ICICI Group: Strategy & Performance

September 2011

Agenda
Strategy & execution Financial results: Q1-2012

Agenda
Strategy & execution Financial results: Q1-2012

Our strategic path

FY2010

FY2011

FY2012 onwards

Position the balance sheet for growth 4Cs: CASA, Costs, Credit Quality & Capital

Resume balance sheet growth

Accelerate growth On the back of improved liability structure & RoA Leverage capital to increase RoE

Further improve funding mix through retail term deposit growth Improve RoA: sharp reduction in provisions

Based on long-term economic growth outlook for the Indian economy

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Progress against strategy: funding profile

Improvement in funding profile
` in bn Savings deposits Current account deposits

June 30, 2009

444.59 195.18

June 30, 2011

668.58 297.79

CAGR 22.6% 23.5%

CASA ratio

30.4%

41.9%

Progress against strategy: asset quality

Strengthening asset quality
` in bn Provisions Provisions/Avg loans Unsecured retail / domestic loans Net NPA ratio Provisioning coverage Q1-2010 13.24 2.5% 10.2% 2.19% Q1-2012 4.54 0.8% 2.8% 0.91% Change -65.7%

51.2%

76.9%

Focus on derisking portfolio

ICICI Bank UK
Reduction

in investments in bonds/notes of financial institutions from about US$ 2.1 billion at June 30, 2009 to about US$ 640 million at June 30, 2011 No exposure to peripheral Europe
Credit derivative portfolio
Reduction

in credit derivative exposure (including off balance sheet exposure) from ` 54.05 bn at June 30, 2009 to ` 21.32 billion at June 30, 2011 Underlying comprises Indian corporate credits

Progress against strategy: efficiency improvements

Significant improvement in operating efficiency
` in bn Operating expenses Cost/income Cost/average assets FY2008 79.72 50.0% FY2011 65.38 41.9% Q1-2012 18.08 44.7%

2.2%

1.7%

1.7%

Despite significant scale up in branch network from 1,262 at March 2008 to 2,533 at June 2011

Key subsidiaries
Domestic subsidiaries
Insurance,

asset management & securities businesses impacted by regulatory changes and market conditions Continued focus on building franchise to capitalise on long-term opportunity Strong profit growth in life insurance business Overseas banking subsidiaries
Consolidation

strategy in view of regulatory approach Ongoing dialogue on future plan

Resulting in improvement in profitability

FY2009
Standalone RoA

FY2011 1.34% 9.6%

0.98% 7.7%

Standalone RoE
Consolidated RoE

7.8%

11.6%

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Well-placed to meet short-term challenges

Key challenges
Volatility

in global markets Domestic inflationary pressures and tightening monetary policy Issues relating to project execution

ICICI Banks position

Substantially

reduced exposure to international

markets Careful project selection in infrastructure sector Retail portfolio mainly comprises secured loans

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Asset quality profile (1/2)

Domestic corporate + overseas branches (49% of loan book)

Market concerns on infrastructure sector, especially power ICICI Banks power sector loans/total loans at 4.5% (power sector exposure/total exposure less than 7%) Careful project selection based on sponsor track record, fuel availability, offtake arrangement and tariff Sensitivity analysis indicates adequate DSCR under cases of substantially lower PLF and higher imported coal than originally assumed

SME (5% of loan book)

Relatively small portfolio size

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Asset quality profile (2/2)

Commercial Real Estate (CRE)

Portfolio comprises of developer financing, loans against property and balance sheet financing where part security/ takeout is from CRE Portfolio backed by cash flows from projects as well as adequate security cover Portfolio comprises largely of secured loans (66% mortgages)

Retail (37.5% of loan book)

Overall loan loss provisioning/ average loans at 84 bps in Q1-2012, including additional provisions due to changes in RBI norms

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Well capacitised for future growth

Diversified business lines Build up of branch network Strong capital base

Presence across all segments of financial services

Scale up to 2,533 branches at June 30, 2011 Largest branch network among private sector banks CAR of 19.6% with Tier 1 ratio of 13.4% at June 30, 2011

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Agenda
Strategy & execution Financial results: Q1-2012

15

Q4-2011: Profitability highlights

29.8% increase in profit after tax from ` 10.26 bn in Q12011 to ` 13.32 bn in Q1-2012 Net interest income increased by 21.1% year-on-year; Net interest margin at 2.6% Increase in fee income by 11.7% from ` 14.13 bn in Q12011 to ` 15.78 bn in Q1-2012 Provisions reduced by 43.1% from ` 7.98 bn in Q1-2011 to ` 4.54 bn in Q1-2012 52.8% increase in consolidated profit after tax from ` 10.91 bn in Q1-2011 to ` 16.67 bn in Q1-2012

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Composition of total loan book

