Icici Bank Annual Report 2015 16 PDF
Icici Bank Annual Report 2015 16 PDF
Icici Bank Annual Report 2015 16 PDF
through technology
OVE
ON THE M
2015 - 2016
L
AT OUR P
L ACE
P
AT YOUR
ACE
CONTENTS
1 Leadership through Technology
2 ICICI Bank at a Glance
4 Financial Highlights
6 Message from the Chairman
8 Message from the Managing Director & CEO
10 Board and Management
11 Messages from Executive Directors
12 Banking on the Move
16 Banking at Your Place
18 Banking at Our Place
20 Promoting Inclusive Growth
24 Awards
25 Directors Report
77 Auditors Certificate on Corporate Governance
78 Business Overview
92 Managements Discussion and Analysis
116 Key Financial Indicators: Last Ten Years
FINANCIALS
117
122
193
198
243
245
246
ENCLOSURES
Notice
Attendance Slip and Form of Proxy
REGISTERED OFFICE
Landmark
Race Course Circle
Vadodara 390 007
Tel : +91-265-3263701
CIN : L65190GJ1994PLC021012
CORPORATE OFFICE
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
Tel : +91-22-33667777
Fax : +91-22-26531122
STATUTORY AUDITORS
B S R & CO. LLP
1st Floor, Lodha Excelus
Apollo Mills Compound
N. M. Joshi Marg
Mahalaxmi
Mumbai 400 011
REGISTRAR AND
TRANSFER AGENTS
3i Infotech Limited
International Infotech Park
Tower 5, 3rd Floor
Vashi Railway Station Complex
Vashi, Navi Mumbai 400 703
LEADERSHIP THROUGH
TECHNOLOGY...
Digital technology is transforming the way we lead
our lives today. The banking and financial services
industry is a clear representation of this transformation.
Consumers are more mobile than ever before and
expect services to be available at the time and place
of their choice.
At ICICI Bank, we have always realised this need of our
customers and developed technology-led offerings to
deliver a seamless banking experience at all places of
their choice, be it their place, our place or while they
are on the move.
Our consistency and speed in introducing these
offerings has been recognised at various national
and international forums, through the years. Our zeal
to improve the banking experience for customers
continues to drive us to innovate and carry forward our
leadership in delivering banking services using cuttingedge technology.
...more on page 12
...more on page 18
9,188 BILLION
101.80 BILLION
97.26 BILLION
45.8%
34.7%
CASA RATIO
41 MILLION+
CARDS IN FORCE
95%
3.6 MILLION
` TRILLION
18,216
150+ SERVICES
Funds Transfer
3 TRILLION
Financial Highlights
Total Deposits
Total Advances
4,352.64
4,214.26
3,875.22
3,615.63
3,319.14
3,387.03
2,926.14
2,555.00
2,537.28
1,971.83
1,895.36
27.4%
1,700.37
6.0%
1,444.81
760.46
856.51
2,902.49
2,283.26
991.33
1,148.60
349.73
369.26
432.45
495.20
FY2012
FY2013
FY2014
FY2015
1,342.30
588.70
FY2016
Total (` in billion)
Total Assets
28.6%
FY2013
4.4%
4.4%
5,946.42
FY2014
27.5%
28.8%
30.1%
32.5%
38.0%
FY2012
FY2013
39.0%
FY2014
Retail
Domestic corporate
SMEAG
42.5%
FY2015
46.6%
FY2016
Overseas
Total (` in billion)
6,461.29
FY2015
5.94%
4.92%
12.68%
12.80%
FY20121
FY20131
4.24%
3.55%
12.78%
12.78%
13.09%
FY20142
FY20152
FY20162
7,206.95
FY2016
Tier I
1. In accordance with Basel II guidelines of RBI
2. In accordance with Basel III guidelines of RBI
4.3%
4,890.69
FY2012
5.2%
37.0%
5.84%
5,367.95
25.3%
26.5%
24.3%
21.6%
Tier II
3.33%
3.48%
3.49%
3.11%
2.73%
190.40
212.24
42.9%
40.5%
38.2%
36.8%
34.7%
164.75
138.66
107.34
FY2012
FY2013
FY2014
FY2015
FY2016
FY2012
FY2014
FY2015
FY2016
Standalone PAT
Consolidated PAT
111.75
83.25
FY2013
98.10
97.26
96.04
110.41
122.47
101.80
76.43
64.65
FY2012
FY2013
FY2014
FY2015
FY2016
FY2012
FY2013
FY2014
FY2015
FY2016
M. K. Sharma
With our focus on core operating parameters, we
achieved an operating profit of ` 238.63 billion, a yearon-year growth of 21.0%.
In view of the challenges being experienced by certain
sectors of the economy, the Bank further strengthened
its balance sheet by creating a collective contingency
and related reserve of ` 36.00 billion on a prudent
basis. This is over and above provisions made for nonperforming and restructured loans as per Reserve Bank
of India guidelines.
The Banks standalone profit before the above
collective contingency and related reserve and tax
was ` 157.96 billion. Even after taking into account the
above prudent reserving and provision for tax, the Bank
achieved a standalone profit after tax of ` 97.26 billion
and a consolidated profit after tax of ` 101.80 billion.
4.
Resolution of exposures through asset sales by
borrowers, change in management and working with
stakeholders to ensure that companies are able to
operate at an optimal level and generate cash flows.
Chanda Kochhar
of
loan
portfolios
across
BOARD OF DIRECTORS
M. K. Sharma
Chanda Kochhar
Chairman
M. S. Ramachandran
Homi Khusrokhan
V. Sridar
Audit Committee
Homi Khusrokhan Chairman
Dileep Choksi Alternate Chairman
M. S. Ramachandran
V. Sridar
Board Governance,Remuneration &
Nomination Committee
Homi Khusrokhan Chairman
M. K. Sharma
M. S. Ramachandran
Corporate Social Responsibility Committee
M. S. Ramachandran Chairman
Tushaar Shah
Alok Tandon
Chanda Kochhar
Tushaar Shah
Dileep Choksi
V. K. Sharma
N. S. Kannan
Alok Tandon
Rajiv Sabharwal
Executive Director
Vishakha Mulye
Executive Director
Executive Director
Vijay Chandok
GROUP EXECUTIVES
Shilpa Kumar
10
Anirudh Kamani
Anil Kaul
Ravi Narayanan
Amit Palta
Murali Ramakrishnan
Kusal Roy
Anup Saha
P. Sanker Company Secretary
Supritha Shetty Group Compliance Officer
Saurabh Singh
G. Srinivas
Rahul Vohra
Credit Committee
Chanda Kochhar Chairperson
Homi Khusrokhan
M. S. Ramachandran
Customer Service Committee
M. S. Ramachandran Chairman
V. Sridar
Alok Tandon
Chanda Kochhar
Fraud Monitoring Committee
V. Sridar Chairman
Dileep Choksi
Homi Khusrokhan
V. K. Sharma
Chanda Kochhar
Rajiv Sabharwal
Information Technology Strategy Committee
Homi Khusrokhan Chairman
V. Sridar
Chanda Kochhar
Risk Committee
M. K. Sharma Chairman
Dileep Choksi
Homi Khusrokhan
V. K. Sharma
V. Sridar
Alok Tandon
Chanda Kochhar
Stakeholders Relationship Committee
Homi Khusrokhan Chairman
V. Sridar
N. S. Kannan
N. S. Kannan
Executive Director
Rajiv Sabharwal
Executive Director
Vishakha Mulye
Executive Director
Vijay Chandok
Executive Director
(Designate), Subject
to RBI approval
Fiscal 2016 was marked by a weak global economic environment, sharp downturn in the commodity
prices, gradual nature of the domestic economic recovery and high corporate leverage. Against this
backdrop, we continued to maintain and enhance the strength of our balance sheet with granularity
in funding, efficiency in capital usage and proactive reserving. With subdued corporate loan
demand, we increased the momentum in retail lending. The monetisation transactions in insurance
subsidiaries during the year demonstrated the significant value creation in the Group. We have
continued to build on our franchise through a robust funding mix, cost efficiency, digital leadership
and large physical footprint. We believe that, given our strong core earnings, healthy capital
position, large customer base, talented management team and substantial value in subsidiaries,
we will be able to enhance our franchise further and capitalise on growth opportunities.
Providing exemplary customer service across channels continues to be our top priority. We
have made significant investments in Big Data Analytics, Multi-channel Architecture and bestin-class Customer Relationship Management tools to ensure we have a 360 degree view of our
customers and can offer best suited products and services to them. In future, we will leverage new
technologies like Artificial Intelligence to drive customer engagement. We continue to innovate to
empower our customers - we dematerialised credit and debit cards on our digital bank, Pockets,
to allow NFC payments through mobile, introduced self-service kiosks and gave India its first 24x7
robotic lockers (Smart Vaults). Additionally, we added to our branch and ATM network we are
now closer to our customers with 4,450 branches and have the largest number of 13,766 ATMs
across all private banks.
In fiscal 2016, the operating environment for the corporate sector remained challenging due to
high leverage, shortfalls in cash flow generation, continued weak corporate investment activity
and decline in commodity prices which had an impact on borrowers in commodity-linked sectors
such as iron and steel. During the year, we explored new income streams while proactively
monitoring our existing exposure and further strengthening our frameworks for exposure and risk
management. We focused on further enhancing our commercial banking franchise and incremental
disbursements were largely to higher rated corporates. In the new financial year, the Wholesale
Banking Group will continue to focus on enhancing the quality of the portfolio and the quality of
earnings by further developing our expertise in products, processes and technology to meet client
requirements and leverage growth opportunities in the market.
During fiscal 2016, our focus was to balance risks in the global economy - arising out of monetary
tightening in the US, continuing growth concerns in China and the sharp drop in commodity prices
- with the growth momentum in India. In this context, the Bank identified growth opportunities in
select areas with enhanced controls, while repatriating surplus capital and profits from its overseas
businesses. Accordingly, the Bank continued to leverage its strong brand, service culture and
technological capabilities to grow its franchise with multinational companies and non-resident
Indians. ICICI Bank became the first bank in India to launch its online Money2World service for its
customers. In the SME segment in India, the Bank continued to leverage its presence to grow in a
more granular manner and enabled a larger number of entrepreneurs to participate in the emerging
economic opportunities.
11
BANKING
ON THE MOVE
3.6 million
downloads of Pockets,
Indias largest digital
wallet by a bank
mVisa
60%
of savings account
transactions are done
through mobile and
internet banking
13
BANKING
ON THE MOVE
eftCheques
14
iLoans
An app that makes it easy
for customers to track and
access all their loan-related
details while on the move
iMobile
Eazypay
15
BANKING
AT YOUR PLACE
4.2 million
Money2World
Indias first fully online service
aimed at resident Indians
enabling them to send money
overseas
Voice Biometric
enables us to recognise
our customers voices
over the phone, allowing
them to access their
accounts
Express
Home Loans
17
BANKING
AT OUR PLACE
18
1st
Touch Banking
110 fully automated branches
across 33 cities offer
complete banking solutions
round the clock
20%
of the transactions in
Touch Banking branches
happen on Sundays and
holidays
Insta Banking
19
FOCUS AREAS
1. Skill Development & Sustainable Livelihood
In fiscal 2016, ICICI Foundation significantly enhanced the
outreach of the ICICI Academy for Skills. ICICI Academy
provides vocational training to youth from economically
weaker sections to help them earn a sustainable livelihood.
During the year, 11 new centres were opened with the
most recent centre opened in Mumbai. In addition, ICICI
Foundation further strengthened its activities under the
Rural Self Employment Training Institutes (RSETIs) in
Udaipur and Jodhpur districts of Rajasthan. During fiscal
2016, over 40,000 youth were trained through these
initiatives.
20
Over 10,000 women were trained during fiscal
2016 with 4,400 at the women-only centres
Highlights - RSETI
Over 15,000 youth were trained in fiscal 2016; with
women representation at 50%
2. Elementary Education
(i) School and Teacher Education Reform Programme
ICICI Foundation has partnered with the Governments
of Rajasthan and Chhattisgarh to implement the School
and Teacher Education Reform Programme (STERP)
aimed at improving the quality of school education in
government schools in these states. In fiscal 2016, the
programme focused on strengthening District Institutes of
Education & Training, capacity building and development
of 250 demonstration schools (150 in Rajasthan and 100
in Chhattisgarh) to make them compliant as per Right
to Education Act standards. In Rajasthan, 17 of these
schools have been selected by the state government as
model schools.
20 new nodal-level Academic Resource Centres
were added taking the total number to 55
School Management Committees (SMCs) in 150
schools were made operational and 1,140 SMC
members were trained
21
SMC members were trained in the upkeep and
maintenance of toilets to ensure hygiene and
proper utilisation
3. Primary Healthcare
(i) Strengthening Convergent Action for Reducing
Child Under-nutrition, Rajasthan:
ICICI Foundation in partnership with the Government
of Rajasthan implemented a three-year pilot project
across 494 Anganwadi Centres (AWCs) in Shahabad and
Kishanganj blocks of Baran district. It aimed to improve
the nutrition level of children up to five years through
prevention, management and treatment of undernutrition. Mother and Child Health and Nutrition days
were institutionalised across these 494 AWCs resulting in
monitoring of the childrens growth and referral of undernourished children to Malnutrition Treatment Centres. In
addition, 186 Village Health Sanitation Water and Nutrition
Committees were made operational in the project area.
22
4. Other Initiatives
ICICI Bank Limited
ICICI Bank continued to support ICICI Foundation in its
efforts to promote inclusive growth. During fiscal 2016, the
Bank has contributed ` 450.0 million to support initiatives
in skill building, elementary education, healthcare and
rural development.
A focus area for the Bank in promoting inclusive growth
has been to support rural development. This involves
adopting a holistic approach to improve livelihoods
and enhance access to financial services. The Bank has
developed an extensive network of branches and Business
Correspondents (BCs) to strengthen efforts in this space.
Training is provided to individuals to become self-employed
and facilitate financial inclusion of a larger population. As
on March 31, 2016, the Bank had 2,294 branches in rural
and semi-urban locations, of which 573 branches were
in unbanked villages. The Bank is working with over 265
BCs who have a network of about 8,200 Customer Service
Other Contributions
(i) Employee salary donation for Chennai relief
In December 2015, Chennai faced unprecedented rainfall,
which inundated several parts of the city. The ICICI Group
contributed ` 100.0 million to the Chief Ministers Relief
Fund to help the people affected by the floods. The
donation comprised contribution from the salaries of the
employees of ICICI Bank and its group companies, as well
as the companies themselves.
23
Awards
ICICI BANK RECEIVED SEVERAL AWARDS AND RECOGNITIONS IN FISCAL
2016, IN INDIA AND ABROAD. SOME OF THESE ARE:
Best Retail Bank in India at the Asian
Banker International Excellence in
Retail Financial Services Awards 2016.
The Bank has won this award three
years in a row.
24
Directors Report
Your Directors have pleasure in presenting the Twenty-Second Annual Report of ICICI Bank Limited along with the audited
financial statements for the year ended March 31, 2016.
FINANCIAL HIGHLIGHTS
The financial performance for fiscal 2016 is summarised in the following table:
` in billion, except percentages
Net interest income and other income
Operating expenses
Provisions & contingencies (excluding collective contingency
and related reserve)1
Profit before collective contingency and related reserve and tax
Collective contingency and related reserve2
Profit before tax
Profit after tax
1.
2.
Fiscal 2016
% change
312.16
114.96
365.46
126.83
17.1%
10.3%
39.00
158.20
158.20
111.75
80.67
157.96
36.00
121.96
97.26
106.8%
(22.9)%
(13.0)%
Fiscal 2015
Fiscal 2016
% change
183.39
183.39
122.47
179.04
36.00
143.04
101.80
(2.4)%
(22.0)%
(16.9)%
Fiscal 2015
Refer note no. 7 in schedule 18 'Notes to Accounts' of the consolidated financial statements.
Appropriations
The profit after tax of the Bank for fiscal 2016 is ` 97.26 billion after provisions and contingencies of ` 116.67 billion
(including collective contingency and related reserve amounting to ` 36.00 billion), provision for taxes of ` 24.70 billion
and all expenses. The disposable profit is ` 269.87 billion, taking into account the balance of ` 172.61 billion brought
forward from the previous year. Your Banks dividend policy is based on the profitability and key financial metrics of the
Bank, the Banks capital position and requirements and the regulations pertaining to the same. Your Bank has a consistent
dividend payment history. Given the financial performance for fiscal 2016 and in line with the Banks dividend policy, your
Directors are pleased to recommend a dividend of ` 5.00 per equity share for the year ended March 31, 2016 and have
appropriated the disposable profit as follows:
` in billion
To Statutory Reserve, making in all ` 187.52 billion
To Special Reserve created and maintained in terms of Section 36(1)(viii) of the Income
Tax Act, 1961, making in all ` 79.29 billion
To Capital Reserve, making in all ` 49.67 billion1
To/(from) Investment Reserve Account, making in all Nil
To Revenue and other reserves, making in all ` 31.48 billion2,3
Dividend for the year (proposed)
On equity shares @ ` 5.00 per share of face value ` 2.00 each (@ ` 5.00 per
share of face value ` 2.00 each for fiscal 2015)4
On preference shares @ ` 100.00 per preference share (@ ` 100.00 per
preference share for fiscal 2015) (`)
Corporate dividend tax
Leaving balance to be carried forward to the next year
Fiscal 2015
Fiscal 2016
27.94
24.32
11.00
2.92
(1.27)
0.01
13.50
23.82
5.01
29.02
29.11
35,000
2.71
172.61
35,000
2.79
171.32
25
Directors Report
1. Includes transfer of ` 19.47 billion on account of sale of part of equity investment in the Banks insurance subsidiaries during
fiscal 2016.
2. Includes transfer of ` 9.3 million to Reserve Fund for fiscal 2016 (` 7.7 million for fiscal 2015) in accordance with regulations
applicable to the Sri Lanka branch.
3. During fiscal 2015, an amount of ` 9.29 billion was utilised with approval of Reserve Bank of India (RBI) to provide for outstanding
Funded Interest Term Loan related to accounts restructured prior to the issuance of RBI guidelines in 2008. Refer detailed note no.
25 in schedule 18 notes to accounts of the financial statements.
4. Includes dividend for the prior year paid on shares issued after the balance sheet date and prior to the record date.
26
The Board of Directors at their Meeting held on November 16, 2015 approved the appointment of Vishakha Mulye as
wholetime Director (designated as executive Director) for a period of five years effective from the date of receipt of RBI
approval. Pursuant to approval granted by RBI, Vishakha Mulye was appointed as an executive Director on the Board of
the Bank effective January 19, 2016 for a period of three years. The Members through a postal ballot on April 22, 2016
approved the appointment of Vishakha Mulye for a period of five years effective January 19, 2016 upto January 18, 2021.
K. Ramkumar, executive Director stepped down from his position as an executive Director effective close of business
hours on April 29, 2016 consequent to his decision to opt for early retirement to pursue other interests. The Board placed
on record its appreciation of K. Ramkumars immense contribution to the Bank.
Independent Directors
The Board of the Bank at March 31, 2016 consisted of 13 Directors, out of which seven are independent Directors, one is
a Government Nominee Director and five are wholetime Directors.
All independent Directors have given declarations that they meet the criteria of independence as laid down
under Section 149 of the Companies Act, 2013 and Regulation 16 of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 which have been relied on by the Bank and were
placed at the Board Meeting held on April 29, 2016.
Retirement by rotation
In terms of Section 152 of the Companies Act, 2013, Rajiv Sabharwal and N. S. Kannan would retire by rotation at the
forthcoming AGM and are eligible for re-appointment. Rajiv Sabharwal and N. S. Kannan have offered themselves for
re-appointment.
AUDITORS
Statutory Auditors
At the AGM held on June 30, 2014, the Members approved the appointment of M/s B S R & Co. LLP, Chartered
Accountants as statutory auditors for a period of four years commencing from the Twentieth AGM till the conclusion
of the Twenty-Fourth AGM subject to the annual approval of Reserve Bank of India (RBI) and ratification by the
Members every year. As recommended by the Audit Committee, the Board has proposed the ratification of
appointment of M/s B S R & Co. LLP, Chartered Accountants as statutory auditors for fiscal 2017. Their appointment
for fiscal 2017 has been approved by RBI. The appointment is accordingly proposed in the Notice of the forthcoming
AGM vide item no. 6 for ratification by Members.
There are no qualifications, reservation or adverse remarks made by the statutory auditors in the audit report.
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 Bank with the approval of its Board, appointed M/s. Parikh Parekh & Associates,
a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Bank for the financial year ended
March 31, 2016. The Secretarial Audit Report is annexed herewith as Annexure B. 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.
27
Directors Report
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 Report and the
Accounts are being sent to the Members excluding the aforesaid Annexure. Any Member interested in obtaining a copy
of the Annexure may write to the Company Secretary at the Registered Office of the Bank.
28
subsidiaries. The Committee reviews migration to the advanced approaches under Basel II and implementation of
Basel III, risk return profile of the Bank, compliance with RBI guidelines pertaining to credit, market and operational
risk management systems 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, technology, compliance,
group, management and capital at risk as part of risk dashboard. In addition, the Committee has oversight on risks of
subsidiaries covered under the Group Risk Management Framework. The Risk Committee also reviews the Liquidity
Contingency Plan for the Bank and the threshold limits.
The Credit Committee of the Board, apart from sanctioning credit proposals based on the Banks credit authorisation
framework, reviews developments in key industrial sectors and the Banks exposure to these sectors as well as to
large borrower accounts and borrower groups. The Credit Committee also reviews the major credit portfolios, nonperforming loans, accounts under watch, overdues and incremental sanctions.
The Audit Committee of the Board provides direction to and monitors the quality of the internal audit function and also
monitors compliance with inspection and audit reports of Reserve Bank of India, other regulators and statutory auditors.
The Asset Liability Management Committee is responsible for managing liquidity and interest rate risk and reviewing
the asset-liability position of the Bank.
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/sub-groups.
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 Banks principal risks in accordance with well-defined policies and procedures.
The Risk Management Group is further organised into the Credit Risk Management Group, Market Risk Management
Group and Operational Risk Management Group. These groups are completely independent of all business operations
and coordinate with representatives of the business units to implement the Banks risk management policies and
methodologies. The Internal Audit and Compliance groups are responsible to the Audit Committee of the Board.
CORPORATE GOVERNANCE
The corporate governance framework at ICICI Bank is based on an effective independent Board, the separation of the
Boards supervisory role from the executive management and the constitution of Board Committees, which at March 31,
2016 comprised majority of independent Directors and most of the Committees were chaired by independent Directors,
to oversee critical areas.
I.
ICICI Banks corporate governance philosophy encompasses regulatory and legal requirements, which aims at a high
level of business ethics, effective supervision and enhancement of value for all stakeholders. The corporate governance
framework adopted by the Bank already encompasses significant portion of the recommendations contained in the
Corporate Governance Voluntary Guidelines 2009 issued by the Ministry of Corporate Affairs, Government of India.
Whistle Blower Policy
The Bank has formulated a Whistle Blower Policy. The policy comprehensively provides an opportunity for any employee/
Director of the Bank to raise any issue concerning breaches of law, accounting policies or any act resulting in financial
29
Directors Report
or reputation loss and misuse of office or suspected or actual fraud. The policy provides for a mechanism to report
suchconcerns to the Audit Committee through specified channels. The policy has been periodically communicated to
the employees and also posted on the Banks intranet. The Whistle Blower Policy complies with the requirements of
Vigil mechanism as stipulated under Section 177 of the Companies Act, 2013. The details of establishment of the Whistle
Blower Policy/Vigil mechanism have been disclosed on the website of the Bank.
Code of Conduct as prescribed under 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, ICICI Bank has instituted a comprehensive code of conduct to regulate, monitor and report trading by
its employees and other connected persons.
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 (www.icicibank.com). Pursuant
to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, 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.
Material Subsidiaries
In accordance with the requirements of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Bank has formulated a Policy for determining Material Subsidiaries and the
same has been hosted on the website of the Bank (http://www.icicibank.com/managed-assets/docs/investor/policy-fordetermining-material-subsidiaries/policy-for-determining-material-subsidiaries.pdf).
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 industry and 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 and can be accessed on the link: (http://www.icicibank.com/managed-assets/docs/about-us/
board-of-directors/familiarisation-programme-for-independent-directors.pdf).
CEO/CFO Certification
In terms of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015,
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.
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 Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 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 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. At March 31, 2016, independent Directors constituted
a majority of these Board Committees and all Committees except the Credit Committee and Review Committee for
Identification of Wilful Defaulters/Non Co-operative Borrowers were chaired by independent Directors.
There were ten Meetings of the Board during fiscal 2016 - on April 27, June 9, June 29, July 31, September 16, October
30 and November 16 in 2015 and January 28, March 9 and March 31-April 1 in 2016.
30
At March 31, 2016, the Board of Directors consisted of 13 members. 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
Annual General Meeting (AGM) and the number of other directorships and board committee memberships held by them
at March 31, 2016 are set out in the following table.
Name of Director
Board Meetings
attended during
the year
Attendance at
last AGM
(June 29, 2015)
7/7
N.A.
5(1)
2/3
Present
N.A.
N.A
N.A.
10/10
Present
8(5)
10/10
Present
2(1)
10/10
Present
2(1)
7/10
Present
7/10
Present
9/10
Present
7(4)
2/10
Absent
2(1)
10/10
Present
10/10
Absent
8/10
Present
3/3
N.A.
10/10
Present
Independent Directors
M. K. Sharma, Chairman (w.e.f. July 1, 2015)
(DIN: 00327684)
K. V. Kamath (upto close of business hours
on June 30, 2015)*
(DIN: 00043501)
Dileep Choksi
(DIN: 00016322)
Homi Khusrokhan
(DIN: 00005085)
M. S. Ramachandran
(DIN: 00943629)
Tushaar Shah*
(DIN: 03055738)
V. K. Sharma*
(DIN : 02449088)
V. Sridar*
(DIN: 02241339)
Wholetime/executive Directors
Chanda Kochhar
(DIN: 00043617)
N. S. Kannan
(DIN: 00066009)
K. Ramkumar*
(DIN: 00244711)
Vishakha Mulye (w.e.f. January 19, 2016)
(DIN: 00203578)
Rajiv Sabharwal
(DIN: 00057333)
In terms of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the
number of Committees (Audit Committee and Stakeholders Relationship Committee) of public limited companies in which
a Director is a member/chairman were within the limits provided under listing regulations, for all the Directors of the Bank.
The number of directorships of each independent Director is also within the limits prescribed under listing regulations.
31
Directors Report
The terms of reference of the Board Committees as mentioned earlier, their composition and attendance of the respective
Members at the various Committee Meetings held during fiscal 2016 are set out below:
32
Composition
At March 31, 2016, the Board Governance, Remuneration & Nomination Committee comprised of three independent
Directors and was chaired by Homi Khusrokhan, an independent Director. There were eight Meetings of the Committee
during the year. The details of the composition of the Committee and attendance at its Meetings are set out in the
following table:
Name of Member
Homi Khusrokhan, Chairman
K. V. Kamath (upto close of business hours on June 30, 2015)1
M. K. Sharma (w.e.f. July 1, 2015)
M. S. Ramachandran
1.
Remuneration policy
Reserve Bank of India (RBI) vide its circular DBOD No. BC. 72/29.67.001/2011-12 dated January 13, 2012 has issued
guidelines on Compensation of wholetime Directors/Chief executive Officers/Risk takers and Control function staff etc.
for implementation by private sector banks and foreign banks from the financial year 2012-13. The Bank adopted a
Compensation Policy in January 2012 which is amended from time to time based on regulatory requirements. The
Compensation Policy of the Bank as adopted in line with the RBI circular is in compliance with the requirements for the
Remuneration Policy as prescribed under Companies Act, 2013. Further details with respect to the Compensation Policy
are provided under the section titled Compensation Policy and Practices.
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 it is 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) would be sitting fee for
attending each Meeting of the Committee/Board as approved by the Board from time to time within the limits as provided
under Companies Act, 2013 and related rules. RBI vide its guidelines dated June 1, 2015 regarding Compensation of nonexecutive Directors (NEDs) (except part-time Chairman) of Private Sector Banks has permitted payment of profit related
Commission up to ` 1,000,000 per annum for non-executive Directors (other than non-executive (part-time) Chairman).
The Board at its Meeting held on September 16, 2015, approved the payment of profit related commission upto
` 1,000,000 per annum to non-executive Directors (other than the non-executive (part-time) Chairman and the Government
Nominee Director) subject to the approval of Members. Accordingly, this proposal is being placed for approval of the
Members vide item no. 10 of the Notice of the Annual General Meeting.
33
Directors Report
For the non-executive (part-time) Chairman, the remuneration, in addition to sitting fee includes such fixed payments
on such periodicity as may be recommended by the Board and approved by the Members and RBI from time to time,
maintaining a Chairmans office at the Banks 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
allowances for attending to duties as Chairman of the Bank and any other modes of remuneration as may be permitted
by RBI through any circulars/guidelines as may be issued from time to time.
All the non-executive/independent Directors would be entitled to reimbursement of expenses for attending Board/
Committee Meetings, official visits and participation in various forums on behalf of the Bank.
Basic
Performance bonus for fiscal 2016
Allowances and perquisites2
Contribution to provident fund
Contribution to superannuation fund
Contribution to gratuity fund
Chanda Kochhar
23,192,040
16,578,411
2,783,043
3,478,810
1,931,897
12,466,572
13,367,997
4,448,443
1,838,568
1,838,568
607,912
2,298,204
2,298,204
1,276,269
1,276,269
421,992
Rajiv Sabharwal
14,481,840
12,998,352
1,737,816
2,172,278
1,206,337
1,375,000
1,450,000
1,450,000
685,000
725,000
725,000
685,000
725,000
725,000
685,000
685,000
655,000
725,000
1. Options granted for fiscal 2016 are subject to Reserve Bank of India (RBI) approval.
2. Allowances and perquisites exclude stock options exercised during fiscal 2016 which does not constitute remuneration paid to the
wholetime Directors for fiscal 2016.
3. Vishakha Mulye has joined the services of the Bank on December 2, 2015. Pursuant to approval granted by RBI vide its letter dated
January 15, 2016 Vishakha Mulye assumed office as executive Director with effect from January 19, 2016.
4. The above table excludes special grant of stock options approved by RBI in November 2015 aggregating to 2,100,000 for Chanda
Kochhar and 1,000,000 each for N. S. Kannan, K. Ramkumar and Rajiv Sabharwal.
34
Perquisites (evaluated as per Income-Tax rules wherever applicable and otherwise at actual cost to the Bank) such as the
benefit of the Banks furnished accommodation, gas, electricity, water and furnishings, club fees, group insurance, use of
car and telephone at residence or reimbursement of expenses in lieu thereof, medical reimbursement, leave and leave
travel concession, education benefits, provident fund, superannuation fund and gratuity, were provided in accordance
with the scheme(s) and rule(s) applicable from time to time. In line with the staff loan policy applicable to specified grades
of employees who fulfill prescribed eligibility criteria to avail loans for purchase of residential property, the wholetime
Directors are also eligible for housing loans subject to approval of RBI.
The Members have approved the minimum and maximum ranges for remuneration as well as supplementary allowance
for the wholetime Directors. In terms of the said approvals, the monthly basic salary for Chanda Kochhar, Managing
Director & CEO would be within the range of ` 1,350,000 ` 2,600,000, N. S. Kannan and Vishakha Mulye, executive
Directors would be within the range of ` 950,000 ` 1,700,000 and Rajiv Sabharwal, executive Director would be within
the range of ` 900,000 ` 1,600,000. The monthly supplementary allowances for the Managing Director & CEO, would be
within the range of ` 1,000,000 ` 1,800,000, for N. S. Kannan and Vishakha Mulye, executive Directors would be within
the range of ` 675,000 - ` 1,225,000 and for Rajiv Sabharwal, executive Director would be within the range of ` 650,000 ` 1,200,000. The Board would determine the actual remuneration/supplementary allowance payable within the above
ranges from time to time subject to the approval of RBI.
Name of Director
M. K. Sharma (w.e.f July 1, 2015)
K. V. Kamath (upto close of business hours on June 30, 2015)
Dileep Choksi
Homi Khusrokhan
M. S. Ramachandran
Tushaar Shah
V. K. Sharma
V. Sridar
Alok Tandon1
Total
1.
860,000
380,000
1,420,000
2,200,000
1,940,000
700,000
860,000
1,600,000
9,960,000
35
Directors Report
The details of shares and convertible instruments of the Bank, held by the non-executive Directors as at March 31, 2016
are set out in the following table:
Instrument
M. K. Sharma
Equity
50,000
Dileep Choksi
Equity
2,500
Homi Khusrokhan
Equity
3,5001
M. S. Ramachandran
Name of Director
Equity
1,300
Tushaar Shah
V. K. Sharma
V. Sridar
Alok Tandon
1.
The Board Governance, Remuneration & 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 wholetime/independent Directors
and the Board and to extend or continue the term of appointment of independent Director 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 (WTDs), commission and
fee payable to non-executive Directors subject to applicable regulations, 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 (ESOS) and decide on the
grant of the Banks stock options to employees and WTDs of the Bank and its subsidiary companies.
xternal consultants whose advice has been sought, the body by which they were commissioned and in what
E
areas of the remuneration process
The Bank did not take advice from an external consultant on any area of remuneration during the year ended
March 31, 2016.
Scope of the Banks 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 and approved by the BGRNC and the Board at its Meeting
held on September 16, 2015, pursuant to the guidelines issued by RBI, covers all employees of the Bank, including
those in overseas branches of the Bank. In addition to the Banks Compensation Policy guidelines, the overseas
branches also adhere to relevant local regulations.
36
All employees of the Bank are governed by the compensation policy. The total number of permanent employees
governed by the compensation policy of the Bank at March 31, 2016 was 72,175.
b) Information relating to the design and structure of remuneration processes
The Bank has under the guidance of the Board and the BGRNC, followed compensation practices intended to
drive meritocracy within the framework of prudent risk management. This approach has been incorporated in the
Compensation Policy, the key elements of which are given below:
The BGRNC has oversight over compensation. The Committee defines Key Performance Indicators (KPIs) for
WTDs and equivalent positions and the organisational performance norms for bonus based on the financial
and strategic plan approved by the Board. The KPIs include both quantitative and qualitative aspects. The
BGRNC assesses organisational performance as well as the individual performance for WTDs and equivalent
positions. Based on its assessment, it makes recommendations to the Board regarding compensation for
WTDs and equivalent positions and bonus for employees, including senior management and key management
personnel.
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 nonfinancial indicators of performance including aspects like risk management and customer service. In addition,
the Bank has an employee stock option scheme aimed at aligning compensation to long term performance
through stock option grants that vest over a period of time. Compensation to staff in financial and risk control
functions is independent of the business areas they oversee and depends on their performance assessment.
Whether the Remuneration Committee reviewed the firms remuneration policy during the past year, and if so,
an overview of any changes that were made
The Banks Compensation Policy was reviewed by the BGRNC and the Board on April 27, 2015. The section
on Effective Governance of Compensation in the Compensation Policy was then modified pursuant to the
Guidelines for Implementation of Countercyclical Capital Buffer (CCCB). The Compensation Policy was further
modified by the BGRNC and the Board at its Meeting held on September 16, 2015 to include the aspects relating
to Compensation to non-executive part-time Chairman and to non-executive Directors (other than part-time
Chairman and Government Nominee).
Discussion of how the Bank ensures that risk and compliance employees are remunerated independently of
the businesses they oversee
The compensation of staff engaged in control functions like risk and compliance depends on their performance,
which is based on achievement of the key results of their respective functions. Their goal sheets do not include
any business targets.
c) Description of the ways in which current and future risks are taken into account in the remuneration processes
Overview of the key risks that the Bank takes into account when implementing remuneration measures
The Board approves the risk framework for the Bank and the business activities of the Bank are undertaken within
this framework to achieve the financial plan. The risk framework includes the Banks risk appetite, limits framework
and policies and procedures governing various types of risk. KPIs of WTDs & equivalent positions, as well as
employees, incorporate relevant risk management related aspects. For example, in addition to performance
targets in areas such as growth and profits, performance indicators include aspects such as the desired funding
profile and asset quality. The BGRNC takes into consideration all the above aspects while assessing organisational
and individual performance and making compensation-related recommendations to the Board.
37
Directors Report
Overview of the nature and type of key measures used to take account of these risks, including risk difficult to
measure
The annual performance targets and performance evaluation incorporate both qualitative and quantitative
aspects including asset quality, provisioning, increase in stable funding sources, refinement/improvement of the
risk management framework, effective management of stakeholder relationships and mentoring key members of
the top and senior management.
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 achieve the financial plan. To ensure
effective alignment of compensation with prudent risk taking, the BGRNC takes into account adherence to the risk
framework in conjunction with which the financial plan/targets have been formulated. KPIs of WTDs & equivalent
positions, as well as employees, incorporate relevant risk management related aspects. For example, in addition
to performance targets in areas such as growth and profits, performance indicators include aspects such as
the desired funding profile and asset quality. The BGRNC takes into consideration all the above aspects while
assessing organisational and individual performance and making compensation-related recommendations to the
Board.
Discussion of how the nature and type of these measures 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) Description of the ways in which the Bank seeks to link performance during a performance measurement period
with levels of remuneration
Overview of main performance metrics for the Bank, top level business lines and individuals
The main performance metrics include profits, loan growth, deposit growth, risk metrics (such as quality of
assets), compliance with regulatory norms, refinement of risk management processes and customer service. The
specific metrics and weightages for various metrics vary with the role and level of the individual.
Discussion of how amounts of individual remuneration are linked to the Bank-wide and individual performance
The BGRNC takes into consideration all the above aspects while assessing organisational and individual
performance and making compensation-related recommendations to the Board regarding the level of performance
bonus for employees and the performance assessment of WTDs and equivalent positions. The performance
assessment of individual employees is undertaken based on achievements vis--vis their goal sheets, which
incorporate the various aspects/metrics described earlier.
iscussion of the measures the Bank will in general implement to adjust remuneration in the event that
D
performance metrics are weak, including the Banks criteria for determining weak performance metrics
The Banks 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 on none, part or all of the unvested deferred variable compensation.
e) Description of the ways in which the Bank seeks to adjust remuneration to take account of the longer term
performance
Discussion of the Banks 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 quantum of bonus for an employee does not exceed a certain percentage (as stipulated in the compensation
policy) of the total fixed pay in a year. Within this percentage, if the quantum of bonus exceeds a predefined
threshold percentage of the total fixed pay, a part of the bonus is deferred and paid over a period. These
thresholds for deferrals are same across employees.
38
Discussion of the Banks 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 is subject to malus, under which the Bank would prevent vesting of all or
part of the variable pay in the event of an enquiry determining gross negligence, breach of integrity or in the
event of a reasonable evidence of deterioration in financial performance. In such cases, variable pay already paid
out may also be subjected to clawback arrangements, as applicable.
f) Description of the different forms of variable remuneration that the Bank utilises and the rationale for using these
different forms
verview of the forms of variable remuneration offered. A discussion of the use of different forms of variable
O
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 Bank pays performance linked retention pay (PLRP) to its front-line staff and junior management and
performance bonus to its middle and senior 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 also pays variable pay to sales officers and relationship managers in wealth
management roles while ensuring that such pay-outs are in accordance with applicable regulatory requirements.
The Bank ensures higher proportion of variable pay at senior levels and lower variable pay for front-line staff and
junior management levels.
5
0.3
8
0.5
6
Nil
Nil
Nil
Nil
Nil
Nil
Nil
172.6
65.0
65.0
4,395,000
201.7
Nil
4,610,000
54.3
Nil
13,057,500
Nil
23.4
Nil
16,725,000
Nil
1. Fixed pay includes basic salary, supplementary allowances, superannuation, contribution to provident fund and gratuity fund by
the Bank. The amount contains part year payouts for Vishakha Mulye and Zarin Daruwala for fiscal 2016.
2. The share-linked instruments (ESOPs) are at a face value of ` 2.00. Excludes special grant of stock options approved by RBI in
November 2015, aggregating to 5.8 million and grant of 1.0 million options to Vishakha Mulye.
3. Comprises special grants, including grant to Vishakha Mulye.
39
Directors Report
Disclosures required with respect to Section 197(12) of the Companies Act, 2013
The ratio of the remuneration of each Director to the median employees 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.
(i) The ratio of the remuneration of each director to the median remuneration of the employees of the company for
the financial year;
Chanda Kochhar, Managing Director & CEO
N. S. Kannan
K. Ramkumar
Vishakha Mulye
Rajiv Sabharwal
100:1
67:1
67:1
67:1
64:1
(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;
The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer and Company
Secretary ranged between 12.0% and 15.0%.
(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 12.0%.
(iv) The number of permanent employees on the rolls of company;
The number of employees, as mentioned in the section on Managements Discussion & Analysis is 74,096. Out of this,
the number of employees on permanent rolls of the company is 72,175, including employees in overseas locations.
(v) The explanation on the relationship between average increase in remuneration and company performance;
The Bank follows prudent remuneration practices under the guidance of the Board and the BGRNC. The Banks approach
to remuneration is intended to drive meritocracy within the framework of prudent risk management. Remuneration is
linked to corporate performance, business performance and individual performance.
The Bank has a judicious and prudent approach to compensation and does not use compensation as the sole lever to
attract and retain employees. Employee compensation takes into account a mix of external market pay and internal
equity. The total compensation is a prudent mix of fixed pay and variable pay. The proportion of variable pay to total
compensation is higher at senior levels and lower at junior levels.
The increase in remuneration is a function of factors outlined above. The performance of the company has bearing on
the quantum of variable pay declared for employees across levels.
The profit before collective contingency and related reserve and tax was ` 157.96 billion for fiscal 2016 compared to
` 158.20 billion for fiscal 2015. The average increase in the remuneration of employees was around 9.0% in fiscal 2016
compared to 10.0% in fiscal 2015. Further the senior management of the Bank did not receive performance bonus for
fiscal 2016. Performance bonus was paid to employees in the grades of Deputy General Manager and below only.
In fiscal 2016, the weak global economic environment, the sharp downturn in the commodity cycle and the gradual
nature of the domestic economic recovery has adversely impacted the borrowers in certain sectors like iron and steel,
mining, power, rigs and cement. While the banks are working towards resolution of stress on certain borrowers in these
sectors, it may take some time for solutions to be worked out, given the weak operating and recovery environment. In
view of the above, the Bank has on a prudent basis made a collective contingency and related reserve of ` 36.00 billion
towards exposures to these sectors. This is over and above provisions made for non-performing and restructured loans
as per Reserve Bank of India (RBI) guidelines.
In view of the above, the Banks profit after tax (PAT) was ` 97.26 billion in FY2016 compared to ` 111.75 billion in FY2015.
40
(vi) Comparison of the remuneration of the Key Managerial Personnel (KMP) against the performance of the company;
For the FY2016, the KMPs were paid around 0.22% of the PAT.
(vii) variations in the market capitalisation of the company, price earnings ratio as at the closing date of the current
financial year and previous financial year and percentage increase or decrease in the market quotations of the
shares of the company in comparison to the rate at which the company came out with the last public offer in
case of listed companies;
March 31, 2015
1,829.03
16.33
1,376.06
14.13
67.8%
25.9%
Price earnings multiple is the ratio of market price per share to earnings per share.
(viii) 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 in the salaries of total employees other than the Key Managerial Personnel for fiscal
2016 was around 9.0%, while the average increase in the remuneration of the Key Managerial Personnel was in the range
of 12.0% to 15.0%.
(ix) Comparison of each remuneration of the Key Managerial Personnel against the performance of the company;
The ratio of the remuneration of each KMP to the PAT of the Bank is given below:
Chanda Kochhar, Managing Director & CEO
N. S. Kannan
K. Ramkumar
Vishakha Mulye
Rajiv Sabharwal
Rakesh Jha, Chief Financial Officer
P. Sanker, Company Secretary
0.049%
0.033%
0.033%
0.033%
0.031%
0.021%
0.018%
(x) The key parameters for any variable component of remuneration availed by the directors;
The Banks compensation policy and practices are in line with the guidelines issued by the RBI in January 2012. The Bank
undertakes an annual strategic planning exercise where the KPIs are fixed for the WTDs by the BGRNC. These KPIs, in
addition to financial parameters, include parameters related to risk and compliance. At the end of the financial year, the
performance of the Bank as well as performance of each WTD based on their respective KPIs (including those pertaining
to compliance and risk) is presented to the BGRNC. Based on the performance assessment by the BGRNC, the variable
component of the remunerations for the WTDs is recommended to and approved by the Board.
(xi) The ratio of the remuneration of the highest paid director to that of the employees who are not directors but
receive remuneration in excess of the highest paid director during the year;
Not applicable
(xii) Affirmation that the remuneration is as per the remuneration policy of the company.
Yes
41
Directors Report
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
indicating the activities to be undertaken by the Company and recommendation of the amount of expenditure to be
incurred on such activities, reviewing and recommending the annual CSR plan to the Board, making recommendations
to the Board with respect to the CSR initiatives, policies and practices of the ICICI Group, monitoring the CSR activities,
implementation and compliance with the CSR Policy and reviewing and implementing, if required, any other matter
related to CSR initiatives as recommended/suggested by RBI or any other body.
Composition
At March 31, 2016, the Corporate Social Responsibility Committee comprised four Directors including two independent
Directors, the Government Nominee Director and the Managing Director & CEO and was chaired by M. S. Ramachandran,
an independent Director. There were three Meetings of the Committee during the year. The details of the composition of
the Committee and attendance at its Meetings are set out in the following table:
Name of Member
M. S. Ramachandran, Chairman
Tushaar Shah1
Alok Tandon
Chanda Kochhar
1.
Details about the policy developed and implemented by the company on corporate social responsibility initiatives
taken during the year
The CSR policy has been hosted on the website of the Company http://www.icicibank.com/managed-assets/docs/aboutus/ICICI-Bank-CSR-Policy.pdf.
The Annual Report on CSR activities is annexed herewith as Annexure E.
V. Credit Committee
Terms of Reference
The functions of the Committee include review of developments in key industrial sectors, major credit portfolios and
approval of credit proposals as per the authorisation approved by the Board.
Composition
At March 31, 2016, the Credit Committee comprised three Directors including two independent Directors and the Managing
Director & CEO and was chaired by the Managing Director & CEO. There were 23 Meetings of the Committee during the
year. The details of the composition of the Committee and attendance at its Meetings are set out in the following table:
Name of Member
Chanda Kochhar (Chairperson w.e.f. July 1, 2015)
K. V. Kamath (upto close of business hours on June 30, 2015)
Homi Khusrokhan
M. S. Ramachandran
42
43
Directors Report
VIII. Information Technology Strategy Committee
Terms of Reference
The functions of the Committee are to approve strategy for Information Technology (IT) and policy documents, ensure
that IT strategy is aligned with business strategy, review IT risks, ensure proper balance of IT investments for sustaining
the Banks growth, oversee the aggregate funding of IT at Bank-level, ascertain if the management has resources to
ensure the proper management of IT risks and review contribution of IT to business.
Composition
At March 31, 2016, the IT Strategy Committee comprised three Directors including two independent Directors and the
Managing Director & CEO and was chaired by Homi Khusrokhan, an independent Director. There were four Meetings of
the Committee held during the year. The details of the composition of the Committee and attendance at its Meetings are
set out in the following table:
Name of Member
Homi Khusrokhan, Chairman
K. V. Kamath (upto close of business hours on June 30, 2015)
V. Sridar
Chanda Kochhar
44
issued from time to time, review redressal and resolution of grievances of shareholders, debenture holders and other
security holders, delegation of authority for opening and operation of bank accounts for payment of interest, dividend
and redemption of securities and the listing of securities on stock exchanges.
Composition
At March 31, 2016, the Stakeholders Relationship Committee comprised three Directors including two independent
Directors and was chaired by Homi Khusrokhan, an independent Director. There were four Meetings of the Committee
during the year. The details of the composition of the Committee and attendance at its Meetings are set out in the
following table:
Name of Member
Homi Khusrokhan, Chairman
V. Sridar
N. S. Kannan
P. Sanker, Senior General Manager (Legal) is the Company Secretary of the Bank and acts as the Compliance Officer
of the Bank in accordance with the requirements of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015. 76 shareholder complaints received in fiscal 2016 were processed. At
March 31, 2016, no complaints were pending.
45
Directors Report
XIII. General Body Meetings
The details of General Body Meetings held in the last three years are given below:
General Body Meeting
Day, Date
Time
Venue
Twenty-First AGM
12:00 noon
Twentieth AGM
1:00 p.m.
Nineteenth AGM
1:15 p.m.
The details of the Special Resolutions passed in the General Meetings held in the previous three years are given below:
General Body Meeting
Day, Date
Resolution
Postal Ballot
Special Resolution was passed through postal ballot during fiscal 2016 vide Postal Ballot Notice dated March 10, 2016
under Section 110 of the Companies Act, 2013 pertaining to amendment to the Employees Stock Option Scheme.
The Bank followed the procedure as prescribed under the Companies (Management and Administration), Rules, 2014, as
amended and Secretarial Standard 2 issued by the Institute of Company Secretaries of India. The Members were provided
the facility to cast their votes through electronic voting (e-voting) or through postal ballot. The Board of Directors of the
Company, appointed Alwyn Dsouza of Alwyn Dsouza & Co., Company Secretaries, as the Scrutinizer for conducting the
postal ballot voting process. The scrutinizer submitted his report to the Chairman after the completion of the scrutiny
of the postal ballots (including e-voting). Considering the combined results of the Postal Ballot via postal ballot forms
and e-voting facility, the resolution was approved on April 22, 2016. The results were declared on April 25, 2016 and
communicated to the stock exchanges and displayed on the Banks website www.icicibank.com. The details of the voting
pattern is given below:
Resolution
Amendment to the
Employees Stock
Option Scheme
Total number
of votes polled
% of votes
polled on
outstanding
shares
Votes cast in
favour of the
Resolution
Votes cast
against the
Resolution
% of Votes
in favour on
votes polled
% of votes
against on
votes polled
Invalid votes
3,602,690,566
61.97
3,457,458,223
145,232,343
95.97
4.03
188,617
XIV. Disclosures
1. There are no materially significant transactions with related parties i.e. directors, management, subsidiaries or
relatives conflicting with the Banks interests. The Bank has no promoter.
2. No penalties or strictures have been imposed on the Bank by any of the Stock Exchanges, the Securities & Exchange
Board of India (SEBI) or any other statutory authority, for any non-compliance on any matter relating to capital
markets, during the last three years.
3. In terms of the Whistle Blower Policy of the Bank, no employee of the Bank has been denied access to the Audit
Committee.
46
Venue
Twenty-Second AGM
Monday,
July 11, 2016
12:00 noon
Financial Year
Book Closure
532174
&
6321741
ICICIBANK
IBN
47
Directors Report
The bonds issued in domestic market comprise of privately placed bonds and also 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.
