2007 11 ICICI Bank Investor Presentation

8/8/2019 2007 11 ICICI Bank Investor Presentation

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ICICI Group: Strategy andPerformanceOctober 2007


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Contents

Strategy & Outlooktrategy & OutlookOpportunities

Financial Highlightsinancial Highlights


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Robust economic growthAgriculture

FY20050.7%

Industry 7.4%Of which:manufacturing 8.1%Services 10.2%

GDP growth

Industrial growth has caught up with services growthManufacturing growth at about 12%

GDP growth expectations at over 8.5%

Total 7.5%

FY20066.0%

8.0%

9.1%

10.3%

9.0%

FY20072.7%

11.0%

12.3%

11.0%

9.4%

Q1-20083.8%

10.6%

11.9%

10.6%

9.3%


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Economic growth driversFavourabledemographics

ManufacturingInfrastructure

Knowledgecapital

Internationalexpansion

Rising disposableincomeInvestment Personal Consumption

HousingTransportationPersonal credit

Investment and consumption cycles mutually re-enforcing


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Consumption driversFY1996 FY2002

Middle incomeHigh income

33 50

1 3

Households in the middle income bracket expected toincrease from 28% of total in 2002 to 46% in 2010 Share of population in deprived class to drop by morethan half by 2025 with more than 291 mn peopleexpected to rise out of poverty and enter middle class

FY2010E98

10

(households in million)

Middle income Rs. 90,000-500,000 per householdHigh income > Rs. 500,000 per householdSource: NCAER


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Investment driversHigh capacity utilisationand need for buildinginfrastructure resultingin a large investmentpipeline

Supported by healthycorporate balance sheets

Source: CRIS INFAC, CMIE

Capacity utilisation rates

0102030405060708090

100

Au toan

cil lia ry Car

sCem

ent

C rudeO

il

Food &

bevShip

ping S teel

Textile

%

2000-2004 2005-2006Debt/Equity

00.20.40.60.8

11.2

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06


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Opportunity spectrum for banks Low penetration of consumer finance at 13% of GDP

Supported by structural drivers of rising incomelevels and growing consuming class Robust industrial and infrastructure investmentpipeline estimated at over US$ 500 billion Internationalisation of Indian industry

Potential for acquisition and trade finance Vast Indian diaspora spanning the globe

Potential for credit and liability products andtransaction services Low penetration of insurance and asset

management


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Contents

Strategy & OutlookOpportunitiespportunities

Financial Highlightsinancial Highlights


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Our strategyDomestic RetailBanking

Enhance share of retaildeposits and sustain leadershipposition in credit franchiseGlobal Corporateand InvestmentBanking

Leverage corporaterelationships, structuringexpertise, balance sheet andglobal syndication capabilityInternational Retail

BankingLeverage NRI opportunity and

technology capabilitiesRural Banking Invest for future growth

Insurance & AssetManagement Enhance and leverage marketleadership position

Shehldevu


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Our retail banking platform Leadership position with demonstratedpricing power Full range of products distributed through in-house network and external agent force Centralized credit & operations

Leadership position with demonstratedpricing power Full range of products distributed through in-house network and external agent force Centralized credit & operations

Credit

Superior deposit gathering franchise: highestsavings account deposit per branch in theindustry Low cost, scalable technology architecture:only 10% of transactions occur at branches

Superior deposit gathering franchise: highestsavings account deposit per branch in theindustry Low cost, scalable technology architecture:only 10% of transactions occur at branches

Deposits

Diversified fee income streams: loans, cards,transaction banking & distribution

Focus on cross sell of insurance and assetmanagement products

Diversified fee income streams: loans, cards,transaction banking & distribution Focus on cross sell of insurance and assetmanagement productsFee income


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Corporate & investment banking strategyOrigination Structuring Syndication

Leveraging domesticcorporate relationships Project appraisalcapabilities M&A advisory

Leveraging domesticcorporate relationships Project appraisalcapabilities M&A advisory

Structuring skills Balance sheetsupport domestic andinternational

Structuring skills Balance sheetsupport domestic and

international

Global distributioncapability Focus on riskdiversification andreturn optimization

Global distributioncapability Focus on riskdiversification and

return optimizationCombined with transaction banking and treasury products Involved in 88% of outbound Indian M&A financing dealsin January-September 2007 Ranked #2 in offshore corporate syndicated loans inJanuary-September 2007


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Rural banking: Investing for future growth Strategy to comprehensively cover anidentified rural geography with branches,partnerships & technology based channels Branches at major agricultural markets Franchisees, internet kiosks, MFI &corporate partners

Strategy to comprehensively cover anidentified rural geography with branches,partnerships & technology based channels Branches at major agricultural markets Franchisees, internet kiosks, MFI &corporate partners

