A

PROJECT REPORT ON
“ICICI BANK FINANCIAL ANALYSIS”
IN PARTIAL
FULFILMENT FOR THE AWARD OF
THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
(2017-18)

Under the Guidance Of : Submitted By:

Ms. Kannu Agarwal Prince Nirvan
(Lecturer, MBA) M.B.A.
Roll No-1622370021
Submmted To:-
Deptt. of MBA

VIVEKANAND INSTITUTE OF TECHNOLGY & SCINECE

AFFILIATE TO AKTU, Lucknow
33-34 Kms. Delhi Hapur Road, NH-24
Jindal Nagar, Ghaziabad
 ACKNOWLEDGEMENT

No task is single man’s effort .Any job in this world however trivial or tough cannot be
accomplished without the assistance of others. An assignment puts the knowledge and
experience of an individual to litmus test. There is always a sense of gratitude that one
likes to express towards the persons who helped to change an effort in a success. The
opportunity to express my indebtness to people who have helped me to accomplish this
task.

I deem it a proud privilege to extend my greatest sense of gratitude to my Project Guide

Ms. Kannu Agarwal for the keen interest, inspiring guidance, continuous
encouragement, valuable suggestions and constructive criticism throughout the pursuance
of this report.

I am highly indebted to Prof. KUSHAGRA BHARDWAJ for sparing time from their
busy schedule for providing me with their able guidance at the time of need and helping
me to achieve the ultimate goal of the study. I would also like to thank MR. RAJ
(Branch Manager, ICICI Bank, Hapur) for their valuable support in helping me to gain
this opportunity of being associated with an organization of such esteem.

Last but not the least, it would be unfair if I don’t express my indebtness to my parents
and all my friends for their active cooperation which was of great help during the course
of my training project.
 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.
Chapter 1

INTRODUCTION OF BANKING
 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 19th July 1969, 14 major banks of the country were
nationalized and on 15th April 1980, 6 more commercial private sector banks were taken
over by the government.

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 Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank,
and Bank of Mysore were set up. Reserve Bank of India came in 1935.

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 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 day’s 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.

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 information’s 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 Private Sector Banks Foreign Banks In Regional Rural
India Banks

(26) (25) (29) (95)

 Nationalized  Old Private
Bank Banks
 Other Public  New Private
Sector Banks Banks
(IDBI)
 SBI And Its
Associates

(2) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks

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 Other SBI & its Associates

Public
 Allahabad Bank
Sector  State Bank of India
 Andhra Bank
 Bank Of Baroda Banks
 State Bank of Hyderabad
 Bank Of India
 Bank Of Maharastra IDBI  State Bank of Mysore
 Canara Bank (Industrial
 Central Bank Of India Development  State Bank of Patiala
 Corporation Bank Bank Of
 Dena Bank India)Ltd.  State Bank of Travancore
 Indian Bank
 Indian Overseas Bank  State Bank of Bikaner And
 Oriental Bank Of Jaipur
Commerce
 Punjab & Sind Bank
 Punjab National Bank
 Syndicate Bank (State Bank of Saurastra merged with SBI in the
year 2008 and State Bank of Indore In 2010)
 UCO Bank
 Union Bank Of India
 United Bank Of India
 Vijaya Bank
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:-

 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.

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.
21
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

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.
22
 Fact Files of Banks in India




The first Bank in Northern India to get ISO 9002 certification Punjab and Sind
for their selected branches. Bank

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

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

India’s oldest,largest and the most successful commercial bank offering the State Bank of India
widest possible rang of domestic,international and NRI products and
services,through its vast network in India and overseas.

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

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

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

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

23
 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 country’s 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.

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

24
INTRODUCTION TO ICICI BANK

History Of ICICI
 1955: The Industrial Credit and Investment Corporation of
IndiaLimited (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, whichwas oversubscribed.
 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 raiseEuropean Currency Units. : ICICI commences leasing
business.
 1984 : Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
 1985 : Mr. N.Vaghul appointed the seventh
Chairman andManaging Director of ICICI.
 1986 : ICICI became the first Indian institution to
receive A D
B
Loans. : ICICI, along with UTI, set up Credit Rating
Information

25
 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.
 1988 : Promoted TDICI - India's first venture capital company.

