ICICI Group: Strategy & Performance

November 2010

Agenda
Update on economy Strategy & execution Bank of Rajasthan: status update Financial performance

Agenda
Update on economy Strategy & execution Bank of Rajasthan: status update Financial performance

Current indicators
Growth momentum continues
GDP growth of 8.8% in Q1-2011 compared to 6.0% in Q1-2010 and 8.6% in Q4-2010 Improvement in growth to be aided by normal monsoons Inflation continues to remain at elevated levels

Inflation remains a concern

Inflation at 8.6% in September 2010

Policy tightening measures to contain inflation

Repo rate increased by 100 bps to 6.0% and reverse repo by 150 bps to 5.0% during AprilOctober 2010

Future policy actions to be determined by macroeconomic indicators

Current indicators
Tight liquidity conditions
Banks net borrowers since June 2010 Reflected in rising bond yields and wholesale deposit rates Net FII inflows of ~USD 25 bn1 in AprilOctober 2010
Record inflow of USD 8.0 bn in September 2010

Strong foreign capital flows

BSE Sensex crosses 20,000; rise of 14.5% in H1-2010

Being partly absorbed by the current account deficit; RBI monitoring exchange rate
1. SEBI, Data up to October 25, 2010
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Current indicators
Deposit growth remains moderate

Deposit growth

Total deposits: 12.5% (ytd annualised) at October 8, 2010 (16.4% at October 9, 2009) Demand deposits: (-)9.4% (ytd annualised) at October 8, 2010 (3.4% at October 9, 2009)

Credit growth

Credit growth on year-to-date basis lower than full year growth expectation
Non-food credit growth at 13.4% (ytd annualised) upto October 8, 2010 8.3% for same period last year

Both deposit and lending rates moving up; expect credit growth to pick up in H2-2011

Agenda
Update on economy Strategy & execution Bank of Rajasthan: status update Financial performance

Strategic path
FY2010
Position the balance sheet for growth

FY2011

Pursue profitable growth

4Cs: CASA, Costs, Credit Quality & Capital

Capitalise on economic recovery and leverage expanded branch network for growth Sustain achievements in rebalancing of funding mix, credit quality improvement and cost-efficiencies Focus on customer service delivery

5Cs strategy for FY2011

Credit growth Leverage strong capital base for profitable growth CASA Leverage expanded branch network (including e-BOR branches) to maintain CASA ratio Credit quality Contain credit costs Costs Optimise costs through the growth phase

Customer service Re-organise for customer centricity with branch as primary channel

Progress in Q2-2011
Traction in advances growth Continued sequential expansion in credit book: annualised growth in customer assets (excluding eBoR) of 14% Retail book flat after nine quarters of decline; expected to grow in coming quarters Moderate growth in international book Robust annualised growth in domestic corporate book

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Focus on CASA deposits

Savings deposits (` bn)
700 600 500 400 300 200 100 Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Sep03 04 05 06 07 08 09 10 10 Mar Mar Mar Mar Jun Sep 2007 2008 2009 2010 2010 2010
CASA (` bn) CASA ratio Branches 502.14 21.8% 755 637.80 26.1% 1,262 626.68 28.7% 1,419 842.15 41.7% 1,707 846.18 42.1% 2,016 981.051 44.0% 2,501

CA

4 GR

6%

Average CASA in Q2-2011: 39.2% (Q1-2011: 37.2%)

1. e-BoR CASA at August 12, 2010: ` 46.80 bn
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Progress in Q2-2011
2. 7%

Cost/average assets

2. 5% 2. 5% 2. 3% 2. 1% 1. 9% 1. 7% 1. 5% FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Q2-2011 1. 8% 1. 6% 1. 6% 2. 3% 2. 3% 2. 4% 2. 2%

` bn Operating & DMA1 expenses Cost/income

FY 2005 33.71

FY 2006 47.25

FY 2007 65.02

FY 2008 79.72

FY 2009 68.35

FY 2010 57.18

Q12011 14.61

Q22011 15.35 41.0%

55.7% 54.9% 52.5% 50.0% 43.4% 37.0% 40.0%

1. Direct marketing agency

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Progress in Q2-2011
Continued improvement in asset quality Net NPA ratio decreased to 1.37% at September 30, 2010 from 1.62% at June 30, 2010 (September 30, 2009: 2.19%) Restructured loans declined to ` 25.78 bn at September 30, 2010 from ` 37.37 bn at June 30, 2010 Provisioning coverage ratio increased to 69.0% at September 30, 2010 from 64.8% at June 30, 2010

