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Notes to Accounts of ICICI Bank Ltd.

Mar 31, 2015

Rs. in ''000s

At At 31.03.2015 31.03.2014

SCHEDULE 1 - CONTINGENT LIABILITIES

I. Claims against the Bank not acknowledged as debts 39,770,154 42,236,215

II. Liability for partly paid investments 65,787 65,787

III. Liability on account of outstanding forward exchange contracts1 2,898,724,970 2,691,373,680

IV. Guarantees given on behalf of constituents

a) In India 755,159,468 759,132,326

b) Outside India 238,105,768 262,927,479

V. Acceptances, endorsements and other obligations 496,588,147 505,542,096

VI. Currency swaps1 514,309,351 594,394,058

VII. Interest rate swaps, currency options and interest rate futures1 3,538,297,671 2,919,036,799

VIII. Other items for which the Bank is contingently liable 38,754,775 39,596,011

TOTAL CONTINGENT LIABILITIES 8,519,776,091 7,814,304,45

1. Represents notional amount.

Overview

ICICI Bank Limited (ICICI Bank or the Bank), incorporated in Vadodara, India is a publicly held banking company engaged in providing a wide range of banking and financial services including commercial banking and treasury operations. ICICI Bank is a banking company governed by the Banking Regulation Act, 1949. The Bank also has overseas branches in Bahrain, Dubai, Hong Kong, Qatar, Sri Lanka, China, Singapore, United States of America and Offshore Banking Unit.

Basis of preparation

The financial statements have been prepared in accordance with requirements prescribed under the Third Schedule of the Banking Regulation Act, 1949. The accounting and reporting policies of ICICI Bank used in the preparation of these financial statements conform to Generally Accepted Accounting Principles in India (Indian GAAP), the guidelines issued by Reserve Bank of India (RBI) from time to time, Companies Act, 2013 and the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies (Accounting Standards) Rules, 2006 to the extent applicable and practices generally prevalent in the banking industry in India. The Bank follows the historical cost convention and the accrual method of accounting, except in the case of interest income on non-performing assets (NPAs) where it is recognised upon realisation.

The preparation of financial statements requires the management to make estimates and assumptions that are considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

The following additional disclosures have been made taking into account the requirements of Accounting Standards (ASs) and Reserve Bank of India (RBI) guidelines in this regard.

1. Earnings per share

Basic and diluted earnings per equity share are computed in accordance with AS 20 - Earnings per share. Basic earnings per equity share are computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. The diluted earnings per equity share is computed using the weighted average number of equity shares and weighted average number of dilutive potential equity shares outstanding during the year.

The shareholders of the Bank have approved the sub-division of one equity share of Rs.10 into five equity shares having a face value of Rs. 2 each through postal ballot on November 20, 2014. The record date for the sub-division was December 5, 2014. All shares and per share information in the financial results reflect the effect of sub-division for each of the periods presented.

2. Business/information ratios

The following table sets forth, for the periods indicated, the business/information ratios.

1. For the purpose of computing the ratio, working funds represent the monthly average of total assets computed for reporting dates of Form X submitted to RBI under Section 27 of the Banking Regulation Act, 1949.

2. Operating profit is profit for the year before provisions and contingencies.

3. For the purpose of computing the ratio, assets represent monthly average of total assets computed for reporting dates of Form X submitted to RBI under Section 27 of the Banking Regulation Act, 1949.

4. Computed based on average number of employees which include sales executives, employees on fixed term contracts and interns.

5. The average deposits and the average advances represent the simple average of the figures reported in Form A to RBI under Section 42(2) of the Reserve Bank of India Act, 1934.

3. Capital adequacy ratio

The Bank is subject to the Basel III capital adequacy guidelines stipulated by RBI with effect from April 1, 2013. The guidelines provide a transition schedule for Basel III implementation till March 31, 2019. As per the guidelines, the Tier-1 capital is made up of Common Equity Tier-1 (CET1) and Additional Tier-1.

At March 31, 2015, Basel III guidelines require the Bank to maintain a minimum capital to risk-weighted assets ratio (CRAR) of 9.0% with minimum CET1 CRAR of 5.5% and minimum Tier-1 CRAR of 7.0%.

The following table sets forth, for the period indicated, computation of capital adequacy as per Basel III framework.

4. Liquidity coverage ratio

The Basel Committee for Banking Supervision (BCBS) had proposed the liquidity coverage ratio (LCR) in order to ensure that a bank has an adequate stock of unencumbered high quality liquid assets (HQLA) to survive a significant liquidity stress lasting for a period of 30 days. LCR is defined as a ratio of HQLA to the total net cash outflows estimated for the next 30 calendar days. As per the RBI guidelines the minimum LCR required to be maintained by banks shall be implemented in the phased manner from January 1,2015 as given below.

The Bank has been computing its LCR on a monthly basis since January 2015 as per the RBI guidelines. The following table sets forth the average of unweighted and weighted value of the LCR of the Bank, based on month end values, for the three months ended March 31,2015.

Liquidity of the Bank is managed by the Asset Liability Management Group (ALMG) under the central oversight of the Asset Liability Management Committee (ALCO). For the domestic operations of the Bank, ALMG-India is responsible for the overall management of liquidity. For the overseas branches of the Bank, a decentralised approach is followed for day-to-day liquidity management, while a centralised approach is followed for long term funding in co-ordination with Head-Office. Liquidity in overseas branches is maintained taking into consideration both host country as well as the RBI regulations.

The Bank during the three months ended March 31, 2015 maintained average HQLA (after haircut) of Rs. 569,153.4 million against the average liquidity requirement of Rs. 336,609.6 million at minimum LCR requirement of 60%. HQLA primarily included cash, balance in excess of cash reserve requirement with RBI and the central banks of countries where Bank''s branches are located amounting to Rs. 119,941.0 million, government securities in excess of minimum statutory liquidity ratio (SLR) and to the extent allowed under marginal standing facility (MSF) and facility to avail liquidity for LCR (FALLCR) of Rs. 405,228.9 million. Further, average level 2 assets primarily consisting of AA- and above rated corporate bonds and commercial papers were Rs. 29,028.0 million.

The Bank has been focusing on increasing its core liabilities, including current and savings account (CASA) deposits, retail term deposits and long-term bond borrowings in order to reduce its dependence on wholesale short-term liabilities and elongate the maturity profile of liabilities. At March 31,2015, top liability products/instruments and their percentage contribution to the total liabilities of the Bank were saving account deposits 17.78%, term deposits 30.52%, bond borrowings 13.83% and current account deposits 7.66%. It may be noted that top 20 depositors constituted 6.43% of total deposits of the Bank at March 31,2015. Further, the total borrowings mobilised from significant counterparties (from whom, the funds borrowed were more than 1.00% of the Bank''s total liabilities), were 13.66% of the total liabilities of the Bank at March 31,2015.

The weighted cash outflows are primarily driven by unsecured wholesale funding which includes operational deposits, non-operational deposits and unsecured debt. The unsecured wholesale funding contributed 50.19% of the total weighted cash outflows. The non-operational deposits includes term deposits with premature withdrawal facility. Retail deposits including deposits from small business customers and other contingent funding obligations contributed 24.58% and 12.37% of the total weighted cash outflows respectively. The other contingent funding obligations primarily include bank guarantees (BGs) and letters of credit (LCs) issued on behalf of the Bank''s clients.

Liquidity requirement of the Bank on account of market valuation changes for derivative transactions was limited as the Bank has not signed Credit Support Annex (CSA) with any of its clients/interbank counterparties. However, the Bank may be required to post additional collateral due to market valuation changes on derivative transactions settled through Clearing Corporation of India (CCIL) which is a Qualified Central Counterparty (QCCP) in India. The outflow on account of market valuation change for derivative transactions with CCIL has been considered based on the prescribed look back approach.

Based on the above, monthly average LCR of the Bank for the three months ended March 31, 2015 was 101.45%. It may be noted that during the three months ended on March 31, 2015, other than Indian Rupee, USD was the only significant foreign currency which constituted more than 5.00% of the balance sheet size of the Bank. Average LCR of the Bank for USD currency was 100.83% for the three months ended March 31,2015.

5. Information about business and geographical segments Business Segments

Pursuant to the guidelines issued by RBI on AS 17 - Segment Reporting- Enhancement of Disclosures dated April 18, 2007, effective from year ended March 31,2008, the following business segments have been reported.

- 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 BCBS document "International Convergence of Capital Measurement and Capital Standards: A Revised Framework".

- Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, which are not included under Retail Banking.

- Treasury includes the entire investment and derivative portfolio of the Bank.

- Other Banking includes leasing operations and other items not attributable to any particular business segment.

I ncome, expenses, assets and liabilities are either specifically identified with individual segments or are allocated to segments on a systematic basis.

All liabilities are transfer priced to a central treasury unit, which pools all funds and lends to the business units at appropriate rates based on the relevant maturity of assets being funded after adjusting for regulatory reserve requirements.

The transfer pricing mechanism of the Bank is periodically reviewed. The segment results are determined based on the transfer pricing mechanism prevailing for the respective reporting periods.

Geographical segments

The Bank reports its operations under the following geographical segments.

- Domestic operations comprise branches in India.

- Foreign operations comprise branches outside India and offshore banking unit in India. The following table sets forth, for the periods indicated, geographical segment revenues.

7. Preference shares

Certain government securities amounting to Rs. 3,088.6 million at March 31, 2015 (March 31, 2014: Rs. 2,970.9 million) have been earmarked against redemption of preference shares issued by the Bank, which fall due for redemption on April 20, 2018, as per the original terms of the issue.

8. Employee Stock Option Scheme (ESOS)

In terms of the ESOS, as amended, the maximum number of options granted to any eligible employee in a financial year shall not exceed 0.05% of the issued equity shares of the Bank at the time of grant of the options and aggregate of all such options granted to the eligible employees shall not exceed 10% of the aggregate number of the issued equity shares of the Bank on the date(s) of the grant of options. Under the stock option scheme, eligible employees are entitled to apply for equity shares. Options vest in a graded manner over a four-year period, with 20%, 20%, 30% and 30% of the grants vesting in each year, commencing from the end of 12 months from the date of grant. Options granted in April, 2009 vest in a graded manner over a five-year period with 20%, 20%, 30% and 30% of grant vesting each year, commencing from the end of 24 months from the date of grant. Options granted in September, 2011 vest in a graded manner over a five-years period with 15%, 20%, 20% and 45% of grant vesting each year, commencing from the end of 24 months from the date of the grant. Options granted after April, 2014 vest in a graded manner over a three-year period with 30%, 30% and 40% of the grant vesting in each year, commencing from the end of 12 months from the date of grant. Out of the total options granted, for a grant of 50,000, 50% of the options granted would vest on April 30, 2017 and the balance are scheduled to vest on April 30, 2018. The options can be exercised within 10 years from the date of grant or five years from the date of vesting, whichever is later. The exercise price of Bank''s options was the last closing price on the stock exchange, which recorded highest trading volume preceding the date of grant of options. Hence, there was no compensation cost based on intrinsic value of options.

In February 2011, the Bank granted 15,175,000 options to eligible employees and whole-time Directors of the Bank and certain of its subsidiaries at an exercise price of Rs. 193.40. Of these options granted, 50% vested on April 30, 2014 and the balance 50% would vest on April 30, 2015. The options can be exercised within 10 years from the date of grant or five years from the date of vesting, whichever is later. Based on intrinsic value of options, compensation cost of Rs. 16.4 million was recognised during the year ended March 31,2015 (March 31,2014: Rs. 20.9 million).

If the Bank had used the fair value of options based on binomial tree model, compensation cost in the year ended March 31, 2015 would have been higher by Rs. 2,819.5 million and proforma profit after tax would have been Rs. 108.93 billion. On a proforma basis, the Bank''s basic and diluted earnings per share would have been Rs. 18.83 and Rs. 18.65 respectively. The key assumptions used to estimate the fair value of options granted during the year ended March 31,2015 are given below.

The weighted average fair value of options granted during the year ended March 31, 2015 is Rs. 90.09 (March 31, 2014: Rs. 118.59).

9. Subordinated debt

During the year ended March 31, 2015, the Bank has not raised subordinated debt qualifying for Tier-2 capital (March 31,2014: Nil).

10. Repurchase transactions

The following tables set forth for the periods indicated, the details of securities sold and purchased under repo and reverse repo transactions respectively including transactions under Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF).

11. Investment in securities, other than government and other approved securities (Non-SLR investments) i) Issuer composition of investments in securities, other than government and other approved securities

The following table sets forth, the issuer composition of investments of the Bank in securities, other than government and other approved securities at March 31,2015.

3. Excludes investments, amounting to Rs. 4,396.9 million in preference shares of subsidiaries and Rs. 2,465.0 million in subordinated bonds of subsidiary ICICI Bank Canada.

4. Excludes equity shares, units of equity-oriented mutual fund, units of venture capital fund, pass through certificates, security receipts, commercial papers, certificates of deposit, non-convertible debentures (NCDs) with original or initial maturity up to one year issued by corporate (including NBFCs), unlisted convertible debentures and securities acquired by way of conversion of debt.

5. "Others" include deposits under rural infrastructure development fund/rural housing development fund (RIDF/RHDF) deposit schemes amounting to Rs. 284,508.2 million.

6. Excludes investments in non-Indian government securities by overseas branches amounting to Rs. 17,824.0 million

7. Excludes investments in non-SLR Indian government securities amounting to Rs. 90.8 million.

The following table sets forth, the issuer composition of investments of the Bank in securities, other than government and other approved securities at March 31,2014.

1. Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.

2. Includes Rs. 44,898.3 million of application money towards corporate bonds/debentures and pass through certificates.

3. Excludes investments, amounting to Rs. 4,809.1 million in preference shares of subsidiaries and Rs. 2,710.6 million in subordinated bonds of subsidiary ICICI Bank Canada.

4. Excludes equity shares, units of equity-oriented mutual fund, units of venture capital fund, pass through certificates, security receipts, commercial papers, certificates of deposit, non-convertible debentures (NCDs) with original or initial maturity up to one year issued by corporate (including NBFCs), unlisted convertible debentures and securities acquired by way of conversion of debt.

5. "Others" include deposits under rural infrastructure development fund/rural housing development fund (RIDF/RHDF) deposit schemes amounting to Rs. 248,192.8 million.

6. Excludes investments in non-Indian government securities by overseas branches amounting to Rs. 7,095.9 million.

7. Excludes investments in non-SLR Indian government securities amounting to Rs. 167.8 million.

ii) Non-performing investments in securities, other than government and other approved securities

The following table sets forth, for the periods indicated, the movement in gross non-performing investments in securities, other than government and other approved securities.

13. Sales and transfers of securities to/from Held to Maturity (HTM) category

During the year ended March 31,2015 the value of sales and transfers of securities to/from HTM category (excluding one-time transfer of securities to/from HTM category with the approval of Board of Directors permitted to be undertaken by banks at the beginning of the accounting year, sale to RBI under pre-announced Open Market Operation auctions and repurchase of Government securities by Government of India) had exceeded 5% of the book value of the investments held in HTM category at the beginning of the year. The market value of investments held in the HTM category was Rs. 1,271,386.6 million at March 31, 2015 which includes investments in subsidiaries/joint ventures and RIDF deposits carried at cost.

14. CBLO transactions

Collateralised Borrowing and Lending Obligation (CBLO) is a discounted money market instrument, established by The Clearing Corporation of India Limited (CCIL) and approved by RBI, which involves secured borrowings and lending transactions. At March 31, 2015, the Bank had outstanding borrowings amounting to Nil (March 31,2014: Rs. 11,496.9 million) and outstanding lending amounting to Nil (March 31,2014: Nil) in the form of CBLO. The amortised book value of securities given as collateral by the Bank to CCIL for availing the CBLO facility was Rs. 84,853.6 million at March 31, 2015 (March 31, 2014: Rs. 86,251.8 million).

15. Derivatives

The Bank is a major participant in the financial derivatives market. The Bank deals in derivatives for balance sheet management, proprietary trading and market making purposes whereby the Bank offers derivative products to its customers, enabling them to hedge their risks.

Dealing in derivatives is carried out by identified groups in the treasury of the Bank based on the purpose of the transaction. Derivative transactions are entered into by the treasury front office. Treasury Control and Service Group (TCSG) conducts an independent check of the transactions entered into by the front office and also undertakes activities such as confirmation, settlement, accounting, risk monitoring and reporting and ensures compliance with various internal and regulatory guidelines.

The market making and the proprietary trading activities in derivatives are governed by the Investment policy and Derivative policy of the Bank, which lays down the position limits, stop loss limits as well as other risk limits. The Risk Management Group (RMG) lays down the methodology for computation and monitoring of risk. The Risk Committee of the Board (RCB) reviews the Bank''s risk management policy in relation to various risks including credit and recovery policy, investment policy, derivative policy, Asset Liability Management (ALM) policy and operational risk management policy. The RCB comprises independent directors and the Managing Director and CEO.

The Bank measures and monitors risk of its derivatives portfolio using such risk metrics as Value at Risk (VAR), stop loss limits and relevant greeks for options. Risk reporting on derivatives forms an integral part of the management information system.

The use of derivatives for hedging purposes is governed by the hedge policy approved by Asset Liability Management Committee (ALCO). Subject to prevailing RBI guidelines, the Bank deals in derivatives for hedging fixed rate, floating rate or foreign currency assets/liabilities. Transactions for hedging and market making purposes are recorded separately. For hedge transactions, the Bank identifies the hedged item (asset or liability) at the inception of the hedge itself. The effectiveness is assessed at the time of inception of the hedge and periodically thereafter.

Hedge derivative transactions are accounted for pursuant to the principles of hedge accounting based on guidelines issued by RBI. Derivatives for market making purpose are marked to market and the resulting gain/loss is recorded in the profit and loss account. The premium on option contracts is accounted for as per Foreign Exchange Dealers Association of India (FEDAI) guidelines.

Over the counter (OTC) derivative transactions are covered under International Swaps and Derivatives Association (ISDA) master agreements with the respective counter parties. The exposure on account of derivative transactions is computed as per RBI guidelines.

The net overnight open position at March 31,2015 was Rs. 1,193.1 million (March 31,2014: Rs. 511.7 million).

The Bank has no exposure in credit derivative instruments (funded and non-funded) including credit default swaps (CDS) and principal protected structures at March 31,2015 (March 31,2014: Nil).

The Bank offers deposits to customers of its offshore branches with structured returns linked to interest, forex, credit or equity benchmarks. The Bank covers these exposures in the inter-bank market. At March 31, 2015, the net open notional position on this portfolio was Nil (March 31,2014: Nil) with mark-to-market position of net gain of Rs. 1.4 million (March 31,2014: net gain of Rs. 6.2 million).

The profit and loss impact on the above portfolio on account of mark-to-market and realised profit and loss during the year ended March 31, 2015 was a net loss of Rs. 22.0 million (March 31, 2014: net loss of Rs. 22.0 million). Non- Rupee denominated derivatives are marked to market by the Bank based on counter-party valuation quotes, or internal models using inputs from market sources such as Bloomberg/Reuters, counter-parties and Fixed Income Money Market and Derivative Association (FIMMDA). Rupee denominated credit derivatives are marked to market by the Bank based on FIMMDA published CDS curve.

17. Forward rate agreement (FRA)/Interest rate swaps (IRS)

The Bank enters into FRA and IRS contracts for balance sheet management and market making purposes whereby the Bank offers derivative products to its customers to enable them to hedge their interest rate risk within the prevalent regulatory guidelines.

A FRA is a financial contract between two parties to exchange interest payments for ''notional principal'' amount on settlement date, for a specified period from start date to maturity date. Accordingly, on the settlement date, cash payments based on contract rate and the settlement rate, which is the agreed bench-mark/reference rate prevailing on the settlement date, are made by the parties to one another. The benchmark used in the FRA contracts of the Bank is London Inter-Bank Offered Rate (LIBOR) of various currencies.

An IRS is a financial contract between two parties exchanging or swapping a stream of interest payments for a ''notional principal'' amount on multiple occasions during a specified period. The Bank deals in interest rate benchmarks like Mumbai Inter-Bank Offered Rate (MIBOR), Indian government securities Benchmark rate (INBMK), Mumbai Inter Bank Forward Offer Rate (MIFOR) and LIBOR of various currencies.

These contracts are subject to the risks of changes in market interest rates as well as the settlement risk with the counterparties.

The following table sets forth, for the periods indicated, the details of the forward rate agreements/interest rate swaps.

19. Provision on standard assets

Standard assets provision amounting to Rs. 3,847.9 million was made during the year ended March 31, 2015 (March 31,2014: Rs. 2,487.7 million) as per applicable RBI guidelines.

The provision on standard assets (including incremental provision on unhedged foreign currency exposure (UFCE)) held by the Bank at March 31, 2015 was Rs. 23,336.0 million (March 31,2014: Rs. 19,317.6 million).

The Bank assesses the unhedged foreign currency exposures of the borrowers through its credit appraisal and internal ratings process. The Bank also undertakes reviews of such exposures through thematic reviews by Risk Committee based on market developments evaluating the impact of exchange rate fluctuations on the Bank''s portfolio, portfolio specific reviews by the RMG and scenario-based stress testing approach as detailed in the Internal Capital Adequacy Assessment Process (ICAAP). In addition, a periodic review of the forex exposures of the borrowers'' having significant external commercial borrowings is conducted by RMG.

RBI, through its circular dated January 15, 2014 had advised banks to create incremental provision on standard loans and advances to entities with UFCE. Incremental provision of Rs. 1,750.0 million on standard loans and advances due to UFCE was made during the year.

The Bank held incremental capital of Rs. 4,050.0 million at March 31, 2015 on UFCE.

20. Provision Coverage Ratio

The provision coverage ratio of the Bank at March 31, 2015 computed as per the extant RBI guidelines is 58.6% (March 31,2014: 68.6%).

21. Securitisation

The Bank sells loans through securitisation and direct assignment. The following tables set forth, for the periods indicated, the information on securitisation and direct assignment activity of the Bank as an originator till May 7, 2012.

The outstanding credit enhancement in the form of guarantees amounted to Nil at March 31, 2015 (March 31, 2014: Nil) and outstanding liquidity facility in the form of guarantees amounted to Rs. 265.5 million at March 31, 2015 (March 31,2014: Rs. 261.0 million).

Outstanding credit enhancement in the form of guarantees for third party originated securitisation transactions amounted to Rs. 5,530.3 million at March 31, 2015 (March 31,2014: Rs. 8,578.8 million) and outstanding liquidity facility for third party originated securitisation transactions amounted to Nil at March 31,2015 (March 31,2014: Nil).

22. Financial assets transferred during the year to securitisation company (SC)/reconstruction company (RC)

The Bank has transferred certain assets to Asset Reconstruction Companies (ARCs) in terms of the guidelines issued by RBI circular no. DBOD.BRBC.No.98/21.04.132/2013-14 dated February 26, 2014. For the purpose of the valuation of the underlying security receipts issued by the underlying trusts managed by ARCs, the security receipts are valued at their respective net asset values as advised by the ARCs.

The following table sets forth, for the periods indicated, the details of the assets transferred.

23. Details of non-performing assets purchased/sold, excluding those sold to SC/RC

The Bank has not purchased any non-performing assets in terms of the guidelines issued by RBI circular no. DBOD.BRBC. No.98/21.04.132/2013-14 dated February 26, 2014 during the year ended March 31, 2015. The Bank has sold certain non-performing assets in terms of the above RBI guidelines.

The following table sets forth, for the periods indicated, details of non-performing assets sold, excluding those sold to SC/RC.

During the year ended March 31, 2015, an overseas branch of the Bank has sold a loan for a consideration of Rs. 606.3 million on which the Bank recognised a gain of Rs. 411.5 million (March 31, 2014: Nil).

