SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT ANALYSIS OF SHARES OF ICICI BANK LTD.

SUBMITTED BY: GURPAL SINGH F08082

anticipating and responding to the changing needs of the economy.78 billion for the quarter ended June 30.674. and the vast Indian diaspora spanning the globe. significant industrial & infrastructure investment potential. Goals ICICI Group sees before it a wide opportunity spectrum: increasing household incomes & consumption in both rural and urban India. 8. We have sought to be adaptable and flexible. branches in United States. We have placed strong emphasis on a framework of ethics and good governance that balances the interests of different stakeholders. Russia and Canada. Bangladesh. We. 3. Sri Lanka. life and non-life insurance. China. The Bank currently has subsidiaries in the United Kingdom.ICICI Bank is India's second-largest bank with total assets of Rs. South Africa. venture capital and asset management. Hong Kong. We have believed in innovation to enhance the range of products and services that we offer and provide greater convenience to the customer. Thailand. We have believed in building depth of talent and leadership in the organisation and empowering the team to achieve organizational goals. Bahrain. The Bank has a network of 1.499 branches and about 4. • Vision “To be the preferred brand for total financial and banking solutions for both corporates and individuals” • Mission We have believed in capitalising on emerging opportunities and contributing to the growth of our country. are well positioned to capitalise on these opportunities. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking.816 ATMs in India and presence in 18 countries. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). as a multi specialist financial services group. These values and beliefs will continue to be the foundation of our strategy. 2009 and profit after tax Rs. Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates. the dynamic business environment and the expectations of our stakeholders. 2009. • • Our products & services include: . Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. Singapore.19 billion (US$ 77 billion) at June 30.

Tax Payment .Fx Remittance .Letter of Credit .Escrow Account Cash Management service .Forward Contract Trade .Collection .Insurance .Derivatives .Export Finance .Bank Guarantee .Current Account RCA TCA M2O Business Loans Vendor/Dealer Finance Working Capital Finance Cash Credit Equipment Finance Credit Card Securitization Vendor Bill Discounting Merchant Account Medical Equipment Loans Forex .Payment Other Services .Investment Some of the features that give our customers a value-added banking experience include .Export Bill Negotiation .Import Finance .

being a “zero balance” account it enables our customers to utilize their financial resources more effectively. Besides. Our ‘Click and Brick' distribution network includes branches. in India The Banker Magazine . customer service.2005The Asset Best Bank in India . internet banking. We believe in establishing a personal relation with our customers so that we can understand their needs better and provide effective customized service We have received several prestigious national and international awards in recognition of our innovation in banking. Customer relationship. export. phone banking and mobile banking.2004 Outlook Money Best Bank 2004 Business India Best domestic commercial bank Asianmoney Best emerging bank in India Global Finance Best multi .Technology Our technology driven banking system ensures a wide reach. These include: Triple AAA Best Cash Management Country Award in India . We also have products targeted at specific groups. doorstep banking.2--4 Euromoney Travel and Tourism India 's Most Customer Friendly Bank . phone banking. import and advisory services. ATMs. UK Excellence in Retail Financial Services 2003 Asian Bankers Journal . It offers remittance. Product range Our products spectrum includes easy loans. The zero balance roaming current account caters specifically to entrepreneurs.channel strategy 2003 The Banker Magazine UK Bank of the Year 2003. instant online transactions and faster dealings. etc. Size & Network We have a wide customer base. technology focus and human resource practices.

" it stated. The feeling that the government had done enough is not only in India but as much as 9 per cent of the respondents globally feel that their governments have done enough Industry The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years.000 crores.90. nearly 50 per cent of those surveyed plan to make new investments either this year or next year. While. the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate.7 per cent that existed between 1994-95 and 2002-03. India seems to be more optimistic than the average. according to the KPMG survey about 48 per cent respondents felt that the tax bills in future could be lesser while 54 per cent said that the companies should create more tax efficient operations. . The total assets of all scheduled commercial banks by end-March 2010 is estimated at Rs 40. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. In fact.4 per cent during the rest of the decade as against the growth rate of 16. In fact. It is expected that there will be large additions to the capital base and reserves on the liability side. Bank assets are expected to grow at an annual composite rate of 13. a survey titled 'global business reactions' to recession and strategies for recovery' carried out by the firm said. While talking about steps taken by the government it pointed out that a good number of India Inc feels that the government has taken enough measures including tax and interest rate cuts to face economic downturn. it added. The government had given three stimulus packages in the form of fiscal sops and tax cuts to boost the sagging Indian economy. The survey was carried out by KPMG in companies across 29 countries and involved more than 850 senior decision makers in the companies. At the time of global meltdown the Indian industry has also suffered losses either due to lower profits or reduced demand.Fundamental Analysis (E-I-C) Economy About 70 per cent of the respondents according to the survey expect recovery by 2010. "18 per cent think the government has done enough already or should not interfere. eight per cent of the respondents also feel that they were not impacted by the global recession at all. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan.