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Progress in Q2-2011
Customer service initiatives
Enhanced reach
Reaching out in regional languages
Hindi website and IVR in Marathi launched LCD display at branches in 11 languages

Differentiated experience

Priority access and processing for wealth and privileged banking customers
51 specialised wealth branches launched

30 mega branches enabled to provide segmented service to corporate clients Triad connectivity between branches, operations and phone banking for immediate query resolution for exceptions

Improving service

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FY2011: International business

Retail business
Focus on growing remittances business
Market share of about 18%

Build a stable & diversified funding base

Funding franchise

Grow deposit base in branches e.g. by leveraging recent qualified full banking license received in Singapore Tap long term sources of funding (bonds & and syndicated loans) in a calibrated manner to diversify funding

Lending & trade

Continue to pursue India-linked credit opportunities

Leverage domestic relationships

Focus on trade finance including select nonIndia exposures linked to trade with India

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FY2011: Non-banking subsidiaries

ICICI Life
Develop a sustainable model for growth and profitability Maintain market position Focus on maintaining leadership, while improving underwriting profitability Maintain market position among the top three mutual funds Capitalize on retail broking platform and market opportunities to increase revenues and profitability

ICICI General

ICICI AMC

ICICI Securities

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Agenda
Update on economy Strategy & execution Bank of Rajasthan: status update Financial performance

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Status update
Merger effective from close of business on August 12, 2010
IT connectivity established
Basic anywhere banking enabled and ATM connectivity established

Integration status

Internet banking to be enabled in Q3-2011 Integration of all back-end processes before end of FY2011 Retail deposit mobilisation & advances processing currently on Maintained continuity in products and charge structures All ~3,900 employees smoothly integrated as ICICI Bank employees

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Agenda
Update on economy Strategy & execution Bank of Rajasthan: status update Financial performance

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Performance highlights
18.8% increase in profit after tax from ` 10.40 bn in Q2-2010 to ` 12.36 bn in Q2-2011 Net interest income up 8.3% year-on-year
Increase in net interest margin from 2.5% in Q2-2010 to 2.6% in Q2-2011

Increase in fee income by 14.6% from ` 13.87 bn in Q2-2010 to ` 15.90 bn in Q2-2011 Provisions reduced by 40.2% from ` 10.71 bn in Q22010 to ` 6.41 bn in Q2-2011 Increase in consolidated profit after tax by 21.8% to ` 13.95 bn1 in Q2-2011 from ` 11.45 bn in Q2-2010
1. ` 15.83 bn including non-par surplus of ICICI Life
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Composition of total loan book

At June 30, 2010 At September 30, 2010

Overseas bran ch es 26%

Ru ral 9%

Retail bu sin ess grou p 41%

Overseas bran c h es 25% Ru ral 7%

Retail1 bu sin ess group 40%

Domestic corporate 20%

S ME 4%

Domestic c orporate 24%

S ME 4%

Total loan book: ` 1,844 bn

Total loan book: ` 1,942 bn

1.
21

Retail business group includes builder loans and dealer funding

Composition of retail loan book

At June 30, 2010
Cred i t P erso na l c a rd s Other l o a ns 5% sec ured 5% 2%

At September 30, 2010

P erso na l Cred i t c a rd s l o a ns Other 4% 4% sec ured 3%

Vehi c l e l o a ns 26%

H o me 62%

Vehi c l e l o a ns 24%

H o me 65%

Total retail loan book: ` 763 bn

1. 2.
22

Total retail loan book: ` 781 bn

June 30, 2010 :Vehicle loans includes auto loans 10% and commercial business 16% September 30, 2010 :Vehicle loans includes auto loans 9% and commercial business 15%

Asset quality and provisioning

(` billion)
September 30, 2009 Gross NPAs Less: Cumulative provisions Net NPAs Net NPA ratio 94.71 49.13 45.58 2.19% June 30 2010 99.77 64.63 35.14 1.62% September 30, 2010 102.33 70.41 31.92 1.37%

Gross retail NPLs at ` 67.99 bn and net retail NPLs at ` 17.12 bn at September 30, 2010 Net restructured loans of ` 25.78 bn at September 30, 2010 Outstanding general provision on standard assets: ` 14.80 bn at September 30, 2010 Provisioning coverage ratio of 69.0% at September 30, 2010 computed in accordance with RBI guidelines

