Icici Bank (IBN) Risk Analysis

·The enhanced supervisory and compliance environment in the financial sector increases the risk of regulatory action against us, whether formal or informal. ·We may be subject to fines, restrictions or other sanctions for regulatory compliance failures, which may adversely affect our financial position or our ability to expand our activities. ·We and our employees are at risk of inquiries or investigations by regulatory and enforcement authorities, which may adversely affect our reputation, lead to increased regulatory scrutiny, cause us to incur additional costs or adversely affect our ability to conduct business. ·We are subject to the directed lending requirements of the Reserve Bank of India, which may also involve buying related certificates at a premium to meet the annual targets, and any shortfall in meeting these requirements may be required to be invested in Government of India schemes that yield low returns, thereby7 impacting our profitability. We may also experience a higher level of non-performing assets in our directed lending portfolio, which could adversely impact the quality of our loan portfolio, our business and the prices of our equity shares and ADSs.  ·We are subject to capital adequacy requirements stipulated by the Reserve Bank of India, including Basel III, as well as general market expectations regarding the level of capital adequacy large Indian private sector banks should maintain, and any inability to maintain adequate capital due to changes in regulations, a lack of access to capital markets, or otherwise may impact our ability to grow and support our businesses. ·We are subject to liquidity requirements of the Reserve Bank of India as well as those of banking regulators in our overseas locations, and any inability to maintain adequate liquidity due to changes in regulations, a lack of access to capital markets, or otherwise may impact our ability to grow and support our businesses. ·Changes in the regulation and structure of the financial markets in India may adversely impact our business. ·The opportunities for growth in our international operations and our ability to repatriate capital from these operations may be limited by the local regulatory environments. ·Our subsidiaries are subject to supervision and regulation by various Indian financial sector regulators such as the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority of India and the Pension Fund Regulatory and Development Authority. ·Adoption of a different basis of accounting or new accounting standards may result in changes in our reported financial position and results of operations for future and prior periods.

·If the level of our non-performing assets increases and the overall quality of our loan portfolio deteriorates, our business will suffer. ·Our loan portfolio includes exposures such as long-term project finance loans, real-estate-linked loans and commodity sector loans, which are particularly vulnerable to risks such as completion risk, commodity price cycle risk and other related risks. ·We have a concentration of loans to certain customers, borrower groups and sectors, and if a substantial portion of these loans become non-performing, the overall quality of our loan portfolio, our business and the prices of our equity shares and ADSs could be adversely affected. ·The value of our collateral may decrease or we may experience delays in enforcing our collateral when borrowers default on their obligations to us, which may result in failure to recover the expected value of collateral security exposing us to a potential loss. ·Our banking and trading activities are particularly vulnerable to interest rate risk and movements in interest rates could adversely affect our net interest margin, the value of our fixed-income portfolio, our income from treasury operations, the quality of our loan portfolio and our financial performance. ·Our inability to effectively manage credit, market or liquidity risk and inaccuracy of our valuation models and accounting estimates may have an adverse effect on our earnings, capitalization, credit ratings and cost of funds. ·Our funding is primarily short-term and if depositors do not roll over deposited funds upon maturity, our business could be adversely affected.8  ·A determination against us in respect of disputed tax assessments may adversely impact our financial performance. ·Negative publicity could damage our reputation and adversely impact our business and financial results and the prices of our equity shares and ADSs. ·The exposures of our international branches and banking subsidiaries could generally affect our business, financial condition and results of operations. ·Entry into new businesses or rapid growth in existing loan portfolios may expose us to increased risks that may adversely affect our business. ·Commission, exchange and brokerage income, profit on foreign exchange transactions and other sources of fee income are important elements of our profitability, and regulatory changes or changes in market conditions could cause these income streams to decline and adversely impact our financial performance. ·Our industry is very competitive, and our strategy depends on our ability to compete effectively. ·There is operational risk associated with the financial industry, which, when realized, may have an adverse impact on our business. ·Our failure to establish, maintain and apply adequate internal controls over financial reporting could have a material adverse effect on our reputation, business, financial condition or results of operations. ·We and our customers are exposed to fluctuations in foreign exchange rates. ·We may seek opportunities for growth through acquisitions, divest our existing businesses, or be required to undertake mergers by the Reserve Bank of India and could face integration and other acquisitions risks. ·We depend on the accuracy and completeness of information about customers and counterparties. ·We are involved in various litigations. Any final judgment awarding material damages against us could have a material adverse impact on our financial performance and the prices of our equity shares and ADSs. ·We continue to expand our branch network and any inability to use these branches productively may have an adverse impact on our growth and profitability. ·We depend on the knowledge and skills of our senior management. Any inability to attract and retain them and other talented professionals or any loss of senior management or other talented professionals may adversely impact our business.

