We have audited the standalone financial statements of ICICI Bank Limited (the “Bank”), which comprise the standalonebalance sheet as at 31 March 2025, and the standalone profit and loss account and the standalone cash flow statementfor the year then ended, and notes to the standalone financial statements, including a summary of significant accountingpolicies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalonefinancial statements give the information required by the Banking Regulation Act, 1949 as well as the Companies Act,2013 (the “Act”) in the manner so required for banking companies and give a true and fair view in conformity with theaccounting principles generally accepted in India, of the state of affairs of the Bank as at 31 March 2025, and its profitand its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act.Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the standalonefinancial statements section of our report. We are independent of the Bank in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Act, Banking Regulation Act, 1949 and applicablecirculars, directions and guidelines issued by the Reserve Bank of India (‘RBI’) from time to time and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financialstatements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of thestandalone financial statements of the current year. These matters were addressed in the context of our audit of thestandalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separateopinion on these matters. We have determined matters described below to be the key audit matters to be communicatedin our report.
Key Audit Matter
How the matter was addressed in our audit
Identification and provisioning of non-performing advances (NPA):
Total Loans and Advances (Net of Provision) as at 31 March 2025: ' 13,417,661,608 (in ‘000s)
Provision for NPA as at 31 March 2025: ' 180,237,324 (in ‘000s)
[Refer Schedule 9 and Schedule 17.3]
The Bank is required to comply with Master Circular
Our key audit procedures included:
“Prudential Norms on Income Recognition and Asset
Design and operating effectiveness of controls
Classification and Provisioning” pertaining to Advancesissued by the RBI ("IRAC norms"). IRAC norms prescribe
>
Understood Bank's approach to identification
the guidelines for identification and asset classification
of NPAs and provisioning, systems and controls
of non-performing advances ("NPA") and the minimum
implemented in this regard and its compliance
provision required for such advances.
with IRAC norms.
The Bank uses data from its IT systems usingautomated controls for identification of NPA, asset
Tested the design, implementation and operatingeffectiveness of key internal financial controls ona test check basis over identification of NPA on
classification of NPA as well as for computing
days past due basis, identification of NPA based
provision on NPA along with additional manual
on qualitative factors (including monitoring of
controls.
credit quality, monitoring of overdue accounts,
The provision on identified NPA is estimated based
stressed accounts, and restructured accounts),
on ageing, classification of NPAs, recovery estimates,nature of loan product, value of security and otherqualitative factors. The provision on identified NPAis also subject to the minimum provisioning norms
measurement of provision for NPA (including onrestructured advances), collateral valuation andassessing the reliability of information provided bythe Bank such as overdue reports.
specified by the RBI and approved policy of the Bank.
For corporate loans, tested the design,implementation and operating effectiveness of
The Bank is also expected to apply its judgement
key internal financial controls over monitoring of
to identify NPA and determine provisions required
the credits of borrowers, empanelment of valuers
towards NPA by applying quantitative factors
and valuation of the securities for NPAs. Tested the
(including days past due, collateral erosion, out of
review controls over the identification of impaired
order etc.) and qualitative factors (including stress and
accounts.
liquidity concerns).
Evaluated the governance process for computation
Additionally, the Bank create provisions on advances
of provision for NPAs to examine and test if the
which are not identified as NPA based on quantitative
provisioning is in compliance with the Board
threshold of “days past due”, but are considered as
approved policy and IRAC norms.
advances having higher risk indicators. Such provisions
Involved our information system specialist for
are towards identified portfolio which can potentially
testing IT general controls and application controls
turn into NPA. These are considered and presented as
over identification and provision for NPAs which
contingency provisions.
was scoped in. These have been elaborated inKey audit matters of Information technology (IT)
Since the identification of NPAs and provisioning foradvances involve the Bank’s judgement and estimation,some manual intervention and its significance to theBank’s financial statements, we have ascertainedidentification and provisioning of NPAs as a key auditmatter.
system and controls.
Substantive tests
> For selected sample borrowers, tested their assetclassification and provision amount based onquantitative and qualitative factors.
> Corporate loans classified as standard but exhibitingsome indicators of impairment, we independentlyassessed and challenged management on theirclassification and the need for provisioning.
