Attention Investors : Prevent Unauthorized Transactions in your Trading / demat account --> Update your Mobile Number & e mail id with your Broker / Depository Participant. Receive alerts on your Registered Mobile for all Transactions / debit and other important transactions in your Trading / demat account directly from Exchanges & CDSL on the same day..........Issued in the interest of investors.
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.
Equities | Mutual Funds | Commodities | Derivatives | IPO | Insurance
Thursday, January 18, 2018  15 mins delay  Sensex :  35,260.29Adani Ports: 414.35  [18.70]Asian Paints: 1,189.75  [4.40]Axis Bank: 583.70  [1.05]Bajaj Auto: 3,195.40  [10.50]Bharti Airtel: 494.50  [5.85]Coal India: 283.10  [8.20]Dr Reddy's Labs: 2,465.65  [23.75]H D F C: 1,897.00  [37.05]HDFC Bank: 1,931.80  [40.70]Hero Motocorp: 3,592.20  [26.15]Hind. Unilever: 1,357.60  [14.25]ICICI Bank: 346.10  [3.00]IndusInd Bank: 1,679.50  [22.50]Infosys: 1,152.75  [0.50]ITC: 272.85  [6.95]Kotak Mah. Bank: 1,045.40  [18.20]Larsen & Toubro: 1,358.80  [6.55]M & M: 758.70  [13.65]Maruti Suzuki: 9,359.00  [47.00]NTPC: 172.50  [0.80]O N G C: 194.05  [1.60]Power Grid Corpn: 197.20  [0.20]Reliance Inds.: 919.30  [5.35]St Bk of India: 302.75  [3.60]Sun Pharma.Inds.: 576.25  [7.10]Tata Motors: 418.80  [3.95]Tata Motors-DVR: 242.80  [2.40]Tata Steel: 751.85  [22.40]TCS: 2,910.10  [20.65]Wipro: 326.05  [0.30]Yes Bank: 340.25  [2.25] BSE NSE
Products & Services    >   Company Profile   >   Directors Report
ICICI Bank Ltd
Industry : Banks - Private Sector
BSE Code:532174NSE Symbol:ICICIBANKP/E :25.93
ISIN Demat:INE090A01021Div & Yield %:0.66EPS :13.35
Book Value:155.2955518Market Cap (Rs.Cr):222287.35Face Value :2

Your Directors have pleasure in presenting the Twenty-Third Annual Report of ICICI Bank Limited along with the audited financial statements for the year ended March 31, 2017.

FINANCIAL HIGHLIGHTS

The financial performance for fiscal 2017 is summarised in the following table:

Rs.in billion, except percentages Fiscal 2016 Fiscal 2017 % change
Net interest income and other income 365.46 412.42 12.8%
Operating expenses 126.83 147.55 16.3%
Provisions & contingencies (including collective contingency and related reserve for fiscal 2016)1 116.67 152.08 30.4%
Profit before tax 121.96 112.79 (7.5)%
Profit after tax 97.26 98.01 0.8%
1. Excludes provision for taxes.
Rs.in billion, except percentages Fiscal 2016 Fiscal 2017 % change
Consolidated profit before tax and minority interest 143.04 138.09 (3.5)%
Consolidated profit after tax and minority interest 101.80 101.88 0.1%

Appropriations

The profit after tax of the Bank for fiscal 2017 isRs.98.01 billion after provisions and contingencies of Rs.152.08 billion, provision for taxes of Rs.14.78 billion and all expenses. The disposable profit isRs.269.33 billion, taking into account the balance of Rs.171.32 billion brought forward from the previous year. Your Bank's dividend policy is based on the profitability and key financial metrics of the Bank, the Bank's capital position and requirements and the regulations pertaining to the same. Your Bank has a consistent dividend payment history. Given the financial performance for fiscal 2017 and in line with the Bank's dividend policy, your Directors are pleased to recommend a dividend of Rs.2.50 per equity share (pre-bonus issue) for the year ended March 31, 2017 and have appropriated the disposable profit as follows:

Rs.billion Fiscal 2016 Fiscal 2017
To Statutory Reserve, making in all Rs.212.02 billion 24.32 24.50
To Special Reserve created and maintained in terms of Section 36(1)(viii) of the Income Tax Act, 1961, making in all Rs.83.79 billion 13.50 4.50
To Capital Reserve, making in all Rs.102.61 billion1 23.82 52.93
To/(from) Investment Reserve Account, making in all Nil
To Revenue and other reserves, making in all Rs.32.00 billion2 5.01 0.01
Dividend for the year (proposed)
On equity shares for fiscal 2016 @Rs.5.00 per share of face value Rs.2.00 each3,4 29.11 (0.06)
On preference shares for fiscal 2016 @Rs.100.00 per preference share (Rs.)4 35,000
Corporate dividend tax4 2.79
Leaving balance to be carried forward to the next year 171.32 187.45

1. Includes transfer of Rs.42.61 billion on account of sale of part of equity investment in the Bank's insurance subsidiary during fiscal 2017 (Rs.19.47 billion for fiscal 2016).

2. Includes transfer of Rs.9.8 million to Reserve Fund for fiscal 2017 (Rs.9.3 million for fiscal applicable to the Sri Lanka branch.

3. Includes dividend for the prior year paid on shares issued after the balance sheet date and prior to the record date.

4. The proposed equity dividend (excluding dividend distribution tax) amounting to Rs.14.56 billion and proposed preference dividend (excluding dividend distribution tax) amounting to Rs.35,000/- are not accounted as liabilities in fiscal 2017 in accordance with the revised AS 4 – ‘Contingencies and events occurring after the balance sheet date'.

In terms of the Reserve Bank of India circular no. DBR.BP.BC.No.63/21.04.018/2016-17 dated April 18, 2017, banks are required to disclose the divergences in asset classification and provisioning consequent to RBI's annual supervisory process in their notes to accounts to the financial statements.

The Bank prepares its financial statements in accordance with the applicable accounting standards, RBI guidelines and other applicable laws/regulations. RBI, under its risk-based supervision exercise, carries out the risk assessment of the Bank on an annual basis. This assessment is initiated subsequent to the finalisation, completion of audit and publication of audited financial statements for a financial year and typically occurs a few months after the financial of this assessment, RBI separately reviews asset classification and provisioning of credit facilities given by the Bank to its borrowers. The divergences, if any, in classification or provisioning arising out of the supervisory process are given effect to in the financial statements in subsequent periods after conclusion of the exercise.

During the supervisory process for FY2016, which was conducted in FY2017, the incremental gross NPAs assessed by RBI amounted to Rs.51.05 billion. The additional provisioning assessed by RBI was Rs.10.71 billion, with a post-tax impact of Rs.7.00 billion on the net profit after tax of the Bank. All these accounts have been classifiedas NPA by the Bank during FY2017. About 40% of the total amount was classifiedas NPA during the quarter ended June 30, 2016 as per the Bank's application of relevant RBI guidelines, prior to the annual supervisory process of RBI. Out of the incremental gross NPAs amounting to Rs.51.05 billion assessed by RBI, about 84% related to accounts internally rated below investment grade in the key sectors disclosed by the Bank, and about 7% was from the restructured asset portfolio.

Bonus Shares

The Board of Directors at its Meeting held on May 3, 2017 approved issue of bonus shares, in the proportion of 1:10, i.e. 1 (One) bonus equity share of Rs.2 each for every 10 (Ten) fully paid-up equity shares held (including shares underlying ADS) as on the record date, subject to approval by the Members of the Bank. Subsequent to the bonus issue, the ratio of ADSs to equity shares will remain unaffected and each ADS after the bonus issue will continue to represent two equity share of par value of Rs.2 per share. The bonus issue of equity shares would, inter alia, require appropriate adjustments with respect to all the stock options of the Bank under The Employee Stock Option Scheme 2000.

The Bank is seeking approval of shareholders through postal ballot notice dated May 5, 2017 for increase in the Authorised Share Capital, consequential alterations to the Memorandum and Articles of Association of the Bank and issuance of bonus shares. The postal ballot notice can be viewed on the Bank's website at the weblink https://www.icicibank.com/ aboutus/notice.page.

DIVIDEND DISTRIBUTION POLICY

In accordance with the Regulation 43A of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Bank has formulated a Dividend Distribution Policy and the same is annexed herewith as Annexure F. The Policy is hosted on the website of the Bank and can be viewed (https://www.icicibank.com/ managed-assets/docs/investor/policy-for-determining-material-subsidiaries/dividend-distribution-policy.pdf).

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Pursuant to Section 186 (11) of the Companies Act, 2013, the provisions of Section 186 of Companies Act, 2013, except sub-section (1), do not apply to a loan made, guarantee given or security provided by a banking company in the ordinary course of business. The particulars of investments made by the Bank are disclosed in Schedule 8 of the Financial Statements as per the applicable provisions of Banking Regulation Act, 1949.

SUBSIDIARY, ASSOCIATE AND JOINT VENTURE COMPANIES

Jhagadia Copper Limited and FINO PayTech Limited, which were considered as associates under Section 2(6) of the Companies Act, 2013, ceased to be associates of the Bank effective June 30, 2016 and January 5, 2017 respectively. The particulars of subsidiary and associate companies as on March 31, 2017 have been included in Form MGT-9 which is annexed to this report as Annexure D.

HIGHLIGHTS OF PERFORMANCE OF SUBSIDARIES, ASSOCIATES AND JOINT VENTURE COMPANIES AND THEIR CONTRIBUTION TO THE OVERALL PERFORMANCE OF THE COMPANY

The performance of subsidiaries and associates and their contribution to the overall performance of the Bank as on March 31, 2017 has been annexed to this report as Annexure A. A summary of key financials of the Bank's subsidiaries is also included in this Annual report.

The highlights of the performance of key subsidiaries are given as a part of Management's Discussion & Analysis under section "Consolidated financials as per Indian GAAP". The Bank will make available separate audited financial statements of the These documents/details are available on the Bank's website (www.icicibank.com) and will also be available for inspection by any Member or trustee of the holder of any debentures of the Bank at its Registered Office and Corporate Office. As required by Accounting Standard 21 (AS 21) issued by the Institute of Chartered Accountants of India, the Bank's consolidated financial statements included in this Annual Report incorporate the consolidating entities.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY AND ITS FUTURE OPERATIONS

There are no significant and/or material orders passed by the Regulators or Courts or Tribunals impacting the going concern status or future operations of the Bank.

DIRECTORS AND OTHER KEY MANAGERIAL PERSONNEL

The Board of the Bank at March 31, 2017 consisted of 13 Directors, out of which seven are independent Directors, one is a Government Nominee Director and five are wholetime Directors.

Changes in the composition of the Board of Directors and other Key Managerial Personnel

The Board of Directors at their Meeting held on April 29, 2016 approved the appointment of Vijay Chandok as a wholetime Director (designated as executive Director) for a period of five years effective from the date of receipt of RBI approval. The Members at their Meeting held on July 11, 2016 approved the appointment of Vijay Chandok for a period of five years effective the date of receipt of RBI approval. RBI approved the appointment of Vijay Chandok for a period of three years effective from July 28, 2016 upto July 27, 2019.

The Board of Directors at their Meeting held on October 14, 2016 approved the appointment of Anup Bagchi as a wholetime Director (designated as executive Director) for a period of five years effective from February 1, 2017 or the date of receipt of approval from RBI, whichever is later. RBI approved the appointment of Anup Bagchi for a period of three years effective February 1, 2017 upto January 31, 2020. The said appointment is subject to the approval of Members. Approval of the Members is being sought for Anup Bagchi's appointment for five years in the Notice of the forthcoming Annual General Meeting vide item no. 7 and 8.

Amit Agrawal, Joint Secretary, Department of Financial Services, Ministry of Finance has been nominated by Government of India as a Director on the Board of the Bank effective January 16, 2017 in place of Alok Tandon.

M. S. Ramachandran, independent Director ceased to be a Director on the Board of the Bank effective close of business hours on April 24, 2017 pursuant to completion of his maximum permissible tenure of eight years as per the provisions of the Banking Regulation Act, 1949. The Board placed on record its appreciation of the valuable contribution and guidance provided by Alok Tandon and M. S. Ramachandran to the Bank.

Rajiv Sabharwal, executive Director stepped down from his position as an executive Director effective close of business hours on January 31, 2017 consequent to his decision to pursue other opportunities. The Board placed on record its appreciation for Rajiv Sabharwal's contribution to the growth of the Bank.

Declaration of Independence

All independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149 of the Companies Act, 2013 and Regulation 16 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 which have been relied on by the Bank and were placed at the Board Meeting held on April 6, 2017.

Retirement by rotation

In terms of Section 152 of the Companies Act, 2013, Vishakha Mulye would retire by rotation at the forthcoming AGM and is eligible for re-appointment. Vishakha Mulye has offered herself for re-appointment.

AUDITORS

Statutory Auditors

At the AGM held on June 30, 2014, the Members approved the appointment of M/s B S R & Co. LLP, Chartered Accountants as statutory auditors for a period of four years commencing from the Twentieth AGM till the conclusion of the Twenty-Fourth AGM subject to the annual approval of RBI and ratificationby the Members every year. As recommended by the Audit Committee, the Board has proposed the ratificationof appointment of M/s B S R & Co. LLP, Chartered Accountants as statutory auditors for fiscal 2018. Their appointment for fiscal 2018 has been approved by RBI. The appointment is accordingly proposed in the Notice of the forthcoming AGM vide item no. 5 for ratification by Members There are no qualifications, reservation or adverse remarks made by the statutory auditors in the audit report.

