FINAL YEAR PROJECT 2022

A PROJECT REPORT
ON
“Financial Statement Analysis
Of
ICICI Bank”
Submitted To
Panchayat Degree College, Bargarh

Submitted by: Guided by:-

Lipun bai. Bhanu Prakash das,
University Roll No. - S04519COM108. HOD of commerce
College Roll No. – BC-19-037
 Financial Statement Analysis

ACKNOWLEDGEMENT

Primarily I would thank GOD for being able to complete this project with
success. Then I would like to thank my Prof. Bhanu Prakash Das, whose
valuable guidance has been the ones that helped me patch this project and
make it full proof success, his suggestions and his instructions has served as
the major contributor towards the completion of the project.

Lipun Bai
ROLL NO. S04519COM108
PLACE: BARGARH
 Financial Statement Analysis

DECLARATION

This is to certify that the Dissertation titled “FINANCIAL STATEMENT

ANALYSIS OF ICICI BANK” submitted for the award of the Bachelor
degree of Commerce to the Sambalpur University, Jyoti Vihar, Burla,
Sambalpur embodies the result of the Bonafide research carried out by
Lipun Bai under my guidance and supervision. No part of the report has
been submitted for any other degree or diploma.

Date: 07-05-2022. Signature

Place: Bargarh. Bhanu Prakash Das
 Financial Statement Analysis

CONTENTS

Serial No. Title Of The Chapter Page No.

1 Introduction 1-1

2 Literature Review 2-2

3 Company Profile 3-5

4 Research Methodology 6-7

5 Data Analysis & 8-10

Interpretation

6 Comparative Statement 11-13

Analysis

7 Ratio Analysis 14-23

8 Findings 24

9 Suggestions 25

10 Conclusion 26

11 References 27
Introduction To Financial Statement Analysis :-

Financial analysis is the process of examining a company’s performance in the

context of its industry and economic environment in order to arrive at a decision or recommendation.
Often, the decisions and recommendations addressed by financial analysts pertain to providing capital
to companies specifically, whether to invest in the company’s debt or equity securities and at what
price. An investor in debt securities is concerned about the company’s ability to pay interest and to
repay the principal lent. An investor in equity securities is an owner with a residual interest in the
company and is concerned about the company’s ability to pay dividends and the likelihood that its
share price will increase.

Overall, a central focus of financial analysis is evaluating the company’s ability to earn a return
on its capital that is at least equal to the cost of that capital, to profitably grow its operations, and to
generate enough cash to meet obligations and pursue opportunities.

Fundamental financial analysis starts with the information found in a company’s financial
reports. These financial reports include audited financial statements, additional disclosures required
by regulatory authorities, and any accompanying (unaudited) commentary by management. Basic
financial statement analysis as presented in this reading provides a foundation that enables the analyst
to better understand other information gathered from research beyond the financial reports.

Meaning of Analysis of Financial Statements :-

The process of critical evaluation of the financial Information contained in the
financial statements in Order to understand and make decisions regarding The operations of
the firm is called ‘Financial Statement Analysis’. It is basically a study of Relationship among
various financial facts and Figures as given in a set of financial statements, and The
interpretation thereof to gain an insight into the Profitability and operational efficiency of the
firm to Assess its financial health and future prospects.

The term ‘financial analysis’ includes both ‘analysis and interpretation’. The term
analysis means simplification of financial data by methodical Classification given in the
financial statements. Interpretation means explaining the meaning and significance of the data.
These two are complimentary to each other. Analysis is useless without interpretation, and
interpretation without analysis is difficult or even Impossible.

Tools of Analysis of Financial Statements :-

1. Comparative Statements
2. Common size Statements
3. Trend Analysis
4. Ratio Analysis
5. Cash Flow Analysis

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 Financial Statement Analysis

LITERATURE REVIEW :-

Mabwe Kumbirai & Robert Webb (2010) tried to investigate the performance of South
Africa’s commercial banking sector for the period 2005-2009 in their research article on “A financial
Ratio Analysis of Commercial Bank Performance in South Africa”. They employed the financial
ratios to measure and compare the profitability, liquidity and credit quality performance of five large
South African commercial banks. They found that overall bank performance increased considerably
in first years of the analysis. They found that after financial crisis in global financial market, South
African banks tend to low profitability, low liquidity and deteriorating credit quality.

