ICICI bank is the second largest lender in India, the largest being SBI. It provides an array of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.
The bank has its presence in the United Kingdom, Russia and Canada; branches in United States, Singapore, Bahrain, HongKong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Thailand, Malaysia and Indonesia. The bank' s UK subsidiary has set up branches in Germany and Belgium.
In the year 2009, the bank had total assets amounting to Rs 366,374 crore (Rs 3,663.74 billion) at end September 2009. The bank posted a profit after tax (PAT) of Rs 1,040 crore (Rs 10.40 billion) for the quarter ended September 30,2009, an increase of 18 percent from Rs. 878 crore in the quarter ended June 30, 2009.
As on October 26, 2009, the bank had 1,520 branches and number of ATM's in India stood at around 4,816. Currently, it is present in 18 countries.
The bank is in the process of implementing the 580 branch licenses received from the regulator, RBI which would increase the number of branches to 2,100 giving the bank a wide presence in the country.
The bank's profit before tax for FY2009 stood Rs 5,117 crore (Rs 51.17 billion) compared with Rs 5,056 crore (Rs 50.56 billion) in FY2008.
Profit after tax for FY2009 was Rs 3,758 crore (Rs 37.58 billion) compared to Rs 4,158 crore (Rs 41.58 billion) for FY2008 due to the higher effective tax rate on account of lower proportion of income taxable as dividends and capital gains. The bank reported an increase in treasury gains, though the core banking income was slightly below expectations.
Operating expense is the day to day cost of a company. The objective of any organisation is to minimise its operating cost and simultaneously gain market share. ICICI Bank has managed to keep its operating expenses low. The operating expenses decreased 14 per cent to Rs 6,835 crore (Rs 68.35 billion) in FY2009 from Rs 7,972 crore (Rs 79.72 billion) in FY2008.
The bank has also been able to maintain low NPA levels. The bank restricted aggressive selling of home loans, automobile loans (both 2 wheelers and 4 wheelers). Going slow on loans as helped the bank to have a better portfolio of assets.
ICICI has seen an increase in deposit base by Rs 9,283 crore (Rs 92.83 billion) in fourth quarter of 2009, of which Rs 5,286 crore (Rs 52.86 billion) was CASA (current account and savings account). CASA ratio is the ratio of the deposits in the form of current account & savings account to the total deposits. There was a considerable increase in CASA ratio of the bank to 28.7 per cent at end-March, 2009 compared to 27.4 per cent at end-December, 2008 and 26.1 per cent at end-March, 2008.
The net interest income of the bank increased 15 percent in the financial year 2009. The NII is the difference between revenues on assets and cost of servicing the liabilities.
ICICI Bank has a good portfolio of subsidiaries. Some of them have good revenue streams; others have a good market value which could be tapped strategically to make capital gains.