 1993 : ICICI Securities and Finance Company Limited in

jointventure 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 fromsingle 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
corporateidentity for the ICICI Group. : ICICI announced takeover of
Anagram Finance.
 1999 : ICICI launched retail finance - car loans, house
loans andloans 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
26
 approved the merger of 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 andICICI 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

launchedin 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 Bank’s representative office inaugurated in Dubai. ;
Representative office set up in China. : ICICI Bank’s UK
subsidiary launched. ; India’s 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. : India’s first multi-branded
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 India’s 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

27
 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.

 2006 : ICICI Bank became the first Indian bank to issue

hybridTier-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 Bank’s
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.

28
 2007 : ICICI Bank‘s 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 $5 billion) from both
domestic and international markets through a follow-on public
offer. ; ICICI Bank’s GBP 350 million international bond offering
marked the inaugural deal in the sterling market from an Indian
issuer and also the largest deal in the sterling market from Asia. ;
Launched India’s first ever jewellery card in association with
jewelry major Gitanjali Group. ; ICICI Bank became the first bank
in India to launch a premium credit card -- The Visa Signature
Credit Card. ; Foundation stone laid for a regional hub in
Gandhinagar, Gujarat. ; Introduced SME Toolkit, an online
resource centre, to help small and medium enterprises start, finance
and grow their business. ; ICICI Bank signed a multi-tranche dual
currency US$ 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.

29
 2008 : ICICI Bank enters US The US Federal Reserve
permittedICICI 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 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.

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

31
 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
.........................................................
Mr. N. S. Kannan,
Executive Director & CFO
.........................................................
Mr. K. Ramkumar,
Executive Director
.........................................................

32
 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 India’s potential.
Maintain a healthy financial profile and diversify our earnings across businesses
and geographies.
Maintain high standards of governance and ethics.
Contribute positively to the various countries and markets in which we operate.
Create value for our stakeholders.

33
 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 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-to-performance ratio where Sybase IQ emerged the
clear winner. During this rigorous testing, Sybase IQ delivered faster results on
independent hardware and operating systems with minimum infrastructure. 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

34
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 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 Straight through Processing  Reduced Transaction Cost

Data Warehousing,CRM  Improve Cost Efficiency,Cross Sell

Innovative Technology Application  Provide New Or Superior Products

The country’s 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.

35
 PRODUCTS AND SERVICES
 PERSONAL BANKING
Loan Product Deposit Product Investment &
Insurance
 Auto loan  Savings A/C  Mutual Funds
 Loan against  Current A/C  Bonds
security  Fixed Deposits  Knowledge Centre
 Loan against  Demat A/C  Insurance
property  Safe Deposit  General And Health
 Personal loan Lockers Insurance
 Credit card  Equity And
 2- wheeler loan Derivatives
 Commercial  Mudra Gold Bar
vehicles finance
 Home loans
 Retail business
banking
 Tractor loan
 Working capital
finance
 Construction
 Equipment finance
 Health care finance
 Education loan
 Gold loan
Cards Payment Services Access To Bank
 Credit Card  Net Safe  Net Banking
 Debit Card  Merchant  One View
 Prepaid Card  Prepaid Refill  InstaAlert Mobile
 Bill Pay Banking
--------------------------------  Visa Bill Pay  ATM
Forex services  InstaPay  Phone Banking

36
--------------------------------
 Product And
Services
 Trade Services
 Forex Service
Branch Locater
 RBI Guidelines
 WHOLESALE BANKING
Corporate
 Funded Services
 Non Funded
Services
 Value Added
Services
 Internet Banking
 Direct Pay  Email Statements
 VisaMoney  Branch Network
Transfers
 E-Monies Electronic
Funds Transfer
 Online Payment Of
Direct Tax
Small and Medium Financial Institutions
Enterprises and
Trusts
 Funded Services BANKS
 Non Funded
Services  Clearing Sub-Membership
 Specialized Services  RTGS Sub-Membership
 Value Added  Fund Transfer
Services  ATM Tie- Ups
 Internet Banking  Corporate Salary A/C
 Tax Collection
Financial Institutions
Mutual Funds
Stock Brockers
Insurance Companies
Commodities Business
Trusts
37
  NRI SERVICES

