ICICI Bank Performance Review - Quarter ended September 30, 2008

Tuesday October 28 12:37 AM

The Board of Directors of ICICI Bank Limited (NYSE:IBN) at its meeting held at Mumbai today, approved the audited accounts of the Bank for the quarter ended September 30, 2008 (Q2-2009).

Highlights

-- The profit after tax for Q2-2009 was Rs. 1,014 crore (US$ 216 million) compared to the profit after tax of Rs. 1,003 crore (US$ 214 million) for the quarter ended September 30, 2007 (Q2-2008).

-- The profit after tax for Q2-2009 represents an increase of 39% over the profit after tax of Rs. 728 crore (US$ 155 million) in the quarter ended June 30, 2008 (Q1-2009).

-- Core operating profit (operating profit excluding treasury) increased 42% to Rs. 2,437 crore (US$ 519 million) for Q2-2009 from Rs. 1,712 crore (US$ 365 million) for Q2-2008.

-- Net interest income increased 20% to Rs. 2,148 crore (US$ 457 million) for Q2-2009 from Rs. 1,786 crore (US$ 380 million) for Q2-2008.

-- Fee income increased 26% to Rs. 1,876 crore (US$ 399 million) for Q2-2009 from Rs. 1,486 crore (US$ 316 million) for Q2-2008.

-- Operating expenses(1) decreased 12% to Rs. 1,688 crore (US$ 359 million) for Q2-2009 from Rs. 1,926 crore (US$ 410 million) for Q2-2008 due to the Bank's focus on efficiency improvement and cost rationalization. The cost/average asset ratio for Q2-2009 was 1.7% compared to 2.1% for Q2-2008, and the cost/income ratio for Q2-2009 was 42.5% compared to 50.5% for Q2-2008.

Operating review

Deposit growth

The Bank has adopted a conscious strategy of focusing on current and savings account deposits and reducing its wholesale term deposit base. Current and savings account deposits increased 16% to Rs. 66,914 crore (US$ 14.2 billion) at September 30, 2008 from Rs. 57,827 crore (US$ 12.3 billion) at September 30, 2007. Current and savings account (CASA) deposits constituted 30% of total deposits at September 30, 2008 compared to 25% at September 30, 2007. Total deposits declined marginally on a year-on-year basis due to the reduction in term deposits pursuant to the strategy adopted by the Bank. The Bank has significantly expanded its branch network to expand its reach and further enhance its deposit franchise. At October 22, 2008, the Bank had 1,400 branches and 4,530 ATMs.

Credit growth

Consolidated advances of the Bank and its banking subsidiaries and ICICI Home Finance Company increased 16% to Rs. 264,665 crore (US$ 56.4 billion) at September 30, 2008 from Rs. 227,583 crore (US$ 48.5 billion) at September 30, 2007.

International operations

ICICI Bank's international business continued to focus on:

-- Building a retail deposit base which gives the Bank access to low cost deposits on a sustainable basis.

-- Being the preferred financier and adviser for overseas expansion of Indian corporates and strengthening the global syndication network.

-- Being the preferred bank for non-resident Indians: The Bank's remittance volumes increased by 38.2% in Q2-2009 to about Rs. 11,946 crore (US$ 2.5 billion) compared to Q2-2008.

ICICI Bank Canada's profit after tax for the six months ended September 30, 2008 (H1-2009) was CAD 22 million. ICICI Bank Canada's capital position continued to be strong with a capital adequacy ratio of 15.4% at September 30, 2008. ICICI Bank Canada's deposit base increased by over CAD 1.0 billion during the quarter to CAD 4.85 billion at September 30, 2008, of which 86% was term deposits.

ICICI Bank UK's profit before mark to market impact and provision on investments was US$ 43 million for H1-2009. After the required provisioning charge in respect of its investment portfolio (including the mark-to-market impact of credit spread widening during the period), ICICI Bank UK reported a net loss of US$ 35 million. ICICI Bank UK's capital position continued to be strong with a capital adequacy ratio of 18.4% at September 30, 2008. ICICI Bank UK's deposit base was US$ 4.9 billion at September 30, 2008, of which 39% was term deposits. At September 30, 2008, ICICI Bank UK had zero net non-performing assets.

The Bank and its subsidiaries have entirely exited their non-India linked credit derivatives portfolio at no incremental loss over and above the provisions already held.

