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Christ College- Pondicherry University

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LIST OF CHARTS & FIGUR
Chart 1 Chart 2 Chart 3 Chart 4 Chart 5 Chart 6 Chart 7 Sources of Finance Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Figure 14 Status of Advances & CL & Provision Credit & Provision Ratio Status of Deposits & Credits Credit Ratio Status of Deposits & Equity Deposit to Capital Ratio Average Cost of Funds Employed Percentage Status of Interest paid & Deposits Received Credit Deposit Ratio Status of Loans, Advances & Deposits Credit Capacity Ratio Advances & Equity Capital Status of Advances & Shareholders Fund Credit Net worth Ratio Structure of Banking System in India Diversification of ICICI Bank The different Logos of ICICI Bank Shareholding Pattern Mickinsey 7S Model Organization Structure

Christ College- Pondicherry University

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Figure 15 Figure 16 Figure 17 Figure 18 Figure 19 Figure 20 Figure 21 Figure 22 Figure 23 Figure 24 Figure 25 Figure 26 Figure 27

Investment to Deposit Ratio Status of Investment & Deposits Deposits & Shareholders Fund Deposits to Net worth Ratio Status of cash Balance & Deposits Cash Balance to total Deposit Ratio Status of Current Assets & Liabilities Current Ratio Status of Profit & Shareholders Fund Return on Investment Ratio Status of Operating exp & Income Operating Ratio Status of Operating Income & Shareholders Fund Operating Ratio Status of Income & Assets Income to Asset Ratio Status of Net Profit & Total Income Net Profit Ratio Status of Net Profit & Net Assets Net Profit to Net Asset Ratio

Figure 28 Figure 29 Figure 30 Figure 31 Figure 32 Figure 33 Figure 34

Christ College- Pondicherry University

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Pondicherry University 4 .[Type text] LIST OF TABLES Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Credit Rating of ICICI Bank Shareholding Pattern Average Cost of Funds Employed Credit Deposit Ratio Credit Capital Ratio Credit Net worth Ratio Credit to Current liabilities & Provisions Deposit Credit Ratio Deposit Capital Ratio Investment to Deposit Ratio Deposits to Net worth Ratio Cash Balance to Total Deposit Ratio Current Ratio Return on Investment Ratio Operating Overheads to Total Income Ratio Operating Results Ratio Income to Asset Ratio Net Profit Ratio Net Profit to Net Asset Ratio Christ College.

Christ College.Pondicherry University 5 .[Type text] EXECUTIVE SUMMARY A study on Financial Performance of ICICI Bank limited is undertaken in order to know the financial performance and position of the bank and to know the strength & weakness of the bank & to assess the profitability of the bank. Ratio analysis is the tools used as a yardstick for evaluating the financial condition and performance of the business firm.

which generate return on invested capital. Hence. efficient management of every business enterprise is closely linked with efficient management of its finances. It is the master key. Importance of finance Finance is regarded as the lifeblood of a business enterprise. financial instruments and financial markets. An efficient financial system calls for the effective performance of financial institutions. Scope of finance The firm secures capital it needs and employs finance activities. this is because in the modern money-oriented economy finance is one of the basic foundations of all kinds of economy activities. Finance is the lifeblood of economic activity. The business firm mainly engages in activities to perform the functions of finance. which provides access to all the sources for being employed in manufacturing and merchandising activities. Only when it is properly managed. It has rightly been said that business needs money to make more money.[Type text] INTRODUCTION Finance: Finance is one of the major elements.Pondicherry University 6 . machines. thus it requires a number of real assets (plant. it is also true that money begets more money. which activates the overall growth of economy. A well-knit financial system directly contributes to the growth of the economy. furniture) and financial asset (shares and bonds) to receive return on its Christ College. However.

it can reacquire new capital from the same sources by issuing new shares. rightfully a part of equity capital. Retained earnings are another undistributed returns on equity capital. therefore. Finance functions: There are four important finance functions: 1. The finance function of raising and using money although has a significant effect on other function. These processes of raising funds are known respectively as financing. then. Investment and dividend decisions.Pondicherry University 7 . Future benefits are difficult to measure and cannot be predicted with certainly. Its one very significant aspect is the risk of measuring the prospective profitability of new investments. give more weight to financial considerations. The retention of earnings can be considered as a form of raising new capital. Capital Christ College. Investment decision Investment decision or capital budgeting is the oldest area of the recent thinking in finance. they are.[Type text] investments and distributes returns. If a company distributes all earnings to shareholders. yet it needs not necessarily limit or constraint the general running of the business. A company in a tight financial position will. of course. Because of the uncertain future.

Thus. The central issue before him is to determine the proportion of equity and debt. liquidity and risk. he must decide when. Financing decision Financing decision is the 2nd important function to be performed by the financial manager. be evaluated in terms of both expected return and risk. Broadly. Investment proposals should therefore. But it could lose profitability. the financial manager must determine the optimum dividend payout ratio. Liquidity decision Investment in current asset affects firm’s profitability. if shareholders are not indifferent to the firm’s dividend policy. 3. as idle current assets would not earn any thing. The mix of debt and equity is known as the firm’s capital structure. It may become illiquid. 4.Pondicherry University 8 . where and how to acquire funds to meet the firm’s investment needs. Dividend decision The dividend policy should be determined in terms of its impact on the shareholders value.[Type text] budgeting decision involves risk. Thus a proper trade off must be achieved between profitability and liquidity. The optimum dividend policy is one. Christ College. A conflict exists between profitability and liquidity while managing the current assets. 2. which maximizes the market value of the firm’s shares.

Financial institutions 4. Bank 2. which are prepared the business concern or banks at the end of the each financial year. i. Co-operative societies 3. Non-Banking financial institutions.[Type text] Financial services: Many financial institutions giving services to the public these are: 1. Board Of Directors (BOD). Private Banks 5. Foreign Banks 6. Christ College. which start from 1st April of current year to 31st March of next year. The Financial Auditors and accountants. Nationalized Bank 7. (b) POSITION STATEMENT or BALANCE SHEET with the respective schedules forming a part of Balance sheet.e. usually prepare these.Pondicherry University 9 . which is prepared by the concern in order to know their financial position. Meaning of Financial Statements: The term financial statement refers to the statements. The statements are (a) INCOME STATEMENTS or PROFIT & LOSS ACCOUNTS which is prepared in order to know whether the concern has earned profits or sustained loss during the specific financial period.

achievements and weaknesses of the concern. These statements cannot be said to be true and fair representatives of the strengths Christ College. Liquidity and solvency. The following points reflect truly the nature of financial statements of business entities: (i) These are reports or summarized reviews about the performance. (ii) These are prepared at the end of the accounting period so that various parties may take decisions of their future actions in respect of the relationship with the concerns. 1. Cash Flow Statements (CFS). Recorded facts. which are recorded in the business books.Pondicherry University 10 . accounting conventions and personal judgments.e. From this it is clear that three things affect financial statements i. 3. will be reflected in the financial statements. in order to know the positions regarding Profitability. They reflect a combination of recorded facts. Accounting conventions. Only those facts. (iii) The reliability of financial statements depends on the reliability of the accounting data. Ratio analysis.[Type text] To these statements are added the statements of retained earnings and statements such as Funds Flow Statements (FFS). Nature of Financial Statements: Financial statements are prepared for the purpose of presenting a periodical review or report by the management and deal with state of investment in business and result achieved during the period under view. 2. Personal judgments.

Meaning of Analysis of Financial Statements: Analysis is the process of critically examining in detail accounting information given in the financial statements.Pondicherry University 11 . (vi) These statements are influenced by the personal judgment of the accountant though he is expected to be more objective in his approach.[Type text] or profitability of the concern if there are numerous frauds and defalcations in the accounts. For the purpose of analysis. their interrelationship with other related figures established. (v) These statements are prepared as per accounting concepts and conventions. individual items are studied. fixed assets are recorded at historical value without taking into consideration the change in their values due to price level fluctuations. (iv) The figures in the financial statements are a combination of recorded facts. the data is sometimes rearranged to have better understanding of the information with help of different techniques or tools for the purpose. Analyzing financial statements is a process of evaluating relationship between component parts of financial statements to obtain a Christ College. There may be certain developments and factors which may be very important for the business are not taken into account as these are not recorded in the routine of accounting. depreciation of fixed assets and while making distinction between capital and revenue. Moreover. These judgments may relate to valuation of inventory.

The main objectives of analysis of financial statements are to assess: (i) The present and future earning capacity or profitability of the concern. analyzed and compared with the figures of previous years or other similar firms. as early as possible. or for one concern against another. or for one concern against the predetermined standards. Christ College. or for one concern against the industry as a whole (Inter-firm comparison). The ascertainment of trend helps us in making estimates for the future.. whether the trend I upward or downward or static.e. for presentation to the management for managerial control. For this purpose financial statements are classified methodically. Keeping in view the importance of accounting ratios the accountant should calculate the ratios in appropriate form. i. Accounting ratios calculated for a number of years show the trend of the change of position. In the words of Myer. Objectives of Financial Analysis: Financial Analysis is helpful in assessing the financial position and profitability of a concern. or for one department of a concern against other departments of the same concern (Intra-firm comparison). The analysis of financial statements thus refer tot the treatment of the information contained in the financial statements in a way so as to afford a full diagnosis of the profitability and financial position of the firm concerned. This is done through comparison by ratios for the same concern over a period of years.Pondicherry University 12 .[Type text] better understanding of firm’s position and performance. “ Financial statements analysis is largely a study of relationship among the various financial factors in a business as disclosed in a series of statements”.

and (viii)The long-term liquidity of its funds. (iii) The short term and long term solvency of the term for the benefit of the debenture holders and trade creditors. PROJECT TITLE: “FINANCIAL PERFORMANCE OF ICICI BANK LIMITED”.Pondicherry University 13 . (v) The possibility of developments in the future by making forecast and preparing budgets. (vi) The financial stability of a business concern. The researcher also extended his scope to Christ College. Types of Financial Statements analysis: Different types of financial statements analysis can be made on the basis of: (i) The nature of the analyst and the material used by him. (vii) The real meaning and significance of financial data. (ii) The objective of the analysis. This research has been conducted to know and understand the business operations of ICICI Bank. An attempt is made to study the financial performance and the factors influencing the financial aspects. (iv) The comparative study in regard to one firm with another firm or one department with another department. and (iii) The modus operandi of the analysis.[Type text] (ii) The operational efficiency of the concern as a whole and of its various parts or departments.

FINDINGS: The heavy competitions lead to increase in the operating expenses.Pondicherry University 14 .e. 2:1. time constraints etc. For a systematic study. The bank’s earning capacity is moving upward as the bank implemented an aggressive financial policy by keeping its short-term liquidity position under threat. Effective service to the customers is the vital factors for success in the industry. which the bank has to facilitate. Christ College. strength and weaknesses of the bank in handling the financial operations. It is clear from the study that the ICICI Bank focuses more on maximum utilization of its funds so as to contribute much towards profits there by increasing the value for shareholders. Current ratio of the bank has to be brought nearer to the standard i. It continuously expands its net assets that help to earn more returns. tables and graphs were drawn wherever required. Limitations of past records. RECOMMENDATION: Bank has to go for branch expansion process in the vast Indian rural market by providing much ATM facilities in Taluk head quarters. have their impact on the study. Basically the scope of the study was limited to Bangalore Regional office of ICICI Bank. But consolidated financial reports of all the divisions in India were considered for analysis.[Type text] analyze the liquidity position. Inter branch comparison was not possible.

the commercial banks and the Co-operative banks. 2. i. The reserve bank of India is the supreme monetary and banking Christ College. the central bank known as the Reserve bank of India. The aggressiveness shown by the bank in its financial operations helped it to maximize its earnings. INTRODUCTION 2.e.[Type text] CONCLUSION: The over all performance of ICICI Bank is satisfactory. 1) INDUSTRY PROFILE The organized banking system in India is broadly divided into three categories. company utilizes its available funds effectively.Pondicherry University 15 .

Accepting Deposits from public /others (deposits) 2. and order. Lending money to public (Loans) 3. Banks are allowed to perform certain activities. The banking activities can be classifies as: 1. Acting as intermediaries 6. repayable on demand or otherwise and withdrawal by cheques. 1949 defines banking as “accepting. draft. A bank’s relationship with the public therefore revives around accepting deposits and lending money. Another activity. Acting as trustees 5. is transfer of money – both domestic and foreign – from one place to another. Banking Regulation Act of India. The so-called forex (foreign exchange) business is largely a part of remittance. It is known as the “RESERVE BANK” as it keeps the reserve of all commercial banks. which is assuming increasing importance. It involves the buying and selling of foreign currencies. Transferring money from one place to another (Remittance) 4. for the purpose of lending or investment of deposits of money from the public.” Most of the activities a bank performs are derived from the above definition.[Type text] authority in the country and has the responsibility to control the banking system in country. This activity is generally known as “remittance business” in banking parlance. The law governing banking Activities in India is called “Negotiable Instruments Act 1881”.Pondicherry University 16 . which are ancillary to this business of accepting deposits and lending. In addition. Government Business Christ College. Keeping valuable in safe custody 7. Collection business 8.

agricultural laborers and artisans and the small entrepreneurs. The central or district co-operative banks above them state co-operative banks were established. The state bank of India and associate banks along with another 20 banks are the public sector banks. and branches of foreign banks operating in India. regional rural banks and state co-operative banks are scheduled banks. The private sector banks include a number of Indian scheduled banks. Under the RBI Act 1934.they are banks. Non-scheduled banks are those. The scheduled banks are those. The Regional Rural banks (RRB’s) came into existence since the Middle of 1970s with the specific objective of providing credit and deposit facilities particularly to the small and marginal farmers. banks were classified as scheduled banks and nonscheduled banks. which have not been nationalized. The funds of RBI meant for agricultural sector actually pass through the State co-operative banks and central co-operative banks.[Type text] Commercial banks have been in existence for many decades. These have now spread to the urban areas. which are entered in the second schedule of RBI Act. Primary Co-operative credit societies or banks were originally set up in villages to promote thrift and saving of the farmers and to meet their credit needs for cultivation. which have not been including in the second schedule of RBI Act1934. Christ College. All commercial banks – Indian and foreign. which have paid up capital and reserves of an aggregate value of not less than 5 lakhs and which satisfy RBI that their affairs are carried out in the interests of the depositors. 1934. After1969 commercial banks are broadly classified into nationalized or public sector and private sector banks.Pondicherry University 17 .

