Retail ail bankin ing in a d digi gital tal world Septemb tember er 2015
Certai ain n statements nts in these se slides s are forwar ard-loo ooki king statements nts. . These statements nts are based on management' nt's s current nt expectat ations ns and are subject to uncertai ainty nty and changes s in circum umst stanc ances. s. Actual al result ults s may diffe fer materi rial ally ly from those include luded d in these se statem tements ts due to a variety of factors ors. . More inform ormat ation on about these se factors ors is contai aine ned d in ICICI Bank' k's s filing ngs s with h the US Securi urities s and Excha hang nge Commiss ssion on. All financ ancial al and other inform ormat ation on in these se slide des, s, other than financ ancial al and other r inform ormat ation ion for specific fic subsidi idiar aries ies where re specifi ifical ally ly mentione ned, d, is on an unconsoli nsolidat dated basis s for ICICI Bank k Limited only unless ss specific fical ally stated to be on a consol solidat ated d basis s for ICICI Bank k Limit ited d and its s subsi sidiar diaries. ies. Pleas ase also o refer to the statem tement nt of uncon onsol solidat ated, d, consol solidat dated and segmenta ntal resu sults s requir uired d by Indian an regula ulation ons s that has, along with h these se slide des, s, been n filed d with h the stock k exchanges in India where ICICI Bank’s equity shares are listed and with the New York k Stock k Exchang ange and the US Securi urities s and Exchan hange Commis issi sion on, , and is avail ilab able le on our websi site te www.i .icicibank. ibank.com om 2
1 The digital ital shift t & evolving lving banking ing landsc scap ape ICICI CI Bank: k: strong ng retail ail & rural al franc nchise hise 2 ICICI CI Bank: k: leadership adership in techno hnolo logy 3 3
1 The digital ital shift t & evolving lving banking ing landsc scap ape ICICI CI Bank: k: strong ng retail ail & rural al franc nchise hise 2 ICICI CI Bank: k: leadership adership in techno hnolo logy 3 4
Drivers rs of digitiz tizati ation n in India ia Favo vourab urable le demo mograp aphic hic profile ile A young ng popula lation tion with h media ian n age of 25 years rs 1,432 1,501 1,053 Rising ing share re of work rking ing age 840 840 populatio lation • Addition on of aroun und d 12 million on to the workf kfor orce ce every y year for next five ve years Government’s focus on ‘Digital India’ & move to cashless economy 5
The digital tal shift ft (1/2) /2) Strong ng digital ital tailw lwind inds s in India… World ld No. 2 World ld No. 1 World ld No. 1 ~41% of e- 350 350 mn mn ~32% increas ease e commerce ce on interne net users s in interne net users s mobil ile ~40%-mobi mobile le only in 2014 Among ng the Among ng the fastest st fastest st World ld No. 1 in the world in the world ~10% of Over 55% growth h Among ng fastest st WhatsA sApp pp users s in smartpho phone ne growing ng marke kets s from om India ia usage for Twitter 6
The digital tal shift ft (2/2) /2) …continuing to transform banking Bankin king : then Bankin king : now 7
Evolving lving banking ing landscap ape Regulato ulator r encourag uraging ing innova vatio ion Payments ments: : expand anding ing infras rastru tructu ture re and number er & types es of • playe yers 11 payme ment nt bank k licen ense sees es, , 40 prepa epaid id payme ment nt instrum ument nt • issue uer lice cens nsees, s, 10+ payment nt aggrega gator ors Entit titie ies s with th diverse erse secto tor r experie erienc nce e & capabiliti ilities granted anted payme ment nt bank licenses nses Telec lecom m companies, anies, securit urities ies market et entit tity, postal al • servic vice, botto tom m of pyramid amid playe yers, rs, payme ment nt servic vice provid viders, ers, techn hnolo logy y company any and NBF BFCs Cs 8
Imperati atives for bank nks Constant tant innovatio vation: n: rich h functio tionality nality & high h quality lity custome mer experie erienc nce e Focus us on leverag veraging ing larg rger er produc uct t suite te & deeper eper custome mer relatio lationsh nship ips Explo lore re mutually ally benefic icial ial partnership tnerships 9
