About
ICICI Bank Ltd
ICICI Bank is India's largest private sector bank by consolidated assets. ICICI Bank Ltd was incorporated in the year 1994 as a part of the ICICI group with the name ICICI Banking Corporation Ltd. The initial equity capital was owned 75% by ICICI and 25% by SCICI Ltd, a diversified finance and shipping finance lender of which ICICI owned 19.9% at December 1996. Pursuant to the merger of SCICI into ICICI, ICICI Bank became a wholly-owned subsidiary of ICICI. In September 10, 1999, the name of the Bank was changed from ICICI Banking Corporation Ltd to ICICI Bank Ltd
In March 10, 2001, ICICI Bank acquired Bank of Madura, an old private sector bank, in an all-stock merger. ICICI Ltd along with their wholly owned retail finance subsidiaries, namely ICICI Capital Services Ltd and ICICI Personal Financial Services Ltd amalgamated with the Bank with effect from May 3, 2002.
In May 2003, the bank acquired the entire paid-up capital of Transamerica Apple Distribution Finance Pvt Ltd (now known as ICICI Distribution Finance Pvt Ltd) which primarily engaged in financing in the two-wheeler segment. In September 12, 2003, the Bank incorporated ICICI Bank Canada as a 100% subsidiary company.
In May 2005, the Bank acquired the entire paid-up capital of Investitsionno-Kreditny Bank, a Russian bank with their registered office in Balabanovo in the Kaluga region and a branch in Moscow. Thus, IKB became a subsidiary of Bank with effect from May 19, 2005.
In August 2005, the Bank acquired additional 6% of the equity share capital of Prudential ICICI Asset Management Company Ltd and Prudential ICICI Trust Ltd from Prudential Corporation Holdings Ltd and thus these two companies became the subsidiaries of the Bank. During the year 2006-07, ICICI Bank Canada incorporated ICICI Health Management Inc as a subsidiary company.
In April 2007, Sangli Bank Ltd merged with the Bank with effect from April 19, 2007. In 2007 June, the Bank entered into an agreement with networking solutions provider GTL Ltd to lease out their call centre facility at Mahape worth of around Rs 100 crore for a period of 25 years.
During the year 2007-08, the Bank increased their branches & extension counter from 755 Nos to 1,262 Nos, including the addition of about 200 branches through the merger of Sangli Bank. They increased their ATM network from 3,271 ATMs to 3,881 ATMs. They launched mobile banking service enabling a wide range of banking transactions using the mobile phone.
During the year 2008-09, the Bank increased their branches & extension counter from 1,262 Nos to 1,419 Nos. They also received licenses for 580 additional branches from RBI. They increased their ATM network to 4,713 ATMs from 3,881 ATMs. In April 22, 2009, ICICI Prudential Pension Funds Management Company Ltd was incorporated as a subsidiary company of ICICI Prudential Life Insurance Company Ltd.
During the year 2009-10, the Bank increased their branches & extension counter from 1,419 Nos to 1,707 Nos. They also increased their ATM network from 4,713 ATMs to 5,219 ATMs. ICICI Wealth Management Inc., a subsidiary of ICICI Bank Canada, has been dissolved effective December 31, 2009.
In January 2010, the Bank and First Data, a company engaged in electronic commerce and payment services, formed a merchant acquiring alliance and a new entity named ICICI Merchant Services, 81% owned by First Data, was formed, which acquired ICICI Bank's merchant acquiring operations for a total consideration of Rs. 3,744 million.
In May 2010, the Bank approved the scheme of amalgamation of Bank of Rajasthan Ltd with the Bank through share-swap in a non-cash deal that values the Bank of Rajasthan at about Rs 3,000 crore. Each 118 shares of Bank of Rajasthan will be converted into 25 shares of ICICI Bank Ltd. In August 2010, as per the scheme of amalgamation, Bank of Rajasthan was amalgamated with the Bank with effect from the close of business on 12 August 2010. The merger of Bank of Rajasthan added over 450 branches to the network. Including these, their branch network increased from 1,707 branches at March 31, 2010 to 2,529 branches at March 31, 2011. They also increased their ATM network from 5,219 ATMs at March 31, 2010 to 6,055 ATMs at March 31, 2011.
On 19 May 2011, ICICI Bank announced that the bank through its Dubai branch successfully priced an issuance of 5.5 year fixed rate notes in aggregate principal amount of US$ 1 billion. The offering had an order book of US$ 2.70 billion with strong interest from over 220 investors.
On 16 August 2012, ICICI Bank announced that the bank through its Dubai branch successfully priced an issuance of 5.5 year fixed rate notes in an aggregate principal amount of US$750 million. The offering was oversubscribed by 7.6 times and had an order book of US$ 5.7 billion.
On 26 November 2012, ICICI Bank through its Dubai branch successfully launched and priced a US$ 250 million tap of its US$ 750.0 million 4.70% 2018 notes originally issued in August 2012. The offering was oversubscribed by 5.6 times and had an order book of US$ 1.4 billion.
On 22 August 2013, ICICI Bank announced an increase of 0.25% in its base rate to 10% p.a. from 9.75% p.a. with effect from 23 August 2013. The bank also announced an increase of 0.25% in its benchmark prime-lending rate and in its Floating Reference Rate (FRR) for consumer loans (including home loans) with effect from 23 August 2013.
On 23 January 2014, ICICI Bank signed an agreement for a USD 200 million Line of Credit with The Export-Import Bank of Korea (Korea Eximbank).
The Board of Directors of ICICI Bank Limited at its meeting held on 9 September 2014 considered and approved the sub-division (split) of one equity share of the bank having a face value of Rs 10 into five equity shares of face value of Rs 2 each.
The Board of Directors of ICICI Bank at its meeting held on 5 December 2014 approved a proposal for the sale of ICICI Bank's shareholding in ICICI Bank Eurasia Limited Liability Company (IBEL), a non-material wholly-owned banking subsidiary in Russia, to Sovcombank, an unrelated third party Russian bank.
On 7 April 2015, ICICI Bank announced a reduction of 0.25% in its base rate to 9.75% p.a. from 10% with effect from 10 April 2015. Simultaneously, the bank announced a reduction in interest rates for some tenors of retail fixed deposits.
ICICI Bank announced a reduction of 0.05% in its base rate to 9.7% p.a. from 9.75% p.a. with effect from 26 June 2015. On 1 October 2015, ICICI Bank announced a reduction of 0.35% in its base rate to 9.35% p.a. from 9.7% p.a. with effect from 5 October 2015.
The Board of Directors of ICICI Bank at its meeting held on 30 October 2015 approved the sale of 9% shareholding in its subsidiary ICICI Lombard General Insurance Company to its joint venture partner, Fairfax Financial Holdings Limited. Upon completion of the transaction, ICICI Bank will hold approximately 64% stake and Fairfax will hold about 35% stake in ICICI Lombard General Insurance Company.
The Board of Directors of ICICI Bank at its meeting held on 16 November 2015 approved the sale of 6% shareholding in its subsidiary ICICI Prudential Life Insurance Company, comprising the sale of 4% to Premji Invest & its affiliates and 2% to Compassvale Investments Pte Ltd, an indirectly wholly-owned subsidiary of the Singapore-based investment company, Temasek. Upon completion of the transaction, ICICI Bank will hold approximately 68% stake in ICICI Prudential Life Insurance Company. Prudential Plc, ICICI Bank's joint venture partner, will maintain its current share of approximately 26%.
On 14 January 2016, ICICI Bank announced that it crossed the milestone of disbursing mortgage loans of over Rs 1 lakh crore, a first among private sector banks in the country.
