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ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion at March 31, 2010 and profit after tax Rs. 40.25 billion for the year ended March 31, 2010. ICICI Bank is spread across the length and breadth of the country. The Bank has a network of 2,035 branches and about 5,518 ATMs in India and presence in 18 countries. It comes as little surprise that ICICI Bank tops private sector banks and comes first in overall ranking. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. ICICI Bank Limited was founded in 1955 and is based in Mumbai. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI¶s shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank¶s acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI 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 specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company¶s UK subsidiary has established branches in Belgium and Germany.
It offers savings accounts, fixed deposits, security deposits, recurring deposits, child education plans, salary accounts, EEFC accounts, and resident foreign currency accounts; and consumer and commercial cards. The company also provides home loans, automobile loans, commercial business loans, two wheeler loans, personal loans, and credit cards, as well as dealer funding and financing products, and loans against securities and gold. In addition, it offers tax saving bonds, government of India bonds, mutual funds, initial public offers, investment in gold, foreign exchange services, and senior citizens savings schemes; and health, overseas travel, student medical, motor, home, and life insurance products. Further, the company provides dematerialization services; NRI services, such as accounts, money transfer, investments, property solutions, and loans; and online services, such as bill payment, shopping, ticket booking, account to card transfer, prepaid mobile recharge, share trading, money order, and customer services. Additionally, it offers business services, which include transaction banking, treasury banking, investment banking, capital market, custodial, international banking, rural and agri banking, structured finance, and technology finance; and kiosk banking, inquiry card, payment cards, phone and mobile banking, and online tax services, as well as cash management services, business loans, current accounts, trade, and other services for small and medium sized enterprises. Expansion and brand recognition have come through acquisitions and mergers as well (Anagram Finance and Bank of Madura). The bank believes its strength is constant innovation in retail products and hi-tech delivery channels. Nearly 70 per cent of its transactions take place electronically, and it was among the first banks to go online for all services including opening and using accounts, utility payments and Web trade. Technologydriven transaction banking has strong growth potential. Right now, though, the MNC banks lead in terms of service quality in these areas. In Phone or Net banking, ICICI Bank is on sixth place. However, the shocker is that in overall service quality, ICICI Bank ranks a poor 12th.
SWOT ANALYSIS OF ICICI BANK STRENGHTS 1) Online Services: ICICI Bank provides online services of all its banking facilities. It also provides D-Mart account facilities on-line, so a person can access his account from anywhere he is. [D-Mart is a dematerialized account opened by a salaried person for purchase & sale of shares of different companies.] 2) Advanced Infrastructure: Branches of ICICI Bank are well equipped with advanced technology to provide the customers with taster banking services. All the computerized machines are located in suitable manner & are very useful to the customers & staff of the bank. 3) Friendly Staff: The staff of ICICI Bank in all branches is very friendly & helps the customers in all cases. They provide faster services along with bonding & personal relationship with the customers. 4) 12 hrs. Banking services: Compared to other bank ICICI bank provides long hrs. of services i.e. 8-8 services 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 also provides other facilities like drinking water facilities, proper sitting arrangements to the customers. And there are also proper Ventilation & sanitary facilities for the employees of the bank. 6) Late night ATM services: ICICI bank provides late night ATM services to the customers. The ATM centers of ICICI bank works even after 11:00pm. at night in certain branches. 7) Brand Name: ICICI Bank has earned a reputation in the market for extending quality services to the market vis-à-vis its competitors. It has earned a strong Brand name in banking in a very short span of time. 8) Market Share: ICICI Bank has the largest market share of 34% in the IT & ITES industry in Hyderabad according to our survey (within the limitation of the sample size.) 9) Huge Network: ICICI Bank has the highest number of linked branches in the country. The bank operates through a network of 450 BRANCHES AND over 1800 ATMs across India, thus enabling them to serve customer in better way.