A prolonged slowdown in economic growth in India could cause our business to suffer. 10 We are heavily dependent upon the state of the Indian economy, and a slowdown in growth in the Indian economy could adversely affect our business, our borrowers, our counterparties and other constituents, especially if such a slowdown was to be prolonged. India’s gross domestic product is estimated to have grown by 7.6% in fiscal 2026 (as per the Second Advance Estimates of the National Statistical Office), compared with the 7.1% in fiscal 2025. An economic slowdown and a general decline in business activity in India could impose stress on our borrowers’ financial soundness and profitability and thus expose us to increased credit risk. Economic growth in India is also influenced by inflation, interest rates, external trade and capital flows. The level of inflation or depreciation of the Indian rupee may limit monetary easing or cause monetary policy tightening. Any increase in inflation, due to increase in domestic food prices or global prices of commodities, including crude oil, the impact of currency depreciation on the prices of imported commodities and additional pass through of higher fuel prices to consumers, or otherwise, may result in a tightening of monetary policy. After keeping the policy rate unchanged for two years, the monetary policy committee entered into an easing cycle, from February 2025 onwards, by a cumulative amount of 125 basis-points reduction in policy rate, of which 100 basis-points were reduced in fiscal 2026, and reduced the cash reserve ratio by 100 basis-points from 4.0% to 3.0%, implemented in four equal tranches of 25 basis points on September 6, October 4, November 1 and November 29, 2025. The policy stance was briefly changed to ‘accommodative’ in April 2025 and then changed back to ‘neutral’ in June 2025 and has been unchanged since. Daily average banking system liquidity for fiscal 2026 was at a surplus of approximately Rs. 1,793 billion. In fiscal 2026, the Reserve Bank of India injected Rs. 13.3 trillion of durable liquidity into the banking system, through various means, including by reducing the cash reserve ratio, engaging in open-market operations and conducting foreign exchange swap operations. In the June 2026 meeting, the monetary policy committee maintained the status quo on the policy rate and stance. The Reserve Bank of India, in the monetary policy meeting, announced additional measures to attract foreign capital and strengthen the balance of payments. These measures mainly included a USD - Rupee forex swap facility for fresh Foreign Currency Non-Resident (Bank) (FCNR (B)) deposits till September 30, 2026, including deposits that are renewed upon maturity, mobilized for a minimum tenor of 3 years and a maximum tenor of 5 years. A facility of concessional USD-Rupee forex swap was also announced till December 31, 2026, to incentivize external commercial borrowing by public sector undertakings and overseas foreign currency borrowing for a minimum tenor of 3 years and a maximum tenor of 5 years. At the time of maturity of these FCNR (B) deposits and foreign currency borrowings, India may experience outflow of foreign deposits, which may have an impact on exchange rates, banking sector deposits, liquidity and other related factors. There are uncertainties in the global environment due to geopolitical tensions and trade-related issues between several major global economies. Global trade disputes, tariffs or other protectionist measures and countermeasures could impact trade and capital flows and negatively affect the Indian economy, which could adversely affect our business. Global Brent crude oil prices increased substantially following the onset of the conflict in West Asia in March 2026. India is a major oil importing country, with significant reliance on oil and natural gas imports from West Asia. Therefore, the Indian economy remains exposed to supply and price shocks. See also “—Risks relating to India and other economic and market risks—Any adverse impact on India’s external trade account due to continued elevated prices of oil and other petroleum products, or any widening of the current account deficit, outflow of foreign capital or exchange rate volatility, could adversely affect the Indian economy, which could adversely affect our business”. Sharp and sustained price reductions of globally traded commodities such as metals and minerals may negatively impact our  11 borrowers in these sectors. Adverse changes to global liquidity conditions, comparative interest rates and risk appetite could lead to significant capital outflows from India, which could adversely affect our business. In fiscal 2026, net outflows of foreign portfolio investments (“FPI”) from India were USD 16.6 billion compared to inflows of USD 2.7 billion in fiscal 2025. Developments in technology, such as artificial intelligence (“AI”), may impact businesses, including ours and our customers’, and influence global and Indian employment markets, with an impact on employment and incomes of our existing and potential customers. Adverse economic conditions in India due to movements in global capital, commodity and other markets, changes in business due to technology or adverse impact of any tariffs or natural disasters could result in reduction of demand for credit and other financial products and services, increased competition, and higher defaults among corporate, small business, retail and rural borrowers, which could have a material adverse impact on our business, our financial performance, our stockholders’ equity, our ability to implement our strategy and the prices of our equity shares and ADSs. Financial instability in other countries, particularly countries where we have established operations, could adversely