ICICI Bank (ICICIBC IN) Strong improvement in asset quality

INSTITUTIONAL EQUITY RESEARCH ICICI Bank (ICICIBC IN) Strong improvement in asset quality INDIA FINANCIALS Quarterly Update Top takeaways from Q3FY19 ICICI Bank s reported Profit after tax of Rs 16bn, behind expectations mainly due to higher provisioning as bank increased its PCR by 690bps qoq to 76.3%. NII at Rs 68.8bn was better than our estimate of Rs 67.3bn on higher NIMs and decent credit growth. NIM increased by 7bps QoQ to 3.4% owing to interest received on NPA a/cs (18bps). Slippages declined to Rs 21bn (2Q19: Rs 31.2). This includes Rs 10.7bn from retail and Rs 10.2 bn from corporate (Rs 2.3 bn from NFB to existing NPA) and SME. GNPA ratio improved by 79bps QoQ to 7.75%, while NNPA improved by 107bps to 2.58%. Retail NPA includes agri slippage of Rs2bn. BB and below portfolio declined by Rs 29.7bn to Rs 188.1bn QoQ. This was mainly driven by upgrade to investment grade (Rs 30.3bn). Loan growth at 11.7% (2Q19: 12.8%). Domestic loans grew 14.4% driven by retail/sme at 21.6%/12.7%, corporate book remain flat. Overseas book declined 5.4% yoy. The bank bought portfolio worth Rs68.6bn from NBFCs/HFCs (Housing, auto & SME). Management comments / concall takeaway NIM: Interest collections from NPA added 17 18bps to NIM during the quarter. Overseas margin was up 72bps qoq on higher interest collection on non performing loans hence is likely to remain volatile in this fiscal year. Slippages: Higher slippages from retail loan were on account of Rs 2bn slippage from rural portfolio most likely a result of farm loan waiver. Slippages from this portfolio peaks during June and Dec quarter hence it s likely to be elevated in June 2019. As of Dec 2019 bank had Rs 188bn of Kisan credit card loans outstanding. NBFC/HFCs: As of 31 Dec 2018, NBFC & HFCs constituted 4.6% of total exposure. Bank is open to lending to NBFCs and HFCs and buying retail portfolio. RoE Guidance: Management continue to maintain 15% RoE target by June 2020, Management will take a call on medium term RoE target in coming quarter. Credit Cost Guidance: Management expect normalize credit cost from 1QFY20 NPA sale of Rs 21bn was on account of resolution and entire amount was recovered in cash Outlook and valuation: As ICICIBC enters the NPA recovery phase, factors such as high credit growth, recovery of NPAs, and margin improvement should trigger earnings upgrades. We expect earnings growth of 33%/+229% in FY19/20 translating into RoA of 0.53%/1.54%. At CMP, ICICIBC trades at 1.5x FY21 core ABVPS of Rs 178 (valuing subsidiaries at Rs 95). We maintain buy on inexpensive valuations and a visible turnaround in the NPA cycle with a target of Rs 450, valuing the bank at 2x our FY21 core ABVPS. 30 January 2019 BUY (Maintain) CMP RS 365/ TARGET RS 450 (+23%) COMPANY DATA O/S SHARES (MN) : 6441 MARKET CAP (RSBN) : 2234 MARKET CAP (USDBN) : 31.4 52 WK HI/LO (RS) : 383 / 257 LIQUIDITY 3M (USDMN) : 104.8 PAR VALUE (RS) : 2 SHARE HOLDING PATTERN, % Dec 18 Sep 18 Jun 18 FII / NRI : 44.4 46.8 48.4 FI / MF : 44.7 42.8 41.0 PUBLIC : 2.4 2.4 2.4 GOVT : 8.5 8.1 8.3 KEY FINANCIALS Rs mn FY19E FY20E FY21E Pre prov ROE (%) 22.2 23.7 24.6 Pre prov ROA (%) 2.8 2.8 2.9 Net Profit 45 149 183 % growth 33.3 228.9 23.0 EPS (Rs) 7.0 23.0 28.3 Core BVPS (Rs) 136 156 178 ROE (%) 4.2 13.0 14.3 P/E (x) 52.0 15.8 12.9 Adj P/BV (x) 1.88 1.65 1.44 CHANGE IN ESTIMATES Revised Est. % Revision Rs bn FY19E FY20E FY19E FY20E NII 265.7 313.1 4.2 2.7 PPP 236.9 270.2 7.2 3.9 Core PAT 45.2 148.8 27.0 6.3 EPS (Rs) 7.0 23.0 27.6 6.2 Manish Agarwalla (022 6246 4125) magarwalla@phillipcapital.in Sujal Kumar (022 6246 4114) sukumar@phillipcapital.in (Rs bn) Q3FY19 Q3FY18 yoy % Q2FY19 qoq % vs. expect. % Comments Net interest income 68.8 57.1 20.5 64.2 7.1 2.1 NII growth driven by higher NIM and credit growth NIM % 3.4 3.1 26bps 3.3 10bps 15bps Domestic NIM at 3.72%, International NIM at 0.77% Advances 5643 5054 11.7 5445 3.6 1.2 Credit growth driven by 21%/12% yoy growth in retail/sme advance Corporate advances 1361 1360 0.1 