A STUDY ON

FINANCIAL ANALYSIS OF ICICI BANK LTD

1. INTRODUCTION

1.1.1 Meaning of Financial Statements

Financial statements check with such statements which includes monetary facts
approximately an organization. They report profitability and the monetary role of the
commercial enterprise on the end of accounting length. The team monetary announcement
consists of as a minimum two statements which the accountant prepares on the stop of an
accounting length. The statements are:

• The Balance Sheet

• Profit And Loss Account.

1.1.2 What is Financial Analysis?

The procedure of reviewing and analyzing an organization’s monetary statements to

make higher economic decisions is called the analysis of monetary statements. In other
words, financial analysis is the procedure of determining the financial strengths and
weaknesses of the entity by way of setting up the strategic relationship among the gadgets of
the stability sheet, income and loss account, and different economic statements.

1.1.3 Meaning of Financial Analysis:

The term monetary evaluation is also known as ‘evaluation and interpretation of

monetary statements’ refers back to the method of figuring out financial electricity and
weakness of the firm via setting up strategic dating between the objects of the Balance Sheet,
Profit and Loss account and other operative records.

The first mission of economic analysis is to pick out the information relevant to the selection
under consideration to the full facts contained in the monetary announcement. The2nd step is
to arrange the statistics in a manner to focus on large relationship. The very last step is
interpretation and drawing of inference and conclusions. Financial statement is the technique
of selection, relation and evaluation.
1.2 Scope of Financial Analysis:

The purpose of financial Statement Analysis is to assess the past, modern-day, and
future performance and economic function of the enterprise for the motive of creating
investment, credit score, and different monetary choices.

1.3 Features of Financial Analysis:

1. To present a complex fact contained in the financial declaration in easy and

comprehensible shape.
2. To classify the objects contained in the financial announcement in handy and rational
agencies.
3. To make contrast between numerous organizations to attract numerous conclusions.

1.4 Purpose of Analysis of financial statements:

1. To know the earning capacity or profitability.

2. To know the solvency.
3. To know the financial strengths.
4. To know the capacity of payment of interest & dividends.
5. To make comparative study with other films.
6. To know the trend of business.
7. To know the efficiency of company.
8. To provide useful information to company.

1.5 Procedure of Financial Statement Analysis:

The following procedure is adopted for the analysis and interpretation of financial statement:

1. The analyst ought to acquaint himself with concepts and postulated of accounting He
must recognize the plans and guidelines of the control in order that he may be capable to
discover whether those plans are nicely finished or now not.

2. The volume of analysis needs to be decided so that the sector of labor can be Decided. If
the purpose is discovered. Earning potential of the agency then analysis of Profits
statement may be undertaken. On the other hand, if monetary function is to be studied
then stability sheet analysis can be vital.
3. The monetary statistics be given in announcement must be identified and rearranged. It
Will contain the grouping comparable information below same heads. Breaking down of
men or woman additives of statement according to nature. The data is decreased to a
popular shape.

4. A dating is established amongst monetary statements with the help of equipment &
strategies of analysis together with ratios, developments, commonplace size, fund glide
etc.

5. The statistics is interpreted in a easy and understandable way. The significance and
software of monetary records is explained for help in selection making.

1.6 Importance of Financial Analysis:

The analysis of financial statement is crucial for the following reasons.

1. The shares investment and holding.

2. Plans, decisions and management.
3. Providing credit.
4. Decisions on investments.

1.7 TYPES OF FINANCIAL ANALYSIS:

1. Horizontal Analysis:

Horizontal analysis is used within the evaluation of an agency's monetary statements

over a couple of intervals. It is usually depicted as percentage growth over the equal line item
in the base year. Horizontal analysis allows monetary assertion customers to easily spot
developments and increase patterns.

2. Vertical Analysis:

Vertical analysis is a technique of economic assertion evaluation in which every line

object is listed as a percent of a base parent in the declaration. Thus, line gadgets on an
earnings announcement can be said as a percentage of gross income, whilst line gadgets on a
stability sheet can be stated as a percentage of overall belongings or liabilities, and vertical
evaluation of a cash go with the flow declaration suggests every cash influx or outflow as a
percentage of the total coins’ inflows.
 3. Trend Analysis:

Trend analysis is a method utilized in technical evaluation that attempts to predict

destiny inventory fee moves primarily based on these days found trend statistics. Trend
analysis uses historical facts, which includes price moves and exchange extent, to forecast the
lengthy-time period route of marketplace sentiment.

4. Liquidity Analysis:

Liquidity ratio evaluation facilitates in measuring the short-term solvency of a

commercial enterprise. This way it enables in measuring a corporation's potential to meet its
brief-time period obligations. Thus, liquidity shows how fast assets of a business enterprise
get transformed into coins.

5. Solvency Analysis:

Solvency is the ability of an agency to fulfill its lengthy-time period debts and other
economic obligations. Solvency is one measure of an employer's economic health, because it
demonstrates an agency's capacity to control operations into the foreseeable future. Investors
can use ratios to investigate a company's solvency.

6. Profitability Analysis:

Profitability analysis is a part of company resource planning (ERP) that permits

administrators to forecast the profitability of a suggestion or optimize the profitability of a
current task.

7. Variance Analysis:

Variance analysis is the examiner of deviations of real behaviors as opposed to

forecasted or planned behaviors in budgeting or control accounting. This is basically involved
with how the difference of real and deliberate behaviors indicates how enterprise overall
performance is being impacted.

8. Accounting Analysis:

Account analysis is a procedure wherein certain line gadgets in an economic transaction

or declaration are carefully tested for a given account, frequently via a trained auditor or
accountant. An account evaluation can help pick out tendencies or provide a demonstration of
how a particular account is appearing.

1.8 Methods/Tools of Financial Analysis:

A number of techniques can be used for the motive of analysis of economic statements.
These are also termed as techniques or equipment of financial analysis. Out of these, and
corporation can pick the ones strategies which can be appropriate to its requirements. The
fundamental strategies of financial analysis are: -

1. Comparative financial statements

2. Ratio Analysis
3. Cash flow statement.

1.8.1 Comparative financial statement:

Tools for comparison of financial statements:

Comparative economic statement is a tool of economic evaluation that depicts alternate

in every item of the financial announcement in each absolute amount and percent term, taking
the object in preceding accounting duration as base.