Accounts & Deposits Remittances

 Rupee Saving A/C  North America

 Rupee Current A/C  Uk
 Rupee Fixed Deposits  Europe
 Foreign Currency Deposits  South East Asia
 Accounts For Returning Indians  Middle East
 Africa
 Others
Quick Remit
India Link
Check Lock Box
Telegraphic/ Wire Transfer
Fund Transfer Cheques/Dds/Tcs

Investment & Insurances Loans

 Mutual Funds  Home Loans

 Insurance  Loans Against Securities
 Private Banking  Loans Against Deposits
 Portfolio Investment Scheme  Gold Card Credit

Payment Services Access To Bank

 Net Safe  Net Banking

 Bill Pay  One View
 InstaPay  InstaAlert
 DirectPay  ATM

38
  VisaMoney  Phone Banking
 Online Donation  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 E-channels 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:

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 PLUS”Senior 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 don’t wait in queues.

39
  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 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 today’s

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
Bank’s 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 Woman’s Debit Card with lots of offers.

 Free unlimited access to any bank’s ATM.
 Bill Pay facility & Multi Channel Access.
 Payable-at-par cheque book.

40
  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 Bu s i ne s s ma n , J o i nt st o c k c om p a n ie s ,
I n st i t ut i o n s, Pu bl i c a u t h or it i e s, p u bl i c c o r p or a ti o n s et c. An y b u si n e s s t h at h as
n u m er o u s b a n ki n g tr a n ac t i o ns n e e d a c u r re n t a c c o u n t a s i t

Allows running account supporting unlimited withdrawals and deposits.

 Is meant for convenience and not to save money.

Roaming Current Account

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 Bank’s 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 h e p r o c es s of d ra wi n g c h e q ue s fo r sa l ar i e s i s r e pl a c e d b y
s e n d i n g a s i n gl e ASCI I f il e to th e ba n k a n d t h e a m o u nt is di r e ct l y
c r e di t e d i nt o th e em p l o y ee s sa l ar y a cc o u n t
 Cu t s d o wn p a yr o l l p r o ce s s i n g wo r k l o a d
 Sal a r y Ac c o u n t ca n b e o p e n e d wi t h m in i m um 1 0 e m pl o y e e s
 In s t a nt cr e d it of s al a ri e s

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.

41
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...

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

42
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:

A few Corporates stipulate to their new employees to provide

Security Deposit to reduce attrition. ICICI Bank’s 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 Bank’s Tax-Saver Fixed Deposit enables you to save tax and earn high returns. A dual
benefit option structured to maximise your advantage. ICICI Bank’s 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
traveller’s 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. Non-interest 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:
43
Privilege banking service ensures preferential treatment to its customers.

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.

Flexibility to maintain balances across account.
Lower minimum balance requirement at individual customer level.

44
  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 Bank’s 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.

 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

Gaurav Narang 43
B.B.A
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.
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. Tie-ups with all
leading automobile manufacturers to ensure the best deals. Flexible
schemes & quick processing. Hassle-free application process on
the click of a mouse.

Gaurav Narang 44
B.B.A
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*.
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.

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 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:

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

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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)

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.

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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 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.

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 Investment in ICICI Bank Bonds are eligible for tax rebate under Sec 88 to the full extent
possible.
Bonds are listed on BSE, NSE.

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 Bank’s various research reports on mutual
funds and their schemes before choosing a scheme for investment. ICICI Bank offers investment
in Mutual Funds through Multiple Channels. With ICICI Bank, investor can invest in Mutual
Funds through following channels.

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 ICICI Bank Branches
 ICICI Bank ATM’S
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
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

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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

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.

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 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.

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.

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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.

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

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 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 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

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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 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 money”category.

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 on methods of

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 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 long-standing support to
this unique training centre for people who are deaf-blind.

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




 Chapter 3




RESEARCH METHODOLOGY

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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 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
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way be judged by the reader whether the methodology of work done is sound or not.

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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 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.

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2) To analyse the financial statements of the corporation to assess it’s
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.

