Table of content Chapter no. PARTICULARS Acknowledgement Preface Introduction Of Banking a. Introduction of banking. b. History of banking in India c.

Banks in India d. Fact files of banks in India 2. e. Indian banking industry. Companys Profile a. Introduction to ICICI Bank b. ICICI Bank today c. Business profile... d. Board of directors e. Board committee. g. Technology used in ICICI Bank.. i. Awards 3. recognition Research Methodology a. Objective of study b. Importance of study. c. Meaning of research d. Research problem e. Research design... f. Data collection method g. Analysis and interpretation of data.. 4. h. Limitation of study.. Financial Analysis Page no. 3 4 6-18 7 8 11 17 18 19-55 21 27 28 29 30 32

1.

f. Business objective 31 h. Products and services... 34 and 54 56-62 58 58 59 59 60 61 62 62 63-92

a. Introduction topic. b. Method/Tools analysis.

of of

the 64 67 financial 73 75

c. Balance sheet of ICICI Bank.. Bank.. e. Financial analysis 1) Comparative . 2) Trend analysis. 3) Ratio analysis.. 5. Findings ,Suggestions

d. Profit and Loss Account of ICICI 76 statement 76 financial 79 80

statement

And 93-98

Conclusion. 6. Bibliography 99-100

Chapter 1 INTRODUCTION OF BANKING

INTRODUCTION OF BANKING
Definition Of Bank: Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits otherwise." -Banking Companies (Regulation) Act,1949 ORIGIN OF THE WORD BANK:The origin of the word bank is shrouded in mystery. According to one view point the Italian business house carrying on crude from of banking were called banchi bancheri" According to another viewpoint banking is derived from German word "Branck" which mean heap or mound. In England, the issue of paper money by the government was referred to as a raising a bank. ORIGIN OF BANKING : Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the benefit of money as a medium of exchange, the importance of banking was developed as it provides the safer place to store the money. This safe place ultimately evolved in to financial institutions that accepts deposits and make loans i.e., modern commercial banks. Banking system in India Without a sound and effective banking system in India it cannot have a healthy economy.The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. of

money from the public, repayable on demand or otherwise and withdraw by cheque, draft or

For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. HISTORY OF BANKING IN INDIA Banking in India has its origin as early or Vedic period. It is believed that the transitions from many lending to banking must have occurred even before Manu, the great Hindu furriest, who has devoted a section of his work to deposit and advances and laid down rules relating to the rate of interest. During the mogul period, the indigenous banker played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company it was the turn of agency house to carry on the banking business. The General Bank of India was the first joint stock bank to be established in the year 1786. The other which followed was the Bank of Hindustan and Bengal Bank. The Bank of Hindustan is reported to have continued till 1906. While other two failed in the meantime. In the first half of the 19th century the East India Company established there banks, The bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843. These three banks also known as the Presidency banks were the independent units and functioned well. These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India was established on 27th January, 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted SBI. The Reserve Bank of India (RBI) which is the Central bank was established in April, 1935 by passing Reserve bank of India act 1935. The Central office of RBI is in Mumbai and it controls all the other banks in the country. In the wake of Swadeshi Movement, number of banks with the Indian management were established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country were

nationalized and on 15th April 1980, 6 more commercial private sector banks were taken over by the government. The first bank in India, though conservative, was established in 1786. From 1786 till today,the journey of Indian Banking System can be segregated into three distinct phases. They areas mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III. Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders. Phase II Government took major steps in this Indian Banking Sector Reform after independence. In1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July,1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate BankingInstitutions in the Country: 1949: Enactment of Banking Regulation Act.

 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore. After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

BANKS IN INDIA
In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. All these details and many more is discussed over here. The banks and its relation with the customers, their mode of operation, the names of banks under different groups and other such useful informations are talked about. One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India.

BANKING STRUCTURE IN INDIA

SCHEDULED BANKS IN INDIA
(1) Scheduled Commercial Banks

Public Sector Banks

Private Banks

Sector Foreign In India (29)

Banks Regional Banks (95)

Rural

(26) Nationalized Bank Other Sector (IDBI) SBI And Its Associates Public Banks

(25) Old Private Banks New Private Banks

(2) Scheduled Cooperative Banks Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks

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Public Sector Banks Public sector banks are those banks which are owned by the Government. The Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also nationalized. Therefore in 1980 the number of nationalized bank 20. At present there are total 26 Public Sector Banks in India (As on 26-09-2009). Of these 19 are nationalised banks, 6(STATE BANK OF INDORE ALSO MERGED RECENTLY) belong to SBI & associates group and 1 bank (IDBI Bank) is classified as other public sector bank. Welfare is their primary objective. Nationalised banks Allahabad Bank Andhra Bank Bank Of Baroda Bank Of India Bank Of Maharastra Canara Bank Central Bank Of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank (State Bank of Saurastra merged with SBI in the year 2008 and State Bank of Indore In 2010) Bank Of IDBI (Industrial Development Bank India)Ltd. Of State Bank of Mysore Other Public Sector Banks State Bank of Hyderabad State Bank of India SBI & its Associates

State Bank of Patiala

State Bank of Travancore

State Bank of Bikaner And Jaipur

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Union Bank Of India United Bank Of India Vijaya Bank

Private Sector Banks

These banks are owned and run by the private sector. Various banks in the country such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in preparation to the share of the banks held by him. Private banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet another Private Bank of India was incorporated in the year 1930 Private sector banks have been subdivided into following 2 categories:-

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Old Private Sector Banks Bank of Rajasthan Ltd. Catholic Syrian Bank Ltd. City Union Bank Ltd. Dhanalakshmi Bank Ltd. Federal Bank Ltd. ING Vysya Bank Ltd. Jammu and Kashmir Bank Ltd. Karnataka Bank Ltd. Karur Vysya Bank Ltd. Lakshmi Vilas Bank Ltd. Nainital Bank Ltd. Ratnakar Bank Ltd. SBI Commercial and International Bank Ltd. South Indian Bank Ltd. Tamilnad Mercantile Bank Ltd. United Western Bank Ltd.

New Private Sector Banks Bank of Punjab Ltd. (since merged with Centurian Bank) Centurian Bank of Punjab (since merged with HDFC Bank) Development Credit Bank Ltd. HDFC Bank Ltd. ICICI Bank Ltd. IndusInd Bank Ltd. Kotak Mahindra Bank Ltd. Axis Bank (earlier UTI Bank) Yes Bank Ltd.

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Foreign Banks In India

14

 Bank Ltd Indonesia UFJ Bank

ABN AMRO Bank N.V. Abu Dhabi Commercial

HSBC

(Hongkong

&

Shanghai Banking Corporation) JPMorgan Chase Bank Krung Thai Bank Mashreq Bank Mizuho Corporate Bank Oman International Bank Shinhan Bank Socit Gnrale Sonali Bank Standard Chartered Bank State Bank of Mauritius

American Express Bank Antwerp Diamond Bank Arab Bangladesh Bank Bank International

Bank of America Bank of Bahrain & Kuwait Bank of Ceylon Bank of Nova Scotia Bank of Tokyo Mitsubishi Barclays Bank BNP Paribas Calyon Bank ChinaTrust Citibank DBS Bank Deutsche Bank Commercial

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Cooperative banks in India

The Cooperative bank is an important constituent of the Indian Financial System, judging by the role assigned to co operative, the expectations the co operative is supposed to fulfil, their number, and the number of offices the cooperative bank operate. Though the co operative movement originated in the West, but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks in India plays an important role even today in rural financing. The businessess of cooperative bank in the urban areas also has increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. Rural banks in India Rural banking in India started since the establishment of banking sector in India. Rural Banks in those days mainly focussed upon the agro sector. Regional rural banks in India penetrated every corner of the country and extended a helping hand in the growth process of the country. SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The total number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote rural areas. Apart from SBI, there are other few banks which functions for the development of the rural areas in India. Few of them are as follows.

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Haryana State Cooperative Apex Bank Limited The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays a vital role in rural banking in the economy of Haryana State and has been providing aids and financing farmers, rural artisans, agricultural labourers, entrepreneurs, etc. in the state and giving service to its depositors. NABARD National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India. It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture, small scale industries, cottage and village industries, handicrafts. It also finance rural crafts and other allied rural economic activities to promote integrated rural development. It helps in securing rural prosperity and its connected matters.

Sindhanur Urban Souharda Co-operative Bank Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the first of its kind in rural banks of India. The impressive story of its inception is interesting and inspiring for all the youth of this country. United Bank of India United Bank of India (UBI) also plays an important role in regional rural banks. It has expanded its branch network in a big way to actively participate in the developmental of the rural and semi-urban areas in conformity with the objectives of nationalisation.

Syndicate Bank Syndicate Bank was firmly rooted in rural India as rural banking and have a clear vision of

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future India by understanding the grassroot realities. Its progress has been abreast of the phase of progressive banking in India especially in rural banks.

Fact Files of Banks in India

The first Bank in India to be given an ISO certification. Canara Bank

The first Bank in Northern India to get ISO 9002 certification for their selected branches.

Punjab Bank

and

Sind

The first Indian Bank to have been started solely with Indian capital.

Punjab Bank

National

The first among the Private Sector Banks in Kerala to become Scheduled South Indian Bank Bank in 1946 under the RBI act.

Indias oldest,largest and the most successful commercial bank offering the State Bank of India widest possible rang of domestic,international and NRI products and services,through its vast network in India and overseas.

Indias second largest Private Sector Bank and is now the largest scheduled The Federal Bank commercial bank in India. Limited

Bank which started as Private Shareholders Banks,mostly European Imperial Bank of shareholders. India

The first Indian Bank to open a branch outside India in London in 1946 and Bank of India,

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the first to open a branch in continental Europe at Paris in 1974

founded in 1906 in Mumbai.

The oldest Public Sector Bank in India having branches all over India and Allahabad Bank serving the customers for the last 132 years.

The first Indian Commercial Bank which was wholly owned and managed by Central Indians. India

Bank

of

INDIAN BANKING INDUSTRY

The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middleclass, and technological innovations are all contributing to this growth. The countrys middle class accounts for over 320 million People. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion.

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The Indian banking Industry is in the middle of an IT revolution, Focusing on the expansion of retail and rural banking. Players are becoming increasingly customer -centric in their approach, which has resulted in innovative methods of offering new banking products and services. Banks are now realizing the importance of being a big playerand are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation.Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital, says Prathima Rajan, analyst in Celent's banking group and author of the report. The banking industry should focus on having a small number of large players that can compete globally rather than having a large number of fragmented players.

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Chapter 2 COMPANYS PROFILE

21

Type

Private BSE & NSE:ICICI, NYSE: IBN Industry Banking Insurance Capital Markets and allied industries Founded 1955 (as Industrial Credit and Investment Corporation of India) Headquarters ICICI Bank Ltd., ICICI Bank Towers, Bandra Kurla, Mumbai, India Key people K.V. Kamath,Chairman Chanda Kochhar, Managing Director & CEO Sandeep Bakhshi, Deputy Managing Director N.S. Kannan, Executive Director & CFO K. Ramkumar, Executive Director Sonjoy Chatterjee, Executive Director Products Loans, Credit Cards, Savings, Investment vehicles, Insurance etc. Revenue USD 15.06 billion Total assets USD 120.61 billion (at March 31, 2009.) Website www.icicibank.com

INTRODUCTION TO ICICI BANK

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 History Of ICICI 1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited. ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from international markets. 1956 : ICICI declared its first dividend of 3.5%. 1958 : Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd. 1960 : ICICI building at 163, Backbay Reclamation, inaugurated. 1961 : The first West German loan of DM 5 million from Kredianstalt obtained. 1967 : ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed. 1969 : The first two regional offices in Calcutta and Madras set up. 1972 : The second entity in India to set up merchant banking services. : Mr. H. T. Parekh appointed the third Chairman of ICICI. 1977 : ICICI sponsored the formation of Housing Development Finance Corporation. Managed its first equity public issue. 1978 : Mr. James Raj appointed the fourth Chairman of ICICI. 1979 : Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.

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1982 : 1982 : ICICI became the first ever Indian borrower to raise European Currency Units. : ICICI commences leasing business. 1984 : Mr. S. Nadkarni appointed the sixth Chairman of ICICI. 1985 : Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI. 1986 : ICICI became the first Indian institution to receive ADB Loans. : ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first professional credit rating agency. : ICICI promotes Shipping Credit and Investment Company of India Limited. : The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first public issue by any Indian entity in the Swiss Capital Market. 1987 : ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth Development Corporation (CDC), the first loan by CDC for financing projects in India. 1988 : Promoted TDICI - India's first venture capital company. 1993 : ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up. : ICICI Asset Management Company set up. 1994: ICICI established Banking Corporation as a banking subsidiary.formerly Industrial Credit and Investment Corporation of India. Later, ICICI Banking Corporation was renamed as 'ICICI Bank Limited'. ICICI founded a separate legal entity, ICICI Bank, to undertake normal banking operations - taking deposits, credit cards, car loans etc. 1996 : ICICI Ltd became the first company in the Indian financial sector to raise GDR. : SCICI merged with ICICI Ltd. : Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd 1997 : ICICI Ltd was the first intermediary to move away from single prime rate to three-tier prime rates structure and introduced yield-curve based pricing. : The name The Industrial Credit and Investment Corporation of India Ltd changed to ICICI Ltd. : ICICI Ltd announced the takeover of ITC Classic Finance.

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1998 : Introduced the new logo symbolizing a common corporate identity for the ICICI Group. : ICICI announced takeover of Anagram Finance. 1999 : ICICI launched retail finance - car loans, house loans and loans for consumer durables. : ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares. 2000 : ICICI Bank became the first commercial bank from India to list its stock on NYSE. 2001: ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. 2002 : The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking Operations, both wholesale and retail, have been integrated in a single entity. At the same time, ICICI started its international expansion by opening representative offices in New York and London. In India, ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it acquired Grindlays Bank. 2003 : The first Integrated Currency Management Centre launched in Pune. ; ICICI Bank announced the setting up of its first ever offshore branch in Singapore. ; The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai, launched. ; ICICI Banks representative office inaugurated in Dubai. ; Representative office set up in China. : ICICI Banks UK subsidiary launched. ; Indias first ever "Visa Mini Credit Card", a 43% smaller credit card in dimensions launched. ; ICICI Bank subsidiary set up in Canada. ; Temasek Holdings acquired 5.2% stake in ICICI Bank. ; ICICI Bank became the market leader in retail credit in India. In the UK it established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai.

