its all abt the icici bank investor

1. ICICI Group: Strategy and
Performance
April 2008

2. Contents
Opportunities
Strategy & Outlook
Strategy & Outlook
Key Subsidiaries
Key Subsidiaries
Financial Highlights
Financial Highlights
2

3. Robust economic growth
GDP growth FY2005 FY2006 FY2007 9M-2008
Agriculture 0.7% 6.0% 2.7% 3.5%
Industry 7.4% 8.0% 11.0% 9.1%
Of which: 8.1% 9.1% 12.3% 9.9%
manufacturing
Services 10.2% 10.3% 11.0% 10.4%
Total 7.5% 9.0% 9.4% 8.9%
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4. Economic growth drivers
Favourable Knowledge
demographics capital
Rising disposable
income
Investment Personal Consumption
Manufacturing Housing
Infrastructure Transportation
International Personal credit
expansion
Investment and consumption cycles mutually re-enforcing
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5. Consumption drivers
2000: Per capita
2000: Per capita 2007: Per capita
2007: Per capita 2015: Per capita
2015: Per capita
GDP US$ 500
GDP US$ 500 GDP US$ 1,000
GDP US$ 1,000 GDP US$ 1,500
GDP US$ 1,500
Middle and high
Middle and high Middle and high
Middle and high Middle and high
Middle and high
income
income 35% income 70% income
income income
population -- growth population -- growth population --
population population population
260 mn11
260 mn 350 mn11
350 mn 600 mn11
600 mn
From per capita GDP of US$ 1,000 to US$ 1,500:
consuming population to grow manifold
Middle income: Rs. 90,000 (US$ 2,250)-Rs. 500,000
(US$ 12,500) per household
High income: > Rs. 500,000 (US$ 12,500) per household
Source: NCAER
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6. Investment drivers
Capacity utilisation rates
100
90
80
High capacity utilisation
70
60
and need for building
50 infrastructure resulting
%
40
30
20
in a large investment
10
0
pipeline
g
rs
y
ile
t
il
l
v
ee
en
ar
n
O
be
Ca
pi
xt
St
lli
m
e
Debt/Equity
p
Te
&
ud
ci
Ce
hi
an
d
S
Cr
o
Fo
o
1.2
t
Au
2000-2004 2005-2006
1.0
0.8
Supported by healthy 0.6
corporate balance sheets 0.4
0.2
0.0
2 0 0 0 -0 1 2 0 0 1 -0 2 2 0 0 2 -0 3 2 0 0 3 -0 4 2 0 0 4 -0 5 2 0 0 5 -0 6 2 0 0 6 -0 7
Source: CRIS INFAC, CMIE
6

7. Opportunity spectrum for banks
Low penetration of consumer finance at 13% of GDP
Supported by structural drivers of rising income
levels and growing consuming class
Robust industrial and infrastructure investment
pipeline estimated at about US$ 700 billion
Internationalisation of Indian industry
Potential for acquisition and trade finance
Vast Indian diaspora spanning the globe
Potential for credit and liability products and
transaction services
Low penetration of insurance and asset
management
7

8. Contents
Opportunities
Opportunities
Strategy & Outlook
Key Subsidiaries
Key Subsidiaries
Financial Highlights
Financial Highlights
8

9. Our strategy
Enhance share of retail
Domestic Retail deposits and sustain leadership
Banking position in credit franchise
Leverage corporate
Shareholder value
Global Corporate
relationships, structuring
and Investment expertise, balance sheet and
Banking global syndication capability
International Retail Leverage NRI opportunity and
Banking technology capabilities
Rural Banking Invest for future growth
Insurance, Asset Enhance and leverage market
Mgmt & Broking leadership position
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10. Retail banking platform
Leadership position with demonstrated
Leadership position with demonstrated
pricing power
pricing power
Credit Full range of products distributed through in-
Full range of products distributed through in-
house network and external agent force
house network and external agent force
Centralized credit & operations
Centralized credit & operations
Superior deposit gathering franchise: highest
Superior deposit gathering franchise: highest
savings account deposit per branch in the
savings account deposit per branch in the
Deposits industry
industry
Current and savings account ratio at 27%
Current and savings account ratio at 27%
compared to 22% at March 31, 2007
compared to 22% at March 31, 2007
Diversified fee income streams: loans, cards,
Diversified fee income streams: loans, cards,
transaction banking & distribution
transaction banking & distribution
Fee income Focus on cross sell of insurance and asset
Focus on cross sell of insurance and asset
management products
management products
10

