PROJECT REPORT

ON
“FINANCIAL
ANALYSIS”OF

Submitted to,

AISECT UNIVERSITY,
HAZARIBAG, JHARKHAND

Department of Management
MASTER OF BUSINESS ADMINISTRATION
(Finance & IT)

Submitted by:
Name: Mahesh Kumar
Roll No: R20MG2PL0035
Subject Code: 6MMBA 342
Class : MBA-3rd Semester (F&IT)

DEPARTMENT OF MANAGEMENT
Head of Department
Prof: Ritesh kumar
 PREFACE

In any organization, the two important financial statements are the Balance
Sheet and Profit & Loss Account of the business. Balance Sheet is a statement
of financial position of an enterprise at a particular point of time. Profit & Loss
account shows the net profit or net loss of a company for a specified period of
time. When these statements of the last few year of any organization are
studied and can be analyzed as following:

 Significant conclusions may be arrived regarding the changes in the

financial position.
 The important policies followed and trends in profit and loss etc.
 Analysis and interpretation of financial statement has now become an
important technique of credit appraisal.

The investors, financial experts, management executives and the bankers all
analyze these statements. Though the basic technique of appraisal remains the
same in all the cases but the approach and the emphasis in the analysis vary.

A banker interprets the financial statement so as to evaluate the financial

soundness and stability, the liquidity position and the profitability or the
earning capacity of borrowing concern. Analysis of financial statements is
necessary because it helps in depicting the financial position on the basis of
past and current records. Analysis of financial statements helps in making the
future decisions and strategies. Therefore it is very necessary for every
organization whether it is a financial or manufacturing, to make financial
statement and to analyze it.

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Table of content

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Chapter 1

 Introduction of banking
 History of banking in India
 Banks in India

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Definition Of Bank:

Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits
of money from the public, repayable on demand or otherwise and withdraw by cheque,
draft or otherwise."
In other words ―A bank is a financial institution licensed to receive deposits and make
loans. Banks may also provide financial services such as wealth management, currency
exchange, and safe deposit‖

Understanding Banks

Banks are a very important part of the economy because they provide vital services for
both consumers and businesses. As financial services providers, they give you a safe
place to store your cash. Banks also provide credit opportunities for people and
corporations. The bank lends the money you deposit at the bank—short-term cash—to
others for long-term debt.

Banking system in India

Banks are the financial institutions having the primary purpose of lending money to
individuals/solopreneurs/businesses, receiving deposits, disburse payments, safeguarding money,
and investing in stocks/bonds.

Here is the list of financial regulators in India on which the Indian economy is dependent
immensely:

1. RBI : The father of all banks, ‗RBI‗ is the central banking institution of our
country. All banks regulate and operate as per the guidelines issued by the
Reserve Bank of India.

2. Securities Exchange Board of India (SEBI) : SEBI is a statutory body solely

responsible for regulating the securities and Indian capital markets under the
jurisdiction of the Ministry of Finance.

3. Insurance Regulatory and Development Authority (IRDA): IRDA is

another regulatory body whose primary objective is to protect the interests of the
insured person. It is solely responsible for monitoring insurance-related activities and

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 ensure the development of the insurance industry.

One should know the history of the banking system in India. Thus, we have gathered
some important points about the history of the banking system in India.

 List of Pre-Independence Banks in India (1786-1947)

Pre-Independence Banks in India

Bank Name Year of Establishment
Allahabad Bank 1865
Punjab National Bank 1894
Bank of India 1906
Central Bank of India 1911
Canara Bank 1906
Bank of Baroda 1908
In addition, SBI is the largest public sector bank in India and is serving numerous
customers through its impeccable services.

List of Post Independence Banks in India (1947-1991).

The subsidiaries of the State bank of India were nationalized in the year 1959, including:
 State Bank of Mysore
 State Bank of Bikaner & Jaipur
 State Bank of Indore
 State Bank of Patiala
 State Bank of Travancore
 State Bank of Saurashtra
 State Bank of Hyderabad
Besides, the list of the other 14 Banks nationalized in 1969 includes:
 Punjab National Bank
 Indian Overseas Bank
 Canara Bank
 Bank of Baroda
 Central Bank of India
 Bank of India

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  Dena Bank
 Allahabad Bank
 Indian Bank
 Bank of Maharashtra
 Syndicate Bank
 Union Bank of India
 United Bank
 UCO Bank
11 years later, In 1980, another 6 banks were added to the list of the
nationalized banks, including:

 Vijaya Bank
 Punjab & Sind Bank
 New Bank of India
 Oriental Bank of Comm.
 Corporation Bank
 Andhra Bank

What are the Types of Banks in India?