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2004 : Max Money, a home loan product that offers the dual benefit of higher eligibility and affordability to a customer, introduced. : Mobile banking service in India launched in association with Reliance Infocomm. : Indias first multi-branded credit card with HPCL and Airtel launched. : Kisan Loan Card and innovative, low-cost ATMs in rural India launched. : ICICI Bank and CNBC TV 18 announced Indias first ever awards recognizing the achievements of SMEs, a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of Indian economy. : ICICI Bank opened its 500th branch in India. : ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions (MFIs). The MFI would undertake the promotional role of identifying, training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI. : ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday. : ICICI Bank introduced the concept of floating rate for home loans in India. At the same time, ICICI opened a representative office in Bangladesh to tap the extensive trade between that country, India and South Africa. 2005 : First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi. ; "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off. ; ICICI Bank and Visa jointly launched mChq a revolutionary credit card on the mobile phone. ; Private Banking Masters 2005, a nationwide Golf tournament for high networth clients of the private banking division launched. This event is the largest domestic invitation amateur golf event conducted in India. ; First Indian company to make a simultaneous equity offering of $1.8 billion in India, the United States and Japan. ; ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with about US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI established a branch in Dubai International Financial Centre and in Hong Kong.ICICI Bank became the largest bank in India in terms of its market capitalization. ; ICICI Bank became the first private entity in India to offer a discount to retail investors for its followup offer. 2006 : ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets. : ICICI Bank subsidiary set up in Russia. ; Introduced a new product 26

NRI smart save Deposits a unique fixed deposit scheme for nonresident Indians. : Representative offices opened in Thailand, Indonesia and Malaysia. ; ICICI Bank UK opened a branch in Antwerp, in Belgium ; ICICI Bank became the largest retail player in the market to introduce a biometric enabled smart card that allow banking transactions to be conducted on the field. A low-cost solution, this became an effective delivery option for ICICI Banks micro finance institution partners. ; Financial counseling centre Disha launched. Disha provides free credit counseling, financial planning and debt management services. ; Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh. 2007 : ICICI Banks USD 2 billion 3-tranche international bond offering was the largest bond offering by an Indian bank. ; ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in Maharashtra State, and which had 158 branches in Maharashtra and another 31 in Karnataka State. Sangli Bank had been founded in 1916 and was particularly strong in rural areas. With respect to the international sphere, ICICI also received permission from the government of Qatar to open a branch in Doha. Also, ICICI Bank Eurasia opened a second branch, this time in St. Petersburg. ; ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international markets through a follow-on public offer. ; ICICI Banks GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia. ; Launched Indias first ever jewellery card in association with jewelry major Gitanjali Group. ; ICICI Bank became the first bank in India to launch a premium credit card -- The Visa Signature Credit Card. ; Foundation stone laid for a regional hub in Gandhinagar, Gujarat. ; Introduced SME Toolkit, an online resource centre, to help small and medium enterprises start, finance and grow their business. ; ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement in Singapore. ; ICICI Bank became the first private bank in India to offer both floating and fixed rate on car loans, commercial vehicles loans, construction equipment loans and professional equipment loans. ; In a first of its kind, nation wide initiative to attract bright graduate students to pursue a career in banking, ICICI Bank launched the "Probationary Officer Programme". ;Launched Bank@home services for all savings and current a/c customers residing in India ; ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.

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2008 : ICICI Bank enters US The US Federal Reserve permitted ICICI to convert its representative office in New York into a branch.; ICICI Bank enters Germany, opens its first branch in Frankfurt ; ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all internet banking transactions can now be simply done on mobile phones. ; ICICI Bank concluded India's largest ever securitization transaction of a pool of retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a multi-tranche issue backed by four different asset categories. It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since the beginning of 2007. ; ICICI Bank launches ICICIACTIVE - Banking Interactive Service - along with DISHTV, which will allow viewers to see information about the Bank's products and services and contact details on their DISHTV screens. ; ICICI Bank and British Airways launch co-branded credit card, which is designed to earn accelerated reward points to the card holders with every British Airways flight or by spending on everyday purchases. 2009: ICICI Bank Board appoints Mr K. V. Kamath as non-executive Chairman and Ms Chanda Kochhar as Managing Director & CEO effective May 1, 2009, while the existing nonexecutive Chairman Mr N Vaghul retires after completing his term on April 30, 2009 ; ICICI bank ties up with BSNL Cell One for bill payments, it will facilitate bill payment for BSNL Cell One users through www.icicibank.com across all the 27 circles of BSNL. ; ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed an agreement on Export Credit Line totaling up to US$100 million with the Japan Bank for International Cooperation (JBIC) which constitutes the international wing of Japan Finance Corporation. ; ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed a loan agreement with the Export-Import Bank of China (China Exim) for USD 98 million under the Two- step Buyer Credit (Export Credit) arrangement. ICICI Bank is the first Indian Bank to have entered into this arrangement with China Exim ; ICICI Bank with Singapore Airlines launched ICICI Bank Singapore Airlines Visa Platinum Credit Card, the Card has exclusive privileges especially designed for the members. ; ICICI Bank announced an association with mChek, Indias leading mobile payment solutions provider, to facilitate mChek services to all ICICI Bank Debit and Credit Card customers. These are electronic cards issued to the customers with mChek application on

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their mobile phone. ; Ms Chanda Kochhar took charge as the Managing Director & CEO of ICICI Bank from May 1, 2009. ICICI BANK TODAY ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank by market capitalisation and second largest overall in terms of assets. Trotal assets of Rs. 3,562.28 billion (US$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the nine months ended December 31, 2009. The Bank also has a network of 1,640+ branches (as on February 11, 2010) and about 4,721 ATMs in India and presence in 18 countries, as well as some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the HiSAVE savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular. ICICI reported a net profit of Rs. 3,758 crore (US$ 741 million) for FY2009. The bank's Current and savings account (CASA) ratio increased to 28.7% at March 31, 2009 from 26.1% at March 31, 2008. Increase of Rs. 5,286 crore in CASA deposits in quarter ended March 31,2009. ICICI Bank is one of the Big Four Banks of India with State Bank of India, Axis Bank and HDFC Bank

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ICICI Bank Group

BUSINESS PROFILE

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Products & Services Personal Banking

Deposits Loans Cards Investments Insurance Demat Services Wealth Management

NRI Banking

Money Transfer Bank Accounts Investments Property Solutions Insurance Loans

Business Banking

Corporate Net Banking Cash Management Trade Services FXOnline SME Services Online Taxes Custodial Services

Head Office ICICI Bank 9th Floor, South Towers

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ICICI Towers Bandra Kurla Complex Bandra (E) Mumbai. Phone: 91-022-653 7914 Website: www.icicibank.com Capital structure The Authorized Capital of ICICI Bank is 214.75 Crores. The Issued, Subscribed and Paid Up Capital is divided into 1113250642 equity shares @ Rs.10/- each.

Board of Directors
Board Members Mr. K. V. Kamath, Chairman .................................................... Mr. Sridar Iyengar .................................................... Mr. Homi R. Khusrokhan .................................................... Mr. Lakshmi N. Mittal ................................................ Mr. Narendra Murkumbi ................................................. Dr. Anup K. Pujari ................................................. Mr. Anupam Puri ..................................................

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Mr. M.S. Ramachandran .................................................. Mr. M.K. Sharma .................................................. Mr. V. Sridar Prof. Marti G. Subrahmanyam ......................................................... Mr. V. Prem Watsa ......................................................... Ms. Chanda D. Kochhar, Managing Director & CEO ......................................................... Mr. Sandeep Bakhshi, Deputy Managing Director ......................................................... Mr. N. S. Kannan, Executive Director & CFO ......................................................... Mr. K. Ramkumar, Executive Director ......................................................... Mr. Sonjoy Chatterjee, Executive Director

Board committee Board Governance Remuneration & Audit Committee Nomination Committee

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Mr. Sridar Iyengar, Chairman Mr. M. K. Sharma, Alternate Chairman Mr. Narendra Murkumbi Mr. V. Sridar Corporate Social Responsibility Committee Mr. M. K. Sharma, Chairman Dr. Anup K. Pujari Ms. Chanda D. Kochhar

Mr. M. K. Sharma, Chairman Mr. K. V. Kamath Mr. Anupam Puri Prof. Marti G. Subrahmanyam

Customer Service Committee

Mr. K. V. Kamath, Chairman Mr. Narendra Murkumbi Dr. Anup K. Pujari Mr. M. S. Ramachandran Mr. M.K. Sharma Ms. Chanda D. Kochhar

Credit Committee

Fraud Monitoring Committee Mr. M. K. Sharma, Chairman

Mr. K. V. Kamath, Chairman Mr. Narendra Murkumbi Mr. M. S. Ramachandran Mr. M .K. Sharma Ms. Chanda D. Kochhar Risk Committee

Mr. K. V. Kamath Mr. Narendra Murkumbi Ms. Chanda D. Kochhar Mr. Sandeep Bakhshi

Share Transfer & Shareholders'/ Investors' Grievance Committee Mr. M. K. Sharma, Chairman

Mr. K. V. Kamath, Chairman Mr. Sridar Iyengar Dr. Anup K. Pujari Prof. Marti G. Subrahmanyam Mr. V. Prem Watsa

Mr. Narendra Murkumbi Mr. N. S. Kannan

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Ms. Chanda D. Kochhar Committee of Executive Directors Ms. Chanda D. Kochhar, Chairperson Mr. Sandeep BakhshiMr. N. S. Kannan Mr. K. Ramkumar Mr. Sonjoy Chatterjee

BUSINESS OBJECTIVE
Vision To be the leading provider of financial services in India and a major global bank. Mission We will leverage our people, technology, speed and financial capital to : be the banker of first choice for our customers by delivering high quality, world-class service. Expand the frontiers of our business globally. Play a proactive role in the full realisation of Indias potential. Maintain a healthy financial profile and diversify our earnings across businesses and geographies. Maintain high standards of governance and ethics. Contribute positively to the various countries and markets in which we operate. Create value for our stakeholders.

TECHNOLOGY Used In ICICI Bank

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ICICI use many type of advance technological software like Pinnacle 7.0 and Pinnacle7.016.Among from this software ICICI bank uses the e-banking, core banking, mobile banking electronic display sy ICICI Bank was using Teradata for its data warehouse. However, due to its proprietary hardware, the cost of procurement, upgrades and administration was soaring. The closed box architecture of Teradata imposed restrictions on scalability. Secondly, querying and loading could not happen simultaneously. Queries could only be run during business hours because the loading of data had to take place during off business hours. This meant that the refresh rate of EDW was delayed, so queries may not reflect the most current data. ICICI Bank was also dependent on Teradata for support and other activities: The bank was completely tied down to that solution. These issues compelled ICICI Bank to look for more efficient and flexible solutions. The solution would have to address not only current issues, but accommodate future growth expectations and business requirements. ICICI Bank evaluated numerous data warehousing solutions in the pursuit of solving its issues, and developed a shortlist of alternatives for its migration proof-of-concept: Sybase, SAS and Netezza. The primary criteria for evaluation was the price-to-performance ratio where Sybase IQ emerged the clear winner. During this rigorous testing, Sybase IQ delivered faster results on independent hardware and operating systems with minimum infrastructure. Commending the improvements achieved, Amit Sethi, Joint General Manager, ICICI bank says, "What impressed us wasthat even with overall lower costs, we could achieve significantly better query performanceafter implementing the Sybase enterprise warehouse solution." ICICI Infotech today launched an enterprise resourceplanning (ERP) solution for the small and medium enterprises. The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a 15-user license. An ERP package helps a manufacturer or any other business implementing it to manage all the important parts in the company such as product planning, parts purchasing, maintaining inventory and interacting with suppliers and customers. ICICI Infotech officials told a press conference here today that Orion Advantage offered a set of business practice solutions for industry segments such as engineering, auto ancillary, pharmaceuticals, chemicals and IT distribution. Besides the cost advantage, the ERP package

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also came pre-configured. ICICI Infotech had mapped the processes specific to each industry segment into the package. Mr. Manoj Kunkalienkar, Executive Director and President, ICICI Infotech, said that smalland medium enterprises (SMEs) offered a good market and ICICI Infotech hoped to become a leading solution provider to this segment. Mr. R.K. Kanthi, Deputy General Manager, ICICI Infotech, said there was no ERP packagefor the SMEs that bundled the server, database and operating system right now. That was the advantage ICICI Infotech offered to SMEs as Orion Advantage came bundled and preconfigured. Besides the high cost of generic ERP packages, their implementation time as far as SMEs were concerned was also long. Orion Advantage could be installed in 45 days. ICICI Infotech had signed up six customers so far for the package and hoped to garner a 15 per cent market share of the SME segment, whose number in the country was estimated at 2.30 lakh. Mr. K.S. Natarajan, Managing Director, Trident Pneumatics Pvt Ltd of Coimbatore, one of the companies that had installed Orion Advantage, said that the company had tried three other ERP packages, all of which had failed, before settling on Orion Advantage. Mr Kunkalienkar said that ICICI Infotech planned to move the two development centers in Chennai into a single location and double the staff strength from 300 now in the next two years. The Chennai centers were involved in research and development of Orion ERP solutions and Premia, an insurance package.

