Performance Review Q1:FY 2001-02

Performance ReviewQ1:FY 2001-02

July 27, 2001

2

Contents

Financial Performance

Business Overview

Operational Performance

Asset Composition and Quality

Capital and Shareholders

3

Summary Performance (Indian GAAP)

Q1FY 01

Q1FY 02

Inc. % FY2001

Profit to equity holders 2.69 3.26 20.7 13.32(1)

Total assets 658.30 747.51 13.6 734.14Disbursals 82.40 87.41 6.1 319.65Net NPA 7.5% 5.1% - 5.2%

Q1FY 01

Q1FY 02

Inc. % FY2001

Profit to equity holders 2.69 3.26 20.7 13.32(1)

Total assets 658.30 747.51 13.6 734.14Disbursals 82.40 87.41 6.1 319.65Net NPA 7.5% 5.1% - 5.2%

Rs. in billion

21% increase in profit to equity holders

(1) After adding back accelerated provisions of Rs. 8.13 bn

4

Profit and Loss Statement

Q1FY 01

Q1FY 02

Inc.%

FY2001

Fund-based income 20.01 22.07 10.3 82.11

Less: Interest & relatedexpenses and Lease dep. 16.26 18.36 13.0 69.12

Net fund based income 3.75 3.71 (1.1) 12.99

Fees and commissions 0.98 1.66 68.8 5.22

Net i/c from operations 4.73 5.37 13.5 18.21

Operating expenses 0.83 0.78 (6.9) 3.37

Profit from operations 3.90 4.59 17.8 14.84

Q1FY 01

Q1FY 02

Inc.%

FY2001

Fund-based income 20.01 22.07 10.3 82.11

Less: Interest & relatedexpenses and Lease dep. 16.26 18.36 13.0 69.12

Net fund based income 3.75 3.71 (1.1) 12.99

Fees and commissions 0.98 1.66 68.8 5.22

Net i/c from operations 4.73 5.37 13.5 18.21

Operating expenses 0.83 0.78 (6.9) 3.37

Profit from operations 3.90 4.59 17.8 14.84

Rs. in billion

5


Q1FY 01

Q1FY 02

Inc.%

FY2001

Profit from operations 3.90 4.59 17.8 14.84Less : Provisions & write-offs 1.15 1.09(1) (4.4) 6.08Profit before income frominvestments and otherincome 2.75 3.50 27.1 8.76Dividend 0.51 0.45 (12.2) 1.08Net capital gains (0.21) (0.13) -- 3.44Other income 0.08 0.04 -- 0.63Profit before tax andaccelerated provisions 3.13 3.86 23.0 13.91

Q1FY 01

Q1FY 02

Inc.%

FY2001

Profit from operations 3.90 4.59 17.8 14.84Less : Provisions & write-offs 1.15 1.09(1) (4.4) 6.08Profit before income frominvestments and otherincome 2.75 3.50 27.1 8.76Dividend 0.51 0.45 (12.2) 1.08Net capital gains (0.21) (0.13) -- 3.44Other income 0.08 0.04 -- 0.63Profit before tax andaccelerated provisions 3.13 3.86 23.0 13.91

Rs. in billion

(1) Includes Rs.0.32 bn on account of provision for restructured assets

6


Q1FY 01

Q1FY 02

Inc.%

FY2001

Profit before tax andaccelerated provisionsand write-offs 3.13 3.86 23.0 13.91Accelerated provisionsand write-offs - - - 8.13Less : Provision for tax 0.26 0.60(1) 130.8 0.40Profit after tax 2.87 3.26 13.3 5.37Less: Preference div 0.18 - - 0.18Profit to equity holders 2.69 3.26 20.7 5.19Profit to equity holdersafter adding backaccelerated provision 2.69 3.26 20.7 13.32

Q1FY 01

Q1FY 02

Inc.%

FY2001

Profit before tax andaccelerated provisionsand write-offs 3.13 3.86 23.0 13.91Accelerated provisionsand write-offs - - - 8.13Less : Provision for tax 0.26 0.60(1) 130.8 0.40Profit after tax 2.87 3.26 13.3 5.37Less: Preference div 0.18 - - 0.18Profit to equity holders 2.69 3.26 20.7 5.19Profit to equity holdersafter adding backaccelerated provision 2.69 3.26 20.7 13.32

Rs. in billion

(1) Provision for tax made as per the new accounting standard on deferred taxation

