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ICICI Bank Ltd (INDUSTRY : Banks)

  • BSE Code: 532174
  • ISIN Demat: INE090A01021
  • Book Value ( ₹ ) 250.61
  • Face Value ( ₹ ) 2
  • Market Cap ( ₹ Cr. ) 583,433.55
  • P/E (TTM): 22.76
  • EPS (TTM): 36.83
  • Div Yield (%): 0.60

Your Directors have pleasure in presenting the Twenty-Seventh Annual Report of ICICI Bank Limited (ICICI Bank/the Bank) along with the audited financial statements for the year ended March 31,2021.


The financial performance for fiscal 2021 is summarised in the following table:

Rs. in billion, except percentages Fiscal 2020 Fiscal 2021 % change
Net interest income and non-interest income 484.23 529.12 9.3%
Operating expenses 216.15 215.61 (0.2%)
Core operating profit 268.08 313.51 16.9%
Treasury income 12.93 50.46 290.3%
Operating profit 281.01 363.97 29.5%
Provisions & contingencies (excluding tax) 140.53 162.14 15.4%
Profit before tax 140.48 201.83 43.7%
Profit after tax 79.31 161.93 104.2%
Rs. in billion, except percentages Fiscal 2020 Fiscal 2021 % change
Consolidated profit before tax and minority interest 185.89 260.28 40.0%
Consolidated profit after tax and minority interest 95.66 183.84 92.2%


The profit after tax of the Bank for fiscal 2021 is Rs. 161.93 billion after provisions and contingencies of Rs. 202.04 billion (including provision for taxes of Rs. 39.90 billion). The accumulated profit is Rs. 375.20 billion, taking into account the balance of Rs. 213.27 billion brought forward from the previous year. Your Bank has a consistent dividend payment history. Your Banks dividend policy is based on the profitability and key financial metrics, capital position and requirements and the regulations pertaining to the payment of dividend. The Reserve Bank of India (RBI) through its circular on Declaration of dividends by banks (Revised) had directed that banks shall not make any dividend payouts on equity shares from the profits pertaining to fiscal 2020. Accordingly, the Board of Directors did not recommend any dividend for fiscal 2020. The Board of Directors has recommended a dividend of Rs. 2.00 per equity share for the year ended March 31, 2021 and has appropriated the disposable profit as follows:

Rs. in billion Fiscal 2020 Fiscal 2021
To Statutory Reserve, making in all Rs. 297.69 billion 19.83 40.48
To Special Reserve created and maintained in terms of Section 36(1) (viii) of the Income Tax Act, 1961, making in all Rs. 113.84 7.90 10.90
To Capital Reserve, making in all Rs. 133.80 billion 3.96 1.30
To Investment Fluctuation Reserve, making in all Rs. 16.89 billion1 6.69 (2.49)
To Revenue and other reserves, making in all Rs. 56.57 billion - 14.922
Dividend paid on equity shares3 6.45 -
Leaving balance to be carried forward to the next year 213.28 310.09


1 Represents an amount transferred to Investment Fluctuation Reserve (IFR) from disposable profit. As per the RBI guidelines, an amount not less than the lower of net profit on sale of available-for-sale (AFS) and held-to-maturity (HFT) category investments during the year or net profit for the year less mandatory appropriations is required to be transferred to IFR, until the amount of IFR is at least 2% of the HFT and AFS portfolio. The Bank can draw down balance available in IFR in excess of 2% of its AFS and HFT portfolio. Accordingly, during fiscal 2021, the Bank has transferred an amount of Rs. 2.49 billion from IFR to Balance in Profit & Loss Account.

2 Includes transfer of accumulated balance amounting to 0.08 billion maintained in Reserve Fund under Sri Lankan Banking Act No. 30 of 1988 to balance in Profit & Loss account due to closure of the Branch.

3 Represent dividend declared for previous financial year and paid in current financial year. RBI through its circular on Declaration of dividends by banks (Revised) had directed that banks shall not make any dividend payment on equity shares from the profits pertaining to the financial year ended March 31, 2020. Accordingly, the Bank did not declare any dividend for fiscal 2020.

