Project Title: Role of Insurance Companies in minimizing

Business Risks

A project submitted in partial fulfilment of the requirements

for the Degree of

Bachelor of Commerce(B.COM HONS.)

By

Name: UMANG RAJ

Roll No:

211605413735

Registration No:

KU2022043

Session: 2020-23

Under The Supervision

of Dr. Aftab Alam

Faculty of Commerce, Karim City College, Jamshedpur

1
 Faculty of Commerce

Karim City College, Jamshedpur

CERTIFICATE OF APPROVAL
The foregoing project report entitled “Role of Insurance
Companies in minimizing Business Risks” is hereby
approved as accreditable study of project topic and has
been presented in satisfactory manner to warrant its
acceptance asprerequisite to the degree conclusion
drawn or opinion expressed there in, but approved the
project report for the purpose for which it is submitted
for which it has been submitted.
It is understood that by this approval, the undersigned
do not necessarily endorse any conclusion drawn or
opinion expressed therein but approved the project
report for the purpose for which it is submitted.

PROJECT SUPERVISOR EXTERNAL EXAMINER

Dr. Aftab Alam
2
 Acknowledgement

I express my deep sense of gratitude and indebtedness to my

project supervisor Dr. Aftab Alam for providing precious guidance,
inspiring discussions and constant supervision throughout the
course of this work. His timely help, constructive criticism and
conscientious efforts made it possible to present the work contained
in this project. I am also thankful to our HOD Dr. M.M. Nazri for his
help during my project work. My sincere thanks to all faculty
members of Commerce who helped directly or indirectly in the
completion of this project.
I am also thankful to our Honourable Prof-in-charge Dr Mohammad
Reyaz for their inspiration.
Last but not least I feel pleasure and privileged to fulfill my parents
ambition and I am greatly indebted to them for bearing the
inconvenience during my Bachelor of Commerce Course.

Name of the Student : UMANG RAJ

University Roll No:
211605413735
Reg. No: KU2022043

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 LIST OF TABLES

TABLE TABLE TITLE PAGE

NO. NO.

1 Comparative balance sheet 35

2 Financial statement 38
3 Comparative P/L 39
4 Common size balance sheet of ICICI 44
5 Common size statement of P/L 46

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 LIST OF FIGURES

FIGURE NO. FIGURE TITLE PAGE NO.

Ratio analysis
1 40

2 Quick ratio 41

3 Debt to equity ratio 42

4 Total assets to debt ratio 43

Proprietary ratios

5 43

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 CONTENTS

Serial no. Title Page No.

Abstract 7
1. Introduction 8-15

1.1 Background
1.2 Introduction
1.3 Need of study
1.4 Objective of study
1.5 Scheme of chapterisation

2. Literature review 16-22

3 Profile of ICICI 23-34

3.1 History of ICICI

3.2 Board of directors
3.3 Business objective
3.4 Products and services
3.5 Wholesale Banking

4 Data analysis and data interpretation 35-48

4.1 Financial Performance Analysis

4.2 Financial Performance Analysis
4.3 Ratio Analysis Common Size
4.4 Balance Sheet of ICICI Bank from 2015-
2016 to 2018-2019
4.5 Common Size Statement of Profit & Loss
A/c of ICICI Bank from 2015-2016 to
2018-2019
5 Findings and suggestion, conclusion 49-54

Reference 55

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 ABSTRACT

Insurance companies, like HDFC Life, serve as indispensable partners in mitigating

business risks by providing a protective shield for individuals and enterprises. This abstract
delves into how HDFC Life and similar insurers contribute to risk reduction in the corporate
sphere.

HDFC Life and analogous insurance providers extend a spectrum of insurance products
that aid enterprises in risk alleviation. Most significantly, life insurance policies offered by
HDFC Life serve as a financial safety net for business proprietors and their families. These
policies offer a financial buffer in the event of the owner's premature demise or
incapacitation. They ensure that any outstanding debts are covered, the business's financial
stability is preserved, and a seamless transition of ownership is facilitated. This curtails the
risk of financial turmoil and potential business discontinuity.

Furthermore, HDFC Life offers insurance plans tailored for key personnel within a company.
Key person insurance plays a pivotal role in protecting the enterprise if a critical employee,
such as the CEO or a key staff member possessing specialized skills, passes away or
becomes disabled. These policies help in recruiting and training replacements, ensuring
business continuity, thereby mitigating the risk associated with losing indispensable talent.

Beyond life insurance, HDFC Life provides comprehensive risk management solutions
through various general insurance policies. These encompass coverage for property,
assets, liability, and more. In case of unforeseen contingencies like natural calamities,
accidents, or legal disputes, businesses can rely on insurance to cushion financial losses,
thereby averting severe setbacks or the specter of bankruptcy.

Another pivotal dimension is health insurance. HDFC Life offers group health insurance
policies for employees. By granting access to quality healthcare, businesses guarantee the
health and productivity of their workforce. A robust workforce reduces the risk of
absenteeism due to illness and sustains productivity, ultimately bolstering the business's
financial health.

Moreover, HDFC Life's pension and retirement plans empower employees to chart their
financial future. These retirement benefits curtail the risk of post-retirement financial burdens
on employees, which could potentially lead to disputes and liabilities for the business.

In summary, insurers like HDFC Life function as collaborative risk management allies for
businesses. Their extensive array of insurance products aids in mitigating risks stemming
from unforeseen events, financial instability, and concerns related to key personnel and
employees' well-being. By harnessing these insurance solutions, enterprises can
concentrate on expansion and progress while maintaining a protective buffer—vital for a
holistic risk management strategy.

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 CHAPTER 1
INTRODUCTION

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 CHAPTER 1 – INTRODUCTION

1.1. BACKGROUND
The history of insurance traces the development of the modern business of insurance
against risks, especially regarding cargo, property, death, automobile accidents, and
medical treatment.

The insurance industry helps to eliminate risks (as when fire-insurance providers demand
the implementation of safe practices and the installation of hydrants), spreads risks from
individuals to the larger community, and provides an important source of long-
term finance for both the public and private sectors.

Merchants have sought methods to minimize risks since early times. Pictured, by
Ferdinand Bol, c. 1680.

Methods for transferring or distributing risk were practiced

by Babylonian, Chinese and Indian traders as long ago as the 3rd and 2nd millennia BC,
respectively. Chinese merchants travelling treacherous river rapids would redistribute
their wares across many vessels to limit the loss due to any single vessel capsizing.

Codex Hammurabi Law 238 (c. 1755–1750 BC) stipulated that a sea captain, ship-
manager, or ship charterer that saved a ship from total loss was only required to pay one-
half the value of the ship to the ship-owner. The second volume of the codification of
laws
ordered by Justinian I (527–565), a legal opinion written by the Roman jurist Paulus in
235 AD was included about the Lex Rhodia ("Rhodian law"). It articulates the general
average principle of marine insurance established on the island of Rhodes in
approximately 1000 to 800 BC, plausibly by the Phoenicians during the proposed Dorian
invasion and emergence of the purported Sea Peoples during the Greek Dark Ages (c.
1100–c. 750).

The law of general average is the fundamental principle that underlies all insurance. In
1816, an excavation in Minya, Egypt produced a Nerva–Antonine dynasty-era tablet from
the ruins of the Temple of Antinous in , Aegyptus. The tablet prescribed the rules and
membership dues of a burial society collegium established in , Italia in approximately 133
AD during the reign of Hadrian (117–138) of the Roman Empire.

9
. The ancient Greeks had marine loans. Money was advanced on a ship or cargo, to
be repaid with large interest if the voyage prospers. However, the money would not
be repaid at all if the ship were lost, thus making the rate of interest high enough to
pay for not only for the use of the capital but also for the risk of losing it (fully
described by Demosthenes). Loans of this character have ever since been common in
maritime lands under the name of bottomry and respondentia bonds.

The direct insurance of sea-risks for a premium paid independently of loans

began in Belgium about 1300 AD.

Separate insurance contracts (i.e., insurance policies not bundled with loans or other
kinds of contracts) were invented in Genoa in the 14th century, as were insurance
pools backed by pledges of landed estates. The first known insurance contract dates
from Genoa in 1347. In the next century, maritime insurance developed widely, and
premiums were varied with risks. These new insurance contracts allowed insurance
to be separated from investment, a separation of roles that first proved useful in
marine insurance.

The earliest known policy of life insurance was made in the Royal Exchange, London,
on the 18th of June 1583, for £383, 6s. 8d. for twelve months on the life of William
Gibbons.

