Financial Statement Analysis On Icici Bank: Submitted As A Part of MBA 1 Year Course Requirement by

FINANCIAL STATEMENT ANALYSIS ON
ICICI BANK
Submitted as a part of MBA 1st year course requirement

By
SRUTHI P
RA2152001040030
Under the guidance of
Dr.M.Karthikeyan
Assistant Professor
S.R.M INSTITUTE OF SCIENCE AND TECHNOLOGY
VADAPALANI, CHENNAI
DEPARTMENT OF MANAGEMENT STUDIES
APRIL 2022
S.No Contents to be Exceeds Meets Fails to Meet Total
submitted Minimum Minimum Standards Marks
Standards Standards [0% – 49%]
[76% – 100%] [50% - 75%]
1. Introduction: Includes essential Includes Essential material not
[10 Marks] material in this minimum material included in this
section. Any in this section. section.
1.1 Need for the
additional material [5 to 7 Marks] [0 to 4 Marks]
study,
can be added in
1.2 Objectives of the appendix.
study [8 to 10 Marks]
1.3 Scope of the
study.
2. Profile: Includes essential Includes Essential material not

[10 Marks] material in this minimum material included in this
2.1 Industry Profile section. Any in this section. section.
2.2 Company Profile additional material [5 to 7 Marks] [0 to 4 Marks]
can be added in
appendix.
[8 to 10 Marks]
3. Literature Survey: Analyzes all the Meets the basic Meets some of the
[20 Marks] criteria’s of topic. criteria, but fails basic criteria, but fails
Literature survey to be Collecting 11 to 15 to demonstrate to demonstrate
collected from Literatures from information information needed to
Articles/ the assigned topic. needed to address address most of the
Journals/Magazines/ [14 to 20 Marks] some of the requirements.
Newspapers/Books/ requirements. Collecting less than 6
Periodicals for the Collecting 6 to 10 Literature from the
Literatures from assigned topic.
assigned topic.
the assigned topic. [0 to 6 Marks]
[7 to 13 Marks]
4. Data Analysis & Analysing all the Meets basic Meets some of the
Interpretation: aspects of the outline of the basic criteria and fails
[30 Marks] assigned company assigned company to address most of the
4.1 Comparative by computing more by computing requirements of the
Statement Analysis than 5 problems more than 3 assigned company by
[31.03.2020 with from the assigned problems from the computing less than 3
31.03.2021] topic. assigned topic. problems from the
4.2 Common size [21 to 30 Marks] [11 to 20 Marks] assigned topic.
Statement Analysis [0 to 10 Marks]
[31.03.2020 with
31.03.2021]
4.3 Ratio Analysis
[Important 7 Ratios]
4.4 Cash Flow
Analysis
[31.03.2020 with
31.03.2021]
4.5 Least Square
Trend Analysis
[Projecting Profit or
Sales for next five
years]
5. Findings, Covering all the Meets basic Fails to address most
Suggestions and aspects of the outline of the of the requirements of
Conclusion: assigned topic. assigned topic. the assigned topic.
[20 Marks] [14 to 20 Marks] [7 to 13 Marks] [0 to 6 Marks]
5.1 Findings of the
study
5.2 Suggestions of the
study
5.3 Conclusion
6. Appendix: Covering all the Meets basic Fails to address most
[10 Marks] aspects of the outline of the of the requirements of
References and assigned topic. assigned topic. the assigned topic.
[8 to 10 Marks] [5 to 7 Marks] [0 to 4 Marks]
Additional
information related to
the assigned topic.
INTRODUCTION:
The banking sector has shown a remarkable responsiveness to the needs of the planned
economy. It has brought about a considerable progress in its efforts at deposit mobilization
and has taken a number of measures in the recent past for accelerating the rate of growth of
deposits. The activities of commercial banking have growth in multi-directional ways as well
as multi-dimensional manner. In a way, commercial banks have emerged as key financial
agencies for rapid economic development. By pooling the savings together, banks can make
available funds to specialized institutions which finance different sectors of the economy,
needing capital for various purposes, risks and durations. By contributing to government
securities, bonds and debentures of term – lending institutions in the fields of agriculture,
industries and now housing, banks are also providing these institutions with an access to the
common pool of savings mobilized by them, to that extent relieving them of the
responsibility of directly approaching the saver. This intermediation role of banks is
particularly important in the early stages of economic development and financial
specification. A country like India, with different regions at different stages of development,
presents an interesting spectrum of the evolving role of banks, in the matter of intermediation
and beyond.
ICICI Bank is India's largest private sector bank by consolidated assets. ICICI Bank Ltd was
incorporated in the year 1994 as a part of the ICICI group with the name ICICI Banking
Corporation Ltd. The initial equity capital was owned 75% by ICICI and 25% by SCICI Ltd a
diversified finance and shipping finance lender of which ICICI owned 19.9% at December
1996. Pursuant to the merger of SCICI into ICICI ICICI Bank became a wholly-owned
subsidiary of ICICI. In September 10 1999 the name of the Bank was changed from ICICI
Banking Corporation Ltd to ICICI Bank LtdIn March 10 2001 ICICI Bank acquired Bank of
Madura an old private sector bank in an all-stock merger. ICICI Ltd along with their wholly
owned retail finance subsidiaries namely ICICI Capital Services Ltd and ICICI Personal
Financial Services Ltd amalgamated with the Bank with effect from May 3 2002.In May
2003 the bank acquired the entire paid-up capital of Transamerica Apple Distribution Finance
Pvt Ltd (now known as ICICI Distribution Finance Pvt Ltd) which primarily engaged in
financing in the two-wheeler segment. In September 12 2003 the Bank incorporated ICICI
Bank Canada as a 100% subsidiary company. In May 2005 the Bank acquired the entire paid-
up capital of Investitsionno-Kreditny Bank a Russian bank with their registered office in
Balaban Ovo in the Kaluga region and a branch in Moscow. Thus IKB became a subsidiary
of Bank with effect from May 19 2005. In August 2005 the Bank acquired additional 6% of
the equity share capital of Prudential ICICI Asset Management Company Ltd and Prudential
ICICI Trust Ltd from Prudential Corporation Holdings Ltd and thus these two companies
became the subsidiaries of the Bank. During the year 2006-07 ICICI Bank Canada
incorporated ICICI Health Management Inc as a subsidiary company. In April 2007 Sangli
Bank Ltd merged with the Bank with effect from April 19 2007. In 2007 June the Bank
entered into an agreement with networking solutions provider GTL Ltd to lease out their call
centre facility at Mahape worth of around Rs 100 crore for a period of 25 years. During the
year 2007-08 the Bank increased their branches & extension counter from 755 Nos to 1262
Nos including the addition of about 200 branches through the merger of Sangli Bank. They
increased their ATM network from 3271 ATMs to 3881 ATMs. They launched mobile
banking service enabling a wide range of banking transactions using the mobile phone.
During the year 2008-09 the Bank increased their branches & extension counter from 1262
Nos to 1419 Nos. They also received licenses for 580 additional branches from RBI. They
increased their ATM network to 4713 ATMs from 3881 ATMs. In April 22 2009 ICICI
Prudential Pension Funds Management Company Ltd was incorporated as a subsidiary
company of ICICI Prudential Life Insurance Company Ltd. During the year 2009-10 the
Bank increased their branches & extension counter from 1419 Nos to 1707 Nos. They also
increased their ATM network from 4713 ATMs to 5219 ATMs. ICICI Wealth Management
Inc. a subsidiary of ICICI Bank Canada has been dissolved effective December 31 2009.In
January 2010 the Bank and First Data a company engaged in electronic commerce and
payment services formed a merchant acquiring alliance and a new entity named ICICI
Merchant Services 81% owned by First Data was formed which acquired ICICI Bank's
merchant acquiring operations for a total consideration of Rs. 3744 million.In May 2010 the
Bank approved the scheme of amalgamation of Bank of Rajasthan Ltd with the Bank through
share-swap in a non-cash deal that values the Bank of Rajasthan at about Rs 3000 crore. Each
118 shares of Bank of Rajasthan will be converted into 25 shares of ICICI Bank Ltd. In
August 2010 as per the scheme of amalgamation Bank of Rajasthan was amalgamated with
the Bank with effect from the close of business on 12 August 2010. The merger of Bank of
Rajasthan added over 450 branches to the network. Including these their branch network
increased from 1707 branches at March 31 2010 to 2529 branches at March 31 2011. They
also increased their ATM network from 5219 ATMs at March 31 2010 to 6055 ATMs at
March 31 2011.On 19 May 2011 ICICI Bank announced that the bank through its Dubai
branch successfully priced an issuance of 5.5 year fixed rate notes in aggregate principal
amount of US$ 1 billion. The offering had an order book of US$ 2.70 billion with strong
interest from over 220 investors. On 16 August 2012 ICICI Bank announced that the bank
through its Dubai branch successfully priced an issuance of 5.5 year fixed rate notes in an
aggregate principal amount of US$750 million. The offering was oversubscribed by 7.6 times
and had an order book of US$ 5.7 billion. On 26 November 2012 ICICI Bank through its
Dubai branch successfully launched and priced a US$ 250 million tap of its US$ 750.0
million 4.70% 2018 notes originally issued in August 2012. The offering was oversubscribed
by 5.6 times and had an order book of US$ 1.4 billion. On 22 August 2013 ICICI Bank
announced an increase of 0.25% in its base rate to 10% p.a. from 9.75% p.a. with effect from
23 August 2013. The bank also announced an increase of 0.25% in its benchmark prime-
lending rate and in its Floating Reference Rate (FRR) for consumer loans (including home
loans) with effect from 23 August 2013. On 23 January 2014 ICICI Bank signed an
agreement for a USD 200 million Line of Credit with The Export-Import Bank of Korea
(Korea Eximbank).The Board of Directors of ICICI Bank Limited at its meeting held on 9
September 2014 considered and approved the sub-division (split) of one equity share of the
bank having a face value of Rs 10 into five equity shares of face value of Rs 2 each.The
Board of Directors of ICICI Bank at its meeting held on 5 December 2014 approved a
proposal for the sale of ICICI Bank's shareholding in ICICI Bank Eurasia Limited Liability
Company (IBEL) a non-material wholly-owned banking subsidiary in Russia to Sovcombank
an unrelated third party Russian bank.On 7 April 2015 ICICI Bank announced a reduction of
0.25% in its base rate to 9.75% p.a. from 10% with effect from 10 April 2015.
Simultaneously the bank announced a reduction in interest rates for some tenors of retail
fixed deposits. ICICI Bank announced a reduction of 0.05% in its base rate to 9.7% p.a. from
9.75% p.a. with effect from 26 June 2015. On 1 October 2015 ICICI Bank announced a
reduction of 0.35% in its base rate to 9.35% p.a. from 9.7% p.a. with effect from 5 October
2015.The Board of Directors of ICICI Bank at its meeting held on 30 October 2015 approved
the sale of 9% shareholding in its subsidiary ICICI Lombard General Insurance Company to
its joint venture partner Fairfax Financial Holdings Limited. Upon completion of the
transaction ICICI Bank will hold approximately 64% stake and Fairfax will hold about 35%
stake in ICICI Lombard General Insurance Company.The Board of Directors of ICICI Bank
at its meeting held on 16 November 2015 approved the sale of 6% shareholding in its
subsidiary ICICI Prudential Life Insurance Company comprising the sale of 4% to Premji
Invest & its affiliates and 2% to Compassvale Investments Pte Ltd an indirectly wholly-
owned subsidiary of the Singapore-based investment company Temasek. Upon completion of
