ICICI Group: Strategy &

Performance

CLSA Conference

November 19, 2013

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Certain statements in these slides are forward-looking statements.

These statements are based on management's current expectations and

are subject to uncertainty and changes in circumstances. Actual results

may differ materially from those included in these statements due to a

variety of factors. More information about these factors is contained in

ICICI Bank's filings with the US Securities and Exchange Commission.

All financial and other information in these slides, other than financial

and other information for specific subsidiaries where specifically

mentioned, is on an unconsolidated basis for ICICI Bank Limited only

unless specifically stated to be on a consolidated basis for ICICI Bank

Limited and its subsidiaries. Please also refer to the statement of

unconsolidated, consolidated and segmental results required by Indian

regulations that has, along with these slides, been filed with the stock

exchanges in India where ICICI Bank’s equity shares are listed and with

the New York Stock Exchange and the US Securities and Exchange

Commission, and is available on our website www.icicibank.com

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Agenda

Objectives and performance

Our approach

Going forward

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Healthy capital

position

Robust funding

profile

Building granular &

stable income

streams

Efficiency of

operations

Sustainable improvement in shareholder returns Our

objective

Profitability

improvement

Balance sheet

strength

Navigating volatile operating environment and markets

Including profits for H1-2014, Basel III tier

1 ratio at over 12% at September 30,

2013

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Strong capital position Capital

Among the best capitalised large Indian banks

Sep 30, 2013

Tie

r I

CA

R

16.5% 11.3%

Capital

Building a low cost and granular base

Retail deposits CASA deposits

Funding

Increasing proportion of CASA and retail deposits

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Healthy mix and calibrated growth

Retail segment expected to be key growth driver

going forward

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Lending

Mar 2011 Mar 2012 Mar 2013 Sep 2013

2% 1% 1% 2%

37% 37%

36% 34%

28%

29%

33%

33%25%

27%

25%

26%

7%

6%

5%

5%

Unsecured retail Secured retail Domestic corporate Overseas branches SME

Bond/loan repayments covered

by asset maturities; no

refinancing risk

FY2011 FY2012 FY2013 Q1-2014 Q2-2014

0.88%

1.23%

1.34%

1.60%

1.80%

Improvement in funding base

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Sustained improvement across businesses Granular

income

Domestic NIM

International NIM

Driven by profit and

margin focus across

domestic and international

businesses

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Substantial increase in overall NIMs Granular

income

~65 bps improvement in overall NIM since FY2011

Overall NIM

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Granular

income

Steady fee streams Granular

income

Forex & derivative

• Offsetting decline in corporate lending linked fees

• Improvement in overall fee growth to 17% in Q2-

2014

Commercial banking

Retail fees

Focus on building granular

and stable revenues

• Diversified financial services

franchise yielding returns

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Regular and increasing dividend income Granular

income

FY2010 FY2013 FY2012

Contributing to increase in non-interest income

• Sustaining best in class

cost-income ratios

• Despite significant scale

up in infrastructure

FY2011 FY2012 FY2013 H1-2014

42%

43%

40%

38%

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Driving efficiency on larger network and business Operating

efficiency

Cost-income %

Focus on cost efficiency to continue

Near doubling of

consolidated RoE since

FY2009

Over 70 bps improvement

over FY2009

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Consistent delivery against stated objectives Return

profile

Standalone RoA

<1.0%

FY2009 1.66%

FY2013

1.72%

H1-2014

Consolidated RoE

<8.0%

FY2009

14.7%

FY2013 15.1%

H1-2014

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Agenda

Objectives and performance

Our approach

Going forward

• Moderation in credit and deposit growth

• Increase in NPLs and restructured loans:

stress in SME and mid-corporate segments

• Continued moderation in GDP growth to <5%

• Sustained inflationary pressures and high

interest rates

• Volatility in exchange rate: policy measures

impacting markets

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Impact of weak economy on banking sector Operating

environment

Economic

conditions

Banking

sector

However, retail trends remain healthy

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Return

on

equity

Across business lines

Balanced view given operating environment Our

approach

Continued scale up

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Growth

in fee

income

The Bank continues to scale up its retail business

and invest in strengthening the franchise and

distribution infrastructure

Sustained

growth in

granular

deposits

Pickup in

portfolio

growth

Healthy

asset

quality

trends

Retail

business

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Focus on strengthening

Retail

deposit

franchise

Sep 2012 Sep 2013

Savings deposits

Retail deposits

Sep 2012 Sep 2013

Driven by continued investments in physical and

technological infrastructure

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Significant scale up in physical presence

•Network of 3,507 at Sep 2013;

largest in private sector banks

• Supplemented by >11,000

ATMs

•Largest rural branch network

among private sector banks

• ~75% of branch additions

since March 2012 in rural and

semi-urban areas

Branch network

Investment

in

infrastructure

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Mar-10 Mar-11 Mar-12 Mar-13 Sep-13

1,707

2,529

2,752

3,100

3,507

Metro Urban Semi Urban Rural

Efficiency & differentiated customer proposition

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Leveraging social

networking

platforms

Advanced mobile

banking platform

24x7 electronic

branch

“MySavings

Rewards” program

Enhanced ATM

functionality

“Money2India

Mobile App” for

NRIs

Technology

Supporting

customer

service & cost

efficiency

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Secured lending driving 20% portfolio growth Retail

lending

Sep 2012 Sep 2013

Home loans

Auto loans

Sep 2012 Sep 2013

• Along with continued focus on risks:

• Calibrated approach to CV lending

• Unsecured portfolio size continues to remain low

Healthy growth in retail fees

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Healthy trends driving overall fee growth Retail

fees

Current share of fees

Driven by liability, third party distribution and asset

linked fees

~55%

~45%

Retail Non-retail

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Domestic

corporate (33%

of total loans)

Description of

the contents

SME (<5% of

total loans)

Cautious approach

Domestic

corporate &

SME

• Impact of economic

slowdown on

growth

• Weak corporate

profitability

• Continued

challenges in

current environment

Trends

• Moderation in

growth with focus

on working capital

• Continued focus on

credit selection

• Close monitoring

Approach

• Maintain low share

of SME in the near

term

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•Growth calibrated to global funding

markets; continued focus on margins

•Wholesale borrowing repayments

covered by asset maturities

Branches

Lending primarily

to Indian

corporates

•Consolidation of balance sheet

•Continued focus on capital

rationalisation: USD 100 mn from UK

& CAD 75 mn from Canada received

Subsidiaries

•Regulatory

expectations

impacting

business model

•High capital levels

Focus on profitability and returns International

business

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•Life insurance: sustained profitability

resulting in healthy returns on

invested capital and dividend payouts

•General insurance: significant

improvement in profitability

Insurance

•Focus on maintaining market position

•Business performance linked to

market conditions; however,

franchises remain profitable

Asset

management &

broking

Healthy trends Subsidiaries

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Agenda

Objectives and performance

Our approach

Going forward

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Across business lines

Return

on

equity

Focus on balanced approach to continue Way

ahead

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• Higher increase in full year margins & fee

growth

• Continue to strengthen funding profile

• Improvement in cost-income ratio

• Strong profitability in insurance businesses

• Improving returns in banking subsidiaries

• Diversified portfolio

• Selective underwriting & close monitoring

• Strong operating performance to absorb

any higher credit losses

• Domestic loan growth targeted at 2%-3%

higher than system, driven by retail

• Continued focus on secured retail loan

products; leveraging increased presence

to improve market share

• Cautious approach in corporate & SME

• Focus on growth in insurance businesses

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Profitability

Growth

Risk

management

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Thank you