Indian Banking Industry An analysis Institute for Technology

Indian Banking Industry An analysis Institute for Technology and Management, Kharghar August 2010

Agenda Section I • Banking industry overview – – – Global banking industry overview Indian Banks Segmentation Growth Drivers and Challenges Competitive Landscape Banking regulation Section II • ICICI bank profile – – Company business description and segmentation Company history and details Company milestones Company financials and trends

Section I: Banking Industry overview Global Banking overview

Global banking industry overview Domestic credit by banks as % GDP 305 294 Per cent of GDP 300 250 200 8 224 212 188 172 136 150 7. 1 6. 2 6 241 232 Bank NPA as % of Gross Total Loans 7 293 Per cent of GDP 350 132 126 5 4 3. 3 3 2. 5 2 100 72 64 63 50 2006 United States 2007 year United Kingdom Japan 2008 China India Source: - World Bank Database • • 3 1 1. 5 0. 8 0. 9 1. 4 1. 6 1. 7 1. 4 2. 3 0. 9 0 2006 United States 2007 year United Kingdom 2008 Japan China India Source: - World Bank Database Due to RBI regulations banking sector is not over exposed in India as in other economies as US and China, but this also represent growth scope available to Indian banking industry. There is scope of improvement as NPA in India is more than that of developed economies. In comparison to china banking sector in this aspect is performing well.

‘Indian banks need to recognise their inherent brand value potential’……. Global Ranking Banking Rank Bank Domicile 2010 2009 Market cap (In US $ millions) 2010 2009 rating 2010 2009 8 7 1 1 HSBC UK 193794 131577 AAA+ 45 77 10 14 Barclays UK 56, 155 19, 998 AA A- 106 138 24 24 Standard Chartered UK 51, 466 16, 820 AAA- AA+ 36 54 5 7 Citi US 70, 105 36, 498 A+ A 57 69 14 11 JP Morgan US 102, 425 48, 571 AA- 100 139 23 25 Morgan Stanley US 45, 931 15, 399 A+ A+ 187 344 36 70 SBI India 29, 809 9, 834 AA+ AA 440 - 70 110 ICICI India 19, 807 7, 893 AA- A+ - - 141 153 HDFC India 15, 213 7, 785 AA- A- Source: - Brand Finance Global banking 500 report 2010 § 20 Indian banks in the Brand Finance® Global Banking 500, § SBI became the first Indian bank to break into the world’s Top 50 list, its brand value tripled § ICICI Bank, the country’s largest private bank, joined it in the Top 100 list with a 130% jump in its brand value

Indian Banking overview

‘Banks in India with stand the crisis’……. 2008 No. of banks (nos. ) Net worth (` mn) Deposits (`mn) Advances (` mn) NIM (%) Ro. A (%) CAR (%) Net NPA / adv (%) Opt. Profit (` mn) 79 39, 940 420, 260 313, 540 4. 1 13. 0 1. 0 83, 590 Net Profit (` mn) 42, 726 Net Int. Margin (` mn) Change (%) 78 (1. 3) 47, 080 17. 9 519, 700 23. 7 383, 890 22. 4 4. 4 7. 3 1. 1 0. 0 14. 0 7. 7 1. 1 5. 0 1, 11, 349 33. 2 Indian bank performance indicators 2009 52, 771 1, 00, 481 1, 25, 596 23. 5 25. 0 42 45 40 37 35 35 28 30 % Change Particulars 25 24 22 22 20 17 20 18 15 10 6 5 0 2006 Aggregate Deposits 2007 2008 Year Bank Credit 2009 Assets with Banks Source: - RBI Database • Despite economics crisis across the world; banks in India have significant growth • Assets with banks have grow by 35% in FY 09 as of 17% in FY 08. Total assets as of end-March ‘ 09 is ` 4, 960, 064 crores • Deposits have grown by 20% in FY 09 as to 22% in FY 08 & credits disbursed has grown by 18% in FY 09 to 22% in FY 08.