10) Diversified Portfolio: ICICI Bank has all the products under its belt, which help it to extend the relationship with existing customer. ICICI Bank has umbrella of products to offer their customers, if once customer has relationship with the bank. Some Products, which ICICI Bank is offering are: Retail Banking Business Banking Merchant Establishment Services (EDC Machine) Personal loans & Car loans Demat Services with E-Broking Mutual Fund (ICICI Bank is the Distributor of all Mutual Fund) Insurance Housing Loans 11) Salary Account: One very interesting thing that we have observed in our survey is that ICICI is having an edge over other banks in case of Salary Account. Most of the companies are having their Salary Account with ICICI even if their Current Account is with any other Bank. This is mainly because of the huge network of ATMs and branches of ICICI. 12) Treasury Department: ICICI is the only bank which is having its treasury department especially for Hyderabad Customers. So customers can get the best rates for foreign exchange. 13) Aggressive Marketing: ICICI Bank is known for its aggressive marketing of its products. Recent Endorsement of its product by AMITABH BAHCHAN proves the same. This gives ICICI an edge over other banks. 14) Technology: From its inception, ICICI Bank has adopted a policy of selecting internationally proven and specialized Packaged Systems for its technology. ICICI banks technology platform has been acknowledged globally as one of the best in terms of robustness, flexibility and cost efficiency. ICICI Bank is in a position to leverage this platform to further build cost and service advantage.
1) Transaction Cost: ICICI Bank charges high cost for its transactions. Through our data analysis we have find out that most of the small companies prefer nationalized banks only because of this cost factor. Also the group has found out that there are companies which are going for multi bank system i.e. they are using only those facilities of ICICI Bank which are provided at cheaper rates (read Salary Account) and for other services they are going to nationalize banks and MNCs (read Forex). So there exists a huge potential for ICICI Bank if they are ready to make their transaction cost flexible. 2) Focus Only On High End Customers: The bank targets only the top bracket of clients and does not cater to the needs of small customers. Due to this reason the bank may sometimes loose good clients. 3) Defensive Approach In Lending: ICICI Bank has a defensive approach in lending. Mainly to IT & ITES companies Bank do not provide loan as these companies are not having collaterals so bank hesitate in giving loans to them. Because of this policy companies prefer nationalized banks and ICICI Bank in turn sometimes loose potential customers. 4) Little Presence Outside India: ICICI Bank is having little presence Outside India, because of which companies are preferring MNC Bank, mainly Citibank. So if ICICI Bank tries to emerge outside India then it has a huge potential of customers. 5) Poor Customer Care/Service: With its aggressive marketing ICICI Bank is rapidly increasing its customer base. They are not however, increasing the number of e mployees accordingly. This is leading to deterioration of the standard of customer service.
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. These will also upto large extent help the bank earn profits & popularity.
3) Recruit professionally guided students: Bank & Insurance is a special non-aid course where the students specialize in the functioning & services of the bank & also are knowledge about various tax policies. The bank can recruit these students through tieups with colleges. Such students will surely prove as an asset to the bank. 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. 5) New IT & ITES Companies: IT & ITES sector is on a boom in the Indian market context, with new companies mushrooming in the market; it opens the door for ICICI bank to capture the huge untapped market. 6) Dissatisfied Customers of Other Banks: The group from its survey and analysis of IT companies have found out that there are many companies which are not satisfied with its current bank, so ICICI with its superior service quality and long working hours can capture those customers. 7) Remittances: From the analysis group has also found out that ICICI bank has very little presence as far as the EEFC account is concerned. Companies prefer to bank with MNCs (which have greater presence in the foreign countries) and nationalized banks (which according to the companies provide lower transaction rates) to get their inward remittances in spite of ICICI being providing one of the most competitive rates. So the bank can promote its EEFC account better and get the key to the door of huge potential market. 8) Business advising for smaller Players: The analysis has also indicated that the concept of business advising though very popular with the higher end players is virtually non existent in the lower end of the market. ICICI should take this opportunity to provide business advising to the smaller companies at competitive rates and try to take the first mover advantage.
