Project Report

on

ROLE OF BANKING IN INDIA ECONOMIC FOR

DEVLOPMENT WITH REFERENCE TO ICICI BANK

Submitted in partial fulfillment for the requirement of the award of graduate degree of
Bachelor of Commerce (B.COM Hons)

(Batch 2017-20)

Submitted by Submitted to:

GARIMA TYAGI Ms. MONIKA
B.COM .Hons

Acharya Vishnu Gupt Subharti College of Management

& Commerce
SWAMI VIVEKANAND SUBHARTI UNIVERSITY,MEERUT
 CERTIFICATE

I hereby declare that this project report title “ROLE OF BANKING IN INDIA
ECONOMIC FOR DEVLOPMENT WITH REFERENCE TO ICICI BANK ” in
is prepared and submitted by me to the department of Commerce and it is a result of my
own work & my indebtedness to other work / publications, if any, have been duly
acknowledge.

GARIMA TYAGI
 ACKNOWLEDGEMENT

I would like to specific my Acknowledgement to the ones humans, with out whose
contribution, aid and steerage this report might now not have seen the light of the day.
i am thankful and would love to specific my Gratitude to the Honorable Head of
department Ms. MONIKA Who were my project guide and the whole Institute for giving me
a Platform to have this high-quality opportunity and being able to get a glimpse of the
corporate international.

With Regards
GARIMA TYAGI
Table of content
Chapter PARTICULARS
no.
Acknowledgement
Preface
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………………….
2. Company’s Profile
a. Introduction to ICICI Bank…………
b. ICICI Bank today……………………
c. Business profile……………………...
d. Board of directors……………………
e. Board committee…………………….
f. Business objective……………………
g. Technology used in ICICI Bank……..
h. Products and services………………...
i. Awards and recognition………………
3. Research Methodology
a. Objective of study……………………
b. Importance of study………………….
c. Meaning of research…………………
d. Research problem……………………
e. Research design……………………...
f. Data collection method………………
g. Analysis and interpretation of data…..
h. Limitation of study…………………..
4. Financial Analysis
a. Introduction of the topic……………….
b. Method/Tools of financial analysis…….
c. Balance sheet of ICICI Bank…..
d. Profit and Loss Account of ICICI
Bank……………………………..
e. Financial statement analysis……………
1) Comparative financial
statement……………………….
2) Trend
analysis…………………….
3) Ratio
analysis……………………..

5. Findings ,Suggestions And

.
.
 Conclusion……………………….

6. Bibliography…………………………………………

Chapter 1

INTRODUCTION OF BANKING
MEANING AND DEFINITION

The established order of nearby rural banks in India marks another important landmark inside the
banking records of the us of a. these banks have been hooked up below the supply of the nearby
Rural Banks Ordinance, 1975, promulgated via the government on September 27, 1975. the
principle objective of establishing the regional rural banks is to provide credit and other facilities
in particular to the small and marginal farmers, agricultural people, artisans and small
entrepreneurs inside the rural areas. every RRB operates in the local limits distinct with the aid
of a notification. every RRB is subsidized through a public sector bank which affords help by
subscribing to its proportion capital, providing such managerial and financial help as my be at
the same time agreed upon and assisting within the recruitment and education employees at some
point of the initial duration of its functioning.

A local rural financial institution is popularly known as "GRAMIN financial institution". The
improvement manner of RRB’s started with the promulgation of an ordinance promulgated on
twenty sixth SEP 1975 (which in a while became changed with local Rural financial institution
Act, 1976) .it become on second OCT 1975, that the RRB, named the Prathma bank came into
life. The RRBs mobilize deposits generally from rural/semi-urban areas and offer loans and
advances normally to small and marginal farmers, agricultural workers, rural artisans and
different segments of priorityzone.
The technique became initiated with a view to provide higher customer provider with the
aid of having higher infrastructure, computerization, skilled paintings force,
commonplace publicity and advertising efforts and so on. The amalgamated RRBs also
gain from larger region of operation, better credit score publicity limits for excessive cost
and diverse banking sports.(okay., 2014)
WHICH MEANS:

local Rural Banks (RRBs) were installation as government-backed, regional primarily based
rural lending establishments beneath the nearby Rural Banks Act, 1976. RRBs were configured
as hybrid micro banking institutions, combining the local orientation and small scale lending
lifestyle of the cooperatives and the commercial enterprise lifestyle of commercial banks. Their
mission changed into to meet the credit needs of the tremendously unserved sections in the rural
areas -small and marginal farmers, agricultural laborers and socio-economically weaker sections.
(jose, 2016)

Definition:

“Regional Rural Banks are nearby level banking organizations working in specific states of
india. They have been created so that it will serve frequently the agricultural regions of india
with fundamental banking and economic offerings.”

2 Features/Characteristics:

 nearby Rural Banks were installation by way of the government of India underneath
nearby Rural Banks act 1976

 They had been established for the motive of providing credit and different centers to the
small and marginal farmers, agricultural laborers, artisans and small marketers in rural areas;

 RRBs had been together set up by means of the authorities of India, the state authorities
and the sponsor commercial bank

 The stocks in RRBs are held in the following ratios – 50% by way of government of
India; 35% by means of Sponsor bank and 15% by using nation authorities
 RRBs perform within certain local limits

 To start with they were installation with a capital of Rs. 1 crore which has been raised to
Rs. 5 crores by way of RRB amendment act 1987
 regional Rural Banks are public area banks

 they are legal to hold at the commercial enterprise of banking as defined within the
Banking law act 1949

 They're in a position to lend loans to the subsequent categories – Small and marginal
farmers, agricultural labourers each at the person stage and organization level, cooperative
societies including agricultural advertising societies or farmer provider societies for agricultural
and associated operations

 They must also grant loans and advances to artisans, small marketers and individuals of
small approach engaged in alternate, trade, industry or other manufacturing activities inside its
vicinity of operations
 The control of RRB is vested in a 9 member board of directors

 It's far headed with the aid of a chairman, who is appointed by RBI

 RRBs had been hooked up on 02.10.1975 as according to nearby Rural financial

institution act 1975

 The act become amended as RRB act 1976

 the first RRB inside the usa was Prathima Gramin financial institution placed inside the
state of Uttar Pradesh. (chand, n.d.)

1.3 Origin and growth:

Rural development has to play an outstanding function within the typical socio-economic
development of a country like India, wherein the majority of the populace lives in rural regions.
the rural quarter impacts immediately or not directly nearly all the economic activities in the
united states of america and affords employment to the most wide variety of humans. A massive
a part of the revenue of the government is likewise generated from the agricultural. the necessity
of rural finance changed into felt to offer protection & reliance to rural human beings like
moneylenders, landlords & buyers and so on. however they make the most farmers and small
entrepreneurs through charging exorbitant rate of hobby & pressure farmers to sell their product
at low price to them. Rural human beings also face the danger of unpredictable manufacturing of
plants due to excessive dependency on monsoon. consisting of problem of finance they also
suffer from lack of seeds, fertilizers, water deliver and other facilities which lead to rural in
deftness’. The local Rural banks were hooked up on October, 2d 1975. the primary objectives of
those banks are to provide credit and different centers specially to small and marginal farmers,
agricultural laborers’, rural artisans and small entrepreneurs as a way to increase agriculture,
exchange, commerce, industry and other productive sports in rural regions. The purpose of rural
banks is to bridge the credit gaps current in the rural regions and they're imagined to be powerful
devices of monetary improvement in rural India. they'll amplify efficient credit score to the rural
network and they may have simply rural orientation of their pastime and within the manner of
extending their activity. The records of nearby rural banks in India dates again to the 12 months
1975.
ADVANTAGES-

 SERVICE AT DOORSTEP: taking the banking services to your doorstep of rural

hundreds, particularly in hitherto unbanked rural areas.

 FIGURING OUT MONETARY NEEDS: discover the economic want of human beings
in particular in rural areas and assist them to fulfill their requirement of meeting finance.

 INEXPENSIVE LOANS TO WEAKER PHASE: making available institutional credit

score to the weaker section of the society who had by means of some distance little or no get
right of entry to to cheaper loans and had perforce been depending at the personal cash lenders.

 ENHANCEMENT OF BANKING CENTERS: to beautify banking & financing

facilities in backward or unbanked regions.

 MOBILIZATION AND CHANNELIZATION OF RURAL FINANCIAL

SAVINGS: mobilize rural savings and channelize them for helping effective activities in rural
regions.

 IMPARTING FINANCE: to provide finance to the weaker sections of society like

small farmers, rural artisans, small producer, rural workers’ and so on.

 SUPPLEMENTARY CHANNEL: to create a supplementary channel for the float the

imperative cash marketplace to the agricultural areas via refinances.(sanap, n.d.)
 Disadvantages-

 HASTE AND ABSENCE OF CO-ORDINATION IN DEPARTMENT

EXPANSION:Haste in department enlargement programme in many cases has led to
lopsidedness due to loss of co-ordination. In several cases, it couldn't be ensured that the
branches of the RRBs are opened at centres wherein no business or co-operative banking
facilities have been furnished.

 PROBLEMS IN DEPOSIT MOBILIZATION:The RRBs encountered some of

sensible difficulties in deposit mobilization. because of their restrictive lending policy which
excludes richer sections of the village society, these potential depositors display least interest in
depositing their money with these banks.

 CONSTRAINTS IN DEPOSIT MOBILIZATION:The RRBs exclude the richer

sections of the village society in providing direct monetary assistance. those sections have
capability financial savings to deposit. but, they are least inquisitive about depositing them with
the RRBs in view of the restrictive credit score policy of these banks.

 SLOW DEVELOPMENT IN LENDING INTEREST:The RRBs’ tempo of

growth in mortgage business is sluggish. For this the subsequent reasons may be given: (i)
There were restricted scope for direct lending by RRBs of their fields of operations; (ii) it's far
continually tough to identify the ability small borrowers and the financial institution staff were
required to make special and honest efforts in this regard.

 URBAN-ORIENTATION OF WORKFORCE:A vital practical difficulty experienced

in their working by using the RRBs is the city orientation of their group of workers that's hardly
ever willing to serve in rural regions. there's no authentic nearby involvement of the financial
institution group of workers within the village where they serve.

 PROCEDURAL RIGIDITIES:The RRBs comply with the methods of the scheduled

business banks in the count number of deposits and advancing loans which might be fairly
complicated and time-consuming from the villagers’ factor of view. (chand, n.d.)
RECENT TRENDS AND GROWING IMPORTANCE:
TRENDS-

 RRB act turned into further amended throughout the year as RRB act 1987 and the
subsequent are the changes as in step with the amendment made in the course of 1987:

 The legal capital changed into raised from Rs. 1 crore to Rs. 5 crores the chairman is to
be appointed by way of the involved sponsor financial institution in consultation with NABARD

 The sponsor banks should subscribe to the proportion capital as well as impart education
to personnel and offer managerial and monetary help for the primary 5 years of the functioning

Amalgamation of two or more RRBs may be carried out in consultation with NABARD, worried
state government and the sponsor bank

 Sponsor banks were empowered to monitor the progress in their RRBs once in a while to
conduct inspections, inner audits and to indicate measures to RRBs wherever vital

 From July 5, 2007, RBI has allowed RRBs to simply accept overseas foreign money
deposits from NRIs and individuals of Indian beginning

 In Tamilnadu there are two local Rural Banks – Pandian Gramin bank sponsored by way
of Indian remote places bank and Pallavan Gramin bank sponsored via Indian financial
institution

 At present there are 48 nearby Rural Banks functioning inside the united states. (sanap,
n.d.)
Objectives of Regional Rural Banks:
One extra phase has been taken notice of is the approaching overseas banks in India.
The RBI has shown positive interest to contain greater of overseas banks than the
present one lately. This step has paved a way for few more overseas banks to begin
business in India. The idea of establishing regional Rural Banks turned into mooted
within the Twenty factor monetary Programme of July 1975 to cater to the credit needs
of rural human beings.

The authorities of India appointed Narasimham Committee in July 1975 to installation

the brand new group so as:

(i) To offer employment to the agricultural knowledgeable children; and

(ii) To bring down the value of rural banks by using recruiting their staff at the equal
scale of pay and allowances as for the employees of state government/nearby our
bodies. It turned into at the recommendations that the primary five RRBs had been set
up on 2 October, 1975 under an Ordinance promulgated on 26 September, 1975 which
become replaced by way of the nearby Rural Banks Act of 1976.

The foremost targets of the RRBs are to expand the rural economy via offering credit
score and different centers for agriculture, change, commerce, industry and different
efficient activities in the rural areas, in particular to the small and marginal farmers,
agricultural labourers, artisans and small marketers.

Organisational structure of regional Rural Banks:

A local Rural financial institution is sponsored by means of a business financial
institution. For this motive, the sponsor financial institution requests the imperative
government, which issues a notification after consulting the concerned kingdom
government. typically, a RRB covers one district however it's also authorised to open its
branches in other districts. thus far the most insurance has been eight districts, as within
the case of Manipur regional Rural financial institution which covers the whole nation of
Manipur.
advertisements:

The accepted capital of an RRB at present is Rs.5 crores. The issued share capital is
Rs.1 crore now and is subscribed with the aid of the important authorities, the sponsor
financial institution and the worried nation government inside the ratio of 50:35:15.

The government of India raised the issued proportion capital of 27 RRBs from Rs.50
lakh to Rs.seventy five lakh and of forty two RRBs from Rs.75 lakh to Rs.1 crore
throughout 1994-95. This has raised the wide variety of RRBs having issued capital of
Rs.1 crore to 62 and people having issued capital of Rs.75 lakh to 122.

The RRB is governed through a Board of administrators who exercises all the powers
and discharges all the functions of RRB. It consists of a boss appointed by using the
significant government for 5 years, 3 directors nominated via the important authorities,
directors nominated via the involved kingdom authorities, and 3 administrators
nominated via the sponsor bank. commonly the Chairman of the RRB belongs to the
sponsor bank, although he is nominated via the valuable authorities.

The NABARD is vested with powers of inspection of RRBs and to call for any
information from them. For beginning of latest branches, packages are routed through
NABARD to order financial institution of India for trouble of licences. The obligation of
overseeing the general functioning of RRBs rests on NABARD. NABARD also presents
refinance at concessional hobby charge to RRBs.

capabilities of regional Rural Banks:

commercials:

the primary functions (or goals) of-the RRBs are:

1. To grant loans and advances to the weaker sections of the rural population, specially
to the small and marginal farmers, agricultural labourers, artisans and small marketers
who are engaged in agriculture, exchange, trade, enterprise and other productive
activities.
2. To grant loans and advances to cooperative societies, consisting of marketing
societies, agricultural processing societies, cooperative farming societies, primary
agricultural credit societies or farmers’ carrier societies for agricultural functions.

three. To take banking services to the doorsteps of the rural masses, especially in
hitherto unbanked rural regions.

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four. To mobilise rural financial savings by accepting deposits and channelize them for
effective activities inside the rural regions.

five. To create supplementary channel for float of credit score from the city money
market to the agricultural regions thru refinance.

6. To generate employment possibilities in rural areas.

7. To carry down the price of imparting credit in rural areas.

classified ads:

In recent years, the RRBs were accepted to increase advances for buy of durable client
goods and loans for diverse purposes against the security of gold embellishes, national
financial savings certificates, Indira Vikas Patras to each target and non-goal agencies
up to ten according to cent in their fresh lending in the over ceiling of 60 in step with
cent of sparkling loans to non-goal group lending.

they have additionally been allowed to problem guarantees on behalf of their clients with
none limitation a hundred in step with cent coins margin and as much as Rs.20 lakh on
Rs.40 lakh cash margin plus collateral protection of greater than 50 consistent with cent.

the limits for buy of demand drafts and cheque have been raised according to purchaser
and in keeping with branch to Rs.25,000 and Rs.1 lakh respectively. The RRBs can
trouble visitors’ cheques as agents in their sponsor banks and also offer locker facilities.
The RRBs can make investments their surpluses in UTI indexed schemes, fixed
deposits of income making time period lending establishments, bonds of nationalised
banks and other public zone undertakings, non-convertible debentures of blue chip
businesses and in credit score portfolios in their sponsor banks-challenge to a most of
15 in keeping with cent in their fresh lending for the duration of the yr. powerful 8
January, 1997, RRBs have been allowed to put money into corporate stocks and
debentures and units of mutual finances.

but these investments can't exceed 5 in line with cent of the RRBs’ incremental
deposits. they have got also been allowed to shop for company stocks and debentures
from the secondary marketplace. they're additionally free to fix their lending and deposit
costs.

Achievements (or development) of nearby Rural Banks:

The RRBs have carried banking to the doorsteps of rural hundreds. they have opened
branches in faraway and remoted villages which had no banking centers. initially
beginning with five RRBs at Moradabad and Gorakhpur in Uttar Pradesh, Jaipur in
Rajasthan, Bhiwani in Haryana and Malda in West Bengal on 2 October, 1975, the
RRBs have accomplished an outstanding increase over the years. As on June 30, 2003,
they numbered 196, overlaying 451 districts, with a network of 14,522 branches.

