PROJECT REPORT

ON
"FINANCIAL ANALYSIS"
OF

Submitted to H.P university, Shimla

In the partial fulfillment of
Award of the degree of
Bachelor of business administration

Submitted by: Under the Guidance of:

GAURAV NARANG MR. ANKUR MAHAJAN
Lecturer, B.B.A,
University Roll no. 4329 Govt. college, Dharmshala.

Dept. of business administration

Govt. post graduate college, Dharmshala(H.P)
2007-10
 CERTIFICATION LETTER

OF BUSINESS
$20

Govt.
College,Dharmshala

To WHOM IT MAY CONCERN

This is to certify that the Project Report entitled "FINANCIAL ANALYSIS OF ICICI
Bank" has been completed by: GAURAV NARANG" under my supervision. To the best
of my knowledge, this is his own work and he has not submitted the same elsewhere for
the award of any other degree or diploma.

I approve it for submission in the partial fulfillment of the requirement for the degree of
Bachelor of Business Administration.

Date
Mr.Ankur M ahaj an
(Project Guide)
Place Lecturer B.B,A,
Govt.College,Dharmshala

Gaurav Narang 2
B.B.A
 ACKNOWLEDGEMENT

No task is single man's effort *Any job in this world however trivial or tough cannot be
accomplished without the assistance of others. An assignment puts the knowledge and
experience of an individual to litmus test There is always a sense of gratitude that one likes
to express towards the persons who helped to change an effort in a success. The opportunity
to express my indebmess to people who have helped me to accomplish this task.

I deem it a proud privilege to extend my greatest sense of gratitude to my Project Guide

MR. ANKUR MAHAJAN (lecturer BBA) for the keen interest, inspiring guidance,
continuous encouragement, valuable suggestions and constructive criticism throughout the
pursuance of this report.

I am thankful to Coordinator sir DR. UTTAM CHAND for giving me the opportunity to
undertake the study. I am highly indebted to MR. DINESH JAM WAL (PROF.
REGIONAL for sparing time from their busy schedule for
providing me With their able guidance at the time of need and helping me to achieve the
ultimate goal of the study. I would also like to thank MR. RAJ (Branch Manager, ICICI
Bank, Dharmshala) for their valuable support in helping me to gain this opportunity of
being associated with an organization of such esteeme

Last but not the least, it would be unfair if I don't express my indebtness to my parents and
all my friends for their active cooperation which was of great help during the course of my
training project,

PREFACE

In any organization, the two important financial statements are the Balance Sheet and Profit
& Loss Account of the business. Balance Sheet is a statement of financial position of an
enterprise at a particular point of time. Profit & Loss account shows the net profit or net
loss of a company for a specified period of time. When these statements of the last few year
of any organization are studied and analyzed, significant conclusions may be arrived
regarding the changes in the financial position, the important policies followed and trends
in profit and loss etc. Analysis and interpretation of financial statement has now become
an important technique of credit appraisal. The investors, financial experts, management
executives and the bankers all analyze these statements, Though the basic technique of
appraisal remains the same in all the cases but the approach and the emphasis in the analysis
vary. A banker interprets the financial statement so as to evaluate the financial soundness
and stability, the liquidity position and the profitability or the earning capacity of borrowing
concern. Analysis of financial statements is necessary because it helps in depicting the

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financial position on the basis of past and current records. Analysis of financial statements
helps in making the future decisions and strategies. Therefore it is very necessary for every
organization whether it is a financial or manufacturing, to m ake financial statement and to
analyze it.

Table of content
Chapter PARTICULARS Page
no. no.
Acknowledgement 3
Preface 4
1. Introduction Of Banking 6-18
a. Introduction of banking. 7
b. History of banking in India. 8
c. Banks in India 11
d. Fact files of banks in India 17
Indian bankin indus 18
2. Company's Profile 19-55
a. Introduction to ICICI Bank. 21
b. ICICI Bank today. 27
28
c. Business profile 29
30
d. Board of directors.. 31
e, B o ard com m ittee 32
34
f. Business objective 54
g. Technology used in ICICI Bank
h. Products and services..

i. Awards and recognition.

3. Research Methodology 56-62
a. Objective of study 58
58
b. Importance of study.. 59
59
c. Meaning of research. 60
d Research problem 61
62
e. Research design 62

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 f. Data collection method..

g. Analysis and interpretation of data.

h, Lim itation of stud

4. Fin an cial Analysis 63-92

a. Introduction of the topic 64
b. Method,nools of financial analysis.. 67
c. Balance sheet of ICICI Bank. , 73
d. Profit and Loss Account of ICICI Bank
75
e. Financial statement analysis 76
1) Comparative financial 76
statement
79

80
2) Trend analysis.

3) Ratio anal sis....

5. Findin estions And 93-98

Conclusion

6. Bibliography 99-100

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 INTRODUCTION OF BANKING

Definition Of Bank:
Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits
of money from the public, repayable on demand or otherwise and withdraw by cheque,
draft or 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 canying on cmde 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 refened 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.

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 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.

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 periodt 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 Bom bay
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. t 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.

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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 Reform
s.
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 Il and
Phase 111.

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 day's 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.

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B.B.A
Phase 11
Government took major steps in this Indian Banking Sector Reform after independence.

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 camed 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
Bankinglnstitutions 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 111

This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991t under the chairmanship of M Narasimhamt 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.

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B.B.A
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 information's 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 Sector Banks
Foreign Banks In Regional Rural
India Banks

(26) (25) (29) (95)

+ Nationalized Old Private
Bank Banks
Other Public New Private
Sector Banks Banks
(IDBI)
SBI And Its
Associates

(2) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks

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B.B.A
Public Sector Banks
Public sector banks are those banks which are owned by the Governm ent 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 Other SBI & its Associates

Public
State Bank of India
• Allahabad Bank Sector
Andhra Bank Banks State Bank of Hyderabad
Bank Of Baroda
IDBI State Bank of Mysore
• Bank Of India (Industrial
State Bank of Patiala
• Bank Of Maharastra
Development
Bank Of
Canara Bank India)Ltd. State Bank of Travancore
Central Bank Of India
Corporation Bank • State Bank of Bikaner And Jaipur
Dena Bank

• Indian Bank
(State Bank of Saurastra merged with SBI in the
• Indian Overseas Bank year 2008 and State Bank of Indore In 2010)

• Oriental Bank Of
Commerce
Punjab & Sind Bank
Punjab National Bank
Syndicate Bank
UCO Bank
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.

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B.B.A
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 Indtlslnd 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 Developm ent Fmance 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 Com mercial 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:-

Old Private Sector New Private Sector

Banks Banks
Bank of Rajasthan Ltd,
Catholic Syrian Bank Ltd. Bank of Punjab Ltd. (since merged
City Union Bank Ltd. with Centurian Bank)
Dhanalakshmi Bank Ltd* Centurian Bank of Punjab (since
Federal Bank Ltd, merged with HDFC Bank)
ING Vysya Bank L td. Developm ent Credit Bank Ltd.
Jammu and Kashmir Bank Ltd.
Karnataka Bank Ltd. • HDFC Bank Ltd.
Karur Vysya Bank Ltd, • ICICI Bank Ltd.
Lakshmi Vilas Bank Ltd
Nainital Bank Ltd, • Induslnd Bank Ltd.
Ratnakar Bank Ltd. • Kotak Mahindra Bank Ltd.
SBI Commercial and International Bank Axis Bank (earlier UTI Bank)
Ltd.
Yes Bank Ltd,
South Indian Bank Ltd.
Tamilnad Mercantile Bank Ltd.
United Western Bank Ltd.

