1

GURU NANAK COLLEGE OF SCIENCE, COMMERCE AND

ARTS
MUMBAI UNIVERSITY

2016-2017
A PROJECT
ON
A STUDY ON ANALYSIS OF FINANCIAL STATEMENT OF
ICICI BANK
BY
ANKITA CHINDARIA
(TYBMS)
UNDER GUIDANCE OF
SUPRIYA YADAV

DECLARATION
I, Ankita Chindaria the student of T.Y.B.M.S Semester V(2016-2017)
hereby declare. That i have completed the project on Financial analysis of ICICI Bank.
The information submitted is true and original to the best of my knowledge

(Signature of student)
Name of the student Ankita Chindaria
Roll No .08

GURU NANAK COLLEGE OF COMMERECE

SION KOLIWADA , MUMBAI-37

CERTIFICATE
This is certify that Mrs. Ankita Chindaria Roll No.08 of Third Year B.M.S,
Semester V(2016-2017) has successfully completed the project on on Financial analysis on
ICICI Bank under the guidance of Supriya Yadav

Course coordinator
Project guide/Internal examiner
External examiner

Principal

INDEX
S.N
O.
1
2
3
4
5
6
7
8
9
10
11

TOPIC
INTRODUCTION OF BANKING
INTRODUCTION TO ICICI BANK
VISION AND MISSION
ORGANISATION AND
STRUCTURE OF ICICI BANK
AWARD AND NOMINATION
RESEARCH AND METHODOLOGY
FINANCIAL ANALYSIS
FINANCIAL STATEMENT
INTERPRETATION
CONCLUSION
BIBLOGRAPHY

PAGE NO.

Financial Performance
of

Executive Summary
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 the financial position of an
enterprise at a particular point of time. Profit and 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 Investors, Finance Experts, Management Executives and
the Bankers all analyze these statements. 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 statement is necessary because it
help in depicting the financial position on the basis of past and current records. Therefore, it is
very necessary for every organization whether it is a financial or manufacturing etc. to make
financial statement and to analyze it.

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

History of Banking in India

Banking in India in the modern sense originated in the last decades of the 18th century.
Among the first banks were the Bank of Hindustan, which was established in 1770 and
liquidated in 1829-32; and the General Bank of India, established in 1786 but failed in
1791.
The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It
originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of
Bengal. This was one of the three banks funded by a presidency government, the other
two were the Bank of Bombay and the Bank of Madras. The three banks were merged in
1921 to form the Imperial Bank of India, which upon India's independence, became the
State Bank of India in 1955. For many years the presidency banks had acted as quasicentral banks, as did their successors, until the Reserve Bank of India was established in
1935, under the Reserve Bank of India Act, 1934.
In 1960, the State Banks of India was given control of eight state-associated banks under
the State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate
banks.In 1969 the Indian government nationalised 14 major private banks. In 1980, 6
more private banks were nationalised. These nationalised banks are the majority of
lenders in the Indian economy. They dominate the banking sector because of their large
size and widespread networks.
Generally banking in India is fairly mature in terms of supply, product range and reacheven though reach in rural India and to the poor still remains a challenge. The
government has developed initiatives to address this through the State Bank of India

expanding its branch network and through the National Bank for Agriculture and Rural
Development with facilities like microfinance.

Introduction to ICICI Bank

ICICI Bank is India's largest private sector bank with total assets of Rs. 6,461.29 billion (US$
103 billion) at March 31, 2015 and profit after tax Rs. 111.75 billion (US$ 1,788 million) for the

year ended March 31, 2015. ICICI Bank currently has a network of 4,183 Branches and 13,617
ATM's across India.
ICICI (Industrial Credit and Investment Corporation of India) Bank was originally promoted in
1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary.
ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in
India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000,
ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001,
and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002.
ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a development financial
institution for providing medium-term and long-term project financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of products
and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or financial institution from
non-Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking, the
managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both entities, and would create the optimal
legal structure for the ICICI group's universal banking strategy. The merger would enhance value
for ICICI shareholders through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in the payments system
and provide transaction-banking services. The merger would enhance value for ICICI Bank
shareholders through a large capital base and scale of operations, seamless access to ICICI's
strong corporate relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based services, and access to
the vast talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI
and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve
Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking
operations, both wholesale and retail, have been integrated in a single entity.
The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh,
Thailand, Malaysia and Indonesia. The company's UK subsidiary has established branches in
Belgium and Germany.