Secretarial Auditors

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Bank with the approval of its Board, appointed M/s. Parikh Parekh & Associates, a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Bank for the financial 31, 2017. The Secretarial Audit Report is annexed herewith as AnnexureB.Therearenoqualifications,reservation or adverse remark or disclaimer made by the auditor in the report save and except disclaimer made by them in discharge of their professional obligation.

PERSONNEL

The statement containing particulars of employees as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given in an Annexure and forms part of this report. In terms of Section 136(1) of the Companies Act, 2013, the Report and the Accounts are being sent to the Members excluding the aforesaid Annexure. Any Member interested in obtaining a copy of the Annexure may write to the Company Secretary at the Registered Office of the Bank.

INTERNAL CONTROL AND ITS ADEQUACY

The Bank has adequate internal controls and processes in place with respect to its financial statements which provide reporting and reasonableassuranceregardingthereliabilityoffinancial the preparation of financial statements. These controls and processes are driven through variouspolicies,proceduresandcertifications.The processes and controls are reviewed periodically. The Bank has a mechanism of testing the controls at regular intervals for their design and operating effectiveness to ascertain the reliability and authenticity of financial information.

DISCLOSURE UNDER FOREIGN EXCHANGE MANAGEMENT ACT, 1999

The Bank has obtained a certificate from its statutory auditors that it is in compliance with the Foreign Exchange Management Act, 1999 provisions with respect to investments made in its consolidated subsidiaries and associates during fiscal 2017.

RELATED PARTY TRANSACTIONS

The Bank undertakes various transactions with related parties in the ordinary course of business. The Bank has a Board approved policy on Related Party Transactions, which has been disclosed on the website of the Bank and can be viewed at https://www.icicibank.com/managed-assets/docs/personal/general-links/related-party-transactions-policy.pdf. The Bank also has a Board approved Group Arm's Length Policy which requires transactions with the group companies to be at arm's length. The transactions between the Bank and its related parties, during the year ended March 31, 2017, were in the ordinary course of business and based on the principles of arm's length. The details of material related party transactions at an aggregate level for year ended March 31, 2017 are given in Annexure C.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as Annexure D.

BUSINESS RESPONSIBILITY REPORTING

Business Responsibility Report as stipulated under Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been hosted on the website of the Bank (http://www.icicibank.com/aboutus/annual.html). Any Member interested in obtaining a physical copy of the same may write to the Company Secretary at the Registered Office of the Bank.

RISK MANAGEMENT FRAMEWORK

The Bank's risk management framework is based on a clear understanding of various risks, disciplined risk assessment and measurement procedures and continuous monitoring. The policies and procedures established for this purpose are continuously benchmarked with international best practices. The Board of Directors has oversight on all the risks assumed by the Bank. Specific Committees have been constituted to facilitate focused oversight of various risks, as follows: The Risk Committee of the Board reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational, outsourcing risks and business continuity management. The Committee also reviews the Risk Appetite & Enterprise Risk Management frameworks, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing. The stress testing framework includes a range of Bank-specific, market (systemic) and combined scenarios. The ICAAP exercise covers the domestic and overseas operations of the Bank, banking subsidiaries and material non-banking subsidiaries. The Committee reviews migration to the advanced approaches under Basel II and implementation of Basel III, risk return profile of the Bank, and the activities of the Asset Liability Management reviews the level and direction of major risks pertaining to credit, market, liquidity, operational, technology, compliance, group, management and capital at risk as part of risk dashboard. In addition, the Committee has oversight on risks of subsidiaries covered under the Group Risk Management Framework. The Risk Committee also reviews the Liquidity Contingency Plan for the Bank and the various thresholds set out in the Plan.

The Credit Committee of the Board, apart from sanctioning credit proposals based on the Bank's credit authorisation framework, reviews developments in key industrial sectors and the Bank's exposure to these sectors as well as to large borrower accounts and borrower groups. The Credit Committee also reviews the major credit portfolios, non-performing loans, accounts under watch, overdues and incremental sanctions.

The Audit Committee of the Board provides direction to and monitors the quality of the internal audit function and also monitors compliance with inspection and audit reports of Reserve Bank of India, other regulators and statutory auditors.

The Asset Liability Management Committee provides guidance for management of liquidity of the overall Bank and management of interest rate risk in the banking book within the broad parameters laid down by the Board of Directors/ Risk Committee.

Summaries of reviews conducted by these Committees are reported to the Board on a regular basis.

Policies approved from time to time by the Board of Directors/Committees of the Board form the governing framework for each type of risk. The business activities are undertaken within this policy framework. Independent groups and subgroups have been constituted across the Bank to facilitate independent evaluation, monitoring and reporting of various risks. These groups function independently of the business groups/sub-groups.

The Bank has dedicated groups, namely, the Risk Management Group, Compliance Group, Corporate Legal Group, Internal Audit Group and the Financial Crime Prevention & Reputation Risk Management Group, with a mandate to identify, assess and monitor all of the Bank's principal risks in accordance with well-defined policies and procedures. The Risk Management Group is further organised into the Credit Risk Management Group, Market Risk Management Group, Operational Risk Management Group and Information Security Group. These groups are completely independent of all business operations and coordinate with representatives of the business units to implement the Bank's risk management policies and methodologies. The Internal Audit and Compliance groups are responsible to the Audit Committee of the Board.

INFORMATION REQUIRED UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL), ACT, 2013

Please refer Principle 3 under Section E of the Business Responsibility Report.

CORPORATE GOVERNANCE

The corporate governance framework at ICICI Bank is based on an effective independent Board, the separation of the Board's supervisory role from the executive management and the constitution of Board Committees, which at March 31, 2017 comprised majority of independent Directors and most of the Committees were chaired by independent Directors, to oversee critical areas.

I. Philosophy of Corporate Governance

ICICI Bank's corporate governance philosophy encompasses regulatory and legal requirements, which aims at a high level of business ethics, effective supervision and enhancement of value for all stakeholders. The corporate governance framework adopted by the Bank already encompasses significant portion of the recommendations contained in the ‘Corporate Governance Voluntary Guidelines 2009' issued by the Ministry of Corporate Affairs, Government of India.

Whistle Blower Policy

The Bank has formulated a Whistle Blower Policy. The policy comprehensively provides an opportunity for any employee/ Director of the Bank to raise any issue concerning breaches of law, accounting policies or any act resulting in financial or reputation loss and misuse of office or suspected or actual fraud. The policy provides for a mechanism to report such concerns to the Audit Committee through specified channels. The policy has been periodically communicated to the employees and also posted on the Bank's intranet. The Whistle Blower Policy complies with the requirements of Vigil mechanism as stipulated under Section 177 of the Companies Act, 2013. The details of establishment of the Whistle Blower Policy/Vigil mechanism have been disclosed on the website of the Bank.

Code of Conduct as prescribed under Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015

In accordance with the requirements of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, ICICI Bank has instituted a comprehensive code of conduct to regulate, monitor and report trading by its directors, employees and other connected persons.

Group Code of Business Conduct and Ethics

The Group Code of Business Conduct and Ethics for Directors and employees of the ICICI Group aims at ensuring consistent standards of conduct and ethical business practices across the constituents of the ICICI Group. This Code is reviewed on an annual basis and the latest Code is available on the website of the Bank (www.icicibank.com). Pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, a confirmation from the Managing Director & CEO regarding compliance with the Code by all the Directors and senior management forms part of the Annual Report.

Material Subsidiaries

In accordance with the requirements of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Bank has formulated a Policy for determining Material Subsidiaries and the same has been hosted on the website of the Bank (https://www.icicibank.com/managed-assets/docs/investor/policy-for-determining-material-subsidiaries/policy-for-determining-material-subsidiaries.pdf).

Familiarisation Programme for independent Directors

Independent Directors are familiarised with their roles, rights and responsibilities in the Bank as well as with the nature of industry and business model of the Bank through induction programmes at the time of their appointment as Directors and through presentations on economy & industry overview, key regulatory developments, strategy and performance which are made to the Directors from time to time. The details of the familiarisation programmes have been hosted on the website of the Bank and can be accessed on the link: (http://www.icicibank.com/managed-assets/docs/about-us/board-of-directors/familiarisation-programme-for-independent-directors.pdf).

CEO/CFO Certification

In terms of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the certification by the Managing Director & CEO and Chief Financial Officer on the financial statements and internal controls relating to financial reporting has been obtained.

Board of Directors

ICICI Bank has a broad-based Board of Directors, constituted in compliance with the Banking Regulation Act, 1949, the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in accordance with good corporate governance practices. The Board functions either as a full Board or through various committees constituted to oversee specific operational areas. The Board has constituted various committees, namely, Audit Committee, Board Governance, Remuneration & Nomination Committee, Corporate Social Responsibility Committee, Credit Committee, Customer Service Committee, Fraud Monitoring Committee, Information Technology Strategy Committee, Risk Committee, Stakeholders Relationship Committee and Review Committee for Identification of Wilful Defaulters/Non Co-operative Borrowers. At March 31, 2017, independent Directors constituted a majority of these Board Committees and all Committees except the Credit Committee and Review Committee for Identification of Wilful Defaulters/Non Co-operative Borrowers were chaired by independent Directors.

There were nine Meetings of the Board during fiscal 2017 - on April 29, June 28, July 29, September 20, September 26, October 14, November 7 and November 21 in 2016, and January 31in 2017.

At March 31, 2017, the Board of Directors consisted of 13 members. There were no inter-se relationships between any of the Directors. The names of the Directors, their attendance at Board Meetings during the year, attendance at the last Annual General Meeting (AGM) and the number of other directorships and board committee memberships held by them at March 31, 2017 are set out in the following table.

Number of other directorships

Name of Director Board Meetings attended during the year Attendance at last AGM (July 11, 2016) of Indian public limited companies1 of other companies2 Number of other committee3 memberships
Independent Directors
M. K. Sharma, Chairman (DIN: 00327684) 9/9 Present 4 6 4(2)
Dileep Choksi* (DIN: 00016322) 8/9 Present 7 3 6(4)
Homi Khusrokhan (DIN: 00005085) 8/9 Present 3 1 2(1)
M. S. Ramachandran (DIN: 00943629) 9/9 Present 6 3 3(1)
Tushaar Shah# (DIN: 03055738) 6/9 Present
V. K. Sharma (DIN: 02449088) 4/9 Absent 7 5
V. Sridar (DIN: 02241339) 8/9 Present 9 7(5)
Government Nominee Director
Alok Tandon (upto January 16, 2017) (DIN: 01841717) 0/8 Absent N.A. N.A. N.A.
Amit Agrawal (w.e.f. January 16, 2017) (DIN: 07117013) 0/1 N.A.
Wholetime/Executive Directors
Chanda Kochhar (DIN: 00043617) 9/9 Present 4 2
N. S. Kannan (DIN: 00066009) 9/9 Present 4 2 2
K. Ramkumar (upto close of business hours on April 29, 2016) (DIN: 00244711) 1/1 N.A. N.A. N.A.Rs. N.A.
Rajiv Sabharwal (upto close of business hours on January 31, 2017) (DIN: 00057333) 8/9 Present N.A. N.A. N.A.
Vishakha Mulye (DIN: 00203578) 9/9 Present 1
Vijay Chandok (w.e.f. July 28, 2016) (DIN: 01545262) 7/7 N.A. 2 2 1
Anup Bagchi (w.e.f. February 1, 2017) (DIN: 00105962) 0/0 N.A. 3 2

* Participated in one Meeting through tele-conference.

# Participated in two Meetings through tele-conference.

1. Comprises public limited companies incorporated in India.

2. Comprises private limited companies incorporated in India, foreign companies, statutory bodies and insurance corporations but excludes Section 8 companies and not for profit foreign companies.

3. Comprises only Audit Committee and Stakeholders' Relationship Committee of Indian public limited companies. Figures in parentheses indicate committee chairpersonships.

Upon completion of his tenure as a non-executive Director, M. S. Ramachandran ceased to be a Director on the Board of the Bank with effect from April 25, 2017.

In terms of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the number of Committees (Audit Committee and Stakeholders' Relationship Committee) of public limited companies in which a Director is a member/chairman were within the limits provided under listing regulations, for all the Directors of the Bank. The number of directorships of each independent Director is also within the limits prescribed under listing regulations.

