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20th Annual R

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2014 - Sub

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Tab Banking Touch Banking iWishPockets

www.icicibank.com

ICICI BANK LIMITEDICICI Bank TowersBandra-Kurla ComplexMumbai 400 051

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20th Annual Report and Accounts 2013-2014

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Contents

Twenty-first Annual Report of ICICI Securities Primary Dealership Limited ............................................................ 2

Nineteenth Annual Report of ICICI Securities Limited ............................................................................................ 20

(a) Fourteenth Annual Report of ICICI Securities Holdings, Inc ............................................................................. 37

(b) Fourteenth Annual Report of ICICI Securities, Inc ............................................................................................ 46

Twenty-sixth Annual Report of ICICI Venture Funds Management Company Limited ......................................... 55

Nineteenth Annual Report of ICICI International Limited ....................................................................................... 71

Fourteenth Annual Report of ICICI Prudential Life Insurance Company Limited .................................................. 77

(a) Fifth Annual Report of ICICI Prudential Pension Funds Management Company Limited ............................. 192

Fourteenth Annual Report of ICICI Lombard General Insurance Company Limited ........................................... 202

Fifteenth Annual Report of ICICI Home Finance Company Limited ..................................................................... 233

Fourteenth Annual Report of ICICI Investment Management Company Limited ................................................ 248

Fifteenth Annual Report of ICICI Trusteeship Service Limited ............................................................................ 257

Eleventh Annual Report of ICICI Bank UK PLC ...................................................................................................... 264

Tenth Annual Report of ICICI Bank Canada ........................................................................................................... 290

Ninth Annual Report of ICICI Bank Eurasia LLC .................................................................................................... 309

Twenty-first Annual Report of ICICI Prudential Asset Management Company Limited ..................................... 330

Twenty-first Annual Report of ICICI Prudential Trust Limited ............................................................................... 342

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directors reportto the members,

ICICI SECURITIES PRIMARY DEALERSHIP LIMITED

Your Directors have pleasure in presenting the Twenty First Annual Report of ICICI Securities Primary Dealership Limited (the Company) along with the audited statement of accounts for the year ended March 31, 2014.

INDUSTRY OVERVIEW

Indias economic growth was modest in fiscal 2014 as both investment and consumption demand remained sluggish for a third consecutive year. As per the Central Statistical Organisations advance estimates, the gross domestic product (GDP) was estimated to grow by 4.9% year-on-year (YoY) in fiscal 2014 compared to 4.5%YoY growth in fiscal 2013. The deceleration in economic activity was broad based across the industrial and services sectors although the agriculture sector growth improved.

Timely onset of south west monsoon and normal rainfall in fiscal 2014 drove agricultural growth to 4.6% YoY in fiscal 2014 compared to 1.4% YoY in fiscal 2013. Industrial production growth remained muted at 0.2% YoY compared to 0.9% YoY a year ago as weakness persisted in the mining and manufacturing sectors. The services sector expanded at a similar pace in fiscal 2014 as the previous year, at 6.3% YoY. In line with moderating aggregate demand, inflation as measured by wholesale price index (WPI) eased in fiscal 2014. The average WPI inflation in April-February 2014 declined to 5.9% YoY as compared to 7.4% YoY during fiscal 2013. However, the focus has shifted away from WPI inflation towards consumer price index (CPI) inflation as the benchmark price gauge with Reserve Bank of India (RBI) adopting the recommendations laid out by the Urjit Patel Committee. CPI inflation has also slowed but remains elevated, averaging 9.6% YoY in April-February 2014 compared to 10.2% in fiscal 2013. Moderation was observed across sub-segments including food, fuel, housing and services. Core CPI inflation as measured by non-food & fuel inflation averaged 8.1% YoY in April-February 2014 as compared to 8.7% YoY in fiscal 2013.

