ICICI Bank : Annual Report FY2021

Digital

First

Insta Products

Seamless Payments

Future

Ready

Trustworthy

Building Resilience

Ecosystem

Banking

Partnerships

API Banking

Co-create Solutions

A c c e l e r a t i n g

Digitisation

Annual Report 2020-21

Our approach to reporting

About this report

This is ICICI Bank's Annual Report for the year ended March 31, 2021. It has been prepared in accordance with Indian regulatory reporting requirements as well as the principles of the International Integrated Reporting Framework as developed by the International Integrated Reporting Council (IIRC). Through this report, the Bank aims to provide its stakeholders a comprehensive view of its operations, performance, its financial and non-financial resources and strategy to create long-term value. The report provides insights into the Bank's primary activities, its strategic priorities, risks and mitigants, governance structure, and the manner in which it has leveraged the six capitals, namely Financial, Human, Intellectual, Manufactured, Social and Relationship, and Natural.

Reporting boundary

The non-financial information in the integrated report largely covers data on the India operations of ICICI Bank Limited and ICICI Foundation for Inclusive Growth.

Reporting period

The Annual Report provides material information relating to the Bank's strategy and business model, operating context, performance and statutory disclosures covering the financial year April 1, 2020 to March 31, 2021.

Safe Harbour

Certain statements in this Annual Report relating to a future period of time (including inter alia concerning our future business plans or growth prospects) are forward-looking statements intended to qualify for the 'safe harbour' under applicable securities laws including the US Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. These risks and uncertainties include, but are not limited to statutory and regulatory changes, international economic and business conditions; political or economic instability in the jurisdictions where we have operations, increase in non-performing loans, unanticipated changes in interest rates, foreign exchange rates, equity prices or other rates or prices, our growth and expansion in business, the adequacy of our allowance for credit losses, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks, changes in India's sovereign rating, and the impact of the Covid-19 pandemic which could result in fewer business opportunities, lower revenues, and an increase in the levels of non-performing assets and provisions, depending among other factors upon the period of time for which the pandemic extends, the remedial measures adopted by governments and central banks, and the time taken for economic activity to resume at normal levels after the pandemic, as well as other risks detailed in the reports filed by us with the United States Securities and Exchange Commission. Any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of the date of this release. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov.

Contents

01-56	INTEGRATED REPORT
	ICICI Bank at a Glance	2
	Key Business Areas	4
	Financial Highlights	6
	Message from the Chairman	8
	Board of Directors	10
	Message from the Wholetime Directors	11
	Responding to Covid-19	12
	Business Model	14
	Our Business Strategy	16
	Doing Business Responsibly	30
	Risk Governance Framework	32
	Key Risks Impacting the Bank's Business	34
	Human Capital	40
	Social and Relationship Capital	46
	Natural Capital	54

58-136 STATUTORY REPORTS
Directors' Report	58
Independent Auditor's Certificate on Corporate Governance	107
Management's Discussion & Analysis	108
Key Financial Indicators: Last 10 Years	136

137-314	Financial Statements
	Independent Auditors' Report - Financial Statements	138
	Financial Statements of ICICI Bank Limited	148
	Independent Auditors' Report - Consolidated Financial Statements	238
	Consolidated Financial Statements of ICICI Bank Limited and its Subsidiaries	256
	Statement Pursuant to Section 129 of Companies Act, 2013	311
	Basel Pillar 3 Disclosures	313
	Glossary of Terms	314

Annual Report 2020-21

Icici Bank at a Glance

ICICI Bank is a large private sector bank in India offering a diversified portfolio of financial products and services to retail, SME and corporate customers. The Bank has an extensive network of branches and ATMs. It is at the forefront of leveraging technology and offering services through digital channels like mobile and internet banking.

Vision

To be the trusted financial services provider of choice for our customers, thereby creating sustainable value for our stakeholders.

mission

To grow our risk-calibrated core operating profit by:

• Delivering products and services that create value for customers.

• Bringing together all our capabilities to seamlessly meet customer needs.
• Conducting our business within well-defined risk tolerance levels.

	`15.74 trillion		`313.51trillion		`161.93billion
	Consolidated Total Assets		Core Operating Profit*		Profit After Tax*
	19.12%		3.69%		21%
	Total Capital Adequacy Ratio		Net Interest Margin*		Increase in Total Deposits year-on-year
	42%	55%	20%
	Average CASA Ratio*	Retail Portfolio as a proportion of total		Growth in Retail Loans year-on-year
		Portfolio (including non-fund based
		outstanding)
				*During fiscal 2021; others at March 31, 2021
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	Integrated Report		Statutory Reports		Financial Statements

Icici Bank at a Glance

iMobile Pay

ICICI Bank launched 'iMobile Pay', a payment and banking services app that can be used by customers of any bank, in December 2020. Within five months of the launch, over 2.5 million customers of other banks have activated the app.

Coolest Workplace

ICICI Bank has been recognised as 'India's Coolest Workplace' by 'Business Today' magazine in the Banking, Financial Services and Insurance (BFSI) sector for the fifth year in a row. This ranking is based on the annual survey - 'India's Coolest Workplaces'**.

90% digital transactions

Over 90% of savings account transactions (financial and non-financial) are done through digital channels.***

Highest market share in FASTag

The Bank is the leader in electronic toll collection transactions done through FASTag with a 35.5% market share by value at the end of fiscal 2021.

Video KYC

ICICI Bank launched Video KYC to empower customers to complete the Know Your Customer (KYC) process through video interaction. The Bank is the first in the industry to offer this facility for opening salary accounts, availing a personal loan and a credit card.

EMI @ Internet

Banking

The 'EMI @ Internet Banking' service of ICICI Bank allows pre-approved customers to convert their high- value online purchases into instant EMIs. The Bank is the first in the industry to introduce this facility.

Over 580,000 individuals trained

ICICI Foundation for Inclusive Growth, the CSR arm of the ICICI Group, has trained over 580,000 less privileged individuals since its inception till March 31, 2021, helping them to earn a sustainable livelihood.

90% instant personal loans

ICICI Bank disbursed around 90% of all personal loans instantaneously in fiscal 2021.

UPI transactions increase by 2.5X

ICICI Bank's UPI payment gateway transactions increased 2.5 times in value and 1.4 times in volume, year-on-year in fiscal 2021.

75% credit cards issued digitally

The Bank issued close to 75% of all credit cards digitally to customers in fiscal 2021.

**Earlier known as 'Best Companies to Work For'

***Digital transactions include transactions on internet, iMobile, point-of-sale,touch-banking, phone banking and debit card use for e-commerce

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