The combination remarkable deposits of 196 RRBs in 2002-03 were Rs.forty eight,346
crores. Their mixture direct and oblique super advances stood at Rs.15,944 crores in
2002-03. The credit score-deposit ratio multiplied from forty three per cent as at the end
of March, 1999 to forty five in keeping with cent in March, 2003. investment-deposit ratio
extended from 19.7 consistent with cent in 1998-ninety nine to 25.9 according to cent in
March 2003.

The loans and advances distributed through RRBs for agriculture accounted for
46.three per cent and the percentage of non-agricultural advances changed into 53.7
consistent with cent. Out of 196 RRBs, the wide variety of income making banks stood
at 156 in 2002-03 as compared with a hundred and seventy out of 196 in 2000-01.
Their running earnings fell by using 7.7 according to cent and internet earnings by using
-13.7 according to cent over the duration. The RRBs confirmed big improvement in
terms of discount of their NPAs (non-acting property). the percentage of NPAs in
general property declined from 18.8 percentage to 16.1 consistent with cent in 2002-03.

during 2002-03, the NABARD sanctioned Rs.1,406 crores as brief-time period credit
score limits for seasonal and non-seasonal agricultural operations to RRBs. It
sanctioned medium-term loans to RRBs amounting to Rs. 3 crores.

as a result, the RRBs were enormously a hit in mobilising rural savings. In advancing
loans, they have been concentrating on target corporations viz., small and marginal
farmers, landless labourers, rural artisans, self- hired persons, and so on. they've also
been playing a critical position in implementing the IRD Programme. often, they have
got hired local persons. Clerical staff is recruited from within the vicinity of operation of
the RBBs from adjoining districts, whereas the officer team of workers is from the
concerned state.

troubles of nearby Rural Banks:

despite the important function performed by using RRBs in supplying credit score to the
weaker sections of society in rural regions, they're confronted with critical problems that
have led critics to impeach their very life. The Dantwala Committee (1978), the Kelkar
Committee (1986) and the Khusro Committee (1989) have pointed in the direction of
some of the weaknesses in the running of RRBs that are as follows:

1. Haphazard branch enlargement:

A big community of branches has been opened at a fast pace which has not contributed
to vast boom in enterprise. It has brought to overhead expenses with out contributing to
income. moreover, main variations persist amongst States inside the insurance of
districts/ branches via the RRBs. In a few States, backward regions still continue to be
uncovered by these banks.

in lots of districts, the RRBs do no longer have hyperlink branches on the Taluka/ Block
headquarters for assembly the coins necessities and to conquer different operational
issues. In some of the locations in which branches are important, it's miles tough to get
appropriate lodging for housing the branches.

2. faulty Recruitment policy:

Being rural oriented, the RRBs are anticipated to recruit staff domestically. With the
switch of recruitments in RRBs to the Banking carrier Recruitment forums, the
candidates outdoor the region of operations of RRBs are also made eligible for
recruitment into RRBs. this is against the concept of RRBs in which the local feel and
familiarity’ of the personnel is important for the a hit running of the RRBs.

3. inflexible Norms:

The norms laid down for the selection of beneficiaries in RRBs are rigid and primarily
based on an all India profits stage. The poverty line available in Haryana isn't always the
poverty line acquired in Andhra Pradesh. The village, its human beings, their
occupations and economic status vary broadly in Andhra Pradesh with that of All India
average. but to apply the equal norms to all of the States omit many folks who're in
need of credit score from the RRBs.

four. weak Capital Base:

The capital base of each RRB is susceptible. initially, the issued capital was Rs.50 lakh
which has been raised to Rs.75 lakh and Rs.1 crore in the case of decided on RRBs.
however the state Governments didn't make contributions their proportion. In view of its
full-size credit score obligation in rural regions, this restrict is at the lower side. The
working of many RRBs famous that they have got eroded their capital base on account
of non-stop losses.

five. Constraints in Deposit Mobilisation:

because the RRBs supply credit score only to the weaker sections of the agricultural
populace, they have been unable to mobilise sufficient deposits. The weaker sections
who're the main beneficiaries are negative and do not store so much as to deposit
within the RRBs. The middle instructions and the rural elite are not fascinated to deposit
their saving inside the RRBs. They deposit them in business banks from whom they get
credit score facilities.

6. Erosion of Profitability:

The RRBs have not been able to operate on a possible foundation. The important
elements which have contributed to the erosion of their profitability have been their
lending completely to the weaker sections, low interest margins and high working fee
worried in handling small loans. for the duration of 1999-2000 there were 33 loss
making RRBs which incurred a net loss of Rs.109 crores.

7. bad Recoveries:

The recover of loans due has been very poor. The estimate of the Khusro Committee
found out that as on June 1986, the recuperation of RRBs became forty nine in line with
cent. at some stage in 1999, the restoration level turned into beneath 30 consistent with
cent. the primary elements were willful defaults, misuse of loans, lack of comply with-up,
wrong identification of borrowers, extension of benami loans, body of workers
agitations, and many others.

eight. defective credit Deployment:

in many districts, the credit score deployment has not been proper., The loaning sports
are mainly restricted to crop loans and the schemes backed through the kingdom
Governments. The schematic approach toward lending is lacking in many instances.

activities allied to agriculture, cottage and rural industries, rural artisans/craftsmen and
different self-employed programmes have now not been given due importance in the
loaning sports of the RRBs.

nine. excessive mortgage Transaction value:

With parity in pay scales between the RRBs and commercial banks, the mortgage
transaction fees in RRBs are many times better than in rural branches of commercial
banks.

conclusion:

notwithstanding the constraints beneath which the RRBs are working, they constitute
one of the powerful contraptions for bringing about quicker rural development with social
justice.

pointers to enhance the working of RRBs:

to improve the operating of the RRBs, the Dantawala Committee (1978), the Kelkar
Committee (1986) and the Khusro Committee (1989) have made some of
recommendations. some of those are enumerated under:

1. to enhance the viability of RRBs, the Khusro Committee recommended that the RRBs
have to be merged with the industrial banks. The merger might solve the troubles of
accrued losses, of insolvency, and of the in-constructed non-viability of most of the
people of RRBs.

however it is incorrect to presume that when merger with sponsor banks, the RRBs will
be feasible because many branches of commercial banks are incurring huge losses.
consequently, the hints made by the Kelkar Committee must be implemented. they are
the bifurcation of unwieldy RRBs, and the amalgamation of small RRBs.

2. a good way to toughen the capital structure of RRBs, the Kelkar Committee
recommended the raising of issued capital of RRBs from Rs.25 lakhs to Rs.a hundred
lakhs and the permitted capital from Rs.1crores to Rs.five crore.

3. as the very purpose of establishing RRBs is to transfer budget from city cash market
to rural centres, the nation Governments need to allow the Panchayats and different
quasi-government bodies functioning in rural areas to maintain their funds with the RRB
branches functioning inside their area of operations.
four. The nation Governments should both re-organise agricultural credit societies or
establish new Farmers’ provider Societies via which RRBs can provide manufacturing
credit on a huge scale and thereby the value of servicing might be reduced
substantially.

five. The sponsor banks should play a more active function in advising and supporting
their RRBs in coping with their funds, in appraising loan schemes, in making right stop-
use of credit, and in supplying group of workers for internal audit of RRBs.

6. The sponsor banks have to charge a lower hobby rate at the refinance to RRBs and
contain themselves much less in RRBs brief-time period and non-schematic loans.

7. The sponsor banks ought to make investments the deposits of RRBs in lengthy-time
period authorities securities that are being kept in non-hobby incomes cutting-edge
debts.

eight. To growth the income margin, the RRBs have to expand credit score facilities to
non-goal organizations difficulty to a ceiling of 25 percentage in their general super
advances. The state government need to help the RRBs in recuperating dues by means
of developing a proper weather for healing and in taking movement in opposition to
willful defaulters.

nine. The RRBs should have their personal healing device with ok educated body of
workers and organise healing camps related to the authorities officials, local leaders
and department staff.

10. The enterprise of rural branches of commercial banks should be surpassed over to
RRBs.

eleven. There must be uniform scales of pay for all of the RRBs body of workers.

12. The RRBs need to devise suitable strategies to broaden banking conduct and
practices among the rural people by using imbibing banking schooling and
consciousness.
13. The RRBs must widen their sphere of hobby. rather than concentrating specially on
lending, they need to offer rural consultancy offerings, phased credit score programmes,
create higher avenues for employment, and take over the work of farmers’ provider
societies.

14. seeing that RRB is an area unique and target precise bank, its working hours need
to be certainly amended to permit the clients to make complete use of its centers. it's
miles inconsistent to have the same old office hours between 10 AM and five PM in a
village in which the customers are busy within the fields at that point., consequently, the
running hours of RRBs have to be fixed in step with the wishes of the area.

15. New RRBs need to be opened in areas where SC/ST population predominates.

sixteen. The complete recruitment method in the RRBs have to be streamlined. local
people ought to be favored and schooling need to be given at the problems of rural
lifestyles which can be bizarre to the RRBs.

LITERATURE REVIEW

This paper reviews the concept with unique attention to the function of felony establishments.
economic increase is usually measured via the growth in a country’s output of products and
offerings. economic growth is ideal due to the fact faster boom inside the outputs and services in
an financial system approach higher incomes for anybody and better incomes could in turn make
it feasible for more human beings to stay in a more fun and pleasurable existence.

during the last numerous decades, a remarkable quantity of students have devoted them-selves to
exploring the determinants of monetary growth and provided alternative theories on capability
resources of cross-country profits differences. severa variables, inclusive of capital
accumulation, technological development, productivity, coverage choice, political shape,
criminal device, and even geography are investigated on both theoretical stage and empirical
stage. amongst those factors, institutions which form incentives and decide the allocation of
resources, had been increasingly regularly occurring as being the essential determinant of
monetary boom (Acemogluet al., 2005). in addition, compared with casual institutions (norms,
for example) that can best operate efficiently underneath a certain range of conditions such as
repeated interaction, enough information, and small-scale institution, felony establishments
enforced by the country are identified to exert a greater important have an impact on on
monetary performance in modern-day economy (cross, 2002).

The interplay among law and economic effects has been significantly studied for the reason that
Sixties, inside the discipline of regulation and economics originating from Coase’s seminal
article on social price. Coase’s contribution became the seed for a flood of articles which have
prolonged the method of regulation and economics to almost every place of the felony machine.
but, earlier than the1990s, pupils of regulation and economics were concerned commonly about
how felony rules influence people’ incentives and corporations’ behaviour on a micro-level, in
preference to pertaining to one of a kind degrees of financial increase to the differences of legal
guidelines on a macro-stage. this situation has been dramatically changed for the reason that quit
of 1990s beneath the stimulation of a chain of move-united states of america econometric
researches performed through four economists, l. a. Porta, Lopez-de-Silanes, Shleifer and
Vishny (hereafter LLSV).1

A wave of studies on the relationship among regulation and financial growth, initiated by using
the works of LLSV, has substantially deepened our information of the sources of growth, as well
as contributed to shift the eye of scholars of regulation and economics to macro-economic effects
of legal gadget. however, the controversies spark off through LLSV’s proposition on the
superiority of common law over civil regulation, imply that there are a number of critical puzzles
which can be hard to explain via LLSV’s theory, and consequently name for more paintings on
comparative evaluation of different felony families before a consensus may be reached.

The rest of the paper is organized as follows. section 2 discusses the role of fundamental
variables, consisting of geography, exchange, way of life and establishments. section three
surveys the contributions of LLSV. In segment four, we overview the arguments and evidence
surrounding LLSV’s declare of superiority of not unusual law over civil law on financial
increase. sooner or later, we finish in section 5.

2. essential reasons of monetary boom: From Geography to establishments

The traditional idea of economic increase attributes economic boom to the buildup of component
inputs which include capital and labour, and also to variables which affect the productivity of
these inputs, which include technological alternate (Harrod, 1939; Domar, 1946; Solow, 1956).
In exploring what bills for the rise of the Western international, North and Thomas (1973, p. 2)
task the traditional wisdom through asking the question: “if all that is required for monetary
growth is investment and innovation, why have some societies missed this proper outcome?”
North and Thomas pass similarly and say that “The elements we've indexed (innovation,
economies of scale, capital accumulation, and many others.) aren't reasons; they may be
increase” (North and Thomas, 1973, p. 2, italics in unique). consequently, it is necessary to head
past these elements and delve into the broader fundamental determinants to recognize why a few
countries have performed a great deal better than others. A huge variety of candidate motives
were presented within the literature. these candidates can be categorized into four categories:
geography, trade, culture and institutions.

2.1 Geography

consistent with Acemoglu et al. (2005), there are as a minimum 3 variations of geography
hypothesis, every underlining a special mechanism for a way geography impacts prosperity. the
primary and earliest model of geography speculation is going lower back to Montesquieu, who
believed that weather, especially warmth, fashioned human attitudes and attempt which in turn
affected monetary consequences. the second model stresses the effect of geography on the
technologies to be had to a society, specially in agriculture. for example, Diamond (1997) argues
that essential aspect at the back of Europe’s conquest of the Americas become the geographical
gain of Eurasia (i.e. higher organic assets), from which would emerge a settled agriculture and as
a consequence a complex society with advanced civilization and technologies. The 1/3 model
links poverty in lots of regions of the arena, in particular tropical areas, to their sickness burden
(Bloom and Sachs, 1998).

however, Acemoglu (2009: pp. 118–119) makes it clear that the geography speculation isn't
always sufficient to be convincing. He argues that most of the technological differences
emphasized by these authors refer to agriculture, but the origin of differential monetary boom
across countries is going again to the age of industrialization. As to the disorder burden version,
he factors out that the truth that many undeveloped international locations have unhealthy
environments is, at the least in element, a outcome of their failure to expand economically.
2.2 exchange

some students argue that greater open economies grow quicker than extra closed economies. as
an instance, in one of the most heavily referred to studies on the relationship among openness
and growth, dollar (1992) constructs separate indices relating to ‘outward orientation’,
specifically ‘index of actual exchange price distortion’ and ‘index of real trade charge
variability’ and demonstrates that those indices have been each negatively correlated with growth
over the 1976–1985 duration in a pattern of 95 growing international locations. In every other
influential paper, Sachs and Warner (1995) classify international locations into two classes –
closed economic system and open financial system, and find a robust correlation between
openness and economic increase.

Rodriguez and Rodrik (2000) question this proposition by way of surveying a few recent
empirical research amongst which the aforementioned articles are paid unique interest to. They
criticize that in many cases, the indicators of ‘openness’ utilized by researchers are elaborate as
measures of change boundaries or are extraordinarily correlated with different assets of bad
monetary performance. in addition, the empirical strategies used to ascertain the hyperlink
between trade policy and increase have serious shortcomings. In an in advance survey paper,
Edwards (1993) expresses similar dissatisfaction.

2.3 WAY OF LIFE

a few pupils emphasize the cultural variations among nations and argue that a country’s cultural
attributes are the key determinant of its economic system. The maximum famous link among
lifestyle and financial boom is that proposed by means of Max Weber (1930), who harassed that
the origins of industrialization in Western Europe could be traced to the Protestant reformation
and in particular the upward thrust of Calvinism. recently, Lan-des upholds Weber’s standpoint
and states similarly that “If we examine anything from the history of economic improvement, it's
miles that tradition makes all the distinction” (Landes, 1998, p. 516). in addition to faith, agree
with and social capital are also seemed as essential determinants of economic performance and
social governance (Fukuyama, 1995; Putnam, 1993). in the end, the proponents of this view
support their case with numerous empirical studies and finish that, common, cultures are
economically critical for essential financial problems (Guiso et al., 2006).
The culture view is criticized for numerous motives. First, as Acemoglu (2009,

pp. 122–123) points out, it's miles very hard to measure lifestyle whilst there was a few
manner in measuring certain cultural traits with self-said beliefs and attitudes in social surveys.
Secondly, there are such a lot of counterexamples. If cultural values are responsible for
successful boom experience of South Korea, why do these equal values not spur financial
increase in North Korea? If cultural values are vital for China’s boom nowadays, why did they
not result in a better economic performance below Chairman Mao’s manipulate? Thirdly, the
subculture view commonly treats tradition as if it became an immutable and exogenous factor. In
reality, lifestyle may represent a response to external conditions and alternate as those situations
trade. as a result, a society’s way of life can be an endogenous made from societal institutions in
place of an exogenous constraint that controls the impact of establishments (pass, 2002).

