Investor Presentation

January 28, 2000

Agenda

 Strategic Focus
 e-enabling ICICI
 Operational Performance
 Financial Performance
 Asset Composition and Quality
 Capital and Shareholders
ICICI - A Paradigm Shift from a
development banking institution operating on
a single product portfolio
We have capitalised on market opportunities to stretch the
boundaries of our business

We believe that the foremost ingredient for success has been

our ability to continuously evolve both organisational
structure and product offerings, thereby remaining on the
cutting edge of financial services
Our transformation has been driven by the
urge to enhance shareholder value
 Shareholder value is our key performance metric

 Allows for more transparent and accurate trade-offs

 Create value in the ICICI Group wherever appropriate

 Regulation has been a key driver in deciding the most

optimum structure for creating value
 ICICI: Strategic Transformation Matrix
Specialised Client
Corporate Project Structured B2B Solutions
Industry Relationship
Banking Finance Products Group
Groups Groups

Credit Risk Centralised & Proactive

Risk Mgmt/ Special Asset US GAAP
Unit and Independent Risk Workout of
Asset Quality Mgmt Group Provisioning
Internal Audit Mgmt NPLs

Consumer
Retail ICICI “Power Pay” Safety Bonds Credit Cards
Asset Finance
Bank B2C

Networked
Technology ICICI InfoTech Internet Banking Data Warehousing dot.com
Presence

Separation of
Corporate Independent Audit Credit Governance
Executive
Governance Board Committee Committee Committee
Mgmt & Board

Before 1996 2000

 The Present Repositioning...

Group

dot.com Technology
Wholesale Retail
Ventures & e-Platforms Backbone &
Banking Banking
Investments Services
•Corporate •Accounts •Web Trade •Payment •Financial
Finance •Deposits •Housing portal Gateway vertical
•Project •Bonds •Other retail •Financial •Global
Finance •Credit Cards finance portals vertical transaction
•Commercial •Mortgages •Investments •Switch processing
Banking •Auto loans - Portals •Web
•Investment •Personal - Software technologies
Banking Loans - Networking
•Venture •Depository - Media
Capital
Significant value in present structure...
 ICICI is clearly India’s largest hub for e-commerce
businesses and related technology initiatives
 Dot.com proposition in every conceivable space in the
environment
 Ownership : 100% subsidiary or principal sponsor
 Leveraging existing strengths and resources in each venture
 Full value extraction will be a function of
 Changes in Regulation
 Market response to current initiatives
 Ability to issue instruments like tracking stocks
The Investment Proposition...
 A stable, conservatively valued wholesale bank
 Acts as a self-sustaining cash generator
 Provides the launching pad for new business growth
 A “free” option on
 the rapidly growing retail banking franchise
 the investment bank with a strong fee earning capacity and
 enormous upside from existing dot.com and technology
investments
 The possibility of a migration towards a more “tech-stock”
valuation as the multitude e-commerce initiatives start to
deliver value
Agenda

 Strategic Focus
 e-enabling ICICI
 Operational Performance
 Financial Performance
 Asset Composition and Quality
 Capital and Shareholders
A synergistic approach
Web enabling existing products and services
•Leverage existing domain

Invest New Opportunities

•Start-ups in dot.com world •e-Products and Services
•Technology companies •e-Infrastructure

Partnerships to add value

Enhance business value by web enabling
existing products and services
 Internet based payment module “ Payments” for
purchasers and sellers to effect payments online

 Tie-up with a Compaq-led consortium for setting up a

payment gateway to facilitate secured online B2C and B2B
e-commerce transactions
Creating a closed user group among
existing clients
 Path breaking B2B web based solution for supply chain
management
 Links corporate clients together with their vendors and
distributors in a closed loop
 Facilitating ease of funds transfer
 Superior inventory management
 1000 participants presently in a closed e-commerce
group

End to end financial solutions across entire

client spectrum
Leveraging Internet for new opportunities in
the financial services domain...