THREATS 1) Competition: ICICI Bank is facing tight competition locally as well as internationally. Bank like CITI Bank, HSBC, ABM, Standered Chartered, HDFC also provide equivalent facilities like ICICI do and also ICICI do not have consistency in its international operation. 2) Net Services: ICICI Bank provides all kind of services on-line. There can be easy access to the e-mail ids of the customers through wrong people. The confidential information 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 respective branches. The decisions made by different managers are diverse and any one wrong 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. 5) Advent of MNC banks: Large numbers of MNC banks are mushrooming in the Indian market due to the friendly policies adopted by the government. This can increase the level of competition and prove a potential threat for the market share of ICICI bank. 6) Dissatisfied Customers: The analysis indicated that though most of the companies are satisfied with the products offered by ICICI bank but the poor customer support/ service is creating a lot of dissatisfaction among the customers, this can prove to be a serious problem as far as the market reputation of the bank is concerned and cane be a major threat in future business acquisition. 7) Ever improving nationalized banks: With PSU banks like SBI going all out to compete with the private banks and government giving them a free hand to do so, it can prove to be serious threat for banks like ICICI.
COMPETITIVE ADVANTAGES OF THE ICICI BANK
EMPLOYEES STOCK OPTION SCHEME The progress of the Bank in a short period of six years would not have been possible without the dedication of staff members of the Bank and the team spirit displayed by staff of both the Bank and ICICI. The Bank has ensured that all its employees are given adequate training. During 1999-2000, on an average 37 hours of training was given to employees, which compares well with the best globally. The pay scales of employees were recently rationalised to align them with the levels of remuneration of a few of the comparable banks. Further, in order to attract talent and motivate its staff, the Bank has introduced an Employee Stock Option Scheme. The Scheme drawn up in accordance with the guidelines prescribed by the Securities and Exchange Board of India (SEBI) has been implemented effective February 21, 2000. In all 17,13,000 stock options have been granted to 426 employees and Directors of the bank and ICICI Limited. Of these, 3 senior managerial personnel of the Bank were granted 81,250 stock options. The list, which may be treated as part of the Report of the Directors, giving details of stock options granted to senior managerial personnel as also the certificate of the Statutory Auditors, subject to above reference, on the Employee Stock Option Scheme as required under the guidelines of SEBI is available for inspection by the Members. These are available for perusal at this venue with the Company Secretary and the copies are available at the Registered Office for perusal by the Members during the business hours on all working days. The current year being the first in which the stock option scheme was implemented, there have been no instances of vesting of stock options, exercise of stock options for conversion to the underlying equity shares, lapse of stocks option due to passage of time, variation of terms in the Scheme, etc., since its introduction. No employee or director has been give stock options amounting to 5 per cent or more of the options granted during the year. Further, no employee or director has been granted stock options equal to or exceeding 1 per cent of the issued capital of the Bank at the time of grant of stock options. CORPORATE GOVERNANCE
The Bank is committed to follow the tenets of good corporate governance. Right from its inception, the Bank has assiduously practised good governance. It has set up among other committees of the Board, a Compensation Committee which looks into and recommends to the Board the amount of compensation payable to the executive directors, the fees payable to other directors and framing the internal guidelines for and management of the employee stock option scheme. The Nomination Committee reviews the functioning of the members of the Board. The Audit and Risk Committee reviews and monitors audit of branches and overall systems and procedures. The Committee also monitors periodically risk management measures to control risks like market risks, operational risks, liquidity risks, etc. EXEMPTION OF CERTAIN BRANCHES FROM YEARLY AUDIT Members may recall that they had approved at the last Annual General Meeting in terms of Section 228 of the Companies Act, 1956, the proposal of the Bank to seek exemption of certain branches from yearly audit. The Bank has since received the approval of the Government of India exempting 19 of its branches which had in their books outstanding total advances amounting to Rs. 1.00 crore or less, per branch from the purview of yearly audit. As required in terms of the approval of the Government, the Order exempting these branches would be read out at this meeting. With the net work of branches and extension counters increasing to 97 during 1999-2000, we are contemplating seeking approval of the government for including additional branches to the above list of 19 branches. I may assure the Members that satisfactory arrangements are made for the scrutiny and checking of accounts of these branches at regular intervals, by responsible persons who are competent to scrutinise and check accounts and also that these branches would be subject to audit at least once in a period of three years.
THE FUTURE The Indian economy was quite clearly on the upward path as evidenced by an expected growth of around 5.9 per cent in 1999 - 2000. This was brought about mainly by a high growth rate in the industrial sector of 8 per cent compared with just 3.9 per cent in 1998-99.