The Bank prepares its financial statements in accordance with the applicable accounting standards, RBI guidelines and other applicable laws/regulations. RBI, under its risk- based supervision exercise, carries out the risk assessment of the Bank on an annual basis. This assessment is initiated subsequent to the finalisation, completion of audit and publication of audited financial statements for a financial year and typically occurs a few months after the financial year-end. As a part of this assessment, RBI separately reviews asset classification and provisioning of credit facilities given by the Bank to its borrowers. The divergences, if any, in classification or provisioning arising out of the supervisory process are given effect to in the financial statements in subsequent periods after conclusion of the exercise.

In terms of the RBI circular no. DBR.BP!BC.No.32/21.04.018/ 2018-19 dated April 1,2019, banks are required to disclose the divergences in asset classification and provisioning consequent to RBIs annual supervisory process in their notes to accounts to the financial statements, wherever either

(a) the additional provisioning requirements assessed by RBI exceed 10% of the reported net profits before provisions and contingencies or

(b) the additional gross NPAs identified by RBI exceed 15% of the published incremental gross NPAs for the reference period, or both. Based on the condition mentioned in RBI circular, no disclosure on divergence in asset classification and provisioning for NPAs is required with respect to RBIs supervisory process for fiscal 2020.


During the year under review, the Bank allotted 24,232,771 equity shares of Rs. 2.00 each pursuant to exercise of stock options under the Employee Stock Option Scheme.

On August 15, 2020, allotment of 418,994,413 equity shares of face value Rs. 2.00 each was made to eligible qualified institutional buyers at the issue price of Rs. 358.00 per equity share, i.e., at a premium of Rs. 356.00 per equity share.

For details refer to Schedule 1 of the financial statements.


Pursuant to Section 186(11) of the Companies Act, 2013, the provisions of Section 186 of the Companies Act, 2013, except sub-section (1), do not apply to a loan made, guarantee given or security provided by a banking company in the ordinary course of business. The particulars of investments made by the Bank are disclosed in Schedule 8 of the financial statements as per the applicable provisions of the Banking Regulation Act, 1949.


There is no change in the subsidiaries and associates of the Bank during fiscal 2021. The Bank does not have any joint venture company. As at March 31, 2021, your Bank had following subsidiaries (16) and associate (8) Companies:

Name of the Subsidiary Company % of shares held
ICICI Bank Canada 100
ICICI Securities Limited 75.00
ICICI Securities Holding Inc.1 100
ICICI Securities Inc.2 100
ICICI Securities Primary Dealership Limited 100
ICICI Venture Funds Management Company Limited 100
ICICI Home Finance Company Limited 100
ICICI Trusteeship Services Limited 100
ICICI Investment Management Company Limited 100
ICICI International Limited 100
ICICI Prudential Pension Funds Management Company Limited3 100
ICICI Prudential Life Insurance Company Limited 51.37
ICICI Lombard General Insurance Company Limited 51.88
ICICI Prudential Asset Management Company Limited 51.00
ICICI Prudential Trust Limited 50.80


1 ICICI Securities Holding Inc. is a wholly owned subsidiary o^ ICICI Securities Limited.

2 ICICI Securities Inc. is a wholly owned subsidiary of ICICI Securities Holding Inc.

3 ICICI Prudential Pension Funds Management Company Limited is a wholly owned subsidiary of ICICI Prudential Life Insurance Company Limited.

Name of the Associate Company % of shares held
I-Process Services (India) Private Limited 19.00
NIIT Institute of Finance Banking and Insurance Training Limited 18.79
ICICI Merchant Services Private Limited 19.01
India Infradebt Limited 42.33
Arteria Technologies Private Limited 19.98
Rajasthan Asset Management Company Private Limited# 24.30
OTC Exchange of India Limited# 20.00
Falcon Tyres Limited# 26.39


# These companies are not considered as associates in the financial statements, in accordance with the provisions of /4S 23 on Accounting for Investments in Associates in Consolidated Financial Statements.


