Financial Performance of Icici Bank LTD

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Christ College- Pondicherry University
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LIST OF CHARTS & FIGUR

Chart 1 Chart 2 Chart 3 Chart 4 Chart 5 Chart 6 Chart 7 Sources of Finance Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Figure 14 Status of Advances & CL & Provision Credit & Provision Ratio Status of Deposits & Credits Credit Ratio Status of Deposits & Equity Deposit to Capital Ratio Average Cost of Funds Employed Percentage Status of Interest paid & Deposits Received Credit Deposit Ratio Status of Loans, Advances & Deposits Credit Capacity Ratio Advances & Equity Capital Status of Advances & Shareholders Fund Credit Net worth Ratio Structure of Banking System in India Diversification of ICICI Bank The different Logos of ICICI Bank Shareholding Pattern Mickinsey 7S Model Organization Structure
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Figure 15 Figure 16 Figure 17 Figure 18 Figure 19 Figure 20 Figure 21 Figure 22 Figure 23 Figure 24 Figure 25 Figure 26 Figure 27
Investment to Deposit Ratio Status of Investment & Deposits Deposits & Shareholders Fund Deposits to Net worth Ratio Status of cash Balance & Deposits Cash Balance to total Deposit Ratio Status of Current Assets & Liabilities Current Ratio Status of Profit & Shareholders Fund Return on Investment Ratio Status of Operating exp & Income Operating Ratio Status of Operating Income & Shareholders Fund Operating Ratio Status of Income & Assets Income to Asset Ratio Status of Net Profit & Total Income Net Profit Ratio Status of Net Profit & Net Assets Net Profit to Net Asset Ratio
Figure 28 Figure 29 Figure 30 Figure 31 Figure 32 Figure 33 Figure 34
[Type text] LIST OF TABLES
Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19
Credit Rating of ICICI Bank Shareholding Pattern Average Cost of Funds Employed Credit Deposit Ratio Credit Capital Ratio Credit Net worth Ratio Credit to Current liabilities & Provisions Deposit Credit Ratio Deposit Capital Ratio Investment to Deposit Ratio Deposits to Net worth Ratio Cash Balance to Total Deposit Ratio Current Ratio Return on Investment Ratio Operating Overheads to Total Income Ratio Operating Results Ratio Income to Asset Ratio Net Profit Ratio Net Profit to Net Asset Ratio
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EXECUTIVE SUMMARY
A study on Financial Performance of ICICI Bank limited is undertaken in order to know the financial performance and position of the bank and to know the strength & weakness of the bank & to assess the profitability of the bank. Ratio analysis is the tools used as a yardstick for evaluating the financial condition and performance of the business firm.
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INTRODUCTION Finance:
Finance is one of the major elements, which activates the overall growth of economy; Finance is the lifeblood of economic activity. A well-knit financial system directly contributes to the growth of the economy. An efficient financial system calls for the effective performance of financial institutions, financial instruments and financial markets.
Importance of finance
Finance is regarded as the lifeblood of a business enterprise; this is because in the modern money-oriented economy finance is one of the basic foundations of all kinds of economy activities. It is the master key, which provides access to all the sources for being employed in manufacturing and merchandising activities. It has rightly been said that business needs money to make more money. However, it is also true that money begets more money. Only when it is properly managed. Hence, efficient management of every business enterprise is closely linked with efficient management of its finances.
Scope of finance
The firm secures capital it needs and employs finance activities, which generate return on invested capital. The business firm mainly engages in activities to perform the functions of finance, thus it requires a number of real assets (plant, machines, furniture) and financial asset (shares and bonds) to receive return on its Christ College- Pondicherry University 6
[Type text] investments and distributes returns. These processes of raising funds are known respectively as financing, Investment and dividend decisions.
Retained earnings are another undistributed returns on equity capital; they are, therefore, rightfully a part of equity capital. The retention of earnings can be considered as a form of raising new capital. If a company distributes all earnings to shareholders, then, it can reacquire new capital from the same sources by issuing new shares.
The finance function of raising and using money although has a significant effect on other function, yet it needs not necessarily limit or constraint the general running of the business. A company in a tight financial position will, of course, give more weight to financial considerations.
Finance functions: There are four important finance functions:
1. Investment decision Investment decision or capital budgeting is the oldest area of the recent thinking in finance. Its one very significant aspect is the risk of measuring the prospective profitability of new investments. Future benefits are difficult to measure and cannot be predicted with certainly, Because of the uncertain future. Capital
[Type text] budgeting decision involves risk. Investment proposals should therefore, be evaluated in terms of both expected return and risk.
2. Financing decision Financing decision is the 2nd important function to be performed by the financial manager. Broadly, he must decide when, where and how to acquire funds to meet the firms investment needs. The central issue before him is to determine the proportion of equity and debt. The mix of debt and equity is known as the firms capital structure.
3. Dividend decision The dividend policy should be determined in terms of its impact on the shareholders value. The optimum dividend policy is one, which maximizes the market value of the firms shares. Thus, if shareholders are not indifferent to the firms dividend policy, the financial manager must determine the optimum dividend payout ratio.
4. Liquidity decision Investment in current asset affects firms profitability, liquidity and risk. A conflict exists between profitability and liquidity while managing the current assets. It may become illiquid. But it could lose profitability, as idle current assets would not earn any thing. Thus a proper trade off must be achieved between profitability and liquidity.
[Type text] Financial services: Many financial institutions giving services to the public these are: 1. Bank 2. Co-operative societies 3. Financial institutions 4. Private Banks 5. Foreign Banks 6. Nationalized Bank 7. Non-Banking financial institutions.
Meaning of Financial Statements:
The term financial statement refers to the statements, which are prepared the business concern or banks at the end of the each financial year, i.e. which start from 1st April of current year to 31st March of next year. The statements are (a) INCOME STATEMENTS or PROFIT & LOSS ACCOUNTS which is prepared in order to know whether the concern has earned profits or sustained loss during the specific financial period. (b) POSITION STATEMENT or BALANCE SHEET with the respective schedules forming a part of Balance sheet, which is prepared by the concern in order to know their financial position. The Financial Auditors and accountants, Board Of Directors (BOD), usually prepare these.
[Type text] To these statements are added the statements of retained earnings and statements such as Funds Flow Statements (FFS); Cash Flow Statements (CFS); Ratio analysis, in order to know the positions regarding Profitability, Liquidity and solvency.
Nature of Financial Statements:
Financial statements are prepared for the purpose of presenting a periodical review or report by the management and deal with state of investment in business and result achieved during the period under view. They reflect a combination of recorded facts, accounting conventions and personal judgments. From this it is clear that three things affect financial statements i.e. 1. Recorded facts. 2. Accounting conventions. 3. Personal judgments.
Only those facts, which are recorded in the business books, will be reflected in the financial statements. The following points reflect truly the nature of financial statements of business entities: (i) These are reports or summarized reviews about the performance, achievements and weaknesses of the concern. (ii) These are prepared at the end of the accounting period so that various parties may take decisions of their future actions in respect of the relationship with the concerns. (iii) The reliability of financial statements depends on the reliability of the accounting data. These statements cannot be said to be true and fair representatives of the strengths
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[Type text] or profitability of the concern if there are numerous frauds and defalcations in the accounts. (iv) The figures in the financial statements are a combination of recorded facts. There may be certain developments and factors which may be very important for the business are not taken into account as these are not recorded in the routine of accounting. Moreover, fixed assets are recorded at historical value without taking into consideration the change in their values due to price level fluctuations. (v) These statements are prepared as per accounting concepts and conventions. (vi) These statements are influenced by the personal judgment of the accountant though he is expected to be more objective in his approach. These judgments may relate to valuation of inventory, depreciation of fixed assets and while making distinction between capital and revenue.
Meaning of Analysis of Financial Statements:
Analysis is the process of critically examining in detail accounting information given in the financial statements. For the purpose of analysis, individual items are studied; their interrelationship with other related figures established, the data is sometimes rearranged to have better understanding of the information with help of different techniques or tools for the purpose. Analyzing financial statements is a process of evaluating relationship between component parts of financial statements to obtain a
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[Type text] better understanding of firms position and performance. In the words of Myer, Financial statements analysis is largely a study of relationship among the various financial factors in a business as disclosed in a series of statements. The analysis of financial statements thus refer tot the treatment of the information contained in the financial statements in a way so as to afford a full diagnosis of the profitability and financial position of the firm concerned. For this purpose financial statements are classified methodically, analyzed and compared with the figures of previous years or other similar firms.
Objectives of Financial Analysis:

Financial Analysis is helpful in assessing the financial position and profitability of a concern. This is done through comparison by ratios for the same concern over a period of years; or for one concern against another; or for one concern against the industry as a whole (Inter-firm comparison); or for one concern against the predetermined standards; or for one department of a concern against other departments of the same concern (Intra-firm comparison). Accounting ratios calculated for a number of years show the trend of the change of position, i.e., whether the trend I upward or downward or static. The ascertainment of trend helps us in making estimates for the future. Keeping in view the importance of accounting ratios the accountant should calculate the ratios in appropriate form, as early as possible, for presentation to the management for managerial control. The main objectives of analysis of financial statements are to assess: (i) The present and future earning capacity or profitability of the concern,
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[Type text] (ii) The operational efficiency of the concern as a whole and of its various parts or departments, (iii) The short term and long term solvency of the term for the benefit of the debenture holders and trade creditors, (iv) The comparative study in regard to one firm with another firm or one department with another department, (v) The possibility of developments in the future by making forecast and preparing budgets, (vi) The financial stability of a business concern, (vii) The real meaning and significance of financial data, and (viii)The long-term liquidity of its funds.
Types of Financial Statements analysis:

Different types of financial statements analysis can be made on the basis of: (i) The nature of the analyst and the material used by him, (ii) The objective of the analysis, and (iii) The modus operandi of the analysis.
PROJECT TITLE:
FINANCIAL PERFORMANCE OF ICICI BANK LIMITED.
This research has been conducted to know and understand the business operations of ICICI Bank. An attempt is made to study the financial performance and the factors influencing the financial aspects. The researcher also extended his scope to
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[Type text] analyze the liquidity position, strength and weaknesses of the bank in handling the financial operations. For a systematic study, tables and graphs were drawn wherever required.
Basically the scope of the study was limited to Bangalore Regional office of ICICI Bank. But consolidated financial reports of all the divisions in India were considered for analysis. Inter branch comparison was not possible. Limitations of past records, time constraints etc. have their impact on the study.
FINDINGS: The heavy competitions lead to increase in the operating expenses. The banks earning capacity is moving upward as the bank implemented an aggressive financial policy by keeping its short-term liquidity position under threat. It continuously expands its net assets that help to earn more returns. Current ratio of the bank has to be brought nearer to the standard i.e. 2:1. It is clear from the study that the ICICI Bank focuses more on maximum utilization of its funds so as to contribute much towards profits there by increasing the value for shareholders.
RECOMMENDATION: Bank has to go for branch expansion process in the vast Indian rural market by providing much ATM facilities in Taluk head quarters. Effective service to the
customers is the vital factors for success in the industry, which the bank has to facilitate.
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CONCLUSION: The over all performance of ICICI Bank is satisfactory, company utilizes its available funds effectively. The aggressiveness shown by the bank in its financial operations helped it to maximize its earnings.
2. INTRODUCTION 2. 1) INDUSTRY PROFILE

