PROJECT REPORT

ON
FINANCIAL ANALYSIS
OF

ICICI Bank

Submitted by:

Anil Jain
IGNOU, New Delhi

2016-17

PREFACE

In any organization, the two important financial statements are the Balance Sheet and
Profit & Loss Account of the business. Balance Sheet is a statement of financial position
of an enterprise at a particular point of time. Profit & Loss account shows the net profit or
net loss of a company for a specified period of time. When these statements of the last
few year of any organization are studied and analyzed, significant conclusions may be
arrived regarding the changes in the financial position, the important policies followed
and trends in profit and loss etc. Analysis and interpretation of financial statement has
now become an important technique of credit appraisal. The investors, financial experts,
management executives and the bankers all analyze these statements. Though the basic
technique of appraisal remains the same in all the cases but the approach and the
emphasis in the analysis vary. A banker interprets the financial statement so as to evaluate
the financial soundness and stability, the liquidity position and the profitability or the
earning capacity of borrowing concern. Analysis of financial statements is necessary
because it helps in depicting the financial position on the basis of past and current
records. Analysis of financial statements helps in making the future decisions and
strategies. Therefore it is very necessary for every organization whether it is a financial or
manufacturing, to make financial statement and to analyze it.

Table of content
Chapter

PARTICULARS

Page no.

Acknowledgement

Preface
Introduction Of Banking

4
6-18

no.
1.

a.
b.
c.
d.
e.
2.

Introduction of banking.
History of banking in India
Banks in India
Fact files of banks in India
Indian banking industry.

Companys Profile
a.
b.
c.
d.
e.
f.
g.
h.
i.

3.

Research Methodology
a.
b.
c.
d.
e.
f.
g.
h.

4.

Introduction to ICICI Bank

ICICI Bank today
Business profile...
Board of directors
Board committee.
Business objective
Technology used in ICICI Bank..
Products and services...
Awards and recognition
Objective of study
Importance of study.
Meaning of research
Research problem
Research design...
Data collection method
Analysis and interpretation of data..
Limitation of study..

Financial Analysis
a.
b.
c.
d.

Introduction of the topic.

Method/Tools of financial analysis.
Balance sheet of ICICI Bank..
Profit and Loss Account of ICICI
Bank..
e. Financial statement analysis
1) Comparative financial
statement.
2) Trend
analysis.
3) Ratio
analysis..

7
8
11
17
18

19-55
21
27
28
29
30
31
32
34
54

56-62
58
58
59
59
60
61
62
62

63-92
64
67
73
75
76
76
79
80

5.

Findings ,Suggestions And

Conclusion.

93-98

6.

Bibliography

99-100

INTRODUCTION OF BANKING
Definition Of Bank:
Banking Means "Accepting Deposits for the purpose of lending or Investment of
deposits
of money from the public, repayable on demand or otherwise and
withdraw by cheque, draft or otherwise."

-Banking Companies (Regulation)

Act,1949

ORIGIN OF THE WORD BANK:The origin of the word bank is shrouded in mystery. According to one view point
the Italian business house carrying on crude from of banking were called banchi
bancheri" According to another viewpoint banking is derived from German word
"Branck" which mean heap or mound. In England, the issue of paper money by
the government was referred to as a raising a bank.

ORIGIN OF BANKING :
Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of
banking was developed as it provides the safer place to store the money. This
safe place ultimately evolved in to financial institutions that accepts deposits and
make loans i.e., modern commercial banks.

Banking system in India

Without a sound and effective banking system in India it cannot have a healthy
economy.The banking system of India should not only be hassle free but it

should be able to meet new challenges posed by the technology and any other
external and internal factors.
For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country. This is one of the
main reasons of India's growth process.

HISTORY OF BANKING IN INDIA

Banking in India has its origin as early or Vedic period. It is believed that the
transitions from many lending to banking must have occurred even before Manu,
the great Hindu furriest, who has devoted a section of his work to deposit and
advances and laid down rules relating to the rate of interest. During the mogul
period, the indigenous banker played a very important role in lending money and
financing foreign trade and commerce.
During the days of the East India Company it was the turn of agency house to
carry on the banking business. The General Bank of India was the first joint stock
bank to be established in the year 1786. The other which followed was the Bank
of Hindustan and Bengal Bank. The Bank of Hindustan is reported to have
continued till 1906. While other two failed in the meantime. In the first half of the
19th century the East India Company established there banks, The bank of
Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843.
These three banks also known as the Presidency banks were the independent
units and functioned well. These three banks were amalgamated in 1920 and
new bank, the Imperial Bank of India was established on 27th January, 1921.
With the passing of the State Bank of India Act in 1955 the undertaking of the
Imperial Bank of India was taken over by the newly constituted SBI. The Reserve
Bank of India (RBI) which is the Central bank was established in April, 1935 by
passing Reserve bank of India act 1935. The Central office of RBI is in Mumbai
and it controls all the other banks in the country.
In the wake of Swadeshi Movement, number of banks with the Indian
management were established in the country namely, Punjab National Bank Ltd.,
Bank of India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd. on 19 th July 1969, 14
major banks of the country were nationalized and on 15 th April 1980, 6 more
commercial private sector banks were taken over by the government.
7

The first bank in India, though conservative, was established in 1786. From 1786
till today,the journey of Indian Banking System can be segregated into three
distinct phases. They areas mentioned below:
Early phase from 1786 to 1969 of Indian Banks
Nationalization of Indian Banks and up to 1991 prior to Indian banking
sector Reforms.
New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II
and Phase III.

Phase I
The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established Bank of
Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans
shareholders.
In 1865 Allahabad Bank was established and first time exclusively by
Punjab National Bank Ltd. was set up in 1894 with headquarters at
Between 1906 and 1913, Bank of India, Central Bank of India, Bank of
Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve
India came in 1935.

Indians,
Lahore.
Baroda,
Bank of

During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100 banks,
mostly small. To streamline the functioning and activities of commercial banks,
the Government of India came up with The Banking Companies Act, 1949 which
8

was later changed to Banking Regulation Act 1949 as per amending Act of 1965
(Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers
for the supervision of banking in India as the Central Banking Authority.
During those days public has lesser confidence in the banks. As an aftermath
deposit mobilization was slow. Abreast of it the savings bank facility provided by
the Postal department was comparatively safer. Moreover, funds were largely
given to traders.

Phase II
Government took major steps in this Indian Banking Sector Reform after
independence. In1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and semi-urban areas. It
formed State Bank of India to act as the principal agent of RBI and to handle
banking transactions of the Union and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960
on 19th July,1969, major process of nationalization was carried out. It was the
effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major
commercial banks in the country was nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in
India under Government ownership.
The following are the steps taken by the Government of India to Regulate
BankingInstitutions in the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India
rose to approximately 800% in deposits and advances took a huge jump by
11,000%.
Banking in the sunshine of Government ownership gave the public implicit faith
and immense confidence about the sustainability of these institutions.

Phase III
This phase has introduced many more products and facilities in the banking
sector in its reforms measure. In 1991, under the chairmanship of M
Narasimham, a committee was set up by his name which worked for the
liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire system became more convenient and swift.
Time is given more importance than money.
The financial system of India has shown a great deal of resilience. It is sheltered
from any crisis triggered by any external macroeconomics shock as other East
Asian Countries suffered. This is all due to a flexible exchange rate regime, the
foreign reserves are high, the capital account is not yet fully convertible, and
banks and their customers have limited foreign exchange exposure.

BANKS IN INDIA
In India the banks are being segregated in different groups. Each group has their
own benefits and limitations in operating in India. Each has their own dedicated
target market. Few of them only work in rural sector while others in both rural as
well as urban. Many even are only catering in cities. Some are of Indian origin
and some are foreign players.

10

All these details and many more is discussed over here. The banks and its
relation with the customers, their mode of operation, the names of banks under
different groups and other such useful informations are talked about.
One more section has been taken note of is the upcoming foreign banks in India.
The RBI has shown certain interest to involve more of foreign banks than the
existing one recently. This step has paved a way for few more foreign banks to
start business in India.

BANKING STRUCTURE IN INDIA

SCHEDULED BANKS IN INDIA

(1) Scheduled Commercial Banks

Public Sector Banks

(26)

Private Sector
Banks

Foreign Banks In
India

(25)

Nationalized
Bank
Other
Public
Sector
Banks
(IDBI)
SBI
And
Its
Associates

(29)

Regional Rural
Banks
(95)

Old
Private
Banks
New Private
Banks

(2) Scheduled Cooperative Banks

Scheduled Urban Cooperative

Banks

Scheduled State Cooperative Banks

11

Public Sector Banks

Public sector banks are those banks which are owned by the Government. The
Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980
another 6 banks were also nationalized. Therefore in 1980 the number of
nationalized bank 20. At present there are total 26 Public Sector Banks in India
(As on 26-09-2009). Of these 19 are nationalised banks, 6(STATE BANK OF
INDORE ALSO MERGED RECENTLY) belong to SBI & associates group and 1
bank (IDBI Bank) is classified as other public sector bank. Welfare is their
primary objective.

Nationalised banks

Allahabad Bank
Andhra Bank
Bank Of Baroda
Bank Of India
Bank Of Maharastra
Canara Bank
Central Bank Of
India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas
Bank
Oriental Bank Of
Commerce
Punjab & Sind Bank
Punjab National
Bank
Syndicate Bank
UCO Bank
Union Bank Of India
United Bank Of India
Vijaya Bank

Other
Public
Sector
Banks
IDBI
(Industrial
Development
Bank Of
India)Ltd.

SBI & its Associates

State Bank of India

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

State Bank of Bikaner And

Jaipur

(State Bank of Saurastra merged with SBI

in the year 2008 and State Bank of Indore
In 2010)

12

Private Sector Banks

These banks are owned and run by the private sector. Various banks in the country such
as ICICI Bank, HDFC Bank etc. An individual has control over there banks in preparation
to the share of the banks held by him.
Private banking in India was practiced since the beginning of banking system in India.
The first private bank in India to be set up in Private Sector Banks in India was IndusInd
Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the
tenth largest development bank in the world as Private Banks in India and has promoted
world class institutions in India.
The first Private Bank in India to receive an in principle approval from the Reserve Bank
of India was Housing Development Finance Corporation Limited, to set up a bank in the
private sector banks in India as part of the RBI's liberalization of the Indian Banking
Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office
in Mumbai and commenced operations as Scheduled Commercial Bank in January
1995. ING Vysya, yet another Private Bank of India was incorporated in the year 1930
Private sector banks have been subdivided into following 2 categories:-

13

Old Private Sector Banks

Bank of Rajasthan Ltd.

Catholic Syrian Bank Ltd.

City Union Bank Ltd.

Dhanalakshmi Bank Ltd.

Federal Bank Ltd.

ING Vysya Bank Ltd.

Jammu and Kashmir Bank Ltd.

Karnataka Bank Ltd.

Karur Vysya Bank Ltd.

Lakshmi Vilas Bank Ltd.

Nainital Bank Ltd.

Ratnakar Bank Ltd.

SBI Commercial and

International Bank Ltd.

South Indian Bank Ltd.

Tamilnad Mercantile Bank Ltd.

United Western Bank Ltd.

New Private Sector Banks

Bank of Punjab Ltd. (since

merged with Centurian Bank)
Centurian Bank of Punjab (since
merged with HDFC Bank)
Development Credit Bank Ltd.
HDFC Bank Ltd.
ICICI Bank Ltd.
IndusInd Bank Ltd.
Kotak Mahindra Bank Ltd.
Axis Bank (earlier UTI Bank)
Yes Bank Ltd.

14

Foreign Banks In India

ABN AMRO Bank N.V.
Abu Dhabi Commercial
Bank Ltd
American Express Bank
Antwerp Diamond Bank
Arab Bangladesh Bank
Bank International
Indonesia
Bank of America
Bank of Bahrain & Kuwait
Bank of Ceylon
Bank of Nova Scotia
Bank of Tokyo Mitsubishi
UFJ
Barclays Bank
BNP Paribas
Calyon Bank
ChinaTrust Commercial
Bank
Citibank
DBS Bank
Deutsche Bank

HSBC (Hongkong &

Shanghai Banking
Corporation)
JPMorgan Chase Bank
Krung Thai Bank
Mashreq Bank
Mizuho Corporate Bank
Oman International Bank
Shinhan Bank
Socit Gnrale
Sonali Bank
Standard Chartered Bank
State Bank of Mauritius

15

Cooperative banks in India

The Cooperative bank is an important constituent of the Indian Financial System,
judging by the role assigned to co operative, the expectations the co operative is
supposed to fulfil, their number, and the number of offices the cooperative bank
operate. Though the co operative movement originated in the West, but the
importance of such banks have assumed in India is rarely paralleled anywhere
else in the world. The cooperative banks in India plays an important role even
today in rural financing. The businessess of cooperative bank in the urban areas
also has increased phenomenally in recent years due to the sharp increase in the
number of primary co-operative banks.
Co operative Banks in India are registered under the Co-operative Societies Act.
The cooperative bank is also regulated by the RBI. They are governed by the
Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act,
1965.

Rural banks in India

Rural banking in India started since the establishment of banking sector in
India. Rural Banks in those days mainly focussed upon the agro sector. Regional
rural banks in India penetrated every corner of the country and extended a
helping hand in the growth process of the country.
SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of
SBI is spread in 13 states extending from Kashmir to Karnataka and Himachal
Pradesh to North East. The total number of SBIs Regional Rural Banks in India
branches is 2349 (16%). Till date in rural banking in India, there are 14,475 rural
banks in the country of which 2126 (91%) are located in remote rural areas.
Apart from SBI, there are other few banks which functions for the development of
the rural areas in India. Few of them are as follows.

Haryana State Cooperative Apex Bank Limited

16

The Haryana State Cooperative Apex Bank Ltd. commonly called as

HARCOBANK plays a vital role in rural banking in the economy of Haryana State
and has been providing aids and financing farmers, rural artisans, agricultural
labourers, entrepreneurs, etc. in the state and giving service to its depositors.

NABARD
National Bank for Agriculture and Rural Development (NABARD) is a
development bank in the sector of Regional Rural Banks in India. It provides and
regulates credit and gives service for the promotion and development of rural
sectors mainly agriculture, small scale industries, cottage and village industries,
handicrafts. It also finance rural crafts and other allied rural economic activities to
promote integrated rural development. It helps in securing rural prosperity and its
connected matters.

Sindhanur Urban Souharda Co-operative Bank

Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO
BANK is the first of its kind in rural banks of India. The impressive story of its
inception is interesting and inspiring for all the youth of this country .

United Bank of India

United Bank of India (UBI) also plays an important role in regional rural banks. It
has expanded its branch network in a big way to actively participate in the
developmental of the rural and semi-urban areas in conformity with the objectives
of nationalisation.

Syndicate Bank
Syndicate Bank was firmly rooted in rural India as rural banking and have a clear
vision of future India by understanding the grassroot realities. Its progress has
been abreast of the phase of progressive banking in India especially in rural
banks.
17

 Fact Files of Banks in India

The first Bank in India to be given an ISO certification.

Canara Bank

The first Bank in Northern India to get ISO 9002 certification

for their selected branches.

Punjab and Sind

Bank

The first Indian Bank to have been started solely with Indian capital.

Punjab
Bank

National

The first among the Private Sector Banks in Kerala to become South Indian Bank
Scheduled Bank in 1946 under the RBI act.

Indias oldest,largest and the most successful commercial bank State

offering the widest possible rang of domestic,international and NRI India
products and services,through its vast network in India and overseas.

Bank

of

Indias second largest Private Sector Bank and is now the largest The Federal Bank
scheduled commercial bank in India.
Limited

18

Bank which started as Private Shareholders Banks,mostly European Imperial Bank of

shareholders.
India

The first Indian Bank to open a branch outside India in London in Bank of India,
1946 and the first to open a branch in continental Europe at Paris in founded in 1906
1974
in Mumbai.

