26.157FlashnoteFIGCommercial BanksEquity IndiaOverweightabcGlobal ResearchICICI Bank (ICICIBC IN)Target price (INR)Share price (INR)Forecast dividend yield (%)Potential return (%)1344.001078.401.5OW: 2QFY13 what you hear is what you get ICBK has consistently met targets on the back of realisticguidance this year, unlike many PSU banksNote: Potential return equals the percentagedifference between the current share price andthe target price, plus the forecast dividend yield Clear indicators of improving domestic loan growth, firmPerformanceAbsolute (%)Relative (%)1M1.20.53M18.95.512M23.714.0margins and superior NPL management positions it well fora credit cycle turnaroundIndexRICBloombergBOMBAY SE SENSITIVE INDEXICBK.BOICICIBC IN Reiterate OW with revised TP of INR 1,344 from INR1,257implying potential return of 26%Market cap (USDm)Market cap (INRm)Free float (%)23,2081,243,4622QFY13 earnings surprised marginally on the top line but magnified to an 8% surprise atthe bottom line given in line provisioning. The stock initially spiked but ultimately closed26 October 2012Sachin Sheth*AnalystHSBC Securities & Capital Markets(India) Private Limited+91 22 2268 1224sachinshethhsbc.co.inTejas Mehta*AnalystHSBC Securities & Capital Markets(India) Private Limited+91 22 2268 1243tejasmehtahsbc.co.inTodd Dunivant*Head of Banks Research, Asia PacificThe Hongkong and Shanghai BankingCorporation Limited+852 2996 6599tdunivanthsbc.com.hkView HSBC Global Research at:http:/www.research.hsbc.com*Employed by a non-US affiliate ofHSBC Securities (USA) Inc, and is notregistered/qualified pursuant to FINRAregulationsIssuer of HSBC Securities and Capitalreport: Markets (India) Private LimitedDisclaimer &DisclosuresThis report must be readwith the disclosures andthe analyst certifications inthe Disclosure appendix,and with the Disclaimer,which forms part of itmarginally lower after a spate of poor PSU bank results were announced.Operating metrics: Loan growth was driven by domestic corporate loans (past projectapprovals and working capital credit) followed by retail loans (home and vehicle loans)where ICBK is clawing back share from a low base. Funding costs flattened on the backof higher retail deposit component to help margins remain firm at 3% overall and rise to3.4% for domestic business with CASA remaining at a stable 41%. Fee momentum hasnaturally slowed given the slowing corporate/macro environment and remains a weak spotin the numbers. However, slippages and credit costs remained on track despite a largemedia account slipping into NPL status resulting in earnings growth of 30% y/y, about 8%higher than our estimates. Tier 1 remained robust at 12.9% and ROA was 1.6%Earnings outlook: We fine-tune our numbers marginally and look for 23% CAGR inearnings up to FY15e driven by 17% loan growth this year and 20% for the subsequenttwo years, flattish margins after this years 22bps pickup, weak fee growth this year,stable cost-income ratio and credit costs remaining at 75bps this year and next.Valuations and target price: The stock trades at 14x PE and 1.8x PB rolling forward 12months on an overall basis but at 12x and 1.5x on a parent-only basis, making it one of thecheapest private bank in our coverage universe, even after the 15% outperformance to theBankex YTD. We maintain our target multiples at 18x PE and 1.8x PB (October 2014base) inline with its 3-year average and believe investors will use the PB multiple onadjusted book values after writing off all unprovided NPLs to factor in the heightenedasset quality risks in the current weak environment, which represents a minor 2%adjustment for ICICI Bank. Hence, we set our 12-month target price at INR1,344 (vs.INR1,257 earlier) implying a potential return of 26%. Retain OW rating. Stock catalyst islikely to be improving growth momentum along with stable asset quality; Key risks: (1)Slower than expected loan growth momentum; (2) spike in NPLs and credit costsICICI Bank (ICICIBC IN)Commercial Banks26 October 2012Financials & valuationabcYear toP&L summary(INRm)3/2012a 