On 14 March 2016, ICICI Bank through its Dubai branch priced an issuance of 10 year fixed rate notes of an aggregate principal amount of US$ 700 million. The notes carry a coupon of 4% and were offered at an issue price of 99.592.
On 18 July 2016, ICICI Bank announced that its subsidiary company ICICI Prudential Life Insurance Company has filed a draft red herring prospectus with the Securities and Exchange Board of India for a public offer of up to 18.13 crore equity shares, representing approximately 12.65% of its equity share capital, through an offer for sale by ICICI Bank.
9 September 2016, ICICI Bank announced that the bank has entered into a subscription agreement to acquire 10% shareholding in Resurgent Power Ventures Pte. Limited, a power platform created to facilitate investment in power projects in India by ICICI Group and Tata Group with Caisse de depot et placement du Quebec (CDPQ) of Canada, Kuwait Investment Authority and State General Reserve Fund of Oman as partner investors. On 2 January 2017, ICICI Bank announced a reduction of 0.7% in marginal cost of funds based lending rates (MCLR) with effect from 3 January 2017. On 2 March 2017, ICICI Bank through its Dubai branch priced an issuance of 5.5 year fixed rate notes for an aggregate principle amount of $300 million.
The Board of Directors of ICICI Bank at its meeting held on 3 May 2017 recommended issue of bonus shares in the ratio of 1:10. On 15 May 2017, ICICI Bank announced reduction of interest rates by upto 30 basis points for home loans upto Rs 30 lakh in its bid to boost affordable housing in the country.
On 5 June 2017, the Board of Directors of ICICI Bank approved the sale of a part of its shareholding in ICICI Lombard General Insurance Company in an initial public offering by ICICI Lombard General Insurance Company, subject to requisite approvals and market conditions. On 14 July 2017, ICICI Bank announced that its subsidiary company ICICI Lombard General Insurance Company Limited has filed a draft red herring prospectus with the Securities and Exchange Board of India for a public offer of up to 8.62 crore equity shares, representing approximately 19% of its equity share capital, through an offer for sale of up to 3.17 crore equity shares by ICICI Bank and up to 5.44 crore equity shares by FAL Corporation.
ICICI Bank announced a reduction in interest on Savings Bank account by 50 basis points to 3.5% from 4% with effect from 19 August 2017 on deposits below Rs 50 lakh. Interest rate on deposits of Rs 50 lakh and above was kept unchanged at 4%.
On 7 November 2017, the Board of Directors of ICICI Bank approved the sale of a part of its shareholding in ICICI Securities in an initial public offering by ICICI Securities, subject to requisite approvals and market conditions. On 15 December 2017, ICICI Bank announced that it is selling 6.44 crore shares of its subsidiary company ICICI Securities through IPO of ICICI Securities. In this regard, ICICI Securities Limited has filed a draft red herring prospectus with Securities and Exchange Board of India for a public offer of up to 6.44 equity shares of face value of Rs 5 each, representing approximately 20% of its equity share capital as on date.
On 7 December 2017, ICICI Bank through its Dubai branch priced an issuance of 10 year fixed rate notes for an aggregate principal amount of US$ 500 million. The notes carry a coupon of 3.8% and were offered at an issue price of 99.728.
The bank's consolidated total assets stood at US$ 156.8 billion as on 30 September 2017. The bank and their subsidiaries offer a wide range of banking and financial services including commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services. They offer through a variety of delivery channels and through their specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management.
ICICI Bank had a network of 4,856 branches and 13,792 ATMs as on 30 September 2017. ICICI Bank is present across 17 countries, including India. The bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and their American Depositary Receipts (ADRs) are listed on the New York Stock Exchange. The bank is the first Indian Bank listed on New York Stock Exchange.
During the fiscal 2018,the bank sold its stake of 7% in ICICI Lombard General Insurance Company Ltd and 20.78% stake in ICICI Securities Ltd through IPO.During the FY 2017-18,total assets for standalone entity increased by 13.9% from Rs 7717.91 billion at 31,March 2017 to Rs 8791.89 billion at 31,March 2018.Total advances increased by 10.4% from Rs 4642.32 billion at 31,March 2017 to Rs 5123.95 billion at 31,March 2018.
The consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from Rs 9857.25 billion at March 31, 2017 to Rs 11,242.81 billion at March 31, 2018.
As on 31,March 2018,the bank had a branch network of 4867 branches and ATM network of 14367 ATMs under its fold.
During the fiscal 2019,total assets for standalone entity has increased by 9.7% from Rs 8791.89 billion at 31,March 2018 to Rs 9644.59 billion at 31,March 2019.Total advances increased by 14.5% from Rs 5123.95 billion at 31,March 2018 to Rs 5866.47 billion at 31,March 2019 primarily due to an increase in domestic advances by 16.9%.
The consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from Rs 11,242.81 billion at March 31, 2018 to Rs 12,387.94 billion at March 31, 2019.
The bank had a branch network of 4874 branches and ATM network of 14987 ATMs as on 31,March 2019.
The bank has focussed on its strategic objective of risk calibrated profitable growth during the fiscal 2020.The core operating profit of the bank grew by 21.5% during the fiscal 2020.The Bank made progress on increasing the granularity of its portfolio and enhancing the customer franchise during the year. Retail loans as a proportion of total loans increased from 60.1% at March 31, 2019 to 63.2% at March 31, 2020.Including non-fund based outstanding, the proportion of retail portfolio increased from 46.9% at March 31, 2019 to 53.3% at March 31, 2020.
The Bank has repositioned its international franchise to focus on non-resident Indians for deposits, wealth and remittances businesses, with digital and process decongestion as a key enabler.
Total assets for standalone entity increased by 13.9% from Rs 9,644.59 billion at March 31, 2019 to Rs 10,983.65 billion at March 31, 2020.Total advances increased by 10.0% from Rs 5,866.47 billion at March 31, 2019 to Rs 6,452.90 billion at March 31, 2020 primarily due to an increase in domestic advances by 12.9%, offset, in part, by a decrease in overseas advances by 14.4%. The loan growth was impacted during the end of fiscal 2020 due to Covid-19 pandemic.
The consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from Rs12,387.94 billion at March 31, 2019 to Rs 13,772.92 billion at March 31, 2020.
The bank has added 1151 branches and ATMs during the fiscal 2020 and the total number of branches and ATMs as on 31,March 2020 has risen to 21012.
Total assets increased by 12.0% from Rs 10,983.65 billion at 31 March 2020 to Rs 12,304.33 billion at 31 March 2021. Total advances increased by 13.7% from Rs 6,452.90 billion at 31 March 2020 to Rs 7,337.29 billion at 31 March 2021 primarily due to an increase in domestic advances by 17.7%, offset, in part, by a decrease in overseas advances by 30.3%.
Total deposits increased by 21.0% from Rs 7,709.69 billion at 31 March 2020 to Rs 9,325.22 billion at 31 March 2021.Term deposits increased by 18.4% from Rs 4,231.51 billion at 31 March 2020 to Rs 5,008.99 billion at 31 March 2021.Current and savings account (CASA) deposits increased by 24.1% from Rs 3,478.19 billion at 31 March 2020 to Rs 4,316.23 billion at 31 March 2021.The Average CASA deposits increased by 18.9% from Rs 2,814.37 billion at fiscal 2020 to Rs 3,346.32 billion at fiscal 2021. The Borrowings decreased by 43.7% from Rs 1,628.97 billion at 31 March 2020 to Rs 916.31 billion at 31 March 2021.
The consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from Rs 13,772.92 billion at 31 March 2020 to Rs 15,738.12 billion at 31 March 2021.The Consolidated advances increased from Rs 7,062.46 billion at 31 March 2020 to Rs 7,918.01 billion at 31 March 2021.
On 15 August 2020,the bank has allotted 418,994,413 equity shares of face value Rs 2 each to eligible qualified institutional buyers at the issue price of Rs 358 per equity share including a premium of Rs 356 per share.
The Bank had a branch network of 5,266 branches and an ATM network of 14,136 ATMs at 31 March 2021.
The Bank had a network of 5,268 branches and 14,141 ATMs at 30 June 2021.
In accordance with the Scheme of Arrangement (Scheme) between ICICI Lombard General Insurance Company limited and Bharti AXA General Insurance Company limited as approved by Insurance Regulatory and Development Authority of India on 03 September 2021, assets and liabilities of Bharti AXA's general insurance business vested with ICICI General on the Appointed Date of 01 April 2020. IC1CI General issued two fully paid up equity shares of Rs 10 each to the shareholders of Bharti AXA forevery 115 fully paid up equity shares of Rs 10 each. Subsequent to issuance of equity shares to Bhani AXA shareholders,the bank's shareholding in ICICI Lombard General Insurance reduced to below 50%.
The Bank had a network of 5,277 branches and 14,045 ATMs at 30 September 2021.
The total deposits grew by 16% year-on-year to Rs 10,17,467 crore (USD 136.9 billion) as at 31 December 2021 and Average CASA ratio was 45% in Q3 of FY2022.Also domestic loan portfolio grew by 18% year-on-year during the Q3 of FY2022.
The Bank had a network of 5,298 branches and 13,846 ATMs at 31 December 2021.
ICICI Bank Ltd
Company History
ICICI Bank is India's largest private sector bank by consolidated assets. ICICI Bank Ltd was incorporated in the year 1994 as a part of the ICICI group with the name ICICI Banking Corporation Ltd. The initial equity capital was owned 75% by ICICI and 25% by SCICI Ltd, a diversified finance and shipping finance lender of which ICICI owned 19.9% at December 1996. Pursuant to the merger of SCICI into ICICI, ICICI Bank became a wholly-owned subsidiary of ICICI. In September 10, 1999, the name of the Bank was changed from ICICI Banking Corporation Ltd to ICICI Bank Ltd
In March 10, 2001, ICICI Bank acquired Bank of Madura, an old private sector bank, in an all-stock merger. ICICI Ltd along with their wholly owned retail finance subsidiaries, namely ICICI Capital Services Ltd and ICICI Personal Financial Services Ltd amalgamated with the Bank with effect from May 3, 2002.
In May 2003, the bank acquired the entire paid-up capital of Transamerica Apple Distribution Finance Pvt Ltd (now known as ICICI Distribution Finance Pvt Ltd) which primarily engaged in financing in the two-wheeler segment. In September 12, 2003, the Bank incorporated ICICI Bank Canada as a 100% subsidiary company.
In May 2005, the Bank acquired the entire paid-up capital of Investitsionno-Kreditny Bank, a Russian bank with their registered office in Balabanovo in the Kaluga region and a branch in Moscow. Thus, IKB became a subsidiary of Bank with effect from May 19, 2005.
In August 2005, the Bank acquired additional 6% of the equity share capital of Prudential ICICI Asset Management Company Ltd and Prudential ICICI Trust Ltd from Prudential Corporation Holdings Ltd and thus these two companies became the subsidiaries of the Bank. During the year 2006-07, ICICI Bank Canada incorporated ICICI Health Management Inc as a subsidiary company.
In April 2007, Sangli Bank Ltd merged with the Bank with effect from April 19, 2007. In 2007 June, the Bank entered into an agreement with networking solutions provider GTL Ltd to lease out their call centre facility at Mahape worth of around Rs 100 crore for a period of 25 years.
During the year 2007-08, the Bank increased their branches & extension counter from 755 Nos to 1,262 Nos, including the addition of about 200 branches through the merger of Sangli Bank. They increased their ATM network from 3,271 ATMs to 3,881 ATMs. They launched mobile banking service enabling a wide range of banking transactions using the mobile phone.
During the year 2008-09, the Bank increased their branches & extension counter from 1,262 Nos to 1,419 Nos. They also received licenses for 580 additional branches from RBI. They increased their ATM network to 4,713 ATMs from 3,881 ATMs. In April 22, 2009, ICICI Prudential Pension Funds Management Company Ltd was incorporated as a subsidiary company of ICICI Prudential Life Insurance Company Ltd.
During the year 2009-10, the Bank increased their branches & extension counter from 1,419 Nos to 1,707 Nos. They also increased their ATM network from 4,713 ATMs to 5,219 ATMs. ICICI Wealth Management Inc., a subsidiary of ICICI Bank Canada, has been dissolved effective December 31, 2009.
In January 2010, the Bank and First Data, a company engaged in electronic commerce and payment services, formed a merchant acquiring alliance and a new entity named ICICI Merchant Services, 81% owned by First Data, was formed, which acquired ICICI Bank's merchant acquiring operations for a total consideration of Rs. 3,744 million.
In May 2010, the Bank approved the scheme of amalgamation of Bank of Rajasthan Ltd with the Bank through share-swap in a non-cash deal that values the Bank of Rajasthan at about Rs 3,000 crore. Each 118 shares of Bank of Rajasthan will be converted into 25 shares of ICICI Bank Ltd. In August 2010, as per the scheme of amalgamation, Bank of Rajasthan was amalgamated with the Bank with effect from the close of business on 12 August 2010. The merger of Bank of Rajasthan added over 450 branches to the network. Including these, their branch network increased from 1,707 branches at March 31, 2010 to 2,529 branches at March 31, 2011. They also increased their ATM network from 5,219 ATMs at March 31, 2010 to 6,055 ATMs at March 31, 2011.
On 19 May 2011, ICICI Bank announced that the bank through its Dubai branch successfully priced an issuance of 5.5 year fixed rate notes in aggregate principal amount of US$ 1 billion. The offering had an order book of US$ 2.70 billion with strong interest from over 220 investors.
On 16 August 2012, ICICI Bank announced that the bank through its Dubai branch successfully priced an issuance of 5.5 year fixed rate notes in an aggregate principal amount of US$750 million. The offering was oversubscribed by 7.6 times and had an order book of US$ 5.7 billion.
On 26 November 2012, ICICI Bank through its Dubai branch successfully launched and priced a US$ 250 million tap of its US$ 750.0 million 4.70% 2018 notes originally issued in August 2012. The offering was oversubscribed by 5.6 times and had an order book of US$ 1.4 billion.
On 22 August 2013, ICICI Bank announced an increase of 0.25% in its base rate to 10% p.a. from 9.75% p.a. with effect from 23 August 2013. The bank also announced an increase of 0.25% in its benchmark prime-lending rate and in its Floating Reference Rate (FRR) for consumer loans (including home loans) with effect from 23 August 2013.
On 23 January 2014, ICICI Bank signed an agreement for a USD 200 million Line of Credit with The Export-Import Bank of Korea (Korea Eximbank).
The Board of Directors of ICICI Bank Limited at its meeting held on 9 September 2014 considered and approved the sub-division (split) of one equity share of the bank having a face value of Rs 10 into five equity shares of face value of Rs 2 each.
The Board of Directors of ICICI Bank at its meeting held on 5 December 2014 approved a proposal for the sale of ICICI Bank's shareholding in ICICI Bank Eurasia Limited Liability Company (IBEL), a non-material wholly-owned banking subsidiary in Russia, to Sovcombank, an unrelated third party Russian bank.
