A Report on

Summer Project 2020

A Comparative study on marketing activities of
private and public sector bank.

Submitted by
ASHISH D. UDAWANT
2018-B-04042000C
B.Com SEM V
Batch 2018-21

Submitted to
DR. KAVITA CHORDIYA

Ajeenkya DY Patil University

November 2020

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 DECLARATION

I, Ashish Udawant, a student of B.com (Sem V) of the school

of Management in Ajeenkya DY Patil University. Hereby, I declare
that this report on Summer Project 2020 is the original piece of my work
and is based on secondary data of canara bank and icici bank.
I further declare that none of the contents of the report are copied from
any source. I understand that if found guilty of plagiarism, Ajeenkya
DY Patil University is free to initiate any action against me, including
the cancellation of my Summer Project.

Signature Of The Student: Ashish Udawant.

Date:06/11/2020

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 Index:

SR.no Particulars Page

no.
1. Introduction of private & public sector banks. 4-6
2. Introduction of marketing & communication
strategies. 7-15
3. Introduction of canara Bank. 16-18
4. SWOT analysis of canara Bank. 19-21
5. Introduction of icici bank. 22-23
6. SWOT Analysis of ICICI Bank. 24-25
7. Products and services provided by icici & canara
bank. 26-31
8. Ratio analysis of both banks. 32-47
9. Bibliography. 48

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 Introduction

What are public and private sector banks ?

• About public sector bank:

Public Sector Banks (PSBs) are a major type of bank in India, where a majority stake
(i.e. more than 50%) is held by the government. The shares of these banks are listed on stock
exchanges. There are a total of 12 Public Sector Banks alongside 1 state-owned Payments Bank
in India.
The Central Government entered the banking business with the nationalization of
the Imperial Bank of India in 1955. A 60% stake was taken by the Reserve Bank of India and the
new bank was named State Bank of India. The seven other state banks became subsidiaries of the
new bank in 1959 when the State Bank of India (Subsidiary Banks) Act, 1959 was passed by
the Union government.
The next major government intervention in banking took place on 19 July 1969 when
the Indira government nationalized an additional 14 major banks. The total deposits in the banks
nationalized in 1969 amounted to 50 crores. This move increased the presence of nationalized
banks in India, with 84% of the total branches coming under government control.
Public sector bank is a bank in which the government holds a major portion of the shares.
Say for example, SBI is public sector bank, the government holding in this bank is 58.60%.
Similarly PNB is a public sector bank, the government holds a stake of 58.87%. Usually, in
public sector banks, government holdings are more than 50 per cent.
Public sector banks are classified into two categories further-
1. Nationalized Banks 2. State Bank and its Associates.
In nationalized banks the government control and regulates the functioning of the banking
entity.
Some examples are SBI, PNB, BOB, OBC, Allahabad Bank etc. However, the government
keeps reducing the stake in PSU banks as and when they sell shares. So to that extent they can
also become minority shareholders in these banks.
These as their counterparts are listed on the Indian bourses.

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 • About private sector bank :
In these banks, most of the equity is owned by private bodies, corporations, institutions or
individuals rather than government. These banks are managed and controlled by private
promoters. Post-liberalization in the 1990s, banks such as ICICI, HDFC which got the license
are the new age Private sector banks. They owing to their improved service offerings give a
tough competition to the players in the public sector. Of the total banking industry in India,
Public sector banks constitute 72.9% share while the rest is covered by private players. In
terms of the number of banks, there are 27 public sector banks whereas 22 private sector
banks. As part of its differentiated banking regime, RBI, the apex banking body, has given
license to Payments Bank and Small Finance Banks or SFBs. This is an attempt to boost the
government's Financial Inclusion drive.

• The major differences between a private and public sector

bank:

• Shareholders:
a) In a public sector bank more than fifty percentage of the stake is held by the
Government.
b) In a private sector majority of the stake owned to private shareholders, including
corporations and individuals.

• Interest Rate : Deposit interest rates offered by public sector banks are almost the same
when compared to private sector banks. However new-age banks such as the Bandhan Bank,
Airtel Bank are offering marginally better interest rates when compared with their
counterparts In case of loans, interest rates are marginally lower as for example SBI
introduced a new home loan offering for its women customers with an interest rate of 8.35%
for a ticket size of upto Rs. 30 lakhs.

• Fees & Service: Private Sector Banks have made names in providing better service,
however, they charge for the extra services provided by them. Public sector banks fees and
charges are less such as on balance maintenance. A lot of public sector banks are still picking
up in their service offerings.

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• Customer Base: Mostly public sector accounts are opened for government employees for
their salaries, fixed deposits, lockers etc. Their customer base is also relatively large when
compared with their peers in the private sector as they have been in the domain for long and
have managed to gain customer's confidence. Whereas private sector bank in India target
company employees, for their salary accounts, credit cards and net banking.

Comparing financial performance of public and private sector banks:

In terms of financial performance, PSU banks lag behind. When comparing most of the
parameters like non-performing assets or NPA and net interest margins, private sector banks
tend to be much better placed. For example, some of the private sector banks like HDFC Bank
and IndusInd Bank have very low level of nonperforming assets, as compared to the public
sector or government owned banks. Some of the banks like Bank of Baroda from the
government or public sector have reported record losses. Losses from the steel sector has
aggravated the non-performing assets of the public sector banks in India. Share prices of these
banks is also on a higher side. On NPA front, to combat the issue of ballooning NPAs in the
public sector banks, an ordinance to amend the Banking Regulation Act has been cleared
which empowers RBI with more powers such that now banks are directed to take prompt
action against bad debts. Another important factor is that in terms of capital adequacy as well,
public sector banks are lagging behind, their private sector banking peers. Only recently the
government of India decided to infuse fresh capital in some of the government owned banks
such that they are solvent and at the same time are fully compliant with Basel III, global
capital adequacy norms. The recapitalization of the banks shall be done under the Center's
exclusive Indradhanush 2.0 scheme. An infusion to the tune of Rs. 10,000 crore is earmarked
for the sector in the F.Y 2017-18 and 2018-19. It is hoped that there would be some recovery
in the losses and the public sector banks would be able to compete with the private sector
banks in India.

Opportunity, Job Security and Other Benefits:

Public sector banks offer lesser opportunities but job prospects are bright here with job security as well
as pension benefits that are gained post-retirement. Excluding pension benefits, private sector banks do
offer other retirement benefits including gratuity.

