“Performance Appraisal of ICICI Bank”

CHAPTER -1

INTRODUCTION
Every country needs the service of financial institution for accelerating the
pace of development. In India various financial institutions were set up after
independence only. At present the country has 20 institutions at the national level
and 50 at state even in this ICICI bank is one type of nationalized institution.
Government of India, World Bank and representative and private industry,
on January 5 1955 to encourage and assist industrial development and investment
in India founded ICICI bank limited. The date of commencement of business was
March 1, 1955 over the year ICICI has enveloped into a diversified financial
institution.

ICICI provided middle term and long term project financing for the
infrastructure and manufacturing sector, co-operate finance to meet the treasury
requirement of Indian companies, also financing as was as a comprehensive range
of Financial and advisory Service.

ICICI is a financial institution, which is known as INDUSTRIAL CREDIT

AND INVESTMENT CORPORATION OF INDIA. It established with main
objectives that to encourage and assist industrial development and investment in
India. The corporations were set up with an authorized capital of 50 cares.

The corporation set up in 1994 a commercial bank called ICICI banking,

corporation ltd. To provided compressive funding and net funding facilities to its
corporate clients. The ICICI banking corporation has been set up as 100%
subsidiaries.

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OBJECTIVE OF THE STUDY

Objectives are the ends that states specifically how goal be achieved. Every study
must have an objective for which all the efforts have been done. Without objective
no research can be conducted and no result can be obtained. On the basis of
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 Objective:-
1) To study the software used in ICICI Bank.
2) To analyse the financial statements of the corporation to assess it’s
true financial position by the use of ratios.
2. Secondary Objective:-
1) To find out the shortcomings in ICICI Bank.
2) To see whether ICICI Bank is going well or not in different areas.
Scope of The Study :

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IMPORTANCE OF THE STUDY

 By “FINANCIAL PERFORMANCE ANALYSIS OF ICICI Bank” we
would be able to get a fair picture of the financial position of ICICI Bank.
 By showing the financial performance to various lenders and creditors it is
possible to get credit in easy terms if good financial condition is maintained
in the company with assets outweighing the liabilities.
 Protecting the property of the business.
 Compliances with legal requirement.

METHODOLOGY:
The analysis and interpretation of financial statements is used to determine the
financial position and results of operation as well. A number of methods or devices
are used to study the relationship between different statements. An effort is made
to use those devices which clearly analysis the position of the enterprise.
 Trend Analysis
 Common –Size Statement
 Cash flow Analysis
 Ratio Analysis
TREND ANALYSIS
The financial statements may be analyzed by computing treds of series of
information. This methods determines the direction upwards or downwards and
involves the computation of the percentage relationship that each statement item
bears to the same item in base year. The information for a number of years is taken
up and one year, generally the first year, is taken as a base year.

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COMMON- SIZE STATEMENT

The common – size statements, balance sheet and income statement, are shown in
analytical percentages. The figures are shown as percentages of total assets, total
assets, total liabilities and total sales. The total assets are taken as 100 and different
assets are expressed as a percentage of the total. Similarly, various liabilities are
taken as apart of total liabilities. These statements are also known as component
percentage or 100 per cent statements because evry individual item is state as a
percentage of the total 100. The common –size statements may be prepared in the
following way:

CASH FLOW ANALYSIS

It is the study of the cycle of your business' cash inflows and outflows, with the
purpose of maintaining an adequate cash flow for your business, and to provide the
basis for cash flow management.

Cash flow analysis involves examining the components of your business that affect
cash flow, such as accounts receivable, inventory, accounts payable, and credit
terms. By performing a cash flow analysis on these separate components, you'll be
able to more easily identify cash flow problems and find ways to improve your
cash flow.

RATIO ANALYSIS
Ratio analysis is a widely used tool of financial analysis. It is defined as the
systematic use of ratio to interpret the financial statements so that the strength and
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weaknesses of a firm as well as its historical performance and current financial
condition can be determined. The term ratio refers to the numerical or quantitative
relationship between two variables.