On 7 April 2015, ICICI Bank announced a reduction of 0.25% in its base rate to 9.75% p.a. from 10% with effect from 10 April 2015. Simultaneously, the bank announced a reduction in interest rates for some tenors of retail fixed deposits.
ICICI Bank announced a reduction of 0.05% in its base rate to 9.7% p.a. from 9.75% p.a. with effect from 26 June 2015. On 1 October 2015, ICICI Bank announced a reduction of 0.35% in its base rate to 9.35% p.a. from 9.7% p.a. with effect from 5 October 2015.
The Board of Directors of ICICI Bank at its meeting held on 30 October 2015 approved the sale of 9% shareholding in its subsidiary ICICI Lombard General Insurance Company to its joint venture partner, Fairfax Financial Holdings Limited. Upon completion of the transaction, ICICI Bank will hold approximately 64% stake and Fairfax will hold about 35% stake in ICICI Lombard General Insurance Company.
The Board of Directors of ICICI Bank at its meeting held on 16 November 2015 approved the sale of 6% shareholding in its subsidiary ICICI Prudential Life Insurance Company, comprising the sale of 4% to Premji Invest & its affiliates and 2% to Compassvale Investments Pte Ltd, an indirectly wholly-owned subsidiary of the Singapore-based investment company, Temasek. Upon completion of the transaction, ICICI Bank will hold approximately 68% stake in ICICI Prudential Life Insurance Company. Prudential Plc, ICICI Bank's joint venture partner, will maintain its current share of approximately 26%.
On 14 January 2016, ICICI Bank announced that it crossed the milestone of disbursing mortgage loans of over Rs 1 lakh crore, a first among private sector banks in the country.
On 14 March 2016, ICICI Bank through its Dubai branch priced an issuance of 10 year fixed rate notes of an aggregate principal amount of US$ 700 million. The notes carry a coupon of 4% and were offered at an issue price of 99.592.
On 18 July 2016, ICICI Bank announced that its subsidiary company ICICI Prudential Life Insurance Company has filed a draft red herring prospectus with the Securities and Exchange Board of India for a public offer of up to 18.13 crore equity shares, representing approximately 12.65% of its equity share capital, through an offer for sale by ICICI Bank.
9 September 2016, ICICI Bank announced that the bank has entered into a subscription agreement to acquire 10% shareholding in Resurgent Power Ventures Pte. Limited, a power platform created to facilitate investment in power projects in India by ICICI Group and Tata Group with Caisse de depot et placement du Quebec (CDPQ) of Canada, Kuwait Investment Authority and State General Reserve Fund of Oman as partner investors. On 2 January 2017, ICICI Bank announced a reduction of 0.7% in marginal cost of funds based lending rates (MCLR) with effect from 3 January 2017. On 2 March 2017, ICICI Bank through its Dubai branch priced an issuance of 5.5 year fixed rate notes for an aggregate principle amount of $300 million.
The Board of Directors of ICICI Bank at its meeting held on 3 May 2017 recommended issue of bonus shares in the ratio of 1:10. On 15 May 2017, ICICI Bank announced reduction of interest rates by upto 30 basis points for home loans upto Rs 30 lakh in its bid to boost affordable housing in the country.
On 5 June 2017, the Board of Directors of ICICI Bank approved the sale of a part of its shareholding in ICICI Lombard General Insurance Company in an initial public offering by ICICI Lombard General Insurance Company, subject to requisite approvals and market conditions. On 14 July 2017, ICICI Bank announced that its subsidiary company ICICI Lombard General Insurance Company Limited has filed a draft red herring prospectus with the Securities and Exchange Board of India for a public offer of up to 8.62 crore equity shares, representing approximately 19% of its equity share capital, through an offer for sale of up to 3.17 crore equity shares by ICICI Bank and up to 5.44 crore equity shares by FAL Corporation.
ICICI Bank announced a reduction in interest on Savings Bank account by 50 basis points to 3.5% from 4% with effect from 19 August 2017 on deposits below Rs 50 lakh. Interest rate on deposits of Rs 50 lakh and above was kept unchanged at 4%.
On 7 November 2017, the Board of Directors of ICICI Bank approved the sale of a part of its shareholding in ICICI Securities in an initial public offering by ICICI Securities, subject to requisite approvals and market conditions. On 15 December 2017, ICICI Bank announced that it is selling 6.44 crore shares of its subsidiary company ICICI Securities through IPO of ICICI Securities. In this regard, ICICI Securities Limited has filed a draft red herring prospectus with Securities and Exchange Board of India for a public offer of up to 6.44 equity shares of face value of Rs 5 each, representing approximately 20% of its equity share capital as on date.
On 7 December 2017, ICICI Bank through its Dubai branch priced an issuance of 10 year fixed rate notes for an aggregate principal amount of US$ 500 million. The notes carry a coupon of 3.8% and were offered at an issue price of 99.728.
The bank's consolidated total assets stood at US$ 156.8 billion as on 30 September 2017. The bank and their subsidiaries offer a wide range of banking and financial services including commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services. They offer through a variety of delivery channels and through their specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management.
ICICI Bank had a network of 4,856 branches and 13,792 ATMs as on 30 September 2017. ICICI Bank is present across 17 countries, including India. The bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and their American Depositary Receipts (ADRs) are listed on the New York Stock Exchange. The bank is the first Indian Bank listed on New York Stock Exchange.
During the fiscal 2018,the bank sold its stake of 7% in ICICI Lombard General Insurance Company Ltd and 20.78% stake in ICICI Securities Ltd through IPO.During the FY 2017-18,total assets for standalone entity increased by 13.9% from Rs 7717.91 billion at 31,March 2017 to Rs 8791.89 billion at 31,March 2018.Total advances increased by 10.4% from Rs 4642.32 billion at 31,March 2017 to Rs 5123.95 billion at 31,March 2018.
The consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from Rs 9857.25 billion at March 31, 2017 to Rs 11,242.81 billion at March 31, 2018.
As on 31,March 2018,the bank had a branch network of 4867 branches and ATM network of 14367 ATMs under its fold.
During the fiscal 2019,total assets for standalone entity has increased by 9.7% from Rs 8791.89 billion at 31,March 2018 to Rs 9644.59 billion at 31,March 2019.Total advances increased by 14.5% from Rs 5123.95 billion at 31,March 2018 to Rs 5866.47 billion at 31,March 2019 primarily due to an increase in domestic advances by 16.9%.
The consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from Rs 11,242.81 billion at March 31, 2018 to Rs 12,387.94 billion at March 31, 2019.
The bank had a branch network of 4874 branches and ATM network of 14987 ATMs as on 31,March 2019.
The bank has focussed on its strategic objective of risk calibrated profitable growth during the fiscal 2020.The core operating profit of the bank grew by 21.5% during the fiscal 2020.The Bank made progress on increasing the granularity of its portfolio and enhancing the customer franchise during the year. Retail loans as a proportion of total loans increased from 60.1% at March 31, 2019 to 63.2% at March 31, 2020.Including non-fund based outstanding, the proportion of retail portfolio increased from 46.9% at March 31, 2019 to 53.3% at March 31, 2020.
The Bank has repositioned its international franchise to focus on non-resident Indians for deposits, wealth and remittances businesses, with digital and process decongestion as a key enabler.