the transaction ICICI Bank will hold approximately 68% stake in ICICI Prudential Life
Insurance Company. Prudential Plc ICICI Bank's joint venture partner will maintain its
current share of approximately 26%.On 14 January 2016 ICICI Bank announced that it
crossed the milestone of disbursing mortgage loans of over Rs 1 lakh crore a first among
private sector banks in the country.On 14 March 2016 ICICI Bank through its Dubai branch
priced an issuance of 10 year fixed rate notes of an aggregate principal amount of US$ 700
million. The notes carry a coupon of 4% and were offered at an issue price of 99.592.On 18
July 2016 ICICI Bank announced that its subsidiary company ICICI Prudential Life
Insurance Company has filed a draft red herring prospectus with the Securities and Exchange
Board of India for a public offer of up to 18.13 crore equity shares representing
approximately 12.65% of its equity share capital through an offer for sale by ICICI Bank. 9
September 2016 ICICI Bank announced that the bank has entered into a subscription
agreement to acquire 10% shareholding in Resurgent Power Ventures Pte. Limited a power
platform created to facilitate investment in power projects in India by ICICI Group and Tata
Group with Caisse de depot et placement du Quebec (CDPQ) of Canada Kuwait Investment
Authority and State General Reserve Fund of Oman as partner investors. On 2 January 2017
ICICI Bank announced a reduction of 0.7% in marginal cost of funds based lending rates
(MCLR) with effect from 3 January 2017. On 2 March 2017 ICICI Bank through its Dubai
branch priced an issuance of 5.5 year fixed rate notes for an aggregate principle amount of
$300 million. The Board of Directors of ICICI Bank at its meeting held on 3 May 2017
recommended issue of bonus shares in the ratio of 1:10. On 15 May 2017 ICICI Bank
announced reduction of interest rates by upto 30 basis points for home loans upto Rs 30 lakh
in its bid to boost affordable housing in the country.On 5 June 2017 the Board of Directors of
ICICI Bank approved the sale of a part of its shareholding in ICICI Lombard General
Insurance Company in an initial public offering by ICICI Lombard General Insurance
Company subject to requisite approvals and market conditions. On 14 July 2017 ICICI Bank
announced that its subsidiary company ICICI Lombard General Insurance Company Limited
has filed a draft red herring prospectus with the Securities and Exchange Board of India for a
public offer of up to 8.62 crore equity shares representing approximately 19% of its equity
share capital through an offer for sale of up to 3.17 crore equity shares by ICICI Bank and up
to 5.44 crore equity shares by FAL Corporation. ICICI Bank announced a reduction in
interest on Savings Bank account by 50 basis points to 3.5% from 4% with effect from 19
August 2017 on deposits below Rs 50 lakh. Interest rate on deposits of Rs 50 lakh and above
was kept unchanged at 4%.On 7 November 2017 the Board of Directors of ICICI Bank
approved the sale of a part of its shareholding in ICICI Securities in an initial public offering
by ICICI Securities subject to requisite approvals and market conditions. On 15 December
2017 ICICI Bank announced that it is selling 6.44 crore shares of its subsidiary company
ICICI Securities through IPO of ICICI Securities. In this regard ICICI Securities Limited has
filed a draft red herring prospectus with Securities and Exchange Board of India for a public
offer of up to 6.44 equity shares of face value of Rs 5 each representing approximately 20%
of its equity share capital as on date. On 7 December 2017 ICICI Bank through its Dubai
branch priced an issuance of 10 year fixed rate notes for an aggregate principal amount of
US$ 500 million. The notes carry a coupon of 3.8% and were offered at an issue price of
99.728.The bank's consolidated total assets stood at US$ 156.8 billion as on 30 September
2017. The bank and their subsidiaries offer a wide range of banking and financial services
including commercial banking retail banking project and corporate finance working capital
finance insurance venture capital and private equity investment banking broking and treasury
products and services. They offer through a variety of delivery channels and through their
specialised subsidiaries in the areas of investment banking life and non-life insurance venture
capital and asset management. ICICI Bank had a network of 4856 branches and 13792 ATMs
as on 30 September 2017. ICICI Bank is present across 17 countries including India. The
bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock
Exchange of India Limited and their American Depositary Receipts (ADRs) are listed on the
New York Stock Exchange. The bank is the first Indian Bank listed on New York Stock
Exchange.During the fiscal 2018the bank sold its stake of 7% in ICICI Lombard General
Insurance Company Ltd and 20.78% stake in ICICI Securities Ltd through IPO.During the
FY 2017-18total assets for standalone entity increased by 13.9% from Rs 7717.91 billion at
31March 2017 to Rs 8791.89 billion at 31March 2018.Total advances increased by 10.4%
from Rs 4642.32 billion at 31March 2017 to Rs 5123.95 billion at 31March 2018.The
consolidated assets of the Bank and its subsidiaries and other consolidating entities increased
from Rs 9857.25 billion at March 31 2017 to Rs 11242.81 billion at March 31 2018.As on
31March 2018the bank had a branch network of 4867 branches and ATM network of 14367
ATMs under its fold.During the fiscal 2019total assets for standalone entity has increased by
9.7% from Rs 8791.89 billion at 31March 2018 to Rs 9644.59 billion at 31March 2019.Total
advances increased by 14.5% from Rs 5123.95 billion at 31March 2018 to Rs 5866.47 billion
at 31March 2019 primarily due to an increase in domestic advances by 16.9%.The
consolidated assets of the Bank and its subsidiaries and other consolidating entities increased
from Rs 11242.81 billion at March 31 2018 to Rs 12387.94 billion at March 31 2019.The
bank had a branch network of 4874 branches and ATM network of 14987 ATMs as on
31March 2019.The bank has focussed on its strategic objective of risk calibrated profitable
growth during the fiscal 2020.The core operating profit of the bank grew by 21.5% during the
fiscal 2020.The Bank made progress on increasing the granularity of its portfolio and
enhancing the customer franchise during the year. Retail loans as a proportion of total loans
increased from 60.1% at March 31 2019 to 63.2% at March 31 2020.Including non-fund
based outstanding the proportion of retail portfolio increased from 46.9% at March 31 2019
to 53.3% at March 31 2020.The Bank has repositioned its international franchise to focus on
non-resident Indians for deposits wealth and remittances businesses with digital and process
decongestion as a key enabler.Total assets for standalone entity increased by 13.9% from Rs
9644.59 billion at March 31 2019 to Rs 10983.65 billion at March 31 2020.Total advances
increased by 10.0% from Rs 5866.47 billion at March 31 2019 to Rs 6452.90 billion at March
31 2020 primarily due to an increase in domestic advances by 12.9% offset in part by a
decrease in overseas advances by 14.4%. The loan growth was impacted during the end of
fiscal 2020 due to Covid-19 pandemic.The consolidated assets of the Bank and its
subsidiaries and other consolidating entities increased from Rs12387.94 billion at March 31
2019 to Rs 13772.92 billion at March 31 2020.The bank has added 1151 branches and ATMs
during the fiscal 2020 and the total number of branches and ATMs as on 31March 2020 has
risen to 21012.Total assets increased by 12.0% from Rs 10983.65 billion at 31 March 2020 to
Rs 12304.33 billion at 31 March 2021. Total advances increased by 13.7% from Rs 6452.90
billion at 31 March 2020 to Rs 7337.29 billion at 31 March 2021 primarily due to an increase
in domestic advances by 17.7% offset in part by a decrease in overseas advances by
30.3%.Total deposits increased by 21.0% from Rs 7709.69 billion at 31 March 2020 to Rs
9325.22 billion at 31 March 2021.Term deposits increased by 18.4% from Rs 4231.51 billion
at 31 March 2020 to Rs 5008.99 billion at 31 March 2021.Current and savings account
(CASA) deposits increased by 24.1% from Rs 3478.19 billion at 31 March 2020 to Rs
4316.23 billion at 31 March 2021.The Average CASA deposits increased by 18.9% from Rs
2814.37 billion at fiscal 2020 to Rs 3346.32 billion at fiscal 2021. The Borrowings decreased
by 43.7% from Rs 1628.97 billion at 31 March 2020 to Rs 916.31 billion at 31 March
2021.The consolidated assets of the Bank and its subsidiaries and other consolidating entities
increased from Rs 13772.92 billion at 31 March 2020 to Rs 15738.12 billion at 31 March
2021.The Consolidated advances increased from Rs 7062.46 billion at 31 March 2020 to Rs
7918.01 billion at 31 March 2021.On 15 August 2020the bank has allotted 418994413 equity
shares of face value Rs 2 each to eligible qualified institutional buyers at the issue price of Rs
358 per equity share including a premium of Rs 356 per share.The Bank had a branch
network of 5266 branches and an ATM network of 14136 ATMs at 31 March 2021.The Bank
had a network of 5268 branches and 14141 ATMs at 30 June 2021.In accordance with the
Scheme of Arrangement (Scheme) between ICICI Lombard General Insurance Company
limited and Bharti AXA General Insurance Company limited as approved by Insurance
Regulatory and Development Authority of India on 03 September 2021 assets and liabilities
of Bharti AXA's general insurance business vested with ICICI General on the Appointed
Date of 01 April 2020. IC1CI General issued two fully paid up equity shares of Rs 10 each to
the shareholders of Bharti AXA forevery 115 fully paid up equity shares of Rs 10 each.
Subsequent to issuance of equity shares to Bhani AXA shareholdersthe bank's shareholding
in ICICI Lombard General Insurance reduced to below 50%.The Bank had a network of 5277
branches and 14045 ATMs at 30 September 2021.The total deposits grew by 16% year-on-
year to Rs 1017467 crore (USD 136.9 billion) as at 31 December 2021 and Average CASA
ratio was 45% in Q3 of FY2022.Also domestic loan portfolio grew by 18% year-on-year
during the Q3 of FY2022.The Bank had a network of 5298 branches and 13846 ATMs at 31
December 2021.
NEED FOR THE STUDY:
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly–owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all–stock amalgamation in fiscal 2001, and secondary market sales by
ICICI to institutional investors in fiscal 2001 and fiscal 2002.
ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a development
financial institution for providing medium-term and long-term project financing to Indian
businesses.
After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the merged entity's access
to low–cost deposits, greater opportunities for earning fee–based income and the ability to
participate in the payments system and provide transaction–banking services. The merger
would enhance value for ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business segments,
particularly fee–based services, and access to the vast talent pool of ICICI and its
subsidiaries.
To give meaning to absolute figure: Most numbers that are found in the financial statements
of companies will be vague and meaningless if a scientific method of ratio analysis is not
performed on the figures.
For planning and forecasting: Managers through ratio analysis can find a trend and based on
that trend, project into foreseeable future what an item of financial statement would most
likely be.
As a basis of decision making: The output of ratio analysis can be used as a basis for making
investment decision. An investor who after calculating some investment ratios would be
better equipped to make decision of whether to invest in a project or not to invest.
To compare results and performance: By calculating ratios, an insight of how management