Economic overview

‘Economic growth fueling banking performance’… Number of banks 24 28 26 Public Sector Private Sector Foreign OPERATING ENVIRONMENT • FY 09 – High volatility – Economic slowdown, Weak business sentiment Countered by fiscal and monetary measures • FY 10 –Revival in growth –Abundant liquidity • Current Scenario (FY 11) –Strong growth momentum, Policy tightening –Credit demand expected to increase in retail & infrastructure sectors • Industrial production revives; average growth of 10. 4% in FY 10 against 2. 7% in FY 09 • Capital goods growing at double digit point to revival in investment activity • Capacity utilisation survey of RBI indicates utilisation close to pre-crisis levels • Exports growing since November ‘ 09 Foreign Capital Inflows • Net FII inflow of USD 30 bn in FY 10 as against net outflow in FY 09 • Rupee appreciation of 11. 4% vis-à-vis US dollar during FY 10

‘Development in new sectors ensuring excellent future for banks’…… 70% 60% 50% 40% 30% 20% 10% 0% Petroleum Automobiles including Trucks Computer Software Infrastructure Food Processing Rubber and Rubber Products Construction Textile 2009 All Engineering Mining and Quarrying including Coal Iron & Steel % Growth Industry wise deployment of gross bank credit growth 2010 Source: - RBI Database • Rapid development in infrastructure, iron and steel and computer services have raised demand for credit projecting healthy growth in the banking sector. • Gross NPAs same at 1. 3% as FY 08 in FY 09; Loan disbursement grew by 16. 04% • Credit deposit ratio - down marginally to 73. 9% in FY 09 from 74. 6% in FY 08 • NIM has gone up to 2. 4% as compared to previous year, however it is less than the former years • Interest income as a percentage of total assets has gone up to 7. 4% for FY 09 from 7. 1 % in FY 08 • The Total Assets of the Banking Industry grew by 21. 2% in 2009 as against 25% in 2008

Income and expense growth rate of SCBs in India Interest income CAGR (2004 -05 to 2008 -09 Other* Total Interest Operating Income income expenses 25% 21% 24% 30% 15% Income growth Source: - RBI Database 30% 44% 35% 34% 37% 33% 27% 25% 22% 23%21% 18% 16% 15% 10% 25% 24% 20% 19% 18% 19% 13% 16% 11% 4% 2005 -06 Interest income 2006 -07 Other Income 2007 -08 2008 -09 2005 -06 Total income Net profit Interest expenses 2006 -07 2007 -08 Operating Expenses 2008 -09 Total expenses • Other income has show greater growth potential than interest income towards total income over the years. • With increase in income a subsequent increase in expense is observed although operation expense have reduced considerably. * Other income consist of fee income, commissions Source: - RBI Database 27% 24% 25% Expenses growth 52% 29% Total Net profit expenses

Banking Segmention

Indian Banking Industry Segmentation Reserve Bank of India Non Scheduled Commercial Bank Private Sector (22) Old (15) New (7) Public Sector (26) SBI Group (6+1) Co-operative Bank Foreign (24) Regional rural (6) Urban Bank Local Area Bank State Bank Nationalised (19) Source: - RBI Database • PSU banks majority stakes are held by the Government of India(Go. I) & make up the largest category in the Indian banking system. • Regional Rural Banks (RRBs); established during 1976 -1987 & are owned jointly by the Central Government, concerned State Government and a sponsoring public sector commercial bank. • Private Sector banks have the majority of share capital with private individuals & corporates. Non-nationalized are ‘old’ and nationalised in 1993 are stated as ‘new private banks’. • Foreign banks have their registered and head offices in a foreign country but operate their branches in India.

Growth Drivers

Growth Drivers to banking industry Industrial Development Rapid Economics Growth Increase in Disposable income Retail demand Infrastructure Growth Sectors Telecom Rural Markets Export/Imports Consolidation and Expansion • Industrial development is fueling rapid economics growth giving banking sector a major boost. • Retail Demand: Increase in demand for housing, Car and personal loans • Infrastructure: Infrastructure one of the biggest growth driver is expected to grow @ 35% -3 yr CAGR. • Telecom spectrum lending: 3 G and broadband spectrum auction have increased credit demand • Rural Penetration: Rural penetration by private banks is increasing • Export Imports: Increase in export import enhances inland outland bills business • Consolidations and Expansions: Acquisition, merger and expansion by the industries is very much prevalent since 2009