> Tested details over computation of year end NPAprovisions, including provisions on restructuredloans to evaluate the same is in compliance with theIRAC norms.
> Assessed the contingency provision carried by theBank and challenged the rationale applied in theestimations used by the Bank.
Information technology (IT) system and controls
The Bank’s key financial accounting and reportingprocesses are highly dependent on informationsystems including automated controls, resulting in arisk of gaps in the IT control environment which couldresult in the financial accounting and reporting recordsbeing misstated.
Adequate IT general controls and application controlsare necessary for obtaining accurate, consistent andreliable information for financial reporting.
We have identified ‘IT systems and automated controls’as key audit matter because of high level of automation,significant number of systems being used by Bank andthe relative complexity of the IT architecture.
In assessing the controls over the IT systems of theBank, we involved our technology specialists to obtainan understanding of the IT architecture which includesIT environment, IT infrastructure and IT systems.
We evaluated and tested relevant IT general controlsand IT application controls of the in-scope IT systemsidentified as relevant for our audit of the financialstatements and financial reporting process of the Bank.
On such in-scope IT systems, we have tested key ITgeneral controls with respect to the following domains:
> Program change management which includescontrols designed for movement of programchanges to the production environment as perdefined procedures and restriction over developersand production personnel from accessing tochange applications, the operating system ordatabases in the production environment.
> User access management which includes controlsfor granting access rights, new user creation,removal of user rights, periodic access assessment,preventive controls of segregation of duties,password management and privilege access toauthorized personnel.
> Program development, which includes controlsover IT application development or implementationand related infrastructure, which are relied uponfor financial reporting.
> IT operations, which includes controls for jobscheduling, monitoring, backup and recovery.
Evaluated the design and tested the operatingeffectiveness of relevant key IT dependencies within thekey business processes, including testing of automatedcontrols, automated computations / accountingprocedures, interfaces, segregation of duties andsystem generated reports, wherever applicable.
Tested a combination of compensating controls orremediated controls and / or performed alternativeaudit procedures, where necessary.
The Bank’s Board of Directors are responsible for the other information. The other information comprises the informationincluded in the Bank’s annual report, but does not include the standalone financial statements and auditor’s reportthereon. The annual report is expected to be made available to us after the date of this auditor’s report.
Our opinion on the standalone financial statements does not cover the other information and we will not express anyform of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other informationidentified above when it becomes available and, in doing so, consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required tocommunicate the matter to those charged with governance and take necessary actions as applicable under the relevantlaws and regulations.
The Bank’s Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to thepreparation of these standalone financial statements that give a true and fair view of the state of affairs, [profit/loss] andcash flows of the Bank in accordance with the accounting principles generally accepted in India, including the AccountingStandards specified under Section 133 of the Act, provisions of Section 29 of the Banking Regulation Act, 1949 andapplicable circulars, directions and guidelines issued by the RBI from time to time. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Act, Banking Regulation Act, 1949and applicable circulars, directions and guidelines issued by the RBI, for safeguarding of the assets of the Bank and forpreventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of theaccounting records, relevant to the preparation and presentation of the standalone financial statements that give a trueand fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, Board of Directors are responsible for assessing the Bank’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Bank or to cease operations, or has norealistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Bank’s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected to influence the economicdecisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resultingfrom fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing ouropinion on whether the Bank has adequate internal financial controls with reference to standalone financialstatements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the Management and Board of Directors.
• Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis ofaccounting in preparation of standalone financial statements and, based on the audit evidence obtained, whethera material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attentionin our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including thedisclosures, and whether the standalone financial statements represent the underlying transactions and events in amanner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timingof the audit and significant audit findings, including any significant deficiencies in internal control that we identify duringour audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the standalone financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about thematter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our reportbecause the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefitsof such communication.
a. The standalone financial statements of the Bank for the year ended 31 March 2024, were audited by the predecessorauditors, who had expressed an unmodified opinion on 27 April 2024.
1. I n our opinion, the standalone balance sheet and the standalone profit and loss account have been drawn up inaccordance with the provisions of Section 29 of the Banking Regulation Act, 1949 and Section 133 of the Act.