The organized banking system in India is broadly divided into three categories, i.e. the central bank known as the Reserve bank of India, the commercial banks and the Co-operative banks. The reserve bank of India is the supreme monetary and banking
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[Type text] authority in the country and has the responsibility to control the banking system in country. It is known as the RESERVE BANK as it keeps the reserve of all commercial banks. Banking Regulation Act of India, 1949 defines banking as accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawal by cheques, draft, and order. Most of the activities a bank performs are derived from the above definition. In addition, Banks are allowed to perform certain activities, which are ancillary to this business of accepting deposits and lending. A banks relationship with the public therefore revives around accepting deposits and lending money. Another activity, which is assuming increasing importance, is transfer of money both domestic and foreign from one place to another. This activity is generally known as remittance business in banking parlance. The so-called forex (foreign exchange) business is largely a part of remittance. It involves the buying and selling of foreign currencies. The law governing banking Activities in India is called Negotiable Instruments Act 1881. The banking activities can be classifies as: 1. Accepting Deposits from public /others (deposits) 2. Lending money to public (Loans) 3. Transferring money from one place to another (Remittance) 4. Acting as trustees 5. Acting as intermediaries 6. Keeping valuable in safe custody 7. Collection business 8. Government Business
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[Type text] Commercial banks have been in existence for many decades. After1969 commercial banks are broadly classified into nationalized or public sector and private sector banks. The state bank of India and associate banks along with another 20 banks are the public sector banks. The private sector banks include a number of Indian scheduled banks, which have not been nationalized, and branches of foreign banks operating in India. The Regional Rural banks (RRBs) came into existence since the Middle of 1970s with the specific objective of providing credit and deposit facilities particularly to the small and marginal farmers, agricultural laborers and artisans and the small entrepreneurs. Primary Co-operative credit societies or banks were originally set up in villages to promote thrift and saving of the farmers and to meet their credit needs for cultivation. The central or district co-operative banks above them state co-operative banks were established. The funds of RBI meant for agricultural sector actually pass through the State co-operative banks and central co-operative banks. These have now spread to the urban areas. Under the RBI Act 1934, banks were classified as scheduled banks and nonscheduled banks. The scheduled banks are those, which are entered in the second schedule of RBI Act, 1934.they are banks, which have paid up capital and reserves of an aggregate value of not less than 5 lakhs and which satisfy RBI that their affairs are carried out in the interests of the depositors. All commercial banks Indian and foreign, regional rural banks and state co-operative banks are scheduled banks. Non-scheduled banks are those, which have not been including in the second schedule of RBI Act1934.
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[Type text] The present banking scenario in the country looks extremely promising. For the past few years most of the banks have posted very good results quarter after quarter and are displaying their ability for high growth. Banks such as the union bank of India, vijay bank, Indian Overseas bank and UCO banks have come out with their initial public offering.
Banks are classified into several types based on the functions they perform.
1. Commercial Bank. 2. Investment or industrial Banks. 3. Exchange Banks. 4. Co-operative Banks. 5. Land Development Banks. 6. Savings Banks. 7. Central Banks.
1). COMMERCIAL BANKS Commercial banks perform all the business transaction of a typical bank. Commercial Banks accept three types of deposits, Like Savings Bank Deposit, Fixed Deposit and Current Deposit. They accept these deposit, which are payable on demand or in short notice. As such they lend or invest only for short duration. They funds for short-term needs of trade of commerce. 2). INVESTMENT OR INDUSTRIAL BANK Investment Banks are those banks, which provide funds on long term for industries. These Banks have specialized in providing long term loans to industries with a view to buy plant of machinery. The investment Banks obtain funds through share Christ College- Pondicherry University 18
[Type text] capital, Debentures and long term deposits from the public. They float bonds for the sake of mobilizing funds to provide funds for big industries corporations. These banks also under write or issue new shares of debentures of industrial concerns. 3). EXCHANGE BANKS Exchange Banks are known as foreign Banks or foreign exchange Banks. The foreign exchange banks provide exchange for imports trade. Their main function is to make international payment through purchased sake of exchange bills. 4). CO-OPERATIVE BANKS Co-operative Banks are promoted to meet the banking requirements of consumers. They are established not only in the urban areas but also in the rural areas. In the rural areas these banks supply finances to agriculture, while in the urban areas they provide finance to consumer goods. 5). LAND MORTGAGE BANKS Whenever agriculturist require investment loans, they have to approach land development Banks. Where loans are given on long-term basis. They provide loans on the security of the land. 6). SAVINGS BANKS Savings Banks are specialized financial institutions established to mobilize savings from the people. The primary object of the commercial Banks is to promote thrift among the low and middle-income groups. The Banks also offer interest on these deposits.
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[Type text] 7). CENTRAL BANKS. Central Bank in an apex Bank in the country, which keeps the entire banking system unified, controlled and regulated. In fact, the central bank is the Bank, which formulates the monetary policy. It regulates the notice issue. In India, the Reserve Bank of India is the central Bank of India.
STRUCTURE OF BANKING SYSTEM IN INDIA

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2.2) COMPANY PROFILE 2.2. 1.HISTORY OF ICICI BANK

ICICI Bank was originally promoted by the erstwhile ICICI Limited and SCICI Limited. The Industrial credit and investment corporation of India Limited (ICICI) was
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[Type text] formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian business. ICICI Bank was originally promoted in 1994 by ICICI Limited and was its wholly owned subsidiary. It was incorporated as a company under the companies Act, 1956 in January 1994 and received the certificate of commencement of business in February 1994. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. Bank of Madura Limited was merged with ICICI Bank with effect from 10th March 2001. 1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the 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 also among the first Indian companies to raise funds from International markets. 1956: ICICI declared its first Dividend at 3.5%. 1958: Mr. G.L.Mehta was appointed the 2nd Chairman of ICICI Ltd. 1960: ICICI building at 163, Back Bay Reclamation was inaugurated.
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[Type text] 1961: The first West German loan of DM 5 million from Kredianstalt was obtained by ICICI. 1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed. 1972: Second entity in India to set-up merchant banking services. 1977: ICICI sponsors the formation of Housing Development Finance Corporation. Managed its first equity Public issue 1978: Mr. James Raj appointed as the fourth Chairman of ICICI. 1979: Mr.Siddharth Mehta appointed as the fifth Chairman of ICICI. 1982: Becomes the first ever-Indian borrower to raise European Currency Units 1984: Mr. S. Nadkarni appointed as the sixth Chairman of ICICI. 1985: Mr. N.Vaghul appointed as the seventh Chairman and Managing Director of ICICI. 1986: ICICI first Indian Institution to receive ADB Loans. First public issue by an Indian entity in the Swiss Capital Markets. ICICI along with UTI sets up Credit Rating Information Services of India Limited, (CRISIL) Indias first professional credit rating agency. ICICI promotes Shipping Credit and Investment Company of India Limited. (SCICI)
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[Type text] 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: ICICI promotes TDICI - Indias first venture capital company. 1993: ICICI sets-up ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan. 1994: ICICI sets up ICICI Bank. 1996: ICICI becomes the first company in the Indian financial sector to raise GDR. Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd. 1997: ICICI was the first intermediary to move away from single prime rate to threetier prime rates structure and introduced yield-curve based pricing. The name The Industrial Credit and Investment Corporation of India Limited was changed to ICICI Limited. 1998: Introduced the new logo symbolizing a common corporate identity for the ICICI Group. 1999: ICICI launches retail finance - car loans, house loans and loans for consumer durables. 2000: ICICI Bank becomes the first commercial bank from India to list its stock on NYSE. ICICI Bank announces merger with Bank of Madura. Christ College- Pondicherry University 23
[Type text] 2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank. 2002: Moodys assign higher than sovereign rating to ICICI: ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares. 2003 -Launches micro-finance programmes -ICICI One source deploys new recruitment system -Sets up NRI advisory service -Singapore govt. offloads 2-cr shares of ICICI Bank -Bank chief K V Kamath appointed head of finance panel for river linking project -Launches 'Give2India' to facilitate donations by NRIs -Comes out with a bond issue of Rs. 400 crore -Installs Telugu language ATMs in Hyderabad -Launches 'ICICI Bank Pure Gold'-certified and tamper proof 24-carat pure gold coins in Chennai -Collects over Rs. 1,200-cr via first bond issue
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[Type text] -Obtains 'excellence in retail banking' award instituted by the Singapore-based Asian Bankers Journal -ICICI Bank-led combine gets approval for Nationwide Multi Commodity Exchange (NMCE) set up -Bio Serve takes up about 3,000 sq.ft. space at the ICICI Knowledge Park to set up a contract research lab -Sets up integrated currency management center in Pune. -Rama Newsprint & Papers Ltd allots 5632129 no. Of Equity shares to ICICI Bank Ltd on conversion right exercised by them -HDFC, ICICI buy 33-pc stake in Hindustan Coca-Cola Beverages, the Indian bottling subsidiary of the Atlanta-based carbonated soft drinks giant Coca-Cola -Reliance Info forges alliance with ICICI for bill receivables -Ties up with Employees Provident Fund Organization to distribute pension across the country -Ties up with TeNet for micro-banking -Starts 12-hours banking services -ICICI Bank restructures organizational structure -Acquires the Credit Card Division of Tata Finance -Air India ropes in ICICI Bank as authorized dealers for hedging
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[Type text] -ICICI Bank along with others set up Rs. 800-cr "India Advantage Fund" -Records Rs. 8000-cr securitisation during '02-03 -Enters deal with Pramati Technologies to deploy Pramati Server Software -Tops NPA recovery list among domestic lenders -Unveils Pure Gold coins in Karnataka -Decides to scrap '97 series deep discount bonds -Obtains approval to set up Overseas Banking Units (OBU) -Communication ministry engages ICICI Bank, IIT to study viability of telecom firms -Unveils NRI remittance product in Canada -ICICI Bank, Amway launch co-branded international credit card -Picks up 25% shares in NCDEX (National Commodities & Derivatives Exchange) -ICICI directs introduces tax-free Savings Bond '03 online -Videsh Sanchar Nigam Limited (VSNL) and ICICI Bank have announced a tie-up for the distribution of Tata Indicom`s dial-up Internet services -ICICI Bank offers rail ticket booking facility to its customers -Buys Apple Credit's 30-pc stake in Transamerica Apple Distribution Finance Ltd. (TADFL) -Takes over 100-pc of TADFL Christ College- Pondicherry University 26
[Type text] -Outgoing ICICI Bank Joint Managing Director Mr. H N Sinor becomes new chief executive and secretary of Indian Banks Association (IBA) -ICICI Bank, HDFC Bank tie up with Indian Railway Catering and Tourism Corporation (IRCTC) for online rail bookings -ICICI Bank, DaimlerChrysler team up for new finance scheme -Gets Insurance Regulatory Development Authority (IRDA) nod for India Advantage Fund -Announces VRS, the first for the new generation private sector banks -Bags DM Review World Class Solution Award 2003 -Enters into an institutional agreement with Dubai Bank wherein ICICI Bank would be the principal correspondent bank of Dubai Bank in India -Discontinues the contract with Hollywood Superstar Amitabh Bachchan since it finds him too expensive -Embarks on market making securities instruments -Global Finance Magazine awards ICICI Bank as the "Best consumer internet Bank in India" -ICICI Bank empanelled for JNPT's Electronic Data Interchange (EDI) project -Signs option contract with BHEL -ICICI Bank's 1350 employees opt for VRS
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[Type text] -Textile sector leads ICICI Bank's NPA -Approves 7.3 million options to its employees -Birla Tyres ties up with ICICI bank to offer Rs. 2 lakh life insurance benefit to the truck drivers on the purchase of every pair of tyres -Inaugurates its first Offshore Banking Unit (OBU) at SEEPZ Special Economic Zone, Mumbai -ICICI implements NCR solution (Cheque Mark PDC Module) for post dated cheques -ICICI Bank picks up Timesofmoney.com's e-filing service -ICICI Bank acquires 17.75% stake in NDTV -Launches 'Instra Transfer', an NRI remittance product, which will enable NRIs in the Gulf to transfer funds to India within two hours -Acquires 36,000,000 shares amounting to 12.65% of Himachal Futuristic Communications Ltd (HFCL) -Divests 0.31% shares in Federal Bank -Converts part of HFCL loan into equity shares giving 12.65% stake in the company -Inaugurates Singapore branch -Decides to take the service of Hollywood Superstar Amitabh Bachchan (Big B) on purely case-to-case basis
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[Type text] -ICICI Bank in alliance with Federation of Automobile Dealers Association (FADA) unveils credit card for vendors to dealers and opens a business-to-business (B2B) section in FADA's Web site -West Coast signs agreement to acquire ICICI's 34 percent stake in Rama Newsprint & Papers Ltd. (RNPL) -Investmentz.com forges alliance with ICICI Bank for offering payment gateway to its customers for real-time transfer of funds -Banker Magazine of UK confers its 'Best Multi-Channel Strategy 2003' and Bank of the Year 2003' awards to ICICI Bank -Instanex Skindia depository receipts index increases the index percentage of market capitalization used for ICICI Bank to 95 per cent from 75 per cent -ICICI Bank in association with the Federation of Automobile Dealers Association (FADA) unveils a credit card for vendors to dealers and opens a business-to-business (B2B) section in FADA's Web site -Issues notice to Ponni Sugars (Orissa) Ltd. to take possession of the Balangir Sugar Mill - Allotment 287774 equity shares of face value of Rs.10/- each on October 13, 2003 under the Employee Stock Option Scheme. -ICICI bank gets Banker magazine awards for the year -Crisil assigns highest ratings to instruments issued under ICICI Bank's securitisation programme Christ College- Pondicherry University 29
[Type text] -ICICI bank gets 'Best emerging market Bank ' award from the Global Finance Magazine -Mr. R Seshasayee who was appointed as Director on the Bank on May 03, 2002 has tendered his resignation as a Director of the Bank. -Action Aid has signed up with ICICI to launch the Karm Mitra credit card -The trading of ICICI issued bond October 2000- Tax Saving Bond - Option I ICICI1100 N1 (benefit u/s 88) was suspended -ICICI Bank introduced foreign currency term deposit scheme for non-residents including NRI's at its offshore banking unit (OBU) in Mumbai -ICICI tie up with Big Bazaar to introduce Co-branded Card specifically for Big Bazaar customers. -The company's asset-backed securities (ABS) worth Rs. 835 crore on October 09 obtained highest safety ratings from Icra. -The company unveiled its global deposits scheme for individuals from its Singapore branch. -Tied up with SBI and HDFC to share ATM networks - Has set up representative office in Dubai -Allotted 166857 equity shares of face value of Rs.10/- each on October 20, 2003 under the Employee Stock Option Scheme. -ICICI Bank unveils global deposits Christ College- Pondicherry University 30
[Type text] -Five persons have been arrested on the charge of duping ICICI Bank of Rs. 1.34 crore by encasing a cheque purported to have been issued by Fortis Banque of France. 2004 -ICICI bank credit cards cross two million mark - ICICI Banks 300 million dollar Eurobond has been awarded for being the best bond issue of India and emerging Asian market during 2003, by two foreign magazines. -ICICI e-Payments Ltd. has informed that they have acquired 8008357 shares amounting to 69.99% of the total paid up capital of Tata Infomedia Limited -ICICI Bank Ltd has informed that the Bank has allotted 1,25,444 equity shares of the face value of Rs. 10/- each on December 22, 2003 under the Employees Stock Option Scheme, 2000 (ESOS). -The government has allowed ICICI Bank to keep the Rs. 350 crore 20-year preference shares (subscribed to by ITC) in its books for five years. -ICICI Bank Ltd has informed that the Bank has allotted 73,980 equity shares of the face value of Rs. 10/- each on December 29, 2003 under the Employees Stock Option Scheme, 2000 (ESOS). -Bahrain Monetary Agency issues license to ICICI Bank's overseas unit. It also extended a special concession for offering NRI banking services in the island nation as well as in the international markets 2004
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[Type text] -ICICI Bank inks pact with Mohan Bagan to unveil co-branded credit card -ICICI-Overdrive awards for Honda City, Bajaj Pulsar -ICICI Bank ties up with Air Deccan -ICICI Bank opens new premises in Mangalore -ICICI Bank unveils mobile ATM in Kerala -ICICI Bank unveils International fixed deposit scheme at Singapore branch -ICICI Bank acquires Numero uno position in new remittance scheme -ICICI Bank sets up ATM in Thiruvananthapuram -ICICI Bank launches its new home Loan Scheme with Variable EMI -ICICI Bank Ltd has informed that the shares of the Bank are desisted from The Delhi Stock Exchange Association Limited with effect from February 11, 2004. -ICICI Bank, Mohun Bagan launch co-branded credit card -The world's largest micro-finance securitisation deal of $4.3mn completed between ICICI Bank and Share Microfin Ltd., a Hyderabad based micro financing organization -ICICI Bank signs a memorandum of understanding with Jammu and Kashmir Bank to share the ATM network. -ICICI Bank and Andhra Bank have announced a tie-up that enables sharing of their ATM networks.
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[Type text] -Global Finance magazine has named ICICI Bank as one of the "Best Emerging Market Banks Asia" in an exclusive survey to be published in the May 2004 issue. -Comes out with a public offering of equity shares at a price of Rs. 280 to raise Rs. 3500 crore with a green shoe option of Rs. 450 crore -ICICI Emerging Sector, the private equity arm of ICICI Bank, has acquired a 54 per cent stake in the Bangalore-based Arvind Brands, the apparel arm of the Sanjay Lalbhai-promoted Arvind Mills, -ICICI Bank unveils Car Overdraft facility -ICICI Bank, SBI, LIC in pact for Rs. 20,000-cr projects -ICICI Bank and Punjab National Bank have signed a memorandum of understanding (MoU) for ATM network sharing, giving customers access to over 2,200 ATMs in India. - ICICI Bank unveils co-branded credit card ICICI Bank Ebony -ICICI Bank has won the best bank award instituted by Asia money in the category of best domestic commercial bank in India -ICICI Bank has bagged the prestigious award of 'Best Retail Bank in India' in the category 'The Asian Banker Excellence in Retail Financial Services Program 2003' -ICICI Bank-Aircel jointly unveil new co-branded credit card
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[Type text] -Life Insurance Corporation acquires 16,370,009 shares constituting 2.23% of voting rights in the company, increases its stake to 73,382,324 shares constituting 10.09% of voting rights -Punjab and Sind Bank (PSB) and ICICI Bank on July 02 announced the launch of cobranded credit card that will be available in three variants - Gold, Silver and Blue credit card -ICICI Bank in association with Reliance Infocomm has launched an interactive mobile banking service in India -ICICI Bank unveils multi-branded card -ICICI Bank has introduced a pre-approved personal loan product for Global Trust Bank (GTB) customers -ICICI Bank bags Internet awards from Global Finance magazine -ICICI Bank Home Loans and ICICI Bank Home Search have launched `Home Utsav', a property exhibition at the Institute of Engineers -ICICI Bank Ltd on August 9, 2004, opened its representative office in Dhaka further increasing its international presence. In light of the significant bilateral trade links between the two countries, the bank greatly values the need to have an on-the-ground presence -ICICI Bank offers new service to Canada emigrants - Launches 'Hello Canada Newcomers Account' designed to provide instant access to banking services in Canada for Indians migrants on August 23 Christ College- Pondicherry University 34
[Type text] - ICICI Bank introduces an easy deposit card at an interest rate of 0.99 per cent -ICICI Bank rolls out kisan credit card in AP - Launches `Easy Deposit Card', which charges an interest of 0.99 per cent per month -ICICI Bank launches new mobile phone banking service -Sets up offshore banking unit (OBU) in Bahrain -Launches a new service for pre-paid subscribers of Airtel, Hutch, Orange and IDEA in association with Euronet to recharge cards through bank's ATMs or by sending SMS. -ICICI Bank has signed a deal with SunTec Business Solutions Private Ltd -ICICI Bank unveils Visa Card in UK
CREDIT RATINGS OF ICICI

