A Project ON "A Study On Financial Statement Analysis of Icici Bank"
A Project ON "A Study On Financial Statement Analysis of Icici Bank"
PROJECT
ON
ICICI BANK”
SUBMITTED BY
PREETI TIWARI
ROLL NO 95
PRASANNA CHOUDHARI.
SUBMITTED TO
UNIVERSITY OF MUMBAI
RAJASHTHANI SAMMELAN’S
MCOM-II (ACCOUNTANCY)
A.Y.2018-19
RAJASTHANI SAMMELAN’S
CERTIFICATE
This to certify that Ms. PREETI TIWARI has worked and duly completed her Project work for
the degree of Master in Commerce under the faculty of commerce in the subject of Accounting
and her project is entitled,” A study on FINANCIAL STATEMENT ANLAYSIS OF ICICI
BANK” under my supervision.
I further certify that the entire work has been done by the learner under my guidence and that no
part of it has been submitted previously for any Degree or Diploma of any University. It is her
own work and facts reported by her personal findings and investigation.
Date: -
Declaration
I the undersigned miss PREETI TIWARI here by, declare that the work embodied in this project
work titled “A study on Financial statement analysis of ICICI BANK”, forms my own
contribution to the research work carried out under the guidance of MR. PRASANNA
CHOUDHARI is a result of my own research has not been previously submitted to any Degree
or Diploma of any University.Whenever reference has been made to previous works of others, it
has been obtained and presented in accordance with academic rules and ethical conduct.
Signature
Certified by
To list who all have helped me is difficult because they are so numerous and the depth is
so enormous.
I would like to acknowledge the following as being idealistic channels and first
dimensions in the completion of the project.
I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.
I would like to thank my Principal , BHAVNA VAIDYA for providing the necessary
facilities required for completion of this project.
I would like to thank my COLLEGE LIBRARY, for having provided various reference
books and magazines related to my project.
Special thanks to CA Ketan Jatania for his time and support for guiding me in analysis
and interpretation of financial statements of Sameul Pharmaceuticals Private Limited.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and peers who supported
me throughout my project.
EXECUTIVE SUMMARY
project was project was undertaken at Tata Motors This project aimed at A STUDY
real life business environment and to have an insight into the management
intricacies, thus helping learning to be more purpose full and meaning full.
TABLE OF CONTENT
1. Certificate
2. Declaration
3. Acknowledgement
4. Executive summary
5. Introduction 1-14
6. Company Profile 15-54
7. Research Methodology Along with Objectives 55-58
8. Use and Importance 59-60
9. Data Analysis 61-82
10. Findings 83-86
11. Suggestions 87-89
12. Conclusion 90-91
13. Limitations 92-93
14. Bibliography 94-95
15. Annexure 96-101
INDEX
Chapter. No. Particulars Pg No.
1. Introduction
1.1 Introduction 1
1.2 Existing Indirect Tax Structure in India 2
1.3 Understanding CGST, SGST, UTGST and IGST 3
1.4 GST Council - Constitution 3
1.5 Origin 3
1.6 Background 4
1.7 An Integrated Regime – Birth of an Idea 4
1.8 Significance of Goods and Services Tax 5
1.9 Impact of Goods and Services Tax 5
1.10 GST and Its Operation 8
1.11 GST Model 8
1.12 Overview of the Discussion Paper on GST 14
1.13 Details Related to Filing Returns of GST 17
1.14 Desirable Features of GSTN – An Infrastructure for GST 34
1.15 Stakeholder 35
1.16 Workflow 36
1.17 Challenges in Implementation 37
1.18 Striking Balance 39
1.19 Mission Mode Project on Commercial Taxes 40
2. Research Methodology
2.1 Region of Research 42
2.2 Objectives of the Study 42
2.3 Hypothesis 43
2.4 Scope of the Study 44
2.5 Limitations of the Study 45
2.6 Tools for Data Collection 46
3. Literature Review
3.1 Review of Authors on Goods and Services Tax 48
3.2 GST in India: A Critical Review 54
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4 Company Profile
Case Study on E-Taxexpert Solutions Private Limited 59
4.1 Introduction 59
4.2 Business of the Company 59
62
6. 75
Conclusion & Suggestion
7. 78
Bibliography
8. 79
Appendix – I – Questionnaire
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INTRODUCTION
OF BANKING
Page 3
end of accounting period. The team financial statement includes at least two statements
which the accountant prepares at the end of an accounting period. The two statements
are: -
They provide some extremely useful information to the extent that balance Sheet mirrors
the financial position on a particular date in terms of the structure of assets, liabilities and
owners equity, and so on and the Profit And Loss account shows the results of operations
during a certain period of time in terms of the revenues obtained and the cost incurred
during the year. Thus the financial statement provides a summarized view of financial
positions and operations of a firm.
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o To classify the items contained in the financial statement in convenient and
rational groups.
The analyst should acquaint himself with principles and postulated of accounting.
He should know the plans and policies of the management so that he may be able
to find out whether these plans are properly executed or not.
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The extent of analysis should be determined so that the sphere of work may be
decided. If the aim is find out. Earning capacity of the enterprise then analysis of
income statement will be undertaken. On the other hand, if financial position is to
be studied then balance sheet analysis will be necessary.
A relationship is established among financial statements with the help of tools &
techniques of analysis such as ratios, trends, common size, fund flow etc.
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b) Vertical Analysis : This is used when financial statements of a particular year
or on a particular date are analyzed. For this type of analysis we generally use
common size statements and the ratio analysis. It involves a study of quantitative
relationship among various items of balance sheet and profit and loss account.
This type of analysis is static analysis because this is based on the financial results
of one year. Vertical analysis is useful when we have to compare the performance
of different departments of the same company.
Among these two types of analysis, horizontal analysis is more useful because it
brings out more clearly the trends of working of a firm. This gives us more concrete
bases for future planning.
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b) Intra -Firm Analysis: intra-firm analysis is concerned with the analysis of
financial performance of different units or departments or segments of the same
enterprise or company. Similarly when financial statements of two or more years
of the same firm are analyzed and compared it is also called as intra-firm analysis.
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g. Break even point analysis
When financial statements figures for two or mote years are placed side-side to facilitate
comparison, these are called ‘comparative Financial Statements’. Such statements not
only show the absolute figures of various years but also provide for columns to indicate
to increase ort decrease in these figures from one year to another. In addition, these
statements may also show the change from one year to another on percentage form. Such
cooperative statements are of great value in forming the opinion regarding the progress of
the enterprise.
1. To simplify data
2. To make inter period/inter-firm comparison
3. To indicate the trends
4. To enable forecasting
5. To indicate the strengths and weaknesses of the firm
6. To compare the performance
7. To analyses expenses
8. To analyses profits
Comparative financial statement is a tool of financial analysis that depicts change in each
item of the financial statement in both absolute amount and percentage term, taking the
item in preceding accounting period as base.
Comparison and analysis of financial statements may be carried out using the following
tools:
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1.Comparative Balance Sheet : The comparative balance sheet shows increase and
decrease in absolute terms as well as percentages ,in various assets ,liabilities and capital.
A comparative analysis of balance sheets of two periods provides information regarding
progress of the business firm.
The main purpose of comparative balance sheet is to measure the short- term and
longterm solvency position of the business.
1. Presenting the change in various items in relation to total assets or total liabilities
or net sales.
2. Establishing a relationship.
3. Providing a common base for comparison.
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Types of common size statements
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analyzed vertically. One can draw conclusion, regarding the behaviour of
expenses over period of time by examining these percentages.
c. Trend Analysis:
Trend percentage are very useful is making comparative study of the financial statements
for a number of years. These indicate the direction of movement over a long tine and help
an analyst of financial statements to form an opinion as to whether favorable or
unfavorable tendencies have developed. This helps in future forecasts of various items.