 The first end-to-end integrated web

based trading service in India
 Unique 3-in-1 capability would allow the customer
seamless electronic trading
 Brokerage, Depository and online banking account
 Web space complemented by 75 ICICI Cyber points (thin
branches) and 81 bank branches
 Demo site launched on January 13, 2000
 More than 100,000 page views and 2,000 registrations
within 24 hours of launch
Other initiatives...

 India’s first credit card with Internet access launched

 Statements, payment details, outstandings, due date,
instructions and application on the Internet
 Pan-India web based bills payment system
 Housing portal being launched to facilitate the entire
property and housing requirements of consumers
Building Retail Technology Infrastructure
 Nation-wide data communications network
 Fully-integrated multi-product and multi-channel retail
technology architecture
 Data-processing capabilities for retail customer base
 Data-centres, Data mining and CRM
 Advanced work-flow management tools
 All branches to run fully web-enabled software with most
having no mid or back-office capability on-site
 Decision support information on customer, product,
delivery channel and risk mitigation
Investing in the Internet
 To capitalise on entrepreneurial ideas
 There will be a successful dot.com proposition in every
space in the environment
 ICICI seen as a value enhancer in this business
 Sponsor, nurture and grow these initiatives
 Incubator facilities
 Investments in various dot.com initiatives

Riding the valuation potential of future winners

Agenda

 Strategic Focus
 e-enabling ICICI
 Operational Performance
 Financial Performance
 Asset Composition and Quality
 Capital and Shareholders
Business Environment: Positive Signals
 Real GDP growth of 6.0% in Q2:FY2000
 Annual inflation rate low at 2.7% as on Jan 1, 2000
 Manufacturing sector recorded 6.9% growth during Apr-Nov
1999
 Production of capital goods grew by 7.9%
 Output of consumer durables rose by 11.8%
 Intermediate goods production up by 8.9%
 Flow of funds from banks to commercial sector in Apr-Dec
1999 higher at Rs. 416.64 bn compared to Rs. 305.25 bn in
Apr-Dec 1998
 Buoyant capital markets
Extracting value from Group synergy...
 MCG, GCG and ICICI-Bank driving the efforts
 Corporate finance initiatives
 Increased asset share in key PSUs and short-term products
 Continued leadership in key industry sectors
 Emphasis on structured products
 Successful business interface created for ICICI-Bank
 Credit clients, CMS accounts, Power-pay accounts
 Creating business interface for ICICI Securities
 Debt placements of Rs. 24.45 billion
 Approvals - Dominated by Corporate
Finance products
Apr-De c 1998 Apr-De c 1 999
Infras truc ture
3 1 .2%
37.7%
0 .5 % 1.4%
Oil & Gas

21.8% Manufac turing

pro je c ts
1 7 .4% 3 3.0 %
Co rpo rate
Financ e
15.7%
Pe rs o nal
1 7 .9 %
Financ e
23.4%

Rs. 274.90 bn Rs. 326.71 bn

 Disbursals - Dominated by Corporate
Finance products
Apr-De c 1998 Apr-De c 1999
Infras truc ture
3 9 .2 %
0 .9 % 45.0% 2.0 %
Oil & Gas

1 5.3 % 14 .2%
Manufac turing
pro je c ts

Co rpo rate
Finance
1 8 .8 % Pe rs o nal
2 5.8 % 2 3 .2 %
1 5 .6% Finance

Rs. 138.04 bn Rs. 170.17 bn

 Diversified Loan Portfolio

Mar 31, 1997 De c 31, 1 999

25.3% Infras truc ture
8.8%

8.6%
Oil & Gas
16.6%

9.5%
Manufac turing
pro je c ts
73.1%
43.2%
14.9% Co rpo rate
Financ e

Rs. 297.83 bn Rs. 515.05 bn

Leveraging the retail franchise...
 Over 2.5 million retail customers
 Cross selling opportunities
 A strong customer-centric strategy for product design
and product-delivery
 Rapid expansion of branch network
 A total of 300 points of physical presence within the next
year -- up from the current level of 170
 Rapid expansion of ATM and cash-dispenser network
 The Power Pay model
 A “click and brick” distribution strategy