ICICI banks credit ratings by various credit rating agencies are given bellow: TABLE-1 AGENCY Moodys Investor Service Standard & Poors(S&P) Credit Analysis & Research Ltd(Care) Investment Information & Credit Rating Agency(ICRA) RATING Baa3 BB+ CAREAAA AAA
2. 2.2. ORIGIN PROFILE
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[Type text] ICICI Bank was originally promoted by the erstwhile ICICI Ltd and the erstwhile SCICI Ltd .It was incorporated as a company under the companies Act, 1956 on 5th January, 1994 and received the certificate of commencement of business on 24th February, 1994. It was granted a license to carry on banking business in India by the RBI vide its letter no. DBOD (AH) No.3085/03.02.24B/94 dated 17th May 1994. The operations of ICICI Bank are mainly governed by the provision of the banking regulation Act, 1934 as a Scheduled Bank vide Gazette of India notification dated 5th July 1994. ICICI Bank was founded with the objective of providing quality banking services using state-of-the-art of technology. ICICI Bank has placed great emphasis on the need for competitive, efficient and low cost financial intermediation. ICICI Bank conducts banking operations in an organized, systematic and operationally sound manner. Towards this end, it has set up a fully computerized environment with state-ofthe-art technology at its offices and continuously upgrades its strong systems and procedures with special emphasis on risk management. ICICI Bank is India's second-largest bank with total assets of about Rs.112,024 crore and a network of about 475 branches and offices and about 1790 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset management and information technology. ICICI Bank's equity shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
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[Type text] ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and longterm project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal Banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and
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[Type text] provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly feebased services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank 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. Shareholders of ICICI and ICICI BANK approved the merger in January 2002, by the High Court of Gujarat at Ahmedabad 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.
DIVERSIFICATION OF ICICI BANK LTD Chart-2
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[Type text]
Chart-3 THE DIFFERENT LOGOS OF ICICI
SHARE HOLDING PATTERN JUNE 30, 2008 Paid-up capital Rs. 7.39 billion
TABLE 2
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[Type text] ADR FII'S & NRI'S BANKS FI'S & UTI'S RESIDENT INDIANS CORPORATE BODIES OTHERS SHARE HOLDING PATTERN
1.40% 3.90% 6.59% 15.68% 27.27%
27.3 45.2 15.7 6.6 3.9 1.4
ADR FII'S & NRI'S BANKS FI'S & UTI'S RESIDENT INDIANS CORPORATE BODIES OTHERS
45.15%
Chart-4
VISION OF ICICI
To be the preferred brand for total financial and banking solutions for both Corporate and individuals In line with its vision statement, ICICI has capitalized on market opportunities to stretch the borders of its business, and has evolved from a project finance institution to insurance, personal financial services, a financial supermarket providing end-toinvestment banking and venture capital, end financial services to corporate and retail providing fulfillment to practically all the customers. Today, the ICICI Group offers financial needs of individuals and products and services in the areas of companys corporate banking and commercial banking. Christ College- Pondicherry University 40
[Type text]
MISSION OF ICICI
ICICI bank as an organization has been built on the principles of professionalism, ethics and financial expertise. The Bank believes that its existence and development are closely interlinked with its ability to serve both the corporate and retail customers. This belief has evolved into its corporate philosophy of growth, innovation and stability. The bank aims to provide the benefits of universal banking to its corporate and retail clients and its investors. The goal is to ensure that dealing with ICICI Bank is safe, simple and efficient. ICICI Bank attempts to pursue growth and innovation without compromising on its stability. OBJECTIVES OF ICICI
To establish and carry on business of banking in any part of India or outside India. To carry on the business of accepting, for the purpose of lending or investments, of
deposits of money repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwise.
To borrow, raise or take up money, lend or advance money with or without interest
either upon or without security.
To draw, make, execute, issue, endorse, negotiate, accept, discount, buy, sell, collect
and deal with bill of exchange, hundi, promissory notes, coupons, drafts, bills of lading, railway receipts, warrants, debentures, bonds, mortgage-backed securities, letter of credit or obligations, certificate, scripts and other instruments and securities whether transferable or negotiable or mercantile or not.
To grant and issue letter of credit, travelers cheque and circular notes, buy sell and deal
in bullion and specie.
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To receive all kinds of bonds, scripts or valuables on deposits or for safe custody or
otherwise, provide safe deposit vaults, collect and transmit money, negotiable instruments and all securities.
To act as a foreign exchange dealer and to buy sell or otherwise deal in all kinds of
foreign currencies.
To carry on activities of bill discounting, rediscounting bills, factoring, dealing in

commercial papers, treasury bills, certificate of deposits and other financial instruments.
To act as an agent for any government or local authority or any other person or persons
carrying on agency business.
To contract for public and private loans and advances and negotiate and issue the same. To carry on and transact every kind of guarantee and indemnity business. To undertake and execute trusts and the Administration of estates as executor or trustee. To act as registrar and transfer agents and registrar to the issue, issue agents and paying agents.
To issue Debit or Credit cards to the customers or any other person. To do any other form of business, which the government of India may specifically as a
form of, business in which it is lawful for banking company to engage.
STRATEGY OF ICICI
The liberalization and growth of Indian economy provides ICICI Bank with significant opportunities to provide superior financial products and services to the corporate and the retail sector. ICICI Banks objective is to enhance its position as Indias premier financial service provider. The key elements of ICICI Banks business strategy are: 1. Focus on quality growth opportunities by: Building a strong retail franchise; Maintaining and enhancing strength in corporate banking; Building international presence.
2. Emphasize conservative risk management practices and enhanced asset quality. 3. Use technology for competitive advantage;
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[Type text] 4. Attract and retain talented professionals; and 5. Leverage on synergies from merger of ICICI and two of its subsidiaries.
AWARDS AND RECOGNITION FOR ICICI BANK & erstwhile ICICI LTD
2005 " Triple AAA Best Cash Management Country Award in India" by the Asset 2004 "Best Bank in India" by Euro money "Best High-Yield Borrower in India" by Euro money "India's Most Customer Friendly Bank" by Outlook Money "Best Bank" by Business India "India Derivative House of the Year" by Asia Risk "Best Consumer Internet Bank in India" by Global Finance "Best Corporate / Institutional Internet Bank in India" by Global Finance "Most Challenging IT Implementation Award" for the ICICI Bank EAI project by PC Quest "Best Domestic Commercial Bank" in India by Asia money "Best Emerging Market Bank in India" by Global Finance "Best Domestic Fx Bank in India" by Asia money Poll "Best Bank of the Year in India" by Finance Asia "Best Retail Bank in India" by Asian Banker "Best Foreign Exchange Bank in India" by Global Finance "India's Most Admired Private Sector Bank" by Business Barons 2003 "Best Bank of the Year in India" by Finance Asia "The Asian Banker Excellence in Retail Financial Services Program" by the Asian Banker "Best Bank Domestic Commercial Bank in India by Asia money Christ College- Pondicherry University 43
[Type text] "Best Emerging Market Bank in India" by Global Finance Magazine "Best Multi-Channel Strategy 2003' award by The Banker Magazine, UK. "Bank of the Year in India" by the Banker Grand Prize Winner in Peak Workload, Unix Environments, OLTP in Winter Corp.'s Top Ten Program DM Review Magazine-World Class Solution Award 2003 in the Business Intelligence category for its Teradata enterprise data warehouse solution. "Best Consumer Internet Bank in India" by Global Finance magazine "Best Integrated Consumer Bank Site in the Asia /Pacific Region" by Global Finance "Best Foreign Exchange Bank in India" by Global Finance "Best Trade Finance Bank in India" by Global Finance 2002 Bank of the Year from the Emerging Markets by the Banker Magazine of UK Bank of the Year 2002, in India, by The Banker Magazine of UK Best Managed Bank in Asia, in a Poll by Euro money India's top 5 most respected companies - Business World magazine Best Bank in India by Global Finance India's Most Admired Bank 2002 in the BB-TN Sofres Mode Poll 'Best Foreign Exchange Bank in India' by Global Finance. 'Excellence in Retail Banking' award by Asian Bankers Journal Best Consumer Internet Bank in India by Global Finance Best Bank in India by Global Finance India's Most Admired Bank 2002 in the BB-TN Sofres Mode Poll 2001 Best Retail Bank in India from the Asian Banker Product Innovation Award for Kid-e-bank account from the Asian Banker. India's top 5 most respected companies, Business World Magazine 2000 Best Bank Award by Global Finance.
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[Type text] I-payment was selected as a finalist in the commercial credit product or services category in the Asian Banking Awards Featured amongst the best 15 bank web sites in the world reviewed by Forbes Global. 1999 Best IT usage Award by TCS Limited and Computer Society of India. Asian Banking Award by the Asian Banker's Association for record collections under the Resurgent India Bonds Scheme.
2.3. PRODUCT/ SERVICES PROFILE

