Final Icici Ppt

8/4/2019 Final Icici Ppt

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Agenda

ICICI Bank today

Retail banking

Corporate banking & structured finance

Merger process

Financial performance


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Indias largest

private sector bank

and one stop

financial solutionsprovider with a

diversified and de-

risked business

model

ICICI Bank today Large capital base

Vast talent pool

Low operating costs

Technology focus

Strong corporaterelationships


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ICICI Bank today (contd.) Diversified portfolio

Rs. 931.50 billion Rs. 1,041.10 billion

March 2001- Proforma merged March 2002- Merged

3%12%

4%

12%

36%

33% Project finance

Corporate finance

Retail finance

Reserves & cash

Investments

Other assets

23%

23%

8%

7%5%

34%

the asset composition change on account of statutory

requirements and increase in retail assets is contributing to de-

risking the portfolio


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Online Products

e-banking in ICICI

ICICI Markets

online FX, Debt, SME

Portal

Corporate Infinityonline transfer/

settlement system

Bill JunctionUtility bill payments

Business Multiplier

web interfaceICICI Direct and ICICI

Select

Pay Sealelectronic payment

system


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ICICI Bank today (contd.)

ICICI Bank is wellpositioned to redefine

the banking model by

focussing on the

untapped potential in

the profitable retail

business segments and

leveraging its superior

delivery capabilities and

lower operating costs in

the under-served

corporate banking

business

Retail banking

Corporate banking

Structured finance


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ContentsICICI Bank today

Retail banking


Merger process



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130.00

180.00

230.00170.00

130.00

220.00

0

100

200

300

400

500

2000 2001 2002

Mortgages Other retail loans

Size

CAGR 32%

Retail loan disbursements

ICICI estimates

Despite the fast growth, the Indian retail market continues to be

under-penetrated in comparison to its peers

260.00

(Rs

.inbillion)

350.00

450.00


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Household segment migration

1996 1999 2002

Rich (> Rs. 0.5 m n p.a.) M ass affluent (Rs. 0.3-0.5 m n p.a.)

Mass (Rs. 0.1-0.3 mn p.a.)

2.1

6.8

Source: 1996, 1999 data is from NCAER study for top 24 cities,

2002 data is estimated by ICICI Bank

~CAGR 48%

22.9No. of households

(million)


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ICICI Banks strategy to capture retail

potentialStrong corporaterelationships

Brand

Technology

Operational excellence

Achieving leadership inretail financial services

the core of this strategy is

our relentless focus on the

customer and cross-selling of

products


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Catalyzing cross-sell

Internet Banking Call Centers 500 Outlets 1005 ATMs

Bonds Life insurance Health insuranceFixed deposits

Consumer loans Auto & home loans Credit & debit cardsPower Pay

Customized cross-sellingby leveraging relationships, brand and

technology


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Operational excellence

These measures have ensured that we have followed a cautious

approach while maintaining high growth rates and profitability in

all segments

Prudent credit policies

Adequate fraud control Rigorous collection mechanism

Bolstered by acompany wide 6

sigma initiative


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2 8 . 5 28 . 6 1

5 1 . 3 4

2 2 . 1 2

-

1020

30

40

50

60

7080

2000 2001 2002

Hom e loans Other retai l loans

Our growth in retail (contd.)

Home & others

(

Rs.

inbillion)

Home loans grew at

230% in FY 2002

Amongst the leading

providers of home loans

in India

Other retail loans grewat 130% in FY 20025.15

30.73

79.86Outstanding loans

Bank accounts Credit cards

Growth rate

167%


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0 .1

1 .2

0 .60 .3

0 .6

3 .2

5 .0

-

1

2

3

4

5

1999 2000 2001 2002

Inte rnet banking custo mers

B ank custo mer acco unts

(million)