Comparison and analysis of financial statements may be carried out using the following tools:

1. Comparative Balance Sheet:

The comparative balance sheet shows boom and lower in absolute phrases in addition to
chances, in numerous belongings, liabilities and capital. A comparative analysis of balance
sheets of duration gives information regarding progress of the business firm. The main
purpose of comparative stability sheet is to degree the fast- term and long-term solvency
position of the business.
2. Comparative Income Statement:
Comparative earnings announcement is prepared by using taking figures of or more than
accounting intervals, to permit the analyst to have particular understanding about the
development of the business. Comparative earnings statements facilitate the horizontal
analysis considering each accounting variable is analyzed horizontally.

1.9 Ratio Analysis:

Meaning:
Absolute figures expressed in monetary statements via themselves are meaningfulness.
These figures regularly do not carry a whole lot that means unless expressed in relation to
other figures. Thus, it can be said that the relationship between figures, expressed in
arithmetical terms is known as a ratio.

Types of Ratios:
1. Liquidity Ratios
2. Profitable Ratios
3. Leverage Ratios
4. Activity or Efficiency Ratios.
1 Liquidity Ratios:
A crucial group of financial indicators known as liquidity ratios is used to assess a
debtor's capacity to settle current debt commitments without the need for outside funding.
The measurement of indicators such as the current ratio, quick ratio, and operating cash flow
ratio allows us to calculate liquidity ratios, which assess a company's capacity to satisfy debt
obligations as well as its margin of safety.
A. Current Ratio
B. Quick Ratio
C. Cash Ratio

Current Ratio:
The Current ratio is a liquidity ratio that measures an agency’s capacity to pay short-term
responsibilities or those due within 365 days. It tells traders and analysts how a company can
maximize the contemporary assets on its stability sheet to satisfy its cutting-edge debt and
different payables.

Quick Ratio:
The Quick ratio is a hallmark of an organization’s brief-time period liquidity role and
measures an enterprise’s capability to fulfill its brief-term responsibilities with its most liquid
assets. Quick ratio is also called as Acid Test Ratio.

Cash Ratio:
 The cash ratio is a measurement of a business enterprise's liquidity. It particularly
calculates the ratio of an enterprise's overall coins and coins equivalents to its modern-day
liabilities. The metric evaluates corporation's capability to repay its short-term debt with cash
or near-coins sources, together with without difficulty marketable securities. This record is
useful to lenders when they decide how a whole lot cash, if any, they would be willing to
mortgage a corporation.

2.Profitable Ratio:

Using information at a single point in time, profitability ratios are a class of financial
measurements that are used to evaluate a company's capacity to generate profits in relation to
its revenue, operating costs, balance sheet assets, or shareholders' equity over time.
A. Gross Profit Ratio
B. Net Profit Ratio
C. Operating Profit Ratio

Gross Profit Ratio:

Gross profit is the amount of money a business makes after deducting costs for
producing, distributing, and selling its goods or services. A company's income statement will
show gross profit, which is derived by deducting cost of goods sold (COGS) from revenue
(sales). The income statement of a business will contain these numbers. Sales profit or gross
income are other names for gross profit.

Net Profit Ratio:

The net profit ratio, also known as the net profit margin ratio, is a profitability statistic
that assesses how much money is brought into the company relative to its earnings.

Operating Profit Ratio:

Operating profit is divided by total sales to create an operating profit ratio. This metric
displays the proportion of operating profit a business generates (before subtracting tax and
interest).

The operating Profit Ratio measures how an awful lot profit an enterprise makes on a
greenback of income after buying variable expenses of production, including wages and raw
materials, but before paying hobby or tax. It is calculated by means of dividing an employer’s
working profits by its internet income.

3.Levarage Ratios:
A leverage ratio is one of many financial metrics that evaluates a company's capacity to
fulfil its financial commitments. In order to estimate how changes in output would impact
operating profits, a company's mix of operating expenses may also be measured using a
leverage ratio.
A. Debt Ratio
B. Debt Equity Ratio
C. Interest Coverage Ratio
D. Proprietary Ratio

Debt Ratio:
The Term "debt ratio" refers to a financial ratio that assesses how much leverage a
business has. The ratio of total debt to total assets, represented as a decimal or percentage, is
known as the debt ratio. The percentage of a company's assets that are financed by debt is one
way to understand it. A ratio higher than one indicates that a significant percentage of a
company's debt is supported by assets, indicating that the corporation has more obligations
than assets.

Debt Equity-Ratio:
The debt-to-equity (D/E) ratio, which measures a company's financial leverage, is
determined by dividing all of its obligations by the value of its shareholders. An essential
statistic in corporate finance is the D/E ratio. It gauges the proportion of a company's
operations that are financed by debt as opposed to completely owned assets.

Interest Coverage Ratio:

A debt and profitability measure called the interest coverage ratio is used to assess how
easily a business can pay the interest on its existing debt. Divided by interest expense during
a specific time period, a company's earnings before interest and taxes (EBIT) yields the
interest coverage ratio.
Proprietary Ratio:
The proprietary ratio, sometimes referred to as the net worth ratio or equity ratio, is used
to assess how strong a company's financial structure is. To calculate it, divide total assets by
stockholders' equity.
4.Activity or Efficiency Ratio:
Analysts utilize efficiency ratios, commonly referred to as activity ratios, to assess a
company's short-term or current performance. All of these ratios quantify business activities
by using data from a company's current assets or current liabilities.
A. Working Capital Turnover Ratio
B. Total Assets Turnover Ratio
C. Debtors Turnover Ratio
D. Fixed Assets Turnover Ratio

Working Capital Turnover Ratio:

 working capital turnover Ratio assesses how well a business uses its working capital to
promote sales and expansion. Working capital turnover, also known as net sales to working
capital, gauges the connection between the resources utilized to finance an organization's
operations and the revenues that organization generates to maintain operations and make a
profit.

Total Assets Turnover Ratio:

A company's sales or revenues are compared to the value of its assets using the asset
turnover ratio. The asset turnover ratio can be used to gauge how effectively a business uses
its assets to produce income.
The more effectively a corporation uses its assets to generate revenue, the greater its
asset turnover ratio. A corporation is not effectively employing its assets to produce sales if it
has a low asset turnover ratio, on the other hand.

Debtors Turnover Ratio:

Debtors turnover Ratio is another name for the Receivables Turnover Ratio. The
turnover ratio demonstrates how rapidly credit sales are turned into cash. This ratio assesses a
company's effectiveness in controlling and collecting client credit.
Fixed Assets Turnover Ratio:
analysts typically utilize the fixed asset turnover ratio (FAT) to gauge operating
performance. This efficiency ratio assesses a company's capacity to generate net sales from
its fixed-asset investments, specifically property, plant, and equipment (PP&E). It compares
net sales (income statement) to fixed assets (balance sheet) (PP&E).