They are leaders in Internet banking.83 0.75 736.16 1.53 1. Scheduled banks constitute of commercial banks and co-operative banks.00 23. and banks from the Public Sector include Punjab National bank. On the other hand the Private Sector Banks are making tremendous progress.29 0. In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank. which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Citibank are some of the foreign banks operating in the Indian Banking Industry.112.75 0.73 .83 889.00 350. American Express Bank Ltd.92 1.000 branches of Scheduled banks spread across India.20 1. massive manpower and lack of modern technology. The Public Sector Banks(PSBs).34 0.00 350. Oriental Bank.00 350.00 11.68 1. SBI Commercial and International Bank Ltd.357.316. ABN-AMRO Bank.419.00 350.813.29 1. Unfortunately they are burdened with excessive Non Performing assets (NPAs).The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks. Cr. Vijaya Bank.00 45.249. Allahabad Bank among others. As far as the present scenario is concerned the Banking Industry in India is going through a transitional phase.239. ATMs.02 350.00 21. phone banking.113. ------------------- Mar '05 12 mths Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Mar '06 12 mths Mar '07 12 mths Mar '08 12 mths Mar '09 12 mths 1.462.in Rs. As far as foreign banks are concerned they are likely to succeed in the Indian Banking Industry.086. UCO Bank. COMPANY BALANCE SHEET Balance Sheet ------------------. ING Vyasa Bank. mobile banking.34 899.413.00 48. Bank of Rajasthan Ltd.68 0. ANZ Grindlays Bank. There are about 67.463.

544.803.15 146.058.53 8.92 9.547.642.84 111.431.07 379.310.388. Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs) 12 mths 12 mths 12 mths 12 mths 6.678.14 2.00 0.702.11 195.00 0.555.Revaluation Reserves Net Worth Deposits Borrowings 0.883.96 2 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09 12 mths Assets Cash & Balances with RBI Balance with Banks.88 38.17 Source : Asian CERC .766.605.60 17.454.39 43.17 25.616.717.300.30 147.95 344.509.487.39 91.4 Total Liabilities 251.26 46.62 96.396.510.659.388.00 12.23 29.79 119.91 51.72 3.663.56 7.45 29.00 0.71 170.487.60 225.08 379.82 33.671.64 445.94 189.746.818.88 18.33 12.99 24.55 270.17 230.37 8.228.795.256.054.03 65.323.079.95 344.968.895.62 167.105.980.663.51 8 Other Liabilities & Provisions 21.21 49.35 249.97 22.927.659.02 99.04 3.300.23 91.163.083.658.89 3.00 7.22 310.4 251.414.78 165.11 3.801.795.108.377.42 4.2 Total Debt 203.344.11 399.443.66 0.35 71.377.991.521.405.50 38.85 50.61 1.69 133.648.64 42.63 24.07 8.12 399.895.923.34 103.507.05 218.934.536.257.43 167.737.227.31 5.363.574.025.036.09 4.163.658.18 371.57 6.865.430.71 1.19 244.525.00 8.585.26 20.08 281.375.85 18.21 22.36 803.90 6.298.55 36.59 12.43 67.899.00 0.48 285.038.00 0.08 218.820.85 2.67 15.706.78 177.300.37 417.65 5.96 0 97.347.987.57 16.

25 10.76 39.73 0.45 1. Cr.957.89 737.79 2.70 5.13 -0.00 3.20 0.157.855.005.78 0.22 0.75 4.667.78 3.00 10.110.082.509.821.07 0.616.436.03 0.58 2.22 22.31 22.994.29 2.210.34 8.90 5.PROFIT AND LOSS ACCOUNT Profit & Loss account ------------------.85 39.540.931.50 5.570.95 29.77 0.795.10 35.281.00 293.24 16.638.78 1.00 53.616.409.878.834.409.170.05 35.177.900.32 0.881.55 8.41 1.426.098.484.24 2.849.040.50 1.93 1.360.89 3.35 3.036.092.847.09 .820.00 8.597.36 1.44 30.in Rs.9 2 Mar '05 12 mths 13.60 4.00 5.1 2 6.27 31.117.078.29 6.274.32 Net Profit for the Year Extraordionary Items Profit brought forward 2.00 998.072.00 188.02 Mar '07 12 mths 3.72 678.962.86 1.533.72 623.66 26.788.971.17 Mar '09 12 mths 3.725.14 1.977.35 16.62 18. ------------------- Mar '05 12 mths Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses Mar '06 12 mths Mar '07 12 mths Mar '08 12 mths Mar '09 12 mths 9.49 590.12 9.784.758.00 10.18 1.452.47 Mar '08 12 mths 4.826.03 Mar '06 12 mths 2.358.19 23.23 12.95 578.416.67 544.23 1.22 0.