LIMITATIONS OF STUDY
On preparation of the project, I faced many problems of the following constraints.
 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
published annual reports of ICICI Bank for the study period.
 Due to the limited time available at the disposable , the study has been confined
for a period of 5 years (2007-2011).
 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
competitors data.
 The study of financial performance can be only a means to know about the
financial condition of the company and cannot show a through picture of the
activities of the company

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CHAPTER-2
COMPANY’S PROFILE

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

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ICICI Bank Ltd.,
Headquarters 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.

Revenue ▲ USD 15.06 billion

▲ USD 120.61 billion (at March 31, 2011.)

Total assets

Website www.icicibank.com

Introduction of Company

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 was formed in 1955 at the initiative
of the World Bank, the Government of India and representatives of Indian
industry. 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

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first Indian company and the first bank or financial institution from non-Japan Asia
to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the
context of the emerging competitive scenario in the Indian banking industry, and
the move towards universal banking, the managements of ICICI and ICICI Bank
formed the view that the merger of ICICI with ICICI Bank would be the optimal
strategic alternative for both entities, and would create the optimal legal structure
for the ICICI group's universal banking strategy. The merger would enhance value
for ICICI shareholders through the merged entity's access to low-cost deposits,
greater opportunities for earning fee-based income and the ability to participate in
the payments system and provide transaction-banking services. The merger would
enhance value for ICICI Bank shareholders through a large capital base and scale
of operations, seamless access to ICICI's strong corporate relationships built up
over five decades, entry into new business segments, higher market share in
various business segments, particularly fee-based services, and access to the vast
talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved
the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, with
ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank
in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and
by the High Court of Judicature at Mumbai and the Reserve Bank of India in April
2002. Consequent to the merger, the ICICI group's financing and banking
operations, both wholesale and retail, have been integrated in a single entity.

ICICI BANK TODAY

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ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment
Corporation of India) is India's largest private sector bank by market capitalization
and second largest overall in terms of assets. Total assets of Rs. 3,562.28 billion
(US$ 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, 2011. The Bank also has a
network of 1,640 + branches (as on February 11, 2010) and about 4,721 ATMs in
India and presence in 18 countries, as well as some 24 million customers (at the
end of July 2007). ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery
channels and specialized subsidiaries and affiliates in the areas of investment
banking, life and non-life insurance, venture capital and asset management. (These
data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India.
ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and
Vadodara, Mumbai and the National Stock Exchange of India Limited, and its
ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in
overseas markets and has the largest international balance sheet among Indian
banks. ICICI Bank now has wholly-owned subsidiaries, branches and
representatives offices in 18 countries, including an offshore unit in Mumbai. This
includes wholly owned subsidiaries 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 representative offices in Bangladesh, China, Malaysia,
Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas,
the Bank is targeting the NRI (Non-Resident Indian) population in particular.

ICICI reported a net profit of Rs. 3,758 crore (US$ 741 million) for
FY2011. The bank's Current and savings account (CASA) ratio increased to 28.7%

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 “Performance Appraisal of ICICI Bank”
at March 31, 2011 from 26.1% at March 31, 2010. Increase of Rs. 5,286 crore in
CASA deposits in quarter ended March 31, 2011. ICICI Bank is one of the Big
Four Banks of India with State Bank of India, Axis Bank and HDFC Bank

ICICI Bank Group

Capital structure
The Authorized Capital of ICICI Bank is 214.75 Crores. The Issued,
Subscribed and Paid Up Capital is divided into 1113250642 equity shares @
Rs.10/- each

BUSINESS

 Vision
To be the leading provider of financial services in India and a major global
bank.

 Mission
 We will leverage our people, technology, speed and financial capital to: be
the banker of first choice for our customers by delivering high quality,
world-class service.
 Expand the frontiers of our business globally.

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 Play a proactive role in the full realisation of India’s potential.
 Maintain a healthy financial profile and diversify our earnings across
businesses 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.

CHAPTER-3
FINANCIAL ANALYSIS

Introduction Meaning Of Financial Statements

Financial statements refer to such statements which contains financial information
about an enterprise. They report profitability and the financial position of the
business at the end of accounting period. The team financial statement includes at
least two statements which the accountant prepares at the end of an accounting
period. The two statements are: -
 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 account shows the
results of operations during a certain period of time in terms of the revenues

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obtained and the cost incurred during the year. Thus the financial statement
provides a summarized view of financial positions and operations of a firm.
Meaning of Financial Analysis
The term financial analysis is also known as ‘analysis and interpretation of
financial statements’ refers to the process of determining financial strength and
weakness 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 the
decision under consideration to the total information contained in the financial
statement. The second step is to arrange the information in a way to highlight
significant relationship. The final step is interpretation and drawing of inference
and conclusions. Financial statement is the process of selection, relation and
evaluation.