3/2013e 3/2014e 3/2015eYear toGrowth (YoY %)3/2012a3/2013e3/2014e3/2015eNet Interest IncomeNon-interest IncomeNet fees/commissionTrading profitsOtherTotal Operating incomeOperating expenseStaff costsOther oper expensePPOPProvisionsBad debtOtherOther non-oper profit(loss)HSBC PBTExceptionalsProfit-before taxTaxationPATMinorities + pref dividendAttributable profitHSBC attributable profitBalance sheet summary (INRm)Total assetsCustomer loans (net)Investment assetsOther_assetsTotal LiabilitiesCustomer depositsDebt securities issuedOther liabilitiesTotal capitalOrdinary equityMinorities + other capitalIEA (avg)IBL (avg)107,34275,02866,9413,3144,773182,36978,50435,15343,352103,86515,8919,9325,96087,973-87,97323,32164,653-64,65364,6534,736,4712,537,2771,595,600603,5944,128,9182,555,0001,398,149175,770607,552604,0293,5244,151,9413,650,606135,62583,74775,8502,5185,379219,37290,90540,15950,746128,46720,51915,1685,351107,948-107,94828,71479,234-79,23479,2345,495,3912,974,6221,824,921695,8474,831,4362,975,5171,622,989232,929663,956660,4323,5244,834,8124,275,827162,45296,97488,3612,5186,095259,426103,50845,74457,765155,91824,47218,4446,028131,445-131,44535,49095,955-95,95595,9556,540,7223,576,3052,149,957814,4595,806,3283,490,1721,897,295418,861734,394730,8703,5245,693,9254,992,986197,452114,754105,3602,5186,875312,205122,11952,09070,029190,08627,04519,8907,156163,041-163,04144,021119,020-119,020119,0207,790,3984,300,1712,536,221954,0056,965,1864,100,2672,216,736648,183825,212821,6883,5246,788,3455,852,235Net interest incomeNon-interest incomeOperating expensePPOPProvisionsPBTPATCustomer loans (net)Total AssetsRWACustomer depositsRatios (%)NIMGross yieldCost of fundsSpreadNPL/gross loansCredit costCoverageNPL/RWAProvision/RWANet write-off/RWANPL/NTENet loans/total assetsRWA/total assetsLoans/depositsAvg IEA/avg total assetsAvg IBL/avg total liabCost/incomeNon-int income/total incomeROAA (including goodwill)ROAE (including goodwill)Return on avg tier 1Leverage (x)19.012.918.614.8(30.6)30.225.517.316.616.713.32.598.086.251.833.60.480.42.41.9-15.753.684.299.394.483.043.041.11.4711.213.57.626.311.615.823.729.122.722.617.216.045.116.52.818.406.322.073.50.678.01.81.4-16.154.1105.3100.094.583.641.438.21.5512.513.48.119.815.813.921.419.321.821.120.219.018.217.32.858.226.122.103.20.679.01.71.416.154.7104.5102.594.683.039.937.41.5913.813.58.721.518.318.021.910.524.024.020.219.118.317.52.918.005.902.092.90.580.01.61.315.755.2103.8104.994.781.739.136.81.6615.328.49.2Capital adequacy (%)Valuation dataRWA (INRm)Core tier 1Total tier 1Total capitalPer share data (INR)3,985,858 5,784,505 6,837,690 8,088,88112.7% 11.4% 10.7% 10.2%12.7% 11.7% 10.9% 10.4%18.5% 17.9% 16.2% 14.8%PE (diluted EPS)P/PPOPP/BVPSP/NTEDividend yield (x)P/Deposit19.212.02.12.11.50.515.79.71.91.91.60.413.08.01.71.71.80.410.46.51.51.51.90.3EPS reported (fully diluted)56.168.783.2103.2P/Asset0.30.20.20.2HSBC EPS (fully diluted)DPS56.116.568.717.083.219.0103.221.0Note: p=provisionalNAVNAV (including goodwill)ROAA deconstructionNet interest incomeTotal interest incomeTotal interest expenseNet fees & commissionOther incomeOperating incomeOperating expenses524.0524.02.447.625.181.520.184.151.78572.9572.92.657.945.291.480.154.291.78634.0634.02.707.775.071.470.144.311.72712.8712.82.767.584.821.470.134.361.70Price relative127511751075975875775675575127511751075975875775675575Staff costs0.800.780.760.732010201120122013Other oper exp0.990.990.960.98ICICI BankRel to BOMBAY SE SENSITIVE INDEXPPOPProvisionsNon-op itemsPBTTaxationPAT2.360.36-2.000.531.472.510.40-2.110.561.552.590.41-2.180.591.592.650.38-2.280.611.66Source: HSBCNote: price at close of 26 October 201222Q064Q062Q074Q072Q084Q082Q094Q092Q104Q102Q114Q112Q124Q122Q134Q06 2Q074Q07 2Q084Q08 2Q09 4Q092Q10 4Q10 2Q11 4Q11 2Q124Q12 2Q134Q074Q09 2Q10 4Q102Q12 4Q12 2Q132Q08 4Q08 2Q092Q11 4Q112Q06 4Q062Q07 4Q07 2Q08 4Q082Q09 4Q09 2Q104Q10 2Q11 4Q11 2Q124Q12 2Q134Q091Q102Q103Q104Q10 1Q11 2Q113Q11 4Q11 1Q12 2Q123Q124Q121Q132Q131Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13ICICI Bank (ICICIBC IN)Commercial Banks26 October 2012ICICI Bank: CASA mix, MarginsICICI Bank: Segment-wise Loan growth (Y/Y)abc50%45%40%35%30%25%20%3. 