ANALYSIS AND INTERPRETATION OF ANNUAL REPORT OF A COMPANY

FROM BANKING INDUSTRY

ICICI BANK
REFERENCE: ANNUAL REPORT 2012-13




















INDEX

1. ABOUT ICICI BANK

2. CONTENTS OF THE ANNUAL REPORT

3. ANALYSIS

4. FACTORS INFLUENCING COMPANYS FINANCIAL PERFORMANCE

5. PRIMARY ASSETS HELD BY THE COMPANY

6. FUTURE PROSPECTS OF THE COMPANY

7. KEY AREAS IN CORPORATE SOCIAL RESPONSIBILITY OF THE COMPANY













ICICI BANK khayaal aapka

ICICI Bank was established by the Industrial Credit and Investment Corporation of India, an
Indian financial institution, as a wholly owned subsidiary in 1994.
In 1998 ICICI Bank made its first IPO .It acquired Bank of Madurai in the year 2001.In 2002
ICICI Ltd, the parent and its subsidiaries merged with ICICI Bank.
ICICI Bank is an Indian multinational bank and financial services company, headquartered
in Mumbai. Based on 2013 information, it is the second largest bank in India by assets and third
largest by market capitalization. It offers a wide range of banking products and financial services
to corporate and retail customers through a variety of delivery channels and through its
specialized subsidiaries in the areas of:
Investment Banking
Life and Non-Life insurance
Venture Capital and
Asset Management.
The Bank has a network of 3,350 branches and 10,486 ATM's in India, and has a presence in 19
countries.
ICICI Bank is one of the Big Four banks of India ranking as under:
1
st
: State Bank of India
2
nd
: ICICI Bank Limited
3
rd
: Punjab National Bank
4
th
: Canara Bank
The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh,
Thailand, Malaysia and Indonesia. The company's UK subsidiary has established branches in
Belgium and Germany.





CONTENTS OF ANNUAL REPORT

An annual report is a comprehensive report on a company's activities throughout the preceding
year. Annual reports are intended to give shareholders and other interested people information
about the company's activities and financial performance.
The following are the main contents of the Annual Report of ICICI Bank:
1. Message from Chairman and Managing Director
Chairman K.V. Kamath
Managing Director & CEO Chanda Kocchar

2. Details of Board of Directors and Board Committees

3. Directors Report

4. Auditors Certificate of Corporate Governance

Auditor S R Batliboi & Co., LLP

5. Business Overview

6. Management discussion and analysis

7. Key Financial Indicators

8. Financials (Including Auditors Report)

9. Notice of AGM (Including Attendance Slip and Proxy Form)





ANALYSIS OF PROFIT AND LOSS ACCOUNT
(Rs. in 100 Crore)
PARTICULARS F.Y. - 2013 F.Y. - 2012 % CHANGE

Interest Income 400.75 335.42 19.5%
Interest Expense 262.09 228.08 14.9%
Net Interest Income 138.66 107.34 29.2%
Non Interest Income
-Fee Income 69.01 67.07 2.9%
-Treasury Income 4.95 (0.13) -
-Dividend from subsidiaries 9.12 7.36 23.9%
-Other Income (Including Lease
Income)
0.38 0.72 (47.2%)
Operating Income 222.12 182.36 21.8%
Operating Expenses (Include lease
depreciation and Direct Marketing
Expenses)
90.13 78.50 14.8%
Operating profit 131.99 103.86 27.1%
Provisions (net of write-backs) 18.03 15.83 13.9%
Profit before Tax 113.96 88.03 29.5%
Tax (including deferred tax) 30.71 23.38 31.4%
Profit after Tax 83.25 64.65 28.8%

Key Ratios
2013 2012
Return on Average Equity (%) 12.94 11.09
Return on Average Assets (%) 1.66 1.44
Earnings per Share 72.20 56.11

OBSERVATION
Profit after tax increased by 28.8% in FY 2012-13 mainly due to 29.9% increase in net interest
income and 11.3% increase in non-interest income. On the other hand non-interest expenses saw
an increase of 14.8%. And since the Profit after Tax increased by 28.8%, the Return on Average
Equity and Return on Average Assets increased by 1.85% and 0.22% respectively. Also the EPS
of the shareholders marked a remarkable increase.
ANALYSIS OF ASSETS
(Rs. in 100 Crore)
ASSETS AS AT 31
ST