For calculating trend percentages any year may be taken as the ‘base year’. Each item of
base year is assumed to be equal to 100 and on that basis the percentage of item of each
year calculated.
d. Ratio Analysis:
Meaning: Absolute figures expressed in financial statements by themselves are
meaningfulness. These figures often do not convey much meaning unless expressed in
relation to other figures. Thus, it can be say that the relationship between two figures,
expressed in arithmetical terms is called a ratio.
TYPES OF RATIOS
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OBJECTS AND ADVANTAGES OR USES OF RATIO ANALYSIS
CLASSIFICATION OF RATIOS
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Liquidity Ratios : These are the ratios which measure the short-term solvency or
financial position of a firm. These ratios are calculated to comment upon the short-term
paying capacity of a concern or the firm’s ability to meet its current obligations.
Activity Ratios: Activity ratios are calculated to measure the efficiency with which
the resource of a firm have been employed. These ratios are also called turnover ratios
because they indicate the speed with which assets are being turned over into sales e.g.
debtors turnover ratio.
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-Current Ratio Financial Inventory Turnover In Relation to
-Liquid Ratio Operating Ratio. Sales.
(Acid) Test or Composite Debtors Turnover Gross Profit Ratio.
Quick Ratio. -Debt. Equity Ratio Operating Ratio.
-Absolute liquid or Ratio Fixed Assets Operating Profit
-Cash Ratio. -Debt to Total Turnover Ratio Ratio.
-Debtors Capital Ratio Total Asset Net Profit Ratio.
Turnover Ratio -Interest Turnover Ratio Expenses Ratio In
-Creditors Turnover Coverage Ratio Working Capital relation to
Ratio -Capital Gearing Turnover Ratio. investments
-Inventory Turnover Ratio Payables Return on
ratio
Turnover Investments.
Ratio Return on capital.
Capital Employed Return on Equity
Turnover Ratio Capital.
Return on total
Resources
Earning per share.
Price Earning Ratio.
CASH-FLOW STATEMENT
A cash – flow statement is a statement showing inflows (receipts) and Outflows
(payments) of cash during a particular period. In other words, it is a Summary of sources
and applications of each during a particular span of time.
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4. Study of the Trend of Cash Receipts and Payments.
5. It explains the Deviations of Cash from Earnings.
6. Helpful in Ascertaining Cash Flow from various Separately.
7. Helpful in Making Dividend Decisions.
Type Private
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BSE & NSE:ICICI,
NYSE: IBN
COMPANY’S
PROFILE
Industry Banking
Insurance
Capital Markets and allied industries
K.V. Kamath,Chairman
Chanda Kochhar, Managing Director & CEO
Sandeep Bakhshi, Deputy Managing Director
Key people N.S. Kannan, Executive Director & CFO
K. Ramkumar, Executive Director
Sonjoy Chatterjee, Executive Director
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Website www.icicibank.com
History of ICICI
1955: The Industrial Credit and Investment Corporation of India Limited (ICICI)
was incorporated at the initiative of World Bank, the Government of India and
ICICI Limited. ICICI emerges as the major source of foreign currency loans to
Indian industry. Besides funding from the World Bank and other multi-lateral
agencies, ICICI was also among the first Indian companies to raise funds from
international markets.
1961 : The first West German loan of DM 5 million from Kredianstalt obtained.
1967 : ICICI made its first debenture issue for Rs.6 crore, which was
oversubscribed.
1969 : The first two regional offices in Calcutta and Madras set up.
1972 : The second entity in India to set up merchant banking services. : Mr. H. T.
1985 : Mr. N.Vaghul appointed the seventh Chairman and Managing Director of
ICICI.
1986 : ICICI became the first Indian institution to receive ADB Loans. : ICICI,
along with UTI, set up Credit Rating Information Services of India Limited,
India's first professional credit rating agency. : ICICI promotes Shipping Credit
and Investment Company of India Limited. : The Corporation made a public issue
of Swiss Franc 75 million in Switzerland, the first public issue by any Indian
1987 : ICICI signed a loan agreement for Sterling Pound 10 million with
1993 : ICICI Securities and Finance Company Limited in joint venture with J. P.
Corporation was renamed as 'ICICI Bank Limited'. ICICI founded a separate legal
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entity, ICICI Bank, to undertake normal banking operations - taking deposits,
1996 : ICICI Ltd became the first company in the Indian financial sector to raise
GDR. : SCICI merged with ICICI Ltd. : Mr. K.V.Kamath appointed the
1997 : ICICI Ltd was the first intermediary to move away from single prime rate
to three-tier prime rates structure and introduced yield-curve based pricing. : The
name The Industrial Credit and Investment Corporation of India Ltd changed to
ICICI Ltd. : ICICI Ltd announced the takeover of ITC Classic Finance.
1998 : Introduced the new logo symbolizing a common corporate identity for the
1999 : ICICI launched retail finance - car loans, house loans and loans for
consumer durables. : ICICI becomes the first Indian Company to list on the
2000 : ICICI Bank became the first commercial bank from India to list its stock
on NYSE.
2001: ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar
bank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank
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
2002 : The merger was approved by shareholders of ICICI and ICICI Bank in
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January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by
the High Court of Judicature at Mumbai and the Reserve Bank of India in April
2002. Consequent to the merger, the ICICI group's financing and banking
Operations, both wholesale and retail, have been integrated in a single entity. At
the same time, ICICI started its international expansion by opening representative
offices in New York and London. In India, ICICI Bank bought the Shimla and
Darjeeling branches that Standard Chartered Bank had inherited when it acquired
Grindlays Bank.
ICICI Bank announced the setting up of its first ever offshore branch in
Singapore. ; The first offshore banking unit (OBU) at Seepz Special Economic
launched. ; India’s first ever "Visa Mini Credit Card", a 43% smaller credit card
Holdings acquired 5.2% stake in ICICI Bank. ; ICICI Bank became the market
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2004 : Max Money, a home loan product that offers the dual benefit of higher
multibranded credit card with HPCL and Airtel launched. : Kisan Loan Card and
innovative, low-cost ATMs in rural India launched. : ICICI Bank and CNBC TV
Enterprises to the growth of Indian economy. : ICICI Bank opened its 500th
branch in India. : ICICI Bank introduced partnership model wherein ICICI Bank
would forge an alliance with existing micro finance institutions (MFIs). The MFI
would undertake the promotional role of identifying, training and promoting the
micro-finance clients and ICICI Bank would finance the clients directly on the
recommendation of the MFI. : ICICI Bank introduced 8-8 Banking wherein all
the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday
to Saturday. : ICICI Bank introduced the concept of floating rate for home loans
tap the extensive trade between that country, India and South Africa.
2010 : First rural branch and ATM launched in Uttar Pradesh at Delpandarwa,
Hardoi. ; "Free for Life" credit cards launched wherein annual fees of all ICICI
Bank Credit Cards were waived off. ; ICICI Bank and Visa jointly launched
Masters 2010, a nationwide Golf tournament for high networth clients of the
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private banking division launched. This event is the largest domestic invitation
simultaneous equity offering of $1.8 billion in India, the United States and Japan.
US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a
branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI
Kong.ICICI Bank became the largest bank in India in terms of its market
capitalization. ; ICICI Bank became the first private entity in India to offer a
2011 : ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual
Introduced a new product - ‘NRI smart save Deposits’ – a unique fixed deposit
Belgium ; ICICI Bank became the largest retail player in the market to introduce
the field. A low-cost solution, this became an effective delivery option for ICICI
launched. Disha provides free credit counseling, financial planning and debt
Andhra Pradesh.