Foreign

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 ABN AMRO Bank NV. HSBC (Hongkong&
Abu Dhabi Commercial Shanghai Banking
Bank Ltd Corporation)
Am erican Express Bank • JPMorgan
• Antwerp Diamond Bank ChaseBank
• Arab Bangladesh Bank Knmg Thai Bank
Bank International Mashreq Bank
Indonesia Mizuho Corporate
Bank of Am erica Bank Oman
Bank of Bahrain & International
Kuwait Bank
Shinhan
• Bank of Ceylon
Bank
Bank of Nova
Société Générale
Scotia
Sonali Bank
Bank of Tokyo Mitsubishi
Standard Chartered Bank
UFJ
State Bank of Mauritius
Barclays Bank
BNP
Paribas
Calyon
Bank
• ChinaTnmst Commercial
Bank
+ Citibank
•e DBS Bank
Deutsche Bank
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 num bert 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 num ber 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.

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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.

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, tural 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 nrral 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.

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B.B.A
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 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 iven an ISO certification. Canara Bank

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

The first Indian Bank to have been started solely with Indian capital. Punjab National
Bank
South Indian Bank
The first among the Private Sector Banks in Kerala to become Scheduled Bank
in 1946 under the RBI act.

Gaurav Narang 15
B.B.A
 State Bank of India
India's oldest,largest and the most successful commercial bank offering the
widest possible rang of domestic,international and NRI products and services,
through its vast network in India and overseas.

India's 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,
the first to open a branch in continental Europe at Paris in 1974 founded in 1906 in
Mum bai.
Allahabad Bank
The oldest Public Sector Bank in India having branches all over India and
serving the customers for the last 132 years.

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

INDIAN BANKING INDUSTRY

The Indian banking market is growing at an astonishing rate, with Assets expected to reach
US$I trillion by 2010, An expanding economy, middleclass, and technological innovations
are all contributing to this growth.
The country's 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 connnued expansion.

Growth in Indian Banking Assets

342
256

2000 2001 zooz 2003 2004 2005 2006 2008E 2010E

Gaurav Narang 16
B.B.A
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 Il regulation."lndian banking industry assets are expected to
reach US$I 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 indusü•y should focus on having a small number of large players that can compete
globally rather than having a large number of fragmented players.

Chapter 2

COMPANY'S PROFILE

Bank
Type
Private
BSE & NSE:ICICI,
NYSE: IBN
Industry
B anking
Insurance
Capital Markets and allied
11

INTR MGilQlNeTtQdlClcl BANK

Gaurav Narang 17
B.B.A
Headquarters
ICICI Bank Ltd., + History Of1CIC1
ICICI Bank Towers,
+ 1955: The
B andra Kurla,
Industrial
Mum bai India
Credit and
Key people K. V. Kamath Chairman Investment
Chanda Kochhar Managing Corporation of
Director & CEO India Limited
Sandeep Bakhshi, Deputy (ICICI) was
Managing incorporated at
Director the initiative of
N.S. Kannan Executive Director & World Bank,
CFO the
K. Ram kumar Executive Director Government of
Sonjoy Chatterjeet Executive India and
Director representatives
Products of Indian
Loans, Credit Cards Savings, industry, with
Investm ent vehicles, Insurance etc.
the objective of
creating a
development
Revenue A USD 15.06 billion
financial
institution for
Total assets
A USD 120.61 billion (at March providing
31, 2009.) medium -term
and long-term
project
Website financing to
www.icicibank.com
In dian
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 m arkets.
1956 : ICICI declared its first dividend of 3.5 0/0.
1958 : appointed the second Chairman of ICICI L td.
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 ICICL 1977 : ICICI
Gaurav Narang 18
B.B.A
 sponsored the formation of Housing Development Finance Corporation.
Managed its first equity public issue.
1978 : Mr. James Raj appointed the fourth Chairman of ICICL
1979 : MrSiddharth Mehta appointed the fifth Chairman of ICICL
1982 : 1982 : ICICI became the first ever Indian borrower to raise
European Currency Units. : ICICI commences leasing business.
1984 : Mr. S. Nadkami appointed the sixth Chairman of ICICL
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 Com
pany 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.

Gaurav Narang 19
B.B.A
 + 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 Mum bai and
the Reserve Bank of India 111 April 2002. Consequent to the
merger, the ICICI group's financing and banking Operations, both
wholesale and retail, have been integrated in a single entity. At the
same time, ICICI started its international expansion by opening
representative offices in New York and London, In India, ICICI
Bank bought the Shimla and Darjeeling branches that Standard
Chartered Bank had inherited when it acquired Grindlays Bank,

+ 2003 : The first Integrated Currency Management Centre launched in

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

Gaurav Narang 20
B.B.A
 + 2004 : Max Money, a home loan product that offers the dual benefit
of higher eligibility and affordability to a customer, introduced. :
Mobile banking service in India launched in association with
Reliance Infocomm. : India's first multi-branded credit card with
HPCL and Airtel launched. : Kisan Loan Card and innovative, low-
cost ATMs in rural India launched. : ICICI Bank and CNBC TV 18
announced India's first ever awards recognizing the achievements of
SMEs, a pioneering Initiative to encourage the contribution of Small
and Medium Enterprises to the growth of Indian economy. : ICICI
Bank opened its 500th branch in India. : ICICI Bank introduced
parmership model wherein ICICI Bank would forge an alliance with
existing micro finance institutions (MFIs)t 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 timet ICICI opened a representative office in
Bangladesh to tap the extensmve trade between that country, India
and South Africa.

+ 2005 : First rural branch and ATM launched in Uttar Pradesh at

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

Gaurav Narang 21
B.B.A
 + 2006 : ICICI Bank became the first Indian bank to issue hybrid Tier-
I perpetual debt in the international markets. : ICICI Bank subsidiary
set up in Russia, ; Introduced a new product - CNRI smart save
Deposits' a unique fixed deposit scheme for nonresident Indians. :
Representative offices opened in Thailand, Indonesia and Malaysia.
; ICICI Bank UK opened a branch in Antwerp, in Belgium ; ICICI
Bank became the largest retail player in the market to introduce a
biometric enabled smart card that allow banking transactions to be
conducted on the field. A low-cost solution, this became an effective
delivery option for ICICI Bank's micro finance institution parmers.
; 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 IBank's USD 2 billion 3-tranche international bond

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

Gaurav Narang 22
B.B.A
 customers residing in India ; ICICI Bank Eurasia LLC inaugurated
its first branch at St Petersburg, Russia.

+ 2008 : ICICI Bank enters US The US Federal Reserve permitted ICICI

to convert its representative office in New York into a branch.}
ICICI Bank enters Germany, opens its first branch in Frankfurt ;
ICICI Bank launched iMobile, a breakthrough innovation in banking
where practically all internet banking transactions can now be
simply done on mobile phones. ; ICICI Bank concluded India's
largest ever securitization transaction of a pool of retail loan assets
aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in
a multi-tranche issue backed by four different asset categories. It is
also the largest deal in Asia (exJapan) in 2008 till date and the
second largest deal in Asia (exe Japan & Australia) since the
beginning of 2007, ; ICICI Bank launches ICICIACTIVE Banking
Interactive Service along with DISH TV, which will allow viewers
to see information about the Bank's products and services and
contact details on their DISH TV 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 nonexecutive

Chairman and Ms Chanda Kochhar as Managing Director & CEO
effective May 1, 20091 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 USSIOO million
with the Japan Bank for International Cooperation (JBIC) which
Gaurav Narang 23
B.B.A
 constitutes the international wing of Japan Finance Corporation. ;
ICICI Bank Limited acting through its Hong Kong Branch (ICICI
Bank) signed a loan agreement with the Export-Import Bank of
China (China Exim) for USD 98 million under the Two- step Buyer
Credit (Export Credit) arrangement. ICICI Bank is the first Indian
Bank to have entered into this arrangement with China Exim ; ICICI
Bank with Singapore Airlines launched "ICICI Bank Singapore
Airlines Visa Platinum Credit Card", the Card has exclusive
privileges especially designed for the members. ; ICICI Bank
announced an association with mChek, India's leading mobile
payment solutions provider, to facilitate mChek services to all ICICI
Bank Debit and Credit Card customers. These are electronic cards
issued to the customers with mChek application on their mobile
phone. ; Ms Chanda Kochhar took charge as the Managing Director
& CEO of ICICI Bank from May 1, 2009.