The oldest Public Sector Bank in India having branches all over India Allahabad Bank
and serving the customers for the last 132 years.

The first Indian Commercial Bank which was wholly owned and Central Bank of
managed by Indians.
India

INDIAN BANKING INDUSTRY

The Indian banking market is growing at an astonishing rate, with Assets
expected to reach US$1 trillion by 2010. An expanding economy, middleclass,
and technological innovations are all contributing to this growth.
The countrys middle class accounts for over 320 million People. In correlation
with the growth of the economy, rising income levels, increased standard of
living, and affordability of banking products are promising factors for continued
expansion.

19

The Indian banking Industry is in the middle of an IT revolution, Focusing on the

expansion of retail and rural banking. Players are becoming increasingly
customer -centric in their approach, which has resulted in innovative methods of
offering new banking products and services. Banks are now realizing the
importance of being a big playerand are beginning to focus their attention on
mergers and acquisitions to take advantage of economies of scale and/or comply
with Basel II regulation.Indian banking industry assets are expected to reach
US$1 trillion by 2010 and are poised to receive a greater infusion of foreign
capital, says Prathima Rajan, analyst in Celent's banking group and author of
the report. The banking industry should focus on having a small number of large
players that can compete globally rather than having a large number of
fragmented players.

20

Type

Private
BSE & NSE:ICICI,
NYSE: IBN

Chapter
2
Banking

Industry

Insurance
Capital Markets and allied
industries

COMPANYS PROFILE
Founded

1955 (as Industrial Credit and

Investment Corporation of
India)

Headquarters ICICI Bank Ltd.,

ICICI Bank Towers,
Bandra Kurla,
Mumbai, India

Key people

K.V. Kamath,Chairman
Chanda Kochhar, Managing
Director & CEO
Sandeep Bakhshi, Deputy
Managing Director
N.S. Kannan, Executive Director
& CFO
K. Ramkumar, Executive
Director
Sonjoy Chatterjee, Executive
Director

Products

Loans, Credit Cards, Savings,

Investment vehicles, Insurance
etc.

Revenue

USD 15.06 billion

Total assets

USD 120.61 billion (at March

31, 2009.)

21
Website

www.icicibank.com

INTRODUCTION TO ICICI BANK

History Of ICICI
1955: The Industrial Credit and Investment Corporation of
India Limited (ICICI) was incorporated at the initiative of
World Bank, the Government of India and representatives of
Indian industry, with the objective of creating a development
financial institution for providing medium-term and long-term
project financing to Indian businesses. Mr.A.Ramaswami
Mudaliar elected as the first Chairman of ICICI Limited. ICICI
emerges as the major source of foreign currency loans to
Indian industry. Besides funding from the World Bank and
other multi-lateral agencies, ICICI was also among the first
Indian companies to raise funds from international markets.
1956 : ICICI declared its first dividend of 3.5%.
1958 : Mr.G.L.Mehta appointed the second Chairman of
ICICI Ltd.
1960 : ICICI building at 163, Backbay Reclamation,
inaugurated.
1961 : The first West German loan of DM 5 million from
Kredianstalt obtained.
1967 : ICICI made its first debenture issue for Rs.6 crore,
which was oversubscribed.

22

 1969 : The first two regional offices in Calcutta and Madras

set up.
1972 : The second entity in India to set up merchant banking
services. : Mr. H. T. Parekh appointed the third Chairman of
ICICI.
1977 : ICICI sponsored the formation of Housing
Development Finance Corporation. Managed its first equity
public issue.
1978 : Mr. James Raj appointed the fourth Chairman of
ICICI.
1979 : Mr.Siddharth Mehta appointed the fifth Chairman of
ICICI.
1982 : 1982 : ICICI became the first ever Indian borrower to
raise European Currency Units. : ICICI commences leasing
business.
1984 : Mr. S. Nadkarni appointed the sixth Chairman of
ICICI.
1985 : Mr. N.Vaghul appointed the seventh Chairman and
Managing Director of ICICI.
1986 : ICICI became the first Indian institution to receive
ADB Loans. : ICICI, along with UTI, set up Credit Rating
Information Services of India Limited, India's first
professional credit rating agency. : ICICI promotes Shipping
Credit and Investment Company of India Limited. : The
Corporation made a public issue of Swiss Franc 75 million in
Switzerland, the first public issue by any Indian entity in the
Swiss Capital Market.
1987 : ICICI signed a loan agreement for Sterling Pound 10
million with Commonwealth Development Corporation
(CDC), the first loan by CDC for financing projects in India.

23

 1988 : Promoted TDICI - India's first venture capital

company.

1993 : ICICI Securities and Finance Company Limited in

joint venture with J. P. Morgan set up. : ICICI Asset
Management Company set up.
1994: ICICI established Banking Corporation as a banking
subsidiary.formerly Industrial Credit and Investment
Corporation of India. Later, ICICI Banking Corporation was
renamed as 'ICICI Bank Limited'. ICICI founded a separate
legal entity, ICICI Bank, to undertake normal banking
operations - taking deposits, credit cards, car loans etc.
1996 : ICICI Ltd became the first company in the Indian
financial sector to raise GDR. : SCICI merged with ICICI Ltd.
: Mr. K.V.Kamath appointed the Managing Director and CEO
of ICICI Ltd

1997 : ICICI Ltd was the first intermediary to move away

from single prime rate to three-tier prime rates structure and
introduced yield-curve based pricing. : The name The
Industrial Credit and Investment Corporation of India Ltd
changed to ICICI Ltd. : ICICI Ltd announced the takeover of
ITC Classic Finance.
1998 : Introduced the new logo symbolizing a common
corporate identity for the ICICI Group. : ICICI announced
takeover of Anagram Finance.
1999 : ICICI launched retail finance - car loans, house loans
and loans for consumer durables. : ICICI becomes the first
Indian Company to list on the NYSE through an issue of
American Depositary Shares.
2000 : ICICI Bank became the first commercial bank from
India to list its stock on NYSE.
2001: ICICI acquired Bank of Madura (est. 1943). Bank of
Madura was a Chettiar bank, and had acquired Chettinad
Mercantile Bank (est. 1933) and Illanji Bank (established
1904) in the 1960s.
In October 2001, the Boards of
Directors of ICICI and ICICI Bank approved the merger of
24

ICICI and two of its wholly owned retail finance subsidiaries,

ICICI Personal Financial Services Limited and ICICI Capital
Services Limited, with ICICI Bank.
2002 : The merger was approved by shareholders of ICICI
and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmadabad in March 2002, and by the High Court
of Judicature at Mumbai and the Reserve Bank of India in
April 2002. Consequent to the merger, the ICICI group's
financing and banking Operations, both wholesale and retail,
have been integrated in a single entity. At the same time,
ICICI started its international expansion by opening
representative offices in New York and London. In India,
ICICI Bank bought the Shimla and Darjeeling branches that
Standard Chartered Bank had inherited when it acquired
Grindlays Bank.
2003 : The first Integrated Currency Management Centre
launched in Pune. ; ICICI Bank announced the setting up of
its first ever offshore branch in Singapore. ; The first offshore
banking unit (OBU) at Seepz Special Economic Zone,
Mumbai, launched. ; ICICI Banks representative office
inaugurated in Dubai. ; Representative office set up in
China. : ICICI Banks UK subsidiary launched. ; Indias first
ever "Visa Mini Credit Card", a 43% smaller credit card in
dimensions launched. ; ICICI Bank subsidiary set up in
Canada. ; Temasek Holdings acquired 5.2% stake in ICICI
Bank. ; ICICI Bank became the market leader in retail credit
in India. In the UK it established an alliance with Lloyds TSB.
It also opened an Offshore Banking Unit (OBU) in Singapore
and representative offices in Dubai and Shanghai.

2004 : Max Money, a home loan product that offers the dual
benefit of higher eligibility and affordability to a customer,
introduced. : Mobile banking service in India launched in
association with Reliance Infocomm. : Indias first multibranded credit card with HPCL and Airtel launched. : Kisan
Loan Card and innovative, low-cost ATMs in rural India
launched. : ICICI Bank and CNBC TV 18 announced Indias
25

first ever awards recognizing the achievements of SMEs, a

pioneering initiative to encourage the contribution of Small
and Medium Enterprises to the growth of Indian economy. :
ICICI Bank opened its 500th branch in India. : ICICI Bank
introduced partnership model wherein ICICI Bank would
forge an alliance with existing micro finance institutions
(MFIs). The MFI would undertake the promotional role of
identifying, training and promoting the micro-finance clients
and ICICI Bank would finance the clients directly on the
recommendation of the MFI. : ICICI Bank introduced 8-8
Banking wherein all the branches of the Bank would remain
open from 8a.m. to 8 p.m. from Monday to Saturday. : ICICI
Bank introduced the concept of floating rate for home loans
in India. At the same time, ICICI opened a representative
office in Bangladesh to tap the extensive trade between that
country, India and South Africa.

2005 : First rural branch and ATM launched in Uttar Pradesh

at Delpandarwa, Hardoi. ; "Free for Life" credit cards
launched wherein annual fees of all ICICI Bank Credit Cards
were waived off. ; ICICI Bank and Visa jointly launched
mChq a revolutionary credit card on the mobile phone. ;
Private Banking Masters 2005, a nationwide Golf tournament
for high networth clients of the private banking division
launched. This event is the largest domestic invitation
amateur golf event conducted in India. ; First Indian
company to make a simultaneous equity offering of $1.8
billion in India, the United States and Japan. ; ICICI acquired
Investitsionno-Kreditny Bank (IKB), a Russia bank with about
US$4mn in assets, head office in Balabanovo in the Kaluga
region, and with a branch in Moscow. ICICI renamed the
bank ICICI Bank Eurasia. Also, ICICI established a branch in
Dubai International Financial Centre and in Hong Kong.ICICI
Bank became the largest bank in India in terms of its market
capitalization. ; ICICI Bank became the first private entity in
India to offer a discount to retail investors for its follow-up
offer.

26

 2006 : ICICI Bank became the first Indian bank to issue

hybrid Tier-1 perpetual debt in the international markets. :
ICICI Bank subsidiary set up in Russia. ; Introduced a new
product - NRI smart save Deposits a unique fixed deposit
scheme for nonresident Indians. : Representative offices
opened in Thailand, Indonesia and Malaysia. ; ICICI Bank
UK opened a branch in Antwerp, in Belgium ; ICICI Bank
became the largest retail player in the market to introduce a
biometric enabled smart card that allow banking transactions
to be conducted on the field. A low-cost solution, this
became an effective delivery option for ICICI Banks micro
finance institution partners. ; Financial counseling centre
Disha launched. Disha provides free credit counseling,
financial planning and debt management services. ; Bhoomi
puja conducted for a regional hub in Hyderabad, Andhra
Pradesh.

2007 : ICICI Banks USD 2 billion 3-tranche international

bond offering was the largest bond offering by an Indian
bank. ; ICICI amalgamated Sangli Bank, which was
headquartered in Sangli, in Maharashtra State, and which
had 158 branches in Maharashtra and another 31 in
Karnataka State. Sangli Bank had been founded in 1916 and
was particularly strong in rural areas. With respect to the
international sphere, ICICI also received permission from the
government of Qatar to open a branch in Doha. Also, ICICI
Bank Eurasia opened a second branch, this time in St.
Petersburg. ; ICICI Bank raised Rs 20,000 crore (approx $5
billion) from both domestic and international markets through
a follow-on public offer. ; ICICI Banks GBP 350 million
international bond offering marked the inaugural deal in the
sterling market from an Indian issuer and also the largest
deal in the sterling market from Asia. ; Launched Indias first
ever jewellery card in association with jewelry major Gitanjali
Group. ; ICICI Bank became the first bank in India to launch
a premium credit card -- The Visa Signature Credit Card. ;
Foundation stone laid for a regional hub in Gandhinagar,
Gujarat. ; Introduced SME Toolkit, an online resource centre,
to help small and medium enterprises start, finance and
27

grow their business. ; ICICI Bank signed a multi-tranche dual

currency US$ 1.5 billion syndication loan agreement in
Singapore. ; ICICI Bank became the first private bank in
India to offer both floating and fixed rate on car loans,
commercial vehicles loans, construction equipment loans
and professional equipment loans. ; In a first of its kind,
nation wide initiative to attract bright graduate students to
pursue a career in banking, ICICI Bank launched the
"Probationary Officer Programme". ;Launched Bank@home
services for all savings and current a/c customers residing in
India ; ICICI Bank Eurasia LLC inaugurated its first branch at
St Petersburg, Russia.

2008 : ICICI Bank enters US The US Federal Reserve

permitted ICICI to convert its representative office in New
York into a branch.; ICICI Bank enters Germany, opens its
first branch in Frankfurt ; ICICI Bank launched iMobile, a
breakthrough innovation in banking where practically all
internet banking transactions can now be simply done on
mobile phones. ; ICICI Bank concluded India's largest ever
securitization transaction of a pool of retail loan assets
aggregating to Rs. 48.96 billion (equivalent of USD 1.21
billion) in a multi-tranche issue backed by four different asset
categories. It is also the largest deal in Asia (ex-Japan) in
2008 till date and the second largest deal in Asia (ex-Japan
& Australia) since the beginning of 2007. ; ICICI Bank
launches ICICIACTIVE - Banking Interactive Service - along
with DISHTV, which will allow viewers to see information
28

about the Bank's products and services and contact details

on their DISHTV screens. ; ICICI Bank and British Airways
launch co-branded credit card, which is designed to earn
accelerated reward points to the card holders with every
British Airways flight or by spending on everyday purchases.
2009: ICICI Bank Board appoints Mr K. V. Kamath as nonexecutive Chairman and Ms Chanda Kochhar as Managing
Director & CEO effective May 1, 2009, while the existing
non-executive Chairman Mr N Vaghul retires after
completing his term on April 30, 2009 ; ICICI bank ties up
with BSNL Cell One for bill payments, it will facilitate bill
payment
for
BSNL
Cell
One
users
through
www.icicibank.com across all the 27 circles of BSNL. ; ICICI
Bank Limited acting through its Hong Kong Branch (ICICI
Bank) signed an agreement on Export Credit Line totaling up
to US$100 million with the Japan Bank for International
Cooperation (JBIC) which constitutes the international wing
of Japan Finance Corporation. ; ICICI Bank Limited acting
through its Hong Kong Branch (ICICI Bank) signed a loan
agreement with the Export-Import Bank of China (China
Exim) for USD 98 million under the Two- step Buyer Credit
(Export Credit) arrangement. ICICI Bank is the first Indian
Bank to have entered into this arrangement with China Exim
; ICICI Bank with Singapore Airlines launched ICICI Bank
Singapore Airlines Visa Platinum Credit Card, the Card has
exclusive privileges especially designed for the members. ;
ICICI Bank announced an association with mChek, Indias
leading mobile payment solutions provider, to facilitate
mChek services to all ICICI Bank Debit and Credit Card
customers. These are electronic cards issued to the
customers with mChek application on their mobile phone. ;
Ms Chanda Kochhar took charge as the Managing Director
& CEO of ICICI Bank from May 1, 2009.