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2012 : ICICI Bank‘s USD 2 billion 3-tranche international bond offering was the
which was headquartered in Sangli, in Maharashtra State, and which had 158
branches in Maharashtra and another 31 in Karnataka State. Sangli Bank had been
founded in 1916 and was particularly strong in rural areas. With respect to the
Qatar to open a branch in Doha. Also, ICICI Bank Eurasia opened a second
branch, this time in St. Petersburg. ; ICICI Bank raised Rs 20,000 crore (approx
public offer. ; ICICI Bank’s GBP 350 million international bond offering marked
the inaugural deal in the sterling market from an Indian issuer and also the largest
deal in the sterling market from Asia. ; Launched India’s first ever jewellery card
in association with jewelry major Gitanjali Group. ; ICICI Bank became the first
bank in India to launch a premium credit card -- The Visa Signature Credit Card. ;
SME Toolkit, an online resource centre, to help small and medium enterprises
start, finance and grow their business. ; ICICI Bank signed a multi-tranche dual
currency US$ 1.5 billion syndication loan agreement in Singapore. ; ICICI Bank
became the first private bank in India to offer both floating and fixed rate on car
equipment loans. ; In a first of its kind, nation wide initiative to attract bright
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"Probationary Officer Programme". ;Launched Bank@home services for all
savings and current a/c customers residing in India ; ICICI Bank Eurasia LLC
2013 : ICICI Bank enters US The US Federal Reserve permitted ICICI to convert
its representative office in New York into a branch.; ICICI Bank enters Germany,
opens its first branch in Frankfurt ; ICICI Bank launched iMobile, a breakthrough
innovation in banking where practically all internet banking transactions can now
be simply done on mobile phones. ; ICICI Bank concluded India's largest ever
different asset categories. It is also the largest deal in Asia (ex-Japan) in 2013 till
date and the second largest deal in Asia (ex-Japan & Australia) since the
Service - along with DISHTV, which will allow viewers to see information about
the Bank's products and services and contact details on their DISHTV screens. ;
ICICI Bank and British Airways launch co-branded credit card, which is designed
to earn accelerated reward points to the card holders with every British Airways
and Ms Chanda Kochhar as Managing Director & CEO effective May 1, 2014,
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his term on April 30, 2014 ; ICICI bank ties up with BSNL Cell One for bill
payments, it will facilitate bill payment for BSNL Cell One users through
acting through its Hong Kong Branch (ICICI Bank) signed an agreement on
Export Credit Line totaling up to US$100 million with the Japan Bank for
Japan Finance Corporation. ; ICICI Bank Limited acting through its Hong Kong
Branch (ICICI Bank) signed a loan agreement with the Export-Import Bank of
China (China Exim) for USD 98 million under the Two- step Buyer Credit
(Export Credit) arrangement. ICICI Bank is the first Indian Bank to have entered
into this arrangement with China Exim ; ICICI Bank with Singapore Airlines
launched “ICICI Bank Singapore Airlines Visa Platinum Credit Card”, the Card
has exclusive privileges especially designed for the members. ; ICICI Bank
provider, to facilitate mChek services to all ICICI Bank Debit and Credit Card
customers. These are electronic cards issued to the customers with mChek
ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of
India) is India's largest private sector bank by market capitalisation and second largest
overall in terms of assets. Trotal assets of Rs. 3,562.28 billion (US$ 77 billion) at
December 31, 2014 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the nine
months ended December 31, 2014. The Bank also has a network of 1,640+ branches (as
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on February 11, 2010) and about 4,721 ATMs in India and presence in 18 countries, as
well as some 24 million customers (at the end of July 2012). ICICI Bank offers a wide
range of banking products and financial services to corporate and retail customers
through a variety of delivery channels and specialised subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture capital and asset
management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit
cards in India. ICICI Bank has got its equity shares listed on the stock exchanges at
Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and
its ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in overseas
markets and has the largest international balance sheet among Indian banks. ICICI Bank
Canada, Russia and the UK (the subsidiary through which the HiSAVE savings brand is
operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai,
branches in Belgium, Hong Kong and Sri Lanka, and representative offices in
Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab
Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian)
population in particular.
ICICI reported a net profit of Rs. 3,758 crore (US$ 741 million) for FY2014. The bank's
Current and savings account (CASA) ratio increased to 28.7% at March 31, 2014 from
26.1% at March 31, 2013. Increase of Rs. 5,286 crore in CASA deposits in quarter ended
March 31,2014.
ICICI Bank is one of the Big Four Banks of India with State Bank of India, Axis Bank
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ICICI Bank Group
BUSINESS PROFILE
Personal Banking
• Deposits
• Loans
• Cards
• Investments
• Insurance
• Demat Services Wealth Management
NRI Banking
• Money Transfer
• Bank Accounts
• Investments
• Property Solutions
• Insurance
• Loans
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Business Banking
Head Office
ICICI Bank
9th Floor, South Towers
ICICI Towers
Bandra Kurla Complex
Bandra (E) Mumbai.
Phone: 91-022-653 7914 Website:
www.icicibank.com
Capital structure
The Authorized Capital of ICICI Bank is 214.75 Crores. The Issued, Subscribed and Paid Up
Capital is divided into 1113250642 equity shares @ Rs.10/- each.
Board of Directors
Board Members
Mr. K. V. Kamath, Chairman
....................................................
Mr. Sridar Iyengar
....................................................
Mr. Homi R. Khusrokhan
....................................................
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Mr. Lakshmi N. Mittal
................................................
Mr. Narendra Murkumbi
.................................................
Dr. Anup K. Pujari
.................................................
Mr. Anupam Puri
..................................................
Mr. M.S. Ramachandran
..................................................
Mr. M.K. Sharma
..................................................
Mr. V. Sridar
Prof. Marti G. Subrahmanyam
.........................................................
Mr. V. Prem Watsa
.........................................................
Ms. Chanda D. Kochhar,
Managing Director & CEO
.........................................................
Mr. Sandeep Bakhshi,
Deputy Managing Director
.........................................................
Mr. N. S. Kannan,
Executive Director & CFO
.........................................................
Mr. K. Ramkumar,
Executive Director
.........................................................
Mr. Sonjoy Chatterjee,
Executive Director
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Board committee
Board Governance Remuneration &
Audit Committee Nomination Committee
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Mr. K. V. Kamath, Chairman Mr. M. K. Sharma, Chairman
Mr. Sridar Iyengar Mr. Narendra Murkumbi
Dr. Anup K. Pujari Mr. N. S. Kannan
Prof. Marti G. Subrahmanyam
Mr. V. Prem Watsa
Ms. Chanda D. Kochhar
Committee of Executive Directors
Ms. Chanda D. Kochhar, Chairperson
Mr. Sandeep BakhshiMr. N. S. Kannan
Mr. K. Ramkumar
BUSINESS OBJECTIVE
Vision
To be the leading provider of financial services in India and a major global bank.
Mission
• We will leverage our people, technology, speed and financial capital to: be the
banker of first choice for our customers by delivering high quality, world-class
service.
• Expand the frontiers of our business globally.
• Play a proactive role in the full realization of India’s potential.
• Maintain a healthy financial profile and diversify our earnings across businesses
and geographies.
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• Maintain high standards of governance and ethics.
• Contribute positively to the various countries and markets in which we operate.
• Create value for our stakeholders.