Capital adequacy

The Bank's capital adequacy at September 30, 2008 as per Reserve Bank of India's revised guidelines on Base1 II norms was 14.01% and Tier-1 capital adequacy was 11.03%, well above RBI's requirement of total capital adequacy of 9.0% and Tier-1 capital adequacy of 6.0%.

Asset quality

At September 30, 2008, the Bank's net non-performing asset ratio was 1.8% on an unconsolidated basis. The consolidated net NPA ratio of the Bank and its subsidiaries was 1.6%. The specific provisions for non-performing assets (excluding the impact of farm loan waiver) were Rs. 868 crore (US$ 185 million) in Q2-2009 compared to Rs. 878 crore (US$ 187 million) in Q1-2009.

Performance highlights of insurance subsidiaries

ICICI Prudential Life Insurance Company (ICICI Life) increased its overall market share in retail new business weighted received premiums from 12.7% in the year ended March 31, 2008 (FY2008) to 13.7% during April-August 2008. New business weighted received premium increased by 22% in H1-2009 to Rs. 2,650 crore (US$ 564 million). While ICICI Life's results reduced the consolidated profit after tax of ICICI Bank by Rs. 466 crore (US$ 99 million) in H1-2009, ICICI Life's unaudited New Business Profit (NBP)(2) in H1-2009 was Rs. 522 crore (US$ 111 million). Assets held increased to Rs. 30,107 crore (US$ 6.4 billion) at September 30, 2008.

ICICI Lombard General Insurance Company (ICICI General) increased its overall market share from 11.9% in FY2008 to 12.5% during April-August 2008. ICICI General's premiums increased 12.2% on a year-on-year basis to Rs. 1,925 crore (US$ 410 million) in H1-2009.

(1) Including direct market agency expenses.

(2) Life insurance companies worldwide make accounting losses in initial years due to business set-up and customer acquisition costs in the initial years and reserving for actuarial liability. Further, in India, amortization of acquisition costs is not permitted. These factors have resulted in statutory losses for ICICI Life since the company's inception, as its business has grown rapidly year on year. If properly priced, life insurance policies are profitable over the life of the policy, but at the time of sale, there is a loss on account of non-amortized expenses and commissions, generally termed as new business strain that emerges out of new business written during the year. New Business Profit (NBP) is an alternate measure of the underlying business profitability (as opposed to the statutory profit or loss) and relevant in the case of fast expanding companies like ICICI Life. NBP is the present value of the profits of the new business written during the year. It is based on standard economic and non-economic assumptions including risk discount rates, investment returns, mortality, expenses and persistency assumptions. Disclosure on economic assumptions are available in the annual report for the year ended March 31, 2008.

Summary Profit and Loss Statement (as per unconsolidated Indian GAAP
 accounts)
                                                           Rs. crore
----------------------------------------------------------------------
                                 Q2-2008   Q1-2009 Q2-2009      FY2008
----------------------------------------------------------------------
Net interest income(1)             1,786     2,090   2,148       7,304
----------------------------------------------------------------------
Non-interest income                1,897     2,132   2,030       7,997
----------------------------------------------------------------------
- Fee income                       1,486     1,958   1,876       6,627
----------------------------------------------------------------------
- Lease and other income             411       174     154       1,369
----------------------------------------------------------------------
Less:
----------------------------------------------------------------------
Operating expense                  1,541     1,634   1,543       6,429
----------------------------------------------------------------------
Expenses on direct market
 agents (DMAs)( 2)                   385       228     145       1,543
----------------------------------------------------------------------
Lease depreciation                    45        51      53         182
----------------------------------------------------------------------
Core operating profit              1,712     2,308   2,437       7,147
----------------------------------------------------------------------
Treasury income                      175     (594)   (153)         815
----------------------------------------------------------------------
Operating profit                   1,887     1,714   2,285       7,961
----------------------------------------------------------------------
Less: Provisions                     644    792(3)  924(4)       2,905
----------------------------------------------------------------------
Profit before tax                  1,243       922   1,361       5,056
----------------------------------------------------------------------
Less: Tax                            240       194     347         898
----------------------------------------------------------------------
Profit after tax                   1,003       728   1,014       4,158
----------------------------------------------------------------------

1. Net of premium amortisation on government securities of Rs. 210
 crore in Q2-2008, Rs. 175 crore in Q2-2009 and Rs. 898 crore in
 FY2008.
2. Represents commissions paid to direct marketing agents (DMAs) for
 origination of retail loans. These commissions are expensed upfront.
3. Includes specific provision of Rs. 878 crore (with the total
 provisions being lower due to general provision write-back and farm
 loan waiver-related write-back of Rs. 85 crore).
4. Includes specific provision for non-performing assets (excluding
 the impact of farm loan waiver) of Rs. 868 crore.
5. Prior period figures have been regrouped/re-arranged where
 necessary.