ICICI BANK TODAY

ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment
Corporation of India) is India's largest private sector bank by market
capitalisation and second largest overall in terms of assets. Trotal assets of Rs.
29

3,562.28 billion (US$ 77 billion) at December 31, 2009 and profit after tax Rs.
30.19 billion (US$ 648.8 million) for the nine months ended December 31, 2009.
The Bank also has a network of 1,640+ branches (as on February 11, 2010) and
about 4,721 ATMs in India and presence in 18 countries, as well as some 24
million customers (at the end of July 2007). ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers
through a variety of delivery channels and specialised subsidiaries and affiliates
in the areas of investment banking, life and non-life insurance, venture capital
and asset management. (These data are dynamic.) ICICI Bank is also the largest
issuer of credit cards in India. ICICI Bank has got its equity shares listed on the
stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock
Exchange of India Limited, and its ADRs on the New York Stock Exchange
(NYSE). The Bank is expanding in overseas markets and has the largest
international balance sheet among Indian banks. ICICI Bank now has whollyowned subsidiaries, branches and representatives offices in 18 countries,
including an offshore unit in Mumbai. This includes wholly owned subsidiaries in
Canada, Russia and the UK (the subsidiary through which the HiSAVE savings
brand is operated), offshore banking units in Bahrain and Singapore, an advisory
branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and
representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa,
Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the
NRI (Non-Resident Indian) population in particular.
ICICI reported a net profit of Rs. 3,758 crore (US$ 741 million) for FY2009. The
bank's Current and savings account (CASA) ratio increased to 28.7% at March
31, 2009 from 26.1% at March 31, 2008. Increase of Rs. 5,286 crore in CASA
deposits in quarter ended March 31,2009.
ICICI Bank is one of the Big Four Banks of India with State Bank of India, Axis
Bank and HDFC Bank

ICICI Bank Group

30

BUSINESS PROFILE

Products & Services

Personal Banking

Deposits
Loans
Cards
Investments
Insurance
Demat Services
Wealth Management

NRI Banking

Money Transfer
Bank Accounts
Investments
Property Solutions
Insurance
Loans

Business Banking

Corporate Net Banking

Cash Management
Trade Services
FXOnline
SME Services
Online Taxes
Custodial Services

Head Office
ICICI Bank
9th Floor, South Towers
ICICI Towers
Bandra Kurla Complex
Bandra (E)
Mumbai.
Phone: 91-022-653 7914
Website: www.icicibank.com

Capital structure
31

The Authorized Capital of ICICI Bank is 214.75 Crores. The Issued, Subscribed and Paid
Up Capital is divided into 1113250642 equity shares @ Rs.10/- each.

Board of Directors
Board Members
Mr. K. V. Kamath, Chairman
....................................................
Mr. Sridar Iyengar
....................................................
Mr. Homi R. Khusrokhan
....................................................
Mr. Lakshmi N. Mittal
................................................
Mr. Narendra Murkumbi
.................................................
Dr. Anup K. Pujari
.................................................
Mr. Anupam Puri
..................................................
Mr. M.S. Ramachandran
..................................................
Mr. M.K. Sharma
..................................................
Mr. V. Sridar
Prof. Marti G. Subrahmanyam
.........................................................
Mr. V. Prem Watsa
.........................................................
Ms. Chanda D. Kochhar,
Managing Director & CEO
.........................................................
Mr. Sandeep Bakhshi,
Deputy Managing Director
.........................................................

32

Mr. N. S. Kannan,
Executive Director & CFO
.........................................................
Mr. K. Ramkumar,
Executive Director
.........................................................
Mr. Sonjoy Chatterjee,
Executive Director

Board committee
Audit Committee

Board Governance Remuneration &

Nomination Committee

Mr. Sridar Iyengar, Chairman

Mr. M. K. Sharma, Alternate Chairman
Mr. Narendra Murkumbi
Mr. V. Sridar

Mr. M. K. Sharma, Chairman

Mr. K. V. Kamath
Mr. Anupam Puri
Prof. Marti G. Subrahmanyam

Corporate Social Responsibility

Committee

Customer Service Committee

Mr. M. K. Sharma, Chairman

Dr. Anup K. Pujari
Ms. Chanda D. Kochhar

Mr. K. V. Kamath, Chairman

Mr. Narendra Murkumbi
Dr. Anup K. Pujari
Mr. M. S. Ramachandran
Mr. M.K. Sharma
Ms. Chanda D. Kochhar

Credit Committee

Fraud Monitoring Committee

Mr. K. V. Kamath, Chairman

Mr. Narendra Murkumbi
Mr. M. S. Ramachandran Mr. M .K.
Sharma
Ms. Chanda D. Kochhar

Mr. M. K. Sharma, Chairman

Mr. K. V. Kamath
Mr. Narendra Murkumbi
Ms. Chanda D. Kochhar
Mr. Sandeep Bakhshi
Share Transfer & Shareholders'/
Investors' Grievance Committee
33

Risk Committee

Mr. K. V. Kamath, Chairman

Mr. Sridar Iyengar
Dr. Anup K. Pujari
Prof. Marti G. Subrahmanyam
Mr. V. Prem Watsa
Ms. Chanda D. Kochhar

Mr. M. K. Sharma, Chairman

Mr. Narendra Murkumbi
Mr. N. S. Kannan

Committee of Executive Directors

Ms. Chanda D. Kochhar, Chairperson
Mr. Sandeep BakhshiMr. N. S. Kannan
Mr. K. Ramkumar
Mr. Sonjoy Chatterjee

BUSINESS OBJECTIVE
Vision
To be the leading provider of financial services in India and a major global
bank.

Mission

We will leverage our people, technology, speed and financial capital to:
be the banker of first choice for our customers by delivering high quality,
world-class service.
Expand the frontiers of our business globally.
Play a proactive role in the full realisation of Indias potential.
Maintain a healthy financial profile and diversify our earnings across
businesses and geographies.

34

Maintain high standards of governance and ethics.

Contribute positively to the various countries and markets in which we
operate.
Create value for our stakeholders.

TECHNOLOGY Used In ICICI Bank

ICICI use many type of advance technological software like Pinnacle 7.0 and
Pinnacle7.016.Among 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. However, due to its proprietary hardware, the cost of procurement,
upgrades and administration was soaring. The closed box architecture of
Teradata imposed restrictions on scalability. Secondly, querying and loading
35

could not happen simultaneously. Queries could only be run during business
hours because the loading of data had to take place during off business hours.
This meant that the refresh rate of EDW was delayed, so queries may not reflect
the most current data. 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. The solution would have to address not only current issues, but
accommodate future growth expectations and business requirements. 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 was the price-toperformance 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. Commending the improvements
achieved, Amit Sethi, Joint General Manager, ICICI bank says, "What impressed
us wasthat even with overall lower costs, we could achieve significantly better
query performanceafter implementing the Sybase enterprise warehouse
solution." ICICI Infotech today launched an enterprise resourceplanning (ERP)
solution for the small and medium enterprises.
The ERP package - Orion Advantage - comes bundled with an HP dual
processor Xeon
server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh
and has a 15-user license.
An ERP package helps a manufacturer or any other business implementing it to
manage all the important parts in the company such as product planning, parts
purchasing, maintaining inventory and interacting with suppliers and customers.
ICICI Infotech officials told a press conference here today that Orion Advantage
offered a set of business practice solutions for industry segments such as
engineering, auto ancillary, pharmaceuticals, chemicals and IT distribution.
Besides the cost advantage, the ERP package also came pre-configured. ICICI
Infotech had mapped the processes specific to each industry segment into the
package.
Mr. Manoj Kunkalienkar, Executive Director and President, ICICI Infotech, said
that smalland medium enterprises (SMEs) offered a good market and ICICI
Infotech hoped to become a leading solution provider to this segment.

Mr. R.K. Kanthi, Deputy General Manager, ICICI Infotech, said there was no ERP
packagefor the SMEs that bundled the server, database and operating system
right now. That was the advantage ICICI Infotech offered to SMEs as Orion
36

Advantage came bundled and preconfigured. Besides the high cost of generic
ERP packages, their implementation time as far as SMEs were concerned was
also long. Orion Advantage could be installed in 45 days.
ICICI Infotech had signed up six customers so far for the package and hoped to
garner a 15 per cent market share of the SME segment, whose number in the
country was estimated at 2.30 lakh.
Mr. K.S. Natarajan, Managing Director, Trident Pneumatics Pvt Ltd of
Coimbatore, one of the companies that had installed Orion Advantage, said that
the company had tried three other ERP packages, all of which had failed, before
settling on Orion Advantage.
Mr Kunkalienkar said that ICICI Infotech planned to move the two development
centers in Chennai into a single location and double the staff strength from 300
now in the next two years.
The Chennai centers were involved in research and development of Orion ERP
solutions and Premia, an insurance package.

We can see that the how technology gives the best results in the below diagram.
There are drastically changes seen in the use of Internet banking, in a year 2001
(2%) and in the year 2008 (25%).
These type of technology gives the freedom to retail customers.
Centralized Processing Units

Derived Economies Of Scale

Electronic
Processing

Reduced Transaction Cost

Data Warehousing,CRM

Innovative Technology Application

Improve Cost Efficiency,Cross

Sell
Provide
New
Or
Superior
Products

Straight

through

The countrys middle class accounts for over 320 million people. In correlation
with thegrowth of the economy, rising income levels, increased standard of living,
and affordability of banking products are promising factors for continued
expansion.

37

PRODUCTS AND SERVICES

PERSONAL BANKING
Loan Product

Auto loan
Loan against
security
Loan against
property
Personal loan
Credit card
2- wheeler loan
Commercial
vehicles finance
Home loans
Retail business
banking
Tractor loan
Working capital
finance
Construction
Equipment finance
Health care
finance
Education loan
Gold loan

Cards

Credit Card
Debit Card
Prepaid Card

Deposit Product

Savings A/C
Current A/C
Fixed Deposits
Demat A/C
Safe Deposit
Lockers

Investment &
Insurance

Payment Services

Net Safe
Merchant
Prepaid Refill
Bill Pay

Mutual Funds
Bonds
Knowledge Centre
Insurance
General And
Health Insurance
Equity And
Derivatives
Mudra Gold Bar

Access To Bank

Net Banking
One View
InstaAlert Mobile
Banking
38

-------------------------------Forex services
------------------------------- Product And
Services
Trade Services
Forex Service
Branch Locater
RBI Guidelines

Visa Bill Pay

InstaPay
Direct Pay
VisaMoney
Transfers
E-Monies
Electronic Funds
Transfer
Online Payment
Of Direct Tax

ATM
Phone Banking
Email Statements
Branch Network

WHOLESALE BANKING
Corporate

Funded Services
Non Funded
Services
Value Added
Services
Internet Banking

Small and Medium

Enterprises

Funded Services
Non Funded
Services
Specialized
Services
Value Added
Services
Internet Banking

Financial Institutions and

Trusts
BANKS

Clearing Sub-Membership
RTGS Sub-Membership
Fund Transfer
ATM Tie- Ups
Corporate Salary A/C
Tax Collection

Financial Institutions
Mutual Funds
Stock Brockers
Insurance Companies
Commodities Business
Trusts

39

NRI SERVICES
Accounts & Deposits

Rupee Saving A/C

Rupee Current A/C
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts For Returning Indians

Remittances

North America
Uk
Europe
South East Asia
Middle East
Africa
Others
Quick Remit
India Link
Check Lock Box
Telegraphic/ Wire Transfer
Fund Transfer Cheques/Dds/Tcs

Investment & Insurances

Mutual Funds
Insurance
Private Banking
Portfolio Investment Scheme

Loans

Home Loans
Loans Against Securities
Loans Against Deposits
Gold Card Credit
40

Payment Services

Access To Bank

Net Safe
Bill Pay
InstaPay
DirectPay
VisaMoney
Online Donation

Net Banking
One View
InstaAlert
ATM
Phone Banking
Email Statements
Branch Networks

PRODUCTS
ICICI Bank offers wide variety of Deposit Products to suit your requirements.
Coupled with convenience of networked branches/ ATMs and facility of Echannels like Internet and Mobile Banking, ICICI Bank brings banking at your
doorstep. Select any of its deposit products and provide your details online and
their representative will contact you for Account Opening.

SAVING ACCOUNTS
ICICI Bank offers customers a power packed Savings Account with a
host of convenient features and banking channels to transact
through. So now customers can bank at their convenience, without
the stress of waiting in queues.

Special Savings Account:

41

The Special Savings Account has been designed keeping in mind the specific needs of
organizations such as Trusts, Associations, Societies, Councils, Clubs etc. It provides
organizations solutions with added value and is ideal for tax exempted entities.

LIFE PLUSSenior citizens savings account

LIFE PLUS,a special savings account for senior

citizens from ICICI Bank is packed with a host of
benefits,designed keeping your unique financial
requirements in mind.
Special senior citizens desk to cater to all banking transactions, so that you
dont wait in queues.
Higher interest rate on FD/RD:avail the combined benefits of safety,felexibility
and attractive returns with ICICI Bank Fixed Deposit and Recurring Deposit.
Free special senior citizen LIFE PLUS debit card.
Money multiplies facility.
Extended banking hours allows you to visit our branches,as per your
convenience.
Anywhere banking access to various services,ICICI Bank has to offer
anytime,anywhere and from any place,including branches,ATMs and phone
banking.
Nomination facility available.
Quarterly average balance(QAB) requirement of Rs.5000.
Quarterly physical statements are delivered to your doorstep to absolutely
free of cost.
Passbook on request.

Young Stars Account:

Young Stars is a banking service for children, aged
1day -18 years, brought to you by ICICI Bank to help
the parents meet the present and future aspirations
that they hold for their child. It offers various savings
and investment options to the parent along with
teaching the child to manage his/her personal finance
in a more responsible and independent manner.Young Stars will guide your child through
the world of banking -through checking the account balance, fun zones and special
pages on the internet. It makes banking a pleasure and of course teaches your child to
manage their personal finances.With the pocket money that you transfer to your child's

42

account, you can even shop with him / her at Young Stars very own shopping page. You
can even open a recurring deposit in your child's name.
Once you are done with your 'banking', you can access your child's account with all the
fun links to special zones designed to suit your child's area of interests and also impart
knowledge on the current events of the world.

Advantage woman savings account

The ICICI Bank Advantage Woman Account enables
todays independent women to enjoy hassle-free banking
services. Besides the core ICICI Bank advantage, the
Advantage Woman Savings Account is packed with special
benefits for our women customers. Enjoy your present and
plan for the future with ICICI Banks Advantage Woman
Savings Account.Advantage Woman offers a specially designed woman's debit card
which helps you shop and save simultaneously, manages your household expenditures
and comes with a bag full of offers attached to it.

Special International Womans Debit Card with lots of offers.

Free unlimited access to any banks ATM.
Bill Pay facility & Multi Channel Access.
Payable-at-par cheque book.
Nomination facility available.
Zero balance facility with an RD of Rs.2000 or Quarterly Average Balance (QAB)
requirement of Rs. 10,000.

Current Accounts:
Every business requires efficient banking facilities to support its business activities. ICICI
Bank offers premium quality service, unfolding a wide array of class products. With
technology leadership and service the bank is able to meet some of the most
challenging financial needs of clients.A Current Account is one that is required by
Businessman, Joint stock companies, Institutions, Public authorities,
public corporations etc. Any business that has numerous banking
tranactions need a current account as it

Allows running account supporting unlimited withdrawals and deposits.

Is meant for convenience and not to save money.

Roaming Current Account

43

Only Roaming Current Account from ICICI Bank travels the distance with customers
business. With advanced technological features such as MCC and LCC, banking
needs are well taken care of, customers can access their accounts at over 500
networked branches across the country.
So while customers take care of their business, ICICI Banks Roaming Current
Account simplifies banking for them.

Salary Accounts
Salary Account is a feature rich corporate payroll account with benefits for both
corporates and its employees.

T he process of drawing cheques for salaries is replaced

by sending a single ASCII file to the bank and the amount
is directly credited into the employees salar y account
Cuts down payroll processing workload
Salar y Account can be opened with minimum 10
employees
Instant credit of salaries

ICICI Bank Salary Account is a benefit-rich payroll account for Employers and
Employees.As an organization, you can opt for our Salary Accounts to enable easy
disbursements of salaries and enjoy numerous other benefits too.With ICICI Bank Salary
Accounts your employees will enjoy the convenience of :

Having the largest network of ATMs at their command,

Free 24 hour Phone Banking,

Free Internet Banking.