The performance of subsidiaries and associates and their contribution to the overall performance of the Bank as on March 31, 2021 is given in "Consolidated Financial Statements of ICICI Bank Limited - Schedule 18 - Note 12 - Additional information to consolidated accounts" of this Annual Report. A summary of key financials of the Banks subsidiaries is also given in "Statement Pursuant to Section 129 of Companies Act, 2013" of this Annual Report.

The highlights of the performance of key subsidiaries are given as a part of Managements Discussion & Analysis under the section "Consolidated financials as per Indian GAAP".

The Bank will make available separate audited financial statements of the subsidiaries to any Member upon request. These documents/details will be available on the Banks website at annual.html and will also be available for inspection by any Member or trustee of the holder of any debentures of the Bank. As required by Accounting Standard 21 (AS-21) issued by the Institute of Chartered Accountants of India, the Banks consolidated financial statements included in this Annual Report incorporate the accounts of its subsidiaries and other consolidating entities.


There are no significant and/or material orders passed by the regulators or courts or tribunals impacting the going concern status or future operations of the Bank.


The COVID-19 pandemic has impacted most economies and banking systems globally, including India. The nationwide lockdown in April-May 2020 substantially impacted economic activity. The easing of lockdown measures subsequently led to gradual improvement in economic activity and progress towards normalcy. For the banking sector, these developments resulted in lower demand for loans and fee-based services and regulatory measures like moratorium on payment of dues and standstill in asset classification to mitigate the economic consequences on borrowers. It also resulted in increase in provisioning reflecting higher actual and expected additions to nonperforming loans following the cessation of moratorium and asset classification standstill. Pursuant to the second wave of COVID-19 pandemic since March 2021, the number of new cases has increased significantly across India in both urban and rural areas and it has resulted in re-imposition of localised/regional lock-down measures in various parts of the country.

In these challenging times, the Banks employees have shown strong resilience and the ability to adapt to changing circumstances. The health and well-being of employees and customers and business continuity is of utmost importance to the Bank. The Bank formed a quick response team to take steps to protect the health of the employees and provide essential services to the customers. About 97% of the branches were functional with reduced working hours during the national lockdown in fiscal 2021. The branches were staffed based on the customer footfalls and employees were rostered. Excluding the employees working at the branches and some of the team members from Operations and IT, the majority of the employees continue to work from home. The Bank continues to do a thorough risk assessment for augmenting IT security controls and curb any gaps and potential threats in the current working arrangement.

The Bank continues to see opportunities to grow and strengthen its franchise and it is using these opportunities to further accelerate the digital journey of the Bank and its customers. In March 2020, the Bank launched a comprehensive digital banking platform called ICICI STACK which offers nearly 500 services to ensure uninterrupted banking experience to retail, business banking, SME and corporate customers. Other major digital initiatives include WhatsApp banking, Video KYC for digital onboarding of customers, cardless cash withdrawal at ATMs and a mobile banking app, iMobile Pay, that extends the mobile banking facility to non-ICICI Bank customers. We have launched digital products like InstaBIZ and supply chain financing solutions for our small business customers including APIs from the API Banking Portal to integrate various payment and product solutions. Our digital offerings for large corporates and their ecosystems include digital platforms for domestic and international trade and industry specific solutions across the value chain. The Bank is seeing increased utilisation of its digital channels and platforms by its customers and has ensured that the IT infrastructure is able to handle any unexpected surge in digital transactions. The Bank continues to monitor the situation in the country and would take necessary steps to ensure safety of its people and continuity of its business operations. In its effort to support the nation in its fight against the COVID-19 outbreak, the ICICI Group has committed a sum of Rs. 1.00 billion, including Rs. 800.0 million to the PM Cares Fund. ICICI Bank and ICICI Foundation have worked actively to assist various agencies including hospitals, the police, paramilitary forces, municipalities and government bodies in their tireless efforts to safeguard the citizens of the country.