1.2 INTRODUCTION

Insurance companies may provide any combination of insurance types, but are
often classified into three groups:

• Life insurance companies, that provide life insurance, annuities and pensions
products and bear similarities to asset management businesses
• Non-life or property/casualty insurance companies, which provides other
types of insurance.
• Health insurance companies, which sometimes provide life insurance or
employee benefits as well

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General insurance companies can be further divided into these sub categories.

• Standard lines
• Excess lines

In most countries, life and non-life insurers are subject to different regulatory regimes
and different tax and accounting rules. The main reason for the distinction between the
two types of company is that life, annuity, and pension business is long-term in nature –
coverage for life assurance or a pension can cover risks over many decades. By
contrast, non-life insurance cover usually covers a shorter period, such as one year.

Insurance companies are commonly classified as either mutual or proprietary companies.

Mutual companies are owned by the policyholders, while shareholders (who may or may not
own policies) own proprietary insurance companies.

Demutualization of mutual insurers to form stock companies, as well as the formation of a

hybrid known as a mutual holding company, became common in some countries, such as
the United States, in the late 20th century. However, not all states permit mutual holding
companies.

Captive insurance companies can be defined as limited-purpose insurance companies

established with the specific objective of financing risks emanating from their parent group
or groups. This definition can sometimes be extended to include some of the risks of the
parent company's customers. In short, it is an in-house self-insurance vehicle. Captives may
take the form of a "pure" entity, which is a 100% subsidiary of the self-insured parent
company; of a "mutual" captive, which insures the collective risks of members of an industry;
and of an "association" captive, which self- insures individual risks of the members of a
professional, commercial or industrial association.
Captives represent commercial, economic and tax advantages to their sponsors because of
the reductions in costs they help create and for the ease of insurance risk management and
the flexibility for cash flows they generate. Additionally, they may provide coverage of risks
which is neither available nor offered in the traditional insurance market at reasonable prices.

The types of risk that a captive can underwrite for their parents include property damage, public
and product liability, professional indemnity, employee benefits, employers' liability, motor and
medical aid expenses. The captive's exposure to such risks may be limited by the use of
reinsurance.Captives are becoming an increasingly important component of the risk
management and risk financing strategy of their parent. This can be understood against the
following background:
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\

• Heavy and increasing premium costs in almost every line of coverage

• Difficulties in insuring certain types of fortuitous risk
• Differential coverage standards in various parts of the world
• Rating structures which reflect market trends rather than individual loss experience
• Insufficient credit for deductibles or loss control efforts

1.3 NEEDS OF THE STUDY

Insurance works like a cushion which helps you or your family bounce back
financially after an unfortunate event. Whether it's business or family both can benefit
immensely from insurance.
1.3.1 Distributes Large Risks

Insurance is a financial instrument. The risk of significant loss due to an event is borne
by a large group of people exposed to the same possibility in a business. Thus, the
losses are distributed over a large group making it bearable for each individual.

1.3.2 Provides Financial Stability

Without insurance, it will be extremely costly for businesses to bounce back after a
major loss of inventory. Natural hazards, accidents, theft or burglary can affect the
financial status of a business or a family. With Insurance compensating a large part
of the losses businesses and families can bounce back rather easily.

1.3.3 Helps Economic Growth

Insurance companies pool a large amount of money. Part of this money can be
invested to support investment activities by the government. Due to the safety
concerns insurers only invest in Gilts or government securities. On the other hand,
governments can raise funds easily from insurers for large public projects, which
aid in economic growth.

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.3.4. Generates Long-Term Wealth

Insurance is often a long-term contract, especially life insurance. Life insurance plans
can continue for more than three decades. Within this time they will collect a large
amount of wealth, which returns to the investor if they survive. If not, the wealth goes
to their family.

1.4 OBJECTIVES OF THE STUDY

Granting Security To People

Insurance primarily serves the purpose of granting security against losses and damages
to people. It is an agreement enters into by two parties in which one promises to protect
other from losses in return for premium paid by other party. One party is insurance
company and other one is insured. Insurance companies guarantee the insured of
compensation in case of any unfavourable contingency. Insured need to pay premium to
insurance companies in return for guarantee of compensation.
Minimization of Losses
Insurance aims at minimization of losses arising from future risks and uncertainties. It
adds certainty of payments to people for happening of uncertain events. Insurance
assures the individuals for compensation of losses. It minimizes the risk through proper
planning and
administration. Insurance companies suggest people for taking safety measures like
installation of fire detection devices, alarm and cameras system etc. They also join
hands with various organizations like fire brigade, health and various organizations
which work for reducing losses and damages. This way insurance works toward
minimizing the happening of various losses.
Diversifying The Risk
Insurance works towards diversifying the risk among large number of people. It aims at
reducing the adverse effects of any future contingency by spreading the overall risk
associated with it. It is medium through which people share their risk with others.
Insurance companies compensate the insured for losses out of premium they charged
from their different policy holders. The loss incurred by single individual is diversified
among large peoples by insurance companies by utilising the collected premium
amount for paying compensations.

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Reduces The Anxiety And Fear
Insurance policies relieves the individuals of any tension and fear regarding the future

risks and uncertainties. It guarantees them of compensation in occurrence of any

unfavourable contingencies. Assurance of compensation is the most relieving factor for
tensed and worried people. They are certain of payment on occurrence of various
uncertain events. It makes them confident and they focus on their activities with full
attention.

Mobilises The Saving

Mobilization of savings is another important objective of insurance. It attracts people for

investments by presenting them with numerous insurance policies guarantying of
compensation for losses. Large number of people takes this insurance policy in order to
insure them against losses and damages. Insurance companies are able to generate
large amount of funds in the form of premium that they charged from their policy holders
regularly. These funds are then invested by these companies into securities and stock
in market and earn incomes. Ideal lying resources with public are employed by
insurance companies towards income generating sources.
Generation Of Capital
Insurance companies leads to capital generation by collecting large amount of funds from
public. They regularly charges premium from their large customers for providing them
protection against losses. These funds are invested for industrial development by
subscribing to shares of companies. Companies are able to get their required capital
through insurance industry as this invests in companies for earning dividends and other
incomes. This boosts the industry performance and economic growth of country. Also,
bigger investments lead to creation of various employment opportunities.

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 1.5 SCHEME OF CHAPTERISATION
The study comprises of six chapters

Chapter -1 Introduction

The first chapter deals with the introduction and design of the study. The content of the
chapter are introduction,background of the study, needs of the study, objective of the study.

Chapter -2 Review of Literature

This chapter includes literature review of the study.

Chapter -3 PROFILE OF AN ORGANISATION

This chapter is confined with an overview of the topic (ICICI)

Chapter-4 Data Analysis and Interpretation

This chapter includes analysis and interpretation of Data collected through Questionnaires.

Chapter -5 Findings, Suggestions and Conclusion

This chapter includes the Findings, suggestions and conclusion of the entire project.

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 CHAPTER 2
LITRATURE REVIEW

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 CHAPTER 2- LITERATURE REVIEW

➢ Alok Mittal and Akash Kumar

YEAR Written: 2003

CONTEXT: “An Exploratory Study of Factors Affecting Selection of Life Insurance

Products”

in their study “An Exploratory Study of Factors Affecting Selection of Life Insurance
Products” have attempted to identify the factors which are affecting the consumers in
taking into consideration before selecting a life insurance product and determining the
extent to which these factors are taken into consideration for choosing life insurance
products. The study highlighted that consumers take into consideration factors like
product attributes, customer delight, payment mode, product flexibility, risk coverage,
grace period, professional advisor, and maturity period as important before making a
decision on selection of a life insurance product but most important factors which are of
vital importance was product attributes, and the least important was maturity period.

➢ T. Venkateswara Rao
Date Written: March 16, 2004

Context: “Alternative Distribution Channels in India”

In Global Conference of Actuaries. This research points out that a distribution channel
means a set of interdependent organizations involved in the process of making a product
or service available for use or consumption by the consumer by creating place utility &
the value of having the products where the customer wants them, when they want them.
The research said that in Distribution in Life Insurance requires the intermediaries. The
current insurance market depends heavily on Individual Agency channel but it concluded
that Alternative distribution channels can give competitive edge for the Insurers, a
statistics of Alternative Distribution channels of LIC suggest that corporate agencies
including banks are garnering 82% and the rest 18% is coming from Brokers & Over time
bancassurance may get at least 20% distribution share in life insurance market.

