ICICI Group: Strategy &

Performance
CLSA Conference
November 19, 2013

Certain statements in these slides are forward-looking statements.

These statements are based on management's current expectations and
are subject to uncertainty and changes in circumstances. Actual results
may differ materially from those included in these statements due to a
variety of factors. More information about these factors is contained in
ICICI Bank's filings with the US Securities and Exchange Commission.
All financial and other information in these slides, other than financial
and other information for specific subsidiaries where specifically
mentioned, is on an unconsolidated basis for ICICI Bank Limited only
unless specifically stated to be on a consolidated basis for ICICI Bank
Limited and its subsidiaries. Please also refer to the statement of
unconsolidated, consolidated and segmental results required by Indian
regulations that has, along with these slides, been filed with the stock
exchanges in India where ICICI Banks equity shares are listed and with
the New York Stock Exchange and the US Securities and Exchange
Commission, and is available on our website www.icicibank.com

Agenda
Objectives and performance
Our approach
Going forward

Our
objective

Sustainable improvement in shareholder returns

Balance sheet
strength

Healthy capital
position

Robust funding
profile

Profitability
improvement

Building granular &

stable income
streams

Efficiency of
operations

Navigating volatile operating environment and markets

Strong capital position

Capital

Capital
16.5%

11.3%
Tier I

CAR

Including profits for H1-2014, Basel III tier

1 ratio at over 12% at September 30,
2013

Sep 30, 2013

Among the best capitalised large Indian banks

Funding

Building a low cost and granular base

CASA deposits

Retail deposits

Increasing proportion of CASA and retail deposits

Lending

Healthy mix and calibrated growth

5%

5%
6%
7%

27%

25%

36%

37%

37%
2%

Unsecured retail

Mar 2012

34%
2%

1%

1%

Secured retail

33%

33%

29%

28%

Mar 2011

26%

25%

Mar 2013

Domestic corporate

Sep 2013
Overseas branches

SME

Retail segment expected to be key growth driver

going forward

Granular
income

Sustained improvement across businesses

Domestic NIM

Improvement in funding base

International NIM
1.80%

Bond/loan repayments covered

by asset maturities; no
refinancing risk

1.60%

1.23%

1.34%

0.88%

FY2011

FY2012

FY2013

Q1-2014

Q2-2014

Granular
income

Substantial increase in overall NIMs

Overall NIM

Driven by profit and

margin focus across
domestic and international
businesses

~65 bps improvement in overall NIM since FY2011

Granular
income

Steady fee streams

Retail fees
Forex & derivative

Focus on building granular

and stable revenues

Commercial banking

Offsetting decline in corporate lending linked fees

Improvement in overall fee growth to 17% in Q22014

10

Granular
income

Regular and increasing dividend income

Diversified financial services

franchise yielding returns
FY2010

FY2012

FY2013

Contributing to increase in non-interest income

11

Operating
efficiency

Driving efficiency on larger network and business

Cost-income %
43%

Sustaining best in class

cost-income ratios

42%
40%

38%

FY2011

FY2012

FY2013

Despite significant scale

up in infrastructure

H1-2014

Focus on cost efficiency to continue

12

Return
profile

Consistent delivery against stated objectives

Standalone RoA

FY2009

H1-2014
1.72%

FY2013
1.66%

Over 70 bps improvement

over FY2009

<1.0%

Consolidated RoE

FY2009
<8.0%

13

FY2013
14.7%

H1-2014
15.1%

Near doubling of
consolidated RoE since
FY2009

Agenda
Objectives and performance
Our approach
Going forward

14

Operating
environment

Economic
conditions

Banking
sector

Impact of weak economy on banking sector

Continued moderation in GDP growth to <5%
Sustained inflationary pressures and high
interest rates
Volatility in exchange rate: policy measures
impacting markets
Moderation in credit and deposit growth
Increase in NPLs and restructured loans:
stress in SME and mid-corporate segments

However, retail trends remain healthy

15

Our
approach

Balanced view given operating environment

Return
on
equity

Across business lines

16

Retail
business

Continued scale up

Sustained
growth in
granular
deposits

Pickup in
portfolio
growth

Growth
in fee
income

Healthy
asset
quality
trends

The Bank continues to scale up its retail business

and invest in strengthening the franchise and
distribution infrastructure

17

Retail
deposit
franchise

Focus on strengthening
Savings deposits

Sep 2012

Sep 2013

Retail deposits

Sep 2012

Sep 2013

Driven by continued investments in physical and

technological infrastructure

18

Investment
in
infrastructure

Significant scale up in physical presence

Network of 3,507 at Sep 2013;

largest in private sector banks
Supplemented by >11,000
ATMs

Largest rural branch network

among private sector banks

Branch network

Metro

Semi Urban

3,100

3,500
2,529

3,000
2,500
2,000

Rural
3,507

4,000
2,752

1,707

1,500

1,000

~75% of branch additions

500
since March 2012 in rural and semi-urban areas

19

Urban

Mar-10

Mar-11

Mar-12

Mar-13

Sep-13

Technology

Efficiency & differentiated customer proposition

Leveraging social
networking
platforms

Advanced mobile
banking platform

Enhanced ATM
functionality

Supporting
customer
service & cost
efficiency
MySavings
Rewards program

20

24x7 electronic
branch

Money2India
Mobile App for
NRIs

Retail
lending

Secured lending driving 20% portfolio growth

Home loans

Sep 2012

Sep 2013

Auto loans

Sep 2012

Along with continued focus on risks:

Sep 2013

Calibrated approach to CV lending

Unsecured portfolio size continues to remain low

21

Retail
fees

Healthy trends driving overall fee growth

Current share of fees

~45%
~55%

Retail

Healthy growth in retail fees

Non-retail

Driven by liability, third party distribution and asset

linked fees

22

Domestic
corporate &
SME

Domestic
corporate (33%
of total loans)

SME (<5% of
total loans)

23

Cautious approach
Trends

Approach

Impact of economic
slowdown on
growth
Weak corporate
profitability

Moderation in
growth with focus
on working capital
Continued focus on
credit selection
Close monitoring

Continued
challenges in
current environment

Maintain low share

of near
ofDescription
SME in the
the contents
term

International
business

Focus on profitability and returns

Branches

Lending primarily
to Indian
corporates

Growth calibrated to global funding

markets; continued focus on margins
Wholesale borrowing repayments
covered by asset maturities

Subsidiaries
Regulatory
expectations
impacting
business model
High capital levels

24

Consolidation of balance sheet

Continued focus on capital
rationalisation: USD 100 mn from UK
& CAD 75 mn from Canada received

Subsidiaries

25

Healthy trends

Insurance

Life insurance: sustained profitability

resulting in healthy returns on
invested capital and dividend payouts
General insurance: significant
improvement in profitability

Asset
management &
broking

Focus on maintaining market position

Business performance linked to
market conditions; however,
franchises remain profitable

Agenda
Objectives and performance
Our approach
Going forward

26

Way
ahead

Focus on balanced approach to continue

Return
on
equity

Across business lines

27

 Higher increase in full year margins & fee

growth
Continue to strengthen funding profile
Improvement in cost-income ratio
Strong profitability in insurance businesses
Improving returns in banking subsidiaries

Profitability

Growth

Risk
management

28

Domestic loan growth targeted at 2%-3%

higher than system, driven by retail
Continued focus on secured retail loan
products; leveraging increased presence
to improve market share
Cautious approach in corporate & SME
Focus on growth in insurance businesses
Diversified portfolio
Selective underwriting & close monitoring
Strong operating performance to absorb
any higher credit losses

Thank you

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