Corporate Banking

Agenda

• Global environment
• Indian economy
• ICICI Group: Positioning & strengths
• Opportunities
Three key emerging trends in India

Improving macro-economic
conditions

Strong momentum in digital

Huge impetus on corporate

growth

3
Recent trends in the Indian
economy
• Signs of improvement in economic activity
• GDP grew by 7.6% in FY2016; growth in manufacturing improved from
5.5% in FY2015 to 9.3% in FY2016
• ~12% y-o-y growth in vehicle sales in Apr-Aug 2016
• 8.8% y-o-y growth in foods grains production; crop area under
cultivation higher driven by good monsoon season
• Inflation at 5.0% in August 2016; monetary policy stance continues to be
accommodative
• Strong external sector trends: BoP remains in surplus; current account deficit
muted at 0.1% of GDP

4
Global economic overview
• Growth in gross capital formation remained subdued; was at 29.4% during
FY2016 vis-a-vis 30.8% in FY2015
• Exports impacted by a weak global environment; ~3.0% Y-o-Y decrease in Apr-
Aug 2016
• Sales of private corporate business sector contracted for the first time in
fifteen years in FY20161
• Asset quality of banks impacted by environmental factors objective of early
and conservative recognition of stress and provisioning

5
Strong momentum in digital
• India ranks #2 in the world in terms of 5.2%
internet users, mobile phone and 5.2%
smartphone users1 5.1%
• Internet users and smartphone users
2.8%
expected to double by 2021
• Government’s flagship Digital India
programme has a vision to transform
India into a digitally empowered 17.4% 54.3%
society
• Policy focus and consumer behaviour
seeking to increase migration to
electronic channels of payment
• Several digital solutions introduced in
financial services

1. Source: eMarketer, Ericsson, UN Estimates, BCG Research 6

Widest range of
Trade Finance services
Penetration of financial services
Rising financial savings of households
• Net financial savings of household sector increased from 7.2% of GNDI1 in
FY2013 to 7.7% of GNDI1 in FY2016
• Lower inflation and positive real interest rates expected to drive growth in
financial savings going forward

Significant under-penetration in insurance

• Life insurance was 2.0% of GNDI1 in FY2016
• General insurance penetration at 0.7%2 of GDP in FY2015
• Mortality protection gap high at USD 8.5 trillion3

8
Penetration of financial services
Healthy equity and debt capital market flows
• Equity market turnover1 has almost doubled compared to FY2014
• ~17% y-o-y growth in outstanding corporate bonds and commercial paper
issued by companies at June 30, 2016

1. Daily average; includes cash and derivative turnover 9

ICICI Group: Spanning the spectrum of financial services

Banking

Life Investment
Insurance Banking

General
Mutual Funds
Insurance

10
Strong retail franchise

Trade Cash
Forex
Finance Treasury Management
services
Services Services

The Bank continues to scale up its business and

invest in strengthening the franchise and distribution
infrastructure

Leveraging digitization & mobility to strengthen

franchise & improve performance
Robust funding profile
Significant improvement in funding profile over years
• Segment constitutes ~46% of the Advances Portfolio (₹ bn)
total loan book
2088
• ~20% CAGR in retail loans since Mar 1644
2012 1320
1074
964

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16
Competitive rates
Billion (₹) FY Q1 Q4 Q1 Q1-0-Q1
2016 2016 2016 2017 growth
NII 212.24 51.15 54.05 51.59 0.9%
Non-interest income 153.22 29.90 51.09 34.29 14.7%
- Fee income 88.20 21.10 22.12 21.50 2.2%
- Other income1 24.42 6.73 7.07 5.05 25.0%
- Treasure income2 40.60 2.07 21.90 7.68 -
Total Income 365.46 81.05 105.14 85.88 6.0%
Operating expenses 126.83 30.67 34.06 33.73 10.0%
Operating Profit 238.63 50.38 71.08 52.15 3.5%

1. Includes net foreign gains relating to overseas operations of ₹9.41 billion in FYI2016, ₹3.47 billion
in Q1-2016 billion in Q4-2016 and ₹2.06 billion in Q1-2017
2. Includes profit on sale on shareholding in ICICI Life and ICICI General of ₹21.31 billion in
Q4.2016 and ₹33.74 billion in FY2016
13
Sector-wise exposure Retail finance Electronics
Banks Road
Top 8 sector based on total Crude Power

exposure of the bank Services Iron

100

75

50

25

0
March 31, 2012 March 31, 2013 March 31, 2014

14
Robust growth across segments
y-o-y loan growth (%) Portfolio Composition
100 5.2%
Personal loans 5.2%
5.1%
75 Credit Cards
2.8%
Rural & others
50
Home 17.4% 54.3%
25 Vehicle

Business
0 banking

Growth at 22.1% y-o-y Total at $2,008 bn at Jun

15
Thank you