ICICI Bank boasts of a comprehensive suite of products and services that make it a universal bank. The main offering of ICICI bank is below: 1. SAVINGS BANK ACCOUNT ICICI Bank offers a power packaged account that offers a host of convenient features. This includes access to the accounts. Anywhere: Being one of the largest banking networks in the country with the 560 branches, 1,900 ATMs and presence in over 280 cities across the country. Anytime: you can access your account from any of the ICICI Bank ATMs across the city or the country 24 hours a day, 7 days a week. Anyway: Access to vast majority of services through the ATM, phone and the internet like ordering a cheque book, viewing the balance, etc so that the account holder never needs to visit a branch for doing a business. The savings bank account earns the customer 3.5% interest rate per annum.
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Value Added benefits include:

Quantum Optima / Automatic sweep facility: On opening the savings account, if the balance in the account exceeds Rs. 10,000 the additional amount gets automatically shifted into fixed deposits in multiple of Rs. 5000. This amount is totally liquid and is withdrawn. Interest is calculated on a LIFO basis 2. BILL PAYMENT: Utility bills like telephone, mobile phones, electricity bills etc can be paid online or through phone banking. 3. INVESTMENT SERVICES: The account holder can make the investment in mutual funds, RBI Bonds and insurance as well as trade in the stock market through ICICI Direct.com through ICICI Bank. Standing instructions: Can be given like transferring funds to another account at regular intervals. Free personalized cheque book: With an ICICI Bank account the holder will gets a free cheque book with his name written in style at the bottom free of charge. Minimum balance to be maintained: All the above can be availed by maintaining a quarterly average balance of Rs. 5000. Christ College- Pondicherry University 46
[Type text] 4. ICICI BANK YOUNG STARS ACCOUNT/ (ACCOUNT FOR MINORS) Young stars is banking a service fir children aged 1-18 years , offered by ICICI Bank to help the parents to meet the present and future aspirations that they hold for their child. It offers various savings ad investment options to the parent along with teaching the child to manage his/her personal finance in a more responsible and independent manner. The main offerings of this account are: Options of a savings bank account, Fixed Deposits account or Recurring Deposits Account. Minimum balance at Rs. 500/- per quarter for savings Bank. A special recurring deposit account with additional features as below: The parent would put forward the desired amount to be earned at the end of the tenure. Based on the prevailing rate of interest, the bank staff would then back calculate the installments to be deposited now till maturity Free personalized cheque book. Free domestic debit card for the child above the age of 10 years with features as below: Daily withdrawals limits of Rs. 1,000/Daily spend limits of Rs. 1000/Special privileges across all alliance partners outlets. Facility to invest in GOI Relief and Mutual Fund.
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[Type text] 5. FREE INTERNET BANKING: Separate user Id and password for both parents and children. Special Shopping powers up to Rs. 1000 for the children above 10 years of age. Access to special zones and links to related websites for making internet Banking a memorable experience. Facility to transfer funds from parent account to kid account to enable parent to inculcate savings habit amongst children.
6.
BANK @ CAMPUS OR STUDENT BANKING SERVICES

Bank @ campus is basically a savings account designed for students. It requires a quarterly average balance of just Rs. 500 to be maintained and offers the below features: Free personalized cheque book Free Phone Banking Free ICICI Bank Ncash debit card Free transfer of funds into his/her account from any ICICI bank account Free supplementary credit card (if you have an ICICI Bank credit card) Annual statement of accounts.
7.
ICICI BANK SALARY ACCOUNT

ICICI Bank salary account is a benefit rich payroll account for employers and employees. Organizations can opt for salary accounts to enable easy disbursements of salaries and enjoy numerous other benefits too. With ICICI Bank salary accounts the employees will enjoy the convenience of: Having the largest network of ATMs at their command Free 24 hours phone banking Free internet banking. 48
[Type text] The requirements of the company is to send ICICI Bank an advice (in form of a cheque /debit instruction 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 the company in more than one ways: Reduce paper work. Savers remittance costs. Employees receive instant credit of salaries. Besides all the above, employees will automatically become ICICI Bank account holders with special benefits and privileges of reduced minimum balance norms.
8.
ROAMING CURRENT ACCOUNT

The roaming current account from ICICI Bank travels the distance with ones business. With advanced technological features such as Multi-City Cheques and local cheques collection, banking needs are well taken care of. Account can be accessed at over 475-networked branches across the country. There is also round the clock phone banking and also one can log in to www.icicibank.com or even get Mobile banking alerts. Some of the other benefits are: Multi city cheque facility. Anywhere banking facility. Upcountry cheque collection. Pay orders and Demand drafts. Phone banking facility. 49
[Type text] Doorstep banking facility. Internet banking facility. Debit/ATM Card. Mobile Banking Facility.
9.
DEBIT/ATM CARD
This facility is available for sole proprietorships and partnership concerns. Debit/ATM card be used for the following transactions. Cash Withdrawal. Cash Deposit. Balance Inquiry. Cheque book request. Mini account statements.
Transactions at various merchant establishments across the country
10.
RECURRING DEPOSITS
Recurring deposits are an ideal way to invest small amounts of money every month and end up with a very large savings of maturity. These deposits encourage savings and loans can be claimed against the deposits. The minimum balance of deposit is Rs. 1,000 and thereafter in multiples of Rs. 100. The minimum period is 6 months and thereafter in multiples of 3 months.
11.
CREDIT CARDS
Various types and kinds of credit cards are offered by ICICI bank. These are all different to car themed and suits ones budget. The wide offerings are:
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[Type text] True Blue Card, Sterling Silver, Solid Gold Card, HPCL Silver Card, HPCL Gold Card, BPL Mobile Credit Card, Amway Credit Card, ICICI Bank American Express Card, ICICI Bank Gold American Express Card, ICICI Bank Big Bazaar Credit Card & ICICI Bank True Value Credit Card.
12.
GOVERNMENT OF INDIA BONDS

The government of India 8% savings Bonds (Taxable): The 8% option however, is for resident Indians, Hindu Undivided Families, charitable institutions and universities. They attract a high interest rate of 8% per annum, which are subjects to tax as applicable. The tenure for these bonds is 6 years and is exempt from wealth tax.
13.
ICICI BANK NRI SERVICES

A wide range of services tailored to the specific needs of NRIs. The bank offers internet banking remittance, tax advisory and investment facilities.
14.
MUTUAL FUNDS
There is a great scope to invest in mutual funds managed by experienced and professional asset management groups. The very essence of a mutual fund is a diversification and this it self reduces risk. The fund will invest in stocks of different companies and different industries. The ICICI Bank has started new services called Investment & Services Group in its all branches. This will provide the free advice to its customer about the different.
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[Type text] Investments and mainly it concentrates on the investments in mutual funds. It will give assistance to its customer depending upon the following criteria. The age of the investor The holding time horizon of an investment The risk profile of the investor The investment amount (fund) and also ICICI Bank is the broker of the other mutual funds namely Birla Sun Life Mutual Fund. DSP Merrill Lynch Mutual Fund. Franklin Templeton Mutual fund. HDFC Mutual Fund. HSBC Mutual Fund. JM Mutual Fund. Kotak Mutual fund. PRUDENTIAL ICICI Mutual Fund. Reliance Mutual Fund . Standard Chartered Mutual Fund. TATA Mutual Fund. These offer various options based on the requirement of the investors like Liquid Plan, Income Plan, Gilt-Treasury, Gilt-investment, Balanced Fund, Growth Plan, Tax plan, FMCG Fund.
15.
ICICI Bonds
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[Type text] ICICI offers to its customers a wide range of long-term deposits products like safety bonds, Tax Saving Infrastructure Bonds, Children Growth Scheme, and Pension Bonds and issued by ICICI through periodic public issues. All ICICI Bank Bonds have been rated AAA by CARE and LAAA by ICRA indicating the highest degree of safety for your money. The bonds are listed on NSE, BSE and VSE.
16.
SENIOR CITIZENS SERVICES

ICICI presents the senior citizen services, which primarily comprises of a savings bank account thats an ideal investment choice for citizens above 60 years of age. The advantages are: Higher interest rates on Fixed Deposits The deposit scheme offers preferential rates to senior citizens, i.e., 5% higher interest compared to the interest earned on fixed deposits.
17.
LOANS AGAINST DEPOSITS

As a special gesture to senior citizens, ICICI Bank the facilities of availing up to 90% loan on the fixed Deposit amount. Also the rate of interest on the loan is only 1% over the rate of interest on the fixed deposit. Free Collection of Cheques
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[Type text] The senior citizens can avail free collection outstation cheques drawn on location where ICICI Bank has a presence.
18.
LOANS
ICICI Bank offers the different categories of loans to its customers at highly competitive interest rates. Following are the different loans offered by the ICICI Bank I) HOME LOANS ICICI Bank offers you the most attractive interest rates, along with complete doorstep services. Loans ranging from Rs. 1 lakh to Rs. 1 Crore are available, with repayment period up to 30 years. Each home loan comes with a free accident insurance cover. Moreover no guarantors are required, and there no charges for the part prepayment. II) PERSONAL LOANS An all purpose customer friendly loan with no security, collateral or guarantors available from as low as Rs. 20000 to Rs. 5 lakh with a wide range of repayment tenures. III) CAR LOANS ICICI Bank Car Loans are tailor made to suit all customers needs. Customer can avail of finance up to 90% of the value of the car. Most attractive interest rates coupled with customized loan options and tenures ensure the best possible deals for all customers IV) CONSUMER DURABLE LOANS
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[Type text] Customer can able to avail loans ICICI Bank provides customized options to ensure that customer get the best value with great ease. Customer can able to avail up to 85% of finance. Loans by the way of an overdraft facility against the pledge of demat securities provided by ICICI Bank. The best interest rates and loans of value added services come with this loan. Systems, a minimum loan of Rs. 7000 repayable in convenient options of 6 to 36 monthly installments is offered For durables products like color TVs, Refrigerators, Washing Machines, Microwave Ovens or Music. V) LOANS AGAINST SECURITIES VI) TWO WHEELER LOANS
ORGANIZATION STUDY-MCKINSEY 7S MODEL