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.

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 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 that’s 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:-

“TOMAKE A FINANCIAL ANALYSIS OF FINANCIAL

STATEMENTS OF ICICI BANK”

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:-

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  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
 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

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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 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 Bank’s
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.

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  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 (2005-2009).
 Ratio itself will not completely show the company’s 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
.

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 Chapter 4

FINANCIAL ANALYSIS

INTRODUCTION OF THE TOPIC

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

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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.

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

rational groups.

o 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.

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  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.

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

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 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.

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

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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.

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. Comparative financial statements

b. Common-size statements
c. Trend analysis
d. Ratio analysis
e. Funds flow analysis
f. Cash flow analysis
g. 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

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Tools for comparison of financial statements
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.

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

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 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 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.”

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TYPES OF RATIOS

1. Proportion or Pure Ratio or Simple ratio.

2. Rate or so many Times.
3. Percentage
4. Fraction.

OBJECTS AND ADVANTAGES OR USES OF RATIO

ANALYSIS

1. Helpful in analysis of financial statements.

2. Simplification of accounting data.
3. Helpful in comparative study.
4. Helpful in locating the weak spots of the business.
5. Helpful in forecasting
6. Estimate about the trend of the business
7. Fixation of ideal standards
8. Effective control
9. Study of financial soundness.

LIMITATION OF RATIO ANALYSIS

1. False accounting data gives false ratios
2. Comparisons not possible of different firms adopt different
3. accounting policies.
4. Ratio analysis becomes less effective due to price level
5. change
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 firm’s ability to meet its current obligations.

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Long –Term Solvency and Leverage Ratios : Long-term solvency ratios convey a
firm’s 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

Liquidity Ratios Long-term Activity Ratios Profitability

Solvency and Ratios
Leverage Ratios
-Current Ratio Financial Operating Inventory Turnover In Relation to Sales.
-Liquid Ratio Composite Ratio. Gross Profit Ratio.
(Acid) Test or -Debt. Equity Debtors Turnover Operating Ratio.
Quick Ratio. Ratio Ratio Operating Profit
-Absolute liquid or -Debt to Total Fixed Assets Ratio.
-Cash Ratio. Capital Ratio Turnover Ratio Net Profit Ratio.
-Debtors -Interest Total Asset Turnover Expenses Ratio
Turnover Ratio Coverage Ratio Ratio In relation to
-Creditors Turnover -Capital Gearing Working Capital investments
Ratio Ratio Turnover Ratio. Return on
-Inventory Turnover Payables Turnover Investments.
ratio Ratio Return on capital.
Capital Employed Return on Equity
Turnover Ratio Capital.
Return on total
Resources
Earning per share.
Price Earning Ratio.

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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. Useful for Short-Term Financial Planning.

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

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BALANCE SHEET OF ICICI BANK LTD.
As On Mar 2005,Mar 2006,Mar 2007,Mar2008,Mar2009. (Rs. In crores)
2005 2006 2007 2008 2009
CAPITAL
AND
LIABILITIES:
Total Share 1086.75 1239.83 1249.34 1462.68 1463.29
Capital
Equity Share 736.75 889.83 899.34 1112.68 1113.29
Capital
Share 0.02 0.00 0.00 0.00 0.00
Application
Money
Preference Share 350.00 350.00 350.00 350.00 350.00
Capital
Reserves 11813.20 21316.16 23413.92 45357.53 48419.73
Revaluation 0.00 0.00 0.00 0.00 0.00
Reserves
Net Worth 12899.97 22555.99 24663.26 46820.21 49883.02
Deposits 99818.78 165083.17 230510.19 244431.05 218347.82
Borrowings 33544.50 38521.91 51256.03 65648.43 67323.69
Total Debt 146263.25 226161.17 306429.48 356899.69 335554.53
Other Liabilities 21396.17 25227.88 38228.64 42895.39 43746.43
And Provisions
Total Liabilities 167659.42 251388.95 344658.12 399795.08 379300.96