affect our business. There is a history of financial crises and boom-bust cycles in multiple markets in both the emerging and developed economies, which increase risks for all financial institutions, including for our business and results of operations. Global economic changes, such as ongoing geopolitical tensions, increases in tariffs and other trade disputes, as well as volatility in global markets may lead to increased risk aversion and foreign exchange rate movements, which could impact global liquidity and adversely affect our business. Uncertainty around these and related issues could lead to adverse effects on the economies in which we operate. Such volatility and negative economic developments could, in turn, materially adversely affect our business, prospects, financial conditions or results of operations. A loss of investor confidence in the financial systems of India or other markets and countries or any financial instability in India or any other market may cause increased volatility in the Indian financial markets and, directly or indirectly, adversely affect the Indian economy and financial sector, our business and our financial performance. We remain subject to the risks posed by the indirect impact of adverse developments in the global economy and the global banking environment, some of which cannot be anticipated and the vast majority of which are not under our control. We also remain subject to counterparty risk to financial institutions that fail or are otherwise unable to meet their obligations to us. Any downgrade of India’s debt rating or the rating of our senior unsecured foreign currency debt by an international rating agency could adversely affect our business, liquidity and the prices of our equity shares and ADSs. Any adverse revisions to India’s credit ratings by international rating agencies may adversely impact our business and limit our access to capital markets and adversely impact our liquidity position and market perception of the Bank. We are rated by Moody’s and Standard and Poor’s in international markets. Rating agencies may also change their methodology for rating banks or their assessment of specific parameters, which may impact our ratings. Our subsidiary in the United Kingdom is rated by Moody’s and any change in our rating or outlook or in the financial position of the subsidiary could impact the rating or outlook of our subsidiary. There can be no assurance that rating agencies will maintain their views on India’s sovereign rating or that we and our subsidiaries and affiliates will be able to meet the expectations of rating agencies and maintain our credit ratings. See also “—Risks relating to our business—Our inability to effectively manage credit, market or liquidity risk and inaccuracy of our valuation models and accounting estimates may have an adverse effect on our earnings, capitalization, credit ratings and cost of funds”. Any adverse impact on India’s external trade account due to continued elevated prices of oil and other petroleum products, or any widening of the current account deficit, outflow of foreign capital or exchange rate volatility, could adversely affect the Indian economy, which could adversely affect our business. India is vulnerable to developments in its trade account. India imports a majority of its requirements of petroleum oil and petroleum products. If elevated oil price levels or volatility in oil prices continues, as well as the impact of currency depreciation, which makes imports more expensive in local currency, and the pass-through of such increases to Indian consumers or an increase in subsidies (which would increase the fiscal deficit) there could be a material adverse impact on the Indian economy and the Indian banking and financial system, including through a rise in inflation and market interest rates, higher trade and fiscal deficits and currency depreciation. During fiscal 2026, the Rupee depreciated by 10.9% from Rs 85.46 per U.S. Dollar at March 31, 2025 to Rs 94.83 per U.S. Dollar at March 31, 2026 and further moved to a low Rs. 96.96 per U.S. Dollar at May 20, 2026. Thereafter, the Rupee has appreciated and moved to Rs. 94.33 per U.S. Dollar at June 18, 2026, supported by the measures announced by the Reserve Bank of India to attract flow of foreign currency deposits and borrowings into India and also due to moderation in crude oil prices. Following the re-escalation in West Asia in July 2026, the rupee moved to Rs. 96.40 per U.S. Dollar at July 17, 2026. The Indian economy remains exposed to currency depreciation risk due to trade deficits and volatility in capital flows. India’s trade relationships with other countries and its trade deficit may adversely affect Indian economic conditions and the exchange rate for the rupee. In fiscal 2024 and 2025, the current account deficit was 0.7% and 0.6% respectively of India’s gross domestic product. For fiscal 2026, the current account deficit stood at 0.6% of India’s gross domestic product. If current account and trade deficits increase or are no longer manageable because of factors impacting the trade deficit, such as slowing global economic growth, tariffs and supply-side constraints, the Indian economy, and therefore our business, our financial performance and the prices of our equity shares and ADSs could be adversely affected. Any reduction of or increase in the volatility of capital flows may impact the Indian economy and financial markets and increase the complexity and uncertainty in monetary policy decisions in India, leading to volatility in inflation and interest rates in India, which could also adversely impact our business, our financial performance, our stockholders’ equity, and the prices of our equity shares and ADSs. See also “—Risks relating to our business— We and