INTERNATIONAL FINANCIAL MANAGEMENT

REPORT On ICICI BANK: ANALYSIS ON ADR AND UNDERLYING STOCK PRICE

Submitted to

Prof. M.V.S KAMESHWAR RAO

Professor-International Financial Management, GSIB, Visakhapatnam.

Submitted By 1226110108 1226110115 1226110131 1226110132 1226110137 1226110138 AsthaPaliwal Harish Kumar Bobbadi RamakrishnaKhandelwal RongaliSucharita Sayan Das ShaikFeroz Mohammad Saleem

MBA (IB), GSIB 2010-12

ICICI Bank: Analysis on ADR and underlying stock price

ICICI Bank Introduction:

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. The Bank has a network of 2,533 branches and 6,810 ATMs in India, and has a presence in 19 countries, including India.

ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

ICICI Bank is a custodian to the largest number of ADR/ GDR issuance from India. They are actively involved in committee instituted by regulators for policy formulation and operative guidelines on two-way fungibility. Services offered: Delivery and settlement of underlying shares upon cancellation of ADR/ GDR. Re-issuance of ADR/ GDR Reporting of corporate benefit entitlements in cash or kind.

2|Page

ICICI Bank: Analysis on ADR and underlying stock price

Their core strengths: SWIFT based information exchange system Local custodians for majority of actively traded ADR/ GDR issues by the Indian companies facilitating instant credit of underlying shares into Custodial account in India. Quick head room information Quick processing of cancellation and re-issuance requests through fully integrated and automated systems. An American Depositary Receipt (ADR) is a negotiable security that represents the underlying securities of a non-U.S. company that trades in the U.S. financial markets. Individual shares of the securities of the foreign company represented by an ADR are called American Depositary Shares (ADS). The stock of many non-U.S. companies trade on U.S. stock exchanges through the use of ADRs. ADRs are denominated, and pay dividends, in U.S. dollars, and may be traded like shares of stock of U.S.-domiciled companies. The first ADR was introduced by J.P. Morgan in 1927 for the British retailer Selfridges. There are currently four major commercial banks that provide depositary bank services: BNY Mellon, J.P. Morgan, Citi, and Deutsche Bank. When a company establishes an ADR program, it must decide what exactly it wants out of the program, and how much time, effort, and other resources they are willing to commit. For this reason, there are different types of programs, or facilities, that a company can choose. Unsponsored ADRs Unsponsored shares trade on the over-the-counter (OTC) market. These shares are issued in accordance with market demand, and the foreign company has no formal agreement with a depositary bank. Unsponsored ADRs are often issued by more than one depositary bank. Each depositary services only the ADRs it has issued.

3|Page

ICICI Bank: Analysis on ADR and underlying stock price

Due to a recent SEC rule change making it easier to issue Level I depositary receipts, both sponsored and unsponsored, hundreds of new ADRs have been issued since the rule came into effect in October 2008. The majority of these were unsponsored Level I ADRs and now approximately half of all ADR programs in existence are unsponsored. Sponsored Level I ADRs ("OTC" facility) Level 1 depositary receipts are the lowest level of sponsored ADRs that can be issued. When a company issues sponsored ADRs, it has one designated depositary who also acts as its transfer agent. A majority of American depositary receipt programs currently trading are issued through a Level 1 program. This is the most convenient way for a foreign company to have its equity traded in the United States. Level 1 share can only be traded on the OTC market and the company has minimal reporting requirements with the U.S. Securities and Exchange Commission (SEC). The company is not required to issue quarterly or annual reports in compliance with U.S. GAAP. However, the company must have a security listed on one or more stock exchange in a foreign jurisdiction and must publish in English on its website its annual report in the form required by the laws of the country of incorporation, organization or domicile. Companies with shares trading under a Level 1 program may decide to upgrade their program to a Level 2 or Level 3 program for better exposure in the United States markets. Sponsored Level II ADRs ("Listing" facility) Level 2 depositary receipt programs are more complicated for a foreign company. When a foreign company wants to set up a Level 2 program, it must file a registration statement with the U.S. SEC and is under SEC regulation. In addition, the company is required to file a Form 20-F annually. Form 20-F is the basic equivalent of an annual report (Form 10-K) for a U.S. company. In their filings, the company is required to follow U.S. GAAP standards or IFRS as published by the IASB.