ASSETS:
Cash And 6344.90 8934.37 18706.88 29377.53 17536.33
Balances With
RBI
Balances With 6585.07 8105.85 18414.45 8663.60 12430.23
Banks,Money At
Call
Advances 91405.15 146163.11 195865.60 225616.08 218310.85
Investments 50487.35 71547.39 91257.84 111454.34 103058.31
Gross Block 5525.65 5968.57 6298.56 7036.00 7443.71
Accumulated 1487.61 1987.85 2375.14 2927.11 3642.09
Depreciation
Net Fixed Assets 4038.04 3980.72 3923.42 4108.89 3801.62
Capital Work In 96.30 147.94 189.66 0.00 0.00
Progress
Other Assets 8702.59 12509.57 16300.26 20574.63 24163.62
Total Assets 167659.40 251388.95 344658.11 399795.07 379300.96

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Contingent 97507.79 119895.78 177054.18 371737.36 803991.92
liabilities
Bills for 9803.67 15025.21 22717.23 29377.55 36678.71
collection
Book 170.35 249.55 270.37 417.64 445.17
value(Rs.)
EPS 27.22 28.55 34.59 37.37 33.78
No. of 736716094 889823901 899266672 1112687495 1113250642
equity shares

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PROFIT AND LOSS ACCOUNT OF ICICI BANK LTD.
For The Year Ended Mar2005,Mar2006,Mar2007,Mar2008,Mar2009 (Rs. In Crores)
2005 2006 2007 2008 2009
INCOME:
Interest Earned 9409.90 13784.49 22994.29 30788.34 31092.55
Other Income 3416.14 4983.14 5929.17 8810.77 7603.72
Total Income 12826.04 18767.63 28923.46 39599.11 38696.27
EXPENDITURE:
Interest Expended 6570.89 9597.45 16358.50 23484.24 22725.93
Operating 3299.15 4479.51 6690.56 8154.18 7045.11
Expenses
Total Expenses 9870.04 14076.96 23049.06 31638.42 29771.04
Operating Profit 2956 4690.67 5874.40 7960.69 8925.23
Other Provision 428.80 1594.07 2226.36 2904.59 3808.26
And Contigencies
Provision For Tax 522 556.53 537.82 898.37 1358.84
Net Profit 2005.20 2540.07 3110.22 4157.73 3758.13
Extraordinary 0.00 0.00 0.00 0.00 (0.58)
Items
Profit B/F 53.09 188.22 293.44 998.27 2436.32

Total 2058.29 2728.29 3403.66 5156.00 6193.87

Preference 0.00 0.00 0.00 0.00 0.00
Dividend
Equity Dividend 632.96 759.33 901.17 1227.70 1224.58
Corporate 90.10 106.50 153.10 149.67 151.21
Dividend Tax
Pershare Data
Eps(Rs.) 27.22 28.55 34.59 37.37 33.78
Equity 85.00 85.00 100.00 110.00 110.00
Dividend(%)
Book Value(Rs) 170.35 249.55 270.37 417.64 445.17
Appropriations
Transfer To 547.00 248.69 1351.12 1342.31 2008.42
Statutory Reserve
Transfer To Other 600.01 1320.34 0.00 0.01 0.01
Reserve
Proposed 723.06 865.83 1054.27 1377.37 1375.79
Dividend/Transfer
To Govt
Balance C/F To 188.22 293.44 998.27 2436.32 2809.65
Balance Sheet
Total 2058.29 2728.30 3403.66 5156.01 6193.87

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 FINANCIAL STATEMENT ANALYSIS

Comparative Balance Sheet Of ICICI Bank From 2005-2006 To

2008-2009
(Rs. in crores)
PARTICULARS 2005-2006 2006-2007 2007-2008 2008-2009
Absolute % of Absolute % of Absolute % of Absolute % of
change change change change change change change chang
e
CAPITAL
AND
LIABILITIES:
Capital 153.08 14 9.51 0.8 213.34 17 0.61 .04
Reserves and 9502.96 80 2097.76 10 21943.61 94 3062.2 7
surplus
Deposits 65264.39 65 65427.02 40 13920.86 6 (26083.23) (11)
Borrowings 4977.41 15 12734.12 33 14392.4 28 1675.26 2.5
Other Liabilities 3831.71 18 13000.76 51.5 4666.75 12 851.04 2
and Provisions