We can see that the how technology gives the best results in the below diagram. There are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008 (25%). These type of technology gives the freedom to retail customers. Centralized Processing Units Derived Economies Of Scale

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Electronic Straight through Processing Data Warehousing,CRM Innovative Technology Application

Reduced Transaction Cost Improve Cost Efficiency,Cross Sell Provide New Or Superior Products

The countrys middle class accounts for over 320 million people. In correlation with thegrowth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion. PRODUCTS AND SERVICES PERSONAL BANKING Loan Product Auto loan Loan security Loan property Personal loan Credit card 2- wheeler loan Commercial vehicles finance Home loans Retail banking Tractor loan Working capital business against against Deposit Product Savings A/C Current A/C Fixed Deposits Demat A/C Safe Lockers Deposit Investment & Insurance Mutual Funds Bonds Knowledge Centre Insurance General And Health Insurance Equity Derivatives Mudra Gold Bar And

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finance Construction Equipment finance Health care finance Education loan Payment Services Net Safe -------------------------------Forex services ------------------------------- Product Services Trade Services Forex Service And Merchant Prepaid Refill Bill Pay Visa Bill Pay InstaPay Direct Pay VisaMoney Transfers E-Monies Electronic Funds Transfer Online Payment Of Direct Tax Access To Bank Net Banking One View InstaAlert Banking ATM Phone Banking Email Statements Branch Network Mobile

Gold loan Cards Credit Card Debit Card Prepaid Card

Branch Locater RBI Guidelines

WHOLESALE BANKING

Corporate

Small and Medium Enterprises

Financial Institutions and Trusts

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Funded Services Non Services Value Services Internet Banking Added Funded

Funded Services Non Services Specialized Services Value Services Internet Banking Added Funded

BANKS Clearing Sub-Membership RTGS Sub-Membership Fund Transfer ATM Tie- Ups Corporate Salary A/C Tax Collection

Financial Institutions Mutual Funds Stock Brockers Insurance Companies Commodities Business Trusts

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 NRI SERVICES

Accounts & Deposits Rupee Saving A/C Rupee Current A/C Rupee Fixed Deposits Foreign Currency Deposits Accounts For Returning Indians

Remittances North America Uk Europe South East Asia Middle East Africa Others

Quick Remit India Link Check Lock Box Telegraphic/ Wire Transfer Fund Transfer Cheques/Dds/Tcs Investment & Insurances Mutual Funds Insurance Private Banking Portfolio Investment Scheme Loans Home Loans Loans Against Securities Loans Against Deposits Gold Card Credit

Payment Services Net Safe Bill Pay InstaPay

Access To Bank Net Banking One View InstaAlert 41

DirectPay VisaMoney Online Donation

ATM Phone Banking Email Statements Branch Networks

PRODUCTS ICICI Bank offers wide variety of Deposit Products to suit your requirements. Coupled with convenience of networked branches/ ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at your doorstep. Select any of its deposit products and provide your details online and their representative will contact you for Account Opening. SAVING ACCOUNTS ICICI Bank offers customers a power packed Savings Account with a host of convenient features and banking channels to transact through. So now customers can bank at their convenience, without the stress of waiting in queues. Special Savings Account: The Special Savings Account has been designed keeping in mind the specific needs of organizations such as Trusts, Associations, Societies, Councils, Clubs etc. It provides organizations solutions with added value and is ideal for tax exempted entities. LIFE PLUSSenior citizens savings account LIFE PLUS,a special savings account for senior citizens from ICICI Bank is packed with a host of benefits,designed keeping your unique financial requirements in mind. 42

Special senior citizens desk to cater to all banking transactions, so that you dont wait in queues. Higher interest rate on FD/RD:avail the combined benefits of safety,felexibility and attractive returns with ICICI Bank Fixed Deposit and Recurring Deposit. Free special senior citizen LIFE PLUS debit card. Money multiplies facility. Extended banking hours allows you to visit our branches,as per your convenience. Anywhere banking access to various services,ICICI Bank has to offer anytime,anywhere and from any place,including branches,ATMs and phone banking. Nomination facility available. Quarterly average balance(QAB) requirement of Rs.5000. Quarterly physical statements are delivered to your doorstep to absolutely free of cost. Passbook on request.

Young Stars Account: Young Stars is a banking service for children, aged 1day -18 years, brought to you by ICICI Bank to help the parents meet the present and future aspirations that they hold for their child. It offers various savings and investment options to the parent along with teaching the child to manage his/her personal finance in a more responsible and independent manner.Young Stars will guide your child through the world of banking -through checking the account balance, fun zones and special pages on the internet. It makes banking a pleasure and of course teaches your child to manage their personal finances.With the pocket money that you transfer to your child's account, you can even shop with him / her at Young Stars very own shopping page. You can even open a recurring deposit in your child's name. Once you are done with your 'banking', you can access your child's account with all the fun links to special zones designed to suit your child's area of interests and also impart knowledge on the current events of the world. 43

Advantage woman savings account The ICICI Bank Advantage Woman Account enables todays independent women to enjoy hassle-free banking services. Besides the core ICICI Bank advantage, the Advantage Woman Savings Account is packed with special benefits for our women customers. Enjoy your present and plan for the future with ICICI Banks Advantage Woman Savings Account.Advantage Woman offers a specially designed woman's debit card which helps you shop and save simultaneously, manages your household expenditures and comes with a bag full of offers attached to it. Special International Womans Debit Card with lots of offers. Free unlimited access to any banks ATM. Bill Pay facility & Multi Channel Access. Payable-at-par cheque book. Nomination facility available. Zero balance facility with an RD of Rs.2000 or Quarterly Average Balance (QAB) requirement of Rs. 10,000. Current Accounts: Every business requires efficient banking facilities to support its business activities. ICICI Bank offers premium quality service, unfolding a wide array of class products. With technology leadership and service the bank is able to meet some of the most challenging financial needs of clients.A Current Account is one that is required by Businessman, Joint stock companies, Institutions, Public authorities, public corporations etc. Any business that has numerous banking tranactions need a current account as it Allows running account supporting unlimited withdrawals and deposits. Is meant for convenience and not to save money.

Roaming Current Account

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Only Roaming Current Account from ICICI Bank travels the distance with customers business. With advanced technological features such as MCC and LCC, banking needs are well taken care of, customers can access their accounts at over 500 networked branches across simplifies banking for them. Salary Accounts Salary Account is a feature rich corporate payroll account with benefits for both corporates and its employees. The process of drawing cheques for salaries is replaced by sending a single ASCII file to the bank and the amount is directly credited into the employees salary account Cuts down payroll processing workload Salary Account can be opened with minimum 10 employees Instant credit of salaries the country. So while customers take care of their business, ICICI Banks Roaming Current Account

ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Employees.As an organization, you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy numerous other benefits too.With ICICI Bank Salary Accounts your employees will enjoy the convenience of : Having the largest network of ATMs at their command, Free 24 hour Phone Banking, Free Internet Banking.

All that the organization would require to do is to send ICICI Bank an advice (in form of a cheque/debit instruction, ecs, 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

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employees' accounts as per your statement of advice.ICICI Bank Salary Accounts benefits you in more than one ways: Reduces paperwork. Saves remittance costs.

Employees receive instant credit of salaries. More convenient than ECS. Besides all of the above, employees automatically become ICICI Bank account holders with special benefits and privileges of 8-8 banking, Investment advisory and much more...

Fixed deposits:

Fixed deposits are options which help you grow your money thus creating wealth in a safer and secure way. ICICI provides its customers with various kinds of Fixed deposit facilities that are flexible and cater to customers who have different needs and wants in their fixed deposits. ICICI provides a Fixed Deposit that allows customers to deposit their money for just as long as you wish. Wide range of tenures 15 days to 10 years. Choice of investment plan traditional and cumulative deposits. Partial withdrawal allowed. Loan facility available you can avail loan up to 90% of principal and accrued interest. Auto renewal facility you can choose this option so that the deposit can be renewed on maturity. Interest compounded quarterly. Additional interest rate of 0.5% for senior citizens.

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Recurring Deposits: ICICI Bank Recurring Deposits are an ideal way to invest small amounts of money every month and end up with a large kitty on maturity.High recurring billing and recurring payments can be a drain on your finances and hence large investments may seem a plan away. Recurring deposits aims to encourage savings without putting any stress on customers finances by making them to put a lump sum amount in fixed deposit in one go.The recurring deposit also attracts high rate of return that are identical to the fixed deposit rates and most importantly no TDS is applicable in it .the minimum balance of deposit is of Rs.500 and thereafter in multiples of Rs.100 the minimum period is 6 months and thereafter in multiples of 3 months,nomination facility is also available. Security Deposits: A few Corporates stipulate to their new employees to provide Security Deposit to reduce attrition. ICICI Banks proposal for the employee is to keep the Security Deposit in the form of a Fixed Deposit (FD) with the Bank. The employee cannot withdraw such FDs without the consent of the company and the company has the right to withdraw the FD in the event of employee leaving the organization before a certain stipulated period. ICICI Bank Tax-Saver Fixed Deposit ICICI Banks Tax-Saver Fixed Deposit enables you to save tax and earn high returns. A dual benefit option structured to maximise your advantage. ICICI Banks Tax Saver FD is the perfect solution for your investment needs. EEFC Account

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Indian exports have surged over the last decade owing to an unprecedented boom in sectors like software, biotechnology, gems, jewellery, textiles etc. As a result of this, the volume of inward remittances has also increased significantly. To shield the firms engaged in regular export and import from the exchange rate fluctuations RBI has allowed parking of foreign currency by exporters in an account designated as Exchange Earners Foreign Currency Account (EEFC). EEFC accounts are Current Accounts held in foreign currency with authorized dealers of foreign exchange in the country. Resident Foreign Currency (Domestic) Account Do you want to save money while buying foreign currency for travelling abroad? You can buy travellers cheques, foreign currency in cash and foreign currency demand draft for your expenses overseas. If you are a frequent traveller, you may not want to go through the hassles of buying foreign currency every time you travel abroad. The Reserve Bank of India has now made it easier for you to access foreign currency by permitting a foreign currency account (domestic) for resident Indians. In line with RBI guidelines, ICICI Bank has come up with a scheme that helps you get rid of all your forex worries. You can park your foreign currency in ICICI Bank under RFC (D) account. Noninterest bearing Resident Foreign Currency (D) (RFC (D)) with ICICI Bank can be maintained in four major currencies (USD, EURO, GBP and Japanese Yen) PRIVILEGE BANKING: Privilege banking service ensures preferential treatment to its customers. Silver privilege A/c Waiver of multi-city cheque book usage up to Rs. 1,00,000 per month. Waiver of DD/PO charges for upto Rs.50,000 per day. Preferential rates of gold coins,deposits lockesr &foreign exchange. Quarterly average balance requirement of Rs.25000.

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Gold privilege A/c Priority processing at all ICICI Bank branches and customer care. Free usage of payable -at-par chequebook. Free international gold debit card with higher daily withdrawal and spend limit. Waiver of DD/PO charges for up to Rs.100,000 per day. Free anywhere banking facility. Prefrential rates for gold coins,deposit lockers and foreign exchange. Quarterly Average Balance(QAB) requirement of Rs.50000.

Titanium privilege A/c Branch relationship manager supported with phone banking relationship manager. Priority processing at ICICI Bank brancghes and customer care. Free international titanium debit card with higher daily withdrawal and spend limit. Free anywhere banking facility. Free usage of multy-city cheque book. Free physical monthly account statement. Complete waiver on DD/PO charges. Preferential rates for gol coins,deposit lockers and foreign exchange. Quarterly average balance (QAB)requirement Relationship Value(TRV)of Rs. 5,00,000. Family banking: Superior product benefits of privilige banking,wealth management and global private client(GPC) available to all the members of your family while the required minimum balance can be maintained in any of the accounts. 49 of Rs.75000 and Total

Access to superior benefits for the entire family. Flexibility to maintain balances across account. Lower minimum balance requirement at individual customer level. Single family bank convenience for the entire family and easier funds management.

Outward Remittance: Send money to your loved ones abroad ICICI Bank offers you a simple way to send money outside India. Our Outward Remittance facilities make remitting money abroad quick, and reliable. ICICI Banks Outward Remittance is the solution for your all your needs. Be it money for education, gift money or maintenance for loved ones or donation for a cause. Our extensive network gives us reach to most parts of the world.

Advantage Deposit Advantage Deposit is a combination of fixed deposit and mutual fund investment, offering you the safety of a fixed deposit and the returns of an equity fund. Advantage Deposit counters equity-market fluctuations through Systematic Investment Plans.

Combination of a Fixed Deposit (with monthly interest payout) and Systematic Investment Plan (SIP) of a Mutual Fund. Re-investment of monthly interest payout of Fixed Deposit into systematic investment plan of Mutual Fund. Automatic debits to account through Standing Instruction / ECS debit mandate.

New Pension System of Government of India

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ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION SYSTEM launched on May 1, 2009 by the Government of India. The scheme, promoted by the PFRDA (Pension Fund Regulatory and Development Authority, Government of India), is a first of its kind in India and is being launched pan-India by 22 other POP's as well. The purpose of this pension scheme is to promote security of income to its subscribers in their old age. The scheme will empower a subscriber to plan his own retirement and pension. It not only will help him save for life after retirement but also is a good investment tool as the returns are market-driven. For optimum returns, the Government has appointed six fund managers for subscribers to choose from. LOANS HOME LOAN Interest rates on home loans have come down considerably in the last few years. Individuals who opted for housing loans in the years gone by, are still servicing them at 17% to 21% per annum. Quite a price to pay, since one can get a loan today for around 12% per annum. In such a case, you can opt for a balance transfer. Under this scheme, customers can replace their existing old high interest loan by a cheaper (equal to applicable current rates) loan. ICICI Home Finance will not only finance the balance amount of outstanding loan but also your prepayment charges to the old housing finance company. The result: A lower EMI with the same tenure . A reduced tenure with the same EMI. A reduced tenure and EMI . The same EMI and tenure but an additional amount as a loan.

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PERSONAL LOANS ICICI Bank Personal Loans are easy to get and absolutely hassle free. With minimum documentation you can now secure a loan for an amount up to Rs. 15 lakhs. Loans for salaried & self employed individuals. Loans are available from Rs. 20,000 to Rs. 15 Lakhs. Repayment tenures from 12 - 60 months. No Security,Collateral or Guarantors required. Loans can be used for any purpose with no questions asked regarding the end use of the loan. A balance transfer facility available for those who want to retire any higher debt. All loan repayments are done via equated monthly instalments (EMI).

