
81,332
53.4%
10,607
4,693
ATM/Debit Cards
1,343
71,166
(6.4)%
1,025
104
Loans and advances
211
11,426
3.6%
308
23
Account opening/ difficulty
in operation of accounts
184
9,879
28.2%
329
7
Others
964
42,821
41.2%
1,713
190
Total
14,429
346,314
39.5%
22,539
6,316
Annual Report 2023-24 | 247
Integrated Report
Statutory Reports
Financial Statements
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming 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, 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
3
4
5
6
ATM/Debit Cards
3,655
76,049
(50.4%)
1,343
148
Credit Cards
3,312
70,225
(49.1%)
2,618
367
Internet/Mobile/ Electronic
Banking
2,018
53,011
25.9%
9,109
3,546
Loans and advances
270
11,026
(30.3%)
211
3
Account opening/ difficulty
in operation of accounts
144
7,708
(27.4%)
184
5
Others
1,002
30,318
(39.3%)
964
56
Total
10,401
248,337
(39.4%)
14,429
4,125
56. Drawdown from reserves
The Bank has not drawn any amount from reserves during the year ended March 31, 2024 (year ended March 31,
2023: Nil).
57. 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, 2024 and March 31, 2023, has been transferred without any delay.
58. 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.
During FY2023, Reserve Bank of India, through its discussion paper on “Introduction of Expected Credit Loss
framework for provisioning by banks” has proposed to adopt an expected credit loss framework based on the
approach as per Indian Accounting Standard (Ind AS) 109, supplemented by regulatory backstops wherever
necessary. Further, during FY2024, the Reserve Bank of India (RBI) issued a master direction on classification,
valuation and operation of investment portfolio of commercial banks (Directions), 2023, which became effective
from April 1, 2024. The revised master direction brings the classification and accounting of investments closer to Ind
AS. The Bank has implemented the required changes as per the master direction with effect from April 1, 2024.
248 | Annual Report 2023-24
FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULES
forming part of the Accounts (Contd.)
59. 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.
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.
60. 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
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Ajay Kumar Gupta
Executive Director
DIN-07580795
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
Vinit Jain
Partner
Membership no.: 145911
Mumbai
April 27, 2024
Annual Report 2023-24 | 249
Integrated Report
Statutory Reports
Financial Statements
INDEPENDENT AUDITOR’S REPORT
To the Members of
ICICI Bank Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
1.
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 2024, 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’).
2.
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 2024, 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.
250 | Annual Report 2023-24
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 2024: ` 12,607,762,029 (in ‘000s) Provision for
NPA as at 31 March 2024: ` 222,697,569 (in ‘000s) of which Total Loans and Advances (Net of Provision) as at
31 March 2024: ` 11,844,063,894 (in ‘000s)* & Provision for NPA as at 31 March 2024: ` 219,358,846
(in ‘000s)* relates to Bank.
(Refer Schedule 9, Schedule 17(14))
* the amounts relating to the Bank are before consolidation adjustments including intercompany eliminations, if any.
The Reserve Bank of India’s (“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 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:
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
INDEPENDENT AUDITOR’S REPORT (Contd.)
Annual Report 2023-24 | 251
Integrated Report
Statutory Reports
Financial Statements
Key Audit Matter
How the matter was addressed in our audit
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)/ Centralised Information
Management System (CIMS) to identify stress.
For selected samples, assessed independently, the
accounts that can potentially be classified as NPA.
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 the relevant accounting
standards and RBI requirements relating to NPAs.
Evaluation of Litigations included in Contingent Liabilities
As at 31 March 2024, the Group has reported ‘Claims against the Group not acknowledged as debts’ of
` 110,275,158 (in ‘000s) (31 March 2023 – ` 88,006,837 (in ‘000s)), of which the following relate to the Bank:
(Included under contingent liabilities) (in ‘000)
Particulars
As at
31 March 2024
As at
31 March 2023
Legal Cases
3,829,177
3,027,295
Taxes
89,463,903
78,935,723
Total Claims against Bank not acknowledged as Debt
93,293,080
81,963,018
(Refer Schedule 12 and Schedule 17(11))
The Bank has material open tax litigations including
matters under dispute which involve significant
judgement to determine the possible outcome of these
disputes.
Significant management judgement is needed in
determining whether an obligation exists and whether
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.
INDEPENDENT AUDITOR’S REPORT (Contd.)
252 | Annual Report 2023-24
Key Audit Matter
How the matter was addressed in our audit
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 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
the
litigations
including
understanding of various orders/ notices
received by the Bank and management’s
grounds of appeals before the relevant
appellate authorities.
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.
INDEPENDENT AUDITOR’S REPORT (Contd.)
Annual Report 2023-24 | 253
Integrated Report
Statutory Reports
Financial Statements
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.
INDEPENDENT AUDITOR’S REPORT (Contd.)
254 | Annual Report 2023-24
INDEPENDENT AUDITOR’S REPORT (Contd.)
The joint auditors of ICICI Prudential Life Insurance Company Limited, vide their audit report dated 23 April 2024,
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 financial reporting process relating to ICICI Prudential
Life Insurance Company Limited
The Company is highly dependent on its complex IT
infrastructure comprising hardware, software, multiple
applications, automated interfaces and controls in
systems for recording, storing and reporting of financial
transactions.
The Company's key financial accounting and reporting
processes such as premium income, commission,
benefits paid, investments amongst others are highly
dependent on IT systems including automated controls,
to process and record large volume of transactions on
daily basis as part of its operations, 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.
Due to the pervasive nature, complexity and importance
of the impact of the IT systems and related control
environment on the Company's financial statements,
we have identified testing of such IT systems and
related control environment as a key audit matter for
the current year audit.
Involvement of IT specialists in assessment of the IT
systems and controls with respect to financial statements,
which included, but were not limited to the following:
Obtained an understanding of the Company's
General IT Control (GITC) over key financial
accounting and reporting systems, and supporting
control systems (referred to as in-scope systems);
On the in-scope systems, tested the design and
operating effectiveness of key IT general controls.
This included evaluation of entity's controls to ensure
segregation of duties and access rights are based
on duly approved requests, access for exit cases
being revoked in a timely manner and access of all
users being re- certified during the period of audit,
evaluation of password policies. Further, controls
related to program change were evaluated to verify
whether the changes were approved, tested in an
environment that was segregated from production
and moved to production by appropriate users;
Evaluated the design and tested the operating
effectiveness for the audit period over the in-scope
systems around system interfaces, reconciliations
and system processing relevant to the audit of
premium income, commission expense, benefits
paid and investments, for evaluating completeness
and accuracy;
Evaluated policies and strategies adopted by the
Company in relation to security of key information
infrastructure,
data
and
client
information
management and monitoring;
Where deficiencies, if any, were identified, tested
compensating controls or performed alternative
procedures; and
Obtained written representations from management
on whether IT general controls and automated IT
controls are designed and were operating effectively
during the year.
Annual Report 2023-24 | 255
Integrated Report
Statutory Reports
Financial Statements
INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How the matter was addressed in our audit
Valuation and Impairment determination of Investments relating to ICICI Prudential Life Insurance Company
Limited 31 March 2024 : ` 2,897,360,953 (in ‘000s) (31 March 2023 : ` 2,482,204,207 (in ‘000s))*
(Refer Schedule 8, Schedule 17(13))
* the amounts relating to ICICI Prudential Life Insurance Company Limited are before consolidation adjustments including
intercompany eliminations, if any.
The Company's investment portfolio consists of
Policyholders investments (unit linked and non- linked)
and Shareholders investments. Total investment
portfolio represents around 99% of the Company's
total assets as at 31 March 2024.
Investments are valued in accordance with the Board
approved investment policy framed by the Company
as per the provisions of the Insurance Act, the IRDA
Financial Statements Regulations, IRDAI (Investment)
Regulations, 2016 as the applicable orders/ directions/
circulars issued by IRDAI.
Investments in unit linked portfolio of ` 1,648,424,014
(in ‘000) 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 ` 1,248,936,939 (in ‘000) 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.
Further,
investments
in
the
non-linked
and
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.
Accordingly,
valuation
of
investments
(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.
Audit procedures for this area included but were not
limited to the following:
Obtained an understanding of the Company's
process and controls over the valuation of
investments. The understanding was obtained
by performance of walkthroughs, which included
inspection of documents produced by the Company
and discussion with those involved in the pertinent
process;
Evaluated and 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
the valuation including key authorisation and data
input controls thereof;
Obtained independent external confirmations for
investments as at balance sheet date from the
Custodians and Depository Participants appointed
by the Company to confirm the units of securities for
the purpose of valuation re-computation;
On a test check basis, recomputed valuation
of different class of investments to assess
appropriateness of valuation methodologies with
reference to IRDAI Investment Regulations along
with the Company's Board approved valuation
policy;
Examined movement and appropriateness of
accounting in Fair Value Change account for specific
investments. Further, in case of revaluation done
for investment properties, examined the underlying
valuation report for valuation for testing the
reasonableness and also recomputed the movement
in "Revaluation reserve".
Ensured the appropriateness and reasonableness
of methodology, assumptions and judgements used
by management with reference to the valuation and
impairment of investments as per the Company's
Board approved valuation and impairment policy.
Obtained third party valuation price reports as per the
Company's policy as relevant and understood such
methodology to conclude on the reasonableness.
Obtained written representations from management
on compliance of valuation of investments with the
regulations and adequacy of impairment recorded
for the year.
256 | Annual Report 2023-24
INDEPENDENT AUDITOR’S REPORT (Contd.)
The joint auditors of ICICI Lombard General Insurance Company Limited, vide their audit report dated 17 April 2024,
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 Systems and Controls (IT Controls) related to financial reporting 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.
A number of independent and inter- dependent IT
systems are used by the Company for processing
and recording the large volume of transactions 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 amongst 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 controls implemented by the Company in its
IT environment determine the 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.
Our audit approach relies on automated controls and
therefore, procedures are designed to test. Controls over
IT systems, segregation of duties, interface and system
application controls over key financial accounting and
reporting systems.
Due to, complexity and pervasive impact of the
IT system and related control environment on the
Company’s financial statements, identified testing of
such IT systems and related control environment as a
key audit matter for the current year audit.
Key audit procedures included but were not limited to the
following:
Involvement of IT specialists to perform procedures which
included, but were not limited to the following:
Obtained an understanding of the Company’s
IT related control environment, IT applications
and
databases.
Furthermore,
conducted
a
risk assessment and identified IT applications,
databases that are relevant for the Company’s
financial reporting.
For the IT systems relevant to reporting of
financial information, tested design and operative
effectiveness of key IT general 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 access rights
being provisioned/modified based on duly approved
requests, access for exit cases being revoked in
a timely manner and access of all users being re-
certified during the period of audit. Further, controls
related to program change were evaluated to
verify whether the changes were approved, tested
in an environment that was segregated from
production and moved to production by appropriate
users. Where deficiencies were identified, tested
compensating controls and/or performed additional
substantive audit procedures as required to mitigate
any risk of material misstatement with respect to
related financial statement line item.
Evaluated the design and tested the operating
effectiveness
of
critical
and
key
automated
controls within various business processes around
the software systems. This included testing the
integrity of system interfaces, report logic for
system generated reports relevant to the audit
of premium Income, commission expense, claims
and Investments, for evaluating completeness and
accuracy.
Annual Report 2023-24 | 257
Integrated Report
Statutory Reports
Financial Statements
Key Audit Matter
How the matter was addressed in our audit
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.
Obtained written representations from management
on whether IT general controls and automated IT
controls are designed and were operating effectively
during the year.
Investments of ICICI Lombard General Insurance Company Limited
The
Company's
investment
portfolio
consists
of
Policyholders
investments
and
Shareholders
investments. Total Investment portfolio represents 77%
of the assets as at 31 March 2024 which are valued in
accordance with accounting policy framed as per the
extant regulatory guidelines.
The valuation of all investments is as per the investment
policy framed by the Company as per the requirements
contained in with IRDAI (Investment) Regulations,
2016, and the IRDA Preparation of Financial Statement
Regulations. The valuation methodology specified in
these aforesaid regulations is applied by the Company
for each class of investment which includes various
measurement techniques such as amortised cost, fair
value etc.
The Company has a policy framework for Valuation and
impairment of Investments. The Company performs an
impairment review of its investments at each balance
sheet date 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. Such assessment of impairment
involves significant management judgment.
The 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 and thereby
identified as a key audit matter for current year audit.
Audit procedures on Investments included the following:
Understood Company's process and controls to
ensure proper investments valuation and impairment
process.
Tested the design, implementation, management
oversight and operating effectiveness of key controls
over the valuation process of investments including
impairment.
Obtained independent external confirmations for
investments as at balance sheet date from the
Custodians and Depository Participants appointed
by the Company to confirm the units of securities for
the purpose of valuation re-computation.
On a test check basis, recomputed 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.
Examined movement and appropriateness of
accounting in Fair Value Change account for specific
investments.
Reviewed the Company's impairment policy and
assessed the adequacy of its impairment charge on
investments outstanding at the year end.
Examined the rating downgrades by credit rating
agencies and assessed the adequacy of impairments
to various investments.
Evaluated appropriateness and reasonableness of
methodology, assumptions and judgements used
by management with reference to the Company's
investment valuation and impairment assessment
as per policy.
Obtained written representations from management
on compliance of valuation of investments with the
regulations and adequacy of impairment recorded
for the year.
INDEPENDENT AUDITOR’S REPORT (Contd.)
258 | Annual Report 2023-24
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.
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.
INDEPENDENT AUDITOR’S REPORT (Contd.)
Annual Report 2023-24 | 259
Integrated Report
Statutory Reports
Financial Statements
INDEPENDENT AUDITOR’S REPORT (Contd.)
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;
•
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.
260 | Annual Report 2023-24
INDEPENDENT AUDITOR’S REPORT (Contd.)
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 23 April 2024 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 2024 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 2024 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
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 17 April 2024, 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 2024 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 sixteen subsidiaries (including ICICI Lombard General Insurance Company
Limited from 29 February 2024 and I-Process Services (India) Private Limited from 20 March 2024), whose financial
statements reflect total assets of ` 4,689,114,347 (in ‘000s) (before consolidation adjustments) as at 31 March 2024,
total revenue of ` 713,613,428 (in ‘000s) (before consolidation adjustments), total net profit after tax of ` 57,346,248
(in ‘000s) (before consolidation adjustments) and total cash inflows (net) of ` 51,998,091 (in ‘000s) for the year
ended 31 March 2024, which have been audited by their respective independent auditors. The consolidated financial
statement includes the Group's share of net profit of ` 10,493,322 (in ‘000s) (before consolidation adjustments) for
year ended 31 March 2024 in respect of five associates (including ICICI Lombard General Insurance Company Limited
till 28 February 2024 and I-Process Services (India) Private Limited till 19 March 2024) 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
Annual Report 2023-24 | 261
Integrated Report
Statutory Reports
Financial Statements
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. Further, one subsidiary company whose financial statement reflects total assets of ` 167,418 (in ‘000s) (before
consolidation adjustments) as at 31 March 2024 and total revenues of ` 8,842 (in ‘000s) (before consolidation
adjustments) and total net profit after tax of ` 7,601 (in ‘000s) (before consolidation adjustments) for the year ended
31 March 2024 respectively and the total cash inflows (net) of ` 33 (in ‘000s) for the year ended 31 March 2024,
as considered in the Statement has been audited by M S K A & Associates, one of the joint auditors of the Bank.
Accordingly, the conclusion of KKC & Associates LLP (formerly Khimji Kunverji & Co LLP), the other joint auditor of the
Bank, in so far as it relates to the amounts and disclosures included in respect of this subsidiary, is based solely on
the audit report issued by the joint auditors of the subsidiary company and the procedures performed as stated in
paragraph 11 above. Our opinion is not modified in respect of these matters.
19. We did not audit the financial Statement of one subsidiary, whose financial statements reflect total assets
of ` 361,001,808 (in ‘000s) (before consolidation adjustments), total revenue of ` 19,330,122 (in ‘000s) (before
consolidation adjustments), total net profit after tax of ` 4,500,705 (in ‘000s) (before consolidation adjustments) and
total cash inflows (net) of ` (2,439,495) (in ‘000s) for the year ended 31 March 2024. 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 ` 244,338 (in ‘000s)
(before consolidation adjustments) for the year ended 31 March 2024 respectively in respect of three 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, this financial statements / financial information are not material
to the Group. Our opinion is not modified in respect of these matters.
20. 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
21. 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.
22. 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 three associates, as referred to in paragraph 19 above, whose financial
statements/information have not been audited, in absence of reporting of such entities with respect to compliance of
INDEPENDENT AUDITOR’S REPORT (Contd.)
262 | Annual Report 2023-24
the provisions of section 197 read with Schedule V of the Act during the year ended 31 March 2024, 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.
23. 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 subsidiaries and associates we report, to
the extent applicable, that:
a.
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.
b.
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 except the matters stated in the paragraph 23(h)(vi) below relating to the general insurance
subsidiary on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
c.
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.
d.
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.
e.
The observation relating to the maintenance of accounts and other matters connected therewith relating to the
general insurance subsidiary as stated in the paragraph 23(b) above on reporting under Section 143(3)(b) of
the Act and paragraph 23(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors)
Rules, 2014.
f.
