MESSAGE FROM THE CHAIRMAN

In fiscal 2023, the Indian economy continued to be resilient despite slowdown in the global economy impacted by commodity prices, lockdown in China, surge in global inflation and resultant monetary tightening by global central banks. India’s GDP grew with sustained improvement in underlying economic activity across sectors along with higher credit off-take, buoyant tax collection and continuation of government-led investments. The services sector, including services exports, rebounded and witnessed growth momentum. However, global and domestic inflationary pressures, especially in the wake of the situation in Ukraine, and sharp tightening of monetary policy by central banks globally led to monetary tightening by the Reserve Bank of India with a series of repo rate hikes and withdrawal of excess liquidity. Overall, the Indian financial sector has been stable and resilient, as reflected in the improved performance of banks, lower non-performing assets and adequate capital and liquidity buffers.

During fiscal 2023, the Bank continued to focus on profitable growth in business while maintaining a strong balance sheet and robust liquidity. The Bank delivered a healthy growth in profit along with improvement in asset quality parameters. The Bank strengthened its balance sheet with prudent provisioning, healthy capital and optimal asset-liability management. The growth in business was underpinned by the strategy to increase market share across key segments while focussing on micromarkets and ecosystems. The Bank aimed to grow its franchise by leveraging its strong financial position and well-recognised brand.

The focus on a 360º customer-centric approach with an objective to serve customers in a holistic manner has underpinned the Bank’s operations. The principle of ‘Fair to Customer, Fair to Bank’ has further strengthened the focus on customer-oriented initiatives and on long-term value creation. Fairness, transparency and ethics are core values in our dealings with all our stakeholders and employees are required to exhibit desired behaviours aligned to these ethos. The principle of ‘One Bank, One Team, One ROE’ has enabled growth in key business segments and increase in the Bank’s market share. Our continued belief in these value drivers reflected in the improved return to shareholders during fiscal 2023.

Continuing on the journey from Bank to Bank^Tech, the Bank is constantly upgrading and strengthening the technology infrastructure with a goal to make it secure, stable and resilient. The Bank has undertaken multiple projects across digital engagement platforms, which will provide a competitive edge across business and operational capabilities. The Bank seeks to be adaptable to digital developments, innovations and evolving cybersecurity issues. The Bank has shown agility in adopting and adapting to new emerging trends and addressing risks and opportunities.

The Bank’s commitment towards Environmental, Social and Governance (ESG) was evidenced during fiscal 2023, with several initiatives taken as part of the journey to achieving its sustainability objectives. The focussed approach overseen by the Risk Committee of the Board ensured consistent progress being made across various areas. An important step was taken by developing the Framework for Sustainable Financing, which provides guidance on areas of sustainable and sustainability-linked lending. Creating awareness and capability building among all stakeholders is an ongoing priority for the Bank. The focus on enhancing practices and disclosures on ESG-related aspects has led to improvement in the Bank’s ESG ratings.

The Bank strongly believes in creating a positive impact on society, through its business as well as through its corporate social responsibility (CSR) activities. The reach of efforts made through the ICICI Foundation for Inclusive Growth, touching every state and union territory of India, is remarkable. The efforts are in areas critical to the country’s development, including healthcare, environment & biodiversity, livelihoods and societal development. The Bank is committed to continuing these initiatives that have so far impacted about 10.9 million lives.

Governance and stability are top priorities for the Board, underpinning the articulated objective of growing within the guardrails of risk and compliance. In this regard, the Board has focussed on ensuring competency and independence to contribute objectively and responsibly towards the Bank’s progress. Ensuring quality discussions and information sharing at the Board level, and transparency in the disclosures of the Bank, has been a priority for the Board. With a commitment to the highest levels of corporate governance, the Board continuously endeavours to strengthen various policies and frameworks, and maintain oversight over risk management, audit and compliances through various Committees. The Board ensures that the assurance functions have adequate independence and stature to establish values and culture that are integral to sustainable banking.

Looking ahead, global economic conditions continue to remain uncertain, with monetary tightening by advanced economies and unevenness in growth prospects in various markets. However, India is well poised to grow sustainably, benefitting from the results of reforms undertaken and the vast potential of its economy. The Bank will continue to focus on participating in profitable opportunities and enhancing its franchise, underlined by risk-calibrated growth and a focus on value creation for all stakeholders.

We would like to thank all our stakeholders and look forward to your continued support.

With best wishes,