Notes to accounts final

NOTES TO ACCOUNTS
October 9, 2015
Apurva Gautam (409)
Charanpreet Singh(424)
Nitin Joshi (452)
Sandeep Sharma (467)
Shashank Shekhar (473)
Nidhi Dwivedi (448)
S Laxmipathi (464)
Venkata Chaitanya (486)
Vineeta Chauhan (488)
Vipul Bhatia (494)
Presented By Group 5 and 6

2
Agenda
EPS
Business/Information ratios
Information about Business and Geographical
segments
Capital adequacy ratio
Maturity pattern
Liquidity coverage ratio

3
Agenda
Preference shares
Employee Stock Option Scheme (ESOS)
Investment and CBLO transactions
Subordinated Debt
NPA and Provisions
Asset Health Management

4
Agenda
Concentration
Provisions and Contingencies
Priority and Non-Priority sector lending
Exposure to sensitive sectors
Risk Category-wise country exposure
Bancassurance

5
Agenda
Provision for Income Tax
Deferred Tax
Penalties/Fines Imposed
Other Notes

6
Agenda
EPS
segments
Maturity pattern

Earnings per Share: EPS
7
2013 2014 2015
Basic
No. of Outstanding
Shares
1,153,066,422 1,154,317,577 5,785,726,485
Basic earnings per
share 72.2 84.99 19.32
Diluted
No. of Outstanding
Shares
1,157,455,610 1,158,893,790 5,842,092,456
Diluted earnings per
share
71.93 84.65 19.13

8
Agenda
EPS
segments
Maturity pattern

Business / Information ratios
9
2013 2014 2015
Interest income
to working funds 8.17% 8.00% 8.19%
Non-interest
income to
working funds 1.70% 1.89% 2.03%
Operating profit
to working funds 2.69% 3.00% 3.29%
Return on assets 1.70% 1.78% 1.86%
Net profit per
employee 1.4 1.4 1.6
Business per
employee 73.5 74.7 83.2

10
Agenda
EPS
segments
Maturity pattern

Capital Adequacy ratio
11
 Basel III requires Bank to maintain a minimum
capital to risk-weighted assets ratio (CRAR) of
9.0% with minimum CET1 CRAR of 5.5% and
minimum Tier-1 CRAR of 7.0%.
 The following table sets forth computation of
capital adequacy as per Basel III framework.

12
Agenda
EPS
segments
Maturity pattern

Liquidity Coverage ratio
 BCBS had proposed LCR in order to ensure that a
bank has an adequate stock of unencumbered
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.
 The Bank during the three months ended March
31, 2015 maintained average HQLA (after haircut)
of Rs. 569,153.4 million against the average
liquidity requirement of Rs. 336,609.6 million at
minimum LCR requirement of 60%.
13

14
Agenda
EPS
segments
Maturity pattern

Information about Business and
Geographical segments
 Reported business – Retail, Wholesale, Treasury
and other banking
 Geographical segments
 Domestic operations -comprise branches in India.
 Foreign operations -comprise branches outside India and
offshore banking unit in India.
Data from Annual report of year ending 2015 and 2014

16
Agenda
EPS
segments
Maturity pattern

Maturity Pattern of Assets &
Liabilities
 Mismatch in the maturity patterns of assets and
liabilities- may result in liquidity risk
 As per RBI guidelines, commercial banks are to
distribute the outflows/inflows in different residual
maturity period known as time buckets.
 The net cumulative negative mismatches during
the Next day, 2-7 days, 8-14 days and 15-28 days
buckets should not exceed 5 %, 10%, 15 % & 20 %
of the cumulative cash outflows in the respective
time buckets in order to recognize the cumulative
impact on liquidity.

Liabilities (contd.)
Data from Annual report of year ending 2015

Liabilities
(contd.)
 In case of negative mismatch to satisfy funding
needs a bank should
 Dispose of liquid assets
 Increase short term borrowings
 Decrease the holding of less liquid assets
 Increase capital funds
 In case of positive mismatch
 Excess liquidity can be deployed in money market
instruments, creating new assets and invest in
SWAPs.

20
Agenda
Preference shares
Subordinated Debt
NPA and Provisions

Preference Shares
 Govt. securities amounting to Rs 3,088.6 mn at
March 31, 2015 have been earmarked against
redemption of preference shares issued by the
Bank, which fall due for redemption on April 20,
2018, as per the original terms of the issue.
 March 31, 2014: Rs. 2,970.9 million
 March 31, 2013: Rs. 2,749.9 million

22
Agenda
Preference shares
Subordinated Debt
NPA and Provisions

 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
 Options vest 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.

