ICI CICI CI Gr Group: oup: Per erfor orman mance ce & St - - PowerPoint PPT Presentation

ICI CICI CI Gr Group:

• up:

Per erfor

• rman

mance ce & St Stra rateg egy

May 201 016

2

Agen enda

Indi dian an econ

• nomy
• my

ICICI I Group Key regulat ulatory

• ry develo

lopme ment nts Inte tern rnational tional bu busine iness ss

3

India: : st strong long ter erm fundam ament entals als

Favourable ble demogr graphic phics Health thy y savi vings gs & investm tmen ent rates s Risin ing g per capita income High gh potent ntial ial for infra rastru tructur ture e develo lopm pmen ent Key y drive vers rs of gr growth

4

Risi sing ng shar are e of worki king ng age e populat ation

• n
• Addition

tion of around d 12 12 million llion to the e workf kforce

• rce every

ery year ar for next five ve year ars

• Worki

king ng age e populat ation n excee ceeds s 50% of total al populat ation A young g populat ation

• n with

h media dian age e of 25 year ars Depe pendenc dency y ratios s to rem emain ain low till 2040 2040

840 840 1,053 1,432 1,501 840 840 1,053 1,432 1,501

Favo vorable le demogra raphic hic profile file

India: : st strong long ter erm fundam ament entals als

5

Per Capita a GDP (USD)1

840 840 1,053 1,432 1,501

FY2005 FY2015 749 749 1,688

Dome mestic stic consum sumption tion and investment vestments s driven ven by favo vourab urable le demo mogra raphics phics and rising ing income me leve vels ls

India: : st strong long ter erm fundam ament entals als

1.

• 1. Source:

: IMF 2.

• 2. Source:

: Minis istry ry of Statistic ics and Programm amme Imple lement mentat atio ion, n, Governm rnment nt of India ia

840 840 1,053 1,432 1,501

FY2003 FY2015

~25% ~25% ~34% ~34%

Investment t rate2

Health thy y savi vings gs & i inve vestm tment ent rate

6

Rec ecen ent t tren ends s in the e Indian an ec economy

Seve vera ral l pol

• licy

cy measures asures Low inflatio flation & decli clining ning intere terest t rates tes Signs gns of impr prove veme ment nt in econom

• nomic

ic activity ivity Stron rong g extern ternal al posi

• sition

tion

7

Improvement vement across ss key ey param ameters eters

Infla latio tion n & i intere erest t rates

• Governm

nment nt adhere red to the f fiscal al deficit it target t of 3.9% of G GDP in FY2016; ; likely to continu nue on the fiscal l roadmap map of 3.5% in FY2017 and 3.0% % in FY2018

Fiscal defic icit it

• Current

nt accou count nt deficit it decline ned d to 1.4%

• f GDP durin

ing g 9M 9M-2016 2016 from a p peak of 4.8% of G GDP in FY2013

• Forex

x reserves current rently ly at US$ 360 360 billio ion n coverin ing g 12 12 months of import rts

• FDI inflow
• ws

s of US$ 42.02 billio ion n during ng Apr-Feb b 2016 compare ared d to US$ 35.28 billion

• n inflows

ws in in FY2015 15

Extern ernal sector

• Gradual

dual improv

• vement

nt in GDP growth th contin inue ued

• Advance

nce GDP growt wth h estimate by CSO for FY2016 at 7.6%

• GVA growth

th at 7.3% in 9M-2016 with agricult icultur ure growt wth h of 0.6%, , indust stry ry 7.4%, , service ces 9.2%

• Non-food
• od credit

it growth h at 10.5% % at Apr 15, 2016 , g growth h driven by r retail l loans ns

GDP gr growth

• Inflation remained within RBI’s target

range ge; ; 5.4% in in April il 2016

• RBI reduce

ced d repo rate by 1 150 basis points since January ary 2015

8

Sev everal eral policy mea easures sures announc nced ed

• Introd
• duc

uction

• n of c

compos

• sit

ite cap in foreign n investments ts

• FDI limits hiked for insurance

rance, railwa ways s and defence ce sectors rs

• More economic

ic activit itie ies brought ght under automatic atic route for foreign gn investment nts

