SGPC’s

Guru Nanak Institute of Management Studies

(Management Institute of G N Khalsa College), Matunga east, Mumbai – 400 019

General Project Report

Titled
“A Study of Financial Analysis Of ICICI Bank”
In the partial fulfillment of the Degree of
MMS
By
Mr. Abhishek Dilip Rajak
[Class-MMS, Division-B & Roll No-109]
Semester IV & Specialization: Finance
Batch: 2022-24

Under the Guidance of

Prof. Sonali Athawale
(Project Guide)
 SGPC’s
Guru Nanak Institute of Management Studies
(Management Institute of G N Khalsa College), Matunga east, Mumbai – 400 019

CERTIFICATE

This is to certify that Mr. Abhishek Dilip Rajak a student of Class: MMS
Semester: IV bearing Roll No. 109 has successfully completed the project titled,
“A Study of Financial Analysis Of ICICI Bank”, in the partial fulfillment of the
Degree of MMS.

Place: Matunga, Mumbai

Date:

Name of the Project Guide: Prof. Sonali Athawale

Signature of the Project Guide:

Signature Institutes Seal:

(Dr. Satvinder Singh Bedi)

Director

STUDENT DECLARATION
I hereby declare that the project titled “A Study of Financial Analysis Of ICICI
Bank” is my own work conducted under the supervision of Prof. Sonali
Athawale.

I further declare that no part in this project work has been plagiarized without
proper citations and has not formed the basis for the award of any degree,
diploma, associate ship, fellowship previously.

Name of Student:

Signature of the Student:

 ACKNOWLEDGEMENT

I avail this opportunity to express my sincere, humble and deepest sense of

gratitude towards my Guide Prof. Sonali Athawale for his valuable guidance and

tremendous efforts which she has taken to guide me to the path of success. Her

constructive feedback and endless encouragement always inspired to work hard

on the topic. Her determination and ambition to achieve goal in life is really

fascinating and inspired me. I wish to thank my friends for their suggestion and

co-operation in completion of this project. No one can successfully complete

work without blessings and wishes, so we thank and dedicate it to our loving

parents for their love and inspiration. Above all by grace of god we would

achieve it successfully.

Name of student
 TABLE OF CONTENTS

Sr
Title Page No.
No.

1 Executive Summary

2 Company Overview

3 Literature Review

4 Research Methodology

5 Data Analysis and Interpretation

6 Findings

7 Conclusion

8 Bibliography

9 Project Progress Report Duly Filled & Signed

10 Approved Project Synopsis

Executive Summary
1.1 Executive Summary:
This study presents a comprehensive analysis of the financial performance of ICICI Bank,
one of India's leading private sector banks. The objective of this analysis is to provide
insights into the bank's financial health, growth prospects, and potential risks.

The study begins with an introduction to ICICI Bank and the importance of financial analysis
in evaluating banking institutions. A review of relevant literature highlights key
methodologies and metrics commonly used in financial analysis, setting the stage for the
analysis of ICICI Bank's financial performance.

Methodologically, this study employs a range of financial ratios and metrics to assess various
aspects of ICICI Bank's operations. These include liquidity ratios, profitability ratios,
efficiency ratios, and solvency ratios. Data for the analysis are sourced from ICICI Bank's
financial statements and other reliable sources, covering a period of several years to identify
trends and patterns.

The financial performance analysis reveals several key findings. ICICI Bank demonstrates
strong liquidity and profitability, supported by efficient operational management. However,
challenges such as regulatory changes and market dynamics pose risks to the bank's growth
trajectory. Additionally, competition within the banking industry and evolving customer
preferences require continuous adaptation and innovation.

Risk analysis highlights the importance of effective risk management practices in mitigating
potential threats to ICICI Bank's stability and profitability. Credit risk, market risk, and
operational risk are among the key areas of concern, necessitating proactive measures to
address vulnerabilities and capitalize on opportunities.

Looking ahead, ICICI Bank faces both opportunities and challenges in a dynamic banking
landscape. Capitalizing on emerging market trends, technological advancements, and
strategic partnerships will be crucial for sustaining growth and maintaining competitive
advantage.

In conclusion, this study provides valuable insights for investors, stakeholders, and
policymakers seeking to understand ICICI Bank's financial performance and prospects. By
leveraging its strengths and addressing potential weaknesses, ICICI Bank is well-positioned
to navigate the evolving landscape of the banking industry and drive sustainable growth in
the future.
Company Overview
2.1 Banking Sector in India:

2.1.1 Introduction:
Banking is defined as the business activity of accepting and safeguarding money owned by
other individuals and entities, and then lending out this money in order to conduct economic
activities such as making profit or simply covering operating expenses.

A Bank is a financial institution licensed to receive deposits and make loans. Two of the
most common types of banks are commercial/retail and investment banks. Depending on
type, a bank may also provide various financial services ranging from providing safe deposit
boxes and currency exchange to retirement and wealth management.

Central banks are responsible for currency stability. They control inflation, dictate monetary
policies, and oversee money demand and supply in the market. Commercial or retail banks
offer various services including, but not limited to, managing money deposits and
withdrawals, providing basic checking and saving accounts, certificates of deposit, issuing
debit and credit cards to qualified customers, supplying short-and long-term loans such as car
loans, home mortgages or equity line of credits. Investment banks gear their services toward
corporate clients. They provide services such as merger and acquisition activity and
underwriting among other investment services.

Primary Functions:
 Accepting Deposits: Mobilising deposits from the public is the main activity of the
commercial banks.

 Providing Loans and Advances: The other important function of the bank is to
provide loans and advances to the public, business firms who are in need of money to
meet their day-to-dayrequirements or to establish a business firm etc.

Secondary Functions:
In addition to the primary functions of accepting deposits and disbursing loans, credits the
banks also performing certain other functions termed as secondary functions. Some of the
secondary functions performed by the banks are as follows:
  Provides safe deposit lockers for the safe custody of valuables of the customers

 Foreign exchange deals are performed by the banks on behalf of the customers

 Providing reports on the credit worthiness of their customers

 Providing educational loans to students at a reasonable rate of interest

 They act as an intermediary with respect to the business reputation, financial standing
of the customers.

 On behalf of the customers, the banks buy and sell various securities like shares,
debentures, bonds and other financial instruments

 The banks perform the task of collecting, analysing and providing business
information to their customers

2.1.2 HISTORY OF INDIAN BANKING SYSTEM:

The first banks were Bank of Hindustan (1770-1829) and The General Bank of India,
established 1786 and since defunct. The largest bank, and the oldest still in existence, is the
State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three presidency banks, the
other two being the Bank of Bombay and the Bank of Madras, all three of which were
established under charters from the British East India Company.

The three banks merged in 1921 to form the Imperial Bank of India, which, upon India’s
independence, became the State Bank of India in 1955. For many years the presidency banks
acted as quasi- central banks, as did their successors, until the Reserve Bank of India was
established in 1935. In 1955, RBI acquired control on Imperial Bank of India, which was
renamed as State Bank of India. In 1959, SBI took over control of eight private banks floated
in the erstwhile princely states and making them as its 100% subsidiaries.

