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PROJECT REPORT ON “FINANCIAL ANALYSIS” OF ICICI Bank In the partial fulfillment of Award of the degree of Bachelor of business administration Submitted by: f: Under the Guidance o

ACKNOWLEDGEMENT No task is single man’s effort .Any job in this world however trivial or tough can not be accomplished without the assistance of others. An assignment puts the kno wledge and experience of an individual to litmus test. There is always a sense o f gratitude that one likes to express towards the persons who helped to change a n effort in a success. The opportunity to express my indebtness to people who ha ve helped me to accomplish this task. I deem it a proud privilege to extend my greatest sense of gratitude to my Proje ct Guide Miss SONU KHANDELWAL (lecturer MBA) for the keen interest, inspiring gu idance, continuous encouragement, valuable suggestions and constructive criticis m throughout the pursuance of this report. I am thankful to Coordinator sir DR. UTTAM CHAND for giving me the opportunity t o undertake the study. I am highly indebted to MR. DINESH JAMWAL (PROF. REGIONA L CENTRE,H.P.U,SHIMLA) for sparing time from their busy schedule for providing m e with their able guidance at the time of need and helping me to achieve the ult imate goal of the study. I would also like to thank MR. RAJ (Branch Manager, ICI CI Bank, Dharmshala) for their valuable support in helping me to gain this oppor tunity of being associated with an organization of such esteem. Last but not the least, it would be unfair if I don’t express my indebtness to my parents and all my friends for their active cooperation which was of great help during the course of my training project.

PREFACE In any organization, the two important financial statements are the Balance Shee t and Profit & Loss Account of the business. Balance Sheet is a statement of fin ancial position of an enterprise at a particular point of time. Profit & Loss ac count shows the net profit or net loss of a company for a specified period of ti me. When these statements of the last few year of any organization are studied a nd analyzed, significant conclusions may be arrived regarding the changes in the financial position, the important policies followed and trends in profit and lo ss etc. Analysis and interpretation of financial statement has now become an imp ortant technique of credit appraisal. The investors, financial experts, manageme nt executives and the bankers all analyze these statements. Though the basic tec hnique of appraisal remains the same in all the cases but the approach and the e mphasis in the analysis vary. A banker interprets the financial statement so as to evaluate the financial soundness and stability, the liquidity position and th e profitability or the earning capacity of borrowing concern. Analysis of financ ial statements is necessary because it helps in depicting the financial position on the basis of past and current records. Analysis of financial statements help s in making the future decisions and strategies. Therefore it is very necessary for every organization whether it is a financial or manufacturing, to make finan cial statement and to analyze it.

Table of content Sr. no. PARTICULARS Page no. Acknowledgement 3 Preface 4 1. Introduction Of Banking a. Introduction of banking…………………. b. History of banking in India……………… c. Banks in India…………………………… d. Fact files of banks in India……………… e. Indian banking industry…………………. 6-18 7 8 11 17 18 2. Company’s Profile a. Introduction to ICICI Bank…………

b. c. d. e. f. g. h. i. 21 27 28 29 30 31 32 34 54 3. a. b. c. d. e. f. g. h. 58 58 59 59 60 61 62 62 4. a. b. c. d. e. 1) 2) 3) 64 67 73 75 76 76 79 80

ICICI Bank today…………………… Business profile……………………... Board of directors…………………… Board committee……………………. Business objective…………………… Technology used in ICICI Bank…….. Products and services………………... Awards and recognition……………… 19-55

Research Methodology Objective of study…………………… Importance of study…………………. Meaning of research………………… Research problem…………………… Research design……………………... Data collection method……………… Analysis and interpretation of data….. Limitation of study………………….. 56-62

Financial Analysis Introduction of the topic………………. Method/Tools of financial analysis……. Balance sheet of ICICI Bank….. Profit and Loss Account of ICICI Bank…………………………….. Financial statement analysis…………… Comparative financial statement………………………. Trend analysis…………………. Ratio analysis………………….. 63-92

5. Findings , Suggestions And Conclusion………………………. 93-98

6. Bibliography………………………………………… 99-100 INTRODUCTION OF BANKING

Definition Of Bank: Banking Means "Accepting Deposits for the purpose of lending or Investment of de posits of money from the public, repayable on demand or otherwise and withdra w by cheque, draft or otherwise." -Banking Companies (Regulation) Act,1949

ORIGIN OF THE WORD “BANK”:The origin of the word bank is shrouded in mystery. According to one view point the Italian business house carrying on crude from of banking were called banchi bancheri" According to another viewpoint banking is derived from German word "Br anck" which mean heap or mound. In England, the issue of paper money by the gove rnment was referred to as a raising a bank. ORIGIN OF BANKING : Its origin in the simplest form can be traced to the origin of authentic history . After recognizing the benefit of money as a medium of exchange, the importance of banking was developed as it provides the safer place to store the money. Thi s safe place ultimately evolved in to financial institutions that accepts deposi ts and make loans i.e., modern commercial banks. Banking system in India Without a sound and effective banking system in India it cannot have a healthy e conomy.The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external an d internal factors. For the past three decades India s banking system has several outstanding achiev ements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian bankin g system has reached even to the remote corners of the country. This is one of t he main reasons of India s growth process. HISTORY OF BANKING IN INDIA Banking in India has its origin as early or Vedic period. It is believed that th e transitions from many lending to banking must have occurred even before Manu, the great Hindu furriest, who has devoted a section of his work to deposit and a dvances and laid down rules relating to the rate of interest. During the mogul p eriod, the indigenous banker played a very important role in lending money and f inancing foreign trade and commerce. During the days of the East India Company it was the turn of agency house to car ry on the banking business. The General Bank of India was the first joint stock

 

 

bank to be established in the year 1786. The other which followed was the Bank o f Hindustan and Bengal Bank. The Bank of Hindustan is reported to have continued till 1906. While other two failed in the meantime. In the first half of the 19t h century the East India Company established there banks, The bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843. These three bank s also known as the Presidency banks were the independent units and functioned w ell. These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India was established on 27th January, 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the I mperial Bank of India was taken over by the newly constituted SBI. The Reserve B ank of India (RBI) which is the Central bank was established in April, 1935 by p assing Reserve bank of India act 1935. The Central office of RBI is in Mumbai an d it controls all the other banks in the country. In the wake of Swadeshi Movement, number of banks with the Indian management we re established in the country namely, Punjab National Bank Ltd., Bank of India L td., Bank of Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country were nationalized and on 15th April 1980, 6 more commercial private sector banks were taken over by the government. The first bank in India, though conservative, was established in 1786. From 1786 till today,the journey of Indian Banking System can be segregated into three di stinct phases. They areas mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Re forms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III. Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindust an and Bengal Bank. The East India Company established Bank of Bengal (1809), Ba nk of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was establ ished which started as private shareholders banks, mostly Europeans shareholders . In 1865 Allahabad Bank was established and njab National Bank Ltd. was set up in 1894 1906 and 1913, Bank of India, Central Bank , Indian Bank, and Bank of Mysore were set 5. first time exclusively by Indians, Pu with headquarters at Lahore. Between of India, Bank of Baroda, Canara Bank up. Reserve Bank of India came in 193

During the first phase the growth was very slow and banks also experienced perio dic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Gov ernment of India came up with The Banking Companies Act, 1949 which was later ch anged to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervisio

n of banking in India as the Central Banking Authority. During those day’s public has lesser confidence in the banks. As an aftermath depo sit mobilization was slow. Abreast of it the savings bank facility provided by t he Postal department was comparatively safer. Moreover, funds were largely given to traders. Phase II Government took major steps in this Indian Banking Sector Reform after independe nce. In1955, it nationalized Imperial Bank of India with extensive banking facil ities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transa ctions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 o n 19th July,1969, major process of nationalization was carried out. It was the e ffort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commerci al banks in the country was nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in Indi a under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949: 1955: 1959: 1961: 1969: 1971: 1975: 1980: Enactment of Banking Regulation Act. Nationalization of State Bank of India. Nationalization of SBI subsidiaries. Insurance cover extended to deposits. Nationalization of 14 major banks. Creation of credit guarantee corporation. Creation of regional rural banks. Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000% . Banking in the sunshine of Government ownership gave the public implicit faith a nd immense confidence about the sustainability of these institutions. Phase III This phase has introduced many more products and facilities in the banking secto r in its reforms measure. In 1991, under the chairmanship of M Narasimham, a com mittee was set up by his name which worked for the liberalization of banking pra ctices. The country is flooded with foreign banks and their ATM stations. Efforts are be ing put to give a satisfactory service to customers. Phone banking and net banki ng is introduced. The entire system became more convenient and swift. Time is gi ven more importance than money. The financial system of India has shown a great deal of resilience. It is shelte red from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, t he foreign reserves are high, the capital account is not yet fully convertible,

and banks and their customers have limited foreign exchange exposure

BANKS IN INDIA In India the banks are being segregated in different groups. Each group has thei r own benefits and limitations in operating in India. Each has their own dedicat ed target market. Few of them only work in rural sector while others in both rur al as well as urban. Many even are only catering in cities. Some are of Indian o rigin and some are foreign players. All these details and many more is discussed over here. The banks and its relati on with the customers, their mode of operation, the names of banks under differe nt groups and other such useful information’s are talked about. One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the exi sting one recently. This step has paved a way for few more foreign banks to star t business in India.

BANKING STRUCTURE IN INDIA SCHEDULED BANKS IN INDIA (1) Scheduled Commercial Banks

Public Sector Banks Private Sector Banks Foreign Banks In India Regional Rural Banks (26) (25) Nationalized Bank Other Public Sector Banks (IDBI) SBI And Its Associates Old Private Banks New Private Banks (29) (95)

(2) Scheduled Cooperative Banks Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks Public Sector Banks Public sector banks are those banks which are owned by the Government. The Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also nationalized. Therefore in 1980 the number of nationalized b ank 20. At present there are total 26 Public Sector Banks in India (As on 26-092009). Of these 19 are nationalized banks, 6(STATE BANK OF INDORE ALSO MERGED RE CENTLY) belong to SBI & associates group and 1 bank (IDBI Bank) is classified as other public sector bank. Welfare is their primary objective. Nationalised banks

• • • • • • • • • • • • • • • • • • •

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

IDBI (Industrial Development Bank Of India)Ltd. SBI & its Associates • • • • • • State Bank of India State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore State Bank of Bikaner And Jaipur

(State Bank of Saurastra merged with SBI in the year 2008 and State Bank of Indo re In 2010)

Private Sector Banks These banks are owned and run by the private sector. Various banks in the countr y such as ICICI Bank, HDFC Bank etc. An individual has control over there ban ks in preparation to the share of the banks held by him. Private banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in I ndia was IndusInd Bank. It is one of the fastest growing Bank Private Sector Ba nks in India. IDBI ranks the tenth largest development bank in the world as Priv ate Banks in India and has promoted world class institutions in India.

The first Private Bank in India to receive an in principle approval from the Res erve Bank of India was Housing Development Finance Corporation Limited, to set u p a bank in the private sector banks in India as part of the RBI s liberalizatio n of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Ban k Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995. Private sector banks have been subdivided into following 2 categories:Old Private Sector Banks Bank of Rajasthan Ltd. Catholic Syrian Bank Ltd. City Union Bank Ltd. Dhanalakshmi Bank Ltd. Federal Bank Ltd. ING Vysya Bank Ltd. Jammu and Kashmir Bank Ltd. Karnataka Bank Ltd. Karur Vysya Bank Ltd. Lakshmi Vilas Bank Ltd. Nainital Bank Ltd. Ratnakar Bank Ltd. SBI Commercial and International Bank Ltd. South Indian Bank Ltd. Tamilnad Mercantile Bank Ltd. United Western Bank Ltd. New Private Sector Banks Bank of Punjab Ltd. (since merged with Centurian Bank) Centurian Bank of Punjab (since merged with HDFC Bank) Development Credit Bank Ltd. HDFC Bank Ltd. ICICI Bank Ltd. IndusInd Bank Ltd. Kotak Mahindra Bank Ltd. Axis Bank (earlier UTI Bank) Yes Bank Ltd.

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Foreign Banks In India

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

 

Deutsche Bank HSBC (Hongkong & Shanghai Banking Corporation) JPMorgan Chase Bank Krung Thai Bank Mashreq Bank Mizuho Corporate Bank Oman International Bank Shinhan Bank Société Générale Sonali Bank Standard Chartered Bank State Bank of Mauritius

Cooperative banks in India The Cooperative bank is an important constituent of the Indian Financial System, judging by the role assigned to co operative, the expectations the co operative is supposed to fulfil, their number, and the number of offices the cooperative bank operate. Though the co operative movement originated in the West, but the i mportance of such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks in India plays an important role even toda y in rural financing. The businessess of cooperative bank in the urban areas als o has increased phenomenally in recent years due to the sharp increase in the nu mber of primary co-operative banks. Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Ban king Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. Rural banks in India Rural banking in India started since the establishment of banking sector in Indi a. Rural Banks in those days mainly focused upon the agro sector. Regional rural banks in India penetrated every corner of the country and extended a helping ha nd in the growth process of the country. SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The total number of SBIs Regional Rural Banks in India branches i s 2349 (16%). Till date in rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote rural areas. Apart from SBI, there are other few banks which functions for the development of the rural areas in India. Few of them are as follows. Haryana State Cooperative Apex Bank Limited The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays a vital role in rural banking in the economy of Haryana State and has been provi

ding aids and financing farmers, rural artisans, agricultural labourers, entrepr eneurs, etc. in the state and giving service to its depositors.

NABARD National Bank for Agriculture and Rural Development (NABARD) is a development ba nk in the sector of Regional Rural Banks in India. It provides and regulates cre dit and gives service for the promotion and development of rural sectors mainly agriculture, small scale industries, cottage and village industries, handicrafts . It also finance rural crafts and other allied rural economic activities to pr omote integrated rural development. It helps in securing rural prosperity and it s connected matters. Sindhanur Urban Souharda Co-operative Bank Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the first of its kind in rural banks of India. The impressive story of its inception is interesting and inspiring for all the youth of this country. United Bank of India United Bank of India (UBI) also plays an important role in regional rural banks. It has expanded its branch network in a big way to actively participate in the developmental of the rural and semi-urban areas in conformity with the objective s of nationalisation. Syndicate Bank Syndicate Bank was firmly rooted in rural India as rural banking and have a clea r vision of future India by understanding the grassroot realities. Its progress has been abreast of the phase of progressive banking in India especially in rura l banks.