4|Page

ICICI Bank: Analysis on ADR and underlying stock price

The advantage that the company has by upgrading their program to Level 2 is that the shares can be listed on a U.S. stock exchange. These exchanges include the New York Stock Exchange (NYSE), NASDAQ, and the American Stock Exchange (AMEX). While listed on these exchanges, the company must meet the exchanges listing requirements. If it fails to do so, it may be delisted and forced to downgrade its ADR program.

Sponsored Level III ADRs ("Offering" facility) A Level 3 American Depositary Receipt program is the highest level a foreign company can sponsor. Because of this distinction, the company is required to adhere to stricter rules that are similar to those followed by U.S. companies. Setting up a Level 3 program means that the foreign company is not only taking steps to permit shares from its home market to be deposited into an ADR program and traded in the U.S.; it is actually issuing shares to raise capital. In accordance with this offering, the company is required to file a Form F-1, which is the format for an Offering Prospectus for the shares. They also must file a Form 20-F annually and must adhere to U.S. GAAP standards or IFRS as published by the IASB. In addition, any material information given to shareholders in the home market must be filed with the SEC through Form 6K. Foreign companies with Level 3 programs will often issue materials that are more informative and are more accommodating to their U.S. shareholders because they rely on them for capital. Overall, foreign companies with a Level 3 program set up are the easiest on which to find information. Examples include the Indian telephone company Vodafone (VOD), the Brazilian oil company Petrobras(PBR), and the Chinese technology company China Information Technology, Inc. (CNIT).

5|Page

ICICI Bank: Analysis on ADR and underlying stock price

ADR termination Most ADR programs are subject to possible termination. Termination of the ADR agreement will result in cancellation of all the depositary receipts, and a subsequent delisting from all exchanges where they trade. The termination can be at the discretion of the foreign issuer or the depositary bank, but is typically at the request of the issuer. There may be a number of reasons why ADRs terminate, but in most cases the foreign issuer is undergoing some type of reorganization or merger. Owners of ADRs are typically notified in writing at least thirty days prior to a termination. Once notified, an owner can surrender their ADRs and take delivery of the foreign securities represented by the Receipt, or do nothing. If an ADR holder elects to take possession of the underlying foreign shares, there is no guarantee the shares will trade on any US exchange. The holder of the foreign shares would have to find a broker who has trading authority in the foreign market where those shares trade. If the owner continues to hold the ADR past the effective date of termination, the depositary bank will continue to hold the foreign deposited securities and collect dividends, but will cease distributions to ADR owners. Usually up to one year after the effective date of the termination, the depositary bank will liquidate and allocate the proceeds to those respective clients. Many US brokerages can continue to hold foreign stock, but may lack the ability to trade it overseas.

6|Page

ICICI Bank: Analysis on ADR and underlying stock price

SHARE HOLDER PATTERN ANALYSIS OF ICICI BANK (From March 2004 to March 2011)

7|Page

ICICI Bank: Analysis on ADR and underlying stock price

8|Page

ICICI Bank: Analysis on ADR and underlying stock price

9|Page

ICICI Bank: Analysis on ADR and underlying stock price

10 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

11 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

12 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

13 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

14 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

15 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

16 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

TOTAL FOREIGN Vs DOMESTIC SHARE HOLDING

17 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

PRICE DIFFRENTIAL OF ADR AND UNDERLYING PRICES

(ICICI BANK- NYQ: IBN; BSE: ICICIBANK)

Data collection for the ADR prices and the underlying prices of shares of ICICI Bank is done from NYSE and BSE respectively. Prices of ICICI shares from July 2001 to December 2010 are taken into account for the calculation of price differential of ADR and the underlying share prices. [Exhibit-1] Price Differential is calculated in the following manner:

18 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price 1. Monthly data of ICICI share price in USD. 2. Monthly exchange rate (USD/INR) for the respective period. 3. Convert USD price into INR (Prices in USD*Exchange Rate) 4. Monthly data of ICICI Bank share price in India. 5. Difference between (3) and (4).

