Bank Performance Analysis

Performance Analysis of ICICI Bank

PROFITABILITY ANALYSIS
Mar-20

Rs in Crore
1 Total Assets 1098365.15
2 Earning Assets
Balances with RBI 35283.96
Balances with Banks in Deposit Accounts 770968.99
Balances with Banks & money at Call & Short Notice 83871.78
Balances with Banks Outside India
Investments + 249531.48
Advances + 645289.97
Total Earning Assets 1784946.18
3 Interest bearing Liabilities
Saving Deposits
Term & Other Deposits 770969
Borrowings 162896.76
Subordinated Debt 0
Total Interest bearing liabilities 933865.76

Equity Capital 1294.76

Reserves 115206.16
Total Equity 116500.92
5 Interest Income 74798.32
6 Interest Expenditure 41531.25
10 Non-interest operating income 16448.62
11 Non-interest operating Expenditure 12394.63
Payments to and Provisions for Employees 8271.24
TOTAL EXPENDITURE 83316.13
12 Provisions and Contingencies 20170.46
Provisions and Contingencies include provision for tax
Profit After tax 7930.81

PROFITABILITY RATIOS
Return on Assets= NI/ TA 0.72%
Equity Multiplier TA/ TE 942.80%
TE/ TA 10.61%
ROE=ROA X EM 6.81%

NI/ OR 23.84%
OR/ TA 3.03%
TA/ TE 942.80%
*OR 33267.07
(II - IE)/ TA 0.0302878054716
(OI-OE)/ TA 0.37%
Provisions/TA 1.84%
ROA 0.72%

(II- IE)/E A 1.86%

EA/ TA 162.51%
(II - IE)/ TA 3.03%

NIM 1.86%
II/ EA 4.19%
IE/ Intt Bearing Liab 4.45%
Intt Bearing Liabilities/ EA 52.32%
Spread 265.4

Efficiency ratio= Non intt exp/ (Net Interest Income+Non intt income) 13.58%

RISK RATIOS
Liquidity Risk= Short term securities/ Deposits
Interest Rate Risk = Interest Sensitive Assets/ Interest Sensitive Liabilities
Credit Risk = Provisioning / Assets 1.84%
Capital Risk = Capital / Assets 0.12%
Leverage ratio= Total equity/Total assets 10.61%
Total capital ratio= (Total equity + Long-term debt + Reserve for loan los 35.93%
Provision for loan loss ratio= PLL/ TL (provision for loan losses/total
loans and leases)
Loan Ratio = Net loans/ Total assets 14.83%
Loss Ratio = Net charge-offs on loans (gross charge-offs minus
recoveries)/ Total loans and leases

Reserve Ratio = Reserve for loan losses (reserve for loan losses last year
minus gross charge-offs plus PLL and recoveries)/Total loans and leases

Nonperforming ratio= Nonperforming assets (nonaccrual loans and

restructured loans)/Total loans and leases

Operating efficiency (cost control)= Wages and salaries/Total expenses 9.93%

Volatile liability dependency ratio= (Total volatile liabilities -

Temporary investments)/Net loans and leases
nalysis

lysis of ICICI Bank

Mar-19 Mar-18 Mar-17 Mar-16 Analysis and comments

Rs in Crore Rs in Crore Rs in Crore Rs in Crore

964459.15 879189.16 771791.45 720695.1

37858.01 33102.38 31702.41 27106.09

652919.67 560975.21 490039.06 421425.71
42438.27 51067 44010.66 32762.65

207732.68 202994.18 161506.55 160411.8

586646.58 512395.29 464232.08 435263.94
1527595.21 1360534.06 1191490.76 1076970.19

652919.69 560975.19 490039.06 421425.72

165319.97 182858.62 147556.15 174807.38
0 0 0 0
818239.66 743833.81 637595.21 174807.38

1289.46 1285.81 1165.11 1163.17

107073.91 103867.56 98779.71 88565.72
108363.37 105153.37 99944.82 89728.89
63401.19 54965.89 54156.28 52739.43
36386.4 31940.05 32418.96 31515.39
14512.16 17419.63 19504.48 15323.05
10503.91 9009.25 8263.7 8972.36
6808.24 5913.95 5733.71 3012.69
74550.05 65608.1 63859.67 58336.2
20074.6 17964.11 16685.66 14137.25

3363.3 6777.42 9801.09 9726.29

0.35% 0.77% 1.27% 1.35%

Profitability ratios are a class of finan
890.02% 836.10% 772.22% 803.19%
are used to measure a business's abili
11.24% 11.96% 12.95% 12.45%
revenues relative to its operating cost
3.10% 6.45% 9.81% 10.84% assets, and shareholders' equity.
As the return on assets (ROA) is decr
12.45% 29.43% 45.09% 45.83% passing year, we can conclude that IC
2.80% 2.62% 2.82% 2.94% optimizing its resources to generate p
890.02% 836.10% 772.22% 803.19% 2020 it managed to cover up the prev
27014.79 23025.84 21737.32 21224.04 ROA and fixes it to 0.72%. Similarly,
decreased from 10.84% in 2016 to 3.1
but, in 2020 it jumps on 6.81% which
indication. Interest income in respect
bearing liabilities is also getting lowe
year.
Overall, the profitability of ICICI Ban
 assets, and shareholders' equity.
As the return on assets (ROA) is decr
passing year, we can conclude that IC
optimizing its resources to generate p
2020 it managed to cover up the prev
ROA and fixes it to 0.72%. Similarly,
2.80% 2.62% 2.82% 2.94% decreased from 10.84% in 2016 to 3.1
0.42% 0.96% 1.46% 0.88% but, in 2020 it jumps on 6.81% which
2.08% 2.04% 2.16% 1.96% indication. Interest income in respect
0.35% 0.77% 1.27% 1.35% bearing liabilities is also getting lowe
year.
1.77% 1.69% 1.82% 1.97% Overall, the profitability of ICICI Ban
158.39% 154.75% 154.38% 149.43% maintained and covering up all the pr
2.80% 2.62% 2.82% 2.94% in its financial ratios.

1.77% 1.69% 1.82% 1.97%

4.15% 4.04% 4.55% 4.90%
4.45% 4.29% 5.08% 18.03%
53.56% 54.67% 53.51% 16.23%
210.85 110.3 96.83 99.27

13.48% 12.45% 11.22% 13.18%

Financial risk ratios assess a company

2.08% 2.04% 2.16% 1.96% which are an indicator of a company's
0.13% 0.15% 0.15% 0.16% Lower the ratios lower the risk. It me
11.24% 11.96% 12.95% 12.45% came out to be lower then the risk wi
39.48% 44.57% 44.87% 48.99% Credit risk was higher in 2017, 2018,
compare to the ratio in 2016, but, in 2
lowers to 1.81% which is lower than
Similarly, the capital risk has also dec
17.14% 20.80% 19.12% 24.26%
Overall, the risk ratios are decreasing
which means the company is at low r

9.13% 9.01% 8.98% 5.16%

 and comments

lity ratios are a class of financial metrics that

to measure a business's ability to generate
relative to its operating costs, balance sheet
nd shareholders' equity.
turn on assets (ROA) is decreasing by
year, we can conclude that ICICI Bank is not
ng its resources to generate profit. But in
managed to cover up the previous decline in
d fixes it to 0.72%. Similarly, ROE has also
d from 10.84% in 2016 to 3.10% in 2019,
020 it jumps on 6.81% which is a good
n. Interest income in respect of interest
iabilities is also getting lower by passing

the profitability of ICICI Bank is well

nd shareholders' equity.
turn on assets (ROA) is decreasing by
year, we can conclude that ICICI Bank is not
ng its resources to generate profit. But in
managed to cover up the previous decline in
d fixes it to 0.72%. Similarly, ROE has also
d from 10.84% in 2016 to 3.10% in 2019,
020 it jumps on 6.81% which is a good
n. Interest income in respect of interest
iabilities is also getting lower by passing

the profitability of ICICI Bank is well

ed and covering up all the previous decline
ancial ratios.

l risk ratios assess a company's debt levels,

e an indicator of a company's financial health.
he ratios lower the risk. It means if the ratios
t to be lower then the risk will also be lower.
sk was higher in 2017, 2018, and 2019 as
to the ratio in 2016, but, in 2020, credit risk
o 1.81% which is lower than it was in 2016.
y, the capital risk has also decreased.
the risk ratios are decreasing by passing year
eans the company is at low risk and not volatile.