ICICI Group: Strategy and Performance

August 2009

2

Certain statements in these slides are forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in ICICI Bank's filings with the Securities and Exchange Commission.

All financial and other information in these slides, other than financial and other information for specific subsidiaries where specifically mentioned, is on an unconsolidated basis for ICICI Bank Limited only unless specifically stated to be on a consolidated basis for ICICI Bank Limited and its subsidiaries. Please also refer to the statement of unconsolidated, consolidated and segmental results required by Indian regulations that has, along with these slides, been filed with the stock exchanges in India where ICICI Bank’s equity shares are listed and with the New York Stock Exchange and the US Securities Exchange Commission, and is available on our website www.icicibank.com.

3

Agenda

Market developments

Financial performance

Strategy & execution

4

Key economic indicators

Industrial production grew 2.7% in May 2009, registering growth for second consecutive month

Six infrastructure industries grew 6.5% in June 2009 raising prospects of good industrial production growth

Strong capacity utilisation in key sectors like steel, aluminium and cement

Automobile sales have recovered across all segments

Strong signs of improvement; impact of monsoon remains uncertain

5

Liquidity and interest ratesHigh systemic liquidity: Rs. 1.30 trillion lent to RBI on a daily basis

10 year G-sec yields on the rise on concerns over government borrowing programme

RBI announced plans for management of the programme in non disruptive way through front-loadingNearly 2/3rd to be raised in H1-2009 to avoid crowding out in second halfDisinvestment plans could further alleviate pressure

RBI committed to maintaining growth-supportive stance till demand revival

6

Credit and deposit growthModeration in non-food credit growth compared to FY2009

Deposit growth remains healthy

RBI’s projection for credit and deposit growth in FY2010 at 20% and 19% respectively

Credit growth expected to pick up in the second half of FY2010

Mortgages, vehicle loans, project finance and commercial banking expected to be key drivers

7

Agenda

Market developments

Financial performance

Strategy & execution

8

Our franchise

Life Insurance(JV with Prudential)General Insurance(JV with Lombard)Asset Management(JV with Prudential)

Private Equity(Wholly owned)

Investment Banking & Broking(Wholly owned)

Second largest bank in IndiaICICI Bank

Strong diversified financial services franchise in India

74%

74%

51%

100%

100%

9

Strategy for FY2010

Position balance sheet for next phase of growth

Cost• Keep stringent control on

operating expenses

Credit• Focus on opportunities in

mortgages, project finance & commercial banking

• Further reduce unsecured retail portfolio

CASA• Increase the proportion of

low cost CASA deposits• Reduce the proportion of

wholesale deposits

Capital• Maintain high capital

adequacy

10

Key enablersEnhanced branch network as focal point for customer relationshipBranches responsible for customer acquisition, sales and class servicing Select "mega branches“ identified for commercial banking opportunities; headed by senior employees

Distribution architecture

In-housing of collections for specific products and bucketsDedicated pre-delinquency management cellChanges in field agency management and incentives

Collection architecture

Retraining and redeployment of staff for new responsibilities in branches

Human resources

11

-50

100150200250300350400450500

2003 2004 2005 2006 2007 2008 2009 Q1-2010

Focus on CASA deposits

1,419

28.7%

Mar 2009

1,4561,262755614562469446Branches

30.4%26.1%21.8%22.7%24.3%23.0%15.5%CASA ratio

June 2009

Mar 2008

Mar 2007

Mar 2006

Mar 2005

Mar 2004

Mar 2003

CAGR 49%

Implementation underway for 580 new branches; target to open by March 2010

Sav

ings

dep

osi

ts (R

s. b

n)

12

0%

5%

10%

15%

20%

Tier-1 Tier-2

High capitalisation levelsC

apita

l ad

equa

cy r

atio

ICICI Bank

Other top 9 Indian banks

As per the latest available financials(June 2009)

17%

15%15% 15% 15% 14%

14% 14% 13%12%

13

2.2%

1.8%

1.6%

2.3%

2.5%

2.4%

2.3%

1.5%

1.7%

1.9%

2.1%

2.3%

2.5%

2.7%

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 Q1-2010

Stringent cost control

68.35

FY2009

14.94

Q1-2010

79.7265.0247.2533.7125.98Operating expenses1

FY2008FY2007FY2006FY2005FY2004Rs. bn

Co

st/a

vera

ge a

sset

s

1. Including DMA

14

Credit strategyICICI Bank moderated credit growth from end of FY2008 anticipating risks in the environment

Personal loan disbursements and new credit card issuances reduced substantially from FY2008 levels