Summary Balance Sheet
                                                             Rs. crore
----------------------------------------------------------------------
                        September 30, September 30,      March 31,
                            2007           2008            2008
----------------------------------------------------------------------
Assets
----------------------------------------------------------------------
Cash & bank balances           34,025         35,613            38,041
----------------------------------------------------------------------
Advances(1)                   207,121        221,985           225,616
----------------------------------------------------------------------
Investments                   102,288         97,148           111,454
----------------------------------------------------------------------
Fixed & other assets           21,510         30,225            24,684
----------------------------------------------------------------------
Total                         364,944        384,970           399,795
----------------------------------------------------------------------
Liabilities
----------------------------------------------------------------------
Networth                       44,752         48,645            46,470
----------------------------------------------------------------------
- Equity capital                1,111          1,113             1,113
----------------------------------------------------------------------
- Reserves                     43,641         47,532            45,358
----------------------------------------------------------------------
Preference capital                350            350               350
----------------------------------------------------------------------
Deposits                      228,307        223,402           244,431
----------------------------------------------------------------------
CASA ratio                        25%            30%               26%
----------------------------------------------------------------------
Borrowings                     73,585         94,849            86,399
----------------------------------------------------------------------
Other liabilities              17,950         17,724            22,145
----------------------------------------------------------------------
Total                         364,944        384,970           399,795
----------------------------------------------------------------------

1. Consolidated advances of the Bank and its overseas banking
 subsidiaries and ICICI Home Finance Company increased 16.3% to Rs.
 264,665 crore at September 30, 2008 from Rs. 227,583 crore at
 September 30, 2007.

Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', 'expected to', etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the actual growth in demand for banking and other financial products and services in the countries that we operate or where a material number of our customers reside, our ability to successfully implement our strategy, including our use of the Internet and other technology, our rural expansion, our exploration of merger and acquisition opportunities, our ability to integrate recent or future mergers or acquisitions into our operations and manage the risks associated with such acquisitions to achieve our strategic and financial objectives, our ability to manage the increased complexity of the risks we face following our rapid international growth, future levels of impaired loans, our growth and expansion in domestic and overseas markets, the adequacy of our allowance for credit and investment losses, technological changes, investment income, our ability to market new products, cash flow projections, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to implement our dividend policy, the impact of changes in banking regulations and other regulatory changes in India and other jurisdictions on us, including on the assets and liabilities of ICICI, a former financial institution not subject to Indian banking regulations, the bond and loan market conditions and availability of liquidity amongst the investor community in these markets, the nature of credit spreads, interest spreads from time to time, including the possibility of increasing credit spreads or interest rates, our ability to roll over our short-term funding sources and our exposure to credit, market and liquidity risks as well as other risks that are detailed in the reports filed by us with the United States Securities and Exchange Commission. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

For further press queries please call Charudatta Deshpande at 91-22-2653 8208 or e-mail: charudatta.deshpande@icicibank.com.

For investor queries please call Rupesh Kumar at 91-22-2653 7126 or email at ir@icicibank.com.

1 crore = 10.0 million

US$ amounts represent convenience translations at US$1= Rs. 46.965

               AUDITED UNCONSOLIDATED FINANCIAL RESULTS

                                                     (Rupees in crore)
----------------------------------------------------------------------

