Submitted to:

Dr. Mayank Dhaundiyal

Submitted by:
RAHUL YADAV PGDM (PGDM20140109) RAHUL CHATTERJEE ( RONDU DUBEY ( RONAK BHADADA (PGDM20140057) RISHIKA SINGH (PGDM20140010)

ACKNOWLEDGEMENT
This work is done as a project, as a part of course titled "Competitor." We are really thankful to Dr. Mayank Dhaundiyal, for his valuable guidance and assistance, without which the accomplishment of this project would have never been possible. We also thank him for giving this opportunity to ANALAYISE ANNUAL GENERAL REPORT OF TOP BANKING COMPANIES. This project is a success with your support and guidance.

THANKING YOU

INDIAN BANKING INDUSTRY

The Indian banking sector has emerged as one of the strongest drivers of Indias economic growth. The Indian banking industry (US$ 1.22 trillion) has made outstanding advancement in last few years, even during the times when the rest of the world was struggling with financial meltdown. India's economic development and financial sector liberalization have led to a transformation of the Indian banking sector over the past two decades. Indian banks, the dominant financial intermediaries in India, have made high-quality progress over the last five years, as is evident from several factors, including annual credit growth, profitability, and trend in gross non-performing assets (NPAs). While annual rate of credit growth clocked 23% during the last five years, profitability (average Return on Net Worth) was maintained at around 15% during the same period, while gross NPAs fell from 3.3% as on March 31, 2006 to 2.3% as on March 31, 2011. The Indian banking sector is a mixture of public, private and foreign ownerships. The below table highlights top 10 banks which contributed 58% share of the total credit as on March 31, 2011. The State bank of India has recorded highest market share. The Net Interest Margin of HDFC Banks is 4.2% which is highest among others.

COMPANY PROFILE
ICICI Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion (US$ 93 billion) at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271 million) for the year ended March 31, 2012. The Bank has a network of 2,901 branches and 10,021 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 specialized 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).

Board Members Mr. K. V. Kamath, Chairman, Mr. Sridar Iyengar, Dr. Swati Piramal, Mr. Homi R. Khusrokhan, Mr. Arvind Kumar, Mr. M.S. Ramachandran, Dr. Tushaar Shah, Mr. V. Sridar.

Ms. Chanda Kochhar, Mr. N. S. Kannan, Mr. K. Ramkumar, Mr. Rajiv Sabharwal,

Managing Director & CEO Executive Director & CFO Executive Director Executive Director

COMPARISON OF ICICI WITH ITS COMPETITOR

ICICI BANK The second largest bank in the country after SBI in terms of asset size, ICICI Bank lost its share of the banking sector's advances from 10.2% in FY07 to 8% in FY12. At the end of March 2012, the bank had assets of over Rs 4.8 trillion and a franchise of over 9,000 ATMs and 2,750 branches spread across the country. Retail assets constituted 34% of advances in FY12 as against 65% in FY07. The bank is focusing on loan origination in the large corporate, SME and agrie segments and on non-fund based products and services. Besides the bank itself being the market leader across retail loan portfolios, its subsidiaries ICICI Life Insurance, ICICI General Insurance and ICICI AMC are leaders in their respective businesses. Technology of ICICI: ICICI use many type of advance technological software like Pinnacle 7.0 andPinnacle7.016.Amo ng from this software ICICI bank uses the e-banking, core banking, mobile banking electronic display sy ICICI Bank was using Teradata for its data warehouse. ICICI Bank was also dependent on Teradata for support and other activities: The bank was completely tied down to that solution. These issues compelled ICICI Bank to look for more efficient and flexible solutions. ICICI Bank evaluated numerous data warehousing solutions in the pursuit of solving its issues, and developed a shortlist of alternatives for its migration proof-of-concept: Sybase, SAS and Netezza. The primary criteria for evaluation were the price-to-performance ratio where Sybase IQ emerged the clear winner. During this rigorous testing, Sybase IQ delivered faster results on independent hardware and operating systems with minimum infrastructure.

SBI BANK SBI is India's largest bank in the country with an asset size of over Rs 13 trillion. Although the bank's loan book is largely skewed towards corporate (large, mid and small) loans (50% of total advances in FY12), the retail side is also fast catching up. SBI has a network of almost 14,270 branches and over 22,141 ATMs across the country. Technology of SBI: To remain competitive with its private-sector counterparts, in 2002, SBI began the largest implementation of a centralized core system ever undertaken in the banking industry. The State Bank of India selected Tata Consultancy Services to customize the software, implement the new core system, and provide ongoing operational support for its centralized information technology. The introduction of a Core Banking Solution and the implementation of initiatives under the

umbrella of Business Process Re-engineering (BPR) had drastically changed the matter of functioning. Although SBI initially planned to convert only 3,300 of its branches, it was so successful that it expanded the project to include all of the more than 14,600 SBI and affiliate bank branches. Bank initiated UPTECH an Industrial Technology Group to direct and guide programmes aimed at facilitating technology up gradation.