Fact Files of Banks in India The first Bank in India to be given an ISO certification. Canara Bank The first Bank in Northern India to get ISO 9002 certification

for their selected branches. Punjab and Sind Bank The first Indian Bank to have been started solely with Indian capital. Punjab National Bank The first among the Private Sector Banks in Kerala to become Scheduled Bank in 1 946 under the RBI act. South Indian Bank India’s oldest,largest and the most successful commercial bank offering the widest possible rang of domestic,international and NRI products and services,through i ts vast network in India and overseas. State Bank of India India’s second largest Private Sector Bank and is now the largest scheduled commer cial bank in India. The Federal Bank Limited Bank which started as Private Shareholders Banks,mostly European shareholders. Imperial Bank of India The first Indian Bank to open a branch outside India in London in 1946 and the f irst to open a branch in continental Europe at Paris in 1974 Bank of India, founded in 1906 in Mumbai. The oldest Public Sector Bank in India having branches all over India and servin g the customers for the last 132 years. Allahabad Bank The first Indian Commercial Bank which was wholly owned and managed by Indians. Central Bank of India

INDIAN BANKING INDUSTRY The Indian banking market is growing at an astonishing rate, with Assets expecte d to reach US$1 trillion by 2010. An expanding economy, middleclass, and techno logical innovations are all contributing to this growth. The country’s middle class accounts for over 320 million People. In correlation wi th the growth of the economy, rising income levels, increased standard of living , and affordability of banking products are promising factors for continued expa nsion.

The Indian banking Industry is in the middle of an IT revolution, Focusing on th e expansion of retail and rural banking. Players are becoming increasingly custo mer -centric in their approach, which has resulted in innovative methods of offe ring new banking products and services. Banks are now realizing the importance o f being a big playerand are beginning to focus their attention on mergers and ac quisitions to take advantage of economies of scale and/or comply with Basel II r egulation.“Indian banking industry assets are expected to reach US$1 trillion by 2 010 and are poised to receive a greater infusion of foreign capital,” says Prathim a Rajan, analyst in Celent s banking group and author of the report. “The banking industry should focus on having a small number of large players that can compete globally rather than having a large number of fragmented players.

COMPANY’S PROFILE

Type Private BSE & NSE: ICICI, NYSE: IBN Industry Banking Insurance Capital Markets and allied industries Founded 1955 (as Industrial Credit and Investment Corporation of India)

 

Headquarters ICICI Bank Ltd., ICICI Bank Towers, Bandra Kurla, Mumbai, India

Key people K.V. Kamath,Chairman Chanda Kochhar, Managing Director & CEO Sandeep Bakhshi, Deputy Managing Director N.S. Kannan, Executive Director & CFO K. Ramkumar, Executive Director Sonjoy Chatterjee, Executive Director Products Loans, Credit Cards, Savings, Investment vehicles, Insurance etc. Total assets `INR 4,062.34 billion (at March 31, 2011.) Website www.icicibank.com

INTRODUCTION TO ICICI BANK History Of ICICI 1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and re presentatives of Indian industry, with the objective of creating a development f inancial institution for providing medium-term and long-term project financing t o 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 In dian industry. Besides funding from the World Bank and other multi-lateral agenc ies, ICICI was also among the first Indian companies to raise funds from interna tional markets. 1956 : ICICI declared its first dividend of 3.5%. 1958 : Mr. G.L. Mehta appointed the second Chairman of ICICI Ltd.

1960 : ICICI building at 163, Backbay Reclamation, inaugurated. 1961 : The first West German loan of DM 5 million from Kredianstalt obtained. 1967 : ICICI made its first debenture issue for Rs.6 crore, which was oversubscr ibed. 1969 : The first two regional offices in Calcutta and Madras set up. 1972 : The second entity in India to set up merchant banking services. : Mr. H. T. Parekh appointed the third Chairman of ICICI. 1977 : ICICI sponsored the formation of Housing Development Finance Corporation. Managed its first equity public issue. 1978 : Mr. James Raj appointed the fourth Chairman of ICICI. 1979 : Mr.Siddharth Mehta appointed the fifth Chairman of ICICI. 1982 : 1982 : ICICI became the first ever Indian borrower to raise European Curr ency Units. : ICICI commences leasing business. 1984 : Mr. S. Nadkarni appointed the sixth Chairman of ICICI. 1985 : Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICIC I. 1986 : ICICI became the first Indian institution to receive ADB Loans. : ICICI, along with UTI, set up Credit Rating Information Services of India Limited, Indi a s first professional credit rating agency. : ICICI promotes Shipping Credit an d 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 enti ty in the Swiss Capital Market. 1987 : ICICI signed a loan agreement for Sterling Pound 10 million with Commonwe alth Development Corporation (CDC), the first loan by CDC for financing projects in India. 1988 : Promoted TDICI - India s first venture capital company. 1993 : ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up. : ICICI Asset Management Company set up. 1994: ICICI established Banking Corporation as a banking subsidiary.formerly Ind ustrial Credit and Investment Corporation of India. Later, ICICI Banking Corpora tion was renamed as ICICI Bank Limited . ICICI founded a separate legal entity, ICICI Bank, to undertake normal banking operations - taking deposits, credit ca rds, car loans etc. 1996 : ICICI Ltd became the first company in the Indian financial sector to rais e GDR. : SCICI merged with ICICI Ltd. : Mr. K.V.Kamath appointed the Managing Di rector and CEO of ICICI Ltd 1997 : ICICI Ltd was the first intermediary to move away from single prime rate to three-tier prime rates structure and introduced yield-curve based pricing. : The name The Industrial Credit and Investment Corporation of India Ltd changed t o ICICI Ltd. : ICICI Ltd announced the takeover of ITC Classic Finance. 1998 : Introduced the new logo symbolizing a common corporate identity for the I CICI Group. : ICICI announced takeover of Anagram Finance. 1999 : ICICI launched retail finance - car loans, house loans and loans for cons umer durables. : ICICI becomes the first Indian Company to list on the NYSE thro ugh an issue of American Depositary Shares. 2000 : ICICI Bank became the first commercial bank from India to list its stock on NYSE. 2001: ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar b ank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (es tablished 1904) in the 1960s. In October 2001, the Boards of Directors of ICIC I and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capit al Services Limited, with ICICI Bank. 2002 : The merger was approved by shareholders of ICICI and ICICI Bank in Januar y 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. Cons equent to the merger, the ICICI group s financing and banking Operations, both w holesale and retail, have been integrated in a single entity. At the same time,

 

 

 

 

 

ICICI started its international expansion by opening representative offices in N ew York and London. In India, ICICI Bank bought the Shimla and Darjeeling branch es that Standard Chartered Bank had inherited when it acquired Grindlays Bank. 2003 : The first Integrated Currency Management Centre launched in Pune. ; ICICI Bank announced the setting up of its first ever offshore branch in Singapore. ; The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai, l aunched. ; ICICI Bank’s representative office inaugurated in Dubai. ; Representati ve office set up in China. : ICICI Bank’s UK subsidiary launched. ; India’s first ev er "Visa Mini Credit Card", a 43% smaller credit card in dimensions launched. ; ICICI Bank subsidiary set up in Canada. ; Temasek Holdings acquired 5.2% stake i n ICICI Bank. ; ICICI Bank became the market leader in retail credit in India. I n the UK it established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai . 2004 : Max Money, a home loan product that offers the dual benefit of higher eli gibility and affordability to a customer, introduced. : Mobile banking service i n India launched in association with Reliance Infocomm. : India’s first multi-bran ded credit card with HPCL and Airtel launched. : Kisan Loan Card and innovative, low-cost ATMs in rural India launched. : ICICI Bank and CNBC TV 18 announced In dia’s first ever awards recognizing the achievements of SMEs, a pioneering initiat ive to encourage the contribution of Small and Medium Enterprises to the growth of Indian economy. : ICICI Bank opened its 500th branch in India. : ICICI Bank i ntroduced partnership model wherein ICICI Bank would forge an alliance with exis ting 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. : ICIC I 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 c oncept of floating rate for home loans in India. At the same time, ICICI opened a representative office in Bangladesh to tap the extensive trade between that co untry, India and South Africa. 2005 : First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hard oi. ; "Free for Life" credit cards launched wherein annual fees of all ICICI Ban k Credit Cards were waived off. ; ICICI Bank and Visa jointly launched mChq – a re volutionary credit card on the mobile phone. ; Private Banking Masters 2005, a n ationwide Golf tournament for high networth clients of the private banking divis ion launched. This event is the largest domestic invitation amateur golf event c onducted in India. ; First Indian company to make a simultaneous equity offering of $1.8 billion in India, the United States and Japan. ; ICICI acquired Investi tsionno-Kreditny Bank (IKB), a Russia bank with about US$4mn in assets, head off ice in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI renam ed the bank ICICI Bank Eurasia. Also, ICICI established a branch in Dubai Intern ational Financial Centre and in Hong Kong.ICICI Bank became the largest bank in India in terms of its market capitalization. ; ICICI Bank became the first priva te entity in India to offer a discount to retail investors for its follow-up off er. 2006 : ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets. : ICICI Bank subsidiary set up in Russia. ; I ntroduced a new product - ‘NRI smart save Deposits’ – a unique fixed deposit scheme fo r nonresident Indians. : Representative offices opened in Thailand, Indonesia an d Malaysia. ; ICICI Bank UK opened a branch in Antwerp, in Belgium ; ICICI Bank became the largest retail player in the market to introduce a biometric enabled smart card that allow banking transactions to be conducted on the field. A low-c ost solution, this became an effective delivery option for ICICI Bank’s micro fina nce institution partners. ; Financial counseling centre Disha launched. Disha pr ovides free credit counseling, financial planning and debt management services.

; Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh. 2007 : ICICI Bank‘s USD 2 billion 3-tranche international bond offering was the la rgest bond offering by an Indian bank. ; ICICI amalgamated Sangli Bank, which wa s headquartered in Sangli, in Maharashtra State, and which had 158 branches in M aharashtra and another 31 in Karnataka State. Sangli Bank had been founded in 19 16 and was particularly strong in rural areas. With respect to the international sphere, ICICI also received permission from the government of Qatar to open a b ranch in Doha. Also, ICICI Bank Eurasia opened a second branch, this time in St. Petersburg. ; ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both d omestic and international markets through a follow-on public offer. ; ICICI Bank’s GBP 350 million international bond offering marked the inaugural deal in the st erling market from an Indian issuer and also the largest deal in the sterling ma rket from Asia. ; Launched India’s first ever jewellery card in association with j ewelry major Gitanjali Group. ; ICICI Bank became the first bank in India to lau nch a premium credit card -- The Visa Signature Credit Card. ; Foundation stone laid for a regional hub in Gandhinagar, Gujarat. ; Introduced SME Toolkit, an on line resource centre, to help small and medium enterprises start, finance and gr ow their business. ; ICICI Bank signed a multi-tranche dual currency US$ 1.5 bil lion syndication loan agreement in Singapore. ; ICICI Bank became the first priv ate bank in India to offer both floating and fixed rate on car loans, commercial vehicles loans, construction equipment loans and professional equipment loans. ; In a first of its kind, nation wide initiative to attract bright graduate stud ents to pursue a career in banking, ICICI Bank launched the "Probationary Office r Programme". ;Launched [email protected] services for all savings and current a/c custo mers residing in India ; ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia. 2008 : ICICI Bank enters US The US Federal Reserve permitted ICICI to convert it s representative office in New York into a branch.; ICICI Bank enters Germany, o pens its first branch in Frankfurt ; ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all internet banking transactions can n ow be simply done on mobile phones. ; ICICI Bank concluded India s largest ever securitization transaction of a pool of retail loan assets aggregating to Rs. 48 .96 billion (equivalent of USD 1.21 billion) in a multi-tranche issue backed by four different asset categories. It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) sin ce the beginning of 2007. ; ICICI Bank launches ICICIACTIVE - Banking Interactiv e 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 Airway s flight or by spending on everyday purchases. 2009: ICICI Bank Board appoints Mr K. V. Kamath as non-executive Chairman and M s Chanda Kochhar as Managing Director & CEO effective May 1, 2009, while the exi sting non-executive Chairman Mr N Vaghul retires after completing his term on Ap ril 30, 2009 ; ICICI bank ties up with BSNL Cell One for bill payments, it will facilitate bill payment for BSNL Cell One users through www.icicibank.com acros s all the 27 circles of BSNL. ; ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed an agreement on Export Credit Line totaling up to US$ 100 million with the Japan Bank for International Cooperation (JBIC) which const itutes the international wing of Japan Finance Corporation. ; ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed a loan agreement with t he Export-Import Bank of China (China Exim) for USD 98 million under the Two- st ep Buyer Credit (Export Credit) arrangement. ICICI Bank is the first Indian Bank to have entered into this arrangement with China Exim ; ICICI Bank with Singapo re Airlines launched “ICICI Bank Singapore Airlines Visa Platinum Credit Card”, the Card has exclusive privileges especially designed for the members. ; ICICI Bank announced an association with mChek, India’s leading mobile payment solutions prov

 

 

ider, to facilitate mChek services to all ICICI Bank Debit and Credit Card custo mers. These are electronic cards issued to the customers with mChek application on their mobile phone. ; Ms Chanda Kochhar took charge as the Managing Director & CEO of ICICI Bank from May 1, 2009. ICICI BANK TODAY ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation o f India) is India s largest private sector bank by market capitalisation and sec ond largest overall in terms of assets. Trotal assets of Rs. 3,562.28 billion (U S$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the nine months ended December 31, 2009. The Bank also has a network of 1,640+ branches (as on February 11, 2010) and about 4,721 ATMs in Ind ia and presence in 18 countries, as well as some 24 million customers (at the en d of July 2007). ICICI Bank offers a wide range of banking products and financia l services to corporate and retail customers through a variety of delivery chann els and specialised subsidiaries and affiliates in the areas of investment banki ng, life and non-life insurance, venture capital and asset management. (These da ta 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 a nd Vadodara, Mumbai and the National Stock Exchange of India Limited, and its AD Rs on the New York Stock Exchange (NYSE). The Bank is expanding in overseas mark ets and has the largest international balance sheet among Indian banks. ICICI Ba nk now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned sub sidiaries in Canada, Russia and the UK (the subsidiary through which the HiSAVE savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and repr esentative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thai land, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular. ICICI reported a net profit of Rs. 3,758 crore (US$ 741 million) for FY2009. Th e bank s Current and savings account (CASA) ratio increased to 28.7% at March 31 , 2009 from 26.1% at March 31, 2008. Increase of Rs. 5,286 crore in CASA deposit s in quarter ended March 31,2009. ICICI Bank is one of the Big Four Banks of India with State Bank of India, Axis Bank and HDFC Bank ICICI Bank Group BUSINESS PROFILE Products & Services Personal Banking • Deposits • Loans • Cards • Investments • Insurance • Demat Services • Wealth Management NRI Banking • Money Transfer • Bank Accounts • Investments • Property Solutions • Insurance • Loans Business Banking