Foreig eign n investm tmen ents

• Over 10,000 km o
• f r

road d projects cts awarde rded

• Selection
• n of f

first 20 cities for Smart t City project ect announ

• unce

ced

• Renewable

ble energy capac acit ity target t enhance nced d to 175 GW by 2 2022

Infra rastru tructur ture

• Indradha

adhanu nush scheme announ

• unce

ced d for public ic sector banks

• UDAY scheme to a

addre ress ss issues relating ng to state electri rici city y boards rds

• Workin

ing g towards rds strength theni ning ng resolut ution ion mechani nisms s and introducing ducing Bankru rupt ptcy cy code

• Revised interest

t rates on small savings; gs; rates to be m market driven

Financ ncia ial l sector

• Direct benefit transfe

fers rs

• Insurance

rance and pension n schemes for Jan- Dhan a/c holders rs

• Launch

nch of MUDRA A plan n for MSME E sector

• Scheme to support
• rt start-up

ups

Social sector r measures res

9

Ho Howev ever er, , so some e concer erns s rem emain ain

• Growth

h in Index x of Industrial trial Produc uctio tion n remain ined ed volatile ile through ugh the year; ; gr growth h of 2.4% % in FY2016 16 compare red d to 2.8% % in FY2015 15

• Growth

h in gr gross capital l formatio tion n remain ined ed subdued ed; ; gr grew by 5 5.2% % durin ing g 9M-201 2016 6 compared ed to 4.7% % in 9M- 2015 2015

• Global

l commodit ity price ce trends ds impacted ed certain in sectors rs

• Exports
• rts have

ve decl clin ined ed for 16 16 co consecu cutiv tive e months

• As

Asset qualit ity of banks impacted ed by enviro ronm nmen enta tal l factors s and RBI’s objec ectiv tive e of early and conserv rvativ tive e recogn gnition ition

• f stres

ess and provi visio sionin ning

10

Agen enda

Indian an economy my ICICI I Group Key regulatory ulatory de develop lopme ment nts Inte tern rnation tional al busine iness ss

ICICI Group

Savings gs Investm tmen ents Capital l flows Protec ection tion Credit it Spanning ng the spect ctrum rum of financial cial servi vices ces

11

12

Strong g franch chise ise

• Strong

ng and growi

• wing

ng ret etai ail fran anch chise se

• Wel

ell l esta tabli blishe shed corpo pora rate te fran anchise hise along ng with th

• ver

erse seas as presen sence ce

• Sustai

ained ned privat ate sector ctor marke ket leadershi adership1

• Strong

ng profit fitabi ability

• Sustai

ained ned privat ate sector ctor marke ket leadershi adership1

• Heal

alth thy ret eturn urns

• India’s largest

mutual ual fund1

• Strong

ng fund perfo forman ance ce

• Large

gest st online ne ret etai ail broki king ng platfo form

• Strong

ng franc nchis hises es; mark rket-linke inked d busine ness sses es

1. 1.Based on retail weight hted received premiu ium m for FY201 016 2. 2.Based on gross written n premium mium for FY201 016 3. 3.Based on average AUM for the quarter ended March 31, 2016 16

13

ICICI Ba Bank

Tier r I capital l adequacy of 13.09% 09% at March 31, 2016 as per RBI’s guidelines on Basel III norms Global l presen ence e in 17 countrie ries (inclu ludin ding g India) Diversi rsified fied loan portfolio

• lio

Investment grade ratings from Moody’s and S&P Large gest st private te sector r bank in India ia in terms of total assets1 Large ge physical l footprin print in India ia: : 4,450 50 branches es and 13,766 766 ATMs

1. 1. Based on consoli lidate ted assets

Leaders ership ip in technolo

• logy

gy

Performance formance highlights ghlights

14

15

He Health thy y loan growth driven en by ret etail il

Overall ll loan gr growth th at 12.3% 3% y-o-y Total loans at ` 4,353 53 bn at Mar 31, 2016

1. 1.

