Re Retail tail ba banking nking in n a d a digital gital wo - PowerPoint PPT Presentation

Re Retail tail ba banking nking in n a d a digital gital wo world rld December mber 2015 15

Cer ertai ain statem ements s in these se slides des are e forwar ard-look ooking g statem ements. s. These se statem ements s are e based ed on manageme agement's s current expecta pectation ons s and are e subject ect to uncer ertain ainty y and change ges s in circu cums mstan ance ces. s. Actual ual res esult ults s may differ ffer material ally from om those se includ uded ed in these se stateme ments nts due to a variety of factors ors. . More e inform ormat ation on about these se factors ors is contai ained ned in ICICI Bank's 's filings ngs with h the US Securi urities es and Exchange ange Commissi mission on. All finan anci cial al and other er inform ormat ation on in these se slides, des, other er than finan anci cial al and other er inform ormation n for specifi cific c subsi sidiari aries es wher ere e specifi cifical cally menti ntion oned, ed, is on an unconsol solidat ated basis s for ICICI Bank Limite mited only unles ess s specifi cifical cally y stated ed to be on a consolida olidated basis s for ICICI Bank Limi mited ted and its subsidi idiarie aries. s. Pl Pleas ase also o refer efer to the e stateme tement t of unconsol solidat ated, d, consoli olida dated d and segm gment ental al res esult ults s req equire uired by Indian n regul egulat ation ons s that has, , along ng with these se slides, des, been en filed ed with the e stock k exchanges in India where ICICI Bank’s equity shares are listed and with the New York k Stock k Excha hange nge and the e US Securi urities s and Exchange ange Commi mmiss ssion, n, and is ava vail ilable able on our website site www.i .icici icibank.co ank.com 2

1 The digi gital al shift & evolvin ing g banking g landscape pe ICICI I Bank: strong ng retail il & r rural al franchise ise 2 ICICI I Bank: leaders ership ip in technolo ology gy 3 3

1 The digi gital al shift & evolvin ing g banking g landscape pe ICICI I Bank: strong ng retail il & r rural al franchise ise 2 ICICI I Bank: leaders ership ip in technolo ology gy 3 4

Drivers ers of digitization zation in India Favourable ble demogr graphic phic profile ile A young A g popula latio tion n with median an age ge of 25 years 1,432 1,501 1,053 840 840 Risin ing g share e of working ng age ge popula latio tion • Add ddition tion of aro round und 12 milli llion to the workfo rkforce rce ever ery y year ear for or next xt five ve years ars Government’s focus on ‘Digital India’ & move to cashless economy 5

The e digital al sh shift t Sign gnific ificant nt transform formation tion in banking ng Banking g : then Banking g : now 6

Evolvin ving g banki king ng landsc scap ape Regu gula lator or encour uragin ging g innovatio tion Payments: s: expanding ding infra rastru structur ture e and number er & t types of • players rs 11 pay aymen ment t bank nk licensees, censees, 40 prepai repaid pay aymen ment t instr trume ument nt • issuer uer licen ensees, sees, 10+ pay aymen ment t aggre gregator gators Entitie ities with divers rse e sector r exper erie ience e & c capabiliti lities es granted ed payment bank licenses es Telecom com companies ies, , securiti rities es market t entity ty, , postal • servic ice, e, bottom of pyramid id players ers, , payment servic ice e provid iders ers, , technolo ology gy company and NBFCs 7

Imperat erative ives s for banks Constant t innovatio tion: n: rich h functio iona nality lity & h high gh quality ty customer er experi erien ence e Focu cus on leve vera ragin ing larger ger produ duct ct suite e & d deeper er customer er relations tionshi hips Explore lore mutually lly benefici ficial l partne ners rshi hips ps 8

1 The digi gital al shift & evolvin ing g banking g landscape pe ICICI I Bank: strong ng retail il & r rural al franchise ise 2 ICICI I Bank: leaders ership ip in technolo ology gy 3 9

Enhanc nced ed ret etail il franchise hise Sustained ned Robust t Heal althy thy Low growth gr h in loan gro rowth th in delinquencies gr granul ular r fee e portfo folio lio and NPAs income come deposits its gr growth h The Bank continue ues to scale up its retail il busine ness ss and invest t in streng ngthe theni ning ng the franchi hise e & & distrib tributi ution n infra rastru tructur ture 10