2.4 INSTITUTIONS

Researchers have increasingly more used history and concept to make the case that institutions
are essential to economic increase. This method is closely related to the brand new institutional
economics, in particular Douglass North, who won a Nobel Prize for his efforts and insights in
reading the position of establishments. in step with North and Thomas (1973, p. 2) and North
(1981, p. 6), boom will really no longer arise unless people are lured via incentives to undertake
social productive activities together with investment, innovation, and specialization. ‘properly’
institutions, for instance, properly targeted and enforced property rights, can for that reason
motive boom through ‘getting the incentives right’. this is, bringing the private returns and social
returns toward each different. consequently, establishments play a fundamental role in societies:
‘they may be the underlying determinant of the lengthy-run overall performance of economies’
(North, 1990, p. 107).

North’s exploration of human history arrives at a end that establishments are at the very heart of
monetary history: the distinction between belongings rights in searching and agriculture is
important to an explanation of the primary economic Revolution (or the

.
Neolithic Revolution), while an vital step inside the development of the second economic
Revolution (industrial Revolution) is the evolution of property rights, in particular patent
regulation and different complementary laws aimed toward defensive highbrow assets rights; as
compared with France and Spain, the prosperity of representative meeting and establishment of
personal property rights helped England to end up the monetary chief of Europe (North, 1981). A
paramount element contributing to England’s achievement become the wonderful Revolution of
1688, which gave rise to some fundamental constitutional modifications that allowed the
government to commit credibly to upholding assets rights (North and Weingast, 1989). In a
following studies, Delong and Shleifer (1993) affirm North’s judgment through showing that
absolutist governments are related to low monetary boom, as measured by city growth, in the
course of 800 years previous to the commercial Revolution.

The relationship among establishments and monetary growth is supported through many cross-us
of a regression research. For instance, in an influential paper, knack and keefer (1995) first offer
institutional signs compiled by using non-public global investment risk offerings – worldwide us
of a risk manual (icrg) and enterprise environmental danger intelligence (beri). The usage of
those signs, they run regressions on records from 1974 to 1989 and find good sized correlation
between institutions and financial growth. Further, corridor and jones (1999) provide a time
period of social infrastructure which means the establishments and government rules that offer
the incentives for individuals and companies in an economy. Throughout 127 nations their
research gives statistical proof indicating that differences in social infrastructure account for a
good deal of the distinction in long-run monetary performance throughout the sector, as
measured via output consistent with employee. In sum, the empirical proof is strongly in favour
of a fine and important impact from establishments to growth.

3. LAW TOPICS: CONTRIBUTIONS OF LLSV

3.1 COMMONPLACE LAW AS OPPOSED TO CIVIL LAW2

LLSV’s staring point is the popularity that legal guidelines in extraordinary nations are
transplanted from a few criminal traditions that emerged in Europe over previous centuries
through conquest, colonization and imitation. Predominant felony traditions are diagnosed,
specifically common law that's English in starting place, and civil regulation which drives from
Roman regulation and can be in addition labeled into French, German and Scandinavian. Every
other unique class is socialist legal family,three which originated within the Soviet Union, and
become unfold by using the Soviet armies to the previous Soviet republics and japanese Europe.
But, after the disintegrate of communist regimes in 1989 and 1990, the countries of the previous
Soviet Union and eastern Europe reverted to civil law systems. Determine 1 indicates the
distribution of criminal origins of business laws all through the arena.

Following Napoleon’s conquest of Italy, Poland the Low countries, and the Habsburg Empire,
his Code become added into those regions. In the colonial technology, France extended her
criminal affect to the near East and northern and Sub-Saharan Africa, Indochina, Oceania and
French Caribbean Islands. In addition, the French Code heavily motivated the Portuguese and
Spanish criminal structures, which helped unfold the French felony way of life to significant and
South the us. Common regulation has unfold completely to the British colonies, and bureaucracy
the premise of law in such international locations as Australia, Canada, america, India, South
Africa, and so forth. The German felony tradition prompted Austria, the previous
Czechoslovakia, Greece, Hungary, Switzerland, Yugoslavia, Japan, Korea, China (such as
Taiwan) and some countries of the former Soviet Union. The Scandinavian felony device was
now not spread to any country out of doors Northern Europe.

Because there are pretty few countries in German and Scandinavian households, the comparison
among common law and civil law is usually narrowed right down to commonplace law and
French civil law nations. The variations among those two felony systems are attributed to three
traditionally shaped elements. First, judges in commonplace law jurisdictions revel in
tremendous independence from different branches of presidency and are empowered to study the
constitutionality of law and administrative acts, whereas in French civil law countries, as a
legacy of Napoleon, judges are designed to be bureaucrats hired by way of and subordinate to the
country. Secondly, commonplace law is predicated heavily on judicial resolution of personal
disputes rather than law as a technique to social troubles. In Damaska’sˇ (1986) phrases, civil
law is ‘policy implementing’ whereas commonplace law is ‘dispute resolving’. Sooner or later,
in comparison with civil law nations, the extra admire for jurisprudence as a source of law within
the not unusual international locations suggests that judges have broader interpretation powers
and courts are greater able to mildew and create law as occasions trade. In summary, to LLSV,
‘common law stands for the strategy of social control that seeks to help non-public marketplace
results, whereas civil regulation seeks to replace such results with nation-favored allocations’ (la
Porta et al., 2008).
3.2 WORKS OF LLSV

LLSV’s technique in their empirical research is first to construct indices to measure the first-rate
of unique felony regulations in special countries, which include the level of investor safety in
corporate regulation and securities law, after which to show that these legal policies vary
systematically among prison origins by using running a check of manner (or medians). Finally,
they use go-u . S . A . Ordinary least squares (OLS) regression to estimate the consequences of
these criminal regulations on monetary effects, mainly monetary development. Prison origin
dummy variables that become aware of the prison origin of the unique prison rules of every
united states are regularly covered within the regression as explanatory variables.

As Black (2001) argues, a sturdy securities market rests on a complicated community of prison
and market establishments, of which securities regulation regarding data disclosure and insider
liability merits special attention in view of its role in deterring fraud, self-dealing and different
opportunistic behaviours. L. A. Porta et al. (2006) look at the effect of securities law on stock
market improvement in 49 nations, with a focal point on mandatory disclosure, legal
responsibility standards and public enforcement. The regression consequences display that both
disclosure necessities and legal responsibility standards are undoubtedly correlated with large
stock markets; then again, public enforcement plays a modest position at high-quality in the
improvement of inventory markets. Moreover, they display that not unusual and civil law
international locations differ extensively in disclosure and legal responsibility standards, in step
with which the superiority of common law is showed once more.

L. A. Porta et al. (2006) discover that, compared with disclosure and legal responsibility
standards, the ADRI is much less critical in explaining the distinction in economic improvement.
This leads Djankov et al. (2008) to construct a brand new degree of prison protection of minority
shareholders in opposition to expropriation by corporate insiders: the anti-self-dealing index.6
They show that the anti-self-dealing index is sharply better in not unusual regulation countries
than in civil law international locations, and anti-self-dealing index is related to a variety of
measures of inventory marketplace development. Sooner or later, interesting horse races among
the anti-self-dealing index, ADRI, and the 2 variable used in la Porta et al. (2006) – disclosure
and liability requirements are carried out to reveal that the anti-self-dealing index is a more
robust predictor of
.
The development of stock markets than the ADRI, but a less robust predictor than
disclosure and liability standards.

A disconcerting conclusion of LLSV (1997) is that their measure of creditor rights isn't so
effective in explaining the distinctive level of indebtedness among criminal origins. Djankov et
al. (2007) thereupon perform a observe which expands the available facts set to cowl 129 nations
and 25 years of statistics, yet continues to be primarily based at the method of measuring the
felony rights of lenders utilized in LLSV (1997). They also collect information on the public and
private registries in different nations during the identical duration, who acquire statistics on
credit histories and contemporary indebtedness of numerous borrowers and share it with lenders.
They discover that commonplace regulation countries have higher creditor rights cores than
French civil law countries; the latter, in contrast, have a much higher prevalence of public credit
score registries than do the former; in the end, both better creditor rights and the presence of
credit score registries are associated with a higher ratio of personal credit to GDP.

The second strand in their research is on the outcomes of presidency regulation and possession.
In an evaluation of the regulation of marketplace access in eighty five international locations,
Djankov et al. (2002) locate that stricter regulation of entry is related to higher ranges of
corruption and a more relative length of the unofficial economy, instead of higher best of public
or private goods. Moreover, countries with more constrained and representative authorities and
international locations of English prison origin (and Scandinavian starting place) have less
policies. Another observe carried out by way of Botero et al. (2004) supports the belief of
Djankov et al. (2002) by using arguing that legal traditions are a strikingly critical determinant of
the version within the regulation of labour markets, with common law international locations
being less protective of workers and less generous in social safety expenditure than civil
regulation international locations. A long way from enhancing efficiency, heavier law of labour
has damaging results for labour force participation and unemployment. Further, government
ownership of banks, in keeping with la Porta et al. (2002), is especially not unusual in civil law
nations. Higher authorities ownership of banks is in flip associated with slower economic
improvement, decrease boom of in step with capita earnings and decrease productivity boom. In
preferred, relative to not unusual regulation nations, French legal origin countries are greater
interventionist and for this reason have inferior normal authorities performance (LLSV, 1999).
The third component of their studies issues the effect of criminal origins at the characteristics of
judiciary, after which the impact of those on the security of assets rights and contract
enforcement. For example, la Porta et al. (2004) construct empirical measures of judicial
independence and constitutional evaluate and have a look at their effect on financial freedom and
political freedom throughout international locations. They discover that, judicial independence
seems to be in particular important for financial freedom, while constitutional evaluate is
specially important for political freedom. Again, compared with French prison beginning
nations, not unusual regulation nations have higher levels of monetary freedom,7 although the
variations in political freedom between them are insignificant. Djankov et al. (2003) construct an
index of procedural formalism of dispute resolution to take a look at the effectiveness of courts
in easy disputes inclusive of evicting a tenant for non-price and collecting a Bounced test. They
discover that such formalism is systematically greater in civil than in common law nations, and is
related to better predicted duration of judicial lawsuits, much less consistency, less honesty, less
equity in judicial decisions and greater corruption.

Ultimately, they are attempting to use the historic narrative to offer a theoretical basis for the
superiority of not unusual law. Glaeser and Shleifer (2002) trace the differences between not
unusual regulation and civil regulation lower back to the 12th and thirteenth centuries and gift a
theoretical model to capture the origin of the variations. They argue that a primary requirement
inside the design of a legal system is the protection of regulation enforcers from coercion by way
of litigants thru either violence or bribes; the higher the hazard of coercion, the extra the want for
protection and manipulate of law enforcers by means of the country. Inside the 12th and 13th
centuries, England was a notably non violent us of a with vulnerable local feudal lords who were
now not able to subverting nearby justice, after which a decentralized felony gadget based on
independent juries became materialized. However, France became a less non violent country,
wherein neighborhood magnates had been so effective that there was no opportunity of effective
nearby justice while those magnates’ hobbies were concerned. Therefore, a miles more
centralized machine, organized, maintained and protected through the sovereign was efficient.
Over the following years, the situations in England and France reinforced the preliminary
divergence inside the felony system.
In precis, los angeles Porta et al. (2008) generalize their findings into four propositions: ‘First,
prison policies and rules range systematically throughout international locations, and those
differences may be measured and quantified; 2d, these variations in prison policies and rules are
accounted for to a big volume by using criminal origins; 1/3, the primary ancient divergence in
the styles of criminal traditions (the coverage-enforcing recognition of civil regulation as
opposed to the marketplace-helping focus of commonplace regulation) explains properly why
criminal policies vary; fourth, the measured variations in felony regulations be counted for
monetary and social results’. Therefore, ‘criminal origins are critical to know-how the styles of
capitalism’.
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 bank 20. At present there
are total 26 Public Sector Banks in India (As on 26-09-2009). Of these 19 are nationalised
banks, 6(STATE BANK OF INDORE ALSO MERGED RECENTLY) belong to SBI &
associates group and 1 bank (IDBI Bank) is classified as other public sector bank.
Welfare is their primary objective.

· Bank Of India SBI & its Associates

 Bank Of Maharastra IDBI
 Canara Bank (Industrial · State Bank of India
 Central Bank Of India Development
 Corporation Bank Bank Of
· State Bank of Hyderabad
 Dena Bank India)Ltd.
· Indian Bank
· State Bank of Mysore
· Indian Overseas Bank
· Oriental Bank
· State Bank of Patiala
Of Commerce
· Punjab & Sind Bank
· State Bank of Travancore
· Punjab National Bank
· Syndicate Bank · State Bank of Bikaner And
· UCO Bank Jaipur
· Union Bank Of India
· United Bank Of India
· Vijaya Bank
(State Bank of Saurastra merged with SBI in the
year 2008 and State Bank of Indore In 2010)
 Private Sector Banks
Those banks are owned and run by means of the non-public zone. Diverse banks inside the u . S .
Which include ICICI financial institution, HDFC financial institution etc. An person has manage
over there banks in instruction to the percentage of the banks held by him.

Personal banking in India become practiced given that the beginning of banking gadget in India.
The primary personal financial institution in India to be set up in personal region Banks in India
became indusind bank. It is one of the fastest developing bank non-public zone Banks in India.
IDBI ranks the tenth largest development financial institution within the international as non-
public Banks in India and has promoted international class institutions in India.

The first non-public financial institution in India to acquire an in principle approval from the
Reserve financial institution of India changed into Housing development Finance organisation
constrained, to set up a bank inside the private area banks in India as a part of the RBI's
liberalization of the Indian Banking industry. It turned into integrated in August 1994 as HDFC
financial institution restricted with registered office in Mumbai and began operations as
Scheduled commercial financial institution in January 1995. ING Vysya, yet some other private
bank of India changed into integrated within the 12 months 1930

Non-public area banks were 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
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.
and
Cooperative banks in India

The Cooperative financial institution is an crucial constituent of the Indian economic machine,
judging by the role assigned to co operative, the expectations the co operative is supposed to
fulfil, their wide variety, and the wide variety of offices the cooperative bank function. although
the co operative motion originated inside the West, however the importance of such banks have
assumed in India is not often paralleled everywhere else inside the world. The cooperative banks
in India plays an essential position even nowadays in rural financing. The businessess of
cooperative financial institution in the urban regions also has improved phenomenally in current
years because of the pointy growth in the range of number one co-operative banks.
Co operative Banks in India are registered beneath the Co-operative Societies Act. The
cooperative bank is also regulated through the RBI. they're governed by means of the Banking
rules Act 1949 and Banking laws (Co-operative Societies) Act, 1965.

Rural banks in India

Rural banking in India began since the established order of banking sector in India. Rural Banks
in those days mainly focussed upon the agro zone. regional rural banks in India penetrated every
nook of the u . s . and prolonged a helping hand in the growth procedure of the united states of
america.

SBI has 30 regional Rural Banks in India referred to as RRBs. the agricultural banks of SBI is
spread in thirteen states extending from Kashmir to Karnataka and Himachal Pradesh to North
East. the overall range of SBIs nearby Rural Banks in India branches is 2349 (sixteen%). till date
in rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are
positioned in faraway rural regions.
Aside from SBI, there are other few banks which features for the improvement of the agricultural
areas in India. Few of them are as follows.

Haryana kingdom Cooperative Apex financial institution limited

The Haryana nation Cooperative Apex bank Ltd. usually known as as HARCOBANK performs a
critical role in rural banking within the economy of Haryana kingdom and has been supplying
aids and financing farmers, rural artisans, agricultural labourers, marketers, etc. within the
country and giving service to its depositors.

 
NABARD

National bank for Agriculture and Rural improvement (NABARD) is a improvement

Financial institution inside the sector of local Rural Banks in India. It gives and regulates credit
and offers provider for the promoting and development of rural sectors specially agriculture,
small scale industries, cottage and village industries, handicrafts. It also finance rural crafts and
different allied rural monetary sports to sell included rural improvement. It helps in securing
rural prosperity and its related subjects.

Sindhanur city Souharda Co-operative financial institution

Sindhanur city Souharda Co-operative financial institution, popularly called SUCO financial
institution is the primary of its kind in rural banks of India. The remarkable story of its inception
is interesting
and galvanizing for all of the adolescents of this country.

United bank of India

United bank of India (UBI) additionally performs an critical role in regional rural banks. It has
multiplied its department network in a large way to actively take part inside the developmental of
the agricultural and semi-urban areas in conformity with the targets of nationalisation.
Syndicate bank

Syndicate financial institution became firmly rooted in rural India as rural banking and feature a
clean vision of future India by using know-how the grassroot realities. Its progress has been
abreast of the segment of innovative banking in India mainly in rural banks.

INDIAN BANKING ENTERPRISE

The Indian banking marketplace is growing at an astounding rate, with assets predicted to reach
US$1 trillion by 2010. An expanding financial system, middleclass, and technological
innovations are all contributing to this boom.
The country’s middle class accounts for over 320 million humans. In correlation with the
increase of the economy, rising income levels, extended popular of residing, and affordability of
banking merchandise are promising elements for endured expansion.

