ICICI Group: Strategy and

Performance

September 2007
 Contents

Opportunities & Strategy

Financial
Financial Performance
Performance

Key
Key Subsidiaries
Subsidiaries

2
 India: on a high growth trajectory
10.0 9.4
9.0
9.0
8.0 7.5
7.0
GDP growth(%)

6.0
CAGR during
5.0 1990s: 5.2%
4.0
3.0
2.0
1.0
0.0
2005 2006 2007

Services sector Industrial sector

Globalisation
growth momentum
Favourable Knowledge capital Rural potential
demographics

3
 Consumption and Investment
zzHouseholds
Householdsin
inRs.
Rs.90,000-Rs.
90,000-Rs.1,000,000
1,000,000
income
incomebracket
bracketexpected
expectedto toincrease
increasefrom
from
53.0
53.0mn
mn(28%
(28%of oftotal)
total)in
in2002
2002toto108.0
108.0mn mn
(46%)
(46%)in
in2010
1
20101
Consumption
zzShare
Shareof
ofpopulation
populationin indeprived
deprivedclass
classtotodrop
drop
by
bymore
morethan
thanhalf
halfby
by2025
2025with
withmore
morethan
than
291
291mn
mnpeople
peopleexpected
expectedto torise
riseout
outof
of
poverty
povertyand
andenter
entermiddle
middleclass
class

zzStrong
Strongcorporate
corporateperformance
performancewith
withhigh
high
cash
cashaccruals;
accruals;large
largeinvestment
investmentpipeline
pipelinein
in
both
bothmanufacturing
manufacturingandandinfrastructure
infrastructure
Investment zzIncreasing
Increasingvolume
volumeofofcross
crossborder
borderM&As:
M&As:
Volume
Volumeof ofoutbound
outboundM&AM&AatatUS$
US$21.2
21.2bn
bninin
CY2006 (2)
CY2006(2)

1. National Council For Applied Economic Research

2. Source: Bloomberg, Including Tata Corus deal
announced in December 2006
4
 Multiple opportunities in financial services

Favourable Knowledge
demographics capital

Rising disposable
income
Investment Personal Consumption
Credit
Manufacturing Housing
Savings
Infrastructure Investment banking Transportation
Insurance
International Personal credit
Asset management
expansion

5
 The ICICI Group: Our strategy
Enhance share of retail
Domestic Retail deposits and sustain leadership
Banking position in credit franchise
Global Corporate Leverage corporate

Shareholder value
relationships, structuring
and Investment expertise, balance sheet and
Banking global syndication capability

International Retail Leverage NRI opportunity and

Banking technology capabilities

Rural Banking Invest for future growth

Insurance & Asset Enhance and leverage market

Management leadership position

…multi-specialist financial
services group
6
 Our retail banking platform
zzLeadership
Leadershipposition
positionwith
withdemonstrated
demonstrated
pricing
pricingpower
power
Credit zzFull
Fullrange
rangeof
ofproducts
productsdistributed
distributedthrough
throughin-
in-
house
housenetwork
networkand
andexternal
externalagent
agentforce
force
zzCentralized
Centralizedcredit
credit&&operations
operations
zzSuperior
Superiordeposit
depositgathering
gatheringfranchise:
franchise:highest
highest
savings
savingsaccount
accountdeposit
depositper
perbranch
branchin inthe
the
Deposits industry
industry
zzLow
Lowcost,
cost,scalable
scalabletechnology
technologyarchitecture:
architecture:
only
only10%
10%of oftransactions
transactionsoccur
occuratatbranches
branches
zzDiversified
Diversifiedfee
feeincome
incomestreams:
streams:loans,
loans,cards,
cards,
transaction
transactionbanking
banking&&distribution
distribution
Fee income zzFocus
Focuson
oncross
crosssell
sellof
ofinsurance
insuranceand
andasset
asset
management
managementproducts
products