Objectives

10

The main objectives of this project are as follows

To study about ICICI bank and its related aspects like its products and services,
history, organization structure, subsidiary companies, etc.
To analyse the financial statement i.e Profit & Loss account and Balance sheet.
To learn about P & L account, Balance Sheet and different types of Assets and
Liabilities.
To understand the meaning and needs of Balance sheet and Profit & Loss account.
The purpose is to portray the financial position of ICICI bank with the help of
Balance sheet and Profit & Loss account.
To evaluate the financial soundness, stability and liquidity of ICICI bank.

Board of Directors

Mr. M. K. Sharma, Chairman

Mr. DileepChoksi
Mr. Homi R. Khusrokhan

11

Mr. M.S. Ramachandran

Dr. Tushaar Shah
Mr. V. K. Sharma
Mr. V. Sridar
Mr. AlokTandon
Ms. ChandaKochhar,Managing Director & CEO
Mr. N. S. Kannan, Executive Director
Mr. K. Ramkumar, Executive Director
Mr. Rajiv Sabharwal, Executive Director
Ms. VishakhaMulye, Executive Director

Board of Committee
Audit Committee

Board

Governance,

Remuneration

Mr. Homi R. Khusrokhan,Chairman

Nomination Committee
Mr. Homi R. Khusrokhan, Chairman

Mr. DileepChoksi, Alternate Chairman

Mr. M. K. Sharma

Mr. M. S. Ramachandran

Mr. M. S. Ramachandran

Mr. V. Sridar
Corporate Social Responsibility Committee
Mr. M. S. Ramachandran, Chairman

Customer Service Committee

Mr. M. S. Ramachandran, Chairman

Dr. Tushaar N. Shah

Mr. V. Sridar

Mr. AlokTandon

Mr. AlokTandon

Ms. ChandaKochhar
Credit Committee
Ms. ChandaKochhar, Chairperson

Ms. ChandaKochhar
Information Technology Strategy Committee
Mr. Homi R. Khusrokhan, Chairman

Mr. Homi R. Khusrokhan

Mr. V. Sridar

Mr. M. S. Ramachandran
Fraud Monitoring Committee

Ms. ChandaKochhar
Risk Committee

Mr. V. Sridar, Chairman

Mr. M.K. Sharma, Chairman

Mr. DileepChoksi

Mr. DileepChoksi

Mr. Homi R. Khusrokhan

Mr. Homi R. Khusrokhan

Mr. V. K. Sharma

Mr. V. K. Sharma

Ms. ChandaKochhar

Mr. V. Sridar

Mr. Rajiv Sabharwal

Mr. AlokTandon

&

12

Stakeholders Relationship Committee

Ms. ChandaKochhar
Committee of Executive Directors

Mr. Homi R. Khusrokhan, Chairman

Ms. ChandaKochhar, Chairperson

Mr. V. Sridar

Mr. N. S. Kannan

Mr. N. S. Kannan

Mr. K. Ramkumar
Mr. Rajiv Sabharwal
Ms. VishakhaMulye

Review Committee for identification of wilful

defaulters/non co-operative borrowers

Managing Director & CEO, Chairperson

Any Two Independent Directors

VISION AND MISSION OF ICICI BANK

VISION:
To be the leading provider of financial services in India and a major global bank.
MISSION:
To leverage our people, technology, speed and financial capital to:

be the banker of first choice for our customers by delivering high quality, world-class

products and services.

expand the frontiers of our business globally.
play a proactive role in the full realisation of Indias potential.

13

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.