In 1969 the Indian government nationalized all the major banks that it did not already own
and these have remained under government ownership. They are run under a structure known
as ‘profit-making public sector undertaking’ (PSU) and are allowed to compete and operate
as commercial banks. The Indian banking sector is made up of four types of banks, as well as
the PSUs and the state banks; they have been joined since the 1990s by new private
commercial banks and a number of foreign banks.
2.2 ICICI Bank:

2.2.1 Introduction:

ICICI Bank Limited is an Indian multinational bank and financial services company
headquartered in Mumbai with a registered office in Vadodara. It offers a wide range of
banking and financial services for corporate and retail customers through various delivery
channels and specialized subsidiaries in the areas of investment banking, life, non-life
insurance, venture capital and asset management.

This development finance institution has a network of 6000 branches, and 17000 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, Chinaand 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. The Reserve Bank of
India (RBI) has identified the State Bank of India, HDFC Bank, and ICICI Bank as Domestic
Systemically Important Banks (D-SIBs), which are often referred to as banks that are “too big
to fail”.

2.2.2 History:
The Industrial Credit and Investment Corporation of India (ICICI) was a government
institution established on 5 January 1955 and Sir Arcot Ramasamy Mudaliar was elected as
the first Chairman of ICICI Ltd. It was structured as a joint-venture of the World Bank,
India's public-sector banks and public-sector insurance companies to provide project
financing to Indian industry. ICICI Bank was established by ICICI, as a wholly owned
subsidiary in 1994 in Vadodara. The bank was founded as the Industrial Credit and
Investment Corporation of India Bank, before it changed its name to ICICI Bank. 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 of parent ICICI
Ltd. into its subsidiary ICICI Bank led to privatization.

In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group, offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. ICICI Bank launched Internet Banking operations in 1998.

ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares
in India in 1998, followed by an equity offering in the form of American depositary receipts
on the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock deal
in 2001 and sold additional stakes to institutional investors during 2001–02. In 1999, ICICI
become the first Indian company and the first bank or a financial institution from non-Japan
Asia to be listed on the NYSE.

ICICI, ICICI Bank, and ICICI subsidiaries ICICI Personal Financial Services Limited and
ICICI Capital Services Limited merged in a reverse merger in 2002. During the financial
crisis of 2007–2008, customers rushed to ICICI ATMs and branches in some locations due to
rumors of bank failure. The Reserve Bank of India issued a clarification on the financial
strength of ICICI Bank to dispel the rumours.

In 2015, ICICI unveiled an outward remittance platform called ‘Money2World’. The first of
its kind, it enabled fully online outward remittance transactions for non-ICICI and ICICI
customers alike. In March 2020, the board of ICICI Bank Ltd. approved an investment of
₹10 billion (US$130 million) in Yes Bank, resulting in a 5% ownership interest in Yes.

ICICI Bank office in Financial District, Hyderabad.

Acquisitions
 1996: ICICI Ltd. A diversified financial institution with headquarters in Mumbai

 1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-bank
financial firm that engaged in hire, purchase and leasing operations. At the time of
being acquired, ITC Classic had eight offices, 26 outlets and 700 brokers.

 1997: SCICI (Shipping Credit and Investment Corporation of India)

  1998: Anagram (ENAGRAM) Finance. Anagram had built up a network of some 50
branches in Gujarat, Rajasthan, and Maharashtra that were primarily engaged in the
retail financing of cars and trucks. It also had some 250,000 depositors.

 2001: Bank of Madura[33]

 2002: The Darjeeling and Shimla branches of Grindlays Bank

 2005: Investitsionno-Kreditny Bank (IKB), a Russian bank

 2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in 1916,
and 30% owned by the Bahte family. Its headquarters were in Sangli in Maharashtra,
and it had 198 branches. It had 158 in Maharashtra and 31 in Karnataka, and others in
Gujarat, Andhra Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were relatively
evenly split between metropolitan areas and rural or semi-urban areas.

 2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for ₹30
billion (US$380 million). Reserve Bank of India was critical of BOR's promoters not
reducing their holdings in the company. BOR has since been merged with ICICI
Bank.

2.2.3 Role in Indian financial infrastructure:

ICICI Bank has contributed to the setting up of a number of Indian institutions to establish
financial infrastructure in the country over the years:

In 1992, India's leading financial institutions, including ICICI Ltd., promoted the National
Stock Exchange of India on behalf of the Government of India to establish a nationwide
trading facility for equities, debt instruments, and hybrids, ensuring equal access to investors
across the country through an appropriate communication network.

In 1987, ICICI Ltd along with UTI set up CRISIL as India's first professional credit rating
agency.

NCDEX (National Commodities and Derivatives EXchange) was set up in 2003, by ICICI
Bank Ltd, LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs, Indian Farmers
Fertiliser Cooperative Limited (IFFCO) and Punjab National Bank.[39]

ICICI Bank facilitated the setting up of "FINO Cross Link to Case Link Study" in 2006, as a
company that would provide technology solutions and services to reach the underserved and
underbanked population of the country. Using technologies like smart cards, biometrics and a
basket of support services, FINO enables financial institutions to conceptualise, develop and
operationalise projects to support sector initiatives in microfinance and livelihoods.
Entrepreneurship Development Institute of India (EDII), was set up in 1983, by the erstwhile
apex financial institutions like IDBI, ICICI, IFCI and SBI with the support of the
Government of Gujarat as a national resource organisation committed to entrepreneurship
development, education, training and research.

Eastern Development Finance Corporation (NEDFI) was promoted by national-level

financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the development of
industries, infrastructure, animal husbandry, agri-horticulture plantation, medicinal plants,
sericulture, aquaculture, poultry and dairy in the North Eastern states of India.

Following the enactment of the Securitisation Act in 2002, ICICI Bank, together with other
institutions, set up Asset Reconstruction Company India Limited (ARCIL) in 2003. ARCIL
was established to acquire non-performing assets (NPAs) from financial institutions and
banks with a view to enhance the management of these assets and help in the maximisation of
recovery.

ICICI Bank helped establish India's first national credit bureau, Credit Information Bureau of
India Limited (CIBIL), in 2000. CIBIL provides credit information reports to its members,
containing the credit history of both commercial and consumer borrowers.

2.2.4 Products:
ICICI Bank offers products and services such as savings and current accounts, trade and
forex services, fixed and recurring deposits, business loans, home loans, personal loans, auto
loans, and gold loans, NRI Banking services, remittances, card services, lockers, agri and
rural services. The digital platforms that ICICI Bank offers include iMobile Pay,
InstaBiz,Digital Rupee App, Retail Internet Banking, Corporate Internet Banking,
Money2India, Money2World, and digital wallet named Pockets by ICICI Bank.

In March 2020, ICICI Bank launched 'ICICI STACK,' a digital banking suite for individuals,
merchants, and corporates, providing online services such as payments, digital accounts,
instant loans, insurance, investments, and more.