1%2. 9%2. 7%2. 5%2. 3%2. 1%1. 9%60%40%20%0%-20%-40%Y/Y growthLow cost deposit mixNet Interest Margins (RHS)Retailw /sale internationalw/sale domesticTotalSource: Company data, HSBCICICI Bank: Net interest margin detailsSource: Company data, HSBCICICI Bank: Trends in NPLs15%13%11%9%7%5%3.5%3.0%2.5%2.0%1.5%1.0%0.5%0.0%9%7%5%3%1%Yld on earning assets (LHS)Spread (RHS)Source: Company data, HSBCICICI Bank: NPL provisioning2.5%2.0%1.5%1.0%0.5%Cost of funds (LHS)NIM (reported) (RHS)Gross NPL ratioothersSource: Company data, HSBCICICI Bank: Restructured Loans3.0%2.5%2.0%1.5%1.0%0.5%0.0%of w hich Retail0.0%Adjusted net llp/loansSource: Company data, HSBCGross LLP/ Avg LoansRestructured Loans/Total LoansSource: Company data, HSBC32Q06 4Q06 2Q07 4Q07 2Q084Q08 2Q09 4Q092Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q132Q06 4Q06 2Q07 4Q07 2Q084Q08 2Q09 4Q092Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q131Q08 3Q083Q10 1Q111Q06 3Q06 1Q07 3Q071Q09 3Q09 1Q103Q11 1Q12 3Q12 1Q132Q112Q134Q09 2Q10 4Q104Q11 2Q12Oct-07Oct-094Q12Oct-11Oct-99Oct-05Oct-11Oct-97Oct-01Oct-03Oct-07Oct-09Oct-99Oct-05Oct-97Oct-01Oct-03ICICI Bank (ICICIBC IN)Commercial Banks26 October 2012ICICI Bank: Core fees/Core revenues55%50%45%40%35%30%ICICI Bank: Cost Income Ratio70%60%50%40%30%abcProportion of core fees to core incomeCost Income RatioCore Cost Income RatioSource: Company data, HSBCICICI Bank: Retail Loans growth momentum250Source: Company data, HSBCICICI Bank: Domestic and International NIMs400%200150100500Total retail DisbursementsYoY Grow th in Retail book (RHS)50%0%-50%-100%YoY Grow th in Retail disb (RHS)300%200%100%0%Reported NIMs - overallInternational NIMs (assumed at 1%)Domestic NIMsSource: Company data, HSBC estimates; * disbursement data are HSBC estimatesICICI Bank: PE - 12mth rolling forward40x35x30x25x20x15x10x5x0xSource: Company data, HSBCICICI Bank: PB - 12mth rolling forward4.5x4.0x3.5x3.0x2.5x2.0x1.5x1.0x0.5x0.0xRolling P/ESource: Bloomberg, Company data, HSBCAv g 5y rRolling PBSource: Bloomberg, Company data, HSBCAv erage 5 year4-ICICI Bank (ICICIBC IN)Commercial Banks26 October 2012ICICI Bank: 2Q FY13 results summaryabc(INRbn)Q2FY13y-o-y %q-o-q %Income statementInterest incomeInterest on AdvancesIncome on InvestmentsInterest on Balances with RBI & other inter bank fundsOther interestInterest expenseNet interest incomeOther income - ex treasuryTreasury gainTotal other incomeOperating incomeCore operating incomeOperating expenseEmployee expensesOperating profitCore operating profitLoan loss provisionsOther provisionsTotal provisionsPre tax profitTaxNet profitBalance sheetAdvancesDepositsCASA mixGross NPLsNet NPLsTotal AssetsAverage Total AssetsRatiosLDRIncremental LDRMargins (reported)NII / Avg DepositsCost-income ratioCore cost income ratioProvisions/Avg loansGross NPL ratioNet NPL ratioCoverage ratioCoverage ratio (RBI guidelines)Tier 1 ratioTotal CAREffective tax rateTax/Operating ProfitROA100.2668.4927.451.492.8466.5533.7118.711.7220.4354.1452.4222.219.6631.9330.215.030.055.0826.857.2919.56Q2FY132,7512,81440.7%100.3621.344,9714,903Q2FY1397.7113.13.004.9141.042.40.743.540.7878.778.712.918.327.222.81.5923%27%17%29%-10%18%35%3%315%17%28%21%17%15%36%24%68%-71%59%32%37%30%y-o-y %18%15%(143)bps0%-2%13%15%y-o-y %pnts2.3(67.6)0.390.70(3.5)(1.4)0.2(0.6)(0.2)0.50.5(0.2)(0.7)1.00.250.25%6%2%20%8%5%6%-2%919%9%7%3%5%-2%8%2%29%-93%9%8%9%8%q-o-q %2%5%7 bps2%12%3%2%q-o-q %pnts(2.5)(15.5)(0.01)0.03(0.8)0.70.00.1(1.9)(1.9)0.2(0.3)0.20.170.0Source: Company data, HSBC5-ICICI Bank (ICICIBC IN)Commercial Banks26 October 2012ICICI Bank: Earnings outlookabc(INRm)FY13ey-o-y %FY14ey-o-y %FY15ey-o-y %Income statementInterest IncomeInterest ExpensesNet Interest Income (NII)Total Non-Interest IncomeTotal IncomeOperating ExpensesPre-provisioning ProfitsProvisions for NPAsTotal