TOTAL CAPITAL 83729.55 50 93269.17 37 55136.96 16 (20494.12) (5.1)

AND LIABILITIES

ASSETS:
Investments 21060.04 42 19710.45 27.5 20196.5 22 (8396.03) (7.5)
Advances 54757.96 60 49702.49 34 29750.48 15 (7305.23 (3.25)
Fixed assets (57.32) (1.4) (57.3) (1.4) 185.47 5 (307.27) (7.5)
Capital Work In 51.64 54 41.72 28.2 (189.66) -100 0.00 0.00
Progress
Current assets 7917.23 37 23871.8 81 5194.17 10 (4485.58) (8)
TOTAL 83729.55 50 93269.16 37 55136.96 16 (20494.11) (5.1)
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 the capital. In
2005-06 and 2007-08 the rate of increase in capital is more
than that of 2006-07 and 2008-09.

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  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.

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 1. Comparative Income Statement Of ICICI Bank From
2005-2006 To 2008-2009
(Rs. in crores)
PARTICULARS 2005-2006 2006-2007 2007-2008 2008-2009
Absolute % of Absolute % of Absolute % of Absolute % of
change change change change change change change cha n-
ge
INCOME:

Operating income 5941 46.3 10156 54.1 10676 37 (902.84) (2.3)

EXPENDITURE:

Interest expended 3026.56 46 6761.05 70.4 7125.74 43.5 (758.31) (3)

Operating 1180.36 36 2211.05 49.3 1463.62 22 (1109.07 (14)
expenses
Total expenses 4206.92 43 8972.1 64 8589.36 37.2 (1867.38) (5.9)
Operating profit 1734.67 59 1183.73 25.2 2086.29 35.5 964.54 12.1

Provision and 1199.8 126.1 613.58 28.5 1038.78 37.5 1364.14 36

contigencies
Net profit for the
year 534.87 27 570.15 22.4 1047.51 34 (399.6) (10)
Extraordinary
items 0.00 0.00 0.00 0.00 0.00 0.00 (0.58) 0.00
Profit brought
forward 135.13 254.5 105.22 56 704.83 21 1438.05 144

TOTAL PROFIT/ 670 32.55 675.37 25 1752.34 51.4 1037.87 20

(LOSS):

Interpretation:-

 The net profit shows a fluctuating trend i.e it increased by 27% in 2005-06,22.4%
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.

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 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 100 165 231 245 219
Advances 100 160 214 247 239
Net profit 100 127 155 207 187

Trend graph of ICICI Bank

300

250

200
percentage(%)

DEPOSITS
150 ADVANCES
NET PROFIT
100

50

0
2005 2006 2007 2008 2009
Years

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.

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 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.

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

Current Ratio of ICICI Bank for the period of

2005-2009

1.6
1.39 1.36
1.4
1.23
1.17
1.2
1.01
1
Ratio

0.8 Current Ratio

0.6
0.4
0.2
0
2005 2006 2007 2008 2009
Years

Year Current Assets Current Liabilities Current Ratio

(Rs. In crores) (Rs. In crores)
2005 21632.56 21396.16 1.01
2006 29549.79 25227.88 1.17
2007 53421.59 38228.64 1.39
2008 58615.76 42895.38 1.36
2009 54130.18 43746.43 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

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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.

Quick Ratio = Total Quick Assets

Total Current Liabilities

Quick Assets = Total Current Assets – Inventory

Liquid Ratio of ICICI Bank for the period of 2005-2009

1.2

1 0.97
0.88

0.8
0.67 0.68
Ratio

0.6
0.6 Liquid Ratio

0.4

0.2

0
2005 2006 2007 2008 2009
Years

2005 12929.97 21396.16 0.60

2006 17040.22 25227.88 0.67
2007 37121.33 38228.64 0.97
2008 38041.13 42895.38 0.88
2009 29966.56 43746.43 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.

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EARNING PER SHARE:
In order to avoid confusion on account of the varied meanings of the term capital
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 company’s capacity to pay dividend to its
equity shareholders.