CAR LOAN

The NO. 1 financier for car loans in the country. Network of more than 1500 channel partners in over 780 locations. Tie-ups with all leading automobile manufacturers to ensure the best deals. Flexible schemes & quick processing. Hassle-free application process on the click of a mouse.

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COMMERCIAL VEHICLE LOAN

Reaches you through more than 700 locations across the country. Range of products under one umbrella. Funding of various products like HCVs, Buses,

MCVs, LCVs, 3 wheelers & used vehicle. Range of services on existing loans & extended products like funding of new vehicles, refinance on used vehicles, balance transfer on high cost loans, top up on existing loans, Xtend product, working capital loans & other banking products.. Preferred financier status with most of the leading manufacturers. Simple documentation. Quick turn around time. Flexible financing solutions to meet the individual requirement.

TWO WHEELER LOANS: "Zoom" away in your favourite two wheeler. ICICI provides attractive schemes at competitive interest rates. Finance facility available for all two wheelers ranging from mopeds to motor bikes. Now avail Finance upto 90%* of the On Road Cost of the vehicle, repayable in convenient tenure options ranging from 6 months to 36 months*. Ride Easy Pay Easy with ICICI Bank Two Wheeler Loans. In an unlikely case of your not meeting our norms NO PROBLEM - you can still avail our loan, any blood relative can be your co-applicant. Existing ICICI Bank Customers ride away on your favourite Two Wheeler by availing Loan On Phone*-- a facility to get an instant loan over the phone!! Apply for loan online, call or through sms.

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FARM EQUIPMENT LOANS: ICICI is the preferred financier for almost all leading tractor manufacturers in the country. ICICI finances farm equipments in over 381 locations spread across the country. Provides fast processing of files with easy documentation.

Flexible repayment options in tandem with the farmer's seasonal liquidity. Monthly, Quarterly and Half-yearly repayment patterns to choose from. Comfortable repayment tenures from 1 year to 6 years.

CONSTRUCTION EQUIPMENT LOAN Having funded infrastructure for over 4 decades, ICICI understands the need of the customers better. ICICI Bank offers attractive financial packages through their excellent distribution network. The products are customised for new entrepreneur to large business houses. ICICI has tie-up with leading construction equipment manufacturers for wide range of products. The Bank take over existing high cost loans at competitive terms resulting in huge savings and is quick in processing due to easy formalities and one time sanction of loans for disbursement over a period of time. OFFICE EQUIPMENT LOAN: Minimum documentation required . Doorstep Service. Flexible repayment structure. Details on your application status online. MEDICAL EQUIPMENT LOAN: Competitive Interest rates.

Hassle-free application process with the click of a mouse.

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Professional doctors are aware of the distinct advantages that the latest medical equipment can give their patients. ICICI Bank Medical Equipment Loans supports professionals in their effort to give the best to their patients. It's our humble way of being involved in a noble profession. Loans are offered for: Purchase of New equipments. Takeover of Existing loans.

Our Key features are: Doorstep Service. Funding in more than 150 locations across the country. The bank provides Competitive interest rates. ICICI also offers flexible repayment structure.

LOAN AGAINST SECURITIES Loans against Securities enables customers to obtain loans against their securities. So they get instant liquidity without having to sell their securities. All customers have to do is pledge your securities in favour of ICICI Bank The Bank will then grant them an overdraft facility upto a value determined on the basis of the securities pledged by them. A current account will be opened and customer can withdraw money as and when they require. Interest will be charged only on the amount withdrawn and for the time span utilised. ICICI offer loans against: Demat Shares RBI Relief Bonds Mutual Funds Units India Millennium Deposits (IMDs) ICICI Bank Bonds Life Insurance Policies (Single Premium)

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CREDIT CARDS: ICICI Bank Credit Cards give you the facility of cash, convenience and a range of benefits, anywhere in the world. These benefits range from life timefree cards, Insurance benefits, global emergency assistance service,discounts, utility payments, travel discounts and much more. DEBIT CARDS: The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world.The ICICI Bank Debit Card can be used for shopping at more than 100,000 merchants in India and 13 million merchants worldwide. TRAVEL CARD: Presenting ICICI Bank Travel Card. The Hassle Free way to Travel the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of usage of Credit or Debit card.

PRE PAID CARDS: ICICI Bank brings to you a complete bouquet of pre-paid cards providing payment solutions at your fingertips. ICICI Bank pre-paid cards are a safe &convenient way for associate payments, disbursements, gifting & small ticket transactions. Pre-paid cards

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are available on a VISA platform thus providing accessibility to over one lakh merchant establishments & cash withdrawal from all VISA ATMs in India. INVESTMENTS ICICI Bank cares about all needs. Along with Deposit products and Loan offerings, ICICI Bank assists people to manage their finances by providing various investment options ranging from ICICI Bank Tax Saving Bonds to Equity Investments through Initial Public Offers and Investment in Pure Gold. ICICI Bank facilitates following investment products:

ICICI Bank Tax Saving Bonds Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporate Investment in "Pure Gold" Foreign Exchange Services Senior Citizens Savings Scheme, 2004

Customers can invest in above products through any of ICICI bank branches. For select products ICICI Bank also provides the ease of investing through electronic channels like ATMs and Internet (ICICIdirect.com) ICICI BANK BONDS All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA" by ICRA indicating the highest degree of safety for your money. Investment in ICICI Bank Bonds are eligible for tax rebate under Sec 88 to the full extent possible. Bonds are listed on BSE, NSE. GOI BONDS

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 8% Savings Bonds (Taxable), 2003. Low risk. Reasonable investment tenure. Nomination facility available. Cannot be traded in secondary market. Interest income taxable. Mutual Funds Mutual Funds pool money of various investors to purchase a wide variety of securities while pursuing a specific goal. Selection of Securities for the purpose is done by specialists from the field. Returns generated are distributed to the Investors. Mutual Fund Companies offer various schemes. Investors can choose any particular Fund/Scheme or mix of Funds/Schemes depending upon their perception towards risk. Investment is done on the basis of prevailing Net Asset Values of various schemes. Mutual Funds Investments are subject to Market Risks. Types of Funds Sold ICICI Bank helps investor determine which types of funds you need to meet your investment goals. This may include the following types of funds: Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemes etc. Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc. Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child education Schemes etc. ICICI Bank helps investors identify an appropriate mix of Mutual Fund schemes for their portfolio using asset allocation strategies. 58

Through ICICI Bank investor can invest in various schemes of multiple mutual funds with decent performance record. investor can take the aid of ICICI Banks various research reports on mutual funds and their schemes before choosing a scheme for investment. ICICI Bank offers investment in Mutual Funds through Multiple Channels. With ICICI Bank, investor can invest in Mutual Funds through following channels. ICICI Bank Branches ICICI Bank ATMS ICICIdirect.com

And provide a Dedicated workforce to serve clients. Before being deputed, our officers complete a comprehensive training program and, once deputed, they receive thorough instructions in financial planning skills and techniques Throughout their careers officers also attend programs to update their skills. All officers in charge of Mutual Funds are certified professionals by AMFI (Association of Mutual Funds in India) Many of these officers also hold professional degrees like - MBA, CA, ICWA, and CFA etc. ICICI keeps the investors updated on the latest happenings in the Mutual Fund industry and the various financial markets through regular electronic updates (daily & weekly) through Emails. ICICI also send out a monthly magazine on investments to their customers. Initial public offerings (IPO) Investor can invest in IPOs online through www.icicidirect.com with same convenience of investing in equities - hassle-free and with zero paper work. Also, get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit the market. IPO calendar, recent

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IPO listings, prospectus/offer documents and live prices will help you keep on top of the IPO markets. ICICI Bank Pure Gold Gold has been traditionally the most favored form of investment for Indians. In fact, India, even today is amongst the highest consumers of Gold in the world. However, the Gold market remains largely unorganized with reliability and convenience remaining the key issues for gold buyers in the country.ICICI Bank with its `Pure Gold' offer attempts to bridge the gap between the need of the customers for buying gold and availability of an organized avenue to satisfy that need, by taking care of the two key components:-

Reliability and Convenience. Reliability 24 Carat ICICI Bank Pure Gold is imported from Switzerland. This Gold carries a 99.99% Assay Certification, signifying highest level of purity, as per international standards. Convenience ICICI Bank Pure Gold is competitively priced based on daily prices in the international bullion market. Currently, gold is available in 2.5g, 5g, 8g, 20g and 50g categories. PRIVATE BANKING Benefits: Comprehensive range of products and services -Savings Account, Fixed Deposits, Recurring Deposits, Quantum Optima, Current Accounts, -Resident Foreign Currency (Domestic) Accounts etc. -Asset Products- Home Loans, Car & Personal Loans, Loan Against Securities etc. -Investments- Government of India Bonds, Mutual Funds, Capital Gain Bond etc.

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-Insurance -Web Trade and Demat Accounts -Gold Coins & Bureau de Change -International Debit and Credit cards -And many more.... Exclusivity and Convenience -Dedicated Officer -Separate interaction area in the branch -Anywhere Banking facility -Exclusive Phone Banking service -Competitive Pricing -Reduced rates for products and services -Several Complimentary Offers -Value-linked benefits

Competitive Pricing -Reduced rates for products and services -Several Complimentary Offers -Value-linked benefits SERVICES INVESTMENT SERVICES

DematServices A Demat Account allows employees transact in shares instantaneously in a safe and secure manner.

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ReliefBonds/MutualFunds/Insurance Salary Account customers can now invest in Government of India relief and savings bonds, a basket of mutual funds, foreign exchange facilities and Insurance products through ICICI Bank.

GoldCoin Employees can buy 24 karats Pure Gold, which ICICI Bank brings to you. Each coin comes to you straight from Switzerland. Refined to 99.99% fine gold and sealed with a unique Certificate of Authencity- guaranteeing you its purity.

FOREX SERVICES ICICI Bank's Foreign Exchange Services will help you organize your foreign exchange in the most hassle free manner. Whether its Foreign Currency, Travelers Cheques or Travel Card, ICICI Bank Foreign Exchange Services is a one-stop solution to your foreign exchange requirement. NRI SERVICES Wherever people may be, in India or abroad, ICICI Bank has created a wide range of products and services that provide customers complete financial solutions. Helping them to make the right decisions at the right time and can be rest assured that they are in the safe and trustworthy hands of ICICI bank. Deposit Products: 1. NRE Account: An NRI can open a Non-Resident External Account(NRE Account)with any bank in India. The account not only lets customers manage their money that they earn in India (as permitted by FEMA Regulations) but also of the money earned abroad. The money in the account and the interest earned on it can be sent back outside India without any authorization from RBI. The Account can be opened and funded in any permissible currency, and is later converted into Indian Rupees. This Account offers dual benefits of high returns as offered by the fixed deposits and liquidity as offered by the savings account. The Account helps customers take care of all their financial needs, quickly and conveniently. In addition to attractive rupee interest 62

rates customers get free money transfers, easy access for the customer as well as for his/her family back in India, and a free mandate card for the loved ones in India. 2 . NRO Account: The Non-Resident Ordinary Account (NRO Account) allows customers to hold the money they have earned in India such as rent, dividends, pensions etc. They can open the account and can fund it in any permissible currency and is later converted into Indian Rupees. NRO account offers attractive exchange rates upon conversion of foreign currency into Indian Rupees. This account to offers high returns and liquidity. However, the interest earned on the principal amount in the account can be sent back after the deductions of tax in India. 3. FCNR Account:A Foreign Currency Non Resident Account (FCNR Account) allows customers to maintain funds as Term Deposits in various foreign currencies, thereby guarding customers against fluctuating exchange rates. Under this account both the principal amount and the interest can be sent back fully, and are taxable in India. The tenures range from 12 to 36 month 4. RFC Account: By opening a Resident Foreign Currency Account (RFC Account)

customers can maintain funds as Term deposits in various foreign currencies even after they have returned to India. Both the principal and the interest can be remitted outside India. The tenures range from 1month to 36months. Advisory Services Private Equity Placement ICICI Bank's Small Enterprises Group's (SEG) Investment Banking team is dedicated to provide you niche and exclusive investment banking services. The ICICI Bank Edge

Capital Raising At times for a growing company, the amount of capital that a promoter can infuse in the business becomes limited. Businesses can be self sufficient for capital needs in their nascent and initial growth phases. However to meet expansion and growth plans, 63

external capital is imperative. We at ICICI Bank, with our lending experience, fully understand this and help clients raise equity to fund growth. We have developed a strong network of domestic and international investors who are keen to partner with such success stories in India and these players solicit our advice for investing into such companies. .

Buy And Sell Side Advisory Inorganically adding growth to a business or hiving off non-core activities or opportunity to realize right value for the business created or an instance of taking a company on a bigger scale are the ways to strategize today. We at ICICI Bank provide assistance on both buy side and sell side transaction. With a large client franchise built, more than 10,000 asset clients and international linkages in developed economies, ICICI Bank can bring in the best synergy partner to conclude a sell side or buy side advisory assignment.

Special

Situation

Solutions

Backed by institutional legacy, in-depth understanding and linkages with key stakeholders in the process of turnaround, ICICI Bank's Investment Banking team can design solutions for special situations like CDR, BIFR, OTS, etc. Count on us to turn around the capital structure of your company and bring in additional capital for growth. Online Services ICICI Bank provides a variety of online services.now these is no need of walking up to the bank branch, every time you need to do your banking. As you can do a lot of it online. From paying your bills to transferring funds, booking your rail/air tickets, shopping, sending a money order and doing lots more. AWARDS & RECOGNITION

For the third year in a row ICICI Bank has won The Asset Triple A Country Awards for Best Domestic Bank in India.