This growth came under stable inflationary conditions with the Wholesale Price Index increasing by a mere 3.1 per cent in 1999-2000 as against 5.9 per cent in 1998-99. The higher growth in the industrial sector was supported by an increase of 21.9 per cent in bank credit. It is estimated that the Indian economy would grow by 6.5 to 7 per cent in 2000-2001, which has to be supported by a growth rate of at least 8 per cent in the industrial sector (on a higher base of 1999-2000). The Reserve Bank of India has provided the right impulses, on April 1, 2000 itself, to propel the economy further in 2000-2001 by reducing the Cash Reserve Ratio and Bank Rate by 1 percentage point each, which has helped in lowering interest rates by 50200 basis points. However, with growing competition with other savings instruments, especially mutual funds, there would be pressure on the supply of funds for banks. Demand for funds, on the other hand, would be higher because of increased needs of the industrial sector as well as of the government (whose expected borrowings are close to Rs. 117 billion). Therefore, there could be some pressure on liquidity, and interest rates during the second half of the year. Inflation too has already started rising to a 73-week high of 6.3 per cent as on May 6, 2000. Further, with closer integration into the world economy, with the process of globalisation, we need to monitor the developments taking place elsewhere apart from those within the country. The recent decision of the Federal Reserve of New York to raise interest rates is also indicative of interest rates rising in the rest of the world. We, in India and more particularly banks like ours, cannot afford to ignore these changes. There is, therefore, some compulsion to think hard on these issues. The future would continue to be dynamic, vibrant, competitive and challenging to banks. Banking and payment systems are expected to grow rapidly in the years to come. Thanks to the straight through processing facilitated by technology, banks like ours which have leveraged advanced banking technology for their activities are expected to garner much of this business flows. Further banks that are able to sense the direction of changes and attune their business processes in the right direction, stand to post good results and surge ahead. We are confident that, with our expertise that we have built so far, we would be able to steer clear and take advantages of many emerging opportunities that the environment is likely to provide.
RISK MANAGEMENT IN KEY SUBSIDIARIES ICICI Securities provides investment banking services, including corporate advisory, fixed income and equity services, to corporate customers. All investment banking mandates, including underwriting commitments, are approved by the Commitments Committee comprising the Managing Director and CEO and relevant group heads, of ICICI Securities. ICICI Securities is a primary dealer and has government of India securities as a significant proportion of its portfolio. It has a corporate risk management group for managing principally the credit and market risks arising out of the various activities of the company.
ICICI Prudential Life Insurance is exposed to business risks arising out of the nature of products and underwriting, and market risk arising out of the investments made out of the corpus of premiums collected and the returns guaranteed to policyholders. ICICI Prudential Life Insurance believes it has a well-developed framework for assessing and managing these risks. We believe it has the largest team of underwriters among private sector insurance companies in India. The key risks and the risk management framework are periodically reviewed by the Risk Management and Audit Committee of its board of directors. The Investment Committee oversees investment-related risk management by approving and reviewing the implementation of the investment policy within the norms stipulated by the Insurance Regulatory and Development Authority. ICICI Prudential Life Insurance has an assetliability management framework for its investment related risks. At year-end fiscal 2004, linked insurance plans constituted about 48.0% of the portfolio. These are exposed to low market risk as the returns are linked to the value of underlying investments. In order to manage the interest rate risk on the non-linked portfolio, ICICI Prudential Life Insurance has hedged the single premium nonparticipating portfolio by duration matching, re-balanced at monthly intervals. For the participating portfolio, ICICI Prudential Life Insurance has adopted an asset allocation strategy which includes investments in equities. The equity portfolio is benchmarked to a stock market index. ICICI Prudential Life Insurance follows a disciplined approach to portfolio construction to manage the volatility of equity investments and achieve superior equity asset class returns over the long term. The portfolio largely comprises index stocks and is constructed with small limits for sector and stock deviation visàvis index stock weighs. In addition, there are limits on exposures to companies, groups and industries. ICICI Lombard General Insurance is principally exposed to risks arising out of the nature of business underwritten and credit risk on its investment portfolio. In respect of business risk, ICICI Lombard General Insurance seeks to diversify its insurance portfolio
across industry sectors and geographical regions. It focuses on product segments that have historically experienced low loss ratios. It also has the ability to reduce the risk retained on its own balance sheet by re-insuring a part of the risks underwritten. Its investments are governed by the investment policy approved by its board of directors within the norms stipulated by the Insurance Regulatory and Development Authority. The Investment Committee overseas the implementation of this policy and reviews it periodically. Exposure to any single entity is normally restricted to 5.0% of the portfolio and to any industry to 10.0% of the portfolio. Investments in debt instruments are generally restricted to instruments with a domestic credit rating of AA or higher.
