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 six months ended September 30, 2011.

Profit & loss account
  • Consolidated profit after tax of the Bank increased by 47% to Rs 3,658 crore (US$ 747 million) for the six months ended September 30, 2011 (H1-2012) from Rs 2,486 crore (US$ 508 million) for the six months ended September 30, 2010 (H1-2011).
  • Standalone profit after tax increased 25% to Rs 2,835 crore (US$ 579 million) for H1-2012 from Rs 2,262 crore (US$ 462 million) for H1-2011.
  • Standalone profit after tax increased 22% to Rs 1,503 crore (US$ 307 million) for Q2-2012 from Rs 1,236 crore (US$ 252 million) for Q2-2011.
  • Net interest income increased 14% to Rs 2,506 crore (US$ 512 million) in Q2-2012 from Rs 2,204 crore (US$ 450 million) in Q2-2011.
  • Fee income increased 7% to Rs 1,700 crore (US$ 347 million) in Q2-2012 from Rs 1,590 crore (US$ 325 million) in Q2-2011.
  • Provisions decreased 50% to Rs 319 crore (US$ 65 million) in Q2-2012 from Rs 641 crore (US$ 131 million) in Q2-2011.

Operating review

The Bank has continued with its strategy of pursuing profitable growth. In this direction, the Bank continues to leverage its strong corporate franchise, its international presence and its expanded branch network in India. At September 30, 2011, the Bank had 2,535 branches and 6,913 ATMs, the largest branch network among private sector banks in the country.

Credit growth

Advances increased by 20% year-on-year to Rs 233,952 crore (US$ 47.8 billion) at September 30, 2011 from Rs 194,201 crore (US$ 39.6 billion) at September 30, 2010.

Deposit growth

During Q2-2012, savings deposits and current account deposits increased by Rs 3,291 crore (US$ 672 million) and Rs 3,220 crore (USD 657 million) respectively. At September 30, 2011 savings account deposits were Rs 70,149 crore (US$ 14.3 billion) and current account deposits were Rs 32,997 crore (US$ 6.7 billion). The CASA ratio at September 30, 2011 was 42.1%.

Capital adequacy

The Bank’s capital adequacy at September 30, 2011 as per RBI’s guidelines on Basel II norms was 18.99% and Tier-1 capital adequacy was 13.14%, well above RBI’s requirement of total capital adequacy of 9.0% and Tier-1 capital adequacy of 6.0%.

Asset quality

Net non-performing assets decreased 30% to Rs 2,236 crore (US$ 457 million) at September 30, 2011 from Rs 3,192 crore (US$ 652 million) at September 30, 2010. The Bank’s net non-performing asset ratio decreased to 0.80% at September 30, 2011 from 1.37% at September 30, 2010 and 0.91% at June 30, 2011. The Bank’s provision coverage ratio computed in accordance with RBI guidelines at September 30, 2011 was 78.2% compared to 69.0% at September 30, 2010 and 76.9% at June 30, 2011. Net restructured assets at September 30, 2011 were Rs. 2,501 crore (US$ 511 million).

Insurance subsidiaries

The profit after tax of ICICI Prudential Life Insurance Company (ICICI Life) for Q2-2012 was Rs 350 crore (US$ 71 million) compared to a profit of Rs 15 crore (US$ 3 million) during Q2-2011 (excluding surplus of Rs 254 crores (US$ 52 million) in non-participating policyholders’ funds in Q2-2011). The assets under management were Rs 64,849 crore (US$ 13.2 billion) at September 30, 2011.

The gross premium income of ICICI Lombard General Insurance Company (ICICI General) increased by 20% to Rs 1,306 crore (US$ 267 million) in Q2-2012 from Rs 1,091 crore (US$ 223 million) in Q2-2011. ICICI Lombard’s profit after tax for Q2-2012 was Rs 56 crore (US$ 11 million) compared to a profit of Rs 104 crore (US$ 21 million) for Q2-2011, mainly due to higher sourcing costs and lower investment income.