Going forward, economic activity will depend on the trajectory of the COVID-19 pandemic, the progress of the vaccination programme and the restrictions on activity and the period for which they continue. A prolonged period of economic weakness caused by the second wave of the pandemic and uncertainty regarding normalisation could continue to impact banking sector loan growth, revenues, margins, asset quality and credit costs in fiscal 2022. In view of the continuing uncertainties and rising risks in the operating environment, the Bank would continue to focus on ensuring a resilient balance sheet and maintaining strong capital levels. The Banks capital and liquidity position is strong and would continue to be a focus area for the Bank during this period.


There are no material changes and commitments affecting the financial position of the Bank which have occurred between the end of the financial year of the Bank to which the financial statements relate and the date of this Report. For the impact of COVID-19 on the performance of the Bank and the Group, refer "note no. 59 of schedule 18 - Notes forming part of the accounts" of financial statements of the Bank and "note no. 19 of schedule 18 - Notes forming part of the accounts" of consolidated financial statements of the Bank.


Changes in the composition of the Board of Directors and other Key Managerial Personnel

The Members at the last Annual General Meeting (AGM) held on August 14, 2020 approved the re-appointment of Vishakha Mulye as a wholetime Director (designated as Executive Director) for a period of five years effective from January 19, 2021, subject to the approval of Reserve Bank of India (RBI). RBI through its letter dated January 8, 2021 approved the re-appointment of Vishakha Mulye as Executive Director of the Bank for a period of three years effective from January 19, 2021.

Further, the Members at the last AGM approved the re-appointment of Girish Chandra Chaturvedi as an Independent Director of the Bank for a period of three years effective from July 1, 2021. The Members also approved the re-appointment of Girish Chandra Chaturvedi as Non-Executive (part-time) Chairman of the Bank for a period of three years effective from July 1, 2021, subject to the approval of RBI. RBI through its letter dated June 8, 2021 approved the re-appointment of Girish Chandra Chaturvedi as Non-Executive (part-time) Chairman of the Bank for a period of three years with effect from July 1,2021.

RBI through its letter dated December 22, 2020 communicated its approval for the appointment of Sandeep Batra as Executive Director of the Bank for a period of three years from the date of his taking charge as Executive Director. The Board of Directors through a circular resolution dated December 23, 2020 recorded December 23, 2020 as the effective date of appointment and taking charge by Sandeep Batra as Executive Director of the Bank.

The Board of Directors on April 24, 2021 based on the recommendation of the Board Governance, Remuneration & Nomination Committee approved the re-appointment of Anup Bagchi as a wholetime Director (designated as Executive Director) for a period of five years or date of retirement, whichever is earlier, effective from February 1, 2022, subject to the approval of Members and RBI. The re-appointment is being proposed in the Notice of the forthcoming AGM through item no.10.

In terms of Section 203(1) of the Companies Act, 2013, Sandeep Bakhshi, Managing Director & CEO, Anup Bagchi, Executive Director, Sandeep Batra, Executive Director, Vishakha Mulye, Executive Director, Rakesh Jha, Chief Financial Officer and Ranganath Athreya, Company Secretary are the Key Managerial Personnel of the Bank.

Declaration of Independence

All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149 of the Companies Act, 2013 as amended (the Act) and Regulation 16 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (SEBI Listing Regulations) which have been relied on by the Bank and were placed at the Board Meeting held on April 24, 2021. In the opinion of the Board, the Independent Directors fulfil the conditions specified in the Act and the SEBI Listing Regulations and are independent of the Management.

Retirement by rotation

In terms of Section 152 of the Companies Act, 2013, Sandeep Bakhshi would retire by rotation at the forthcoming AGM and is eligible for re-appointment. Sandeep Bakhshi has offered himself for re-appointment.


Statutory Auditors

M/s Walker Chandiok & Co LLP Chartered Accountants were re-appointed as auditors by the Members at their Twenty-Sixth Annual General Meeting (AGM) held on August 14, 2020 to hold office till conclusion of the Twenty-Seventh AGM. M/s Walker Chandiok & Co LLP, Chartered Accountants, have been auditors of the Company for three consecutive years, which is the maximum term for statutory auditors of banking companies as per the circular issued by Reserve Bank of India (RBI) on Guidelines for Appointment of Statutory Central Auditors (SCAs)/Statutory Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including HFCs), dated April 27, 2021. Hence they would be retiring at the conclusion of the forthcoming AGM. The Audit Committee and the Board of Directors have placed on record their appreciation of the professional services rendered by M/s Walker Chandiok & Co LLP during their association with the Company as its auditors.