Competitive Landscape

Competitive Landscape of Indian banking industry Credit Deposit Ratio - Bank Group Wise Competitive Landscape Bank group wise 10% 9% 16% 5% 18% 5% 5% 13% 5% 6% 16% 5% 6% 14% 5% 7% 15% 5% 9% 9% 90 16% 5% 19% 5% 80 73. 3 72. 6 70 79. 8 67. 4 83. 2 84. 3 77. 3 64. 5 69% 67% 76% 73% 75% 73% 70% 68% per cent 60 50 40 30 20 10 Deposits Public Sector banks New private sector banks 2009 2008 Advances 2009 2008 Investments Old private sector banks Foreign Banks Source: - RBI Database 0 2008 Foreign Banks 2008 New private sector banks Assets 2009 Old private sector banks 2008 Public Sector banks 2009 Source: - RBI Database • Public sector banks enjoy over 70% share of gross loans and advances • New private sector banks have shown decline in growth in terms of assets and investments • Credit deposit ratio indicate Foreign banks have been much more aggressive in their lending, followed by the new private sector banks, while the public sector banks have been maintaining a mediocre path.

Profits and income of bank group wise Growth in profit and income of banks group wise 50% 40% 30% % change 20% 10% Public Sector Banks Private Sector Banks 0% -10% 2009 2010 Operating Profit 2009 2010 Net Profit 2009 2010 Interest Income 2009 2010 Foreign Banks Other Income -20% -30% -40% -50% Source: - RBI Database • Public sector banks and private sector banks have show increasing trend in their respective profit and incomes; while foreign banks have shown a negative trend.

Banking Regulation

Banking regulators Banking companies in india is governed by two main legislations Ø Banking regulation act 1949 Ø The reserve bank of india act 1934 – Reviewing monetary policy to maintain economic and financial stability and to ensure adequate financial resources for development – Meeting the currency requirement of the public – Promotion of an efficient financial system – Foreign exchange reserve management – Quarterly monitoring visits to banks displaying financial and systemic weaknesses – The department monitors cases of frauds perpetrated in banks and reported to it • Other regulation: – The negotiable instruments act 1881 – Transfer of property act 1882 – Banking secrecy act – Companies act 1956 – Banker’s book evidence act – Banking companies act 1970/1980 – for nationalized bank only

Regulations (Policy) impact on company With increase in SLR, lending resources of the banks contract and their capacity to grant credit is reduced correspondingly or vice versa • CAR Ratio depicts the Solvency Position of the bank • Repo Rate and Bank Rate have direct impact on cost of Fund & profitability of the banks. • High credit to deposit ratio increases the profitability of the banks Regulation - Limiting Factor: • Bank cant sanction loan below base rate, despite of having funds they are underutilized. • Bank have to follow Quota limit while lending to the various sectors (Agriculture, Housing, Education, SSI etc. ) Foreign bank in India: • They have to take the permission of RBI and FEMA • Take over of an Indian bank except for weak bank identified by RBI not permitted • FDI limit for a foreign bank is 74% of total paid-up capital of the bank. • The initial minimum paid up capital for a new bank is ` 200 crores which is increased to 300 crore with in 3 years of commencement of business International: Barriers for Indian banks • Indian bank have to follow that respective country norms as well as the Basel II norms. •

Current policy rates • • • Source: - RBI Average Credit-Deposit ratio of the banking industry is -70 % CAR: Capital Adequacy Ratio : 9% CRR – 6 %, SLR – 25 % Base Rate: 7. 5 - 8% Deposit Rate: 6% - 7. 5% Saving banking rate: 3. 5% Repo Rate: 5. 75% Reverse Repo : 4. 5% Although the critical rates have reduced since the global economic crisis (FY 08); RBI is still maintaining a tight monetary policy in order to curb inflation and attain stability along with superior economic growth.