ICICI Bank ADR Prices In USD

80 70 60 50 40 30 20 10 0 July-2001 November March July November March July November March July November March July November March July November March July November March July November March July November March July November

19 | P a g e

1000

1200

1400

200

400

600

800

1000 July-2001 December May October March August January-04 June November April September February July December May October March August January-09 June November April September

1500

2000

2500

3000

ICICI Bank: Analysis on ADR and underlying stock price

500

Underlying Prices in INR

Price of ADR in INR [USD/INR]

July-2001 November March July November March July November March July November March July November March July November March July November March July November March July November March July November

20 | P a g e

10

20

30

40

50

60

1000

1200

1400

1600

ICICI Bank: Analysis on ADR and underlying stock price

200

400

600

800

USD/INR

Price Diff in INR

July-2001 December May October March August January-04 June November April September February July December May October March August January-09 June November April September

USD/INR

July-2001 November March July November March July November March July November March July November March July November March July November March July November March July November March July November

21 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price The charts given above show the movements of ICICI share prices in US market and Indian market as well. What we can see from the chart the US and Indian price of ICICI Bank share moves in tandem. The price differential also moves in the same manner. If the exchange rate had remain consistent or nearly stable and US India market moved in the same direction then the price differential chart would have shown the linear graph representing no change or little change in the prices. The exchange rate volatility and the market volatility brought the price differential to move ups-downs over a period. During the period from November 2007 to the start of January 2009 we have seen a continuous decline in ICICI Bank share price [financial crisis]. It touched a decade high in October 2007 and fell tremendously. The US share price and Indian share price were going down and rupee was also appreciating. Therefore an ultimate decline in price differential as well.

ANALYSIS
NYSE BSE Return S.D. beta 0.0342 0.17375 2.079894 0.0291 0.140412 1.313749

The Beta () of a stock or portfolio is a number describing the relation of its returns with those of the financial market as a whole.It measures the part of the asset's statistical variance that cannot be removed by the diversification provided by the portfolio of many risky assets, because of the correlation of its returns with the returns of the other assets that are in the portfolio.Beta is also referred to as financial elasticity or correlated relative volatility, and can be referred to as a measure of the sensitivity of the asset's returns to market returns, its nondiversifiable risk, its systematic risk, or market risk. In the case of ICICI ADR the beta is 2.08 which indicate that a 1 percentage change in the market return will bring about a 2.08 percent change in the return of the ICICI ADR whereas in the Indian market (BSE) a similar price change brings a change of only 1.31 percent.

22 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

Existing SEBI, FEMA and RBI regulations on the ADRs/GDRs issue

Guidelines for ADR/GDR issues by the Indian Companies -Disinvestment of shares by the Indian companies in theoverseas market through issue of ADRs/GDRs Depository Receipts (DRs) are negotiable securities issued outside India by a Depository bank, on behalf of an Indian company, which represent the local Rupee denominated equity shares of the company held as deposit by a Custodian bank in India. DRs are traded on Stock Exchanges in the US, Singapore, Luxembourg, London, etc. DRs listed and traded in the US markets are known as American Depository Receipts (ADRs) and those listed and traded elsewhere are known as Global Depository Receipts (GDRs). In the Indian context, DRs are treated as FDI. Indian companies can raise foreign currency resources abroad through the issue of

ADRs/GDRs, in accordance with the Scheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 and guidelines issued by the Government of India thereunder from time to time. A company can issue ADRs / GDRs, if it is eligible to issue shares to person resident outside India under the FDI Scheme. However, an Indian listed company, which is not eligible to raise funds from the Indian Capital Market including a company which has been restrained from accessing the securities market by the Securities and Exchange Board of India (SEBI) will not be eligible to issue ADRs/GDRs. Unlisted companies, which have not yet accessed the ADR/GDR route for raising capital in the international market, would require prior or simultaneous listing in the domestic market, while seeking to issue such overseas instruments. Unlisted companies, which have already issued ADRs/GDRs in the international market, have to list in the domestic market on making profit or within three years of such issue of ADRs/GDRs, whichever is earlier. ADRs / GDRs are issued on the basis of the ratio worked out by the Indian company in consultation with the Lead Manager to the issue. The proceeds so raised have to be kept abroad till actually required in India. Pending repatriation or utilisation of the proceeds, the Indian company can invest the funds in:-

