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ICICI Bank Limited Performance Review – Quarter Ended December 31, 2013

January 29, 2014

Operating profit increased by 29% to Rs 4,439 crore ( US$ 718 million ) for the quarter ended December 31, 2013 (Q3-2014) from Rs 3,453 crore ( US$ 559 million ) for the quarter ended December 31, 2012 (Q3-2013) Profit before tax increased by 21% to Rs 3,744 crore ( US$ 606 million ) for Q3-2014 from Rs 3,084 crore ( US$ 499 million ) for Q3-2013 Profit after tax increased by 13% to Rs 2,532 crore ( US$ 410 million ) for Q3-2014 from Rs 2,250 crore ( US$ 364 million ) for Q3-2013, after additional tax provision of Rs 215 crore ( US$ 35 million ) for deferred tax liability on special reserve for the nine months ended December 31, 2013 (9M-2014); growth in profit after tax excluding this impact was 22% Retail advances growth at 22% year-on-year at December 31, 2013 Current and savings account (CASA) ratio maintained at 43.3% at December 31, 2013 ; year-on-year growth of 17% in CASA deposits Net interest margin improved to 3.32% in Q3-2014 compared to 3.07% in Q3-2013; domestic NIM at 3.67% Total capital adequacy of 16.81% and Tier-1 capital adequacy of 11.53% as per Reserve Bank of India’s guidelines on Basel III norms (17.94% and 12.66% including profits for nine months ended December 31, 2013 ) MUMBAI, India --(BUSINESS WIRE)-- The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Mumbai today, approved the audited accounts of the Bank for the quarter ended December 31, 2013 . Profit & loss account Operating profit increased by 29% to Rs 4,439 crore ( US$ 718 million ) for the quarter ended December 31, 2013 (Q3-2014) from Rs 3,453 crore ( US$ 559 million ) for the quarter ended December 31, 2012 (Q3-2013). Profit before tax increased by 21% to Rs 3,744 crore ( US$ 606 million ) for Q3-2014 from Rs 3,084 crore ( US$ 499 million ) for Q3-2013. Profit after tax increased by 13% to Rs 2,532 crore ( US$ 410 million ) for Q3-2014 from Rs 2,250 crore ( US$ 364 million ) for Q3-2013, after additional tax provision of Rs 215 crore ( US$ 35 million ) for deferred tax liability on Special Reserve; growth in profit after tax excluding this impact was 22%. Net interest income increased 22% to Rs 4,255 crore ( US$ 688 million ) in Q3-2014 from Rs 3,499 crore ( US$ 566 million ) in Q3-2013. Net interest margin increased by 25 basis points from 3.07% for Q3-2013 and 3.31% for Q2-2014 to 3.32% for Q3-2014. The domestic net interest margin was 3.67% and net interest margin of international branches was 1.70% for Q3-2014. Non-interest income increased by 26% to Rs 2,801 crore ( US$ 453 million ) in Q3-2014 from Rs 2,215 crore ( US$ 358 million ) in Q3-2013. Fee income increased by 13% to Rs 1,997 crore ( US$ 323 million ) in Q3-2014 from Rs 1,771 crore ( US$ 287 million ) in Q3-2013. Cost-to-income ratio was maintained sequentially at 37.0% in Q3-2014. Profit before tax increased by 24% to Rs 10,228 crore ( US$ 1.7 billion ) for the nine months ended December 31, 2013 from Rs 8,253 crore ( US$ 1.3 billion ) for the nine months ended December 31, 2012 Profit after tax increased by 19% to Rs 7,158 crore ( US$ 1.2 billion ) for 9M-2014 from Rs 6,021 crore ( US$ 974 million ) for 9M-2013, after additional tax provision of Rs 215 crore ( US$ 35 million ) for deferred tax liability on Special Reserve; growth in profit after tax excluding this impact was 22%. Operating review The Bank has continued with its strategy of pursuing profitable growth. The Bank continued to grow its retail franchise. During the quarter, the Bank added 81 branches, and 117 ATMs to its network. At December 31, 2013 , the Bank had 3,588 branches, the largest branch network among