OBJECTIVES AND ADVANTAGES or USES OF RATIO ANALYSIS:

1. Helpful in analysis of economic statements.
2. Simplification of accounting facts.
3. Helpful in comparative examine.
4. Helpful in finding the weak spots of the business.
5. Helpful in forecasting
6. Estimate about the trend of the commercial enterprise
7. Fixation of best requirements
8. Effective manipulate
9. Study of monetary soundness.

LIMTATIONS OF RATIO ANALYSIS:

1. False accounting information gives false ratios

2. Comparisons no longer possible of different firms undertake distinct
3. Accounting policies.
4. Ratio analysis will become much less powerful because of charge stage
5. Trade
6. Ratios may be misleading inside the absence of absolute statistics.
7. Limited use of an unmarried Ratio.
8. Window-Dressing
9. Lack of right requirements.
10. Ratio on my own are not good enough for correct conclusions
11. Effect of personal ability and bias of the analyst.

1.10 CASH FLOW STATEMENT:

 A cash – flow statement is a statement showing inflows (receipts) and outflows
(payments) of cash during a particular period. In other words, it is a summary of sources and
applications of each during a particular span of time.

OBEJECTIVES OF CASH FLOW STATEMENT:

1. Useful for Short-Term Financial Planning.
2. Useful in Preparing the Cash Budget.
3. Comparison with the Cash Budget.
4. Study of the Trend of Cash Receipts and Payments.
5. It explains the Deviations of Cash from Earnings.
6. Helpful in Ascertaining Cash Flow from numerous separately.
7. Helpful in Making Dividend Decisions.

.
 2. INDUSTRY PROFILE & COMPANY PROFILE
2.1.1 Definition of Banking:

A bank is a financial institution that accepts deposits from the public and creates a
demand deposit while simultaneously making loans.

Banks are playing a key role in financial stability and the economy of a country, most
countries have institutionalized a system known as fractional reserve banking, banks are
generally subject to minimum capital requirements based on an international set of capital
standards, the Basel accords.

ORIGIN OF THE WORD “BANK”

One perspective claim that the Italian business houses operating in the unrefined banking
sector were known as Banchi Bancheri. Another way of view holds that the word "banking"
originates from the German word "brank," which signifies a stack or pile. The issuance of
paper money by the government was known as raising a bank in England.

ORIGIN OF BANKING

Banking became important because it offers a secure location to store money. This
secure location eventually developed into modern commercial banks, which are financial
entities that receive deposits and provide loans.

In India, modern banking began in the middle of the 18th century. Among the early banks
were the General Bank of India, founded in 1786 but failing in 1791, and the Bank of
Hindustan, founded in 1786 and liquidated in 1829–1832.

2.1.2 BANKING SYSTEM IN INDIA

The banking system plays an important role in promoting economic growth not only by
channeling savings into investments but also by important allocative efficiency of resources.
The banking system of India consists of the central bank (Reserve bank of India- RBI),
commercial bank, cooperative bank and development banks (development finance
institutions). These institutions, which provides a meeting ground for the savers and the
investors from the core of Indian’s financial sector.

The banking device of India must not only be Hassel loose however it must be able to meet
new challenges posed by means of the generation and every other external and inner element.

For the past 3 a long time India’s banking device has numerous extraordinary Achievements
to its credit. The maximum hanging its extensive attain. Indian banking gadget has reached
even to the remote corners of the United States. This is one of the foremost reasons of
Indian’s increase technique.

2.1.3 HISTORY OF BANKNG IN INDIA

The history of Banking in India dates back to before India got independence in 1947 and
is a key topic in terms of questions asked in various Government exams.

During the times of East India Company, it was the turn enterprise residence to hold on the
banking business. The General Bank of India became the primary joint inventory bank to be
set up in the year 1786. The bank of Hindustan is reported to have persevered till 1906.

In the first half of the 19th century the East India Company hooked up three banks, the Bank
of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in 1843. These
three banks also known as presidency banks had been the unbiased devices and functional
nicely. These three banks were amalgamated in 1920 and new financial institution, the
Empirical Bank of India was set up on 27th January, 1921.

With the passing of the State Bank of India act in 1955 the task of the imperial Bank of India
become taken over through the newly constituted SBI. The Reserve Bank of India that is the
central bank turned into established in April, 1935 via passing Reserve bank of India act
1935. The principal workplace of RBI is in Mumbai and it manipulate all of the different
banks in us.

Number of banks with the Indian control were installed in the usa particularly, Punjab
National Bank Ltd. Bank of India Ltd. Bank of Baroda Ltd. Canara Bank Ltd. On 19th 1969,
14 main industrial non-public quarter banks have been taken through the government.
The first financial institution in India, via conservative, was established in 1786. From 1786
until nowadays, the banking area improvement may be labeled into 3 stages.

Phase-1_ The Early phase which lasted from 1771 to 1969.

Phase-2_ The Nationalization section which lasted from 1969 to 1991.

Phase-3_ The Liberalization or the Banking area Reforms section which started out in 1991
and countries to flourish till date.

The General Bank of India became set up inside the year 1786. Next got here Bank of
Hindustan and Bengal Bank. The East India Company installed Bank of Bengal (1809), Bank
of Bombay (1840) and Bank of Madras (1843) as independent devices and referred to as its
Presidency Banks.

These three banks have been amalgamated in 1920 and imperial Bank of India turned into
established which commenced as non-public shareholders banks, on the whole Europeans
shareholders.

In 1865 Allahabad Bank was established and primary time exclusively by using Indians,
Punjab National Bank Ltd. Changed into set up in 1894 with headquarters at Lahore.
Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara
Bank, Indian Bank, and Bank of Mysore were installation. Reserve Bank of India came in
1935.

Government took foremost steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with great banking centers on a huge scale
mainly in rural and semi-city areas. It shaped State Bank of India to behave because the
foremost agent of RBI and deal with banking transactions of the Union and State Government
all over the u. S ...

The following are the stairs taken by using the Government of India to Regulate Banking
Institutions in the Country.

1. 1949: Enactment of Banking Regulation Act.

2. 1955: Nationalization of State Bank of India.
3. 1959: Nationalization of SBI subsidiaries.
4. 1961: Insurance cover extended to deposits.
5. 1969: Nationalization of 14 major banks.
6. 1971: Creation of Credit Guarantee Corporation.
7. 1975: Creation Regional Corporation.
8. 1980: Nationalization of Several Banks with deposits over 200cr.

After the Nationalization of Banks, the branches of the public quarter financial institution
India rose to about 800% in deposits and advances took a big bounce by way of eleven,000%.
Banking inside the sunshine in the Government Ownership gave the general public implicit
religion and great self belief approximately the sustainability of those establishments.