1383 1.6 Domestic flat yoy & overseas 5.4% yoy ( 13% yoy in USD) Retail advances 3332 2739 21.6 3118 6.9 Retail advances comprises of 59%, will continue to be the growth driver Deposit 6068 5174 17.3 5587 8.6 Term deposit grew 20% yoy, while CASA grew 15% yoy CASA 2994 2606 14.9 2836 5.6 CASA % 49.3 50.4 (110bps) 50.8 (150bps) Daily average CASA ratio stood at 46% vs 39.5% in FY15 Core fee 30.6 26.4 16.0 30.0 2.2 0.9 Fee income grew by 16% ; Retail fee constituted 73% of the Total fee Trading gain 4.8 0.7 625.8 2.0 144.4 Operating expenses 46.1 38.1 20.9 43.2 6.6 8.9 Employee exp. Increased 27% yoy, other opex increased 17% yoy Cost to income ratio % 44.9 43.3 155bps 46.1 (125bps) Cost income ratio decreased on higher revenue growth Provision 42.4 35.7 18.9 39.9 6.3 PAT 16.0 16.5 2.7 9.1 76.6 20.8 Net profit, below estimates due to higher provisions Slippage 20.9 43.8 52.3 31.2 32.9 Rs 10.7 bn from Retail RS 10.2 from Corporate /SME GNPA% 7.8 7.8 (7bps) 8.5 (79bps) NNPA% 2.6 4.2 (162bps) 3.7 (107bps) Provision coverage ratio is at 76.3% (+690 bps qoq) Tier 1 Capital % 15.1 15.0 10bps 15.4 (24bps) RWA increased by just 4.6% yoy Page 1 PHILLIPCAPITAL INDIA RESEARCH

Standalone result update (Rs mn) Q3FY19 Q3FY18 yoy growth Q2FY19 qoq growth Interest Earned 1,62,804 1,36,654 19.1 1,51,056 7.8 Interest Expended 94,052 79,601 18.2 86,881 8.3 Net interest income 68,753 57,053 20.5 64,176 7.1 Net interest margins 3.40 3.14 0.3 3.30 0.1 Non interest income 38,829 31,669 22.6 31,565 23.0 Total Income 1,07,581 88,721 21.3 95,741 12.4 Total operating expenses 46,117 38,144 20.9 43,244 6.6 Payroll costs 17,340 13,626 27.3 16,614 4.4 Others 28,777 24,518 17.4 26,630 8.1 Pre provision Profit 61,464 50,578 21.5 52,497 17.1 Provisions & Contingencies 42442 35696 18.9 39943 6.3 % Operating income 69.1 70.6 1.5 76.1 7.0 PBT 19,023 14,882 27.8 12,554 51.5 Provision for Taxes 2,974 1,621 283.5 3,465 14.2 % of PBT 15.6 10.9 26.5 27.6 12.0 Net Profit 16,049 16,502 2.7 9,089 76.6 Equity 12,884 12,836 0.4 12,870 0.1 EPS, Rs 2.5 2.6 3.1 1.4 76.4 Advances 56,43,078 50,53,869 11.7 54,44,866 3.6 Deposits 60,67,547 51,74,031 17.3 55,86,689 8.6 Advances / Deposits (%) 82.9 84.8 1.9 0.0 82.9 Gross NPAs 515915 460387 12.1 544890 5.3 Gross NPAs (%) 7.8 7.8 0.07 8.5 0.79 Net NPAs 162520 238103 31.7 220857 26.4 Net NPAs (%) 2.6 4.2 1.6 3.7 1.07 CAR Tier I 15.1 15.0 0.1 15.4 0.2 CAR Tier II 2.0 3.1 1.1 2.5 0.5 CAR Total 17.2 18.1 1.0 17.8 0.7 Source: Company, PhillipCapital India Research Page 2 PHILLIPCAPITAL INDIA RESEARCH

Sum of the parts valuation Share holding of ICICI Valuation per share Rs Valuation Criteria Value of Banking Business (1) 355 2x FY21E ABVPS of Rs178 ICICI Securities ltd 79.22% 15 20 times FY20E PAT of Rs6Bn ICICI Prudential life insurance company ltd 54.90% 44 20 times FY20E NBAP of Rs17.5bn+EV of Rs192bn ICICI Lombard General insurance company ltd 55.92% 28 25x FY20E PAT of Rs13bn ICICI AMC 51.00% 17 6% FY20E AUM of Rs3.7tln Housing finance business 100.00% 4 1.5x FY20E ABV of Rs17Bn Overseas banking subsidiaries 4 1x FY20E ABV of Rs28bn Value of subsidiary (2) 112 Less: Holding company discount @ 15% 17 Total (1) + (2) 451 Source: PhillipCapital India Research Stressed asset pool (Rs bn) 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Watch list 275 190 204 196 191 47 44 33 Standard restructured 64 43 24 20 18 16 14 14 4 SDR 6 9 15 10 4 0 0 0 0 Mgt change (outside SDR) 0 0 0 17 6 2 2 0 0 5:25 9 9 2 2 2 14 13 13 20 S4A 0 3 4 3 6 6 6 6 6 Non funded exposure to stress loan 16 19 21 21 22 49 48 47 51 Borrower with o/s > Rs1bn* na na na na na na 54 46 57 Borrower with o/s < Rs1bn* na na na na na na 67 59 51 Total 370 274 270 268 249 133 250 218 188 % of Gross customer asset 7.3 5.3 5.2 4.9 4.4 2.3 4.3 3.7 3.0 *erstwhile watch list included Source: Company, PhillipCapital India Research. Page 3 PHILLIPCAPITAL INDIA RESEARCH