Exchange Banks. Indian Overseas bank and UCO banks have come out with their initial public offering. 1. They funds for short-term needs of trade of commerce. Savings Banks. 7. Land Development Banks. 4. which provide funds on long term for industries. which are payable on demand or in short notice. INVESTMENT OR INDUSTRIAL BANK Investment Banks are those banks. Like Savings Bank Deposit. Banks such as the union bank of India. Fixed Deposit and Current Deposit. vijay bank. Banks are classified into several types based on the functions they perform. 3. Investment or industrial Banks. 1). Central Banks. 5. 2. 6. As such they lend or invest only for short duration. For the past few years most of the banks have posted very good results quarter after quarter and are displaying their ability for high growth. Commercial Bank.[Type text] The present banking scenario in the country looks extremely promising. Commercial Banks accept three types of deposits. 2). Co-operative Banks.Pondicherry University 18 . They accept these deposit. These Banks have specialized in providing long term loans to industries with a view to buy plant of machinery. The investment Banks obtain funds through share Christ College. COMMERCIAL BANKS Commercial banks perform all the business transaction of a typical bank.

EXCHANGE BANKS Exchange Banks are known as foreign Banks or foreign exchange Banks.[Type text] capital. Debentures and long term deposits from the public. they have to approach land development Banks. They float bonds for the sake of mobilizing funds to provide funds for big industries corporations. In the rural areas these banks supply finances to agriculture. CO-OPERATIVE BANKS Co-operative Banks are promoted to meet the banking requirements of consumers. 6). 3). The Banks also offer interest on these deposits. The foreign exchange banks provide exchange for imports trade. SAVINGS BANKS Savings Banks are specialized financial institutions established to mobilize savings from the people. 5). 4). while in the urban areas they provide finance to consumer goods. They are established not only in the urban areas but also in the rural areas. LAND MORTGAGE BANKS Whenever agriculturist require investment loans. They provide loans on the security of the land.Pondicherry University 19 . These banks also under write or issue new shares of debentures of industrial concerns. The primary object of the commercial Banks is to promote thrift among the low and middle-income groups. Christ College. Their main function is to make international payment through purchased sake of exchange bills. Where loans are given on long-term basis.

Central Bank in an apex Bank in the country. the central bank is the Bank. In fact. which formulates the monetary policy.S c h e d u l e d B a n k s C o .2) COMPANY PROFILE 2. In India.2. CENTRAL BANKS.[Type text] 7). The Industrial credit and investment corporation of India Limited (ICICI) was Christ College. STRUCTURE OF BANKING SYSTEM IN INDIA R B I S B c h e d u l e d a n k s N o n .o p e r a t iC v o m m e r c i a l i e B a n k s B a n k s B a n k s B a n k s I n d i a n B a n k s F o r e i g n B a n k s P u b l i c S B a n k s e c P t r o i vr a t e S B a n k s e c t o r S t a t e B a n k O ot h f e I nr dN i aa t i o R n e a g l i i so e n d a l & B a n k s B a n k s i t s a s s o c i a t e s R u r a l Chart-1 2.HISTORY OF ICICI BANK ICICI Bank was originally promoted by the erstwhile ICICI Limited and SCICI Limited. 1.Pondicherry University 20 . It regulates the notice issue. the Reserve Bank of India is the central Bank of India. controlled and regulated.o p e r a t iC v oe m m e r c C a o l . which keeps the entire banking system unified.

Mehta was appointed the 2nd Chairman of ICICI Ltd. 1956 in January 1994 and received the certificate of commencement of business in February 1994. 1958: Mr. 1960: ICICI building at 163. Mr. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. Bank of Madura Limited was merged with ICICI Bank with effect from 10th March 2001. with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Besides funding from the World Bank and other multi-lateral agencies. the Government of India and representatives of Indian industry. ICICI Bank was originally promoted in 1994 by ICICI Limited and was its wholly owned subsidiary.Pondicherry University 21 . ICICI also among the first Indian companies to raise funds from International markets. It was incorporated as a company under the companies Act. In 1999.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited ICICI emerges as the major source of foreign currency loans to Indian industry. Back Bay Reclamation was inaugurated.[Type text] formed in 1955 at the initiative of the World Bank. G.L. the Government of India and representatives of Indian industry. 1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank. Christ College. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian business. A. 1956: ICICI declared its first Dividend at 3.5%.

First public issue by an Indian entity in the Swiss Capital Markets. ICICI promotes Shipping Credit and Investment Company of India Limited. 1979: Mr. Nadkarni appointed as the sixth Chairman of ICICI. S. (SCICI) Christ College. 1986: ICICI first Indian Institution to receive ADB Loans. 1982: Becomes the first ever-Indian borrower to raise European Currency Units 1984: Mr.Pondicherry University 22 .Siddharth Mehta appointed as the fifth Chairman of ICICI. 1985: Mr. N. Managed its first equity Public issue 1978: Mr.Vaghul appointed as the seventh Chairman and Managing Director of ICICI. 1967: ICICI made its first debenture issue for Rs.6 crore. which was oversubscribed. 1972: Second entity in India to set-up merchant banking services. 1977: ICICI sponsors the formation of Housing Development Finance Corporation. (CRISIL) India’s first professional credit rating agency.[Type text] 1961: The first West German loan of DM 5 million from Kredianstalt was obtained by ICICI. ICICI along with UTI sets up Credit Rating Information Services of India Limited. James Raj appointed as the fourth Chairman of ICICI.

1988: ICICI promotes TDICI .Kamath appointed the Managing Director and CEO of ICICI Ltd. 1998: Introduced the new logo symbolizing a common corporate identity for the ICICI Group. 1993: ICICI sets-up ICICI Securities and Finance Company Limited in joint venture with J. Christ College.car loans. 2000: ICICI Bank becomes the first commercial bank from India to list its stock on NYSE.V. 1996: ICICI becomes the first company in the Indian financial sector to raise GDR. 1997: ICICI was the first intermediary to move away from single prime rate to threetier prime rates structure and introduced yield-curve based pricing.Pondicherry University 23 . Morgan.India’s first venture capital company. ICICI Bank announces merger with Bank of Madura. house loans and loans for consumer durables.[Type text] 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. P. Mr. The name “The Industrial Credit and Investment Corporation of India Limited “was changed to “ICICI Limited”. 1994: ICICI sets up ICICI Bank. K. 1999: ICICI launches retail finance .

2003 -Launches micro-finance programmes -ICICI One source deploys new recruitment system -Sets up NRI advisory service -Singapore govt.Pondicherry University 24 . 2002: Moody’s’ assign higher than sovereign rating to ICICI: ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares. 1.[Type text] 2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank. 400 crore -Installs Telugu language ATMs in Hyderabad -Launches 'ICICI Bank Pure Gold'-certified and tamper proof 24-carat pure gold coins in Chennai -Collects over Rs.200-cr via first bond issue Christ College. offloads 2-cr shares of ICICI Bank -Bank chief K V Kamath appointed head of finance panel for river linking project -Launches 'Give2India' to facilitate donations by NRIs -Comes out with a bond issue of Rs.

[Type text] -Obtains 'excellence in retail banking' award instituted by the Singapore-based Asian Bankers Journal -ICICI Bank-led combine gets approval for Nationwide Multi Commodity Exchange (NMCE) set up -Bio Serve takes up about 3. space at the ICICI Knowledge Park to set up a contract research lab -Sets up integrated currency management center in Pune.Pondicherry University 25 . -Rama Newsprint & Papers Ltd allots 5632129 no. Of Equity shares to ICICI Bank Ltd on conversion right exercised by them -HDFC.000 sq. the Indian bottling subsidiary of the Atlanta-based carbonated soft drinks giant Coca-Cola -Reliance Info forges alliance with ICICI for bill receivables -Ties up with Employees Provident Fund Organization to distribute pension across the country -Ties up with TeNet for micro-banking -Starts 12-hours banking services -ICICI Bank restructures organizational structure -Acquires the Credit Card Division of Tata Finance -Air India ropes in ICICI Bank as authorized dealers for hedging Christ College.ft. ICICI buy 33-pc stake in Hindustan Coca-Cola Beverages.

[Type text] -ICICI Bank along with others set up Rs. 8000-cr securitisation during '02-03 -Enters deal with Pramati Technologies to deploy Pramati Server Software -Tops NPA recovery list among domestic lenders -Unveils Pure Gold coins in Karnataka -Decides to scrap '97 series deep discount bonds -Obtains approval to set up Overseas Banking Units (OBU) -Communication ministry engages ICICI Bank. 800-cr "India Advantage Fund" -Records Rs. Amway launch co-branded international credit card -Picks up 25% shares in NCDEX (National Commodities & Derivatives Exchange) -ICICI directs introduces tax-free Savings Bond '03 online -Videsh Sanchar Nigam Limited (VSNL) and ICICI Bank have announced a tie-up for the distribution of Tata Indicom`s dial-up Internet services -ICICI Bank offers rail ticket booking facility to its customers -Buys Apple Credit's 30-pc stake in Transamerica Apple Distribution Finance Ltd. (TADFL) -Takes over 100-pc of TADFL Christ College.Pondicherry University 26 . IIT to study viability of telecom firms -Unveils NRI remittance product in Canada -ICICI Bank.

[Type text] -Outgoing ICICI Bank Joint Managing Director Mr. HDFC Bank tie up with Indian Railway Catering and Tourism Corporation (IRCTC) for online rail bookings -ICICI Bank.Pondicherry University 27 . the first for the new generation private sector banks -Bags DM Review World Class Solution Award 2003 -Enters into an institutional agreement with Dubai Bank wherein ICICI Bank would be the principal correspondent bank of Dubai Bank in India -Discontinues the contract with Hollywood Superstar Amitabh Bachchan since it finds him too expensive -Embarks on market making securities instruments -Global Finance Magazine awards ICICI Bank as the "Best consumer internet Bank in India" -ICICI Bank empanelled for JNPT's Electronic Data Interchange (EDI) project -Signs option contract with BHEL -ICICI Bank's 1350 employees opt for VRS Christ College. DaimlerChrysler team up for new finance scheme -Gets Insurance Regulatory Development Authority (IRDA) nod for India Advantage Fund -Announces VRS. H N Sinor becomes new chief executive and secretary of Indian Banks Association (IBA) -ICICI Bank.

Pondicherry University 28 .000.000 shares amounting to 12. an NRI remittance product.com's e-filing service -ICICI Bank acquires 17.65% of Himachal Futuristic Communications Ltd (HFCL) -Divests 0. Mumbai -ICICI implements NCR solution (Cheque Mark PDC Module) for post dated cheques -ICICI Bank picks up Timesofmoney.[Type text] -Textile sector leads ICICI Bank's NPA -Approves 7.31% shares in Federal Bank -Converts part of HFCL loan into equity shares giving 12. 2 lakh life insurance benefit to the truck drivers on the purchase of every pair of tyres -Inaugurates its first Offshore Banking Unit (OBU) at SEEPZ Special Economic Zone.3 million options to its employees -Birla Tyres ties up with ICICI bank to offer Rs.75% stake in NDTV -Launches 'Instra Transfer'. which will enable NRIs in the Gulf to transfer funds to India within two hours -Acquires 36.65% stake in the company -Inaugurates Singapore branch -Decides to take the service of Hollywood Superstar Amitabh Bachchan (Big B) on purely case-to-case basis Christ College.

to take possession of the Balangir Sugar Mill . -ICICI bank gets Banker magazine awards for the year -Crisil assigns highest ratings to instruments issued under ICICI Bank's securitisation programme Christ College.[Type text] -ICICI Bank in alliance with Federation of Automobile Dealers Association (FADA) unveils credit card for vendors to dealers and opens a business-to-business (B2B) section in FADA's Web site -West Coast signs agreement to acquire ICICI's 34 percent stake in Rama Newsprint & Papers Ltd.Allotment 287774 equity shares of face value of Rs.each on October 13.Pondicherry University 29 .10/.com forges alliance with ICICI Bank for offering payment gateway to its customers for real-time transfer of funds -Banker Magazine of UK confers its 'Best Multi-Channel Strategy 2003' and Bank of the Year 2003' awards to ICICI Bank -Instanex Skindia depository receipts index increases the index percentage of market capitalization used for ICICI Bank to 95 per cent from 75 per cent -ICICI Bank in association with the Federation of Automobile Dealers Association (FADA) unveils a credit card for vendors to dealers and opens a business-to-business (B2B) section in FADA's Web site -Issues notice to Ponni Sugars (Orissa) Ltd. 2003 under the Employee Stock Option Scheme. (RNPL) -Investmentz.

