icici bank 1
DESCRIPTION
Presentation on ICICI BankTRANSCRIPT
1
"
2“Hum Hai Na”
BY - Aditya Vajpayee
PRESENTATION
3“Hum Hai Na”
HISTORY & BACKGROUND 5 YEAR PERFORMANCE AWARDS & RECOGNITION INITIATIVES MISSION, VISION & VALUES FUTURE PLANNING & CHALLENGES MARKETING STRATEGYCONCLUSION
AGENDA
KEY PERSONS
CHAIRMAN-
K.V. KAMATH
M.D. & CEO-
CHANDA KOCHHAR
“Hum Hai Na” 4
HISTORY
Founded in 1955.
Incorporated at the initiative of World Bank, GOI & Representatives of Industry. Objective was to provide financial assistance to Business projects.
Earlier known as “Industrial Credit & Investment Corporation of India”.
“Hum Hai Na”5
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OVERVIEWOffers a wide range of products & financial services.
ICICI BANK- Second largest bank.
ICICI PRUDENTIAL- Largest private sector insurance company.
ICICI LOBARD- Largest private sector general insurance company.
ICICI SECURITIES- Largest equity house in the country.
ICICI PRU AMC- Third largest mutual fund.
ICICI VENTURE- One of the largest private equity firms.
“Hum Hai Na”
India’s second largest bank.
Biggest private sector bank.
Introduced the concept of DSA & DST.
Focus on retail banking as a driver for growth.
Introduced the concept of branding in Indian
HQ BANDRA KURLA COMPLEX, MUMBAI
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Banking Industry.
8
2006 2007 2008 2009 20100
50000
100000
150000
200000
250000
300000
350000
R & SNet AssetsLoan Funds
“Hum Hai Na”
LAST 5 YEAR PERFORMANCE
Rs. crore
9“Hum Hai Na”
LAST 5 YEAR PERFORMANCE
2006 2007 2008 2009 20100
5000
10000
15000
20000
25000
30000
35000
40000
45000
IncomeExpensesProfit
Rs. crore
“Hum Hai Na”10
LoansFixed & other assetsInvestments
Share holder fundsDepositsBorrowings
ICICI HOME FINANCE
Total assets/liabilities: Rs. 128.15bn• Net Profit of Rs. 1.61bn in FY2010 as compared to Rs.1.43bn in FY2009• Capital Adequacy Ratio of 15.3% on March31, 2010• Net NPA ratio: 1.29%
10% 3%
87%
62% 10% 28%
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OverseasRuralDomesticSMERetail
25%
10%
Vehicle
Secured
Personal
Credit card
Home
27%
2%
6% 5%
Composition of Loan book, As on March, 2010
18%4%
43%
60%
Total loan book: Rs.1812bn Total retail loan book: Rs. 790bn
Vehicle loan contains auto loan 10%, commercial business 6% & two wheeler 1%.Retail business group includes builder loan & dealer funding of Rs. 40.26bn.
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Federally insured mortgageIndia liinked investmentsCash & liquid securi-tiesOther assets & investmentsAssets backed se-curitiesLoans to customers
58%
10% 3% 21%
6% 2%
ICICI Bank CANADA assets profile
Total Assets: CAD 5.7bn
“Hum Hai Na”13
loans & advancescash & liquid securi-tiesother assets & invassets backed secindia linked invbond/notes of fin. Inst.
19% 52% 5% 2% 5%
17%
ICICI Bank UK assets profile
Total assets: USD 7.4bn
“Hum Hai Na”14
Retail loansOther assets & investments 6%Loans to corporatesCorporate BondsCash & liquid securi-ties
16% 40% 6%
4% 34%
ICICI Bank EURASIA assets profile
Total liabilities: USD 406mn
15“Hum Hai Na”
AWARDS
It is the only Indian bank to be ranked as the 45th most valuable global brand
ICICI bank won the Asian Banker award for best banking security system
ICICI PRU life ranked as the most trusted pvt. Insurance brand in the brand equity
ICICI LOMBARD was awarded “Most Preferred General Insurance Brand” at CNBC consumer award 2010
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INITIATIVES
ICICI foundation for inclusive growth
ICICI group’s financial inclusive initiatives
Disha counseling Technology finance group
Read to lead campaign
Go Green. Each one for a better earth
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VISION
To be the leading provider of financial services in India & a global player.
MISSION
“Perfection in Power”
We will leverage our people, technology, speed & financial capital to:
1. Be the banker of first choice for our customers by delivering high quality, world class products & services.
2. Expand the frontiers of our business globally.3. Maintain high standards of governance & ethics.4. Create value for our stake holders.
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FUTURE PLANNING & CHALLENGES
To revive growth after the sub-prime crisis
To increase its presence across India through mergers.
To restore customer’s faith
To maintain its brand & position of its subsidiaries
To capitalize on its strength i.e. maintain its place globally
To reduce the operating expenses, NPL &NPA.