MARCH 2013
AS AT 31
ST

MARCH 2012
% CHANGE

Cash and Bank Balances 414.18 362.29 14.3%
Investments 1713.94 1595.60 7.4%
- Govt. & other Approved
Investments
923.76 869.48 6.2%
- RIDF and other related
investments
201.98 181.03 11.6%
- Equity Investments in
subsidiaries
123.22 124.53 (1.1%)
- Other Investments 464.98 420.56 10.6%
Advances 2902.49 2537.28 14.4%
- Domestic 2168.92 1843.25 17.7%
- Overseas branches 733.57 694.03 5.7%
Fixed Assets (including leased
assets)
46.47 46.15 0.7%
Other Assets 290.87 349.37 (16.7%)
Total Assets 5367.95 4890.69 9.8%

*RIDF Rural Infrastructure Development Fund

OBSERVATION
- Total assets increased by 9.8% primarily due to an increase in advances and investments.
- Net advances increased by 14.4% whereas Investments increased by 7.4%.
- Also Cash and Bank Balances increased remarkably by 14.3%.
- This shows the good liquidity position of the Bank.
- Also there was not much increase in Government and other Approved Investments since
Banks have to maintain a specific, currently 23% of their net demand and time liabilities
by way of liquid assets like cash, gold or other approved securities.





ANALYSIS OF LIABILITIES
(Rs. in 100 Crore)
LIABILITIES AS AT 31
ST

MARCH 2013
AS AT 31
ST

MARCH 2012
% CHANGE

Equity Share Capital 11.54 11.53 0.1%
Reserves 655.52 592.52 10.6%
Deposits 2926.14 2555.00 14.5%
- Savings account deposits 856.51 760.46 12.6%
- Current account deposits 369.26 349.73 5.6%
- Term deposits 1700.37 1444.81 17.7%
Borrowings 1053.29 1022.00 3.1%
- Domestic 402.98 377.38 6.8%
- Overseas Branches 650.31 644.62 0.9%
Subordinated Debt 396.62 376.15 5.4%
- Domestic 378.21 358.90 5.4%
- Overseas Branches 18.41 17.25 6.7%
Preference Share Capital 3.50 3.50 0.0%
Other liabilities 321.34 329.99 (2.6%)
Total Liabilities 5367.95 4890.69 9.8%

*Subordinate Debt Debt which ranks after other debts should a company fall into liquidation or
bankruptcy because debt providers have subordinate status in relationship to Normal debt.
OBSERVATION
- Increase in share capital indicates that Capital has been issued during the year.
- Total Liabilities have increased by 9.8% mainly due to increase in Deposits by 14.5%
and Subordinate Debt by 5.4%.
- Customers term deposit has increased remarkably by 17.7% during the year which is
beneficial to the Bank.





FACTORS INFLUENCING THE PERFORMANCE OF THE COMPANY

In the financial year 2012-13, ICICI Bank followed a strategy of balancing growth, profitability
and risk management. Through this approach, they achieved several key milestones, thereby
further strengthening their platform for profitable growth. The year witnessed several challenges
in the operating and business environment. While Indias long-term economic fundamentals and
growth potential are strong, the current challenges have had implications for business sentiment,
corporate profitability and banking sector growth & asset quality. Despite these developments,
the strategy of balancing growth, profitability and risk management has enabled ICICI Bank to
make continued progress.

In face of these challenges some of the key achievements of the Bank during the fiscal year 2013
are as follows:
1. It was the first full year where ICICI Bank achieved full year net interest margins of
above 3.0%.

2. The trends in asset quality for the banking sector have not been encouraging in financial
year 2012-2013. The banking sector has seen significant additions to non-performing
assets (NPA) and restructured loans during the year. Despite these systemic trends, ICICI
Banks asset quality continued to remain stable.
March 31, 2013 March 31, 2012
NPA ratio 0.64% 0.62%.

3. The combined effect of improvement in profitability parameters and growth in business
volumes is reflected through the 29% growth in ICICI Banks profit after Tax to Rs. 83.25
billion in the financial year 2012-13.

4. The Banks Return on Assets has increased to 1.66%.

5. The return on equity also improved in the financial year 2012-13:

March 31, 2013 March 31, 2012
Return on Equity 14.7% 13%

6. During the year, they continued to focus on enhancing their customer proposition through
a combination of physical & technological platforms and innovative product offerings.

