ICICI Group: Strategy and Performance

November 2007

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

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9% 10.1% 10.0% Q1-2008 3.8% 10.0% 9.7% 7.1% 10.2% 7.0% 12.6% Of which: manufacturing Services Total 8.5% 9.3% Industrial growth has caught up with services growth Manufacturing growth at about 12% GDP growth expectations at over 8.3% 9.Robust economic growth GDP growth Agriculture Industry FY2005 0.5% 3 .4% FY2006 6.3% 11.6% 9.0% 8.7% 11.0% FY2007 2.4% 11.

Economic growth drivers Favourable demographics Knowledge capital Rising disposable income Investment Manufacturing Infrastructure International expansion Personal Consumption Housing Transportation Personal credit Investment and consumption cycles mutually re-enforcing 4 .

250)-Rs.Consumption drivers FY1996 Middle income High income 33 1 (households in million) FY2002 50 3 FY2010E 98 10 Rising affluence and growth of the consuming class NCAER data for top 24 cities in India shows migration to higher income levels growing at over 40% per annum Middle income: Rs. 500. 500.500) per household Source: NCAER 5 . 90.000 (US$ 12.000 (US$ 12.500) per household High income: > Rs.000 (US$ 2.

6 0.8 Supported by healthy corporate balance sheets 0.Investment drivers Capacity utilisation rates 100 90 80 70 60 50 40 30 20 10 0 High capacity utilisation and need for building infrastructure resulting in a large investment pipeline ar y rs g m en t O il Ca be pi n ee l St Ce ud hi p Te xt e & ile v % an ci lli d Fo o o D eb t/Eq uity Cr S Au t 2000-2004 2005-2006 1.2 1 0.2 0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 Source: CRIS INFAC. CMIE 6 .4 0.

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 over US$ 500 billion Internationalisation of Indian industry Potential for acquisition and trade finance Potential for credit and liability products and transaction services Vast Indian diaspora spanning the globe Low penetration of insurance and asset management 7 .

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

Our strategy Domestic Retail Banking Global Corporate and Investment Banking International Retail Banking Rural Banking Insurance & Asset Management Enhance share of retail deposits and sustain leadership position in credit franchise Leverage corporate relationships. structuring expertise. balance sheet and global syndication capability Leverage NRI opportunity and technology capabilities Invest for future growth Enhance and leverage market leadership position Shareholder value 9 .

Our retail banking platform Credit Leadership position with demonstrated Leadership position with demonstrated pricing power pricing power Full range of products distributed through inFull range of products distributed through inhouse 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 industry industry Low cost. transaction banking & distribution transaction banking & distribution Focus on cross sell of insurance and asset Focus on cross sell of insurance and asset management products management products Deposits Fee income 10 . cards. Diversified fee income streams: loans. cards. scalable technology architecture: only 10% of transactions occur at branches only 10% of transactions occur at branches Diversified fee income streams: loans. scalable technology architecture: Low cost.

Corporate & investment banking strategy Origination Leveraging domestic Leveraging domestic corporate relationships corporate relationships Project appraisal Project appraisal capabilities capabilities M&A advisory M&A advisory Structuring Structuring skills Structuring skills Balance sheet Balance sheet support –– support domestic and domestic and international international Syndication Global distribution Global distribution capability capability Focus on risk Focus on risk diversification and diversification and return optimization return optimization Combined with transaction banking and treasury products Involved in 88% of outbound Indian M&A financing deals in January-September 2007 Ranked #2 in offshore corporate syndicated loans in January-September 2007 11 .

South-East & North Asia Largest international balance sheet among Indian banks 12 . South-East & North Asia east. MiddleNorth America. South Africa. Market share of 28% in remittances into India of 28% in remittances into India Technology-driven direct banking platform in Technology-driven direct banking platform in UK and Canada UK and Canada Presence in 18 international locations Presence in 18 international locations International franchise snapshot International assets account for 22% of International assets account for 22% of consolidated banking assets consolidated banking assets Profitability with scale: ICICI Bank UK profit Profitability with scale: ICICI Bank UK profit after tax of US$ 36. Middleeast. Market share into India and in other corridors. Russia.0 mn in H1-2008 North America. UK.International banking Focus on fee and liability generation Focus on fee and liability generation International retail banking India linked products for NRIs. UK.0 mn in H1-2008 after tax of US$ 36. Europe. distribution of India linked products for NRIs. South Africa. distribution of third party investment products third party investment products Platform to capture large remittance flows Platform to capture large remittance flows into India and in other corridors. Russia. Europe.

commodity-based agri-businesses. partnerships & technology based channels partnerships & technology based channels Branches at major agricultural markets Branches at major agricultural markets Franchisees. internet kiosks. identified rural geography with branches. MFI & Franchisees. commodity-based financing and micro-credit financing and micro-credit Savings and investment products Savings and investment products Insurance Insurance Comprehensive channel strategy Comprehensive product strategy 13 . agri-businesses. customer segments: farmer financing. internet kiosks.Rural banking: investing for future growth Strategy to comprehensively cover an Strategy to comprehensively cover an identified rural geography with branches. MFI & corporate partners corporate partners Multi-product suite for catering to various Multi-product suite for catering to various customer segments: farmer financing.

