ICICI Bank Limited ICICI Bank Towers Bandra Kurla Complex Mumbai 400 051

 

 

News Release

October 30, 2009

 

 

1 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. 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 companies in their growth phase. 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 is available in the annual report for the year ended March 31, 2009.

 

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	ICICI Bank Limited ICICI Bank Towers Bandra Kurla Complex Mumbai 400 051

 

 

Summary Profit and Loss Statement (as per unconsolidated Indian GAAP accounts)

 

Rs. crore

	FY 2009		Q1-2009	Q2-2009	H1-2009	Q1-2010	Q2-2010	H1-2010
Net interest income	8,367		2,090	2,148	4,238	1,985	2,036	4,021
Non-interest income	7,603		1,538	1,877	3,415	2,090	1,824	3,914
- Fee income	6,524		1,958	1,876	3,834	1,319	1,387	2,706
- Lease and other income	636		174	154	328	57	140	197
- Treasury income	443		(594)	(153)	(747)	714	297	1,011
Less:
Operating expense	6,306		1,634	1,543	3,177	1,467	1,358	2,825
Direct market agent (DMA)1 expense	529		228	145	373	27	21	48
Lease depreciation	210		52	52	104	52	46	98
Operating profit	8,925		1,714	2,285	3,999	2,529	2,435	4,964
Less: Provisions	3,808		792	924	1,716	1,324	1,071	2,395
Profit before tax	5,117		922	1,361	2,283	1,205	1,364	2,569
Less: Tax	1,359		194	347	541	327	324	651
Profit after tax	3,758		728	1,014	1,742	878	1,040	1,918

1.	Represents commissions paid to direct marketing agents (DMAs) for origination of retail loans. These commissions are expensed upfront.

2.	Prior period figures have been re-grouped/re-arranged where necessary.

 

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	ICICI Bank Limited ICICI Bank Towers Bandra Kurla Complex Mumbai 400 051

 

 

 Summary Balance Sheet

Rs. crore

	March 31, 2009	September 30, 2008	September 30, 2009
Assets
Cash & bank balances	29,966	35,613	29,267
Advances	218,311	221,985	190,860
Investments	103,058	97,147	119,965
Fixed & other assets	27,966	30,225	26,282
Total	379,301	384,970	366,374
Liabilities
Networth	49,533	48,645	51,258
- Equity capital	1,113	1,113	1,114
- Reserves	48,420	47,532	50,144
Preference capital	350	350	350
Deposits	218,348	223,402	197,832
CASA ratio	28.7%	30.0%	36.9%
Borrowings	92,805	94,849	99,773
Other liabilities	18,265	17,724	17,161
Total	379,301	384,970	366,374

All financial and other information in this press release, 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 this release, been filed with the stock exchanges in India where ICICI Bank’s 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.   

Except for the historical information contained herein, statements in this release which contain words or phrases such as will” , “would”, “aim”, “aimed”, “will likely result”, “is likely”, “are likely”, “believe”, “expect”, “expected to”, “will continue”, “will achieve”, “anticipate”, “estimate”, “estimating”, “intend”, “plan”, “contemplate”, “seek to”, “seeking to”, “trying to”, “target”, “propose to”, “future”, “objective”, “goal”, “project”, “should”, “can”, “could”, “may”, “will pursue”, 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 in or where a material number of our customers reside, our ability to successfully implement our strategy, including our retail deposit growth strategy, 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

 

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	ICICI Bank Limited ICICI Bank Towers Bandra Kurla Complex Mumbai 400 051

 

 

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 non performing and restructured 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 state of the global financial system and systemic risks, the bond and loan market conditions and availability of liquidity amongst the investor community in these markets, the nature of credit spreads and 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. 48.10

 

 

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Item 2

 

B S R & Co. (Registered)    Chartered ccountants

KPMG House Kamala Mills Compound 448, Senapati Bapat Marg Lower Parel, Mumbai – 400 013 India

Telephone Fax

+91(22) 3989 6000 +91(22) 3983 6000

 

Auditors’ Report on quarterly and year to date Financial Results of ICICI Bank Limited pursuant to the Clause 41 of the Listing Agreement

 

To the Board of Directors

ICICI Bank Limited

 

l.

We have audited the quarterly financial results of ICICI Bank Limited (‘the Bank’) for the quarter ended 30 September 2009 and the year to date results for the period 1 April 2009 to 30 September 2009, attached herewith, being submitted by the Bank pursuant to the requirement of clause 41 of the listing agreement. These quarterly financial results as well as the year to date financial results have been prepared from interim financial statements, which are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these financial results based on our audit of such interim financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard (AS) 25, Interim Financial Reporting, issued pursuant to the Companies (Accounting Standards) Rules, 2006 as per Section 211(3C) of the Companies Act, 1956.

 

2.

We conducted our audit in accordance with the auditing standards generally accepted in India.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatement(s).  An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.

 

3.

We did not audit the financial statements of the Singapore, Bahrain and Hong Kong branches of the Bank, whose financial statements reflect total assets of Rs 775,928.9 million as at 30 September 2009 and total revenues of Rs 11,619.4 million for the three months then ended and total revenues of Rs 23,940.2 million for six months then ended. These financial statements have been audited by other auditors, duly qualified to act as auditors in the country of incorporation of the said branches, whose reports have been furnished to us, and which were relied upon by us for our opinion on the financial statements of the Bank.

 

In our opinion and to the best of our information and according to the explanations given to us these quarterly financial results:

 

a)	have been presented in accordance with the requirements of clause 41 of the Listing Agreement in this regard; and

 

b)	give a true and fair view of the net profit for the quarter ended 30 September 2009 as well as the year to date results for the period from 1 April 2009 to 30 September 2009.

 

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B S R & Co.

Auditors’ Report (continued)

ICICI Bank Limited

 

Further, we also report that we have, on the basis of the books of account and other records and information and explanations given to us by management of the Bank, also verified the number of shares as well as percentage of shareholdings in respect of aggregate amount of non promoter shareholdings, as furnished by the Bank in terms of clause 35 of the listing agreement and found the same to be correct.

 

	For B S R & Co.
		Chartered Accountants
		/s/ Akeel Master
		Akeel Master
		Partner
		Membership No: 046768

 

 

 

Mumbai

30 October 2009