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 Marketing Communication Strategies of Public and Private Sector
Banks:

Marketing Communication plying Vitol role in today’s competitive business environment. It

becomes mandatory for the banks to think seriously about how they can compete effectively with
other financial institutions. This has led them to pay due importance to marketing
communication strategies. Marketing Communication strategies perform two different functions
i.e. attract the deposits on one hand and attract the borrowers and users of services. In banking
sector marketing communication elements are especially important, they help to create powerful
images and a sense of credibility, confidence and assurance. Therefore it is essential to evaluate
all the elements of communication strategy that are used in banking service sector. The present
study evaluates and compares the effectiveness of marketing communication strategies in public
and private sector banks. The study assess the effectiveness of Advertising, Sales promotion
,Personal selling and Publicity and Public relations on the basis of five parameters i.e. providing
information, creating awareness , changing attitude ,creating Brand image and Brand loyalty.
The study is exploratory in nature and two banks namely ICICI & SBI in the private and public
sector respectively were selected with the target areas of Anantapur and Kadapa district of
Andrapradesh .A non-probability sampling technique was used comprising of 50 respondents
from each bank spread over two districts with 25 each. The sampling technique may be referred
as a simple convenience sampling. The respondent units were customers of both the banks
respectively. A well-structured questionnaire was prepared for the collection of necessary
primary data on different aspects of marketing communication strategies as adopted by the two
banks. A standard liker 5 point scale was used to measure the response of the selected customers
and was further subjected to tabulation and analysis. In order to draw logical and scientific
conclusions and inferences of the study necessary statistical tools are applied to arrive at the
findings.
Key words: Advertising, Sales promotion, Personal selling, Publicity and Public Relation,
Marketing Communication Strategies, ANOVA, Brand image, Brand loyalty.

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 Introduction of marketing strategies:

Company growth depends on effective marketing; Marketing depends heavily on an effective

communication flow between the company and the customers. Manufacturing a product and
making it available in the market is not only a part of the Company job. It is equally important to
make it known to the customers that the product is available in the market. In a competitive
market, where several firms are striving to win over customers, it is not enough if the availability
of a product or service only is made known to customers. It is also essential to propagate the
distinctive features specifications of the product. The process does not end here. The firm should
also get feedback on how the customers accept its products through an effective, continuous, and
two-way flow of information between the firm and the customers.
The firm attempts to communicate with the customer through quality assurance of the
products, colorful packages, written messages, pictures and symbols, attractive showrooms and
efficient salesmanship. When these various stimuli are received and interpreted by the customer,
marketing communication takes place. The communication also involves feedback from the
customer to the company, on how the total product offering of the company is received by the
customers in the market. Generally taking into account the nature of service industry, the
challenges it brings to the organizations and the need to follow holistic marketing approach to
effectively interact with customers highlights the importance and significance of marketing
communication activities. In service sector, marketing communication tools are especially
important to help create powerful images and a sense of credibility, confidence, and reassurance.

Indian banking sector historically passed through five stages:

1). pre-independence, 2). Post-independence, 3). Pre-nationalization, 4). Nationalization and 5).
Post-liberalization stages in all these stages, other than the last stage, marketing was always
considered not to be a banker’s cup of tea. But today it is considered to be an integral
management function in the banking sector. Banking is an industry that is built on trust.
Customers deposit their money with a bank only if they trust the bank and the bank gives loans
to the customers only when it trusts them. Banks do business with customers’ money by
accepting deposits from them and by giving loans on interest for any bank to conduct business;
initially it is the trust that matters, not the capital it owns.
Creating effective communication with the customers is the important aspect in service
marketing and therefore banking sector. One of the up’s of marketing mix promotion is also
known as marketing communication. Banks have to communicate with their existing customer as
well as potential customer about what they are doing and what they are planning to do in near
future. Marketing communication is very important and at the same time challenging in banking
sector as the nature of services is characterized by intangibility of service product which is
decision to convince customers on the value of the product. Marketing communication provide

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information that plays important role in adding value to a service product. Customers need
information about the features of services, its price, and the ways by which they can access those
services, to make a well informed purchase decision. Thus, if the customers are able to get the
necessary information about the service product on demand and adequately, they may feel that
they are buying quality product or service. This means having good and effective communication
adds value to the service of a company or organization as customers have the confidence on their
purchase.
Marketing communication techniques are especially important; they help to create powerful
images and a sense of credibility, confidence and assurance in the customers mind.

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MARKETING STRATEGIES USED IN BANKING SECTOR:

Advertising: -
Advertising plays a major role in promoting a bank’s products and services on a large scale.
However developing advertising campaigns for services is a difficult aspect because of the
intangible attribute of service. Banks should involve front line employee in designing the
advertising campaign as service personnel directly interact with customers during the process of
marketing. A bank can improve its brand image and brand equity with the help of advertising. It
also helps the bank in differentiating and positioning its services from those of competitors.

Sales Promotion: -
Sales promotion is often used by the companies to improve the sales of a product or service
either by encouraging the existing customers to use the service more frequently or by attracting
new customers to use their service. Banks also aim to pull customers to use their services by
attracting them with free offers, coupons, cash discounts, warranties; prizes etc.

Personal Selling:-
Due to the characteristics of banking services, personal selling is the way that most banks prefer
in expanding selling and usage of their services .It occurs in two ways. First occurs in a way that
customer and banker perform face to face interaction with each other a branch office. In this
process personnel, bank employees, chief and office manager, take part in selling. Second occurs
in a way that bank’s representative go to customer’s places. Bank’s representatives are specialist
in bank’s services and have update knowledge about the banks services to be offered and they
shape the relationship between bank and customer

Publicity and Public Relations (PR):-

Banks use publicity campaigns to bring in awareness about their offers among the existing and
potential customers .It involves using the information in a way that induces interest towards a
company, event or person. Public Relations in banking helps in:-1) Establishing most effective
communication system.2) Creating sympathy about relationship between bank and customer.3)
Giving broadest information about activities of bank.

Direct Marketing:-
Direct Marketing involves contacting the existing and potential customers directly through
telemarketing, direct mail, and online marketing (e-mail and official websites) without

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employing any intermediaries in the process. The customers of banking service need some
specific information or a customized change in the offering of the bank, so that the bank
personnel can best satisfy him while the intermediaries might not be in a position to respond to
customer’s satisfaction.

Word of mouth promotion:-

Very often communication about the banking services activity takes place by word of mouth
information which is also known as word of mouth promotion. In the banking industries we find
use of different components of promotion and word of mouth is one of the main source of
promotion a satisfied group of customers is considered to be the most successful hidden
promoters and if the bank keep on moving the process of satisfying the customers, the circle of
word of mouth promotion would keep on moving. This component of promotions is found
significant to the banking organizations and therefore bank professionals are required to seek the
cooperation of opinion leaders for the promotion.

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 Challenges of bank marketing:

Technology Marketing:
By private sector banks and foreign banks is more effective than public sector banks because
these banks are IT oriented. Private sector banks and foreign banks are attracting more customers
by providing e-services. Thus, technology has become a challenge before the public sector
banks.

Untrained Staff:
Often it happens that when a prospective customer approaches the branch, the employees seem
to have very little knowledge about the scheme. This reflects an ugly picture of our bank’s
image. Banks are not losing one prospective customer but 10 more customers who would be
touch of this man. Attitude of the employees towards customers is also not very well. Thus, it is
a need of time to reorient the staff.

Rural Marketing:
This is a big challenge before the Indian banks to enhance rural marketing to increase their
customers. Banks should open their branches not only in the urban and semi-urban areas but also
in the rural areas.

Trust of Customers:
Marketing can be enhanced only by increasing the customers. Customers can be increased or
attracted only by winning the trust of the customers.

