ICICI Group: Strategy & Performance

November 2011

Agenda
Recent developments Strategy & execution Financial results: Q2-2012

India: economic indicators

GDP
GDP growth moderating RBI revised growth estimate for FY2012 downwards to 7.6% from 8.0%

Industrial production
Growth in IIP at 4.1% in Aug 2011; Apr-Aug 2011 at 5.6% against 8.7% in Apr-Aug 2010

Exports
Exports growth in H1-2012 at 52.4% compared to 29.7% in H1-2011
Exports grew by 10.8% in Oct 2011

Corporate performance
Moderation in sales and net profits both on a y-o-y and sequential basis

Credit & deposits

Non-food credit growth maintained at about 20% yoy
Non-food credit growth at 18.9% y-o-y at Oct 21, 2011
21.2% at March 25, 2011 and 21.2% at Oct 22, 2010

Deposit growth improving; demand deposits lagging

Total deposits: 15.2% y-o-y increase at Oct 21, 2011
15.9% at March 25, 2011 & 17.4% at Oct 22, 2010

Demand deposits: decrease of 13.8% y-o-y at Oct 21, 2011

Monetary policy action

Repo rate increased by 25 bps to 8.50% on Oct 25, 2011 Policy stance
Maintaining an interest rate environment to contain inflation and anchor inflation expectations Stimulate investment activity to support raising the growth trend Manage liquidity to ensure it remains in moderate deficit

Inflation expected to moderate from December 2011 Low likelihood of rate action in December review FY2012 GDP growth projection revised downwards to 7.6%

Savings rate deregulation

Savings bank deposit interest rate deregulated
Uniform rate for deposits up to ` 100,000 Differential rates permitted for deposits above ` 100,000; same rate to be offered for same deposit amount

Some smaller banks have already increased their savings bank deposit rates

Agenda
Recent developments Strategy & execution Financial results: Q2-2012

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Our strategic path

FY2010
Position the balance sheet for growth 4Cs: CASA, Costs, Credit Quality & Capital

FY2011
Resume balance sheet growth Further improve funding mix through retail term deposit growth Improve RoA: sharp reduction in provisions

FY2012 onwards
Accelerate growth On the back of improved liability structure & RoA Leverage capital to increase RoE

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

8

Progress against strategy: funding profile

Improvement in funding profile
` in bn Savings deposits Current account deposits CASA ratio March 31, 2009 410.36 216.32 28.7% September 30, 2011 701.49 329.97 42.1% CAGR 23.9% 18.4%

Progress against strategy: asset quality

Strengthening asset quality
` in bn Provisions Provisions/Avg loans Unsecured retail / domestic loans Net NPA ratio Provisioning coverage Q2-2010 10.71 2.2% 8.9% 2.19% 51.1% Q2-2012 3.19 0.6% 2.3% 0.80% 78.2% Change -70.2%

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Focus on derisking portfolio

ICICI Bank UK Reduction in investments in bonds/notes of financial institutions from about US$ 2.2 bn at September 30, 2009 to about US$ 288 mn at September 30, 2011 No exposure to peripheral Europe in investment portfolio Credit derivative portfolio Reduction in credit derivative exposure (including off balance sheet exposure) from ` 54.08 bn at September 30, 2009 to ` 20.21 bn at September 30, 2011 Underlying comprises Indian corporate credits

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Progress against strategy: efficiency improvements

Significant improvement in operating efficiency
` in bn Operating expenses Cost/income Cost/average assets FY2008 79.72 50.0% 2.2% FY2011 65.38 41.9% 1.7% H1-2012 36.18 44.6% 1.8%

Despite significant scale up in branch network from 1,262 at March 2008 to 2,535 at September 2011

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Key subsidiaries
Domestic subsidiaries Insurance, asset management & securities businesses adjusting to 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

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Resulting in improvement in profitability

FY2009 Consolidated RoE Standalone RoA Standalone RoE FY2011 H1-2012

7.8% 0.98%

11.6% 1.34%

12.9% 1.35%

7.7%

9.6%

10.0%

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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 (53% of loan book)
Market concerns on infrastructure sector, especially power ICICI Banks power sector loans/total loans at 5.0% (power sector exposure/total exposure at 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 Relatively small portfolio size