are doing can be obtained. Ratio analysis is predominantly financial factors. Other non-
financial factors needs to be considered, the use of a balanced scorecard. For example, will do
just in performance measurement matters.
For analysis of strengths and weakness: Through ratio analysis, management can find out
department or division that is not relatively doing well and then take some corrective actions.
OBJECTIVES OF THE STUDY:
 To find out the Capital adequacy, Asset quality, Management efficiency, Earnings and
Liquidity of the ICICI bank.
 To analyse the financial performance of ICICI bank using CAMEL rating system.
 To measure the profitability.
 To facilitate comparative analysis.
 To assess past and current position.
 To assess short and long-term solvency.
 To assess the liquidity
 To analyze the financial statement.
 To simplify and summarize a long array of accounting data and make them
understandable.
 To forecast and prepare the plans for the future.
 To reveal the trend of costs, sales, profits and other important facts.
SCOPE OF THE STUDY:
 The study of financial performance helps to understand the overall profitability

position, liquidity position and long-term financial performance of the ICICI banks.
 This study helps to evaluate ICICI bank and suggest to their investors.
 This study will pave the way to the academic as well as general public about the
overall efficiency at which the largest commercial banks are serving.
 This study will also help to understand the financial performance of private sector.
 This study will throw light on the different aspects where the ICICI Bank excel and
how the banks will provide an opportunity in balancing its activities to achieve the
best performance.
PROFILE
INDUSTRY PROFILE:
The Indian banking system consists of 12 public sector banks, 22 private sector banks, 46
foreign banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000 rural
cooperative banks in addition to cooperative credit institutions As of September 2021, the
total number of ATMs in India reached 213,145.
According to the RBI, bank credit stood at Rs. 109.56 trillion (US$ 1.48 trillion), as of
September 24, 2021. Credit to non-food industries stood at Rs. 155.95 trillion (US$ 2.11
trillion), as of September 24, 2021.
Asset of public sector banks stood at Rs. 107.83 lakh crore (US$ 1.52 trillion) in FY20.
Total assets across the banking sector (including public, private sector and foreign banks)
increased to US$ 2.52 trillion in FY20.
Indian banks are increasingly focusing on adopting integrated approach to risk management.
The NPAs (Non-Performing Assets) of commercial banks has recorded a recovery of Rs.
400,000 crore (US$ 57.23 billion) in FY19, which is highest in the last four years.
RBI has decided to set up Public Credit Registry (PCR), an extensive database of credit
information, accessible to all stakeholders. The Insolvency and Bankruptcy Code
(Amendment) Ordinance, 2017 Bill has been passed and is expected to strengthen the
banking sector. Total equity funding of microfinance sector grew 42% y-o-y to Rs. 14,206
crore (US$ 2.03 billion) in 2018-19.
The digital payments revolution will trigger massive changes in the way credit is disbursed in
India. Debit cards have radically replaced credit cards as the preferred payment mode in India
after demonetisation. In September 2021, Unified Payments Interface (UPI) recorded 3.65 billion
transactions worth Rs. 6.54 trillion (US$ 87.11 billion).
COMPANY PROFILE:
Headquarters: India
No of Employees: 97,488
Address: Icici Bank Towers, Bandra-Kurla Complex, Mumbai, 400051
Industry: Financial Services, banking
Website: www.icicibank.com
Ticker Symbol & Exchange: ICICIBANK (NSE)
Market Cap*: $70.0B
Telephone: 91 22 26538900
Revenue: Rs. 91,246.94 crore (US$13 billion) (2020)
Founded: 5 January 1994
Type: Public.
Key people: Girish Chandra Chaturvedi (Chairman), Sandeep Bakhshi (MD & CEO)
Area served: Worldwide.

LITERATURE SURVEY
LITERATURE:
1. Baral (2005), study the performance of joint ventures banks in Nepal by applying the
CAMEL Model. The study was mainly based on secondary data drawn from the
annual reports published by joint venture banks. The report analysed the financial
health of joint ventures banks in the CAMEL parameters. The findings of the study
revealed that the financial health of joint ventures is more effective than that of
commercial banks. Moreover, the components of CAMEL showed that the financial
health of joint venture banks was not difficult to manage the possible impact to their
balance sheet on a large scale basis without any constraints inflicted to the financial
health.
2. Wirnkar and Tanko (2008), analysed the adequacy of CAMEL in evaluating the
performance of bank. This empirical research was implemented to find out the
ampleness of CAMEL in examining the overall performance of bank, to find out the
importance of each component in CAMEL and finally to look out for best ratios that
bank regulators can adopt in assessing the efficiency of banks. The analysis was
performed from a sample of eleven commercial banks operating in Nigeria. The study
covered data from annual reports over a period of nine years (1997-2005). The
analysis disclosed the inability of each component in CAMEL to congregate the full
performance of a bank. Moreover, the best ratios in each CAMEL parameter were
determined.
3. Bansal (2010) studied the impact of liberalization on productivity and profitability of