Overseas as portfol

• lio

io decrease ased d by 6.0% y-o-y in US US$ terms

1

1

16

Strong g growth h across ss ret etai ails ls se segments ents

Retail il loan gr growth h at 23.3% 3% y-o-y Total retail il loans at ` 2,028 28 bn at Mar 31, 2016

1. 1.

March rch 31, 2016: : Vehicle e loans ns inclu lude des auto

• loans

ns 11.0%, %, commercia cial l busine ness s 6.3%, , two-wh wheele eler r loans 0.1%

1

17

Robust st funding ng profile e

Period riod-end end CASA SA rati tio

• Accreti

retion

• n of ` 193.70

bill illion ion to savings ings acco ccount unt dep eposits

• sits and

nd ` 93.50 bill illion ion to curre rent nt account unt dep eposits

• sits in FY2016

16

16.6% 6% y-o-y gr growth h in total deposit sits; s; proportio

• rtion

n of retail il deposits its contin inue ues to be healthy hy at about 74% 17.2% 2% y-o-y growth in average e CASA deposits its in Q4- 2016; 6; average e CASA r ratio

• improved

ed from 39.5% in FY2015 15 at 40.7% % in FY2016 16

Balanc ance sheet: slide 32

Growin ing g payments s franchi hise se

Tec echnology logy lea eadershi ership

18

Credit it cards Debit t cards

Best-in in-cla lass ss mobile le applicat cation ion

Tec echnology logy lea eadershi ership

19

 More than 140 servic

ices es

 Industry

try firs rst t featur ures: es:

 Favour

vourites ites for

• r faster

ter transacti ansactions ns

 Chat

at serv rvices ices & authenticate thenticated call ll

 Rail

il ticket ket book

• oking

ing

 Touc

uch h ID Login gin & Watch tch Banking king

 For

• rex

ex purchases rchases

 Only Bank to offer

r insta-bank nkin ing g faci cilit lity y on mobile le iMo Mobile ile

Innovativ tive e offerin rings gs to impro rove e customer er convenien ience

20

• Banking servi

vices ces ava vailable le on Face cebook and Twitter er

• Fan base of over 4.7 million

lion on Facebook

• k

India’s First Digital Bank: over 3.6 million downloads

Signifi gnificant cant inter erest est fro rom non-ICIC ICICI I Bank k custo tome mers rs

Presen ence e on social l media

• Am

Amongs gst the top 4 wallet t apps in terms ms of time spent

• n the app

app1

• Only bank app

app to figu gure re in the top wallet t apps

1.

• 1. As per Nielsen

n Whitepape aper r on Wallets ts

Tec echnology logy lea eadershi ership

21

Tec echnology logy lea eadershi ership

Ad Adoption

• n of digi

gita tal l offeri erings gs

1.

• 1. Financ

ancial ial and non-fi financ nancial al transact actio ions ns of savings gs accoun

• unt customers

rs

2.

• 2. Include

udes touch h banking ng, , phone ne banking ng & debit cards ds POS transact actio ions ns

Continu nue e to rollo lout ut technology

• logy initia

tiativ tives es with focus on

• Innovation

tion

• Customer

er experi erien ence ce

• Cross-sell

ell

• Operatin

ting g effic icien iency

• An

Analytic ics

Channe nel l mix of t trans nsact actio ions ns for FY2016

Way forward rd

Others 5.9% ATM 24.8% Internet & mobile ile 62.9% Branch 6.4%

22

Cred edit t quality ty (1 (1/2)

Trends nds impacted ed by environ ronme menta ntal l factors and RBI’s objective of early ly and conserv rvativ tive e recogn gnition ition of stress s and provision sionin ing

` billion March ch 31, 2015 2015 March ch 31, 2016 2016 Gross

• ss NPAs

152.42 42 267.21 21 Less: s: cumula ulative ve provisio visions ns 89.17 134.24 24 Net NPAs 63.25 132.97 97 Net NPA ratio 1.40% 2.67%

