ICICI Bank reported impressive fiscal second-quarter 2014 (ended
Sep 30) results. The rise in top line was partially offset by
higher operating expenses and increased loan loss provisions.
Moreover, capital ratios remained strong, and loan and deposit
balances improved. However, credit quality deteriorated. We expect
continued synergies from the company's increased dependence on
domestic loans, an almost stable fund base and market leadership in
the insurance business. However, a highly competitive operating
environment, persistently rising expenses, deterioration in asset
quality and stringent regulatory requirements remain the concerns
in the near term.
Headquartered in Mumbai, India, ICICI Bank Limited was formed in
1955 at the initiative of the World Bank, the government of India,
and Indian industry representatives. The principal objective was to
create a financial institution for providing medium-term and
long-term project financing to Indian businesses.
Until the late 1980s, ICICI Bank primarily focused its
activities on project finance, providing long-term funds to a
variety of industrial projects. With the liberalization of the
financial sector in India in the 1990s, ICICI Bank transformed its
business from an institution offering only project finance to a
diversified provider that, along with its subsidiaries and other
group companies, provides a wide variety of financial products and
ICICI Bank is the second largest bank and the largest private
sector bank in India with total assets of about INR5,635.08 billion
($90.00 billion) as of Sep 30, 2013. The bank also has a network of
3,507 branches and 11,098 ATMs as of the same date. ICICI Bank
offers a wide range of banking products and financial services to
corporate and retail customers. The company's subsidiaries operate
in the areas of investment banking, life and non-life insurance,
venture capital and asset management.
ICICI Bank currently has subsidiaries in the United Kingdom,
Russia and Canada, branches in the U.S., Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai, International Finance Centre and
representative offices in the United Arab Emirates, China, South
Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's
equity shares are listed in India on the Bombay Stock Exchange and
the National Stock Exchange of India Ltd, and its American
Depository Shares (ADS) are listed on the New York Stock Exchange
The bank has 7 main business segments: Treasury, Wholesale
Banking, Life Insurance, Retail Banking, Other Banking, Other, and
ICICI Bank hopes to enhance its position as a premier provider
of banking and other financial services in India and to leverage
its competencies in financial services and technology to develop an
international business franchise.
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