public sector banks in India. The study has been conducted on the basis of primary as
well as secondary data for the period 1996-07. The study concluded that the ability of
banks to face competition was dependent on their determined efforts at technological
upgradation and improvement in operational and managerial efficiency, improvement
in customer service, internal control and augmenting productivity and profitability.
The study found that public sector banks have to pay great attention to strategic
management, strategic planning and to greater specialization in the technical aspect of
lending and credit evaluation. It was recommended that public sector banks should
strengthen their project appraisal capabilities. In order to raise their productivity and
profitability, public sector banks should spell turnover strategies, income-oriented and
cost oriented strategies from time to time.
4. Reddy K. Sriharsha (2012) analysed relative performance of banks in India using CAMEL
approach. It is found that public sector banks have appreciably improved indicating positive
impact of the reforms in liberalizing interest rates, rationalizing directed credit and
Investments and increasing competition.
5. Joseph Jelsy and Vetrivel, (2012) have studied the financial performance in connection with
Activity Based Costing, and concluded that better cost predictions, loss making products are
identified. The ABC can be used for cost reduction, DSS( Decision Support System)
budgeting and better performance measurement in order to improve the financial performance
of the companies
6. Singh A.B., Tondon P. (2012) examined the financial performance of SBI and ICICI Bank,
public-sector and private sector respectively. The study found that SBI is performing well and
financially sound than ICICI Bank but in context of deposits and expenditure ICICI bank has
better managing efficiency than SBI. IITM Journal of Business Studies (JBS) Vol. 1, Issue 1,
2014
7. Srinivas K., Saroja L.(2013) compared and analysed the Financial Performance of HDFC
and ICICI Bank . For the purpose of analysis of comparative financial performance of the
selected banks using CAMELS model with t-test. The result showed that there is no
significance difference between the ICICI and HDFC bank’s financial performance but the
ICICI bank performance is slightly less compared with HDFC.
8. Sanjay J. Bhayani (2006) in his study, “Performance of the New Indian Private Banks: A
Comparative study”. The study covered 4 leading private sector banks -ICICI, HDFC Bank,
UTI and IDBI. The result showed that the aggregate performance of IDBI Bank is the best
among all the bank.
9. A Comparative Study of Financial Performance of Banking Sector in Bangladesh- an
Application ofCAMELS Rating System” by Nimalathasan (2008), focussed on the 6,562
branches’ of 48 banks in Bangladesh. The banks studied under this research were nationalised
commercial banks, Government owned development financial institution, Private commercial
banks, and foreign commercial banks. He concluded that out of 48 banks only 3 banks were
rated “strong” using CAMELS rating system and as many as 31 banks were rated
“satisfactory”, 7 banks were rated fair and 5 banks were rated as marginal and 2 banks
were unsatisfactory
10. Prof. Dr.Mohi-ud-Din Sangmi & Dr. Tabassum Nazir (2010)in their article titled,
“Analysing Financial Performance of commercial Banks in India: Application of CAMEL
Model” instituted that , Punjab national bank and Jammu and Kashmir Bank, had been able to
maintain capital adequacy ratio well above the minimum ratio prescribed by RBI. They also
observed that J & K bank was more efficient in maintaining its net NPA to net advances. The
spread management showed that PNB had received more interest income in comparison to J
& K Bank, while the liquidity position of J & K bank was better than the PNB
11. K.V.N. Prasad, G Ravinder and Dr. D Maheshwara Reddy (2011) in a paper titled, “A
CAMEL Model analysis of Public & Private Sector Banks in India”, measured the
performance of banking sector using CAMEL Model. They used the parameters like Capital
adequacy, Asset Quality, Management efficiency, Earning Quality and Liquidity. According
to the study Karur Vyasya Bank was the top mot bank followed by Andhra Bank, Bank of
Baroda. The period of the study was 2006-2010.
12. Arti Chandani and Mita Mehta (2013) in a research paper titled, “Woman leadership in
Axis bank – A comparison of woman and man leader using CAMEL Model” analysed the
performance of sample bank. They compared the CAMEL score of the bank from the period
2006-07 to 2011-12. They found that the CAMEL score of the bank was not very different
from the period when the bank was headed by a man
13. Pai (2006) in his paper entitled “Trends in the Indian Banking Industry: Analyses of Inter -
regional Trends in Deposits and Credits” reveals that the performance of banks, as far as
deposits and credits are concerned at two point of time, has been largely similar. It was also
observed that private scheduled commercial banks had shown superior performance. This
would challenge the pre-eminent position of the public sector banks. The regions studied also
reveal that their growths on these parameters, at the two points in time, have been comparable
between themselves.
14. Bodlaet al. (2006) attempted to study the “Performance of SBI and ICICI Bank through
Camel Model for the Period 2004- 05”. They found that ICICI Bank has outperformed SBI in
terms earning quality, the ratio of operating profit to average working funds, Net Profit to
Average assets, and so on. with the focus on Mergers and Acquisitions transactions in India
during the financial year- 2010-2011.For the purpose of study 10 companies were selected
from different sectors like chemicals, power, telecommunication, pharmaceutical, banking.
Steel, personal care, hospital and medical service and automobiles industry. The study shows
that the liquidity positions of the merger and acquisition has improved but it is not statistically
insignificant. The profitability position of
thecompanieshas positively increased in terms of return on capital employed, return on long t
erm funds, and return on assets and it declines in terms of return on net worth.
15. Abbas et al. (2014) assess the impact of M&A on the financial performance of banks in
Pakistan. Data was taken about 10 banks from the financial statement analysis (FSA) by State
Bank of Pakistan from the period of 2006- 2011. For the analysis of pre and post-Merger and
Acquisition performance 15financial ratios were used and to compare the results Paired
sample t-Test was used to measure the significant difference between pre and post M&A
financial performance. The overall results show that there was no significant difference in
financial performance after mergers and acquisition.
16. Ahmed (2014) measures the effect of mergers upon financial performance of manufacturing
industries in Pakistan. This research consists the sample of twelve manufacturing companies
involved in the process of merger during 2000-2009. Three years before and after-merger data
is used to test the significance of study. Paired sample t-test statistics is applied on accounting
ratios. The study concluded that overall financial performance of acquiring manufacturing
corporations insignificantly improved in after merger period. The liquidity, profitability and
capital position insignificantly improved while the efficiency deteriorated in after- merger
period.
17. Moctar (2014) carried the study to examine the impact of merger and acquisition on
the performance West African Banks. Two groups of banks have been used as case study: the
first group consists of Access bank plc Nigeria and SG-SSB Ghana two banks that have
experienced M&A and the second group consists of Zenith bank plc Nigeria and BOA Niger
that have not experienced M&A. Three groups of variables were used in this study: liquidity
ratio, performance ratios (ROA and ROE)and investment valuation variables (earnings per
share,).The study reveals that in terms of liquidity, M&A improves the situation of the banks
in short and long term. It also reveals that performance and investment variables decrease in
the period of M&A and increase two or three years later. This means that in West Africa,
M&A have significant short- and long-term positive effects on the liquidity of banks, while a
negative effect in short term and a positive effect in long term on the performance and
investment valuation variables were found.
18. A.S. Shiralashetti1in their paper “Performance appraisal of the Goad co-operative Cotton
Textile Mill Ltd, Hulkoti- A Case Study” discusses about the trends in capital employed and
net worth of the firm. It also considered the trends in sales, cost of goods sold, gross
profit/loss and net profit/loss during the period. The result were found that the overall
performance of the Goad Co-operative Cotton Textiles Mill Ltd has been poor from 2002-
2003 to 2008-09.
19. Chundawat and Bhanawat (2000) analysed the working capital management practices in
IDBI assisted tube and type companies for the period 1994-1998 by using some relevant
ratios and concluded that the working capital management of IDBI assisted companies was
more effective than the industry as a whole.
20. Deloof (2003) discussed that most of the firms had a large amount of each invested in
working capital. It can therefore be expected that the way in which working capital is
managed will have a significant impact on profitability of those firm. Using correlation and
regression tests he found a significant negative relationship between gross operating income
and the number of days accounts receivable, inventories and accounts payable of firms. On
the basis of these results, he suggested that managers could create value for their shareholders
by reducing the number of days’ accounts receivable and inventories to a reasonable
minimum.
21. DheenadayalanV. and Mrs. R. Deviananbrasi (2007) he had suggested that the “Z” score
of the sample units remain below the grey area from 1997-07 but in the year 2001-
02, the “Z” score is-0.29. After 2001-02, the decreases in the score indicate that the sample
unit is not financially sound and healthy. The sample units need to put in efforts to increases
the score. This will help the sample unit to avoid any damage to its liquidity and solvency
positions, thereby avoiding financial distress and bankruptcy.
22. Dr. Hamandou Boubacar (2011) in their paper “The financial performance of foreign Bank
subsidiaries” discuss about the relationship between the performance of bank foreign
subsidiaries and the degree of the implication of the present banks in the organization and the
management of their activities abroad. The result were found that ownership means share of
the capital held by the parent bank.
23. Dr. K. Srinvas (2010) in their paper “Pre and Post Merger financial performance of merged
Banksin India”-A selected study is conducted and analysis the financial performance of Bank
of Baroda, Punjab National Bank, Oriental Bank of Commerce, HDFC Bank, ICICI Bank
and Centurions Bank of Punjab. Then found that the private sector merged banks performed
well as compared to the public sector merged banks.
24. Dr. P.B. Bhatasna and J.R. Raiyani (2011) in their paper “A study on Financial Health of
Textile Industry in India: A “Z” –Score Approach” revealed that all the sample companies
like SPML Ltd and WIL Ltd were financially sound enough during the study period bearing
SSML and SKNL which had slightly lower “Z” score on the basis of average scores during
the study period.
25. Dr. Prasanta Paul (2011) in their paper, “financial performance evaluation – A Comparative
study of some selected “NBFCS” found that selected companies differ significantly in terms
of their financial performance indicators from one to another may be fer sha different services
they provide.
26. Eijelly , 2004 elucidated that efficient liquidity management involves planning and
controlling current assets and liabilities. The relation between profitability and liquidity was
examined,
asmeasured by current ratio and cash gap (cash conversion cycle) on a sample of joint stockco
mpaniesusingcorrelation and regression analysis. The study found that the the cash
conversion cycle was of more importance as a measure of liquidity than the current ratio that
affects profitability. The size variable was found to have significant effect on profitability at
the industry level. The result was stable and had important implications for liquidity
management
27. G.Foster in his study on financial analysis stated that “It is the process of identifying the
financial strength and weakness of the firm by properly establishing relationship between the
item in the balance sheet and the profit and loss account. Financial analysis can be under
taken by management of the firms, or by parties outside the firm , viz., owners, creditors,
investors and others.
28. M.Kannandasan (2007) he has made an attempt to have an insight into the examination of
financial health of a watch company in India. To evaluate the financial conditions and
performance of a company, this study used the Z-Score model, and finally, it was concluded
that the financial health of the company was good and financial viability is also healthy.
29. M. Velavan (2010) in his study measures “Financial Health of E.I.D. Parry Sugar Limited
using “Z” scores Model-A Case Study”. In this study, the financial health of E.I.D Parry
Sugars Limited as per Altman guide lines, the financial health of the sample units were tested
through Z-Score and finally, it was concluded that the financial health of the company was
good and financial viability is also healthy.
DATA ANALYSIS & INTERPRETATION
4.1 COMPARATIVE STATEMENT ANALYSIS

Comparative Balance Sheet
A comparative balance sheet showcases:
 Assets and liabilities of business for the previous year as well as the current year
 Changes (increase or decrease) in such assets and liabilities over the year both in
absolute and relative terms
Thus, a comparative balance sheet not only gives a picture of the assets and liabilities in
different accounting periods. It also reveals the extent to which the assets and liabilities have
changed during such periods.
Furthermore, such a statement helps managers and business owners to identify trends in the
various performance indicators of the underlying business.
What To Study While Analyzing A Comparative Balance Sheet?
A business owner or a financial manager should study the following aspects of a comparative
balance sheet:
1. Working Capital
Working capital refers to the excess of current assets over current liabilities.This helps a
financial manager or a business owner to know about the liquidity position of the business.
2. Changes in Long-Term Assets, Liabilities, and Capital
The next component that a financial manager or a business owner needs to analyze is the
change in the fixed assets, long-term liabilities and capital of a business. This analysis helps
each of the stakeholders to understand the long-term financial position of a business.
3. Profitability
Working capital refers to the excess of current assets over current liabilities.This helps a
financial manager or a business owner to know about the liquidity position of the business.
1. Following is the Balance Sheet of ICICI bank. as at 31st March, 2021:
31st 31st
March, March,
Note
Particulars 2021, 2020,
No.
(₹) (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 15,00,000 10,00,000
(b) Reserves and Surplus 10,00,000 10,00,000
2. Non-Current Liabilities
Long-term Borrowings 8,00,000 2,00,000
3. Current Liabilities
(a) Trade Payables 5,00,000 3,00,000
Total 38,00,000 25,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible Assets 25,00,000 15,00,000
(ii) Intangible Assets 5,00,000 5,00,000
2. Current Assets
(a) Trade Receivables 6,00,000 3,50,000
(b) Cash and Cash Equivalents 2,00,000 1,50,000
Total 38,00,000 25,00,000