TECHNOLOGY We seek to be at the forefront of usage of technology in the financial services sector. We use information technology as a strategic tool for our business operations, to gain a competitive advantage and to improve our overall productivity and efficiency. Our technology initiatives are aimed at enhancing value, offering customers enhanced convenience and improved service while optimizing costs. Our focus on technology emphasises:
Electronic and online channels to: offer easy access to our products and services; reduce distribution and transaction costs; reach new target customers; and enhance existing customer relationships. Application of information systems to: effectively market to our target customers; monitor and control risks; and identify, assess and capitalise on market opportunities. We also seek to leverage our domestic technology capabilities in our international operations.
TECHNOLOGY ORGANISATION While we have dedicated technology groups for our products and services for retai and l corporate customers, our enterprise-wide technology initiatives are coordinated by the Technology Management Group.
BANKING APPLICATION SOFTWARE We use a banking application software that is flexible and scaleable and allows us to effectively and efficiently serve our growing customer base. In fiscal 2003, our core banking software was upgraded and enabled with multicurrency features. A central stand server -in provides services all days of the week, throughout the year, to delivery channels. The server stores the latest customer account balances, which are continuously streamed from the core banking database. We have a data center in Mumbai for centralised data base management, data storage and retrieval.
ELECTRONIC AND ONLINE CHANNELS We use a combination of physical and electronic delivery channels to maximise customer choice and convenience, which has helped the differentiation of our products in the marketplace. Our branch banking software is flexible and scaleable and integrates well with its electronic delivery channels. Our ATMs are sourced from some of the world¶s leading vendors. These ATMs work with the branch banking software. At year-end fiscal 2004, we had 1,790 ATMs across India. We were one of the first banks to offer online banking facilities to our customers. We now offer a number of online banking services to our customers for both corporate and retail products and services. Our telephone banking call centers have a total seating capacity of 2,075 seats, across two locations, at Mumbai and Hyderabad. These telephone banking call centers use an Interactive Voice Response System. In fiscal 2003, weupgraded the existing hardware and deployed a new integrated Interactive Voice Response System to enhance capacity. The call centers are based on the latest technology and provide an integrated customer database that allows the call agents to get a complete overview of the customer¶s relationship with us. The database enables customer segmentation and assists the call agent in identifying cross-selling opportunities. We launched mobile banking services in India in March 2000, in line with our strategy to offer multi-channel access to our customers. This service has now been extended to all mobile telephone service providers across India and non-resident Indian customers in the United States of America, the United Kingdom, the Middle East and Singapore.
HIGH-SPEED ELECTRONIC COMMUNICATIONS INFRASTRUCTURE We have a nationwide data communications network linking all our channels and offices. The network design is based on a mix of dedicated leased lines and satellite links to provide for
reach and redundancy, which is imperative in a vast country like India. The communications network is monitored 24 hours a day using advanced network management software.
TREASURY AND OPERATIONS RELATING TO COMMERCIAL BANKING FOR CORPORATE CUSTOMERS We use technology to monitor risk limits and exposures. We have invested significantly to acquire advanced systems from some of the world¶s leading vendors and connectivity to the SWIFT network. In fiscal 2003, we successfully centralised our corporate banking back office operations and rolled out a business process management solution to automate our activities in the areas of trade services and general banking operations. Through integration of the workflow system with the imaging and document management system, we have achieved substantial savings and practically eliminated the use of paper for these processes. In fiscal 2004, we have centralised the systems of the treasuries of all our international branches and subsidiaries. As a result, the processing of transactions as well as the applications used for deal entry are now centrally located and maintained out of India.