Customer Awareness:
Customer awareness is also a challenge before the banks. Bank can market their products and
services by giving the proper knowledge about the product to customer or by awarding the
customer about the products. Bank should literate the customers. JM ACADEMY OF IT &
MANAGEMENT 40 Strategies for the enhancement of bank marketing in the fierce competitive
market, needs of customer keep changing. Hence, our marketing strategy must be dynamic and
flexible to meet the changing scenario. Here are steps that form successful and effective
marketing strategy for bank products.

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Emphasis on Deposits:
Emphasis, though in a discrete manner, should be given to mobilize more of term deposits as
they are more profitable for the bank in comparison to demand. Introduction of products
comparable to “Kisan Vikas Patra” of post office and product with the facility of tax rebate under
section 88 of Income Tax Act will of much help

Form a Saleable Product:

Scheme Bank should form a scheme that meets the needs of customers. A bunch of such
schemes can also form a product. A bank product may include deposit scheme, an account
offering more flexibilities, technically sound banking, tele/mobile/net banking, an innovative
scheme targeted to special group of customers like children, females, old aged persons,
businessman etc. In short, a bank product may consist of anything that you offer to customers.

Effective Branding Man:

Is a bundle of sentiments and emotions? This can effectively be helpful in branding our
products. Considering the features of products and target group of customers, the product can be
effectively branded so as to sound it catchy and appealing. Some proven examples are Apna
Ghar, Dhan Laxmi, Kuber, Flexi Deposit, Smart Kid, Sapney, Vidya etc. The branding should be
done in such a way that the brand name must attract the attention of customers. It should be easy
to remember. The target group and the silent feature of the product should resemble brand name.
This will help a lot in making the brand successful. All employees and all our campaigns should
refer the product by its brand name only so that to strike the same in the customer’s mind.

Products for Women:

The national perspective plan for women states that 94 pc of women workers are engaged in the
unorganized sector and 83 pc of these in agriculture and allied activities like dairy, animal
husbandry, sericulture, handloom, handcrafts and forestry. Banks should do something to
improve their access to credit which they require.

Customer Education:
There is a need to educate the customers on bank products. Efforts should be made to widen and
deepen the process of information flow for the benefit and education of Indian customers. Today,
the customers do not have any idea as to how much time is required for any type of banking
service. The rural customers are not aware for what purpose the loans are available and how they
can be availed. Customers do not know the complete rules, regulations and procedures of the

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bank and bankers preserve them for themselves and do not take interest in educating the
customers. It is a need to educate the customers from the grassroots of banking. It is time that
each bank branch takes steps to educate the customers on all banking function, which will
facilitate growth of banking on healthy lines both qualitatively and quantitatively.

Advertisement:
Advertisement is an eminent part of marketing of bank products. Advertisement should be such
that appeals to people. It should not follow the orthodox pattern of narrating a product. For
effective advertisement, bank should understand people’s tastes and choices.

Selling Products in Rural Areas :

For enhancing the marketing of their product, bank should sell their products in rural areas. For
it, there is a need to open branches in the rural areas.

Informing Customers about Products:

The bank should embark upon aggressive marketing of its products, particularly at the time of
launching a new product, which will inform the perspective customers regarding product and at
the same time relieve staff at branch level from explaining the product to all customers.

Customer Convenience In a service industry:

Like banking where product differential is hard to maintain and quality of service depends upon
the service provider, from whom it cannot be separated. So the bank employees have to render
services to the satisfaction of the customer, not as per their own conveniences or whims.

Re-orient Staff:
Sincerity of efforts in implementation of the measures is lacking among the bank staff. It is a
fact that its employees are not able to rise up to the expectations of its customers. They lack in
their behavior, attitude and efficiency. The phenomenon is glaring at urban centers. Therefore, it
calls for an immediate attention which is missing link in the entire process of marketing, and the
bank should undertake all such steps to motivate and reorient its staff.

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Sale of Products and Services:
Through E-delivery Channels after the Information Technology Act, many new e-delivery
products have been introduced. These e-delivery channels are very helpful in enhancing the
marketing of various products and services. Thus Indian banks should sale the products and
services through e-delivery channels.

Sale of Products and Services through Web-sites:

Internet is a network of network which connects the world. Thus, banks should sale their
products through web-site. This will enhance the marketing of the products not only at the
national but also at the international level.

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 INTRODUCTION OF BANK:

ESTABLISHMENT

Canara bank is one of the largest public sector banks owned by the government of
india.it is headquartered in Bengaluru. It was established at Mangalore in 1906 by
Ammembal Subba Rao Pai.

It is one of the oldest public sector banks in the country. The government
nationalized the ban in 1969. The tagline of Canara bank is “Together we can ‘’.

As of 31 March 2019, the bank had a network of 6310 branches and more than
8851 ATMs which are spread across 4467 centres. The bank also has offices abroad on
London, Hong Kong, Moscow, Shanghai, Dubai, Tanzania and New York.

One of the leading public sector commercial banks in India Among the top 5 public sector
banks in terms of assets as on March 31, 2016 as per the data published by Indian Banks’
Association One of the largest nationalized banks in India in terms of total advances and
deposits, which is Rs. 8,117.73 billion as of September 30, 2016 Engaged in a wide
variety of banking activities such as: Corporate Lending – Comprises a wide variety of
banking activities for large and medium corporations Priority Sector and Retail Sector
Lending – Provides funding to Priority & Retail sectors including loans to agriculture,
MSME, Housing & Education etc International Banking – Caters to the financial

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 requirements of Indian exporters and importers Other services – Includes services such as
asset management, factoring, bancassurance etc.

VISION OF CANARA BANK

The Canara bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. Canara banks business philosophy is based on four core
values such as;

1) Operational excellence.
2) Customer focus.
3) Product. 4) People.

MISSION OF CANARA BANK

1. World class Indian bank.
2. Benchmarking against international standards.

AIMS

The bank wishes to cater to all types to all types of needs of the family, in the whole
country. Its dream is “Together we can”.

ATTRIBUTES
Bank is convener of state level bankers committee. Bank offers depository services &
Demand facilities at 6310 branches. Bank has a tie up with LIC of India & United India
Insurance Company for Sale of Insurance policies. All the branches of the bank are fully
computerized.

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 BOARD OF DIRECTORS

Sr. Name Designation

No.
1 Mr. T N Manoharan Chairman

2 Mr. Matam Venkata Rao Executive Director

3 Mr. Debashish Mukherjee Executive Director

4 Mr. Manimekhalai Executive Director

5 Mr. Suchindra Mishra Government Nominee Director

6 Mr. R kesavan Nominee Director

7 Mr. Lingam Venkata Prabhakar Managing Director & CEO

8 Mr. S Raghunath Part Time Non-Official Director

9 Mr. Bimal Prasad Ramakrishna Ayer Shareholder Director

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 SWOT analysis of Canara Bank:

This helps in understanding the core areas of the business where it beats the competition and has
the competitive advantage in the market. Strengths are generally the core competency of the
business.