Moderation in system non-food credit growth from 22.3% in FY2008 to 17.5% in FY2009 and 15.8% at mid-July 2009

ICICI Bank using the opportunity to rebalance its funding profile

Credit growth expected to pick up in the second half of FY2010

ICICI Bank to focus on mortgages, project finance and commercial banking

15

International business strategyStrong term deposit mobilisation capability in UK and Canada subsidiaries

To be selectively deployed primarily in India-linked assets

Asset repayments in international branches being used to repay maturing liabilities

Limited growth in overall international balance sheet

16

Strategy for insuranceLife insurance market expected to see revival in growth in second half of FY2010 (first half would be impacted by high base effect)

ICICI Life: focus on consolidating position as largest private sector life insurer, while maintaining new business profit margins and reducing expense ratio

General insurance sector continues to witness impact of detariffing

ICICI General: focus on maintaining market share and leadership, while maintaining underwriting profitability and reducing expense ratio

17

Agenda

Market developments

Financial performance

Strategy & execution

18

Overview: Q1-2010

31% increase in profit before tax from Rs. 9.22 billion in Q1-2009 to Rs. 12.05 billion in Q1-2010

21% increase in profit after tax from Rs. 7.28 billion in Q1-2009 to Rs. 8.78 billion in Q1-2010

68% increase in consolidated profit after tax1 from Rs. 6.17 billion in Q1-2009 to Rs. 10.35 billion in Q1-2010

1. Unaudited

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Overview: Q1-2010Net interest income for Q1-2010 at Rs. 19.85 billion compared to Rs. 20.90 billion for Q1-2009

Decrease in NII mainly due to decrease in advances by 11.6%Net interest margin maintained at the same level as Q1-2009 at 2.4%Net interest margin lower compared to 2.6% in Q4-2009 due to full impact of low margin agricultural loans and maintenance of higher level of liquidity

Fee income of Rs. 13.19 billion in Q1-2010; marginal decline from Q4-2009 level

Decrease in fee income from Rs. 19.58 billion in Q1-2009 due to slowdown in corporate activity and distribution of retail savings and investment products

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Overview: Q1-2010

Robust treasury income of Rs. 7.14 billion in Q1-2010 compared to a loss of Rs. 5.94 billion in Q1-2009

Continued reduction in operating expenses20% y-o-y and 7% q-o-q decrease in operating & DMA expensesCost/average asset ratio for Q1-2010 at 1.6% compared to 1.8% for Q4-2009 and 1.9% for Q1-2009

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Balance sheet highlightsCASA ratio of 30.4% at June 30, 2009 compared to 27.6% at June 30, 2008 and 28.7% at March 31, 2009

Increase of Rs. 34.23 bn in savings deposits during the quarter

Total capital adequacy of 17.4% and Tier-1 capital adequacy of 13.1% as per RBI’s Basel II framework

Advances declined by 9% in Q1-2010 reflecting moderation in systemic credit offtake and the Bank’s conscious strategy of risk containment

Net NPA ratio of 2.19% at June 30, 2009 compared to 1.96% at March 31, 2009

22

Thank you

23

Annexure

24

Unconsolidated financials

25

Profit & loss statement

-7.14(5.94)4.43- Treasury income

(93.1)%0.040.463.01- Others

(58.6)%0.531.283.35- Dividend income

17.14

0.52

2.28

16.34

36.28

19.58

15.38

20.90

Q1-2009

25.29

0.52

0.27

14.67

40.75

13.19

20.90

19.85

Q1-2010

12.3%159.70Total income

47.5%

-

(88.2)%

(10.2)%

(32.6)%

35.9%

(5.0)%

Y-o-Ygrowth

5.29DMA expenses

89.25

2.10

63.06

65.24

76.03

83.67

FY2009

Operating profit

Lease depreciation

Operating expenses

- Fee income

Non-interest income

NII

(Rs. in billion)

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Profit & loss statement

7.28

1.94

9.22

7.92

17.14

Q1-2009

8.78

3.27

12.05

13.24

25.29

Q1-2010

47.5%89.25Operating profit

67.2%38.08Provisions

37.58

13.59

51.17

FY2009

20.6%

68.6%

30.7%

Y-o-Ygrowth

Profit before tax

Profit after tax

Tax

(Rs. in billion)

27

Balance sheet: Assets

(2.1)%704.86720.07633.87- SLR investments

38.2%120.9787.54120.97- Equity investment in

subsidiaries

3,941.56

264.54

2,241.46

1,080.05

355.51

June 30, 2008

5.8%1,142.4711,030.58Investments

3,674.19

245.42

1,981.02

305.28

June 30, 2009

(6.8)%

(7.2)%

(11.6)%

(14.1)%

Y-o-Y growth

3,793.01

279.66

2,183.11

299.66

Mar 31, 2009

Total assets

Fixed & other assets

Advances

Cash & bank balances

(Rs. in billion)

1. Investment in security receipts of asset reconstruction companies at June 30, 2009 was Rs. 35.72 bn.

Credit derivative exposure (including off balance sheet exposure) of Rs. 54.05 bn at June 30, 2009 (underlying comprises Indian corporatecredits).