Svetlana Tatuskar (2010), in his research article took the sample of five banks (SBI, ICICI,
AXIS, HDFC, BOI) in India to compare and analysis the financial performance of banks through
Camels methodology for 2006-2010. The study concluded that the performance of the banks for the
year ended 2010 had been much better as against their performance during the previous year ended
2009. With the effect of the financial crisis in the global banking sector, the Indian banking sector
had shown extraordinary financial performance even amidst the financial crisis.
Harpreet Kaur & Neeraj Kumar Saddy (2011) in their research paper “A Comparative
Study of Non-Performing Assets of Public and Private Sector Banks” compared non-performing
assets of two sector banks. In this research paper, they explained the level and status of
nonperforming assets through 1995 to 2009 for both sector banks. They also check the level of Gross
NPAs and Net-NPA sector wize (Public and Private sector banks). They found that the extent of
NPAs is comparatively higher in public sectors banks. They concluded that reduction in NPAs is due
to the writing off bad loans by the banks.
Zohra Bi & Shyam Lal Dev Pandey (2011) tried to investigate the performance of
microfinance institutions with commercial banks in India in their research article. In their study they
took a sample of microfinance institutions in India had been selected based on their ratings given by
microfinance information exchange (MIX). Data for the microfinance institutions have been
collected from Microfinance information exchange (MIX) where few of the MFIs have started
reported their financial data. The MIX has classified the MFIs based on various parameters such as
level of disclosure, financial parameters etc and rated them accordingly. Out of the 88 MFIs in India
reported on MIX, 24 MFIs are taken as samples, these samples taken were five star rated by MIX.
The financial parameters of these MFIs are studied and compared with the financial parameters of
commercial banks and their financial performance can be analyzed. The various parameters taken for
analyzing the financial performance of MFIs and banks include: Financial structure, Profitability and
Efficiency.
M. Dhanabhakyam & M. Kavitha (2012) in their research article on “Financial
Performance of Selected Public Sector Banks in India” compared the financial performance of bank.
They explained that the banks have to re-orient their strategies in the light of their own strengths and
the kind of market in which they are likely to operate on. In the perspective of this domestic and
international development, the banking sector has to chart out a perfect path for the development in
its own. They found that banks generating high profit amidst the financial crisis in global market and
they also found Indian public sector banks should more focus to manage non-performing assets.

Gilbert Sebe-Yeboah & Charles Mensah tried to analysis of financial performance of

agriculture development bank. The PELARI (Profitability, Efficiency, Liquidity, Asset Quality, Risk
Measures and Investor analyses) model was developed for analysis by the researcher which is similar
to the CAMELS’ rating. Financial ratio analysis is employed in the analysis. Troubled signals

2
 Financial Statement Analysis

models such as the Altman zscore for non-manufacturing companies and risk index were also used to
measure risk. It was concluded from the analysis that ADB’s focus on agricultural financing is
diminishing since a sector analysis of loans and advances indicates that the agriculture sector lost its
first position to the services sector which recorded 38% compared with agriculture 29% in 2012.

Bhanwar Singh & Pawan (2016), in their research study on “Financial Performance: A
Comparative Analysis of PNB and HDFC Bank” compare the financial of banks. They took two
banks for the study, one bank belongs to public sector and other to private sector. They compare the
financial performance of banks through ratio analysis and test the hypothesis with the help of Mann-
Whitney methodology. They found that PNB face the problems to generate the income and NPAs of
PNB is increasing. The study shows that the financial performance of HDFC Bank is better than
PNB. They suggested that PNB should manage the non-performing assets in efficient way.
.

