ICICI Bank sees 18% credit growth in 2010-11

The lender attributes positive growth to its healthy current accounts and savings accounts deposits
level.

Country's largest private lender ICICI Bank has said that its credit will grow at a hefty 18 per cent this
fiscal, contrary to a meagre 1.8 per cent expansion in the first half, largely on account of buoyant
corporate and retail businesses.

"Last quarter (July-September) was the first quarter after nine quarters that the decline in retail
business was arrested...our domestic corporate sector business has grown at an annualised rate of
30 per cent in the last quarter. So that growth would sustain," ICICI Bank CEO Chanda Kochhar said.

It may be recalled that ICICI Bank had posted a 19 per cent growth in net profit to Rs 1,236.27 crore
($271.3 million) during the second quarter. In the same period a year ago, it had witnessed a flat
growth at Rs 1,040.13 crore ($228.31 million).

"From here, what will happen is that our retail business will start growing...international growing at
single digit and corporate sector growing at much healthier rate. I still expect that for the year as a
whole we should end with 18 per cent growth rate," Kochhar said.

-- 30.5% year-on-year increase in profit after tax to Rs. 1,437 crore (US$

321 million) for the quarter ended December 31, 2010 (Q3-2011) from Rs. 1

101 crore (US$ 246 million) for the quarter ended December 31, 2009

(Q3-2010)

-- 77.5% year-on-year increase in consolidated profit after tax to Rs. 2,039

crore (US$ 456 million) for Q3-2011 from Rs. 1,149 crore (US$ 257

million) for Q3-2010

-- 36.0% year-on-year increase in consolidated profit after tax to Rs. 4,525

crore (US$ 1.0 billion) for the nine months ended December 31, 2010

(9M-2011) from Rs. 3,328 crore (US$ 744 million) for the nine months

ended December 31, 2009 (9M-2010)

31, 2010 from 39.6% at December 31, 2009

-- Net non-performing asset ratio declined to 1.16% at December 31, 2010

from 2.19% at December 31, 2009

-- Provision coverage ratio increased to 71.8% at December 31, 2010 from

69.0% at September 30, 2010 (51.2% at December 31, 2009)

-- Strong capital adequacy ratio of 19.98% and Tier-1 capital adequacy of

13.72%

MUMBAI, India--(BUSINESS WIRE)--January 24, 2011--

The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Mumbai today,
approved the audited accounts of the Bank for the quarter ended December 31, 2010.

Profit & loss account

-- Profit after tax increased 30.5% to Rs. 1,437 crore (US$ 321 million)

for Q3-2011 from Rs. 1,101 crore (US$ 246 million) for Q3-2010.

-- Net interest income increased 12.3% to Rs. 2,312 crore (US$ 517 million)

in Q3-2011 from Rs. 2,058 crore (US$ 460 million) in Q3-2010.

-- Fee income increased 14.3% to Rs. 1,625 crore (US$ 363 million) in

Q3-2011 from Rs. 1,422 crore (US$ 318 million) in Q3-2010.

-- Operating expenses (including direct marketing agency expenses)

increased 27.2% to Rs. 1,707 crore (US$ 382 million) in Q3-2011 from Rs.

1,342 crore (US$ 300 million) in Q3-2010, primarily due to costs

relating to new branches added over the last year and full impact of

cost of erstwhile Bank of Rajasthan (e-BOR) during the quarter.

-- Provisions decreased 53.6% to Rs. 465 crore (US$ 104 million) in Q3-2011

from Rs. 1,002 crore (US$ 224 million) in Q3-2010.

-- Profit after tax for 9M-2011 was Rs. 3,699 crore (US$ 827 million)

compared to Rs. 3,019 crore (US$ 675 million) for 9M-2010.

Operating review
The Bank has continued with its strategy of pursuing profitable credit growth by leveraging on its
improved fund mix, lower credit costs and efficiency improvement and cost rationalisation. In this
direction, the Bank continues to leverage its expanded branch network to enhance its deposit
franchise and create an integrated distribution network for both asset and liability products. At
December 31, 2010, the Bank had 2,512 branches, the largest branch network among private sector
banks in the country.