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Key ratios
FY 2010 Return on average net worth1, 2 Return on average net worth1,2 (Consolidated basis) Return on average assets2 Weighted avg EPS (`)2 Book value (`) Net interest margin2 Fee to income Cost to income (incl. DMA) Cost to average assets (incl. DMA)2 CASA ratio
1. 2.
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(Percent)
Q22010 8.1 9.5 1.2 37.1 460 2.5 36.4 36.1 1.5 36.9% H12010 7.5 9.1 1.0 34.4 460 2.4 34.5 36.7 1.6 36.9% Q12011 7.9 8.6 1.2 36.9 474 2.5 38.7 40.0 1.6 42.1% Q22011 9.2 10.7 1.3 43.3 470 2.6 42.4 41.0 1.6 44.0% H12011 8.5 9.7 1.2 40.2 470 2.6 40.6 40.5 1.6 44.0%

7.9 9.6 1.1 36.1 463 2.5 36.6 37.0 1.6 41.7%

Based on quarterly average net worth Annualised for all interim periods

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 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 Banks equity shares are listed and with the New York Stock Exchange and the US Securities Exchange Commission, and is available on our website www.icicibank.com.

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Thank you

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Unconsolidated financials

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Profit & loss statement

FY 2010 NII Non-interest income 81.14 74.78 Q22010 20.36 18.24 H12010 40.21 39.14 Q12011 19.91 16.80 Q22011 22.04 15.78 H12011

(` billion)
Q2-o-Q2 growth 8.3% -13.5%

41.95 32.58

- Fee income - Other income - Treasury income

Total income Operating expenses DMA expenses Lease depreciation Operating profit

56.50 6.47 11.81

155.92 55.93 1.25 1.42 97.32

13.87 1.40 2.97

38.60 13.58 0.21 0.46 24.35

27.06 1.97 10.11

79.35 28.25 0.48 0.98 49.64

14.13 1.63 1.04

36.71 14.25 0.36 0.22 21.88

15.90 1.32 -1.44

37.82 15.00 0.35 0.35 22.12

30.03 2.95 -0.40

74.53 29.25 0.71 0.57 44.00

14.6% -5.7% -2.0% 10.5% 66.7% -23.9% -9.2%

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Profit & loss statement

FY2010 Operating profit Provisions Profit before tax Tax Profit after tax 97.32 43.87 53.45 13.20 40.25 Q22010 24.35 10.71 13.64 3.24 10.40 H12010 49.64 23.95 25.69 6.51 19.18 Q12011 21.88 7.98 13.90 3.64 10.26 Q22011 22.12 6.41 15.71 3.35 12.36 H12011 44.00 14.39 29.61 6.99 22.62

(` billion)
Q2-o-Q2 growth (9.2)% (40.2)% 15.2% 3.4% 18.8%

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Balance sheet: Assets

(` billion)
September 30, 2009 Cash & bank balances Investments - SLR investments - Equity investment in subsidiaries Advances Fixed & other assets Total assets 292.67 1,199.65 778.34 121.00 1,908.60 262.82 3,663.74 June 30, 2010 304.45 1,275.71 702.20 122.00 1,843.78 216.03 3,639.97 September 30, 2010 348.48 1,362.75 696.82 122.00 1,942.01 246.74 3,899.98 Y-o-Y growth 19.1% 13.6% (10.5)% 0.8% 1.8% (6.1)% 6.4%

Investment in security receipts of asset reconstruction companies at September 30, 2010 was ` 30.95 bn Credit derivative exposure (including off balance sheet exposure) of ` 45.06 bn at September 30, 2010 (underlying comprises Indian corporate credits)
Including impact of exchange rate movement
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Equity investment in subsidiaries

September 30, 2009 ICICI Prudential Life Insurance ICICI Bank Canada ICICI Bank UK ICICI Home Finance ICICI Lombard General Insurance ICICI Bank Eurasia LLC ICICI Securities Primary Dealership ICICI Securities Limited ICICI AMC ICICI Venture Funds Mgmt Others Total 35.93 33.50 23.25 11.12 10.96 3.00 1.58 0.87 0.61 0.05 0.14 121.00 June 30, 2010 35.93 33.50 23.25 11.12 10.96 3.00 1.58 1.87 0.61 0.05 0.14 122.00

(` billion)
September 30, 2010 35.93 33.50 23.25 11.12 10.96 3.00 1.58 1.87 0.61 0.05 0.14 122.00

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Balance sheet: Liabilities

September 30, 2009 Net worth - Equity capital - Reserves Deposits - Savings - Current Borrowings1 Other liabilities Total liabilities
1.