23 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price a. Deposits with or Certificate of Deposit or other instruments offered by banks who have been rated by Standard and Poor, Fitch, IBCA or Moody's, etc. and such rating not being less than the rating stipulated by the Reserve Bank from time to time for the purpose; b. Deposits with branches of Indian Authorised Dealers outside India; and c. Treasury bills and other monetary instruments with a maturity or unexpired maturity ofone year or less. There are no end-use restrictions except for a ban on deployment / investment of such funds in real estate or the stock market. There is no monetary limit up to which an Indian company can raise ADRs / GDRs. The ADR / GDR proceeds can be utilised for first stage acquisition of shares in the disinvestment process of Public Sector Undertakings / Enterprises and also in the mandatory second stage offer to the public in view of their strategic importance. Voting rights on shares issued under the Scheme shall be as per the provisions of Companies Act, 1956 and in a manner in which restrictions on voting rights imposed on ADR/GDR issues shall be consistent with the Company Law provisions. Voting rights in the case of banking companies will continue to be in terms of the provisions of the Banking Regulation Act, 1949 and the instructions issued by the Reserve Bank11 from time to time, as applicable to all shareholders exercising voting rights. Erstwhile OCBs which are not eligible to invest in India and entities prohibited buying / selling or deal in securities by SEBI will not be eligible to subscribe to ADRs / GDRs issued by Indian companies. The pricing of ADR / GDR issues including sponsored ADRs / GDRs should be made at a price determined under the provisions of the Scheme of issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 and guidelines issued by the Government of India and directions issued by the Reserve Bank, from time to time. Two-way Fungibility Scheme: A limited two-way Fungibility scheme has been put in place by the Government of India for ADRs / GDRs. Under this Scheme, a stock broker in India, registered with SEBI, can purchase shares of an Indian company from the market for conversion into ADRs/GDRs based on instructions received from overseas investors. Re-

24 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price issuance of ADRs / GDRs would be permitted to the extent of ADRs / GDRs which have been redeemed into underlying shares and sold in the Indian market. Sponsored ADR/GDR issue An Indian company can also sponsor an issue of ADR / GDR. Under this mechanism, the company offers its resident shareholders a choice to submit their shares back to the company so that on the basis of such shares, ADRs / GDRs can be issued abroad. The proceeds of the ADR / GDR issue is remitted back to India and distributed among the resident investors who had offered their Rupee denominated shares for conversion. These proceeds can be kept in Resident Foreign Currency (Domestic) accounts in India by the resident shareholders who have tendered such shares for conversion into ADRs / GDRs. RBI Guideline: 1. Divestment by shareholders of their holdings of Indian companies, in the overseas markets would be allowed through the mechanism of Sponsored ADR/GDR issue in respect of:a) Divestment by shareholders of their holdings of Indian companies listed inIndia; b) Divestment by shareholders of their holdings of Indian companies not listedin India but which are listed overseas. 2. The process of divestment would be initiated by such Indian companies whoseshares are being offered for divestment in the overseas market by sponsoringADR/GDR issues against the block of existing shares offered by the shareholders under the provisions of these guidelines. 3. Such a facility would be available pari-passu to all categories of shareholders, ofthe company whose shares are being sold in the ADR/GDR markets overseas.This would ensure that no class of shareholders gets a special dispensation. 4. The sponsoring company, whose shareholders propose to divest existing shares inthe overseas market through issue of ADRs/GDRs will give an option to all itsshareholders indicating the number of shares to be divested and the mechanismhow the price will be determined under the ADR/GDR norms. If the sharesoffered for divestment are more than the pre-specified number to be divested,shares would be accepted for divestment in proportion to existing holdings.

25 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price 5. The proposal for divestment of the existing shares in the ADR/GDR market wouldhave to be approved by a special resolution of the company whose shares are beingdivested. 6. The proceeds of the ADR/GDR issue raised abroad shall be repatriated into Indiawithin a period of one month of the closure of the issue. 7. Such ADR/GDR issues against existing shares arising out of the divestment wouldalso come within the purview of the existing SEBI Takeover Code if theADRs/GDRs are cancelled and the underlying shares are to be registered with thecompany as shareholders. 8. Divestment of existing shares of Indian companies in the overseas markets forissue of ADRs/GDRs would be reckoned as FDI. Such proposals would requireFIPB approval as also other approvals, if any, under the FDI policy. 9. Such divestment inducting foreign equity would also need to conform to the FDIsectorial policy and the prescribed sectorial cap as applicable. Accordingly

thefacility would not be available where the company whose shares are to be divestedis engaged in an activity where FDI is not permitted. 10. Each case would require the approval of FIPB for foreign equity induction throughoffer of existing shares under the ADR/GDR route. 11. Other mandatory approvals such as those under the Companies Act, etc. asapplicable would have to be obtained by the company prior to the ADR/GDRissue. 12. The issue related expenses (covering both fixed expenses like