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ICICI Bank won the Most Admired Knowledge Enterprises (MAKE) India 2009 Award. ICICI Bank won the first place in "Maximizing Enterprise Intellectual Capital" category, October 28, 2009. Ms Chanda Kochhar, MD and CEO was awarded with the Indian Business Women Leadership Award at NDTV Profit Business Leadership Awards , October 26, 2009.

ICICI Bank received two awards in CNBC Awaaz Consumer Awards; one for the most preferred auto loan and the other for most preferred credit Card, on September 30, 2009. Ms. Chanda Kochhar, Managing Director & CEO ranked in the top 20 of the World's 100 Most Powerful Women list compiled by Forbes, August 2009. Financial Express at its FE India's Best Banks Awards, honoured Mr. K.V. Kamath, Chairman with the Lifetime Achievement Award , July 25, 2009. ICICI Bank won Asset Triple A Investment Awards for the Best Derivative House, India. In addition ICICI Bank were Highly commended , Local Currency Structured product, India for 1.5 year ADR GDR linked Range Accrual Note., July 2009. ICICI bank won in three categories at World finance Banking awards on June 16, 2009 Best NRI Services bank Excellence in Private Banking, APAC Region Excellence in Remittance Business, APAC Region. ICICI Bank Mobile Banking was adjudged "Best Bank Award for Initiatives in Mobile Payments and Banking" by IDRBT, on May 18, 2009 in Hyderabad. ICICI Bank's b2 branchfree banking was adjudged "Best E-Banking Project Implementation Award 2008" by The Asian Banker, on May 11, 2009 at the China World Hotel in Beijing. ICICI Bank bags the Best bank in SME financing (Private Sector) at the Dun & Bradstreet Banking awards 2009. ICICI Bank NRI services wins the Excellence in Business Model Innovation Award in the eighth Asian Banker Excellence in Retail Financial Services Awards Programme.

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ICICI Bank's Rural Micro Banking and Agri-Business Group wins WOW Event & Experiential Marketing Award in two categories - Rural Marketing programme of the year and Small Budget On Ground Promotion of the Year. These awards were given for Cattle Loan 'Kamdhenu Campaign' and 'Talkies on the move campaign' respectively. ICICI Bank's Germany Branch has been certified by Stiftung Warrentest. ICICI Bank is ranked 2nd amongst 57 savings products across 19 banks ICICI Bank Germany won the yearly banking test of the investor magazine uro in the call moneycategory. The ICICI Bank was awarded the runner's up position in Gartner Business Intelligence and Excellence Award for Asia Pacific for its Business Intelligence functions. ICICI Bank's Organisational Excellence Group was recently awarded ISO 9001:2008 certification by TUV Nord. The scope of certification comprised processes around consulting and capability building on methods of quality & improvements. ICICI Bank has been awarded the following titles under The Asset Triple A Country Awards for 2009: Best Transaction Bank in India Best Trade Finance Bank in India Best Cash Management Bank in India Best Domestic Custodian in India ICICI Bank has bagged the Best Cash Management Bank in India award for the second year in a row. The other awards have been bagged for the third year in a row. ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the Canadian Helen Keller Centre's Fifth Annual Luncheon in Toronto. The award was given to ICICI Bank its longstanding support to this unique training centre for people who are deaf-blind.

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Chapter 3 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon. It may be understood as a science of studying how research is done scientifically. So, the research methodology not only talks about the research methods but also considers the logic behind the method used in the context of the research study. Research

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Methodology is a way to systematically study and solve the research problems. If a researcher wants to claim his study as a good study, he must clearly state the methodology adapted in conducting the research the research so that it way be judged by the reader whether the methodology of work done is sound or not. The Research Methodology here includes: Objective of study

Meaning of Research. Research Problem. Research Design. Data Collection method. Analysis and interpretation of Data Limitation of study

OBJECTIVE OF THE STUDY Objectives are the ends that states specifically how goal be achieved. Every study must have an objective for which all the efforts have been done. Without objective no research can be conducted and no result can be obtained. On the basis of objective all the research process is followed. Objectives are the main aspect of every study. The objective of the study

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gives direction to go through the research problem. It guides the researcher and keeps him on track. I have two objectives regarding my research project. These are shown below :1. Primary objective 2. Secondary objective 1. Primary objective :1) To study the software used in ICICI Bank. 2) To analyse the financial statements of the corporation to assess its true financial position by the use of ratios. 2. Secondary objective :1) To find out the shortcomings in ICICI Bank. 2) To see whether ICICI Bank is going well or not in different areas. IMPORTANCE OF THE STUDY By FINANCIAL PERFORMANCE ANALYSIS OF ICICI Bank we would be able to get a fair picture of the financial position of ICICI Bank. By showing the financial performance to various lenders and creditors it is possible to get credit in easy terms if good financial condition is maintained in the company with assets outweighing the liabilities. Protecting the property of the business.

Compliances with legal requirement

Meaning of Research:

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Research is defined as a scientific and systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. Research is a systematized effort to gain now knowledge. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is an academic activity and this term should be used in a technical sense. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions. Making deductions and reaching conclusions to determine whether they if the formulating hypothesis. Research is thus, an original contribution to the existing stock of knowledge making for its advancement. The search for knowledge through objective and systematic method of finding solutions to a problem is research. Research Problem The first step while conducting research is careful definition of Research Problem. To ERR IS THE HUMAN is a proverb which indicates that no one is perfect in this world. Every researcher has to face many problemswhich conducting any research thats why problem statement is defined to know which type of problems a researcher has to face while conducting any study. It is said that, Problem well defined is problem half solved. Basically, a problem statement refers to some difficulty, which researcher experiences in the context of either a theoretical or practical situation and wants to obtain the solution for the same. The problem statement here is:TO MAKE A FINANCIAL ANALYSIS OF FINANCIAL STATEMENTS OF ICICI BANK Research Design

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A research designs is the arrangement of conditions for collection and analysis data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research Design is the conceptual structure with in which research in conducted. It constitutes the blueprint for the collection measurement and analysis of data. Research Design includes and outline of what the researcher will do form writing the hypothesis and it operational implication to the final analysis of data. A research design is a framework for the study and is used as guide in collection and analyzing the data. It is a strategy specifying which approach will be used for gathering and analyzing the data. It also include the time and cost budget since most studies are done under these two cost budget since most studies are done under theses tow constraints. The design is such studies must be rigid and not flexible and most focus attention on the following: What is the study about? Why is the study being made? Where will the study be carried out? What type of data is required? Where can be required data be found? What period of time will the study include? What will be sample design? What techniques of data collection will be used? How will the data be analyzed? In what style will the report be prepared? TYPES OF RESEARCH DESIGN : EXPERIMENTAL RESEARCH DESIGN EXPLORATORY RESEARCH DESIGN DESCRIPTIVE& DIAGNOSTIC RESEARCH Exploratory Research Design: This research design is preferred when researcher has a vague idea about the problem the researcher has to explore the subject.

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Experimental Research Design The research design is used to provide a strong basis for the existence of casual relationship between two or more variables. Descriptive Research Design It seeks to determine the answers to who, what, where, when and how questions. It is based on some previous understanding of the matter. Diagnostic Research Design It determines the frequency with which something occurs or its association with something else. RESEARCH DESIGN USED IN THE STUDY: Descriptive research design is used in this study because it will ensure the minimization of bias and maximization of reliability of data collected. Descriptive study is based on some previous understanding of the topic. Research has got a very specific objective and clear cut data requirements The researcher had to use fact and information already available through financial statements of earlier years and analyse these to make critical evaluation of the available material. Hence by making the type of the research conducted to be both Descriptive and Analytical in nature. From the study, the type of data to be collected and the procedure to be used for this purpose were decided.

Data Collection Method The process of data collection begins after a research problem has been defined and research design ahs been chalked out. There are two types of data PRIMARY DATA It is first hand data, which is collected by researcher itself. Primary data is collected by various approaches so as to get a precise, accurate, realistic and relevant data. The main tool in gathering

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primary data was investigation and observation. It was achieved by a direct approach and observation from the officials of the company. SECONDARY DATA - it is the data which is already collected by someone else. Researcher has to analyze the data and interprets the results. It has always been important for the completion of any report. It provides reliable, suitable, adequate and specific knowledge. TYPE OF DATA USED IN THE STUDY The required data for the study are basically secondary in nature and the data are collected from The audited reports of the company. INTERNET which includes required financial data collected form ICICI Banks official website i.e www.icici.com and some other websites on the internet for the purpose of getting all the required financial data of the bank and to get detailed knowledge about ICICI Bank for the convenience of study. Brouchers of ICICI Bank. The valuable cooperation extended by staff members and the branch manager of ICICI bank,dharmshala contributed a lot to fulfill the requirements in the collection of data in order to complete the project. Methods of data analysis The data collected were edited, classified and tabulated for analysis. The analytical tools used in this study are: ANALYTICAL TOOLS APPLIED: The study employs the following analytical tools: 1. Comparative statement. 74

2. Trend Percentage. 3. Ratio Analysis. 4. Cash Flow Statement. Limitations of study Difficulty in data collection. Limited knowledge about the bank in the initial stages. Branch manager was reluctant for giving financial data of the bank. The analysis and interpretation are based on secondary data contained in the published annual reports of ICICI Bank for the study period. Due to the limited time available at the disposable , the study has been confined for a period of 5 years (2005-2009). Ratio itself will not completely show the companys good or bad financial position. Inter firm comparison was not possible due to the non availability of competitors data. The study of financial performance can be only a means to know about the financial condition of the company and cannot show a through picture of the activities of the company .

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Chapter 4 FINANCIAL ANALYSIS

INTRODUCTION OF THE TOPIC Meaning Of Financial Statements

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Financial statements refer to such statements which contains financial information about an enterprise. They report profitability and the financial position of the business at the end of accounting period. The team financial statement includes at least two statements which the accountant prepares at the end of an accounting period. The two statements are: The Balance Sheet Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet mirrors the financial position on a particular date in terms of the structure of assets, liabilities and owners equity, and so on and the Profit And Loss account shows the results of operations during a certain period of time in terms of the revenues obtained and the cost incurred during the year. Thus the financial statement provides a summarized view of financial positions and operations of a firm. Meaning Of Financial Analysis The term financial analysis is also known as analysis and interpretation of financial statements refers to the process of determining financial strength and weakness of the firm by establishing strategic relationship between the items of the Balance Sheet, Profit and Loss account and other operative data. The first task of financial analysis is to select the information relevant to the decision under consideration to the total information contained in the financial statement. The second step is to arrange the information in a way to highlight significant relationship. The final step is interpretation and drawing of inference and conclusions. Financial statement is the process of selection, relation and evaluation.

Features of Financial Analysis

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o To present a complex data contained in the financial statement in simple and understandable form. o To classify the items contained in the financial statement in convenient and rational groups. o To make comparison between various groups to draw various conclusions. Purpose of Analysis of financial statements To know the earning capacity or profitability. To know the solvency. To know the financial strengths. To know the capability of payment of interest & dividends. To make comparative study with other firms. To know the trend of business. To know the efficiency of mgt. To provide useful information to mgt.

Procedure of Financial Statement Analysis The following procedure is adopted for the analysis and interpretation of financial statements:-

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 The analyst should acquaint himself with principles and postulated of accounting. He should know the plans and policies of the management so that he may be able to find out whether these plans are properly executed or not. The extent of analysis should be determined so that the sphere of work may be decided. If the aim is find out. Earning capacity of the enterprise then analysis of income statement will be undertaken. On the other hand, if financial position is to be studied then balance sheet analysis will be necessary. The financial data be given in statement should be recognized and rearranged. It will involve the grouping similar data under same heads. Breaking down of individual components of statement according to nature. The data is reduced to a standard form. A relationship is established among financial statements with the help of tools & techniques of analysis such as ratios, trends, common size, fund flow etc. The information is interpreted in a simple and understandable way. The significance and utility of financial data is explained for help in decision making. The conclusions drawn from interpretation are presented to the management in the form of reports. Types Of Financial Analysis There are different ways of analysis the financial statements: 1. On The Basis Of Process Of Analysis a) Horizontal Analysis: This is used when the financial statement of a number of years are to be analysed. Such analysis indicates the trends and the increase or decrease in various items not only in absolute figures but also in percentage form. This analysis indicates the 79

strengths and weaknesses of the firm. This analysis is also called as dynamic analysis because it also shows the trend of the business. b) Vertical Analysis : This is used when financial statements of a particular year or on a particular date are analyzed. For this type of analysis we generally use common size statements and the ratio analysis. It involves a study of quantitative relationship among various items of balance sheet and profit and loss account. This type of analysis is static analysis because this is based on the financial results of one year. Vertical analysis is useful when we have to compare the performance of different departments of the same company. Among these two types of analysis, horizontal analysis is more useful because it brings out more clearly the trends of working of a firm. This gives us more concrete bases for future planning. 2. On The Basis Of Information Available

a) Internal Analysis: This analysis is based on the information available to the business
firm only .Hence internal analysis is made by the management. Internal analysis is more reliable and helpful for financial decisions.

b) External Analysis : This analysis is made on the basis of published statements,reports

and informations. This analysis is made by external parties such as creditors,investors,banks,financial analysis etc. external analysis is less reliable in comparison to internal analysis because of limited and often incomplete information. 3. On The Basis Of Number Of Firms a) Inter-Firm Analysis : When financial analysis of two or more companies or firms are analyzed and compared over a number of accounting period, it is called inter-firm analysis.

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b ) Intra -Firm Analysis : intra-firm analysis is concerned with the analysis of financial performance of different units or departments or segments of the same enterprise or company. Similarly when financial statements of two or more years of the same firm are analyzed and compared it is also called as intra-firm analysis. 4. On The Basis Of Objectives a) Accounting Analysis: Accounting analysis is analysis of past financial performance and involves examining how generally accepted accounting principles and conventions have been applied in arriving at the values of assets, liabilities, revenues and expenses. b) Prospective Analysis : Prospective analysis involves developing forecasted financial statements keeping in view the changes that are likely to shape and affect the business given the assumptions about these changes and the limitation of the forecasting technique used. This is quite complicated analysis.