ICICI BANK TODA Y

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 (USS 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
Cunent and savings account (CASA) ratio increased to 28.7% at March 31, 2009 from
26.1% at March 31, 2008. Increase of Rss 5,286 crore in CASA deposits in quarter ended
March
Gaurav Narang 24
B.B.A
ICICI Bank is one of the Big Four Banks of India with State Bank of India! Axis Bank and
HDFC Bank

ICICI Bank Group

BUSINE
SS PROFILE
Products & Services
Personal Banking
Deposits
Loans
Cards
Investm ents
Insurance
Dem at Services
e Wealth Managem ent

NRI Banking

Money Transfer
Bank Accounts
Investm ents
Property Solutions
Insurance
Loans

Business Banking

Corporate Net Banking

Cash Managem ent
Trade Services
Gaurav Narang 25
B.B.A
 FXOn1ine
SME Services
Online Taxes
Custodial Services

Head Office
ICICI Bank
9th Floor, South Towers
ICICI Towers
Bandra Kurla Complex
Bandra (E)
Mum bai.
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 lyengar

Mr. Homi R. Khusrokhan

Mr. Lakshmi N. Mittal

Mr. Narendra Murkumbi

Dr. Anup K. Pujari

Mr. Anupam Puri

Mr M.S. Ramachandran

Gaurav Narang 26
B.B.A
 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. Kannall*
Executive Director & CFO

Mr. K. Ramkumar
Executive Director

Mr. Sonjoy Chatterjeq

Executive Director

+ Board committee
Board Governance Remuneration &
Audit Committee
Nomination Committee
Mr. Sridar lyengar, Chairman Mr. M, K, Sharma, Chairman
Mr. M. K. Sharma, Alternate Mr. K. V, Kamath
Chairman Mr. Anupam Puri
Mr. Narendra Murkum bi Prof. Marti G. Subrahman am
ME V. Sridar
Custorner Service Committee
Corporate Social Responsibility
Committee

Gaurav Narang 27
B.B.A
ME M. K. Sharma, Chairman Mr. K. V. Kamath, Chairman
Dr. Anup K. Pujari Mr. Narendra Murkum bi
Ms. Chanda D. Kochhar Dr. Anup K. Pujari
Mr. M. S. Ramachandran
Mr. M.K. Sharma
Ms. Chanda D Kochhar

Fraud Monitoring Committee

Credit Committee
Mr. K. V. Kamath, Chairman Mr. M, K, Sharma, Chairman
ML Narendra Murkum bi Mr. K, V, Kamath
Mr. M. S. Ramachandran Mr. Mr. Narendra Murkum bi
Sharma Ms. Chanda D Kochhar
Ms. Chanda D. Kochhar Mr. Sandee Bakhshi
Risk Committee
Share Transfer & Shareholders'/
Investors' Grievance Committee

Mr. K. V. Kamath, Chairman Mr. M. K. Sharma, Chairman

Mr. Sridar lyengar Mr. Narendra Murkum bi
Dr. Anup K. Pujari Mr. N. S. Kannan
Prof. Marti Gt Subrahmanyam
Mr. V. Prem Watsa
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
Gaurav Narang 28
B.B.A
 We will leverage our people, technology, speed and financial capital to: be the
banker of first choice for our customers by delivering high quality, world-class
service.
Expand the frontiers of our business globally.
Play a proactive role in the full realisation of India' s potential,
Maintain a healthy financial profile and diversify our earnings across businesses and
geographies.
Maintain high standards of governance and ethics.
Contribute positively to the various countries and markets in which we operate.
Create value for our stakeholders.

TECHNOLOGY Used In ICICI Bank

ICICI use many type of advance technological software like Pinnacle 7.0 and
Pinnacle7,016.Among from this software ICICI bank uses the e-bankingt 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

Gaurav Narang 29
B.B.A
restrictions on scalability. Secondly, querying and loading could not happen
simultaneously, Queries could only be run during busmess 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 busmess 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 custom ers,
ICICI Infotech officials told a press conference here today that Orion Advantage offered
a set of business practice solutions for industry segments such as engineer'ingt auto
ancillary, pharmaceuticals, chemicals and IT distribution. Besides the cost advantage, the
ERP package 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 preconfiguredt 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.

Gaurav Narang 30
B.B.A
 Mr. KS. 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

Electronic Straight through Processing Reduced Transaction Cost

Data Warehousing, CRM Improve Cost Efficiency, Cross Sell

Innovative Technology Application Provide New Or Superior Products

The country's 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 Deposit Product Investment &
Gaurav Narang 31
B.B.A
 Insurance
Auto loan Savings A/C • Mutual Funds Bonds
Loan against Current A/C Knowledge Centre
security Fixed Deposits
Loan against Demat A/C • Insurance General And
property Safe Deposit Health
Lockers
• Personal loan
Insurance
Equity And
• Credit card Derivatives

• 2- wheeler loan • Mudra Gold Bar

• Comm ercial
vehicles finance

• Home loans
• Retail business
banking

• Tractor loan
Working capital
finance
Construction
Equipment finance

• Health care finance

• Education loan
• Gold loan
Cards Payment Services Access To Bank

Gaurav Narang 32
B.B.A
 Credit Card Net Safe Net Banking
• Debit Card • Merchant
One View
InstaAlert M obile
• Prepaid Card Prepaid Refill Banking
Bill Pay ATM
Visa Bill Pay Phone Banking e
Forex services
InstaPay Email Statements
Direct Pay
Branch Network
• Product And
VisaMoney
Transfers
Services
Trade Services
Forex Service
• E-Monies Electronic
Funds Transfer
Branch L ocater
Online Payment Of

• RBI Guidelines
Direct Tax

WHOLESALE BANKING

Corporate Small and Medium Financial Institutions

Enterprises and
Trusts

Gaurav Narang 33
B.B.A
 • Funded Services
Non Funded
Funded Services
Non Funded
BANKS
Services Services
• Value Added
Services
Specialized Services
Value Added Clearing Sub-Membership
Internet B anking Services R TGS Sub-Membership
Internet Banking Fund Transfer
ATM Tie- Ups
Corporate Salary A/C
Tax Collection

Financial Institutions

Mutual Funds

Stock Brockers

Insurance Companies

Commodities Business

Trusts

+ MRI SERVICES

Accounts & Deposits Remittances

Rupee Saving A/C North Am erica

Rupee Current A/C
Rupee Fixed Deposits • Uk
Foreign Currency Deposits Europe
Accounts For Returning Indians
• South East Asia

• Middle East
• Africa

• Others

Gaurav Narang 34
B.B.A
 Quick
Remit
India Link
Check Lock Box
Telegraphic/ Wire Transfer
Fund Transfer CIA u es/l)dsrrcs

Investment & Insurances Loans

• Mutual Funds • Home Loans

Loans Against Securities
• Insurance Loans Against Deposits
Private Banking
• Gold Card Credit
• Portfolio Investment Scheme

Payment Services Access To Bank

Net Safe Net Banking

Bill Pay One View
InstaPay InstaAlert
DirectPay
VisaMoney • ATM
Phone Banking
• Online Donation
• 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

Gaurav Narang 35
B.B.A
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 custom
ers 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 PLUS"Senior 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 reqtlirem ents in m incl.
Special senior citizens desk to cater to all banking transactions, so that you don't 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 anytim e,
anywhere and from any place,including branches,ATMs and phone banking.
Nomination facility available.
Quarterly average balance(QAB) requirem ent of
Quarterly physical statements are delivered to your doorstep to absolutely free of
cost.
Passbook on request.
Young Stars Account:

Gaurav Narang 36
B.B.A
 Young Stars is a banking service for children, aged Iday -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 investm ent options to the parent
along with teaching the child to m anage his/her personal
finance in a m ore 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 m oney 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 nam e.