In December 2020, ICICI Bank introduced 'iMobile Pay', an interoperable app offering
payment and banking services to customers across various banking institutions. The app was
originally launched as iMobile in 2008. iMobile Pay provides over 350 services. iMobile Pay
registered over 10 million sign-ups from non-ICICI Bank account holders by the end of
September in 2023.

In July 2019, ICICI Bank introduced the InstaBIZ app to offer enhanced banking and value-
added services to micro, small, and medium (MSME) customers, and customers of any bank.
InstaBIZ offers interoperability, enabling merchants to instantly collect payments using UPI
IDs and QR codes. The app currently has approximately 1.5 million active users, with a year-
on-year throughput growth of over 70%.As of September 2022, the platform had accumulated
around 195,000 registrations from non-ICICI Bank account holders.

2.2.5 Subsidiaries
 ICICI Prudential Life Insurance

 Main article: ICICI Prudential Life Insurance

 ICICI Lombard

 Main article: ICICI Lombard

 ICICI Prudential Mutual Fund

 Main article: ICICI Prudential Mutual Fund

 ICICI Securities

 Main article: ICICIdirect

 ICICI Bank Canada

 ICICI Bank Canada

2.2.6 Controversies:
Inhumane debt recovery methods

A few years after its rise to prominence in the banking sector, ICICI Bank faced allegations
on the recovery methods it used against loan payment defaulters. A number of cases were
filed against the bank and its employees for using "brutal measures" to recover the money.
Most of the allegations were that the bank was using goons to recover the credit card
payments and that these "recovery agents" exhibited inappropriately and in some cases,
inhuman behaviour. Incidents were reported wherein the defaulters were put to "public
shame" by the recovery agents

The bank also faced allegations of inappropriate behaviour in recovering its loans. These
allegations started initially when the "recovery agents" and bank employees started
threatening the defaulters. In some cases, notes were written by the bank's employees asking
the defaulters to "sell everything in the house, including family members", were found. Such
charges faced by the bank rose to a peak when suicide cases were reported, wherein the
suicide notes spoke of the bank's recovery methods as the cause of the suicide. This led to
legal battles and the bank paying huge compensation.
Money laundering allegations

ICICI Bank was one of the leading Indian banks accused of blatant money laundering
through violation of RBI guidelines in the famous CobraPost[74] sting operation which shook
up Indian banking industry during April–May 2013.

On 14 March 2013 the online magazine Cobrapost released video footage from Operation
Red Spider showing high-ranking officials and some employees of ICICI Bank agreeing to
convert black money into white, an act in violation of Prevention of Money Laundering Act,
2002. The Government of India and Reserve Bank of India ordered an inquiry following the
exposé. On 15 March 2013, ICICI Bank suspended 18 employees, pending inquiry. On 11
April 2013 the Deputy Governor of RBI, Harun Rashid Khan reportedly said that the central
bank was initiating action against ICICI Bank in connection with allegations of money
laundering.

Chanda Kochhar fraud case

On 4 October 2018, the then MD & CEO Chanda Kochhar stepped down from her position
following allegations of corruption. In January 2019, based on the report of an enquiry panel
headed by Justice Srikrishna, the bank board officially terminated her from service. It also
become one of the first in the country to ask for a claw back of bonuses and benefits. In 2020
the Enforcement Directorate provisionally seized assets and shares belonging to Chanda
Kochhar with an estimated value of more than ₹780 million (US$9.8 million), in relation to
the ICICI bank loan case.

2.2.7 VISION AND MISSION:

Vision: To be the leading provider of financial services in India and a major global bank. To
continuously upgrade & update knowledge & skill set of its human resources. To achieve
excellence in every activity we undertake.

Mission: ICICI will leverage our people, technology, speed and financial capital to be the
banker of the first choice for our customers by delivering high quality, world-class products,
and services.

 expand the frontiers of our business globally.

 play a proactive role in the full realization 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.