(` billion)
September 30, 2010 539.75 11.51 528.24 2,230.94 632.48 348.57 970.10 159.19 3,899.98 Y-o-Y growth 5.3% 3.3% 5.3% 12.8% 28.2% 47.6% (3.1)% (7.2)% 6.4%

June 30, 2010 528.23 11.16 517.07 2,009.13 565.46 280.72 949.97 152.64 3,639.97

512.58 11.14 501.44 1,978.32 493.18 236.12 1,001.23 171.61 3,663.74

Borrowings include preference shares amounting to ` 3.50 billion

Credit/deposit ratio of 68% on the domestic balance sheet at September 30, 2010
Including impact of exchange rate movement
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Composition of borrowings
(` billion)
September 30, 2009 Domestic - Capital instruments1 - Other borrowings Overseas - Capital instruments - Other borrowings Total borrowings
1.

June 30, 2010 450.70 316.48 134.22 499.27 15.72 483.55 949.97

September 30, 2010 481.51 333.60 147.91 488.59 15.22 473.37 970.10

497.13 262.71 234.42 504.10 16.28 487.82 1,001.23

Includes preference share capital ` 3.50 bn

Capital instruments contribute 69% of domestic borrowings

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Capital adequacy (Basel II)

Basel II September 30, 2009 ` bn Total Capital - Tier I - Tier II Risk weighted assets 573.09 431.42 141.67 3,240.32 % 17.7% 13.3% 4.4% June 30, 2010 ` bn 610.19 422.97 187.22 3,020.37 % 20.2% 14.0% 6.2% September 30, 2010 ` bn 640.57 436.55 204.02 3,166.80 % 20.2% 13.8% 6.4%

-On balance sheet -Off balance sheet

2,501.21 739.11

2,335.93 684.45

2,430.78 736.02

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Overseas subsidiaries

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ICICI Bank UK asset profile

At June 30, 2010
Other a ssets & i nvestments Ca sh & l i q ui d 1 A sset b a c ked 4 6% sec uri ti es sec uri ti es 12% 2% Bo nd s/no tes o f fi na nc i a l i nsti tuti o ns 18%
Bo nd s/no tes o f fi na nc i a l i nsti tuti o ns 18%

At September 30, 2010

Other a ssets & i nvestments 4 A sset b a c ked 6% sec uri ti es 2% Ca sh & l i q ui d sec uri ti es 15%
1

`
2

`
L o a ns & a d va nc es 57%
3

I nd i a l i nked i nvestments 5%

I nd i a l i nked i nvestments 4%

L o a ns & a d va nc es 55%

Total assets: USD 6.9 bn

1. 2. Includes cash & advances to banks, T Bills and CDs Includes India-linked credit derivatives of US$ 121 mn at September 30, 2010 (US$ 138 mn at June 30, 2010) 3. Includes securities reclassified to loans & advances 4. Does not include US$ 137 mn of ABS reclassified as loans & receivable in FY2009
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Total assets: USD 7.2 bn

ICICI Bank UK liability profile

At June 30, 2010
Synd i c a ted l o a ns & i nterb a nk b o rro w i ng s 11% L o ng term D eb t 10% Other l i a b i l i ti es 5% Net wo rth 9%

At September 30, 2010

Synd i c a ted l o a ns & i nterb a nk b o rro wi ng s 8% Lo ng term Deb t 10% Other l i a b i l i ti es 6% Net wo rth 9%

`
T erm d ep o si ts 46%

Dema nd d ep o si ts 19%

`
T erm d ep o si ts 51%

Dema nd d ep o si ts 16%

Total liabilities: USD 6.9 billion

Total liabilities: USD 7.2 billion

Profit after tax of USD 8.4 million in Q2-2011 Capital adequacy ratio at 18.3% Net MTM writeback of USD 4.1 million (post-tax) in reserves in Q2-2011 Proportion of retail term deposits in total deposits at 75% at September 30, 2010
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ICICI Bank Canada asset profile