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,

Advantage woman savinæs account

The ICICI Bank Advantage Woman Account enables today's
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 Enjoy your
present and plan for the future with ICICI Bank's Advantage Woman Savings Account.Advantage
Wom an offers a specially designed woman's debit card which helps you shop and save
simultaneously, m anages your household expenditures and comes with a bag full of offers attached
to it.

Special International Wom an's Debit Card with lots of offers.

Free unlimited access to any bank's 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)
requirem ent 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 Businessm an, Joint stock com panies,
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

Gaurav Narang 37
B.B.A
 Only Roaming Current Account from ICICI Bank travels the distance with custom ers
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 the country.
So while custom ers take care of their business, ICICI Bank's Roaming Current Account
simplifies banking for them

SaJary Accounts
Salary Account is a feature rich corporate payroll account with benefits for both corporates and its
em ployees.

The process of drawing cheques for salaries is replaced by

sending a single ASCII file to the bank and the am ount 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
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 m a soft and hard copy format and we will credit the respective employees'
accounts as per your statem ent of advice.ICICI Bank Salary Accounts benefits you in more than
one ways:-

Reduces paperwork,

Saves rem ittance costs.

Em ployees receive instant credit of salaries. More convenient than ECS, Besides all of the above,
employees autom atically becom e ICICI Bank account holders with special benefits and
privileges of 8-8 banking, Investm ent advisory and much m ore...

Gaurav Narang 38
B.B.A
Fixed deposits:
Fixed deposits are options which help you grow your money thus creating
wealth in a safer and secure way.
ICICI provides its custom ers with various kinds of Fixed deposit facilities
that are flexible and cater to custom ers who have different needs and
wants in their fixed deposits. ICICI provides a Fixed Deposit that allows
customers to deposit their m oney for just as long as you wish.

Wide range of tenures — 15 days to 10 years.

Choice of investm ent 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
m aturity,
Interest compounded quarterly.

Additional interest rate of 0.5% for senior citizens.

Recurring Deposits:
ICICI Bank Recurring Dep osits 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 investm ents may seem
a plan away.

Recurring deposits aim s to encourage savmgs without

putting any stress on customers finances by m aking them to put a lump sum am ount 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 T DS is applicable in it .the minimum balance of
deposit is of Rs.500 and thereafter in multiples of Rs. 100 the minim um period is 6 m onths 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 Bank's 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.

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 ICICI Bank Tax-Saver Fixed Deposit
ICICI Bank's Tax-Saver Fixed Deposit enables you to save tax and earn high returns. A dual
benefit option structured to m aximise your advantage. ICICI Bank's Tax Saver FD is the perfect
solution for your investm ent needs.

EEFC Account

Indian exports have surged over the last decade owing to an unprecedented boom in sectors like
software, biotechnology, gem s, jewellery, textiles etc. As a result of this, the volum e 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
traveller's cheques, foreign currency in cash and foreign currency dem and 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 tim e you travel abroad.

The Reserve Bank of India has now m ade it easier for you to access foreign currency by perm
itting a foreign currency account (dom estic) 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. Non-interest bearing Resident Foreign
Currency (D) (RFC (D)) with ICICI Bank can be m aintained in four m ajor currencies (UsD,
EURO, GBP and Japanese Yen)

PRIVILEGE BANKING:
Privilege banking service ensures preferential treatm ent to its custom ers.

Silv_er privilege A/c

Waiver of multi-city cheque book usage up to Rs. 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 requirem ent of Rs.25000.

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.

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 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 m anager,
Priority processing at ICICI Bank brancghes and custom er care.
Free international titanium debit card with higher daily withdrawal and spend lim
it.
Free anywhere banking facility.
Free usage of multy-city cheque book.
Free physical m onthly account statement.
Complete waiver on DD/PO charges.
Preferential rates for gol coins,deposit lockers and foreign exchange.
Quarterly average balance (QAB)requirement of Rs.75000 and Total Relationship
Rs. 5900, 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.

Access to superior benefits for the entire family.

Flexibility to maintain balances across account.
Lower minimum balance requirement at individual custom er level.
Single family bank — convenience for the entire family and easier funds managemenL

Outward Remittance:
Send rnoney to your loved ones abroad

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

Advantage Deposit
Advantage Deposit is a combination of fixed deposit and mutual fund investm ent, offering you the
safety of a fixed deposit and the returns of an equity fund. Advantage Deposit counters equitym
arket fluctuations through System atic Investm ent Plans,

Com bination of a Fixed Deposit (with monthly interest payout) and System atic Investm
ent Plan (SIP) of a Mutual Fund.
Re-investm ent of m onthly interest payout of Fixed Deposit into system atic investm ent
plan of Mutual Fund.
Autom atic debits to account through Standing Instruction / ECS debit m andate.

New Pension System of Government of India

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, prom oted by the PFRDA
(Pension Fund Regulatory and Developm ent Authority, Governm ent 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 schem e is to prom Ote security of income to its subscribers in their
old age. The schem e will empower a subscriber to plan his own retirem ent and pension, It not
only will help him save for life after retirement but also is a good investm ent tool as the returns
are market-driven. For optimum returns, the Governm ent 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 am ount of outstanding

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loan but also your prepayment charges to the old housing finance company. The result:

A lower EMI with the sam e tenure .

A reduced tenure with the same EMI.

A reduced tenure and EMI
The sam e EMI and tenure but an additional am ount as a loan.

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 repaym ents 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 autom obile manufacturers to ensure the best deals. Flexible
schemes & quick processing. Hassle-free application process on the
click of a mouse.

43
COMMERCIAL VEHICLE LOAN

Reaches you through more than 700 locations across

the country.
Range of products under one um brella.
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 m
anufacturers.
Simple docum entation.
Quick turn around time.
Flexible financing solutions to m eet the individual requirem entw 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 m otor bikes,
Now avail Finance upto 90%* of the On Road Cost of the
vehicle, repayable in convenient tenure options ranging from 6
m onths 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 Custom ers 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 sm s.

FARM EQUIPMENT LOANS:

ICICI is the preferred financier for alm ost all leading tractor
manufacturers in the country.
ICICI finances farm equipm ents in over 381 locations
spread across the country.
Provides fast processing of files with easy documentation.
Flexible repaym ent options in tandem with the farm er's
seasonal liquidity.
Monthly, Quarterly and Half-yearly repaym ent patterns
to choose from. Com fmtable repayment tenures from 1 year to 6 years.
 CONSTRUCT!ON EQUIPMENT LOAN
Having funded infrastructure for over 4 decades, ICICI understands
the need of the custom ers better. ICICI Bank offers attractive
financial packages through their excellent distribution network. The
products are custom ised for new entrepreneur to large business
houses. ICICI has tie-up with leading construction

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45
 equipm ent m anufacturers 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
form alities and one tim e sanction of loans for disbursem ent over a period of tim e.

OFFICE EQUIPMENT LOAN:

Minimum docum entation required. Doorstep Service. >Competitive Interest rates.
>Flexible repayment structure. >Hassle-free application process with the click of a
mouse.
>Details on your application status online.
MEDICAL EQUIPMENT LOAN:
Professional doctors are aware of the distinct advantages that the latest medical equipment
can give their patients, ICICI Bank Medical Equipm ent 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 sec'urities 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 custom er can withdraw money as and when they
require. Interest will be charged only on the am ount withdrawn and for the time span utilised.
ICICI offer loans against:

• Demat Shares
• RBI Relief Bonds

46
 • Mutual Funds Units
• India Millennium Deposits (IMDs)
• ICICI Bank Bonds

• Life Insurance Policies (Single Prem ium)

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 paym entst 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 m
er ch ants 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.

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PRE PAID CARDS:
ICICI Bank brings to you a com plete bouquet of pre-paid cards
providing payment solutions at your fingertips. ICICI Bank
prepaid cards are a safe &convenient way for associate payments,
disbursem ents, gifting & sm all ticket transactions, Pre-paid cards
are available on a VISA platform thus providing accessibility to
over one lakh merchant establishm ents & 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
Investm ents through Initial Public Offers and Investm ent in Pure Gold. ICICI Bank facilitates
following investm ent products:

ICICI Bank Tax Saving Bonds

Government of India Bonds
Investm ent in Mutual Funds
Initial Public Offers by Corporate
Investm ent in "Pure Gold"
Foreign Exchange Services
Senior Citizens Savings Scheme, 2004

Custom ers 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 "LA AA" by ICRA indicating
the highest degree of safety for your money.