private sector banks in the country. The Bank’s ATM network increased to 11,215 ATMs at December 31, 2013 as compared to 10,040 at December 31, 2012 . Credit growth Total advances increased by 16% year-on-year to Rs 332,632 crore ( US$ 53.8 billion ) at December 31, 2013 from Rs 286,766 crore ( US$ 46.4 billion ) at December 31, 2012 . The Bank has continued to see healthy growth in its retail disbursements resulting in a year-on-year growth of 22% in the total retail portfolio at December 31, 2013 . Deposit growth The Bank has seen healthy trends in current and savings account (CASA) deposits mobilisation. During Q3-2014, savings account deposits increased by Rs 2,190 crore ( US$ 354 million ) and current account deposits increased by Rs 1,068 crore ( US$ 173 million ). At December 31, 2013 , savings account deposits were Rs 95,725 crore ( US$ 15.5 billion ) and current account deposits were Rs 41,441 crore ( US$ 6.7 billion ). The Bank’s CASA ratio was 43.3% at December 31, 2013 , at a similar level as September 30, 2013 . The average CASA ratio for Q3-2014 was at 39.1%. Capital adequacy The Bank’s capital adequacy at December 31, 2013 as per Reserve Bank of India’s guidelines on Basel III norms was 16.81% and Tier-1 capital adequacy was 11.53%, well above regulatory requirements. In line with applicable guidelines, the Basel III capital ratios reported by the Bank for at December 31, 2013 do not include the profits for the nine months ended December 31, 2013 . Including the profits for 9M-2014, the capital adequacy ratio for the Bank as per Basel III norms would have been 17.94% and the Tier I ratio would have been 12.66%. Asset quality Net non-performing assets at December 31, 2013 were Rs 3,121 crore ( US$ 505 million ) compared to Rs 2,707 crore ( US$ 438 million ) at September 30, 2013 . The net non-performing asset ratio was 0.81% at December 31, 2013 compared to 0.73% at September 30, 2013 . The Bank’s provision coverage ratio, computed in accordance with the RBI guidelines, was 70.0% at December 31, 2013 . Net loans to companies whose facilities have been restructured were Rs 8,602 crore ( US$ 1.4 billion ) at December 31, 2013 compared to Rs 6,826 crore ( US$ 1.1 billion ) at September 30, 2013 . Consolidated results The consolidated return on equity on an annualised basis increased from 14.6% in 9M-2013 to 15.1% in 9M-2014. The consolidated profit after tax increased by 17% from Rs 7,112 crore ( US$ 1.2 billion ) for 9M-2013 to Rs 8,317 crore ( US$ 1.3 billion ) for 9M-2014. Consolidated profit after tax increased 9% to Rs 2,872 crore ( US$ 465 million ) for Q3-2014 from Rs 2,645 crore ( US$ 428 million ) for Q3-2013. The consolidated return on equity on an annualised basis was 15.0% for Q3-2014. The growth in consolidated profit after tax excluding the impact of deferred tax liability on Special Reserve for the Bank would have been 17% and 20% for Q3-2014 and 9M-2014 respectively. Insurance subsidiaries ICICI Life’s profit after tax for Q3-2014 was Rs 428 crore ( US$ 69 million ) compared to Rs 398 crore ( US$ 64 million ) for Q3-2013. ICICI Life’s new business annualised premium equivalent (APE) was Rs 868 crore ( US$ 140 million ) in Q3-2014 compared to Rs 904 crore ( US$ 146 million ) in Q3-2013. The assets under management at December 31, 2013 were Rs 77,393 crore (US$ 12.5 1 billion). ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the private sector with overall market share of 9.6% in April- November 2013 . The gross premium income of ICICI General increased by 3% to Rs 1,738 crore ( US$ 281 million ) in Q3-2014 from Rs 1,687 crore ( US$ 273 million ) in Q3-2013. ICICI General’s profit after tax in Q3-2014 was Rs 76 crore ( US$ 12 million ) as compared to Rs 95 crore ( US$ 15 million ) in Q3-2013. ____________ 1 Corrected Summary Profit and Loss Statement (as per unconsolidated Indian GAAP accounts) Rs crore FY2013 Q3-2013 9M-2013 Q2-2014 Q3-2014 9M-2014 Net interest income 13,866 3,499 10,063 4,044 4,255 12,119 Non-interest income 8,346 2,215 6,138 2,166 2,801 7,452 - Fee income 6,901 1,771 5,126 1,994 1,997 5,784 - Lease and other income 950 193 609 251 357 897 - Treasury income 495 251 403 (79 ) 447 771 Less: Operating expense 9,013 2,261 6,606 2,322 2,617 7,430 Operating profit 13,199 3,453 9,595 3,888 4,439 12,141 Less: Provisions 1,803 369 1,342 625 695 1,913 Profit before tax 11,396 3,084 8,253 3,263 3,744 10,228 Less: Tax 3,071 834 2,232 911 1,212 3,070 Profit after tax 8,325 2,250 6,021 2,352 2,532 7,158 1. The Bank creates Special Reserve through appropriation of profits, in order to avail tax deduction as per Section 36(1)(viii) of the Income Tax Act, 1961. The Reserve Bank of India , vide its circular dated December 20, 2013 , has advised banks to create a deferred tax liability (DTL) on the amount outstanding in Special Reserve, as a matter of prudence. In accordance with these RBI guidelines, during Q3-2014 the Bank has created a DTL of Rs 1,419 crore on Special Reserve outstanding at March 31, 2013 , by reducing the reserves. Further, DTL of Rs 215 crore on the estimated Special Reserve for 9M-2014 has been created in the quarter ended December 31, 2013 . Accordingly, the tax expense for Q3-2014 and 9M-2014 was higher by Rs 215 crore . Excluding this impact, the growth in the Bank’s profit after tax for the three months as well as nine months ended December 31, 2013 over the respective corresponding periods of the previous year would have been 22%. 2. Prior period figures have been regrouped/re-arranged where necessary. Summary Balance Sheet Rs crore At December 31, 2012 March 31, 2013 September 30, 2013 December 31, 2013 (Audited) (Audited) (Audited) (Audited) Capital and Liabilities Capital 1,153 1,154 1,154 1,155 Employee stock options outstanding 4 4 6 6 Reserves and surplus 1 65,961 65,548 71,943 72,896 Deposits 286,418 292,614 309,046 316,970 Borrowings (includes subordinated debt) 2 147,149 145,341 145,356 150,940 Other liabilities 26,654 32,134 36,003 32,159 Total Capital and Liabilities 527,339 536,795 563,508 574,126 Assets Cash and balances with Reserve Bank of India 21,778 19,053 18,751 19,157 Balances with banks and money at call and short notice 19,351 22,365 14,830 13,369 Investments 166,842 171,394 168,829 171,985 Advances 286,766 290,249 317,786 332,632 Fixed assets 4,619 4,647 4,611 4,629 Other assets 27,983 29,087 38,701 32,354 Total Assets 527,339 536,795 563,508 574,126 1. The Bank creates Special Reserve through appropriation of profits, in order to avail tax deduction as per Section 36(1)(viii) of the Income Tax Act, 1961. The Reserve Bank of India , vide its circular dated December 20, 2013 , has advised banks to create a deferred tax liability (DTL) on the amount outstanding in Special Reserve, as a matter of prudence. In accordance with these RBI guidelines, during Q3-2014, the Bank has created a DTL of Rs 1,419 crore on Special Reserve outstanding at March 31, 2013 , by reducing the reserves. 2. Borrowings include preference share capital of Rs 350 crore . 3. Prior period figures have been regrouped/re-arranged where necessary. All financial and other information in this press release, 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 audited unconsolidated, consolidated and segmental results required by Indian regulations that has, along with this release, 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 Exchange Commission , and is available on our website www.icicibank.com . Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', ‘expected to’, etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the actual growth in demand for banking and other financial products and services in the countries that we operate or where a material number of our customers reside, our ability to successfully implement our strategy, including our use of the Internet and other technology, our rural expansion, our exploration of merger and acquisition opportunities, our ability to integrate recent or future mergers or acquisitions into our operations and manage the risks associated with such acquisitions to achieve our strategic and financial objectives, our ability to manage the increased complexity of the risks we face following our rapid international growth, future levels of impaired loans, our growth and expansion in domestic and overseas markets, the adequacy of our allowance for credit and investment losses, technological changes, investment income, our ability to market new products, cash flow projections, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to implement our dividend policy, the impact of changes in banking regulations and other regulatory changes in India and other jurisdictions on us, the bond and loan market conditions and availability of liquidity amongst the investor community in these markets, the nature or level of credit spreads, interest spreads from time to time, including the possibility of increasing credit spreads or interest rates, our ability to roll over our short-term funding sources and our exposure to credit, market and liquidity risks as well as other risks that are detailed in the reports filed by us with the United States Securities and Exchange Commission . ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. This release does not constitute an offer of securities. For further press queries please call Sujit Ganguli at 91-22-2653 8525 or email ganguli.sujit@icicibank.com . For investor queries please call Rakesh Mookim at 91-22-2653 6114 or email ir@icicibank.com . 1 crore = 10.0 million US$ amounts represent convenience translations at US$1 = Rs 61.81 ICICI Bank Limited Registered Office: Landmark, Race Course Circle , Vadodara - 390 007. Corporate Office: ICICI Bank Towers , Bandra-Kurla Complex , Bandra (East), Mumbai - 400 051. Web site: http://www.icicibank.com UNCONSOLIDATED FINANCIAL RESULTS (Rs in crore) Sr. no. Particulars Three months ended Nine months ended Year ended December 31 , 2013 September 30 , 2013 December 31 , 2012 December 31 , 2013 December 31 , 2012 March 31 , 2013 (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) 1. Interest earned (a)+(b)+(c)+(d) 11,454.95 10,813.27 10,138.29 32,688.90 29,710.27 40,075.60 a) Interest/discount on advances/bills 8,223.83 7,736.87 7,065.80 23,156.34 20,370.42 27,341.11 b) Income on investments 2,922.17 2,839.08 2,742.42 8,645.88 8,188.87 11,009.27 c) Interest on balances with Reserve Bank of India and other inter-bank funds 33.62 47.03 136.25 138.36 408.69 542.98 d) Others 275.33 190.29 193.82 748.32 742.29 1,182.24 2. Other income 2,801.01 2,166.48 2,214.62 7,451.78 6,137.51 8,345.70 3. TOTAL INCOME (1)+(2) 14,255.96 12,979.75 12,352.91 40,140.68 35,847.78 48,421.30 4. Interest expended 7,199.89 6,769.76 6,639.27 20,569.86 19,647.08 26,209.19 5. Operating expenses (e)+(f) 2,617.03 2,322.11 2,261.16 7,429.74 6,605.59 9,012.88 e) Employee cost 996.87 871.55 940.64 2,957.85 2,893.55 3,893.29 f) Other operating expenses 1,620.16 1,450.56 1,320.52 4,471.89 3,712.04 5,119.59 6. TOTAL EXPENDITURE (4)+(5) (excluding provisions and contingencies) 9,816.92 9,091.87 8,900.43 27,999.60 26,252.67 35,222.07 7. OPERATING PROFIT (3)–(6) (Profit before provisions and contingencies) 4,439.04 3,887.88 3,452.48 12,141.08 9,595.11 13,199.23 8. Provisions (other than tax) and contingencies 694.64 624.80 368.73 1,912.62 1,342.52 1,802.54 9. Exceptional items .. .. .. .. .. .. 