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.
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 |