TECHNOLOGY Used In ICICI Bank
ICICI use many type of advance technological software like Pinnacle 7.0 and
Pinnacle7.016.Among from this software ICICI bank uses the e-banking, core banking,
mobile banking electronic display sy ICICI Bank was using Teradata for its data
warehouse. However, due to its proprietary hardware, the cost of procurement, upgrades
and administration was soaring. The closed box architecture of Teradata imposed
simultaneously. Queries could only be run during business hours because the loading of
data had to take place during off business hours. This meant that the refresh rate of EDW
was delayed, so queries may not reflect the most current data. ICICI Bank was also
dependent on Teradata for support and other activities: The bank was completely tied
These issues compelled ICICI Bank to look for more efficient and flexible solutions. The
solution would have to address not only current issues, but accommodate future growth
warehousing solutions in the pursuit of solving its issues, and developed a shortlist of
alternatives for its migration proof-of-concept: Sybase, SAS and Netezza. The primary
criteria for evaluation was the price-to-performance ratio where Sybase IQ emerged the
clear winner. During this rigorous testing, Sybase IQ delivered faster results on
the improvements achieved, Amit Sethi, Joint General Manager, ICICI bank says, "What
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impressed us was that even with overall lower costs, we could achieve significantly better
query performance after implementing the Sybase enterprise warehouse solution." ICICI
InfoTech today launched an enterprise resource planning (ERP) solution for the small
The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon
server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a
15-user license.
all the important parts in the company such as product planning, parts purchasing,
ICICI InfoTech officials told a press conference here today that Orion Advantage offered
a set of business practice solutions for industry segments such as engineering, auto
ancillary, pharmaceuticals, chemicals and IT distribution. Besides the cost advantage, the
ERP package also came pre-configured. ICICI InfoTech had mapped the processes
Mr. Manoj Kunkalienkar, Executive Director and President, ICICI InfoTech, said that
small and medium enterprises (SMEs) offered a good market and ICICI InfoTech hoped
Mr. R.K. Kanthi, Deputy General Manager, ICICI InfoTech, said there was no ERP
package for the SMEs that bundled the server, database and operating system right now.
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That was the advantage ICICI InfoTech offered to SMEs as Orion Advantage came
bundled and preconfigured. Besides the high cost of generic ERP packages, their
implementation time as far as SMEs were concerned was also long. Orion Advantage
ICICI InfoTech had signed up six customers so far for the package and hoped to garner a
15 per cent market share of the SME segment, whose number in the country was
Mr. K.S. Natarajan, Managing Director, Trident Pneumatics Pvt Ltd of Coimbatore, one
of the companies that had installed Orion Advantage, said that the company had tried
three other ERP packages, all of which had failed, before settling on Orion Advantage.
Mr Kunkalienkar said that ICICI InfoTech planned to move the two development centers
in Chennai into a single location and double the staff strength from 300 now in the next
two years.
The Chennai centers were involved in research and development of Orion ERP solutions
We can see that the how technology gives the best results in the below diagram. There
are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the
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Loan Product Deposit Product Investment &
Insurance
• Auto loan • Savings A/C • Mutual Funds
• Loan against • Current A/C • Bonds
security • Fixed Deposits • Knowledge Centre
• Loan against • Demat A/C • Insurance
property • Safe Deposit • General And Health
Lockers Insurance
• Personal loan
• Credit card • Equity And
Derivatives
• 2- wheeler loan
• Commercial • Mudra Gold Bar
vehicles finance
• Home loans
• Retail business
banking
• Tractor loan
• Working capital
finance
• Construction
• Equipment finance
• Health care finance
• Education loan
• Gold loan
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• Credit Card • Net Safe • Net Banking
• Debit Card • Merchant • One View
• Prepaid Card • Prepaid Refill • InstaAlert Mobile
• Bill Pay Banking
-------------------------------- • Visa Bill Pay • ATM
Forex services • InstaPay • Phone Banking
-------------------------------- • Direct Pay • Email Statements
• Product And • VisaMoney • Branch Network
Services Transfers
WHOLESALE BANKING
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BANKS
• Funded Services • Funded Services • Clearing
• Non Funded • Non Funded SubMembership
Services Services • RTGS Sub-
• Value Added • Specialized Services Membership
Services • Value Added • Fund Transfer
• Internet Banking Services • ATM Tie- Ups
• Internet Banking • Corporate Salary
A/C
• Tax Collection
Financial Institutions
Mutual Funds
Stock Brokers
Insurance Companies
Commodities Business
Trusts
NRI SERVICES
Page 39
• Rupee Saving A/C • North America
• Rupee Current A/C • Uk
• Rupee Fixed Deposits • Europe
• Foreign Currency Deposits • South East Asia
• Accounts For Returning Indians • Middle East
• Africa
• Others
Quick Remit
India Link
Check Lock Box
Telegraphic/ Wire Transfer
Fund Transfer Cheques/Dds/Tcs
Page 40
• Net Safe • Net Banking
• Bill Pay • One View
• InstaPay • InstaAlert
• DirectPay • ATM
• VisaMoney • Phone Banking
• Online Donation • Email Statements
• Branch Networks
Page 41
PRODUCTS
ICICI Bank offers wide variety of Deposit Products to suit your requirements. Coupled
with convenience of networked branches/ ATMs and facility of E-channels like Internet
and Mobile Banking, ICICI Bank brings banking at your doorstep. Select any of its
deposit products and provide your details online and their representative will contact you
for Account Opening.
SAVING ACCOUNTS
ICICI Bank offers customers a power packed Savings Account with a host of
convenient features and banking channels to transact through. So now customers can
bank at their convenience, without the stress of waiting in queues.
The Special Savings Account has been designed keeping in mind the specific needs of
organizations such as Trusts, Associations, Societies, Councils, Clubs etc. It provides
organizations solutions with added value and is ideal for tax exempted entities.
LIFE PLUS, a special savings account for senior citizens from ICICI Bank is
packed with a host of benefits, designed keeping your unique financial
requirements in mind.
Page 42
• Special senior citizens desk to cater to all banking transactions, so that you
don’t wait in queues.
• Higher interest rate on FD/RD: avail the combined benefits of safety,
flexibility and attractive returns with ICICI Bank Fixed Deposit and Recurring
Deposit.
• Free special senior citizen LIFE PLUS debit card.
• Money multiplies facility.
• Extended banking hours allows you to visit our branches, as per your
convenience.
• Anywhere banking access to various services, ICICI Bank has to offer –
anytime, anywhere and from any place, including branches, ATMs and phone
banking.
• Nomination facility available.
• Quarterly average balance(QAB) requirement of Rs.5000.
• Quarterly physical statements are delivered to your doorstep to absolutely free
of cost.
• Passbook on request.
Page 43
Once you are done with your 'banking', you can access your child's account with all the
fun links to special zones designed to suit your child's area of interests and also impart
knowledge on the current events of the world.
Current Accounts:
Every business requires efficient banking facilities to support its business activities.
ICICI Bank offers premium quality service, unfolding a wide array of class
products. With technology leadership and service the bank is able to meet some of
the most challenging financial needs of clients. A Current Account is one that is
required by Businessman, Joint stock companies, Institutions, Public authorities,
Page 44
public corporations etc. Any business that has numerous banking transactions need a
current account as it
• Allows running account supporting unlimited withdrawals and deposits.
• Is meant for convenience and not to save money.
Only Roaming Current Account from ICICI Bank travels the distance with customers
business. With advanced technological features such as MCC and LCC, banking
needs are well taken care of, customers can access their accounts at over 500
networked branches across the country.
So while customers take care of their business, ICICI Bank’s Roaming Current
Account simplifies banking for them.
Salary Accounts
Salary Account is a feature rich corporate payroll account with benefits for both
corporate and its employees.
ICICI Bank Salary Account is a benefit-rich payroll account for Employers and
Employees. As an organization, you can opt for our Salary Accounts to enable easy
disbursements of salaries and enjoy numerous other benefits too. With ICICI Bank Salary
Accounts your employees will enjoy the convenience of :
Page 45
• Free Internet Banking.