25. Provision on Funded Interest Term Loan

In 2008, RBI issued guidelines on debt restructuring, which also covered the treatment of funded interest in cases of debt restructuring, that is, instances where interest for a certain period is funded by a Funded Interest Term Loan (FITL) which is then repaid based on a contracted maturity schedule. In line with these guidelines, the Bank has been providing fully for any interest income which is funded through a FITL for cases restructured subsequent to the issuance of the guideline. However, RBI has now required similar treatment of outstanding FITL pertaining to cases restructured prior to the 2008 guidelines which have not yet been repaid. In view of the above, and since this item relates to prior years, the Bank has with the approval of the RBI debited its reserves by Rs. 9,291.6 million to fully provide outstanding FITLs pertaining to restructurings prior to the issuance of the guideline in the quarter ended March 31, 2015 as against over three quarters permitted by RBI. These FITLs relate to pre-2008 restructurings where the borrowers have since been upgraded and this impact would get reversed as FITLs are repaid as per their contractual maturities.

26. Floating provision

The Bank holds floating provision of Rs. 1.9 million at March 31, 2015 (March 31, 2014: Rs. 1.9 million) taken over from erstwhile Bank of Rajasthan on amalgamation.

27. Concentration of Deposits, Advances, Exposures and NPAs

(I) Concentration of deposits, advances, exposures and NPAs

30. Risk category-wise country exposure

As per the extant RBI guidelines, the country exposure of the Bank is categorised into various risk categories listed in the following table. The funded country exposure (net) of the Bank as a percentage of total funded assets for Singapore was 1.31% (March 31, 2014: 1.45%) and USA was 2.53% (March 31, 2014: 0.83%). As the net funded exposure to Singapore and USA exceeds 1.0% of total funded assets, the Bank held a provision of Rs. 345.0 million on country exposure at March 31,2015 (March 31,2014: Rs. 135.0 million) based on RBI guidelines.

The following table sets forth, for the periods indicated, the details of exposure (net) and provision held by the bank.

31. Details of Single Borrower Limit and Borrower Group Limit exceeded by the Bank

During the year ended March 31, 2015 and March 31, 2014, the Bank has complied with the Reserve Bank of India guidelines on single borrower and borrower group limit.

32. Unsecured advances against intangible assets

The Bank has not made advances against intangible collaterals of the borrowers, which are classified as ''unsecured'' in its financial statements at March 31,2015 (March 31,2014: Nil) and the estimated value of the intangible collaterals was Nil at March 31,2015 (March 31,2014: Nil).

34. Description of contingent liabilities

The following table describes the nature of contingent liabilities of the Bank.

1. Claims against the Bank, not acknowledged as debts

This item represents demands made in certain tax and legal matters against the Bank in the normal course of business and customer claims arising in fraud cases. In accordance with the Bank''s accounting policy and AS - 29, the Bank has reviewed and classified these items as possible obligations based on legal opinion/judicial precedents/assessment by the Bank.

2. Liability for partly paid investments

This item represents amounts remaining unpaid towards liability for partly paid investments. These payment obligations of the Bank do not have any profit/loss impact.

3. Liability on account of outstanding forward

exchange contracts

The Bank enters into foreign exchange contracts in the normal course of its business, to exchange currencies at a pre-fixed price at a future date. This item represents the notional principal amount of such contracts, which are derivative instruments. With respect to the transactions entered into with its customers, the Bank generally enters into off-setting transactions in the inter-bank market. This results in generation of a higher number of outstanding transactions, and hence a large value of gross notional principal of the portfolio, while the net market risk is lower.

4. Guarantees given on behalf of constituents, acceptances, endorsements and other obligations

This item represents the guarantees and documentary credits issued by the Bank in favour of third parties on behalf of its customers, as part of its trade finance banking activities with a view to augment the customers'' credit standing. Through these instruments, the Bank undertakes to make payments for its customers'' obligations, either directly or in case the customer fails to fulfill their financial or performance obligations.

5. Currency swaps, interest rate swaps, currency options and interest rate futures

This item represents the notional principal amount of various derivative instruments which the Bank undertakes in its normal course of business. The Bank offers these products to its customers to enable them to transfer, modify or reduce their foreign exchange and interest rate risks. The Bank also undertakes these contracts to manage its own interest rate and foreign exchange positions. With respect to the transactions entered into with its customers, the Bank generally enters into off-setting transactions in the inter-bank market. This results in generation of a higher number of outstanding transactions, and hence a large value of gross notional principal of the portfolio, while the net market risk is lower.

6. Other items for which the Bank is contingently liable

Other items for which the Bank is contingently liable primarily include the amount of Government securities bought/sold and remaining to be settled on the date of financial statements. This also includes the value of sell down options and other facilities pertaining to securitisation, the notional principal amounts of credit derivatives, amount applied in public offers under Application Supported by Blocked Amounts (ASBA), bill re-discounting, amount transferred to the RBI under the Depositor Education and Awareness Fund (DEAF), commitment towards contribution to venture fund and the amount that the Bank is obligated to pay under capital contracts. Capital contracts are job orders of a capital nature which have

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The Bank has assessed its obligations arising in the normal course of business, including pending litigations, proceedings pending with tax authorities and other contracts including derivative and long term contracts. In accordance with the provisions of Accounting Standard - 29 on ''Provisions, Contingent Liabilities and Contingent Assets'', the Bank recognises a provision for material foreseeable losses when it has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. In cases where the available information indicates that the loss on the contingency is reasonably possible but the amount of loss cannot be reasonably estimated, a disclosure to this effect is made as contingent liabilities in the financial statements. The Bank does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

39. Details of amount transferred to The Depositor Education and Awareness Fund (the Fund) of RBI

The following table sets forth, for the period indicated, the movement in amount transferred to the Fund.

40. Provisions for income tax

The provision for income tax (including deferred tax) for the year ended March 31,2015 amounted to Rs. 46,395.7 million (March 31,2014: Rs. 41,526.7 million).

The Bank has a comprehensive system of maintenance of information and documents required by transfer pricing legislation under section 92-92F of the Income-tax Act, 1961. The Bank is of the opinion that all transactions with international related parties and specified transactions with domestic related parties are primarily at arm''s length so that the above legislation does not have material impact on the financial statements.

41. Deferred tax

At March 31, 2015, the Bank has recorded net deferred tax asset of Rs. 14,480.0 million (March 31, 2014: Rs. 7,468.6 million), which has been included in other assets.

The following table sets forth, for the periods indicated, the break-up of deferred tax assets and liabilities into major items.

42. Dividend distribution tax

Dividend received from Indian subsidiaries, on which dividend distribution tax has been paid by them and dividend received from offshore subsidiaries, on which tax has been paid under section 115BBD of the Income Tax Act, 1961, has been reduced from dividend to be distributed by the Bank for the purpose of computation of dividend distribution tax as per section 115-O of the Income Tax Act, 1961.

43. Related Party Transactions

The Bank has transactions with its related parties comprising subsidiaries, associates/joint ventures/other related entities, key management personnel and relatives of key management personnel.

Subsidiaries

I CICI Bank UK PLC, ICICI Bank Canada, ICICI Prudential Life Insurance Company Limited, ICICI Lombard General Insurance Company Limited, ICICI Prudential Asset Management Company Limited, ICICI Securities Limited, ICICI Securities Primary Dealership Limited, ICICI Home Finance Company Limited, ICICI Venture Funds Management Company Limited, ICICI International Limited, ICICI Trusteeship Services Limited, ICICI Investment Management Company Limited, ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Prudential Trust Limited and ICICI Prudential Pension Funds Management Company Limited.

Associates/joint ventures/other related entities

ICICI Equity Fund1, ICICI Strategic Investments Fund1, FINO PayTech Limited, I-Process Services (India) Private Limited, NIIT Institute of Finance, Banking and Insurance Training Limited, Comm Trade Services Limited, ICICI Foundation for Inclusive Growth, I-Ven Biotech Limited1, ICICI Merchant Services Private Limited, India Infradebt Limited, India Advantage Fund-III and India Advantage Fund-IV.

1. Entities consolidated as per A ccounting Standard (AS) 21 on ''Consolidated Financial Statements''.

I ndia Advantage Fund-III has been identified as a related party during the three months ended June 30, 2014. India Advantage Fund-IV has been identified as a related party during the three months ended September 30, 2014. TCW/ ICICI Investment Partners Limited and ICICI Venture Value Fund ceased to be related parties from the three months ended September 30, 2013 and December 31, 2013 respectively. ICICI Emerging Sectors Fund, ICICI Eco-net Internet and Technology Fund and Rainbow Fund ceased to be related parties from the three months ended March 31,2014. Mewar Aanchalik Gramin Bank, ICICI Kinfra Limited and ICICI Bank Eurasia Limited Liability Company ceased to be related parties from the three months ended June 30, 2014, December 31,2014 and March 31,2015 respectively.

Key management personnel

Ms. Chanda Kochhar, Mr. N. S. Kannan, Mr. K. Ramkumar, Mr. Rajiv Sabharwal.

Relatives of key management personnel

Mr. Deepak Kochhar, Mr. Arjun Kochhar, Ms. Aarti Kochhar, Mr. Mahesh Advani, Ms. Rangarajan Kumudalakshmi, Ms. Aditi Kannan, Ms. Narayanan Sudha, Mr. Narayanan Raghunathan, Mr. Narayanan Rangarajan, Mr. R. Shyam, Ms. R. Suchithra, Mr. K. Jayakumar, Mr. R. Krishnaswamy, Ms. J. Krishnaswamy, Ms. Pushpa Muralidharan, Ms. Sangeeta Sabharwal, Mr. Kartik Sabharwal, Mr. Arnav Sabharwal.

The following were the significant transactions between the Bank and its related parties for the year ended March 31, 2015. A specific related party transaction is disclosed as a material related party transaction wherever it exceeds 10% of all related party transactions in that category.

Insurance services

During the year ended March 31, 2015, the Bank paid insurance premium to insurance subsidiaries amounting to Rs. 1,200.5 million (March 31,2014: Rs. 1,072.6 million). The material transactions for the year ended March 31,2015 were payment of insurance premium to ICICI Lombard General Insurance Company Limited amounting to Rs. 1,070.1 million (March 31,2014: Rs. 978.5 million) and to ICICI Prudential Life Insurance Company Limited amounting to Rs. 130.4 million (March 31,2014: Rs. 94.1 million).

During the year ended March 31, 2015, the Bank''s insurance claims (including the claims received by the Bank on behalf of key management personnel) from the insurance subsidiaries amounted to Rs. 245.0 million (March 31,2014: Rs. 396.6 million). The material transactions for the year ended March 31, 2015 were with ICICI Lombard General Insurance Company Limited amounting to Rs. 158.5 million (March 31,2014: Rs. 326.7 million) and with ICICI Prudential Life Insurance Company Limited amounting to Rs. 86.5 million (March 31,2014: Rs. 69.9 million).

Fees and commission income

During the year ended March 31, 2015, the Bank received fees from its subsidiaries amounting to Rs. 7,761.4 million (March 31,2014: Rs. 5,880.4 million), from its associates/joint ventures/other related entities amounting to Rs. 10.0 million (March 31,2014: Rs. 9.7 million), from key management personnel amounting to Rs. 0.3 million (March 31,2014: Nil) and from relatives of key management personnel amounting to Nil (March 31,2014: Rs. 0.1 million). The material transactions for the year ended March 31, 2015 were with ICICI Prudential Life Insurance Company Limited amounting to Rs. 6,409.8 million (March 31,2014: Rs. 4,876.0 million) and with ICICI Lombard General Insurance Company Limited amounting to Rs. 746.9 million (March 31, 2014: Rs. 597.9 million).

During the year ended March 31, 2015, the Bank received commission on bank guarantees from its subsidiaries amounting to Rs. 46.2 million (March 31, 2014: Rs. 48.1 million). The material transactions for the year ended March 31,2015 were with ICICI Bank UK PLC amounting to Rs. 44.4 million (March 31,2014: Rs. 39.1 million) and with ICICI Bank Eurasia Limited Liability Company amounting to Nil (March 31,2014: Rs. 7.7 million).

Lease of premises, common corporate and facilities expenses

During the year ended March 31, 2015, the Bank recovered from its subsidiaries an amount of Rs. 1,253.3 million (March 31,2014: Rs. 1,257.9 million) and from its associates/joint ventures/other related entities an amount of Rs. 57.5 million (March 31,2014: Rs. 72.3 million). The material transactions for the year ended March 31,2015 were with ICICI Home Finance Company Limited amounting to Rs. 312.1 million (March 31, 2014: Rs. 276.1 million), ICICI Securities Limited amounting to Rs. 262.6 million (March 31, 2014: Rs. 288.4 million), ICICI Prudential Life Insurance Company Limited amounting to Rs. 206.6 million (March 31, 2014: Rs. 224.2 million), ICICI Lombard General Insurance Company Limited amounting to Rs. 187.1 million (March 31,2014: Rs. 159.7 million) and with ICICI Bank UK PLC amounting to Rs. 175.2 million (March 31,2014: Rs. 180.8 million).

Secondment of employees

During the year ended March 31, 2015, the Bank recovered towards deputation of employees from its subsidiaries an amount of Rs. 56.4 million (March 31, 2014: Rs. 71.5 million) and from its associates/joint ventures/other related entities an amount of Rs. 7.1 million (March 31,2014: Rs. 6.6 million). The material transactions for the year ended March 31,2015 were with ICICI Investment Management Company Limited amounting to Rs. 40.0 million (March 31, 2014: Rs. 38.9 million), ICICI Securities Limited amounting to Rs. 11.2 million (March 31,2014: Rs. 15.4 million), I-Process Services (India) Private Limited amounting to Rs. 7.1 million (March 31, 2014: Rs. 6.6 million) and with ICICI Prudential Life Insurance Company Limited amounting to Rs. 5.2 million (March 31,2014: Rs. 16.1 million).

Purchase of investments

During the year ended March 31, 2015, the Bank purchased certain investments from its subsidiaries amounting to Rs. 9,931.6 million (March 31, 2014: Rs. 10,087.0 million). The material transactions for the year ended March 31, 2015 were with ICICI Securities Primary Dealership Limited amounting to Rs. 5,886.8 million (March 31, 2014: Rs. 7,189.3 million) and with ICICI Prudential Life Insurance Company Limited amounting to Rs. 2,877.9 million (March 31, 2014: Rs. 2,448.4 million).

During the year ended March 31, 2015, the Bank invested in the units of India Advantage Fund-III amounting to Rs. 499.1 million and in the units of India Advantage Fund-IV amounting to Rs. 417.9 million.

Sale of investments

During the year ended March 31, 2015, the Bank sold certain investments to its subsidiaries amounting to Rs. 5,311.6 million (March 31, 2014: Rs. 9,061.8 million) and to its associates/joint ventures/other related entities amounting to Nil (March 31, 2014: Rs. 147.8 million). The material transactions for the year ended March 31, 2015 were with ICICI

Securities Primary Dealership Limited amounting to Rs. 3,408.0 million (March 31,2014: Rs. 1,649.4 million), ICICI Lombard General Insurance Company Limited amounting to Rs. 928.6 million (March 31, 2014: Rs. 2,497.8 million) and with ICICI Prudential Life Insurance Company Limited amounting to Rs. 902.2 million (March 31, 2014: Rs. 4,898.3 million).

Investment in Certificate of Deposits (CDs)/bonds issued by ICICI Bank

During the year ended March 31, 2015, subsidiaries have invested in CDs/bonds issued by the Bank amounting to Rs. 3,210.0 million (March 31, 2014: Nil). The material transactions for the year ended March 31, 2015 were with ICICI Prudential Life Insurance Company Limited amounting to Rs. 2,000.0 million (March 31, 2014: Nil) and with ICICI Securities Primary Dealership Limited amounting to Rs. 1,210.0 million (March 31,2014: Nil).

Redemption/buyback of investments

During the year ended March 31,2015, the Bank received Rs. 4,687.5 million (equivalent to USD 75.0 million) (March 31, 2014: Nil) from ICICI Bank UK PLC on account of buyback of equity shares and Nil [March 31,2014: Rs. 2,995.8 million (equivalent to USD 50.0 million)] on account of redemption of bonds by ICICI Bank UK PLC.

During the year ended March 31, 2015, the Bank received Rs. 3,922.6 million (equivalent to CAD 80.0 million) [March 31,2014: Rs. 4,070.4 million (equivalent to CAD 75.0 million)] from ICICI Bank Canada on account of buyback of equity shares by ICICI Bank Canada.

During the year ended March 31, 2015, the Bank received Rs. 118.0 million (March 31,2014: NA) from India Advantage Fund-III, Rs. 74.4 million (March 31,2014: Nil) from ICICI Equity Fund and Rs. 21.6 million (March 31,2014: NA) from India Advantage Fund-IV on account of redemption of units and distribution of gain/loss on units.

During the year ended March 31,2014, the Bank received Rs. 358.0 million from ICICI Emerging Sectors Fund and Rs. 126.7 million from ICICI Eco-net Internet and Technology Fund on account of redemption of units and distribution of gain/loss on units.

Reimbursement of expenses to subsidiaries

During the year ended March 31,2015, the Bank reimbursed expenses to its subsidiaries amounting to Rs. 60.4 million (March 31,2014: Rs. 46.6 million). The material transactions for the year ended March 31,2015 were with ICICI Bank UK PLC amounting to Rs. 57.4 million (March 31,2014: Rs. 33.7 million) and with ICICI Bank Canada amounting to Rs. 3.0 million (March 31,2014: Rs. 12.9 million).

Reimbursement of expenses to the Bank

During the year ended March 31, 2015, subsidiaries reimbursed expenses to the Bank amounting to Rs. 5.8 million (March 31, 2014: Rs. 19.9 million). The material transactions for the year ended March 31, 2015 were with ICICI Bank Canada amounting to Rs. 4.7 million (March 31,2014: Rs. 5.2 million) and with ICICI Bank UK PLC amounting to Rs. 1.1 million (March 31,2014: Rs. 14.7 million).

Brokerage, fees and other expenses

During the year ended March 31,2015, the Bank paid brokerage, fees and other expenses to its subsidiaries amounting to Rs. 833.1 million (March 31,2014: Rs. 671.8 million) and to its associates/joint ventures/other related entities amounting to Rs. 4,645.1 million (March 31,2014: Rs. 3,179.4 million). The material transactions for the year ended March 31,2015 were with I-Process Services (India) Private Limited amounting to Rs. 2,362.7 million (March 31, 2014: Rs. 1,664.2 million), ICICI Merchant Services Private Limited amounting to Rs. 2,216.0 million (March 31, 2014: Rs. 1,353.3 million) and with ICICI Home Finance Company Limited amounting to Rs. 662.1 million (March 31, 2014: Rs. 549.8 million).

Income on custodial services

During the year ended March 31, 2015, the Bank recovered custodial charges from its subsidiaries amounting to Rs. 11.8 million (March 31, 2014: Rs. 3.7 million) and from its associates/joint ventures/other related entities amounting to Rs. 1.5 million (March 31,2014: Rs. 0.5 million). The material transactions for the year ended March 31,2015 were with ICICI Prudential Asset Management Company Limited amounting to Rs. 7.3 million (March 31, 2014: Nil) and with ICICI Securities Primary Dealership Limited amounting to Rs. 4.5 million (March 31,2014: Rs. 3.6 million).

Interest expenses

During the year ended March 31, 2015, the Bank paid interest to its subsidiaries amounting to Rs. 614.2 million (March 31, 2014: Rs. 350.8 million), to its associates/joint ventures other related entities amounting to Rs. 257.9 million (March 31, 2014: Rs. 353.8 million), to its key management personnel amounting to Rs. 6.2 million (March 31, 2014: Rs. 4.2 million) and to relatives of key management personnel amounting to Rs. 2.3 million (March 31,2014: Rs. 1.7 million). The material transactions for the year ended March 31,2015 were with ICICI Securities Limited amounting to Rs. 373.3 million (March 31, 2014: Rs. 284.2 million), India Infradebt Limited amounting to Rs. 232.0 million (March 31, 2014: Rs. 268.6 million) and with ICICI Prudential Life Insurance Company Limited amounting to Rs. 185.7 million (March 31,2014: Rs. 19.9 million).

Interest income

During the year ended March 31, 2015, the Bank received interest from its subsidiaries amounting to Rs. 1,407.6 million (March 31, 2014: Rs. 1,687.9 million), from its associates/joint ventures/other related entities amounting to Rs. 48.2 million (March 31, 2014: Rs. 55.8 million), from its key management personnel amounting to Rs. 1.0 million (March 31, 2014: Rs. 0.9 million) and from relatives of key management personnel amounting to Rs. 1.5 million (March 31, 2014: Rs. 0.5 million). The material transactions for the year ended March 31, 2015 were with ICICI Home Finance Company Limited amounting to Rs. 942.1 million (March 31,2014: Rs. 1,151.0 million), ICICI Venture Funds Management Company Limited amounting to Rs. 167.3 million (March 31,2014: Nil) and with ICICI Bank Canada amounting to Rs. 160.4 million (March 31,2014: Rs. 168.9 million).

Other income

The Bank undertakes derivative transactions with its subsidiaries, associates, joint ventures and other related entities. The Bank manages its foreign exchange and interest rate risks arising from these transactions by covering them in the market. During the year ended March 31,2015, the net gain of the Bank on forex and derivative transactions entered with subsidiaries was Rs. 1,887.3 million (March 31,2014: net loss of Rs. 743.7 million). The material transactions for the year ended March 31,2015 were gain of Rs. 1,803.5 million (March 31,2014: loss of Rs. 1,168.4 million) with ICICI Bank UK PLC, gain of Rs. 383.0 million (March 31,2014: gain of Rs. 266.6 million) with ICICI Bank Canada, loss of Rs. 184.7 million (March 31,2014: gain of Rs. 237.8 million) with ICICI Home Finance Company Limited and loss of Rs. 144.0 million (March 31,2014: loss of Rs. 108.2 million) with ICICI Securities Primary Dealership Limited.

While the Bank within its overall position limits covers these transactions in the market, the above amounts represent only the transactions with its subsidiaries, associates, joint ventures and other related entities and not the offsetting/ covering transactions.

Dividend income

During the year ended March 31,2015, the Bank received dividend from its subsidiaries amounting to Rs. 15,590.6 million (March 31, 2014: Rs. 12,956.2 million). The material transactions for the year ended March 31, 2015 were with ICICI Prudential Life Insurance Company Limited amounting to Rs. 6,173.6 million (March 31, 2014: Rs. 6,901.7 million), ICICI Bank UK PLC amounting to Rs. 1,870.1 million (March 31, 2014: Rs. 1,536.9 million), ICICI Securities Limited amounting to Rs. 1,860.8 million (March 31,2014: Rs. 150.1 million), ICICI Home Finance Company Limited amounting to Rs. 1,607.5 million (March 31,2014: Rs. 1,137.2 million), ICICI Securities Primary Dealership Limited amounting to Rs. 1,590.8 million (March 31,2014: Rs. 179.8 million) and with ICICI Bank Canada amounting to Rs. 1,249.0 million (March 31,2014: Rs. 2,859.5 million).

Dividend paid

During the year ended March 31, 2015, the Bank paid dividend to its key management personnel amounting to Rs. 10.0 million (March 31,2014: Rs. 8.1 million). The dividend paid during the year ended March 31,2015 to Ms. Chanda Kochhar was Rs. 7.9 million (March 31, 2014: Rs. 6.6 million), Mr. N. S. Kannan was Rs. 1.1 million (March 31, 2014: Rs. 1.5 million) and to Mr. Rajiv Sabharwal was Rs. 1.0 million (March 31,2014: Nil).

Remuneration to whole-time directors

Remuneration paid to the whole-time directors of the Bank, excluding the perquisite value on account of employee stock options exercised, during the year ended March 31,2015 was Rs. 164.5 million (March 31,2014: Rs. 144.5 million). The remuneration paid for the year ended March 31,2015 to Ms. Chanda Kochhar was Rs. 53.5 million (March 31,2014: Rs. 47.7 million), to Mr. N. S. Kannan was Rs. 37.4 million (March 31,2014: Rs. 32.4 million), to Mr. K. Ramkumar was Rs. 38.6 million (March 31, 2014: Rs. 34.5 million) and to Mr. Rajiv Sabharwal was Rs. 35.0 million (March 31, 2014: Rs. 29.9 million).