Agenda Section I • Banking industry overview – – – Global banking industry overview Indian Banks Segmentation Growth Drivers and Challenges Competitive Landscape Section II • ICICI bank profile – – – Company business description and segmentation Company history and milestones Company details Company peer group comparison Company financials and trends

Business Description and segmentation ICICI Bank Limited, a private sector banking company engaged in providing a range of banking products and financial services q Investment Banking q Commercial Banking q Retail Banking q Private Banking q Asset Management q Mortgages q Credit Cards q Others Business Segmentation • Retail Banking- Retail assets business, Rural micro-banking. • Wholesale Banking- Corporate Banking business, Banking services(for government, large corporate), Treasury, Structured finance • Project Finance- Infrastructure, Oil & Gas, Manufacturing and Shipping sectors • International Business & Special Assets Management-International operations • Corporate Centre- Investor relations, Risk management, Corporate branding Source: - ICICI bank website

Company History and Milestones 1955 - ICICI. incorporated at the initiative of World Bank, the Government of India and representatives of Indian industry. 2002 - ICICI Ltd merged into ICICI Bank Ltd in the year 1994 - ICICI established Banking Corporation as a banking subsidiary 2001 - ICICI acquired Bank of Madura(est. 1943) was a Chettiar bank, Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960 s. • 2006: 1 st Indian bank to issue hybrid Tier-1 perpetual debt in the international markets. Opened branches in UK, Belgium & representative offices in Bangkok, Jakarta & Kuala Lumpur. • 2007: Amalgamated Sangli Bank-headquartered in Sangli, in Maharashtranwhich had 158 branches in Maharashtra and another 31 in Karnataka. • 2008: Launched I Mobile - banking transactions through mobile. US Federal Reserve permitted ICICI to establish branch at New York and Frankfurt. • 2009: ICICI NRI Services wins Asian Banker Award for Excellence in Business Model Innovation • 2010: ICICI Bank announces Base Rate (“I-Base”) at 7. 50% p. a. Announced merger with Bank of Rajasthan with it through share-swap in a non-cash deal that values the Bank of Rajasthan at about Rs 3, 000 crore. The Monetary Authority of Singapore (MAS) has today granted Qualified Full Banking (QFB) privileges to ICICI Bank Singapore branch. Source: - ICICI bank website

Company Details ICICI Bank's equity shares are listed in India on – Bombay Stock Exchange – National Stock Exchange • American Depositary Receipts (ADRs) listed on the New York Stock Exchange (NYSE). • Branches 2016 , ATMs 5, 219 Employees 34, 596 • Presence in 18 countries including- - Branches in U. S, Singapore, Bahrain, Hong Kong - Subsidiaries in United Kingdom, Russia and Canada • Source: - ICICI bank website

ICICI BANK • Founded: - 1955 • Headquarters: - ICICI Bank Ltd. , ICICI Bank Towers, Bandra Kurla, Mumbai, India • Products: - Loans, Credit Cards, Savings, Investment vehicles, Insurance • Revenue ▲ USD 15. 06 billion

About ICICI BANK • ICICI Bank is India's largest private sector bank by market capitalisation and second largest overall in terms of assets. • The Bank also has a network of 1, 700+ branches and about 4, 721 ATMs in India and presence in 18 countries, as well as some 24 million customers. • ICICI Bank is also the largest issuer of credit cards in India

Service by icici bank • • Internet Banking Bill Pay Smart Money Order Prepaid Mobile Recharge Trade MIS Top Online Scams Salary ebook Online Bill Payment

History • 1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing mediumterm and long-term project financing to Indian businesses.

History • 2001: ICICI acquired Bank of Madura was a Chettiar bank and had acquired Chettinad Mercantile Bank and Illanji Bank in the 1960 s. • 2002: The Boards of Directors of ICICI and ICICI Bank approved the reverse merger of ICICI, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, into ICICI Bank.

HIstory • 2008: The US Federal Reserve permitted ICICI to convert its representative office in New York into a branch. • 2009: ICICI made huge changes in its organistion like elimination of loss making department and restreching outsourced staff or renegotiate their charges in consequent to the recession.