7

Balance SheetAssets Jun 30,

2000Jun 30,

2001Inc.%

Mar 31,2001

Net loans &Debentures

505.02 571.97 13.3 560.02

- Rupee loans 343.74 420.91 22.5 400.45- Retail loans 6.92 24.21 250.0 20.40- Debentures 71.99 61.75 (14.2) 67.47- FC loans 93.75 78.55 (16.2) 84.74

- Less :Provisions 11.38 13.45 18.2 13.04Otherinvestments 33.70 44.61 32.4 44.04Current assets 71.23 70.05 (1.66) 75.83Leased assets 35.81 39.54 10.4 40.69Other fixedassets 9.04 18.03(1) 99.4 10.42Misc. Exp. 3.50 3.30 (5.5) 3.14Total assets 658.30 747.51 13.6 734.14

Assets Jun 30,2000

Jun 30,2001

Inc.%

Mar 31,2001

Net loans &Debentures

505.02 571.97 13.3 560.02

- Rupee loans 343.74 420.91 22.5 400.45- Retail loans 6.92 24.21 250.0 20.40- Debentures 71.99 61.75 (14.2) 67.47- FC loans 93.75 78.55 (16.2) 84.74

- Less :Provisions 11.38 13.45 18.2 13.04Otherinvestments 33.70 44.61 32.4 44.04Current assets 71.23 70.05 (1.66) 75.83Leased assets 35.81 39.54 10.4 40.69Other fixedassets 9.04 18.03(1) 99.4 10.42Misc. Exp. 3.50 3.30 (5.5) 3.14Total assets 658.30 747.51 13.6 734.14

Rs. in billion

(1) Include Rs.7.20 bn of revaluation reserves

8

Balance Sheet

Liabilities Jun 30,2000

Jun 30,2001

Inc.%

Mar 31,2001

Shareholders’ equity 83.03 90.18 8.6 79.73- Equity capital 7.84 7.85 0.1 7.85- Reserves and surplus 75.19 82.33(1) 9.5 71.88Preference capital 3.59 3.50 (2.4) 3.50Borrowings 520.87 600.84 15.4 598.35- Rupee funds 434.52 502.71 15.7 497.34- Foreign currency funds 86.35 98.13 13.7 101.01Current liab. & Provns. 50.81 52.99 4.3 52.56Total liabilities 658.30 747.51 13.6 734.14

Liabilities Jun 30,2000

Jun 30,2001

Inc.%

Mar 31,2001

Shareholders’ equity 83.03 90.18 8.6 79.73- Equity capital 7.84 7.85 0.1 7.85- Reserves and surplus 75.19 82.33(1) 9.5 71.88Preference capital 3.59 3.50 (2.4) 3.50Borrowings 520.87 600.84 15.4 598.35- Rupee funds 434.52 502.71 15.7 497.34- Foreign currency funds 86.35 98.13 13.7 101.01Current liab. & Provns. 50.81 52.99 4.3 52.56Total liabilities 658.30 747.51 13.6 734.14

Rs. in billion

(1) Include Rs.7.20 bn of revaluation reserves.. No deferred tax liability relating to earlier years has been created. If such liability was created, the reserves would have been lower by Rs. 3.39 bn.

9

Summary Ratios (Indian GAAP)...

Q11

FY 01Q11

FY 02FY20012

EPS (Rs) 14.4 16.6 17.0

Return on Assets (%) 1.9 1.9 2.1

Return on Net Worth (%) 14.6 16.4 16.4

Overheads/Net Incomefrom operations 3 15.9 13.4 17.4Overheads/Average NetAssets 0.6 0.5 0.5

Q11

FY 01Q11

FY 02FY20012

EPS (Rs) 14.4 16.6 17.0

Return on Assets (%) 1.9 1.9 2.1

Return on Net Worth (%) 14.6 16.4 16.4

Overheads/Net Incomefrom operations 3 15.9 13.4 17.4Overheads/Average NetAssets 0.6 0.5 0.5(1) Annualised (2) After adding back accelerated provisions and write-offs of Rs. 8.13 billion(3) Net income from operations includes net fund-based income, fees & commissions and dividend income

10

Consolidated profits: Indian GAAP

Q1FY 01

Q1FY 02

Profit after tax of ICICI 2.87 3.26

ICICI’s share of income fromsubsidiaries/affiliates 0.40 0.85

Dividend elimination (0.30) (0.40)

Consolidated profit 2.97 3.71

Q1FY 01

Q1FY 02

Profit after tax of ICICI 2.87 3.26

ICICI’s share of income fromsubsidiaries/affiliates 0.40 0.85

Dividend elimination (0.30) (0.40)

Consolidated profit 2.97 3.71

Rs. in billion

25% Growth inConsolidated Profit

11

Consolidated profit: US GAAP

Q1FY 01

Q1FY 02

Income before tax 2.75 3.34

Net income beforecumulative effect ofaccounting change(1) 2.31 2.51

Total stockholder’s equity 71.84 73.99

Total assets 656.89 753.29

Q1FY 01

Q1FY 02

Income before tax 2.75 3.34

Net income beforecumulative effect ofaccounting change(1) 2.31 2.51

Total stockholder’s equity 71.84 73.99

Total assets 656.89 753.29

Rs. in billion

21% Growth inIncome before Tax

(1) Net income, including the cumulative effect of accounting changeof Rs. 1.27 billion, is Rs. 3.77 billion in Q1-FY02.