1. Scheduled Banks

Scheduled banks; whose paid-up capital is more than Rs 5 lakhs. These banks do not
harm the interest of the depositors. Some of the scheduled banks in India are Bank of
India, Bank of Baroda, Allahabad Bank, Andhra Bank, Indian Bank, Dena Bank, Canara
Bank, and Bank of Maharashtra.

2. Non-Scheduled Banks

Non-Scheduled banks do not comply with the guidelines specified by the RBI (Reserve
Bank of India). These banks are opposite of Scheduled Banks, which implies the paid-up
capital of non-scheduled banks is less than Rs. 5 lakhs. This category of banking system
follows CRR conditions.

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3. Central Bank

The Central bank of India is responsible for regulating and guiding other banks in the
country. It is a chief bank known as the ‗banker‘s bank‘ or the ‗government‘s bank.‘

In India, the RBI is the central bank whose primary function is to emanate our country‘s
currency and execute financial strategies, approaches, and determining policies.

4. Cooperative Banks

Cooperative banks carry out all the activities under the guidelines of the state
government. These banks‘ primary objective is to ensure public welfare and social well-
being, which is achieved by offering loans to people.

5. Commercial Banks

a. Public Sector Banks: The share of public sector banks is owned by the government.
At present, there are 12 public sector banks in India, including SBI, Indian Overseas
Bank, Bank of Baroda, and many others.

b. Private Sector Banks: The majority of the share is held by the business houses or
private stakeholders. Some of the private sector banks include ICICI Bank, HDFC Bank,
Axis Bank, etc.

c. Foreign Banks: Foreign banks manage their operations headquartered overseas and
carry out the functions under the regulation provided by the central government of India.
One of the examples of foreign banks in India is Citi Bank.

6. Development Banks

These are specialized financial institutions that provide long-term and short-term loans to
entrepreneurs at a low rate of interest as compared to other banks.

7. Land Mortgage Banks

These banks are also known as the Land Development Banks. These banks were
incorporated to provide long-term loans to the farmers at a low rate of interest.

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8. Regional Rural Banks

Regional Rural Banks were established to ensure the welfare of the weaker section of the
rural population. The primary purpose of these banks was to meet all the requirements of
the unprivileged people.

9. Exchange Banks

Exchange banks are primarily involved in the activities related to buying and selling of
foreign exchange. The purpose of these banks is to boost international trade.

10. Exim Banks

Exim banks provide great support to the importers and exporters. These banks are also
known as ‗Export-Import Bank‘ granting long-term financial assistance to the exporters
and importers.

History : 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.

 1956 : ICICI declared its first dividend of 3.5%.
 1958 : Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.
 1960 : ICICI building at 163, Backbay Reclamation, inaugurated.
 1961 : The first West German loan of DM 5 million from Kredianstalt obtained.
 1967 : ICICI made its first debenture issue for Rs.6 crore, which was
oversubscribed.
 1969 : The first two regional offices in Calcutta and Madras set up.
 1972 : The second entity in India to set up merchant banking services. : Mr. H. T.
Parekh appointed the third Chairman of ICICI.

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  1977 : ICICI sponsored the formation of Housing Development Finance
Corporation. Managed its first equity public issue.
 1978 : Mr. James Raj appointed the fourth Chairman of ICICI.
 1979 : Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.
 1982 : 1982 : ICICI became the first ever Indian borrower to raise European
Currency Units. : ICICI commences leasing business.
 1984 : Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
 1985 : Mr. N.Vaghul appointed the seventh Chairman and Managing Director of
ICICI.
 1986 : ICICI became the first Indian institution to receive ADB Loans. : ICICI,
along with UTI, set up Credit Rating Information services of india limited.
 ICICI has been renowned sector from very beginning and currently providing its
very true services in ongoing decades.

Products
ICICI Bank offers products and services such as online money transfers, tracking
services, current accounts, savings accounts, time deposits, recurring deposits, mortgages,
loans, automated lockers, credit cards, prepaid cards, debit cards and digital wallets called
ICICI pocket.
ICICI bank launched 'ICICI Stack' which provides online services such as payment
options, digital accounts, instant car loans, insurance, investments, loans etc.