Including impact of exchange rate movement

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SME4%

Rural8%

Domestic corporate

13%

Overseas branches

26%Retail

business group49%

Composition of loan book: June 30, 2009

1. STPL: Small ticket personal loans2. Vehicle loans includes auto loans 12%, commercial

business 14% and two wheelers 1%3. Retail business group includes builder loans and dealer

funding of Rs. 30.55 bn

Total loan book: Rs. 1,981 bn Total retail loan book: Rs. 960 bn

1

3

Credit cards

7%

Other secured

2%

STPL0.3%

Personal loans

8%

Home55.7%

Vehicle loans27%

2

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Equity investment in subsidiaries

120.97

0.14

0.61

0.05

0.87

1.58

11.12

3.00

33.50

23.25

10.96

35.90

Mar 31, 2009

33.50 13.53 ICICI Bank Canada

23.25 18.55 ICICI Bank UK

0.05 0.05 ICICI Venture Funds Mgmt Co.

10.96 7.17 ICICI Lombard General Insurance

87.54

0.14

0.61

0.87

1.64

10.47

3.00

31.52

June 30, 2008

11.12 ICICI Home Finance

3.00 ICICI Bank Eurasia LLC

1.58 ICICI Securities Primary Dealership

0.14 Others

120.97

0.61

0.87

35.90

June 30, 2009

Total

ICICI AMC

ICICI Securities Limited

ICICI Prudential Life Insurance

(Rs. in billion)

30

Balance sheet: Liabilities

(3.1)%908.81938.23928.05Borrowings

2.3%444.59434.65410.36- Savings

(8.0)%195.18212.20216.32- Current

3,674.19

157.59

2,102.36

3.50

490.80

11.13

501.93

June 30, 2009

(6.8)%

(13.1)%

(10.3)%

-

6.0%

-

5.9%

Y-o-Y growth

3,793.01

182.65

2,183.48

3.50

484.20

11.13

495.33

Mar 31, 2009

3,941.56

181.28

2,344.61

3.50

462.81

11.13

473.94

June 30, 2008

Total liabilities

Other liabilities

Deposits

Preference capital

- Reserves

- Equity capital

Net worth

(Rs. in billion)

Credit/deposit ratio of 73% on the domestic balance sheet at June 30, 2009

Figures include impact of exchange rate movement

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Composition of borrowings

521.92561.14551.84 Overseas

137.54174.98138.55 - Other borrowings

938.23

546.59

14.55

202.11

377.09

June 30, 2008

249.35237.66 - Capital instruments

908.81

505.71

16.21

386.89

June 30, 2009

928.05

534.68

17.16

376.21

Mar 31, 2009

Total borrowings

- Other borrowings

- Capital instruments

Domestic

(Rs. in billion)

Capital instruments contribute 64% of domestic borrowings

Figures include impact of exchange rate movement

32

Capital adequacy (Basel II)

3,274.403,564.63Total RWA

2,556.082,758.15- On b/s

718.32806.48- Off b/s

140.77

428.42

569.19

131.59

421.97

553.55

3.7%

11.8%

15.5%

Mar 31, 2009

4.3%

13.1%

17.4%

June 30, 2009

- Tier II

- Tier I

Total Capital

Rs. billion except %

33

Key ratios

37.152.143.4Cost to income (incl. DMA expenses)

1.61.91.8Cost to average assets (incl. DMA expenses)

30.4%27.6%28.7%CASA ratio

32.854.741.4Fee to income

2.4

445

33.8

7.7

FY2009

451426Book value (Rs.)