12

Consolidated US GAAP Accounts The balance sheet does not include the deferred tax

asset arising out of 'other than temporary' diminution on investments charged to the income statement in prior years. Inclusion of such asset could have a positive impact of upto Rs. 0.96 billion on stockholders' equity at March 31, 2001. However, the exact amount will be ascertained on evaluation of likely realization of the deferred tax asset by the management. This change will be incorporated in the Form 20-F, as a correction to the financial statements for financial year 2001, to be filed with the U.S. SEC

13

Reconciliation of net income - US GAAP Rs. in billion

Q1FY 01

Q1FY 02

As per Indian GAAP 2.87 3.26Provisions for credit losses (0.21) (0.67)Amortisation of loan origination fees (0.07) (0.16)Business combination in respect of mergers (0.03) (0.02)Investment diminution (0.13) (0.27)Preference dividend payout (0.17) --MTM loss on trading/hedging portfolio (0.02) 0.08Investment in equity affiliates 0.13 0.02Net income of consolidated subsidiaries 0.01 0.11Others (0.07) 0.16Total adjustments as per US GAAP (0.56) (0.75)

As per US GAAP (1) 2.31 2.51

Q1FY 01

Q1FY 02

As per Indian GAAP 2.87 3.26Provisions for credit losses (0.21) (0.67)Amortisation of loan origination fees (0.07) (0.16)Business combination in respect of mergers (0.03) (0.02)Investment diminution (0.13) (0.27)Preference dividend payout (0.17) --MTM loss on trading/hedging portfolio (0.02) 0.08Investment in equity affiliates 0.13 0.02Net income of consolidated subsidiaries 0.01 0.11Others (0.07) 0.16Total adjustments as per US GAAP (0.56) (0.75)

As per US GAAP (1) 2.31 2.51

(1) Excludes cumulative effect of accounting change

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Contents


Business Overview




15

Maintaining business leadership & profitability has been the thrust of our strategies...

16

…with a sharper focus on the client

Client Relationship

Ensuring that clients derive maximum advantage from market opportunities

Position ICICI as a solution provider for every financial need

Client Relationship

Credit Operations

Credit Operations

Evaluate and mitigate key risks, minimize residual risk on our business operations and review exposures

Seamless delivery of credit

Enhancing the credit quality

Client

17

Customer Segmentation

Large Corporates

Differentiate from competition based on innovation and speed

Mid cap companies

Partner growth with a complete product suite

PSUs and Govt

Institutions

Focus on high quality corporate finance, structured finance and

transaction services

18

`

Public issuance

WC Banking

Corporate

Treasury

I- Banking

Term Loans Non-fund basedCash Management

CP MIBOR Linked PapersForexDebentures

Debt Placements

M&A Activity

EscrowSmall Business Finance

Trade Finance Dividend Warrants

ATMRetail Banking

Power Pay Credit Cards

Personal Banking

Consumer Loans

Auto Loans Home LoansPFS

Cross-sell profile - Large Diversified Conglomerate

Extensive cross-selling to large clients …

19

`

Public issuance

WC Banking

Corporate

Treasury

I- Banking

Term Loans Non-fund basedCash Management

CP MIBOR Linked PapersForexDebentures

Debt Placements

M&A Activity

EscrowSmall Business Finance

Trade FinanceDividend Warrants

ATMRetail Banking

Power Pay Credit Cards Personal Banking

Consumer Loans

Auto Loans Home LoansPFS

Cross-sell profile - Automotive Company

… has been rolled-out to mid-cap companies also

20

Focus on the Government segment…

Dedicated Government & Institutional group (GIG)

• Government Departments

• Central and State level institutions

• Municipal corporations

• Public Sector Companies

• Quasi-Government Bodies

21

PSU Divestment Advisory MandatesPSU Divestment Advisory Mandates

Cash Management, Payroll and Current Accounts

Cash Management, Payroll and Current Accounts

Utility Bill paymentUtility Bill payment

Resource raisingResource raising

Home finance for State Housing Board projects

Home finance for State Housing Board projects

…with significant cross-selling

22

Telecom

Maintaining leadership in infrastructure finance...