 

 

• Corporate Net Banking • Cash Management • Trade Services • FXOnline • SME Services • Online Taxes • Custodial Services Head Office ICICI Bank 9th Floor, South Towers ICICI Towers Bandra Kurla Complex Bandra (E) Mumbai. Phone: 91-022-653 7914 Website: www.icicibank.com Capital structure The Authorized Capital of ICICI Bank is 214.75 Crores. The Issued, Subscribed an d Paid Up Capital is divided into 1113250642 equity shares @ Rs.10/- each. Board of Directors Board Members Mr. K. V. Kamath, Chairman .................................................... Mr. Sridar Iyengar .................................................... Mr. Homi R. Khusrokhan .................................................... Mr. Lakshmi N. Mittal ................................................ Mr. Narendra Murkumbi ................................................. Dr. Anup K. Pujari ................................................. Mr. Anupam Puri .................................................. Mr. M.S. Ramachandran .................................................. Mr. M.K. Sharma .................................................. Mr. V. Sridar Prof. Marti G. Subrahmanyam ......................................................... Mr. V. Prem Watsa ......................................................... Ms. Chanda D. Kochhar, Managing Director & CEO ......................................................... Mr. Sandeep Bakhshi, Deputy Managing Director ......................................................... Mr. N. S. Kannan, Executive Director & CFO ......................................................... Mr. K. Ramkumar, Executive Director ......................................................... Mr. Sonjoy Chatterjee, Executive Director

Board committee Audit Committee Board Governance Remuneration & Nomination Committee Mr. Sridar Iyengar, Chairman Mr. M. K. Sharma, Alternate Chairman Mr. Narendra Murkumbi Mr. V. Sridar Mr. M. K. Sharma, Chairman Mr. K. V. Kamath Mr. Anupam Puri Prof. Marti G. Subrahmanyam Corporate Social Responsibility Committee Customer Service Committee Mr. M. K. Sharma, Chairman Dr. Anup K. Pujari Ms. Chanda D. Kochhar Mr. K. V. Kamath, Chairman Mr. Narendra Murkumbi Dr. Anup K. Pujari Mr. M. S. Ramachandran Mr. M.K. Sharma Ms. Chanda D. Kochhar Credit Committee Fraud Monitoring Committee Mr. K. V. Kamath, Chairman Mr. Narendra Murkumbi Mr. M. S. Ramachandran Mr. M .K. Sharma Ms. Chanda D. Kochhar Mr. M. K. Sharma, Chairman Mr. K. V. Kamath Mr. Narendra Murkumbi Ms. Chanda D. Kochhar Mr. Sandeep Bakhshi Risk Committee Share Transfer & Shareholders / Investors Grievance Committee Mr. K. V. Kamath, Chairman Mr. Sridar Iyengar Dr. Anup K. Pujari Prof. Marti G. Subrahmanyam Mr. V. Prem Watsa Ms. Chanda D. Kochhar Mr. M. K. Sharma, Chairman Mr. Narendra Murkumbi Mr. N. S. Kannan Committee of Executive Directors Ms. Chanda D. Kochhar, Chairperson Mr. Sandeep BakhshiMr. N. S. Kannan Mr. K. Ramkumar Mr. Sonjoy Chatterjee BUSINESS OBJECTIVE Vision To be the leading provider of financial services in India and a major global ban k. Mission

 

 

• We will leverage our people, technology, speed and financial capital to: be th e banker of first choice for our customers by delivering high quality, world-cla ss service. • Expand the frontiers of our business globally. • Play a proactive role in the full realisation of India’s potential. • Maintain a healthy financial profile and diversify our earnings across businesse s and geographies. • Maintain high standards of governance and ethics. • Contribute positively to the various countries and markets in which we operate. • Create value for our stakeholders.

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 banki ng, mobile banking electronic display sy ICICI Bank was using Teradata for its data warehouse. However, due to its proprietary hardware, the cost of procurement, up grades and administration was soaring. The closed box architecture of Teradata i mposed restrictions on scalability. Secondly, querying and loading could not hap pen 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 da ta. ICICI Bank was also dependent on Teradata for support and other activities: The bank was completely tied down to that solution. These issues compelled ICICI Bank to look for more efficient and flexible solut ions. The solution would have to address not only current issues, but accommodat e future growth expectations and business requirements. ICICI Bank evaluated num erous data warehousing solutions in the pursuit of solving its issues, and devel oped a shortlist of alternatives for its migration proof-of-concept: Sybase, SAS and Netezza. The primary criteria for evaluation was the price-to-performance r atio where Sybase IQ emerged the clear winner. During this rigorous testing, Syb ase IQ delivered faster results on independent hardware and operating systems wi th minimum infrastructure. Commending the improvements achieved, Amit Sethi, Joi nt General Manager, ICICI bank says, "What impressed us wasthat even with overal l lower costs, we could achieve significantly better query performanceafter impl ementing the Sybase enterprise warehouse solution." ICICI Infotech today launche d an enterprise resourceplanning (ERP) solution for the small and medium enterpr ises. The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a 15-user license. An ERP package helps a manufacturer or any other business implementing it to man age all the important parts in the company such as product planning, parts purch asing, maintaining inventory and interacting with suppliers and customers. ICICI Infotech officials told a press conference here today that Orion Advantag e offered a set of business practice solutions for industry segments such as eng ineering, auto ancillary, pharmaceuticals, chemicals and IT distribution. Beside s the cost advantage, the ERP package also came pre-configured. ICICI Infotech h

ad mapped the processes specific to each industry segment into the package. Mr. Manoj Kunkalienkar, Executive Director and President, ICICI Infotech, said t hat smalland medium enterprises (SMEs) offered a good market and ICICI Infotech hoped to become a leading solution provider to this segment. Mr. R.K. Kanthi, Deputy General Manager, ICICI Infotech, said there was no ERP p ackagefor the SMEs that bundled the server, database and operating system right now. That was the advantage ICICI Infotech offered to SMEs as Orion Advantage ca me bundled and preconfigured. Besides the high cost of generic ERP packages, the ir implementation time as far as SMEs were concerned was also long. Orion Advant age could be installed in 45 days. ICICI Infotech had signed up six customers so far for the package and hoped to g arner a 15 per cent market share of the SME segment, whose number in the country was estimated at 2.30 lakh. Mr. K.S. Natarajan, Managing Director, Trident Pneumatics Pvt Ltd of Coimbatore , one of the companies that had installed Orion Advantage, said that the company had tried three other ERP packages, all of which had failed, before settling on Orion Advantage. Mr Kunkalienkar said that ICICI Infotech planned to move the two development ce nters in Chennai into a single location and double the staff strength from 300 n ow in the next two years. The Chennai centers were involved in research and development of Orion ERP solut ions and Premia, an insurance package. We can see that the how technology gives the best results in the below diagram. There are drastically changes seen in the use of Internet banking, in a year 200 1 (2%) and in the year 2008 (25%). These type of technology gives the freedom to retail customers. Centralized Processing Units Derived Economies Of Scale Electronic Straight through Processing Reduced Transaction Cost Data Warehousing,CRM Improve Cost Efficiency,Cross Sell Innovative Technology Application Provide New Or Superior Products The country’s middle class accounts for over 320 million people. In correlation wi th the growth of the economy, rising income levels, increased standard of living , and affordability of banking products are promising factors for continued expa nsion. PRODUCTS AND SERVICES PERSONAL BANKING Loan Product Deposit Product Investment & Insurance • Auto loan • Loan against security • Loan against property • Personal loan • Credit card • 2- wheeler loan • Commercial vehicles finance

• • • • • • • • • • • • • • • • • • • Cards • • •

Home loans Retail business banking Tractor loan Working capital finance Construction Equipment finance Health care finance Education loan Gold loan • Savings A/C Current A/C Fixed Deposits Demat A/C Safe Deposit Lockers • Mutual Funds Bonds Knowledge Centre Insurance General And Health Insurance Equity And Derivatives Mudra Gold Bar Payment Services Access To Bank Credit Card Debit Card Prepaid Card

-------------------------------Forex services -------------------------------• Product And Services • Trade Services • Forex Service Branch Locater • RBI Guidelines • Net Safe • Merchant • Prepaid Refill • Bill Pay • Visa Bill Pay • Direct Pay • Visa Money Transfers • E-Monies Electronic Funds Transfer • Online Payment Of Direct Tax • • One View • Insta Alert Mobile Banking • ATM • Phone Banking • Email Statements • Branch Network WHOLESALE BANKING

Net Banking

Corporate Small and Medium Enterprises Financial Institutions and Trusts • • • • Funded Services Non Funded Services Value Added Services Internet Banking

• • • • • BANKS • • • • • •

Funded Services Non Funded Services Specialized Services Value Added Services Internet Banking Clearing Sub-Membership RTGS Sub-Membership Fund Transfer ATM Tie- Ups Corporate Salary A/C Tax Collection

Financial Institutions Mutual Funds Stock Brockers Insurance Companies Commodities Business Trusts

NRI SERVICES Accounts & Deposits Remittances • Rupee Saving A/C • Rupee Current A/C • Rupee Fixed Deposits • Foreign Currency Deposits • Accounts For Returning Indians • North America • Uk • Europe • South East Asia • Middle East • Africa • Others

Quick Remit India Link Check Lock Box Telegraphic/ Wire Transfer Fund Transfer Cheques/Dds/Tcs Investment & Insurances • • • • • • • Loans Mutual Funds Insurance Private Banking Portfolio Investment Scheme Loans Against Securities Loans Against Deposits Gold Card Credit



Home Loans

Payment Services Access • • • • • • • • • • • • To Bank Net Safe Bill Pay InstaPay DirectPay VisaMoney Online Donation • One View InstaAlert ATM Phone Banking Email Statements Branch Networks

Net Banking

PRODUCTS ICICI Bank offers wide variety of Deposit Products to suit your requirements. Co upled with convenience of networked branches/ ATMs and facility of E-channels l ike Internet and Mobile Banking, ICICI Bank brings banking at your doorstep. Sel ect any of its deposit products and provide your details online and their repres entative will contact you for Account Opening. SAVING ACCOUNTS ICICI Bank offers customers a power packed Savings Account with a host of conven ient features and banking channels to transact through. So now customers can ban k at their convenience, without the stress of waiting in queues.

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

ed entities. “LIFE PLUS” Senior citizens savings account LIFE PLUS ,a special savings account for senior citizens from ICICI Bank is pack ed with a host of benefits, designed keeping your unique financial requirements in mind. • Special senior citizens desk to cater to all banking transactions, so that you d on’t wait in queues. • Higher interest rate on FD/RD: avail the combined benefits of safety, flexibili ty 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, an ywhere and from any place, including branches , ATMs and phone banking. • Nomination facility available. • Quarterly average balance (QAB) requirement of Rs.5000. • Quarterly physical statements are delivered to your doorstep to absolutely free of cost. • Passbook on request. Young Stars Account: Young Stars is a banking service for children, aged 1day -18 years, brought to y ou by ICICI Bank to help the parents meet the present and future aspirations tha t they hold for their child. It offers various savings and investment options to the parent along with teaching the child to manage his/her personal finance in a more responsible and independent manner.Young Stars will guide your child thro ugh the world of banking -through checking the account balance, fun zones and sp ecial pages on the internet. It makes banking a pleasure and of course teaches y our child to manage their personal finances.With the pocket money that you trans fer to your child s account, you can even shop with him / her at Young Stars ver y own shopping page. You can even open a recurring deposit in your child s name. Once you are done with your banking , you can access your child s account with all the fun links to special zones designed to suit your child s area of interes ts and also impart knowledge on the current events of the world. Advantage woman savings account The ICICI Bank Advantage Woman Account enables today’s independent women to enjoy hassle-free banking services. Besides the core ICICI Bank advantage, the Advanta ge Woman Savings Account is packed with special benefits for our women customers . Enjoy your present and plan for the future with ICICI Bank’s Advantage Woman Sav ings Account. Advantage Woman offers a specially designed woman s debit card whi ch helps you shop and save simultaneously, manages your household expenditures a nd comes with a bag full of offers attached to it. • Special International Woman’s Debit Card with lots of offers. • Free unlimited access to any bank’s ATM. • Bill Pay facility & Multi Channel Access. • Payable-at-par cheque book. • Nomination facility available. • Zero balance facility with an RD of Rs.2000 or Quarterly Average Balance (QAB) r equirement of Rs. 10,000. Current Accounts: Every business requires efficient banking facilities to support its business act ivities. ICICI Bank offers premium quality service, unfolding a wide array of cl ass products. With technology leadership and service the bank is able to meet s ome of the most challenging financial needs of clients.A Current Account is one

 

 

 

 

 

 

 

that is required by Businessman, Joint stock companies, Institutions, Public aut horities, public corporations etc. Any business that has numerous banking tranac tions need a current account as it • Allows running account supporting unlimited withdrawals and deposits. • Is meant for convenience and not to save money. Roaming Current Account Only Roaming Current Account from ICICI Bank travels the distance with customers business. With advanced technological features such as MCC and LCC, banking nee ds are well taken care of, customers can access their accounts at over 500 netwo rked branches across the country. So while customers take care of their business, ICICI Bank’s Roaming Current Accou nt simplifies banking for them. Salary Accounts • Salary Account is a feature rich corporate payroll account with benefits for bot h corporates and its employees. The process of drawing cheques for salaries is r eplaced by sending a single ASCII file to the bank and the amount is directly cr edited into the employees salary account . • Cuts down payroll processing workload • Salary Account can be opened with minimum 10 employees Instant credit of salarie s ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Em ployees. As an organization, you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy numerous other benefits too.With ICICI Bank Salary Accounts your employees will enjoy the convenience of : • Having the largest network of ATMs at their command, • Free 24 hour Phone Banking, • Free Internet Banking. All that the organization would require to do is to send ICICI Bank an advice (i n form of a cheque /debit instruction, ecs, etc) for the total salary amount alo ng with the salary details of the designated employees in a soft and hard copy f ormat and we will credit the respective employees accounts as per your statemen t of advice. ICICI Bank Salary Accounts benefits you in more than one ways:• Reduces paperwork. • Saves remittance costs. Employees receive instant credit of salaries. More convenient than ECS. Besides all of the above, employees automatically become ICICI Bank account holders with special benefits and privileges of 8-8 banking, Investment advisory and much mo re... Fixed deposits: Fixed deposits are options which help you grow your money thus creating wealth i n a safer and secure way. ICICI provides its customers with various kinds of Fixed deposit facilities that are flexible and cater to customers who have different needs and wants in their fixed deposits. ICICI provides a Fixed Deposit that allows customers to deposit their money for just as long as you wish. • Wide range of tenures – 15 days to 10 years. • Choice of investment plan – traditional and cumulative deposits. • Partial withdrawal allowed. • Loan facility available – you can avail loan up to 90% of principal and accrued in terest. • Auto renewal facility – you can choose this option so that the deposit can be rene wed on maturity. • Interest compounded quarterly. • Additional interest rate of 0.5% for senior citizens.