High `
BSE
Low `
Volume
High `
331.25
329.15
317.40
317.40
314.10
279.40
290.00
279.30
273.60
263.00
217.15
237.45
331.25
302.40
304.50
283.25
285.05
269.85
249.25
267.35
260.25
246.35
222.70
183.35
205.10
183.35
22,367,383
13,912,269
28,922,338
23,215,372
24,230,371
32,100,937
11,782,249
12,380,404
29,342,304
23,257,588
56,129,418
32,247,202
309,887,835
331.15
329.30
317.75
317.45
314.05
279.30
290.05
279.55
273.90
263.00
217.20
237.50
331.15
NSE
Low `
Volume
Total Volume on
BSE and NSE
302.30
245,184,776
304.60
216,014,004
283.15
332,143,422
285.00
270,967,092
269.95
286,993,903
249.10
301,016,092
267.10
168,271,739
260.45
189,413,838
246.40
234,104,424
223.10
316,957,199
183.00
543,577,573
204.95
378,617,400
183.00 3,483,261,462
267,552,159
229,926,273
361,065,760
294,182,464
311,224,274
333,117,029
180,053,988
201,794,242
263,446,728
340,214,787
599,706,991
410,864,602
3,793,149,297
The reported high and low closing prices and volume of ADRs of ICICI Bank traded during fiscal 2016 on the NYSE are
given below:
Month
April 2015
May 2015
June 2015
July 2015
August 2015
September 2015
October 2015
November 2015
December 2015
January 2016
February 2016
March 2016
Fiscal 2016
48
High (USD)
Low (USD)
Number of
ADS traded
10.94
10.84
10.56
10.47
10.38
8.81
9.21
8.74
8.37
7.64
6.42
7.16
10.84
10.16
10.30
9.36
9.35
8.51
8.19
8.57
7.81
7.22
6.48
5.18
6.12
5.18
156,428,721
142,753,084
216,107,534
128,940,720
167,182,281
176,311,999
170,305,507
174,907,808
175,381,754
219,631,696
429,945,596
255,974,959
2,413,871,659
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, 2015 to March 31, 2016 is given in the following chart:
120.00
100.00
80.00
60.00
40.00
20.00
Mar/16
Feb/16
Jan/16
Dec/15
Nov/15
Oct/15
Sep/15
Aug/15
Jul/15
Jun/15
May/15
Apr/15
0.00
ICICI Bank
Fiscal 2014
Shares of
face value ` 10
1,014
77,655
Fiscal 2015
Shares of
face value ` 10
706
38,382
Shares of
face value ` 2
564
153,150
Fiscal 2016
Shares of
face value ` 2
1,114
314,890
As required under Regulation 40(9) of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, a certificate is obtained every six months from a practising Company Secretary that all
transfers have been completed within the stipulated time. The certificates are filed with BSE and NSE.
In terms of SEBI circular no. D&CC/FITTC/CIR-16 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 by a firm of Chartered Accountants, 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. Certificates 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.
49
Directors Report
Physical Share Disposal Scheme
With a view to mitigate the difficulties experienced by physical shareholders in disposing off their shares, ICICI Bank,
in the interest of investors holding shares in physical form (upto 250 shares of face value of ` 2 each) has instituted a
Physical Share Disposal Scheme. The scheme was started in November 2008 and continues to remain open. Interested
shareholders may contact the R&T Agent, 3i Infotech Limited for further details.
3i Infotech Limited
International Infotech Park
Tower 5, 3rd Floor
Vashi Railway Station Complex
Vashi, Navi Mumbai 400 703
Maharashtra, India
Tel No. : +91-22-6792 8000
Fax No. : +91-22-6792 8099
E-mail : [email protected]
Queries relating to the operational and financial performance of ICICI Bank may be addressed to:
Rakesh Jha/Anindya Banerjee/Nayan Bhatia
ICICI Bank Limited
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
Tel No. : +91-22-2653 7144
Fax No. : +91-22-2653 1175
E-mail : [email protected]
Debenture Trustees
Pursuant to Regulation 53 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the names and contact details of the debenture trustees for the public issue bonds and privately
placed bonds of the Bank are given below:
Bank of Maharashtra
Legal Dept.
"1501", Lokmangal
Shivaji Nagar,
Pune - 411 005
Tel. No: +91- 020 - 2553 6256
[email protected]
The details are available on the website of the Bank at the link http://www.icicibank.com/Personal-Banking/investments/
icici-bank-bonds/index.page.
50
Information on Shareholding
Shareholding pattern of ICICI Bank at March 31, 2016
Shareholder Category
Deutsche Bank Trust Company Americas (Depositary for ADS holders)
FIIs, NRIs, Foreign Banks, Foreign Companies, OCBs and Foreign Nationals
Insurance Companies
Bodies Corporate (including Government Companies)
Banks & Financial Institutions
Mutual Funds
Individuals, HUF and Trusts
NBFCs Registered with RBI
Provident Fund / Pension Fund
Total
Shares
% holding
1,466,169,782
2,295,147,894
888,935,954
167,028,036
6,206,786
619,626,671
352,911,607
180,043
18,561,657
5,814,768,430
25.21
39.47
15.29
2.87
0.11
10.66
6.07
0.00
0.32
100.00
No. of
shares
% to total no. of
shares
1,466,169,782
598,147,787
322,026,107
130,051,772
70,388,556
58,900,000
2,645,684,004
25.21
10.29
5.54
2.24
1.21
1.01
45.50
Shareholders of ICICI Bank with more than one percent holding at March 31, 2016
Name of the Shareholder
Deutsche Bank Trust Company Americas (Depositary for ADS holders)
Life Insurance Corporation of India
Dodge and Cox International Stock Fund
Europacific Growth Fund
Carmignac Gestion A\C Carmignac Patrimoine
Aberdeen Global Indian Equity (Mauritius) Limited
Total
No. of Folios
No. of Shares
Upto 1,000
1,001 5,000
5,001 10,000
10,001 50,000
50,001 & above
Total
931,900
47,478
3,375
2,522
1,692
986,967
94.42
4.81
0.34
0.26
0.17
100.00
175,386,931
91,954,293
23,904,675
53,663,475
5,469,859,056
5,814,768,430
3.02
1.58
0.41
0.92
94.07
100.00
51
Directors Report
Commodity price risk or foreign exchange risk and hedging activities
The foreign exchange risk position including bullion is managed within the ` 10.00 billion net overnight open position
(NOOP) limit approved by the Board of Directors. The Bank does not undertake positions in commodities. The Bank
primarily has floating rate linked assets. Wholesale liability raising takes place in US dollar or other currencies via bond
issuances, bilateral loans, syndicated / club loans as well as refinance from Export Credit Agencies (ECA) which may be
at a fixed rate or floating rate linked. In case of fixed rate fund raising in US dollars, the interest rate risk is hedged via
interest rate swaps wherein the Bank moves to a floating rate index in order to match the asset profile. In case of fund
raising in non US dollar currencies, the foreign exchange risk is hedged via foreign exchange swaps or currency interest
rate swaps.
Plant Locations Not applicable
Address for Correspondence
P. Sanker
Senior General Manager (Legal) & Company Secretary
or
Ranganath Athreya
General Manager & Joint Company Secretary
ICICI Bank Limited
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
Tel No. : +91-22-2653 8900
Fax No. : +91-22-2653 1230
E-mail : [email protected]
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 Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
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.
2,887
191,453
190,940
3,400
Note: The above does not include complaint redressed within 1 working day.
52
Nil
Nil
Nil
Nil
250,000 options granted in April 2014 would vest in equal proportions on April 30, 2017 and April 30, 2018.
Options granted in September 2015 would vest in equal proportions on April 30, 2018 and April 30, 2019. The
unvested options would lapse upon termination of employment due to retirement (including pursuant to early/
voluntary retirement scheme).
Options granted prior to April 1, 2014 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, other than the following:
Options granted in April 2009 vested in a graded manner over a five year period with 20%, 20%, 30% and 30% of the
grant vesting in each year, commencing from the end of 24 months from the date of the grant.
The grant approved by the Board at its Meeting held on October 29, 2010 (for which RBI approval for grant to
wholetime Directors was received in January 2011), vested 50% on April 30, 2014 and the balance 50% vested on
April 30, 2015.
Options granted in September 2011 vest in a graded manner over a five year period with 15%, 20%, 20% and 45%
of the grant vesting in each year, commencing from end of 24 months from the date of grant.
The price for options granted (except for grants approved on October 29, 2010 where the grant price was the average
closing price of the ICICI Bank stock on the stock exchange during the six months upto October 28, 2010) is equal to the
closing price on the stock exchange which recorded the highest trading volume preceding the date of grant of options
in line with the SEBI regulations.
Pursuant to the postal ballot resolution dated April 22, 2016 approved by the Members, the definition of exercise period
has been modified from the period commencing from the date of vesting of Options and ending on the later of (i) the
tenth anniversary of the date of grant of Options or (ii) the fifth anniversary of the date of vesting of Options to the period
commencing from the date of vesting of Options and ending on the tenth anniversary of the date of vesting of Options.
53
Directors Report
The BGRNC at its Meeting held on April 28, 2016 approved a grant of approximately 34 million options for fiscal 2016 to
eligible employees and wholetime Directors of ICICI Bank and its subsidiaries (options granted to wholetime Directors of
ICICI Bank being subject to RBI approval). Each option confers on the employee a right to apply for one equity share of
face value of ` 2 of ICICI Bank at ` 244.60 which was the closing price on the stock exchange which recorded the highest
trading volume in ICICI Bank shares on April 27, 2016. The grant price is calculated as per the SEBI regulations.
Particulars of options granted by ICICI Bank upto April 28, 2016 are given below:
Options granted till April 28, 2016 (excluding options forfeited/lapsed)
Options forfeited/lapsed
Options vested
Options exercised
Total number of options in force
Number of shares allotted pursuant to exercise of options
Extinguishment or modification of options
Amount realised by exercise of options (`)
423,619,395
61,946,430
329,304,290
200,135,180
223,484,215
200,135,180
Nil
14,716,308,943
Note:
For details on option movement during the year refer Financials-Schedule 18-Employee Stock Option Scheme. 31,838,150 options
vested during FY2016 and ` 2,824,199,624 was realised by exercise of options during FY2016.
The following Key Managerial Personnel (other than wholetime Directors) and Senior Management Personnel were
granted ESOPs in the range of 64,600-495,000, aggregating to 3,361,150 in April 2016. This excludes special grant of
stock options approved by RBI in November 2015.
Sr. No. Name
Grade
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Vijay Chandok
Rakesh Jha
Maninder Juneja
Shilpa Kumar
Sanjay Chougule
K. M. Jayarao
Anita Pai
T. K. Srirang
Sujit Ganguli
Anirudh Kamani
Anil Kaul
Kusal Roy
Anup Kumar Saha
P. Sanker
Supritha Shirish Shetty
Saurabh Singh
G. Srinivas
Rahul Vohra
No employee was granted options during any one year equal to or exceeding 0.05% of the issued equity shares of ICICI
Bank at the time of the grant.
The diluted earnings per share (EPS) pursuant to issue of shares on exercise of options calculated in accordance with
AS-20 was ` 16.65 in fiscal 2016 compared to basic EPS of ` 16.75. The Bank recognised a compensation cost of ` 0.8
million in fiscal 2016 based on the intrinsic value of options. However, if the Bank had used the fair value of options based
54
on the binomial tree model, compensation cost in fiscal 2016 would have been higher by ` 3.73 billion and proforma
profit after tax would have been ` 93.54 billion. On a proforma basis, the Banks basic and diluted earnings per share
would have been ` 16.11 and ` 16.02 respectively.
The key assumptions used to estimate the fair value of options granted during fiscal 2016 are given below:
Risk-free interest rate
Expected life
Expected volatility
Expected dividend yield
7.58% to 8.19%
3.16 to 5.78 years
30.67% to 32.77%
1.62% to 2.11%
Expected early exercise of options is estimated based on the historical stock option exercise pattern of the Bank. Expected
volatility is based on historical volatility determined based on observed market prices of the Banks publicly traded equity
shares.
The weighted average fair value of options grantedduring fiscal 2016 is ` 100.50 (March 31, 2015: ` 90.09).The weighted
average exercise price of options exercised during fiscal 2016 is ` 161.16 (March 31, 2015: ` 150.66)
55
Directors Report
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
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 has made the organisations 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
M. K. Sharma
Chairman
56
ANNEXURE A
Performance and financial position of subsidiaries and associates of the
Bank as on March 31, 2016
Name of the entity
Net assets1
% of total
Amount
net assets
(` in million)
Parent
ICICI Bank Limited
95.4%
897,355.9
95.5%
97,262.9
0.9%
0.4%
1.6%
0.0%
0.0%
0.2%
5.9%
3.7%
0.0%
0.7%
0.0%
8,668.6
3,942.3
15,292.1
5.3
115.5
1,975.6
55,116.6
34,846.6
12.8
6,372.5
255.6
1.9%
2.3%
1.8%
0.0%
(0.0%)
(0.2%)
16.2%
5.0%
0.0%
3.2%
(0.0%)
1,954.7
2,357.4
1,798.5
0.5
(18.5)
(212.3)
16,504.6
5,074.5
0.3
3,256.9
(3.2)
3.8%
4.0%
0.0%
0.0%
0.0%
36,143.9
37,789.8
93.7
127.7
128.9
0.0%
1.1%
(0.0%)
(0.5%)
0.0%
35.5
1,120.5
(4.8)
(477.5)
28.3
0.1%
482.0
(0.1%)
(108.7)
(3.6%)
(33,556.4)
(7.3%)
(7,469.3)
0.0%
(0.0%)
0.0%
0.1%
0.1%
(0.0%)
13.7
(4.4)
12.2
90.6
79.5
(17.6)
(13.1%)
100.0%
(124,061.9)
941,107.1
(19.1%)
100.0%
(19,474.7)
101,799.6
Subsidiaries
Indian
ICICI Securities Primary Dealership Limited
ICICI Securities Limited
ICICI Home Finance Company Limited
ICICI Trusteeship Services Limited
ICICI Investment Management Company Limited
ICICI Venture Funds Management Company Limited
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Prudential Trust Limited
ICICI Prudential Asset Management Company Limited
ICICI Prudential Pension Funds Management Company Limited
Foreign
ICICI Bank UK PLC
ICICI Bank Canada
ICICI International Limited
ICICI Securities Holdings Inc.
ICICI Securities Inc.
Foreign
NIL
Minority interests
Associates
Indian
Fino Pay Tech Limited
I-Process Services (India) Private Limited
NIIT Institute of Finance Banking and Insurance Training Limited
ICICI Merchant Services Private Limited
India Infradebt Limited
India Advantage Fund III
India Advantage Fund IV
Foreign
NIL
Joint Ventures
NIL
Inter-company adjustments
Total
1.
57
Directors Report
ANNEXURE B
FORM NO. MR-3
Secretarial Audit Report
For the financial year ended 31st March, 2016
(Pursuant to Section 204(1) of the Companies Act, 2013 and Rule no. 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014)
To,
The Members,
ICICI Bank Limited
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by ICICI Bank Limited (hereinafter called the Company). 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 Companys books, papers, minute books, forms and returns filed and other records
maintained by the company, the information provided by the company, its officers, agents and authorised representatives
during the conduct of secretarial audit, the explanations and clarifications given to us and the representations made by
the Management, we hereby report that in our opinion, the company has, during the audit period covering the financial
year ended on 31st March, 2016 generally complied with the statutory provisions listed hereunder and also that the
Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to
the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records made available to us and
maintained by the Company for the financial year ended on 31st March, 2016 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contract (Regulation) Act, 1956 (SCRA) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder 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)
(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, 1992 and 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, 2009
and amendments from time to time;
(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999 and The Securities and Exchange Board of India (Share Based Employees Benefits)
Regulations, 2014;
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
(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 Company during the audit period);
58
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable to the
Company during the audit period) and
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; (Not applicable to the
Company during the audit period)
(i) The Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992
(j) The Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994
(k) The Securities and Exchange Board of India (Debenture Trustee) Regulations, 1993
(l) The Securities and Exchange Board of India (Custodian of Securities) Regulations, 1996
(m) The Securities and Exchange Board of India (Investment Advisers) Regulations, 2013
(n) The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014
(a) Banking Regulation Act, 1949, Master Circulars, Notifications and Guidelines issued by the RBI from time to time.
(b) The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest, 2002
(c) Recovery of debts due to banks and financial institutions Act, 1993
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India with respect to Board and General
meetings.
(ii) The Listing Agreements entered into by the Company with BSE Limited and National Stock Exchange of India Limited
read with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
uring the period under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines,
D
standards etc. mentioned above. However, as against the prescribed 2% threshold, the Company has spent 1.6% of the
average net profits of the company for the last three financial years (as calculated in accordance with the Companies Act,
2013) towards Corporate Social Responsibility.
We further report that:
he Board of Directors of the Company is duly constituted with proper balance of executive Directors, non-executive
T
Directors and independent Directors. The changes in the composition of the Board of Directors that took place during the
period under review were carried out in compliance with the provisions of the Act.
dequate notice was given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were
A
sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications
on the agenda items before the meeting and for meaningful participation at the meeting.
Decisions at the Board Meetings were taken unanimously.
uring the period under review, the Company deposited with IEPF an amount of ` 3,020,190 being the value of demand
D
drafts returned undelivered pertaining to dividend outstanding for the financial year 2006-2007.
e further report that there are adequate systems and processes in the Company commensurate with the size and
W
operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
59
Directors Report
We further report that during the audit period the Company had following events which had bearing on the Companys
affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards etc.
1. Sale of 9% Shareholding in ICICI Lombard General Insurance Company Limited to Fairfax Financial Holdings
Limited.
2. Sale of 6% Shareholding in ICICI Prudential Life Insurance Company Limited to Premji Invest & Affiliates (4.0%)
and Compassvale Investments Pte Ltd (2.0%) an indirect wholly owned subsidiary of Temasek.
For Parikh Parekh & Associates
Company Secretaries
Place: Mumbai
Date : April 29, 2016
Signature:
P. N. Parikh
Partner
FCS No: 327 CP No: 1228
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.
60
ANNEXURE A
To,
The Members
ICICI Bank Limited
Our report of even date is to be read along with this letter.
1. Maintenance of Secretarial record is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct
facts are reflected in Secretarial records. We believe that the process and practices, we followed provide a reasonable
basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Where ever required, we have obtained the Management representation about the Compliance of laws, rules and
regulations and happening of events etc.
5. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the
responsibility of management. Our examination was limited to the verification of procedure on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
For Parikh Parekh & Associates
Company Secretaries
Place: Mumbai
Date : April 29, 2016
Signature:
P. N. Parikh
Partner
FCS No: 327 CP No: 1228
61
Directors Report
ANNEXURE C
Details of material related party transactions at an aggregate level for the year ended March 31, 2016
Sr. Nature of contracts/
No. transactions
1.
2.
3.
4.
5.
Short-term lending by
the Bank
Guarantee given by
the Bank
Standby letters of
credit given by the
Bank
Purchases of
investment securities
of third parties
Nature of
relationship
Duration of
contracts
Subsidiary
Subsidiary
Various
maturities
Various
maturities
Various
maturities
1.04 years
Subsidiary
2.99 years
Subsidiary
Subsidiary
At market price
At market price
4,237.6
2,409.0
Subsidiary
At market price
712.9
Subsidiary
At market price
2,475.3
Subsidiary
Subsidiary
At market price
At market price
1,355.8
529.5
Others
At market price
995.6
Subsidiary
Various
maturities
8.
Sale of loans
Subsidiary
Various
maturities
9.
Risk participation
Subsidiary
Various
maturities
Subsidiary
1.55 years
Current account
deposits
62
149,110.0
Purchase of loans
10.
8,605.0
1,025.0
7.
Sale of investment
securities of third
parties
4,990.0
Commission on guarantee
at negotiated rate
Commission on guarantee
at negotiated rate
6.
` in million
607.8
5,650.3
2,091.2
6,876.2
588.0
1,003.6
784.7
5,634.1
12.
13.
14.
Principal amounts of
foreign currencies
transactions including
derivatives such as
swaps and forwards
contracts
Nature of
relationship
Duration of
contracts
Subsidiary
Various
maturities
Various
maturities
At market rates
185,500.0
At market rates
17,103.0
At market rates
3,065.3
3 years
At market rates
Commission for corporate
agency services to solicit
and procure the sale and
distribution of the policies
Commission for corporate
agency services to solicit
and procure the sale and
distribution of the policies
Charges for publicity and
advertisements at branches
and ATMs
636.4
3,312.5
600.7
Subsidiary
Administration,
publicity and
marketing support
income
Expenses towards
service provider
arrangements
15.
Interest expenses
16.
Interest income
3 years
6 years
Subsidiary
20 years
Associate
1 year
Associate
10 years
Others
Subsidiary
Interest on bonds at
applicable rates
Interest on loans and
advances at applicable rates
` in million
727.7
4,290.7
2,830.9
2,089.0
19,411.0
720.9
M. K. Sharma
Chairman
63
Directors Report
ANNEXURE D
FORM NO. MGT-9
Extract of Annual Return
as on the financial year ended on March 31, 2016
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the
Companies (Management and Administration) Rules, 2014]
L65190GJ1994PLC021012
January 5, 1994
ICICI Bank Limited
Company limited by shares/Indian Non-Government Company
Landmark,
Race Course Circle,
Vadodara - 390 007
Tel.: +91-265-3263701
Email : [email protected]
Yes
3i Infotech Limited
International Infotech Park
Tower 5, 3rd Floor
Vashi Railway Station Complex
Vashi, Navi Mumbai - 400 703
Tel. : +91-22-6792 8000
Fax : +91-22-6792 8098
Email : [email protected]
1.
% to total turnover
of the Company
64191
100%
The Bank is a publicly held banking company engaged in providing a wide range of banking and financial services
including retail banking, corporate banking and treasury operations.
64
2.
3.
4.
5.
6.
7.
8.
9.
% of
shares
held
Applicable
Section
Subsidiary
Company
100.00%
2(87)
Subsidiary
Company
100.00%
2(87)
Subsidiary
Company
100.00%
2(87)
Subsidiary
Company
100.00%
2(87)
U65990MH2000PLC124773
Subsidiary
Company
100.00%
2(87)
U67200MH2000PLC129408
Subsidiary
Company
63.82%
2(87)
U66010MH2000PLC127837
Subsidiary
Company
67.66%
2(87)
U72900MH1993PLC131900
Subsidiary
Company
100.00%
2(87)
U67120MH1995PLC086241
Subsidiary
Company
100.00%
2(87)
CIN/GLN*
U65922MH1999PLC120106
Holding/
Subsidiary/
Associate
65
Directors Report
Sr.
Name and address of the Company
No.
10.
11.
12.
13.
14.
15.
16
17.
18.
19.
66
% of
shares
held
Applicable
Section
Subsidiary
Company
100.00%
2(87)
Subsidiary
Company
100.00%
2(87)
U65991MH1999PLC119683
Subsidiary
Company
100.00%
2(87)
U72200MH1989PLC166901
Subsidiary
Company
100.00%
2(87)
U99999DL1993PLC054135
Subsidiary
Company
51.00%
2(87)
U74899DL1993PLC054134
Subsidiary
Company
50.80%
2(87)
U66000MH2009PLC191935
Subsidiary
Company
100.00%
2(87)
U65923MH2012PLC237365
Associate
Company
31.00%
2(6)
U72900MH2006PLC162656
Associate
Company
27.05%
2(6)
U74140MH2009PTC194399
Associate
Company
19.00%
2(6)
CIN/GLN*
Holding/
Subsidiary/
Associate
Sr.
Name and address of the Company
No.
20.
21.
22.
23.
24.
25.
26.
CIN/GLN*
Holding/
Subsidiary/
Associate
% of
shares
held
Applicable
Section
U72900MH2005PTC152504
Associate
Company
19.00%
2(6)
U80903DL2006PLC149721
Associate
Company
18.79%
2(6)
U74899DL1994PLC060077
Associate
Company
30.00%
2(6)
L27202GJ1962PLC040548
Associate
Company
24.70%
2(6)
U65999RJ2002PTC017380
Associate
Company
24.30%
2(6)
U67120MH1990NPL058298
Associate
Company
20.00%
2(6)
L25114KA1973PLC002455
Associate
Company
26.39%
2(6)
67
Directors Report
IV. SHAREHOLDING PATTERN (Equity Share Capital Break-up as percentage of Total Equity)
(i) Category-wise Shareholding
Sl
Category of shareholders
No.
Demat
Physical
Total
% of Total
Shares
Demat
Physical
Total
% of Total
Shares
% change
during the
year
Promoters
(1) Indian
a)
Individual / HUF
b)
Central Govt
c)
State Govt(s)
d)
Bodies Corporate
e)
Banks/Financial Institutions
f)
Any Other
(2) Foreign
a)
NRIs - Individuals
b)
Other - Individuals
c)
Bodies Corporate
d)
Banks/Financial Institutions
e)
Any Other
Public Shareholding
(1) Institutions
a)
Mutual Funds
477,932,370
69,260
478,001,630
8.25
619,557,411
69,260
619,626,671
10.66
2.41
b)
3,401,295
109,200
3,510,495
0.06
6,097,586
109,200
6,206,786
0.11
0.05
c)
Central Govt
3,624,764
390
3,625,154
0.06
7,989,386
390
7,989,776
0.14
0.07
d)
State Govt(s)
e)
f)
Insurance Companies
772,186,079
1,100
772,187,179
13.32
888,934,854
1,100
888,935,954
15.29
1.97
g)
FIIs
116,800 2,256,881,838
38.81
(2.17)
h)
i)
Other (specify)
j)
2,375,508,640
117,300 2,375,625,940
925,840
1,991,665
0.03
1,247,465
925,840
2,173,305
0.04
0.00
4,609,825
0.08
4,224,966
4,224,966
0.07
(0.01)
18,561,657
18,561,657
0.32
0.32
1,222,590 3,804,600,953
65.43
2.65
Foreign Banks
1,065,825
FII - DR
4,609,825
3,638,328,798
40.98 2,256,765,038
1,223,090 3,639,551,888
62.78 3,803,378,363
(2) Non-Institutions
a
Bodies Corporate
i Indian
125,663,508
1,422,515
127,086,023
2.19
142,762,650
1,375,025
144,137,675
2.48
0.29
3,000
3,000
0.00
3,000
3,000
0.00
232,753,765
29,197,395
261,951,160
4.52
273,077,696
27,585,585
300,663,281
5.17
0.65
36,601,690
144,475
36,746,165
0.63
39,455,517
144,475
39,599,992
0.68
0.05
180,043
180,043
0.00
0.00
13,012,726
1,075
13,013,801
0.22
979,094
1,075
980,169
0.02
(0.21)
3,554,026
3,554,026
0.06
3,576,465
77,000
3,653,465
0.06
0.00
ii Overseas
b
Individuals
i Individual shareholders
holding nominal share
capital upto Rs.1 lakh
ii Individual shareholders
holding nominal share
capital excess of Rs.1 lakh
Others (specify)
Trust
Directors & their Relatives
(Resident)
68
Demat
Physical
Total
% of Total
Shares
Demat
Physical
Total
% of Total
Shares
% change
during the
year
73,540
73,540
0.00
81,549
81,549
0.00
0.00
12,040,344
391,100
12,431,444
0.21
19,302,543
312,485
19,615,028
0.34
0.12
Clearing Member
8,345,722
8,345,722
0.14
14,900,585
14,900,585
0.26
0.11
6,254,001
36,710
6,290,711
0.11
7,981,395
33,305
8,014,700
0.14
0.03
Foreign Companies
143,200
143,200
0.00
143,200
143,200
0.00
Foreign Bodies - DR
3,500,605
3,500,605
0.06
12,025,008
12,025,008
0.21
0.15
Non-Resident Indians
441,799,927
31,339,470
473,139,397
8.16
514,322,545
29,675,150
543,997,695
9.36
1.19
30,897,740 4,348,598,648
74.79
3.84
NRI - DR
Sub-total (B) (2)
Total Public Shareholding
(B) = (B)(1)+(B)(2)
c
Sl
Category of shareholders
No.
4,080,128,725
32,562,560 4,112,691,285
70.94 4,317,700,908
1,684,553,360
0 1,684,553,360
29.06 1,466,169,782
0 1,466,169,782
25.21
(3.84)
5,764,682,085
32,562,560 5,797,244,645
100.00 5,783,870,690
30,897,740 5,814,768,430
100.00
# Provident Fund/Pension Funds and NBFCs registered with RBI (reported only for March 31, 2016) are two new categories introduced
in the new shareholding format prescribed by SEBI under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Percentages have been rounded off to the nearest decimals.
(iv) Shareholding of top ten shareholders (other than Directors, Promoters and Holders of ADRs)
Shareholding at the beginning of the
year (April 1, 2015)
Top Ten Shareholders
Life Insurance Corporation of India
Dodge and Cox International Stock Fund
Europacific Growth Fund
Carmignac Gestion a\c Carmignac Patrimoine
Aberdeen Global Indian Equity (Mauritius) Limited
Stichting Depository Apg Emerging Markets Equity Pool
Bajaj Holdings and Investment Ltd
Government Pension Fund Global
Government of Singapore
Vanguard Emerging Markets Stock Index fund, a series
of Vanguard International Equity Index Fund
HDFC Standard Life Insurance Company Limited
Carmignac Gestion a\c Carmignac Investissement
SBI Life Insurance Co Ltd
Centaura Investments (Mauritius) PTE Ltd
Merrill Lynch Capital Markets Espana S.A. S.V.
No of
shares
% of total shares
of the company
470,276,753
257,911,785
164,528,802
90,881,374
62,100,000
50,909,085
32,609,200
48,964,722
8.11
4.45
2.84
1.57
1.07
0.88
0.56
0.84
598,147,787
322,026,107
130,051,772
70,388,556
58,900,000
50,159,097
49,392,070
48,768,891
47,695,409
10.29
5.54
2.24
1.21
1.01
0.86
0.85
0.84
0.82
50,820,891
44,939,640
45,745,960
42,705,445
37,045,215
29,655,662
0.88
0.78
0.79
0.74
0.64
0.51
43,188,899
40,243,430
3,73,69,602
34,584,286
31,699,538
9,815,657
0.74
0.69
0.64
0.59
0.55
0.17
Note:
1. The above excludes shares held by Deutsche Bank Trust Company Americas in its capacity of Depositary for ADS holders. The
shares of the Bank are substantially held in dematerialised form, and are traded on a daily basis and hence the date wise increase/
decrease in shareholding is not indicated.
69
Directors Report
(v) Shareholding of Directors and Key Managerial Personnel
Sl.
Name of the Director
No.
1
2.
3.
4.
5.
6.
7.
8.
9.
M. K. Sharma
At July 1, 2015@
At the end of the year
Dileep Choksi
At the beginning of the year
At the end of the year
Homi Khusrokhan
At the beginning of the year
At the end of the year
M. S. Ramachandran
At the beginning of the year
At the end of the year
Chanda Kochhar
At the beginning of the year
April 20, 2015 Allotment
April 23, 2015 Allotment
April 30, 2015 Allotment
September 14, 2015 Allotment
March 17, 2016 Allotment
March 31, 2016 Allotment
At the end of the year
N. S. Kannan
At the beginning of the year
At the end of the year
K. Ramkumar
At the beginning of the year
April 29, 2015 Sale
At the end of the year
Vishakha Mulye
At January 19, 2016@
March 16, 2016 Sale
March 18, 2016 Sale
March 21, 2016 Sale
March 22, 2016 Sale
March 23, 2016 Sale
March 28, 2016 Sale
March 29, 2016 Sale
March 30, 2016 Sale
March 31, 2016 Sale
At the end of the year
Rajiv Sabharwal
Cumulative shareholding
during the year
No. of
shares
% of total shares
of the company#
No. of
shares
% of total shares
of the company#
50,000
50,000
0.00
0.00
50,000
50,000
0.00
0.00
2,500
2,500
0.00
0.00
2,500
2,500
0.00
0.00
3,500
3,500
0.00
0.00
3,500
3,500
0.00
0.00
1,300
1,300
0.00
0.00
1,300
1,300
0.00
0.00
1,844,625
100,000
75,000
200,000
120,000
27,000
77,000
2,443,625
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.04
1,844,625
1,944,625
2,019,625
2,219,625
2,339,625
2,366,625
2,443,625
2,443,625
0.03
0.03
0.03
0.04
0.04
0.04
0.04
0.04
426,125
426,125
0.01
0.01
426,125
426,125
0.01
0.01
321,426
(321,426)
0
0.01
0.01
0.00
321,426
0
0
0.01
0.00
0.00
889,385
(75,000)
(50,000)
(25,000)
(25,000)
(25,000)
(25,000)
(25,000)
(25,000)
(25,000)
5,89,385
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
889,385
814,385
764,385
739,385
714,385
689,385
664,385
639,385
614,385
589,385
5,89,385
0.02
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0
29,500
30,000
65,000
124,500
0.00
0.00
0.00
0.00
0.00
0
29,500
59,500
124,500
124,500
0.00
0.00
0.00
0.00
0.00
Note:
@ M. K. Sharma was appointed as Chairman effective July 1, 2015 and Vishakha Mulye was appointed as executive Director effective
January 19, 2016.
# Indicates negligible percentage as a % of total shares of the Company.
The cumulative shareholding column reflects the balance as on day end.
70
Sl.
Name of the Key Managerial Personnel
No.
1.
Rakesh Jha
At the beginning of the year
April 30, 2015 Sale
May 7, 2015 Allotment
May 14, 2015 Sale
At the end of the year
2.
P. Sanker
At the beginning of the year
At the end of the year
Cumulative Shareholding
during the year
No. of
shares
% of total shares
of the company#
No. of
shares
% of total shares
of the company#
18,750
(12,750)
20,000
(12,500)
13,500
0.00
0.00
0.00
0.00
0.00
18,750
6,000
26,000
13,500
13,500
0.00
0.00
0.00
0.00
0.00
5,000
5,000
0.00
0.00
5,000
5,000
0.00
0.00
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
` in Crores
Secured Loans
excluding deposits
Unsecured
Loans
Deposits
Total
Indebtedness
12,905.68
3.53
12,909.21
1,59,511.67
2,471.90
161,983.58
172,417.35
2,475.43
174,892.78
Reduction
Net Change
37,477.16
37,477.16
8,892.55
26,194.58
35,087.14
(8,892.55)
11,282.58
2,390.03
4,013.12
11.04
4,024.17
170,794.26
2,582.08
173,376.34
174,807.38
2,593.13
177,400.50
71
Directors Report
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Wholetime Directors and/or Manager:
Chanda
Kochhar
Sl.
Particulars of Remuneration
No.
1.
N. S.
Kannan
K.
Ramkumar
Vishakha
Rajiv
Mulye1 Sabharwal
Amount in `
Total (`)
Gross Salary
(a)
Salary as per provisions contained in
section 17(1) of the Income-tax Act, 1961
Salary and Allowances for Fiscal 2016 - (A)
Bonus paid in Fiscal 2016 including deferred
bonuses for previous three years - (B)
39,081,252 26,423,293
26,253,960
22,855,786 15,320,773
15,320,773
66,905,092
3,979,418
3,505,242
4,576,000
33,1672
4,085,404
16,179,231
120,326,510
0
0
0
0
0
0
0
0
0
0
0
0 16,388,900 136,715,410
0
0
0
0
0
0
0
0
0
65,916,456 45,249,308
46,150,733
1. Vishakha Mulye has joined the services of the Bank on December 2, 2015. Pursuant to approval granted by Reserve Bank of India
(RBI) vide its letter dated January 15, 2016, Vishakha Mulye assumed office as executive Director with effect from January 19, 2016.
2. Does not include superannuation perquisite, since it is cashed out and hence included in Salary and Allowances for fiscal 2016 - (A).
3. Being a Banking Company, the provisions of Banking Regulation Act, 1949 apply to the Bank and the remuneration of every wholetime
Director is subject to the approval of RBI. The remuneration is however well within the limits prescribed under the Companies Act, 2013.
Particulars of
Remuneration
K. V.
Kamath
M. K.
Sharma
Dileep
Homi
M. S.
Choksi Khusrokhan Ramachandran
380,000
860,000
1,420,000
2,200,000
750,000
1,130,000
2,250,000
3,110,000
1,420,000
Total
Amount
Tushaar
Shah
V. K.
Sharma
V.
Sridar
1,940,000
700,000
860,000
1,600,000
9,960,000
2,200,000
1,940,000
700,000
860,000
1,600,000
3,000,000
12,960,000
2,200,000
1,940,000
700,000
860,000
1,600,000
12,960,000
Fee for attending
Board/Committee
meetings
Commission
Others, please
specify (see Note 1)
Total (1)
1,130,000
3,110,000
1,420,000
222,561,502
Note 1: Pursuant to Section 35B of the Banking Regulation Act, 1949 the appointment/re-appointment and remuneration payable to the
Chairman of a Bank is subject to approval of RBI. K. V. Kamath was Chairman of the Bank till close of business hours on June 30, 2015.
72
The annual remuneration as approved by RBI for K. V. Kamath was ` 3,000,000 and for the period April 1, 2015 June 30, 2015, the
remuneration paid was ` 750,000. M. K. Sharmas appointment as Chairman effective July 1, 2015 alongwith an annual remuneration
of ` 3,000,000 was approved by RBI vide its letter dated June 30, 2015. Accordingly M. K. Sharma was paid remuneration for the
period July 1, 2015 March 31, 2016 aggregating to ` 2,250,000.
Note 2: Alok Tandon is a non-executive Director nominated by the Government of India. As a Government Nominee Director he is
not eligible to be paid any sitting fees, he is only entitled to reimbursement of expenses for attending Board/Committee Meetings.
Note 3: Being a Banking Company, the provisions of Banking Regulation Act, 1949 apply to the Bankand any payments to nonexecutive/independent Directors other than sitting fees can be paid only with the approval of RBI. Independent Directors are paid
only sitting fees except for Chairman who is paid an annual remuneration with the approval of RBI as mentioned in Note 1. All
non-executive/independent Directors are entitled to reimbursement of expenses for attending Board/Committee Meetings. The
remuneration is however well within the limits prescribed under the Companies Act, 2013.
Sl.
Particulars of Remuneration
No.
1.
Gross Salary
(a) Salary as per provisions contained in section 17(1) of the Incometax Act, 1961
Salary and Allowances for Fiscal 2016 - (A)
Bonus Paid in Fiscal 2016 - (B)
2
3
4
5
Total (`)
14,373,512
4,149,852
16,831,023
5,009,256
31,204,535
9,159,108
2,523,186
3,775,479
6,298,665
0
0
0
0
4,314,400
0
0
0
4,314,400
0
0
0
21,046,550
25,615,758
46,662,308
B.
C.
COMPANY
Penalty
Punishment
Compounding
DIRECTORS
Penalty
Punishment
Compounding
OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding
Section
of the
Companies
Act
Brief
Description
Details of Penalty/
Punishment/
Compounding
fees imposed
None
None
None
M. K. Sharma
Chairman
73
Directors Report
ANNEXURE E
Annual Report on Corporate Social Responsibility activities
1. A brief outline of the companys CSR policy, including overview of projects or programs proposed to be undertaken
and a reference to the web-link to the CSR policy and projects or programs
Corporate Social Responsibility (CSR) has been a long-standing commitment at ICICI Bank. The Banks contribution
to social sector development includes several pioneering interventions and is implemented through the involvement
of stakeholders within the Bank and through the broader community. The Bank established the ICICI Foundation for
Inclusive Growth (ICICI Foundation) in 2008 with a view to significantly expand the 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.
The CSR Policy of the Bank sets the framework guiding the Banks CSR activities. It outlines the governance structure,
operating framework, monitoring mechanism, and CSR activities that would be undertaken. The CSR Committee is
the governing body that articulates the scope of CSR activities and ensures compliance with the CSR policy. The
Banks CSR activities are largely focused in the areas of education, health, skill development and rural development
and other activities as the Bank may choose to select in fulfilling its CSR objectives.
The CSR policy was approved by the Committee in July 2014, and subsequently was put up on the Banks website.
Web-link to the Banks CSR policy:
http://www.icicibank.com/managed-assets/docs/about-us/ICICI-Bank-CSR-Policy.pdf
2. The Composition of the CSR Committee
The Banks CSR Committee comprises three independent Directors and the Managing Director & CEO of the Bank,
and is chaired by an independent Director. The composition of the Committee is set out below:
M. S. Ramachandran, Chairman;
Tushaar Shah;
Alok Tandon;
Chanda Kochhar.
The functions of the Committee include: review of CSR initiatives undertaken by the ICICI Group and ICICI Foundation;
formulation and recommendation to the Board of a CSR Policy indicating the activities to be undertaken by the
company and recommendation of the amount of the expenditure to be incurred on such activities; reviewing and
recommending the annual CSR plan to the Board; making recommendations to the Board with respect to the CSR
initiatives, policies and practices of the ICICI Group; monitoring the CSR activities, implementation of and compliance
with the CSR Policy; and reviewing and implementing, if required, any other matter related to CSR initiatives as
recommended/suggested by RBI or any other body.
3. Average net profit of the company for last three financial years
The average net profit of the company for the last three financial years calculated as specified by the Companies Act
2013 for FY2016 was ` 106.05 billion.
4. Prescribed CSR Expenditure (two per cent of the amount as in item 3 above)
The prescribed CSR expenditure requirement for FY2016 was ` 2.12 billion.
Total amount spent towards CSR during FY2016 was ` 1.72 billion.
74
(c) Manner in which the amount spent during the financial year is detailed below:
S.
No
CSR Project or
activity identified
Sector in which
the project is
covered
1.
Projects of ICICI
Foundation for
Inclusive Growth
1. Promoting
education,
employment
enhancing
vocational
skills,
livelihood
enhancement
projects,
2. Eradication
of hunger,
poverty and
malnutrition;
promoting
preventive
healthcare
2.
Rural development
projects including
financial inclusion
and financial
literacy
Contribution
towards relief and
welfare in calamity
affected areas
Gift a Livelihood
programme
Supporting
research and
capacity building
in education sector
Rural
development
3.
4.
5.
Contribution to
Prime Ministers/
Chief Ministers
Relief Fund
Livelihood
enhancement
Promoting
education
Projects or programs
1. Local area or other
2. Specify the state
and district where
projects or programs
was undertaken
Amount
outlay
(budget)
project or
program
wise
(` mn)
22 skill training
450.0
centres located
in Bengaluru,
Bhubaneswar,
Chennai, Coimbatore,
Delhi, Durg,
Guwahati, Hyderabad,
Indore, Jaipur, Kochi,
Kolkata, Lucknow,
Mumbai, Mysore,
Nagpur, Narsobawadi,
Patna, Pune, Trichy,
Vijaywada and
Zirakpur.
Elementary education
projects in Rajasthan
and Chhattisgarh.
Healthcare
programmes
including in Baran
(Rajasthan).
Pan-India
1,400.0
Amount spent
on the projects
or programs
Sub-heads
1. Direct
expenditure
on
projects or
programs
2. Overheads
(` mn)
450.0
Cumulative
expenditure
upto the
reporting
period
(` mn)
710.0
1,196.6
2,334.3
Amount spent
direct or through
implementing
agency*
Amount spent
through ICICI
Foundation for
Inclusive Growth.
Chennai
38.7
76.5
Direct
Pan-India
10.0
25.7
Direct
54.0
5.1
59.1
1. Teach to Lead
in Mumbai to
support their
Teach for India
fellowship
programme.
2. Praxis Business
School, Kolkata,
supporting
a chair for
research for the
banking sector.
75
Directors Report
S.
No
CSR Project or
activity identified
Sector in which
the project is
covered
Projects or programs
1. Local area or other
2. Specify the state
and district where
projects or programs
was undertaken
Amount
outlay
(budget)
project or
program
wise
(` mn)
6.
Health sector
related projects
Promoting
preventive
healthcare
Rajasthan
7.
Financial
counsellling
Promoting
education
At multiple centres
15.0
7.7
16.9
8.
Others
41.0
6.1
12.0
Amount spent
on the projects
or programs
Sub-heads
1. Direct
expenditure
on
projects or
programs
2. Overheads
(` mn)
0.9
Cumulative
expenditure
upto the
reporting
period
(` mn)
7.1
Amount spent
direct or through
implementing
agency*
Support to
hospitals in
Jaipur towards
maintenance,
cleaning and other
requirements
Disha Trust set
up to assist
consumers in
financial distress
and provide
counselling.
6. In case the company has failed to spend the 2% of the average net profits of the last three financial years or any
part thereof, the company shall provide the reasons for not spending the amount in its Board report.
The amount spent in FY2016 was ` 1.72 billion, 10.3% higher compared to ` 1.56 billion spent towards CSR in
FY2015. The amount spent in FY2016 was 1.6% of the average net profits of the last three financial years. The lower
spend vis--vis the plan was due to lower than anticipated project requirements and delay in implementation of
certain planned spends.
7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in
compliance with CSR objectives and Policy of the company.
The CSR Committee hereby confirms that the implementation and monitoring of CSR activities is in compliance with
CSR objectives and the CSR Policy of the company.
Chanda Kochhar
Managing Director & CEO
76
M.S. Ramachandran
CSR Committee Chairman
Auditors Certificate on
Corporate Governance
To the Members of ICICI Bank Limited
Managements responsibility
The Banks management takes full responsibility of the compliance of the conditions of corporate governance as stipulated
in the regulations mentioned above.
Auditors responsibility
Our examination was limited to procedures and implementation 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 conducted our engagement in accordance with the Guidance Note on Audit Reports and Certificates for Special
Purposes issued by the Institute of Chartered Accountants of India. Our responsibility is to certify based on the work
done.
Conclusion
In our opinion, and to the best of our information and according to the explanations given to us, we certify that the
Bank has complied with the conditions of Corporate Governance as specified in clause 49 of the Listing Agreement and
regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of regulation 46 and paragraphs C, D and E of Schedule V of
the Listing Regulations, as applicable.
We further state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or
effectiveness with which management has conducted the affairs of the Bank.
Restrictions on use
This certificate is issued solely for the purposes of complying with the aforesaid Regulations and may not be suitable for
any other purpose.
For B S R & Co. LLP
Chartered Accountants
Firms Registration No: 101248W/W-100022
Mumbai
May 26, 2016
Venkataramanan Vishwanath
Partner
Membership No: 113156
77
Business Overview
ECONOMIC OUTLOOK
During fiscal 2016, the global economic environment remained challenging and was marked by three key factors: divergent
monetary policy in advanced and emerging economies, slowdown in growth in China and decline in global commodity
prices. These trends led to significant volatility in global financial markets and currency depreciation in emerging market
economies. The Indian economy continued to witness a gradual recovery, with improvements in key macroeconomic
parameters. Inflation moderated, interest rates came down, fiscal consolidation continued, foreign investments were
strong and the current account deficit remained stable. Policy measures were taken in the areas of infrastructure, foreign
investments and financial sector reforms and programmes were launched for financial inclusion and inclusive growth.
However, the global slowdown, commodity cycle, gradual pace of domestic recovery and high leverage in the corporate
sector led to muted credit growth and an increase in non-performing loans, including slippages from restructured loans,
for the Indian banking sector.
For a detailed discussion of economic developments in fiscal 2016, please refer Managements Discussion & Analysis.
BUSINESS REVIEW
Retail Banking
ICICI Bank has been a pioneer in introducing innovative products and services for its customers. Many of these products
and services have been industry firsts, thus becoming trendsetters. ICICI Bank has made digital technology core to its
strategy and has developed solutions which have made banking simple for its customers. Due to these solutions, the
Bank is an integral part of the lives of many of its customers who use the Banks applications for their diverse needs, even
beyond banking. The Banks solutions are also designed to cater to different life-cycle needs of its customers.
Last year, the Bank became the first in the country to introduce contactless debit and credit cards using Near-Field
Communication (NFC) technology. This enabled its customers to make electronic payments by just waving the contactless
card near the NFC-enabled merchant terminal. In fiscal 2016, the Bank unveiled the countrys first contactless mobile
payment solution to make in-store payments using smartphones. This solution provides the improved convenience of
Touch & Pay to the Banks credit and debit card customers, superseding the use of a physical card or cash, and is available
on Pockets, the Banks digital wallet. ICICI Bank also became the first bank globally to launch mVisa, a new mobile
payment solution from VISA. With this service, users of Pockets can make cashless payments from their smartphones
using their debit card by simply scanning an mVisa Quick Response (QR) code at a merchant location without swiping
the card at a POS machine. This service provides customers the convenience of speed to complete a transaction along
with enhanced security as the card remains in the custody of the customer.
Pockets gained the distinction of becoming the largest e-wallet launched by a bank with over 3.6 million downloads.
Interestingly, 80% of the registered users on Pockets are new customers to the Bank. With Pockets, users can instantly
download the e-wallet, fund it from any bank account in the country and start transacting immediately.
ICICI Bank has been at the forefront of mobile banking technology. It was one of the first banks to launch a mobile
banking application in India. The Bank launched the latest version of iMobile in May 2015. Today, iMobile is the most
comprehensive banking application offering over 150 services, many of which are industry firsts. Some of the features
available in the latest version are tagging transactions as favourites, direct call to call centre and iTrack to track all
deliverables from the Bank on the mobile.
In February 2016, the Bank launched a unique campaign, ICICI Appathon, a mobile app development challenge. This
campaign seeks to foster innovation and provides a platform for tapping into the immense talent of a techno-innovative
generation to bring new ideas and develop the next generation of banking applications on mobile phones. The Bank will
incorporate some of the winning ideas into its digital roadmap.
78
For the Bank, communication is an important tool to stay connected with its customers. The Bank realises that customers
interact with it through multiple channels, leading to the possibility of inconsistent communication. This leads to
a poor customer experience. To address this challenge, the Bank has invested in building an omni-channel real-time
communication architecture. This architecture is integrated with all its channels like call centre, emails, SMS, internet
banking, ATM, social media and branch.
This year, the Bank also launched the Smart Vault, a fully automated state-of-the-art locker service available 24x7. The
Smart Vault uses robotic technology to enable access to the lockers from the safe vault. Customers can conveniently
access their lockers at any time of the day, in the comfort of a secure lounge where the locker automatically comes up
to the customer. The Smart Vault is equipped with multi-layered state-of-the-art security systems including biometric
authentication. The launch of the Smart Vault marks a milestone in the Indian banking industry as it joins a select group
of overseas markets which has access to this unique robotic vault. This innovation is an exemplary illustration of the
potential of Make in India, as it has been designed and manufactured by Indian partners.
Keeping in mind customer convenience, ICICI Bank launched Money2World, a fully online outward remittance service for
resident Indians. This service is available even to non-account holders of ICICI Bank. Individuals can now transfer money
online from any bank account in India to any bank account overseas in 16 major currencies, in a convenient and fully
secure manner.
In fiscal 2016, ICICI Bank became the first private sector bank in the country to have a mortgage portfolio of more than
` 1 trillion. To commemorate the achievement, the Bank announced two breakthrough initiatives in India. Express Home
Loans is the countrys first fully online process for sanctioning home loans. This service provides online approval for
home loans within eight working hours. The second initiative helps individuals taking home loans for under construction
projects to get subsequent disbursements, after the first disbursement. Through iMobile, customers can upload the
demand letter from the builder and the proof of their contribution. The Bank assesses the demand and makes the
disbursement without the borrower having to visit the branch, thereby saving time and enhancing convenience for the
customers.
ICICI Bank also launched its new range of co-branded credit cards in association with the Italian luxury sports car
manufacturer, Ferrari. The Ferrari Credit Cards by ICICI Bank have been specially designed for discerning customers, who
are enthusiasts of the iconic luxury brand.
The Bank expanded its network to 4,450 branches and 13,766 ATMs at March 31, 2016. The Banks automation footprint
has also multiplied. At March 31, 2016, the Bank had 110 Touch Banking branches across 33 cities. The Bank has also
deployed more than 1,300 self-service kiosks for accepting cash, where anyone including non-customers of the Bank can
deposit cash in an ICICI Bank account in a completely automated manner with the account receiving instant credit, rather
than manually depositing cash at the teller counter. The Bank has also deployed 516 Insta Banking self-service kiosks at
its branches. Customers can access these kiosks by typing their debit card number and PIN number. These self-service
kiosks enable the customers to pre-process their transactions, reducing their waiting time at the branch.
These initiatives in terms of network expansion as well as technological upgrades for enhanced customer experience
have helped the Bank to achieve robust growth in its retail business. The Banks savings account deposits grew by 16.9%
to ` 1,342.30 billion at March 31, 2016. The Banks retail loan portfolio (including business banking and rural banking)
grew by 23.3% year-on-year at March 31, 2016 and constituted 46.6% of total loans.