Financials Income Statement Y/E Mar, Rs bn FY18 FY19e FY20e FY21e Interest on Loans 409 476 557 650 Interest on Investments 116 127 141 156 Others 25 26 27 28 Total Interest Earned 550 628 724 833 Total Interest Expended 319 363 411 470 Net Interest Income 230 266 313 364 Total non interest income 174 147 155 172 Total Income 404 413 468 536 Personnel Expenses 59 67 75 83 Other Expenses 98 109 123 139 Total Op expenses 157 176 198 222 Net Inc (Loss) before prov 247 237 270 314 Provision & contingencies 177 177 66 63 Net Inc (Loss) before tax 74 60 204 251 Provision for Income Tax 7 15 55 68 Net Profit 68 45 149 183 Balance Sheet Y/E Mar, Rs bn FY18 FY19e FY20e FY21e Assets Cash & Bal with RBI 842 900 964 1,032 Loans, Adv & Int accrued 5,124 5,841 6,717 7,789 Investments 2,093 2,312 2,558 2,832 Fixed Assets (Net) 79 83 87 91 Other assets 654 648 710 734 Total Assets 8,792 9,785 11,036 12,479 Liabilities Share capital 13 13 13 13 Reserves and Surplus 1,039 1,069 1,186 1,338 Preference capital 4 4 4 4 Hybrid Capital 50 53 54 60 Debt 333 367 403 444 Borrowing 1,442 1,586 1,744 1,919 Total Deposits 5,642 6,412 7,334 8,389 Other liab incld prov 270 283 298 313 Total Liabilities 8,792 9,785 11,036 12,479 Source: Company, PhillipCapital India Research Estimates Valuation Ratios FY18 FY19e FY20e FY21e Earnings and Valuation Ratios Pre provision Operating RoAE (%) 24.1 22.2 23.7 24.6 RoAE (%) 6.6 4.2 13.0 14.3 Pre provision Operating ROA (%) 3.0 2.5 2.6 2.7 RoAB (%) 0.9 0.5 1.5 1.7 EPS (Rs.) 10.5 7.0 23.0 28.3 Dividend per share (Rs.) 1.5 2.0 4.0 4.0 Book Value (Rs.) 164 168 186 209 Core Adj BV (Rs.) 117 136 156 178 Revenue Analysis Interest income on IBA (%) 7.3 7.3 7.5 7.6 Interest cost on IBL (%) 4.6 4.6 4.6 4.6 NIM on IBA / AWF (%) 3.0 3.1 3.2 3.3 Core fee Inc / AWF (%) 1.5 1.5 1.5 1.5 Portfolio gains / Total Inc (%) 16.7 3.8 1.7 1.5 Op.Exp / TI (%) 45.3 44.2 43.0 42.1 Op.Exp / AWF (%) 2.1 2.1 2.1 2.0 Employee exps / Op exps (%) 37.7 37.8 37.7 37.6 Tax / Pre tax earnings (%) 8.8 25.0 27.0 27.0 Asset Quality GNPAs / Gr Adv (%) 8.9 7.3 6.5 5.9 NNPAs / Net Adv (%) 4.8 2.3 1.8 1.7 Growth Ratio Loans (%) 10.4 14.0 15.0 16.0 Investments (%) 25.1 10.5 10.6 10.7 Deposits (%) 14.4 13.7 14.4 14.4 Networth (%) 5.2 2.8 10.9 12.6 Net Int Income (%) 5.9 15.4 17.9 16.1 Non fund based income (%) 6.8 13.8 11.2 11.8 Non Int Exp (%) 6.4 12.1 12.4 12.2 Profit Before Tax (%) (34.1) (18.9) 237.9 23.0 Net profit (%) (30.8) (33.3) 228.9 23.0 Asset / Liability Profile Avg CASA/ Deposits (%) 50.8 51.3 51.2 51.1 Avg Adv / Avg Dep (%) 83.2 82.3 83.8 85.5 Avg Invst / Avg Dep (%) 35.6 36.6 35.4 34.3 Incr Adv / Deposits (%) 67.9 93.1 95.1 101.5 Avg Cash / Avg Dep (%) 15.1 14.5 13.6 12.7 Capital Adequacy Ratio: 18.4 17.5 17.3 17.4 Tier I (%) 15.9 15.0 14.9 14.9 CET1 (%) 14.4 13.6 13.5 13.6 NNPAs to Equity (%) 26.4 14.1 11.5 10.9 Page 4 PHILLIPCAPITAL INDIA RESEARCH

Stock Price, Price Target and Rating History 400 350 B (TP 405) B (TP 400) 300 B (TP 340) B (TP 336)B (TP 343) B (TP 400) B (TP 400) B (TP 364) B (TP 364) 250 N (TP 265) N (TP 265) 200 150 100 J 16 M 16M 16 J 16 A 16 S 16 N 16 D 16 J 17 M 17 B (TP 340) J 17 A 17 S 17 N 17 D 17 J 18 M 18M 18 J 18 J 18 S 18 N 18 D 18 Rating Methodology We rate stock on absolute return basis. Our target price for the stocks has an investment horizon of one year. Rating Criteria Definition BUY >= +15% Target price is equal to or more than 15% of current market price NEUTRAL 15% > to < +15% Target price is less than +15% but more than 15% SELL <= 15% Target price is less than or equal to 15%. Page 5 PHILLIPCAPITAL INDIA RESEARCH

Disclosures and Disclaimers PhillipCapital (India) Pvt. Ltd. has three independent equity research groups: Institutional Equities, Institutional Equity Derivatives, and Private Client Group. This report has been prepared by Institutional Equities Group. The views and opinions expressed in this document may, may not match, or may be contrary at times with the views, estimates, rating, and target price of the other equity research groups of PhillipCapital (India) Pvt. Ltd. This report is issued by PhillipCapital (India) Pvt. Ltd., which is regulated by the SEBI. PhillipCapital (India) Pvt. Ltd. is a subsidiary of Phillip (Mauritius) Pvt. Ltd. References