Performance Review Q1:FY 200102

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Performance ReviewQ1FY 2001-02

• July 27, 2001

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Contents

• Financial Performance
• Business Overview
• Operational Performance
• Asset Composition and Quality
• Capital and Shareholders

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Summary Performance (Indian GAAP)
Rs. in billion
(1) After adding back accelerated provisions of
Rs. 8.13 bn
21 increase in profit to equity holders
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Profit and Loss Statement
Rs. in billion
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Profit and Loss Statement
Rs. in billion
(1) Includes Rs.0.32 bn on account of provision
for restructured assets
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Profit and Loss Statement
Rs. in billion

(1) Provision for tax made as per the new
accounting standard on deferred taxation
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Balance Sheet
Rs. in billion
(1) Include Rs.7.20 bn of revaluation reserves
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Balance Sheet
Rs. in billion
(1) Include Rs.7.20 bn of revaluation reserves..
No deferred tax liability relating to earlier
years has been created. If such liability was
created, the reserves would have been lower by
Rs. 3.39 bn.
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Summary Ratios (Indian GAAP)...
(1) Annualised (2) After adding back accelerated
provisions and write-offs of Rs. 8.13 billion (3)
Net income from operations includes net
fund-based income, fees commissions and
dividend income
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Consolidated profits Indian GAAP
Rs. in billion
25 Growth in Consolidated Profit
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Consolidated profit US GAAP
Rs. in billion
(1) Net income, including the cumulative effect
of accounting change of Rs. 1.27 billion, is Rs.
3.77 billion in Q1-FY02.
21 Growth in Income before Tax
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Consolidated US GAAP Accounts

• The balance sheet does not include the deferred
  tax asset arising out of 'other than temporary'
  diminution on investments charged to the income
  statement in prior years. Inclusion of such asset
  could have a positive impact of upto Rs. 0.96
  billion on stockholders' equity at March 31,
  2001. However, the exact amount will be
  ascertained on evaluation of likely realization
  of the deferred tax asset by the management. This
  change will be incorporated in the Form 20-F, as
  a correction to the financial statements for
  financial year 2001, to be filed with the U.S. SEC

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Reconciliation of net income - US GAAP
Rs. in billion
(1) Excludes cumulative effect of accounting
change
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Contents

• Financial Performance
• Business Overview
• Operational Performance
• Asset Composition and Quality
• Capital and Shareholders

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Maintaining business leadership profitability
has been the thrust of our strategies...
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with a sharper focus on the client

• Client Relationship
• Ensuring that clients derive maximum advantage
  from market opportunities
• Position ICICI as a solution provider for every
  financial need

Client Relationship

• Credit Operations
• Evaluate and mitigate key risks, minimize
  residual risk on our business operations and
  review exposures
• Seamless delivery of credit
• Enhancing the credit quality

Client
Credit Operations
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Customer Segmentation
Large Corporates
Differentiate from competition based on
innovation and speed
Mid cap companies
Partner growth with a complete product suite
PSUs and Govt Institutions
Focus on high quality corporate finance,
structured finance and transaction services
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Extensive cross-selling to large clients
Cross-sell profile - Large Diversified
Conglomerate

WC Banking
Term Loans
Non-fund based
Cash Management
Corporate
Escrow
Small Business Finance
Dividend Warrants
Trade Finance
CP
MIBOR Linked Papers
Forex
Debentures
Treasury
Public issuance
Debt Placements
MA Activity
I- Banking
ATM
Power Pay
Credit Cards
Personal Banking
Retail Banking
Consumer Loans
Auto Loans
Home Loans
PFS
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has been rolled-out to mid-cap companies also
Cross-sell profile - Automotive Company

WC Banking
Term Loans
Non-fund based
Cash Management
Corporate
Escrow
Small Business Finance
Trade Finance
Dividend Warrants
CP
MIBOR Linked Papers
Forex
Debentures
Treasury
Public issuance
Debt Placements
MA Activity
I- Banking
ATM
Power Pay
Credit Cards
Personal Banking
Retail Banking
Consumer Loans
Auto Loans
Home Loans
PFS
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Focus on the Government segment
Dedicated Government Institutional group (GIG)

• Government Departments
• Central and State level institutions
• Municipal corporations
• Public Sector Companies
• Quasi-Government Bodies

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with significant cross-selling
PSU Divestment Advisory Mandates
Cash Management, Payroll and Current Accounts
Utility Bill payment
Resource raising
Home finance for State Housing Board projects
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Maintaining leadership in infrastructure
finance...
Telecom
Transportation and Urban Infrastructure
Energy, Oil Gas

• Investment of Rs. 1,500 bn by 2007 subject to a
  stable policy framework
• Mobile subscribers to increase to 15 mn by 2007
  from 4 mn currently
• Fixed lines to increase to 70 mn by 2007 from 32
  lines mn currently (largely by BSNL / MTNL)
• 2/3 more long distance operators expected
• 2/3 more international gateways expected