79
Business Overview
locations, which constituted 52% of the Banks total branch network and included 573 branches in hitherto unbanked
locations.
The Bank has developed customised financial products and services to cater to a wide range of rural customers including
farmers, traders, processors, as well as rural entrepreneurs. During fiscal 2016, the Bank issued 90,000 Kisan Credit Cards
(KCCs) and renewed the limits for 45,000 KCCs.
The Bank caters to the financial needs of women entrepreneurs through its Self-Help Group (SHG) programme as a part
of its microfinance initiatives. During fiscal 2016, the Bank impacted the lives of close to 2.5 million women by extending
loans under the SHG-Bank linkage programme. ICICI Bank also continues to be a significant lender to the microfinance
institutions for on-lending to customers.
As of March 31, 2016, the Bank had opened over 20 million Basic Savings Bank Deposit Accounts (BSBDA) through
its branch and Business Correspondent (BC) network. The Bank has actively pursued the agenda of seeding Aadhaar
numbers in customers accounts and has communicated with its customers through branches, e-mails, SMSs and letters.
As of March 31, 2016, the Bank has seeded over 7.0 million accounts with Aadhaar numbers.
The Bank has contributed significantly in promoting the Pradhan Mantri Jan-Dhan Yojana (PMJDY). It has opened 2.9
million accounts under the PMJDY scheme as of March 31, 2016, which is the highest among private sector banks.
About 89% of these accounts were opened in rural India. The Bank has also issued RuPay cards to these account
holders, which are inter-operable across various customer service points as well as ATMs of other banks. The Bank
has imparted financial literacy to its customers and encouraged transactions through their savings accounts, using
these RuPay cards.
The Bank has actively participated in the three schemes promoted under the governments Jan Suraksha Yojana (JSY).
These include the Pradhan Mantri Jeevan Jyoti Bima Yojana providing life insurance, the Pradhan Mantri Suraksha Bima
Yojana for accident insurance and Atal Pension Yojana for providing pension benefits. The Bank facilitated enrollment
of beneficiaries through its branches as well as digital channels like internet banking, SMS and phone banking. The
Banks effort in enrolling beneficiaries for the insurance schemes through SMS was much appreciated by the Ministry of
Finance, Government of India, and directed other banks to follow the Banks approach. The Bank has enrolled a total of
2.9 million customers under the three JSY schemes.
The Banks rural portfolio grew by 25.2% to ` 300.91 billion during fiscal 2016.
80
Wholesale Banking
The Wholesale Banking Group (WBG) provides customised solutions to corporate clients by analysing their specific
business and financial needs. It provides an array of financial solutions for working capital finance, export finance, trade,
transaction and commercial banking, foreign exchange and derivative products and rupee as well as foreign currency
term loans. The group comprises several teams focused on specific areas to facilitate specialisation and customised
product offerings.
The Corporate Banking Group is WBGs principal coverage group. It develops new corporate relationships and enhances
the existing ones through continuous engagements. It acts as a single point of contact for clients to cater to their
requirements across businesses. The relationship team collaborates with relevant groups within the Bank to address
specific needs of clients.
The Commercial Banking Group manages banking transactions, trade based requirements and cash management needs
of corporate customers, thereby improving client servicing capabilities at the operational level. This results in granularity
and stability of revenues and enhanced visibility of clients cash flows for the Bank, while being in proximity to clients
locations. The group maintains superior customer service through its network of mega branches. It also helps in growing
the Banks transaction banking business with the help of constantly evolving technology-enabled solutions.
The Syndications Group works in synergy with our corporate banking and project finance teams. It is one of the market
leaders in the loan syndication segment for corporate and project finance transactions. It specialises in the primary
and secondary loan distribution market and leverages strong relationships with market participants like banks, financial
institutions, non-bank finance companies (NBFCs), insurance companies and other financial entities. It also closely
interfaces with other market participants like private equity players and sovereign wealth funds.
The relationship teams also work with the Markets Group to address the currency and interest rate risk in client businesses;
and support clients in arranging market related funding products.
In fiscal 2016, the operating environment for the corporate sector remained challenging due to high leverage, shortfalls
in cash flow generation, continued weak corporate investment activity, gradual nature of the economic recovery, the
global economic slowdown and the decline in commodity prices which had an impact on borrowers in commoditylinked sectors such as iron and steel. The Wholesale Banking Group focused on proactive monitoring of the portfolio, as
well as on generating new income streams and developing new processes and products by leveraging technology. The
incremental lending during fiscal 2016 was largely focused on higher rated corporates. During fiscal 2016, a dedicated
group was created for special focus on borrowers requiring proactive steps for resolution and recovery. The Banks
approach to resolution and recovery encompasses working with sponsors for deleveraging through sale of assets and
businesses, working with all stakeholders to ensure improvement in the operations of borrowers and cash flow generation
and enforcement of contractual rights.
A framework for managing concentration risk with limits for lending to individual borrowers/groups based on factors
like rating of borrower, vintage of the company, vintage of relationship with the borrower, the industry of operations
and ownership (public sector vs. private sector) was put in place. The Bank has strengthened the credit monitoring
function and established a Credit Monitoring Group to further enhance its ability to develop early warning mechanisms
by proactive monitoring and analysis of the portfolio and account-level trends.
Project Finance
A challenging operating environment led to a slowdown in new project commitments and implementation, coupled with
operating issues with existing investments. During fiscal 2016, the Government undertook a series of reforms and policy
initiatives to help revive the infrastructure sector. In the power sector, the UDAY Scheme was announced to turnaround
ailing state government owned power distribution companies; allowing captive coal utilization for medium-term power
purchase agreements (PPAs) and implementation of scheme for gas linkages by way of reverse bidding to revive stranded
gas projects were some of the key initiatives. Taken together, these steps are expected to help the power sector in India
to recover gradually. In addition, the renewable energy segment has also gained momentum and new investments have
81
Business Overview
been announced. The Bank pursued lending opportunities in the roads and ports sectors and to a limited extent in the
power sector, particularly transmission and distribution.
In roads, execution under the National Highway Development Program (NHDP) has picked up speed in fiscal 2016. The
government has set an aggressive target of building 30 km/day of highways and has awarded several road projects
during the year. To mitigate the limitations of Build Operate Transfer (BOT) projects, the Government has introduced the
Hybrid Annuity Model which allows for greater risk sharing between the public and private sector. To provide a further
fillip to private participation, a few other key reforms were announced. These include allowing the private sector to exit
projects after two years of completion of construction, introduction of a one-time fund infusion for stalled road projects
and extension of concession period or upfront compensatory annuities for delays not attributable to the concessionaire,
amongst others. The sector is poised for growth on the back of renewed Government focus and an improving macroeconomic sentiment.
Railways, which was predominantly government-owned, has been opened up for private investments and is focusing
on improving passenger amenities. The public-private partnership mode has been envisaged for investments via redevelopment of various identified railway stations and unlocking of associated commercial real estate. This is expected
to open up opportunities for greater private sector participation.
The infrastructure and core sector developments are critical to Indias growth and the Banks sectoral expertise ensures
tapping opportunities to invest judiciously and for the long-term.
International Banking
ICICI Banks strategy for international banking continues to be focused on three pillars which include providing end-toend solutions for the international banking requirements of its Indian corporate clients; leveraging economic corridors
between India and the rest of the world; and establishing ICICI Bank as the preferred bank for Non-Resident Indians
(NRIs) in key global markets. The International Banking Group has positioned itself as the preferred partner for global
corporations seeking to expand their presence in India. The Bank also strives to build stable and diversified international
funding sources and strong syndication capabilities to support its corporate and investment banking businesses.
The Bank continued to sharpen its focus in fiscal 2016 on managing risks in its international operations due to the volatile
global business environment. It also focused on diversifying the funding profile of its international operations, expanding
its trade finance business and building relationships with global corporates doing business in India. ICICI Bank was
named Indias Best Borrower in FinanceAsias 2015 Fixed Income Research Poll. The Bank continued to rationalise the
capital invested in its overseas operations. During fiscal 2016, ICICI Bank Canada repatriated equity and preference share
capital aggregating CAD 87.1 million. ICICI Banks foreign branches also repatriated a portion of their retained earnings,
resulting in exchange rate gains of ` 9.41 billion.
India continues to be the highest recipient globally of inward remittances. ICICI Bank continues to be a leader in the
remittance market by offering innovative and customer friendly products and customised service offerings that meet
the requirements of the widely dispersed NRI population. In fiscal 2016, the Banks key platform for inward remittances,
Money2India was launched on Facebook. The mobile app for the same was enhanced to provide full-service capability
and the online service was extended to United Arab Emirates.
The Banks international footprint consists of subsidiaries in the United Kingdom and Canada, branches in the United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Dubai International Finance Centre, Qatar Financial Centre, China and
South Africa; and representative offices in the United Arab Emirates, Bangladesh, Malaysia and Indonesia. The Banks
wholly-owned subsidiary, (ICICI Bank UK Plc), has eight branches in the United Kingdom and a branch each in Belgium
and Germany. ICICI Bank Canada also has eight branches. During fiscal 2016, the Bank opened its first branch in China and
in South Africa. ICICI Bank also set up its International Banking Unit (IBU), in Indias first International Financial Services
Centre (IFSC), at GIFT City, Gandhinagar in Gujarat. The Bank envisages the IBU to be at the core of its international
strategy aimed at offering trade, treasury and credit solutions to its corporate customers.
82
Treasury
ICICI Banks treasury operations comprise the Asset Liability Management Group, Markets Group and Proprietary Trading
Group.
The Asset Liability Management Group actively manages the Banks liquidity and securities portfolio held for compliance
with statutory and regulatory requirements. The Group focuses on optimisation of yield on the overall portfolio, while
maintaining an appropriate portfolio duration given the volatile interest rate environment.
The Markets Group offers foreign exchange and derivative solutions to clients and continues to be a major player in the
segment. The Bank provides global coverage of markets with a detailed insight into local markets. It provides clients
with regular market updates as well as quantitative and qualitative research on topics, related to macroeconomics and
financial markets. The Bank has also launched the gold metal loan product for domestic jewellery manufacturers in fiscal
2016 as restrictions imposed on gold imports were relaxed by the RBI.
The Proprietary Trading Group manages trading positions within the approved risk limits. The Bank is a leading player in
private placements of bonds/debentures. It has dedicated sales coverage of institutional debt investors across various
segments.
The Bank continues to receive awards and recognition in this area. It has been recognised as the Best Foreign Exchange
Bank India by FinanceAsia in its 2015 Country Awards for Achievement and the Derivatives House of the Year India
by The Asset in its 2015 Triple A Private Banking, Wealth Management and Investment Awards.
Risk Management
Risk is an integral part of the banking business and the Bank aims at achieving an appropriate trade-off between risk
and returns. Key risks that the Bank is exposed to include credit, market, liquidity, operational (including information
security), legal, compliance and reputation risks, among others. The Bank has put in place an Enterprise Risk Management
framework that articulates its risk appetite and details the drill down of the same into a limit framework for various risk
categories. The risk governance framework ensures oversight and accountability, continuous monitoring for vulnerability
mapping and an integrated evaluation for effective risk management.
The Board of Directors has oversight on all the risks assumed by the Bank. The Board has established Committees to
facilitate focused oversight of various risks. These Committees have specific terms of reference. Policies approved from
time to time by the Board of Directors or Committees of the Board constitute the governing framework for each type
of risk. Business activities are undertaken within this policy framework. Independent groups and sub-groups have been
constituted across the Bank to facilitate independent evaluation, monitoring and reporting of various risks. These groups
function independently of the business groups.
Every year, the Risk Committee approves a detailed calendar of reviews. The calendar of reviews include reviews of
risk management policies in relation to various risks, risk profile of the Bank, its overseas banking subsidiaries and key
non-banking subsidiaries, assessment of capital adequacy based on the risk profile of the balance sheet and status with
respect to the implementation of advanced approaches under the Basel framework. The Credit Committee also approves
a detailed calendar of reviews every year covering the Banks exposure to various industries and outlook for those
industries, analysis of non-performing loans, overdues, incremental sanctions and specific review of key portfolios. A
summary of the reviews carried out by the Credit Committee and Risk Committee is reported to the Board of Directors.
The Bank has dedicated groups (Risk Management Group, Compliance Group, Corporate Legal Group, Internal Audit
Group and Financial Crime Prevention and Reputation Risk Management Group) with a mandate to identify, assess and
monitor the Banks principal risks in accordance with well-defined policies and procedures. The Risk Management Group,
Corporate Legal Group and Financial Crime Prevention and Reputation Risk Management Group report to an Executive
Director. The Audit Committee provides direction to and monitors the quality of the compliance and internal audit function.
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Business Overview
The Compliance and Internal Audit Groups have administrative reporting to an Executive Director. These groups are
independent of all business operations and coordinate with representatives of the business units to implement the Banks
risk-management methodologies.
Credit Risk
Credit risk entails the risk of loss that may occur from any partys failure to abide by the terms and conditions of any
financial contract, principally the failure to make required payments to the Bank. All credit risk related aspects are
governed by a Credit and Recovery policy, approved by the Banks Board of Directors. The Credit and Recovery policy
outlines the type of products that can be offered, customer categories, targeted customer profile and the credit approval
process and limits. The Bank measures, monitors and manages credit risk at an individual borrower level and at the
portfolio level for non-retail borrowers. The credit risk for retail borrowers is being managed at portfolio level. The Banks
structured and standardised credit approval process includes a well-established procedure of comprehensive appraisal.
It has also established a Country Risk Management Policy, which addresses the identification, measurement, monitoring
and reporting of country risk.
The credit risk associated with any corporate financing proposal is assessed based on an analysis of the borrower and the
industry in which the borrower operates. The Bank has developed internal credit rating methodologies for rating obligors.
In case of facilities backed by third-party comforts such as corporate guarantees, letters of comfort, put option or shortfall
undertaking, the rating of the borrower for such facilities is anchored to that of the comfort provider. The rating serves
as a key input in the approval as well as post-approval credit processes. The Bank has a framework for conducting asset
reviews. The risk based review framework outlines the review schedule wherein the frequency of asset review is higher
for cases with higher exposure and/or lower credit ratings. These reviews are conducted periodically (quarterly, halfyearly or yearly) based on the review schedule. Relevant industry knowledge is constantly updated through field visits
and interactions with clients, sector regulators and industry experts.
The appraisal and execution of project finance transactions involves a detailed evaluation of technical, commercial,
financial, marketing and management factors and the sponsors financial strength and experience. The Bank identifies
the project risks, mitigating factors and residual risks associated with the project. As a part of its due diligence, the Bank
appoints consultants, including technical advisors, business analysts, legal counsel and insurance consultants, whenever
necessary. Risk mitigating factors in project finance loans include creation of debt service reserves and channelling
project revenues through a trust and retention account. The Banks project finance loans are generally fully secured, and
have full recourse to the borrower. In some cases, the Bank also takes additional credit comforts such as corporate or
personal guarantees from one or more sponsors of the project or a pledge of the sponsors equity holding in the project
company.
The Bank has refined and strengthened its framework for managing concentration risk, including limits/ thresholds with
respect to single borrower and group exposure.
In case of retail loans, sourcing and approval have been segregated to maintain independence. The Credit Risk Management
Group has oversight on the credit risk issues for retail assets including vetting of all credit policies and operating notes
proposed for approval by the Board of Directors or forums authorised by the Board. The Credit Risk Management Group
is also involved in portfolio monitoring for all retail assets and suggesting and implementing policy changes.
The Retail Credit and Policy Group is an independent unit focusing on policy formulation and portfolio tracking and
monitoring. This group also includes the Credit Administration Unit that services various retail business units for
credit underwriting. In addition, there is also a Business Intelligence Unit to provide support for analytics, score card
development and database management. The credit officers evaluate retail credit proposals on the basis of the product
policy vetted by the Credit Risk Management Group and approved by the Committee of Executive Directors. These
criteria vary across product segments but typically include factors like the borrowers income, the loan-to-value ratio
and demographic parameters. Reports from credit bureaus also serve as an important input in making credit decisions.
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The technical valuations in case of residential mortgages are conducted by empanelled valuers or technical teams.
External agencies (field investigation agencies and credit processing agencies) are used to facilitate a comprehensive due
diligence. The process includes visits to offices and homes in case of loans to individual borrowers. In addition, the credit
officer checks a centralised delinquent database and reviews the borrowers profile before disbursements. The Bank also
avails the services of certain fraud-control agencies operating in India to check applications before disbursements.
The Credit Monitoring Group, the Treasury Control and Services Group and the Operations Group monitor operational
adherence to regulations, policies and internal approvals. The Bank has centralised operations to manage operational
risk in most back office processes of the Banks retail loan business. It has established the Financial Crime Prevention
Group as a dedicated and independent group, handling fraud prevention, detection, investigation, monitoring, reporting
and awareness creation functions. The segregation of responsibilities and oversight by groups external to the business
groups ensure adequate checks and balances.
The Banks credit approval authorisation framework is laid down by the Board of Directors. Several levels of credit approval
authorities have been established for corporate banking activities like the Credit Committee of the Board of Directors,
the Committee of Executive Directors (COED), the Committee of Senior Management, the Committee of Executives
(Credit) and the Regional Committee (Credit). The authorisation framework is risk based with lower rated borrowers and/
or larger exposures being escalated to higher committees. Retail Credit Forums and Small Enterprise Group Forums
have been created for approval of retail loans and credit facilities to small enterprises and agriculture based enterprises
respectively. In addition, the Bank conducts programme lending, which involves a cluster-based approach, wherein a
lending programme is implemented for a homogeneous group of individuals/business entities that comply with certain
laid down parameterised norms. All such programmes and applicable limits are pre-approved by the COED. Individual
executives are also delegated with powers to approve lending within the exposure limits set by the Board of Directors,
in case of retail products.
Market Risk
Market risk arises when movements in market factors (foreign exchange rates, interest rates, credit spreads and equity prices)
impact the Banks income or the market value of its portfolios. Exposure to market risk is segregated into two portfoliostrading and structural banking books. Trading portfolios comprise positions arising from market making activity and trading
on own account. Market risk on the trading portfolio is assessed and managed through measures such as net overnight open
position limit, price value of one basis point, value-at-risk and stop loss limits. The structural banking book comprises the nontrading portfolio, which includes the Banks corporate/retail assets and liabilities, the available for sale portfolio and the held
to maturity portfolio. The risks associated with non-trading portfolios are measured through metrics such as the duration of
equity, earnings at risk and liquidity gap limits. The limits are stipulated in our Investment Policy, Asset Liability Management
Policy and Derivatives Policy. These policies are reviewed and approved by the Banks Board of Directors.
The Asset Liability Management Committee (ALCO) comprises the MD & CEO, wholetime Directors and senior executives.
The ALCO meets periodically to review the Banks business profile and its impact on asset liability management. It
determines the asset liability management strategy in light of the current and expected business environment. It reviews
positions of the trading groups and the interest rate and liquidity gap positions on the banking book. The ALCO also sets
deposit and benchmark lending rates. The Market Risk Management Group recommends changes in risk policies and
processes and methodologies for quantifying and assessing market risks. Risk limits including position limits and stop
loss limits for the trading book are reported by the Treasury Control & Services Group and reviewed periodically.
Foreign exchange risk is tracked through the net overnight open position limit. Interest rate risk is measured through the
use of re-pricing gap analysis and duration analysis; and is tracked through interest rate risk limits approved by the ALCO.
The Bank uses various measurement tools of liquidity risk, including the statement of structural liquidity, dynamic liquidity
gap statements, liquidity ratios and stress testing. It maintains diverse sources of liquidity to facilitate flexibility in meeting
funding requirements. Incremental operations in the domestic market are principally funded by accepting deposits from
retail and corporate depositors. The deposits are augmented by borrowings in the short-term inter-bank market and
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Business Overview
through the issuance of bonds, including long-term bonds (for financing infrastructure projects and affordable housing).
Loan maturities and sale of investments also provide liquidity. The Banks international branches are primarily funded by
debt capital market issuances, lines of financing from export credit agencies, syndicated loans, bilateral loans and bank
lines, while its international subsidiaries raise deposits from their local markets.
Operational Risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people or systems, or from
external events. Operational risk includes legal risk but excludes strategic and reputational risks. Operational risk is
inherent in the Banks business activities in both domestic as well as overseas operations and spans a wide spectrum
of issues. Operational risk can result from a variety of factors, including (but not limited to) failure to obtain proper
internal authorisations, improperly documented transactions, failure of operational and information security procedures,
computer systems, software or equipment, fraud, inadequate training and errors committed by employees. The Banks
operational risk is managed through a comprehensive system of internal controls, systems and procedures to monitor
transactions, key back-up procedures and undertaking regular contingency planning. The control framework is designed,
based on categorisation of functions into front-office comprising business groups, middle office comprising credit and
treasury middle offices, back office comprising operations, corporate and support functions.
The Banks operational risk management governance and framework is defined in the Operational Risk Management
(ORM) Policy approved by the Board of Directors. The Policy is applicable across the Bank, including overseas
branches, ensuring a clear accountability and responsibility for management and mitigation of operational risk,
developing a common understanding of operational risk; and helping the business and operation groups to improve
internal controls, thereby reducing the probability and potential impact of losses from operational risks. While
the policy provides a broad framework, detailed standard operating procedures for operational risk management
processes have been established. The Bank has adopted the three lines of defence approach for internal operational
risk management. The business, operation and support functions are responsible for managing the operational
risks inherent in the products, processes, services and activities undertaken by them. A functionally independent
Operational Risk Management Group (ORMG) is the second line of defence, complementing and challenging the
business lines operational risk management activities. The ORMG is responsible for design, implementation and
enhancement of operational risk management framework; and to support business and operations groups in
operational risk management on an on-going basis. The Internal Audit Department (IAD) is the third line of defence,
which undertakes an independent review of the first and second lines. The operational risk management framework
comprises identification and assessment of risks and controls, new products and process approval framework,
measurement through incidents and exposure reporting, monitoring through key risk indicators and mitigation
through process and control enhancement and insurance. The objective of the Banks operational risk management
is to manage and control operational risks within targeted levels of operational risk consistent with the Banks risk
appetite as specified in the ORM Policy.
The Board-level Committees that undertake supervision and review of operational risk aspects are the Risk Committee,
Fraud Monitoring Committee, Audit Committee and Information Technology Strategy Committee. The Bank has also
constituted an Operational Risk Management Committee (ORMC) to oversee internal operational risk management.
The ORM Policy specifies the composition, roles and responsibilities of the ORMC. Other executive level committees
that oversee operational risk related aspects are Product and Process Approval Committee, Outsourcing Committee,
Information Security Committee, Information Technology Steering Committee, Committee of Executive Directors and
Business Continuity Management Steering Committee.
Human Resources
ICICI Bank has always been committed to its employee value propositions called saath aapka which was formally
articulated in 2011.These propositions focus on creating a more enabling workplace, ensuring employee welfare and
offering opportunities to learn and grow.
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Several initiatives focussed on women employees were launched during fiscal 2016. An important initiative is
iWork@Home, which is designed to help the Banks women employees to deal with life-stage related challenges. Under
this initiative, women employees can opt to work from home for up to a year. This period is extendable depending on
circumstances. Employees are provided access to the operating system in a safe and secure manner, thereby creating
a seamless office-like environment. A unique face recognition technology platform has been developed in partnership
with IIT, Delhi for this initiative.
Managerial responsibilities like client interaction, business reviews or training often requires travelling outside ones
neighbourhood limits. In order to support these employees, the Bank bears expenses for the young child and the
caregiver to accompany the woman employee on such outstation travel. This initiative will help our women managers to
balance their professional and motherhood responsibilities.
In another initiative, the Bank launched iTravelSafe, a mobile application, to support women employees. This app tracks
the location of women employees (subject to their consent) while commuting to and from work. On activation of the
tracking option, the app provides easy access to a distress signal through the emergency panic button. Its unique car
sharing feature also helps employees share a ride with colleagues.
Capturing the rich legacy of the ICICI Group, the Bank has launched I-museum, a digital museum, in the form of a
mobile app. The museum captures the theme of: Born out of history to create history. It chronicles the ICICI Groups
rich legacy and celebrates the institutions culture built by its great leaders over six decades. The museum presents the
organisations journey and its deep-rooted linkage with Indias economic growth and progress. The museum provides
employees a unique glimpse into the creation and growth of the ICICI Group.
In December 2015, Chennai faced unprecedented heavy rainfall which flooded several parts of the city. During this
period, the Bank made all efforts to ensure safety and well-being of its employees in the flood affected areas. Field
teams were deployed to ascertain the whereabouts of the employees who could not be contacted and support them
and their families in distress. The Bank ensured timely assistance to the local teams and their families by availing help
from the Indian Coast Guard and the Indian Air Force for the rescue operations. The Bank extended salary advances and
medical help to all employees impacted by floods. Medical camps were set-up to administer prophylactic treatment to
the affected people.
The Bank accords high importance to initiatives which aim at improving the efficiency of employees.Structured handholding programmes for new employees in the frontline relationship and sales teams are conducted for improving
their productivity. In line with this, the Bank continues to leverage the internal role-linked and functional training
academies for its employees to provide the requisite knowledge and skills. Some of the initiatives like ICICI Sales
Academy, Probationary Officers Programme, Young Leaders Programme and the Business Leadership Programme
help sharpen the skillset of new recruits and focus on making them productive right from first day first hour. The
Sales Academy has been one of the Banks key strategic initiatives, ensuring the requisite number of ready and trained
front-end officers. The curriculum and pedagogy followed at the Sales Academy was revamped this year to enhance
focus on important products and regulations.
The Bank also introduced video-based learning modules for its employees. A new learning framework was developed
where content was re-designed to make it more interactive through audio-visual experience-based learning. The Bank
has upgraded its learning management system to host video based content. i-Studio, a custom-made video-conferencing
and web-casting tool, has been extensively used for learning sessions. The tool is also used for engaging with employees.
Given the geographical spread of branches and other work premises, i-Studio has been leveraged by the employee
relations managers to connect with teams on a real-time basis.
An interactive learning portal for the Probationary Officers (PO) Programme was made functional from the August 2015
batch. Its core feature was to ensure technology-based delivery of the PO Programme. The portal was designed to
enhance the learning experience using self-paced e-learning modules, gaming exercises, quizzes, Q&A forums, discussion
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Business Overview
boards and webinar sessions. The portal can be accessed from a range of devices, including laptops, tablets and mobiles.
The programme content has been designed to facilitate a comprehensive learning using interactive modules and casestudies.
The Bank received the Employee Engagement Initiative of the Year award for 2016 at The Asian Bankers International
Excellence in Retail Financial Services 2016 Awards in Hong Kong. The Bank won the award for its unique approach to
hiring and professional development of POs and the implementation of an innovative and structured learning platform
for them.
Information Technology
At ICICI Bank, technology is an integral part of our business strategy serving multiple objectives and plays a key role
in promoting innovations in serving our customers. During fiscal 2016, the focus of the Banks IT strategy has been on
business alignment and engagement, innovation, stability and availability, information security, and risk and compliance.
The Bank continues to invest in advanced technologies and undertake effective utilisation of resources, thereby
delivering a technology architecture that is futuristic. This enables the Bank to provide a secure, superior, seamless and
uniform service experience to our customers across all channels. In order to further enhance the organise-wide focus
on leveraging technology and capitalising on opportunities in the digital space, the Bank has created a Technology and
Digital Group to be headed by a Chief Technology and Digital Officer, which will integrate all the technology teams as
well as the digital channels, business intelligence and analytics teams. The Technology and Digital Group will also be
responsible for incubating innovative projects and developing partnerships in the digital space.
The Bank made significant strides in mobile banking during fiscal 2016. Some important mobility-based solutions
comprise the following:
1. Revamped iMobile: The Bank has migrated its mobile banking application iMobile to a robust framework. The
application has been revamped to make it the most comprehensive banking application in the country. iMobile
currently offers more than 150 functionalities and is available across all mobile platforms. The first-of-its-kind
offerings integrated in the app enable the customers to enjoy the option of logging in through either their mobile pin
(MPIN) or personalised username, initiate a transaction before reaching the branch through Insta Banking, purchase
mutual funds and avail forex services, connect with the Banks call centre, avail of cardless cash withdrawal services
from an ATM, tag frequent transactions as favourites and receive alerts from Google Now and Touch ID (from Apple)
as an alternate authentication method for secured login.
2. Touch & Pay: The Bank has launched a retail payment initiative called Touch & Pay, which is a contactless mobile
payment solution for in-store payments from mobile phones by leveraging Host Card Emulation (HCE) technology.
This innovative technology emulates a payment card on a mobile device. The details of the card, however, are
stored on the Banks secure cloud server and not on the customers phone. Using these virtual cards, an ICICI Bank
customer can initiate electronic payments from NFC enabled smartphones by just waving his/her phone near a
contactless merchant terminal.
3. Quick Checkout: Quick checkout is a unique feature in merchant payments through digital channels where the
user can make payments without entering the user id/password. The user has to register for this service through
merchant sites and once registered, the user will not be asked the credentials (User id & Password) when making
a payment at the pre-registered merchant site. The authentication of the user happens through the unique identity
validation between merchant and the Bank. The users can also enable or disable this facility through net banking.
4. Rail ticket booking: ICICI Bank is Indias first bank to offer railway ticket booking to customers of any bank on its
website, in association with Indian Railways Catering and Tourism Corporation Limited (IRCTC).
5. Bulk Immediate Payment Service (IMPS) payments for corporates: This facility enables corporates to transfer
funds 24x7 using the IMPS platform provided by the National Payments Corporation of India. This facility provides
additional bank payment options to meet the payment cycles of corporates.
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In addition, the Bank launched a range of technology-based products to offer more convenience to customers. Some of
these initiatives include Forex@click (a facility to purchase foreign exchange and travel card products 24x7), a dedicated
portal for the collection of central/state taxes, e-SOFTEX which enables software exporters to manage export reporting
to the authorities and doorstep banking for corporate customers which enables them to request collection and provide
disbursement instructions online.
To enhance fraud prevention measures, the Bank launched a real-time fraud monitoring tool for managing the fraud
on credit and debit cards. Big data and multi-channel campaign management have helped the Bank in campaigns,
management of real time offers, geospatial analytics and event-based marketing. The Bank continues to adopt state-ofthe-art technologies for infrastructure monitoring and data-centre optimisation to cater to evolving customer aspirations.
Additionally, the Bank has migrated its key systems (Core Banking System, Payment Gateway, Dealing Room Primary,
among others) to their latest versions enabling access to new features, enhanced security and better scalability.
KEY SUBSIDIARIES
ICICI Prudential Life Insurance Company (ICICI Life)
ICICI Life remains the market leader among private life insurers in terms of retail weighted received premium (RWRP) with
an overall market share of 11.3% and private market share of 21.9% for fiscal 2016. ICICI Lifes total premium in fiscal
2016 was ` 191.64 billion as compared to ` 153.07 billion during fiscal 2015 while the annualised premium equivalent
for fiscal 2016 was ` 51.70 billion as compared to ` 47.44 billion for fiscal 2015. The profit after tax was ` 16.50 billion as
compared to ` 16.34 billion in fiscal 2015. The total assets under management for ICICI Life stood at ` 1,039.39 billion
as on March 31, 2016. During fiscal 2016, ICICI Bank sold a 6.0% stake in ICICI Life to two investors, at a company
valuation of ` 325.00 billion. Post the transaction, our share ownership in ICICI Life came down from approximately 74%
to approximately 68%.
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Business Overview
ICICI Venture Funds Management Company (ICICI Venture)
ICICI Venture is a diversified specialist alternative asset manager with a presence across private equity, real estate,
infrastructure and special situations. During fiscal 2016, the fourth private equity fund concluded its first closing at ~USD
190 million (including co-investment capital). This comes after the final closing, during the last fiscal, of one of the largest
India focused alternative funds ever raised (AION), a USD 825 million special situations fund to which ICICI Venture is
an advisor under a strategic alliance with a leading global alternative asset manager (Apollo Global Management). ICICI
Ventures momentum of exits was sustained during fiscal 2016 as well. ICICI Venture has concluded 51 exits worth about
USD 1.3 billion since 2009 which is amongst the highest in the Indian market for this period. During fiscal 2016, the
company also concluded a diverse range of investments across its various funds into sectors such as consumer products
and services, retail and financial services. In fiscal 2016, ICICI Venture posted a loss of ` 0.21 billion for the year ended
March 31, 2016 compared to profit after tax of ` 0.01 billion for the year ended March 31, 2015.
ICICI Securities
During fiscal 2016, the Company introduced innovative products and services using effective technology to aid its 3.8
million retail customers. The Corporate Finance business continued to build a deal pipeline of diverse products whereas
the Institutional Broking segment enhanced corporate access through various conferences and events. The Company
achieved a consolidated profit after tax ` 2.39 billion in fiscal 2016 compared to ` 2.94 billion in fiscal 2015.
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CREDIT RATING
ICICI Banks credit ratings by various agencies at March 31, 2016 are given in the following table:
Rating Agency
Rating
ICRA Limited
Credit Analysis & Research Limited (CARE)
CRISIL Limited
Moody's Investors Service
Standard and Poor's (S&P)
Japan Credit Rating Agency (JCRA)
[ICRA] AAA
CARE AAA
CRISIL AAA
Baa31
BBB-1
BBB+1
1.
Vision
To be the leading provider of financial services in India and enhance our
positioning among global banks through sustainable value creation.
Mission
To create value for our stakeholders by:
being the financial services provider of first choice for our customers
by delivering high quality, world-class products and services
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during the year. Total deposits grew by 9.7% year-on-year at April 1, 2016 compared to a growth of 12.1% at April 3, 2015.
Demand deposits grew by 15.0% year-on-year at April 1, 2016 compared to a growth of 23.7% at April 3, 2015. Time
deposits grew by 9.1% year-on-year at April 1, 2016 compared to a growth of 10.9% at April 3, 2015.
The operating environment for the Indian corporate sector continued to remain challenging in view of the subdued global
scenario, gradual nature of the domestic economic recovery, continued weak corporate investment activity, delays and
shortfalls in cash flow generation from investments and high leverage. The decline in commodity prices had an impact
on borrowers in commodity-linked sectors, such as iron and steel. These conditions led to increasing levels of nonperforming loans for the Indian banking sector.
With regard to performance of the insurance sector, the first year retail premium underwritten in the life insurance sector
(on weighted received premium basis) grew by 8.1% to ` 440.76 billion during fiscal 2016 compared to ` 407.65 billion
in fiscal 2015. Gross premium of the non-life insurance sector (excluding specialised insurance institutions) grew by
13.6% to ` 915.72 billion during fiscal 2016 compared to ` 805.84 billion during fiscal 2015. The average assets under
management of mutual funds increased by 13.9% from ` 11,886.90 billion for the three months ended March 31, 2015 to
` 13,534.43 billion for the three months ended March 31, 2016.
Some important regulatory measures announced during fiscal 2016 were:
In April 2015, RBI issued revised guidelines on priority sector lending, based on the recommendations of the internal
working group set up to revisit the priority sector lending guidelines. These revised priority sector guidelines are
applicable from fiscal 2016. The overall target for priority sector lending would continue to be 40.0% of adjusted net
bank credit. Sub-targets for direct and indirect lending to agriculture were combined and sub-targets of 8.0% for
lending to small and marginal farmers and 7.5% lending target to micro-enterprises were introduced. These subtargets are to be achieved in a phased manner by March 2017. Sectors qualifying for priority sector lending have
been broadened to include medium-size enterprises, social infrastructure and renewable energy. Priority sector
lending achievements will be evaluated on a quarterly average basis from fiscal 2017. According to the guidelines,
foreign banks with less than 20 branches will also now be required to meet priority sector lending targets of 40.0%
of adjusted net bank credit, on par with domestic banks and foreign banks with 20 or more branches by fiscal 2020.
Further, in July 2015, RBI directed banks to maintain direct lending to non-corporate farmers at the banking systems
average level for the last three years, failing which banks will attract penalties for the shortfall. The banking systems
average level will be notified at the beginning of each year. The target for fiscal 2016 was set at 11.51%;
In April 2015, RBI allowed banks to introduce an early withdrawal facility in term deposits as a distinguishing feature
for offering differential rates of interest. All term deposits of individuals of ` 1.5 million and below will have a
premature withdrawal facility. For other term deposits, customers have the option to choose between term deposits
either with or without premature withdrawal facility;
In May 2015, RBI allowed banks to spread the shortfall from the sale of non-performing assets to asset reconstruction
companies over a period of two years, in the event the sale value is lower than the net book value. This dispensation
is available only for non-performing assets sold up to March 31, 2016;
In May 2015, RBI issued draft guidelines on net stable funding ratio. According to the draft guidelines, the net stable
funding ratio is defined as the amount of available stable funding required to cover the liquidity requirements and
asset maturities coming up over the next year. Banks will be required to maintain a ratio of at least 100.0% on an
ongoing basis. These guidelines are expected to be applicable from January 1, 2018;
In May 2015, RBI introduced a framework for dealing with loan frauds. The guidelines relate to detection, reporting
and monitoring of fraud accounts. They prescribe continuous monitoring and red flagging of accounts based on
early warning signals for accounts above ` 500.0 million. Frauds have to be reported on RBIs central repository of
information on large credits for dissemination to other banks and decision-making by the joint lenders forum in
case of consortium or multiple banking arrangements. Restructuring or grant of additional facilities would not be
permitted in case of fraud or red flagged accounts;
In June 2015, RBI issued guidelines on the compensation of non-executive directors of private sector banks. According
to the guidelines, the board of directors, in consultation with its remuneration committee, should formulate and
adopt a comprehensive compensation policy for the non-executive directors (other than the part-time non-executive
chairman). In the policy, the board may provide for the payment of compensation in the form of a profit related
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lending rate comprises marginal cost of funds, negative carry on account of cash reserve ratio, operating costs and
tenor premium. The guideline has specified categories of loans which can be priced without linkage to the marginal
cost of funds based lending rate. Banks have to review and publish their marginal cost of funds based lending rate
every month on a pre-announced date for different maturities ranging from overnight rate to up to one year. The
periodicity of reset shall be one year or lower. Loans linked to the base rate can continue till repayment or renewal
with existing borrowers having the option to move to the marginal cost of funds based lending rate linked loan at
mutually acceptable terms. Earlier, banks were not permitted to extend fixed rate loans at a rate of interest lower
than the base rate. This restriction no longer applies in the MCLR framework;
During the three months ended December 31, 2015, RBI articulated the objective of early and conservative
recognition of stress and provisioning, held discussions with and asked a number of Indian banks to review certain
loan accounts and their classification over the three months ended December 31, 2015 and the three months ended
March 31, 2016. As a result of the above factor, non-performing loans increased significantly in the banking system
during the second half of fiscal 2016. RBI also directed banks to make an additional provision of 10% during the year
ending March 31, 2017 in respect of restructured loan accounts highlighted by RBI;
In March 2016, RBI issued guidelines expanding the eligibility for common equity Tier 1 capital to include 45.0% of
revaluation reserves, which earlier qualified for inclusion in Tier 2 capital, and 75.0% of foreign currency translation
reserves. The guidelines further allowed recognition of deferred tax assets arising due to timing differences,
excluding accumulated losses, as Tier 1 capital up to 10.0% of a banks common equity Tier 1 capital, in line with
the guidelines of the Basel Committee on Banking Supervision (BCBS); and
In March 2016, the Ministry of Finance revised the methodology for determining interest rates on various small
savings schemes. As per the guidelines, interest rates of such savings schemes would be reset every quarter based
on G-sec yields of the previous three months.
95
96
Fiscal 2015
Fiscal 2016
% change
` 490.92
300.52
190.40
` 527.39
315.15
212.24
7.4%
4.9
11.5
82.87
16.93
15.59
6.37
312.16
114.96
88.20
40.60
15.35
9.07
365.46
126.83
6.4
(1.5)
42.4
17.1
10.3
Fiscal 2015
Fiscal 2016
% change
197.20
238.63
21.0
39.00
158.20
158.20
46.45
` 111.75
80.67
157.96
36.00
121.96
24.70
` 97.26
(0.2)
(22.9)
(46.8)
(13.0%)
Fiscal 2015
Fiscal 2016
14.32
1.86
19.32
138.74
26.55
36.83
11.32
1.49
16.75
154.32
24.13
34.70
Includes merchant foreign exchange income and margin on customer derivative transactions.
Includes exchange gains related to overseas operations.
All amounts have been rounded off to the nearest ` 10.0 million.
Prior period figures have been re-grouped/re-arranged, where necessary.
Key ratios
The following table sets forth, for the periods indicated, the key financial ratios.
Particulars
Return on average equity (%)1
Return on average assets (%)2
Earnings per share (`)
Book value per share (`)
Fee to income (%)
Cost to income (%)3
1.
2.
3.
Return on average equity is the ratio of the net profit after tax to the quarterly average equity share capital and reserves.
Return on average assets is the ratio of net profit after tax to average assets.
Cost represents operating expense. Income represents net interest income and non-interest income.
Interest income
Interest expense
Net interest income
Average interest-earning assets1
Average interest-bearing liabilities1
Net interest margin
Average yield on interest-earning assets
Average cost of funds
Interest spread
Fiscal 2015
Fiscal 2016
% change
` 490.92
300.52
190.40
` 527.39
315.15
212.24
7.4%
4.9
11.5
5,476.64
` 4,870.63
3.48%
8.96%
6.17%
2.79%
6,084.83
` 5,391.57
3.49%
8.67%
5.85%
2.82%
11.1
10.7
1. The average balances are the sum of the daily average balances outstanding except for the averages of overseas branches of ICICI
Bank which are calculated on a fortnightly basis up to September 2014. From October 2014, averages of foreign branches are
averages of daily balances.
2. All amounts have been rounded off to the nearest ` 10.0 million.
97
Fiscal 2016
- Cost of deposits
- Current and savings account (CASA) deposits
- Term deposits
- Cost of borrowings
8.96%
9.95
7.87
8.01
7.49
5.20
6.17
6.18
3.00
8.25
6.16
8.67%
9.47
7.61
7.84
6.83
5.49
5.85
5.88
3.00
7.86
5.77
Interest spread
Net interest margin
2.79
3.48%
2.82
3.49%
1. In accordance with the Reserve Bank of India circular dated July 16, 2015, investment in the Rural Infrastructure and Development
Fund and other related deposits has been re-grouped to line item Others under Schedule 11 - Other Assets and interest on the
Rural Infrastructure and Development Fund and other related deposits has been re-grouped from line item income on investments
to Others. Accordingly, figures of the previous periods have been re-grouped to conform to the current year presentation.
The yield on average interest-earning assets decreased primarily due to the following factors:
The yield on average interest-earning assets decreased by 29 basis points from 8.96% in fiscal 2015 to 8.67% in
fiscal 2016 primarily due to a decrease in yield on advances and yield on investments, offset, in part, by an increase
in proportion of average advances in total interest-earning assets. The yield on average advances decreased by 48
basis points from 9.95% in fiscal 2015 to 9.47% in fiscal 2016 and yield on average investments decreased by 26
basis points from 7.87% in fiscal 2015 to 7.61% in fiscal 2016.
The yield on advances was impacted by an increase in non-performing assets during fiscal 2016, as interest income
is not accrued on non-performing assets. The yield on domestic advances decreased by 78 basis points from 11.85%
in fiscal 2015 to 11.07% in fiscal 2016 primarily due to the above and a reduction in the base rate by 65 basis points
during fiscal 2016. The yield on overseas advances decreased by 10 basis points from 4.44% in fiscal 2015 to 4.34%
in fiscal 2016. However, the overall yield on average advances decreased by 48 basis points from 9.95% in fiscal
2015 to 9.47% in fiscal 2016 reflecting the positive impact of the increase in the proportion of domestic advances in
total advances.
98
The Reserve Bank of India reduced the repo rate by 125 basis points from 8.00% to 6.75% in four phases on January
15, 2015, March 4, 2015, June 2, 2015 and September 29, 2015. The Bank reduced its base rate by 65 basis points
from 10.00% to 9.35% in three phases - 25 basis points with effect from April 10, 2015, 5 basis points with effect from
June 26, 2015 and 35 basis points with effect from October 5, 2015.
The yield on average interest-earning investments decreased from 7.87% in fiscal 2015 to 7.61% in fiscal 2016 primarily
due to a decrease in the yield on Statutory Liquidity Ratio (SLR) investments. The yield on SLR investments decreased
by 17 basis points from 8.01% in fiscal 2015 to 7.84% in fiscal 2016 primarily due to softening of yield on Government
securities. The yield on non-SLR investments decreased by 66 basis points from 7.49% in fiscal 2015 to 6.83% in fiscal
2016 primarily due to a decrease in yield on bonds and debentures, certificate of deposits, pass through certificates
(PTCs) and commercial paper reflecting softening of interest rates. In accordance with RBI circular dated July 16, 2015,
deposits in the Rural Infrastructure Development Fund (RIDF) and other related deposits have been re-grouped from
investments to other assets. Figures for previous periods have also been re-grouped accordingly.
The above factors were offset, in part, by the following:
The yield on other interest-earning assets increased from 5.20% in fiscal 2015 to 5.49% in fiscal 2016 primarily due
to an increase in the yield on RIDF and other related deposits and a decrease in average term money lent from
overseas locations which is low yielding.
Interest on income tax refund was at ` 3.12 billion in fiscal 2016 (fiscal 2015: ` 2.71 billion). The receipt, amount
and timing of such income depend on the nature and timing of determinations by tax authorities and are neither
consistent nor predictable.
The cost of funds decreased by 32 basis points from 6.17% in fiscal 2015 to 5.85% in fiscal 2016 primarily due to the
following factors:
The cost of average deposits decreased from 6.18% in fiscal 2015 to 5.88% in fiscal 2016 primarily due to a decrease
in the cost of term deposits and an increase in proportion of CASA deposits. The cost of term deposits decreased
by 39 basis points from 8.25% in fiscal 2015 to 7.86% in fiscal 2016 primarily due to a decrease in cost of domestic
term deposits by 51 basis points from 8.61% in fiscal 2015 to 8.10% in fiscal 2016, offset, in part, by a decrease in
the proportion of overseas term deposits in total term deposits. The proportion of average CASA deposits in the
average deposits increased from 39.5% in fiscal 2015 to 40.7% in fiscal 2016.
The cost of borrowings decreased by 39 basis points from 6.16% in fiscal 2015 to 5.77% in fiscal 2016. The cost of
borrowings decreased primarily due to a decrease in the cost of call and term borrowings, cost of borrowing under
the Liquidity Adjustment Facility of RBI and an increase in foreign currency term borrowings which are lower cost.
While the net interest margin for fiscal 2016 was 3.49%, the net interest margin for the three months ended March 31,
2016 was 3.37%, reflecting primarily the impact of non-accrual of income on the higher level of non-performing assets.
Our interest income, yield on advances, net interest income and net interest margin are likely to continue to be impacted
going forward, due to the increase in non-performing assets, increased proportion of retail advances in total advances
and lending to higher rated corporates.
The following table sets forth, for the periods indicated, the trend in average interest-earning assets and average interestbearing liabilities:
` in billion, except percentages
Advances
Interest-earning investments1
Other interest-earning assets1
Total interest-earning assets
Deposits
Borrowings2
Total interest-bearing liabilities
Fiscal 2015
Fiscal 2016
% change
` 3,579.93
1,345.46
551.25
5,476.64
` 4,110.47
1,397.00
577.36
6,084.83
14.8%
3.8
4.7
11.1
3,285.52
1,585.11
` 4,870.63
3,665.55
1,726.02
` 5,391.57
11.6
8.9
10.7%
99
The average volume of interest-earning assets increased by 11.1% from ` 5,476.64 billion in fiscal 2015 to ` 6,084.83
billion in fiscal 2016. The increase in average interest-earning assets was primarily on account of an increase in average
advances by ` 530.54 billion and average interest-earning investments by ` 51.55 billion.
Average advances increased by 14.8% from ` 3,579.93 billion in fiscal 2015 to ` 4,110.47 billion in fiscal 2016 primarily
due to an increase in domestic advances.
Average interest-earning investments increased from ` 1,345.46 billion in fiscal 2015 to ` 1,397.00 billion in fiscal 2016,
primarily due to an increase in SLR investments by 8.5% from ` 992.42 billion in fiscal 2015 to ` 1,076.45 billion in
fiscal 2016, offset, in part, by a decrease in interest-earning non-SLR investments by 9.2% from ` 353.03 billion in fiscal
2015 to ` 320.55 billion in fiscal 2016. Average interest-earning non-SLR investments primarily include investments in
corporate bonds and debentures, PTCs, commercial papers, certificates of deposits and investments in liquid mutual
funds to deploy excess liquidity. Average interest-earning non-SLR investments decreased primarily due to a decrease
in investment in certificates of deposit, preference shares, bonds and debentures, mutual funds and PTCs, offset, in part,
by an increase in investment in commercial papers.
There was an increase in average other interest-earning assets by 4.7% from ` 551.25 billion in fiscal 2015 to ` 577.36
billion in fiscal 2016 primarily due to an increase in deposits with the RIDF and other related deposits and balances with
RBI, offset, in part, by a decrease in call and term money lent.
Average interest-bearing liabilities increased by 10.7% from ` 4,870.63 billion in fiscal 2015 to ` 5,391.57 billion in fiscal
2016 on account of an increase of ` 380.03 billion in average deposits and an increase of ` 140.91 billion in average
borrowings.
Average deposits increased due to an increase in average CASA deposits by ` 193.46 billion and an increase in average
term deposits by ` 186.57 billion.
Average borrowings increased by 8.9% from ` 1,585.11 billion in fiscal 2015 to ` 1,726.02 billion in fiscal 2016 primarily
due to an increase in term borrowings, bond borrowings and refinance borrowings, offset, in part, by a decrease in
borrowings under the Liquidity Adjustment Facility of RBI.
Non-interest income
The following table sets forth, for the periods indicated, the principal components of non-interest income.
` in billion, except percentages
Particulars
Fee income1
Income from treasury-related activities
Dividend from subsidiaries
Other income (including lease income)2
Total non-interest income
1.
2.
3.
Fiscal 2015
Fiscal 2016
% change
` 82.87
16.93
15.59
6.37
` 121.76
` 88.20
40.60
15.35
9.07
` 153.22
6.4%
(1.5)
42.4
25.8%
Includes merchant foreign exchange income and income on customer derivative transactions.
Includes exchange gains related to overseas operations.
All amounts have been rounded off to the nearest ` 10.0 million.
Non-interest income primarily includes fee and commission income, income from treasury-related activities, dividend
from subsidiaries and other income including lease income. The non-interest income increased by 25.8% from ` 121.76
100
billion in fiscal 2015 to ` 153.22 billion in fiscal 2016 primarily due to an increase in income from treasury-related activities,
fee and commission income and other income.
Fee income
Fee income primarily includes fees from corporate clients such as loan processing fees and transaction banking fees and
fees from retail customers such as loan processing fees, fees from credit cards business, account servicing charges and
third party referral/distribution fees.
Fee income increased by 6.4% from ` 82.87 billion in fiscal 2015 to ` 88.20 billion in fiscal 2016 primarily due to an increase
in income from transaction banking fees and third party referral fees, offset, in part, by a decrease in lending linked fees.
Profit/(loss) on treasury-related activities (net)
Income from treasury-related activities includes income from sale of investments and revaluation of investments on
account of changes in unrealised profit/(loss) in the fixed income, equity and preference share portfolio, units of venture
funds and security receipts issued by asset reconstruction companies.
Profit from treasury-related activities increased from ` 16.93 billion in fiscal 2015 to ` 40.60 billion in fiscal 2016 primarily
due to gains on sale of stake in ICICI Prudential Life Insurance Company Limited and ICICI Lombard General Insurance
Company Limited amounting to ` 33.74 billion, offset, in part, by lower gains on government securities and other fixed
income positions and provisioning on security receipts.
