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ICICI Group

Performance and Strategy

February 2016

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 Bank’s 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

2

http://www.icicibank.com/

Significant progress in operating performance

Strong capital position

3

Substantial value creation within the ICICI Group

Strong retail franchise: leadership in technology



4



Excess Tier-1 ratio of 5.76% over the minimum requirement of

7.00% as per current RBI guidelines


5

Capital ratios significantly higher than regulatory requirements

Consolidated Basel III total capital

adequacy ratio at 16.75%, Tier 1 ratio

at 12.73% at December 31, 20151

December 31, 20151

Tier I

CA

R

16.74%

12.76%

Standalone capital

1. Basel III capital ratios include profits for the nine months ended December 31, 2015

Maintaining Tier-1 ratio at 10.00% indicates surplus capital of

about ₹ 160.00 billion at Dec 31, 2015

Potential positives

6

BCBS: Basel Committee on Banking Supervision

CRAR: Capital to risk weighted assets ratio

Treatment of deferred

tax assets (DTA)

Aligning RBI norms to BCBS

would increase Tier-1 capital by

~₹ 25.00 bn at Dec 31, 2015

ICICI Bank’s Tier-1 capital is composed almost entirely of core

equity capital; considerable headroom to raise additional Tier-1

capital



7



Performance over the years

Significant improvement in funding profile

• ~17% CAGR in CASA

deposits since Mar 2009

• Retail deposits as % of

domestic deposits increased

from ~50% at Mar 2009 to

~76% at Dec 2015

8


Healthy loan mix & growth

• ~ 17% CAGR in

domestic loans since

Mar 2011

• ~21% CAGR in retail

loans since Mar 2012

9

Given the challenges in the operating environment and the

Bank’s cautious approach to incremental lending in corporate

segment, annualised growth in domestic portfolio decreased

to 8.8% between March 2013 and March 2015 compared to

24.3% between March 2011 and March 2013


Growth driven by retail lending

10

Growth in domestic loans improved to 20.4% y-o-y at

December 31, 2015 from 17.0% y-o-y at September 30, 2015;

retail loan growth at 24.0%

Share of retail loans in total loans increased from 40.9% at

December 31, 2014 to 43.8% at December 31, 2015

14.9% y-o-y growth in corporate portfolio driven by lending

to higher rated corporates including public sector entities

Improvement in net interest margins


• Margin improvement driven by

focus across businesses

• Domestic margins improved by

~90 bps since FY2010

• Overseas margins improved

from 0.41% in FY2010 to 1.65%

in FY2015 and 1.94% in 9M-2016

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Overall NIM

Strong operating efficiency


12

Domestic cost-income Branch network

Costs contained while continuing scale up in distribution and

investments in technology

1

1. Cost-to-income ratio of 9M-2016 excludes ₹ 12.43 billion of profit on sale of 4% shareholding

in ICICI Life in Q3-2016


Improvement in return ratios

• About 90 bps improvement

in standalone RoA over

FY2009

• Consolidated RoE improved

from less than 8% in

FY2009 to 14.6% in 9M-

2016

13

NPA additions of ` 65.44 bn in Q3-2016; about 2/3rd on

account of cases highlighted by RBI in line with its objective of

early and conservative recognition of stress and provisioning

• Additional loans aggregating to a similar amount may slip

into NPA in Q4-2016 from the cases highlighted by RBI

NPA and restructuring trends

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Asset quality (1/3)

FY2014

Gross NPA additions (B) 45.40

` billion FY2015

80.78

Of which: slippages from

restructured loans (C) 7.27 45.29

Restructuring additions (A) 66.33 53.94

9M-2016

102.46

25.41

23.06

Net fresh additions (A+B-C) 104.46 89.43 100.11


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Asset quality (2/3)

Dec 31, 2014

Gross restructured loans (B) 131.05

` billion Dec 31, 2015

120.37

Total (A+B) 263.36 333.93

Gross non-performing assets (A) 132.31 213.56

Total as a % of gross customer assets 5.97% 6.58%


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Asset quality (3/3)

Dec 31, 2014

Net restructured loans (B) 120.52

` billion Dec 31, 2015

112.94

Total (A+B) 168.83 213.08

Net non-performing assets (A) 48.31 100.14

Total as a % of net customer assets 3.91% 4.31%



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ICICI Group

Savings

Investments

Capital

flows

Protection

Credit

Spanning the spectrum of financial services

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Life insurance

19

• Overall market share1 has improved from

7.2% in FY2014 to 11.3% in FY2015 and

12.1% in 9M-2016

•11.1% y-o-y growth in new business

premiums1 in 9M-2016 compared to 4.5%

y-o-y for industry

Strong growth

& improvement

in market share

1. Based on retail weighted received premium

• PAT of ` 12.47 billion in 9M-2016

• Return on equity of over 30%

Sustained &

strong

profitability

• AUM at ~` 1,017 billion at Dec 31, 2015 Growth in AUM

General insurance

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• Private sector market leadership

maintained

• Overall market share at 9.1%1 in 9M-2016

• Gross written premium grew by 19.2% y-

o-y in 9M-2016 compared to 12.9% y-o-y

growth for industry

Market

position

• PAT of ` 3.88 billion in 9M-2016

• Return on equity at ~16%

Strong

profitability

1. Based on gross written premium

2. Sale is subject to governmental and regulatory approvals

Other businesses

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• 2nd largest AMC in India

• PAT of ` 2.46 billion in 9M-2016; 29.5% y-

o-y increase

Asset

management

• Strong platforms for leveraging

favourable markets

• ICICI Securities PD: amongst the leaders

in Indian fixed income & money markets;