CUSTOMER RELATIONSHIP MANAGEMENT We have implemented a customer relationship management solution for automation of customer handling in all key retail products. Our customer relationship management solution enables various channels to service the customer needs at all touch points, and across all products and services. The solution has been deployed at the telephone banking call centers as well as a large number of branches. We have also undertaken a retail data warehouse initiative to achieve customer data integration at the back-office level. We have implemented an Enterprise Application Integration initiative across our retail and corporate products and services, to link various products, delivery and channel systems. This initiative underpins our multi-channel customer service strategy and seeks to deliver customer related information consistently across access points.
DATA CENTER AND DISASTER RECOVERY SYSTEM While our primary data center is located in Mumbai, a separate disaster recovery data center has been set up in another city and is connected to the main data center in Mumbai. The disaster recovery data center has facilities to host critical banking applications in the event of a disaster at the primary site.
Balance Sheet of ICICI Bank
(Rs in crore)
Mar '06 Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities Assets Cash & Balances with RBI Balance with Banks, 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) 8,934.37 8,105.85 146,163.11 71,547.39 5,968.57 1,987.85 3,980.72 147.94 12,509.57 251,388.95 119,895.78 15,025.21 249.55 18,706.88 18,414.45 195,865.60 91,257.84 6,298.56 2,375.14 3,923.42 189.66 16,300.26 344,658.11 177,054.18 22,717.23 270.37 29,377.53 8,663.60 225,616.08 111,454.34 7,036.00 2,927.11 4,108.89 0.00 20,574.63 399,795.07 371,737.36 29,377.55 417.64 17,536.33 12,430.23 218,310.85 103,058.31 7,443.71 3,642.09 3,801.62 0.00 24,163.62 379,300.96 803,991.92 36,678.71 444.94 27,514.29 11,359.40 181,205.60 120,892.80 7,114.12 3,901.43 3,212.69 0.00 19,214.93 363,399.71 694,948.84 38,597.36 463.01 1,239.83 889.83 0.00 350.00 21,316.16 0.00 22,555.99 165,083.17 38,521.91 203,605.08 25,227.88 251,388.95 1,249.34 899.34 0.00 350.00 23,413.92 0.00 24,663.26 230,510.19 51,256.03 281,766.22 38,228.64 344,658.12 1,462.68 1,112.68 0.00 350.00 45,357.53 0.00 46,820.21 244,431.05 65,648.43 310,079.48 42,895.39 399,795.08 1,463.29 1,113.29 0.00 350.00 48,419.73 0.00 49,883.02 218,347.82 67,323.69 285,671.51 43,746.43 379,300.96 1,114.89 1,114.89 0.00 0.00 50,503.48 0.00 51,618.37 202,016.60 94,263.57 296,280.17 15,501.18 363,399.72 Mar '07 Mar '08 Mar '09 Mar '10
Profit & Loss account of ICICI Bank (in Rs. Cr.)
Mar '06 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 Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Proposed Dividend/Transfer to Govt Balance c/f to Balance Sheet Total 248.69 1,320.34 865.83 293.44 2,728.30 28.55 85.00 249.55 9,597.45 1,082.29 2,360.72 623.79 2,616.78 0.00 5,274.23 1,409.35 16,281.03 2,540.07 0.00 188.22 2,728.29 0.00 759.33 106.50 13,784.50 5,036.62 18,821.12
22,994.29 6,962.95 29,957.24
30,788.34 8,878.85 39,667.19
31,092.55 8,117.76 39,210.31
25,706.93 7,292.43 32,999.36
16,358.50 1,616.75 4,900.67 544.78 3,426.32 0.00 8,849.86 1,638.66 26,847.02 3,110.22 0.00 293.44 3,403.66 0.00 901.17 153.10
23,484.24 2,078.90 5,834.95 578.35 3,533.03 0.00 10,855.18 1,170.05 35,509.47 4,157.73 0.00 998.27 5,156.00 0.00 1,227.70 149.67