Summary Profit and Loss Statement (as per unconsolidated Indian GAAP accounts)

                       

Rs crore
  FY2011     Q1-2011   Q2-2011   H1-2011   Q1-2012   Q2-2012   H1-2012
Net interest income 9,017       1,991   2,204     4,195     2,411     2,506     4,917  
Non-interest income 6,648       1,680   1,578     3,258     1,643     1,740     3,383  
- Fee income 6,419       1,413   1,590     3,003     1,578     1,700     3,278  
- Lease and other income 444       163   132     295     90     120     210  
- Treasury income (215 )     104   (144 )   (40 )   (25 )   (80 )   (105 )
Less:                            
Operating expense 6,381       1,425   1,500     2,925     1,774     1,844     3,618  

Expenses on direct market agents (DMAs) 1
157       36   35     71     34     36     70  
Lease depreciation 79       22   35     57     12     12     24  
Operating profit 9,048       2,188   2,212     4,400     2,234     2,354     4,588  
Less: Provisions 2,287       798   641     1,439     454     319     773  
Profit before tax 6,761       1,390   1,571     2,961     1,780     2,035     3,815  
Less: Tax 1,610       364   335     699     448     532     980  
Profit after tax 5,151       1,026   1,236     2,262     1,332     1,503     2,835  
             

1. Represents commissions paid to direct marketing agents (DMAs) for origination of retail loans. These commissions are expensed upfront

2. Results for FY2011 take into account the impact of amalgamation of erstwhile Bank of Rajasthan from close of business on August 12, 2010

3. Prior period figures have been regrouped/re-arranged where necessary.
 

Summary Balance Sheet
             

Rs crore
 

September30, 2010
 

March31, 2011
 

June30, 2011
 

September30, 2011
Assets              
Cash & bank balances 34,848     34,090     34,894     36,179  
Advances 194,201     216,366     220,693     233,952  
Investments 136,275     134,686     139,556     147,685  
Fixed & other assets 24,674     21,092     20,072     22,909  
Total 389,998     406,234     415,215     440,725  
Liabilities              
Net worth 53,975     55,091     56,461     58,602  
- Equity capital 1,151     1,152     1,152     1,152  
- Reserves 52,824     53,939     55,309     57,450  
Deposits 223,094     225,602     230,678     245,092  
CASA ratio 44.0 %   45.1 %   41.9 %   42.1 %
Borrowings 1 97,010     109,554     114,051     121,324  
Other liabilities 15,919     15,987     14,025     15,707  
Total 389,998     406,234     415,215     440,725  
 

1. Borrowings include preference shares amounting to Rs 350 crore

2. Figures for March 31, 2011 and September 30, 2010 take into account the impact of amalgamation of erstwhile Bank of Rajasthan from close of business on August 12, 2010.
 

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, including on the assets and liabilities of ICICI, a former financial institution not subject to Indian banking regulations, the bond and loan market conditions and availability of liquidity amongst the investor community in these markets, the nature 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.

1 crore = 10.0 million US$ amounts represent convenience translations at US$1 = Rs 48.98

UNCONSOLIDATED FINANCIAL RESULTS
                       

(Rs in crore)
Sr. No. Particulars   Three months ended     Six months ended     Year ended    

September30, 2011
    June

30, 2011
    September

30, 2010
    September

30, 2011
    September

30, 2010
    March

31, 2011
   
  (Unaudited)     (Audited)     (Audited)     (Audited)     (Audited)     (Audited)    
1. Interest earned (a)+(b)+(c)+(d)   8,157.62     7,618.52     6,309.10     15,776.14     12,121.64     25,974.05    
a) Interest/discount on advances/bills   5,380.74     4,935.13    