ANSWER:
as at March 31, 2020 and 2021
Absolute Percentage
2020 2021
Particulars Change Change
(₹) (₹)
(₹) (%)
I. Equity and Liabilities

1. Shareholders’ Funds
a. Equity Share Capital 10,00,000 15,00,000 5,00,000 50.00
b. Reserve and Surplus 10,00,000 10,00,000 – –
Shareholders’ Fund 20,00,000 25,00,000 5,00,000 25.00
a. Long-term Borrowings 2,00,000 8,00,000 6,00,000 300.00
3. Current Liabilities 3,00,000 5,00,000 2,00,000 66.67
Total 25,00,000 38,00,000 13,00,000 52.00
II. Assets
a. Fixed Assets (Tangible) 15,00,000 25,00,000 10,00,000 66.67
b. Intangible Assets 5,00,000 5,00,000 - -
20,00,000 30,00,000 10,00,000 50.00
2. Current Assets
a. Trade Receivables 3,50,000 6,00,000 2,50,000 71.43
b. Cash and Cash Equivalents 1,50,000 2,00,000 50,000 33.33
5,00,000 8,00,000 3,00,000 60.00
Total 25,00,000 38,00,000 13,00,000 52.00
2.From the Following Balance Sheet of ICICI Bank. as at 31st March, 2020, prepare
Comparative Balance Sheet:
31st 31st
Note
Particulars March, March,
No.
2020 (₹) 2021 (₹)
1. Shareholder's Funds
(a) Share Capital
Equity Share Capital 10,00,000 5,00,000
Trade Payables 2,00,000 1,00,000
Total 15,00,000 10,00,000
II. ASSETS
(a) Fixed Assets:
(b) Non-Current Investments 2,00,000 2,00,000
2. Current Assets
(a) Inventories 2,50,000 1,50,000
(b) Cash and Cash 50,000
50,000
Equivalents
Total 15,00,000 10,00,000
Answer
Absolute Percentage
2020 2021
(₹) (₹)
(₹) (%)
a. Long-term Borrowings 3,00,000 2,00,000 (1,00,000) (33.33)
a. Trade Payables 1,00,000 2,00,000 1,00,000 100.00
Total 10,00,000 15,00,000 5,00,000 50.00
II. Assets
c. Non-Current Investments 2,00,000 2,00,000 - -
2. Current Assets
a. Inventories 1,50,000 2,50,000 1,00,000 66.67
b. Cash and Cash Equivalents 50,000 50,000
2,00,000 3,00,000 1,00,000 50.00
Total 10,00,000 15,00,000 5,00,000 50.00
3. Following is the summarised Balance Sheet of ICICI Bank. as at 31st March, 2021:
31st 31st
Note March, March,
Particulars
No. 2021 2020
(₹) (₹)
(a) Share Capital:
(i) Equity Share Capital 4,00,000 4,00,000
(ii) Preference Share Capital 1,00,000 1,00,000
(a) Long-term Borrowings 1. 4,50,000 4,50,000
(b) Long-term Provisions 50,000 1,00,000
(a) Trade Payables (Creditors) 5,30,000 3,30,000
(b) Short-term Provisions 50,000 50,000
Total 17,00,000 15,40,000
II. ASSETS
(a) Fixed Assets (Tangible) 9,90,000 10,40,000
(b) Non-Current Investments 1,00,000 1,00,000
2. Current Assets
(b) Cash and Cash Equivalents 2 1,10,000 1,00,000
Total 17,00,000 15,40,000

Notes to Accounts
31st 31st
March, March,
Particulars
2021 2020
(₹) (₹)
I. Long-term Borrowings
Bank Loan 3,50,000 4,50,000
8% Debentures 1,00,000 ...
4,50,000 4,50,000
2. Cash and Cash Equivalents

Bank Balance 1,00,000 90,000
Cash in Hand 10,000 10,000
1,10,000 1,00,000
Answer
Absolute
2020 2021
Particulars Change Comments
(₹) (₹)
(₹)
a. Equity Share Capital 4,00,000 4,00,000 - No Change
b. Preference Share Capital 1,00,000 1,00,000 - No Change
ii. Reserve and Surplus 1,10,000 1,20,000 10,000 Increase
Shareholders’ Fund 6,10,000 6,20,000 10,000
a. Long-term Borrowings
Bank Loan 4,50,000 3,50,000 1,00,000 Decrease
8% Debentures - 1,00,000 1,00,000 Increase
b. Long-Term Provision 1,00,000 50,000 50,000 Decrease
a. Trade Payables 3,30,000 5,30,000 2,00,000 Increase
b. Short-Term Provisions 50,000 50,000 - No Change
Total 15,40,000 17,00,000 1,60,000
II. Assets
a. Fixed Assets (Tangible) 10,40,000 9,90,000 50,000 Decrease
b. Non-Current Investments 1,00,000 1,00,000 - No Change
2. Current Assets
b. Trade Receivables 3,00,000 5,00,000 2,00,000 Increase
c. Cash and Cash Equivalents 1,00,000 1,10,000 10,000 Increase
Total 15,40,000 17,00,000 1,60,000
4. Balance Sheet of ICICI Bank. as at 31st March, 2020 is given below:
BALANCE SHEET
as at 31st March, 2019
31st March,
31st March, 2020
2021
Particulars Note No.
(₹)
(₹)
1. Shareholder's Funds
(a) Share Capital 3,26,000 2,44,000
Trade Payables 2,98,000 78,000
Total 14,20,000 8,60,000
II. ASSETS
(a) Fixed Assets 5,68,000 4,30,000
(b) Non-Current Investments 6,000 4,000

2. Current Assets
(b) Cash and Cash Equivalents 2,00,000 50,000
Total 14,20,000 8,60,000

ANSWER
Absolute Percentage
2020 2021
(₹) (₹)
(₹) (%)

a. Equity Share Capital 2,44,000 3,26,000 82,000 33.61
b. Reserves and Surplus 1,00,000 1,00,000 - -
Shareholder's Funds 3,44,000 4,26,000 82,000 23.84
3. Current Liabilities 78,000 2,98,000 2,20,000 282.05
Total 8,60,000 14,20,000 5,60,000 65.12
II. Assets
b. Non-Current Investments 4,000 6,000 2,000 50.00
4,34,000 5,74,000 1,40,000 32.26
2. Current Assets
b. Cash and Cash 50,000 2,00,000 1,50,000 300.00
Equivalents
4,26,000 8,46,000 4,20,000 98.59
Total 8,60,000 14,20,000 5,60,000 65.12
5. Following is the Balance Sheet of ICICI bank. as at 31st March, 2021:
31st 31st
March, March,
Note
Particulars 2021, 2020,
No.
(₹) (₹)
(a) Share Capital 15,00,000 10,00,000
(a) Trade Payables 5,00,000 3,00,000
Total 38,00,000 25,00,000
II. ASSETS
Fixed Assets:
2. Current Assets
(b) Cash and Cash Equivalents 2,00,000 1,50,000
Total 38,00,000 25,00,000

ANSWER:
Absolute Percentage
2020 2021
(₹) (₹)
(₹) (%)

3. Current Liabilities 3,00,000 5,00,000 2,00,000 66.67
Total 25,00,000 38,00,000 13,00,000 52.00
II. Assets
20,00,000 30,00,000 10,00,000 50.00
2. Current Assets
b. Cash and Cash Equivalents 1,50,000 2,00,000 50,000 33.33
5,00,000 8,00,000 3,00,000 60.00
Total 25,00,000 38,00,000 13,00,000 52.00
4.2 COMMON SIZE STATEMENT ANALYSIS
Common size analysis, also referred as vertical analysis, is a tool that financial managers use
to analyze financial statements. It evaluates financial statements by expressing each line item
as a percentage of the base amount for that period. The analysis helps to understand the
impact of each item in the financial statement
1.Prepare Common-size Statement
31st
Note March,
Particulars
No. 2020
(₹)
I. Income
Revenue from Operations 15,00,000
Other Income 60,000
Total Revenue 15,60,000
II. Expenses
Purchases of Stock-in-Trade 7,50,000
Change in Inventories of Stock-in-Trade 50,000
Other Expenses 2,10,000
Total 10,10,000
III. Net Profit before Tax (I-II) 5,50,000
Answer
Common Size Income Statement
for the year ended March 31, 2020
Percentage of
Absolute Revenue of
Particulars Amount Revenue from
(Rs) Operations
(%)
I. Revenue from Operations 15,00,000 100.00
II. Other Incomes 60,000 4.00
Total Revenue (I +II) 15,60,000 104.00
IV. Expenses
a. Purchases of Stock-in-Trade 7,50,000 50.00
b. Change in Inventories of Stock-in-Trade 50,000 3.33
c. Other Expenses 2,10,000 14.00
Profit before Income Tax 5,50,000 36.67
Less: Income Tax – –
Profit after Income Tax 5,50,000 36.67
2. Prepare Common-size Balance Sheet and comment on the financial position of Indian
Bank as at 31st March, 2021 are:
2021. 2020.
Particulars
(₹) (₹)
(a) Share Capital 9,00,000 12,00,000
Trade Payables (Creditors) 2,00,000 2,50,000
Total 15,00,000 18,00,000
II. ASSETS
Fixed Assets (Tangible) 10,00,000 16,00,000
2. Current Assets
Trade Receivables (Debtors) 5,00,000 2,00,000
Total 15,00,000 18,00,000
Answer
Common Size Balance Sheet
Percentage of Balance Sheet

Absolute Amount
Total
Particulars (Rs)
(%)
2021 2020 2021 2020
a. Share Capital 9,00,000 12,00,000 60.00 66.67
b. Reserve and Surplus 4,00,000 3,50,000 26.67 19.44
a. Trade Payables 2,00,000 2,50,000 13.33 13.89
Total 15,00,000 18,00,000 100.00 100.00
II. Assets
a. Fixed Assets 10,00,000 16,00,000 66.67 88.89
2. Current Assets
a. Trade Receivables 5,00,000 2,00,000 33.33 11.11
Total 15,00,000 18,00,000 100.00 100.00
3. 31st March, 2020 and 2021, prepare a Common-size statement:
Particulars Note No. 2021 2020