to "PCIPL" in this report shall mean PhillipCapital (India) Pvt. Ltd unless otherwise stated. This report is prepared and distributed by PCIPL for information purposes only, and neither the information contained herein, nor any opinion expressed should be construed or deemed to be construed as solicitation or as offering advice for the purposes of the purchase or sale of any security, investment, or derivatives. The information and opinions contained in the report were considered by PCIPL to be valid when published. The report also contains information provided to PCIPL by third parties. The source of such information will usually be disclosed in the report. Whilst PCIPL has taken all reasonable steps to ensure that this information is correct, PCIPL does not offer any warranty as to the accuracy or completeness of such information. Any person placing reliance on the report to undertake trading does so entirely at his or her own risk and PCIPL does not accept any liability as a result. Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily an indication of future performance. This report does not regard the specific investment objectives, financial situation, and the particular needs of any specific person who may receive this report. Investors must undertake independent analysis with their own legal, tax, and financial advisors and reach their own conclusions regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realised. Under no circumstances can it be used or considered as an offer to sell or as a solicitation of any offer to buy or sell the securities mentioned within it. The information contained in the research reports may have been taken from trade and statistical services and other sources, which PCIL believe is reliable. PhillipCapital (India) Pvt. Ltd. or any of its group/associate/affiliate companies do not guarantee that such information is accurate or complete and it should not be relied upon as such. Any opinions expressed reflect judgments at this date and are subject to change without notice. Important: These disclosures and disclaimers must be read in conjunction with the research report of which it forms part. Receipt and use of the research report is subject to all aspects of these disclosures and disclaimers. Additional information about the issuers and securities discussed in this research report is available on request. Certifications: The research analyst(s) who prepared this research report hereby certifies that the views expressed in this research report accurately reflect the research analyst s personal views about all of the subject issuers and/or securities, that the analyst(s) have no known conflict of interest and no part of the research analyst s compensation was, is, or will be, directly or indirectly, related to the specific views or recommendations contained in this research report. Additional Disclosures of Interest: Unless specifically mentioned in Point No. 9 below: 1. The Research Analyst(s), PCIL, or its associates or relatives of the Research Analyst does not have any financial interest in the company(ies) covered in this report. 2. The Research Analyst, PCIL or its associates or relatives of the Research Analyst affiliates collectively do not hold more than 1% of the securities of the company (ies)covered in this report as of the end of the month immediately preceding the distribution of the research report. 3. The Research Analyst, his/her associate, his/her relative, and PCIL, do not have any other material conflict of interest at the time of publication of this research report. 4. The Research Analyst, PCIL, and its associates have not received compensation for investment banking or merchant banking or brokerage services or for any other products or services from the company(ies) covered in this report, in the past twelve months. 5. The Research Analyst, PCIL or its associates have not managed or co managed in the previous twelve months, a private or public offering of securities for the company (ies) covered in this report. 