June 30, 2011

Over seas b r an c h es 25. 3% Ru r al 8. 5%

Retail b u sin ess group 1 37. 5%

Do m estic c o r p o r ate 23. 7%

SME 5. 0%

Total loan book: ` 2,207 bn

1.
17

Retail business group includes builder loans and dealer funding

Composition of retail loan book

June 30, 2011
P e rso na l Cre d i t c a rd s l o a ns Othe r 3.2% se c ure d 2 . 4 % 2.5%

Ve hi c l e l o a ns 1 25.9% Ho me 66.0%

Total retail loan book: ` 827 bn

1.
18

Vehicle loans includes auto loans 9.4%, commercial business 16.5%

Asset quality and provisioning

(` billion)
June 30, 2010
Gross NPAs Less: Cumulative provisions Net NPAs Net NPA ratio 99.77 64.63 35.14 1.62%

Mar 31, 2011

101.14 76.55 24.59 0.94%

June 30, 2011

100.62 77.11 23.51 0.91%

Gross retail NPLs at ` 63.58 bn and net retail NPLs at ` 11.18 bn at June 30, 2011 Net restructured loans of ` 19.66 bn at June 30, 2011 Outstanding general provision on standard assets: ` 14.80 bn at June 30, 2011 Provisioning coverage ratio of 76.9% at June 30, 2011 computed in accordance with RBI guidelines

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Key ratios
Q12011 Q42011 Q12012

(Percent)
FY 2011

Return on average net worth1, 2 (Consolidated basis)

Return on average net worth 1, 2 Return on average assets2 Weighted avg EPS (`)2 Book value (`) Net interest margin2 Fee to income Cost to income Cost to average assets2 CASA ratio
1. 2.

8.6
7.9 1.15 36.9 474 2.5 38.7 40.0 1.6 42.1

11.5
10.7 1.44 51.1 478 2.7 43.3 44.3 1.8 45.1

12.0
9.6 1.29 46.5 490 2.6 39.0 44.7 1.7 41.9

11.6
9.6 1.34 45.3 478 2.6 41.2 41.9 1.7 45.1

Based on quarterly average net worth Annualised for all interim periods

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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

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Thank you

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Unconsolidated financials

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Profit & loss statement

(` billion)
Q12011 Net interest income Non-interest income 19.91 16.80 Q42011 25.10 16.41 Q12012 24.11 16.43 Q1-0-Q1 Growth 21.1% (2.2)% FY2011 90.17 66.48

- Fee income - Treasury income - Other income

Total income Operating expenses DMA expenses Lease depreciation Operating profit

14.13 1.04 1.63

36.71 14.25 0.36 0.22 21.88

17.91 (1.96) 0.46

41.51 17.89 0.45 0.12 23.05

15.78 (0.25) 0.90

40.54 17.74 0.34 0.12 22.34

11.7%
-

64.19 (2.15) 4.44

156.65 63.81 1.57 0.79 90.48

(44.8)%
10.4% 24.5% (5.6)% (45.5)% 2.1%

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Profit & loss statement

(` billion)
Q12011 Q42011 Q12012 Q1-0-Q1 Growth FY2011

Operating profit
Provisions Profit before tax

21.88
7.98 13.90

23.05
3.84 19.21

22.34
4.54 17.80

2.1%
(43.1)% 28.1%

90.48
22.87 67.61

Tax
Profit after tax

3.64
10.26

4.69
14.52

4.48
13.32

23.1%
29.8%

16.10
51.51

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Balance sheet: Assets

June 30, 2010 Cash & bank balances 304.45 March 31, 2011 340.90 June 30, 2011 348.94

(` billion)
Y-o-Y growth 14.6%

Investments

1,275.71

1,346.86

1,395.56

9.4%

- SLR investments - Equity investment in subsidiaries

702.20 122.00

641.42 124.53

725.35 124.53

3.3% 2.1%

- RIDF1 and related

Advances

103.49
1,843.78

150.80
2,163.66

149.51
2,206.93

44.5%
19.7%

Fixed & other assets

Total assets

216.03
3,639.97

210.92
4,062.34

200.72
4,152.15

(7.1)%
14.1%

Investment in security receipts of asset reconstruction companies was ` 27.56 bn at June 30, 2011 Credit derivative exposure (including off balance sheet exposure) of ` 21.32 bn at June 30, 2011 (underlying comprises Indian corporate credits)

Including impact of exchange rate movement 1. Rural Infrastructure Development Fund

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Equity investment in subsidiaries

June 30, 2010 ICICI Prudential Life Insurance ICICI Bank Canada ICICI Bank UK 35.93 33.50 23.25 March 31, 2011 35.93 33.50 23.25

