India-centric asset

During fiscal 2009, its small enterprises customer base increased by 26% to about 1. 1 million accounts. The bank introduced their service offerings in over 400 new branches, increasing its coverage to over 1,000 branches. During the year, bank focused on product specialisation including investment banking for SMEs.

Bank continued to focus on shaping the small and medium enterprises sphere in India through initiatives such as the “Emerging India Awards”, the SME CEO Knowledge Series – a platform to mentor and assist SME entrepreneurs, and the “SME Dialogue” – a weekly feature in a leading financial newspaper sharing SME best practices and success stories. During the year, bank have launched several new products and services like the SME toolkit – an online business and advisory resource for SMEs. CORPOTARE BANKING ICICI corporate banking strategy is based on providing comprehensive and customised financial solutions to its corporate customers.

Bank offer a complete range of corporate banking products including rupee and foreign currency debt, working capital credit, structured financing, syndication and transaction banking products and services. ICICI corporate and investment banking franchise is built around a core relationship team that has strong relationships with almost all of the country’s corporate houses. The relationship team is product agnostic and is responsible for managing banking relationships with clients. It had also put in place product specific teams with a view to focus on specific areas of expertise in designing financial solutions for clients.

Through its relationship teams working in tandem with product solution teams, it has deepened its client relationships across product portfolio resulting in significant growth in income and wallet share among all their top corporate clients, as compared to the previous year. It had created an integrated Global Investment Banking Group, which is responsible for working with the relationship team in India and our international subsidiaries and branches, for origination, structuring and execution of investment banking mandates on a global basis.

Fiscal 2009 saw continued demand for credit from the corporate sector, with growth and additional investment demand across all sectors. During fiscal 2009 bank was involved in 75% of outbound mergers and acquisitions deals from India. ICICI is now a preferred partner for Indian companies for syndication of external commercial borrowings and other fund raising in international markets and have been ranked number one in offshore loan syndications of Indian corporates in calendar year 2008.

PROJECT FINANCE The Indian economy is witnessing significant investments with the investment pipeline projected at US$ 700.0 billion over the next few years. Its project finance proposition is based on constant endeavour to contribute to the project framework and enhance the bank ability of projects through innovative structuring skills, sectoral knowledge and robust due diligence techniques. Bank believe that there is significant potential in the infrastructure and manufacturing sectors. The power sector is expected to witness large investments involving significant capacity additions of more than 70 gigawatts over the next five years predominantly driven by increased private sector participation.

The ultra mega power projects, increasing interest in hydroelectric generation, and offering of transmission projects through competitive bidding are expected to provide attractive funding opportunities. In the transportation sector, road development is being undertaken across both the national highways (through the National Highway Development Programme) and the state highways. The port sector has been witnessing traffic growth of over 14% per annum for the last few years with increased participation of the private sector and international players.

There is an increased focus on the railways sector with investments expected in modernization of railway stations, logistic parks and dedicated freight corridors. The modernisation, upgradation and expansion of metro and non-metro airports are underway and are expected to provide significant business opportunities in the future. In addition to the Delhi and Mumbai airports, which have already been transferred to private developers, the airports at Kolkata and Chennai are also proposed to be modernised through a suitable model.

Greenfield airports are also proposed to be set up at key business and tourist destinations, such as Bangalore and Hyderabad, which have already seen project completion under private management. The telecom sector is expected to see continued growth given the relatively low teledensity and the fresh impetus provided by the issuance of new licenses, which would result in large investments in rollout of new networks alongside the network expansion of existing service providers.

The oil and gas sector is witnessing activity across the entire value chain, from exploration and production through increased private sector participation under the New Exploration Licensing Policy, to setting up of large-scale refineries by both public sector and private sector players. The manufacturing sector has seen significant capacity additions being undertaken and planned including Greenfield projects in steel, aluminium and cement. Strong growth in infrastructure, real estate and demand for consumer goods and automobiles is expected to increase the demand for steel, aluminium and cement.

India’s advantage in terms of low cost of manufacturing and availability of talent has led to several foreign majors setting up large capacities in auto, auto ancillaries and engineering industries to meet the growing domestic demand and also as a manufacturing hub to serve global markets. INTERNATIONAL BANKING In 2001, bank identified international banking as a key opportunity, aiming to cater to the cross-border needs of clients and leveraging their domestic banking strengths to offer products internationally.

It had made significant progress in the international business since they set up their first overseas branch in Singapore in 2003. ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka, Dubai International Finance Centre, Qatar Financial Centre and the United States and representative offices in the United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The Bank’s wholly owned subsidiary ICICI Bank UK PLC has nine branches in the United Kingdom and a branch each in Belgium and Germany.

ICICI Bank Canada has eight branches including three in Toronto. ICICI Bank Eurasia LLC has six branches including three branches in Moscow and one in St. Petersburg. There international strategy is focused on building a retail deposit franchise, diverse wholesale funding sources and strong syndication capabilities to support their corporate and investment banking business; achieving the status of a non-resident Indian (NRI) community bank in key markets; and expanding private banking operations for India-centric asset classes

Bank has established a strong franchise among NRIs by offering a comprehensive product suite, technology enabled access, a wide distribution network in India and alliances with local banks in various markets. Currently, it had over 500,000 NRI customers. They had undertaken significant brand-building initiatives in international markets and have emerged as a well-recognised financial services brand for NRIs. Bank continue to maintain a market share of 25% in inward remittances to India.

During fiscal 2009, Bank launched innovative products like instant money transfer and enhanced their focus on customer relationship management and process automation. Through its international private banking services, they offer various products to mass affluent and high networth clients based on their financial needs and risk appetite. The offerings range from simple deposits and loans to more sophisticated structured products, private equity and products giving exposure to the real estate sector in India.