underwritingcommissions, lead managers charges, legal expenses and reimbursable expenses)for public issue shall be subject to a ceiling of 4% in the case of GDRs and 7% inthe case of ADRs and 2% in case of private placements of ADRs/GDRs. Issueexpenses beyond the ceiling would need the approval of RBI. The issue

expensesshall be passed onto the shareholders participating in the sponsored issue on a pro-rata basis. 13. The shares earmarked for the sponsored ADR/GDR issue may be kept in anescrow account created for this purpose and in any case, the retention of shares insuch escrow account shall not exceed 3 months. 14. If the issues of ADR/GDR are made in more than one tranche, each tranche wouldhave to be treated as a separate transaction. 15. After completing the transactions, the companies would need to furnish fullparticulars thereof including amount raised through ADRs/GDRs, number ofADRs/GDRs issued

26 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price and the underlying shares offered, percentage of foreignequity level in the Indian company on account of issue of ADRs/GDRs, details ofissue parameters, details of repatriation, and other details to the Exchange ControlDepartment of the Reserve Bank of India, Central Office, Mumbai within 30 daysof completion of such transactions. 16. The tax provision under Section 115 AC of the Income Tax Act 1961, which isapplicable to non-resident investors for ADR/GDR offering against issue of

freshunderlying shares would extend to non-resident investors investing in foreignexchange in ADRs/GDRs issued against disinvested existing shares, in terms of therelevant provisions of the Income Tax Act, 1961 17. Resident shareholders divesting their holdings will be subject to Capital Gain taxprovisions applicable under the Income Tax Act 1961 i.e. Section 115 ACapplicable for non-residents would not extend to them.

Price changes Pre issue and Post issue.

The entire pre-Issue Equity Share capital comprising 356,261,048 Equity Shares of Company shall be locked in for a period of one year from the date of Allotment of Equity Shares in this Issue. Other than 80,750 equity shares held by employees pursuant to ESOP and 31,644,644 equity shares that have been held by WestBridge Capital Partners which is a registered FVCI and has held the Shares/convertible instrument for a period of more than one year. Our Directors and the Key Managerial Personnel who have been granted options or Equity Shares on the exercise of the options pursuant to ESOPs have confirmed to the company that they do not intend to sell any shares arising from such options for 3 months after the date of listing of the Equity Shares in this Issue. Other employees holding Equity Shares at the time of listing of Equity Shares on exercise of vested options may sell equity shares within the 3 month period after the listing of the Equity. 1.. The initial authorised share capital of Rs. 10,00,000 comprising 1,00,000 Equity Shares of Rs. 10 each was increased to Rs. 50,00,00,000 comprising 5,00,00,000 Equity Shares of Rs. 10 each pursuant to a resolution of the shareholders at an EGM held on March 26, 2002. 2. The authorised share capital of Rs. 50,00,00,000 comprising 5,00,00,000 Equity Shares of Rs. 10 each was increased to Rs 135,50,00,000 comprising 5,55,00,000 Equity Shares of Rs.

27 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price 10 each and 8,00,00,000 Preference Shares of Rs. 10 each pursuant to a resolution of the shareholders at an EGM held on August 22, 2002. 3. The authorised share capital of Rs. 135,50,00,000 comprising 5,55,00,000 Equity Shares of Rs. 10 each and 8,00,00,000 Preference Shares of Rs. 10 each was increased to Rs.300,00,00,000 comprising 5,55,00,000 Equity Shares of Rs. 10 each and 24,45,00,000 Preference Shares of Rs. 10 each pursuant to a resolution of the shareholders at an EGM held on July 16, 2003. 4. The authorised share capital of Rs. 300,00,00,000 comprising 5,55,00,000 Equity Shares of Rs. 10 each and 24,45,00,000 Preference Shares of Rs. 10 each was increased to Rs. 400,00,00,000 comprising 21,00,00,000 Equity Shares of Rs. 10 each and 19,00,00,000 Preference Shares of Rs. 10 each pursuant to a resolution of the shareholders at an AGM held on May 27, 2004. 5. The authorised share capital of Rs. 400,00,00,000 comprising 21,00,00,000 Equity Shares of Rs. 10 each and 19,00,00,000 Preference Shares of Rs. 10 each was increased to Rs. 450,00,00,000 comprising 25,00,00,000 Equity Shares of Rs. 10 each and 20,00,00,000 Preference Shares of Rs. 10 each pursuant to a resolution of the shareholders at an EGM held on August 2, 2004. 6. The authorised share capital of Rs. 450,00,00,000 comprising 25,00,00,000 Equity Shares of Rs. 10 each and 20,00,00,000 Preference Shares of Rs. 10 each was increased to Rs. 850,00,00,000 comprising 45,00,00,000 Equity Shares of Rs. 10 each and 40,00,00,000 Preference Shares of Rs. 10 each pursuant to a resolution of the shareholders at an EGM held on March 23, 2006. 7. The authorised share capital of Rs. 8,500,000,000 comprising 450,000,000 Equity Shares of Rs. 10 each and 400,000,000 Preference Shares of Rs. 10 each was altered to Rs. 8,500,000,000 comprising 600,000,000 Equity Shares of Rs. 10 each and 250,000,000 Preference Shares of Rs. 10 each pursuant to a resolution of the shareholders at an EGM held on November 22, 2006.