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 Sinha and Tapen

Year Written: 2005

CONTEXT: “The Indian Insurance Industry: Challenges and Prospects”

in their research article “The Indian Insurance Industry: Challenges and Prospects” have
stated that India is among the most promising emerging insurance markets in the world.
But out of total insurance premium market in India particularly life insurance currently
makes up 80% of premiums. The research also highlighted that when India undertook
to open the domestic insurance market to private-sector and foreign companies since
then, 13 private life insurers and eight general insurers have joined the Indian market.
But speaking about major hurdles this research spoke on the obsolete regulations on
insurance prices which have to be replaced by risk- differentiated pricing structures. .
Furthermore it said that both the life and non-life insurance sectors would benefit from
less invasive regulations. The author also suggested that Price liberalization will be
needed to improve underwriting efficiency and risk management and the Private insurers
will have a key role to play in serving the large number of informal sector workers.

➢ Ragni M. Shah
Year written: 2007

CONTEXT: “Creating Consumer Awareness in Life Insurance”

Paper Presented at the C.D.Deshmukh Seminar on “Creating Consumer Awareness in

Life Insurance” has analysed as how to harness huge untapped market potential for life
insurance to the benefit of vast rural and semi urban populace. The paper has quoted
the famous line - “customer is business, business is people, people are customers” in
context of consumer awareness. The paper emphasises that Consumer awareness will
provide a new frame of reference for value creation as also an opportunity for innovation
and also have emphasised on campaigns to educate rural and semi urban masses on
the need for security that protects their livelihood, security for produce and belongings
and create feel-good feeling. In summary it states that a new phenomenon will emerge
where Market dynamics will rule and unfold a stage through a process of evolution by co-
creating unique value with customers will merge as expounded by Prof. C.K. Praha lad in
his later path-breaking Title “ The Future of Competition : Co-creating Unique Value with
Customers”.

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➢ Devasenathipathi, Saleendran and Shanmugasundaram

Year Written: 2007

CONTEXT: “A Study on Consumer Preference and Comparative Analysis of All

Life Insurance Companies”

The study analyzed and ratedall life insurance firms by analyzing certain factors. They
examined the effect of privatization, measured customer perception, purchase behavior
and consumer awareness regarding life insurance products.

➢ Harpreet Singh & preet Singh

Year Written: 2011

CONTEXT: “An Empirical Analysis Of Insurance Industry In India”

in their research, “An Empirical Analysis Of Insurance Industry In India” have analyzed
the overall performance of Life Insurance Industry of India between pre- and post-
economic reform era and also measure the current status, volume of competitions ,
challenges faced by the Life Insurance Corporation of India and lastly to measure the
effectiveness of investment strategy of LIC over the period 1980 to 2009.They have
highlighted the role of LIC as a primary player in life insurance and how there is growth
in performance of Indian Life Insurance industry and LIC due to the policy of LPG. They
have summarized that Total investment of LIC rose from Rs 4587.7 crores in 1979 to Rs.
762891.7 crores in 2009. Proportion of premium collected by LIC out of total premium
collected by life insurance industry is declined from 97% in 2001-02 to 74% in 2007-08. It
indicates the increasing competition from private sector. ICICI prudential is becoming a
stronger and stronger player by taking over a lot of business of LIC due to aggressive and
flexible product range. But still there is a lot of scope of development in the life insurance
industry where private sector will be a challenge in the front of LIC

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 Santosh D. and Upinder D.

Year Written: 2007

CONTEXT: “Future changes in the market of Insurance industry”

The Insurance industry is going to undergo a vast change in its marketing practices,
as well as its marketing strategies. The existing and new firms will have to work out
different strategies to keep and improve their market share.

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➢ Pramod P. and Saumya S.
Year Written: 2003
CONTEXT: “SWOT analysis to advise effective strategies”
In their research article tried to find out the competitiveness between LIC and the new
players and carried out as SWOT analysis to advise effective strategies. The objective
of this article was to assist the public sector insurance giant to boost the market
share, to help LIC to retain old customers, and to attract new customers.

➢ Ajay K. R. and Mukesh D.

Year Written: 2002

CONTEXT: “Private firms concentrate on business only in the urban areas, due
to a lucrative market response”

The study has focused upon the social implications in opening up of the insurance
sector to private firms to identify reasons as to why there was private entry after
nationalization, what the social aspects are so far and how the reforms have taken
place in the Indian insurance industry. The issues faced by private firms due to
competition are to enhance resource optimization, reduce premium cost, mobilize
funds domestically, offer better pay packages and attract inflow of foreign capital.
This study has also revealed that, most of the private firms concentrate on business
only in the urban areas, due to a lucrative market response.

➢ Nikhil G.
Year Written: 2001

CONTEXT: “Private player’s viewpoint is to sell the product for customers at

their own risk”

In his article has identified, that the strategies that Indian insurance firms adopt, is
hinged upon the product’s essential usefulness in providing safety features. The
author highlights the growing proportional aspects, penetration levels and other macro
factors affecting the global insurance market during the year 1999. Each private
player’s viewpoint is to sell the product for customers at their own risk.

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➢ Mishra and Smita M.

Year Written: 2000

CONTEXT: “Top ten largest insurance markets and how they are ranked by
revenue in the year 1998”

In their study, they compared the position of the Indian insurance sector to European
countries, in which life insurance accounted for 58% of the global direct premium
and non- life comprised 42%. The study states that the need for insurance arises
when economic activity increases, families become nuclear, kins gets
geographically dispersed and
individuals become more dependent on employment. The author analysed the top ten
largest insurance markets and how they are ranked by revenue in the year 1998.

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 CHAPTER 3
PROFILE OF ICICI

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 CHAPTER 3 – PROFILE OF ICICI

3.1 HISTORY OF ICICI

1955: The Industrial Credit and Investment Corporation of India Limited

(ICICI) was incorporated at the initiative of World Bank, the Government
of India and representatives of Indian industry, with the objective of
creating a development financial institution for providing medium-term
and long-term project financing to Indian businesses. Mr.A.Ramaswami
Mudaliar elected as the first Chairman of ICICI Limited. ICICI emerges as
the major source of foreign currency loans to Indian industry. Besides
funding from the World Bank and other multi-lateral agencies, ICICI was
also among the first Indian companies to raise funds from international
markets.
1956 : ICICI declared its first dividend of 3.5%.
1958 : Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.
1960 : ICICI building at 163, Backbay Reclamation, inaugurated.
1961 : The first West German loan of DM 5 million from Kredianstalt
obtained.
1967 : ICICI made its first debenture issue for Rs.6 crore, which was
oversubscribed.
1969 : The first two regional offices in Calcutta and Madras set up.
1972 : The second entity in India to set up merchant banking
services. : Mr. H. T. Parekh appointed the third Chairman of ICICI.
1977 : ICICI sponsored the formation of Housing Development Finance
Corporation. Managed its first equity public issue.
1978 : Mr. James Raj appointed the fourth Chairman of ICICI.
1979 : Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.
1982 : 1982 : ICICI became the first ever Indian borrower to raise
European Currency Units. : ICICI commences leasing business.
1984 : Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
1985 : Mr. N.Vaghul appointed the seventh Chairman and Managing
Director of ICICI.
1986 : ICICI became the first Indian institution to receive ADB Loans. :
ICICI, along with UTI, set up Credit Rating Information

24
Services of India Limited, India's first professional credit rating agency. : ICICI promotes
Shipping Credit and Investment Company of India Limited. : The Corporation made a
public issue of Swiss Franc 75 million in Switzerland, the first public issue by any Indian
entity in the Swiss Capital Market.
1987 : ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in India.

1988 : Promoted TDICI - India's first venture capital company.

1993 : ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan
set up. : ICICI Asset Management Company set up.

1994: ICICI established Banking Corporation as a banking subsidiary.formerly Industrial

Credit and Investment Corporation of India. Later, ICICI Banking Corporation was
renamed as 'ICICI Bank Limited'. ICICI founded a separate legal entity, ICICI Bank, to
undertake normal banking operations - taking deposits, credit cards, car loans etc.

1996 : ICICI Ltd became the first company in the Indian financial sector to raise GDR. :
SCICI merged with ICICI Ltd. : Mr. K.V.Kamath appointed the Managing Director and
CEO of ICICI Ltd

1997 : ICICI Ltd was the first intermediary to move away from single prime rate to three-
tier prime rates structure and introduced yield-curve based pricing. : The name The
Industrial Credit and Investment Corporation of India Ltd changed to ICICI Ltd. : ICICI
Ltd announced the takeover of ITC Classic Finance.