RBI had adopted an accommodative monetary policy stance in fiscal 2013 and eased the benchmark repo rate again early in fiscal 2014 by 25 basis points to 7.25% as WPI inflation continued to decelerate. However, after a short easing cycle that brought the repo rate lower by a cumulative 125 basis points from the peak, a tighter monetary stance was adopted by the RBI in July 2013 in order to address the strains in the currency market. The expectations of US Federal Reserve exiting from its quantitative easing policy triggered by the comments from the Chairman of the US Federal Reserve in May 2013 sparked risk aversion in global financial markets. The Indian rupee (INR) was particularly adversely affected on account of Indias high fiscal and current account deficits that made the currency more vulnerable to global risk aversion. The INR moved from 54.28 to the US dollar in end-March 2013 to 68.80 to the US dollar in end-August 2013 before recovering. While the repo rate was kept unchanged at 7.25% in July 2013, the Marginal Standing Facility rate (MSF) that acts as a cap to the overnight rates was set at a spread of 300 basis points to the repo rate instead of 100 basis points. RBI modulated the liquidity conditions so as to push the overnight rates towards the MSF rate from the repo rate. Subsequently, stability in INR helped RBI normalise the monetary policy by returning the repo-MSF corridor to a spread of 100 basis points. However, the narrowing of spread has been partly achieved by lowering of the MSF rate and partly by an increase in the benchmark repo rate, now at 8%. The increase in repo rate is also intended to achieve a lower CPI inflation glide path over the next two years as recommended by the Urjit Patel Committee. RBI targets to bring CPI inflation to 8% YoY by January 2015 and to 6% YoY by January 2016. The CRR was kept unchanged at 4% in fiscal 2014.

On the external sector front, Indias current account deficit (CAD) was 2.3% of GDP in the first three quarters of fiscal 2014 vis--vis 4.8% of GDP in fiscal 2013. The sharp moderation has been particularly led by lower gold imports following the policy curbs even as exports have also improved. Lower CAD together with RBI efforts to sustain capital flows, for instance by way of attracting long term NRI flows, resulted into a higher balance of payment (BoP) surplus. BoP surplus was US dollar 8.40 billion during first three quarters of fiscal 2014 compared to a surplus of US dollar 0.96 billion during fiscal 2013. Reflecting these improvements, the INR ended fiscal 2014 at 59.91 to the US dollar.

The central government sought to contain the fiscal deficit to 4.6% of GDP in fiscal 2014 (as against 4.8% budgeted) from 4.9% of GDP recorded in fiscal 2013. As in fiscal 2013 the government achieved a lower deficit by substantially curtailing plan expenditure from the budgeted levels. The savings on account of plan expenditure largely compensated for the subsidies over run and shortfall in tax revenue. The central government borrowed ` 150.00 billion less than budgeted as the governments cash position remained comfortable.

Government bond yields were very volatile in fiscal 2014 as the central bank swiftly switched to tightening monetary policy from a more accommodative stance earlier in the year. A transition to a different monetary policy framework also contributed to volatility. The market overall was surprised by the change in the operating rate of RBI. The yield on the old benchmark 10 year increased by nearly 300 basis points from 7.20% in early June to around 9.2% later in the year. The new 10 year benchmark yields closed the fiscal 2014 at 8.80%. This business environment was very difficult and required careful monitoring of risks while at the same time ensuring that opportunities were capitalised upon.

FINANCIAL HIGHLIGHTS

The financial performance for FY2014 is summarised in the following table:

(` in million)

Fiscal 2013 Fiscal 2014

Gross income 8,302.2 9,035.6

Profit before tax 1,817.1 2,020.6

Provision for tax 600.3 702.3

Profit after tax 1,216.8 1,318.3

Appropriations

Profit after tax for the year ended March 31, 2014 was ` 1,318.3 million (previous year: ` 1.216.8 million). After taking into account the balance of ` 827.7 million (previous year: ` 717.7 million) brought forward from the previous year, the profit available for appropriation is ` 2,146.0 million (previous year: ` 1,934.5 million).

In accordance with the guidelines prescribed by Reserve Bank of India and other applicable guidelines, your Directors have recommended a final dividend of 26% for the year and have appropriated the disposable profit as follows:

(` in million)

Fiscal 2013 Fiscal 2014

To General Reserve 121.6 131.8

To Special Reserve 243.3 263.7