The terms of reference of the Board Committees as mentioned earlier, their composition and attendance of the respective Members at the various Committee Meetings held during fiscal 2017 are set out below:

II. Audit Committee

Terms of Reference

The Audit Committee provides direction to the audit function and monitors the quality of internal and statutory audit. The responsibilities of the Audit Committee include examining the financial statements and auditors' report and overseeing the financial reporting process to ensure fairness, sufficiency and credibility of financial statements, review of the quarterly and annual financial statements before submission to the Board, recommendation of appointment, terms of appointment, fixing remuneration and removal of central and branch statutory auditors and chief internal auditor, approval of payment to statutory auditors for other permitted services rendered by them, review and monitor with the management the auditor's independence, performance and effectiveness of audit process, approval of transactions with related parties or any subsequent modifications, review of statement of significant related party transactions, review of functioning of Whistle Blower Policy, review of the adequacy of internal control systems and the internal audit function, review of compliance with inspection and audit reports and reports of statutory auditors, review of the findings of internal investigations, review of management letters/ letters on internal control weaknesses issued by statutory auditors, reviewing with the management the statement of uses/ application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilised for the purposes other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring agency, monitoring the utilisation of proceeds of a public or rights issue and making appropriate recommendations to the Board to take steps in this matter, discussion on the scope of audit with external auditors, examination of reasons for substantial defaults, if any, in payment to stakeholders, valuation of undertakings or assets, evaluation of risk management systems, scrutiny of inter-corporate loans and investments. The Audit Committee is also empowered to appoint/oversee the work of any registered public accounting firm, establish procedures for receipt and treatment of complaints received regarding accounting and auditing matters and engage independent counsel as also provide for appropriate funding for compensation to be paid to any firm/advisors. In addition, the Audit Committee also exercises oversight on the regulatory compliance function of the Bank. The Audit Committee is also empowered to approve the appointment of the CFO (i.e., the wholetime Finance Director or any other person heading the finance function or discharging that function) after assessing the qualifications, experience and background, etc. of the candidate.

Composition

At March 31, 2017, the Audit Committee comprised of four independent Directors and was chaired by Homi Khusrokhan, an independent Director. There were nine Meetings of the Committee during the year.

The details of the composition of the Committee and attendance at its Meetings are set out in the following table:

Name of Member Number of meetings attended
Homi Khusrokhan, Chairman 8/9
Dileep Choksi, Alternate Chairman 9/9
M. S. Ramachandran 7/9
V. Sridar* 8/9

* Participated in one Meeting through video - conference.

Upon completion of his tenure as a non-executive Director, M. S. Ramachandran ceased to be a Member of the Committee with effect from April 25, 2017.

III. Board Governance, Remuneration & Nomination Committee

Terms of Reference

The functions of the Committee include recommending appointments of Directors to the Board, identifying persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down and recommending to the Board their appointment and removal, formulate a criteria for the evaluation of the performance of the Wholetime/independent Directors and the Board and to extend or continue the term of appointment of independent Director on the basis of the report of performance evaluation of independent Directors, recommending to the Board a policy relating to the remuneration for the Directors, key managerial personnel and other employees, recommending to the Board the remuneration (including performance bonus and perquisites) to wholetime Directors (WTDs), commission and fee payable to non-executive Directors subject to applicable regulations, approving the policy for and quantum of bonus payable to the members of the staff including senior management and key managerial personnel, formulating the criteria for determining qualifications, positive attributes and independence on Board diversity, framing guidelines for the Employees Stock Option Scheme (ESOS) and decide on the grant of Bank's stock options to employees and WTDs of the Bank and its subsidiary companies.

Composition

At March 31, 2017, the Board Governance, Remuneration & Nomination Committee comprised of three independent Directors and was chaired by Homi Khusrokhan, an independent Director. There were ten Meetings of the Committee during the year. The details of the composition of the Committee and attendance at its Meetings are set out in the following table:

Name of Member Number of meetings attended
Homi Khusrokhan, Chairman 8/10
M. K. Sharma 9/10
M. S. Ramachandran 10/10

Upon completion of his term as a non-executive Director M. S. Ramachandran ceased to be a Member of the Committee with effect from April 25, 2017. The Board at its Meeting held on April 6-7, 2017 reconstituted the Committee pursuant to which V. K. Sharma was appointed as a Member of the Committee with effect from April 6, 2017.

Policy/Criteria for Directors' Appointment

The Bank with the approval of its Board Governance, Remuneration & Nomination Committee (Committee) has put in place a policy on Directors' appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a Director as well as a policy on Board diversity. The policy has been framed based on the broad principles as outlined hereinafter. The Committee would evaluate the composition of the Board and vacancies arising in the Board from time to time. The Committee while recommending candidature of a Director would consider the special knowledge or expertise possessed by the candidate as required under Banking Regulation Act, 1949. The Committee would assess the fit and proper credentials of the candidate and the companies/entities with which the candidate is associated either as a director or otherwise and as to whether such association is permissible under RBI guidelines and the internal norms adopted by the Bank. For the above assessment, the Committee would be guided by the guidelines issued by RBI in this regard.

The Committee will also evaluate the prospective candidate for the position of a Director from the perspective of the criteria for independence prescribed under Companies Act, 2013 as well as the Listing Regulations. For a non-executive Director to be classified as independent he/she must satisfy the criteria of independence as prescribed and sign a declaration of independence. The Committee will review the same and determine the independence of a Director.

The Committee based on the above assessments will make suitable recommendations on the appointment of Directors to the Board.

Remuneration policy

Reserve Bank of India (RBI) vide its circular DBOD No. BC. 72/29.67.001/2011-12 dated January 13, 2012 has issued guidelines on "Compensation of wholetime Directors/Chief executive Officers/Risk takers and Control function staff etc." for implementation by private sector banks and foreign banks from the financial year 2012-13. The Bank adopted a Compensation Policy in January 2012 which is amended from time to time based on regulatory requirements. The Compensation Policy of the Bank as adopted in line with the RBI circular is in compliance with the requirements for the Remuneration Policy as prescribed under Companies Act, 2013. Further details with respect to the Compensation Policy are provided under the section titled "Compensation Policy and Practices".

The remuneration payable to non-executive/independent Directors is governed by the provisions of the Banking Regulation Act, 1949, RBI guidelines issued from time to time and the provisions of the Companies Act, 2013 and related rules to the extent it is not inconsistent with the provisions of the Banking Regulation Act, 1949/RBI guidelines. The remuneration for the non-executive/independent Directors (other than Government nominee) would be sitting fee for attending each Meeting of the Committee/Board as approved by the Board from time to time within the limits as provided under Companies Act, 2013 and related rules. RBI vide its guidelines dated June 1, 2015 regarding Compensation of non-executive Directors (NEDs) (except part-time Chairman) of Private Sector Banks has permitted payment of profit related commission up to Rs.1,000,000 per annum for non-executive Directors (other than non-executive (part-time) Chairman). The Members at their Meeting held on July 11, 2016 approved the payment of profit related commission uptoRs.1,000,000 per annum to non-executive Directors (other than the non-executive (part-time) Chairman and the Government Nominee Director), for each year effective from the financial year ended March 31, 2016. For the non-executive (part-time) Chairman, the remuneration, in addition to sitting fee includes such fixed payments on such periodicity as may be recommended by the Board and approved by the Members and RBI from time to time, maintaining a Chairman's office at the Bank's expense, bearing expenses for travel on official visits and participation in various forums (both in India and abroad) as Chairman of the Bank and bearing travel/halting/other expenses and allowances for attending to duties as Chairman of the Bank and any other modes of remuneration as may be permitted by RBI through any circulars/guidelines as may be issued from time to time.

All the non-executive/independent Directors would be entitled to reimbursement of expenses for attending Board/ Committee Meetings, official visits and participation in various forums on behalf of the Bank.

Performance evaluation of the Board, Committees and Directors

The Bank with the approval of its Board Governance, Remuneration & Nomination Committee has put in place an evaluation framework for evaluation of the Board, Directors and Chairperson. The Board also carries out an evaluation of the working of its Audit Committee, Board Governance, Remuneration & Nomination Committee, Corporate Social Responsibility Committee, Credit Committee, Customer Service Committee, Fraud Monitoring Committee, Information Technology Strategy Committee, Risk Committee, Stakeholders Relationship Committee and Review Committee for identification of wilful defaulters/non co-operative borrowers. The evaluation of the Committees is based on the assessment of the compliance with the terms of reference of the Committees.

The evaluations for the Directors, the Board and the Chairperson of the Board were undertaken through circulation of three questionnaires, one for the Directors, one for the Board and one for the Chairperson of the Board. The performance of the Board was assessed on select parameters related to roles, responsibilities and obligations of the Board and functioning of the Committees including assessing the quality, quantity and timeliness of flow of information between the company management and the Board that is necessary for the Board to effectively and reasonably perform their duties. The evaluation criteria for the Directors was based on their participation, contribution and offering guidance to and understanding of the areas which were relevant to them in their capacity as members of the Board. The evaluation criteria for the Chairperson of the Board besides the general criteria adopted for assessment of all Directors, focused incrementally on leadership abilities, effective management of meetings and preservation of interest of stakeholders. The evaluation process for wholetime Directors is further detailed under the section titled "Compensation Policy and Practices".

Details of Remuneration paid to wholetime Directors

The Board Governance, Remuneration & Nomination Committee determines and recommends to the Board the amount of remuneration, including performance bonus and perquisites, payable to the wholetime Directors.

The following table sets out the details of remuneration (including perquisites and retiral benefits) paid to wholetime Directors for fiscal 2017:

Details of Remuneration (Rs.)
Chanda Kochhar N. S. Kannan K. Ramkumar1 Rajiv Sabharwal4 Vishakha Mulye Vijay Chandok Anup Bagchi
Basic 26,670,840 17,619,600 5,778,471 14,683,000 17,619,600 15,930,000 6,637,500
Performance bonus for fiscal 20175 22,028,362 14,766,738 4,854,818 N.A. 14,766,738 13,539,876 5,601,428
Allowances and perquisites6 24,387,366 15,331,842 26,199,599 17,178,774 14,352,803 15,072,215 5,698,078
Contribution to provident fund 3,200,496 2,114,354 693,418 1,761,958 2,114,354 1,911,600 796,500
Contribution to superannuation fund 0 2,642,940 753,712 0 2,642,940 2,389,500 995,625
Contribution to gratuity fund 2,221,681 1,467,713 481,347 1,223,094 1,467,713 1,326,969 552,904
Stock options7 (Numbers)
Fiscal 20175 1,375,000 685,000 N.A. N.A. 685,000 685,000 685,000
Fiscal 2016 1,375,000 685,000 685,000 685,000 685,000 495,000 N.A.
Fiscal 2015 1,450,000 725,000 725,000 655,000 N.A. 420,000 N.A.

Bank. His last working date was July 29, 2016.

2. Vijay Chandok assumed office as executive Director with effect from July 28, 2016, post approval granted by RBI.

3. Anup Bagchi has joined the services of the Bank on November 1, 2016, and he assumed office from February 1, 2017.

4. Rajiv Sabharwal's last working day with the Bank was January 31, 2017.

5. Options and performance bonus for fiscal 2017 are subject to Reserve Bank of

6. Allowances and perquisites exclude stock options exercised during fiscal 2017 which does not constitute remuneration paid to the wholetime Directors for fiscal 2017.

7. The above table excludes special grant of stock options approved by RBI in November 2015 aggregating to 2,100,000 for Chanda

Kochhar; 1,000,000 each for N. S. Kannan, K. Ramkumar and Rajiv Sabharwal and 700,000 for Vijay Chandok.

Perquisites (evaluated as per Income-tax rules wherever applicable and otherwise at actual cost to the Bank) such as the benefit of the Bank's furnished accommodation, gas, electricity, water and furnishings, club fees, group insurance, use of car and telephone at residence or reimbursement of expenses in lieu thereof, medical reimbursement, leave and leave travel concession, education benefits, provident fund, superannuation fund and gratuity, were provided in accordance with the scheme(s) and rule(s) applicable from time to time. In line with the staff loan policy applicable to specified grades to avail ofemployeeswhofulfill loans for purchase of residential property, the wholetime Directors are also eligible for housing loans subject to approval of RBI.

The Members have approved the minimum and maximum ranges for remuneration as well as supplementary allowance for the Wholetime Directors. In terms of the said approvals, the monthly basic salary for Chanda Kochhar, Managing Director & CEO would be within the range of Rs.1,350,000 Rs.2,600,000, N. S. Kannan, Vishakha Mulye, Vijay Chandok and Anup Bagchi, executive Directors would be within the range of Rs.950,000 Rs.1,700,000. The monthly supplementary allowances for the Managing Director & CEO, would be within the range of Rs.1,000,000 - Rs.1,800,000, for N. S. Kannan, Vishakha Mulye, Vijay Chandok and Anup Bagchi, executive Directors would be within the range of Rs.675,000 - Rs.1,225,000. The Board would determine the actual remuneration/supplementary allowance payable within the above ranges from time to time subject to the approval of RBI.

Details of Remuneration paid to non-executive Directors

As provided under Article 132 of the Articles of Association of the Bank, the fees payable to a non-executive Director (other than to the nominee of Government of India) for attending a Meeting of the Board or Committee thereof are decided by the Board of Directors from time to time within the limits prescribed by the Companies Act, 2013 and the rules thereunder. The Board of Directors have approved the payment of Rs.100,000 as sitting fee for each Meeting of the Board and Rs.20,000 as sitting fee for each Meeting of the Committee attended.