Contents Opportunities Opportunities Strategy & Outlook Strategy & Outlook Key Subsidiaries Financial Highlights Financial Highlights 14 .

7% Ba j a j A l l i a nz 9.9% L IC 58. Source: IRDA Private sector market share of 25.32 bn (USD 5.0% H D FC Sta nd a rd 3.Life insurance: market share H1-20081 Rel i a nc e L i fe 2.2 bn) 1 Retail Weighted New Business Premiums.4% ICI CI L i fe 10.4% 15 .3% SBI L i fe 3.1% Others 12.6% Total market : Rs. 206.

3.7% Reflecting NBP margin of about 19.ICICI Life APE growth of 44.0% is equity equity Highlights Financial performance New Business Profit of Rs.27 bn.0% is Assets held Rs.47 bn in H1-2007 Reflecting NBP margin of about 19.7% in H1-2008 APE growth of 44.27 bn.32 bn in H1-2008 New Business Profit of Rs. 227.47 bn in H1-2007 compared to Rs.32 bn in H1-2008 compared to Rs. 4. 4. of which 66.7% in H1-2008 On a high base of 124% growth in H1-2007 On a high base of 124% growth in H1-2007 Assets held Rs. 227. of which 66. 3.7% 16 .

ICICI Life: rapid distribution ramp-up Mar 05 Locations Branches Advisors (‘000) Non agency share 74 107 57 30% Mar 06 132 177 72 37% Sept 07 551 735 243 37% Creating a nationwide agency network. complemented by increased focus on non-agency distribution 17 .

0.7% Overall market share at 12. PAT of Rs.81 bn in H1-2008 compared to Rs. Source: IRDA 18 . 0.33 bn in H1-2007 0.4%11 Overall market share at 12.7%11 share of 31.81 bn in H1-2008 compared to Rs. April 2007 – September 2007. 0.4% 18% increase in GWP in Q2-2008: Up from 9% 18% increase in GWP in Q2-2008: Up from 9% in Q1-2008 in Q1-2008 Non-corporate business at 58% of gross Non-corporate business at 58% of gross premium in Q2-2008 premium in Q2-2008 PAT of Rs.General insurance Market leadership Market leadership in private sector with market Market leadership in private sector with market share of 31.33 bn in H1-2007 Highlights Financial performance 1.

504.53 bn in H1-2008 compared to Rs. 504. 0.31 bn in H1-2007 Financial performance 1. 0.10 bn at Funds under management of Rs.000 in H1-2008 customers to reach 1.3 85.Asset management Market leadership Funds under management of Rs.000 in H1-2008 customers to reach 1.5% Highlights Customer base increased by more than Customer base increased by more than 85.53 bn in H1-2008 compared to Rs.5%11 Market share of 10. April 2007 – September 2007. 2007 Market share of 10. Source: AMFI 19 .10 bn at September 30.31 bn in H1-2007 0. 2007 September 30.3 million million PAT of Rs. PAT of Rs. 0.

Contents Opportunities Opportunities Strategy & Outlook Strategy & Outlook Key Subsidiaries Key Subsidiaries Financial Highlights 20 .

0% Q2-2007 7. bn) Deposits (Rs.03 17.154 2.058 53.21 2.283. bn) Capital adequacy ratio Net NPA ratio 31.2% 40.34 11.12 2.3% 0.7% 1.649.305.58 11.027 79.958.9% Q2-2008 10.85 2.6% 1.894.86 14.071.7% 1. Based on standalone Indian GAAP financials 21 . bn) Total assets (Rs.Key financial indicators1 FY2007 Net profit (Rs.07 3. bn) NII (Rs.297 1. bn) NIM (%) Fee/income (%) Advances (Rs.44 16.554.5% 1.1% 41. bn) Fee (Rs.55 13.66 2.2% 39.5% 45.2% 40.4% Growth 33% 34% 25% 33% 21% 29% - 1.99 2.8% 1.0% FY2007 (US$ mn) 715 1.285 11.03 1.86 2.446.38 50.10 56.10 3.823.0% 2.73 14.

1. 2007: Rs. 2007: Rs.649.310.14 bn Mortgages Other secured loans Unsecured loans . bank balances and govt.Diversified asset portfolio Total assets 30% 15% Retail advances 6% 36% 8% 11% 50% 35% 10% Sept 30. 3.44 bn Cash. rural and SME advances Other investments Fixed & other assets 22 Sept 30. securities Retail advances International advances Corporate.

The ICICI Group today Largest bank in India by market capitalisation and net worth Largest consumer credit provider Largest private sector life insurer Largest private sector general insurer Second largest asset management company Largest private equity & venture fund Leading investment banking and broking co. market cap of US$ 31bn 23 . Consolidated banking assets of US$ 100 bn.

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

Thank you 25 .

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