Methods/Tools Of Financial Analysis A number of methods can be used for the purpose of analysis of financial statements. These are also termed as techniques or tools of financial analysis. Out of these, and enterprise can choose those techniques which are suitable to its requirements. The principal techniques of financial analysis are:a. Comparative financial statements b. Common-size statements c. Trend analysis d. Ratio analysis e. Funds flow analysis f. Cash flow analysis g. Break even point analysis

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a. Comparative Financial Statements: When financial statements figures for two or mote years are placed side-side to facilitate comparison, these are called comparative Financial Statements. Such statements not only show the absolute figures of various years but also provide for columns to indicate to increase ort decrease in these figures from one year to another. In addition, these statements may also show the change from one year to another on percentage form. Such cooperative statements are of great value in forming the opinion regarding the progress of the enterprise. Objectives purpose or significance of comparative financial statements 1.To simplify data 2.To make inter period/inter-firm comparison 3.To indicate the trends 4.To enable forecasting 5.To indicate the strengths and weaknesses of the firm 6.To compare the performance 7.To analyse expenses 8.To analyse profits Tools for comparison of financial statements Comparative financial statement is a tool of financial analysis that depicts change in each item of the financial statement in both absolute amount and percentage term, taking the item in preceding accounting period as base. Comparison and analysis of financial statements may be carried out using the following tools: 1.Comparative Balance Sheet : The comparative balance sheet shows increase and decrease in absolute terms as well as percentages ,in various assets ,liabilities and capital. A comparative

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analysis of balance sheets of two periods provides information regarding progress of the business firm. The main purpose of comparative balance sheet is to measure the short- term and long-term solvency position of the business. 2. Comparative Income Statement : Comparative income statement is prepared by taking figures of two or more than two accounting periods,to enable the analyst to have definite knowledge about the progress of the business.Compartative income statements facilitate the horizontal analysis since each accounting variable is analysed horizontally. b. Common- Size Statements: Common size statements are such statements in which the items of financial statements are covered into percentage of common base. In common-size income statement, by assuming net sales as 100(i.e %)and other individual items are converted as percentage of this. Similarly, in common size balance sheet ,total assets are assumed to be 100 (i.e %) and individual assets are expressed as percentage. Objectives of common size statements 1. Presenting the change in various items in relation to total assets or total liabilities or net sales. 2. Establishing a relationship. 3. Providing a common base for comparison. Types of common size statements 1. Common-Size Balance Sheet : A common size balance sheet is a statement in which total of assets or liabilities is assumed to be equal to 100 and all the figures are expressed as percentage of the total. That is why it is known as percentage balance sheet. Common-size balance sheet facilitate the vertical analysis since each item of the Balance Sheet is analyzed vertically.

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2. Common-Size Income Statement: Common-size income statement is a statement in which the figures of net sales is assumed to be equal to 100 and all other figures of profit and loss A/c are expressed as percentage of net sales.this statement facilitate the vertical analysiss since each accounting variable is analyzed vertically. One can draw conclusion, regarding the behaviour of expenses over period of time by examining these percentages. c. Trend Analysis: Trend percentage are very useful is making comparative study of the financial statements for a number of years. These indicate the direction of movement over a long tine and help an analyst of financial statements to form an opinion as to whether favorable or unfavorable tendencies have developed. This helps in future forecasts of various items. For calculating trend percentages any year may be taken as the base year. Each item of bease year is assumed to be equal to 100 and on that basis the percentage of item of each year calculated. d. Ratio Analysis: Meaning : Absolute figures expressed in financial statements by themselves are meaningfulness. These figures often do not convey much meaning unless expressed in relation to other figures. Thus, it can be say that the relationship between two figures, expressed in arithmetical terms is called a ratio. According to R.N. Anthony. A ratio is simply one number expressed in terms of another. It is found by dividing one number into the other.

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TYPES OF RATIOS
1. Proportion or Pure Ratio or Simple ratio. 2. Rate or so many Times. 3. Percentage 4. Fraction.

OBJECTS AND ADVANTAGES OR USES OF RATIO ANALYSIS 1. Helpful in analysis of financial statements. 2. Simplification of accounting data. 3. Helpful in comparative study. 4. Helpful in locating the weak spots of the business. 5. Helpful in forecasting 6. Estimate about the trend of the business 7. Fixation of ideal standards 8. Effective control 9. Study of financial soundness. LIMITATION OF RATIO ANALYSIS 1. False accounting data gives false ratios 2. Comparisons not possible of different firms adopt different 3. accounting policies. 4. Ratio analysis becomes less effective due to price level 5. change 6. Ratios may be misleading in the absence of absolute data. 7. Limited use of a single Ratio.

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8. Window-Dressing 9. Lack of proper standards. 10. Ratio alone are not adequate for proper conclusions 11. Effect of personal ability and bias of the analyst.

CLASSIFICATION OF RATIOS In view of the financial management or according to the tests satisfied, various ratios have been classifieds as below: Liquidity Ratios : These are the ratios which measure the short-term solvency or financial position of a firm. These ratios are calculated to comment upon the short-term paying capacity of a concern or the firms ability to meet its current obligations. Long Term Solvency and Leverage Ratios : Long-term solvency ratios convey a firms ability to meet the interest cost and repayment schedules of its long-term obligation e.g. Debit Equity Ratio and Interest Coverage Ration. Leverage Ratios. Activity Ratios: Activity ratios are calculated to measure the efficiency with which the resource of a firm have been employed. These ratios are also called turnover ratios because they indicate the speed with which assets are being turned over into sales e.g. debtors turnover ratio. Profitablity Ratios: These ratios measure the results of business operations or overall performance and effective of the firm e.g. gross profit ratio, operating ratio or capital employed. Generally, two types of profitability ratios are calculated. (a) In relation to Sales, and (b)In relation in Investment

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FUNCTIONAL CLASSIFICATION IN VIEW OF FINANCIAL MANAGEMENT OR CLASSIFICATION ACCORDING TO TESTS Liquidity Ratios Long-term Solvency and -Current Ratio -Liquid Ratio (Acid) Test or Quick Ratio. -Absolute liquid or -Cash Ratio. -Debtors Turnover Ratio -Creditors Turnover Ratio ratio Leverage Ratios Financial Operating Composite -Debt. Equity Ratio -Debt to Total Capital Ratio -Interest Coverage Ratio -Capital Inventory Turnover In Ratio. Debtors Ratio Fixed Total Working Payables Ratio Capital Turnover Ratio Turnover Ratio Turnover Ratio Gearing Turnover Ratio. Sales. Turnover Gross Profit Ratio. Operating Ratio. Assets Operating Profit Ratio. Expenses Ratio investments on Investments. Employed Return on capital. Return on Equity Capital. Return Resources Earning per share. Price Earning Ratio. CASH-FLOW STATEMENT A cash flow statement is a statement showing inflows (receipts) and outflows (payments) of cash during a particular period. In other words, it is a summary of sources and applications of each during a particular span of 87 on total Asset Net Profit Ratio. Capital In relation to Turnover Return Relation to Activity Ratios Profitability Ratios

-Inventory Turnover Ratio

time. Objectives of Cash Flow Statement : 1. Useful for Short-Term Financial Planning. 2. Useful in Preparing the Cash Budget. 3. Comparison with the Cash Budget. 4. Study of the Trend of Cash Receipts and Payments. 5. It explains the Deviations of Cash from Earnings. 6. Helpful in Ascertaining Cash Flow from various Separately. 7. Helpful in Making Dividend Decisions. BALANCE SHEET OF ICICI BANK LTD As On Mar 2008,Mar 2009,Mar 2010,Mar2011,Mar2012. 2008 CAPITAL AND LIABILITIES: Total Share 1086.75 Capital Equity Capital Share Application Money Preference Share 350.00 Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities And Provisions 88 11813.20 0.00 12899.97 99818.78 33544.50 146263.25 21396.17 350.00 21316.16 0.00 22555.99 165083.17 38521.91 226161.17 25227.88 350.00 23413.92 0.00 24663.26 230510.19 51256.03 306429.48 38228.64 350.00 45357.53 0.00 46820.21 244431.05 65648.43 356899.69 42895.39 350.00 48419.73 0.00 49883.02 218347.82 67323.69 335554.53 43746.43 Share 736.75 0.02 1239.83 889.83 0.00 1249.34 899.34 0.00 1462.68 1112.68 0.00 1463.29 1113.29 0.00 2009 2010 (Rs. In crores) 2011 2012

Total Liabilities

167659.42

251388.95

344658.12

399795.08

379300.96

ASSETS: Cash Balances RBI Balances

And 6344.90 With With 6585.07

8934.37

18706.88

29377.53

17536.33

8105.85

18414.45

8663.60

12430.23

Banks,Money At Call Advances Investments Gross Block Accumulated 91405.15 50487.35 5525.65 1487.61 146163.11 71547.39 5968.57 1987.85 3980.72 147.94 12509.57 251388.95 195865.60 91257.84 6298.56 2375.14 3923.42 189.66 16300.26 344658.11 225616.08 111454.34 7036.00 2927.11 4108.89 0.00 20574.63 399795.07 218310.85 103058.31 7443.71 3642.09 3801.62 0.00 24163.62 379300.96

Depreciation Net Fixed Assets 4038.04 Capital Work In 96.30 Progress Other Assets Total Assets 8702.59 167659.40

Contingent

97507.79

119895.78 15025.21 249.55 28.55 889823901

177054.18 22717.23 270.37 34.59 899266672

371737.36 29377.55 417.64 37.37 1112687495

803991.92 36678.71 445.17 33.78 1113250642

liabilities Bills for 9803.67 collection Book 170.35

value(Rs.) EPS 27.22 No. of 736716094 equity shares

89

PROFIT AND LOSS ACCOUNT OF ICICI BANK LTD. Ended Mar 2008,Mar 2009,Mar 2010,Mar2011,Mar2012. (Rs. In Crores) 2008 INCOME: Interest Earned Other Income Total Income EXPENDITURE: Interest Expended Operating Expenses Total Expenses Operating Profit 9409.90 3416.14 12826.04 6570.89 3299.15 9870.04 2956 2009 13784.49 4983.14 18767.63 9597.45 4479.51 14076.96 4690.67 2010 22994.29 5929.17 28923.46 16358.50 6690.56 23049.06 5874.40 2011 30788.34 8810.77 39599.11 23484.24 8154.18 31638.42 7960.69

For The Year

2012 31092.55 7603.72 38696.27 22725.93 7045.11 29771.04 8925.23 90

Other

Provision 428.80 522 2005.20 0.00 53.09 2058.29 0.00 632.96 90.10

1594.07 556.53 2540.07 0.00 188.22 2728.29 0.00 759.33 106.50

2226.36 537.82 3110.22 0.00 293.44 3403.66 0.00 901.17 153.10

2904.59 898.37 4157.73 0.00 998.27 5156.00 0.00 1227.70 149.67

3808.26 1358.84 3758.13 (0.58) 2436.32 6193.87 0.00 1224.58 151.21

And Contigencies Provision For Tax Net Profit Extraordinary Items Profit B/F Total Preference Dividend Equity Dividend Corporate Dividend Tax Pershare Data Eps(Rs.) Equity

27.22 85.00

28.55 85.00 249.55 248.69 1320.34 865.83

34.59 100.00 270.37 1351.12 0.00 1054.27

37.37 110.00 417.64 1342.31 0.01 1377.37

33.78 110.00 445.17 2008.42 0.01 1375.79

Dividend(%) Book Value(Rs) 170.35 Appropriations Transfer To 547.00 Statutory Reserve Transfer To Other 600.01 Reserve Proposed Dividend/Transfer To Govt Balance C/F To 188.22 Balance Sheet Total 2058.29 723.06

293.44 2728.30

998.27 3403.66

2436.32 5156.01

2809.65 6193.87

FINANCIAL STATEMENT ANALYSIS

Comparative Balance Sheet Of ICICI Bank PARTICULARS 2008-2009 2009-2010 (Rs. in crores) 2010-2011 2011-2012

91

Absolute change CAPITAL AND LIABILITIES: Capital 153.08 Reserves and 9502.96 surplus Deposits 65264.39

of Absolute change

of Absolute change

of Absolute change

of

change

change

change

change

14 80 65 15 18

9.51 2097.76 65427.02 12734.12 13000.76

0.8 10 40 33 51.5

213.34 21943.61 13920.86 14392.4 4666.75

17 94 6 28 12

0.61 3062.2 (26083.23 ) 1675.26 851.04

.04 7 (11) 2.5 2

Borrowings 4977.41 Other Liabilities 3831.71 and Provisions

TOTAL CAPITAL AND LIABILITIES ASSETS: Investments Advances Fixed assets Capital Work In Progress Current assets TOTAL ASSETS:

83729.55

50

93269.17

37

55136.96

16

(20494.12 )

(5.1)

21060.04 54757.96 (57.32) 51.64 7917.23 83729.55

42 60 (1.4) 54 37 50

19710.45 49702.49 (57.3) 41.72 23871.8 93269.16

27.5 34 (1.4) 28.2 81 37

20196.5 29750.48 185.47 (189.66) 5194.17 55136.96

22 15 5 -100 10 16

(8396.03) (7305.23 (307.27) 0.00 (4485.58) (20494.11 )

(7.5) (3.25) (7.5) 0.00 (8) (5.1)

Interpretation The capital of bank increased by 14% in 2007-08,0.8% in 200607,17% in 2007-08,and .04 % in 2010-11.This shows that there is fluctuation in the rate of increase in the capital. In 2007-08 and 2008-09 the rate of increase in capital is more than that of 2009-10 and 2010-11.