The Board of Directors at its Meeting held on June 9, 2015 and subsequently Members through a postal ballot resolution dated April 22, 2016 approved a remuneration range of Rs.3,000,000 Rs.5,000,000 per annum for M. K. Sharma, Chairman of the Board with the remuneration for each year to be determined by the Board within this range. The Board approved remuneration of Rs.3,000,000 per annum effective July 1, 2015 to be paid to M. K.Sharmaforthefirstyear of his tenure. RBI while approving the appointment of M. K. Sharma for the period July 1, 2015 to June 30, 2018 also approved the above remuneration. The Board at its Meeting held on June 28, 2016 approved the revision in remuneration for M. K. Sharma to Rs.3,500,000 per annum for the period July 1, 2016 to June 30, 2017. The same has been approved by RBI.

Information on the total sitting fees paid to each non-executive Director during fiscal 2017 for attending Meetings of the Board and its Committees is set out in the following table:

Name of Director Amount (Rs.)
M. K. Sharma 1,220,000
Dileep Choksi 1,180,000
Homi Khusrokhan 2,060,000
M. S. Ramachandran (ceased w.e.f. April 25, 2017) 2,000,000
Tushaar Shah 620,000
V. K. Sharma 460,000
V. Sridar 1,480,000
Amit Agarwal1
Total 9,020,000

1. Being a Government Nominee Director, not entitled to receive sitting fees.

The details of shares and convertible instruments of the Bank, held by the non-executive Directors as at March 31, 2017 are set out in the following table:

Name of Director Instrument No. of shares held
M. K. Sharma Equity 50,000
Dileep Choksi Equity 2,500
Homi Khusrokhan Equity 3,5001
M. S. Ramachandran Equity 1,300
Tushaar Shah
V. K. Sharma
V. Sridar
Amit Agarwal

1. Shares held jointly with relatives.

Remuneration disclosures as required under RBI guidelines

The RBI circular DBOD No. BC. 72/29.67.001/2011-12 on "Compensation of wholetime Directors/Chief Executive Officers/ Risk takers and Control function staff etc." requires the Bank to make following disclosures on remuneration on an annual basis in their Annual Report:

COMPENSATION POLICY AND PRACTICES

(A) Qualitative disclosures a) Information relating to the bodies that oversee remuneration.

Name, composition and mandate of the main body overseeing remuneration.

The Board Governance, Remuneration & Nomination Committee (BGRNC/ Committee) is the body which oversees the remuneration aspects. The functions of the Committee include recommending appointments of Directors to the Board, identifying persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down and recommending to the Board their appointment and removal, formulate a criteria for the evaluation of the performance of the whole time/ independent Directors and the Board and to extend or continue the term of appointment of independent Director on the basis of the report of performance evaluation of independent Directors, recommending to the Board a policy relating to the remuneration for the Directors, Key Managerial Personnel and other employees, recommending to the Board the remuneration (including performance bonus and perquisites) to wholetime Directors (WTDs), commission and fee payable to non- executive Directors subject to applicable regulations, approving the policy for and quantum of bonus payable to members of the staff including senior management and key managerial personnel, formulating the criteria for determining qualifications, positive attributes and independence of a Director, framing policy on Board diversity, framing guidelines for the Employee Stock Option Scheme (ESOS) and decide on the grant of the Bank's stock options to employees and WTDs of the Bank and its subsidiary companies.

External consultants whose advice has been sought, the body by which they were commissioned, and in what areas of the remuneration process.

The Bank did not take advice from an external consultant on any area of remuneration during the year ended March 31, 2017.

Scope of the Bank's remuneration policy (eg. by regions, business lines), including the extent to which it is applicable to foreign subsidiaries and branches.

The Compensation Policy of the Bank, as last amended during FY2017 and approved by the BGRNC and the Board at its Meeting held on April 28, 2016, pursuant to the guidelines issued by RBI, covers all employees of the Bank, including those in overseas branches of the Bank. In addition to the Bank's Compensation Policy guidelines, the overseas branches also adhere to relevant local regulations.

Type of employees covered and number of such employees.

All employees of the Bank are governed by the compensation policy. The total number of permanent employees governed by the compensation policy of the Bank at March 31, 2017 was 81,129. b) Information relating to the design and structure of remuneration processes.

Key features and objectives of remuneration policy.

The Bank has under the guidance of the Board and the BGRNC, followed compensation practices intended to drive meritocracy within the framework of prudent risk management. This approach has been incorporated in the Compensation Policy, the key elements of which are given below.

Effective governance of compensation:

The BGRNC has oversight over compensation. The Committee defines Key Performance Indicators (KPIs) for WTDs and equivalent positions and the organisational performance norms for bonus based on the financial and strategic plan approved by the Board. The KPIs include both quantitative and qualitative aspects. The BGRNC assesses organisational performance as well as the individual performance for WTDs and equivalent positions. Based on its assessment, it makes recommendations to the Board regarding compensation for WTDs and equivalent positions and bonus for employees, including senior management and key management personnel.

Alignment of compensation philosophy with prudent risk taking:

The Bank seeks to achieve a prudent mix of fixed and variable pay, with a higher proportion of variable pay at senior levels and no guaranteed bonuses. Compensation is sought to be aligned to both financial and non-financial indicators of performance including aspects like risk management and customer service. In addition, the Bank has an employee stock option scheme aimed at aligning compensation to long term performance through stock option grants that vest over a period of time. Compensation to staff in financial and risk control functions is independent of the business areas they oversee and depends on their performance assessment.

Whether the Remuneration Committee reviewed the firm's remuneration policy during the past year, and if so, an overview of any changes that were made

During FY2017, the Bank's Compensation Policy was reviewed by the BGRNC and the Board on April 28, 2016. The disclosures were reviewed pursuant to RBI circular on Disclosures in Financial Statements.

Discussion of how the Bank ensures that risk and compliance employees are remunerated independently of the businesses they oversee.

The compensation of staff engaged in control functions like Risk and Compliance depends on their performance, which is based on achievement of the key results of their respective functions. Their goal sheets do not include any business targets. c) Description of the ways in which current and future risks are taken into account in the remuneration processes.

Overview of the key risks that the Bank takes into account when implementing remuneration measures.

The Board approves the risk framework for the Bank and the business activities of the Bank are undertaken within this framework to achieve the financial plan. The risk framework includes the Bank's risk appetite, limits framework and policies and procedures governing various types of risk. KPIs of WTDs & equivalent positions, as well as employees, incorporate relevant risk management related aspects. For example, in addition to performance targets in areas such as growth and profits, performance indicators include aspects such as the desired funding profile and asset quality. The BGRNC takes into consideration all the above assessing organisational and individual performance and making compensation-related recommendations to the Board.

Overview of the nature and type of key measures used to take account of these risks, including risk difficult to measure

The annual performance targets and performance evaluation incorporate both qualitative and quantitative aspects including asset quality, provisioning, increase in stable funding sources, refinement/improvement of the risk management framework, effective management of stakeholder relationships and mentoring key members of the top and senior management.

Discussion of the ways in which these measures affect remuneration.

Every year, the financial plan/ targets are formulated in conjunction with a risk framework with limit structures for various areas of risk/ lines of business, within which the Bank operates to achieve the financial ensure effective alignment of compensation with prudent risk taking, the BGRNC takes into account adherence to the risk framework in conjunction with which the financial plan/ targets have been formulated. KPIs of WTDs & equivalent positions, as well as employees, incorporate relevant risk management related aspects. For example, in addition to performance targets in areas such as growth and profits, performance indicators include aspects such as the desired funding profile and asset quality. The BGRNC takes into consideration all the above aspects while assessing organisational and individual performance and making compensation-related recommendations to the Board.

Discussion of how the nature and type of these measures have changed over the past year and reasons for the changes, as well as the impact of changes on remuneration

The nature and type of these measures have not changed over the past year and hence, there is no impact on remuneration.

d) Description of the ways in which the Bank seeks to link performance during a performance measurement period with levels of remuneration.

Overview of main performance metrics for Bank, top level business lines and individuals.

The main performance metrics include profits, loan growth, deposit growth, risk metrics (such as quality of assets), compliance with regulatory norms, refinementof risk management processes and customer service. The specific metrics and weightages for various metrics vary with the role and level of the individual.

Discussion of how amounts of individual remuneration are linked to the Bank-wide and individual performance.

The BGRNC takes into consideration all the above aspects while assessing organisational and individual performance and making compensation-related recommendations to the Board regarding the level of performance bonus for employees and the performance assessment of WTDs and equivalent positions. The performance assessment of individual employees is undertaken based on achievements vis-a-vis their goal sheets, which incorporate the various aspects/ metrics described earlier.

Discussion of the measures the Bank will in general implement to adjust remuneration in the event that performance metrics are weak, including the Bank's criteria for determining ‘weak' performance metrics.

The Bank's Compensation Policy outlines the measures the Bank will implement in the event of a reasonable evidence of deterioration in financial performance. Should such an event occur in the manner outlined in the policy, the BGRNC may decide to apply malus on none, part or all of the unvested deferred variable compensation.

e) Description of the ways in which the Bank seeks to adjust remuneration to take account of the longer term performance.

Discussion of the Bank's policy on deferral and vesting of variable remuneration and, if the fraction of variable remuneration that is deferred differs across employees or groups of employees, a description of the factors that determine the fraction and their relative importance.

The quantum of bonus for an employee does not exceed a certain percentage (as stipulated in the compensation policy) of the total fixed pay in a year. Within this percentage, if the quantum of bonus exceeds a predefined threshold percentage of the total fixed pay, a part of the bonus is deferred and paid over a period. These thresholds for deferrals are same across employees.

Discussion of the Bank's policy and criteria for adjusting deferred remuneration before vesting and (if permitted by national law) after vesting through claw back arrangements.

The deferred portion of variable pay is subject to malus, under which the Bank would prevent vesting of all or part of the variable pay in the event of an enquiry determining gross negligence, breach of integrity or in the event of a reasonable evidence of deterioration in financial performance. In such cases, variable pay already paid out may also be subjected to clawback arrangements, as applicable.

f) Description of the different forms of variable remuneration that the Bank utilises and the rationale for using these different forms.

Overview of the forms of variable remuneration offered. A discussion of the use of different forms of variable remuneration and if the mix of different forms of variable remuneration differs across employees or group of employees, a description of the factors that determine the mix and their relative importance.

The Bank pays performance linked retention pay (PLRP) to its front-line staff and junior management and performance bonus to its middle and senior management. PLRP aims to reward front line and junior managers, mainly on the basis of skill maturity attained through experience and continuity in role which is a key differentiator for customer service. The Bank also pays variable pay to sales officers and relationship managers in wealth management roles while ensuring that such pay-outs are in accordance with applicable regulatory requirements.

The Bank ensures higher proportion of variable pay at senior levels and lower variable pay for front-line staff and junior management levels.

(B) Quantitative disclosures

The following table sets forth, for the period indicated, the details of quantitative disclosure for remuneration of wholetime Directors (including MD & CEO) and equivalent positions.

Particulars At March 31, 2016 At March 31, 2017
Number of meetings held by the BGRNC during the financialyear 8 10
Remuneration paid to its members during the financial year ( Rs.in million) (sitting fees) 0.5 0.5
Number of employees having received a variable remuneration award during the financial year Nil 6
Number and total amount of sign-on awards made during the financial year Nil Nil
Number and total amount of guaranteed bonuses awarded during the financial year Nil Nil
Details of severance pay, in addition to accrued benefits Nil Nil
Breakdown of amount of remuneration awards for the financial year ( Rs.in million)
Fixed1 201.7 231.5
Variable2 Nil 75.6
Deferred
Non-deferred 75.6
Share-linked instruments 4,610,0003 4,115,000
Total amount of deferred remuneration paid out in the financial year 26.9 16.0
Total amount of outstanding deferred remuneration Cash (Rs.in million) 23.4 6.1
Shares (nos.) Nil Nil
Shares-linked instruments4 16,725,000 13,406,500
Other forms Nil Nil
Total amount of outstanding deferred remuneration and retained remuneration exposed ex-post explicit and/or implicit adjustments 23.4 6.1
Total amount of reductions during the year due to ex-post explicit adjustments Nil Nil
Total amount of reductions during the year due to ex-post implicit adjustments Nil Nil

1. Fixed pay includes basic salary, supplementary allowances, superannuation, contribution to provident fund and gratuity fund by the Bank. The amount contains part year payouts for a retired and a resigned WTD and a newly appointed WTD for fiscal 2017.

2. Variable Pay and Share-linked instruments for the year ended March 31, 2017 are subject to approval from RBI.

3. Excludes special grant of stock options approved by RBI in November 2015, aggregating to 5.8 million & grant of 1.0 million options for Vishakha Mulye.

4. The amount contains special grants, including grant to Vishakha Mulye.

Disclosures required with respect to Section 197(12) of the Companies Act, 2013

The ratio of the remuneration of each Director to the median employee's remuneration and such other details in terms of Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, and as amended from time to time.

(i) The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year;

Chanda Kochhar, Managing Director & CEO 112:1
N. S. Kannan 75:1
Vishakha Mulye 75:1
Vijay Chandok* 69:1
Anup Bagchi* 69:1

*The ratios are annualised as remuneration in the capacity of a Director is effective from July 28, 2016 for Vijay Chandok and from February 1, 2017 for Anup Bagchi.

Note: K. Ramkumar and Rajiv Sabharwal ceased to be directors during the financial year and are hence not included in the above table.