The Seven Framework first appeared in The Art of Japanese management by Richard Pascale and Anthony Athos in 1981. They had been looking at how Japanese industry had been so successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of the four authors in 1978. It went on to appear in In Search of
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[Type text] Excellence by Peters and Waterman, and was taken up as a basic tool by the global management consultancy McKinsey: its sometimes know as the McKinsey 7S model. This is because, Tom Peters and Robert Waterman, were consultants at McKinsey& Co at that time. The model starts on the premise that an organization is not just Structure, but consists of seven elements: i.e., Strategy, structure, systems, style, staff, super ordinate goals (also known as shared values), and skills. According to them, managers, need to take account of all seven of the factors to be sure of successful implementation of a strategy-large or small. All the seven Ss are interdependent, and proper attention should be paid to each one of them. Those seven elements are distinguished in so called hard Ss and soft Ss. The hard elements are feasible and easy to identify. They can be found in strategy
statement, corporate plans, organizational charts and other documentations. The four soft Ss however, are hardly feasible. They are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a great impact of the hard Structures, Strategies and Systems of the organization.
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[Type text] chart-5
DESCRIPTION THE HARD SS STRATEGY: Actions a company plans in response to or anticipation of changes in its external environment. STRUCTURE: Basis for specialization and co-ordination influenced primarily by Strategy and by organization size and diversity. SYSTEMS: Formal and informal procedures that support the strategy and structure.
(Systems are more powerful than they are given credit) The Soft Ss STYLE/CULTURE: The culture of the organization, consisting of two components:
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[Type text] Organizational Culture: the dominant values and beliefs, and norms, which develop over time and become relatively enduring features of organizational life. Management Style: more a matter of what managers do than what they say; how do a companys managers spend their time? What are they focusing attention on?
Symbolism-the creation and maintenance (or sometimes deconstruction) of meaning is a fundamental responsibility of managers.
STAFF: The people/human resource management-processes used to develop managers, socialization processes, and ways of shaping basic values of management cadre, ways of introducing young recruits to the company, ways of helping to manage the careers of employees. SKILLS: The distinctive competences- what the company does best, ways of expanding or shifting competences Shared Guiding concepts, fundamental ideas
around which a business is build-Values/ must be simple, usually stated at abstract level, have great meaning Super may not see or Ordinate GOALS If one element changes then this will affect all the others. For example, a change in HR-systems like internal career plans and management training will have an impact on organizational culture (management style) and thus will affect structures, processes, and finally characteristic competences of the organization. inside the organization even though outsiders
understand them
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[Type text] The 7-s Model is a valuable tool to initiate change processes and to give them direction. A helpful application is to determine the current state of each element and to compare this with the ideal state; Based in this it is possible to develop action planes to achieve the intended state.
7S MODULE OF ICICI
1. STRATEGY ICICI Bank has also bagged the Best Multi-Channel Strategy 2003, in the banker Awards 2003. The bank has won the award for successfully implementing the multi-channel strategy combining traditional banking channels with newer alternative channels to expand its geographical pr essence despite underdeveloped communications infrastructure. It also follows the Strategy of building a diversified and derisked asset portfolio. ICICI Banks Growth Strategy involves: Fully tap the growing market through higher incremental market share than competition Adopt innovative strategies to expand the market Greater geographical penetration Introduction of new products in various segments. Provide high quality customer convenience & service
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[Type text] ICICI has pursued the business strategy of becoming a universal bank. The business strategy in the retail operations is to establish a strong financial services brand, and to offer a comprehensive range of innovative financial pr9oducgs and services across the country, using multiple distribution channels. This strategy has rapidly boosted the retail business both in terms of deposits and assets. The bank has a solid retail distribution franchise with about 540 branches and offices, over 1790 ATM, more than five million deposit accounts and one million Internet banking customers. ICICI Bank also has a micro finance strategy. It is finding innovative and profitable ways to extend financial services to the rural poor. Prompted in part by regulation that requires all banks to serve the rural market, ICICI Bank is developing multiple channels to deliver micro finance. It proposes to finance a network of village internet kiosks, partner with micro finance institutions (MFIs) who will act as loan service agents, and collaborate with social entrepreneurs to establish Greenfield MFIs.
The banks wholesale banking strategy involves: 2. Rapidly grow market share in fee-based products and services. Focus on highly rated corporate finance. Leverage corporate relationships to cross-sell. Limited project finance business with focus on syndication and sell-down. STRUCTURE
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[Type text] ICICI bank believes that the structure of an organization needs to be dynamic, constantly evolving and responsive to changes b9oth in the external and internal environments. Their organization structure is designed to support their business goals, and is flexible while at the same time ensuring effective control and supervision and consistency in standards across business groups.
The organization structure is divided into 5 principal groups:1. Retail Banking . The Retail-banking group comprises ICICI Banks retail assets business including various retail credit products, retail liabilities (including deposit accounts) and rural micro banking. 2. Wholesale Banking. The Wholesale Banking Group comprises ICICI Banks corporate banking business including credit products and banking services, with separate dedicated groups for large corporate, Government and public sector entities and emerging corporate. Treasure, structured finance and credit portfolio management also form part of this group. 3. Project Finance & Special Assets Management. The Project Finance Group comprises the project finance operations for infrastructure, oil & gas, manufacturing and shipping sectors. The Special Assets Management Group is responsible for large non-performing loans and accounts under watch.
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[Type text] 4. International Business. The International Business Group is responsible for ICICI Banks international operations as well as co-coordinating the international strategies and alliances of its subsidiaries and affiliates. 5. Corporate Centre. The Corporate Center comprises all shared services and corporate functions, including finance and secretarial, investor relations, risk management, legal, human resources and corporate branding and communications.
ORGANIZATION STRUCTURE
Chart-5
Chairman (N Vaghul)
Managing Director & CEO (K V Kamath)
Joint Managing Director (Lalitha D Gupte) Christ College- Pondicherry University
Joint Managing Director (HN Sinor) 62
[Type text]
Exec. Director. Corp. Center (Kalpana Morparia)
Exec Director Project Fin & Spl. Assets (S Mukherji)
Exec Director Retail Banking (Chanda D Kochhar)
Exec. Director Wholesale Banking (Nachiket Mor)
Senior Senior General Structure Contd. General Organization Manager Manager
Senior General Manager
General Manager General Manager Joint General Manager General Manager General Manager Joint General Manager General Manager
Deputy GM
Deputy GM
Deputy GM
Deputy GM
Asst. GM
Asst. GM
Asst. GM
Chief Manager
Chief Manager
Chief Manager
Manager
Manager
Asst.Manager
Asst.Manager
Sen Officer Christ College- Pondicherry University
Sen Officer
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[Type text]
Officer
Officer
3. SYSTEMS The decision-making systems within the organization can range from management intuition, to structured computer systems to complex expert systems and artificial intelligence. It includes: Computer Systems Operational Systems HR Systems, etc ICICI bank uses powerful-networked computer database known as finnacle. The bank has also needed to manage the technology risks associated with migration from its legacy systems to the new technologies necessary to manage the increasing volumes of transactions at net speed. The bank also has its own performance review and reward systems, which is very unique and powerful in the industry. ICICI Bank is at the forefront of usage of technology in the financial services sector. It has used Information Technology as a strategic tool for its business
operations, to gain competitive advantage and to improve overall productivity and efficiency of the organization. Christ College- Pondicherry University 64
[Type text] Enhanced level of customer services like 24/7 services, Internet banking, multi channel banking, etc Cost efficiency like reduction in traditional branch network/service staff, wider and focused market reach and opportunities for cross selling Application of Information Systems to effectively market to their target customers and to monitor and control risks. ICICI Bank was one of the first banks in the country to put in place a nationwide data communications network connecting all its offices/branches. It has also installed an advanced banking system, which addresses its corporate banking as well retail-banking requirements. It is robust, flexible and scalable and allows ICICI bank to effectively and efficiently serve its growing customer base. 4. STYLE Style refers to 2 components: 1. Organizational Culture: the dominant values and beliefs, and norms, which develop over time and become relatively enduring features of organizational life. 2. Management Style: more a matter of what managers do than what they say; how do a companys managers spend their time/ What are they focusing attention on/ Symbolism-the creation and maintenance (or sometimes deconstruction) of meaning is a fundamental responsibility of managers behave? In ICICI bank, the style adopted is a participative one wherein information can flow upwards to the top management from down. In this way different consumer wants, attitudes, behavior, etc can be analyzed in a much more effective manner.
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[Type text] 5. STAFF The management believes that it has a good relationship with its staff. ICICI Bank has a staff center which serves as a forum for grievances, pay and benefit negotiations and other industrial relations matters. ICICI Bank attracts the best graduates from the premier business schools of the country. It dedicates significant amount of senior management time to ensure that employees remain highly motivated and perceive the organization as a place where opportunities abound, innovation is fuelled, teamwork is valued and success is rewarded. Robust ability-testing and competency-profiling tools are being used to strengthen the campus recruitment process and match the profiles of employees to the needs of the organization. ICICI Bank is one of the most preferred employers at leading business schools and higher education institutions across the country, offering a wide range of career opportunities across the entire spectrum of financial services. In addition to campus recruitment, ICICI Bank also undertakes lateral recruitment to bring new skills, competencies and experience into the organization and met the requirements of rapidly growing businesses. A Six Sigma initiative has been undertaken for the lateral recruitment process to improve capabilities in this area. ICICI Bank encourages cross functional movement, enriching employees knowledge and experience and giving them a holistic view of the organ9isation while ensuring that the bank leverages its human capital optimally. Employee compensation is clearly tied to performance and ICICI Bank encourages the involvement of all its employees in its overall performance and profitability through profit sharing incentive schemes based on the financial results. A
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[Type text] revised performance appraisal system has been implemented to assist management in career development and succession planning. ICICI Bank views its human capital as a key source of competitive advantage. Consequently, the development and management of human capital is an essential element of their strategy and a key management activity. ICICI Bank boasts of its ability to nurture individuals and provide them the space and empowerment they need to hone their talents. The size of the organization gives them the unique ability to provide fast growth and high responsibility early in ones career as well as multiple avenues to reach the top. 6. SKILLS A companys skills can includes hard assets such as financial strengths and dominant market share, but it takes the human and managerial input to translate these into a sustainable competitive advantage. ICICI Bank has a training center Khandala, which conducts a series of training programs designed to meet the changing skill requirements of its employees. These training programs include orientation sessions for new employees and management development programs for mid-level and senior executives. The training center regularly offers courses conducted by faculty, both national and international, drawn from industry, academia and from the company itself. Training programs are also conducted for developing functional as well as managerial skills. The competencies required at the entry level in ICICI Bank include: Drive for results Process Orientation
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[Type text] Interpersonal Effectiveness Analytical Thinking Innovation & Team Effectiveness ICICI Bank Ltd has played an important role in setting up and supporting various programs imparting management education.
7. SHARED VALUES/SUPER ORDINATE GOALS ICICI Bank has constantly focused on building shareholder value as its primary objective. Their approach to shareholder value creation has extended beyond delivering near-term financial results, to developing a sustainable, long-term value proposition. The key elements of their strategy have been to capitalize on new business opportunities, build a strong brand and distribution capability, leverage technology, establish robust systems and processes and develop their human capital. They believe these elements are essential enablers of future growth. The Bank as an organization has been built on the principles of professionalism, ethics and financial expertise. It is ICICI Banks firm belief that its existence and development are closely interlinked with its ability to serve both retail and corporate clients well. Over the years, this belief has evolved into its corporate philosophy of growth, innovation and stability. ICICI Bank constantly endeavors to create products that best met the specific needs of its clients and investors. In addition, ICICI Bank also seeks to deliver these
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[Type text] products effectively and efficiently. It therefore, sets for itself high standards of service and constantly strives to improve upon them. The goal is to ensure that dealing with ICICI Bank is safe, simple and efficient.
DESIGN OF THE STUDY

RESEARCH DESIGN
TOPIC:
ANALYSIS OF FINANCIAL PERFORMANCE OF ICICI BANK LIMITED

INTRODUCTION:
A study on Financial Performance of ICICI Bank limited is under taken In order to know the financial position, liquidity position of the bank and to know the strength & weakness of the bank & to assess the profitability of the bank. Ratio analysis is the tools used as a yardstick for evaluating the financial condition and performance of business firm.
SCOPE OF STUDY:
The Study is totally confined to ICICI Bank. The Annual Reports of the company are the primary data for the report. The financial information regarding balance sheet items are based on the balance sheet figures on the P&L account figures.
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[Type text] The annual reports of the past five years consisting of P&L Account and Balance Sheet are analyzed and interpreted to arrive at the ratios.
PLAN OF THE STUDY:

The financial statement analysis and interpretation is used to study the performance of the company. The ratios belonging to different groups are calculated and the trend of each ratio over the years is worked out. Graphs are drawn for a better understanding of the concepts and theories.
OBEJECTIVES OF THE STUDY:

To study the financial position of the ICICI Bank Limited. To find long term and short term liquidity position of ICICI Bank Limited. To know the strength and weakness of the ICICI Bank Limited. To assess the profitability of the ICICI bank Limited. To compare the ratios of the various years.
RESEARCH METHODOLOGY
For the purpose of preparing the report the necessary information collected are divided into two heads that is primary and secondary data.
SECONDARY DATA: Past records Annual reports of the company Induction material provided by the co.
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[Type text] Companys publications Internet
Analytical tools used:

Ratios Income Statement Balance Sheet
LIMITATIONS:
Some data are confidential to the bank which was not possible to be used in the project. Ratios are generally calculated on past financial statement and thus forecast for the future is based on past data.
THEORETICAL BACKGROUND OF THE STUDY FINANCE AND RELATED CONCEPTS:
Meaning of Finance:
Finance is the support to any business in terms of money or moneys worth. It is the lifeblood of the economy. Finance includes determining what has to be paid for raising the money on the best terms available and utilizing the available funds in the best possible way.
Definition of Business Finance:

Christ College- Pondicherry University 71
[Type text] The activity concerned with planning, raising, controlling and administering of funds used in business Guttmann and Dongall.
Sources of Finance:
Short-term requirements are required for meeting working capital needs usually needed for a period within one year. Long-term requirements are required to a great extent for meeting fixed capital requirements, usually needed for a period exceeding one year.
Chart-6
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[Type text] SOURCES OF FINANCE
According to Period
According to Ownership
According to Source of Generation
Long Term
Short term
Own Capital
Borrowed Capital
Internal Sources Retained Earnings Depreciation Fund
External Sources Securities Loans
Shares Debentures Long term loans
Public Deposits Trade Creditors Advance from commercial Customer
Shares Capital Retained Earnings Surplus
Debenture Public Deposit Loans
Functions of Finance:
1) Investment Decision. Capital Budgeting Working Capital Management
2) Financing Decision. 3) Dividend Policy Decision.
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[Type text]
Financial Statements:
They refer to two statements, which are prepared by an organization at the end of the year: Income statement or Profit and Loss Account to know the profit earned and loss sub stained during a specific period. Position statement or Balance Sheet in order to known its financial position as on a particular point of time, usually one year.
Analysis of Financial Statement Interpretation:

