Performance Review: Quarter ended December 31, 2016

ICICI Bank Limited ICICI Bank Towers Bandra Kurla Complex Mumbai 400 051

News Release January 31, 2017

Performance Review: Quarter ended December 31, 2016

• 30% year-on-year growth in savings account deposits; Current and savings account (CASA) ratio at 49.9% at December 31, 2016

• 18% year-on-year growth in retail portfolio; retail portfolio constituted about 49% of total loans at December 31, 2016

• Standalone profit after tax of `2,442 crore (US$ 360 million) for quarter ended December 31, 2016 (Q3-2017)

• Consolidated profit after tax of `2,611 crore (US$ 384 million) for Q3-2017

• Capital adequacy ratios significantly higher than regulatory requirements; total capital adequacy of 16.73% and Tier-1 capital adequacy of 13.33% on standalone basis at December 31, 2016, including profits for the nine months ended December 31, 2016 (9M-2017)

  The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Mumbai today, approved the audited accounts of the Bank for the quarter ended December 31, 2016.

  Profit & loss account

• Net interest income was `5,363 crore (US$ 790 million) in the quarter ended December 31, 2016 (Q3-2017) compared to `5,453 crore (US$ 803 million) in the quarter ended December 31, 2015 (Q3-2016) and `5,253 crore (US$ 773 million) in the quarter ended September 30, 2016 (Q2- 2017).

• Non-interest income was `3,939 crore (US$ 580 million) in Q3-2017 compared to `4,217 crore (US$ 621 million) in Q3-2016. Non-interest income in Q3-2016 included gains of `1,243 crore (US$ 183 million) relating to sale of shareholding in ICICI Prudential Life Insurance Company (ICICI Life).

• Fee income increased 10.3% on a year-on-year basis from ₹ 2,262 crore (US$ 333 million) in Q3-2016 to ₹ 2,495 crore (US$ 367 million) in Q3-2017.

• Profit before provisions & tax was ₹ 5,524 crore (US$ 813 million) in Q3- 2017. During Q3-2016 and Q2-2017, there were gains on sale of shareholding in ICICI Life of ₹ 1,243 crore (US$ 183 million) and ₹ 5,682 crore (US$ 836 million) respectively. Excluding these gains, profit before provisions & tax increased by 3.9% on a year-on-year basis and 11.5% on a sequential basis.

• Standalone profit after tax was `2,442 crore (US$ 360 million) for Q3-2017.

• Consolidated profit after tax was `2,611 crore (US$ 384 million) for Q3- 2017.

Operating review

Credit growth

The year-on-year growth in domestic advances was 12%, about seven percentage points higher compared to non-food credit growth for the banking system at December 23, 2016. The Bank continued to achieve strong growth in its retail business, resulting in a year-on-year growth of 18% in the retail portfolio. The retail portfolio constituted about 49% of the loan portfolio of the Bank at December 31, 2016, compared to 44% at December 31, 2015. Loans against Foreign Currency Non-Resident (FCNR) deposits of approximately US$ 870 million in the overseas branches portfolio matured during the quarter. Total advances increased by 5% year-on-year to `457,469 crore (US$ 67.3 billion) at December 31, 2016 from `434,800 crore (US$ 64.0 billion) at

December 31, 2015.

Deposit growth

There was a significant change in banking system deposit growth after the announcement of withdrawal of legal tender of `500 and `1,000 currency notes in November 2016. During Q3-2017, there was an accretion of ₹ 26,705 crore (US$ 3.9 billion) to current and savings account (CASA) deposits. Savings account deposits increased by `18,512 crore (US$ 2.7 billion) and current account deposits increased by `8,193 crore (US$ 1.2 billion) during Q3-2017. Savings account deposits increased by 30% and current account deposits increased by 16% on a year-on-year basis at December 31, 2016. The Bank's total CASA deposits increased by 26% year-on-year to `231,962 crore (US$

34.1 billion) at December 31, 2016. The Bank's CASA ratio was 49.9% at December 31, 2016 compared to 45.7% at September 30, 2016 and 45.2% at December 31, 2015. The average CASA ratio was 44.8% in Q3-2017 compared to 41.5% in Q2-2017 and 40.7% in Q3-2016. Total deposits increased by 14% year-on-year to `465,284 crore (US$ 68.5 billion) at December 31, 2016. The Bank had a network of 4,504 branches and 14,146 ATMs at December 31, 2016.