(ii) The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year;

The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer and Company Secretary ranged between 12.0% and 15.0%.

(iii) The percentage increase in the median remuneration of employees in the financial year;

The percentage increase in the median remuneration of employees in the financial year was around 12.0%.

(iv) The number of permanent employees on the rolls of company;

The number of employees, as mentioned in the section on ‘Management's Discussion & Analysis' is 82,841. Out of this, the employees on permanent rolls of the company is 81,129, including employees in overseas locations.

(v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration;

The average percentage increase made in the salaries of total employees other than the Key Managerial Personnel for fiscal 2017 was around 10.0%, while the average increase in the remuneration of the Key Managerial Personnel was in the range of 12.0% to 15.0%.

(vi) Affirmation that the remuneration is as per the remuneration policy of the company.

Yes

IV. Corporate Social Responsibility Committee

Terms of Reference

The functions of the Committee include review of corporate social responsibility (CSR) initiatives undertaken by the ICICI Group and the ICICI Foundation for Inclusive Growth, formulation and recommendation to the Board of a CSR Policy indicating the activities to be undertaken by the Company and recommendation of the amount of expenditure to be incurred on such activities, reviewing and recommending the annual CSR plan to the Board, making recommendations to the Board with respect to the CSR initiatives, policies and practices of the ICICI

Group, monitoring the CSR activities, implementation and compliance with the CSR Policy and reviewing and implementing, if required, any other matter related to CSR initiatives as recommended/suggested by RBI or any other body.

Composition

At March 31, 2017, the Corporate Social Responsibility Committee comprised three Directors including two independent Directors and the Managing Director & CEO and was chaired by M. S. Ramachandran, an independent Director. There were three Meetings of the Committee during the year. The details of the composition of the Committee and attendance at its Meetings are set out in the following table:

Name of Member Number of meetings attended
M. S. Ramachandran, Chairman 3/3
Tushaar Shah* 1/3
Alok Tandon (upto January 16, 2017) 0/3
Chanda Kochhar 3/3

* Participated in one Meeting through video-conference.

Upon completion of his term as a non-executive Director M. S. Ramachandran ceased to be the Chairman and Member of the Committee with effect from April 25, 2017. The Board at its Meeting held on April 6-7, 2017 reconstituted the Committee pursuant to which Dileep Choksi and Amit Agrawal were inducted as Members of the Committee with effect from April 6, 2017 and Tushaar Shah was appointed as the Chairman of the Committee with effect from April 25, 2017.

Details about the policy developed and implemented by the company on corporate social responsibility initiatives taken during the year

The CSR policy has been hosted on the website of the Company https://www.icicibank.com/managed-assets docs/about-us/ICICI-Bank-CSR-Policy.pdf.

The Annual Report on CSR activities is annexed herewith as Annexure E.

V. Credit Committee

Terms of Reference

The functions of the Committee include review of developments in key industrial sectors, major credit portfolios and approval of credit proposals as per the authorisation approved by the Board.

Composition

At March 31, 2017, the Credit Committee comprised three Directors including two independent Directors and the Managing Director & CEO and was chaired by the Managing Director & CEO. There were 28 Meetings of the Committee during the year. The details of the composition of the Committee and attendance at its Meetings are set out in the following table:

Name of Member Number of meetings attended
Chanda Kochhar, Chairperson 28/28
Homi Khusrokhan 26/28
M. S. Ramachandran* 28/28

* Participated in one Meeting through video-conference.

Upon completion of his term as a non-executive Director M. S. Ramachandran ceased to be the Member of the Committee with effect from April 25, 2017. The Board at its Meeting held on April 6-7, 2017, re-constituted the Committee with effect from April 6, 2017 pursuant to which M. K. Sharma was inducted as a Member as well as appointed as the Chairman of the Committee.

VI. Customer Service Committee

Terms of Reference

The functions of this Committee include review of customer service initiatives, overseeing the functioning of the Customer Service Council and evolving innovative measures for enhancing the quality of customer service and improvement in the overall satisfaction level of customers.

Composition

At March 31, 2017, the Customer Service Committee comprised three Directors including two independent Directors, and the Managing Director & CEO and was chaired by M. S. Ramachandran, an independent Director. There were six Meetings of the Committee during the year. The details of the composition of the Committee and attendance at its Meetings are set out in the following table:

Name of Member Number of meetings attended
M. S. Ramachandran, Chairman 6/6
V. Sridar* 5/6
Alok Tandon (upto January 16, 2017) 0/5
Chanda Kochhar 5/6

*Participated in one Meeting through tele-conference.

Upon completion of his term as a non-executive Director, M. S. Ramachandran ceased to be the Chairman and Member of the Committee with effect from April 25, 2017. Alok Tandon ceased to be a member of the Committee consequent to the withdrawal of his nomination as a Government Nominee Director effective January 16, 2017. The Board at its meeting held on April 6-7, 2017, re-constituted the Committee pursuant to which Tushaar Shah and Anup Bagchi were appointed as the Members of the Committee with effect from April 6, 2017 and V. Sridar was appointed as the Chairman of the Committee with effect from April 25, 2017.

VII. Fraud Monitoring Committee

Terms of Reference

The Committee monitors and reviews all the frauds involving an amount of Rs.10.0 million and above with the objective of identifying the systemic lacunae, if any, that facilitated perpetration of the fraud and put in place measures to rectify the same. The functions of this Committee include identifying the reasons for delay in detection, if any, and reporting to top management of the Bank and RBI on the same. The progress of investigation and recovery position is also monitored by the Committee. The Committee also ensures that staff accountability is examined at all levels in all the cases of frauds and action, if required, is completed quickly without loss of time. The role of the Committee is also to review the efficacy of the remedial action taken to prevent recurrence of frauds, such as strengthening of internal controls and put in place other measures as may be considered relevant to strengthen preventive measures against frauds.

Composition

At March 31, 2017, the Fraud Monitoring Committee comprised five Directors including four independent Directors and the Managing Director & CEO and was chaired by V. Sridar, an independent Director. There were seven Meetings of the Committee during the year. The details of the composition of the Committee and attendance at its Meetings are set out in the following table:

Name of Member Number of meetings attended
V. Sridar, Chairman# 6/7
Dileep Choksi 6/7
Homi Khusrokhan 6/7
V. K. Sharma 2/7
Chanda Kochhar 6/7
Rajiv Sabharwal (upto close of business hours on January 31, 2017) 3/7

# Participated in one Meeting through tele-conference and one through video- conference.

The Board at its meeting held on April 6-7, 2017, re-constituted the Committee and took note of the cessation of V. K. Sharma as a member of the committee owing to his increased commitment and approved the appointment of Anup Bagchi as a Member of the Committee with effect from April 6, 2017.

VIII. Information Technology Strategy Committee

Terms of Reference

The functions of the Committee are to approve strategy for Information Technology (IT) and policy documents, ensure that IT strategy is aligned with business strategy, review IT risks, ensure proper balance of IT investments for sustaining the Bank's growth, oversee the aggregate funding of IT at Bank-level, ascertain if the management has resources to ensure the proper management of IT risks and review contribution of IT to business.

Composition

At March 31, 2017, the IT Strategy Committee comprised three Directors including two independent Directors and the Managing Director & CEO and was chaired by Homi Khusrokhan, an independent Director. There were five Meetings of the Committee held during the year. The details of the composition of the Committee and attendance at its Meetings are set out in the following table:

Name of Member Number of meetings attended
Homi Khusrokhan, Chairman 5/5
V. Sridar* 5/5
Chanda Kochhar 5/5

*Participated in one Meeting through video-conference.

IX. Risk Committee

Terms of Reference

The functions of the Committee are to review ICICI Bank's risk management policies pertaining to credit, market, liquidity, operational, outsourcing, reputation risks, business continuity plan and disaster recovery plan. The functions of the Committee also include review of the Enterprise Risk Management (ERM) framework, risk appetite framework (RAF), stress testing framework, Internal Capital Adequacy Assessment Process (ICAAP) and framework for capital allocation; review of the status of Basel II and Basel III implementation, risk return profile of the Bank, risk dashboard covering various risks, outsourcing activities and the activities of the Asset Liability Management Committee. The Committee also has oversight on risks of subsidiaries covered under the Group Risk Management Framework.

Composition

At March 31, 2017, the Risk Committee comprised six Directors including five independent Directors, and the Managing Director & CEO and was chaired by M. K. Sharma, an independent Director. There were seven Meetings of the Committee during the year. The details of the composition of the Committee and attendance at its Meetings are set out in the following table:

Name of Member Number of meetings attended
M. K. Sharma, Chairman 7/7
Dileep Choksi 4/7
Homi Khusrokhan 6/7
V. K. Sharma 1/7
V. Sridar* 6/7
Alok Tandon (upto January 16, 2017) 0/5
Chanda Kochhar 7/7

*Participated in one Meeting through video-conference.

X. Stakeholders Relationship Committee

Terms of Reference

The functions and powers of the Committee include approval and rejection of transfer or transmission of equity shares, preference shares, bonds, debentures and securities, issue of duplicate certificates, allotment of shares and securities issued from time to time, review redressal and resolution of grievances of shareholders, debenture holders and other security holders, delegation of authority for opening and operation of bank accounts for payment of interest, dividend and redemption of securities and the listing of securities on stock exchanges.

Composition

At March 31, 2017, the Stakeholders Relationship Committee comprised three Directors including two independent Directors and was chaired by Homi Khusrokhan, an independent Director. There were four Meetings of the Committee during the year. The details of the composition of the Committee and attendance at its Meetings are set out in the following table:

Name of Member Number of meetings attended
Homi Khusrokhan, Chairman 3/4
V. Sridar* 4/4
N. S. Kannan 4/4

*Participated in one Meeting through video-conference.

P. Sanker, Senior General Manager (Legal) is the Company Secretary of the Bank and acts as the Compliance Officer of the Bank in accordance with the requirements of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. 103 shareholder complaints received in fiscal 2017 were processed. At March 31, 2017, no complaints were pending.

XI. Review Committee for Identification of Wilful Defaulters/Non Co-operative

Terms of Reference

The function of the Committee is to review the order of the Committee for identification of wilful defaulters/ non co-operative borrowers (a Committee comprising wholetime Directors and senior executives of the Bank to examine the facts and record the fact of the borrower being a wilful defaulter/non co-operative borrower) and confirm the same for the order to be considered final.

Composition

The Managing Director & CEO is the Chairperson of this Committee and any two independent Directors will comprise the remaining members. There was one Meeting of the Committee during the year and details of the same is set out in the following table:

Name of Member Number of meetings attended
Chanda Kochhar, Chairperson 1/1
Homi Khusrokhan 1/1
M. S. Ramachandran 1/1

XII.Other Committees

In addition to the above, the Board has from time to time constituted various committees, namely, Committee of Executive Directors, Executive Investment Committee, Asset Liability Management Committee, Committee for Identification of Wilful Defaulters/non co-operative borrowers, Committee of Senior Management (comprising certain wholetime Directors and executives) and Committee of Executives, Compliance Committee, Product & Process Approval Committee, Regional Committees for India and overseas operations, Outsourcing Committee, Operational Risk Management Committee and other Committees (all comprising executives). These committees are responsible for specific operational areas like asset liability management, approval/renewal of credit proposals, approval of products and processes and management of operational risk, under authorisation/supervision of the Board and its Committees.

XIII. General Body Meetings

The details of General Body Meetings held in the last three years are given below:

General Body Meeting Day, Date Time Venue
Twenty-Second AGM Monday, July 11, 2016 12:00 noon Sir Sayajirao Nagargruh, Vadodara
Twenty-First AGM Monday, June 29, 2015 12:00 noon Mahanagar Seva Sadan, Near GEB Colony, Old Padra Road, Akota,
Twentieth AGM Monday, June 30, 2014 1:00 p.m. Vadodara 390 020

The details of the Special Resolutions passed in the Annual General Meetings held in the previous three years are given below:

General Body Meeting Day, Date Resolution
Annual General Meeting Monday, July 11, 2016 Private placement of securities under Section 42 of the Companies Act, 2013
Annual General Meeting Monday, June 29, 2015 Private placement of securities under Section 42 of the Companies Act, 2013
Annual General Meeting Monday, June 30, 2014 1. Amendment to Articles of Association of the Bank pursuant to The Banking Laws (Amendment) Act, 2012
2. Borrowing limits under Section 180(1)(c) of the Companies Act, 2013
3. Private placement of securities under Section 42 of the Companies Act, 2013

Postal Ballot

During FY2017 no postal ballot notice was issued. In line with the provisions of Section 110 of the Companies Act, 2013, the Bank vide its Postal Ballot Notice dated May 5, 2017 is seeking approval of the Members for the following Special Resolutions: (i) Alteration of Articles of Association (ii) Amendment to the Employee Stock Option Scheme The Bank follows the procedure as prescribed under the Companies Act, 2013 read with Companies (Management and Administration), Rules, 2014, as amended from time to time and the Secretarial Standards. Members are provided the facility to cast their votes through electronic voting (e-voting) or through postal ballot. The Board of Directors of the Bank, appoints Scrutinizer(s) for conducting the postal ballot voting process. The Scrutinizer submits his report to the Chairman after the completion of the scrutiny of the postal ballots (including e-voting). Considering the combined results of the Postal Ballot via postal ballot forms and e-voting facility, the resolution is considered approved. The results are declared and communicated to the stock exchanges and displayed on the Bank's website www.icicibank.com.