1998 : Introduced the new logo symbolizing a common corporate identity for the ICICI
Group. : ICICI announced takeover of Anagram Finance.

1999 : ICICI launched retail finance - car loans, house loans and loans for consumer
durables. : ICICI becomes the first Indian Company to list on the NYSE through an issue
of American Depositary Shares.

2000 : ICICI Bank became the first commercial bank from India to list its stock on NYSE.

2001: ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank,
and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established
1904) in the 1960s. In October 2001, the Boards of Directors of ICICI and ICICI Bank

25
 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.

2002 : The merger was approved by shareholders of ICICI and ICICI Bank in January
2002, by the High Court of Gujarat at Ahmadabad 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, have been integrated in a single entity. At the same time, ICICI started its
international expansion by opening representative offices in New York and London. In
India, ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered
Bank had inherited when it acquired Grindlays Bank.

2003 : The first Integrated Currency Management Centre launched in Pune. ; ICICI Bank
announced the setting up of its first ever offshore branch in Singapore. ; The first offshore
banking unit (OBU) at Seepz Special Economic Zone, Mumbai, launched. ; ICICI Bank’s
representative office inaugurated in Dubai. ; Representative office set up in China. :
ICICI Bank’s UK subsidiary launched. ; India’s first ever "Visa Mini Credit Card", a
43% smaller credit card in dimensions launched. ; ICICI Bank subsidiary set up in
Canada. ; Temasek Holdings acquired 5.2% stake in ICICI Bank. ; ICICI Bank became
the market leader in retail credit in India. In the UK it established an alliance with Lloyds
TSB. It also opened an Offshore Banking Unit (OBU) in Singapore and representative
offices in Dubai and Shanghai.

2004 : Max Money, a home loan product that offers the dual benefit of higher eligibility
and affordability to a customer, introduced. : Mobile banking service in India launched
in association with Reliance Infocomm. : India’s first multi-branded credit card with
HPCL and Airtel launched. : Kisan Loan Card and innovative, low-cost ATMs in rural
India launched. : ICICI Bank and CNBC TV 18 announced India’s first ever awards
recognizing the achievements of SMEs, a pioneering initiative to encourage the
contribution of Small and Medium Enterprises to the growth of Indian economy. : ICICI
Bank opened its 500th branch in India. : ICICI Bank introduced partnership model
wherein ICICI Bank would forge an alliance with existing micro finance institutions
(MFIs). The MFI would undertake the promotional role of

26
identifying, training and promoting the micro-finance clients and ICICI Bank would
finance the clients directly on the recommendation of the MFI. : ICICI Bank
introduced 8-8 Banking wherein all the branches of the Bank would remain open
from 8a.m. to 8 p.m. from Monday to Saturday. : ICICI Bank introduced the concept
of floating rate for home loans in India. At the same time, ICICI opened a
representative office in Bangladesh to tap the extensive trade between that country,
India and South Africa.

2005 : First rural branch and ATM launched in Uttar Pradesh at Delpandarwa,
Hardoi. ; "Free for Life" credit cards launched wherein annual fees of all ICICI Bank
Credit Cards were waived off. ; ICICI Bank and Visa jointly launched mChq – a
revolutionary credit card on the mobile phone. ; Private Banking Masters 2005, a
nationwide Golf tournament for high networth clients of the private banking division
launched. This event is the largest domestic invitation amateur golf event conducted
in India. ; First Indian company to make a simultaneous equity offering of
$1.8 billion in India, the United States and Japan. ; ICICI acquired Investitsionno-
Kreditny Bank (IKB), a Russia bank with about US$4mn in assets, head office in
Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI renamed the
bank ICICI Bank Eurasia. Also, ICICI established a branch in Dubai International
Financial Centre and in Hong Kong.ICICI Bank became the largest bank in India in
terms of its market capitalization. ; ICICI Bank became the first private entity in India
to offer a discount to retail investors for its follow-up offer.

2006 : ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt
in the international markets. : ICICI Bank subsidiary set up in Russia. ; Introduced a
new product - ‘NRI smart save Deposits’ – a unique fixed deposit scheme for
nonresident Indians. : Representative offices opened in Thailand, Indonesia and
Malaysia. ; ICICI Bank UK opened a branch in Antwerp, in Belgium ; ICICI Bank
became the largest retail player in the market to introduce a biometric enabled
smart card that allow banking transactions to be conducted on the field. A low-cost
solution, this became an effective delivery option for ICICI Bank’s micro finance
institution partners. ; Financial counseling centre Disha launched. Disha provides
free credit counseling, financial planning and debt management services. ; Bhoomi
puja conducted for a regional hub in Hyderabad, Andhra Pradesh.

27
2007 : ICICI Bank‘s USD 2 billion 3-tranche international bond offering was the largest
bond offering by an Indian bank. ; ICICI amalgamated Sangli Bank, which was
headquartered in Sangli, in Maharashtra State, and which had 158 branches in
Maharashtra and another 31 in Karnataka State. Sangli Bank had been founded in
1916 and was particularly strong in rural areas. With respect to the international
sphere, ICICI also received permission from the government of Qatar to open a
branch in Doha. Also, ICICI Bank Eurasia opened a second branch, this time in St.
Petersburg. ; ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both
domestic and international markets through a follow-on public offer. ; ICICI Bank’s
GBP 350 million international bond offering marked the inaugural deal in the sterling
market from an Indian issuer and also the largest deal in the sterling market from
Asia. ; Launched India’s first ever jewellery card in association with jewelry major
Gitanjali Group. ; ICICI Bank became the first bank in India to launch a premium credit
card -- The Visa Signature Credit Card. ; Foundation stone laid for a regional hub in
Gandhinagar, Gujarat. ; Introduced SME Toolkit, an online resource centre, to help
small and medium enterprises start, finance and grow their business. ; ICICI Bank
signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement in
Singapore.
; ICICI Bank became the first private bank in India to offer both floating and fixed rate
on car loans, commercial vehicles loans, construction equipment loans and
professional equipment loans. ; In a first of its kind, nation wide initiative to attract
bright graduate students to pursue a career in banking, ICICI Bank launched the
"Probationary Officer Programme". ;Launched Bank@home services for all savings
and current a/c customers residing in India ; ICICI Bank Eurasia LLC inaugurated its
first branch at St Petersburg, Russia.

2008 : ICICI Bank enters US The US Federal Reserve permitted ICICI to convert its
representative office in New York into a branch.; ICICI Bank enters Germany, opens
its first branch in Frankfurt ; ICICI Bank launched iMobile, a breakthrough innovation
in banking where practically all internet banking transactions can now be simply done
on mobile phones. ; ICICI Bank concluded India's largest ever securitization
transaction of a pool of retail loan assets aggregating to Rs. 48.96 billion (equivalent
of USD 1.21 billion) in a multi-tranche issue backed by four different asset categories.
It is also the largest deal in Asia (ex- Japan) in 2008 till date and the second largest
deal in Asia (ex- Japan & Australia) since the beginning of 2007. ; ICICI Bank
launches ICICIACTIVE - Banking Interactive Service - along with DISHTV, which will
allow viewers to see information about the Bank's products and services and contact
details on their DISHTV screens. ; ICICI Bank and British Airways launch co-branded
credit card, which is designed to earn accelerated reward points to the card holders
28
with every British Airways flight or by spending on everyday purchases.

2009: ICICI Bank Board appoints Mr K. V. Kamath as non- executive Chairman and
Ms Chanda Kochhar as Managing Director & CEO effective May 1, 2009, while the
existing non- executive Chairman Mr N Vaghul retires after completing his term on
April 30, 2009 ; ICICI bank ties up with BSNL Cell One for bill payments, it will
facilitate bill payment for BSNL Cell One users through www.icicibank.com across
all the 27 circles of BSNL. ; ICICI Bank Limited acting through its Hong Kong
Branch (ICICI Bank) signed an agreement on Export Credit Line totaling up to
US$100 million with the Japan Bank for International Cooperation (JBIC) which
constitutes the international wing of Japan Finance Corporation. ; ICICI Bank
Limited acting through its Hong Kong Branch (ICICI Bank) signed a loan agreement
with the Export-Import Bank of China (China Exim) for USD 98 million under the
Two- step Buyer Credit (Export Credit) arrangement. ICICI Bank is the first Indian
Bank to have entered into this arrangement with China Exim ; ICICI Bank with
Singapore Airlines launched “ICICI Bank Singapore Airlines Visa Platinum Credit
Card”, the Card has exclusive privileges especially designed for the members. ;
ICICI Bank announced an association with mChek, India’s leading mobile payment
solutions provider, to facilitate mChek services to all ICICI Bank Debit and Credit
Card customers. These are electronic cards issued to the customers with mChek
application on their mobile phone. ; MsChanda Kochhar took charge as the
Managing Director & CEO of ICICI Bank from May 1, 2009.