48
 Investm ent 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 investm ent tenure.
Nom ination facility available.
Cannot be traded in secondary market Interest
income taxable.

Mutual Funds
Mutual Funds pool m oney 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 schem es. Investors can choose any particular Fund/Scheme
or mix of Funds/Schem es depending upon their perception towards risk, Investm ent is done on
the basis of prevailing Net Asset Values of various schem es. Mutual Funds Investm ents are subject
to Market Risks.

Types of Funds Sold

ICICI Bank helps investor determine which types of funds you need to m eet your investm ent
goals. This may include the following types of funds:

Debt: Liquid schemes, Income schem est G-sec schemes, Monthly Income Schemes
etc.

Equity: Diversified Equity Schem es, Sector Schem es, Index Schem es etc. Hybrid

Funds: Balanced Schem es, Special Schemes - Pension Schem es, Child

education Schem es etc.

ICICI Bank helps investors identify an appropriate mix of Mutual Fund schem es for their portfolio
using asset allocation strategies.

Through ICICI Bank investor can invest in various schemes of m ultiple mutual funds with
decent performance record. investor can take the aid of ICICI Bank's various research reports on
mutual funds and their schem es before choosing a scheme for investm ent. ICICI Bank offers
investm ent in Mutual Funds through Multiple Channels. With ICICI Bank, investor can invest in
Mutual Funds through following channels.

• ICICI Bank Branches

• Bank ATM'S

• ICICIdirect.com
And provide a Dedicated workforce to serve clients.
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 • 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 program s 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 mdustry and the
various financial markets through regular electronic updates (daily & weekly) through Em ails.
ICICI also send out a m onthly magazine on investm ents to their custom ers.

Initial public offerings (IPO)

Investor can invest in IPOs online through www.icicidirect.com with sam e 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 m arkete IPO 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 m ost favored form of investm ent for Indians. In fact, India,
even today is amongst the highest consum ers of Gold in the world. However, the Gold m arket
rem ains largely unorganized with reliability and convenience rem ainmg 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 custom ers 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, gg, 20g and 50g categories.

PRIVATE BANKING

Bene ts:
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Comprehensive range or products and services

-Savings Account, Fixed Deposits, Recurring Deposits, Quantum Optim a, Current Accounts,
-Resident Foreign Currency (Dom estic) Accounts etc.
-Asset Products- Hom e Loans, Car & Personal Loans, Loan Against Securities etc.
-Investm ents- Governm ent of India Bonds, Mutual Funds, Capital Gain Bond etc. -
Insurance
-Web Trade and Dem at 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 Complim entary Offers
-V alue-linked benefits

Competitive Pricing

-Reduced rates for products and services

-Several Complim entary Offers

-V alue-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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 • ReliefBo nds/Mu tualFunds/Insurance
Salary Account custom ers 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.
• GoldC0in
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 requirem ent.

NRI SERVICES
Wherever people m ay be, in India or abroad, ICICI Bank has created a wide range of products
and services that provide custom ers complete financial solutions. Helping them to make the right
decisions at the right tim e and can be rest assured that they are in the safe and frustworthy 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 m oney earned abroad. The m oney 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
rates custom ers get free m oney transfers, easy access for the customer as well as for his/her fam
ily back in India, and a free m andate card for the loved ones in India.

2 . NRO Account: The Non-Resident Ordinary Account (NRO Account) allows custom ers 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 perm issible currency and is later converted into Indian Rupees.
NRO account offers attractive exchange rates upon conversion of foreign currency into Indian

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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 m aintain 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 m
onth
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 Imonth to 36m onths.

Advisory Services
Private Equity Placem ent
ICICI Bank's Sm all Enterprises Group's (SEG) Investm ent Bankmg team is dedicated to provide
you niche and exclusive mvestment banking services.

The Bank Edge

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

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 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 Investm ent Banking team can
design solutions for special situations like CDR, BIER, 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 m oney order
and doing lots m ore.

O AWARDS & RECOGNITION O

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

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.

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ICICI Bank received two awards in CNBC Awaaz Consum er Awards; one for the most preferred auto loan and
the other for m ost 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 Investm ent Awards for the Best Derivative House, India. In addition ICICI
Bank were Hi hl commended , Local Curren Structured roduct, India for 1.5 ear 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 m 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 m Retail Financial Services Awards Programm e.

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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 "Sm all Budget On Ground
Promotion of the Year'". These awards were given for Cattle Loan 'Kam dhenu Campaign' and 'Talkies on the
m ove campaign' respectively.

ICICI Bank's Germany Branch has been certified by "Stiftung Warrentest". ICICI Bank is ranked 2nd am
ongst 57 savings products across 19 banks

ICICI Bank Germany won the yearly banking test of the investor m agazine €uro in the "call m oney"category.

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 & improvem ents.

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 Dom estic Custodian in India
ICICI Bank has bagged the Best Cash Managem ent 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 long-standing 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 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.

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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 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

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2) To analyse the financial statements of the corporation to assess it's 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:
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

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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 that' s why
problem statement is defined to know which type of problems a researcher has to face
while conducting any study, It is said that,
"Problen well defined is problelll half solved."

Basically, a problem statem ent 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
A research designs is the arrangement of conditions for collection and analysis data in a
manner that aims to com bine 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
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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.

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 i— 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
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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 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 Bank's
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.

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 + 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.
2. Trend Percentage.
3. Ratio Analysis,
4. Cash Flow Statem ent.

•9 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 company's 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

Chapter 4

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 FINANCIAL ANALYSIS

INTRODUCTION OF THE TOPIC

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Meaning Of Financial Statements
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 sffucture 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 incun•ed
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 datm
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

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.

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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
statem ents: -

The analyst should acquaint himself with principles and postulated of accounting.
He should know the plans and policies of the managem ent 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 inform ation is interpreted in a simple and understandable way. The significance
and utility of financial data is explained for help in decision making.

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 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 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 am ong 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 analysis etc, external analysis is less
reliable in comparison to intemal analysis because of limited and often
incomplete information.

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 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.
b) Intra -Firm Analysis : intra-firm analysis is concerned with the analysis of financial
performance of different units or departments or segm ents 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) Prospecti_ve 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.

Methodsnools 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 statem ents
c. Trend analysis
d. Ratio analysis
e. Funds flow analysis
f. Cash flow analysis
g. Break even point analysis

a. Comparative Financial Statements:

When financial statem ents 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
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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.Cornparative Balance Sheet : The comparative balance sheet shows increase and
decrease in absolute terms as well as percentages tin various assets ,liabilities and capital.
A comparative 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 longterm
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.

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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 com 'non size staternents

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.

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.

de 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

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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."

TYPES OF RATIOS
I. 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.
8. Window-Dressing
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 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 firm's ability to meet its current obligations. Long
—Term Solvency and Leverage Ratios : Long-term solvency ratios convey a firm's
ability to meet the interest cost and repayment schedules of its long-term obligation e.g.
Debit Equity Ratio and Interest Coverage Ration. L everage 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)ln relation in Investment

FUNCTIONAL CLASSIFICATION IN VIEW OF

FINANCIAL MANAGEMENT OR
CLASSIFICATION

ACCORDING To TESTS
Liquidity Ratios Long-term Activity Ratios Profitability
Solvency and Ratios
Levera e Ratios
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-Current Ratio Financial Operating Inventory Turnover In Relation to Sales.
-Liquid Ratio C om p osite Ratio. Gross Profit Ratio.
(Acid) Test or -Debt. Equity Debtors Turnover Operating Ratio.
Quick Ratio. - Ratio Ratio Operating Profit
Absolute liquid or -Debt to Total Fixed Assets Ratio.
-Cash Ratio. Capital Ratio Turnover Ratio Net Profit Ratio.
-Debtors -Interest Total Asset Expenses
Turnover Ratio - Coverage Ratio Turnover Ratio In
Creditors Turnover -Capital Gearing Ratio relation to
Ratio Ratio Working Capital investm ents
-Inventory Turnover Turnover Ratio. Return on
ratio Payables Turnover In vestm ents.
Ratio Return on capital.
Capital Em ploy ed Return on Equity
Turnover Ratio Ca ital,
Return on total
Resources
Earning per share.
Price Earnin 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 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,
Helpful in Ascertaining Cash Flow from various Separately.
7. Helpful in Making Dividend Decisions.