ATM

Internet
InternetBanking
Banking

81
81Branches
Branches
120
120ATMs
ATMs

75
75ICICI
ICICIcenters
centers
ICICI Customers
Call
Callcenter
center

8,000
8,000Agents
Agents
 Retail Assets: Completing the Product
Portfolio

Credit
Cards
Personal
Loans
Dealer
Funding
Consumer
Durable
Home Loans
Loans
Auto Loans

Nov 1998 Feb 1999 Apr 1999 May 1999 Nov 1999 Jan 2000
Creating the base in retail assets...
 Within a short period established an all India presence
 Multiple delivery channels
 Introduced innovative products and services
 Enabling customer capture and market share
 4th largest player in national automobile loan market
 Leader in key cities like Chennai and Bangalore
 Leadership in select cities in the housing loans market

Aiming for the premier position..

Retail Resources
 Completed 5 Public Issues of Bonds raising Rs. 16.20 bn
from over 430,000 investors
 Private placements of co-branded bonds adding
approximately 200,000 investors to the ICICI family of
customers
 New Initiatives
 Introduction of new product - Gilt Rate Plus Bond
 Stock exchange approval to specify scrip codes on Bond
Certificates, resulting in ease of trading
Agenda

 Strategic Focus
 e-enabling ICICI
 Operational Performance
 Financial Performance
 Asset Composition and Quality
 Capital and Shareholders
 Summary Performance (US GAAP)
Rs.bn
Q3 Q3 Inc. % Apr - Apr - Inc. % FY
98-99 99-00 De c 98 De c 99 98-99
Ne t income * 1.62 2.44 50.8 5.39 6.70 24.2 7.23
Stockholde rs ’ 37.74 67.39 78.6 37.74 67.39 78.6 36.51
e quity
Total as se ts 613.97 742.28 20.9 613.97 742.28 20.9 653.35
*Excluding extraordinary items and cumulative effect of change in accounting
policy
Summary Ratios (US GAAP)

9 months 9 months FY:98-99

e nde d De c e nde d De c
31, 1998 31, 1999
EPS (Rs .) 15.0 14.9 15.1
Re turn on Ass e ts (%) 1.3 1.3 1.3
Re turn on Equity (%) 20.3 17.4 20.0
Note:
- Net income excludes extraordinary items and cumulative effect of change
in accounting policy.
- Ratios for 9 months ended Dec 31, 1998 and 1999 are annualized.
 Summary Performance (Indian GAAP)
Rs.bn
Q3 Q3 Inc. Apr- Apr- Inc. FY
98-99 99-00 % Dec 98 Dec 99 % 98-99
Profit before tax 3.48 4.69 34.6 10.95 13.14 20.0 15.68
& provisions*
Profit after tax 2.13 2.52 18.1 7.21 7.92 9.9 10.01
Profit after tax 2.13 2.71 27.2 7.21 8.11 12.6 10.01
(including
extraordinary gains)
Shareholders’ equity 52.28 80.16 53.3 52.28 80.16 53.3 51.35
Assets 560.00 645.57 15.3 560.00 645.57 15.3 585.47
Approvals 62.64 85.57 36.6 274.90 326.71 18.8 342.20
Disbursals 54.91 61.08 11.2 138.04 170.17 23.3 192.25
Summary Ratios (Indian GAAP)

9 mo nths 9 mo nths FY:98-99*

e nde d De c e nde d De c
31, 1998* 31, 1999
We ighte d ave rage EPS (Rs .) 17.6 16.3 18.2
Re turn o n Ass e ts (%) 2.0 1.9 2.1
Re turn o n Ne t Wo rth (%) 19.4 15.9 20.3