2.2.8 BOARD OF DIRECTORS

Mr. Sandeep Bakhshi, Managing Director & CEO
Mr. Anup Bagchi, Executive Director
Ms. Vishakha Mulye, Executive Director
Mr. Girish Chandra Chaturvedi Non-Executive (part-time) Chairman
Mr. Hari L. Mundra Independent Director
Mr. Lalit Kumar Chandel Government Nominee Director
Mr. S. Madhavan Independent Director
Ms. Neelam Dhawan Independent Director
Mr. B. Sriram Independent Director
Mr. Uday Chitale Independent Director
Sandeep Batra President
Rakesh Jha Group Chief Financial Officer
Ranganath Athreya Company Secretary
REVIEW OF LITERATURE
3.1 REVIEW OF LITERATURE:
Banking is a prime mover in the economic development of a nation and research is so
essential to improve its working results. The management without any right policy is like
"building a house on sand". It means an effective management always needs a thorough and
continuous search into the nature of the reasons for, and the consequences of organization. In
line with this, some related earlier studies conducted by individuals and institutions are
reviewed to have an in-depth insight into the problem and exploring the reformation of
banking policy.
A literature review is a description of the literature relevant to a particular field or topic. It
gives an overview of what has been said, who the key writers are, what are the prevailing
theories and hypotheses, what questions are being asked and what methods and
methodologies are appropriate and useful. As such, it is not in itself primary research, but
rather it reports on other findings.
 Mookerji (1998) : Internet Banking is fast becoming popular in India. However, it is
still in its evolutionary stage. By the year 2005, large sophisticated and highly competitive
internet banking markets will develop. Almost all the banks operating in India and having
their websites but only a few banks provide transactional internet banking.
 Daniel (1999) :Customer’s value features in internet banking such as convenience,
increased choice of access to the icici bank, improved control over their banking activities
and finances, case of use, speed and security. From the banks prospective the main benefits
and electronic banking are cost savings, reaching new segments and the population,
efficiency, cross selling, Third –party integration, and customer satisfaction.
 Guruetal., (2000) : Examined the various electronic channels utilized by the
Malaysian banks and also assessed the consumers relations and reactions to these
delivery channels. It was found that either Internet banking was absent or it was not
successful in the local Malaysian banks due to lack and adequate legal frame work
and security purpose. However major percent of the respondents were having internet
access at home and this represented a positive indication for personal computer based
and e-banking in future.
 Sharma (1974) said, "The expansion of banking facilities was uneven and lopsided
and banks were concentrating their operations in metropolitan cities and towns. A
fairly large number of rural and semi urban centre with reasonable potentialities of
 growth failed to attract the attention of commercial banks. As far as the deposit
mobilization in the rural areas is concerned, much remains to be done. “This gives
emphasis on the rural and semi urban growth of banks.
 Furstetal., (2000): Contributed data on the number & National banks in U.S offering
Internet banking and the product and services being offered. Only 30 percent of
National banks offered Internet banking in the Fourth quarter of 1999. However as a
groups these Internet banks accounted for almost 90 percent of National banking
systems assets, and 84 percent of small deposits banks in all size categories offering
Internet banking tend to accounts less on interest – yielding activities and core
deposits than do non internet banks, also institution with Internet banking out
performed non-Internet banks in Terms of Profitability.
 Suganthi ET, al., (2001): Conducted a review of Malaysian banking sites and
revealed that generally all banks are having a web access. Only Four banks out the ten
major banks were in the transactional sites. The rest of sites were at informal level.
There are various psychological and behavioural issues such as trust, security of
Internet Transaction, unwilling to change and preference for human interface which
appear to hinder and growth of Internet banking.
 Kaushik Mukerjee (2006) in his paper “CRM in Banking-Focus on ICICI Bank’s
initiatives” had focused on CRM in Banking and its applications in ICICI Bank. The
CRM in ICICI is being used for targeting customers, sales, consistent interface with
customers, etc. ICICI Bank has managed to focus better on customers by undertaking
a serious approach that has enabled it to manage its operations effectively. It included
better targeting of customers; higher share of wallet; more effective channel
strategies; database marketing, etc. The bank is able to evaluate customer usage
pattern through CRM data warehouse. New products are developed through extensive
customer profiling. Through CRM, ICICI is able to manage its data centrally.
 Bearden, W.O. Teel., J.E. (1983): Used the data to examine the antecedents and
consequences of consumer satisfaction in an empirical consumer panel based a two
phase study of customer satisfaction. Their results supported pervious findings that
expectations and disconfirmation are plausible determinants of satisfaction, and also
suggested that complaint activity may be included in satisfaction/dissatisfaction
research. It highlights “A cognitive model of the antecedents and consequences of
 satisfactions decisions”. The study also concluded that there is a significant influence
on customer satisfaction.
 Srinivasan, P.T. and Harish Kotadia; (1997): Have reviewed various theories of
customer satisfaction. They have stated that, “The theories are growing and gaining
more and more insight into the customer’s psyche.
 Sangeeta Aurora and Minakshi Maihotra (1997): In the paper entitled Customer
Satisfaction A comparative analysis of public and private sector banks”, analysed the
factors determining customer satisfaction They also studied the level of satisfaction
of customers and highlighted the marketing strategies important for increasing the
level of customer satisfaction The sample of the study was selected from the cities of
Amritsar, Ludhiana and Chandigarh in India The sample consists of 100 public and
100 private sector bank customers chosen randomly.
 Primal H. Vyas (2002): In his publication titled “Managing and measuring
consumers satisfaction” briefly conceptualized the review of consumer satisfaction
components of consumers satisfaction and dissatisfaction The theories of consumers
satisfaction process of consumers satisfaction and dissatisfaction were highlighted He
also gave suggestions about the management of consumers satisfaction, methods of
tracking and measuring consumers satisfaction He has given valuable guidelines to
use the consumers’ satisfaction data and the effect of the price on consumers
satisfaction The study gave a brief idea about the models of consumers’ satisfaction
The study finally gave some guidelines in measuring the consumers’ satisfaction.
This was evidenced by measuring the satisfaction of consumers of housing finance,
vehicle finance and in house consumer finance in India.
 Mandell (1977): Discusses ATM adoption in the USA. The first ATM was installed
in the USA in 1969 and, according to Mandell, only 10% of all national banks had
adopted even one ATM after eight years. Mandell states that a bank’s adoption of
innovation depends, for example on its size, branching status and competitive
position. According to Mandell, in those days adoption of new technology was
related more closely to competition than to cost savings.
 Hancock et. al. (1999): Discusses the consolidation of Fed wire and find that
consolidation reduced costs. They investigate the gains from electronic payments
with Norwegian data and conclude that electronic payments lead to social benefits.
 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.
 RESEARCH
METHODOLOGY
4.1 OBJECTIVE OF THE STUDY:
The major objective of the project report is to :-
1. To study the profile of ICICI Bank Ltd.
2. To analyze the performance of ICICI Bank Ltd.
3. The purpose is to portray the financial position of ICICI bank with the help of balance
sheet and profit and loss account.
4. To apply the theoretical knowledge in corporate sector.
5. To see whether ICICI Bank is going well or not in different areas.

4.2 IMPORTANCE OF THE STUDY:

1. By “FINANCIAL PERFORMANCE ANALYSIS OF ICICI Bank” we would be able
to get a fair picture of the financial position of ICICI Bank.
2. By showing the financial performance to various lenders and creditors it is possible to
get credit in easy terms if good financial condition is maintained in the company with
assets outweighing the liabilities.
3. Protecting the property of the business.
4. Compliances with legal requirement.

4.3 RESEARCH METHODOLOGY:

4.3.1 RESEARCH DESIGN:

Descriptive research design is used in this study because it will ensure the minimization
of bias and maximization of reliability of data collected. Descriptive study is based on
some previous understanding of the topic. Research has got a very specific objective and
clear cut data requirements The researcher had to use fact and information already
available through financial statements of earlier years and analyse these to make critical
evaluation of the available material. Hence by making the type of the research conducted
to be both Descriptive and Analytical in nature. From the study, the type of data to be
collected and the procedure to be used for this purpose were decided.
4.3.2 AREA OF STUDY & METHODOLOGY:

In the present study, an attempt has been made to measure, and evaluate financial
performance ICICI Bank. The study is based on secondary data that has been collected from
annual reports of the bank, magazines, journals, documents and other published information.
The study covers the period of 5 years i.e. from year 2019-20 to year 2023-24. Ratio Analysis
was applied to analyse and compare the trends in banking business and financial
performance. Mean and Compound Growth Rate (CGR) have been deployed to analyse the
trends in banking business profitability.

4.3.3 DATA COLLECTION METHOD:

The study is based on Secondary data that has been collected from annual reports of the
bank. The study covers the period of 5 years i.e. from year 2019-20 to year 2023-24.

4.3.4 SAMPLING UNIT:

The present study covers one of the most important banks that is Industrial Credit Investment
Corporation of India (ICICI).
Thus the sample of study are financial report of ICICI Bank

4.4 LIMITATION OF STUDY:

Due to some constraints, the study is likely to suffer from certain limitations. Some of these
are mentioned here under so that the findings of the study may be understood in a proper
perspective. The limitations of the study are:
1. The study is based on the secondary data and the limitation of using secondary data may
affect the results.
2. The secondary data was taken from the annual report of the ICICI Bank. It may be possible
that the data shown in the annual report may be window dressed which does not show the
actual position of the banks.
3. Some of the data are taken to the nearest zero value (i.e. not in decimals) , for calculations
to be made easier.
4. The study of financial performance can be only a means to know about the financial
condition of the company and cannot show a through picture of the activities of the company.
Data Analysis and
Interpretation
5. Data analysis
Methods/Tools Of Financial Analysis
A number of methods can be used for the purpose of analysis of financial statements.
These are also termed as techniques or tools of financial analysis. Out of these, and
enterprise can choose those techniques which are suitable to its requirements. The
principal techniques of financial analysis are:-

 5.1.Balance sheet
 5.2.Income statement
 5.3.Cash flow analysis, Capital structure and Yearly results
 5.4.Ratio analysis