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BALANCE SHEET OF ICICI BANK LTD.
As On Mar 2005,Mar 2006,Mar (Rs. In crores)
2005 2006 2007 2008 2009

CAPITAL

LIABILITIES:
Total Share Ca 1086.75 1239.83 1249.34 1462.68 1463.29
ital
Equity Share Ca 736.75 889.83 899.34 1112.68 1113.29
ital
Share 0.02 0.00 0.00 0.00 0.00
Application
M one
Preference Share 350.00 350.00 350.00 350.00 350.00
Ca ital
Reserves 11813.20 21316.16 23413.92 45357.53 48419.73
Revaluation 0.00 0.00 0.00
Reserves
Net Worth 12899.97 22555.99 24663.26 46820.21 49883.02
De osits 99818.78 165083.17 230510.19 244431.05 218347.82
Borrowin s 33544.50 38521.91 51256.03 65648.43 67323.69
Total Debt 146263.25 226161.17 306429.48 356899.69 335554.53
Other Liabilities 21396.17 25227.88 38228.64 42895.39 43746.43
And Provisions
Total Liabilities 167659.42 251388.95 344658.12 399795.08 379300.96

ASSETS:
Cash And 6344.90 8934.37 18706.88 29377.53 17536.33
Balances With
RBI
Balances With 6585.07 8105.85 18414.45 8663.60 12430.23
Banks,Money At
Call
Advances 91405.15 146163.11 195865.60 225616.08 218310.85
Investm ents 50487.35 71547.39 91257.84 111454.34 103058.31
Gross Block 5525.65 5968.57 6298.56 7036.00 7443.71
Accumulated 1487.61 1987.85 2375.14 2927.11 3642.09

Gaurav Narang 75
De reciation

Net Fixed Assets 4038.04 3980.72 3923.42 4108.89 3801.62

Capital Work In 96.30 147.94 189.66 0.00
Pro ress
Other Assets 8702.59 12309.57 16300.26 20574.63 24163.62
Total Assets 167659.40 251388.95 344658.11 399795.07 379300.96

Contingent 97507.79 119895.78 177054.18 371737.36 803991.92

liabilities
Bills for 9803.67 15025.21 22717.23 29377.55 36678.71
collection
Book 170.33 249.53 270.37 417,64 445.17
value s.
EPS 27.22 28.55 34.59 37.37 33.78
No. of e ui 736716094 889823901 899266672 1112687495 1113250642
shares

Gaurav Narang 76
PROFIT AND LOSS ACCOUNT OF ICICI BANK LTD.
For The Year Ended (Rs. In Crores)
2005 2006 2007 2008 2009

INCOME:
Interest Earned 9409+90 13784.49 22994.29 30788.34 31092.53
Other Incom e 3416.14 4983.14 5929.17 8810.77 7603.72
Total Incom e 12826.04 18767.63 28923.46 39599.11 38696.27
EXPENDITURE:
Interest Ex ended 6570489 9597.45 16358.50 23484.24 22725.93
Operating 3299.15 4479.51 6690.56 815418 7045.11
Ex enses
Total Ex enses 9870.04 14076.96 23049.06 31638.42 29771.04
O eratin Profit 2956 4690.67 5874.40 7960e69 8925.23
Other Provision 428.80 1594.07 2226.36 2904.59 3808.26
And Conti encles
Provision For Tax 522 556.53 537.82 898.37 1358, 84
Net Profit 2005.20 2540.07 3110.22 4157.73 3758.13
Extraordinary 0.00 0.00 (0.58)
Item s
Profit B/F 53.09 188.22 293.44 998.27 2436.32

Total 2058.29 2728.29 3403.66 5156.00 6193.87

Preference 0.00 0.00 0.00 0.00
Dividend
E ui Dividend 632.96 759.33 901.17 122170 1224.58
Corporate 90.10 10630 153.10 149.67 151.21
Dividend Tax
Pershare Data

27.22 28.55 34.59 37,37 33.78

Equity 85.00 85, oo 100.00 110,00 110.00

Dividend %
Book Value s 170.35 249,55 270437 417.64 445, 17
A ro riations

Transfer To 547,00 248.69 1351.12 1342.31 2008.42

Statuto Reserve
Transfer To Other 600.01 1320.34 0.00 0.01 0.01
Reserve

Gaurav Narang 77
Proposed 723.06 865.83 1054.27 137137 1375.79
Dividend/Transfer
To Govt

Gaurav Narang 78
 Balance C/F To 188.22 293.44 998.27 243632 2809.65
Balance Sheet
Total 2058.29 2728.30 3403.66 5156.01 6193.87

FINANCIAL STATEMENT
ANALYSIS
Comparative Balance Sheet Of ICICI Bank From 2005-2006 To
20082009
(Rs. in crores)

PARTICULARS 2005-2006 2006-2007 2007-2008 2008-2009

Absolute Absolute Absolute Absolute

change change change change change change change chan
CAPITAL
AND
LIABILITIES:
ca ital 153.08 14 9.51 0.8 213.34 17 0.61 .04

Reserves and 9502.96 80 2097.76 10 21943.61 94 3062.2 7

s lus
De osits 65264.39 65 65427.02 40 13920.86 6 (26083.23) (11)

Borrowin s 4977.41 15 12734.12 33 14392.4 28 1675.26 2.5

Other Liabilities 3831.71 18 13000.76 51.5 4666.75 12 851.04 2

and Provisions

TOTAL_CAPITAL 83729.55 50 93269.17 37 55136.96 16 (20494.12) (5.1)

AND LIABILITIES

ASSETS:
Investments 21060+04 42 19710.45 27.5 20196.5 22 (8396.03) (7.5)

Advances 54757.96 60 49702.49 34 29750.48 15 (7305.23 (3.25

Fixed assets (57.32) (1.4) (57.3) 1.4) 185.47 5 (307.27) (7.5)

Capital Work In 51.64 54 41.72 28.2 (189.66) -100 0.00 0.00
Pro ress
Current assets 7917.23 37 23871.8 81 5194.17 10 (4485.58) (8)

TOTAL 83729.55 50 93269.16 37 55136.96 16 (20494.11) (5.1)

ASSETS:

Interpretation
The capital of bank increased by 14% in in
0
2006-0717% in 2007-08tand .04 /0 in 2008-09. This shows

Gaurav Narang 78

Gaurav Narang 80
 that there is fluctuation in the rate of increase in the capital. In
2005-06 and 2007-08 the rate of increase in capital is more
than that of 2006-07 and 2008-09.
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 2006-07 it increased

by 40%,and an increase of 6% in 2007-08,in 2008-09
deposits fall by 110/0.this shows that the bank has repayed its
deposits in this year.