This segment has brought many extra merchandise and centers in the banking quarter on its
reforms measure. In 1991, under the Chairmanship of M Narasimham, a committee was set
up through his name which labored for the liberalization of banking practices.

The us of a is flooded with foreign banks and their ATM stations. Efforts are being put to
give an excellent carrier to customers. Phone banking and net banking is added. The entire
gadget has become extra convenient and speedier. Time is given more significance than
money.

The economic machine of India has shown a Great deal of resilience. It is sheltered from any
crisis trigged by using any outside macroeconomics surprise as different East Asian Countries
suffered. This is all because of a flexible change price regime, the foreign reserves are high,
the capital account is not but absolutely convertible, and banks and their clients have
confined foreign exchange exposure.

BANKING STRUCTURE IN INDIA

SCHEDULED BANKS IN INDIA

(1) Scheduled commercial Banks

Foreign Banks in Regional Rural

Public Sector Banks Private Sector Banks
India Banks
1. Nationalized Bank
1. Old Private
2. Other Public Sector
Banks
Banks (IDBI)
2. New Private
3. SBI And Its
Banks
Associates

2. Scheduled Cooperative Banks

 Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks

Public Sector Banks

Banks in the public sector are those that the government owns. These banks are
governed by the state. In India, 6 additional banks were nationalized in 1980 after 14 banks
were already done so in 1969. Thus, there were 20 nationalized banks in 1980. In India, there
are now 26 public sector banks. Six of these 19 nationalized banks (STATE BANK OF
INDIA ALSO MERGED RECENTLY) are a part of the SBI & Associate group, while I
Bank (IDBI Bank) is categorized as an additional public sector bank. The fundamental goal
of both of these banks is to promote public welfare.

Nationalized banks Other Public Sector SBI & Its Associates

1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of Maharashtra
5. Canara Bank
6. Central Bank of India
7. Corporation Bank
8. Dena Bank
9. Indian Bank
10. Indian Overseas Bank
11. Oriental Bank of
Commerce
Banks
1. State Bank of India
IDBI (Industrial 2. State Bank of
Development Bank of Hyderabad
India) Ltd. 3. State Bank of Mysore
4. State Bank of Patiala
5. State Bank of
Travancore
6. State Bank of Bikaner
and Jaipur
(State Bank of Saur

12. Punjab & Sind Bank Astra merged with

13. Punjab National Bank SBI in the year 2008

14. Syndicate Bank and State Bank of

15. UCO Bank Indore in 2010)

16. Union Bank of India

17. United Bank of India
18. Vijaya Bank
Private Sector Banks

Owned and operated by the private sector, these banks are in the private sector. Several
banks throughout the nation, including ICICI Bank, HDFC Bank, etc. A person has authority
over the way their banks are prepared up to the portion of the banks he owns.

Private banking has been a tradition in India ever before the country's financial system was
established. The first private bank to open in the country's private sector. Such as IndusInd
Bank. In terms of private banks in India, IDBI is the tenth-largest development bank in the
world and has supported top-tier institutions there.

Housing Development Finance Corporation Limited opened the first private bank in India to
be given in-principal authorization by the Reserve Bank of India.

Foreign Banks in India

Abroad banks or foreign banks in India, indicating a global bank is a financial institution
that operates outside of its native country of the United States of America and offers financial
services to clients around the world. A specific kind of global bank that is obligated to follow
the laws of both its home and host United States is a branch of a foreign financial institution.

Cooperative Banks in India

Based on the responsibilities given to cooperatives, the expectations placed on them,

their size, and the number of offices they operate, it can be concluded that cooperative banks
play a significant part in the Indian financial system.

The cooperative movement may have started in the West, but no other country in the world
comes close to matching the significance that these banks have come to have in India. Even
today, India's cooperative banks are crucial to rural lending. Due to the dramatic rise in the
number of primary co-operative banks, the business of cooperative banks in metropolitan
areas has also expanded phenomenally in recent years.

The Co-operative Societies Act governs the registration of cooperative banks in India. The
RBI also controls the cooperative bank. The Banking Regulations Act of 1949 and the
Banking Laws (Co-operative Societies) Act of 1965.
Rural banks in India

Since the beginning of the banking industry in India, rural banking has existed. The
agriculture industry was the main emphasis of rural banks at the time. India's regional rural
banks have spread throughout the entire nation, aiding in the development of the nation.

In India, SBI operates 30 Regional Rural Banks, or RRBs. The SBI rural banks are dispersed
across 13 states, from North East to Himachal Pradesh and Kashmir to Karnataka. There are
2349 branches throughout all of SBI's regional rural banks in India (16%). There are
currently 14,475 rural banks in India, 2126 of which (91%) are situated in remote regions.

NABARD

National Bank for Agriculture and Rural Development (NABARD) is a development

bank in the sector of Regional Rural Banks in India. It provides and regulates credit and gives
services for the promotion and development of rural sectors mainly agriculture, small scale
industries, cottage and village industries, handcrafts. It also finances rural crafts and allied
rural economic activities to promote integrated rural development. It helps in securing rural
prosperity and its connected matters.
2.2 COMPANY PROFILE

2.2.1 INTRODUCTION OF ICICI BANK

ICICI Bank Limited is an Indian multinational financial institution and monetary

offerings employer head quartered in Vadodara. It offers a wide variety of banking
merchandise and financial services for company and retail clients through a ramification of
shipping channels and specialised subsidiaries inside the regions of funding banking, life,
non- life insurance, undertaking capital and asset management.

The Bank has a community of 5,275 branches and 15,589 ATMs throughout India and has a
presence in 17 countries. The bank has subsidies within the United Kingdom and Canada;
branches in United States, Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai International
Finance Centre, China and South Africa.