Sale of fixed assets

During the year ended March 31, 2015, the Bank sold fixed assets to its subsidiaries amounting to Rs. 0.7 million (March 31,2014: Rs. 2.6 million) and to its associates/joint ventures/other related entities amounting to Nil (March 31,2014: Rs. 2.7 million). The material transactions for the year ended March 31,2015 were with ICICI Venture Management Fund Limited amounting to Rs. 0.7 million (March 31, 2014: Nil), India Infradebt Limited amounting to Nil (March 31, 2014: Rs. 2.7 million) and with ICICI Prudential Life Insurance Company Limited amounting to Nil (March 31,2014: Rs. 2.2 million).

Purchase of fixed assets

During the year ended March 31,2015, the Bank purchased fixed assets from ICICI Prudential Life Insurance Company Limited amounting to Rs. 23.0 million (March 31,2014: Rs. 4.2 million).

Donation

During the year ended March 31,2015, the Bank has given donation to ICICI Foundation for Inclusive Growth amounting to Rs. 260.0 million (March 31, 2014: Rs. 125.0 million).

Purchase of loan

During the year ended March 31,2015, the Bank purchased loans from ICICI Bank Eurasia Limited Liability Company amounting to Rs. 1,138.1 million (March 31, 2014: Nil) and from ICICI Bank UK PLC amounting to Nil (March 31,2014: Rs. 3,820.4 million).

Sale of loan

During the year ended March 31,2015, the Bank sold loan (including undisbursed loan commitment) to ICICI Bank UK PLC amounting to Nil (March 31,2014: Rs. 2,696.2 million).

Risk participation

During the year ended March 31, 2015, the Bank has entered into funded risk participation with ICICI Bank UK PLC amounting to Rs. 4,101.6 million and entered into unfunded risk participation with ICICI Bank Canada amounting to Rs. 312.5 million.

Purchase of bank guarantees

Bank guarantees issued by ICICI Bank UK PLC on behalf of its clients amounting to Rs. 1,329.4 million were transferred to the Bank during the year ended March 31,2015 (March 31,2014: Nil).

Letters of Comfort

The Bank has issued letters of comfort on behalf of its banking subsidiaries. The details of the letters are given below.-

The Bank has issued an undertaking on behalf of ICICI Securities Inc. for Singapore dollar 10.0 million (currently equivalent to Rs. 454.8 million) to the Monetary Authority of Singapore (MAS) and has executed indemnity agreement on behalf of ICICI Bank Canada to its independent directors for a sum not exceeding Canadian dollar 2.5 million (currently equivalent to Rs. 122.6 million) each, aggregating to Canadian dollar 17.5 million (currently equivalent to Rs. 858.1 million). The aggregate amount of Rs. 1,312.9 million at March 31, 2015 (March 31, 2014: Rs. 2,564.0 million) is included in the contingent liabilities.

During the year ended March 31, 2015, an undertaking furnished on behalf of ICICI Bank Eurasia Limited Liability Company for an amount of USD 19.0 million, had expired on account of repayment of its loan.

In addition to the above, the Bank had also issued letters of comfort in the nature of letters of awareness on behalf of its subsidiaries in respect of their borrowings made or proposed to be made and for other incidental business purposes. As they are in the nature of factual statements or confirmation of facts, they do not create any financial impact on the Bank.

The letters of comfort in the nature of letters of awareness that are outstanding at March 31, 2015 issued by the Bank on behalf of its subsidiaries, aggregate to Rs. 12,748.0 million (March 31,2014: Rs. 14,530.2 million). During the year ended March 31,2015, borrowings pertaining to letters of comfort aggregating Rs. 1,782.2 million were repaid.

Related party balances

The following table sets forth, the balance payable to/receivable from subsidiaries/joint ventures/associates/other related entities/key management personnel and relatives of key management personnel at March 31,2015.

44. Small and micro enterprises

Under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which came into force from October 2, 2006, certain disclosures are required to be made relating to enterprises covered under the Act. During the year ended March 31,2015, the amount paid after the due date to vendors registered under the MSMED Act, 2006 was Rs. 4.7 million (March 31,2014: Rs. 0.9 million). An amount of Rs. 0.06 million (March 31,2014: Rs. 0.01 million) has been charged to profit & loss account towards accrual of interest on these delayed payments.

45. Penalties/fines imposed by RBI and other banking regulatory bodies

The penalty imposed by RBI and other banking regulatory bodies during the year ended March 31, 2015 was Rs. 10.4 million (March 31,2014: Rs. 10.0 million).

On December 17, 2014, RBI imposed a penalty of Rs. 5.0 million on the Bank in exercise of powers vested with it under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 for charges of non-compliance with the directions/guidelines issued by RBI in connection with Know Your Customer (KYC)/Anti Money Laundering (AML). The Bank has paid the penalty to RBI.

On July 25, 2014, RBI imposed a penalty of Rs. 4.0 million on the Bank, in exercise of the powers vested with it under the provisions of Section 47A (1) of the Banking Regulation Act, 1949 with respect to facilities extended to a corporate borrower by the Bank. The Bank has paid the penalty to RBI.

A penalty of Rs. 1.4 million was imposed on the Bank in February 2015 by the Financial Intelligence Unit, India (FIU-IND). The Bank has filed an appeal against the penalty, which was imposed for failure in reporting of the attempted suspicious transactions.

46. Disclosure on Remuneration

Compensation policy and practices

(A) Qualitative disclosures

a) Information relating to the composition and mandate of the Remuneration Committee

The Board Governance, Remuneration & Nomination Committee (BGRNC) at March 31,2015 comprised three independent Directors. The functions of the Committee include recommendation of appointments of Directors to the Board, evaluation of the performance of the Whole Time Directors (WTDs) (including the Managing Director & CEO) on predetermined parameters, recommendation to the Board of the remuneration (including performance bonus and perquisites) to Whole Time Directors, approval of the policy for and quantum of bonus payable to the members of the staff, framing of guidelines for the Employees Stock Option Scheme (ESOS) and recommendation of grant of the Bank''s stock options to employees and Whole Time Directors of the Bank and its subsidiary companies.

b) Information relating to design and structure of remuneration processes and the key features and objectives of remuneration policy

The Bank has under the guidance of the Board and the BGRNC, followed compensation practices intended to drive meritocracy within the framework of prudent risk management. This approach has been incorporated in the Compensation Policy approved by the Board on January 31,2012, pursuant to the guidelines issued by RBI.

The key elements of the Bank''s compensation practices are:

- Effective governance of compensation: The BGRNC has oversight over compensation. The Committee defines Key Performance Indicators (KPIs) for Whole Time Directors and equivalent positions and the organisational performance norms for bonus based on the financial and strategic plan approved by the Board. The KPIs include both quantitative and qualitative aspects. The BGRNC assesses organisational performance as well as the individual performance for Whole Time Directors and equivalent positions. Based on its assessment, it makes recommendations to the Board regarding compensation for Whole Time Directors and equivalent positions and bonus for employees.

- Alignment of compensation philosophy with prudent risk taking: The Bank seeks to achieve a prudent mix of fixed and variable pay, with a higher proportion of variable pay at senior levels and no guaranteed bonuses. Compensation is sought to be aligned to both financial and non-financial indicators of performance including aspects like risk management and customer service. In addition, the Bank has an employee stock option scheme aimed at aligning compensation to long term performance through stock option grants that vest over a period of time. Compensation of staff in financial and risk control functions is independent of the business areas they oversee and depends on their performance assessment.

c) Description of the ways in which current and future risks are taken into account in the remuneration processes including the nature and type of the key measures used to take account of these risks.

The Board approves the risk framework for the Bank and the business activities of the Bank are undertaken within this framework to achieve the financial plan. The risk framework includes the Bank''s risk appetite, limits framework and policies a


Mar 31, 2013

OVERVIEW

ICICI Bank Limited (ICICI Bank or the Bank), incorporated in Vadodara, India is a publicly held banking company engaged in providing a wide range of banking and financial services including commercial banking and treasury operations. ICICI Bank is a banking company governed by the Banking Regulation Act, 1949. The Bank also has overseas branches in Bahrain, Dubai, Hong Kong, Qatar, Sri Lanka, Singapore, United States of America and Offshore Banking Unit.

Basis of preparation

The financial statements have been prepared in accordance with requirements prescribed under the Third Schedule of the Banking Regulation Act, 1949. The accounting and reporting policies of ICICI Bank used in the preparation of these financial statements conform to Generally Accepted Accounting Principles in India (Indian GAAP), the guidelines issued by Reserve Bank of India (RBI) from time to time, the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies (Accounting Standards) Rules, 2006 to the extent applicable and practices generally prevalent in the banking industry in India. The Bank follows the historical cost convention and the accrual method of accounting, except in the case of interest income on non-performing assets (NPAs) where it is recognised upon realisation.

The preparation of financial statements requires the management to make estimates and assumptions that are considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

The following additional disclosures have been made taking into account the requirements of Accounting Standards (ASs) and Reserve Bank of India (RBI) guidelines in this regard.

1. Earnings per share

Basic and diluted earnings per equity share are computed in accordance with AS 20-Earnings per share. Basic earnings per equity share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. The diluted earnings per equity share is computed using the weighted average number of equity shares and weighted average number of dilutive potential equity shares outstanding during the year.

1. For the purpose of computing the ratio, working funds represent the monthly average of total assets as reported in Form X to RBI under Section 27 of the Banking Regulation Act, 1949.

2. For the purpose of computing the ratio, assets represent monthly average of total assets as reported in Form X to RBI under Section 27 of the Banking Regulation Act, 1949.

3. The number of employees includes sales executives, employees on fixed term contracts and interns.

4. The average deposits and the average advances represent the simple average of the figures reported in Form A to RBI under Section 42(2) of the Reserve Bank of India Act, 1934.

3. Capital adequacy ratio

The Bank is subject to the Basel II capital adequacy guidelines stipulated by RBI with effect from March 31, 2008. The RBI guidelines on Basel II require the Bank to maintain a minimum capital to risk-weighted assets ratio (CRAR) of 9.0% and a minimum Tier I CRAR of 6.0% on an ongoing basis.

RBI has also stipulated that banks shall maintain capital at higher of the minimum capital required as per Basel II or 80% of the minimum capital requirement under Basel I. At March 31, 2013, the prudential floor at 80% of the minimum capital requirement under Basel I was Rs. 359,052.2 million and was lower than the minimum capital requirement of Rs. 397,749.2 million under Basel II. Hence, the Bank has maintained capital adequacy at March 31, 2013 as per the Basel II norms.

4. Information about business and geographical segments Business Segments

Pursuant to the guidelines issued by RBI on Accounting Standard 17-(Segment Reporting)- Enhancement of Disclosures dated April 18, 2007, effective from year ended March 31, 2008, the following business segments have been reported.

- 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".

- Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, which are not included under Retail Banking.

- Treasury includes the entire investment and derivative portfolio of the Bank.

- other Banking includes leasing operations and other items not attributable to any particular business segment.

Income, expenses, assets and liabilities are either specifically identified with individual segments or are allocated to segments on a systematic basis.

All liabilities are transfer priced to a central treasury unit, which pools all funds and lends to the business units at appropriate rates based on the relevant maturity of assets being funded after adjusting for regulatory reserve requirements.

The transfer pricing mechanism of the Bank is periodically reviewed. The segment results are determined based on the transfer pricing mechanism prevailing for the respective reporting periods.

5. Maturity pattern

- In compiling the information of maturity pattern, certain estimates and assumptions have been made by the management.

- Assets and liabilities in foreign currency exclude off-balance sheet assets and liabilities.

6. Preference shares

Certain government securities amounting to Rs. 2,749.9 million at March 31, 2013 (March 31, 2012: Rs. 2,578.1 million) have been earmarked against redemption of preference shares issued by the Bank, which fall due for redemption on April 20, 2018, as per the original issue terms.

7. Employee Stock option Scheme (ESoS)

In terms of the ESOS, as amended, the maximum number of options granted to any eligible employee in a financial year shall not exceed 0.05% of the issued equity shares of the Bank at the time of grant of the options and aggregate of all such options granted to the eligible employees shall not exceed 10% of the aggregate number of the issued equity shares of the Bank on the date(s) of the grant of options. Under the stock option scheme, eligible employees are entitled to apply for equity shares. Options granted for fiscal 2003 vest in a graded manner over a three-year period, with 20%, 30% and 50% of the grants vesting in each year commencing from the end of 12 months from the date of grant. Options granted from fiscal 2004 vest in a graded manner over a four-year period, with 20%, 20%, 30% and 30% of the grants vesting in each year commencing from the end of 12 months from the date of grant. Options granted in April 2009 vest in a graded manner over a five year period with 20%, 20%, 30% and 30% of grant vesting each year, commencing from the end of 24 months from the date of grant. Options granted in September, 2011 vest in a graded manner over a five years period with 15%, 20%, 20% and 45% of grant vesting each year, commencing from the end of 24 months from the date of the grant. The options can be exercised within 10 years from the date of grant or five years from the date of vesting, whichever is later. The exercise price of Bank''s options was the last closing price on the stock exchange, which recorded highest trading volume preceding the date of grant of options. Hence, there was no compensation cost based on intrinsic value of options.

In February, 2011, the Bank granted 3,035,000 options to eligible employees and whole-time Directors of ICICI Bank and certain of its subsidiaries at an exercise price of Rs. 967. Of these options granted, 50% would vest on April 30, 2014 and the balance 50% would vest on April 30, 2015. The options can be exercised within 10 years from the date of grant or five years from the date of vesting, whichever is later. Based on intrinsic value of options, compensation cost of Rs. 21.0 million was recognised during the year ended March 31, 2013 (March 31, 2012: Rs. 21.0 million).

If ICICI Bank had used the fair value of options based on binomial tree model, compensation cost in the year ended March 31, 2013 would have been higher by Rs. 1,865.9 million and proforma profit after tax would have been Rs. 81.39 billion. On a proforma basis, ICICI Bank''s basic and diluted earnings per share would have been Rs. 70.58 and Rs. 70.32 respectively. The key assumptions used to estimate the fair value of options granted during the year ended March 31, 2013 are given below.

The options were exercised regularly throughout the period and weighted average share price as per NSE price volume data during the year ended March 31, 2013 was Rs. 1,000.21 (March 31, 2012: Rs. 922.76).

8. Subordinated debt

During the year ended March 31, 2013, the Bank raised subordinated debt qualifying for Tier II capital amounting to Rs. 38,000.0 million. The following table sets forth, the details of these bonds.

1. Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.

2. Collateralised debt obligations securities have been included in the above data based on the arranger of such instruments.

3. Includes Rs. 2,619.0 million of application money towards corporate bonds/debentures.

4. Excludes investments amounting to Rs. 7,086.1 million, in preference shares of subsidiaries and Rs. 5,092.1 million in subordinated bonds of subsidiaries, namely ICICI Bank UK PLC and ICICI Bank Canada.

5. Excludes equity shares, units of equity-oriented mutual fund, units of venture capital fund, pass through certificates, security receipts, commercial papers, certificates of deposit, unlisted convertible debentures and securities acquired by way of conversion of debt.

6. Other investments include deposits under RIDF/RHDF deposit schemes amounting to Rs. 181,025.1 million.

7. Excludes investments in non-Indian government securities by overseas branches amounting to Rs. 4,402.4 million.

8. Others include non-SLR Indian government securities of Rs. 96.1 million.

9. Sales and transfers of securities to/from Held to Maturity (HTM) category

During the year ended March 31, 2013, the value of sales and transfers of securities to/from HTM category (excluding one time transfer of securities to/from HTM category with the approval of Board of Directors permitted to be undertaken by banks at the beginning of the accounting year and sale to RBI under pre-announced Open Market Operation auctions) have not exceeded 5% of the book value of the investments held in HTM category at the beginning of the year.

10. CBLO transaction

Collateralised Borrowing and Lending Obligation (CBLO) is a discounted money market instrument, developed by The Clearing Corporation of India Limited (CCIL) and approved by RBI, which involves secured borrowings and lending transactions. At March 31, 2013, the Bank had outstanding borrowings amounting to Nil (March 31, 2012: Nil) and outstanding lending of Nil (March 31, 2012: Nil) in the form of CBLO. The amortised book value of securities given as collateral by the Bank to CCIL for availing the CBLO facility was Rs. 86,752.0 million at March 31, 2013 (March 31, 2012: Rs. 22,491.9 million).

11. Derivatives

ICICI Bank is a major participant in the financial derivatives market. The Bank deals in derivatives for balance sheet management and market making purposes whereby the Bank offers derivative products to its customers, enabling them to hedge their risks.

Dealing in derivatives is carried out by identified groups in the treasury of the Bank based on the purpose of the transaction. Derivative transactions are entered into by the treasury front office. Treasury middle office conducts an independent check of the transactions entered into by the front office and also undertakes activities such as confirmation, settlement, accounting, risk monitoring and reporting and ensures compliance with various internal and regulatory guidelines.

The market making and the proprietary trading activities in derivatives are governed by the Investment Policy and Derivative policy of the Bank, which lays down the position limits, stop loss limits as well as other risk limits. The Risk Management Group (RMG) lays down the methodology for computation and monitoring of risk. The Risk Committee of the Board (RCB) reviews the Bank''s risk management policy in relation to various risks including credit and recovery policy, investment policy, derivative policy, ALM policy and operational risk management policy. The RCB comprises independent directors and the Managing Director and CEO.

The Bank measures and monitors risk of its derivatives portfolio using such risk metrics as Value at Risk (VAR), stop loss limits and relevant greeks for options. Risk reporting on derivatives forms an integral part of the management information system.

The use of derivatives for hedging purposes is governed by the hedge policy approved by Asset Liability Management Committee (ALCO). Subject to prevailing RBI guidelines, the Bank deals in derivatives for hedging fixed rate, floating rate or foreign currency assets/liabilities. Transactions for hedging and market making purposes are recorded separately. For hedge transactions, the Bank identifies the hedged item (asset or liability) at the inception of the hedge itself. The effectiveness is assessed at the time of inception of the hedge and periodically thereafter.

Hedge derivative transactions are accounted for pursuant to the principles of hedge accounting. Derivatives for market making purpose are marked to market and the resulting gain/loss is recorded in the profit and loss account. The premium on option contracts is accounted for as per Foreign Exchange Dealers Association of India (FEDAI) guidelines.

Derivative transactions are covered under International Swaps and Derivatives Association (ISDA) master agreements with the respective counter parties. The exposure on account of derivative transactions is computed as per RBI guidelines and is marked against the credit limits approved for the respective counter-parties.

The Bank has exposure in credit derivative instruments including credit default swaps (CDS), credit linked notes, collateralised debt obligations and principal protected structures. The notional principal amount of these credit derivatives outstanding at March 31, 2013 was Nil (March 31, 2012: Nil) in funded instrument and Rs. 3,065.6 million (March 31, 2012: Rs. 10,349.9 million) in non-funded instruments. The profit and loss impact on the above portfolio on account of mark-to- market and realised gain/losses during the year ended March 31, 2013 was net profit of Rs. 75.0 million (March 31, 2012: net profit Rs. 561.0 million). At March 31, 2013, the total outstanding mark-to-market position of the above portfolio was a net gain of Rs. 10.8 million (March 31, 2012: net loss of Rs. 59.6 million). Non Rupee denominated credit derivatives are marked to market by the Bank based on counter-party valuation quotes, or internal models using inputs from market sources such as Bloomberg/Reuters, counter-parties and FIMMDA. Rupee denominated credit derivatives are marked to market by the Bank based on FIMMDA guidelines.

The Bank offers deposits to customers of its offshore branches with structured returns linked to interest, forex, credit or equity benchmarks. The Bank covers these exposures in the inter-bank market. At March 31, 2013, the net open position on this portfolio was Nil (March 31, 2012: Nil) with mark-to-market position of Rs. 13.9 million (March 31, 2012: Rs. 24.8 million). The profit and loss impact on account of mark-to-market and realised profit and loss during the year ended March 31, 2013 was a net loss of Rs. 18.7 million (March 31, 2012: net loss of Rs. 5.2 million).

The notional principal amount of forex contracts classified as non-trading at March 31, 2013 amounted to Rs. 526,615.8 million (March 31, 2012: Rs. 745,722.2 million). For these non-trading forex contracts, at March 31, 2013, marked to market position was asset of Rs. 2,855.4 million (March 31, 2012: Rs. 22,528.9 million) and liability of Rs. 6,652.4 million (March 31, 2012: Rs. 12,843.6 million), credit exposure of Rs. 16,131.9 million (March 31, 2012: Rs. 42,639.4 million) and likely impact of one percentage change in interest rate (100*PV01) was Rs. 52.3 million (March 31, 2012: Rs. 81.6 million).

The notional principal amount of forex contracts classified as trading at March 31, 2013 amounted to Rs. 2,311,888.1 million (March 31, 2012: Rs. 2,814,328.7 million). For these trading forex contracts, at March 31, 2013, marked to market position was asset of Rs. 38,526.6 million (March 31, 2012: Rs. 70,164.7 million) and liability of Rs. 32,462.9 million (March 31, 2012: Rs. 66,449.6 million), credit exposure of Rs. 97,274.0 million (March 31, 2012: Rs. 135,371.9 million) and likely impact of one percentage change in interest rate (100*PV01) was Rs. 58.9 million (March 31, 2012: Rs. 90.1 million). The net overnight open position at March 31, 2013 was Rs. 573.8 million (March 31, 2012: Rs. 299.1 million).

12. Exchange traded interest rate derivatives and currency options Exchange traded interest rate derivatives

The Bank had no outstanding exchange traded interest rate derivatives March 31, 2013 (March 31, 2012: Nil).

Exchange traded currency options

The following table sets forth, for the periods indicated, the details of exchange traded currency options.

13. Forward rate agreement (FRA)/interest rate swaps (iRS)

The Bank enters into FRA and IRS contracts for balance sheet management and market making purposes whereby the Bank offers derivative products to its customers to enable them to hedge their interest rate risk within the prevalent regulatory guidelines.

A FRA is a financial contract between two parties to exchange interest payments for a ''notional principal'' amount on settlement date, for a specified period from start date to maturity date. Accordingly, on the settlement date, cash payments based on contract rate and the settlement rate, which is the agreed bench-mark/reference rate prevailing on the settlement date, are made by the parties to one another. The benchmark used in the FRA contracts of the Bank is London Inter-Bank Offered Rate (LIBOR) of various currencies.

An IRS is a financial contract between two parties exchanging or swapping a stream of interest payments for a ''notional principal'' amount on multiple occasions during a specified period. The Bank deals in interest rate benchmarks like Mumbai Inter-Bank Offered Rate (MIBOR), Indian government securities Benchmark rate (INBMK), Mumbai Inter Bank Forward Offer Rate (MIFOR) and LIBOR of various currencies.

These contracts are subject to the risks of changes in market interest rates as well as the settlement risk with the counterparties.

The revision in the policy for loan classification and provisioning for non-performing loans held at the overseas branches, as detailed in Schedule 17 Significant Accounting Policies para 1a, does not have significant impact on the loan loss provisions made by the Bank at March 31, 2013.

14. Provision on standard assets

The Bank has made provision amounting to Rs. 1,439.1 million during the year ended March 31, 2013 (March 31, 2012: Nil) as per applicable RBI guidelines.

The provision on standard assets held by the Bank at March 31, 2013 is Rs. 16,235.1 million (March 31, 2012: Rs. 14,796.0 million).

15. Provision Coverage ratio

The provision coverage ratio of the Bank at March 31, 2013 computed as per the extant RBI guidelines is 76.8% (March 31, 2012: 80.4%).