2003 under the Employee Stock Option Scheme. -Action Aid has signed up with ICICI to launch the Karm Mitra credit card -The trading of ICICI issued bond October 2000.Has set up representative office in Dubai -Allotted 166857 equity shares of face value of Rs. -Tied up with SBI and HDFC to share ATM networks . -The company unveiled its global deposits scheme for individuals from its Singapore branch. R Seshasayee who was appointed as Director on the Bank on May 03. -ICICI Bank unveils global deposits Christ College.Tax Saving Bond .10/.each on October 20. 2002 has tendered his resignation as a Director of the Bank.Option I ICICI1100 N1 (benefit u/s 88) was suspended -ICICI Bank introduced foreign currency term deposit scheme for non-residents including NRI's at its offshore banking unit (OBU) in Mumbai -ICICI tie up with Big Bazaar to introduce Co-branded Card specifically for Big Bazaar customers.[Type text] -ICICI bank gets 'Best emerging market Bank ' award from the Global Finance Magazine -Mr.Pondicherry University 30 . -The company's asset-backed securities (ABS) worth Rs. 835 crore on October 09 obtained highest safety ratings from Icra.

2000 (ESOS). 2000 (ESOS). 2004 -ICICI bank credit cards cross two million mark . 10/.25. 1.99% of the total paid up capital of Tata Infomedia Limited -ICICI Bank Ltd has informed that the Bank has allotted 1.34 crore by encasing a cheque purported to have been issued by Fortis Banque of France. 2003 under the Employees Stock Option Scheme.each on December 29.980 equity shares of the face value of Rs. -ICICI Bank Ltd has informed that the Bank has allotted 73. -ICICI e-Payments Ltd. has informed that they have acquired 8008357 shares amounting to 69. 350 crore 20-year preference shares (subscribed to by ITC) in its books for five years. by two foreign magazines. 2003 under the Employees Stock Option Scheme. It also extended a special concession for offering NRI banking services in the island nation as well as in the international markets 2004 Christ College. -The government has allowed ICICI Bank to keep the Rs. -Bahrain Monetary Agency issues license to ICICI Bank's overseas unit.each on December 22.444 equity shares of the face value of Rs.Pondicherry University 31 . 10/.ICICI Banks 300 million dollar Eurobond has been awarded for being the best bond issue of India and emerging Asian market during 2003.[Type text] -Five persons have been arrested on the charge of duping ICICI Bank of Rs.

Mohun Bagan launch co-branded credit card -The world's largest micro-finance securitisation deal of $4. 2004.[Type text] -ICICI Bank inks pact with Mohan Bagan to unveil co-branded credit card -ICICI-Overdrive awards for Honda City.3mn completed between ICICI Bank and Share Microfin Ltd. -ICICI Bank and Andhra Bank have announced a tie-up that enables sharing of their ATM networks.. Bajaj Pulsar -ICICI Bank ties up with Air Deccan -ICICI Bank opens new premises in Mangalore -ICICI Bank unveils mobile ATM in Kerala -ICICI Bank unveils International fixed deposit scheme at Singapore branch -ICICI Bank acquires Numero uno position in new remittance scheme -ICICI Bank sets up ATM in Thiruvananthapuram -ICICI Bank launches its new home Loan Scheme with Variable EMI -ICICI Bank Ltd has informed that the shares of the Bank are desisted from The Delhi Stock Exchange Association Limited with effect from February 11. -ICICI Bank.Pondicherry University 32 . Christ College. a Hyderabad based micro financing organization -ICICI Bank signs a memorandum of understanding with Jammu and Kashmir Bank to share the ATM network.

the apparel arm of the Sanjay Lalbhai-promoted Arvind Mills. LIC in pact for Rs. -Comes out with a public offering of equity shares at a price of Rs. has acquired a 54 per cent stake in the Bangalore-based Arvind Brands. 20. 3500 crore with a green shoe option of Rs. the private equity arm of ICICI Bank. . 450 crore -ICICI Emerging Sector. -ICICI Bank unveils Car Overdraft facility -ICICI Bank.[Type text] -Global Finance magazine has named ICICI Bank as one of the "Best Emerging Market Banks Asia" in an exclusive survey to be published in the May 2004 issue.200 ATMs in India. 280 to raise Rs.000-cr projects -ICICI Bank and Punjab National Bank have signed a memorandum of understanding (MoU) for ATM network sharing.Pondicherry University 33 .ICICI Bank unveils co-branded credit card ICICI Bank Ebony -ICICI Bank has won the best bank award instituted by Asia money in the category of best domestic commercial bank in India -ICICI Bank has bagged the prestigious award of 'Best Retail Bank in India' in the category 'The Asian Banker Excellence in Retail Financial Services Program 2003' -ICICI Bank-Aircel jointly unveil new co-branded credit card Christ College. giving customers access to over 2. SBI.

324 shares constituting 10.370.Gold.Pondicherry University 34 . a property exhibition at the Institute of Engineers -ICICI Bank Ltd on August 9. opened its representative office in Dhaka further increasing its international presence. In light of the significant bilateral trade links between the two countries.23% of voting rights in the company.009 shares constituting 2. Silver and Blue credit card -ICICI Bank in association with Reliance Infocomm has launched an interactive mobile banking service in India -ICICI Bank unveils multi-branded card -ICICI Bank has introduced a pre-approved personal loan product for Global Trust Bank (GTB) customers -ICICI Bank bags Internet awards from Global Finance magazine -ICICI Bank Home Loans and ICICI Bank Home Search have launched `Home Utsav'. the bank greatly values the need to have an on-the-ground presence -ICICI Bank offers new service to Canada emigrants .[Type text] -Life Insurance Corporation acquires 16. increases its stake to 73. 2004.382.09% of voting rights -Punjab and Sind Bank (PSB) and ICICI Bank on July 02 announced the launch of cobranded credit card that will be available in three variants .Launches 'Hello Canada Newcomers Account' designed to provide instant access to banking services in Canada for Indians migrants on August 23 Christ College.

which charges an interest of 0.Launches `Easy Deposit Card'.[Type text] . Hutch.2. ORIGIN PROFILE Christ College.Pondicherry University 35 .99 per cent per month -ICICI Bank launches new mobile phone banking service -Sets up offshore banking unit (OBU) in Bahrain -Launches a new service for pre-paid subscribers of Airtel. -ICICI Bank has signed a deal with SunTec Business Solutions Private Ltd -ICICI Bank unveils Visa Card in UK CREDIT RATINGS OF ICICI ICICI bank’s credit ratings by various credit rating agencies are given bellow: TABLE-1 AGENCY Moody’s Investor Service Standard & Poor’s(S&P) Credit Analysis & Research Ltd(Care) Investment Information & Credit Rating Agency(ICRA) RATING Baa3 BB+ CAREAAA AAA 2. 2.99 per cent -ICICI Bank rolls out kisan credit card in AP .ICICI Bank introduces an easy deposit card at an interest rate of 0. Orange and IDEA in association with Euronet to recharge cards through bank's ATMs or by sending SMS.

ICICI Bank conducts banking operations in an organized. life and non-life insurance. ICICI Bank has placed great emphasis on the need for competitive.Pondicherry University 36 . 1956 on 5th January. The operations of ICICI Bank are mainly governed by the provision of the banking regulation Act. Christ College. systematic and operationally sound manner. 1934 as a “Scheduled Bank” vide Gazette of India notification dated 5th July 1994.[Type text] ICICI Bank was originally promoted by the erstwhile ICICI Ltd and the erstwhile SCICI Ltd . Delhi. ICICI Bank's equity shares are listed in India on stock exchanges at Chennai.3085/03. ICICI Bank was founded with the objective of providing quality banking services using state-of-the-art of technology. Towards this end. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking. asset management and information technology.It was incorporated as a company under the companies Act. the Stock Exchange. 1994 and received the certificate of commencement of business on 24th February.24B/94 dated 17th May 1994. It was granted a license to carry on banking business in India by the RBI vide its letter no.024 crore and a network of about 475 branches and offices and about 1790 ATMs. Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). DBOD (AH) No. ICICI Bank is India's second-largest bank with total assets of about Rs. efficient and low cost financial intermediation. Kolkata and Vadodara.112.02. 1994. venture capital. it has set up a fully computerized environment with state-ofthe-art technology at its offices and continuously upgrades its strong systems and procedures with special emphasis on risk management.

ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998. greater opportunities for earning fee-based income and the ability to participate in the payments system and Christ College. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits.Pondicherry University 37 .[Type text] ICICI Bank was originally promoted in 1994 by ICICI Limited. and the move towards universal banking. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. an Indian financial institution. In 1999. the Government of India and representatives of Indian industry. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. and would create the optimal legal structure for the ICICI group's universal Banking strategy. 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. the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities. ICICI was formed in 1955 at the initiative of the World Bank. both directly and through a number of subsidiaries and affiliates like ICICI Bank. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry. In the 1990s. and was its wholly owned subsidiary. The principal objective was to create a development financial institution for providing medium-term and longterm project financing to Indian businesses.

both wholesale and retail. ICICI Personal Financial Services Limited and ICICI Capital Services Limited. In October 2001. entry into new business segments. have been integrated in a single entity. seamless access to ICICI's strong corporate relationships built up over five decades. by the High Court of Gujarat at Ahmedabad in March 2002. the ICICI group's financing and banking operations. DIVERSIFICATION OF ICICI BANK LTD Chart-2 Christ College. the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries. with ICICI Bank. Consequent to the merger. and access to the vast talent pool of ICICI and its subsidiaries. particularly feebased services. and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.Pondicherry University 38 . The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations.[Type text] provide transaction-banking services. higher market share in various business segments. Shareholders of ICICI and ICICI BANK approved the merger in January 2002.

Pondicherry University 39 .[Type text] Chart-3 THE DIFFERENT LOGOS OF ICICI SHARE HOLDING PATTERN JUNE 30. 2008 Paid-up capital Rs.39 billion TABLE 2 Christ College. 7.

[Type text] ADR FII'S & NRI'S BANKS FI'S & UTI'S RESIDENT INDIANS CORPORATE BODIES OTHERS SHARE HOLDING PATTERN 1. Christ College. Today.6 3. personal financial services.27% 27.2 15.Pondicherry University 40 .59% 15. the ICICI Group offers financial needs of individuals and products and services in the areas of company’s corporate banking and commercial banking. ICICI has capitalized on market opportunities to stretch the borders of its business.9 1.4 ADR FII'S & NRI'S BANKS FI'S & UTI'S RESIDENT INDIANS CORPORATE BODIES OTHERS 45. and has evolved from a project finance institution to insurance.15% Chart-4 VISION OF ICICI “To be the preferred brand for total financial and banking solutions for both Corporate and individuals” In line with its vision statement.3 45.68% 27.7 6. a financial supermarket providing end-toinvestment banking and venture capital.90% 6.40% 3. end financial services to corporate and retail providing fulfillment to practically all the customers.

The Bank believes that its existence and development are closely interlinked with its ability to serve both the corporate and retail customers. accept. buy. warrants. lend or advance money with or without interest either upon or without security. innovation and stability. raise or take up money. issue. discount. scripts and other instruments and securities whether transferable or negotiable or mercantile or not. negotiate. coupons. The goal is to ensure that dealing with ICICI Bank is safe.  To draw. buy sell and deal in bullion and specie.  To borrow. promissory notes.  To carry on the business of accepting. draft. certificate. order or otherwise. debentures. OBJECTIVES OF ICICI  To establish and carry on business of banking in any part of India or outside India. execute. hundi. letter of credit or obligations. mortgage-backed securities. railway receipts.[Type text] MISSION OF ICICI ICICI bank as an organization has been built on the principles of professionalism. This belief has evolved into its corporate philosophy of growth. of deposits of money repayable on demand or otherwise and withdraw able by cheque. The bank aims to provide the benefits of universal banking to its corporate and retail clients and its investors. traveler’s cheque and circular notes. make. ethics and financial expertise. endorse. simple and efficient. for the purpose of lending or investments.Pondicherry University 41 . bills of lading. collect and deal with bill of exchange. drafts. bonds.  To grant and issue letter of credit. sell. Christ College. ICICI Bank attempts to pursue growth and innovation without compromising on its stability.

Use technology for competitive advantage. To carry on and transact every kind of guarantee and indemnity business. collect and transmit money. 3. Christ College.  To act as an agent for any government or local authority or any other person or persons carrying on agency business. provide safe deposit vaults. treasury bills. rediscounting bills. dealing in commercial papers.  To carry on activities of bill discounting.Pondicherry University 42 . The key elements of ICICI Bank’s business strategy are: 1. STRATEGY OF ICICI The liberalization and growth of Indian economy provides ICICI Bank with significant opportunities to provide superior financial products and services to the corporate and the retail sector. business in which it is lawful for banking company to engage. 2. To undertake and execute trusts and the Administration of estates as executor or trustee. certificate of deposits and other financial instruments. Building international presence. Emphasize conservative risk management practices and enhanced asset quality. negotiable instruments and all securities. Maintaining and enhancing strength in corporate banking. Focus on quality growth opportunities by: • • • Building a strong retail franchise. scripts or valuables on deposits or for safe custody or otherwise.  To issue Debit or Credit cards to the customers or any other person.     To contract for public and private loans and advances and negotiate and issue the same.  To do any other form of business.[Type text]  To receive all kinds of bonds. ICICI Bank’s objective is to enhance its position as India’s premier financial service provider.  To act as a foreign exchange dealer and to buy sell or otherwise deal in all kinds of foreign currencies. which the government of India may specifically as a form of. To act as registrar and transfer agents and registrar to the issue. factoring. issue agents and paying agents.