The borrowings are also showing a fluctuating rate of

increase.in 2008-08 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 2005-06,an 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 2006-07 it decreased by 1.4 %
jincreased by 5% in 2007-08 and again dec•reasing 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 2005-06,rate of increase rose to 80% in 2006-07
and 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 0/0.this
is mainly due to the repayment of deposits in the years 2008-
09.
1. Comparative Income Statement Of ICICI Bank From
2005-2006 To 2008-2009
(Rs. in crores
PARTICULARS Operating income

EXPENDITURE:

INCOME: Interest ex ended Operating

Gaurav Narang 81
 ex enses Total 5941 46.3 10156 54.1 10676 (902.84) (2.3)
ex enses
Operating profit

3026.56 46 6761.05 70.4 7125.74 43.5 (758.31) (3)

Provision and 1180.36 36 2211.05 49.3 1463.62 22 (1109.07 (14)
contigencies Net
profit for the ear
4206.92 43 8972.1 64 8589.36 37.2 (1867.38) (5.9)
Extraordinary
items Profit 1734.67 59 1183.73 25.2 2086.29 35.5 964.54 12.1
brought forward
TOTAL PROFIT/ 1199.8 126.1 613.58 28,5 1038.78 37.5 1364.14 36
(LOSS):

334.87 27 570A5 22,4 1047.51 34 (399.6) (10)

Interpretation:-
2005-2006 0.00 0.00 0.00 0.00 0.00 0.00 (0.58) 0.00
2006-2007 2007-
2008 2008-2009
135,13 2543 105.22 56 704.83 21 1438.05 144
Absolute Absolute
Absolute Absolute
change change 670 3255 675.37 25 1752.34 51.4 1037.87 20
change change
change change
change chan

• The net profit shows a fluctuating trend i.e it increased by 27% in 2005-06,22.4%
increase in 2006-07,and increased by 34% in 2007-08 and finally if falls by 10%
in2008-09.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. TRENDANALYSIS
Trend Percentage Of ICICI Bank From 2004-2005 To 2008-2009
ase rear 2004-05 Percenta e ures
Particulars 2005 2006 2007 2008 2009
De osits 100 165 231 245 219
A dvances 100 160 214 247 239
Net rofit 100 127 153 207 187

Gaurav Narang 82
 Trend graph of ICICI Bank
300

250

200 DEp0SlTS
ADVANCES
NET PROFIT

2005 2006 2007 2008 2009

Years
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 repaym ent 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 2008.1n four years
it has been more than double.

The overall perform ance of the bank is satisfactory.

3. RATIO ANALYSIS
CURRENT RATIO:
An indication of a company's ability to m eet short-term debt obligations; the higher the
ratio, the m ore liquid the company is. Current ratio is equal to current assets divided by
current liabilities. If the current assets of a company are m ore 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 m ay have
problems m eeting its short-term obligations.

Gaurav Narang 83
 CURRENT RATIO = CURRENT ASSETS /CURRENT
LIABILITY

Current Ratio of ICICI Bank for the period of

1.6
1.4 1.39 1.36 1.23

1.2
1.17
1
1.01
Current
Ratio

0.8
0.6
0.4
0.2

2005 2006 2007 2008 2009

Years
Year Current Assets Current Liabilities Current Ratio
(Rs. In crores) (Rs. In crores)
2005 21632.56 21396.16 1.01
2006 29549, 79 25227.88 1.17
2007 53421.59 38228.64 1.39
2008 58615.76 42895.38 1.36
2009 54130.18 43746.43 1.23
+ Interpretation:
An ideal solvency ratio is 2. The ratio of 2 is considered as a safe m argin 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 paym ents 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

Gaurav Narang 84
 less or zero. Therefore the bank should keep more current assets so that it can maintain a
satisfactory safety m argin.

LIQUID RATIO:
Liquid ratio is also known as 'Quick' or 'Acid Test 'Ratioe 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 Current Liabilities Quick
Assets = Total Current Assets — Inventory

Liquid Ratio of ICICI Bank for the penod of 2005-2009

1.2
1
0.8

0.6 0.67
Liquid
Ratio

2005 2006 2007 2008 2009

Years
2005 12929.97 21396.16 0.60
2006 17040.22 25227.88 0.67
2007 37121.33 38228.64 0.97
2008 38041.13 42895.38 0.88
2009 29966.56 43746.43 0.68

+ Interpretation:
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 I in & 2009 but in 2007 & 2008 it is close to I which is not
satisfactory, This m eans the bank has not m anaged its funds properly in this particular period.
Therefore bank should rationally utilise its funds to maintain an ideal liquid ratio.

Gaurav Narang 85
 EARNING PER SHARE:
In order to avoid confusion on account of the varied m eanings 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
Noe 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 estim ating the company's capacity to pay dividend to its
equity shareholders.

Earnings Per Share Ratio of ICICI Bank for

the period of 2005-2009

Earnings Per
Share

20
15
10
5
0
2005 2006 2007 2008 2009
Years
Year Net Income Available No. Of Equity EPS
For Shareholders Shares
s. In crores s. In crores
2005 2005.2 73.6716 27,22
2006 2540.07 88.9823 28.55

Gaurav Narang 86
 2007 3110.22 89.9266 34.59
2008 4157.73 111.2687 37.37
2009 3758.13 111.325 33.78

Gaurav Narang 87
 + Interpretation:
Earning Per Share is the m ost commonly used data which reflects the perform ance and
prospects of the company,lt affects the m arket 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,lt is very helpful for potential investors to
know the dividend paying capacity of the com pany.lt affects the m arket value of the company.

Dividend Per Share = Dividend Paid To Equity Shareholders

No. Of IEquity Shares

Dividend Per Share Ratio of ICICI Bank for

the period of 2005-2009

8 O Dividend Per
Share Ratio

2005 2006 2007 2008 2009

Years
Year Dividend Paid No. Of Equity DPS
(Rs. In crores) Shares
s. In crores
2005 632.96 73.6716 8.59
2006 759.33 88.9823 8.53
2007 901.17 89.9266 10.02
2008 1227.7 111.2687 11.03
2009 1224.58 111.325 11
83
+ Interpretation:

Gaurav Narang
Here the Dividend Per Share is inc•reasing year after year except a little decline in 2009.0therwise
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 determ ining the efficiency with which affairs of the business are
being m anaged. An increase in the ratio over the previous period indicates improvem
ent in the operational efficiency of the business. The ratio is thus on effective
measure to check the profitability of business.

25
21.3
20 18.42

15 13.52 13.5
10 O Net Profit
Ratio

o
12.08
2005 2006 2007 20082009

Years
Year Net Profit Sales Net Profit Ratio in %
(Rs. In crores) (Rs. In crores)
2005 20052 9409.9 21.3
2006 2540.07 13784.49 18.42
2007 311022 22994.29 13.52

Gaurav Narang 89
 2008 415733 30788.34 13.5
2009 3758.13 31092.55 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 X 100 Net

Sales

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 incom es. 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

20
15
10
5
o
2005 2006 2007 2008 2009
Y e ars
Year Operating Profit Sales Operating Profit
(Rs. In crores) (Rs. In crores) Ratio in %
2005 2956 9409.9 31.41
2006 4690.67 13784.49 34.02
Gaurav Narang 90
 2007 5874.4 22994.29 2354
2008 7960.69 30788.34 25.85
2009 8925.23 31092.55 28,7

+ Interpretation:
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 m ore as compared
to 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 m easures the profitability of the business in view of the shareholders. It judges the earning
capacity of the company and the adequacy of return on proprietor' s funds,Shareholders
and potential investors are interested in this ratio.lt is calculated as below:

Return On Net Worth = Net Profit After Interest And Tax x 100
Shareholder's Funds

Return On Net Worth Ratio of ICICI Bank for the

period of 2005-2009
18

8.88
a Return On Net
Worth

2005 2006 2007 2008 2009

Years
Year Net Profit After Shareholder's Return On
Interest And Tax Fund Net Worth
s. In crores (in %)
s. In crores
2005 2005.2 12899.97 15.54
2006 2540.07 22555.99 11.26
2007 3110.22 2466326 12.61
Gaurav Narang 91
 B.B.A

2008 4157.73 46820.21 8.88

+ Interpretation:
2009 3758.13 49883.02 7.53
The net profit after interest and tax have increased slowly till the year 2008 followed by a
downfall due to high interest paym ents,operating expenses and taxation liability.consequently
the networth ratio has declined considerably and has reduced to m ore 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 investm ent m ade in business. It also shows how efficiently the resources
are used in the business-comparison of one unit with that of the other or perform ance in one
year with that of the same unit is possible. It is calculated as below:

eturn On Capital Employed of ICICI Bank for

the period of 2005-2009

o o Return on capital
Employed

2005 2006 2007 2008 2009

Years
Year Net Profit Before Capital Employed Return On
Interest And Tax (Rs. In crores) Capital
s. In crores Employed (in %)
2005 9098.09 14626325 6.22
2006 12694.05 226161.17 5.61
2007 20006.54 306429.48 6.52
2008 28540.34 356899.69 7.99

Gaurav Narang 92
 + 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 ofthe business. The ratio was 6.22% in year 2005.
After that it rised to the tune of 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.