28 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

EXHIBIT 1: Table showing the share prices of ICICI bank (July 2001- Dec 2010)
ICICI Bank LTD (NYSE:IBN; BSE:ICICIBANK) Price in BSE 125.5 106.1 71.45 101.6 101 88 90.55 125.55 124 112.55 139.45 137.4 140.75 143.65 140.15 135.15 133.45 140.55 150.05 149.4 133.95 121.4 137.65 150.2 158.6 179.5 204.35 248.1 249.9 295.7 295.25 271.8 295.9 315.2 230.35 244.4 266.8

Months July-2001 August September October November December January-02 February March April May June July August September October November December January-03 February March April May June July August September October November December January-04 February March April May June July

ADR Prices 5.25 4.75 2.85 4.86 4.65 4.75 4.17 5.47 6.52 5.05 7.4 7 6.05 6.63 5.99 6.15 6 6.5 6.99 7.11 6.3 5.27 6.74 7.27 8.35 9.69 10.56 12.7 13.3 17.18 15.01 14.9 15.95 15.5 12.87 12.1 13.02

USD/INR 47.1238 47.1173 47.5835 48.0205 47.9816 47.9179 48.2693 48.6434 48.736 48.9127 49.005 48.9684 48.7734 48.6021 48.4638 48.3611 48.2689 48.1503 47.9468 47.7449 47.6655 47.3974 47.1262 46.7126 46.2325 45.9428 45.837 45.3806 45.5185 45.5477 45.4358 45.2431 45.0454 43.8331 45.0726 45.4418 45.9923

Price in INR 247.39995 223.807175 135.612975 233.37963 223.11444 227.610025 201.282981 266.079398 317.75872 247.009135 362.637 342.7788 295.07907 322.231923 290.298162 297.420765 289.6134 312.97695 335.148132 339.466239 300.29265 249.784298 317.630588 339.600602 386.041375 445.185732 484.03872 576.33362 605.39605 782.509486 681.991358 674.12219 718.47413 679.41305 580.084362 549.84578 598.819746

Price Diff 121.9 117.7072 64.16298 131.7796 122.1144 139.61 110.733 140.5294 193.7587 134.4591 223.187 205.3788 154.3291 178.5819 150.1482 162.2708 156.1634 172.427 185.0981 190.0662 166.3427 128.3843 179.9806 189.4006 227.4414 265.6857 279.6887 328.2336 355.4961 486.8095 386.7414 402.3222 422.5741 364.2131 349.7344 305.4458 332.0197

