CONDENSED FINANCIAL STATEMENT (USD)

March 31, 1997

This Condensed Financial Statement is for information only and is extracted from the full text of the Annual Report 1996-97, prepared as per provisions of the (Indian) Banking Regulation Act, 1949. The Annual Accounts in Indian Rupees have been audited by Lodha & Company, Chartered Accountants, who have issued an Audit Report dated April 19, 1997 and which is included in the Annual Report. To complement this Condensed Financial Statement, we will be pleased to send the Annual Report upon request from the nearest branch or the Corporate Office of the Bank. Amounts in the United States Dollars are given for the Readers convenience only.

INTRODUCTION

The genesis of the Bank lay in India’s liberalized financial environment

The New Economic Policy announced by the Government of India in July 1991 proved to be a harbinger of a liberalized domestic financial environment. In keeping with this trend, the country’s central bank allowed the setting up of new private sector banks offering a high technology complement of banking services with a well capitalized base. It was in this context that the ICICI Banking Corporation Limited was established in June 1994.

The Bank has an authorized capital of Rs. 300 crore (USD 83.53 million). It is governed by the Banking Regulation Act, 1949 and the Companies Act, 1956, among others. The Bank is a Scheduled Bank under the Second Schedule to the Reserve Bank of India Act, 1934.

The Bank’s promoters provide institutional character and strong business support

Two pre-eminent All-India Financial Institutions, the Industrial Credit and Investment Corporation of India Limited and SCICI Limited which has since merged with the former, founded the Bank by contributing to the Bank’s Rs. 150 crore (USD 41.77 million) equity capital in the ratio of 75:25. Both institutions have been catalysts in the growth of Indian industry by extending term lending facilities to domestic corporates. ICICI has also been responsible for the establishment of institutions in different financial sectors such as credit rating, investment banking, asset management, venture capital and the like. The long term strategic goal of the promoters is to be able to provide all clients of the group universal banking products under one roof.

The Bank has built a substantial scale of business in a short time span by leveraging its impressive reach and technology as well as developing an array of financial products for its customers.

The Bank offers a complete range of commercial banking products and services to customers in all its target segments.

The Bank’s branch reach extends across 24 centres in 15 cities and 12 states. All branches are linked through Very Small Aperture Terminals (VSAT) technology, giving the Bank a powerful technology edge over its nearest competitors in terms of the service levels it can provide its customers. The Bank proposes to rapidly broaden the reach of its branch network and aggressively maintain the service differentiation derived by its high technology focus.

The expansion of the Bank’s retail network is crucial in developing a stable resource base on which to build the Bank’s future business plans. The Bank also offers its retail customers significant technology driven products, primary among them being access at all branches to Automated Teller Machines (ATMs) over and above the normal range of products offered by other commercial banks. The Bank’s electronic funds transfer facility is an added attraction to all customers, individuals and corporates alike.

The Bank has established a reputation for its skills in corporate advances, advisory services and treasury management. The Bank is an Authorized Dealer in foreign exchange and is one of the first banks (‘designated bank’) allowed to maintain the accounts of Foreign Institutional Investors in India. The Bank is also a registered underwriter and can act as bankers to primary market issuances. The Bank is a member of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and consequently can provide trade related services to all its customers with unmatched speed and efficiency.

ICICI Bank prides itself on having developed its current scale of business with an adherence to a strong system of institutional values, ethics and customer friendliness. The scale of business of the Bank is illustrated in the table below, which details salient features of the Bank’s performance for the financial year ended March 31, 1997 -

Performance of the Bank

(USD in million)*

* The figures in the United States dollars (USD) were arrived at converting the Indian Rupee figures at the following rates as announced by the Foreign Exchange Dealers’ Association of India, Mumbai, India -

Revenue items for the year ended March 31, 1996 have been converted at the closing rate on March 31, 1996, that is, INR 34.35 = USD1.

Revenue items for 1996 - 97 at the average of the exchange rates which prevailed as at the close of business on March 31, 1996 and March 31, 1997, that is INR 34.35 + 35.9150 = 70.265 / 2 - INR 35.1325 = USD 1.

Balance sheet items as at March 31, 1996 and March 31, 1997 have been converted at the exchange rates which prevailed as at the close of business on the respective dates, that is INR 34.35 and 35.9150 = USD 1 respectively

(USD in million)*