As per the above-mentioned RBI guideline, the statutory audit needs to be conducted under joint audit of a minimum of two audit firms with effect from FY2022. Accordingly, as recommended by the Audit Committee, the Board has proposed the appointment of M/s MSKA & Associates, Chartered Accountants and M/s Khimji Kunverji & Co LLP, Chartered Accountants as Joint Statutory Auditors for the year ending March 31, 2022 (fiscal 2022). Their appointment has been approved by RBI on July 8, 2021. The appointment of the auditors is being proposed to the Members in the Notice of the forthcoming AGM through item nos. 4 and 5.

There are no qualifications, reservation or adverse remarks made by the current statutory auditors in the audit report.

Secretarial Auditors

The Board appointed M/s. Parikh Parekh & Associates, a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Bank for fiscal 2021. The Secretarial Audit Report is annexed herewith as Annexure A. There are no qualifications, reservation or adverse remark or disclaimer made by the auditor in the report save and except disclaimer made by them in discharge of their professional obligation.

The Annual Secretarial Compliance Report for fiscal 2021 is available on the website of the Bank at and on the websites of the stock exchanges i.e. BSE Limited at and National Stock Exchange of India Limited at

Maintenance of Cost Records

Being a Banking Company, the Bank is not required to maintain cost records as specified by the Central Government under Section 148(1) of the Companies Act, 2013.

Reporting of Frauds by Auditors

During the year under review, there were no instances of fraud reported by the statutory auditors, branch auditors and secretarial auditor under Section 143(12) of the Companies Act, 2013 to the Audit Committee or the Board of Directors.


The statement containing particulars of employees as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given in an Annexure and forms part of this report. In terms of Section 136(1) of the Companies Act, 2013, the annual report and the financial statements are being sent to the Members excluding the aforesaid Annexure. The Annexure is available for inspection and any Member interested in obtaining a copy of the Annexure may write to the Company Secretary of the Bank.


The Bank has adequate internal controls and processes in place with respect to its financial statements which provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements. These controls and processes are driven through various policies, procedures and certifications. The processes and controls are reviewed periodically. The Bank has a mechanism of testing the controls at regular intervals for their design and operating effectiveness to ascertain the reliability and authenticity of financial information.


The Bank has obtained a certificate from its statutory auditors that it is in compliance with the Foreign Exchange Management Act, 1999 provisions with respect to investments made in its consolidated subsidiaries and associates during fiscal 2021.


The Bank has a Board-approved Group Arms Length Policy which requires transactions with the group companies to be at arms length. All the related party transactions between the Bank and its related parties, entered during the year ended March 31, 2021, were on arms length basis and were in the ordinary course of business. There were no related party transactions to be reported under section 188(1) of the Companies Act 2013, in Form No. AOC-2, pursuant to Rule 8(2) of the Companies (Accounts) Rules, 2014.

All related party transactions as required under Accounting Standard AS-18 are reported in note no. 50 of schedule 18 - Notes to Accounts of standalone financial statements and note no. 2 of schedule 18 - Notes to Accounts of consolidated financial statements of the Bank.

The Bank has a Board-approved policy on Related Party Transactions, which has been disclosed on the website of the Bank and can be viewed at (https://www.ICICIbank. com/aboutus/


The Annual Return in Form No. MGT-7 will be hosted on the website of the Bank at ( aboutus/annual.html).


The Business Responsibility Report as stipulated under Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 will be hosted on the Banks website at ( Any Member interested in obtaining a copy of the Report may write to the Company Secretary of the Bank.

The Bank has been releasing the Environmental, Social and Governance Report since fiscal 2020. The report for fiscal 2021 will be hosted on the Banks website at (


The Bank has adopted the principles of the International Integrated Reporting Framework as developed by the International Integrated Reporting Council (IIRC) in its Annual Report since fiscal 2019. For accessing the Report for fiscal 2021, please refer to the Integrated Report section of the Annual Report 2020-21.