(` billion)
June 30, 2011 35.93 33.50 23.25

ICICI Home Finance

ICICI Lombard General Insurance ICICI Bank Eurasia LLC

11.12
10.96 3.00

11.12
13.48 3.00

11.12
13.48 3.00

ICICI Securities Primary Dealership

ICICI Securities Limited ICICI AMC ICICI Venture Funds Mgmt

1.58
1.87 0.61 0.05

1.58
1.87 0.61 0.05

1.58
1.87 0.61 0.05

Others
Total

0.14
122.00

0.14
124.53

0.14
124.53

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Balance sheet: Liabilities

June 30, 2010 Net worth 528.23 March 31, 2011 550.91 June 30, 2011

(` billion)
Y-o-Y growth 6.9%

564.61

- Equity capital - Reserves

Deposits

11.16 517.07
2,009.13

11.52 539.39
2,256.02

11.52 553.09
2,306.78

3.2% 7.0%
14.8%

- Savings - Current
Borrowings1 Other liabilities Total liabilities
1.

565.46 280.72
949.97 152.64 3,639.97

668.69 347.78
1,095.54 159.86 4,062.34

668.58 297.77
1,140.51 140.25 4,152.15

18.2% 6.1%
20.1% (8.1)% 14.1%

Borrowings include preference shares amounting to ` 3.50 bn

Credit/deposit ratio of 75.5% on the domestic balance sheet at June 30, 2011

Including impact of exchange rate movement

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Composition of borrowings
(` billion)
June 30, 2010 Domestic - Capital instruments1 450.70 316.48 Mar 31, 2011 545.06 352.31 June 30, 2011 547.76 347.10

- Other borrowings
Overseas - Capital instruments - Other borrowings Total borrowings
1.

134.22
499.27 15.72 483.55 949.97

192.75
550.48 15.11 535.38 1,095.54

200.66
592.75 15.14 577.61 1,140.51

Includes preference share capital ` 3.50 bn

Capital instruments constitute 63.4% of domestic borrowings

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Capital adequacy (Basel II)

Basel II June 30, 2010 ` bn % March 31, 2011 ` bn % June 30, 2011 ` bn %

Total Capital
- Tier I

610.19 20.20%
422.97 14.00%

667.25
449.75

19.54%
13.17%

680.09 19.57%
464.35 13.36%

- Tier II
Risk weighted assets

187.22
3,020.37

6.20%

217.50
3,414.98 2,621.81 793.17

6.37%

215.74
3,474.84 2,656.02 818.82

6.21%

-On balance sheet -Off balance sheet

2,335.93 684.45

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Overseas subsidiaries

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ICICI Bank UK asset profile

March 31, 2011
Other a ssets & A sset b a c ked i nvestments sec uri ti es 6.1% 1.9% Bo nd s/no tes o f fi na nc i a l i nsti tuti o ns 10.6%
4 4

June 30, 2011

1

Ca sh & l i q ui d sec uri ti es 21.0%

Other a ssets & A sset b a c ked i nvestments sec uri ti es 6.0% 2.0% Bo nd s/no tes o f fi na nc i a l i nsti tuti o ns 10.7%
2

Ca sh & l i q ui d sec uri ti es 20.6%

I nd i a l i nked i nvestments 4.0%

`
L o a ns & 3 a d va nc es 56.4%

Ind i a l i nked i nvestments 3.3% Lo a ns & a d va nc es 57.4%

Total assets: USD 6.4 bn

1. 2.

Total assets: USD 6.0 bn

Includes cash & advances to banks, T Bills and CDs Includes India-linked credit derivatives of US$ 14 mn at June 30, 2011 (US$ 98 mn at March 31, 2011) 3. Includes securities re-classified to loans & advances 4. Does not include US$ 154 mn of ABS reclassified as loans & receivables in FY2009
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ICICI Bank UK liability profile

Synd i c a ted Other l o a ns & i nterb a nk l i a b i l i ti es 5.5% b o rro wi ng s 5.5% Lo ng term D eb t 13.0%

March 31, 2011

Net wo rth 10.6%

Synd i c a ted Other l o a ns & i nterb a nk l i a b i l i ti es 5.1% b o rro wi ng s 5.9% Lo ng term D eb t 14.1%

June 30, 2011

Net wo rth 11.6%

D ema nd d ep o si ts 15.3% T erm d ep o si ts 50.1%

D ema nd d ep o si ts 15.4% T erm d ep o si ts 47.9%

Total liabilities: USD 6.4 bn

Total liabilities: USD 6.0 bn

Profit after tax of US$ 5 mn in Q1-2012 as compared to US$ 9 mn in Q1-2011 Capital adequacy ratio at 25.4% Proportion of retail term deposits in total deposits at 76% at June 30, 2011
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ICICI Bank Canada asset profile

March 31, 2011
Fed era l l y l i nked i nsured i nvestments mo rtg a g e 1.8% 1 6.9% Ca sh & l i q ui d sec uri ti es 11.9%
2 I nd i a 2