On the basis of the written representations received from the directors of the Bank as on 31 March 2024 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 2024 from being appointed as a
director in terms of Section 164 (2) of the Act.
g.
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”.
h.
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:
i.
The consolidated financial statements disclose the impact of pending litigations as at 31 March 2024 on
the consolidated financial position of the Group and its associates. (Refer Schedule 12, Schedule 17(11)
and Schedule 18(6) to the consolidated financial statements)
INDEPENDENT AUDITOR’S REPORT (Contd.)
Annual Report 2023-24 | 263
Integrated Report
Statutory Reports
Financial Statements
ii.
Provision has been made in the consolidated financial statements as at 31 March 2024, 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(11) 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.
v.
In our opinion and according to the information and explanations given to us, the dividend declared and /
or paid during the year the Group and its associates is in compliance with Section 123 of the Act.
vi.
Based on our examination, which included test checks, and that performed by the respective auditors of
the subsidiaries and associates which are companies incorporated in India whose financial statements
have been audited under the Act, except for the instances mentioned below, the Bank, subsidiaries and
associates have used an accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, during the course of our audit, we and respective auditors
of the above referred subsidiaries and associates did not come across any instance of audit trail feature
being tampered with.
INDEPENDENT AUDITOR’S REPORT (Contd.)
264 | Annual Report 2023-24
In respect of the general insurance subsidiary, the auditors have reported that they were not able to test the audit trail
feature for one accounting software used for maintaining policy and claim records related to the insurance business
demerged from Bharti Axa General Insurance Company Limited, since its usage was discontinued w.e.f. 31 October 2023
and another accounting software which is used for maintenance of commission and reinsurance records at the database
level where the audit trail feature was enabled w.e.f. 15 March 2024.
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: 24118580BKFLYB7746
Vinit Jain
Partner
Membership Number.: 145911
UDIN: 24145911BKFXMQ1407
Place: Mumbai
Date: 27 April 2024
Place: Mumbai
Date: 27 April 2024
INDEPENDENT AUDITOR’S REPORT (Contd.)
Annual Report 2023-24 | 265
Integrated Report
Statutory Reports
Financial Statements
Annexure A to the Independent Auditors’ Report on the Consolidated
Financial Statements Of ICICI Bank Limited for the year ended 31 March 2024
(Referred to in paragraph “23g” 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.
In conjunction with our audit of the consolidated financial statements of the Bank as of and for the year ended 31
March 2024, 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.
2.
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 2024, 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.
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.
5.
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
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.
266 | Annual Report 2023-24
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 2024 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 2024. 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 2024 has been duly certified by the Appointed Actuary and in his opinion, the assumptions considered
by him for such valuation are in accordance with the guidelines and norms issued by the IRDAI and the Institute of
Actuaries of India in concurrence with the IRDAI. The said actuarial valuations of liabilities for outstanding claims
reserves and the PDR have been relied upon by us as mentioned in Other Matters paragraph in our Audit Report on
the financial statements for the year ended 31 March 2024. Accordingly, our opinion on the internal financial controls
with reference to financial statements does not include reporting on the adequacy and operating effectiveness of the
internal controls over the valuation and accuracy of the aforesaid actuarial liabilities’.
Annexure A (Contd.)
Annual Report 2023-24 | 267
Integrated Report
Statutory Reports
Financial Statements
Annexure A (Contd.)
11. 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 twelve
subsidiary companies and one 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. 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.
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: 24118580BKFLYB7746
Vinit Jain
Partner
Membership Number.: 145911
UDIN: 24145911BKFXMQ1407
Place: Mumbai
Date: 27 April 2024
Place: Mumbai
Date: 27 April 2024
268 | Annual Report 2023-24
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CONSOLIDATED BALANCE SHEET
at March 31, 2024
` in ‘000s
Schedule
At
31.03.2024
At
31.03.2023
CAPITAL AND LIABILITIES
Capital
1
14,046,790
13,967,750
Employees stock options outstanding
1A
14,053,180
7,608,859
Reserves and surplus
2
2,533,338,376
2,123,401,284
Minority interest
2A
138,884,162
66,867,526
Deposits
3
14,435,799,524
12,108,321,521
Borrowings
4
2,074,280,008
1,890,618,073
Liabilities on policies in force
2,813,183,300
2,388,673,665
Other liabilities and provisions
5
1,617,044,935
985,446,292
TOTAL CAPITAL AND LIABILITIES
23,640,630,275
19,584,904,970
ASSETS
Cash and balances with Reserve Bank of India
6
899,430,231
686,489,413
Balances with banks and money at call and short notice
7
728,258,795
678,075,515
Investments
8
8,271,625,050
6,395,519,671
Advances
9
12,607,762,029
10,838,663,147
Fixed assets
10
132,402,763
109,690,036
Other assets
11
976,409,788
875,453,870
Goodwill on consolidation
24,741,619
1,013,318
TOTAL ASSETS
23,640,630,275
19,584,904,970
Contingent liabilities
12
57,578,163,337
50,359,511,032
Bills for collection
1,007,917,603
864,576,684
Significant accounting policies and notes to accounts
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
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
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Ajay Kumar Gupta
Executive Director
DIN-07580795
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
Vinit Jain
Partner
Membership no.: 145911
Mumbai
April 27, 2024
Annual Report 2023-24 | 269
Integrated Report
Statutory Reports
Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended March 31, 2024
` in ‘000s
Schedule
Year ended
31.03.2024
Year ended
31.03.2023
I.
INCOME
Interest earned
13
1,595,159,252
1,210,668,098
Other income
14
765,218,020
651,119,912
TOTAL INCOME
2,360,377,272
1,861,788,010
II.
EXPENDITURE
Interest expended
15
741,081,627
505,433,879
Operating expenses
16
977,827,922
824,390,232
Provisions and contingencies (refer note 18.6)
191,400,276
187,333,629
TOTAL EXPENDITURE
1,910,309,825
1,517,157,740
III. PROFIT/(LOSS)
Net profit for the year (before share in profit of
associates and minority interest)
450,067,447
344,630,270
Add: Share of profit in associates
10,737,680
9,982,876
Net profit for the year before minority interest
460,805,127
354,613,146
Less: Minority interest
18,241,392
14,246,738
Net profit for the year after minority interest
442,563,735
340,366,408
Profit brought forward
656,386,769
508,988,514
TOTAL PROFIT/(LOSS)
1,098,950,504
849,354,922
IV. APPROPRIATIONS/TRANSFERS
Transfer to Statutory Reserve
102,221,000
79,742,000
Transfer to Capital Reserve
332,500
878,200
Transfer to/(from) Investment Fluctuation Reserve
9,927,900
1,043,810
Transfer to Special Reserve
31,353,000
26,254,000
Transfer to/(from) Revenue and other reserves
872,340
50,255,680
Dividend paid during the year
55,985,964
34,794,463
Balance carried over to balance sheet
898,257,800
656,386,769
TOTAL
1,098,950,504
849,354,922
Significant accounting policies and notes to accounts
17 & 18
Earnings per share (refer note 18.1)
Basic (`)
63.19
48.86
Diluted (`)
61.96
47.84
Face value per share (`)
2.00
2.00
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
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
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Ajay Kumar Gupta
Executive Director
DIN-07580795
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
Vinit Jain
Partner
Membership no.: 145911
Mumbai
April 27, 2024
270 | Annual Report 2023-24
` in ‘000s
Year ended
31.03.2024
Year ended
31.03.2023
Cash flow from/(used in) operating activities
Profit/(loss) before taxes
596,839,961
458,300,782
Adjustments for:
Depreciation and amortisation
19,958,856
16,351,038
Net (appreciation)/depreciation on investments
16,172,037
27,053,455
Provision in respect of non-performing and other assets
9,635,716
(3,653,501)
General provision for standard assets
11,658,491
4,898,941
Provision for contingencies & others
8,780,202
54,236,861
(Profit)/loss on sale of fixed assets
(144,093)
(542,579)
Employees stock options expense
7,029,081
5,180,508
(i)
669,930,251
561,825,505
Adjustments for:
(Increase)/decrease in investments
167,355,354
(158,286,285)
(Increase)/decrease in advances
(1,782,646,848)
(1,638,931,648)
Increase/(decrease) in deposits
2,329,930,107
1,194,663,589
(Increase)/decrease in other assets
18,818,794
(165,971,353)
Increase/(decrease) in other liabilities and provisions
302,893,172
277,742,529
(ii)
1,036,350,579
(490,783,168)
Refund/(payment) of direct taxes
(iii)
(133,436,047)
(108,754,258)
Net cash flow from/(used in) operating activities (i)+(ii)+(iii)
(A)
1,572,844,783
(37,711,921)
Cash flow from/(used in) investing activities
Purchase of fixed assets
(36,785,464)
(24,676,808)
Proceeds from sale of fixed assets
698,893
2,874,176
(Purchase)/sale of held to maturity securities
(1,423,224,353)
(658,250,590)
Net cash flow from/(used in) investing activities
(B)
(1,459,310,924)
(680,053,222)
Cash flow from/(used in) financing activities
Proceeds from issue of share capital (including ESOPs)
11,708,675
9,420,691
Proceeds from long-term borrowings
391,968,191
417,361,966
Repayment of long-term borrowings
(391,468,771)
(268,917,978)
Net proceeds/(repayment) of short-term borrowings
181,423,005
124,836,960
Dividend paid
(55,985,964)
(34,794,463)
Net cash flow from/(used in) financing activities
(C)
137,645,136
247,907,176
Effect of exchange fluctuation on translation reserve
(D)
4,234,435
3,163,063
Net increase/(decrease) in cash and cash equivalents
(A) + (B) + (C) + (D)
255,413,430
(466,694,904)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CONSOLIDATED CASH FLOW STATEMENT
for the year ended March 31, 2024
Annual Report 2023-24 | 271
Integrated Report
Statutory Reports
Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
CONSOLIDATED CASH FLOW STATEMENT
for the year ended March 31, 2024 (Contd.)
` in ‘000s
Year ended
31.03.2024
Year ended
31.03.2023
Cash and cash equivalents at beginning of the year
1,364,564,928
1,831,259,832
Add: Addition of ICICI Lombard General Insurance Company
Limited and I-Process Services (India) Private Limited as a
subsidiary in consolidation during the year
7,710,668
-
Cash and cash equivalents at end of the year
1,627,689,026
1,364,564,928
1. Cash and cash equivalents include cash in hand, foreign currency notes, 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
Tushar Kurani
Partner
Membership no.: 118580
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Ajay Kumar Gupta
Executive Director
DIN-07580795
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
Vinit Jain
Partner
Membership no.: 145911
Mumbai
April 27, 2024
272 | Annual Report 2023-24
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 1 - CAPITAL
Authorised capital
12,500,000,000 equity shares of ` 2 each (March 31, 2023: 12,500,000,000
equity shares of ` 2 each)
25,000,000
25,000,000
Equity share capital
Issued, subscribed and paid-up capital
6,982,815,731 equity shares of ` 2 each (March 31, 2023: 6,948,771,375
equity shares)
13,965,631
13,897,543
Add: 39,519,912 equity shares of ` 2 each (March 31, 2023: 34,044,356
equity shares) issued during the year
79,040
68,088
14,044,671
13,965,631
Add: Forfeited equity shares1
2,119
2,119
TOTAL CAPITAL
14,046,790
13,967,750
1. On account of forfeiture of 266,089 equity shares of ` 10 each.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 1A - EMPLOYEES STOCK OPTIONS OUTSTANDING
Opening balance
7,608,859
2,664,141
Additions during the year1
7,028,323
5,172,383
Deductions during the year2
(584,002)
(227,665)
Closing balance
14,053,180
7,608,859
1. Represents cost of employee stock options/units 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.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 2 - RESERVES AND SURPLUS
I.
Statutory reserve
Opening balance
435,778,519
356,036,519
Additions during the year
102,221,000
79,742,000
Deductions during the year
-
-
Closing balance
537,999,519
435,778,519
II.
Special Reserve
Opening balance
160,232,000
133,978,000
Additions during the year
31,353,000
26,254,000
Deductions during the year
-
-
Closing balance
191,585,000
160,232,000
III. Securities premium
Opening balance
507,229,514
497,645,058
Additions during the year1
12,206,924
9,584,456
Deductions during the year
-
-
SCHEDULES
forming part of the Consolidated Balance Sheet
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
Annual Report 2023-24 | 273
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
` in ‘000s
At
31.03.2024
At
31.03.2023
Closing balance
519,436,438
507,229,514
IV. Investment reserve account
Opening balance
-
-
Additions during the year
-
-
Deductions during the year
-
-
Closing balance
-
-
V. Investment fluctuation reserve2
Opening balance
21,758,809
20,714,999
Additions during the year
9,927,900
1,043,810
Deductions during the year
-
-
Closing balance
31,686,709
21,758,809
VI. Capital reserve
Opening balance
150,662,553
149,784,353
Additions during the year3
690,995
878,200
Deductions during the year
-
-
Closing balance4
151,353,548
150,662,553
VII. Capital redemption reserve
Opening balance
3,500,000
3,500,000
Additions during the year
-
-
Deductions during the year
-
-
Closing balance
3,500,000
3,500,000
VIII. Foreign currency translation reserve
Opening balance
15,594,494
12,431,431
Additions during the year5
4,234,435
3,163,063
Deductions during the year
-
-
Closing balance
19,828,929
15,594,494
IX. Revaluation reserve
Opening balance
30,918,416
32,284,975
Additions during the year6
1,174,473
839,517
Deductions during the year7
(980,148)
(2,206,076)
Closing balance
31,112,741
30,918,416
X. Revenue and other reserves
Opening balance
141,340,210
88,597,221
Additions during the year
7,381,788
52,798,858
Deductions during the year
(144,306)
(55,869)
Closing balance8,9,10
148,577,692
141,340,210
XI. Balance in profit and loss account
898,257,800
656,386,769
TOTAL RESERVES AND SURPLUS
2,533,338,376
2,123,401,284
1. Includes ` 12,206.2 million (March 31, 2023 : ` 9,576.3 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.
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
274 | Annual Report 2023-24
3. Represents appropriations made by the Bank for profit on sale of investments in held-to-maturity category and profit on sale of land
and buildings, net of taxes and transfer to statutory reserve.
4. Includes capital reserve on initial/subsequent investment on subsidiaries and associates amounting to ` 437.6 million (March 31,
2023: ` 79.1 million).
5. Includes transfer of accumulated translation loss of ` 3,396.6 million related to closure of Bank’s Offshore Banking Unit, SEEPZ
Mumbai, to profit and loss account in terms of Accounting Standard 11 - The Effects of Changes in Foreign Exchange Rates.
6. Represents gain on revaluation of premises carried out by the Bank and ICICI Home Finance Company Limited.
7. 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.
8. Includes ` 6,841.3 million towards fair value change account of insurance subsidiaries (March 31, 2023: ` 1,435.9 million).
9. Includes unrealised profit/(loss), net of tax, of ` 20.1 million (March 31, 2023: ` 161.5 million) pertaining to the investments in the
available-for-sale category of ICICI Bank UK PLC.
10. Includes unrealised profit/(loss) pertaining to the investments of venture capital funds.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 2A - MINORITY INTEREST
Opening minority interest
66,867,526
59,808,935
Subsequent increase/(decrease) during the year1
72,016,636
7,058,591
CLOSING MINORITY INTEREST
138,884,162
66,867,526
1. At March 31, 2024, includes minority interest relating to ICICI Lombard General Insurance Company Limited amounting to ` 63,102.1
million on becoming a subsidiary.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 3 - DEPOSITS
A.
I.
Demand deposits
i)
From banks
47,613,641
49,978,962
ii)
From others
1,940,571,390
1,608,349,299
II.
Savings bank deposits
4,060,887,215
3,848,298,564
III. Term deposits
i)
From banks
208,627,693
113,475,314
ii)
From others
8,178,099,585
6,488,219,382
TOTAL DEPOSITS
14,435,799,524
12,108,321,521
B.
I.
Deposits of branches in India
13,954,785,283
11,638,079,242
II.
Deposits of branches/ subsidiaries outside India
481,014,241
470,242,279
TOTAL DEPOSITS
14,435,799,524
12,108,321,521
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
Annual Report 2023-24 | 275
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 4 - BORROWINGS
I.
Borrowings in India
i)
Reserve Bank of India1
26,186,900
18,899,200
ii)
Other banks
104,714,012
71,911,178
iii)
Financial institutions2
661,840,505
608,942,331
iv)
Borrowings in the form of
a)
Deposits
38,106,055
36,624,470
b)
Commercial paper
172,960,808
98,022,849
c)
Bonds and debentures (excluding subordinated debt)
525,303,878
506,782,072
v)
Capital instruments
a)
Innovative Perpetual Debt Instruments (IPDI) (qualifying as
additional Tier 1 capital)
-
51,400,000
b)
Unsecured redeemable debentures/bonds (subordinated debt
included in Tier 2 capital)
48,594,148
53,206,653
TOTAL BORROWINGS IN INDIA
1,577,706,306
1,445,788,753
II. Borrowings outside India
i)
Capital instruments
Unsecured redeemable debentures/bonds (subordinated debt
included in Tier 2 capital)
4,135,575
5,962,274
ii)
Bonds and notes
133,372,570
133,419,412
iii)
Other borrowings
359,065,557
305,447,634
TOTAL BORROWINGS OUTSIDE INDIA
496,573,702
444,829,320
TOTAL BORROWINGS
2,074,280,008
1,890,618,073
1. Represents borrowings made by the Group 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 ` 266,868.8 million (March 31, 2023: ` 239,969.1 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.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
I.