 

Recurring Deposits: ICICI Bank Recurring Deposits are an ideal way to invest small amounts of money every month and end up with a large kitty on maturity. High recurring billing an d recurring payments can be a drain on your finances and hence large investments may seem a plan away. Recurring deposits aims to encourage savings without putting any stress on custo mers 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 mi nimum 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 f acility is also available. Security Deposits: A few Corporates stipulate to their new employees to provide Security Deposit to reduce attrition. ICICI Bank’s proposal for the employee is to keep the Security Deposit in the form of a Fixed Deposit (FD) with the Bank. The employee cannot w ithdraw such FDs without the consent of the company and the company has the righ t to withdraw the FD in the event of employee leaving the organization before a certain stipulated period. ICICI Bank Tax-Saver Fixed Deposit ICICI Bank’s Tax-Saver Fixed Deposit enables you to save tax and earn high returns . A dual benefit option structured to maximise your advantage. ICICI Bank’s Tax Sa ver FD is the perfect solution for your investment needs. EEFC Account Indian exports have surged over the last decade owing to an unprecedented boom i n sectors like software, biotechnology, gems, jewellery, textiles etc. As a resu lt of this, the volume of inward remittances has also increased significantly. T o shield the firms engaged in regular export and import from the exchange rate f luctuations RBI has allowed parking of foreign currency by exporters in an accou nt designated as Exchange Earners Foreign Currency Account (EEFC). EEFC accounts are Current Accounts held in foreign currency with authorized dealers of foreig n exchange in the country. Resident Foreign Currency (Domestic) Account Do you want to save money while buying foreign currency for travelling abroad? Y ou can buy traveller’s cheques, foreign currency in cash and foreign currency dem and draft for your expenses overseas. If you are a frequent traveller, you may n ot want to go through the hassles of buying foreign currency every time you trav el abroad. The Reserve Bank of India has now made it easier for you to access foreign curre ncy by permitting a foreign currency account (domestic) for resident Indians. In line with RBI guidelines, ICICI Bank has come up with a scheme that helps you g et rid of all your forex worries. You can park your foreign currency in ICICI Ba nk under RFC (D) account. Non-interest bearing Resident Foreign Currency (D) (RF C (D)) with ICICI Bank can be maintained in four major currencies (USD, EURO, GB P and Japanese Yen) PRIVILEGE BANKING: Privilege banking service ensures preferential treatment to its customers. Silver privilege A/c • Waiver of multi-city cheque book usage up to Rs. 1,00,000 per month. • Waiver of DD/PO charges for upto Rs.50,000 per day. • Preferential rates of gold coins,deposits lockesr &foreign exchange. • Quarterly average balance requirement of Rs.25000.

Gold privilege A/c • Priority processing at all ICICI Bank branches and customer care. • Free usage of payable -at-par cheque book. • Free international gold debit card with higher daily withdrawal and spend limit. • Waiver of DD/PO charges for up to Rs.100,000 per day. • Free anywhere banking facility. • Prefrential rates for gold coins, deposit lockers and foreign exchange. • Quarterly Average Balance (QAB) requirement of Rs.50000. Titanium privilege A/c • Branch relationship manager supported with phone banking relationship manager. • Priority processing at ICICI Bank brancghes and customer care. • Free international titanium debit card with higher daily withdrawal and spend li mit. • Free anywhere banking facility. • Free usage of multi-city cheque book. • Free physical monthly account statement. • Complete waiver on DD/PO charges. • Preferential rates for gold coins, deposit lockers and foreign exchange. • Quarterly average balance (QAB) requirement of Rs.75000 and Total Relationship V alue (TRV)of Rs. 5,00,000. Family banking: Superior product benefits of privilige banking, wealth management and global pri vate client(GPC) available to all the members of your family while the required minimum balance can be maintained in any of the accounts. • Access to superior benefits for the entire family. • Flexibility to maintain balances across account. • Lower minimum balance requirement at individual customer level. • Single family bank – convenience for the entire family and easier funds management . Outward Remittance: Send money to your loved ones abroad ICICI Bank offers you a simple way to send money outside India. Our Outward Remi ttance facilities make remitting money abroad quick, and reliable. ICICI Bank’s Ou tward Remittance is the solution for your all your needs. Be it money for educat ion, gift money or maintenance for loved ones or donation for a cause. Our exten sive network gives us reach to most parts of the world. Advantage Deposit Advantage Deposit is a combination of fixed deposit and mutual fund investment, offering you the safety of a fixed deposit and the returns of an equity fund. Ad vantage Deposit counters equity-market fluctuations through Systematic Investmen t Plans. • Combination of a Fixed Deposit (with monthly interest payout) and Systematic Inv estment Plan (SIP) of a Mutual Fund. • Re-investment of monthly interest payout of Fixed Deposit into systematic invest ment plan of Mutual Fund. • Automatic debits to account through Standing Instruction / ECS debit mandate. New Pension System of Government of India ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION SYS TEM launched on May 1, 2009 by the Government of India. The scheme, promoted by the PFRDA (Pension Fund Regulatory and Development Authority, Government of Indi a), 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 subsc ribers in their old age. The scheme will empower a subscriber to plan his own re tirement and pension. It not only will help him save for life after retirement b

 

ut 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 choos e from. LOANS HOME LOAN Interest rates on home loans have come down considerably in the last few years. Individuals who opted for housing loans in the years gone by, are still servicin g them at 17% to 21% per annum. Quite a price to pay, since one can get a loan today for around 12% per annum. In such a case, you can opt for a balance transf er. Under this scheme, customers can replace their existing old high interest lo an by a cheaper (equal to applicable current rates) loan. ICICI Home Finance wil l not only finance the balance amount of outstanding loan but also your prepayme nt charges to the old housing finance company. • • • • The result: A lower EMI with A reduced tenure A reduced tenure The same EMI and the same tenure . with the same EMI. and EMI . tenure but an additional amount as a loan.

PERSONAL LOANS ICICI Bank Personal Loans are easy to get and absolutely hassle free. With minim um documentation you can now secure a loan for an amount up to Rs. 15 lacs. • Loans for salaried & self employed individuals. • Loans are available from Rs. 20,000 to Rs. 15 Lakhs. • Repayment tenures from 12 - 60 months. • No Security, Collateral or Guarantors required. • Loans can be used for any purpose with no questions asked regarding the end use of the loan. • A balance transfer facility available for those who want to retire any higher de bt. • All loan repayments are done via equated monthly instalments (EMI). CAR LOAN The NO. 1 financier for car loans in the country. Network of more than 1500 channel partners in over 780 locations. Tie-ups with a ll leading automobil e manufacturers to ensure the best deals. Flexible schemes & quick processi ng. Hassle-free application process on the click of a mouse.

COMMERCIAL VEHICLE LOAN • Reaches you through more than 700 locations across the country. • Range of products under one umbrella. • Funding of various products like HCVs, Buses, MCVs, LCVs, 3 wheelers & used vehi cle. • Range of services on existing loans & extended products like funding of new vehi cles, refinance on used vehicles, balance transfer on high cost loans, top up on existing loans, extend product, working capital loans & other banking products .. • Preferred financier status with most of the leading manufacturers. • Simple documentation. • Quick turn around time. • Flexible financing solutions to meet the individual requirement.

TWO WHEELER LOANS: "Zoom" away in your favourite two wheeler. ICICI provides attractive schemes at competitive interest rates. • Finance facility available for all two wheelers ranging from mopeds to motor bik es. • Now avail Finance upto 90%* of the On Road Cost of the vehicle, repayable in con venient tenure options ranging from 6 months to 36 months*. • Ride Easy Pay Easy with ICICI Bank Two Wheeler Loans. • In an unlikely case of your not meeting our norms NO PROBLEM - you can still ava il our loan, any blood relative can be your co-applicant. • Existing ICICI Bank Customers ride away on your favourite Two Wheeler by availin g Loan On Phone*-- a facility to get an instant loan over the phone!! Apply for loan online, call or through sms. FARM EQUIPMENT LOANS: • ICICI is the preferred financier for almost all leading tractor manufacturers in the country. • ICICI finances farm equipments in over 381 locations spread across the country. • Provides fast processing of files with easy documentation. • Flexible repayment options in tandem with the farmer s seasonal liquidity. • Monthly, Quarterly and Half-yearly repayment patterns to choose from. Comfortabl e repayment tenures from 1 year to 6 years.

CONSTRUCTION EQUIPMENT LOAN Having funded infrastructure for over 4 decades, ICICI understands the need of t he customers better. ICICI Bank offers attractive financial packages through the ir excellent distribution network. The products are customized for new entrepren eur to large business houses. ICICI has tie-up with leading construction equipme nt manufacturers for wide range of products. The Bank take over existing high co st loans at competitive terms resulting in huge savings and is quick in processi ng due to easy formalities and one time sanction of loans for disbursement over a period of time. OFFICE EQUIPMENT LOAN: ► Minimum documentation required . ► Doorstep Service. ►Competitive Interest rates. ►Flexible repayment structure. ►Hassle-free application process with the click of a mouse. ►Details on your application status online. MEDICAL EQUIPMENT LOAN: Professional doctors are aware of the distinct advantages that the latest medic al equipment can give their patients. ICICI Bank Medical Equipment Loans support s professionals in their effort to give the best to their patients. It s our hum ble way of being involved in a noble profession. Loans are offered for: • • Purchase of New equipments. Takeover of Existing loans.

 

 

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

LOAN AGAINST SECURITIES Loans against Securities enables customers to obtain loans against their securi ties. So they get instant liquidity without having to sell their securities. All customers have to do is pledge your securities in favour of ICICI Bank The B ank will then grant them an overdraft facility upto a value determined on the ba sis of the securities pledged by them. A current account will be opened and cust omer can withdraw money as and when they require. Interest will be charged only on the amount withdrawn and for the time span utilised. ICICI offer loans against: • • • • • • Demat Shares RBI Relief Bonds Mutual Funds Units India Millennium Deposits (IMDs) ICICI Bank Bonds Life Insurance Policies (Single Premium)

CREDIT CARDS: ICICI Bank Credit Cards give you the facility of cash, convenience and a range o f benefits, anywhere in the world. These benefits range from life time free card s, Insurance benefits, global emergency assistance service, discounts, utility p ayments, travel discounts and much more. DEBIT CARDS: The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world. The ICICI Bank Debit Card can be used for shopping at more than 100,000 merchants in India and 13 million merchants worldwide. TRAVEL CARD: Presenting ICICI Bank Travel Card. The Hassle Free way to Travel the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for sec urity and convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of usage of Credit or Debit card. PRE PAID CARDS:

ICICI Bank brings to you a complete bouquet of pre-paid cards providing payment solutions at your fingertips. ICICI Bank pre-paid cards are a safe &convenient w ay for associate payments, disbursements, gifting & small ticket transactions. P re-paid cards are available on a VISA platform thus providing accessibility to o ver one lakh merchant establishments & cash withdrawal from all VISA ATMs in Ind ia.

INVESTMENTS

ICICI Bank cares about all needs. Along with Deposit products and Loan offerings , ICICI Bank assists people to manage their finances by providing various invest ment options ranging from ICICI Bank Tax Saving Bonds to Equity Investments thro ugh Initial Public Offers and Investment in Pure Gold. ICICI Bank facilitates fo llowing investment products: • ICICI Bank Tax Saving Bonds • Government of India Bonds • Investment in Mutual Funds • Initial Public Offers by Corporate • Investment in "Pure Gold" • Foreign Exchange Services • Senior Citizens Savings Scheme, 2004 Customers can invest in above products through any of ICICI bank branches. For s elect products ICICI Bank also provides the ease of investing through electronic channels like ATMs and Internet (ICICIdirect.com) ICICI BANK BONDS All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA" by ICRA indicating the highest degree of safety for your money. Investment in ICICI Bank Bonds are eligible for tax rebate under Sec 88 to the full extent possible. Bonds are listed on BSE, NSE. GOI BONDS 8% Savings Bonds (Taxable), 2003. Low risk. Reasonable investment tenure. Nomination facility available. Cannot be traded in secondary market. Interest income taxable. Mutual Funds Mutual Funds pool money of various investors to purchase a wide variety of secur ities while pursuing a specific goal. Selection of Securities for the purpose is done by specialists from the field. Returns generated are distributed to the In vestors. Mutual Fund Companies offer various schemes. Investors can choose any particular Fund/Scheme or mix of Funds/Schemes depending upon their perception towards ris k. Investment is done on the basis of prevailing Net Asset Values of various sch emes. Mutual Funds Investments are subject to Market Risks.