Provis isioni ioning g coverage ge ratio

• at 61.0%

% includ udin ing g cumulativ tive e technic ical/ al/ pruden entia tial l write-offs;

• ffs; 50.6%

6% excludin uding g cumulativ tive e technic ical/ al/ prude denti ntial l write-offs

• ffs

23

Cred edit t quality ty (2 (2/2)

NPA a A and restru ructur turin ing g trend nds

` bill llion March ch 31, 2015 2015 March ch 31, 2016 2016 Net NPAs (A) 63.25 132.97 97 Net rest struc uctured ured loans s (B) 110.17 17 85.73 Total (A+B) B) 173.42 42 218.70 70 Total l as a % of net custome mer asse sets 3.84% 4.40%

Portfo foli lio trends and approac roach: h: slide 34

Impact ct of Reserv erve e Bank of India (RBI) ) As Asset Qualit ity y Revi view w fully ly considere ered This is over and above provisi isions ns made for non-perform performin ing g and restru tructur ured ed loans as p per RBI gu guidelin delines Furthe her, , the Bank has made a c collec ectiv tive e contingen ngency cy and relat ated ed reserv erve of ₹ 36.00 0 billion lion durin ing g Q4-201 2016 6 on a p pruden ent t basis towards exposure sure to ce certain in sect ctors rs

24

Oper erati ating ng per erforma rmanc nce

Granul anular ar revenue evenue stream ams Heal alth thy oper eratin ting g effi ficiency iency

• Margi

gin n focus s across ss busines nesses ses

• Dome

mest stic c margins ns improv proved ed by ~90 bps since ce FY2010 10

• Overse

erseas as margins gins impr proved ved from

• m

0.41% % in FY2010 10 to 1.86% % in FY2016

• Margi

gins ns wer ere e lower er in Q4-2016 016 prima marily y on account nt of non-acc ccrual al of interes erest income

• me on high

h NPAs Bran anch ch network

• rk

Cost-inc ncome

• me (%)

Profit it & l loss statement: : slide 43 Key r ratios

• s:

: slide 45

25

Significant value in subsidiaries

• Sale

e of 4.0% % shareh reholdi lding ng to Hasham am Trader ders s (Prem emji Invest stme ments nts) ) and 2.0% % to Temas asek

• Company

any valuat ation at ₹ 325.00 00 bn bn

ICICI ICI Life

• Sale

e of 9.0% % shareho holding ding to joint venture ure partner ner Fairfax fax Financ ncial al Holdings ngs

• Company

any va valuat ation at ₹ 172.25 25 bn bn

ICICI ICI Genera neral

Commenced ed value unlock

• ckin

ing g in H2-2016 2016 Ag Aggr gregate te pre-tax x ga gain of ₹ 33.74 74 billion lion in FY2016 16

• Insura

ranc nce e holdin ings gs valued at about ₹ 330.00 .00 billion lion based on concluded ded transactio ctions ns

• Furthe

her, , sign gnif ifica icant t value in other r domestic ic subsidiari iaries es

26

Strong g capital tal posi sition

• n

Exces cess s Ti Tier-1 1 ratio io of 5.46% % ove ver the minimu mum m requir irem emen ent t of 7.63% 3% as p per curren ent t RBI gu guideli eline nes

• Capital

l ratios

• s sign

gnific ificantl ntly high gher er than regu gula lato tory ry requi uirem remen ents ts

• Tier-1

1 capital is composed d almost entire irely ly of core equity ty capital

• Substantia

tial l scope to raise e Ad Additio iona nal l Tier-1 1 and Tier-2 2 capital

March ch 31, 2016 Tier er I CAR 16.64% 4% 13.09% 9%

Stand andalon lone

As Assuming g Tier-1 1 ratio

• at 1

10.00 00%, %, surplu lus capital l of about ₹ 190.00 .00 billio lion n at Mar 31, 2016 2016