Transportation and Urban

Infrastructure

Energy, Oil & Gas

•As member of sub-group under the Group on Telecom and IT Convergence, ICICI has been working on Communication Convergence Bill 2000

•Financial closure for a state cellular operator with ICICI as lead arranger

•Earnest money bank guarantees for 4th cellular license bidding

•Performance guarantees for National Long Distance operator

• Investment of Rs. 1,500 bn by 2007 subject to a stable policy framework

• Mobile subscribers to increase to 15 mn by 2007 from 4 mn currently

• Fixed lines to increase to 70 mn by 2007 from 32 lines mn currently (largely by BSNL / MTNL)

• 2/3 more long distance operators expected• 2/3 more international gateways expected

23


•Assistance to urban local bodies for water supply projects•Syndicate leader for a chemical port terminal project •Underwrote senior debt for expressway-cum-area

development project

• Outstanding issues in concessions & bidding process continue to delay investment proposals of over Rs. 40 billion in transportation sector

• Breakthroughs in urban sector despite slow pace of reforms

TelecomTransportation and Urban

Infrastructure

Energy, Oil & Gas

24


Telecom

Transportation and Urban

Infrastructure

Energy, Oil & Gas

•Working closely with the Ministry of Power to resolve systematic issues through policy formulation

•Refinancing for the first operating IPP in the hydro sector

• Systemic issues continued to dissuade private investments, particularly in the power sector

25

Growth in Structured Finance

Range of structured transactionsRange of structured transactions

Purchase of deferred sales tax receivables of corporate entities

Purchase of deferred sales tax receivables of corporate entities

Revolving line for securitisation of receivables

Revolving line for securitisation of receivables

Corporate Loan securitisation

Active secondary market for the paper

Corporate Loan securitisation

Active secondary market for the paper

Financing public utilities with escrow of charges and sub-ordination of loan obligations

Financing public utilities with escrow of charges and sub-ordination of loan obligations

26

Retail Finance

Home LoansHome Loans

• 58% growth in approvals

• Presence in 61 cities

• Six Sigma initiative for process streamlining

• 58% growth in approvals


• Six Sigma initiative for process streamlining

Auto FinanceAuto Finance

• Car loans cross 10% of sales of all cars in India in Q1-2002

• Market share of 10% in two-wheeler finance


• Car loans cross 10% of sales of all cars in India in Q1-2002

• Market share of 10% in two-wheeler finance


ICICI Web TradeICICI Web Trade

• India’s Leading online share trading site with 63% market share

• Trading for institutions launched in Q1

• First company in Asia to receive KPMG Web Seal

• India’s Leading online share trading site with 63% market share

• Trading for institutions launched in Q1

• First company in Asia to receive KPMG Web Seal

27

Contents


Business Overview




28

Approvals: Thrust on corporate finance & retail...

Corporate Finance

51%

Infra28%

Mfg. Projects11%

Retail4%Oil & Gas

6%

Corporate Finance

84%

Infra3%

Mfg. Projects3%

Retail10%

Rs. 166.46 billion Rs. 131.52 billion

-1 01Q FY-1 01Q FY - 1 02- 1 02Q FY

29

Disbursements: Continued growth and diversification......

Corporate Finance

77%

Infra7%

Mfg. Projects

9%

Retail7%

Corporate Finance

69%

Infra9%

Mfg. Projects

9%

Retail13%

Rs. 82.40 billion Rs. 87.41 billion

-1 01Q FY-1 01Q FY -1 02Q FY-1 02Q FY

30

Q1- FY01 Q1- FY02

A- & above

Below A-87% 93%

13%7%

Improving quality of business...

Approvals to clients rated ‘A-’ & above up from 87% to 93%

Disbursements to clients rated ‘A-’ & above up from 89% to 92%

Q1-FY01 Q1-FY02

A- & above

Below A-89% 92%

11% 8%

Ap

pro

vals

Dis

bu

rsem

en

ts

31

Diversified and De-risked Asset Portfolio...