Total assets for standalone entity increased by 13.9% from Rs 9,644.59 billion at March 31, 2019 to Rs 10,983.65 billion at March 31, 2020.Total advances increased by 10.0% from Rs 5,866.47 billion at March 31, 2019 to Rs 6,452.90 billion at March 31, 2020 primarily due to an increase in domestic advances by 12.9%, offset, in part, by a decrease in overseas advances by 14.4%. The loan growth was impacted during the end of fiscal 2020 due to Covid-19 pandemic.
The consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from Rs12,387.94 billion at March 31, 2019 to Rs 13,772.92 billion at March 31, 2020.
The bank has added 1151 branches and ATMs during the fiscal 2020 and the total number of branches and ATMs as on 31,March 2020 has risen to 21012.
Total assets increased by 12.0% from Rs 10,983.65 billion at 31 March 2020 to Rs 12,304.33 billion at 31 March 2021. Total advances increased by 13.7% from Rs 6,452.90 billion at 31 March 2020 to Rs 7,337.29 billion at 31 March 2021 primarily due to an increase in domestic advances by 17.7%, offset, in part, by a decrease in overseas advances by 30.3%.
Total deposits increased by 21.0% from Rs 7,709.69 billion at 31 March 2020 to Rs 9,325.22 billion at 31 March 2021.Term deposits increased by 18.4% from Rs 4,231.51 billion at 31 March 2020 to Rs 5,008.99 billion at 31 March 2021.Current and savings account (CASA) deposits increased by 24.1% from Rs 3,478.19 billion at 31 March 2020 to Rs 4,316.23 billion at 31 March 2021.The Average CASA deposits increased by 18.9% from Rs 2,814.37 billion at fiscal 2020 to Rs 3,346.32 billion at fiscal 2021. The Borrowings decreased by 43.7% from Rs 1,628.97 billion at 31 March 2020 to Rs 916.31 billion at 31 March 2021.
The consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from Rs 13,772.92 billion at 31 March 2020 to Rs 15,738.12 billion at 31 March 2021.The Consolidated advances increased from Rs 7,062.46 billion at 31 March 2020 to Rs 7,918.01 billion at 31 March 2021.
On 15 August 2020,the bank has allotted 418,994,413 equity shares of face value Rs 2 each to eligible qualified institutional buyers at the issue price of Rs 358 per equity share including a premium of Rs 356 per share.
The Bank had a branch network of 5,266 branches and an ATM network of 14,136 ATMs at 31 March 2021.
The Bank had a network of 5,268 branches and 14,141 ATMs at 30 June 2021.
In accordance with the Scheme of Arrangement (Scheme) between ICICI Lombard General Insurance Company limited and Bharti AXA General Insurance Company limited as approved by Insurance Regulatory and Development Authority of India on 03 September 2021, assets and liabilities of Bharti AXA's general insurance business vested with ICICI General on the Appointed Date of 01 April 2020. IC1CI General issued two fully paid up equity shares of Rs 10 each to the shareholders of Bharti AXA forevery 115 fully paid up equity shares of Rs 10 each. Subsequent to issuance of equity shares to Bhani AXA shareholders,the bank's shareholding in ICICI Lombard General Insurance reduced to below 50%.
The Bank had a network of 5,277 branches and 14,045 ATMs at 30 September 2021.
The total deposits grew by 16% year-on-year to Rs 10,17,467 crore (USD 136.9 billion) as at 31 December 2021 and Average CASA ratio was 45% in Q3 of FY2022.Also domestic loan portfolio grew by 18% year-on-year during the Q3 of FY2022.
The Bank had a network of 5,298 branches and 13,846 ATMs at 31 December 2021.
ICICI Bank Ltd
Directors Reports
Your Directors have pleasure in presenting the Twenty-Seventh Annual
Report of ICICI Bank Limited (ICICI Bank/the Bank) along with the audited financial
statements for the year ended March 31,2021.
FINANCIAL HIGHLIGHTS
The financial performance for fiscal 2021 is summarised in the
following table:
Rs. in billion, except percentages |
Fiscal 2020 |
Fiscal 2021 |
% change |
Net interest income and non-interest income |
484.23 |
529.12 |
9.3% |
Operating expenses |
216.15 |
215.61 |
(0.2%) |
Core operating profit |
268.08 |
313.51 |
16.9% |
Treasury income |
12.93 |
50.46 |
290.3% |
Operating profit |
281.01 |
363.97 |
29.5% |
Provisions & contingencies (excluding tax) |
140.53 |
162.14 |
15.4% |
Profit before tax |
140.48 |
201.83 |
43.7% |
Profit after tax |
79.31 |
161.93 |
104.2% |
Rs. in billion, except percentages |
Fiscal 2020 |
Fiscal 2021 |
% change |
Consolidated profit before tax and minority interest |
185.89 |
260.28 |
40.0% |
Consolidated profit after tax and minority interest |
95.66 |
183.84 |
92.2% |
APPROPRIATIONS
The profit after tax of the Bank for fiscal 2021 is Rs. 161.93 billion
after provisions and contingencies of Rs. 202.04 billion (including provision for taxes of
Rs. 39.90 billion). The accumulated profit is Rs. 375.20 billion, taking into account the
balance of Rs. 213.27 billion brought forward from the previous year. Your Bank has a
consistent dividend payment history. Your Bank's dividend policy is based on the
profitability and key financial metrics, capital position and requirements and the
regulations pertaining to the payment of dividend. The Reserve Bank of India (RBI) through
its circular on 'Declaration of dividends by banks (Revised)' had directed that banks
shall not make any dividend payouts on equity shares from the profits pertaining to fiscal
2020. Accordingly, the Board of Directors did not recommend any dividend for fiscal 2020.
The Board of Directors has recommended a dividend of Rs. 2.00 per equity share for the
year ended March 31, 2021 and has appropriated the disposable profit as follows:
Rs. in billion |
Fiscal 2020 |
Fiscal 2021 |
To Statutory Reserve, making in all Rs. 297.69 billion |
19.83 |
40.48 |
To Special Reserve created and maintained in terms of Section
36(1) (viii) of the Income Tax Act, 1961, making in all Rs. 113.84 |
7.90 |
10.90 |
To Capital Reserve, making in all Rs. 133.80 billion |
3.96 |
1.30 |
To Investment Fluctuation Reserve, making in all Rs. 16.89
billion1 |
6.69 |
(2.49) |
To Revenue and other reserves, making in all Rs. 56.57
billion |
- |
14.922 |
Dividend paid on equity shares3 |
6.45 |
- |
Leaving balance to be carried forward to the next year |
213.28 |
310.09 |
1 Represents an amount transferred to Investment Fluctuation Reserve
(IFR) from disposable profit. As per the RBI guidelines, an amount not less than the lower
of net profit on sale of available-for-sale (AFS) and held-to-maturity (HFT) category
investments during the year or net profit for the year less mandatory appropriations is
required to be transferred to IFR, until the amount of IFR is at least 2% of the HFT and
AFS portfolio. The Bank can draw down balance available in IFR in excess of 2% of its AFS
and HFT portfolio. Accordingly, during fiscal 2021, the Bank has transferred an amount of
Rs. 2.49 billion from IFR to Balance in Profit & Loss Account.
2 Includes transfer of accumulated balance amounting to ' 0.08
billion maintained in Reserve Fund under Sri Lankan Banking Act No. 30 of 1988 to balance
in Profit & Loss account due to closure of the Branch.
3 Represent dividend declared for previous financial year and paid in
current financial year. RBI through its circular on 'Declaration of dividends by banks
(Revised)' had directed that banks shall not make any dividend payment on equity shares
from the profits pertaining to the financial year ended March 31, 2020. Accordingly, the
Bank did not declare any dividend for fiscal 2020.