92

 There is a huge fluctuation in the rate of increase in reserves and surplus also. This shows that bank is effectively utilizing its reserves and surplus. In 2005-06 deposits increase by 65%,in 2008-09it increased by 40%,and an increase of 6% in 2007-08.in 2008-09 deposits fall by 11%.this shows that the bank has repayed its deposits in this year. The borrowings are also showing a fluctuating rate of increase.in 2008-09 the borrowings have increased at a very low rate.this shows that bank has repaid a large amount of borrowings in this year and thereby reducing the dependence on outside debt. The investments are also increasing but with lower rates compared to the preceding years. Similarly advances rose by 60% in 2007-08an increase of 34% in 2006-07,15% increase in 2007-08 and finally decresed by 3.25% in 2008-09. Thre has been a consistent decline in the fixed assets over years.in 2005-06 and 2008-09it decreased by 1.4 % ,increased by 5% in 2007-08 and again decreasing by 7.5% in 2008-09.this is mainly due to increase in the rate of depreciation in the subsequent years. A huge fluctuation is revealed from current assets. it increased by 37% in 2007-08rate of increase rose to 80% in 2008-09and then the it increased at a much lower rate i.e at 10%.this shows that the bank is effectively ustilising its working capital.there is a fall in current assets in 2008-09 by 8 %.this is mainly due to the repayment of deposits in the years 2008-09. 93

1. Comparative Income Statement Of ICICI Bank From (Rs. in PARTICULARS crores) 2008-2009 Absolute % change INCOME: 2009-2010 of Absolute % change 2010-2011 of Absolute % change 2011-2012 of Absolute % of change change

change

change

change

Operating income 5941 EXPENDITURE Interest expended 3026.56 Operating 1180.36 expenses Total expenses Operating profit Provision 4206.92 1734.67

46.3 46 36 43 59 126.1

10156 6761.05 2211.05 8972.1 1183.73 613.58

54.1 70.4 49.3 64 25.2 28.5

10676 7125.74 1463.62 8589.36 2086.29 1038.78

37 43.5 22 37.2 35.5 37.5

(902.84) (758.31) (1109.07 (1867.38 ) 964.54 1364.14

(2.3) (3) (14) (5.9) 12.1 36

and 1199.8

contigencies Net profit for the year Extraordinary items Profit forward TOTAL PROFIT/(LOSS 0.00 brought 135.13 670 254.5 32.55 105.22 675.37 56 25 704.83 1752.34 21 51.4 1438.05 1037.87 144 20 0.00 0.00 0.00 0.00 0.00 (0.58) 0.00 534.87 27 570.15 22.4 1047.51 34 (399.6) (10)

94

Interpretation: The net profit shows a fluctuating trend i.e it increased by 27% in 2007-0822.4% increase in 2006-07,and increased by 34% in 2007-08 and finally if falls by 10% in200809.this may be due to decline in operating income and inresed tax liability in the year 2008-09. The interest expenses from the period 2005 to 2008 showed an increasing trend but decresed in 2008-09 due to repayment of borrowings. 2. TREND ANALYSIS Trend Percentage Of ICICI Bank From 2006-2007To 2009-2010 Percentage(%) figures Particulars Deposits Advances Net profit 2008 100 100 100 2009 165 160 127 2010 231 214 155 2011 245 247 207 2012 219 239 187

Trend graph of ICICI Bank

300 250 percentage(%) 200 150 100 50 0 2005 2006 2007 Years 2008 2009 DEPOSITS ADVANCES NET PROFIT

95

Interpretation: There is a continous increase in the deposits till the year ending 2008 followed by a downfall in the year ending 2009 due to repayment od deposits in this year. Similarly advances also shows as increasing trend till the year ending 2008 followed by a slight downfall in the year ending 2009. There has been a substantial increase in net profit till the year year ending 2008.In four years it has been more than double. The overall performance of the bank is satisfactory. 3. RATIO ANALYSIS CURRENT RATIO: An indication of a company's ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is. Current ratio is equal to current assets divided by current liabilities. If the current assets of a company are more than twice the current liabilities, then that company is generally considered to have good short-term financial strength. If current liabilities exceed current assets, then the company may have problems meeting its short-term obligations. CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

96

Year 20071.6 2008 1.4 2009 20101.2 2011 1

Ratio 0.8 0.6 0.4 0.2 0

Current Ratio of ICICI Bank for the period of Current Assets Current Liabilities Current Ratio 2005-2009
(Rs. In crores) 21632.56 29549.79 53421.59 1.17 58615.76 1.01 54130.18 (Rs. In crores) 21396.16 1.39 25227.88 1.36 38228.64 42895.38 43746.43 1.01 1.17 1.23 1.39 1.36 1.23
Current Ratio

2005 2006 2007 Years 2008 2009

Interpretation: An ideal solvency ratio is 2. The ratio of 2 is considered as a safe margin of solvency due to the fact that if current assets are reduced to half (i.e.) 1 instead of 2, then also the creditors will be able to get their payments in full. But here the current ratio is less than 2 and more than 1 which shows that the bank have current assets just equal to the current liabilities which is not satisfactory as the safety margin is very less or zero. Therefore the bank should keep more current assets so that it can maintain a satisfactory safety margin.

LIQUID RATIO: Liquid ratio is also known as Quick or Acid Test Ratio. Liquid assets refer to assets which are quickly convertible into cash. Current Assets other stock and prepaid expenses are considered as quick assets. Quick Ratio = Total Quick Assets

97

Total Current Liabilities Quick Assets = Total Current Assets Inventory

Liquid Ratio of ICICI Bank for the period of 2005-2009 1.2 1 0.8 Ratio 0.67 0.6 0.4 0.2 0 2005 2006 2007 Years 2008 2009 0.6 0.97 0.88 0.68 Liquid Ratio

2007 2008 2009 2010 2011 Interpretation:

12929.97 17040.22 37121.33 38041.13 29966.56

21396.16 25227.88 38228.64 42895.38 43746.43

0.60 0.67 0.97 0.88 0.68

A quick ratio of 1:1 is considered favourable because for every rupee of current liability,there is atleast one rupee of liquid assets. A higher value of ratio is considered favourable. Here this ratio is less than 1 in 2005,2006 & 2009 but in 2007 & 2008 it is close to 1 which is not satisfactory. This means the bank has not managed its funds properly in this particular period.Therefore bank should rationally utilise its funds to maintain an ideal liquid ratio. EARNING PER SHARE: 98

In order to avoid confusion on account of the varied meanings of the term capital employed, the overall profitability can also be judged by calculating earning per share with the help of the following formula: Earning Per Equity Share = Net Profit after Tax Prefrence Dividend No. of Equity shares The earning per share of the company helps in determining the market price of the equity shares of the company. A comparison of earning per share of the company with another will also help in deciding whether the equity share capital is being effectively used or not. It also helps in estimating the companys capacity to pay dividend to its equity shareholders.
Earnings Per Share Ratio of ICICI Bank for the period of 2005-2009
40 35 30 Ratio 25 20 15 10 5 0 2005 2006 2007 Years 2008 2009 Earnings Per Share 27.22 28.55 34.59 37.37 33.78

Year

Net Income Available For No. Of Equity Shares Shareholders (Rs. In crores) 73.6716 88.9823 89.9266 111.2687 111.325 (Rs. In crores) 2005.2 2540.07 3110.22 4157.73 3758.13

EPS

2007 2008 2009 2010 2011

27.22 28.55 34.59 37.37 33.78

Interpretation:

99

Earning Per Share is the most commonly used data which reflects the performance and prospects of the company.It affects the market price of shares. Here the Earning Per Share is shows a persistent increase till the year 2008 after that in the year 2009 Earning Per share is followed by a downfall due to decline in profits. DIVIDEND PER SHARE : It is expressed by dividing dividend paid to equity shareholders by no. of equity shares.this shows the per share dividend given to equity shareholders.It is very helpful for potential investors to know the dividend paying capacity of the company.It affects the market value of the company. Dividend Per Share = Dividend Paid To Equity Shareholders No. Of Equity Shares

Dividend Per Share Ratio of ICICI Bank for the period of 2005-2009
12 10 8 Ratio 6 4 2 0 2005 2006 2007 Years 2008 2009 10.02 8.59 8.53 Dividend Per Share Ratio 11.03 11

Year

Dividend Paid (Rs. In crores) 632.96

No. Shares

Of

Equity DPS

2005

(Rs. In crores) 73.6716

8.59

100

2006 2007 2008 2009 Interpretation:

759.33 901.17 1227.7 1224.58

88.9823 89.9266 111.2687 111.325

8.53 10.02 11.03 11

Here the Dividend Per Share is increasing year after year except a little decline in 2009.otherwise the dividend per share ratio of the bank is quite satisfactory which shows the bank has a good dividend paying capacity. NET PROFIT RATIO: This ratio indicates the Net margin on a sale of Rs.100. It is calculated as follows: Net Profit Ratio = Net Profit X 100 Net Sales This ratio helps in determining the efficiency with which affairs of the business are being managed. An increase in the ratio over the previous period indicates improvement in the operational efficiency of the business. The ratio is thus on effective measure to check the profitability of business.

101

Net Profit Ratio of ICICI Bank for the period of 2005-2009 25 21.3 20 18.42 13.52 13.5

Ratio(%)

15 10

12.08

Net Profit Ratio

5 0 2005 2006 2007 Years 2008 2009

Year 2007 2008 2009 2010 2011

Net Profit (Rs. In crores) 2005.2 2540.07 3110.22 4157.73 3758.13

Sales (Rs. In crores) 9409.9 13784.49 22994.29 30788.34 31092.55

Net Profit Ratio (in %) 21.3 18.42 13.52 13.5 12.08

Interpretation: Although both the sales and net profit have increased during the above period but the Net Profit Ratio of the bank is declining continuously. This is because of the reason that net profits have not increased in the same proportion as of the sales. OPERATING PROFIT RATIO: This ratio is calculated as follows: Operating Profit Ratio = Operating Profit X100 Net Sales

102

The difference between net profit ratio and net operating profit ratio is that net operating profit is calculated without considering non-operating expenses and non-operating incomes. If we deduct this ratio from 100,the result will be operating ratio. Higher operating profit ratio enable the organization to recoup non-operating expenses out of operating profits and provide reasonable return.
Operating Profit Ratio of ICICI Bank for the period of 2005-2009
40 35 30 Ratio 25 20 15 10 5 0 2005 2006 2007 Years 2008 2009 Operating Profit Ratio 34.02 31.41 28.7 25.54 25.85

Year 2007 2008 2009 2010 2011 Interpretation:

Operating Profit (Rs. In crores) 2956 4690.67 5874.4 7960.69 8925.23

Sales (Rs. In crores) 9409.9 13784.49 22994.29 30788.34 31092.55

Operating Ratio (in %) 31.41 34.02 25.54 25.85 28.7

Profit

In the year 2005 & 2006 the operating profit is 31.41% & 34.02% respectively. After that it has been consistently declined from the year 2007 till 2008 and again gaining momentum in 2009. This may be due to the reason that operating expenses have been increased more as compared to

103

sales during the above period consequently reducing the operating profits.Therefore the bank should check on unnecessary operating expenses to correct this situation and to provide a sufficient return. RETURN ON NET WORTH: It measures the profitability of the business in view of the shareholders. It judges the earning capacity of the company and the adequacy of return on proprietors funds.Shareholders and potential investors are interested in this ratio.It is calculated as below: Return On Net Worth = Net Profit After Interest And Tax x 100 Shareholders Funds

Return On Net Worth Ratio of ICICI Bank for the period of 2005-2009
18 16 14 12 Ratio 10 8 6 4 2 0 2005 2006 2007 Years 2008 2009 11.26 15.54 12.61 8.88

7.53

Return On Net Worth

Year

Net

Profit

After Shareholder's Fund (Rs. In crores) 12899.97 22555.99

Return On Net Worth (in %) 15.54 11.26

Interest And Tax 2007 2008 (Rs. In crores) 2005.2 2540.07

104

2009 2010 2011

3110.22 4157.73 3758.13

24663.26 46820.21 49883.02

12.61 8.88 7.53

Interpretation: The net profit after interest and tax have increased slowly till the year 2008 followed by a downfall due to high interest payments,operating expenses and taxation liability.consequently the networth ratio has declined considerably and has reduced to more than half in the year 2009 than it was in 2005. RETURN ON CAPITAL EMPLOYED: It establishes relationship between profit before interest and tax and capital employed. It indicates the percentage of return on the total capital employed in the business.This ratio is also known as Return On Investment. It measures the overall efficiency and profitabilityof the business in relation to investment made in business. It also shows how efficiently the resources are used in the business.comparison of one unit with that of the other or performance in one year with that of the same unit is possible. It is calculated as below:

Return On Capital Employed of ICICI Bank for the period of 2005-2009

9 8 7 6 Ratio 5 4 3 2 1 0 2005 2006 2007 Years 2008 2009 Return On Capital Employed 6.22 5.61 6.52 7.99 8.29

105

Year

Net

Profit

Before Capital Employed (Rs. In crores) 146263.25 226161.17 306429.48 356899.69 335554.53

Return

On

Capital

Interest And Tax 2007 2008 2009 2010 2011 (Rs. In crores) 9098.09 12694.05 20006.54 28540.34 27842.9

Employed (in %) 6.22 5.61 6.52 7.99 8.29

Interpretation: The above table exhibit the return on capital employed ratio of the bank for last five years.This ratio measures the earning of the net assets of the business. The ratio was 6.22% in year 2005. After that it rised to the tune of 5.61%,6.52%,7.99% and 8.29% in year 2006, 2007, 2008 and year 2009 respectively. It lead to the conclusion bank rising but very little proportion of return on capital employed. DEBT- EQUITY RATIO: The Debt-Equity ratio is calculated to find out the long-term financial position of the firm.This ratio indicates the relationship between long-term debts and shareholders funds.The soundness of long-term financial policies of a firm can be determined with the help of this ratio. It helps to assess the soundness of long-term financial policies of a business.It also helps to determine the relative stakes of outsiders and shareholders.Long-term creditors can assess the security of their funds in a business.it indicates to what extent a firm depends upon lenders to meet its long-term financial requirements.A low Debt-Equity ratio is considered better from the point of view of creditors.