Types of Funds Sold ICICI Bank helps investor determine which types of funds you need to meet your i nvestment goals. This may include the following types of funds: Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemes etc. Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc. Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child education Schemes etc. ICICI Bank helps investors identify an appropriate mix of Mutual Fund schemes fo r their portfolio using asset allocation strategies. Through ICICI Bank investor can invest in various schemes of multiple mutual fun ds with decent performance record. investor can take the aid of ICICI Bank’s vario us research reports on mutual funds and their schemes before choosing a scheme f or investment. ICICI Bank offers investment in Mutual Funds through Multiple Cha nnels. With ICICI Bank, investor can invest in Mutual Funds through following ch annels. • ICICI Bank Branches • ICICI Bank ATM’S • ICICIdirect.com And provide a Dedicated workforce to serve clients. • Before being deputed, our officers complete a comprehensive training program and , once deputed, they receive thorough instructions in financial planning skills and techniques • Throughout their careers officers also attend programs to update their skills. A ll officers in charge of Mutual Funds are certified professionals by AMFI (Assoc iation of Mutual Funds in India) • Many of these officers also hold professional degrees like - MBA, CA, ICWA, and CFA etc. ICICI keeps the investors updated on the latest happenings in the Mutual Fund in dustry and the various financial markets through regular electronic updates (dai ly & weekly) through Emails. ICICI also send out a monthly magazine on investmen ts to their customers. Initial public offerings (IPO) Investor can invest in IPOs online through www.icicidirect.com with same conveni ence of investing in equities - hassle-free and with zero paper work. Also, get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit the market. IPO calendar, recent IPO listings, prospectus/offer documents and live prices will help you keep on top of the IPO markets. ICICI Bank Pure Gold Gold has been traditionally the most favored form of investment for Indians. In fact, India, even today is amongst the highest consumers of Gold in the world. H owever, the Gold market remains largely unorganized with reliability and conveni ence remaining the key issues for gold buyers in the country. ICICI Bank with it s `Pure Gold offer attempts to bridge the gap between the need of the customers

 

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

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

SERVICES INVESTMENT SERVICES

1. Demat services A Demat Account allows employees transact in shares instantaneously in a safe an d secure manner. 2. Relief Bonds / Mutual Funds/ Insurance Salary Account customers can now invest in Government of India relief and s avings bonds, a basket of mutual funds, foreign exchange facilities and Insuranc e products through ICICI Bank. 3. GoldCoin Employees can buy 24 karats Pure Gold, which ICICI Bank brings to you. Each coin comes to you straight from Switzerland. Refined to 99.99% fine gold and sealed with a unique Certificate of Authencity- guaranteeing you its purity. FOREX SERVICES ICICI Bank s Foreign Exchange Services will help you organize your foreign excha nge in the most hassle free manner. Whether its Foreign Currency, Travelers Cheq ues or Travel Card, ICICI Bank Foreign Exchange Services is a one-stop solution to your foreign exchange requirement. NRI SERVICES Wherever people may be, in India or abroad, ICICI Bank has created a wide range of products and services that provide customers complete financial solutions. He lping them to make the right decisions at the right time and can be rest assured that they are in the safe and trustworthy hands of ICICI bank. Deposit Products: 1. NRE Account: An NRI can open a Non-Resident External Account(NRE Account)with any bank in Ind ia. The account not only lets customers manage their money that they earn in Ind ia (as permitted by FEMA Regulations) but also of the money earned abroad. The m oney in the account and the interest earned on it can be sent back outside India without any authorization from RBI. The (Account can be opened and funded in any permissible currency, and is later conv erted into Indian Rupees. This Account offers dual benefits of high returns as o ffered by the fixed deposits and liquidity as offered by the savings account. Th e Account helps customers take care of all their financial needs, quickly and co nveniently. In addition to attractive rupee interest rates customers get free mo ney transfers, easy access for the customer as well as for his/her family back i n India, and a free mandate card for the loved ones in India. 2 . NRO Account: The Non-Resident Ordinary Account (NRO Account) allows custome rs to hold the money they have earned in India such as rent, dividends, pensions etc. They can open the account and can fund it in any permissible currency and is later converted into Indian Rupees. NRO account offers attractive exchange ra tes upon conversion of foreign currency into Indian Rupees. This account to offe rs high returns and liquidity. However, the interest earned on the principal amo unt in the account can be sent back after the deductions of tax in India. 3. FCNR Account: A Foreign Currency Non Resident Account (FCNR Account) allows customers to maintain funds as Term Deposits in various foreign currencies, ther eby guarding customers against fluctuating exchange rates. Under this account bo th the principal amount and the interest can be sent back fully, and are taxable in India. The tenures range from 12 to 36 month 4. RFC Account: By opening a Resident Foreign Currency Account (RFC Acc ount) customers can maintain funds as Term deposits in various foreign currenc ies even after they have returned to India. Both the principal and the interest can be remitted outside India. The tenures range from 1month to 36months. Advisory Services Private Equity Placement ICICI Bank s Small Enterprises Group s SEG) Investment Banking team is dedicated

 

   

to provide you niche and exclusive investment banking services. The ICICI Bank Edge • Capital Raising At times for a growing company, the amount of capital that a promoter can infuse in the business becomes limited. Businesses can be self sufficient for capital needs in their nascent and initial growth phases. However to meet expansion and growth plans, external capital is imperative. We at ICICI Bank, with our lending experience, fully understand this and help clients raise equity to fund growth. We have developed a strong network of domestic and international investors who are keen to partner with such success stories in India and these players solicit our advice for investing into such companies. • Buy And Sell Side Advisory:-

Inorganically adding growth to a business or hiving off non-core activities or o pportunity to realize right value for the business created or an instance of tak ing a company on a bigger scale are the ways to strategize today. We at ICICI Ba nk provide assistance on both buy side and sell side transaction. With a large c lient franchise built, more than 10,000 asset clients and international linkages in developed economies, ICICI Bank can bring in the best synergy partner to con clude a sell side or buy side advisory assignment. • Special Situation Solutions:Backed by institutional legacy, in-depth understanding and linkages with key sta keholders in the process of turnaround, ICICI Bank s Investment Banking team can design solutions for special situations like CDR, BIFR, OTS, etc. Count on us t o turn around the capital structure of your company and bring in additional capi tal for growth. Online Services ICICI Bank provides a variety of online services.now these is no need of walking up to the bank branch, every time you need to do your banking. As you can do a lot of it online. From paying your bills to transferring funds, booking your rai l/air tickets, shopping, sending a money order and doing lots more. AWARDS & RECOGNITION The Bank received several awards during fiscal 2011 in India and abroad. ICICI Bank won the "Best Bond House (India) 2011", by IFR Asia.

“Most Trusted Brand“ among private sector banks in 2010 by Economic Times – Brand Eq ity Most Trusted Brands and ranked 7th in the list of Top 50 service brands. Ranked 2nd in the “Most Respected Company Awards 2011” in financial services sector by Business World.

Ranked 1st in the “Banking and Finance category “and 9th overall in the “2010 Best Co panies To Work For” by Business Today.

“Best Financial Inclusion Initiative” and runner up for “Best Online Bank” ,”Best Use usiness Intelligence”, and “Technology Bank Of The Year” in the Banking Technology Awa rds 2010 by Indian Banks Association. Special Citation for the Fully Electronic Branch Service Channel at the Financia l Insights Innovation Awards held in conjunction with Asian Financial Services C ongress. “Most Tech-friendly Bank Award” by Business World

 

Ranked 70th in the Brandirectory league tables of the “World’s most valuable brands” y The Brand Finance Banking 500.

“Excellence in Remittance Business” (Worldwide), “Excellence in NRI Services” (World e) and “Excellence in Private Banking Business” (APAC) by World Finance.

“Best Trade Finance Bank” and “Best Foreign Exchange Bank” (India) by Finance Asia Co ry Awards for Achievement. “Best Trade Finance Bank” (India), by Asset Triple A. “Best Trade Finance Bank” (South Asia) by Global Trade Review. “Best Banking Security System” by Asian Banker. ICICI Bank awarded the Best Bank (India) by Global Finance ICICI Bank won the "C entury International Quality Era Award" at Geneva. The award recognizes commitme nt towards Quality, Excellence, Customer Satisfaction, Leadership and Strategic Planning as established in the QC 100 model of Total Quality Management (TQM). For the second year in a row, Ms. Chanda Kochhar, Managing Director & CEO, is in the Power List 2012 of 25 most influential women professional in India, by Indi a Today. Ms. Chanda Kochhar, Managing Director & CEO, is amongst the nine Indian women to be named in the Forbes magazine s inaugural Asia Power Businesswomen list Mr. N.S.Kannan, Executive Director & CFO, received the "Best CFO", in the Bankin g / Financial Services category by CNBC - TV 18. ICICI Bank was recognised for the first Credit Default Swap (CDS) deal in India at the Fimmda annual conference in Kuala Lumpur. ICICI Bank NRI services wins the “Excellence in Business Model Innovation Award” in the eighth Asian Banker Excellence in Retail Financial Services Awards Programme . Ms. Chanda Kochhar, Managing Director & CEO was awarded the "CNBC Asia India Bus iness Leader Of The Year Award". She also received the "CNBC Asia s CSR Award 20 11" For the third year in a row ICICI Bank has won The Asset Triple A Country Awards for Best Domestic Bank in India. ICICI Bank s Rural Micro Banking and Agri-Business Group wins WOW Event & Experi ential Marketing Award in two categories - “Rural Marketing programme of the year” a nd “Small Budget On Ground Promotion of the Year”. These awards were given for Cattl e Loan Kamdhenu Campaign and Talkies on the move campaign respectively. ICICI Bank s Germany Branch has been certified by “Stiftung Warrentest”. ICICI Bank is ranked 2nd amongst 57 savings products across 19 banks ICICI Bank s Organisational Excellence Group was recently awarded ISO 9001:2008 certification by TUV Nord. The scope of certification comprised processes around consulting and capability building on methods of quality & improvements. ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the Ca nadian Helen Keller Centre s Fifth Annual Luncheon in Toronto. The award was giv

 

 

 

 

 

 

 

 

   

 

 

en to ICICI Bank its long-standing support to this unique training centre for pe ople who are deaf-blind. The ICICI Bank was awarded the runner s up position in Gartner Business Intellig ence and Excellence Award for Asia Pacific for its Business Intelligence functio ns.

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 met hodology not only talks about the research methods but also considers the logic behind the method used in the context of the research study. Research Methodolog y is a way to systematically study and solve the research problems. If a researc her wants to claim his study as a good study, he must clearly state the methodol ogy adapted in conducting the research the research so that it way be judged by the reader whether the methodology of work done is sound or not.

The Research Methodology here includes:Objective of study Meaning of Research. Research Problem. Research Design. Data Collection method. Analysis and interpretation of Data Limitation of study

 

OBJECTIVE OF THE STUDY Objectives are the ends that states specifically how goal be achieved. Every stu dy must have an objective for which all the efforts have been done. Without obje ctive no research can be conducted and no result can be obtained. On the basis o f objective all the research process is followed. Objectives are the main aspect of every study. The objective of the study gives direction to go through the research problem. It guides the researcher and keeps him on track. I have two objectives regarding my research project. These are shown below :1. Primary objective 2. Secondary objective 1. Primary objectives :1) To study the software used in ICICI Bank. 2) To analyze the financial statements of the corporation to assess it’s true fina ncial position by the use of ratios. 2. Secondary objectives :1) To find out the shortcomings in ICICI Bank. 2) To see whether ICICI Bank is going well or not in different areas.

IMPORTANCE OF THE STUDY • By “FINANCIAL PERFORMANCE ANALYSIS OF ICICI Bank” we would be able to get a fair pic ture of the financial position of ICICI Bank. • By showing the financial performance to various lenders and creditors it is poss ible to get credit in easy terms if good financial condition is maintained in th e company with assets outweighing the liabilities. • • Protecting the property of the business. Compliances with legal requirement.

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

oblem is research.

Research Problem The first step while conducting research is careful definition of Research Probl em. “To ERR IS THE HUMAN” is a proverb which indicates that no one is perfect in thi s world. Every researcher has to face many problemswhich conducting any research that’s why problem statement is defined to know which type of problems a research er has to face while conducting any study. It is said that, “Problem well defined is problem half solved.” Basically, a problem statement refers to some difficulty, which researcher experiences in the context of either a theoretical or practical situation and wants to obtain the solution for the same. The problem statement here is:“TO MAKE A FINANCIAL ANALYSIS OF FINANCIAL STATEMENTS OF ICICI BANK”

Research Design A research designs is the arrangement of conditions for collection and analysis data in a manner that aims to combine relevance to the research purpose with eco nomy in procedure. Research Design is the conceptual structure with in which res earch in conducted. It constitutes the blueprint for the collection measurement and analysis of data. Research Design includes and outline of what the researche r will do form writing the hypothesis and it operational implication to the fina l analysis of data. A research design is a framework for the study and is used a s guide in collection and analyzing the data. It is a strategy specifying which approach will be used for gathering and analyzing the data. It also include the time and cost budget since most studies are done under these two cost budget sin ce most studies are done under theses tow constraints. The design is such studie s must be rigid and not flexible and most focus attention on the following:What is the study about? Why is the study being made? Where will the study be carried out? What type of data is required? Where can be required data be found? What period of time will the study include? What will be sample design? What techniques of data collection will be used? How will the data be analyzed? In what style will the report be prepared?

TYPES OF RESEARCH DESIGN : EXPERIMENTAL RESEARCH DESIGN EXPLORATORY RESEARCH DESIGN DESCRIPTIVE& DIAGNOSTIC RESEARCH Exploratory Research Design:This research design is preferred when researcher has a vague idea about the pro blem the researcher has to explore the subject. Experimental Research Design: – The research design is used to provide a strong basis for the existence of casu al relationship between two or more variables. Descriptive Research Design :– It seeks to determine the answers to who, what, where, when and how questions. I t is based on some previous understanding of the matter. Diagnostic Research Design :It determines the frequency with which something occurs or its association with something else.

RESEARCH DESIGN USED IN THE STUDY: Descriptive research design is used in this study because it will ensure the min imization of bias and maximization of reliability of data collected. Descriptive study is based on some previous understanding of the topic. Research has got a very specific objective and clear cut data requirements The researcher had to us e fact and information already available through financial statements of earlier years and analyse these to make critical evaluation of the available material. Hence by making the type of the research conducted to be both Descriptive and An alytical in nature. From the study, the type of data to be collected and the pro cedure to be used for this purpose were decided. Data Collection Method The process of data collection begins after a research problem has been defined and research design has been chalked out. There are two types of data – PRIMARY DATA – It is first hand data, which is collected by researcher itself. Primary data is collected by various approaches so as to get a precise, accurate, realistic and relevant data. The main tool in gathering primary data was investigation and obs ervation. It was achieved by a direct approach and observation from the official s of the company. SECONDARY DATA – It is the data which is already collected by someone else. Researcher has to an alyze the data and interprets the results. It has always been important for the completion of any report. It provides reliable, suitable, adequate and specific knowledge.