Bills payable
128,193,100
136,037,076
II.
Inter-office adjustments (net)
420,905
3,228,016
III. Interest accrued
38,985,508
33,390,137
IV. Sundry creditors
639,120,659
242,830,603
V.
General provision for standard assets
61,602,061
49,946,771
VI. Unrealised loss on foreign exchange and derivative contracts
176,519,175
183,764,747
VII. Others (including provisions)1
572,203,527
336,248,942
TOTAL OTHER LIABILITIES AND PROVISIONS
1,617,044,935
985,446,292
1. Includes contingency provision of the Bank amounting to ` 131,000.0 million (March 31, 2023: ` 131,000.0 million) and specific
provision for standard loans amounting to ` 9,795.3 million (March 31, 2023: ` 14,946.9 million) of the Bank.
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
276 | Annual Report 2023-24
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA
I.
Cash in hand (including foreign currency notes)
89,558,463
86,812,982
II.
Balances with Reserve Bank of India
809,871,768
599,676,431
(a) in current account
625,031,768
480,256,431
(b) in other accounts1
184,840,000
119,420,000
TOTAL CASH AND BALANCES WITH RESERVE BANK OF INDIA
899,430,231
686,489,413
1. Represents lending made by the Group under Liquidity Adjustment Facility (LAF) and Standing Deposit Facility (SDF).
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND
SHORT NOTICE
I.
In India
i)
Balances with banks
a)
In current accounts
3,553,758
3,103,280
b)
In other deposit accounts
125,802,157
107,287,660
ii)
Money at call and short notice
a)
With banks
4,170,250
8,217,000
b)
With other institutions1
180,191,880
59,652,392
TOTAL
313,718,045
178,260,332
II. Outside India
i)
In current accounts
218,885,291
310,635,743
ii)
In other deposit accounts
80,151,629
26,782,094
iii)
Money at call and short notice
115,503,830
162,397,346
TOTAL
414,540,750
499,815,183
TOTAL BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
728,258,795
678,075,515
1. Includes lending made by the Group under reverse repo.
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
Annual Report 2023-24 | 277
Integrated Report
Statutory Reports
Financial Statements
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 8 - INVESTMENTS
I.
Investments in India [net of provisions]
i)
Government securities
5,055,928,340
3,960,623,208
ii)
Other approved securities
-
-
iii)
Shares (includes equity and preference shares)
219,751,396
127,225,123
iv)
Debentures and bonds (including commercial paper and certificate
of deposits)
967,627,791
526,539,870
v)
Assets held to cover linked liabilities of life insurance business1
1,648,424,014
1,440,580,565
vi)
Investment in associates2
15,102,339
64,140,775
vii) Others (mutual fund units, pass through certificates, security
receipts and other related investments)
222,672,130
128,457,645
TOTAL INVESTMENTS IN INDIA
8,129,506,010
6,247,567,186
II.
Investments outside India [net of provisions]
i)
Government securities
79,489,098
89,972,472
ii)
Others (equity shares, bonds and certificate of deposits)
62,629,942
57,980,013
TOTAL INVESTMENTS OUTSIDE INDIA
142,119,040
147,952,485
TOTAL INVESTMENTS
8,271,625,050
6,395,519,671
A.
Investments in India
Gross value of investments1
8,133,543,306
6,275,011,504
Less: Aggregate of provision/depreciation/(appreciation)
4,037,296
27,444,318
Net investments
8,129,506,010
6,247,567,186
B.
Investments outside India
Gross value of investments
146,627,653
153,368,477
Less: Aggregate of provision/depreciation/(appreciation)
4,508,613
5,415,992
Net investments
142,119,040
147,952,485
TOTAL INVESTMENTS
8,271,625,050
6,395,519,671
1. Includes net appreciation amounting to ` 384,547.0 million (March 31, 2023: ` 169,588.6 million) on investments held to cover linked
liabilities of life insurance business.
2. Includes goodwill on consolidation of associates amounting to ` 163.1 million (March 31, 2023: ` 221.9 million).
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
278 | Annual Report 2023-24
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 9 - ADVANCES [net of provisions]
A.
i)
Bills purchased and discounted1
500,789,314
497,557,667
ii)
Cash credits, overdrafts and loans repayable on demand
3,577,416,833
2,866,747,206
iii) Term loans
8,529,555,882
7,474,358,274
TOTAL ADVANCES
12,607,762,029
10,838,663,147
B.
i)
Secured by tangible assets (includes advances against book debts)
9,000,168,618
7,713,019,424
ii)
Covered by bank/government guarantees
91,804,264
159,202,710
iii) Unsecured
3,515,789,147
2,966,441,013
TOTAL ADVANCES
12,607,762,029
10,838,663,147
C.
I.
Advances in India
i)
Priority sector
3,739,060,521
2,807,812,582
ii)
Public sector
510,801,139
516,152,443
iii) Banks
16,359,843
7,698,171
iv) Others
7,598,518,682
6,769,499,593
TOTAL ADVANCES IN INDIA
11,864,740,185
10,101,162,789
II. Advances outside India
i)
Due from banks
14,422,000
8,076,480
ii)
Due from others
a)
Bills purchased and discounted
116,325,237
152,553,948
b)
Syndicated and term loans
257,939,039
245,267,859
c)
Others
354,335,568
331,602,071
TOTAL ADVANCES OUTSIDE INDIA
743,021,844
737,500,358
TOTAL ADVANCES
12,607,762,029
10,838,663,147
1. Net of bills re-discounted amounting to ` 5,000.0 million (March 31, 2023: ` 10,000.0 million).
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
Annual Report 2023-24 | 279
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 10 - FIXED ASSETS
I.
Premises
Gross block
At cost at March 31 of preceding year
94,340,437
94,345,827
Additions during the year1,4
9,806,147
2,793,216
Deductions during the year
(1,171,073)
(2,798,606)
Closing balance
102,975,511
94,340,437
Depreciation
At March 31 of preceding year
25,545,325
23,514,011
Charge during the year2,4
3,196,062
2,486,973
Deductions during the year
(641,864)
(455,659)
Total depreciation
28,099,523
25,545,325
Net block3
74,875,988
68,795,112
II.
Other fixed assets (including furniture and fixtures)
Gross block
At cost at March 31 of preceding year
111,002,632
98,784,940
Additions during the year5,6
42,594,957
18,437,437
Deductions during the year
(4,553,076)
(6,219,745)
Closing balance
149,044,513
111,002,632
Depreciation
At March 31 of preceding year
73,174,464
66,817,309
Charge during the year5,6
25,873,227
12,459,081
Deductions during the year
(4,663,727)
(6,101,926)
Total depreciation
94,383,964
73,174,464
Net block
54,660,549
37,828,168
III. Lease assets
Gross block
At cost at March 31 of preceding year
17,902,406
17,890,746
Additions during the year
530
11,660
Deductions during the year
(2,650)
-
Closing balance7
17,900,286
17,902,406
Depreciation
At March 31 of preceding year
14,835,650
14,636,086
Charge during the year
199,375
199,564
Deductions during the year
(965)
-
Total depreciation, accumulated lease adjustment and provisions
15,034,060
14,835,650
Net block
2,866,226
3,066,756
TOTAL FIXED ASSETS
132,402,763
109,690,036
1. Includes net revaluation gain amounting to ` 1,194.7 (March 31, 2023: ` 811.7 million) on account of revaluation carried out by the
Bank and its housing finance subsidiary.
2. Including depreciation charge on account of revaluation of ` 812.5 million for the year ended March 31, 2024 (year ended March 31,
2023: ` 755.2 million).
3. Includes assets amounting to ` 8.8 million of the Bank (March 31, 2023: ` 428.8 million) which are held for sale.
4. Includes premises cost amounting to ` 3,723.1 million and accumulated depreciation amounting to ` 305.5 million pertaining to ICICI
Lombard General Insurance Company Limited on becoming a subsidiary w.e.f. February 29, 2024.
5. Includes other fixed assets cost amounting to ` 12,054.0 million and accumulated depreciation amounting to ` 9,567.3 million
pertaining to ICICI Lombard General Insurance Company Limited on becoming a subsidiary w.e.f. February 29, 2024.
6. Includes other fixed assets cost amounting to ` 47.5 million and accumulated depreciation amounting to ` 43.8 million pertaining to
I-Process Services (India) Private Limited on becoming a subsidiary w.e.f. March 20, 2024.
7. Includes assets taken on lease by the Bank amounting to ` 1,185.7 million (March 31, 2023: ` 1,187.8 million).
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
280 | Annual Report 2023-24
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 11 - OTHER ASSETS
I.
Inter-office adjustments (net)
-
-
II.
Interest accrued
208,551,090
151,100,647
III. Tax paid in advance/tax deducted at source (net)
12,595,878
20,372,701
IV. Stationery and stamps
251,899
379,124
V.
Non-banking assets acquired in satisfaction of claims1,2
-
-
VI. Advance for capital assets
8,831,572
9,009,963
VII. Deposits
72,688,283
54,892,587
VIII. Deferred tax asset (net) (refer note 18.9)
63,115,807
76,194,441
IX. Deposits in Rural Infrastructure and Development Fund
200,918,559
216,216,187
X.
Unrealised gain on foreign exchange and derivative contracts
169,989,164
178,022,993
XI. Others
239,467,536
169,265,227
TOTAL OTHER ASSETS
976,409,788
875,453,870
1. Assets amounting to ` 2.6 million were transferred from banking assets to non banking asset by the Bank during the year ended
March 31, 2024 (year ended March 31, 2023: Nil). Assets amounting to ` 827.7 million were sold by the Bank during the year ended
March 31, 2024 (year ended March 31, 2023: Nil).
2. Net of provision held by the Bank amounting to ` 28,189.9 million (March 31, 2023: ` 29,011.8 million).
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 12 - CONTINGENT LIABILITIES
I.
Claims against the Group not acknowledged as debts
110,275,158
88,006,837
II.
Liability for partly paid investments
3,573,880
4,790,087
III. Liability on account of outstanding forward exchange contracts1
15,786,739,940
15,492,543,076
IV. Guarantees given on behalf of constituents
a)
In India
1,365,548,848
1,102,115,003
b)
Outside India
121,463,607
134,004,861
V.
Acceptances, endorsements and other obligations
514,009,699
435,202,811
VI. Currency swaps1
541,254,033
570,626,929
VII. Interest rate swaps, currency options and interest rate futures1
39,017,579,690
32,435,271,591
VIII. Other items for which the Group is contingently liable
117,718,482
96,949,837
TOTAL CONTINGENT LIABILITIES
57,578,163,337
50,359,511,032
1. Represents notional amount.
SCHEDULES
forming part of the Consolidated Balance Sheet (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
Annual Report 2023-24 | 281
Integrated Report
Statutory Reports
Financial Statements
` in ‘000s
Year ended
31.03.2024
Year ended
31.03.2023
SCHEDULE 13 - INTEREST EARNED
I.
Interest/discount on advances/bills
1,165,897,763
879,292,351
II.
Income on investments (including dividend)
381,070,710
279,050,297
III.
Interest on balances with Reserve Bank of India and other inter-bank funds
26,498,839
23,054,570
IV. Others1,2
21,691,940
29,270,880
TOTAL INTEREST EARNED
1,595,159,252
1,210,668,098
1. Includes interest on income tax refunds amounting to ` 2,828.2 million (March 31, 2023: ` 1,203.2 million).
2. Includes interest and amortisation of premium on non-trading interest rate swaps and foreign currency swaps.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 14 - OTHER INCOME
I.
Commission, exchange and brokerage
235,718,656
196,484,672
II.
Profit/(loss) on sale of investments (net)
36,689,228
12,730,117
III. Profit/(loss) on revaluation of investments (net)
1,182,467
(1,317,590)
IV. Profit/(loss) on sale of land, buildings and other assets (net)1
144,093
542,579
V.
Profit/(loss) on exchange/derivative transactions (net)
30,860,575
30,509,008
VI. Premium and other operating income from insurance business
458,528,108
411,367,848
VII. Miscellaneous income (including lease income)
2,094,893
803,278
TOTAL OTHER INCOME
765,218,020
651,119,912
1. Includes profit/(loss) on sale of assets given on lease.
` in ‘000s
At
31.03.2024
At
31.03.2023
SCHEDULE 15 - INTEREST EXPENDED
I.
Interest on deposits
587,844,555
394,765,407
II.
Interest on Reserve Bank of India/inter-bank borrowings
32,114,853
13,380,975
III. Others (including interest on borrowings of erstwhile ICICI Limited)
121,122,219
97,287,497
TOTAL INTEREST EXPENDED
741,081,627
505,433,879
SCHEDULES
forming part of the Consolidated Profit and Loss Account
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
282 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Profit and Loss Account (Contd.)
` in ‘000s
Year ended
31.03.2024
Year ended
31.03.2023
SCHEDULE 16 - OPERATING EXPENSES
I.
Payments to and provisions for employees
191,719,774
152,341,687
II.
Rent, taxes and lighting1
17,054,394
15,846,567
III. Printing and stationery
3,610,245
2,713,187
IV. Advertisement and publicity
28,292,745
32,807,911
V.
Depreciation on property
19,152,745
14,946,054
VI. Depreciation (including lease equalisation) on leased assets
199,361
199,538
VII. Directors' fees, allowances and expenses
146,009
137,405
VIII. Auditors' fees and expenses
264,719
248,666
IX. Law charges
1,494,968
1,771,894
X. Postages, courier, telephones, etc.
8,875,883
7,475,175
XI. Repairs and maintenance
36,171,827
34,644,161
XII. Insurance
16,843,829
14,788,575
XIII. Direct marketing agency expenses
37,986,800
32,599,179
XIV. Claims and benefits paid pertaining to insurance business
78,282,341
53,426,955
XV. Other expenses pertaining to insurance business2
424,318,817
363,124,210
XVI. Other expenditure3,4
113,413,465
97,319,068
TOTAL OPERATING EXPENSES
977,827,922
824,390,232
1. Includes lease expense amounting to ` 13,877.7 million (March 31, 2023: ` 12,512.8 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 ` 16,428.5 million (March 31,
2023: ` 15,035.2 million).
4. Includes expenses on reward program by the Bank amounting to ` 18,414.8 million (March 31, 2023: ` 12,764.2 million).
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
Annual Report 2023-24 | 283
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
SCHEDULE 17
SIGNIFICANT ACCOUNTING POLICIES
Overview
ICICI Bank Limited, together with its subsidiaries 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 and associates.
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 and Companies (Accounting Standard) Rule 2021, 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 are different from those followed by the Bank, the
same have been disclosed in the respective accounting policy. Further, ICICI Lombard General Insurance Company Limited
ceased to be an associate and became a subsidiary of the Bank w.e.f. February 29, 2024. Accordingly, ICICI Lombard
General Insurance Company Limited has been accounted for the equity method prescribed by AS-23 on ‘Accounting for
Investments in Associates in Consolidated Financial Statements’ till February 29, 2024 and has been consolidated on a
line-by-line basis as prescribed by AS-21 on ‘Consolidated Financial Statements’ from March 1, 2024 till the reporting
date.
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.
284 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
The consolidated financial statements include the results of the following entities in addition to the Bank.
Sr.
no.
Name of the entity
Country of
incorporation
Nature of
relationship
Nature of business
Ownership
interest
1.
ICICI Bank UK PLC
United Kingdom Subsidiary
Banking
100.00%
2.
ICICI Bank Canada
Canada
Subsidiary
Banking
100.00%
3.
ICICI Securities Limited
India
Subsidiary
Securities broking and
merchant banking
74.73%
4.
ICICI Securities Holdings Inc.1
USA
Subsidiary
Holding company
100.00%
5.
ICICI Securities Inc.1
USA
Subsidiary
Securities broking
100.00%
6.
ICICI Securities Primary Dealership
Limited
India
Subsidiary
Securities investment,
trading and underwriting
100.00%
7.
ICICI Venture Funds Management
Company Limited
India
Subsidiary
Private equity/
venture capital fund
management
100.00%
8.
ICICI Home Finance Company Limited
India
Subsidiary
Housing finance
100.00%
9.
ICICI Trusteeship Services Limited
India
Subsidiary
Trusteeship services
100.00%
10.
ICICI Investment Management
Company Limited
India
Subsidiary
Asset management and
Investment advisory
100.00%
11.
ICICI International Limited
Mauritius
Subsidiary
Asset management
100.00%
12.
ICICI Prudential Pension Funds
Management Company Limited2
India
Subsidiary
Pension fund
management and Points
of Presence
100.00%
13.
ICICI Prudential Life Insurance
Company Limited
India
Subsidiary
Life insurance
51.20%
14.
ICICI Lombard General Insurance
Company Limited3
India
Subsidiary
General insurance
51.27%
15.