The Banks risk management framework is based on a clear understanding of various risks, disciplined risk assessment and measurement procedures and continuous monitoring. The Board of Directors has oversight on all the risks assumed by the Bank. Specific Committees have been constituted to facilitate focused oversight of various risks, as follows:

• The Risk Committee of the Board inter alia reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational and outsourcing risks and business continuity management. The Committee also reviews the Risk Appetite and Enterprise Risk Management frameworks, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing. The stress testing framework includes a range of Bank-specific market (systemic) and combined scenarios. The ICAAP exercise covers the domestic and overseas operations of the Bank, banking subsidiaries and non-banking subsidiaries. The Committee reviews setting up of limits on any industry or country, migration to the advanced approaches under Basel II and implementation of Basel Ill and the activities of the Asset Liability Management Committee. The Committee reviews the level and direction of major risks pertaining to credit, market, liquidity, operationaI, reputation, technology, information security, compliance, group and capital at risk as a part of the risk dashboard. In addition, the Committee has oversight on risks of subsidiaries covered under the Group Risk Management Framework. The Risk Committee also reviews the Liquidity Contingency Plan for the Bank and the various thresholds set out in the Plan.

• The Credit Committee of the Board, apart from sanctioning credit proposals based on the Banks credit approval authorisation framework, reviews developments in key industrial sectors (along with exposure to these sectors), the Banks exposure to large borrower accounts and borrower groups. The Credit Committee also reviews major credit portfolios, non-performing loans, accounts under watch, overdues, incremental sanctions etc.

• The Audit Committee of the Board provides direction to and monitors the quality of the internal audit function, oversees the financial reporting process and also monitors compliance with inspection and audit reports of RBI, other regulators and statutory auditors.

• The Asset Liability Management Committee provides guidance for management of liquidity of the overall Bank and management of interest rate risk in the banking book within the broad parameters laid down by the Board of Directors/Risk Committee.

Summaries of reviews conducted by these Committees are reported to the Board on a regular basis.

Policies approved from time to time by the Board of Directors/Committees of the Board form the governing framework for each type of risk. The business activities are undertaken within this policy framework. Independent groups and subgroups have been constituted across the Bank to facilitate independent evaluation, monitoring and reporting of various risks. These groups function independently of the business groups/subgroups.

The Bank has dedicated groups, namely, the Risk Management Group, Compliance Group, Corporate Legal Group, Internal Audit Group and the Financial Crime Prevention & Reputation Risk Management Group, with a mandate to identify, assess and monitor all of the Banks principal risks in accordance with well-defined policies and procedures. The Risk Management Group is further organised into Credit Risk Management Group, Market Risk Management Group, Operational Risk Management Group and Information Security Group. The Chief Risk Officer (CRO) reports to the Risk Committee constituted by the Board which reviews risk management policies of the Bank. The CRO for administrative purposes reports to an Executive Director in the Bank. The above mentioned groups are independent of all business operations and coordinate with representatives of the business units to implement the Banks risk management policies and methodologies.

The Internal Audit Group acts as an independent entity and is responsible to evaluate and provide objective assurance on the effectiveness of internal controls, risk management and governance processes within the Bank and suggest improvements. The Internal Audit Group maintains appropriately qualified personnel to fulfill its responsibilities. The Internal Audit and Compliance groups are responsible to the Audit Committee of the Board.


The Bank has a policy against sexual harassment and a formal process for dealing with complaints of harassment or discrimination. The said policy is in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. The Bank has complied with provisions relating to the constitution of Internal Complaints Committee under the said Act.

Pursuant to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details pertaining to number of complaints during the year has been provided below:

a. number of complaints filed during the financial year: 33

b. number of complaints disposed of during the financial year: 33

c. number of complaints pending1 at end of the financial year: Nil


1 All complaints received during fiscal 2021 have been closed within the applicable turnaround time (90 days).