History of ICICI

1. 1955: The Industries Credit and Investment Corporation of India Limited (ICICI)
was incorporated at the initiative of World Bank.
2. 1956: ICICI declared its first dividend of 3.5%
3. 1958: Mr. G.L Mehta appointed the second Chairman of ICICI Ltd.
 4. 1960: ICICI Building at 163, Back by Reclamation, inaugurated.
5. 1961: The first West German loan of DM 5 million from Kredianstalt obtained.
6. 1967: ICICI made its first debenture issue for Rs.6crore, which was oversubscribed.
7. 1969: The first two regional offices in Calcutta and Madras set up.
8. 1972: The second entity in India to set up merchant banking services, Mr. H T.
Parekh appointed the third Chairman of ICICI.
9. 1977: ICICI sponsored the formation of Housing Development Finance
Corporation. Managed its first equity public issue.
10. 1978: Mr. James Raj appointed the fourth Chairman of ICICI.
11. 1979: Mr. Siddhartha Mehta appointed the fifth Chairman of ICICI.
12. 1982: ICICI became the first ever Indian borrower to raise European Currency
Units,
13. 1984: Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
14. 1985: Mr. N. Vague appointed the seventh Chairman and Manager Director of
ICICI
15. 1986: ICICI became the Indian institution to receive ADB Loans: ICICI, along with
UTI, set up Credit Rating Information services of India Limited.
16. 1987: ICICI signed a loan agreement for Sterling Pound 10 million loan by CDC
for financing projects in India.
17. 1988: Promoted TDICI – India’s first venture capital company.
18. 1999: ICICI launched retail finance – car loans, house loans and loans for consumer
durables.
19. 2000: ICICI Bank became the first commercial bank from India to list its stock on
NYSE.
20. 2001: ICICI acquired Bank of Madura. Bank of Madura was a Chattier bank, and
had acquired Chettinad Mercantile Bank.
21. 2002: The merger was approved by shareholders of ICICI and ICICI Bank in
January2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by
the High court if Judicature t Mumbai and the Reserve Bank of Indi in April 2002.

BUSINESS PROFILE

Products & Services

 Personal Banking

1. Deposits
2. Loans
3. Cards
4. Investments
5. Insurance
6. Demat Services
7. Wealth Management

NRI Banking

1. Money Transfer
2. Bank accounts
3. Investments
4. Property Solutions
5. Insurance
6. Loans

Business Banking

1. Corporate Net Banking

2. Cash Management
3. Trade Services
4. Frontline
5. SME Services
6. Online Taxes
7. Custodial Service

Head Office

1. ICICI Bank
2. 9th Floor, South Towers
3. ICICI Towers
4. Bandar Karla Complex
5. Bandar (E)
 6. Mumbai.

Board of Directors

1. Board Members

Mr. K. V. Kamath, Chairman

Mr. Sridhar Jaeger

Mr. Hemi R. Khurokhan

Mr. Lakshmi N. Mittal
Mr. Narendra Murkumbi
Dr. Anup K. Pujari
Mr. Anupam Purl
Mr. M. S. Ramachandran
Mr. M, K. Sharma
Mr. V. Sridhar
Mr. V. Prem Wasta
Ms. Chandra D. Kocher
Mr. Sandeep Bakhsi
Mr. N. S. Kennan
Mr. K. Ram Kumar,
Mr. Son joy Chatterjee,
Executive Director

PRODUCTS

ICICI Bank provides a comprehensive range of deposit products to meet your needs.
Along with the ease of network branch ATMs, E-Channel services like Internet and mobile
banking are available. ICICI Bank offers banking right at your front door. Choose one of its
deposit packages, provide your information online, and a representative will get in touch with
you to start an account.

SAVING ACCOUNTS

Customers of ICICI Bank can open powerful savings accounts with a variety of practical
features and banking options. Customers may now bank whenever it's convenient for them
without having to worry about standing in line.
CURRENT ACCOUNTS

To support its commercial operations, every company needs effective banking facilities.
The ICICI bank provides high caliber services and a broad range of top tier goods. With the
help of its technological leadership and services, the bank can satisfy some of its customers'
most complex financial requirements. Businesspeople, joint stock companies, institutions,
public authorities, public corporations, etc. all require current accounts. Any company that
does a lot of banking transactions needs a current account.

SALARY ACCOUNTS

Both companies and employees can profit greatly from ICICI Bank salary accounts.
You can open one of our payroll accounts as an organization to facilitate the simple
disbursement of salaries and take advantage of a host of other perks. Your staff would
appreciate the ease of ICICI bank pay accounts. Having the largest network of ATMs at their
command.

1. Free 24-hour phone Banking

2. Free Internet Banking.

FIXED DEPOSITS:

Fixed Deposits are a choice that enables you to grow your money and build wealth in a
risk-free manner. Customers of ICICI can choose from a variety of flexible fixed deposit
options that are designed to meet their individual needs and preferences. Customers can put
money into a fixed deposit offered by ICICI for as long as they like.

RECURRING DEPOSITES:

 ICICI Bank The best approach to invest little sums of money each month and have a
sizable account at maturity is via recurring deposits. High rates of recurrent invoicing and
payments can drain your finances, making major investments appear out of reach.
 3. RESEARCH METHODOLOGY

3.1 Statement of the problem:

Performance and efficiency of banks are the key elements of financial system. The main
objective of the banking sector in India has been to increase efficiency and profitability of the
banks. The banking reforms created an opportunity to increase number of private and foreign
banks in the market.

This study attempts to apply different ratios on ICICI bank in order to study its efficiency
and solvency position.

3.2 Need for the Study:

financial analysis is a potent tool that aids in identifying an enterprise's operational and
financial strengths and weaknesses. When applying any sophisticated forecasting and
planning techniques, financial analysis is the first step in the planning process.

1. This analysis aids in understanding the company's financial Position.

2. This study offers Possible Solution to Overcome working capital issue.

3.3 Objectives of the Study:

1. To analyze the financial performance of ICICI Bank.

2. To find out the profit and loss account as well as balance sheet of the bank.
 3. To formulate and analyze the Ratios of the Bank.
4. To analyze the financial position of the Bank.

3.4 Scope of the Study:

1. An accurate picture of ICICI Bank's financial situation can be obtained through financial
analysis.

2. It is possible to keep a corporation with assets that outweigh the liabilities by

maintained financial performance to numerous lenders and creditors.

3.5 Sources of the Data (Data Collection):

This project report is based on secondary data. Secondary data is collected from through
different sources like;

1. Journals
2. Magazines and company websites
3. Annual reports of company
4. Internet sources.

3.6 Tools for analysis:

The study on financial analysis of ICICI Bank tools user for this analysis are;

1. Ratios.
1. Current Ratio
2. Quick Ratio
3. Cash Ratio
4. Gross Profit Ratio
5. Net Profit Turnover Ratio
6. Operating Profit Ratio
7. Return on Capital Employed Ratio
8. Debt Ratio
9. Debt Equity Ratio
10. Interest Coverage Ratio
11. Proprietary Ratio
12. Working Capital Turnover Ratio
13. Total Assets Turnover Ratio
 14. Debtors Turnover Ratio
15. Fixed Assets Turnover Ratio

3.7 Limitations:

1. The analysis and interpretation are based on secondary information from ICICI Bank's
publicly available annual reports for the study period.