ICICI Prudential Asset Management
Company Limited
India
Subsidiary
Asset management
51.00%
16.
ICICI Prudential Trust Limited
India
Subsidiary
Trusteeship services
50.80%
17.
I-Process Services (India) Private
Limited4
India
Subsidiary
Services related to back
end operations
100.00%
18.
ICICI Strategic Investments Fund
India
Consolidated
as per AS 21
Venture capital fund
100.00%
19.
NIIT Institute of Finance Banking and
Insurance Training Limited5
India
Associate
Education and training
in banking, finance and
insurance
18.79%
20.
ICICI Merchant Services Private
Limited5
India
Associate
Merchant acquiring and
servicing
19.01%
21.
India Infradebt Limited5
India
Associate
Infrastructure re-finance
42.33%
22.
India Advantage Fund-III5
India
Associate
Venture capital fund
24.10%
23.
India Advantage Fund-IV5
India
Associate
Venture capital fund
47.14%
24.
Arteria Technologies Private Limited5
India
Associate
Software company
19.98%
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. ICICI Lombard General Insurance Company Limited ceased to be an associate and became a subsidiary of the Bank w.e.f. February 29, 2024.
4. I-Process Services (India) Private Limited ceased to be an associate and became a subsidiary of the Bank w.e.f. March 20, 2024 and
became a wholly-owned subsidiary of the Bank w.e.f. March 22, 2024.
5. 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’.
Annual Report 2023-24 | 285
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
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)
Arranger fee is accounted for as income when a significant portion of the arrangement is completed and right
to receive is established.
g)
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.
i)
The annual/renewal fee on credit cards, debit cards and prepaid cards are amortised on a straight-line basis
over one year.
j)
All other fees are accounted for as and when they become due where the Group is reasonably certain of
ultimate collection.
k)
Fees paid/received for priority sector lending certificates (PSLC) is amortised on straight-line basis over the
period of the certificate.
286 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
l)
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.
m) 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 general insurance business, premium including reinsurance accepted (net of goods & services tax)
other than for long-term (with term more than one year) motor insurance policies for new cars and new two
wheelers sold on or after September 1, 2018 is recorded on receipt of complete information, for the policy
period at the commencement of risk. For crop insurance, the premium is accounted based on management
estimates that are progressively actualised on receipt of information. For installment cases, premium is recorded
on installment due dates. Reinstatement premium is recorded as and when such premiums are recovered.
Premium earned including reinstatement premium and re-insurance accepted is recognised as income over the
period of risk or the contract period based on 1/365 method, whichever is appropriate on a gross basis other
than instalment premiums received for group health policies, wherein the instalment premiums are recognised
over the balance policy period. Any subsequent revisions to premium as and when they occur are recognised
over the remaining period of risk or contract period, as applicable.
In case of long-term motor insurance policies for new cars and new two wheelers sold on or after September 1,
2018, premium received (net of goods & services tax) for third party liability coverage is recognised equally over
the policy period at the commencement of risk on 1/n basis where ‘n’ denotes the term of the policy in years and
premium received for own damage coverage is recognised in accordance with movement of Insured Declared
Value (IDV) over the period of risk, on receipt of complete information. Reinstatement premium is recorded as
and when such premiums are recovered. Premium allocated for the year is recognised as income earned based
on 1/365 method, on a gross basis. Reinstatement premium is allocated on the same basis as the original
premium over the balance term of the policy. Any subsequent revisions to premium as and when they occur
are recognised on the same basis as the original premium over the balance term of the policy. Adjustments
to premium income arising on cancellation of policies are recognised in the period in which the policies are
cancelled. Adjustments to premium income for corrections to area covered under crop insurance are recognised
in the period in which the information is confirmed by the concerned government/nodal agency. Commission on
reinsurance ceded is recognised as income in the period of ceding the risk. Profit commission under reinsurance
treaties, wherever applicable, is recognised as income in the year of final determination of profits as confirmed
by reinsurers and combined with commission on reinsurance ceded. Sliding scale commission under reinsurance
treaties, wherever applicable, is determined at every balance sheet date as per terms of the respective treaties.
Any changes in the previously accrued commission is recognised immediately and any additional accrual is
recognised on confirmation from reinsurers. Such commission is combined with commission on reinsurance
ceded.
o)
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.
p)
In case of general insurance business, insurance premium on ceding of the risk other than for long-term motor
insurance policies for new cars and new two wheelers sold on or after September 1, 2018 is recognised
simultaneously along with the insurance premium in accordance with reinsurance arrangements with the
Annual Report 2023-24 | 287
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
reinsurers. In case of long-term motor insurance policies for new cars and new two wheelers sold on or after
September 1, 2018, reinsurance premium is recognised on the insurance premium allocated for the year
simultaneously along with the recognition of the insurance premium in accordance with the reinsurance
arrangements with the reinsurers. Any subsequent revision to premium ceded is recognised in the period of
such revision. Adjustment to reinsurance premium arising on cancellation of policies is recognised in the period
in which the policies are cancelled. Adjustments to reinsurance premium for corrections to area covered under
crop insurance are recognised simultaneously along with related premium income.
q)
In the case of general insurance business, premium deficiency is recognised when the sum of expected claim
costs and related expenses and maintenance costs exceed the reserve for unexpired risks and is computed at
a segmental revenue account level. The premium deficiency is calculated and duly certified by the Appointed
Actuary.
3.
Stock based compensation
The following entities within the group have granted stock options/units to their employees:
•
ICICI Bank Limited
•
ICICI Prudential Life Insurance Company Limited
•
ICICI Lombard General Insurance Company Limited
•
ICICI Securities Limited
The Employees Stock Option Scheme 2000 (Option 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.
The Employees Stock Unit Scheme - 2022 (Unit Scheme) provides for grant of units at face value to the eligible
employees of the Bank and its subsidiaries. The units granted vest in a graded manner and as per vesting criteria
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/units granted after March 31, 2021 is
recognised based on fair value method. The cost of stock options/units 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/units on the grant
date and the inputs used in the valuation model include assumptions such as the expected life of the share option/
units, volatility, risk free rate and dividend yield.
The cost of stock options/units is recognised in the profit and loss account over the vesting period.
ICICI Prudential Life Insurance Company Limited, ICICI Lombard General Insurance Company Limited and ICICI
Securities Limited have also formulated similar stock options/units 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, ICICI Lombard General 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/units
granted to employees by ICICI Bank using the fair value method as followed by the Bank.
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forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
4. Income taxes
Income tax expense is the aggregate amount of current tax and deferred tax expense incurred by the Group. The
current tax expense and deferred tax expense is determined in accordance with the provisions of the Income Tax Act,
1961 and as per Accounting Standard 22 - Accounting for Taxes on Income respectively. Deferred tax adjustments
comprise changes in the deferred tax assets or liabilities during the year 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 general insurance business, claims incurred comprise claims paid, estimated liability for outstanding
claims made following a loss occurrence reported and estimated liability for claims incurred but not reported (IBNR)
and claims incurred but not enough reported (IBNER). Further, claims incurred also include specific claim settlement
costs such as survey/legal fees and other directly attributable costs. Claims (net of amounts receivable from re-
insurers/co-insurers) are recognised on the date of intimation based on internal management estimates or on
estimates from surveyors/insured in the respective revenue account. Estimated liability for outstanding claims at
the balance sheet date is recorded net of claims recoverable from/payable to co-insurers/re-insurers and salvage
to the extent there is certainty of realisation and includes provision for solatium fund. Salvaged stock is recognised
at estimated net realisable value based on independent valuer’s report. Estimated liability for outstanding claim
is determined by the management on the basis of ultimate amounts likely to be paid on each claim based on the
past experience and in cases where claim payment period exceeds four years based on actuarial valuation. These
estimates are progressively revalidated on availability of further information. Claims IBNR represent that amount
of claims that may have been incurred during the accounting period but have not been reported or claimed. The
claims IBNR provision also includes provision, if any, required for claims that have been incurred but are not enough
reported (IBNER). The provision for claims IBNR/claims IBNER is based on an actuarial estimate duly certified by the
Appointed Actuary of the entity. The actuarial estimate is derived in accordance with relevant IRDAI regulations and
Guidance Note GN 21 issued by the Institute of Actuaries of India.
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
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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.
Reserve for unexpired risk
Reserve for unexpired risk is recognised net of re-insurance ceded and represents premium written that is attributable
to and is to be allocated to succeeding accounting periods. For fire, marine cargo and miscellaneous business it is
calculated on a daily pro-rata basis, except in the case of marine hull business which is computed at 100.00% of net
premium written on all unexpired policies at balance sheet date.
8.
Actuarial method and valuation
In the case of life insurance business, the actuarial liability on both participating and non-participating policies
is calculated using the gross premium method, using assumptions for interest, mortality, morbidity, expense and
inflation, and in the case of participating policies, future bonuses together with allowance for taxation and allocation
of profits to shareholders. These assumptions are determined as prudent estimates at the date of valuation with
allowances for adverse deviations.
The liability for the unexpired portion of the risk for the non-unit liabilities of linked business and attached riders is
the higher of liability calculated using discounted cash flows and unearned premium reserves.
The unit liability in respect of linked business has been taken as the value of the units standing to the credit of
policyholders, using the Net Asset Value (NAV) prevailing at the valuation date.
An unexpired risk reserve and a reserve in respect of claims incurred but not reported are created, for one year
renewable group term insurance.
The interest rates used for valuing the liabilities are in the range of 5.04% to 6.56% per annum (previous year –
4.99% to 6.58% 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 4.91% per annum
(previous year – 4.90%).
9.
Acquisition costs for insurance business
Acquisition costs are those costs that vary with and are primarily related to the acquisition of insurance contracts
and are expensed in the period in which they are incurred except for commission on long term motor insurance
policies for new cars and new two wheelers sold on or after September 1, 2018. In case of long-term motor insurance
policies for new cars and new two wheelers sold on or after September 1, 2018 commission is expensed at the
applicable rates on the premium allocated for the year.
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forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
10. Employee benefits
Gratuity
The Group pays gratuity, a defined benefit plan, to employees who retire or resign after a minimum prescribed
period of continuous service and in case of employees at overseas locations as per the rules in force in the respective
countries. The Group makes contribution to 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 maximum 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 Home Finance 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
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.
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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.
11. Provisions, contingent liabilities and contingent assets
The Group estimates the probability of any loss that might be incurred on outcome of contingencies on the basis
of information available upto the date on which the consolidated financial statements are prepared. A provision is
recognised when an enterprise has a present obligation as a result of a past event and it is probable that an outflow
of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions
are determined based on management estimates of amounts required to settle the obligation at the balance sheet
date, supplemented by experience of similar transactions. These are reviewed at each balance sheet date and
adjusted to reflect the current management estimates. In cases where the available information indicates that the
loss on the contingency is reasonably possible but the amount of loss cannot be reasonably estimated, a disclosure
to this effect is made in the consolidated financial statements. In case of remote possibility, neither provision nor
disclosure is made in the consolidated financial statements. The Group does not account for or disclose contingent
assets, if any.
The Bank estimates the probability of redemption of customer loyalty reward points using an actuarial method by
employing an independent actuary and accordingly makes provision for these reward points. Actuarial valuation is
determined based on certain assumptions regarding mortality rate, discount rate, cancellation rate and redemption
rate.
12. Cash and cash equivalents
Cash and cash equivalents include cash in hand, foreign currency notes, balances with RBI, balances with other
banks and money at call and short notice.
13. Investments
i)
Investments of the Bank are accounted for in accordance with the extant RBI guidelines on classification,
valuation and operation of investment portfolio by Banks.
a.
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.
b.
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 classification, valuation and operation
of investment portfolio by Banks. 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.
c.
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.
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d.
Costs including brokerage and commission pertaining to trading book 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.
e.
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.
f.
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.
g.
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.
h.
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 and
for unquoted corporate bonds, security level valuation (SLV) published by FIMMDA. 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.
i.
Treasury bills, commercial papers and certificate of deposits being discounted instruments, are valued at
carrying cost.
j.
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.
k.
Investments in units of Venture Capital Funds (VCFs)/Alternative Investment Funds (AIFs) are categorised
under HTM category for an initial period of three years and valued at cost. The units of VCFs/AIFs
categorised under AFS are valued at the net asset value (NAV) declared by the VCFs/AIFs respectively. If
the latest NAV is not available continuously for more than 18 months, the units of VCFs/AIFs are valued at
` 1, as per RBI guidelines.
l.
The units of Infrastructure Investment Trust (InvIT) are valued as per the quoted price available on the
exchange.
m.
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.
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n.
Depreciation/provision on non-performing investments is made as per internal provisioning norms, subject
to minimum provisioning requirements of RBI.
o.
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.
p.
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.
q.
Market repurchase, reverse repurchase and transactions with RBI under Liquidity Adjustment Facility (LAF)/
Marginal Standing Facility (MSF) are accounted for as borrowing and lending transactions in accordance
with the extant RBI guidelines.
ii)
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.
iii)
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.
iv)
The Bank’s housing finance subsidiary classifies its investments as current investments and long-term
investments. Investments that are readily realisable and intended to be held for not more than a year are
classified as current investments, which are carried at the lower of cost and net realisable value. All other
investments are classified as long-term investments, which are carried at 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.
vi)
In the case of life and general insurance businesses, investments are made in accordance with the Insurance
Act, 1938 (amended by the Insurance Laws (Amendment) Act, 2015), the IRDA (Investment) Regulations, 2016
and various other circulars/notifications issued by the IRDAI in this context from time to time.
In the case of life insurance business, valuation of investments (other than linked business) is done on the
following basis:
a.
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.
b.
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).
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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.
In the case of general insurance business, valuation of investments is done on the following basis:
a.
All debt securities including government securities, money market instruments, non-convertible and
redeemable preference shares and excluding Additional Tier-1 perpetual bonds are considered as ‘held to
maturity’ and accordingly stated at amortised cost determined after amortisation of premium or accretion
of discount over the holding/maturity period in accordance with income recognition policy.
Additional Tier-1 perpetual bonds
Additional Tier-1 perpetual bond investments are valued at fair value using market yield rates published
by rating agency registered with the Securities and Exchange Board of India (SEBI).
b.
Listed equities and convertible preference shares at the balance sheet date are stated at fair value, being
the last quoted closing price on the NSE and in case these are not listed on NSE, then based on the last
quoted closing price on the BSE.
c.
Mutual fund investments (other than venture capital fund) are stated at fair value, being the closing net
asset value at balance sheet date.
d.
Investments other than mentioned above are valued at cost.
Unrealised gains/losses arising due to changes in the fair value of listed equity shares, convertible preference
shares and mutual fund investments and Additional Tier-I perpetual bonds are taken to ‘Revenue and
other reserves’ in the balance sheet for general insurance business.
Insurance subsidiaries assess at each balance sheet date whether there is any indication that any
investment may be impaired. If any such indication exists, the carrying value of such investment is reduced
to its recoverable amount and the impairment loss is recognised in the revenue(s)/profit and loss account.
The 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 25.57% of the total investments at March 31, 2024.
14. 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.
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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.
Certain specified guidelines by RBI requires the asset classification to be maintained as ‘Standard’. Therefore,
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
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
296 | Annual Report 2023-24
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forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
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.
ii)
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.
iii)
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.
iv)
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 6.08% of the total loans at March 31, 2024.
15. Transfer and servicing of assets
The Bank transfers commercial and consumer loans through securitisation transactions. The transferred loans are
de-recognised and gains/losses are accounted, 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.
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forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
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.
The Canadian subsidiary has entered into securitisation arrangements in respect of its originated and purchased
mortgages. ICICI Bank Canada either retains substantially all the risk and rewards or retains control over these
mortgages, hence these arrangements do not qualify for de-recognition accounting under their local accounting
standards. It continues to recognise the mortgages securitised as “Loans and Advances” and the amounts received
through securitisation are recognised as “Other borrowings”.
16. Fixed assets (Property, Plant and Equipment)
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.
The Group 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.
17. Foreign exchange and derivative contracts
Derivative transactions comprises of forward contracts, futures, swaps and options. The Group undertakes derivative
transactions for trading and hedging balance sheet assets and liabilities.
298 | Annual Report 2023-24
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forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
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
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. Marked-to-market values of such derivatives are classified as assets
when the fair value is positive or as liabilities when the fair value is negative. Premium for Foreign currency/Indian
rupees option transaction is recognised as income/expense on expiry or early termination of the transaction. Mark to
market gain/loss (adjusted for premium received/paid on options contracts) is recorded in the profit and loss account.
The gain or loss arising on unwinding or termination of the contracts, is accounted for in the Profit and Loss account.
Currency futures contracts are marked to market using daily settlement price on a trading day, which is the closing
price of the respective futures contracts on that day. Pursuant to RBI guidelines, any receivables under derivative
contracts which remain overdue for more than 90 days and mark-to-market gains on other derivative contracts with
the same counter-parties are reversed through the profit and loss account.
18. Impairment of assets
The immovable fixed assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. An asset is treated as impaired when its carrying
amount exceeds its recoverable amount. The impairment is recognised by debiting the profit and loss account and is
measured as the amount by which the carrying amount of the impaired assets exceeds their recoverable value. The
Bank and its housing finance subsidiary follows revaluation model of accounting for its premises and the recoverable
amount of the revalued assets is considered to be close to its revalued amount. Accordingly, separate assessment
for impairment of premises is not required.