All that the organization would require to do is to send ICICI Bank an advice (in form of a
cheque/debit instruction, ecs, etc) for the total salary amount along with the salary
details of the designated employees in a soft and hard copy format and we will credit the
respective employees' accounts as per your statement of advice.ICICI Bank Salary
Accounts benefits you in more than one ways:

Reduces paperwork.

Saves remittance costs.

Employees receive instant credit of salaries. More convenient than ECS. Besides all of
the above, employees automatically become ICICI Bank account holders with special
benefits and privileges of 8-8 banking, Investment advisory and much more...

44

Fixed deposits:
Fixed deposits are options which help you grow your
money thus creating wealth in a safer and secure way.
ICICI provides its customers with various kinds of Fixed
deposit facilities that are flexible and cater to customers
who have different needs and wants in their fixed
deposits.
ICICI provides a Fixed Deposit that allows customers to
deposit their money for just as long as you wish.

Wide range of tenures 15 days to 10 years.

Choice of investment plan traditional and cumulative deposits.
Partial withdrawal allowed.
Loan facility available you can avail loan up to 90% of principal and accrued
interest.
Auto renewal facility you can choose this option so that the deposit can be
renewed on maturity.
Interest compounded quarterly.
Additional interest rate of 0.5% for senior citizens.

Recurring Deposits:
ICICI Bank Recurring Deposits are an ideal way to
invest small amounts of money every month and end up
with a large kitty on maturity.High recurring billing and
recurring payments can be a drain on your finances
and hence large investments may seem a plan away.
Recurring deposits aims to encourage savings without
putting any stress on customers finances by making them to put a lump sum amount in
fixed deposit in one go.The recurring deposit also attracts high rate of return that are
identical to the fixed deposit rates and most importantly no TDS is applicable in it .the
minimum balance of deposit is of Rs.500 and thereafter in multiples of Rs.100 the
minimum period is 6 months and thereafter in multiples of 3 months,nomination facility is
also available.

Security Deposits:
45

A few Corporates stipulate to their new employees to provide Security Deposit to reduce
attrition. ICICI Banks proposal for the employee is to
keep the Security Deposit in the form of a Fixed Deposit
(FD) with the Bank. The employee cannot withdraw such
FDs without the consent of the company and the
company has the right to withdraw the FD in the event of
employee leaving the organization before a certain
stipulated period.

ICICI Bank Tax-Saver Fixed Deposit

ICICI Banks Tax-Saver Fixed Deposit enables you to save tax and earn high returns. A
dual benefit option structured to maximise your advantage. ICICI Banks Tax Saver FD is
the perfect solution for your investment needs.

EEFC Account
Indian exports have surged over the last decade owing to an unprecedented boom in
sectors like software, biotechnology, gems, jewellery, textiles etc. As a result of this, the
volume of inward remittances has also increased significantly. To shield the firms
engaged in regular export and import from the exchange rate fluctuations RBI has
allowed parking of foreign currency by exporters in an account designated as Exchange
Earners Foreign Currency Account (EEFC). EEFC accounts are Current Accounts held
in foreign currency with authorized dealers of foreign exchange in the country.

Resident Foreign Currency (Domestic) Account

Do you want to save money while buying foreign currency for travelling abroad? You can
buy travellers cheques, foreign currency in cash and foreign currency demand draft for
your expenses overseas. If you are a frequent traveller, you may not want to go through
the hassles of buying foreign currency every time you travel abroad.
The Reserve Bank of India has now made it easier for you to access foreign currency by
permitting a foreign currency account (domestic) for resident Indians. In line with RBI
guidelines, ICICI Bank has come up with a scheme that helps you get rid of all your forex
worries. You can park your foreign currency in ICICI Bank under RFC (D) account. Noninterest bearing Resident Foreign Currency (D) (RFC (D)) with ICICI Bank can be
maintained in four major currencies (USD, EURO, GBP and Japanese Yen)

PRIVILEGE BANKING:
Privilege banking service ensures preferential treatment to its customers.

46

Silver privilege A/c

Waiver of multi-city cheque book usage up to Rs. 1,00,000 per month.

Waiver of DD/PO charges for upto Rs.50,000 per day.

Preferential rates of gold coins,deposits lockesr &foreign exchange.

Quarterly average balance requirement of Rs.25000.

Gold privilege A/c

Priority processing at all ICICI Bank branches and customer care.

Free usage of payable -at-par chequebook.
Free international gold debit card with higher daily withdrawal and spend limit.
Waiver of DD/PO charges for up to Rs.100,000 per day.

Free anywhere banking facility.

Prefrential rates for gold coins,deposit lockers and foreign exchange.

Quarterly Average Balance(QAB) requirement of Rs.50000.

Titanium privilege A/c

Branch relationship manager supported with phone banking relationship

manager.
Priority processing at ICICI Bank brancghes and customer care.
Free international titanium debit card with higher daily withdrawal and
spend limit.
Free anywhere banking facility.
Free usage of multy-city cheque book.
Free physical monthly account statement.
Complete waiver on DD/PO charges.
Preferential rates for gol coins,deposit lockers and foreign exchange.
Quarterly average balance (QAB)requirement of Rs.75000 and Total
Relationship Value(TRV)of Rs. 5,00,000.

Family banking:
Superior product benefits of privilige banking,wealth management
and global private client(GPC) available to all the members of your
family while the required minimum balance can be maintained in
any of the accounts.

Access to superior benefits for the entire family.

47

Flexibility to maintain balances across account.

Lower minimum balance requirement at individual customer level.

Single family bank convenience for the entire family and easier funds
management.

Outward Remittance:
Send money to your loved ones abroad
ICICI Bank offers you a simple way to send money outside India. Our Outward
Remittance facilities make remitting money abroad quick, and reliable. ICICI Banks
Outward Remittance is the solution for your all your needs. Be it money for education,
gift money or maintenance for loved ones or donation for a cause. Our extensive
network gives us reach to most parts of the world.

Advantage Deposit
Advantage Deposit is a combination of fixed deposit and mutual fund investment,
offering you the safety of a fixed deposit and the returns of an equity fund. Advantage
Deposit counters equity-market fluctuations through Systematic Investment Plans.

Combination of a Fixed Deposit (with monthly interest payout) and Systematic

Investment Plan (SIP) of a Mutual Fund.
Re-investment of monthly interest payout of Fixed Deposit into systematic
investment plan of Mutual Fund.
Automatic debits to account through Standing Instruction / ECS debit mandate.

New Pension System of Government of India

ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION
SYSTEM launched on May 1, 2009 by the Government of India. The scheme, promoted
by the PFRDA (Pension Fund Regulatory and Development Authority, Government of
India), is a first of its kind in India and is being launched pan-India by 22 other POP's as
well.
The purpose of this pension scheme is to promote security of income to its subscribers
in their old age. The scheme will empower a subscriber to plan his own retirement and
pension. It not only will help him save for life after retirement but also is a good
investment tool as the returns are market-driven. For optimum returns, the Government
has appointed six fund managers for subscribers to choose from.

48

 LOANS
HOME LOAN
Interest rates on home loans have come down considerably in
the last few years. Individuals who opted for housing loans in
the years gone by, are still servicing them at 17% to 21% per
annum. Quite a price to pay, since one can get a loan today for
around 12% per annum. In such a case, you can opt for a
balance transfer. Under this scheme, customers can replace
their existing old high interest loan by a cheaper (equal to
applicable current rates) loan. ICICI Home Finance will not
only finance the balance amount of outstanding loan but also your prepayment charges
to the old housing finance company.
The result:

A lower EMI with the same tenure .

A reduced tenure with the same EMI.

A reduced tenure and EMI .
The same EMI and tenure but an additional amount as a loan.

PERSONAL LOANS
ICICI Bank Personal Loans are easy to get and absolutely
hassle free. With
minimum documentation you can now secure a loan for an
amount up to Rs.
15 lakhs.

Loans for salaried & self employed individuals.

Loans are available from Rs. 20,000 to Rs. 15 Lakhs.

Repayment tenures from 12 - 60 months.

No Security,Collateral or Guarantors required.

Loans can be used for any purpose with no questions asked regarding the end
use of the loan.

A balance transfer facility available for those who want to retire any higher debt.

49

All loan repayments are done via equated monthly instalments (EMI).

CAR LOAN

The NO. 1 financier for car loans in the country. Network of

more than 1500 channel partners in over 780 locations. Tieups with all leading automobile manufacturers to ensure the
best deals. Flexible schemes & quick processing. Hasslefree application process on the click of a mouse.

COMMERCIAL VEHICLE LOAN

Reaches you through more than 700

locations across the country.
Range of products under one umbrella.
Funding of various products like HCVs,
Buses, MCVs, LCVs, 3 wheelers & used
vehicle.
Range of services on existing loans & extended products like funding of new
vehicles, refinance on used vehicles, balance transfer on high cost loans, top up
on existing loans, Xtend product, working capital loans & other banking
products..
Preferred financier status with most of the leading manufacturers.
Simple documentation.
Quick turn around time.
Flexible financing solutions to meet the individual requirement.

TWO WHEELER LOANS:

"Zoom" away in your favourite two wheeler. ICICI provides
attractive schemes at competitive interest rates.
Finance facility available for all two wheelers ranging
from mopeds to motor bikes.
Now avail Finance upto 90%* of the On Road Cost of the
vehicle, repayable in convenient tenure options ranging
from 6 months to 36 months*.

50

Ride Easy Pay Easy with ICICI Bank Two Wheeler Loans.
In an unlikely case of your not meeting our norms NO PROBLEM - you can still
avail our loan, any blood relative can be your co-applicant.
Existing ICICI Bank Customers ride away on your favourite Two Wheeler by
availing Loan On Phone*-- a facility to get an instant loan over the phone!! Apply
for loan online, call or through sms.

FARM EQUIPMENT LOANS:

ICICI is the preferred financier for almost all leading

tractor manufacturers in the country.
ICICI finances farm equipments in over 381 locations
spread across the country.
Provides fast processing of files with easy
documentation.
Flexible repayment options in tandem with the

farmer's seasonal liquidity.

Monthly, Quarterly and Half-yearly repayment patterns to choose from.
Comfortable repayment tenures from 1 year to 6 years.

CONSTRUCTION EQUIPMENT LOAN

Having funded infrastructure for over 4 decades, ICICI
understands the need of the customers better. ICICI Bank
offers attractive financial packages through their excellent
distribution network. The products are customised for new
entrepreneur to large business houses. ICICI has tie-up with
leading construction equipment manufacturers for wide
range of products. The Bank take over existing high cost loans at competitive terms
resulting in huge savings and is quick in processing due to easy formalities and one
time sanction of loans for disbursement over a period of time.

OFFICE EQUIPMENT LOAN:

Minimum documentation required . Doorstep Service. Competitive Interest
rates.
Flexible repayment structure. Hassle-free application process with the click of a
mouse.
Details on your application status online.

MEDICAL EQUIPMENT LOAN:

51

Professional doctors are aware of the distinct advantages that the latest medical
equipment can give their patients. ICICI Bank Medical Equipment Loans supports
professionals in their effort to give the best to their patients. It's our humble way of
being involved in a noble profession.
Loans are offered for:

Purchase of New equipments.

Takeover of Existing loans.

Our Key features are:

Doorstep Service.
Funding in more than 150 locations across the country.
The bank provides Competitive interest rates.
ICICI also offers flexible repayment structure.

LOAN AGAINST SECURITIES

Loans against Securities enables customers to obtain loans against their securities. So
they get instant liquidity without having to sell their securities.
All customers have to do is pledge your securities in favour of ICICI Bank The Bank will
then grant them an overdraft facility upto a value determined on the basis of the
securities pledged by them. A current account will be opened and customer can
withdraw money as and when they require. Interest will be charged only on the amount
withdrawn and for the time span utilised.
ICICI offer loans against:

Demat Shares
RBI Relief Bonds
Mutual Funds Units
India Millennium Deposits (IMDs)
ICICI Bank Bonds
Life Insurance Policies (Single Premium)

52

CREDIT CARDS:
ICICI Bank Credit Cards give you the facility of cash,
convenience and a range of benefits, anywhere in the world.
These benefits range from life timefree cards, Insurance
benefits, global emergency assistance service,discounts, utility
payments, travel discounts and much more.

DEBIT CARDS:
The ICICI Bank Debit Card is a revolutionary form of cash
that allows customers to access their bank account around
the clock, around the world.The ICICI Bank Debit Card can
be used for shopping at more than 100,000 merchants in
India and 13 million merchants worldwide.

TRAVEL CARD:

Presenting ICICI Bank Travel Card. The Hassle Free way to

Travel the world. Traveling with US Dollar, Euro, Pound
Sterling or Swiss Francs; Looking for security and
convenience; take ICICI Bank Travel Card. Issued in duplicate.
Offers the Pin based security. Has the convenience of usage
of Credit or Debit card.

PRE PAID CARDS:

ICICI Bank brings to you a complete bouquet of pre-paid
cards providing payment solutions at your fingertips. ICICI
Bank pre-paid cards are a safe &convenient way for
associate payments, disbursements, gifting & small ticket
transactions. Pre-paid cards are available on a VISA

53

platform thus providing accessibility to over one lakh merchant establishments & cash
withdrawal from all VISA ATMs in India.

INVESTMENTS

ICICI Bank cares about

all needs. Along with
Deposit products and
Loan offerings, ICICI
Bank assists people to
manage their finances by providing various investment options ranging from ICICI
Bank Tax Saving Bonds to Equity Investments through Initial Public Offers and
Investment in Pure Gold. ICICI Bank facilitates following investment products:
ICICI Bank Tax Saving Bonds
Government of India Bonds
Investment in Mutual Funds
Initial Public Offers by Corporate
Investment in "Pure Gold"
Foreign Exchange Services
Senior Citizens Savings Scheme, 2004
Customers can invest in above products through any of ICICI bank branches. For select
products ICICI Bank also provides the ease of investing through electronic channels like
ATMs and Internet (ICICIdirect.com)

ICICI BANK BONDS

All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA" by ICRA
indicating the highest degree of safety for your money.
Investment in ICICI Bank Bonds are eligible for tax rebate under Sec 88 to the
full extent possible.
Bonds are listed on BSE, NSE.

54

GOI BONDS

8% Savings Bonds (Taxable), 2003.

Low risk.
Reasonable investment tenure.
Nomination facility available.
Cannot be traded in secondary market.
Interest income taxable.

Mutual Funds
Mutual Funds pool money of various investors to purchase a wide variety of securities
while
pursuing a specific goal. Selection of Securities for the purpose is done by specialists
from the
field. Returns generated are distributed to the Investors.
Mutual Fund Companies offer various schemes. Investors can choose any particular
Fund/Scheme or mix of Funds/Schemes depending upon their perception towards risk.
Investment is done on the basis of prevailing Net Asset Values of various schemes.
Mutual Funds Investments are subject to Market Risks.

Types of Funds Sold

ICICI Bank helps investor determine which types of funds you need to meet your
investment goals. This may include the following types of funds:
Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemes
etc.
Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc.
Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child
education Schemes etc.
ICICI Bank helps investors identify an appropriate mix of Mutual Fund schemes for their
portfolio using asset allocation strategies.
Through ICICI Bank investor can invest in various schemes of multiple mutual funds with
decent performance record. investor can take the aid of ICICI Banks various research
reports on mutual funds and their schemes before choosing a scheme for investment.

55

ICICI Bank offers investment in Mutual Funds through Multiple Channels. With ICICI
Bank, investor can invest in Mutual Funds through following channels.
ICICI Bank Branches
ICICI Bank ATMS
ICICIdirect.com
And provide a Dedicated workforce to serve clients.

