Industrial credit and

investment corporation
of India
 Agenda
History & Services

ICICI Bank today

Financial Analysis

Technical Analysis

Conclusion

2
 History

 INCORPORATED IN 1994.
 FIRST INDIAN COMPANY TO RAISE FUNDS
FROM INTERNATIONAL MARKETS
 2ND LARGEST BANK IN INDIA
 NETWORK OF 1308 BRANCHES
 3950 ATMS
 SUBSIDIARIES IN UK, RUSSIA, CANADA,
SINGAPORE etc
 Launched private banking in 2002.

3
 Services

 Wide variety of deposit products such as

internet and mobile banking.
 Credit and debit cards.
 Demat accounts , homeloans,carloans
etc.
 Travel cards with US dollars , euro ,
pound etc.

4
 Contents
History & Services

ICICI Bank today

Financial Analysis

Technical Analysis

Conclusion

5
 ICICI Bank today
 Large capital base
India’s
India’s largest
largest
private
private sector
sector
 Vast talent pool
bank
bank and
and one
one
stop
stop financial
financial
 Low operating costs solutions
solutions
provider
provider with
with aa
diversified
diversified and
and
 Technology focus de-risked
de-risked
business
business
model
model
 Strong corporate
relationships

6
 ICICI Bank today (contd.)
 Diversified portfolio
March 2001- Proforma March 2002- Merged
merged
7%
5% 23%
33% Pro jec t financ e
Co rpo rate financ e
Retail financ e
Reserves & c ash
12%
Investments
4% Other assets 23%
34%
12% 36%
3% 8%

Rs. 931.50 billion Rs. 1,041.10 billion

… the asset composition change on account of
statutory requirements and increase in retail
assets is contributing to de-risking the portfolio
7
 ICICI Bank today (contd.)

 De-risked portfolio
 Capital adequacy ratio of 11.44%
 Net NPA ratio of 4.7%
 Fair valuation adjustment of Rs. 37.80
billion
(Rs. in billion)
Gross book Existing Fair value Total Coverage
value provision provision provision
Non-performing 69.18 34.66 9.02 43.68 63.1%
loans
Other loans 476.36 2.19 19.53 21.72 4.5%
Mark-to-market of investments 9.25
Total fair valuation adjustment 37.80

8
 ICICI Bank today
(contd.)

ICICI Bank is well

positioned to
redefine the
banking model by
focussing on the
Retail banking untapped
potential in the
profitable retail
Corporate banking business
segments and
leveraging its
superior delivery
Structured finance capabilities and
lower operating
costs in the
under-served
9 corporate
 Contents
History & Services

ICICI Bank today

Financial Analysis

Technical Analysis

Conclusion

10
 Financial Analysis

The SWOT Analysis enables a company to

recognize its market standing and adopt strategies
accordingly. Here SWOT analysis of ICICI bank is
made to understand the positioning of the bank
better:

11
 Financial Analysis(contd.)

12
 Financial Analysis(contd.)

13
 Financial Analysis(contd.)

 Dissatisfied
Customers
 Ever improving
nationalized banks
 Advent of MNC
banks

14
 Financial Analysis(contd.)

 EPS is one of the most important ratios to measure the net

profit earn per share. Steady growth of EPS is indicating a
good profitability. Earning per share of ICICI Bank are
having a constant growth. EPS is one of the major reasons
to attract huge investors.

15
 Financial Analysis(contd.)

 EPS of ICICI is not higher than the peer group. Bt EPS should not be one
parameter to measure of the bank. Because outstanding will be one reason
i.e. different bank outstanding share is different. Bt it is one of the main
parameter to be considered by investor.

16
 Financial Analysis(contd.)

 The P/E ratio reflects the price currently being paid by the market for each
rupee of currently reported EPS. In other words, the P/E ratio measures
investor’s expectations and the market appraisal of the performance of the firm.
P/E ratio is fluctuate time to time because market price on of the reason. P/E
ratio of ICICI Bank is the highest compared with its peer group. The main reason
for higher P/E ratio is HIGHER SHARE PRICE & LOW EPS.

17
 Contents
History & Services

ICICI Bank today

Financial Analysis

Technical Analysis

Conclusion

18
 Technical Analysis
 Technical analysis is based on the economic
premise that forces of demand & supply
determine the pattern of market price and the
volume of trading in share. The greater is the
demand for a company’s share, the higher is
the market price. The greater the supply of a
company’s shares in the market, the lower the
market price. Technical analysis hopes to
capture a price trend from the previous traded
prices and uses this trend to make an
investment decision
The most commonly used charts are:
 Line Charts
 Bar Charts
 Point and Figure Charts
 Candle Stick Charts

19
 Technical Analysis(contd.)

 Trend Analysis: In the down trend we can observe that the price of
the share can be fall down continuously. In the sideway trend we
can observe that the price of the share can move in up and downs
with a small changes in the price for a particular period. In the
uptrend we can observe that the price of the share can be bullish
way or in move up continuously for a particular period.