XIV. Disclosures

1. There are no materially significant transactions with related parties i.e., directors, or relatives conflicting with the Bank's interests. The Bank has no promoter.

2. No penalties or strictures have been imposed on the Bank by any of the stock exchanges, the Securities & Exchange Board of India (SEBI) or any other statutory authority, for any non-compliance on any matter relating to capital markets, during the last three years.

3. In terms of the Whistle Blower Policy of the Bank, no employee of the Bank has been denied access to the Audit Committee.

XV. Means of Communication

It is ICICI Bank's belief that all stakeholders should have access to complete information regarding its position to enable them to accurately assess its future potential. ICICI Bank disseminates information on its operations and initiatives on a regular basis. ICICI Bank‘s website (www.icicibank.com) serves as a key awareness facility for all its stakeholders, allowing them to access information at their convenience. It provides comprehensive information on ICICI Bank's strategy, financial performance, operational performance and the latest ICICI Bank's investor relations personnel respond to specific queries and play a proactive role in disseminating information to both analysts and investors. In accordance with SEBI and Securities Exchange Commission (SEC) guidelines, all information which could have a material bearing on ICICI Bank's share price is released through leading domestic and global wire agencies. The information is also disseminated to the National Stock Exchange of India Limited (NSE), the Bombay Stock Exchange Limited (BSE), New York Stock Exchange (NYSE), Securities Exchange Commission (SEC), Singapore Stock Exchange, Japan Securities Dealers Association and SIX Swiss Exchange Ltd from time to time.

The financial and other information and the various compliances as required/prescribed under the Listing Regulations are filed electronically with NSE/BSE through NSE Electronic Application Processing (NEAP) System and through BSE Listing Centre and are also available on their respective websites in addition to the Bank's website. Additionally information is also disseminated to BSE/NSE where required by email or fax.

ICICI Bank's quarterly financial results are published either in the Financial Express (Mumbai, Pune, Ahmedabad, New Delhi, Lucknow, Chandigarh, Kolkata, Chennai, Bengaluru, Hyderabad and Kochi editions) or the Business Standard (Ahmedabad, Bengaluru, Bhubaneshwar, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Lucknow, Mumbai, New Delhi and Pune editions), and Vadodara Samachar (Vadodara). The financial results, official news releases, analyst call transcripts and presentations are also available on the Bank's website.

The Management's Discussion & Analysis forms part of the Annual Report.

General Shareholder Information

Annual General Meeting Day, Date & Time Venue
Twenty-Third AGM Friday, June 30, 2017 12:00 noon Professor Chandravadan Mehta Auditorium, General Education Centre, Opposite D.N. Hall Ground, The Maharaja Sayajirao University, Pratapgunj, Vadodara 390 002

 

Financial Year April 1, 2016 to March 31, 2017
Book Closure June 22, 2017 to June 24, 2017
Dividend Payment Date July 1, 2017

Listing of equity shares/ADSs/Bonds on Stock Exchanges

Stock Exchange Code for ICICI Bank
BSE Limited (BSE) (Equity) 532174
Phiroze Jeejeebhoy Towers, &
Dalal Street, Mumbai 400 001 6321741
National Stock Exchange of India Limited (NSE) (Equity) Exchange Plaza, Bandra-Kurla Complex Bandra (East), Mumbai 400 051 ICICIBANK
New York Stock Exchange (ADSs)2 11, Wall Street, New York, NY 10005, United States of America IBN

1. FII segment of BSE.

2. Each ADS of ICICI Bank represents two underlying equity shares.

The Bonds issued in domestic market comprised of privately placed bonds and also bonds issued via public issues which are listed on BSE/NSE.

ICICI Bank has paid annual listing fees for the relevant periods to BSE and NSE where its equity shares/bonds are listed and NYSE where its ADSs are listed.

Listing of other securities

The bonds issued overseas are issued either in public or private placement format. The listed bonds are traded on Singapore Exchange Securities Trading Limited, 2 Shenton Way #02-02, SGX Centre 1 Singapore 068804 or SIX

Swiss Exchange Ltd, Sales & Product Management, Selnaustrasse 30, CH-8021 Zurich or Tokyo Stock Exchange, 2-1 Nihombashi Kabutocho, Chuo-ku Tokyo 103-8220 Japan.

Market Price Information

The reported high and low closing prices and volume of equity shares of ICICI Bank traded during fiscal 2017 on BSE and NSE are set out in the following table:

Month BSE NSE Total Volume on
High Rs. Low Rs. Volume High Rs. Low Rs. Volume BSE and NSE
April 2016 254.10 220.15 25,410,291 254.05 220.30 426,467,139 451,877,430
May 2016 245.20 214.75 33,018,129 244.65 214.45 457,573,408 490,591,537
June 2016 257.60 231.05 21,692,145 257.65 230.95 310,507,526 332,199,671
July 2016 272.10 240.40 27,029,799 272.00 240.35 250,869,449 277,899,248
August 2016 257.70 239.30 25,899,934 258.00 239.35 312,782,813 338,682,747
September 2016 278.15 251.00 35,928,019 278.15 250.35 348,360,812 384,288,831
October 2016 289.10 241.20 34,369,153 289.25 241.15 385,243,401 419,612,554
November 2016 292.55 255.35 43,192,196 292.60 255.30 454,292,361 497,484,557
December 2016 268.35 248.40 20,744,718 268.45 248.15 230,907,955 251,652,673
January 2017 272.05 251.10 18,891,478 272.00 251.10 361,184,175 380,075,653
February 2017 290.35 276.40 28,492,952 290.30 276.35 344,530,054 373,023,006
March 2017 286.75 265.60 74,079,245 287.25 265.00 337,097,624 411,176,869
Fiscal 2017 292.55 214.75 388,748,059 292.60 214.45 4,219,816,717 4,608,564,776

The reported high and low closing prices and volume of ADRs of ICICI Bank traded during fiscal 2017 on the NYSE are given below:

Month High (USD) Low (USD) Number of ADS traded
April 2016 7.85 6.59 230,394,449
May 2016 7.19 6.38 244,522,998
June 2016 7.80 6.65 221,250,327
July 2016 8.01 7.20 191,163,670
August 2016 7.67 7.17 177,275,674
September 2016 8.37 7.41 194,469,484
October 2016 8.70 7.15 277,754,078
November 2016 8.62 7.46 207,498,832
December 2016 7.98 7.40 121,055,688
January 2017 8.10 7.45 156,884,115
February 2017 8.64 8.20 152,351,871
March 2017 8.78 8.15 182,984,082
Fiscal 2017 8.78 6.38 2,357,605,268

The performance of ICICI Bank equity shares relative to the S&P BSE Sensitive Index (Sensex), S&P BSE Bank Index (Bankex) and NYSE Financial Index during the period April 1, 2016 to March 31, 2017 is given in the following chart:

Share Transfer System

ICICI Bank's investor services are handled by 3i Infotech Limited (3i Infotech). 3i Infotech is a SEBI registered Category I - Registrar to an Issue & Share Transfer (R&T) Agent. 3i Infotech is an information technology company and in addition to R&T services, provides a wide range of technology & technology-enabled products and services. ICICI Bank's equity shares are traded mainly in dematerialised form. During the year, 1,464,735 equity shares of face value Rs.2/- each involving 3,031 certificates were dematerialised. At March 31, 2017, 99.50% of paid-up equity share capital (including equity shares represented by ADS constituting 25.30% of the paid-up equity share capital) are held in dematerialised form.

Physical share transfer requests are processed and the share certificates are returned normally within a period of seven days from the date of receipt, if the documents are correct, valid and complete in all respects.

The number of equity shares of ICICI Bank transferred during the last three years (excluding electronic transfer of shares in dematerialised form) is given below:

Fiscal 2015 Fiscal 2016 Fiscal 2017
Shares of face value Rs.10 Shares of face value Rs.2 Shares of face value Rs.2 Shares of face value Rs.2
Number of transfer deeds 706 564 1,114 414
Number of shares transferred 38,382 153,150 314,890 109,155

As required under Regulation 40(9) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, a certificate is obtained every six months Company Secretary that all transfers have been completed within the stipulated time. The certificates are filed with BSE and NSE.

In terms of SEBI circular no. D&CC/FITTC/CIR-16 dated December 31, 2002, as amended vide circular no. CIR/ MRD/DP/30/2010 dated September 6, 2010 an audit is conducted on a quarterly basis by a firm of Chartered Accountants, for the purpose of, inter alia, reconciliation of the total admitted equity share capital with the depositories and in the physical form with the total issued/paid up equity share capital of ICICI Bank. Certificates issued in this regard are placed before the Stakeholders Relationship Committee and filed with BSE and NSE, where the equity shares of ICICI Bank are listed.

Physical Share Disposal Scheme

With a view to mitigate the difficulties experienced by physical shareholders in disposing off their shares, ICICI

Bank, in the interest of investors holding shares in physical form (upto 250 shares of face value of Rs.2 each) has instituted a Physical Share Disposal Scheme. The scheme was started in November 2008 and continues to remain open. Interested shareholders may contact the R&T Agent, 3i Infotech Limited for further details.

Registrar and Transfer Agents

The Registrar and Transfer Agent of ICICI Bank is 3i Infotech Limited. Investor services related queries/requests/ complaints may be directed to R. C. D'souza at the address as under:

3i Infotech Limited

International Infotech Park

Tower 5, 3rd Floor

Vashi Railway Station Complex Vashi, Navi Mumbai 400 703 Maharashtra, India Tel No. : +91-22-7123 8021 Fax No. : +91-22-7123 8098 E-mail : investor@icicibank.com

Queries relating to the operational and financial performance of ICICI Bank may be addressed to:

Rakesh Jha/Anindya Banerjee/Sonal Bagaria

ICICI Bank Limited ICICI Bank Towers

Bandra-Kurla Complex Mumbai 400 051 Tel No. : +91-22-2653 6124 Fax No. : +91-22-2653 1175 E-mail : ir@icicibank.com

Debenture Trustees

Pursuant to Regulation 53 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the names and contact details of the debenture trustees for the public issue bonds and privately placed bonds of the Bank are given below:

Bank of Maharashtra Axis Trustee Services Limited IDBI Trusteeship Services Limited
Legal Dept.Head Office, Axis House, Asian Building, Ground Floor,
Lokmangal, "1501", Bombay Dyeing Mill Compound, 17, R Kamani Marg,
Shivaji Nagar, Pandurang Budhkar Marg, Ballard Estate,
Pune - 411 005 Worli, Mumbai - 400 025 Mumbai 400 001
Tel. No: +91-020-2553 6256 Tel No: +91- 22- 62260050/54 Tel No: +91 -22 - 4080 7001
bomcolaw@mahabank.com debenturetrustee@axistrustee.com ajit.guruji@idbitrustee.com

The details are available on the website of the Bank at the link http://www.icicibank.com/Personal-Banking/investments/icici-bank-bonds/index.page.

Information on Shareholding

Shareholding pattern of ICICI Bank at March 31, 2017

Shareholder Category Shares % holding
Deutsche Bank Trust Company Americas (Depositary for ADS holders) 1,473,304,334 25.30
FIIs, NRIs, Foreign Banks, Foreign Companies, OCBs and Foreign Nationals 2,066,832,356 35.48
Insurance Companies 886,918,475 15.23
Bodies Corporate (including Government Companies) 145,843,449 2.51
Banks & Financial Institutions 5,913,981 0.10
Mutual Funds 871,787,797 14.97
Individuals, HUF and Trusts 339,786,970 5.83
NBFC Registered with RBI 1,122,769 0.02
Provident Fund / Pension Fund 32,812,592 0.56
Alternative Investment Fund 153,412 0.00
Total 5,824,476,135 100.00

Shareholders of ICICI Bank with more than one percent holding at March 31, 2017

Name of the Shareholder No. of shares % to total no. of shares
Deutsche Bank Trust Company Americas (Depositary for ADS holders) 1,473,304,334 25.30
Life Insurance Corporation of India 608,927,224 10.45
Dodge and Cox International Stock Fund 364,368,485 6.26
Government of Singapore 63,125,358 1.08
Government Pension Fund Global 59,371,058 1.02
Total 2,569,096,459 44.11

Distribution of shareholding of ICICI Bank at March 31, 2017

Range – Shares No. of Folios % No. of Shares %
Upto 1,000 478,953 51.02 21,024,666 0.36
1,001 5,000 329,141 35.06 88,889,355 1.53
5,001 10,000 77,377 8.24 56,232,091 0.96
10,001 50,000 45,941 4.89 89,096,647 1.53
50,001 & above 7,414 0.79 5,569,233,376 95.62
Total 938,826 100.00 5,824,476,135 100.00

Disclosure with respect to shares lying in suspense account

The Bank had 100,950 equity shares held by 508 shareholders lying in suspense account at the beginning of the fiscal 2017. The Bank has been transferring the shares lying unclaimed to the eligible shareholders as and when the request for the same has been received after proper verification. During the year, the Bank had received requests from 16 shareholders holding 2,815 shares for claiming these shares out of which 1,775 shares held by 10 shareholders were transferred from the suspense account. As on March 31, 2017, 99,175 shares held by 498 shareholders remained unclaimed in the suspense account.