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.
Annual Report 2023-24 | 299
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forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
19. 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.
20. Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding 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.
21. 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.
22. Share issue expenses
Share issue expenses are deducted from Securities Premium Account in terms of Section 52 of the Companies Act,
2013.
23. Segment Reporting
The disclosure related to segment information is in accordance with AS-17, Segment Reporting and as per guidelines
issued by RBI.
300 | Annual Report 2023-24
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forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
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
Year ended
March 31, 2024
Year ended
March 31, 2023
Net profit/(loss) attributable to equity shareholders used in computation
of Basic and Diluted EPS
442,563.7
340,366.4
Nominal value per share (`)
2.00
2.00
Basic earnings per share (`)
63.19
48.86
Effect of potential equity shares (`)
(1.23)
(1.02)
Diluted earnings per share (`)1
61.96
47.84
Reconciliation between weighted shares used in computation of basic and diluted earnings per share
Weighted average number of equity shares outstanding used in
computation of Basic EPS
7,003,943,116
6,966,305,957
Add: Effect of potential equity shares
128,245,813
138,684,400
Weighted average number of equity shares outstanding used in
computation of Diluted EPS
7,132,188,929
7,104,990,357
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
Nature of relationship
1.
ICICI Lombard General Insurance Company Limited
Associate1
2.
Arteria Technologies Private Limited
Associate
3.
India Advantage Fund-III
Associate
4.
India Advantage Fund-IV
Associate
5.
India Infradebt Limited
Associate
6.
ICICI Merchant Services Private Limited
Associate
7.
I-Process Services (India) Private Limited
Associate2
8.
NIIT Institute of Finance, Banking and Insurance Training Limited
Associate
9.
Comm Trade Services Limited
Other related entity
10.
ICICI Foundation for Inclusive Growth
Other related entity
11.
Cheryl Advisory Private Limited
Other related entity
1. ICICI Lombard General Insurance Company Limited ceased to be an associate and became a subsidiary of the Bank w.e.f.
February 29, 2024.
2. I-Process Services (India) Private Limited ceased to be an associate and became a subsidiary of the Bank w.e.f. March 20,
2024 and became a wholly-owned subsidiary of the Bank w.e.f. March 22, 2024.
Annual Report 2023-24 | 301
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Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
Key management personnel
Sr. no. Name of the Key management personnel
Relatives of the Key management personnel
1.
Mr. Sandeep Bakhshi
•
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
2.
Mr. Anup Bagchi
(upto April 30, 2023)
•
Ms. Mitul Bagchi
•
Mr. Aditya Bagchi
•
Mr. Shishir Bagchi
•
Mr. Arun Bagchi
3.
Mr. Sandeep Batra
•
Mr. Pranav Batra
•
Ms. Arushi Batra
•
Mr. Vivek Batra
•
Ms. Veena Batra
4.
Mr. Rakesh Jha
(w.e.f. September 2, 2022)
•
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
5.
Ms. Vishakha Mulye
(upto May 31, 2022)
•
Mr. Vivek Mulye
•
Ms. Vriddhi Mulye
•
Mr. Vighnesh Mulye
•
Dr. Gauresh Palekar
•
Ms. Shalaka Gadekar
•
Dr. Nivedita Palekar
6.
Mr. Ajay Kumar Gupta
(w.e.f. March 15, 2024)
•
Dr. Shabnam Gupta
•
Mr. Akhil Gupta
•
Mr. Aneesh Gupta
•
Mr. Ashok Gupta
•
Mr. Vinay Gupta
•
Ms. Aparna Gupta
•
Ms. Madhu Gupta
•
Ms. Rita Agarwal
•
Ms. Shanti Gupta
•
Shyam Lall Gupta HUF
302 | Annual Report 2023-24
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forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
II.
Transactions with related parties
The following table sets forth, for the periods indicated, the significant transactions between the Group and its
related parties.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Interest income
380.2
438.0
Associates/others
379.3
434.8
Key management personnel
0.9
3.2
Income from services rendered
1,589.2
1,422.7
Associates/others
1,588.4
1,419.9
Key management personnel
0.6
0.9
Relatives of key management personnel
0.2
1.9
Gain/(loss) on forex and derivative transactions (net)
61.6
50.8
Associates/others
61.6
50.8
Income from shared services
243.4
326.5
Associates/others
243.4
326.5
Dividend income
2,582.9
2,347.1
Associates/others
2,582.9
2,347.1
Insurance claims received
40.1
163.0
Associates/others
40.1
163.0
Interest expense
218.0
225.7
Associates/others
193.8
205.2
Key management personnel
14.4
15.3
Relatives of key management personnel
9.8
5.2
Expenses for services received
13,043.6
15,702.6
Associates/others
13,043.6
15,702.6
Insurance premium paid
3,288.0
3,544.6
Associates/others
3,288.0
3,544.6
Expenses for shared services and other payments
5.0
0.8
Associates/others
5.0
0.8
Insurance claims, surrenders and annuities paid
44.1
19.0
Associates/others
43.6
18.5
Key management personnel
0.5
0.5
CSR related reimbursement of expenses
5,170.0
4,441.1
Associates/others
5,170.0
4,441.1
Donation given
712.3
564.5
Associates/others
712.3
564.5
Annual Report 2023-24 | 303
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forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Volume of fixed deposits placed
11,834.1
7,076.0
Associates/others
11,718.6
6,916.7
Key management personnel
84.9
133.5
Relatives of key management personnel
30.6
25.8
Purchase of investments
3,904.1
1,634.0
Associates/others
3,904.1
1,634.0
Sale of Investments
23,777.9
31,667.3
Associates/others
23,777.9
31,667.3
Investments in the securities issued by related parties
20,937.8
1,850.0
Associates/others
20,937.8
1,850.0
Issuance of securities to related parties
-
1,000.0
Associates/others
-
1,000.0
Redemption/buyback of Investments by related parties
2,500.0
1,615.5
Associates/others
2,500.0
1,615.5
Purchase of fixed assets
1.7
3.4
Associates/others
1.7
3.4
Forex/swaps/derivatives and forwards transactions entered
(notional value)
6,939.8
6,619.8
Associates/others
6,939.8
6,619.8
Guarantees/letters of credit given by the Group
0.1
5.0
Associates/others
0.1
5.0
Insurance premium received
49.4
58.7
Associates/others
48.7
55.3
Key management personnel
0.3
2.6
Relatives of key management personnel
0.4
0.8
Remuneration to wholetime directors1
287.0
336.6
Key management personnel
287.0
336.6
Dividend paid
5.2
3.9
Key management personnel
4.3
3.2
Relatives of key management personnel
0.9
0.7
Value of ESOPs exercised
86.3
306.2
Key management personnel
86.3
306.2
Sale of fixed assets
-
0.2
Key management personnel
-
0.2
1. Excludes the perquisite value on employee stock options exercised and includes performance bonus paid during the period.
304 | Annual Report 2023-24
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forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Interest income
1
India Infradebt Limited
365.5
421.2
Income from services rendered
1
ICICI Lombard General Insurance Company Limited
1,445.6
1,267.5
Gain/(loss) on forex and derivative transactions (net)
1
ICICI Lombard General Insurance Company Limited
61.6
50.8
Income from shared services
1
ICICI Lombard General Insurance Company Limited
169.6
262.0
2
I-Process Services (India) Private Limited
27.0
27.2
3
ICICI Foundation for Inclusive Growth
36.6
37.2
Dividend income
1
ICICI Lombard General Insurance Company Limited
2,476.4
2,240.5
Insurance claims received
1
ICICI Lombard General Insurance Company Limited
40.1
163.0
Interest expense
1
ICICI Lombard General Insurance Company Limited
116.5
140.5
2
ICICI Merchant Services Private Limited
17.9
25.9
Expenses for services received
1
I-Process Services (India) Private Limited
10,885.4
10,406.6
2
ICICI Merchant Services Private Limited
2,085.4
5,226.6
Insurance Premium paid
1
ICICI Lombard General Insurance Company Limited
3,288.0
3,544.6
Expenses for shared services and other payments
1
ICICI Lombard General Insurance Company Limited
5.0
0.8
Insurance claims, surrenders and annuities paid
1
ICICI Lombard General Insurance Company Limited
42.5
16.2
2
ICICI Foundation for Inclusive Growth
1.1
2.3
CSR related reimbursement of expenses
1
ICICI Foundation for Inclusive Growth
5,170.0
4,441.1
Donation given
1
ICICI Foundation for Inclusive Growth
712.3
564.5
Volume of fixed deposits placed
1
I-Process Services (India) Private Limited
5,952.9
4,548.7
2
ICICI Merchant Services Private Limited
5,330.0
2,000.0
Purchase of investments
1
ICICI Lombard General Insurance Company Limited
3,904.1
1,634.0
Sale of Investments
1
ICICI Lombard General Insurance Company Limited
16,160.8
24,647.6
2
India Infradebt Limited
7,617.1
7,019.7
Annual Report 2023-24 | 305
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forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Investments in the securities issued by related parties
1
India Infradebt Limited
20,937.8
1,850.0
Issuance of securities to related parties
1
ICICI Lombard General Insurance Company Limited
-
1,000.0
Redemption/buyback of investments by related parties
1
India Infradebt Limited
2,500.0
-
2
ICICI Lombard General Insurance Company Limited
-
1,615.5
Purchase of fixed assets
1
Arteria Technologies Private Limited
1.7
3.2
Forex/swaps/derivatives and forwards transactions entered
(notional value)
1
ICICI Lombard General Insurance Company Limited
6,289.9
5,933.3
Guarantees/letters of credit given by the Group
1
NIIT Institute of Finance, Banking and Insurance Training
Limited
0.1
2.3
2
Arteria Technologies Private Limited
-
2.7
Insurance premium received
1
ICICI Lombard General Insurance Company Limited
47.2
54.1
Remuneration to wholetime directors
1
Mr. Sandeep Bakhshi
99.7
95.7
2
Mr. Sandeep Batra
86.7
85.3
3
Mr. Rakesh Jha
84.0
45.9
4
Mr. Anup Bagchi
13.7
86.5
5
Mr. Ajay Kumar Gupta
2.9
N.A.
6
Ms. Vishakha Mulye
N.A.
23.2
Dividend paid
1
Mr. Sandeep Bakhshi
2.2
1.8
2
Mr. Sandeep Batra
1.4
0.6
3
Mr. Rakesh Jha
0.7
0.7
4
Mr. Anup Bagchi
-
0.0
5
Mr. Shivam Bakhshi
0.3
0.4
Value of ESOPs exercised
1
Mr. Sandeep Bakhshi
34.5
27.2
2
Mr. Sandeep Batra
13.3
22.0
3
Mr. Rakesh Jha
38.5
-
4
Mr. Anup Bagchi
-
183.2
5
Ms. Vishakha Mulye
N.A.
73.8
Sale of fixed assets
1
Mr. Rakesh Jha
-
0.1
2
Ms. Vishakha Mulye
N.A.
0.1
1. 0.0 represents insignificant amount.
306 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
IV. Related party outstanding balances
The following table sets forth, for the periods indicated, the outstanding balances payable to/receivable from
related parties.
` in million
Items
At
March 31, 2024
At
March 31, 2023
Deposits accepted
2,518.0
2,960.0
Associates/others
2,023.1
2,603.0
Key management personnel
350.8
260.7
Relatives of key management personnel
144.1
96.3
Payables
3,159.4
3,718.3
Associates/others
3,158.4
3,716.9
Key management personnel
0.2
0.4
Relatives of key management personnel
0.8
1.0
Investments of the Group
11,736.7
24,863.5
Associates/others
11,736.7
24,863.5
Investments of related parties in the Group
8.5
1,601.3
Associates/others
-
1,600.0
Key management personnel
2.5
1.1
Relatives of key management personnel
6.0
0.2
Advances by the Group
192.6
277.4
Associates/others
123.0
191.3
Key management personnel
68.8
85.7
Relatives of key management personnel
0.8
0.4
Receivables
238.6
1,538.9
Associates/others
238.6
1,538.9
Relatives of key management personnel
0.0
-
Guarantees issued by the Group
60.2
63.1
Associates/others
60.2
63.1
1. 0.0 represents insignificant amount.
V. Related party maximum balances
The following table sets forth, for the periods indicated, the maximum balances payable to/receivable from
related parties.
` in million
Items
Year ended
March 31, 2024
Year ended
March 31, 2023
Deposits accepted
Key management personnel
351.2
420.7
Relatives of key management personnel
144.1
266.6
Payables2
Key management personnel
1.5
0.4
Relatives of key management personnel
0.9
1.0
Investments of related parties in the Group2
Key management personnel
2.5
1.9
Relatives of key management personnel
6.0
0.3
Advances by the Group
Key management personnel
85.7
139.2
Relatives of key management personnel
2.5
2.3
Receivables2
Relatives of key management personnel
0.0
-
1. 0.0 represents insignificant amount.
2. Maximum balance is determined based on comparison of the total outstanding balances at each quarter end during the
financial year.
Annual Report 2023-24 | 307
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
3.
Employee Stock Option Scheme (ESOS)/Employees Stock Unit Scheme - 2022 (ESUS 2022)
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 five 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 on 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 Board of Directors of the Bank at its Meeting held on June 28, 2022, approved the adoption of Employees Stock
Unit Scheme - 2022 (Scheme 2022), which was subsequently approved by the shareholders at the Annual General
Meeting held on August 30, 2022.
As per the Scheme, maximum of 100,000,000 Units, shall be granted in one or more tranches over a period of seven
years from the date of approval of the Scheme 2022 by the shareholders. The maximum number of Units granted to
any eligible employee shall not exceed 20,000 units in any financial year and 0.14% of the total units available for
grant over a period of seven years from the date of approval of the Unit Scheme by the shareholders.
Units granted under the Scheme 2022 shall vest not later than the maximum vesting period of four years. Exercise
price shall be the face value of equity shares of the Bank i.e. ` 2 for each unit (as adjusted for any changes in capital
structure of the Bank).
Units granted under the scheme 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 13 months from the date of grant. Exercise period of
units is five years from the date of vesting, or such shorter period as may be determined by the Board Governance,
Remuneration & Nomination Committee for each grant.
The weighted average fair value, based on Black-Scholes model, of options granted during the year ended March 31,
2024 was ` 340.59 (year ended March 31, 2023: ` 291.15) and of units granted during the year ended March 31,
2024 was ` 879.43.
308 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
The following table sets forth, for the periods indicated, the key assumptions used to estimate the fair value of
options granted.
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Risk-free interest rate
6.88% to 7.32%
5.99% to 7.37%
Expected term
3.23 to 5.23 years
3.23 to 5.23 years
Expected volatility
24.78% to 37.41%
34.79% to 38.98%
Expected dividend yield
0.56% to 0.85%
0.27% to 0.72%
The following table sets forth, for the periods indicated, the key assumptions used to estimate the fair value of
units granted.
Particulars
Year ended
March 31, 2024
Risk-free interest rate
6.82% to 6.94%
Expected term
1.58 to 3.58 years
Expected volatility
23.63% to 36.56%
Expected dividend yield
0.56%
Risk free interest rates over the expected term of the option/units are based on the government securities yield in
effect at the time of the grant. The expected term of an option/units is estimated based on the vesting term as well as
expected exercise behavior of the employees who receive the option/units. 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/units 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/units 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.
` except number of options
Particulars
Stock options outstanding
Year ended March 31, 2024
Year ended March 31, 2023
Number of
options
Weighted
average
exercise price
Number of
options
Weighted
average
exercise price
Outstanding at the beginning of the year
225,025,803
361.60
237,197,999
310.82
Add: Granted during the year
14,635,600
894.95
25,793,500
747.92
Less: Lapsed during the year, net of
re-issuance
1,410,025
728.44
3,921,340
568.36
Less: Exercised during the year
39,519,912
296.27
34,044,356
276.72
Outstanding at the end of the year
198,731,466
411.26
225,025,803
361.60
Options exercisable
159,296,026
324.55
172,938,533
289.69
The following table sets forth, the summary of stock options outstanding at March 31, 2024.
Range of exercise price
(E per share)
Number of
shares arising
out of options
Weighted average
exercise price
(E per share)
Weighted average
remaining contractual
life (Number of years)
60-199
4,012,005
161.88
1.25
200-399
115,605,713
267.72
3.54
400-599
42,086,634
483.18
3.22
600-799
22,668,214
747.64
5.20
800-899
14,358,900
894.81
6.16
Annual Report 2023-24 | 309
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
The following table sets forth, the summary of stock options outstanding at March 31, 2023.
Range of exercise price
(E per share)
Number of
shares arising
out of options
Weighted average
exercise price
(E per share)
Weighted average
remaining contractual
life (Number of years)
60-199
7,202,993
160.84
1.85
200-399
145,129,078
267.52
4.37
400-599
48,347,432
479.32
4.15
600-799
24,274,900
747.62
6.17
800-899
71,400
862.88
6.58
The following table sets forth, for the periods indicated, the summary of the status of the Bank’s stock unit plan.
