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India’s largest private sector bank and one stop financial solutions provider with a diversified and de-risked business model
India’s largest private sector bank and one stop financial solutions provider with a diversified and de-risked business model
ICICI Bank today
Large capital base
Vast talent pool
Low operating costs
Technology focus
Strong corporate relationships
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ICICI Bank today (contd.) ICICI Bank is well
positioned 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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Contents
ICICI Bank today
Retail banking
Corporate banking & structured finance
Merger process
Financial performance
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ICICI Bank’s strategy to capture retail potential
Strong corporate relationships
Brand
Technology
Operational excellence
Achieving leadership in
retail 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 insurance
Fixed deposits
Consumer loans
Auto & home loans
Credit & debit cards
Power Pay
Customized cross-selling by 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 a company wide 6 sigma initiative
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Fee m
ark
et
siz
eGrow market share in fee-based products
and services
Corporate banking and structured finance
51%
14%
13%
4%
18%
Corporate
Retail
Government
Forex
Overseasbranches
Market size: Rs. 111.10 billion
Corporate Banking Structured Finance
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Corporate Solutions GroupReach the entire universe of current and
potential clients (over 1300) and offer tailor-made solutions
Government Solutions GroupDevelop comprehensive banking
relationships with all central, state and local governmental entities
Small & Medium Enterprises GroupDevelop comprehensive banking
relationships with small & medium sized enterprises leveraging corporate linkages
Focus on agri-lending to help in compliance with priority sector norms
Str
ate
gy
Corporate banking and structured finance
Corporate Banking Structured Finance
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Leverage expertise to facilitate loan origination and ensure sell down leading toReduced 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
Str
ate
gy
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Corporate Banking Structured Finance
Infrastructure Projects GroupCreate a balanced portfolio across sub-
sectors Telecom, Power, Transportation, Urban
InfrastructureFocus on non-fund based activities
Manufacturing Projects GroupConsolidation 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
Str
ate
gy
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Obtaining regulatory approvals within a short time-period of 6 months
Compliance with SLR & CRR requirements
Compliance with directed lending norms Stipulated at 50% on residual net bank credit
Regulatory Fair valuation of loansMerger accounting
Ch
allen
ges
Merger process
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All regulatory approvals obtained
Full compliance with SLR & CRR requirementsRaised Rs. 180.00 billion in 5 months
Without distortion of yield curve With minimal asset-liability mismatch
Directed lending norms Home loans of less than Rs. 1.0 million
qualify for priority sector lendingInnovative approach to agri-financing to
meet priority sector objectives while mitigating credit risks
Com
plian
ce s
tatu
s
Merger process
Regulatory Fair valuation of loansMerger accounting
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Fair valuation of loans done by Deloitte Haskins & SellsComprehensive review of credit rating
methodologyRobust approach to evaluation
Examination of loan files and review of collateral
Analysis of projections and restructuring schemes (if any) to estimate future cashflows
Discounted value of cashflows on the loan calculated to estimate the fair value
Provisioning requirement ascertained by above process extrapolated to the balance portfolio
Equity & related investment portfolio marked to market
Valu
ati
on
Merger process
Regulatory Fair valuation of loansMerger accounting
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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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Thank You