TYPE OF DATA USED IN THE STUDY The required data for the study are basically secondary in nature and the data a re collected from :The audited reports of the company. INTERNET – which includes required financial data collected form ICICI Bank’s offici al website i.e www.icici.com and some other websites on the internet for the pu rpose of getting all the required financial data of the bank and to get detail ed knowledge about ICICI Bank for the convenience of study. Brouchers of ICICI Bank. The valuable cooperation extended by staff to fulfill the requirements in the co llection of data in order to complete the project members and the branch manager of ICICI bank, dharmshala contributed a lot .

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

Limitations of study:• • • Difficulty in data collection. Limited knowledge about the bank in the initial stages. Branch manager was reluctant for giving financial data of the bank.

• The analysis and interpretation are based on secondary data contained in the pub lished annual reports of ICICI Bank for the study period. • Due to the limited time available at the disposable , the study has been confine d for a period of 5 years .

• .

Ratio itself will not completely show the company’s good or bad financial position

• Inter firm comparison was not possible due to the non availability of competitor s data. • The study of financial performance can be only a means to know about the financi al condition of the company and cannot show a through picture of the activities of the company.

INTRODUCTION OF THE TOPIC “FINANCIAL ANALYSIS” Meaning Of Financial Statements Financial statements refer to such statements which contains financial informati on about an enterprise. They report profitability and the financial position of the business at the end of accounting period. The team financial statement inclu des at least two statements which the accountant prepares at the end of an accou nting period. The two statements are: • • The Balance Sheet Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet mirrors the financial position on a particular date in terms of the structure of assets, liabilities and owners equity, and so on and the Profit And Loss accoun t shows the results of operations during a certain period of time in terms of th e revenues obtained and the cost incurred during the year. Thus the financial st atement provides a summarized view of financial positions and operations of a fi rm. Meaning Of Financial Analysis The term financial analysis is also known as ‘analysis and interpretation of finan cial statements’ refers to the process of determining financial strength and weakn ess of the firm by establishing strategic relationship between the items of the Balance Sheet, Profit and Loss account and other operative data. The first task of financial analysis is to select the information relevant to th e decision under consideration to the total information contained in the financi al statement. The second step is to arrange the information in a way to highligh t significant relationship. The final step is interpretation and drawing of infe rence and conclusions. Financial statement is the process of selection, relation and evaluation.

Features of Financial Analysis o o To present a complex data contained in the financial statement in simple and understandable form. To classify the items contained in the financial statement in convenient and rational groups. To make comparison between various groups to draw various conclusions. Purpose of Analysis of financial statements To know the earning capacity or profitability. To know the solvency. To know the financial strengths. To know the capability of payment of interest & dividends. To make comparative study with other firms. To know the trend of business. To know the efficiency of mgt. To provide useful information to mgt.

o

Procedure of Financial Statement Analysis The following procedure is adopted for the analysis and interpretation of financial statements:• The analyst should acquaint himself with principles and postulated of accounting . He should know the plans and policies of the management so that he may be able to find out whether these plans are properly executed or not. • The extent of analysis should be determined so that the sphere of work may be de cided. If the aim is find out. Earning capacity of the enterprise then analysis of income statement will be undertaken. On the other hand, if financial position is to be studied then balance sheet analysis will be necessary. • The financial data be given in statement should be recognized and rearranged. It will involve the grouping similar data under same heads. Breaking down of indiv idual components of statement according to nature. The data is reduced to a stan dard form. • A relationship is established among financial statements with the help of tools & techniques of analysis such as ratios, trends, common size, fund flow etc. • The information is interpreted in a simple and understandable way. The significa nce and utility of financial data is explained for help in decision making. • The conclusions drawn from interpretation are presented to the management in the form of reports.

Types Of Financial Analysis There are different ways of analysis the financial statements: 1. a) On The Basis Of Process Analysis:Horizontal Analysis:-

This is used when the financial statement of a number of years are to be analyze d. Such analysis indicates the trends and the increase or decrease in various it ems not only in absolute figures but also in percentage form. This analysis indi cates the strengths and weaknesses of the firm. This analysis is also called as dynamic analysis because it also shows the trend of the business. b) Vertical Analysis : -

This is used when financial statements of a particular year or on a particular d ate are analyzed. For this type of analysis we generally use common size stateme nts and the ratio analysis. It involves a study of quantitative relationship amo ng various items of balance sheet and profit and loss account. This type of anal ysis is static analysis because this is based on the financial results of one ye ar. Vertical analysis is useful when we have to compare the performance of diffe rent 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 con crete bases for future planning. 2. a) On The Basis Of Information Available:Internal Analysis:-

This analysis is based on the information available to the business firm only .H ence internal analysis is made by the management. Internal analysis is more reli able and helpful for financial decisions. b) External Analysis :-

This analysis is made on the basis of published statements, reports and infor mations. This analysis is made by external parties such as creditors, investors, banks, financial analysis etc. external analysis is less reliable in comparison to internal analysis because of limited and often incomplete information. 3. a) On The Basis of Number of Firms:Inter-Firm Analysis :-

When financial analysis of two or more companies or firms are analyzed and comp ared over a number of accounting period, it is called inter-firm analysis. b) Intra -Firm Analysis :-

Intra-firm analysis is concerned with the analysis of financial performance of different units or departments or segments of the same enterprise or company. Si milarly when financial statements of two or more years of the same firm are anal

yzed and compared it is also called as intra-firm analysis.

4.

On The Basis Of Objectives

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

Methods/Tools Of Financial Analysis A number of methods can be used for the purpose of analysis of financial stateme nts. These are also termed as techniques or tools of financial analysis. Out of these, and enterprise can choose those techniques which are suitable to its requ irements. The principal techniques of financial analysis are:a. b. c. d. e. f. g. Comparative financial statements Common-size statements Trend analysis Ratio analysis Funds flow analysis Cash flow analysis Break even point analysis

a. Comparative Financial Statements:When financial statements figures for two or mote years are placed side-side to facilitate comparison, these are called ‘comparative Financial Statements’. Such sta tements 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 f orming the opinion regarding the progress of the enterprise. Objectives purpose or significance of comparative financial statements 1.To 2.To 3.To 4.To 5.To 6.To 7.To 8.To simplify data make inter period/inter-firm comparison indicate the trends enable forecasting indicate the strengths and weaknesses of the firm compare the performance analyse expenses analyse profits

Tools for comparison of financial statements

Comparative financial statement is a tool of financial analysis that depicts cha nge in each item of the financial statement in both absolute amount and percenta ge term, taking the item in preceding accounting period as base. Comparison and analysis of financial statements may be carried out using the fol lowing tools: 1.Comparative Balance Sheet : The comparative balance sheet shows increase and decrease in absolute terms as w ell as percentages ,in various assets ,liabilities and capital. A comparative an alysis of balance sheets of two periods provides information regarding progress of the business firm. The main purpose of comparative balance sheet is to measure the short- term and long-term solvency position of the business. 2. Comparative Income Statement :Comparative income statement is prepared by taking figures of two or more than two accounting periods, to enable the analyst to have definite knowledge about t he progress of the business. Comparative income statements facilitate the horizo ntal analysis since each accounting variable is analyzed horizontally. b. Common- Size Statements: Common size statements are such statements in which the items of financial state ments are covered into percentage of common base. In common-size income statemen t, by assuming net sales as 100(i. e %) and other individual items are converted as percentage of this. Similarly, in common size balance sheet , total assets a re assumed to be 100 (i.e %) and individual assets are expressed as percentage. Objectives of common size statements 1. Presenting the change in various items in relation to total assets or to tal liabilities or net sales. 2. Establishing a relationship. 3. Providing a common base for comparison. Types of common size statements:1. Common-Size Balance Sheet :A common –size balance sheet is a statement in which total of assets or liabiliti es is assumed to be equal to 100 and all the figures are expressed as percentage of the total. That is why it is known as percentage balance sheet. Common-size balance sheet facilitate the vertical analysis since each item of t he Balance Sheet is analyzed vertically. 2. Common-Size Income Statement:-

Common-size income statement is a statement in which the figures of net sales i s assumed to be equal to 100 and all other figures of “profit and loss A/c” are expr essed as percentage of net sales.this statement facilitate the vertical analysis s since each accounting variable is analyzed vertically. One can draw conclusion , regarding the behaviour of expenses over period of time by examining these per centages.

c. Trend Analysis:Trend percentage are very useful is making comparative study of the financial st atements for a number of years. These indicate the direction of movement over a long time and help an analyst of financial statements to form an opinion as to w hether favorable or unfavorable tendencies have developed. This helps in future forecasts of various items. For calculating trend percentages any year may be ta ken 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 meaningfuln ess. 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 figur es, expressed in arithmetical terms is called a ratio. “According to R.N. Anthony.” “A ratio is simply one number expressed in terms of another. It is found by dividing one number into the other.”

OBJECTS AND ADVANTAGES OR USES OF RATIO ANALYSIS 1. 2. 3. 4. 5. 6. 7. 8. 9. Helpful in analysis of financial statements. Simplification of accounting data. Helpful in comparative study. Helpful in locating the weak spots of the business. Helpful in forecasting Estimate about the trend of the business Fixation of ideal standards Effective control Study of financial soundness. LIMITATION OF RATIO ANALYSIS 1. False accounting data gives false ratios. 2. Comparisons not possible of different firms adopt different Accounting policies. 3. Ratio analysis becomes less effective due to price level Change. 4. Ratios may be misleading in the absence of absolute data. 5. Limited use of a single Ratio. 6. Window-Dressing 7. Lack of proper standards. 8. Ratio alone are not adequate for proper conclusions.

9.

Effect of personal ability and bias of the analyst.

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

FUNCTIONAL CLASSIFICATION IN VIEW OF FINANCIAL MANAGEMENT OR CLASSIFICATION ACCORDING TO TESTS Liquidity Ratios Long-term Solvency and Leverage Ratios Activity Ratios Profitability Ratios

-Current Ratio -Liquid Ratio (Acid) Test or

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

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

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

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

BALANCE SHEET OF ICICI BANK LTD. As On Mar 2007,Mar 2008,Mar 2009,Mar2010,Mar2011. (Rs. In crores) 2007 2008 2009 2010 2011 CAPITAL AND LIABILITIES: Total Share Capital 1249.34 1462.68 1463.29 1,114.89 1,151.82 Equity Share Capital 899.34 1112.68 1113.29 1,114.89 1,151.82 Share Application Money 0.00 0.00 0.00 0.00 0.29 Preference Share Capital 350.00 350.00 350.00 0.00 0.00 Reserves 23413.92 45357.53 48419.73 50,503.48 53,938.82 Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 Net Worth 24663.26 46820.21 49883.02 51,618.37 55,090.93 Deposits 230510.19 244431.05 218347.82 202,016.60 225,602.11 Borrowings 51256.03 65648.43 67323.69 94,263.57 109,554.28 Total Debt 306429.48

356899.69 335554.53 296,280.17 335,156.39 Other Liabilities And Provisions 38228.64 42895.39 43746.43 15,501.18 15,986.35 Total Liabilities 344658.12 399795.08 379300.96

363,399.72

406,233.67

ASSETS: Cash And Balances With RBI 18706.88 29377.53 17536.33 27,514.29 20,906.97 Balances With Banks, Money At Call 18414.45 8663.60 12430.23 11,359.40 13,183.11 Advances 195865.60 225616.08 218310.85 181,205.60 216,365.90 Investments 91257.84 111454.34 103058.31 120,892.80 134,685.96 Gross Block 6298.56 7036.00 7443.71 7,114.12 9,107.47 Accumulated Depreciation 2375.14 2927.11 3642.09 3,901.43 4,363.21 Net Fixed Assets 3923.42 4108.89 3801.62 3,212.69 4,744.26 Capital Work In Progress 189.66 0.00 0.00 0.00 0.00 Other Assets 16300.26 20574.63 24163.62 19,214.93 16,347.47 Total Assets

344658.11 399795.07 379300.96 363,399.71 406,233.67

PROFIT AND LOSS ACCOUNT OF ICICI BANK LTD. For The Year Ended Mar2007,Mar2008,Mar2009,Mar2010,Mar2011 (Rs. In Crores) 2007 2008 2009 2010 2011 INCOME: Interest Earned 9409.90 13784.49 22994.29 30788.34

31092.55

Other Income 3416.14 4983.14 5929.17 8810.77 7603.72 Total Income 12826.04 18767.63 28923.46 39599.11 38696.27 EXPENDITURE: Interest Expended 6570.89 9597.45 16358.50 23484.24 22725.93 Operating Expenses 3299.15 4479.51 6690.56 8154.18 7045.11 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 And Contigencies 428.80 1594.07 2226.36 2904.59 3808.26 Provision For Tax 522 556.53 537.82 898.37 1358.84 Net Profit 2005.20 2540.07 3110.22 4157.73 3758.13 Extraordinary Items 0.00 0.00 0.00 0.00 (0.58) Profit B/F 53.09 188.22 293.44 998.27 2436.32 Total 2058.29 2728.29 3403.66 5156.00 6193.87 Preference Dividend 0.00 0.00 Equity Dividend 632.96 759.33 901.17 Corporate Dividend Tax 90.10 106.50 Pershare Data Eps(Rs.) 27.22 28.55 34.59 Equity Dividend(%) 85.00 85.00 Book Value(Rs) 170.35 249.55 270.37 Appropriations Transfer To Statutory Reserve 547.00 Transfer To Other Reserve 600.01 Proposed Dividend/Transfer To Govt Balance C/F To Balance Sheet 188.22 Total 2058.29 2728.30 3403.66 5156.01 FINANCIAL STATEMENT ANALYSIS (Rs. in crores)

0.00 0.00 0.00 1227.70 1224.58 153.10 149.67 151.21 37.37 33.78 100.00 110.00 110.00 417.64 445.17 248.69 1320.34 723.06 293.44 6193.87 1351.12 0.00 865.83 998.27 1342.31 0.01 1054.27 2436.32 2008.42 0.01 1377.37 1375.79 2809.65

