Académique Documents
Professionnel Documents
Culture Documents
6.38
32.50%
3%
1.80%
4%
10.33
2002
2003
2004
2005
2006
8.46
32.50%
11.20
32.50%
14.85
32.50%
19.67
32.50%
26.06
32.50%
2.07
2.75
3.64
4.82
6.39
11%
3%
0.42
11%
3%
0.72
11%
3%
1.12
11%
3%
1.65
11%
3%
2.36
0.23
0.30
0.40
0.53
0.70
1.80%
4%
16.68
1.80%
4%
25.09
1.80%
4%
36.23
1.80%
4%
50.99
Annual growth rate assumed to be 32.5%; given to vary between 30-35% in Case
1.80%
4%
70.55
Year
Base year
2002
2003
2004
2005
2006
1.81
27.50%
2.31
27.50%
2.94
27.50%
3.75
27.50%
4.78
27.50%
6.10
27.50%
20%
16%
3.50%
2.50%
12.79
0.50
0.63
0.81
1.03
1.31
20%
16%
0.39
20%
16%
0.52
20%
16%
0.68
20%
16%
0.88
20%
16%
1.15
0.10
0.13
0.16
0.21
0.26
3.50%
2.50%
16.10
3.50%
2.50%
21.22
3.50%
2.50%
27.76
3.50%
2.50%
36.09
Annual growth rate assumed to be 27.5%; given to vary between 25-30% in Case
3.50%
2.50%
46.71
Year
Base year
2002
2003
2004
2005
2006
Credit Cards
Market Size (mn cards)
Annual Growth Rate
ICICI's Current Share
Incremental Size (mn)
Share in Incremental Size
Number of ICICI cards (mn)
Income per card ($)
Contribution ($ mn)
Total Contribution ($ mn)
5.00
22.50%
5%
15%
31.91
7.98
31.10
6.13
22.50%
5%
1.13
15%
0.42
31.91
13.36
46.14
7.50
22.50%
5%
1.38
15%
0.63
31.91
19.96
66.27
9.19
22.50%
5%
1.69
15%
0.88
31.91
28.04
92.02
11.26
22.50%
5%
2.07
15%
1.19
31.91
37.94
125.01
13.79
22.50%
5%
2.53
15%
1.57
31.91
50.06
167.32
Assumption:
Annual growth rate assumed to be 22.5%; given to vary between 20-25% in Case
Opportunity: Retail
20 million NRIs/PIOs worldwide (2001)
Growing at 10% over the next 5-10 years
10% of the worlds remittances are sent to India ($15 bn out of $150 bn annually)
Public sector banks enjoy trust but lack technology and product innovation
Foreign banks provide services to HNI customers but lack deep branch network in India
Nonbank players are major competitors
Opportunities to cross-sell products like housing loans
Diversification
Opportunity: Corporates
International acquisitions and investments (600 subsidiaries of Indian companies in UK)
Shift in revenue sources: from India to international sources
Leverage existing relationships following existing (strong) network of corporate customers
NRI deposits
Year
2001
2002
2003
2004
2005
2006
Total NRI
Deposits
23.07
23.80
24.56
25.34
26.14
26.97
ICICI's
share
0.50%
1.50%
2.00%
2.50%
3.00%
3.50%
Income
($mn)
0.72
2.23
3.07
3.96
4.90
5.90
Assumptions:
1. Growth rate of NRI desposits (overall) =3%
2. Margins are between 0.5-0.75% (assumed 0.625%)
3. ICICIs share increases to 3.5% in 5 years
2001
2002
2003
2004
2005
2006
15.00
16.50
18.15
19.97
21.96
24.16
10%
10%
10%
10%
10%
10%
3%
5%
7%
9%
10%
250
250
250
250
250
1.98
3.63
5.59
7.91
9.66
12.50
12.50
12.50
12.50
12.50
24.75
45.38
69.88
98.83
120.79
PV
NRI Deposits
Remittances
0.00
Income dependent on
international banks
acceptance of
outsourcing (exchange
rate risk)
Banks historically have
in-house operations
Thrust Areas
Remittances
It is a lucrative market as seen from the PV of cash flows
We can concentrate on US and GCC for starting off its remittances offering
In GCC, especially competency is needed in terms of physical presence and branches from where money can be
deposited to be transferred to India
ICICI can look to partner with Gulf companies for money collection on that side and leverage its domestic circuit for
delivery here.
NRI Deposits
With a growing India diaspora (10%) and a high GDP growth in India, higher interest rates in India (12.5%) as
compared to the low interest rates in the west (2-3%), the market can be captured quickly
Further, with ICICIs core competency in technology, it can make platforms for tech-savvy white collared NRIs and
workers to transfer money electronically into their ICICI INR accounts
NRI Deposits have a huge potential and can act as a cheap source of funding by (benefit of 0.5% to other sources)
the booming domestic loan market.
Corporate Finance
With large volume of trade with US and UK, corporate banking is another lucrative option to be looked at. This is true
for the non-oil sector.
Thank You