FUNCTIONAL CLASSIFICATION IN VIEW OF

FINANCIAL MANAGEMENT OR CLASSIFICATION
ACCORDING TO TESTS
Table-1
Liquidity Long-term Activity Ratios Profitability
Ratios Solvency and Ratios
Leverage Ratios
-Current Ratio Financial Operating Inventory Turnover In Relation to Sales.
-Liquid Ratio Composite Ratio. Gross Profit Ratio.
(Acid) Test or -Debt. Equity Debtors Turnover Ratio Operating Ratio.
Quick Ratio. Ratio Fixed Assets Turnover Operating Profit
-Absolute liquid or -Debt to Total Ratio Ratio.
-Cash Ratio. Capital Ratio Total Asset Turnover Net Profit Ratio.
-Debtors -Interest Ratio Expenses Ratio
Turnover Ratio Coverage Ratio Working Capital In relation to
-Creditors Turnover -Capital Gearing Ratio Turnover Ratio. investments
Ratio Payables Turnover Return on Investments.
-Inventory Turnover Ratio Return on capital.
ratio Capital Employed Return on Equity

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Turnover Ratio Capital.
Return on total
Resources
Earning per share.
Price Earning Ratio.

PROFIT AND LOSS ACCOUNT OF ICICI BANK LTD.

Profit and Loss Account

Income statement is prepared to determine the operational position of the

concern. It is a statement of revenues earned and the expenses incurred for earning
that revenue. If there is excess of revenues over expenditures it will show a profit
and if the expenditure are more than the income then there will be a loss. The
income statement is prepared for a particular period, generally a year. When
income statement is prepared for the year ending on 31 st March 2011 then all
revenues and expenditures falling due in that year will be taken into account
irrespective of their receipt or payment.
Table-2
Mar 2007,Mar 2008,Mar 2009,Mar2010,Mar2011. ( In crores)
2006-07 2007-08 2008-09 2009-10 2010-11

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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 3299.15 4479.51 6690.56 8154.18 7045.11
Expenses
Total Expenses 9870.04 14076.96 23049.06 31638.42 29771.04
Operating Profit 2956 4690.67 5874.40 7960.69 8925.23
Other Provision 428.80 1594.07 2226.36 2904.59 3808.26
And Contigencies
Provision For Tax 522 556.53 537.82 898.37 1358.84
Net Profit 2005.20 2540.07 3110.22 4157.73 3758.13
Extraordinary 0.00 0.00 0.00 0.00 (0.58)
Items
Profit B/F 53.09 188.22 293.44 998.27 2436.32

Total 2058.29 2728.29 3403.66 5156.00 6193.87

Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 632.96 759.33 901.17 1227.70 1224.58
Corporate Dividend 90.10 106.50 153.10 149.67 151.21
Tax
Pershare Data
Eps(Rs.) 27.22 28.55 34.59 37.37 33.78
Equity Dividend(%) 85.00 85.00 100.00 110.00 110.00
Book Value(Rs) 170.35 249.55 270.37 417.64 445.17
Appropriations
Transfer To 547.00 248.69 1351.12 1342.31 2008.42

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Statutory Reserve
Transfer To Other 600.01 1320.34 0.00 0.01 0.01
Reserve
Proposed 723.06 865.83 1054.27 1377.37 1375.79
Dividend/Transfer
To Govt
Balance C/F To 188.22 293.44 998.27 2436.32 2809.65
Balance Sheet
Total 2058.29 2728.30 3403.66 5156.01 6193.87

Interpretation of Profit & Loss

1. On the year 2006-07 total income was Rs12826.63 crores and it has been
increased by Rs. 5941.59 crores on the year 2008.09. Relatively it has been
increased as an upwards direction up to the year 2010-11, There after it has been
decreased by Rs. 902.84 crores on the year 2010-11 as compared to the year 2009-
10.
2. Total expenditure has been increased as an upward direction from the year 2006-
07 to 2009-10, there after it has been decreased by Rs. 1867.38 crores an the year
2010-11.
3. Operating profit has been increased in an orderly manner from the year 2006-07
to 2010-11.