11. Corporate & investment banking strategy
Origination Structuring Syndication
Leveraging domestic
Leveraging domestic Structuring skills
Structuring skills Global distribution
Global distribution
corporate relationships
corporate relationships Balance sheet
Balance sheet capability
capability
Project appraisal
Project appraisal support ––
support Focus on risk
Focus on risk
capabilities
capabilities domestic and
domestic and diversification and
diversification and
M&A advisory
M&A advisory international
international return optimization
return optimization
Combined with transaction banking and treasury products
Involved in 88% of outbound Indian M&A financing deals
in CY2007
Ranked #1 in offshore corporate syndicated loans in
CY2007
11

12. International banking
Focus on fee and liability generation
Focus on fee and liability generation
Platform to capture large remittance flows
Platform to capture large remittance flows
into India and in other corridors; Market
into India and in other corridors; Market
International share of over 25% in remittances into India
share of over 25% in remittances into India
retail banking India linked products for NRIs; distribution
India linked products for NRIs; distribution
of third party investment products
of third party investment products
Technology-driven direct banking platform
Technology-driven direct banking platform
in UK and Canada
in UK and Canada
Presence in 19 international locations
Presence in 19 international locations
North America, UK, Europe, Russia,
North America, UK, Europe, Russia,
International Middle-East, South Africa, Asia
Middle-East, South Africa, Asia
International assets account for 23% of
International assets account for 23% of
franchise consolidated banking assets
snapshot consolidated banking assets
New branch opened in New York
New branch opened in New York
ICICI Bank UK: present in nine retail locations
ICICI Bank UK: present in nine retail locations
in UK and opened new branch in Frankfurt
in UK and opened new branch in Frankfurt
Largest international balance
sheet among Indian banks
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13. Rural banking: investing for future growth
Strategy to comprehensively cover an
Strategy to comprehensively cover an
identified rural geography with branches,
identified rural geography with branches,
Comprehensive partnerships & technology based channels
partnerships & technology based channels
channel strategy Branches at major agricultural markets
Branches at major agricultural markets
Franchisees, internet kiosks, MFI &
Franchisees, internet kiosks, MFI &
corporate partners
corporate partners
Multi-product suite for catering to various
Multi-product suite for catering to various
customer segments: farmer financing,
customer segments: farmer financing,
Comprehensive agri-businesses, commodity-based
agri-businesses, commodity-based
product strategy financing and micro-credit
financing and micro-credit
Savings and investment products
Savings and investment products
Insurance
Insurance
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14. Contents
Opportunities
Opportunities
Strategy & Outlook
Strategy & Outlook
Key Subsidiaries
Financial Highlights
Financial Highlights
14

15. Life insurance: market share
Bi rl a Sun Li fe Others 10.4% 11M-2008
3.0%
Rel i a nc e L i fe
3.6%
H D FC Sta nd a rd
4.3%
SBI Li fe 4.7%
LIC 50.3%
Ba j a j A l l i a nz
10.6%
I CI CI P rud enti a l
13.1%
Total mkt : Rs 432.16 bn (USD 10.8 bn)
Source: IRDA, weighted new business
premiums for individual business
15

16. ICICI Life: performance highlights
74% increase in new business weighted
74% increase in new business weighted
received premium during 9M-2008
received premium during 9M-2008
Business Compared to industry growth of 23%
Compared to industry growth of 23%
highlights
Assets held: Rs. 284.09 bn
Assets held: Rs. 284.09 bn
70% of assets in equity
70% of assets in equity
New Business Profit of Rs. 7.48 bn in 9M-
New Business Profit of Rs. 7.48 bn in 9M-
Financial 2008 compared to Rs. 5.40 bn in 9M-2007
performance 2008 compared to Rs. 5.40 bn in 9M-2007
Reflecting NBP margin of about 19.3%
Reflecting NBP margin of about 19.3%
16