By Myer: Financial Statements analysis is largely a study of relationship among the various financial factors in a business as disclosed by a single set of statements and a study of the trend if these factors as shown in a series of statements
By Kennedy & Meaullar: The analysis and interpretation of financial statements are an attempt to determine the significance and meaning of the financial statements data so that a forecast may be made of the prospects for future earnings, ability to pay interest and debt maturities and profitability of a sound dividend policy.
Tools of financial analysis:

1. Comparative Statements Analysis 2. Common Size Statement Analysis 3. Trend-Percentage Analysis
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[Type text] 4. Ratio Analysis 5. Funds Flow Statement Analysis
Limitations of financial statement analysis:

Historical nature of financial statements. Non substitute for judgment Reliability of figures Single year analysis is not of much value and useful Results may have different interpretations Change in accounting methods Pitfalls in inter firm comparison. Price level changes reduce validity of analysis. Financial Analysis becomes a need, a requirement due to the above significance it provides to the people involved.
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[Type text]
DATA ANALYSIS AND INTERPRETATION

Ratio analysis, ratio technique or ratio accounting is an important quantitative technique used for the analysis and interpretation of financial statements. In fact it is a powerful tool of financial position and performance of the firm. Before going to study about the financial ratio one should know the meaning of the Ratio. A ratio is defined as the indicated quotient of two mathematical expressions and as The relationship between two or more things. Financial statements, no doubt, contain the items relating to the profit or loss and the financial position of a concern. But the financial figures reported in financial statement do not provide a meaningful understanding of the performance and financial position of a firm. The items or figures found in the financial statements will not be of much use, if they are considered independently (i.e. individually) the accounting figure conveys meaning when it is related to some other relive and information. For instance the item of the net profit will be meaningful, not when it is considered in isolation, but only when it is compared in the light of sales or capital employed in the business. For instance a Rs. 5 Crore net profit figure may look impressive, but the firms performance can be said to be good or bad only when the net profit figure is related top the firms investment. So if the items appearing in the financial statements are to be really meaningful and useful to a financial analysis, they should be analyzed (i.e. classified and arranged) in such a way that one item can be compared with other items.
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[Type text] Ratio analysis or ratio technique is one of the tools available to a financial analyst for the financial statements.
MEANING OF RATIO ANALYSIS:

Ratio analysis is the technique of calculating a number of accounting ratios from the data or figures in the financial statements, comparing the computed accounting ratios. With those of the previous years or with those of others concerns engaged in similar line of activities or with those of standard or ideal ratios, and interpreting the comparison.
Functions of ratio analysis:

The Functions of ratio analysis are as follows i. ii. Ratio analysis measure the firms ability to meet current obligation Ratio analysis show the proportions of debt and equity in financing the firms assets iii. iv. v. vi. Analysis of ratios reflect the firms efficiency in utilizing its assets Ratio analysis measures over all performance and effectiveness of the firm Ratio analysis will determine in future the financial strength. Ratio analysis technique attracts the investors. As the investors are interested on their return on investment so they use this technique to calculate their return there by get attracted by the companies. This through ratio analysis.
Objectives of Ratio analysis:

i. ii. iii. To evaluate the profitability of the firm To Evaluate & measure the financial strength of the firm To highlight the liquidity and profitability of the firm 77
[Type text] iv. v. To know whether the firm is in a position to meet its current obligation To measure the firms performance with the other firms that is inter firm
comparison.
Advantages of Ratio Analysis:

i. Lee observed that the process of producing financial ratios is essentially concerned with the identification of the significant accounting data relationships given the decision maker insights into the company that is assured. ii. A ratio analysis involves a study of the total financial picture. By basing conclusion upon a thorough understanding of the importance of each ratio, the analyst can recommend and indicate positive action with confidence. iii. One of the most fruitful areas for the use of traditional financial ratios seems to be that of predicting company failures. iv. Rations are a tool, which enables management to analyses business situation and to monitor their performance as well as that of their competitors. v. Ratio analysis helps the management to diagnose the situation, monitor the performance and help plan forward.
Limitations of ratio analysis

1. Every firm adopts its own accounting procedures and practices. Hence these accounting procedures and practices differ from one firm to another. It is therefore not advisable to compare the ratios of the firm with those of another firm. 2. Another limitation of the ratio analysis is that it will not take into account nonaccounting data for computation. The performance of an organization cannot be measured only on the basis of the accounting data.
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[Type text] 3. Ratio can never be the substitute of raw figures. At the time of interpretation, raw figures should also be considered. 4. Ratios are computed on the past data. Such ratios may not be relevant for future forecasting because of change in time and price levels. 5. Ratios are not universally applicable. They are not useful to well-established companies as they do not depend upon external sources of finance. 6. Financial standard data are not exact. Statements are only like interim reports. Moreover, many management ratios are based on data, some or all of which are known and factual and, have, therefore, to be treated with great caution.
BANKING SPECIFIC RATIO 1. AVERAGE COST OF FUNDS EMPLOYED

= Total interest paid X 100 Total deposit received TABLE 3 (In Lakhs) 2006-07 2007-08 701,525 6570890 6,810,858 9981877 10.30 65.83
Years Total interest paid Total deposit received Average cost of fund employed % INFERENCE:
2003-04 83767 1637821 5.11
2004-05 155892 3208511 4.86
2005-06 794400 4816931 16.49
According to analysis it is seen that over the year from 2003 to 2008 the interest rate is fluctuating. Initially it was in 2003-04is 5.11% but next it was reduced to 4.86.then in the year 2004-05 its 16.49% in the year 2006-07 it was again reduced to 10.30% the reduction in the last year is most attributable to the managerial efficiency by
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[Type text] the bank. On the other hand the total deposit received was positive from2004 to 2008 it is not a good sign according to the analysis. Overall the average cost of fund employed is very fluctuating starting from 2003-04 to 2007-08 i.e. 5.11, 4.86, 16.49, 10.30 and 65.83 according to above figure it is a healthy sign for the bank. This will increase the profitability of the bank. FIGURE 1
Average cost of fund employed % 70 60 50 40 30 20 10
65.83
5.11 0 2003-04
4.86
2004-05
16.49
2005-06
10.3
2006-07 2007-08
Average cost of fund employed %
Figure-2
Status of Interest paid & Deposits recd

12000000 10000000 8000000 6000000 4000000 2000000 0 2003-04 2004-05 2005-06 2006-07 2007-08
Total interest paid Total deposit received
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[Type text] 2. CREDIT DEPOSIT RATIO: =Loans & Advances X 100 Deposits Table-4 Years Loans and advances Total deposit received Average INFERENCE: According to the data, though there is an increase in deposits in all the years i.e. from 2003-04 to 2007-08 (51.05, 66.61, 70.72, and 68.23 respectively) but has not matched by increase in advances which are as follows from 2004 to 2008 (14.95, 88.28, 85.80 and 67.93). Finally we can notice that the credit deposit ratio is as follows in the following year 2004 to 2008 i.e. 29.29, 132.53, 121.32 and 99.56 which shows there is a decline in the percentage of increase from last one year. So we can conclude that the funds that have been raised by the banks are not utilized to desired level. The following chart justifies the above inference. Figure-3
Credit Deposit Ratio
160 140 120 100 80 60 40 20 0 2003-04 2004-05 2005-06 2006-07 2007-08
2003-04 2004-05 2005-06 2006-07 2007-08 703146 4703487 5327941 6,209,552 9140515 1637821 3208511 4816931 6,810,858 9981877 42.93 146.59 110.61 91.17 91.57
Average
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[Type text] Figure-4
Status of Loans, Advances & Deposits

12000000 10000000 8000000 6000000 4000000 2000000 0 2003-04 2004-05 2005-06 2006-07 2007-08
Loans and advances
Total deposit received
3. CREDIT CAPITAL RATIO

= Advances Equity capital TABLE-5 Years Advances Equity Capital Times INFERENCE: The advances made by the bank were high in first 2 years i.e.2003-04 & 2004-05 (14.94, 88.27 resp.) and decline in 2005-06 and 2006-07 (85.85 and 67.93). Since the Credit Capital Ratio is first two years increasing (65.33 to 88.25) but later it is decreasing it is not healthy tom the bank. 2003-04 703146 22036 31.91 2004-05 4703487 96303 48.84 2005-06 5327941 96266 55.35 (In Lakhs) 2006-07 2007-08 6,209,552 91,405,15 96,640 1,086,775 64.25 84.11 X 100
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[Type text] FIGURE-5
Credit Capacity Ratio

90 80 70 60 50 40 30 20 10 0
84.11 55.35 64.25
Times
48.84 31.91
2003-04
2004-05
2005-06
2006-07
2007-08
Times
Years
FIGURE-6
Advances & Equity Capital
1200000 Amounts 1000000 800000 600000 400000 200000 0 2003-04 2004-05 2005-06
Equity Capital
2006-07
2007-08
4. CREDIT NETWORTH RATIO

= Advances X 100 Net worth TABLE- 2003-04 Advances 703146 Capital 22036 Reserves & Surplus 109226 Share holders fund 131262 Times 5.36 Years 2004-05 4703487 96303 563554 659857 7.13 2005-06 5327941 96266 632065 728331 7.32 2006-07 2007-08 6,209,552 91,405,15 96,640 108677 739,416 1181319 836055.73 1,289,996 7.43 7.74
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[Type text]
INFERENCE: According to analysis the advances made by the bank were high in first two years in 2004 & 2005 i.e. 68.67, 429.26 and decline in 2005-06 i.e. 2.07 and also increased in 2008 (85.85%).The capital of the bank was high in 2004-05 (337.03%) and then there was a negative growth of -0.04% and then in 2004-05 it managed at lost of 0.39%. Reserve & Surplus of the bank was increasing from 109226 IN 2003-04 to 1181319 Lakhs (2007-08) The Credit Net worth Ratio as calculated from the table shows that there was increase in beginning to end 2003-04 to 2007-08 i.e. 5.36, 7.13, 7.32, 7.43 and 7.74 respectively. Since the Credit Net worth Ratio is increasing from starting to end which will help the bank to grow at higher rate. FIGURE-7
Status of Advances and Shareholders Fund 1400000 1200000 1000000 800000 600000 400000 200000 0 2003-04 2004-05 Advances 2005-06 2006-07 2007-08
Amount
Share Holders Fund
84
[Type text] FIGURE-8

Credit Netwoth Ratio
10 Ratio 8 6 4 2 0 2003-04 2004-05 2005-06 YEA RS Tim es 2006-07 2007-08 5.36 7.13 7.32 7.43 7.74
5. CREDIT TO CURRENT LIABILITIES AND PROVISIONS = Advances X 100 CL & Provisions TABLE-7
(In Lakhs)
Years
Advances Other liabilities A. Demand deposits B. Savings bank deposits CL & provisions Times 2003-04 703146 101297 262186 188064 551547 1.27 2004-05 4703487 2005-06 5327941 2006-07 6,209,552 2007-08 9140515 2139616 954524 1139182 4233322 2.18
1620758 1705693 1,801,949 273615 368944 521,665 249700 379321 536,338 2144073 2453958 2859952 2.19 2.17 2.17
INFERENCE: According to analysis the advances made by the bank were high in first two years in 2005 & 2006 i.e. 68.67, 429.26 and decline in 2006-07 i.e.2.07 and also increased in 2008 (85.85%).
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[Type text] On other hand current liabilities were increasing in first two years 2005&2006 i.e. 105.31 to 288.74 respectively and then it decline by 14.45 in 2006 and then it increased by 16.54% in the last year. By the table we can conclude that the credit to current liabilities & provisions ratio 1.36 times in the beginning and was 2.19 in 2005-06 and then declined 2.18 and remain stagnant in next year also that show there was no change in credit and current liabilities & provision. It is the good sign to the bank. FIGURE-9 Status of A dvances & CL & Provision
10000000 8000000 6000000 4000000 2000000 0 200304 200405 200506 Years
Adv ances C & prov L isions
Amount
200607
200708
FIGURE-10
Credit & Provision Ratio

2.5 2 1.5 1 0.5 0 2.19 1.27 2.17 2.17 2.18
Ratio
2003-04 2004-05
2005-06 2006-07 2007-08 Years Times
86
[Type text]
6. DEPOSIT CREDIT RATIO