00 10.70 149.55 85.29 0.29 Preference Dividend 0.79 2.32 5.64 1.728.00 1.377.44 2.22 Total 2.29 48.00 1.224.403.10 Per share data (annualised) Earning Per Share (Rs) 27.37 1.59 100.58 151.00 445.87 0.054.87 Source : Asian CERC VALUATION RATIOS Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Interest Spread Adjusted Cash Margin(%) Net Profit Margin Return on Long Term Fund(%) Mar 08 Mar 09 10.Total 2.37 110.27 3.35 Appropriations Transfer to Statutory Reserves 547.83 293.31 0.30 3.45 10.66 5.72 .01 1.00 11.29 2.193.60 354.42 0.058.66 0.33 106.69 1.21 33.227.22 --- 3.00 417.27 998.01 Proposed Dividend/Transfer 723.12 0.21 351.436.058.00 759.74 62.00 51.809.00 1.17 153.06 to Govt Balance c/f to Balance Sheet 188.00 901.66 11.403.320.00 270.34 865.00 Equity Dividend 632.156.65 6.342.10 34.728.55 248.01 1.17 2.22 Equity Dividend (%) 85.00 11.96 Corporate Dividend Tax 90.51 9.67 37.375.00 249.193.351.77 346.008.01 6.37 2.51 3.71 343.156.00 0.78 110.81 11.00 Book Value (Rs) 170.34 56.50 28.00 Transfer to Other Reserves 600.

61 0.80 7.31 2.83 2.58 8.14 5.99 91.76 1.11 5.86 84.00 26.10 5.64 445.12 10.02 6.96 0.40 1.67 69.43 1.17 417.60 1.64 445.14 76.53 72.44 42.82 3.62 6.29 9.12 0.09 0.86 26.Return on Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Management Efficiency Interest Income / Total Funds Net Funds Ratios 8.22 4.60 4.20 10.55 417.94 7.28 73.35 10.18 9.99 Interest Income / Total Non Interest Income / Total Funds Interest Expended / Total Funds Operating Expense / Total Funds Profit Before Provisions / Total Funds Net Profit / Total Funds Loans Turnover Total Income / Capital Employed(%) Interest Expended / Capital Employed(%) Total Assets Turnover Asset Turnover Ratio Interest Expended / Interest Earned Other Income / Total Income Operating Expense / Total Income Selling Distribution Cost Composition Capital Adequacy Ratio Advances / Loans Funds(%) Debt Coverage Credit Deposit Ratio Investment Deposit Ratio Cash Deposit Ratio Total Debt to Owners Fund Ratios Ratios 0.97 15.83 0.08 5.17 10.74 13.17 0.27 4.42 .68 46.90 5.31 0.30 0.

87 49.78.51 52.t seem to be very badly affected.42 0. This was well expected given the turmoil the economy went through last year but the company doesn.13 5.11 6.12 29.00 63.25 1.37 33.34 Mar '08 36. Profitability ratios Its treturn on net worth.23 68.41 Mar '09 Earnings Per Share Book Value 37.25 1.20 1.94 Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times 33. Valuation ratios Its operating profit per share has come down which may not be a good sign for the company bundled with the fact that its eps too has decreased.78 417.17 which has improved considerable from the previous year.60 31.20 0. which means its price earnings ratio is around 23 considering its eps of 33.17 RATIO ANALYSIS Shares of Icici bank trades at around 850 . its book value is around 445. as well as net profit ratio has come down. .Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Leverage Current Ratio Quick Ratio Ratios 1.35 70.08 66.64 445.