At June 30, 2010
2

At September 30, 2010

2 India
1

Cash & liquid se curit ie s 13%

India linke d inv e st me nts 3%

F e de rally insure d mort gage 7%

Cash & liquid se curit ie s 16%

linke d F e de rally insure d inv e stme nt s mort gage 3% 4%

Othe r asse ts & inv e st me nt s 7% A sse t backe d se curitie s 2%

Othe r asse t s & inv e stme nts 7% A sse t backe d se curit ie s 2%

`
Loans to custome rs 68%

Loans t o cust ome rs 68%

Total assets: CAD 5.2 bn

1. 2.
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Total assets: CAD 5.0 bn

Includes cash & advances to banks and government securities Includes India-linked credit derivatives of CAD 88 mn at September 30, 2010 (CAD 104 mn at June 30, 2010)

ICICI Bank Canada liability profile

At June 30, 2010
Net wo rth 19%

At September 30, 2010

Net wo rth 19%

Other l i a b i l i ti es 3%

T erm d ep o si ts 62%

Other l i a b i l i ti es 3% Bo rro wi ng s 1%

T erm d ep o si ts 62%

Bo rro wi ng s 1% Dema nd d ep o si ts 15%

Dema nd d ep o si ts 15%

Total liabilities: CAD 5.2 billion

Total liabilities: CAD 5.0 billion

Profit after tax of CAD 7.6 million in Q2-2011 Capital adequacy ratio at 22.9%

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ICICI Bank Eurasia asset profile

At June 30, 2010
Oth er assets & in vestmen ts 2%
1 1

At September 30, 2010

Oth er assets & in vestmen ts 3%

C ash & cash equ ivalen ts 37%

Loan s to corporates & ban ks 38%

Promissory n otes 10%

C ash & c ash equ ivalen ts 18%

Loan s to corporates & ban ks 44%

Promissory n otes 1% Retail loan s 18% C orporate bon ds 4%

Retail loan s 22%

Total assets: USD 353 mn

Total assets: USD 274 mn

C orporate bon ds 3%

Total borrowings of USD 168 million at September 30, 2010 Capital adequacy of 37.7% at September 30, 2010
1.
40

Includes cash & call placements with banks, balances with central bank and nostro balances

Domestic subsidiaries

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ICICI Home Finance

Investments 4% Fixed & other assets 1%

Shareholders funds 13%

Deposits 29%

Loans 95%

Borrowings 58%

Total assets/liabilities: ` 100.81 billion Net profit of ` 0.54 billion in Q2-2011 compared to ` 0.28 billion in Q2-2010 Capital adequacy ratio of 19.8% at September 30, 2010 Net NPA ratio: 1.4%
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ICICI Life
Q2-2010
Annualised premium equivalent (APE) Renewal premium Total premium New Business Profit (NBP) NBP margin Statutory profit/ (loss) Assets Under Management Expense ratio2 12.12 23.11 36.33 2.33 19.2% (0.69) 500.93 10.8%

(` billion) Q2-2011
13.44 22.64 38.73 2.54 18.9% 0.151 654.84 8.0%

Continued market leadership in private sector3

1. For Q2-2011, there was a surplus of ` 2.54 billion in the non-participating policyholders funds. The surplus in the non-participating funds would be available to be transferred to the shareholders account at the end of the financial year based on the appointed actuarys recommendation. Including this surplus, the net profit after tax for the Q2-2011 would have been ` 2.69 billion Expense ratio: All expenses (excl. commission and front line sales cost) / (Total premium 90% of Single Premium) During April 2010 September 2010 on new business retail weighted received premium basis

2. 3.

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ICICI General
(` billion) Q2-2010
Gross premium1 PAT 8.01 0.51

Q2-2011
10.91 1.04

Continued market leadership in private sector2

1. Excluding remittances from third party motor pool and including premium on reinsurance accepted 2. For the period April 2010 - September 2010
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Other subsidiaries
Profit after tax
ICICI Home Finance ICICI Securities Ltd. ICICI Securities PD ICICI Venture ICICI Prudential Asset Management Company

Q2-2010
0.28 0.38 0.14 0.48

(` billion) Q2-2011
0.54 0.29 (0.02) 0.22 0.14

Consolidated profit after tax increased by 21.8% to ` 13.95 billion in Q2-2011 compared to ` 11.45 billion in Q2-2010 If the surplus of ` 2.54 bn in the non-participating policyholders funds of ICICI Life were transferred in Q22011, the Bank's consolidated profit after tax for Q2-2011 would have been ` 15.83 billion

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Thank you

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