16. Securitisation

The Bank sells loans through securitisation and direct assignment. The following tables set forth, for the periods indicated, the information on securitisation and direct assignment activity of the Bank as an originator till May 7, 2012.

The outstanding credit enhancement in the form of guarantees amounted to Rs. 8,234.1 million at March 31, 2013 (March 31, 2012: Rs. 11,833.0 million).

Outstanding credit enhancement in the form of guarantees for third party originated securitisation transactions amounted to Rs. 8,132.0 million at March 31, 2013 (March 31, 2012: Rs. 9,161.5 million) and outstanding liquidity facility for third party originated securitisation transactions amounted to Nil at March 31, 2013 (March 31, 2012: Nil).

The information on securitisation and direct assignment activity of the Bank as an originator as per RBI guidelines "Revisions to the Guidelines on Securitisation Transactions" dated May 7, 2012.

a. The Bank, as an originator, had not sold any loan through securitisation after May 7, 2012.

17. Financial assets transferred during the year to securitisation company (SC)/reconstruction company (RC)

The Bank has transferred certain assets to Asset Reconstruction Companies (ARCs) in terms of the guidelines issued by RBI governing such transfer. For the purpose of the valuation of the underlying security receipts issued by the underlying trusts managed by ARCs, the security receipts are valued at their respective NAVs as advised by the ARCs.

18. Details of non-performing assets purchased/sold, excluding those sold to SC/RC

The Bank has not purchased any non-performing assets in terms of the guidelines issued by the RBI circular no. DBOD. No.BPBC.16/21.04.048/2005-06 dated July 13, 2005. The Bank has sold certain non-performing assets in terms of the above RBI guidelines.

19. Floating provision

Bank holds floating provision of Rs. 1.9 million at March 31, 2013 (March 31, 2012: Rs. 1.9 million) taken over from erstwhile Bank of Rajasthan on amalgamation.

20. Exposure to sensitive sectors

The Bank has exposure to sectors, which are sensitive to asset price fluctuations. The sensitive sectors include capital markets and real estate.

21. risk category-wise country exposure

As per the extant RBI guidelines, the country exposure of the Bank is categorised into various risk categories listed in the following table. The funded country exposure (net) of the Bank as a percentage of total funded assets for Singapore was 1.45% (March 31, 2012: 1.54%) and United Kingdom was 1.34% (March 31, 2012: 1.23%). As the net funded exposure to Singapore and United Kingdom exceeds 1.0% of total funded assets, the Bank held a provision of Rs. 230.0 million on country exposure at March 31, 2013 (March 31, 2012: Rs. 240.0 million) based on RBI guidelines.

22. Details of Single Borrower Limit and Borrower group Limit exceeded by the Bank

During the year ended March 31, 2013 and March 31, 2012, the Bank has complied with the Reserve Bank of India guidelines on single borrower and borrower group limit.

23. Unsecured advances against intangible assets

The Bank had not made advances against intangible collaterals of the borrowers, which are classified as ''unsecured'' in its financial statements at March 31, 2013 (March 31, 2012: Nil) and the estimated value of the intangible collaterals was Nil at March 31, 2013 (March 31, 2012: Nil).

Provident Fund (pF)

As there is no liability towards interest rate guarantee on exempt provident fund on the basis of actuarial valuation, Bank has made no provision for the year ended March 31, 2013 (March 31, 2012: Rs. 17.9 million).

The following tables set forth, for the periods indicated, reconciliation of opening and closing balance of the present value of the defined benefit obligation for provident fund.

Bank has contributed employer''s contribution of Rs. 1,244.6 million to provident fund for the year ended March 31, 2013 (March 31, 2012: Rs. 1,115.3 million), which includes compulsory contribution made towards employee pension scheme under Employees Provident Fund and Miscellaneous Provisions Act, 1952

Superannuation Fund

Bank has contributed employer''s contribution of Rs. 100.5 million for the year March 31, 2013 (March 31, 2012: Rs. 114.8 million) to superannuation fund.

24. Movement in provision for credit card/debit card/savings account reward points

The following table sets forth, for the periods indicated, movement in provision for credit card/debit card/savings account reward points.

25. Provisions for income tax

The provision for income tax (including deferred tax) for the year ended March 31, 2013 amounted to Rs. 30,642.2 million (March 31, 2012: Rs. 23,320.7 million).

The Bank has a comprehensive system of maintenance of information and documents required by transfer pricing legislation under section 92-92F of the Income-tax Act, 1961. Finance Act, 2012 has enhanced the scope of transfer pricing to specified transaction with domestic related parties. The Bank is of the opinion that all transactions with international and domestic related parties are primarily at arm''s length so that the above legislation do not have material impact on the financial statements.

26. Deferred tax

At March 31, 2013, the Bank has recorded net deferred tax asset of Rs. 24,793.0 million (March 31, 2012: Rs. 25,453.2 million), which has been included in other assets.

27. Dividend distribution tax

For the purpose of computation of dividend distribution tax on the proposed dividend, the Bank has reduced the dividend received from its Indian subsidiaries, on which dividend distribution tax has been paid by the subsidiaries as per the provisions of Section 115-O of the Income Tax Act, 1961.

28. Related party transactions

The Bank has transactions with its related parties comprising subsidiaries, associates/joint ventures/other related entities, key management personnel and relatives of key management personnel.

Subsidiaries

ICICI Bank UK PLC, ICICI Bank Canada, ICICI Bank Eurasia Limited Liability Company, ICICI Prudential Life Insurance Company Limited1, ICICI Lombard General Insurance Company Limited1, ICICI Prudential Asset Management Company Limited1, ICICI Securities Limited, ICICI Securities Primary Dealership Limited, ICICI Home Finance Company Limited, ICICI Venture Funds Management Company Limited, ICICI International Limited, ICICI Trusteeship Services Limited, ICICI Investment Management Company Limited, ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Prudential Trust Limited1 and ICICI Prudential Pension Funds Management Company Limited1.

1. Jointly controlled entities.

associates/joint ventures/other related entities

ICICI Equity Fund1, ICICI Eco-net Internet and Technology Fund1, ICICI Emerging Sectors Fund1, ICICI Strategic Investments Fund1, ICICI Kinfra Limited1, FINO PayTech Limited (formerly known as Financial Inclusion Network & Operations Limited), TCW/ICICI Investment Partners Limited, I-Process Services (India) Private Limited, NIIT Institute of Finance, Banking and Insurance Training Limited, ICICI Venture Value Fund1, Comm Trade Services Limited, ICICI Foundation for Inclusive Growth, I-Ven Biotech Limited1, Rainbow Fund, ICICI Merchant Services Private Limited, Mewar Aanchalik Gramin Bank, India Infradebt Limited2.

1. Entities consolidated as per Accounting Standard (AS) 21 on ''Consolidated Financial Statements''.

2. This entity was incorporated and identified as a related party during the three months ended December 31, 2012.

Key management personnel

Ms. Chanda Kochhar, Mr. N. S. Kannan, Mr. K. Ramkumar, Mr. Rajiv Sabharwal. relatives of key management personnel

Mr. Deepak Kochhar, Mr. Arjun Kochhar, Ms. Aarti Kochhar, Mr. Mahesh Advani, Ms. Varuna Karna, Ms. Sunita R. Advani, Ms. Rangarajan Kumudalakshmi, Ms. Aditi Kannan, Mr. Narayanan Raghunathan, Mr. Narayanan Rangarajan, Mr. Narayanan Krishnamachari, Mr. R. Shyam, Ms. R. Suchithra, Mr. K. Jayakumar, Mr. R. Krishnaswamy, Ms. J. Krishnaswamy, Ms. Sangeeta Sabharwal.

The following were the significant transactions between the Bank and its related parties for the year ended March 31, 2013. A specific related party transaction is disclosed as a material related party transaction wherever it exceeds 10% of all related party transactions in that category.

Insurance services

During the year ended March 31, 2013, the Bank paid insurance premium to insurance subsidiaries amounting to Rs. 969.6 million (March 31, 2012: Rs. 957.9 million). The material transactions for the year ended March 31, 2013 were payment of insurance premium to ICICI Lombard General Insurance Company Limited amounting to Rs. 871.8 million (March 31, 2012: Rs. 775.8 million) and to ICICI Prudential Life Insurance Company Limited amounting to Rs. 97.8 million (March 31, 2012: Rs. 182.1 million).

During the year ended March 31, 2013, the Bank''s insurance claims (including the claims received by the Bank on behalf of key management personnel) from the insurance subsidiaries amounted to Rs. 503.6 million (March 31, 2012: Rs. 411.5 million). The material transactions for the year ended March 31, 2013 were with ICICI Lombard General Insurance Company Limited amounting to Rs. 444.3 million (March 31, 2012: Rs. 355.2 million) and with ICICI Prudential Life Insurance Company Limited amounting to Rs. 59.3 million (March 31, 2012: Rs. 56.3 million).

Fees and commission income

During the year ended March 31, 2013, the Bank received fees from its subsidiaries amounting to Rs. 4,726.6 million (March 31, 2012: Rs. 3,841.2 million), from its associates/joint ventures/other related entities amounting to Rs. 13.9 million (March 31, 2012: Rs. 19.9 million) and from relatives of key management personnel amounting to Rs. 0.1 million (March 31, 2012: Nil). The material transactions for the year ended March 31, 2013 were with ICICI Prudential Life Insurance Company Limited amounting to Rs. 3,860.1 million (March 31, 2012: Rs. 3,077.0 million) and with ICICI Lombard General Insurance Company Limited amounting to Rs. 516.6 million (March 31, 2012: Rs. 421.0 million).

During the year ended March 31, 2013, the Bank received commission on bank guarantees from its subsidiaries amounting to Rs. 41.8 million (March 31, 2012: Rs. 32.4 million). The material transactions for the year ended March 31, 2013 were with ICICI Bank UK PLC amounting to Rs. 35.1 million (March 31, 2012: Rs. 24.8 million) and with ICICI Bank Eurasia Limited Liability Company amounting to Rs. 5.6 million (March 31, 2012: Rs. 5.6 million).

Lease of premises, common corporate and facilities expenses

During the year ended March 31, 2013, the Bank recovered from its subsidiaries an amount of Rs. 1,099.3 million (March 31, 2012: Rs. 1,112.1 million), from its associates/joint ventures/other related entities an amount of Rs. 147.9 million (March 31, 2012: Rs. 38.4 million) and from its key management personnel an amount of Rs. 0.1 million (March 31, 2012: Nil) for lease of premises, common corporate and facilities expenses. The material transactions for the year ended March 31, 2013 were with ICICI Home Finance Company Limited amounting to Rs. 273.3 million (March 31, 2012: Rs. 258.6 million), ICICI Securities Limited amounting to Rs. 229.1 million (March 31, 2012: Rs. 272.0 million), ICICI Prudential Life Insurance Company Limited amounting to Rs. 164.0 million (March 31, 2012: Rs. 162.6 million), ICICI Bank UK PLC amounting to Rs. 151.2 million (March 31, 2012: Rs. 125.1 million), ICICI Merchant Services Private Limited amounting to Rs. 147.9 million (March 31, 2012: Rs. 38.4 million) and with ICICI Lombard General Insurance Company Limited amounting to Rs. 143.6 million (March 31, 2012: Rs. 138.4 million).

Secondment of employees

During the year ended March 31, 2013, the Bank recovered towards deputation of employees from its subsidiaries an amount of Rs. 52.2 million (March 31, 2012: Rs. 37.9 million) and from its associates/joint ventures/other related entities an amount of Rs. 6.6 million (March 31, 2012: Rs. 7.0 million). The material transactions for the year ended March 31, 2013 were with ICICI Investment Management Company Limited amounting to Rs. 35.6 million (March 31, 2012: Rs. 28.2 million), ICICI Securities Limited amounting to Rs. 14.5 million (March 31, 2012: Rs. 11.4 million) and with I-Process Services (India) Private Limited amounting to Rs. 6.6 million (March 31, 2012: Rs. 7.0 million). purchase of investments

During the year ended March 31, 2013, the Bank purchased certain investments from its subsidiaries amounting to Rs. 23,702.1 million (March 31, 2012: Rs. 5,757.0 million). The material transactions for the year ended March 31, 2013 were with ICICI Securities Primary Dealership Limited amounting to Rs. 17,330.7 million (March 31, 2012: Rs. 3,927.5 million), ICICI Lombard General Insurance Company Limited amounting to Rs. 3,314.5 million (March 31, 2012: Rs. 154.1 million) and with ICICI Prudential Life Insurance Company Limited amounting to Rs. 3,056.9 million (March 31, 2012: Rs. 1,675.4 million).

During the year ended March 31, 2013, the Bank invested in the equity shares of India Infradebt Limited amounting to Rs. 900.0 million (March 31, 2012: Nil), in the share application money for equity shares of ICICI Lombard General Insurance Company Limited amounting to Rs. 740.0 million (March 31, 2012: Nil), in the share application money for equity shares of Mewar Aanchalik Gramin Bank amounting to Rs. 18.6 million (March 31, 2012: Nil) and in equity warrants of FINO PayTech Limited amounting to Nil (March 31, 2012: Rs. 40.0 million).

Sale of investments

During the year ended March 31, 2013, the Bank sold certain investments to its subsidiaries amounting to Rs. 12,119.1 million (March 31, 2012: Rs. 9,532.7 million) and to its associates/joint ventures/other related entities amounting to Nil (March 31, 2012: Rs. 48.7 million). The material transactions for the year ended March 31, 2013 were with ICICI Securities Primary Dealership Limited amounting to Rs. 6,459.7 million (March 31, 2012: Rs. 2,783.6 million), ICICI Prudential Life Insurance Company Limited amounting to Rs. 4,088.0 million (March 31, 2012: Rs. 5,097.7 million) and with ICICI Lombard General Insurance Company Limited amounting to Rs. 1,321.2 million (March 31, 2012: Rs. 1,560.3 million). investment in Certificate of Deposits (CDs)/bonds issued by iCiCi Bank

During the year ended March 31, 2013, subsidiaries have invested in CDs/bonds issued by the Bank amounting to Rs. 1,914.0 million (March 31, 2012: Rs. 4,622.5 million). The material transactions for the year ended March 31, 2013 were with ICICI Prudential Life Insurance Company Limited amounting to Rs. 1,407.2 million (March 31, 2012: Rs. 3,165.6 million) and with ICICI Securities Primary Dealership Limited amounting to Rs. 506.8 million (March 31, 2012: Rs. 1,002.5 million).

Redemption/buyback of investments

During the year ended March 31, 2013, the Bank received a consideration from ICICI Bank UK PLC amounting to Rs. 5,428.5 million (equivalent to USD 100.0 million) (March 31, 2012: Nil) on account of buyback of equity/preference shares by ICICI Bank UK PLC.

During the year ended March 31, 2013, the Bank received a consideration from ICICI Emerging Sectors Fund amounting to Nil (March 31, 2012: Rs. 1,396.8 million) on account of redemption of units and distribution of gain/loss on units by ICICI Emerging Sectors Fund.

Reimbursement of expenses to subsidiaries

During the year ended March 31, 2013, the Bank reimbursed expenses to its subsidiaries amounting to Rs. 29.6 million (March 31, 2012: Rs. 40.6 million). The material transactions for the year ended March 31, 2013 were with ICICI Home Finance Company Limited amounting to Rs. 16.5 million (March 31, 2012: Nil), ICICI Bank Canada amounting to Rs. 7.3 million (March 31, 2012: Rs. 6.7 million) and with ICICI Bank UK PLC amounting to Rs. 5.8 million (March 31, 2012: Rs. 33.9 million).

Reimbursement of expenses to the Bank

During the year ended March 31, 2013, subsidiaries reimbursed expenses to the Bank amounting to Rs. 29.1 million (March 31, 2012: Rs. 19.0 million). The material transactions for the year ended March 31, 2013 were with ICICI Bank UK PLC amounting to Rs. 18.0 million (March 31, 2012: Rs. 13.4 million), ICICI Home Finance Company Limited amounting to Rs. 6.1 million (March 31, 2012: Rs. 0.2 million) and with ICICI Bank Canada amounting to Rs. 5.0 million (March 31, 2012: Rs. 5.4 million).

Brokerage, fees and other expenses

During the year ended March 31, 2013, the Bank paid brokerage, fees and other expenses to its subsidiaries amounting to Rs. 557.3 million (March 31, 2012: Rs. 491.5 million) and to its associates/joint ventures/other related entities amounting to Rs. 2,653.2 million (March 31, 2012: Rs. 1,832.5 million). The material transactions for the year ended March 31, 2013 were with ICICI Merchant Services Private Limited amounting to Rs. 1,305.2 million (March 31, 2012: Rs. 953.9 million), I-Process Services (India) Private Limited amounting to Rs. 1,045.2 million (March 31, 2012: Rs. 606.5 million), ICICI Home Finance Company Limited amounting to Rs. 373.7 million (March 31, 2012: Rs. 349.8 million) and with FINO PayTech Limited amounting to Rs. 258.4 million (March 31, 2012: Rs. 259.0 million). income on custodial services

During the year ended March 31, 2013, the Bank recovered custodial charges from its subsidiaries amounting to Rs. 5.1 million (March 31, 2012: Rs. 3.5 million) and from its associates/joint ventures/other related entities amounting to Rs. 0.9 million (March 31, 2012: Rs. 1.4 million). The material transactions for the year ended March 31, 2013 were with ICICI Securities Primary Dealership Limited amounting to Rs. 4.8 million (March 31, 2012: Rs. 3.3 million) and with ICICI Strategic Investments Fund amounting to Rs. 0.3 million (March 31, 2012: Rs. 0.6 million). interest expenses

During the year ended March 31, 2013, the Bank paid interest to its subsidiaries amounting to Rs. 390.9 million (March 31, 2012: Rs. 336.4 million), to its associates/joint ventures/other related entities amounting to Rs. 272.5 million (March 31, 2012: Rs. 160.5 million), to its key management personnel amounting to Rs. 2.9 million (March 31, 2012: Rs. 2.0 million) and to relatives of key management personnel amounting to Rs. 1.7 million (March 31, 2012: Rs. 1.1 million). The material transactions for the year ended March 31, 2013 were with ICICI Securities Limited amounting to Rs. 184.5 million (March 31, 2012: Rs. 111.6 million), Mewar Aanchalik Gramin Bank amounting to Rs. 162.4 million (March 31, 2012: Rs. 128.9 million), ICICI Prudential Life Insurance Company Limited amounting to Rs. 148.4 million (March 31, 2012: Rs. 129.1 million) and with India Infradebt Limited amounting to Rs. 84.5 million (March 31, 2012: Nil).

Interest income

During the year ended March 31, 2013, the Bank received interest from its subsidiaries amounting to Rs. 1,781.2 million (March 31, 2012: Rs. 1,686.8 million), from its associates/joint ventures/other related entities amounting to Rs. 95.1 million (March 31, 2012: Rs. 49.1 million), from its key management personnel amounting to Rs. 0.4 million (March 31, 2012: Rs. 0.5 million) and from relatives of key management personnel amounting to Rs. 0.7 million (March 31, 2012: Rs. 0.7 million). The material transactions for the year ended March 31, 2013 were with ICICI Home Finance Company Limited amounting to Rs. 1,202.0 million (March 31, 2012: Rs. 1,181.4 million) and with ICICI Bank Eurasia Limited Liability Company amounting to Rs. 245.9 million (March 31, 2012: Rs. 210.9 million). other income

The Bank undertakes derivative transactions with its subsidiaries, associates, joint ventures and other related entities. The Bank manages its foreign exchange and interest rate risks arising from these transactions by covering them in the market. During the year ended March 31, 2013, the net gain of the Bank on forex and derivative transactions entered with subsidiaries was Rs. 304.5 million (March 31, 2012: net loss of Rs. 337.3 million). The material transactions for the year ended March 31, 2013 were gain of Rs. 235.7 million (March 31, 2012: loss of Rs. 620.0 million) with ICICI Bank UK PLC, gain of Rs. 170.4 million (March 31, 2012: gain of Rs. 352.9 million) with ICICI Bank Canada, loss of Rs. 162.5 million (March 31, 2012: gain of Rs. 168.4 million) with ICICI Home Finance Company Limited and gain of Rs. 31.6 million (March 31, 2012: loss of Rs. 242.2 million) with ICICI Securities Primary Dealership Limited.

While the Bank within its overall position limits covers these transactions in the market, the above amounts represent only the transactions with its subsidiaries, associates, joint ventures and other related entities and not the offsetting/ covering transactions.

Dividend income

During the year ended March 31, 2013, the Bank received dividend from its subsidiaries amounting to Rs. 9,117.6 million (March 31, 2012: Rs. 7,364.1 million). The material transactions for the year ended March 31, 2013 were with ICICI Prudential Life Insurance Company Limited amounting to Rs. 3,271.5 million (March 31, 2012: Rs. 2,321.7 million), ICICI Bank Canada amounting to Rs. 1,666.2 million (March 31, 2012: Rs. 283.0 million), ICICI Home Finance Company Limited amounting to Rs. 1,389.9 million (March 31, 2012: Rs. 1,714.1 million) and with ICICI Bank UK PLC amounting to Rs. 1,307.3 million (March 31, 2012: Rs. 1,216.9 million).

Dividend paid

During the year ended March 31, 2013, the Bank paid dividend to its key management personnel amounting to Rs. 6.7 million (March 31, 2012: Rs. 4.5 million). The dividend paid during the year ended March 31, 2013 to Ms. Chanda Kochhar was Rs. 5.1 million (March 31, 2012: Rs. 3.8 million), to Mr. N. S. Kannan was Rs. 1.2 million (March 31, 2012: Rs. 0.7 million) and to Mr. K. Ramkumar was Rs. 0.4 million (March 31, 2012: Nil).

Remuneration to whole-time directors

Remuneration paid to the whole-time directors of the Bank during the year ended March 31, 2013 was Rs. 154.9 million (March 31, 2012: Rs. 111.3 million). The remuneration paid for the year ended March 31, 2013 to Ms. Chanda Kochhar was Rs. 54.2 million (March 31, 2012: Rs. 37.7 million), to Mr. N. S. Kannan was Rs. 32.2 million (March 31, 2012: Rs. 25.0 million), to Mr. K. Ramkumar was Rs. 42.7 million (March 31, 2012: Rs. 25.4 million) and to Mr. Rajiv Sabharwal was Rs. 25.8 million (March 31, 2012: Rs. 23.2 million).

Sale of fixed assets

During the year ended March 31, 2013, the Bank sold fixed assets to its subsidiaries amounting to Rs. 2.1 million (March 31, 2012: Rs. 18.4 million) and to its key management personnel amounting to Rs. 0.7 million (March 31, 2012: Nil). The material transactions for the year ended March 31, 2013 were with ICICI Securities Limited amounting to Rs. 1.9 million (March 31, 2012: Rs. 1.0 million), ICICI Venture Funds Management Company Limited amounting to Nil (March 31, 2012: Rs. 14.7 million), ICICI Lombard General Insurance Company Limited amounting to Nil (March 31, 2012: Rs. 2.7 million) and with Mr. K. Ramkumar amounting to Rs. 0.7 million (March 31, 2012: Nil). purchase of fixed assets

During the year ended March 31, 2013, the Bank purchased fixed assets from its subsidiaries amounting to Rs. 2.6 million (March 31, 2012: Rs. 9.4 million). The material transactions for the year ended March 31, 2012 were with ICICI Venture Funds Management Company Limited amounting to Rs. 1.8 million (March 31, 2012: Nil), ICICI Prudential Asset Management Company Limited amounting to Rs. 0.8 million (March 31, 2012: Nil), ICICI Lombard General Insurance Company Limited amounting to Nil (March 31, 2012: Rs. 4.6 million) and with ICICI Prudential Life Insurance Company Limited amounting to Nil (March 31, 2012: Rs. 4.2 million).