6. PCIL or its associates have not received compensation or other benefits from the company(ies) covered in this report or from any third party, in connection with the research report. 7. The Research Analyst has not served as an Officer, Director, or employee of the company (ies) covered in the Research report. 8. The Research Analyst and PCIL has not been engaged in market making activity for the company(ies) covered in the Research report. 9. Details of PCIL, Research Analyst and its associates pertaining to the companies covered in the Research report: Sr. no. Particulars Yes/No 1 Whether compensation has been received from the company(ies) covered in the Research report in the past 12 months for No investment banking transaction by PCIL 2 Whether Research Analyst, PCIL or its associates or relatives of the Research Analyst affiliates collectively hold more than 1% of No the company(ies) covered in the Research report 3 Whether compensation has been received by PCIL or its associates from the company(ies) covered in the Research report No 4 PCIL or its affiliates have managed or co managed in the previous twelve months a private or public offering of securities for the No company(ies) covered in the Research report 5 Research Analyst, his associate, PCIL or its associates have received compensation for investment banking or merchant banking or brokerage services or for any other products or services from the company(ies) covered in the Research report, in the last twelve months No Independence: PhillipCapital (India) Pvt. Ltd. has not had an investment banking relationship with, and has not received any compensation for investment banking services from, the subject issuers in the past twelve (12) months, and PhillipCapital (India) Pvt. Ltd does not anticipate receiving or intend to seek compensation for investment banking services from the subject issuers in the next three (3) months. PhillipCapital (India) Pvt. Ltd is not a market maker in the securities mentioned in this research report, although it, or its affiliates/employees, may have positions in, purchase or sell, or be materially interested in any of the securities covered in the report. Suitability and Risks: This research report is for informational purposes only and is not tailored to the specific investment objectives, financial situation or particular requirements of any individual recipient hereof. Certain securities may give rise to substantial risks and may not be suitable for certain investors. Each investor must make its own determination as to the appropriateness of any securities referred to in this research report based upon the legal, tax and accounting considerations applicable to such investor and its own investment objectives or strategy, its financial situation and its investing experience. The value of any security may be positively or adversely affected by changes in foreign exchange or interest rates, as well as by other financial, economic, or political factors. Past performance is not necessarily indicative of future performance or results. Page 6 PHILLIPCAPITAL INDIA RESEARCH

Sources, Completeness and Accuracy: The material herein is based upon information obtained from sources that PCIPL and the research analyst believe to be reliable, but neither PCIPL nor the research analyst represents or guarantees that the information contained herein is accurate or complete and it should not be relied upon as such. Opinions expressed herein are current opinions as of the date appearing on this material, and are subject to change without notice. Furthermore, PCIPL is under no obligation to update or keep the information current. Without limiting any of the foregoing, in no event shall PCIL, any of its affiliates/employees or any third party involved in, or related to computing or compiling the information have any liability for any damages of any kind including but not limited to any direct or consequential loss or damage, however arising, from the use of this document. Copyright: The copyright in this research report belongs exclusively