The Bank prepares its financial statements in accordance with the
applicable accounting standards, RBI guidelines and other applicable laws/regulations.
RBI, under its risk- based supervision exercise, carries out the risk assessment of the
Bank on an annual basis. This assessment is initiated subsequent to the finalisation,
completion of audit and publication of audited financial statements for a financial year
and typically occurs a few months after the financial year-end. As a part of this
assessment, RBI separately reviews asset classification and provisioning of credit
facilities given by the Bank to its borrowers. The divergences, if any, in classification
or provisioning arising out of the supervisory process are given effect to in the
financial statements in subsequent periods after conclusion of the exercise.
In terms of the RBI circular no. DBR.BP!BC.No.32/21.04.018/ 2018-19
dated April 1,2019, banks are required to disclose the divergences in asset classification
and provisioning consequent to RBI's annual supervisory process in their notes to accounts
to the financial statements, wherever either
(a) the additional provisioning requirements assessed by RBI exceed 10%
of the reported net profits before provisions and contingencies or
(b) the additional gross NPAs identified by RBI exceed 15% of the
published incremental gross NPAs for the reference period, or both. Based on the condition
mentioned in RBI circular, no disclosure on divergence in asset classification and
provisioning for NPAs is required with respect to RBI's supervisory process for fiscal
2020.
SHARE CAPITAL
During the year under review, the Bank allotted 24,232,771 equity
shares of Rs. 2.00 each pursuant to exercise of stock options under the Employee Stock
Option Scheme.
On August 15, 2020, allotment of 418,994,413 equity shares of face
value Rs. 2.00 each was made to eligible qualified institutional buyers at the issue price
of Rs. 358.00 per equity share, i.e., at a premium of Rs. 356.00 per equity share.
For details refer to Schedule 1 of the financial statements.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Pursuant to Section 186(11) of the Companies Act, 2013, the provisions
of Section 186 of the Companies Act, 2013, except sub-section (1), do not apply to a loan
made, guarantee given or security provided by a banking company in the ordinary course of
business. The particulars of investments made by the Bank are disclosed in Schedule 8 of
the financial statements as per the applicable provisions of the Banking Regulation Act,
1949.
SUBSIDIARY, ASSOCIATE AND JOINT VENTURE COMPANIES
There is no change in the subsidiaries and associates of the Bank
during fiscal 2021. The Bank does not have any joint venture company. As at March 31,
2021, your Bank had following subsidiaries (16) and associate (8) Companies:
Name of the Subsidiary Company |
% of shares held |
ICICI Bank UK PLC |
100 |
ICICI Bank Canada |
100 |
ICICI Securities Limited |
75.00 |
ICICI Securities Holding Inc.1 |
100 |
ICICI Securities Inc.2 |
100 |
ICICI Securities Primary Dealership Limited |
100 |
ICICI Venture Funds Management Company Limited |
100 |
ICICI Home Finance Company Limited |
100 |
ICICI Trusteeship Services Limited |
100 |
ICICI Investment Management Company Limited |
100 |
ICICI International Limited |
100 |
ICICI Prudential Pension Funds Management Company Limited3 |
100 |
ICICI Prudential Life Insurance Company Limited |
51.37 |
ICICI Lombard General Insurance Company Limited |
51.88 |
ICICI Prudential Asset Management Company Limited |
51.00 |
ICICI Prudential Trust Limited |
50.80 |
1 ICICI Securities Holding Inc. is a wholly owned subsidiary o^ ICICI
Securities Limited.
2 ICICI Securities Inc. is a wholly owned subsidiary of ICICI
Securities Holding Inc.
3 ICICI Prudential Pension Funds Management Company Limited is a wholly
owned subsidiary of ICICI Prudential Life Insurance Company Limited.
Name of the Associate Company |
% of shares held |
I-Process Services (India) Private Limited |
19.00 |
NIIT Institute of Finance Banking and Insurance Training
Limited |
18.79 |
ICICI Merchant Services Private Limited |
19.01 |
India Infradebt Limited |
42.33 |
Arteria Technologies Private Limited |
19.98 |
Rajasthan Asset Management Company Private Limited# |
24.30 |
OTC Exchange of India Limited# |
20.00 |
Falcon Tyres Limited# |
26.39 |
# These companies are not considered as associates in the financial
statements, in accordance with the provisions of /4S 23 on 'Accounting for
Investments in Associates in Consolidated Financial Statements'.
HIGHLIGHTS OF PERFORMANCE OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE
COMPANIES AND THEIR CONTRIBUTION TO THE OVERALL PERFORMANCE OF THE COMPANY
The performance of subsidiaries and associates and their contribution
to the overall performance of the Bank as on March 31, 2021 is given in "Consolidated
Financial Statements of ICICI Bank Limited - Schedule 18 - Note 12 - Additional
information to consolidated accounts" of this Annual Report. A summary of key
financials of the Bank's subsidiaries is also given in "Statement Pursuant to Section
129 of Companies Act, 2013" of this Annual Report.
The highlights of the performance of key subsidiaries are given as a
part of Management's Discussion & Analysis under the section "Consolidated
financials as per Indian GAAP".
The Bank will make available separate audited financial statements of
the subsidiaries to any Member upon request. These documents/details will be available on
the Bank's website at https://www.ICICIbank.com/aboutus/ annual.html and will also be
available for inspection by any Member or trustee of the holder of any debentures of the
Bank. As required by Accounting Standard 21 (AS-21) issued by the Institute of Chartered
Accountants of India, the Bank's consolidated financial statements included in this Annual
Report incorporate the accounts of its subsidiaries and other consolidating entities.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY AND ITS FUTURE OPERATIONS
There are no significant and/or material orders passed by the
regulators or courts or tribunals impacting the going concern status or future operations
of the Bank.
UPDATE ON COVID-19
The COVID-19 pandemic has impacted most economies and banking systems
globally, including India. The nationwide lockdown in April-May 2020 substantially
impacted economic activity. The easing of lockdown measures subsequently led to gradual
improvement in economic activity and progress towards normalcy. For the banking sector,
these developments resulted in lower demand for loans and fee-based services and
regulatory measures like moratorium on payment of dues and standstill in asset
classification to mitigate the economic consequences on borrowers. It also resulted in
increase in provisioning reflecting higher actual and expected additions to nonperforming
loans following the cessation of moratorium and asset classification standstill. Pursuant
to the second wave of COVID-19 pandemic since March 2021, the number of new cases has
increased significantly across India in both urban and rural areas and it has resulted in
re-imposition of localised/regional lock-down measures in various parts of the country.
In these challenging times, the Bank's employees have shown strong
resilience and the ability to adapt to changing circumstances. The health and well-being
of employees and customers and business continuity is of utmost importance to the Bank.
The Bank formed a quick response team to take steps to protect the health of the employees
and provide essential services to the customers. About 97% of the branches were functional
with reduced working hours during the national lockdown in fiscal 2021. The branches were
staffed based on the customer footfalls and employees were rostered. Excluding the
employees working at the branches and some of the team members from Operations and IT, the
majority of the employees continue to work from home. The Bank continues to do a thorough
risk assessment for augmenting IT security controls and curb any gaps and potential
threats in the current working arrangement.
The Bank continues to see opportunities to grow and strengthen its
franchise and it is using these opportunities to further accelerate the digital journey of
the Bank and its customers. In March 2020, the Bank launched a comprehensive digital
banking platform called ICICI STACK which offers nearly 500 services to ensure
uninterrupted banking experience to retail, business banking, SME and corporate customers.