The Indian banking industry is within the center of an IT revolution, Focusing on the growth of
retail and rural banking. gamers have become more and more consumer -centric in their method,
which has led to innovative techniques of supplying new banking products and services. Banks
are now realizing the significance of being a large playerand are starting to consciousness their
attention on mergers and acquisitions to take advantage of economies of scale and/or observe
Basel II law.“Indian banking industry property are anticipated to reach US$1 trillion via 2010
and are poised to get hold of a greater infusion of overseas capital,” says Prathima Rajan, analyst
in Celent's banking organization and writer of the document. “The banking industry should
recognition on having a small wide variety of massive gamers that could compete globally as
opposed to having a big number of fragmented players.
 INTRODUCTION TO ICICI BANK

 RECORDS OF ICICI

 1955: the commercial credit and investment employer of India limited (ICICI) changed
into included on the initiative of global financial institution, the authorities of India and
representatives of Indian industry, with the goal of making a development monetary organization
for supplying medium-time period and lengthy-time period task financing to Indian businesses.
Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI limited. ICICI emerges as the
main supply of foreign currency loans to Indian enterprise. except investment from the world
bank and different multi-lateral groups, ICICI turned into additionally the various first Indian
companies to elevate finances from global markets.
 1956 : ICICI declared its first dividend of 3.5%.
 1958 : Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.
 1960 : ICICI constructing at 163, Backbay Reclamation, inaugurated.
 1961 : the first West German loan of DM five million from Kredianstalt received.
 1967 : ICICI made its first debenture problem for Rs.6 crore, which was oversubscribed.
 1969 : the first two regional offices in Calcutta and Madras set up.

 1972 : the second one entity in India to installation merchant banking

services. : Mr. H. T. Parekh appointed the third Chairman of ICICI.
 1977 : ICICI backed the formation of Housing development Finance enterprise.
controlled its first fairness public problem.
 1978 : Mr. James Raj appointed the fourth Chairman of ICICI.
 1979 : Mr.Siddharth Mehta appointed the 5th Chairman of ICICI.
 1982 : 1982 : ICICI have become the first ever Indian borrower to elevate
European currency units. : ICICI commences leasing business.
 1984 : Mr. S. Nadkarni appointed the 6th Chairman of ICICI.
 1985 : Mr. N.Vaghul appointed the 7th Chairman and coping with Director of ICICI.
 1986 : ICICI became the primary Indian institution to obtain ADB
Loans. : ICICI, in conjunction with UTI, installation credit score score records

.
.

services of India restricted, India's first expert credit rating organisation. : ICICI promotes
delivery credit and funding business enterprise of India restrained. : The employer made a public
issue of Swiss Franc 75 million in Switzerland, the primary public problem by means of any
Indian entity inside the Swiss Capital marketplace.

 1987 : ICICI signed a mortgage settlement for Sterling Pound 10 million with
Commonwealth improvement corporation (CDC), the primary mortgage with the aid of CDC for
financing projects in India.

 1988 : Promoted TDICI - India's first undertaking capital enterprise.

 1993 : ICICI Securities and Finance organisation confined in joint

task with J. P. Morgan installation. : ICICI Asset control business enterprise installation.
 1994: ICICI installed Banking enterprise as a banking subsidiary.previously business
credit and investment corporation of India. Later, ICICI Banking company become renamed as
'ICICI financial institution confined'. ICICI founded a separate legal entity, ICICI financial
institution, to adopt everyday banking operations - taking deposits, credit score playing cards,
vehicle loans etc.
 1996 : ICICI Ltd became the first agency in the Indian economic
zone to raise GDR. : SCICI merged with ICICI Ltd. : Mr. ok.V.Kamath appointed the dealing
with Director and CEO of ICICI Ltd

 1997 : ICICI Ltd was the first intermediary to transport faraway from single top rate to 3-
tier high prices shape and added yield-curve primarily based pricing. : The call the economic
credit score and funding corporation of India Ltd modified to ICICI Ltd. : ICICI Ltd introduced
the takeover of ITC traditional Finance.
 1998 : delivered the brand new logo symbolizing a common corporate
identity for the ICICI group. : ICICI introduced takeover of Anagram Finance.
 1999 : ICICI released retail finance - vehicle loans, house loans and
loans for patron durables. : ICICI will become the first Indian employer to list at the NYSE via
an problem of yank Depositary shares.
 2000 : ICICI bank became the first commercial financial institution from India to listing
its stock on NYSE.
 2001: ICICI acquired financial institution of Madura (est. 1943). financial institution of
Madura become a Chettiar bank, and had obtained Chettinad Mercantile bank (est. 1933) and
Illanji financial institution (mounted 1904) within the Sixties. In October 2001, the boards of
directors of ICICI and ICICI financial institution permitted the merger of ICICI and of its
thoroughly owned retail finance subsidiaries, ICICI non-public monetary services constrained
and ICICI Capital offerings limited, with ICICI financial institution.

 2002 : The merger become authorised by means of shareholders of ICICI and ICICI
financial institution in January 2002, by means of the excessive court of Gujarat at Ahmadabad
in March 2002, and by means of the excessive 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, were included in a single entity. at the identical time,
ICICI began its worldwide enlargement through commencing consultant workplaces in big apple
and London. In India, ICICI bank offered the Shimla and Darjeeling branches that widespread
Chartered bank had inherited when it obtained Grindlays financial institution.

 2003 : the first integrated currency management Centre launched in Pune. ; ICICI
financial institution introduced the putting in place of its first ever offshore branch in
Singapore. ; the first offshore banking unit (OBU) at Seepz special monetary area, Mumbai,
released. ; ICICI bank’s representative workplace inaugurated in Dubai. ; representative
workplace installation in China. : ICICI financial institution’s uk subsidiary launched. ; India’s
first ever "Visa Mini credit Card", a 43% smaller credit card in dimensions released. ; ICICI
financial institution subsidiary set up in Canada. ; Temasek Holdings acquired 5.2% stake in
ICICI financial institution. ; ICICI financial institution became the market chief in retail credit
score in India. within the united kingdom it established an alliance with Lloyds TSB. It
additionally opened an Offshore Banking Unit (OBU) in Singapore and representative offices in
Dubai and Shanghai.

 2004 : Max cash, a home loan product that offers the twin advantage of higher eligibility
and affordability to a patron, delivered. : mobile banking provider in India launched in affiliation
with Reliance Infocomm. : India’s first multi-branded credit score card with HPCL and Airtel
released. : Kisan mortgage Card and progressive, low-fee ATMs in rural India launched. : ICICI
bank and CNBC television 18 introduced India’s first ever awards recognizing the achievements
of SMEs, a pioneering initiative to inspire the contribution of Small and Medium businesses to
the growth of Indian economy. : ICICI bank opened its 500th branch in India. : ICICI financial
institution added partnership model in which ICICI bank might forge an alliance with present
micro finance establishments (MFIs). The MFI might adopt the promotional role of figuring out,
schooling and selling the micro- finance customers and ICICI financial institution might finance
the clients directly on the advice of the MFI. : ICICI financial institution introduced 8-8 Banking
wherein all the branches of the financial institution would remain open from 8a.m. to 8 p.m. from
Monday to Saturday. : ICICI bank added the idea of floating charge for home loans in India. on
the identical time, ICICI opened a representative workplace in Bangladesh to faucet the massive
trade among that U . S ., India and South Africa.

 2005 : First rural department and ATM launched in Uttar Pradesh at Delpandarwa,
Hardoi. ; "unfastened for existence" credit playing cards launched wherein annual prices of all
ICICI financial institution credit cards had been waived off. ; ICICI bank and Visa collectively
launched mChq – a revolutionary credit card on the cellular smartphone. ; non-public Banking
Masters 2005, a nationwide golfing tournament for high networth customers of the non-public
banking division released. This occasion is the largest home invitation newbie golfing occasion
performed in India. ; First Indian employer to make a simultaneous equity presenting of $1.eight
billion in India, america and Japan. ; ICICI acquired Investitsionno-Kreditny financial institution
(IKB), a Russia bank with approximately US$4mn in belongings, head office in Balabanovo
inside the Kaluga area, and with a department in Moscow. ICICI renamed the financial
institution ICICI financial institution Eurasia. also, ICICI installed a department in Dubai
international monetary Centre and in Hong Kong.ICICI bank became the largest financial
institution in India in phrases of its marketplace capitalization. ; ICICI bank became the primary
non-public entity in India to offer a discount to retail buyers for its follow-up provide.

 2006 : ICICI bank have become the primary Indian financial institution to issue hybrid

Tier-1 perpetual debt within the worldwide markets. : ICICI financial institution subsidiary
installation in Russia. ; introduced a brand new product - ‘NRI clever shop Deposits’ – a unique
fixed deposit scheme for nonresident Indians. : representative offices opened in Thailand,
Indonesia and Malaysia. ; ICICI bank uk opened a branch in Antwerp, in Belgium ; ICICI bank
became the biggest retail player inside the marketplace to introduce a biometric enabled clever
card that permit banking transactions to be carried out on the sector. A low-value answer, this
became an powerful transport option for ICICI financial institution’s micro finance group
companions. ; monetary counseling centre Disha released. Disha gives free credit score
counseling, monetary planning and debt control offerings. ; Bhoomi puja conducted for a nearby
hub in Hyderabad, Andhra Pradesh.

 2007 : ICICI bank‘s USD 2 billion three-tranche international bond offering turned into
the most important bond presenting through an Indian bank. ; ICICI amalgamated Sangli
financial institution, which turned into centered in Sangli, in Maharashtra state, and which had
158 branches in Maharashtra and any other 31 in Karnataka nation. Sangli bank were founded in
1916 and changed into especially sturdy in rural areas. With admire to the worldwide sphere,
ICICI additionally acquired permission from the authorities of Qatar to open a branch in Doha.
additionally, ICICI financial institution Eurasia opened a second branch, this time in St.
Petersburg. ; ICICI financial institution raised Rs 20,000 crore (approx $five billion) from both
home and international markets through a comply with-on public provide. ; ICICI bank’s GBP
350 million international bond offering marked the inaugural deal inside the sterling market from
an Indian provider and also the most important deal inside the sterling marketplace from Asia. ;
released India’s first ever jewellery card in affiliation with earrings major Gitanjali
organization. ; ICICI bank became the first financial institution in India to release a top rate
credit card -- The Visa Signature credit score Card. ; foundation stone laid for a nearby hub in
Gandhinagar, Gujarat. ; introduced SME Toolkit, a web resource centre, to help small and
medium organisations start, finance and grow their enterprise. ; ICICI financial institution signed
a multi-tranche twin foreign money US$ 1.5 billion syndication mortgage settlement in
Singapore. ; ICICI financial institution have become the primary private bank in India to provide
each floating and glued price on car loans, business motors loans, creation gadget loans and
expert system loans. ; In a primary of its kind, country extensive initiative to draw shiny graduate
students to pursue a profession in banking, ICICI financial institution released the "Probationary
Officer Programme". ;launched financial institution@home offerings for all savings and modern
a/c clients living in India ; ICICI financial institution Eurasia LLC inaugurated its first branch at
St Petersburg, Russia.

 2008 : ICICI financial institution enters US the usa Federal Reserve authorised ICICI to
convert its consultant workplace in big apple right into a department.; ICICI financial institution
enters Germany, opens its first branch in Frankfurt ; ICICI financial institution released iMobile,
a step forward innovation in banking wherein practically all internet banking transactions can
now be certainly achieved on mobile phones. ; ICICI bank concluded India's largest ever
securitization transaction of a pool of retail loan belongings aggregating to Rs. 48.ninety six
billion (equivalent of USD 1.21 billion) in a multi-tranche difficulty backed through four one-of-
a-kind asset categories. it is also the biggest deal in Asia (ex-Japan) in 2008 till date and the
second one biggest deal in Asia (ex-Japan & Australia) considering the fact that the beginning of
2007. ; ICICI bank launches ICICIACTIVE - Banking Interactive provider - at the side of
DISHTV, to be able to allow visitors to peer information about the financial institution's products
and services and phone information on their DISHTV screens. ; ICICI financial institution and
British airways launch co-branded credit card, which is designed to earn multiplied reward
factors to the card holders with each British airways flight or with the aid of spending on
everyday purchases.

 2009: ICICI financial institution Board appoints Mr ok. V. Kamath as non-executive

Chairman and Ms Chanda Kochhar as coping with Director & CEO effective may also 1, 2009,
even as the prevailing non-government Chairman Mr N Vaghul retires after finishing his time
period on April 30, 2009 ; ICICI financial institution ties up with BSNL cellular One for invoice
bills, it will facilitate invoice charge for BSNL cell One users through www.icicibank.com across
all of the 27 circles of BSNL. ; ICICI bank confined appearing thru its Hong Kong branch (ICICI
bank) signed an agreement on Export credit score Line totaling up to US$a hundred million with
the Japan bank for global Cooperation (JBIC) which constitutes the global wing of Japan Finance
enterprise. ; ICICI bank limited appearing via its Hong Kong branch (ICICI bank) signed a loan
agreement with the Export-Import financial institution of China (China Exim) for USD ninety
eight million under the two- step consumer credit (Export credit score) arrangement. ICICI bank
is the primary Indian bank to have entered into this arrangement with China Exim ; ICICI
financial institution with Singapore airlines released “ICICI financial institution Singapore
airways Visa Platinum credit score Card”, the cardboard has extraordinary privileges specially
designed for the participants. ; ICICI bank introduced an affiliation with mChek, India’s leading
cellular price answers provider, to facilitate mChek services to all ICICI bank Debit and credit
Card customers. those are electronic playing cards issued to the customers with mChek
application on their cellular phone. ; Ms Chanda Kochhar took rate because the handling
Director & CEO of ICICI bank from may also 1, 2009.

ICICI financial institution these days

ICICI financial institution (BSE: ICICI) (formerly industrial credit and investment enterprise of
India) is India's biggest non-public zone bank by way of market capitalisation and 2d biggest
usual in phrases of property. Trotal belongings of Rs. 3,562.28 billion (US$ seventy seven
billion) at December 31, 2009 and earnings after tax Rs. 30.19 billion (US$ 648.8 million) for
the 9 months ended December 31, 2009. The bank additionally has a community of one,640+
branches (as on February eleven, 2010) and about 4,721 ATMs in India and presence in 18
international locations, in addition to some 24 million customers (at the give up of July 2007).
ICICI financial institution gives a extensive variety of banking merchandise and financial
services to corporate and retail clients via a diffusion of transport channels and specialized
subsidiaries and associates within the regions of investment banking, existence and non-life
coverage, assignment capital and asset management. (those information are dynamic.) ICICI
financial institution is also the largest company of credit cards in India. ICICI financial
institution has were given its equity shares listed at the stock exchanges at Kolkata and
Vadodara, Mumbai and the countrywide inventory trade of India constrained, and its ADRs on
the big apple stock exchange (NYSE). The financial institution is expanding in remote places
markets and has the most important worldwide stability sheet among Indian banks. ICICI bank
now has utterly-owned subsidiaries, branches and representatives offices in 18 international
locations, including an offshore unit in Mumbai. This consists of fully owned subsidiaries in
Canada, Russia and the United Kingdom (the subsidiary via which the HiSAVE financial savings
logo is operated), offshore banking devices in Bahrain and Singapore, an advisory branch in
Dubai, branches in Belgium, Hong Kong and Sri Lanka, and consultant places of work in
Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and
america. distant places, the financial institution is targeting the NRI (Non-Resident Indian)
population specially.

ICICI said a net earnings of Rs. three,758 crore (US$ 741 million) for FY2009. The bank's
contemporary and financial savings account (CASA) ratio extended to 28.7% at March 31, 2009
from 26.1% at March 31, 2008. increase of Rs. 5,286 crore in CASA deposits in area ended
March 31,2009.

ICICI bank is one of the massive four Banks of India with state financial institution of India,
Axis financial institution and HDFC bank

BUSINESS PROFILE
merchandise & offerings

non-public Banking

• Deposits
• Loans

• playing cards
• Investments

• coverage
• Demat offerings

• Wealth control
NRI Banking

• money switch

• bank debts
• Investments

• belongings solutions
• coverage

• Loans

COMMERCIAL ENTERPRISE BANKING

• company internet Banking

• cash control
• change offerings
• FXOnline
• SME services
• online Taxes
• Custodial services

HEAD OFFICE

ICICI bank
ninth ground, South Towers
ICICI Towers
Bandra Kurla complex
Bandra (E)
Mumbai.
telephone: 91-022-653 7914
internet site: www.icicibank.com
 Capital structure

The authorized Capital of ICICI bank is 214.75 Crores. The Issued, Subscribed and Paid
Up Capital is divided into 1113250642 fairness stocks @ Rs.10/- every.