10. PROFIT/(LOSS) FROM ORDINARY ACTIVITIES BEFORE TAX (7)–(8)–(9) 3,744.40 3,263.08 3,083.75 10,228.46 8,252.59 11,396.69 11. Tax expense (g)+(h) 1,212.19 911.03 833.51 3,069.99 2,231.19 3,071.22 g) Current period tax 1,083.46 849.49 746.91 2,918.33 2,162.81 3,005.20 h) Deferred tax adjustment 128.73 61.54 86.60 151.66 68.38 66.02 12. NET PROFIT/(LOSS) FROM ORDINARY ACTIVITIES AFTER TAX (10)–(11) 2,532.21 2,352.05 2,250.24 7,158.47 6,021.40 8,325.47 13. Extraordinary items (net of tax expense) 14. NET PROFIT/(LOSS) FOR THE PERIOD (12)–(13) 2,532.21 2,352.05 2,250.24 7,158.47 6,021.40 8,325.47 15. Paid-up equity share capital (face value Rs 10 /- each) 1,154.59 1,154.45 1,153.36 1,154.59 1,153.36 1,153.64 16. Reserves excluding revaluation reserves 72,895.97 71,943.42 65,961.38 72,895.97 65,961.38 65,547.84 17. Analytical ratios i) Percentage of shares held by Government of India 0.03 0.03 0.01 0.03 0.01 0.01 ii) Capital adequacy ratio a) Basel II 17.81 % 17.63 % 19.53 % 17.81 % 19.53 % 18.74 % b) Basel III 16.81 % 16.50 % NA 16.81 % NA NA iii) Earnings per share (EPS) a) Basic EPS before and after extraordinary items, net of tax expense (not annualised for three months/nine months) (in Rs) 21.93 20.38 19.51 62.02 52.23 72.20 b) Diluted EPS before and after extraordinary items, net of tax expense (not annualised for three months/nine months) (in Rs) 21.85 20.33 19.42 61.78 52.06 71.93 18. NPA Ratio 1 i) Gross non-performing advances (net of write-off) 10,399.13 10,028.45 9,763.39 10,399.13 9,763.39 9,607.75 ii) Net non-performing advances 3,118.44 2,697.63 2,181.53 3,118.44 2,181.53 2,230.56 iii) % of gross non-performing advances (net of write-off) to gross advances 3.05 % 3.08 % 3.31 % 3.05 % 3.31 % 3.22 % iv) % of net non-performing advances to net advances 0.94 % 0.85 % 0.76 % 0.94 % 0.76 % 0.77 % 19. Return on assets (annualised) 1.76 % 1.72 % 1.80 % 1.75 % 1.66 % 1.70 % 20. Public shareholding i) No. of shares 1,154,535,873 1,154,394,745 1,153,303,032 1,154,535,873 1,153,303,032 1,153,581,715 ii) Percentage of shareholding 100 100 100 100 100 100 21. Promoter and promoter group shareholding i) Pledged/encumbered a) No. of shares .. .. .. .. .. .. b) Percentage of shares (as a % of the total shareholding of promoter and promoter group) .. .. .. .. .. .. c) Percentage of shares (as a % of the total share capital of the Bank) .. .. .. .. .. .. ii) Non-encumbered a) No. of shares .. .. .. .. .. .. b) Percentage of shares (as a % of the total shareholding of promoter and promoter group) .. .. .. .. .. .. c) Percentage of shares (as a % of the total share capital of the Bank) .. .. .. .. .. .. 1 At December 31, 2013 , the percentage of gross non-performing customer assets to gross customer assets was 2.66% and net non-performing customer assets to net customer assets was 0.81%. Customer assets include advances and credit substitutes. SUMMARISED UNCONSOLIDATED BALANCE SHEET (Rs in crore) Particulars December 31, 2013 September 30, 2013 March 31, 2013 December 31, 2012 (Audited) (Audited) (Audited) (Audited) Capital and Liabilities Capital 1,154.59 1,154.45 1,153.64 1,153.36 Employees stock options outstanding 6.05 5.53 4.48 3.95 Reserves and surplus 72,895.97 71,943.42 65,547.84 65,961.38 Deposits 316,969.54 309,046.15 292,613.63 286,418.06 Borrowings (includes preference shares and subordinated debt) 150,940.21 145,356.18 145,341.49 147,149.07 Other liabilities and provisions 32,159.46 36,002.11 32,133.60 26,653.07 Total Capital and Liabilities 574,125.82 563,507.84 