Other major digital initiatives include WhatsApp banking, Video KYC for digital onboarding
of customers, cardless cash withdrawal at ATMs and a mobile banking app, iMobile Pay, that
extends the mobile banking facility to non-ICICI Bank customers. We have launched digital
products like InstaBIZ and supply chain financing solutions for our small business
customers including APIs from the API Banking Portal to integrate various payment and
product solutions. Our digital offerings for large corporates and their ecosystems include
digital platforms for domestic and international trade and industry specific solutions
across the value chain. The Bank is seeing increased utilisation of its digital channels
and platforms by its customers and has ensured that the IT infrastructure is able to
handle any unexpected surge in digital transactions. The Bank continues to monitor the
situation in the country and would take necessary steps to ensure safety of its people and
continuity of its business operations. In its effort to support the nation in its fight
against the COVID-19 outbreak, the ICICI Group has committed a sum of Rs. 1.00 billion,
including Rs. 800.0 million to the PM Cares Fund. ICICI Bank and ICICI Foundation have
worked actively to assist various agencies including hospitals, the police, paramilitary
forces, municipalities and government bodies in their tireless efforts to safeguard the
citizens of the country.
Going forward, economic activity will depend on the trajectory of the
COVID-19 pandemic, the progress of the vaccination programme and the restrictions on
activity and the period for which they continue. A prolonged period of economic weakness
caused by the second wave of the pandemic and uncertainty regarding normalisation could
continue to impact banking sector loan growth, revenues, margins, asset quality and credit
costs in fiscal 2022. In view of the continuing uncertainties and rising risks in the
operating environment, the Bank would continue to focus on ensuring a resilient balance
sheet and maintaining strong capital levels. The Bank's capital and liquidity position is
strong and would continue to be a focus area for the Bank during this period.
MATERIAL CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE
BANK
There are no material changes and commitments affecting the financial
position of the Bank which have occurred between the end of the financial year of the Bank
to which the financial statements relate and the date of this Report. For the impact of
COVID-19 on the performance of the Bank and the Group, refer "note no. 59 of schedule
18 - Notes forming part of the accounts" of financial statements of the Bank and
"note no. 19 of schedule 18 - Notes forming part of the accounts" of
consolidated financial statements of the Bank.
DIRECTORS AND OTHER KEY MANAGERIAL PERSONNEL
Changes in the composition of the Board of Directors and other Key
Managerial Personnel
The Members at the last Annual General Meeting (AGM) held on August 14,
2020 approved the re-appointment of Vishakha Mulye as a wholetime Director (designated as
Executive Director) for a period of five years effective from January 19, 2021, subject to
the approval of Reserve Bank of India (RBI). RBI through its letter dated January 8, 2021
approved the re-appointment of Vishakha Mulye as Executive Director of the Bank for a
period of three years effective from January 19, 2021.
Further, the Members at the last AGM approved the re-appointment of
Girish Chandra Chaturvedi as an Independent Director of the Bank for a period of three
years effective from July 1, 2021. The Members also approved the re-appointment of Girish
Chandra Chaturvedi as Non-Executive (part-time) Chairman of the Bank for a period of three
years effective from July 1, 2021, subject to the approval of RBI. RBI through its letter
dated June 8, 2021 approved the re-appointment of Girish Chandra Chaturvedi as
Non-Executive (part-time) Chairman of the Bank for a period of three years with effect
from July 1,2021.
RBI through its letter dated December 22, 2020 communicated its
approval for the appointment of Sandeep Batra as Executive Director of the Bank for a
period of three years from the date of his taking charge as Executive Director. The Board
of Directors through a circular resolution dated December 23, 2020 recorded December 23,
2020 as the effective date of appointment and taking charge by Sandeep Batra as Executive
Director of the Bank.
The Board of Directors on April 24, 2021 based on the recommendation of
the Board Governance, Remuneration & Nomination Committee approved the re-appointment
of Anup Bagchi as a wholetime Director (designated as Executive Director) for a period of
five years or date of retirement, whichever is earlier, effective from February 1, 2022,
subject to the approval of Members and RBI. The re-appointment is being proposed in the
Notice of the forthcoming AGM through item no.10.
In terms of Section 203(1) of the Companies Act, 2013, Sandeep Bakhshi,
Managing Director & CEO, Anup Bagchi, Executive Director, Sandeep Batra, Executive
Director, Vishakha Mulye, Executive Director, Rakesh Jha, Chief Financial Officer and
Ranganath Athreya, Company Secretary are the Key Managerial Personnel of the Bank.
Declaration of Independence
All Independent Directors have given declarations that they meet the
criteria of independence as laid down under Section 149 of the Companies Act, 2013 as
amended (the Act) and Regulation 16 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, (SEBI Listing Regulations)
which have been relied on by the Bank and were placed at the Board Meeting held on April
24, 2021. In the opinion of the Board, the Independent Directors fulfil the conditions
specified in the Act and the SEBI Listing Regulations and are independent of the
Management.
Retirement by rotation
In terms of Section 152 of the Companies Act, 2013, Sandeep Bakhshi
would retire by rotation at the forthcoming AGM and is eligible for re-appointment.
Sandeep Bakhshi has offered himself for re-appointment.
AUDITORS
Statutory Auditors
M/s Walker Chandiok & Co LLP Chartered Accountants were
re-appointed as auditors by the Members at their Twenty-Sixth Annual General Meeting (AGM)
held on August 14, 2020 to hold office till conclusion of the Twenty-Seventh AGM. M/s
Walker Chandiok & Co LLP, Chartered Accountants, have been auditors of the Company for
three consecutive years, which is the maximum term for statutory auditors of banking
companies as per the circular issued by Reserve Bank of India (RBI) on 'Guidelines for
Appointment of Statutory Central Auditors (SCAs)/Statutory Auditors (SAs) of Commercial
Banks (excluding RRBs), UCBs and NBFCs (including HFCs)', dated April 27, 2021. Hence they
would be retiring at the conclusion of the forthcoming AGM. The Audit Committee and the
Board of Directors have placed on record their appreciation of the professional services
rendered by M/s Walker Chandiok & Co LLP during their association with the Company as
its auditors.
As per the above-mentioned RBI guideline, the statutory audit needs to
be conducted under joint audit of a minimum of two audit firms with effect from FY2022.
Accordingly, as recommended by the Audit Committee, the Board has proposed the appointment
of M/s MSKA & Associates, Chartered Accountants and M/s Khimji Kunverji & Co LLP,
Chartered Accountants as Joint Statutory Auditors for the year ending March 31, 2022
(fiscal 2022). Their appointment has been approved by RBI on July 8, 2021. The appointment
of the auditors is being proposed to the Members in the Notice of the forthcoming AGM
through item nos. 4 and 5.
There are no qualifications, reservation or adverse remarks made by the
current statutory auditors in the audit report.
Secretarial Auditors
The Board appointed M/s. Parikh Parekh & Associates, a firm of
Company Secretaries in Practice to undertake the Secretarial Audit of the Bank for fiscal
2021. The Secretarial Audit Report is annexed herewith as Annexure A. There are no
qualifications, reservation or adverse remark or disclaimer made by the auditor in the
report save and except disclaimer made by them in discharge of their professional
obligation.
The Annual Secretarial Compliance Report for fiscal 2021 is available
on the website of the Bank at www.ICICIbank.com and on the websites of the stock exchanges
i.e. BSE Limited at www.bseindia.com and National Stock Exchange of India Limited at
www.nseindia.com.
Maintenance of Cost Records
Being a Banking Company, the Bank is not required to maintain cost
records as specified by the Central Government under Section 148(1) of the Companies Act,
2013.