Credit growth

Advances increased by 15.3% year-on-year to Rs. 206,692 crore (US$ 46.2 billion) at December 31,
2010 from Rs. 179,269 crore (US$ 40.1 billion) at December 31, 2009.

Deposit growth

Savings deposits increased by 26.5% year-on-year to Rs. 64,577 crore (US$ 14.4 billion) at December
31, 2010 from Rs. 51,054 crore (US$ 11.4 billion) at December 31, 2009 and the CASA ratio increased
to 44.2% at December 31, 2010 from 39.6% at December 31, 2009.

Capital adequacy

The Bank's capital adequacy at December 31, 2010 as per Reserve Bank of India's guidelines on Basel
II norms was 19.98% and Tier-1 capital adequacy was 13.72%, well above RBI's requirement of total
capital adequacy of 9.0% and Tier-1 capital adequacy of 6.0%.

Asset quality

Net non-performing assets decreased by 34.9% to Rs. 2,873 crore (US$ 643 million) at December 31,
2010 from Rs. 4,416 crore (US$ 988 million) at December 31, 2009. The Bank's net non-performing
asset ratio decreased to 1.16% at December 31, 2010 from 2.19% at December 31, 2009. The Bank's
provisioning coverage ratio computed in accordance with the RBI guidelines at December 31, 2010
was 71.8% compared to 51.2% at December 31, 2009.

Consolidated profits

Consolidated profit after tax of the Bank increased by 36.0% to Rs. 4,525 crore (US$ 1.0 billion) for
9M-2011 compared to Rs. 3,328 crore (US$ 744 million) for 9M-2010. Consolidated profit after tax
for Q3-2011 increased by 77.5% to Rs. 2,039 crore (US$ 456 million) compared to Rs. 1,149 crore
(US$ 257 million) for Q3-2010. This includes transfer of surplus in the non-participating
policyholders' funds of ICICI Prudential Life Insurance Company (ICICI Life) on a quarterly basis, as
compared to an annual basis as permitted earlier, as per Insurance Regulatory and Development
Authority (IRDA) circular dated December 27, 2010. The Bank's consolidated profit after tax for 9M-
2011 and Q3-2011 include Rs. 384 crore (US$ 86 million) on account of this transfer.

Insurance subsidiaries

ICICI Life maintained its position as the largest private sector life insurer based on new business
retail weighted received premium during April-November 2010. ICICI Life's new business premium
increased by 21.3% to Rs. 4,650 crore (US$ 1,040 million) in 9M-2011 from Rs. 3,833 crore (US$ 857
million) in 9M-2010. ICICI Life's unaudited new business profit (NBP) in 9M-2011 was Rs. 579 crore
(US$ 130 million). Assets held increased by 23.7% to Rs. 66,334 crore (US$ 14.8 billion) at December
31, 2010 from Rs. 53,619 crore (US$ 12.0 billion) at December 31, 2009. ICICI Life's profit after tax for
9M-2011 was Rs. 513 crore (US$ 115 million). ICICI Life's NBP and profit after tax for Q3-2011 were
Rs. 100 crore (US$ 22 million) and Rs. 614 crore (US$ 137 million) respectively. ICICI Life's profit after
tax for 9M-2011 and Q3-2011 include Rs. 520 crore (US$ 116 million) on account of transfer of
surplus in the non-participating policyholders' funds on a quarterly basis, as compared to an annual
basis as permitted earlier, as per Insurance Regulatory and Development Authority (IRDA) circular
dated December 27, 2010.

ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the private
sector during 9M-2011 with a market share of 9.8%. ICICI General's premium income in 9M-2011
increased by 29.4% to Rs. 3,250 crore (US$ 727 million) from Rs. 2,512 crore (US$ 562 million) in 9M-
2010. ICICI General's profit after tax was Rs. 210 crore (US$ 47 million) in 9M-2011 compared to Rs.
132 crore (US$ 30 million) in 9M-2010. ICICI General's profit after tax for Q3-2011 was Rs. 74 crore
(US$ 17 million).