PAT of ` 1.84 billion in 9M-2016

• ICICI Securities: ~3.7 million customers;

PAT of ` 1.76 billion in 9M-2016

Securities &

primary

dealership

Strong franchise across segments

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Significant value in subsidiaries

Life & general

insurance

ICICI Bank Canada,

ICICI Bank UK and

ICICI HFC

ICICI AMC

ICICI Securities

Aggregate value of shareholding post

announced transactions at ~` 330 bn;

assuming retention of majority stake,

further pre-tax gains of ~₹ 70 bn

Second largest asset management

company in India

Largest online retail broking platform

Opportunity for reallocating capital



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Strong retail franchise

Healthy

growth in

fee

income

Sustained

growth in

granular

deposits

Robust

loan

portfolio

growth

Stable

asset

quality

trends

The Bank continues to scale up its retail business and

invest in strengthening the franchise and distribution

infrastructure

Leveraging digitization & mobility to strengthen

franchise & improve performance

Extensive geographical presence

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Significant investments made in distribution

~52% of branches in semi-

urban and rural areas

Supplemented by

13,372 ATMs

Branch network

Focus on cross-sell along

with customer service at

branches

Significant presence in rural & semi-urban markets

Network Technology

solutions

Branches

Gramin branches

BCs1 & CSPs

2

Aadhaar integration

for DBT1

Partner linkages

2,169 branches in rural & semi-urban markets

Focus on rural business (1/2)

Mobile based

remittance services

Bank on wheels &

micro ATMs

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1. BCs: Business correspondents

2. CSPs: Customer service points

Approach to

lending

Selective geographical

approach

Collateral based

lending

Granular portfolio

Diverse product suite & granular lending

Focus on growth to continue while monitoring risks

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Key products include loans against gold jewelry, farm

equipment loans, kisan credit card, agri term loans and

loans to Self Help Groups (SHG)

Portfolio contributes~14%

to retail loans

~25% y-o-y growth at

December 31, 2015

Focus on rural business (2/2)

Leadership in technology

Digitizing

channels

Digitizing

experience

Digitizing

core

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• One of the largest bouquets of

seamless services

• Online dashboard - ‘My View’

• Investment management & tax services

tools

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Digitizing channels (1/2)

Over 60% of total transactions for our savings account customers

done through new age digital channels

iMobile

• Integrated view of all ICICI Bank relationships

• About 140 services available

• Market leadership based on value of mobile

banking transactions

Refreshed & intuitive

website

30

Digitizing channels (2/2)

e-wallet for all -

whether customer

or not

•Significant interest from non-ICICI users

•Services available include shopping, bill

payments, booking movie tickets

•Linked prepaid card for POS

transactions

India’s First Digital Bank: 3.1 million downloads

Presence on social media

Innovative offerings to improve customer convenience

•Banking services available on Facebook and

Twitter

•Fan base of over 4.0 million on Facebook

•Highest among banks in India

Digitizing experience (1/2)

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India’s first bank to launch 24x7 fully automated branches

• 110 touch banking branches across

33 cities in India

• Over 1,750 self service kiosks at

other branches

• State of the art robotic

technology

• Hi-tech security system & multi-

level checks

• Example of ‘Make in India’:

~80% Indian components

Smart Vault: first-of-its-kind 24x7 locker facility

Digitizing experience (2/2)

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Debit & credit cards using near field communication

Contactless payments

Toll and transit solutions

• Transit Metro solutions

• Debit & credit cards with NFC metro smart card chip

• Auto-top up facility on low balance

• Easy recharge using SMS/internet

• Solutions for road transport

• Prepaid card with dual wallet (RFID1 chip & magnetic chip)

• Single card for bus ticket payments & retail purchases

• Electronic toll collection: prepaid RFID1 tags for vehicles

1. RFID: Radio-frequency identification

Digitizing core

Front office

• KYC through

scanned documents

• Demo videos for

products & services

• Upsell of mutual

funds & insurance

• Being introduced for

loan products

~3.4 million

savings accounts

sourced through

Tab banking

• Video banking app

• 24X7 face-to-face

banking

• Insta-banking

• Pre-processing of

transactions

• EFT cheques

• App-based cheque

issuance & image

based processing

• Image-based

processing of

documents

• OCR1 to reduce

data entry & error

rates

• Automated

processing

Mid office

Branch services

shifting to

customers’ mobiles

Back office

Digitizing

operations

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1. OCR: Optical Character Recognition

Looking ahead

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35

Way forward

Retail & rural business: sustain strong franchise and

performance

Continue to expand branch and ATM network

Focus on maintaining technology leadership

Drive operating efficiency & productivity across businesses

Maintaining robust growth in the retail portfolio while monitoring

risks

36

Way forward

Corporate business: selective approach to incremental business

Limits on single borrower/group exposures significantly lower

than the regulatory limit for lower rated companies/groups

Limits on project finance exposures

Growth in corporate loans (including international) to be limited

to about 10% y-o-y

Negative list of groups/ sponsors

Formation of separate credit administration group within

business; independent of relationship team

Key measures

Increase in proportion of higher rated exposures in portfolio

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In summary

Strong capital position supported by healthy operating

earnings

Significant value in subsidiaries; demonstrated with recent

transactions in insurance business

Key strengths

Growth to be driven by strong retail and rural franchise

Focus on resolution of corporate exposures and selective

fresh lending

Focus areas

Thank you

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