3,949.17
    10,315.87     7,727.70     16,424.78    
b) Income on investments   2,344.98     2,251.03     1,916.13     4,596.01     3,574.68     7,905.19    
c) Interest on balances with Reserve Bank of India and other inter-bank funds   115.27     113.83     82.30     229.10     180.36     366.77    
d) Others   316.63     318.53     361.50     635.16     638.90     1,277.31    
2. Other income   1,739.55     1,642.89     1,577.93     3,382.44     3,258.44     6,647.90    
3. TOTAL INCOME (1)+(2)   9,897.17     9,261.41     7,887.03     19,158.58     15,380.08     32,621.95    
4. Interest expended   5,651.18     5,207.60     4,104.72     10,858.78     7,926.21     16,957.15    
5. Operating expenses (e)+(f)+(g)   1,892.24     1,819.78     1,570.37     3,712.02     3,053.86     6,617.25    
e) Employee cost   842.70     732.85     624.26     1,575.55     1,199.85     2,816.94    
f) Direct marketing expenses   36.22     33.62     35.48     69.84     71.29     157.03    
g) Other operating expenses   1,013.32     1,053.31     910.63     2,066.63     1,782.72     3,643.28    
6. TOTAL EXPENDITURE (4)+(5)

(excluding provisions and contingencies)
  7,543.42     7,027.38     5,675.09     14,570.80     10,980.07     23,574.40    
7. OPERATING PROFIT (3)–(6)

(Profit before provisions and contingencies)
  2,353.75     2,234.03     2,211.94     4,587.78     4,400.01     9,047.55    
8. Provisions (other than tax) and contingencies   318.79     453.86     641.14     772.65     1,438.96     2,286.84    
9.

Exceptional items
 

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10. PROFIT/(LOSS) FROM ORDINARY ACTIVITIES BEFORE TAX (7)–(8)–(9)   2,034.96     1,780.17     1,570.80     3,815.13     2,961.05     6,760.71    
11. Tax expense (h)+(i)   531.77     447.97     334.53     979.74     698.80     1,609.33    
h) Current period tax   544.48     527.03     495.10     1,071.51     1,010.20     2,141.11    
i) Deferred tax adjustment   (12.71 )   (79.06 )   (160.57 )   (91.77 )   (311.40 )   (531.78 )  
12. NET PROFIT/(LOSS) FROM ORDINARY ACTIVITIES AFTER TAX (10)–(11)   1,503.19     1,332.20     1,236.27     2,835.39     2,262.25     5,151.38    
13. Extraordinary items (net of tax expense)  

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14. NET PROFIT/(LOSS) FOR THE PERIOD (12)–(13)   1,503.19     1,332.20     1,236.27     2,835.39     2,262.25     5,151.38    
15.

Paid-up equity share capital (face value Rs 10/-)
  1,152.47     1,152.18     1,150.83     1,152.47     1,150.83     1,151.82    
16. Reserves excluding revaluation reserves   57,448.45     55,308.14     52,824.02     57,448.45     52,824.02     53,938.83    
17. Analytical ratios                                      
i) Percentage of shares held by Government of India  

..
   

..
   

..
   

..
   

..
   

..
   
ii) Capital adequacy ratio   18.99 %   19.57 %   20.23 %   18.99 %   20.23 %   19.54 %  
iii) Earnings per share (EPS)                                      

a) Basic EPS before and after extraordinary items, net of tax expense (not annualised for three months/six months)(in Rs)
  13.05     11.56     10.91     24.61     20.11     45.27    

b) Diluted EPS before and after extraordinary items, net of tax expense (not annualised for three months/six months)(in Rs)
  13.00     11.51     10.86     24.51     20.03     45.06    
18. NPA Ratio 1                                      
i) Gross non-performing advances(net of write-off)   10,021.25     9,982.76     10,141.16     10,021.25     10,141.16     10,034.26    
ii) Net non-performing advances   2,183.77     2,302.52     3,145.23     2,183.77     3,145.23     2,407.36    
iii) % of gross non-performing advances(net of write-off) to gross advances   4.14 %   4.36 %   5.03 %   4.14 %   5.03 %   4.47 %  
iv) % of net non-performing advances to net advances   0.93 %   1.04 %   1.62 %   0.93 %   1.62 %   1.11 %  
19. Return on assets (annualised)   1.41 %   1.30 %   1.31 %   1.36 %   1.23 %   1.35 %  
20. Public shareholding                                      
i) No. of shares   1,152,412,079     1,152,129,421     1,147,919,537     1,152,412,079     1,147,919,537     1,151,772,372    
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)  

..
   

..
   

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..
   

..
   