HDFC BANK With 4.2% share of India's total non-food credit disbursements in FY12, HDFC Bank is the second largest private sector bank in the country (after ICICI Bank) in terms of asset size. The bank has tripled its share from 1.2% of total non-food credit in FY02 to 4.2% in FY12. Retail assets constituted 51.3% of advances in FY12. Its group companies, HDFC Standard Life (insurance), HDFC AMC (mutual funds) and HDFC Securities (equities) add more options and growth prospects to the bank's offerings. Technology of HDFC The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. In terms of core banking software, the Corporate Banking business is supported by Flexcube, while the Retail Banking business by Finware, both from I-flex Solutions Ltd. The systems are open, scaleable and webenabled.

Ratio Comparison
Ratio Earnings per share ICICI 2011 =profit after 67.19 tax preference share dividend / no. of equity share = dividend 14 paid to equity share holder / no. of equity share ICICI 2012 66.3 AXIS 2012 102.1 HDFC 2012 22.4 SBI 2012 228.6

Dividend per share

16.50

16.00

4.30

35.00

Debt equity = total 0.09 ratio debt/share holder fund Gross profit Dividend yield ratio Credit deposit ratio Price earnings ratio = gross profit / net sales *100 =total debt / 1.55 share holder fund / = net credit 87.81 purchase / average creditors =market 24.88 price per share / earnings per share

7.2

11.2

14.8

-165703

19259

36924

110218

1.5

1.2

0.7

1.6

103.6

77.2

80.7

82.3

13.4

11.7

21.6

9.9

Interpretation:

1. EARNING PER SHARE EPS being a widely used ratio is a measure of profitability from the owners point of view. Higher the ratio, investors will be more attracted. Here Net Profit refers to Net Profit after taxes and preference dividend. IN 2012 EARNING PER SHARE IS DECREASE BY 0.59%. The profit after deducting the dividends is more in SBI Bank that means SBI is having more funds with them in form of profit because SBI is an established brand. Whereas ICICI Bank has less profit after deducting the dividends because ICICI Bank is a fast growing bank, therefore it needs to give more dividends to the shareholders, so there is less EPS.

2. DIVIDEND PER SHARE It is nothing but the dividend paid to the ordinary shareholders, calculated per share basis. Higher the ratio, investors will be more attracted in 2012. Dividend per share increase by 2.50% that company issue lot of dividend.

3. DEBT EQUITY RATIO This ratio reflects the proportion of owners stake in the business. Excess liabilities tend to cause insolvency and working capital problem. There is standard of 2:1, which says that debts should not exceed twice of the Shareholders funds. In 2012 debt equity ratio has increased by 6.3%. This means company gave lot of loan .and loan is long types.

4. DIVIDEND YIELD RATIO Higher the ratio, it is good for the company and it will attract more investors. The ratio is to be compared with industrial average and over the years, to support its genuineness. In 2012 its DECREASE by 45%.

5. PRICE EARNING RATIO

This ratio represents that for every rupee of earning per share, how much the price being paid by the market. This ratio is reviewed over the years to reflect the trend towards appreciation in the value of shares per every rupee of EPS. In 2012 price earning is decrease by 11.48 %. That mean company goodwill decrease in 2012.

SWOT ANALYSIS:
Strength: ICICI bank is 2nd largest bank. It has a network of 2,758 branches and 9,363 ATMs in India, and has a presence in 19 countries, including India. One of the major strengths is its strong and transparent balance sheet. It has first mover advantage in some banking and financial services and was 1 st to start mobile banking in India. Marketing and advertising of ICICI have a better reach than other banks. Longest working hours and additional services at ATMs attract customers. It has largest authorized capital base in banking system. Having capacity to raise Rs. 19,000,000,000.

Weakness: Lot of consumer complaints filed against ICICI. Bank service charges are higher than competitors. Stringent policies in terms of recovering debt, loans and credit payment. Third party agency handles recovery management. Employees are always under pressure of competitor banks. This might affect productivity.

Opportunities: ICICI bank has minimum amount of Non Performing Assets.

Expansion in rural banking. Planning to open hundreds of new branches. Can acquire small and non performing banks based on its financial strength. Growth in banking sector in coming years.

Threats: RBI has allowed foreign banks to invest up to 74% in Indian banking. HDFC and Axis banks are major competitors of ICICI bank and hence a big threat. Although customer acquisition is high, unsatisfied customers easily switch to other banks.

CONCLUSION

On the basis of above analysis we can arrive at conclusion that the financial position and overall performance is good. Its dividend per share is good which indicate that number of investor is going to increase in future. Though its gross profit decreased in year 2012, its financial record is showing that is making up its loss and showing a try to overcome it. Its debt ratio is less than other bank its indicate that they more equity. Individuals are the major shareholders. The major achievement of the bank has been a tremendous increase in its deposits, which has always been its main objective. Fixed and current deposits have also shown an increasing trend. Banks investments are also showing an increasing trend. Due to increase in advances, the interest received by the bank from such advances is proving to be the major source of income for the bank.