29
3.2 Board of Directors

Board Members

Mr. K. V. Kamath, Chairman

....................................................
Mr. Sridar Iyengar
....................................................
Mr. Homi R. Khusrokhan
....................................................
Mr. Lakshmi N. Mittal
................................................
Mr. Narendra Murkumbi
.................................................
Dr. Anup K. Pujari
.................................................
Mr. Anupam Puri
..................................................
Mr. M.S. Ramachandran
..................................................
Mr. M.K. Sharma
..................................................
Mr. V. Sridar
Prof. Marti G. Subrahmanyam
.........................................................
Mr. V. Prem Watsa
.........................................................
Ms. Chanda D. Kochhar,
Managing Director & CEO
.........................................................
Mr. Sandeep Bakhshi,
Deputy Managing Director
.........................................................
Mr. N. S. Kannan,
Executive Director & CFO
.........................................................
Mr. K. Ramkumar,
Mr. Sonjoy Chatterjee,
Executive Director

30
3.3 BUSINESS OBJECTIVE

 Vision

To be the leading provider of financial services in India and a major

global bank.

 Mission

• We will leverage our people, technology, speed

and financial capital to: be the banker of first
choice for our customers by delivering high quality,
world-class service.
• Expand the frontiers of our business globally.
• Play a proactive role in the full realisation of India’s potential.
• Maintain a healthy financial profile and diversify our
earnings across businesses and geographies.
• Maintain high standards of governance and ethics.
• Contribute positively to the various countries and markets in
which we operate.
• Create value for our stakeholders.

31
3.4 PRODUCTS AND SERVICES
PERSONAL BANKING
Loan Product Deposit Product Investment &
Insurance

• Auto loan • Savings A/C • Mutual Funds

• Loan against • Current A/C • Bonds
security • Fixed Deposits • Knowledge Centre
• Loan against • Demat A/C • Insurance
property • Safe • General And
• Personal loan Deposit Health Insurance
• Credit card Lockers • Equity
• 2- wheeler loan And
• Commercial vehicles Derivativ
finance es
• Home loans • Mudra Gold Bar
• Retail business
banking
• Tractor loan
• Working capital
finance
• Construction
• Equipment finance
• Health care finance
• Education loan
• Gold loan

Cards Payment Services Access To Bank

• Credit Card • Net Safe • Net Banking
• Debit Card • Merchant • One View
• Prepaid Card • Prepaid Refill • InstaAlert
• Bill Pay Mobile Banking
-------------------------------- • Visa Bill Pay • ATM
Forex services • InstaPay • Phone Banking

32
 -------------------------------- • Direct Pay • Email Statements
• Product And Services • VisaMone • Branch Network
• Trade Services y
• Forex Service Branch Transfers
Locater • E-Monies
• RBI Guidelines Electronic Funds
Transfer
• Online Payment
Of Direct Tax

33
3.5 WHOLESALE BANKING

Corporate Small and Medium Financial Institutions and

Enterprises Trusts

q
•
Funded Services •
Funded Services BANKS
• Non Funded • Non Funded
Services Services •Clearing Sub-
• Value Added • Specialized Services Membership
Services • Value Added • RTGS Sub-Membership
• Internet Banking Services • Fund Transfer
• Internet Banking • ATM Tie- Ups
• Corporate Salary A/C
• Tax Collection

Financial

Institutions

Mutual Funds

Stock Brockers

Insurance

Companies

Commodities

Business

Trusts

34
 CHAPTER 4

DATA ANALYSIS DATA

INTERPRETATION

35
RESULTS AND DISCUSSIONS
4.6 Financial Performance Analysis

Comparative Balance Sheet

TABLE NO. 1

Consolidated Balance Sheet ------------------- in Rs. Cr. -------------------

Years March 2019 March 2018 March March 2016 March 2015
2017
Capital and Liabilities:
Equity Share Capital 1,289.46 1,285.81 1,165.11 1,163.17 1,159.66
Employee
Stock Option 4.68 5.57 6.26 6.7 7.44

Reserves 1,09,889.27 1,06,310.68 1,00,395.52 90,123.37 83,537.44

Net Worth 1,11,183.41 1,07,602.06 1,01,566.89 91,293.24 84,704.54
Deposits 6,81,316.94 5,85,796.11 5,12,587.26 4,51,077.39 3,85,955.25

Borrowings 2,10,324.12 2,29,401.83 1,88,286.76 2,20,377.66 2,11,252.00

Total Debt 8,91,641.06 8,15,197.94 7,00,874.02 6,71,455.05 5,97,207.25
Minority Interest 6,580.54 6,008.19 4,865.31 3,355.64 2,505.81
Policy Holders Funds 1,52,378.75 0 0 0 0
Other Liabilities
& Provisions 73,940.14 1,92,445.22 1,75,353.32 1,49,834.79 1,41,661.56

Total Liabilities 12,35,723.9 11,21,253.4 9,82,659.54 9,15,938.72 8,26,079.16

0 1
Asset
s
Cash & Balances
with RBI 38,066.28 33,272.60 31,891.26 27,277.56 25,837.67

Balance with
Banks, Money at 49,324.62 55,726.53 48,599.61 37,758.41 21,799.50
Call
Advances 6,46,961.68 5,66,854.22 5,15,317.31 4,93,729.11 4,38,490.10

Investments 3,98,200.76 3,72,207.68 3,04,373.29 2,86,044.09 3,02,761.63

Gross Block 9,660.42 9,465.01 9,337.96 8,713.46 5,871.21

Revaluation 3,070.00 3,027.64 3,065.11 2,817.47 0
Reserves
Net Block 6,590.42 6,437.37 6,272.85 5,895.99 5,871.21

Other Assets 96,580.14 86,755.00 76,205.22 65,233.57 31,319.07

12,35,723.90 11,21,253.40 9,82,659.54 9,15,938.73 8,26,079.18

Total Assets

Contingent Liabilities 26,61,651.1 14,52,896.9 8,68,410.51 11,82,880.5 10,35,330.0

2 4 8 5
Book Value (Rs) 172.47 167.39 174.37 157.47 146.68

36
 Provisions & 20,074.60 17,964.1 16,685.6 14,137.2 8,544.56
Contingencies 1 6 5
Total Expenses 94,211.20 66,793.2 63,773.0 70,004.0 50,552.7
2 4 1 2
Net Profit for the Year -16,297.84 5,592.30 9,887.72 - 10,714.5
1,941.53 6
Profit brought forward 18,495.26 18,744.9 17,132.1 17,261.4 13,318.5
4 9 2 9
Total 2,197.42 24,337.2 27,019.9 15,319.8 24,033.1
4 1 9 5
Equity Dividend 965.13 1,457.46 0.95 2,907.52 2,898.81
Corporate Dividend Tax 0 8.73 -7.19 279.37 271.15
Per-share data (annualized)
Earnings Per Share (Rs) - 8.7 16.98 -3.34 18.48
25.28
Equity Dividend (%) 50 75 125 250 250
Book Value (Rs) 163.38 158.91 166.37 149.47 138.72
Appropriation
s
Transfer to
Statutory Reserves 3,013.86 5,560.91 8,194.58 6,668.62 4,062.57
Transfer to Other Reserves 0 0.01 0 0.01 0
Proposed
Dividend/Transfer to 965.13 1,466.19 -6.24 3,186.89 3,169.96
Govt.
Balance c/f to Balance 17,879.57 18,495.2 18,744.9 17,132.1 17,261.4
Sheet 6 4 9 2
Total 21,858.56 25,522.3 26,933.2 26,987.7 24,493.9
7 8 1 5