` except number of units
Particulars
Stock Units outstanding
Year ended March 31, 2024
Year ended March 31, 2023
Number of
Units
Weighted
average
exercise price
Number of
Units
Weighted
average
exercise price
Outstanding at the beginning of the year
-
-
-
-
Add: Granted during the year
4,419,670
2.00
-
-
Less: Lapsed during the year, net of re-issuance
228,860
2.00
-
-
Less: Exercised during the year
-
-
-
-
Outstanding at the end of the year
4,190,810
2.00
-
-
Units exercisable
2,700
2.00
-
-
At March 31, 2024, the weighted average remaining contractual life of stock units outstanding was 6.24 years.
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, 2024 was ` 972.60 (Year ended March 31, 2023:
` 832.00).
ICICI Life:
ICICI Prudential Life Insurance Company Limited has formulated ESOS for their employees. There was no
compensation cost for the year ended March 31, 2024 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 Limited.
` except number of options
Particulars
Stock options outstanding
Year ended March 31, 2024
Year ended March 31, 2023
Number of
options
Weighted
average
exercise price
Number of
options
Weighted
average
exercise price
Outstanding at the beginning of the year
23,942,115
435.18
20,184,630
404.87
Add: Granted during the year
7,215,300
448.95
5,227,730
541.00
Less: Forfeited/lapsed during the year
613,390
485.02
199,690
461.18
Less: Exercised during the year
2,094,015
394.28
1,270,555
384.94
Outstanding at the end of the year
28,450,010
440.61
23,942,115
435.18
Options exercisable
16,332,549
415.08
13,559,815
395.34
310 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
The following table sets forth, summary of stock options outstanding of ICICI Prudential Life Insurance Company
Limited at March 31, 2024.
Range of exercise price
(E per share)
Number of
shares arising
out of options
Weighted average
exercise price
(E per share)
Weighted average
remaining contractual
life (Number of years)
300-399
7,363,410
379.67
2.36
400-499
15,904,970
435.91
5.09
500-599
5,127,130
540.79
5.12
600-699
54,500
619.43
4.87
The following table sets forth, summary of stock options outstanding of ICICI Prudential Life Insurance Company
Limited at March 31, 2023.
Range of exercise price
(E per share)
Number of
shares arising
out of options
Weighted average
exercise price
(E per share)
Weighted average
remaining contractual
life (Number of years)
300-399
8,825,615
379.70
3.20
400-499
9,896,370
428.41
5.27
500-599
5,165,630
541.00
6.10
600-699
54,500
619.43
5.06
ICICI General1:
ICICI Lombard General Insurance Company Limited has formulated ESOS for their employees. There was no
compensation cost for the year ended March 31, 2024 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
Lombard General Insurance Company Limited.
` except number of options
Particulars
Stock options outstanding
Year ended March 31, 2024
Number of
options
Weighted average
exercise price
Outstanding at the beginning of the year
12,646,890
1,398.39
Add: Granted during the year
4,527,220
1,115.92
Less: Forfeited/lapsed during the year
1,074,224
1,276.98
Less: Exercised during the year
1,563,002
1,055.30
Outstanding at the end of the year
14,536,884
1,074.44
Options exercisable
5,497,000
888.94
Annual Report 2023-24 | 311
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
The following table sets forth, summary of stock options outstanding of ICICI Lombard General Insurance
Company Limited at March 31, 2024.
Range of exercise price
(E per share)
Number of
shares arising
out of options
Weighted average
exercise price
(E per share)
Weighted average
remaining contractual
life (Number of years)
700-800
1,105,080
715.15
2.45
800-1100
1,540,310
1,086.85
2.05
1100-1200
4,038,370
1,104.10
6.05
1200-1300
1,924,840
1,235.15
3.11
1300-1400
3,439,304
1,363.10
5.41
1400-1500
2,348,980
1,417.15
4.05
1500-1600
40,000
1,589.70
5.10
1600-1700
100,000
1,639.25
6.90
1. ICICI Lombard General Insurance Company Limited ceased to be an associate and became a subsidiary of the Bank w.e.f.
February 29, 2024.
ICICI Securities:
ICICI Securities Limited has formulated ESOS and ESUS 2022 for their employees. There was no compensation cost
for the year ended March 31, 2024 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.
` except number of options
Particulars
Stock options outstanding
Year ended March 31, 2024
Year ended March 31, 2023
Number of
options
Weighted
average
exercise price
(E per share)
Number of
options
Weighted
average
exercise price
(E per share)
Outstanding at the beginning of the year
4,146,544
445.94
2,939,279
342.43
Add: Granted during the year
2,568,250
473.28
1,657,700
624.68
Less: Forfeited/lapsed during the year
165,680
544.97
263,980
514.77
Less : Exercised during the year
489,029
349.77
186,455
305.89
Outstanding at the end of the year
6,060,085
462.58
4,146,544
445.94
Options exercisable
2,266,545
382.85
1,588,294
306.03
The following table sets forth, summary of stock options outstanding of ICICI Securities Limited at March 31, 2024.
Range of exercise price
(E per share)
Number of
shares arising
out of options
Weighted average
exercise price
(E per share)
Weighted average
remaining contractual
life (Number of years)
200-249
505,550
221.45
2.06
250-299
37,730
256.55
1.55
350-399
994,940
361.00
3.10
400-449
625,410
424.60
4.05
450-499
2,362,550
465.10
6.05
500-549
4,700
512.10
5.80
600-649
1,529,205
624.94
5.17
312 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
The following table sets forth, summary of stock options outstanding of ICICI Securities Limited at March 31, 2023.
Range of exercise price
(E per share)
Number of
shares arising
out of options
Weighted average
exercise price
(E per share)
Weighted average
remaining contractual
life (Number of years)
200-249
696,230
221.45
3.10
250-299
37,730
256.55
2.98
350-399
1,127,904
361.00
4.13
400-449
749,880
424.60
5.10
500-549
4,700
512.10
6.81
600-649
1,523,800
625.00
6.05
750-799
6,300
774.60
5.30
The following table sets forth, for the periods indicated, a summary of the status of the stock unit plan of ICICI
Securities Limited.
` except number of options
Particulars
Stock options outstanding
Year ended March 31, 2024
Year ended March 31, 2023
Number of
options
Weighted
average
exercise price
(E per share)
Number of
options
Weighted
average
exercise price
(E per share)
Outstanding at the beginning of the year
-
-
-
-
Add: Granted during the year
800,990
5.00
-
-
Less: Lapsed during the year, net of re-issuance
92,770
5.00
-
-
Less: Exercised during the year
-
-
-
-
Outstanding at the end of the year
708,220
5.00
-
-
Options exercisable
-
-
-
-
At March 31, 2024, the weighted average remaining contractual life of stock units outstanding was 6.13 years.
4.
Fixed assets
The following table sets forth, for the periods indicated, the movement in software acquired by the Group, as
included in fixed assets.
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
At cost at March 31 of preceding year
36,232.4
33,010.5
Add: Adjustments1,2
8,307.6
-
Adjusted cost at March 31
44,540.0
33,010.5
Additions during the year
7,555.5
5,480.1
Deductions during the year
(876.3)
(2,258.2)
Depreciation to date
(37,492.7)
(26,065.1)
Net block
13,726.5
10,167.3
1. ICICI Lombard General Insurance Company Limited ceased to be an associate and became a subsidiary of the Bank w.e.f.
February 29, 2024.
2. I-Process Services (India) Private Limited ceased to be an associate and became a subsidiary of the Bank w.e.f. March 20, 2024
and became a wholly-owned subsidiary of the Bank w.e.f. March 22, 2024.
Annual Report 2023-24 | 313
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
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.
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
Not later than one year
992.7
924.1
Later than one year and not later than five years
2,462.6
1,443.2
Later than five years
2,375.1
396.2
Total
5,830.4
2,763.5
(ii) Total of non-cancellable lease payments recognised in the profit and loss account for the year ended
March 31, 2024 is ` 1,540.5 million (year ended March 31, 2023: ` 1,064.3 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.
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
A. Total minimum lease payments outstanding
Not later than one year
249.8
271.3
Later than one year and not later than five years
359.9
596.1
Later than five years
0.2
14.9
Total
609.9
882.3
B. Interest cost payable
Not later than one year
42.6
70.0
Later than one year and not later than five years
41.1
83.3
Later than five years
-
0.5
Total
83.7
153.8
C. Present value of minimum lease payments payable (A-B)
Not later than one year
207.2
201.3
Later than one year and not later than five years
318.8
512.8
Later than five years
0.2
14.4
Total
526.2
728.5
314 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
5.3 Assets given under finance lease
The following table sets forth, for the periods indicated, the details of finance leases.
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
Future minimum lease receipts
Present value of lease receipts
34.3
50.2
Unmatured finance charges
0.8
2.0
Sub total
35.1
52.2
Less: collective provision
(0.1)
(0.2)
Total
35.0
52.0
Maturity profile of future minimum lease receipts
-
Not later than one year
35.1
19.0
-
Later than one year and not later than five years
0.0
33.2
-
Later than five years
-
-
Total
35.1
52.2
Less: collective provision
(0.1)
(0.2)
Total
35.0
52.0
Maturity profile of present value of lease rentals
The following table sets forth, for the periods indicated, the details of maturity profile of present value of finance
lease receipts.
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
Maturity profile of future present value of finance lease receipts
-
Not later than one year
34.3
17.7
-
Later than one year and not later than five years
-
32.5
-
Later than five years
-
-
Total
34.3
50.2
Less: collective provision
(0.1)
(0.2)
Total
34.2
50.0
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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Provision for depreciation of investments1
7,049.6
13,917.0
Provision towards non-performing and other assets
9,635.7
(3,653.5)
Provision towards income tax
a) Current
136,933.0
114,564.4
b) Deferred
17,343.2
3,370.0
Other provisions and contingencies2,3
20,438.8
59,135.7
Total provisions and contingencies
191,400.3
187,333.6
1. During the year ended March 31, 2024, the Group made a provision of ` 5,105.0 million against its investments in Alternative
Investment Funds (AIFs) as per RBI circular dated December 19, 2023.
2. No contingency provision was made by the Bank during year ended March 31, 2024 (year ended March 31, 2023: ` 56,500.0 million).
3. Includes general provision made towards standard assets, provision made on fixed assets acquired under debt-asset swap and
non-fund based facilities.
Annual Report 2023-24 | 315
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
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.
7.
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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening obligations
18,429.1
18,661.0
Service cost
114.8
151.7
Interest cost
1,314.0
1,150.6
Actuarial (gain)/loss
(11.5)
758.2
Past service cost
306.91
-
Liabilities extinguished on settlement
(2,137.9)
(2,192.6)
Benefits paid
(95.5)
(99.8)
Obligations at the end of year
17,919.9
18,429.1
Opening plan assets, at fair value
18,190.2
19,843.3
Expected return on plan assets
1,361.0
1,522.0
Actuarial gain/(loss)
439.5
(682.0)
Assets distributed on settlement
(2,375.4)
(2,436.2)
Contributions
401.7
42.9
Benefits paid
(95.5)
(99.8)
Closing plan assets, at fair value
17,921.5
18,190.2
Fair value of plan assets at the end of the year
17,921.5
18,190.2
Present value of the defined benefit obligations at the end of the year
(17,919.9)
(18,429.1)
Amount not recognised as an asset (limit in Para 59(b) of AS 15 on
‘employee benefits’)
-
-
Asset/(liability)
1.6
(238.9)
Cost2
Service cost
114.8
151.7
Interest cost
1,314.0
1,150.6
Expected return on plan assets
(1,361.0)
(1,522.0)
316 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Actuarial (gain)/loss
(451.0)
1,440.2
Past service cost
306.91
-
Curtailments & settlements (gain)/loss
237.5
243.6
Effect of the limit in para 59(b) of AS 15 on ‘employee benefits’
-
(401.9)
Net cost
161.2
1,062.2
Actual return on plan assets
1,800.5
840.0
Expected employer’s contribution next year
400.0
1,000.0
Investment details of plan assets
Government of India securities
41.46%
41.74%
Corporate bonds
46.59%
48.30%
Equity securities in listed companies
9.35%
7.08%
Others
2.60%
2.88%
Assumptions
Discount rate
7.20%
7.30%
Salary escalation rate:
On Basic pay
1.50%
1.50%
On Dearness relief
8.00%
8.00%
Estimated rate of return on plan assets
7.50%
7.50%
1. Represents impact towards dearness allowance neutralization as per IBA notification dated October 16, 2023.
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
` in million
Particulars
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2022
Year ended
March 31,
2021
Year ended
March 31,
2020
Fair value of plan assets
17,921.5
18,190.2
19,843.3
21,162.2
16,972.1
Defined benefit obligations
(17,919.9)
(18,429.1)
(18,661.0)
(20,265.6)
(19,914.3)
Amount not recognised as an asset
(limit in para 59(b) of AS 15 on
‘employee benefits’)
-
-
(401.9)
(304.8)
-
Surplus/(deficit)
1.6
(238.9)
780.4
591.8
(2,942.2)
Experience adjustment on plan assets
439.5
(682.0)
(331.9)
521.9
741.1
Experience adjustment on plan
liabilities
(227.0)
805.8
809.0
613.4
2,186.1
Annual Report 2023-24 | 317
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening obligations
18,896.8
16,895.1
Add: Adjustment for exchange fluctuation on opening obligation
2.4
12.2
Add: Adjustment1,2
1,695.1
-
Adjusted obligations
20,594.3
16,907.3
Service cost
1,915.7
1,643.8
Interest cost
1,435.5
1,166.7
Actuarial (gain)/loss
1,246.5
1,108.1
Past service cost
-
(72.2)
Liability transferred from/to other companies
13.9
20.9
Benefits paid
(1,785.0)
(1,877.8)
Obligations at the end of the year
23,420.9
18,896.8
Opening plan assets, at fair value
17,061.6
16,738.3
Add: Adjustment1,2
1,608.9
-
Adjusted plan assets at fair value
18,670.5
16,738.3
Expected return on plan assets
1,238.9
1,197.7
Actuarial gain/(loss)
870.5
(577.3)
Contributions
3,932.8
1,544.4
Assets transferred from/to other companies
13.9
36.5
Benefits paid
(1,778.1)
(1,877.8)
Closing plan assets, at fair value
22,948.5
17,061.6
Fair value of plan assets at the end of the year
22,948.5
17,061.6
Present value of the defined benefit obligations at the end of the year
(23,420.9)
(18,896.8)
Amount not recognised as an asset (limit in para 59(b) of AS 15 on
‘employee benefits’)
-
-
Asset/(liability)
(472.4)
(1,835.2)
Cost3
Service cost
1,915.7
1,643.8
Interest cost
1,435.5
1,166.7
Expected return on plan assets
(1,238.9)
(1,197.7)
Actuarial (gain)/loss
376.1
1,685.4
Past service cost
-
(72.2)
Exchange fluctuation loss/(gain)
2.4
12.2
Effect of the limit in para 59(b) of AS 15 on ‘employee benefits’
-
-
Net cost
2,490.8
3,238.2
Actual return on plan assets
2,109.3
620.4
Expected employer’s contribution next year
1,731.0
1,731.0
318 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Investment details of plan assets
Insurer managed funds
21.85%
9.97%
Government of India securities
30.73%
30.07%
Corporate bonds
34.90%
42.87%
Equity
11.23%
15.04%
Others
1.29%
2.05%
Assumptions
Discount rate
7.15%-7.25%
7.30%-7.50%
Salary escalation rate
7.00%-10.00%
7.00%-10.00%
Estimated rate of return on plan assets
7.00%-7.50%
7.00%-8.00%
1. ICICI Lombard General Insurance Company Limited ceased to be an associate and became a subsidiary of the Bank w.e.f.
February 29, 2024.
2. I-Process Services (India) Private Limited ceased to be an associate and became a subsidiary of the Bank w.e.f. March 20, 2024
and became a wholly-owned subsidiary of the Bank w.e.f. March 22, 2024.
3. 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
` in million
Particulars
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2022
Year ended
March 31,
2021
Year ended
March 31,
2020
Fair value of plan assets
22,948.5
17,061.6
16,738.3
16,541.6
13,636.8
Defined benefit obligations
(23,420.9)
(18,896.8)
(16,895.1)
(16,954.5)
(15,743.6)
Amount not recognised as an asset
(limit in para 59(b) of AS 15 on
‘employee benefits’)
-
-
-
-
-
Surplus/(deficit)
(472.4)
(1,835.2)
(156.8)
(412.9)
(2,106.8)
Experience adjustment on plan assets
870.5
(577.3)
(33.1)
892.1
(167.4)
Experience adjustment on plan
liabilities
1,211.4
869.4
464.7
(548.2)
253.6
The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.