COMPANY PROFILE
ICICI Bank Limited
ICICI Bank Headquarter in Bandra Kurla Complex, Mumbai

Type- Private

Traded as- BSE: 532174

NSE: ICICIBANK
NYSE: IBN
BSE SENSEX Constituent
CNX Nifty Constituent

Industry- Banking, Financial services

Founded -05 January 1994; 25 years ago

Headquarters- ICICI Bank Towers, Bandra Kurla
complex, Mumbai, India

Area served -Worldwide

Key people - Girish Chandra Chaturvedi(Chairman)

Sandeep Bakhshi
(MD & CEO)

Products - Retail banking, corporate

banking, investment banking, mortgage
loans, private banking, wealth management, credit cards, finance and insurance

Revenue- ₹72,385.52 crore (US$10 billion) (2019)

Operating income - ₹24,741.53 crore (US$3.4 billion) (2019)

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 Financial Statement Analysis

Net income - ₹6,777.42 crore (US$940 million) (2019)

Total assets - ₹879,189.16 crore (US$120 billion),(2019)

Number of employees - 82,724(2019)

Website - www.icicibank.com

ICICI Bank Limited (Industrial Credit and Investment Corporation of India) is

an Indian multinational banking and financial services company headquartered
in Mumbai, Maharashtra with its registered office in Vadodara, Gujarat. As of 2019,
ICICI Bank is the second largest bank in India in terms of assets and market
capitalisation. 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. The bank currently has a network of 4867 branches
and 14367 ATMs across India and has a presence in 17 countries including India.
ICICI Bank is one of the Big Four banks of India. The bank has subsidiaries in the
United Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar, Oman, Dubai International Finance Centre, China and South
Africa; and representative offices in United Arab Emirates, Bangladesh, Malaysia and
Indonesia. The company's UK subsidiary has also established branches in Belgium
and Germany.

Swot Analysis of ICICI bank

Strengths in the SWOT analysis of ICICI Bank
• 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 jewellery 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

Weaknesses in the SWOT analysis of ICICI Bank

• Customer support of ICICI section is not performing well in terms of resolving
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 Financial Statement Analysis

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
Opportunities in the SWOT analysis of ICICI Bank
• 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 nonperforming assets
Threats in the SWOT analysis of ICICI Bank
• 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
Objectives Of The Study
• To know the liquidity position and solvency
• To study the profitability of ICICI Bank
• To find financial performance and efficiency use of capital employed

5
 Financial Statement Analysis

RESEARCH METHODOLOGY
In the present descriptive study is employed. an attempt has been made to measure,
evaluate and compare the financial performance of the Bank. the analysis partitioned two
side aspect of stakeholders. the shareholders wealth and other external stakeholders.
The study is based on secondary data that has been collected from annual reports of the
bank website, magazines, journals, documents and other published information. The study
covers the period of 5 years from year 2010-11 to year 2014-15. Ratio Analysis was
applied to analyze and compare the trends in banking business and financial performance.
1.8 STATISTICAL TOOLS the Researcher has used the following tools to present and
analysis data
data presentation
I. tables
II. Diagramsdata analysis I. Microsoft excel 2007
iii. Period of this study of financial ratio analysis is limited to five years from 2010 to
2015. the accounting year starts from 1 April to 31 march.

The researcher adopted the analysis of data in a manner that to combine relevance to purpose
with economy in procedure. Research design is the based define of a research problem. The
preparation of the design of the project is standard analytical of researcher favorite. It was used in
secondary data that was published already as annual reports of the bank in bank website, journals,
magazines and newspapers and other secondary data sources. this Secondary data may be already
collected and analyzed by someone else but gap is period of the study and variables which we want
to know. The study mainly connected annual financial reports that are last five years 2014-2018
company final accounts (balance sheet and profit and loss)
RESEARCH DESIGN
In the present descriptive study is employed. an attempt has been made to measure, evaluate and
compare the financial performance of the Bank. the analysis partitioned two side aspect of
stakeholders. the shareholders wealth and other external stakeholders. The study is based on
secondary data that has been collected from annual reports of the bank website, magazines,
journals, documents and other published information. The study covers the period of 5 years from
year 2014-15 to year 2017-18. Ratio Analysis was applied to analyze and compare the trends in
banking business and financial performance.
DATA COLLECTION :-
Main data of this study is based to the annual financial reports ICICI Bank from in 2010 to 2015.
also researcher used four main financial statements for ratio analysis of bank such as; balance
sheets, an income statement, cash flow statement; statement of shareholder's equity although
study strongly emphasis the first main reports
DATA ANALYSIS
The study used all important tools of ratio analysis for profitability evaluation of bank. It indicates
the different steps such Selection of financial report, Identification of balance sheet, income
statement and cash flow statement, ratio analysis, mathematical calculation, statistical analysis of
bank financial report year by year comparison and among industry First step of model, we do a
selection of financial report that means a choose of annual financial report. The annual financial
report present financial data of a company's position, operating performance, and funds flow for an
accounting period .We use the annual reporting of bank in 2014 to 2018. Second step of model,
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 Financial Statement Analysis