37
 Consolidated Balance Sheet ------------------- in Rs. Cr. -------------------
Year March 2019 March 2018 March March 2016 March 2015
s 2017
Capital and Liabilities:
Equity Share Capital 1,289.46 1,285.81 1,165.11 1,163.17 1,159.66
Employee
Stock Option 4.68 5.57 6.26 6.7 7.44
Reserves 1,09,889.27 1,06,310.68 1,00,395.52 90,123.37 83,537.44
Net Worth 1,11,183.41 1,07,602.06 1,01,566.89 91,293.24 84,704.54
Deposits 6,81,316.94 5,85,796.11 5,12,587.26 4,51,077.39 3,85,955.25
Borrowings 2,10,324.12 2,29,401.83 1,88,286.76 2,20,377.66 2,11,252.00
Total Debt 8,91,641.06 8,15,197.94 7,00,874.02 6,71,455.05 5,97,207.25
Minority Interest 6,580.54 6,008.19 4,865.31 3,355.64 2,505.81
Policy Holders Funds 1,52,378.75 0 0 0 0
Other Liabilities
& Provisions 73,940.14 1,92,445.22 1,75,353.32 1,49,834.79 1,41,661.56
Total Liabilities 12,35,723.9 11,21,253.4 9,82,659.54 9,15,938.72 8,26,079.16
0 1
Asset
s
Cash & Balances
with RBI 38,066.28 33,272.60 31,891.26 27,277.56 25,837.67
Balance with
Banks, Money at 49,324.62 55,726.53 48,599.61 37,758.41 21,799.50
Call
Advances 6,46,961.68 5,66,854.22 5,15,317.31 4,93,729.11 4,38,490.10
Investments 3,98,200.76 3,72,207.68 3,04,373.29 2,86,044.09 3,02,761.63
Gross Block 9,660.42 9,465.01 9,337.96 8,713.46 5,871.21
Revaluation 3,070.00 3,027.64 3,065.11 2,817.47 0
Reserves
Net Block 6,590.42 6,437.37 6,272.85 5,895.99 5,871.21
Other Assets 96,580.14 86,755.00 76,205.22 65,233.57 31,319.07

Total Assets 12,35,723.90 11,21,253.40 9,82,659.54 9,15,938.73 8,26,079.18

Contingent Liabilities 26,61,651.1 14,52,896.9 8,68,410.51 11,82,880.5 10,35,330.0
2 4 8 5
Book Value (Rs) 172.47 167.39 174.37 157.47 146.68

38
4.2 FINANCIAL STATEMENT ANALYSIS
Comparative Balance Sheet of ICICI Bank from 2015-2016 to 2018-2019
Table 2

(Rs. In Crores)
Particulars 2015-2016 2016-2017 2017-2018 2018-2019
% of % of % of % of
Absolut Absolut Absolut Absolut
Absolut Absolut Absolut Absolut
e e e e
e e e e
Chang Chang Chang Chang
Change Change Change Change
e e e e
Capital
and
Liabilities
Total
Share 3.51 0.3027 1.94 0.1668 120.70 10.36 3.65 0.2839
Capital
Equity
Share 3.51 0.3027 1.94 0.1668 120.70 10.36 3.65 0.2839
Capital
Employee
Stock -0.74 -9.946 -0.44 - -0.69 -11.02 -0.89 -15.98
Option 6.5672
Reserves 6,585.93 7.8838 10,272.15 11.398 5,915.16 5.892 3,578.59 3.3662
Net Worth 6,588.70 7.7784 10,273.65 11.253 6,035.17 5.942 3,581.35 3.3283
Deposits 65,122.14 16.873 61,509.87 13.636 73,208.85 14.28 95,520.83 16.306
Borrowings 9,125.66 4.3198 - - 41,115.07 21.84 -19,077.71 -8.316
32,090.90 14.562
Total Debt 74,247.80 12.433 29,418.97 4.3814 1,14,323.92 16.31 76,443.12 9.3772
Minority
Interest 849.83 33.914 1,509.67 44.989 1,142.88 23.49 572.35 9.5262
Policy
Holder
s 0.00 0.00 0.00 0.00 0.00 0.00 1,52,378.75 0.00
Funds
Other
Liabilities &
Provisions 8,173.23 5.7695 25,518.53 17.031 17,091.90 9.747 - -61.58
1,18,505.08
Total
Capital and
Liabilities 89,859.56 10.878 66,720.82 7.2844 1,38,593.87 14.1 1,14,470.49 10.209
ASSETS
Cash &
Balance
s 1,439.89 5.5728 4,613.70 16.914 1,381.34 4.331 4,793.68 14.407
with RBI
Balance
with Banks,
Money at
Call 15,958.91 73.208 10,841.20 28.712 7,126.92 14.66 -6,401.91 -11.49
Advances 55,239.01 12.598 21,588.20 4.3725 51,536.91 10 80,107.46 14.132
Investments - -5.522 18,329.20 6.4078 67,834.39 22.29 25,993.08 6.9835
16,717.54

Gross Block 2,842.25 48.41 624.50 7.1671 127.05 1.361 195.41 2.0646

Revaluatio
n Reserves 2,817.47 0 247.64 8.7894 -37.47 -1.222 42.36 1.3991

39
 Net Block 24.78 0.4221 376.86 6.3918 164.52 2.623 153.05 2.3775

Other Assets 33,914.50 108.29 10,971.65 16.819 10,549.78 13.84 9,825.14 11.325

Total Assets 89,859.55 10.878 66,720.81 7.2844 1,38,593.86 14.1 1,14,470.50 10.209

Interpretation
1. The company's total capital for 2015-16 was 10.878%, and for the year 2016-17, it
reduced to 7.2844%. But in the year 2017-18 it increased to 14.1% and in the current
year 2018-19 it again declined to 10.209%, this shows that the company has a good
amount of capital and the liabilities of the company are also stabilized.
2. The company's total assets for the year 2015-16 were 10.878%, i.e., 89859.56,
and for the year 2016-17, it reduced to 7.2844%, i.e., 66720.82. But in the year 2017-
18, it increased to 14.1%, i.e., 138593.87, and in the current year 2018-19, it again
reduced to 10.209%, i.e., 114470.49, this shows that the company has maintained its
assets as well as its liabilities.
Table 3

Particulars 2015-2016 2016-2017 2017-2018 2018-2019

% of % of % of % of
Absolut Absolut Absolut Absolut
Absolut Absolut Absolut Absolut
e e e e
e e e e
Change Change Change Change
Change Change Change Change
Income
Interest Earned 3,648.29 7.4317 1,416.85 2.6865 809.61 1.495 8,435.30 15.346
Other Income 3,146.92 25.845 4,181.43 27.288 -2,084.85 -10.689 -2,907.47 -16.69
Total Income 6,795.21 11.091 5,598.28 8.2252 -1,275.24 -1.7312 5,527.83 7.6367
Expenditure
Interest
expende 1,463.86 4.8712 903.57 2.8671 -478.91 -1.4773 4,446.35 13.921
d
Employee Cost -1,737.19 -36.57 2,721.02 90.319 180.24 3.1435 894.29 15.122
Selling,
Admin & Misc.
Expenses 19,685.06 130.43 -9,914.70 -28.51 3,295.76 13.256 22,081.17 78.417
Depreciation 39.56 6.0035 59.14 8.4666 23.09 3.0476 -3.83 -0.491
Operatin
g 12,394.74 103.66 -9,682.95 -39.76 2,220.64 15.139 20,861.14 123.52
Expense
s
Provisions &
Contingenci 5,592.69 65.453 2,548.41 18.026 1,278.45 7.662 2,110.49 11.748
es
Total Expenses 19,451.29 38.477 -6,230.97 -8.901 3,020.18 4.7358 27,417.98 41.049
Net Profit
for the Year -12,656.09 -118.1 11,829.25 -609.3 -4,295.42 -43.442 -21,890.14 -391.4
Profit
brought 3,942.83 29.604 -129.23 -0.749 1,612.75 9.4136 -249.68 -1.332
forward
Total -8,713.26 -36.26 11,700.02 76.371 -2,682.67 -9.9285 -22,139.82 -90.97
The Above table is the Comparative Profit and loss account of ICICI Bank From 2015-2016
To 2018-2019, and its interpretation is made below.

40
 Interpretation
1. The company's total income for 2015-16 was 11.091%, i.e., 6795.21, and 2016-17
was 8.2252%, i.e., 5598.28. In the year 2017-18, it reduced to 1.7312%, i.e., 1275.24,
and the following year, 2018-19, it comes up to 7.6367%, i.e., 5527.83 means that the
income was increasing for the company in the year 2018-19.
2. The company's total expenses for the year 2015-16 were 38.477%, i.e., 19451.29,
but in 2016-17, the expenses of the company were reduced to -8.901%, i.e., -6230.97.
For the year 2017-18, the company's expenses again came up to 4.7358%, i.e.,
3020.18, and in the year

2018-19, the expenses came up also to 41.049%, i.e., 27417.98, which means the
expenses of the company were increasing. This shows that the company is not
working correctly.