 Once employees exercise their options, the
company is allowed to take a tax deduction equal
to the difference between the strike price and the
market price as compensation expense.

25
Agenda
Preference shares
Subordinated Debt
NPA and Provisions

Subordinated Debt
 During the year 2015 and 2014 the Bank has not
raised subordinated debt qualifying for Tier-2
capital
 During the year ending 2013, the Bank raised
subordinated debt qualifying for Tier II capital
amounting to Rs. 38,000 mn.
 Increase in branch network and technology
initiatives.
 Used for growth capital, acquisitions or leveraged
buyouts

27
Agenda
Preference shares
Subordinated Debt
NPA and Provisions

Investments
Particulars 31.03.2015 31.03.2014
A. Investments in India (net of provisions)
Government Securities 1,056,109 951,821
Shares 23,197 24,018
Debentures and bonds 115,823 121,204
Subsidiaries and/or joint ventures 65,483 65,483
Others 526,689 533,636
Sub-total (A) 1,787,300 1,696,161
B. Investments outside India (net of provisions)
Government Securities 17,824 7,096
Subsidiaries/ joint ventures abroad 49,803 59,553
Equity Shares, Bonds and Certificate of Deposits 10,873 7,408
Sub-total (B) 78,500 74,057
Total Investments (A+B) 1,865,800 1,770,218
28
SLR Investments Non-SLR Investments
In Rs. Million

Non-SLR Investments
Particulars 31.03.2015 31.03.2014
Issuer
PSUs 16,011.7 27,510.9
FIs 37,028.6 25,421.2
Banks 121,737.0 139,816.8
Private Corporates 97,754.7 107,977.7
Subsidiaries 117,751.2 127,746.7
Others 427,259.2 405,366.0
Provision held towards depreciation (25,674.7) (22,537.6)
Total 791,867.7 811,301.7
29
In Rs. Million

HTM Securities
30
 Held to Maturity (HTM) Securities
 A held to maturity security is a debt or equity
security that is purchased with the intention of
holding the investment to maturity.
 Sales and Transfers of Securities to/from HTM
Category
 During FY2015, the value of sales and transfers of
securities from HTM category exceeded 5% of the
book value of the investments held in HTM
category at the beginning of the year
 At the end of the year, outstanding balance, market
value of investments held in the HTM category was
Rs. 1,271,386.6 million

CBLO Transactions
31
 Collateralised Borrowing and Lending Obligation
(CBLO) is a discounted money market
instrument, established by The Clearing
Corporation of India Limited (CCIL) and approved
by RBI, which involves secured borrowings and
lending transactions.
Particulars 31.03.2015 31.03.2014
O/S Borrowing under CBLO - 11,496.9
O/S Lending under CBLO - -
In Rs. Million

32
Agenda
Preference shares
Subordinated Debt
NPA and Provisions

NPA and Provisions
 Derivatives
 Exchange Traded Interest rate derivatives and
Currency Options
 Forward rate agreement (FRA)/ Interest rate swaps
(IRS)
 Non – Performing Assets
 Provision on standard assets
 Rs3847.9 million & Rs 2487.7 million in FY2015 &
FY2014
 Incremental provision towards UFCE – Rs1750.0
million
 Provision Coverage ratio – 58.6% (FY2015) &
68.6%(FY2014)
33

Derivatives
 Net Loss for FY2015 & FY2014 is Rs22.0 million
 Rupee denominated derivative are marked to
market with internal models
 Net Overnight Open Position at March 31,2015 is
Rs1193.1 million (133%)
 Bank as nil exposure on credit derivative
instruments
 Deposits with structured returns linked to interest,
forex, credit or equity bench marks
 Net open notional position – nil for FY2015 &
FY2014
 Net Gain – Rs1.4 million & Rs 6.2 million in FY2015
& FY2014
34

Non – Performing Assets
 Loan Concentration
 Retail Finance – 40.8% & 43.5%
 Asset Heavy and systematic problems – 33.8 % &
32.7%
36

38
Agenda
Preference shares
Subordinated Debt
NPA and Provisions

Asset Health management
 Securitisation
 The Bank has not securitised any loans as an
originator during FY 2015
 Net gain on securitisation Rs. 148 million
 Financial assets transferred to Securitisation
Company and Reconstruction Company
39