Dividend from subsidiaries
Dividend from subsidiaries decreased by 1.5% from ` 15.59 billion in fiscal 2015 to ` 15.35 billion in fiscal 2016. Dividend
from subsidiaries in fiscal 2016 primarily included dividend of ` 8.74 billion from ICICI Prudential Life Insurance Company
Limited, ` 1.61 billion from ICICI Securities Limited, ` 1.26 billion from ICICI Home Finance Company Limited and ` 1.22
billion from ICICI Securities Primary Dealership Limited. Dividend from subsidiaries in fiscal 2015 primarily included
dividend of ` 6.17 billion from ICICI Prudential Life Insurance Company Limited, ` 1.87 billion from ICICI Bank UK, ` 1.86
billion from ICICI Securities Limited and ` 1.61 billion from ICICI Home Finance Company Limited.
Other income (including lease income)
Other income increased from ` 6.37 billion in fiscal 2015 to ` 9.07 billion in fiscal 2016 primarily due to an increase in
exchange gains relating to overseas operations.
Non-interest expense
The following table sets forth, for the periods indicated, the principal components of non-interest expense.
` in billion, except percentages
Particulars
Payments to and provisions for employees
Depreciation on own property (including non-banking assets)
Other administrative expenses
Depreciation (net of lease equalisation) on leased assets
Total non-interest expense
1.
Fiscal 2015
Fiscal 2016
% change
` 47.50
6.24
60.87
0.35
` 114.96
` 50.02
6.79
69.83
0.19
` 126.83
5.3%
8.9
14.7
(45.1)
10.3%
All amounts have been rounded off to the nearest ` 10.0 million.
Non-interest expenses primarily include employee expenses, depreciation on assets and other administrative expenses.
Non-interest expenses increased by 10.3% from ` 114.96 billion in fiscal 2015 to ` 126.83 billion in fiscal 2016.
Payments to and provisions for employees
Employee expenses increased by 5.3% from ` 47.50 billion in fiscal 2015 to ` 50.02 billion in fiscal 2016 primarily on
account of higher salary due to annual increments and promotions and an increase in average staff strength, offset, in
part, by lower provision for retirement benefit obligations due to movement in the discount rate linked to the yield on
101
Fiscal 2015
Fiscal 2016
% change
` 31.41
2.98
3.85
0.76
` 72.16
1.71
2.97
3.84
(42.6)
(22.9)
39.00
` 39.00
80.67
36.00
` 116.67
Provisions are made by the Bank on standard, sub-standard and doubtful assets at rates prescribed by RBI. Loss assets
and the unsecured portion of doubtful assets are provided for/written off as required by RBI guidelines. For loans and
advances of overseas branches, provisions are made as per RBI regulations or host country regulations whichever is
higher. Provisions on retail non-performing loans are made at the borrower level in accordance with the retail assets
provisioning policy of the Bank, subject to the minimum provisioning levels prescribed by RBI. The specific provisions
on retail loans and advances held by the Bank are higher than the minimum regulatory requirement. Provision on loans
and advances restructured/rescheduled is made in accordance with the applicable RBI guidelines on restructuring of
loans and advances by banks. In addition to the specific provision on NPAs, the Bank maintains a general provision on
standard loans and advances at rates prescribed by RBI. For standard loans and advances in overseas branches, the
general provision is made at the higher of host country regulatory requirements and RBI requirements.
Provisions and contingencies (excluding collective contingency and related reserve and provisions for tax) increased from
` 39.00 billion in fiscal 2015 to ` 80.67 billion in fiscal 2016. This increase was primarily due to an increase in provisions
on non-performing assets. Provision for non-performing and other assets increased from ` 31.41 billion in fiscal 2015
to ` 72.16 billion in fiscal 2016 primarily due to an increase in additions to non-performing assets in the corporate and
small and medium enterprises loan portfolio, including downgrades from the restructured loan portfolio. The provision
coverage ratio at March 31, 2016 including cumulative technical/prudential write-offs was 61.0%. Excluding cumulative
technical/prudential write-offs, the provision coverage ratio was 50.6%.
102
Provision for investments decreased from ` 2.98 billion in fiscal 2015 to ` 1.71 billion in fiscal 2016. Provision on standard
assets decreased from ` 3.85 billion in fiscal 2015 to ` 2.97 billion in fiscal 2016.
The weak global economic environment, the sharp downturn in the commodity cycle and the gradual nature of the
domestic economic recovery has adversely impacted the borrowers in certain sectors such as iron and steel, mining,
power, rigs and cement. While the banksare working towards resolution of stress on certain borrowers in these sectors,
it may take some time for solutions to be worked out, given the weak operating and recovery environment.In view of the
above, the Bank, on a prudent basis, has created a collective contingency and related reserve of ` 36.00 billion towards
its exposures to these sectors.
Tax expense
The income tax expense (including wealth tax) decreased by 46.8% from ` 46.45 billion in fiscal 2015 to ` 24.70 billion
in fiscal 2016. The effective tax rate decreased from 29.4% in fiscal 2015 to 20.3% in fiscal 2016 primarily due to lower
applicable tax on sale of equity investments and set-off of carry forward capital losses pertaining to earlier periods.
Financial condition
Assets
The following table sets forth, at the dates indicated, the principal components of assets.
` in billion, except percentages
Assets
Cash and bank balances
Investments
- Government and other approved investments1
- Equity investment in subsidiaries
- Other investments
Advances
- Domestic
- Overseas branches
Fixed assets (including leased assets)
Other assets
- RIDF and other related deposits2
Total assets
% change
` 423.04
1,581.29
1,056.11
110.89
414.29
3,875.22
2,934.02
941.20
47.26
534.48
284.51
` 6,461.29
` 598.69
1,604.12
1,104.05
107.63
392.44
4,352.64
3,414.52
938.12
75.76
575.74
280.66
` 7,206.95
41.5%
1.4
4.5
(2.9)
(5.3)
12.3
16.4
(0.3)
60.3
7.7
(1.4)
11.5%
1. Banks in India are required to maintain a specified percentage, currently 21.5%, of their net demand and time liabilities by way of
liquid assets like cash, gold or approved unencumbered securities.
2. Deposits made in Rural Infrastructure Development Fund and other such entities pursuant to shortfall in the amount required to be
lent to certain specified sectors called priority sector as per RBI guidelines.
3. In accordance with the Reserve Bank of India circular dated July 16, 2015, investment in the Rural Infrastructure and Development
Fund and other related deposits of ` 280.66 billion at March 31, 2016 (March 31, 2015: ` 284.51 billion) has been re-grouped to line
item Others under Schedule 11 - Other Assets.
4. All amounts have been rounded off to the nearest ` 10.0 million.
Total assets of the Bank increased by 11.5% from ` 6,461.29 billion at March 31, 2015 to ` 7,206.95 billion at March 31,
2016, primarily due to 12.3% increase in advances, 41.5% increase in cash and cash equivalents, 7.7% increase in other
assets and 60.3% increase in fixed assets.
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 from ` 423.04 billion at March 31, 2015 to ` 598.69 billion at March 31, 2016
primarily due to an increase in money at call and short notice, balances with banks outside India and balances with RBI.
103
% change
` 11.60
792.69
3,615.63
1,148.60
495.20
1,971.83
1,315.29
456.29
859.00
405.39
384.16
21.23
3.50
317.19
` 6,461.29
` 11.70
885.66
4,214.26
1,342.30
588.70
2,283.26
1,363.66
426.39
937.27
380.92
358.40
22.52
3.50
347.25
` 7,206.95
0.9%
11.7
16.6
16.9
18.9
15.8
3.7
(6.6)
9.1
(6.0)
(6.7)
6.1
0.0
9.5
11.5%
Total liabilities (including capital and reserves) increased by 11.5% from ` 6,461.29 billion at March 31, 2015 to ` 7,206.95
billion at March 31, 2016 primarily due to 16.6% increase in deposits and 1.4% increase in borrowings.
104
Deposits
Deposits increased by 16.6% from ` 3,615.63 billion at March 31, 2015 to ` 4,214.26 billion at March 31, 2016. Term
deposits increased by 15.8% from ` 1,971.83 billion at March 31, 2015 to ` 2,283.26 billion at March 31, 2016, while
savings account deposits increased by 16.9% from ` 1,148.60 billion at March 31, 2015 to ` 1,342.30 billion at March
31, 2016 and current account deposits increased by 18.9% from ` 495.20 billion at March 31, 2015 to ` 588.70 billion
at March 31, 2016. The current and savings account deposits increased from ` 1,643.80 billion at March 31, 2015 to
` 1,931.00 billion at March 31, 2016. Total deposits at March 31, 2016 constituted 70.7% of the funding (i.e., deposits and
borrowings, other than preference share capital).
Borrowings
Borrowings increased by 1.4% from ` 1,724.18 billion at March 31, 2015 to ` 1,748.08 billion at March 31, 2016 primarily
due to an increase in foreign currency bond borrowings, refinance borrowings and foreign currency term money
borrowing, offset, in part, by a decrease in borrowings from RBI under Liquidity Adjustment Facility. Borrowings of
overseas branches, in US dollar terms, decreased from US$ 15.30 billion at March 31, 2015 to US$ 14.70 billion at March
31, 2016. However, due to rupee depreciation from ` 62.50 per US dollar at March 31, 2015 to ` 66.26 per US dollar at March
31, 2016, borrowings of overseas branches, in rupee terms, increased by 2.3% from ` 953.97 billion at March 31, 2015 to
` 976.35 billion at March 31, 2016.
Other liabilities
Other liabilities increased by 9.5% from ` 317.19 billion at March 31, 2015 to ` 347.25 billion at March 31, 2016 primarily
due to an increase in the collective contingencies and related reserve, offset, in part, by a decrease in mark-to-market
amount and payables on foreign exchange and derivatives transactions.
Equity share capital and reserves
Equity share capital and reserves increased from ` 804.29 billion at March 31, 2015 to ` 897.36 billion at March 31, 2016
primarily due to accretion to reserves from profit for the year and creation of revaluation reserve of ` 28.17 billion on fixed
assets, offset, in part, by proposed dividend.
` 39.77
0.07
2,898.72
993.27
496.59
514.31
3,538.30
38.75
` 8,519.78
` 35.36
0.01
3,567.73
1,004.95
472.78
460.01
3,414.40
52.75
` 9,007.99
All amounts have been rounded off to the nearest ` 10.0 million.
Contingent liabilities increased from ` 8,519.78 billion at March 31, 2015 to ` 9,007.99 billion at March 31, 2016 primarily
due to an increase in notional principal amount of outstanding forward exchange contracts, offset, in part, by a decrease
in notional amount of interest rate swaps and currency options. The notional principal amount of outstanding forward
exchange contracts increased from ` 2,898.72 billion at March 31, 2015 to ` 3,567.73 billion at March 31, 2016.
Claims against the Bank, not acknowledged as debts, represent 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 Banks
accounting policy and Accounting Standard 29, the Bank has reviewed and classified these items as possible obligations
based on legal opinion/judicial precedents/assessment by the Bank. No provision in excess of provisions already made
in the financial statements is considered necessary.
105
Capital resources
The Bank actively manages its capital to meet regulatory norms, current and future business needs and the risks in
its businesses. The capital management framework of the Bank is administered by the Finance Group and the Risk
Management Group under the supervision of the Board and the Risk Committee. The capital adequacy position and
assessment is reported to the Board and the Risk Committee periodically.
Regulatory capital
The Bank is subject to the Basel III guidelines issued by RBI, effective from April 1, 2013, which are being implemented
in a phased manner by March 31, 2019 as per the transitional arrangement provided by RBI for Basel III implementation.
The Basel III rules on capital consist of measures for improving the quality, consistency and transparency of capital,
enhancing risk coverage, introducing a supplementary leverage ratio, reducing pro-cyclicality and promoting countercyclical buffers and addressing systemic risk and inter-connectedness.
At March 31, 2016, the Bank was required to maintain a minimum Common Equity Tier-1 (CET1) capital ratio of 6.13%,
minimum Tier-1 capital ratio of 7.63% and minimum total capital ratio of 9.63%. The minimum total capital requirement
includes a capital conservation buffer of 0.63%. Under Pillar 1 of RBI guidelines on Basel III, the Bank follows the
standardised approach for measurement of credit risk, standardised duration method for measurement of market risk
and basic indicator approach for measurement of operational risk.
On March 1, 2016, RBI made certain amendments to the treatment of certain balance sheet items for the purposes of
determining banks regulatory capital. As per the revised guidelines, Foreign Currency Translation Reserve (FCTR) and
revaluation reserve are allowed to be considered under CET1 capital at a discount of 25% and 55% respectively. Further,
aligning RBI guidelines with the Basel III guidelines, deferred tax assets arising due to timing differences are allowed to
be recognised as CET1 capital up to 10% of a banks CET1 capital and risk weighted at 250%, as compared to the earlier
requirement of deduction of the entire deferred tax assets from CET1 capital.
Further, as per the framework issued for Domestic Systemically Important Banks (D-SIBs) in July 2014, RBI, on August 31,
2015, categorised ICICI Bank as a D-SIB in bucket 1 (lowest bucket) with an additional CET1 requirement as a percentage
of Risk Weighted Assets (RWA) of 0.2%. This additional requirement is applicable from April 1, 2016 in a phased manner
and would become fully effective from April 1, 2019. The additional CET1 requirement will be in addition to the capital
conservation buffer. The additional CET1 requirement for fiscal 2017 will be 0.05% of RWA.
The following table sets forth the capital adequacy ratios computed in accordance with Basel III guidelines of RBI at March
31, 2015 and March 31, 2016.
106
At
March 31, 2015
At
March 31, 2016
696.61
696.61
230.83
927.44
789.59
794.82
215.13
1,009.95
4,741.56
3,678.25
1,063.31
334.23
373.17
5,448.96
5,263.19
4,213.23
1,049.96
310.41
497.53
6,071.13
17.02%
12.78%
12.78%
4.24%
16.64%
13.00%
13.09%
3.55%
All amounts have been rounded off to the nearest ` 10.0 million.
At March 31, 2016, the Banks Tier-1 capital adequacy ratio was 13.09% as against the requirement of 7.63% and total
capital adequacy ratio was 16.64% as against the requirement of 9.63%.
Movement in the capital funds and risk weighted assets from March 31, 2015 to March 31, 2016 as per Basel III norms
Capital funds (net of deductions) increased by ` 82.51 billion from ` 927.44 billion at March 31, 2015 to ` 1,009.95 billion at
March 31, 2016 primarily due to inclusion of retained earnings for fiscal 2016, amendments in guidelines for recognition of
FCTR at a discount of 25% and revaluation reserve at a discount of 55% in CET1 capital, risk weighting of deferred tax assets
at 250% instead of full deduction from Tier-1 capital and lower deduction for investment in subsidiaries due to repatriation
of capital from an overseas banking subsidiary and sale of shareholding in insurance subsidiaries, offset, in part, by a
decrease in the eligible amount of non-common equity capital due to application of Basel III grandfathering rules.
Credit risk RWA increased by ` 521.63 billion from ` 4,741.56 billion at March 31, 2015 to ` 5,263.19 billion at March 31,
2016 primarily due to an increase of ` 534.98 billion in RWA for on-balance sheet assets, offset, in part, by a decrease of
` 13.35 billion in RWA for off-balance sheet assets.
Market risk RWA decreased by ` 23.82 billion from ` 334.23 billion at March 31, 2015 to ` 310.41 billion at March 31, 2016
primarily due to a decrease in interest rate related positions.
Operational risk RWA increased by ` 124.36 billion from ` 373.17 billion at March 31, 2015 to ` 497.53 billion at March 31,
2016. The operational risk capital charge is computed based on 15% of the average of the previous three financial years
gross income and is revised on an annual basis at June 30. RWA is arrived at by multiplying the capital charge by 12.5.
Internal assessment of capital
The capital management framework of the Bank includes a comprehensive internal capital adequacy assessment process
conducted annually, which determines the adequate level of capitalisation necessary to meet regulatory norms and
current and future business needs, including under stress scenarios. The internal capital adequacy assessment process is
undertaken at both the standalone bank level and the consolidated group level. The internal capital adequacy assessment
process encompasses capital planning for a four-year time horizon, identification and measurement of material risks and
the relationship between risk and capital.
The capital management framework is complemented by the risk management framework, which covers the policies,
processes, methodologies and frameworks established for the management ofmaterial risks. Stress testing, which is a
key aspect of the internal capital adequacy assessment process and the risk management framework, provides an insight
into the impact of extreme but plausible scenarios on the Banks risk profile and capital position. Based on the stress
testing framework approved by the Board, the Bank conducts stress tests on various portfolios and assesses the impact
107
evaluation of options to raise capital from domestic and overseas markets, as permitted by RBI from time to time.
The Bank continues to monitor relevant developments and believes that its current robust capital adequacy position and
demonstrated track record of access to domestic and overseas markets for capital raising will enable it to maintain the
necessary levels of capital as required by regulations while continuing to grow its business.
Retail finance1, 2
Power
Road, ports, telecom, urban development and other
infrastructure
Iron/steel and products
Services non-finance
Services finance
Wholesale/retail trade
Construction
Metal & products (excluding iron & steel)
Cement
Crude petroleum/refining and petrochemicals
Mining
Food and beverages
Electronics and engineering
Shipping
Manufacturing products (excluding metal)
Other industries3
Total
108
% of total
advances
43.5%
6.2
` 2,130.70
273.32
47.3%
6.1
6.1
5.6
5.8
3.2
2.9
2.5
2.3
2.3
2.9
1.8
1.6
1.7
1.7
0.9
9.0
100.0%
268.49
256.54
229.64
143.30
126.86
104.97
99.71
85.66
77.41
73.79
67.42
67.02
59.07
41.88
396.05
` 4,501.83
6.0
5.7
5.1
3.2
2.8
2.3
2.2
1.9
1.7
1.7
1.5
1.5
1.3
0.9
8.8
100.0%
1. Includes home loans, automobile loans, commercial business loans, dealer financing and small ticket loans to small businesses,
personal loans, credit cards, rural loans and loans against securities.
2. Includes loans against FCNR deposits of ` 72.65 billion at March 31, 2016 (March 31, 2015: ` 67.84 billion).
3. Other industries primarily include developer financing portfolio, gems and jewellery, chemical and fertilizers, textile, automobiles,
drugs and pharmaceuticals and FMCG.
4. All amounts have been rounded off to the nearest ` 10.0 million.
The Banks capital allocation framework is focused on higher growth in retail finance segment and lower growth in
corporate lending with an increase in the proportion of higher rated exposures. Given the focus on the above priorities,
gross retail finance advances increased by 22.7% in fiscal 2016 compared to an increase of 12.8% in total gross advances.
As a result, the share of gross retail finance advances increased from 43.5% of gross advances at March 31, 2015 to
47.3% of gross advances at March 31, 2016. Further, the aggregate net increase in advances to power, roads, ports,
telecom, urban development & other infrastructure, iron/steel & products, metal & products (excluding iron & steel) and
mining sectors was primarily in the A- and above category based on the Banks internal ratings. The increase in advances
to these sectors also included the impact of currency depreciation between March 31, 2015 and March 31, 2016, on the
rupee equivalent of foreign currency denominated advances made by overseas branches of the Bank.
The following table sets forth, at the dates indicated, the composition of the Banks gross (net of write-offs) outstanding
retail finance portfolio.
` in billion, except percentages
Home loans
Automobile loans
Commercial business
Business banking1
Personal loans
Credit cards
Others2, 3
Total retail finance portfolio3
1.
2.
3.
4.
51.6%
10.5
6.1
5.3
4.8
2.6
19.1
100.0%
The net retail loan portfolio of the Bank grew by 23.3% during fiscal 2016.
Directed Lending
RBI requires banks to lend to certain sectors of the economy. Such directed lending comprises priority sector lending
and export credit.
Priority Sector Lending and Investment
RBI guidelines on priority sector lending require banks to lend 40.0% of their Adjusted Net Bank Credit (ANBC), to fund
certain types of activities carried out by specified borrowers. The definition of ANBC includes bank credit in India adjusted
by bills rediscounted with RBI and other approved financial institutions and certain investments and is computed with
reference to the outstanding amount at March 31 of the previous year as prescribed by RBI guidelines Master Circular
- Priority Sector Lending - Targets and Classification. Further, RBI allowed loans extended in India against incremental
foreign currency non-resident (bank)/non-resident external deposits from July 26, 2013 and outstanding at March 7, 2014
to be excluded from ANBC. In May 2014, RBI issued guidelines allowing banks to include the outstanding investments
in Rural Infrastructure Development Fund and other specified funds at March 31 of the fiscal year to be classified as
indirect agriculture and count towards the overall priority sector target achievement. Such investments at March 31
of the preceding year are included in the ANBC which forms the base for computation of the priority sector and subsegment lending requirements. In fiscal 2015, RBI allowed banks to issue long-term bonds for financing infrastructure and
109
Classification of loans
The Bank classifies its assets as performing and non-performing in accordance with RBI guidelines. Under RBI guidelines,
an asset is classified as non-performing if any amount of interest or principal remains overdue for more than 90 days,
in respect of term loans. In respect of overdraft or cash credit, an asset is classified as non-performing if the account
remains out of order for a period of 90 days and in respect of bills, if the account remains overdue for more than 90 days.
In respect of borrowers where loans and advances made by overseas branches are identified as impaired as per host
country regulations for reasons other than record of recovery, but which are standard as per RBI guidelines, the amount
outstanding in the host country is classified as non-performing.
RBI has separate guidelines for classification of loans for projects under implementation which are based on the date of
commencement of commercial production and date of completion of the project as originally envisaged at the time of
financial closure. For infrastructure projects, a loan is classified as non-performing if it fails to commence commercial
operations within two years from the documented date of commencement and for non-infrastructure projects, the loan
is classified as non-performing if it fails to commence operations within 12 months from the documented date of such
commencement.
110
RBI also has separate guidelines for restructured loans. Upto March 31, 2015, a fully secured standard asset could be
restructured by re-schedulement of principal repayments and/or the interest element, but had to be separately disclosed
as a restructured asset. The diminution in the fair value of the restructured loan, if any, measured in present value terms,
was either written off or a provision was made to the extent of the diminution involved. Similar guidelines applied for
restructuring of non-performing loans. Loans restructured after April 1, 2015 (excluding loans given for implementation
of projects in the infrastructure sector and non-infrastructure sector and which are delayed up to a specified period) by
re-schedulement of principal repayments and/or the interest element are classified as non-performing. For such loans,
the diminution in the fair value of the loan, if any, measured in present value terms, has to be provided for in addition to
the provisions applicable to non-performing loans.
The following table sets forth, at the dates indicated, information regarding the Banks gross non-performing assets (net
of write-offs, interest suspense and derivative income reversals).
` in billion
March 31, 2015
` 26.27
100.63
25.52
` 152.42
` 40.91
195.94
30.36
` 267.21
Non-performing assets
Sub-standard assets
Doubtful assets
Loss assets
Total non-performing assets1
1.
2.
Include advances, lease receivables and credit substitutes like debentures and bonds. Excludes preference shares.
All amounts have been rounded off to the nearest ` 10.0 million.
The following table sets forth, at the dates indicated, information regarding the Banks non-performing assets (NPAs).
` in billion, except percentages
Year ended
March 31, 2013
March 31, 2014
March 31, 2015
March 31, 2016
1.
2.
3.
Gross
NPA1
Net
NPA
Net customer
assets2
` 96.47
` 105.54
` 152.42
` 267.21
` 22.34
` 33.01
` 63.25
` 132.97
` 3,517.62
` 4,037.08
` 4,516.34
` 4,972.29
0.64%
0.82%
1.40%
2.67%
From fiscal 2012, the Indian economy experienced a slowdown in growth, particularly in capital investments; high interest
rates due to high inflation; and significant currency depreciation. Indian companies experienced a decline in sales and
profit growth and also an elongation of working capital cycles and a high level of receivables. Given the concerns over
growth, companies found it difficult to access other sources of funding, resulting in high leverage. As a result, the Indian
banking sector, including the Bank, experienced a rise in non-performing assets and restructured loans. Over the past two
years, the domestic economic recovery has been gradual and the global economic environment has become challenging.
Fiscal 2016 witnessed a slowdown in global economic growth mainly on account of lower growth in China and emerging
market economies, divergence in global monetary policy and significant decline in commodity prices including crude
oil and metals. Due to the increased level of risks in the business environment, the Indian banking system in general has
experienced an increase in the level of additions to non-performing loans including slippages from restructured loans
into non-performing status. During three months ended December 31, 2015, RBI articulated the objective of early and
conservative recognition of stress and provisioning, held discussions with and asked a number of Indian banks to review
certain loan accounts and their classification over the three months ended December 31, 2015 and three months ended
March 31, 2016, through its Asset Quality Review. As a result of the above factors, non-performing loans of the Bank
increased significantly in the second half of fiscal 2016.
111
Retail finance1
Iron/steel and products
Services non-finance
Road, ports, telecom, urban development and other
infrastructure
Construction
Shipping
Power
Wholesale/retail trade
Food and beverages
Manufacturing products (excluding metal)
Electronics and engineering
Metal & products (excluding iron & steel)
Services finance
Crude petroleum/refining and petrochemicals
Mining
Cement
Other industries2
Total
4.53
3.94
4.78
8.06
1.72
0.56
0.02
0.93
0.30
19.90
` 152.42
%
22.2%
6.4
15.4
12.0
4.8
9.8
3.0
2.6
3.1
5.3
1.1
0.4
0.0
0.6
0.2
13.1
100.0%
` 38.25
65.04
29.30
14.3%
24.3
11.0
26.01
22.22
19.60
17.51
5.90
4.55
3.58
3.01
1.10
0.52
0.02
30.60
` 267.21
9.7
8.3
7.3
6.6
2.2
1.7
1.3
1.1
0.4
0.2
0.0
11.6
100.0%
1. Includes home loans, automobile loans, commercial business loans, dealer financing and small ticket loans to small businesses,
personal loans, credit cards, rural loans and loans against securities.
2.
Other industries primarily include textile, chemical and fertilizers, gems and jewellery, drugs and pharmaceuticals, FMCG,
automobiles and developer financing.
3. All amounts have been rounded off to the nearest ` 10.0 million.
The gross non-performing assets increased from ` 152.42 billion at March 31, 2015 to ` 267.21 billion at March 31, 2016
primarily due to additions in non-performing assets in iron/steel and products, construction and power sectors.
At March 31, 2016, net non-performing loans in the retail portfolio were 0.61% of net retail loans compared to 0.60% at
March 31, 2015.
The gross outstanding loans to borrowers whose facilities have been restructured decreased from ` 119.46 billion at
March 31, 2015 to ` 93.13 billion at March 31, 2016. During fiscal 2016, the Bank restructured loans of borrowers classified
as standard, as well as made additional disbursements to borrowers whose loans had been restructured in prior years,
aggregating ` 29.47 billion, as compared to ` 53.69 billion in fiscal 2015. Further, during fiscal 2016, restructured standard
112
loans amounting to ` 53.00 billion slipped into the non-performing category as compared to slippages of ` 45.29 billion
during fiscal 2015. The net outstanding loans to borrowers whose facilities have been restructured decreased from
` 110.17 billion at March 31, 2015 to ` 85.73 billion at March 31, 2016.
In fiscal 2016, RBI issued guidelines on Strategic Debt Restructuring (SDR) under which conversion of debt into equity
and acquisition of majority ownership of the borrower by banks is allowed. At March 31, 2016 the Bank had outstanding
SDR loans of ` 29.33 billion comprising primarily loans already classified as non-performing loans or restructured loans.
Further, in fiscal 2015, RBI had issued guidelines permitting banks to refinance long-term project loans to infrastructure
and other core industries at periodic intervals without such refinancing being considered as restructuring. Accordingly,
the outstanding portfolio of such loans for which refinancing under the 5/25 scheme has been implemented was ` 42.39
billion at March 31, 2016.
The Banks aggregate net investments in security receipts including application money issued by asset reconstruction
companies were ` 7.91 billion at March 31, 2016 as compared to ` 8.41 billion at March 31, 2015.
At March 31, 2016, the total general provision held against standard assets including general provision on restructured
assets was ` 26.58 billion.
There are uncertainties in respect of certain sectors due to the weak global economic environment, sharp downturn in the
commodity cycle, gradual nature of the domestic economic recovery and high leverage. The key sectors that have been
impacted include power, mining, iron and steel, cement and rigs. At March 31, 2016, the Banks exposure (comprising
fund-based limits and non-fund based outstanding) to companies internally rated below investment grade (excluding
borrowers classified as non-performing or restructured) was ` 119.60 billion (1.3% of the Banks total exposure) in power
sector, ` 90.11 billion (1.0%) in mining sector, ` 77.76 billion (0.8%) in iron & steel sector, ` 66.43 billion (0.7%) in cement
sector and ` 25.13 billion (0.3%) in rigs sector. Further, the Banks exposure (comprising fund-based limits and non-fund
based outstanding) to promoter entities internally rated below investment grade where the underlying is partly linked to
these sectors was ` 61.62 billion (0.7%). In view of the uncertainties relating to these sectors and the time that it may take
to resolve exposures to these sectors, the Bank on a prudent basis made a collective contingency and related reserve
of ` 36.00 billion towards its exposures to these sectors. This reserve is over and above the provisions required for nonperforming and restructured loans as per RBI guidelines. There can be no assurance that this reserve would be adequate
to cover any future provisioning requirements in respect of these exposures or that non-performing loans will not arise
from other sectors.
Segment information
RBI in its guidelines on segmental reporting has stipulated specified business segments and their definitions, for the
purposes of public disclosures on business information for banks in India.
The standalone segmental report for fiscal 2016, based on the segments identified and defined by RBI, has been presented
as follows:
Retail Banking includes exposures of the Bank, which satisfy the four qualifying criteria of regulatory retail portfolio
as stipulated by RBI guidelines on the Basel III framework.
Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, by the Bank
which are not included in the Retail Banking segment, as per RBI guidelines for the Bank.
Treasury includes the entire investment portfolio of the Bank.
Other Banking includes leasing operations and other items not attributable to any particular business segment of the
Bank.
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.
113
114
The profit before tax of ICICI Lombard General Insurance Company Limited increased from ` 6.91 billion in fiscal 2015
to ` 7.08 billion in fiscal 2016 primarily due to an increase in net earned premium and investment income, offset, in part,
by an increase in claims and benefits paid and operating expenses. However, the profit after tax decreased from ` 5.36
billion in fiscal 2015 to ` 5.07 billion in fiscal 2016 due to a higher effective tax rate.
The profit after tax of ICICI Prudential Asset Management Company Limited increased from ` 2.47 billion in fiscal 2015 to
` 3.26 billion in fiscal 2016 primarily due to an increase in fee income, offset, in part, by an increase in other administrative
expenses and staff cost.
The consolidated profit after tax of ICICI Securities Limited and its subsidiaries decreased from ` 2.94 billion in fiscal 2015
to ` 2.39 billion in fiscal 2016 primarily due to a decrease in brokerage and fee income, reflecting lower trading volumes
in the capital markets.
The profit after tax of ICICI Securities Primary Dealership Limited decreased from ` 2.17 billion in fiscal 2015 to ` 1.95
billion in fiscal 2016 primarily due to a decrease in trading gains, offset, in part, by an increase in net interest income.
The profit after tax of ICICI Home Finance Company Limited decreased from ` 1.98 billion in fiscal 2015 to ` 1.80 billion in
fiscal 2016 primarily due to an increase in provisions and a decrease in non-interest income.
The profit after tax of ICICI Bank Canada decreased from ` 1.82 billion (CAD 33.7 million) in fiscal 2015 to ` 1.12 billion
(CAD 22.4 million) in fiscal 2016 primarily due to an increase in provisions and a decrease in other income, offset, in part,
by an increase in net interest income.
The profit after tax of ICICI Bank UK PLC decreased from ` 1.12 billion (US$ 18.3 million) in fiscal 2015 to ` 0.04 billion
(US$ 0.5 million) in fiscal 2016 primarily due to an increase in provisions and a decrease in non-interest income, offset, in
part, by an increase in net interest income.
The profit after tax of ICICI Venture Fund Management Company Limited decreased from ` 0.01 billion in fiscal 2015 to
a loss after tax of ` 0.21 billion in fiscal 2016 primarily due to a decrease in income from operations and other income,
offset, in part, by a decrease in staff costs and other administrative expenses.
The consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from ` 8,260.79 billion
at March 31, 2015 to ` 9,187.56 billion at March 31, 2016 primarily due to an increase in the assets of ICICI Bank, ICICI
Prudential Life Insurance Company Limited, ICICI Bank Canada and ICICI Bank UK. Consolidated advances increased from
` 4,384.90 billion at March 31, 2015 to ` 4,937.29 billion at March 31, 2016.
The following table sets forth, for the periods indicated, the profit/(loss) and total assets of our principal subsidiaries.
` in billion
Profit after tax
Total assets
Fiscal 2015
Fiscal 2016
` 16.34
` 16.50
` 1,012.16
` 1,047.66
5.36
5.07
136.56
156.76
1.82
1.12
291.19
333.45
1.12
0.04
258.11
304.99
2.17
1.95
146.88
161.73
2.94
2.39
13.63
13.97
1.98
1.80
82.99
93.88
2.47
3.26
7.28
8.18
` 0.01
` (0.21)
` 5.14
` 4.21
See also Financials- Statement pursuant to Section 129 of the Companies Act, 2013.
All amounts have been rounded off to the nearest ` 10.0 million.
115
116
2011
2012
2013
2014
2015
2016
495.33
516.18
2.00
2.20
11.1%
7.83
7.88
41.58
2.22%
73.04
14.0%1
2.20
7.7%
6.74
6.75
37.58
2.43%
83.67
15.5%1
2.40
7.9%
7.20
7.23
40.25
2.49%
81.14
19.4%1
550.91
604.05
667.06
732.13
804.29
897.36
2.80
9.6%
9.01
9.05
51.51
2.64%
90.17
19.5%1
3.30
11.1%
11.19
11.22
64.65
2.73%
107.34
18.5%1
4.00
12.9%
14.39
14.44
83.25
3.11%
138.66
18.7%1
4.60
13.7%
16.93
17.00
98.10
3.33%
164.75
17.7%2
5.00
14.3%
19.13
19.32
111.75
3.48%
190.40
17.0%2
5.00
11.3%
16.65
16.75
97.26
3.49%
212.24
16.6%2
3. During the year ended March 31, 2015, the shareholders of the Bank approved the sub-division of each equity share having a face value of
` 10 into five equity shares having a face value of ` 2 each through postal ballot on November 20, 2014. Per share information reflect the effect of
sub-division for each of the periods presented.
2. Total capital adequacy ratio has been calculated as per Basel III framework.
1. Total capital adequacy ratio has been calculated as per Basel II framework.
13.4%
6.93
31.10
2.19%
6.97
56.37
11.7%
464.71
3,446.58 3,997.95 3,793.01 3,634.00 4,062.34 4,890.69 5,367.95 5,946.42 6,461.29 7,206.95
243.13
Total assets
1,958.66 2,256.16 2,183.11 1,812.06 2,163.66 2,537.28 2,902.49 3,387.03 3,875.22 4,352.64
2010
Total advances
2009
2,305.10 2,444.31 2,183.48 2,020.17 2,256.02 2,555.00 2,926.14 3,319.14 3,615.63 4,214.26
2008
Total deposits
2007
AUDITORS RESPONSIBILITY
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. W
e have taken into account the provisions of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
5. W
e conducted our audit of the Bank including its branches in accordance with Standards on Auditing (the Standards)
specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatements.
6. A
n audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the Bank's preparation of the financial statements that give a true
and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates
made by Banks Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of
their report referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our
audit opinion on the standalone financial statements.
OPINION
8. 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
relevant requirements of the Companies Act, 2013, in the manner so required for banking companies and give a true
and fair view in conformity with accounting principles generally accepted in India of the state of affairs of the Bank as
at 31 March 2016, and its profit and its cash flows for the year then ended.
117
OTHER MATTERS
10. We did not audit the financial statements of the Singapore, Bahrain, Hong Kong, Dubai, Qatar, China, South Africa,
New York and Sri Lanka branches of the Bank, whose financial statements reflect total assets of ` 1,669,359 million
as at 31 March 2016, total revenues of ` 74,005 million for the year ended 31 March 2016 and net cash inflows
amounting to ` 12,184 million for the year ended 31 March 2016. These financial statements have been audited by
other auditors, duly qualified to act as auditors in the country of incorporation of the said branches, whose reports
have been furnished to us by Management of the Bank and our opinion, in so far as it relates to such branches is
based solely on the reports of the other auditors. Our opinion is not modified in respect of this matter.
(a) w
e 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; and
(c) s ince the key operations of the Bank are automated with the key applications integrated to the core banking
systems, the audit is carried out centrally as all the necessary records and data required for the purposes of
our audit are available therein. However, during the course of our audit we have visited 122 branches. As stated
above, returns from nine foreign branches were received duly audited by other auditors and were found adequate
for the purposes of our audit.
13. Further, as required by section 143(3) of the Companies Act, 2013, we further report that:
(i) w
e have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit;
(ii) in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from
our examination of those books and proper returns adequate for the purposes of our audit have been received
from the foreign branches not visited by us;
(iii) the reports on the accounts of the foreign branch offices audited by the respective branch auditors of the Bank
under section 143(8) of the Companies Act 2013 have been sent to us and have been properly dealt with by us
in preparing this report;
(iv) 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 and with the returns received from the foreign branches not visited by us;
(v) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, to the extent they are
not inconsistent with the accounting policies prescribed by the RBI and to the extent of the direction given by the
RBI in respect to the matter dealt with in the Emphasis of Matter paragraph above;
118
(vi) on the basis of written representations received from the directors as on 31 March 2016 taken on record by the
Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director
in terms of Section 164 (2) of the Act;
(vii) with respect to the adequacy of the internal financial controls over financial reporting of the Bank and the
operating effectiveness of such controls, refer our separate Report in Annexure A;
(viii) with respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to
the explanations given to us:
a) t he Bank has disclosed the impact of pending litigations on its financial position in its financial statements Refer Note 39 to the standalone financial statements;
b) t he 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 Note 39 to the
standalone financial statements; and
c) t here has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Bank.
For B S R & Co. LLP
Chartered Accountants
Firms Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Mumbai
29 April 2016
Partner
Membership No: 113156
119
Annexure A
to the Independent Auditors Report of even date on the Standalone Financial Statements of ICICI Bank Limited
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
143 OF THE COMPANIES ACT, 2013
1. W
e have audited the internal financial controls over financial reporting of ICICI Bank Limited (the Bank) as at 31
March 2016 in conjunction with our audit of the standalone financial statements of the Bank for the year ended on
that date.
AUDITORS RESPONSIBILITY
3. O
ur responsibility is to express an opinion on the Banks internal financial controls over financial reporting based
on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing (the
Standards), issued by the ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable
to an audit of internal financial controls, both issued by the ICAI. 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 over financial reporting was established and maintained and if such controls
operated effectively in all material respects.
4. O
ur audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls
over financial reporting included obtaining an understanding of internal financial controls over financial reporting,
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 auditors judgement, including
the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. W
e 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 Banks internal financial controls system over financial reporting.
120
Annexure A
to the Independent Auditors Report of even date on the Standalone Financial Statements of ICICI Bank Limited
OPINION
8. In our opinion, the Bank has, in all material respects, an adequate internal financial controls system over financial
reporting and such internal financial controls over financial reporting were operating effectively as at 31 March
2016, based on the internal control over financial reporting 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 ICAI.
OTHER MATTERS
9. O
ur aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal
financial controls over financial reporting insofar as it relates to oversseas branches, is based on the corresponding
reports of the branch auditors. Our opinion is not modified in respect of this matter.
For B S R & Co. LLP
Chartered Accountants
Firms Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Mumbai
29 April 2016
Partner
Membership No: 113156
121
Balance Sheet
at March 31, 2016
` in 000s
Schedule
1
2
3
4
5
At
31.03.2016
At
31.03.2015
11,631,656
67,019
885,657,157
4,214,257,086
1,748,073,779
347,264,350
7,206,951,047
11,596,608
74,388
792,622,557
3,615,627,301
1,724,173,498
317,198,572
6,461,292,924
ASSETS
Cash and balances with Reserve Bank of India
Balances with banks and money at call and short notice
Investments
Advances
Fixed assets
Other assets
TOTAL ASSETS
6
7
8
9
10
11
271,060,888
327,626,531
1,604,117,966
4,352,639,419
75,769,200
575,737,043
7,206,951,047
256,529,069
166,517,084
1,581,292,196
3,875,220,728
47,255,187
534,478,660
6,461,292,924
Contingent liabilities
Bills for collection
Significant accounting policies and notes to accounts
12
9,007,987,789
216,547,286
8,519,776,091
162,129,670
17 & 18
The Schedules referred to above form an integral part of the Balance Sheet.
As per our Report of even date.
M. K. Sharma
Chairman
Dileep Choksi
Director
Chanda Kochhar
Managing Director & CEO
Venkataramanan Vishwanath
Partner
Membership no.: 113156
N. S. Kannan
Executive Director
K. Ramkumar
Executive Director
Rajiv Sabharwal
Executive Director
Place : Mumbai
Date : April 29, 2016
122
P. Sanker
Rakesh Jha
Senior General Manager
Chief Financial Officer
(Legal) & Company Secretary
Ajay Mittal
Chief Accountant
Vishakha Mulye
Executive Director
` in 000s
At
31.03.2016
At
31.03.2015
13
14
527,394,348
153,230,516
680,624,864
490,911,399
121,761,305
612,672,704
15
16
315,153,949
126,835,582
141,372,460
583,361,991
300,515,294
114,958,307
85,445,554
500,919,155
97,262,873
172,614,164
269,877,037
111,753,549
133,185,885
244,939,434
24,316,000
9,340
23,822,375
5,000,000
13,500,000
27,939,000
7,660
2,919,250
(1,270,000)
11,000,000
38,513
29,075,153
35
2,793,737
171,321,884
269,877,037
29,784
28,988,072
35
2,711,469
172,614,164
244,939,434
16.75
16.65
2.00
19.32
19.13
2.00
Schedule
I. INCOME
Interest earned
Other income
TOTAL INCOME
II. EXPENDITURE
Interest expended
Operating expenses
Provisions and contingencies (refer note 18.39)
TOTAL EXPENDITURE
III. PROFIT/(LOSS)
Net profit for the year
Profit brought forward
TOTAL PROFIT/(LOSS)
IV. APPROPRIATIONS/TRANSFERS
17 & 18
The Schedules referred to above form an integral part of the Profit and Loss Account.
As per our Report of even date.
M. K. Sharma
Chairman
Dileep Choksi
Director
Chanda Kochhar
Managing Director & CEO
Venkataramanan Vishwanath
Partner
Membership no.: 113156
N. S. Kannan
Executive Director
K. Ramkumar
Executive Director
Rajiv Sabharwal
Executive Director
Place : Mumbai
Date : April 29, 2016
P. Sanker
Rakesh Jha
Senior General Manager
Chief Financial Officer
(Legal) & Company Secretary
Vishakha Mulye
Executive Director
Ajay Mittal
Chief Accountant
123
` in 000s
Year ended
31.03.2016
Year ended
31.03.2015
121,957,196
158,199,234
(i)
7,541,591
(33,500,856)
83,276,673
2,970,064
28,724,485
(15,375,521)
(280,717)
806
195,313,721
7,344,649
(152,338)
31,412,687
3,847,873
760,070
(15,750,993)
(69,186)
16,390
185,608,386
(ii)
(iii)
(A)
67,185,855
(568,482,751)
598,629,787
(10,782,335)
(1,791,686)
84,758,870
(55,787,902)
224,284,689
47,156,074
(539,603,596)
296,490,730
17,501,230
(13,721,352)
(192,176,914)
(41,676,358)
(48,244,886)
(B)
41,459,527
15,375,521
(7,004,911)
651,004
(89,980,988)
(39,499,847)
8,724,904
15,750,993
(7,874,256)
313,705
(108,910,985)
(91,995,639)
2,824,200
332,678,447
(261,945,823)
(47,669,402)
(31,738,089)
(5,850,668)
(3,292,908)
175,641,266
423,046,153
598,687,419
3,477,284
352,031,564
(217,591,059)
41,044,010
(28,905,082)
150,056,717
(2,065,996)
7,750,196
415,295,957
423,046,153
Adjustments for:
(Increase)/decrease in investments
(Increase)/decrease in advances
Increase/(decrease) in deposits
(Increase)/decrease in other assets
Increase/(decrease) in other liabilities and provisions
Refund/(payment) of direct taxes
Net cash flow from/(used in) operating activities (i)+(ii)+(iii)
Cash flow from investing activities
Redemption/sale from/(investments in) subsidiaries and/or joint ventures
(including application money)
Income from subsidiaries, joint ventures and consolidated entities
Purchase of fixed assets
Proceeds from sale of fixed assets
(Purchase)/sale of held to maturity securities
Net cash used in investing activities
Cash flow from financing activities
Proceeds from issue of share capital (including ESOPs)
Proceeds from long term borrowings
Repayment of long term borrowings
Net proceeds/(repayment) of short term borrowings
Dividend and dividend tax paid
Net cash generated from/(used in) financing activities
Effect of exchange fluctuation on translation reserve
Net increase/(decrease) in cash and cash equivalents (A) + (B) + (C) + (D)
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
(C)
(D)
1. Includes gain of ` 33,683.7 million on sale of part of equity investment in its insurance subsidiaries during the year ended March
31, 2016.
Cash and cash equivalents include cash in hand, balances with RBI, balances with other banks and money at call and short notice.
As per our Report of even date.
M. K. Sharma
Chairman
Dileep Choksi
Director
Chanda Kochhar
Managing Director & CEO
Venkataramanan Vishwanath
Partner
Membership no.: 113156
N. S. Kannan
Executive Director
K. Ramkumar
Executive Director
Rajiv Sabharwal
Executive Director
Place : Mumbai
Date : April 29, 2016
124
P. Sanker
Rakesh Jha
Senior General Manager
Chief Financial Officer
(Legal) & Company Secretary
Ajay Mittal
Chief Accountant
Vishakha Mulye
Executive Director
Schedules
At
31.03.2015
12,750,000
1,500,000
12,750,000
1,500,000
3,500,000
3,500,000
11,594,489
11,548,327
35,048
11,629,537
2,119
11,631,656
46,162
11,594,489
2,119
11,596,608
SCHEDULE 1 - CAPITAL
Authorised capital
6,375,000,000 equity shares of ` 2 each (March 31, 2015: 6,375,000,000 equity shares
of ` 2 each)
15,000,000 shares of ` 100 each (March 31, 2015: 15,000,000 shares of ` 100 each)1
350 preference shares of ` 10 million each (March 31, 2015: 350 preference shares of
` 10 million each)2
1. These shares will be of such class and with such rights, privileges, conditions or restrictions as may be determined by the Bank in
accordance with the Articles of Association of the Bank and subject to the legislative provisions in force for the time being in that behalf.
2. Pursuant to RBI circular the issued and paid-up preference shares are grouped under Schedule 4 - Borrowings.
125
Schedules
At
31.03.2015
163,205,519
24,316,000
187,521,519
135,266,519
27,939,000
163,205,519
65,790,000
13,500,000
79,290,000
54,790,000
11,000,000
65,790,000
318,415,084
2,797,327
321,212,411
314,976,217
3,438,867
318,415,084
1,270,000
(1,270,000)
25,851,750
23,822,375
49,674,125
22,932,500
2,919,250
25,851,750
20,275,848
6,118,977
(9,411,886)
16,982,939
22,341,844
5,475,445
(7,541,441)
20,275,848
28,174,747
28,174,747
36,694
9,340
46,034
95,865
7,660
(66,831)
36,694
26,433,498
5,000,000
31,433,498
171,321,884
885,657,157
35,658,256
66,831
(9,291,589)
26,433,498
172,614,164
792,622,557
1. Includes ` 2,789.2 million (March 31, 2015: ` 3,431.1 million) on exercise of employee stock options.
2. Includes appropriations made for profit on sale of investments in held-to-maturity category, net of taxes and transfer to Statutory
Reserve and profit on sale of land and buildings, net of taxes and transfer to Statutory Reserve.
126
Schedules
At
31.03.2015
39,981,240
548,717,944
1,342,301,249
37,831,640
457,365,884
1,148,601,209
95,975,771
2,187,280,882
4,214,257,086
82,869,479
1,888,959,089
3,615,627,301
4,104,261,083
109,996,003
4,214,257,086
3,503,097,631
112,529,670
3,615,627,301
SCHEDULE 3 - DEPOSITS
A. I. Demand deposits
i) From banks
ii) From others
II. Savings bank deposits
III. Term deposits
i) From banks
ii) From others
TOTAL DEPOSITS
B. I. Deposits of branches in India
II. Deposits of branches outside India
TOTAL DEPOSITS
127
Schedules
At
31.03.2015
40,070,000
34,783,875
119,500,000
18,750,000
163,509,806
83,420,502
134,879,740
83,975,239
13,010,000
13,010,000
98,152,555
98,159,787
3,500,000
3,500,000
187,603,348
624,050,086
216,743,837
688,518,603
22,517,983
21,227,648
59,629,500
458,729,975
583,146,235
56,250,000
404,197,597
553,979,650
1,124,023,693
1,748,073,779
1,035,654,895
1,724,173,498
SCHEDULE 4 - BORROWINGS
I. Borrowings in India
i) Reserve Bank of India
ii) Other banks
iii) Other institutions and agencies
a) Government of India
b) Financial institutions
iv) Borrowings in the form of bonds and debentures (excluding subordinated debt)
v) Application money-bonds
vi) Capital instruments
a)
Innovative Perpetual Debt Instruments (IPDI)
(qualifying as additional Tier 1 capital)
b)
Hybrid debt capital instruments issued as bonds/debentures
(qualifying as Tier 2 capital)
c)
Redeemable Non-Cumulative Preference Shares (RNCPS)
(350 RNCPS of ` 10.0 million each issued to preference share holders of
erstwhile ICICI Limited on amalgamation, redeemable at par on April 20,
2018)
d)
Unsecured redeemable debentures/bonds
(subordinated debt included in Tier 2 capital)
TOTAL BORROWINGS IN INDIA
b)
Hybrid debt capital instruments issued as bonds/debentures
(qualifying as Tier 2 capital)
1. Includes borrowings guaranteed by Government of India for the equivalent of ` 5,132.2 million (March 31, 2015: ` 13,336.4 million).
2. Secured borrowings in I and II above amount to Nil (March 31, 2015: Nil) except borrowings of ` 40,131.2 million (March 31,
2015: ` 129,056.8 million) under Collateralised Borrowing and Lending Obligation, market repurchase transactions with banks and
financial institutions and transactions under Liquidity Adjustment Facility and Marginal Standing Facility.
128
Schedules
At
31.03.2016
At
31.03.2015
47,057,517
1,295,074
32,177,245
51,995,329
26,583,449
188,155,736
347,264,350
48,691,161
2,268,830
41,023,668
43,107,796
23,336,041
158,771,076
317,198,572
1. For the year ended March 31, 2016, includes ` 36,000.0 million towards collective contingency and related reserve (Refer note 18.39).
2. Includes:
a) Proposed dividend amounting to ` 29,075.2 million (March 31, 2015: ` 28,988.1 million).
b) Corporate dividend tax payable amounting to ` 2,793.7 million (March 31, 2015: ` 2,711.5 million).