5.1 Balance sheet:

5.1 BALANCE SHEET

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

MAR 24 MAR 23 MAR 22 MAR 21 MAR 20

12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES
AND
LIABILITIES
SHAREHOLD
ER'S FUNDS
Equity Share 1,294.76 1,289.46 1,285.81 1,165.11 1,163.17
Capital
TOTAL 1,294.76 1,289.46 1,285.81 1,165.11 1,163.17
SHARE
CAPITAL
Revaluation 3,143.36 3,070.00 3,027.64 3,065.11 2,817.47
Reserve
Reserves and 1,294.76 1,289.46 1,285.81 1,165.11 1,163.17
Surplus
TOTAL 121,661.81 112,959.27 109,338.32 103,460.63 92,940.85
RESERVES
AND SURPLUS
TOTAL 118,518.45 109,889.27 106,310.68 100,395.52 90,123.37
SHAREHOLD
ERS FUNDS
Minority Interest 6,794.77 6,580.54 6,008.19 4,865.31 3,355.64
Deposits 800,784.46 681,316.94 585,796.11 512,587.26 451,077.39
Borrowings 213,851.78 210,324.12 229,401.83 188,286.76 220,377.66
Other Liabilities 87,414.91 73,940.14 192,445.22 175,671.34 149,834.79
and Provisions
TOTAL 1,377,292.2 1,238,793.8 1,124,281.0 986,042.66 918,756.20
CAPITAL AND 3 9 4
LIABILITIES
ASSETS
Cash and 35,311.93 38,066.28 33,272.60 31,891.26 27,277.56
Balances with
Reserve Bank of
India
Balances with 92,540.99 49,324.62 55,726.53 48,599.61 37,758.41
Banks Money at
Call and Short
Notice
Investments 443,472.63 398,200.76 372,207.68 304,501.74 286,044.09
Advances 706,246.11 646,961.68 566,854.22 515,317.31 493,729.11
Fixed Assets 10,408.66 9,660.42 9,465.01 9,337.96 8,713.46
Other Assets 89,311.91 96,580.14 86,755.00 76,394.78 65,233.57
TOTAL 1,377,292.2 1,238,793.8 1,124,281.0 986,042.66 918,756.20
ASSETS 3 9 4
CONTINGENT
LIABILITIES,
COMMITMEN
 T
Bills for 48,401.26 49,579.19 28,705.41 22,755.55 112,646.68
Collection
Contingent 3,003,053.5 2,612,071.9 1,891,035.8 1,307,841.5 1,070,233.9
Liabilities 4 3 9 1

No of Equity 647.276520 644.623965 642.799077 582.447613 581.476843

share 3 3 6 5 0

 There is a huge fluctuation in the rate of increase in reserves and surplus also. This
shows that bank is effectively utilizing its reserves and surplus.
 There has been a consistent rise in the fixed assets over years.
 The borrowings are also showing a fluctuating rate of increase.
 Similarly advances are also increasing at the same time.

5.2 INCOME STATEMENT:

5.2 INCOME STATEMENT

Consolidated Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 24 Mar 23 Mar 22 Mar 21 Mar 20

INCOME

Interest / Discount on
60,928.31 50,884.83 43,252.82 42,080.37 41,550.90
Advances / Bills
Income from Investments 20,971.20 18,102.29 16,125.62 15,456.07 14,324.47
Interest on Balance with
RBI and Other Inter-Bank 907.41 927.11 810.41 623.00 303.96
funds
Others 2,028.85 2,067.43 1,973.50 2,780.53 3,114.38

Total Interest Earned 84,835.77 71,981.65 62,162.35 60,939.98 59,293.71

 Other Income 64,950.33 59,324.85 56,806.75 52,457.65 42,102.14
131,306.5 118,969.1
Total Income 149,786.10 113,397.63 101,395.85
0 0

EXPENDITURE

Interest Expended 44,665.52 39,177.54 34,262.05 34,835.83 33,996.47

Payments to and
11,156.75 9,425.26 8,333.53 7,893.26 6,912.29
Provisions for Employees
Depreciation 1,169.79 945.84 922.14 911.64 823.89
Depreciation on Leased
1.42 0.00 0.00 0.00 19.22
Assets
Operating Expenses
(excludes Employee Cost 59,189.94 53,887.78 46,499.96 39,365.08 33,034.16
& Depreciation)
Total Operating Expenses 71,517.90 64,258.88 55,755.63 48,169.97 40,789.56
Provision Towards
5,177.81 4,808.28 4,078.21 3,137.56 6,736.54
Income Tax
Provision Towards
2,185.33 -3,089.18 -2,199.29 -668.54 -3,359.04
Deferred Tax
Provision Towards Other
0.00 0.00 0.00 0.00 0.02
Taxes
Other Provisions and
15,014.07 20,461.82 17,972.96 16,582.48 12,305.40
Contingencies
Total Provisions and
22,377.21 22,180.92 19,851.88 19,051.50 15,682.92
Contingencies
125,617.3 109,869.5
Total Expenditure 138,560.64 102,057.30 90,468.95
4 6
Net Profit / Loss for The
11,225.47 5,689.16 9,099.54 11,340.33 10,926.89
Year
Net Profit / Loss After EI
11,225.47 5,689.16 9,099.54 11,340.33 10,926.89
& Prior Year Items
 Minority Interest -1,659.16 -1,434.92 -1,387.36 -1,151.95 -746.93
Consolidated Profit/Loss
9,566.31 4,254.24 7,712.19 10,188.38 10,179.96
After MI And Associates
Profit / Loss Brought
22,020.11 21,999.16 21,504.55 19,821.08 19,827.87
Forward
Total Profit / Loss
available for 31,586.42 26,253.40 29,216.73 30,009.46 30,007.83
Appropriations

APPROPRIATIONS

Transfer To / From
1,982.80 840.90 1,694.40 2,450.30 2,431.60
Statutory Reserve
Transfer To / From
0.37 0.76 1.05 0.98 0.93
Reserve Fund
Transfer To / From
796.63 535.20 620.60 486.70 1,386.00
Special Reserve
Transfer To / From
395.44 28.00 2,565.46 5,293.30 2,382.24
Capital Reserve
Transfer To / From
669.00 0.00 0.00 0.00 0.00
Investment Reserve
Transfer To / From
Revenue And Other 68.63 1,643.72 645.45 44.65 520.70
Reserves
Dividend and Dividend
Tax for The Previous 0.00 0.00 0.00 -6.24 3.85
Year
Equity Share Dividend 645.31 965.13 1,457.46 0.00 2,907.52

Tax On Dividend 228.24 193.31 233.14 235.22 553.91

Balance Carried Over To
26,800.00 22,046.38 21,999.16 21,504.55 19,821.08
Balance Sheet
Total Appropriations 31,586.42 26,253.40 29,216.73 30,009.46 30,007.83
 OTHER ADDITIONAL
INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 15.00 7.00 12.00 18.00 18.00

Diluted EPS (Rs.) 15.00 7.00 12.00 18.00 17.00

 Interest earned shows a rising trend.