536,794.68 527,338.89 Assets Cash and balances with Reserve Bank of India 19,157.15 18,750.51 19,052.73 21,777.62 Balances with banks and money at call and short notice 13,369.29 14,829.76 22,364.79 19,351.02 Investments 171,984.60 168,828.64 171,393.60 166,842.01 Advances 332,632.05 317,786.23 290,249.43 286,765.98 Fixed assets 4,629.28 4,611.31 4,647.06 4,618.52 Other assets 32,353.45 38,701.39 29,087.07 27,983.74 Total Assets 574,125.82 563,507.84 536,794.68 527,338.89 CONSOLIDATED FINANCIAL RESULTS (Rs in crore) Sr. no. Particulars Three months ended Nine months ended Year ended December 31, 2013 September 30, 2013 December 31, 2012 December 31, 2013 December 31, 2012 March 31, 2013 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) 1. Total income 20,543.46 19,015.58 18,715.39 57,910.89 53,964.53 74,204.40 2. Net profit 2,872.30 2,697.42 2,644.61 8,317.11 7,111.56 9,603.61 3. Earnings per share (EPS) a) Basic EPS (not annualised for three months/nine months) (in Rs) 24.88 23.37 22.93 72.06 61.68 83.29 b) Diluted EPS (not annualised for three months/nine months) (in Rs) 24.76 23.27 22.79 71.67 61.38 82.84 UNCONSOLIDATED SEGMENTAL RESULTS (Rs in crore) Sr. no. Particulars Three months ended Nine months ended Year ended December 31, 2013 September 30, 2013 December 31, 2012 December 31, 2013 December 31, 2012 March 31, 2013 (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) 1. Segment Revenue a Retail Banking 7,095.93 6,758.08 5,698.63 20,190.95 16,742.23 22,585.63 b Wholesale Banking 8,408.84 8,111.21 8,264.85 24,221.61 23,502.34 31,368.76 c Treasury 10,156.77 9,156.86 9,025.02 28,733.66 26,451.45 35,586.28 d Other Banking 332.27 126.08 103.89 622.80 257.73 623.84 Total segment revenue 25,993.81 24,152.23 23,092.39 73,769.02 66,953.75 90,164.51 Less: Inter segment revenue 11,737.85 11,172.48 10,739.48 33,628.34 31,105.97 41,743.21 Income from operations 14,255.96 12,979.75 12,352.91 40,140.68 35,847.78 48,421.30 2. Segmental Results (i.e. Profit before tax) a Retail Banking 561.61 623.22 242.49 1,507.95 684.86 954.55 b Wholesale Banking 1,716.19 1,747.18 1,922.76 4,953.96 4,998.38 6,618.86 c Treasury 1,397.16 842.99 934.49 3,536.73 2,561.82 3,653.92 d Other Banking 69.44 49.69 (15.99 ) 229.82 7.53 169.36 Total segment results 3,744.40 3,263.08 3,083.75 10,228.46 8,252.59 11,396.69 Unallocated expenses .. .. .. .. .. .. Profit before tax 3,744.40 3,263.08 3,083.75 10,228.46 8,252.59 11,396.69 3. Capital employed (i.e. Segment assets – Segment liabilities) a Retail Banking (137,641.91 ) (137,299.41 ) (124,172.15 ) (137,641.91 ) (124,172.15 ) (131,343.72 ) b Wholesale Banking 143,876.07 130,360.65 123,905.41 143,876.07 123,905.41 119,763.46 c Treasury 62,351.85 71,115.31 59,610.96 62,351.85 59,610.96 69,818.44 d Other Banking 781.07 2,749.47 2,059.70 781.07 2,059.70 2,378.63 e Unallocated 4,689.53 6,177.38 5,714.77 4,689.53 5,714.77 6,089.15 Total 74,056.61 73,103.40 67,118.69 74,056.61 67,118.69 66,705.96 Notes on segmental results: 1. The disclosure on segmental reporting has been prepared in accordance with Reserve Bank of India (RBI) circular no. DBOD.No.BP.BC.81/21.04.018/2006-07 dated April 18, 2007 on guidelines on enhanced disclosures on "Segmental Reporting" which is effective from the reporting period ended March 31, 2008 . 2. "Retail Banking" includes exposures which satisfy the four criteria of orientation, product, granularity and low value of individual exposures for retail exposures laid down in Basel committee on Banking Supervision document "International Convergence of Capital Measurement and Capital Standards: A Revised Framework". 3. "Wholesale Banking" includes all advances to trusts, partnership firms, companies and statutory bodies, which are not included under Retail Banking. 