Banking Industry

BANKING INDUSTRY

A banker or bank is a

financial institution whose primary activity is to act as a payment agent for customers to borrow and lend.

Banking and Finance Overview Financial Services Commercial Bank • Private banking • Investment Banks • Bank cards • Credit card machine services and networks

Investment Services

Insurance

• Asset Management

• Insurance Brokerage

• Hedge Fund Managers

• Insurance Underwriting

• Custody services

• Reinsurance

Advisory Services • Stock brokers (private client services) and discount brokers

India - Strategic Map

Stan C

Citibank

ABN HSBC Amro

Hi g h S er vi c e Q u al it y

ICICI Bank Karur Vysya

HDFC IndusInd Bank State Bank of India

Vysya

Bank of Baroda Bank of PNB Andhra Bank Co-operative Banks

Canara

Rural Banks

R ural

Region al Geographical

Urban

L o w

The India Scenario - A Comparison Only one Indian Bank in the top 100 Banks in the world

• • India's best and brightest, the SBI, is roughly one-tenth the size of the world's biggest bank - Citigroup • Six Chinese banks feature among the top 25 Asian banks while India has only two representatives - SBI and ICICI Bank. • Similarly, SBI's consolidated pre-tax profit is $1.9 billion against Citigroup's $29 billion, Bank of America's $25 billion and HSBC's $21 billion • The one area where Indian banks are able to compete with their global peers is their return on assets (RoA). Among big Indian banks, ICICI Bank, PNB, Canara Bank and HDFC Bank have a return on assets of over 1 per cent return, while SBI's return on assets is 0.89 per cent. Among Indian banks, HDFC Bank has the highest return on assets -- 1.71 per cent. • This is lower than that of Citigroup (1.97 per cent) but much better than the RoA of HSBC (1.40 per cent). Our banks are small but efficient. However, if the economy has to grow at

Major Players • Global – – – – – – – – –

JP Morgan Chase Bank of America HSBC Citigroup Deutsche Bank Goldman Sachs Morgan Stanley Merrill Lynch BNP Paribas

• Indian – – – – – – – –

SBI ICICI PNB HDFC Bank of Baroda Corporation Bank IDBI UTI

India’s Second Largest Bank

History Of ICICI

Formed- 1955 at the initiative of the world bank •Originally promoted-1994 By ICICI

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Limited

•India’s Second largest bank •In 1999 ICICI became first Indian company and bank •In 2001 ICICI acquired Madura Bank •In 2001 bank approved the merger of ICICI and two of its wholly owned retail finance

Board Of Directors

Products of a bank •Financial products •Non-Financial products

Financial Products•Banking •Insurance •Loans •Remittances •Investments •Derivatives

Non-Financial products• • • • • •

E-Governance Education Health Agri-Extension Communication Entertainment

New Product Development•Arranging for forfeiting services •Co-Acceptance •Electronic advertising of export letters of credit •EEFC Checking accounting •Arranging for non-resource financing for deferred payment exports •Special foreign currency account for overseas tour operators •Travelers cheque reimbursement

Performance Review – Year ended March 31, 2008: ICICI Bank’s profit after tax crosses US$ 1.0 billion

Highlights • Profit after tax for the quarter ended March 31, 2008 (Q42008) increased 39% to Rs. 1,150 crore (US$ 287 million) from Rs. 825 crore (US$ 206 million) for the quarter ended March 31, 2007 (Q42007). • Profit after tax for FY2008 increased 34% to Rs. 4,158 crore (US$ • Net 1.0 interest income increased 30% to Rs. 7,304 crore (US$ 1.8

billion) for FY2008 from Rs. 5,637 crore (US$ 1.4 billion) for FY2007. • Fee income increased 32% to Rs. 6,627 crore (US$ 1.7 billion) for FY2008 from Rs. 5,012 (US$ 1.2 billion) for FY2007. • Current and savings account (CASA) deposits ratio increased to • At March 31, 2008, ICICI Bank and its subsidiaries had consolidated total assets of Rs. 485,830 crore (US$ 121.1 billion

Dividend on equity sharesThe Board has recommended a dividend of 110% for FY2008 i.e. Rs. 11 per equity share (equivalent to US$ 0.55 per ADS) as compared to 100% for FY2007. The declaration and payment of dividend is subject to requisite approvals. The record/book closure dates shall be announced in due course.

SWOT Analysis Of ICICI Bank •Strengths •Weaknesses •Opportunities •Threats

STRENGTHS qBRAND NAME qMARKET SHARE

qDIVERSIFIED PORTFOLIO qWORKING HOURS qTREASURY DEPARTMENT qTECHONOLOGY

NETWORK

qSALARY ACCOUNT

WeaknessesqTRANSACTION COST qFOCUS ONLY ON HIGH END CUSTOMERS qDEFENSIVE APPROACH IN LENDING qLITTLE PRESENCE OUTSIDE INDIA qPOOR CUSTOMER CARE/SERVICE

Opportunitie sqNEW IT & ITES COMPANIES qDissatisfied Customers of Other Banks qRemittances qBusiness advising for smaller Players

ThreatsqAdvent of MNC banks qDissatisfied Customers qEver improving nationalized banks qCompetitors

Thank you

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Presented By :

ØShoma Ghosh ØKavita Singhal ØArchna Lal ØMonica ØBuddhpriya ØRitesh Mishra