our customers are exposed to fluctuations in foreign exchange rates”. The banking and financial markets in India are still evolving, and the Indian financial system could experience difficulties, which could adversely affect our business and the prices of our equity shares and ADSs. As an Indian bank, we are exposed to the risks of the Indian financial system, which may be affected by the financial difficulties faced by certain Indian financial institutions because the commercial soundness of many financial institutions may be closely related as a result of credit, trading, clearing or other relationships. This risk, which is sometimes referred to as systemic risk, may adversely affect financial intermediaries, such as clearing agencies, banks, securities firms and exchanges with which we interact daily. Any such difficulties or instability of the Indian financial system in general could create an adverse market perception about Indian financial institutions and banks and adversely affect our business. Any such developments may impact credit markets and there could be an adverse impact on the loan portfolios of banks, including us, if customers are no longer able to access financing or refinancing from these entities or replace such financing or refinancing from other sources, thereby impacting their ability to conduct operations or meet their financial obligations. Our transactions with these financial institutions expose us to credit risk in the event of default by the counterparty, which can be exacerbated during periods of market illiquidity. See also “—Risks relating to our business— There is operational risk associated with the financial industry, which, when realized, may have an adverse impact on our business”. As the Indian financial system operates in an emerging market, we face risks of a nature and extent not typically faced in more developed economies. Our credit risk may be higher than the credit risk of banks in some developed economies. Our access to information about the credit histories of our borrowers, especially individuals and small businesses, may be less extensive than what is typically available for similar borrowers in developed economies. In addition, the credit risk of our borrowers is often higher than borrowers in more developed economies due to the evolving Indian regulatory, political, economic and industrial environment. The directed lending norms of the Reserve Bank of India require us to lend a certain proportion of our loans to priority sectors, including agriculture and small enterprises, where we are less able to control the portfolio quality and where economic difficulties are likely to affect our borrowers more severely. We also purchase priority sector lending certificates to meet directed lending requirements, and the cost of purchasing such certificates may increase substantially depending on the demand and supply scenario of the certificates. Any shortfall in meeting the priority sector lending targets and sub-targets may be required to be allocated to investments yielding sub-market returns. See also “—Risks that arise as a result of our presence in a highly regulated sector—We are subject to the directed lending requirements of the Reserve Bank of India, which may also involve buying related certificates at a premium to meet the annual targets, and any shortfall in meeting these requirements may be required to be invested in Government of India schemes that yield low returns, thereby impacting our profitability. We may also experience a higher level of non-performing assets in our directed lending portfolio, which could adversely impact the quality of our loan portfolio, our business and the prices of our equity shares and ADSs”. We may face the risk of deposit runs notwithstanding the existence of a national deposit insurance scheme. Any failure to control such situations in the future could result in high volumes of deposit withdrawals, which would adversely impact our liquidity position, disrupt our business and, in times of market stress, undermine our financial strength. We pursue our banking, insurance and other activities in India with all the risks that come with operating in a developing economy. Our activities in India are widespread and diverse and involve employees, contractors, counterparties and customers with widely varying levels of education, financial sophistication and wealth. Although we seek to implement policies and procedures to reduce and manage market risks as well as operational risks within our own organization, some risks remain inherent in doing business in a large, developing country. We cannot eliminate these market and operational risks, which may lead to or exacerbate legal, regulatory or judicial actions, negative publicity or other developments that could reduce our profitability. See also “—Risks that arise as a result of our presence in a highly regulated sector—The enhanced supervisory and compliance environment in the financial sector increases the risk of regulatory action against us, whether formal or informal”, “—Risks that arise as a result of our presence in a highly regulated sector—We are at risk for inquiries or investigations by regulatory and enforcement authorities, which may adversely affect our reputation, lead to increased regulatory scrutiny, cause us to incur additional costs or adversely affect our ability to conduct business” and “—Risks relating to our business—Entry into new businesses or rapid growth in existing loan portfolios may expose us to increased risks that may adversely affect our business”. A significant change in the Government of India’s policies, including economic policies, fiscal policies and structural reforms, could adversely affect our business and the prices of our equity shares and ADSs. Our