Extensive ensive geo eograp aphi hical al pres esen ence Sign gnifica ificant nt inve vestm tments ents made in distribu ribution tion Bran anch ch network ork ~52% of bra ranc nche hes in semi mi- urb rban an and nd rural ral area eas Supp uppleme lemented nted by ~13,000 000 ATMs; Ms; continuing ntinuing to invest vest in ATMs Ms 11

Strong g ret etai ail l dep eposit sit franchise hise Sign gnific ificant nt impro rovem emen ent t in funding ng profile ile • ~17% 17% CAGR in CAS ASA A deposits its since e Mar 2009 • Retail il deposits its as % of domestic tic deposits its increa eased sed from ~5 ~50% at Ma Mar 2009 9 to ~77% at Sep 2015 2015 Driven en by c contin inue ued invest stmen ments ts in physical l and techno nologica logical l infra rastru tructur ture 12

Robust st portfo folio lio growth (1 (1/2) Secured ed retail il lendin ding g drivin ing g over 20% gr growth • Retail il segm gment nt constit itute utes ~44% of the total loan book • ~20% CAGR R in retai tail loa oans ns since ce Mar r 2012 Home loans Auto loans Sep 2014 2014 Sep 2015 2015 Sep 2014 2014 Sep 2015 2015 Focus on increa easin ing g branch-based sed sourcin cing g of loans 13

Robust st portfo folio lio growth (2 (2/2) Strong g gr growth h in unsecured red person onal al loans & credit it cards Credit it cards Persona onal l loans Sep 2014 2014 Sep 2015 2015 Sep 2014 2014 Sep 2015 2015 Health thy gr growth h in credit it card issuances es & & spends Leaders ership ip position ion amongs gst private te sector r banks in debit t ca card spends ~70% of increm emen enta tal l unsecur ured ed lendin ding g to existin sting g customers ers 14

Focus s on ru rural l busi siness ess (1 (1/2) Sign gnific ificant nt prese senc nce e in rural al & s semi-ur urba ban n markets Approach to Netwo work rk lending Branc anche hes Selective geographical approach Gramin amin bra ranc nche hes Col ollatera lateral based ased BCs 1 & & CSPs 2 lend nding ing Granul anular ar por ortfo tfolio lio Partner rtner linkages nkages 2,108 08 branches es in rura ral l & s semi-ur urban n markets ts 1. 1. BCs: Busine iness corresponde ndents nts 2. 2. CSPs: Customer servic ice points nts 15

Focus s on ru rural l busi siness ess (2 (2/2) Diverse rse produc uct t suite e & g granul ular r lendin ding Key product cts s include de loans aga gainst t go gold jewelr elry, , farm equipm pmen ent t loans, kisan credit it card, agr gri term loans and loans to Self Help Group ups (SHG) Por ortfol tfolio io contri ntributes~15% utes~15% ~30% y-o-y y growth owth at to retail tail loa oans ns Sept eptemb ember er 30, 2015 Continu nue e to focu cus on gr growth th while e monito tori ring risks s 16

Sust stain ained ed moment entum um in fe fees es Retail il fees gr growin ing g by 15-20% 20% y-o-y Curren ent t share of fees • Focus on cross-sel ell l of third rd party products ts to existin ting g customers ers • Lead ader ership ship in distri stributio ution n of insur urance ance • Stron rong g gro rowt wth h in mutua ual l fund nd dis istr tributio ibution Retail il banking ng expec ected ted to contin inue ue to drive e gr growth h in overall ll fees 17

Ret etail ail ass sset et quality ty Low delin inquen quencies cies and NPAs As Focus on lendin ing g to existin ting g customers ers Analytic An ics used for credit it decisions ions Substantia tial l impro rovem emen ent t in credit dit infra rastru structur ture • Establi ablishe hed credi edit t bure reaus aus with h extens tensiv ive e database atabase eness • Incre reased ased custom tomer er awar areness Delin inque uenc ncy levels ls indic icatin ting g no sign gns of stress ss in the retail il portfo folio lio 18

1 The digi gital al shift & evolvin ing g banking g landscape pe ICICI I Bank: strong ng retail il & r rural al franchise ise 2 ICICI I Bank: leaders ership ip in technolo ology gy 3 19

ICICI I Bank has always ys been a p pioneer eer in bringing ing technology ology-ena nabled bled produ ducts ts & & servic ices es to customers ers We are focusin ing g on levera eragin ging g the three ee key transform formatio tiona nal l trends nds in technolo ology gy – mobility lity, , digi gitiza ization tion and rapid gr growth th of social l media 20