` in 000s
At
31.03.2016
At
31.03.2015
65,797,469
205,263,419
271,060,888
66,777,513
189,751,556
256,529,069
` in 000s
At
31.03.2016
At
31.03.2015
2,344,575
101,370
2,836,503
65,000
66,771,325
1,650,000
70,867,270
2,901,503
96,881,089
69,743,692
90,134,480
117,452,072
26,879,172
19,284,337
256,759,261
327,626,531
163,615,581
166,517,084
In India
Balances with banks
i)
ii)
TOTAL
a) In current accounts
b) In other deposit accounts
Money at call and short notice
a) With banks
b) With other institutions
129
Schedules
At
31.03.2015
1,106,492,693
19,873,644
92,741,589
64,218,449
1,056,108,701
23,196,661
115,823,333
65,482,766
239,280,471
1,522,606,846
242,180,386
1,502,791,847
21,715,158
46,063,582
13,732,380
17,824,004
49,803,396
10,872,949
81,511,120
1,604,117,966
78,500,349
1,581,292,196
1,554,622,302
32,015,456
1,522,606,846
1,529,085,419
26,293,572
1,502,791,847
82,517,459
1,006,339
81,511,120
1,604,117,966
79,061,690
561,341
78,500,349
1,581,292,196
SCHEDULE 8 - INVESTMENTS
I.
i)
ii)
iii)
iv)
v)
vi) O
thers (commercial paper, mutual fund units, pass through certificates,
security receipts and certificate of deposits)2
Government securities
Other approved securities
Shares (includes equity and preference shares)
Debentures and bonds
Subsidiaries and/or joint ventures1
A. Investments in India
1. During the year, the Bank has sold a part of equity investment in its subsidiaries, ICICI Prudential Life Insurance Company Limited
and ICICI Lombard General Insurance Company Limited.
2. In accordance with RBI circular dated July 16, 2015, investment in Rural Infrastructure and Development Fund and other related
deposits of ` 280,661.8 million (March 31, 2015: ` 284,508.2 million) has been re-classified under Schedule 11 - Other Assets.
130
Schedules
At
31.03.2016
At
31.03.2015
125,883,999
845,132,942
3,381,622,478
4,352,639,419
3,508,024,917
91,968,107
752,646,395
4,352,639,419
124,699,264
678,157,310
3,072,364,154
3,875,220,728
3,246,003,157
96,877,890
532,339,681
3,875,220,728
924,348,694
44,329,100
283,403
2,445,558,803
3,414,520,000
762,092,862
35,374,080
146,618
2,136,406,625
2,934,020,185
4,860,662
2,483,044
37,850,081
737,769,046
157,639,630
938,119,419
4,352,639,419
44,434,806
765,973,178
128,309,515
941,200,543
3,875,220,728
` in 000s
At
31.03.2016
At
31.03.2015
40,522,620
29,414,022
(600,593)
(10,859,345)
58,476,704
39,639,238
1,095,947
(212,565)
(9,896,951)
30,625,669
46,222,026
6,217,940
(2,306,918)
(35,255,187)
14,877,861
42,567,275
6,173,584
(2,518,833)
(31,918,804)
14,303,222
17,299,544
(14,884,909)
2,414,635
75,769,200
17,299,544
(14,973,248)
2,326,296
47,255,187
Premises
At cost at March 31 of preceding year
Additions during the year
Deductions during the year
Depreciation to date, accumulated lease adjustment and provisions5
Net block
TOTAL FIXED ASSETS
1. Includes ` 28,174.7 million added on revaluation carried out by the Bank on March 31, 2016.
2. Includes depreciation charge amounting to ` 1,291.2 million (March 31, 2015: ` 1,270.2 million).
3. Includes assets of ` 13.6 million (March 31, 2015: ` 2.0 million) which are held for sale.
131
Schedules
Includes depreciation charge amounting to ` 5,501.7 million (March 31, 2015: ` 4,968.7 million).
Includes depreciation charge/lease adjustment amounting to ` 192.2 million (March 31, 2015: ` 350.6 million).
` in 000s
At
31.03.2016
At
31.03.2015
60,510,784
30,200,188
1,710
17,822,999
1,224,389
11,494,126
47,700,357
280,661,817
126,120,673
575,737,043
57,085,691
32,298,374
2,230
687,962
1,841,577
11,403,692
14,480,041
284,508,152
132,170,941
534,478,660
1. Includes certain non-banking assets acquired in satisfaction of claims which are in the process of being transferred in the Bank's
name.
2. Includes assets amounting to ` 17,218.5 million acquired by the Bank in satisfaction of claims under debt-asset swap transactions
with certain borrowers during the year ended March 31, 2016.
` in 000s
At
31.03.2016
At
31.03.2015
35,360,765
12,455
3,567,729,012
39,770,154
65,787
2,898,724,970
749,922,608
255,030,143
472,780,107
460,007,024
3,414,397,317
52,748,358
9,007,987,789
755,159,468
238,105,768
496,588,147
514,309,351
3,538,297,671
38,754,775
8,519,776,091
132
Schedules
Year ended
31.03.2015
389,431,536
106,253,486
1,582,379
30,126,947
527,394,348
356,310,839
105,927,693
1,950,994
26,721,873
490,911,399
1. Interest on Rural Infrastructure and Development Fund (RIDF) and other related deposits of ` 16,618.9 million (March 31, 2015:
` 13,518.0 million) has been re-classified from line item 'Income on investments' to 'Others' consequent to re-classification of RIDF
deposits from Schedule 8 - Investments to Schedule 11 - Other Assets.
2. Includes interest on income tax refunds amounting to ` 3,119.3 million (March 31, 2015: ` 2,707.7 million).
3. Includes interest and amortisation of premium on non-trading interest rate swaps and foreign currency swaps.
` in 000s
Year ended
31.03.2016
Year ended
31.03.2015
74,616,599
42,582,615
(4,628,535)
280,717
22,715,610
69,798,945
15,502,667
(18,002)
69,186
20,420,685
15,352,148
2,311,362
153,230,516
15,590,636
397,188
121,761,305
VI. Income earned by way of dividends, etc. from subsidiary companies and/or joint
ventures abroad/in India
VII. Miscellaneous income (including lease income)
TOTAL OTHER INCOME
1. Includes profit on sale of part of equity investment in its subsidiaries, ICICI Prudential Life Insurance Company Limited and ICICI
Lombard General Insurance Company Limited.
2. Includes profit/(loss) on sale of assets given on lease.
3. Includes exchange profit/(loss) on repatriation of retained earnings/capital from overseas branches/subsidiaries.
` in 000s
Year ended
31.03.2016
Year ended
31.03.2015
215,488,232
11,093,814
88,571,903
315,153,949
202,939,485
12,632,629
84,943,180
300,515,294
133
Schedules
Year ended
31.03.2015
50,023,472
9,750,002
1,491,557
2,109,728
6,792,869
192,206
9,998
73,315
436,767
3,026,474
10,030,088
3,922,060
9,340,329
29,636,717
126,835,582
47,498,752
8,904,434
1,276,509
1,616,167
6,238,893
350,597
7,517
66,793
382,258
2,624,947
8,662,192
3,604,748
7,915,023
25,809,477
114,958,307
134
Schedules
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. Further, the interest income on loan accounts where restructuring has been approved by the Bank
under SDR scheme of RBI is recognised upon realisation.
b) Income from finance leases is calculated by applying the interest rate implicit in the lease to the net investment
outstanding on the lease over the primary lease period. Finance leases entered into prior to April 1, 2001 have
been accounted for as per the Guidance Note on Accounting for Leases issued by the Institute of Chartered
Accountants of India (ICAI). The finance leases entered subsequent to April 1, 2001 have been accounted for as
per Accounting Standard 19 Leases.
c) Income on discounted instruments is recognised over the tenure of the instrument on a constant yield basis.
d) Dividend income is accounted on accrual basis when the right to receive the dividend is established.
f) Project appraisal/structuring fee is accounted for on the completion of the agreed service.
g) Arranger fee is accounted for as income when a significant portion of the arrangement/syndication is completed.
h) Commission received on guarantees issued is amortised on a straight-line basis over the period of the guarantee.
i)
The annual/renewal fee on credit cards is amortised on a straight line basis over one year.
j)
All other fees are accounted for as and when they become due.
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Schedules
k) N
et income arising from sell-down/securitisation of loan assets prior to February 1, 2006 has been recognised
upfront as interest income. With effect from February 1, 2006, net income arising from securitisation of loan
assets is amortised over the life of securities issued or to be issued by the special purpose vehicle/special purpose
entity to which the assets are sold. 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 the sell-down/securitisation and direct assignment of loan assets is recognised at the time of sale.
l)
The Bank deals in bullion business on a consignment basis. The difference between price recovered from
customers and cost of bullion is accounted for at the time of sales to the customers. The Bank also deals in
bullion on a borrowing and lending basis and the interest paid/received is accounted on accrual basis.
2. Investments
Investments are accounted for in accordance with the extant RBI guidelines on investment classification and valuation
as given below.
1. A
ll investments are classified into Held to Maturity, Available for Sale and Held for Trading. 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.
2. Held to Maturity 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.
3. Available for Sale and Held for Trading 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 Available
for Sale, is amortised over the remaining period to maturity on constant yield basis and straight line basis
respectively. Quoted investments are valued based on the trades/quotes on the recognised stock exchanges,
subsidiary general ledger account transactions, price list of RBI or prices declared by Primary Dealers Association
of India jointly with Fixed Income Money Market and Derivatives Association (FIMMDA), periodically.
The market/fair value of unquoted government securities which are in the 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 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.
Unquoted equity shares are valued at the break-up value, if the latest balance sheet is available, or at ` 1, as per
RBI guidelines.
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, if any, being
unrealised, is ignored, while net depreciation is provided for. The depreciation on securities acquired by way of
conversion of outstanding loans is fully provided for. Non-performing investments are identified based on the
RBI guidelines.
Depreciation on equity shares acquired and held by the Bank under SDR scheme is provided over a period of
four calendar quarters from the date of conversion of debt into equity in accordance with the RBI guidelines.
4. T
reasury bills, commercial papers and certificate of deposits being discounted instruments, are valued at carrying
cost.
5. The units of mutual funds are valued at the latest repurchase price/net asset value declared by the mutual fund.
136
Schedules
6. C
osts including brokerage and commission pertaining to investments, paid at the time of acquisition, are charged
to the profit and loss account. Cost of investments is computed based on the First-In-First-Out (FIFO) method.
7. E
quity investments in subsidiaries/joint ventures are categorised as Held to Maturity in accordance with
RBI guidelines. The Bank assesses these investments for any permanent diminution in value and appropriate
provisions are made.
8. P
rofit/loss on sale of investments in the Held to Maturity category is recognised in the profit and loss account
and profit is thereafter appropriated (net of applicable taxes and statutory reserve requirements) to Capital
Reserve. Profit/loss on sale of investments in Available for Sale and Held for Trading categories is recognised
in the profit and loss account.
9. M
arket repurchase and reverse repurchase transactions are accounted for as borrowing and lending transactions
respectively in accordance with the extant RBI guidelines. The transactions with RBI under Liquidity Adjustment
Facility (LAF) are accounted for as borrowing and lending transactions.
10. Broken period interest (the amount of interest from the previous interest payment date till the date of purchase/
sale of instruments) on debt instruments is treated as a revenue item.
11. 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 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 for.
12. 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.
13. 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-tomarket loss is charged to profit and loss account and gain, if any, is ignored as per RBI guidelines.
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 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. Further, NPAs are classified into sub-standard, doubtful and loss assets based on the
criteria stipulated by RBI.
In the case of corporate loans and advances, provisions are made for sub-standard and doubtful assets at rates
prescribed by RBI. Loss assets and the unsecured portion of doubtful assets are provided/written-off as per the
extant RBI guidelines. For loans and advances booked in overseas branches, which are standard as per the extant
RBI guidelines but are classified as NPAs based on host country guidelines, provisions are made as per the host
country regulations. For loans and advances booked in overseas branches, which are NPAs as per the extant RBI
guidelines and as per host country guidelines, provisions are made at the higher of the provisions required under
RBI regulations and host country regulations. Provisions on homogeneous retail loans and advances, subject to
minimum provisioning requirements of RBI, are assessed at a borrower level, on the basis of the ageing of the loans
in the non-performing category. In respect of loans classified as fraud, the entire amount, without considering the
value of security, is provided for over a period of four quarters starting from the quarter in which fraud has been
detected. In accounts where there has been delay in reporting the fraud to the RBI, the entire amount is provided
immediately. In respect of borrowers classified as non-cooperative borrowers, willful defaulters and NPAs covered
under distressed assets framework of RBI, the Bank makes accelerated provisions as per extant RBI guidelines.
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Schedules
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 also holds provisions on loans under SDR scheme of
RBI. The assessment of incremental specific provisions is made after taking into consideration the existing specific
provision held. The specific provisions on retail loans and advances held by the Bank are higher than the minimum
regulatory requirements.
a) P
rovision due to diminution in the fair value of restructured/rescheduled loans and advances is made in
accordance with the applicable RBI guidelines.
b) A
mounts recovered against debts written-off in earlier years and provisions no longer considered necessary in
the context of the current status of the borrower are recognised in the profit and loss account.
c) T
he 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, provision on exposures
to step-down subsidiaries of Indian companies and floating provision taken over from erstwhile Bank of Rajasthan
upon amalgamation. For performing loans and advances in overseas branches, the general provision is made at
higher of host country regulations requirement and RBI requirement.
d) 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.
In respect of non-performing loans and advances accounts subjected to restructuring, the account is upgraded
to standard only after the specified period i.e. a period of one year after the date when first payment of interest
or of principal, whichever is later, falls due, subject to satisfactory performance of the account during the period.
A standard restructured loan is upgraded to the standard category when satisfactory payment performance is
evidenced during the specified period and after the loan reverts to the normal level of standard asset provisions/
risk weights.
The Bank transfers commercial and consumer loans through securitisation transactions. The transferred loans are
de-recognised and gains/losses are accounted for, 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
Bank accounts for any loss arising from securitisation immediately at the time of sale and 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 over the life of the transaction based on the method prescribed in the guidelines.
In the case of loans sold to an asset reconstruction company, the excess provision is not reversed but is utilised to
meet the shortfall/loss on account of sale of other financial assets to securitisation company (SC)/reconstruction
company (RC) in accordance with RBI guideline dated July 13, 2005. With effect from February 26, 2014, in accordance
with RBI guidelines, in case of non-performing loans sold to SCs/RCs, the Bank reverses the excess provision in profit
and loss account in the year in which amounts are received.
Fixed assets are carried at cost and include amounts added on revaluation of premises, less accumulated depreciation
and impairment, if any. Cost includes freight, duties, taxes and incidental expenses related to the acquisition and
138
Schedules
Useful life
60 years
60 years or lease period whichever is lower
8 years
10 years
3 years
6 years, 8 months
5 years
4 years
1. The useful life of 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.
a) A
ssets purchased/sold during the year are depreciated on a pro-rata basis for the actual number of days the
asset has been put to use.
b) Items costing upto ` 5,000/- are depreciated fully over a period of 12 months from the date of purchase.
c) Assets at residences of Banks employees are depreciated over the estimated useful life of 5 years.
d) In case of revalued/impaired assets, depreciation is provided over the remaining useful life of the assets with
reference to revised asset values.
e) T
he profit on sale of premises is appropriated to capital reserve, net of transfer to statutory reserve and taxes, in
accordance with RBI guidelines.
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 included in the profit and loss account.
Both monetary and non-monetary foreign currency assets and liabilities of non-integral foreign operations are
translated relevant to 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. On the disposal/partial disposal of a non-integral foreign
operation, the cumulative/proportionate amount of the exchange differences which has been accumulated in the
foreign currency translation reserve and which relates to that operation are recognised as income or expenses in the
same period in which the gain or loss on disposal is recognised.
The premium or discount arising on inception of forward exchange contracts that are entered into to establish the
amount of reporting currency required or available at the settlement date of a transaction is amortised over the life
of the contract. 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.
Contingent liabilities on account of guarantees, endorsements and other obligations denominated in foreign
currencies are disclosed at the closing exchange rates notified by FEDAI relevant to the balance sheet date.
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The Bank enters into derivative contracts such as foreign currency options, interest rate and currency swaps, credit
default swaps and cross currency interest rate swaps.
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. Hedge swaps are accounted for on an accrual basis and are not marked to market unless their
underlying transaction is marked to market.
Foreign currency and rupee derivative contracts entered into for trading purposes are marked to market and the
resulting gain or loss (net of provisions, if any) is accounted for in the profit and loss account. Pursuant to RBI
guidelines, any receivables under derivative contracts which remain overdue for more than 90 days and markto-market gains on other derivative contracts with the same counter-parties are reversed through profit and loss
account.
The Employees Stock Option Scheme (the Scheme) provides for grant of options on the Banks equity shares to
wholetime directors and employees of the Bank and its subsidiaries. The Scheme provides that employees are
granted an option to subscribe to equity shares of the Bank that vest in a graded manner. The options may be
exercised within a specified period. The Bank follows the intrinsic value method to account for its 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 latest closing price, immediately prior to the grant date, which is generally the date of the meeting of the
Board Governance, Remuneration & Nomination Committee in which the options are granted, on the stock exchange
on which the shares of the Bank are listed. If the shares are listed on more than one stock exchange, then the stock
exchange where there is highest trading volume on the said date is considered.
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 a trust which administers the funds on its own account or through
insurance companies.
The actuarial gains or losses arising during the year are recognised in the profit and loss account.
Actuarial valuation of the gratuity liability is determined by an 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 Bank contributes 15.00% of the total annual basic salary of certain employees to superannuation funds, a defined
contribution plan, managed and administered by insurance companies. Further, the Bank contributes 10.00% 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 Bank also gives an option to its
employees allowing them to receive the amount 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 employee during the year
are recognised in the profit and loss account.
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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 employees years
of service with the Bank and applicable salary.
Actuarial valuation of the pension liability is determined by an 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 employers 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.
Actuarial valuation for the interest rate guarantee 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.
Leave encashment
The Bank provides for leave encashment benefit based on actuarial valuation conducted by an independent actuary.
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. 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 at 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 reassessed at each reporting date, based upon managements judgement as to whether their realisation is considered
as reasonably/virtually certain.
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.
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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.
Basic and diluted earnings per share are computed in accordance with Accounting Standard 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 during 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.
Lease payments 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.
Cash and cash equivalents include cash in hand, balances with RBI, balances with other banks and money at call and
short notice.
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Basic and diluted earnings per equity share are computed in accordance with AS 20 Earnings per share. Basic
earnings per equity share are computed by dividing net profit after tax by the weighted average number of equity
shares outstanding during the year. The 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
Year ended
March 31, 2016
Year ended
March 31, 2015
5,807,339,489
97,262.9
16.75
5,785,726,485
111,753.5
19.32
5,840,224,893
97,262.9
16.65
2.00
5,842,092,456
111,753.5
19.13
2.00
Basic
Weighted average no. of equity shares outstanding
Net profit
Basic earnings per share (`)
Diluted
Weighted average no. of equity shares outstanding
Net profit
Diluted earnings per share (`)
Nominal value per share (`)
2. Business/information ratios
The following table sets forth, for the periods indicated, the business/information ratios.
(i)
(ii)
(iii)
(iv)
(v)
(vi) B
usiness (average deposits plus average advances) per employee4,5
(` in million)
Year ended
March 31, 2016
Year ended
March 31, 2015
8.06%
2.34%
3.65%
1.49%
1.4
8.19%
2.03%
3.29%
1.86%
1.6
94.3
83.2
1. For the purpose of computing the ratio, working funds 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.
2. Operating profit is profit for the year before provisions and contingencies.
3. For the purpose of computing the ratio, assets represent monthly average of total assets computed for reporting dates of Form
X submitted to RBI under Section 27 of the Banking Regulation Act, 1949.
4. Computed based on average number of employees which include sales executives, employees on fixed term contracts and
interns.
5. The average deposits and the average advances represent the simple average of the figures reported in Form A to RBI under
Section 42(2) of the Reserve Bank of India Act, 1934.
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The Bank is subject to the Basel III capital adequacy guidelines stipulated by RBI with effect from April 1, 2013. The
guidelines provide a transition schedule for Basel III implementation till March 31, 2019. As per the guidelines, the
Tier-1 capital is made up of Common Equity Tier-1 (CET1) and Additional Tier-1.
At March 31, 2016, Basel III guidelines require the Bank to maintain a minimum capital to risk-weighted assets ratio
(CRAR) of 9.63% with minimum CET1 CRAR of 6.13% and minimum Tier-1 CRAR of 7.63%. The minimum total CRAR,
CET1 CRAR and Tier-1 CRAR requirement include capital conservation buffer of 0.63%.
The following table sets forth, for the period indicated, computation of capital adequacy as per Basel III framework.
` in million, except percentages
At
March 31, 2016
At
March 31, 2015
13.00%
13.09%
12.78%
12.78%
3.55%
16.64%
4.24%
17.02%
[Perpetual Cumulative Preference Shares (PCPS)/Redeemable NonCumulative Preference Shares (RNCPS)/Redeemable Cumulative Preference
Shares (RCPS)]
The Basel Committee for 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 shall be implemented in the phased manner from January 1, 2015 as given below.
144
2015
60.0%
2016
70.0%
2017
80.0%
2018
90.0%
2019
100.0%
657,810.1
221,848.3
22,192.3
199,656.0
631,804.6
46,302.7
509,293.2
76,208.7
58,390.8
9,038.0
373.7
48,979.1
70,145.8
79,602.7
1,061,792.2
319,975.3
23,851.8
343,827.1
657,810.1
717,965.1
91.62%
N.A.
2,440,406.7
443,846.9
1,996,559.8
1,100,323.2
185,211.0
838,903.5
76,208.7
N.A.
434,570.4
9,038.0
373.7
425,158.7
70,145.8
1,918,495.8
N.A.
381,330.5
43,097.3
424,427.8
N.A.
N.A.
N.A.
476.8
379,313.3
39,648.7
1,936,332.7
N.A.
252,788.5
43,314.3
296,102.8
N.A.
N.A.
N.A.
11,577.8
477,248.4
42,674.5
N.A.
391,367.9
2,126,588.6
405,084.6
1,721,504.0
840,202.0
320,279.2
N.A.
Total
unweighted
value
(average)
476.8
49,011.6
39,648.7
96,816.6
782,914.9
197,031.7
24,867.1
221,898.8
569,153.4
569,153.4
101.45%
11,577.8
270,234.5
42,674.5
61,066.2
192,404.6
20,254.2
172,150.4
392,978.7
80,069.8
569,153.4
Total
weighted
value
(average)
365.1
413,544.9
65,305.8
1,982,024.6
N.A.
254,135.7
38,951.4
293,087.1
N.A.
N.A.
N.A.
8,462.4
746,400.2
83,168.5
N.A.
422,372.4
2,315,663.0
437,369.7
1,878,293.3
1,004,305.9
174,737.2
N.A.
Total
unweighted
value
(average)
365.1
53,138.7
65,305.8
99,101.2
935,401.5
205,096.8
21,510.6
226,607.4
600,439.4
708,764.1
84.72%
8,462,4
372,447.7
83,168.5
61,996.2
209,697.8
21,868.5
187,829.3
499,300.5
43,684.3
600,439.4
Total
weighted
value
(average)
426.1
408,673.0
65,243.5
2,028,664.1
N.A.
242,066.1
39,839.3
281,905.4
N.A.
N.A.
N.A.
8,886.5
740,751.0
67,271.4
N.A.
417,985.6
2,253,131.1
427,509.4
1,825,621.7
973,669.5
165,647.1
N.A.
Total
unweighted
value
(average)
426.1
52,895.0
65,243.5
101,433.2
907,908.7
187,179.4
22,469.5
209,648.9
605,808.5
698,259.8
86.76%
8,886.5
366,403.6
67,271.4
62,207.6
203,937.6
21,375.5
182,562.1
475,086.8
41,411.8
605,808.5
Total
weighted
value
(average)
` in million
414.8
398,207.2
49,265.9
1,940,289.6
N.A.
245,792.4
38,273.5
284,065.8
N.A.
N.A.
N.A.
8,782.9
661,388.5
38,343.9
N.A.
407,404.9
2,166,232.6
415,068.1
1,751,164.5
843,829.9
144,097.4
N.A.
Total
unweighted
value
(average)
414.8
51,920.1
49,265.9
97,014.5
819,337.0
193,081.9
21,435.5
214,517.4
534,184.8
604,819.6
88.32%
8,782.9
341,700.8
38,343.9
61,117.7
195,869.9
20,753.4
175,116.4
416,069.0
36,024.3
534,184.8
Total
weighted
value
(average)
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 overseas branches is maintained taking into consideration both
host country as well as the RBI regulations.
Particulars
The Bank has been computing its LCR on a monthly basis since January 2015 as per the extant RBI guidelines. The following tables set forth
the average of unweighted and weighted value of the LCR of the Bank, based on month end values, for the three months ended March 31,
2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015.
Schedules
145
Schedules
The Bank during the three months ended March 31, 2016 maintained average HQLA (after haircut) of ` 657,810.1
million (March 31, 2015: ` 569,153.4 million) against the average liquidity requirement of ` 502,575.6 million (March
31, 2015: ` 336,609.6 million) at minimum LCR requirement of 70%. HQLA primarily included 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 ` 498,952.5 million (March 31, 2015: ` 405,228.9 million). Additionally,
cash, balance in excess of cash reserve requirement with RBI and the Central banks of countries where Banks
branches are located amounting to ` 104,655.2 million (March 31, 2015: ` 119,941.0 million),. Further, average level 2
assets primarily consisting of AA- and above rated corporate bonds and commercial papers amounted to ` 33,334.1
million (March 31, 2015: ` 29,028.0 million).
At March 31, 2016, top liability products/instruments and their percentage contribution to the total liabilities of the Bank
were saving account deposits 18.63% (March 31, 2015: 17.78%), term deposits 31.68% (March 31, 2015: 30.52%), bond
borrowings 12.81% (March 31, 2015: 13.83%) and current account deposits 8.17% (March 31, 2015: 7.66%). Top 20
depositors constituted 7.35% (March 31, 2015: 6.43%) of total deposits of the Bank at March 31, 2016. Further, the total
borrowings mobilised from significant counterparties (from whom, the funds borrowed were more than 1.00% of the
Banks total liabilities), were 11.81% (March 31, 2015: 13.66%) of the total liabilities of the Bank at March 31, 2016.
The weighted cash outflows are primarily driven by unsecured wholesale funding which includes operational
deposits, non-operational deposits and unsecured debt. During Q4-2016, unsecured wholesale funding contributed
59.50% (March 31, 2015: 50.19%) 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 contributed 20.89% (March 31, 2015: 24.58%) and 7.50% (March 31, 2015:
12.37%) of the total weighted cash outflows respectively. The other contingent funding obligations primarily include
bank guarantees (BGs) and letters of credit (LCs) issued on behalf of the Banks clients.
Liquidity requirement of the Bank on account of market valuation changes for derivative transactions was limited as
the Bank has not executed any Credit Support Annex (CSA) requiring it to post collateral for derivative transactions.
However, the Bank may be required to post additional collateral due to market valuation changes on derivative
transactions settled through Clearing Corporation of India (CCIL) which is a Qualified Central Counterparty (QCCP)
in India including the Clearing Corporation of India (CCIL). The outflow on account of market valuation change for
derivative transactions with QCCPs has been considered based on the prescribed look back approach.
Based on the above, monthly average LCR of the Bank for the three months ended March 31, 2016 was 91.62% (March 31,
2015: 101.45%). During the three months ended on March 31, 2016, other than Indian Rupee, USD was the only significant
foreign currency which constituted more than 5.00% of the balance sheet size of the Bank. Average LCR of the Bank for
USD currency was 87.90% (March 31, 2015: 100.83%) for the three months ended March 31, 2016.
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 BCBS document International Convergence of
Capital Measurement and Capital Standards: A Revised Framework.
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.
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.
Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, which are
not included under Retail Banking.
146
Schedules
The following tables set forth, for the periods indicated, the business segment results on this basis.
` in million
For the year ended March 31, 2016
Retail
Banking
Wholesale
Banking
Treasury
Other Banking
Business
391,878.0
328,923.5
487,496.2
18,178.6
38,977.4
(12,454.3)
90,974.1
4,460.0
1,724,805.5 2,663,659.1
2,580,529.7
160,056.2
111,003.7
Particulars
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Revenue
Less: Inter-segment revenue
Total revenue (1)(2)
Segment results
Unallocated expenses
Operating profit (4)-(5)
Income tax expenses (net of deferred tax credit)
Net profit (6)-(7)
Segment assets
Unallocated assets1
Total assets (9)+(10)
Segment liabilities
Unallocated liabilities
Total liabilities (12)+(13)
Capital expenditure
Depreciation
1.
2.
Includes tax paid in advance/tax deducted at source (net) and deferred tax asset (net).
Includes share capital and reserves and surplus.
6,474.5
5,718.9
937.0
1,016.3
11.2
14.9
34.5
235.0
Total
1,226,476.3
545,851.4
680,624.9
121,957.2
121,957.2
24,694.3
97,262.9
7,129,050.5
77,900.5
7,206,951.0
7,206,951.0
7,206,951.0
7,457.2
6,985.1
` in million
For the year ended March 31, 2015
Particulars
Retail
Banking
Wholesale
Banking
Treasury
Other Banking
Business
329,911.8
335,025.1
439,310.6
15,815.1
27,242.8
62,240.7
64,499.5
4,216.2
125,687.6
6,414,514.5
46,778.4
6,461,292.9
105,272.6
6,461,292.9
6,461,292.9
33.7
391.8
7,269.5
6,589.5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Revenue
Less: Inter-segment revenue
Total revenue (1)(2)
Segment results
Unallocated expenses
Operating profit (4)-(5)
Income tax expenses (including deferred tax credit)
Net profit (6)-(7)
Segment assets
Unallocated assets1
Total assets (9)+(10)
Segment liabilities
Unallocated liabilities
Total liabilities (12)+(13)
Capital expenditure
Depreciation
1.
2.
Includes tax paid in advance/tax deducted at source (net) and deferred tax asset (net).
Includes share capital and reserves and surplus.
6,109.1
5,111.4
1,110.3
1,073.5
Geographical segments
The Bank reports its operations under the following geographical segments.
16.4
12.8
Foreign operations comprise branches outside India and offshore banking unit in India.
Total
1,120,062.6
507,389.9
612,672.7
158,199.2
158,199.2
46,445.7
111,753.5
147
Schedules
The following table sets forth, for the periods indicated, geographical segment revenues.
` in million
Revenue
Year ended
March 31, 2016
Year ended
March 31, 2015
620,424.0
60,200.9
680,624.9
557,994.4
54,678.3
612,672.7
Domestic operations
Foreign operations
Total
The following table sets forth, for the periods indicated, geographical segment assets.
` in million
Assets
Domestic operations
Foreign operations
Total
At
March 31, 2016
At
March 31, 2015
5,940,663.4
1,188,387.1
7,129,050.5
5,210,699.8
1,203,814.7
6,414,514.5
Segment assets do not include tax paid in advance/tax deducted at source (net) and deferred tax asset (net).
The following table sets forth, for the periods indicated, capital expenditure and depreciation thereon for the
geographical segments.
` in million
Capital expenditure
incurred during
Depreciation
provided during
Year ended
Year ended
Year ended
Year ended
March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015
Domestic operations
Foreign operations
Total
7,331.5
7,203.7
6,916.9
125.7
65.8
68.2
50.4
7,457.2
7,269.5
6,985.1
6,589.5
6,539.1
6. Maturity pattern
The following table sets forth, the maturity pattern of assets and liabilities of the Bank at March 31, 2016.
` in million
Maturity buckets
Day 1
2 to 7 days
8 to 14 days
15 to 28 days
29 days to 3 months
3 to 6 months
6 months to 1 year
1 to 3 years
3 to 5 years
Above 5 years
Total
1.
2.
3.
Loans &
Advances1
Investment
securities1
Deposits1
Borrowings1,2
Total foreign
currency
assets3
11,629.7
35,120.3
30,867.1
66,217.9
262,943.9
293,775.4
544,822.2
1,456,284.9
716,918.6
934,059.4
4,352,639.4
240,862.3
91,635.5
54,447.0
92,784.1
66,139.0
83,065.1
142,619.8
154,822.1
278,198.4
399,544.6
1,604,117.9
44,306.0
115,371.8
80,240.7
64,017.7
297,478.2
262,497.9
536,836.4
453,906.8
1,185,524.7
1,174,076.9
4,214,257.1
1,775.6
48,634.1
8,450.3
22,148.0
103,160.0
132,031.8
401,445.3
422,158.0
404,176.1
204,094.6
1,748,073.8
139,997.4
149,589.0
24,188.8
56,646.8
116,419.5
84,434.7
170,622.1
288,600.3
175,208.6
248,472.2
1,454,179.4
148
Total foreign
currency
liabilities3
6,297.5
20,530.7
17,157.8
41,235.2
112,508.2
61,002.1
548,262.6
357,848.9
285,712.5
85,671.8
1,536,227.3
Schedules
The following table sets forth the maturity pattern of assets and liabilities of the Bank at March 31, 2015.
` in million
Maturity buckets
Day 1
2 to 7 days
8 to 14 days
15 to 28 days
29 days to 3 months
3 to 6 months
6 months to 1 year
1 to 3 years
3 to 5 years
Above 5 years
Total
1.
2.
3.
Loans &
Advances1
Investment
securities1
Deposits1
Borrowings1,2
Total foreign
currency
assets3
13,214.3
16,158.5
25,935.4
63,509.3
240,409.2
273,277.9
403,853.0
1,563,199.5
592,051.6
683,612.0
3,875,220.7
141,697.8
141,036.3
78,590.9
112,192.5
68,952.6
65,431.5
159,217.2
139,682.6
214,532.1
459,958.6
1,581,292.1
41,567.5
119,412.1
75,983.5
95,239.7
239,316.0
265,327.9
335,020.7
533,335.7
976,972.0
933,452.2
3,615,627.3
598.0
84,014.6
24,794.1
29,923.7
94,042.6
157,163.6
264,608.5
384,309.3
217,966.7
466,752.4
1,724,173.5
151,131.3
14,229.3
28,086.5
50,989.7
102,526.4
95,118.0
84,371.5
360,253.4
193,476.2
241,727.0
1,321,909.3
Total foreign
currency
liabilities3
4,647.3
14,626.4
18,353.3
27,824.4
100,679.1
126,379.4
234,962.4
486,870.8
205,960.2
188,573.1
1,408,876.4
7. Preference shares
Certain government securities amounting to ` 3,189.8 million at March 31, 2016 (March 31, 2015: ` 3,088.6 million)
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.
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% of the aggregate number of the issued
equity shares of the Bank on the date(s) of the grant of options. Under the stock option scheme, eligible employees are
entitled to apply for equity shares. Options granted prior to March, 2014, except mentioned below, 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. Options granted in April, 2009 vest 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 vest in a graded manner over a five-years 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. 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 will vest to the extent of 50% on April 30, 2017 and the balance on April 30, 2018.
The options granted in September 2015 will vest to the extent of 50% on April 30, 2018 and 50% on April 30, 2019.
However for the options granted in September 2015 if the participants employment terminates due to retirement
(including pursuant to any early/voluntary retirement scheme), the whole of the unvested options would lapse. The
options can be exercised within 10 years from the date of grant or five years from the date of vesting, whichever is
later. The exercise price of Banks options, except mentioned below, was the last closing price on the stock exchange,
which recorded highest trading volume preceding the date of grant of options. Hence, there was no compensation
cost based on intrinsic value of options.
In February 2011, the Bank granted 15,175,000 options to eligible employees and whole-time Directors of the Bank
and certain of its subsidiaries at an exercise price of ` 193.40. Of these options granted, 50% vested on April 30, 2014
and the balance 50% vested on April 30, 2015. The options can be exercised within 10 years from the date of grant
or five years from the date of vesting, whichever is later. Based on intrinsic value of options, compensation cost of
` 0.8 million was recognised during the year ended March 31, 2016 (March 31, 2015: ` 16.4 million).
149
Schedules
If the Bank had used the fair value of options based on binomial tree model, compensation cost in the year ended
March 31, 2016 would have been higher by ` 3,726.5 million and proforma profit after tax would have been
` 93.54 billion. On a proforma basis, the Banks basic and diluted earnings per share would have been ` 16.11 and
` 16.02 respectively. The key assumptions used to estimate the fair value of options granted during the year ended
March 31, 2016 are given below.
Risk-free interest rate
Expected life
Expected volatility
Expected dividend yield
7.58% to 8.19%
3.16 to 5.78 years
30.67% to 32.77%
1.62% to 2.11%
The weighted average fair value of options granted during the year ended March 31, 2016 is ` 100.50 (March 31,
2015: ` 90.09).
The following table sets forth, for the periods indicated, the summary of the status of the Banks stock option plan.
` except number of options
Stock options outstanding
Year ended March 31, 2015
Weighted
average
exercise price
148,433,700
64,904,500
4,189,850
17,523,785
191,624,565
89,788,515
205.02
289.28
260.67
161.16
236.36
198.08
140,521,765
32,375,500
1,382,765
23,080,800
148,433,700
75,938,800
183.74
259.96
235.40
150.66
205.02
180.80
Number of shares
arising out of options
60-99
100-199
2,556,700
86.96
60,755,715
180.24
3.03
3.65
200-299
96,037,150
251.67
7.85
300-399
32,275,000
308.26
9.08
The following table sets forth, the summary of stock options outstanding at March 31, 2015.
Range of exercise price
(` per share)
Number of
options
The following table sets forth, the summary of stock options outstanding at March 31, 2016.
Range of exercise price
(` per share)
Number of
options
Weighted
average
exercise price
Number of shares
arising out of options
Weighted average
exercise price (` per share)
60-99
100-199
4,771,000
74,346,685
80.81
177.35
2.41
4.41
200-299
69,291,015
243.22
8.06
300-399
25,000
321.17
9.59
The options were exercised regularly throughout the period and weighted average share price as per NSE price
volume data during the year ended March 31, 2016 was ` 273.37 (March 31, 2015: ` 311.74).
9. Subordinated debt
During the year ended March 31, 2016, the Bank has not raised subordinated debt qualifying for Tier-2 capital (March
31, 2015: Nil).
150
Schedules
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
Minimum
Maximum
Daily average
outstanding
outstanding
outstanding
balance during the balance during the balance during the
Outstanding
balance at
March 31, 2016
1.
10.2
133,067.0
2,000.0
51,943.4
13.7
40,129.4
61,600.0
750.0
8,761.4
186.5
32,500.0
Amounts reported are based on face value of securities under repo, reverse repo, LAF and MSF.
` in million
Minimum
Maximum
Daily average
outstanding
outstanding
outstanding
balance during the balance during the balance during the
Outstanding
balance at
March 31, 2015
1.
54.0
153,941.9
66,700.1
128,782.2
105,439.7
10,113.8
Amounts reported are based on face value of securities under repo, reverse repo, LAF and MSF.
11. Investments
The following table sets forth, for the periods indicated, the details of investments and the movement of provision
held towards depreciation on investments of the Bank.
` in million
Particulars
1. Value of Investments1
i) Gross value of investments
a) In India
b) Outside India
ii) Provision for depreciation
c) In India
d) Outside India
iii) Net value of investments
e) In India
f) Outside India
At
March 31, 2016
At
March 31, 2015
1,554,622.3
82,517.5
1,529,085.4
79,061.7
(32,015.5)
(1,006.3)
(26,293.6)
(561.3)
1,522,606.8
81,511.2
1,502,791.8
78,500.4
151
Schedules
At
March 31, 2016
At
March 31, 2015
25,931.8
10,852.9
(3,762.9)
33,021.8
23,775.0
5,631.7
(2,551.8)
26,854.9
1. Pursuant to RBI guidelines, investment in Rural Infrastructure and Development Fund and other related deposits of ` 280,661.8
million (March 31, 2015: ` 284,508.2 million) has been re-classified to line item Others under Schedule 11 - Other Assets.
2. Application money has been re-classified from Schedule 8 - Investments to Schedule 11 - Other Assets. Accordingly, the
corresponding provision has also been re-classified.
Pursuant to approval by the Board of Directors of the Bank on October 30, 2015, the Bank has sold equity shares
representing 9% shareholding in ICICI Lombard General Insurance Company Limited during FY2016 for a total
consideration of ` 15,502.5 million.
Pursuant to approval by the Board of Directors of the Bank on November 16, 2015 the Bank has sold equity
shares representing 6% shareholding in ICICI Prudential Life Insurance Company Limited during FY2016 for a total
consideration of ` 19,500.0 million.
12. Investment in securities, other than government and other approved securities (Non-SLR investments)
i) Issuer composition of investments in securities, other than government and other approved securities
The following table sets forth, the issuer composition of investments of the Bank in securities, other than
government and other approved securities at March 31, 2016.
` in million
Sr.
No.
1
2
3
4
5
6
7
Issuer
PSUs
FIs
Banks
Private corporates
Subsidiaries/ Joint ventures
Others4,5
Provision held towards depreciation
Total
Amount
Extent of
private
placement2
Extent of below
investment
grade securities
Extent of
unrated
securities2,3
Extent of
unlisted
securities3
(a)
(b)
(c)
(d)
15,452.7
64,389.9
110,250.9
84,928.7
110,282.0
122,449.4
(31,843.6)
475,910.0
9,633.9
53,486.5
84,289.7
77,782.6
121,693.2
N.A
346,885.9
4,517.9
19,610.9
N.A
24,128.8
4,171.6
N.A
4,171.6
5,737.6
2,471.6
2,652.4
N.A
10,861.6
1. Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.
2. Excludes investments, amounting to ` 2,652.4 million in preference shares of subsidiary ICICI Bank Canada.
3. 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 NBFCs), unlisted convertible debentures and securities acquired
by way of conversion of debt.
4. Excludes investments in non-Indian government securities by overseas branches amounting to ` 21,715.2 million.
5. Excludes investments in non-SLR Indian government securities amounting to ` 2,435.7 million.
152
Schedules
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, 2015.
` in million
Sr.
No.
Issuer
1
2
3
4
5
6
7
PSUs
FIs
Banks
Private corporates
Subsidiaries/ Joint ventures
Others5,6,7
Provision held towards depreciation
Total
Amount
16,011.7
37,028.6
121,737.0
97,754.7
117,751.2
142,751.0
(25,674.7)
507,359.5
141,016.6
N.A
373,167.7
Extent of
unrated
securities 3,4
Extent of
unlisted
securities4
(c)
4,054.6
N.A
4,054.6
(d)
3,032.8
6,861.9
N.A
9,894.7
(b)
7,836.4
16,888.7
N.A
24,725.1
1. Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.
2.
Includes ` 33,050.4 million of application money towards corporate bonds/debentures and pass through certificates.
3. Excludes investments, amounting to ` 4,396.9 million in preference shares of subsidiaries and ` 2,465.0 million in
subordinated bonds of subsidiary ICICI Bank Canada.
4. 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 NBFCs), unlisted convertible debentures and securities acquired
by way of conversion of debt.
5. Excludes investments in non-Indian government securities by overseas branches amounting to ` 17,824.0 million.
6. Excludes investments in non-SLR Indian government securities amounting to ` 90.8 million.
7. Pursuant to RBI guidelines, investment in Rural Infrastructure and Development Fund and other related deposits of
` 284,508.2 million has been re-classified to line item Others under Schedule 11 - Other Assets.
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
Revenue
Year ended
March 31, 2016
Year ended
March 31, 2015
11,444.2
8,075.2
(2,718.9)
16,800.5
10,404.2
4,414.0
7,633.5
(549.8)
11,497.7
8,262.2
Opening balance
Additions during the year
Reduction during the year
Closing balance
Total provision held
1. Non-performing application money outstanding at March 31, 2015 has been re-classified from Schedule 8 - Investments
to Schedule 11 - Other Assets.
13. Sales and transfers of securities to/from Held to Maturity (HTM) category
During the year ended March 31, 2016 the value of sales and transfers of securities to/from HTM category
(excluding one-time transfer of securities to/from HTM category with the approval of Board of Directors permitted
to be undertaken by banks at the beginning of the accounting year, sale to RBI under pre-announced Open Market
Operation auctions and repurchase of Government securities by Government of India) had exceeded 5% of the book
value of the investments held in HTM category at the beginning of the year. The market value of investments held
in the HTM category was ` 999,326.82 million at March 31, 2016 which includes investments in subsidiaries/joint
ventures carried at cost.
153
Schedules
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. At March 31, 2016, the Bank had no outstanding borrowings (March 31, 2015: Nil) and no
outstanding lending (March 31, 2015: Nil) in the form of CBLO. The amortised book value of securities given as
collateral by the Bank to CCIL for availing the CBLO facility was ` 68,296.0 million at March 31, 2016 (March 31, 2015:
` 84,853.6 million).
15. Derivatives
The Bank is a major 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 Control and Service Group
(TCSG) 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 Banks 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 Managing Director and CEO.
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 Asset Liability Management
Committee (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.
Hedge derivative transactions are accounted for pursuant to the principles of hedge accounting based on guidelines
issued by RBI. Derivatives for market making purpose are marked to market and the resulting gain/loss is recorded
in the profit and loss account. The premium on option contracts is accounted for as per Foreign Exchange Dealers
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.
154
Schedules
The following table sets forth, for the period indicated, the details of derivative positions.
` in million
Sr.
No.
1
3
4
Particulars
Derivatives (Notional principal amount)
a) For hedging
b) For trading
Marked to market positions3
a) Asset (+)
b) Liability (-)
Credit exposure4
Currency
derivative1
Interest rate
derivative2
13,895.2
946,749.3
565,237.3
2,348,522.6
23,695.3
1,027,190.7
463,792.9
2,537,928.1
35,782.6
(33,844.0)
86,084.6
16,697.9
(17,159.2)
62,874.1
43,892.8
(43,608.8)
99,796.9
17,658.3
(19,957.6)
65,281.4
96.9
1,380.5
16,621.7
1,076.2
218.1
1,027.8
14,423.4
694.3
228.0
93.7
16,960.1
12,732.7
345.4
172.3
15,651.1
13,067.2
1,730.8
962.4
1,708.6
88.4
1,080.8
714.7
832.8
73.9
1. Exchange traded and Over the Counter (OTC) options, cross currency interest rate swaps and currency futures are included in
currency derivatives.
2. 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 onbalance sheet items.
The following tables set forth, for the periods indicated, the details of forex contracts.
` in million
Sr.
No.
1
2
3
4
Particulars
Forex contracts (Notional principal amount)
Marked to market positions
a) Asset (+)
b) Liability (-)
Credit exposure1
Likely impact of one percentage change in interest rate
(100*PV01)2
3,048,537.0
519,192.1
2,380,384.1
518,340.9
16,659.3
(14,362.8)
102,000.4
3,563.5
(5,775.9)
11,278.1
22,585.2
(19,159.2)
84,003.9
3,660.1
(5,425.4)
13,116.0
28.2
88.2
23.5
189.1
1.
2.
The net overnight open position at March 31, 2016 was ` 1,272.1 million (March 31, 2015: ` 1,193.1 million).
155
Schedules
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, 2016 (March 31, 2015: Nil).
The Bank offers deposits to customers of its offshore branches with structured returns linked to interest, forex, credit
or equity benchmarks. The Bank covers these exposures in the inter-bank market. At March 31, 2016, the net open
notional position on this portfolio was Nil (March 31, 2015: Nil) with mark-to-market position of net gain of ` 0.1
million (March 31, 2015: net gain of ` 1.4 million).
The profit and loss impact on the above portfolio on account of mark-to-market and realised profit and loss during
the year ended March 31, 2016 was a net loss of ` 16.5 million (March 31, 2015: net loss of ` 22.0 million). Non-Rupee
denominated derivatives are marked to market by the Bank based on counter-party valuation quotes, or internal
models using inputs from market sources such as Bloomberg/Reuters, counter-parties and Fixed Income Money
Market and Derivative Association (FIMMDA). Rupee denominated credit derivatives are marked to market by the
Bank based on FIMMDA published CDS curve.
The following table sets forth, for the periods indicated, the details of exchange traded interest rate derivatives.
` in million
Particulars
At
March 31, 2016
At
March 31, 2015
i)
61,510.0
76,383.2
ii)
2,352.4
9,125.0
iii)
N.A.
N.A.
iv)
N.A.
N.A.
The following table sets forth, for the periods indicated, the details of exchange traded currency options.
` in million
Particulars
At
March 31, 2016
At
March 31, 2015
i)
ii)
iii)
369,688.2
2,938.5
148,171.1
4,645.4
N.A.
N.A.
iv)
N.A.
N.A.
156
Schedules
The following table sets forth, for the periods indicated, the details of exchange traded currency futures.
` in million
Particulars
At
March 31, 2016
At
March 31, 2015
i)
ii)
iii)
1,428,952.1
38,615.7
625,328.4
1,324.8
N.A.
N.A.
N.A.
N.A.
iv)
The Bank enters into FRA and IRS 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 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. The benchmark used in the FRA contracts of the Bank
is London Inter-Bank Offered Rate (LIBOR) of various currencies.
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 LIBOR of various currencies.
These contracts are subject to the risks of changes in market interest rates as well as the settlement risk with the
counterparties.
The following table sets forth, for the periods indicated, the details of the forward rate agreements/interest
rate swaps.
` in million
Particulars
i)
ii)
iii)
iv)
v)
Losses which would be incurred if all counter parties failed to fulfil their
obligations under the agreement1
At
March 31, 2016
At
March 31, 2015
2,885,362.8
2,936,228.7
21,423.6
1,875.8
17,371.6
22,018.1
1,610.7
15,174.9
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 swap contracts from a particular counter party.
3. Fair value represents mark-to-market including accrued interest.
157
Schedules
The following tables set forth, for the periods indicated, the nature and terms of FRA and IRS.
Hedging
` in million
Benchmark
Type
AUD LIBOR
CHF LIBOR
JPY LIBOR
SGD SOR
USD LIBOR
Total
3
2
1
6
111
123
No. of
deals
7,130.3
6,422.8
2,602.4
12,960.7
434,676.8
463,792.9
3
2
1
7
90
103
Trading
` in million
Benchmark
Type
CAD CDOR
CAD CDOR
CHF LIBOR
CHF LIBOR
CHF LIBOR
EURIBOR
EURIBOR
EURIBOR
GBP LIBOR
GBP LIBOR
INBMK
INBMK
JPY LIBOR
JPY LIBOR
JPY LIBOR
MIBOR
MIBOR
MIBOR
MIFOR
MIFOR
SGD SOR
SGD SOR
USD LIBOR
USD LIBOR
USD LIBOR
USD LIBOR
v/s EURIBOR
Others
Total
158
No. of
deals
102.8
3,113.8
37,407.0
37,155.3
1,738.3
3,725.0
5,371.4
14,500.0
32,649.8
5,935.6
3,655.0
1,771.0
301,141.8
297,605.1
249,585
235,635
2,950.8
542,236.5
473,302.2
55,704.0
1
1
19
14
3
9
7
27
53
13
5
2
590
594
498
512
2
699
430
58
12,872.4
13,609.4
2,890.2
706.5
642.3
7,249.0
6,277.3
670.7
8,894.9
6,601.8
18,000.0
46,379.6
8,470.7
4,439.3
2,264.8
406,038.1
398,742.0
2,000.0
261,565.0
243,425.0
21.8
488,955.8
481,636.8
26,810.1
5
8
1
2
1
19
12
1
11
9
36
74
16
8
4
625
605
1
553
526
3
684
447
43
2,499.8
12,340.3
2,320,125.5
2
199
3,738
3,144.2
20,128.0
2,472,435.8
2
118
3,814
Schedules
The following table sets forth, for the periods indicated, the details of movement of gross non-performing assets
(NPAs), net NPAs and provisions.