Revenue from Operations ₹ 25,00,000 ₹ 20,00,000
Employee Benefit
₹ 10,00,000
Expenses ₹ 7,00,000
Other Expenses ₹ 2,00,000 ₹ 3,00,000
Tax Rate 40% 40%
Answer
Common Size Statement of Profit and Loss
Percentage of Revenue from
Absolute Amount
Operations
Particulars
2020 2021 2020 2021
(Rs) (Rs) (%) (%)
I. Revenue from Operations 20,00,000 25,00,000 100 100
II. Other Income
Total Revenue (I + II) 20,00,000 25,00,000 100 100

Less: Expenses:
Employees Benefit cost 7,00,000 10,00,000 35 40
Other Expenses 3,00,000 2,00,000 15 8
Profit before Tax 10,00,000 13,00,000 50 52
Less: Tax @ 40% 4,00,000 5,20,000 20 20.80
Profit after Tax 6,00,000 7,80,000 30 31.20
5. Prepare Common-size Statement of Profit and Loss from the following Statement of Profit
and Loss:
Year I Year II
Particulars Note No.
(₹) (₹)
I. Income
Revenue from Operations (Net Sales) 14,00,000 16,00,000
II. Expenses
Purchases of Stock-in-Trade 9,00,000 10,00,000

Change in Inventories of Stock-in-Trade 1,00,000 1,80,000
Finance Costs 80,000 80,000
Other Expenses 90,000 1,30,000
Total 11,70,000 13,90,000

III. Net Profit (I-II) 2,30,000 2,10,000
IV. Less: Tax 40,000 36,000
V. Net Profit After Tax (III-IV) 1,90,000 1,74,000
Answer
Common Size Income Statement
for the year ended…..
Absolute Amount Percentage of Revenue
Particulars (Rs) (%)
Year 1 Year II Year 1 Year II
I. Revenue from Operations 14,00,000 16,00,000 100.00 100.00
II. Expenses
a. Purchases of Stock-in-Trade 9,00,000 10,00,000 64.28 62.5
b. Change in Inventories of Stock- 1,00,000 1,80,000 7.14 11.25
in-Trade
c. Finance Cost 80,000 80,000 5.71 5.00
d. Other Expenses 90,000 1,30,000 6.43 8.12
Profit before Income Tax 2,30,000 2,10,000 16.43 13.13
Less: Income Tax 40,000 36,000 2.84 2.25
Profit after Income Tax 1,90,000 1,74,000 13.57 10.88
4.3 RATIO ANALYSIS

1. The following Trading and Profit and Loss Account of Indian Bank for
the year 31‐3‐2020 is given below:
Particular Rs. Particular Rs.
To Opening 76,250 By Sales 5,00,000
Stock “ 3,15,250 “ Closing stock 98,500
Purchases 2,000
“ Carriage and Freight 5,000
“ Wages 2,00,000
“ Gross Profit b/d 5,98,500 5,98,500
1,01,000 By Gross Profit b/d 2,00,000

To Administration expenses 12,000 “ Non‐operating incomes:
“ Selling and Dist. expenses 2,000 “ Interest on Securities 1,500
“ Non‐operating expenses 7,000 “ Dividend on shares 3,750
“ Financial Expenses 84,000 “ Profit on sale of shares 750
Net Profit c/d 2,06,000 2,06,000
Answer
Gross profit
1. Gross Profit Margin = X 100
Sales
2,00,000
X 100
5,00,000
= 40%
Op. Expenses
2. Expenses Ratio = X 100
Net Sales
1,13,000
X 100
5,00,000
= 22.60%
Cost of goods sold + Op. Expenses
3. Operating Ratio = X
Net Sales 100
3,00,000 + 1,13,000
X
5,00,000 100
= 82.60%
Cost of Goods sold = Op. stock + purchases + carriage and Freight + wages – Closing
Stock
= 76250 + 315250 + 2000 + 5000 ‐ 98500
= Rs.3,00,000
Net Profit
4. Net Profit Ratio = X
Net Sales 100
84,000
X
5,00,000 100
= 16.8%
Op. Profit
5. Operating Profit Ratio = X
Net Sales 100
Operating Profit = Sales – (Op. Exp. + Admin

Exp.)
87,000
X
5,00,000 100
= 17.40%
Cost of goods sold

6. Stock Turnover Ratio =
Avg. Stock
3,00,000
87,375
= 3.43times
4.4 CASH FLOW ANALYSIS:
1. The summarized balance sheet of Indian Bank as on 31.12.20 and
31.12.2021 are as follows:
Liabilities 2006 2007 Assets 2006 2007
Share capital 1,00,000 1,00,000 Building 46,800 45,000

General Reserve 38,400 42,000 Plant and Machinery 38,280 42,030
Creditors 9,750 6,380 Goodwill 13,000 13,000
Tax provision 19,000 21,000 Investment 10,000 11,250
Prov. for doubtful debt 1,000 1,200 Stock 30,000 28,000
Debtor 22,070 22,300
Cash 8,000 9,000
1,68,150 1,70,580 1,68,150 1,70,580
After taking the following information in to account, prepare a cash flow statement for the year
ending 31.12.2021
1. The profit for 2020‐2021was Rs.8,600 against this had been charged
Dep. Rs. 3,050 and increase in provision for doubtful debt Rs.200
2. Income tax Rs.18,000 was paid during the year charged against the
provision and in addition Rs.20,000 was charged against profit and
carried to the provision.
3. An interim dividend Of Rs.5,000 was paid in January 2021
4. Additional plan was purchased in September 2006 for Rs.5,000
5. Investments (cost Rs.5,000) were sold 2007 for Rs. 4800 and on
1st march 2021another investment was made for Rs. 6,250.
Solution:
Cash flow statement for the year ended 31.12.2021
Particular Rs. Rs.
1.Cash flows from operating activities:

Net profit before tax 28,800
Adjustment for:
Depreciation 3,050
Inc. in provision for d/d 200
Dec. in stock 2,000
Dec. in creditor (3,370)
Inc. in debtor (230)
Income tax paid (18,000)
Net cash from operating activities 12,450
2. Cash flows from investing activities:

Investment purchased (6,250)
Sale of investment 4,800
Plant purchased (5,000)
Net cash from investing activities (6,450)
3.Cash flows from financing activities

Payment of interim dividend (5,000)
Net inc. in cash equivalents 1,000
Add: opening cash balance 8,000

Closing cash balance 9,000
Adjusted profit and loss A/c

Particulars Rs Particulars Rs
To Provision for tax 20,000 By profit 28,800
To Generalreserve 3,600
To Loss on sale of Invest. 200
To interimdividend 5,000
28,800 28,800
Provision for tax A/c
To Bank (tax paid ) 18,000 By Balance b/d 19,000
To Balance c/d 21,000 By P & L A/c. 20,000
(provision)
39,000 39,000
2. The Balance Sheets of a firm as on 31st December 2020 and 2021 are
given below:
Share Capital 1,00,000 1,60,000 Fixed Assets ‐ Cost 1,52,000 2,00,000
Retained Earnings Inventory 93,400 89,200
70,250 85,300
Accumulated Debtors 30,800 21,100
Depreciation 60,000 40,000
12% Debenture 50,000 ‐ Prepaid expenses 3,950 3,000
Creditors 28,000 48,000 Bank 28,100 20,000
3,08,250 3,33,300 3,08,250 3,33,300
Additional Information:
1. Net profit is Rs. 27,050.
2. Depreciation charged Rs. 10,000.
3. Cash dividend declared during the period Rs. 12,000.
4. An addition to the building was made during the year at a cost of Rs.
78,000 and fully depreciated equipment costing Rs. 30,000 was
discarded as no salvage being realized.
Prepare a Cash Flow Statement.
Solution:
Adjusted Profit & Loss Account
Particular Amount Particular Amount
To Prov. for depreciation 10,000 By Balance b/d 70,250
To Dividend 12,000
To Balance c/d 85,300 By Adj. Profit 37,050
1,07,300 1,07,300
Fixed Assets Account

To Balance b/d 1,52,000 By AccumulatedDep. 30,000
To Bank 78,000 By Balance c/d 2,00,000
2,30,000 2,30,000
Accumulated Depreciation Account

To Fixed Assets 30,000 By Balance b/d 60,000
To Balance c/f 40,000 By Profit & Loss A/c. 10,000
70,000 70,000
Cash flow statement for the year ending on 31.12.21 (As per A. S. ‐ 3)
Particulars Amount Amount

Rs. Rs.
(1) Cash Flow from Operating Activities:
37,050
Profit before tax(after non‐cash &extraordinaryitems)
Add/Less: Changes in Working Capital
- Dec. in Inventory 4,200
- Decrease in Debtors 9,700
- Increase in Creditors 20,000
- Decrease in pre‐paid expenses 950 34,850
Cash flows from operating activities 71,900
Less: Tax Paid Nil
NET CASH FLOW FROM OPERATING ACTIVITES (A) 71,900
(2) Cash Flow from Investing Activities:
- Purchase of Building (78,000)
NET CASH FLOW FROM INVESTING ACTIVITES (B) (78,000)
(3) Cash Flow from Financing Activities:
- Issued Equity Shares 60,000
- Dividend paid (12,000)
- Redemption of debenture (50,000)
NET CASH FLOW FROM FINANCING ACTIVITIES (2,000)
(C)
NET CASH FLOW FROM ALL ACTIVITES (A+B+C) (8,100)
Add: Opening Cash and Bank Balance 28,100
Closing Cash and Bank Balance 20,000
3.Prepare cash flow statement . From the following:

Liabilities 1.1.21 31.12.21 Assets 1.1.21 31.12.21
Share capital 1,00,000 4,00,000 Goodwill ‐ 20,000