Year Debt Equity Debt Equity Ratio

s. In crores s. In crores
2005 154759.45 12899.97 11.99
2006 228832.96 22555.99 10.14
2007 319994.86 24663.26 12.97

Gaurav Narang 93
 B.B.A

2008 352974.87 46820.21 7.53

2009 329417.94 49883.02

DEBT- EQUITY RATIO:

2009 27842.9 33555433 8.29
The Debt-Equity ratio is calculated to find out the long-term financial position of the firm. This
ratio indicates the relationship between long-term debts and shareholder's funds, The
soundness of long-term financial policies of a firm can be determ ined with the help of this
ratio.
It helps to assess the soundness of long-term financial policies of a busmess.lt also helps to
determ ine the relative stakes of outsiders and shareholders.Long-term creditors can assess
the security of their funds in a business.it indicates to what extent a firm depends upon lenders
to meet its long-term financial requirements.A low Debt-Equity ratio is considered better from
the point of view of creditors,

Debt Equity ratio of ICICI Bank for the period of

2005-2009

14
12
10

8
O Debt Equity
6.6 Ratio

2005 2006 2007 2008 2009

Years
+ 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 relymg 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:

Gaurav Narang 94
Years Shareholder's Funds Total Assets Proprietory Ratio
(Rs, In crores) (Rs, In crores)
2005 12899.97 167659.4 0.07
2006 22555.99 251388.95 (108

Gaurav Narang 95
 B.B.A

2007 24663.26 11 0.07

2008 46820.21 399795.07 o. 12
B.B.A
It is also called shareholders equity to total equity ratio or net worth to total assets ratio or
equity ratio.lt compares the shareholder's funds to total assets.lt is calculated by dividing
shareholder's funds by total assets.

Proprietory Ratio = Shareholder's Fund

Total Assets

It helps to determine the long-term solvency of a company. This ratio m easures the protection
available to the creditors.Higher the ratio,lesser is the likelihood of insolvency in future, as the
m anagement 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

0.07 0.07
0.14
0.12
0.1 v 0.08
O Proprietory Ratio

0.06
0.04
0.02

2005 2006 2007 2008 2009

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

Gaurav Narang 96
Year S ales Net Fixed Assets Fixed Assets
(Rs, In crores) (Rs- In crores) Turnover Ratio
2005 9409.9 4038.04 2.33

Gaurav Narang 97
 B.B.A

2006 13784.49 3980.72 3.46

FIXED ASSETS TURNOVER RATIO:

2009 49883.02 379300.96 o. 13

It is also called as Sales to Fixed Assets Ratio.lt m easures 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 m easures 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 investm ent 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
O Fixed assets
Tumover Ratio

2005 2006 2007 2008 2009

Years
2007 22994.29 3923.42 5.86
2008 30788.34 4108.89 7.49
2009 31092.55 380162 8.17

+ Interpretation:
Here the fixed assets employed in the busmess 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.lt
indicates that fixed assets have been effectively used in the business without much additional
investm ent in the period of study and also the capital is not blocked in fixed assets.

CREDIT-DEPOSIT RATIO:

Gaurav Narang 98
 B.B.A

This ratio is very important to assess the credit performance of the bank. The ratio shows the
relationship between the am ount of deposit generated by the bank has well as their deployment
towards disbursem ent of loan and advances. Higher credit deposit ratio shows overall good
efficiency and perform ance of any banking institution.

Credits
Credit Deposit Ratio =
D epos its

Credit means disbursement of advances

Deposit mean sum of fixed deposit,

Saying deposit and current deposit.

Credit Deposit ratio of ICICI bank for the period

of 2005-2009

1.05

1
0.95
O Credit Deposit
ratio

0.9

0.85
0.8
0.75
2005 2006 2007 2008 2009
Years
Year Advances Deposits Credit Deposit Ratio
s. In crores s. In crores (in%)
2005 91405.15 99818.78 91

Gaurav Narang 99
 B.B.A

2006 146163.11 163083.17 88

2007 195865.6 230510.19 84
2008 225616.08 244431.05 92
2009 218310.85 218347.82 99

•9 Interpretation:
Above table exhibits credit deposit ratio of the bank during last 5 years. In the year 2003 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.

Gaurav Narang 100

 B.B.A

4. CASH FLOW STATEMENT OF ICICI BANK

2005 2006 2007 2008 2009

Profit before tax 2 527.20 3 096.61 3 648.04 5 056.10 5 116.97

Net cashflow-operating -
9,131.72 4,652.93 23,061.95 -14,188.149
activi 11,631.15
Net cash used in
-3,445.24 -7,893.98 -18,362.67 3,857.88
investin activi
Netcash used in fin.
-1,227.13 7,350.90 15,414.58 29,964.82 1,623.36
activi
Net inc/dec in cash and
4,459.34 4,110.25 20,081.10 683.55 -8,074.57
e uivlnt
Cash and equivalnt begin
8,470.63 12,929.97 17,040.22 37,357.58 38,041.13
of ear
Cash and equivalnt end
12,929.97 17,040.22 37,121.32 38,041.13 29,966.56
of ear

Gaurav Narang 101

 B.B.A

Chapter 5

FINDINGS,SUGGESTIONS
& CONCLUSION

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 die 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.

Gaurav Narang 102

B.B.A

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 (USS 1,572
million) in F Y 2008. 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 Bank's strong capital adequacy and its focus
on reducing its wholesale term deposit base and increasing its CASA ratio. The
Bank is 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 Bank's 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. 2251616 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 0.68
respectively and the year 2007 and 2008 liquid ratio is 0.97 and 0.88 respectively which
is close to L Though it is not equal to the ideal liquid ratio of 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

Gaurav Narang 103

 B.B.A

The Bank's capital adequacy at March 31, 2009 as per Reserve Bank of India's revised
guidelines on Basel Il norms was 158% and Tier-I capital adequacy was 11.8%, well
above RBI's requirement of total capital adequacy of 9.0 0/0 and Tier-I 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 Bank's net non-performing asset ratio was 1.96%. During the
year the Bank restructured loans aggregating to Rss 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.lt 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.

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 m maintaming a reasonable
profitability position.

Gaurav Narang 104

 B.B.A

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 trendi

Equity shareholders are also enjoymg 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 owner's equity
Bank's investments are also showing an increasing trend. Due to increase in advances, the
interest received by the bank from such advances is proving to be the major source of
income for the bank

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: ISO 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

Gaurav Narang 105

 B.B.A

B.B.A

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.

Though the bank has been successful in increasing it's 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 FL)' s etc.

O Bank should ny to finance more and more projects. Financing will help it to earn
higher amount of profits.

O 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 it's 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.

O 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,

Gaurav Narang 106

 В.В.А

CHAPTER 6

BIBLIOGRAPHY

BIBLIOCJRAPHY

CAi1t*AV NA1*Ai1 О

Books Reffered:
Accountancy R.R. Mittal,A.K.Jain.

Financial Management- Theory and Practice. Shashi.K.Gupta , RX i Sharma.

• Essentials of Corporate Finance 2 nd

edition ,lrwin McGraw-Hill,Ross, S.A.,R.W.
Westerfield and BD. Jordan.

• Basic Financial Management ,8th edition , Prentice -Hall,lnc, Scott, D.F., J.D
Martin, J.W, Petty and A.Keown.
 B.B.A

В.В.А

Internet websites:
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