 Net profit is excessively increase in the year 2023-24.
 Interest expended are also shows an upward trend

5.3 Cash Flows, Capital structure and Yearly Result:

5.3 CASH FLOWS

CASH FLOW OF MAR 24 MAR 23 MAR 22 MAR 21 MAR 20

ICICI BANK (in Rs.
Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
NET PROFIT/LOSS 26,800.00 5,973.34 9,591.10 12,657.43 13,557.47
BEFORE
EXTRAORDINARY
ITEMS AND TAX
Net Cash Flow From 79,564.75 48,671.05 19,382.93 52,635.53 23,645.32
Operating Activities
Net Cash Used In -42,308.43 - - -1,605.74 -11,819.26
Investing Activities 30,147.22 50,573.45
Net Cash Used From 2,992.18 - 39,675.97 - 5,813.91
Financing Activities 19,997.43 35,469.54
Foreign Exchange 213.52 -134.64 22.81 -105.36 -241.18
Gains / Losses
NET INC/DEC IN 40,462.03 -1,608.24 8,508.26 15,454.90 17,398.80
CASH AND CASH
EQUIVALENTS
Cash And Cash 87,390.90 88,999.13 80,490.87 65,035.97 47,637.17
Equivalents Begin of
Year
Cash And Cash 127,852.92 87,390.90 88,999.13 80,490.87 65,035.97
Equivalents End Of Year

5.3 CAPITAL STRUCTURE

Period Instrument Authorize Issued -PAIDUP-

d Capital Capital
From- To (Rs. cr) (Rs. cr) Shares (nos) Face Capital
Value
2023-2024 Equity Share 2500 1,294.55 6,472,765,203 2 1,294.55
2022-2023 Equity Share 2500 1,289.25 6,446,239,653 2 1,289.25
2021-2022 Equity Share 2000 1,285.60 6,427,990,776 2 1,285.60
2020-2021 Equity Share 1275 1,164.90 5,824,476,135 2 1,164.90
2019-2020 Equity Share 1275 1,162.95 5,814,768,430 2 1,162.95
2018-2019 Equity Share 1275 1,159.45 5,797,244,645 2 1,159.45
2017-2018 Equity Share 1275 1,154.99 1,154,987,255 10 1,154.99
2016-2017 Equity Share 1275 1,153.58 1,153,581,715 10 1,153.58
2015-2016 Equity Share 1275 1,152.71 1,152,714,442 10 1,152.71
2014-2015 Equity Share 1275 1,151.77 1,151,772,372 10 1,151.77
2013-2014 Equity Share 1275 1,114.85 1,114,845,314 10 1,114.85
2012-2013 Equity Share 1275 1,113.25 1,113,250,642 10 1,113.25
2011-2012 Equity Share 1275 1,112.69 1,112,687,495 10 1,112.69
2010-2011 Equity Share 1000 899.27 899,266,672 10 899.27
2009-2010 Equity Share 1000 889.82 889,823,901 10 889.82
2008-2009 Equity Share 1550 616.39 616,391,905 10 616.39
2007-2008 Equity Share 1550 613.02 613,021,301 10 613.02
2006-2007 Equity Share 300 220.36 220,358,680 10 220.36
2005-2006 Equity Share 300 196.82 196,818,880 10 196.82
2004-2005 Equity Share 300 196.82 196,818,880 10 196.82
2003-2004 Equity Share 300 165.00 165,000,700 10 165.00
2002-2003 Equity Share 300 150.00 150,000,700 10 150.00
2001-2002 Equity Share 300 150.00 700 10 0.00

5.3 YEARLY RESULTS

YEARLY RESULTS MAR '24 MAR '23 MAR '22 MAR '21 MAR '20
OF ICICI BANK (in
Rs. Cr.)
INTEREST
EARNED
(a) Int. /Disc. on 57,551.11 47,942.62 40,866.20 39,603.3 38,943.1
Adv/Bills 9 5
(b) Income on 14,673.21 12,796.88 11,568.17 11,377.0 10,625.3
Investment 7 5
(c) Int. on balances 682.15 736.09 663.37 495.46 158.24
With RBI
(d) Others 1,891.85 1,925.60 1,868.15 2,680.36 3,012.69
Other Income 16,448.62 14,512.17 17,419.63 19,504.4 15,323.0
8 5
EXPENDITURE
Interest Expended 41,531.25 36,386.40 31,940.05 32,418.9 31,515.3
6 9
Employees Cost 8,271.24 6,808.24 5,913.95 5,733.71 5,002.35
Other Expenses 13,343.17 11,280.82 9,789.99 9,021.35 7,681.21
Depreciation -- -- -- -- --
Operating Profit 28,101.28 23,437.90 24,741.53 26,486.7 23,863.5
before Provisions and 4 3
contingencies
Provisions And 14,053.24 19,661.14 17,306.98 15,208.1 8,067.81
Contingencies 3
Exceptional Items -- -- -- -- -3,600.00
P/L Before Tax 14,048.04 3,776.76 7,434.55 11,278.6 12,195.7
1 2
Tax 6,117.23 413.46 657.13 1,477.53 2,469.43
P/L After Tax from 7,930.81 3,363.30 6,777.42 9,801.08 9,726.29
Ordinary Activities
Prior Year -- -- -- -- --
Adjustments
Extra Ordinary Items -- -- -- -- --
Net Profit/(Loss) For 7,930.81 3,363.30 6,777.42 9,801.08 9,726.29
the Period
Equity Share Capital 1,294.76 1,289.46 1,285.81 1,165.11 1,163.17
Reserves Excluding 112,091.2 104,029.4 100,864.3 95,737.5 85,748.2
Revaluation Reserves 9 0 7 7 4
Equity Dividend Rate -- 50.00 75.00 125.00 250.00
(%)
ANALYTICAL
RATIOS
a) % of Share by Govt. 0.31 0.25 0.17 0.19 0.14
b) Capital Adequacy -- -- -- -- --
Ratio - Basel -I
c) Capital Adequacy -- -- -- -- --
Ratio - Basel -II
EPS BEFORE
EXTRA ORDINARY
Basic EPS 12.28 5.23 10.56 16.84 16.75
Diluted EPS 12.08 5.17 10.46 16.77 16.65
EPS AFTER EXTRA
ORDINARY
Basic EPS. 12.28 5.23 10.56 16.84 16.75
Diluted EPS. 12.08 5.17 10.46 16.77 16.65
NPA RATIOS :
i) Gross NPA 41,409.16 46,291.63 54,062.51 42,551.5 26,720.9
4 3
ii) Net NPA 10,113.86 13,577.43 27,886.27 25,451.0 13,296.7
3 5
i) % of Gross NPA 5.53 6.70 8.84 7.89 5.21
ii) % of Net NPA 1.41 2.06 4.77 4.89 2.67
Return on Assets % 0.81 0.39 0.87 1.10 1.49

 NPA shows downward trend in last two years which shows positive impacts towards
the bank.

