We have audited the standalone financial statements of ICICI Bank Limited (the “Bank”), which comprise the standalone
balance sheet as at 31 March 2025, and the standalone profit and loss account and the standalone cash flow statement
for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting
policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial 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 the
accounting principles generally accepted in India, of the state of affairs of the Bank as at 31 March 2025, and its profit
and its cash flows for the year ended on that date.
Basis for Opinion
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 standalone
financial statements section of our report. We are independent of the Bank in accordance with the Code of Ethics issued
by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit
of the standalone financial statements under the provisions of the Act, Banking Regulation Act, 1949 and applicable
circulars, directions and guidelines issued by the Reserve Bank of India (‘RBI’) from time to time and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial
statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
standalone financial statements of the current year. These matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. We have determined matters described below to be the key audit matters to be communicated
in our report.
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Key Audit Matter
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How the matter was addressed in our audit
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Identification and provisioning of non-performing advances (NPA):
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Total Loans and Advances (Net of Provision) as at 31 March 2025: ' 13,417,661,608 (in ‘000s)
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Provision for NPA as at 31 March 2025: ' 180,237,324 (in ‘000s)
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[Refer Schedule 9 and Schedule 17.3]
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The Bank is required to comply with Master Circular
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Our key audit procedures included:
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“Prudential Norms on Income Recognition and Asset
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Design and operating effectiveness of controls
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Classification and Provisioning” pertaining to Advances
issued by the RBI ("IRAC norms"). IRAC norms prescribe
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>
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Understood Bank's approach to identification
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the guidelines for identification and asset classification
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of NPAs and provisioning, systems and controls
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of non-performing advances ("NPA") and the minimum
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implemented in this regard and its compliance
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provision required for such advances.
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with IRAC norms.
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The Bank uses data from its IT systems using
automated controls for identification of NPA, asset
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Tested the design, implementation and operating
effectiveness of key internal financial controls on
a test check basis over identification of NPA on
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classification of NPA as well as for computing
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days past due basis, identification of NPA based
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provision on NPA along with additional manual
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on qualitative factors (including monitoring of
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controls.
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credit quality, monitoring of overdue accounts,
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The provision on identified NPA is estimated based
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stressed accounts, and restructured accounts),
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on ageing, classification of NPAs, recovery estimates,
nature of loan product, value of security and other
qualitative factors. The provision on identified NPA
is also subject to the minimum provisioning norms
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measurement of provision for NPA (including on
restructured advances), collateral valuation and
assessing the reliability of information provided by
the Bank such as overdue reports.
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specified by the RBI and approved policy of the Bank.
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For corporate loans, tested the design,
implementation and operating effectiveness of
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The Bank is also expected to apply its judgement
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key internal financial controls over monitoring of
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to identify NPA and determine provisions required
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the credits of borrowers, empanelment of valuers
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towards NPA by applying quantitative factors
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and valuation of the securities for NPAs. Tested the
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(including days past due, collateral erosion, out of
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review controls over the identification of impaired
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order etc.) and qualitative factors (including stress and
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accounts.
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liquidity concerns).
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Evaluated the governance process for computation
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Additionally, the Bank create provisions on advances
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of provision for NPAs to examine and test if the
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which are not identified as NPA based on quantitative
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provisioning is in compliance with the Board
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threshold of “days past due”, but are considered as
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approved policy and IRAC norms.
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advances having higher risk indicators. Such provisions
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Involved our information system specialist for
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are towards identified portfolio which can potentially
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testing IT general controls and application controls
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turn into NPA. These are considered and presented as
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over identification and provision for NPAs which
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contingency provisions.
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was scoped in. These have been elaborated in
Key audit matters of Information technology (IT)
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Since the identification of NPAs and provisioning for
advances involve the Bank’s judgement and estimation,
some manual intervention and its significance to the
Bank’s financial statements, we have ascertained
identification and provisioning of NPAs as a key audit
matter.
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system and controls.
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Key Audit Matter
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How the matter was addressed in our audit
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Substantive tests
> For selected sample borrowers, tested their asset
classification and provision amount based on
quantitative and qualitative factors.
> Corporate loans classified as standard but exhibiting
some indicators of impairment, we independently
assessed and challenged management on their
classification and the need for provisioning.
> Tested details over computation of year end NPA
provisions, including provisions on restructured
loans to evaluate the same is in compliance with the
IRAC norms.
> Assessed the contingency provision carried by the
Bank and challenged the rationale applied in the
estimations used by the Bank.
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Information technology (IT) system and controls
The Bank’s key financial accounting and reporting
processes are highly dependent on information
systems including automated controls, resulting in a
risk of gaps in the IT control environment which could
result in the financial accounting and reporting records
being misstated.