Annual Report 2023-24 | 319
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
Provident Fund (PF)
The Group does not have any liability towards interest rate guarantee on exempt provident fund on the basis of
actuarial valuation, the Group has not made any provision for the year ended March 31, 2024 (year ended March 31,
2023: 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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Opening obligations
55,367.7
49,411.5
Less: Adjustments1
-
(655.3)
Adjusted balance
55,367.7
48,756.2
Service cost
3,381.8
2,747.6
Interest cost
4,237.9
3,367.1
Actuarial (gain)/loss
919.2
1,032.8
Employees contribution
5,726.7
4,707.4
Liability transferred from/to other companies
1,169.0
805.2
Benefits paid
(5,782.3)
(6,048.6)
Obligations at end of the year
65,020.0
55,367.7
Opening plan assets, at fair value
56,128.1
50,656.3
Less: Adjustments1
-
(407.5)
Adjusted balance
56,128.1
50,248.8
Expected return on plan assets
4,613.3
4,100.3
Actuarial gain/(loss)
1,400.7
(432.8)
Employer contributions
3,381.8
2,747.6
Employees contributions
5,726.6
4,707.4
Assets transfer from/to other companies
1,169.0
805.4
Benefits paid
(5,782.3)
(6,048.6)
Closing plan assets, at fair value
66,637.2
56,128.1
Plan assets at the end of the year
66,637.2
56,128.1
Present value of the defined benefit obligations at the end of the year
(65,020.0)
(55,367.7)
Amount not recognised as an asset (Limit in para 59(b) of AS 15 on
‘employee benefits’)2
(1,617.2)
(760.4)
Asset/(liability)
-
-
Cost3
Service cost
3,381.8
2,747.6
Interest cost
4,237.9
3,367.1
Expected return on plan assets
(4,613.3)
(4,100.3)
Actuarial (gain)/loss
(481.6)
1,465.6
Effect of limit in para 59(b)2
856.9
(732.4)
320 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Net cost
3,381.7
2,747.6
Actual return on plan assets
6,014.0
3,667.5
Expected employer's contribution next year
3,650.8
2,965.9
Investment details of plan assets
Government of India securities
54.37%
55.20%
Corporate Bonds
33.57%
34.83%
Special deposit scheme
0.81%
0.96%
Others
11.25%
9.01%
Assumptions
Discount rate
7.15%-7.20%
7.35%-7.40%
Expected rate of return on assets
7.84%-8.43%
7.97%-8.76%
Discount rate for the remaining term to maturity of investments
7.20%-7.25%
7.40%-7.60%
Average historic yield on the investment
7.84%-8.53%
8.01%-8.96%
Guaranteed rate of return
8.25%-8.25%
8.15%-8.15%
1. 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.
2. Pursuant to revised Guidance Note 29 on “Valuation of Interest Rate Guarantees on Exempt Provident Funds under AS 15
(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.
3. Included in line item ‘Payments to and provision for employees’ of Schedule- 16 Operating expenses.
Experience adjustment
` in million
Particulars
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2022
Year ended
March 31,
2021
Year ended
March 31,
2020
Fair value of plan assets
66,637.2
56,128.1
50,656.3
45,615.2
38,682.6
Defined benefit obligations
(65,020.0)
(55,367.7)
(49,411.5)
(45,617.9)
(38,703.4)
Amount not recognised as an
asset (limit in para 59(b) AS 15 on
‘employee benefits’)1
(1,617.2)
(760.4)
(1,244.8)
-
-
Surplus/(deficit)
-
-
-
(2.7)
(20.8)
Experience adjustment on plan assets
1,400.7
(432.8)
415.1
663.8
(662.0)
Experience adjustment on plan
liabilities
445.6
753.2
(684.8)
1,703.3
(129.9)
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.
Annual Report 2023-24 | 321
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
The Group has contributed ` 5,861.0 million to provident fund including Government of India managed employees
provident fund for the year ended March 31, 2024 (year ended March 31, 2023: ` 4,344.2 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 ` 355.1 million for the year ended March 31, 2024 (year ended March 31, 2023: ` 321.8
million) to Superannuation Fund for employees who had opted for the scheme.
National Pension Scheme (NPS)
The Group has contributed ` 452.2 million for the year ended March 31, 2024 (year ended March 31, 2023: ` 361.1
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.
` in million
Particulars
Year ended
March 31, 2024
Year ended
March 31, 2023
Total actuarial liability
5,436.0
3,629.6
Cost1
1,702.2
884.9
Assumptions
Discount rate
7.12%-7.25%
7.30%-7.55%
Salary escalation rate
5.96%-10.00%
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, 2024 amounted to ` 154,276.2
million (year ended March 31, 2023: ` 117,934.4 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.
322 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
9.
Deferred tax
At March 31, 2024, the Group has recorded net deferred tax asset of ` 63,115.8 million (March 31, 2023: ` 76,194.4
million), which has been included in other assets.
The following table sets forth, for the periods indicated, the break-up of deferred tax assets and liabilities into major
items.
` in million
Particulars
At
March 31, 2024
At
March 31, 2023
Deferred tax assets
Provision for bad and doubtful debts
95,145.6
104,780.1
Provision for operating expenses
4,026.9
4,026.9
Provision/MTM on investment
6,774.4
5,404.1
Provision for expense allowed on payment basis
5,175.4
4,870.3
Unexpired risk reserve
1,486.5
-
Foreign currency translation reserve1
148.0
(615.0)
Others2
2,213.2
822.0
Total deferred tax assets
114,970.0
119,288.4
Deferred tax liabilities
Special reserve deduction
45,489.3
37,695.4
Mark-to-market gains1
620.6
490.0
Depreciation on fixed assets
5,074.3
4,476.7
Interest on refund of taxes1
441.9
206.2
Others
228.1
225.7
Total deferred tax liabilities
51,854.2
43,094.0
Total net deferred tax assets/(liabilities)
63,115.8
76,194.4
1. These items are considered in accordance with the requirements of Income Computation and Disclosure Standards (ICDS).
2. Includes deferred tax assets created primarily on operating loss, interest on credit impaired loans and provision for diminution in
value of investments.
Annual Report 2023-24 | 323
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
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 Lombard General Insurance Company Limited, 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, ICICI Prudential Pension Funds Management Company Limited and
I-Process Services (India) Private 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.
The results of reported segments for the year ended March 31, 2024 are not comparable with that of reported
segments for the year ended March 31, 2023 to the extent new entities have been consolidated and entities
that have been discontinued from consolidation.
324 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
The following table sets forth, the business segment results for the year ended March 31, 2024.
` in million
Sr.
no. Particulars
Retail
banking
Wholesale
banking
Treasury
Other
banking
business
Life
insurance
Others
Inter-
segment
adjustments
Total
1
Revenue
1,345,475.7
717,802.2
1,137,018.3
64,034.0
542,361.3
159,326.8 (1,605,641.1)
2,360,377.2
2
Segment results1
188,491.7
199,717.1
146,408.8
16,384.0
9,232.3
62,301.7
(18,192.0)
604,343.6
3
Unallocated
expenses
-
4
Share of profit from
associates
10,737.7
5
Operating profit
(2) – (3) + (4)1
615,081.3
6
Income tax expenses
(net)/(net deferred
tax credit)
154,276.2
7
Net profit2 (5) – (6)
460,805.1
Other information
8
Segment assets
7,193,136.2
4,824,561.0
6,340,548.0
893,056.2
2,987,952.9
1,508,283.1
(182,618.8)
23,564,918.6
9
Unallocated assets
75,711.7
10
Total assets (8) + (9)
23,640,630.3
11
Segment liabilities
10,198,454.9
4,565,715.3
3,815,846.83
607,215.63
2,989,997.03
1,515,019.53
(182,618.8)3
23,509,630.3
12
Unallocated liabilities
131,000.0
13
Total liabilities
(11) + (12)
23,640,630.3
14
Capital expenditure
19,984.4
7,806.3
1,390.0
598.4
3,128.9
3,669.0
-
36,577.0
15
Depreciation
10,978.1
4,596.4
788.2
444.8
1,129.0
1,432.0
(16.4)
19,352.1
1. Profit before tax and minority interest.
2. Includes share of net profit of minority shareholders.
3. Includes share capital and reserves and surplus.
Annual Report 2023-24 | 325
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
The following table sets forth, the business segment results for the year ended March 31, 2023.
` in million
Sr.
no. Particulars
Retail
banking
Wholesale
banking
Treasury
Other
banking
business
Life
insurance
Others
Inter-
segment
adjustments
Total
1
Revenue
1,037,753.4
506,148.5
845,369.2
44,640.0
479,301.7
97,259.8
(1,148,684.6)
1,861,788.0
2
Segment results1
175,336.8
157,857.8
140,372.1
10,014.5
8,968.9
42,023.7
(15,509.2)
519,064.6
3
Unallocated
expenses
56,500.0
4
Share of profit from
associates
9,982.9
5
Operating profit
(2) – (3) + (4)1
472,547.5
6
Income tax expenses
(net)/(net deferred
tax credit)
117,934.4
7
Net profit2 (5) – (6)
354,613.1
Other information
8
Segment assets
6,039,593.7
4,328,743.5
5,129,405.0
836,960.5
2,556,899.0
711,348.4
(114,612.3)
19,488,337.8
9
Unallocated assets
96,567.2
10
Total assets (8) + (9)
19,584,905.0
11
Segment liabilities
8,913,545.4
3,472,764.9
3,344,275.63
564,779.63
2,558,472.03
714,679.83
(114,612.3)3
19,453,905.0
12
Unallocated
liabilities
131,000.0
13
Total liabilities
(11) + (12)
19,584,905.0
14
Capital expenditure
11,682.9
5,251.8
610.6
455.2
1,357.0
1,884.8
-
21,242.3
15
Depreciation
9,274.5
3,427.2
335.8
405.2
835.1
884.2
(16.4)
15,145.6
1. Profit before tax and minority interest.
2. Includes share of net profit of minority shareholders.
3. Includes share capital and reserves and surplus.
326 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
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.
` in million
Revenue
Year ended
March 31, 2024
Year ended
March 31, 2023
Domestic operations1
2,296,083.0
1,819,445.3
Foreign operations
75,031.9
52,325.6
Total
2,371,114.9
1,871,770.9
1. Includes share of profit from associates of ` 10,737.7 million (March 31, 2023: ` 9,982.9 million).
` in million
Assets
At
March 31, 2024
At
March 31, 2023
Domestic operations
22,366,146.4
18,242,212.3
Foreign operations
1,198,772.2
1,246,125.5
Total
23,564,918.6
19,488,337.8
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
Capital expenditure
incurred during the
Depreciation provided
during the
Year ended
March 31, 2024
Year ended
March 31, 2023
Year ended
March 31, 2024
Year ended
March 31, 2023
Domestic operations
36,299.6
20,914.1
19,081.8
14,867.2
Foreign operations
277.4
328.2
270.4
278.4
Total
36,577.0
21,242.3
19,352.2
15,145.6
11. Penalties/fines imposed by banking regulatory bodies
RBI imposed a penalty of ` 121.9 million on October 17, 2023 based on the deficiency observed in regulatory
compliance with the Banking Regulation Act, during Statutory Inspections for supervisory evaluation (ISE 2020 and
ISE 2021) of the Bank conducted by RBI (year ended March 31, 2023: Nil).
Annual Report 2023-24 | 327
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
12. Additional information to consolidated accounts
Additional information to consolidated accounts at March 31, 2024 (Pursuant to Schedule III of the Companies Act,
2013).
` in million
Name of the entity
Net assets2
Share in profit or loss
% of total
net assets
Amount
% of total
net profit
Amount
Parent
ICICI Bank Limited
93.1% 2,383,993.2
92.4%
408,882.7
Subsidiaries
Indian
ICICI Securities Primary Dealership Limited
0.7%
18,288.0
0.9%
4,139.1
ICICI Securities Limited
1.5%
38,825.6
3.9%
17,305.9
ICICI Home Finance Company Limited
1.1%
28,029.3
1.2%
5,316.0
ICICI Trusteeship Services Limited
0.0%
9.7
0.0%
1.1
ICICI Investment Management Company Limited
0.0%
129.5
(0.0%)
(57.6)
ICICI Venture Funds Management Company Limited
0.1%
2,483.4
0.0%
110.2
ICICI Prudential Life Insurance Company Limited
4.3%
110,082.3
1.9%
8,523.9
ICICI Lombard General Insurance Company Limited3
5.1%
129,493.3
0.3%
1,543.9
ICICI Prudential Trust Limited
0.0%
19.8
0.0%
4.7
ICICI Prudential Asset Management Company Limited
1.0%
24,849.0
4.1%
18,145.0
ICICI Prudential Pension Funds Management Company
Limited
0.0%
560.2
(0.0%)
(17.2)
I-Process Services (India) Private Limited4
0.0%
619.8
0.0%
15.6
Foreign
ICICI Bank UK PLC
1.1%
28,146.7
0.5%
2,277.8
ICICI Bank Canada
1.1%
28,043.6
1.0%
4,500.7
ICICI International Limited
0.0%
130.6
0.0%
6.7
ICICI Securities Holdings Inc.
0.0%
131.9
(0.0%)
(1.0)
ICICI Securities Inc.
0.0%
396.5
0.0%
25.6
Other consolidated entities
Indian
ICICI Strategic Investments Fund
0.0%
129.8
0.0%
7.6
Foreign
NIL
-
-
-
-
Minority Interests
(5.4%)
(138,884.2)
(4.1%)
(18,241.4)
Associates
Indian
ICICI Lombard General Insurance Company Limited3
1.9%
8,452.0
I-Process Services (India) Private Limited4
0.0%
25.4
NIIT Institute of Finance Banking and Insurance Training
Limited
-
-
0.0%
10.7
328 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
` in million
Name of the entity
Net assets2
Share in profit or loss
% of total
net assets
Amount
% of total
net profit
Amount
ICICI Merchant Services Private Limited
-
-
0.0%
215.8
India Infradebt Limited
-
-
0.4%
1,869.7
India Advantage Fund III
-
-
0.0%
60.6
India Advantage Fund IV
-
-
0.0%
85.7
Arteria Technologies Private Limited
-
-
0.0%
17.9
Foreign
NIL
-
-
-
-
Joint Ventures
NIL
-
-
-
-
Inter-company adjustments
(3.7%)
(94,039.7)
(4.7%)
(20,663.4)
TOTAL
100.0% 2,561,438.3
100.0%
442,563.7
1. 0.0 represents insignificant amount.
2. Total assets minus total liabilities.
3. ICICI Lombard General Insurance Company Limited ceased to be an associate and became a subsidiary of the Bank w.e.f.
February 29, 2024.
4. I-Process Services (India) Private Limited ceased to be an associate and became a subsidiary of the Bank w.e.f. March 20, 2024
and became a wholly-owned subsidiary of the Bank w.e.f. March 22, 2024.
Additional information to consolidated accounts at March 31, 2023 (Pursuant to Schedule III of the Companies Act,
2013).
` in million
Name of the entity
Net assets2
Share in profit or loss
% of total
net assets
Amount
% of total
net profit
Amount
Parent
ICICI Bank Limited
93.6%
2,007,153.8
93.7%
318,965.0
Subsidiaries
Indian
ICICI Securities Primary Dealership Limited
0.7%
15,815.5
0.4%
1,277.8
ICICI Securities Limited
1.3%
28,219.2
3.3%
11,334.7
ICICI Home Finance Company Limited
1.1%
22,998.6
1.1%
3,653.1
ICICI Trusteeship Services Limited
0.0%
8.7
0.0%
0.1
ICICI Investment Management Company Limited
0.0%
187.0
(0.0%)
(58.7)
ICICI Venture Funds Management Company Limited
0.1%
2,473.3
0.0%
61.9
ICICI Prudential Life Insurance Company Limited
4.7%
100,915.8
2.4%
8,106.6
ICICI Prudential Trust Limited
0.0%
16.9
0.0%
2.2
ICICI Prudential Asset Management Company Limited
1.0%
21,478.8
4.4%
15,077.0
ICICI Prudential Pension Funds Management Company
Limited
0.0%
577.5
0.0%
28.3
Annual Report 2023-24 | 329
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
` in million
Name of the entity
Net assets2
Share in profit or loss
% of total
net assets
Amount
% of total
net profit
Amount
Foreign
ICICI Bank UK PLC
1.2%
26,158.3
0.3%
1,045.9
ICICI Bank Canada
1.2%
25,256.2
0.8%
2,818.9
ICICI International Limited
0.0%
122.0
0.0%
8.9
ICICI Securities Holdings Inc.
0.0%
132.7
0.0%
2.0
ICICI Securities Inc.
0.0%
364.8
0.0%
58.3
Other consolidated entities
Indian
ICICI Strategic Investments Fund
0.0%
119.4
0.0%
3.7
Foreign
NIL
-
-
-
-
Minority interests
(3.1%)
(66,867.5)
(4.2%)
(14,246.7)
Associates
Indian
ICICI Lombard General Insurance Company Limited
-
-
2.4%
8,303.1
I-Process Services (India) Private Limited
-
-
0.0%
37.7
NIIT Institute of Finance Banking and Insurance Training
Limited
-
-
0.0%
3.3
ICICI Merchant Services Private Limited
-
-
0.0%
63.0
India Infradebt Limited
-
-
0.5%
1,560.2
India Advantage Fund III
-
-
0.0%
0.0
India Advantage Fund IV
-
-
(0.0%)
(0.2)
Arteria Technologies Private Limited
-
-
0.0%
15.7
Foreign
NIL
-
-
-
-
Joint Ventures
NIL
-
-
-
-
Inter-company adjustments
(1.8%)
(40,153.1)
(5.1%)
(17,755.4)
TOTAL
100.0% 2,144,977.9
100.0%
340,366.4
1. 0.0 represents insignificant amount.