Asset Health management
 NPA’s purchased/sold excluding those sold to
SC/RC
 Sale of NPA
40

42
Agenda
Concentration
Bancassurance

43
Agenda
Deferred Tax
Other Notes

44
Agenda
Concentration
Bancassurance

Concentration
45
At March 31, 2015 At March 31, 2014
Concentration of deposits
Total deposits of 20 largest depositors 232,603.9 242,537.6
As a percentage of total deposits 6.43% 7.31%
Concentration of advance
Total advances to 20 largest borrowers 1,337,961.7 1,154,740.4
As a percentage of total advances 16.58% 15.73%
Concentration of exposure
Total exposure to 20 largest borrowers/customers 1,354,445.8 1,190,611.6
As a percentage of total exposure 15.87% 15.21%
Concentration to NPA
Total exposure to top four NPA accounts 62,016.3 17,486.9

46
Agenda
Concentration
Bancassurance

Provisions and contingencies
47
Particulars At March 31, 2015 At March 31, 2014
Provisions for depreciation of investments 2979.2 711.2
Provision towards non-performing and other
assets1
31412.7 22522.7
Provision towards income tax
Current 48591.4 38395.0
Deferred (2195.7) 3131.9
Provision towards wealth tax 50.0 50.0
Other provisions and contingencies2 4607.9 3030.2
Total provisions and contingencies 85445.5 67841.0

48
Agenda
Concentration
Bancassurance

Priority sector
Sector Wise Advances (in million INR)
Sr.No. Sector
Outstanding
advances
(31st mar 2015)
Gross NPA
(31st mar 2015)
% of Gross NPA
to Total
advances in that
sector (31st mar
2015)
% of Gross NPA
to Total
advances in
that sector
(31st mar 2014)
A PRIORITY SECTOR
1 Agriculture and allied activities 2,37,737.60 7,051.40 2.97% 3.62%
2
Advances to industries sector eligible as priority
sector lending 1,14,316.80 3,660.30 3.20% 3.40%
3 Services, of which: 1,18,499.00 1,963.10 1.66% 1.35%
Transport operators 61,484.70 1,273.50 2.07% 1.47%
Wholesale trade 14,487.10 487.70 3.37% -
4 Personal loans, of which: 3,01,750.10 3,818.10 1.27% 1.28%
Housing 2,17,485.40 2,571.40 1.18% 1.35%
Vehicle Loan 78,868.50 967.20 1.23% 1.06%
Sub-total (A) 7,72,303.50 16,492.90 2.14% 2.29%
49

Priority sector
50
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Agriculture and allied activities Industrial sector eligible as
priority sector
Services Personal Loan
Outstanding advance (INR million)
As at 31st March 2015 Outstanding advance As at 31st March 2014 Outstanding advance
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Agriculture and allied activities Industrial sector eligible as
priority sector
Services Personal Loan
NPA (%)
As at 31st March 2015 Outstanding advance As at 31st March 2015 Gross NPA

Non – Priority sector
51
Sector Wise Advances (in million INR)
Sr.No. Sector
Outstanding
advances
(31st mar 2015)
Gross NPA
(31st mar 2015)
% of Gross NPA
to Total
advances in that
sector (31st mar
2015)
% of Gross NPA
to Total
advances in
that sector
(31st mar 2014)
B NON PRIORITY SECTOR
1 Agriculture and allied activities NIL NIL NIL NIL
2 Advances to industries sector, of which: 15,32,182.60 73,115.30 4.77% 3.01%
Infrastructure 4,92,067.90 17,174.30 3.49% 1.71%
Basic metal and metal products 3,11,448.40 11,462.20 3.68% 1.26%
3 Services, of which: 8,51,479.80 50,175.60 5.89% 3.80%
Commercial real estate 2,64,316.40 4,914.10 1.86% 2.10%
Wholesale trade 1,28,156.70 4,299.10 3.35% 4.88%
4 Personal loans of which: 8,33,654.30 11,163.10 1.34% 2.97%
Housing 5,75,848.80 3,488.50 0.61% 0.76%
Sub-total (B) 32,17,316.70 1,34,454.00 4.18% 3.20%
Total(A+B) 39,89,620.30 1,50,946.90 3.78% 3.03%

Non – Priority sector
52
0
500,000
1,000,000
1,500,000
2,000,000
Industrial sector Services Personal Loan
Outstanding Advances (INR million)
As at 31st March 2015 Outstanding advance As at 31st March 2014 Outstanding advance
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
Industrial sector Services Personal Loan
NPA (%)
Mar-15 Gross NPA Mar-14 Gross NPA