4.3 Ratio Analysis

1. Current Ratios
Years Current
Ratios
2015 0.06
2016 0.13
2017 0.12
2018 0.12
2019 0.12

CURRENT RATIO
0.14
0.12
0.1
0.08
0.06 Current Ratio
0.04
0.02

2015 2016 2017 2018 2019

Figure 1

2. Quick Ratios
Years Quick
Ratios
2015 13.81
2016 14.97
2017 16.31
2018 20.44
2019 18.66

41
 Quick Ratio
25

20

15

10 Quick Ratio

2015 2016 2017 2018 2019

Figure 2

42
3. Debt to Equity Ratio
Years Debt to Equity
Ratio
2015 6.95
2016 0.87
2017 0.82
2018 0.90
2019 0.86

Debt to Equity Ratio

debt to quity ratio

2015 2016 2017 2018 2019

Figure 3

4. Total Assets to Debt Ratio

Year Total Assets to Debt
s Ratio
2015 1.38
2016 1.36
2017 1.40
2018 1.37
2019 1.38

43
 Total asset to debt ratio
1.41
1.4
1.39
1.38
1.37 total asset to debt ratio
1.36
1.35
1.34
2015 2016 2017 2018 2019

Figure 4

5 Proprietary Ratios
Years Proprietary
Ratio
2015 9.75
2016 10.03
2017 9.67
2018 10.42
2019 11.11

Proprietary Ratio
11.5

11

10.5

10
proprietary ratio
9.5

8.5
2015 2016 2017 2018 2019

Figure 5

Interpretation
1. The company's quick ratio for the year 2018-19 is 18.66 are the current ratio of the

44
 company is 0.12. This shows that the company is liable to pay its debts, and there is
immediate liquidity in the company.
2. The company's debt-to-equity ratio for the year 2018-19 is 0.866419013, which
shows that the company has a good grip on its equity and the debts are also under
control.
3. The company's total asset to debt ratio for the year 2018-19 is1.385898379, which
shows that the company has an enormous investment value and the debt is under its
control.
4. The company's proprietary ratio for 2018-19 is 11.11428315, which shows that its
financial strength is good.

4.4 Common Size Balance Sheet of ICICI Bank from 2015-2016 to

2018-2019
Total 4

(Rs. In Crores)
Particulars 2015-2016 2016-2017 2017-2018 2018-2019
% of % of % of % of
Absolute Absolute Absolute Absolute
Change Absolute Change Absolute Change Absolute Change Absolute
Change Change Change Change
Capital and
Liabilities
Total Share
Capital 3.51 0.3027 1.94 0.1668 120.70 10.36 3.65 0.2839
Equity Share
Capital 3.51 0.3027 1.94 0.1668 120.70 10.36 3.65 0.2839

Employee
Stock Option -0.74 -9.946 -0.44 -6.5672 -0.69 -11.02 -0.89 -15.98
Reserves 6,585.93 7.8838 10,272.15 11.398 5,915.16 5.892 3,578.59 3.3662
Net Worth 6,588.70 7.7784 10,273.65 11.253 6,035.17 5.942 3,581.35 3.3283
Deposits 65,122.14 16.873 61,509.87 13.636 73,208.85 14.28 95,520.83 16.306
-
Borrowings
9,125.66 4.3198 32,090.90 -14.562 41,115.07 21.84 -19,077.71 -8.316
Total Debt 74,247.80 12.433 29,418.97 4.3814 1,14,323.92 16.31 76,443.12 9.3772
Minority
Interest 849.83 33.914 1,509.67 44.989 1,142.88 23.49 572.35 9.5262
Policy Holders
Funds 0.00 0.00 0.00 0.00 0.00 0.00 1,52,378.75 0.00
Other
Liabilities & -
Provisions 8,173.23 5.7695 25,518.53 17.031 17,091.90 9.747 1,18,505.08 -61.58

45
 Total Capital
and Liabilities 89,859.56 10.878 66,720.82 7.2844 1,38,593.87 14.1 1,14,470.49 10.209
ASSETS
Cash &
Balances with
RBI 1,439.89 5.5728 4,613.70 16.914 1,381.34 4.331 4,793.68 14.407
Balance with
Banks, Money
at Call 15,958.91 73.208 10,841.20 28.712 7,126.92 14.66 -6,401.91 -11.49
Advances 55,239.01 12.598 21,588.20 4.3725 51,536.91 10 80,107.46 14.132
-
Investments
16,717.54 -5.522 18,329.20 6.4078 67,834.39 22.29 25,993.08 6.9835
Gross Block 2,842.25 48.41 624.50 7.1671 127.05 1.361 195.41 2.0646
Revaluation
Reserves 2,817.47 0 247.64 8.7894 -37.47 -1.222 42.36 1.3991
Net Block 24.78 0.4221 376.86 6.3918 164.52 2.623 153.05 2.3775
Other Assets 33,914.50 108.29 10,971.65 16.819 10,549.78 13.84 9,825.14 11.325
Total Assets 89,859.55 10.878 66,720.81 7.2844 1,38,593.86 14.1 1,14,470.50 10.209

Interpretation

1. The company's total capital for 2015-16 was 10.87%, i.e., 89859.56, and for the
year 2016- 17, it reduced to 7.28%, i.e., 66720.82. But in the year 2017-18, it
increased to 14.1%, i.e., 138593.87.
2. In the current year 2018-19, it again reduced to 10.209%, i.e., 114470.49. This
shows that the company has a good amount of capital, and the company's liabilities
are being stabilized.
The Total Assets of the company for 2015-16 were 10.878%, i.e., 89859.56, and for the year 2016-
17, it reduced to 7.2844%, i.e., 66720.82. But in the year 2017-18, it increased to 14.1%, i.e.,
138593.87, and in the current year 2018-19, it again reduced to 10.209%, i.e., 114470.49, this
shows that the company has maintained its assets as well as its liabilities

46
 4.5 Common Size Statement of Profit & Loss A/c of ICICI Bank
from 2015-2016 to 2018-2019
Table 5

------------------- in Rs. Cr. ------------------ Percentage of Revenue from

Particulars - Operation (%)
ABSOLUTE AMOUNTS (Rs.)
Mar- Mar- Mar- Mar- Mar-
Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
19 18 17 16 15
Income
Interes
t 63,401.19 54,965.8 54,156.2 52,739.4 49,091.1 100.00 100.00 100.0 100.0 100.0
Earne 9 8 3 4 0 0 0
d
Other Income 14,512.16 17,419.6 19,504.4 15,323.0 12,176.1 22.89 31.69 36.02 29.05 24.80
3 8 5 3
Total Income 77,913.35 72385.52 73660.76 68062.48 61267.27 122.89 131.69 136.0 129.0 124.8
2 5 0
Expenditure
Interest
expende 36,386.40 31,940.0 32,418.9 31,515.3 30,051.5 57.39 58.11 59.86 59.76 61.22
d 5 6 9 3
Employe
e Cost 6,808.24 5,913.95 5,733.71 3,012.69 4,749.88 10.74 10.76 10.59 5.71 9.68
Selling,
Admin &
Misc.
Expenses 50,239.65 28,158.4 24,862.7 34,777.4 15,092.3 79.24 51.23 45.91 65.94 30.74
8 2 2 6
Depreciation 776.91 780.74 757.65 698.51 658.95 1.23 1.42 1.40 1.32 1.34
Operatin
g 37,750.20 16,889.0 14,668.4 24,351.3 11,956.6 59.54 30.73 27.09 46.17 24.36
Expense 6 2 7 3
s
Provisions &
Contingenci 20,074.60 17,964.1 16,685.6 14,137.2 8,544.56 31.66 32.68 30.81 26.81 17.41
es 1 6 5
Total
Expens 94,211.20 66,793.2 63,773.0 70,004.0 50,552.7 148.60 121.52 117.7 132.7 102.9
es 2 4 1 2 6 4 8
Net Profit -
for the Year 16,297.8 5,592.30 9,887.72 - 10,714.5 -25.71 10.17 18.26 -3.68 21.83
4 1,941.53 6
Profit
brought 18,495.26 18,744.9 17,132.1 17,261.4 13,318.5 29.17 34.10 31.63 32.73 27.13
forward 4 9 2 9
Total 2,197.42 24,337.2 27,019.9 15,319.8 24,033.1 3.47 44.28 49.89 29.05 48.96
4 1 9 5
Equity
Dividen 965.13 1,457.46 0.95 2,907.52 2,898.81 1.52 2.65 0.00 5.51 5.90
d
Corporate
Dividend 0 8.73 -7.19 279.37 271.15 0.00 0.02 -0.01 0.53 0.55
Tax

47
 Interpretation

1. The company's total income for the year 2015 was 124.80,
i.e.,61267.27, and for the year 2016 was 129.05%, i.e., 61267.27, and for
2017 was 136.02%, i.e.,, 73660.76. In the year 2018, it is reduced to
131.69%, i.e., 72385.52, and the following year 2019it comes up to
122.89%, i.e., 77912.35, which means that the income was increasing for
the company.
2. The company's total expenses for the year 2015 were 24033.15, i.e.,
3.47, and 2016 were 44.28%, i.e., 15319.89 but in the year 2017, the
costs of the company reduced to 49.89%, i.e., 27019.91. And for the year
2018, the company's expenses again came up to 24337.24%, i.e.,
29.05and in the year 2019, the costs came up to 49.96%, i.e.,
2197.42which means the prices of the company were increasing. This
shows that the company is not working correctly.