Before being deputed, our officers complete a comprehensive training program

and, once deputed, they receive thorough instructions in financial planning skills
and techniques

Throughout their careers officers also attend programs to update their skills. All
officers in charge of Mutual Funds are certified professionals by AMFI
(Association of Mutual Funds in India)
Many of these officers also hold professional degrees like - MBA, CA, ICWA, and
CFA etc.

ICICI keeps the investors updated on the latest happenings in the Mutual Fund industry
and the various financial markets through regular electronic updates (daily & weekly)
through Emails. ICICI also send out a monthly magazine on investments to their
customers.

Initial public offerings (IPO)

Investor can invest in IPOs online through www.icicidirect.com with same convenience of
investing in equities - hassle-free and with zero paper work. Also, get in-depth analyses
of new IPOs issues (Initial Public Offerings) which are about to hit the market. IPO
calendar, recent IPO listings, prospectus/offer documents and live prices will help you
keep on top of the IPO markets.

ICICI Bank Pure Gold

Gold has been traditionally the most favored form of investment for Indians. In fact,
India,
even today is amongst the highest consumers of Gold in the world. However, the Gold
market
remains largely unorganized with reliability and convenience remaining the key issues
for
gold buyers in the country.ICICI Bank with its `Pure Gold' offer attempts to bridge the
gap

56

between the need of the customers for buying gold and availability of an organized
avenue to
satisfy that need, by taking care of the two key components:Reliability and Convenience.
Reliability 24 Carat ICICI Bank Pure Gold is imported from Switzerland. This Gold
carries a
99.99% Assay Certification, signifying highest level of purity, as per international
standards.
Convenience
ICICI Bank Pure Gold is competitively priced based on daily prices in the international
bullion market. Currently, gold is available in 2.5g, 5g, 8g, 20g and 50g categories.

PRIVATE BANKING
Benefits:
Comprehensive range of products and services
-Savings Account, Fixed Deposits, Recurring Deposits, Quantum Optima, Current
Accounts,
-Resident Foreign Currency (Domestic) Accounts etc.
-Asset Products- Home Loans, Car & Personal Loans, Loan Against Securities etc.
-Investments- Government of India Bonds, Mutual Funds, Capital Gain Bond etc.
-Insurance
-Web Trade and Demat Accounts
-Gold Coins & Bureau de Change
-International Debit and Credit cards
-And many more....
Exclusivity and Convenience
-Dedicated Officer
-Separate interaction area in the branch
-Anywhere Banking facility
-Exclusive Phone Banking service
-Competitive Pricing
-Reduced rates for products and services
-Several Complimentary Offers
-Value-linked benefits

57

Competitive Pricing
-Reduced rates for products and services
-Several Complimentary Offers
-Value-linked benefits

SERVICES

INVESTMENT SERVICES

DematServices
A Demat Account allows employees transact in shares instantaneously in a safe
and secure manner.

ReliefBonds/MutualFunds/Insurance
Salary Account customers can now invest in Government of India relief and
savings bonds, a basket of mutual funds, foreign exchange facilities and
Insurance products through ICICI Bank.

GoldCoin
Employees can buy 24 karats Pure Gold, which ICICI Bank brings to you. Each
coin comes to you straight from Switzerland. Refined to 99.99% fine gold and
sealed with a unique Certificate of Authencity- guaranteeing you its purity.

FOREX SERVICES
ICICI Bank's Foreign Exchange Services will help you organize your foreign exchange in
the most hassle free manner. Whether its Foreign Currency, Travelers Cheques or
Travel Card, ICICI Bank Foreign Exchange Services is a one-stop solution to your
foreign exchange requirement.

58

NRI SERVICES
Wherever people may be, in India or abroad, ICICI Bank has created a wide range of
products and services that provide customers complete financial solutions. Helping them
to make the right decisions at the right time and can be rest assured that they are in the
safe and trustworthy hands of ICICI bank.
Deposit Products:

1. NRE Account: An NRI can open a Non-Resident External Account(NRE

Account)with any bank in India. The account not only lets customers manage their
money that they earn in India (as permitted by FEMA Regulations) but also of the money
earned abroad. The money in the account and the interest earned on it can be sent back
outside India without any authorization from RBI. The Account can be opened and
funded in any permissible currency, and is later converted into Indian Rupees. This
Account offers dual benefits of high returns as offered by the fixed deposits and liquidity
as offered by the savings account. The Account helps customers take care of all their
financial needs, quickly and conveniently. In addition to attractive rupee interest rates
customers get free money transfers, easy access for the customer as well as for his/her
family back in India, and a free mandate card for the loved ones in India.
2 . NRO Account: The Non-Resident Ordinary Account (NRO Account) allows
customers to hold the money they have earned in India such as rent, dividends,
pensions etc. They can open the account and can fund it in any permissible currency
and is later converted into Indian Rupees. NRO account offers attractive exchange rates
upon conversion of foreign currency into Indian Rupees. This account to offers high
returns and liquidity. However, the interest earned on the principal amount in the account
can be sent back after the deductions of tax in India.
3. FCNR Account:A Foreign Currency Non Resident Account (FCNR Account) allows
customers to maintain funds as Term Deposits in various foreign currencies, thereby
guarding customers against fluctuating exchange rates. Under this account both the
principal amount and the interest can be sent back fully, and are taxable in India. The
tenures range from 12 to 36 month
4. RFC Account: By opening a Resident Foreign Currency Account
(RFC Account)
customers can maintain funds as Term deposits in various foreign currencies even after
they have returned to India. Both the principal and the interest can be remitted outside
India. The tenures range from 1month to 36months.

59

Advisory Services
Private Equity Placement
ICICI Bank's Small Enterprises Group's (SEG) Investment Banking team is dedicated to
provide you niche and exclusive investment banking services.
The ICICI Bank Edge

Capital Raising
At times for a growing company, the amount of capital that a promoter can infuse
in the business becomes limited. Businesses can be self sufficient for capital
needs in their nascent and initial growth phases. However to meet expansion and
growth plans, external capital is imperative. We at ICICI Bank, with our lending
experience, fully understand this and help clients raise equity to fund growth. We
have developed a strong network of domestic and international investors who are
keen to partner with such success stories in India and these players solicit our
advice for investing into such companies. .
Buy And Sell Side Advisory
Inorganically adding growth to a business or hiving off non-core activities or
opportunity to realize right value for the business created or an instance of taking
a company on a bigger scale are the ways to strategize today. We at ICICI Bank
provide assistance on both buy side and sell side transaction. With a large client
franchise built, more than 10,000 asset clients and international linkages in
developed economies, ICICI Bank can bring in the best synergy partner to
conclude a sell side or buy side advisory assignment.
Special Situation Solutions
Backed by institutional legacy, in-depth understanding and linkages with key
stakeholders in the process of turnaround, ICICI Bank's Investment Banking
team can design solutions for special situations like CDR, BIFR, OTS, etc. Count
on us to turn around the capital structure of your company and bring in additional
capital for growth.

Online Services
ICICI Bank provides a variety of online services.now these is no need of walking up to
the bank branch, every time you need to do your banking. As you can do a lot of it

60

online. From paying your bills to transferring funds, booking your rail/air tickets,
shopping, sending a money order and doing lots more.

AWARDS & RECOGNITION

For the third year in a row ICICI Bank has won The Asset Triple A Country Awards for Best Domestic
Bank in India.

ICICI Bank won the Most Admired Knowledge Enterprises (MAKE) India 2009 Award. ICICI Bank
won the first place in "Maximizing Enterprise Intellectual Capital" category, October 28, 2009.

Ms Chanda Kochhar, MD and CEO was awarded with the Indian Business Women Leadership
Award at NDTV Profit Business Leadership Awards , October 26, 2009.

ICICI Bank received two awards in CNBC Awaaz Consumer Awards; one for the most preferred auto
loan and the other for most preferred credit Card, on September 30, 2009.

Ms. Chanda Kochhar, Managing Director & CEO ranked in the top 20 of the World's 100 Most
Powerful Women list compiled by Forbes, August 2009.

Financial Express at its FE India's Best Banks Awards, honoured Mr. K.V. Kamath, Chairman with
the Lifetime Achievement Award , July 25, 2009.

ICICI Bank won Asset Triple A Investment Awards for the Best Derivative House, India. In addition
ICICI Bank were Highly commended , Local Currency Structured product, India for 1.5 year ADR

61

GDR linked Range Accrual Note., July 2009.

ICICI bank won in three categories at World finance Banking awards on June 16, 2009
Best NRI Services bank
Excellence in Private Banking, APAC Region
Excellence in Remittance Business, APAC Region.

ICICI Bank Mobile Banking was adjudged "Best Bank Award for Initiatives in Mobile Payments and
Banking" by IDRBT, on May 18, 2009 in Hyderabad.

ICICI Bank's b2 branchfree banking was adjudged "Best E-Banking Project Implementation Award
2008" by The Asian Banker, on May 11, 2009 at the China World Hotel in Beijing.

ICICI Bank bags the Best bank in SME financing (Private Sector) at the Dun & Bradstreet Banking
awards 2009.
ICICI Bank NRI services wins the Excellence in Business Model Innovation Award in the eighth
Asian Banker Excellence in Retail Financial Services Awards Programme.

ICICI Bank's Rural Micro Banking and Agri-Business Group wins WOW Event & Experiential
Marketing Award in two categories - Rural Marketing programme of the year and Small Budget On
Ground Promotion of the Year. These awards were given for Cattle Loan 'Kamdhenu Campaign' and
'Talkies on the move campaign' respectively.

ICICI Bank's Germany Branch has been certified by Stiftung Warrentest. ICICI Bank is ranked 2nd
amongst 57 savings products across 19 banks

ICICI Bank Germany won the yearly banking test of the investor magazine uro in the call
moneycategory.

The ICICI Bank was awarded the runner's up position in Gartner Business Intelligence and
Excellence Award for Asia Pacific for its Business Intelligence functions.

ICICI Bank's Organisational Excellence Group was recently awarded ISO 9001:2008 certification by
TUV Nord. The scope of certification comprised processes around consulting and capability building

62

on methods of quality & improvements.

ICICI Bank has been awarded the following titles under The Asset Triple A Country Awards for 2009:
Best Transaction Bank in India
Best Trade Finance Bank in India
Best Cash Management Bank in India
Best Domestic Custodian in India
ICICI Bank has bagged the Best Cash Management Bank in India award for the second year in a
row. The other awards have been bagged for the third year in a row.

ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the Canadian Helen
Keller Centre's Fifth Annual Luncheon in Toronto. The award was given to ICICI Bank its longstanding support to this unique training centre for people who are deaf-blind.

63

Chapter 3

RESEARCH METHODOLOGY

Research methodology
The procedure adopted for conducting the research requires a lot of attention as
it has direct bearing on accuracy, reliability and adequacy of results obtained. It is
due to this reason that research methodology, which we used at the time of
conducting the research, needs to be elaborated upon. It may be understood as
a science of studying how research is done scientifically. So, the research
methodology not only talks about the research methods but also considers the
logic behind the method used in the context of the research study. Research
64

Methodology is a way to systematically study and solve the research problems. If

a researcher wants to claim his study as a good study, he must clearly state the
methodology adapted in conducting the research the research so that it way be
judged by the reader whether the methodology of work done is sound or not.

The Research Methodology here includes: Objective of study

Meaning of Research.
Research Problem.
Research Design.
Data Collection method.
Analysis and interpretation of Data
Limitation of study

OBJECTIVE OF THE STUDY

Objectives are the ends that states specifically how goal be achieved. Every
study must have an objective for which all the efforts have been done. Without
objective no research can be conducted and no result can be obtained. On the
65

basis of objective all the research process is followed. Objectives are the main
aspect of every study. The objective of the study
gives direction to go through the research problem. It guides the researcher and
keeps him on track. I have two objectives regarding my research project. These
are shown below :1. Primary objective
2. Secondary objective
1. Primary objective :-

1) To study the software used in ICICI Bank.

2) To analyse the financial statements of the corporation to assess its
true financial position by the use of ratios.
2. Secondary objective :1) To find out the shortcomings in ICICI Bank.
2) To see whether ICICI Bank is going well or not in different areas.

IMPORTANCE OF THE STUDY

By FINANCIAL PERFORMANCE ANALYSIS OF ICICI Bank we would

be able to get a fair picture of the financial position of ICICI Bank.

By showing the financial performance to various lenders and creditors it is

possible to get credit in easy terms if good financial condition is
maintained in the company with assets outweighing the liabilities.

Protecting the property of the business.

Compliances with legal requirement.

66

Meaning of Research:
Research is defined as a scientific and systematic search for pertinent
information on a specific topic. Research is an art of scientific investigation.
Research is a systematized effort to gain now knowledge. It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge. Research is an academic activity and this term should be used in a
technical sense. Research comprises defining and redefining problems,
formulating hypothesis or suggested solutions. Making deductions and reaching
conclusions to determine whether they if the formulating hypothesis. Research is
thus, an original contribution to the existing stock of knowledge making for its
advancement. The search for knowledge through objective and systematic
method of finding solutions to a problem is research.

Research Problem
The first step while conducting research is careful definition of Research
Problem. To ERR IS THE HUMAN is a proverb which indicates that no one is
perfect in this world. Every researcher has to face many problemswhich
conducting any research thats why problem statement is defined to know which
type of problems a researcher has to face while conducting any
study. It is said that,
Problem well defined is problem half solved.
Basically, a problem statement refers to some difficulty, which researcher
experiences in the context of either a theoretical or practical situation and
wants to obtain the solution for the same.
The problem statement here is:TO

MAKE A FINANCIAL ANALYSIS OF FINANCIAL

STATEMENTS OF ICICI BANK

67

Research Design
A research designs is the arrangement of conditions for collection and analysis
data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research Design is the conceptual structure with in
which research in conducted. It constitutes the blueprint for the collection
measurement and analysis of data. Research Design includes and outline of
what the researcher will do form writing the hypothesis and it operational
implication to the final analysis of data. A research design is a framework for the
study and is used as guide in collection and analyzing the data. It is a strategy
specifying which approach will be used for gathering and analyzing the data. It
also include the time and cost budget since most studies are done under these
two cost budget since most studies are done under theses tow constraints. The
design is such studies must be rigid and not flexible and most focus attention on
the following:

What is the study about?

Why is the study being made?
Where will the study be carried out?
What type of data is required?
Where can be required data be found?
What period of time will the study include?
What will be sample design?
What techniques of data collection will be used?
How will the data be analyzed?
In what style will the report be prepared?

TYPES OF RESEARCH DESIGN :

EXPERIMENTAL RESEARCH DESIGN
EXPLORATORY RESEARCH DESIGN
68

 DESCRIPTIVE& DIAGNOSTIC RESEARCH

Exploratory Research Design: This research design is preferred when
researcher has a vague idea about the problem the researcher has to explore the
subject.
Experimental Research Design The research design is used to provide a
strong basis for the existence of casual relationship between two or more
variables.
Descriptive Research Design It seeks to determine the answers to who,
what, where, when and how questions. It is based on some previous
understanding of the matter.
Diagnostic Research Design It determines the frequency with which something
occurs or its association with something else.

RESEARCH DESIGN USED IN THE STUDY:

Descriptive research design is used in this study because it will ensure the
minimization of bias and maximization of reliability of data collected. Descriptive
study is based on some previous understanding of the topic. Research has got a
very specific objective and clear cut data requirements The researcher had to
use fact and information already available through financial statements of earlier
years and analyse these to make critical evaluation of the available material.
Hence by making the type of the research conducted to be both Descriptive and
Analytical in nature. From the study, the type of data to be collected and the
procedure to be used for this purpose were decided.