106

Debt Equity ratio of ICICI Bank for the period of 2005-2009

14 12 10 Ratio 8 6 4 2 0 2005 2006 2007 Years 2008 2009 11.99 10.14 7.53 12.97

6.6

Debt Equity Ratio

Year 2007 2008 2009 2010 2011

Debt (Rs. In crores) 154759.45 228832.96 319994.86 352974.87 329417.94

Equity (Rs. In crores) 12899.97 22555.99 24663.26 46820.21 49883.02

Debt Equity Ratio 11.99 10.14 12.97 7.53 6.6

Interpretation: The ratio shows the extent to which funds have been provided by long-term creditors as compared to the funds provided by the owners.Here the Debt-Equity ratio for the above period is always high.this shows that the bank is more relying on outside funds as compared to internal sources of capital,in its capital structure. From the long-term lenders point of view this ratio is not satisfactory. PROPRIETORY RATIO: It is also called shareholders equity to total equity ratio or net worth to total assets ratio or equity ratio.It compares the shareholders funds to total assets.It is calculated by dividing shareholders funds by total assets.

107

Proprietory Ratio = Shareholders Fund Total Assets It helps to determine the long-term solvency of a company.This ratio measures the protection available to the creditors.Higher the ratio,lesser is the likelihood of insolvency in future,as the management has to use lessor debts and vice versa.Thus,this ratio is of great importance to the creditors.

Proprietory Ratio of ICICI Bank for the period of 2005-2009

0.14 0.12 0.1 Ratio 0.08 0.06 0.04 0.02 0 2005 2006 2007 Years 2008 2009 0.07 0.08 0.12 0.13

0.07

Proprietory Ratio

Years 2007 2008 2009 2010 2011

Shareholder's Funds (Rs. In crores) 12899.97 22555.99 24663.26 46820.21 49883.02

Total Assets (Rs. In crores) 167659.4 251388.95 344658.11 399795.07 379300.96

Proprietory Ratio 0.07 0.08 0.07 0.12 0.13

Interpretation: Above table exhibits the proprietary ratio of the bank for last five years . It was 7% in 2005,After that was 8% in year 2006. Similarly it was once again reduced to 7 % in the year

108

2007. After 2007 it registered increase and was 12% and 13% in the year 2008 and 2009 respectively. Hence it leads to the conclusion owners have less than 13% stake in the total assets of the bank. It is not a good sign as far the long term solvency is concerned. FIXED ASSETS TURNOVER RATIO: It is also called as Sales to Fixed Assets Ratio.It measures the efficient use of fixed assets.This ratio is a measure of efficient use of fixed assets.it is calculated as: Fixed Assets Turnover Ratio = Cost of goods sold or Sales Net Fixed Assets It measures the efficiency and profit earning capacity of the business.Higher the ratio,greater is the intensive utilization of fixed assets and a lower ratio shows under utilization of the fixed assets.This ratio has a special importance for manufacturing concerns where investment in fixed assets,is vey high and the profitability is significantly dependent on the utilization of these assets.

Fixed assets Turnover Ratio of ICICI Bank for the period of 2005-2009
9 8 7 6 5 4 3 2 1 0 7.49 5.86 3.46 2.33 Fixed assets Turnover Ratio 8.17

Ratio

2005

2006

2007 Years

2008

2009

Year

Sales

Net Fixed Assets

Fixed

Assets

109

2007 2008 2009 2010 2011

(Rs. In crores) 9409.9 13784.49 22994.29 30788.34 31092.55

(Rs. In crores) 4038.04 3980.72 3923.42 4108.89 3801.62

Turnover Ratio 2.33 3.46 5.86 7.49 8.17

Interpretation: Here the fixed assets employed in the business shows a decreasing trend except in the year 2008 where fixed assets have again increased.This may be due to increase in rate of depreciation in subsequent years. Neverthless,the fixed assets turnover ratio has been consistently increasing.It indicates that fixed assets have been effectively used in the business without much additional investment in the period of study and also the capital is not blocked in fixed assets.

CREDIT-DEPOSIT RATIO: This ratio is very important to assess the credit performance of the bank. The ratio shows the relationship between the amount of deposit generated by the bank has well as their deployment towards disbursement of loan and advances. Higher credit deposit ratio shows overall good efficiency and performance of any banking institution.
Credits 100 Deposits

Credit Deposit Ratio =

Credit means disbursement of advances Deposit mean sum of fixed deposit, Saving deposit and current deposit.

110

Credit Deposit ratio of ICICI bank for the period of 2005-2009

1.05 1 Ratio 0.95 0.9 0.85 0.8 0.75 2005 2006 2007 Years 2008 2009 0.91 0.88 0.84 0.92 Credit Deposit ratio 0.99

Year 2007 2008 2009 2010 2011

Advances (Rs. In crores) 91405.15 146163.11 195865.6 225616.08 218310.85

Deposits (Rs. In crores) 99818.78 165083.17 230510.19 244431.05 218347.82

Credit Deposit Ratio (in%) 91 88 84 92 99

Interpretation: Above table exhibits credit deposit ratio of the bank during last 5 years. In the year 2005 ratio was 91% and it declined to 88% and 84%in the year 2006 and 2007 respectively. In the year 2008 and 2009 ratio was increased to 92% and 99% respectively. it leads to conclusion that credit performance of the bank is very good. 4. CASH FLOW STATEMENT OF ICICI BANK 2007 2,527.20 9,131.72 -3,445.24 -1,227.13 2008 3,096.61 4,652.93 -7,893.98 7,350.90 2009 3,648.04 23,061.95 -18,362.67 15,414.58 2010 5,056.10 2011 5,116.97

Profit before tax Net cashflow-operating activity Net cash used in fin.

-11,631.15 -14,188.149 -17,561.11 3,857.88 29,964.82 1,625.36

investing activity Netcash used in activity

111

Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year

4,459.34 8,470.63 12,929.97

4,110.25 12,929.97 17,040.22

20,081.10 17,040.22 37,121.32

683.55 37,357.58 38,041.13

-8,074.57 38,041.13 29,966.56

Chapter 5
FINDINGS,SUGGESTIONS & CONCLUSION

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Findings
Profit before tax for the year ended March 31, 2009 (FY2009) was Rs. 5,117 crore (US$ 1,009 million), compared to Rs. 5,056 crore (US$ 997 million) for the year ended March 31, 2008 (FY2008). Profit after tax for FY2009 was Rs. 3,758 crore (US$ 741 million) compared to Rs. 4,158 crore (US$ 820 million) for FY2008 due to the higher effective tax rate on account of lower proportion of income taxable as dividends and capital gains. Net interest income increased 15% from Rs. 7,304 crore (US$ 1,440 million) for FY2008 to Rs. 8,367 crore (US$ 1,650 million) for FY2009. While the advances declined marginally year-on-year, the net interest income increased due to improvement in net interest margin from 2.2% in FY2008 to 2.4% in FY2009. Operating expenses (including direct marketing agency expenses) decreased 14% to Rs. 6,835 crore (US$ 1,348 million) in FY2009 from Rs. 7,972 crore (US$ 1,572 million) in FY2008. The cost/average asset ratio for FY2009 was 1.8% compared to 2.2% for FY2008. During the year, the Bank has pursued a strategy of prioritizing capital conservation, liquidity management and risk containment given the challenging economic environment. This is reflected in the Banks strong capital adequacy and its focus on reducing its wholesale term deposit base and increasing its CASA ratio. The Bank is

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maintaining excess liquidity on an ongoing basis. The Bank has also placed strong emphasis on efficiency improvement and cost rationalization. The Bank continues to invest in expansion of its branch network to enhance its deposit franchise and create an integrated distribution network for both asset and liability products. In line with the above strategy, the total deposits of the Bank were Rs. 218,348 crore (US$ 43.0 billion) at March 31, 2009, compared to Rs. 244,431 crore (US$ 48.2 billion) at March 31, 2008. The reduction in term deposits by Rs. 24,970 crore (US$ 4.9 billion) was primarily due to the Banks conscious strategy of paying off wholesale deposits. During Q4-2009, total deposits increased by Rs. 9,283 crore (US$ 1.8 billion), of which Rs. 5,286 crore (US$ 1.0 billion), or about 57%, was in the form of CASA deposits. The CASA ratio improved to 28.7% of total deposits at March 31, 2009 from 26.1% at March 31, 2008. The branch network of the Bank has increased from 755 branches at March 31, 2007 to 1,438 branches at April 24, 2009. The Bank is also in the process of opening 580 new branches which would expand the branch network to about 2,000 branches, giving the Bank a wide distribution reach in the country. In line with the strategy of prioritizing capital conservation and risk containment, the loan book of the Bank decreased marginally to Rs. 218,311 crore (US$ 43.0 billion) at March 31, 2009 from Rs. 225,616 crore (US$ 44.5 billion) at March 31, 2008. Liquidity position The liquid ratio of the bank in the year 2005,2006 and 2009 is 0.60,0.67and 0.68 respectively and the year 2007 and 2008 liquid ratio is 0.97 and 0.88 respectively which is close to 1.Though it is not equal to the ideal liquid ratio of 1:1 but still its under control. So in nut shell, it can be concluded that the liquidity position of the bank is quite satisfactory. Capital adequacy and return on capital employed The Banks capital adequacy at March 31, 2009 as per Reserve Bank of Indias revised guidelines on Basel II norms was 15.5% and Tier-1 capital adequacy was 11.8%, well above

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RBIs requirement of total capital adequacy of 9.0% and Tier-1 capital adequacy of 6.0%. The above capital adequacy takes into account the impact of dividend recommended by the Board. Also the capital is being effectively utilized in the bank as it shows better return on capital employed over years. Asset quality At March 31, 2009, the Banks net non-performing asset ratio was 1.96%. During the year the Bank restructured loans aggregating to Rs. 1,115 crore (US$ 220 million). Dividend on equity shares Since the dividend per share has shown a promising increase for the period under study.It shows that the bank is following a sound dividend policy and is capable of distributing higher dividends.in this way the investors will feel investing in capital of the bank a much beneficial option and will be reluctant to withdraw capital for a long time. Earnings per share The earnings per share for the period under study also shows a promising increase.it suggests that bank has better profitability position and in future it can be a better or attractive channel of investment for shareholders. Higher trends of credit deposit ratio A positive sign High trends of credit deposit ratio reveals that bank has performed satisfactorily as regard to granting loans and advances to generate income. It suggests that credit performance is good and the bank is doing its business good by fulfilling its major objective as regards to granting loans and accepting deposits.

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Conclusion
On the basis of various techniques applied for the financial analysis of ICICI Bank we can arrive at a conclusion that the financial position and overall performance of the bank is satisfactory. Though the income of the bank has increased over the period but not in the same pace as of expenses. But the bank has succeeded in maintaining a reasonable profitability position. The bank has succeeded in increasing its share capital also which has increased around 50% in the last 5 years. Individuals are the major shareholders. The major achievement of the bank has been a tremendous increase in its deposits, which has always been its main objective. Fixed and current deposits have also shown an increasing trend. Equity shareholders are also enjoying an increasing trend in the return on their capital. Though current assets and liabilities (current liquidity) of the bank is not so satisfactory but bank has succeeded in maintaining a stable solvency position over the years. As far as the ratio of external and internal equity is concerned, it is clear that bank has been using more amount of external equity in the form of loans and borrowings than owners equity. Banks investments are also showing an increasing trend. Due to increase in advances, the interest received by the bank from such advances is proving to be the major source of income for the bank.

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Suggestions
Although the short term liquidity position is quite satisfactory as per revealed by liquid ratio but the current ratio is below the ideal ratio of 2:1.So the bank should make efforts to increase its current assets to maintain a safety margin and to maintain a better liquidity position. The profitability of the bank for the period under study is not satisfactory. Profits are increasing but not with same pace as of the expenditure due to higher reliance on debt capital in the form of borrowings and loans for financing capital structure. So in order to improve profitability, the bank should reduce its dependence on external equities for meeting capital requirements. Consequently, the interest expenses will decline and profits will increase which is good for the bank. Similarly non productive expenses should be curtailed to improve profitability. Higher trend of credit deposit ratio reveals that the bank has performed satisfactorily as regard to granting loans and advances to generate income. It suggests that the credit performance of bank is good and it is performing its business well by fulfilling the major objective of granting credit and accepting deposit. So in order to have more creditability in the market the bank should maintain its credit deposit ratio.

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 Though the bank has been successful in increasing its deposits but to further improve upon such situation it can introduce some new and attractive schemes for public. Such schemes can be in the form of higher rate of interest and shorter maturity period for FDs etc. Bank should try to finance more and more projects. Financing will help it to earn higher amount of profits. The bank is having a greater reliance on debt capital. The increasing reliance on external equities may prove hazardous in the long run. So in order to remedy this situation bank should increase its focus on internal equities and other sources of internal financing. Bank can also think for improving its day-to -day service to its clients. Such service can be improved by providing prompt service and showing an attitude of co-operation to its clients. It will help to give a kind of confidence to the public and build a better public image. To achieve the objective of Rural development it should open more and more branches in different rural areas of the country. It will facilitate in providing help to rural poor farmers and other living below the poverty line. Bank can appoint commission agents for different area who can encourage general public to invest in the capital of the bank and make more deposits in ICICI Bank. The bank should simplify the procedure of advances for quick disbursement. To achieve organizational success a proper independent working atmosphere should be developed to achieve desired objective more effectively. Last but not least, bank should adopt branch automation experiment to control the operational cost.

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CHAPTER 6 BIBLIOGRAPHY

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BIBLIOGRAPHY
Books Reffered: Accountancy. R.K. Mittal,A.K.Jain. Financial Management- Theory and Practice. Shashi.K.Gupta , R.K. Sharma. Essentials of Corporate Finance 2nd edition ,Irwin /McGraw-Hill.Ross, S.A.,R.W. Westerfield and B.D. Jordan. Basic Financial Management ,8th edition ,Prentice -Hall,Inc. Scott, D.F., J.D Martin, J.W. Petty and A.Keown. Internet websites: Www.Icicibank.Com Www.Moneycontrol.Com WWW.Money.Rediff.Com 120

 Www.Wikipedia.Org Www.Google.Com Www.Scribd.Com Www.Managementparadise.Com

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