ICICI Group Companies

1. ICICI Bank - ICICI Bank is India's largest private sector bank with total assets of Rs.
6,461.29 billion (US$ 103 billion) at March 31, 2015 and profit after tax Rs. 111.75
billion (US$ 1,788 million) for the year ended March 31, 2015. ICICI Bank currently has
a network of 4,183 Branches and 13,617 ATM's across India.
2. ICICI Prudential Life Insurance - It is a joint venture between ICICI Bank, a premier
financial powerhouse, and Prudentialplc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential Life was amongst the first
private sector insurance companies to begin operations in December 2000 after receiving
approval from Insurance Regulatory Development Authority (IRDA). lClCl Lifes total
premium for fiscal 2015 was Rs. 153.07 billion and new business annualised premium
equivalent premium was Rs. 47.44 billion. The profit after tax was Rs. 16.34 billion in
fiscal 2015 compared to Rs. 15.67 billion in fiscal 2014.
3. ICICI Lombard General Insurance Company - It is a joint venture between ICICI
Bank Limited and Fairfax Financial Holdings Limited, a Canada based financial services
company engaged in general insurance, reinsurance, insurance claims management and
investment management. ICICI Lombard GIC Ltd. is the largest private sector general
insurance company in India with aGross Written Premium (GWP) of Rs. 69.14 billion in
fiscal 2015.The company witnessed an increase in policy volumes by 24% from 11.2
million in FY2014 to 13.9 million in FY2015. ICICI Generals profit before tax increased
from Rs. 5.20 billion in FY2014 to Rs. 6.91 billion in FY2015. However, the increase in

14

profit after tax was lower from Rs. 5.11 billion in FY2014 to Rs. 5.36 billion in FY2015,
due to lower tax charge in FY2014 as a result of tax benefit on losses carried forward
4.

from earlier years.

ICICI Securities Ltd. - It is the largest integrated securities firm covering the needs of
corporate and retail customers through investment banking, institutional broking, retail
broking and financial product distribution businesses. Among the many awards that ICICI
Securities has won, the noteworthy awards for 2012 were: Asiamoney `Best Domestic
Equity House for 2012; 'BSE IPF D&B Equity Broking Awards 2012' under two
categories:- Best Equity Broking House - Cash Segment and Largest E-Broking House;
the Chief Learning Officer Award from World HRD Congress for Innovation in Learning
category. IDG India's CIO magazine has recognized ICICI Securities as a recipient of
CIO 100 award in 2009, 2010, 2011 and 2012. I-Sec won this awards 4 times in a row for
which the CIO Hall of Fame award was additionally conferred in 2012.
In fiscal 2015, ICICI Securities continued to expand its client base across various
business segments, assisting its customers in meeting their financial goals by providing
them with research, advisory and execution services. The companys client base
comprises corporates, institutional investors and over 3.3 million retail customers. The
companys was able to leverage its strong franchise to capitalize on the positive
momentum in capital markets and achieve a consolidated profit after tax Rs. 2.94 billion

in fiscal 2015 compared toRs. 0.91 billion in fiscal 2014.

5. ICICI Prudential Asset ManagementCompany- It is the third largest mutual fund with
average asset under management of Rs. 1,485.60 billion for the quarter ended March
2015. The company increased its overall market share to 12.9% at March 31, 2015, with
equity market share increasing from 11.1%at March 31, 2014 to 13.5% at March 31,
2015. The company won several awards for its fund performance including the Asia
Asset Management Annual Best of the Best Awards 2014 for Indias Best Fund House,
the Outlook Money 2014 Best Fund House Award and Money Today - FPCIL 2014
Best Debt Fund House Award. The Company manages a comprehensive range of mutual
fund schemes and portfolio management services to meet the varying investment needs of
its investors through117 branches and 196 CAMS official point of transaction acceptance
spread across the country.