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.
 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
Mr. Sridar Iyengar, Chairman
Mr. M. K. Sharma, Alternate Chairman
Mr. Narendra Murkumbi
Mr. V. Sridar
Corporate Social Responsibility
Committee
Mr. M. K. Sharma, Chairman
Dr. Anup K. Pujari
Ms. Chanda D. Kochhar
Credit Committee
Mr. K. V. Kamath, Chairman
Mr. Narendra Murkumbi
Mr. M. S. Ramachandran Mr. M .K.
Sharma
Ms. Chanda D. Kochhar
Risk 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
Committee of Executive Directors
Ms. Chanda D. Kochhar, Chairperson
Mr. Sandeep BakhshiMr. N. S. Kannan
Mr. K. Ramkumar
Board Governance Remuneration &
Nomination Committee
Mr. M. K. Sharma, Chairman
Mr. K. V. Kamath
Mr. Anupam Puri
Prof. Marti G. Subrahmanyam
Customer Service Committee
Mr. K. V. Kamath, Chairman
Mr. Narendra Murkumbi
Dr. Anup K. Pujari
Mr. M. S. Ramachandran
Mr. M.K. Sharma
Ms. Chanda D. Kochhar
Fraud Monitoring Committee
Mr. M. K. Sharma, Chairman
Mr. K. V. Kamath
Mr. Narendra Murkumbi
Ms. Chanda D. Kochhar
Mr. Sandeep Bakhshi
Share Transfer & Shareholders'/
Investors' Grievance Committee
Mr. M. K. Sharma, Chairman
Mr. Narendra Murkumbi
Mr. N. S. Kannan
BUSINESS OBJECTIVE

 IMAGINATIVE AND PRESCIENT

To be the main provider of financial offerings in India and a major worldwide financial institution.

 CHALLENGE

• we are able to leverage our human beings, generation, speed and economic capital to: be the
banker of first desire for our customers by means of turning in high first-class, global-magnificence
provider.

• increase the frontiers of our commercial enterprise globally.

• Play a proactive role inside the complete realisation of India’s capability.
• hold a healthful monetary profile and diversify our profits across companies and geographies.
• hold high standards of governance and ethics.
• make contributions positively to the numerous nations and markets in which we perform.
• 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 banking,
mobile banking electronic display sy ICICI Bank was using Teradata for its data
warehouse. However, due to its proprietary hardware, the cost of procurement, upgrades
and administration was soaring. The closed box architecture of Teradata imposed
restrictions on scalability. Secondly, querying and loading could not happen
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 data. 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 solutions. The
solution would have to address not only current issues, but accommodate future growth
expectations and business requirements. ICICI Bank evaluated numerous data
warehousing solutions in the pursuit of solving its issues, and developed a shortlist of
alternatives for its migration proof-of-concept: Sybase, SAS and Netezza. The primary
criteria for evaluation was the price-to-performance ratio where Sybase IQ emerged the
clear winner. During this rigorous testing, Sybase IQ delivered faster results on
independent hardware and operating systems with minimum infrastructure. Commending
the improvements achieved, Amit Sethi, Joint General Manager, ICICI bank says, "What
impressed us wasthat even with overall lower costs, we could achieve significantly better
query performanceafter implementing the Sybase enterprise warehouse solution." ICICI
Infotech today launched an enterprise resourceplanning (ERP) solution for the small and
medium enterprises.
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 manage
all the important parts in the company such as product planning, parts purchasing,
maintaining inventory and interacting with suppliers and customers.
ICICI Infotech officials told a press conference here today that Orion Advantage offered
a set of business practice solutions for industry segments such as engineering,
autoancillary, pharmaceuticals, chemicals and IT distribution. Besides the cost advantage,
the ERP package also came pre-configured. ICICI Infotech had mapped the processes
specific to each industry segment into the package.

Mr. Manoj Kunkalienkar, Executive Director and President, ICICI Infotech, said that
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
packagefor the SMEs that bundled the server, database and operating system right now.
That was the advantage ICICI Infotech offered to SMEs as Orion Advantage came
bundled and preconfigured. Besides the high cost of generic ERP packages, their
implementation time as far as SMEs were concerned was also long. Orion Advantage
could be installed in 45 days.
ICICI Infotech had signed up six customers so far for the package and hoped to garner 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 centers
in Chennai into a single location and double the staff strength from 300 now in the next
two years.
The Chennai centers were involved in research and development of Orion ERP solutions
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 2001 (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  Reduced Transaction Cost
Processing
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 with
thegrowth of the economy, rising income levels, increased standard of living, and
affordability of banking products are promising factors for continued expansion.
PRODUCTS AND SERVICES
PERSONAL BANKING

Loan Product Deposit Product Investment &

Insurance
 Auto loan  Savings A/C  Mutual Funds
 Loan against  Current A/C  Bonds
security  Fixed Deposits  Knowledge Centre
 Loan against  Demat A/C  Insurance
property  Safe Deposit  General And Health
 Personal loan Lockers Insurance
 Credit card  Equity And
 2- wheeler loan Derivatives
 Commercial  Mudra Gold Bar
vehicles finance
· Home loans
· Retail business
banking
· Tractor loan
· Working
capital finance
· Construction
· Equipment finance
· Health care finance
· Education loan
· Gold loan
Cards Payment Services Access To Bank
 Credit Card  Net Safe  Net Banking
 Debit Card  Merchant  One View
 Prepaid Card  Prepaid Refill  InstaAlert Mobile
 Bill Pay Banking
--------------------------------  Visa Bill Pay  ATM
Forex services  InstaPay  Phone Banking
. 34
.
  Direct Pay  Email Statements
-------------------------------- Product And  VisaMoney  Branch Network
Services Transfers
 Trade Services  E-Monies Electronic
 Forex Service Funds Transfer
Branch Locater  Online Payment Of
 RBI Guidelines Direct Tax

 WHOLESALE BANKING

Corporate Small and Medium Financial Institutions

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

Financial Institutions

Mutual Funds

Stock Brockers

Insurance Companies

Commodities Business
Trust
s
  NRI SERVICES

Accounts & Deposits Remittances

 Rupee Saving A/C  North America

 Rupee Current A/C  Uk
 Rupee Fixed Deposits  Europe
 Foreign Currency Deposits  South East Asia
 Accounts For Returning Indians  Middle East
 Africa
 Others
Quick Remit
India Link
Check Lock Box
Telegraphic/ Wire Transfer
Fund Transfer Cheques/Dds/Tcs

Investment & Insurances Loans

 Mutual Funds  Home Loans

 Insurance  Loans Against Securities
 Private Banking  Loans Against Deposits
 Portfolio Investment Scheme  Gold Card Credit

Payment Services Access To Bank

 Net Safe  Net Banking

 Bill Pay  One View
 InstaPay  InstaAlert
 DirectPay  ATM
  PRODUCTS

ICICI bank gives wide form of Deposit products to suit your necessities. Coupled with
convenience of networked branches/ ATMs and facility of E-channels like internet and cell
Banking, ICICI bank brings banking at your doorstep. select any of its deposit merchandise and
offer your information on-line and their representative will contact you for Account beginning.

SAVING ACCOUNTS
ICICI bank gives clients a strength packed savings Account with a bunch of handy capabilities
and banking channels to transact via. So now customers can bank at their comfort, with out the
strain of waiting in queues.

SPECIAL FINANCIAL SAVINGS ACCOUNT:

The special savings Account has been designed keeping in mind the unique needs of companies
consisting of Trusts, associations, Societies, Councils, golf equipment and so forth. It presents
organizations solutions with brought fee and is right for tax exempted entities.

“existence PLUS”Senior citizens financial savings account

life PLUS,a special savings account for senior citizens from ICICI financial institution is filled
with a number of benefits,designed keeping your precise monetary requirements in mind.
• unique senior citizens table to cater to all banking transactions, so you don’t wait in
queues.
• better interest fee on FD/RD:avail the combined blessings of protection,felexibility and
appealing returns with ICICI bank constant Deposit and routine Deposit.
• free unique senior citizen existence PLUS debit card.
• cash multiplies facility.
• extended banking hours permits you to go to our branches,as consistent with your
convenience.
• anywhere banking get admission to to numerous offerings,ICICI bank has to provide –
every time,anywhere and from any place,together with branches,ATMs and contact banking.
• Nomination facility available.
• Quarterly average balance(QAB) requirement of Rs.5000.
• Quarterly bodily statements are added to your step to truely free of fee.
• Passbook on request.
YOUNG STARS ACCOUNT:

Young Stars is a banking provider for youngsters, elderly 1day -18 years, delivered to you by
ICICI bank to help the mother and father meet the prevailing and future aspirations that they
maintain for his or her toddler. It offers various savings and funding alternatives to the parent
along side teaching the kid to manipulate his/her private finance in a extra accountable and
unbiased
Manner.younger Stars will guide your baby through the arena of banking -thru checking the
account balance, a laugh zones and special pages on the net. It makes banking a pride and of
route teaches your infant to control their personal budget.With the pocket cash that you transfer
in your toddler's account, you could even save with him / her at younger Stars very very own
shopping page. You could even open a ordinary deposit to your baby's call.

Once you are completed with your 'banking', you could get admission to your child's account
with all the fun hyperlinks to important zones designed to fit your toddler's location of pursuits
and also impart expertise at the present day events of the world.

GAIN FEMALE SAVINGS ACCOUNT

The ICICI bank benefit woman Account permits today’s independent women to revel in trouble-
free banking offerings. besides the core ICICI bank benefit, the benefit girl savings Account is
packed with special blessings for our women clients. experience your gift and plan for the
destiny with ICICI bank’s benefit female savings Account.gain lady offers a especially designed
lady's debit card which allows you shop and store simultaneously, manages your family prices
and springs with a bag complete of gives connected to it.

• special worldwide woman’s Debit Card with plenty of offers.

• loose unlimited get entry to to any financial institution’s ATM.
• invoice Pay facility & Multi Channel get right of entry to.
• Payable-at-par cheque e-book.
• Nomination facility to be had.
• 0 balance facility with an RD of Rs.2000 or Quarterly average stability (QAB)
requirement of Rs. 10,000.

PRESENT DAY DEBTS:

Each enterprise requires efficient banking facilities to help its commercial enterprise activities.
Icici bank gives top rate first-rate carrier, unfolding a big selection of sophistication
merchandise. With era leadership and service the financial institution is able to meet a number of
the most difficult economic wishes of clients.a contemporary account is one this is required
through businessman, joint inventory agencies, establishments, public authorities, public
companies etc. Any enterprise that has severa banking tranactions need a modern account as it

•Permits jogging account helping limitless withdrawals and deposits.

•is supposed for comfort and no longer to save cash.

ROAMING CONTEMPORARY ACCOUNT

Only Roaming contemporary Account from ICICI bank travels the distance with clients
commercial enterprise. With superior technological capabilities consisting of MCC and LCC,
banking desires are properly taken care of, customers can get entry to their accounts at over 500
networked branches across the USA.
So even as clients deal with their enterprise, ICICI bank’s Roaming present day Account
simplifies banking for them.

REVENUE DEBTS

Income Account is a feature wealthy corporate payroll account with advantages for both
corporates and its personnel.
• The technique of drawing cheques for salaries is replaced with the aid of sending a single
ASCII document to the bank and the quantity is without delay credited into the personnel income
account
• Cuts down payroll processing workload
• Profits Account can be opened with minimal 10 personnel
• Immediate credit score of salaries

ICICI financial institution income Account is a benefit- rich payroll account for Employers and
personnel. As an organisation, you could opt for our profits money owed to permit easy
disbursements of salaries and enjoy severa other benefits too. With ICICI financial institution
earnings money owed your employees will enjoy the convenience of :

• Having the most important community of ATMs at their command,

• loose 24 hour phone Banking,

• free internet Banking.

All that the organization could require to do is to send ICICI financial institution an
recommendation (in shape of a cheque/debit guidance, ecs, etc) for the entire revenue amount
along with the income information of the designated employees in a tender and tough replica
format and we are able to credit score the respective employees' bills as consistent with your
assertion of advice.ICICI financial institution revenue debts advantages you in more than one
methods:-

• Reduces office work.

• Saves remittance fees.

Employees obtain on the spot credit score of salaries. Extra convenient than ecs. Except all the
above, personnel routinely come to be icici financial institution account holders with special
advantages and privileges of eight-8 banking, investment advisory and lots greater...

CONSTANT DEPOSITS:
Constant deposits are options which assist you develop your money therefore earning money in a
safer and secure manner.
ICICI gives its clients with numerous sorts of fixed deposit centers that are bendy and cater to
clients who've distinct want and desires in their constant deposits.

ICICI affords a set Deposit that permits clients to deposit their cash for simply as long as you
wish.

• wide variety of tenures – 15 days to 10 years.

• preference of investment plan – traditional and cumulative deposits.
• Partial withdrawal allowed.
• loan facility to be had – you may avail loan as much as 90% of principal and gathered
interest.
• automobile renewal facility – you may pick out this feature so that the deposit may be
renewed on adulthood.
• hobby compounded quarterly.
• additional hobby rate of zero.five% for senior citizens.

RECURRING DEPOSITS:

ICICI bank habitual Deposits are a great manner to invest small amounts of cash each month and
end up with a large kitty on maturity.high habitual billing and ordinary payments can be a drain
for your finances and as a result huge investments may additionally seem a plan away.

Recurring deposits ambitions to inspire savings without putting any strain on customers price
range by means of making them to place a lump sum quantity in constant deposit in one
move.The ordinary deposit additionally draws high charge of go back which are equal to the
fixed deposit costs and most significantly no TDS is relevant in it .the minimal balance of
deposit is of Rs.500 and thereafter in multiples of Rs.one hundred the minimal duration is 6
months and thereafter in multiples of three months, nomination facility is also available.

PROTECTION DEPOSITS:

A few Corporates stipulate to their new personnel to provide protection Deposit to reduce
attrition. ICICI bank’s thought for the worker is to keep the security Deposit in the shape of a
hard and fast Deposit (FD) with the bank. The employee can't withdraw such fds without the
consent of the business enterprise and the business enterprise has the proper to withdraw the FD
within the event of worker leaving the enterprise earlier than a sure stipulated period.
ICICI FINANCIAL INSTITUTION TAX-SAVER FIXED DEPOSIT

ICICI bank’s Tax-Saver fixed Deposit enables you to shop tax and earn excessive returns. A twin
gain choice based to maximise your advantage. ICICI bank’s Tax Saver FD is the appropriate
solution for your investment wishes.

EEFC ACCOUNT

Indian exports have surged over the past decade as a result of an extraordinary increase in sectors
like software program, biotechnology, gems, jewelry, textiles and so forth. due to this, the
quantity of inward remittances has additionally extended significantly. To defend the
corporations engaged in everyday export and import from the alternate rate fluctuations RBI has
allowed parking of overseas foreign money by way of exporters in an account precise as
exchange Earners overseas forex Account (EEFC). EEFC accounts are cutting-edge accounts
held in overseas foreign money with legal sellers of foreign exchange within the u . s . a ..

RESIDENT OVERSEAS FOREIGN MONEY (DOMESTIC) ACCOUNT

Do you want to save money whilst buying overseas foreign money for journeying overseas? you
can buy vacationer’s cheques, foreign forex in cash and foreign currency call for draft for your
prices foreign places. in case you are a common visitor, you can no longer need to undergo the
hassles of purchasing overseas foreign money on every occasion you tour abroad.

The Reserve financial institution of India has now made it less difficult so that you can get entry
to overseas currency with the aid of allowing a foreign foreign money account (domestic) for
resident Indians. consistent with RBI suggestions, ICICI bank has come up with a scheme that
enables you get rid of all of your foreign exchange issues. you may park your foreign forex in
ICICI financial institution under RFC (D) account. Non-hobby bearing Resident overseas foreign
money (D) (RFC (D)) with ICICI financial institution may be maintained in 4 primary currencies
(USD, EURO, GBP and jap Yen)

PRIVILEGE BANKING:
Privilege banking service ensures preferential treatment to its customers.

SILVER PRIVILEGE A/C

• Waiver of multi-metropolis cheque e-book utilization as much as Rs. 1,00,000 in line

with month.
• Waiver of DD/PO prices for upto Rs.50,000 per day.
• Preferential charges of gold cash,deposits lockesr &foreign exchange.
• Quarterly common balance requirement of Rs.25000.

GOLD PRIVILEGE A/C

• precedence processing in any respect ICICI bank branches and consumer care.
• loose usage of payable -at-par chequebook.
• loose worldwide gold debit card with higher daily withdrawal and spend limit.
• Waiver of DD/PO expenses for as much as Rs.one hundred,000 according to day.
• free everywhere banking facility.
• Prefrential charges for gold coins,deposit lockers and foreign exchange.
• Quarterly common stability(QAB) requirement of Rs.50000.