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4. Net profit was Rs.2005.20 crores on the year 2007-08, it has been increased by
Rs. 534.87 on the year 2008-09, There after , it has been increased up to the year
2009-10 but on the year 2010-11 it has been decreased by Rs 399.6 crores.
5. The percentage of equity dividend on the year 2006-07 and 2007-08 was equal
i.e. Rs. 85%. It has been increased by 25% on the year 2008-09, 2009-10 and
2010-11.

BALANCE SHEET OF ICICI BANK LTD.

Meaning of Balance Sheet:-

The American institute of Certified Public Accounts defines Balance Sheets as, “A

tabular statement of summary of balances (debits and credits) carried forward after

an actual and constructive closing of books of account and kept according to

principles of accounting.” The purpose of the balance sheet is to show the

resources that the company has, i.e. its assets, and from where those resources

come from, i.e. its liabilities and investments by owners and outsiders.

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The balance sheet is one of the important statements depicting the financial

strength of the concern. It shows on the one hand the properties that it utilizes and

on other hand the sources of those properties. The balance sheet shows all the

assets owned by the concern and all the liabilities and claims it owes to owners and

outsiders. The balance sheet is prepared on a particular date. The right hand side

shows properties and assets. Normally there is no particular sequence for showing

various assets and liabilities.

Table-4
Mar 2007, Mar 2008,Mar 2009,Mar2010,Mar2011. ( In crores )

2006-07 2007-08 2008-09 2009-10 2010-11

CAPITAL AND
LIABILITIES:
Total Share 1086.75 1239.83 1249.34 1462.68 1463.29
Capital
Equity Share 736.75 889.83 899.34 1112.68 1113.29
Capital
Share 0.02 0.00 0.00 0.00 0.00
Application
Money

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Preference Share 350.00 350.00 350.00 350.00 350.00
Capital
Reserves 11813.20 21316.16 23413.92 45357.53 48419.73
Revaluation 0.00 0.00 0.00 0.00 0.00
Reserves
Net Worth 12899.97 22555.99 24663.26 46820.21 49883.02
Deposits 99818.78 165083.17 230510.19 244431.05 218347.82
Borrowings 33544.50 38521.91 51256.03 65648.43 67323.69
Total Debt 146263.25 226161.17 306429.48 356899.69 335554.53
Other Liabilities 21396.17 25227.88 38228.64 42895.39 43746.43
And Provisions
Total Liabilities 167659.42 251388.95 344658.12 399795.08 379300.96

ASSETS:
Cash And 6344.90 8934.37 18706.88 29377.53 17536.33
Balances With
RBI
Balances With 6585.07 8105.85 18414.45 8663.60 12430.23
Banks,Money At
Call
Advances 91405.15 146163.11 195865.60 225616.08 218310.85
Investments 50487.35 71547.39 91257.84 111454.34 103058.31
Gross Block 5525.65 5968.57 6298.56 7036.00 7443.71
Accumulated 1487.61 1987.85 2375.14 2927.11 3642.09

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Depreciation
Net Fixed Assets 4038.04 3980.72 3923.42 4108.89 3801.62
Capital Work In 96.30 147.94 189.66 0.00 0.00
Progress
Other Assets 8702.59 12509.57 16300.26 20574.63 24163.62
Contingent 97507.79 119895.78 177054.18 371737.36 803991.92
liabilities
Bills for 9803.67 15025.21 22717.23 29377.55 36678.71
collection
Book value(Rs.) 170.35 249.55 270.37 417.64 445.17
EPS 27.22 28.55 34.59 37.37 33.78
No. of equity 736716094 889823901 899266672 1112687495 1113250642
shares

Interpretation of Balance Sheet

1. Total share capita on the year 2006 -07 was Rs 1086.75 crores and it has been
increased by Rs 153.08 crores on the year 2008-09, there after it has been
increased as an upward direction up to the year 2010-11.
2. The preference share capital have been equal in all the years commencing from
2006-07 to 2010-11 i.e. Rs 350.00 crores.
3. The net worth was Rs. 12899.97 crores and there after it has been increased as
an upward direction up to the year 2010-11
4. Total debt was Rs. 146263.25 crores on the year 2006-07, there after it has been
increased as on upward direction up to the year 2010-11. But on the year 2010-11
it has been decreased by Rs. 21345.16 crores as compared to the year 2010-11.