31 1997March , 31 1997March ,

Oil & Gas9%

Mfg. Project Finance

73%

Corp. Financ

e9%

Infrastructure9%

Rs. 297.83 billion

30 2001June , 30 2001June ,

Infrastructure13%

Mfg. Project Finance

35%

Corp. Finance

41% Oil & Gas7%

Retail4%

Rs. 662.37 billion

Reduced Risk and

Volatility of Earnings Stream

32

Contents


Business Overview




33

Top 10 Industry-wise Exposure1

Industry June 30,2001

March 31,2001

Services 13.5 12.8Iron & Steel 11.2 11.4Power 11.1 11.0Crude petroleum & refining 8.2 9.5Chemical & chemical products 7.1 7.3Textiles 6.3 7.1Cement 4.2 3.9Telecom 3.9 3.6Transport Equipment 3.5 3.1Electronics 2.9 2.5

Industry June 30,2001

March 31,2001

Services 13.5 12.8Iron & Steel 11.2 11.4Power 11.1 11.0Crude petroleum & refining 8.2 9.5Chemical & chemical products 7.1 7.3Textiles 6.3 7.1Cement 4.2 3.9Telecom 3.9 3.6Transport Equipment 3.5 3.1Electronics 2.9 2.5

*Excluding retail finance

% to total

34

Asset Classification

June 30,2000

June 30,2001

March 31,2001

Standard assets 92.5 94.9 94.8

Of which: Restructuredstandard assets - 4.6 2.2Sub-standard assets 2.1 1.6 1.5

Doubtful assets 5.4 3.5 3.7

Loss assets - - -

Total loan assets 100.0 100.0 100.0

June 30,2000

June 30,2001

March 31,2001

Standard assets 92.5 94.9 94.8

Of which: Restructuredstandard assets - 4.6 2.2Sub-standard assets 2.1 1.6 1.5

Doubtful assets 5.4 3.5 3.7

Loss assets - - -

Total loan assets 100.0 100.0 100.0

% of total

35

Continued focus on proactive restructuring...R

estr

uctu

rin

g

Close monitoring of steel cases in view of downturn in

the industry and import barriers in the US and Europe

Close monitoring of steel cases in view of downturn in

the industry and import barriers in the US and Europe

Satisfactory performance of accounts restructured earlierSatisfactory performance of

accounts restructured earlier

Significant progress in restructuring of inherently

viable accounts

Significant progress in restructuring of inherently

viable accounts

36

Non-Performing Loans (Indian GAAP)

June 30, 2000 June 30, 2001 March 31, 2001

Gross NPLs 62.51 60.89 1 59.881

Net NPLs 40.87 30.07 29.822

Net loan assets 544.85 591.86 575.06

Net NPL ratio 7.5% 5.1% 5.2%Mar 31, 1998

June 30, 2000 June 30, 2001 March 31, 2001

Gross NPLs 62.51 60.89 1 59.881

Net NPLs 40.87 30.07 29.822

Net loan assets 544.85 591.86 575.06

Net NPL ratio 7.5% 5.1% 5.2%Mar 31, 1998

Rs. in billion

(1) Excludes debentures in the nature of investments as per the RBI guidelines.

(2) Net of accelerated provisions and write-offs amounting to Rs. 8.13 billion.

37

Clear slow-down in incremental NPLs...

Mar 31,1998

Mar 31,1999

Mar 31,2000

Mar 31,2001

June 30,2001

Gross NPLs 42.12 54.89 60.18 59.881 60.891

% increase 49% 30% 10% (0.5%) 2%

Net NPLs 28.11 37.33 39.59 29.822 30.07

% increase 44% 33% 6% (25%) 0.8%

Mar 31,1998

Mar 31,1999

Mar 31,2000

Mar 31,2001

June 30,2001

Gross NPLs 42.12 54.89 60.18 59.881 60.891

% increase 49% 30% 10% (0.5%) 2%

Net NPLs 28.11 37.33 39.59 29.822 30.07

% increase 44% 33% 6% (25%) 0.8%

Rs. in billion

(1) Excludes debentures in the nature of investments as per the RBI guidelines.(2) Net of accelerated provisions and write-offs amounting to Rs. 8.13 billion.

38

Contents


Business Overview




39

Capital Adequacy...

9.7 9.6

5.0 5.5

0

2

4

6

8

10

12

14

16Per

cent

Tier-2

Tier-1

15.1%

March 31, 2001 June 30, 2001

14.7%

Tier - II capital at June 30, 2001 includes revaluation reserve on account of revaluation of fixed assets, as per the RBI guidelines

40

Shareholding Pattern

6.63%

23.47%

3.11%10.32%

8.71%

15.11%

32.65%

6.44%

23.47%

3.11%10.17%8.91%

15.25%

32.65%

UTI

Insurance cos.

Banks and FIs

Individuals

Corporatesand MFs

ADR holders

FIIs & NRIs

March 31, 2001

June 30, 2001

41

Thank You

Economy & Finance

Performance Review Q1:FY 2001-02