researcher identify the balance sheet, income statement, cash flow statement from the annual
financial report. Study used some data from balance sheets for different kind of ratio such as
liquidity ratios, asset management ratios, debt management ratios. In contrast, we was used some
sources from income statement. When analysis the ratio of profitability and debt
management ratio employment of bank income statement and balance sheet is must. however the use
of some data from the cash flow statement for ratio analysis such as market value ratio is also
possible . The third step of model, study identify the suitable ratio for profitability analysis and
evaluation the ratio such as current ratio, liquidity ratio, asset management ratio, profitability ratio,
debt coverage ratio, market value etc. All types of ratio are most important for how well a bank to
generate its assets, liquidity, revenue, expense, share holder equity profit or loss are also here . The
Forth step of model, study used the Mathematical calculation of bank. some figure from the income
statement and balance sheet. Financial calculators was used to determine the results a financial ratio
calculations a graphical analysis for evaluation of bank using Microsoft excel is employed and
finally study compares the results to manipulate objectives
SECONDARY DATA
The major source of data for this project was collected through Balance sheet and Profit and loss of
ICICI Bank account of 5 year period from 2014-2018 Descriptive research is used in this study
because it will ensure the minimization of bias and maximization of reliability of data collected. The
researcher had to use fact and information already available through financial statements of earlier
years and analyze these to make critical evaluation of the available material. Hence by making the
type of the research conducted to be both Descriptive and Analytical in nature
RESEARCH INSTRUMENTS
Study Used Secondary Data Collected From Publishers Of The Bank Final Accounts It Is Limited To
Last Five Years 2014-2018Annual Financial Reports
HYPOTHESIS OF THE STUDY
The Bank Profitability Is Improving With Constant Growth Rate

STATISTICAL TOOLS
The Researcher has used the following tools to present and analysis data presentation

I. tables
II. Diagrams
Data analysis.
III. Microsoft excel 2007

PERIOD OF THE STUDY

This study of financial ratio analysis is limited to five years from 2014 to 2018. the
accounting year starts from 1 April to 31 march.

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 Financial Statement Analysis

DATA ANALYSIS & INTERPRETATION

BALANCE SHEET OF ICICI BANK
AS ON MAR 2014, MAR 2015, MAR 2016, MAR 2017 ,MAR 2018. (RS.
IN CRORES)

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 Financial Statement Analysis

PROFIT AND LOSS ACCOUNT OF ICICI BANK FOR THE YEAR ENDED
(RS. IN CRORES)

2014 2015 2016 2017 2018

INCOME:
Interest Earned 9409.90 13784.49 22994.29 30788.34 31092.55
Other Income 3416.14 4983.14 5929.17 8810.77 7603.72
Total Income 12826.04 18767.63 28923.46 39599.11
38696.27

EXPENDITURE:

Interest Expended 6570.89 9597.45 16358.50 23484.24 22725.93

Operating 3299.15 4479.51 6690.56 8154.18 7045.11

Expenses
Total Expenses 9870.04 14076.96 23049.06 31638.42 29771.04
Operating Profit 2956 4690.67 5874.40 7960.69 8925.23
Other Provision 428.80 1594.07 2226.36 2904.59 3808.26

And Contingencies
Provision For Tax 522 556.53 537.82 898.37 1358.84
Net Profit 2012.20 2540.07 3110.22 4157.73 3758.13
Extraordinary 0.00 0.00 0.00 0.00 (0.58)
Total Income 12826.04 18767.63 28923.46 39599.11

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 Financial Statement Analysis

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 Financial Statement Analysis

FINANCIAL STATEMENT ANALYSIS:

COMPARATIVE BALANCE SHEET OF ICICI BANK FROM
2014-2015 TO 2017-2018 TABLE NO 6. 3

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 Financial Statement Analysis

COMPARATIVE INCOME STATEMENT OF ICICI BANK FROM

2013-2014 to 2017-2018

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 Financial Statement Analysis