*Diluted for domestic convertible which was converted on July 18, 1999.
Note: Ratios for 9 months ended Dec 31, 1998 and 1999 are annualized.
Reconciliation of net income - US GAAP
Rs. bn
Apr-De c 98 Apr-De c 99
As pe r Indian GAAP 7.21 8.11
Pro visions fo r cre dit lo ss e s (1.40) (1.65)
Amortisation of loan o rigination fe e s (0.13) 0.07
Bus ine s s co mbinatio n in re s pe ct of me rge rs (0.07) (0.06)
Inve stme nt diminution - 0.36
De fe rre d tax adjustme nts (0.01) (0.16)
Pre fe re nce divide nd payo ut (0.45) (0.81)
Unre alize d gain / (los s e s ) o n trading po rtfo lio 0.09 0.04
Ne t income o f cons o lidate d s ubs idiarie s 0.37 0.87
Othe rs 0.03 (0.07)
Extraordinary ite ms (0.25) -
Total adjus tme nts as pe r US GAAP (1.82) (1.41)
As pe r US GAAP* 5.39 6.70

Greater alignment of US GAAP profits with Indian GAAP

* Excluding extraordinary items and cumulative effect
of change in accounting policy
 Performance of Subsidiaries (Indian GAAP)
Rs. mn
Profit afte r Tax Total As s e ts

Apr-De c Apr-De c % Inc. Apr-De c Apr-De c %

1998 1999 1998 1999 Inc.
ICICI Bank 441.0 723.6 64.1 54,855.4 94,571.6 72.4
ICICI Se curitie s 114.5 467.9 308.5 16,384.5 20,542.4 25.4
ICICI PFS 51.9 42.5 (18.1) 1,754.7 3,134.3 78.6
ICICI Ve nture Fund 33.1 222.0 572.7 220.1 452.8 105.7
ICICI Infote ch 5.3 65.1 - 79.6 221.1 177.8
ICICI Broke rage 0.4 16.4 - 69.4 140.6 102.6
Total of above 646.2 1,537.5 137.9 73,363.7 119,062.8 62.3
Agenda

 Strategic Focus
 e-enabling ICICI
 Operational Performance
 Financial Performance
 Asset Composition and Quality
 Capital and Shareholders
Decline in NPL ratio since Q1-FY2000
6 .8 % 6.7%
US GAAP
6 .6 %

6 .4 % 6.3%

6 .2 % 6.1%
6.0%
6 .0 %

5 .8 %

5 .6 %

Mar-99 Jun-99 Sep-99 Dec-99

Net NPL ratio as per Indian GAAP down to 7.4% at December 31, 1999
from 8.1% at March 31, 1999
Organisational focus on NPLs reflected in the
significant increase in settlements
 Dues aggregating Rs. 2.89 billion settled in Apr-Dec 1999
compared to Rs. 2.64 billion in Apr-Dec 1998
 91% of principal dues collected
 77 cases settled in Apr-Dec 1999 compared to 66 cases in
Apr-Dec 1998

76% of principal dues collected on a PV basis

Agenda

 Strategic Focus
 e-enabling ICICI
 Operational Performance
 Financial Performance
 Asset Composition and Quality
 Capital and Shareholders
Capital Adequacy
16 15.0%
14
12 5
9.4%
10
Per cent

Tie r-2
8 3.2
Tie r-1
6
10
4
6.2
2
0
Mar 31, 1999 Dec 31, 1999*

Capital adequacy as per Indian GAAP is 17.7%

*Not adjusted for expected dividend payout

 Shareholding Pattern

Mar 31, 1999 De c 31, 1999

UTI
14.8% 13.5%
20.1% Ins uranc e co s .
5.8% 6.9%
32.6% Banks and FIs

Individuals
7.7%
Co rpo rate s
23.3% and MFs
22.6%
ADR ho lde rs

8.3%
22.0% FIIs & NRIs
6.4% 3.8%
12.2%
Thank You