Data Collection Method

The process of data collection begins after a research problem has been
defined and research design ahs been chalked out. There are two types of
data
PRIMARY DATA It is first hand data, which is collected by researcher itself. Primary data is
collected by various approaches so as to get a precise, accurate, realistic and

69

relevant data. The main tool in gathering primary data was investigation and
observation. It was achieved by a direct approach and observation from the
officials of the company.
SECONDARY DATA - it is the data which is already collected by someone else.
Researcher has to analyze the data and interprets the results. It has always been
important for the completion of any report. It provides reliable, suitable, adequate
and specific knowledge.

TYPE OF DATA USED IN THE STUDY

The required data for the study are basically secondary in nature and the data
are
collected from

The audited reports of the company.

INTERNET which includes required financial data collected form ICICI
Banks official website i.e www.icici.com and some other websites on the
internet for the purpose of getting all the required financial data of the
bank and to get detailed knowledge about ICICI Bank for the convenience
of study.
Brouchers of ICICI Bank.
The valuable cooperation extended by staff members and the branch
manager of ICICI bank,dharmshala contributed a lot to fulfill the
requirements in the collection of data in order to complete the project.

Methods of data analysis

The data collected were edited, classified and tabulated for analysis. The
analytical tools used in this study are:
ANALYTICAL TOOLS APPLIED:
The study employs the following analytical tools:
1. Comparative statement.
2. Trend Percentage.
3. Ratio Analysis.
4. Cash Flow Statement.

70

Limitations of study

Difficulty in data collection.

Limited knowledge about the bank in the initial stages.
Branch manager was reluctant for giving financial data of
the bank.
The analysis and interpretation are based on secondary
data contained in the published annual reports of ICICI
Bank for the study period.
Due to the limited time available at the disposable , the
study has been confined for a period of 5 years (20052009).
Ratio itself will not completely show the companys good or
bad financial position.
Inter firm comparison was not possible due to the non
availability of competitors data.
The study of financial performance can be only a means to
know about the financial condition of the company and
cannot show a through picture of the activities of the
company

71

Chapter 4

FINANCIAL ANALYSIS

INTRODUCTION OF THE TOPIC

72

Meaning Of Financial Statements

Financial statements refer to such statements which contains financial
information about an enterprise. They report profitability and the financial position
of the business at the end of accounting period. The team financial statement
includes at least two statements which the accountant prepares at the end of an
accounting period. The two statements are:

The Balance Sheet

Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet
mirrors the financial position on a particular date in terms of the structure of
assets, liabilities and owners equity, and so on and the Profit And Loss account
shows the results of operations during a certain period of time in terms of the
revenues obtained and the cost incurred during the year. Thus the financial
statement provides a summarized view of financial positions and operations of a
firm.

Meaning Of Financial Analysis

The term financial analysis is also known as analysis and interpretation of
financial statements refers to the process of determining financial strength and
weakness of the firm by establishing strategic relationship between the items of
the Balance Sheet, Profit and Loss account and other operative data.
The first task of financial analysis is to select the information relevant to the
decision under consideration to the total information contained in the financial
statement. The second step is to arrange the information in a way to highlight
significant relationship. The final step is interpretation and drawing of inference
and conclusions. Financial statement is the process of selection, relation and
evaluation.

Features of Financial Analysis

o To present a complex data contained in the financial statement in simple
and understandable form.

73

o To classify the items contained in the financial statement in convenient

and rational groups.

To make comparison between various groups to draw various conclusions.

Purpose of Analysis of financial statements

To know the earning capacity or profitability.

To know the solvency.

To know the financial strengths.

To know the capability of payment of interest & dividends.

To make comparative study with other firms.

To know the trend of business.

To know the efficiency of mgt.

To provide useful information to mgt.

Procedure of Financial Statement Analysis

The following procedure is adopted for the analysis and interpretation of
financial statements: The analyst should acquaint himself with principles and postulated of
accounting. He should know the plans and policies of the management so
that he may be able to find out whether these plans are properly executed
or not.
The extent of analysis should be determined so that the sphere of work
may be decided. If the aim is find out. Earning capacity of the enterprise
then analysis of income statement will be undertaken. On the other hand,
if financial position is to be studied then balance sheet analysis will be
necessary.

74

 The financial data be given in statement should be recognized and

rearranged. It will involve the grouping similar data under same heads.
Breaking down of individual components of statement according to nature.
The data is reduced to a standard form.
A relationship is established among financial statements with the help of
tools & techniques of analysis such as ratios, trends, common size, fund
flow etc.
The information is interpreted in a simple and understandable way. The
significance and utility of financial data is explained for help in decision
making.
The conclusions drawn from interpretation are presented to the
management in the form of reports.

Types Of Financial Analysis

There are different ways of analysis the financial statements:

1. On The Basis Of Process Of Analysis

a) Horizontal Analysis: This is used when the financial statement of a
number of years are to be analysed. Such analysis indicates the trends
and the increase or decrease in various items not only in absolute figures
but also in percentage form. This analysis indicates the strengths and
weaknesses of the firm. This analysis is also called as dynamic analysis
because it also shows the trend of the business.
b) Vertical Analysis : This is used when financial statements of a particular
year or on a particular date are analyzed. For this type of analysis we
generally use common size statements and the ratio analysis. It involves a
study of quantitative relationship among various items of balance sheet
and profit and loss account. This type of analysis is static analysis
because this is based on the financial results of one year. Vertical analysis
is useful when we have to compare the performance of different
departments of the same company.

75

Among these two types of analysis, horizontal analysis is more useful

because it brings out more clearly the trends of working of a firm. This gives
us more concrete bases for future planning.

2. On The Basis Of Information Available

a) Internal Analysis: This analysis is based on the information available to
the business firm only .Hence internal analysis is made by the
management. Internal analysis is more reliable and helpful for financial
decisions.

b) External Analysis : This analysis is made on the basis of published

statements,reports and informations. This analysis is made by external
parties such as creditors,investors,banks,financial analysis etc. external
analysis is less reliable in comparison to internal analysis because of
limited and often incomplete information.

3. On The Basis Of Number Of Firms

a) Inter-Firm Analysis : When financial analysis of two or more companies
or firms are analyzed and compared over a number of accounting period,
it is called inter-firm analysis.
b) Intra -Firm Analysis : intra-firm analysis is concerned with the analysis
of financial performance of different units or departments or segments of the
same enterprise or company. Similarly when financial statements of two or more
years of the same firm are analyzed and compared it is also called as intra-firm
analysis.

4. On The Basis Of Objectives

a) Accounting Analysis: Accounting analysis is analysis of past financial
performance and involves examining how generally accepted accounting
principles and conventions have been applied in arriving at the values of assets,
liabilities, revenues and expenses.
b) Prospective Analysis : Prospective analysis involves developing forecasted
financial statements keeping in view the changes that are likely to shape and
affect the business given the assumptions about these changes and the limitation
of the forecasting technique used. This is quite complicated analysis.
76

Methods/Tools Of Financial Analysis

A number of methods can be used for the purpose of analysis of financial
statements. These are also termed as techniques or tools of financial analysis.
Out of these, and enterprise can choose those techniques which are suitable to
its requirements. The principal techniques of financial analysis are:a.
b.
c.
d.
e.
f.
g.

Comparative financial statements

Common-size statements
Trend analysis
Ratio analysis
Funds flow analysis
Cash flow analysis
Break even point analysis

a. Comparative

Financial Statements:

When financial statements figures for two or mote years are placed side-side to
facilitate comparison, these are called comparative Financial Statements. Such
statements not only show the absolute figures of various years but also provide
for columns to indicate to increase ort decrease in these figures from one year to
another. In addition, these statements may also show the change from one year
to another on percentage form. Such cooperative statements are of great value
in forming the opinion regarding the progress of the enterprise.
Objectives purpose or significance of comparative financial statements
1.To simplify data

2.To make inter period/inter-firm comparison

3.To indicate the trends
4.To enable forecasting
5.To indicate the strengths and weaknesses of the firm
6.To compare the performance
7.To analyse expenses
8.To analyse profits

Tools for comparison of financial statements

77

Comparative financial statement is a tool of financial analysis that depicts change

in each item of the financial statement in both absolute amount and percentage
term, taking the item in preceding accounting period as base.
Comparison and analysis of financial statements may be carried out using the
following tools:
1.Comparative Balance Sheet : The comparative balance sheet shows
increase and decrease in absolute terms as well as percentages ,in various
assets ,liabilities and capital. A comparative analysis of balance sheets of two
periods provides information regarding progress of the business firm.
The main purpose of comparative balance sheet is to measure the short- term
and long-term solvency position of the business.
2. Comparative Income Statement : Comparative income statement is
prepared by taking figures of two or more than two accounting periods,to enable
the analyst to have definite knowledge about the progress of the
business.Compartative income statements facilitate the horizontal analysis since
each accounting variable is analysed horizontally.
b. Common- Size Statements:
Common size statements are such statements in which the items of financial
statements are covered into percentage of common base. In common-size
income statement, by assuming net sales as 100(i.e %)and other individual items
are converted as percentage of this. Similarly, in common size balance sheet
,total assets are assumed to be 100 (i.e %) and individual assets are expressed
as percentage.

Objectives of common size statements

1. Presenting the change in various items in relation to total assets or total
liabilities or net sales.
2. Establishing a relationship.
3. Providing a common base for comparison.

78

Types of common size statements

1. Common-Size Balance Sheet : A common size balance sheet is a
statement in which total of assets or liabilities is assumed to be equal to
100 and all the figures are expressed as percentage of the total. That is
why it is known as percentage balance sheet.
Common-size balance sheet facilitate the vertical analysis since each item
of the Balance Sheet is analyzed vertically.
2. Common-Size Income Statement: Common-size income statement is a
statement in which the figures of net sales is assumed to be equal to 100
and all other figures of profit and loss A/c are expressed as percentage
of net sales.this statement facilitate the vertical analysiss since each
accounting variable is analyzed vertically. One can draw conclusion,
regarding the behaviour of expenses over period of time by examining
these percentages.

c. Trend Analysis:
Trend percentage are very useful is making comparative study of the financial
statements for a number of years. These indicate the direction of movement over
a long tine and help an analyst of financial statements to form an opinion as to
whether favorable or unfavorable tendencies have developed. This helps in
future forecasts of various items. For calculating trend percentages any year may
be taken as the base year. Each item of bease year is assumed to be equal to
100 and on that basis the percentage of item of each year calculated.

d. Ratio Analysis:
Meaning :
Absolute figures expressed in financial statements by themselves are
meaningfulness. These figures often do not convey much meaning unless

79

expressed in relation to other figures. Thus, it can be say that the relationship
between two figures, expressed in arithmetical terms is called a ratio.

According to R.N. Anthony.

A ratio is simply one number expressed in terms

of
another. It is found by dividing one number into the
other.

TYPES OF RATIOS
1.
2.
3.
4.

Proportion or Pure Ratio or Simple ratio.

Rate or so many Times.
Percentage
Fraction.

OBJECTS AND ADVANTAGES OR USES OF RATIO

ANALYSIS
1.
2.
3.
4.
5.
6.
7.
8.
9.

Helpful in analysis of financial statements.

Simplification of accounting data.
Helpful in comparative study.
Helpful in locating the weak spots of the business.
Helpful in forecasting
Estimate about the trend of the business
Fixation of ideal standards
Effective control
Study of financial soundness.

LIMITATION OF RATIO ANALYSIS

1.
2.
3.
4.
5.

False accounting data gives false ratios

Comparisons not possible of different firms adopt different
accounting policies.
Ratio analysis becomes less effective due to price level
change
80

6. Ratios may be misleading in the absence of absolute data.

7. Limited use of a single Ratio.
8. Window-Dressing
9. Lack of proper standards.
10. Ratio alone are not adequate for proper conclusions
11. Effect of personal ability and bias of the analyst.

CLASSIFICATION OF RATIOS
In view of the financial management or according to the tests satisfied,
various ratios have been classifieds as below:
Liquidity Ratios : These are the ratios which measure the short-term solvency
or financial position of a firm. These ratios are calculated to comment upon the
short-term paying capacity of a concern or the firms ability to meet its current
obligations.
Long Term Solvency and Leverage Ratios : Long-term solvency ratios
convey a firms ability to meet the interest cost and repayment schedules of its
long-term obligation e.g. Debit Equity Ratio and Interest Coverage Ration.
Leverage Ratios.
Activity Ratios: Activity ratios are calculated to measure the efficiency with
which the resource of a firm have been employed. These ratios are also called
turnover ratios because they indicate the speed with which assets are being
turned over into sales e.g. debtors turnover ratio.
Profitablity Ratios: These ratios measure the results of business operations or
overall performance and effective of the firm e.g. gross profit ratio, operating ratio
or capital employed. Generally, two types of profitability ratios are calculated.
(a) In relation to Sales, and
(b)In relation in Investment

FUNCTIONAL CLASSIFICATION IN VIEW OF

FINANCIAL MANAGEMENT OR CLASSIFICATION
ACCORDING TO TESTS
81

Liquidity
Ratios

Long-term
Solvency and
Leverage
Ratios

Activity Ratios Profitability

Ratios

-Current Ratio
-Liquid Ratio
(Acid) Test or
Quick Ratio.
-Absolute liquid or
-Cash Ratio.
-Debtors
Turnover Ratio
-Creditors Turnover
Ratio
-Inventory Turnover
ratio

Financial
Operating
Composite
-Debt. Equity
Ratio
-Debt to Total
Capital Ratio
-Interest
Coverage Ratio
-Capital Gearing
Ratio

Inventory Turnover
Ratio.
Debtors Turnover
Ratio
Fixed Assets
Turnover Ratio
Total Asset Turnover
Ratio
Working Capital
Turnover Ratio.
Payables Turnover
Ratio
Capital Employed
Turnover Ratio

In Relation to
Sales.
Gross Profit Ratio.
Operating Ratio.
Operating Profit
Ratio.
Net Profit Ratio.
Expenses Ratio
In relation to
investments
Return on
Investments.
Return on capital.
Return on Equity
Capital.
Return on total
Resources
Earning per share.
Price Earning Ratio.

CASH-FLOW STATEMENT
A cash flow statement is a statement showing inflows (receipts) and
outflows (payments) of cash during a particular period. In other words, it is a
summary of sources and applications of each during a particular span of
time.

Objectives of Cash Flow Statement :

1.
2.
3.
4.
5.
6.
7.

Useful for Short-Term Financial Planning.

Useful in Preparing the Cash Budget.
Comparison with the Cash Budget.
Study of the Trend of Cash Receipts and Payments.
It explains the Deviations of Cash from Earnings.
Helpful in Ascertaining Cash Flow from various Separately.
Helpful in Making Dividend Decisions.

82

BALANCE SHEET OF ICICI BANK LTD.

2005,Mar 2006,Mar 2007,Mar2008,Mar2009.