1. Includes profit of Rs. 203 crore related to transfer of merchant

acquiring operations to new entity 81% owned by First Data.

2. Represents commissions paid to direct marketing agents (DMAs) for

origination of retail loans. These commissions are expensed upfront.

3. Results for Q2-2011, Q3-2011 and 9M-2011 take into account the

impact of amalgamation of erstwhile Bank of Rajasthan from close of

business on August 12, 2010.

4. Prior period figures have been regrouped/re-arranged where

necessary.

1. Borrowings include preference shares amounting to Rs. 350 crore.

2. Figures for December 31, 2010 take into account the impact of

amalgamation of erstwhile Bank of Rajasthan from close of business on

August 12, 2010.

All financial and other information in this press release, other than financial and other information
for specific subsidiaries where specifically mentioned, is on an unconsolidated basis for ICICI Bank
Limited only unless specifically stated to be on a consolidated basis for ICICI Bank Limited and its
subsidiaries. Please also refer to the statement of audited unconsolidated, consolidated and
segmental results required by Indian regulations that has, along with this release, been filed with the
stock exchanges in India where ICICI Bank's equity shares are listed and with the New York Stock
Exchange and the US Securities Exchange Commission, and is available on our website
www.icicibank.com.
Except for the historical information contained herein, statements in this release which contain
words or phrases such as 'will', 'expected to', etc., and similar expressions or variations of such
expressions may constitute 'forward-looking statements'. These forward-looking statements involve
a number of risks, uncertainties and other factors that could cause actual results, opportunities and
growth potential to differ materially from those suggested by the forward-looking statements. These
risks and uncertainties include, but are not limited to, the actual growth in demand for banking and
other financial products and services in the countries that we operate or where a material number
of our customers reside, our ability to successfully implement our strategy, including our use of the
Internet and other technology, our rural expansion, our exploration of merger and acquisition
opportunities, our ability to integrate recent or future mergers or acquisitions into our operations
and manage the risks associated with such acquisitions to achieve our strategic and financial
objectives, our ability to manage the increased complexity of the risks we face following our rapid
international growth, future levels of impaired loans, our growth and expansion in domestic and
overseas markets, the adequacy of our allowance for credit and investment losses, technological
changes, investment income, our ability to market new products, cash flow projections, the outcome
of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a
party to, the future impact of new accounting standards, our ability to implement our dividend
policy, the impact of changes in banking regulations and other regulatory changes in India and other
jurisdictions on us, the bond and loan market conditions and availability of liquidity amongst the
investor community in these markets, the nature or level of credit spreads, interest spreads from
time to time, including the possibility of increasing credit spreads or interest rates, our ability to roll
over our short-term funding sources and our exposure to credit, market and liquidity risks as well as
other risks that are detailed in the reports filed by us with the United States Securities and Exchange
Commission. ICICI Bank undertakes no obligation to update forward-looking statements to reflect
events or circumstances after the date thereof.

This release does not constitute an offer of securities.

1 crore = 10.0 million US$ amounts represent convenience translations at US$1 = Rs. 44.71

1. At September 30, 2010, the gross non-performing advances (net of write-off) were Rs. 10,141.16
crore (June 30,

2010: Rs. 9,829.03 crore) and the net non-performing advances were Rs. 3,145.23 crore (June 30,
2010: Rs. 3,456.18

crore). At September 30, 2010, the percentage of gross non-performing advances (net of write-off)
to gross

advances (net of write-off) was 5.03% (June 30, 2010: 5.14%) and percentage of net non-performing
advances to net

advances was 1.62% (June 30, 2010: 1.87%).

2. At December 31, 2010, the percentage of gross non-performing customer assets to gross
customer assets was 3.99%