Comprehensivechannel strategy

Multi-product suite for catering to variouscustomer segments: farmer financing,agri-businesses, commodity-basedfinancing and micro-credit Savings and investment products Insurance

Multi-product suite for catering to variouscustomer segments: farmer financing,agri-businesses, commodity-basedfinancing and micro-credit Savings and investment products Insurance

Comprehensiveproduct strategy


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Life insurance

APE growth of 44.7% in H1-2008 On a high base of 124% growth in H1-2007

Assets held Rs. 224.83 bn, of which 66.5% isequity Increased branch network from 583 at March31, 2007 to 735 at September 30, 2007

APE growth of 44.7% in H1-2008 On a high base of 124% growth in H1-2007

Assets held Rs. 224.83 bn, of which 66.5% isequity Increased branch network from 583 at March31, 2007 to 735 at September 30, 2007

Market leadership in the private sector withretail market share of 26.2%1 Market share including LIC: 9.6%1 Market leadership in the private sector withretail market share of 26.2%1 Market share including LIC: 9.6%1

Highlights

Marketleadership

New Business Profit of Rs. 4.32 bn in H1-2008compared to Rs. 3.47 bn in H1-2007 Reflecting NBP margin of about 19.7%

New Business Profit of Rs. 4.32 bn in H1-2008compared to Rs. 3.47 bn in H1-2007 Reflecting NBP margin of about 19.7%

Financialperformance1. April 2007 - August 2007 on weighted received premium basis


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General insurance

18% increase in GWP in Q2-2008: Up from 9%in Q1-2008 Non-corporate business at 58% of grosspremium in Q2-2008

18% increase in GWP in Q2-2008: Up from 9%in Q1-2008 Non-corporate business at 58% of grosspremium in Q2-2008

Market leadership in private sector with marketshare of 31.6%1 Overall market share at 12.4%1

Market leadership in private sector with marketshare of 31.6%1 Overall market share at 12.4%1

Highlights

Marketleadership

Financialperformance PAT of Rs. 0.81 bn in H1-2008 compared to Rs.0.33 bn in H1-2007 PAT of Rs. 0.81 bn in H1-2008 compared to Rs.0.33 bn in H1-20071. April 2007 August 2007


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Asset management Funds under management of Rs. 504.10 bn at

September 30, 2007 Market share of 10.5% Funds under management of Rs. 504.10 bn at

September 30, 2007 Market share of 10.5%

Highlights

Marketleadership

Financialperformance

Customer base increased by more than 85,000 inH1-2008 customers to reach 1.3 million

Customer base increased by more than 85,000 inH1-2008 customers to reach 1.3 million

PAT of Rs. 0.53 bn in H1-2008 compared to Rs.0.31 bn in H1-2007

PAT of Rs. 0.53 bn in H1-2008 compared to Rs.0.31 bn in H1-2007


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Contents

Strategy & Outlooktrategy & OutlookOpportunitiespportunities

Financial Highlights


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Diversified asset portfolioTotal assets Retail advances

Sept 30, 2007: Rs. 3,649.44 bn Sept 30, 2007: Rs. 1,310.14 bn

50%35%

15%

MortgagesOther secured loansUnsecured l oans

36%

11%

8%

30%

10%

6%

Cash, bank balances and govt. securitiesRetail advancesInternational advancesCorporate, rural and SME advancesOther investmentsFixed & other assets


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The ICICI Group today

Largest private sectorlife insurerLargest private sectorgeneral insurer

Second largest assetmanagement companyLeading private equity &venture fund

Leading investmentbanking and broking co.

Life Insurance(JV with Prudential)General Insurance(JV with Lombard)Asset Management(JV with Prudential)

Private Equity(Wholly owned)

Investment Banking(Wholly owned)

Largest bank in India bymarket capitalisationCICI Bank

Consolidated banking assets ofUS$ 100 bn; market cap of US$ 32bn


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Except for the historical information contained herein, statementsin this Release which contain words or phrases such as 'will','would', indicating, expected to etc., and similar expressions orvariations of such expressions m ay constitute 'forward-lookingstatements'. These forward-looking statements involve a numberof risks, uncertainties and other factors that could cause actualresults to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but arenot limited to our ability to successfully implement our strategy,future levels of non-performing loans, our growth and expansionin business, the impact of any acquisitions, the adequacy of ourallowance for credit losses, technological implementation andchanges, the actual growth in demand for banking products andservices, investment income, cash flow projections, our exposureto market risks as well as other risks detailed in the reports filed byus with the United States Securities and Exchange Commission.ICICI Bank undertakes no obligation to update forward-lookingstatements to reflect events or circumstances after the datethereof.


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Thank you

Documents

2007 11 ICICI Bank Investor Presentation