15

6. ICICI VentureFunds Management Company- ICICI Venture has established itself as

one of Indias most diversified alternative asset managers with a presence across private
equity, real estate, infrastructure and special situations. During fiscal 2015, the special
situations fund (AION) to which ICICI Venture is an advisor under a strategic alliance
with a leading global company (Apollo Global Management, US) concluded its final
closing at USD 825 million. AION is one of the largest India focused alternative funds
ever raised from the global investor community. ICICI Venture is a wholly owned
subsidiary of ICICI Bank.
7. ICICI Direct - ICICIdirect Centre for Financial Learning (ICFL) is an educational
initiative of ICICI Securities Limited. It strive to offer best in the class financial learning
programmes, through one of the most superior and practical learning approaches that
would help students and professionals reach their career goals and investors and traders
build expertise to invest and trade.
With an objective to be one of the most preferred provider for education on Finance, it
offer premium education programmes ranging from Investor and Trader focused skill
enhancement programmes on Stock investing, Technical Analysis and Derivatives
Trading to certification programmes on Financial Planning and Wealth Management.
It is an Authorised Education Partner of Financial Planning Corporation (India) Pvt. Ltd.
(FPCIL) to offer Certified Financial PlannerCM certification in India.
8. ICICI Securities Primary Dealership Limited (I-Sec PD) - It is the largest primary
dealer in Government Securities. It is an acknowledged leader in the Indian fixed income
and money markets, with a strong franchise across the spectrum of interest rate products
and services - institutional sales and trading, resource mobilisation, portfolio management
services and research. One of the first entities to be granted primary dealership license by
RBI, I-Sec PD has made pioneering contributions since inception to debt market
development in India. I-Sec PD is also credited with pioneering debt market research in
India. It is one of the largest portfolio managers in the country and amongst PDs,
managing the largest AUM under discretionary portfolio management.
The Company is one of the fund managers managing the corpus belonging to Employees
Provident Fund Organisation, Indias largest retirement fund. The Company managed
multiple corporate debt placements aggregating to Rs. 1,241.13 billion in fiscal 2015.

16

I-Sec PDs leadership position and research expertise have been consistently recognised
by domestic and international agencies. In recognition of our performance in the Fixed
Income market, we have received the following awards:
Best Domestic Bond House in India 2007, 2005, 2004, 2002 by Asia Money.
Best Bond House - 2009, 2007, 2006, 2005, 2004, 2001 by Finance Asia.
Best Domestic Bond House 2009 & 2014 by The Asset Magazines annual

Triple A Country Awards.

Ranked volume leader - by Greenwich Associates in 2010 Asian Fixed-Income
Investors Study. Ranked 5th in Domestic Currency Asian Credit with market

share of 4.5%, Only Domestic entity to be ranked.

Best Debt House in India 2012 by EUROMONEY.

Organizational Structure of ICICI Bank

ICICI Banks Organizational structure is designed to be flexible and customer-focused, while
seeking to ensure effective control and supervision and consistency in standards across the
organization and all areas of operations to overall organizational objectives. The Organization
structure is divided into five principal groups Retail Banking, Wholesale Banking,
International Banking,Project finance and special assets management, and Corporate Banking.
1. Retail Banking - Retail banking is a key element of their growth strategy. ICICI
Bank is India's largest private sector bank with total assets of Rs. 6,461.29 billion
(US$ 103 billion) at March 31, 2015. ICICI Bank has been at the forefront in
leveraging technology in banking, through the launch of innovative products and
solutions aimed at making banking more convenient to customers. The Bank has a
multi-channel delivery model in line with its strategy to be present where its
customers are. The Bank introduced a range of innovative products and services in
fiscal 2015 leveraging digital technology and mobile communications. Pockets,
Indias first digital bank was one of the major innovative offerings launched by the

17

Bank. Anyone, including those who are not the Banks existing customers can
instantly download the e-wallet, fund it from any domestic bank account and start
transacting immediately. This is the only e-wallet which allows users to transact on
any website or mobile application in India. It allows users to instantly send/request
money to/from any e-mail id, mobile number, friends on Facebook and bank account.
The users can also pay bills, recharge prepaid mobiles, book movie tickets, order
food, send physical & e-gifts and split & share expenses with friends by using this ewallet. Users can choose to add a savings account to the wallet, which will allow
them to earn interest on their idle money.These initiatives have helped the Bank
achieve robust growth in its retail business.
2. Wholesale Banking - The Wholesale Banking Group focuses on servicing corporate
customers through customized financial solutions for enabling business in India and
key overseas geographies. The group specialises in analyzing business and financial
requirements of its clients and providing solutions through various products, such as
working capital finance,export finance, trade, transaction & commercial banking and
rupee and foreign currency term loans. The group comprises several teams focused on
specific areas to facilitate specialisation and customized product offerings to the
Banks clients.
3. International Banking - The development of a strong international presence would
enable the bank to diversify risks across geographies, support the cross-border needs
of customers, accelerate growth and profitability and build domestic capabilities to
match international standards. The Banks international banking strategy is focused
on specific growth drivers: providing end-to-end solutions for the international
banking requirements of its Indian corporate clients; leveraging economic corridors
between India and the rest of the world; and establishing ICICI Bank as the preferred
bank for Non-Resident Indians (NRI) in key global markets. Further, ICICI Banks
International Banking Group seeks to partner with global corporations as they expand
in India. The Bank also seeks to build stable and diversified international funding
sources and strong syndication capabilities to support its corporate and investment
banking business.
4. Project Finance- The project finance environment continued to remain challenging
during fiscal 2015 largely due to a slowdown in new project commitments by