ProvisionsPBTTaxPAT406,067270,442135,625219,37290,905128,467125,94815,16820,519107,94828,71479,23421.1%18.6%26.3%20.3%15.8%23.7%25.3%52.7%29.1%22.7%23.1%22.6%467,783305,331162,452259,426103,508155,918153,39918,44424,472131,44535,49095,95515.2%12.9%19.8%18.3%13.9%21.4%21.8%21.6%19.3%21.8%23.6%21.1%542,987345,535197,452312,205122,119190,086187,56819,89027,045163,04144,021119,02016.1%13.2%21.5%20.3%18.0%21.9%22.3%7.8%10.5%24.0%24.0%24.0%Balance Sheety-o-y %y-o-y %y-o-y %DepositsNet AdvancesTotal AssetsBPSEPS2,975,5172,974,6225,495,391572.9168.7316.5%17.2%16.0%9.3%22.5%3,490,1723,576,3056,540,722634.0183.2417.3%20.2%19.0%10.7%21.1%4,100,2674,300,1717,790,398712.80103.2517.5%20.2%19.1%12.4%24.0%Ratiosy-o-y %pntsy-o-y %pntsy-o-y %pntsNet Interest MarginROAROETax rateCost IncomeCore Cost Income2.8%1.5%12.5%26.6%41.4%41.9%0.220.081.340.09(1.61)(1.92)2.9%1.6%13.8%27.0%39.9%40.3%0.050.051.260.40(1.54)(1.63)2.9%1.7%15.3%27.0%39.1%39.4%0.060.071.54(0.78)(0.86)Source: Company data, HSBC estimates6623ICICI Bank (ICICIBC IN)Commercial Banks26 October 2012Valuation and risksOverweight, Target Price INR1,344We continue to value ICICI Bank using a weighted average combination of PE, PB and economic profitmodel (EPM) methodologies. We assign a 50%, 20%, and 30% weight each to the PE, PB, and EPMcomponents, respectively. The three-stage EPM uses explicit forecasts until FY15e, followed by 10 yearsof semi-explicit forecasts. The final stage of 12 years (fade period) assumes convergence of ROE andCOE. EPM is based on the assumptions in the following table:ICICI: EPM assumptionsSemi-explicit forecasts for 10 yrsabcLoan CAGRDividend payoutFade period of 12 yrsRisk free rateBetaEquity risk premiumCost of Equity14%30%8%1.06%14%NewOldEPM value of BankEPM value of SubsidiariesTotal EPM value (including subsidiaries)Source: HSBC estimatesICICI: Sum-of-parts valuation (INRm)690160851661160821StakeValue to ICBKValue/share RemarksICICI Prudential Life InsuranceICICI Lombard General Insurance74%74%71,7063,64815x new business multiple, 14% NBAP margins15x earningsICICI Prudential AMCOther Domestic subsidiariesInternational subsidiaries51%100%100%17,31170,33021,9681561194% of AUMOther subs1x BVEPM value of Subsidiaries160Source: Company data, HSBC estimatesUnder our research model, for stocks without a volatility indicator, the Neutral band is 5 percentagepoints above and below the hurdle rate for Indian stocks of 10%. Our target price implies a potentialreturn of 26%, which is above the Neutral band of our model; therefore, we are reiterating our OW ratingon the stock. Potential return equals the percentage difference between the current share price and thetarget price, including the forecast dividend yield when indicated.ICICI: Valuations and risks summary (INR)PEmultipleWeight 50%PE-based TPPBmultipleWeight 20%PB-based TPWeight 30%DCF valueWeighted Downside risksTarget PriceNew18.0x1,7081.8x1,1718511,344 Slower than expected loan growth momentum, spike inNPLs and credit costsOld18.0x1,5731.8x1,1218211,257Source: HSBC estimates7ICICI Bank (ICICIBC IN)Commercial Banksabc26 October 2012Disclosure appendixAnalyst CertificationThe following analyst(s), economist(s), and/or strategist(s) who is(are) primarily responsible for this report, certifies(y) that theopinion(s) on the subject security(ies) or issuer(s) and/or any other views or forecasts expressed herein accurately reflect theirpersonal view(s) and that no part of their compensation was, is or will be directly or indirectly related to the specificrecommendation(s) or views contained in this research report: Sachin Sheth, Tejas Mehta and Todd DunivantImportant disclosuresStock ratings and basis for financial analysisHSBC believes that investors utilise various disciplines and investment horizons when making investment decisions, whichdepend largely on individual circumstances such as the investors existing holdings, risk tolerance and other considerations.Given these differences, HSBC has two principal aims in its equity research: 1) to identify long-term investment opportunitiesbased on particular themes or ideas that may affect the future earnings or cash flows