Sale of gold coins

During the year ended March 31, 2013, the Bank sold gold coins to ICICI Prudential Life Insurance Company Limited amounting to Rs. 1.7 million (March 31, 2012: Rs. 45.4 million).

Donation

During the year ended March 31, 2013, the Bank has given donation to ICICI Foundation for Inclusive Growth amounting to Rs. 80.0 million (March 31, 2012: Rs. 239.7 million). purchase of loan

During the year ended March 31, 2013, the Bank purchased loans from ICICI Bank UK PLC amounting to Nil (March 31, 2012: Rs. 12,870.5 million).

Sale of loan

During the year ended March 31, 2013, the Bank sold a loan to ICICI Bank UK PLC amounting to Rs. 1,357.1 million (March 31, 2012: Rs. 2,543.8 million).

Purchase of bank guarantees

Bank guarantees issued by ICICI Bank UK PLC on behalf of its clients were transferred to the Bank amounting to Rs. 12,221.2 million during the year ended March 31, 2013 (March 31, 2012: Rs. 1,279.2 million).

Letters of Comfort

The Bank has issued letters of comfort on behalf of its banking subsidiaries. The details of the letters are given below.

The Bank has issued an undertaking on behalf of ICICI Securities Inc. for Singapore dollar 10.0 million (currently equivalent to Rs. 437.2 million) to the Monetary Authority of Singapore (MAS), has executed indemnity agreement on behalf of ICICI Bank Canada to its independent directors for a sum not exceeding Canadian dollar 2.5 million (currently equivalent to Rs. 133.6 million) each, aggregating to Canadian dollar 15.0 million (currently equivalent to Rs. 801.6 million). The Bank has furnished an undertaking on behalf of ICICI Bank Eurasia Limited Liability Company, for an amount of US$ 19.0 million (currently equivalent to Rs. 1,031.4 million) in relation to its borrowing. The aggregate amount of Rs. 2,270.2 million at March 31, 2013 (March 31, 2012: Rs. 915.2 million) is included in the contingent liabilities.

During the year, the Bank has issued an undertaking on behalf of ICICI Bank Eurasia LLC and to two independent directors on behalf of ICICI Bank Canada.

As per the assessment done, there is no likely financial impact of the above letters issued to overseas regulators or of the indemnity agreements at March 31, 2013.

In addition to the above, the Bank has also issued letters of comfort in the nature of letters of awareness on behalf of banking and non-banking subsidiaries in respect of their borrowings made or proposed to be made and for other incidental business purposes. As they are in the nature of factual statements or confirmation of facts, they do not create any financial impact on the Bank.

The letters of comfort in the nature of letters of awareness that are outstanding at March 31, 2013 issued by the Bank on behalf of its subsidiaries, aggregate to Rs. 18,640.5 million (March 31, 2012: Rs. 24,238.9 million). During the year ended March 31, 2013, borrowings pertaining to letters of comfort aggregating Rs. 5,598.4 million were repaid.

Related party balances

The following table sets forth, the balance payable to/receivable from subsidiaries/joint ventures/associates/other related entities/key management personnel and relatives of key management personnel at March 31, 2013.

29. Small and micro enterprises

Under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which came into force from October 2, 2006, certain disclosures are required to be made relating to enterprises covered under the Act. During the year ended March 31, 2013, the amount paid after the due date to vendors registered under the MSMED Act, 2006 was Rs. 6.0 million (March 31, 2012: Rs. 7.1 million). An amount of Rs. 0.2 million (March 31, 2012: Rs. 0.1 million) has been charged to profit & loss account towards accrual of interest on these delayed payments.

30. penalties/fines imposed by RBI and other banking regulatory bodies

The penalty imposed by RBI and other banking regulatory bodies during the year ended March 31, 2013 was Rs. 3.1 million (March 31, 2012: Rs. 1.5 million).

During the the year ended March 31, 2013, RBI imposed a penalty of Rs. 66,000 through letter dated May 2, 2012, with regard to bouncing of two Subsidiary General Ledger deals of the clients of Rs. 60.0 million and Rs. 6.0 million on March 28, 2012. On October 9, 2012, a penalty of Rs. 3.0 million was levied by RBI for non compliance with Know Your Customer (KYC) directions issued by RBI. The Bank has paid these penalties to RBI.

31. Disclosure on remuneration Compensation policy and practices (A) Qualitative disclosures

a) Information relating to the composition and mandate of the remuneration Committee

The Board Governance, Remuneration & Nomination Committee (BGRNC) comprises three independent Directors. The functions of the Committee include recommendation of appointments of Directors to the Board, evaluation of the performance of the Managing Director & CEO (MD & CEO) and other wholetime Directors (WTDs) on predetermined parameters, recommendation to the Board of the remuneration (including performance bonus and perquisites) to WTDs, approval of the policy for and quantum of bonus payable to the members of the staff, framing of guidelines for the Employees Stock Option Scheme (ESOS) and recommendation of grant of the Bank''s stock options to employees and WTDs of the Bank and its subsidiary companies.

b) Information relating to design and structure of remuneration processes and the key features and objectives of remuneration policy

The Bank has under the guidance of the Board and the BGRNC, followed compensation practices intended to drive meritocracy within the framework of prudent risk management. This approach has been incorporated in the Compensation Policy approved by the Board on January 31, 2012, pursuant to the guidelines issued by RBI.

The key elements of the Bank''s compensation practices are:

- Effective governance of compensation: the BGRNC has oversight over compensation. The Committee defines Key Performance Indicators (KPIs) for wholetime Directors and equivalent positions and the organisational performance norms for bonus based on the financial and strategic plan approved by the Board. The KPIs include both quantitative and qualitative aspects. The BGRNC assesses organisational performance as well as the individual performance for wholetime Directors and equivalent positions. Based on its assessment, it makes recommendations to the Board regarding compensation for wholetime Directors and equivalent positions and bonus for employees.

- Alignment of compensation philosophy with prudent risk taking: the Bank seeks to achieve a prudent mix of fixed and variable pay, with a higher proportion of variable pay at senior levels and no guaranteed bonuses. Compensation is sought to be aligned to both financial and non-financial indicators of performance including aspects like risk management and customer service. In addition, the Bank has an employee stock option scheme aimed at aligning compensation to long term performance through stock option grants that vest over a period of time. Compensation of staff in financial and risk control functions is independent of the business areas they oversee and depends on their performance assessment.

c) Description of the ways in which current and future risks are taken into account in the remuneration processes including the nature and type of the key measures used to take account of these risks.

The Board approves the risk framework for the Bank and the business activities of the Bank are undertaken within this framework to achieve the financial plan. The risk framework includes the Bank''s risk appetite, limits framework and policies and procedures governing various types of risk. KPIs of wholetime Directors & equivalent positions, as well as employees, incorporate relevant risk management related aspects. For example, in addition to performance targets in areas such as growth and profits, performance indicators include aspects such as the desired funding profile and asset quality. The BGRNC takes into consideration all the above aspects while assessing organisational and individual performance and making compensation- related recommendations to the Board.

d) Description of the ways in which the Bank seeks to link performance during a performance measurement period with levels of remuneration

The level of performance bonus, increments in salary and allowances and grant of stock options is determined based on the assessment of performance as described above.

e) Discussion of the Bank''s policy on deferral and vesting of variable remuneration and the Bank''s policy and criteria for adjusting deferred remuneration before vesting and after vesting

The quantum of bonus for an employee does not exceed a certain percentage (as stipulated in the compensation policy) of the total fixed pay in a year. Within this percentage, if the quantum of bonus exceeds a predefined threshold percentage of the total fixed pay, a part of the bonus is deferred and paid over a period. The deferred portion is subject to malus, under which the Bank would prevent vesting of all or part of the variable pay in the event of an enquiry determining gross negligence or breach of integrity. In such cases, variable pay already paid out is also subject to clawback arrangements.

f) Description of the different forms of variable remuneration that the Bank utilises and the rationale for using these different forms

The Bank pays performance linked retention pay (PLRP) to its front-line staff and junior management and performance bonus to its middle and senior management. PLRP aims to reward front line and junior managers, mainly on the basis of skill maturity attained through experience and continuity in role which is a key differentiator for customer service. The Bank also pays variable pay to sales officers and relationship managers in wealth management roles. The Bank ensures higher variable pay at senior levels and lower variable pay for front-line staff and junior management levels.

32. Drawdown from reserves

There has been no draw down from reserves during the year ended March 31, 2013 (March 31, 2012: Nil).

33. Comparative figures

Figures of the previous year have been re-grouped to conform to the current year presentation.


Mar 31, 2012

1. Earnings per share

Basic and diluted earnings per equity share are computed in accordance with AS 20 - Earnings per share. Basic earnings per equity share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. The diluted earnings per equity share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

1. For the purpose of computing the ratio, working funds represent the average of total assets as reported in Form X to RBI under Section 27 of the Banking Regulation Act, 1949.

2. For the purpose of computing the ratio, assets represent average of total assets as reported in Form X to RBI under Section 27 of the Banking Regulation Act, 1949.

3. The number of employees includes sales executives, employees on fixed term contracts and interns.

4. The average deposits and the average advances represent the simple average of the figures reported in Form A to RBI under Section 42(2) of the Reserve Bank of India Act, 1934.

2. Capital adequacy ratio

The Bank is subject to the Basel II capital adequacy guidelines stipulated by RBI with effect from March 31, 2008. The RBI guidelines on Basel II require the Bank to maintain a minimum capital to risk-weighted assets ratio (CRAR) of 9.0% and a minimum Tier I CRAR of 6.0% on an ongoing basis.

RBI has also stipulated that banks shall maintain capital at higher of the minimum capital required as per Basel II or 80% of the minimum capital requirement under Basel I. At March 31, 2012, the prudential floor at 80% of the minimum capital requirement under Basel I was Rs 332,499.0 million and was lower than the minimum capital requirement of Rs 358,727.2 million under Basel II. Hence, the Bank has maintained capital adequacy at March 31, 2012 as per the Basel II norms.

1. Includes an issuance of Rs 25,000.0 million, wherein the funds were received in March 2010 but were not considered for Tier II capital pending allotment.

3. Information about business and geographical segments Business Segments

Pursuant to the guidelines issued by RBI on Accounting Standard 17 - (Segment Reporting) - Enhancement of Disclosures dated April 18, 2007, effective from year ended March 31, 2008, the following business segments have been reported.

- 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".

- Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, which are not included under Retail Banking.

- Treasury includes the entire investment portfolio of the Bank.

- Other Banking includes hire purchase and leasing operations and other items not attributable to any particular business segment.

Income, expenses, assets and liabilities are either specifically identified with individual segments or are allocated to segments on a systematic basis.

All liabilities are transfer priced to a central treasury unit, which pools all funds and lends to the business units at appropriate rates based on the relevant maturity of assets being funded after adjusting for regulatory reserve requirements.

The transfer pricing mechanism of the Bank is periodically reviewed. The segment results are determined based on the transfer pricing mechanism prevailing for the respective reporting periods.

4. Maturity pattern

- In compiling the information of maturity pattern, certain estimates and assumptions have been made by the management.

- Assets and liabilities in foreign currency exclude off-balance sheet assets and liabilities.

1. The aforesaid disclosure is in accordance with the revised maturity buckets as per the RBI circular no. DB0D.BPBC.22/21.04.018/2009-10 dated July 1, 2009.

2. Includes foreign currency balances.

3. Includes borrowings in the nature of subordinated debts and preference shares as per RBI guidelines vide circular no. DBOD.BPBC no. 81/21.01.002/2009-10.

1. The aforesaid disclosure is in accordance with the revised maturity buckets as per the RBI circular no. DBOD. BPBC.22/21.04.018/2009-10 dated July 1, 2009.

2. Includes foreign currency balances.

3. Includes borrowings in the nature of subordinated debts and preference shares as per RBI guidelines vide circular no. DBOD. BPBC no. 81/21.01.002/2009-10.

5. Preference shares

Certain government securities amounting to Rs 2,578.1 million at March 31, 2012 (March 31, 2011: Rs 2,563.8 million) have been earmarked against redemption of preference shares issued by the Bank, which fall due for redemption on April 20, 2018, as per the original issue terms.

6. Employee Stock Option Scheme (ESOS)

In terms of the ESOS, as amended, the maximum number of options granted to any eligible employee in a financial year shall not exceed 0.05% of the issued equity shares of the Bank at the time of grant of the options and aggregate of all such options granted to the eligible employees shall not exceed 5% of the aggregate number of the issued equity shares of the Bank on the date(s) of the grant of options. Under the stock option scheme, eligible employees are entitled to apply for equity shares. Options granted for fiscal 2003 and earlier years vest in a graded manner over a three-year period, with 20%, 30% and 50% of the grants vesting in each year commencing from the end of 12 months from the date of grant. Options granted from fiscal 2004 vest in a graded manner over a four-year period, with 20%, 20%, 30% and 30% of the grants vesting in each year commencing from the end of 12 months from the date of grant. Options granted in April 2009 vest in a graded manner over a five year period with 20%, 20%, 30% and 30% of grant vesting each year, commencing from the end of 24 months from the date of grant. Options granted in September, 2011 vest in a graded manner over a five years period with 15%, 20%, 20% and 45% of grant vesting each year, commencing from the end of 24 months from the date of the grant. The options can be exercised within 10 years from the date of grant or five years from the date of vesting, whichever is later. As per the scheme, the exercise price of ICICI Bank's options is the last closing price on the stock exchange, which recorded highest trading volume preceding the date of grant of options. Hence, there was no compensation cost based on intrinsic value of options.

In February, 2011, the Bank granted 3,035,000 options to eligible employees and whole-time Directors of ICICI Bank and certain of its subsidiaries at an exercise price of Rs 967. Of these options granted, 50% would vest on April 30, 2014 and the balance 50% would vest on April 30, 2015. The options can be exercised within 10 years from the date of grant or five years from the date of vesting, whichever is later. Based on intrinsic value of options, compensation cost of Rs 21.0 million was recognised during the year ended March 31, 2012 (March 31, 2011 Rs 2.9 million).

7. Reconciliation of nostro account

In terms of RBI circular no. DB0D.BPBC.No.133/21.04.018/2008-09 dated May 11, 2009, Rs 3.2 million (March 31, 2011: Rs 2.6 million) representing outstanding credit balances of individual value less than US$ 2,500 or equivalent lying in nostro account, which were originated up to March 31, 2002, was transferred to profit and loss account during the year ended March 31, 2012 and has been subsequently appropriated to General Reserve.

1. Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.

2. Collateralised debt obligations securities have been included in the above data based on the arranger of such instruments.

3. Includes Rs 2,619.0 million of application money towards corporate bonds/debentures.

4. Excludes investments, amounting to Rs 7,086.1 million, in preference shares of subsidiaries and Rs 5,092.1 million in subordinated bonds of subsidiaries, namely ICICI Bank UK PLC and ICICI Bank Canada.

5. Excludes equity shares, units of equity-oriented mutual fund, units of venture capital fund, pass through certificates, security receipts, commercial papers, certificates of deposit, unlisted convertible debentures and securities acquired by way of conversion of debt.

6. Other investments include deposits under RIDF/RHDF deposit schemes amounting to Rs 181,025.1 million.

7. Excludes investments in non-Indian government securities by overseas branches amounting to Rs 4,402.4 million.

8. Others include non-SLR Indian government securities of Rs 96.1 million.

1. Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.

2. Collateralised debt obligations securities have been included in the above data based on the arranger of such instruments.

3. Includes Rs 900.0 million of application money towards corporate bonds/debentures.

4. Excludes investments amounting to Rs 6,359.0 million, in preference shares of subsidiaries and Rs 4,529.8 million in subordinated bonds of subsidiaries, namely ICICI Bank UK PLC and ICICI Bank Canada.

5. Excludes equity shares, units of equity-oriented mutual fund, units of venture capital fund, pass through certificates, security receipts, commercial papers, certificates of deposit, unlisted convertible debentures and securities acquired by way of conversion of debt.

6. Other investments include deposits under RIDF/RHDF deposit schemes amounting to Rs 150,795.6 million.

7. Excludes investments in non-Indian government securities by overseas branches amounting to Rs 8,862.3 million.

8. Others include non-SLR Indian government securities of Rs 191.3 million.

8. Sales and transfers of securities to/from Held to Maturity (HTM) category

During the year ended March 31, 2012, the value of sales and transfers of securities to/from HTM category (excluding one time transfer of securities to/from HTM category with the approval of Board of Directors permitted to be undertaken by banks at the beginning of the accounting year and sale to RBI under pre-announced Open Market Operation auctions) have not exceeded 5% of the book value of the investments held in HTM category at the beginning of the year.

9. CBLO transaction

Collateralised Borrowing and Lending Obligation (CBLO) is a discounted money market instrument, developed by The Clearing Corporation of India Limited (CCIL) and approved by RBI, which involves secured borrowings and lending transactions. At March 31, 2012, the Bank had outstanding borrowings amounting to Nil (March 31, 2011: Nil) and outstanding lending of Nil (March 31, 2011: Rs 1,999.6 million) in the form of CBLO. The amortised book value of securities given as collateral by the Bank to CCIL for availing the CBLO facility was Rs 22,491.9 million at March 31, 2012 (March 31, 2011: Rs 51,841.1 million).

10. Derivatives

ICICI Bank is a major participant in the financial derivatives market. The Bank deals in derivatives for balance sheet management and market making purposes whereby the Bank offers derivative products to its customers, enabling them to hedge their risks.

Dealing in derivatives is carried out by identified groups in the treasury of the Bank based on the purpose of the transaction. Derivative transactions are entered into by the treasury front office. Treasury middle office conducts an independent check of the transactions entered into by the front office and also undertakes activities such as confirmation, settlement, accounting, risk monitoring and reporting and ensures compliance with various internal and regulatory guidelines.

The market making and the proprietary trading activities in derivatives are governed by the Investment Policy and Derivative policy of the Bank, which lays down the position limits, stop loss limits as well as other risk limits. The Risk Management Group (RMG) lays down the methodology for computation and monitoring of risk. The Risk Committee of the Board (RCB) reviews the Bank's risk management policy in relation to various risks including credit and recovery policy, investment policy, derivative policy, ALM policy and operational risk management policy. The RCB comprises independent directors and the Managing Director and CEO.

The Bank measures and monitors risk of its derivatives portfolio using such risk metrics as Value at Risk (VAR), stop loss limits and relevant greeks for options. Risk reporting on derivatives, forms an integral part of the management information system.

The use of derivatives for hedging purposes is governed by the hedge policy approved by Asset Liability Management Committee (ALCO). Subject to prevailing RBI guidelines, the Bank deals in derivatives for hedging fixed rate, floating rate or foreign currency assets/liabilities. Transactions for hedging and market making purposes are recorded separately. For hedge transactions, the Bank identifies the hedged item (asset or liability) at the inception of the hedge itself. The effectiveness is assessed at the time of inception of the hedge and periodically thereafter.

Hedge derivative transactions are accounted for pursuant to the principles of hedge accounting. Derivatives for market making purpose are marked to market and the resulting gain/loss is recorded in the profit and loss account. The premium on option contracts is accounted for as per Foreign Exchange Dealers Association of India (FEDAI) guidelines.

Derivative transactions are covered under International Swaps and Derivatives Association (ISDA) master agreements with the respective counter parties. The exposure on account of derivative transactions is computed as per RBI guidelines and is marked against the credit limits approved for the respective counter-parties.

The Bank has exposure in credit derivative instruments including credit default swaps, credit linked notes, collateralised debt obligations and principal protected structures. The notional principal amount of these credit derivatives outstanding at March 31, 2012 was Nil (March 31, 2011: Rs 10,599.7 million) in funded instruments and Rs 10,349.9 million (March 31, 2011: Rs 28,168.2 million) in non-funded instruments which includes Nil (March 31, 2011: Rs 223.0 million) of protection bought by the Bank.

The profit and loss impact on the above portfolio on account of mark-to-market and realised profit/losses during the year ended March 31, 2012 was net profit of Rs 561.0 million (March 31, 2011: Rs 94.6 million). At March 31, 2012, the total outstanding mark-to-market position of the above portfolio was a net loss of Rs 59.6 million (March 31, 2011: Rs 527.9 million). The credit derivatives are marked to market by the Bank based on counter-party valuation quotes, or internal models using inputs from market sources such as Bloomberg/Reuters, counter-parties and FIMMDA.

The Bank offers deposits to customers of its offshore branches with structured returns linked to interest, forex, credit or equity benchmarks. The Bank covers these exposures in the inter-bank market. At March 31, 2012, the net open position on this portfolio was Nil (March 31, 2011: Nil) with mark-to-market gain of Rs 24.8 million (March 31, 2011: Rs 27.8 million). The profit and loss impact on account of mark-to-market and realised profit and loss during the year ended March 31, 2012 was a net loss of Rs 5.2 million.

The notional principal amount of forex contracts classified as non-trading at March 31, 2012 amounted to Rs 745,722.2 million (March 31, 2011: Rs 340,828.8 million). For these non-trading forex contracts, at March 31, 2012, marked to market positions was asset of Rs 22,528.9 million (March 31, 2011: Rs 2,532.0 million) and liability of Rs 12,843.6 million (March 31, 2011: Rs 7,333.8 million), credit exposure of Rs 42,639.4 million (March 31, 2011: Rs 10,873.7 million) and likely impact of one percentage change in interest rate (100*PV01) was Rs (81.6) million (March 31, 2011: Rs (9.6) million).

The notional principal amount of forex contracts classified as trading at March 31, 2012 amounted to Rs 2,814,328.7 million (March 31, 2011: Rs 2,127,789.6 million). For these trading forex contracts, at March 31, 2012, marked to market position was asset of Rs 70,164.7 million (March 31, 2011: Rs 39,289.0 million) and liability of Rs 66,449.6 million (March 31, 2011: Rs 33,916.3 million), credit exposure of Rs 135,371.9 million (March 31, 2011: Rs 92,213.9 million) and likely impact of one percentage change in interest rate (100*PV01) was Rs (90.1) million (March 31, 2011: Rs (45.4) million). The net overnight open position at March 31, 2012 was Rs 299.1 million (March 31, 2011: Rs 502.1 million).

11. Forward rate agreement (FRA)/Interest rate swaps (IRS)

The Bank enters into FRA and IRS contracts for balance sheet management and market making purposes whereby the Bank offers derivative products to its customers to enable them to hedge their interest rate risk within the prevalent regulatory guidelines.

A FRA is a financial contract between two parties to exchange interest payments for a 'notional principal' amount on settlement date, for a specified period from start date to maturity date. Accordingly, on the settlement date, cash payments based on contract rate and the settlement rate, which is the agreed bench-mark/reference rate prevailing on the settlement date, are made by the parties to one another. The benchmark used in the FRA contracts of the Bank is LIBOR of various currencies.

An IRS is a financial contract between two parties exchanging or swapping a stream of interest payments for a 'notional principal' amount on multiple occasions during a specified period. The Bank deals in interest rate benchmarks like MIBOR, INBMK, MIFOR and LIBOR of various currencies.

These contracts are subject to the risks of changes in market interest rates as well as the settlement risk with the counterparties.

12. Provision on standard assets

The Bank makes provision on standard assets as per applicable RBI guidelines.

The Bank has not written back any standard assets provision pursuant to the RBI circular no. DBOD.BPBC.83/21.01.002/ 2008-09 dated November 15, 2008 and DBOD.BPBC.94/21.04.048/ 2011-12 dated May 18, 2011. The provision on standard assets held by the Bank at March 31, 2012 was Rs 14,796.0 million (March 31, 2011: Rs 14,796.0 million).

13. Provision Coverage Ratio

The provision coverage ratio of the Bank at March 31, 2012 computed as per the extant RBI guidelines is 80.4% (March 31, 2011: 76.0%).