2. The investigation has been constrained for a period of 5 years due to the restricted time at
hand.

3. Ratios alone may not fully depict the company's favorable or unfavorable financial
situation.

4. A thorough picture of the company's operations cannot be provided by a study of financial

performance; it can only be used to learn about the financial health of the business.

4. DATA ANALYSIS AND INTERPRETATION

4.1. Liquidity Ratios

1. Current Ratio:
Current Assets
Current Ratio=
Current Liabilities

Table No: 4.1

Table show current ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Current Assets Current Liabilities Current Ratio

2017-18 155896.38 30196.40 5.16
2018-19 162148.45 37851.46 4.28
2019-20 195133.41 47994.99 4.06
2020-21 206539.46 58770.37 3.51
2021-22 232662.48 68982.80 3.37

Graph No: 4.1

Graph show current ratio of ICICI Bank
from the year 2017-18 to 2021-22
 6

5.16
5
4.28
Current Ratio

4.06
4
3.51
3.37

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

Current Ratio useful to measures the firms short term solvency. The Current ratio
standard norm is 2:1, during the period 2017-18 to 2021-22 the Current ratio of the
company is 5.16, 4.28, 4.06, 3.51, and 3.37. current ratio is decresing year by year is 2017-18
is 5.16 and 2021-22 is 3.37.

2. Quick Ratio:

Quick Assets
Quick Ratio=
Current Liabilities

Table: 4.2
Table show Quick Ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Quick Assets Current Liabilities Quick Ratio

2017-18 84169.38 30196.40 2.78

2018-19 80296.23 37851.46 2.12

2019-20 119155.74 47994.99 2.48

2020-21 133128.25 58770.37 2.26

2021-22 167822.36 68982.80 2.43

Graph No: 4.2

Graph show Quick Ratio of ICICI Bank
from the year 2017-18 to 2021-22
 3 2.78
2.48 2.43
2.5 2.26
2.12
2
Quick Ratio

1.5

0.5

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

Quick Ratio is more penetrating test of the liquidity than the Current ratio. The Quick
ratio standard norm is 1:1. During the period 2017-18 to 2021-22 the Quick ratio is 2.78,
2.12, 2.48, 2.26 and 2.43. In the year 2017-18 Quick ratio is high in 2.78.

3. Cash Ratio:

Cash+ Marketable Securities

Cash Ratio =
Current Liabilities

Table: 4.3
Table show Cash Ratio of ICICI Bank
from the year 2017-18 to 2021-22
Cash +Marketable
Year Current Liabilities Cash Ratio
Securities
2017-18 33102.38 30196.40 1.09

2018-19 37858.01 37851.46 1.00

2019-20 35283.96 47994.99 0.73

2020-21 46031.19 58770.37 0.78

2021-22 60120.82 68982.80 0.87

Graph: 4.3
Graph show the Cash Ratio of ICICI Bank
from the year 2017-18 to2021-22
 1.2
1.09
1
1
0.87
0.78
0.8 0.73
Cash Ratio

0.6

0.4

0.2

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

The Standard norm of Cash ratio is 1.2. During the period 2017-18 to 2021-22 the cash
ratio is 1.09, 1.00, 0.73, 0.78 and 0.87. The Cash ratio is decreased year by year 2017-18 to
2021-22.

B. Profitable Ratio

1. Gross profit Ratio:

Gross Profit
Gross Profit Ratio= X 100
Net Sales

Table No: 4.4

Table show Gross Profit Ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Gross Profit Sales Gross Profit Ratio

2017-18 17419.63 54965.89 31.69

2018-19 14512.16 63401.19 22.88

2019-20 16448.62 74778.32 21.99

2020-21 18968.53 79118.27 23.97

2021-22 18517.53 86374.55 21.43

 Graph No: 4.4
Graph show Gross Profit Ratio of ICICI Bank
from the year 2017-18 to 2021-22
35 31.69
Gross Profit Ratio

30
25 22.88 23.97
21.99 21.43
20
15
10
5
0
1 2 3 4 5

Year

Interpretation:

The Gross profit ratio indicates the relationship of gross profit and sales. During the year
gross profit are 31.69, 22.88, 21.99, 23.97, 21.43. Gross profit is decreasing year by year. In
the year 2020-21 gross profit is increasing in 23.97.

2. Net Profit Ratio:

Net Profit
Net Profit Ratio= X 100
Net Sales

Table No: 4.5

Table show Net Profit Ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Net Profit Net Sales Net Profit Ratio

2017-18 6777.42 54965.89 12.33

2018-19 3363.30 63401.19 5.30

2019-20 7930.81 74798.32 10.60

2020-21 16192.68 79118.27 20.46

2021-22 23339.49 86374.55 27.02

Graph No: 4.5

 Graph show the Net Profit Ratio of ICICI Bank
from the year 2017-18 to 2021-22
30
27.02
25
20.46
20
Net Profit Ratio

15 12.33
10.6
10
5.3
5

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2018-19 to 2021-22 the net profit ratio is high in the year 2021-22. The
year 2021-22 ICICI Bank have a more profits is 27.02. Net profit ratio in the year 2017-18 to
2021-22 is 12.33, 5.30, 10.60, 20.46, and 27.02.

3. Operating Profit Ratio:

Operating Profit
Operating Profit Ratio= X 100
Net Sales

Table No: 4.6

Table show Operating Profit Ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Operating Profit Net Sales Operating Profit Ratio

2017-18 24741 54965.89 45.01

2018-19 23437 63401.19 36.96

2019-20 28102 74798.32 37.57

2020-21 36410 79118.27 46.01

2021-22 39250 86374.55 45.44

Graph No: 4.6

Graph show the Operating Profit Ratio of ICICI Bank
 from the year 2017-18 to 2021-22
50 46.01
45.01 45.44
45
40 36.96 37.57
35
30
Operating Ratio

25
20
15
10
5
0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:
During the Year 2017-18 to 2021-22 the operating profit ratio is 45.01, 36.96, 37.57,
46.01 and 45.44. Operating profit in increasing high in the year 2020-21 is 46.01 and
decreased in the year 2018-19 is 36.96.

4. Return on Capital Employed Ratio:

EBIT
ROCE=
Capital Employed

Table No:4.7
Table show Return on Capital Employed of ICICI Bank
from the year 2017-18 to 2021-22

Year EBIT Capital Employed ROCE Ratio

2017-18 60947.69 1342314.94 0.045

2018-19 65815.38 117166231 0.056

2019-20 77745.76 1050370.16 0.074

2020-21 80922.50 926607.69 0.087

2021-22 89620.49 848992.76 0.105

Graph No:4.7
 Graph show the ROCE Ratio of ICICI Bank
from the year 2017-18 to 2021-22
0.12
0.105
0.1
0.087
0.08 0.074
ROCE Ratio

0.06 0.056
0.045
0.04

0.02

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2017-18 to 2021-22 the Return on Capital Employed Ratio of the
company is 0.045, 0.056, 0.074, 0.087 and 0.105. Return on Capital Employed Ratio is High
in the year 2021-22 is 0.105. lowest in the year 2017-18 is 0.045.