Business profile
ICICI Bank Limited is an Indian multinational banking and financial services company with
its registered office in Vadodara, Gujarat and corporate office in Mumbai, Maharashtra.It
offers a wide range of banking products and financial services for corporate and retail
customers through a variety of delivery channels and specialised subsidiaries in the areas
of investment banking, life, non-life insurance, venture capital and asset management.

Objectives of the ICICI

The major objective of the ICICI was to meet the needs of the industry for permanent and
long term funds in the private sector. In general, the major objectives of the Corporation
are:

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1. To assist in creation, growth and modernization of business enterprises in the non-
public sector.

2. To encourage and promote the involvement of internal and external capital sources, in
such enterprises.
3. To motivate pvt ownership of industrial investment and to promote and assist in the
expansion of markets.
4. To provide equipment finance.
5. To provide finance for rehabilitation of industrial units.

Functions of the ICICI

In order to accomplish the above objectives, the Corporation performs the following
functions:
Providing finance in the form of long-term or medium term loans or equity participation.
Sponsoring and underwriting new issues of shares and other securities,
Guaranteeing loans from other private investment sources.
Making funds available for reinvestment by revolving investment as rapidly as possible.
Providing project advisory services i.e. offering advice –
to private sector companies in the pre-investment stages on Government policies and
procedures, feasibility studies and joint venture search, and
to Central and State Governments on specific policy related issues.

Technology used in ICICI Bank

ICICI use many type of advance technological software like Pinnacle
7.0 andPinnacle7.016.Among from this software ICICI bank uses the e-banking, core
banking, mobile banking electronic display. ICICI Bank was using Teradata for its
data warehouse.
FINANCIAL ANALYSIS
What is Financial Analysis? Financial analysis is used to find financial stability,
evaluate economic trends, financial policymaking for the long term, and evaluation of
businesses in order to determine its profitability, sustainability, and strength of earning
potential.

As the analysis of financial reports also means an understanding of the functioning of

11
business decision-making which includes observation, assessment, forecasting, and
formulation of diagnosis all the processes that took place in any organization,
summarised within the financial statements.

Financial analysis is an essential part of all commercial operations as it facilitates

litigable insights into the health and capacity of the organization in the future. Alongside
providing imperative data to the lenders and investors that could sway the price of stocks
or rate of interest, this information also enables company managers to measure their
performance in terms of the expectations or growth of the industry.

From the perspective of the management, financial analysis is essential for the
advancement of the company as it sheds light on the strengths as well as the weaknesses
which in turn directly impact competitiveness.

Types of Financial Analysis:

 Fundamental Analysis: The fundamental analysis gives you the perspective
of a company's intrinsic value by examining related economic and financial factors.

o It is a technique that gives you a better conviction to identify companies for

long term investment and create wealth.
o Analysts prefer this technique to find stocks that are currently trading at
undervalued or overvalued, and then decide a fair market value of those
stocks to help the investors in their investment decisions.

Type of fundamental analysis :

1 Qualitative analysis: It includes the quality of company‘s executives, vision, brand-

name recognition, patents and proprietary information, technology.

1. Quantitative analysis : Quantitative analysis of financial statements is used to

understand a company's financial performance better before making an investment
decision. The three most important financial statements being used for quantitative
analysis are income statements, balance sheets and cash flow statements.

 Technical Analysis:
In technical analysis analysts evaluate the investment opportunities by analyzing
past statistical trends such as volume and price. Technical analysts assume that
prices of the stock are more likely to follow the past trend rather than move
strangely.

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 Technical analysts believe the fact that history will repeat itself and we can better
understand the opportunities to invest if we understand the past patterns or trends.

Method/Tools of financial analysis:

Financial analysis tools are different ways or methods of evaluating and interpreting a
company‘s financial statements for various purposes like planning, investment, and
performance. Some of the most used financial tools based on their usage and
requirements are common size statements (vertical analysis), comparative financial
statements (comparison of financial statements), ratio analysis (quantitative analysis),
cash flow analysis, and trend analysis.

The top four most common financial analysis tools are:

 Common Size Statement
 Comparative financial statements
 Ratio Analysis
 Benchmarking analysis

 Common Size Statement

It is the first financial analysis tool. In the market, companies of various sizes and
structures are available. To compare them, one must prepare their financial statement in
absolute formats bringing all the particulars. The globally acceptable form to disclose the
financials for comparison is to bring in data in a percentage format. The organization will
prepare main financial statements like Common size Balance sheet, Common size

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Income statement, and common-size cash flow statement.

 Comparative financial statements

Comparative financial statements are used in horizontal analysis or trend analysis. It
helps analyze the periodic change in various components of the financial statements and
displays which element has the maximum impact.

 Ratio Analysis
Ratio analysis is the most commonly used financial analysis tool by analysts, experts,
internal financial planners, the analysis department, and other stakeholders. It has various
kinds of ratios, which are following :
Profitability Ratio Formula
 Rate of return analysis
 Solvency Ratios
 Liquidity
 Coverage of interest or any cost
 Comparing any component with turnover

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  Benchmarking analysis:
 Benchmarking is the process of comparing the actuals with the targets set by the
top management.
 It also refers to the comparison made with the best practices and strives to achieve
the same.
 In this procedure, the below steps are to be performed: –

 Step 1: Select the area which is needed to be optimized.

 Step 2: Identify the trigger points to compare them.
 Step 3: Try to set up a better standard or take industrial standards as the
benchmark.
 Step 4: Evaluate the periodic performance and measure the trigger points.
 Step 5: Check whether the same is achieved; if not, do variance analysis.
 Step 6: If achieved, strive to set up a better benchmark.

For benchmarking, ratios, operating margin matrix, etc., can be used. The operating
margin of the industry average can be compared and should try to arrive at a better
position.

Conclusion
There are numerous tools available in the market to carry out the financial analysis based
on the various needs. Furthermore, based on their conditions, organizations also build
various in-house tools, which help them track their requirements. It is of utmost
importance to follow the performance of the organization and the competitor, as it will
help maintain and thrive the performance of the business.

Balance sheet of ICICI Bank or Financial

position of the ICICI Bank LTD:
The Balance Sheet is a statement that shows the financial position of the business. It
records the assets and liabilities of the business at the end of the accounting period after
the preparation of trading and profit and loss accounts

Standalone Balance sheet of ICICI Bank LTD: it is a balance sheet where the
holding company does not show any financial report of its subsidiary and associate
companies. These reports or balance sheets only contain financial information about the

15
holding company and reflect the position of the holding company only.

BALANCE SHEET OF ICICI MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

BANK (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 1,383.41 1,294.76 1,289.46 1,285.81 1,165.11

TOTAL SHARE CAPITAL 1,383.41 1,294.76 1,289.46 1,285.81 1,165.11

Revaluation Reserve 3,093.59 3,114.87 3,044.51 3,003.19 3,042.14

Reserves and Surplus 143,029.08 112,091.29 104,029.40 100,864.37 95,737.57

Total Reserves and Surplus 146,122.67 115,206.16 107,073.91 103,867.56 98,779.71

TOTAL SHAREHOLDERS 147,509.19 116,504.41 108,368.04 105,158.94 99,951.07

FUNDS

Deposits 932,522.16 770,968.99 652,919.67 560,975.21 490,039.06

Borrowings 91,630.96 162,896.76 165,319.97 182,858.62 147,556.15

Other Liabilities and Provisions 58,770.37 47,994.99 37,851.46 30,196.40 34,245.16

TOTAL CAPITAL AND 1,230,432.68 1,098,365.15 964,459.15 879,189.16 771,791.45

LIABILITIES

ASSETS

Cash and Balances with Reserve 46,031.19 35,283.96 37,858.01 33,102.38 31,702.41
Bank of India

Balances with Banks Money at Call 87,097.06 83,871.78 42,438.27 51,067.00 44,010.66
and Short Notice

Investments 281,286.54 249,531.48 207,732.68 202,994.18 161,506.55

Advances 733,729.09 645,289.97 586,646.58 512,395.29 464,232.08

Fixed Assets 8,877.58 8,410.29 7,931.43 7,903.51 7,805.21

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Other Assets 73,411.21 75,977.67 81,852.17 71,726.80 62,534.55

TOTAL ASSETS 1,230,432.68 1,098,365.15 964,459.15 879,189.16 771,791.45

OTHER ADDITIONAL
INFORMATION

Number of Branches 5,266.00 5,324.00 4,874.00 4,867.00 4,850.00

Number of Employees 98,750.00 99,319.00 86,763.00 82,724.00 82,841.00

Capital Adequacy Ratios (%) 19.12 16.00 17.00 18.00 17.00

KEY PERFORMANCE
INDICATORS

Tier 1 (%) 18.06 15.00 15.00 16.00 14.00

Tier 2 (%) 1.06 1.00 2.00 3.00 3.00

ASSETS QUALITY

Gross NPA 40,841.42 40,829.09 45,676.04 53,240.18 42,159.39

Gross NPA (%) 8.00 6.00 7.00 0.00 9.00

Net NPA 9,117.66 9,923.24 13,449.72 27,823.56 25,216.81

Net NPA (%) 2.10 1.54 2.29 5.00 5.00

Net NPA To Advances (%) 2.00 2.00 2.00 5.00 5.00

CONTINGENT LIABILITIES,
COMMITMENTS

Bills for Collection 54,643.42 48,216.24 49,391.99 28,588.36 22,623.19

Contingent Liabilities 2,648,640.67 2,523,825.80 1,922,038.29 1,289,244.00 1,030,993.71

Consolidated Balance sheet of ICICI Bank LTD: A consolidated balance

sheet is a financial statement that shows the financial position of a parent company and
its subsidiary companies. In simple words, a consolidated balance sheet is mere
consolidation of financial details of all a subsidiary including parent company and
presenting as one balance sheet for the entire group.

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A consolidated balance sheet is usually prepared by the business operating as a group of
companies that have more than one subsidiary and it portrays the combined details
of assets and liabilities.

BALANCE SHEET OF ICICI MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

BANK (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 1,383.41 1,294.76 1,289.46 1,285.81 1,165.11

TOTAL SHARE CAPITAL 1,383.41 1,294.76 1,289.46 1,285.81 1,165.11

Revaluation Reserve 3,125.28 3,143.36 3,070.00 3,027.64 3,065.11

Reserves and Surplus 1,383.41 1,294.76 1,289.46 1,285.81 1,165.11

TOTAL RESERVES AND 156,200.99 121,661.81 112,959.27 109,338.32 103,460.63

SURPLUS

TOTAL SHAREHOLDERS 153,075.71 118,518.45 109,889.27 106,310.68 100,395.52

FUNDS

Minority Interest 9,588.34 6,794.77 6,580.54 6,008.19 4,865.31

Deposits 959,940.02 800,784.46 681,316.94 585,796.11 512,587.26

Borrowings 143,899.94 213,851.78 210,324.12 229,401.83 188,286.76

Other Liabilities and Provisions 99,616.41 87,414.91 73,940.14 192,445.22 175,671.34

TOTAL CAPITAL AND 1,573,812.24 1,377,292.23 1,238,793.89 1,124,281.04 986,042.66

LIABILITIES

ASSETS

Cash and Balances with Reserve 46,302.20 35,311.93 38,066.28 33,272.60 31,891.26
Bank of India

Balances with Banks Money at 101,268.33 92,540.99 49,324.62 55,726.53 48,599.61

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 Call and Short Notice

Investments 536,578.62 443,472.63 398,200.76 372,207.68 304,501.74

Advances 791,801.39 706,246.11 646,961.68 566,854.22 515,317.31

Fixed Assets 10,809.26 10,408.66 9,660.42 9,465.01 9,337.96

Other Assets 87,052.45 89,311.91 96,580.14 86,755.00 76,394.78

TOTAL ASSETS 1,573,812.24 1,377,292.23 1,238,793.89 1,124,281.04 986,042.66

CONTINGENT LIABILITIES,
COMMITMENTS

Bills for Collection 54,846.38 48,401.26 49,579.19 28,705.41 22,755.55

Contingent Liabilities 3,021,344.23 3,003,053.53 2,612,071.94 1,891,035.83 1,307,841.59

With the effect of chart view, Comparision between

Standalone and Consolidated balancesheet for different
financial year :
17-Mar
Standalone total Consolidated Total
21-Mar 17-Mar 21-Mar
16% 25% 15% 25%

18-Mar
18-Mar 18%
18%

20-Mar
20-Mar 22%
19-Mar 22% 19-Mar
19% 20%

Fig : Standalone % of total financial position Fig :Consolidated % of total financial position

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Trading Profit and Loss A/C of ICICI Bank or
Financial position of the ICICI Bank LTD:

1. Standalone Trading & PL A/c :

PROFIT & LOSS ACCOUNT OF ICICI MAR 21 MAR 20 MAR 19 MAR 18 MAR 17
BANK (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

Interest / Discount on Advances / Bills 57,288.81 57,551.11 47,942.62 40,866.21 39,603.39

Income from Investments 16,539.78 14,673.21 12,796.88 11,568.17 11,377.07

Interest on Balance with RBI and Other 1,631.91 682.15 736.09 663.38 495.46
Inter-Bank funds

Others 3,657.77 1,891.85 1,925.60 1,868.14 2,680.35

TOTAL INTEREST EARNED 79,118.27 74,798.32 63,401.19 54,965.89 54,156.28

Other Income 18,968.53 16,448.62 14,512.16 17,419.63 19,504.48

TOTAL INCOME 98,086.80 91,246.94 77,913.36 72,385.52 73,660.76

EXPENDITURE

Interest Expended 40,128.84 41,531.25 36,386.40 31,940.05 32,418.96

Payments to and Provisions for Employees 8,091.78 8,271.24 6,808.24 5,913.95 5,733.71

Depreciation 1,058.40 947.12 776.91 780.74 757.65

Operating Expenses (excludes Employee 12,397.26 12,394.63 10,503.91 9,009.25 8,263.70

Cost & Depreciation)

TOTAL OPERATING EXPENSES 21,560.83 21,614.41 18,089.06 15,703.94 14,755.06

Provision Towards Income Tax 4,665.66 3,746.03 3,360.60 2,661.85 2,180.12

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Provision Towards Deferred Tax -675.62 2,371.20 -2,947.14 -2,004.72 -702.60

Other Provisions and Contingencies 16,214.40 14,053.23 19,661.14 17,306.98 15,208.14

TOTAL PROVISIONS AND 20,204.44 20,170.46 20,074.60 17,964.11 16,685.66

CONTINGENCIES

TOTAL EXPENDITURE 81,894.11 83,316.13 74,550.05 65,608.10 63,859.67

NET PROFIT / LOSS FOR THE YEAR 16,192.68 7,930.81 3,363.30 6,777.42 9,801.09

NET PROFIT / LOSS AFTER EI & 16,192.68 7,930.81 3,363.30 6,777.42 9,801.09
PRIOR YEAR ITEMS

Profit / Loss Brought Forward 21,327.47 17,879.57 18,495.26 18,744.94 17,132.19

TOTAL PROFIT / LOSS AVAILABLE 37,520.15 25,810.38 21,858.56 25,522.36 26,933.28

FOR APPROPRIATIONS

APPROPRIATIONS

Transfer To / From Statutory Reserve 4,048.20 1,982.80 840.90 1,694.40 2,450.30

Transfer To / From Capital Reserve 130.23 395.44 28.00 2,565.46 5,293.30

Transfer To / From Revenue And Other 1,500.00 0.00 350.00 700.00 0.00
Reserves

Dividend and Dividend Tax for The 0.00 645.31 0.00 0.00 0.00
Previous Year

Equity Share Dividend 0.00 0.00 965.13 1,457.46 0.95

Tax On Dividend 0.00 0.00 0.00 8.73 -7.19

Balance Carried Over To Balance Sheet 31,009.07 21,327.47 17,879.57 18,495.26 18,744.94

TOTAL APPROPRIATIONS 37,520.15 25,810.38 21,858.56 25,522.36 26,933.28

OTHER INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 24.01 12.28 5.23 10.56 15.31

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Diluted EPS (Rs.) 23.67 12.08 5.17 10.46 15.25

DIVIDEND PERCENTAGE

Equity Dividend Rate (%) 100.00 0.00 50.00 75.00 125.00

2. Consolidated Trading & PL A/c :

PROFIT & LOSS ACCOUNT OF MAR 21 MAR 20 MAR 19 MAR 18 MAR 17
ICICI BANK (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

Interest / Discount on Advances / Bills 60,261.69 60,928.31 50,884.83 43,252.82 42,080.37

Income from Investments 23,264.25 20,971.20 18,102.29 16,125.62 15,456.07

Interest on Balance with RBI and 1,881.72 907.41 927.11 810.41 623.00
Other Inter-Bank funds

Others 3,755.00 2,028.85 2,067.43 1,973.50 2,780.53

TOTAL INTEREST EARNED 89,162.66 84,835.77 71,981.65 62,162.35 60,939.98

Other Income 72,173.81 64,950.33 59,324.85 56,806.75 52,457.65

Total Income 161,336.48 149,786.10 131,306.50 118,969.10 113,397.63

EXPENDITURE

Interest Expended 42,659.09 44,665.52 39,177.54 34,262.05 34,835.83

Payments to and Provisions for 11,050.91 11,156.75 9,425.26 8,333.53 7,893.26

Employees

Depreciation 1,326.69 1,169.79 945.84 922.14 911.64

Depreciation on Leased Assets 13.39 1.42 0.00 0.00 0.00

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Operating Expenses (excludes 63,880.69 59,189.94 53,887.78 46,499.96 39,365.08
Employee Cost & Depreciation)

TOTAL OPERATING EXPENSES 76,271.67 71,517.90 64,258.88 55,755.63 48,169.97

Provision Towards Income Tax 6,261.18 5,177.81 4,808.28 4,078.21 3,137.56

Provision Towards Deferred Tax -596.81 2,185.33 -3,089.18 -2,199.29 -668.54

Other Provisions and Contingencies 16,377.39 15,014.07 20,461.82 17,972.96 16,582.48

TOTAL PROVISIONS AND 22,041.76 22,377.21 22,180.92 19,851.88 19,051.50

CONTINGENCIES

TOTAL EXPENDITURE 140,972.51 138,560.64 125,617.34 109,869.56 102,057.30

NET PROFIT / LOSS FOR THE 20,363.97 11,225.47 5,689.16 9,099.54 11,340.33
YEAR

NET PROFIT / LOSS AFTER EI & 20,363.97 11,225.47 5,689.16 9,099.54 11,340.33
PRIOR YEAR ITEMS

Minority Interest -1,979.65 -1,659.16 -1,434.92 -1,387.36 -1,151.95

Share Of Profit/Loss Of Associates 0.00 0.00 0.00 0.00 0.00

CONSOLIDATED PROFIT/LOSS 18,384.32 9,566.31 4,254.24 7,712.19 10,188.38

AFTER MI AND ASSOCIATES

Profit / Loss Brought Forward 26,800.00 22,020.11 21,999.16 21,504.55 19,821.08

TOTAL PROFIT / LOSS 45,184.31 31,586.42 26,253.40 29,216.73 30,009.46

AVAILABLE FOR
APPROPRIATIONS

APPROPRIATIONS

Transfer To / From Statutory Reserve 4,048.20 1,982.80 840.90 1,694.40 2,450.30

Transfer To / From Revenue And 1,653.28 68.63 1,643.72 645.45 44.65

Other Reserves

Dividend and Dividend Tax for The 0.00 0.00 0.00 0.00 -6.24
Previous Year

Equity Share Dividend 0.00 645.31 965.13 1,457.46 0.00

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Tax On Dividend 0.00 228.24 193.31 233.14 235.22

Balance Carried Over To Balance 38,515.60 26,800.00 22,046.38 21,999.16 21,504.55

Sheet

TOTAL APPROPRIATIONS 45,184.31 31,586.42 26,253.40 29,216.73 30,009.46

OTHER ADDITIONAL
INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 27.00 15.00 7.00 12.00 18.00

Diluted EPS (Rs.) 27.00 15.00 7.00 12.00 18.00

 With the effect of chart view, Comparision between

Standalone and Consolidated balancesheet for different
financial year :

17-Mar
Standalone Profit Consolidated profit
22%
17-Mar 21-Mar
21-Mar 20% 35%
37%

18-Mar
16%
18-Mar
15%
20-Mar 19-Mar 20-Mar
19-Mar
18% 10% 19%
8%

Analysis : The ICICI Bank is performing better results of profit in the financial year
ended 2021 in both the scenario i.e standalone as well consolidated financial statement of
profit and loss account. As per the graph we also found the lesser profit percentage in the
financial year ended march 2019, and then later on company performed better functions
and better results.

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On the other hand, simultaneously if the company is earning better profit then Earning
per share will be high or better for the shareholder earning.