20
 Technical Analysis(contd.)

 From above graphs, blue line represent ICICI bank share price and res line
represent 50 and 100 days moving Average. We found when trend line cuts the
ICICI bank share price line there is reverse trend

21
 Technical Analysis(contd.)
 Correlation & Beta calculations of ICICI Bank & S&P
CNX NIFTY
 For calculation of correlation & Beta, we took data
from 1jan 2009 to 30july of 2010.

∑XY1300.584403
∑X2 1326.382466
N 387
∑X 63.53563259
∑Y 91.10463083
β 0.9769564
CORELATION 0.5345049

22
 Technical Analysis(contd.)
 Beta value describes the relationship between the stock
return and market index return i.e. Beta is a measure of a
stock’s volatility in relation to the market.
 In case of ICICI Bank we found there is beta of .9769 with
NIFTY, which almost 1 mean it volatile same with NIFTY.

if there is a 10% increase in nifty then

α 0.075020891
β 0.172716536
if there is 10% return on nifty then icici has 17.2%

 Correlation between ICICI Bank and NIFTY is Positive and

moving in same direction with 0.5346 approx.

23
 Contents
History & Services

ICICI Bank today

Financial Analysis

Technical Analysis

Conclusion

24
 Conclusion

 Fundamental analysis of ICICI Bank reflects

ICICI bank is the largest bank in private
sector, growth rate of ICICI Bank is very high
comparing to whole Banking industry.
 Price earnings ratio ICICI Bank out
performance the whole industry.
 At present ICICI Bank has 2463 branches
which makes ICICI bank as the strongest
network in India after State bank of India.
 Fundamental Analysis strongly finds a huge
growth in ICICI bank.

25
 Conclusion(contd.)

 Technical analysis of ICICI

bank share say it has a
positive correlation with
NIFTY.
 We found there is UP
TREND in the stock from
Sep 2008 and it has a able
to continue its trend
because of huge growth in
Banking industry and its
Outstanding innovative
products.

26
 Conclusion(contd.)

From Fundamental & Technical analysis,

We
Recommend buying of ICICI BANK share
and if
already purchased then hold for a while.

Target price 1200

27
 Profit & loss statement1
(Rs. in billion)
Q4- Q4- Inc
FY01 FY02
FY01 FY02 %
Interest income 3.69 6.77 12.42 21.52 73.3
Interest expense 2.44 5.33 8.38 15.59 86.0
Net interest income 1.25 1.44 4.04 5.93 46.8
Non-interest income 1.00 1.77 2.20 5.75 161.4
- Core fee income 0.61 0.99 1.71 2.83 65.5
- Trading gains 0.39 0.78 0.49 2.92 495.9
Operating expenses 1.22 1.84 3.34 6.23 86.5
Operating profit 1.03 1.37 2.90 5.45 87.9
k na BI CI CI

Prov. &contingencies 0.53 0.80 1.29 2.87 122.5

Profit after tax 0.50 0.57 1.61 2.58 60.2

1. Includes operations of ICICI, ICICI PFS and ICICI Caps from the Appointed
Date i.e., Mar 30, 2002.

28
 Balance sheet: Assets
(Rs. in billion)
FY02 FY02
FY01
Standalone Merged
Cash, balances with 77.06 286.14 357.64
banks &SLR
- Cash &balances 35.94 86.48 129.71
with RBI &banks
- SLR investments 41.12 199.66 227.93
Advances 70.31 48.32 470.35
Debentures &bonds 30.70 28.25 75.41
Other investments 10.05 4.62 55.58
Fixed assets 3.84 4.35 42.39
k na BI CI CI

Other assets 5.40 10.06 39.73

Total assets 197.36 381.74 1,041.10

29
 Balance sheet: Liabilities
(Rs. in billion)
FY02 FY02
FY01
Standalone Merged
Net worth 13.13 15.45 62.49
- Equity capital 2.20 2.20 6.13
- Reserves 10.93 13.25 56.36
Preference capital - - 3.50
Deposits 163.78 325.13 320.85
- Savings deposits 18.81 24.97 24.97
- Current deposits 26.22 29.57 27.36
- Term deposits 118.75 270.59 268.52
k na BI CI CI

Borrowings 12.00 28.90 589.70

Of which: Sub-debt 1.68 3.95 97.51
Other liabilities 8.45 12.26 64.56
Total liabilities 197.36 381.74 1,041.10

30
 Thank You

31