All that the organization would require to do is to send ICICI Bank an advice (in form of
a cheque/debit instruction, ecs, etc) for the total salary amount along with the salary
details of the designated employees in a soft and hard copy format and we will credit the
respective employees' accounts as per your statement of advice. ICICI Bank Salary
Accounts benefits you in more than one ways:-
• Reduces paperwork.
Employees receive instant credit of salaries. More convenient than ECS Besides all of the
above, employees automatically become ICICI Bank account holders with special
benefits and privileges of 8-8 banking, Investment advisory and much more...
Fixed deposits:
Page 46
• Loan facility available – you can avail loan up to 90% of principal and accrued
interest.
• Auto renewal facility – you can choose this option so that the deposit can be
renewed on maturity.
• Interest compounded quarterly.
• Additional interest rate of 0.5% for senior citizens.
Recurring Deposits:
Recurring deposits aims to encourage savings without putting any stress on customers
finances by making them to put a lump sum amount in fixed deposit in one go.The
recurring deposit also attracts high rate of return that are identical to the fixed deposit
rates and most importantly no TDS is applicable in it .the minimum balance of deposit is
of Rs.500 and thereafter in multiples of Rs.100 the minimum period is 6 months and
thereafter in multiples of 3 months, nomination facility is also available.
Security Deposits:
Page 47
the consent of the company and the company has the right to withdraw the FD in the
event of employee leaving the organization before a certain stipulated period.
EEFC Account
Indian exports have surged over the last decade owing to an unprecedented boom in
sectors like software, biotechnology, gems, jewellery, textiles etc. As a result of this, the
volume of inward remittances has also increased significantly. To shield the firms
engaged in regular export and import from the exchange rate fluctuations RBI has
allowed parking of foreign currency by exporters in an account designated as Exchange
Earners Foreign Currency Account (EEFC). EEFC accounts are Current Accounts held in
foreign currency with authorized dealers of foreign exchange in the country.
PRIVILEGE BANKING:
Page 48
Privilege banking service ensures preferential treatment to its customers.
Page 49
• Preferential rates for gol coins,deposit lockers and foreign exchange.
• Quarterly average balance (QAB)requirement of Rs.75000 and Total Relationship
Value(TRV)of Rs. 5,00,000.
Family banking:
Outward Remittance:
ICICI Bank offers you a simple way to send money outside India. Our Outward
Remittance facilities make remitting money abroad quick, and reliable. ICICI Bank’s
Outward Remittance is the solution for your all your needs. Be it money for education,
gift money or maintenance for loved ones or donation for a cause. Our extensive network
gives us reach to most parts of the world.
Advantage Deposit
Page 50
Advantage Deposit is a combination of fixed deposit and mutual fund investment,
offering you the safety of a fixed deposit and the returns of an equity fund. Advantage
Deposit counters equity-market fluctuations through Systematic Investment Plans.
ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION
SYSTEM launched on May 1, 2014 by the Government of India. The scheme, promoted
by the PFRDA (Pension Fund Regulatory and Development Authority, Government of
India), is a first of its kind in India and is being launched pan-India by 22 other POP's as
well.
The purpose of this pension scheme is to promote security of income to its subscribers in
their old age. The scheme will empower a subscriber to plan his own retirement and
pension. It not only will help him save for life after retirement but also is a good
investment tool as the returns are market-driven. For optimum returns, the Government
has appointed six fund managers for subscribers to choose from.
LOANS
HOME LOAN
Page 51
around 12% per annum. In such a case, you can opt for a balance transfer. Under this
scheme, customers can replace
their existing old high interest loan by a cheaper (equal to applicable current rates) loan.
ICICI Home Finance will not only finance the balance amount of outstanding loan but
also your prepayment charges to the old housing finance company.
The result:
CAR LOAN
Page 52
The NO. 1 financier for car loans in the country. Network of more than 1500 channel
partners in over 780 locations. Tieups with all leading automobile manufacturers to
ensure the
best deals. Flexible schemes & quick processing. Hassle-free application process on the
click of a mouse.
Page 53
RESEARCH
METHODOLOGY
Research methodology
The procedure adopted for conducting the research requires a lot of attention as it has
direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this
reason that research methodology, which we used at the time of conducting the research,
needs to be elaborated upon. It may be understood as a science of studying how research
is done scientifically. So, the research methodology not only talks about the research
methods but also considers the logic behind the method used in the context of the
research study. Research Methodology is a way to systematically study and solve the
research problems. If a researcher wants to claim his study as a good study, he must
clearly state the methodology adapted in conducting the research the research so that it
way be judged by the reader whether the methodology of work done is sound or not.
Page 54
The Research Methodology here includes:-
Objective of study
Meaning of Research.
Research Problem.
Research Design.
Page 55
RESEARCH DESIGN USED IN THE STUDY:
Descriptive research design is used in this study because it will ensure the minimization
of bias and maximization of reliability of data collected. Descriptive study is based on
some previous understanding of the topic.
INTERNET – which includes required financial data collected form ICICI Bank’s
official website i.e www.icici.com and some other websites on the internet for the
purpose of getting all the required financial data of the bank and to get detailed
The valuable cooperation extended by staff members and the branch manager of
ICICI bank, Lucknow contributed a lot to fulfill the requirements in the collection
Page 56
3. Ratio Analysis.
4. Cash Flow Statement.
IMPORTANCE OF
THE STUDY
IMPORTANCE OF THE STUDY
Page 57
Page 58
FINANCIAL
ANALYSIS
Page 59
2012 2013 2014 2015 20146
CAPITAL
AND
LIABILITIES:
Total Share 1086.75 1239.83 1249.34 1462.68 1463.29
Capital
Equity Share 736.75 889.83 899.34 1112.68 1113.29
Capital
Share 0.02 0.00 0.00 0.00 0.00
Application
Money
Preference Share 350.00 350.00 350.00 350.00 350.00
Capital
Reserves 11813.20 21316.16 23413.92 45357.53 48419.73
Revaluation 0.00 0.00 0.00 0.00 0.00
Reserves
Net Worth 12899.97 22555.99 24663.26 46820.21 49883.02
Deposits 99818.78 165083.17 230510.19 244431.05 218347.82
Borrowings 33544.50 38521.91 51256.03 65648.43 67323.69
Total Debt 146263.25 226161.17 306429.48 356899.69 335554.53
Other Liabilities 21396.17 25227.88 38228.64 42895.39 43746.43
And Provisions
Total Liabilities 167659.42 251388.95 344658.12 399795.08 379300.96
ASSETS:
Cash And 6344.90 8934.37 18706.88 29377.53 17536.33
Balances With
RBI
Balances With 6585.07 8105.85 18414.45 8663.60 12430.23
Banks,Money At
Call
Advances 91405.15 146163.11 195865.60 225616.08 218310.85
Investments 50487.35 71547.39 91257.84 111454.34 103058.31
Gross Block 5525.65 5968.57 6298.56 7036.00 7443.71
Accumulated 1487.61 1987.85 2375.14 2927.11 3642.09
Depreciation
Net Fixed Assets 4038.04 3980.72 3923.42 4108.89 3801.62
Capital Work In 96.30 147.94 189.66 0.00 0.00
Progress
Other Assets 8702.59 12509.57 16300.26 20574.63 24163.62
Total Assets 167659.40 251388.95 344658.11 399795.07 379300.96
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Contingent 97507.79 119895.78 177054.18 371737.36 803991.92
liabilities
Bills for 9803.67 15025.21 22717.23 29377.55 36678.71
collection
Book 170.35 249.55 270.37 417.64 445.17
value(Rs.)