14. Farm loan waiver

The Ministry of Finance, Government of India had issued guidelines for the implementation of the Agriculture Debt Waiver and Relief Scheme for farmers on May 23, 2008. The Bank has implemented the scheme as per guidelines issued by RBI circular DBOD No.BPBC. 26/21.04.048/2008-09 dated July 30, 2008 on "Agricultural Debt Waiver and Debt Relief Scheme, 2008 - Prudential norms on Income Recognition, Asset Classification and Provisioning and Capital Adequacy".

Pursuant to the Scheme, an aggregate amount of Rs 2,795.1 million (March 31, 2011: Rs 2,795.3 million) has been waived which was recoverable from Government of India. The amount of Rs 2,795.1 million has been received up to March 31, 2012 (March 31, 2011: Rs 2,788.9 million).

In terms of RBI circular DBOD.No.BPBC.26/21.04.048/2008-2009 dated July 30, 2008 on Agriculture Debt Waiver and Debt Relief Scheme, 2008 - Prudential Norms on Income Recognition, Asset Classification and Provisioning and Capital Adequacy, an amount of Rs 50.4 million, being provision held on Present Value (PV) basis, has been transferred directly to General Reserve during the year ended March 31, 2012 without routing through the profit and loss account.

15. Details of non-performing assets purchased/sold, excluding those sold to SC/RC

The Bank has not purchased any non-performing assets in terms of the guidelines issued by the RBI circular no. DBOD. No.BPBC.16/21.04.048/2005-06 dated July 13, 2005. The Bank has sold certain non-performing assets in terms of these RBI guidelines.

16. Floating provision

Bank holds floating provision of Rs 1.9 million at March 31, 2012 (March 31, 2011: Rs 1.9 million) taken over from erstwhile Bank of Rajasthan on amalgamation.

1. Represents loans towards agriculture and allied activities that qualify for priority sector lending.

2. Excludes retail loans towards agriculture and allied activities that qualify for priority sector lending. Excludes commercial business loans, developer financing and dealer funding.

17. Lending to sensitive sectors

The Bank has lending to sectors, which are sensitive to asset price fluctuations. The sensitive sectors include capital markets and real estate.

18. Risk category-wise country exposure

As per the extant RBI guidelines, the country exposure of the Bank is categorised into various risk categories listed in the following table. The funded country exposure (net) of the Bank as a percentage of total funded assets for Singapore was 1.54% (March 31, 2011: 0.92%) and United Kingdom was 1.23% (March 31, 2011: 1.32%). As the net funded exposure to Singapore and United Kingdom exceeds 1.0% of total funded assets, the Bank held a provision of Rs 240.0 million on country exposure at March 31, 2012 (March 31, 2011: Rs 140.0 million) based on RBI guidelines.

19. Details of Single Borrower Limit and Borrower Group Limit exceeded by the Bank

During the year ended March 31, 2012, the Bank has complied with the Reserve Bank of India guidelines on single borrower and borrower group limit.

20. Unsecured advances against intangible assets

The Bank had not made advances against intangible collaterals of the borrowers, which are classified as 'unsecured' in its financial statements at March 31, 2012 (March 31, 2011: Nil) and the estimated value of the intangible collaterals was Nil at March 31, 2012 (March 31, 2011: Nil).

Superannuation Fund

Bank has contributed employer's contribution of Rs 114.8 million for the year March 31, 2012 (March 31, 2011: Rs 102.6 million) to superannuation fund.

21. Provision for income tax

The provision for income tax (including deferred tax) for the year ended March 31, 2012 amounted to Rs 23,320.7 million (March 31, 2011: Rs 16,063.3 million).

The Bank has a comprehensive system of maintenance of information and documents required by transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. The Bank is of the opinion that all international transactions are at arm's length so that the above legislation will not have material impact on the financial statements.

22. Deferred tax

At March 31, 2012, the Bank has recorded net deferred tax asset of Rs 25,453.2 million (March 31, 2011: Rs 26,900.3 million), which has been included in other assets.

23. Dividend distribution tax

For the purpose of computation of dividend distribution tax on the proposed dividend, the Bank has reduced the dividend received from its Indian subsidiaries, which are not the subsidiaries of any other company, on which dividend distribution tax has been paid by the subsidiaries as per the provisions of Section 115-O of the Income Tax Act, 1961.

24. Related Party Transactions

The Bank has transactions with its related parties comprising subsidiaries, associates/joint ventures/other related entities, key management personnel and relatives of key management personnel.

Subsidiaries

ICICI Bank UK PLC, ICICI Bank Canada, ICICI Bank Eurasia Limited Liability Company, ICICI Prudential Life Insurance Company Limited1, ICICI Lombard General Insurance Company Limited1, ICICI Prudential Asset Management Company Limited1, ICICI Securities Limited, ICICI Securities Primary Dealership Limited, ICICI Home Finance Company Limited,

ICICI Venture Funds Management Company Limited, ICICI International Limited, ICICI Trusteeship Services Limited, ICICI Investment Management Company Limited, ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Prudential Trust Limited1 and ICICI Prudential Pension Funds Management Company Limited1.

1. Jointly controlled entities.

Associates/joint ventures/other related entities

ICICI Equity Fund1, ICICI Eco-net Internet and Technology Fund1, ICICI Emerging Sectors Fund1, ICICI Strategic Investments Fund1, ICICI Kinfra Limited1, ICICI West Bengal Infrastructure Development Corporation Limited1 (upto December 31, 2010), Financial Inclusion Network & Operations Limited, TCW/ICICI Investment Partners Limited, I-Process Services (India) Private Limited, I-Solutions Providers (India) Private Limited3 (upto September 30, 2011), NIIT Institute of Finance, Banking and Insurance Training Limited, ICICI Venture Value Fund1, Comm Trade Services Limited, Prize Petroleum Company Limited (upto September 30, 2011), ICICI Foundation for Inclusive Growth, I-Ven Biotech Limited1, Rainbow Fund, ICICI Merchant Services Private Limited, Mewar Aanchalik Gramin Bank2.

1. Entities consolidated as per Accounting Standard (AS) 21 on 'consolidated financial statements'.

2. With respect to an entity, which has been identified as a related party during the three months ended September 30, 2010, transactions reported from the three months ended September 30, 2010.

3. I-Solutions Providers (India) Private Limited has been amalgamated with I-Process Services (India) Private Limited during the three months ended December 31, 2011.

Key management personnel

Ms. Chanda Kochhar, Mr. Sandeep Bakhshi1, Mr. N. S. Kannan, Mr. K. Ramkumar, Mr. Rajiv Sabharwal2, Mr. Sonjoy Chatterjee3.

Relatives of key management personnel

Mr. Deepak Kochhar, Mr. Arjun Kochhar, Ms. Aarti Kochhar, Mr. Mahesh Advani, Ms. Varuna Karna, Ms. Sunita Advani, Ms. Mona Bakhshi1, Mr. Sameer Bakhshi1, Ms. Rangarajan Kumudalakshmi, Ms. Aditi Kannan, Mr. Narayanan Raghunathan, Mr. Narayanan Rangarajan, Mr. Narayanan Krishnamachari, Ms. Narayanan Sudha, Mr. R. Shyam, Ms. R. Suchithra, Mr. K. Jayakumar, Ms. J. Krishnaswamy, Ms. Sangeeta Sabharwal2, Mr. Sanjiv Sabharwal2, Mr. Somnath Chatterjee3, Mr. Tarak Nath Chatterjee3, Ms. Sunaina Chatterjee3, Ms. Nandini Chatterjee3.

1. Transactions reported upto July 31, 2010.

2. Transactions reported with effect from June 24, 2010.

3. Transactions reported upto April 30, 2010.

The following were the significant transactions between the Bank and its related parties for the year ended March 31, 2012. A specific related party transaction is disclosed as a material related party transaction wherever it exceeds 10% of all related party transactions in that category.

Insurance services

During the year ended March 31, 2012, the Bank paid insurance premium to insurance subsidiaries amounting to Rs 957.9 million (March 31, 2011: Rs 1,529.7 million). The material transactions for the year ended March 31, 2012 were payment of insurance premium to ICICI Lombard General Insurance Company Limited amounting to Rs 775.8 million (March 31, 2011: Rs 1,380.8 million) and to ICICI Prudential Life Insurance Company Limited amounting to Rs 182.1 million (March 31, 2011: Rs 148.9 million).

During the year ended March 31, 2012, the Bank's insurance claims from the insurance subsidiaries amounted to Rs 411.5 million (March 31, 2011: Rs 945.5 million). The material transactions for the year ended March 31, 2012 were with ICICI Lombard General Insurance Company Limited amounting to Rs 355.2 million (March 31, 2011: Rs 906.5 million) and with ICICI Prudential Life Insurance Company Limited amounting to Rs 56.3 million (March 31, 2011: Rs 39.0 million).

Fees and commission income

During the year ended March 31, 2012, the Bank received fees from its subsidiaries amounting to Rs 3,841.2 million (March 31, 2011: Rs 2,809.5 million) and from its associates/joint ventures/other related entities amounting to Rs 19.9 million (March 31, 2011: Rs 0.8 million). The material transactions for the year ended March 31, 2012 were with ICICI Prudential Life Insurance Company Limited amounting to Rs 3,077.0 million (March 31, 2011: Rs 1,969.0 million), ICICI Lombard General Insurance Company Limited amounting to Rs 421.0 million (March 31, 2011: Rs 380.0 million) and with ICICI Securities Limited amounting to Rs 245.9 million (March 31, 2011: Rs 358.7 million).

During the year ended March 31, 2012, the Bank received commission on bank guarantees from its subsidiaries amounting to Rs 32.4 million (March 31, 2011: Rs 10.3 million). The material transactions for the year ended March 31, 2012 were with ICICI Bank UK PLC amounting to Rs 24.8 million (March 31, 2011: Rs 8.6 million), ICICI Bank Eurasia Limited Liability Company amounting to Rs 5.6 million (March 31, 2011: Rs 0.1 million) and with ICICI Securities Limited amounting to Rs 1.5 million (March 31, 2011: Rs 1.5 million).

Lease of premises, common corporate and facilities expenses

During the year ended March 31, 2012, the Bank recovered from its subsidiaries an amount of Rs 1,112.1 million (March 31, 2011: Rs 1,080.2 million) and from its associates/joint ventures/other related entities an amount of Rs 38.4 million (March 31, 2011: Rs 87.5 million) for lease of premises, common corporate and facilities expenses. The material transactions for the year ended March 31, 2012 were with ICICI Securities Limited amounting to Rs 272.0 million (March 31, 2011: Rs 234.5 million), ICICI Home Finance Company Limited amounting to Rs 258.6 million (March 31, 2011: Rs 241.1 million), ICICI Prudential Life Insurance Company Limited amounting to Rs 162.6 million (March 31, 2011: Rs 208.0 million), ICICI Lombard General Insurance Company Limited amounting to Rs 138.4 million (March 31, 2011: Rs 178.1 million) and with ICICI Bank UK PLC amounting to Rs 125.1 million (March 31, 2011: Rs 84.9 million).

Secondment of employees

During the year ended March 31, 2012, the Bank recovered towards deputation of employees from its subsidiaries an amount of Rs 37.9 million (March 31, 2011: Rs 29.1 million) and from its associates/joint ventures/other related entities an amount of Rs 7.0 million (March 31, 2011: Rs 40.0 million). The material transactions for the year ended March 31, 2012 were with ICICI Investment Management Company Limited amounting to Rs 28.2 million (March 31, 2011: Rs 19.5 million), ICICI Securities Limited amounting to Rs 11.4 million (March 31, 2011: Rs 12.1 million), I-Process Services (India) Private Limited amounting to Rs 7.0 million (March 31, 2011: Rs 3.8 million), ICICI Merchant Services Private Limited amounting to Nil (March 31, 2011: Rs 24.4 million) and with ICICI West Bengal Infrastructure Development Corporation Limited amounting to Nil (March 31, 2011: Rs 7.3 million).

Purchase of investments

During the year ended March 31, 2012, the Bank purchased certain investments from its subsidiaries amounting to Rs 5,757.0 million (March 31, 2011: Rs 4,200.0 million). The material transactions for the year ended March 31, 2012 were with ICICI Securities Primary Dealership Limited amounting to Rs 3,927.5 million (March 31, 2011: Rs 2,109.6 million) and with ICICI Prudential Life Insurance Company Limited amounting to Rs 1,675.4 million (March 31, 2011: Rs 1,991.4 million).

During the year ended March 31, 2012, the Bank invested in equity warrants of Financial Inclusion Network & Operations Limited amounting to Rs 40.0 million (March 31, 2011: Nil) and in the equity shares of ICICI Lombard General Insurance Company Limited amounting to Nil (March 31, 2011: Rs 2,516.0 million).

Sale of investments

During the year ended March 31, 2012, the Bank sold certain investments to its subsidiaries amounting to Rs 9,532.7 million (March 31, 2011: Rs 12,013.8 million) and to its associates/joint ventures/other related entities amounting to Rs 48.7 million (March 31, 2011: Nil). The material transactions for the year ended March 31, 2012 were with ICICI Prudential Life Insurance Company Limited amounting to Rs 5,097.7 million (March 31, 2011: Rs 3,074.9 million), ICICI Securities Primary Dealership Limited amounting to Rs 2,783.6 million (March 31, 2011: Rs 8,528.8 million) and with ICICI Lombard General Insurance Company Limited amounting to Rs 1,560.3 million (March 31, 2011: Rs 400.9 million).

Investment in Certificate of Deposits (CDs) issued by ICICI Bank

During the year ended March 31, 2012, subsidiaries have invested in CDs issued by the Bank amounting to Rs 4,622.5 million (March 31, 2011: Rs 4,820.9 million). The material transactions for the year ended March 31, 2012 were with ICICI Prudential Life Insurance Company Limited amounting to Rs 3,165.6 million (March 31, 2011: Rs 4,365.4 million) and with ICICI Securities Primary Dealership Limited amounting to Rs 1,002.5 million (March 31, 2011: Nil)

Redemption/buyback of investments

During the year ended March 31, 2012, the Bank received a consideration from its associates/joint ventures/other related entities amounting to Rs 1,396.8 (March 31, 2011: Rs 1,929.3 million) on account of redemption/buyback/distribution of gain/ loss on units/equity shares by associates/joint ventures/other related entities. The material transactions for the year ended March 31, 2012 were with ICICI Emerging Sectors Fund amounting to Rs 1,396.8 (March 31, 2011: Rs 389.2 million), ICICI Equity Fund amounting to Nil (March 31, 2011: Rs 1,336.9 million) and with ICICI Eco-net Internet and Technology Fund amounting to Nil (March 31, 2011: Rs 203.2 million).

Reimbursement of expenses to subsidiaries

During the year ended March 31, 2012, the Bank reimbursed expenses to its subsidiaries amounting to Rs 40.6 million (March 31, 2011: Rs 31.7 million). The material transactions for the year ended March 31, 2012 were with ICICI Bank UK PLC amounting to Rs 33.9 million (March 31, 2011: Rs 31.4 million) and with ICICI Bank Canada amounting to Rs 6.7 million (March 31, 2011: Rs 0.3 million)

Reimbursement of expenses to the Bank

During the year ended March 31, 2012, subsidiaries reimbursed expenses to the Bank amounting to Rs 19.0 million (March 31, 2011: Rs 45.5 million). The material transactions for the year ended March 31, 2012 were with ICICI Bank UK PLC amounting to Rs 13.4 million (March 31, 2011: Rs 40.3 million) and with ICICI Bank Canada amounting to Rs 5.4 million (March 31, 2011: Rs 5.2 million).

Brokerage, fees and other expenses

During the year ended March 31, 2012, the Bank paid brokerage, fees and other expenses to its subsidiaries amounting to Rs 491.5 million (March 31, 2011: Rs 658.7 million) and to its associates/joint ventures/other related entities amounting to Rs 1,832.5 million (March 31, 2011: Rs 1,405.4 million). The material transactions for the year ended March 31, 2012 were with ICICI Merchant Services Private Limited amounting to Rs 953.9 million (March 31, 2011: Rs 664.4 million), I-Process Services (India) Private Limited amounting to Rs 606.5 million (March 31, 2011: Rs 392.9 million), ICICI Home Finance Company Limited amounting to Rs 349.8 million (March 31, 2011: Rs 408.3 million), Financial Inclusion Network & Operations Limited amounting to Rs 259.0 million (March 31, 2011: Rs 340.3 million) and with ICICI Securities Limited amounting to Rs 116.1 million (March 31, 2011: Rs 207.3 million).

Income on custodial services

During the year ended March 31, 2012, the Bank recovered custodial charges from its subsidiaries amounting to Rs 3.5 million (March 31, 2011: Rs 1.6 million) and from its associates/joint ventures/other related entities amounting to Rs 1.4 million (March 31, 2011: Rs 2.6 million). The material transactions for the year ended March 31, 2012 were with ICICI Securities Primary Dealership Limited amounting to Rs 3.3 million (March 31, 2011: Rs 1.6 million), ICICI Strategic Investments Fund amounting to Rs 0.6 million (March 31, 2011: Rs 0.9 million), ICICI Equity Fund amounting to Rs 0.4 million (March 31, 2011: Rs 0.5 million) and with ICICI Emerging Sectors Fund amounting to Rs 0.2 million (March 31, 2011: Rs 0.9 million).

Interest expenses

During the year ended March 31, 2012, the Bank paid interest to its subsidiaries amounting to Rs 336.4 million (March 31, 2011: Rs 560.7 million), to its associates/joint ventures/other related entities amounting to Rs 160.5 million (March 31, 2011: Rs 79.7 million), to its key management personnel amounting to Rs 2.0 million (March 31, 2011: Rs 1.5 million) and to relatives of key management personnel amounting to Rs 1.1 million (March 31, 2011: Rs 0.7 million). The material transactions for the year ended March 31, 2012 were with ICICI Prudential Life Insurance Company Limited amounting to Rs 129.1 million (March 31, 2011: Rs 272.5 million), Mewar Aanchalik Gramin Bank amounting to Rs 128.9 million (March 31, 2011: Rs 69.7 million) and with ICICI Securities Limited amounting to Rs 111.6 million (March 31, 2011: Rs 157.2 million).

Interest income

During the year ended March 31, 2012, the Bank received interest from its subsidiaries amounting to Rs 1,686.8 million (March 31, 2011: Rs 1,579.1 million), from its associates/joint ventures/other related entities amounting to Rs 49.1 million (March 31, 2011: Rs 4.8 million), from its key management personnel amounting to Rs 0.5 million (March 31, 2011: Rs 0.4 million) and from relatives of key management personnel amounting to Rs 0.7 million (March 31, 2011: Rs 0.7 million). The material transactions for the year ended March 31, 2012 were with ICICI Home Finance Company Limited amounting to Rs 1,181.4 million (March 31, 2011: Rs 1,127.7 million) and with ICICI Bank Eurasia Limited Liability Company amounting to Rs 210.9 million (March 31, 2011: Rs 166.4 million).

Other income

The Bank undertakes derivative transactions with its subsidiaries, associates, joint ventures and other related entities. The Bank manages its foreign exchange and interest rate risks arising from these transactions by covering them in the market. During the year ended March 31, 2012, the net loss of the Bank on forex and derivative transactions entered with subsidiaries was Rs 337.3 million (March 31, 2011: loss of Rs 121.9 million). The material transactions for the year ended March 31, 2012 were loss of Rs 620.0 million (March 31, 2011: loss of Rs 167.5 million) with ICICI Bank UK PLC, gain of Rs 352.9 million (March 31, 2011: loss of Rs 13.9 million) with ICICI Bank Canada, loss of Rs 242.2 million (March 31, 2011: gain of Rs 371.7 million) with ICICI Securities Primary Dealership Limited, gain of Rs 168.4 million (March 31, 2011: loss of Rs 64.1 million) with ICICI Home Finance Company Limited and gain of Rs 3.6 million (March 31, 2011: loss of Rs 248.1 million) with ICICI Bank Eurasia Limited Liability Company. While the Bank within its overall position limits covers these transactions in the market, the above amounts represent only the transactions with its subsidiaries, associates, joint ventures and other related entities and not the offsetting/covering transactions.

Dividend income

During the year ended March 31, 2012, the Bank received dividend from its subsidiaries amounting to Rs 7,364.1 million (March 31, 2011: Rs 4,113.5 million). The material transactions for the year ended March 31, 2012 were with ICICI Prudential Life Insurance Company Limited amounting to Rs 2,321.7 million (March 31, 2011: Nil), ICICI Home Finance Company Limited amounting to Rs 1,714.1 million (March 31, 2011: Rs 1,499.8 million), ICICI Bank UK PLC amounting to Rs 1,216.9 million (March 31, 2011: Rs 185.1 million), ICICI Securities Limited amounting to Rs 520.1 million (March 31, 2011: Rs 810.0 million), ICICI Venture Funds Management Company Limited amounting to Rs 150.0 million (March 31, 2011: Rs 450.0 million) and with ICICI Lombard General Insurance Company Limited amounting to Nil (March 31, 2011: Rs 416.6 million).

Dividend paid

During the year ended March 31, 2012, the Bank paid dividend to its key management personnel amounting to Rs 4.5 million (March 31, 2011: Rs 4.2 million). The dividend paid during the year ended March 31, 2012 to Ms. Chanda Kochhar was Rs 3.8 million (March 31, 2011: Rs 3.2 million) and to Mr. N. S. Kannan was Rs 0.7 million (March 31, 2011: Rs 1.0 million). The dividend paid for the year ended March 31, 2011 to Mr. Sandeep Bakhshi was Rs 0.04 million.

Remuneration to whole-time directors

Remuneration paid to the whole-time directors of the Bank during the year ended March 31, 2012 was Rs 111.3 million (March 31, 2011: Rs 79.6 million). The remuneration paid for the year ended March 31, 2012 to Ms. Chanda Kochhar was Rs 37.7 million (March 31, 2011: Rs 25.2 million), to Mr. K. Ramkumar was Rs 25.4 million (March 31, 2011: Rs 17.6 million), to Mr. N. S. Kannan was Rs 25.0 million (March 31, 2011: Rs 15.8 million) and to Mr. Rajiv Sabharwal was Rs 23.2 million (March 31, 2011: Rs 9.0 million). The remuneration paid for the year ended March 31, 2011 to Mr. Sandeep Bakhshi was Rs 7.7 million and to Mr. Sonjoy Chatterjee was Rs 4.3 million.

Sale of fixed assets

During the year ended March 31, 2012, the Bank sold fixed assets to its subsidiaries amounting to Rs 18.4 million (March 31, 2011: Rs 0.9 million) and to its associates/joint ventures/other related entities amounting to Nil (March 31, 2011: Rs 2.8 million). The material transactions for the year ended March 31, 2012 were with ICICI Venture Funds Management Company Limited amounting to Rs 14.7 million (March 31, 2011: Nil), ICICI Lombard General Insurance Company Limited amounting to Rs 2.7 million (March 31, 2011: Nil), ICICI Securities Limited amounting to Rs 1.0 million (March 31, 2011: Rs 0.8 million) and with ICICI Merchant Services Private Limited amounting to Nil (March 31, 2011: Rs 2.8 million).

Purchase of fixed assets

During the year ended March 31, 2012, the Bank purchased fixed assets from its subsidiaries amounting to Rs 9.4 million (March 31, 2011: Rs 10.9 million). The material transactions for the year ended March 31, 2012 were with ICICI Lombard General Insurance Company Limited amounting to Rs 4.6 million (March 31, 2011: Nil), ICICI Prudential Life Insurance Company Limited amounting to Rs 4.2 million (March 31, 2011: Rs 0.1 million) and with ICICI Home Finance Company Limited amounting to Nil (March 31, 2011: Rs 9.9 million).

Sale of gold coins

During the year ended March 31, 2012, the Bank sold gold coins to ICICI Prudential Life Insurance Company Limited amounting to Rs 45.4 million (March 31, 2011: Rs 0.9 million).

Donation

During the year ended March 31, 2012, the Bank has given donation to ICICI Foundation for Inclusive Growth amounting to Rs 239.7 million (March 31, 2011: Rs 61.0 million).