Peer Group Analysis

Icici bank standing in its peer group Company HDFC ICICI AXIS KOTAK MAHINDRA Market Capitalisation (in ` crores) 97, 771. 62 100, 937. 86 54, 806. 57 26, 885. 34 Revenue (in ` crores) 12, 194. 20 15, 592. 00 8, 950. 30 3, 255. 62 Source: - RBI Database RATIOS KOTAK KARUR VYSYA ICICI Bank MAHINDRA BANK LTD. 2008 2009 2008 2009 % % % % % Credit - Deposit Ratio 68. 09 69. 48 62. 94 69. 24 92. 30 99. 98 94. 69 106. 27 75. 07 68. 93 Investment - Deposit Ratio 38. 46 39. 47 49. 02 41. 19 45. 60 47. 20 55. 66 58. 23 28. 10 31. 23 BANKS -> AXIS BANK LIMITED HDFC BANK LTD. Ratio Of Net Interest Margin 2. 83 To Total Assets 2. 87 4. 66 4. 69 1. 96 2. 15 5. 08 5. 33 2. 66 2. 59 Return on Assets(in %) 1. 24 1. 44 1. 32 1. 28 1. 12 0. 98 1. 10 1. 03 1. 63 1. 49 Return On Equity 17. 60 19. 12 17. 74 17. 17 11. 63 7. 77 11. 19 7. 36 18. 49 18. 57 • • Ratio represent a strong foundation and aggressive growth strategy for ICICI is still out performed by Axis bank in most margins.

Icici bank standing in its peer group BANKS -> RATIOS Capital Adequacy Ratio Tier II Net NPA as % to net Advances KOTAK KARUR VYSYA MAHINDRA BANK LTD. 2008 2009 % % AXIS BANK LIMITED HDFC BANK LTD. 2008 % 2009 % 2008 % 10. 17 9. 26 10. 30 10. 58 11. 76 11. 84 14. 46 16. 13 12. 11 14. 40 3. 56 4. 43 3. 30 5. 11 2. 20 3. 69 4. 19 3. 88 0. 47 0. 52 0. 40 0. 47 0. 63 1. 55 2. 09 1. 78 2. 39 0. 18 0. 25 2009 % ICICI Bank 2008 % 2009 % Source: - RBI Database • • ICICI has high percentage of non-performing assets in its peers. For ICICI, CAR is higher than its closest competitors; Axis and HDFC bank.

Segmental Analysis

Geographical revenue Segmentation Index Domestic growth % (yoy) Foreign Growth% (yoy) Base year Revenue (INR Cr) 23211. 51 1404 2006(Base) 1 1 2007 1. 158 16 1. 444 44 2008 2. 466 113 1. 997 38 2009 1. 499 (39) 2. 776 39 2010 1. 237 (17) 3. 177 14 Source: - ICICI Annual Report Computed • • Revenue from has been increased to more than 3 times from 2006 to 2010 and is still growing at acceptable pace, however pace has gone down in 2010 There is negative growth in terms of domestic revenues and needs to take care upon domestic industry. Bo. R acquisition can help

Segmental Contribution in Revenue 0. 9 Retail Banking 0. 8 Wholesale Banking 0. 7 Consumer & Commercial Banking 0. 6 Treasury/ Investment banking 0. 5 Other Banking Business 0. 4 Total revenue from Banking Life Insurance 0. 3 General Insurance 0. 2 Insurance 0. 1 Venture Fund Management Others 0 FY 06 • • • FY 07 FY 08 FY 09 FY 10 In last years share of retail banking is shrinking due to inclusion of various other segments Venture fund management has added another revenue potential Total banking revenue has always ahead of other non banking revenue taking together(all insurance, Venture fund, others)

Segmental Growth in Revenue 2000% 0% FY 07 FY 08 FY 09 Retail Banking Wholesale Banking Consumer & Commercial Banking Treasury/ Investment banking Other Banking Business Total revenue from Banking FY 10 FY 07 FY 08 FY 09 FY 10 Retail Banking 94% 77% Wholesale Banking 99% 78% Consumer & Commercial Banking 154%Treasury/ Investment banking 191% 331% 101% 83% Other Banking Business 161% 77% Total revenue from Banking 162% 246% 101% 80% Life Insurance 115% 112% General Insurance 121% 107% Insurance 190%Venture Fund Management 53% Others 168% 1132% 119% 101% Source: - ICICI Annual Report Computed • • Retail band wholesale banking is growth segment and grown about 77% in 2010 Treasury and investment banking business is also increasing at the pace and due to growing market it is expected to grow in the same way Venture fund provided new dimension and its growth can be significant in further years Other are also growing at good pace but could not be identified