EPS 27.22 28.55 34.59 37.37 33.78
No. of equity 736716094 889823901 899266672 1112687495 1113250642
shares
Page 61
Eps(Rs.) 27.22 28.55 34.59 37.37 33.78
Equity 85.00 85.00 100.00 110.00 110.00
Dividend(%)
Book Value(Rs) 170.35 249.55 270.37 417.64 445.17
Appropriations
Transfer To 547.00 248.69 1351.12 1342.31 2013.42
Statutory Reserve
Transfer To Other 600.01 1320.34 0.00 0.01 0.01
Reserve
Proposed 723.06 865.83 1054.27 1377.37 1375.79
Dividend/Transfer
To Govt
Balance C/F To 188.22 293.44 998.27 2436.32 2809.65
Balance Sheet
Total 2058.29 2728.30 3403.66 5156.01 6193.87
Page 62
FINANCIAL STATEMENT ANALYSIS
Comparative Balance Sheet Of ICICI Bank From 2012-2013 To
20152016
ASSETS:
Investments 21060.04 42 19710.45 27.5 20196.5 22 (8396.03)
Advances 54757.96 60 49702.49 34 29750.48 15 (7305.23
Fixed assets (57.32) (1.4) (57.3) (1.4) 185.47 5 (307.27)
Capital Work 51.64 54 41.72 28.2 (189.66) -100 0.00
In Progress
Current assets 7917.23 37 23871.8 81 5194.17 10 (4485.58)
TOTAL 83729.55 50 93269.16 37 55136.96 16 (20494.11)
ASSETS:
Interpretation
Page 63
The capital of bank increased by 14% in 2012-13,0.8% in 2013-
2015-16.
surplus also. This shows that bank is effectively utilizing its reserves
and surplus.
shows that the bank has repaid its deposits in this year.
2015-16 the borrowings have increased at a very low rate this shows
that bank has repaid a large amount of borrowings in this year and
The investments are also increasing but with lower rates compared to
Page 64
There has been a consistent decline in the fixed assets over years in
increased at a much lower rate i.e. at 10%.this shows that the bank is
Page 65
Comparative Income Statement Of ICICI Bank From 2012-2013 To
2014-2015
Interpretation:-
The net profit shows a fluctuating trend i.e it increased by 27% in 2012-13,22.4%
increase in 2013-14,and increased by 34% in 2014-15 and finally if falls by 10%
in2013-14.this may be due to decline in operating income and increased tax
liability in the year 2015-16.
The interest expenses from the period 2012 to 2015 showed an increasing trend
but decreased in 2015-16 due to repayment of borrowings.
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TREND ANALYSIS
Trend Percentage Of ICICI Bank From 2012-2013 To 2014-2015
(base year 2004 -05) Percentage(%) figures
Particulars 2012 2013 2014 2015 2016
Deposits 100 165 231 245 219
Advances 100 160 214 247 239
Net profit 100 127 155 207 187
300
250
200
(%) DEPOSITS
150 ADVANCES
NET PROFIT
100
50
0
2012 2013 2014 2015 2016
Years
Interpretation:
There is a continuous increase in the deposits till the year ending 2015 followed
by a downfall in the year ending 2016 due to repayment deposits in this year.
Similarly advances also shows as increasing trend till the year ending 2015
followed by a slight downfall in the year ending 2016.
There has been a substantial increase in net profit till the year ending 2015 .In four
years it has been more than double.
RATIO ANALYSIS
Page 67
CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY
Current Ratio of ICICI Bank for the period of
2012-2016
1.6
1.39 1.36
1.4
1.23
1.17
1.2
1.01
1
Ratio
0.8 Current Ratio
0.6
0.4
0.2
0
2012 2013 2014 2015 2016
Years
Interpretation:
An ideal solvency ratio is 2. The ratio of 2 is considered as a safe margin of solvency due
to the fact that if current assets are reduced to half (i.e.) 1 instead of 2, then also the
creditors will be able to get their payments in full. But here the current ratio is less than 2
and more than 1 which shows that the banks have current assets just equal to the current
liabilities which is not satisfactory as the safety margin is very less or zero. Therefore the
bank should keep more current assets so that it can maintain a satisfactory safety margin.
LIQUID RATIO:
Liquid ratio is also known as ‘Quick’ or ‘Acid Test ‘Ratio. Liquid assets refer to assets
which are quickly convertible into cash. Current Assets other stock and prepaid expenses
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Quick Ratio = Total Quick Assets
Total Current Liabilities
Quick Assets = Total Current Assets – Inventory
1.2
1 0.97
0.88
0.8
Ratio 0.67 0.68
0.6
0.6 Liquid Ratio
0.4
0.2
0
2012 2013 2014 2015 2016
Years
Interpretation:
A quick ratio of 1:1 is considered favorable because for every rupee of current liability,
there is at least one rupee of liquid assets. A higher value of ratio is considered favorable.
Here this ratio is less than 1 in 2012,2013 & 2016 but in 2013 & 2014 it is close to 1
which is not satisfactory. This means the bank has not managed its funds properly in this
particular period. Therefore bank should rationally utilize its funds to maintain an ideal
liquid ratio.
Earning Per Equity Share = Net Profit after Tax –Prefrence Dividend
No. of Equity shares
Page 69
Earnings Per Share Ratio of ICICI Bank for the
period of 201
2-2016
40 37.37
34.59 33.78
35
30 27.22 28.55
25
Ratio
20 Earnings Per Share
15
10
5
0
2012 2013 2014 2015 2016
Years
Interpretation:
Earning per Share is the most commonly used data which reflects the performance and
Here the Earning Per Share is shows a persistent increase till the year 2015 after that in
the year 2016 Earning Per share is followed by a downfall due to decline in profits.
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Dividend Per Share Ratio of ICICI Bank for the
period of 2012-2016
12 11.03 11
10.02
10 8.59 8.53
8 Dividend Per Share
Ratio
6 Ratio
2
0
2012 2013 2014 2015 2016
Years
Interpretation:
Here the Dividend Per Share is increasing year after year except a little decline in
2016.otherwise the dividend per share ratio of the bank is quite satisfactory which shows
Page 71
Net Profit Ratio of C
I ICI Bank for the period of 201
2-2016
25
21.3
20 18.42
15 13.52 13.5
Ratio 12.08
Net Profit Ratio
10
0
2012 2013 2014 2015 2016
Years
Interpretation:
Although both the sales and net profit have increased during the above period but the Net
Profit Ratio of the bank is declining continuously. This is because of the reason that net
Page 72
2014 5874.4 22994.29 25.54
2015 7960.69 30788.34 25.85
2016 8925.23 31092.55 28.7
Net Sales
15
10
0
2012 2013 2014 2015 2016
Years
Interpretation:
In the year 2010 & 2011 the operating profit is 31.41% & 34.02% respectively. After that
it has been consistently declined from the year 2014 till 2015 and again gaining
momentum in 2016. This may be due to the reason that operating expenses have been
increased more as compared to sales during the above period consequently reducing the
operating profits. Therefore the bank should check on unnecessary operating expenses to
correct this situation and to provide a sufficient return.
Return On Net Worth = Net Profit After Interest And Tax x 100
Shareholder’s Funds
Page 73
Interpretation:
The net profit after interest and tax have increased slowly till the year 2014 followed by a
downfall due to high interest payments, operating expenses and taxation liability.
Consequently the net worth ratio has declined considerably and has reduced to more than
half in the year 2016 than it was in 2012.