D. Leverage Ratios

1. Debt Ratio:

Total Debts
Debt Ratio=
Total Assets

Table No: 4.8

Table Show Debt Ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Total Debts Total Assets Debt Ratio

2017-18 879189.16 879189.16 1.00

2018-19 964459.15 964459.15 1.00

2019-20 1098365.15 1098365.15 1.00

2020-21 1230432.68 1230432.68 1.00

 2021-22 1411297.68 1411297.68 1.00

Graph No: 4.7

Graph show the Debt Ratio of ICICI Bank
from the year 2017-18 to 2021-22
1.2
1 1 1 1 1
1

0.8
Debt Ratio

0.6

0.4

0.2

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

The debt ratio in the period 2017-18 to 2021-22 is 1.0 in the year 2018-19, 2020, 2021,
2022 the debt ratio is 1.00.

2. Debt- Equity Ratio:

Total Debt
Debt Equity Ratio=
Shareholders Equity

Table No: 4.9

Table shoe Debt- Equity Ratio of ICICI Bank
from the year 2017-18 to 2021-22
Share Holders
Year Total Debt Debt Equity Ratio
Equity
2017-18 879189.16 105158.94 8.36

2018-19 964459.15 108368.04 8.89

2019-20 1098365.15 116504.41 9.42

2020-21 1230432.68 147509.19 8.34

2021-22 1411297.68 170511.97 8.27

 Graph No: 4.9
Graph show the Debt Equity Ratio of ICICI Bank
from the year 2017-18 to 2021-22

9.6 9.42
Debt Equity Ratio

9.4
9.2
9 8.89
8.8
8.6
8.36 8.34
8.4 8.27
8.2
8
7.8
7.6
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2017-18 to 2021-22. The debt equity ratio is 8.36, 8.89, 9.42, 8.34 and
8.27.in the year 2019-2020. The debt equity ratio is high in 9.42 and 2021-22 year the debt
equity ratio is low in 8.27.

3. Interest Coverage Ratio:

EBIT
Interest Coverage Ratio=
Interest

Table No: 4.10

Table show Interest Coverage Ratio of ICICI Bank
from the year 2017-18 to 2021-22
Interest Coverage
Year EBIT Interest
Ratio
2017-18 60947.69 40866.21 1.49

2018-19 65815.38 47942.62 1.37

2019-20 77745.76 57551.11 1.35

2020-21 80922.50 57288.81 1.41

 2021-22 89620.49 63833.56 1.40

Graph No: 4.10

Graph show the Interest Coverage Ratio of ICICI Bank
from the year 2017-18 to 2021-22
1.55
Intereset Coverage Ratio

1.5 1.49

1.45
1.41 1.4
1.4
1.37
1.35
1.35

1.3

1.25
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2017-18 to 2021-22 the interest coverage ratio is 1.49, 1.37, 1.35, 1.41 and
1.40. In the year 2017-18 having high interest coverage ratio is 1.49 and the year 2019-2020
is having low interest coverage ratio is 1.35.

4. Proprietary Ratio:

Shareholders Fund
Proprietary Ratio=
Total Assets

Table No: 4.11

Table show Proprietary Ratio of ICICI Bank
for the Year 2017-18 to 2021-22

Year Shareholders Fund Total Assets Proprietary Ratio

2017-18 105758.94 879189.16 0.12

2018-19 108368.04 964459.15 0.11

2019-20 116504.41 1098365.15 0.10

2020-21 147509.19 1230432.68 0.11

 2021-22 170511.97 1411297.74 0.12

Graph No: 4.11

Graph show the Proprietary Ratio of ICICI Bank
from the year 2017-18 to 2021-22
0.125
Proprietary Ratio

0.12 0.12
0.12
0.115
0.11 0.11
0.11
0.105
0.1
0.1
0.095
0.09
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the year 2017-2018 and 2021-22 the proprietary ratio is 0.12, 0.11, 0.10, 0.11 and
0.12. In the year 2017-2018 and 2021-22 is having a same proprietary ratio is 0.12 and the
year 2018-19 and 2020-21 is having a same proprietary ratio is 0.11. In the year 2019-20
having a low proprietary ratio is 0.10.

D. Activity or Efficiency Ratio

1. Working Capital Ratio:

Nets Sales
WorkingCapital Ratio=
Working Capital
Table No: 4.12
Table show Working Capital Ratio of ICICI Bank
from the year 2017-18 to 2021-22
Working Capital
Year Net Sales Working Capital
Ratio
2017-18 54965.89 125699.78 0.43

2018-19 63401.19 124296.99 0.51

2019-20 74798.32 147138.42 0.50

2020-21 79118.27 147769.09 0.53

 2021-22 86374.55 163679.68 0.52

Graph No: 4.12

Graph show the Working Capital Ratio of ICICI Bank
from the year 2017-18 to 2021-22
0.6 0.53
Working Capital Ratio

0.51 0.5 0.52

0.5 0.43
0.4
0.3
0.2
0.1
0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

Working capital turnover ratio is useful to measure the operating efficiency of the
company. During the year 2017-18 to 2021-22 the working turnover ratio are 0.43, 0.51,
0.50, 0.53 and 0.52. The working capital turnover ratio is higher in the year 2020-21 is 0.53.

2. Total Assets Turnover Ratio:

Net Sales
Total Assets Turnover Ratio=
Total Assets

Table No: 4.13

Table show Total Assets Turnover Ratio of ICICI Bank
for the year 2017-18 to 2021-22
Total Assets
Year Net Sales Total Assets
Turnover Ratio
2017-18 54965.89 879189.16 0.062

2018-19 63401.19 964459.15 0.065

2019-20 74798.32 1098365.15 0.068

2020-21 79118.27 1230432.21 0.064

 2021-22 86374.45 1411297.74 0.061

Graph No: 4.13

Graph show the Total Assets Turnover Ratio of ICICI Bank
for the year 2017-18 to 2021-22
Total A ssets Turnover R atio

0.07
0.068
0.068
0.066 0.065
0.064
0.064
0.062
0.062 0.061
0.06
0.058
0.056
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:
During the year 2017-18 to 2021-22 the total assets turnover ratio is 0.062, 0.065, 0.068,
0.064 and 0.061. The 2019-20 is having a high total assets turnover ratio is 0.068 and in the
year 2021-22 is having a low total assets turnover ratio is 0.061.