Leverage on synergies from merger of ICICI and two of its subsidiaries.[Type text] 4.Pondicherry University 43 . AWARDS AND RECOGNITION FOR ICICI BANK & erstwhile ICICI LTD 2005 " Triple AAA Best Cash Management Country Award in India" by the Asset 2004 "Best Bank in India" by Euro money "Best High-Yield Borrower in India" by Euro money "India's Most Customer Friendly Bank" by Outlook Money "Best Bank" by Business India "India Derivative House of the Year" by Asia Risk "Best Consumer Internet Bank in India" by Global Finance "Best Corporate / Institutional Internet Bank in India" by Global Finance "Most Challenging IT Implementation Award" for the ICICI Bank EAI project by PC Quest "Best Domestic Commercial Bank" in India by Asia money "Best Emerging Market Bank in India" by Global Finance "Best Domestic Fx Bank in India" by Asia money Poll "Best Bank of the Year in India" by Finance Asia "Best Retail Bank in India" by Asian Banker "Best Foreign Exchange Bank in India" by Global Finance "India's Most Admired Private Sector Bank" by Business Barons 2003 "Best Bank of the Year in India" by Finance Asia "The Asian Banker Excellence in Retail Financial Services Program" by the Asian Banker "Best Bank Domestic Commercial Bank in India by Asia money Christ College. Attract and retain talented professionals. and 5.

[Type text] "Best Emerging Market Bank in India" by Global Finance Magazine "Best Multi-Channel Strategy 2003' award by The Banker Magazine. OLTP in Winter Corp.'s Top Ten Program DM Review Magazine-World Class Solution Award 2003 in the Business Intelligence category for its Teradata enterprise data warehouse solution. Business World Magazine 2000 Best Bank Award by Global Finance. "Bank of the Year in India" by the Banker Grand Prize Winner in Peak Workload. in a Poll by Euro money India's top 5 most respected companies . by The Banker Magazine of UK Best Managed Bank in Asia.Business World magazine Best Bank in India by Global Finance India's Most Admired Bank 2002 in the BB-TN Sofres Mode Poll 'Best Foreign Exchange Bank in India' by Global Finance. UK. Unix Environments. "Best Consumer Internet Bank in India" by Global Finance magazine "Best Integrated Consumer Bank Site in the Asia /Pacific Region" by Global Finance "Best Foreign Exchange Bank in India" by Global Finance "Best Trade Finance Bank in India" by Global Finance 2002 Bank of the Year from the Emerging Markets by the Banker Magazine of UK Bank of the Year 2002.Pondicherry University 44 . India's top 5 most respected companies. 'Excellence in Retail Banking' award by Asian Bankers Journal Best Consumer Internet Bank in India by Global Finance Best Bank in India by Global Finance India's Most Admired Bank 2002 in the BB-TN Sofres Mode Poll 2001 Best Retail Bank in India from the Asian Banker Product Innovation Award for Kid-e-bank account from the Asian Banker. in India. Christ College.

5% interest rate per annum.900 ATMs and presence in over 280 cities across the country. 2. 7 days a week. viewing the balance. 1999 Best IT usage Award by TCS Limited and Computer Society of India. SAVINGS BANK ACCOUNT ICICI Bank offers a power packaged account that offers a host of convenient features. 1. phone and the internet like ordering a cheque book. Asian Banking Award by the Asian Banker's Association for record collections under the Resurgent India Bonds Scheme. Anywhere: Being one of the largest banking networks in the country with the 560 branches. The savings bank account earns the customer 3.[Type text] I-payment was selected as a finalist in the commercial credit product or services category in the Asian Banking Awards Featured amongst the best 15 bank web sites in the world reviewed by Forbes Global.Pondicherry University 45 . The main offering of ICICI bank is below: 1. Anytime: you can access your account from any of the ICICI Bank ATMs across the city or the country 24 hours a day. Christ College. This includes access to the accounts. Anyway: Access to vast majority of services through the ATM.3. PRODUCT/ SERVICES PROFILE ICICI Bank boasts of a comprehensive suite of products and services that make it a universal bank. etc so that the account holder never needs to visit a branch for doing a business.

BILL PAYMENT: Utility bills like telephone. mobile phones. if the balance in the account exceeds Rs. This amount is totally liquid and is withdrawn. Christ College.[Type text] Value Added benefits include: Quantum Optima / Automatic sweep facility: On opening the savings account. 5000. 10. 5000.com through ICICI Bank. Interest is calculated on a LIFO basis 2. electricity bills etc can be paid online or through phone banking. Minimum balance to be maintained: All the above can be availed by maintaining a quarterly average balance of Rs. 3.000 the additional amount gets automatically shifted into fixed deposits in multiple of Rs. RBI Bonds and insurance as well as trade in the stock market through ICICI Direct. INVESTMENT SERVICES: The account holder can make the investment in mutual funds. Standing instructions: Can be given like transferring funds to another account at regular intervals.Pondicherry University 46 . Free personalized cheque book: With an ICICI Bank account the holder will gets a free cheque book with his name written in style at the bottom free of charge.

500/. 1000/Special privileges across all alliance partners’ outlets.Pondicherry University 47 . Minimum balance at Rs. offered by ICICI Bank to help the parents to meet the present and future aspirations that they hold for their child. 1. A special recurring deposit account with additional features as below: The parent would put forward the desired amount to be earned at the end of the tenure. The main offerings of this account are: Options of a savings bank account. the bank staff would then back calculate the installments to be deposited now till maturity Free personalized cheque book. Christ College.[Type text] 4. Free domestic debit card for the child above the age of 10 years with features as below: • • • • Daily withdrawals limits of Rs. It offers various savings ad investment options to the parent along with teaching the child to manage his/her personal finance in a more responsible and independent manner.000/Daily spend limits of Rs. ICICI BANK YOUNG STARS ACCOUNT/ (ACCOUNT FOR MINORS) Young stars is banking a service fir children aged 1-18 years . Facility to invest in GOI Relief and Mutual Fund.per quarter for savings Bank. Fixed Deposits account or Recurring Deposits Account. Based on the prevailing rate of interest.

6.[Type text] 5. 1000 for the children above 10 years of age. Facility to transfer funds from parent account to kid account to enable parent to inculcate savings habit amongst children. It requires a quarterly average balance of just Rs. 7. Organizations can opt for salary accounts to enable easy disbursements of salaries and enjoy numerous other benefits too. ICICI BANK SALARY ACCOUNT ICICI Bank salary account is a benefit –rich payroll account for employers and employees.Pondicherry University . Special Shopping powers up to Rs. 48 Christ College. FREE INTERNET BANKING: Separate user Id and password for both parents and children. 500 to be maintained and offers the below features: • • • • • • Free personalized cheque book Free Phone Banking Free ICICI Bank Ncash debit card Free transfer of funds into his/her account from any ICICI bank account Free supplementary credit card (if you have an ICICI Bank credit card) Annual statement of accounts. With ICICI Bank salary accounts the employees will enjoy the convenience of: • • • Having the largest network of ATMs at their command Free 24 hours phone banking Free internet banking. Access to special zones and links to related websites for making internet Banking a memorable experience. BANK @ CAMPUS OR STUDENT BANKING SERVICES Bank @ campus is basically a savings account designed for students.

banking needs are well taken care of. Anywhere banking facility. Pay orders and Demand drafts. 8. ICICI Bank Salary Accounts benefits the company in more than one ways: • • • Reduce paper work. Account can be accessed at over 475-networked branches across the country. Employees receive instant credit of salaries.com or even get Mobile banking alerts. employees will automatically become ICICI Bank account holders with special benefits and privileges of reduced minimum balance norms. ROAMING CURRENT ACCOUNT The roaming current account from ICICI Bank travels the distance with ones business.icicibank. Some of the other benefits are: • • • • • Multi city cheque facility.Pondicherry University . 49 Christ College.[Type text] The requirements of the company is to send ICICI Bank an advice (in form of a cheque /debit instruction etc) for the total salary amount along with the salary details of the designated employees in a soft and hard copy format and we will credit the respective employees accounts as per your statement of advice. Upcountry cheque collection. With advanced technological features such as Multi-City Cheques and local cheques collection. There is also round the clock phone banking and also one can log in to www. Savers remittance costs. Phone banking facility. Besides all the above.

Mini account statements. Debit/ATM card be used for the following transactions. Cheque book request. 11. CREDIT CARDS Various types and kinds of credit cards are offered by ICICI bank. The minimum period is 6 months and thereafter in multiples of 3 months.Pondicherry University 50 . 9. These deposits encourage savings and loans can be claimed against the deposits. • • • • • Cash Withdrawal.[Type text] • • • • Doorstep banking facility. The wide offerings are: Christ College. Debit/ATM Card.000 and thereafter in multiples of Rs. 1. 100. Transactions at various merchant establishments across the country 10. Internet banking facility. Cash Deposit. Balance Inquiry. The minimum balance of deposit is Rs. RECURRING DEPOSITS Recurring deposits are an ideal way to invest small amounts of money every month and end up with a very large savings of maturity. DEBIT/ATM CARD This facility is available for sole proprietorships and partnership concerns. Mobile Banking Facility. These are all different to car themed and suits ones budget.

The very essence of a mutual fund is a diversification and this it self reduces risk.[Type text] True Blue Card. 12.Pondicherry University 51 . ICICI Bank American Express Card. Hindu Undivided Families. Christ College. ICICI BANK NRI SERVICES A wide range of services tailored to the specific needs of NRI’s. 14. MUTUAL FUNDS There is a great scope to invest in mutual funds managed by experienced and professional asset management groups. Solid Gold Card. Amway Credit Card. 13. The ICICI Bank has started new services called “Investment & Services Group” in its all branches. which are subjects to tax as applicable. Sterling Silver. HPCL Silver Card. ICICI Bank Big Bazaar Credit Card & ICICI Bank True Value Credit Card. GOVERNMENT OF INDIA BONDS The government of India 8% savings Bonds (Taxable): The 8% option however. This will provide the free advice to its customer about the different. ICICI Bank Gold American Express Card. BPL Mobile Credit Card. is for resident Indians. tax advisory and investment facilities. They attract a high interest rate of 8% per annum. The fund will invest in stocks of different companies and different industries. The tenure for these bonds is 6 years and is exempt from wealth tax. HPCL Gold Card. The bank offers internet banking remittance. charitable institutions and universities.

TATA Mutual Fund. Income Plan.Pondicherry University 52 . HDFC Mutual Fund.[Type text] Investments and mainly it concentrates on the investments in mutual funds. Balanced Fund. Reliance Mutual Fund . DSP Merrill Lynch Mutual Fund. Growth Plan. FMCG Fund. It will give assistance to its customer depending upon the following criteria. PRUDENTIAL ICICI Mutual Fund. Kotak Mutual fund. Gilt-investment. The age of the investor The holding time horizon of an investment The risk profile of the investor The investment amount (fund) and also ICICI Bank is the broker of the other mutual funds namely Birla Sun Life Mutual Fund. HSBC Mutual Fund. JM Mutual Fund. Gilt-Treasury. Franklin Templeton Mutual fund. 15. These offer various options based on the requirement of the investors like Liquid Plan. Standard Chartered Mutual Fund. ICICI Bonds Christ College. Tax plan.

Also the rate of interest on the loan is only 1% over the rate of interest on the fixed deposit. Tax Saving Infrastructure Bonds. 5% higher interest compared to the interest earned on fixed deposits. Free Collection of Cheques Christ College. 16. i. The advantages are: • • Higher interest rates on Fixed Deposits The deposit scheme offers preferential rates to senior citizens. BSE and VSE. All ICICI Bank Bonds have been rated “AAA” by CARE and “LAAA” by ICRA indicating the highest degree of safety for your money..[Type text] ICICI offers to its customers a wide range of long-term deposits products like safety bonds. and Pension Bonds and issued by ICICI through periodic public issues.e. ICICI Bank the facilities of availing up to 90% loan on the fixed Deposit amount.Pondicherry University 53 . 17. LOANS AGAINST DEPOSITS As a special gesture to senior citizens. Children Growth Scheme. The bonds are listed on NSE. SENIOR CITIZENS SERVICES ICICI presents the senior citizen services. which primarily comprises of a savings bank account that’s an ideal investment choice for citizens above 60 years of age.

1 Crore are available. II) PERSONAL LOANS An all purpose customer friendly loan with no security. and there no charges for the part prepayment. collateral or guarantors available from as low as Rs. 18.[Type text] The senior citizens can avail free collection outstation cheques drawn on location where ICICI Bank has a presence. Each home loan comes with a free accident insurance cover.Pondicherry University 54 . Customer can avail of finance up to 90% of the value of the car. 1 lakh to Rs. 20000 to Rs. along with complete doorstep services. Following are the different loans offered by the ICICI Bank I) HOME LOANS ICICI Bank offers you the most attractive interest rates. 5 lakh with a wide range of repayment tenures. Moreover no guarantors are required. III) CAR LOANS ICICI Bank Car Loans are tailor made to suit all customers’ needs. Most attractive interest rates coupled with customized loan options and tenures ensure the best possible deals for all customers IV) CONSUMER DURABLE LOANS Christ College. LOANS ICICI Bank offers the different categories of loans to its customers at highly competitive interest rates. with repayment period up to 30 years. Loans ranging from Rs.

Systems. Microwave Ovens or Music. It went on to appear in “In Search of Christ College. Customer can able to avail up to 85% of finance. The Seven S model was born at a meeting of the four authors in 1978. They had been looking at how Japanese industry had been so successful. a minimum loan of Rs. Washing Machines. V) LOANS AGAINST SECURITIES VI) TWO WHEELER LOANS ORGANIZATION STUDY-MCKINSEY 7S MODEL The Seven Framework first appeared in “The Art of Japanese management” by Richard Pascale and Anthony Athos in 1981. Loans by the way of an overdraft facility against the pledge of demat securities provided by ICICI Bank. 7000 repayable in convenient options of 6 to 36 monthly installments is offered For durables products like color TVs.[Type text] Customer can able to avail loans ICICI Bank provides customized options to ensure that customer get the best value with great ease. at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent.Pondicherry University 55 . Refrigerators. The best interest rates and loans of value added services come with this loan.