         

1.  At September 30, 2011, the percentage of gross non-performing customer assets to gross customer assets was 3.52% and net non-performing customer assets to net customer assets was 0.80%. Customer assets include advances and credit substitutes.
 

SUMMARISED UNCONSOLIDATED BALANCE SHEET

 
 

    (Rs in crore)
Particulars At

September30, 2011
 

June30, 2011
 

September30, 2010
 

March31, 2011
  (Audited)  

(Audited)
  (Audited)   (Audited)
Capital and Liabilities                
Capital   1,152.47   1,152.18   1,150.83   1,151.82
Employees stock options outstanding   1.32   0.81  

..
  0.29
Reserves and surplus   57,448.45   55,308.14   52,824.02   53,938.83
Deposits   245,091.72   230,677.76   223,094.12   225,602.11
Borrowings (includes preference shares and subordinated debt)   121,323.66   114,051.03   97,009.75   109,554.28
Other liabilities   15,707.59   14,025.37   15,919.28   15,986.34
Total Capital and Liabilities   440,725.21   415,215.29   389,998.00   406,233.67
                 
Assets                
Cash and balances with Reserve Bank of India   23,301.52   19,218.36   22,867.21   20,906.97
Balances with banks and money at call and short notice   12,877.47   15,676.01   11,980.60   13,183.11
Investments   147,684.88   139,555.95   136,275.51   134,685.96
Advances   233,952.22   220,693.03   194,200.72   216,365.90
Fixed assets   4,696.52   4,699.42   4,780.83   4,744.26
Other assets   18,212.60   15,372.52   19,893.13   16,347.47
Total Assets   440,725.21   415,215.29   389,998.00   406,233.67
     

CONSOLIDATED FINANCIAL RESULTS
     

  (Rs in crore)
Sr. No. Particulars Three months ended   Six months ended   Year ended

September30, 2011
 

June30, 2011
 

September30, 2010
 

September30, 2011
 

September30, 2010
 

March31, 2011
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Audited)
1. Total income   16,110.61   14,749.79   14,464.55   30,860.40   27,999.86   61,594.70
2. Net profit   1,991.68   1,666.77   1,394.94   3,658.45   2,485.94   6,093.27
3. Earnings per share (EPS)                        

a) Basic EPS (not annualised for three months/six months)(in Rs)
  17.28   14.47   12.31   31.75   22.10   53.54

b) Diluted EPS (not annualised for three months/six months)(in Rs)

 
  17.20   14.37   12.23   31.57   21.98   53.25

UNCONSOLIDATED SEGMENTAL RESULTS OF ICICI BANK LIMITED
     

(Rs in crore)
Sr. No. Particulars Three months ended   Six months ended   Year ended

September30, 2011
 

June30, 2011
 

September30, 2010
 

September30, 2011
 

September30, 2010
 

March31, 2011
  (Unaudited)   (Audited)   (Audited)   (Audited)   (Audited)   (Audited)
1. Segment revenue                        
a Retail Banking   4,852.42   4,682.83   3,943.78   9,535.25   7,771.56   15,973.49
b Wholesale Banking   6,344.67   5,644.05   4,625.18   11,988.72   8,840.07   19,323.27
c Treasury   7,230.43   7,013.95   5,597.34   14,244.38   11,116.14   23,744.18
d Other Banking   65.50   70.02   130.73   135.52   204.48   430.31
  Total segment revenue   18,493.02   17,410.85   14,297.03   35,903.87   27,932.25   59,471.25
  Less: Inter segment revenue   8,595.85   8,149.44   6,410.00   16,745.29   12,552.17   26,849.30
  Income from operations   9,897.17   9,261.41   7,887.03   19,158.58   15,380.08   32,621.95
2. Segmental results (i.e. Profit before tax)                        
a Retail Banking   105.60   (84.14)   (116.74)   21.46   (334.07)   (514.19)
b Wholesale Banking   1,595.29   1,205.52   1,210.68   2,800.81   2,140.52   4,899.70
c Treasury   347.12   635.05   430.97   982.17   1,087.12   2,200.70
d Other Banking   (13.05)   23.74   45.89   10.69   67.48   174.50
  Total segment results   2,034.96   1,780.17   1,570.80   3,815.13   2,961.05   6,760.71
  Unallocated expenses  

..
 