1. Strengths in the SWOT analysis of Canara Bank:

1. Schemes are innovative in nature –

The schemes introduced by the bank are very innovative in nature. It provides loans at a very
low rate for people living in the rural areas and hence helps in uplifting the living standard in
rural areas by helping farmers. It collaborated with UNEP so as to launch a scheme for solar
loans.

2. The banking style –

In comparison to other public banks in India Canara bank articulates the best practices and
creates a good banking experience for the customers which leads to the better brand image
in the minds of the customers.

3. Employment Generation –

The banks employ more than 40000 people in India and hence generates employment for
the huge amount of people.

2. Weaknesses in the SWOT analysis of Canara Bank:

This is the pain area of the organization where it does not have the resources or skills. Business
has to work upon these areas so that they are not left behind from the competition. Though there
will be some or the other weakness but it should not be an area which takes the business out of
the market.

1. Schemes are innovative in nature –

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 The schemes introduced by the bank are very innovative in nature. It provides loans at a
very low rate for people living in the rural areas and hence helps in uplifting the living
standard in rural areas by helping farmers. It collaborated with UNEP so as to launch a
scheme for solar loans.

2. The banking style –

In comparison to other public banks in India Canara bank articulates the best practices and
creates a good banking experience for the customers which leads to the better brand image
in the minds of the customers.

3. Employment Generation –
The banks employ more than 40000 people in India and hence generates employment for
the huge amount of people.

3. Opportunities in the SWOT analysis of Canara Bank:

This helps in understanding what other things a business can do with the current skills and
resources. It helps the business to know the areas where it can expand and take a lead in
order to diversify the business and expand the customer base.

1. Rural Banking –

The bank can explore more aspects of rural banking as the majority of Indians are living in
the rural areas and hence by fulfilling their banking needs the bank can grow its revenue.

2. Social Banking –
In the era of social media the banks are adopting social channels and hence catering to the
needs of customers using an additional challenge and saving their time to visit physical
banks.

4. Threats in the SWOT analysis of Canara Bank:

This analysis helps in understanding what are the areas which can impact the business in future
or right away. So, business has to prepare itself to handle the threats in the market landscape.
Competition or increasing number of players in the market with same value proposition is a
threat to business as it directly lowers down the customer base and revenue.

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1. Competition is Increasing from Private Sector Banks –
Private sector banks are coming up with innovative investment schemes and hence taking the share
of retail customers.

2. Economic Crisis –
Due to the economic crisis the customers are not saving money in the banks and
hence this reduces the liquidity of banks and they cannot operate smoothly due to
lack of cash.
3. Changing Policies – Banking policies are subject to the rules and regulation of RBI and
hence any changes from RBI has a direct impact on the operations of the bank.

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 Introduction to ICICI Bank-

Establishment:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly–owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all–stock amalgamation in fiscal 2001, and secondary market sales by
ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at
the initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium–term and long–term project financing to Indian businesses. In the 1990s,
ICICI transformed its business from a development financial institution offering only project
finance to a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In
1999, ICICI become the first Indian company and the first bank or financial institution from
non–Japan Asia to be listed on the NYSE.
ICICI Bank is a leading private sector bank in India. The Bank’s consolidated total
assets stood at Rs.12.50 trillion at June 30, 2019. ICICI Bank currently has a network of
5,275 branches and 15,589 ATMs across India. ICICI was originally promoted in 1994 by
ICICI Limited by indian financial institution, and was it holly on subsidiary.Bank

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

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 Mission:

ICICI will leverage our people, technology, speed and financial capital to: be the banker of the first
choice for our customers by delivering high quality, world-class products, and services.

BOARDS OF DIRECTOR:

SR. Name Designation

NO
1. Garish Chandra Chaturvedi Banking, Economics, Business Management and Agriculture
Sector
2. Rama Bijapurkar Business Management and Marketing
3. Uday Chitale Accounts, Finance and Alternate Dispute Resolution (ADR)
Specialist
4. Neelam Dhawan Information Technology
5. S. Madhavan Accountancy, Economics, Finance, Law, Information
Technology, Human Resources, Risk Management, Business
Management
6. Hari L. Mundra Credit and Consumer Finance
7. Radhakrishnan Nair Accountancy, Agriculture and Rural Economy, Banking,
Law, Co-operation, Risk Management, Business
Management Economics & Finance
8. B. Sriram Banking and Finance
9. Lalit Kumar Chandel Banking, Insurance, Capital Markets, External Assistance,
Agriculture and Rural Development, Power, Irrigation and
Health
10. Sandeep Bakhshi Finance, Banking and Insurance
11. Vishakha Mulye Finance and Banking
12. Anup Bagchi Retail & Rural and Inclusive Banking

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 • SWOT Analysis of ICICI Bank

1. Strengths of ICICI Bank:

This helps in understanding the core areas of the business where it beats the competition and
has the competitive advantage in the market. Strengths are generally the core competency of
the business.

• ICICI is the second largest bank in terms of total assets and market share.
• Total assets of ICICI is Rs. 4062.34 Billion and recorded a maximum profit after tax of Rs.
51.51 billion and located in 19 countries.
• One of the major strength of ICICI bank according to financial analysts is its strong and
transparent balance sheet.
• ICICI bank has first mover advantage in many of the banking and financial services. ICICI
bank is the first bank in India to introduce complete mobile banking solutions and jewelry
card.
• The bank has PAN India presence of around 2,567 branches and 8003 ATM’s.
• ICICI bank is the first bank in India to attach life style benefits to banking services for
exclusive purchases and tie-ups with best brands in the industry such as Nakshatra, Asmi,
D’damas etc.
• ICICI bank has the longest working hours and additional services offering at ATM’s which
attracts customers.
• Marketing and advertising strategies of ICICI have good reach compared to other banks in
India.

2. Weaknesses in ICICI Bank:

This is the pain area of the organization where it does not have the resources or skills.
Business has to work upon these areas so that they are not left behind from the competition.
Though there will be some or the other weakness but it should not be an area which takes
the business out of the market.

• Customer support of ICICI section is not performing well in terms of resolving complaints.
• There are lot of consumer complaints filed against ICICI.
• The ICICI bank has the most stringent policies in terms of recovering the debts and loans,
and credit payments. They employ third party agency to handle recovery management.
• There are also complaints of customer assault and abuse while recovering and the credit
payment reminders are sent even before the deadlines which annoys the customers.
• The bank service charges are comparatively higher.
• The employees of ICICI are bank in maximum stress because of the aggressive policies of
the management to win ahead in the race. This may result in less productivity in future years.

[24]
3. Opportunities in the SWOT analysis of ICICI Bank:
This helps in understanding what other things a business can do with the current skills and
resources. It helps the business to know the areas where it can expand and take a lead in order to
diversify the business and expand the customer base.

• Banking sector is expected to grow at a rate of 17% in the next three years.
• The concept of saving in banks and investing in financial products is increasing in rural areas
as more than 62% percentage of India’s population is still in rural areas.
• As per 2010 data in TOI, the total number b-schools in India are more than 1500. This can
ensure regular supply of trained human power in financial products and banking services.
• Within next four years ICICI bank is planning to open 1500 new branches.
• Small and non performing banks can be acquired by ICICI because of its financial strength.
• ICICI bank is expected to have 20% credit growth in the coming years.
• ICICI bank has the minimum amount of non-performing assets.