to PCIPL. All rights are reserved. Any unauthorised use or disclosure is prohibited. No reprinting or reproduction, in whole or in part, is permitted without the PCIPL s prior consent, except that a recipient may reprint it for internal circulation only and only if it is reprinted in its entirety. Caution: Risk of loss in trading/investment can be substantial and even more than the amount / margin given by you. Investment in securities market are subject to market risks, you are requested to read all the related documents carefully before investing. You should carefully consider whether trading/investment is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. PhillipCapital and any of its employees, directors, associates, group entities, or affiliates shall not be liable for losses, if any, incurred by you. You are further cautioned that trading/investments in financial markets are subject to market risks and are advised to seek independent third party trading/investment advice outside PhillipCapital/group/associates/affiliates/directors/employees before and during your trading/investment. There is no guarantee/assurance as to returns or profits or capital protection or appreciation. PhillipCapital and any of its employees, directors, associates, and/or employees, directors, associates of PhillipCapital s group entities or affiliates is not inducing you for trading/investing in the financial market(s). Trading/Investment decision is your sole responsibility. You must also read the Risk Disclosure Document and Do s and Don ts before investing. Kindly note that past performance is not necessarily a guide to future performance. For Detailed Disclaimer: Please visit our website www.phillipcapital.in For U.S. persons only: This research report is a product of PhillipCapital (India) Pvt Ltd., which is the employer of the research analyst(s) who has prepared the research report. The research analyst(s) preparing the research report is/are resident outside the United States (U.S.) and are not associated persons of any U.S. regulated broker dealer and therefore the analyst(s) is/are not subject to supervision by a U.S. broker dealer, and is/are not required to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with U.S. rules or regulations regarding, among other things, communications with a subject company, public appearances, and trading securities held by a research analyst account. This report is intended for distribution by PhillipCapital (India) Pvt Ltd. only to "Major Institutional Investors" as defined by Rule 15a 6(b)(4) of the U.S. Securities and Exchange Act, 1934 (the Exchange Act) and interpretations thereof by the U.S. Securities and Exchange Commission (SEC) in reliance on Rule 15a 6(a)(2). If the recipient of this report is not a Major Institutional Investor as specified above, then it should not act upon this report and return the same to the sender. Further, this report may not be copied, duplicated, and/or transmitted onward to any U.S. person, which is not a Major Institutional Investor. In reliance on the exemption from registration provided by Rule 15a 6 of the Exchange Act and interpretations thereof by the SEC in order to conduct certain business with Major Institutional Investors, PhillipCapital (India) Pvt Ltd. has entered into an agreement with a U.S. registered broker dealer, Decker & Co, LLC. Transactions in securities discussed in this research report should be effected through Decker & Co, LLC or another U.S. registered broker dealer. If Distribution is to Australian Investors This report is produced by PhillipCapital (India) Pvt Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services Licence No. 246827). This report contains general securities advice and does not take into account your personal objectives, situation and needs. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately. PhillipCapital (India) Pvt. Ltd. Registered office: No. 1, 18th Floor, Urmi Estate, 95 Ganpatrao Kadam Marg, Lower Parel West, Mumbai 400013 Page 7 PHILLIPCAPITAL INDIA RESEARCH