2.4

26.2

6.1

Q1-2009

2.4

31.6

7.0

Q1-2010

Net interest margin2

Weighted average EPS (Rs.)2

Return on average networth1,2

(Percent)

1. Based on quarterly average net worth2. Annualised for Q1-2009 and Q1-2010

34

14.36Outstanding general provision on standard assets

1.96%

46.19

53.10

99.29

Mar 31, 2009

2.19%

46.67

50.28

96.95

June 30, 2009

1.74%

41.02

51.80

92.82

June 30, 2008

Net NPA ratio

Net NPAs

Less: Cumulative provisions

Gross NPAs

Asset quality and provisioning(Rs. in billion)

Gross retail NPLs at Rs. 67.27 bn and net retail NPLs at Rs. 31.25 bn at June 30, 2009

59% of net retail NPLs are from unsecured products

Additions of about Rs. 14.50 bn to opening net restructured loans

Reductions of Rs. 32.38 bn from opening net restructured loans, primarily due to upgradation on satisfactory performance

Net restructured loans of Rs. 41.46 bn at June 30, 2009

1. Gross NPAs and cumulative provisions include technical write-offs of Rs. 1.26 bn at June 30, 2009

35

Overseas subsidiaries

36

India l inked investments

5%

Other assets & investments

6% Cash & liquid securit ies

16%

Bonds/notes of f inancial inst itut ions

25%

Loans & advances

46%

Asset backed securit ies

2%

ICICI Bank UK asset profile1

1. Includes cash & advances to banks and certificates of deposit

2. Includes US$ 158 mn of India-linked credit derivatives3. Includes securities reclassified to loans & advances in

FY20094. Does not include US$ 162.6 mn of ABS reclassified as

loans & receivable in FY2009

Total assets:USD 8.3 billion

2

3

4

Net profit of USD 4.9 million in Q1-2010

Capital adequacy ratio at 16.0%

Net MTM write-back of USD 48.5 million (post-tax) in reserves in Q1-2010

37

ICICI Bank UK liability profile

Total liabilities:USD 8.3 billion

Proportion of retail term deposits in total deposits increased from 23% at June 30, 2008 to 63% at June 30, 2009

Term deposi ts42%

Syndicated loans &

interbank borrowings

10%

Networth6%

Other l iab i l i ties

4%

Long- term Debt14%

Demand deposi ts

24%

38

Ind ia l inked investments

3%

Loans to customers

60%

Cash & l iquid securi ties

17%

Federal ly insured

mortg age13%

Other assets & investments

5%Asset backed securi ties

2%

`

ICICI Bank Canada

1. Includes cash & advances to banks, government securities and banker’s acceptances/depository notes

2. Includes CAD 144 mn of India-linked credit derivatives

Total assets:CAD 6.3 billion

1

2

Net profit of CAD 8.9 million in Q1-2010

Capital adequacy ratio at 22.0%

39

ICICI Bank Canada liability profile

Total liabilities:CAD 6.3 billion

ICICI Bank Canada balance sheet funded largely out of retail term deposits

Networth15%

Demand deposits

9%

Borrowings1%

Other liabilit ies

3% Term deposits

72%

40

Corporate bonds

8%

Retail loans17%

Other assets2%

Cash & liquid securit ies

28%

Loans to corporates &

banks45%

ICICI Bank Eurasia

Total borrowings of USD 354 million at June 30, 2009

Capital adequacy of 18.3% at June 30, 2009

Financial breakeven during the period

1. Includes cash, balances with central bank, nostrobalances, govt bonds & placements with banks

Total assets:USD 441 million

1

41

Key non-banking subsidiaries

42

ICICI Life

11.6%14.5%Expense ratio

430.35269.67Assets Under Management

19.0%19.1%NBP margin

1.182.40New Business Profit (NBP)

20.9215.51Renewal premium

6.2212.55APE

(0.36)(3.22)Statutory Loss1

28.4430.88Total premium

Q1-2010Q1-2009(Rs. in billion)

Continued market leadership in private sector2

1. Profit before tax of Rs. (1.00) bn in Q1-2010 and Rs. (3.22) bn in Q1-2009

2. For the period April - June 2009 on new business retail weighted received premium basis

43

ICICI General

Continued market leadership in private sector1

1. For the period April – June 2009

0.530.03PBT

0.380.01PAT

8.7810.77Gross premium

Q1-2010Q1-2009

(Rs. in billion)

44

Other subsidiaries(Rs. billion)

0.270.21ICICI Home Finance Company

0.28

1.29

0.13

0.14

Q1-2009

0.19ICICI Prudential Asset Management Company

0.14ICICI Securities Ltd.

0.16

0.67

Q1-2010Profit after tax

ICICI Venture

ICICI Securities PD

Consolidated profit after tax increased by 68.0% from Rs. 6.17 billion in Q1-2009 to Rs. 10.35 billion in Q1-2010