Those seven elements are distinguished in so called hard S’s and soft S’s. Strategies and Systems of the organization. The model starts on the premise that an organization is not just Structure. and was taken up as a basic tool by the global management consultancy McKinsey: it’s sometimes know as the McKinsey 7S model. This is because. systems. Although the soft factors are below the surface. corporate plans. and proper attention should be paid to each one of them. They are highly determined by the people at work in the organization. organizational charts and other documentations. Strategy. The four soft S’s however. They can be found in strategy statement. are hardly feasible. were consultants at McKinsey& Co at that time. staff. They are difficult to describe since capabilities. managers. style. structure.e.[Type text] Excellence” by Peters and Waterman. Tom Peters and Robert Waterman. According to them. Christ College. All the seven Ss are interdependent. values and elements of corporate culture are continuously developing and changing. need to take account of all seven of the factors to be sure of successful implementation of a strategy-large or small.. and skills. super ordinate goals (also known as shared values). Therefore it is much more difficult to plan or to influence the characteristics of the soft elements.Pondicherry University 56 . The hard elements are feasible and easy to identify. but consists of seven elements: i. they can have a great impact of the hard Structures.

[Type text] chart-5

DESCRIPTION THE HARD S’S STRATEGY: Actions a company plans in response to or anticipation of changes in its external environment. STRUCTURE: Basis for specialization and co-ordination influenced primarily by Strategy and by organization size and diversity. SYSTEMS: Formal and informal procedures that support the strategy and structure.

(Systems are more powerful than they are given credit) The Soft S’s STYLE/CULTURE: The culture of the organization, consisting of two components:

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[Type text] Organizational Culture: the dominant values and beliefs, and norms, which develop over time and become relatively enduring features of organizational life. Management Style: more a matter of what managers do than what they say; how do a company’s managers spend their time? What are they focusing attention on?

Symbolism-the creation and maintenance (or sometimes deconstruction) of meaning is a fundamental responsibility of managers.

STAFF: The people/human resource management-processes used to develop managers, socialization processes, and ways of shaping basic values of management cadre, ways of introducing young recruits to the company, ways of helping to manage the careers of employees. SKILLS: The distinctive competences- what the company does best, ways of expanding or shifting competences Shared Guiding concepts, fundamental ideas

around which a business is build-Values/ must be simple, usually stated at abstract level, have great meaning Super may not see or Ordinate GOALS If one element changes then this will affect all the others. For example, a change in HR-systems like internal career plans and management training will have an impact on organizational culture (management style) and thus will affect structures, processes, and finally characteristic competences of the organization. inside the organization even though outsiders

understand them

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[Type text] The 7-s Model is a valuable tool to initiate change processes and to give them direction. A helpful application is to determine the current state of each element and to compare this with the ideal state; Based in this it is possible to develop action planes to achieve the intended state.

7S MODULE OF ICICI
1. STRATEGY ICICI Bank has also bagged the ‘Best Multi-Channel Strategy’ 2003, in the banker Awards 2003. The bank has won the award for successfully implementing the multi-channel strategy combining traditional banking channels with newer alternative channels to expand its geographical pr essence despite underdeveloped communications infrastructure. It also follows the Strategy of building a diversified and derisked asset portfolio. ICICI Bank’s Growth Strategy involves: • Fully tap the growing market through higher incremental market share than competition • • • • Adopt innovative strategies to expand the market Greater geographical penetration Introduction of new products in various segments. Provide high quality customer convenience & service

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Focus on highly rated corporate finance. Prompted in part by regulation that requires all banks to serve the rural market. partner with micro finance institutions (MFIs) who will act as loan service “agents. The bank’s wholesale banking strategy involves: • • • • 2. This strategy has rapidly boosted the retail business both in terms of deposits and assets. ICICI Bank is developing multiple channels to deliver micro finance. using multiple distribution channels. Limited project finance business with focus on syndication and sell-down. and to offer a comprehensive range of innovative financial pr9oducgs and services across the country. It is finding innovative and profitable ways to extend financial services to the rural poor. over 1790 ATM.” and collaborate with social entrepreneurs to establish Greenfield MFIs. Leverage corporate relationships to cross-sell. ICICI Bank also has a micro finance strategy. more than five million deposit accounts and one million Internet banking customers. The bank has a solid retail distribution franchise with about 540 branches and offices.[Type text] • ICICI has pursued the business strategy of becoming a universal bank. It proposes to finance a network of village internet kiosks. Rapidly grow market share in fee-based products and services. The business strategy in the retail operations is to establish a strong financial services brand.Pondicherry University 60 . STRUCTURE Christ College.

Pondicherry University 61 . and is flexible while at the same time ensuring effective control and supervision and consistency in standards across business groups. The Special Assets Management Group is responsible for large non-performing loans and accounts under watch. Project Finance & Special Assets Management. The Retail-banking group comprises ICICI Bank’s retail assets business including various retail credit products. constantly evolving and responsive to changes b9oth in the external and internal environments.[Type text] ICICI bank believes that the structure of an organization needs to be dynamic. 3. Christ College. Government and public sector entities and emerging corporate. Retail Banking . Treasure. oil & gas. 2. structured finance and credit portfolio management also form part of this group. The organization structure is divided into 5 principal groups:1. The Wholesale Banking Group comprises ICICI Bank’s corporate banking business including credit products and banking services. retail liabilities (including deposit accounts) and rural micro banking. manufacturing and shipping sectors. Wholesale Banking. Their organization structure is designed to support their business goals. with separate dedicated groups for large corporate. The Project Finance Group comprises the project finance operations for infrastructure.

[Type text] 4. ORGANIZATION STRUCTURE Chart-5 Chairman (N Vaghul) Managing Director & CEO (K V Kamath) Joint Managing Director (Lalitha D Gupte) Christ College. legal. including finance and secretarial. risk management. investor relations. International Business.Pondicherry University Joint Managing Director (HN Sinor) 62 . 5. The International Business Group is responsible for ICICI Bank’s international operations as well as co-coordinating the international strategies and alliances of its subsidiaries and affiliates. The Corporate Center comprises all shared services and corporate functions. human resources and corporate branding and communications. Corporate Centre.

[Type text]

Exec. Director. Corp. Center (Kalpana Morparia)

Exec Director Project Fin & Spl. Assets (S Mukherji)

Exec Director Retail Banking (Chanda D Kochhar)

Exec. Director Wholesale Banking (Nachiket Mor)

Senior Senior General Structure Contd. General Organization Manager Manager

Senior General Manager

Senior General Manager

Senior General Manager

Senior General Manager

General Manager General Manager Joint General Manager General Manager General Manager Joint General Manager General Manager

Deputy GM

Deputy GM

Deputy GM

Deputy GM

Asst. GM

Asst. GM

Asst. GM

Chief Manager

Chief Manager

Chief Manager

Manager

Manager

Asst.Manager

Asst.Manager

Sen Officer Christ College- Pondicherry University

Sen Officer

63

[Type text]

Officer

Officer

3. SYSTEMS The decision-making systems within the organization can range from management intuition, to structured computer systems to complex expert systems and artificial intelligence. It includes: ♦ ♦ ♦ Computer Systems Operational Systems HR Systems, etc ICICI bank uses powerful-networked computer database known as finnacle. The bank has also needed to manage the technology risks associated with migration from its legacy systems to the new technologies necessary to manage the increasing volumes of transactions at net speed. The bank also has its own performance review and reward systems, which is very unique and powerful in the industry. ICICI Bank is at the forefront of usage of technology in the financial services sector. It has used Information Technology as a strategic tool for its business

operations, to gain competitive advantage and to improve overall productivity and efficiency of the organization. Christ College- Pondicherry University 64

[Type text] Enhanced level of customer services like 24/7 services, Internet banking, multi channel banking, etc Cost efficiency like reduction in traditional branch network/service staff, wider and focused market reach and opportunities for cross selling Application of Information Systems to effectively market to their target customers and to monitor and control risks. ICICI Bank was one of the first banks in the country to put in place a nationwide data communications network connecting all its offices/branches. It has also installed an advanced banking system, which addresses its corporate banking as well retail-banking requirements. It is robust, flexible and scalable and allows ICICI bank to effectively and efficiently serve its growing customer base. 4. STYLE Style refers to 2 components: 1. Organizational Culture: the dominant values and beliefs, and norms, which develop over time and become relatively enduring features of organizational life. 2. Management Style: more a matter of what managers do than what they say; how do a company’s managers spend their time/ What are they focusing attention on/ Symbolism-the creation and maintenance (or sometimes deconstruction) of meaning is a fundamental responsibility of managers behave? In ICICI bank, the style adopted is a participative one wherein information can flow upwards to the top management from down. In this way different consumer’ wants, attitudes, behavior, etc can be analyzed in a much more effective manner.

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ICICI Bank has a staff center which serves as a forum for grievances. teamwork is valued and success is rewarded. It dedicates significant amount of senior management time to ensure that employees remain highly motivated and perceive the organization as a place where opportunities abound. offering a wide range of career opportunities across the entire spectrum of financial services. competencies and experience into the organization and met the requirements of rapidly growing businesses. A Six Sigma initiative has been undertaken for the lateral recruitment process to improve capabilities in this area. A Christ College.[Type text] 5. ICICI Bank attracts the best graduates from the premier business schools of the country. In addition to campus recruitment. ICICI Bank encourages cross functional movement. enriching employees’ knowledge and experience and giving them a holistic view of the organ9isation while ensuring that the bank leverages its human capital optimally. Employee compensation is clearly tied to performance and ICICI Bank encourages the involvement of all its employees in its overall performance and profitability through profit sharing incentive schemes based on the financial results. STAFF The management believes that it has a good relationship with its staff. pay and benefit negotiations and other industrial relations matters. ICICI Bank also undertakes lateral recruitment to bring new skills.Pondicherry University 66 . innovation is fuelled. ICICI Bank is one of the most preferred employers at leading business schools and higher education institutions across the country. Robust ability-testing and competency-profiling tools are being used to strengthen the campus recruitment process and match the profiles of employees to the needs of the organization.

ICICI Bank boasts of its ability to nurture individuals and provide them the space and empowerment they need to hone their talents. the development and management of human capital is an essential element of their strategy and a key management activity. 6. drawn from industry. The training center regularly offers courses conducted by faculty. academia and from the company itself. but it takes the human and managerial input to translate these into a sustainable competitive advantage. Training programs are also conducted for developing functional as well as managerial skills. These training programs include orientation sessions for new employees and management development programs for mid-level and senior executives.[Type text] revised performance appraisal system has been implemented to assist management in career development and succession planning. both national and international. The competencies required at the entry level in ICICI Bank include: Drive for results Process Orientation Christ College. ICICI Bank views its human capital as a key source of competitive advantage.Pondicherry University 67 . ICICI Bank has a training center Khandala. which conducts a series of training programs designed to meet the changing skill requirements of its employees. The size of the organization gives them the unique ability to provide fast growth and high responsibility early in one’s career as well as multiple avenues to reach the top. Consequently. SKILLS A company’s skills can includes hard assets such as financial strengths and dominant market share.

SHARED VALUES/SUPER ORDINATE GOALS ICICI Bank has constantly focused on building shareholder value as its primary objective. ICICI Bank constantly endeavors to create products that best met the specific needs of its clients and investors. leverage technology. long-term value proposition.Pondicherry University 68 . ICICI Bank also seeks to deliver these Christ College. In addition. The key elements of their strategy have been to capitalize on new business opportunities. establish robust systems and processes and develop their human capital. It is ICICI Bank’s firm belief that its existence and development are closely interlinked with its ability to serve both retail and corporate clients well. build a strong brand and distribution capability. to developing a sustainable. innovation and stability. 7. this belief has evolved into its corporate philosophy of growth. ethics and financial expertise. They believe these elements are essential enablers of future growth. The Bank as an organization has been built on the principles of professionalism. Their approach to shareholder value creation has extended beyond delivering near-term financial results. Over the years.[Type text] Interpersonal Effectiveness Analytical Thinking Innovation & Team Effectiveness ICICI Bank Ltd has played an important role in setting up and supporting various programs imparting management education.

DESIGN OF THE STUDY RESEARCH DESIGN TOPIC: “ANALYSIS OF FINANCIAL PERFORMANCE OF ICICI BANK LIMITED” INTRODUCTION: A study on Financial Performance of ICICI Bank limited is under taken In order to know the financial position. The goal is to ensure that dealing with ICICI Bank is safe. The Annual Reports of the company are the primary data for the report. Ratio analysis is the tools used as a yardstick for evaluating the financial condition and performance of business firm. simple and efficient. It therefore. sets for itself high standards of service and constantly strives to improve upon them. Christ College. SCOPE OF STUDY: The Study is totally confined to ICICI Bank.Pondicherry University 69 .[Type text] products effectively and efficiently. The financial information regarding balance sheet items are based on the balance sheet figures on the P&L account figures. liquidity position of the bank and to know the strength & weakness of the bank & to assess the profitability of the bank.

Pondicherry University 70 .  To compare the ratios of the various years. SECONDARY DATA: Past records  Annual reports of the company  Induction material provided by the co.  To know the strength and weakness of the ICICI Bank Limited. Christ College.[Type text] The annual reports of the past five years consisting of P&L Account and Balance Sheet are analyzed and interpreted to arrive at the ratios. RESEARCH METHODOLOGY For the purpose of preparing the report the necessary information collected are divided into two heads that is primary and secondary data.  To find long term and short term liquidity position of ICICI Bank Limited. The ratios belonging to different groups are calculated and the trend of each ratio over the years is worked out.  To assess the profitability of the ICICI bank Limited. PLAN OF THE STUDY: The financial statement analysis and interpretation is used to study the performance of the company. Graphs are drawn for a better understanding of the concepts and theories. OBEJECTIVES OF THE STUDY:  To study the financial position of the ICICI Bank Limited.

