ICICI Bank is India's largest private sector bank with total consolidated assets of Rs.

11,242.81 billion at March 31, 2018 and profit after tax of Rs. 67.77 billion for the year
ended March 31, 2018. ICICI Bank has appointed Sandeep Bakhshi as the new Managing
Director (MD) and CEO after Chanda Kochhar quit the bank. ICICI Bank was originally
promoted in 1994 by ICICI Limited, an Indian financial institution. The bank and their
subsidiaries offer a wide range of banking and financial services including commercial
banking, retail banking, project and corporate finance, working capital finance, insurance,
venture capital and private equity, investment banking, broking and treasury products and
services.

ICICI Bank had a network of 4,856 branches and 13,792 ATMs as on 30 September 2018.
ICICI Bank is present across 17 countries, including India. The bank's equity shares are listed
in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and
their American Depositary Receipts (ADRs) are listed on the New York Stock Exchange. The
bank is the first Indian Bank listed on New York Stock Exchange.

ICICI Bank Ltd was incorporated in the year 1994 as a part of the ICICI group with the name
ICICI Banking Corporation Ltd. The initial equity capital was owned 75% by ICICI and 25%
by SCICI Ltd, a diversified finance and shipping finance lender of which ICICI owned 19.9%
at December 1996. Pursuant to the merger of SCICI into ICICI, ICICI Bank became a
wholly-owned subsidiary of ICICI. In September 10, 1999, the name of the Bank was
changed from ICICI Banking Corporation Ltd to ICICI Bank Ltd

ICICI Group consists of-

 ICICI Prudential Life Insurance Company

ICICI Securities
ICICI Lombard General Insurance Company
 ICICI Prudential AMC & Trust
ICICI Venture
 ICICI Direct
 ICICI Foundation
Disha Financial Counselling
ICICI Bank also has banking subsidiaries in UK and Canada
Company Profile

Chief Executive Mr. Sandeep Bakhshi

Company Secretary Mr. Ranganath Athreya

Business Group ICICI Group
Issue Date 05-Aug-1997

Fundamentals

Market Capitalization ( Rs cr ) 221,913.95

Book Value 158.56

Debt / Equity 7.28
P/E 32.74

Dividend Yield % 0.66

EPS 10.52
Return on Net Worth 6.63
Current Ratio 2.38
Quick Ratio 20.44
Interest Cover 1.80
PROFITABILITY ANALYSIS

1. The ROE has show a gradual decline and stands at a high ratio of 10% stating that the
bank may have disproportionate level of debt that is driving its return. This has also
hindered profit growth on debt burden
2. ICICI Bank exhibits a weak ROE against its peers, as well as insufficient levels to
cover its own cost of equity this year. Its concerning leverage level means its ROE is
already supported by high debt, raising questions over whether ROE will further
decline in the future.

ICICI Bank is overvalued based on earnings compared to the IN Banks industry average.

ICICI Bank is overvalued based on earnings compared to the India market.

ICICI Bank is good value based on expected growth next year. ICICI Bank is overvalued
based on assets compared to the IN Banks industry average.

CHALLENEGES

as a decline in profit, rising bad loans among others. At present, the main challenges for
Bakhshi will be to restore investors’ confidence, which has taken a beating recently.

CORPORATE GOVERNANCE-ICICI Bank has "gaps" in its risk control mechanisms. “An
ongoing investigation at ICICI Bank on extending a loan with a potential conflict of interest
has also focused authorities' attention on the bank's governance. Adverse findings may create
a reputational risk, particularly if they point at broader weaknesses in management

Increasing profitability: ICICI Bank — India’s third-largest lender by assets — registered a

near 50 per cent dip its fourth-quarter net profit as its provisions for bad loans surged. Net
profit for the three months to March 31 plunged to Rs 1,020 crore from Rs 2,025 crore a year
earlier.

Bad loans: Many analysts are of the view that Bakhshi will be responsible for fixing the non-
performing assets problem, which has been troubling the private lender for the last three
fiscal years. ICICI Bank's gross non-performing loans (NPAs) as a percentage of its total
assets stood at 8.84 per cent as of March 31, 2018, up from 7.82 per cent at the end of
December quarter.