4. Threats in the SWOT analysis of ICICI Bank:

This analysis helps in understanding what are the areas which can impact the business in future
or right away. So, business has to prepare itself to handle the threats in the market landscape.
Competition or increasing number of players in the market with same value proposition is a
threat to business as it directly lowers down the customer base and revenue.

• RBI allowed foreign banks to invest up to 74% in Indian banking.

• Government sector banks are in urge of modernizing the capacities to ensure the customers
switching to new age banks are minimized.
• HDFC is the major competitor for ICICI, and other upcoming banks
like AXIS, HSBC impose a major threat.
• In rural areas the micro financing groups hold a major share.
• Though customer acquisition is high on one side, the unsatisfied customers are increasing
and make them to switch to other banks.

[25]
 PRODUCTS AND SERVICES PROVIDED BY BOTH
PRIVATE AND PUBLIC SECTOR BANKS:
Banks apart from carrying out general banking functions, offers specialized products and
services to suit different segment of customers. It categorizes the major functions under four
broad areas:

i. Personal Banking
ii. Corporate Banking
iii. NRI Banking
iv. Priority and SME credit

1. Personal Banking: Under personal banking, bank offers various deposit schemes, loan
products, technology products, mutual funds, insurance business, international services,
card services, consultancy services, depository services and ancillary services for the
benefit of the individuals, joint accounts, minor accounts, HUF, non-corporate bodies,
clubs, societies, associations, schools, trusts, executives/ administrators, government
bodies and semi-government departments.
2. Deposit Schemes: Deposit schemes include savings bank accounts, current accounts,
fixed deposits, recurring deposits and special deposit schemes. Special deposits schemes
comprises of champ deposit scheme, savings scheme, Ashraya deposit scheme for senior
citizens, tax saver scheme, auto renewal deposit and SB gold scheme. A Champ Deposit
Scheme is basically a saving bank deposit for children upto the age of 12 years. The
special feature of this scheme is the provision of loan eligibility card for educational loans.
saral savings scheme is a savings bank product designed for the common man to provide a
basic banking facility as part of the financial inclusion objective of the RBI. Ashraya
deposit scheme extended by the bank is for the benefit of senior citizens. Tax saver
scheme is designed for salaried class, businessmen, professionals who come under the
ambit of tax payers. The amount deposited under this scheme can be deducted under
section 80C of the Income Tax Act 1961. The auto renewal deposit is a term deposit
scheme which has built in features for automatic renewal of the deposit and the SB gold
scheme is a special scheme under which value added facilities at free of cost can be
availed provided a prescribed minimum balance on an average is maintained in the
savings bank account

3. Loan Products: Loan products include housing loan, can mobile vehicle loan, can
pension loan for senior citizens, can rent, reverse mortgage loan scheme for the senior

[26]
 citizens, home improvement loan, can site, teachers loan, can mortgage, doctor’s choice,
can cash, can budget, swarna loan and can guide. Housing loan is provided for the
construction, purchase, repairs, additions, renovations of residential house or flat
including the purchase of land and construction thereon to salaried individuals, individuals
engaged in business, professionals, self-employed persons and NRIs. Can Mobile is a
vehicle loan given to the salaried persons, professionals and business people with
qualifying income and required repayment capacity for buying new or used four wheeler
or two wheeler. Can pension scheme is especially for the pensioners who draw pension
through the Bank branches to meet the cost of medical expenses and other genuine needs.
Home improvement loan is a scheme which provides a packaged financial assistance to
the individuals for furnishing their houses or flats. Can Site loan scheme is available to the
individuals for the purchase of housing sites from the state development/town planning
development authorities, central and state governments, local authorities either exclusively
or in partnership with private sector entities provided such layouts are duly approved by
the concerned statutory authority. Canmortgage loan can be availed by professionals,
businessmen, salaried persons and those customers having satisfactory dealings with the
Bank for meeting genuine needs by mortgaging the property. Swarna Loan is provided to
credit worthy savings bank account holders with satisfactory dealings against gold
jewellary.
4. Technological Products: Information technology influences, activates and controls every
action of the business world. In the banking sector which is a customer-centric,
introduction of information technology has become inevitable not only for providing
quality timely service but for cost saving. Core banking solution is a combination of
application software and network devices which facilitates anywhere banking and anytime
banking. Through core banking solution, a branch customer is converted into a bank
customer. With further advancements in information technology and telecommunications,
banks are able to offer e-banking services. Through electronic delivery channel like
computers, telephones, mobile phones, ATMs etc., bankers could provide products and
services directly to the customers. Bank issues ATM-cum-Debit cards to the individuals as
well as to the joint account holders. It facilitates the customers to transact through bank
ATMs and other bank ATMs, purchase of goods and services to the limit of Rs.20,000/-
per day, mobile top-up, VISA money transfer and e-ticketing. Read Time Gross
Settlement (RTGS) is an electronic payment system in which large value funds are
transferred from one bank to another on a real time basis .National Electronic Funds
Transfer (NEFT) is another electronic payment system in which a small value funds are
also transferred from one bank to another at fixed intervals. Internet Banking involves the
use of internet for the delivery of banking products and services. It facilitates the
customers to have 24 hours access to the account and information regarding banking
products and services. It facilitates payment of the bills for the services such as telecom,
electricity, cable and internet service providers, insurance, donations and charity, mutual
funds, travel and ticketing, loan repayments, online tax, credit card and online shopping.
5. Mutual Fund: Bank entered into the field of mutual funds by establishing bank Mutual
Fund in December 1987. Subsequently in 2007, it is consistently growing by offering a

[27]
 range of investment options including diversified and thematic equity schemes, hybrid and
monthly income funds and a wide range of debt and treasury products.
6. Insurance Business: i. Bancassurance (Non-life) Banks has tied up with the United
India Insurance Company Limited as a corporate agent for the distribution of general
insurance products without any risk participation. ii. Bancassurance (Life) Canara Bank
has started a joint-venture Insurance Company namely Canara HSBC Oriental Bank of
Commerce Life Insurance Company Limited. In the share capital, Canara Bank has a
stake of 51%, HSBC Insurance (Asia Pacific) Holdings Limited 26% and oriental Bank of
Commerce 23%. Further, Canara Bank acts as a corporate agent for this joint-venture
company.
7. International Services Banks has an excellent worldwide correspondent relationship
and has the capability to handle any export, import, remittance and related transactions
anywhere in the world and in any currency. Non-fund based transactions like adding
confirmations to Letter of Credit (LC), issuing inward and outward bid bonds and
guarantees, establishing letter of credit for import into India, arranging buyer’s credit at
attractive terms etc. are also the part of the services offered by the Bank
8. Card Services: The principal member of VISA worldwide and MasterCard Inc. Global
Credit Cards enjoy the privilege of worldwide acceptance and free insurance coverage.
9. Consultancy Services: Banks offers specialized services to its individual customers
like executor, trustee, personal tax assistance and investment counselling, taxation and
attorney ship and to the corporate sector like debenture trustee services and security
trustee services.
10. Ancillary Services: Banks offers various other services which are non-banking in
nature and general utility services like retail sale of gold coins, safe deposit lockers
facility, safe custody services, provision of nomination facility, 7 days banking at select
branches, extended banking hours etc.