4. "Treasury" includes the entire investment and derivative portfolio of the Bank. 5. "Other Banking" includes leasing operations and other items not attributable to any particular business segment of the Bank. Notes: 1. The above financial results have been approved by the Board of Directors at its meeting held on January 29, 2014 . 2. The financial statements have been prepared in accordance with Accounting Standard (AS) 25 on 'Interim Financial Reporting'. 3. In accordance with RBI guidelines, banks are required to disclose capital adequacy ratio computed under Basel III capital regulations from the quarter ended June 30, 2013 . Accordingly, corresponding details for previous periods are not applicable. 4. Pillar 3 (Market Discipline) disclosures (unaudited) as per RBI guidelines on Composition of Capital Disclosure Requirements at December 31, 2013 for the Group are available at http://www.icicibank.com/aboutus/invest-disclosure.html . 5. Reserve Bank of India (RBI) had issued guidelines on August 23, 2013 giving the banks an option to distribute the net depreciation on the ‘Available for Sale’ (AFS) and ‘Held for Trading’ (HFT) portfolios during FY2014 in equal installments. For the three months ended September 30, 2013 , the net depreciation on these portfolio of the Bank amounted to Rs 278.84 crore . The Bank did not opt to exercise this option and the entire depreciation for the three months ended September 30, 2013 was charged to the profit and loss account. Further, RBI has as a one time measure permitted the banks to transfer Statutory Liquidity Ratio (SLR) securities from AFS/HFT category to 'Held to Maturity' (HTM) category. Accordingly, during the three months ended September 30, 2013 , the Bank transferred SLR securities of Rs 2,328.54 crore from AFS/HFT category to HTM category. The Bank booked a loss of Rs 10.24 crore on the transfer of such securities. 6. The Bank creates Special Reserve through appropriation of profits, in order to avail tax deduction as per Section 36(1)(viii) of the Income Tax Act, 1961. The Reserve Bank of India , vide its circular dated December 20, 2013 , has advised banks to create a deferred tax liability (DTL) on the amount outstanding in Special Reserve, as a matter of prudence. In accordance with these RBI guidelines, during the three months ended December 31, 2013 , the Bank has created a DTL of Rs 1,419.23 crore on Special Reserve outstanding at March 31, 2013 , by reducing the reserves. Further, DTL of Rs 214.98 crore on the estimated Special Reserve for the nine months ended December 31, 2013 has been created in the three months ended December 31, 2013 . Accordingly, the tax expenses for the three months and nine months ended December 31, 2013 is higher by Rs 214.98 crore . 7. During the three months ended December 31, 2013 , the Bank has allotted 141,128 equity shares of Rs 10 /- each pursuant to exercise of employee stock options. 8. Status of equity investors' complaints/grievances for the three months ended December 31, 2013 : Opening balance Additions Disposals Closing balance 0 14 14 0 9. Previous period/year figures have been re-grouped/re-classified where necessary to conform to current period classification. 10. The above unconsolidated financial results are audited by the statutory auditors, S.R. Batliboi & Co. LLP , Chartered Accountants. 11. Rs 1 crore = Rs 10 million . Place : Mumbai N. S. Kannan Date : January 29, 2014 Executive Director ICICI Bank Limited Press queries: Sujit Ganguli , 91-22-2653 8525 ganguli.sujit@icicibank.com or Investor queries: Rakesh Mookim , 91-22-2653 6114 ir@icicibank.com Source: ICICI Bank Limited


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