THEORETICAL BACKGROUND OF THE STUDY FINANCE AND RELATED CONCEPTS: Meaning of Finance: Finance is the support to any business in terms of money or money’s worth. Definition of Business Finance: Christ College.[Type text]  Company’s publications  Internet Analytical tools used:  Ratios  Income Statement  Balance Sheet LIMITATIONS:  Some data are confidential to the bank which was not possible to be used in the project.  Ratios are generally calculated on past financial statement and thus forecast for the future is based on past data. Finance includes determining what has to be paid for raising the money on the best terms available and utilizing the available funds in the best possible way. It is the lifeblood of the economy.Pondicherry University 71 .

controlling and administering of funds used in business” – Guttmann and Dongall. Chart-6 Christ College. Sources of Finance: • Short-term requirements are required for meeting working capital needs usually needed for a period within one year. usually needed for a period exceeding one year.[Type text] “The activity concerned with planning.Pondicherry University 72 . raising. • Long-term requirements are required to a great extent for meeting fixed capital requirements.

Pondicherry University 73 . 3) Dividend Policy Decision. Christ College. • • Capital Budgeting Working Capital Management 2) Financing Decision.[Type text] SOURCES OF FINANCE According to Period According to Ownership According to Source of Generation Long Term Short term Own Capital Borrowed Capital Internal Sources Retained Earnings Depreciation Fund External Sources Securities Loans Shares Debentures Long term loans Public Deposits Trade Creditors Advance from commercial Customer Shares Capital Retained Earnings Surplus Debenture Public Deposit Loans Functions of Finance: 1) Investment Decision.

usually one year. Analysis of Financial Statement Interpretation: By Myer: “Financial Statements’ analysis is largely a study of relationship among the various financial factors in a business as disclosed by a single set of statements and a study of the trend if these factors as shown in a series of statements” By Kennedy & Meaullar: “The analysis and interpretation of financial statements are an attempt to determine the significance and meaning of the financial statements data so that a forecast may be made of the prospects for future earnings.Pondicherry University 74 .[Type text] Financial Statements: They refer to two statements. Tools of financial analysis: 1. ability to pay interest and debt maturities and profitability of a sound dividend policy”. Common Size Statement Analysis 3. Comparative Statements Analysis 2. Trend-Percentage Analysis Christ College. Position statement or Balance Sheet in order to known its financial position as on a particular point of time. which are prepared by an organization at the end of the year: Income statement or Profit and Loss Account to know the profit earned and loss sub stained during a specific period.

Funds Flow Statement Analysis Limitations of financial statement analysis: • • • • • • • • Historical nature of financial statements. Financial Analysis becomes a need. Price level changes reduce validity of analysis. Ratio Analysis 5.[Type text] 4.Pondicherry University 75 . Non substitute for judgment Reliability of figures Single year analysis is not of much value and useful Results may have different interpretations Change in accounting methods Pitfalls in inter firm comparison. a requirement due to the above significance it provides to the people involved. Christ College.

not when it is considered in isolation.[Type text] DATA ANALYSIS AND INTERPRETATION Ratio analysis. ratio technique or ratio accounting is an important quantitative technique used for the analysis and interpretation of financial statements. but only when it is compared in the light of sales or capital employed in the business. but the firm’s performance can be said to be good or bad only when the net profit figure is related top the firm’s investment. Christ College. For instance a Rs.Pondicherry University 76 . Before going to study about the financial ratio one should know the meaning of the “Ratio”. In fact it is a powerful tool of financial position and performance of the firm. if they are considered independently (i. But the financial figures reported in financial statement do not provide a meaningful understanding of the performance and financial position of a firm. A ratio is defined as the indicated quotient of two mathematical expressions and as “The relationship between two or more things”. classified and arranged) in such a way that one item can be compared with other items. The items or figures found in the financial statements will not be of much use. So if the items appearing in the financial statements are to be really meaningful and useful to a financial analysis. no doubt. Financial statements. For instance the item of the net profit will be meaningful. 5 Crore net profit figure may look impressive. contain the items relating to the profit or loss and the financial position of a concern.e. they should be analyzed (i.e. individually) the accounting figure conveys meaning when it is related to some other relive and information.

comparing the computed accounting ratios. ii. vi.[Type text] Ratio analysis or ratio technique is one of the tools available to a financial analyst for the financial statements. Objectives of Ratio analysis: i. As the investors are interested on their return on investment so they use this technique to calculate their return there by get attracted by the companies. With those of the previous years or with those of others concerns engaged in similar line of activities or with those of standard or ideal ratios. iii. Analysis of ratios reflect the firms efficiency in utilizing its assets Ratio analysis measures over all performance and effectiveness of the firm Ratio analysis will determine in future the financial strength. This through ratio analysis. ii.Pondicherry University . MEANING OF RATIO ANALYSIS: Ratio analysis is the technique of calculating a number of accounting ratios from the data or figures in the financial statements. iv. v. Ratio analysis measure the firms ability to meet current obligation Ratio analysis show the proportions of debt and equity in financing the firms assets iii. To evaluate the profitability of the firm To Evaluate & measure the financial strength of the firm To highlight the liquidity and profitability of the firm 77 Christ College. and interpreting the comparison. Ratio analysis technique attracts the investors. Functions of ratio analysis: The Functions of ratio analysis are as follows i.

Another limitation of the ratio analysis is that it will not take into account nonaccounting data for computation. Limitations of ratio analysis 1. Every firm adopts its own accounting procedures and practices. monitor the performance and help plan forward. To know whether the firm is in a position to meet its current obligation To measure the firms’ performance with the other firms that is inter firm comparison. v. One of the most fruitful areas for the use of traditional financial ratios seems to be that of predicting company failures. The performance of an organization cannot be measured only on the basis of the accounting data. Ratio analysis helps the management to diagnose the situation. Rations are a tool. A ratio analysis involves a study of the total financial picture. 2. By basing conclusion upon a thorough understanding of the importance of each ratio. v. iv. Lee observed that the process of producing financial ratios is essentially concerned with the identification of the significant accounting data relationships given the decision maker insights into the company that is assured. It is therefore not advisable to compare the ratios of the firm with those of another firm. ii. which enables management to analyses business situation and to monitor their performance as well as that of their competitors.[Type text] iv.Pondicherry University 78 . the analyst can recommend and indicate positive action with confidence. Hence these accounting procedures and practices differ from one firm to another. Advantages of Ratio Analysis: i. Christ College. iii.

810. to be treated with great caution. 4. Ratio can never be the substitute of raw figures.11% but next it was reduced to 4.30 65. have.86 2005-06 794400 4816931 16.Pondicherry University 79 .11 2004-05 155892 3208511 4. 6. Initially it was in 2003-04is 5. They are not useful to well-established companies as they do not depend upon external sources of finance. Such ratios may not be relevant for future forecasting because of change in time and price levels. Ratios are computed on the past data. raw figures should also be considered. some or all of which are known and factual and. 5. Moreover. therefore. Ratios are not universally applicable. AVERAGE COST OF FUNDS EMPLOYED = Total interest paid X 100 Total deposit received TABLE –3 (In Lakhs) 2006-07 2007-08 701.[Type text] 3. BANKING SPECIFIC RATIO 1.then in the year 2004-05 its 16.86.83 Years Total interest paid Total deposit received Average cost of fund employed % INFERENCE: 2003-04 83767 1637821 5.49% in the year 2006-07 it was again reduced to 10.49 According to analysis it is seen that over the year from 2003 to 2008 the interest rate is fluctuating.30% the reduction in the last year is most attributable to the managerial efficiency by Christ College. Statements are only like interim reports.525 6570890 6.858 9981877 10. Financial standard data are not exact. many management ratios are based on data. At the time of interpretation.

[Type text] the bank.86.49.3 2006-07 2007-08 Average cost of fund employed % Figure-2 Status of Interest paid & Deposits recd 12000000 10000000 8000000 6000000 4000000 2000000 0 2003-04 2004-05 2005-06 2006-07 2007-08 Total interest paid Total deposit received Christ College. FIGURE – 1 Average cost of fund employed % 70 60 50 40 30 20 10 65.83 according to above figure it is a healthy sign for the bank.11 0 2003-04 4.Pondicherry University 80 . 10.83 5.49 2005-06 10.11. This will increase the profitability of the bank. On the other hand the total deposit received was positive from2004 to 2008 it is not a good sign according to the analysis.30 and 65.e. Overall the average cost of fund employed is very fluctuating starting from 2003-04 to 2007-08 i. 5.86 2004-05 16. 4. 16.

Figure-3 Credit Deposit Ratio 160 140 120 100 80 60 40 20 0 2003-04 2004-05 2005-06 2006-07 2007-08 2003-04 2004-05 2005-06 2006-07 2007-08 703146 4703487 5327941 6.23 respectively) but has not matched by increase in advances which are as follows from 2004 to 2008 (14.05.209.32 and 99. 88. The following chart justifies the above inference. Finally we can notice that the credit deposit ratio is as follows in the following year 2004 to 2008 i.28.Pondicherry University 81 . CREDIT DEPOSIT RATIO: =Loans & Advances X 100 Deposits Table-4 Years Loans and advances Total deposit received Average INFERENCE: According to the data.72. 70. 29. though there is an increase in deposits in all the years’ i. 121.552 9140515 1637821 3208511 4816931 6.93 146.810. 85.858 9981877 42.e. from 2003-04 to 2007-08 (51.61. So we can conclude that the funds that have been raised by the banks are not utilized to desired level.53. 132.61 91.57 Average Christ College.[Type text] 2.29.56 which shows there is a decline in the percentage of increase from last one year.95.93). 66.e.80 and 67. and 68.59 110.17 91.

Since the Credit Capital Ratio is first two years increasing (65.93).25) but later it is decreasing it is not healthy tom the bank.640 1.85 and 67.) and decline in 2005-06 and 2006-07 (85.11 X 100 Christ College.35 (In Lakhs) 2006-07 2007-08 6.775 64. CREDIT CAPITAL RATIO = Advances Equity capital TABLE-5 Years Advances Equity Capital Times INFERENCE: The advances made by the bank were high in first 2 years i.25 84.27 resp.33 to 88.209.Pondicherry University 82 . 2003-04 703146 22036 31. Advances & Deposits 12000000 10000000 8000000 6000000 4000000 2000000 0 2003-04 2004-05 2005-06 2006-07 2007-08 Loans and advances Total deposit received 3.552 91.405. 88.15 96.84 2005-06 5327941 96266 55.2003-04 & 2004-05 (14.91 2004-05 4703487 96303 48.086.e.[Type text] Figure-4 Status of Loans.94.

Pondicherry University 83 .25 Times 48.13 2005-06 5327941 96266 632065 728331 7.209.74 Christ College.996 7.[Type text] FIGURE-5 Credit Capacity Ratio 90 80 70 60 50 40 30 20 10 0 84.35 64.552 91.15 96.289.73 1.32 2006-07 2007-08 6.640 108677 739.416 1181319 836055. CREDIT NETWORTH RATIO = Advances X 100 Net worth TABLE- 2003-04 Advances 703146 Capital 22036 Reserves & Surplus 109226 Share holders fund 131262 Times 5.91 2003-04 2004-05 2005-06 2006-07 2007-08 Times Years FIGURE-6 Advances & Equity Capital 1200000 Amounts 1000000 800000 600000 400000 200000 0 2003-04 2004-05 2005-06 Equity Capital 2006-07 2007-08 4.36 Years 2004-05 4703487 96303 563554 659857 7.43 7.84 31.405.11 55.

7.43 and 7.32. 68.e. Since the Credit Net worth Ratio is increasing from starting to end which will help the bank to grow at higher rate.03%) and then there was a negative growth of -0. 7.Pondicherry University 84 . 7.26 and decline in 2005-06 i.13.[Type text] INFERENCE: According to analysis the advances made by the bank were high in first two years in 2004 & 2005 i.e.The capital of the bank was high in 2004-05 (337. 5.74 respectively.07 and also increased in 2008 (85.39%. FIGURE-7 Status of Advances and Shareholders Fund 1400000 1200000 1000000 800000 600000 400000 200000 0 2003-04 2004-05 Advances 2005-06 2006-07 2007-08 Amount Share Holders Fund Christ College. 2. 429.67.e.36. Reserve & Surplus of the bank was increasing from 109226 IN 2003-04 to 1181319 Lakhs (2007-08) The Credit Net worth Ratio as calculated from the table shows that there was increase in beginning to end 2003-04 to 2007-08 i.85%).04% and then in 2004-05 it managed at lost of 0.

Savings bank deposits CL & provisions Times 2003-04 703146 101297 262186 188064 551547 1.07 and also increased in 2008 (85.Pondicherry University 85 .e.338 2144073 2453958 2859952 2.67.18 1620758 1705693 1.26 and decline in 2006-07 i.17 2. Christ College. Demand deposits B.552 2007-08 9140515 2139616 954524 1139182 4233322 2.949 273615 368944 521.17 INFERENCE: According to analysis the advances made by the bank were high in first two years in 2005 & 2006 i.19 2.e.27 2004-05 4703487 2005-06 5327941 2006-07 6.209.2.36 7.85%). CREDIT TO CURRENT LIABILITIES AND PROVISIONS = Advances X 100 CL & Provisions TABLE-7 (In Lakhs) Years Advances Other liabilities A. 429.13 7.32 7.801. 68.[Type text] FIGURE-8 Credit Netwoth Ratio 10 Ratio 8 6 4 2 0 2003-04 2004-05 2005-06 YEA RS Tim es 2006-07 2007-08 5.74 5.43 7.665 249700 379321 536.