                                              Three months ended
                                          ----------------------------
                                            September     September
       Sr. No.            Particulars       30, 2008      30, 2007
----------------------------------------------------------------------
                                            (Audited)     (Audited)
----------------------------------------------------------------------
                       Interest earned
          1.            (a)+(b)+(c)+(d)        7,834.98      7,516.47
                      ------------------------------------------------
                       a)
                        Interest/discount
                        on advances/bills      5,711.39      5,573.39
                      ------------------------------------------------
                       b) Income on
                        investments            1,794.06      1,818.57
                      ------------------------------------------------
                       c) Interest on
                        balances with
                        Reserve Bank of
                        India and other
                        inter-bank funds         136.09        132.40
                      ------------------------------------------------
                       d) Others                 193.44        (7.89)
----------------------------------------------------------------------
          2.           Other income            1,877.33      2,071.94
----------------------------------------------------------------------
                       A) TOTAL INCOME
          3.            (1)+(2)                9,712.31      9,588.41
----------------------------------------------------------------------
          4.           Interest expended       5,687.36      5,730.47
----------------------------------------------------------------------
          5.           Operating expenses
                        (e) + (f) + (g)        1,740.04      1,970.80
----------------------------------------------------------------------
                       e) Employee cost          488.06        519.91
----------------------------------------------------------------------
                       f) Direct
                        marketing
                        expenses                 144.50        385.43
----------------------------------------------------------------------
                       g) Other operating
                        expenses               1,107.48      1,065.46
----------------------------------------------------------------------
                       B) TOTAL
                        EXPENDITURE
                        (4)+(5)
                      (excluding
                       provisions and
          6.           contingencies)          7,427.40      7,701.27
----------------------------------------------------------------------
          7.           OPERATING PROFIT
                        (A-B)
                      (Profit before
                       provisions and
                       contingencies)          2,284.91      1,887.14
----------------------------------------------------------------------
          8.           Provisions (other
                        than tax) and
                        contingencies            923.53        644.49
----------------------------------------------------------------------
          9.           Exceptional items              -             -
----------------------------------------------------------------------
         10.           PROFIT / LOSS FROM
                        ORDINARY
                        ACTIVITIES BEFORE
                        TAX (7)-(8)-(9)        1,361.38      1,242.65
----------------------------------------------------------------------
         11.           Tax expense (a) +
                        (b)                      347.17        240.05
----------------------------------------------------------------------
                       a) Current period
                        tax                      579.63        417.72
----------------------------------------------------------------------
                       b) Deferred tax
                        adjustment             (232.46)      (177.67)
----------------------------------------------------------------------
                       NET PROFIT / LOSS
                        FROM ORDINARY
                        ACTIVITIES (10)-
         12.            (11)                   1,014.21      1,002.60
----------------------------------------------------------------------
         13.           Extraordinary
                        items (net of tax
                        expense)                      -             -
----------------------------------------------------------------------
                       NET PROFIT / LOSS
                        FOR THE
         14.            PERIOD(12)-(13)        1,014.21      1,002.60
----------------------------------------------------------------------
         15.           Paid-up equity
                        share capital
                        (face value Rs.
                        10/-)                  1,113.29      1,110.66
----------------------------------------------------------------------
         16.           Reserves excluding
                        revaluation
                        reserves              47,531.95     43,641.32
----------------------------------------------------------------------
         17.           Analytical ratios
----------------------------------------------------------------------
                       (i) Percentage of
                        shares held by
                        Government of
                        India                         -             -
----------------------------------------------------------------------
                       (ii) Capital
                        adequacy ratio           14.01%        16.76%
----------------------------------------------------------------------
                       (iii) Earnings per
                        share (EPS) for
                        the period
----------------------------------------------------------------------
                         Basic EPS before
                          and after
                          extraordinary
                          items net of
                          tax expenses
                          (not annualised
                          for quarter/
                          period) (in
                          Rs.)                     9.11          9.13
----------------------------------------------------------------------
                         Diluted EPS
                          before and
                          after
                          extraordinary
                          items net of
                          tax expenses
                          (not annualised
                          for quarter/
                          period) (in
                          Rs.)                     9.09          9.08
----------------------------------------------------------------------
         18.           NPA Ratio
----------------------------------------------------------------------
                       i) Gross non-
                        performing
                        advances (net of
                        technical write-
                        off)(1)                9,501.48      5,931.53
----------------------------------------------------------------------
                       ii) Net non-
                        performing
                        advances(1)            4,232.93      2,970.94
----------------------------------------------------------------------
                       iii) % of gross
                        non-performing
                        advances (net of
                        technical write-
                        off) to gross
                        advances (net of
                        write-off)                4.18%         2.82%
----------------------------------------------------------------------
                       iv) % of net non-
                        performing
                        advances to net
                        advances(2)               1.91%         1.43%
----------------------------------------------------------------------
         19.           Return on assets
                        (annualised)              1.05%         1.12%
----------------------------------------------------------------------
         20.           Aggregate of non-
                        promoter
                        shareholding
----------------------------------------------------------------------
                       1. No. of shares   1,113,249,042 1,111,912,138
----------------------------------------------------------------------
                       2. Percentage of
                        shareholding                100           100
----------------------------------------------------------------------
         21.          Deposits               223,401.72    228,306.63
----------------------------------------------------------------------
         22.          Advances               221,984.67    207,121.07
----------------------------------------------------------------------
         23.          Total assets           384,970.39    364,944.21
----------------------------------------------------------------------