Capital adequacy

The Bank's capital adequacy at December 31, 2016 as per RBI's guidelines on Basel III norms was 15.98% and the Tier-1 capital adequacy was 12.55%, significantly higher than the regulatory requirements. In line with applicable guidelines, the Basel III capital ratios reported by the Bank for December 31, 2016 do not include the profits for 9M-2017. Including the profits for 9M-2017, the capital adequacy ratio for the Bank as per Basel III norms would have been 16.73% and the Tier I ratio would have been 13.33%.

Asset quality

Net non-performing assets at December 31, 2016 were ₹ 20,155 crore (US$ 3.0

billion) compared to ₹ 16,483 crore (US$ 2.4 billion) at September 30, 2016. The Bank's net non-performing asset ratio was 3.96% at December 31, 2016 compared to 3.21% at September 30, 2016. Net loans to companies whose facilities have been restructured were `6,407 crore (US$ 943 million) at December 31, 2016 compared to `6,336 crore (US$ 933 million) at September

30, 2016.

Technology initiatives

During the third quarter, the Bank further enhanced its focus on launch of new technology based offerings as well as increasing customer communication and activation of digital channels for customer accounts. The Bank launched 'Eazypay' which is India's first mobile app for merchants to accept payments on mobile phones through multiple modes - UPI, credit or debit cards, internet banking, and 'Pockets', the Bank's digital wallet. The Bank also announced that it would transform 100 villages into 'ICICI Digital Villages' in 100 days. The Bank is creating a cashless ecosystem at these villages, providing vocational training to 10,000 villagers and offering them credit linkages. The Bank was India's first bank to implement interoperable electronic toll collection. The Bank is the largest player based on number of tags issued for electronic toll collection.

The Bank's transaction volumes through digital channels continue to grow. There was a robust increase in activation rates and transaction volumes for the Bank's flagship mobile banking application, iMobile, and digital wallet, Pockets during November and December 2016. There has been a significant increase in volume and value of debit card and credit card transactions in November and December 2016.

In 9M-2017, non-branch channels accounted for close to 95% of all savings account transactions. Digital channels like internet, mobile banking, POS and call centre accounted for about 73% of the savings account transactions.

Consolidated results

Consolidated profit after tax was `2,611 crore (US$ 384 million) in Q3-2017 compared to `2,979 crore (US$ 439 million) in Q2-2017 and `3,122 crore (US$ 460 million) in Q3-2016.

Consolidated assets grew by 8% from `895,093 crore (US$ 131.8 billion) at December 31, 2015 to `964,417 crore (US$ 142.0 billion) at December 31,

2016.

Subsidiaries

ICICI Life announced results for 9M-2017 on January 24, 2017. ICICI Life continued to maintain its market leadership among the private sector players in 9M-2017. ICICI Life's retail weighted received premium increased by 28% from

₹ 3,344 crore (US$ 492 million) in 9M-2016 to ₹ 4,277 crore (US$ 630 million) in 9M-2017. ICICI Life's profit after tax was `450 crore (US$ 66 million) for Q3- 2017 compared to `436 crore (US$ 64 million) for Q3-2016.

ICICI Lombard General Insurance Company (ICICI General) maintained its leadership among the private sector players in 9M-2017. The gross written premium of ICICI General increased by 33% from `6,181 crore (US$ 0.9 billion) in 9M-2016 to `8,250 crore (US$ 1.2 billion) in 9M-2017. The profit after tax of ICICI General was `220 crore (US$ 32 million) in Q3-2017 compared to `130 crore (US$ 19 million) in Q3-2016.

The profit after tax of ICICI Prudential Asset Management Company (ICICI AMC) increased by 61% year-on-year from ₹ 82 crore (US$ 12 million) in Q3-2016 to

₹ 132 crore (US$ 20 million) in Q3-2017. ICICI AMC continues to be the largest mutual fund in India based on average assets under management for Q3-2017.

The profit after tax of ICICI Securities was at ₹ 88 crore (US$ 13 million) in Q3- 2017 compared to ₹ 55 crore (US$ 8 million) in Q3-2016. The profit after tax of ICICI Securities Primary Dealership was ₹ 182 crore (US$ 27 million) in Q3- 2017 compared to ₹ 63 crore (US$ 9 million) in Q3-2016.