7
 Innovative SME business model

zzInnovative
Innovativedeposit
depositproduct
productfor
forSMEs:
SMEs:
Deposits and Roaming
Roamingcurrent
currentaccount
account
transaction zzComprehensive
Comprehensivenon-fund
non-fundbased
basedproduct
product
banking suite:
suite:trade,
trade,cash
cashmanagement,
management,foreign
foreign
exchange
exchangeand andrisk
riskmanagement
management

zzMarket
MarketSegmentation
Segmentationbased
basedon
onrisk
riskprofile:
profile:
industry
industryclusters,
clusters,corporate
corporatechannel
channelpartners
partners
and
andother
otherSMEs
SMEs
Focused zzLending
lending Lendingpredominantly
predominantlyfocused
focusedon
on
zzPre-selected
Pre-selectedclusters
clusters
zzCorporate
Corporatelinkages
linkages
zzParameterisation
Parameterisation

8
 Corporate & investment banking

Origination Structuring Syndication

zzLeveraging
Leveragingdomestic
domestic zzStructuring
Structuringskills
skills zzIndia
Indiaand
andglobal
global
corporate
corporaterelationships
relationships zzBalance
Balancesheet
sheet distribution
distribution
zzProject
Projectappraisal
appraisal support
support–– capability
capability
capabilities
capabilities domestic
domesticand
and zzFocus
Focusononrisk
risk
zzM&A
M&Aadvisory
advisory international
international diversification
diversificationand
and
return
returnoptimization
optimization

Combined with efficient transaction banking and treasury

products

Ranked #1 in India syndicated loans

9
 International banking
zzFocus
Focuson
onfee
feeand
andliability
liabilitygeneration
generation
zz India
Indialinked
linkedproducts
productsfor
forNRIs;
NRIs;distribution
distributionof
of
third
thirdparty
partyinvestment
investmentproducts
products
International zz Platform
Platformtotocapture
capturelarge
largeremittance
remittanceflows
flows
retail banking into
intoIndia
Indiaand
andin
inother
othercorridors;
corridors;Market
Marketshare
share
of
of28%
28%ininremittances
remittancesinto
intoIndia
India
zz Technology-driven
Technology-drivendirect
directbanking
bankingplatform
platformin
in
UK
UKand
andCanada
Canada
zzPresence
Presencein
in18
18countries
countriesoutside
outsideIndia
India
zz North
NorthAmerica,
America,UK,
UK,Europe,
Europe,Russia,
Russia,Middle-
Middle-
International east,
east,South
SouthAfrica,
Africa,South-East
South-East&&North
NorthAsia
Asia
franchise zzInternational
Internationalassets
assetsaccount
accountfor
for20%
20%of
of
snapshot consolidated
consolidatedbanking
bankingassets
assets
zzProfitability
Profitabilitywith
withscale:
scale:ICICI
ICICIBank
BankUK
UKprofit
profit
after
aftertax
taxof
ofUS$
US$18.7
18.7mn
mnin inQ1-2008
Q1-2008
Largest international balance
sheet among Indian banks
10
 Rural banking: Investing for future growth
zzStrategy
Strategyto
tocomprehensively
comprehensivelycover
coveran
an
identified
identifiedrural
ruralgeography
geographywith
withbranches,
branches,
Comprehensive partnerships
partnerships&&technology
technologybased
basedchannels
channels
channel strategy zzBranches
Branchesat atmajor
majoragricultural
agriculturalmarkets
markets
zzFranchisees,
Franchisees,internet
internetkiosks,
kiosks,micro
microfinance
finance
institutions
institutions&&corporate
corporatepartners
partners

zzMulti-product
Multi-productsuite
suitefor
forcatering
cateringto
tovarious
various
customer
customersegments:
segments:farmer
farmerfinancing,
financing,
Comprehensive agri-businesses,
agri-businesses,commodity-based
commodity-based
product strategy financing
financingand
andmicro-credit
micro-credit
zzSavings
Savingsand
andinvestment
investmentproducts
products
zzInsurance
Insurance

11
 Contents

Opportunities
Opportunities && Strategy
Strategy

Financial Performance

Key
Key Subsidiaries
Subsidiaries

12
 Profit & loss statement (Rs. in billion)
FY 2007 Q1-2007 Q1-2008 Q-o-Q
Growth
NII 66.36 14.75 17.14 16.2%
Non-interest income 59.14 12.60 17.55 39.4%

