Fiscal 2022 was marked by a strong recovery in
economic activities, bringing to the fore the inherent
strengths in the Indian economy. Despite the setback
from the Covid-19 pandemic earlier, and with variants
of the virus and localised lockdowns during the year,
the Indian economy was resilient and saw a strong
rebound and progress towards normalcy. The recovery
in the Indian economy was broad-based, and supported
by the rollout of the vaccination programme. Amidst
these positive developments, however, the year ended
with new challenges of high energy prices and inflation,
geopolitical tensions, supply side disruptions and a likely
slowdown in global growth. Nonetheless, we remain
optimistic on India’s potential.
During fiscal 2022, ICICI Bank stayed committed to its
articulated strategy of targeting risk-calibrated growth in
core operating profit, while ensuring resilience against
potential risks and being well-poised to capitalise on
market opportunities. The strong financial performance
and portfolio quality that the Bank has delivered in the last
three years demonstrates the efficacy of the strategy. The
healthy growth in core operating profit and profit after tax
in fiscal 2022 reflect the strong underlying performance of
the business. The Bank grew its market share across key
segments, while maintaining credit discipline and a robust
balance sheet. The decline in credit costs during the year
was a further pointer to the effective risk management
framework adopted by the Bank over the last few years.
A key focal point for business growth is to create value
for customers. The Bank is pursuing this through a
customer-centric approach, underlined by the principles
of ‘Fair to Customer, Fair to Bank’ and ‘One Bank, One
ROE’. These value drivers lend confidence to the Bank’s
focus on ‘customer-360’ and becoming a trusted financial
partner for its clients. However, the dynamism, creativity
and commitment of our employees are a key driver
of the Bank’s success. Working as one team to serve
customers and facilitating cross-functional collaboration
will differentiate the Bank and enable value-unlocking of
our franchise.
A core enabler to meet the Bank’s strategic objectives
is technology. The initiatives in developing a strong
technology architecture, the focus on platforms and
digitisation, and continuous investments in innovations
and security features are enabling the Bank to respond to the needs of customers with agility. The Bank’s mobile
applications, iMobile Pay and InstaBIZ, have now become
universal and open architecture, enabling the Bank to
expand the number of people and businesses that it can
serve. In today’s dynamic environment, it is imperative
to be responsive to new technologies, digital processes
and design customer digital journeys with speedy
time-to-market. The Bank’s competencies will only
strengthen as it progresses on transforming from
Bank to BankTech.
The Bank made further progress in the area of
Environmental, Social and Governance (ESG), with the
adoption of a Board-approved ESG policy and formalising
Board oversight on ESG by including it within the remit
of the Risk Committee. Further, to understand the ESG
considerations of stakeholders, the Bank undertook a
survey to identify ESG issues believed to be material for
the Bank by our stakeholders. The top five issues that
emerged were compliance with regulations and other
laws, digital innovation/transformation, data privacy and
cybersecurity, corporate governance & business ethics,
and transparency & disclosures. An approach to integrate
ESG and climate change risks in the Bank’s lending and
risk management has also been developed. The Bank will
remain cognizant of the structural shifts in a decarbonising
world, and will aim to build mitigants while capitalising
on the opportunities that would emerge within India’s
national goals and commitments.
The Bank endeavours to promote long-term sustainable
growth in the economy through responsible corporate
citizenship. The dedicated focus of ICICI Foundation
on creating a positive social and environmental impact
has led to several projects being undertaken across the
country. The efforts made in the areas of healthcare
and environmental sustainability, especially in rural and
remote areas, have yielded positive impact.
The Board is committed to maintaining highest standards
of corporate governance and will continue to review
and strengthen these practices. During the year, the
Board approved the Risk and Compliance Culture Policy,
anchored on five key principles. The Board and its
Committees conducted regular reviews to assess the
Bank’s response to opportunities and challenges and
evaluating the impact on the business and loan portfolio.
Ensuring organisational resilience and responsiveness to the evolving technological developments and
cybersecurity are priority areas of focus. The Board will
continue to maintain integrity, fairness and transparency
in our engagement with all our stakeholders.
Looking ahead, uncertainties have resurfaced as
economies will have to tackle issues of inflation, monetary
policy actions and tightening global liquidity conditions.
A slowdown in global economic growth seems inevitable
in the immediate period, with likely spill over to India.
The Bank will focus on remaining strong and resilient
while seeking to maintain sustainable, risk-calibrated and
profitable growth in business.
We would like to thank all our stakeholders and look
forward to your continued support.
With best wishes,
Girish Chandra Chaturvedi
Chairman