• Corporate Banking-
Under corporate banking, Banks offers various products and schemes especially for the traders,
businessmen and corporate bodies, etc. Accounts and Deposits, cash management services, Term
Loans, Gold card Scheme for Exporters, working capital finance, infrastructure financing, Export
Finance Schemes, syndication services, IPO monitoring activity, merchant banking services,
Technology Up gradation Fund Schemes (TUF Schemes), e-Tax, etc., are the products and
schemes designed to suit the requirements of the traders, businessmen and corporate bodies.

[28]
1. Cash Management:
Services it is an innovative service offered by Bank for the speedy collection of cheques and
other instruments, places corporate on a fastertrack. Agents or offices of corporate can
deposit their bulk instruments of small value to be cleared in the local clearing and instruct
the bank to post the funds at any one designated branch under bulk collection service.
2. Term Loan:
Banks offers term loan for both the industrial and non-industrial borrowers i.e. both for the
projects/activities involved in manufacturing/ processing/repairing and business/trading
activities etc. Term loan is extended in different form such as all rupee loans, foreign
currency loans and deferred payment guarantees.
3. Gold Card:
Scheme for Exporters Under this scheme, eligible exporters depending upon their track
record and credit worthiness are granted better terms of export credit.
4. Working Capital:
Finance Working Capital finance is extended by the Canara Bank in different forms based
on the requirement in the form of inventory limits (pre-sales), finance against receivables
(post-sales), non-fund based limits and short term lending products.
5. Infrastructure Fund:
Banks under consortium arrangement with term lending financial institutions and other banks
extends finance to the various infrastructure projects.

6. Export Finance Schemes:

Banks offers pre-shipment finance, post-shipment finance, foreign bank guarantee and
foreign letters of credit to the units which undertake or desirous of undertaking export
business
7. Syndication Services:
It is a new value added fee based service of the Banks for the corporate customers. The
service shall be either on “best efforts” basis or on “underwriting” basis.
8. Merchant Banking Services: Bank is a SEBI registered category 1 merchant banker to
render issue management, underwriting, consultancy and corporate advisory services etc. to
the banks, PSUs, state owned corporations, local statutory bodies and corporate sector.
9. Technology Upgradation Fund Schemes (TUF Schemes):
Banks has been appointed as a nodal agency for implementation of the technology up
gradation scheme of i. Ministry of Textiles ii. Ministry of Micro Small Medium
Entrepreneurs iii. Ministry of Food Processing Industries IV. Ministry of Consumer Affairs,
Food and Public Distribution The scheme is available for modernization/expansion of
existing units and for setting up of new units with bench mark level of technology in textile
and jute industry

[29]
10.e-Tax:
Banks provides the facility to pay the Direct Taxes, the Excise and Service Tax and the
Customs payment through internet to its customers.

• NRI Banking:

Specialized products and services are provided to the non-resident customers apart from
NRI deposits, NRI loans and advances like NRI remittance facilities, NRI consultancy
and NRI other services including safe custody, nomination facility, safe deposit lockers,
attorney ship services, NRI service centers and facilities for returning Indians.

1. Priority and SME Credit:

Banks takes special efforts to finance small scale industry, small business, agricultural
activities and export activities by providing various schemes and products under Priority
and SME credit. Priority and SME credit comprises of various products and services
particularly offered to suit the requirements of each and every wing of priority sector.
The various schemes and products under Priority and SME credit are,

2. Priority Credit

(i) Agriculture and Rural Credit Scheme Kissan credit card, loans for agri clinics/ agri
business centre, minor irrigation/ pump set loan, farm machinery loans, farm
development loans, vehicle loan for agriculturists, loan for plantation crops, loan for
marine fisheries, loan for sericulture, loan for poultry and duck rearing, loan for cold
storage and rural godown, drip/sprinkle irrigation loans, dairy loan and raising cross
breed heifers, loan for construction of farm structures, Kisan suvidha, General Credit
Card Scheme (GCCS Kisan OD, Krishi mitra card scheme, Kisan tatkal and gold loans
for agricultural purposes.
(ii) Education loan and other priority sector loans: Education loan for the students, Laghu
Udyami Credit Card Schemes (for small business units, retail traders, artisans, village
industries, SSIs and tiny units, P&SE and small entrepreneurs), loan for solar water
heating systems, direct financing to SHGs, lending to Micro Credit Groups, Finance to
NGOs for on-lending to SHGs etc.
(iii) Government Sponsored Schemes There are two government sponsored schemes namely
Swarna Jayanthi Shahari Rozgar Yojana (SJSRY) -Urban self-employment programme
and Swarna Jayanthi Gran Swarnozgar Yojana (SGSY) -Rural self-employment venture.

[30]
3. SME Credit Loan:

Products to the Micro, Small and Medium enterprises under the Government of India
schemes, schemes for capital investment, working capital, composite requirements etc., are
provided.

4. SME Marketing:

The Banks SME Sulabh, a dedicated SME marketing team spreading across 15 centers in the
country, choosing the right product to match the credit needs, facilitates the documentation
procedures, assets in project appraisal and helps in adding value to the supply chain Banks is
the front runner in providing various products and schemes aimed to uplift poor, educated
unemployed / under employed people in rural/semi-urban/ urban areas, agriculturalists, small
and medium entrepreneurs and weaker sections under priority sector thereby participating in
the process of economic development in India

5. Agri-Business Marketing Unit :

The Banks with Agri-Business Marketing Managers (ABMMS) spread across 15 major
locations in India, catering to the needs of farmers/agri-preneurs with specific attention on
the agri-business growth centres, by providing products and services to finance the entire
supply chain of the agri-business.

6. Agricultural Consultancy Services (ACS):

Agricultural Consultancy Services is an exclusive division of Banks and is the first ever
consultancy cell for agriculture and allied activities in the entire banking sector in India. It is
today, one stop-shop for entrepreneurs looking for investment in agriculture and related
projects.

7. Centre for Entrepreneurs Development (CED):

Banks for Women CED for women of Banks caters to all training needs of women to become
an entrepreneur.

[31]
 RATIO ANALYSIS & INTERPRETATION OF CANARA
BANK:

Objective of Ratio analysis:

1. To study the products and services in CANARA Bank.
2. To analyses the financial statements of the corporation to assess its true financial position by
the use of ratios.
3. To find out the recent Trend through the analysis of CANARA Bank.
4. To suggest some of the measures to CANARA Bank for future development.

Limitation of Study:
1. Difficulty in data collection.
2. The analysis and interpretation are based on secondary data contained in the published
annual reports of CANARA Bank for the study period.
3. Inter firm comparison was not possible due to the non-availability of competitor’s data.
4. The study of financial performance can be only a means to know about the financial
condition of the company and cannot show a through picture of the activities of the company.