- Fee income1 50.12 10.55 14.28 35.3%

- Others (including 9.02 2.05 3.27 59.5%
dividend from subsidiaries)
Core operating income 125.50 27.35 34.69 26.8%
Operating expenses 49.79 10.80 14.79 37.0%
DMA2 expenses 15.24 3.91 3.83 (2.2%)
Lease depreciation 1.88 0.50 0.43 (14.0%)
Core operating profit 58.59 12.14 15.64 28.8%
1. Includes merchant forex income and margin on customer derivative transactions
2. Represents commissions paid to direct marketing agents (DMAs) for origination
of retail loans. These commissions are expensed upfront

13
 Profit & loss statement (Rs. in billion)
FY 2007 Q1-2007 Q1-2008 Q-o-Q
Growth
Core operating profit 58.59 12.14 15.64 28.8%
Treasury income 10.14 0.18 1.95 -
Less: Premium amort on 9.99 2.67 2.35 (11.7%)
SLR
Operating profit 58.74 9.65 15.24 57.9%
Provisions & w-off 22.26 2.16 5.521 155.5%
Profit before tax 36.48 7.49 9.72 29.8%
Tax 5.38 1.29 1.97 52.7%
Profit after tax 31.10 6.20 7.75 25.0%
1. Includes impact of higher proportion of non-collateralised loans in the retail
portfolio and seasoning of the retail portfolio

14
 Key balance sheet items (Rs. in billion)

Mar 31, June 30, June 30, Y-o-Y

2007 2006 2007 growth
Advances 1,958.66 1,471.84 1,982.771 34.7%
Total assets 3,446.58 2,662.65 3,569.32 34.1%
Net worth 243.13 227.70 246.86 8.4%
Deposits 2,305.10 1,830.06 2,307.88 26.1%

1. Net of sell-down of about Rs. 38.50 bn in Q1-2008

15
 Key ratios (Percent)
FY2007 Q1-2007 Q1-2008
Return on average networth4 13.4 11.1 13.01
Weighted avg EPS (Rs.) 4 34.8 27.8 34.6

Book value (Rs.) 269.8 254.4 272.9

NIM4 2.6 2.5 2.32
Cost3/ income 40.2 44.3 43.7
Fee to income 40.5 43.3 42.2
Capital adequacy 11.69% 12.46% 11.03%
- Tier I 7.42% 8.60% 7.08%5
1. RoE including profit of banking subsidiaries and excluding investment in
insurance – 15.9%
2. Impact of higher cash reserve ratio (CRR) and non-payment of interest on CRR
resulted in NIM being lower by 20 bps as compared to Q1-2007 and Q4-2007
3. Excludes direct marketing agent (DMA) expenses
4. Annualized for Q1-2007 and Q1-2008
5. Does not include capital raised through public issue in India and American
Depositary Share offering, which would be reflected in the quarter ending
September 30, 2007

16
 Asset quality and provisioning
(Rs. in billion)
Mar 31, 2007 June 30, 2007

Gross NPAs 48.50 60.43

Less: Cumulative w/offs &
provisions 28.31 33.01
Net NPAs 20.19 27.42
Net NPA ratio 1.0% 1.3%
z Gross retail NPLs as on June 30, 2007: Rs. 38.67 bn (of which 54% were non-
collateralised)
z Net retail NPLs as on June 30, 2007: Rs. 19.43 bn (of which 46% were non-
collateralised)
z Net restructured loans: Rs. 49.26 bn (Mar 31, 2007: Rs. 48.83 bn)

Increase in NPAs reflects portfolio ageing, lower growth

and changing portfolio mix

17
 Contents

Opportunities
Opportunities && Strategy
Strategy

Financial
Financial Performance
Performance

Key Subsidiaries

18
 India life insurance opportunity
Life in su ran ce pen etration & per capita (2006)
6000 1 4 .0 %
13.1%
Insurance pe r capita ( U SD )

5000 1 2 .0 %

Insurance pe ne t rat ion

5140
8.3% 1 0 .0 %
4000 7.9%
8 .0 %
3000 2829
6 .0 %
4.0% 4.1%
2000 3.2%
1480 4 .0 %
1790 1.7%
1000 1.3%
2 .0 %
189
73 34 33
0 0 .0 %
UK Japan US K ore a Malay sia B razil China India