Earnings Per Share Ratio of ICICI Bank for the

period of 2005-2009

40 37.37
34.59 33.78
35
30 27.22 28.55

25
Ratio

20 Earnings Per Share

15
10
5
0
2005 2006 2007 2008 2009
Years

Year Net Income Available No. Of Equity EPS

For Shareholders Shares
(Rs. In crores) (Rs. In crores)
2005 2005.2 73.6716 27.22
2006 2540.07 88.9823 28.55
2007 3110.22 89.9266 34.59
2008 4157.73 111.2687 37.37
2009 3758.13 111.325 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.

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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.
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

Dividend Per Share Ratio of ICICI Bank for the

period of 2005-2009

12 11.03 11
10.02
10
8.59 8.53
8
Dividend Per Share
Ratio

6 Ratio

0
2005 2006 2007 2008 2009
Years

Year Dividend Paid No. Of Equity DPS

Shares
(Rs. In crores) (Rs. In crores)
2005 632.96 73.6716 8.59
2006 759.33 88.9823 8.53
2007 901.17 89.9266 10.02
2008 1227.7 111.2687 11.03
2009 1224.58 111.325 11

Interpretation:

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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.

Net Profit Ratio of ICICI Bank for the period of 2005-2009

25
21.3
20 18.42

15 13.52 13.5
Ratio(%)

12.08
Net Profit Ratio
10

0
2005 2006 2007 2008 2009
Years

Year Net Profit Sales Net Profit Ratio

(Rs. In crores) (Rs. In crores) (in %)
2005 2005.2 9409.9 21.3
2006 2540.07 13784.49 18.42
2007 3110.22 22994.29 13.52
2008 4157.73 30788.34 13.5
2009 3758.13 31092.55 12.08

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 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.

Operating Profit Ratio of ICICI Bank for the period

of 2005-2009

40

35 34.02
31.41
30 28.7
25.54 25.85
25
Ratio

20 Operating Profit Ratio

15

10

0
2005 2006 2007 2008 2009
Years

Year Operating Profit Sales Operating Profit

(Rs. In crores) (Rs. In crores) Ratio (in %)
2005 2956 9409.9 31.41
2006 4690.67 13784.49 34.02
2007 5874.4 22994.29 25.54
2008 7960.69 30788.34 25.85
2009 8925.23 31092.55 28.7

Interpretation:

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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 proprietor’s 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
Shareholder’s Funds

Return On Net Worth Ratio of ICICI Bank for the

period of 2005-2009

18
15.54
16
14 12.61
12 11.26
8.88
Ratio

10
7.53 Return On Net Worth
8
6
4
2
0
2005 2006 2007 2008 2009
Years

Year Net Profit After Shareholder's Fund Return On Net

Interest And Tax Worth (in %)
(Rs. In crores) (Rs. In crores)
2005 2005.2 12899.97 15.54
2006 2540.07 22555.99 11.26
2007 3110.22 24663.26 12.61
2008 4157.73 46820.21 8.88
2009 3758.13 49883.02 7.53

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 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:

Return On Capital Employed of ICICI Bank for the

period of 2005-2009

9
8.29
7.99
8

7 6.52
6.22
6 5.61

5
Ratio

Return On Capital Employed

4

0
2005 2006 2007 2008 2009
Years

Year Net Profit Before Capital Employed Return On Capital

Interest And Tax Employed (in %)
(Rs. In crores) (Rs. In crores)
2005 9098.09 146263.25 6.22
2006 12694.05 226161.17 5.61
2007 20006.54 306429.48 6.52
2008 28540.34 356899.69 7.99
2009 27842.9 335554.53 8.29

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 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 shareholder’s 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.

Debt Equity ratio of ICICI Bank for the period of

2005-2009

14 12.97
11.99
12
10.14
10

8 7.53
Ratio

6.6
Debt Equity Ratio
6

0
2005 2006 2007 2008 2009
Years

Year Debt Equity Debt Equity Ratio

(Rs. In crores) (Rs. In crores)
2005 154759.45 12899.97 11.99
2006 228832.96 22555.99 10.14
2007 319994.86 24663.26 12.97
2008 352974.87 46820.21 7.53
2009 329417.94 49883.02 6.6

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 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 shareholder’s funds to total assets.It is calculated by dividing shareholder’s
funds by total assets.