7. In financial year 2012-2013, 348 branches and 1,475 ATMs were added to their network,
taking the branch and ATM network to 3,100 and 10,481 respectively at March 31, 2013.

8. They also focused on increasing convenience for customers by expanding their
technology-based offerings, including 24x7 electronic branches and tab banking.

9. They introduced innovative product features such as the MySavings Rewards
programme and the iWish flexible recurring deposit product.

10. With over 2.0 million fans at March 31, 2013, the Facebook page of ICICI Bank not only
had the largest fan base, but also the highest engagement rates in comparison to other
Indian banks.

11. The ICICI Groups current activities in regard to protective role in nation building range
from financial inclusion to working in the areas of education, healthcare and sustainable
livelihoods.

12. During fiscal 2013, ICICI Bank substantially expanded its presence in rural markets
through a combination of branches and business correspondent channels.

13. ICICI Group established 152 rural branches (including 127 low cost branches in
unbanked villages) which represents over 40% of the total branch additions in the current
financial year.

14. As at 31
st
March 2013, ICICI Bank has about 14.9 million financial inclusion accounts
with over 13,500 villages under the coverage of the financial inclusion plan.

15. The number of customer complaints has also reduced from 3837 at the beginning of the
year to 2628 at the end of the year.






PRIMARY ASSETS HELD BY THE COMPANY

Sr.
No
Name of Asset Current Year Previous Year
1 Cash and balances with Reserve Bank of India 190,527,309 204,612,935
i) Cash in Hand ((including foreign
currency notes)
46,774,823 46,696,165
ii) Balances with Reserve Bank of India
in current accounts
143,752,486 157,916,770
2 Balances with Bank and Money at Call and
Short Notice

223,647,879 157,680,199
IN INDIA
i) Balances with Bank
a) In Current Account 3,462,734 2,828,505
b) In other deposit account 36,008,368 36,822,361
ii) Money at call and Short Notice
a) With Banks 53,000,000 5,087,500
b) With other institutions --- 4,568,688
OUTSIDE INDIA
i) In Current Accounts 19,249,648 23,470,339
ii) In other Deposit Accounts 87,128,213 35,029,254
iii) Money at call and Short Notice 24,798,916 49,873,552
3 Investments Rs. 1,713,935,993 Rs. 1,595,600,430
IN INDIA
i) Government securities 923,762,915 869,480,205
ii) Other approved securities - 4,250
iii) Shares (includes equity and
preference shares)
25,050,852 22,922,636
iv) Debentures and bonds 174,775,171 195,135,236
v) Subsidiaries and/or joint ventures 65,482,766 64,796,927
vi) Others (commercial paper, mutual
fund units, pass through
certificates,security receipts,
certificate of deposits, Rural
Infrastructure Development Fund
deposits and other related
investments)
447,127,306 361,872,334
OUTSIDE INDIA
i) Government securities 6,574,742 4,399,569
ii) Subsidiaries and/or joint ventures 62,475,493 66,864,257
abroad (includes equity and
preference shares)
iii) Others (equity shares, bonds and
certificate of deposits)
8,686,748 10,125,016
4 Advances 2,902,494,351 2,537,276,579
i) Bills purchased and discounted 61,532,333 48,693,815
ii) Cash credits, overdrafts and loans
repayable on demand
451,092,674 334,851,948
iii) Term loans 2,389,869,344 2,153,730,816
5 Fixed Assets 46,470,587 46,146,870
i) Premises 31,279,021 31,709,026
ii) Other fixed assets (including
furniture and fixtures)
12,843,252 12,043,515
iii) Assets given on lease 2,348,314 2,394,329
6 Other Assets Rs. 290,870,692 Rs. 349,370,958
i) Inter-office adjustments (net) - -
ii) Interest accrued 44,902,010 42,175,150
iii) Tax paid in advance/tax deducted at
source (net)
36,098,478 34,161,502
iv) Stationery and stamps 10,045 10,308
v) Non-banking assets acquired in
satisfaction of claims
576,833 600,575
vi) Advances for capital assets 1,154,106 1,344,889
vii) Deposits 10,868,027 10,669,329
viii) Deferred Tax asset (net) 24,793,018 25,453,167
ix) Others 172,468,175 234,956,038
TOTAL ASSETS 5,367,946,811 4,890,687,971