Page 74
2013 12694.05 226161.17 5.61
2014 20006.54 306429.48 6.52
2015 28540.34 356899.69 7.99
2016 27842.9 335554.53 8.29
9
8.29
8 7.99
7 6.52
6.22
6 5.61
Ratio
5
Return On Capital Employed
4
0
2012 2013 2014 2015 2016
Years
Page 75
Interpretation:
The above table exhibit the return on capital employed ratio of the bank for last five
years. This ratio measures the earning of the net assets of the business. The ratio was
6.22% in year 2012. After that it raised to the tune of 5.61%,6.52%,7.99% and 8.29% in
year 2013, 2014, 2015 and year 2016 respectively. It lead to the conclusion bank rising
14 12.97
11.99
12
10.14
10
Ratio
8 7.53
6.6 Debt Equity Ratio
6
4
2
0
2012 2013 2014 2015 2016
Years
Page 76
Interpretation:
The ratio shows the extent to which funds have been provided by long-term creditors
as compared to the funds provided by the owners. Here the Debt-Equity ratio for the
above period is always high. this shows that the bank is more relying on outside funds
as compared to internal sources of capital, in its capital structure. From the long-term
lenders point of view this ratio is not satisfactory.
PROPRIETORY RATIO:
0.14 0.13
0.12
0.12
0.1
Ratio 0.08
0.08 0.07 0.07
Proprietory Ratio
0.06
0.04
0.02
0
2012 2013 2014 2015 2016
Years
Page 77
Interpretation:
Above table exhibits the proprietary ratio of the bank for last five years . It was 7% in
2012, after that was 8% in year 2013. Similarly it was once again reduced to 7 % in the
year 2014. After 2014 it registered increase and was 12% and 13% in the year 2015 and
2016 respectively. Hence it leads to the conclusion owners have less than 13% stake in
the total assets of the bank. It is not a good sign as far the long term solvency is
concerned.
9 8.17
8 7.49
7
5.86
6
Ratio
5 Fixed assets Turn
over
4 3.46 Ratio
3 2.33
2
1
0
2012 2013 2014 2015 2016
Years
Page 78
2015 30788.34 4108.89 7.49
2016 31092.55 3801.62 8.17
Interpretation:
Here the fixed assets employed in the business shows a decreasing trend except in the
year 2015 where fixed assets have again increased. This may be due to increase in rate of
depreciation in subsequent years. Nevertheless the fixed assets turnover ratio has been
consistently increasing. It indicates that fixed assets have been effectively used in the
business without much additional investment in the period of study and also the capital is
not blocked in fixed assets.
CREDIT-DEPOSIT RATIO:
Credits
Credit Deposit Ratio 100
1.05
1 0.99
0.95 0.92
Ratio 0.91
0.9 0.88 Credit Deposit ratio
0.85 0.84
0.8
0.75
2012 2013 2014 2015 2016
Years
D
eposits
Page 79
2012 91405.15 99818.78 91
2013 146163.11 165083.17 88
2014 195865.6 230510.19 84
2015 225616.08 244431.05 92
2016 218310.85 218347.82 99
Interpretation:
Above table exhibits credit deposit ratio of the bank during last 5 years in the year
2012 ratio was 91% and it declined to 88% and 84%in the year 2013 and 2014
respectively. In the year 2015 and 2016 ratio was increased to 92% and 99%
respectively. it leads to conclusion that credit performance of the bank is very good.
Page 80
FINDINGS
Page 81
Findings
Profit before tax for the year ended March 31, 2016 (FY2014) was Rs. 5,117
crore (US$ 1,009 million), compared to Rs. 5,056 crore (US$ 997 million) for the
year ended March 31, 2016 (FY2016).
Profit after tax for FY2016 was Rs. 3,758 crore (US$ 741 million) compared to
Rs. 4,158 crore (US$ 820 million) for FY2013 due to the higher effective tax rate
on account of lower proportion of income taxable as dividends and capital gains.
Net interest income increased 15% from Rs. 7,304 crore (US$ 1,440 million) for
FY2015 to Rs. 8,367 crore (US$ 1,650 million) for FY2016. While the advances
declined marginally year-on-year, the net interest income increased due to
improvement in net interest margin from 2.2% in FY2015 to 2.4% in FY2016.
Operating expenses (including direct marketing agency expenses) decreased 14%
to Rs. 6,835 crore (US$ 1,348 million) in FY2016 from Rs. 7,972 crore (US$
1,572 million) in FY2015. The cost/average asset ratio for FY2016 was 1.8%
compared to 2.2% for FY2015.
During the year, the Bank has pursued a strategy of prioritizing capital
conservation, liquidity management and risk containment given the challenging
economic environment. This is reflected in the Bank’s strong capital adequacy
and its focus on reducing its wholesale term deposit base and increasing its CASA
ratio. The Bank is maintaining excess liquidity on an ongoing basis. The Bank has
also placed strong emphasis on efficiency improvement and cost rationalization.
Page 82
The Bank continues to invest in expansion of its branch network to enhance its
deposit franchise and create an integrated distribution network for both asset and
liability products.
In line with the above strategy, the total deposits of the Bank were Rs. 218,348 crore
(US$ 43.0 billion) at March 31, 2016, compared to Rs. 244,431 crore (US$ 48.2 billion)
at March 31, 2015. The reduction in term deposits by Rs. 24,970 crore (US$ 4.9 billion)
was primarily due to the Bank’s conscious strategy of paying off wholesale deposits.
During Q4-2016, total deposits increased by Rs. 9,283 crore (US$ 1.8 billion), of which
Rs. 5,286 crore (US$ 1.0 billion), or about 57%, was in the form of CASA deposits. The
CASA ratio improved to 28.7% of total deposits at March 31, 2016 from 26.1% at March
31, 2015.
The branch network of the Bank has increased from 755 branches at March 31,
2014 to 1,438 branches at April 24, 2016. The Bank is also in the process of
opening 580 new branches which would expand the branch network to about
2,000 branches, giving the Bank a wide distribution reach in the country.
In line with the strategy of prioritizing capital conservation and risk containment, the loan
book of the Bank decreased marginally to Rs. 218,311 crore (US$ 43.0 billion) at March
31, 2016 from Rs. 225,616 crore (US$ 44.5 billion) at March 31, 2015.
Liquidity position
The liquid ratio of the bank in the year 2012,2013 and 2014 is 0.60,0.67and 0.68
respectively and the year 2013 and 2014 liquid ratio is 0.97 and 0.88 respectively
which is close to 1.Though it is not equal to the ideal liquid ratio of 1:1 but still its
under control. So in nut shell, it can be concluded that the liquidity position of the
bank is quite satisfactory.
Page 83
Capital adequacy and return on capital employed
The Bank’s capital adequacy at March 31, 2016 as per Reserve Bank of India’s
revised guidelines on Basel II norms was 15.5% and Tier-1 capital adequacy was
11.8%, well above RBI’s requirement of total capital adequacy of 9.0% and Tier-1
capital adequacy of 6.0%. The above capital adequacy takes into account the impact
of dividend recommended by the Board.
Also the capital is being effectively utilized in the bank as it shows better return on
capital employed over years.
Asset quality
At March 31, 2016, the Bank’s net non-performing asset ratio was 1.96%. During the
year the Bank restructured loans aggregating to Rs. 1,115 crore (US$ 220 million).
Since the dividend per share has shown a promising increase for the period under
study. It shows that the bank is following a sound dividend policy and is capable of
distributing higher dividends. in this way the investors will feel investing in capital of
the bank a much beneficial option and will be reluctant to withdraw capital for a long
time.
The earnings per share for the period under study also show a promising increase. it
suggests that bank has better profitability position and in future it can be a better or
attractive channel of investment for shareholders.
Page 84
Higher trends of credit deposit ratio – A positive sign
High trends of credit deposit ratio reveals that bank has performed satisfactorily as regard
to granting loans and advances to generate income. It suggests that credit performance is
good and the bank is doing its business good by fulfilling its major objective as regards to
granting loans and accepting deposits.