SME (less than 5% of loan book)

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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 (67% mortgages)

Retail (35.0% of loan book)

Overall loan loss provisioning/ average loans at 68 bps in H1-2012

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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 2,535 branches at September 30, 2011 Largest branch network among private sector banks CAR of 19.0% with Tier 1 ratio of 13.1% at September 30, 2011

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Agenda
Recent developments Strategy & execution Financial results: Q2-2012

19

Q2-2012: Profitability highlights

21.6% increase in profit after tax from ` 12.36 bn in Q22011 to ` 15.03 bn in Q2-2012 Net interest income increased by 13.7% year-on-year; Net interest margin at 2.61% Increase in fee income by 6.9% from ` 15.90 bn in Q22011 to ` 17.00 bn in Q2-2012 Provisions reduced by 50.2% from ` 6.41 bn in Q2-2011 to ` 3.19 bn in Q2-2012 42.8% increase in consolidated profit after tax from ` 13.95 bn in Q2-2011 to ` 19.92 bn in Q2-2012

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Composition of total loan book

September 30, 2011

Overseas 2 bran ch es 28. 6%

Retail bu sin ess grou p 35. 0%

Ru ral 7. 5%

Domestic corporate 24. 2% S ME 4. 7%

Total loan book: ` 2,340 bn

1. 2.
21

Retail business group includes builder loans and dealer funding Including impact of exchange rate movement

Composition of retail loan book

September 30, 2011
P erso na l Cred i t Other l o a ns c a rd s sec ured 1.5% 3.1% 2.8%

Vehi c l e l o a ns 25.3% H o me 67.3%

Total retail loan book: ` 819 bn

1. September 30, 2011 :Vehicle loans includes auto loans 9.2%, commercial business 16.0%

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Asset quality and provisioning

(` billion)
September 30, 2010 Gross NPAs Less: Cumulative provisions Net NPAs Net NPA ratio 102.33 70.41 31.92 1.37% June 30, 2011 100.62 77.11 23.51 0.91% September 30, 2011 101.07 78.71 22.36 0.80%

Gross retail NPLs at ` 63.17 bn and net retail NPLs at ` 9.76 bn at September 30, 2011 Provisioning coverage ratio of 78.2% at September 30, 2011 computed in accordance with RBI guidelines Net restructured loans of ` 25.01 bn at September 30, 2011 Outstanding general provision on standard assets: ` 14.80 bn at September 30, 2011

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Key ratios
FY 2011 Return on average net worth1,2 (Consolidated basis) Return on average net worth1, 2 Return on average assets2 Weighted avg EPS (`)2 Book value (`) Net interest margin2 Fee to income Cost to income (incl. DMA) Cost to average assets (incl. DMA)2 CASA ratio
1. 2.
24

(Percent)
Q22011 10.7 9.2 1.30 43.3 470 2.62 42.4 41.0 1.6 44.0 H12011 9.7 8.5 1.22 40.2 470 2.57 40.6 40.5 1.6 44.0 Q12012 12.0 9.6 1.29 46.5 490 2.61 39.0 44.7 1.7 41.9 Q22012 13.7 10.4 1.41 51.9 509 2.61 40.2 44.4 1.8 42.1 H12012 12.9 10.0 1.35 49.2 509 2.61 39.6 44.6 1.8 42.1

11.6 9.6 1.34 45.3 478 2.64 41.2 41.9 1.7 45.1

Based on quarterly average net worth Annualised for all interim periods

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)
FY 2011 NII Non-interest income 90.17 66.48 Q22011 22.04 15.78 H12011 41.95 32.58 Q12012 24.11 16.43 Q22012 25.06 17.40 17.00 1.20 H12012 49.17 33.83 Q2-o-Q2 growth 13.7% 10.3%

- Fee income - Other income - Treasury income

Total income Operating expenses DMA expenses Lease depreciation Operating profit

64.19 4.44 (2.15)