[32]
 Analysis and Interpretation:

Particular 2012-2013 2013-2014 2014-2015 2015-2016

s
Absolut % of Absolut % of Absolut % of Absolute % of
e change chang e change chang e change chang change chang
e e e e
Capital 153.08 14 9.51 0.8 213.34 17 0.61 .04
Reserves
21943.6
and 9502.96 80 2097.76 10 94 3062.2 7
1
surplus
Deposits 65264.3 65 65427.0 40 13920.8 6 (26083.23 (11)
9 2 6 )
Borrowing 4977.41 15 12734.1 33 14392.4 28 1675.26 25
s 2
Other
Liabliites 3831.71 18 13000.7 51.5 4666.75 12 851.04 2
and 6
Provisions

Total
Capital 83729.5 50 93269.1 37 55136 16 (20494.12 (5.1)
and 5 7 )
Liablities
Assets
Investment 21060.0 42 19710.4 27.5 20196 22 (8396.03) (7.5)
4 5
Advances 54757.9 60 49702.4 34 29750.4 15 (7305.23) (3.25)
6 9 8
Fixed
(57.32) (1.4) (57.3) (1.4) 185.47 5 (307.27) (7.5)
Assets
Capital
Work in 51.64 54 41.72 28.2 (189.66) -100 0.00 0.00
Progress
Current
7917.23 37 23871.8 81 5194.17 10 (4485.58) (8)
Assets
Total 83729.5 50 93269.1 37 55136.9 16 (20494.11 (5.1)
Assets 5 6 6 )

[33]
Interpretation

• The capital of bank increased by 14% in 2012-13, 0.8% in 200613-14, 17% in 2014-15,
and 0.04 % in 2015-16. This shows that there is fluctuation in the rate of increase in the
capital.
• In 2012-13 and 2014-15 the rate of increase in capital is more than that of 2013-14 and
2015-16.
• There is a huge fluctuation in the rate of increase in reserves and surplus also. This shows
that bank is effectively utilizing its reserves and surplus.
• In 2012-13 deposits increase by 65%, in 2013-14 it increased by 40% and an increase of
6% in 2014-15. In 2015-16 deposits fall by 11%. This shows that the bank has replayed its
deposits in this year.
• The borrowings are also showing a fluctuating rate of increase.in2015-16 the borrowings
have increased at a very low rate. This shows that bank has repaid a large amount of
borrowings in this year and thereby reducing the dependence on outside debt The
investments are also increasing but with lower rates compared to the preceding years.
• Similarly advances rose by 60% in 2012-13, an increase of 34% in 2013-14, 15% increase
in 2014-15 and finally decreased by 3.25% in 2015-16.
• There has been a consistent decline in the fixed assets over years in 2012-13 and 2013-14
it decreased by 1.4%, increased by5% in 2014-15 and again decreasing by 7.5% in 201516
this is mainly due to increase in the rate of depreciation in the subsequent years.
• A huge fluctuation is revealed from current assets. It increased by 37% in 2012-13, rate of
increase rose to 80% in 2013-14 and then the it increased at a much lower rate i.e. at 10%.
This shows that the bank is effectively utilizing its working capital. There is a fall in current
assets in 2015-16 by 8 %. This is mainly due to their payment of deposits in the years 2015-
16.

[34]
 Trend Analysis:

Trend Percentage of Canara Bank from 2012-2013 to 2015-2016

Particulars 2012 2013 2014 2015 2016

Deposits 100 165 231 245 219
Advances 100 160 214 247 239
Net profit 100 127 155 207 187

Interpretation

• There is a continuous increase in the deposits till the year ending 2015 followed by a down
fall in the year ending 2016 due to repayment of deposits in this year.
• Similarly advances also shows as increasing trend till the year ending 2015 followed by a
slight downfall in the year ending 2016.
• There has been a substantial increase in net profit till the year ending 2015.In four years it
has been more than double.
• The overall performance of the bank is satisfactory.

[35]
 CURRENT RATIO:

Current Ratio of CANARA BANK for the Period of 2012 – 2016.

Year Current Assets Current Liabilities Current Ratio

2012 21632.56 21396.16 1.01
2013 29549.79 25227.88 1.17
2014 53421.59 38228.64 1.39
2015 58615.76 42895.38 1.36

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 has current assets just equal to the current liabilities which are not
satisfactory as the safety margin is very less or zero. Therefore, the bank should keep more
current assets so that it can maintain a satisfactory safety margin.

[36]
 LIQUID RATIO:

Liquid Ratio of CANARA BANK for the period of 2012 – 2016

Year Quick Assets Current Liabilities Current Ratio

2012 12929.97 21396.16 0.6
2013 17040.22 25227.88 0.67
2014 37121.33 38228.64 0.97
2015 38041.13 42895.38 0.88

Interpretation

A quick ratio of 1:1 is considered favorable because for every rupee of current liability, there is
at least one rupee of liquid assets. A higher value of ratio is considered favorable. Here this ratio
is less than 1 in 2012, 2013 & 2016 but in 2014 & 2015 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 utilize its funds to maintain an ideal liquid ratio.

[37]
 NET PROFIT RATIO:

Net Profit Ratio of CANARA BANK for the period of 2012-2016.

Year Net Profit Sales Net Profit Ratio

2012 2005.2 9409.9 21.3
2013 2540.07 13784.49 18.42
2014 3110..22 22994.29 13.52
2015 4157.73 30788.34 13.5
2016 3758.13 31092.55 12.08

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.

[38]
 OPERATING PROFIT RATIO:
Operating Profit Ratio of CANARA BANK for the period of 2012 – 2016

Year operating Profit Sales operating Ratio

2012 2956 9409.9 31.41
2013 4690.67 13784.49 34.02
2014 5874.4 22994.29 25.54
2015 7960.69 30788.34 25.85
2016 8925.23 31092.55 28.7

Interpretation:
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 and
should check on unnecessary operating expenses to correct this situation and to provide a
sufficient return.

Suggestions:
Although the short term liquidity position is quite satisfactory as per revealed by liquid ratio but
the current ratio is below the ideal ratio of 2:1. So the bank should make efforts to increase its
current assets to maintain a safety margin and to maintain a better liquidity position.
• The profitability of the bank for the period under study is not satisfactory. Profits are
increasing but not with same pace as of the expenditure due to higher reliance on debt
capital in the form of borrowings and loans for financing capital structure. So in order to
improve profitability, the bank should reduce its dependence on external equities for
meeting capital requirements. Consequently, the interest expenses will decline and profits
will increase which is good for the bank. Similarly, non-productive expenses should be
curtailed to improve profitability.
• Higher trend of credit deposit ratio reveals that the bank has performed satisfactorily as
regard to granting loans and advances to generate income. It suggests that the credit
performance of bank is good and it is performing its business well by fulfilling the major
objective of granting credit and accepting deposit. So in order to have more creditability in
the market the bank should maintain its credit deposit ratio.