5 1 0.5 2 1.e.54% in the last year.18 and remain stagnant in next year also that show there was no change in credit and current liabilities & provision.36 times in the beginning and was 2.31 to 288.17 2.45 in 2006 and then it increased by 16.18 Ratio 2003-04 2004-05 2005-06 2006-07 2007-08 Years Times Christ College.5 0 2.74 respectively and then it decline by 14.19 1. By the table we can conclude that the credit to current liabilities & provisions ratio 1. 105.19 in 2005-06 and then declined 2.17 2.Pondicherry University 86 .[Type text] On other hand current liabilities were increasing in first two years 2005&2006 i.27 2. It is the good sign to the bank. FIGURE-9 Status of A dvances & CL & Provision 10000000 8000000 6000000 4000000 2000000 0 200304 200405 200506 Years Adv ances C & prov L isions Amount 200607 200708 FIGURE-10 Credit & Provision Ratio 2.

82 10.90 INFERENCE: The advances by the bank was in increasing mode from 2003-04 (7908738 Lakhs) to 2007-08 (72907461 Lakhs) and the deposit to the bank were also increased form 2003-04 (1570690) to 2007-08 (3171019).90) and ended of at 10. The deposit credit ratio was low in 2005-06 (32.92 Status of Deposits & Credits 100000000 80000000 60000000 40000000 20000000 0 Deposit Credit (advances) Amount Christ College. DEPOSIT CREDIT RATIO = Deposit X 100 Credit (Advances) TABLE-8 2003-04 Deposit 1637821 Credit (advances) 1842397 Credit ratio 88.90 (In Lakhs) 2005-06 2006-07 2007-08 4816931 6.[Type text] 6.405.497.858 9.82). FIGURE-11 Years 2004-05 3208511 9751135 32.92% in 2007-08 but it was lower than the 2006-07 (36.877 9952866 18.981. Since the advances by the bank were lower than the deposit in 2007-08 which shows the fund have not been utilize properly.151 48.690 91.Pondicherry University 87 .40 36.810.

68 in 2004 and then it is increasing gradually from 2004 to 2008 as 3331.810. 2003-04 1637821 22036 74.68.48 91.65 and 9184.32 (In Lakhs) 2005-06 2006-07 2007-08 4816931 6.77. which is not a good sign according to the analysis.04 70.85 Christ College.858 9981877 96266 96.23% in 2008.Pondicherry University 88 .82 10.4 36.[Type text] Figure-12 Credit ratio 100 80 60 4088.92 2005-06 Years 2006-07 2007-08 Ratio 7.72% to 68. 7047. 5003.47%) and then there was a declaimed to 3331.32 2004-05 3208511 96303 33.9 20 0 2003-04 Credit ratio 32. On the other hand the total deposit received was positive from 2004 to 2007 and later on it declined from 70.9 2004-05 48.90 respectively. DEPOSIT CAPITAL RATIO = Deposit Equity capital X 100 TABLE-9 Years Deposit Equity Capital Times INFERENCE: The equity capital of the bank was high in 2003-04 (7432.640 108677 50.

By this ratio we can conclude that the bank has satisfactory growth in deposit comparable to capital.32% to 91.48 Years Times 89 .[Type text] Deposit capital ratio started from 74.32 50.32 70.85%.Pondicherry University Amount 6000000 4000000 2000000 0 2003-04 2004-05 Equity Capital 2005-06 2006-07 2007-08 Deposit Years FIGURE-14 Deposit to Capital Ratio 100 80 60 40 20 0 2003-04 2004-05 2005-06 2006-07 2007-08 91.04 33.32).32% in 2005 and then it is gradually increasing from 33. There was a low Deposit Capital Ratio of 5 years in 2004 to 2005 (33.85 74.32% in 2004 then it was declaimed to 33. FIGURE-13 Status of Deposits & Equity 10000000 8000000 Ratio Christ College.

858 72.5% & 25% respectively.86 5801376 9981877 58.07 RBI requires commercial banks to maintain CRR (Cash reserve ratio) and SLR (Statutory Liquidity Ratio) at the following rates i.Pondicherry University 90 . 4.286 5048735 503.881 658507 29.[Type text] 8.559 63449 154.274.43 2004-05 3589108 152857 281821 143852 4167638 3208511 129.586 30685 4962312 6. Therefore if 30% of the funds kept in investments that will satisfy the RBI requirements.e. INVESTMENT TO DEPOSIT RATIO = Investment + Balance with bank Deposits Table-10 (In lakhs) 2006-07 2007-08 4.810.89 2005-06 3546230 454967 81058 15484 4097739 4816931 85. Figure-15 Investment to Deposit Ratio 150 120 Ratio % 90 60 30 0 2003-04 Ratio in % 2004-05 2005-06 2006-07 2007-08 Years Christ College.12 X 100 Years Investments Bal with RBI Bal with banks in India Bal with banks o/s India Investment + balance with bank Deposits Ratio in % INFERENCE: 2003-04 818686 113092 54284 3607 989669 1637821 60.

48 4.15 7. 2003-04 1637821 2004-05 3208511 2005-06 4816931 96266 632065 728331 6.74 Christ College.61 2006-07 6.[Type text] Figure-16 S tatus o Investm &D o f ent ep sits 1 0 0 00 200 Amount 1 0 0 00 000 8000 000 6000 000 4000 000 2000 000 0 2 0 -0 03 4 20 5 0 4-0 2 0 -0 05 6 D p sits Ye o ears 2 0 -0 06 7 20 7 8 0 -0 In e e ts v stm n 9. DEPOSITS TO NETWORTH RATIO = Deposit X 100 Net Worth TABLE-11 (In lakhs) Years Deposit Share holders fund Capital Reserves & Surplus Total Times INFERENCE: Deposit to the bank were also increased from 1637821 Lakhs (2003-04) to 9981877 Lakhs (2007-08) and shareholders fund has increased from the last five years and recorded the highest of 1289996Lakhs in 2007-08.810.04% in 2006 and then in 200607 and 2007-08 it was increased.858 2007-08 9981877 22036 96303 109226 563554 131262 659857 12.416 1181319 836056 1289996 8.86 96.Pondicherry University 91 . The capital of the bank was also increasing 2003-04 to 2004-05 is respectively 22036 and 96303 then there was a negative growth of -0.640 108677 739.

Figure-17 Deposits & Shareholders Fund 12000000 10000000 Amount 8000000 6000000 4000000 2000000 0 2003-04 2004-05 2005-06 Years 2006-07 2007-08 Deposit Share holders fund / Capital Figure-18 Deposits to Networth Ratio 14 12 10 8 6 4 2 0 2003-04 2004-05 2005-06 2006-07 2007-08 Times Years Christ College. Then it is increased in two years and last year is again declaimed.[Type text] Reserve and Surplus of the bank was increasing from 109226 Lakhs (2003-04) to 1181319 Lakhs (2007-08). The Deposit to Net worth Ratio as calculated from the table shows that there was increase in the beginning for 2003-04 but in 2003-04 it was decreased.Pondicherry University Ratio 92 .

[Type text] 10. 0.77 0.55 0.241 47412 6.77 but in the year 2007 to 2008 the ratio has been decreased to 0.47 Christ College. which indicates high efficiency.55 and 0. In the year 2004 to 2005 the ratio was higher which indicates less efficiency that is 0.858 9981877 0.5 and 0.62 0.70 2006-07 2007-08 37.Pondicherry University 93 .CASH BALANCE TO TOTAL DEPOSIT RATIO = Cash balance X 100 Deposits TABLE-12 (In Lakhs) Years Cash balance Total deposits % INFERENCE: According to the data. 2003-04 2004-05 2005-06 10074 24590 33647 1637821 3208511 4816931 0.47 respectively. Efficiency increases with the decrease in cash balance to total deposit ratio.70.77.810. 0.62.And the total deposit is also increase from 2003-04 to 2007-08 is from 1637821 to 9981877 respectively so by considering the increase (decrease) of both cash balance and total deposit received we can calculated the cash balance to total deposit ratio from 2003-04 to 2007-08 is 0. Cash balance from 2003-04 to 2007-08 is increasing year to year from 10074 to 47412. 0.47.

[Type text] Figure-19 Status of Cash Balance & Deposits 10000000 8000000 Percentage Christ College.4 0.47 2003-04 2004-05 2005-06 2006-07 2007-08 Years 94 .8 0.2 0 6000000 4000000 2000000 0 2003-04 2004-05 2005-06 2006-07 2007-08 Years Cash balance Total deposits Figure-20 Cash Balance to total Deposit Ratio % 0.55 0.6 0.62 0.7 0.77 0.Pondicherry University Amount 1 0.

98 0.889 2.820 551.958 2.665 1.402 752.139.064 1.297 1.453.366 365.346 1.57 INFERENCE: The actual current ratio ascertained with the help of the relevant financial figures has to be compared with the ideal or standard ratio of 2:1 that means the current asset are fixed at two times the current liabilities the idea behind this fixation is to leave a margin of safety to cover any fall.091 54.117 (In lakhs) 2006-07 2007-08 847.100. But current liabilities were increasing by year to year considering current asset and current liabilities the current ratio calculated is in decreasing trend for the last 5 years and it was stagnant this year to 0.952 4.949 2.72 0.828 2.700 379.693 1.704 497.200 188. Cash credits.615 368. o/d & loans 9.139.369 108. In this case of ICICI Bank the current asset from the past 5 years is increasing. Savings bank deposits Total Current Liabilities Times 2003-04 359.418. Bill purchase & discounted b.674 2.801.019. Demand deposits B.764 313.278.[Type text] GENERAL RATIOS 11.251 415.899 43.126 2005-06 648.186 273.705.144.412 240.510 2004-05 1. In the value of current asset and also to leave sufficient working capital after the payment of current liabilities.616 262.758.CURRENT RATIO = Current Asset Current liabilities TABLE-13 Years Current assets a.049.371 101.344 786.944 521.620.321 536.280.338 1.772 51.006 247.636 1.85 0.72 0.758 1.57.other Assets Total Current Assets Current liabilities Other liabilities A. Christ College.547 2.531.Pondicherry University 95 .052 1.635 165.139.073 2.064 249.859.260 123.344 879.

Figure-21 Status of Current Assets & Liabilities 4.500.000 4.000 3.000.000 1.5 1 0.000 500.[Type text] The current ratio falls bellow the current ideal ratio however the firm is not in a good position to meet its current obligations out of its current asset.5 0 2003-04 2004-05 2005-06 Times 2006-07 2007-08 Christ College.000 3.000.500.500.000 2.000 1.500.000 0 2003-04 2004-05 2005-06 2006-07 2007-08 Total Current Assets Total Current Liabilities Figure-22 Current Ratio 2 1.000.000.Pondicherry University 96 .000 2.

99.38.e.54 Christ College. 52. But in the year 2006-07 it decreased by 35. Total percentage increased in shareholders fund is 627.31%. For the year 2005 it 2003-04 16110 2004-05 25830 2005-06 120618 2006-07 163.56 19. 60.711 2007-08 200520 22036 96303 109226 563554 131262 659857 12.[Type text] 12. Investment represents pool of funds supplied by shareholders and lenders. The conventional approach of calculating ROI is to divide profits by equity plus Reserve.99% to 402.58 15. It is the percentage of deposits lend as advances it reveals that if it is too high than it has a high risk involved in it and if it is too low then it has a low profitability involved in it. RETURN ON INVESTMENT RATIO = Profits X 100 Shareholders fund TABLE-14 Years Profits Share holders fund Capital Reserves & Surplus Sub total PERCENTAGE INFERENCE: The term investment here refers to total assets or net assets. Finally we can conclude from the calculations from the above table that for the first two years viz. In banking profits represents the interest from the lenders while equity plus reserves are the net assets of the bank.79 in subsequent years.Pondicherry University 97 .416 1181310 728331 836056 1289987 16. On the other hand shareholders fund also shows an increasing trend from the year2003 to 2005 it sharply increased 14.70% and dipped down by 10.27 3. The above table show an increase in profits from 2004 to 2006 i.73% and again it is increased last year. 14.640 108677 632065 739.91 96266 96.27.34 and 366.97 respectively.2003-04 Return on Investment ratios is 12.

Pondicherry University 98 .56 12.58 respectively. And again last year it is decreased to 15.91%.56 to 19.[Type text] sharply decreased to 3. OPERATING OVERHEADS TO TOTAL INCOME RATIO Christ College. For the year 2006 & 2007 percentage of ratios increased from 16.54 this shows high risk and high profitability.91 19. Figure-23 Status of Profit & Shareholders Fund 1400000 1200000 1000000 800000 600000 400000 200000 0 2003-04 2004-05 2005-06 2006-07 2007-08 Profits Total Shareholders Fund Figure-24 R tu o In e tm n R tio e rn n v s e t a 25 20 15 10 5 0 2003-0 4 2004-05 2005-06 PR ET G E CNA E 2006-07 2007-08 16.27 3.58 15. Thus we can say that profitability is low for the corresponding period.54 13.

896 1282604 21.86% in 2003-04 and ended at 25. which was higher than the last year of 21. I.72 Figure-25 Christ College.81% which is a very good mark for the bank. At the same time the total income of the bank was good at the end of 2007-08 at (4.[Type text] = Operating Expenses X 100 Total Income TABLE-15 Years Operating exp.72% in 2007-08 with lot of fluctuation in between this figure. 2003-04 33429 146214 22.06 (In Lakhs) 2006-07 2007-08 257. By the above table the operating ratio which was fluctuating and started at 22. shows that the bank showed improve on its activities.50 25.72%. Total income % INFERENCE: The operating expenses calculated form the profit and loss account was initially high and latter on at the end of 2007-08 it was pretty low 32. 25.195.86 2004-05 62258 272659 22.50% (2006-07).123 329915 1.95) which shows the growth in the last year.Pondicherry University 99 .83 2005-06 201169 1252688 16.e.