of companies on a 12 month time horizon;and 2) from time to time to identify short-term investment opportunities that are derived from fundamental, quantitative,technical or event-driven techniques on a 0-3 month time horizon and which may differ from our long-term investment rating.HSBC has assigned ratings for its long-term investment opportunities as described below.This report addresses only the long-term investment opportunities of the companies referred to in the report. As and whenHSBC publishes a short-term trading idea the stocks to which these relate are identified on the website atwww.hsbcnet.com/research. Details of these short-term investment opportunities can be found under the Reports section of thiswebsite.HSBC believes an investors decision to buy or sell a stock should depend on individual circumstances such as the investorsexisting holdings and other considerations. Different securities firms use a variety of ratings terms as well as different ratingsystems to describe their recommendations. Investors should carefully read the definitions of the ratings used in each researchreport. In addition, because research reports contain more complete information concerning the analysts views, investorsshould carefully read the entire research report and should not infer its contents from the rating. In any case, ratings should notbe used or relied on in isolation as investment advice.Rating definitions for long-term investment opportunitiesStock ratingsHSBC assigns ratings to its stocks in this sector on the following basis:For each stock we set a required rate of return calculated from the cost of equity for that stocks domestic or, as appropriate,regional market established by our strategy team. The price target for a stock represents the value the analyst expects the stockto reach over our performance horizon. The performance horizon is 12 months. For a stock to be classified as Overweight, thepotential return, which equals the percentage difference between the current share price and the target price, including theforecast dividend yield when indicated, must exceed the required return by at least 5 percentage points over the next 12 months(or 10 percentage points for a stock classified as Volatile*). For a stock to be classified as Underweight, the stock must beexpected to underperform its required return by at least 5 percentage points over the next 12 months (or 10 percentage pointsfor a stock classified as Volatile*). Stocks between these bands are classified as Neutral.Our ratings are re-calibrated against these bands at the time of any material change (initiation of coverage, change of volatilitystatus or change in price target). Notwithstanding this, and although ratings are subject to ongoing management review,expected returns will be permitted to move outside the bands as a result of normal share price fluctuations without necessarilytriggering a rating change.8Oct-07Oct-08Oct-09Oct-10Oct-11Oct-1245%16%ICICI Bank (ICICIBC IN)Commercial Banksabc26 October 2012*A stock will be classified as volatile if its historical volatility has exceeded 40%, if the stock has been listed for less than 12months (unless it is in an industry or sector where volatility is low) or if the analyst expects significant volatility. However,stocks which we do not consider volatile may in fact also behave in such a way. Historical volatility is defined as the pastmonths average of the daily 365-day moving average volatilities. In order to avoid misleadingly frequent changes in rating,however, volatility has to move 2.5 percentage points past the 40% benchmark in either direction for a stocks status to change.Rating distribution for long-term investment opportunitiesAs of 26 October 2012, the distribution of all ratings published is as follows:Overweight (Buy)(28% of these provided with Investment Banking Services)Neutral (Hold)Underweight (Sell)39%(26% of these provided with Investment Banking Services)(20% of these provided with Investment Banking Services)Share price and rating changes