Source : Swiss Re

Only a third of the target population of 400 mn is insured

19
 Evolution of industry since liberalisation

FY 00 FY 06 FY 07

Number of players 1 15 16

NB premium (Rs bn) 64.00 CAGR of 33% 110% 754.00

359.00
CAGR of 26% 60%
Total premium (Rs bn) 270.00 1,059.00 1,696.00

Penetration (as a
1.2% 3.0% 4.1%
% of GDP)

Insurance premium ~963 ~1,510

~280
per capita (Rs )

Source: IRDA, Swiss Re

20
 Industry growth
Y-O-Y Growth 16% 17% 34% 92% 40%
450. 00
400. 00
350. 00
300. 00
250. 00
Rs bn

200. 00
150. 00
100. 00
50. 00
0. 00
FY 03 FY 04 FY 05 FY 06 FY 07 Y TD Ju ly
07
LIC Private
Source : IRDA, Weighted New Business Premiums for individual business

21
 ICICI Prudential Life Insurance
Retail2 Oth ers, YTD July 07
S BI Life, 14. 0%
2. 9% Market share
HDFC
S tan dard,
3. 9%
Bajaj Allian z , Group
8. 0%
SB I Lif e ,
LIC , 61. 0% ICICI 3 .2 % Othe rs, 6 .0 %
Prude nt ial,
IC IC I 6 .6 %
Pru den tial,
10. 2%

Total mkt : Rs 117.91 bn (USD 2915 mn)

LIC, 8 4 .2 %
1. Source : IRDA Total mkt : Rs 32.25 bn (USD 797 mn)
2. Weighted New Business Premiums for individual business

22
 Rapid distribution ramp-up
Mar 05 Mar 06 Aug 07

Locations 74 132 535

Branches 107 177 717

Advisors (‘000) 57 72 226

Non agency share 30% 37% 37%

We continue to create a nationwide agency network, complemented by

increased focus on non-agency distribution

23
 Growth in new business : APE1

50. 00 4 3 .8 1
45. 00
40. 00
35. 00
30. 00
4 year CAGR - 104%
2 1 .6 3
Rs bn

25. 00
20. 00 1 2 .5 6
15. 00 8 .3 4
7 .0 6
10. 00 2 .5 4
5. 00
0. 00
FY 03 FY 04 FY 05 FY 06 FY 07 Q1-2008

1. Annualized Premium Equivalent

24
 Value creation: NBP1

10. 00 35. 0%
8. 81
9. 00 28.2% 29.3%
30. 0%
8. 00 25.1% 24.4%
7. 00 25. 0%
20.1% 19.7%
6. 00 5. 28

Margin
20. 0%
Rs bn

5. 00
4. 00 15. 0%
3. 12
3. 00 2. 04 10. 0%
1. 65
2. 00
0. 71 5. 0%
1. 00
0. 00 0. 0%
FY 03 FY 04 FY 05 FY 06 FY 07 Q1-2008
N BP N BP %

1. New Business Profit (Unaudited)

25
 Robust growth in assets held
184.75
200.00
158.18
180.00
160.00
140.00
111.9 4
120.00 9 5 .0 9
88.21
Rs b n

100.00
80.00
4 5 .6 9
60.00 38.31
16.63 7 2 .8 1
40.00 6.66 10 .4 8 6 3 .10
3 .3 5 4 2 .5 2
20.00 0 .5 6 2 7 .8 3
6 .10 13 .2 8
0.00
FY 03 FY 04 FY 05 FY 06 FY 07 Q1- 2008
Debt Equ ity

z Crossed the Rs 200.00 bn milestone in August 07

z Linked funds constitute 85% of total assets held

26
 Expense ratio trend
80% 74%
70%
60% 54%
50%
40%
26%
30%
17% 14% 14%
20%
10%
0%
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07

Expense ratio: Operating Expenses / (Total Premium less 90% of Single Premium &
50% of Limited Pay products)

Flat expense ratio despite aggressive expansion

27
 Summary of key achievements
Sustained private market leadership: 6 years in a row

Over Rs 200.00 bn (USD 4.9 bn) of assets held

More than 5 million policies sold

Total premiums of Rs 18.01 bn (USD 441.9 mn) in Q1-2008

NBP of Rs 1.65 bn (USD 40.4 mn) in Q1 FY 08

Fitch rating of ‘AAA (Ind)’