SUGGESTIONS
Page 85
Suggestions
Although the short term liquidity position is quite satisfactory as per revealed by
liquid ratio but the current ratio is below the ideal ratio of 2:1.So the bank should
make efforts to increase its current assets to maintain a safety margin and to
maintain a better liquidity position.
The profitability of the bank for the period under study is not satisfactory. Profits
are increasing but not with same pace as of the expenditure due to higher reliance
on debt capital in the form of borrowings and loans for financing capital structure.
So in order to improve profitability, the bank should reduce its dependence on
external equities for meeting capital requirements. Consequently, the interest
expenses will decline and profits will increase which is good for the bank.
Similarly non productive expenses should be curtailed to improve profitability.
Higher trend of credit deposit ratio reveals that the bank has performed
satisfactorily as regard to granting loans and advances to generate income. It
suggests that the credit performance of bank is good and it is performing its
business well by fulfilling the major objective of granting credit and accepting
deposit. So in order to have more creditability in the market the bank should
maintain its credit deposit ratio.
Though the bank has been successful in increasing it’s deposits but to further
improve upon such situation it can introduce some new and attractive schemes for
public. Such schemes can be in the form of higher rate of interest and shorter
maturity period for FD’s etc.
Page 86
Bank should try to finance more and more projects. Financing will help it to earn
higher amount of profits.
The bank is having a greater reliance on debt capital. The increasing reliance on
external equities may prove hazardous in the long run. So in order to remedy this
situation bank should increase its focus on internal equities and other sources of
internal financing.
Bank can also think for improving it’s day-to -day service to its clients. Such
service can be improved by providing prompt service and showing an attitude of
co-operation to its clients. It will help to give a kind of confidence to the public
and build a better public image.
To achieve the objective of Rural development it should open more and more
branches in different rural areas of the country. It will facilitate in providing help
to rural poor farmers and other living below the poverty line. Bank can appoint
commission agents for different area who can encourage general public to invest
in the capital of the bank and make more deposits in ICICI Bank.
The bank should simplify the procedure of advances for quick disbursement.
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CONCLUSION
Conclusion
On the basis of various techniques applied for the financial analysis of ICICI Bank we
can arrive at a conclusion that the financial position and overall performance of the bank
is satisfied. Some Points:-
The income level of the ICICI Bank is quite better in 2016, the income from
interest and other income are around best position, and it is 5 and 4 respectively.
Which show the better position in income earning, and if we talk about the overall
income position then it is around average.
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The expenditure level was increased with increasing rate the overall rating of the
expenses is into between poor and average which show the poor condition of the
bank
The level of advances increased with increasing rate in 2016 it was in better
position, if we talk about the overall performance of the bank in case of level of
advances then it is around average
The amount of deposits was also increased with increasing rate, when we talk
about the average performance of bank for last five year then the position of
current deposits, saving deposits and demand deposits fall in the average category.
Any comment including suggestion ,I have given which will be relevant and
suitable separately in analysis report of above point
Page 89
Limitations of
study
Limitations
Branch manager was reluctant for giving financial data of the bank.
the published annual reports of ICICI Bank for the study period.
Ratio itself will not completely show the company’s good or bad financial
position.
Page 90
Inter firm comparison was not possible due to the non availability of
competitors data.
The study of financial performance can be only a means to know about the
Page 91
BIBLIOGRAPHY
BIBLIOGRAPHY
Page 92
• Porterfield (1965), “Investment Decisions and Capital Costs”, Prentice Hall,
• Porwal, L.S.(1976), “Capital Budgeting in India”, Sultan Chand and Sons, New
Delhi.
• Departmental Records.
Websites
http://profit.ndtv.com/stock/icici-bank-ltd_icicibank/financials-ratio
http://www.indianotes.com/research-analysis/company/companyfinancial.php?
cc=MTQwMzAwNTYuMDA=
https://www.scribd.com/doc/75548828/Financial-statement-analysis-of-
ICICIbank
http://www.moneycontrol.com/financials/icicibank/ratios/ICI02
https://www.scribd.com/doc/52649325/FINAL-REPORT-ON-
FINANCIALANALYSIS-OF-ICICI-BANK
http://www.slideshare.net/hemanthcrpatna/a-project-report-on-analysis-
offinancial-statement-of-icici-bank
https://issuu.com/sanjaykumarguptaa/docs/project_report_on_financial_analysis_
of_icici_bank
Page 93
Annexure
ASSETS:
Cash And 6344.90 8934.37 18706.88 29377.53 17536.33
Page 94
Balances With
RBI
Balances With 6585.07 8105.85 18414.45 8663.60 12430.23
Banks,Money At
Call
Advances 91405.15 146163.11 195865.60 225616.08 218310.85
Investments 50487.35 71547.39 91257.84 111454.34 103058.31
Gross Block 5525.65 5968.57 6298.56 7036.00 7443.71
Accumulated 1487.61 1987.85 2375.14 2927.11 3642.09
Depreciation
Net Fixed Assets 4038.04 3980.72 3923.42 4108.89 3801.62
Capital Work In 96.30 147.94 189.66 0.00 0.00
Progress
Other Assets 8702.59 12509.57 16300.26 20574.63 24163.62
Total Assets 167659.40 251388.9 344658.1 399795.07 379300.96
5 1
Contingent 97507.79 119895.78 177054.18 371737.36 803991.92
liabilities
Bills for 9803.67 15025.21 22717.23 29377.55 36678.71
collection
Book 170.35 249.55 270.37 417.64 445.17
value(Rs.)
EPS 27.22 28.55 34.59 37.37 33.78
No. of 736716094 889823901 899266672 1112687495 1113250642
equity
shares
Page 95
Total Expenses 9870.04 14076.96 23049.06 31638.42 29771.04
Operating Profit 2956 4690.67 5874.40 7960.69 8925.23
Other Provision 428.80 1594.07 2226.36 2904.59 3808.26
And Contigencies
Provision For Tax 522 556.53 537.82 898.37 1358.84
Net Profit 2010.20 2540.07 3110.22 4157.73 3758.13
Extraordinary 0.00 0.00 0.00 0.00 (0.58)
Items
Profit B/F 53.09 188.22 293.44 998.27 2436.32
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FINANCIAL STATEMENT ANALYSIS
Comparative Balance Sheet Of ICICI Bank From 2012-2013 To
20152016
ASSETS:
Investments 19710.45 27.5 20196.5 22 (8396.03) (7.
5)
Advances 49702.49 34 29750.48 15 (7305.23 (3.
25)
Fixed assets (57.3) (1.4) 185.47 5 (307.27) (7.
5)
Capital Work 41.72 28.2 (189.66) -100 0.00 0.0
In Progress 0
Current assets 23871.8 81 5194.17 10 (4485.58) (8)
TOTAL 93269.16 37 55136.96 16 (20494.11) (5.
ASSETS: 1)
Page 97
Page 98
CASH FLOW STATEMENT OF ICICI BANK
2010 2011 2012 2013 2014
Profit before tax 2,527.20 3,096.61 3,648.04 5,056.10 5,116.97
Net cash -
flowoperating 9,131.72 4,652.93 23,061.95 -11,631.15 14,188.149
activity
Net cash used in
-3,445.24 -7,893.98 -18,362.67 -17,561.11 3,857.88
investing activity
Net cash used in
-1,227.13 7,350.90 15,414.58 29,964.82 1,625.36
fin. Activity
Net inc/dec in cash
4,459.34 4,110.25 20,081.10 683.55 -8,074.57
and equivalent
Cash and equivalent
8,470.63 12,929.97 17,040.22 37,357.58 38,041.13
begin of year
Cash and equivalent
12,929.97 17,040.22 37,121.32 38,041.13 29,966.56
end of year
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