PARTICULARS 2005-2006 2006-2007 2007-2008 2008-2009 Absolute change % of change Absolute change % of change Absolute change % of change Absolute change % of change CAPITAL AND LIABILITIES: Capital 153.08 14 9.51 0.8 213.34 17 0.61 .04 Reserves and surplus 9502.96 80 2097.76 10 21943.61 94 3062.2 7 Deposits 65264.39 65 65427.02 40 13920.86 6 (26083.23) (11) Borrowings 4977.41 15 12734.12 33 14392.4 28 1675.26 2.5 Other Liabilities and Provisions 3831.71 18 13000.76 TOTAL CAPITAL AND LIABILITIES 83729.55 (20494.12) (5.1) ASSETS: 50 93269.17 51.5 4666.75 12 37 55136.96 851.04 2 16

Investments 21060.04 (8396.03) (7.5) Advances 54757.96 15 (7305.23 (3.25) Fixed assets (57.32) (1.4) (7.5) Capital Work In Progress -100 0.00 0.00 Current assets 7917.23 37 (8) TOTAL ASSETS: 83729.55 16 (20494.11) (5.1)

42 60

19710.45 49702.49

27.5 34

20196.5 22 29750.48 (307.27) (189.66) (4485.58) 55136.96

(57.3) (1.4) 51.64 54

185.47 5 41.72 28.2

23871.8 81 50 93269.16

5194.17 10 37

Comparative Balance Sheet Of ICICI Bank From 2005-2006 To 2008-2009 Interpretation The capital of bank increased by 14% in 2005-06,0.8% in 2006-07,17% in 2007-08,a nd .04 % in 2008-09.This shows that there is fluctuation in the rate of increase in the capital. In 2005-06 and 2007-08 the rate of increase in capital is more than that of 2006-07 and 2008-09. There is a huge fluctuation in the rate of increase in reserves and surplus also . This shows that bank is effectively utilizing its reserves and surplus. In 2005-06 deposits increase by 65%,in 2006-07 it increased by 40%,and an increa se of 6% in 2007-08.in 2008-09 deposits fall by 11%.this shows that the bank has repayed its deposits in this year. The borrowings are also showing a fluctuating rate of increase.in 2008-08 the bo rrowings have increased at a very low rate.this shows that bank has repaid a lar ge amount of borrowings in this year and thereby reducing the dependence on outs ide debt. The investments are also increasing but with lower rates compared to the precedi ng years. Similarly advances rose by 60% in 2005-06,an increase of 34% in 2006-07,15% inc rease in 2007-08 and finally decresed by 3.25% in 2008-09. Thre has been a consistent decline in the fixed assets over years.in 2005-06 and 2006-07 it decreased by 1.4 % ,increased by 5% in 2007-08 and again decreasing

by 7.5% in 2008-09.this is mainly due to increase in the rate of depreciation in the subsequent years. A huge fluctuation is revealed from current assets. it increased by 37% in 200506,rate of increase rose to 80% in 2006-07 and then the it increased at a much l ower rate i.e at 10%.this shows that the bank is effectively ustilising its work ing capital.there is a fall in current assets in 2008-09 by 8 %.this is mainly d ue to the repayment of deposits in the years 2008-09.

1.

Comparative Income Statement Of ICICI Bank From 2005-2006 To 2008-2009

(Rs. in crores) PARTICULARS 2005-2006 2006-2007 08 2008-2009 Absolute change % of change Absolute change % of change change % of change Absolute change % of chan-ge INCOME: Operating income 5941 46.3 10156 54.1 10676 37 (902.84) (2.3) EXPENDITURE: Interest expended 3026.56 (3) Operating expenses 1180.36 (14) Total expenses 4206.92 43 (5.9) Operating profit 1734.67 12.1 Provision and contigencies 1364.14 36 Net profit for the year Extraordinary items 534.87 0.00 27 0.00 46 36 6761.05 70.4 2211.05 49.3 7125.74 43.5 1463.62 22

2007-20 Absolute

(758.31) (1109.07

8972.1 64 59

8589.36 37.2

(1867.38) 964.54

1183.73 25.2

2086.29 35.5

1199.8 126.1

613.58 28.5

1038.78 37.5

570.15 0.00 22.4 0.00 1047.51 0.00 34 0.00 (399.6) (0.58) (10) 0.00 Profit brought forward 135.13 254.5 105.22 56 704.83 21 1438.05 144 TOTAL PROFIT/(LOSS): 670 32.55 675.37 25 1752.34 51.4 1037.87 20 Interpretation:The net profit shows a fluctuating trend i.e it increased by 27% in 2007-06,22.4 % increase in 2006-07,and increased by 34% in 2007-08 and finally if falls by 10 % in2008-09.this may be due to decline in operating income and inresed tax liabi lity in the year 2008-09. The interest expenses from the period 2005 to 2008 showed an increasing trend bu t decresed in 2008-09 due to repayment of borrowings.

2.

TREND ANALYSIS

Trend Percentage Of ICICI Bank From 2007 To 2011 Percentage(%) figures Particulars 2007 2008 Deposits 100 165 Advances 100 160 2009 231 214 2010 245 247 2011 219 239

Net profit

100

127

155

207

187

Interpretation: There is a continous increase in the deposits till the year ending 2010 followed by a downfall in the year ending 2011 due to repayment deposits in this year. Similarly advances also shows as increasing trend till the year ending 2010 allo wed by a slight downfall in the year ending 2011 There has been a substantial increase in net profit till the year year ending 20 10 .In four years it has been more than double. The overall performance of the bank is satisfactory. 3. RATIO ANALYSIS

CURRENT RATIO: An indication of a company s ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is. Current ratio is equal to curr ent assets divided by current liabilities. If the current assets of a company ar e more than twice the current liabilities, then that company is generally consid ered to have good short-term financial strength. If current liabilities exceed c urrent assets, then the company may have problems meeting its short-term obligat ions. CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

Year Current Assets (Rs. In crores) Current (Rs. In crores) Current 2007 21632.56 2008 29549.79 2009 53421.59 2010 58615.76 2011 54130.18

Liabilities Ratio 21396.16 25227.88 38228.64 42895.38 43746.43

 

1.01 1.17 1.39 1.36 1.23

Interpretation: An ideal solvency ratio is 2. The ratio of 2 is considered as a safe margin of s olvency due to the fact that if current assets are reduced to half (i.e.) 1 inst ead of 2, then also the creditors will be able to get their payments in full. But here the current ratio is less than 2 and more than 1 which shows that the bank have current assets just equal to the current liabilities which is not sati sfactory as the safety margin is very less or zero. Therefore the bank should ke ep 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 p repaid expenses are considered as quick assets. Quick Ratio = Total Quick Assets Total Current Liabilities Quick Assets = Total Current Assets – Inventory

2007 2008 2009 2010 2011

12929.97 17040.22 37121.33 38041.13 29966.56 Interpretation:

21396.16 25227.88 38228.64 42895.38 43746.43

0.60 0.67 0.97 0.88 0.68

A quick ratio of 1:1 is considered favourable because for every rupee of current liability,there is atleast one rupee of liquid assets. A higher value of ratio is considered favourable. Here this ratio is less than 1 in 2007,2008& 2011 but in 2009 & 2010it is close to 1 which is not satisfactory. This means the bank ha s not managed its funds properly in this particular period. Therefore bank shoul d rationally utilise its funds to maintain an ideal liquid ratio.

EARNING PER SHARE: In order to avoid confusion on account of the varied meanings of the term capita l employed, the overall profitability can also be judged by calculating earning pe r share with the help of the following formula: Earning Per Equity Share = Net Profit after Tax –Prefrence Dividend No. of Equity shares The earning per share of the company helps in determining the market price of th e equity shares of the company. A comparison of earning per share of the company with another will also help in deciding whether the equity share capital is bei ng effectively used or not. It also helps in estimating the company’s capacity to

pay dividend to its equity shareholders.

Year Net Income Available For Shareholders (Rs. In crores) No. Of Equity Shares (Rs. In crores) EPS 2007 2008 2009 2010 2011 2005.2 2540.07 3110.22 4157.73 3758.13 73.6716 27.22 88.9823 28.55 89.9266 34.59 111.2687 111.325 33.78

37.37

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

DIVIDEND PER SHARE :It is expressed by dividing dividend paid to equity shareholders by no. of equit y shares.this shows the per share dividend given to equity shareholders.It is ve ry helpful for potential investors to know the dividend paying capacity of the c ompany.It affects the market value of the company. Dividend Per Share = Dividend Paid To Equity Shareholders No. Of Equity Shares

Year

Dividend Paid

(Rs. In crores) No. Of Equity Shares

(Rs. In crores) DPS 2007 2008 2009 2010 2011 632.96 759.33 901.17 1227.7 1224.58 73.6716 8.59 88.9823 8.53 89.9266 10.02 111.2687 111.325 11

11.03

Interpretation: Here the Dividend Per Share is increasing year after year except a little declin e in 2009.otherwise the dividend per share ratio of the bank is quite satisfacto ry which shows the bank has a good dividend paying capacity.

NET PROFIT RATIO :This ratio indicates the Net margin on a sale of Rs.100. It is calculated as fol lows: Net Profit Ratio = Net Profit X 100 Net Sales

This ratio helps in determining the efficiency with which affairs of the busines s Are being managed. An increase in the ratio over the previous period indicates improvement in the operational efficiency of the business. The ratio is thus o n effective measure to check the profitability of business. Year (Rs. In (Rs. In (in %) 2005 2006 2007 2008 2009 Net Profit crores) Sales crores) Net Profit Ratio 2005.2 2540.07 3110.22 4157.73 3758.13 9409.9 21.3 13784.49 22994.29 30788.34 31092.55 18.42 13.52 13.5 12.08

Interpretation: Although both the sales and net profit have increased during the above period bu t the Net Profit Ratio of the bank is declining continuously. This is because of the reason that net profits have not increased in the same proportion as of th e sales. OPERATING PROFIT RATIO: This ratio is calculated as follows: Operating Profit Ratio = Operating Profit X100 Net Sales The difference between net profit ratio and net operating profit ratio is that n et operating profit is calculated without considering non-operating expenses and non-operating incomes. If we deduct this ratio from 100,the result will be oper ating ratio. Higher operating profit ratio enable the organization to recoup non -operating expenses out of operating profits and provide reasonable return.

Year Operating Profit (Rs. In crores) Sales (Rs. In crores) Operating Profit Ratio (in %) 2007 2956 9409.9 31.41 2008 4690.67 13784.49 34.02 2009 5874.4 22994.29 25.54 2010 7960.69 30788.34 25.85 2011 8925.23 31092.55 28.7 Interpretation: In the year 2007 & 2008 the operating profit is 31.41% & 34.02% respectively. Af ter that it has been consistently declined from the year 2009 till 2010 and agai n gaining momentum in 2011. This may be due to the reason that operating expense s have been increased more as compared to sales during the above period conseque ntly reducing the operating profits. Therefore the bank should check on unnecess ary operating expenses to correct this situation and to provide a sufficient ret urn.

RETURN ON NET WORTH: It measures the profitability of the business in view of the shareholders. It ju dges the earning capacity of the company and the adequacy of return on proprieto r’s funds.Shareholders and potential investors are interested in this ratio.It is calculated as below: Return On Net Worth = Net Profit After Interest And Tax x 100 Shareholder’s Funds

Year Net Profit After Interest And Tax (Rs. In crores) Shareholder s Fund (Rs. In crores) Return On Net Worth (in %) 2007 2005.2 12899.97 15.54 2008 2540.07 22555.99 11.26 2009 3110.22 24663.26 12.61 2010 4157.73 46820.21 8.88 2011 3758.13 49883.02 7.53

Interpretation: The net profit after interest and tax have increased slowly till the year 2010 f ollowed by a downfall due to high interest payments, operating expenses and taxa tion liability. consequently the networth ratio has declined considerably and ha s reduced to more than half in the year 2011 than it was in 2007.

 

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

Year Net Profit Before Interest And Tax (Rs. In crores) Capital Employed (Rs. In crores) Return On Capital Employed (in %) 2007 9098.09 146263.25 6.22 2008 12694.05 226161.17 5.61 2009 20006.54 306429.48 6.52 2010 28540.34 356899.69 7.99 2011 27842.9 335554.53 8.29

Interpretation: The above table exhibit the return on capital employed ratio of the bank for las t five years.This ratio measures the earning of the net assets of the business. The ratio was 6.22% in year 2007. After that it rised to the tune of 5.61%,6.52 %,7.99% and 8.29% in year 2008, 2009, 2010and year 2011 respectively. It lead t o the conclusion bank rising but very little proportion of return on capital emp loyed.

DEBT- EQUITY RATIO:The Debt-Equity ratio is calculated to find out the long-term financial position of the firm. This ratio indicates the relationship between long-term debts and shareholder’s funds. The soundness of long-term financial policies of a firm can b e determined with the help of this ratio. It helps to assess the soundness of long-term financial policies of a business. It also helps to determine the relative stakes of outsiders and shareholders. Lo ng-term creditors can assess the security of their funds in a business. it indic ates to what extent a firm depends upon lenders to meet its long-term financial requirements. A low Debt-Equity ratio is considered better from the point of vie w of creditors.

Year Debt (Rs. In crores) Equity (Rs. In crores) Debt Equity Ratio

2007 2008 2009 2010 2011

154759.45 228832.96 319994.86 352974.87 329417.94

12899.97 22555.99 24663.26 46820.21 49883.02

11.99 10.14 12.97 7.53 6.6

Interpretation: The ratio shows the extent to which funds have been provided by long-term credit ors as compared to the funds provided by the owners.Here the Debt-Equity ratio f or the above period is always high.this shows that the bank is more relying on o utside funds as compared to internal sources of capital,in its capital structure . From the long-term lenders point of view this ratio is not satisfactory. PROPRIETORY RATIO:It is also called shareholders equity to total equity ratio or net worth to tota l assets ratio or equity ratio. It compares the shareholder’s funds to total asset s. It is calculated by dividing shareholder’s funds by total assets. Proprietory Ratio = Shareholder’s Fund Total Assets It helps to determine the long-term solvency of a company. This ratio measures t he protection available to the creditors. Higher the ratio, lesser is the likel ihood of insolvency in future, as the management has to use lessor debts and vic e versa. Thus, this ratio is of great importance to the creditors.