business and customers are predominantly located in India or are related to and influenced by the Indian economy. The Government of India has traditionally exercised, and continues to exercise, a dominant influence over many aspects of the economy. The Government of India’s policies could adversely affect business and economic conditions in India, our ability to implement our strategy, the operations of our subsidiaries and affiliates and our financial performance. Successive Governments of India have pursued policies of economic liberalization, including significantly relaxing restrictions on the private sector and encouraging the development of the Indian financial sector. The leadership of India and the composition of the Government of India are subject to change, and election results are not predictable. It is difficult to predict the economic policies that will be pursued by Governments of India in the future. In addition, investments by the corporate sector in India may be impacted by government policies and decisions including judicial decisions, such as with respect to awards of licenses and resources, access to land and natural resources and policies with respect to the protection of the environment. Such policies and decisions may result in delays in execution of projects, including those financed by us, and limit new project investments, thereby impacting economic growth. The pace of economic liberalization could change, and specific laws and policies affecting banking and finance companies, foreign investment, currency exchange and other matters affecting investment in our securities could change as well. Decisions by the Government of India could impact our business and financial performance. The Government of India announced the introduction of a central bank digital currency (“CBDC”) by the Reserve Bank of India. To further expand its usage, the Reserve Bank of India has proposed allowing non-bank payments system operators to offer CBDC wallets in order to make retail CBDC more accessible to a broader segment of users. Any changes in regulations or significant change in India’s economic policies or any market volatility as a result of uncertainty surrounding India’s macroeconomic policies or the future elections of its government could adversely affect business and economic conditions in India generally, our business in particular and the prices of our equity shares and ADSs could be adversely affected. Natural disasters, climate change and health epidemics could adversely affect the Indian economy, or the economy of other countries where we operate, which could adversely affect our business and the prices of our equity shares and ADSs. India has experienced natural disasters such as earthquakes, floods and droughts in the past few years. The extent and severity of these natural disasters determine their impact on the Indian economy. In particular, climate and weather conditions, such as the level and timing of monsoon rainfall, impact the agricultural sector, which constituted approximately 17.7% of India’s gross value added in fiscal 2026. Prolonged spells of below- or above-normal rainfall, other natural disasters, or global or regional climate change, could adversely affect the Indian economy and our business, especially our rural portfolio. Similarly, global or regional climate change in India and other countries where we operate could result in change in weather patterns and frequency of natural disasters like droughts, El Niño, floods and cyclones, which could affect the economy of India, the economies of countries where we operate and our operations in those countries. 15 Health epidemics could also disrupt our business, our borrowers, our counterparties and other constituents. The emergence of disease pandemics like COVID-19 have caused, and could in the future cause, economic and financial disruptions. Such disruptions in India and other areas of the world in which we operate could lead to operational difficulties, including travel restrictions, that could impact our business and our ability to manage or conduct our business. Any future outbreak of health epidemics may impact the quality of our portfolio and result in an increase in our non-performing assets and restrict the level of business activity in affected areas, which may in turn adversely affect our business and the prices of our equity shares and ADSs. If global or regional hostilities, terrorist attacks or social unrest in India or elsewhere increase, our business and the prices of our equity shares and ADSs could be adversely affected. India has from time-to-time experienced hostilities both internally and with neighboring countries. There have been military confrontations between India and Pakistan, and border disputes with neighboring countries, including China. We cannot predict how such geopolitical events will develop in the future and how it may impact our business, operations, reputation and financial condition. India has also experienced terrorist attacks in some parts of the country, including in Mumbai, where our headquarters are located. Global trade disputes and tariffs and other protectionist measures and countermeasures could impact trade and capital flows and negatively affect the Indian economy, which could adversely affect our business. In addition, geopolitical events in the Middle East, Asia and Europe or terrorist or military action in other parts of the world, may impact prices of key commodities, financial markets and trade and capital flows, including by leading to restrictions on countries which are among India’s significant trading partners. These factors and any political or economic instability in India could adversely affect our business, our financial performance and the prices of our equity shares and ADSs.