22,725.93 1,971.70 5,977.72 678.60 4,098.22 0.00 10,795.14 1,931.10 35,452.17 3,758.13 -0.58 2,436.32 6,193.87 0.00 1,224.58 151.21
17,592.57 1,925.79 6,056.48 619.50 2,780.03 0.00 10,221.99 1,159.81 28,974.37 4,024.98 0.00 2,809.65 6,834.63 0.00 1,337.95 164.04
34.59 100.00 270.37
37.37 110.00 417.64
33.76 110.00 444.94
36.10 120.00 463.01
1,351.12 0.00 1,054.27 998.27 3,403.66
1,342.31 0.01 1,377.37 2,436.32 5,156.01
2,008.42 0.01 1,375.79 2,809.65 6,193.87
1,867.22 1.04 1,501.99 3,464.38 6,834.63
Cash Flow Statement (in Rs Cr)
Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents Mar '06 3096.61 4652.93 -7893.98 7350.90 4110.25 12929.97 17040.22 Mar '07 3648.04 23061.95 -18362.67 15414.58 20081.10 17040.22 37121.32 Mar '08 5056.10 -11631.15 -17561.11 29964.82 683.55 37357.58 38041.13 Mar '09 5116.97 -14188.49 3857.88 1625.36 -8074.57 38041.13 29966.56 Mar '10 5345.32 1869.21 6150.73 1382.62 8907.13 29966.56 38873.69
Ratios of ICICI Bank
Mar '06 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(%) Return on Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Management Efficiency Ratios Interest Income / Total Funds Net Interest Income / Total Funds 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 Ratios Asset Turnover Ratio Profit And Loss Account Ratios Interest Expended / Interest Earned Other Income / Total Income 69.62 2.59 71.14 1.07 76.28 0.17 73.09 0.86 68.44 0.92 8.36 3.78 0.22 4.58 2.22 1.49 1.21 0.15 8.58 4.58 0.08 2.94 9.55 4.06 0.10 5.49 2.79 1.19 1.04 0.17 9.65 5.49 0.10 4.52 10.60 4.29 0.02 6.31 2.76 1.40 1.12 0.20 10.62 6.31 0.11 5.61 9.82 3.99 0.08 5.83 2.60 1.30 0.96 0.18 9.90 5.83 0.10 5.14 8.82 4.08 0.08 4.74 2.59 1.41 1.08 0.17 8.90 4.74 0.09 4.60 2.67 17.55 14.12 56.24 14.33 11.40 1.01 1.01 3.43 12.30 10.81 82.46 13.17 12.31 0.90 0.90 3.51 11.81 10.51 62.34 8.94 8.80 417.64 417.64 3.66 11.45 9.74 56.72 7.58 7.55 444.94 444.94 5.66 -39.58 12.17 10.63 7.79 -26.54 463.01 463.01 10.00 8.50 36.75 196.87 193.24 -10.00 10.00 42.19 316.45 199.52 -10.00 11.00 51.29 354.71 346.21 -10.00 11.00 48.58 343.59 351.04 -10.00 12.00 49.80 293.74 356.94 -Mar '07 Mar '08 Mar '09 Mar '10
Operating Expense / Total Income Selling Distribution Cost Composition Balance Sheet Ratios Capital Adequacy Ratio Advances / Loans Funds(%) Debt Coverage Ratios Credit Deposit Ratio Investment Deposit Ratio Cash Deposit Ratio Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Leverage Ratios Current Ratio Quick Ratio Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times Earnings Per Share Book Value
87.59 46.07 5.77 7.45 1.39 1.33
83.83 41.15 6.99 9.50 1.25 1.22
84.99 42.68 10.12 5.27 1.25 1.20
91.44 46.35 10.14 4.42 1.25 1.20
90.04 53.28 10.72 3.91 0.33 1.26
34.08 27.36 65.82 72.58 52.30 28.55 249.55
33.89 28.84 64.80 70.22 65.12 34.59 270.37
33.12 29.08 66.35 70.51 52.34 37.37 417.64
36.60 31.00 63.23 68.87 49.41 33.76 444.94
37.31 32.33 110.96 66.70 44.79 36.10 463.01
REFERENCES 1. http://in.reuters.com/finance/stocks/companyProfile?symbol=ICBK.BO 2. http://www.icicibank.com/aboutus/about-us.html 3. http://www.naukrihub.com/india/banking-insurance/top-companies/icici.html 4. http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=411168 5. http://money.outlookindia.com/article.aspx?93174 6. http://www.oppapers.com/essays/Swot-Analysis-Icici-Bank/185043?topic 7. http://www.managementparadise.com/forums/miscellaneous-projects/85241-swoticici.html 8. www.moneycontrol.com ¾ Markets