..
 

..
 

..
 

..
 

..
  Profit before tax   2,034.96   1,780.17   1,570.80   3,815.13   2,961.05   6,760.71
3. Capital employed

(i.e. Segment assets – Segment liabilities)
                       
a Retail Banking   (98,663.37)   (90,850.77)   (72,171.99)   (98,663.37)   (72,171.99)   (87,448.42)
b Wholesale Banking   88,891.70   82,868.20   45,168.68   88,891.70   45,168.68   80,539.62
c Treasury   61,675.92   58,192.33   74,327.81   61,675.92   74,327.81   54,883.25
d Other Banking   1,224.37   817.29   724.74   1,224.37   724.74   963.00
e Unallocated   5,473.62   5,434.08   5,925.61   5,473.62   5,925.61   6,153.49
  Total   58,602.24   56,461.13   53,974.85   58,602.24   53,974.85   55,090.94
     
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 portfolio of the Bank.
5. “Other Banking” includes hire purchase and leasing operations and other items not attributable to any particular business segment.
 
Notes:
 
1.   The financial statements have been prepared in accordance with Accounting Standard (AS) 25 on ‘Interim Financial Reporting’.
2. The Bank of Rajasthan Limited (Bank of Rajasthan), a banking company incorporated under the Companies Act, 1956 and licensed by RBI under the Banking Regulation Act, 1949 was amalgamated with ICICI Bank Limited (ICICI Bank) with effect from close of business of August 12, 2010 in terms of the Scheme of Amalgamation (the Scheme) approved by the Reserve Bank of India vide its order DBOD No. PSBD 2603/16.01.128/2010-11 dated August 12, 2010 under sub section (4) of section 44A of the Banking Regulation Act, 1949. The consideration for the amalgamation was 25 equity shares of ICICI Bank of the face value of Rs 10/- each fully paid-up for every 118 equity shares of Rs 10/- each of Bank of Rajasthan. Accordingly, ICICI Bank allotted 31,323,951 equity shares to the shareholders of Bank of Rajasthan on August 26, 2010 and 2,860,170 equity shares which were earlier kept in abeyance pending civil appeal, on November 25, 2010.
3. The provision coverage ratio of the Bank at September 30, 2011, computed as per the RBI circular dated December 1, 2009, is 78.2% (June 30, 2011: 76.9%; March 31, 2011: 76.0%; September 30, 2010: 69.0%).
4. In accordance with the clarification issued by Insurance Regulatory and Development Authority (IRDA) dated December 27, 2010 stating that the surplus arising on the non-participating policyholders’ funds (non-par funds) may be recognised in the profit and loss account on a quarterly basis instead of only at financial year-end, ICICI Prudential Life Insurance Company (ICICI Life) transfers the surplus on the non-par funds in the profit and loss account on a quarterly basis with effect from the three months ended December 31, 2010 (Q3-2011). Accordingly, the net loss after tax of ICICI Life of Rs 100.99 crore for the six months ended September 30, 2010 (H1-2011) does not include the surplus on the non-par funds of Rs 488.88 crore and the net profit after tax of Rs 14.90 crore for the three months ended September 30, 2010 (Q2-2011) does not include the surplus on the non-par funds of Rs 254.17 crore, which was transferred to the profit and loss account in Q3-2011.
5. During the three months ended September 30, 2011, the Bank has allotted 282,658 equity shares of Rs 10/- each pursuant to exercise of employee stock options.
6. Status of equity investors’ complaints/grievances for the three months ended September 30, 2011:
          Opening balance   Additions   Disposals   Closing balance
2   11   13   0
7.   Previous period/year figures have been re-grouped/re-classified where necessary to conform to current period classification.
8. The above financial results have been approved by the Board of Directors at its meeting held on October 31, 2011.
9. The above unconsolidated financial results are audited by the statutory auditors, S.R. Batliboi & Co., Chartered Accountants.

10.

Rs 1 crore = Rs 10 million.

N. S. Kannan Executive Director & CFO

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