18

corporates, coupled with implementation and operational issues affecting ongoing

project investments. During the year, several growth-oriented policy initiatives were
unveiled by the Government to resolve existing bottlenecks, improve ease of doing
business and unlock project profitability. As the benefits of these measures become
visible, the Bank expects to see an improvement in the investment outlook in the
economy.
The Banks deep sectoral expertise along with innovative structuring capabilities has
enabled the team to pursue opportunities that cater to the long-term financing
requirements of Indian corporates. Manufacturing and infrastructure development are
critical focus areas to improve the economic potential of the country and the Bank
remains committed to partnering with companies in financing viable projects.
5. Corporate Banking - ICICI Bank seeks to provide innovative financial solutions to
its corporate clients, tailored to meet their requirements, while diversifying its
revenue streams and generating adequate return on risk capital through risk-based
pricing models and proactive portfolio management.
It offer a complete range of Corporate Banking Products including rupee and foreign
currency debt, working capital credit, transaction banking product and services etc.
6. Rural & Inclusive Banking - The Bank has always believed in the potential of rural
India as an important contributor to Indias economic growth and its progress being
integral to ensure a sustainable and balanced development. The Bank has always
endeavoured to meet the financial needs of the segment through several innovative
channels, products and services.At the end of fiscal 2015, the Bank had more than
2,100 branches in rural and semi-urban locations, comprising 52% of the Banks
branch network. Of these, 460 branches are in villages, which were previously
unbanked. The Bank offers institutional credit to rural customers at their doorstep
through its relationship banking approach. The Bank offers various types of loans
covering the entire agricultural value chain including loans to seed/input dealers, crop
loans and loans for purchasing irrigation equipment, raising cattle and purchasing
tractors & other farm equipments.
Financial inclusion is a national priority and is being pursued by multiple
stakeholders including the Government, banks and non-bank enterprises. ICICI Bank
has emerged as a significant player in the financial inclusion space in the country.

19

Product and Services

ICICI Bank provides a wide array of banking products and financial services to its retail and
corporate customers. It has a wide variety of delivery channels and specialized affiliates and
subsidiaries that ensure the flow of its offerings in the areas like investment banking, venture
capital, life and non-life insurance and asset management. This bank is also India's largest credit
card issuer.
Deposits
Following deposits are offered:
1. Savings Account: Convenience is the name of the game with ICICI banks savings
account. Whether it is an ATM/debit card, easy withdrawal, easy loan options or
2.
3.
4.
5.
6.
7.
8.
9.

internet banking, ICICI banks saving account always keep you in touch of money.
Advantage Deposit
Special Savings Account
Life Plus Senior Citizens Savings Account
Fixed Deposits
Security Deposits
Recurring Deposits
Tax-Saver Fixed Deposit
Young Stars Savings Account:A special portal for children to learn banking basics,

manage personal finances and have a lot of fun.