Segmental Contribution in PBT 1. 00 0. 80 Retail Banking (Consumer) 0. 60 Wholesale Banking (Commercial) 0. 40 Treasury/ Investment banking Other Banking Business 0. 20 Life Insurance General Insurance FY 08 (0. 20) FY 09 FY 10 Venture Fund Management Others (0. 40) (0. 60) • • Life insurance recovered from the losses and earned profits Contribution of wholesale banking is going down Retail banking earned negative figure which can be a concern as it form major par of revenues Treasury and investment banking can be a star product for the future

Segmental Growth in Profits Retail Banking (Consumer) Wholesale Banking (Commercial) Treasury/ Investment banking Other Banking Business Life Insurance General Insurance Venture Fund Management Others • • FY 09 5% 94% 405% 396% 57% 0% 95% FY 10 -2297% 107% 210% 127% -32% 58633% 37% 116% Negative profit of retail banking are very much disastrous as it is major revenue base Wholesale banking growth continued and forms major revenues which is strong point for the company General insurance growth is just base effect but growth chances are high Venture fund growth in PBT is less then in revenues which is around 55%

Segment Focus ICICI is focusing on SME under wholesale segment. Strategies & Initiatives: • SME enterprises CEO Knowledge Series- a platform to mentor and assist entrepreneurs. • SME Enterprises Toolkit- an online business & advisory resource for SME • Emerging India Awards- SME recognition platform • ICICI is also focusing on Rural Banking under retail segment. • Strategies & Initiatives: • Offering micro-credit through micro financing institutions(MFI’s), microinsurance and micro-investment products. • Financial inclusion through business correspondents, farmer financing and integration of agri-value chain. • •

New Segment and its impact • Venture capital Ø Contributing positive to revenues Ø Growth in revenue is as high as 57% Ø Growth in PBT however, is 37% only Ø Provide good growth as market is growing for the segment with the new industrial transformations and entrepreneurial age Future plans • • • Focus on stability and recovery of the segment with negative growth and profits Want to stabilize in both domestic as well as foreign segment as especially in foreign they had a huge impact of recession and hence stabilization is their strategy To harness the potential of current segments rather than hitting in dark

Financials and Trends Segmental Charts on the Basis of Business Retail Banking Whole sale Banking 3, 000 0 2, 500, 000 -0. 05 2, 000 3, 000 0% -5% 2, 500, 000 -10% 2, 000 -0. 1 1, 500, 000 -15% 1, 500, 000 -20% -0. 15 1, 000, 000 -0. 2 500, 000 0 -0. 25 Year 2008 Year 2009 Revenue in lakhs Year 2010 growth Source: - ICICI Annual Reports 08, 09, 10 • -25% 500, 000 -30% 0 -35% Year 2008 Year 2009 Revenue in lakhs Year 2010 growth Source: - ICICI Annual Reports 08, 09, 10 Earning in retail banking shows decline as well as in whole sale banking.

Financials and Trends Segmental Charts on the Basis of Business Treasury Other Banking Services 3, 100, 000 5% 3, 000 0% 2, 900, 000 2, 800, 000 -5% 0. 5 450, 000 0. 4 400, 000 0. 3 350, 000 0. 2 300, 000 2, 700, 000 -10% 2, 600, 000 0. 1 250, 000 0 200, 000 2, 500, 000 -15% 2, 400, 000 -20% 2, 300, 000 -0. 1 150, 000 -0. 2 100, 000 -0. 3 50, 000 2, 200, 000 -25% Year 2008 Year 2009 Revenue in lakhs Year 2010 growth Source: - ICICI Annual Reports 08, 09, 10 • 500, 000 0 -0. 4 Year 2008 Year 2009 Revenue in lakhs Year 2010 growth Source: - ICICI Annual Reports 08, 09, 10 Decline in treasury and other banking venture due to economic slowdown.