for long-term investment opportunitiesICICI Bank (ICBK.BO) Share Price performance INR Vs HSBC rating history Recommendation & price target historyFromOverweight (V)ToOverweightDate01 August 201012621062862662462262Source: HSBCTarget PricePrice 1Price 2Price 3Price 4Price 5Price 6Price 7Price 8Price 9Price 10Price 11Price 12Price 13Source: HSBCValue980.001099.001025.001180.001110.001350.001300.001230.001127.001234.001159.001262.001257.00Date01 November 200927 November 200922 January 201028 April 201001 August 201029 October 201029 April 201131 July 201101 November 201131 January 201230 April 201227 July 201219 September 2012912345678910111234ICICI Bank (ICICIBC IN)Commercial Banks26 October 2012HSBC & Analyst disclosuresDisclosure checklistabcCompanyICICI BANKTickerICBK.BORecent price1087.15Price Date25-Oct-2012Disclosure1, 2, 4, 5, 6, 7, 9, 11Source: HSBCHSBC* has managed or co-managed a public offering of securities for this company within the past 12 months.HSBC expects to receive or intends to seek compensation for investment banking services from this company in the next3 months.At the time of publication of this report, HSBC Securities (USA) Inc. is a Market Maker in securities issued by thiscompany.As of 30 September 2012 HSBC beneficially owned 1% or more of a class of common equity securities of this company.As of 31 August 2012, this company was a client of HSBC or had during the preceding 12 month period been a client ofand/or paid compensation to HSBC in respect of investment banking services.As of 31 August 2012, this company was a client of HSBC or had during the preceding 12 month period been a client ofand/or paid compensation to HSBC in respect of non-investment banking securities-related services.As of 31 August 2012, this company was a client of HSBC or had during the preceding 12 month period been a client ofand/or paid compensation to HSBC in respect of non-securities services.A covering analyst/s has received compensation from this company in the past 12 months.A covering analyst/s or a member of his/her household has a financial interest in the securities of this company, asdetailed below.A covering analyst/s or a member of his/her household is an officer, director or supervisory board member of thiscompany, as detailed below.At the time of publication of this report, HSBC is a non-US Market Maker in securities issued by this company and/or insecurities in respect of this company Sachin Sheth has a long position in the shares of ICICI Bank.Analysts, economists, and strategists are paid in part by reference to the profitability of HSBC which includes investmentbanking revenues.For disclosures in respect of any company mentioned in this report, please see the most recently published report on thatcompany available at www.hsbcnet.com/research.* HSBC Legal Entities are listed in the Disclaimer below.Additional disclosuresThis report is dated as at 26 October 2012.All market data included in this report are dated as at close 26 October 2012, unless otherwise indicated in the report.HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with itsResearch business. HSBCs analysts and its other staff who are involved in the preparation and dissemination of Researchoperate and have a management reporting line independent of HSBCs Investment Banking business. Information Barrierprocedures are in place between the Investment Banking and Research businesses to ensure that any confidential and/orprice sensitive information is handled in an appropriate manner.As of 30 September 2012, HSBC and/or its affiliates (including the funds, portfolios and investment clubs in securitiesmanaged by such entities) either, directly or indirectly, own or are involved in the acquisition, sale or intermediation of,1% or more of the total capital of the subject companies securities in the market for the following Company(ies) :ICICIBANK10ICICI Bank (ICICIBC IN)Commercial Banks26 October 2012Disclaimer* Legal entities as at 8 August 2012UAE HSBC Bank Middle East Limited, Dubai; HK The