                                   Half year ended        Year ended
                             ---------------------------  March 31,
                               September     September        2008
 Sr. No.     Particulars       30, 2008      30, 2007
----------------------------------------------------------------------
                               (Audited)     (Audited)     (Audited)
----------------------------------------------------------------------
          Interest earned
   1.      (a)+(b)+(c)+(d)       15,726.78     14,847.30     30,788.34
         -------------------------------------------------------------
          a)
           Interest/discount
           on advances/bills     11,465.55     11,022.63     22,600.99
         -------------------------------------------------------------
          b) Income on
           investments            3,682.28      3,497.28      7,466.01
         -------------------------------------------------------------
          c) Interest on
           balances with
           Reserve Bank of
           India and other
           inter-bank funds         265.04        284.46        611.99
         -------------------------------------------------------------
          d) Others                 313.91         42.93        109.35
----------------------------------------------------------------------
   2.     Other income            3,415.51      4,022.53      8,810.77
----------------------------------------------------------------------
          A) TOTAL INCOME
   3.      (1)+(2)               19,142.29     18,869.83     39,599.11
----------------------------------------------------------------------
   4.     Interest expended      11,489.41     11,582.35     23,484.24
----------------------------------------------------------------------
   5.     Operating expenses
           (e) + (f) + (g)        3,653.95      3,876.12      8,154.18
----------------------------------------------------------------------
          e) Employee cost        1,011.28      1,041.75      2,078.90
----------------------------------------------------------------------
          f) Direct
           marketing
           expenses                 372.83        768.09      1,542.74
----------------------------------------------------------------------
          g) Other operating
           expenses               2,269.84      2,066.28      4,532.54
----------------------------------------------------------------------
          B) TOTAL
           EXPENDITURE
           (4)+(5)
         (excluding
          provisions and
   6.     contingencies)         15,143.36     15,458.47     31,638.42
----------------------------------------------------------------------
   7.     OPERATING PROFIT
           (A-B)
         (Profit before
          provisions and
          contingencies)          3,998.93      3,411.36      7,960.69
----------------------------------------------------------------------
   8.     Provisions (other
           than tax) and
           contingencies          1,716.02      1,196.76      2,904.59
----------------------------------------------------------------------
   9.     Exceptional items              -             -             -
----------------------------------------------------------------------
   10.    PROFIT / LOSS FROM
           ORDINARY
           ACTIVITIES BEFORE
           TAX (7)-(8)-(9)        2,282.91      2,214.60      5,056.10
----------------------------------------------------------------------
   11.    Tax expense (a) +
           (b)                      540.69        436.92        898.37
----------------------------------------------------------------------
          a) Current period
           tax                      944.27        745.33      1,611.73
----------------------------------------------------------------------
          b) Deferred tax
           adjustment             (403.58)      (308.41)      (713.36)
----------------------------------------------------------------------
          NET PROFIT / LOSS
           FROM ORDINARY
           ACTIVITIES (10)-
   12.     (11)                   1,742.22      1,777.68      4,157.73
----------------------------------------------------------------------
   13.    Extraordinary
           items (net of tax
           expense)                      -             -             -
----------------------------------------------------------------------
          NET PROFIT / LOSS
           FOR THE
   14.     PERIOD(12)-(13)        1,742.22      1,777.68      4,157.73
----------------------------------------------------------------------
   15.    Paid-up equity
           share capital
           (face value Rs.
           10/-)                  1,113.29      1,110.66      1,112.68
----------------------------------------------------------------------
   16.    Reserves excluding
           revaluation
           reserves              47,531.95     43,641.32     45,357.53
----------------------------------------------------------------------
   17.    Analytical ratios
----------------------------------------------------------------------
          (i) Percentage of
           shares held by
           Government of
           India                         -             -             -
----------------------------------------------------------------------
          (ii) Capital
           adequacy ratio           14.01%        16.76%        13.97%
----------------------------------------------------------------------
          (iii) Earnings per
           share (EPS) for
           the period
----------------------------------------------------------------------
            Basic EPS before
             and after
             extraordinary
             items net of
             tax expenses
             (not annualised
             for quarter/
             period) (in
             Rs.)                    15.65         17.79         39.39
----------------------------------------------------------------------
            Diluted EPS
             before and
             after
             extraordinary
             items net of
             tax expenses
             (not annualised
             for quarter/
             period) (in
             Rs.)                    15.60         17.68         39.15
----------------------------------------------------------------------
   18.    NPA Ratio
----------------------------------------------------------------------
          i) Gross non-
           performing
           advances (net of
           technical write-
           off)(1)                9,501.48      5,931.53      7,579.54
----------------------------------------------------------------------
          ii) Net non-
           performing
           advances(1)            4,232.93      2,970.94      3,490.55
----------------------------------------------------------------------
          iii) % of gross
           non-performing
           advances (net of
           technical write-
           off) to gross
           advances (net of
           write-off)                4.18%         2.82%         3.30%
----------------------------------------------------------------------
          iv) % of net non-
           performing
           advances to net
           advances(2)               1.91%         1.43%         1.55%
----------------------------------------------------------------------
   19.    Return on assets
           (annualised)              0.89%         1.01%         1.12%
----------------------------------------------------------------------
   20.    Aggregate of non-
           promoter
           shareholding
----------------------------------------------------------------------
          1. No. of shares   1,113,249,042 1,111,912,138 1,112,687,495
----------------------------------------------------------------------
          2. Percentage of
           shareholding                100           100           100
----------------------------------------------------------------------
   21.   Deposits               223,401.72    228,306.63    244,431.05
----------------------------------------------------------------------
   22.   Advances               221,984.67    207,121.07    225,616.08
----------------------------------------------------------------------
   23.   Total assets           384,970.39    364,944.21    399,795.08
----------------------------------------------------------------------