Financials and Trends Segmental Charts on the Basis of Geography 5, 850, 000 Domestic 0% 5, 750, 000 -1% 5, 650, 000 -2% 5, 550, 000 5, 450, 000 -3% 5, 350, 000 -4% Foreign 900, 000 200% 800, 000 150% 700, 000 600, 000 100% 500, 000 400, 000 50% 300, 000 200, 000 5, 250, 000 -5% 5, 150, 000 5, 050, 000 -6% 2008 2009 Revenue in lakhs growth 2010 Source: - ICICI Annual Reports 08, 09, 10 0% 100, 000 0 -50% 2008 2009 Revenue in lakhs 2010 growth Source: - ICICI Annual Reports 08, 09, 10 Foreign- emphasis was more on retail segment as ICICI strategy was to build more retail deposit franchise. Also was seeking to build stable wholesale funding. • Domestic- 1. emphasis was given to small and medium scale enterprises as it adopted cluster financing approach to fund small enterprises. 2. In retail loan segment emphasis was given more to Home loan and vehicle loan. •

Financials and Trends Dividend per Share & Earning Per Share Year EPS DPS 2006 28. 55 8. 5 2007 34. 59 10 2008 37. 37 11 2009 33. 76 11 2010 36. 10 12 Source: - ICICI Annual Report Computed • The earning per share and dividend paid out per share have shown steady rise. Represents strong earning potential and has a good image in the market.

“Banking stock show strong growth…” 155 150 145 ICICI bank, 7 -Sep-09, 105. 92: FM ensures stimulus package at G 20 summit on 5 th, GDP estimated at 7. 5%, world economics recovery was visible, FIIs made heavy purchases , market opens 50 pts up on 7 th. sensex up by 2. 1% ICICI up by 6%. This rise was visib ICICI bank, 27 -Oct-09, 112. 29: Monetary policy review; RBI hikes SLR by 1%, leaves key rates unchanged & tightens credit to the commercial property sector. RBI raised bank provisioning requirements for commercial real estate loans. index of bank stocks fe 140 ICICI bank, 31 -Mar-10, 127. 93 : Ministry of commerce and industry, announces crucial changes in FDI norms: banking to permit 49% FDI from 24% as earlier. ICICI bank, 19 -Aug-10, 135. 97: foreign funds bought equities worth a net Rs 674. 52 crore on Wednesday, 18 August 2010. Sensex on 52 week high ; ICICI up by 4. 38% crossed 1000 mark. ICICI bank, 27 -Jan-10, 106. 11: Negative global cues & sustained selling by FII pulled down the indices forcing unwinding of long positions. sensex down by 2. 9%, bankex by 4. 2% & ICICI by 4. 9% 29 -Jan-10, 111. 51 : Despite RBI tightening monetary policy by in 135 130 ICICI bank, 24 -Aug-10, 134. 39: RBI stalls change in FDI : Reserve Bank of India (RBI) asking the ministry to furnish a “rationale” for the amendments before they are notified under the Foreign Exchange Management Act. 125 120 115 110 105 ICICI bank, 4 -Nov-09, 111. 16 : ICICI bank qtr 2 result improved CASA ration strong growth estimated. stock price up by 5. 12% 100 95 1 -Sep-09 1 -Oct-09 1 -Nov-09 1 -Dec-09 1 -Jan-10 1 -Feb-10 ICICI bank, 13 -Aug-10, 130. 98: the amalgamation of Bank of Rajasthan Ltd. with ICICI Bank Ltd. with effect from August 13, 2010. The merger would substantially enhance the combined branch network to over 2500 across the country. ICICI bank, 18 -May-10, 119. 42: The Board of Directors of ICICI Bank Limited approved for the amalgamation of The Bank of Rajasthan Limited. ICICI dropped 7. 24% 1 -Mar-10 Bankex 1 -Apr-10 Sensex 1 -May-10 1 -Jun-10 1 -Jul-10 1 -Aug-10

Thank You Presented By: Group 4 Roll No 71 50 23 137 37 175 113 22 Name Ajay Garg Arun Thakur Ashish Shrivastava Goldi Gunjan Agarwal Pooja Shugani Ruchir Masand Yash Ahuja