Proprietory Ratio = Shareholder’s Fund

Total Assets

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.

Proprietory Ratio of ICICI Bank for the period of

2005-2009

0.14 0.13
0.12
0.12
0.1
0.08
Ratio

0.08 0.07 0.07

Proprietory Ratio
0.06
0.04
0.02
0
2005 2006 2007 2008 2009
Years

Years Shareholder's Funds Total Assets Proprietory Ratio

(Rs. In crores) (Rs. In crores)
2005 12899.97 167659.4 0.07
2006 22555.99 251388.95 0.08
2007 24663.26 344658.11 0.07
2008 46820.21 399795.07 0.12
2009 49883.02 379300.96 0.13

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 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:

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 .

Fixed assets Turnover Ratio of ICICI Bank for the

period of 2005-2009

9 8.17
8 7.49
7
5.86
6
Ratio

5 Fixed assets Turnover

4 3.46 Ratio
3 2.33
2
1
0
2005 2006 2007 2008 2009
Years

Year Sales Net Fixed Assets Fixed Assets

(Rs. In crores) (Rs. In crores) Turnover Ratio
2005 9409.9 4038.04 2.33
2006 13784.49 3980.72 3.46
2007 22994.29 3923.42 5.86
2008 30788.34 4108.89 7.49

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2009 31092.55 3801.62 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 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.

Credits
Credit Deposit Ratio  100
Deposits

Credit means disbursement of advances

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

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 Credit Deposit ratio of ICICI bank for the period of
2005-2009

1.05
0.99
1

0.95 0.92
0.91
Ratio

0.9 0.88 Credit Deposit ratio

0.84
0.85

0.8

0.75
2005 2006 2007 2008 2009
Years

Year Advances Deposits Credit Deposit Ratio (in%)

(Rs. In crores) (Rs. In crores)
2005 91405.15 99818.78 91
2006 146163.11 165083.17 88
2007 195865.6 230510.19 84
2008 225616.08 244431.05 92
2009 218310.85 218347.82 99

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.

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 4. CASH FLOW STATEMENT OF ICICI BANK

2005 2006 2007 2008 2009

Profit before tax 2,527.20 3,096.61 3,648.04 5,056.10 5,116.97
Net cashflow-operating
9,131.72 4,652.93 23,061.95 -11,631.15 -14,188.149
activity
Net cash used in
-3,445.24 -7,893.98 -18,362.67 -17,561.11 3,857.88
investing activity
Netcash used in fin.
-1,227.13 7,350.90 15,414.58 29,964.82 1,625.36
activity
Net inc/dec in cash and
4,459.34 4,110.25 20,081.10 683.55 -8,074.57
equivlnt
Cash and equivalnt begin
8,470.63 12,929.97 17,040.22 37,357.58 38,041.13
of year
Cash and equivalnt end
12,929.97 17,040.22 37,121.32 38,041.13 29,966.56
of year

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 Chapter 5

FINDINGS,SUGGESTIONS
& CONCLUSION

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

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 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 Bank’s 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 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 Bank’s 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

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 The Bank’s capital adequacy at March 31, 2009 as per Reserve Bank of India’s
revised guidelines on Basel II norms was 15.5% and Tier-1 capital adequacy was
11.8%, well above RBI’s 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.

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 Bank’s 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

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same pace as of expenses. But the bank has succeeded in maintaining a reasonable
profitability position.

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 owner’s equity.
Bank’s 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

 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.

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  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 it’s 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 FD’s etc.

 Bank should try to finance more and more projects. Financing will help it to
earnhigher 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 it’s 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.

 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

atmosphereshould be developed to achieve desired objective more effectively.

 Last but not least, bank should adopt branch automation experiment to control
theoperational cost.

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Gaurav Narang 100
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 CHAPTER 6

BIBLIOGRAPHY

BIBLIOGRAPHY

Books Reffered:

Accountancy. R.K. Mittal,A.K.Jain.

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 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

 Www.Moneycontrol.Com

 WWW.Money.Rediff.Com

 Www.Wikipedia.Org

 Www.Google.Com

 Www.Scribd.Com

 Www.Managementparadise.Com

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