Cash Flow Statement: The Meaning of Cash Flow Statement or statement of

cash flows can be defined as ‗cash flow statements exhibit the flow of incoming and
outgoing cash. This statement assesses the ability of the enterprise to generate cash and
to utilize the cash.
A cash flow statement is a financial statement that presents total data. Including cash
inflows a business gains from its continuing progress and external financing sources, as
well as all cash outflows that pay for trading activities and finances during a delivered
time.

Elements of the Cash Flow Statement: There are Three

Elements of Cash flow statement.
 Cash flow from operating activities
 Cash flow from investing activities
 Cash flow from financing activities

Cash Flow Statement of ICAI Bank:

1. Standalone Cash Flow Statement and its analysis :

CASH FLOW OF ICICI BANK (in Rs. Cr.) MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

12 mths 12 mths 12 mths 12 mths 12 mths

NET PROFIT/LOSS BEFORE 20,182.72 14,048.04 3,776.76 7,434.56 11,278.61

EXTRAORDINARY ITEMS AND TAX

Net CashFlow From Operating Activities 124,093.36 78,449.44 38,418.79 13,303.65 39,222.81

Net Cash Used In Investing Activities -53,491.40 -37,107.40 -23,875.31 -38,968.80 7,045.42

Net Cash Used From Financing Activities -55,935.32 -2,644.55 -18,251.09 34,118.30 -30,378.79

Foreign Exchange Gains / Losses -694.13 161.97 -165.48 3.17 -45.13

NET INC/DEC IN CASH AND CASH 13,972.51 38,859.45 -3,873.09 8,456.32 15,844.32
EQUIVALENTS

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 Cash And Cash Equivalents Begin of Year 119,155.74 80,296.29 84,169.38 75,713.06 59,868.74

Cash And Cash Equivalents End Of Year 133,128.25 119,155.74 80,296.29 84,169.38 75,713.06

2. Consolidated Cash Flow Statement and its analysis :

CASH FLOW OF ICICI BANK (in Rs. Cr.) MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

12 mths 12 mths 12 mths 12 mths 12 mths

NET PROFIT/LOSS BEFORE 24,048.68 26,800.00 5,973.34 9,591.10 12,657.43

EXTRAORDINARY ITEMS AND TAX

Net CashFlow From Operating Activities 138,015.30 79,564.75 48,671.05 19,382.93 52,635.53

Net Cash Used In Investing Activities -62,986.91 -42,308.43 -30,147.22 -50,573.45 -1,605.74

Net Cash Used From Financing Activities -54,666.77 2,992.18 -19,997.43 39,675.97 -35,469.54

Foreign Exchange Gains / Losses -644.01 213.52 -134.64 22.81 -105.36

NET INC/DEC IN CASH AND CASH 19,717.61 40,462.03 -1,608.24 8,508.26 15,454.90
EQUIVALENTS

Cash And Cash Equivalents Begin of Year 127,852.92 87,390.90 88,999.13 80,490.87 65,035.97

Cash And Cash Equivalents End Of Year 147,570.53 127,852.92 87,390.90 88,999.13 80,490.87

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  With the effect of chart view, Comparision between
Standalone and Consolidated Cash flow statement for different
financial year :

Standalone Net Cash Consolidated Net Cash

Flow 21-Mar Flow
17-Mar 17% 17-Mar
20% 18% 21-Mar
23%

18-Mar
10% 18-Mar
10%

19-Mar
20-Mar
-2% 20-Mar
19-Mar 48%
-5% 47%

Analysis : The ICICI Bank is performing better results of Net Cash Flow (+) in the
financial year ended 2020 in both the scenario i.e standalone as well consolidated
financial statement of Net Cash Flow Statement . As per the graph we also found the
lesser inflow of cash in the financial year ending 2021 in both the segment. The banks
has to work harder for their cash generation in the upcoming financial year.

In the Financial year ended 2019, the cash flow from standalone is very week as only
negative (-)5%, and on the other hand the cash flow in negative (-)2%, which is not good
sign for he company health but later on the banks has performed very good net cash flow
as compare to the last financial year.

CONCLUSION :
On the basis of various techniques applied for the financial analysis of ICICI Bank we
can arrive at a conclusion that the financial position and overall performance of the bank
is satisfactory. Though the income of the bank has increased over the period but not in
the same pace as of expenses. But the bank has succeeded in maintaining a reasonable
profitability position.

The bank has succeeded in increasing its share capital also which has increased around

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30% to 40% 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.
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 nonproductive expenses should be
curtailed to improve profitability.

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