INTERPRETATION OF ABOVE TABLES

• The capital of Company increased by 14% in 2014-15,0.8% in 2015-16,17% in

201617,and .04 % in 2017-18.This shows that there is fluctuation in the rate of
increase in the capital. In 2014-15 and 2016-17 the rate of increase in capital is more
than that of 2015-16 and 2017-18.
• There is a huge fluctuation in the rate of increase in reserves and surplus also. This
shows that Company is effectively utilizing its reserves and surplus.
• In 2014-15 deposits increase by 65%,in 2015-16 it increased by 40%,and an increase
of 6% in 2016-17.in 2017-18 deposits fall by 11%.this shows that the Company has
repaid its deposits in this year.
• The borrowings are also showing a fluctuating rate of increase in 2017-18 the
borrowings have increased at a very low rate this shows that Company 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 2014-15, an increase of 34% in 2015-16,15%
increase in 2016-17 and finally decreased by 3.25% in 2017-18.
• There has been a consistent decline in the fixed assets over years in 2014-15 and
2015-16 it decreased by 1.4 % ,increased by 5% in 2016-17 and again decreasing
by 7.5% in 2017-18.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 2014-15, rate
of increase rose to 80% in 2015-16 and then it increased at a much lower rate i.e. at
10%.this shows that the Company is effectively utilizing its working capital. there is a
fall in current assets in 2017-18 by 8 %.this is mainly due to the repayment of deposits
in the years 2017-18.

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 Financial Statement Analysis

TREND ANALYSIS
Trend Percentage of ICICI Bank From 2013-2014To 2017-2018

Percentage (%) figures

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18

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

Trend Percentage of ICICI Bank

Deposits Advances Net profit

247
245 239
231
214 219
207
187
165
160 155
127
100

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

There is a continuous increase in the deposits till the year ending 2015 followed by a downfall in
the year ending 2016 due to repayment 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.

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 Financial Statement Analysis

RATIO ANALYSIS
CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

Year Current Assets Current Current Ratio

Liabilities
(Rs. In crores) (Rs. In crores)
2013-14 21632.56 21396.16 1.01
2014-15 29549.79 25227.88 1.17
2015-16 53421.59 38228.64 1.39
2016-17 58615.76 42895.38 1.36
2017-18 54130.18 43746.43 1.23

Current Ratio of ICICI Bank

Current Ratio

1.39 1.36
1.23
1.17
1.01

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

An ideal Current 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 ICICI Bank have current assets just equal to the current liabilities which are not
satisfactory as the safety margin is very less or zero. Therefore the ICICI Bank should keep
more current assets so that it can maintain a satisfactory safety margin.

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 Financial Statement Analysis

LIQUID RATIO:
Liquid ratio is also known as ‘Quick’ or ‘Acid Test ‘Ratio. Liquid assets refer to assets which
are quickly convertible into cash. Current Assets other stock and prepaid expenses are
considered as quick assets.
Quick Ratio = Total Quick Assets
Total Current Liabilities

Quick Assets = Total Current Assets – (Inventory + Prepaid expenses)

2013-14 12929.97 21396.16 0.60

2014-15 17040.22 25227.88 0.67
2015-16 37121.33 38228.64 0.97
2016-17 38041.13 42895.38 0.88
2017-18 29966.56 43746.43 0.68

Liquid ratio of ICICI Bank

0.97
0.88

0.67 0.68
0.6

2013-14 2014-15 2015-16 2016-17 2017-18

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 favourable. 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 ICICI Bank has not managed its funds properly in this particular
period. Therefore ICICI Bank should rationally utilize its funds to maintain an ideal liquid ratio.

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 Financial Statement Analysis

EARNING PER SHARE:

Earning Per Equity Share = Net Profit after Tax –Preference
Dividend No. of Equity shares

Table no 6. 8

Year Net Income Available No. Of Equity EPS

For Shareholders Shares
( Rs. In crores ) ( Rs. In crores )
2013-14 2012.2 73.6716 27.22
2014-15 2540.07 88.9823 28.55
2015-16 3110.22 89.9266 34.59
2016-17 4157.73 111.2687 37.37
2017-18 3758.13 111.325 33.78

EPS of ICICI Bank

EPS
37.37
34.59 33.78

27.22 28.55

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:
Earnings per Share are the most commonly used data which reflects the performance and
prospects of the ICICI Bank. It affects the market price of shares.
Here the Earning Per Share is shows a persistent increase till the year 2015 after that in the year
2016 Earnings Per share is followed by a downfall due to decline in profits.