1. At June 30, 2008 the gross non performing advances (net of
 technical write-off) were Rs. 8,511.36 crore and the net non
 performing advances were Rs. 4,033.57 crore.
2. The percentage of net non-performing customer assets to net
 customer assets (includes advances and credit substitutes) was 1.83%
 at September 30, 2008.




           Sr. No.                              Three months ended
                                              ------------------------
                                               September   September
                               Particulars     30, 2008    30, 2007
----------------------------------------------------------------------
                                              (Unaudited) (Unaudited)
----------------------------------------------------------------------
             1.              Total Income       15,590.46   13,850.57
----------------------------------------------------------------------
             2.              Net
                              Profit/(loss)
                              for the period       651.48      897.92
----------------------------------------------------------------------
             3.              Earnings per
                              share (EPS)
----------------------------------------------------------------------
                                 EPS for the
                                  period
                             (not annualised
                              for
                              quarter/period)
                              (in Rs.)(basic)        5.85        8.18
----------------------------------------------------------------------
                                 EPS for the
                                  period
                             (not annualised
                              for
                              quarter/period)
                              (in
                              Rs.)(diluted)          5.84        8.13
----------------------------------------------------------------------


                                     CONSOLIDATED FINANCIAL RESULTS
                                                     (Rupees in crore)
      Sr. No.                            Half year ended       Year
                                     -----------------------   ended
                                      September   September  March 31,
                      Particulars     30, 2008    30, 2007      2008
----------------------------------------------------------------------
                                     (Unaudited) (Unaudited) (Audited)
----------------------------------------------------------------------
         1.         Total Income       30,234.76   26,580.39 60,053.08
----------------------------------------------------------------------
         2.         Net
                     Profit/(loss)
                     for the period     1,268.75    1,642.29  3,398.23
----------------------------------------------------------------------
         3.         Earnings per
                     share (EPS)
----------------------------------------------------------------------
                        EPS for the
                         period
                    (not annualised
                     for
                     quarter/period)
                     (in Rs.)(basic)       11.40       16.44     32.19
----------------------------------------------------------------------
                        EPS for the
                         period
                    (not annualised
                     for
                     quarter/period)
                     (in
                     Rs.)(diluted)         11.36       16.34     32.00
----------------------------------------------------------------------

The consolidated financial results include results of ICICI Bank
 Limited and its subsidiaries and other consolidating entities of
 which for the half year ended September 30, 2008, the results of
 following have been audited: ICICI Bank Limited, ICICI Bank UK PLC.,
 ICICI Prudential Life Insurance Company Limited, ICICI International
 Limited, ICICI Securities Limited, ICICI Prudential Asset Management
 Company Limited, ICICI Securities Primary Dealership Limited, ICICI
 Eco-Net Internet & Technology Fund, ICICI Equity Fund, ICICI Emerging
 Sectors Fund, ICICI Venture Funds Management Company Limited and
 ICICI Strategic Investments Fund.
SEGMENTAL RESULTS OF ICICI BANK LIMITED FOR THE PERIOD ENDED SEPTEMBER
                               30, 2008
                                                     (Rupees in crore)
----------------------------------------------------------------------
Sr. No.      Particulars        Three months    Half year
                                     ended         ended   Year ended
----------------------------------------------------------------------

                                September 30,   September   March 31,
                                     2008        30, 2008     2008
----------------------------------------------------------------------
                                  (Audited)     (Audited)   (Audited)
----------------------------------------------------------------------
  1.   Segment Revenue
----------------------------------------------------------------------
   a   Retail Banking                  6,078.27  12,155.85   24,418.54
----------------------------------------------------------------------
   b   Wholesale Banking               6,414.43  13,103.41   24,949.35
----------------------------------------------------------------------
   c   Treasury                        7,020.33  13,798.18   29,098.26
----------------------------------------------------------------------
   d   Other Banking                     201.85     278.02      274.92
----------------------------------------------------------------------
       Total revenue                  19,714.88  39,335.46   78,741.07
----------------------------------------------------------------------
       Less: Inter Segment
        Revenue                       10,002.57  20,193.17   39,141.96
----------------------------------------------------------------------
       Income from Operations          9,712.31  19,142.29   39,599.11
----------------------------------------------------------------------
  2.   Segmental Results (i.e.
        Profit before tax)
----------------------------------------------------------------------
   a   Retail Banking                    276.69     405.39      947.24
----------------------------------------------------------------------
   b   Wholesale Banking               1,106.15   2,296.78    3,574.68
----------------------------------------------------------------------
   c   Treasury                        (131.58)   (540.91)      513.49
----------------------------------------------------------------------
   d   Other Banking                     110.12     121.65       20.69
----------------------------------------------------------------------
       Total segment results           1,361.38   2,282.91    5,056.10
----------------------------------------------------------------------
       Unallocated expenses                   -          -           -
----------------------------------------------------------------------
       Profit before tax               1,361.38   2,282.91    5,056.10
----------------------------------------------------------------------
  3.   Capital Employed (i.e.
        Segment Assets -
        Segment Liabilities)
----------------------------------------------------------------------
   a   Retail Banking                (8,860.48) (8,860.48)  (4,045.54)
----------------------------------------------------------------------
   b   Wholesale Banking              15,708.43  15,708.43 (11,423.26)
----------------------------------------------------------------------
   c   Treasury                       36,626.76  36,626.76   56,694.99
----------------------------------------------------------------------
   d   Other Banking                   1,032.38   1,032.38      669.30
----------------------------------------------------------------------
   e   Unallocated                     4,488.15   4,488.15    4,924.72
----------------------------------------------------------------------
       Total                          48,995.24  48,995.24   46,820.21
----------------------------------------------------------------------
SEGMENTAL RESULTS OF ICICI BANK LIMITED FOR THE PERIOD ENDED SEPTEMBER
                               30, 2007