3. Debtors Turnover Ratio:

Net Sales
Debtors Turnover Ratio= X 100
Average Debtors

Table No: 4.14

Table show Debtors Turnover Ratio
from the year 2017-18 to 2021-22
Debtors Turnover
Year Net Sales Average Debtors
Ratio
2017-18 54965.89 67789.40 0.81

2018-19 63401.19 79941.22 0.79

2019-20 74798.32 82232.83 0.90

 2020-21 79118.27 99726.01 0.79

2021-22 86374.55 126141.99 0.68

Graph No: 4.14

Graph show the Debtors Turnover Ratio of ICICI Bank
from the year 2017-18 to 2021-22
1
0.9
Debtors Turnover Ratio

0.9
0.81 0.79 0.79
0.8
0.7 0.68

0.6
0.5
0.4
0.3
0.2
0.1
0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2018-19 to 2021-22 the debtor’s turnover ratio is 0.81, 0.79, 0.90, 0.79
and 0.68. The debtor’s turnover is higher in the year 2019-20 is 0.90 and debtor’s turnover
ratio is low in the year 2021-22 is 0.68.

4. Fixed Assets Turnover Ratio:

Net Sales
¿ AssetsTurnover Ratio= Assets ¿
Net ¿

Table No: 4.15

Table show Fixed turnover Ratio of ICICI Bank
from the year 2017-18 to 2021-22
Fixed Assets
Year Net Sales Net Fixed Assets
Turnover Ratio
2017-18 54965.89 7903.51 6.95

2018-19 63401.19 7931.43 7.99

2019-20 74798.32 8410.29 8.89

 2020-21 79118.27 8877.58 8.91

2021-22 86374.55 9373.82 9.21

Graph No: 4.15

Graph show the Fixed Assets Turnover Ratio of ICICI Bank
from the year 2017-18 to 2021-22
Fixed Asseta Turnover

10 8.89 8.91 9.21

9 7.99
8 6.95
7
6
Ratio

5
4
3
2
1
0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2017-18 to 2021-22 the fixed assets turnover ratio is 6.95, 7.99, 8.89,
8.91 and 9.21. in the year 2017-18 the fixed assets turnover ratio is having low is 6.95 and the
year 2021-22 is having a high fixed assets turnover ratio is 9.21.

5. SUMMARY OF FINDINGS, SUGGESTIONS &

CONCLUSION
5.1 SUMMARY OF FINDINGS
1. In current ratio the ICICI Bank Ltd show the higher standard norm. The ICICI Bank
Ltd maintained current ratio is not satisfactory. In the year 2017-18 current ratio is
5.16 and the year 2021-22 is 3.37.

2. ICICI Bank Ltd performance a low Quick ratio. ICICI Bank Ltd performed not well in
Quick ratio.

3. In a cash ratio the ICICI Bank Ltd performed very low and maintained consistency by
the decreasing their profits.
4. In ICICI Bank Ltd performed a good maintained in gross profit ratio. The ICICI Bank
has having highest gross profit ratio in the year 2017-18 is 31.69 and lowest gross
profit ratio in the year 2021-22 is 21.43.

5. In net profit ratio the ICICI Bank performed good and maintained consistency by
increasing their profits.

6. The ICICI Bank performed a good operating profit ratio and maintained good
consistency by increasing their profits.

7. In debt ratio the ICICI Bank Ltd performed equally to the al years and maintained
same assets and liabilities of the company.

8. In debt equity ratio the ICICI Bank Ltd performed poorly and low. Increased in the
year 2019-20 is 9.42.

9. ICICI Bank Ltd performed very well in interest coverage ratio. In the year 2017-18
having a highest interest coverage ratio is 1.49.

10. The proprietary ratio of ICICI Bank Ltd performed very well. In the year 2017-18 to
2021-22 and 2018-19 to 2020-21 is 0.12 and 0.11.

11. The performance of Working capital turnover ratio of ICICI Bank Ltd is well. During
the year 2017-18 and 2021-22 the total assets turnover ratio is 0.062, 0.065, 0.068,
0.064 and 0.061 respectively and company performed well.

12. In ICICI Bank Ltd having a good performance in Debtors turnover ratio. The Debtors
turnover ratio highest in the year 2019-20 is 0.90 and Debtors turnover ratio is low in
the year 2021-22 is 0.68.

13. Fixed turnover ratio of ICICI Bank Ltd is performed low and not satisfactorily. The
Bank has pursued an approach of prioritizing capital conservation, liquidity
management and hazard containment given the difficult financial environment.

14. The Bank has also located strong emphasis on efficiency improvement and price
clarification.
15. The 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.

5.2 SUMMARY OF SUGGESTIONS

1. Although the short-term liquidity function is quite quality as in line with discovered
by liquid ratio but the modern-day ratio is beneath the suitable ratio of 2:1. So the
financial institution has to make efforts to increase its modern assets to preserve a
protection margin and to maintain a better liquidity role.

2. 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.

3. Though the bank has been successful in increasing its deposits but to further improve
upon such situation it can introduced 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.

4. Bank should try to finance more and more projects. Financing will help it to earn
higher number of profits.

5. Bank can also suppose for enhancing its day-to -day service to its customers. Such
provider can be stepped forward through presenting set off carrier and showing a
mind-set of co-operation to its customers. It will assist to offer a kind of confidence to
the public and build a higher public image.

6. The bank should simplify the procedure of advances for quick disbursement.

7. To achieve organizational success a proper independent working atmosphere should

be developed to achieve desired objective more effectively.
 8. Bank should adopt branch automation experiment to control the operational cost.

5.3 CONCLUSION
On the basis of various strategies carried out for the economic evaluation of ICICI Bank
we can arrive at a conclusion that the financial role and normal performance of the financial
institutions is fine. Though the earnings of the financial institutions have extended over the
length however not in the equal pace as of charges. But the financial institution has succeeded
in retaining an inexpensive profitability function.

The financial institution has succeeded in growing its proportion capital also which has
elevated around 50% within the remaining 5 years. Individuals are the main shareholders.
The main fulfillment of the bank has been a high-quality boom in its deposits, which has
constantly been its fundamental objective. Fixed and modern-day deposits have also proven
an increasing fashion.

Equity shareholders are also playing an increasing trend in the go back on their capital.
Though current assets and liabilities of the financial institutions isn’t always so nice but
financial institution has succeeded in keeping a strong solvency function over the years. As a
way as the ratio of external and inner fairness is worried, it’s miles clean that financial
institutions have been using.