Journey of ICICI Bank

The Industrial Credit and Investment Corporation of India (ICICI) originated as on January 5, 1955, with Sir Arcot Ramasamy Mudaliar as its inaugural Chairman. It was established as a government institution, functioning as a joint venture involving the World Bank, India's public-sector banks, and public-sector insurance companies. Its primary mission was to provide project financing for Indian industries. The bank's registered office is located in Vadodara, Gujarat, where it was originally incorporated, and its corporate headquarters is situated in Mumbai, Maharashtra. In 1994, ICICI introduced ICICI Bank as a wholly-owned subsidiary. In October 2001, ICICI and ICICI Bank's Boards of Directors approved a merger that included ICICI, along with its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, being merged into ICICI Bank. This merger led to the privatisation of ICICI Ltd. During the 1990s, ICICI underwent a significant transformation from a development financial institution core priorityed solely on project finance to a diversified financial services group bringing forth a wide range of products and services. ICICI Bank initiated its Internet Banking operations in 1998. Notably, in 1999, ICICI became the first Indian company and the first non-Japan Asian bank or financial institution to be listed on the NYSE. In 2015, ICICI introduced an outward remittance platform called 'Money2World,' bringing forth fully online outward remittance transactions for both ICICI and non-ICICI customers. As of the Annual Report FY 2022-2023, the bank's consolidated total assets amounted to ₹15,842.07 billion. ICICI Bank is actively expanding its branch network, boasting a significant presence with 5,900 business centres (branches), along with an extensive network of 16,650 ATMs and Cash Recycler Machines, in addition to 1,102 Insta Banking Kiosks as of August 2023. The bank has also established two representative offices in the United States. Regarding its financial performance, ICICI Bank maintained a stable net NPA ratio of 0.48% as of June 30, 2023, which remained unchanged compared to March 31, 2023, and showed improvement from 0.70% reported on June 30, 2022.

ICICI Bank Business Segments

Here is a breakdown of some of the key business segments of ICICI Bank:

1. Retail and Corporate Banking:This group delivers deposit, credit, and other financial products and services to individuals, households, and small businesses across the country. The Retail Banking Group of ICICI Bank serves customer segments such as individuals, business banking, government, and retail institutions. ICICI Bank's retail loan portfolio includes home loans, personal loans, car loans, and other consumer loans. The retail loan portfolio grew by 22.7% year-on-year and 5.4% sequentially and comprised 54.7% of the total loan portfolio on March 31, 2023.
2. International Banking:ICICI Bank has a presence in various countries, including the United Kingdom, Russia, Canada, the United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Dubai International Finance Centre, and Qatar Financial Centre.
3. Wholesale Banking:This segment offers a range of banking services to large and mid-sized corporate clients, including working capital finance, trade services, cash management, and treasury solutions.
4. Investment Banking:ICICI Bank delivers investment banking services, including equity and debt capital markets, mergers and acquisitions, project finance, and more.
5. Wealth Management:ICICI Bank offers wealth management services, including investment advisory, portfolio management, and more.
6. Insurance:ICICI Limited has two insurance subsidiaries, ICICI Prudential Life Insurance Company Limited and ICICI Lombard General Insurance Company Limited, which offer life insurance and general insurance products, respectively.
7. Asset Management:ICICI Prudential Asset Management Company Limited is a subsidiary of ICICI Bank that delivers a wide range of investment products and services, including equity, debt, hybrid, and solution-oriented schemes.
8. Securities:ICICI Securities Limited is a subsidiary of ICICI Bank that delivers a range of financial market products, including equity, derivatives, currency, mutual funds, insurance, digital loans, and more.
9. Others:ICICI Limited also administers in other segments, including treasury operations, foreign exchange operations, and more.

The bank has more than 27 entities constituting subsidiaries, associates and joint ventures. Here are the four most popular subsidiaries of ICICI Bank Limited:

1. ICICI Prudential Asset Management Company Limited:ICICI Prudential AMC is one of India's leading asset management companies. It is the second-largest asset management company in India after the SBI Mutual Fund. The company manages assets worth over Rs. 5.1 Lakh Crore as of March 31, 2023. ICICI Prudential AMC delivers a wide range of investment products and services to its customers, including equity, debt, hybrid, and solution-oriented schemes. The company has grown from two locations and six employees in 1998 to over a thousand employees across 120 locations and more than 1.9 million investors in 2016.
2. ICICI Prudential Life Insurance Company Limited:ICICI Prudential Life Insurance Company Limited is a life insurance company in India. It delivers various life insurance products to meet the different life stage requirements of its customers. The company was established in 2001 as a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited. ICICI Prudential Life Insurance Company Limited has consistently been amongst the top companies in the Indian life insurance sector. The company's Assets Under Management (AUM) on June 30, 2023, were ₹2,664.20 billion.
3. ICICI Lombard General Insurance Company Limited:ICICI Lombard General Insurance Company Limited is the leading private general insurance company in India. The company offers a comprehensive and well-diversified range of products through its various channels of distribution. ICICI Lombard General Insurance Company Limited offers insurance products for health, motor, travel, home, and other areas.

ICICI Bank Management Team

• Sandeep Bakshi, MD &CEO

Sandeep Bakshi assumed his current role as MD of the bank on October 15, 2018. Prior to becoming MD, he served as a Wholetime Director and the COO of the Bank. Mr. Bakhshi is distinguished by a tenure of over three decades with the ICICI Group, starting in 1986. During his long-standing association with the group, he has undertaken diverse roles across various entities within the ICICI Group, including ICICI Lombard General Insurance, ICICI Bank, and ICICI Prudential Life Insurance.

ICICI BankCorporate Actions

Bonus

• The bank issued bonus shares at a ratio of 1:10, meaning one equity share for every 10 held, which was implemented on June 24, 2017.

Mergers and acquisitions

• ITC Classic Finance (1997): Acquired a non-bank financial firm engaged in hire, purchase, and leasing operations.
• SCICI (1997): Acquired Shipping Credit and Investment Corporation of India.
• Anagram (ENAGRAM) Finance (1998): Acquired a network of branches primarily engaged in retail financing of vehicles.
• Bank of Madura (2001): Added Bank of Madura to its portfolio.
• Grindlays Bank (2002): Acquired branches in Darjeeling and Shimla.
• Investitsionno-Kreditny Bank (IKB) (2005): Acquired a Russian bank.
• Sangli Bank (2007): Acquired a private sector unlisted bank with a significant presence in Maharashtra and Karnataka.
• The Bank of Rajasthan (BOR) (2010): Acquired for ₹30 billion and later merged with ICICI Bank.

ICICI BankFinancial Highlights

• In FY 2023, ICICI Bank recorded a net profit of ₹318.96 billion, marking a significant 36.54% increase from the ₹233.59 billion reported in FY 2022.
• Over the last 5 years, ICICI Bank has demonstrated robust growth in net profit, achieving a notable CAGR of 24.82%.