10. Child Education Plan

20

11. Bank@Campus: This student banking services gives students access to their account
details at the click of a mouse. Plus, the student gets a cheque book, debit card and
annual statements.
12. Salary Account
13. Advantage Woman Savings Account
14. EEFC Account
15. Resident Foreign Currency (Domestic) Account
16. Privilege Banking
17. No Frills Account
18. Rural Savings Account
19. People's Savings Account
20. Self Help Group Accounts
21. Outward Remittance
22. Freedom Savings Account
23. Family Banking
Loans
ICICI Bank offers following loan facilities:
1. Home Loans - ICICI Bank is the largest provider of Home Loans in India. ICICI Home
Loans offer unbeatable benefits to ensure that its clients get the best deal without any
hassles. ICICI Bank Home Loans provide loans not only at competitive interest rates, but
also are so designed that they cater to the specific needs of consumers.
New products / New features in existing products are introduced from time to time based
on customer feedback. ICICI Bank offers easy home loans for purchase or construction of
flat or house.
The benefits associated with ICICI Home Loans which give them an edge over other

2.
3.
4.
5.
6.

players in the market are:

i)Attractive and customer friendly loan interest rates
ii)Loans as low as INR 0.2 million is available
iii)Term loans up to 20 years is available
iv)Loans come with a Free Personal Accident Insurance Policy
v)Premium charged in case of insurance options for Home Loans is also attractive.
vi)Simplified Documentation
vii)Doorstep Service
viii)Home Loans can be sanctioned even before selecting a property.
Loan Against Property
Personal Loans
Car Loans
Two Wheeler Loans
Commercial Vehicle Loans

21

7. Loans Against Securities

8. Loan Against Gold Ornaments
9. Pre-approved Loans
ICICI Bank Credit Cards
The provision of paying for an expensive commodity in easy installments is the basic advantage
of using a credit card. An ICICI Credit Card provides the facility of cash, convenience and a
range of benefits, anywhere in the world.
ICICI Bank offers a range of cards, each designed for a specific purpose as follows:
1. Premium Card - The Premium Credit Card from ICICI Bank provides the card bearer, the
benefits of owning an exclusive Credit Card for his/her convenience and usage. The card
includes special deals to complement the bearer's lifestyle. Other cards in this category
include Super Gold Credit Cards, Platinum Credit Cards along with Travel Cards for
Airmiles, the best holiday packages and air tickets. A Golf Credit Card comes with a free
membership of the Indian Golf Union along with special Golfing benefits.
2. Co-branded Card - The Co-branded Credit Card provides access to various useful
commodities the consumption of which would otherwise be expensive. For example an
ICICI Bank Co-branded Card of a departmental chain can enable the consumer to buy
3.
4.
5.
6.
7.

commodities at a lesser cost than he would normally have to do without the card.
Classic Card
Affinity Card
Picture Card
Corporate Card
EMI Card - EMI Credit Card provides unique credit facility, where the customer's
monthly EAD (EMI Amount Due) is fixed and inclusive of all charges. Any incremental
purchases will not increase the EAD paid by the customer but only result in the

proportionate increase in the tenure of repayment.

8. Preferred Card
9. Value for Money Card - The Value for Money Credit Card is the first in India of its kind.
A no-frills Card packed with benefits that matter. India's only internationally valid Value
for Money Photo Card offers an unmatched combination of features and convenience.
ICICI Bank Investments Plans
1. ICICI Bank Tax Saving Bonds

22

2.
3.
4.
5.
6.
7.

Mutual Funds
Government of India Bonds
Initial Public Offers (IPO) by Corporates
Foreign Exchange Services
ICICI Bank Pure Gold
Senior Citizens Savings Scheme, 2004

Insurance Plans
1. Home Insurance
2. Health Insurance
3. Health Advantage Plus
4. Family Floater
5. Personal Accident
6. Travel Insurance
7. Individual Overseas Travel Insurance
8. Student Medical Insurance
9. Motor Insurance
10. Car Insurance
11. Two Wheeler Insurance
12. Life Insurance
13. ICICI Pru Life Time Gold
14. ICICI Pru Life State RP
NRI Services By ICICI Bank
Following services are offered to the NRIs:
1. Money Transfer
2. Bank Accounts
3. Investments
4. Home Loans
5. Insurance
6. Loans Against FD
ICICI Mobile Banking
A user friendly automated service menu offers customers, a convenient access to their
accounts coupled with security. All the transactions are protected by a ATM PIN
(Personal Identification Number) which is a personal password to their respective Bank
& Credit Card Account and T-pin in case of De-mat Account . Any additional assistance
is provided by the Phone Banking Officers (PBOs).
Some of the Phone Banking services offered by ICICI Bank are:
1. Bank services:
i)Account Balance
ii) Mini Statement
iii) Cheque Book Request
iv) Cheque Status Enquiry