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ICICI LIFE
FY2011: NON BANKING SUBSIDIARY
ICICI LOMBARD
ICICI AMC
ICICI SECURITIES
Maintained position as the largest private sector life insurer with continued focus on profitability
Focus on maintaining leadership, while improving underwriting profitability
Maintain market position among top three mutual fund
Capitalize on retail broking platform & market opportunities to increase revenues & profitability
“Hum Hai Na”
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Growth then & now
OPERATING ENVIRONMENT
•High volatility•Economic slowdown•Weak Business sentiment
•Revival in growth
• Strong growth momentum• Policy tightening
•Countered by monetary & fiscal measures
•Abundant liquidity, low yield & price competition
• Credit demand expected to increase in retail & infrastructure sectors
FY2009 FY2010 FY2011
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STRATEGY
FY2010 FY2011
• Position the balance sheet for growth
• Resume balance sheet growth
• 4Cs: CASA, Credit quality, cost & capital
• While continuing focus on 4 Cs, leverage economic recovery, expanded branch network & rebalanced funding mix to grow the balance sheet
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Other Subsidiaries
Profit after Tax FY2009 FY2010
ICICI Securities ltd 0.04 1.23
ICICI Venture 1.48 .51
ICICI Prudential Asset Mgt Company
.01 1.28
ICICI General .24 1.48
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Continued market leadership in private sector
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CAPITAL ADEQUACY RATIO
“Hum Hai Na”
TIER-1 14%
TIER-2 5.4%
TOTAL (CAR) IS 19.4% = Rs.571.2bn
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MARCH 09 MARCH 10
ICICI PRU 34 35
ICICI HOME FIN 11.12 11.12
ICICI LOMBARD
10.96 10.96
ICICI BANK EURASIA
3.00 3.00
ICICI BANK CANADA
33.50 33.50
ICICI BANK UK 23.25 23.25
ICICI SEC .87 .87
ICICI SEC LTD 1.58 1.58
ICICI VENTURE .05 .05
OTHERS .14 .14
TOTAL 120.97 122
EQUITY INVESTMENTS IN SUBSIDIARIES
Rs. In bn
26
COMPOSITION OF BORROWING
“Hum Hai Na”
Domestic March 2009 March 2010
Capital instruments 241 318
Other borrowings 138 14
Overseas March 2009 March 2010
Capital instruments 17.16 15.20
Other borrowings 534 461
Rs. In bn
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BRANCH AS PRIMARY CHANNEL
FY2011: Reorganizing for customer centrity
FROM “PRODUCT FOCUS” TO
“CONSUMER FOCUS”
• Retail business reorganized around geographies & customer segments• Enhanced decision making ability at branches• Sales & service orientation
• Segment-specific strategies & value proposition encompassing both asset & liability relationship
2006 2007 2008 2009 2010
Branches 614 755 1262 1419 2029
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FY-06 FY-07 FY-08 FY-09 FY-100
0.5
1
1.5
2
2.5
3
Cos
t/A
vera
ge a
sset
s
Rs.bn FY-06 FY-07 FY-08 FY-09 FY-10
Operating& DMA*expenses
45.25 65.02 79.72 68.85 57.18
*DMA- Direct Marketing Agency
• 16.1% YOY reduction in operating expenses in FY2010
Stringent cost reduction
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0
100
200
300
400
500
600
Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar-03 04 05 06 07 08 09 10
CAGR- 46%
Sav
ing
dep
osit
s(R
s.b
n)
Mar-03
Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
CASAratio
15.5% 23% 24.3% 22.7% 21.8% 26.1% 28% 48%
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Whole sale Banking
Infrastructure & other project finance Commercial Banking Mid-Corporate & SME segments.
Retail Banking
Leverage expanded branch infrastructureSecured Retail loans(mortgage & vehicle
loans) Selective growth in personal loans and
credit cards
FY- 2011 GROWTH STRATEGY
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TARGETS ON 4C ACHIEVED
PROGRESS IN EXECUTION OF STRATEGY
• Robust growth in CASA deposit
• Reduction in operating expenses
•Sharp reduction in retail NPL formation
• Well capitalized for sustained growth
Well positioned to participate in emerging opportunities
“Hum Hai Na”
"HUM HAI NA" 32
MARKETING STRATEGY
To make its presence more prominent
Focus on credit quality
To create awareness about products through advertisement
To maintain its brand of a global bank
"HUM HAI NA"
BASIS FOR SEGMENTATION OCCUPATION Different products for different occupation identifiedINCOME Minimum balance serves as income barrierGEOGRAPHICAL Concentrated on tier-1 & tier-2 cities, extending its reach
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"HUM HAI NA"34
A man strolls down a beach, "Zindagi naam hai,mushkil ko aasaan banaane ka. Z A man strolls down a beach, "Zindagi naam hai,mushkil ko aasaan banaane ka
Cut to a house, a man addresses the members,”I am Ajay Sharma from ICICI. Ma'am your home has been sanctioned.”
Amitabh Bacchan turns to face the camera, "Bas. Ek bharosemand saathi hona chahiye."
MVO: "Saathi jo zindagi ko aasan banaaye." Super: 'ICICI Group. Saral. Surakshit. Samajhdar
ADVERTISING
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ADVERTISING
A couple enter ICICI Bank and areserved coffee as they wait toopen an account
Super: How long does it take to open an account with ICICI Bank?
The man takes a swig from his cup... Super: Before your coffee goes cold. The executive smiles at their
... disbelief and hands over the documents.VO: Have you opened an ICICI Bankaccount as yet?
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ADVERTISING
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NUMBER 1 BANKING BRAND IN INDIA
“Hum Hai Na”
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NUMBER 1 BANKING BRAND IN INDIA
“Hum Hai Na”
39“Hum Hai Na”
CONCLUSION
To be more costumer oriented
Keep innovating with its products
To play a prominent role in the development of India