Purchase of loan

During the year ended March 31, 2012, the Bank has purchased loans from ICICI Bank UK PLC amounting to Rs 12,870.5 million (March 31, 2011: Rs 688.7 million).

Sale of loan

During the year ended March 31, 2012, the Bank has sold a loan to ICICI Bank UK PLC amounting to Rs 2,543.8 million (March 31, 2011: Nil).

Purchase of bank guarantees

A bank guarantee facility provided by ICICI Bank UK PLC to one of its clients was transferred to the Bank amounting to Rs

1,279.2 million (March 31, 2011: Nil) during the year ended March 31, 2012.

ICICI Bank Canada to its independent directors for a sum not exceeding Canadian Dollar 2.5 million (currently equivalent to Rs 127.6 million) each, aggregating to Canadian Dollar 10 million (currently equivalent to Rs 510.4 million). The aggregate amount of Rs 915.2 million is included in the contingent liabilities.

As per the assessment done, there is no likely financial impact of the above letters issued to overseas regulators or of the indemnity agreements at March 31, 2012.

In addition to the above, the Bank has also issued letters of comfort in the nature of letters of awareness on behalf of banking and non-banking subsidiaries in respect of their borrowings made or proposed to be made and for other incidental business purposes. As they are in the nature of factual statements or confirmation of facts, they do not create any financial impact on the Bank.

The letters of comfort in the nature of letters of awareness that are outstanding at March 31, 2012 issued by the Bank on behalf of its subsidiaries, aggregate to Rs 24,238.9 million (March 31, 2011: Rs 40,240.9 million). During the year ended March 31, 2012, borrowings pertaining to letters of comfort aggregating Rs 13,640.3 million were repaid and a letter was withdrawn pertaining to facilities amounting to Rs 2,675.7 million.

As advised by RBI, the Bank has provided additional capital of Rs 1,033.5 million (March 31, 2011: Rs 1,700.5 million) on the letters of comfort that are in the nature of letters of awareness issued on behalf of its subsidiaries for their borrowing programmes.

1. Excludes mark-to-market on outstanding derivative transactions.

2. During the year ended March 31, 2012, 86,500 employee stock options were exercised, which have been reported at face value.

1. Excludes mark-to-market on outstanding derivative transactions.

2. During the year ended March 31, 2011, no employee stock options were exercised.

The following table sets forth, the maximum balance payable to/receivable from subsidiaries/joint ventures/associates/ other related entities/key management personnel and relatives of key management personnel during the year ended March 31, 2011.

25. Small and micro enterprises

Under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which came into force from October 2, 2006, certain disclosures are required to be made relating to enterprises covered under the Act. During the year ended March 31, 2012, the amount paid after the due date to vendors registered under the MSMED Act, 2006 was Rs 7.1 million (March 31, 2011: Rs 17.9 million). An amount of Rs 0.1 million (March 31, 2011: Rs 0.7 million) has been charged to profit & loss account towards accrual of interest on these delayed payments.

26. Penalties/fines imposed by RBI and other banking regulatory bodies

The penalty imposed by RBI and other banking regulatory bodies during the year ended March 31, 2012 was Rs 1,510,000 (March 31, 2011: Rs 510,000). RBI imposed a penalty of Rs 1,500,000 in April 2011 on the Bank towards non-compliance of certain instructions issued by RBI in respect of derivative business and in February 2012, RBI imposed a penalty of Rs 10,000 under section 11(3) of FEMA, 1999 with regard to delay in reporting a FDI transaction. The Bank has paid the penalties to RBI.

27. Drawdown from reserves

There has been no draw down from reserves during the year ended March 31, 2012 (March 31, 2011: Rs 1,160.0 million from investment reserve account).

28. Comparative figures

Figures of the previous year have been re-grouped to conform to the current year presentation.


Mar 31, 2011

The following additional disclosures have been made taking into account the requirements of Accounting Standards (ASs) and Reserve Bank of India (RBi) guidelines in this regard.

1. Amalgamation of The Bank of Rajasthan Limited

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 RBI 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 ofRs. 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.

ICICI Bank is also a banking company incorporated under the Companies Act, 1956 and licensed by RBI under the Banking Regulation Act, 1949.

As per the Scheme, the undertaking of Bank of Rajasthan including all its assets and liabilities stood transferred/deemed to be transferred to and vested in ICICI Bank as a going concern.

The amalgamation has been accounted for as per the Scheme. Accordingly, the assets and liabilities of Bank of Rajasthan have been accounted at the values at which they were appearing in the books of Bank of Rajasthan at August 12, 2010 and provisions were made for the difference between the book values appearing in the books of Bank of Rajasthan and the fair value as determined by ICICI Bank.

In the books of ICICI Bank, an amalgamation expenses provision account was credited by an amount determined for the expenses and costs of the Scheme arising as a direct consequence on account of any changes in the business or operations of Bank of Rajasthan proposed or considered necessary by the Board of Directors of ICICI Bank (including but not limited to rationalisation, upgradation and enhancement of human resources and expenses relating to modifying signage, modifying stationery, branding, changing systems and network, communication including media costs, impairment of technology and fixed assets, conducting general meetings, payment of listing fees and other statutory and regulatory charges, travel in relation to the consolidation contemplated in the Scheme, valuation, due diligence, investment banking expenses and charges relating to preparation of the Scheme, consultations in relation to the consolidation contemplated in the Scheme and training), and other extraordinary expenses on integration and consolidation under the Scheme, to be incurred by ICICI Bank and the balance in such account has been debited to the securities premium account.

2. Earnings per share

Basic and diluted earnings per equity share are computed in accordance with AS 20 - Earnings per share. Basic earnings per equity share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. The diluted earnings per equity share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

4. Capital adequacy ratio

The Bank is subject to the Basel If capital adequacy guidelines stipulated by the Reserve Bank of India (RBI) with effect j from March 31, 2008. The RBI guidelines on Basel II require the Bank to maintain a minimum capital to risk-weighted | assets ratio (CRAR) of 9.0% and a minimum Tier-1 CRAR of 6.0% on an ongoing basis.

RBI has also stipulated that banks shall maintain capital at higher of the minimum capital required as per Basel U or 80% of the minimum capital required as per Basel I. At March 31, 2011, the prudential floor at 80% of the minimum capital ! requirement under Basel I was Rs. 283,837.8 million and was lower than the minimum capital requirement of Rs. 307,348.2 million under Basel II. Hence, the Bank has maintained capital adequacy at March 31, 2011 as per the Basel II norms.

S. Information about business and geographical segments

Business Segments

Pursuant to the guidelines issued by RBI on Accounting Standard 17-(Segment Reporting) -Enhancement of Disclosures dated April 18, 2007, effective from year ended March 31, 2008, the following business segments have been reported.

- 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".

- Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, which are not included under Retail Banking.

- Treasury includes the entire investment portfolio of the Bank.

- Other Banking includes hire purchase and leasing operations and other items not attributable to any particular business segment.

Income, expenses, assets and liabilities are either specifically identified with individual segments or are allocated to segments on a systematic basis.

All liabilities are transfer priced to a central treasury unit, which pools all funds and lends to the business units at appropriate rates based on the relevant maturity of assets being funded after adjusting for regulatory reserve requirements.

7. Preference shares

Certain government securities amounting to Rs. 2,563.8 million at March 31, 2011 (March 31, 2010: Rs. 2,405.2 million) have been earmarked against redemption of preference shares issued by the Bank, which fall due for redemption on April 20, 2018, as per the original issue terms.

8. Employee Stock Option Scheme (ESOS)

In terms of the ESOS, as amended, the maximum number of options granted to any eligible employee in a financial year shall not exceed 0.05% of the issued equity shares of the Bank at the time of grant of the options and aggregate of all such options granted to the eligible employees shall not exceed 5% of the aggregate number of the issued equity shares of the Bank on the date(s) of the grant of options. Under the stock option scheme, eligible employees are entitled to apply for equity shares. Options granted for fiscal 2003 and earlier years vest in a graded manner over a three-year period, with 20%, 30% and 50% of the grants vesting in each year commencing from the end of 12 months from the date of grant. Options granted for fiscal 2004 to 2008 vest in a graded manner over a four-year period, With 20%, 20%, 30% and 30% of the grants vesting in each year commencing from the end of 12 months from the date of grant. Options granted in April 2009 vest in a graded manner over a five year period with 20%, 20%, 30% and 30% of grant vesting each year, commencing from the end of 24 months from the date of grant. Options granted in March 2010 onwards would vest in a graded manner over a four year period with 20%, 20%, 30% and 30% of grant vesting each year, commencing from the end of 12 months from the date of grant. The options can be exercised within 10 years from the date of grant or five years from the date of vesting, whichever is later. As per the scheme, the exercise price of ICICI Banks options is the last closing price on the stock exchange, which recorded highest trading volume preceding the date of grant of options. Hence, there was no compensation cost based on intrinsic value of options.

In February 2011, the Bank granted 3,035,000 options to eligible employees and whole-time Directors of ICICI Bank and certain of its subsidiaries at an exercise price of Rs. 967. Of these options granted, 50% would vest on April 30, 2014 and the balance 50% would vest on April 30, 2015. Based on intrinsic value of options, compensation cost of Rs. 2.9 million was recognised during the year ended March 31, 2011.

9. Reconciliation of nostro account

In terms of RBI circular no. DBOD.BRBC.No. 133/21.04.018/2008-09 dated May 11, 2009, Rs. 2.6 million (March 31, 2010: Rs. 10.4 million) representing outstanding credit balances of individual value less than US$ 2,500 or equivalent lying in nostro account, which were originated up to March 31, 2002, was transferred to profit and loss account during the year ended March 31, 2011 and has been subsequently appropriated to General Reserve.

11. Repurchase transactions

Till March 31, 2010, the Bank used to account for market repurchase and reverse repurchase transactions in government securities and corporate debt securities, if any, as "sale and repurchase" transactions. However, as per RBI circular no. RBI/2009-2010/356 IDMD/ 4135/11.08.43/2009-10 dated March 23, 2010, the Bank has started accounting for such transactions as "borrowing and lending" transactions, effective April 1, 2010. If the Bank had continued to account the repurchase and reverse repurchase transactions as "sale and repurchase" at March 31, 2011, the investments would have been higher by Rs. 122.8 million and the Balances with Banks and Money at call and short notice and Borrowings would have been lower by Rs. 124.0 million and f 1.2 million respectively.

14. Settlement date accounting for government securities

Pursuant to RBI circular DBOD.No.BRBC.58/21.04.141/2010-11 dated November 4, 2010, the Bank has changed the accounting for purchase and sale of government securities from trade date basis to settlement date basis with effect from January 1, 2011. Under settlement date accounting, the purchase and sale of securities are recognised in the books on the date of settlement. The changes in fair value of investments between trade date and settlement date are recognised in case of purchased securities while such changes are ignored in case of securities sold. In case the Bank had continued to follow the trade date accounting, investments portfolio at March 31, 2011 would have been lower by Rs. 655.2 million (net), the other assets would have been higher by Rs. 1,153.6 million, other liabilities would have been higher by Rs. 500.2 million and the impact on the profit and loss account would have been Rs. Nil.

15. CBLO transactions

Collateralised Borrowing and Lending Obligation (CBLO) is a discounted money market instrument, developed by The Clearing Corporation of India Limited (CCIL) and approved by RBI which involves secured borrowings and lending transactions. At March 31, 2011, the Bank had outstanding borrowings amounting to Nil (March 31, 2010: Nil) and outstanding lending ofRs. 1,999.6 million (March 31, 2010: Nil) in the form of CBLO. The amortised book value of securities given as collateral by the Bank to CCIL for availing the CBLO facility was Rs. 51,841.1 million at March 31, 2011 (March 31, 2010:Rs. 44,699.4 million).

16. Derivatives

ICICI Bank is a major participant in the financial derivatives market. The Bank deals in derivatives for balance sheet management and market making purposes whereby the Bank offers derivative products to its customers, enabling them to hedge their risks.

Dealing in derivatives is carried out by identified groups in the treasury of the Bank based on the purpose of the transaction. Derivative transactions are entered into by the treasury front office. Treasury middle office conducts an independent check of the transactions entered into by the front office and also undertakes activities such as confirmation, settlement, accounting, risk monitoring and reporting and ensures compliance with various internal and regulatory guidelines.

The market making and the proprietary trading activities in derivatives are governed by the Investment Policy and the Derivative Policy of the Bank, which lay down the position limits, value at risk limits, stop loss limits as well as other risk limits. The Risk Management Group (RMG) lays down the methodology for computation and monitoring of risk. The Risk Committee of the Board (RCB) reviews the Banks risk management policies in relation to various risks including Credit and recovery policy. Investment Policy, Derivative Policy, ALM Policy and Operational Risk Management Policy. The RCB comprises independent directors and the Managing Director and CEO.

The Bank measures and monitors risk of its derivatives portfolio using such risk metrics as Value at Risk (VAR), stop loss limits and relevant greeks for options. Risk reporting on derivatives forms an integral part of the management information system.

The use of derivatives for hedging purposes is governed by the hedge policy approved by Asset Liability Management Committee (ALCO). Subject to prevailing RBI guidelines, the Bank deals in derivatives for hedging fixed rate, floating rate or foreign currency assets/liabilities. Transactions for hedging and market making purposes are recorded separately. For hedge transactions, the Bank identifies the hedged item (asset or liability) at the inception of the hedge itself. The effectiveness is assessed at the time of inception of the hedge and periodically thereafter.

Hedge derivative transactions are accounted for pursuant to the principles of hedge accounting. Derivatives for market making purpose are marked to market and the resulting gain/loss is recorded in the profit and loss account. The premium on option contracts is accounted for as per Foreign Exchange Dealers Association of India (FEDAI) guideline.

Derivative transactions are covered under International Swaps and Derivatives Association (ISDA) master agreements with the respective counter parties. The exposure on account of derivative transactions is computed as per RBI guidelines and is marked against the credit limits approved for the respective counter-parties.

The Bank has exposure to credit derivative instruments including credit default swaps, credit linked notes, collateralised debt obligations and principal protected structures. The notional principal amount of these credit derivatives outstanding at March 31, 2011 was Rs. 10,599.7 million (March 31, 2010: Rs. 15,400.7 million) in funded instruments and Rs. 28,168.2 million (March 31, 2010: Rs. 32,881.1 million) in non-funded instruments which includes Rs. 223.0 million (March 31, 2010: Rs. 224.5 million) of protection bought by the Bank.

The profit and loss impact on the above portfolio on account of mark-to-market and realised gains/losses during the year ended March 31, 2011 was a net profit of Rs. 94.6 million (March 31, 2010: Rs. 3,974.2 million). At March 31, 2011, the total outstanding mark-to-market position of the above portfolio was a net loss of Rs. 527.9 million (March 31, 2010: Rs. 610.1 million). The credit derivatives are marked to market by the Bank based on counter-party valuation quotes, or internal models using inputs from market sources such as Bloomberg/Reuters, counter-parties and FIMMDA.

The Bank offers deposits to customers of its offshore branches with structured returns linked to interest, forex, credit or equity benchmarks. The Bank covers these exposures in the inter-bank market. At March 31, 2011, the net open position on this portfolio was Nil (March 31, 2010: 7 32.6 million) with mark-to-market gain of Rs. 27.8 million (March 31, 2010: Rs. 3.0 million). The profit and loss impact on account of mark-to-market and realized profit and loss during the year ended March 31, 2011 was a net profit of Rs. 57.6 million.

The notional principal amount of forex contracts classified as non-trading at March 31, 2011 amounted to Rs. 340,828.8 million (March 31, 2010: Rs. 182,911.8 million). The notional principal amount of forex contracts classified as trading at March 31, 2011 amounted to Rs. 2,127,789.6 million (March 31, 2010: Rs. 1,477,775.4 million). The net overnight open position at March 31, 2011 was Rs. 502.1 million (March 31, 2010: Rs. 293.2 million).

20. Provision on standard assets

The Bank makes provision on standard assets as per applicable RBI guidelines.

The Bankhasnotwrittenbackanystandardassetprovistonpursuantto the RBIcircular no. DBOD.BRBC. 83/21.01.002/2008-09 dated November 15,2008. The provision on standard assets held by the Bank at March 31,2011 (including Rs. 435.4 million on account of amalgamation of Bank of Rajasthan) was Rs. 14,796.0 million (March 31, 2010: Rs. 14,360.6 million).

21. Provision Coverage Ratio

The provision coverage ratio of the Bank at March 31, 2011 computed as per the RBI circular dated December 1, 2009 is 76.0% (March 31, 2010: 59.5%).

22. Farm loan waiver

The Ministry of Finance, Government of India had issued guidelines for the implementation of the Agriculture debt waiver and relief scheme for farmers on May 23, 2008. The Bank has implemented the scheme as per guidelines issued by RBI circular DBOD No.BRBC. 26/21.04.048/2008-09 dated July 30, 2008 on "Agricultural Debt Waiver and Debt Relief Scheme, 2008 - Prudential norms on income recognition, asset classification and provisioning and Capital Adequacy".

Pursuant to the Scheme, an aggregate amount of Rs. 2,763.3 million (March 31, 2010: Rs. 2,758.1 million) has been waived which is recoverable from Government of India. Of the above, an amount of Rs. 2,757.5 million has been received by March 31, 2011 (March 31, 2010: Rs. 1,220.8 million) and balanceRs. 5.8 million (March 31, 2010: Rs. 1,537.3 million) is receivable in future.

At August 12, 2010, erstwhile Bank of Rajasthan had an aggregate amount of Rs. 32.0 million which was recoverable from Government of India. Of the above, an amount of Rs. 31.4 million has been received by March 31, 2011 and balance Rs. 0.6 million is receivable in future.

24. Financial assets transferred during the year to securitisation company (SC)/reconstruction company (RC)

The Bank has transferred certain assets to Asset Reconstruction Companies (ARCs) in terms of the guidelines issued by RBI governing such transfer. For the purpose of the valuation of the underlying security receipts issued by the underlying trusts managed by ARCs, the security receipts are valued at their respective NAVs as advised by the ARCs.

27. Floating provision

The Bank holds floating provision of Rs. 1.9 million at March 31, 2011 which was taken over from erstwhile Bank of Rajasthan on amalgamation.

29. Lending to sensitive sectors

The Bank has lending to sectors, which are sensitive to asset price fluctuations. The sensitive sectors include capital markets and real estate.

30. Risk category-wise country exposure

As per the extant RBI guidelines, the country exposure of the Bank is categorised into various risk categories listed in the following table. The funded country exposure (net) of the Bank as a percentage of total funded assets for United Kingdom was 1.32% (March 31, 2010: 1.44%) and Canada was 0.99% (March 31, 2010: 1.11%). As the net funded exposure to United Kingdom exceeds 1.0% of total funded assets, the Bank has made a provision of Rs. 140.0 million on country exposure at March 31, 2011 (March 31,2010: Rs. 235.0 million) based on RBI guidelines.

31. Details of Single Borrower Limit and Borrower Group Limit exceeded by the Bank

During the year ended March 31, 2011, the Bank has complied with the Reserve Bank of India guidelines on single borrower and borrower group limit. As per the exposure limits permitted under the extant RBI regulation, the Bank with the approval of the Board of Directors can enhance exposure to a single borrower or borrower group by a further 5 percent of capital funds. During the year ended March 31, 2011, with the prior approval of the Board of Directors, the Bank exceeded the single borrower limit of 15% of capital funds to Reliance Industries Limited. At March 31, 2011, the exposure to Reliance Industries Limited as a percentage of capital funds was 12.4%.

32. Unsecured advances against intangible assets

The Bank has made advances against intangible collaterals of the borrowers which are classified as unsecured in its financial statements. At March 31, 2011, the amount of such advances was Nil (March 31, 2010: Nil) and the estimated value of the intangible collaterals was Nil (March 31, 2010: Nil).

35. Description of contingent liabilities

The following table describes the nature of contingent liabilities of the Bank.

1. Claims against the Bank, not acknowledged as debts

This item represents demands made in certain tax and legal matters against the Bank in the normal course of business. In accordance with the Banks accounting policy and Accounting Standard 29, the Bank has reviewed the demands and classified such disputed tax issues as possible obligation based on legal opinion/judicial precedents. No provision in excess of provisions already made in the financial statements is considered necessary.

2. Liability for partly paid investments

This item represents amounts remaining unpaid towards purchase of investments. These payment obligations of the Bank do not have any profit/loss impact.

3. Liability on account of outstanding forward exchange contracts

The Bank enters into foreign exchange contracts in its normal course of business, to exchange currencies at a pre-fixed price at a future date. This item represents the notional principal amount of such contracts, which are derivative instruments. With respect to the transactions entered into with its customers, the Bank generally enters into off-setting transactions in the inter-bank market. This results in generation of a higher number of outstanding transactions, and hence a large value of gross notional principal of the portfolio, while the net market risk is lower.

4 Guarantees given on behalf of constituents, acceptances, endorsements and other obligations

This item represents the guarantees and documentary credits issued by the Bank in favour of third parties on behalf of its customers, as part of its trade finance banking activities, with a view to augment the customers credit standing. Through these instruments, the Bank undertakes to make payments for its customers obligations, either directly or in case of failure of the customers to fulfil their financial or performance obligations.

5 Currency swaps, interest rate swaps, currency options and interest rate futures

This item represents the notional principal amounts of various derivative instruments which the Bank undertakes in its normal course of business. The Bank offers these products to its customers to enable them to transfer, modify or reduce their foreign exchange and interest rate risks. The Bank also undertakes these contracts to manage its own interest rate and foreign exchange positions. With respect to the transactions entered into with its customers, the Bank generally enters into off-setting transactions in the inter-bank market. This results in generation of a higher number of outstanding transactions, and hence a large value of gross notional principal of the portfolio, while the net market risk is lower.

6 Other items for which the Bank is contingently liable

Other items for which the Bank is contingently liable include primarily the securitisation and notional principal amounts of credit derivatives. The Bank is also obligated under a number of capital contracts. Capital contracts are job orders of a capital nature which have been committed. This item also includes the amount of Government securities bought/sold and remaining to be settled on the date of the financials statements.

37. Transfer of merchant acquiring operations

During the year ended March 31, 2010, the Bank and First Data, a global company engaged in electronic commerce and payment services, formed a merchant acquiring alliance and a new entity, 81.0% owned by First Data, was formed, which has acquired ICICI Banks merchant acquiring operations through transfer of assets, primarily comprising fixed assets and receivables, and assumption of liabilities, for a total consideration of Rs. 3,744.0 million. This transfer of assets and liabilities to the new entity would be considered a slump sale for tax purposes. The Bank realised a profit of Rs. 2,029.0 million from this transaction, which is included in Schedule 14 - "Other income" for the year ended March 31, 2010.

41. Provision for income tax

The provision for income tax (including deferred tax) for the year ended March 31, 2011 amounted to Rs. 16,063.3 million (March 31, 2010: Rs. 13,173.4 million).

The Bank has a comprehensive system of maintenance of information and documents required by transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. The Bank is of the opinion that all international transactions are at arms length so that the above legislation will not have material impact on the financial statements.

43. Dividend distribution tax

For the purpose of computation of dividend distribution tax on the proposed dividend, the Bank has reduced the dividend received from its Indian subsidiaries, which are not the subsidiaries of any other company, on which dividend distribution tax has been paid by the subsidiaries as per the provisions of Section 115-0 of the Income Tax Act, 1961.

44. Related party transactions

The Bank has transactions with its related parties comprising subsidiaries, associates/joint ventures/other related entities, key management personnel and relatives of key management personnel.