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5. On the year 2006-07 net fixed asset was Rs 4038.04 crores it has been decreased
by Rs. 57.32 crores on the year 2006-07. On the year 2010-11 it has been increased
by Rs. 185.47 crores as compared to the year 2009-10. On the year 2010-11 it has
been decreased by Rs309.27.

CHAPTER-4
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 FY2010 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 FY2010 to Rs. 8,367 crore (US$ 1,650 million) for FY2011. While the
advances declined marginally year-on-year, the net interest income increased

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due to improvement in net interest margin from 2.2% in FY2010 to 2.4% in
FY2011.
 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 million) in FY2010. The cost/average asset ratio for FY2010
was 1.8% compared to 2.2% for FY2010.
 During the year, the Bank has pursued a strategy of prioritizing capital
conservation, liquidity management and risk containment given the
challenging economic environment. This is reflected in the Bank’s strong
capital adequacy and its focus on reducing its wholesale term deposit base
and increasing its CASA ratio. The Bank is maintaining excess liquidity on
an ongoing basis. The Bank has also placed strong emphasis on efficiency
improvement and cost rationalization. The Bank continues to invest in
expansion of its branch network to enhance its deposit franchise and create
an integrated distribution network for both asset and liability products.

Suggestions
 Although the short term liquidity position is quite satisfactory as per
revealed by liquid ratio but the current ratio is below the ideal ratio of 2:1.So
the bank should make efforts to increase its current assets to maintain a
safety margin and to maintain a better liquidity position.
 The profitability of the bank for the period under study is not satisfactory.
Profits are increasing but not with same pace as of the expenditure due to
higher reliance on debt capital in the form of borrowings and loans for
financing capital structure. So in order to improve profitability, the bank
should reduce its dependence on external equities for meeting capital
requirements. Consequently, the interest expenses will decline and profits

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will increase which is good for the bank. Similarly non productive expenses
should be curtailed to improve profitability.
 Higher trend of credit deposit ratio reveals that the bank has performed
satisfactorily as regard to granting loans and advances to generate income. It
suggests that the credit performance of bank is good and it is performing its
business well by fulfilling the major objective of granting credit and
accepting deposit. So in order to have more creditability in the market the
bank should maintain its credit deposit ratio.
 Though the bank has been successful in increasing it’s deposits but to further
improve upon such situation it can introduce some new and attractive
schemes for public. Such schemes can be in the form of higher rate of
interest and shorter maturity period for FD’s etc.
 Bank should try to finance more and more projects. Financing will help it to
earn higher amount of profits.

 The bank is having a greater reliance on debt capital. The increasing reliance
on external equities may prove hazardous in the long run. So in order to
remedy this situation bank should increase its focus on internal equities and
other sources of internal financing.
 Bank can also think for improving it’s day-to -day service to its clients. Such
service can be improved by providing prompt service and showing an
attitude of co-operation to its clients. It will help to give a kind of confidence
to the public and build a better public image.
 To achieve the objective of Rural development it should open more and
more branches in different rural areas of the country. It will facilitate in
providing help to rural poor farmers and other living below the poverty line.
Bank can appoint commission agents for different area who can encourage

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general public to invest in the capital of the bank and make more deposits in
ICICI Bank.
 The bank should simplify the procedure of advances for quick disbursement.
 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 the operational cost.

Conclusion
On the basis of various techniques applied for the financial analysis of ICICI
Bank we can arrive at a conclusion that the financial position and overall
performance of the bank is 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
succeeded 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 major 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 an increasing trend.
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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
position over the years. As far as the ratio of external and internal equity is
concerned, 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
showing an increasing trend. Due to increase in advances, the interest received by
the bank from such advances is proving to be the major source of income for the
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.
 Basic Financial Management ,8th edition ,Prentice -Hall,Inc. Scott, D.F., J.D
Martin, 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

2011 2012 S.C.S (A) College, Puri

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 Www.Managementparadise.Com

THANKS

2011 2012 S.C.S (A) College, Puri

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