156.65 63.81 1.57 0.79 90.48

15.90 1.32 (1.44)

37.82 15.00 0.35 0.35 22.12

30.03 2.95 (0.40)

74.53 29.26 0.71 0.56 44.00

15.78 0.90 (0.25)

40.54 17.74 0.34 0.12 22.34

32.78 2.10 (1.05)

83.00 36.18 0.70 0.24 45.88

6.9% (9.1%) (44.4%)

12.3% 22.9% 2.9% (65.7%) 6.4%

(0.80)
42.46 18.44 0.36 0.12 23.54

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Profit & loss statement

FY 2011 Operating profit Provisions Profit before tax Tax Profit after tax 90.48 22.87 67.61 16.10 51.51 Q22011 22.12 6.41 15.71 3.35 12.36 H12011 44.00 14.39 29.61 6.99 22.62 Q12012 22.34 4.54 17.80 4.48 13.32 Q22012 23.54 3.19 20.35 5.32 15.03 H12012 45.88 7.73 38.15 9.80 28.35

(` billion)
Q2-o-Q2 growth 6.4% (50.2%) 29.5% 58.8% 21.6%

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Balance sheet: Assets

September 30, 2010 Cash & bank balances Investments 348.48 1,362.75 June 30, 2011 348.94 1,395.56 September 30, 2011 361.79 1,476.85

(` billion)
Y-o-Y growth 3.8% 8.4%

- SLR investments - Equity investment in subsidiaries - RIDF1 and related

Advances2 Fixed & other assets Total assets2

696.82 122.00 134.47

1,942.01 246.74 3,899.98

725.35 124.53 149.51

2,206.93 200.72 4,152.15

760.73 124.53 162.66

2,339.52 229.09 4,407.25

9.2% 2.1% 21.0%

20.5% (7.2%) 13.0%

Investment in security receipts of asset reconstruction companies was ` 26.70 bn at September 30, 2011 Credit derivative exposure (including off balance sheet exposure) of ` 20.21 bn at September 30, 2011 (underlying comprises Indian corporate credits)
1. 2.
30

Rural Infrastructure Development Fund Including impact of exchange rate movement

Equity investment in subsidiaries

September 30, 2010 ICICI Prudential Life Insurance ICICI Bank Canada ICICI Bank UK ICICI Home Finance ICICI Lombard General Insurance ICICI Bank Eurasia LLC ICICI Securities Primary Dealership ICICI Securities Limited ICICI AMC ICICI Venture Funds Mgmt Others Total 35.93 33.50 23.25 11.12 10.96 3.00 1.58 1.87 0.61 0.05 0.14 122.00 June 30, 2011 35.93 33.50 23.25 11.12 13.48 3.00 1.58 1.87 0.61 0.05 0.14 124.53

(` billion)
September 30, 2011 35.93 33.50 23.25 11.12 13.48 3.00 1.58 1.87 0.61 0.05 0.14 124.53

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Balance sheet: Liabilities

September 30, 2010 Net worth 539.75 June 30, 2011 564.61

(` billion)
September 30, 2011 586.02 Y-o-Y growth 8.6%

- Equity capital - Reserves

Deposits

11.51 528.24
2,230.94

11.52 553.09
2,306.78

11.52 574.50
2,450.92

0.1% 8.8%
9.9%

- Savings - Current
Borrowings1,2 Other liabilities Total liabilities2
1. 2.

632.48 348.57
970.10 159.19 3,899.98

668.58 297.77
1,140.51 140.25 4,152.15

701.49 329.97
1,213.24 157.07 4,407.25

10.9% (5.3%)
25.1% (1.3)% 13.0%

Borrowings include preference shares amounting to ` 3.50 bn Including impact of exchange rate movement

Credit/deposit ratio of 72.3% on the domestic balance sheet at September 30, 2011
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Composition of borrowings
(` billion)
September 30, 2010 Domestic - Capital instruments1 - Other borrowings Overseas2 - Capital instruments - Other borrowings Total borrowings2
1. 2.