Total income Figure-26 Operating Ratio 30 20 10 0 2003-04 2004-05 2005-06 2006-07 % 2007-08 22.[Type text] Status of Operating Exp & Income 1400000 1200000 1000000 800000 600000 400000 200000 0 Percentage % Christ College.06 21.83 16.5 25.72 100 .Pondicherry University In lakhs 2003-04 2004-05 2005-06 2006-07 2007-08 Operating exp.86 22.

X 100 Shareholders fund Table-16 (In Lakhs) Years Operating income Operating exp.094 Lakhs in 2007-08.319 836.226 131.857 -0.Shareholders fund has increased form the last 5 years and recorded the highest of 2.429 -11.90 0.001 Lakhs in 2003-04 and ended it 341. Net Operating Income Share holders fund Capital Reserves & Surplus RATIO INFERENCE: The operating Income of the bank moved from 22.[Type text] 14. which is not a good sign for the prosperous growth of bank.428 22. Christ College.303 563.094 5.181.Pondicherry University 101 .75 2006-07 2007-08 306.416 1.466 62.492 341.71% in 2003-04 and managed to end of with 0.775 739.268.123 329.258 -4.001 33.614 Lakhs in 2007-08.883 201.056 2.640 1.262 -8. OPERATING RESULTS RATIO =Operating Income – Operating exps.554 659.169 114.268.369 11.065 728.714 96.331 15.792 96.086.71 2004-5 57.699 96.90%) by seeing this there was a drop of 80% from last year.266 632. This was VERY lesser than the previous year 2006-07 (5.036 109. 2003-04 22.614 257.52% in 2007-08.73 2005-06 315.52 From the table the operating result was negative -8.915 49.

000 2003-04 2004-5 2005-06 2006-07 2007-08 Percentage % Christ College.000 0 -500.75 RATIO 102 .73 2004-5 2005-06 5.000 2.000 1.000.500.[Type text] Figure-27 Status of Net Operating Income & Shareholders fund 2.9 0.000.Pondicherry University Amt in Lakhs Net Operating Income Share holders fund Figure-28 Operating Ratio 20 15 10 5 0 -5 -10 2003-04 -8.71 -0.000 500.000 1.52 2006-07 2007-08 15.500.

282.65 From the above table we can clearly that the income of the bank is increasing from 2003-04 to 2004-05 i.73 2006-07 1. INCOME TO ASSET RATIO = Income X 100 Asset TABLE-17 lacks) Years Income Assets PERCENTAGE INFERENCE: 2003-04 146.992 2.195.896 12.522. Christ College.888 9.65%.973.659 10.[Type text] 15.because assets are increase in more. The following chart justifies the above inference.47 and again increase to107.41 2004-05 272.410.252.25 in 2006-07. By considering the above data the income to asset ratio calculated shows that the trend was declining from 2003-04 to 2004-05 from 7.765.681.55 (In 2007-08 1.688 10.62 2005-06 1. This figure shows that the bank is in a good position.568 16.43 but is was decrease in year 2005-06 to 95.197 11.Pondicherry University 103 .e.659 7.62% and finally it ended at a lower as compare to previous year(9.55) to 7. 186.214 1.41% to 2.940 7.48 To 459.

000 14.000.000 8.000 4.[Type text] Figure-29 Status of Income & Assets 18.000 12.000 16.000.000.000 0 2003-04 2004-05 2005-06 2006-07 2007-08 Amt in Lakhs Income Assets Figure-30 Income to Asset Ratio 14 12 10 8 6 4 2 0 2003-04 Percentage % 2004-05 2005-06 2006-07 2007-08 PERCENTAGE Christ College.000.000 10.000.000.000.000 6.000.Pondicherry University 104 .000 2.000.

688 9.711 200.[Type text] 16. A higher net profit ratio indicates that the profitability of the concern is good. 9. The net profit should be capable for covering all the operating expenses and also should leave sufficient amount of profit to for the owners that has been fulfilled by the ICICI Bank performance.618 1.195.69 15. By considering this the net profit ratio calculating is 11. On the other hand a low net profit ratio indicates that the profitability of the enterprise is poor.47. NET PROFIT RATIO = Net Profit X 100 Total Income TABLE-18 (in lakhs) Years 2003-04 2004-05 Net profit 16.63 % which is the high net profit ratio and good to any business.63 INFERENCE: The net profit ratio indicates the quantum of profit available for the owners.43%.282. But it showed a negative growth in last year by (4.830 Total income 146.214 272.53).252.63 13. According to the table the net profit of ICICI Bank was remarkably good in all years but the total Income was good till 2006 at 359.69 and 15. The ratio was declined after 3 years but it made a come back in the 2004-2005 and was in a same increasing face and lastly made a record of 15.Pondicherry University 105 . 9.520 1.896 1.02 9.63 respectively for 2003-04 to 2007-08.63 2006-07 2007-08 163. Christ College.110 25.604 13.47 2005-06 120.02.659 RATIO 11.

000 0 2003-04 2004-05 Net profit 2005-06 2006-07 2007-08 Total income Figure-32 18 16 14 12 10 8 6 4 2 0 Net Profit Ratio 15.000.000 800.63 Percentage % 2003-04 2004-05 2005-06 RATIO 2006-07 2007-08 17.000 1.47 9.02 9.Pondicherry University 106 .200.63 13.400.[Type text] Figure-31 Status of Net profit & total Income Amt in lakhs 1.000 1.000 600.000 200.000 400.69 11. NET PROFIT TO NET ASSET RATIO Christ College.

422.422. Fixed Assets Net current assets Net assets % INFERENCE: 2003-04 16110 2004-05 25830 2005-06 120618 2006-07 163.726 1.889 403.935 1.[Type text] = Net Profit X 100 Net Asset TABLE-19 (In Lakhs) 2007-08 200.47 1.589.662.048.520 5.13 0.112 8.239 9.919 1.31 3.686 3.112 in 2003-04 and increased to 12.641 -695. Figure-33 Christ College.970.074 405.Pondicherry University 107 .735 7.31% in 2004-05 and managed to 1.824 38. The net asset of ICICI Bank was 1.Investments c.841 -810.807.227.520) which has increased.57 Years Net profit Net assets 6.69 Net profit from the analysis part shows that it was a very good path for the bank from 2003-04 (16110) to 2007-08 (200.266.278 8.934 467.803 129.108 97.69% in 2006-07 and then it was decreased to 1.230 4. The profitability ratio from the table was shows that it was very low 0.57 in 2007-08 because it has this year current assets 129.807.113 423.546.286 4.225.963 -43. Term loans 8.350 4.947 1.299 previous years it was negative.297.286 406.299 12.776 5.711 818.726 in 2007-08.274. which shows healthiness to the bank.793.

5 1.13 0.31 2004-05 1.Pondicherry University Percentage % 1.5 1 0.57 0 2003-04 2005-06 2006-07 2007-08 % FINDINGS 108 .69 1.[Type text] Status of Net Profit & Net Assets 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 2003-04 2004-05 2005-06 2006-07 2007-08 Net profit Net assets Figure-34 Net profit to Net asset Ratio 2 Christ College.47 1.

which drastically affect the companies profit margin. It is 5. this reflects the banks effective use of resources to contribute more towards profit and there by increase the value of shareholders. It increases from 0.83 % in 2006-07.11 % and increase to 65.  Investment to Deposit Ratio is also increasing tendency. The increased cash balance will provide liquidity but Lowers Company’s profitability as such cash balance kept idle which earn nothing.  The ICICI Bank is focusing on full utilization of the available sources without keeping any assets idle.86% (2006-07). The bank use deposits as well as other financial sources to provide for advances. Such investments are less risky than the usual advances paid by the bank.Pondicherry University 109 . The deposits of the bank are raised over the year and the advance also moving upward.55%.32% to 0.  Cash Balance to Total Deposit Ratio is raising tendency. So as to earn maximum profit these by contributing to the value of the company.50% (2003-04) to 72. but it brings low returns.[Type text]  Average Cost of Fund Employed Ratio is showing an upward trend due to increase in Total Interest payment and competition in 2003-04. It increases from 51. Christ College.  Income to Asset Ratio is moving upward.

 The bank is keeping the Cash Reserve Ratio at a higher than the minimum required rate with RBI. which bring a low return than other advances.[Type text]  Current Ratio is decreasing tendency.Pondicherry University 110 . The bank is following the aggressive financial policy by keeping its working capital low and even negative. The total assets of the company is enhancing which raised from 38.  The Return on Investment Ratio has enlarged by 155. It took a huge risk of short-term solvency. CONCLUSION Christ College. which reflects company’s effectiveness in using its funds.72%.803 lakes in 2007-08.113 lakes in 2003-04 to reach up to 403.63% to 0. which is unfair to the operation of the company even though it brings high return.45% in last 5 Years. It decreases from 2.  The bank is investing more on fixed assets of appreciating nature.  The Earning Capacity of the bank is increased over the years after a set back in the year 2004-05 bank moving upward by contributing more on profit.

procedures and policies. The aggressiveness shown by the bank in its financial operations helped it to maximize its earnings. SUGGESTIONS Christ College. Investments. Loans. Profits etc and all staff members actively Support and coordinate the activities.[Type text]  Various ratios have been analyzed and this helps to know credit analyses of the bank. it can be stated that the bank is bound to have very prosperous years to come in the future. The result of which is satisfactory solvency position increased operational expenses and increasing trend of profitability. company utilizes its available funds effectively.  The over all performance of ICICI Bank is satisfactory.  To conclude. Deposits.  The bank has been providing various useful services to the society through its favorable programs.Pondicherry University 111 .  The bank has made favorable progress in all fields viz.

as there is lack of ATM facilities in most of Taluk head quarters. Bank has to keep some liquid assets to strengthen its liquidity position. which are showing a slow raise after 2004-05.  The short-term solvency position of the bank is under threat.  Bank has to provide effective services to customers for maintaining and building the brand image that helps the banks to have a competitive edge even other banks.[Type text]  Bank has to take steps to cut down its cost of fund employed.  The portion of accrued interest in total current asset is increasing drastically. It is suggested to accelerate the interest collection process and then advance the same so as to increase the profitability. The negative current ratio must be brought nearly to the standards. Christ College.Pondicherry University 112 .  Bank can enter into the rural market by opening branches and ATM facility in Taluk head quarters.  Bank has to implement few new strategies to enlarge its turnovers.  Business expansion is needed. which is showing sharp fluctuations over the years necessary actions to be taken to cut down the operating expenses which is increasing. the bank can enter into the wide rural market where it has wide scope for business.

115.083.58 76.86 2.0 5 2.68 350.469.41 93.00 23.91.00 21.257.00 2.923.92 889.84 5.56 2.42 189.036.525.454.44.108.413.87.316.[Type text] ANNEXURE BALANCE SHEET (Rs crore) (Rs crore) Mar ' 08 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets.26 2.642.64 15.16 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Christ College.056.79 4.510.00 7.1 7 1.57 1.251.11.39 5.49 7.00 11.487.11 4.742.108.14 1.35 5.78 1.487.34 350.77 42.90 1.019.75 0.1 9 2.02 350.547.45 1.927.112.38 23.66 91.227.298.090.04 96.65.551.12.40 350.53 899.129.71 147.038.75 68.228.375.88 11.16 9.431. loans & advances Less : current liabilities & provisions 31.83 350.16 736.357.55.14 3.107.30.30 50.79 25.Pondicherry University 113 .85 3.895.61 4.980.173.16 99.20 1.639.20 616.718.99 42.94 71.813.00 45.033.396.61 18.818.394.968.99 21.85 38.987.65 1.3 4 6.

797.89 37.765.03.090.09 66.116.17 44.585.62 1.52 -8.114.771.15 -9.13 6130.Pondicherry University 114 .62 -14.9 9 8898.4 6 7367.38 Christ College.311.16 82.981.96 -10.920.280.78 80.24 1.67 1.9 1 11126.87 1.694.676.01.[Type text] Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 4.21 -11.34.4 1 8992.911.341.07.99.

52 11.457.22 3.29 632.98 2.88 522.128.31 17.73 4.89 590.02 3.78 3.75 1.35 5.838.30 759.73 5.46 3.82 5.358.793.335.28 -2.403.082.73 4.22 3.17 4.728.31 39.35 28.995.[Type text] PROFIT LOSS ACCOUNT (Rs crore) Mar ' 08 Income: Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 4.156.00 115.Pondicherry University 115 .058.10 2.24 578.46 737.517.63 4.33 106.29 840.570.157.96 9.90 1.305.50 1.92 4.587.12 65.60 23.616.07 3.22 135.00 2.51 0.10 1.95 7.43 2.269.51 16.092.597.778.36 2.557.50 16.706.78 448.276.79 3.66 901.13 17.227.53 2.67 3.07 2.96 90.611.862.772.60 6.39 1.71 1.679.78 2.32 10.447.45 623.45 3.078.735.56 309.750.650.194.20 2.248.741.58 5.63 1.349.18 4.43 23.08 2.17 153.69 8.92 28.532.55 22.102.41 601.08 1.49 0.31 2.25 2.61 4.467.50 544.946.55 28.112.10 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Christ College.110.537.12 2.00 1.25 6.70 149.83 11.73 16.484.17 556.94 466.007.95 984.727.540.60 84.05 0.85 65.005.

Pondicherry University 116 .icici.google.com Christ College.[Type text] BIBLIOGRAPHY BOOKS • • • Financial management by Prasanna Chandra Financial management by I M Pandey Corporate finance MAGAZINES • • Banker Financial risk WEBSITES • • www.com www.

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