CAPITAL AND
LIABILITIES:
Total Share
Capital
Equity Share
Capital
Share
Application
Money

As On Mar
(Rs. In crores)

2005

2006

2007

2008

2009

1086.75

1239.83

1249.34

1462.68

1463.29

736.75

889.83

899.34

1112.68

1113.29

0.02

0.00

0.00

0.00

0.00

83

Preference
Share Capital
Reserves
Revaluation
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities
And Provisions
Total
Liabilities

350.00

350.00

350.00

350.00

350.00

11813.20
0.00

21316.16
0.00

23413.92
0.00

45357.53
0.00

48419.73
0.00

12899.97
99818.78
33544.50
146263.25
21396.17

22555.99
165083.17
38521.91
226161.17
25227.88

24663.26
230510.19
51256.03
306429.48
38228.64

46820.21
244431.05
65648.43
356899.69
42895.39

49883.02
218347.82
67323.69
335554.53
43746.43

167659.42

251388.95

344658.12

399795.08

379300.96

6344.90

8934.37

18706.88

29377.53

17536.33

6585.07

8105.85

18414.45

8663.60

12430.23

91405.15
50487.35
5525.65
1487.61

146163.11
71547.39
5968.57
1987.85

195865.60
91257.84
6298.56
2375.14

225616.08
111454.34
7036.00
2927.11

218310.85
103058.31
7443.71
3642.09

4038.04

3980.72

3923.42

4108.89

3801.62

96.30

147.94

189.66

0.00

0.00

8702.59
167659.40

12509.57
251388.95

16300.26
344658.11

20574.63
399795.07

24163.62
379300.96

ASSETS:
Cash And
Balances With
RBI
Balances With
Banks,Money
At Call
Advances
Investments
Gross Block
Accumulated
Depreciation
Net Fixed
Assets
Capital Work In
Progress
Other Assets
Total Assets

Contingent
liabilities
Bills for
collection
Book
value(Rs.)
EPS

97507.79

119895.78

177054.18

371737.36

803991.92

9803.67

15025.21

22717.23

29377.55

36678.71

170.35

249.55

270.37

417.64

445.17

27.22

28.55

34.59

37.37

33.78
84

No. of
equity
shares

736716094

889823901

899266672

1112687495

1113250642

PROFIT AND LOSS ACCOUNT OF ICICI BANK LTD.

For The Year Ended Mar2005,Mar2006,Mar2007,Mar2008,Mar2009

2005

2006

2007

(Rs. In Crores)

2008

2009

INCOME:
85

Interest Earned
Other Income
Total Income
EXPENDITURE:
Interest
Expended
Operating
Expenses
Total Expenses
Operating Profit
Other Provision
And Contigencies
Provision For Tax
Net Profit
Extraordinary
Items
Profit B/F

9409.90
3416.14
12826.04

13784.49
4983.14
18767.63

22994.29
5929.17
28923.46

30788.34
8810.77
39599.11

31092.55
7603.72
38696.27

6570.89

9597.45

16358.50

23484.24

22725.93

3299.15

4479.51

6690.56

8154.18

7045.11

9870.04
2956
428.80

14076.96
4690.67
1594.07

23049.06
5874.40
2226.36

31638.42
7960.69
2904.59

29771.04
8925.23
3808.26

522
2005.20
0.00

556.53
2540.07
0.00

537.82
3110.22
0.00

898.37
4157.73
0.00

1358.84
3758.13
(0.58)

53.09

188.22

293.44

998.27

2436.32

Total
Preference
Dividend
Equity Dividend
Corporate
Dividend Tax
Pershare Data
Eps(Rs.)
Equity
Dividend(%)
Book Value(Rs)
Appropriations
Transfer To
Statutory
Reserve
Transfer To Other
Reserve
Proposed
Dividend/Transfer
To Govt
Balance C/F To
Balance Sheet
Total

2058.29
0.00

2728.29
0.00

3403.66
0.00

5156.00
0.00

6193.87
0.00

632.96
90.10

759.33
106.50

901.17
153.10

1227.70
149.67

1224.58
151.21

27.22
85.00

28.55
85.00

34.59
100.00

37.37
110.00

33.78
110.00

170.35

249.55

270.37

417.64

445.17

547.00

248.69

1351.12

1342.31

2008.42

600.01

1320.34

0.00

0.01

0.01

723.06

865.83

1054.27

1377.37

1375.79

188.22

293.44

998.27

2436.32

2809.65

2058.29

2728.30

3403.66

5156.01

6193.87

86

FINANCIAL STATEMENT ANALYSIS

Comparative Balance Sheet Of ICICI Bank From 2005-2006 To
2008-2009
PARTICULARS

2005-2006

2006-2007

2007-2008

(Rs. in crores)
2008-2009

Absolute
change

% of
change

Absolute
change

% of
change

Absolute
change

% of
change

Absolute
change

% of
change

153.08
9502.96

14
80

9.51
2097.76

0.8
10

213.34
21943.61

17
94

0.61
3062.2

.04
7

65264.39

65

65427.02

40

13920.86

(11)

Borrowings
Other Liabilities
and Provisions

4977.41
3831.71

15
18

12734.12
13000.76

33
51.5

14392.4
4666.75

28
12

(26083.23
)
1675.26
851.04

TOTAL CAPITAL
AND LIABILITIES

83729.55

50

93269.17

37

55136.96

16

(20494.12
)

(5.1)

21060.04
54757.96
(57.32)
51.64

42
60
(1.4)
54

19710.45
49702.49
(57.3)
41.72

27.5
34
(1.4)
28.2

20196.5
29750.48
185.47
(189.66)

22
15
5
-100

(8396.03)
(7305.23
(307.27)
0.00

(7.5)
(3.25)
(7.5)
0.00

7917.23
83729.55

37
50

23871.8
93269.16

81
37

5194.17
55136.96

10
16

(4485.58) (8)
(20494.11) (5.1)

CAPITAL
AND
LIABILITIES:
Capital

Reserves and
surplus
Deposits

2.5
2

ASSETS:
Investments
Advances
Fixed assets
Capital Work In
Progress
Current assets
TOTAL
ASSETS:

Interpretation

The capital of bank increased by 14% in 2005-06,0.8%

in 2006-07,17% in 2007-08,and .04 % in 2008-09.This
shows that there is fluctuation in the rate of increase in

87

the capital. In 2005-06 and 2007-08 the rate of increase

in capital is more than that of 2006-07 and 2008-09.
There is a huge fluctuation in the rate of increase in
reserves and surplus also. This shows that bank is
effectively utilizing its reserves and surplus.
In 2005-06 deposits increase by 65%,in 2006-07 it
increased by 40%,and an increase of 6% in 2007-08.in
2008-09 deposits fall by 11%.this shows that the bank
has repayed its deposits in this year.
The borrowings are also showing a fluctuating rate of
increase.in 2008-08 the borrowings have increased at a
very low rate.this shows that bank has repaid a large
amount of borrowings in this year and thereby reducing
the dependence on outside debt.
The investments are also increasing but with lower
rates compared to the preceding years.
Similarly advances rose by 60% in 2005-06,an increase
of 34% in 2006-07,15% increase in 2007-08 and finally
decresed by 3.25% in 2008-09.
Thre has been a consistent decline in the fixed assets
over years.in 2005-06 and 2006-07 it decreased by 1.4
% ,increased by 5% in 2007-08 and again decreasing
by 7.5% in 2008-09.this is mainly due to increase in the
rate of depreciation in the subsequent years.
A huge fluctuation is revealed from current assets. it
increased by 37% in 2005-06,rate of increase rose to
80% in 2006-07 and then the it increased at a much
lower rate i.e at 10%.this shows that the bank is
effectively ustilising its working capital.there is a fall in
current assets in 2008-09 by 8 %.this is mainly due to
the repayment of deposits in the years 2008-09.

88

1. Comparative Income Statement Of ICICI Bank From 20052006 To 2008-2009

(Rs. in
PARTICULARS

crores)
2005-2006

2006-2007

2007-2008

2008-2009

Absolute
change

% of
change

Absolute
change

% of
change

Absolute
change

% of
change

Absolute
change

% of
change

5941

46.3

10156

54.1

10676

37

(902.84)

(2.3)

Interest
expended
Operating
expenses
Total expenses

3026.56

46

6761.05

70.4

7125.74

43.5

(758.31)

(3)

1180.36

36

2211.05

49.3

1463.62

22

(1109.07

(14)

4206.92

43

8972.1

64

8589.36

37.2

(5.9)

Operating profit

1734.67

59

1183.73

25.2

2086.29

35.5

(1867.38
)
964.54

Provision and
contigencies

1199.8

126.1

613.58

28.5

1038.78

37.5

1364.14

36

534.87

27

570.15

22.4

1047.51

34

(399.6)

(10)

0.00

0.00

0.00

0.00

0.00

0.00

(0.58)

0.00

135.13

254.5

105.22

56

704.83

21

1438.05

144

670

32.55

675.37

25

1752.34

51.4

1037.87

20

INCOME:

Operating
income
EXPENDITURE:

Net profit for the

year
Extraordinary
items
Profit brought
forward
TOTAL PROFIT/
(LOSS):

89

12.1

Interpretation:-

The net profit shows a fluctuating trend i.e it increased by 27% in 200506,22.4% increase in 2006-07,and increased by 34% in 2007-08 and
finally if falls by 10% in2008-09.this may be due to decline in operating
income and inresed tax liability in the year 2008-09.
The interest expenses from the period 2005 to 2008 showed an increasing
trend but decresed in 2008-09 due to repayment of borrowings.

2. TREND ANALYSIS
Trend Percentage Of ICICI Bank From 2004-2005 To 2008-2009
(base year 2004 -05)

Percentage(%) figures

Particulars 2005

2006

2007

2008

2009

Deposits
Advances
Net profit

165
160
127

231
214
155

245
247
207

219
239
187

100
100
100

90

Interpretation:
There is a continous increase in the deposits till the year ending 2008 followed by
a downfall in the year ending 2009 due to repayment od deposits in this year.
Similarly advances also shows as increasing trend till the year ending 2008
followed by a slight downfall in the year ending 2009.
There has been a substantial increase in net profit till the year year ending
2008.In four years it has been more than double.
The overall performance of the bank is satisfactory.

3. RATIO ANALYSIS
CURRENT RATIO:
An indication of a company's ability to meet short-term debt obligations; the
higher the ratio, the more liquid the company is. Current ratio is equal to current assets
divided by current liabilities. If the current assets of a company are more than twice the
current liabilities, then that company is generally considered to have good short-term
financial strength. If current liabilities exceed current assets, then the company may
have problems meeting its short-term obligations.

91

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

Year
2005
2006
2007
2008
2009

Current Assets

Current Liabilities

(Rs. In crores)

(Rs. In crores)

21632.56
29549.79
53421.59
58615.76
54130.18

21396.16
25227.88
38228.64
42895.38
43746.43

Current Ratio
1.01
1.17
1.39
1.36
1.23

Interpretation:
An ideal solvency ratio is 2. The ratio of 2 is considered as a safe margin of solvency
due
to the fact that if current assets are reduced to half (i.e.) 1 instead of 2, then also the
creditors will be able to get their payments in full.
But here the current ratio is less than 2 and more than 1 which shows that the bank
have current assets just equal to the current liabilities which is not satisfactory as the
safety margin is very less or zero. Therefore the bank should keep more current assets
so that it can maintain a satisfactory safety margin.

LIQUID RATIO:
Liquid ratio is also known as Quick or Acid Test Ratio. Liquid assets refer to
assets which are quickly convertible into cash. Current Assets other stock and prepaid
expenses
are considered as quick assets.

92

Quick Ratio = Total Quick Assets

Total Current Liabilities
Quick Assets = Total Current Assets Inventory

2005
2006
2007
2008
2009

12929.97
17040.22
37121.33
38041.13
29966.56

21396.16
25227.88
38228.64
42895.38
43746.43

0.60
0.67
0.97
0.88
0.68

Interpretation:
A quick ratio of 1:1 is considered favourable because for every rupee of current
liability,there is atleast one rupee of liquid assets. A higher value of ratio is considered
favourable. Here this ratio is less than 1 in 2005,2006 & 2009 but in 2007 & 2008 it is
close to 1 which is not satisfactory. This means the bank has not managed its funds
properly in this particular period.Therefore bank should rationally utilise its funds to
maintain an ideal liquid ratio.

EARNING PER SHARE:

In order to avoid confusion on account of the varied meanings of the term capital

93

employed, the overall profitability can also be judged by calculating earning per share
with the help of the following formula:

Earning Per Equity Share = Net Profit after Tax Prefrence Dividend
No. of Equity shares
The earning per share of the company helps in determining the market price of the
equity shares of the company. A comparison of earning per share of the company with
another will also help in deciding whether the equity share capital is being effectively
used or not. It also helps in estimating the companys capacity to pay dividend to its
equity shareholders.

Year

2005
2006
2007
2008
2009

Net Income Available

For Shareholders

No. Of Equity
Shares

(Rs. In crores)

(Rs. In crores)

2005.2
2540.07
3110.22
4157.73
3758.13

73.6716
88.9823
89.9266
111.2687
111.325

EPS

27.22
28.55
34.59
37.37
33.78

Interpretation:
Earning Per Share is the most commonly used data which reflects the performance and
prospects of the company.It affects the market price of shares.
Here the Earning Per Share is shows a persistent increase till the year 2008 after that in
the year 2009 Earning Per share is followed by a downfall due to decline in profits.

94

DIVIDEND PER SHARE :

It is expressed by dividing dividend paid to equity shareholders by no. of equity
shares.this shows the per share dividend given to equity shareholders.It is very helpful
for potential investors to know the dividend paying capacity of the company.It affects the
market value of the company.

Dividend Per Share = Dividend Paid To Equity Shareholders

No. Of Equity Shares

Year

Dividend Paid
(Rs. In crores)

2005
2006
2007
2008
2009

632.96
759.33
901.17
1227.7
1224.58

No. Of Equity
Shares

DPS

(Rs. In crores)

73.6716
88.9823
89.9266
111.2687
111.325

8.59
8.53
10.02
11.03
11

Interpretation:

95

Here the Dividend Per Share is increasing year after year except a little decline in
2009.otherwise the dividend per share ratio of the bank is quite satisfactory which shows
the bank has a good dividend paying capacity.

NET PROFIT RATIO:

This ratio indicates the Net margin on a sale of Rs.100. It is calculated as follows:

Net Profit Ratio = Net Profit X 100

Net Sales
This ratio helps in determining the efficiency with which affairs of the business
are being managed. An increase in the ratio over the previous period indicates
improvement in the operational efficiency of the business. The ratio is thus on effective
measure to check the profitability of business.

Year
2005
2006
2007
2008
2009

Net Profit

Sales

(Rs. In crores)

(Rs. In crores)

2005.2
2540.07
3110.22
4157.73
3758.13

9409.9
13784.49
22994.29
30788.34
31092.55

Net Profit Ratio

(in %)
21.3
18.42
13.52
13.5
12.08

96

 Interpretation:
Although both the sales and net profit have increased during the above period
but the Net Profit Ratio of the bank is declining continuously. This is because of
the reason that net profits have not increased in the same proportion as of the
sales.

OPERATING PROFIT RATIO:

This ratio is calculated as follows:

Operating Profit Ratio =

Operating Profit X100

Net Sales

The difference between net profit ratio and net operating profit ratio is that net operating
profit is calculated without considering non-operating expenses and non-operating
incomes. If we deduct this ratio from 100,the result will be operating ratio. Higher
operating profit ratio enable the organization to recoup non-operating expenses out of
operating profits and provide reasonable return.

Year
2005
2006
2007
2008

Operating Profit

Sales

(Rs. In crores)

(Rs. In crores)

Operating Profit
Ratio (in %)

2956
4690.67
5874.4
7960.69

9409.9
13784.49
22994.29
30788.34

31.41
34.02
25.54
25.85

97

2009

8925.23

31092.55

28.7

Interpretation:
In the year 2005 & 2006 the operating profit is 31.41% & 34.02% respectively. After that
it has been consistently declined from the year 2007 till 2008 and again gaining
momentum in 2009. This may be due to the reason that operating expenses have been
increased more as compared to sales during the above period consequently reducing
the operating profits.Therefore the bank should check on unnecessary operating
expenses to correct this situation and to provide a sufficient return.

