ICICI Bank's exposure to its single largest borrower as on March 31, 2002 was at 21.4 per cent of its total capital and for the single largest borrower group is 41.3 per cent.
According to the Reserve Bank of India, the exposure to the single largest borrower should be not exceed 15 per cent and 40 per cent for the group.
However, exposure to borrowers belonging to a group may exceed the 40 per cent norm by an additional 10 per cent provided the additional credit exposure is on account of extension of credit to infrastructure projects such as power, telecommunication, roads and ports.
ICICI Bank in its annual report said that the excess of the exposure, in case of the largest borrower, over the prescribed limit, follows the reduction in the bank's total capital consequent to the fair valuation of ICICI's assets.
The bank has sought RBI permission to exceed the exposure limit. The bank has further added that the exposure of 41.3 per cent is within the prescribed limit taking into account infrastructure financing.
The bank's exposure to the second largest borrower is at 20.2 per cent and 14.1 per cent for the third largest. In case of borrower groups, the bank's exposure to the second largest borrower group was at 32.7 per cent as on March 31, 2002.
The bank has the largest exposure to the iron and steel industry at 10.9 per cent (Rs 8,934 crore) of its total exposure. This was closely followed by the electricity sector at 10.7 per cent (Rs 8,753 crore).
Retail finance which was the third largest industry, represented the fastest growing segment according to the bank at 9.4 per cent (Rs 7,735 crore). The retail exposure of the bank also includes the portfolio of ICICI Home Finance Company which is a wholly owned subsidiary.
The exposure of the bank to the service industry was at 9.1 per cent at Rs 7478 crore.