The voting rights on the shares lying in suspense account are frozen till the rightful owner of such shares claims the shares.

Outstanding GDRs/ADSs/Warrants or any Convertible Debentures, conversion date and likely impact on equity

ICICI Bank has 736.65 million ADS (equivalent to 1,473.30 million equity shares) outstanding, which constituted 25.30% of ICICI Bank's total equity capital at March 31, 2017. Currently, there are no convertible debentures outstanding.

Commodity price risk or foreign exchange risk and hedging activities

The foreign exchange risk position including bullion is managed within the Rs.10.00 billion net overnight open position (NOOP) limit approved by the Board of Directors. The Bank does not undertake positions in commodities. The Bank primarily has floating rate linked assets. Wholesale liability raising takes place in US dollar or other currencies via bond issuances, bilateral loans, syndicated/club loans as well as refinance from Agencies (ECA)whichmaybe fixedrate or floating rate linked. In case of fixed rate fund raising in US dollars, the interest rate risk is hedged via interest rate swaps wherein the Bank moves to a floating rate index in order to match the asset profile. In case of fund raising in non US dollar currencies, the foreign exchange risk is hedged via foreign exchange swaps or currency interest rate swaps.

Plant Locations – Not applicable Address for Correspondence

P. Sanker

Senior General Manager (Legal) & Company Secretary or Ranganath Athreya

General Manager & Joint Company Secretary

ICICI Bank Limited ICICI Bank Towers

Bandra-Kurla Complex Mumbai 400 051 Tel No. : +91-22-2653 8900 Fax No. : +91-22-2653 1230

E-mail : companysecretary@icicibank.com

The Bank is in compliance with requirements specified in Regulations 17 to 27 and clauses regulation (2) of Regulation 46 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Bank has also complied with the discretionary requirements such as maintaining a separate office for the Chairman at the Bank's expense, ensuring financial statements with unmodifiedaudit opinion, separation of posts of Chairman and Chief Executive Officer and reporting of internal auditor directly to the Audit Committee.

ANALYSIS OF CUSTOMER COMPLAINTS

a) Customer complaints in fiscal 2017

No. of complaints pending at the beginning of the year 3,400
No. of complaints received during the year 217,473
No. of complaints redressed during the year 216,601
No. of complaints pending at the end of the year 4,272

Note: The above does not include complaint redressed within 1 working day.

b) Awards passed by the Banking Ombudsman in fiscal 2017

Number of unimplemented awards at the beginning of the year Nil
Number of awards passed by the Banking Ombudsman during the year Nil
Number of awards implemented during the year Nil
Number of unimplemented awards at the end of the year Nil

COMPLIANCE CERTIFICATE OF THE AUDITORS

ICICI Bank has annexed to this report, a certificateobtained from the statutory auditors, M/s B S R & Co. LLP, Chartered Accountants, regarding compliance of conditions of Corporate Governance as stipulated in Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

EMPLOYEE STOCK OPTION SCHEME

The Bank has an Employee Stock Option Scheme (ESOS/Scheme) which was fiscal2000 to enable the instituted in employees and wholetime Directors of ICICI Bank and its subsidiaries to participate in future growth and financial success of the Bank. The ESOS aims at achieving the twin objectives of (i) aligning employee interest to that of the shareholders; and (ii) retention of talent. Through employee stock option grants, the Bank seeks to foster a culture of long-term sustainable value creation. The Scheme is in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2014 and the below disclosures are available at www.icicibank.com/aboutus/annual.page. Pursuant to SEBI (Share Based Employee 2014, options are granted by the Board Governance, Remuneration & Nomination Committee Benefits) (BGRNC/Committee) and noted by the Board.

The Scheme was initially approved by the Members at their meeting held on February 21, 2000 and thereafter further amended through resolutions at the General Meetings held on September 20, 2004 and June 25, 2012 and vide a postal ballot resolution passed on April 22, 2016. The Bank has upto May 3, 2017 granted 446.46 million stock options from time to time aggregating to 7.66% of the issued equity capital of the Bank at May 3, 2017. As per the ESOS, as amended from time to time, the maximum number of options granted to any employee/Director in a year is limited to 0.05% of ICICI Bank's issued equity shares at the time of the grant, and the aggregate of all such options is limited to 10% of ICICI Bank's issued equity shares on the date of the grant (equivalent to 582.56 million shares of face value Rs.2 each at May 3, 2017). Options granted after April 1, 2014 vest in a graded manner over a three year period, with 30%, 30% and 40% of the grant vesting in each year, commencing from the end of 12 months from the date of the grant, other than the following: 250,000 options granted in April 2014, 50% vested on April 30, 2017 and balance 50% would vest on April 30, 2018 Options granted in September 2015 would vest in equal proportions on April 30, 2018 and April 30, 2019. The unvested options would lapse upon termination of employment due to retirement (including pursuant to early/voluntary retirement scheme) Options granted prior to April 1, 2014 vested in a graded manner over a four-year period, with 20%, 20%, 30% and 30% of the grants vesting in each year commencing from the end of 12 months from the date of grant, other than the following: Options granted in April 2009 vested in a graded manner over a five year period with 20%, 20%, 30% and 30% of the grant vesting in each year, commencing from the end of 24 months from the date of the grant The grant approved by the Board at its Meeting held on October 29, 2010 (for which RBI approval for grant to wholetime Directors was received in January 2011), vested 50% on April 30, 2014 and the balance 50% vested on April 30, 2015 Options granted in September 2011 vested in a graded manner over a five year period with 15%, 20%, 20% and 45% of the grant vesting in each year, commencing from end of 24 months from the date of grant The price for options granted (except for grants approved on October 29, 2010 where the grant price was the average closing price of the ICICI Bank stock on the stock exchange during the six months upto October 28, 2010) is equal to the closing price on the stock exchange which recorded the highest trading volume preceding the date of grant of options in line with the SEBI regulations.

The BGRNC at its Meeting held on July 11, 2016 amended the scheme to state that in the event of an Participant's employment terminating due to retirement, the Options shall vest by such period as stipulated in the Award Confirmation, subject to the Participant demonstrating compliance with the Code of Conduct including Undertaking of Continued Good Conduct with a proviso that at the sole discretion of the Committee, it may allow the whole of the options or part thereof to vest at one time or at various points of time.

Further the Committee at its meeting held on May 3, 2017 approved the amendment to the definitionof Exercise Period as given below: "Exercise Period means the period commencing from the date of vesting and will expire on completion of such period not exceeding ten years from the date of vesting of Options as may be determined by the Board Governance, Remuneration & Nomination Committee ("BGRNC") for each grant".

The above amendment was also approved by the Board at its Meeting held on the same day subject to the approval of the shareholders. The amendment is intended to cover only future grants to be made and would come into effect only after approval by Members and will not cover grants already made. There is no incremental Exercise Period being granted or proposed. The present definition provides for a fixed term Exercise Period of ten years and does not allow flexibility to align the Exercise Period of future grants to reflect the time horizon of short term and long term strategies of the Bank. The amendment would enable grants to be made with appropriate Exercise Period(s) for each grant after vesting to better align (i) employee efforts to the articulated strategy; and (ii) the compensation payout schedules for senior management to the time horizon of risks. Approval of the shareholders for the above amendment is being sought through postal ballot notice dated May 5, 2017.

The BGRNC at its Meeting held on May 3, 2017 also approved a grant of approximately 33 million options for fiscal 2017 to eligible employees and wholetime Directors of ICICI Bank and its subsidiaries (options granted to wholetime Directors of ICICI Bank being subject to RBI approval). Each option confers on the employee a right to apply for one equity share of face value of Rs.2 of ICICI Bank at Rs.275.60 which was closing price on the stock exchange which recorded the highest trading volume in ICICI Bank shares on May 2, 2017. The grant price iscalculated as per the SEBI regulations.

Particulars of options granted by ICICI Bank upto May 3, 2017 are given below:

Options granted till May 3, 2017 (excluding options forfeited/lapsed) 446,459,925
Options forfeited/lapsed 71,626,600
Options vested 364,814,425
Options exercised 210,565,925
Total number of options in force 235,894,000
Number of shares allotted pursuant to exercise of options 210,565,925
Extinguishment or modification of options Nil
Amount realised by exercise of options (Rs.) 16,661,600,441

Note:

For details on option movement during the year refer Financials-Schedule 18-Employee Stock Option Scheme. 31,107,650 options vested during FY2017 and Rs.1,772,579,808 was realised by exercise of options during FY2017.

The following Key Managerial Personnel (other than wholetime Directors) and Senior Management Personnel (SMP) were granted ESOPs upto a maximum of 332,500 options, aggregating to 4,156,000 in May 2017. Additionally 850,000 joining ESOPs were granted to a SMP.

Sr. No. Name Grade
1 Rakesh Jha Group Executive (Chief Financial Officer)
2 B Madhivanan Group Executive
3 Balachander Prasanna Group Executive
4 Sanjay Chougule Senior General Manager
5 Anita Pai Senior General Manager
6 G Srinivas Senior General Manager
7 T K Srirang Senior General Manager
8 Kumar Ashish Senior General Manager
9 Anuj Bhargava Senior General Manager
10 Prathit Bhobe Senior General Manager
11 Partha Dey Senior General Manager
12 Sujit Ganguli Senior General Manager
13 Ajay Gupta Senior General Manager
14 Anirudh Kamani Senior General Manager
15 Anil Kaul Senior General Manager
16 Loknath Mishra Senior General Manager
17 Narayanan N R Senior General Manager
18 Amit Palta Senior General Manager
19 Murali Ramakrishnan Senior General Manager
20 Kusal Roy Senior General Manager
21 Anup Kumar Saha Senior General Manager
22 Avijit Saha Senior General Manager
23 Sanker Parameswaran Senior General Manager (Company Secretary)
24 Supritha Shirish Shetty Senior General Manager
25 Saurabh Singh Senior General Manager

No employee was granted options during any one year equal to or exceeding 0.05% of the issued equity shares of ICICI Bank at the time of the grant.

The diluted earnings per share (EPS) pursuant to issue of shares on exercise of options calculated in accordance with AS-20 was Rs.16.77 in fiscal 2017 compared to basic EPS ofRs.16.84. Based on the intrinsic value of options, no compensation cost was recognised during fiscal 2017. However, if the Bank had used the fair value of options based on the binomial tree model, compensation cost in fiscal 2017 would have been higher byRs.5.11 billion including additional cost of Rs.1.39 billion due to change in exercise period (approved by shareholders vide postal ballot on April 22, 2016) and proforma profit after tax would have been Rs.92.90 billion. Additional cost of Rs.1.39 billion at the date of modification reflects the difference between fair value of option calculated as per revised exercise period and fair value of option calculated as per original exercise period. On a proforma basis, the Bank's basic and diluted earnings per share would have beenRs.15.97 and Rs.15.90 respectively. The key assumptions used to estimate the fair value of options granted during fiscal 2017 are given below:

Risk-free interest rate 7.43% to 7.77%
Expected life 3.89 to 5.89 years
Expected volatility 32.03% to 33.31%
Expected dividend yield 2.04% to 2.15%

The weighted average fair value of options granted during fiscal 2017 is Rs.84.39 (Rs.100.50 during fiscal 2016).

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

The Bank has undertaken various initiatives for energy conservation at its premises, further details are given under Principle 6 of Section E of the Business Responsibility Report. The Bank has used information technology extensively in its operations, for more details please refer the section on Information Technology under Business Overview.

GREEN INITIATIVES IN CORPORATE GOVERNANCE

In line with the 'Green Initiative' since the last five years, the Bank has effected electronic delivery of Notice of Annual General Meeting and Annual Report to those Members whose e-mail IDs were registered with the respective Depository Participants and downloaded from the depositories viz. National Securities Depository Limited/Central Depository Services (India) Limited. The Companies Act, 2013 and the underlying rules as well as Regulation 36 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, permit the dissemination offinancial statements and annual report in electronic mode to the Members. Your Directors are thankful to the Members for actively participating in the Green Initiative and seek your continued support for implementation of the green initiative.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm:

1. that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; 2. that they have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit of the Bank for thatperiod; 3. that they have taken proper and sufficientcare for the maintenance of adequate accounting records, in accordance with the provisions of the Banking Regulation Act, 1949 and the Companies Act, 2013 for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

4. that they have prepared the annual accounts on a going concern basis;

5. that they have laid down internal financial controls to be followed by the Bank and that such internal financial controls are adequate and were operating effectively; and 6. that they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ACKNOWLEDGEMENTS

ICICI Bank is grateful to the Government of India, Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority of India and overseas regulators for their continued co-operation, support and guidance. ICICI Bank wishes to thank its investors, the domestic and international banking community, rating agencies and stock exchanges for their support.

ICICI Bank would like to take this opportunity to express sincere thanks to its valued clients and customers for their continued patronage. The Directors express their deep sense of appreciation to all the employees, whose outstanding professionalism, commitment and initiative has made the organisation's growth and success possible and continues to drive its progress. Finally, the Directors wish to express their gratitude to the Members for their trust and support.