Subsidiaries

ICICI Bank UK PLC, ICICI Bank Canada, ICICI Bank Eurasia Limited Liability Company, ICICI Prudential Life Insurance Company Limited1, ICICI Lombard General Insurance Company Limited1, ICICI Prudential Asset Management Company Limited1, ICICI Securities Limited, ICICI Securities Primary Dealership Limited, ICICI Home Finance Company Limited, ICICI Venture Funds Management Company Limited, ICICI International Limited, ICICI Trusteeship Services Limited, ICICI Investment Management Company Limited, ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Prudential Trust Limited1, ICICI Wealth Management Inc. (upto December 31, 2009) and ICICI Prudential Pension Funds Management Company Limited.

1. Jointly controlled entities.

Associates/joint ventures/other related entities

ICICI Equity Fund1, ICICI Eco-net Internet and Technology Fund1, ICICI Emerging Sectors Fund1, ICICI Strategic Investments Fund1, ICICI Kinfra Limited1, ICICI West Bengal Infrastructure Development Corporation Limited1 (upto December 31, 2010), Financial Inclusion Network & Operations Limited (earlier known as Financial Information Network & Operations Limited), TCW/ ICICI Investment Partners Limited (earlier known as TCW/ICICI Investment Partners LLC), l-Process Services (India) Private Limited, l-Solutions Providers (India) Private Limited, NUT Institute of Finance, Banking and Insurance Training Limited, ICICI Venture Value Fund1, Comm Trade Services Limited, Loyalty Solutions & Research Limited1 (upto March 31, 2010), Transafe Services Limited1 (upto September 30, 2009), Prize Petroleum Company Limited, ICICI Foundation for Inclusive Growth, Firstsource Solutions Limited (upto December 31, 2009), l-Ven Biotech Limited1, Rainbow Fund, ICICI Merchant Services Private Limited and Mewar Aanchalik Gramin Bank2.

1. Entities consolidated as per Accounting Standard (AS) 21 on consolidated financial statements.

2. With respect to an entity, which has been identified as a related party during the year ended March 31, 2011, previous years comparative figures have not been reported.

Key management personnel

Mr. K. V. Kamath1, Ms. Chanda Kochhar, Mr. Sandeep Bakhshi2, Mr. N. S. Kannan3, Mr. K. Ramkumar, Mr. Rajiv Sabharwal4, Mr. Sonjoy Chatterjee*, Mr. V. Vaidyanathan1.

Relatives of key management personnel

Ms. Rajalakshmi Kamath, Mr. Ajay Kamath1, Ms. Ajnya Pai Mr. Mohan Kamath, Mr. Deepak Kochhar, Mr. Arjun Kochhar, Ms. Aarti Kochhar, Mr. Mahesh Advani, Ms. Varuna Kama, Ms. Sunita R. Advani, Ms. Mona Bakhshi2, Mr. Sameer Bakhshi2, Ms. Rangarajan Kumudalakshmi3, Ms. Aditi Kannan3, Mr. Narayanan Raghunathan3, Mr. Narayanan Rangarajan3, Mr. Narayanan Krishnamachari3, Ms. Narayanan Sudha3, Mr. R. Shyam, Ms. R. Suchithra, Mr. K. Jayakumar, Ms. J. Krishnaswamy, Ms. Sangeeta Sabharwal", Mr. Somnath Chatterjee5, Mr. Tarak Nath Chatterjee5, Ms. Sunaina Chatterjee5, Ms. Nandini Chatterjee5, Ms. Jeyashree V1, Mr. V. Satyamurthy1, Mr. V. Krishnamurthy1, Mr. K. Vembu1.

1. Transactions reported upto April 30, 2009.

2. Transactions reported with effect from May 1, 2009 upto July 31, 2010.

3. Transactions reported with effect from May 1, 2009.

4. Transactions reported with effect from June 24, 2010.

5. Transactions reported upto April 30, 2010.

The following were the significant transactions between the Bank and its related parties for the year ended March 31, 2011. A specific related party transaction is disclosed as a material related party transaction wherever it exceeds 10% of all related party transactions in that category.

Insurance services

During the year ended March 31, 2011, the Bank paid insurance premium to insurance subsidiaries amounting to Rs. 1,529.7 million (March 31, 2010: Rs. 1,162.5 million). The material transaction for the year ended March 31, 2011 was payment of insurance premium to ICICI Lombard General Insurance Company Limited amounting to Rs. 1,380.8 million (March 31, 2010: Rs. 1,057.3 million).

During the year ended March 31, 2011, the Banks insurance claims from the insurance subsidiaries amounted to Rs. 945.5 million (March 31, 2010: Rs. 876.1 million). The material transaction for the year ended March 31, 2011 was with ICICI Lombard General Insurance Company Limited amounting to Rs. 906.5 million (March 31, 2010: Rs. 823.0 million).

Fees and commission income

During the year ended March 31, 2011, the Bank received fees from its subsidiaries amounting to Rs. 2,809.5 million (March 31, 2010: Rs. 3,793.9 million), from its associates/joint ventures/other related entities amounting to Rs. 0.8 million (March 31, 2010: Rs. 5.3 million), from key management personnel amounting to Nil (March 31, 2010: Rs. 0.2 million) and from relatives of key management personnel amounting to Nil (March 31, 2010: Rs. 0.1 million). The material transactions for the year ended March 31, 2011 were with ICICI Prudential Life Insurance Company Limited amounting to Rs. 1,969.0 million (March 31, 2010: f 2,708.9 million), ICICI Lombard General Insurance Company Limited amounting to Rs. 380.0 million (March 31, 2010: Rs. 403.5 million) and with ICICI Securities Limited amounting to Rs.358.7 million (March 31, 2010: Rs. 437.4 million).

During the year ended March 31,2011, the Bank received commission on bank guarantees from its subsidiaries amounting to Rs. 10.3 million (March 31, 2010: Rs. 8.1 million) and from its associates/joint ventures/other related entities amounting to Nil (March 31, 2010: Rs. 15.4 million). The material transactions for the year ended March 31,2011 were with ICICI Bank UK PLC amounting to Rs. 8.6 mill ion (March 31, 2010.* Rs. 0.7 million), ICICI Securities Limited amounting to Rs. 1.5 million (March 31, 2010: Rs. 1.2 million), ICICI Home Finance Company Limited amounting to Nil (March 31, 2010: Rs. 5.7 million) and with Firstsource Solutions Limited amounting to Nil (March 31, 2010: Rs. 15.3 million).

Lease of premises and facilities

During the year ended March 31, 2011, the Bank recovered from its subsidiaries an amount of Rs. 1,080.2 million (March 31, 2010: Rs. 1,324.6 million) and from its associates/joint ventures/other related entities an amount of
Secondment of employees

During the year ended March 31, 2011, the Bank received compensation from its subsidiaries amounting to Rs. 29.1 million (March 31, 2010: Rs. 24.8 million) and from its associates/joint ventures/other related entities amounting to Rs. 40.0 million (March 31, 2010: Rs. 36.8 million) for secondment of employees. The material transactions for the year ended March 31, 2011 were with ICICI Merchant Services Private Limited amounting to Rs. 24.4 million (March 31,2010: Rs. 22.5 million), ICICI Investment Management Company Limited amounting toRs. 19.5 million (March 31, 2010:Rs. 11.9 million), ICICI Securities Limited amounting to Rs. 12.1 million (March 31, 2010: Rs. 13.0 million) and with ICICI West Bengal Infrastructure Development Corporation Limited amounting to Rs. 7.3 million (March 31, 2010: Rs. 9.8 million).

Purchase of investments

During the year ended March 31, 2011, the Bank purchased certain investments from its subsidiaries amounting to Rs. 4,200.0 million (March 31, 2010: Rs. 6,355.0 million). The material transactions for the year ended March 31, 2011 were with ICICI Securities Primary Dealership Limited amounting to Rs. 2,109.6 million (March 31, 2010: Rs. 5,414.1 million) and with ICICI Prudential Life Insurance Company Limited amounting to Rs. 1,991.4 million (March 31, 2010: Rs. 704.7 million).

During the year ended March 31, 2011, the Bank invested in the equity shares, preference shares and bonds of its subsidiaries amounting to Rs. 2,516.0 million (March 31, 2010: Rs. 32.1 million) and in its associates/joint ventures/other related entities amounting to Nil (March 31, 2010: Rs. 765.3 million). The material transactions for the year ended March 31, 2011 were with ICICI Lombard General Insurance Company Limited amounting to Rs. 2,516.0 million (March 31, 2010: Nil) and with ICICI Merchant Services Private Limited amounting to Nil (March 31, 2010: Rs. 755.8 million).

At March 31, 2010, ICICI Bank had applied for equity shares in ICICI Securities Limited, which were allotted during the year ended March 31, 2011. The amount of application money was Rs. 1,000.0 million.

Sale of investments

During the year ended March 31, 2011, the Bank sold certain investments to its subsidiaries amounting to Rs. 12,013.8 million (March 31, 2010: Rs. 3,646.0 million). The material transactions for the year ended March 31, 2011 were with ICICI Securities Primary Dealership Limited amounting to Rs. 8,528.8 million (March 31, 2010: Rs. 2,408.8 million) and with ICICI Prudential Life Insurance Company Limited amounting to Rs. 3,074.9 million (March 31, 2010: Rs. 1,237.2 million).

Investment in bonds and Certificate of Deposits (CDs) issued by ICICI Bank

During the year ended March 31, 2011, subsidiaries have invested in bonds issued by the Bank amounting to Nil (March 31, 2010: Rs. 650.0 million). The material transactions for the year ended March 31, 2011 were with ICICI Securities Primary Dealership Limited amounting to Nil (March 31, 2010: Rs. 150.0 million) and with ICICI Prudential Life Insurance Company Limited amounting to Nil (March 31, 2010: Rs. 500.0 million).

During the year ended March 31, 2011, subsidiaries have invested in CDs issued by the Bank amounting to Rs. 4,820.9 million (March 31, 2010: Rs. 11,173.9 million). The material transactions for the year ended March 31, 2011 were with ICICI Prudential Life Insurance Company Limited amounting to f 4,365.4 million (March 31, 2010: Rs. 8,131.2 million) and with ICICI Securities Primary Dealership Limited amounting to Nil (March 31, 2010: Rs. 2,338.6 million).

Redemption/buyback and conversion of investments

During the year ended March 31, 2011, the Bank received a consideration from its associates/joint ventures/other related entities amounting to Rs.1,929.3 million (March 31, 2010: Rs. 1,379.9 million) on account of redemption/buyback/ distribution of loss on units/equity shares by associates/joint ventures/other related entities. The material transactions for the year ended March 31, 2011 were with ICICI Emerging Sectors Fund amounting to Rs. 389.2 million (March 31, 2010: Rs. 846.4 million), ICICI Equity Fund amounting to Rs. 1,336.9 million (March 31, 2010: Nil) and with ICICI Eco-net Internet and Technology Fund . amounting to Rs. 203.2 million (March 31, 2010: Rs. 533.5 million).

Reimbursement of expenses to subsidiaries

During the year ended March 31, 2011, the Bank reimbursed expenses to its subsidiaries amounting to Rs. 31.7 million (March 31, 2010: Rs. 51.9 million). The material transactions for the year ended March 31, 2011 were with ICICI Bank UK PLC amounting to Rs. 31.4 million (March 31, 2010: Rs. 40.2 million) and with ICICI Bank Canada amounting to Rs. 0.3 million (March 31, 2010: Rs. 11.7 million).

Reimbursement of expenses to the Bank

During the year ended March 31, 2011, subsidiaries reimbursed expenses to the Bank amounting to Rs. 45.5 million (March 31, 2010: Rs. 169.3 million). The material transactions for the year ended March 31, 2011 were with ICICI Bank UK PLC amounting to Rs. 40.3 million (March 31, 2010: Rs. 160.1 million) and with ICICI Bank Canada amounting to Rs. 5.2 million (March 31, 2010: Rs. 9.2 million).

Brokerage and fee expenses

During the year ended March 31, 2011, the Bank paid brokerage/fees to its subsidiaries amounting to Rs. 658.7 million (March 31, 2010: Rs. 825.3 million) and to its associates/joint ventures/other related entities amounting toRs. 1,405.4 million (March 31, 2010: Rs. 1,346.2 million). The material transactions for the year ended March 31, 2011 were with ICICI Home Finance Company Limited amounting to f 408.3 million (March 31, 2010: Rs. 608.2 million), ICICI Merchant Services Private Limited amounting toRs.664.4million (March 31,2010:Rs. 169.6 million), l-Process Services (India) Private Limited amounting to Rs. 392.9 million (March 31, 2010: Rs. 686.1 million), Financial Inclusion Network & Operations Limited amounting to Rs. 340.3 million (March 31, 2010: Rs. 20.4 million), ICICI Securities Limited amounting to Rs. 207.3 million (March 31, 2010: Rs. 60.0 million) and with Loyalty Solutions & Research Limited amounting to Nil (March 31, 2010: Rs. 407.0 million).

Income on custodial services

During the year ended March 31, 2011, the Bank recovered custodial charges from its subsidiaries amounting to Rs. 1.6 million (March 31,2010: Rs. 1.6 million) and from its associates/joint ventures/other related entities amounting to Rs. 2.6 million (March 31, 2010:
Interest expenses

During the year ended March 31, 2011, the Bank paid interest to its subsidiaries amounting to Rs. 560.7 million (March 31, 2010: Rs. 902.2 million), to its associates/joint ventures/other related entities amounting to Rs. 79.7 million (March 31, 2010: Rs. 3.3 million), to its key management personnel amounting to Rs. 1.5 million (March 31, 2010: Rs. 2.5 million) and to relatives of key management personnel amounting to Rs. 0.7 million (March 31, 2010: Rs. 1.2 million). The material transactions for the year ended March 31, 2011 were with ICICI Prudential Life Insurance Company Limited amounting to Rs. 272.5 million (March 31, 2010: Rs. 420.4 million), ICICI Securities Limited amounting to Rs. 157.2 million (March 31, 2010: Rs. 159.3 million), ICICI Bank Eurasia Limited Liability Company amounting to Rs. 11.3 million (March 31, 2010: Rs. 146.8 million) and to Mewar Aanchalik Gramin Bank amounting to Rs. 69.7 million.

Interest income

During the year ended March 31, 2011, the Bank received interest from its subsidiaries amounting to Rs. 1,579.1 million (March 31, 2010: Rs. 1,588.0 million), from its associates/joint ventures/other related entities amounting to Rs. 4.8 million (March 31, 2010: Rs. 2.9 million), from its key management personnel amounting to Rs. 0.4 million (March 31, 2010: Rs. 0.5 million) and from relatives of key management personnel amounting to Rs. 0.7 million (March 31, 2010: Rs. 1.0 million). The material transactions for the year ended March 31, 2011 were with ICICI Home Finance Company Limited amounting to Rs. 1,127.7 million (March 31, 2010: Rs. 913.7 million) and with ICICI Bank Eurasia Limited Liability Company amounting to Rs. 166.4 million (March 31, 2010: Rs. 351.0 million).

Other income

The Bank undertakes derivative transactions with its subsidiaries, associates, joint ventures and other related entities. The Bank manages its foreign exchange and interest rate risks arising from these transactions by covering them in the market. During the year ended March 31, 2011, the net loss of the Bank on forex and derivative transactions entered into with subsidiaries was Rs. 121.9 million (March 31, 2010: loss of Rs. 17,346.2 million) and the net gain/loss was Nil (March 31, 2010: loss of Rs. 220.9 million) with its associates/joint ventures/other related entities. The material transactions for the year ended March 31, 2011 were loss of Rs. 13.9 million (March 31, 2010: loss of Rs. 17,913.1 million) with ICICI Bank Canada, loss of Rs. 167.5 million (March 31, 2010: gain of Rs. 495.2 million) with ICICI Bank UK PLC, loss of Rs. 64.1 million (March 31, 2010: gain of Rs. 215.8 million) with ICICI Home Finance Company Limited, gain of Rs. 371.7 million (March 31, 2010: loss of Rs. 50.7 million) with ICICI Securities Primary Dealership Limited and loss of Rs. 248.1 million (March 31, 2010: loss of Rs. 93.4 million) with ICICI Bank Eurasia Limited Liability Company. While the Bank within its overall position limits covers these transactions in the market, the above amounts represent only the transactions with its subsidiaries, associates, joint ventures and other related entities and not the offsetting/covering transactions.

Dividend income

During the year ended March 31, 2011, the Bank received dividend from its subsidiaries amounting to Rs. 4,113.5 million (March 31, 2010: Rs. 3,692.7 million). The material transactions for the year ended March 31, 2011 were with ICICI Home Finance Company Limited amounting to Rs. 1,499.8 million (March 31, 2010: Rs. 934.0 million), ICICI Securities Limited amounting to Rs. 810.0 million (March 31, 2010: Rs. 920.0 million), ICICI Securities Primary Dealership Limited amounting to Rs. 250.1 million (March 31, 2010: Rs. 422.1 million), ICICI Lombard General Insurance Company Limited amounting to Rs. 416.6 million (March 31, 2010: f 476.1 million), ICICI Venture Funds Management Company Limited amounting to Rs. 450.0 million (March 31,2010:Rs. 260,0 million) and with ICICI Prudential Asset Management Company Limited amounting to Rs. 229.6 million (March 31, 2010: Rs. 409.6 million).

Dividend paid

During the year ended March 31, 2011, the Bank paid dividend to its key management personnel amounting to Rs. 4.2 million (March 31, 2010: Rs. 4.5 million). The dividend paid during the year ended March 31, 2011 to Ms. Chanda Kochhar was Rs. 3.2 million (March 31, 2010: Rs. 3.0 million), to Mr. Sandeep Bakhshi was Rs. 0.04 million (March 31, 2010: Rs. 0.03 million), to Mr. N. S. Kannan was Rs. 1.0 million (March 31, 2010: Rs. 0.9 million), to Mr. K. Ramkumar was Nil (March 31, 2010: Rs. 0.2 million) and to Mr. Sonjoy Chatterjee was Nil (March 31, 2010: Rs. 0.3 million).

Remuneration to whole-time directors

Remuneration paid to the whole-time directors of the Bank during the year ended March 31, 2011 was Rs. 79.6 million (March 31, 2010: Rs. 119.4 million). The remuneration paid for the year ended March 31, 2010 to Mr. K. V. Kamath was

Rs. 4.1 million. The remuneration paid for the year ended March 31, 2011 to Ms. Chanda Kochhar was Rs. 25.2 million (March 31, 2010: Rs. 17.3 million), to Mr. Sandeep Bakhshi was Rs. 7.7 million (March 31, 2010: Rs. 12.6 million), to Mr. N. S. Kannan was Rs. 15.8 million (March 31, 2010: Rs. 10.2 million), to Mr. K. Ramkumar was Rs. 17.6 million [March 31, 2010: Rs. 53.7 million (includes perquisite value of Rs. 40.6 million on employee stock options (ESOPs) exercised)], to Mr. Rajiv Sabharwal was Rs. 9.0 million and to Mr. Sonjoy Chatterjee was Rs. 4.3 million [March 31, 2010: Rs. 19.6 million (includes perquisite value of Rs. 7.9 million on ESOPs exercised)]. The remuneration paid for the year ended March 31, 2010 to Mr. V, Vaidyanathan was Rs. 1.9 million.

Sale of fixed assets

During the year ended March 31, 2011, the Bank sold fixed assets to its subsidiaries amounting to Rs. 0.9 million (March 31, 2010: Rs. 574.2 million) and to its associates/joint ventures/other related entities amounting to Rs. 2.8 million (March 31,2010: Nil). The material transactions for the year ended March 31,2011 were with ICICI Merchant Services Private Limited amounting toRs. 2.8 million (March 31,2010: Nil), ICICI Securities Limited amounting toRs. 0.8 million (March 31,2010: Rs. 2.8 million) and with ICICI Home Finance Company Limited amounting to Nil (March 31, 2010: Rs. 570.0 million).

Purchase of fixed assets

During the year ended March 31, 2011, the Bank purchased fixed assets from its subsidiaries amounting to Rs. 10.9 million (March 31, 2010: Rs. 21.3 million). The material transactions for the year ended March 31, 2011 were with ICICI Home Finance Company Limited amounting to Rs. 9.9 million (March 31, 2010: Nil) and with ICICI Securities Limited amounting to Rs. 0.2 million (March 31, 2010: Rs. 19.2 million).

Sale of gold coins

During the year ended March 31, 2011, the Bank sold gold coins to ICICI Prudential Life Insurance Company Limited amounting to Rs. 0.9 million (March 31, 2010: Rs. 50.7 million).

Donation

During the year ended March 31, 2011, the Bank has given donation to ICICI Foundation for Inclusive Growth amounting to Rs. 61.0 million (March 31, 2010: Rs. 153.0 million).

Purchase of loan

During the year ended March 31, 2011, the Bank has purchased a loan from ICICI Bank UK PLC amounting toRs. 688.7 million (March 31, 2010: Nil).

Transfer of merchant acquiring operations

During the year ended March 31, 2010, the Bank and First Data, a company engaged in electronic commerce and payment services, formed a merchant acquiring alliance and a new entity, 81% owned by First Data, was formed, which has acquired ICICI Banks merchant acquiring operations through transfer of assets, primarily comprising fixed assets and receivables, and assumption of liabilities, for a total consideration of Rs. 3,744.0 million. This transfer of assets and liabilities to the new entity would be considered a slump sale for tax purposes. The Bank realised a profit of Rs. 2,029.0 million from this transaction, which was included in Schedule 14 - "Other income" for the year ended March 31, 2010.

As per the assessment done, there is no likely financial impact of the above letters issued to overseas regulators or of the indemnity agreements at March 31, 2011.

In addition to the above, the Bank has also issued letters of comfort in the nature of letters of awareness on behalf of banking and non-banking subsidiaries in respect of their borrowings made or proposed to be made and for other incidental business purposes. As they are in the nature of factual statements or confirmation of facts, they do not create any financial impact on the Bank.

The letters of comfort that are outstanding at March 31, 2011 pertain to facilities aggregating equivalent to Rs. 40,240.9 million (March 31, 2010: Rs. 76,408.0 million) as availed of by such subsidiaries. The repayments of facilities pertaining to which such letters were issued, aggregate to f 30,022.6 million and letters that were expired during the year ended March 31, 2011 pertained to facilities aggregating to Rs. 8,356.0 million. A letter pertaining to facilities aggregating to Rs. 2,229.8 million was re-issued during the year ended March 31, 2011.

As advised by RBI, the Bank has provided additional capital of Rs. 1,700.5 million (March 31, 2010: Rs. 3,312.4 million) on the letters of comfort that are in the nature of letters of awareness issued on behalf of its subsidiaries for their borrowing programmes.

45. Small and micro enterprises

Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October 2, 2006, certain disclosures are required to be made relating to enterprises covered under the Act. During the year ended March 31, 2011, the amount paid after the due date to vendors registered under the MSMED Act, 2006 was Rs. 17.9 million {March 31, 2010: Rs. 65.2 million). An amount ofRs. 0.7 million (March 31, 2010: Rs. 1.7 million) has been charged to profit & loss account towards accrual of interest on these delayed payments.

46. Penalties/fines imposed by RBI and other banking regulatory bodies

The penalty imposed by RBI and other banking regulatory bodies during the year ended March 31, 2011 was Rs. 510,000 (March 31,2010: Nil).

During the year ended March 31, 2011, RBI vide letter dated June 22, 2010 had issued an order under section 11(3) of FEMA, 1999 directing the Bank to pay a penalty of Rs. 10,000 for violation of FEMA regulations. The Bank has paid the penalty to RBI on July 2, 2010.

During the year ended March 31, 2011, RBI has levied a penalty of Rs. 500,000 on the Bank for having opened an account only on the basis of driving licence as an identity proof while relying on the introduction from existing customer as an address proof. The Bank has paid the penalty of Rs. 500,000 on August 5, 2010.

In April, 2011, RBI has imposed a penalty of Rs. 1.5 million on the Bank towards non-compliance of certain instructions issued by RBI in respect of derivative business.

48. Comparative figures

Figures of the previous year have been re-grouped to conform to the current year presentation.



 
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