5.4 FINANCIAL RATIOS:

5.4 FINANCIAL RATIOS

FINANCIAL MAR 24 MAR 23 MAR 22 MAR 21 MAR 20

RATIOS
PER SHARE
RATIOS
Basic EPS (Rs.) 14.81 6.61 12.02 15.91 17.53
Diluted EPS (Rs.) 14.55 6.53 11.89 15.84 17.41
Cash EPS (Rs.) 19.15 10.29 15.59 21.03 20.24
Book Value [Excl 185.08 172.45 167.37 174.35 156.97
Reval
Reserve]/Share
(Rs.)
Book Value [Incl 189.93 177.21 172.08 179.61 161.82
Reval
Reserve]/Share
(Rs.)
Operating Revenue 131.04 111.65 96.69 104.61 101.95
Per Share
Net Profit/Share 17.34 8.82 14.15 19.47 18.79
(Rs.)
NP After MI And 14.78 6.60 12.00 17.49 17.50
SOA / Share (Rs.)
KEY
PERFORMANCE
RATIOS
ROCE (%) 2.60 2.39 3.10 3.75 3.46
CASA (%) 44.83 48.77 51.32 49.90 45.40
Net Profit Margin 13.23 7.90 14.63 18.60 18.42
(%)
Net Profit After MI 11.27 5.91 12.40 16.71 17.16
And SOA Margin
(%)
Operating Profit -63.32 -74.51 -76.74 -67.47 -52.57
Margin (%)
Return On Assets 0.69 0.34 0.68 1.03 1.10
(%)
(%) Return On 7.98 3.82 7.16 10.03 11.15
Equity/Net worth
(%)Net Interest 2.91 2.64 2.48 2.64 2.75
Margin
(%) Cost To Income 62.68 65.83 63.55 59.27 55.69
(%) Interest 6.15 5.81 5.52 6.18 6.45
Income/Total
Assets
(%) Non-Interest 4.71 4.78 5.05 5.32 4.58
Income/Total
Assets
(%) Operating -3.90 -4.32 -4.24 -4.17 -3.39
 Profit/Total Assets
(%) Operating 5.19 5.18 4.95 4.88 4.43
Expenses/Total
Assets
(%) Interest 3.24 3.16 3.04 3.53 3.70
Expenses/Total
Assets
VALUATION
RATIOS
Enterprise Value 1,189,399.91 1,110,725.3 960,910.09 830,408.3 781,750.90
(Rs.Cr) 0 5
EV Per Net Sales 14.02 15.43 15.46 13.63 13.18
(X)
Price To Book 1.75 2.31 1.66 1.59 1.51
Value (X)
Price To Sales (X) 2.48 3.57 2.88 2.65 2.32
Retention Ratios 93.25 77.31 81.10 99.99 71.43
(%)
OTHERS
RATIOS
Net worth Ratio(%) 6.99 3.19 6.63 10.11 11.19

Credit deposit 89.85 91.34 94.37 103.28 107.80

Ratio(%)
Debt Equity 162.20 177.30 165.80 178.01 221.60
Ratio(%)
Current Ratio 2.48 2.4 .91 .89 .86
Quick Ratio(%) 15.76 18.66 20.44 16.31 14.97

 CURRENT RATIO:
An indication of a company's ability to meet short-term debt obligations; the higher the ratio,
the more liquid the company is. Current ratio is equal to current assets divided by current
liabilities. If the current assets of a company are more than twice the current liabilities, then
that company is generally considered to have good short-term financial strength. If current
liabilities exceed current assets, then the company may have problems meeting its short-term
obligations.
Current Ratio = Current Assets / Current Liability

Current Rati o
3
2.5
2
1.5
1
0.5
0
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

Interpretation :- An ideal solvency ratio is 2. The ratio of 2 is considered as a safe margin of

solvency due to the fact that if current assets are reduced to half (i.e.) 1 instead of 2, then also
the creditors will be able to get their payments in full.

Current ratio of the firm has increased over the year which indicates that the firm has enough
current assets to pay off its current liability. From 2020 to2022 the current ratio is below 1
which is not a satisfactory safety margin, but from 2023 to 2024 the ratio jumps excessively
and maintain its position above 2 which means banks have enough money now to pay its
current liabilities.

 EARNING PER SHARE:-

Earnings per share (EPS) is the portion of a company's profit allocated to each
outstanding share of common stock. Earnings per share serves as an indicator of a
company's profitability. It measures the profit available to equity shareholders on a
per share basis, that is, the amount that they can get on every day share held.
Earning Per Equity Share = Net Profit after Tax –Preference Dividend
No. of Equity shares
The earnings per share of the company helps in determining the market price of the
equity shares of the company. A comparison of earning per share of the company with
another will also help in deciding whether the equity share capital is being effectively
used or n

Basic EPS (Rs.)

20
18
16
14
12
10
8
6
4
2
0
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

Interpretation:-

Earnings Per Share is the most commonly used data which reflects the performance and
prospects of the company. It affects the market price of shares.
Here the earning per share was consistently declining due to its financials reason and at last
year it increases from the previous one.
Over the years EPS of the firm is decreasing which indicates that per share earnings of the
firm has decreased and in last year it shows an upward trend.

 NET PROFIT RATIO:-

Net profit ratio compares a company’s net income to its net revenue. This ratio is
calculated by dividing net income, or a company’s bottom line, by net revenue. It
measures a firm’s ability to translate sales into earnings for shareholders. Once again,
investors should look for companies with strong and consistent net profit margins.

Net Profit Ratio = Net Profit before Interest and tax *100
Revenue from operation (Net sales)

I
 Net Profi t/Share (Rs.)
25

20

15

10

0
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

Interpretation :-

Although the sales and have increased during the above period but net profit was firstly
increased but in following years it started decreasing and then in last year it increased from
previous one. Net Profit Ratio of the bank is declining in first four years and in last year it
increased from previous years this is because of the reason that net profits and sales are
fluctuating very much,

 OPERATING PROFIT RATIO:-

Operating profit ratio is calculated by dividing operating income (gross income less
operating expenses) by net revenue. Operating ratio examines the relationship between sales
and management-controlled costs. Increasing operating ratio is generally seen as a good sign,
but investors should simply be looking for strong, consistent operating ratio.
Operating Profit Ratio = Operating Profit *100
Revenue from operation
 Operati ng Profi t Margin (%)
0
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24
-10

-20

-30

-40

-50

-60

-70

-80

-90

Interpretation :- It is clearly shown in graph that operating profit of the bank are negative in
last 5 years which is totally not expectable . Bank may need to add new income streams that
can supplement unprofitable ventures or products, or do away with those altogether. By
analyzing the operating profit margins of competitors in its industry, a company can
determine what to aim for. Therefore the bank should check on unnecessary operating
expenses to correct this situation and to provide a sufficient return.
If a bank is experiencing negative operating profit margins, they can only survive as long as
their cash reserves will allow. If they begin to run out of cash on hand, they may have to
sell assets in order to cover their expenses and remain in operation. If selling assets is not a
viable option for whatever reason, seeking outside financing may be the only option left.
Therefore the bank should check on unnecessary operating expenses to correct this situation
and to provide a sufficient return.

 NET WORTH RATIO:-

The net worth ratio states the return that shareholders could receive on their investments in a
company, if all of the profit earned were to be passed through directly to them. Thus, the ratio
is developed from the perspective of shareholder, not the company, and is used to analyse
investor returns. The ratio is useful as a measure of how well a company is utilizing the
shareholders’ investment to create returns for them, and can be used for comparison purposes
with competitors in the same industry.