June 30, 2011 547.76 347.10 200.66 592.75 15.14 577.61 1,140.51

September 30, 2011 543.70 349.30 194.40 669.54 16.60 652.94 1,213.24

481.51 333.60 147.91 488.59 15.22 473.37 970.10

Includes preference share capital ` 3.50 bn Including impact of exchange rate movement

Capital instruments constitute 64.2% of domestic borrowings

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Capital adequacy (Basel II)

Basel II September 30, 2010 ` bn Total Capital - Tier I - Tier II Risk weighted assets 640.57 436.55 204.02 3,166.80 2,430.78 736.02 % 20.23% 13.79% 6.44% June 30, 2011 ` bn 680.09 464.35 215.74 3,474.84 2,656.02 818.82 % 19.57% 13.36% 6.21% September 30, 2011 ` bn 696.76 482.26 214.50 3,669.55 2,803.94 865.61 % 18.99% 13.14% 5.85%

-On balance sheet -Off balance sheet

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Overseas subsidiaries

35

ICICI Bank UK asset profile

June 30, 2011
Other a ssets & 4 A sset b ac 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

September 30, 2011

1

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

Other a ssets & Bo nd s/no tes o f 4 A sset b a c ked i nvestments fi na nc i a l sec uri ti es 7.0% i nsti tuti o ns 1.8% 5.6%
2

I nd i a l i nked i nvestments 3.9%

Ca sh & l i q ui d sec uri ti es 23.7%

Ind i a l i nked i nvestments 3.3% L o a ns & ad va nc es 57.4%

L o a ns & 3 a d va nc es 58.0%

Total assets: USD 6.0 bn

1. 2.

Total assets: USD 5.1 bn

Includes cash & advances to banks, T Bills and CDs Includes India-linked credit derivatives of US$ 14 mn at September 30, 2011 (US$ 14 mn at June 30, 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 & l i a b i l i ti es i nterb a nk 5.1% b o rro w i ng s 5.9% Lo ng term Deb t 14.1%

June 30, 2011

Net w o rth 11.6%

Synd i c a ted Other l o a ns & i nterb a nk l i a b i l i ti es 5.9% b o rro wi ng s 6.2% L o ng term d eb t 15.6%

September 30, 2011

Net w o rth 13.3%

Dema nd d ep o si ts 15.4% T erm d ep o si ts 47.9%

D ema nd d ep o si ts 16.4% T erm d ep o si ts 42.6%

Total liabilities: USD 6.0 bn

Total liabilities: USD 5.1 bn

Profit after tax of US$ 2.2 mn in Q2-2012 compared to US$ 8.4 mn in Q2-2011 Capital adequacy ratio at 29.8% Proportion of retail term deposits in total deposits at 71% at September 30, 2011
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ICICI Bank Canada asset profile

June 30, 2011
India linke d inv e st me nts 1 Cash & liquid 0 .8 % se curit ie s 1 1 .6 % Othe r asse t s & inv e st me nts 1 0 .5 % A sse t backe d se curitie s 1 .5 % Loans t o custome rs 5 2 .8 %
2

September 30, 2011

2 India linked

Insure d mort gage 2 2 .8 %

Cash & liquid securities 10.0%

investments 0.8%

Insur ed mor tgage 25.9%

Other assets & investments 10.0% Asset backed secur ities 1.4% Loans to customers 51.9%

Total assets: CAD 5.1 bn

1. 2. 3.

Total assets: CAD 5.1 bn

Includes cash & advances to banks and government securities Includes India-linked credit derivatives of CAD 32 million at September 30, 2011 (CAD 29 million at June 30, 2011) Based on IFRS, securitised portfolio of CAD 767 million and CAD 921 million considered as part of Insured mortgage portfolio at June 30, 2011 and September 30, 2011 respectively

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ICICI Bank Canada liability profile

