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Agenda
ICICI Bank today
Retail banking
Corporate banking & structured finance
Merger process
Financial performance
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Indias largest
private sector bank
and one stop
financial solutionsprovider with a
diversified and de-
risked business
model
ICICI Bank today Large capital base
Vast talent pool
Low operating costs
Technology focus
Strong corporaterelationships
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ICICI Bank today (contd.) Diversified portfolio
Rs. 931.50 billion Rs. 1,041.10 billion
March 2001- Proforma merged March 2002- Merged
3%12%
4%
12%
36%
33% Project finance
Corporate finance
Retail finance
Reserves & cash
Investments
Other assets
23%
23%
8%
7%5%
34%
the asset composition change on account of statutory
requirements and increase in retail assets is contributing to de-
risking the portfolio
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Online Products
e-banking in ICICI
ICICI Markets
online FX, Debt, SME
Portal
Corporate Infinityonline transfer/
settlement system
Bill JunctionUtility bill payments
Business Multiplier
web interfaceICICI Direct and ICICI
Select
Pay Sealelectronic payment
system
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ICICI Bank today (contd.)
ICICI Bank is wellpositioned to redefine
the banking model by
focussing on the
untapped potential in
the profitable retail
business segments and
leveraging its superior
delivery capabilities and
lower operating costs in
the under-served
corporate banking
business
Retail banking
Corporate banking
Structured finance
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ContentsICICI Bank today
Retail banking
Corporate banking & structured finance
Merger process
Financial performance
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130.00
180.00
230.00170.00
130.00
220.00
0
100
200
300
400
500
2000 2001 2002
Mortgages Other retail loans
Size
CAGR 32%
Retail loan disbursements
ICICI estimates
Despite the fast growth, the Indian retail market continues to be
under-penetrated in comparison to its peers
260.00
(Rs
.inbillion)
350.00
450.00
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Household segment migration
1996 1999 2002
Rich (> Rs. 0.5 m n p.a.) M ass affluent (Rs. 0.3-0.5 m n p.a.)
Mass (Rs. 0.1-0.3 mn p.a.)
2.1
6.8
Source: 1996, 1999 data is from NCAER study for top 24 cities,
2002 data is estimated by ICICI Bank
~CAGR 48%
22.9No. of households
(million)
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ICICI Banks strategy to capture retail
potentialStrong corporaterelationships
Brand
Technology
Operational excellence
Achieving leadership inretail financial services
the core of this strategy is
our relentless focus on the
customer and cross-selling of
products
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Catalyzing cross-sell
Internet Banking Call Centers 500 Outlets 1005 ATMs
Bonds Life insurance Health insuranceFixed deposits
Consumer loans Auto & home loans Credit & debit cardsPower Pay
Customized cross-sellingby leveraging relationships, brand and
technology
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Operational excellence
These measures have ensured that we have followed a cautious
approach while maintaining high growth rates and profitability in
all segments
Prudent credit policies
Adequate fraud control Rigorous collection mechanism
Bolstered by acompany wide 6
sigma initiative
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2 8 . 5 28 . 6 1
5 1 . 3 4
2 2 . 1 2
-
1020
30
40
50
60
7080
2000 2001 2002
Hom e loans Other retai l loans
Our growth in retail (contd.)
Home & others
(
Rs.
inbillion)
Home loans grew at
230% in FY 2002
Amongst the leading
providers of home loans
in India
Other retail loans grewat 130% in FY 20025.15
30.73
79.86Outstanding loans
Bank accounts Credit cards
Growth rate
167%
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Our growth in retail (contd.)
0 .1
1 .2
0 .60 .3
0 .6
3 .2
5 .0
-
1
2
3
4
5
1999 2000 2001 2002
Inte rnet banking custo mers
B ank custo mer acco unts
(million)
Bank accounts grew at
53% in FY 2002
Internet customer
accounts grew at 100%
in FY 2002 Comprised 25% of bank
accounts
Among top twelve
internet banks in the
world
Home & others Bank accounts Credit cards
5.0
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Our growth in retail (contd.)