TITANIUM PRIVILEGE A/C

• Department dating manager supported with cellphone banking relationship supervisor.

• Priority processing at ICICI financial institution brancghes and purchaser care.
• unfastened international titanium debit card with higher every day withdrawal and spend
limit.
• loose anywhere banking facility.
• loose utilization of multy-city cheque ebook.
• loose bodily monthly account declaration.
• whole waiver on DD/PO prices.
• Preferential prices for gol coins,deposit lockers and forex.
• Quarterly common balance (QAB)requirement of Rs.75000 and total courting
fee(TRV)of Rs. 5,00,000.
CIRCLE OF RELATIVES BANKING:

Superior product benefits of privilige banking,wealth management and international non-public

customer(GPC) available to all the participants of your own family even as the specified
minimum balance may be maintained in any of the money owed.

• Get admission to to advanced blessings for the entire family.

• Flexibility to hold balances across account.
• Decrease minimal stability requirement at individual patron degree.
• single own family bank – comfort for the entire circle of relatives and less difficult funds
control.

OUTWARD REMITTANCE:

SHIP MONEY TO YOUR FAMILY OVERSEAS

ICICI bank offers you a simple way to send money outside India. Our Outward Remittance
facilities make remitting cash abroad brief, and reliable. ICICI financial institution’s Outward
Remittance is the answer for your all of your desires. Be it cash for training, present cash or
protection for loved ones or donation for a purpose. Our widespread network gives us reach to
maximum parts of the sector.

ADVANTAGE DEPOSIT

Advantage Deposit is a mixture of fixed deposit and mutual fund funding, providing you the
protection of a hard and fast deposit and the returns of an equity fund. benefit Deposit counters
fairness-market fluctuations via Systematic investment Plans.

• Aggregate of a fixed Deposit (with month-to-month hobby payout) and Systematic

investment Plan (SIP) of a Mutual Fund.
• Re-funding of monthly hobby payout of constant Deposit into systematic funding plan of
Mutual Fund.
• Automatic debits to account via standing training / ECS debit mandate.

NEW PENSION MACHINE OF PRESIDENCY OF INDIA

ICICI financial institution with forty nine branches is a factor of Presence (POP) for the new
PENSION system launched on may additionally 1, 2009 via the authorities of India. The scheme,
promoted with the aid of the PFRDA (Pension Fund Regulatory and improvement Authority,
government of India), is a first of its kind in India and is being launched pan-India by way of 22
different POP's as well.

The reason of this pension scheme is to promote security of earnings to its subscribers in their
vintage age. The scheme will empower a subscriber to plan his personal retirement and pension.
It no longer best will help him keep for existence after retirement however additionally is a great
funding device as the returns are market-driven. for optimum returns, the authorities has
appointed six fund managers for subscribers to pick out from.

 LOANS

HOME LOAN

hobby quotes on home loans have come down appreciably in the previous few years. those who
opted for housing loans in the years long past through, are nonetheless servicing them at 17% to
21% in line with annum. quite a price to pay, on account that you can get a mortgage these days
for around 12% per annum. In this sort of case, you could opt for a stability transfer. beneath this
scheme, clients can update their existing antique high interest mortgage through a less expensive
(identical to applicable cutting-edge fees) mortgage. ICICI domestic Finance will now not most
effective finance the stability quantity of splendid mortgage but also your prepayment fees to the
antique housing finance organisation.
The end result:

• A decrease EMI with the same tenure .

• a discounted tenure with the same EMI.
• a reduced tenure and EMI .
• The same EMI and tenure but an additional amount as a loan.

NON-PUBLIC LOANS

ICICI financial institution non-public Loans are easy to get and clearly hassle unfastened. With
minimal documentation you can now comfy a loan for an quantity up to Rs.15 lakhs.

•Loans for salaried & self hired people.

•Loans are available from Rs. 20,000 to Rs. 15 Lakhs.
•Reimbursement tenures from 12 - 60 months.
•No security, Collateral or Guarantors required.
•Loans may be used for any motive with out a questions asked concerning the give up use of the
loan.

•A stability transfer facility available for those who need to retire any better debt.

•All loan payments are done through equated month-to-month instalments (EMI).

AUTOMOBILE LOAN

The NO. 1 financier for car loans in the us of a. community of greater than 1500 channel partners
in over 780 places. Tie-united states of americawith all main car producers to make sure the
quality deals. flexible schemes & short processing. trouble-free application manner on the
clicking of a mouse.
COMMERCIAL CAR LOAN
• Reaches you via extra than seven hundred locations across the u . s ..

• variety of merchandise underneath one umbrella.

• funding of diverse products like HCVs, Buses, MCVs, LCVs, three wheelers & used
vehicle.
• range of offerings on present loans & extended rchandise like funding of new motors,
refinance
on used cars, stability switch on excessive cost loans, pinnacle up on current loans, Xtend
product, running capital loans & other banking merchandise..
• favored financier status with most of the leading producers.
• simple documentation.
• quick turn around time.
• bendy financing answers to satisfy the character requirement.

WHEELER LOANS:

"Zoom" away in your favourite wheeler. ICICI provides attractive schemes at aggressive interest
fees.

• Finance facility to be had for all wheelers ranging from mopeds to motor motorcycles.

• Now avail Finance upto ninety%* of the On street price of the

car, repayable in convenient tenure options starting from 6

months to 36 months*.

• journey easy Pay smooth with ICICI bank Wheeler Loans.

• In an unlikely case of your now not meeting our norms NO problem - you may still avail
our loan, any blood relative may be your co-applicant.
• existing ICICI bank clients ride away for your favourite Wheeler by availing mortgage
On phone*-- a facility to get an instant mortgage over the telephone!! observe for mortgage
online, name or thru sms.

FARM SYSTEM LOANS:

• ICICI is the favored financier for nearly all main tractor producers in the usa.

• ICICI price range farm equipments in over 381 places unfold throughout the u . s . a ..

• gives speedy processing of documents with easy documentation.

• bendy reimbursement alternatives in tandem with the farmer's seasonal liquidity.

• month-to-month, Quarterly and half of-every year reimbursement styles to

choose from. comfortable reimbursement tenures from 1 12 months to six years.

CONSTRUCTION EQUIPMENT MORTGAGE

Having funded infrastructure for over four a long time, ICICI is aware the want of the customers
better. ICICI bank gives attractive economic programs through their first-rate distribution
network. the products are customised for new entrepreneur to massive enterprise houses. ICICI
has tie-up with leading production gadget manufacturers for huge variety of products. The
financial institution

take over present excessive value loans at aggressive terms ensuing in huge financial savings and
is brief in processing because of smooth formalities and one time sanction of loans for
disbursement over a time period.
WORKPLACE GADGET MORTGAGE:

► minimal documentation required . ► Doorstep service. ►competitive hobby costs.

►flexible repayment structure. ►problem-free utility technique with the clicking of a mouse.
►details in your application repute on line.

SCIENTIFIC EQUIPMENT MORTGAGE:

expert docs are aware of the wonderful benefits that the trendy scientific device can supply their
sufferers. ICICI bank clinical device Loans supports experts of their effort to provide the great to
their patients. it's our humble manner of being concerned in a noble profession.
Loans are supplied for:

• buy of new equipments.

• Takeover of current loans.

OUR KEY FEATURES ARE:

• Doorstep carrier.
• funding in extra than 150 places across the country.
• The financial institution presents competitive hobby charges.
• ICICI also offers bendy repayment shape.

MORTGAGE IN OPPOSITION TO SECURITIES

Loans against Securities allows customers to achieve loans in opposition to their securities. so
they get on the spot liquidity while not having to sell their securities.
All clients need to do is pledge your securities in favour of ICICI financial institution The
financial institution will then furnish them an overdraft facility upto a value decided on the basis
of the securities pledged with the aid of them. A modern-day account can be opened and
purchaser can withdraw cash as and after they require. interest could be charged most effective
on the amount withdrawn and for the time span utilised. ICICI provide loans in opposition to:

• Demat shares
• RBI alleviation Bonds
• Mutual price range devices
• India Millennium Deposits (IMDs)
• ICICI financial institution Bonds
• lifestyles insurance regulations (unmarried premium)

CREDIT SCORE PLAYING CARDS:

ICICI bank credit score cards provide you with the facility of cash, convenience and various
benefits, anywhere in the world. those advantages variety from lifestyles timefree cards,
coverage advantages, worldwide emergency assistance provider,reductions, utility payments,
tour discounts and lots greater.

DEBIT CARDS:

The ICICI financial institution Debit Card is a innovative shape of coins that lets in customers to
get right of entry to their bank account around the clock, round the world.The ICICI financial
institution Debit Card can be used for shopping at more than a hundred,000 merchants in India
and thirteen million traders international.

TOUR CARD:
imparting ICICI financial institution travel Card. The trouble loose way to journey the arena.
visiting with US dollar, Euro, Pound Sterling or Swiss Francs; looking for safety and comfort;
take ICICI bank tour Card. Issued in duplicate. offers the Pin based safety. Has the convenience
of utilization of credit score or Debit card.

PRE PAID PLAYING CARDS:

ICICI financial institution brings to you a whole bouquet of pre-paid playing cards providing
price answers at your fingertips. ICICI financial institution pre-paid cards are a secure
&convenient manner for partner bills, disbursements, gifting & small price ticket transactions.
Pre-paid cards are available on a VISA platform therefore presenting accessibility to over one
lakh service provider establishments & cash withdrawal from all VISA ATMs in India.

 INVESTMENTS

ICICI bank cares about all desires. in conjunction with Deposit merchandise and loan services,
ICICI bank assists humans to manage their price range via presenting diverse funding
alternatives starting from ICICI bank Tax Saving Bonds to equity Investments via initial Public
gives and funding in pure gold. ICICI financial institution enables following funding products:

• ICICI bank Tax Saving Bonds

• government of India Bonds
• investment in Mutual budget
• preliminary Public gives with the aid of company
• investment in "pure gold"
• foreign exchange offerings
• Senior citizens savings Scheme, 2004
Customers can invest in above products through any of ICICI financial institution branches. For
pick out products ICICI bank additionally affords the ease of making an investment thru digital
channels like atms and internet (icicidirect.com)
Chapter 3
RESEARCH METHODOLOGY
Research methodology

The method followed for challenge the studies calls for a whole lot of attention because it has
direct concerning accuracy, reliability and adequacy of consequences received. it's miles due to
this cause that research approach, which we used at the time of task the studies, wishes to be
elaborated upon. it may be understood as a technological of reading understanding studies is
finished scientifically. So, the research methodology now not first-class talks about the studies
techniques knowknowledge moreover considers the good judgment in the back of the approach
used within the context of the research have a examine. research approach is a manner to
systematically study and treatment the studies issues. If a researcher wants to claim his study as
an awesome have a study, he need to clearly country the method tailored in enticing within the
studies the studies in order that it manner be judged with the aid of the use of the reader whether
or no longer the approach of hard work completed is sound or no longer.

The research methodology here includes:-

 aim of have a look at

 that means of research.

 research hassle.

 research format.

 facts series approach.

 assessment and interpretation of records

 hassle of look at
INTENTION OF THE TAKE A LOOK AT
goals are the ends that states specifically information motive be carried out. every have a observe
need to have an aim for which all of the efforts have been completed. without objective no
research may be carried out and no result can be received. on the concept of objective all of the
research approach is discovered. targets are the primary issue of each study. The objective of the
have a look at offers path to undergo the studies hassle. It courses the researcher and maintains
him at the proper song. i've goals regarding my studies project. these are shown underneath :-

1. primary goal
2. Secondary intention

1. PRIMARY PURPOSE :-

1) To look at the software program program used in ICICI bank.

2) analyse the economic statements of the organization to evaluate it’s proper financial role with
the aid of the usage of ratios.

2. SECONDARY AIM :-

1) To find out the shortcomings in ICICI economic group.

2) to peer whether ICICI financial institution is going well or now not in distinct areas.

SIGNIFICANCE OF THE TAKE A LOOK AT

• by means of “economic overall performance evaluation OF ICICI financial institution”
we might be capable of get a fair picture of the monetary position of ICICI financial institution.

• via displaying the economic performance to numerous creditors and lenders it's miles
feasible to get credit rating in smooth phrases if proper economic situation is maintained within
the corporation with assets outweighing the liabilities.

• protecting the belongings of the organization.

• Compliances with prison requirement.

 MEANING OF RESEARCH:

research is described as “a systematic and systematic look for pertinent information on a selected
subject count”. studies is an paintings of scientific investigation. research is a systematized effort
to benefit now statistics. it's miles a cautious research or inquiry in particular through search for
new records in any branch of know-how. studies is an academic hobby and this term ought to be
applied in a technical sense. research carries defining and redefining troubles, formulating
hypothesis or recommended solutions. Making deductions and accomplishing conclusions to
determine whether or not or no longer they if the formulating hypothesis. research is
consequently, an authentic contribution to the existing stock of information making for its
improvement. The search for statistics through goal and systematic approach of finding answers
to a hassle is studies.

 RESEARCH TROUBLE

the first step while carrying out studies is cautious definition of studies hassle. “to Err is the
human” is a proverb which expertise that no character is ideal in this global. each researcher has
to stand many problems which accomplishing any studies that’s why problem announcement is
described to understand which kind of problems a researcher has to face even as engaging in any
Have a take a look at. it's far stated that,“trouble nicely defined is trouble half of of solved.”

essentially, a trouble declaration refers to a few issue, which researcher memories inside the
context of both a theoretical or practical scenario and desires to achieve the answer for the same.

The hassle assertion proper right here is:-

“TO MAKE A monetary evaluation OF financial STATEMENTS OF ICICI financial

institution”
 RESEARCH LAYOUT

A studies designs is the association of conditions for series and evaluation data in a manner that
dreams to combine relevance to the studies purpose with monetary gadget in machine. research
layout is the conceptual shape with wherein studies in conducted. It constitutes the blueprint for
the collection size and analysis of data. studies layout consists of and outline of what the
researcher will do shape writing the speculation and it operational implication to the very last
analysis of information. A research layout is a framework for the take a look at and is used as
guide in series and studying the records. it's far a technique specifying which method is probably
used for amassing and analyzing the statistics. It moreover include the time and fee budget
considering maximum research are finished under those price charge variety because maximum
research are finished underneath theses tow constraints. The design is such research need to be
rigid and no longer flexible and most popularity interest on the following:-

 what is the have a observe about?

 Why is the take a look at being made?
 in so one can the have a study be done?
 What type of records is needed?
 in which may be required information be positioned?
 What time frame will the have a look at consist of?
 what's going to be sample layout?
 What techniques of records collection might be used?
 How will the records be analyzed?
 In what style will the report be organized?

SORTS OF STUDIES LAYOUT :

 EXPERIMENTAL research layout

 EXPLORATORY research layout
 DESCRIPTIVE& DIAGNOSTIC studies
Exploratory research layout: This studies design is desired whilst researcher has a indistinct idea
approximately the hassle the researcher has to explore the mission.

Experimental research layout – The studies format is used to offer a sturdy basis for the lifestyles
of casual courting amongst or greater variables.

Descriptive studies layout – It seeks to determine the answers to who, what, in which, while and
the manner questions. it's far primarily based on a few previous knowledge of the matter.

Diagnostic research layout It determines the frequency with which some aspect takes place or its
affiliation with a few element else.

STUDIES FORMAT USED IN THE OBSERVE:

Descriptive studies layout is used on this examine because it will ensure the minimization of bias
and maximization of reliability of records collected. Descriptive take a look at is based totally on
a few preceding expertise of the challenge. studies has had been given a totally particular goal
and smooth reduce facts necessities The researcher needed to use truth and facts already
available through monetary statements of earlier years and analyse those to make crucial
evaluation of the to be had material. sooner or later via making the sort of the research conducted
to be every Descriptive and Analytical in nature. From the have a look at, the sort of data to be
accumulated and the manner for use for this motive had been determined.

 INFORMATION SERIES TECHNIQUE

The method of statistics collection begins offevolved after a research hassle has been described
and research format ahs been chalked out. There are varieties of information –

PRIMARY RECORDS -

it is first hand records, that is accumulated with the useful resource of researcher itself. number
one data is accumulated with the aid of severa methods on the way to get a precise, accurate,
realistic and relevant statistics. the primary device in collecting number one statistics became
studies and remark. It changed into achieved by means of way of a right away method and
observation from the officers of the organisation.