6. 26-Aug-2009.6823565.759.751.55.734.840573 31-Aug-2009.719.93. 07-Sep-2009.95.721.835.4778984.714. The bank is now retaining less of the dividends.763.2.753.728.743.755.716.52923.834.712.733.742. Prev Close.1. 14-Sep-2009.55.85. Leverage ratios Its current ratio is very low which can be a matter of concern for the bank.6.734.762.749.12.15.8431185.834.6.69.5.48.806. 10-Sep-2009.746.8591103.723.6.1.723.9865185.1.3.2.761.55.39506.4347024.8. 27-Aug-2009.720.3877518.6.63.768.2.39316.748.5. 08-Sep-2009.44549.52.5.8.750.32009.5.72.719.787.825.5810095.725.710. 18-Aug-2009.759.85.6528251.735.6.737.42652.719.820.763.759.726.771.816.55.95.65.828.6672288.828.38716.43.05.1.6. 20-Aug2009.5.744.760.75. 09-Sep-2009.2.1.46.2983565.751.736.56485. 03-Sep-2009. 21Aug2009.805.761.752.9. 02-Sep-2009.8493675.750.5205544.315486.15.551988.8.85.4.73349.726.9.35.743.788.824. Total debt to owner’s funds have also decreased which again is a good sign for the bank.844.6.2.704.5539932.2033565.02.749.761.31.05.High Price.57.9.15.745. TECHNICAL ANALYSIS Price Data for ICICI BANK Ltd.85.95.32183.815.85.700.4.744.25.9.708.794.758.896941.Total Traded Quantity.749.5323133.57.6220986.6.752.9.704.3744698.724.706.761.835.37223.7.750.151871.27220.19.35.741.789.48622.Open Price.733.791.5190778.4.7084715 24-Aug-2009.736.741. 28Aug2009.3883848.95.25.5146345.15.818. 19-Aug-2009.720.751.9.783.748.36390.15.740.91.4.745.Low Price.Average Price.820.74.762.54084.4.787.85.85.754.6.676924.95.95.714.767.Last Price.770.743.1.9261862.6882203.739.4760475.716.697.514822.830.39589.4704721.32255.796.773.4150165.789.4230806.95.148386. 25-Aug2009.716.33.767.767.795. 17-Aug-2009.775.792.Efficiency ratios Its cd ratio has improved which is a positive banking indicator.8.4.Close Price.39474.5.781.803.760.25.2.16.818.35716.730.760.4272335.6. 01-Sep-2009.276586.05.28647.15.762.95.15.55.08. from 17th August till date Date.55.5552551. 11-Sep2009.750.9.744. .62399.7.752.788.720.768.746.Turnover in Lacs.51491.735.736.4749016. 04-Sep-2009.752.1.95.998002.95.816.743.9.9.9.795.731.751.750.799.702.745.791.744.752.9.763.735.95.757. Its dividend payout ratio has increased.9.828.792.723.

2.72 791.25 4814.91 726.847.43 737.74 828.12 712.35 4593.830.1 4453.4 4782.02 771.85 4688.93 760.55 4808.16 758.57 742.6 4892.95 791.69 752.19 820.9 4394.844.15-Sep-2009.838.6.9 4458.31 761.55 4680.1 NIFT .8 4659.4 4829.3485597.6 741.846.824.48 752.45 4528.294676.2 4732.29216.35 4680.46 825.52 838.08 757.5.63 716.829. MOVING AVERAGE ICIC DAYS 17/08/2009 18/08/2009 19/08/2009 20/08/2009 21/08/2009 24/08/2009 25/08/2009 26/08/2009 27/08/2009 28/08/2009 31/08/2009 1/9/2009 2/9/2009 3/9/2009 4/9/2009 7/9/2009 8/9/2009 9/9/2009 10/9/2009 11/9/2009 14/9/2009 15/9/2009 I 714.4.35 4662.8 4642.33 768.1 4625.57 726.25 4819.35 4608.2 Y 4387.9 4805.

69 752.19 820.57 726.74 828.46 825.12 712.2 PRICE-VOLUME ANALYSIS .02 771.95 791.93 760.43 737.08 757.31 761.91 726.6 741.SUPPORT AND RESISTANCE LEVEL ICI DAYS 17/08/2009 18/08/2009 19/08/2009 20/08/2009 21/08/2009 24/08/2009 25/08/2009 26/08/2009 27/08/2009 28/08/2009 31/08/2009 1/9/2009 2/9/2009 3/9/2009 4/9/2009 7/9/2009 8/9/2009 9/9/2009 10/9/2009 11/9/2009 14/9/2009 15/9/2009 CI 714.63 716.48 752.52 838.57 742.72 791.33 768.16 758.

940.Both Price and Volume are increasing at an increasing rate. Thus this shows a bullish view of investors for the stock. I would recommend a definite buy at Rs 850 and a definite sell at Rs 950. 850 – Rs. CONCLUSION Considering the present condition as ICICI is making new highs everyday and the positive sentiment of the market. Price is likely to move between range of Rs. .

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