27

Way forward: rd: 4x4 agen enda da

Robust t fundin ing g profile file Digit ital al leader ership ip & strong g customer er franchis ise Continu nued ed co cost efficien ciency cy Focus on capital effic icie iency includin ding g value unlockin king Monitorin

• ring

g focus Improve

• vemen

ent in portfolio folio mix Concentra tration tion risk reduc uctio tion Resolu lutio tion n of stres ess cases

Enhan hancing cing franchise anchise Portf tfolio

• lio

quality ity

28

In su summary ary (1 (1/3)

Positiv tive e indica cators tors in some sect ctors rs e.g. roads, , logi gistic tics, s, railw lways, , defenc nce expec ecte ted d to lead to credit it demand We will gr grow by y selecti ective vely ly ca capturing ing these

• pport

rtun unitie ities Continu nuin ing g momentum um in retail il lending ding Limit it framewo work rk in place for enhanced ed managemen ent t

• f concentra

tration ion risk

1 2 3 4

Loan gr growth backed by strong g fundin ing g profile ile and cu customer er franch chis ise

5

29

In su summary ary (2 (2/3)

Maintain inin ing g leaders ership ip in digi gita tal l and technology logy- enabled ed customer er convenien ience Close e monitorin

• ring

g of existin ting g portfolio

• lio with focus on

resolu lutio tion n and reduc uctio tion n of vulnera erable ble exposur ures es Created ed collec ectiv tive e conting ngen ency and rela late ted d reserv erve e of ₹ 36.00 00 billion lion The Bank will provid ide e a q quarterly erly update on key exposu sure res

6 7 8 9

In su summary ary (3 (3/3)

Stron

• ng

g capital l base with Tier-1 1 capital l adequacy of 13.09% 09% Substantia tial l value creation ion in subsidiarie diaries

10 10 11 11

30

Thank k you

31

Ba Balance e sh shee eet: : ass sset ets

` billion March ch 31, 2015 2015 De Dece cember ber 31, 2015 March ch 31, 2016 2016 Y-o-Y Y growt

• wth

Cash & bank balan ance ces 423.05 05 377.00 00 598.69 69 41.5% Invest stments 1,581. 1.29 29 1,635. 5.43 43 1,604. 4.12 12 1.4%

• SLR inve

vestme stments ts 1,056.02 6.02 1,147.71 7.71 1,104.06 4.06 4.5%

• Equity

y inves estment ent in subsidia diaries 110.89 89 110.32 32 107.63 63 (2.9)% 9)% Advance ces 3,875. 5.22 22 4,348. 8.00 00 4,352. 2.64 64 12.3% Fixed ed & other er asse sets ts 581.74 74 662.08 08 651.50 50 12.0%

• RIDF 1and rel

elat ated ed 284.51 51 289.37 37 280.66 66 (1.3)% 3)% Total assets 6,461.29 7,022.51 7,206.95 11.5% Net inve vest stment t in secur urit ity recei eceipts ts of asset et reconstruction nstruction companies anies was ₹ 6.24 4 billion

• n at March

ch 31, 2016 2016 (Dece ecember mber 31, 2015: 5: ₹ 6.39 9 billion

• n)

1.

• 1. Pur

ursu suan ant to to RBI BI gu guid idel eline dat dated Jul uly 16 16, 2015 2015, th the Bank Bank has has, effe ffect ctive th the quar quarte ter end nded ed Ju June 30 30, 2015 2015, re re-cla classi sifie fied depo eposi sits plac placed wit ith NA NABARD BARD, SI SIDBI an and NH NHB

• n
• n ac

accoun count of

• f sh

shor

• rtfa

fall ll in in len endin ing to to pr prior iority se sect ctor

• r fro

from ‘Investments’ to to 'O 'Other ther Assets'.

2.