2. Total assets minus total liabilities.
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’. In accordance with the
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, 2024 was ` 55,184.5 million (March 31, 2023: ` 55,500.0 million) as compared to the
historical cost less accumulated depreciation of ` 24,062.4 million (March 31, 2023: ` 24,581.6 million).
The revaluation reserve is not available for distribution of dividend.
330 | Annual Report 2023-24
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
14. Proposed dividend on equity shares
The Board of Directors at its meeting held on April 27, 2024 has recommended a dividend of ` 10.00 per equity
share for the year ended March 31, 2024 (year ended March 31, 2023: ` 8.00 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. //DOR.ACC.REC.No.74/21.04.018/2022-23 dated October 11, 2022, 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 5% (10% till March 31, 2023) of the reported net profits before provisions and contingencies
or (b) the additional gross NPAs identified by RBI exceed 5% (10% till March 31, 2023) 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, 2023 and for the year ended March 31, 2022.
16. Disclosure on lending and borrowing activities
The Bank and other subsidiaries, 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. Acquisition of ICICI Lombard General Insurance Company Limited
On May 28, 2023, the Board of Directors of the Bank approved to increase 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 the Company, a
subsidiary of the Bank, subject to receipt of necessary regulatory approval(s). On August 4, 2023, RBI vide letter
CO.DOR.RAUG.AUT.No.S2656/24.01.002/2023-24, had conveyed the approval to the Bank for acquiring additional
stake in ICICI Lombard General Insurance Company Limited. On September 1, 2023, IRDAI vide letter 733/F&I/ToS/
ICICIL/FY24/1/59 had also conveyed the approval in connection to above. Accordingly, the Bank through stock
exchange mechanism had acquired the additional stake in ICICI Lombard General Insurance Company Limited in
multiple tranches, resulting into increase in shareholding of more than 50.0%. Consequently, ICICI Lombard General
Insurance Company Limited ceased to be an associate and became a subsidiary of the Bank w.e.f. February 29,
2024. Accordingly, goodwill of ` 23,728.3 million was recognised on purchase of additional stake in ICICI Lombard
General Insurance Company Limited.
Annual Report 2023-24 | 331
Integrated Report
Statutory Reports
Financial Statements
SCHEDULES
forming part of the Consolidated Accounts (Contd.)
CONSOLIDATED FINANCIAL STATEMENTS OF ICICI BANK LIMITED
18. Acquisition of I-Process Services (India) Private Limited
On February 17-18, 2023, the Board of Directors of the Bank approved to make I-Process Services (India) Private
Limited a wholly-owned subsidiary of the Bank, subject to receipt of requisite regulatory and statutory approvals.
On September 8, 2023, RBI vide letter CO.DoR.RAUG.No.S3282/24.01.002/2023-24, had conveyed the approval
to the Bank in connection to above. On January 30, 2024, the Bank entered into a share purchase agreement in
relation to investment in equity shares of I-Process Services (India) Private Limited. Accordingly, the Bank purchased
equity shares of the Company in off-market transactions. Consequently, I-Process Services (India) Private Limited
ceased to be an associate and became a subsidiary of the Bank w.e.f. March 20, 2024. Subsequently, I-Process
Services (India) Private Limited became a wholly-owned subsidiary of the Bank w.e.f. March 22, 2024. Accordingly,
capital reserve of ` 358.5 million was recognised on purchase of additional stake in I-Process Services (India) Private
Limited.
19. De-listing of ICICI Securities Company Limited
The Board of Directors of the Bank on June 29, 2023 approved the draft scheme of arrangement for delisting of
equity shares of ICICI Securities Limited, subject to receipt of requisite approvals. Pursuant to the order of the Hon’ble
National Company Law Tribunal, Ahmedabad Bench, a meeting of the Equity Shareholders of the Bank was held on
March 27, 2024, wherein the proposed Scheme was approved by the requisite majority of shareholders. The scheme
is currently pending final approval of the Hon’ble National Company Law Tribunal, Ahmedabad Bench.
20. Additional 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.
21. Comparative figures
During FY2024, ICICI Lombard General Insurance Company Limited and I-Process Services (India) Private Limited
has become subsidiaries due to increase in the Bank’s shareholding above 50.0%. Accordingly, the consolidated
financial statements for FY2024 are not comparable with the previous year.
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
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Ajay Kumar Gupta
Executive Director
DIN-07580795
For KKC & Associates LLP
Chartered Accountants
ICAI Firm Registration no.:
105146W/W100621
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
Vinit Jain
Partner
Membership no.: 145911
Mumbai
April 27, 2024
332 | Annual Report 2023-24
STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENTS OF SUBSIDIARIES,
ASSOCIATE COMPANIES AND JOINT VENTURES
Part “A”: Subsidiaries
` in million
Particulars
ICICI
Securities
Primary
Dealership
Limited1
ICICI
Securities
Limited1
ICICI
Securities
Holdings
Inc.1,2
ICICI
Securities
Inc.1,2
ICICI
Home
Finance
Company
Limited1
ICICI
Trusteeship
Services
Limited
ICICI
Investment
Management
Company
Limited
ICICI
Venture Funds
Management
Company
Limited
ICICI
Prudential
Life Insurance
Company
Limited
ICICI
Lombard
General
Insurance
Company
Limited3
ICICI
International
Limited4
ICICI
Bank UK
PLC4
ICICI
Bank
Canada5,6
ICICI
Prudential
Trust
Limited
ICICI
Prudential
Asset
Management
Company
Limited1
ICICI
Prudential
Pension Funds
Management
Company
Limited2
I-Process
Services
(India)
Private
Limited7
The date since
when subsidiary
was acquired
September 15,
1993
March 9,
1995
June 12,
2000
June 13,
2000
November 1,
1999
September 1,
1999
March 9,
2000
March 25,
1998
October 1,
2000
February 24,
2024
February 27,
1998
August 19,
2003
October 13,
2003
August 26,
2005
August 26,
2005
April 22,
2009
March 20,
2024
Paid-up share
capital8
1,563.4
1,616.8
728.2
571.7
12,035.3
0.5
249.9
10.0
14,406.2
4,926.9
75.1
18,357.1
15,666.1
1.0
176.5
600.0
0.5
Reserves & Surplus
16,957.4
37,310.3
(596.3)
(175.1)
21,847.1
9.2
(120.5)
2,473.9
95,676.1
124,566.5
55.5
9,789.7
14,041.4
18.8
28,651.9
(39.8)
619.2
Total assets
358,462.5
255,876.0
132.7
473.0
238,886.9
10.1
196.4
3,080.6
2,989,997.6
633,083.0
147.0
183,762.9
383,541.9
23.0
35,540.9
615.9
1,781.0
Total liabilities
(excluding capital
and reserves)
339,941.7
216,948.9
0.8
76.4
205,004.5
0.4
67.0
596.7
2,879,911.8
503,582.6
16.5
155,616.1
353,834.4
3.2
6,712.5
55.7
1,161.2
Investments
(including investment
in subsidiaries)9
315,937.7
4,197.0
94.5
Nil
3,298.4
9.1
145.9
1,299.3
2,897,361.0
489,072.4
#
57,661.6
38,746.3
20.5
28,826.2
516.3
Nil
Turnover
(Gross income from
operations)
26,289.7
50,480.0
Nil
227.0
26,407.8
2.4
139.4
926.7
432,356.4
255,941.6
52.2
11,926.1
18,863.7
15.2
33,759.0
177.8
11,145.7
Profit/(loss) before
taxation
5,855.1
22,749.6
(0.9)
26.5
7,384.5
1.4
(57.6)
108.1
9,232.3
25,551.8
6.8
2,590.2
5,906.5
6.1
26,981.1
(27.1)
149.4
Provision for taxation
1,493.4
5,807.4
#
0.9
1,661.3
(0.3)
Nil
(2.2)
708.4
6,365.9
Nil
190.0
1,571.8
1.3
6,483.8
(9.9)
Nil
Profit/(loss) after
taxation
4,361.7
16,942.2
(0.9)
25.6
5,723.2
1.1
(57.6)
110.3
8,523.9
19,185.9
6.8
2,400.2
4,334.7
4.7
20,497.3
(17.2)
149.4
Dividend paid
1,666.6
6,866.0
Nil
Nil
300.9
Nil
Nil
100.0
863.3
5,158.3
Nil
834.1
1,098.8
1.8
14,774.8
Nil
Nil
% of shareholding
100.00%
74.73%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
51.20%
51.27%
100.00%
100.00%
100.00%
50.80%
51.00%
100.00%
100.00%
# amount less than 0.1 million
Notes:
1. Financial information as per respective entity Ind AS financial statements pursuant to migration to Ind AS by these entities.
2. ICICI Securities Holdings Inc. is a wholly owned subsidiary of ICICI Securities Limited. ICICI Securities Inc. is a wholly owned subsidiary of ICICI Securities Holdings Inc.
ICICI Prudential Pension Funds Management Company Limited is a wholly owned subsidiary of ICICI Prudential Life Insurance Company Limited.
3. ICICI Lombard General Insurance Company Limited ceased to be an associate and became a subsidiary of the Bank w.e.f. February 29, 2024. Accordingly, an amount of ` 8,452.0 million has been accounted as per the
equity method as prescribed by AS 23 on 'Accounting for investments in Consolidated Financial Statements'.
4. The financial information of ICICI Bank UK PLC and ICICI International Limited has been translated into Indian Rupees at the closing rate at March 31, 2024 of 1 USD = ` 83.4050.
5. The financial information of ICICI Bank Canada is for the period January 1, 2023 to December 31, 2023, being their financial year.
6. The financial information of ICICI Bank Canada has been translated into Indian Rupees at the closing rate at December 31, 2023 of 1 CAD = ` 62.7900.
7. I-Process Services (India) Private Limited ceased to be an associate and became a subsidiary of the Bank w.e.f. March 20, 2024 and became a wholly-owned subsidiary of the Bank w.e.f. March 22, 2024. Accordingly,
an amount of ` 25.4 million has been accounted as per the equity method as prescribed by AS 23 on 'Accounting for investments in Consolidated Financial Statements'.
8. Paid-up share capital does not include share application money.
9. Investments include securities held as stock in trade.
10. Names of subsidiaries which are yet to commence operations: None
11. Names of subsidiaries which have been liquidated or sold during the year: None
STATEMENT PURSUANT TO SECTION 129
OF COMPANIES ACT, 2013
Annual Report 2023-24 | 333
Integrated Report
Statutory Reports
Financial Statements
Part "B": Associate companies and joint ventures
` in million
Name of associate companies/joint ventures
NIIT Institute
of Finance Banking
and Insurance
Training Limited
ICICI Merchant
Services Private
Limited
India
Infradebt
Limited
Arteria
Technologies
Private Limited
Falcon Tyres
Limited
1
Latest audited balance sheet date
March 31, 2023
March 31, 2023
March 31, 2024
March 31, 2023
March 31, 2016
2
Date on which the Associate or Joint Venture was associated
or acquired
August 7,
2006
December 31,
2009
November 27,
2012
May 29,
2018
December 4,
2014
3
Shares of associate companies/joint ventures held by
ICICI Group at March 31, 2024
Number of equity shares
1,900,000
75,582,000
367,361,007
9,990,000
20,445,177
Amount of investment in associate companies/joint ventures2
37.0
848.6
11,910.6
136.7
Nil
Extent of holding (%)
18.79%
19.01%
42.33%
19.98%
26.39%
4
Description of significant influence
Note 3
Note 3
Note 4
Note 3
Note 4
5
Reason of non-consolidation of the associate/joint venture
N.A.
N.A.
N.A.
N.A.
Note 5
6
Networth attributable to shareholding as per latest audited
balance sheet
30.2
1,200.6
13,672.4
66.3
N.A.
7
Profit/(loss) for the year ended March 31, 2024
i
Considered in consolidation
10.7
218.6
1,869.8
18.0
N.A.
ii Not considered in consolidation
46.2
931.5
2,547.3
72.1
N.A.
Notes:
1 The above statement has been prepared based on the principles of Accounting Standard (AS) 23 - Accounting for Investments in Associates in Consolidated Financial Statements, issued by the Institute
of Chartered Accountants of India (ICAI), and therefore does not include the companies where ICICI Group does not have any significant influence as defined under AS 23, although the group holds more
than 20.00% of total share capital in those companies.
2 Represents carrying value.
3 In terms of AS 23, issued by ICAI, ICICI Group is deemed to have significant influence through its voting power and representation on the Board of directors of the investee company.
4 In terms of AS 23, issued by ICAI, ICICI Group is deemed to have significant influence due to its holding being more than 20.00% of the voting power in the investee company.
5 The investment in Falcon Tyres Limited is temporary in nature.
6 Names of associates or joint ventures which are yet to commence operations: None
7 Names of associates or joint ventures which have been liquidated or sold during the year: None
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
Rakesh Jha
Executive Director
DIN-00042075
Sandeep Batra
Executive Director
DIN-03620913
Ajay Kumar Gupta
Executive Director
DIN-07580795
Mumbai
April 27, 2024
Anindya Banerjee
Group Chief Financial Officer
Prachiti Lalingkar
Company Secretary
Rajendra Khandelwal
Chief Accountant
STATEMENT PURSUANT TO SECTION 129
OF COMPANIES ACT, 2013
334 | Annual Report 2023-24
BASEL PILLAR 3 DISCLOSURES
at March 31, 2024
Pillar 3 disclosures at March 31, 2024 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, 2024
•
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
Annual Report 2023-24 | 335
Integrated Report
Statutory Reports
Financial Statements
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
Quarterly average of equity share capital and reserves and surplus
Average yield
Yield on interest earning assets
Book value per share
Share capital plus reserves and surplus divided by outstanding number of equity
shares
Capital (for CRAR)
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 income
Total income excluding treasury gains
Core operating profit
Profit before provisions and contingencies, excluding treasury gains
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
Effective tax rate
Tax expenses divided by profit before tax
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
Total interest earned less total interest expended divided by average interest
earning assets
Net worth
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 and off-balance sheet exposures
REGISTERED OFFICE
CORPORATE OFFICE
ICICI Bank Tower,
Near Chakli Circle, Old Padra Road,
Vadodara 390 007
CIN: L65190GJ1994PLC021012
ICICI Bank Towers,
Bandra-Kurla Complex,
Mumbai 400 051
STATUTORY AUDITORS
M S K A & Associates
Chartered Accountants
602, Floor 6, Raheja Titanium,
Western Express Highway,
Geetanjali Railway Colony,
Ram Nagar, Goregaon East,
Mumbai 400 063
KKC & Associates LLP
Chartered Accountants
(formerly Khimji Kunverji & Co LLP)
Sunshine Tower, Level 19,
Senapati Bapat Marg,
Elphinstone Road,
Mumbai 400 013
REGISTRAR AND TRANSFER AGENTS
Equity Shares:
KFin Technologies Limited
Unit : ICICI Bank Limited,
Selenium Building, Tower-B,
Plot No. 31 & 32, Financial District,
Nanakramguda, Serlingampally,
Hyderabad 500 032, Rangareddy, Telangana
Bonds/Debentures:
3i Infotech Limited
International Infotech Park,
Tower # 5, 3rd Floor,
Vashi Railway Station Complex,
Vashi, Navi Mumbai 400 703
OUR APPROACH TO REPORTING
ABOUT THIS REPORT
This is ICICI Bank’s Annual Report for the year
ended March 31, 2024. It has been prepared
in accordance with Indian regulatory reporting
requirements as well as the principles of the
International Integrated Reporting Framework.
Through this report, the Bank aims to provide
its stakeholders a comprehensive view of its
operations, performance, its 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.
REPORTING BOUNDARY
The non-financial information in the integrated
report largely covers the operations of ICICI
Bank Limited.
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, 2023 to March 31, 2024.
SAFE HARBOUR
Certain statements in this release 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 harbor' 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, or which affect
global or Indian economic conditions, increase
in nonperforming loans, unanticipated changes
in interest rates, foreign exchange rates, equity
prices or other rates or prices, our growth and
expansion in business, the adequacy of our
allowance for credit losses, the actual growth
in demand for banking products and services,
investment income, cash flow projections, our
exposure to market risks, changes in India’s
sovereign rating, as well as other risks detailed
in the reports filed by us with the United States
Securities and Exchange Commission. Any
forward-looking statements contained herein
are based on assumptions that we believe to
be reasonable as of the date of this release.
ICICI Bank undertakes no obligation to update
forward-looking statements to reflect events or
circumstances after the date thereof. Additional
risks that could affect our future operating
results are more fully described in our filings
with the United States Securities and Exchange
Commission. These filings are available at
www.sec.gov
Digiverse
a one-of-its-kind BankTech space
ICICI Bank launched Digiverse, a futuristic banking space, at its Service Centre in Bandra Kurla
Complex, Mumbai. At Digiverse, customers and even non-customers can explore ICICI Bank’s rich
history and legacy, and avail of the Bank’s products and services digitally.
24/7 Access
Operates fully on
green energy
Relationship Manager
(RM) available during
banking hours
A video calling facility
to connect customer
with RM even beyond
banking hours
ICICI Bank Limited, ICICI Bank Towers, Bandra-Kurla Complex,
Mumbai 400 051 | www.icicibank.com
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