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 Financial Statement Analysis

DIVIDEND PER SHARE:

Dividend per Share = Dividend Paid To Equity Shareholders

No. Of Equity Shares

Table no 6. 9

Year Dividend Paid No. Of Equity DPS

Shares
(Rs. In crores ) ( Rs. In crores )
2013-14 632.96 73.6716 8.59
2014-15 759.33 88.9823 8.53
2015-16 901.17 89.9266 10.02
2016-17 1227.7 111.2687 11.03
2017-18 1224.58 111.325 11

DPS of ICICI Bank

DPS
11.03 11
10.02
8.59 8.53

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

Here the Dividend per Share is increasing year after year except a little decline in
2016.otherwise the dividend per share ratio of the ICICI Bank is quite satisfactory which shows
the ICICI Bank has a good dividend paying capacity.

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 Financial Statement Analysis

NET PROFIT RATIO:

Net Profit Ratio = Net Profit/Net sales X 100

Table no6. 10

Year Net Profit Sales Net Profit Ratio

( Rs. In crores ) (Rs. In crores ) (in % )
2013-14 2012.2 9409.9 21.3
2014-15 2540.07 13784.49 18.42
2015-16 3110.22 22994.29 13.52
2016-17 4157.73 30788.34 13.5
2017-18 3758.13 31092.55 12.08

Net Profit Ratio of ICICI Bank (in %)

Net Profit Ratio (in %)

21.3
18.42

13.52 13.5
12.08

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:
Although both the sales and net profit have increased during the above period but the Net Profit
Ratio of the ICICI Bank is declining continuously. This is because of the reason that net profits
have not increased in the same proportion as of the sales.

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 Financial Statement Analysis

OPERATING PROFIT RATIO:

Operating Profit Ratio = Operating Profit/ Net Sales X 100

Table no 6. 11

Year Operating Sales Operating Profit

Profit
(Rs. In crores) (Rs. In crores) Ratio (in %)
2013-14 2956 9409.9 31.41
2014-15 4690.67 13784.49 34.02
2015-16 5874.4 22994.29 25.54
2016-17 7960.69 30788.34 25.85
2017-18 8925.23 31092.55 28.7

Operating Profit Ratio of ICICI Bank (in %)

Operating Profit Ratio (in %)

34.02
31.41
28.7
25.54 25.85

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:
In the year 2012&2013 the operating profit is 31.41% & 34.02% respectively. After that it has
been consistently declined from the year 2014 till 2015 and again gaining momentum in 2016.
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 ICICI
Bank should check on unnecessary operating expenses to correct this situation and to provide a
sufficient return.

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 Financial Statement Analysis

RETURN ON NET WORTH:

Return on Net Worth = Net Profit After Interest And

Tax / Shareholder’s Funds x 100

Table no 6. 12
Year Net Profit After Shareholder's Fund Return On Net
Interest And Tax Worth (in %)
( Rs. In crores ) ( Rs. In crores )
2013-14 2012.2 12899.97 15.54
2014-15 2540.07 22555.99 11.26
2015-16 3110.22 24663.26 12.61
2016-17 4157.73 46820.21 8.88
2017-18 3758.13 49883.02 7.53

Return On Net Worth of ICICI Bank

(in %)
Return On Net Worth (in %)
15.54
12.61
11.26
8.88
7.53

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:
The net profit after interest and tax have increased slowly till the year 2015 followed by a
downfall due to high interest payments, operating expenses and taxation liability. Consequently
the net worth ratio has declined considerably and has reduced to more than half in the year 2016
than it was in 2012.