• 2. Rural

al Infras astru truct ctur ure Development nt Fund

32

Ba Balance e sh shee eet: : liabilities ilities

` billion March ch 31, 2015 2015 De Dece cember ber 31, 2015 March ch 31, 2016 2016 Y-o-Y Y growt

• wth

Net worth 804.29 29 895.92 92 897.36 36 11.6%

• Equity

y capital al 11.60 11.63 11.63 0.3%

• Rese

serve ves 792.70 70 884.30 30 885.66 66 11.7% Depos posits 3,615. 5.63 63 4,073. 3.14 14 4,214. 4.26 26 16.6%

• Savings

ngs 1,148. 8.60 60 1,269. 9.18 18 1,342. 2.30 30 16.9%

• Current

ent 495.20 20 571.81 81 588.70 70 18.9% Borrowi

• wings

ngs1,2

1,2

1,724. 4.17 17 1,771. 1.61 61 1,748. 8.07 07 1.4% Other her liab abilities 317.20 20 281.84 84 347.26 26 9.5% Total liabilities 6,461.29 7,022.51 7,206.95 11.5%

Cred edit/d t/dep eposit sit ratio tio of 83.2% on the e domestic

• mestic bal

alance ance sheet eet at March rch 31, 2016

1.

• 1. Borrowin
• wings

gs inclu lude de preference nce shares s amount ntin ing g to ₹ 3.50 billion

• n

2.

• 2. Includi

uding ng impact ct of e exchang hange rate movement Fundi ding ng profile: le: slide 17

33

Portfol folio io compositi sition

• n over

er the e yea ears

1.

• 1. Includ

udin ing impact ct of e exchang hange rate movement

% of total al advance ces March ch 31, 2011 March ch 31, 2012 March ch 31, 2013 March ch 31, 2014 March ch 31, 2015 March ch 31, 2016 Reta tail il 39.3% 38.0% 37.0% 39.0% 42.4% 46.6% Dome mest stic c corpor

• rat

ate 28.2% 28.6% 32.5% 30.1% 28.8% 27.5% SME SME 7.0% 6.0% 5.2% 4.4% 4.4% 4.3% Inter ernat nation

• nal

al1 25.5% 27.4% 25.3% 26.5% 24.3% 21.6% Total advances (₹ billion) 2,163 2,537 2,902 3,387 3,875 4,353

34

Sec ector-wi wise se ex exposu sures res

1.

• 1. Top 10 based on positio

ion n at March ch 31, 2016 2016

2.

• 2. Figur

ures may not be f fully compara arabl ble with subseque uent nt periods ds due to certai ain n reclas assifi fica catio ions ns effective 2013

Top 10 sectors ctors1: : % of total al exposur sure of the e Bank March ch 31, 2011 March ch 31, 2012 March ch 31, 2013 March ch 31, 2014 March ch 31, 2015 March ch 31, 2016 Retai ail finan ance ce 17.4%2 16.2%2 18.9% 22.4% 24.7% 27.1% Banks ks 9.8% 10.1% 8.8% 8.6% 7.8% 8.0% Electr ectron

• nics

cs & Engine neeri ering ng 7.8% 8.1% 8.3% 8.2% 7.6% 7.3% Road, , port, , telecom com, urban an develo velopme pment nt & other er infra fra 5.8% 5.8% 6.0% 6.0% 5.9% 5.8% Crude de petrole

• leum/r

um/refi finin ning g & petroch chem emical cals 5.8% 5.5% 6.6% 6.2% 7.0% 5.7% Power er 7.1% 7.3% 6.4% 5.9% 5.5% 5.4% Services rvices - finan ance 6.6% 6.6% 6.0% 4.9% 4.2% 4.9% Services vices - Non finance ance 5.3% 5.5% 5.1% 5.2% 5.0% 4.9% Iron/S /Steel & Products cts 5.1% 5.2% 5.1% 5.0% 4.8% 4.5% Constructi ction 3.8% 4.3% 4.2% 4.4% 4.0% 3.4% Total exposure of the Bank (` billion) 6,184 7,133 7,585 7,828 8,535 9,428

35

There re are uncerta tain inties ties in respec ect t of certain ain sectors rs due to:

• Weak gl

global l eco conomic mic envi viron ronmen ment

• Sharp downturn

rn in the commodit ity cycle

• Gradual

l nature re of the domestic tic economic ic recovery ery

• High

gh levera erage ge

• Am

Among g the top 10 sect ctors rs, , power r and iron n & s steel l sect ctors rs are the key sectors rs in this context xt

• Beyond the top 10 sectors

rs, , minin ing, , cement t and rigs gs sectors rs are the key sectors rs in this context xt

36

Exposure sure to key ey se sectors rs (1 (1/2) )

% of total al exposur sure of the Bank March ch 31, 2011 2011 March ch 31, 2012 2012 March ch 31, 2013 2013 March ch 31, 2014 2014 March ch 31, 2015 2015 March ch 31, 2016 2016 Power er 7.1% 7.3% 6.4% 5.9% 5.5% 5.4% Iron/S /Steel 5.1% 5.2% 5.1% 5.0% 4.8% 4.5% Mining ng 1.4% 2.0% 1.7% 1.7% 1.5% 1.6% Cem ement ent 1.6% 1.2% 1.4% 1.4% 1.5% 1.2% Rigs gs 0.6% 0.5% 0.5% 0.8% 0.5% 0.6%

37

Exposure sure to key ey se sectors rs (2 (2/2) )

• Proportion
• rtion of expos
• sur

ure e to key sectors rs gr gradually lly decrea easin sing g over the last three ee years

• Net increa

rease e in exposur ure e to key sectors rs of about ` 59.40 40 billion lion in FY2016 16 was entirely rely in in A- and above ve ca catego gory ry

38

Further her drilldow down: : approac ach

All internally ‘below investment grade’ rated companies in key sectors rs across domestic tic corpora

• rate,

e, SME and intern ernat ationa ional l branches es portfolios

• lios

Prom

• moter

ter entitie ities s internally ‘below investment grade’ where e the underlyin rlying g is partly ly linke ked d to the key sectors rs SDR and 5/25 5 refin inanc ncin ing g included uded Fund-ba based ed limits its and non-fu fund nd based outstandin nding g to above categor gories ies considered dered

1 2 3 4

Loans alread ady classified fied as r restru tructur ured ed and non- perfor formin ming g exclu luded ded

5

39

Further her drilldow down: : ex exposu sure re

1.

• 1. Aggre

rega gate fund based limits and non-fu fund nd based outstandi anding ng

2.

• 2. Exclu

ludes es central ral public ic sector r owned undertak takin ing

3.

• 3. Promot
• ter

r entities where underly lyin ing is p partl tly linked to t the key sectors rs

4.

• 4. Exclu

ludin ing g impact ct of curre rency ncy depreci ciati ation

• n

5.

• 5. In additi

tion,

• n, about

ut ₹ 20 billion

• n of non-fun

und based exposur ure to borrowe

• wers

rs already ady clas assif ifie ied d as non-pe perf rform

• rmin

ing g needs to b be closely y monitore

• red for

potential ial devolvement nt

` billion Exposur sure1,2

1,2 at

March ch 31, 2016 % of total al exposure

• sure
• f the Bank

Power er 119.60 60 1.3% Mining ng 90.11 1.0% Iron/S /Steel 77.76 0.8% Cem ement ent 66.43 0.7% Rigs gs 25.13 0.3% Promote moter entities es3 61.62 62 0.7%

Ne Net reduc uctio tion n of about ₹ 20.00 0 billi lion4 in FY2016 16 in exposu sure re to companies es covered ed above

40

Our approac ach

Workin ing g with borro rowers ers for reduction tion and resolu lutio tion n of exposu sure re throu

• ugh

gh asset sales and delev evera eraging ging Created ted collec lectiv tive e contin ingenc gency and rela lated ed reserv erve e of ₹ 36.00 00 billio lion Strong g Tier-1 1 capital l adequacy of 13.09% 09% with substantial tial scope to raise e Ad Addition ional al Tier-1 1 and Tier-2 2 capital

1 2 3

Substantia tial l value in subsidia diarie ries

• Insura

ranc nce e holdin ings gs valued at about ₹ 330.00 .00 billion lion based on co concl cluded ded transact ctio ions ns

• Furthe

her, , sign gnif ifica icant t value in other r domestic ic subsidia diarie ries

4

41

Way forward rd

The Bank has a m monitorin

• ring

g and action plan with focus

• n reduc

ucin ing g these e exposur ures es The Bank will provid ide e a q quarterly erly update on these exposu sures res

Credit qualit ity: : slide 23

42

Profi fit t & l loss ss st statement ement (1 (1/2)

1. 1.