17. ICICI Life: rapid distribution ramp-up
Mar 05 Mar 06 Dec 07
Locations 74 132 855
Branches 107 177 1,065
Advisors (‘000) 57 72 263
Non agency share 30% 37% 37%
Creating a nationwide agency network, complemented by
increased focus on non-agency distribution
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18. General insurance
Market leadership in private sector with market
Market leadership in private sector with market
Market
share of 31.6%11
share of 31.6%
leadership
Overall market share at 12.6%11
Overall market share at 12.6%
17% increase in premiums to Rs. 27.22 bn in
17% increase in premiums to Rs. 27.22 bn in
Business 9M-2008
9M-2008
Despite the impact of de-tariffication
Despite the impact of de-tariffication
Highlights Non-corporate business at 57% of gross
Non-corporate business at 57% of gross
premium in 9M-2008
premium in 9M-2008
Financial Profit after tax of Rs. 1.15 bn in 9M-2008
Profit after tax of Rs. 1.15 bn in 9M-2008
performance compared to Rs. 0.49 bn in 9M-2007
compared to Rs. 0.49 bn in 9M-2007
1. April 2007 – December 2007; Source: IRDA
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19. Securities business
India’s largest online trading platform with
India’s largest online trading platform with
Business about 1.4 million customers
about 1.4 million customers
Highlights Ranked first in terms of amount raised
Ranked first in terms of amount raised
through domestic offerings during CY2007
through domestic offerings during CY2007
Revenue of Rs. 2.57 bn in Q3-2008 and Rs.
Revenue of Rs. 2.57 bn in Q3-2008 and Rs.
Financial 5.27 bn in 9M-2008
5.27 bn in 9M-2008
performance Profit after tax of Rs. 710 mn in Q3-2008 and
Profit after tax of Rs. 710 mn in Q3-2008 and
Rs. 1,080 mn in 9M-2008
Rs. 1,080 mn in 9M-2008
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20. Asset management
Total FUM of Rs. 692.30 bn (including PMS &
Total FUM of Rs. 692.30 bn (including PMS &
advisory AUM) at December 31, 2007
advisory AUM) at December 31, 2007
ICICI
Prudential Market share of 10.3% in mutual fund assets
Market share of 10.3% in mutual fund assets
Asset at December 31, 2007
at December 31, 2007
Management
Profit after tax of Rs. 0.75 bn in 9M-2008 from
Profit after tax of Rs. 0.75 bn in 9M-2008 from
compared to Rs. 0.33 bn in 9M-2007
compared to Rs. 0.33 bn in 9M-2007
Largest private equity player in India with
Largest private equity player in India with
ICICI Venture funds under management of Rs. 96.34 bn
funds under management of Rs. 96.34 bn
Profit after tax of Rs. 0.52 bn in 9M-2008
Profit after tax of Rs. 0.52 bn in 9M-2008
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21. Contents
Opportunities
Opportunities
Strategy & Outlook
Strategy & Outlook
Key Subsidiaries
Key Subsidiaries
Financial Highlights
21

22. Key financial indicators1
FY2007 FY2007 Q3-2007 Growth
(US$ mn) Q3-2008
Net profit (Rs. bn) 31.10 789 9.10 12.30 35%
NII (Rs. bn) 56.37 1,430 14.85 19.60 32%
Fee (Rs. bn) 50.12 1,271 13.45 17.85 33%
NIM (%) 2.2% 2.2% 2.3% 2.3% -
Fee/income (%) 40.5% 40.5% 39.3% 41.2% -
Advances (Rs. bn) 1,958.66 49,687 1,727.63 2,155.17 25%
Deposits (Rs. bn) 2,305.10 58,475 1,968.93 2,297.79 17%
Total assets (Rs. bn) 3,446.58 87,432 2,958.32 3,767.00 27%
Capital adequacy 11.7% 11.7% 13.4% 15.8% -
ratio
Net NPA ratio 1.0% 1.0% 1.0% 1.5% -
1. Based on standalone Indian GAAP financials
2. US$ amounts represent convenience
translations at US$1= Rs. 39.42
22

23. The ICICI Group today
Largest private sector bank in India
Largest consumer credit provider
Largest private sector life insurer
Largest private sector general insurer
Leading asset management company
Largest private equity & venture fund
Leading securities and broking company
Consolidated banking assets of
US$ 106 bn; market cap of US$ 23bn
23

24. Except for the historical information contained herein, statements
in this Release which contain words or phrases such as 'will',
'would', ‘indicating’, ‘expected to’ etc., and similar expressions or
variations of such expressions may constitute 'forward-looking
statements'. These forward-looking statements involve a number
of risks, uncertainties and other factors that could cause actual
results to differ materially from those suggested by the forward-
looking statements. These risks and uncertainties include, but are
not limited to our ability to successfully implement our strategy,
future levels of non-performing loans, our growth and expansion
in business, the impact of any acquisitions, the adequacy of our
allowance for credit losses, technological implementation and
changes, the actual growth in demand for banking products and
services, investment income, cash flow projections, our exposure
to market risks as well as other risks detailed in the reports filed by
us with the United States Securities and Exchange Commission.
ICICI Bank undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date
thereof.
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25. Thank you
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