SECONDARY RECORDS - it is the data this is already gathered via a person else. Researcher
has to analyze the statistics and interprets the effects. It has usually been critical for the of
entirety of any file. It gives reliable, suitable, proper enough and precise

SHAPE OF RECORDS USED IN THE TAKE A LOOK AT

The desired information for the test are basically secondary in nature and the statistics are
accumulated from

 The audited reports of the organisation.

 net – which incorporates required monetary statistics gathered shape ICICI economic
organization’s dependable net web site i.e www.icici.com and some one of a kind websites on
the internet for the reason of getting all of the required economic statistics of the financial
institution and to get specific approximately ICICI economic institution for the ease of examine.
 Brouchers of ICICI financial group.
 The treasured cooperation extended by workforce members and the branch manager of
ICICI financial institution,dharmshala contributed masses to fulfill the necessities in the series of
facts in order to complete the venture.
Bankruptcy
Financial evaluation

 
TECHNIQUE OF FINANCIAL ASSERTION ANALYSIS

The subsequent process is followed for the analysis and interpretation of monetary statements:-

 The analyst have to acquaint himself with concepts and postulated of accounting. He
have to know the plans and rules of the control so that he can be capable of find out whether or
not those plans are well performed or no longer.

 The extent of analysis ought to be determined so that the sphere of labor can be
determined. If the goal is discover. earning ability of the business enterprise then evaluation of
income announcement may be undertaken. know-how, if monetary role is to be studied then
balance sheet evaluation may be important.

 The monetary facts take delivery of in announcement should be diagnosed and

rearranged. it'll involve the grouping comparable facts under identical heads. Breaking down of
man or woman additives of statement in keeping with nature. The facts is reduced to a popular
shape.

 A courting is established amongst monetary statements with the help of gear &
techniques of analysis consisting of ratios, traits, not unusual size, fund float and many others.

 The information is interpreted in a easy and comprehensible way. The significance and
utility of financial records is explained for help in selection making.

 The conclusions drawn from interpretation are presented to the control in the shape of
reports.
 

 varieties of monetary analysis

THERE ARE ONE OF A KIND WAYS OF EVALUATION THE MONETARY
STATEMENTS:

1. On the idea Of method Of analysis

a) Horizontal evaluation: this is used whilst the financial declaration of some of years are to
be analyzed. Such evaluation expertise the trends and the growth or decrease in various objects
now not most effective in absolute figures information also in percentage shape. This evaluation
indicates the strengths and weaknesses of the company. This evaluation is likewise called as
dynamic analysis because it also expertise the fashion of the enterprise.

b) Vertical analysis : that is used while financial statements of a specific year or on a

selected date are analyzed. For this sort of evaluation we typically use commonplace length
statements and the ratio analysis. It includes a examine of quantitative dating among diverse
objects of stability sheet and profit and loss account. This form of evaluation is static evaluation
due to the fact that is based totally at the financial outcomes of three hundred and sixty five days.
Vertical evaluation is useful when we have to examine the overall performance of various
departments of the equal organization.

Amongst those two styles of analysis, horizontal analysis is more useful as it brings out greater
certainly the trends of working of a company. This gives us extra concrete bases for destiny
planning.

2. On the premise Of records to be had

a) inner evaluation: This evaluation is primarily based at the records to be had to the
commercial enterprise firm handiest .as a result internal analysis is made by means of the
control. internal evaluation is more dependable and useful for financial decisions.

b) outside evaluation : This analysis is made on the idea of published statements,reviews

and informations. This analysis is made by external parties which includes
lenders,buyers,banks,monetary evaluation and so on. outside analysis is much less reliable in
evaluation to inner evaluation because of confined and regularly incomplete facts.

3. On the premise Of quantity Of firms

a) Inter-firm analysis : while monetary evaluation of or greater agencies or companies are

analyzed and in comparison over some of accounting length, it's far called inter-firm analysis.

b) Intra -firm analysis : intra-company analysis is concerned with the analysis of financial
performance of different devices or departments or segments of the identical employer or
organization. further whilst financial statements of two or extra years of the equal company are
analyzed and as compared it is also known as as intra-firm evaluation.

4. On the premise Of targets

a) Accounting analysis: Accounting evaluation is analysis of past financial performance and

involves analyzing information generally commonplace accounting ideas and conventions had
been implemented in arriving on the values of belongings, liabilities, sales and costs.

b) potential analysis : potential analysis involves growing forecasted economic statements

preserving in view the modifications which might be possibly to form and affect the business
given the assumptions about these modifications and the predicament of the forecasting
technique used. this is pretty complicated analysis.

METHODS/EQUIPMENT OF MONETARY ANALYSIS

Some of techniques may be used for the motive of analysis of economic statements. Those also
are termed as strategies or tools of monetary analysis. Out of those, and employer can pick the
ones techniques which can be appropriate to its necessities. The important techniques of
monetary analysis are:-

a. Comparative monetary statements

b. common-length statements
c. fashion analysis
d. Ratio evaluation
e. finances waft evaluation
f. cash float analysis
g. spoil even point evaluation

A. Comparative monetary statements:

Whilst economic statements figures for two or mote years are positioned facet-facet to facilitate
evaluation, these are called ‘comparative monetary Statements’. Such statements now not only
expertise the absolute figures of diverse years know-how additionally offer for columns to
suggest to increase ort decrease in those figures from one year to any other. in addition, these
statements might also sknowknowledge the alternate from three hundred and sixty five days to
another on percentage form. Such cooperative statements are of extraordinary fee in forming the
opinion regarding the development of the enterprise.

Objectives purpose or significance of comparative monetary statements

1.To simplify records

2.To make inter period/inter-firm contrast
three.to suggest the developments
4.To allow forecasting
5.to suggest the strengths and weaknesses of the firm
6.To examine the overall performance
7.To analyse costs
8.To analyse profits

Equipment for contrast of financial statements

Comparative monetary declaration is a tool of monetary evaluation that depicts alternate in each
item of the financial declaration in each absolute amount and percent time period, taking the
object in preceding accounting period as base.
CONTRAST AND EVALUATION OF ECONOMIC STATEMENTS MAY BE DONE
THE USAGE OF THE FOLLOWING GEAR:

1.Comparative stability Sheet : The comparative balance sheet understanding increase and
reduce in absolute phrases as well as possibilities ,in diverse belongings ,liabilities and capital. A
comparative evaluation of balance sheets of two durations gives information regarding progress
of the commercial enterprise company.
the principle motive of comparative stability sheet is to measure the short- term and lengthy-term
solvency position of the commercial enterprise.

2. Comparative profits assertion : Comparative profits assertion is ready by taking figures of

two or more than accounting durations,to enable the analyst to have exact understanding about
the progress of the enterprise.Compartative profits statements facilitate the horizontal analysis
due to the fact that each accounting variable is analysed horizontally.

B. Common size statements:

Commonplace size statements are such statements in which the objects of financial statements
are protected into percent of not unusual base. In common-length profits statement, via assuming
net income as 100(i.e %) and other individual items are transformed as percentage of this.
Similarly, in common –size balance sheet, overall belongings are assumed to be a hundred (i.e
%) and individual property are expressed as percentage.

GOALS OF COMMON LENGTH STATEMENTS

1. Imparting the trade in diverse items on the subject of general property or general
liabilities or internet income.
2. Establishing a relationship.
3. Presenting a common base for contrast.
STYLES OF COMMONPLACE LENGTH STATEMENTS

Common-length balance Sheet : A not unusual –length stability sheet is a assertion in which
overall of assets or liabilities is believed to be equal to one hundred and all the figures

Are expressed as percent of the whole. That is why it's far called percent stability sheet.
Common-size balance sheet facilitate the vertical analysis because every item of the balance
sheet is analyzed vertically.

Common-size earnings statement: common-size profits statement is a declaration in which the

figures of net sales is thought to be same to a hundred and all other figures of “income and loss
A/c” are expressed as percentage of internet income.this assertion facilitate the vertical analysiss
since each accounting variable is analyzed vertically. you'll be able to draw conclusion,
regarding the behaviour of prices over time period by way of inspecting those probabilities.

.Fashion evaluation:

Fashion percent are very useful is making comparative study of the financial statements for a
number of years. Those imply the direction of motion over a protracted tine and assist an analyst
of monetary statements to form an opinion as to whether or not favorable or damaging
inclinations have advanced. This allows in destiny forecasts of various gadgets. For calculating
fashion percentages any yr may be taken because the ‘base yr’. Each item of bease yr is thought
to be identical to 100 and on that basis the proportion of item of each 12 months calculated.

Ratio evaluation:
Which means :

Absolute figures expressed in economic statements by means of themselves are meaningfulness.

Those figures regularly do not convey an awful lot meaning until expressed when it comes to
other figures. As a result, it may be say that the relationship between figures, expressed in
arithmetical terms is called a ratio.

“in step with R.N. Anthony.”

“A ratio is sincerely one number expressed in phrases of some other. it's miles discovered
with the aid of dividing one quantity into the alternative.”

TYPES OF RATIOS

1. Proportion or pure Ratio or simple ratio.

2. Price or so regularly.
3. Percent
4. Fraction.

GADGETS AND BLESSINGS OR USES OF RATIO EVALUATION

1. Helpful in evaluation of financial statements.
2. Simplification of accounting data.
3. Useful in comparative look at.
4. Beneficial in locating the susceptible spots of the enterprise.
5. Helpful in forecasting
6. Estimate approximately the fashion of the enterprise
7. Fixation of perfect standards
8. Effective manage
9. Look at of economic soundness.

QUANDARY OF RATIO ANALYSIS

1. False accounting statistics gives fake ratios

2. Comparisons now not viable of various corporations undertake distinct
3. Accounting guidelines.
4. Ratio analysis turns into much less powerful due to fee stage
5. Exchange
6. Ratios can be misleading in the absence of absolute statistics.
7. Restricted use of a unmarried ratio.
8. Window-dressing
9. Loss of right requirements.
10. Ratio by myself are not ok for proper conclusions
11. Impact of personal capability and bias of the analyst.

TYPE OF RATIOS
In view of the financial control or in step with the tests glad, numerous ratios were classifieds as
beneath:

Liquidity ratios : those are the ratios which degree the fast-time period solvency or economic
role of a firm. these ratios are calculated to remark upon the quick-time period paying capability
of a concern or the company’s capability to meet its modern duties.

Lengthy –term Solvency and Leverage Ratios : long-term solvency ratios bring a firm’s ability
to fulfill the interest fee and compensation schedules of its long-term responsibility e.g. Debit
equity Ratio and interest coverage Ration. Leverage Ratios.

Activity Ratios: pastime ratios are calculated to measure the performance with which the
resource of a company had been hired. those ratios also are referred to as turnover ratios because
they suggest the rate with which property are being turned over into sales e.g. borrowers turnover
ratio.

Profitablity ratios: those ratios measure the outcomes of commercial enterprise operations or
basic overall performance and powerful of the firm e.g. gross earnings ratio, working ratio or
capital hired. Commonly, kinds 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 Activity Ratios Profitability

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

2. Useful in Preparing the Cash Budget.
3. Comparison with the Cash Budget.
4. Study of the Trend of Cash Receipts and Payments.
5. It explains the Deviations of Cash from Earnings.
6. Helpful in Ascertaining Cash Flow from various Separately.
7. Helpful in Making Dividend Decisions.
 2. TREND ANALYSIS
Trend Percentage Of ICICI Bank From 2004-2005 To 2008-2009
(base year 2004 -05) Percentage(%) figures
Particulars 2005 2006 2007 2008 2009
Deposits 100 165 231 245 219
Advances 100 160 214 247 239
Net profit 100 127 155 207 187

Trend graph of ICICI Bank

300

250
percentage(%)

200
DEPOSITS
150 ADVANCES
NET PROFIT
100

50

0
2005 2006 2007 2008 2009
Years

Interpretation:

 There is a continous increase in the deposits till the year ending 2008 followed by
a downfall in the year ending 2009 due to repayment od deposits in this year.
 Similarly advances also shows as increasing trend till the year ending 2008 followed by
a slight downfall in the year ending 2009.
 There has been a substantial increase in net profit till the year year ending 2008.In
four years it has been more than double.

The overall performance of the bank is satisfactory.

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 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 current assets
divided by current liabilities. If the current assets of a company are more than twice the
current liabilities, then that company is generally considered to have good short-term
financial strength. If current liabilities exceed current assets, then the company may
have problems meeting its short-term obligations.

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

Current Ratio of ICICI Bank for the period of

2005-2009

1.6
1.4 1.39 1.36
1.17 1.23
1.2
1.01
1
Ratio

0.8 Current Ratio

0.6
0.4
0.2
0
2005 2006 2007 2008 2009
Years

Year Current Assets Current Liabilities Current Ratio

(Rs. In crores) (Rs. In crores)
2005 21632.56 21396.16 1.01
2006 29549.79 25227.88 1.17
2007 53421.59 38228.64 1.39
2008 58615.76 42895.38 1.36
2009 54130.18 43746.43 1.23

 Interpretation:
An ideal solvency ratio is 2. The ratio of 2 is considered as a safe margin of solvency
due to the fact that if current assets are reduced to half (i.e.) 1 instead 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 satisfactory as the safety margin is very less

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or zero. Therefore the bank should keep 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 prepaid
expenses are considered as quick assets.

Quick Ratio = Total Quick Assets

Total Current Liabilities

Quick Assets = Total Current Assets – Inventory

Liquid Ratio of ICICI Bank for the period of 2005-2009

1.2

1 0.97
0.88

0.8

0.6 0.67 0.68

Ratio

0.6 Liquid Ratio

0.4

0.2

0
2005 2006 2007 2008 2009
Years

2005 12929.97 21396.16 0.60

2006 17040.22 25227.88 0.67
2007 37121.33 38228.64 0.97
2008 38041.13 42895.38 0.88
2009 29966.56 43746.43 0.68

 Interpretation:
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 2005,2006 & 2009 but in 2007 & 2008 it is close to 1 which is not satisfactory.
This means the bank has not managed its funds properly in this particular period.Therefore
bank should rationally utilise its funds to maintain an ideal liquid ratio.

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 EARNING PER SHARE:
In order to avoid confusion on account of the varied meanings of the term capital
employed, the overall profitability can also be judged by calculating earning per
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 the
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 being
effectively used or not. It also helps in estimating the company’s capacity to pay
dividend to its equity shareholders.

Earnings Per Share Ratio of ICICI Bank for the

period of 2005-2009

40 37.37
35 34.59 33.78
28.55
30 27.22
25
Ratio

Earnings Per Share

20
15
10
5

0
2005 2006 2007 2008 2009
Years

Year Net Income Available No. Of Equity EPS

For Shareholders Shares
(Rs. In crores) (Rs. In crores)
2005 2005.2 73.6716 27.22
2006 2540.07 88.9823 28.55
2007 3110.22 89.9266 34.59
2008 4157.73 111.2687 37.37
2009 3758.13 111.325 33.78

 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.

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 Here the Earning Per Share is shows a persistent increase till the year 2008 after that in the
year 2009 Earning Per share is followed by a downfall due to decline in profits.
DIVIDEND PER SHARE :

It is expressed by dividing dividend paid to equity shareholders by no. of equity shares.this

shows the per share dividend given to equity shareholders.It is very helpful for potential investors
to know the dividend paying capacity of the company.It affects the market value of the company.

Dividend Per Share = Dividend Paid To Equity Shareholders No. Of

Equity Shares

Dividend Per Share Ratio of ICICI Bank for the

period of 2005-2009

12 11.03 11
10.02
10
8.59 8.53
8 Dividend Per Share
Ratio

Ratio
6
4

0
2005 2006 2007 2008 2009
Years

Year Dividend Paid No. Of Equity DPS

Shares
(Rs. In crores) (Rs. In crores)
2005 632.96 73.6716 8.59
2006 759.33 88.9823 8.53
2007 901.17 89.9266 10.02
2008 1227.7 111.2687 11.03
2009 1224.58 111.325 11

 Interpretation:

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.
 Here the Dividend Per Share is increasing year after year except a little decline in 2009.otherwise
the dividend per share ratio of the bank is quite satisfactory 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 follows:

Net Profit Ratio = Net Profit X 100

Net Sales

This ratio helps in determining the efficiency with which affairs of the business 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 on effective
measure to check the profitability of business.

Net Profit Ratio of ICICI Bank for the period of 2005-2009

25
21.3
20
18.42

15 13.52 13.5
Ratio(%)

12.08
Net Profit Ratio
10

0
2005 2006 2007 2008 2009
Years

Year Net Profit Sales Net Profit Ratio

(Rs. In crores) (Rs. In crores) (in %)
2005 2005.2 9409.9 21.3
2006 2540.07 13784.49 18.42
2007 3110.22 22994.29 13.52
2008 4157.73 30788.34 13.5
2009 3758.13 31092.55 12.08

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  Interpretation:
Although both the sales and net profit have increased during the above period but 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 the 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 net operating profit
is calculated without considering non-operating expenses and non-operating incomes. If we
deduct this ratio from 100,the result will be operating ratio. Higher operating profit ratio enable
the organization to recoup non-operating expenses out of operating profits and provide
reasonable return.

