The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Vadodara today, approved the audited accounts of the Bank for the quarter ended June 30, 2008 (Q1-2009).

Highlights
• Core operating profit (operating profit excluding treasury) for Q1-2009 increased 74% to Rs. 2,308 crore (US$ 536 million) from Rs. 1,330 crore (US$ 309 million) for the quarter ended June 30, 2007 (Q1-2008).
• Net interest income increased 41% to Rs. 2,090 crore (US$ 486 million) for Q1-2009 from Rs. 1,479 crore (US$ 344 million) for Q1-2008.
• Fee income increased 37% to Rs. 1,958 crore (US$ 455 million) for Q1-2009 from Rs. 1,428 crore (US$ 332 million) for Q1-2008.

• Sharp increase in interest rates and adverse market conditions during the quarter had a negative impact of Rs. 594 crore (US$ 138 million) on the Bank’s trading portfolio and Statutory Liquidity Ratio (SLR) securities portfolio, and its treasury income in Q1-2009.

• Despite the negative impact on the Bank’s treasury income, profit after tax for Q1-2009 was Rs. 728 crore (US$ 169 million) compared to Rs. 775 crore (US$ 180 million) for Q1-2008.

• At June 30, 2008, ICICI Bank and its subsidiaries had consolidated total assets of Rs. 484,643 crore (US$ 112.6 billion).

Operating review

Deposit growth

Savings account deposits increased 35% to Rs. 43,465 crore (US$ 10.1 billion) at June 30, 2008 from Rs. 32,121 crore (US$ 7.5 billion) at June 30, 2007. Current and savings account (CASA) deposits constituted 27.6% of total deposits at June 30, 2008 compared to 22.4% at June 30, 2007. The Bank has significantly expanded its branch network to expand its reach and further enhance its deposit franchise. At July 21, 2008, the Bank had 1,388 branches and extension counters and 4,233 ATMs.

Credit growth

Consolidated advances of the Bank and its overseas banking subsidiaries and ICICI Home Finance Company increased 20% to Rs. 257,287 crore (US$ 59.8 billion) at June 30, 2008 from Rs. 215,293 crore (US$ 50.0 billion) at June 30, 2007.

International operations

ICICI Bank’s international business continued to focus on:

• Building a retail deposit base which gives the Bank access to low cost deposits on a sustainable basis: ICICI Bank UK Plc and ICICI Bank Canada raised about US$ 1.5 billion of retail deposits in Q1-2009.

• Being the preferred financier and adviser for overseas acquisitions by Indian corporates and strengthening the global syndication network:

The Bank was ranked #1 in offshore loan syndications of Indian corporates during January-June 2008.

• Being the preferred bank for non-resident Indians: The Bank’s remittance volumes increased by 35% in Q1-2009 to about Rs. 11,400 crore (US$ 2.6 billion) compared to Q1-2008.

Capital adequacy

The Bank’s capital adequacy at June 30, 2008 as per Reserve Bank of India’s revised guidelines on Basel II norms was 13.42% (including Tier-1 capital adequacy of 11.29%), well above RBI’s requirement of total capital adequacy of 9.0%.

Asset quality

At June 30, 2008, the Bank’s net non-performing assets constituted 1.74% of net customer assets1.

Performance highlights of insurance subsidiaries

ICICI Prudential Life Insurance Company (ICICI Life) increased its overall market share from 12.7% in FY2008 to 13.8% during April-May 2008 on the basis of retail new business weighted received premiums. ICICI Life’s new business weighted received premium increased by 46% in Q1-2009 to Rs. 1,178 crore (US$ 274 million). ICICI Life continued to grow its operations and new business volumes and expand its distribution infrastructure. While this resulted in the reduction of the consolidated profit after tax of ICICI Bank by Rs. 238 crore (US$ 55 million) in Q1-2009,

ICICI Life’s unaudited New Business Profit (NBP)2 in Q1-2009 was Rs. 240 crore (US$ 56 million). This translates into an NBP margin of 19.1%. The assets held by ICICI Life were Rs. 26,967 crore (US$ 6.3 billion) at June 30, 2008.

ICICI Lombard General Insurance Company (ICICI General) increased its overall market share from 11.9% in FY2008 to 13.3% during April-May 2008. ICICI General’s premiums increased 21% on a year-on-year basis to Rs. 1,077 crore (US$ 250 million) in Q1-2009. Despite pressure on pricing in the de-tariffed environment and continuing investment in distribution, the company maintained financial breakeven.

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