48
 CHAPTER 5
CONCLUSION, FINDINGS AND
SUGGESTION

49
 FINDINGS
• The Total Assets of ICICI Bank have increased from 2015-2019
• .
• The current assets have increased during the period 20015-2019.

• The current liabilities also have increased during the period 2015-2019.
• Profit after tax for the year ended March 31 2019 (FY2019) was
Rs.3400 Cr., compared to Rs.6800 Cr. for the year ended March 31
2018 (FY2018
• .
• Net Interest Income increased from Rs. 40,400 Cr. in FY2018 to
Rs. 41500 Cr. in FY 2019. It Increases due to improvement in net
interest margin.
• Operating Expenses increased to Rs. 18100 Cr. in FY 2019 from
Rs. 15700 Cr. in FY 2018. Asset Turnover Ratio remained constant
at 0.6 from FY 2015-2017.
• The deposits trend was 117 in the FY 2015- 16, but it has been
constant in FY 2016- 2017 and FY 2017-18.
• Advances have drastically fallen to 104 in FY 2016-2017 from 113 in FY
2015-2016.
• The earnings per share have decreased from 18.48in FY 2015 to -
3.34 (negative) in FY 2016.
• However, it has increased to 16.98 IN FY 2017 and has again
decreased to 8.7 in FY 2018.
• The debt-to-equity ratio remained highest in FY 2014-2015 and
has decreased since 2015-2016. It has almost remained constant
from FY 2015-2016 to FY 2018-2019.
• The total asset to debt ratio was highest in FY 2016-2017

50
 SUGGESTIONS
• The bank's profit in the duration of the course is unsatisfactory.
Yields are increasing but not at the same pace as costs due to
the high reliance on credit in borrowing and borrowing capital.
• To improve profitability, the bank should reduce its dependence on
foreign stocks to meet financial needs. As a result, interest costs
will decrease, and profits will increase due to the bank. Similarly,
non-productive costs should be reduced to maximize profits.
• Though the bank has successfully increased its deposits through
new and attractive schemes, it should provide loans to needy
persons with lower interest rates and a shorter maturity period for
FD's.
• To achieve rural development's objective, it should open many
branches in different rural areas of the country. It will facilitate in
providing help to poor rural farmers and other living below the
poverty line.
• Training programs should be devised for all staff, including call
center and Staff of Direct Sales Associates or Associates of these
banks. More importance should be given to upgrading product
knowledge.
• Banks should try to finance more and more projects. Financing will
help it to earn a higher number of profits.
• It should improve its day-to-day services to its customers. Such
assistance can be enhanced by providing prompt services and
demonstrating a cooperative attitude towards their customers. It
will help to give a sense of community confidence and build a
better public image.
• To increase the profit of the bank, the bank should decrease its
operating expenses.
• To increase its liquidity bank should keep some more cash in its
hands instead of giving more and more advances.
• The bank should manage all risks such as credit, market &
Operational risk correctly and be managed by a highly skilled and
qualified person.
• The bank should adopt customer-oriented service delivery

51
 CONCLUSIONS

ICICI Bank, a prominent player in India's banking sector, has undergone a rigorous
financial analysis to assess its overall health, performance, and strategies. This
analysis unveils a journey of satisfactory growth and a pioneering role in India's
digital banking transformation.

Revenue Growth and Profitability:

One of the key indicators of ICICI Bank's financial health is its revenue growth. The
analysis reveals a positive trend with an increase in revenue over the assessed
period. This growth is a testament to the bank's ability to attract customers,
generate income, and expand its operations. Furthermore, ICICI Bank has
maintained a profitable stance, showcasing a consistent performance in managing
its costs and optimizing its operations to ensure a low-cost profit situation. This
cost-efficiency is crucial for the long-term sustainability of the bank.

Branch and ATM Network Expansion:

ICICI Bank has not rested on its laurels but has actively expanded its branch and
ATM network across India. This expansion is a strategic move to reach more
customers and offer banking services to a broader audience. The numbers are
compelling, with a notable increase in both branches and ATMs. The bank's branch
network grew from 4,050 branches as of March 31, 2015, to 5,275 branches as of
June 30, 2019. Simultaneously, the ATM network increased from 12,091 ATMs to
15,589 ATMs during the same period. This expansion reflects the bank's
commitment to extending its reach and making banking services more accessible
to the public.

Strong Capital Growth:

The growth in ICICI Bank's balance sheet is a crucial aspect of its financial
analysis. Over the past five years, the bank has managed to significantly increase
its capital, signifying the trust of shareholders and investors. This capital growth is
essential for a bank's financial stability and its capacity to support lending activities
and meet regulatory requirements. In this regard, ICICI Bank's strategy has been
successful in attracting and retaining shareholders' confidence.

52
Deposits as a Primary Goal:
The heart of a bank's operations lies in its ability to attract and retain deposits.
ICICI Bank has excelled in this area, showcasing a remarkable increase in deposits
over the assessed period. This indicates that the bank has been successful in
gaining the trust of depositors, which is fundamental for its lending activities and
financial stability. Both fixed and current deposits have displayed an upward
trajectory, underscoring the bank's consistent efforts to secure its deposit base.

Equity Shareholders' Gains:

Equity shareholders have reason to be satisfied with their investments in ICICI
Bank. The bank's financial analysis reveals a growing trend in profits attributable to
equity shareholders, reflecting a healthy return on their capital. This growth is
indicative of the bank's commitment to enhancing shareholder value and
maintaining a robust financial position.

Stable Solvency Status:

While the analysis highlights a substantial growth in various aspects of the bank's
financials, it's equally important to maintain a stable solvency status. ICICI Bank
has succeeded in this regard, even as it expanded and grew its operations. This
stability is a reassuring sign for stakeholders and reflects prudent risk management
and capital allocation.

Capital Structure and External Equity:

An examination of the bank's capital structure indicates that ICICI Bank has been
inclined towards external equity, primarily in the form of loans and borrowings, as
opposed to relying predominantly on owner's equity. This strategy has enabled the
bank to leverage external sources of funds effectively and invest in growth
opportunities. While the ratio of foreign and domestic shares is not the central
focus, it's evident that the bank has harnessed external equity to propel its
expansion and enhance its offerings.

Investment Income:
As the bank expanded its operations, its investments have also grown. This is
reflected in the investment income generated by the bank, which has become a
significant source of revenue. The bank's ability to effectively manage its
investments and harness income from this growth is a noteworthy achievement.
53
Digital Transformation:
ICICI Bank has been a pioneer in India's digital banking transformation. The bank's
commitment to making banking more accessible, convenient, and time-efficient for
its customers aligns with its "Khayaal Aapka" philosophy. The adoption of digital
solutions is not only a strategic move but also a response to the evolving needs
and expectations of customers in the digital age. These solutions have empowered
citizens digitally, reflecting the bank's dedication to embracing technological
advancements and enhancing customer experiences.

In conclusion, ICICI Bank's financial analysis provides insights into its satisfactory
growth and successful strategies. The bank's revenue growth, profitability,
extensive network expansion, capital growth, and strong deposit base are
commendable. Equity shareholders have reaped rewards, and the bank's stable
solvency status underscores its prudent financial management. The strategic use
of external equity, investment income, and pioneering efforts in digital banking
transformation further contribute to ICICI Bank's overall financial health and its role
in shaping the future of banking in India. As the banking landscape continues to
evolve, ICICI Bank stands as a resilient and innovative financial institution.

54
 REFERENCE

https://www.wikipedia.org/

https://cleartax.in/s/insurance

https://www.icicibank.com/

https://www.iciciprulife.com/

https://www.icicilombard.com/

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