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 Financial Statement Analysis

RETURN ON CAPITAL EMPLOYED:

Table no 6. 13

Year Net Profit Before Capital Employed Return On Capital

Interest And Tax Employed (in %)
(Rs. In crores) (Rs. In crores)
2013-14 9098.09 146263.25 6.22
2014-15 12694.05 226161.17 5.61
2015-16 20006.54 306429.48 6.52
2016-17 28540.34 356899.69 7.99
2017-18 27842.9 335554.53 8.29

Return On Capital Employed of ICICI Bank (in %)

Return On Capital Employed (in %)
7.99 8.29

6.22 6.52
5.61

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:
The above table exhibits the return on capital employed ratio of the ICICI Bank for last five
years. This ratio measures the earning of the net assets of the business. The ratio was 6.22% in
year 2012. After that it raised to the tune of 5.61%,6.52%,7.99% and 8.29% in year 2013, 2014,
2015 and year 2016 respectively. It lead to the conclusion ICICI Bank rising but very little
proportion of return on capital employed.

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 Financial Statement Analysis

DEBT- EQUITY RATIO:

Table no 6. 14

Year Debt Equity Debt Equity Ratio

(Rs. In crores) (Rs. In crores)
2013-14 154759.45 12899.97 11.99
2014-15 228832.96 22555.99 10.14
2015-16 319994.86 24663.26 12.97
2016-17 352974.87 46820.21 7.53
2017-18 329417.94 49883.02 6.6

Debt Equity Ratio of ICICI Bank

Debt Equity Ratio
12.97
11.99
10.14

7.53
6.6

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

The ratio shows the extent to which funds have been provided by long-term creditors as
compared to the funds provided by the owners. Here the Debt-Equity ratio for the above period
is always high. This shows that the ICICI Bank is more relying on outside funds as compared to
internal sources of capital, in its capital structure. From the long-term lenders point of view this
ratio is not satisfactory.

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 Financial Statement Analysis

FINDINGS
• Ratios are means for presenting numerical relationships between items or groups of

items. A ratio is determined by dividing one item in a relationship with the other.
• Generally, financial ratios are computed from financial statements and so ratios developed for an
analysis of a firm’s performance and financial position are subject to the same limitations, which
are present in the accounting statements
themselves.
• Ratios are used in the analysis of financial statements of a business in order to reveal underlying
economic trends in its activities and to discover its STRENGTHS AND WEAKNESSES as
compared with the trends of sister companies.
• The working capital is increasing in comparison to last year which is good for the liquidity of the
company.
• During the year, the ICICI Bank has pursued a strategy of prioritizing capital conservation,
liquidity management and risk containment given the challenging economic environment. This is
reflected in the ICICI Bank’ strong capital adequacy and its focus on reducing its wholesale term
deposit base and increasing its CASA ratio. The ICICI Bank is maintaining excess liquidity on an
ongoing basis. The ICICI Bank has also placed strong emphasis on efficiency improvement and
cost rationalization. The ICICI Bank continues to invest in expansion of its branch network to
enhance its deposit franchise and create an integrated distribution network for both asset and
liability products.
• In line with the above strategy, the total deposits of the ICICI Bank were Rs. 218,348 crore (US$
43.0 billion) at March 31, 2016, compared to Rs. 244,431 crore (US$ 48.2 billion) at March 31,
2015. The reduction in term deposits by Rs. 24,970 crore (US$ 4.9 billion) was primarily due to
the ICICI Bank’ conscious strategy of paying off wholesale deposits. During Q4-2016, total
deposits increased by Rs. 9,283 crore (US$ 1.8 billion), of which Rs. 5,286 crore (US$ 1.0 billion),
or about 57%, was in the form of CASA deposits. The CASA ratio improved to 28.7% of total
deposits at March 31, 2016 from 26.1% at March 31, 2015.
• The branch network of the ICICI Bank has increased from 755 branches at March 31, 2014 to
1,438 branches at April 24, 2016. The ICICI Bank is also in the process of opening 580 new
branches which would expand the branch network to about 2,000 branches, giving the ICICI Bank
a wide distribution reach in the country.
• In line with the strategy of prioritizing capital conservation and risk containment, the loan book
of the ICICI Bank decreased marginally to Rs. 218,311 crore (US$ 43.0 billion) at March 31, 2016
from Rs. 225,616 crore (US$ 44.5 billion) at March 31, 2015.
• Liquidity position: The liquid ratio of the ICICI Bank in the year 2012,2013 and 2016 is
0.60,0.67and 0.68 respectively and the year 2014 and 2015 liquid ratio is 0.97 and 0.88
respectively which is close to 1.Though it is not equal to the ideal liquid ratio of 1:1 but still its
under control. So in nut shell, it can be concluded that the liquidity position of the ICICI Bank is
quite satisfactory.
• Capital adequacy and return on capital employed The ICICI Bank’s capital adequacy at March
31, 2016 as per Reserve ICICI Bank of India’s revised guidelines on Basel II norms was 15.5%
and Tier-1 capital adequacy was 11.8%, well above RBI’s requirement of total capital adequacy
of 9.0% and Tier-1 capital adequacy of 6.0%. The above capital adequacy takes into account the
impact of dividend recommended by the Board. Also the capital is being effectively utilized in the
ICICI Bank as it shows better return on capital employed over years.