Hongkong and Shanghai Banking CorporationLimited, Hong Kong; TW HSBC Securities (Taiwan) Corporation Limited; CA HSBC Bank Canada, Toronto;HSBC Bank, Paris Branch; HSBC France; DE HSBC Trinkaus & Burkhardt AG, Dsseldorf; 000 HSBC Bank(RR), Moscow; IN HSBC Securities and Capital Markets (India) Private Limited, Mumbai; JP HSBCSecurities (Japan) Limited, Tokyo; EG HSBC Securities Egypt SAE, Cairo; CN HSBC Investment Bank AsiaLimited, Beijing Representative Office; The Hongkong and Shanghai Banking Corporation Limited, SingaporeBranch; The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch; The Hongkongand Shanghai Banking Corporation Limited, Seoul Branch; HSBC Securities (South Africa) (Pty) Ltd,Johannesburg; HSBC Bank plc, London, Madrid, Milan, Stockholm, Tel Aviv; US HSBC Securities (USA) Inc,New York; HSBC Yatirim Menkul Degerler AS, Istanbul; HSBC Mxico, SA, Institucin de Banca Mltiple,abcIssuer of reportHSBC Securities and Capital Markets(India) Private LimitedRegistered Office52/60 Mahatma Gandhi RoadFort, Mumbai 400 001, IndiaTelephone: +91 22 2267 4921Fax: +91 22 2263 1983Website: www.research.hsbc.comGrupo Financiero HSBC; HSBC Bank Brasil SA Banco Mltiplo; HSBC Bank Australia Limited; HSBC BankArgentina SA; HSBC Saudi Arabia Limited; The Hongkong and Shanghai Banking Corporation Limited, NewZealand Branch incorporated in Hong Kong SARThis document has been issued by HSBC Securities and Capital Markets (India) Private Limited (HSBC) for the information of its customers only. HSBCSecurities and Capital Markets (India) Private Limited is regulated by the Securities and Exchange Board of India. If it is received by a customer of an affiliateof HSBC, its provision to the recipient is subject to the terms of business in place between the recipient and such affiliate. This document is not and should notbe construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. HSBC has based this document on informationobtained from sources it believes to be reliable but which it has not independently verified; HSBC makes no guarantee, representation or warranty and acceptsno responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the Research Division of HSBC only and are subject tochange without notice. 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The Hongkong and Shanghai Banking Corporation Limited makes no representations that the products orservices mentioned in this document are available to persons in Hong Kong or are necessarily suitable for any particular person or appropriate in accordance with locallaw. All inquiries by such recipients must be directed to The Hongkong and Shanghai Banking Corporation Limited. In Korea, this publication is distributed by TheHongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch (HBAP SLS) for the general information of professional investors specified in Article9 of the Financial Investment Services and Capital Markets Act (“FSCMA”). This publication is not a prospectus as defined in the FSCMA. It may not be furtherdistributed in whole or in part for any purpose. HBAP SLS is regulated by the Financial Services Commission and the Financial Supervisory Service of Korea.In Canada, this document has been distributed by HSBC Bank Canada and/or its affiliates. Where this document contains market updates/overviews, or similar materials(collectively deemed “Commentary” in Canada although other affiliate jurisdictions may term “Commentary” as either “macro-research” or “research”), the Commentaryis not an offer to sell, or a solicitation of an offer to sell or subscribe for, any financial product or instrument (including, without limitation, any currencies, securities,commodities or other financial instruments). Copyright 2012, HSBC Securities and Capital Markets (India) Private Limited, ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in aretrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission ofHSBC Securities and Capital Markets (India) Private Limited. MICA (P) 038/04/2012, MICA (P) 063/04/2012 and MICA (P) 206/01/201211