June 30, 2011
Other l i a b i l i ti es 1.9% Bo rro wi ng s 16.6%
1

September 30, 2011

Ot he r liabilit ie s 3 .4 % Ne t w orth 1 9 .1 %

Net wo rth 19.3%

1

B orrow ings 1 9 .6 %

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

D e mand de posit s 1 4 .2 %

Te rm de posits 4 3 .7 %

Total liabilities: CAD 5.1 bn

Total liabilities: CAD 5.1 bn

Profit after tax of CAD 5.2 mn in Q2-2012 compared to CAD 12.3 mn in Q1-2012 Capital adequacy ratio at 29.3%
1. As per IFRS, proceeds of CAD 769 million and CAD 926 million from sale of securitised portfolio considered as part of borrowings at June 30, 2011 and September 30, 2011 respectively

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ICICI Bank Eurasia asset profile

June 30, 2011
Oth er assets & in vestmen ts 1. 3%

September 30, 2011

Oth er assets & in vestmen ts 1. 7%

1C ash

& cash equ ivalen ts 38. 7%

1 C ash

Loan s to c orporates & ban ks 39. 0%

& cash equ ivalen ts 35. 1%

Loan s to corporates & ban ks 38. 4%

Promissory n otes 2. 9%

Retail loan s 16. 0%

C orporate bon ds 2. 1%

Promissory n otes 4. 0%

Total assets: USD 338 mn

Total assets: USD 272 mn

Retail loan s 18. 6%

C orporate bon ds 2. 2%

Total borrowings of USD 172 mn at September 30, 2011 Capital adequacy of 30.6% at September 30, 2011 Net profit of USD 2.2 mn in Q2-2012
1.
40

Includes cash & call placements with banks, balances with central bank and nostro balances

Domestic subsidiaries

41

ICICI Home Finance

June 30, 2011
Investments and other assets 5.2%

Investments and other assets 4.5%

September 30, 2011

Loans 94.8%

Loans 95.5%

Total assets: ` 81.65 bn

Total assets: ` 76.50 bn

Profit after tax of ` 561.3 mn in Q2-2012 compared to ` 539.0 mn in Q2-2011 Capital adequacy ratio of 25.5% at September 30, 2011 Net NPA ratio: 1.3% At September 30, 2011: Networth ` 13.78 bn; Deposits ` 11.06 bn and Borrowings ` 51.65 bn

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ICICI Life
Q2-2011
New business received premium Renewal premium Total premium Annualised premium equivalent (APE) New Business Profit (NBP) NBP margin Statutory profit/(loss) Assets Under Management Expense ratio2 16.09 22.64 38.73 13.44 2.54 18.9% 0.151 654.84 19.4%

(` billion) Q2-2012 FY2011

10.96 23.11 34.07 7.36 1.18 16.0% 3.50 648.49 20.4% 78.62 100.19 178.81 39.75 7.13 17.9% 8.08 681.50 17.3%

Market share based on retail weighted received premium was 5.7%3 for April-August 2011
1. 2. 3.
43

Does not include surplus on the non-participating policyholders funds of ` 2.54 billion Expense ratio: All expenses (including commission) / (Total premium 90% of Single Premium) Source: IRDA

ICICI General
Q2-2011
Gross premium1 PAT 10.91 1.04

Q2-2012
13.06 0.56

(` billion) FY2011
44.08 (0.80)

Market share was 9.6%2 for April-August 2011

1. Excluding remittances from third party motor pool and including premium on reinsurance accepted 2. Source: IRDA

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

Q2-2011
0.29 (0.02) 0.22 0.14

Q2-2012
0.16 0.17 0.03 0.20

(` billion) FY2011
1.13 0.53 0.74 0.72

Consolidated profit after tax increased by 47.1% to ` 36.58 bn in H1-2012 from ` 24.861 bn in H1-2011
Consolidated profit after tax increased by 42.8% to ` 19.92 bn in Q22012 from ` 13.952 bn in Q2-2011

Consolidated return on average net worth for H1-2012 at 12.9% compared to 9.7% in H1-2011
Consolidated return on average net worth for Q2-2012 at 13.7% compared to 10.7% in Q2-2011 (11.6% in FY2011)
1. 2.
45

Does not include surplus on the non-participating policyholders funds of ` 3.61 bn Does not include surplus on the non-participating policyholders funds of ` 1.88 bn