8% debenture ‐ 2,00,000 Machinery 1,25,000 4,75,000
Retained earning 60,000 90,000 Stock 20,000 80,000
Creditors 40,000 1,00,000 Debtor 30,000 1,00,000
Bills payable 20,000 40,000 Bank 50,000 1,50,000
Tax provision 30,000 40,000 Cash 25,000 45,000
2,50000 8,70,000 2,50,000 8,70,000
Additional Details:
1. During 2006 the business of a sole trader was purchased by issuing
share for Rs. 2,00,000. The assets acquired from him were:
Goodwill Rs. 20,000, machinery Rs. 1,00,000 , stock Rs. 50,000 and
Debtors Rs. 30,000
2. Provision for tax charged in 2006 was Rs. 35,000
3. The debenture was issued at a premium of 5% which is included in
the retained earnings.
4. Depreciation charged on machinery was Rs.30,000.
Solution:
Particular Rs Rs

Adjustment for:
Dep. On machinery 30,000
Inc.. in creditor 60,000
Inc.. in bills payable 20,000
Inc.in stock (10,000)
Inc.. in debtor (40,000)

Machinery purchased (2,80,000)
Net cash from investing activities (2,80,000)

3.Cash flows from financing activities
Issue of shares 1,00,000
Issue of debenture 2,10,000
Cash flows from financing activities Net 3,10,000
inc. in cash equivalents 1,20,000
Closing cash balance 1,95,000

To Balance c/d 40000 By P & L A/c (provision) 35,000
65,000 84,000
Machinery A/c
To Balance b/d 1,25,000 By Depreciation 30,000
To Bank (purchase) 2,80,000 By Balance c/d 4,75,000
To Vendor 1,00,000
5,05,000 5,05,000
Share Capital A/c
By Balance b/d 1,00,000
By Vendor 2,00,000
To Balance c/d 4,00,000 By Bank 1,00,000
4,00,000 4,00,000
4.The summarized balance sheet of ICICI Bank. as on 31.12.20 and 31.12.2021 are
as follows:
Share capital 4,50,000 4,50,000 Fixed asset 4,00,000 3,20,000

General Reserve 3,00,000 3,10,000 Investment 50,000 60,000
P & l a/c 56,000 68,000 Stock 2,40,000 2,10,000
Creditors 1,68,000 1,34,000 Debtor 2,10,000 4,55,000
Tax provision 75,000 10,000 Bank 1,49,000 1,97,000
Mortgage loan ‐ 2,70,000
10,49,000 12,42,000 10,49,000 12,42,000

Additional Details:
1.Investment costing Rs. 8,000 were sold for Rs. 8,500

2.Tax provision made during the year was Rs. 9,000
3.During the year part of fixed assets costing Rs 10,000 was sold for
Rs 12,000 and the profit was included in P & L A/c. You are
required to prepare cash flow statement for 2006.
Solution:
Particular Rs. Rs.

Net profit before tax (Rs. 28,500 in case Profit on sale 31,000
on Investment & Fixed Asset not considered)
Adjustment for:
Dep. 70,000
Profit on sale of investment (500)
Profit on sale of Fixed assets (2,000)
Dec. in stock 30,000
Dec. in creditor (34,000)
Inc. in debtor (2,45,000)
Net cash from operating activities (2,24,500)

Investment purchased (18,000)
Sale of investment 8,500
Sale of Fixed assets 12,000
Net cash from investing activities 2,500
3.Cash flows from financing activities:
Mortgage loan taken 2,70,000
Net Cash Flow from all activities (A + B + C) 48,000

Add: opening cash balance 1,49,000
Closing cash balance 1,97,000
Fixed Assets A/c

To Balance b/d 4,00,000 By Bank a/c 12,000
To Profit and Loss a/c 2,000 By Dep. 70,000
By Balance c/d 3,20,000
4,02,000 4,02,000
To Balance c/d 10,000 ByP & L A/c (provision) 9,000
84,000 84,000
Investment A/c
To Balance b/d 50,000 ByBank(sale) 8,500
To P & L A/c 500 By Balance c/d 60,000
To Bank(purchase) 18,000
68,500 68,500
Adjusted P & L A/c

To Provision for tax 9,000 By Balance b/d 56,000
To Provision for G.R. 10,000 By Profit on sale of Inv. 500
To Balance c/d 68,000 By Profit on sale of F.A. 2,000
By Adjusted Profit 28,500
87,000 87,000
5. Following are the balance sheets of ICICI Bank:
Liabilities 1‐1‐20 31‐12‐20 Assets 1‐1‐20 31‐12‐20

Creditors 36,000 41,000 Cash 4,000 3,600
Loan from Partner ‐ 20,000 Debtor 35,000 38,400
Loan fromBank 30,000 25,000 Stock 25,000 22,000
Capital 1,48,000 1,49,000 Land 20,000 30,000
Building 50,000 55,000
Machinery 80,000 86,000
2,14,000 2,35,000 2,14,000 2,35,000
Prepare a cash flow statement.

Solution:
To Balance b/d 80,000 By Prov. for depreciation 36,000
To Prov. for depreciation 27,000 By Balance c/d 86,000
To Bank (purchase) ? 15,000
1,22,000 1,22,000
Particular Rs. Rs.

Adjustment for dep. 9,000
Inc. in current liabilities 36,000

Inc. in debtor 5,000
Decrease in stock (3,400)
3,000
2. Cash flows from investing activities

Purchase of land (10,000)
Purchase of building. (5,000)
Purchase of machinery (15,000)
Net cash from investing activities (30,000)

3. Cash flows from financing activities:
Loan 20,000
Repayment of bank loan (5,000)
Payment of Dividends (26,000)
(11,000)
Net cash from financing activities
Net Cash Flow from all activities (A +B + C) (400)
Closing cash balance 3,600
W. N.
Net profit before tax.
Capital (1.1.20) 1,48,000
Capital (31.12.20) 1,49,000
Diff. 1,000
Add. Dividends 26,000
27,000
5.From the following information, prepare cash flow statement:

Balance‐Sheet
Liabilities 1‐1‐2020 31‐12‐2020 Assets 1‐1‐2020 31‐12‐2020

Share Capital 2,00,000 2,00,000 Cash 8,000 10,000
Profit & Loss 50,000 90,000 Bank 22,000 20,000
Bank Loan 10,000 ‐ Debtors 10,000 20,000
Outstanding Expenses 5,000 1,000 Stock 25,000 15,000
Creditors 15,000 20,000 Non‐ current 2,35,000 2,75,000

asset
Provision for tax 20,000 25,000
Unclaimed Dividend ‐ 4,000
3,00,000 3,40,000 3,00,000 3,40,000
Solution:
Cash flow statement for the year ended on December 2020
Particulars Amount Amount

Rs. Rs.
(1) Cash Flow from Operating Activities:
Increase in Profit & Loss account 40,000 ‐
Add: Proposed dividend (10% of 2,00,000) 20,000
Net Profit 60,000
Add: Depreciation 20,000
Provision of Income tax 20,000
Funds from operations 1,00,000
Add: Increase in creditors 5,000 ‐
Decrease in stock 10,000 ‐
Less: Increase in debtors (10,000) ‐
Decrease in outstanding expenses (4,000) ‐

Cash generated from operations 1,01,000
Less: Tax paid (15,000) ‐
NET CASH PROVIDED BY OPERATING ACTIVITIES 126000‐ 86,000
(A) 40000‐
26000
(2)Cash Flow From Investing Activities:
Purchase of Non ‐current Asset (2,95,000 – 2,35,000) (60,000)
NET CASH PROVIDED BY INVESTING ACTIVITIES (60,000)
(B)
(3)Cash Flow From Financing Activities :
Repayment of loan (10,000)
Repayment of dividend (20,000 – 4,000) (16,000)
NET CASH PROVIDED BY FINANCING ACTIVITIES (26,000)
(C)
NET CASH FLOW FROM ALL ACTIVITES (A+B+C) Nil
Add:‐ Opening balance of cash & bank 30,000
Closing balance of cash & bank 30,000
FINDINGS, SUGESSTION, CONCLUSION
FINDINGS OF THE STUDY:
 ICICI bank is largest private sector bank in India; recently it has acquired the position
of universal bank. Universal bank with extensive network of branches that provide
many different financial services and are principally engaged in commercial banking,
investment banking, securities and even insurance.
 ICICI bank offers innovative services to customers.
 ICICI bank believes in technological up gradation in distribution of its services.
 Customers of ICICI bank are satisfied with various services offered by ICICI bank.
 SBI also one of the successful private sector banks in India. It is the bank that has
pioneered many services first time in India. SBI was the first to offer a product called
one view by which customers are able to view their accounts in six banks on one page
on their website. SBI Bank also the pioneer, in introducing a product called Net safe,
which makes online shopping on net using debit card, making it safer.
 Housing Loan, which is SBI’s domain, will no longer remain the same because; ICICI
bank is slowly capturing the housing loan market. In fact both the banks do not have
very significant difference in terms of marketing its products to customers and also in
terms of customer satisfaction.
 A ratio used to measure a company's pricing strategy and operating efficiency.