Reporting of Frauds by Auditors
During the year under review, there were no instances of fraud reported
by the statutory auditors, branch auditors and secretarial auditor under Section 143(12)
of the Companies Act, 2013 to the Audit Committee or the Board of Directors.
PERSONNEL
The statement containing particulars of employees as required under
Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given in an Annexure
and forms part of this report. In terms of Section 136(1) of the Companies Act, 2013, the
annual report and the financial statements are being sent to the Members excluding the
aforesaid Annexure. The Annexure is available for inspection and any Member interested in
obtaining a copy of the Annexure may write to the Company Secretary of the Bank.
INTERNAL CONTROL AND ITS ADEQUACY
The Bank has adequate internal controls and processes in place with
respect to its financial statements which provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements. These
controls and processes are driven through various policies, procedures and certifications.
The processes and controls are reviewed periodically. The Bank has a mechanism of testing
the controls at regular intervals for their design and operating effectiveness to
ascertain the reliability and authenticity of financial information.
DISCLOSURE UNDER FOREIGN EXCHANGE MANAGEMENT ACT, 1999
The Bank has obtained a certificate from its statutory auditors that it
is in compliance with the Foreign Exchange Management Act, 1999 provisions with respect to
investments made in its consolidated subsidiaries and associates during fiscal 2021.
RELATED PARTY TRANSACTIONS
The Bank has a Board-approved Group Arm's Length Policy which requires
transactions with the group companies to be at arm's length. All the related party
transactions between the Bank and its related parties, entered during the year ended March
31, 2021, were on arm's length basis and were in the ordinary course of business. There
were no related party transactions to be reported under section 188(1) of the Companies
Act 2013, in Form No. AOC-2, pursuant to Rule 8(2) of the Companies (Accounts) Rules,
2014.
All related party transactions as required under Accounting Standard
AS-18 are reported in note no. 50 of schedule 18 - Notes to Accounts of standalone
financial statements and note no. 2 of schedule 18 - Notes to Accounts of consolidated
financial statements of the Bank.
The Bank has a Board-approved policy on Related Party Transactions,
which has been disclosed on the website of the Bank and can be viewed at
(https://www.ICICIbank. com/aboutus/other-policies.page?#toptitle).
ANNUAL RETURN
The Annual Return in Form No. MGT-7 will be hosted on the website of
the Bank at (https://www.ICICIbank.com/ aboutus/annual.html).
BUSINESS RESPONSIBILITY REPORTING
The Business Responsibility Report as stipulated under Regulation 34 of
the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 will be hosted on the Bank's website at
(https://www.ICICIbank.com/aboutus/annual.html). Any Member interested in obtaining a copy
of the Report may write to the Company Secretary of the Bank.
The Bank has been releasing the Environmental, Social and Governance
Report since fiscal 2020. The report for fiscal 2021 will be hosted on the Bank's website
at (https://www.ICICIbank.com/aboutus/annual.html).
INTEGRATED REPORTING
The Bank has adopted the principles of the International Integrated
Reporting Framework as developed by the International Integrated Reporting Council (IIRC)
in its Annual Report since fiscal 2019. For accessing the Report for fiscal 2021, please
refer to the Integrated Report section of the Annual Report 2020-21.
RISK MANAGEMENT FRAMEWORK
The Bank's risk management framework is based on a clear understanding
of various risks, disciplined risk assessment and measurement procedures and continuous
monitoring. The Board of Directors has oversight on all the risks assumed by the Bank.
Specific Committees have been constituted to facilitate focused oversight of various
risks, as follows:
The Risk Committee of the Board inter alia reviews risk
management policies of the Bank pertaining to credit, market, liquidity, operational and
outsourcing risks and business continuity management. The Committee also reviews the Risk
Appetite and Enterprise Risk Management frameworks, Internal Capital Adequacy Assessment
Process (ICAAP) and stress testing. The stress testing framework includes a range of
Bank-specific market (systemic) and combined scenarios. The ICAAP exercise covers the
domestic and overseas operations of the Bank, banking subsidiaries and non-banking
subsidiaries. The Committee reviews setting up of limits on any industry or country,
migration to the advanced approaches under Basel II and implementation of Basel Ill and
the activities of the Asset Liability Management Committee. The Committee reviews the
level and direction of major risks pertaining to credit, market, liquidity, operationaI,
reputation, technology, information security, compliance, group and capital at risk as a
part of the risk dashboard. In addition, the Committee has oversight on risks of
subsidiaries covered under the Group Risk Management Framework. The Risk Committee also
reviews the Liquidity Contingency Plan for the Bank and the various thresholds set out in
the Plan.
The Credit Committee of the Board, apart from sanctioning credit
proposals based on the Bank's credit approval authorisation framework, reviews
developments in key industrial sectors (along with exposure to these sectors), the Bank's
exposure to large borrower accounts and borrower groups. The Credit Committee also reviews
major credit portfolios, non-performing loans, accounts under watch, overdues, incremental
sanctions etc.
The Audit Committee of the Board provides direction to and
monitors the quality of the internal audit function, oversees the financial reporting
process and also monitors compliance with inspection and audit reports of RBI, other
regulators and statutory auditors.
The Asset Liability Management Committee provides guidance for
management of liquidity of the overall Bank and management of interest rate risk in the
banking book within the broad parameters laid down by the Board of Directors/Risk
Committee.
Summaries of reviews conducted by these Committees are reported to the
Board on a regular basis.
Policies approved from time to time by the Board of
Directors/Committees of the Board form the governing framework for each type of risk. The
business activities are undertaken within this policy framework. Independent groups and
subgroups have been constituted across the Bank to facilitate independent evaluation,
monitoring and reporting of various risks. These groups function independently of the
business groups/subgroups.
The Bank has dedicated groups, namely, the Risk Management Group,
Compliance Group, Corporate Legal Group, Internal Audit Group and the Financial Crime
Prevention & Reputation Risk Management Group, with a mandate to identify, assess and
monitor all of the Bank's principal risks in accordance with well-defined policies and
procedures. The Risk Management Group is further organised into Credit Risk Management
Group, Market Risk Management Group, Operational Risk Management Group and Information
Security Group. The Chief Risk Officer (CRO) reports to the Risk Committee constituted by
the Board which reviews risk management policies of the Bank. The CRO for administrative
purposes reports to an Executive Director in the Bank. The above mentioned groups are
independent of all business operations and coordinate with representatives of the business
units to implement the Bank's risk management policies and methodologies.
The Internal Audit Group acts as an independent entity and is
responsible to evaluate and provide objective assurance on the effectiveness of internal
controls, risk management and governance processes within the Bank and suggest
improvements. The Internal Audit Group maintains appropriately qualified personnel to
fulfill its responsibilities. The Internal Audit and Compliance groups are responsible to
the Audit Committee of the Board.
INFORMATION REQUIRED UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013
The Bank has a policy against sexual harassment and a formal process
for dealing with complaints of harassment or discrimination. The said policy is in line
with the requirements of 'The Sexual Harassment of Women at the Workplace (Prevention,
Prohibition & Redressal) Act, 2013'. The Bank has complied with provisions relating to
the constitution of Internal Complaints Committee under the said Act.
Pursuant to the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, the details pertaining to
number of complaints during the year has been provided below:
a. number of complaints filed during the financial year: 33
b. number of complaints disposed of during the financial year: 33
c. number of complaints pending1 at end of the financial
year: Nil
1 All complaints received during fiscal 2021 have been closed within
the applicable turnaround time (90 days).