` in million
Particulars
i)
ii)
iii)
iv)
At
March 31, 2016
At
March 31, 2015
2.98%
1.61%
a) Opening balance1
b) Additions: Fresh NPAs during the year
Sub-total (1)
c) Reductions during the year
Upgradations
Recoveries (excluding recoveries made from upgraded accounts)
Technical/prudential write-offs
Write-offs other than technical/prudential write-offs
Sub-total (2)
d) Closing balance1 (1-2)
150,946.9
167,108.5
318,055.4
105,058.4
79,674.1
184,732.5
(11,239.8)
(15,049.7)
(20,275.8)
(9,277.6)
(55,842.9)
262,212.5
(5,501.6)
(11,322.6)
(8,593.5)
(8,367.9)
(33,785.6)
150,946.9
a)
b)
c)
d)
62,555.3
106,209.9
(39,134.4)
129,630.8
32,979.6
50,210.1
(20,634.4)
62,555.3
88,391.6
80,732.0
169,123.6
72,078.8
38,134.8
110,213.6
(2,908.9)
(5,677.4)
(27,955.6)
(36,541.9)
132,581.7
(1,342.7)
(5,048.6)
(15,430.7)
(21,822.0)
88,391.6
Opening balance1
Additions during the year
Reductions during the year
Closing balance1
1.
Net of write-off.
RBI had asked banks to review certain loan accounts and their classification over the two quarters ending December
31, 2015 and March 31, 2016. The bank has completed this exercise over the timeframe stipulated by RBI.
The following table sets forth, for the periods indicated, the details of movement in technical/prudential write-offs.
` in million
Particulars
Opening balance
Add: Technical/prudential write-offs during the period/year
Sub-total (1)
Less: Recoveries made from previously technical/prudential written-off accounts
during the period/year
Less: Sacrifice made from previously technical/prudential written-off accounts
during the period/year
Sub-total (2)
Closing balance (1-2)
At
March 31, 2016
At
March 31, 2015
52,476.0
20,275.8
72,751.8
46,628.1
8,593.5
55,221.6
(1,603.0)
(1,525.4)
(575.0)
(2,178.0)
70,573.8
(1,220.2)
(2,745.6)
52,476.0
159
Schedules
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.
Standard assets provision amounting to ` 2,970.1 million was made during the year ended March 31, 2016 (March
31, 2015: ` 3,847.9 million) as per applicable RBI guidelines.
The provision on standard assets (including incremental provision on unhedged foreign currency exposure (UFCE))
held by the Bank at March 31, 2016 was ` 26,583.4 million (March 31, 2015: ` 23,336.0 million).
The Bank assesses the unhedged foreign currency exposures of the borrowers through its credit appraisal and internal
ratings process. The Bank also undertakes reviews of such exposures through thematic reviews by Risk Committee
based on market developments evaluating the impact of exchange rate fluctuations on the Banks portfolio, portfolio
specific reviews by the RMG and scenario-based stress testing approach as detailed in the Internal Capital Adequacy
Assessment Process (ICAAP). In addition, a periodic review of the forex exposures of the borrowers having significant
external commercial borrowings is conducted by RMG.
RBI, through its circular dated January 15, 2014 had advised banks to create incremental provision on advances to
borrowers with UFCE. Incremental provision of ` 100.0 million was made against borrowers with UFCE during the
year (March 31, 2015: ` 1,750.0 million).
The Bank held incremental capital of ` 5,580.0 million at March 31, 2016 on UFCE (March 31, 2015: ` 4,050.0 million).
The provision coverage ratio of the Bank at March 31, 2016 computed as per the extant RBI guidelines is 50.6%
(March 31, 2015: 58.6%).
21. Securitisation
A. T
he Bank sells loans through securitisation and direct assignment. The following tables set forth, for the periods
indicated, the information on securitisation and direct assignment activity of the Bank as an originator till May 7, 2012.
` in million, except number of loans securitised
Particulars
Total number of loan assets securitised
Total book value of loan assets securitised
Sale consideration received for the securitised assets
Net gain/(loss) on account of securitisation1
Year ended
March 31, 2016
Year ended
March 31, 2015
(39.5)
148.0
1. Includes gain/(loss) on deal closures, gain amortised during the year and expenses relating to utilisation of credit
enhancement.
` in million
Particulars
Outstanding credit enhancement (funded)
Outstanding liquidity facility
Net outstanding servicing asset/(liability)
Outstanding subordinate contributions
At
March 31, 2016
At
March 31, 2015
3,992.2
*
(25.5)
1,493.6
4,531.4
0.3
(32.9)
1,513.4
* Insignificant amount.
The outstanding credit enhancement in the form of guarantees amounted to Nil at March 31, 2016 (March 31,
2015: Nil) and outstanding liquidity facility in the form of guarantees amounted to ` 265.6 million at March 31,
2016 (March 31, 2015: ` 265.5 million).
160
Schedules
Outstanding credit enhancement in the form of guarantees for third party originated securitisation transactions
amounted to ` 4,089.3 million at March 31, 2016 (March 31, 2015: ` 5,530.3 million) and outstanding liquidity
facility for third party originated securitisation transactions amounted to Nil at March 31, 2016 (March 31, 2015:
Nil).
The following table sets forth, for the periods indicated, the details of provision for securitisation and direct
assignment transactions.
` in million
Particulars
Opening balance
Additions during the year
Deductions during the year
Closing balance
At
March 31, 2016
At
March 31, 2015
617.5
141.5
(13.7)
745.3
832.1
(214.6)
617.5
B. T
he information on securitisation and direct assignment activity of the Bank as an originator as per RBI guidelines
Revisions to the Guidelines on Securitisation Transactions dated May 7, 2012 is given below.
a. T
he Bank, as an originator, had not sold any loan through securitisation during the year ended March 31,
2016 (March 31, 2015: Nil).
b. T
he following table sets forth, for the periods indicated, the information on the loans sold through direct
assignment.
` in million
At
March 31, 2016
At
March 31, 2015
47.8
59.6
151.0
74.4
152.6
230.6
Sr.
no.
Particulars
1
2
3
a)
First loss
Others
b) On-balance sheet exposures
First loss
Others
Amount of exposure to securtisation transactions other than MRR
a) Off-balance sheet exposures
i) Exposure to own securtisation
First loss
Others
ii) Exposure to third party securtisation
First loss
Others
b) On-balance sheet exposures
i) Exposure to own securtisation
First loss
Others
ii) Exposure to third party securtisation
First loss
Others
161
Schedules
verseas branches of the Bank, as originators, have sold four loans through direct assignment amounting
O
to ` 6,536.9 million during the year ended March 31, 2016 (March 31, 2015: two loans amounting to
` 1,698.1 million).
22. Financial assets transferred during the year to securitisation company (SC)/reconstruction company (RC)
The Bank has transferred certain assets to Asset Reconstruction Companies (ARCs) in terms of the guidelines issued
by RBI circular no. DBOD.BP.BC.No.98/21.04.132/2013-14 dated February 26, 2014. For the purpose of the valuation
of the underlying security receipts issued by the underlying trusts managed by ARCs, the security receipts are valued
at their respective net asset values as advised by the ARCs.
The following table sets forth, for the periods indicated, the details of the assets transferred.
` in million, except number of accounts
Particulars
Number of accounts1
Aggregate value (net of provisions) of accounts sold to SC/RC
Aggregate consideration
Additional consideration realised in respect of accounts transferred in earlier years
Aggregate gain/(loss) over net book value
Year ended
March 31, 2016
Year ended
March 31, 2015
7
6,721.0
7,305.8
584.8
14
3,285.8
2,480.0
(805.8)
1.
The following table sets forth, for the periods indicated, the details of the net book value of investments in security
receipts.
` in million
Particulars
Net book value of investments in security receipts which are:
Backed by NPAs sold by the Bank as underlying1
Backed by NPAs sold by other banks/financial institutions (FIs)/non-banking
financial companies (NBFCs) as underlying
Total
At
March 31, 2016
At
March 31, 2015
4,066.1
6,069.6
241.6
4,307.7
681.4
6,751.0
1. During the year ended March 31, 2016, asset reconstruction companies have fully redeemed one security receipt. The Bank
incurred net loss of ` 470.2 million (March 31, 2015: Net loss of ` 81.3 million).
The Bank has not purchased any non-performing assets in terms of the guidelines issued by RBI circular no. DBOD.
BP.BC.No.98/21.04.132/2013-14 dated February 26, 2014 during the year ended March 31, 2016. The Bank has sold
certain non-performing assets in terms of the above RBI guidelines.
The following table sets forth, for the periods indicated, details of non-performing assets sold, excluding those sold
to SC/RC.
` in million, except number of accounts
Particulars
No. of accounts
Aggregate value (net of provisions) of accounts sold, excluding those sold to SC/RC
Aggregate consideration
Aggregate gain/(loss) over net book value
Year ended
March 31, 2016
Year ended
March 31, 2015
3
12.8
174.4
161.6
Additionally, during the year ended March 31, 2016, the Bank sold a non-performing loan to a corporate for a
consideration of ` 290.0 million on which the Bank recognised a gain of ` 290.0 million.
162
Type of Restructuring
No. of borrowers
Amount outstanding
Provision thereon
Write-offs/recovery/sale of restructured accounts during the
year ended March 31, 2016
No. of borrowers
Amount outstanding
Provision thereon
Restructured accounts at March 31, 2016
No. of borrowers
Amount outstanding
Provision thereon
32
56,661.3
4,678.0
(1)
(43.2)
(1.1)
(18)
(27,368.0)
(2,791.8)
3,336.0
(174.1)
51
80,736.5
7,645.0
(a)
SubStandard
(b)
26
61,917.0
35,524.8
(7)
(6,587.0)
(4,321.0)
12
25,961.8
14,893.0
4,703.7
8,173.8
21
37,838.5
16,770.0
(c)
Doubtful
7
2,035.8
2,035.8
(1)
(416.4)
(416.4)
6
2,016.5
2,016.5
2
435.6
435.6
(d)
Loss
65
120,614.1
42,238.6
(9)
(7,046.6)
(4,738.5)
610.3
14,117.7
8,039.7
7,999.7
74
119,010.6
24,850.6
(e)
Total
1
1.6
1.6
1
0.01
(a)
Standard
SubStandard
(b)
(c)
Doubtful
(1)
(34.0)
(34.0)
1
34.0
34.0
(d)
Loss
1
1.6
(1)
(34.0)
(34.0)
1.6
2
34.0
34.0
(e)
Total
1. Insignificant amount.
2. Increase/(decrease) in borrower level outstanding of restructured accounts is due to utilisation of cash credit facility, exchange rate fluctuation, accrued interest, fresh disbursement,
non-fund based devolvement, conversion of loans into equity (including application money pending allotment) as part of restructuring scheme, etc.
8.
7.
6.
5.
4.
3.
2.
1.
Standard
The following tables set forth, for the year ended March 31, 2016 details of loan assets subjected to restructuring.
Schedules
forming part of the Accounts (Contd.)
163
164
(75)
(2,697.5)
(14.9)
(764)
(25,634.2)
(614.6)
(1)
(78.1)
3,064.5
510.5
18
18.4
0.3
9
23,070.5
1,201.3
1,204
38,723.9
1,642.1
(a)
Standard
739
611.4
102.3
(1)
(0.2)
725
(3,039.4)
(823.0)
0.1
(5)
(1.6)
(0.3)
20
3,652.5
925.5
SubStandard
(b)
49
33,331.9
14,942.1
(7)
(1,517.3)
(1,514.1)
26
21,406.7
6,990.4
(40.6)
1,677.7
(4)
(6.9)
(6.1)
34
13,490.0
7,794.2
(c)
Others
Doubtful
120
6,644.0
6,644.0
(22)
(1,614.8)
(1,614.8)
13
6,004.3
6,004.3
(33.3)
(33.3)
(9)
(11.1)
(11.1)
138
2,298.9
2,298.9
(d)
Loss
1,299
77,054.8
24,413.1
(105)
(5,829.8)
(3,143.8)
(1,262.6)
11,557.1
(1)
(78.1)
2,990.7
2,154.9
(1.2)
(17.2)
9
23,070.5
1,201.3
1,396
58,165.3
12,660.7
(e)
Total
424
93,130.4
7,402.7
(76)
(2,740.7)
(16.0)
(782)
(53,002.2)
(3,406.4)
(1)
(78.1)
6,402.1
336.4
18
18.4
0.3
9
23,070.5
1,201.3
1,256
119,460.4
9,287.1
(a)
Standard
739
611.4
102.3
(1)
(0.2)
725
(3,039.4)
(823.0)
0.1
(5)
(1.6)
(0.3)
20
3,652.5
925.5
SubStandard
(b)
75
95,248.9.1
50,466.9
(14)
(8,104.3)
(5,826.1)
38
47,368.5
21,883.4
4,663.1
9,851.5
(4)
(6.9)
(6.1)
55
51,328.5
24,564.2
(c)
Total
Doubtful
127
8,679.8
8,679.8
(24)
(2,065.2)
(2,065.2)
14
8,020.8
8,020.8
(33.3)
(33.3)
(9)
(11.1)
(11.1)
141
2,768.5
2,768.5
(d)
Loss
1,365
197,670.5
66,651.7
(115)
(12,910.4)
(7,907.3)
(652.3)
25,674.8
(1)
(78.1)
11,030.2
10,154.6
(1.2)
(17.2)
9
23,070.5
1,201.3
1,472
177,209.9
37,545.3
(e)
Total
1. Increase/(decrease) in borrower level outstanding of restructured accounts is due to utilisation of cash credit facility, exchange rate fluctuation, accrued interest, fresh disbursement,
non-fund based devolvement, conversion of loans into equity (including application pending allotment) as part of restructuring scheme, etc.
2. Others mechanism also include cases restructured under Joint Lender Forum (JLF) mechanism.
8.
7.
6.
5.
4.
3.
2.
1.
Type of Restructuring
Schedules
(2)
(2,941.2)
(67.9)
(12)
(36,160.6)
(4,066.3)
(2)
(2,750.2)
(63.9)
16,160.5
1,031.8
19
17,809.1
1,552.5
48
88,618.9
9,258.8
(a)
Standard
N.A.
N.A.
N.A.
SubStandard
(b)
21
37,838.5
16,770.0
(4)
(2,787.1)
(1,479.0)
11
35,175.3
13,583.7
N.A.
N.A.
N.A.
12.4
649.0
1
213.7
213.7
13
5,224.2
3,802.6
(c)
Doubtful
2
435.6
435.6
1
416.4
416.4
N.A.
N.A.
N.A.
(1.9)
(1.9)
1
21.1
21.1
(d)
Loss
74
119,010.6
24,850.6
(6)
(5,728.3)
(1,546.9)
(568.9)
9,933.8
(2)
(2,750.2)
(63.9)
16,171.0
1,678.9
20
18,022.8
1,766.2
1
0.03
(4.0)
(0.2)
1
4.0
0.2
(a)
(e)
62
93,864.2
13,082.5
Standard
Total
N.A.
N.A.
N.A.
SubStandard
(b)
(1)
(34.0)
(34.0)
N.A.
N.A.
N.A.
1
34.0
34.0
(c)
Doubtful
1
34.0
34.0
1
34.0
34.0
N.A.
N.A.
N.A.
(d)
Loss
2
34.0
34.0
(4.0)
(0.2)
2
38.0
34.2
(e)
Total
1. Three borrowers with amount outstanding of ` 7,673.3 million and provision of ` 446.1 million at March 31, 2014 was reported in others mechanism during the year ended March 31, 2014.
Subsequently these account have been re-classified under CDR mechanism.
2. Increase/(decrease) in borrower level outstanding of restructured accounts is due to utilisation of cash credit facility, exchange rate fluctuation, accrued interest, fresh disbursement,
non-fund based devolvement, conversion of loans into equity (including application money pending allotment) as part of restructuring scheme, etc.
3. Insignificant amount.
8.
7.
6.
5.
4.
3.
2.
1.
Type of Restructuring
The following tables set forth, for the year ended March 31, 2015 details of loan assets subjected to restructuring.
Schedules
165
166
(24)
(11.5)
(1.6)
(34)
(9,131.4)
(1,052.6)
(17)
(10.2)
2,205.0
(62.1)
17
246.8
455
17,523.4
1,072.2
807
27,901.8
1,686.2
(a)
Standard
20
3,652.5
925.5
(3)
(1.8)
(0.2)
9
2,604.1
733.0
N.A.
N.A.
N.A.
6
762.6
114.4
8
287.6
78.3
SubStandard
(b)
34
13,490.0
7,794.2
(34)
(2,790.9)
(1,306.4)
(103)
4,780.4
790.4
N.A.
N.A.
N.A.
23.1
1,443.5
(17)
(257.2)
(168.8)
188
11,734.6
7,035.5
(c)
Doubtful
Others
138
2,298.9
2,298.9
(3)
(0.8)
(0.8)
128
1,795.6
1,795.6
N.A.
N.A.
N.A.
(99.5)
152.8
13
603.6
351.3
(d)
Loss
1,396
58,165.3
12,660.7
(64)
(2,805.0)
(1,309.0)
48.7
2,266.4
(17)
(10.2)
2,128.6
1,534.2
(10.4)
(168.8)
461
18,286.0
1,186.6
1,256
119,460.4
9,287.1
(26)
(2,952.7)
(69.5)
(46)
(45,292.0)
(5,118.9)
(19)
(2,760.4)
(63.9)
18,361.5
969.5
17
246.8
474
35,332.5
2,624.7
856
116,524.7
10,945.2
(a)
(e)
1,016
40,527.6
9,151.3
Standard
Total
20
3,652.5
925.5
(3)
(1.8)
(0.2)
9
2,604.1
733.0
N.A.
N.A.
N.A.
6
762.6
114.4
8
287.6
78.3
SubStandard
(b)
55
51,328.5
24,564.2
(38)
(5,578.0)
(2,785.4)
(93)
39,921.7
14,340.1
N.A.
N.A.
N.A.
35.5
2,092.5
(17)
(257.2)
(168.8)
1
213.7
213.7
202
16,992.8
10,872.1
(c)
Doubtful
Total
141
2,768.5
2,768.5
(3)
(0.8)
(0.8)
130
2,246.0
2,246.0
N.A.
N.A.
N.A.
(101.4)
150.9
14
624.7
372.4
(d)
Loss
1,472
177,209.9
37,545.3
(70)
(8,533.3)
(2,855.9)
(520.2)
12,200.2
(19)
(2,760.4)
(63.9)
18,295.6
3,212.9
(10.4)
(168.8)
481
36,308.8
2,952.8
1,080
134,429.8
22,268.0
(e)
Total
1. Three borrowers with amount outstanding of ` 7,673.3 million and provision of ` 446.1 million at March 31, 2014 was reported in others mechanism during the year ended March 31, 2014.
Subsequently these account have been re-classified under CDR mechanism.
2. Increase/(decrease) in borrower level outstanding of restructured accounts is due to utilisation of cash credit facility, exchange rate fluctuation, accrued interest, fresh disbursement,
non-fund based devolvement, conversion of loans into equity (including application pending allotment) as part of restructuring scheme, etc.
3. Others mechanism also include cases restructured under Joint Lender Forum (JLF) mechanism.
8.
7.
6.
5.
4.
3.
2.
1.
Type of Restructuring
Schedules
Schedules
In 2008, RBI issued guidelines on debt restructuring, which also covered the treatment of funded interest in cases
of debt restructuring, that is, instances where interest for a certain period was funded by a Funded Interest Term
Loan (FITL) which was then repaid based on a contracted maturity schedule. In line with these guidelines, the Bank
was providing fully for any interest income which was funded through a FITL for cases restructured subsequent to
the issuance of the guideline. However, during the year ended March 31, 2015, RBI required similar treatment of
outstanding FITL pertaining to cases restructured prior to the 2008 guidelines which were not yet repaid. In view of
the above, and since this item relates to prior years, the Bank had with the approval of the RBI debited its reserves by
` 9,291.6 million to fully provide outstanding FITLs pertaining to restructurings prior to the issuance of the guideline
in the quarter ended March 31, 2015 as against over three quarters permitted by RBI.
The Bank holds floating provision of ` 1.9 million at March 31, 2016 (March 31, 2015:` 1.9 million) taken over from
erstwhile Bank of Rajasthan on amalgamation.
At
March 31, 2016
At
March 31, 2015
309,666.1
7.35%
232,603.9
6.43%
` in million
Concentration of advances
At
March 31, 2016
At
March 31, 2015
1,316,111.4
14.61%
1,337,961.7
16.50%
1. Represents credit exposure (funded and non-funded) including derivatives exposures as per RBI guidelines on exposure
norms.
` in million
Concentration of exposures1
Total exposure to 20 largest borrowers/customers (including banks)
Exposures to 20 largest borrowers/customers as a percentage of total
exposure of the Bank
1.
At
March 31, 2016
At
March 31, 2015
1,348,617.3
1,354,445.8
14.30%
15.87%
Represents credit and investment exposures as per RBI guidelines on exposure norms.
` in million
Concentration of NPAs1
Total exposure1 to top four NPA accounts
1.
At
March 31, 2016
At
March 31, 2015
108,418.9
62,016.3
167
Schedules
A.
Priority sector
1.
2.
3.
4.
B.
1.
2.
3.
4.
1.
2.
Non-priority sector
Outstanding
advances
Gross NPAs
% of gross NPAs to
total advances in
that sector
292,270.1
9,202.6
3.15%
149,124.4
136,508.0
76,455.8
17,211.9
359,514.1
241,865.6
106,321.8
937,416.6
4,900.5
2,662.8
1,196.3
447.6
4,271.8
2,311.0
1,739.4
21,037.7
3.29%
1.95%
1.56%
2.60%
1.19%
0.96%
1.64%
2.24%
1,639,731.6
541,521.9
354,484.0
872,035.5
268,848.6
137,418.0
1,052,641.9
745,402.6
3,564,409.0
4,501,825.6
168,177.6
41,917.4
66,141.6
62,393.3
5,568.0
6,018.5
10,603.8
4,157.4
241,174.7
262,212.4
10.26%
7.74%
18.66%
7.15%
2.07%
4.38%
1.01%
0.56%
6.77%
5.82%
Sr.
Sector
no.
A.
Priority sector
1.
2.
3.
4.
168
Outstanding
advances
Gross NPAs
% of gross NPAs to
total advances in
that sector
237,737.6
7,051.4
2.97%
114,316.8
118,499.0
61,484.7
14,487.1
301,750.1
217,485.4
78,868.5
772,303.5
3,660.3
1,963.1
1,273.5
487.7
3,818.1
2,571.4
967.2
16,492.9
3.20%
1.66%
2.07%
3.37%
1.27%
1.18%
1.23%
2.14%
Schedules
B.
Non-priority sector
1.
2.
3.
4.
1.
2.
Outstanding
advances
Gross NPAs
% of gross NPAs to
total advances in
that sector
1,532,182.6
492,067.9
311,448.4
851,479.8
264,316.4
128,156.7
833,654.3
575,848.8
73,115.3
17,174.3
11,462.2
50,175.6
4,914.1
4,299.1
11,163.1
3,488.5
4.77%
3.49%
3.68%
5.89%
1.86%
3.35%
1.34%
0.61%
3,217,316.7
3,989,620.3
134,454.0
150,946.9
4.18%
3.78%
Year ended
March 31, 2016
Year ended
March 31, 2015
1,188,387.1
38,937.5
60,200.9
1,203,814.7
8,516.8
54,678.3
1.
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)
(a) T
he following table sets forth, the names of SPVs/trusts sponsored by the Bank/subsidiaries which are
consolidated.
Sr. no. Name of the SPV sponsored1,2
Domestic3
ICICI Strategic Investments Fund
India Advantage Fund-III
India Advantage Fund-IV
Overseas
None
169
Schedules
(b) T
he following table sets forth, the names of SPVs/trusts which are not sponsored by the Bank/subsidiaries
and are consolidated.
Sr. no. Name of the SPV
Domestic
None
Overseas
None
The following table sets forth, for the periods indicated, the details of intra-group exposure.
` in million
Particulars
1.
2.
3.
4.
At
March 31, 2016
At
March 31, 2015
104,789.7
104,789.7
102,495.0
102,495.0
1.11%
1.20%
Nil
Nil
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
Capital Market Sector
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
II. 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
III. 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
IV. 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
V. Secured and unsecured advances to stockbrokers and guarantees issued on
behalf of stock brokers and market makers
VI. Loans sanctioned to corporate against the security of shares/bonds/debentures
or other securities or on clean basis for meeting promoters contribution to the
equity of new companies in anticipation of raising resources
VII. Bridge loans to companies against expected equity flows/issues
VIII. Underwriting commitments taken up by the Bank in respect of primary issue
of shares or convertible bonds or convertible debentures or units of equity
oriented mutual funds
IX. Financing to stockbrokers for margin trading
X. All exposures to venture capital funds (both registered and unregistered)
XI. Others
Total exposure to capital market1
At
March 31, 2016
At
March 31, 2015
18,262.1
22,597.0
1,746.0
1,867.7
85,157.5
99,828.3
47,282.3
37,754.5
10,350.1
8,256.5
171,054.5
12,400.8
8,332.4
182,780.7
I.
1. At March 31, 2016, excludes investments in equity shares under Strategic Debt Restructuring (SDR) scheme amounting to
` 4,683.4 million.
170
Schedules
The following table sets forth, for the periods indicated, the summary of exposure to real estate sector.
` in million
Real estate sector
I.
II.
Direct exposure
i)
Residential mortgages
of which: individual housing loans eligible for priority sector advances
ii) Commercial real estate1
iii) Investments in Mortgage Backed Securities (MBS) and other securitised
exposure
a.
Residential
b.
Commercial real estate
Indirect exposure
i)
Fund based and non-fund based exposures on National Housing Bank
(NHB) and Housing Finance Companies (HFCs)
Total exposure to real estate sector2
At
March 31, 2016
At
March 31, 2015
1,538,771.3
1,155,305.7
182,852.8
351,808.5
1,340,716.4
945,862.1
172,465.4
356,451.4
31,657.1
27,850.9
3,806.2
121,131.7
38,402.9
36,624.4
1,778.5
85,681.9
121,137.7
1,659,903.0
85,681.9
1,426,398.3
1. Commercial real estate exposure include 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.
2. Excludes non-banking assets acquired in satisfaction of claims.
At March 31, 2016, the outstanding receivables acquired by the Bank under factoring business were ` 4,290.6 million
(March 31, 2015: ` 3,737.6).
As per the extant RBI guidelines, the country exposure of the Bank is categorised into various risk categories listed in
the following table. The funded country exposure (net) of the Bank as a percentage of total funded assets for United
States of America was 2.51% (March 31, 2015: 2.53%), Singapore was 1.50% (March 31, 2015: 1.31%) and United
Kingdom was 1.50% (March 31, 2015: 0.52%). As the net funded exposure to United States of America, Singapore
and United Kingdom exceeds 1.0% of total funded assets, the Bank held a provision of ` 530.0 million on country
exposure at March 31, 2016 (March 31, 2015: ` 345.0 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
Insignificant
Low
Moderately Low
Moderate
Moderately High
High
Very High
Total
Exposure (net) at
March 31, 2016
902,987.8
204,850.4
20,254.5
15,425.1
1,143,517.8
Provision held at
March 31, 2016
530.0
530.0
Exposure (net) at
March 31, 2015
784,254.1
189,069.3
27,593.9
10,823.3
1,011,740.6
Provision held at
March 31, 2015
345.0
345.0
171
Schedules
During the year ended March 31, 2016, the Bank complied with the RBI guidelines on single borrower and borrower
group limit. As per the exposure limits permitted under the extant RBI regulation, the Bank with the approval of the
Board of Directors can enhance exposure to a single borrower or borrower group by a further 5.0% of capital funds.
In accordance with the guidelines issued by RBI, with the prior approval of the Board of Directors, the Bank had
taken additional exposure to Reliance Industries Limited during the year. At March 31, 2016, the exposure to Reliance
Industries Limited as a percentage of capital funds was 14.6% and was within the prudential exposure limit.
During the year ended March 31, 2015, the Bank complied with the RBI guidelines on single borrower and borrower
group limit.
The Bank has not made advances against intangible collaterals of the borrowers, which are classified as unsecured
in its financial statements at March 31, 2016 (March 31, 2015: Nil) and the estimated value of the intangible collaterals
was Nil at March 31, 2016 (March 31, 2015: Nil).
The Bank revalued its premises (land and buildings) at March 31, 2016. The revalued amount of the premises was
` 58,404.6 million as compared to the historical cost less accumulated depreciation of ` 30,229.9 million on the
date of revaluation. The valuation was carried out by external valuers using methods applicable to the valuation
of premises such as direct comparison method and income generation method.
ii. Software
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 cost at March 31 of preceding year
Additions during the year
Deductions during the year
Depreciation to date
Net block
At
March 31, 2016
At
March 31, 2015
11,260.7
1,877.7
(1.8)
(10,074.9)
3,061.7
9,433.7
1,827.9
(0.9)
(8,554.8)
2,705.9
The following table describes the nature of contingent liabilities of the Bank.
Sr. no. Contingent liability
Brief Description
1.
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 Banks 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.
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, which are derivative instruments. With respect to the
transactions entered into with its customers, the Bank generally enters into off-setting
transactions in the inter-bank market. This results in generation of a higher number of
outstanding transactions, and hence a large value of gross notional principal of the portfolio,
while the net market risk is lower.
172
Schedules
Brief Description
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.
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 Other items for which the Bank is contingently liable primarily include the amount of
Bank is contingently liable government securities bought/sold and remaining to be settled on the date of financial
statements. This also includes the value of sell down options and other facilities pertaining
to securitisation, the notional principal amounts of credit derivatives, amount applied in
public offers under Application Supported by Blocked Amounts (ASBA), bill re-discounting,
amount transferred to the RBI under the Depositor Education and Awareness Fund (DEAF),
exposure under partial credit enhancement, commitment towards contribution to venture
fund and the amount that the Bank is obligated to pay under capital contracts. Capital
contracts are job orders of a capital nature which have been committed.
The following table sets forth, for the periods indicated, the break-up of income derived from insurance business.
` in million
Sr.
Nature of income
No.
1.
2.
3.
Year ended
March 31, 2016
Year ended
March 31, 2016
7,667.7
735.1
1,794.5
6,325.7
678.2
2,426.6
The following tables set forth, for the periods indicated, movement of the present value of the defined benefit
obligation, fair value of plan assets and other details for pension benefits.
` in million
Particulars
Opening obligations
Service cost
Interest cost
Actuarial (gain)/loss
Liabilities extinguished on settlement
Benefits paid
Obligations at the end of year
Opening plan assets, at fair value
Expected return on plan assets
Actuarial gain/(loss)
Assets distributed on settlement
Year ended
March 31, 2015
Year ended
March 31, 2014
12,999.9
251.0
1,034.7
1,594.7
(1,554.0)
(134.7)
14,191.6
10,103.4
902.9
(4.1)
(1,726.7)
10,209.9
217.8
943.5
3,174.7
(1,381.1)
(164.9)
12,999.9
9,018.8
743.3
104.7
(1,534.6)
173
Schedules
Year ended
March 31, 2015
Year ended
March 31, 2014
4,050.8
(134.7)
13,191.6
13,191.6
14,191.6
(1,000.0)
1,936.1
(164.9)
10,103.4
10,103.4
12,999.9
(2,896.5)
251.0
1,034.7
(902.9)
1,598.8
172.7
2,154.3
898.8
3,000.0
217.8
943.5
(743.3)
3,070.0
153.5
3,641.5
848.0
3,000.0
1.04%
48.64%
43.23%
2.48%
4.61%
84.51%
7.12%
8.12%
0.25%
7.95%
8.00%
1.50%
7.00%
8.00%
1.50%
7.00%
8.00%
1. Included in line item payments to and provision for employees of Schedule-16 Operating expenses.
2. During the year ended March 31, 2015, majority of the funds were invested in Government of India securities and corporate
bonds.
Estimated rate of return on plan assets is based on the expected average long-term rate of return on investments of
the Fund during the estimated term of the obligations.
Experience adjustment
Particulars
Plan assets
Defined benefit obligations
Amount not recognised as an asset
(limit in para 59(b) of AS-15 on employee benefits)
Surplus/(deficit)
Experience adjustment on plan assets
Experience adjustment on plan liabilities
174
Year ended
March 31,
2016
13,191.6
14,191.6
(1,000.0)
(4.1)
1,503.4
Year ended
March 31,
2015
Year ended
March 31,
2014
Year ended
March 31,
2013
` in million
Year ended
March 31,
2012
10,103.4
12,999.9
9,018.8
10,209.9
9,526.8
10,392.5
9,379.5
9,602.7
(2,896.5)
104.7
1,271.2
(1,191.1)
(29.1)
2,549.6
(865.7)
102.3
1,525.2
(223.2)
51.7
2,692.3
Schedules
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
Opening obligations
Add: Adjustment for exchange fluctuation on opening obligations
Adjusted opening obligations
Service cost
Interest cost
Actuarial (gain)/loss
Past service cost
Liability transferred from/to other companies
Benefits paid
Obligations at the end of the year
Opening plan assets, at fair value
Expected return on plan assets
Actuarial gain/(loss)
Contributions
Asset transferred from/to other companies
Benefits paid
Closing plan assets, at fair value
Fair value of plan assets at the end of the year
Present value of the defined benefit obligations at the end of the year
Amount not recognised as an asset (limit in Para 59(b) of AS-15 on employee
benefits)
Asset/(liability)
Cost for the year1
Service cost
Interest cost
Expected return on plan assets
Actuarial (gain)/loss
Past service cost
Exchange fluctuation loss/(gain)
Effect of the limit in para 59(b) of AS15 on employee benefits
Net cost
Actual return on plan assets
Expected employers contribution next year
Investment details of plan assets
Insurer managed funds
Government of India securities
Corporate bonds
Special deposit schemes
Equity
Others
Assumptions
Discount rate
Salary escalation rate
Estimated rate of return on plan assets
1.
Year ended
March 31, 2016
Year ended
March 31, 2015
6,754.6
4.4
6,759.0
626.7
538.7
128.0
(5.9)
(659.8)
7,386.8
6,570.7
502.6
(345.7)
871.1
(5.9)
(659.8)
6,933.0
6,933.0
7,386.7
5,818.5
3.1
5,821.6
529.8
529.9
514.3
(7.3)
(633.7)
6,754.6
5,729.9
443.5
589.1
449.2
(7.3)
(633.5)
6,570.7
6,570.7
6,754.6
(453.7)
(183.9)
626.7
538.7
(502.6)
473.7
4.3
1,140.8
156.9
500.0
529.8
529.9
(443.5)
(74.8)
3.1
544.5
1,032.6
510.2
7.38%
31.08%
24.19%
4.20%
13.53%
19.62%
8.68%
40.29%
18.37%
4.43%
12.81%
15.42%
7.85%
7.00%
8.00%
7.90%
7.00%
8.00%
Included in line item payments to and provision for employees of Schedule-16 Operating expenses.
175
Schedules
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.
Particulars
Plan assets
Defined benefit obligations
Amount not recognised as an asset (limit in para
59(b) of AS-15 on employee benefits)
Surplus/(deficit)
Experience adjustment on plan assets
Experience adjustment on plan liabilities
Year ended
March 31,
2016
6,933.0
7,386.7
(453.7)
(345.7)
120.1
Year ended
March 31,
2015
Year ended
March 31,
2014
Year ended
March 31,
2013
` in million
Year ended
March 31,
2012
6,570.7
6,754.6
5,729.9
5,818.5
5,530.5
5,643.1
5,027.4
5,247.2
(183.9)
589.1
41.9
(88.6)
(29.5)
217.6
(112.6)
34.4
153.6
(219.8)
20.1
44.1
The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.
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, 2016 (March 31, 2015: Nil).
The following tables set forth, for the periods indicated, reconciliation of opening and closing balance of the present
value of the defined benefit obligation for provident fund.
` in million
Particulars
Opening obligations
Service cost
Interest cost
Actuarial (gain)/loss
Employees contribution
Liability transferred from/to other companies
Benefits paid
Obligations at end of the year
Opening plan assets
Expected return on plan assets
Actuarial gain/(loss)
Employer contributions
Employees contributions
Asset transferred from/to other companies
Benefits paid
Closing plan assets
Plan assets at the end of the year
Present value of the defined benefit obligations at the end of the year
Asset/(liability)
Cost for the year1
Service cost
Interest cost
Expected return on plan assets
Actuarial (gain)/loss
Net cost
176
Year ended
March 31, 2016
Year ended
March 31, 2015
17,746.8
925.4
1,382.0
199.0
1,905.1
120.1
(2,357.8)
19,920.6
17,746.8
1,572.3
8.7
925.4
1,905.1
120.1
(2,357.8)
19,920.6
19,920.6
19,920.6
15,693.3
920.4
1,383.2
322.3
1,814.6
100.9
(2,487.9)
17,746.8
15,689.8
1,362.6
346.4
920.4
1,814.6
100.9
(2,487.9)
17,746.8
17,746.8
17,746.8
925.4
1,382.0
(1,572.3)
190.3
925.4
920.4
1,383.2
(1,362.6)
(24.1)
916.9
Schedules
Year ended
March 31, 2016
Year ended
March 31, 2015
1,581.0
990.1
1,709.0
984.9
41.55%
53.73%
2.72%
2.00%
39.49%
54.11%
2.99%
3.41%
7.85%
9.03%
7.68%
8.68%
8.75%
7.90%
8.74%
7.96%
8.80%
8.75%
1.
Included in line item payments to and provision for employees of Schedule-16 Operating expenses.
Experience adjustment
Particulars
Plan assets
Defined benefit obligations
Amount not recognised as an asset (limit in para 59(b) of AS-15 on
employee benefits)
Surplus/(deficit)
Experience adjustment on plan assets
Experience adjustment on plan liabilities
Year ended
March 31,
2016
19,920.6
19,920.6
Year ended
March 31,
2015
Year ended
March 31,
2014
` in million
Year ended
March 31,
2013
17,746.8
17,746.8
15,689.8
15,693.3
13,719.5
13,719.5
8.7
199.0
346.4
322.3
(3.5)
(150.5)
(49.1)
(22.1)
(26.4)
The Bank has contributed ` 1,612.8 million to provident fund for the year ended March 31, 2016 (March 31, 2015:
` 1,511.0 million), which includes compulsory contribution made towards employee pension scheme under
Employees Provident Fund and Miscellaneous Provisions Act, 1952.
Superannuation Fund
Bank has contributed ` 122.7 million for the year ended March 31, 2016 (March 31, 2015: ` 110.7 million) to
superannuation fund.
38. Movement in provision for credit card/debit card/savings account reward points
The following table sets forth, for the periods indicated, movement in provision for credit card/debit card/savings
account reward points.
` in million
Particulars
Opening provision for reward points
Provision for reward points made during the year
Utilisation/write-back of provision for reward points
Closing provision for reward points1
Year ended
March 31, 2016
Year ended
March 31, 2015
1,083.2
1,535.1
(1,200.8)
1,417.5
836.0
1,144.0
(896.8)
1,083.2
1. The closing provision is based on the actuarial valuation of accumulated credit card/debit card/savings account reward points.
This amount will be utilised towards redemption of the credit card/debit card/savings accounts reward points.
177
Schedules
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
Provisions for depreciation of investments
Provision towards non-performing and other assets1
Provision towards income tax
- Current
- Deferred
Provision towards wealth tax
Collective contingency and related reserve2
Other provisions and contingencies3
Total provisions and contingencies
Year ended
March 31, 2016
Year ended
March 31, 2015
1,706.9
72,156.7
2,979.2
31,412.7
57,886.1
(33,191.8)
36,000.0
6,814.6
141,372.5
48,591.4
(2,195.7)
50.0
4,607.9
85,445.5
1. Includes provision towards NPA amounting to ` 64,019.9 million (March 31, 2015: ` 30,232.5 million).
2. The weak global economic environment, the sharp downturn in the commodity cycle and the gradual nature of the domestic
economic recovery has adversely impacted the borrowers in certain sectors like iron and steel, mining, power, rigs and
cement. While the banks are working towards resolution of stress on certain borrowers in these sectors, it may take some
time for solutions to be worked out, given the weak operating and recovery environment. In view of the above, the Bank has
on a prudent basis made a collective contingency and related reserve during the year ended March 31, 2016, amounting
to ` 36,000.0 million towards exposures to these sectors. This is over and above provisions made for non-performing and
restructured loans as per RBI guidelines.
3. Includes general provision towards standard assets amounting to ` 2,970.1 million (March 31, 2015: ` 3,847.9 million).
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 Accounting Standard - 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 but 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
Opening provision
Movement during the year (net)
Closing provision
1.
178
At
March 31, 2016
At
March 31, 2015
3,978.0
2,168.6
6,146.6
3,795.2
182.8
3,978.0
Schedules
The following table sets forth for the year ended March 31, 2016, the details of provisioning pertaining to fraud accounts.
` in million
At
March 31, 2016
Particulars
5,670
3,622.8
1,212.4
40A. 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
Opening balance
Amounts transferred during the year
Amounts reimbursed by the Fund towards claims during the year
Closing balance
At
March 31, 2016
At
March 31, 2015
2,575.8
1,054.7
(46.4)
3,584.1
2,598.8
(23.0)
2,575.8
The provision for income tax (including deferred tax) for the year ended March 31, 2016 amounted to ` 24,694.3
million (March 31, 2015: ` 46,395.7 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 partiesand specified transactions with domestic related parties are primarily at arms length so
that the above legislation does not have material impact on the financial statements.
At March 31, 2016, the Bank has recorded net deferred tax asset of ` 47,700.3 million (March 31, 2015: ` 14,480.0
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
At
March 31, 2016
At
March 31, 2015
68,974.1
5,877.5
4,458.7
79,310.3
37,860.0
50.5
3,118.1
41,028.6
25,775.6
610.1
5,224.3
31,610.0
47,700.3
21,273.0
5,270.7
4.9
26,548.6
14,480.0
Particulars
1.
These items are considered in accordance with the requirements of Income Computation and Disclosure Standards.
179
Schedules
Dividend received from Indian subsidiaries, on which dividend distribution tax has been paid by them and dividend
received from offshore subsidiaries, on which tax has been paid under section 115BBD of the Income Tax Act,
1961, has been reduced from dividend to be distributed by the Bank for the purpose of computation of dividend
distribution tax as per section 115-O of the Income Tax Act, 1961.
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.
Subsidiaries
ICICI Bank UK PLC, ICICI Bank Canada, ICICI Prudential Life Insurance Company Limited, ICICI Lombard General
Insurance Company Limited, ICICI Prudential Asset Management Company Limited, ICICI Securities Limited, ICICI
Securities Primary Dealership Limited, ICICI Home Finance Company Limited, ICICI Venture Funds Management
Company Limited, ICICI International Limited, ICICI Trusteeship Services Limited, ICICI Investment Management
Company Limited, ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Prudential Trust Limited and ICICI Prudential
Pension Funds Management Company Limited.
ICICI Strategic Investments Fund1, FINO PayTech Limited, I-Process Services (India) Private Limited, NIIT Institute
of Finance, Banking and Insurance Training Limited, Comm Trade Services Limited, ICICI Foundation for Inclusive
Growth, ICICI Merchant Services Private Limited, India Infradebt Limited, India Advantage Fund-III, India Advantage
Fund-IV2 and Akzo Nobel India Limited.
1.
2.
ICICI Bank Eurasia Limited Liability Company, ICICI Equity Fund and I-Ven Biotech Limited ceased to be related parties
from the three months ended March 31, 2015 , December 31, 2015 and March 31, 2016 respectively.
Ms. Chanda Kochhar, Mr. N. S. Kannan, Ms. Vishakha Mulye1, Mr. K. Ramkumar, Mr. Rajiv Sabharwal
1. Identified as related party from the three months ended March 31, 2016.
Mr. Deepak Kochhar, Mr. Arjun Kochhar, Ms. Aarti Kaji, Mr. Mahesh Advani, Ms. Rangarajan Kumudalakshmi,
Ms. Aditi Kannan, Ms. Sudha Narayanan, Mr. Raghunathan Narayanan, Mr. Rangarajan Narayanan, Mr. Vivek Mulye1,
Ms. Vriddhi Mulye1, Mr. Gauresh Palekar1, Ms. Shalaka Gadekar1, Ms. Jaya Ramkumar, Mr. R. Shyam, Ms. R. Suchithra,
Mr. K. Jayakumar, Mr. R. Krishnaswamy, Ms. J. Krishnaswamy, Ms. Pushpa Muralidharan, Ms. Malathi Vinod,
Ms. Sangeeta Sabharwal,Mr. Kartik Sabharwal and Mr. Arnav Sabharwal.
1.
The following were the significant transactions between the Bank and its related parties for the year ended March 31,
2016. 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.
Insurance services
During the year ended March 31, 2016, the Bank paid insurance premium to insurance subsidiaries amounting to
` 1,406.8 million (March 31, 2015: ` 1,200.5 million). The material transactions for the year ended March 31, 2016
were payment of insurance premium to ICICI Lombard General Insurance Company Limited amounting to ` 1,180.3
million (March 31, 2015: ` 1,070.1 million) and to ICICI Prudential Life Insurance Company Limited amounting to
` 226.5 million (March 31, 2015: ` 130.4 million).
During the year ended March 31, 2016, the Banks insurance claims (including the claims received by the
Bank on behalf of key management personnel) from the insurance subsidiaries amounted to ` 167.1 million
Identified as related parties from the three months ended March 31, 2016.
180
Schedules
During the year ended March 31, 2016, the Bank received fees from its subsidiaries amounting to ` 9,009.8 million
(March 31, 2015: ` 7,761.4 million), from its associates/joint ventures/other related entities amounting to ` 9.9 million
(March 31, 2015: ` 10.0 million), from its key management personnel amounting to ` 0.01 million (March 31, 2015:
` 0.3 million) and from relatives of key management personnel amounting to ` 0.01 million (March 31, 2015: Nil). The
material transaction for the year ended March 31, 2016 was with ICICI Prudential Life Insurance Company Limited
amounting to ` 7,712.4 million (March 31, 2015: ` 6,409.8 million).
1.
During the year ended March 31, 2016, the Bank received commission on bank guarantees from its subsidiaries
amounting to ` 38.1 million (March 31, 2015: ` 46.2 million). The material transaction for the year ended March 31,
2016 was with ICICI Bank UK PLC amounting to ` 36.2 million (March 31, 2015: ` 44.4 million).
During the year ended March 31, 2016, the Bank recovered from its subsidiaries an amount of ` 1,228.6 million
(March 31, 2015: ` 1,253.3 million) and from its associates/joint ventures/other related entities an amount of ` 63.9
million (March 31, 2015: ` 57.5 million). The material transactions for the year ended March 31, 2016 were with ICICI
Home Finance Company Limited amounting to ` 323.8 million (March 31, 2015: ` 312.1 million), ICICI Securities
Limited amounting to ` 234.3 million (March 31, 2015: ` 262.6 million), ICICI Lombard General Insurance Company
Limited amounting to ` 201.2 million (March 31, 2015: ` 187.1 million), ICICI Prudential Life Insurance Company
Limited amounting to ` 185.7 million (March 31, 2015: ` 206.6 million) and with ICICI Bank UK PLC amounting to
` 180.2 million (March 31, 2015: ` 175.2 million).
Secondment of employees
During the year ended March 31, 2016, the Bank recovered towards deputation of employees from its subsidiaries
an amount of ` 57.0 million (March 31, 2015: ` 56.4 million) and from its associates/joint ventures/other related
entities an amount of ` 7.7 million (March 31, 2015: ` 7.1 million). The material transactions for the year ended March
31, 2016 were with ICICI Investment Management Company Limited amounting to ` 44.0 million (March 31, 2015:
` 40.0 million), ICICI Securities Limited amounting to ` 10.1 million (March 31, 2015: ` 11.2 million) and with I-Process
Services (India) Private Limited amounting to ` 7.5 million (March 31, 2015: ` 7.1 million).
Purchase of investments
During the year ended March 31, 2016, the Bank purchased certain investments from its subsidiaries amounting to
` 9,506.5 million (March 31, 2015: ` 9,931.6 million). The material transactions for the year ended March 31, 2016
were with ICICI Bank UK PLC amounting to ` 4,237.6 million (March 31, 2015:Nil), ICICI Securities Primary Dealership
Limited amounting to ` 2,936.7 million (March 31, 2015: ` 5,886.8 million) and with ICICI Prudential Life Insurance
Company Limited amounting to ` 2,332.2 million (March 31, 2015: ` 2,877.9 million).
During the year ended March 31, 2016, the Bank invested, through purchase from ICICI Venture Funds Management
Company Limited, in the units of India Advantage Fund-III amounting to Nil (March 31, 2015: ` 499.1 million) and in
the units of India Advantage Fund-IV amounting to Nil (March 31, 2015: ` 417.9 million).
Sale of investments
During the year ended March 31, 2016, the Bank sold certain investments to its subsidiaries amounting to ` 5,146.7
million(March 31, 2015: ` 5,311.6 million). The material transactions for the year ended March 31, 2016 were with
ICICI Lombard General Insurance Company Limited amounting to ` 2,942.9 million (March 31, 2015: ` 928.6 million),
ICICI Securities Limited amounting to ` 1,358.0 million (March 31, 2015: ` 72.8 million), ICICI Prudential Life Insurance
Company Limited amounting to ` 845.8 million (March 31, 2015: ` 902.2 million) and with ICICI Securities Primary
Dealership Limited amounting to Nil (March 31, 2015: ` 3,408.0 million).
Insignificant amount
181
Schedules
During the year ended March 31, 2016, subsidiaries have invested in CDs/bonds issued by the Bank amounting
to Nil (March 31, 2015: ` 3,210.0 million). The material transactions for the year ended March 31, 2016 were with
ICICI Prudential Life Insurance Company Limited amounting to Nil (March 31, 2015: ` 2,000.0 million) and with ICICI
Securities Primary Dealership Limited amounting to Nil (March 31, 2015: ` 1,210.0 million).
Redemption/buyback of investments
During the year ended March 31, 2016, the Bank received ` 2,561.5 million (equivalent to CAD 50.0 million) [March
31, 2015: Nil] on account of redemption of bonds, ` 2,561.5 million (equivalent to CAD 50.0 million) [March 31, 2015:
` 3,922.6 million (equivalent to CAD 80.0 million)] on account of buyback of equity shares and ` 1,900.2 million
(equivalent to CAD 37.1 million) [March 31, 2015: Nil] on account of redemption of preference shares by ICICI Bank
Canada.
During the year ended March 31, 2016, the Bank received Nil [March 31, 2015: ` 4,687.5 million (equivalent to USD
75.0 million)] from ICICI Bank UK PLC on account of buyback of equity shares.
During the year ended March 31, 2016, the Bank received ` 305.0 million (March 31, 2015: ` 74.4 million) from ICICI
Equity Fund, ` 188.2 million (March 31, 2015: ` 118.0 million) from India Advantage Fund-III, and ` 94.6 million (March
31, 2015: ` 21.6 million) from India Advantage Fund-IV on account of redemption of units and distribution of gain/loss
on units.
During the year ended March 31, 2016, the Bank reimbursed expenses to its subsidiaries amounting to ` 108.1 million
(March 31, 2015: ` 60.4 million). The material transactions for the year ended March 31, 2016 were with ICICI Bank
UK PLC amounting to ` 102.6 million (March 31, 2015: ` 57.4 million).
During the year ended March 31, 2016, subsidiaries reimbursed expenses to the Bank amounting to ` 4.2 million
(March 31, 2015: ` 5.8 million).The material transactions for the year ended March 31, 2016 were with ICICI Home
Finance Company Limited amounting to ` 2.7 million (March 31, 2015: Nil), ICICI Lombard General Insurance Company
Limited amounting to ` 0.8 million (March 31, 2015: Nil), ICICI Bank Canada amounting to ` 0.7 million (March 31,
2015: ` 4.7 million) and with ICICI Bank UK PLC amounting to Nil (March 31, 2015: ` 1.1 million).