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 Financial Statement Analysis

• Asset quality: At March 31, 2016, the ICICI Bank’s net non-performing asset ratio was 1.96%.
During the year the ICICI Bank restructured loans aggregating to Rs. 1,115 crore (US$ 220
million).
• Dividend on equity shares Since the dividend per share has shown a promising increase for the
period under study. It shows that the ICICI Bank is following a sound dividend policy and is
capable of distributing higher dividends. in this way the investors will feel investing in capital of
the ICICI Bank a much beneficial option and will be reluctant to withdraw capital for a long time.
• Earnings per share The earnings per share for the period under study also show a promising
increase. it suggests that ICICI Bank has better profitability position and in future it can be a better
or attractive channel of investment for shareholders.

SUGGESTIONS
1) The company should concentrate more on the Cash and Bank Balance side. As the Reserves
and Surplus are decreasing year by year whereas the Debts / Loans
are increasing. It should be controlled.
2) ICICI Bank has been paid the major portion of its earnings as dividend when compared to
previous years (2016-17). The enterprise has to retain some more amounts of its earnings for
the future use. The enterprise may have some
extension plans for future.
3) ICICI Bank will have to consider the steep increase in the Current Liabilities in financial year
2015-16. The Firm should take measures to control and repay them
as far as possible.
4) The company should keep sufficient cash or bank balance in order to meet its liability
immediately. Otherwise it will adversely affect the liquidity position of
the company.
5) There should be a proper management for the effective utilization of Current

Assets and Fixed Assets in order of making sales.

6) ICICI Bank should develop a proper method for identifying budgeted sales. The raw material
consumption is to be controlled according to the budgeted sales.
This will helps to increase their operating profit as well as gross profit.
7) The company should focus on the debtors side, as the number of debtors goes on increasing
each year. Increasing number of debtors leads to lower working
capital.
8) The company should adopt proper sales strategy and their collection facilities.
9) A formal Inventory policy should be drawn out in respect of Raw Materials, as it is a critical
area for the Company The overall profitability and efficiency of the business should enhance.
Otherwise the business cannot obtain satisfactory return on capital invested and return on Total
Assets.

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 Financial Statement Analysis

CONCLUSION
My experience with ICICI Bank Ltd. is outstanding. While working in ICICI Bank I found that
this bank has developed manifold in short period of time due to facilities and services provided
to their customer and this growth rate can be keep it up if they start to go in semi-urban areas. In
last couple of years they have opened new many branches and they should open many more. The
working staffs are very co-operative in nature and due to that the bank will also get good benefit.
ICICI Bank has provided their customer Net-banking facilities and due to that transactions are
done fast. Charges at ICICI Bank are when I compare it with Yes bank and ICICI bank. Charges
are high because ICICI Bank provides more variety of account to its customer. And when I
compare ICICI Bank to HDFC bank charges of ICICI Bank is less than HDFC
bank.
ICICI Bank also provide ATM services 24 hours, also give free balance enquiry To its account
holder , it also provide addition services to its account holders like bill payment , tax payment,
mobile all this addition services are free of cost . But ICICI
Bank competitor charge for this services.
By analyzing all this statistical tools, conclusion can be derived that ICICI Bank is one of the
good option which investor can choose. Study reveals that ratios indicate investors will gain in
near future.

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 Financial Statement Analysis

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[10] http://www.icicibank.com

[11] http://moneycontrol.com

[12] http://www.rbi.org

[13] From Google.com

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