Number of credit cards
0.3
0.6
-
0.3
0.5
0.8
2000 2001 2002
(million)
Home & others Bank accounts Credit cards
Growth rate
100%
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In summary
Mortgages
Other retail loans
Credit cards
Nascent Developing Matured Commoditized
We entered the retail market at the beginning of the growth
stage and are now harnessing the untapped potential in all the
profitable business segments
ICICI Bank analysis - For mortgages & other retail loans: Nascent 30%of GDP. For credit cards: Nascent 50% penetration
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ContentsICICI Bank today
Retail banking
Corporate banking & structured finance
Merger process
Financial performance
C b ki d d
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Strategy
Maximize value of client relationships
Leverage technology to enhance delivery capabilities
Proactive portfolio management
For efficient capital utilisation and lower balance sheet
exposure
Corporate banking and structured
finance
Corporate Banking Structured Finance
The aim is to provide state-of-the-art, low cost and efficient
banking services, with a focus on increasing fee-basedincome
C b ki d d
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Feemarketsize
Grow market share in fee-based products and services
Corporate banking and structured
finance
51%
14%
13%
4%
18%
Corporate
Retail
Government
Forex
Overseas
Marketsize: Rs. 111.10 billion
Corporate Banking Structured Finance
C t b ki d t t d
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Corporate Solutions Group
Reach the entire universe of current and potential clients(over 1300) and offer tailor-made solutions
Government Solutions Group
Develop comprehensive banking relationships with all
central, state and local governmental entities
Small & Medium Enterprises Group
Develop comprehensive banking relationships with small &
medium sized enterprises leveraging corporate linkages
Focus on agri-lending to help in compliance with priority
sector norms
Strategy
Corporate banking and structured
finance
Corporate Banking Structured Finance
C t b ki d t t d
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Leverage expertise to facilitate loan origination and ensuresell down leading to
Reduced concentration of risk
Optimal risk-return trade-off
Aggressively pursue cross-sell opportunities for all ICICI
group products
Corporate banking and structured
finance
Corporate Banking Structured Finance
Significant opportunities for funding well-structured projects
with in-built risk mitigation
Strategy
C t b ki d t t d
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Corporate Banking Structured Finance
Infrastructure Projects Group
Create a balanced portfolio across sub-sectors
Telecom, Power, Transportation, Urban Infrastructure
Focus on non-fund based activities
Manufacturing Projects Group Consolidation and modernization in core sectors
Cement, Steel, Textiles, Chemicals
Structured opportunities in certain emerging sectors
Oil & gas, Mining, Retail, Agri infrastructure
Corporate banking and structured
finance
Strategy
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ContentsICICI Bank today
Retail banking
Corporate banking & structured finance
Merger process
Financial performance
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Having complied with all regulatory requirements, the merged entity, with an
established brand and strong technology focus, is now well placed to harness the
vast retail potential and consolidate its position in corporate banking to emerge
as the leading financial solutions provider in India
In conclusion
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Present Scenario
Indian retail banking has been showing
phenomenal growthIn 2004-05, 42% of credit growth came from retail
Over the last 5 years CAGR has been over 35%
Retail credit levelcrossed Rs.189K Crore in 2004-05Market has transformed into a buyers market
from a sellersmarket
Comprises of multiple products, channels of
distribution and multiple customer groups
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Industrys response to the change
Anywhere,Anytime Banking
Improved processes/Bundled product offerings
Faster service/Reduced TATs
Customer specific products/offerings on a regularbasis
Bank customer has replaced Branch customer
Focus on understanding customer needs/
preferencesSegmentation/Differentiation of customers
Customer driven strategies
Building relationships
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The accelerated retail growth has been on a historicallylow base
Penetration continues to be significantly low compared to
global bench marks
Share of retail credit expected to grow from 22% to 36%
Retail credit expected to grow to Rs.575,000 crs by 2010at an annual growth rate of 25%
Source: Cygnus industry insight
Future Of Retail Banking
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Strategies for Future
Reaching to masses : Need to customize
Customer segmentation/differentiation
Data mining/CRM based campaigns
Products per customer/loyalty
Promoting low risk retail lending products
Offer an array of products and financial advisory.