= Deposit X 100 Credit (Advances)
TABLE-8 2003-04 Deposit 1637821 Credit (advances) 1842397 Credit ratio 88.90 INFERENCE: The advances by the bank was in increasing mode from 2003-04 (7908738 Lakhs) to 2007-08 (72907461 Lakhs) and the deposit to the bank were also increased form 2003-04 (1570690) to 2007-08 (3171019). The deposit credit ratio was low in 2005-06 (32.90) and ended of at 10.92% in 2007-08 but it was lower than the 2006-07 (36.82). Since the advances by the bank were lower than the deposit in 2007-08 which shows the fund have not been utilize properly. FIGURE-11 Years 2004-05 3208511 9751135 32.90 (In Lakhs) 2005-06 2006-07 2007-08 4816931 6,810,858 9,981,877 9952866 18,497,690 91,405,151 48.40 36.82 10.92
Status of Deposits & Credits

100000000 80000000 60000000 40000000 20000000 0 Deposit Credit (advances) Amount
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[Type text]
Figure-12
Credit ratio 100 80 60 4088.9 20 0 2003-04 Credit ratio 32.9 2004-05 48.4 36.82 10.92 2005-06 Years 2006-07 2007-08 Ratio
7. DEPOSIT CAPITAL RATIO

= Deposit Equity capital X 100
TABLE-9 Years Deposit Equity Capital Times INFERENCE: The equity capital of the bank was high in 2003-04 (7432.47%) and then there was a declaimed to 3331.68 in 2004 and then it is increasing gradually from 2004 to 2008 as 3331.68, 5003.77, 7047.65 and 9184.90 respectively. On the other hand the total deposit received was positive from 2004 to 2007 and later on it declined from 70.72% to 68.23% in 2008, which is not a good sign according to the analysis. 2003-04 1637821 22036 74.32 2004-05 3208511 96303 33.32 (In Lakhs) 2005-06 2006-07 2007-08 4816931 6,810,858 9981877 96266 96,640 108677 50.04 70.48 91.85
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[Type text] Deposit capital ratio started from 74.32% in 2004 then it was declaimed to 33.32% in 2005 and then it is gradually increasing from 33.32% to 91.85%. There was a low Deposit Capital Ratio of 5 years in 2004 to 2005 (33.32). By this ratio we can conclude that the bank has satisfactory growth in deposit comparable to capital. FIGURE-13 Status of Deposits & Equity
10000000 8000000
Ratio
Amount
6000000 4000000 2000000 0 2003-04 2004-05 Equity Capital 2005-06 2006-07 2007-08
Deposit
Years
FIGURE-14
Deposit to Capital Ratio
100 80 60 40 20 0 2003-04 2004-05 2005-06 2006-07 2007-08
91.85 74.32 50.04 33.32 70.48
Years Times
89
[Type text]
8. INVESTMENT TO DEPOSIT RATIO

= Investment + Balance with bank Deposits Table-10 (In lakhs) 2006-07 2007-08 4,274,286 5048735 503,559 63449 154,881 658507 29,586 30685 4962312 6,810,858 72.86 5801376 9981877 58.12 X 100
Years Investments Bal with RBI Bal with banks in India Bal with banks o/s India Investment + balance with bank Deposits Ratio in % INFERENCE:
2003-04 818686 113092 54284 3607 989669 1637821 60.43
2004-05 3589108 152857 281821 143852 4167638 3208511 129.89
2005-06 3546230 454967 81058 15484 4097739 4816931 85.07
RBI requires commercial banks to maintain CRR (Cash reserve ratio) and SLR (Statutory Liquidity Ratio) at the following rates i.e. 4.5% & 25% respectively. Therefore if 30% of the funds kept in investments that will satisfy the RBI requirements. Figure-15
Investment to Deposit Ratio

150 120 Ratio % 90 60 30 0 2003-04 Ratio in % 2004-05 2005-06 2006-07 2007-08
Years
90

S tatus o Investm &D o f ent ep sits
1 0 0 00 200 Amount 1 0 0 00 000 8000 000 6000 000 4000 000 2000 000 0 2 0 -0 03 4 20 5 0 4-0 2 0 -0 05 6 D p sits Ye o ears 2 0 -0 06 7 20 7 8 0 -0
In e e ts v stm n
9. DEPOSITS TO NETWORTH RATIO

= Deposit X 100 Net Worth TABLE-11 (In lakhs) Years Deposit Share holders fund Capital Reserves & Surplus Total Times INFERENCE: Deposit to the bank were also increased from 1637821 Lakhs (2003-04) to 9981877 Lakhs (2007-08) and shareholders fund has increased from the last five years and recorded the highest of 1289996Lakhs in 2007-08. The capital of the bank was also increasing 2003-04 to 2004-05 is respectively 22036 and 96303 then there was a negative growth of -0.04% in 2006 and then in 200607 and 2007-08 it was increased. 2003-04 1637821 2004-05 3208511 2005-06 4816931 96266 632065 728331 6.61 2006-07 6,810,858 2007-08 9981877
22036 96303 109226 563554 131262 659857 12.48 4.86
96,640 108677 739,416 1181319 836056 1289996 8.15 7.74
91
[Type text] Reserve and Surplus of the bank was increasing from 109226 Lakhs (2003-04) to 1181319 Lakhs (2007-08). The Deposit to Net worth Ratio as calculated from the table shows that there was increase in the beginning for 2003-04 but in 2003-04 it was decreased. Then it is increased in two years and last year is again declaimed. Figure-17
Deposits & Shareholders Fund

12000000 10000000
Amount
8000000 6000000 4000000 2000000 0 2003-04 2004-05 2005-06

Years
2006-07
2007-08
Deposit
Share holders fund / Capital
Figure-18
Deposits to Networth Ratio

14 12 10 8 6 4 2 0 2003-04 2004-05 2005-06 2006-07 2007-08 Times Years
Ratio
92
[Type text]
10.CASH BALANCE TO TOTAL DEPOSIT RATIO

= Cash balance X 100
Deposits
TABLE-12 (In Lakhs) Years Cash balance Total deposits % INFERENCE: According to the data, Cash balance from 2003-04 to 2007-08 is increasing year to year from 10074 to 47412.And the total deposit is also increase from 2003-04 to 2007-08 is from 1637821 to 9981877 respectively so by considering the increase (decrease) of both cash balance and total deposit received we can calculated the cash balance to total deposit ratio from 2003-04 to 2007-08 is 0.62, 0.77, 0.70, 0.55 and 0.47 respectively. In the year 2004 to 2005 the ratio was higher which indicates less efficiency that is 0.77 but in the year 2007 to 2008 the ratio has been decreased to 0.5 and 0.47, which indicates high efficiency. Efficiency increases with the decrease in cash balance to total deposit ratio. 2003-04 2004-05 2005-06 10074 24590 33647 1637821 3208511 4816931 0.62 0.77 0.70 2006-07 2007-08 37,241 47412 6,810,858 9981877 0.55 0.47
93
[Type text]
Figure-19
Status of Cash Balance & Deposits 10000000 8000000
Percentage
Amount
1 0.8 0.6 0.4 0.2 0
6000000 4000000 2000000 0 2003-04 2004-05 2005-06 2006-07 2007-08 Years
Cash balance
Total deposits
Figure-20
Cash Balance to total Deposit Ratio % 0.77 0.62 0.7 0.55 0.47
2003-04
2004-05
2005-06
2006-07
2007-08
Years
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[Type text]
GENERAL RATIOS 11.CURRENT RATIO

= Current Asset Current liabilities TABLE-13 Years Current assets a. Bill purchase & discounted b. Cash credits, o/d & loans 9.other Assets Total Current Assets Current liabilities Other liabilities A. Demand deposits B. Savings bank deposits Total Current Liabilities Times 2003-04 359,369 108,704 497,091 54,346 1,019,510 2004-05 1,278,635 165,412 240,251 415,828 2,100,126 2005-06 648,899 43,764 313,402 752,052 1,758,117 (In lakhs) 2006-07 2007-08 847,064 1,280,772 51,006 247,366 365,260 123,344 786,344 879,889 2,049,674 2,531,371
101,297 1,620,758 1,705,693 1,801,949 2,139,616 262,186 273,615 368,944 521,665 1,139,200 188,064 249,700 379,321 536,338 1,139,820 551,547 2,144,073 2,453,958 2,859,952 4,418,636 1.85 0.98 0.72 0.72 0.57
INFERENCE: The actual current ratio ascertained with the help of the relevant financial figures has to be compared with the ideal or standard ratio of 2:1 that means the current asset are fixed at two times the current liabilities the idea behind this fixation is to leave a margin of safety to cover any fall. In the value of current asset and also to leave sufficient working capital after the payment of current liabilities.
In this case of ICICI Bank the current asset from the past 5 years is increasing. But current liabilities were increasing by year to year considering current asset and current liabilities the current ratio calculated is in decreasing trend for the last 5 years and it was stagnant this year to 0.57.
95
[Type text] The current ratio falls bellow the current ideal ratio however the firm is not in a good position to meet its current obligations out of its current asset. Figure-21
Status of Current Assets & Liabilities

4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2003-04 2004-05 2005-06 2006-07 2007-08
Total Current Assets
Total Current Liabilities
Figure-22
Current Ratio
2 1.5 1 0.5 0 2003-04 2004-05 2005-06
Times
2006-07
2007-08
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[Type text]
12. RETURN ON INVESTMENT RATIO

= Profits X 100 Shareholders fund
TABLE-14 Years Profits Share holders fund Capital Reserves & Surplus Sub total PERCENTAGE INFERENCE: The term investment here refers to total assets or net assets. The conventional approach of calculating ROI is to divide profits by equity plus Reserve. Investment represents pool of funds supplied by shareholders and lenders. In banking profits represents the interest from the lenders while equity plus reserves are the net assets of the bank. It is the percentage of deposits lend as advances it reveals that if it is too high than it has a high risk involved in it and if it is too low then it has a low profitability involved in it. The above table show an increase in profits from 2004 to 2006 i.e. 52.99, 60.34 and 366.97 respectively. But in the year 2006-07 it decreased by 35.73% and again it is increased last year. On the other hand shareholders fund also shows an increasing trend from the year2003 to 2005 it sharply increased 14.99% to 402.70% and dipped down by 10.38, 14.79 in subsequent years. Total percentage increased in shareholders fund is 627.31%. Finally we can conclude from the calculations from the above table that for the first two years viz.2003-04 Return on Investment ratios is 12.27. For the year 2005 it 2003-04 16110 2004-05 25830 2005-06 120618 2006-07 163,711 2007-08 200520
22036 96303 109226 563554 131262 659857 12.27 3.91
96266 96,640 108677 632065 739,416 1181310 728331 836056 1289987 16.56 19.58 15.54
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[Type text] sharply decreased to 3.91%. Thus we can say that profitability is low for the
corresponding period. For the year 2006 & 2007 percentage of ratios increased from 16.56 to 19.58 respectively. And again last year it is decreased to 15.54 this shows high risk and high profitability. Figure-23
Status of Profit & Shareholders Fund

1400000 1200000 1000000 800000 600000 400000 200000 0
2003-04 2004-05 2005-06 2006-07 2007-08

Profits Total Shareholders Fund
Figure-24
R tu o In e tm n R tio e rn n v s e t a
25 20 15 10 5 0 2003-0 4 2004-05 2005-06 PR ET G E CNA E 2006-07 2007-08 16.56 12.27 3.91 19.58 15.54
13. OPERATING OVERHEADS TO TOTAL INCOME RATIO
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[Type text]
= Operating Expenses X 100
Total Income
TABLE-15 Years Operating exp. Total income % INFERENCE: The operating expenses calculated form the profit and loss account was initially high and latter on at the end of 2007-08 it was pretty low 32.81% which is a very good mark for the bank. At the same time the total income of the bank was good at the end of 2007-08 at (4.95) which shows the growth in the last year. By the above table the operating ratio which was fluctuating and started at 22.86% in 2003-04 and ended at 25.72% in 2007-08 with lot of fluctuation in between this figure. I.e. 25.72%, which was higher than the last year of 21.50% (2006-07), shows that the bank showed improve on its activities. 2003-04 33429 146214 22.86 2004-05 62258 272659 22.83 2005-06 201169 1252688 16.06 (In Lakhs) 2006-07 2007-08 257,123 329915 1,195,896 1282604 21.50 25.72
Figure-25
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[Type text]
Status of Operating Exp & Income

1400000 1200000 1000000 800000 600000 400000 200000 0
Percentage %
In lakhs
2003-04 2004-05 2005-06 2006-07 2007-08
Operating exp.
Total income
Figure-26
Operating Ratio
30 20 10 0 2003-04 2004-05 2005-06 2006-07 % 2007-08 22.86 22.83 16.06 21.5 25.72
100
[Type text]
14. OPERATING RESULTS RATIO

=Operating Income Operating exps. X 100 Shareholders fund
Table-16 (In Lakhs)