During the year ended March 31, 2016, the Bank paid brokerage, fees and other expenses to its subsidiaries
amounting to ` 786.0 million (March 31, 2015: ` 833.1 million) and to its associates/joint ventures/other related
entities amounting to ` 5,248.6 million (March 31, 2015: ` 4,645.1 million). The material transactions for the year
ended March 31, 2016 were with I-Process Services (India) Private Limited amounting to ` 2,830.9 million (March
31, 2015: ` 2,362.7 million), ICICI Merchant Services Private Limited amounting to ` 2,341.3 million (March 31, 2015:
` 2,216.0 million) and with ICICI Home Finance Company Limited amounting to ` 652.5 million (March 31, 2015:
` 662.1 million).
During the year ended March 31, 2016, the Bank recovered custodial charges from its subsidiaries amounting to
` 11.3 million (March 31, 2015: ` 11.8 million) and from its associates/joint ventures/other related entities amounting
to ` 1.6 million (March 31, 2015: ` 1.5 million). The material transactions for the year ended March 31, 2016 were with
ICICI Prudential Asset Management Company Limited amounting to ` 8.8 million (March 31, 2015: ` 7.3 million) and
with ICICI Securities Primary Dealership Limited amounting to ` 2.5 million (March 31, 2015: ` 4.5 million).
Interest expenses
During the year ended March 31, 2016, the Bank paid interest to its subsidiaries amounting to ` 402.9 million (March
31, 2015: ` 614.2 million), to its associates/joint ventures/other related entities amounting to ` 102.6 million (March
31, 2015: ` 257.9 million), to its key management personnel amounting to ` 3.8 million (March 31, 2015: ` 6.2
million) and to relatives of key management personnel amounting to ` 3.0 million (March 31, 2015: ` 2.3 million).
182
Schedules
Interest income
During the year ended March 31, 2016, the Bank received interest from its subsidiaries amounting to ` 1,037.5 million
(March 31, 2015: ` 1,407.6 million), from its associates/joint ventures/other related entities amounting to ` 48.2
million (March 31, 2015: ` 48.2 million), from its key management personnel amounting to ` 1.6 million (March 31,
2015: ` 1.0 million) and from relatives of key management personnel amounting to ` 0.8 million (March 31, 2015:
` 1.5 million).The material transactions for the year ended March 31, 2016 were with ICICI Home Finance Company
Limited amounting to ` 721.9 million (March 31, 2015: ` 942.1 million), ICICI Venture Funds Management Company
Limited amounting to ` 161.0 million (March 31, 2015: ` 167.3 million) and with ICICI Bank Canada amounting to
` 23.4 million (March 31, 2015: ` 160.4 million).
Other income
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. During the year ended March 31, 2016, the net loss of the Bank on forex and derivative transactions
entered with subsidiaries was ` 848.3 million (March 31, 2015: net gain of ` 1,887.3 million). The material transactions
for the year ended March 31, 2016 were loss of ` 1,097.4 million (March 31, 2015: gain of ` 1,803.5 million) with ICICI
Bank UK PLC, gain of ` 245.5 million (March 31, 2015: gain of ` 383.0 million) with ICICI Bank Canada, gain of ` 6.8
million (March 31, 2015: loss of ` 144.0 million) with ICICI Securities Primary Dealership Limited and loss of ` 41.5
million (March 31, 2015: loss of ` 184.7 million) with ICICI Home Finance Company Limited.
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.
Dividend income
During the year ended March 31, 2016, the Bank received dividend from its subsidiaries amounting to ` 15,352.1
million (March 31, 2015: ` 15,590.6 million).The material transactions for the year ended March 31, 2016 were
with ICICI Prudential Life Insurance Company Limited amounting to ` 8,744.0 million (March 31, 2015: ` 6,173.6
million), ICICI Securities Limited amounting to ` 1,610.7 million (March 31, 2015: ` 1,860.8 million), ICICI Home
Finance Company Limited amounting to ` 1,261.6 million (March 31, 2015: ` 1,607.5 million), ICICI Securities Primary
Dealership Limited amounting to ` 1,219.5 million (March 31, 2015: ` 1,590.8 million) and with ICICI Bank UK PLC
amounting to Nil (March 31, 2015: ` 1,870.1 million).
Dividend paid
During the year ended March 31, 2016, the Bank paid dividend to its key management personnel amounting to ` 13.8
million (March 31, 2015: ` 10.0 million) and to relatives of key management personnel amounting to ` 0.01 million
(March 31, 2015: ` 0.01 million). The dividend paid during the year ended March 31, 2016 to Ms. Chanda Kochhar was
` 11.1 million (March 31, 2015: ` 7.9 million), to Mr. N. S. Kannan was ` 2.1 million (March 31, 2015: ` 1.1 million) and
to Mr. Rajiv Sabharwal was ` 0.6 million (March 31, 2015: ` 1.0 million).
1.
Remuneration paid to the whole-time directors of the Bank, excluding the perquisite value on account of employee
stock options exercised, during the year ended March 31, 2016 was ` 219.0 million (March 31, 2015: ` 164.5 million).
The remuneration paid for the year ended March 31, 2016 to Ms. Chanda Kochhar was ` 68.8 million (March 31,
2015: ` 53.5 million), to Mr. N. S. Kannan was ` 47.2 million (March 31, 2015: ` 37.4 million), to Ms. Vishakha Mulye1
was ` 10.1 million (March 31, 2015: N.A.), to Mr. K. Ramkumar was ` 48.1 million (March 31, 2015: ` 38.6 million) and
to Mr. Rajiv Sabharwal was ` 44.8 million (March 31, 2015: ` 35.0 million).
1.
Insignificant amount.
Identified as related party from the three months ended March 31, 2016.
183
Schedules
During the year ended March 31, 2016, the Bank sold fixed assets to ICICI Prudential Asset Management company
Limited amounting to ` 0.1 million (March 31, 2015: Nil) and to ICICI Venture Funds Management Company Limited
amounting to Nil (March 31, 2015: ` 0.7 million).
During the year ended March 31, 2016, the Bank purchased fixed assets from ICICI Securities Limited amounting to
` 1.8 million (March 31, 2015: Nil), from ICICI Venture Funds Management Company Limited amounting to ` 0.2
million (March 31, 2015: Nil) and from ICICI Prudential Life Insurance Company Limited amounting to Nil (March 31,
2015: ` 23.0 million).
Donation
During the year ended March 31, 2016, the Bank has given donation to ICICI Foundation for Inclusive Growth
amounting to ` 450.0 million (March 31, 2015: ` 260.0 million).
Purchase of loan
During the year ended March 31, 2016, the Bank purchased loan from ICICI Bank UK PLC amounting to ` 5,650.3
million (March 31, 2015: Nil).
During the year ended March 31, 2015, the Bank purchased loan from ICICI Bank Eurasia Limited Liability Company
amounting to ` 1,138.1 million.
Risk participation
During the year ended March 31, 2016, the Bank has entered into funded risk participation with ICICI Bank UK PLC
amounting to ` 6,876.2 million (March 31, 2015: ` 4,101.6 million) and entered into unfunded risk participation with
ICICI Bank Canada amounting to ` 588.0 million (March 31, 2015: ` 312.5 million).
During the year ended March 31, 2016, the Bank purchased bank guarantee from ICICI Bank UK PLC amounting to Nil
(March 31, 2015: ` 1,329.4 million).
Letters of Comfort
The Bank has issued letters of comfort on behalf of its banking subsidiary ICICI Bank UK PLC to Financial Services
Authority, UK (now split into two separate regulatory authorities, the Prudential Regulation Authority and the Financial
Conduct Authority) to confirm that the Bank intends to financially support ICICI Bank UK PLC in ensuring that it meets
all of its financial obligations as they fall due.
The Bank has issued an undertaking on behalf of ICICI Securities Inc. for Singapore dollar 10.0 million (currently
equivalent to ` 492.7 million) to the Monetary Authority of Singapore (MAS) and has executed indemnity agreement
on behalf of ICICI Bank Canada to its independent directors for a sum not exceeding Canadian dollar 2.5 million
(currently equivalent to ` 128.1 million) each, aggregating to Canadian dollar 17.5 million (currently equivalent to
` 896.5 million). The aggregate amount of ` 1,389.2 million at March 31, 2016 (March 31, 2015: ` 1,312.9 million) is
included in the contingent liabilities.
During the year ended March 31, 2016, Canada Deposit Insurance Corporation (CDIC) has released the Bank from the
obligations of the undertaking provided on behalf of its banking subsidiary ICICI Bank Canada.
The letters of comfort in the nature of letters of awareness that were outstanding at March 31, 2016 issued by the
Bank on behalf of its subsidiaries in respect of their borrowings made or proposed to be made, aggregated to
` 12,486.1 million (March 31, 2015: ` 12,748.0 million). During the year ended March 31, 2016, borrowings pertaining
to letters of comfort aggregating ` 261.9 million were repaid.
In addition to the above, the Bank has also issued letters of comfort in the nature of letters of awareness on behalf
of its subsidiaries for other incidental business purposes. These letters of awareness are in the nature of factual
statements or confirmation of facts and do not create any financial impact on the Bank.
184
Schedules
The following table sets forth, the balance payable to/receivable from subsidiaries/joint ventures/associates/other
related entities/key management personnel and relatives of key management personnel at March 31, 2016.
` in million
Items/Related party
Deposits with ICICI Bank
Deposits of ICICI Bank
Call/term money lent
Call/term money borrowed
Reverse repurchase
Advances
Investments of ICICI Bank
Investments of related parties in ICICI Bank
Receivables2
Payables2
Guarantees/ letter of credit/ indemnity given
by the Bank
Guarantees/ letter of credit/ indemnity issued
by related parties
Unfunded risk participation
Swaps/forward contracts (notional amount)
Employee stock options outstanding (Numbers)
6,621.8
250.5
1,650.0
6,749.4
110,282.0
250.0
715.2
297.5
Associates/ joint
ventures/ other
related entities
1,004.4
0.4
2,914.3
1.2
676.7
Key
Management
Personnel
35.8
54.7
7.2
Relatives of Key
Management
Personnel
63.6
7.9
0.01
7,725.6
250.5
1,650.0
6,812.4
113,196.3
257.2
716.4
974.2
15,113.5
0.5
15,114.0
1,852.6
152,219.8
29,811,500
1,852.6
152,219.8
29,811,500
Subsidiaries
Total
1. Insignificant amount.
2. Excludes mark-to-market on outstanding derivative transactions.
3. During the year ended March 31, 2016, 723,500 employee stock options with exercise price of ` 75.3 million were exercised by
the key management Personnel of the Bank.
The following table sets forth, the maximum balance payable to/receivable from subsidiaries/joint ventures/
associates/other related entities/key management personnel and relatives of key management personnel during the
year ended March 31, 2016.
` in million
Items/Related party
Deposits with ICICI Bank
Deposits of ICICI Bank
Call/term money lent
Call/term money borrowed
Reverse repurchase
Advances
Investments of ICICI Bank
Investments of related parties in ICICI Bank1
Receivables
Payables1
Guarantees/ letter of credit/ indemnity given
by the Bank
Guarantees/ letter of credit/ indemnity
issued by related parties
Unfunded risk participation
Swaps/forward contracts (notional amount)
Associates/ joint
Subsidiaries
ventures/ other
related entities
10,297.2
3,656.0
1,503.6
8,000.0
13,375.4
0.9
118,324.3
3,656.9
1,615.0
1,397.5
337.5
4,458.5
793.2
Key
Management
Personnel
192.8
55.3
7.2
Relatives of Key
Management
Personnel
93.7
15.0
0.02
14,239.7
1,503.6
8,000.0
13,429.7
121,981.3
1,620.8
1,735.0
5,251.7
Total
15,558.1
0.7
15,558.8
3,481.6
587.3
263,138.1
3,481.6
587.3
263,138.1
1. Maximum balances are determined based on comparison of the total outstanding balances at each quarter end during the
financial year.
2. Insignificant amount.
185
Schedules
The following table sets forth, the balance payable to/receivable from subsidiaries/joint ventures/associates/other
related entities/key management personnel and relatives of key management personnel at March 31, 2015.
` in million
Items/Related party
Deposits with ICICI Bank
Deposits of ICICI Bank
Call/term money lent
Call/term money borrowed
Reverse repurchase
Advances
Investments of ICICI Bank
Investments of related parties in ICICI Bank
Receivables2
Payables2
Guarantees/ letter of credit/ indemnity given
by the Bank
Guarantees/ letter of credit/ indemnity issued
by related parties
Unfunded risk participation
Swaps/forward contracts (notional amount)
Employee stock options outstanding (Numbers)
7,560.7
443.3
10,139.1
117,751.2
1,615.0
1,128.1
221.4
Associates/ joint
ventures/ other
related entities
2,299.8
1.2
3,656.9
69.5
527.8
Key
Management
Personnel
97.4
37.0
5.2
Relatives of Key
Management
Personnel
42.3
15.0
0.01
10,000.2
443.3
10,192.3
121,408.1
1,620.2
1,197.6
749.2
14,296.4
0.01
14,296.4
3,481.6
312.5
171,988.5
19,255,000
3,481.6
312.5
171,988.5
19,255,000
Subsidiaries
Total
1. Insignificant amount.
2. Excludes mark-to-market on outstanding derivative transactions.
3. During the year ended March 31, 2015, 3,170,000 employee stock options with exercise price of ` 542.5 million were exercised
by the key management personnel of the Bank.
The following table sets forth, the maximum balance payable to/receivable from subsidiaries/joint ventures/
associates/other related entities/key management personnel and relatives of key management personnel during the
year ended March 31, 2015.
` in million
Items/Related party
Deposits with ICICI Bank
Deposits of ICICI Bank
Call/term money lent
Call/term money borrowed
Reverse repurchase
Advances
Investments of ICICI Bank
Investments of related parties in ICICI Bank1
Receivables
Payables1
Guarantees/ letter of credit/ indemnity given
by the Bank
Guarantees/ letter of credit/ indemnity issued
by related parties
Unfunded risk participation
Swaps/forward contracts (notional amount)
10,806.2
3,511.8
10,409.7
631.8
24,970.8
17,296.3
128,038.3
1,615.0
3,240.4
221.4
Associates/ joint
ventures/ other
related entities
7,113.3
2.1
7,584.0
91.41
527.8
Key
Management
Personnel
218.5
38.1
5.2
Relatives of Key
Management
Personnel
42.3
18.2
0.02
18,180.3
3,511.8
10,409.7
631.8
24,970.8
17,354.7
135,622.3
1,620.2
3,331.8
749.2
16,570.6
0.1
16,570.7
3,837.6
312.5
217,941.8
3,837.6
312.5
217,941.8
Subsidiaries
Total
1. Maximum balances are determined based on comparison of the total outstanding balances at each quarter end during the
financial year.
2. Insignificant amount.
186
Schedules
Under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which came into force from
October 2, 2006, certain disclosures are required to be made relating to enterprises covered under the Act. During
the year ended March 31, 2016, the amount paid after the due date to vendors registered under the MSMED Act,
2006 was ` 0.4 million (March 31, 2015: ` 4.7 million). An amount of ` 0.01 million (March 31, 2015: ` 0.06 million) has
been charged to profit & loss account towards payment of interest on these delayed payments.
The penalty imposed by RBI and other banking regulatory bodies during the year ended March 31, 2016 was Nil
(March 31, 2015: ` 10.4 million).
he Board Governance, Remuneration & Nomination Committee (BGRNC or Committee) is the main body
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overseeing remuneration. The BGRNC at March 31, 2016 comprised three independent Directors. The
functions of the Committee include recommendation of appointments of Directors to the Board, evaluation
of the performance of the Wholetime Directors (including the Managing Director & CEO) on predetermined
parameters, recommendation to the Board of the remuneration (including performance bonus and
perquisites) to Wholetime Directors, approval of the policy for and quantum of bonus payable to the
members of the staff, including senior management and key management personnel, framing of guidelines
for the Employees Stock Option Scheme (ESOS) and recommendation of grant of the Banks stock options
to employees and WTDs of the Bank and its subsidiary companies.
External consultants whose advice has been sought, the body by which they were commissioned, and in
what areas of the remuneration process
Not Applicable
Scope of the Banks remuneration policy (eg. by regions, business lines), including the extent to which it
is applicable to foreign subsidiaries and branches
he Compensation Policy of the Bank, approved by the Board on January 31, 2012, pursuant to the guidelines
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issued by RBI, covers all employees of the Bank, including those in overseas branches of the Bank. In addition
to the Banks Compensation Policy guidelines, the overseas branches also adhere to relevant local regulations.
ll employees of the Bank are governed by the Compensation Policy. The total number of permanent
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employees of the Bank at March 31, 2016 was 72,175.
he Bank has under the guidance of the Board and the BGRNC, followed compensation practices intended to
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drive meritocracy within the framework of prudent risk management. This approach has been incorporated
in the Compensation Policy, the key elements of which are given below.
Effective governance of compensation: The BGRNC has oversight over compensation. The Committee
defines Key Performance Indicators (KPIs) for Wholetime Directors and equivalent positions and the
organisational performance norms for bonus based on the financial and strategic plan approved by the
Board. The KPIs include both quantitative and qualitative aspects. The BGRNC assesses organisational
performance as well as the individual performance for Wholetime Directors and equivalent positions.
Based on its assessment, it makes recommendations to the Board regarding compensation for Wholetime
187
Schedules
lignment of compensation philosophy with prudent risk taking: The Bank seeks to achieve a prudent
A
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 and customer service. In addition, the Bank has an
employee stock option scheme aimed at aligning compensation to long term performance through stock
option grants that vest over a period of time. Compensation of staff in financial and risk control functions
is independent of the business areas they oversee and depends on their performance assessment.
Whether the remuneration committee reviewed the firms remuneration policy during the past year, and
if so, an overview of any changes that were made
he Banks Compensation Policy was reviewed by the BGRNC and the Board on April 27, 2015. The section
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on Effective Governance of Compensation in the Compensation Policy was then modified pursuant to the
Guidelines for Implementation of Countercyclical Capital Buffer (CCCB).
Discussion of how the Bank ensures that risk and compliance employees are remunerated independently
of the businesses they oversee
he compensation of staff engaged in control functions like Risk and Compliance depends on their
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performance, which is based on achievement of the key results of their respective functions. Their goal
sheets do not include any business targets.
c) Description of the ways in which current and future risks are taken into account in the remuneration processes.
Overview of the key risks that the Bank takes into account when implementing remuneration measures
he Board approves the risk framework for the Bank and the business activities of the Bank are undertaken
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within this framework to achieve the financial plan. The risk framework includes the Banks risk appetite,
limits framework and policies and procedures governing various types of risk. KPIs of WTDs & equivalent
positions, as well as employees, incorporate relevant risk management related aspects. For example, in
addition to performance targets in areas such as growth and profits, performance indicators include aspects
such as the desired funding profile and asset quality. The BGRNC takes into consideration all the above
aspects while assessing organisational and individual performance and making compensation-related
recommendations to the Board.
Overview of the nature and type of key measures used to take account of these risks, including risk
difficult to measure
The annual performance targets and performance evaluation incorporate both qualitative and quantitative
aspects including asset quality, provisioning, increase in stable funding sources, refinement/improvement
of the risk management framework, effective management of stakeholder relationships and mentoring key
members of the top and senior management.
very year, the financial plan/targets are formulated in conjunction with a risk framework with limit structures
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for various areas of risk/lines of business, within which the Bank operates to achieve the financial plan.
To ensure effective alignment of compensation with prudent risk taking, the BGRNC takes into account
adherence to the risk framework in conjunction with which the financial plan/targets have been formulated.
KPIs of Wholetime Directors and equivalent positions, as well as employees, incorporate relevant risk
management related aspects. For example, in addition to performance targets in areas such as growth
and profits, performance indicators include aspects such as the desired funding profile and asset quality.
The BGRNC takes into consideration all the above aspects while assessing organisational and individual
performance and making compensation-related recommendations to the Board.
Discussion of how the nature and type of these measures have changed over the past year and reasons
for the changes, as well as the impact of changes on remuneration.
188
Not applicable
Schedules
d) Description of the ways in which the Bank seeks to link performance during a performance measurement
period with levels of remuneration
Overview of main performance metrics for Bank, top level business lines and individuals
he main performance metrics include profits, loan growth, deposit growth, risk metrics (such as quality of
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assets), compliance with regulatory norms, refinement of risk management processes and customer service.
The specific metrics and weightages for various metrics vary with the role and level of the individual.
Discussion of how amounts of individual remuneration are linked to the Bank-wide and individual performance
he BGRNC takes into consideration all the above aspects while assessing organisational and individual
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performance and making compensation-related recommendations to the Board regarding the level of
performance bonus for employees and the performance assessment of Wholetime Directors and equivalent
positions. The performance assessment of individual employees is undertaken based on achievements
compared to their goal sheets, which incorporate various aspects/metrics described earlier.
Discussion of the measures the Bank will in general implement to adjust remuneration in the event that
performance metrics are weak, including the Banks criteria for determining weak performance metrics
he Banks Compensation Policy outlines the measures the Bank will implement in the event of a reasonable
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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 on none, part or all of the unvested deferred variable
compensation.
e) Description of the ways in which the Bank seeks to adjust remuneration to take account of the longer term
performance
Discussion of the Banks 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
he quantum of bonus for an employee does not exceed a certain percentage (as stipulated in the
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compensation policy) of the total fixed pay in a year. Within this percentage, if the quantum of bonus exceeds
a predefined threshold percentage of the total fixed pay, a part of the bonus is deferred and paid over a
period. These thresholds for deferrals are same across employees.
Discussion of the Banks policy and criteria for adjusting deferred remuneration before vesting and (if
permitted by national law) after vesting through claw back arrangements
he deferred portion of variable pay is subject to malus, under which the Bank would prevent vesting of all or
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part of the variable pay in the event of an enquiry determining gross negligence, breach of integrity or in the
event of a reasonable evidence of deterioration in financial performance. In such cases, variable pay already
paid out may also be subjected to clawback arrangements, as applicable.
f) Description of the different forms of variable remuneration that the Bank utilizes and the rationale for
using these different forms
Overview of the 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
he Bank pays performance linked retention pay (PLRP) to its front-line staff and junior management
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and performance bonus to its middle and senior 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 also pays variable pay to sales officers and relationship
managers in wealth management roles while ensuring that such pay-outs are in accordance with applicable
regulatory requirements.
he Bank ensures higher proportion of variable pay at senior levels and lower variable pay for front-line staff
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and junior management levels.
189
Schedules
The following table sets forth, for the period indicated. The details of quantitative disclosure for remuneration of
Wholetime Directors (including MD & CEO) and Presidents
` in million, except numbers
Particulars
Number of meetings held by the BGRNC
Remuneration paid to its members during the financial year (sitting fees)
Number of employees who received a variable remuneration award
Number and total amount of sign-on awards made
Number and total amount of guaranteed bonuses awarded
Details of severance pay, in addition to accrued benefits
Breakdown of amount of remuneration awards for the financial year
Fixed1
Variable
Deferred
Non-deferred
Share-linked instruments2,3
Total amount of outstanding deferred remuneration
Cash
Shares (nos.)
Shares-linked instruments4
Other forms
Year ended
March 31, 2016
Year ended
March 31, 2015
8
0.5
5
0.3
6
201.7
4,610,000
172.6
65.0
65.0
4,395,000
23.4
16,725,000
54.3
13,057,500
1. Fixed pay includes basic salary, supplementary allowances, superannuation, contribution to provident fund and gratuity
fund by the Bank. The amount contains part year payouts for a WTD and a President for the year ended March 31, 2016.
2. The shares-linked instruments (ESOPs) are at a face value of ` 2.
3. Excludes special grant of stock options approved by RBI in November 2015 aggregating to 5.8 million stock options and
grant of 1.0 million stock options to a WTD.
4. Includes special grants and stock options granted to a WTD during the year ended March 31, 2016.
Payment of compensation in the form of profit related commission to the non-executive directors.
The Board at its Meeting held on September 16, 2015, subject to the approval of shareholders and such other
regulatory approvals as may be applicable and subject to the availability of net profits at the end of each financial
year approved the payment of profit related commission of ` 1.0 million per annum to be paid to each nonexecutive Director of the Bank (excluding government nominee and part-time Chairman). The Board will seek
the approval of shareholders at the forthcoming Annual General Meeting to be held in June 2016. The Bank has
recognized an amount of ` 6.0 million as profit related commission payable to the non-executive Directors during
the year ended March 31, 2016, subject to the same being approved by shareholders.
The gross amount required to be spent by the Bank on Corporate Social Responsibility (CSR) related activities during
the year ended March 31, 2016 was ` 2,121.1 million (March 31, 2015: `1,715.8 million).
The following table sets forth, for the periods indicated, the amount spent by the Bank on CSR related activities.
Sr.
Particulars
No
(i)
190
1,070.5
644.9
1,715.3
Yet to be
paid in cash
Total
1,144.6
410.7
1,555.3
Schedules
Year ended
March 31, 2016
Year ended
March 31, 2015
450.0
35.6
485.6
260.0
13.2
273.2
The following table sets forth, for the periods indicated, the details of movement of amounts yet to be paid for CSR
related activities.
` in million
Particulars
Opening balance
Provided during the year
Paid during the year
Closing balance
At
March 31, 2016
At
March 31, 2015
451.3
644.9
(280.5)
815.7
385.7
410.7
(345.0)
451.4
The following table sets forth, for the periods indicated, the movement of the outstanding number of complaints.
Complaints relating to Banks customers on Banks ATMs
No. of complaints pending at the beginning of the year
No. of complaints received during the year
No. of complaints redressed during the year
No. of complaints pending at the end of the year
1.
177
5,307
5,377
107
314
5,920
6,057
177
Year ended
March 31, 2016
Year ended
March 31, 2015
1,003
72,772
72,173
1,602
1,535
78,833
79,365
1,003
Year ended
March 31, 2016
Year ended
March 31, 2015
1,707
113,374
113,390
1,691
1,475
116,923
116,691
1,707
The above does not include complaints redressed within 1 working day.
Year ended
March 31, 2015
The above does not include complaints redressed within 1 working day.
Year ended
March 31, 2016
The above does not include complaints redressed within 1 working day.
191
Schedules
Year ended
March 31, 2016
Year ended
March 31, 2015
2,887
191,453
190,940
3,400
3,324
201,676
202,113
2,887
1.
The above does not include complaints redressed within 1 working day.
The following table sets forth, for the periods indicated, the details of awards during the year.
Particulars
Year ended
March 31, 2016
Year ended
March 31, 2015
M. K. Sharma
Chairman
Dileep Choksi
Director
Chanda Kochhar
Managing Director & CEO
Venkataramanan Vishwanath
Partner
Membership no.: 113156
N. S. Kannan
Executive Director
K. Ramkumar
Executive Director
Rajiv Sabharwal
Executive Director
Place : Mumbai
Date : April 29, 2016
192
P. Sanker
Rakesh Jha
Senior General Manager
Chief Financial Officer
(Legal) & Company Secretary
Ajay Mittal
Chief Accountant
Vishakha Mulye
Executive Director
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. While
conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the provisions of the Act and Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act.
Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks
of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant to the Holding Companys preparation of the
consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate
in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Holding Companys Board of Directors, as well as evaluating
the overall presentation of the consolidated financial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their
report referred to in the sub-paragraph (a) of the Other Matters paragraph below, is sufficient and appropriate to provide
a basis for our audit opinion on the consolidated financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated
financial statements give the information required by the Act in the manner so required and give a true and fair view
in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the ICICI
193
EMPHASIS OF MATTER
We draw attention to Note 15 to the consolidated financial statements, which provides details with regard to the creation
of provision relating to Funded Interest Term Loan through utilization of reserves pertaining to the year ended 31 March
2015, as permitted by the RBI vide letter dated 6January2015. Our opinion is not modified in respect of this matter.
OTHER MATTERS
(a) We did not audit the financial statements of thirteen subsidiaries, whose financial statements reflect total assets
of Rs. 1,067,124 million as at 31 March 2016, total revenues of Rs.64,249million and net cash inflows amounting
to Rs. 7,375 million for the year ended on that date, as considered in the consolidated financial statements. The
consolidated financial statements also include the ICICI Groups share of net profit of Rs. 91 million for the year ended
31 March 2016, as considered in the consolidated financial statements, in respect of an associate, whose financial
statements and other financial information have not been audited by us. These financial statements and other financial
information have been audited by other auditors whose reports have been furnished to us by 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 associate, and our report in terms of sub-section (3) and (11) of Section143 of
the Act, insofar as it relates to the aforesaid subsidiaries and associate, is based solely on the reports of the other
auditors.
(b) We have jointly audited with other auditor, the financial statements of a subsidiary whose financial statements reflect
total assets of Rs. 1,047,662 million as at 31 March 2016, total revenues of Rs.231,799 million for the year ended 31
March 2016 and net cash inflows amounting to Rs. 22,195 million for the year ended 31 March 2016. For the purpose
of the consolidated financial statements, we have relied upon the work of the other auditor, to the extent of work
performed by them and our report in terms of sub-section (3) and (11) of Section143 of the Act, insofar as it relates
to this subsidiary, is based solely on the report of the other auditor, to the extent of work performed by them.
(c) The consolidated financial statements also include the ICICI Groups share of net profit of Rs.223 million for the year
ended 31 March 2016, as considered in the consolidated financial statements, in respect of six associates, whose
financial statements and other financial information have not been audited by us. These financial statements and
other financial information are unaudited and have been furnished to us by 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
associates, and our report in terms of sub-section (3) and (11) of Section143 of the Act, insofar as it relates to the
aforesaid associates, is based solely on such unaudited financial statements and other financial information. In our
opinion and according to the information and explanations given to us by Management, these financial statements
and other financial information are not material to the ICICI Group.
(d) The auditors of ICICI Prudential Life Insurance Company, the ICICI Groups Life Insurance subsidiary have reported,
The actuarial valuation of liabilities for life policies in force is the responsibility of the Companys 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 March 31, 2016 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 Insurance Regulatory Development Authority (IRDAI / Authority) and the Institute of
Actuaries of India in concurrence with the Authority. We have relied upon Appointed Actuarys certificate in this
regard for forming our 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 on standalone financial statements of the Company.
(e) The auditors of ICICI Lombard General Insurance Company Limited, the ICICI Groups General Insurance subsidiary
have reported, The Actuarial valuation of liabilities in respect of Incurred But Not Reported (IBNR) and Incurred But
Not Enough Reported (IBNER) as at March31,2016, other than for reinsurance accepted from Declined Risk Pool (DR
Pool) has been duly certified by the Appointed Actuary of the Company and relied upon by us. The Appointed Actuary
has also certified that the assumptions considered by him for such valuation are in accordance with the guidelines
and norms prescribed by the IRDAI and the Actuarial Society of India in concurrence with the IRDAI. In respect of
reinsurance accepted from DR Pool, IBNR / IBNER has been recognized based on estimates received from DR pool.
194
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of audit of the aforesaid consolidated financial statements;
(b) in our opinion, proper books of account as required by law relating to presentation 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;
(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 Rule 7 of the Companies (Accounts) Rules, 2014 to the extent they are
not inconsistent with the accounting policies prescribed by the RBI and to the extent of the direction given by the
RBI in respect to the matter dealt with in the Emphasis of Matter paragraph above;
(e) on the basis of written representations received from the directors of the Holding Company as at 31 March 2016
taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its
subsidiary companies incorporated in India, none of the directors of the ICICI Group and its associate companies
incorporated in India is disqualified as on 31 March 2016 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 over financial reporting of the ICICI Group and its
associate companies and the operating effectiveness of such controls, refer our separate Report in Annexure A;
(g) with respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to
the explanations given to us:
i. the consolidated financial statements disclose the impact of pending litigations on the consolidated financial
position of the ICICI Group and its associates Refer Note 7 to the consolidated financial statements.
ii. provision has been made in the consolidated financial statements, as required under the applicable law or
accounting standards, for material foreseeable losses, if any, on long-term contracts including derivatives
contracts Refer (a) Note 7 to the consolidated financial statements in respect of such items as it relate to the
ICICI Group and its associate entities and (b) the ICICI Groups 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 Holding Company and its subsidiaries and associate companies incorporated in India.
For B S R & Co. LLP
Chartered Accountants
Firms Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Mumbai
29 April 2016
Partner
Membership No: 113156
195
Annexure A
to the Independent Auditors Report of even date on the Consolidated Financial Statements of ICICI Bank Limited
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
143 OF THE COMPANIES ACT, 2013 (THE ACT)
1. In conjunction with our report of the consolidated financial statements of ICICI Bank Limited, its subsidiary companies
and its associate companies (collectively referred to as the Group) as of and for the year ended 31 March 2016, we
have audited the internal financial controls over financial reporting of ICICI Bank Limited (hereinafter referred to as
the Holding Company), its subsidiary companies and associate companies which are companies incorporated in
India, as of that date.
AUDITORS RESPONSIBILITY
3. Our responsibility is to express an opinion on the Groups internal financial controls over financial reporting based
on our audit. We conducted our audit in accordance with the Guidance Note issued by ICAI and the Standards on
Auditing (the Standards), issued by the ICAI and deemed to be prescribed under section 143(10) of the Act, to the
extent applicable to an audit of internal financial controls, both issued by the ICAI. 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 over financial reporting was established and maintained and if
such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls
over financial reporting included obtaining an understanding of internal financial controls over financial reporting,
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 auditors judgment, including
the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. 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 Groups internal financial controls system over financial reporting.
196
Annexure A
to the Independent Auditors Report of even date on the Consolidated Financial Statements of ICICI Bank Limited
OPINION
8. In our opinion, the Holding Company, its subsidiary companies and associate companies, which are companies
incorporated in India, have, in all material respects, an adequate internal financial controls system over financial
reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016,
based on the internal control over financial reporting criteria established by the Group considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the ICAI.
OTHER MATTERS
9. The auditors of ICICI Prudential Life Insurance Company, the Groups Life Insurance subsidiary have reported, We
report that the actuarial valuation of liabilities for life policies in force and policies where premium is discontinued
but liability exists as at March 31, 2016 has been certified by the Appointed Actuary as per the regulations, and has
been relied upon by us as mentioned in para other matters of our audit report on the financial statements for the year
ended March 31, 2016. Our opinion is not modified in respect of above matter.
10. The auditors of ICICI Lombard General Insurance Company Limited, the Groups General Insurance subsidiary have
reported, The Actuarial valuation of liabilities in respect of Incurred But Not Reported (IBNR) and Incurred But Not
Enough Reported (IBNER) as at March31,2016, other than for reinsurance accepted from Declined Risk Pool (DR
Pool) has been duly certified by the Appointed Actuary of the Company as per the Regulations and has been relied
upon by us as mentioned in para 9(h) of our Audit Report on the financial statements for the year ended 31st March,
2016. Accordingly, our opinion on the internal financial controls over financial reporting does not include reporting
on the adequacy and operating effectiveness of the internal controls over the valuation and accuracy of the aforesaid
actuarial liabilities.
11. Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal
financial controls over financial reporting insofar as it relates to seven subsidiary companies, one subsidiary company
which is jointly audited with another auditor and an associate company, which are companies incorporated in India,
is based on the corresponding reports of the auditors of such companies incorporated in India.
ur opinion on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
O
2013 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.
Venkataramanan Vishwanath
Mumbai
29 April 2016
Partner
Membership No: 113156
197
` in 000s
Schedule
1
2
2A
3
4
5
At
31.03.2016
At
31.03.2015
11,631,656
67,019
929,408,451
33,556,448
4,510,773,918
2,203,776,561
970,533,948
527,813,976
9,187,561,977
11,596,608
74,388
835,374,445
25,058,148
3,859,552,465
2,112,520,026
936,193,819
480,421,804
8,260,791,703
ASSETS
Cash and balances with Reserve Bank of India
Balances with banks and money at call and short notice
Investments
Advances
Fixed assets
Other assets
TOTAL ASSETS
6
7
8
9
10
11
272,775,620
377,584,082
2,860,440,872
4,937,291,077
87,134,646
652,335,680
9,187,561,977
258,376,695
217,995,002
2,743,108,109
4,384,900,954
58,712,089
597,698,854
8,260,791,703
Contingent liabilities
Bills for collection
Significant accounting policies and notes to accounts
12
11,176,470,163
217,500,551
10,190,385,671
162,914,850
17 &18
The Schedules referred to above form an integral part of the Balance Sheet.
As per our Report of even date.
M. K. Sharma
Chairman
Dileep Choksi
Director
Chanda Kochhar
Managing Director & CEO
Venkataramanan Vishwanath
Partner
Membership no.: 113156
N. S. Kannan
Executive Director
K. Ramkumar
Executive Director
Rajiv Sabharwal
Executive Director
Place : Mumbai
Date : April 29, 2016
198
P. Sanker
Rakesh Jha
Ajay Mittal
Senior General Manager
Chief Financial Officer Chief Accountant
(Legal) & Company Secretary
Vishakha Mulye
Executive Director
` in 000s
Year ended
31.03.2016
Year ended
31.03.2015
13
14
592,937,057
421,021,403
1,013,958,460
549,639,961
352,522,357
902,162,318
15
16
339,964,746
407,895,615
156,829,183
904,689,544
323,181,538
350,227,119
99,330,676
772,739,333
109,268,916
7,469,331
101,799,585
198,278,702
300,078,287
129,422,985
6,954,333
122,468,652
145,475,548
267,944,200
24,316,000
9,340
23,822,375
13,860,000
5,207,028
27,939,000
7,660
2,919,250
(1,270,000)
11,396,000
(5,600,841)
38,513
29,784
29,075,153
35
5,539,079
198,210,764
300,078,287
28,988,072
35
4,882,652
198,652,588
267,944,200
17.53
17.41
2.00
21.17
20.94
2.00
Schedule
I. INCOME
Interest earned
Other income
TOTAL INCOME
II. EXPENDITURE
Interest expended
Operating expenses
Provisions and contingencies (refer note 18.7)
TOTAL EXPENDITURE
III. PROFIT/(LOSS)
Net profit for the year
Less: Minority interest
IV. APPROPRIATIONS/TRANSFERS
Transfer to Statutory Reserve
Transfer to Reserve Fund
Transfer to Capital Reserve
Transfer to/(from) Investment Reserve Account
Transfer to Special Reserve
Transfer to/(from) Revenue and other reserves
Dividend (including corporate dividend tax) for the previous year
17 & 18
The Schedules referred to above form an integral part of the Profit and Loss Account.
As per our Report of even date.
M. K. Sharma
Chairman
Dileep Choksi
Director
Chanda Kochhar
Managing Director & CEO
Venkataramanan Vishwanath
Partner
Membership no.: 113156
N. S. Kannan
Executive Director
K. Ramkumar
Executive Director
Rajiv Sabharwal
Executive Director
Place : Mumbai
Date : April 29, 2016
Vishakha Mulye
Executive Director
P. Sanker
Rakesh Jha
Ajay Mittal
Senior General Manager
Chief Financial Officer Chief Accountant
(Legal) & Company Secretary
199
` in 000s
Year ended
31.03.2016
Year ended
31.03.2015
135,574,704
176,435,930
(i)
9,567,289
(34,641,416)
88,308,555
3,175,576
28,584,825
(264,335)
142,309
230,447,507
9,102,686
324,940
36,181,416
4,053,835
999,282
(33,994)
94,432
227,158,527
(ii)
(iii)
(A)
(40,179,999)
(648,486,064)
651,221,453
(24,030,865)
132,466,667
70,991,192
(64,985,465)
236,453,234
(144,940,347)
(567,661,237)
264,425,642
57,627,927
94,006,046
(296,541,969)
(53,347,975)
(122,731,417)
(B)
(8,483,857)
703,145
(110,411,892)
(118,192,604)
(12,446,322)
367,499
(117,238,214)
(129,317,037)
2,824,200
455,604,563
(319,709,230)
(46,055,502)
(34,524,887)
58,139,144
(2,411,769)
173,988,005
476,371,697
650,359,702
3,477,284
439,781,096
(271,340,761)
107,195,242
(30,840,867)
248,271,994
(2,434,107)
(6,210,567)
482,582,264
476,371,697
Adjustments for:
(Increase)/decrease in investments
(Increase)/decrease in advances
Increase/(decrease) in deposits
(Increase)/decrease in other assets
Increase/(decrease) in other liabilities and provisions
Refund/(payment) of direct taxes
Net cash flow from/(used in) operating activities (i)+(ii)+(iii)
(C)
(D)
Cash and cash equivalents include cash in hand, balances with RBI, balances with other banks and money at call and short notice.
As per our Report of even date.
M. K. Sharma
Chairman
Dileep Choksi
Director
Chanda Kochhar
Managing Director & CEO
Venkataramanan Vishwanath
Partner
Membership no.: 113156
N. S. Kannan
Executive Director
K. Ramkumar
Executive Director
Rajiv Sabharwal
Executive Director
Place : Mumbai
Date : April 29, 2016
200
P. Sanker
Rakesh Jha
Ajay Mittal
Senior General Manager
Chief Financial Officer Chief Accountant
(Legal) & Company Secretary
Vishakha Mulye
Executive Director
Schedules
At
31.03.2015
12,750,000
1,500,000
12,750,000
1,500,000
3,500,000
3,500,000
11,594,489
11,548,327
35,048
11,629,537
46,162
11,594,489
SCHEDULE 1 - CAPITAL
Authorised capital
6,375,000,000 equity shares of ` 2 each (March 31, 2015: 6,375,000,000 equity shares
of ` 2 each)
15,000,000 shares of ` 100 each (March 31, 2015: 15,000,000 shares of ` 100 each)1
350 preference shares of ` 10 million each (March 31, 2015: 350 preference shares of
` 10 million each)2
2,119
2,119
11,631,656
11,596,608
1. These shares will be of such class and with such rights, privileges, conditions or restrictions as may be determined by the Bank in
accordance with the Articles of Association of the Bank and subject to the legislative provisions in force for the time being in that behalf.
2. Pursuant to RBI circular, the issued and paid-up preference shares are grouped under Schedule 4- Borrowings.
201
Schedules
At
31.03.2015
163,205,519
24,316,000
135,266,519
27,939,000
187,521,519
163,205,519
69,454,700
13,860,000
58,058,700
11,396,000
83,314,700
69,454,700
319,054,660
2,938,832
315,537,750
3,516,910
321,993,492
319,054,660
1,270,000
(1,270,000)
35,153
88,956
(128,553)
34,100
1,053
(4,444)
35,153
26,095,641
23,822,375
23,176,391
2,919,250
49,918,016
26,095,641
22,999,128
6,589,367
(9,411,886)
25,433,235
11,062,032
(13,496,139)
20,176,609
22,999,128
28,174,747
28,174,747
36,694
9,340
95,865
7,660
(66,831)
46,034
36,694
202
Schedules
At
31.03.2016
At
31.03.2015
36,214,248
5,618,430
(1,775,664)
40,057,014
198,210,764
198,210,764
929,408,451
48,334,225
4,015,939
(16,135,916)
36,214,248
198,652,588
(373,886)
198,278,702
835,374,445
1. Includes ` 2,789.2 million (March 31, 2015: ` 3,431.1 million) on exercise of employee stock options.
2. Represents unrealised profit/(loss) pertaining to the investments of venture capital funds.
3. Includes appropriations made by the Bank for profit on sale of investments in held-to-maturity category, net of taxes and transfer
to Statutory Reserve and profit on sale of land and buildings, net of taxes and transfer to Statutory Reserve.
4. Includes capital reserve on consolidation amounting to ` 79.1 million (March 31, 2015: ` 80.7 million).
5. Includes exchange profit on repatriation of retained earnings from overseas branches of the Bank.
6. Represents gain on revaluation of premises carried out by the Bank at March 31, 2016.
7. Includes appropriations made to Reserve Fund for the year ended March 31, 2015 in accordance with regulations applicable to
Sri Lanka branch of the Bank.
8. In terms of the guidelines issued by Central Bank of Sri Lanka, banks in Sri Lanka are no longer required to make appropriation
towards Investment Fund Account. The balance of ` 66.8 million outstanding in Investment Fund Account had been transferred to
revenue and other reserves during the year ended March 31, 2015 in accordance with these guidelines.
9. At March 31, 2015, includes amount utilised for creation of deferred tax liability of ICICI Home Finance Company Limited on balance
in Special Reserve at March 31, 2014 in accordance with National Housing Board circular dated May 27, 2014.
10. At March 31, 2015, includes ` 9,291.6 million utilised with approval of RBI to provide for outstanding Funded Interest Term Loans
(FITL) related to accounts restructured prior to the issuance of RBI guideline in 2008.
11. Includes unrealised profit/(loss), net of tax, of ` (530.9) million (March 31, 2015: ` (407.4) million) pertaining to the investments in
the available-for-sale category of ICICI Bank UK PLC.
12. Includes restricted reserve of ` 1,265.0 million (March 31, 2015: ` 1,281.1 million) primarily relating to lapsed contracts of the life
insurance subsidiary.
` in 000s
At
31.03.2016
At
31.03.2015
25,058,148
8,498,300
33,556,448
20,107,641
4,950,507
25,058,148
` in 000s
At
31.03.2016
At
31.03.2015
39,713,920
563,675,244
1,444,551,013
37,225,312
467,371,342
1,221,061,995
95,975,771
2,366,857,970
4,510,773,918
82,869,479
2,051,024,337
3,859,552,465
4,097,654,748
413,119,170
4,510,773,918
3,495,286,634
364,265,831
3,859,552,465
SCHEDULE 3 - DEPOSITS
A. I. Demand deposits
i) From banks
ii) From others
II. Savings bank deposits
III. Term deposits
i) From banks
ii) From others
TOTAL DEPOSITS
B. I. Deposits of branches in India
II. Deposits of branches/subsidiaries outside India
TOTAL DEPOSITS
203
Schedules
At
31.03.2015
115,411,000
76,202,937
179,758,800
52,409,514
198,462,255
181,754,472
2,866,149
8,701,661
119,263,431
2,613,694
14,671,235
110,250,918
SCHEDULE 4 - BORROWINGS
I.
Borrowings in India
i)
ii)
iii)
iv)
v)
vi)
13,010,000
13,010,000
98,152,555
98,159,787
3,500,000
3,500,000
193,976,348
829,546,336
221,762,009
877,890,429
i)
Capital instruments
22,517,983
21,227,648
65,233,121
61,498,053
9,916,081
492,616,248
783,946,792
9,339,593
419,855,672
722,708,631
1,374,230,225
2,203,776,561
1,234,629,597
2,112,520,026
ii) Bonds and notes
iii) Other borrowings1
TOTAL BORROWINGS OUTSIDE INDIA
TOTAL BORROWINGS
1. Includes borrowings guaranteed by Government of India for the equivalent of ` 5,132.2 million (March 31, 2015: ` 13,336.4 million).
2. Secured borrowings in I and II above amount to ` 169,644.9 million (March 31, 2015: ` 145,869.2 million) excluding borrowings
under Collateralised Borrowing and Lending Obligation, market repurchase transactions with banks and financial institutions and
transactions under Liquidity Adjustment Facility and Marginal Standing Facility.
204
Schedules
At
31.03.2016
At
31.03.2015
48,422,363
1,295,074
35,086,739
164,490,577
29,178,492
249,340,731
527,813,976
52,914,088
2,268,830
43,756,791
133,345,526
25,507,118
222,629,451
480,421,804
1. For the year ended March 31, 2016, includes ` 36,000.0 million towards collective contingency and related reserve.
2. Includes:
a) Proposed dividend amounting to ` 29,075.2 million (March 31, 2015: ` 28,988.1 million).
b) Corporate dividend tax payable amounting to ` 3,786.8 million (March 31, 2015: ` 3,710.6 million).
` in 000s
At
31.03.2016
At
31.03.2015
67,477,373
205,298,247
272,775,620
68,586,251
189,790,444
258,376,695
` in 000s
At
31.03.2016
At
31.03.2015
1,905,925
9,791,225
3,375,768
13,170,773
66,771,325
78,468,475
2,925,489
19,472,030
134,753,654
69,838,416
94,523,537
147,922,798
26,968,517
23,631,657
TOTAL
TOTAL BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
299,115,607
377,584,082
198,522,972
217,995,002
In India
i)
a) In current accounts
b) In other deposit accounts
ii) Money at call and short notice
a) With banks
b) With other institutions
TOTAL
205
Schedules
At
31.03.2015
1,436,810,801
78,470,821
205,599,336
752,957,948
1,334,237,788
70,833,737
235,166,133
747,775,359
271,392,503
2,745,231,409
268,734,925
2,656,747,942
61,032,012
54,177,451
52,301,686
34,058,481
115,209,463
2,860,440,872
86,360,167
2,743,108,109
2,760,752,923
15,521,514
2,662,884,603
6,136,661
2,745,231,409
2,656,747,942
117,260,970
2,051,507
87,689,018
1,328,851
115,209,463
2,860,440,872
86,360,167
2,743,108,109
SCHEDULE 8 - INVESTMENTS
I.
i)
ii)
iii)
iv)
v)
vi)
Others (commercial paper, mutual fund units, pass through certificates,
security receipts, certificate of deposits)2
Government securities
Other approved securities
Shares (includes equity and preference shares)1
Debentures and bonds
Assets held to cover linked liabilities of life insurance business
A.
B.
Investments in India
Gross value of investments3
Less: Aggregate of provision/depreciation/(appreciation)
Net investments
1. Includes cost of investment in associates amounting to ` 3,696.1 million (March 31, 2015: ` 4,590.5 million).
2. In accordance with RBI circular dated July 16, 2015, investment in Rural Infrastructure and Development Fund and other related
deposits of ` 280,661.8 million (March 31, 2015: ` 284,508.2 million) has been re-classified to line item Rural Infrastructure and
Development Fund under Schedule 11 - Other Assets.
3. Includes net appreciation amounting to ` 69,077.9 million (March 31, 2015: ` 140,769.2 million) on investments held to cover linked
liabilities of life insurance business.
206
Schedules
At
31.03.2016
At
31.03.2015
143,811,829
849,039,557
3,944,439,691
4,937,291,077
3,948,314,956
103,079,622
885,896,499
4,937,291,077
139,070,145
680,082,886
3,565,747,923
4,384,900,954
3,611,662,833
112,798,745
660,439,376
4,384,900,954
924,348,694
44,329,101
283,403
2,525,626,771
3,494,587,969
762,092,862
35,374,080
146,618
2,202,248,007
2,999,861,567
18,204,673
12,899,084
42,433,900
1,013,131,071
368,933,464
1,442,703,108
4,937,291,077
48,389,649
1,000,048,245
323,702,409
1,385,039,387
4,384,900,954
` in 000s
At
31.03.2016
At
31.03.2015
51,764,728
29,609,849
(724,254)
(13,358,550)
67,291,773
47,929,434
4,464,603
(629,309)
(12,257,917)
39,506,811
55,271,663
7,510,219
(3,214,712)
(42,138,931)
17,428,239
50,801,492
7,518,817
(3,048,646)
(38,392,681)
16,878,982
17,299,544
(14,884,909)
2,414,635
87,134,646
17,299,544
(14,973,248)
2,326,296
58,712,089
I. Premises
At cost at March 31 of preceding year
Additions during the year1
Deductions during the year
Depreciation to date2
Net block3
II. Other fixed assets (including furniture and fixtures)
At cost at March 31 of preceding year
Additions during the year
Deductions during the year
Depreciation to date4
Net block
III. Assets given on lease
At cost at March 31 of preceding year
Additions during the year
Deductions during the year
Depreciation to date, accumulated lease adjustment and provisions5
Net block
TOTAL FIXED ASSETS
1. Includes ` 28,174.7 million added on revaluation carried out by the Bank on March 31, 2016.
2. Includes depreciation charge amounting to ` 1,513.3 million (March 31, 2015: ` 1,558.5 million).
3. Includes assets of ` 13.6 million of the Bank (March 31, 2015: ` 2.0 million) which are held for sale.
4. Includes depreciation charge amounting to ` 6,725.6 million (March 31, 2015: ` 6,073.1 million).
5. Includes depreciation charge/lease adjustment amounting to ` 192.2 million (March 31, 2015: ` 350.6 million).
207
Schedules
At
31.03.2015
77,457,994
35,319,277
1,710
18,158,876
1,454,762
13,542,444
49,611,861
280,661,817
176,126,939
652,335,680
71,772,042
37,594,663
2,230
875,462
2,050,488
13,598,473
16,134,788
284,508,152
171,162,556
597,698,854
1. Includes certain non-banking assets acquired in satisfaction of claims which are in the process of being transferred in the Banks
name.
