Leadership in banking through technology 22ND ANNUAL REPORT AND ACCOUNTS ON THE MOVE 2015 - 2016 AT OUR PLACE AT YOUR PLACE CONTENTS 1 Leadership through Technology 2 ICICI Bank at a Glance 4 Financial Highlights 6 Message from the Chairman 8 Message from the Managing Director & CEO 10 Board and Management 11 Messages from Executive Directors 12 Banking on the Move 16 Banking at Your Place REGISTERED OFFICE 18 Banking at Our Place Landmark 20 Promoting Inclusive Growth Race Course Circle 24 Awards Vadodara 390 007 25 Directors’ Report Tel : +91-265-3263701 CIN : L65190GJ1994PLC021012 77 Auditor’s Certificate on Corporate Governance 78 Business Overview CORPORATE OFFICE 92 Management’s Discussion and Analysis ICICI Bank Towers 116 Key Financial Indicators: Last Ten Years Bandra-Kurla Complex Mumbai 400 051 FINANCIALS Tel : +91-22-33667777 Fax : +91-22-26531122 117 Independent Auditors’ Report – Financial Statements of ICICI Bank Limited STATUTORY AUDITORS B S R & CO. LLP 122 Financial Statements of ICICI Bank Limited 1st Floor, Lodha Excelus 193 Independent Auditors’ Report – Consolidated Apollo Mills Compound Financial Statements N. M. Joshi Marg 198 Consolidated Financial Statements of Mahalaxmi ICICI Bank Limited and its Subsidiaries Mumbai 400 011 243 Statement Pursuant to Section 129 of Companies Act, 2013 REGISTRAR AND 245 Basel Pillar 3 Disclosures TRANSFER AGENTS 246 Glossary of Terms 3i Infotech Limited International Infotech Park Tower 5, 3rd Floor ENCLOSURES Vashi Railway Station Complex Vashi, Navi Mumbai 400 703 Notice Attendance Slip and Form of Proxy LEADERSHIP THROUGH TECHNOLOGY... Digital technology is transforming the way we lead our lives today. The banking and financial services industry is a clear representation of this transformation. Consumers are more mobile than ever before and expect services to be available at the time and place of their choice. At ICICI Bank, we have always realised this need of our ...AT YOUR PLACE customers and developed technology-led offerings to Be it home or office, over the years, we have deliver a seamless banking experience at all places of successfully brought banking closer to the customers, their choice, be it ‘their place’, ‘our place’ or while they at their place of choice. Our sales officers visit are ‘on the move’. customers and use tablets to open their bank accounts. This service was an industry first and is Our consistency and speed in introducing these now almost an industry standard. Innovations like offerings has been recognised at various national Express Home Loans, where customers get their and international forums, through the years. Our zeal home loan sanctioned online within eight hours, shift to improve the banking experience for customers the paradigm completely for a process that has always continues to drive us to innovate and carry forward our been considered cumbersome. Banking at the place leadership in delivering banking services using cutting- of your choice was never so easy and simple. edge technology. ...more on page 16 ...ON THE MOVE ...AT OUR PLACE Recent advances in telecommunications have made The banking experience at our branches today is today’s world an ‘always connected world’ where a confluence of personalised human connect and people demand and consume products and services technology-enabled services. Wait times are now on the move. At ICICI Bank, we have always leveraged history with customers either servicing themselves technology effectively to stay ahead of customer at Insta Banking kiosks or pre-processing part of their needs. iMobile, the first mobile banking application transactions on their iMobile app in advance. Smart of the country was launched in 2008, way before Vault, our state-of-the-art locker facility, uses robotic smartphones were widely embraced, and continues technology to enable customers to access their to be the most comprehensive mobile banking app valuables 24x7, with multi-layer security systems in the country. Pockets, launched just over a year using biometrics. These services represent seamless ago, is India’s first and largest digital wallet launched integration of the digital and physical. by a bank. ...more on page 12 ...more on page 18 Annual Report 2015-2016 1 ICICI Bank at a Glance ICICI Bank, the country’s largest private sector bank, offers a comprehensive range of products and services through a multi- channel delivery network. ICICI Bank continues to be at the forefront of technological innovation to provide simplicity and convenience in banking, in line with its philosophy of khayaal aapka. This has helped the Bank to build a robust pipeline of innovative products and services and consolidate its leadership position. With its cutting-edge technology, wide distribution network