29 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

August September October November December January-05 February March April May June July August September October November December January-06 February March April May June July August September October November December January-07 February March April May June July August September October November December January-08 February March April 12.2 13.8 15.76 18.53 20.15 19.67 22.65 20.72 18.08 19.43 21.85 26.41 23.38 28.25 23.65 25.47 28.8 31.42 30.71 27.68 27.43 26.6 23.65 26.12 26.69 30.71 35.15 38.91 41.74 44.15 38.36 36.75 40.92 47.55 49.15 44.32 44.45 52.72 69.44 60.51 61.5 60.76 51.84 38.19 44.59 46.2944 46.0613 45.7551 45.0802 43.9682 43.6632 43.6393 43.646 43.7123 43.4529 43.5612 43.4903 43.5584 43.8665 44.7005 45.6247 45.6272 44.3436 44.26 44.376 44.8544 45.2521 45.9728 46.3598 46.4945 46.1274 45.4424 44.8248 44.5959 44.2813 44.1112 43.9856 42.2587 40.858 40.8052 40.4436 40.7807 40.3766 39.5451 39.4553 39.4736 39.3604 39.7033 40.3175 40.0162 564.79168 635.64594 721.100376 835.336106 885.95923 858.855144 988.430145 904.34512 790.318384 844.289847 951.81222 1148.57882 1018.39539 1239.22863 1057.16683 1162.06111 1314.06336 1393.27591 1359.2246 1228.32768 1230.35619 1203.70586 1087.25672 1210.91798 1240.93821 1416.57245 1597.30036 1744.13297 1861.43287 1955.0194 1692.10563 1616.4708 1729.226 1942.7979 2005.57558 1792.46035 1812.70212 2128.65435 2746.01174 2387.4402 2427.6264 2391.5379 2058.21907 1539.72533 1784.32236 269.45 286.05 299 340.2 370.75 360.6 380.75 393 360.2 392.05 421.55 536 481.7 600.35 497.7 537.15 584.7 609.15 615.1 589.25 590.25 536.05 487.4 554.05 596.5 699.05 776.85 871.45 890.4 940.5 831.9 853.1 865.9 918.9 955.3 927.05 884.65 1063.15 1257 1184.65 1232.4 1145.65 1090.95 770.1 879.4 295.3417 349.5959 422.1004 495.1361 515.2092 498.2551 607.6801 511.3451 430.1184 452.2398 530.2622 612.5788 536.6954 638.8786 559.4668 624.9111 729.3634 784.1259 744.1246 639.0777 640.1062 667.6559 599.8567 656.868 644.4382 717.5225 820.4504 872.683 971.0329 1014.519 860.2056 763.3708 863.326 1023.898 1050.276 865.4104 928.0521 1065.504 1489.012 1202.79 1195.226 1245.888 967.2691 769.6253 904.9224

30 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

May June July August September October November December January-09 February March April May June July August September October November December January-10 February March April May June July August September October November December 37.73 28.76 29.61 31.02 23.52 17.32 14.24 19.25 16.48 12.46 13.29 20.63 31.14 29.5 31.35 30.52 38.56 31.45 37.2 37.71 35.28 38.25 42.7 42.52 36.79 36.14 38.91 41.31 49.85 52.58 50.04 50.64 42.0058 42.816 42.8387 42.9693 45.5628 49.8598 49.7115 49.2867 49.4014 49.4232 51.8482 50.3933 48.7771 48.0427 48.6242 48.3762 48.5932 46.8809 46.6389 46.6908 46.0911 46.3804 45.4883 44.5171 45.8 46.6076 46.9017 46.5875 46.1871 44.5148 45.2001 45.6605 1584.87883 1231.38816 1268.45391 1332.90769 1071.63706 863.571736 707.89176 948.768975 814.135072 615.813072 689.062578 1039.61378 1518.91889 1417.25965 1524.36867 1476.44162 1873.75379 1474.40431 1734.96708 1760.71007 1626.09401 1774.0503 1942.35041 1892.86709 1684.982 1684.39866 1824.94515 1924.52963 2302.42694 2340.58818 2261.813 2312.24772 788.3 630.2 634.85 671.5 534.85 399.35 351.4 448.35 416.3 328.1 332.6 477.75 740.7 722 759.05 749.5 904.8 789.6 864.3 875.7 830.4 871.85 952.7 950.5 867.05 862 904.45 977.3 1110.35 1161.65 1143.65 1144.65 796.5788 601.1882 633.6039 661.4077 536.7871 464.2217 356.4918 500.419 397.8351 287.7131 356.4626 561.8638 778.2189 695.2597 765.3187 726.9416 968.9538 684.8043 870.6671 885.0101 795.694 902.2003 989.6504 942.3671 817.932 822.3987 920.4951 947.2296 1192.077 1178.938 1118.163 1167.598

31 | P a g e

ICICI Bank: Analysis on ADR and underlying stock price

REFERENCES

1. http://www.bseindia.com 2. http://in.yahoofinance.com
3. http://www.nasdaq.com/symbol/adr/historical

4. http://www.oanda.com/currency 5. http://www.rbi.org.in/ 6. http://www.sebi.gov.in/ 7. http://www.icicidirect.com/

32 | P a g e