2. Includes goodwill on consolidation amounting to ` 1,257.0 million (March 31, 2015: ` 1,257.0 million).
` in 000s
At
31.03.2016
At
31.03.2015
41,298,568
12,455
3,740,067,266
45,940,699
65,787
3,047,985,649
750,021,991
262,980,560
474,131,095
468,883,265
5,385,604,359
53,470,604
11,176,470,163
755,773,834
248,099,209
496,851,207
534,295,396
5,021,951,604
39,422,286
10,190,385,671
208
Schedules
Year ended
31.03.2015
415,508,980
143,244,729
3,039,556
31,143,792
592,937,057
380,597,058
137,799,376
3,661,576
27,581,951
549,639,961
1. Interest on Rural Infrastructure and Development Fund and other related deposits (RIDF) of ` 16,618.9 million (March 31, 2015:
` 13,518.0 million) has been re-classified from line item income on investments to Others consequent to re-classification of RIDF
investments from Schedule 8 - Investments to Schedule 11 - Other assets.
2. Includes interest on income tax refunds amounting to ` 3,274.4 million (March 31, 2015: ` 2,753.5 million).
3. Includes interest and amortisation of premium on non-trading interest rate swaps and foreign currency swaps.
` in 000s
Year ended
31.03.2016
Year ended
31.03.2015
87,696,973
46,675,463
(4,248,050)
264,335
23,794,434
263,839,764
2,998,484
421,021,403
83,938,513
24,787,803
(167,456)
33,994
22,073,402
220,771,454
1,084,647
352,522,357
1. Includes profit on sale of part of equity investment in ICICI Prudential Life Insurance Company Limited and ICICI Lombard General
Insurance Company Limited.
2. Includes profit/(loss) on sale of assets given on lease.
3. Includes exchange profit/(loss) on repatriation of retained earnings/capital from overseas branches/subsidiaries.
4. Includes share of profit/(loss) from associates of ` 174.0 million (March 31, 2015: ` 198.3 million).
` in 000s
Year ended
31.03.2016
Year ended
31.03.2015
219,989,769
15,587,314
104,387,663
339,964,746
207,723,125
16,935,155
98,523,258
323,181,538
209
Schedules
Year ended
31.03.2015
69,122,888
12,424,715
1,742,022
7,199,746
8,238,922
192,206
62,939
230,227
1,127,613
4,028,285
65,683,216
11,540,155
1,587,878
5,281,639
7,631,612
350,597
59,228
222,336
1,272,588
3,744,913
11,540,341
3,332,350
11,521,566
53,973,461
178,736,575
44,421,759
407,895,615
10,082,794
3,147,514
10,131,867
41,274,246
150,365,430
37,851,106
350,227,119
1. Includes commission expenses and reserves for actuarial liabilities (including the investible portion of the premium on the
unit-linked policies).
210
Schedules
211
Schedules
Country of
incorporation
Nature of
relationship
Nature of business
1.
2.
3.
Banking
Banking
Securities broking and merchant
banking
100.00%
100.00%
100.00%
4.
5.
6.
USA
USA
India
Subsidiary
Subsidiary
Subsidiary
Holding company
Securities broking
Securities investment, trading and
underwriting
100.00%
100.00%
100.00%
7.
India
Subsidiary
100.00%
8.
India
Subsidiary
Housing finance
100.00%
9.
10.
India
India
Subsidiary
Subsidiary
Trusteeship services
Asset management
100.00%
100.00%
11.
12.
Mauritius
India
Subsidiary
Subsidiary
Asset management
Pension fund management
100.00%
100.00%
13.
India
Subsidiary
Life insurance
67.66%
14.
India
Subsidiary
General insurance
63.82%
15.
India
Subsidiary
51.00%
16.
17.
India
India
Subsidiary
Consolidated as
per AS 21
Trustee company
Unregistered venture capital fund
18.
India
Associate
27.05%
19.
Associate
19.00%
20.
India
Associate
18.79%
21.
22.
23.
24.
India
India
India
India
Associate
Associate
Associate
Associate
Merchant servicing
Infrastructure finance
Venture capital fund
Venture capital fund
19.00%
31.00%
24.10%
47.14%
Ownership
interest
50.80%
100.00%
1. ICICI Prudential Pension Funds Management Company Limited is a wholly owned subsidiary of ICICI Prudential Life Insurance
Company Limited.
2. 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.
3. During the three months ended December 31, 2015, ICICI Equity Fund redeemed its units held by the Group and accordingly, ICICI
Equity Fund has not been consolidated.
4. During the three months ended March 31, 2016, the Group sold its equity shareholding in I-Ven Biotech Limited and accordingly,
I-Ven Biotech Limited has not been consolidated.
212
Schedules
For domestic operations, at the exchange rates prevailing on the date of the transaction with the resultant gain
or loss accounted for in the profit and loss account.
For integral foreign operations, at daily closing rates with the resultant gain or loss accounted for in the profit
and loss account. An integral foreign operation is a subsidiary, associate, joint venture or branch of the reporting
enterprise, the activities of which are based or conducted in a country other than the country of the reporting
enterprise but are an integral part of the reporting enterprise.
For non-integral foreign operations, at the quarterly average closing rates with the resultant gains or losses
accounted for as foreign currency translation reserve.
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 included in the profit and loss account.
Both monetary and non-monetary foreign currency assets and liabilities of non-integral foreign operations are
translated relevant to closing exchange rates notified by FEDAI relevant to 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. On the disposal/partial disposal of a non-integral foreign
operation, the cumulative/proportionate amount of the exchange differences which has been accumulated in the
foreign currency translation reserve and which relates to that operation are recognised as income or expenses in the
same period in which the gain or loss on disposal is recognised.
The premium or discount arising on inception of forward exchange contracts in domestic operations that are entered
to establish the amount of reporting currency required or available at the settlement date of a transaction is amortised
over the life of the contract. 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.
Contingent liabilities on account of guarantees, endorsements and other obligations denominated in foreign currency
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. Further, the interest income on loan accounts where restructuring
has been approved by the Bank under Strategic Debt Restructuring (SDR) scheme of RBI, is recognised upon
realisation.
b) Income from finance leases is calculated by applying the interest rate implicit in the lease to the net investment
outstanding on the lease over the primary lease period. Finance leases entered into prior to April 1, 2001 have
been accounted for as per the Guidance Note on Accounting for Leases issued by the Institute of Chartered
Accountants of India (ICAI). The finance leases entered post April 1, 2001 have been accounted for as per
Accounting Standard 19 - Leases.
213
Schedules
d) Dividend income is accounted on an accrual basis when the right to receive the dividend is established.
e) 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.
f) Project appraisal/structuring fee is accounted for on the completion of the agreed service.
g) Arranger fee is accounted for as income when a significant portion of the arrangement/syndication is completed.
h) Commission received on guarantees issued is amortised on a straight-line basis over the period of the guarantee.
i)
Fund management and portfolio management fees are recognised on an accrual basis.
j)
The annual/renewal fee on credit cards is amortised on a straight line basis over one year.
k) All other fees are accounted for as and when they become due.
l) The Bank deals in bullion business on a consignment basis. The difference between price recovered from
customers and cost of bullion is accounted for at the time of sales to the customers. The Bank also deals in
bullion on a borrowing and lending basis and the interest paid/received is accounted on accrual basis.
m) Income from securities brokerage activities is recognised as income on the trade date of the transaction.
Brokerage income in relation to public or other issuances of securities is recognised based on mobilisation and
terms of agreement with the client.
n) Life insurance premium for non-linked policies is recognised as income 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.
o) In the case of general insurance business, premium is recorded for the policy period at the commencement of
risk and for instalment cases, it is recorded on instalment due dates. Premium earned is recognised as income
over the period of the risk or the contract period based on 1/365 method, whichever is appropriate, on a gross
basis, net of service tax. Any subsequent revision to premium is recognised over the remaining period of risk or
contract period. Adjustments to premium income arising on cancellation of policies are recognised in the period
in which the policies are cancelled. Commission on re-insurance ceded is recognised as income in the period of
ceding the risk. Profit commission under re-insurance treaties, wherever applicable, is recognised as income in
the period of final determination of profits and combined with commission on reinsurance ceded.
p) In case of life insurance business, reinsurance premium ceded is accounted in accordance with the terms of the
relevant treaty with the reinsurer. Profit commission on reinsurance ceded is netted off against premium ceded
on reinsurance.
q) In the case of general insurance business, insurance premium on ceding of the risk is recognised in the period
in which the risk commences. Any subsequent revision to premium ceded is recognised in the period of such
revision. Adjustment to re-insurance premium arising on cancellation of policies is recognised in the period
in which they are cancelled. In case of life insurance business, reinsurance premium ceded is accounted in
accordance with the terms and conditions of the relevant treaties with the reinsurer. Profit commission on
reinsurance ceded is netted off against premium ceded on reinsurance.
r) 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
company level. The expected claim cost is calculated and duly certified by the Appointed Actuary.
214
Schedules
The following entities within the group have granted stock options to their employees:
The Employees Stock Option Scheme (the Scheme) of the Bank provides for grant of options on the Banks equity
shares to wholetime directors and employees of the Bank and its subsidiaries. The Scheme provides that employees
are granted an option to subscribe to equity shares of the Bank that vest in a graded manner. The options may be
exercised within a specified period. ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance
Company have also formulated similar stock option schemes for their employees for grant of equity shares of their
respective companies.
The Group, except the banking subsidiaries, follows the intrinsic value method to account for its 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 latest closing price, immediately prior to the grant date, which is generally the date of the meeting of the
Board Governance, Remuneration & Nomination Committee in which the options are granted, on the stock exchange
on which the shares of the Bank are listed. If the shares are listed on more than one stock exchange, then the stock
exchange where there is highest trading volume on the said date is considered. In the case of ICICI Prudential Life
Insurance Company and ICICI Lombard General Insurance Company, the fair value of the shares is determined based
on an external valuation report. The banking subsidiaries namely, ICICI Bank UK and ICICI Bank Canada account for
the cost of the options granted to employees by ICICI Bank using the fair value method based on binomial tree model.
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.
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 at 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 managements 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.
215
Schedules
216
Schedules
The actuarial gains or losses arising during the year are recognised in the profit and loss account.
Actuarial valuation of the gratuity liability is determined by an 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 Bank contributes 15.00% of the total annual basic salary of certain employees to superannuation funds, a defined
contribution plan, managed and administered by insurance companies. Further, the Bank contributes 10.00% 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 Bank also gives an option to its
employees allowing them to receive the amount 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 employee during the year
are recognised in the profit and loss account.
ICICI Prudential Life Insurance Company, ICICI Prudential Asset Management Company and ICICI Venture Funds
Management Company have accrued for superannuation liability based on a percentage of basic salary payable to
eligible employees for the period of service.
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 employees years
of service with the Bank and applicable salary.
Actuarial valuation of the pension liability is determined by an 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 employers 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.
Actuarial valuation for the interest rate guarantee 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.
217
Schedules
Leave encashment
The Group provides for leave encashment benefit based on actuarial valuation conducted by an independent actuary.
13. Investments
i) Investments of the Bank are accounted for in accordance with the extant RBI guidelines on investment
classification and valuation as given below.
a) All investments are classified into Held to Maturity, Available for Sale and Held for Trading. 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.
b) Held to Maturity 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.
c) Available for Sale and Held for Trading 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 Available
for Sale, is amortised over the remaining period to maturity on constant yield basis and straight line basis
respectively. Quoted investments are valued based on the trades/quotes on the recognised stock exchanges,
subsidiary general ledger account transactions, price list of RBI or prices declared by Primary Dealers Association
of India jointly with Fixed Income Money Market and Derivatives Association (FIMMDA), periodically.
The market/fair value of unquoted government securities which are in the 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 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.
Unquoted equity shares are valued at the break-up value, if the latest balance sheet is available or at ` 1, as
per RBI guidelines.
218
Schedules
d) Treasury bills, commercial papers and certificate of deposits being discounted instruments, are valued at
carrying cost.
e) The units of mutual funds are valued at the latest repurchase price/net asset value declared by the mutual
fund.
f) Costs including brokerage and commission pertaining to investments, paid at the time of acquisition, are
charged to the profit and loss account. Cost of investments is computed based on the First-In-First-Out (FIFO)
method.
g) Profit/loss on sale of investments in the Held to Maturity category is recognised in the profit and loss
account and profit is thereafter appropriated (net of applicable taxes and statutory reserve requirements) to
Capital Reserve. Profit/loss on sale of investments in Available for Sale and Held for Trading categories is
recognised in the profit and loss account.
h) Market repurchase and reverse repurchase transactions, are accounted for as borrowing and lending
transactions respectively in accordance with the extant RBI guidelines. The transactions with RBI under
Liquidity Adjustment Facility (LAF) are accounted for as borrowing and lending transactions.
i) Broken period interest (the amount of interest from the previous interest payment date till the date of
purchase/sale of instruments) on debt instruments is treated as a revenue item.
j) 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 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 for.
k) The Bank follows trade date method of accounting for purchase and sale of investments, except for
government of India and state government securities where settlement date method of accounting is
followed in accordance with RBI guidelines.
l) 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-tomarket loss is charged to profit and loss account and gain, if any, is ignored as per RBI guidelines.
ii) The Banks consolidating venture capital funds carry 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. Bonus
shares and right entitlements are recorded when such benefits are known. Quoted investments are valued on
the valuation date at the closing market price. Quoted investments that are not traded on the valuation date
219
Schedules
iii) The Banks 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 development is reduced from the cost of acquisition.
iv) The Banks 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 Banks overseas banking subsidiaries account for unrealised gain/loss, net of tax, on investment in Available
for Sale category directly in their reserves. Further unrealised gain/loss on investment in Held for Trading
category is accounted directly in the profit and loss account. Investments in Held to Maturity 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, 2000, 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 and redeemable preference shares are considered as Held to Maturity and accordingly
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 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).
c. Mutual fund units are valued based on the previous days 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 and non-convertible preference shares are considered
as Held to Maturity and accordingly stated at amortised cost determined after amortisation of premium or
accretion of discount on a constant yield basis over the holding/maturity period.
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.
220
Schedules
c. Mutual fund investments (other than venture capital fund) are stated at fair value, being the closing net asset
value at balance sheet date.
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 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 total proportion of investments for which subsidiaries have applied accounting policies different from the Bank
as mentioned above, is approximately 21.48% of the total investments at March 31, 2016.
i) Loans and other credit facilities of the Bank are accounted for in accordance with the extant RBI guidelines as
given below:
a) 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 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. Further, NPAs are classified into substandard, doubtful and loss assets based on the criteria stipulated by RBI.
In the case of corporate loans and advances, provisions are made for sub-standard and doubtful assets at
rates prescribed by RBI. Loss assets and the unsecured portion of doubtful assets are provided/written-off
as per the extant RBI guidelines. For loans and advances booked in overseas branches, which are standard
as per the extant RBI guidelines but are classified as NPAs based on host country guidelines, provisions are
made as per the host country regulations. For loans and advances booked in overseas branches, which are
NPAs as per the extant RBI guidelines and as per host country guidelines, provisions are made at the higher
of the provisions required under RBI regulations and host country regulations. Provisions on homogeneous
retail loans and advances, subject to minimum provisioning requirements of RBI, are assessed at a borrower
level, on the basis of the ageing of the loans in the non-performing category. In respect of loans classified
as fraud, the entire amount, without considering the value of security, is provided for over a period of four
quarters starting from the quarter in which fraud has been detected. In accounts where there has been delay
in reporting the fraud to the RBI, the entire amount is provided immediately. In respect of borrowers classified
as non-cooperative borrowers, wilful defaulters and NPAs covered under distressed assets framework of
RBI, the Bank makes accelerated provisions as per extant 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 also holds provisions on loans
under SDR scheme of RBI. The assessment of incremental specific provisions is made after taking into
consideration the existing specific provision held. The specific provisions on retail loans and advances held
by the Bank are higher than the minimum regulatory requirements.
b) Provision due to diminution in the fair value of restructured/rescheduled loans and advances is made in
accordance with the applicable RBI guidelines.
In respect of non-performing loans and advances accounts subjected to restructuring, the account is
upgraded to standard only after the specified period i.e. a period of one year after the date when first payment
of interest or of principal, whichever is later, falls due, subject to satisfactory performance of the account
during the period. A standard restructured loan is upgraded to the standard category when satisfactory
payment performance is evidenced during the specified period and after the loan reverts to the normal level
of standard asset provisions/risk weights.
221
Schedules
c) Amounts recovered against debts written-off in earlier years and provisions no longer considered necessary
in the context of the current status of the borrower are recognised in the profit and loss account.
d) 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,
provision on exposures to step-down subsidiaries of Indian companies and floating provision taken over from
erstwhile Bank of Rajasthan upon amalgamation. For performing loans and advances in overseas branches,
the general provision is made at higher of host country regulations requirement and RBI requirement.
e) 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.
ii) In the case of the Banks housing finance subsidiary, loans and other credit facilities are classified as per the
NHB guidelines into performing and non-performing assets. Further, NPAs are classified into sub-standard,
doubtful and loss assets based on criteria stipulated by NHB. Additional provisions are made against specific
non-performing assets over and above what is stated above, if in the opinion of the management, increased
provisions are necessary.
iii) In the case of the Banks overseas banking subsidiaries, loans are stated net of allowance for credit losses. Loans
are classified as impaired and impairment losses are incurred only if there is objective evidence of impairment
as a result of one or more events that occurred after the initial recognition on the loan (a loss event) and that loss
event (or events) has an impact on the estimated future cash flows of the loans that can be reliably estimated.
An allowance for impairment losses is maintained at a level that management considers adequate to absorb
identified credit related losses as well as losses that have occurred but have not yet been identified.
The total proportion of loans for which subsidiaries have applied accounting policies different from the Bank as
mentioned above, is approximately 10.22% of the total loans at March 31, 2016.
222
Schedules
Basic and diluted earnings per share are computed in accordance with Accounting Standard 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 during 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.
223
Schedules
The following table sets forth, for the periods indicated, the computation of earnings per share.
` in million, except per share data
Year ended
March 31, 2016
Year ended
March 31, 2015
5,807,339,489
101,799.6
17.53
5,785,726,485
122,468.7
21.17
5,840,224,893
101,703.1
17.41
2.00
5,842,092,456
122,340.2
20.94
2.00
Basic
Diluted
FINO PayTech Limited, I-Process Services (India) Private Limited, NIIT Institute of Finance Banking and Insurance
Training Limited, Comm Trade Services Limited, ICICI Foundation for Inclusive Growth, ICICI Merchant Services
Private Limited, India Infradebt Limited, India Advantage Fund-III, India Advantage Fund-IV, Catalyst Management
Services Private Limited and Akzo Nobel India Limited.
India Advantage Fund-IV has been identified as a related party during the three months ended September 30, 2014.
1.
Identified as related party from the three months ended March 31, 2016.
Relatives of key management personnel
Mr. Deepak Kochhar, Mr. Arjun Kochhar, Ms. Aarti Kaji, Mr. Mahesh Advani, Ms. Rangarajan Kumudalakshmi,
Ms. Aditi Kannan, Ms. Sudha Narayanan, Mr. Raghunathan Narayanan, Mr. Rangarajan Narayanan, Mr. Vivek Mulye1,
Ms. Vriddhi Mulye1, Mr. Gauresh Palekar1, Ms. Shalaka Gadekar1, Ms. Jaya Ramkumar, Mr. R. Shyam, Ms. R. Suchithra,
Mr. K. Jayakumar, Mr. R. Krishnaswamy, Ms. J. Krishnaswamy, Ms. Pushpa Muralidharan, Ms. Malathi Vinod,
Ms. Sangeeta Sabharwal, Mr. Kartik Sabharwal, Mr. Arnav Sabharwal and Mr. Sanjiv Sabharwal.
1.
Identified as related parties from the three months ended March 31, 2016.
224
Schedules
1.
Insignificant amount.
Lease of premises, common corporate and facilities expenses
During the year ended March 31, 2016, the Group recovered from its associates/other related entities an amount of
` 87.1 million (March 31, 2015: ` 80.4 million) for lease of premises, common corporate and facilities expenses. The
material transactions for the year ended March 31, 2016 were with ICICI Foundation for Inclusive Growth amounting
to ` 57.1 million (March 31, 2015: ` 52.0 million) and with FINO PayTech Limited amounting to ` 23.2 million (March
31, 2015: ` 22.9 million).
Secondment of employees
During the year ended March 31, 2016, the Group recovered for deputation of employees from its associates/other
related entities an amount of ` 10.7 million (March 31, 2015: ` 19.2 million). The material transactions for the year
ended March 31, 2016 were with I-Process Services (India) Private Limited amounting to ` 7.5 million (March 31,
2015: ` 7.1 million) and with ICICI Foundation for Inclusive Growth amounting to ` 3.2 million (March 31, 2015: ` 12.1
million).
Brokerage, fees and other expenses
During the year ended March 31, 2016, the Group paid brokerage/fees and other expenses to its associates/other
related entities amounting to ` 5,338.7 million (March 31, 2015: ` 4,876.1 million). The material transactions for the
year ended March 31, 2016 were with I-Process Services (India) Private Limited amounting to ` 2,915.9 million (March
31, 2015: ` 2,397.7 million) and with ICICI Merchant Services Private Limited amounting to ` 2,341.3 million (March
31, 2015: ` 2,216.0 million).
Purchase of investments
During the year ended March 31, 2016, the Group invested in the units of India Advantage Fund-IV amounting to Nil
(March 31, 2015: ` 1,970.4 million) and in the units of India Advantage Fund-III amounting to Nil (March 31, 2015:
` 1,163.5 million).
225
Schedules
1.
Insignificant amount.
Remuneration to whole-time directors
Remuneration paid to the whole-time directors of the Bank, excluding the perquisite value on account of employee
stock options exercised, during the year ended March 31, 2016 was ` 219.0 million (March 31, 2015: ` 164.5 million).
The remuneration paid for the year ended March 31, 2016 to Ms. Chanda Kochhar was ` 68.8 million (March 31, 2015:
` 53.5 million), to Mr. N. S. Kannan was ` 47.2 million (March 31, 2015: ` 37.4 million), to Ms. Vishakha Mulye1 ` 10.1
million (March 31, 2015: N.A.), to Mr. K. Ramkumar was ` 48.1 million (March 31, 2015: ` 38.6 million) and to Mr. Rajiv
Sabharwal was ` 44.8 million (March 31, 2015: ` 35.0 million).
1.
Identified as related party from the three months ended March 31, 2016.
Donation
During the year ended March 31, 2016, the Group has given donation to ICICI Foundation for Inclusive Growth
amounting to ` 861.6 million (March 31, 2015: ` 707.3 million).
226
Schedules
1.
At
March 31, 2016
1,004.3
0.4
5,362.6
730.4
37.5
0.5
` in million
At
March 31, 2015
2,033.9
1.2
5,683.3
653.4
69.1
0.01
Insignificant amount.
The following table sets forth, for the periods indicated, the balance payable to/receivable from key management
personnel:
Items
Deposits
Advances
Investments
Employee Stock Options Outstanding (Numbers)
1. During the year ended March 31, 2016, 723,500 employee stock options with exercise price of ` 75.3 million were exercised by
the Key Management Personnel of the Bank (March 31, 2015: 3,170,000 with exercise price of ` 542.5 million).
The following table sets forth, for the periods indicated, the balance payable to/receivable from relatives of key
management personnel:
Items
Deposits
Advances
At
March 31, 2016
63.6
7.9
` in million
At
March 31, 2015
42.3
15.0
The following table sets forth, for the periods indicated, the maximum balance payable to/receivable from key
management personnel:
Items
Deposits
Advances
Investments1
Year ended
March 31, 2016
192.8
55.3
7.2
` in million
Year ended
March 31, 2015
218.5
38.1
5.2
1. Maximum balances are determined based on comparison of the total outstanding balances at each quarter end during the
financial year.
The following table sets forth, for the periods indicated, the maximum balance payable to/receivable from relatives
of key management personnel:
Items
Deposits
Advances
Year ended
March 31, 2016
93.7
15.0
` in million
Year ended
March 31, 2015
42.3
18.2
227
Schedules
7.58% to 8.19%
3.16 to 5.78 years
30.67% to 32.77%
1.62% to 2.11%
The weighted average fair value of options grantedduring the year ended March 31, 2016 was ` 100.50 (March 31,
2015: ` 90.09).
The following table sets forth, for the periods indicated, the summary of the status of the Banks stock option plan.
` except number of options
Stock options outstanding
Particulars
228
205.02
289.28
260.67
161.16
236.36
198.08
Schedules
Number of shares
arising out of options
Weighted average
exercise price
(` per share)
Weighted average
remaining contractual life
(number of years)
2,556,700
60,755,715
96,037,150
32,275,000
86.96
180.24
251.67
308.26
3.03
3.65
7.85
9.08
The following table sets forth, the summary of stock options outstanding at March 31, 2015.
Range of exercise price
(` per share)
60-99
100-199
200-299
300-399
Weighted average
exercise price
(` per share)
80.81
177.35
243.22
321.17
Weighted average
exercise price
(number of years)
2.41
4.41
8.06
9.59
The options were exercised regularly throughout the period and weighted average share price as per NSE price
volume data during the year ended March 31, 2016 was ` 273.37 (March 31, 2015: ` 311.74).
ICICI Life:
ICICI Prudential Life Insurance Company has formulated ESOS for their employees. There is no compensation cost
for the year ended March 31, 2016 based on the intrinsic value of options. If the entity had used the fair value
approach for accounting of options compensation cost for the year ended March 31, 2016 would have been higher
by Nil (March 31, 2015: ` 22.2 million).
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.
` except number of options
Stock options outstanding
Particulars
559,175
499,067
5,999,175
5,999,175
232.45
329.58
108.40
233.72
233.72
588,000
324.93
2,556,531
82.10
7,057,417
232.45
7,057,417
232.45
The following table sets forth, summary of stock options outstanding of ICICI Prudential Life Insurance Company at
March 31, 2016.
Range of exercise price
(` per share)
30-99
100-299
300-400
Number of shares
arising out of options
(number of shares)
Weighted average
exercise price
(` per share)
Weighted average
remaining contractual life
(number of years)
1,006,225
2,445,850
2,547,100
64.91
130.00
400.00
2.9
4.1
2.1
229
Schedules
ICICI General:
ICICI Lombard General Insurance Company has formulated ESOS for their employees. There is no compensation
cost for the year ended March 31, 2016 based on the intrinsic value of options. If the entity had used the fair value
approach for accounting of options compensation cost for the year ended March 31, 2016 would have been higher
by Nil (March 31, 2015: ` 4.5 million).
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.
` except number of options
Particulars
200,200
148.9
254,516
116.10
917,014
67.12
1,468,516
81.82
7,004,248
113.71
8,121,462
109.32
7,004,248
113.71
8,121,462
109.32
The following table sets forth, summary of stock options outstanding of ICICI Lombard General Insurance Company
at March 31, 2016.
Range of exercise price
(` per share)
35-99
100-200
Number of shares
arising out of options
(number of shares)
3,251,898
3,752,350
Weighted average
remaining contractual life
(number of years)
3.50
3.03
If the Group had used the fair value of options based on the binomial tree model, the compensation cost for the
year ended March 31, 2016 would have been higher by ` 3,585.0 million (March 31, 2015: ` 2,761.1 million) and
the proforma consolidated profit after tax would have been ` 98.21 billion (March 31, 2015: ` 119.71 billion). On a
proforma basis, the Groups basic earnings per share would have been ` 16.91 (March 31, 2015: ` 20.69) and diluted
earnings per share would have been ` 16.80 (March 31, 2015: ` 20.47).
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 cost at March 31 of preceding year
Additions during the year
Deductions during the year
Depreciation to date
Net block
230
At
March 31, 2016
At
March 31, 2015
15,735.1
2,507.7
(439.6)
(13,615.4)
4,187.8
13,525.0
2,439.1
(229.0)
(11,876.8)
3,858.3
Schedules
The following table sets forth, for the periods indicated, the details of future rentals payable on operating leases.
` in million
Particulars
Not later than one year
Later than one year and not later than five years
Later than five years
Total
At
March 31, 2016
At
March 31, 2015
470.7
1,195.4
568.8
2,234.9
561.2
562.9
103.1
1,227.2
The terms of renewal are those normally prevalent in similar agreements and there are no undue restrictions in the
agreements.
6. Preference shares
Certain government securities amounting to ` 3,189.8 million at March 31, 2016 (March 31, 2015: ` 3,088.6 million)
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.
7. 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
Provision for depreciation of investments
Provision towards non-performing and other assets
Provision towards income tax
- Current
- Deferred
Provision towards wealth tax
Collective contingency and related reserve
Other provisions and contingencies1
Total provisions and contingencies
1.
Year ended
March 31, 2016
Year ended
March 31, 2015
2,985.1
77,188.6
4,128.9
36,307.6
67,365.4
(33,590.4)
0.2
36,000.0
6,880.3
156,829.2
56,758.0
(2,841.8)
51.1
4,926.9
99,330.7
Includes general provision towards standard assets amounting to ` 3,175.6 million (March 31, 2015: ` 3,927.6 million).
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 but 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 IRDA.
231
Schedules
Year ended
March 31, 2016
Year ended
March 31, 2015
12,999.9
251.0
1,034.7
1,594.7
(1,554.0)
(134.7)
14,191.6
10,103.4
902.9
(4.1)
(1,726.7)
4,050.8
(134.7)
13,191.6
13,191.6
(14,191.6)
10,209.9
217.8
943.5
3,174.7
(1,381.1)
(164.9)
12,999.9
9,018.8
743.3
104.7
(1,534.6)
1,936.1
(164.9)
10,103.4
10,103.4
(12,999.9)
(1,000.0)
(2,896.5)
251.0
1,034.7
(902.9)
1,598.8
172.7
2,154.3
898.8
3,000.0
217.8
943.5
(743.3)
3,070.0
153.5
3,641.5
848.1
3,000.0
1.04%
48.64%
43.23%
2.48%
4.61%
84.51%
7.12%
8.12%
0.25%
7.95%
8.00%
1.50%
7.00%
8.00%
1.50%
7.00%
8.00%
1. For the year ended March 31, 2015, majority of the funds were invested in Government of India securities and corporate bonds.
232
Schedules
Experience adjustment
` in million
Particulars
Plan assets
Defined benefit obligations
Amount not recognised as an asset (limit in para
59(b) of AS 15 on employee benefits)
Surplus/(deficit)
Experience adjustment on plan assets
Experience adjustment on plan liabilities
Year ended
March 31,
2016
Year ended
March 31,
2015
Year ended
March 31,
2014
Year ended
March 31,
2013
Year ended
March 31,
2012
13,191.6
(14,191.6)
10,103.4
(12,999.9)
9,018.8
(10,209.9)
9,526.8
(10,392.5)
9,379.5
(9,602.7)
(1,000.0)
(2,896.5)
(1,191.1)
(865.7)
(223.2)
(4.1)
1,503.4
104.7
1,271.2
(29.1)
2,549.6
102.3
1,525.2
51.7
2,692.3
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
Defined benefit obligation liability
Opening obligations
Add: Adjustment for exchange fluctuation on opening obligation
Adjusted opening obligations
Service cost
Interest cost
Actuarial (gain)/loss
Past service cost
Obligations transferred from/to other companies
Benefits paid
Obligations at the end of year
Opening plan assets, at fair value
Expected return on plan assets
Actuarial gain/(loss)
Contributions
Assets transfer from/to other companies
Benefits paid
Closing plan assets, at fair value
Fair value of plan assets at the end of the year
Present value of the defined benefit obligations at the end of the year
Unrecognised past service cost
Amount not recognised as an asset (limit in para 59(b) of AS 15 on employee
benefits)
Asset/(liability)
Year ended
March 31, 2016
Year ended
March 31, 2015
8,470.2
4.4
8,474.6
834.9
677.5
221.0
8.7
(826.9)
9,389.8
7,862.7
597.1
(398.1)
1,118.1
8.7
(826.9)
8,361.6
8,361.6
(9,389.8)
7,252.6
3.1
7,255.7
716.1
662.8
643.5
(15.6)
(792.3)
8,470.2
6,744.3
518.6
699.4
708.3
(15.6)
(792.3)
7,862.7
7,862.7
(8,470.2)
(1,028.2)
(607.5)
233
Schedules
Year ended
March 31, 2016
Year ended
March 31, 2015
834.9
677.5
(597.1)
619.1
4.3
1,538.7
199.0
745.0
716.1
662.8
(518.6)
(55.9)
3.1
(0.1)
807.4
1,218.0
755.2
23.19%
25.77%
20.06%
3.48%
11.22%
16.28%
23.68%
33.67%
15.35%
3.70%
10.71%
12.89%
7.50%-8.05%
7.00%-10.00%
7.50%-8.50%
7.80%-8.05%
5.00%-10.00%
7.50%-8.50%
Estimated rate of return on plan assets is based on the expectation of the average long-term rate of return on investments of the
Fund during the estimated term of the obligations.
Experience adjustment
` in million
Particulars
Plan assets
Defined benefit obligations
Amount not recognised as an asset (limit in para
59(b) of AS 15 on employee benefits)
Surplus/(deficit)
Experience adjustment on plan assets
Experience adjustment on plan liabilities
Year ended
March 31,
2016
8,361.6
(9,389.8)
Year ended
March 31,
2015
7,862.7
(8,470.2)
Year ended
March 31,
2014
6,744.3
(7,252.6)
Year ended
March 31,
2013
6,394.9
(6,887.3)
Year ended
March 31,
2012
5,724.3
(6,257.9)
(1,028.2)
(607.5)
(0.1)
(508.4)
(0.5)
(492.9)
(533.6)
(398.1)
171.4
699.4
70.6
(8.4)
308.7
51.0
216.0
23.1
119.4
The estimates of future salary increases, considered in actuarial valuation, take into consideration inflation, seniority,
promotion and other relevant factors.
As there is no 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, 2016 (March 31, 2015: Nil).
234
Schedules
Year ended
March 31, 2016
Year ended
March 31, 2015
20,683.7
1,044.9
1,614.4
252.5
2,150.8
68.1
(2,604.9)
23,209.5
20,683.7
1,839.8
27.1
18,356.2
1,046.1
1,615.3
325.7
2,058.2
71.6
(2,789.4)
20,683.7
18,352.7
1,597.5
347.0
1,044.9
2,150.8
68.1
(2,604.9)
23,209.5
23,209.5
(23,209.5)
1,046.1
2,058.2
71.6
(2,789.4)
20,683.7
20,683.7
(20,683.7)
1,044.9
1,614.4
(1,839.8)
225.4
1,044.9
1,866.9
1,119.3
1,046.1
1,615.3
(1,597.5)
(21.3)
1,042.6
1,944.5
1,117.1
42.48%
52.49%
2.35%
2.67%
40.52%
53.06%
2.59%
3.83%
7.65%-7.95%
8.22%-9.03%
7.68%-7.95%
8.14%-9.01%
8.75%
7.80%-7.95%
8.12%-9.00%
7.80%-7.97%
8.19%-9.00%
8.75%
235
Schedules
Experience adjustment
` in million
Particulars
Plan assets
Defined benefit obligations
Amount not recognised as an asset (limit in para 59(b)) AS 15 on
employee benefits)
Surplus/(deficit)
Experience adjustment on plan assets
Experience adjustment on plan liabilities
Year ended
March 31,
2016
23,209.5
(23,209.5)
Year ended
March 31,
2015
20,683.7
(20,683.7)
Year ended
March 31,
2014
18,352.7
(18,356.2)
Year ended
March 31,
2013
16,136.8
(16,136.8)
(3.5)
27.1
252.5
347.0
325.7
(136.3)
(9.9)
17.3
24.2
The Group has contributed ` 2,167.6 million to provident fund including Government of India managed employees
provident fund for the year ended March 31, 2016 (March 31, 2015: ` 2,030.3 million), which includes compulsory
contribution made towards employee pension scheme under Employees Provident Fund and Miscellaneous
Provisions Act, 1952.
9. Provision for income tax
The provision for income tax (including deferred tax) for the year ended March 31, 2016 amounted to ` 33,775.0
million (March 31, 2015: ` 53,916.2 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 international
transactions are at arms length so that the above legislation will not have material impact on the financial statements.
10. Deferred tax
At March 31, 2016, the Group has recorded net deferred tax asset of ` 49,611.9 million (March 31, 2015: ` 16,134.8
million), which has been included in other assets.
The following table sets forth, for the periods indicated, the break-up of deferred tax assets and liabilities into major
items.
` in million
Particulars
70,339.8
5,877.5
6,232.7
82,450.0
39,199.1
50.5
4,463.4
43,713.0
26,632.2
5,329.4
715.4
161.1
22,057.3
5,359.9
161.0
32,838.1
49,611.9
27,578.2
16,134.8
1.
These items are considered in accordance with the requirements of Income Computation and Disclosure Standards.
2.
236
Schedules
i.
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 includes the entire investment and derivative portfolio of the Bank, ICICI Equity Fund (upto
September 30, 2015) and ICICI Strategic Investments Fund.
iv. Other banking includes leasing operations and other items not attributable to any particular business
segment of the Bank. Further, it includes the Banks banking subsidiaries i.e. ICICI Bank UK PLC, ICICI Bank
Canada and ICICI Bank Eurasia LLC (up to December 31, 2014).
v. Life insurance represents results of ICICI Prudential Life Insurance Company Limited.
vi. General insurance represents results of ICICI Lombard General Insurance Company Limited.
vii. Others includes ICICI Home Finance Company Limited, ICICI Venture Funds Management Company
Limited, ICICI International Limited, ICICI Securities Primary Dealership Limited, ICICI Securities Limited,
ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Prudential Asset Management Company Limited,
ICICI Prudential Trust Limited, ICICI Investment Management Company Limited, ICICI Trusteeship Services
Limited, ICICI Kinfra Limited (upto September 30, 2014), I-Ven Biotech Limited (upto December 31, 2015) and
ICICI Prudential Pension Funds Management Company Limited.
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 document International Convergence of Capital Measurement and Capital Standards:
A Revised Framework.
Income, expenses, assets and liabilities are either specifically identified with individual segments or are allocated
to segments on a systematic basis.
The 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, 2016 are not comparable with that of reported
segments for the year ended March 31, 2015 to the extent new entities have been consolidated and entities that
have been discontinued from consolidation.
237
238
Segment results
Unallocated expenses
Capital expenditure
Depreciation
13
14
5,718.9
6,474.5
1,016.3
937.0
14.9
11.2
12
327.1
166.9
750,871.63
Includes tax paid in advance/tax deducted at source (net), deferred tax asset (net).
Unallocated liabilities
11
3.
Segment liabilities
10
799,535.9
6,790.0
39,343.1
Other banking
business
2.
86,162.7
483,414.5
Treasury
(12,454.3)
328,923.5
Wholesale
banking
Unallocated assets2
38,977.4
391,878.0
Retail
banking
1.
Segment assets
Other information
Revenue
Particulars
Sr.
no.
455.4
539.4
1,048,622.53
1,046,996.2
17,715.8
231,798.6
Life
insurance
The following table sets forth, the business segment results for the year ended March 31, 2016.
14,251.9
46,484.7
Others
565.4
464.5
349.6
351.8
156,758.43 281,390.93
153,745.8 279,392.0
7,076.9
66,995.2
General
insurance
(16.5)
(146,320.0)3
(146,320.0)
(15,476.3)
(574,879.1)
Inter- segment
adjustments
8,431.1
8,945.3
9,187,562.0
9,187,562.0
9,187,562.0
84,931.1
9,102,630.9
109,268.9
33,775.2
143,044.1
143,044.1
1,013,958.5
Total
` in million
Schedules
forming part of the Consolidated Accounts (Contd.)
Revenue
Segment results
Unallocated expenses
Depreciation
14
5,111.4
6,109.1
1,073.5
1,110.3
12.8
16.4
519.5
146.8
Capital expenditure
13
3.
12
1,011,969.1
16,343.2
191,367.3
Life
insurance
396.1
2,230.0
655,289.43 1,013,545.83
Includes tax paid in advance/tax deducted at source (net), deferred tax asset (net).
Unallocated liabilities
11
675,480.1
6,672.2
38,097.1
Other banking
business
Segment liabilities
10
2,379,582.6
64,687.0
439,668.1
Treasury
2.
62,240.7
335,025.1
Wholesale
banking
1,297,275.5 2,612,211.8
27,242.8
329,911.8
Retail
banking
1.
Unallocated assets
Segment assets
Other information
Particulars
Sr.
no.
The following table sets forth, the business segment results for the year ended March 31, 2015.
536.7
2,014.1
136,564.23
133,360.9
6,907.2
58,804.9
General
insurance
348.6
356.7
255,574.53
253,632.5
14,634.7
44,731.1
Others
129,423.0
53,967.3
183,390.3
183,390.3
902,162.3
Total
(16.4)
7,982.2
11,983.4
8,260,791.7
(156,450.2)3 8,260,791.7
8,260,791.7
53,729.4
(156,450.2) 8,207,062.3
(15,337.5)
(535,443.1)
Inter- segment
adjustments
` in million
Schedules
forming part of the Consolidated Accounts (Contd.)
239
Schedules
B. Geographical segments
The Group has reported its operations under the following geographical segments.
2. Foreign operations comprise branches and subsidiaries/joint ventures outside India and offshore banking
unit 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, 2016
Year ended
March 31, 2015
932,781.3
81,177.2
1,013,958.5
826,474.0
75,688.3
902,162.3
Domestic operations
Foreign operations
Total
` in million
Assets
At
March 31, 2016
7,321,480.0
1,781,150.9
9,102,630.9
6,504,549.2
1,702,513.1
8,207,062.3
Domestic operations
Foreign operations
Total
Note: Segment assets do not include tax paid in advance/tax deducted at source (net) and deferred tax asset (net).
The following table sets forth, for the periods indicated, capital expenditure and depreciation thereon for the
geographical segments.
Capital expenditure
incurred during the
` in million
Depreciation provided
during the
Year ended
March 31, 2016
Year ended
March 31, 2015
Year ended
March 31, 2016
8,687.2
258.1
8,945.3
11,804.5
178.9
11,983.4
8,270.7
160.4
8,431.1
Domestic operations
Foreign operations
Total
Year ended
March 31, 2015
7,803.8
178.4
7,982.2
240
Schedules
% of total net
assets
Amount
% of total net
profit
Amount
95.4%
897,355.9
95.5%
97,262.9
0.9%
0.4%
1.6%
8,668.6
3,942.3
15,292.1
1.9%
2.3%
1.8%
1,954.7
2,357.4
1,798.5
0.0%
0.0%
0.2%
5.9%
3.7%
0.0%
0.7%
0.0%
5.3
115.5
1,975.6
55,116.6
34,846.6
12.8
6,372.5
255.6
0.0%
(0.0%)
(0.2%)
16.2%
5.0%
0.0%
3.2%
(0.0%)
0.5
(18.5)
(212.3)
16,504.6
5,074.5
0.3
3,256.9
(3.2)
3.8%
4.0%
0.0%
0.0%
0.0%
36,143.9
37,789.8
93.7
127.7
128.9
0.0%
1.1%
(0.0%)
(0.5%)
0.0%
35.5
1,120.5
(4.8)
(477.5)
28.3
0.1%
482.0
(0.1%)
(108.7)
(3.6%)
(33,556.4)
(7.3%)
(7,469.3)
0.0%
(0.0%)
0.0%
0.1%
0.1%
(0.0%)
13.7
(4.4)
12.2
90.6
79.5
(17.6)
(13.1%)
100.0%
(124,061.9)
941,107.1
(19.1%)
100.0%
(19,474.7)
101,799.6
Parent
ICICI Bank Limited
Subsidiaries
Indian
Foreign
ICICI Bank UK PLC
ICICI Bank Canada
ICICI International Limited
ICICI Securities Holdings Inc.
ICICI Securities Inc.
Foreign
NIL
Minority interests
Associates
Indian
Fino Pay Tech Limited
I-Process Services (India) Private Limited
NIIT Institute of Finance Banking and Insurance Training Limited
ICICI Merchant Services Private Limited
India Infradebt Limited
India Advantage Fund III
India Advantage Fund IV
Foreign
NIL
Joint Ventures
NIL
Inter-company adjustments
Total
241
Schedules
M. K. Sharma
Chairman
Dileep Choksi
Director
Chanda Kochhar
Managing Director & CEO
Venkataramanan Vishwanath
Partner
Membership no.: 113156
N. S. Kannan
Executive Director
K. Ramkumar
Executive Director
Rajiv Sabharwal
Executive Director
Place : Mumbai
Date : April 29, 2016
242
P. Sanker
Rakesh Jha
Ajay Mittal
Senior General Manager
Chief Financial Officer Chief Accountant
(Legal) & Company Secretary
Vishakha Mulye
Executive Director
9,977.9
1,547.6
138,958.3
13,602.3
3,021.0
1,066.3
1,954.7
1,392.4
100.00%
Investments
(including investment
in subsidiaries)7
Turnover (Gross
income from
operations)
Profit/(loss) before
taxation
Profit/(loss) after
taxation
Proposed dividend
(including corporate
dividend tax)8
% of shareholding
100.00%
Nil
(477.5)
0.3
(477.2)
0.1
94.5
0.3
128.0
(600.5)
728.2
100.00%
Nil
28.3
0.5
28.8
170.4
Nil
72.7
201.6
(442.8)
571.7
100.00%
1,423.0
1,798.5
925.7
2,724.2
10,665.3
1,799.8
78,591.9
93,884.0
4,304.6
10,987.5
100.00%
Nil
0.5
0.2
0.7
0.4
2.8
0.1
5.4
4.8
0.5
100.00%
Nil
(18.5)
(18.5)
28.4
103.7
14.4
129.9
15.5
100.0
38,923.8
14,323.2
4,475.4
30,371.2
994,415.5 121,911.4
100.00%
Nil
(212.3)
7.2
(205.1)
391.2
67.66%
14,478.9
16,504.6
1,211.1
17,715.7
191,643.9
63.82%
1,614.8
5,074.5
2,002.4
7,076.9
82,959.9
2,232.1
` in million
8,310.5
27,833.4
4,996.7
37,046.8
100.00%
Nil
(4.9)
Nil
(4.9)
13.4
100.00%
Nil
36.0
362.2
398.2
10,415.8
49,254.8
100.00%
1,173.9
1,301.0
476.6
1,777.6
9,671.0
26,909.4
34.1
59.6
50.80%
Nil
0.3
0.1
0.4
5.2
9.8
0.4
13.2
11.8
1.0
51.00%
1,274.7
3,256.9
1,742.5
4,999.4
9,894.5
3,663.8
1,808.0
8,180.5
6,196.0
176.5
100.00%
Nil
(3.2)
1.1
(2.1)
0.5
50.5
7.6
263.2
(14.4)
270.0
ICICI
ICICI
ICICI ICICI Bank ICICI Bank
ICICI
ICICI
ICICI
Prudential Lombard International
UK PLC2 Canada3,4,5 Prudential
Prudential
Prudential
Life
General
Limited2
Trust
Asset Pension Funds
Insurance Insurance
Limited Management Management
Company Company
Company
Company
Limited
Limited
Limited
Limited1
1,965.6
10.0
ICICI
ICICI ICICI Home
ICICI
ICICI ICICI Venture
Securities Securities
Finance Trusteeship
Investment
Funds
Holdings
Inc.1
Company
Services Management Management
Inc.1
Limited
Limited
Company
Company
Limited
Limited
100.00%
1,938.6
2,357.4
1,353.0
3,710.4
11,235.6
13,920.2
161,733.7
2,331.6
1,610.7
Total liabilities
(excluding capital and
reserves)
153,065.1
7,105.2
Total assets
1,563.4
Particulars
ICICI
ICICI
Securities Securities
Primary
Limited
Dealership
Limited
Part A: Subsidiaries
243
244
13.7
12.1
12.2
54.4
1,900,000
13.6
18.79%
Note 3
N.A.
0.1
8,500,000
27.05%
Note 2
N.A.
742.4
March 31,
2015
Fino PayTech
Limited
350.8
35,568,000
19.00%
Note 3
N.A.
179.6
ICICI Merchant
Services Private
Limited
March 31, 2015
90.6
201.8
93,000,000
1,177.8
31.00%
Note 2
N.A.
1,177.8
March 31,
2016
India Infradebt
Limited
N.A.
N.A.
20,445,177
314.5
26.39%
Note 2
Note 4
N.A.
` in million
Falcon
Tyres
Limited
March 31,
2015
Place : Mumbai
Date : April 29, 2016
K. Ramkumar
Executive Director
N. S. Kannan
Executive Director
Rajiv Sabharwal
Executive Director
Chanda Kochhar
Managing Director & CEO
P. Sanker
Rakesh Jha
Ajay Mittal
Senior General Manager
Chief Financial Officer Chief Accountant
(Legal) & Company Secretary
Dileep Choksi
Director
M. K. Sharma
Chairman
Vishakha Mulye
Executive Director
Notes:
1 The above statement has been prepared based on the priniciples of Accounting Standard 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 the Group does
not have any significant influence as defined under AS-23, although the the group holds more than 20.00% of total share capital in those companies.
2 The group has significant influence through holding more than 20.00% of the equity shares in the investee company in terms of Accounting Standard 23,
issued by ICAI.
3 The group has significant influence through representation on the Board of directors of the investee company in terms of Accounting Standard 23, issued
by ICAI.
4 The investment in Falcon Tyres Limited is temporary in nature.
5 Names of associates or joint ventures which are yet to commence operations: None
6 Names of associates or joint ventures which have been liquidated or sold during the year: 3i Infotech Limited.
Pillar 3 disclosures at March 31, 2016 as per Basel III guidelines of RBI have been disclosed separately on
the Banks 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:
Scope of Application
Capital adequacy
Credit risk
Securitisation exposures
Market risk
Operational risk
Liquidity risk
Leverage ratio
Composition of capital
245
Glossary of Terms
Earnings per share
Net profit after tax divided by weighted average number of equity shares outstanding
during the year
Return on assets
Working funds
For the purpose of business ratio, represents averages of total assets as reported in form
X to RBI
Operating profit
Number of employees
Business
Average deposits
Average advances
Capital includes share capital, reserves and surplus (revaluation reserve and foreign
currency translation reserve are considered at discounted amount), capital instruments
and general provisions
RWAs are computed by assigning weights as per the RBI Basel III guidelines to various
classes of assets like cash and bank balance, investments, loans and advances, fixed
assets, other assets and off-balance sheet exposures
Stock of unencumbered high quality liquid assets divided by total net cash outflows
estimated for the next 30 calendar days
Stock of liquid assets which can be readily sold at little or no loss of value or used as
collateral to obtain funds
Average equity
Average assets
For the purpose of performance analysis, represents averages of daily balances, except
averages of foreign branches which are fortnightly averages
Total interest earned less total interest paid divided by average interest earning assets
Average yield
Interest spread
246
Notes
Notes
ICICI Bank won the Best Retail Bank in India, at The Asian Banker Excellence in Retail
Financial Services International Awards 2016 for the third year in a row. The Bank received
the award in recognition of its performance on three counts: accelerated growth in retail
assets and CASA deposits; use of technology to deliver strong and sustained banking
solutions; and improved digital banking services for paperless remittances and a cashless
ecosystem. The Bank won the coveted award after a stringent evaluation process spanning
three months. Considered one of the most prestigious in the industry, this award was
organised by the Singapore-based The Asian Banker, a provider of strategic business
intelligence to the financial services community.
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