and energetic workforce, the Bank continues to stay ahead of competition. ` 9,188 BILLION ` 101.80 BILLION ` 97.26 BILLION CONSOLIDATED TOTAL ASSETS CONSOLIDATED PROFIT AFTER TAX STANDALONE PROFIT AFTER TAX 45.8% 34.7% CASA RATIO COST TO INCOME RATIO 41 MILLION+ CARDS IN FORCE 2 Annual Report 2015-2016 95% 3.6 MILLION ` 1 TRILLION Close to 95% of all savings Pockets, largest wallet launched First private sector bank account transactions happen by a bank, has recorded over 3.6 to cross mortgage outside the branches million downloads portfolio of ` 1 trillion 18,216 150+ SERVICES Largest retail network of 18,216 iMobile, the most comprehensive branches and ATMs among banking app in India, offers over private sector banks 150 services Funds Transfer ` 3 TRILLION Digital channels recorded over ` 3 trillion worth of transactions in fiscal 2016 All information as on March 31, 2016 Annual Report 2015-2016 3 Financial Highlights Total Deposits Total Advances 4,352.64 4,214.26 3,875.22 3,615.63 21.6% 3,319.14 3,387.03 24.3% 4.3% 2,926.14 2,283.26 2,902.49 2,555.00 26.5% 4.4% 2,537.28 1,971.83 27.5% 25.3% 4.4% 1,895.36 27.4% 28.8% 1,700.37 5.2% 30.1% 1,444.81 6.0% 32.5% 28.6% 1,342.30 1,148.60 46.6% 991.33 42.5% 760.46 856.51 39.0% 38.0% 37.0% 588.70 349.73 369.26 432.45 495.20 FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016 Current Accounts (` in billion) Total (` in billion) Retail Overseas Savings Accounts (` in billion) Domestic corporate Total (` in billion) Term Deposits (` in billion) SMEAG Total Assets Capital Adequacy Ratio 5.84% 5.94% 4.92% 4.24% 3.55% 7,206.95 6,461.29 5,946.42 5,367.95 12.68% 12.80% 12.78% 12.78% 13.09% 4,890.69 FY2012 FY2013 FY2014 FY2015 FY2016 FY20121 FY20131 FY20142 FY20152 FY20162 Total Assets (` in billion) Tier I Tier II 1. In accordance with Basel II guidelines of RBI 2. In accordance with Basel III guidelines of RBI 4 Annual Report 2015-2016 NII & NIM Cost to Income Ratio 3.48% 3.49% 3.33% 3.11% 2.73% 212.24 40.5% 42.9% 38.2% 190.40 36.8% 34.7% 164.75 138.66 107.34 FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016 Net Interest Income (NII) (` in billion) Cost to Income Ratio Net Income Margin (NIM) Standalone PAT Consolidated PAT 111.75 110.41 122.47 98.10 97.26 96.04 83.25 76.43 101.80 64.65 FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016 Standalone Profit after Tax (PAT) (` in billion) Consolidated Profit after Tax (PAT) (` in billion) Annual Report 2015-2016 5 Message from the Chairman continuous journey of transformation, diversification and expansion to become a truly universal bank. The Group seeks to address every aspect of the financial services needs – savings, investments, credit, protection and payments – of each and every customer segment – large corporations, small & medium enterprises, urban customers, farming and non-farming rural communities and the under-privileged who have thus far been excluded from access to financial services. ICICI Bank has helped millions of individuals and families achieve their aspirations, as well as played a key role in the creation of infrastructure and industrial capacity in the country. The Indian banking sector is passing through a phase that is both challenging and exciting. The growth slowdown that the economy experienced from 2012 onwards has led to stress on the corporate sector, resulting in both pressure on asset quality as well as limited new growth opportunities in the corporate segment for the banking sector. At the same time, there are robust growth opportunities in the retail segment and in rural areas; and in the continuing opportunities for transformation led by technology. The policy measures put in place over the last two years have also led to a substantial improvement in macro-economic parameters and are laying the foundation for new opportunities for the corporate sector. Over the last few years, ICICI Bank has substantially strengthened its retail and rural business, as evidenced both by its strong deposit franchise and funding profile, the robust growth in its retail loan portfolio and healthy and stable asset quality in this segment. It has continued to innovate using technology to enhance the customer proposition. The Bank has calibrated growth and reoriented It is a pleasure to be addressing my first message to the the strategy of its international operations in line with the shareholders of ICICI Bank as the Chairman of the Board new global environment. The corporate segment, where of Directors. I have had a long prior association with the the Bank had in earlier years supported industrial and Bank as an independent Director on the Board, and I am infrastructure investment critical to India’s growth, has honoured by the confidence the Board and shareholders experienced challenges.