1 The digital ital shift t & evolving lving banking ing landsc scap ape ICICI CI Bank: k: strong ng retail ail & rural al franc nchise hise 2 ICICI CI Bank: k: leadership adership in techno hnolo logy 3 10
Enhance hanced retai ail l franc anchis hise Sustaine ained Robust ust Healt lthy hy Low growth th in loan n growth h in delinquencies granular anular fee portf tfolio lio and NPAs incom ome deposit sits s growth th The Bank continu inues es to scale le up its retail ail busine ness s and invest st in streng ngthe hening ning the franc nchise hise & & distrib tributio tion n infrast rastru ructu ture re 11
Exte tensi nsive geogra raphic hical al presence nce Signif nific icant ant inves vestme tment nts s made e in distrib ribut utio ion Branc nch network ork ~52% of branc nche hes s in semi- urban an and rural areas Suppl plement nted d by ~12,80 800 0 ATMs; continu nuing ng to invest st in ATMs 12
Strong ng retail il deposit it franchise nchise Signif nific icant ant impro rove vement ment in funding ing profile ile • ~16% 6% CAGR in CASA deposit sits s since e Mar r 2009 009 • Retail tail deposit sits s as % of domestic estic deposit sits s increase reased from m ~50% 50% at Mar 2009 09 to ~78% 8% at Jun 2015 15 Driven iven by continu inued ed inves vestme tment nts s in physic ical al and techno nolo logic ical al infrastru rastructur ture 13
Robust ust portfo foli lio growth th (1/2) /2) Secured ured retail tail lending ing driving ving over r 20% 0% growth th • Retail tail segme ment nt constit titute tes ~43% 3% of the total l loan book • ~20% CAGR R in retail ail loans ns since ce Mar 2012 Home me loans ns Auto loans ns Jun 2014 Jun 2015 Jun 2014 Jun 2015 14
Robust ust portfo foli lio growth th (2/2) /2) Unsecured ured perso sonal al loans ns & credit it cards growing ing off a low base Perso sonal nal loans ns Credit it cards Jun 2014 Jun 2015 Jun 2014 Jun 2015 Healthy althy growth th in credit it card issuanc uances & & spends Leadership hip positio ition among ngst st priva vate te secto tor r banks ks in debit it card spends ~70% 0% of increme rement ntal al unsec ecure ured lend nding ing to exist sting ing custome mers 15
Focus us on rural l busine iness (1/2) /2) Signif nific icant ant presenc sence in rural al & semi-urb urban an mark rkets ts Approach to Networ ork lending Branch ches Selective geographical approach Grami min branc nche hes Collat ateral al based d BCs 1 & & CSPs Ps 2 lendi ding ng Granu nular ar portfol olio Partne ner linkages kages 2,106 106 branc nche hes in rural al & semi-urb urban an markets kets 1. 1. BCs: Busines ness corresponde pondent nts 2. 2. CSPs Ps: Custome mer service ce point nts 16
Focus us on rural l busine iness (2/2) /2) Dive verse rse produc uct t suite te & granular anular lending ing Key y produc ucts ts includ ude loans ns agains ainst t gold jewelr lry, farm rm equipme ipment t loans, s, kisan an credit it card, agri ri term rm loans s and loans ns to Self f Help Groups s (SHG) Portfol olio o contributes butes~1 ~15% 5% ~33% y-o-y growt wth h at June to retail loans s 30, 2015 Contin tinue ue to focus s on growth th while ile monito toring ring risks ks 17
Sustai tained momentum mentum in fees Retail tail fees s growing ing by 15-20% 0% y-o-y Curre rent t share re of fees • Robus ust t third rd party ty distrib tributio ution n fees • Leader dersh ship ip in distribu ibution ion of insur uranc ance • Strong ng growth h in mutual al fund nd distribut bution on Retail tail banking ing expected ted to continue inue to drive ve growth th in overall rall fees es 18
Retai ail l asset t quali lity ty Low delinq linque uenc ncie ies and NPAs Focus us on lend nding ing to exist sting ing custome mers Analytic lytics s used for credit it decisio isions s Substant tantial ial impro rove veme ment nt in credit it infrastru rastructur ture • Establi blish shed ed credit dit bureaus eaus with exten ensi sive e database ase ss • Increase ased d custom omer awarene ness Delinq linquenc uency y leve vels ls indic icating ating no signs ns of stress s in the retail ail portf tfolio lio 19
1 The digital ital shift t & evolving lving banking ing landsc scap ape ICICI CI Bank: k: strong ng retail ail & rural al franc nchise hise 2 ICICI CI Bank: k: leadership adership in techno hnolo logy 3 20
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