Operating Profit Ratio of ICICI Bank for the period

of 2005-2009

40
35 34.02
31.41
30 28.7
25.54 25.85
25
Ratio

20 Operating Profit Ratio

15

10

0
2005 2006 2007 2008 2009
Years

Year Operating Profit Sales Operating Profit

(Rs. In crores) (Rs. In crores) Ratio (in %)
2005 2956 9409.9 31.41
2006 4690.67 13784.49 34.02
2007 5874.4 22994.29 25.54
2008 7960.69 30788.34 25.85
2009 8925.23 31092.55 28.7

 Interpretation:

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 In the year 2005 & 2006 the operating profit is 31.41% & 34.02% respectively. After that it has
been consistently declined from the year 2007 till 2008 and again gaining momentum in 2009.
This may be due to the reason that operating expenses have been increased more as compared
to sales during the above period consequently reducing the operating profits.Therefore the bank
should check on unnecessary operating expenses to correct this situation and to provide a
sufficient return.
RETURN ON NET WORTH:

It measures the profitability of the business in view of the shareholders. It judges the earning
capacity of the company and the adequacy of return on proprietor’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

Return On Net Worth Ratio of ICICI Bank for the

period of 2005-2009

18
16 15.54
14 12.61
11.26
12
10 8.88
Ratio

7.53 Return On Net Worth

8
6
4
2
0
2005 2006 2007 2008 2009
Years

Year Net Profit After Shareholder's Fund Return On Net

Interest And Tax Worth (in %)
(Rs. In crores) (Rs. In crores)
2005 2005.2 12899.97 15.54
2006 2540.07 22555.99 11.26
2007 3110.22 24663.26 12.61
2008 4157.73 46820.21 8.88
2009 3758.13 49883.02 7.53

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  Interpretation:

The net profit after interest and tax have increased slowly till the year 2008 followed by a
downfall due to high interest payments,operating expenses and taxation liability.consequently the
networth ratio has declined considerably and has reduced to more than half in the year 2009 than
it was in 2005.
RETURN ON CAPITAL EMPLOYED:

It establishes relationship between profit before interest and tax and capital employed. 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 profitabilityof the
business in relation to investment made in business. It also shows how efficiently the resources
are used in the business.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:

Return On Capital Employed of ICICI Bank for the

period of 2005-2009

9
8.29
7.99
8

7
6.22 6.52
5.61
6
5
Ratio

Return On Capital Employed

4

0
2005 2006 2007 2008 2009
Years

Year Net Profit Before Capital Employed Return On Capital

Interest And Tax Employed (in %)
(Rs. In crores) (Rs. In crores)
2005 9098.09 146263.25 6.22
2006 12694.05 226161.17 5.61
2007 20006.54 306429.48 6.52
2008 28540.34 356899.69 7.99
2009 27842.9 335554.53 8.29

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  Interpretation:
The above table exhibit the return on capital employed ratio of the bank for last five years.This
ratio measures the earning of the net assets of the business. The ratio was 6.22% in year 2005.
After that it rised to the tune of 5.61%,6.52%,7.99% and 8.29% in year 2006, 2007, 2008 and
year 2009 respectively. It lead to the conclusion bank rising but very little proportion of return
on capital employed.
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 be 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.Long-term creditors can assess the
security of their funds in a business.it indicates 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 view of creditors.

Debt Equity ratio of ICICI Bank for the period of

2005-2009

14 12.97
11.99
12
10.14
10
7.53
8
Ratio

6.6 Debt Equity Ratio

6

0
2005 2006 2007 2008 2009
Years

Year Debt Equity Debt Equity Ratio

(Rs. In crores) (Rs. In crores)
2005 154759.45 12899.97 11.99
2006 228832.96 22555.99 10.14
2007 319994.86 24663.26 12.97
2008 352974.87 46820.21 7.53
2009 329417.94 49883.02 6.6

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  Interpretation:

The ratio shows the extent to which funds have been provided by long-term creditors as
compared to the funds provided by the owners.Here the Debt- Equity ratio for the above
period is always high.this shows that the bank is more relying on outside 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 total assets ratio or
equity ratio.It compares the shareholder’s funds to total assets.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 the protection
available to the creditors.Higher the ratio,lesser is the likelihood of insolvency in future,as the
management has to use lessor debts and vice versa.Thus,this ratio is of great importance to
the creditors.
Proprietory Ratio of ICICI Bank for the period of
2005-2009

0.14 0.13
0.12
0.12
0.1
0.08
Ratio

0.08 0.07 0.07 Proprietory Ratio

0.06
0.04
0.02
0
2005 2006 2007 2008 2009
Years

Years Shareholder's Funds Total Assets Proprietory Ratio

(Rs. In crores) (Rs. In crores)
2005 12899.97 167659.4 0.07
2006 22555.99 251388.95 0.08
2007 24663.26 344658.11 0.07
2008 46820.21 399795.07 0.12
2009 49883.02 379300.96 0.13

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  Interpretation:
Above table exhibits the proprietary ratio of the bank for last five years . It was 7% in
2005,After that was 8% in year 2006. Similarly it was once again reduced to 7 % in the year
2007. After 2007 it registered increase and was 12% and 13% in the year 2008 and 2009
respectively. Hence it leads to the conclusion owners 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 of fixed
assets.This ratio is a measure of efficient use of fixed assets.it is calculated as:

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 the 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 importance for manufacturing concerns where investment in fixed assets,is vey
high and the profitability is significantly dependent on the utilization of these assets .

Fixed assets Turnover Ratio of ICICI Bank for the

period of 2005-2009

9 8.17
8 7.49
7
5.86
6
Fixed assets Turnover
Ratio

5
4 3.46 Ratio
3 2.33
2
1
0
2005 2006 2007 2008 2009
Years

Year Sales Net Fixed Assets Fixed Assets

(Rs. In crores) (Rs. In crores) Turnover Ratio
2005 9409.9 4038.04 2.33
2006 13784.49 3980.72 3.46
2007 22994.29 3923.42 5.86
2008 30788.34 4108.89 7.49
.. 91
2009 31092.55 3801.62 8.17

 Interpretation:
Here the fixed assets employed in the business shows a decreasing trend except in the year 2008
where fixed assets have again increased.This may be due to increase 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.

CREDITDEPOSIT RATIO:
This ratio is very important to assess the credit performance of the bank. The ratio 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 banking institution.

Credits
Credit Deposit Ratio  Deposits 100

Credit means disbursement of advances

Deposit mean sum of fixed deposit,
Saving deposit and current deposit.

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Credit Deposit ratio of ICICI bank for the period of
2005-2009

1.05
0.99
1

0.95 0.92
Ratio

0.91
0.9
0.88
0.84 Credit Deposit ratio

0.85

0.8

0.75

2005 2006 2007 2008 2009

Years
Year Advances Deposits Credit Deposit Ratio (in%)
(Rs. In crores) (Rs. In crores)
2005 91405.15 99818.78 91
2006 146163.11 165083.17 88
2007 195865.6 230510.19 84
2008 225616.08 244431.05 92
2009 218310.85 218347.82 99

 Interpretation:

Above table exhibits credit deposit ratio of the bank during last 5 years. In the year 2005 ratio
was 91% and it declined to 88% and 84%in the year 2006 and 2007 respectively. In the year
2008 and 2009 ratio was increased to 92% and 99% respectively. it leads to conclusion that
credit performance of the bank is very good.

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 4. CASH FLOW STATEMENT OF ICICI BANK

2005 2006 2007 2008 2009

Profit before tax 2,527.20 3,096.61 3,648.04 5,056.10 5,116.97
Net cashflow-operating
activity 9,131.72 4,652.93 23,061.95 -11,631.15 -14,188.149
Net cash used in
investing activity -3,445.24 -7,893.98 -18,362.67 -17,561.11 3,857.88
Netcash used in fin.
activity -1,227.13 7,350.90 15,414.58 29,964.82 1,625.36
Net inc/dec in cash and
equivlnt 4,459.34 4,110.25 20,081.10 683.55 -8,074.57
Cash and equivalnt begin
of year 8,470.63 12,929.97 17,040.22 37,357.58 38,041.13
Cash and equivalnt end
of year 12,929.97 17,040.22 37,121.32 38,041.13 29,966.56

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Chapter 5

FINDINGS,SUGGESTIONS &
CONCLUSION
Findings
 profit earlier than tax for the yr ended March 31, 2009 (FY2009) was Rs. Five,117 crore
(US$ 1,009 million), in comparison to Rs. 5,056 crore (US$ 997 million) for the 12 months
ended March 31, 2008 (FY2008).

Earnings after tax for FY2009 was Rs. 3,758 crore (US $ 741 million) compared to Rs. 4,158
crore (US $ 820 million) for FY2008 because of the higher powerful tax price because of lower
share of earnings taxable as dividends and capital gains.

Net interest income multiplied 15% from Rs. 7,304 crore (US $ 1,440 million) for FY2008 to
Rs. 8,367 crore (US$ 1,650 million) for FY2009. Whilst the advances Declined marginally yr-
on-year, the internet interest earnings accelerated because of development in net interest margin
from 2.2% in FY2008 to two.four% in FY2009.

Running charges (which include direct advertising agency prices) reduced 14% to Rs. 6,835
crore (US$ 1,348 million) in FY2009 from Rs. 7,972 crore (US$ 1,572 million) in FY2008. The
price/average asset ratio for FY2009 was 1.8% in comparison to 2.2% for FY2008.

 at some stage in the yr, the bank has pursued a approach of prioritizing capital
conservation, liquidity control and danger containment given the tough economic environment.
This is reflected in the financial institution’s robust capital adequacy and its cognizance on
reducing its wholesale term deposit base and growing its CASA ratio. The bank is maintaining
excess liquidity on an ongoing basis. The bank has also placed strong emphasis on efficiency
development and cost clarification. The bank keeps to spend money on enlargement of its branch
network to decorate its deposit franchise and create an integrated distribution community for
both asset and liability products.

Consistent with the above approach, the full deposits of the bank have been Rs. 218,348 crore
(US$ forty three.0 billion) at March 31, 2009, compared to Rs. 244,431 crore (US$ 48.2 billion)
at March 31, 2008. The reduction in time period deposits by means of Rs. 24,970 crore (US$
four.9 billion) become frequently due to the bank’s aware strategy of paying off wholesale
deposits. At some point of q4-2009, total deposits elevated via Rs. Nine,283 crore (US $ 1.eight
billion), of which Rs. 5,286 crore (US$ 1.zero billion), or about fifty seven%, turned into inside
the form of CASA deposits. The CASA ratio improved to twenty-eight.7% of general deposits at
March 31, 2009 from 26.1% at March 31, 2008.

 The department community of the bank has multiplied from 755 branches at March 31,
2007 to 1,438 branches at April 24, 2009. The bank is also inside the system of beginning 580
new branches which might make bigger the department network to approximately 2,000
branches, giving the financial institution a huge distribution attain within the u . S . A ..

In step with the method of prioritizing capital conservation and chance containment, the loan e
book of the bank decreased marginally to Rs. 218,311 crore (US$ forty three.0 billion) at March
31, 2009 from Rs. 225,616 crore (US$ forty four.5 billion) at March 31, 2008.
 LIQUIDITY FUNCTION

The liquid ratio of the bank within the 12 months 2005,2006 and 2009 is 0.60,zero.67and zero.68
respectively and the year 2007 and 2008 liquid ratio is 0.97 and 0.88 respectively which is near
1.even though it isn't same to the appropriate liquid ratio of 1:1 but nevertheless its beneath
manage. So in nut shell, it may be concluded that the liquidity role of the bank is pretty first-rate.

 CAPITAL ADEQUACY AND GO BACK ON CAPITAL EMPLOYED

The bank’s capital adequacy at March 31, 2009 as consistent with Reserve bank of India’s
revised recommendations on Basel II norms become 15.5% and Tier-1 capital adequacy changed
into 11.eight%, properly above RBI’s requirement of overall capital adequacy of 9.0% and Tier-
1 capital adequacy of 6.zero%. The above capital adequacy takes into account the effect of
dividend endorsed with the aid of the Board.

Additionally the capital is being effectively applied in the bank as it indicates higher return on
capital employed over years.

 ASSET PLEASANT

At March 31, 2009, the financial institution’s net non-performing asset ratio changed into
1.ninety six%. Throughout the 12 months the bank restructured loans aggregating to Rs. 1,a
hundred and fifteen crore (US$ 220 million).

 DIVIDEND ON FAIRNESS STOCKS

For the reason that dividend per percentage has shown a promising increase for the period
underneath examine.It shows that the bank is following a sound dividend coverage and is
capable of dispensing higher dividends.on this manner the traders will sense investing in capital
of the bank a much useful choice and might be reluctant to withdraw capital for a long time.

 EARNINGS ACCORDING TO PERCENTAGE

The profits according to proportion for the period below have a look at additionally suggests a
promising growth.it shows that bank has better profitability function and in destiny it can be a
higher or appealing channel of investment for shareholders.

HIGHER TRAITS OF CREDIT SCORE DEPOSIT RATIO – A ADVANTAGEOUS

SIGN

Excessive traits of credit score deposit ratio well-knownshows that bank has achieved
satisfactorily as regard to granting loans and advances to generate income. It suggests that credit
performance is good and the bank is doing its business properly via pleasant its principal
objective with reference to granting loans and accepting deposits.
CONCLUSION
On the premise of various strategies implemented for the financial evaluation of ICICI financial
institution we can arrive at a conclusion that the economic function and usual performance of the
financial institution is great. although the income of the bank has elevated over the period but not
inside the same tempo as of fees. however the financial institution has succeeded in retaining a
reasonable profitability position.

The financial institution has succeeded in increasing its percentage capital additionally which has
improved round 50% inside the last five years. individuals are the principal shareholders. The
major success of the financial institution has been a great boom in its deposits, which has
constantly been its most important objective. constant and present day deposits have also shown
an increasing trend.

Equity shareholders are also taking part in an increasing trend in the go back on their capital.
Even though current belongings and liabilities (modern-day liquidity) of the bank isn't always so
first-rate however financial institution has succeeded in retaining a stable solvency role through
the years. As some distance because the ratio of external and internal equity is concerned, it is
clean that financial institution has been the usage of extra quantity of outside equity in the shape
of loans and borrowings than proprietor’s equity. Financial institution’s investments also are
showing an increasing fashion. Due to boom in advances, the interest received with the aid of the
financial institution from such advances is proving to be the major source of income for the
financial institution.
 

SUGGESTIONS
 Despite the fact that the short term liquidity position is pretty nice as consistent with
found out by way of liquid ratio however the present day ratio is beneath the perfect ratio of
two:1.So the bank should make efforts to growth its cutting-edge assets to preserve a safety
margin and to preserve a higher liquidity position.

 The profitability of the bank for the period underneath take a look at is not great.
Earnings are increasing but no longer with identical pace as of the expenditure due to higher
reliance on debt capital inside the form of borrowings and loans for financing capital structure.
So so as to enhance profitability, the financial institution should lessen its dependence on outside
equities for assembly capital necessities. Therefore, the hobby costs will decline and income will
increase which is ideal for the bank. Further non effective fees have to be curtailed to improve
profitability.

 Higher fashion of credit deposit ratio famous that the financial institution has carried out
satisfactorily as regard to granting loans and advances to generate earnings. It shows that the
credit performance of financial institution is right and it's far performing its business well via
pleasurable the most important objective of granting credit and accepting deposit. So so as to
have greater creditability in the market the financial institution must maintain its credit score
deposit ratio.

 Although the financial institution has been successful in increasing it’s deposits but to
further improve upon such scenario it can introduce some new and attractive schemes for public.
Such schemes may be inside the shape of better price of hobby and shorter adulthood length for
FD’s and many others.

 Bank ought to attempt to finance increasingly initiatives. Financing will help it to earn
better amount of profits.

 The financial institution is having a extra reliance on debt capital. The growing reliance
on external equities can also prove dangerous in the end. So so that you can treatment this
example bank should growth its consciousness on inner equities and other resources of inner
financing.

 Financial institution can also suppose for improving it’s day-to -day provider to its
customers. Such service may be improved with the aid of imparting spark off carrier and
showing an mindset of co-operation to its customers. It's going to help to give a form of self
belief to the public and construct a higher public picture.

 To gain the objective of Rural development it need to open increasingly branches in

exceptional rural regions of the country. It's going to facilitate in providing help to rural negative
farmers and other dwelling beneath the poverty line. Bank can appoint commission retailers for
specific region who can encourage trendy public to invest inside the capital of the bank and make
greater deposits in ICICI financial institution.

 The bank need to simplify the procedure of advances for brief disbursement.

 To achieve organizational achievement a proper impartial running environment need to

be developed to gain favored objective greater correctly.

 Last however now not least, financial institution need to undertake branch automation
experiment to govern the operational cost.
CHAPTER 6

BIBLIOGRAPHY
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

 Www.Managementparadise.Com