Return On Net Worth = Net Profit After Interest And Tax *100
Shareholder’s Funds

Net worth Rati o(%)

12

10

0
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

Interpretation:- It is clear visible from the graph that the net worth ratio of ICICI bank was
increased from 7 % to 10% during 2020 to 2024. Which revealed that ICICI bank has utilized
its resources more efficiently and shows that shareholders prefer to invest in ICICI bank.

 DEBT EQUITY RATIO:-

The Debt-Equity ratio is calculated to find out the long-term financial position of the firm.
This ratio indicates the relationship between long-term debts and shareholder’s funds. The
soundness of long-term financial policies of a firm can be determined with the help of this
ratio. It helps to assess the soundness of long-term financial policies of a business. It also
helps to determine the relative stakes of outsiders and shareholders. Long-term creditors can
assess the security of their funds in a business. it indicates to what extent a firm depends upon
lenders to meet its long-term financial requirements. A low Debt-Equity ratio is considered
better from the point of view of creditors.
 Debt Equity Ratio = Total Debt *100
Total Equity

Debt Equity Ratio(%)

250

200

150

100

50

0
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

Interpretation:- The ratio shows the extent to which funds have been provided by long-term
creditors as compared to the funds provided by the owners .Here the Debt-Equity ratio for the
above period is decreased over years this shows that the bank is decreasing its relying on
outside funds as compared to internal sources of capital, in its capital structure. From the
long-term lenders point of view this ratio is satisfactory.

 CREDIT DEPOSIT RATIO: -

The credit deposit ratio popularly known as CD ratio is the ratio of how a bank lends out of
the deposit it has mobilized. RBI does not stipulate a minimum or maximum level for the
ratio, but a very low ratio indicates banks are not making full use of their resources.
Alternatively, a high ratio indicates more reliance on deposits for lending and a likely
pressure on resources. CD ratio helps in assessing banks liquidity and indicates its health.

Deposits = Credit Deposit *100

Ratio Credits
 Credit deposit Rati o(%)
110

105

100

95

90

85

80
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

Interpretation:- Above table exhibits credit deposit ratio of the bank during last 5 years. In
the year 2016 ratio was 107 % and it declined to 103% and 94%in the year 2017 and 2018
respectively. In the year 2008 and 2009 ratio was again decreased to 91% and 89%
respectively. It leads to conclusion that credit performance of the bank at starting is in danger
but after that it maintain its correct position and now credit performance is quite good.

 RETURN ON CAPITAL EMPLOYED:-

It establishes relationship between profit before interest and tax and capital employed. It
indicates the percentage of return on the total capital employed in the business. This ratio is
also known as Return On Investment. It measures the overall efficiency and profitability of
the business in relation to investment made in business. It also shows how efficiently the
resources are used in the business. comparison of one unit with that of the other or
performance in one year with that of the same unit is possible. It is calculated as below:

ROCE = Earnings Before Interest and Tax *100

Capital Employed
 ROCE (%)
4

3.5

2.5

1.5

0.5

0
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

Interpretation:- The above table exhibit the return on capital employed ratio of the bank for
last five years. This ratio measures the earning of the net assets of the business. The ratio was
3.46% in year 2020. After that it rise to the tune of 3.75% and decreasing in the year 2022
and 2023 at 3.10% and 2.39% .In 2024 it rise to 2.6%.
Return on capital employed of the bank is overall decreased in last 5 years which is not a
good result and revealed that bank doesn't use its capital efficiently.
Findings
6.1 RESEARCH FINDINGS:
In this project report there are many facts which say whether an investor should invest in
ICICI Bank or not. The study carried out a closer analysis of ICICI based on their annual
results. During this period the banks were restructured, shed the flab of over employment,
embraced technology and ventured into related new businesses. The financial analysis helped
in better understanding of banks, their financial position, growth and performance.

1. In the analysis of ICICI Bank we can see that EPS was decreasing for 4 years and at
the last year it shows an increment

2. While evaluating the credit deposit ratio, it was concluded that ICICI bank created
more loan assets from its deposits

3. The debt - equity ratio of ICICI bank are decreasing on yoy ,so we can analyse that
long term solvency risk also decreasing.

4. Equity share dividend are decreasing every year , which is not a positive point for the
company and also for shareholders and definitely it affects their stock prices.

5. But if investor want to invest in the company for long term than he can have a good
profit because company growing rapidly in terms of profit .

6. Total interest earned also increasing on yoy but not so much fluctuating happening.

7. Operating Expenses shows major negative result from last 5 years that's create a
negative impact for an India's second largest bank.

8. Net NPA shows increasing and decreasing in last 5 years but in the last year it
decreases from its previous.
Conclusion
7.1 Conclusion:
On the basis of various techniques applied for the financial analysis of ICICI Bank we
can arrive at a conclusion that the financial position and overall performance of the bank is
satisfactory. Though the income of the bank has increased over the period but not in the same
pace as of expenses. But the bank has succeeded in maintaining a reasonable profitability
position.
As there are no promoters in the company , DII holds major parts of its shares followed by
FII. Individuals are the major shareholders. The major achievement of the bank has been a
tremendous increase in its deposits, which has always been its main objective.
Bank’s investments are also showing an increasing trend. Due to increase in advances,
the interest received by the bank from such advances is proving to be the major source of
income for the bank.
Bank should try to finance more and more projects. Financing will help it to earn higher
amount of profits. To achieve organizational success a proper independent working
atmosphere should be developed to achieve desired objective more effectively. Bank should
adopt branch automation experiment to control the operational cost.
According to financial analysis of ICICI bank its performance in the private industry is good
and expected to grow further in the near future which is a good sign for investment.
In this case of ICICI BANK, during fiscal year, the bank continued to grow and diversify its
assets base and revenue stream. Bank maintained its leadership in all main are such as retail
credit wholesale business, international operation, insurance, mutual funds, rural banking etc.
In profit and loss account all items like interest income , non interest income, interest
expenses, operating expenses is increasing.
Similarly in balance sheet all item’s like advanced, cash, liabilities, deposits is increased
except borrowing which is decreased % increased in some items is more than previous year
and in some item’s it is less.
Bibliography
8.1 BIBLIOGRAPHY:
 https://www.moneycontrol.com/financials/icicibank/balance-sheetVI/ICI02
 https://www.financialexpress.com/market/stock-market/icici-bank-ltd-stock-
price/financials-ratios/
 http://www.capitalmarket.com/Company-Information/Overview/ICICI-Bank-
Ltd/5418
 https://in.finance.yahoo.com/quote/ICICIBANK.NS/financials?
p=ICICIBANK.NS
 https://www.business-standard.com/company/icici-bank-5418/financials-ratios/4
 indiainfoline.com/company/icici-bank-ltd/5418
 https://www.marketwatch.com/investing/stock/ibn/financials?
mod=mw_quote_tab

 PROJECT WORK- PROGRESS REPORT

Name of the Student: Abhishek Dilip Rajak Class & Roll No.: MMS B - 109

Project Guide: Prof. Sonali Athawale

Project Title : A study of Financial Analysis Of ICICI Bank

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