                                                     (Rupees in crore)
----------------------------------------------------------------------
                                    Three months ended Half year ended
Sr.           Particulars           ----------------------------------
 No.                                September 30, 2007 September 30,
                                                             2007
----------------------------------------------------------------------
                                        (Audited)         (Audited)
----------------------------------------------------------------------
 1. Segment Revenue
----------------------------------------------------------------------
 a  Consumer and Commercial Banking           7,495.21       14,930.36
----------------------------------------------------------------------
 b  Investment Banking                        2,441.89        4,712.76
----------------------------------------------------------------------
    Total revenue                             9,937.10       19,643.12
----------------------------------------------------------------------
    Less: Inter Segment Revenue                 348.69          773.29
----------------------------------------------------------------------
    Income from Operations                    9,588.41       18,869.83
----------------------------------------------------------------------
    Segment Results (i.e. Profit
 2.  before tax)
----------------------------------------------------------------------
 a  Consumer and Commercial Banking             588.61        1,092.32
----------------------------------------------------------------------
 b  Investment Banking                          663.64        1,141.48
----------------------------------------------------------------------
    Total segment results                     1,252.25        2,233.80
----------------------------------------------------------------------
    Unallocated expenses                          9.60           19.20
----------------------------------------------------------------------
    Profit before tax                         1,242.65        2,214.60
----------------------------------------------------------------------
    Capital Employed (i.e. Segment
 3.  Assets - Segment Liabilities)
----------------------------------------------------------------------
 a  Consumer and Commercial Banking        (28,165.49)     (28,165.49)
----------------------------------------------------------------------
 b  Investment Banking                       68,470.67       68,470.67
----------------------------------------------------------------------
    Total capital employed                   40,305.18       40,305.18
----------------------------------------------------------------------

Notes on segmental results

1. The disclosure on segmental reporting has been modified pursuant to Reserve Bank of India (RBI) circular no. DBOD.No.BP.BC.81/21.04.018/2006-07 dated April 18, 2007 on guidelines on enhanced disclosure on "Segmental Reporting" which is effective from the reporting period ended March 31, 2008. The segmental results for three months ended September 30, 2007 and for the half year ended September 30, 2007 as per the revised guidelines have not been prepared and hence are not comparable.

2. "Retail Banking" includes exposures which satisfy the four criteria of orientation, product, granularity and low value of individual exposures for retail exposures laid down in Basel Committee on Banking Supervision document "International Convergence of Capital Measurement and Capital Standards: A Revised Framework".

3. "Wholesale Banking" includes all advances to trusts, partnership firms, companies and statutory bodies, which are not included under Retail Banking.

4. "Treasury" includes the entire investment portfolio of the Bank.

5. "Other Banking" includes hire purchase and leasing operations and also includes gain/loss on sale of banking & non-banking assets and other items not attributable to any particular business segment.

Notes

1. The financials have been prepared in accordance with Accounting Standard ("AS") 25 on "Interim Financial Reporting".

2. During the three months ended September 30, 2008, the Bank allotted 1,56,781 equity shares of Rs. 10.00 each pursuant to exercise of employee stock options.

3. Status of equity investors' complaints / grievances for the three months ended September 30, 2008:

   Opening balance           Additions        Disposals      Closing
                                                              balance
----------------------------------------------------------------------
          5                     447              448            4
----------------------------------------------------------------------

4. Provision for current period tax includes Rs. 9.28 crore towards provision for fringe benefit tax for the three months ended September 30, 2008 (Rs. 21.77 crore for the half-year ended September 30, 2008).

5. RBI vide its circular DBOD.No.BP.BC.90/20.06.001/2006-07 dated April 27, 2007 had advised banks having operational presence outside India to compute capital adequacy ratio (CAR) as per the revised capital adequacy framework (Basel II) effective March 31, 2008. Accordingly, the CAR for September 30, 2008 and March 31, 2008 is as per Basel II framework and for September 30, 2007, is as per the earlier framework.

6. Pursuant to the RBI clarification, USD 750 million of foreign currency bonds raised in January 2007 for Upper Tier II capital have been included in CAR computation as at September 30, 2008.

7. Previous period / year figures have been regrouped / reclassified where necessary to conform to current period classification.

8. The above financial results have been approved by the Board of Directors at its meeting held on October 27, 2008.

9. The above financial results are audited by the statutory auditors, B S R & Co., Chartered Accountants.

10. Rs. 1 crore = Rs. 10 million.

Place : Mumbai                         Chanda D. Kochhar
Date : October 27, 2008          Joint Managing Director & CFO

Contact:

ICICI Bank Limited
Charudatta Deshpande, 91-22-2653 8208 (press queries)
charudatta.deshpande@icicibank.com
Rupesh Kumar, 91-22-2653 7126 (investor queries)
ir@icicibank.com

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