June 30, 20113

India linke d inv e stme nts 1 Cash & liquid 0 .8 % se curitie s 1 1 .6 % Othe r asse ts & inv e stme nts 1 0 .5 % F e de rally 3 insure d mortgage 2 1 .5 %

Other a ssets & i nvestments 11.7% A sset b a c ked sec uri ti es 1.7% Lo a ns to c usto mers 66.0%

A sse t backe d se curitie s 1 .4 %

Loans to custome rs 5 4 .1 %

Total assets: CAD 4.5 bn

1.
2. 3.
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Total assets: CAD 5.1 bn

Includes cash & advances to banks and government securities Includes India-linked credit derivatives of CAD 29 million at June 30, 2011 (CAD 65 million at March 31, 2011) Based on IFRS, securitised portfolio of CAD 767 million considered as part of federally insured mortgage portfolio

ICICI Bank Canada liability profile

March 31, 2011
Net wo rth 21.8%
Bo rro wi ng s 1 16.6%

June 30, 20111

Other l i a b i l i ti es 1.9% Net wo rth 19.3%

Other l i a b i l i ti es 2.7% Bo rro wi ng s 1.7%

T erm d ep o si ts 58.2%
T erm d ep o si ts 48.1% D ema nd d ep o si ts 14.1%

D ema nd d ep o si ts 15.7%

Total liabilities: CAD 4.5 bn

1. 2.
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Total liabilities: CAD 5.1 bn

Profit after tax of CAD 12.3 mn in Q1-20122

Capital adequacy ratio at 28.5%2
As per IFRS, proceeds of CAD 769 million from sale of securitised portfolio considered as part of borrowings As per IFRS

ICICI Bank Eurasia asset profile

March 31, 2011
Other a ssets & i nvestments 2.3%

June 30, 2011

Oth er assets & in vestmen ts 1. 3%

Ca sh & c a sh eq ui va l ents 31.2%

Lo a ns to c o rp o ra tes & b a nks 38.0%

C ash & cash equ ivalen ts 38. 7%

Loan s to corporates & ban ks 39. 0%

P ro mi sso ry no tes 9.1%

Reta i l l o a ns 17.4%

Co rp o ra te b o nd s 2.0%

Promissory n otes 2. 9%

Total assets: USD 324 mn

1.
36

Total assets: USD 338 mn

Retail loan s 16. 0%

C orporate bon ds 2. 1%

Total borrowings of USD 180 mn at June 30, 2011 Capital adequacy of 30.5% at June 30, 2011 Net loss of USD 0.3 mn in Q1-2012
Includes cash & call placements with banks, balances with central bank and nostro balances

Domestic subsidiaries

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ICICI Home Finance

Investments and other assets 3.9%

March 31, 2011

Investments and other assets 5.2%

June 30, 2011

Loans 96.1%

Loans 94.8%

Total assets: ` 86.52 bn

Total assets: ` 81.65 bn

Profit after tax of ` 703.8 mn in Q1-2012 compared to ` 572.0 mn in Q1-2011 Capital adequacy ratio of 23.9% at June 30, 2011 Net NPA ratio: 1.3% At June 30, 2011 : Networth ` 13.63 bn; Deposits ` 16.29 bn and Borrowings ` 51.73 bn

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ICICI Life
Q1-2011
New business received premium Renewal premium Total premium Annualised premium equivalent (APE) New Business Profit (NBP) NBP margin Statutory profit/(loss) Assets Under Management 14.07 19.88 33.95 11.82 2.25 19.0% (1.16)1 595.47

(` billion) Q1-2012
8.24 18.07 26.31 4.45 0.71 16.0% 3.39 674.47

Expense ratio2

1. 2. 3.

21.1%

18.9%

Continued market leadership in private sector3

Does not include surplus on the non-participating policyholders funds of ` 2.35 billion Expense ratio: All expenses (including commission) / (Total premium 90% of Single Premium) On new business retail weighted received premium basis

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ICICI General
Q1-2011
Gross premium1 PAT 11.18 0.33

(` billion) Q1-2012
13.03 0.40

Continued market leadership in private sector

1. Excluding remittances from third party motor pool and including premium on reinsurance accepted

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Other subsidiaries
Profit after tax
ICICI Securities ICICI Securities Primary Dealership ICICI Venture ICICI Prudential Asset Management

Q1-2011
0.25 0.34 0.11 0.32

(` billion) Q1-2012
0.10 0.23 0.05 0.25

Consolidated profit after tax increased by 52.8% to ` 16.67 bn in Q1-2012 compared to ` 10.911 bn in Q1-2011 Consolidated return on average net worth for Q1-2012 at 12.0% compared to 8.6% in Q1-2011 (11.6% in FY2011)

1. Does not include surplus on the nonparticipating policyholders funds of ` 1.73 bn

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Thank you

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