53
Agenda
Concentration
Bancassurance

54
Mar-15 Mar-14 Mar-13
Exposure to real estate 1,426,398.30 1,163,907.70 964,312.80
0
500,000
1,000,000
1,500,000
Exposure to real estate
Exposure to capital market 182,780.70 172,736.90 192,454.40
160,000
165,000
170,000
175,000
180,000
185,000
190,000
195,000
Exposure to capital market
INR Million
INR Million

55
88.6%
87.1%
83.4%
80%
81%
82%
83%
84%
85%
86%
87%
88%
89%
90%
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
Exposure to capital market Exposure to real estate % real estate
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Comparison with SBI
Exposure CM - SBI Exposure CM - ICICI Exposure Real estate - SBI Exposure Real estate - ICICI
INR Million
INR Million

Type CAGR
Exposure CM - SBI 37%
Exposure CM - ICICI -3%
Exposure Real estate - SBI 10%
Exposure Real estate - ICICI 22%
56
-10%
0%
10%
20%
30%
40%
Exposure CAGR
Exposure CM - SBI Exposure CM - ICICI Exposure Real estate - SBI Exposure Real estate - ICICI

57
Agenda
Concentration
Bancassurance

Risk category-wise country exposure
 Funded country exposure (net) of the Bank as a
percentage of total funded assets:
 No exposure in moderately high, high and very
high category
 Provisions held only because the net exposure
for these countries exceeded 1.0% of total funded
assets (RBI guidelines)
58
Country At March 2015 At March 2014
Singapore 1.31% 1.45%
USA 2.53% 0.83%
Provision kept 345.0 mn 135.0 mn

59
Agenda
Concentration
Bancassurance

Bancassurance
60
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
March 31, 2015 March 31, 2014 March 31, 2013
Income (Rs. Million)
Life insurance policies
Non-life insurance policies
Mutual fund/collective
investment scheme products
 141% rise in income from Mutual fund products
since FY 2013
 67% rise in income from Insurance policies since
FY 2013
 45% rise in income from Non- Insurance policies
since FY 2013

61
Agenda
Deferred Tax
Other Notes

Provision for income tax
 ICICI Bank has a comprehensive system of
maintenance of information and documents
 As per transfer pricing legislation of IT Act
 all transactions with international related parties
and specified transactions with domestic related
parties are primarily at arm’s length
 IT legislation does not have material impact on
the financial statements.
62
Rs. Million
At March 31,
2015
At March 31,
2014
At March 31,
2013
Provision for income tax 46395.7 41526.7 30642.2

63
Agenda
Deferred Tax
Other Notes

Deferred Tax
64
Rs Million
At March 31, 2015 At March 31, 2014
Deferred tax asset
Provision for bad and doubtful debts 37860.0 26621.5
Capital loss 50.50 49.60
Others 3,118.10 2,204.80
Total deferred tax asset 41,028.60 29,875.90
Deferred tax liability
Special reserve deduction 21,273.00 17,234.90
Depreciation on fixed assets 5,270.70 5,172.30
Others 4.90 -
Total deferred tax liability 26,548.60 22,407.30
Total net deferred tax asset/(liability) 14,480.00 7,468.60

65
Agenda
Deferred Tax
Other Notes

Penalties/Fines imposed
 Penalty by RBI – Rs. 10.4 million for FY 2015
 Rs. 5.0 million for Non-compliance with (KYC)/
(AML). The Bank has paid the penalty to RBI
 Rs. 4.0 million for flouting banking norms while
doing business with Deccan Chronicle Holdings
Ltd
 A penalty of Rs. 1.4 million was imposed on the
Bank in February 2015 by the FIU India and the
case is underway
66

67
Agenda
Deferred Tax
Other Notes

Other notes
March 31,
2015
March 31,
2014
March 31,
2013
Pending at the beginning
of the year 3,324 4,586 3837
Received during the year 2,01,676 2,18,839 101408
Redressed during the
year 2,02,113 2,20,101 102617
Pending at the end of the
year 2,887 3,324 2628
68
 Complaints
 FITL
 For cases prior to 2008 guideline which have not been
repaid
 With the approval of the RBI ICICI Bank debited its
reserves by Rs. 9,291.6 million
 Unsecured advances against intangible assets
 March 15, 14, 13 – NILL

Notes to accounts final

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