Adequate IT general controls and application controls
are necessary for obtaining accurate, consistent and
reliable 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 and
the relative complexity of the IT architecture.
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In assessing the controls over the IT systems of the
Bank, we involved our technology specialists to obtain
an understanding of the IT architecture which includes
IT environment, IT infrastructure and IT systems.
We evaluated and tested relevant IT general controls
and IT application controls of the in-scope IT systems
identified as relevant for our audit of the financial
statements and financial reporting process of the Bank.
On such in-scope IT systems, we have tested key IT
general controls with respect to the following domains:
> Program change management which includes
controls designed for movement of program
changes to the production environment as per
defined procedures and restriction over developers
and production personnel from accessing to
change applications, the operating system or
databases in the production environment.
> User access management which includes controls
for granting access rights, new user creation,
removal of user rights, periodic access assessment,
preventive controls of segregation of duties,
password management and privilege access to
authorized personnel.
> Program development, which includes controls
over IT application development or implementation
and related infrastructure, which are relied upon
for financial reporting.
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Key Audit Matter
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How the matter was addressed in our audit
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> IT operations, which includes controls for job
scheduling, monitoring, backup and recovery.
Evaluated the design and tested the operating
effectiveness of relevant key IT dependencies within the
key business processes, including testing of automated
controls, automated computations / accounting
procedures, interfaces, segregation of duties and
system generated reports, wherever applicable.
Tested a combination of compensating controls or
remediated controls and / or performed alternative
audit procedures, where necessary.
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Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
The Bank’s Board of Directors are responsible for the other information. The other information comprises the information
included in the Bank’s annual report, but does not include the standalone financial statements and auditor’s report
thereon. 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 any
form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is materially
inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance and take necessary actions as applicable under the relevant
laws and regulations.
Management’s and Board of Directors’ responsibilities for the Standalone Financial Statements
The Bank’s Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the
preparation of these standalone financial statements that give a true and fair view of the state of affairs, [profit/loss] and
cash flows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Act, provisions of Section 29 of the Banking Regulation Act, 1949 and
applicable circulars, directions and guidelines issued by the RBI from time to time. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act, Banking Regulation Act, 1949
and applicable circulars, directions and guidelines issued by the RBI, for safeguarding of the assets of the Bank and for
preventing 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 of
adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true
and 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 to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the Bank or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Bank’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are
free 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 with
SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions 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 skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from 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 are
appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our
opinion on whether the Bank has adequate internal financial controls with reference to standalone financial
statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related 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 of
accounting in preparation of standalone financial statements and, based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’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 the
disclosures, and whether the standalone financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably 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 most
significance in the audit of the standalone financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Other Matter
a. The standalone financial statements of the Bank for the year ended 31 March 2024, were audited by the predecessor
auditors, who had expressed an unmodified opinion on 27 April 2024.
Report on Other Legal and Regulatory Requirements
1. I n our opinion, the standalone balance sheet and the standalone profit and loss account have been drawn up in
accordance 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, were
necessary 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 branches
and perform relevant audit procedures. Since the key operations of the Bank are automated with the key
applications integrated to the core banking systems, the audit is carried out centrally as all the necessary
records and data required for the purposes of our audit are available therein. Hence, no returns are being called
from 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 for
the 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 knowledge
and 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 appears
from our examination of those books;
c) Reporting on the accounts of any branch office of the Bank is not applicable due to centralized banking
system. Kindly refer our comments in paragraph 2(c) above;
d) The standalone balance sheet, the standalone profit and loss account, and the standalone cash flow
statement 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 Standards
specified 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 17
April 2025 taken on record by the Board of Directors, none of the directors is disqualified as on 31
March 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 financial
statements 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 the
Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our information and according
to the explanations given to us:
a) The Bank has disclosed the impact of pending litigations as at 31 March 2025 on its financial position
in its standalone financial statements - refer schedule 12, 17(12) and 18(42) to the standalone financial
statements;
b) The Bank has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts - refer schedule 17(12) and
18(42) to the standalone financial statements;
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection 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 or
invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Bank to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the
understanding, 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 whatsoever
by 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 as
disclosed in the schedule 18(59) to the standalone financial statements, no funds have been received
by the Bank from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the
understanding, 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 whatsoever
by or on behalf of the Funding Party (“Ultimate Beneficiaries”); or
• provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures that have been considered reasonable and appropriate in the
circumstances performed by us, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain
any 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 Bank
have proposed final dividend for the year which is subject to the approval of the members at the ensuing
Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent
it applies to declaration of dividend.
g) Based on our examination which included test checks, the Bank has used accounting software for
maintaining its books of account which, along with access management tools, have a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software. Further, during the course of our audit, we did not come across any instance of
audit trail feature being tampered with. Additionally, the audit trail has been preserved by the Bank as per
the 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, the
requirements 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
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