RETURN ON NET WORTH:

It measures the profitability of the business in view of the shareholders. It judges the
earning capacity of the company and the adequacy of return on proprietors
funds.Shareholders and potential investors are interested in this ratio.It is calculated as
below:

Return On Net Worth = Net Profit After Interest And Tax x 100
Shareholders Funds

Year

Net Profit After

Interest And Tax

Shareholder's Fund

(Rs. In crores)

(Rs. In crores)

Return On Net
Worth (in %)

98

2005
2006
2007
2008
2009

2005.2
2540.07
3110.22
4157.73
3758.13

12899.97
22555.99
24663.26
46820.21
49883.02

15.54
11.26
12.61
8.88
7.53

Interpretation:
The net profit after interest and tax have increased slowly till the year 2008 followed by a
downfall due to high interest payments,operating expenses and taxation
liability.consequently the networth ratio has declined considerably and has reduced to
more than half in the year 2009 than it was in 2005.

RETURN ON CAPITAL EMPLOYED:

It establishes relationship between profit before interest and tax and capital employed. It
indicates the percentage of return on the total capital employed in the business.This ratio
is also known as Return On Investment. It measures the overall efficiency and
profitabilityof the business in relation to investment made in business. It also shows how
efficiently the resources are used in the business.comparison of one unit with that of the
other or performance in one year with that of the same unit is possible. It is calculated as
below:

99

Year

2005
2006
2007
2008
2009

Net Profit Before

Interest And Tax
(Rs. In crores)
9098.09
12694.05
20006.54
28540.34
27842.9

Capital Employed
(Rs. In crores)
146263.25
226161.17
306429.48
356899.69
335554.53

Return On Capital
Employed (in %)
6.22
5.61
6.52
7.99
8.29

Interpretation:
The above table exhibit the return on capital employed ratio of the bank for last five
years.This ratio measures the earning of the net assets of the business. The ratio was
6.22% in year 2005. After that it rised to the tune of 5.61%,6.52%,7.99% and 8.29% in
year 2006, 2007, 2008 and year 2009 respectively. It lead to the conclusion bank rising
but very little proportion of return on capital employed.

DEBT- EQUITY RATIO:

The Debt-Equity ratio is calculated to find out the long-term financial position of the
firm.This ratio indicates the relationship between long-term debts and shareholders
funds.The soundness of long-term financial policies of a firm can be determined with the
help of this ratio.
It helps to assess the soundness of long-term financial policies of a business.It also
helps to determine the relative stakes of outsiders and shareholders.Long-term creditors
can assess the security of their funds in a business.it indicates to what extent a firm
depends upon lenders to meet its long-term financial requirements.A low Debt-Equity
ratio is considered better from the point of view of creditors.

100

Year
2005
2006
2007
2008
2009

Debt

Equity

(Rs. In crores)

(Rs. In crores)

154759.45
228832.96
319994.86
352974.87
329417.94

12899.97
22555.99
24663.26
46820.21
49883.02

Debt Equity Ratio

11.99
10.14
12.97
7.53
6.6

Interpretation:
The ratio shows the extent to which funds have been provided by long-term creditors
as compared to the funds provided by the owners.Here the Debt-Equity ratio for the
above period is always high.this shows that the bank is more relying on outside
funds as compared to internal sources of capital,in its capital structure. From the
long-term lenders point of view this ratio is not satisfactory.

PROPRIETORY RATIO:
It is also called shareholders equity to total equity ratio or net worth to total assets ratio
or equity ratio.It compares the shareholders funds to total assets.It is calculated by
dividing shareholders funds by total assets.

Proprietory Ratio = Shareholders Fund

Total Assets
101

It helps to determine the long-term solvency of a company.This ratio measures the

protection available to the creditors.Higher the ratio,lesser is the likelihood of insolvency
in future,as the management has to use lessor debts and vice versa.Thus,this ratio is of
great importance to the creditors.

Years

Shareholder's
Funds

Total Assets
(Rs. In crores)

Proprietory
Ratio

167659.4
251388.95
344658.11
399795.07
379300.96

0.07
0.08
0.07
0.12
0.13

(Rs. In crores)

2005
2006
2007
2008
2009

12899.97
22555.99
24663.26
46820.21
49883.02

Interpretation:
Above table exhibits the proprietary ratio of the bank for last five years . It was 7% in
2005,After that was 8% in year 2006. Similarly it was once again reduced to 7 % in the
year 2007. After 2007 it registered increase and was 12% and 13% in the year 2008 and
2009 respectively. Hence it leads to the conclusion owners have less than 13% stake in
the total assets of the bank. It is not a good sign as far the long term solvency is
concerned.

FIXED ASSETS TURNOVER RATIO:

102

It is also called as Sales to Fixed Assets Ratio.It measures the efficient use of fixed
assets.This ratio is a measure of efficient use of fixed assets.it is calculated as:
Fixed Assets Turnover Ratio = Cost of goods sold or Sales
Net Fixed Assets
It measures the efficiency and profit earning capacity of the business.Higher the
ratio,greater is the intensive utilization of fixed assets and a lower ratio shows under
utilization of the fixed assets.This ratio has a special importance for manufacturing
concerns where investment in fixed assets,is vey high and the profitability is significantly
dependent on the utilization of these assets.

Year
2005
2006
2007
2008
2009

Sales

Net Fixed Assets

(Rs. In crores)

(Rs. In crores)

9409.9
13784.49
22994.29
30788.34
31092.55

4038.04
3980.72
3923.42
4108.89
3801.62

Fixed Assets
Turnover Ratio
2.33
3.46
5.86
7.49
8.17

Interpretation:
Here the fixed assets employed in the business shows a decreasing trend except in the
year 2008 where fixed assets have again increased.This may be due to increase in rate
of depreciation in subsequent years. Neverthless,the fixed assets turnover ratio has
been consistently increasing.It indicates that fixed assets have been effectively used in

103

the business without much additional investment in the period of study and also the
capital is not blocked in fixed assets.

CREDIT-DEPOSIT RATIO:
This ratio is very important to assess the credit performance of the bank. The ratio
shows the relationship between the amount of deposit generated by the bank has well
as their deployment towards disbursement of loan and advances. Higher credit deposit
ratio shows overall good efficiency and performance of any banking institution.
Credit Deposit Ratio

Credits
100
Deposits

Credit means disbursement of advances

Deposit mean sum of fixed deposit,
Saving deposit and current deposit.

Year
2005
2006
2007
2008
2009

Advances

Deposits

(Rs. In crores)

(Rs. In crores)

91405.15
146163.11
195865.6
225616.08
218310.85

99818.78
165083.17
230510.19
244431.05
218347.82

Credit Deposit Ratio (in

%)
91
88
84
92
99

104

 Interpretation:
Above table exhibits credit deposit ratio of the bank during last 5 years. In the year
2005 ratio was 91% and it declined to 88% and 84%in the year 2006 and 2007
respectively. In the year 2008 and 2009 ratio was increased to 92% and 99%
respectively. it leads to conclusion that credit performance of the bank is very good.

4. CASH FLOW STATEMENT OF ICICI BANK

2005
2,527.20

2006
3,096.61

2007
3,648.04

Net cashflow-operating
activity

9,131.72

4,652.93

23,061.95

Net cash used in

investing activity

-3,445.24

-7,893.98

-18,362.67

-1,227.13

7,350.90

15,414.58

4,459.34

4,110.25

20,081.10

Profit before tax

Netcash used in fin.

activity
Net inc/dec in cash
and equivlnt
Cash and equivalnt
begin of year
Cash and equivalnt
end of year

8,470.63
12,929.9
7

12,929.9
7
17,040.2
2

17,040.22
37,121.32

2008
5,056.10
11,631.1
5
17,561.1
1
29,964.8
2

2009
5,116.97

683.55

-8,074.57

37,357.5
8
38,041.1
3

-14,188.149

3,857.88
1,625.36

38,041.13
29,966.56

105

Chapter 5

FINDINGS,SUGGESTIONS &
CONCLUSION

106

Findings
Profit before tax for the year ended March 31, 2009 (FY2009) was Rs.
5,117 crore (US$ 1,009 million), compared to Rs. 5,056 crore (US$ 997
million) for the year ended March 31, 2008 (FY2008).

Profit after tax for FY2009 was Rs. 3,758 crore (US$ 741 million)
compared to Rs. 4,158 crore (US$ 820 million) for FY2008 due to the
higher effective tax rate on account of lower proportion of income taxable
as dividends and capital gains.

Net interest income increased 15% from Rs. 7,304 crore (US$ 1,440
million) for FY2008 to Rs. 8,367 crore (US$ 1,650 million) for FY2009.
While the advances declined marginally year-on-year, the net interest
income increased due to improvement in net interest margin from 2.2% in
FY2008 to 2.4% in FY2009.

Operating expenses (including direct marketing agency expenses)

decreased 14% to Rs. 6,835 crore (US$ 1,348 million) in FY2009 from Rs.
7,972 crore (US$ 1,572 million) in FY2008. The cost/average asset ratio
for FY2009 was 1.8% compared to 2.2% for FY2008.
During the year, the Bank has pursued a strategy of prioritizing capital
conservation, liquidity management and risk containment given the
challenging economic environment. This is reflected in the Banks strong
capital adequacy and its focus on reducing its wholesale term deposit
base and increasing its CASA ratio. The Bank is maintaining excess
liquidity on an ongoing basis. The Bank has also placed strong emphasis
on efficiency improvement and cost rationalization. The Bank continues to
invest in expansion of its branch network to enhance its deposit franchise
107

and create an integrated distribution network for both asset and liability
products.
In line with the above strategy, the total deposits of the Bank were Rs. 218,348
crore (US$ 43.0 billion) at March 31, 2009, compared to Rs. 244,431 crore (US$
48.2 billion) at March 31, 2008. The reduction in term deposits by Rs. 24,970
crore (US$ 4.9 billion) was primarily due to the Banks conscious strategy of
paying off wholesale deposits. During Q4-2009, total deposits increased by Rs.
9,283 crore (US$ 1.8 billion), of which Rs. 5,286 crore (US$ 1.0 billion), or about
57%, was in the form of CASA deposits. The CASA ratio improved to 28.7% of
total deposits at March 31, 2009 from 26.1% at March 31, 2008.
The branch network of the Bank has increased from 755 branches at
March 31, 2007 to 1,438 branches at April 24, 2009. The Bank is also in
the process of opening 580 new branches which would expand the branch
network to about 2,000 branches, giving the Bank a wide distribution
reach in the country.
In line with the strategy of prioritizing capital conservation and risk containment,
the loan book of the Bank decreased marginally to Rs. 218,311 crore (US$ 43.0
billion) at March 31, 2009 from Rs. 225,616 crore (US$ 44.5 billion) at March 31,
2008.

Liquidity position
The liquid ratio of the bank in the year 2005,2006 and 2009 is 0.60,0.67and
0.68 respectively and the year 2007 and 2008 liquid ratio is 0.97 and 0.88
respectively which is close to 1.Though it is not equal to the ideal liquid ratio
of 1:1 but still its under control. So in nut shell, it can be concluded that the
liquidity position of the bank is quite satisfactory.
Capital adequacy and return on capital employed
The Banks capital adequacy at March 31, 2009 as per Reserve Bank of
Indias revised guidelines on Basel II norms was 15.5% and Tier-1 capital
adequacy was 11.8%, well above RBIs requirement of total capital adequacy
of 9.0% and Tier-1 capital adequacy of 6.0%. The above capital adequacy
takes into account the impact of dividend recommended by the Board.

108

Also the capital is being effectively utilized in the bank as it shows better
return on capital employed over years.
Asset quality
At March 31, 2009, the Banks net non-performing asset ratio was 1.96%.
During the year the Bank restructured loans aggregating to Rs. 1,115 crore
(US$ 220 million).
Dividend on equity shares
Since the dividend per share has shown a promising increase for the period
under study.It shows that the bank is following a sound dividend policy and is
capable of distributing higher dividends.in this way the investors will feel
investing in capital of the bank a much beneficial option and will be reluctant
to withdraw capital for a long time.
Earnings per share
The earnings per share for the period under study also shows a promising
increase.it suggests that bank has better profitability position and in future it
can be a better or attractive channel of investment for shareholders.
Higher trends of credit deposit ratio A positive sign
High trends of credit deposit ratio reveals that bank has performed satisfactorily
as regard to granting loans and advances to generate income. It suggests that
credit performance is good and the bank is doing its business good by fulfilling its
major objective as regards to granting loans and accepting deposits.

Conclusion
On the basis of various techniques applied for the financial analysis of ICICI
Bank we can arrive at a conclusion that the financial position and overall
performance of the bank is satisfactory. Though the income of the bank has
increased over the period but not in the same pace as of expenses. But the bank
has succeeded in maintaining a reasonable profitability position.
109

The bank has succeeded in increasing its share capital also which has increased
around 50% in the last 5 years. 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.
Equity shareholders are also enjoying an increasing trend in the return on their
capital. Though current assets and liabilities (current liquidity) of the bank is not
so satisfactory but bank has succeeded in maintaining a stable solvency position
over the years. As far as the ratio of external and internal equity is concerned, it
is clear that bank has been using more amount of external equity in the form of
loans and borrowings than owners equity. 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.

Suggestions
110

 Although the short term liquidity position is quite satisfactory as per

revealed by liquid ratio but the current ratio is below the ideal ratio of
2:1.So the bank should make efforts to increase its current assets to
maintain a safety margin and to maintain a better liquidity position.
The profitability of the bank for the period under study is not satisfactory.
Profits are increasing but not with same pace as of the expenditure due to
higher reliance on debt capital in the form of borrowings and loans for
financing capital structure. So in order to improve profitability, the bank
should reduce its dependence on external equities for meeting capital
requirements. Consequently, the interest expenses will decline and profits
will increase which is good for the bank. Similarly non productive
expenses should be curtailed to improve profitability.
Higher trend of credit deposit ratio reveals that the bank has performed
satisfactorily as regard to granting loans and advances to generate
income. It suggests that the credit performance of bank is good and it is
performing its business well by fulfilling the major objective of granting
credit and accepting deposit. So in order to have more creditability in the
market the bank should maintain its credit deposit ratio.
Though the bank has been successful in increasing its deposits but to
further improve upon such situation it can introduce some new and
attractive schemes for public. Such schemes can be in the form of higher
rate of interest and shorter maturity period for FDs etc.
Bank should try to finance more and more projects. Financing will help it to
earn higher amount of profits.
The bank is having a greater reliance on debt capital. The increasing
reliance on external equities may prove hazardous in the long run. So in
order to remedy this situation bank should increase its focus on internal
equities and other sources of internal financing.
Bank can also think for improving its day-to -day service to its clients.
Such service can be improved by providing prompt service and showing
an attitude of co-operation to its clients. It will help to give a kind of
confidence to the public and build a better public image.

111

 To achieve the objective of Rural development it should open more and

more branches in different rural areas of the country. It will facilitate in
providing help to rural poor farmers and other living below the poverty line.
Bank can appoint commission agents for different area who can
encourage general public to invest in the capital of the bank and make
more deposits in ICICI Bank.
The bank should simplify the procedure of advances for quick
disbursement.
To achieve organizational success a proper independent working
atmosphere should be developed to achieve desired objective more
effectively.
Last but not least, bank should adopt branch automation experiment to
control the operational cost.

112

CHAPTER 6

BIBLIOGRAPHY

113

BIBLIOGRAPHY
Books Reffered:
Accountancy. R.K. Mittal,A.K.Jain.
Financial Management- Theory and Practice. Shashi.K.Gupta , R.K.
Sharma.
Essentials of Corporate Finance 2nd edition ,Irwin /McGraw-Hill.Ross,
S.A.,R.W. Westerfield and B.D. Jordan.
Basic Financial Management ,8th edition ,Prentice -Hall,Inc. Scott, D.F.,
J.D Martin, J.W. Petty and A.Keown.

Internet websites:
Www.Icicibank.Com

114

 Www.Moneycontrol.Com
WWW.Money.Rediff.Com
Www.Wikipedia.Org
Www.Google.Com
Www.Scribd.Com
Www.Managementparadise.Com

115