Operating margin is a measurement of what proportion of a company's revenue is left
over after paying for variable costs of production such as wages, raw materials, etc. A
healthy operating margin is required for a company to be able to pay for its fixed
costs, such as interest on debt. It Is Also known as "operating profit margin." It shows
that operating efficiency of SBI is better than ICICI. While operating efficiency of
ICICI is lower than SBI.
 A financial metric used to assess a firm's financial health by revealing the proportion
of money left over from revenues after accounting for the cost of goods sold. Gross
profit margin serves as the source for paying additional expenses and future savings.
It is also known as "gross margin". This ratio shows financial position of company.
Here, financial position of SBI is better than ICICI.
 For a business to survive in the long term it must generate profit. Therefore the net
profit margin ratio is one of the key performance indicators for your business. The net
profit margin ratio indicates profit levels of a business after all costs have been taken
into account. It is worth analyzing the ratio over time. A variation in the ratio from
year to year may be due to abnormal conditions or expenses. Variations may also
indicate cost blowouts which need to be addressed.
 A decline in the ratio over time may indicate a margin squeeze suggesting that
productivity improvements may need to be initiated. In some cases, the costs of such
improvements may lead to a further drop in the ratio or even losses before increased
profitability is achieved. This ratio is key performance indicators for business. Key
performance means the profit level of company we can say that performance of SBI is
better than ICICI.]
SUGESSTIONS OF THE STUDY:
 The staff of SBI and ICICI bank has to be courteous and polite.
 The banks required hiring right kind of people, with adequate knowledge of banking
especially at banks call centres.
 Training programmes should be devised for all staff including call centre and Staff of
Direct Sales Associates or Associates of these banks. More importance should be
given to upgrade product knowledge and communication skills in such training
programmes.
 There is a need for banking staff to have training in the areas of technology and
interactive skills.
 The marketing personnel selected by direct sales associates of ICICI bank and SBI
should be more qualified, in terms of education, product knowledge, communication
skills etc. In the bank the customer ahs his first introduction with bank at front desk.
 The person who is presenting the services to the customers is identified with the
services offered so the banker or the professional who is offering the banking services
to the customers should be good in his appearance, his attitude which should be
appealing to the customers. Proper dress code, perfect surroundings, attractive
interiors, ambience and courteous staff at the counters are must to attract the
customers.
 The personnel at front desk also need to be developed to deliver service quality.
 The bank should attract best talent and retain that talent by right kind of policies in
respect of salary, incentives, etc. Develop service oriented internal processes. Include
employees in the banks vision.
 Right kind of reward to be provided to strong service provider.
 To increase the profit of bank, bank should decrease their operation expenses and
increases their income.
 To increase its liquidity, bank should keep some more cash in its hands instead of
giving more and more advances.
 Introduce quality consciousness and standardization of the work system and

procedure.
 Make manager competitive and introduce spirit of market-orientation and culture of
working for customer satisfaction.
CONCLUSION:
 The overall financial performance of ICICI banks in India for the period of 2014-
2018. It is found that under the capital adequacy ratio parameter bank was at the
average, asset quality parameter
 ICICI bank was moderate, management efficiency parameter ICICI bank was in an
increasing trend, earning quality parameter the ICICI bank was in an growing trend
and liquidity parameter ICICI bank were on the top position.
 The study concludes to be valuable to ICICI bank as it is based on the opinion of
customers and bank employees (marketing staff). It is useful for other private sector
and Public sector banks also in formulating their policies regarding launch of new
banking product, in order to reach the level of success achieved by these two banks.
 It also point out reasons for dissatisfaction among bank customers and provide
meaningful solution to their problems. The study conducted will help the private
Sector Banks and Public Sector Banks in addressing the marketing problems and
difficulties faced by these banks while marketing their services to customers. The
study also helps in solving the problems faced by the customers and the effective
implementation of marketing strategies of private sector and Public sector banks.
 The ratio analysis and trend analysis and balance sheet show that ICICI bank’s
financial position is good. Bank’s profitability is increased at high rate. Bank’s
liquidity position is fair but not good because the bank is invested more in current
assets than liquid assets. As we all know that ICICI bank is on the second position
among all the private sector bank of India in all area but it should pay attention on its
profitability and liquidity. Banks’s position is stable
APPENDIX
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 Srinivas, K (Dr.) ‘Pre and Post Merger financial performance of merged Banks in
India’ Indian Journal of Finance, Vol.4, No.1 January 2010, p.3-19.
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Model-A Case Study” Indian Journal of Finance, Vol. 4, No.11 Nov 2010 p.30-43.
ADDITIONAL INFORMATION:
ICICI Bank is a leading private sector bank in India. The Bank's consolidated total assets
stood at Rs. 14.76 trillion at September 30, 2020. ICICI Bank currently has a network of
5,418 branches and 13,626 ATMs across India.
Brand name- Almost 30% employees and ex-employees opted to work with ICICI bank
because of the brand name. Being one of largest private banks in India, ICICI is known
for its achievements.
Quality of work- For the workaholic millennial today, the quality of work matters a lot.
Nearly 20% employees and ex-employees have positively reviewed the bank on the
quality of work
Work environment- Most of us look for a dynamic work culture. According to the
reviews by 15% employees, ICICI provides a good working culture.
Colleagues- A lot of your professional performance depends on your team and office
peer. Nearly 15% of the employees enjoy working with the office colleagues in ICICI
bank.
Training and Development- With the technology advancing on each passing day. It’s
important for us to be updated with every working technique. Approximately 15% of
employees find the bank to be a better place for training and development.
ICICI Bank Limited is an Indian multinational bank and financial services company
headquartered in Vadodara. It offers a wide range of banking products and financial
services for corporate and retail customers through a variety of delivery channels and
specialized subsidiaries in the areas of investment banking, life, non-life insurance,
venture capital and asset management.
The bank has a network of 5,275 branches and 15,589 ATMs across India and has a
presence in 17 countries. The bank has subsidiaries in the United Kingdom and Canada;
branches in United States, Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai
International Finance Centre, China and South Africa as well as representative offices in
United Arab Emirates, Bangladesh, Malaysia and Indonesia. The company's UK
subsidiary has also established branches in Belgium and Germany
ICICI Bank is one the largest banks in India. With more than 3000 reviews and a 3.36
rating on JobBuzz, ICICI bank is one employee friendly organisation. The company
offers some extra ordinary rewards and benefits to its employees, making it one of the
best places to work.
According to the company ratings on Jobuzz, 65% people voted the bank to be the best in
terms of salary. About 62% employees like the work-life balance it provides. Nearly 70%
candidates enjoy the working culture and approximately 67% have rated it to be good in
terms of growth prospects.
ICICI was formed in 1955 at the initiative of the World Bank, the Government of India
and representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-term project
financing to Indian businesses. Until the late 1980s, ICICI primarily focused its activities
on project finance, providing long-term funds to a variety of industrial projects. With the
liberalization of the financial sector in India in the 1990s, ICICI transformed its business
from a development financial institution offering only project finance to a diversified
financial services provider that, along with its subsidiaries and other group companies,
offered a wide variety of products and services. As India’s economy became more
market-oriented and integrated with the world economy, ICICI capitalized on the new
opportunities to provide a wider range of financial products and services to a broader
spectrum of clients. ICICI Bank was incorporated in 1994 as a part of the ICICI group. In
1999, ICICI became the first Indian company and the first bank or financial institution
from non-Japan Asia to be listed on the New York Stock Exchange.
The issue of universal banking, which in the Indian context meant conversion of long-
term lending institutions such as ICICI into commercial banks, had been discussed at
length in the late 1990s. Conversion into a bank offered ICICI the ability to accept low-
cost demand deposits and offer a wider range of products and services, and greater
opportunities for earning non-fund based income in the form of banking fees and
commissions. After consideration of various corporate structuring alternatives in the
context of the emerging competitive scenario in the Indian banking industry, and the
move towards universal banking, the managements of ICICI and ICICI Bank formed the
view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative
for both entities, and would create the optimal legal structure for ICICI group's universal
banking strategy. The merger would enhance value for ICICI shareholders through the
merged entity's access to low-cost deposits, greater opportunities for earning fee-based
income and the ability to participate in the payments system and provide transaction-
banking services. The merger would enhance value for ICICI Bank shareholders through
a large capital base and scale of operations, seamless access to ICICI's strong corporate
relationships built up over five decades, entry into new business segments, higher market
share in various business segments, particularly fee-based services, and access to the vast
talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger
of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal
Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The
merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the
High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature
at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the
ICICI group's financing and banking operations, both wholesale and retail, were
integrated in a single entity.

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FINANCIAL STATEMENT ANALYSIS ON

Submitted as a part of MBA 1st year course requirement

Under the guidance of

S.R.M INSTITUTE OF SCIENCE AND TECHNOLOGY

DEPARTMENT OF MANAGEMENT STUDIES

2. Profile: Includes essential Includes Essential material not

NEED FOR THE STUDY:

To compare results and performance: By calculating ratios, an insight of how management

SCOPE OF THE STUDY:

 The study of financial performance helps to understand the overall profitability

Industry: Financial Services, banking

Ticker Symbol & Exchange: ICICIBANK (NSE)

Market Cap*: $70.0B

Revenue: Rs. 91,246.94 crore (US$13 billion) (2020)

Founded: 5 January 1994

Area served: Worldwide.

3. Bansal (2010) studied the impact of liberalization on productivity and profitability of

4.1 COMPARATIVE STATEMENT ANALYSIS

Total 38,00,000 25,00,000

I. Equity and Liabilities

Total 25,00,000 38,00,000 13,00,000 52.00

(b) Reserves and Surplus 1,00,000 1,00,000

Long-term Borrowings 2,00,000 3,00,000

Total 15,00,000 10,00,000

Total 15,00,000 10,00,000

Total 17,00,000 15,40,000

Total 17,00,000 15,40,000

2. Cash and Cash Equivalents

4. Balance Sheet of ICICI Bank. as at 31st March, 2020 is given below:

(b) Non-Current Investments 6,000 4,000

Total 14,20,000 8,60,000

I. Equity and Liabilities

Total 8,60,000 14,20,000 5,60,000 65.12

Total 38,00,000 25,00,000

I. Equity and Liabilities

Total 25,00,000 38,00,000 13,00,000 52.00

1.Prepare Common-size Statement

Percentage of Balance Sheet

3. 31st March, 2020 and 2021, prepare a Common-size statement:

Particulars Note No. 2021 2020

Total Revenue (I + II) 20,00,000 25,00,000 100 100

Profit after Tax 6,00,000 7,80,000 30 31.20

Revenue from Operations (Net Sales) 14,00,000 16,00,000

Purchases of Stock-in-Trade 9,00,000 10,00,000

Total 11,70,000 13,90,000

4.3 RATIO ANALYSIS

1,01,000 By Gross Profit b/d 2,00,000

= 76250 + 315250 + 2000 + 5000 ‐ 98500

Operating Profit = Sales – (Op. Exp. + Admin

Cost of goods sold

Liabilities 2006 2007 Assets 2006 2007

Share capital 1,00,000 1,00,000 Building 46,800 45,000

1.Cash flows from operating activities:

2. Cash flows from investing activities:

Net cash from investing activities (6,450)

3.Cash flows from financing activities

Add: opening cash balance 8,000

Adjusted profit and loss A/c

Fixed Assets Account

Accumulated Depreciation Account

Particulars Amount Amount

3.Prepare cash flow statement . From the following: