FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of December, 2022
Commission File Number: 001-15002
ICICI Bank Limited
(Translation of registrant’s name into English)
ICICI Bank Towers,
Bandra-Kurla Complex
Mumbai, India 400 051
(Address of principal executive office)
Indicate by check mark whether the registrant files
or will file
annual reports under cover Form 20-F or Form 40-F.
Indicate by check mark if the registrant is submitting
the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting
the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the
information
contained in this Form, the Registrant is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934:
If “Yes” is marked, indicate below the
file number assigned to the registrant in
connection with Rule 12g 3-2(b): Not Applicable
Table of Contents
Item |
|
|
|
1.
|
Form 6-K dated December 27, 2022
|
2. |
Semi-Annual Report filed with the Kanto Local Finance Bureau, Japan on December 23, 2022 |
Item
1
December 27, 2022
The United States
Securities and Exchange Commission
Washington D. C. 20549
United States of America
Attn.: Filing Desk
Dear Sirs,
IBN
ICICI Bank Limited (the ‘Company’)
Report on Form 6-K
On behalf of the Company, I am enclosing for filing,
Company's Report on Form 6-K dated December 27, 2022 with respect to the Semi Annual Report filed with Kanto Local Finance Bureau, Japan
on December 23, 2022.
This is for your reference and records.
Yours sincerely,
For ICICI Bank Limited
Vivek Ranjan
Chief Manager
Encl: as above
ICICI Bank Limited
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051, India.
|
Tel.: (91-22) 2653 1414
Fax: (91-22) 2653 1122
Website www.icicibank.com
CIN.: L65190GJ1994PLC021012
|
Regd. Office: ICICI Bank Tower,
Near Chakli Circle,
Old Padra Road
Vadodara 390007. India
|
Item 2
[Form No. 10]
Cover Page
Document Name: |
Semi-Annual Report |
Filed with: |
Director of Kanto Local Finance Bureau |
Date of Filing: |
December 23, 2022 |
For Six-month Period: |
From April 1, 2022 through September 30, 2022 |
Corporate Name: |
ICICI Bank Limited |
Name and Title of Representative: |
Nilanjan Sinha |
|
General Counsel |
Location of Registered Office: |
ICICI Bank Tower, Near Chakli Circle, Old Padra Road, Vadodara 390 007, Gujarat, India |
Personal Name or Corporate Name |
Hironori Shibata, Attorney-at-Law |
of Attorney-in-Fact: |
|
Address or Location of |
Anderson Mori & Tomotsune |
Attorney-in-Fact: |
Otemachi Park Building |
|
1-1, Otemachi 1-chome |
|
Chiyoda-ku, Tokyo |
|
|
Telephone Number: |
03-6775-1039 |
Name of Person to Contact with: |
Nozomu Shiba, Attorney-at-Law |
|
Shunpei Hori, Attorney-at-Law |
Place to Contact with: |
Anderson Mori & Tomotsune |
|
Otemachi Park Building |
|
1-1, Otemachi 1-chome |
|
Chiyoda-ku, Tokyo |
Telephone Number: |
03-6775-1779 |
Place(s) for Public Inspection: |
Not applicable. |
| 1. | In this Semi-Annual Report, all references to "we", "our" and "us" are,
unless the context otherwise requires, to ICICI Bank Limited on a standalone basis.
References to specific data applicable to particular subsidiaries or other consolidated entities are made by reference to the name of
that particular entity. References to "ICICI Bank" or "the Bank" are, as the context requires, to ICICI Bank Limited
on a standalone basis. References to “the Group” are to ICICI Bank Limited and its consolidated subsidiaries and other consolidated
entities under generally accepted accounting principles in India (“Indian GAAP”). |
| 2. | In this document, references to "U.S. $" are to United States dollars, references to "Rs."
are to Indian rupees, and references to "¥" or "JPY" are to Japanese yen. For purposes of readability, certain
U.S. dollar amounts have been converted into Japanese yen at the mean of the telegraphic transfer spot selling and buying rates vis-à-vis
customers as at December 1, 2022 as quoted by MUFG Bank, Ltd. in Tokyo (U.S. $ 1 = ¥ 137.09), and certain rupee amounts have been
converted into Japanese yen at the reference rate of Rs. 1 = ¥ 1.85 based on the foreign exchange rate as announced by MUFG Bank,
Ltd. in Tokyo as at December 1, 2022. |
| 3. | The fiscal year of the Bank commences on April 1 and ends at March 31 of each year. References to a particular
"fiscal" year are to our fiscal year ending at March 31 of that particular year. For example, "fiscal 2023" refers
to the year beginning on April 1, 2022 and ending at March 31, 2023. |
| 4. | Where figures in tables have been rounded, the totals may not necessarily agree with the arithmetic sum
of the figures. |
TABLE
OF CONTENTS (for reference purpose only)
COVER
SHEET
PART
I. |
CORPORATE INFORMATION |
1 |
I. |
SUMMARY OF LEGAL AND OTHER SYSTEMS IN HOME COUNTRY |
1 |
II. |
OUTLINE OF COMPANY |
2 |
|
1. |
Trends in Major Business Indices, etc. |
2 |
|
2. |
Nature of Business |
10 |
|
3. |
State of Affiliated Companies |
10 |
|
4. |
State of Employees |
10 |
III. |
STATEMENT OF BUSINESS |
10 |
|
1. |
Management Policy, Business Environment and Problems to be Coped with, etc. |
10 |
|
|
|
|
|
2. |
Risks in Business, etc. |
10 |
|
3. |
Management’s Analysis of Financial Condition, Operating Results and Statement of Cash Flows |
10 |
|
|
|
|
|
4. |
Material Contracts Relating to Management, etc. |
25 |
|
5. |
Research and Development Activities |
25 |
IV. |
STATEMENT OF FACILITIES |
26 |
|
1. |
State of Major Facilities |
26 |
|
2. |
Plan for Installation, Retirement, etc. of Facilities |
26 |
V. |
STATEMENT OF FILING COMPANY |
27 |
|
1. |
State of Shares, etc. |
27 |
|
(1) |
Total Number of Shares, etc. |
27 |
|
|
(i) Total Number of Shares |
27 |
|
|
(ii) Issued Shares |
27 |
|
(2) |
State of Exercise of Bonds with Stock Acquisition Rights etc. with Moving Strike Clause |
27 |
|
|
|
|
|
(3) |
Total Number of Issued Shares and Capital Stock |
28 |
|
|
(4) Major Shareholders |
29 |
|
2. |
Statement of Directors and Officers |
33 |
VI. |
FINANCIAL CONDITION |
39 |
|
1. |
Interim Financial Statements |
39 |
|
2. |
Other Information |
42 |
|
|
(1) Legal and Regulatory Proceedings |
42 |
|
|
(2) Subsequent Events |
45 |
|
3. |
Major Differences between United States and Japanese Accounting Principles and Practices |
45 |
|
4. |
Major Differences between Indian and Japanese Accounting Principles and Practices |
50 |
VII. |
TRENDS IN FOREIGN EXCHANGE RATES |
57 |
VIII. |
REFERENCE INFORMATION OF FILING COMPANY |
58 |
PART II. |
INFORMATION ON GUARANTY COMPANY OF FILING COMPANY, ETC. |
59 |
I. |
INFORMATION ON GUARANTY COMPANY |
59 |
II. |
INFORMATION ON COMPANIES OTHER THAN GUARANTY COMPANY |
59 |
|
|
|
III. |
INFORMATION ON BUSINESS INDICES, ETC. |
59 |
PART I. |
CORPORATE INFORMATION |
I. |
SUMMARY OF LEGAL AND OTHER SYSTEMS IN HOME COUNTRY |
There has been no material
change in legal and other systems in India, since the last Annual Securities Report ("ASR") filed on September 28, 2022 for
fiscal 2022.
1. |
Trends in Major Business Indices, etc. |
The following data is derived
from the audited and unaudited, standalone and consolidated financial results of ICICI Bank Limited prepared in accordance with generally
accepted accounting principles in India (“Indian GAAP”).
Standalone financial results
(Rs. in crore/JPY in million)
Sr. No. |
Particulars |
Six months
ended |
Year
ended |
September
30, 2022 |
September
30, 2022 |
September
30, 2021 |
September
30, 2020 |
March
31,
2022 |
March
31,
2022 |
March
31,
2021 |
|
|
(Unaudited) |
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
(Audited) |
1. |
Interest earned (a)+(b)+(c)+(d) |
Rs. 49,704.58 |
JPY 919,534.73 |
Rs. 41,617.05 |
Rs. 39,546.81 |
Rs. 86,374.55 |
JPY 1,597,929.18 |
Rs. 79,118.27 |
|
a) Interest/discount on advances/bills |
37,563.19 |
694,919.02 |
30,722.67 |
28,614.58 |
63,833.56 |
1,180,920.86 |
57,288.81 |
|
b) Income on investments |
9,705.14 |
179,545.09 |
8,139.58 |
8,504.49 |
16,409.27 |
303,571.50 |
16,539.78 |
|
c) Interest on balances with Reserve Bank of India and other inter-bank funds |
829.68
|
15,349.08 |
400.27 |
865.95 |
1,560.83 |
28,875.36 |
1,631.91 |
|
d) Others |
1,606.57 |
29,721.55 |
2,354.53 |
1,561.79 |
4,570.89 |
84,561.47 |
3,657.77 |
2. |
Other income |
9,720.07 |
179,821.30 |
8,793.04 |
10,170.91 |
18,517.53 |
342,574.31 |
18,968.53 |
3. |
TOTAL INCOME (1)+(2) |
59,424.65 |
1,099,356.03 |
50,410.09 |
49,717.72 |
104,892.08 |
1,940,503.48 |
98,086.80 |
4. |
Interest expended |
21,707.75 |
401,593.38 |
18,991.55 |
20,900.97 |
38,908.45 |
719,806.33 |
40,128.84 |
5. |
Operating expenses (e)+(f) |
15,727.69 |
290,962.27 |
12,609.42 |
9,779.21 |
26,733.32 |
494,566.42 |
21,560.83 |
|
e) Employee cost |
5,737.74 |
106,148.19 |
4,758.98 |
4,133.42 |
9,672.75 |
178,945.88 |
8,091.78 |
|
f) Other operating expenses |
9,989.95 |
184,814.08 |
7,850.44 |
5,645.79 |
17,060.57 |
315,620.55 |
13,469.05 |
6.
|
TOTAL EXPENDITURE (4)+(5)
(excluding provisions and contingencies)
|
37,435.44 |
692,555.64 |
31,600.97 |
30,680.18 |
65,641.77 |
1,214,372.75 |
61,689.67 |
7.
|
OPERATING PROFIT (3)-(6)
(Profit before provisions and contingencies)
|
21,989.21
|
406,800.39 |
18,809.12 |
19,037.54 |
39,250.31 |
726,130.74 |
36,397.13 |
8.
|
Provisions (other than tax) and contingencies (refer note no. 4) |
2,788.34
|
51,584.29 |
5,565.17 |
10,589.22 |
8,641.42 |
159,866.27 |
16,214.41 |
9.
|
PROFIT FROM ORDINARY ACTIVITIES BEFORE EXCEPTIONAL
ITEMS AND TAX (7)-(8)
|
19,200.87 |
355,216.10 |
13,243.95 |
8,448.32 |
30,608.89 |
566,264.47 |
20,182.72 |
10. |
Exceptional items |
.. |
.. |
.. |
.. |
.. |
.. |
.. |
11.
|
PROFIT FROM ORDINARY ACTIVITIES BEFORE TAX (9)-(10) |
19,200.87
|
355,216.10 |
13,243.95 |
8,448.32 |
30,608.89 |
566,264.47 |
20,182.72 |
12. |
Tax expense (g)+(h) |
4,738.09 |
87,654.67 |
3,116.98 |
1,597.84 |
7,269.40 |
134,483.90 |
3,990.04 |
|
g) Current period tax |
4,844.35 |
89,620.48 |
2,879.65 |
1,870.88 |
6,297.68 |
116,507.08 |
4,665.66 |
|
h) Deferred tax |
(106.26) |
(1,965.81) |
237.33 |
(273.04) |
971.72 |
17,976.82 |
(675.62) |
13.
|
NET PROFIT FROM ORDINARY ACTIVITIES AFTER TAX (11)-(12) |
14,462.78 |
267,561.43 |
10,126.97 |
6,850.48 |
23,339.49 |
431,780.57 |
16,192.68 |
14. |
Extraordinary items (net of tax expense) |
.. |
.. |
.. |
.. |
.. |
.. |
.. |
15. |
NET PROFIT FOR THE PERIOD (13)-(14) |
14,462.78 |
267,561.43 |
10,126.97 |
6,850.48 |
23,339.49 |
431,780.57 |
16,192.68 |
16. |
Paid-up equity share capital (face value Rs. 2 each) |
1,393.79 |
25,785.12 |
1,387.09 |
1,379.46 |
1,389.97 |
25,714.45 |
1,383.41 |
17. |
Reserves excluding revaluation reserves |
177,407.93 |
3,282,046.71 |
152,176.34 |
133,154.55 |
165,659.93 |
3,064,708.71 |
143,029.08 |
18. |
Analytical ratios |
|
|
|
|
|
|
|
|
i) Percentage of shares held by Government of India |
0.20% |
.. |
0.20% |
0.34% |
0.19% |
.. |
0.34% |
|
ii) Capital adequacy ratio (Basel III) |
16.93% |
.. |
18.33% |
18.47% |
19.16% |
.. |
19.12% |
|
iii) Earnings per share (EPS) |
|
|
|
|
|
|
|
|
a) Basic EPS before and after extraordinary items, net of tax expense (not annualized) (in Rs./JPY) |
20.79 |
38.46 |
14.62 |
10.41 |
33.66 |
62.27 |
24.01 |
|
b) Diluted EPS before and after extraordinary items, net of tax expense (not annualized) (in Rs./JPY) |
20.38 |
37.70 |
14.34 |
10.30 |
32.98 |
61.01 |
23.67 |
19. |
NPA Ratio 1 |
|
|
|
|
|
|
|
|
i) Gross non-performing customer assets (net of write-off) |
32,570.86 |
602,560.91 |
41,437.41 |
38,989.19 |
33,919.52 |
627,511.12 |
41,373.42 |
|
ii) Net non-performing customer assets |
6,099.29 |
112,836.87 |
8,161.04 |
7,187.51 |
6,960.89 |
128,776.47 |
9,180.20 |
|
iii) % of gross non-performing customer assets (net of write-off) to gross customer assets |
3.19% |
.. |
4.82% |
5.17% 2 |
3.60% |
.. |
4.96% |
|
iv) % of net non-performing customer assets to net customer assets |
0.61% |
.. |
0.99% |
1.00% 2 |
0.76% |
.. |
1.14% |
20. |
Return on assets (annualized) |
2.02% |
.. |
1.67% |
1.23% |
1.84% |
.. |
1.42% |
21. |
Net worth 3 |
170,442.17 |
3,153,180.15 |
144,264.76 |
125,260.17 |
158,769.75 |
2,937,240.38 |
134,709.32 |
22. |
Outstanding redeemable preference shares |
.. |
.. |
.. |
.. |
.. |
.. |
.. |
23. |
Capital redemption reserve |
350.00 |
6,475.00 |
350.00 |
350.00 |
350.00 |
6,475.00 |
350.00 |
24. |
Debt-equity ratio 4 |
0.40 |
.. |
0.38 |
0.62 |
0.44 |
.. |
0.51 |
25. |
Total debts to total assets 5 |
8.73% |
.. |
6.50% |
11.73% |
7.60% |
.. |
7.45% |
| 1. | At September 30, 2022, the percentage of gross non-performing advances (net of write-off) to gross advances
was 3.26% (March 31, 2022: 3.76%, September 30, 2021: 5.12%, March 31, 2021: 5.33%, September 30, 2020: 5.63%) and net non-performing
advances to net advances was 0.65% (March 31, 2022: 0.81%, September 30, 2021: 1.06%, March 31, 2021: 1.24%, September 30, 2020: 1.09%). |
| 2. | Including borrower accounts overdue for more than 90 days at September 30, 2020 and not classified as NPA
pursuant to the Supreme Court order, the pro forma gross NPA ratio and net NPA ratio (based on customer assets), would have been 5.36%
and 1.12% respectively at September 30, 2020. |
| 3. | Net worth is computed as per the Reserve Bank of India Master Circular No. RBI/2015-16/70 DBR.No.Dir.BC.12/13.03.00/2015-16
on Exposure Norms dated July 1, 2015. |
| 4. | Debt represents borrowings with residual maturity of more than one year. |
| 5. | Total debt represents total borrowings of the Bank. |
Consolidated segmental results of
ICICI Bank Limited
(Rs. in crore/JPY in million)
Sr.
No. |
Particulars |
Six months ended |
|
Year ended |
September
30, 2022 |
|
September
30, 2022 |
|
September
30, 2021 |
|
September 30, 2020 |
|
March 31, 2022 |
|
March 31, 2022 |
|
March 31, 2021 |
|
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
|
(Audited) |
1. |
Segment revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
a |
Retail Banking |
Rs. 48,710.23 |
|
JPY 901,139.26 |
|
Rs. 40,693.22 |
|
Rs. 36,821.12 |
|
Rs. 84,639.22 |
|
JPY 1,565,825.57 |
|
Rs. 75,669.29 |
b |
Wholesale Banking |
22,424.57 |
|
414,854.55 |
|
19,156.35 |
|
18,775.00 |
|
39,971.49 |
|
739,472.57 |
|
37,194.53 |
c |
Treasury |
38,380.32 |
|
710,035.92 |
|
32,787.00 |
|
35,112.67 |
|
67,321.09 |
|
1,245,440.17 |
|
66,481.09 |
d |
Other Banking |
1,811.60 |
|
33,514.60 |
|
1,361.76 |
|
1,610.71 |
|
2,778.41 |
|
51,400.59 |
|
3,180.06 |
e |
General Insurance |
.. |
|
.. |
|
.. |
|
6,190.87 |
|
.. |
|
.. |
|
12,964.83 |
f |
Life Insurance |
21,051.94 |
|
389,460.89 |
|
20,842.14 |
|
17,861.36 |
|
45,340.24 |
|
838,794.44 |
|
43,621.59 |
g |
Others |
4,500.68 |
|
83,262.58 |
|
4,369.02 |
|
4,009.62 |
|
8,733.25 |
|
161,565.13 |
|
7,827.03 |
|
Total segment revenue |
136,879.34 |
|
2,532,267.79 |
|
119,209.49 |
|
120,381.35 |
|
248,783.70 |
|
4,602,498.45 |
|
246,938.42 |
|
Less: Inter segment revenue |
52,482.79 |
|
970,931.62 |
|
44,373.03 |
|
43,175.88 |
|
91,247.38 |
|
1,688,076.53 |
|
85,746.23 |
|
Income from operations |
84,396.55 |
|
1,561,336.18 |
|
74,836.46 |
|
77,205.47 |
|
157,536.32 |
|
2,914,421.92 |
|
161,192.19 |
2. |
Segmental results (i.e. Profit before tax and minority interest) |
|
|
|
|
|
|
|
|
|
|
|
|
|
a |
Retail Banking |
8,342.48 |
|
154,335.88 |
|
2,995.57 |
|
5,771.00 |
|
11,400.39 |
|
210,907.22 |
|
7,739.97 |
b |
Wholesale Banking |
7,405.50 |
|
137,001.75 |
|
3,784.83 |
|
1,699.59 |
|
9,052.93 |
|
167,479.21 |
|
5,819.95 |
c |
Treasury |
5,650.70 |
|
104,537.95 |
|
5,300.22 |
|
6,462.10 |
|
9,674.48 |
|
178,977.88 |
|
10,615.59 |
d |
Other Banking |
439.76 |
|
8,135.56 |
|
301.87 |
|
288.36 |
|
627.12 |
|
11,601.72 |
|
573.57 |
e |
General Insurance |
.. |
|
.. |
|
.. |
|
1,085.61 |
|
.. |
|
.. |
|
1,953.95 |
f |
Life Insurance |
355.17 |
|
6,570.65 |
|
258.84 |
|
641.06 |
|
790.56 |
|
14,625.36 |
|
1,081.18 |
g |
Others |
2,060.59 |
|
38,120.92 |
|
2,142.69 |
|
1,956.66 |
|
4,349.99 |
|
80,474.82 |
|
4,007.71 |
h |
Unallocated expenses |
(2,550.00) |
|
(47,175.00) |
|
1,050.00 |
|
(6,047.30) |
|
25.00 |
|
462.50 |
|
(4,750.00) |
|
Total segment results |
21,704.20 |
|
401,527.70 |
|
15,834.02 |
|
11,857.08 |
|
35,920.47 |
|
664,528.70 |
|
27,041.92 |
|
Less: Inter segment adjustment |
867.47 |
|
16,048.20 |
|
1,040.62 |
|
452.34 |
|
1,679.20 |
|
31,065.20 |
|
1,157.88 |
|
Add: Share of profit in associates |
517.78 |
|
9,578.93 |
|
382.68 |
|
55.27 |
|
754.43 |
|
13,956.96 |
|
144.29 |
|
Profit before tax and minority interest |
21,354.51 |
|
395,058.44 |
|
15,176.08 |
|
11,460.01 |
|
34,995.70 |
|
647,420.45 |
|
26,028.33 |
3. |
Segment assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
a |
Retail Banking |
547,304.40 |
|
10,125,131.40 |
|
440,449.89 |
|
364,641.11 |
|
487,651.93 |
|
9,021,560.71 |
|
412,498.65 |
b |
Wholesale Banking |
391,612.01 |
|
7,244,822.19 |
|
334,763.84 |
|
294,183.17 |
|
379,091.80 |
|
7,013,198.30 |
|
325,937.50 |
c |
Treasury |
516,823.60 |
|
9,561,236.60 |
|
482,178.51 |
|
473,650.66 |
|
521,896.09 |
|
9,655,077.67 |
|
460,232.05 |
d |
Other Banking |
77,931.47 |
|
1,441,732.20 |
|
65,889.47 |
|
75,842.65 |
|
68,286.69 |
|
1,263,303.77 |
|
75,068.23 |
e |
General Insurance |
.. |
|
.. |
|
.. |
|
37,868.07 |
|
.. |
|
.. |
|
38,943.61 |
f |
Life Insurance |
247,827.69 |
|
4,584,812.27 |
|
241,441.14 |
|
184,161.41 |
|
244,006.42 |
|
4,514,118.77 |
|
216,918.91 |
g |
Others |
52,124.46 |
|
964,302.51 |
|
40,544.01 |
|
43,035.95 |
|
51,653.48 |
|
955,589.38 |
|
44,599.48 |
h |
Unallocated |
10,294.09 |
|
190,440.67 |
|
10,695.36 |
|
16,505.99 |
|
10,572.66 |
|
195,594.21 |
|
14,359.97 |
|
Total |
1,843,917.72 |
|
34,112,477.82 |
|
1,615,962.22 |
|
1,489,889.01 |
|
1,763,159.07 |
|
32,618,442.80 |
|
1,588,558.40 |
|
Less: Inter segment adjustment |
10,763.90 |
|
199,132.15 |
|
11,909.30 |
|
13,875.31 |
|
10,521.69 |
|
194,651.27 |
|
14,746.16 |
|
Total segment assets |
1,833,153.82 |
|
33,913,345.67 |
|
1,604,052.92 |
|
1,476,013.70 |
|
1,752,637.38 |
|
32,423,791.53 |
|
1,573,812.24 |
4. |
Segment liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
a |
Retail Banking |
830,053.25 |
|
15,355,985.13 |
|
726,094.15 |
|
623,628.40 |
|
791,894.25 |
|
14,650,043.63 |
|
686,920.79 |
b |
Wholesale Banking |
321,677.03 |
|
5,951,025.06 |
|
293,984.46 |
|
242,783.86 |
|
321,390.70 |
|
5,945,727.95 |
|
282,163.92 |
c |
Treasury |
156,709.28 |
|
2,899,121.68 |
|
106,797.40 |
|
164,790.95 |
|
133,045.58 |
|
2,461,343.23 |
|
121,596.08 |
d |
Other Banking |
48,111.03 |
|
890,054.06 |
|
48,834.28 |
|
60,624.11 |
|
49,428.36 |
|
914,424.66 |
|
56,774.88 |
e |
General Insurance |
.. |
|
.. |
|
.. |
|
31,175.63 |
|
.. |
|
.. |
|
31,143.21 |
f |
Life Insurance |
238,362.01 |
|
4,409,697.19 |
|
232,835.33 |
|
176,102.67 |
|
234,991.26 |
|
4,347,338.31 |
|
207,915.76 |
g |
Others |
43,866.06 |
|
811,522.11 |
|
33,601.16 |
|
37,200.09 |
|
44,120.97 |
|
816,237.95 |
|
38,195.80 |
h |
Unallocated |
10,000.00 |
|
185,000.00 |
|
5,210.46 |
|
7,557.80 |
|
6,235.46 |
|
115,356.01 |
|
6,260.46 |
|
Total |
1,648,778.66 |
|
30,502,405.21 |
|
1,447,357.24 |
|
1,343,863.51 |
|
1,581,106.58 |
|
29,250,471.73 |
|
1,430,970.90 |
|
Less: Inter segment adjustment |
10,763.90 |
|
199,132.15 |
|
11,909.30 |
|
13,875.31 |
|
10,521.69 |
|
194,651.27 |
|
14,746.16 |
|
Total segment liabilities |
1,638,014.76 |
|
30,303,273.06 |
|
1,435,447.94 |
|
1,329,988.20 |
|
1,570,584.89 |
|
29,055,820.47 |
|
1,416,224.74 |
5. |
Capital employed (i.e. Segment assets – Segment liabilities) |
|
|
|
|
|
|
|
|
|
|
|
|
|
a |
Retail Banking |
(282,748.85) |
|
(5,230,853.73) |
|
(285,644.25) |
|
(258,987.29) |
|
(304,242.32) |
|
(5,628,482.92) |
|
(274,422.14) |
b |
Wholesale Banking |
69,934.98 |
|
1,293,797.13 |
|
40,779.38 |
|
51,399.31 |
|
57,701.10 |
|
1,067,470.35 |
|
43,773.58 |
c |
Treasury |
360,114.32 |
|
6,662,114.92 |
|
375,381.11 |
|
308,859.71 |
|
388,850.51 |
|
7,193,734.44 |
|
338,635.97 |
d |
Other Banking |
29,820.44 |
|
551,678.14 |
|
17,055.19 |
|
15,218.54 |
|
18,858.33 |
|
348,879.11 |
|
18,293.35 |
e |
General Insurance |
.. |
|
.. |
|
.. |
|
6,692.44 |
|
.. |
|
.. |
|
7,800.40 |
f |
Life Insurance |
9,465.68 |
|
175,115.08 |
|
8,605.81 |
|
8,058.74 |
|
9,015.16 |
|
166,780.46 |
|
9,003.15 |
g |
Others |
8,258.40 |
|
152,780.40 |
|
6,942.84 |
|
5,835.86 |
|
7,532.51 |
|
139,351.44 |
|
6,403.68 |
h |
Unallocated |
294.09 |
|
5,440.67 |
|
5,484.90 |
|
8,948.19 |
|
4,337.20 |
|
80,238.20 |
|
8,099.51 |
|
Total capital employed |
Rs. 195,139.06 |
|
JPY 3,610,072.61 |
|
Rs. 168,604.98 |
|
Rs. 146,025.50 |
|
Rs. 182,052.49 |
|
JPY 3,367,971.07 |
|
Rs. 157,587.50 |
Notes on segmental
results:
| 1. | The disclosure on segmental reporting has been prepared in accordance with the
Reserve Bank of India guidelines on 'Segmental Reporting' and Securities and Exchange Board of India circular no. CIR/CFD/FAC/62/2016
dated July 5, 2016 on Revised Formats for Financial Results and Implementation of Indian Accounting Standards by Listed Entities. |
| 2. | 'Retail Banking' includes exposures of the Bank 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'. This segment also
includes income from credit cards, debit cards, third party product distribution and the associated costs. The Reserve Bank of India through
its circular dated April 7, 2022 on establishment of Digital Banking Units, has prescribed reporting of Digital Banking segment as a sub-segment
of Retail Banking segment. At September 30, 2022, the Digital Banking Units of the Bank were yet to commence operations and considering
the discussions of the Digital Banking Unit Working Group formed by Indian Banks' Association (with representation of banks and the Reserve
Bank of India), reporting of Digital Banking segment will be implemented by the Bank based on the decision of the Digital Banking Unit
Working Group. |
| 3. | 'Wholesale Banking' includes all advances to trusts, partnership firms, companies and statutory bodies, by
the Bank which are not included under Retail Banking. |
| 4. | 'Treasury' includes the entire investment and derivative portfolio of the Bank and ICICI Strategic Investments
Fund. |
| 5. | 'Other Banking' includes leasing operations and other items not attributable to any particular business
segment of the Bank. Further, it includes the Bank’s banking subsidiaries i.e. ICICI Bank UK PLC and ICICI Bank Canada. |
| 6. | 'Life Insurance' represents ICICI Prudential Life Insurance Company Limited. |
| 7. | 'Others' comprises the consolidated entities of the Bank, not covered in any of the segments above. |
| 8. | 'Unallocated' includes items such as tax paid in advance net of provision, deferred tax and provisions
to the extent reckoned at the entity level. |
| 9. | 'General Insurance' represents ICICI Lombard General Insurance Company Limited. From April 1, 2021, ICICI
Lombard General Insurance Company Limited ceased to be a subsidiary and accordingly general insurance has been discontinued as a business
segment from April 1, 2021. From April 1, 2021, the Bank's share in the net profit of ICICI Lombard General Insurance Company Limited
is included in "share of profit in associates". |
| 1. | The above financial results have been approved by the Board of Directors at its
meeting held on October 22, 2022. The joint statutory auditors have conducted limited review and issued an unmodified report on the standalone
and consolidated financial results for the six months ended September 30, 2022. |
| 2. | The financial results have been prepared in accordance with the recognition and
measurement principles given in Accounting Standard 25 on 'Interim Financial Reporting' as prescribed under the Companies Act 2013. |
| 3. | Details of resolution plans implemented under the Resolution Framework for Covid-19
related stress as per the Reserve Bank of India circular dated August 6, 2020 (Resolution Framework 1.0) and May 5, 2021 (Resolution Framework
2.0) at September 30, 2022 are given below: |
Rs. in crore
Type of Borrower |
Exposure to accounts classified as Standard consequent to implementation of resolution plan – Position as at the end of March 31, 2022 (A) |
Of (A), aggregate debt that slipped into NPA during the six months ended September 30, 2022 1 |
Of (A) amount written off during the six months ended September 30, 2022 |
Of (A) amount paid by the borrowers during the six months ended September 30, 20222 |
Exposure to accounts classified as Standard consequent to implementation of resolution plan – September 30, 2022 |
Personal Loans3 |
3,115.48 |
356.90 |
26.04 |
316.36 |
2,442.22 |
Corporate persons |
1,703.70 |
.. |
.. |
(46.25) |
1,749.95 |
Of which, MSMEs |
.. |
.. |
.. |
.. |
.. |
Others |
767.73 |
74.77 |
4.14 |
81.66 |
611.30 |
Total |
5,586.91 |
431.67 |
30.18 |
351.77 |
4,803.47 |
1. Includes
cases which have been written off during the period.
2. Net of
increase in exposure during the period.
3. Includes
various categories of retail loans.
| 4. | During the three months ended September 30, 2022, the Bank has made an additional
contingency provision of Rs. 1,500.00 crore (the six months ended September 30, 2022: Rs. 2,550.00 crore) on a prudent basis. Accordingly,
the Bank holds contingency provision of Rs. 10,000.00 crore at September 30, 2022. |
| 5. | During the three months ended September 30, 2022, the Bank has allotted 11,521,851
equity shares of Rs. 2 each pursuant to exercise of employee stock options. |
| 6. | In accordance with the Reserve Bank of India’s guidelines, consolidated Pillar
3 disclosure (unaudited), leverage ratio, liquidity coverage ratio, net stable funding ratio and details of loans transferred/acquired
under the Reserve Bank of India Master Direction on Transfer of Loan Exposures dated September 24, 2021 is available at https://www.icicibank.com/regulatory-disclosure.page. |
| 7. | Previous period/year figures have been re-grouped/re-classified where necessary
to conform to current period classification. |
| 8. | The above standalone and consolidated financial results have been reviewed/audited
by the joint statutory auditors, MSKA & Associates, Chartered Accountants and KKC & Associates LLP (formerly Khimji Kunverji &
Co LLP), Chartered Accountants. |
| 9. | Rs. 1 crore = Rs. 10.0 million. |
There has been
no material change since the last ASR filed on September 28, 2022 for fiscal 2022.
| 3. | State of Affiliated Companies |
There has been
no material change since the last ASR filed on September 28, 2022 for fiscal 2022.
At September
30, 2022, we had 110,012 employees, including interns, sales executives and employees on fixed-term contracts.
| III. | STATEMENT OF BUSINESS |
| 1. | Management Policy, Business Environment and Problems to be Coped with, etc. |
There has been
no material change since the last ASR filed on September 28, 2022 for fiscal 2022.
| 2. | Risks in Business, etc. |
There has been
no material change since the last ASR filed on September 28, 2022 for fiscal 2022.
| 3. | Management’s Analysis of Financial Condition, Operating Results and Statement of Cash Flows |
The following
discussion is based on our unaudited standalone financial results for the six months ended September 30, 2022.
Profit after
tax increased from Rs. 101.27 billion in the six months ended September 30, 2021 to Rs. 144.63 billion in the six months ended September
30, 2022 primarily due to an increase in net interest income, an increase in fee income and a decrease in provisions and contingencies,
offset, in part, by an increase in operating expenditure.
Net interest
income increased by 23.7% from Rs. 226.26 billion in the six months ended September 30, 2021 to Rs. 279.97 billion in the six months ended
September 30, 2022 due to an increase in net interest margin by 22 basis points to 4.16% and an increase of 17.2% in the average volume
of interest-earning assets.
Fee income increased
by 24.1% from Rs. 70.30 billion in the six months ended September 30, 2021 to Rs. 87.23 billion in the six months ended September 30,
2022 primarily due to an increase in transaction banking fees, lending linked fees and income from foreign exchange and derivatives products.
Non-interest
expense increased by 24.7% from Rs. 126.09 billion in the six months ended September 30, 2021 to Rs. 157.27 billion in the six months
ended September 30, 2022 primarily due to an increase in employee expenses, technology related expenses, advertisement and sales promotion
expenses and direct marketing agency expenses.
Income from treasury-related
activities decreased from a gain of Rs. 6.86 billion in the six months ended September 30, 2021 to a loss of Rs. 0.49 billion in the six
months ended September 30, 2022 primarily due to a loss on government securities and other fixed income positions driven by unfavorable
market conditions.
Provisions and
contingencies (excluding provisions for tax) decreased by 49.9% from Rs. 55.65 billion in the six months ended September 30, 2021 to Rs.
27.88 billion in the six months ended September 30, 2022. The provision coverage ratio was 80.6% at September 30, 2022 as compared to
80.1% at September 30, 2021.
The income tax
expense increased from Rs. 31.17 billion in the six months ended September 30, 2021 to Rs. 47.38 billion in the six months ended September
30, 2022 primarily due to an increase in profit before taxes. The effective tax rate increased from 23.5% in the six months ended September
30, 2021 to 24.7% in the six months ended September 30, 2022.
Total assets
increased by 16.7% from Rs. 12,760.02 billion at September 30, 2021 to Rs. 14,886.74 billion at September 30, 2022. Total advances increased
by 22.7% from Rs. 7,649.37 billion at September 30, 2021 to Rs. 9,385.63 billion at September 30, 2022. Domestic advances increased by
24.0% from Rs. 7,262.36 billion at September 30, 2021 to Rs. 9,005.72 billion at September 30, 2022. Total deposits increased by 11.5%
from Rs. 9,774.49 billion at September 30, 2021 to Rs. 10,900.08 billion at September 30, 2022. Term deposits increased by 10.5% from
Rs. 5,267.45 billion at September 30, 2021 to Rs. 5,821.68 billion at September 30, 2022. Savings account deposits increased by 13.8%
from Rs. 3,185.57 billion at September 30, 2021 to Rs. 3,624.84 billion at September 30, 2022. Current account deposits increased by 10.0%
from Rs. 1,321.47 billion at September 30, 2021 to Rs. 1,453.56 billion at September 30, 2022. Average current and savings account deposits
increased by 17.9% from Rs. 3,977.24 billion at September 30, 2021 to Rs. 4,690.72 billion at September 30, 2022. The current and savings
account ratio (current and savings account deposits to total deposits) increased from 46.1% at September 30, 2021 to 46.6% at September
30, 2022.
At September
30, 2022, we had 5,614 branches and extension counters, 13,254 ATMs and 3,240 cash recycler machines, as compared to 5,277 branches and
extension counters, 14,045 ATMs and 2,805 cash recycler machines at September 30, 2021.
In accordance
with Reserve Bank of India guidelines on Basel III, the total capital adequacy ratio on a standalone basis was 16.93% at September 30,
2022, with Tier-1 capital adequacy ratio of 16.17% (excluding retained earnings for the six months ended September 30, 2022) and Common
Equity Tier-1 capital adequacy ratio of 15.61% (excluding retained earnings for the six months ended September 30, 2022) as compared to
19.16% at March 31, 2022, with Tier-1 capital adequacy ratio of 18.35% and Common Equity Tier-1 capital adequacy ratio of 17.60%.
Net
Interest Income
The following table
sets forth, for the periods indicated, the principal components of net interest income.
| |
Six months ended September 30, |
Particulars | |
2021 | |
2022 | |
2022 | |
2022/2021 % change |
|
(in million, except percentages) |
Interest income | |
| Rs. 416,170.5 | | |
| Rs. 497,045.8 | | |
| JPY 919,534.7 | | |
| 19.4 | % |
Interest expense | |
| (189,915.5 | ) | |
| (217,077.5 | ) | |
| (401,593.4 | ) | |
| 14.3 | |
Net interest income(1) | |
| Rs. 226,255.0 | | |
| Rs. 279,968.3 | | |
| JPY 517,941.4 | | |
| 23.7 | % |
_______________
| (1) | Includes interest and amortisation of premium/discount on non-trading
interest rate swaps and foreign exchange currency swaps. |
Net
interest income increased by 23.7% from Rs. 226.26 billion in the six months ended September 30, 2021 to Rs. 279.97 billion in the six
months ended September 30, 2022 primarily due to an increase in net interest margin by 22 basis points and an increase of 17.2% in the
average volume of interest-earning assets.
Net
Interest Margin
Net interest margin
increased by 22 basis points from 3.94% in the six months ended September 30, 2021 to 4.16% in the six months ended September 30, 2022.
The yield on average interest-earning assets increased by 14 basis points from 7.25% in the six months ended September 30, 2021 to 7.39%
in the six months ended September 30, 2022. The cost of funds decreased by 3 basis points from 3.76% in the six months ended September
30, 2021 to 3.73% in the six months ended September 30, 2022. The interest spread increased by 17 basis points from 3.49% in the six months
ended September 30, 2021 to 3.66% in the six months ended September 30, 2022.
The net interest
margin of domestic operations increased by 26 basis points from 4.04% in the six months ended September 30, 2021 to 4.30% in the six months
ended September 30, 2022 primarily due to an increase in yield on interest-earning assets and a decrease in cost of funds. The yield on
domestic interest-earning assets increased by 18 basis points from 7.38% in the six months ended September 30, 2021 to 7.56% in the six
months ended September 30, 2022 primarily due to an increase in the proportion of average advances and an increase in yield on average
investments. The cost of domestic funds decreased by 5 basis points from 3.83% in the six months ended September 30, 2021 to 3.78% in
the six months ended September 30, 2022 primarily due to a decrease in cost of deposits, offset, in part, by an increase in cost of borrowings.
The net interest
margin of overseas branches increased by 16 basis points from 0.26% in the six months ended September 30, 2021 to 0.42% in the six months
ended September 30, 2022.
The yield on average
interest-earning assets increased by 14 basis points from 7.25% in the six months ended September 30, 2021 to 7.39% in the six months
ended September 30, 2022 primarily due to the following factors:
| • | The yield on average interest-earning assets increased mainly due to an increase in the proportion of
advances and a decrease in the proportion of lower yielding other interest-earning assets. |
| • | The Bank saw reduction in yields on domestic advances from the beginning of fiscal year 2022 till June
30, 2022 primarily due to significant monetary easing by Reserve Bank of India post Covid-19. From May 2022 onwards, the decision of Reserve
Bank of India to withdraw the liquidity by raising the interest rates resulted in an increase in lending rates. The impact of increase
in repurchase rates from May 2022 started reflecting in the increase in overall yield through repricing of repurchase and treasury bills
linked portfolio during the three months ended September 30, 2022. The full impact of increase in repurchase rates till date will be reflected
in the yields on advances from the second half of the fiscal year ending March 31, 2023 onwards. Accordingly, while the yield on domestic
average advances increased from 8.61% in the three months ended June 30, 2021 (8.45% in the three months ended June 30, 2022) to 8.89%
in the three months ended September 30, 2022, the yield on domestic advances remained at similar level at 8.68% both in the six months
ended September 30, 2021 and September 30, 2022. |
The yield on overseas advances increased
by 104 basis points from 1.58% in the six months ended September 30, 2021 to 2.62% in the six months ended September 30, 2022 primarily
due to repricing of floating rate/maturing advances due to ongoing hike in interest rates by the United States Federal Reserve.
The overall yield on average advances
increased by 8 basis points from 8.30% in the six months ended September 30, 2021 to 8.38% in the six months ended September 30, 2022
primarily due to an increase in proportion on domestic advances.
| • | The yield on average interest-earning investments increased by 24 basis points from 5.99% in the six months
ended September 30, 2021 to 6.23% in the six months ended September 30, 2022. |
The yield on investment in Indian government
securities increased by 7 basis points from 6.25% in the six months ended September 30, 2021 to 6.32% in the six months ended September
30, 2022 primarily due to reset of floating rate bonds at higher rates pursuant to a significant increase in treasury bill rates and new
investment in government securities at higher market yields. The yield on investment in non-government securities increased by 77 basis
points from 4.80% in the six months ended September 30, 2021 to 5.57% in the six months ended September 30, 2022 due to an increase in
proportion on bonds and debentures and an increase in yield on foreign government securities, offset, in part, by decrease in yield on
pass through certificates.
| • | The yield on other interest-earning assets decreased by 50 basis points from 4.06% in the six months ended
September 30, 2021 to 3.56% in the six months ended September 30, 2022. The decrease was primarily due to a decrease in income on funding
swaps, an increase in average balance with Reserve Bank of India which does not earn any interest and a decrease in yield on Rural Infrastructure
and Development Fund and related deposits. The decrease was, offset, in part, by an increase in yield on call money lent and an increase
in yield on balance with other banks. |
| • | Interest on income tax refund increased from Rs. 0.44 billion in the six months ended September 30, 2021
to Rs. 1.07 billion in the six months ended September 30, 2022. The receipt, amount and timing of such income depends on the nature and
timing of determinations by tax authorities and are neither consistent nor predictable. |
The cost of funds
decreased by 3 basis points from 3.76% in the six months ended September 30, 2021 to 3.73% in the six months ended September 30, 2022
primarily due to the following factors:
| • | The cost of average deposits decreased by 8 basis points from 3.59% in the six months ended September
30, 2021 to 3.51% in the six months ended September 30, 2022 primarily due to a decrease in cost of domestic term deposits and an increase
in the proportion of average current account and savings account deposits in total deposits. |
The Bank saw reduction in cost of domestic
term deposits from the beginning of fiscal year 2022 till June 30, 2022 primarily due to significant systemic liquidity and monetary easing
by Reserve Bank of India post Covid-19 till May 2022. While the cost of domestic term deposits continued to decline to 4.48% in the three
months ended June 30, 2022 (4.75% in the three months ended June 30, 2021), it increased marginally during the three months ended September
30, 2022 to 4.59%. Accordingly, the cost of domestic term deposits decreased by 10 basis points from 4.64% in the six months ended September
30, 2021 to 4.54% in the six months ended September 30, 2022. The impact of rising interest rates from the beginning of fiscal year 2023
is expected to be reflected in the cost of domestic term deposits from the second half of the fiscal year ending March 31, 2023 onwards.
The cost of savings account deposits
increased by 3 basis points from 3.13% in the six months ended September 30, 2021 to 3.16% in the six months ended September 30, 2022.
The average current account and savings
account deposits as a percentage of total deposits increased from 43.9% in the six months ended September 30, 2021 to 45.4% in the six
months ended September 30, 2022.
| • | The cost of borrowings increased by 14 basis points from 5.36%
in the six months ended September 30, 2021 to 5.50% in the six months ended September 30, 2022 primarily due to an increase in cost of
call money borrowings and an increase in cost of refinance borrowings, offset, in part, by a decrease in cost of bond borrowings. |
Our yield on advances, interest
earned, net interest income and net interest margin are impacted by systemic liquidity, the competitive environment, level of additions
to non-performing loans, regulatory developments, monetary policy and the economic and geopolitical factors.
Interest rates on approximately
49% of ICICI Bank’s domestic loans are linked to external market benchmarks. Differential movement in the external benchmark rates
vis-a-vis our cost of funds may impact our interest earned, yield on advances, interest expended, net interest income and net interest
margin.
Interest-Earning
Assets
Average interest-earning
assets increased by 17.2% from Rs. 11,444.59 billion in the six months ended September 30, 2021 to Rs. 13,407.92 billion in the six months
ended September 30, 2022 primarily due to an increase in average interest-earning advances by Rs. 1,554.19 billion and average investments
by Rs. 397.59 billion.
Average advances
increased by 21.1% from Rs. 7,382.68 billion in the six months ended September 30, 2021 to Rs. 8,936.87 billion in the six months ended
September 30, 2022 due to an increase of 21.7% in average domestic advances and an increase of 10.3% in average overseas advances.
Average interest-earning
investments increased by 14.7% from Rs. 2,708.98 billion in the six months ended September 30, 2021 to Rs. 3,106.57 billion in the six
months ended September 30, 2022. Average interest-earning investments in Indian government securities increased by 22.9% from Rs. 2,233.47
billion in the six months ended September 30, 2021 to Rs. 2,743.87 billion in the six months ended September 30, 2022. Average interest-earning
non-government securities decreased from Rs. 475.51 billion in the six months ended September 30, 2021 to Rs. 362.70 billion in the six
months ended September 30, 2022.
Average other interest-earning
assets increased by 0.9% from Rs. 1,352.93 billion in the six months ended September 30, 2021 to Rs. 1,364.48 billion in the six months
ended September 30, 2022, primarily due to an increase in balance with Reserve Bank of India, offset, in part, by a decrease in call and
term money lent and a decrease in balance with Rural Infrastructure and Development Fund and related deposits.
Interest-Bearing
Liabilities
Average interest-bearing
liabilities increased by 15.5% from Rs. 10,062.41 billion in the six months ended September 30, 2021 to Rs. 11,617.71 billion in the six
months ended September 30, 2022 due to an increase in average deposits by Rs. 1,275.84 billion and increase in average borrowings by Rs.
279.46 billion.
Average deposits increased
by 14.1% from Rs. 9,056.09 billion in the six months ended September 30, 2021 to Rs. 10,331.94 billion in the six months ended September
30, 2022 due to an increase in average current account and savings account deposits by Rs. 713.48 billion and average term deposits by
Rs. 562.36 billion.
Average borrowings
increased by 27.8% from Rs. 1,006.32 billion in the six months ended September 30, 2021 to Rs. 1,285.78 billion in the six months ended
September 30, 2022 primarily due to an increase in bond borrowings and an increase in call and term money borrowing.
Non-Interest
Income
The following table
sets forth, for the periods indicated, the principal components of non-interest income.
| |
Six months ended September 30, |
| |
| |
| |
| |
2022/2021 |
Particulars | |
2021 | |
2022 | |
2022 | |
% change |
| |
(in million, except percentages) |
Fee income(1) | |
| Rs. 70,305.4 | | |
| Rs. 87,233.3 | | |
| JPY 161,381.6 | | |
| 24.1 | % |
Income from treasury-related activities(2) | |
| 6,869.6 | | |
| (483.5 | ) | |
| (894.5 | ) | |
| — | |
Dividend from subsidiaries/associates/joint ventures | |
| 9,928.3 | | |
| 9,949.7 | | |
| 18,406.9 | | |
| 0.2 | |
Other income (including lease income) | |
| 829.3 | | |
| 501.3 | | |
| 927.4 | | |
| (39.8 | ) |
Total non-interest income | |
| Rs. 87,932.6 | | |
| Rs. 97,200.8 | | |
| JPY 179,821.5 | | |
| 10.5 | % |
____________
| (1) | Includes merchant foreign exchange income, margin on customer derivative transactions, income on sale
of priority sector lending certificate and income from bullion business. |
| (2) | Includes profit/loss on sale and revaluation of investments. |
Non-interest income
primarily includes fee and commission income, income from treasury-related activities, dividend from subsidiaries/associates/joint ventures
and other income (including lease income). The non-interest income increased by 10.5% from Rs. 87.93 billion in the six months ended September
30, 2021 to Rs. 97.20 billion in the six months ended September 30, 2022 primarily due to an increase in fee income, offset, in part,
by a decrease in income from treasury related activities.
Fee Income
Fee income primarily
includes fees from the retail products such as loan processing fees, fees from credit cards business, account service charges and third
party referral fees and fees from the corporate sector such as loan processing fees and transaction banking fees. The income increased
by 24.1% from Rs. 70.30 billion in the six months ended September 30, 2021 to Rs. 87.23 billion in the six months ended September 30,
2022 primarily due to an increase in transaction banking fees, lending linked fees and income from foreign exchange and derivatives products.
Profit/(loss)
on Treasury-related Activities (net)
Income from treasury-related
activities includes income from sale of investments and changes in unrealized profit/(loss) on account of the revaluation of investments
in the fixed income, equity and preference portfolio and units of venture funds and security receipts issued by asset reconstruction companies.
Income from treasury-related
activities decreased from a gain of Rs. 6.86 billion in the six months ended September 30, 2021 to a loss of Rs. 0.49 billion in the six
months ended September 30, 2022 primarily due to a loss on government securities and other fixed income positions driven by unfavorable
market conditions.
Dividend
from subsidiaries/associates/joint ventures
Dividend
from subsidiaries/associates/joint ventures increased from Rs. 9.93 billion in the six months ended September 30, 2021 to Rs. 9.95 billion
in the six months ended September 30, 2022.
The
following table sets forth, for the periods indicated, the details of dividend received from subsidiaries/associates/joint ventures:
|
Six
months ended September 30, |
Particulars |
2021 |
|
2022 |
|
2022 |
|
(in
million) |
ICICI
Securities Limited |
Rs. 3,262.3 |
|
Rs. 3,081.1 |
|
JPY
5,700.0 |
ICICI
Prudential Asset Management Company Limited |
3,042.9 |
|
2,853.8 |
|
5,279.5 |
ICICI
Securities Primary Dealership Limited |
1,203.8 |
|
1,360.2 |
|
2,516.4 |
ICICI
Lombard General Insurance Company Limited |
943.4 |
|
1,179.2 |
|
2,181.5 |
ICICI
Bank UK PLC |
- |
|
796.8 |
|
1,474.1 |
ICICI
Prudential Life Insurance Company Limited |
1,475.2 |
|
405.7 |
|
750.6 |
ICICI
Home Finance Company Limited |
- |
|
164.8 |
|
304.9 |
India
Infradebt Limited |
- |
|
106.5 |
|
197.0 |
ICICI
Prudential Trust Limited |
0.7 |
|
1.5 |
|
2.8 |
Total
dividend |
Rs. 9,928.3 |
|
Rs. 9,949.6 |
|
JPY
18,406.8 |
Other
Income
Other
income decreased by 39.8% from Rs. 0.83 billion in the six months ended September 30, 2021 to Rs. 0.50 billion in the six months ended
September 30, 2022.
Non-Interest
Expense
The
following table sets forth, for the periods indicated, the principal components of non-interest expense.
| |
Six months ended September 30, |
Particulars | |
2021 | |
2022 | |
2022 | |
2022/2021 % change |
| |
(in millions, except percentages) |
Employee expenses | |
| Rs. 47,589.8 | | |
| Rs. 57,377.4 | | |
| JPY 106,148.2 | | |
| 20.6 | % |
Depreciation on assets (including leased assets) | |
| 5,680.2 | | |
| 6,438.4 | | |
| 11,911.0 | | |
| 13.3 | |
Other administrative expenses | |
| 72,824.2 | | |
| 93,461.1 | | |
| 172,903.0 | | |
| 28.3 | |
Total non-interest expenses | |
| Rs. 126,094.2 | | |
| Rs. 157,276.9 | | |
| JPY 290,962.3 | | |
| 24.7 | % |
Non-interest
expenses primarily include employee expenses, depreciation on assets and other administrative expenses. Non-interest expenses increased
by 24.7% from Rs. 126.09 billion in the six months ended September 30, 2021 to Rs. 157.27 billion in the six months ended September 30,
2022.
Employee
Expenses
Employee
expenses increased by 20.6% from Rs. 47.59 billion in the six months ended September 30, 2021 to Rs. 57.38 billion in the six months
ended September 30, 2022 primarily due to an increase in payroll cost, provision for performance bonus and performance-linked retention
pay and fair value accounting of employee stock options as per circular issued by Reserve Bank of India during the three months ended
September 30, 2021, offset, in part, by decrease in provision requirement for retirement benefit obligations.
Depreciation
on fixed assets increased by 13.3% from Rs. 5.68 billion in the six months ended September 30, 2021 to Rs. 6.44 billion in the six months
ended September 30, 2022.
Other
Administrative Expenses
Other
administrative expenses primarily include rent, taxes and lighting, advertisement, sales promotion, repairs and maintenance, direct marketing
expenses and other expenditure. Other administrative expenses increased by 28.3% from Rs. 72.82 billion in the six months ended September
30, 2021 to Rs. 93.46 billion in the six months ended September 30, 2022 primarily due to increase in technology related expenses, advertisement
and sales promotion expenses and direct marketing agency expenses. The technology related expenses was 8.9% of the total non-interest
expenses in the six months ended September 30, 2022.
The
number of branches increased from 5,277 at September 30, 2021 to 5,614 at September 30, 2022 (at March 31, 2022: 5,418).
Provisions
and Contingencies (Excluding Provisions for Tax)
The
following table sets forth, for the periods indicated, the composition of provisions and contingencies, excluding provisions for tax.
| |
Six months ended September 30, |
Particulars | |
2021 | |
2022 | |
2022 | |
2022/2021 % change |
| |
(in millions, except percentages) |
Provision for investments (including credit substitutes) (net) | |
| Rs. (1,544.3) | | |
| Rs. 9,748.6 | | |
| JPY 18,034.9 | | |
| — | |
Provision for non-performing and other assets(1) | |
| 52,383.1 | | |
| (5,302.1 | ) | |
| (9,808.9 | ) | |
| — | |
Provision for standard assets | |
| 816.1 | | |
| 4,117.3 | | |
| 7,617.0 | | |
| — | |
Others(2) | |
| 3,996.8 | | |
| 19,319.6 | | |
| 35,741.3 | | |
| — | |
Total provisions and contingencies | |
| Rs. 55,651.7 | | |
| Rs. 27,883.4 | | |
| JPY 51,584.3 | | |
| (49.9 | )% |
__________
(1) Includes restructuring
related provision.
(2)
Includes contingency provision amounting to Rs. 25.50 billion during the six months ended September 30, 2022 (During the six months ended
September 30, 2021: write-back of Rs. 10.50 billion).
Provisions
and contingencies (excluding provisions for tax) decreased from Rs. 55.65 billion in the six months ended September 30, 2021 to Rs. 27.88
billion in the six months ended September 30, 2022.
Provision
for advances decreased from a provision of Rs. 52.38 billion in six months ended September 30, 2021 to a write-back of provision amounting
to Rs. 5.30 billion in six months ended September 30, 2022. In the six months ended September 30, 2021, the provision for non-performing
and other assets was higher primarily due to higher additions to non-performing assets and restructuring of loans under Resolution Framework
of Reserve Bank of India, reflecting Covid-19 related stress due to second wave and change in provisioning policy on non-performing advances.
In the six months ended September 30, 2022, there were lower additions to non-performing loans, higher upgrades and recoveries.
During
the six months ended September 30, 2022, there was a provision for investments of Rs. 9.75 billion as compared to a write-back of Rs.
1.54 billion in the six months ended September 30, 2021.
Provision
for standard assets increased from Rs. 0.82 billion in the six months ended September 30, 2021 to Rs. 4.12 billion in the six months
ended September 30, 2022. The cumulative general provision (excluding Covid-19 related provision) held at September 30, 2022 was Rs.
45.32 billion (September 30, 2021: Rs. 37.20 billion).
Other
provisions and contingencies increased from Rs. 4.01 billion in the six months ended September 30, 2021 to Rs. 19.32 billion in the six
months ended September 30, 2022. The Bank made an additional contingency provision of Rs. 25.50 billion (During the six months ended
September 30, 2021: write-back of Rs. 10.50 billion) on a prudent basis during the six months ended September 30, 2022. Accordingly,
the Bank held contingency provision of Rs. 100.00 billion at September 30, 2022.
Restructured
Loans and Non-performing Loans
We
classify our loans as performing and non-performing in accordance with Reserve Bank of India guidelines. Under Reserve Bank of India
guidelines, a loan is generally classified as non-performing if any amount of interest or principal remains overdue for more than 90
days, in respect of term loans. In respect of overdraft or cash credit, a loan is classified as non-performing if the account remains
out of order for a period of 90 days; and in respect of bills, if the account remains overdue for more than 90 days. Reserve Bank of
India guidelines also require a loan to be classified as non-performing based on certain other criteria like restructuring of a loan,
inability of a borrower to complete a project funded by us within stipulated timelines and certain other non-financial parameters. In
respect of borrowers where loans and advances made by overseas branches are identified as impaired as per host country regulations for
reasons other than record of recovery, but which are standard as per Reserve Bank of India guidelines, the amount outstanding in the
host country is classified as non-performing.
In
accordance with Reserve Bank of India circular dated April 17, 2020, the moratorium granted to certain borrowers is excluded from the
determination of number of days past-due/out-of-order status for the purpose of loans classification. The moratorium granted to the borrowers
is not accounted as restructuring of loan.
The
Reserve Bank of India has separate guidelines for classification of loans for projects under implementation which are based on the date
of commencement of commercial production and date of completion of the project as originally envisaged at the time of financial closure.
For infrastructure projects, a loan is classified as non-performing if it fails to commence commercial operations within two years from
the documented date of commencement and for non-infrastructure projects, the loan is classified as non-performing if it fails to commence
operations within 12 months from the documented date of such commencement.
The
Reserve Bank of India has separate guidelines for restructured loans. As per these guidelines, loans restructured are classified as non-performing
loans. However, loans granted for implementation of projects that are restructured due to a delay in implementation of the project (up
to a specified period) enjoy forbearance in loans classification subject to the fulfillment of certain conditions stipulated by the Reserve
Bank of India. The moratorium granted on repayment of principal/interest to the borrowers in terms of measures taken by the Reserve Bank
of India post outbreak of Covid-19 pandemic is not accounted as restructuring of loan. The Reserve Bank of India has issued guidelines
for restructuring of loans to micro and small enterprises borrowers while continuing loans classification as standard, subject to specified
conditions. Further, Reserve Bank of India through its guideline on ‘Resolution Framework for COVID-19-related Stress’ dated
August 6, 2020 and May 5, 2021, has provided a prudential framework to implement a resolution plan in respect of eligible corporate borrowers
and personal loans, while classifying such exposures as standard, subject to specified conditions. For such loans, the diminution in
the fair value of the loan, if any, measured in present value terms, has to be provided for in addition to the provisions applicable
to non-performing loans.
The
following table sets forth, at the dates indicated, certain information regarding non-performing loans.
|
At |
September
30, 2021 |
March
31,
2022 |
September
30, 2022 |
September
30, 2022 |
|
|
(in
millions, except percentages) |
Gross
non-performing loans |
Rs.
408,308.6 |
Rs.
332,949.2 |
Rs.
314,214.2 |
JPY
581,296.3 |
(23.04)% |
Provisions
for non-performing loans |
(327,026.3) |
(263,638.8) |
(253,266.2) |
(468,542.5) |
(22.55) |
Net
non-performing loans |
Rs. 81,282.3 |
Rs. 69,310.4 |
Rs. 60,948.0 |
JPY
112,753.8 |
(25.02)% |
Gross
customer loans |
7,978,662.8 |
8,856,763.4 |
9,641,438.5 |
17,836,661.2 |
20.84 |
Net
customer loans |
7,649,374.3 |
8,590,204.4 |
9,385,627.8 |
17,363,411.4 |
22.70 |
Gross
non-performing loans as a percentage of gross customer loans |
5.12% |
3.76% |
3.26% |
|
|
Net
non-performing loans as a percentage of net customer loans |
1.06% |
0.81% |
0.65% |
|
|
(1) Prior period
figures have been re-grouped/re-arranged where necessary.
Gross additions to
non-performing loans decreased from Rs. 124.75 billion in the six months ended September 30, 2021 to Rs. 97.59 billion in the six months
ended September 30, 2022. The recoveries/upgrades from non-performing loans increased from Rs. 90.61 billion in the six months ended
September 30, 2021 to Rs. 94.65 billion in the six months ended September 30, 2022. Gross non-performing loans amounting to Rs. 21.68
billion were written-off in the six months ended September 30, 2022. Gross non-performing loans decreased from Rs. 408.31 billion at
September 30, 2021 to Rs. 314.21 billion at September 30, 2022 (at March 31, 2022: Rs. 332.95 billion). Net non-performing loans decreased
from Rs. 81.28 billion at September 30, 2021 to Rs. 60.95 billion at September 30, 2022 (at March 31, 2022: Rs. 69.31 billion). The ratio
of net non-performing loans to net customer loans decreased from 1.06% at September 30, 2021 to 0.65% at September 30, 2022 (at March
31, 2022: 0.81%).
Gross non-performing
loans in the retail portfolio were 1.88% of gross retail loans at September 30, 2022 compared to 3.26% at September 30, 2021 and net
non-performing loans in the retail portfolio were 0.74% of net retail loans at September 30, 2022 compared to 1.15% at September 30,
2021.
The non-fund based outstanding to borrowers
classified as non-performing loans were Rs. 35.16 billion at September 30, 2022 as compared to Rs. 37.14 billion at September 30, 2021.
The gross outstanding loans to borrowers
whose facilities have been restructured decreased from Rs. 96.84 billion at September 30, 2021 to Rs. 67.13 billion at September 30,
2022. The net outstanding loans to borrowers whose facilities have been restructured decreased from Rs. 94.58 billion at September 30,
2021 to Rs. 64.60 billion at September 30, 2022. The aggregate non-fund based outstanding to borrowers whose loans were restructured
was Rs. 5.67 billion at September 30, 2022.
The provision coverage ratio increased
from 80.1% at September 30, 2021 to 80.6% at September 30, 2022.
In addition to the above, at September
30, 2022, the outstanding loans and non-fund facilities to borrowers in the corporate and small and medium enterprises portfolio (excluding
banks, investments and fund and non-fund based outstanding to non-performing loans) rated BB and below were Rs. 76.38 billion.
Tax Expense
Income tax expense
increased from Rs. 31.17 billion in the six months ended September 30, 2021 to Rs. 47.38 billion in the six months ended September 30,
2022 primarily due to an increase in profit before taxes. The effective tax rate increased from 23.5% in the six months ended September
30, 2021 to 24.7% in the six months ended September 30, 2022 primarily due to change in composition of income.
Financial Condition
Assets
The following table sets forth, at the
dates indicated, the principal components of assets.
| |
At |
| |
September 30, 2021 | |
March 31, 2022 | |
September 30, 2022 | |
September 30, 2022 | |
2022/2021 % change |
| |
(in million, except percentages) |
| |
| |
| |
| |
| |
|
Cash and cash equivalents | |
| Rs. 1,500,438.4 | | |
| Rs.
1,678,223.6 | | |
| Rs.
1,249,129.2 | | |
| JPY 2,310,889.0 | | |
| (16.7 | )% |
Investments(1) | |
| 2,852,200.4 | | |
| 3,102,410.0 | | |
| 3,330,308.2 | | |
| 6,161,070.2 | | |
| 16.8 | |
Advances | |
| 7,649,374.3 | | |
| 8,590,204.4 | | |
| 9,385,627.8 | | |
| 17,363,411.4 | | |
| 22.7 | |
Fixed assets (including leased assets) | |
| 91,532.3 | | |
| 93,738.2 | | |
| 95,096.7 | | |
| 175,928.9 | | |
| 3.9 | |
Other assets(2) | |
| 666,477.6 | | |
| 648,401.2 | | |
| 826,580.5 | | |
| 1,529,173.9 | | |
| 24.0 | |
Total assets | |
| Rs. 12,760,023.0 | | |
| Rs. 14,112,977.4 | | |
| Rs. 14,886,742.4 | | |
| JPY 27,540,473.4 | | |
| 16.7 | % |
| (1) | Includes
government and other approved securities qualifying for statutory liquidity ratio. Banks
in India are required to maintain a specified percentage, currently 18.00% (at September
30, 2022), of their net demand and time liabilities by way of liquid assets like cash, gold
or approved unencumbered securities. |
| (2) | Includes
deposits made in Rural Infrastructure and Development Fund and other such entities in lieu
of shortfall in the amount required to be lent to certain specified sectors called priority
sector as per Reserve Bank of India guidelines. |
Total assets of the Bank increased by
16.7% from Rs. 12,760.02 billion at September 30, 2021 to Rs. 14,886.74 billion at September 30, 2022, primarily due to a 22.7% increase
in advances and 16.8% increase in investments, offset, in part, by 16.7% decrease in cash and cash equivalents.
Cash and cash equivalents
Cash and cash equivalents
include cash in hand and balances with the Reserve Bank of India and other banks, including money at call and short notice. Cash and
cash equivalents decreased by 16.7% from Rs. 1,500.44 billion at September 30, 2021 to Rs. 1,249.13 billion at September 30, 2022, primarily
due to a decrease in short term placement (liquidity adjustment facility) with Reserve Bank of India by Rs. 621.73 billion, offset, in
part, by an increase in balance with Reserve Bank of India by Rs. 200.55 billion and with United States Federal Reserve by Rs. 152.92
billion.
Investments
Total investments increased by 16.8%
from Rs. 2,852.20 billion at September 30, 2021 to Rs. 3,330.31 billion at September 30, 2022. Investments in Indian government securities
increased from Rs. 2,273.81 billion at September 30, 2021 to Rs. 2,871.75 billion at September 30, 2022. Other investments decreased
by 20.7% from Rs. 578.39 billion at September 30, 2021 to Rs. 458.56 billion at September 30, 2022 primarily due to a decrease in foreign
government securities by Rs. 68.03 billion and bonds and debentures by Rs. 39.20 billion.
The outstanding net investment in security
receipts issued by asset reconstruction companies at September 30, 2022 was Rs. 4.29 billion as compared to Rs. 16.21 billion at September
30, 2021.
Advances
Net advances increased by 22.7% from
Rs. 7,649.37 billion at September 30, 2021 to Rs. 9,385.63 billion at September 30, 2022.
Domestic advances increased by 24.0%
from Rs. 7,262.36 billion at September 30, 2021 to Rs. 9,005.72 billion at September 30, 2022 primarily due to an increase in retail
advances. Net retail advances increased by 24.6% from Rs. 4,065.08 billion at September 30, 2021 to Rs. 5,065.16 billion at September
30, 2022.
Net advances of overseas branches decreased
by 1.8% from Rs. 387.01 billion at September 30, 2021 to Rs. 379.91 billion at September 30, 2022.
Fixed and other assets
Fixed assets (net block) increased by
3.9% from Rs. 91.53 billion at September 30, 2021 to Rs. 95.09 billion at September 30, 2022.
Other assets increased by 24.0% from
Rs. 666.48 billion at September 30, 2021 to Rs. 826.58 billion at September 30, 2022 primarily due to an increase in marked-to-market
on foreign exchange and derivative transactions and interest accrued on loans and investments, offset, in part, by a decrease in Rural
Infrastructure and Development Fund and other related deposits.
Liabilities
The following table sets forth, at the
dates indicated, the principal components of liabilities (including capital and reserves).
| |
At |
Liabilities | |
September 30, 2021 | |
| |
September 30, 2022 | |
September 30, 2022 | |
|
| |
(in million, except percentages) |
Deposits | |
| Rs. 9,774,485.9 | |
| Rs. 10,645,716.1 | |
| Rs. 10,900,079.6 | |
| JPY 20,165,147.3 | |
| 11.5 | % |
Borrowings(1) | |
| 829,885.3 | |
| 1,072,313.6 | |
| 1,299,339.1 | |
| 2,403,777.3 | |
| 56.6 | |
Other liabilities | |
| 587,809.4 | |
| 689,828.0 | |
| 862,254.6 | |
| 1,595,171.0 | |
| 46.7 | |
Total liabilities | |
| 11,192,180.6 | |
| 12,407,857.7 | |
| 13,061,673.3 | |
| 24,164,095.6 | |
| 16.7 | |
Equity share capital | |
| 13,870.9 | |
| 13,899.7 | |
| 13,937.9 | |
| 25,785.1 | |
| 0.5 | |
Reserves and surplus | |
| 1,553,971.5 | |
| 1,691,220.0 | |
| 1,811,131.2 | |
| 3,350,592.7 | |
| 16.5 | |
Total liabilities (including capital and reserves) | |
| Rs. 12,760,023.0 | |
| Rs. 14,112,977.4 | |
| Rs. 14,886,742.4 | |
| JPY 27,540,473.4 | |
| 16.7 | % |
_________
| (1) | Includes borrowings in the nature of capital instruments. |
Total liabilities (including capital
and reserves) increased by 16.7% from Rs. 12,760.02 billion at September 30, 2021 to Rs. 14,886.74 billion at September 30, 2022 primarily
due to 11.5% increase in deposits, 16.4% increase in net worth and 56.6% increase in borrowings.
Deposits
Deposits increased by 11.5% from Rs.
9,774.49 billion at September 30, 2021 to Rs. 10,900.08 billion at September 30, 2022.
Term deposits increased by 10.5% from
Rs. 5,267.45 billion at September 30, 2021 to Rs. 5,821.68 billion at September 30, 2022. Savings account deposits increased by 13.8%
from Rs. 3,185.57 billion at September 30, 2021 to Rs. 3,624.84 billion at September 30, 2022 and current account deposits increased
by 10.0% from Rs. 1,321.47 billion at September 30, 2021 to Rs. 1,453.56 billion at September 30, 2022. The current and savings account
deposits increased by 12.7% from Rs. 4,507.04 billion at September 30, 2021 to Rs. 5,078.40 billion at September 30, 2022. Current and
saving accounts ratio was 46.6% at September 30, 2022 compared to 46.1% at September 30, 2021.
Average savings account deposits increased
by 17.5% from Rs. 2,894.18 billion at September 30, 2021 to Rs. 3,400.52 billion at September 30, 2022 and average current account deposits
increased by 19.1% from Rs. 1,083.06 billion at September 30, 2021 to Rs. 1,290.19 billion at September 30, 2022. Average current and
savings account deposits increased by 17.9% from Rs. 3,977.24 billion at September 30, 2021 to Rs. 4,690.72 billion at September 30,
2022.
Deposits of overseas branches increased
by 7.1% from Rs. 83.52 billion at September 30, 2021 to Rs. 89.49 billion at September 30, 2022.
Total deposits at
September 30, 2022 formed 89.3% of the funding (i.e., deposits and borrowings) as compared to 92.2% at September 30, 2021.
Borrowings
Borrowings increased by 56.6% from Rs.
829.89 billion at September 30, 2021 to Rs. 1,299.34 billion at September 30, 2022 primarily due to an increase in foreign currency term
money borrowings, bond borrowings and repurchase borrowings, offset, in part, by a decrease in subordinated bonds.
Other liabilities
Other liabilities
increased by 46.7% from Rs. 587.81 billion at September 30, 2021 to Rs. 862.25 billion at September 30, 2022 primarily due to an increase
in marked-to-market on foreign exchange and derivative transactions and contingency provision made on prudent basis.
Equity share capital and reserves
Equity share capital and reserves increased
from Rs. 1,567.84 billion at September 30, 2021 to Rs. 1,825.07 billion at September 30, 2022 primarily due to accretion to reserves
out of retained profit.
Statement of Cash Flow
Cash and cash equivalents decreased
by 25.6% from Rs. 1,678.22 billion at March 31, 2022 to Rs. 1,249.13 billion at September 30, 2022 due to net cash outflow from operating
activities and investing activities, offset, in part, by net cash inflow from financing activities. Cash and cash equivalents increased
by 12.7% from Rs. 1,331.28 billion at March 31, 2021 to Rs. 1,500.44 billion at September 30, 2021 due to net cash inflow from operating
activities, offset, in part, by net cash outflow from investing activities and financing activities.
During the six months ended September
30, 2022, the net cash outflow from operating activities of Rs. 227.43 billion was on account of an increase in advances and other assets,
offset, in part, by an increase in deposits and cash profits for the period. During the six months ended September 30, 2021, the net
cash inflow from operating activities of Rs. 481.34 billion was on account of an increase in deposits and cash profits for the period,
offset, in part, by an increase in advances.
During the six months ended September
30, 2022, the net cash outflow from investing activities of Rs. 403.70 billion was primarily on account of purchase (net of sales) of
held-to-maturity securities. During the six months ended September 30, 2021, the net cash outflow from investing activities of Rs. 215.30
billion was primarily on account of purchase (net of sales) of held-to-maturity securities.
During the six months ended September
30, 2022, the net cash inflow from financing activities was Rs. 199.86 billion primarily due to net proceeds of short-term borrowings
and proceeds from long term borrowings, offset, in part, by repayment of long-term borrowings. During the six months ended September
30, 2021, the net cash outflow from financing activities was Rs. 96.49 billion primarily due to net repayment of long-term borrowings,
offset, in part, by net proceeds from short-term borrowings.
| 4. | Material Contracts Relating
to Management, etc. |
There has been no material change since
the last ASR filed on September 28, 2022 for fiscal 2022.
| 5. | Research and Development Activities |
Please refer to “ - II. - 2. Nature
of Business”.
| IV. | STATEMENT OF FACILITIES |
| 1. | State of Major Facilities |
There has been no material change since
the last ASR filed on September 28, 2022 for fiscal 2022.
| 2. | Plan for Installation, Retirement,
etc. of Facilities |
There has been no material change since
the last ASR filed on September 28, 2022 for fiscal 2022.
| V. | STATEMENT OF FILING COMPANY |
| (1) | Total Number of Shares,
etc. |
| (i) | Total Number of Shares |
(At September 30, 2022)
Number of Shares Authorized to be Issued |
Number
of Issued Shares |
Number
of
Unissued Shares |
12,500,000,000
equity shares of Rs. 2/- each |
6,967,876,747
(1) shares |
5,532,123,253 shares |
___________
| (1) | Excludes 266,089 shares forfeited. |
(At September 30, 2022)
Bearer or Registered; Par Value or Non-Par Value |
Kind |
Number
of Issued Shares |
Names
of Listed Financial Instruments Exchanges or Registered Financial Instruments Firm Association |
Remarks |
Registered
shares, with
par value of Rs. 2/- each |
Ordinary shares |
6,967,876,747 (1)
shares |
Underlying equity shares on:
Bombay Stock Exchange;
and
National Stock Exchange of India Limited
ADRs on:
New York Stock Exchange |
Equity shares with a face
value of Rs. 2 each |
Total |
- |
6,967,876,747 (1)
shares |
- |
- |
__________
| (1) | Excludes
266,089 shares forfeited. |
| (2) | State
of Exercise of Bonds with Stock Acquisition Rights etc. with Moving Strike Clause |
Not applicable.
| (3) | Total Number of Issued Shares
and Capital Stock |
(At September 30, 2022)
Date |
Number
of
Shares on Issue |
Share
Capital
(in Rs.) |
Remarks
|
Number of Shares Increased/
(Decreased) |
Number
of Outstanding Shares After Increase/
(Decrease) (1) |
Amount of Share Capital Increased/
(Decreased) |
Amount After Share Capital
Increase/
(Decrease) |
Total
equity shares of Rs. 2/- each outstanding as on April 1, 2022 |
|
6,948,771,375 |
|
13,897,542,750
(JPY 25,710,454,088)
|
- |
During
fiscal year 2023 (Up to September 30, 2022) |
19,105,372 |
6,967,876,747 |
38,210,744
(JPY 70,689,876) |
13,935,753,494
(JPY 25,781,143,964)
|
Allotment of 19,105,372 shares
issued on exercise of options, under the Employee Stock Option Scheme 2000. |
(1) Excludes
266,089 forfeited shares.
Shareholding more than 1% of the total
number of shares
(At December 2, 2022)
Shareholder |
Address |
Shares
(million) |
%
Holding |
Deutsche
Bank Trust Company Americas
(Depository for ADS holders)
|
C/O ICICI Bank, SMS,
Empire House, 1st Floor,
414, Senapati Bapat Marg,
Lower Parel, Mumbai – 400013 |
1,264.44 |
18.13% |
Life
Insurance Corporation of India |
ICICI Bank LTD.,
SMS Dept. 1st Floor, Empire Complex
414, S. B. Marg, Lower Parel (W), Mumbai – 400013
LIC of India Investment,
M And A Dept. Central Office, Yogakshema
6th Floor East Wing, Jeevan Bima Marg, Mumbai – 400021 |
440.27 |
6.31% |
SBI
Mutual Fund |
HDFC Bank Limited,
Empire Plaza Tower-1, 4th floor,
Chandan Nagar, LBS Marg, Vikhroli
(West), Mumbai – 400083
SBI SG Global Securities Services,
P L Jeevan Seva Annexe Building,
A Wing, Gr Floor, S V Road, Santacruz (W), Mumbai – 400054
|
391.03 |
5.61% |
GIC
Private Limited |
Citibank N.A. Custody Services,
FIFC - 9th Floor, G Block, Plot
C-54 and C-55, BKC, Bandra (E), Mumbai – 400098 |
208.38 |
2.99% |
ICICI
Prudential Mutual Fund |
Citibank N.A. Custody Services,
FIFC - 9th Floor, G Block, Plot
C-54 and C-55, BKC, Bandra (E), Mumbai – 400098
HDFC Bank Limited Custody Operations,
14th Floor, Empire Plaza T-1, LBS
Marg, Chandan Nagar, Vikhroli (W) Mumbai – 400083 |
191.07 |
2.74% |
|
HSBC
Securities Services,
11th Floor, Bldg No.3, NESCO - IT
Park, NESCO Complex, Goregaon (E), Mumbai – 400063
ICICI Prudential Mutual Fund,
Knowledge Park, Western Exp Highway,
Goregoan (E) Mumbai – 400063
SBI SG Global Securities Services,
P L Jeevan Seva Annexe Building,
A Wing, Gr Floor, S V Road, Santacruz (W), Mumbai – 400054 |
|
|
HDFC
Mutual Fund |
HDFC
Bank Limited Custody Operations,
14th Floor, Empire Plaza T-1, LBS
Marg, Chandan Nagar, Vikhroli (W) Mumbai – 400083
Citibank N.A. Custody Services,
Plot C-54 and C-55,
FIFC - 9th Floor, G Block, BKC,
Bandra (E), Mumbai – 400098 |
156.47 |
2.24% |
NPS
Trust |
Aditya
Birla Sun life Pension Mgmt. Ltd.
One Indiabulls Centre, Tower-1,16th
Floor, Jupiter Mill Compound, 841 Elphinstone Mumbai – 400013
HDFC Pension Management Company
Ltd.
14th Floor Lodha Excelus, NM Joshi
Marg, Apollo Mills Compound, Mahalaxmi, Mumbai – 400011
ICICI Prudential Pension Funds Management
Co. Ltd.,
ICICI Prulife tower,1089, Appasaheb
Marath Marg Prabhadevi, Mumbai – 400025
Kotak Mahindra Pension Fund Limited, |
130.21 |
1.87% |
|
Kotak Infiniti, Bldg No. 21, Infinity
park Off Western Express Highway, General Akvaidya Marg, Malad (E) Mumbai – 400097
LIC Pension Fund Limited,
B5, Floor-5, Industrial Assurance
buliding, Veer Nariman Road, Nr EROS theatre, Churchgate, Mumbai – 400020
SBI Pension Funds Pvt Ltd.
32, 3rd Floor Maker Chamber III,
Nariman Point Mumbai – 400021
UTI Retirement Solutions Limited,
01 Floor, Unit No 2, Block B, JVPD
Scheme Gulmohar Cross Road No. 9, Andheri (W), Mumbai – 400049
|
|
|
UTI
Mutual Fund |
UTI AMC Pvt. Ltd., UTI Mutual
Fund, UTI Asset Management Company Ltd.,
Department of Fund Accounts, UTI Tower, GN Block, BKC, Bandra (E), Mumbai – 400051 |
126.81 |
1.82% |
Aditya
Birla Sun Life Mutual Fund |
Citibank
N.A. Custody Services, Plot C-54 and C-55,
FIFC - 9th Floor, G Block, BKC,
Bandra (E), Mumbai – 400098 |
96.82 |
1.39% |
Kotak
Mutual Fund |
C/O Kotak Mahindra Mutual Fund
6th Floor, Kotak Tower, Bld. No
21, Infinity Park, Off We Highway, Malad (E), Mumbai – 400098
Standard Chartered Bank Securities
Services,
3rd Floor, 23-25 Mahatma Gandhi
Road, Fort, Mumbai – 400001 |
96.02 |
1.38% |
Europacific
Growth Fund |
J.P. Morgan Chase Bank, N.A.
India Sub Custody, 6th Floor, Paradigm B Mindspace, Malad (W), Mumbai – 400064 |
93.37 |
1.34% |
Dodge
And Cox International Stock Fund |
Deutsche
Bank AG,
DB House, Hazarimal Somani Marg,
P.O. Box No. 1142, Fort, Mumbai – 400001 |
89.19 |
1.28% |
Axis Mutual Fund |
AXIS Asset Management Company Ltd.
AXIS House 1st Floor, Wadia International Centre Pandurang Budhkar Marg, Worli, Mumbai – 400025
Deutsche Bank AG,
DB House, Hazarimal Somani Marg,
P.O. Box No. 1142, Fort, Mumbai – 400001 |
87.48 |
1.25% |
Nippon
India Mutual Fund |
Deutsche
Bank AG,
DB House, Hazarimal Somani Marg,
P.O. Box No. 1142, Fort, Mumbai – 400001
Nippon India Mutual Fund,
Prabhat Colony, 7th, Off Vakola
Fly-over, Santacruz (E) Mumbai – 400055 |
84.45 |
1.21% |
SBI
Life Insurance Company |
Natraj, 6th Floor, CTS NO.
354 A, Andheri Kurla Road, Gundavali, Opp. W. E. Highway, Andheri (E), Mumbai – 400069 |
79.45 |
1.14% |
Mirae
Asset Mutual Fund |
Deutsche Bank AG,
DB House, Hazarimal Somani Marg,
P.O.Box No. 1142, Fort, Mumbai – 400001
Mirae Asset-HO,
Off CST Road, Klina, Santacruz (E),
Mumbai – 400098 |
76.74 |
1.10% |
Total |
- |
3,612.24 |
51.79% |
| 2. | Statement
of Directors and Officers |
Number of male directors and executive
officers: 11, Number of female directors and executive officers: 2 (percentage of female directors and executive officers: 15%)
(At December 2, 2022)
Position |
Name
(Age) |
Biography |
Term
as per Banking Regulation Act (9) |
Number
of Shares at December 2, 2022 |
Non-executive
Part-time Chairman |
Mr. Girish Chandra Chaturvedi
(69) |
Mr. Girish Chandra Chaturvedi
has masters degrees in physics and science (social policy in developing countries) from the University of Allahabad and the London
School of Economics respectively. He joined the Indian Administrative Service in 1977, serving at various levels across a number
of sectors, including banking, insurance, pension, health, family welfare and petroleum and natural gas. He also served as a government
nominee director on the boards of several banks, insurance companies and financial institutions. He retired in 2013 as the secretary
of the Ministry of Petroleum and Natural Gas. Currently, he is also the Chairman of the National Stock Exchange. |
June
30, 2024(1) |
Nil |
Non-executive
Director |
Mr. Uday Chitale (73) |
Mr. Uday Chitale is a chartered
accountant with professional standing of over 45 years and was a senior partner of M. P. Chitale & Co, chartered accountants.
He is also active in the field of arbitration and conciliation of commercial disputes. He has served on the boards of several companies
and was a board member of the Bank from 1997-2005 as well. He served on the global board of directors and as Vice President-Asia
Pacific of the worldwide association of accounting firms DFK International. He is also a member of the Board of Governors of National
Institute of Securities Markets promoted by Securities and Exchange Board of India. |
October
19, 2024(7) |
Nil |
Non-executive
Director |
Ms. Neelam Dhawan (63) |
Ms. Neelam Dhawan is an economics
graduate from St Stephen’s College, Delhi University and has a masters in business administration degree from the Faculty of
Management Studies, Delhi University. Ms. Dhawan has over 38 years of experience in the information technology industry. Starting
from 1982, she has held various positions across Hindustan Computers Limited, IBM, Microsoft and Hewlett Packard Enterprise. She
has been Managing Director and leader of the country businesses for 11 years for Microsoft and later Hewlett Packard in India. Her
last executive assignment was in Hewlett Packard Enterprise that of as Vice President for Global Industries, Strategic Alliances,
and Inside Sales for Asia Pacific and Japan. |
January
11, 2026(7) |
Nil |
Position |
Name
(Age) |
Biography |
Term
as per Banking Regulation Act (9) |
Number
of Shares at December 2, 2022 |
Non-executive
Director |
Mr. Subramanian Madhavan
(66) |
Mr. Subramanian Madhavan
is a chartered accountant and holds a post graduate diploma in business management from the Indian Institute of Management, Ahmedabad.
He started his career with Hindustan Unilever Limited. He had thereafter established a tax practice and served large Indian and multinational
clients. He was then a senior partner and Executive Director in PricewaterhouseCoopers Private Limited. He has around 38 years of
experience in accountancy, economics, finance, law, information technology, human resources, risk management, business management
and banking. |
April 13, 2027 |
4,000 |
Non-executive
Director |
Mr. Hari L. Mundra (73) |
Mr. Hari L. Mundra has a
bachelor of arts degree and a post graduate degree in business management from the Indian Institute of Management, Ahmedabad. He
began his career in 1971 in Hindustan Unilever Limited and was a member of its board as the Vice President and Executive Director
in charge of exports at the time he left in 1995. He subsequently held leadership positions in major Indian industrial conglomerates,
in areas including pharmaceuticals and healthcare, and petrochemicals. He has 50 years of industrial experience in India and Indonesia. |
October 25, 2024 |
Nil |
Non-executive
Director |
Mr. Radhakrishnan Nair (67) |
Mr. Radhakrishnan Nair holds
degrees in science, securities laws, management and law. He has around 40 years of experience in banking and regulation. He started
his career with Corporation Bank and also served as the Managing Director of Corporation Bank Securities Limited. He was Executive
Director at Securities and Exchange Board of India from 2005 to 2010 and Member (Finance and Investment) in the Insurance Regulatory
and Development Authority of India from 2010 to 2015. He has been a member of various committees of International Organization of
Securities Commissions and the International Association of Insurance Supervisors. |
May 1,
2026(7) |
Nil |
Position |
Name
(Age) |
Biography |
Term
as per Banking Regulation Act (9) |
Number
of Shares at December 2, 2022 |
Non-executive
Director |
Mr. Balasubramanyam Sriram
(64) |
Mr. Balasubramanyam Sriram
is a Certificated Associate of the Indian Institute of Banking and Finance and holds diplomas in international law and diplomacy
from the Indian Academy of International Law & Diplomacy and management from the All India Management Association. He has bachelors
and masters degrees in science (physics) from St. Stephen’s College, Delhi University. Mr. Sriram worked with State Bank of
India for about 37 years. Mr. Sriram was Managing Director of State Bank of Bikaner & Jaipur from 2013 to 2014, Managing Director
of State Bank of India from 2014 to 2018 and Managing Director & Chief Executive Officer of IDBI Bank Limited from June-September
2018. He is a part time member of the Insolvency and Bankruptcy Board of India. |
January 13, 2027 |
Nil |
Non-executive
Director |
Ms. Vibha Paul Rishi (62) |
Ms. Vibha Paul Rishi is an
economics graduate from Lady Shri Ram College, Delhi University has a masters in business administration with a specialisation in
marketing from the Faculty of Management Studies, University of Delhi. She has worked at senior positions in branding, strategy,
innovation and human capital around the world. She started her career with the Tata Group and was part of the core team for launching
Titan watches. She was thereafter associated with PepsiCo for 17 years in leadership roles in the areas of marketing and innovation
in India, U.S. and UK. She was one of the founding team members of PepsiCo when it started operations in India. Ms. Rishi serves
on the boards and board committees of several reputed companies. |
January
22, 2030(5) |
330
(as second holder with Ms. Amrit
Paul as 1st holder)
|
Position |
Name
(Age) |
Biography |
Term
as per Banking Regulation Act (9) |
Number
of Shares at December 2, 2022 |
Managing
Director and CEO |
Mr. Sandeep Bakhshi (62) |
Mr. Sandeep Bakhshi is an
engineer and has a management degree from Xavier School of Management in Jamshedpur. Mr. Sandeep Bakhshi joined ICICI Limited in
the year 1986. Over the years he has worked in various assignments at ICICI Limited, ICICI Lombard General Insurance Company Limited,
ICICI Bank Limited and ICICI Prudential Life Insurance Company Limited. He joined ICICI Bank Limited on June 19, 2018 as Chief Operating
Officer and was appointed as Managing Director and Chief Executive Officer of ICICI Bank Limited on October 15, 2018. |
October
3, 2023(2) |
255,000 |
Executive
Director |
Mr. Anup Bagchi (52) |
Mr. Anup Bagchi has a management
degree from the Indian Institute of Management, Bangalore and an engineering degree from the Indian Institute of Technology, Kanpur.
Mr. Bagchi joined the ICICI Group in 1992 and has worked in various areas including retail banking, corporate banking, treasury,
capital markets and investment banking. From 2011 to 2016, Mr. Anup Bagchi was the Managing Director and Chief Executive Officer
of ICICI Securities Limited. He was appointed as an Executive Director effective February 1, 2017 and was earlier responsible for
banking for retail, rural, small and medium enterprise customers as well as corporate branding for the Bank. Currently, he is responsible
for domestic and international wholesale banking, markets and proprietary trading and transaction banking businesses at the Bank. |
January
31, 2025(3) |
Nil |
Position |
Name
(Age) |
Biography |
Term
as per Banking Regulation Act (9) |
Number
of Shares at December 2, 2022 |
Executive
Director |
Mr. Sandeep Batra (56) |
Mr. Sandeep Batra is a chartered
accountant and a company secretary by qualification. He joined as Chief Financial Officer of ICICI Prudential Life Insurance Company
Limited in the year 2000 and subsequently has held positions as Group Compliance Officer of ICICI Bank Limited, Executive Director
of ICICI Prudential Life Insurance Company Limited and President at ICICI Bank Limited. He was appointed as Executive Director of
ICICI Bank Limited effective December 23, 2020 and is currently responsible for technology, credit, corporate communications, data
science and analytics, finance, operations and customer service, legal, human resources and secretarial functions and has administrative
oversight over risk management, internal audit and compliance functions. |
December
22, 2023(4) |
148,000 |
Executive
Director |
Mr. Rakesh Jha (51) |
Mr. Rakesh Jha is an engineering
graduate from the Indian Institute of Technology at Delhi and a post-graduate in management from the Indian Institute of Management,
Lucknow. He joined ICICI in 1996 and has worked in various areas including financial reporting, planning, strategy, asset-liability
management and investor relations. He was designated the Deputy Chief Financial Officer of ICICI Bank in May 2007, Chief Financial
Officer in October 2013 and Group Chief Financial Officer in June 2018. Mr. Rakesh Jha is an Executive Director on the Board of ICICI
Bank since September 2, 2022. He heads the retail banking business of the Bank. He is responsible for the retail banking, rural &
agriculture and small & medium enterprise businesses of the Bank. He also serves on the board of ICICI Lombard General Insurance
Company Limited and ICICI Venture Funds Management Company Limited. |
September
1, 2025(6) |
115,000 |
Group
Chief Financial Officer |
Mr. Anindya Banerjee (46) |
Mr. Anindya Banerjee is a
chartered accountant. He joined the ICICI Group in 1998 and initially worked in the area of corporate banking before moving to the
planning and strategy function in the corporate office. He was appointed as the Group Chief Financial Officer of the Bank with effect
from May 1, 2022. His current responsibilities include financial reporting, planning and strategy and asset-liability management. |
Regular employment |
152,500 |
| (1) | Mr.
Girish Chandra Chaturvedi was appointed as an independent Director from July 1, 2018 to June
30, 2021. Mr. Girish Chandra Chaturvedi was appointed as non-executive (part-time) Chairman
effective July 17, 2018 to June 30, 2021. Mr. Girish Chandra Chaturvedi was re-appointed
as an independent Director and as non-executive (part-time) Chairman for a period of three
years effective from July 1, 2021. |
| (2) | Mr.
Sandeep Bakhshi was appointed as a wholetime Director and Chief Operating Officer (Designate)
by the Board of Directors at its meeting held on June 18, 2018. The Reserve Bank of India
and shareholders approved his appointment as a wholetime Director effective from July 31,
2018. The Board of Directors at its meeting held on October 4, 2018 approved the appointment
of Mr. Sandeep Bakhshi as Managing Director and Chief Executive Officer for a period of five
years, subject to the approval of the Reserve Bank of India and shareholders. The Reserve
Bank of India on October 15, 2018 initially approved his appointment as Managing Director
and Chief Executive Officer for a period of three years effective from October 15, 2018 and
subsequently on August 24, 2021 approved his re-appointment from October 15, 2021 till October
3, 2023. The shareholders at the Annual General Meeting held on August 9, 2019 have approved
the appointment of Mr. Sandeep Bakhshi as Managing Director and Chief Executive Officer of
the Bank for a period effective from October 15, 2018 to October 3, 2023. Further, the Board
of Directors at its meeting held on October 22, 2022 approved the re-appointment of Mr. Sandeep
Bakhshi as Managing Director and Chief Executive Officer for a period of three years with
effect from October 4, 2023 to October 3, 2026, subject to the approval of the Reserve Bank
of India and shareholders. |
| (3) | Mr.
Anup Bagchi was appointed as a wholetime Director (designated as an Executive Director) effective
from February 1, 2017. The shareholders approved his appointment as Executive Director for
a period of five years from February 1, 2017 to January 31, 2022. The Reserve Bank of India
approved his appointment as Executive Director initially for a period of three years from
February 1, 2017 to January 31, 2020, and subsequently for a further period of two years
from February 1, 2020 to January 31, 2022. The Board of Directors at its meeting held on
April 24, 2021 approved his re-appointment as wholetime Director (designated as Executive
Director) for a period of five years or date of retirement, whichever is earlier, effective
from February 1, 2022, subject to the approval of the Reserve Bank of India and shareholders.
The shareholders at the Annual General Meeting held on August 20, 2021 approved the re-appointment
of Mr. Bagchi as a wholetime Director (designated as Executive Director) for a period of
five years or date of retirement, whichever is earlier effective from February 1, 2022, subject
to the approval of the Reserve Bank of India. The Reserve Bank of India approved the re-appointment
of Mr. Bagchi as Executive Director of the Bank for a period of three years with effect from
February 1, 2022. |
| (4) | Mr. Sandeep Batra was appointed
as a wholetime Director (designated as an Executive Director) by the Board of Directors at its meeting held on May 6, 2019 for a period
of five years effective from May 7, 2019 or the date of approval of his appointment by the Reserve Bank of India, whichever is later.
The shareholders at the Annual General Meeting held on August 9, 2019 approved the appointment of Mr. Sandeep Batra as a wholetime Director
(designated as an Executive Director) for a period of five years effective from May 7, 2019 or the date of approval from the Reserve
Bank of India, whichever is later. In line with a Reserve Bank of India letter dated October 30, 2019, the Board of Directors at its
meeting held on September 16, 2020 approved the filing of a fresh application to the Reserve Bank of India for the purpose of approval
of appointment of Mr. Sandeep Batra as a wholetime Director (designated as Executive Director) of the Bank, for a period of five years
or date of retirement, whichever is earlier, effective from September 17, 2020 or the date of approval of appointment by the Reserve
Bank of India, whichever is later. The Reserve Bank of India has approved the appointment of Mr. Sandeep Batra as an Executive Director
of the Bank for a period of three years from the date of his taking charge as an Executive Director. The Board of Directors through a
circular resolution dated December 23, 2020 recorded December 23, 2020 as the effective date of appointment and taking charge by Mr.
Sandeep Batra as a wholetime Director (designated as an Executive Director) of the Bank. |
| (5) | The Board at its meeting held on
January 22, 2022 appointed Ms. Vibha Paul Rishi as an additional (independent) director for a period of five years with effect from January
23, 2022 subject to the approval of shareholders. The shareholders through postal ballot on March 27, 2022 approved the appointment of
Ms. Vibha Paul Rishi as an independent director for a term of five consecutive years commencing from January 23, 2022 to January 22,
2027. |
| (6) | The Board of Directors at its meeting
held on April 23, 2022 approved the appointment of Mr. Rakesh Jha as wholetime Director (designated as Executive Director) for a period
of five years effective May 1, 2022 or the date of approval by the Reserve Bank of India, whichever is later. The shareholders at the
Annual General Meeting held on August 30, 2022 approved the appointment of Mr. Rakesh Jha as a wholetime Director (designated as Executive
Director) for a period of five years effective from May 1, 2022 or the date of approval of his appointment by the Reserve Bank of India,
whichever is later. The Reserve Bank of India through its letter dated September 2, 2022 has communicated its approval for the appointment
of Mr. Jha as an Executive Director of the Bank for a period of three years from the date of its approval i.e. September 2, 2022. |
| (7) | The Board of Directors of the Bank
at its Meeting held on June 28, 2022 and the shareholders at the Annual General Meeting held on August 30, 2022 approved the re-appointment
of the following Directors. |
| • | Ms. Neelam Dhawan
as an independent director of the Bank for a second term commencing from January 12, 2023
to January 11, 2026; |
| • | Mr. Uday Chitale
as an independent director of the Bank for a second term commencing from January 17, 2023
to October 19, 2024; |
| • | Mr. Radhakrishnan
Nair as an independent director of the Bank for a second term commencing from May 2, 2023
to May 1, 2026. |
| (8) | Ms. Vishakha Mulye who was appointed
as an Executive Director effective January 19, 2016 resigned with effect from May 31, 2022. |
| (9) | Dates mentioned under “term”
in respect of non-executive directors (other than the Chairman) refer to the maximum tenure permitted under the Banking Regulation Act. |
The original English interim financial
statements of ICICI Bank Limited for the six months ended September 30, 2022 presented in this document are the extracts from the Form
6-K filed with the U.S. Securities and Exchange Commission on October 27, 2022, and are prepared in accordance with accounting principles
generally accepted in India ("Indian GAAP").
This document includes the Japanese
translation of the aforementioned English interim financial statements pursuant to the provision under item 2 of Article 76 of the Regulations
Regarding Terminology, Format and Method of Preparation of Interim Financial Statements, etc. (Ministry of Finance Ordinance No. 38 of
1977).
These interim financial statements of
the Bank are summary financial information and extracted from the condensed interim financial statements for the six months ended September
30, 2022. The complete set of condensed interim financial statements for the six months ended September 30, 2022 were reviewed by the
joint statutory auditors, MSKA & Associates, Chartered Accountants and KKC & Associates LLP (formerly known as Khimji Kunverji
& Co LLP), Chartered Accountants. Since the complete set of the unaudited condensed interim financial statements were not filed with
the U.S. Securities and Exchange Commission, the same has not been included in this document.
The interim financial statements of
the Bank are presented in Indian rupees. For Japanese translation, only key amounts were translated into Japanese yen solely for the
convenience of the reader at the rate of Rs. 1 = ¥1.85, which was the telegraphic transfer customer selling exchange rate of MUFG
Bank, Ltd. as of December 1, 2022.
“Major
differences between United States and Japanese Accounting Principles and Practices” and “Major differences between Indian
and Japanese Accounting Principles and Practices” are included at the end of this section.
| 1. | Interim
Financial Statements |
Summary Profit and Loss Statement
(as per standalone Indian GAAP accounts)
| |
Six months ended | |
Six months ended |
| |
30-Sep-21 | |
30-Sep-22 |
| |
Rs. crore | |
JPY mn | |
Rs. crore | |
JPY mn |
Net interest income | |
| 22,626 | | |
| 418,581 | | |
| 27,997 | | |
| 517,945 | |
Non-interest income | |
| 8,106 | | |
| 149,961 | | |
| 9,768 | | |
| 180,708 | |
- Fee income | |
| 7,030 | | |
| 130,055 | | |
| 8,723 | | |
| 161,376 | |
-Dividend income from subsidiaries | |
| 993 | | |
| 18,371 | | |
| 995 | | |
| 18,408 | |
-Other income | |
| 83 | | |
| 1,536 | | |
| 50 | | |
| 925 | |
Less: | |
| | | |
| | | |
| | | |
| | |
Operating expense | |
| 12,609 | | |
| 233,267 | | |
| 15,727 | | |
| 290,950 | |
Core operating profit1 | |
| 18,123 | | |
| 335,276 | | |
| 22,038 | | |
| 407,703 | |
-Treasury income | |
| 686 | | |
| 12,691 | | |
| (49) | | |
| (907) | |
Operating profit | |
| 18,809 | | |
| 347,967 | | |
| 21,989 | | |
| 406,797 | |
Less: | |
| | | |
| | | |
| | | |
| | |
Total net provision | |
| 5,565 | | |
| 102,953 | | |
| 2,788 | | |
| 51,578 | |
Contingency provisions2 | |
| (1,050) | | |
| (19,425) | | |
| 2,550 | | |
| 47,175 | |
Other provisions | |
| 6,615 | | |
| 122,378 | | |
| 238 | | |
| 4,403 | |
Profit before tax | |
| 13,244 | | |
| 245,014 | | |
| 19,201 | | |
| 355,219 | |
Less: | |
| | | |
| | | |
| | | |
| | |
Provision for taxes | |
| 3,117 | | |
| 57,665 | | |
| 4,738 | | |
| 87,653 | |
Profit after tax | |
| 10,127 | | |
| 187,350 | | |
| 14,463 | | |
| 267,566 | |
| (1) | Excluding treasury income |
| (2) | The
Bank has made an additional contingency provision of Rs. 1,050 crore (US$ 133 million) in
the three months ended June 30, 2022 and Rs. 1,500 crore (US$ 184 million) in the three months
ended September 30, 2022 (At six months ended September 30, 2022: Rs. 2,550 crore (US$ 313
million)) on a prudent basis. Accordingly, the Bank holds contingency provision of Rs. 10,000
crore (US$ 1.2 billion) at September 30, 2022. |
| (3) | Prior period numbers
have been re-arranged where necessary. |
Summary Balance Sheet (as per standalone
Indian GAAP accounts)
| |
September 30, 2022 | |
March 31, 2022 |
| |
Rs. crore | |
JPY mn | |
Rs. crore | |
JPY mn |
Capital and Liabilities | |
| | | |
| | | |
| | | |
| | |
Capital | |
| 1,394 | | |
| 25,789 | | |
| 1,390 | | |
| 25,715 | |
Employee stock option outstanding | |
| 510 | | |
| 9,435 | | |
| 266 | | |
| 4,921 | |
Reserve and surplus | |
| 180,603 | | |
| 3,341,156 | | |
| 168,856 | | |
| 3,123,836 | |
Deposits | |
| 1,090,008 | | |
| 20,165,148 | | |
| 1,064,572 | | |
| 19,694,582 | |
Borrowings (includes subordinated debt) | |
| 129,934 | | |
| 2,403,779 | | |
| 107,231 | | |
| 1,983,774 | |
Other liabilities | |
| 86,225 | | |
| 1,595,162 | | |
| 68,983 | | |
| 1,276,185 | |
Total capital and liabilities | |
| 1,488,674 | | |
| 27,540,469 | | |
| 1,411,298 | | |
| 26,109,013 | |
| |
| | | |
| | | |
| | | |
| | |
Assets | |
| | | |
| | | |
| | | |
| | |
Cash and balances with Reserve Bank of India | |
| 67,095 | | |
| 1,241,258 | | |
| 109,523 | | |
| 2,026,176 | |
Balance with banks and money at call and short notice | |
| 57,818 | | |
| 1,069,633 | | |
| 58,300 | | |
| 1,078,550 | |
Investments | |
| 333,031 | | |
| 6,161,074 | | |
| 310,241 | | |
| 5,739,459 | |
Advances | |
| 938,563 | | |
| 17,363,416 | | |
| 859,020 | | |
| 15,891,870 | |
Fixed assets | |
| 9,510 | | |
| 175,935 | | |
| 9,374 | | |
| 173,419 | |
Other assets | |
| 82,657 | | |
| 1,529,153 | | |
| 64,840 | | |
| 1,199,539 | |
Total Assets | |
| 1,488,674 | | |
| 27,540,469 | | |
| 1,411,298 | | |
| 26,109,013 | |
| (1) | Prior
period figures have been re-grouped/re-arranged where necessary. |
Consolidated Financial Results
|
Six
months ended |
Year
ended |
September
30,
2022 |
September
30,
2021 |
March
31,
2022 |
Rs.
crore |
JPY
mn |
Rs.
crore |
JPY mn |
Rs.
crore |
JPY
mn |
(Unaudited) |
(Unaudited) |
(Audited) |
Interest
earned |
55,009.09 |
1,017,668.17 |
46,093.16 |
852,723.46 |
95,406.87 |
1,765,027.09 |
-Interest/discount
on advances/bills |
39,315.57 |
727,338.05 |
32,185.92 |
595,439.52 |
66,886.54 |
1,237,400.99 |
-Income
on investments |
12,940.87 |
239,406.10 |
10,982.19 |
203,170.52 |
21,990.64 |
406,826.84 |
-Interest
on balances with Reserve Bank of India and other inter-bank funds |
1,002.93 |
18,554.21 |
519.01 |
9,601.69 |
1,819.60 |
33,662.60 |
-Others |
1,749.72 |
32,369.81 |
2,406.04 |
44,511.73 |
4,710.09 |
87,136.66 |
Other
income |
29,387.46 |
543,668.01 |
28,743.30 |
531,751.05 |
62,129.45 |
1,149,394.83 |
TOTAL
INCOME |
84,396.55 |
1,561,336.18 |
74,836.46 |
1,384,474.51 |
157,536.32 |
2,914,421.92 |
Interest
expended |
23,086.03 |
427,091.56 |
20,160.37 |
372,966.85 |
41,166.67 |
761,583.40 |
Operating
expenses |
37,690.03 |
697,265.55 |
34,137.85 |
631,550.22 |
73,151.73 |
1,353,307.00 |
-Employee
cost |
7,263.07 |
134,366.80 |
5,993.69 |
110,883.27 |
12,341.60 |
228,319.60 |
-Other
operating expenses |
30,426.96 |
562,898.75 |
28,144.16 |
520,666.95 |
60,810.13 |
1,124,987.40 |
TOTAL
EXPENDITURE (excluding provisions and contingencies) |
60,776.06 |
1,124,357.11 |
54,298.22 |
1,004,517.07 |
114,318.40 |
2,114,890.40 |
OPERATING
PROFIT (Profit before provisions and contingencies) |
23,620.49 |
436,979.07 |
20,538.24 |
379,957.44 |
43,217.92 |
799,531.52 |
Provisions
(other than tax) and contingencies |
2,783.76 |
51,499.56 |
5,744.84 |
106,279.54 |
8,976.65 |
166,068.02 |
PROFIT
FROM ORDINARY ACTIVITIES BEFORE EXCEPTIONAL ITEMS AND TAX |
20,836.73 |
385,479.51 |
14,793.40 |
273,677.90 |
34,241.27 |
633,463.50 |
Exceptional
items |
|
|
|
|
|
|
Add:
Share of profit in associates |
517.78 |
9,578.93 |
382.68 |
7,079.58 |
754.43 |
13,956.95 |
PROFIT
FROM ORDINARY ACTIVITIES BEFORE TAX |
21,354.51 |
395,058.44 |
15,176.08 |
280,757.48 |
34,995.70 |
647,420.45 |
Tax
expense |
5,295.11 |
97,959.54 |
3,686.82 |
68,206.17 |
8,457.44 |
156,462.64 |
-Current
period tax |
5,372.40 |
99,389.40 |
3,460.19 |
64,013.52 |
7,404.45 |
136,982.33 |
-Deferred
tax |
(77.29) |
(1,429.86) |
226.63 |
4,192.65 |
1,052.99 |
19,480.31 |
Less:
Share of profit/(loss) of minority shareholders |
667.88 |
12,355.78 |
634.65 |
11,741.02 |
1,428.16 |
26,420.96 |
NET
PROFIT FROM ORDINARY ACTIVITIES AFTER TAX |
15,391.52 |
284,743.12 |
10,854.61 |
200,810.29 |
25,110.10 |
464,536.85 |
Extraordinary
items (net of tax expenses) |
.. |
.. |
.. |
.. |
.. |
.. |
NET
PROFIT FOR THE PERIOD |
15,391.52 |
284,743.12 |
10,854.61 |
200,810.29 |
25,110.10 |
464,536.85 |
Paid-up
equity share capital (face value Rs. 2/- each) |
1,393.79 |
25,785.12
|
1,387.09 |
25,661.17
|
1,389.97 |
25,714.45 |
Reserves
excluding revaluation reserves |
190,007.24 |
3,515,133.94 |
163,965.39 |
3,033,359.72 |
177,167.61 |
3,277,600.79 |
Earning
per share (EPS) |
|
|
|
|
|
|
Basic
EPS before and after extraordinary items, net of tax expense (not annualized)
(in Rs.) (in JPY) |
22.13 |
409.41 |
15.67 |
289.90 |
36.21 |
669.89 |
Diluted
EPS before and after extraordinary items, net of tax expense (not annualized)
(in Rs.) (in JPY) |
21.66 |
400.71 |
15.34 |
283.79 |
35.44 |
655.64 |
| (1) | Legal
and Regulatory Proceedings |
There has been no material change in
legal and regulatory proceedings, since the last ASR filed on September 28, 2022 for fiscal 2022, except for the following:
Litigation
A number of litigations and claims against
ICICI Bank and its directors are pending in various forums. The claims on ICICI Bank mainly arise in connection with civil cases involving
allegations of service deficiencies, property or labor disputes, fraudulent transactions, economic offences and other cases filed in
the normal course of business. We are also subject to counterclaims arising in connection with our enforcement of contracts and loans.
A provision is created where an unfavorable outcome is deemed probable and in respect of which a reliable estimate can be made. In view
of the inherent unpredictability of litigation and for cases where the claim amount sought is substantial, the actual cost of resolving
litigations may be substantially different from the provision held.
We held a total provision of Rs. 614
million at the end of the first half of fiscal 2023 for 672 cases with claims totaling to Rs. 1.5 billion, where an unfavorable outcome
was deemed probable and in respect of which a reliable estimate could be made.
For cases where an unfavorable outcome
is deemed to be reasonably possible but not probable, the amount of claims is included in contingent liabilities. At the end of the first
half of fiscal 2023, such claims amounted to a total of Rs. 3.1 billion relating to 49 cases. It was not possible to estimate the possible
loss or range of possible losses for these cases due to the nature of the cases and other external factors. For cases where the possibility
of an unfavorable outcome is deemed remote, we have not made a provision, nor have we included the amount of the claims in these cases
in contingent liabilities.
In some instances, civil litigants have
named our directors as co-defendants in legal proceedings against ICICI Bank. There were 367 such cases at the end of the first half
of fiscal 2023.
Management believes, based on consultation
with counsel, that the claims and counterclaims filed against us in the above legal proceedings that are assessed as remote are frivolous
and untenable and their ultimate resolution will not have a material adverse effect on our results of operations, financial condition
or liquidity. Based on a review of other litigations by Legal Group, management believes that the outcome of such other matters will
also not have a material adverse effect on our financial position, results of operations or cash flows.
At the end of the first half of fiscal
2023, there were 118 ongoing litigations (including those where the likelihood of our incurring liability is assessed as ‘probable’,
‘possible’ and ‘remote’), each involving a claim of Rs. 10 million or more against us, with an aggregate amount
of Rs. 860.2 billion (to the extent quantifiable and including amounts claimed jointly and severally from us and other parties).
| • | In fiscal 2019, the Audit Committee
under direction given by the Board of Directors of the Bank had instituted an independent enquiry to consider various allegations relating
to the former Managing Director and Chief Executive Officer, Ms. Chanda Kochhar. The enquiry was supported by an external counsel and
a forensic firm. The allegations levelled against Ms. Kochhar included nepotism, quid pro quo and claims that Ms. Kochhar, by not disclosing
conflicts of interest caused by certain transactions between certain borrowers of the Bank and entities controlled by Ms. Kochhar’s
spouse, committed infractions under applicable regulations and the Bank’s Code of Conduct. While the enquiry was underway, the
Board accepted Ms. Kochhar’s request for early retirement, while noting that the enquiry would remain unaffected by this and certain
benefits would be subject to the outcome of the enquiry. Subsequently, on consideration of the enquiry report and its conclusions, the
Board of Directors decided to treat the separation of Ms. Chanda Kochhar from the Bank as a ‘Termination for Cause’ under
the Bank’s internal policies, schemes and the Code of Conduct, with all attendant consequences. |
In January 2020, the Bank instituted
a recovery suit against Ms. Kochhar for inter alia the clawback of bonus paid from April 2009 to March 2018. Ms. Kochhar also filed a
suit before Bombay High Court in January 2022 contending that the termination of her employment is invalid and she is entitled to all
the Employee Stock Options, which were originally allocated to her. An alternative claim has been made for damages of Rs. 17.3 billion
against the Bank. Both these suits along with interim applications are being heard by the Bombay High Court. In November 2022, the Bombay
High Court rejected an interim application filed by Ms. Kochhar and held that prima facie the revocation of the early retirement acceptance
by the Bank was valid and restrained Ms. Kochhar from dealing with the Employee Stock Options, already exercised by her during the period
from October 2018 to January 2019 while allowing the interim application filed by the Bank.
Enquiries by government authorities
and regulatory agencies in the matter are continuing and the Bank has a cooperative posture for such enquiries and requests emanating
from such authorities and agencies. The Securities and Exchange Board of India issued a show-cause notice to Ms. Kochhar and to the Bank
in May 2018 in relation to the allegations. In November 2020, the Securities and Exchange Board of India issued a modified show cause
notice to the Bank and responses were submitted by the Bank to both the show cause notices. The Central Bureau of Investigation had also
initiated a preliminary enquiry and in January 2019, the Central Bureau of Investigation filed a first information report against Ms.
Kochhar, her spouse and certain borrowers of the Bank and their promoters, accusing them of cheating the Bank. The first information
report states that certain individuals, who were on the board of directors of the Bank and were part of committees (that sanctioned credit
facilities to the concerned borrower group when the alleged transactions occurred), may also be investigated. These include the present
Managing Director and Chief Executive Officer of the Bank and the present Managing Director of the Bank’s life insurance subsidiary.
Authorities such as the Enforcement Directorate and Income-tax authorities are also probing the matter.
In the event that the Bank is found
by the Securities and Exchange Board of India or the Central Bureau of Investigation or by any other authority or agency to have violated
applicable laws or regulations, the Bank could become subject to legal and regulatory sanctions that may materially and adversely affect
our reputation and may impact results of operations or financial condition.
| • | On October 3, 2022, ICICI Bank
Limited’s New York Federal Branch entered into a consent order with its federal banking supervisor, the Office of the Comptroller
of the Currency, which requires the Bank’s New York Federal Branch to enhance certain processes in its Bank Secrecy Act/Anti-Money
Laundering program and establish and maintain an effective Sanctions Compliance program. The consent order does not involve any monetary
penalty. The consent order was published by the Office of the Comptroller of the Currency on its website on October 20, 2022. |
The observations made by the Office
of the Comptroller of the Currency are restricted only to the New York Federal Branch of ICICI Bank Limited which constitutes 0.61% of
ICICI Bank’s total assets as on June 30, 2022 and the consent order will not have a material adverse effect on its business, nor
does the consent order restrict any of the New York Federal Branch’s existing activities, apart from requiring the corrective actions
as specified under the consent order.
The Bank’s New York Federal Branch
is committed to taking all necessary and appropriate steps to address the aspects identified and implement the corrective actions required
by the Office of the Comptroller of the Currency.
Not applicable.
| 3. | Major Differences between United
States and Japanese Accounting Principles and Practices |
The financial statements of the Bank
for the year ended March 31, 2022 include notes describing the differences between accounting principles generally accepted in India
(“Indian GAAP”) and those in the United States of America (“U.S. GAAP”) and disclose net income and stockholders’
equity under U.S. GAAP. The significant differences between the accounting policies under U.S. GAAP and Japanese accounting principles
are summarized below:
| (1) | Principles of consolidation |
The Bank consolidates entities in which
it holds, directly or indirectly, more than 50% of the voting rights, except the entities in which the control does not rest with the
Bank. The Bank also consolidates entities deemed to be variable interest entities (VIEs) where the Bank is determined to be the primary
beneficiary under ASC Subtopic, 810-10, “Consolidation – Overall”, “Consolidation of Variable Interest Entities”.
Under U.S. GAAP, an entity is called a VIE if it has (1) equity that is insufficient to permit the entity to finance its activities without
additional subordinated financial support from other parties, or (2) equity investors that cannot direct the activities of a legal entity
that most significantly impact the entity’s economic performance, or that do not have an obligation to absorb the expected losses
or the right to receive the expected residual returns of the entity. Further, under U.S. GAAP, when an entity loses a control in its
former subsidiary, an entity is required to derecognize assets and liabilities (along with non-controlling interest) of the former subsidiary
from consolidated financial statements and fair value its retained interest in former subsidiary on the date of deconsolidation. Any
difference between the fair value of retained interest in former subsidiary and carrying value of assets and liabilities (along with
non-controlling interest) of the former subsidiary is recognized as gain or loss on deconsolidation in earning.
Under Japanese accounting principles,
concept of variable interest entities is not used to determine the scope of consolidation. In addition, if an entity loses control of
a former subsidiary and the former subsidiary becomes an associate, the difference between the interest and the sale price is recorded
as gain or loss on sale in the consolidated statement of income. The remaining interest is recorded as an equity method investment in
an affiliate. If a subsidiary ceases to be an affiliated company due to the sale of its shares, the difference between the interest and
the sale price is recorded as gain or loss on sale in the consolidated statement of income. Investments in the remaining investee are
valued at the carrying amount of the parent company's individual balance sheet.
| (2) | Venture capital investments |
The Bank’s venture capital funds
carry their investments at fair value, with changes in fair value on venture capital investments recognized as gain/loss in the profit
and loss account under U.S. GAAP.
Under Japanese accounting principles,
there is no specific accounting standard for venture capital investments, and accounting for such investments should follow general accounting
standards for investments in securities.
| (3) | Fair
value accounting of financial instruments |
The Bank, converted a portion of its
loan to certain entities into equity as per strategic debt restructuring guidelines issued by the Reserve Bank of India. Under U.S. GAAP,
these entities were considered as equity affiliates under ASC subtopic 323-10 because of deemed significant influence due to ownership
interest and management rights. The Bank opted for fair value option of these equity affiliates under ASC Topic 825 ‘Financial
Instruments’. Accordingly, fair value changes in the loans, guarantees and investments were accounted through income statement.
Under Japanese accounting principles,
fair value option for financial instruments such as above is not allowed.
The Bank does not amortize goodwill
but instead tests goodwill for impairment at least annually.
Under Japanese accounting principles,
goodwill arising from business combinations is required to be amortized systematically, over a period not exceeding 20 years. Also, goodwill
is subject to an impairment testing.
Under U.S. GAAP, loan origination fees
(net of certain costs) are amortized over the period of the loans as an adjustment to the yield on the loan.
Under Japanese accounting principles,
there is no specific accounting standard for amortization of loan origination fees.
The Bank has designated certain derivatives
as fair value hedges. Under fair value hedge accounting, changes in fair value of derivatives are recognized in the profit and loss account
along with the changes in fair value of hedged items.
Under Japanese accounting principles,
gains and losses arising from changes in fair value of both hedging items and hedging instruments are directly recognized in equity,
net of tax effect.
| (7) | Fair Value Measurements |
Under U.S. GAAP, ASC Topic 820 “Fair
Value Measurements and Disclosures” establishes a single authoritative definition of fair value, sets out a framework for measuring
fair value, and requires additional disclosures for instruments carried at fair value.
Under Japanese accounting principles,
“Practical Guidelines Concerning Accounting for Financial Instruments” provides guidance on fair value and “Practical
Treatment for Measuring Fair Value of Financial Assets” has also been issued, but there were no specific standards equivalent to
U.S. GAAP for fair value measurement exist.
However, from the beginning of the fiscal
year starting on or after April 1, 2021, ASBJ Statement No. 30 "Accounting Standard for Calculation of Fair Value" and ASBJ
Guidance No. 31 "Guidance on Accounting Standard for Calculation of Fair Value" have been applied. As a result, U.S. GAAP and
Japanese GAAP have similar concepts of fair value, but Japanese GAAP covers financial instruments and inventories held for trading purposes
only. Equity securities and others for which market prices are not available shall be carried in the balance sheet at the acquisition
cost in accordance with conventional ASBJ Statement No. 10, "Accounting standards for financial instruments".
| (8) | Allowance for impairment losses
on available-for-sale debt securities |
Under U.S. GAAP, ASC Topic 326 “Financial
Instruments – Credit Losses” requires an entity to identify whether the decline in the fair value below the amortized cost
basis of the debt security has resulted from credit loss or other factors. Impairment allowance relating to credit losses are to be recognized
in earnings and the non-credit risk component in other comprehensive income. However, the allowance should be limited by the amount that
the fair value is less than the amortized cost basis. If an entity has the intent to sell the debt security, or if it is more likely
than not that the entity will be required to sell the debt security before recovery of its amortized cost basis, any allowance for credit
losses shall be written off and the amortized cost basis shall be written down to the debt security’s fair value at the reporting
date with any incremental impairment reported in earnings.
In Japan, impairment is not distinguished
between the credit risk component and the non-credit risk component, and the entire amount of impairment including the non-credit risk
component is recognized as a loss.
| (9) | Accounting for Equity Securities |
Under U.S. GAAP, in accordance with
ASC Topic 321-10-35 “Equity Securities – Subsequent Measurement”, equity securities are subsequently measured at fair
value in the balance sheet, and unrealized holding gains and losses are included in earnings. However, equity securities without readily
determinable fair values are measured by electing either a) at fair value and the change is recognized in earnings or b) measured at
cost minus impairment plus/minus changes resulting from observable price changes for identical or similar investment of the same issuer,
and the adjustment is recognized in earnings.
In Japan, equity securities are measured
in accordance with their classification (trading securities, subsidiary and associates’ securities, available-for-sale securities).
The trading securities are marked-to-market through earnings. Investments in subsidiaries and associates’ securities are carried
in the balance sheet at cost. Available-for-sale securities are marked-to-market with changes are recognized through equity and losses
may be recognized through earnings. The securities for which the market price is not available are carried at cost. Investment in subsidiary
and associates’ securities as well as available-for-sale securities are subject to impairment accounting.
In accordance with ASC Topic 715 “Compensation
– Retirement Benefit” under U.S. GAAP, net pension cost represents service cost, interest cost, actual return on plan assets,
amortization of prior service liability and others. Amortization of unrecognized gains and losses (actuarial gains and losses, prior
service cost) is included in net periodic benefit cost if, as of the beginning of the year, the net actuarial gain or loss exceeds ten
percent of the greater of the projected benefit obligation (“PBO”) or the fair value of the plan assets (“corridor
approach”). Any differences between net pension cost charged against income and the amount actually funded is recorded as accrued
or prepaid pension cost.
In addition, the difference between
the plan assets and the PBO is recognized on the balance sheet as assets or liabilities, and unrecognized gains and losses which are
not recognized in current net pension cost, net of tax effect, are recorded as a component of accumulated other comprehensive income.
The difference between the plan assets recorded in accumulated other comprehensive income and PBO is subsequently amortized into net
pension cost and recycled from accumulated other comprehensive income.
In Japan, similar accounting treatment
is also required for the accounting of unrecognized prior year service costs and actuarial gains or losses; however, the corridor approach
is not allowed.
| (11) | Post-retirement
Benefits other than pensions |
ASC Topic 715 also requires the recognition
of costs related to post-retirement benefits on an accrual basis over the expected service period of the employees rather than expensing
such costs as incurred. In addition, unrecognized gains and losses which are not recognized in current net benefit cost, net of tax effect,
are recorded as a component of accumulated other comprehensive income.
In Japan, such plans are not commonly
provided and therefore no specific accounting standards exist and such costs are expensed as incurred as a practice.
| (12) | Accounting for Uncertainty
in Income Taxes |
ASC Topic 740, “Income Taxes”
addresses the recognition and measurement of uncertain tax positions taken or expected to be taken in income tax returns. Under the standard,
the financial statement effects of a tax position are recognized when it is more likely than not, based on the technical merits, that
the position will be sustained upon examination by the relevant taxing authority. The standard also provides guidance on de-recognition,
classification, interest and penalties, accounting in interim periods, and disclosure of uncertain tax positions.
In Japan, no accounting standard has
been established for uncertainty in tax positions.
| (13) | Leases (lessee’s accounting) |
Under U.S. GAAP, a right to use asset
and a lease liability are required to be recognized at the commencement of the lease for all leases on adoption of ASC Topic 842 - “Leases”
and a single lease cost is recognized, which is calculated such that the cost of the operating lease is allocated over the lease term
generally on a straight line basis.
In Japan, lease contracts are classified
as finance lease and operating lease, and for a finance lease, lease assets and lease liability are recognized. In addition, finance
lease is accounted for in the same way as buy/ sell transaction, and operating lease transactions are accounted for in the same way as
rental transaction.
| (14) | Allowance
for expected credit losses |
Under U.S. GAAP, as per ASC Topic 326-
Financial Instruments – Credit Losses, the allowance for lifetime expected credit losses on financial receivables are to be computed
after considering the past and current available information, which would reflect current estimation of all lifetime expected credit
losses. An entity is required to measure lifetime expected credit losses of financial assets on a collective (pool) basis when similar
risk characteristic(s) exist. If an entity determines that a financial asset does not share risk characteristics with its other financial
assets, the entity shall evaluate the financial asset for lifetime expected credit losses on an individual basis. If a financial asset
is evaluated on an individual basis, an entity also should not include it in a collective evaluation. That is, financial assets should
not be included in both collective assessments and individual assessments.
In Japan, general and specific reserves
are established for loan losses deemed to be uncollectible by management. General reserve for normal receivables shall be estimated using
reasonable criteria established in accordance with the condition of the receivables, such as the historical credit loss percentage, either
by regarding all receivables as a whole, or by classifying the receivables into subclasses or similar receivables. Specific reserve applied
to receivables that are individually identified as being uncollectible, are established based on a solvency analysis of each borrower.
| 4. | Major Differences between Indian
and Japanese Accounting Principles and Practices |
The financial statements of the Bank
are prepared in accordance with generally accepted accounting principles in India. The significant differences between the accounting
policies adopted by the Bank and Japanese accounting principles are summarized below:
| (1) | Principles
of consolidation |
Entities, in which the Bank holds, directly
or indirectly, through subsidiaries and other consolidating entities, more than 50.00% of the voting rights or where it exercises control,
over the composition of board of directors/governing body to obtain economic benefit from their activities, are fully consolidated on
a line-by-line basis. Investments in entities where the Bank has the ability to exercise significant influence are accounted for under
the equity method of accounting and the pro-rata share of their profit/(loss) is included in the consolidated profit and loss account.
Assets, liabilities, income and expenditure of jointly controlled entities are consolidated using the proportionate consolidation method.
Under this method, the Bank’s share of each of the assets, liabilities, income and expenses of the jointly controlled entity is
reported in separate line items in the consolidated financial statements. The Bank does not consolidate entities where the significant
influence/control is intended to be temporary or entities which operate under severe long-term restrictions that impair their ability
to transfer funds to parent/investing entity.
Under Japanese accounting principles,
jointly controlled entities are treated as affiliate and accounted for using equity method accounting, when they meet certain requirement,
and there is no concept of proportionate consolidation method. Japanese accounting principle is silent about consolidation of entities
with lack of their ability to transfer funds to parents.
Under Japanese accounting principles,
on acquisition of control in investee company, which was earlier accounted as an equity affiliate, investment in equity affiliate needs
to be re-measured at fair value on acquisition date with resulting gain/loss accounted through profit and loss account.
| (2) | Sale of stake in subsidiary
company |
Under Indian GAAP,
gain or loss on sale of equity stake in a subsidiary company is recognized in the income statement.
Under Japanese accounting
principles, when the parent’s control over a subsidiary continues, the difference between the amount of parent’s share in
the subsidiary pertaining to partial disposition and the sales proceeds is reflected in capital surplus, and not recognized in the income
statement.
The Bank transfers commercial and consumer
loans through securitization transactions. The transferred loans are de-recognized and gains/losses are accounted for, only if the Bank
surrenders the rights to benefits specified in the underlying securitized loan contract. Recourse and servicing obligations are accounted
for net of provisions.
In accordance with the Reserve Bank
of India guidelines for securitization of standard assets, with effect from February 1, 2006, the profit/premium arising from securitization
is amortized over the life of the securities issued or to be issued by the special purpose vehicle to which the assets are sold. With
effect from May 7, 2012, the Reserve Bank of India guidelines require the profit/premium arising from securitization to be amortized
based on the method prescribed in the guidelines. As per the Reserve Bank of India guidelines issued on September 24, 2021, gain realized
at the time of securitization of loans is accounted through profit and loss account on completion of transaction. The Bank accounts for
any loss arising from securitization immediately at the time of sale.
The unrealized gains, associated with
expected future margin income is recognized in profit and loss account on receipt of cash, after absorbing losses, if any.
Net income arising from sale of loan
assets through direct assignment with recourse obligation is amortized over the life of underlying assets sold and net income from sale
of loan assets through direct assignment, without any recourse obligation, is recognized at the time of sale. Net loss arising on account
of direct assignment of loan assets is recognized at the time of sale. As per the Reserve Bank of India guidelines issued on September
24, 2021, any loss or realized gain from sale of loan assets through direct assignment is accounted through profit and loss account on
completion of transaction.
The acquired loans is carried at acquisition
cost. In case premium is paid on a loan acquired, premium is amortized over the loan tenure.
In accordance with Reserve Bank of India
guidelines, in case of non-performing/ loans sold to Asset Reconstruction Company, the Bank reverses the excess provision in profit and
loss account in the year in which amounts are received. Any shortfall of sale value over the net book value on sale of such assets is
recognized by the Bank in the year in which the loan is sold.
Under Japanese accounting principles,
the transfer of loans is recognized as sales and the resulting gains or losses are recognized if de-recognition requirements for financial
assets under the financial component approach are met.
| (4) | Share-based compensation |
Until March 31, 2021, the Bank recognized
cost of stock options granted under Employee Stock Option Scheme, using intrinsic value method. Under Intrinsic value method, options
cost is measured as the excess, if any, of the fair market price of the underlying stock over the exercise price on the grant date. The
fair market price is the closing price on the stock exchange with highest trading volume of the underlying shares, immediately prior
to the grant date.
Pursuant to Reserve Bank of India clarification
dated August 30, 2021, the cost of stock options granted after March 31, 2021 is recognized based on fair value method. The cost of stock
options granted up to March 31, 2021 continues to be recognized on intrinsic value method.
The cost of stock options is recognized
in the profit and loss account over the vesting period.
Under Japanese accounting principles,
the intrinsic value based method is not used and the compensation expenses are accounted for based on the fair value at the grant date.
Under Indian GAAP, defined benefit plans
are accounted for based on actuarial valuation with actuarial gains and losses recognized directly in the profit and loss account.
Under Japanese accounting principles,
defined benefit plans are accounted for based on the actuarial calculations, with actuarial gains or losses being amortized over a certain
period of years within the average remaining service period.
| (6) | Mark-to-market of securities |
The Bank carries the held to maturity
securities at the acquisition/amortized cost. The available for sale and held for trading securities are valued scrip-wise. Depreciation/appreciation
on securities, other than those acquired by way of conversion of outstanding loans, is aggregated for each category. Net appreciation
in each category under each investment classification, if any, being unrealized, is ignored, while net depreciation is provided for.
The depreciation on securities acquired by way of conversion of outstanding loans is fully provided for. Non-performing investments are
identified based on the Reserve Bank of India guidelines. The unrealized gains and losses of the Bank’s consolidated venture capital
investments are transferred to Reserves and Surplus.
Under Japanese accounting principles,
unrealized gains and losses on trading securities are recognized in the profit and loss account. For available for sale securities, unrealized
gain is principally recorded to the equity section, but it is allowed to record unrealized losses in the profit and loss account. Held
to maturity securities are recorded on an amortized cost basis. Additionally, under Japanese accounting principles, there is no specific
accounting standard for venture capital investments, and accounting for such investments should follow general accounting standards for
investments in securities.
| (7) | Acquisition costs of securities |
Costs including brokerage and commission
pertaining to investments, paid at the time of acquisition and broken period interest (the amount of interest from the previous interest
payment date till the date of purchase of instruments) on debt instruments, are charged to the profit and loss account.
Under Japanese accounting principles,
brokerage and commission costs paid at acquisition are included in acquisition costs of securities.
| (8) | Provisions for loan losses |
The Bank classifies its loans and advances,
including at overseas branches and over-dues arising from crystalized derivative contracts, into performing and non-performing assets
in accordance with Reserve Bank of India guidelines. Loans and advances held at the overseas branches that are identified as impaired
as per host country regulations, but which are standard as per extant Reserve Bank of India guidelines are classified as non-performing
assets to the extent of amount outstanding in the respective host country. In accordance with the Reserve Bank of India circular dated
April 17, 2020, the moratorium granted to certain borrowers is excluded from the determination of number of days past-due/out-of-order
status for the purpose of asset classification. Further, non-performing assets are classified into sub-standard, doubtful and loss assets
based on the criteria stipulated by Reserve Bank of India. Interest on nonperforming advances is transferred to an interest suspense
account and not recognized in profit and loss account until received.
The Bank considers an account as restructured,
where for economic or legal reasons relating to the borrower’s financial difficulty, the Bank grants concessions to the borrower,
that the Bank would not otherwise consider. The moratorium granted to the borrowers based on Reserve Bank of India guidelines is not
accounted as restructuring of loan. The Reserve Bank of India guidelines on ‘Resolution Framework for COVID-19-related Stress’
provide a prudential framework for resolution plan of certain loans. The borrowers where resolution plan was implemented under these
guidelines are classified as standard restructured.
In the case of corporate loans and advances,
provisions are made for sub-standard and doubtful assets at rates prescribed by the Reserve Bank of India. Loss assets and the unsecured
portion of doubtful assets are fully provided. For impaired loans and advances held in overseas branches, which are performing as per
Reserve Bank of India guidelines but are classified as non-performing assets based on host country guidelines, provisions are made as
per the host country regulations. For loans and advances held in overseas branches, which are non-performing assets both as per the Reserve
Bank of India guidelines and as per the host country guidelines, provisions are made at the higher of the provisions required under Reserve
Bank of India regulations and host country regulations. Provision on homogeneous retail loans and advances, subject to minimum provisioning
requirements of Reserve Bank of India, are assessed at a borrower level, on the basis of the ageing of the loans. The specific provisions
on non-performing retail loans and advances held by the Bank are higher than the minimum regulatory requirements.
In respect of non-retail loans reported
as fraud to the Reserve Bank of India, the entire amount is provided for over a period not exceeding four quarters starting from the
quarter in which fraud has been detected. In respect of non-retail loans where there has been delay in reporting the fraud to the Reserve
Bank of India or which are classified as loss accounts, the entire amount is provided immediately. In case of fraud in retail accounts,
the entire amount is provided immediately. In respect of borrowers classified as non-cooperative borrowers or wilful defaulters, the
Bank makes accelerated provisions as per guidelines issued by the Reserve Bank of India.
The Bank holds specific provisions against
non-performing loans and advances and against certain performing loans and advances in accordance with the Reserve Bank of India directions,
including Reserve Bank of India direction for provision on accounts referred to National Company Law Tribunal under the Insolvency and
Bankruptcy Code, 2016.
The Bank makes provision on restructured
loans subject to minimum requirements as per Reserve Bank of India guidelines. Provision due to diminution in the fair value of restructured/rescheduled
loans and advances is made by the Bank in accordance with the applicable Reserve Bank of India guidelines. Non-performing and restructured
loans are upgraded to standard as per the extant Reserve Bank of India guidelines or host country regulations, as applicable.
In terms of Reserve Bank of India guideline,
the non-performing assets are written-off in accordance with the Bank’s policy. Amounts recovered against bad debts written-off
are recognized in the profit and loss account.
The Bank maintains general provision
on performing loans and advances in accordance with the Reserve Bank of India guidelines, including provisions on loans to borrowers
having unhedged foreign currency exposure, provisions on loans to specific borrowers in specific stressed sectors, provision on exposures
to step-down subsidiaries of Indian companies and provision on incremental exposure to borrowers identified as per large exposure framework
of Reserve Bank of India. For performing loans and advances in overseas branches, the general provision is made at the higher of the
host country regulations requirement and the Reserve Bank of India requirement.
In addition to the provisions required
to be held according to the asset classification status, provisions are held for individual country exposures including indirect country
risk (other than for home country exposure). The countries are categorized into seven risk categories namely insignificant, low, moderately
low, moderate, moderately high, high and very high, and provisioning is made on exposures exceeding 180 days on a graded scale ranging
from 0.25% to 25%. For exposures with contractual maturity of less than 180 days, provision is required to be held at 25% of the rates
applicable to exposures exceeding 180 days. The indirect exposure is reckoned at 50% of the exposure. If the country exposure (net) of
the Bank in respect of each country does not exceed 1% of the total funded assets, no provision is required on such country exposure.
The Bank makes additional provisions
as per Reserve Bank of India guidelines for the cases where viable resolution plan has not been implemented within the timelines prescribed
by the Reserve Bank of India, from the date of default. These additional provisions are written-back on satisfying the conditions for
reversal as per Reserve Bank of India guidelines.
Following a prudent approach, the Bank
has made a Covid-19 related provision on certain borrowers, including those who had taken moratorium at any time during fiscal 2021 under
the extant Reserve Bank of India guidelines. This provision is included as contingency provision in the Bank’s books. The Bank
also makes additional contingency provision on certain standard assets. The contingency provision is included in ‘Other Liabilities
and Provisions’.
The Bank has a Board approved policy
for making floating provision, which is in addition to the specific and general provisions made by the Bank. The floating provision can
only be utilized with the approval of Board and Reserve Bank of India, in case of contingencies which do not arise in the normal course
of business and are exceptional and non-recurring in nature and for making specific provision for impaired loans as per the requirement
of the extant Reserve Bank of India guidelines or any regulatory guidance/instructions. The floating provision is netted-off from advances.
Under Japanese accounting principles,
provision for loan losses in banks is established based on self-assessment and the historical loss ratio and outstanding balance of each
asset category. Alternatively, it is also permitted to be calculated based on the difference between the discounted future cash flows
using the original effective interest rate and the outstanding balance. The regulatory agency does not prescribe specific rates to be
used for calculation of provisions in banks.
Under Indian GAAP, the swap contracts
entered to hedge on-balance sheet assets and liabilities are structured in such a way that they bear an opposite and offsetting impact
with the underlying on-balance sheet items. The impact of such derivative instruments is correlated with the movement of underlying assets
and liabilities and accounted pursuant to the principles of hedge accounting. The Bank identifies the hedged item (asset or liability)
at the inception of the transaction itself. Hedge effectiveness is ascertained at the time of the inception of the hedge and periodically
thereafter.. Based on Reserve Bank of India circular issued on June 26, 2019, the accounting of hedge relationships established after
June 26, 2019 is in accordance with the Guidance note on Accounting for Derivative Contracts issued by ICAI. . The swaps under hedge
relationships established prior to that date are accounted for on an accrual basis and are not marked to market unless their underlying
transaction is marked-to-market. Gains or losses arising from hedge ineffectiveness, if any, are recognized in the profit and loss Account.
Under Japanese accounting principles,
all derivatives are marked to market with unrealized gains and losses being deferred to the extent that the requirements for hedge accounting
are met.
Under Indian GAAP, deferred tax assets
on unabsorbed depreciation or carried forward losses are recognized only if there is virtual certainty of realization of such assets.
Under Indian GAAP, deferred taxes on
undistributed earnings of subsidiaries and affiliates are not recognized.
Under Japanese accounting principles,
deferred tax is recognized based on the schedule for reversal of temporary difference as a whole. Deferred tax liabilities are recognized
on part of undistributed profits of subsidiaries that are expected to be taxed upon payment as dividends.
Under Indian GAAP, for the acquisitions
approved by the Reserve Bank of India, the difference between the purchase consideration and the fair value of net assets acquired was
treated in accordance with the approved scheme of merger whereby the difference was adjusted from reserves.
Under Japanese accounting principles,
business combinations are principally accounted for by the purchase method. The acquisition cost (fair value of the consideration transferred
at the date of business combination) is allocated based on the fair value of the identifiable assets and identifiable liabilities, within
the assets transferred and liabilities assumed. When there is a separately transferable asset such as a legal right within the assets
transferred, this intangible asset is treated as an identifiable asset. The excess of the acquisition cost over the net of the identifiable
assets and identifiable liabilities is accounted for as goodwill.
| (12) | Property, Plant and Equipment |
Non-banking assets
acquired in satisfaction of claims are valued at the market value on a distress sale basis or value of loan, whichever is lower. Further,
the Bank creates provision on these assets as per the extant Reserve Bank of India guidelines or specific directions of the Reverse Bank
of India.
There is no accounting principle ruling
for assets acquired in satisfaction of claims under Japanese accounting principles.
| VII. | TRENDS IN FOREIGN EXCHANGE
RATES |
The information required under this
subsection is omitted because the foreign exchange rate between the Indian rupee, which is the currency in which the financial statements
of the Bank are presented, and the Japanese yen, has been published in two or more daily newspapers reporting general affairs in Japan
for the referenced periods.
| VIII. | REFERENCE INFORMATION OF FILING
COMPANY |
The documents filed during the period
from the commencement date of the relevant business year through the filing date of this Semi-Annual Report, and the filing dates thereof,
are as follows:
| 1. | Annual Securities Report
and the attachments thereto
pertaining to fiscal 2022 filed on September 28, 2022 |
| PART II. | INFORMATION
ON GUARANTY COMPANY OF FILING COMPANY, ETC. |
| I. | INFORMATION ON GUARANTY COMPANY |
Not applicable.
| II. | INFORMATION ON COMPANIES OTHER
THAN GUARANTY COMPANY |
Not applicable.
| III. | INFORMATION ON BUSINESS INDICES,
ETC. |
Not applicable.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorised.
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For ICICI
Bank Limited |
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Date: |
December
27, 2022 |
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By: |
/s/ Vivek
Ranjan |
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Name: |
Vivek Ranjan |
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Title: |
Chief Manager |
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