Years Shareholder s Funds (Rs. In crores) Total Assets (Rs. In crores) Proprietory Ratio 2007 12899.97 167659.4 2008 22555.99 251388.95 2009 24663.26 344658.11 2010 46820.21 399795.07 2011 49883.02 379300.96 Interpretation: Above table exhibits the proprietary ratio of the bank for last five years . It was 7% in 2007 ,After that was 8% in year 2008. Similarly it was once again redu ced to 7 % in the year 2009 . After 2009 it registered increase and was 12% and 13% in the year 2010and 2011 respectively. Hence it leads to the conclusion ow ners have less than 13% stake in the total assets of the bank. It is not a good sign as far the long term solvency is concerned. FIXED ASSETS TURNOVER RATIO: It is also called as Sales to Fixed Assets Ratio.It measures the efficient use o f fixed assets.This ratio is a measure of efficient use of fixed assets.it is ca lculated as:

 

0.07 0.08 0.07 0.12 0.13

Fixed Assets Turnover Ratio = Cost of goods sold or Sales Net Fixed Assets It measures the efficiency and profit earning capacity of the business. Higher t he ratio, greater is the intensive utilization of fixed assets and a lower ratio shows under utilization of the fixed assets. This ratio has a special importanc e for manufacturing concerns where investment in fixed assets ,is vey high and t he profitability is significantly dependent on the utilization of these assets.

Year Sales (Rs. In crores) Net Fixed Assets (Rs. In crores) Fixed Assets Turnover Ratio 2007 9409.9 4038.04 2.33 2008 13784.49 3980.72 3.46 2009 22994.29 3923.42 5.86 2010 30788.34 4108.89 7.49 2011 31092.55 3801.62 8.17

Interpretation: Here the fixed assets employed in the business shows a decreasing trend except i n the year 2010 where fixed assets have again increased. This may be due to incr ease in rate of depreciation in subsequent years. Neverthless, the fixed assets turnover ratio has been consistently increasing .It indicates that fixed assets have been effectively used in the business without much additional investment in the period of study and also the capital is not blocked in fixed assets.

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

Credit means disbursement of advances Deposit mean sum of fixed deposit, Saving deposit and current deposit.

Year Advances (Rs. In crores) Deposits (Rs. In crores) Credit Deposit Ratio (in%) 2007 91405.15 99818.78 91 2008 146163.11 165083.17 88 2009 195865.6 230510.19 84

2010 2011

225616.08 218310.85

244431.05 218347.82

92 99

Interpretation: Above table exhibits credit deposit ratio of the bank during last 5 years. In th e year 2007 ratio was 91% and it declined to 88% and 84%in the year 2008 and 20 09 respectively. In the year 2010 and 2011 ratio was increased to 92% and 99% r espectively. it leads to conclusion that credit performance of the bank is very good. 4. CASH FLOW STATEMENT OF ICICI BANK

Particulars 2007 2008 2009 2010 Profit before tax 3,648.04 5,116.97 5345.32 6760.70 Net cash flow-operating activity -14,188.149 1869.21 -6908.92 Net cash used in investing activity -18,362.67 -17,561.11

2011 5,056.10 23,061.95 -11,631.15

3,857.88 6150.73 -2108.82 Net cash used in fin. activity 15,414.58 29,964.82 1,625.36 1382.62 4283.20 Net inc/dec in cash and equivalent 20,081.10 683.55 -8,074.57 8907.13 -4783.61 Cash and equivalent begin of year 17,040.22 37,357.58 38,041.13 29966.56 38873.69 Cash and equivalent end of year 37,121.32 38,041.13 29,966.56 38873.69 34090.08

SWOT ANALYSIS OF ICICI BANK STRENGHTS: 1)Online Services:ICICI Bank provides online services of all it’s banking facilities. It also pr ovides D-Mart account facilities on-line, s person can access his account from a nywhere he is.[D-Mart is a dematerialized account opened by a salaried person fo r purchase & sale of shares of different companies.] 2) Advanced Infrastructure:Branches of ICICI Bank are wellequipped with advanced technology to provide the customers withtaster banking services. All the computerized machines are locate d insuitable manner & are very useful to the customers & staff of thebank. 3) Friendly Staff:The staff of ICICI Bank in all branches is very friendly & help the customer s in all cases. They provide faster services along with bonding & personal rel ationship with the customers. 4) 12 hrs. Banking services:Compared to other bank ICICI bank provides long hrs. of services i.e. 8-8 servic es to the customers. This service is one of it’s kind & is very helpful for the customers who are in urgent need of money. 5) Other Facilities to the Customers & Employees:ICICI Bank alsoprovides other facilities like drinking water facilities, proper sittingarrangements to the customers. And there are also proper Ventilation& sa nitary facilities for the employees of the bank. 6) Late night ATM services: ICICI bank provides late night ATMservices to the customers. The ATM centers of ICICI bank workseven after 11:00pm. at night in certain branches.

Weakness: 1)High Bank Service Charges: ICICI bank charges highly tocustomers for the services provided by them when com pared toother bank & that is why it is only in the reach of higher class of soci ety. 2) Less Credit Period: ICICI bank provides credit facilities but only upto limited period. Even when the credit period is not over its ends reminder letters to the customers which may annoy them

OPPORTUNITIES: 1) Bank –Insurance services: The bank should also provide insurance services. That means the bank can have a tie-up with a insurance company. The bank will advertise & promote the different policies introduced by the insurance company & convince their customers to buy insurance policies. 2) Increase in percentage of Returns on increase: The bank should provide higher returns on deposits in comparison of the present Situation. This will also upto large extent help the bank earn profits &popula rity. 3) Recruit professionally guided students: Bank & Insurance is aspecial non-aid course where the students specialize in the functioning & services of the bank & also are knowledge aboutvarious tax policie s. The bank can recruit these students through tie-ups with colleges. Such stude nts will surely prove as an asset to thebank. 4) Associate with social cause: The bank can also associate itself with social causes like providing relief aid patients, funding towards natural calamities. But this falls in the 4th quadrant so the bank should neglect it.

THREATS 1) Competition: ICICI Bank is facing tight competition locally as well as internationally. Bank like CITI Bank, HSBC, ABM, Standard Chartered, HDFC also provide equivalent fac ilities like ICICI do and also ICICI do not have consistency in its internation al operation. 2) Net Services: ICICI Bank provides all kind of services on-line. There can be easy access to t he e-mail ids of the customers through wrong people. The confidential informatio n of the customers can be leaked easily through the e-mail ids. 3) Decentralized Management: Each branch manager is given the authority of taking decisions in their respecti ve branches. The decisions made by different managers are diverse and any one wr ong decision can laid to heavy losses to the bank.

4) No Proper Facilities To Uneducated customers:

ICICI Bank provides all services through electronic computerized machines. This creates problems to the less educated people. But this threat falls in the 4th quadrant so its negligible. The company can avoid this threat

FINDINGS,SUGGESTIONS & CONCLUSION Findings Profit before tax for the year ended March 31, 2011 (FY2011) was Rs. 5,117 crore (US$ 1,009 million), compared to Rs. 5,056 crore (US$ 997 million) for the year ended March 31, 2010 (FY2010). Profit after tax for FY2011 was Rs. 3,758 crore (US$ 741 million) compared to Rs . 4,158 crore (US$ 820 million) for FY2008 due to the higher effective tax rate on account of lower proportion of income taxable as dividends and capital gains. Net interest income increased 15% from Rs. 7,304 crore (US$ 1,440 million) for F Y2008 to Rs. 8,367 crore (US$ 1,650 million) for FY2009. While the advances decl ined marginally year-on-year, the net interest income increased due to improveme nt in net interest margin from 2.2% in FY2008 to 2.4% in FY2009. Operating expenses (including direct marketing agency expenses) decreased 14% to Rs. 6,835 crore (US$ 1,348 million) in FY2009 from Rs. 7,972 crore (US$ 1,572 m illion) in FY2008. The cost/average asset ratio for FY2009 was 1.8% compared to 2.2% for FY2008. During the year, the Bank has pursued a strategy of prioritizing capital conserv ation, 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 plac ed strong emphasis on efficiency improvement and cost rationalization. The Bank continues to invest in expansion of its branch network to enhance its deposit fr anchise and create an integrated distribution network for both asset and liabili ty products. In line with the above strategy, the total deposits of the Bank were Rs. 218,34 8 crore (US$ 43.0 billion) at March 31, 2009, compared to Rs. 244,431 crore (US$ 48.2 billion) at March 31, 2008. The reduction in term deposits by Rs. 24,970 c rore (US$ 4.9 billion) was primarily due to the Bank’s conscious strategy of payin g off wholesale deposits. During Q4-2009, total deposits increased by Rs. 9,283 crore (US$ 1.8 billion), of which Rs. 5,286 crore (US$ 1.0 billion), or about 57 %, was in the form of CASA deposits. The CASA ratio improved to 28.7% of total d

eposits at March 31, 2009 from 26.1% at March 31, 2008. The branch network of the Bank has increased from 755 branches at March 31, 2007 to 1,438 branches at April 24, 2009. The Bank is also in the process of opening 580 new branches which would expand the branch network to about 2,000 branches, giving the Bank a wide distribution reach in the country. In line with the strategy of prioritizing capital conservation and risk containm ent, the loan book of the Bank decreased marginally to Rs. 218,311 crore (US$ 43 .0 billion) at March 31, 2009 from Rs. 225,616 crore (US$ 44.5 billion) at March 31, 2008. Liquidity position The liquid ratio of the bank in the year 2005,2006 and 2009 is 0.60,0.67and 0.68 respectively and the year 2007 and 2008 liquid ratio is 0.97 and 0.88 respectiv ely 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 liqu idity position of the bank is quite satisfactory. Capital adequacy and return on capital employed The Bank’s capital adequacy at March 31, 2011 as per Reserve Bank of India’s revised guidelines on Basel II norms was 15.5% and Tier-1 capital adequacy was 11.8%, w ell above RBI’s requirement of total capital adequacy of 9.0% and Tier-1 capital a dequacy of 6.0%. The above capital adequacy takes into account the impact of div idend recommended by the Board. Also the capital is being effectively utilized in the bank as it shows better re turn on capital employed over years. Asset quality At March 31, 2011, 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 millio n). Dividend on equity shares Since the dividend per share has shown a promising increase for the period under study.It shows that the bank is following a sound dividend policy and is capabl e 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 withdr aw capital for a long time. Earnings per share The earnings per share for the period under study also shows a promising increas e.it suggests that bank has better profitability position and in future it can b e a better or attractive channel of investment for shareholders. Higher trends of credit deposit ratio – A positive sign High trends of credit deposit ratio reveals that bank has performed satisfactori ly 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 fulfillin g its major objective as regards to granting loans and accepting deposits.

Suggestions Some of the recommendation and suggestion are as follows: 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 ba nk should make efforts to increase its current assets to maintain a safety margi n and to maintain a better liquidity position. The profitability of the bank for the period under study is not satisfactory. Pr ofits 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 capit al structure. So in order to improve profitability, the bank should reduce its d ependence on external equities for meeting capital requirements. Consequently, t he interest expenses will decline and profits will increase which is good for th e bank. Similarly non productive expenses should be curtailed to improve profita bility. Higher trend of credit deposit ratio reveals that the bank has performed satisfa ctorily 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 w ell 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 i ts credit deposit ratio. Though the bank has been successful in increasing it’s deposits but to further imp rove upon such situation it can introduce some new and attractive schemes for pu blic. Such schemes can be in the form of higher rate of interest and shorter mat urity period for FD’s etc. The attention is required on the areas of growth, profitability , Service level and building talent. To increase the profit of bank, bank should decrease their operating expenses and increase their income. To increase its liquidity, bank should keep some more cash in Its hand instead of giving more and more advances. Introduce quality consciousness and standardization of the work System and procedures. Bank should try to finance more and more projects. Financing will help it to e arn higher amount of profits. The bank is having a greater reliance on debt capital. The increasing reliance o

n external equities may prove hazardous in the long run. So in order to remedy t his situation bank should increase its focus on internal equities and other sour ces of internal financing. Bank can also think for improving it’s day-to -day service to its clients. Such se rvice can be improved by providing prompt service and showing an attitude of cooperation to its clients. It will help to give a kind of confidence to the publi c and build a better public image. To achieve the objective of Rural development it should open more and more branc hes in different rural areas of the country. It will facilitate in providing hel p to rural poor farmers and other living below the poverty line. Bank can appoin t commission agents for different area who can encourage general public to inves t in the capital of the bank and make more deposits in ICICI Bank. The bank should simplify the procedure of advances for quick disbursement. To achieve organizational success a proper independent working atmosphere should be developed to achieve desired objective more effectively. Last but not least, bank should adopt branch automation experiment to control th e operational cost.

Conclusion On the basis of various techniques applied for the financial analysis of ICICI B ank we can arrive at a conclusion that the financial position and overall perfo rmance of the bank is satisfactory. Though the income of the bank has increased over the period but not in the same pace as of expenses. But the bank has succee ded in maintaining a reasonable profitability position. The bank has succeeded in increasing its share capital also which has increased around 50% in the last 5 years. Individuals are the major shareholders. The majo r achievement of the bank has been a tremendous increase in its deposits, which has always been its main objective. Fixed and current deposits have also shown a n increasing trend. Equity shareholders are also enjoying an increasing trend in the return on their capital. Though current assets and liabilities (current liquidity) of the bank is not so satisfactory but bank has succeeded in maintaining a stable solvency p osition over the years. As far as the ratio of external and internal equity is c oncerned, it is clear that bank has been using more amount of external equity in

the form of loans and borrowings than owner’s equity. Bank’s investments are also s howing an increasing trend. Due to increase in advances, the interest received b y the bank from such advances is proving to be the major source of income for th e bank.

BIBLIOGRAPHY Books Reffered: Accountancy. R.K. Mittal,A.K.Jain. Financial Management- Theory and Practice. Shashi.K.Gupta , R.K. Sharma. Essentials of Corporate Finance 2nd edition ,Irwin /McGraw-Hill.Ross, S.A.,R.W. Westerfield and B.D. Jordan. Financial management by Ravi M Kishor (Book) Financial management by M. Pandey (Book) Financial management by M R Agarwal(Book) Basic Financial Management ,8th edition ,Prentice -Hall,Inc. Scott, D.F., J.D Ma rtin, J.W. Petty and A.Keown. Internet websites: Www.Icicibank.Com Www.Moneycontrol.Com WWW.Money.Rediff.Com Www.Wikipedia.Org Www.Google.Com Www.Scribd.Com Www.Managementparadise.Com

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