For and on behalf of the Board
M. K. Sharma
May 15, 2017 Chairman

Compliance with the Group Code of Business Conduct and Ethics

I confirm that all Directors and members of the senior management have affirmed compliance with Group Code of Business Conduct and Ethics for the year ended March 31, 2017.

Chanda Kochhar

Managing Director & CEO

May 15, 2017

ANNEXURE A

Performance and financial position of subsidiaries and associates of the Bank as on March 31, 2017

Rs.in million

Net assets1

Share in profit or loss

Name of the entity Parent % of total net assets Amount % of total net profit Amount
ICICI Bank Limited 95.5% 999,510.7 96.2% 98,010.9
Subsidiaries
Indian
ICICI Securities Primary Dealership Limited 0.9% 9,435.2 4.0% 4,116.0
ICICI Securities Limited 0.5% 4,850.5 3.3% 3,376.1
ICICI Home Finance Company Limited 1.5% 16,071.7 1.8% 1,832.6
ICICI Trusteeship Services Limited 0.0%2 5.9 0.0%2 0.6
ICICI Investment Management Company Limited 0.0%2 108.9 (0.0%)2 (6.6)
ICICI Venture Funds Management Company Limited 0.2% 2,068.3 0.1% 92.7
ICICI Prudential Life Insurance Company Limited 6.1% 64,080.4 16.5% 16,822.3
ICICI Lombard General Insurance Company Limited 4.2% 44,025.4 6.9% 7,018.8
ICICI Prudential Trust Limited 0.0%2 13.0 0.0%2 0.5
ICICI Prudential Asset Management Company Limited 0.7% 7,331.7 4.7% 4,804.7
ICICI Prudential Pension Funds Management Company Limited 0.0%2 269.9 (0.0%)2 (5.7)
Foreign
ICICI Bank UK PLC 3.3% 34,580.0 (1.1%) (1,078.8)
ICICI Bank Canada 2.9% 30,459.7 (1.7%) (1,686.4)
ICICI International Limited 0.0%2 87.7 (0.0%)2 (4.2)
ICICI Securities Holdings Inc. 0.0%2 127.0 (0.0%)2 (0.0)2
ICICI Securities Inc. 0.0%2 135.9 0.0%2 10.2
Other consolidated entities
Indian
ICICI Strategic Investments Fund 0.0%2 227.2 0.1% 95.5
Foreign
NIL
Minority interests (4.6%) (48,653.1) (11.3%) (11,519.4)
Associates
Indian
Fino PayTech Limited3 (0.0%)2 (14.9)
I-Process Services (India) Private Limited (0.0%)2 (5.0)
NIIT Institute of Finance Banking and Insurance Training Limited (0.0%)2 (4.2)
ICICI Merchant Services Private Limited
India Infradebt Limited 0.1% 149.1
India Advantage Fund III (0.1%) (91.0)
India Advantage Fund IV (0.1%) (75.8)
Foreign
NIL
Joint Ventures
NIL
Inter-company adjustments (11.2%) (118,416.0) (19.4%) (19,954.2)
Total 100.0% 1,046,320.0 100.0% 101,883.8

1. Total assets minus total liabilities.

2. Insignificant.

3. FINO PayTech Limited ceased to be an associate of the Bank effective January 5, 2017.

ANNEXURE C

FORM NO. AOC-2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014) Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm's length transactions under third proviso thereto

1. Details of contracts or arrangements or transactions not at arm's length basis

Nil

2. Details of material contracts or arrangement or transactions at arm's length basis

Sr. No. Name of the related party Nature of relationship Nature of contracts/ transactions Duration of contracts Salient terms of contracts/ transactions Rs.in million
1 ICICI Lombard General Insurance Company Limited Subsidiary Term deposits placed with the Bank Various maturities Interest at applicable coupon rates 13,480.0
India Infradebt Limited Associate 3,100.0
ICICI Home Finance Company Limited Subsidiary 750.0
2 ICICI Prudential Life Insurance Company Limited Subsidiary Investment in bonds/ debentures of ICICI Bank 7 years Issued in line with prevailing market rates 3,250.0
ICICI Bank UK PLC Subsidiary 3 years 1,018.9
ICICI Securities Primary Dealership Limited Subsidiary 10 years 750.0
3 India Infradebt Limited Associate Investment in bonds/ debentures of related party 5 years Issued in line with prevailing market rates 3,950.0
4 ICICI Securities Primary Dealership Limited Subsidiary Short-term lending by the Bank Various maturities Interest at competitive market rates 183,150.0
5 ICICI Bank UK PLC Subsidiary Guarantee given by the Bank Various maturities Commission on guarantee at negotiated rates 1,916.7
6 ICICI Bank UK PLC Subsidiary Standby letters of credit given by the Bank Various maturities Commission on guarantee at negotiated rates 2,131.7
7 ICICI Prudential Life Insurance Company Limited Subsidiary Purchases of investment securities of third parties At market price 3,028.8
ICICI Securities Primary Dealership Limited Subsidiary 1,818.0
8 ICICI Prudential Life Insurance Company Limited Subsidiary Sale of investment securities of third parties At market price 7,524.2
ICICI Securities Primary Dealership Limited Subsidiary 1,499.0
ICICI Lombard General Insurance Company Limited Subsidiary 1,449.4
9 India Infradebt Limited Associate Investment in equity shares of related party In line with terms of right issue 1,829.5
10 ICICI Bank UK PLC Subsidiary Risk participation 5 years At market competitive rates 2,075.2
11 ICICI Securities Primary Dealership Limited Subsidiary Principal amounts of derivatives such as swaps and forwards Various maturities At market rates 220,250.0
ICICI Bank UK PLC Subsidiary contracts 122,828.8
ICICI Securities Limited Subsidiary 11,723.2
ICICI Prudential Life Insurance Company Limited Subsidiary 2,178.5
ICICI Prudential Asset Management Company Limited Subsidiary 814.9
12 ICICI Bank UK PLC Subsidiary Current account deposits by the Bank Outstanding balance at March 31, 2017 in current account deposits maintained for normal banking transactions 522.1
13 Life Insurance Corporation of India India Infradebt Limited Others Current account deposits with the Bank Outstanding balance at March 31, 2017 in current account deposits maintained for normal banking transactions 6,256.3
Associate 2,006.4
ICICI Prudential Life Insurance Company Limited Subsidiary 1,502.3
ICICI Lombard General Insurance Company Limited Subsidiary 1,121.4
ICICI Securities Limited Subsidiary 1,030.4
14 Life Insurance Corporation of India Others Interest expenses Interest on bonds at applicable rates 17,990.8
15 ICICI Home Finance Company Limited Subsidiary Interest income Interest on loans and advances at applicable rates 557.5
16 ICICI Lombard General Insurance Company Limited Subsidiary Insurance premium paid Staff welfare insurance at market competitive rates 860.8
17 ICICI Prudential Life Insurance Company Limited Subsidiary Administration, publicity and marketing support income 6 years Charges for publicity and advertisements at branches and ATMs 5,726.9
18 ICICI Prudential Life Insurance Company Limited Subsidiary Commission income on insurance products On–going Commission for corporate agency services to solicit and procure the sale and distribution of the policies 3,902.2
ICICI Lombard General Insurance Company Limited Subsidiary 3 years 877.7
19 I-Process Services (India) Private Limited Associate Expenses towards service provider arrangements 1 year Outsourcing of services and resources 3,572.8
ICICI Merchant Services Private Limited Associate 10 years Merchant management fee 2,221.0
20 ICICI Prudential Life Insurance Company Limited Subsidiary Reimbursement of expenses paid On actual basis 509.9

ANNEXURE F

Dividend distribution policy

1. Introduction

ICICI Bank Limited (the Bank or ICICI Bank) is a public company incorporated under the Companies Act, 1956 and licensed as a bank under the Banking Regulation Act, 1949. The Bank has been making profits since inception and has been paying equity share dividends in accordance with the guidelines of Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI), Companies Act, 1956, Companies Act, 2013 and Banking Regulation Act, 1949. This policy documents the guidelines on payment of dividends, and sets out the key considerations for arriving at the dividend payment decision. The Board will have the flexibility to determine the level of dividend based on the considerations laid out in the policy and other relevant developments.

2. Regulatory framework

The Bank while proposing equity share dividend will ensure compliance with the RBI guidelines relating to declaration of dividend, capital conservation requirements under guidelines on Basel III norms issued by RBI, provisions of the Banking Regulation Act, 1949, the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015, provisions of the Companies Act, 2013 and guidelines provided under the section titled "Dividends" in the Articles of Association (AOA) of the Bank.

3. Approval process

The Board of Directors of the Bank would take into account the following aspects while deciding on the proposal for dividend: a) profitability and key financial metrics; b) the interim dividend paid, if any; c) the auditors' qualifications pertaining to the statement of accounts, if any; d) whether dividend/coupon payments for non-equity capital instruments (including preference shares) have been made; e) the Bank's capital position and requirements as per Internal Capital Adequacy Assessment Process (ICAAP) projections and regulatory norms; and f) the applicable regulatory requirements The dividend decision would be subject to consideration of anyother relevant factors, including, for example: External factors including state of the domestic and global economy, capital market conditions and dividend policy of competitors; Tax implications including applicability and rate of dividend distribution tax; Shareholder expectations The decision regarding dividend shall be taken only by the Board at its Meeting and not by a Committee of the Board or by way of a Resolution passed by circulation.

Final dividend shall be paid only after approval at an Annual General Meeting (AGM) of the Bank. Shareholder approval is not required for payment of interim dividend.

4. Utilisation of retained earnings

The Bank would utilise the retained earnings for general corporate purposes, including organic and inorganic growth, investments in subsidiaries/associates and/or appropriations/drawdowns as per the regulatory framework. The Board may decide to employ the retained earnings in ensuring maintenance of an optimal level of capital adequacy, meeting the Bank's future growth/expansion plans, other strategic purposes and/or distribution to shareholders, subject to applicable regulations.

5. Parameters for various classes of shares

Currently, the Bank has only one class of equity shareholders. In the absence of any other class of equity shares and/or equity shares with differential voting rights, the entire distributable profit for the purpose of declaration of dividend is considered for the equity shareholders. The Bank has preference shares on which a fixed rate of dividend is appropriated out of profits.

6. Circumstances under which the shareholders may or may not expect dividend

The Board of the Bank may vary the level of dividend or not recommend any dividend based on the regulatory eligibility criteria for recommendation of dividend, including any regulatory restriction placed on the Bank on declaration of dividend. There may also be obligations that the Bank could have undertaken under the terms of perpetual non-cumulative preference shares or debt capital instruments pursuant to applicable regulations which might prohibit the Bank from declaring dividend in certain circumstances.

The Board of the Bank may vary the level of dividend or not recommend any dividend based on the capital and reserves position of the Bank. The Board may recommend lower or no dividends if it is of the view that there is a need to conserve capital. The Board may recommend higher dividends, subject to applicable regulations, if the capital and reserves position supports a higher distribution to the shareholders.

7. Review

The dividend policy of the Bank would be reviewed annually, or earlier if material changes take place in the applicable regulations.

AUDITOR'S CERTIFICATE ON CORPORATE GOVERNANCE

To

The Members of ICICI Bank Limited

We have examined the compliance of conditions of Corporate Governance by ICICI Bank Limited (the ‘Bank') for the year ended 31 March 2017, as per regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of regulation 46 and paragraphs C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the ‘Listing Regulations').

The compliance of conditions of Corporate Governance is the responsibility of management. Our examination was limited to procedures and implementation thereof, adopted by the Bank for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Bank.

We conducted our examination in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) issued by the Institute of Chartered Accountants of India (the ‘ICAI'). The Guidance Note requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI. We have complied with the relevant applicable requirements of the Standard on Quality Control (‘SQC') 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Bank has compliedwiththeconditionsofCorporateGovernanceasspecifiedin regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of regulation 46 and paragraphs C, D and E of Schedule V of the Listing Regulations, as applicable. We state that such compliance is neither an assurance as to the future viability of the Bank nor as to the efficiency effectiveness with which management has conducted the affairs of the Bank.

Restrictions on use

This certificate is issued solely for the purpose of complying with the aforesaid Regulations and may not any other purpose.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Mumbai Partner
May 15, 2017 Membership No: 113156

   

SEBI REGISTRATION NO:NSE CM INB 230696230       NSE F&O:INF 230696230      BSE CM:INB 010696236          MCX MEMBERSHIP ID:12535 MAPIN NO:10014845        CDSL : IN-DP-CDSL-291-2005
MERCHANT BANKING REGISTRATION NO : NM000011575
Terms of the Site  I  Privacy Policy  I  Disclaimer  I  Broker Norms  I  Investor Complaint  I  Investor Relations  I  Site Map
INTERNAL CONTROL POLICY  I  AML POLICY  I  RMS POLICY  I  POLICIES & PROCEDURES  I  CLIENT ACCEPTANCE POLICY   I  CLIENT REGISTRATION FORM  I  DOCUMENTS IN VERNACULAR LANGUAGES
BSE  I  NSE  I  CDSL  I  SEBI  I  MCX  I  NCDEX
© 2010 SHARE MART. All rights reserved Designed, Developed and Content provided by C-MOTS Infotech ( ISO 9001:2008 certified )