[39]
• Though the bank has been successful in increasing its deposits but to further improve upon
such situation it can introduce some new and attractive schemes for public. Such schemes
can be in the form of higher rate of interest and shorter maturity period for FD‟ s etc.
• Bank should try to finance more and more projects. Financing will help it to earn higher
amount of profits.
• The bank is having a greater reliance on debt capital. The increasing reliance on external
equities may prove hazardous in the long run. So in order to remedy this situation bank
should increase its focus on internal equities and other sources of internal financing.
• Bank can also think for improving its day-to -day service to its clients. Such service can be
improved by providing prompt service and showing an attitude of co-operation to its
clients. It will help to give a kind of confidence to the public and build a better public
image.
• To achieve the objective of rural development it should open more and more branches in
different rural areas of the country. It will facilitate in providing help to rural poor farmers
and other living below the poverty line. Bank can appoint commission agents for different
area who can encourage general public to invest in the capital of the bank and make more
deposits in CANARA Bank.
• The bank should simplify the procedure of advances for quick disbursement.
• To achieve organizational success a proper independent working atmosphere should be
developed to achieve desired objective more effectively.
• Last but not least, bank should adopt branch automation experiment to control the
operational cost.

Conclusion

• On the basis of various techniques applied for the financial analysis of CANARA
Bank we can arrive at a conclusion that the financial position and overall performance of

[40]
the bank is satisfactory. Though the income of the bank has increased over the period but
not in the same pace as of expenses. But the bank has succeeded in maintaining a
reasonable profitability position. The bank has succeeded in increasing its share capital
also which has increased around 50%in the last 5 years. Individuals are the major
shareholders. The major achievement of the bank has been a tremendous increase in its
deposits, which has always been its main objective.

• Fixed and current deposits have also shown an increasing trend. Equity
shareholders are also enjoying an increasing trend in the return on their capital. Though
current assets and liabilities (current liquidity) of the bank is not so satisfactory but bank
has succeeded in maintaining a stable solvency position over the years. As far as the ratio
of external and internal equity is concerned; it is clear that bank has been using more
amount of external equity in the form of loans and borrowings than owner’s equity.
Bank’s investments are also showing an increasing trend. Due to increase in advances,
the interest received by the bank from such advances is proving to be the major source of
income for the bank.

[41]
 RATIO ANALYSIS & INTERPRETATION OF ICICI BANK:

OBJECTIVES:

• To find out the Capital adequacy, Asset quality, Management efficiency, Earnings and
Liquidity of the ICICI bank.
• To analyse the financial performance of ICICI bank using CAMEL rating system.

SCOPE OF THE STUDY :

• The study of financial performance helps to understand the overall profitability position,
liquidity position and long term financial performance of the ICICI banks.
• This study helps to evaluate ICICI bank and suggest to their investors.

LIMITATIONS OF THE STUDY:

• The study depends upon the secondary data collected i.e. various kinds of reports of the
ICICI bank.
• The period of study is limited to five years only
• Difficulty in data collection.

[42]
 PERIOD OF STUDY
The study covers the four years period from 2014 to 2018.

ANALYSIS AND INTERPRETATION

CAPITAL ADEQUACY RATIOS:

Ratios
2018 2017 2016 2015 2014
Capital Adequacy Ratios
17.02 17.70 18.74 18.52 19.54
Debt Equity Ratio
4.50 4.53 4.39 4.23 4.10
Advances to asset ratio
59.97 56.96 54.07 53.57 53.26
Government Securities to total
investments 57.56 54.17 54.28 54.77 48.27

Interpretation:
It is found that ICICI Capital adequacy ratio was highest in the year 2016, Debt equity ratio was
highest in the year 2017, Advance to asset ratio was highest in the year 2018 and Government
Securities to total investments was highest in the year 2018 .

[43]
 ASSETS QUALITY RATIOS:

Ratios
2018 2017 2016 2015 2014
Net NPA to total advances ratio
1.61 0.97 0.77 0.73 1.11
Total investments to total assets ratio
28.87 29.76 31.92 33.68 33.15
Net NPA to total assets ratio
0.99 0.55 0.41 0.39 0.59

Interpretation:
it is found that ICICI Net NPA to total advances ratio was highest in the year 2018, Total investments to
total assets ratio was highest in the year 2015 and Net NPA to total assets ratio was highest in the year
2018.

[44]
 MANAGEMENT EFFICIENCY RATIOS:

Ratios
2018 2017 2016 2015 2014
Total advances to total
deposits
ratio 107.18 102.04 99.19 99.31 95.90

Business per employee

112938140.26 92849708.72 9391171 87382046. 77580440
5.27 47 .08
Profits per employee
1684887.74 1358302.69 1341411. 86 1109420.2 904241.9
1 9
Return on equity ratio
14.3 13.7 12.9 11.1 9.6

Interpretation:

it is found that ICICI Total advances to total deposits ratio was highest in the year 2018,
Business per employee was highest in the year 2015, Profits per employee was highest in the
year 2018 and Return on equity ratio was highest in the year 2018.

[45]
 EARNING QUALITY:

Ratios
2018 2017 2016 2015 2014
Operating profit to total asset ratio
3.05 2.79 2.45 2.19 2.23
Net profit to total asset ratio
1.73 1.65 1.55 1.36 1.27
Interest income to total income ratio
80.13 80.90 82.76 81.72 79.62
Net interest margin to total asset ratio
3.48 3.33 3.11 2.73 2.64

Interpretation:

It is found that ICICI Operating profit to total asset ratio was highest in the year 2018, Net profit
to total asset ratio was highest in the year 2018, Interest income to total income ratio was highest
in the year 2016 and Net interest margin to total asset ratio was highest in the year 2018.

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 LIQUIDITY RATIOS:

Ratios
2018 2017 2016 2015 2014
Liquid asset to total asset ratio
6.55 6.98 7.71 7.65 8.39
Liquid asset to total deposit ratio
11.70 12.51 14.15 14.18 15.11
Liquid asset to demand deposit
ratio 85.43 96.03 112.16 103.59 98.02

Government securities to total

asset
ratio 16.62 16.12 17.33 18.45 16.00

Interpretation:
it is found that ICICI Liquid asset to total asset ratio was highest in the year 2016, Liquid asset
to total deposit ratio was highest in the year 2016, Liquid asset to demand deposit ratio was
highest in the year 2016 and Government securities to total asset ratio was highest in the year
2015.

CONCLUSION:

The overall financial performance of ICICI banks in India for the period of 2014-2018. It is
found that under the capital adequacy ratio parameter bank was at the average, asset quality
parameter ICICI bank was moderate, management efficiency parameter ICICI bank was in an
increasing trend, earning quality parameter the ICICI bank was in an growing trend and liquidity
parameter ICICI bank were on the top position.

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 BIBLIOGAPHY:

www.icici.com
www.canarabank.Com
www.Moneycontrol.Com
www.Money.Rediff.Com
www.Wikipedia.Org
www.Scribd.Com
www.schlor.google.com
www. Marketing91.com
www.researchgate.net
www.keydifference.com

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