Include udes net foreign n exchange ange gains ns relatin ing to o

• verseas

as operat atio ions ns of ` 6.42 billion

• n in FY2015,

, ` 1.82 billion ion in Q4 Q4-2015 2015, , ` 1.43 billion ion in Q3 Q3-2016, , ` 2.61 billion

• n in Q4

Q4-2016 and ` 9.41 billion

• n in FY2016

2. 2.

Include udes profit it on sale on share rehol holdin ding in ICICI Life and ICICI General ral of ₹ 21.31 billion

• n in Q4-2016 and ` 33.74 billion
• n in FY2016

` billion FY2015 15 Q4 Q4- 2015 2015 Q3 Q3- 2016 2016 Q4 Q4- 2016 2016 FY2016 16 Q4 Q4-o-Q4 Q4 growt

• wth

NII 190.40 40 50.79 54.53 54.05 212.24 24 6.4% Non-interest st income

• me

121.76 76 34.96 42.17 51.09 153.22 22 46.1%

• Fee

ee income

• me

82.87 21.37 22.62 22.12 88.20 3.5%

• Other

her income

• me1

21.96 6.33 5.13 7.07 24.42 11.7%

• Trea

easur sury y income

• me2

16.93 7.26 14.42 21.90 40.60

• Total income

312.16 85.75 96.70 105.14 365.46 22.6% Oper erat ating ng expen penses ses 114.96 96 31.07 31.10 34.06 126.83 83 9.6% Operating profit 197.20 54.68 65.60 71.08 238.63 30.0%

43

Profi fit t & l loss ss st statement ement (2 (2/2)

` billion FY2015 15 Q4 Q4- 2015 2015 Q3 Q3- 2016 2016 Q4 Q4- 2016 2016 FY2016 16 Q4 Q4-o-Q4 Q4 growt

• wth

Operating profit 197.20 54.68 65.60 71.08 238.63 30.0% Provisio sions ns 39.00 13.45 28.44 33.26 6 80.67

• Profit before

collective contingency and related reserve and tax 158.20 41.24 37.16 37.82 157.96 (8.3)% Collecti ctive ve continge ngency cy and rel elat ated res eserve ve

• 36.0

.00 36.0 .00

• Profit before tax 158.20

41.24 37.16 1.82 121.96 (95.6)% Tax 46.45 5 12.02 6.98 (5.20) 20) 24.7 .70

• Profit after tax

111.75 29.22 30.18 7.02 97.26 (76.0)%

Operat atin ing g performa rmanc nce: : slide 24

44

Key ey ratios ios

Operat atin ing g perform rmanc ance: : slide 24

Perce rcent FY FY2015 15 Q4 Q4-20 2015 15 Q3 Q3-20 2016 16 Q4 Q4-20 2016 16 FY FY2016 16 Return urn on aver erage age networ

• rth1

14.3 14.6 13.6 3.2 11.3 Return urn on aver erage age asse sets1 1.86 1.92 1.82 0.41 1.49 Wei eighte ghted d aver erage age EPS1 19.3 20.5 20.7 4.9 16.8 Book value ue1 (`) 139 139 139 139 154 154 154 154 154 154 Fee e to income me 26.5 24.9 23.4 21.0 24.1 Cost t to income me 36.8 36.2 32.2 32.4 34.7 Aver erage age CASA ratio 39.5 39.9 40.7 40.5 40.7

1. 1.

Annuali ualise sed for all interim periods ds

45