2. As required by sub-section (3) of Section 30 of the Banking Regulation Act, 1949, we report that:
(a) we have obtained all the information and explanations which, to the best of our knowledge and belief, werenecessary for the purpose of our audit and have found them to be satisfactory;
(b) the transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and
(c) During the course of our audit, we have visited 84 branches to examine the records maintained at the branchesand perform relevant audit procedures. Since the key operations of the Bank are automated with the keyapplications integrated to the core banking systems, the audit is carried out centrally as all the necessaryrecords and data required for the purposes of our audit are available therein. Hence, no returns are being calledfrom the branch offices of the Bank.
(d) the standalone profit and loss account for the year ended 31 March 2025 shows a true balance of profits forthe period covered by such accounts
3. (A) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Bank so far as it appearsfrom our examination of those books;
c) Reporting on the accounts of any branch office of the Bank is not applicable due to centralized bankingsystem. Kindly refer our comments in paragraph 2(c) above;
d) The standalone balance sheet, the standalone profit and loss account, and the standalone cash flowstatement dealt with by this Report are in agreement with the books of account;
e) I n our opinion, the aforesaid standalone financial statements comply with the Accounting Standardsspecified under Section 133 of the Act, to the extent they are not inconsistent with the applicable circulars,guidelines and directions prescribed by the RBI;
f) On the basis of the written representations received from the directors between 3 April 2025 and 17April 2025 taken on record by the Board of Directors, none of the directors is disqualified as on 31March 2025 from being appointed as a director in terms of Section 164(2) of the Act; and
g) With respect to the adequacy of the internal financial controls with reference to standalone financialstatements of the Bank and the operating effectiveness of such controls, refer to our separate Report in“Annexure A”.
(B) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our information and accordingto the explanations given to us:
a) The Bank has disclosed the impact of pending litigations as at 31 March 2025 on its financial positionin its standalone financial statements - refer schedule 12, 17(12) and 18(42) to the standalone financialstatements;
b) The Bank has made provision, as required under the applicable law or accounting standards, for materialforeseeable losses, if any, on long-term contracts including derivative contracts - refer schedule 17(12) and18(42) to the standalone financial statements;
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education andProtection Fund by the Bank;
d) (i) The Management has represented that, to the best of its knowledge and belief, other than as disclosed
in schedule 18(59) to the standalone financial statements, no funds have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind of funds) by theBank to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with theunderstanding, whether recorded in writing or otherwise, that the Intermediary shall:
• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Bank (“Ultimate Beneficiaries”); or
• provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The management has represented that, to the best of its knowledge and belief, other than asdisclosed in the schedule 18(59) to the standalone financial statements, no funds have been receivedby the Bank from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with theunderstanding, whether recorded in writing or otherwise, that the Bank shall:
• directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Funding Party (“Ultimate Beneficiaries”); or
(iii) Based on the audit procedures that have been considered reasonable and appropriate in thecircumstances performed by us, nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, containany material misstatement.
e) The final dividend paid by the Bank during the year, in respect of the same declared for the previous year,is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
f) As stated in schedule 18(46) to the standalone financial statements, the Board of Directors of the Bankhave proposed final dividend for the year which is subject to the approval of the members at the ensuingAnnual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extentit applies to declaration of dividend.
g) Based on our examination which included test checks, the Bank has used accounting software formaintaining its books of account which, along with access management tools, have a feature of recordingaudit trail (edit log) facility and the same has operated throughout the year for all relevant transactionsrecorded in the software. Further, during the course of our audit, we did not come across any instance ofaudit trail feature being tampered with. Additionally, the audit trail has been preserved by the Bank as perthe statutory requirements for record retention.
(C) With respect to the matter to be included in the Auditor’s Report under Section 197(16) of the Act:
The Bank is a banking company as defined under the Banking Regulation Act, 1949. Accordingly, therequirements prescribed under Section 197 of the Act are not applicable.
For B S R & Co. LLP For C N K & Associates LLP
Chartered Accountants Chartered Accountants
Firm Registration no.: 101248W/W-100022 Firm Registration no.: 101961W/W100036
Ashwin Suvarna Manish Sampat
Partner Partner
Membership No.: 109503 Membership No.: 101684
UDIN: 25109503BMOQAX7178 UDIN: 25101684BMMLLV8938
Place: Mumbai Place: Mumbai
Date: 19 April 2025 Date: 19 April 2025