Bank accounts grew at

53% in FY 2002

Internet customer

accounts grew at 100%

in FY 2002 Comprised 25% of bank

accounts

Among top twelve

internet banks in the

world

Home & others Bank accounts Credit cards

5.0


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Number of credit cards

0.3

0.6

-

0.3

0.5

0.8

2000 2001 2002

(million)

Home & others Bank accounts Credit cards

Growth rate

100%


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In summary

Mortgages

Other retail loans

Credit cards

Nascent Developing Matured Commoditized

We entered the retail market at the beginning of the growth

stage and are now harnessing the untapped potential in all the

profitable business segments

ICICI Bank analysis - For mortgages & other retail loans: Nascent 30%of GDP. For credit cards: Nascent 50% penetration


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Retail banking


Merger process


C b ki d d


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Strategy

Maximize value of client relationships

Leverage technology to enhance delivery capabilities

Proactive portfolio management

For efficient capital utilisation and lower balance sheet

exposure

Corporate banking and structured

finance

Corporate Banking Structured Finance

The aim is to provide state-of-the-art, low cost and efficient

banking services, with a focus on increasing fee-basedincome

C b ki d d


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Feemarketsize

Grow market share in fee-based products and services


finance

51%

14%

13%

4%

18%

Corporate

Retail

Government

Forex

Overseas

Marketsize: Rs. 111.10 billion


C t b ki d t t d


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Corporate Solutions Group

Reach the entire universe of current and potential clients(over 1300) and offer tailor-made solutions

Government Solutions Group

Develop comprehensive banking relationships with all

central, state and local governmental entities

Small & Medium Enterprises Group

Develop comprehensive banking relationships with small &

medium sized enterprises leveraging corporate linkages

Focus on agri-lending to help in compliance with priority

sector norms

Strategy


finance


C t b ki d t t d


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Leverage expertise to facilitate loan origination and ensuresell down leading to

Reduced concentration of risk

Optimal risk-return trade-off

Aggressively pursue cross-sell opportunities for all ICICI

group products


finance


Significant opportunities for funding well-structured projects

with in-built risk mitigation

Strategy

C t b ki d t t d


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Infrastructure Projects Group

Create a balanced portfolio across sub-sectors

Telecom, Power, Transportation, Urban Infrastructure

Focus on non-fund based activities

Manufacturing Projects Group Consolidation and modernization in core sectors

Cement, Steel, Textiles, Chemicals

Structured opportunities in certain emerging sectors

Oil & gas, Mining, Retail, Agri infrastructure


finance

Strategy


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Retail banking


Merger process



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Having complied with all regulatory requirements, the merged entity, with an

established brand and strong technology focus, is now well placed to harness the

vast retail potential and consolidate its position in corporate banking to emerge

as the leading financial solutions provider in India

In conclusion


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Present Scenario

Indian retail banking has been showing

phenomenal growthIn 2004-05, 42% of credit growth came from retail

Over the last 5 years CAGR has been over 35%

Retail credit levelcrossed Rs.189K Crore in 2004-05Market has transformed into a buyers market

from a sellersmarket

Comprises of multiple products, channels of

distribution and multiple customer groups


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Industrys response to the change

Anywhere,Anytime Banking

Improved processes/Bundled product offerings

Faster service/Reduced TATs

Customer specific products/offerings on a regularbasis

Bank customer has replaced Branch customer

Focus on understanding customer needs/

preferencesSegmentation/Differentiation of customers

Customer driven strategies

Building relationships


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The accelerated retail growth has been on a historicallylow base

Penetration continues to be significantly low compared to

global bench marks

Share of retail credit expected to grow from 22% to 36%

Retail credit expected to grow to Rs.575,000 crs by 2010at an annual growth rate of 25%

Source: Cygnus industry insight

Future Of Retail Banking


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Strategies for Future

Reaching to masses : Need to customize

Customer segmentation/differentiation

Data mining/CRM based campaigns

Products per customer/loyalty

Promoting low risk retail lending products

Offer an array of products and financial advisory.

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