• As member of sub-group under the Group on Telecom
  and IT Convergence, ICICI has been working on
  Communication Convergence Bill 2000
• Financial closure for a state cellular operator
  with ICICI as lead arranger
• Earnest money bank guarantees for 4th cellular
  license bidding
• Performance guarantees for National Long Distance
  operator

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Maintaining leadership in infrastructure
finance...
Telecom
Transportation and Urban Infrastructure
Energy, Oil Gas

• Outstanding issues in concessions bidding
  process continue to delay investment proposals of
  over Rs. 40 billion in transportation sector
• Breakthroughs in urban sector despite slow pace
  of reforms

• Assistance to urban local bodies for water supply
  projects
• Syndicate leader for a chemical port terminal
  project
• Underwrote senior debt for expressway-cum-area
  development project

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Maintaining leadership in infrastructure
finance...
Telecom
Transportation and Urban Infrastructure
Energy, Oil Gas

• Systemic issues continued to dissuade private
  investments, particularly in the power sector

• Working closely with the Ministry of Power to
  resolve systematic issues through policy
  formulation
• Refinancing for the first operating IPP in the
  hydro sector

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Growth in Structured Finance
Range of structured transactions
Purchase of deferred sales tax receivables of
corporate entities
Revolving line for securitisation of receivables
Corporate Loan securitisation Active secondary
market for the paper
Financing public utilities with escrow of charges
and sub-ordination of loan obligations
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Retail Finance
Home Loans
Auto Finance
ICICI Web Trade

• 58 growth in approvals
• Presence in 61 cities
• Six Sigma initiative for process streamlining

• Car loans cross 10 of sales of all cars in India
  in Q1-2002
• Market share of 10 in two-wheeler finance
• Presence in 72 cities

• Indias Leading online share trading site with
  63 market share
• Trading for institutions launched in Q1
• First company in Asia to receive KPMG
  Web Seal

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Contents

• Financial Performance
• Business Overview
• Operational Performance
• Asset Composition and Quality
• Capital and Shareholders

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Approvals Thrust on corporate finance retail...
Q1-FY01
Q1- FY02
Mfg. Projects 3
Mfg. Projects 11
Retail 4
Infra 3
Oil Gas 6
Retail 10
Infra 28
Corporate Finance 51
Corporate Finance 84
Rs. 166.46 billion
Rs. 131.52 billion
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Disbursements Continued growth and
diversification......
Q1-FY01
Q1-FY02
Infra 7
Mfg. Projects 9
Retail 7
Retail 13
Mfg. Projects 9
Infra 9
Corporate Finance 77
Corporate Finance 69
Rs. 82.40 billion
Rs. 87.41 billion
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Improving quality of business...
Approvals

• Approvals to clients rated A- above up from
  87 to 93
• Disbursements to clients rated A- above up
  from 89 to 92

87
93
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Disbursements
89
92
11
8
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Diversified and De-risked Asset Portfolio...
March 31, 1997
Corp. Finance 9
Infrastructure 9
Oil Gas 9
June 30, 2001
Corp. Finance 41
Infrastructure 13
Oil Gas 7
Mfg. Project Finance 73
Retail 4
Rs. 297.83 billion
Reduced Risk and Volatility of Earnings Stream
Mfg. Project Finance 35
Rs. 662.37 billion
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Contents

• Financial Performance
• Business Overview
• Operational Performance
• Asset Composition and Quality
• Capital and Shareholders

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Top 10 Industry-wise Exposure1
to total
Excluding retail finance
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Asset Classification
of total
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Continued focus on proactive restructuring...
Restructuring
Significant progress in restructuring of
inherently viable accounts
Satisfactory performance of accounts restructured
earlier
Close monitoring of steel cases in view of
downturn in the industry and import barriers in
the US and Europe
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Non-Performing Loans (Indian GAAP)
Rs. in billion
(1) Excludes debentures in the nature of
investments as per the RBI guidelines. (2) Net of
accelerated provisions and write-offs amounting
to Rs. 8.13 billion.
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Clear slow-down in incremental NPLs...
Rs. in billion
(1) Excludes debentures in the nature of
investments as per the RBI guidelines. (2)
Net of accelerated provisions and write-offs
amounting to Rs. 8.13 billion.
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Contents

• Financial Performance
• Business Overview
• Operational Performance
• Asset Composition and Quality
• Capital and Shareholders

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Capital Adequacy...
15.1
14.7
June 30, 2001
March 31, 2001
Tier - II capital at June 30, 2001 includes
revaluation reserve on account of revaluation of
fixed assets, as per the RBI guidelines
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Shareholding Pattern
March 31, 2001
June 30, 2001
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Thank You