Years
Operating income Operating exp. Net Operating Income Share holders fund Capital Reserves & Surplus RATIO INFERENCE: The operating Income of the bank moved from 22,001 Lakhs in 2003-04 and ended it 341,614 Lakhs in 2007-08.Shareholders fund has increased form the last 5 years and recorded the highest of 2,268,094 Lakhs in 2007-08. 2003-04 22,001 33,429 -11,428 22,036 109,226 131,262 -8.71 2004-5 57,466 62,258 -4,792 96,303 563,554 659,857 -0.73 2005-06 315,883 201,169 114,714 96,266 632,065 728,331 15.75 2006-07 2007-08 306,492 341,614 257,123 329,915 49,369 11,699 96,640 1,086,775 739,416 1,181,319 836,056 2,268,094 5.90 0.52
From the table the operating result was negative -8.71% in 2003-04 and managed to end of with 0.52% in 2007-08. This was VERY lesser than the previous year 2006-07 (5.90%) by seeing this there was a drop of 80% from last year, which is not a good sign for the prosperous growth of bank.
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[Type text]
Figure-27
Status of Net Operating Income & Shareholders fund

2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 -500,000 2003-04 2004-5 2005-06 2006-07 2007-08
Percentage %
Amt in Lakhs
Net Operating Income
Share holders fund
Figure-28
Operating Ratio
20 15 10 5 0 -5 -10 2003-04 -8.71 -0.73 2004-5 2005-06 5.9 0.52 2006-07 2007-08 15.75
RATIO
102
[Type text]
15. INCOME TO ASSET RATIO

= Income X 100 Asset
TABLE-17 lacks)
Years Income Assets PERCENTAGE INFERENCE: 2003-04 146,214 1,973,659 7.41 2004-05 272,659 10,410,992 2.62 2005-06 1,252,688 10,681,197 11.73 2006-07 1,195,896 12,522,888 9.55
(In
2007-08 1,282,568 16,765,940 7.65
From the above table we can clearly that the income of the bank is increasing from 2003-04 to 2004-05 i.e. 186.48 To 459.43 but is was decrease in year 2005-06 to 95.47 and again increase to107.25 in 2006-07. By considering the above data the income to asset ratio calculated shows that the trend was declining from 2003-04 to 2004-05 from 7.41% to 2.62% and finally it ended at a lower as compare to previous year(9.55) to 7.65%.because assets are increase in more. This figure shows that the bank is in a good position. The following chart justifies the above inference.
103
Status of Income & Assets

18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2003-04 2004-05 2005-06 2006-07 2007-08
Amt in Lakhs
Income
Assets
Figure-30
Income to Asset Ratio

14 12 10 8 6 4 2 0 2003-04
Percentage %
2004-05
2005-06
2006-07
2007-08
PERCENTAGE
104
[Type text]
16. NET PROFIT RATIO

= Net Profit X 100 Total Income TABLE-18
(in lakhs)
Years 2003-04 2004-05 Net profit 16,110 25,830 Total income 146,214 272,659 RATIO 11.02 9.47
2005-06 120,618 1,252,688 9.63
2006-07 2007-08 163,711 200,520 1,195,896 1,282,604 13.69 15.63
INFERENCE: The net profit ratio indicates the quantum of profit available for the owners. A higher net profit ratio indicates that the profitability of the concern is good. On the other hand a low net profit ratio indicates that the profitability of the enterprise is poor. According to the table the net profit of ICICI Bank was remarkably good in all years but the total Income was good till 2006 at 359.43%. But it showed a negative growth in last year by (4.53). By considering this the net profit ratio calculating is 11.02, 9.47, 9.63 13.69 and 15.63 respectively for 2003-04 to 2007-08. The ratio was declined after 3 years but it made a come back in the 2004-2005 and was in a same increasing face and lastly made a record of 15.63 % which is the high net profit ratio and good to any business. The net profit should be capable for covering all the operating expenses and also should leave sufficient amount of profit to for the owners that has been fulfilled by the ICICI Bank performance.
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Status of Net profit & total Income

Amt in lakhs 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2003-04 2004-05 Net profit 2005-06 2006-07 2007-08
Total income
Figure-32
18 16 14 12 10 8 6 4 2 0
Net Profit Ratio

15.63 13.69 11.02 9.47 9.63
Percentage %
2003-04
2004-05
2005-06 RATIO
2006-07
2007-08
17. NET PROFIT TO NET ASSET RATIO
106
[Type text]
= Net Profit X 100 Net Asset TABLE-19 (In Lakhs) 2007-08 200,520 5,048,735 7,225,889 403,803 129,299 12,807,726 1.57
Years Net profit Net assets 6.Investments c. Term loans 8. Fixed Assets Net current assets Net assets % INFERENCE:
2003-04 16110
2004-05 25830
2005-06 120618
2006-07 163,711
818,686 3,589,108 97,350 4,297,824 38,113 423,934 467,963 -43,947 1,422,112 8,266,919 1.13 0.31
3,546,230 4,274,286 4,970,776 5,793,286 406,074 405,641 -695,841 -810,278 8,227,239 9,662,935 1.47 1.69
Net profit from the analysis part shows that it was a very good path for the bank from 2003-04 (16110) to 2007-08 (200,520) which has increased. The net asset of ICICI Bank was 1,422,112 in 2003-04 and increased to 12,807,726 in 2007-08, which shows healthiness to the bank. The profitability ratio from the table was shows that it was very low 0.31% in 2004-05 and managed to 1.69% in 2006-07 and then it was decreased to 1.57 in 2007-08 because it has this year current assets 129,299 previous years it was negative.
Figure-33
107
[Type text]
Status of Net Profit & Net Assets

14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 2003-04 2004-05 2005-06 2006-07 2007-08
Net profit
Net assets
Figure-34
Net profit to Net asset Ratio

2
Percentage %
1.5 1 0.5
1.13 0.31
2004-05
1.47
1.69
1.57
0 2003-04
2005-06
2006-07
2007-08
FINDINGS
108
[Type text]
Average Cost of Fund Employed Ratio is showing an upward trend due to increase in Total Interest payment and competition in 2003-04. It is 5.11 % and increase to 65.83 % in 2006-07, which drastically affect the companies profit margin.
The ICICI Bank is focusing on full utilization of the available sources without keeping any assets idle. The deposits of the bank are raised over the year and the advance also moving upward. The bank use deposits as well as other financial sources to provide for advances. So as to earn maximum profit these by contributing to the value of the company.
Investment to Deposit Ratio is also increasing tendency. It increases from 51.50% (2003-04) to 72.86% (2006-07). Such investments are less risky than the usual advances paid by the bank, but it brings low returns.
Cash Balance to Total Deposit Ratio is raising tendency. It increases from 0.32% to 0.55%. The increased cash balance will provide liquidity but Lowers Companys profitability as such cash balance kept idle which earn nothing.
Income to Asset Ratio is moving upward, this reflects the banks effective use of resources to contribute more towards profit and there by increase the value of shareholders.
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[Type text] Current Ratio is decreasing tendency. It decreases from 2.63% to 0.72%. The bank is following the aggressive financial policy by keeping its working capital low and even negative. It took a huge risk of short-term solvency, which is unfair to the operation of the company even though it brings high return.
The Return on Investment Ratio has enlarged by 155.45% in last 5 Years, which reflects companys effectiveness in using its funds. The Earning Capacity of the bank is increased over the years after a set back in the year 2004-05 bank moving upward by contributing more on profit. The bank is keeping the Cash Reserve Ratio at a higher than the minimum required rate with RBI, which bring a low return than other advances.
The bank is investing more on fixed assets of appreciating nature. The total assets of the company is enhancing which raised from 38,113 lakes in 2003-04 to reach up to 403,803 lakes in 2007-08.
CONCLUSION
110
[Type text] Various ratios have been analyzed and this helps to know credit analyses of the bank. The bank has been providing various useful services to the society through its favorable programs, procedures and policies. The result of which is satisfactory solvency position increased operational expenses and increasing trend of profitability. The bank has made favorable progress in all fields viz, Deposits, Loans, Investments, Profits etc and all staff members actively Support and coordinate the activities. To conclude, it can be stated that the bank is bound to have very prosperous years to come in the future. The over all performance of ICICI Bank is satisfactory, company utilizes its available funds effectively. The aggressiveness shown by the bank in its financial operations helped it to maximize its earnings.
SUGGESTIONS
111
[Type text] Bank has to take steps to cut down its cost of fund employed, which is showing sharp fluctuations over the years necessary actions to be taken to cut down the operating expenses which is increasing. Bank has to implement few new strategies to enlarge its turnovers, which are showing a slow raise after 2004-05. The short-term solvency position of the bank is under threat; Bank has to keep some liquid assets to strengthen its liquidity position. The negative current ratio must be brought nearly to the standards. Bank has to provide effective services to customers for maintaining and building the brand image that helps the banks to have a competitive edge even other banks. Business expansion is needed; the bank can enter into the wide rural market where it has wide scope for business. Bank can enter into the rural market by opening branches and ATM facility in Taluk head quarters, as there is lack of ATM facilities in most of Taluk head quarters. The portion of accrued interest in total current asset is increasing drastically. It is suggested to accelerate the interest collection process and then advance the same so as to increase the profitability.
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[Type text]
ANNEXURE
BALANCE SHEET
(Rs crore)
(Rs crore) Mar ' 08 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions 31,129.77 42,895.38 23,551.85 38,228.64 15,642.79 25,227.88 11,115.99 21,396.16 9,107.61 18,019.49 7,036.00 2,927.11 4,108.90 1,11,454.3 4 6,298.56 2,375.14 3,923.42 189.66 91,257.84 5,968.57 1,987.85 3,980.71 147.94 71,547.39 5,525.65 1,487.61 4,038.04 96.30 50,487.35 5,090.20 1,033.79 4,056.41 93.99 42,742.86 2,44,431.0 5 2,91,251.26 2,30,510.1 9 2,55,173.45 1,65,083.1 7 1,87,639.16 99,818.78 1,12,718.75 68,108.58 76,469.14 1,112.68 350.00 45,357.53 899.34 350.00 23,413.92 889.83 350.00 21,316.16 736.75 0.02 350.00 11,813.20 616.40 350.00 7,394.16 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
113
[Type text]
Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 4,01,114.9 1 11126.87 1,99,771.4 1 8992.67 1,34,920.9 9 8898.24 1,07,311.4 6 7367.16 82,116.13 6130.21 -11,765.62 1,03,797.62 -14,676.78 80,694.15 -9,585.09 66,090.96 -10,280.17 44,341.52 -8,911.89 37,981.38
114
[Type text] PROFIT LOSS ACCOUNT

(Rs crore) Mar ' 08 Income: Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 4.49 0.31 17.55 22.35 28.05 0.55 28.60 84.92 4.51 0.60 23.50 16.51 16.52 11.73 4.78 2,078.90 1,750.60 6,447.32 10,276.82 5,706.85 65.58 5,772.43 23,484.24 578.35 5,194.08 1,611.73 4,092.12 65.61 4,157.73 5,156.00 1,227.70 149.67 3,778.63 1,616.75 1,741.63 4,946.69 8,305.07 3,793.56 309.17 4,102.73 16,358.50 544.78 3,557.95 984.25 2,995.00 115.22 3,110.22 3,403.66 901.17 153.10 2,349.39 1,082.29 840.98 2,727.18 4,650.45 3,269.94 466.02 3,735.96 9,597.45 623.79 3,112.17 556.53 2,532.95 7.12 2,540.07 2,728.30 759.33 106.50 1,862.46 737.41 601.71 1,248.31 2,587.43 2,679.78 448.46 3,128.25 6,570.89 590.36 2,537.88 522.00 2,007.28 -2.08 2,005.20 2,058.29 632.96 90.10 1,335.22 135.31 39,467.92 28,457.13 17,517.83 11,838.10 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
115
[Type text]
BIBLIOGRAPHY
BOOKS Financial management by Prasanna Chandra Financial management by I M Pandey Corporate finance
MAGAZINES Banker Financial risk
WEBSITES www.icici.com www.google.com
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[Type text] CONTAINS

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LIST OF CHARTS & FIGUR

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Figure 28 Figure 29 Figure 30 Figure 31 Figure 32 Figure 33 Figure 34

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[Type text] LIST OF TABLES

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Finance functions: There are four important finance functions:

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Meaning of Financial Statements:

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Nature of Financial Statements:

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Meaning of Analysis of Financial Statements:

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Objectives of Financial Analysis:

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Types of Financial Statements analysis:

FINANCIAL PERFORMANCE OF ICICI BANK LIMITED.

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2. INTRODUCTION 2. 1) INDUSTRY PROFILE

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STRUCTURE OF BANKING SYSTEM IN INDIA

2.2) COMPANY PROFILE 2.2. 1.HISTORY OF ICICI BANK

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CREDIT RATINGS OF ICICI

2. 2.2. ORIGIN PROFILE

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DIVERSIFICATION OF ICICI BANK LTD Chart-2

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Chart-3 THE DIFFERENT LOGOS OF ICICI

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27.3 45.2 15.7 6.6 3.9 1.4

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To carry on activities of bill discounting, rediscounting bills, factoring, dealing in

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2.3. PRODUCT/ SERVICES PROFILE

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Value Added benefits include:

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BANK @ CAMPUS OR STUDENT BANKING SERVICES

ICICI BANK SALARY ACCOUNT

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