Ranked most respected private life insurer by Business World

28
 ICICI Lombard General Insurance
Market zzMarket
Marketleadership
leadershipin
inprivate
privatesector
sectorwith
withmarket
market
leadership share
shareof
of31.0%
1
31.0%1

zz9%
9%growth
growthin
ingross
grosswritten
writtenpremium
premium(GWP)
(GWP)to
toRs.
Rs.
8.87
8.87bn
bnin
inQ1-2008
Q1-2008
zzGWP
GWPincreased
increasedbyby20%
20%in inthe
theretail
retailsegment
segmentbut
but
Highlights
was
wasflat
flatin
incorporate
corporatesegment
segmentdue duetotoimpact
impactof
of
de-tariffing
de-tariffing
zzNon-corporate
Non-corporatebusiness
businessat
at51%
51%of ofGWP
GWP

Financial
zzProfit
Profitafter
aftertax
taxof
ofRs.
Rs.453.7
453.7mn
mnin
inQ1-2008
Q1-2008
performance

1. For YTD July31, 2007

29
 Leader in the private sector
Product Market Share Rank in
private sector
Fire 11.7% 1
Engineering 14.1% 1
Marine 11.0% 1
Motor 9.8% 1
Health & accident 19.5% 1
Liabilities 19.6% 1
Aviation 9.7% 1
Others 4.1% 2
Total 11.9% 1

Source: IRDA (Q1-2008)

30
 ICICI Prudential Asset Management
zzAmong
Amongthe
thetop
toptwo
twomutual
mutualfunds
fundsin
inIndia
India
Market
zzFunds
Fundsunder
undermanagement
management(FUM)
(FUM)ofofRs.
Rs.506.59
506.59bn
bn
leadership
zzMarket
Marketshare
shareof
of10.8%
1
10.8%1

zzEquity
Equityassets
assetsincreased
increasedby
by16.2%
16.2%in
inthe
thequarter
quarter
Highlights ended
endedJune
June30,
30,2007
2007
zzEquity
Equityassets
assetsconstitute
constitute34.4%
34.4%of
ofoverall
overallFUM
FUM

Financial zzProfit
Profitafter
aftertax
taxof
ofRs.
Rs.276.0
276.0mn
mnin
inQ1-2008
Q1-2008
performance compared
comparedto
toRs.
Rs.160.4
160.4mn
mnin
inQ1-2007
Q1-2007

1. As on August 31, 2007

31
 ICICI Prudential AMC - Performance
FUM (Rs Bn) PBT (Rs Mn)
600 800
736
700
%
500
9% 67
5 600 =
R= R
400 G AG
CA 500 C 474
413
300 400

300 264
200
200
100
100

0 0
Mar 05 Mar 06 Mar 07 Au g 07 FY 05 FY 06 FY 07 Q1-2008

Significant growth in FUM and profits year on year

32
32
 Demonstrating value creation
ICICI Bank ICICI Bank
94.1% ICICI Financial
74% Services
ICICI Life
74% ICICI Life
74%
ICICI General
74% ICICI General
51% ICICI AMC 51% ICICI AMC

z New subsidiary to raise capital for meeting future capital

requirements of insurance subsidiaries
z Received definitive offers for investment of Rs. 26.50 bn for
5.9% stake, valuing the company at Rs. 446.00 bn on post-
issue basis
z Proposal subject to regulatory approvals

33
 Except for the historical information contained herein, statements
in this Release which contain words or phrases such as 'will',
'would', ‘indicating’, ‘expected to’ etc., and similar expressions or
variations of such expressions may constitute 'forward-looking
statements'. These forward-looking statements involve a number
of risks, uncertainties and other factors that could cause actual
results to differ materially from those suggested by the forward-
looking statements. These risks and uncertainties include, but are
not limited to our ability to successfully implement our strategy,
future levels of non-performing loans, our growth and expansion
in business, the impact of any acquisitions, the adequacy of our
allowance for credit losses, technological implementation and
changes, the actual growth in demand for banking products and
services, investment income, cash flow projections, our exposure
to market risks as well as other risks detailed in the reports filed by
us with the United States Securities and Exchange Commission.
ICICI Bank undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date
thereof.

34
 Thank you

35