23

v) Stop Cheque Payment

vi) Utility Bill Payment
vii) Internet User id
viii)Mobile banking Registration
2. Card Services:
i)Outstanding Balance
ii) Details of Last Statement
iii) Details of Last Payment
iv)Last five Transactions
v) Reward Points status
De-mat Services:
1. ISIN query
2. Holding statement
3. Transaction History
4. Submitting Delivery Instructions
5. Request for Instruction Booklet
6. Information on Redemption: Information on Interest
7. Information on Despatch of Bonds certificates.
Other Services:
1. Loss or Replacement of card
2. Re-issue of ATM PIN
3. Standing Instructions
4. Complaints and suggestions
5. Inquire about any ICICI Bank product.

Awards and Recognitions

24

Awards - 2016

1. ICICI Bank has won two awards in the categories of Best Retail Bank in
India and Best Employee Engagement Initiative in Asia Pacific, MiddleEast and Africa at the Asian Banker Excellence in Retail Financial Services
International Awards 2016. The award programme is the most prestigious of
its kind in the industry. More than 250 banks across 42 countries were
evaluated for the awards this year.
2. ICICI Bank received two awards at the IBA Banking Technology Awards
2016. In the large banks segment, the Bank was declared winner in the
category of 'The Best Use of Technology to Enhance Customer Experience'
and runner up in the category of 'The Best Use of Digital and Channels
Technology'.
3. ICICI Bank won the 'Global Safety Awards 2016' organized by The Energy
and Environment Foundation. This award is sponsored by Ministry of Power,
Ministry of Petroleum & Natural Gas and Ministry of Coal, Government of
India.

Awards 2015

1. ICICI Bank was declared the winner in the Sustainable Business category and
runners up in the Big Data & Analytics category at the EFMA- Accenture
Innovation Awards in Amsterdam.
2. ICICI Bank won the 'Best Local Trade Finance Bank in India' at Global Trade
Review (GTR) 'Asia Leaders in Trade Awards 2015'.

25

3. Ms. ChandaKochhar featured in Fortune Indias list of Most Powerful Women in

Business.
4. ICICI Bank won awards in the categories of Use of Technology for Fraud
Prevention and NPA Management among large banks and Evangelising
Technology Adoption among large banks at the IDRBT Banking Technology
Excellence Awards 2015.
5. ICICI Bank won Best Private Sector Bank under Global Business category at
the Dun & Bradstreet Banking Awards 2015.
6. ICICI Bank won a total of seven awards at the National Award for Excellence in
Energy Management 2015 organized by the Confederation of Indian Industry
(CII).

Awards 2014

1. ICICI Bank has ranked second at the 'National Energy Conservation Award 2014'
under the office buildings (less than 10 lakh kWh/year consumption) category.
2. Ms. ChandaKochhar received an honorary Doctor of Laws from Carleton
University, Canada. The university conferred this award on Ms. Kochhar in
recognition of her pioneering work in the financial sector, effective leadership in a
time of economic crisis and support for engaged business practices.
3. MrRakeshJha has been ranked as the Best CFO in India at the 14th Annual
Finance Asia's Best Managed Companies Poll.
4. ICICI Bank has been awarded the 'Best Retail Bank in India', 'Best Microfinance
Business' and Best Retail Banking Branch Innovation' under the 'Excellence in
Retail Financial Services awards 2014' by The Asian Banker.

26

5. MsChandaKochhar, MD & CEO, ICICI Bank, has been named among Fortune's
50 most powerful women in business for the fourth consecutive year.
6. Ms. ChandaKochhar, MD and CEO received the 'Mumbai Women Of The
Decade' award by ASSOCHAM.

RESEARCH METHODOLOGY

Research Methodology is a way to systematically study and solve the research problems. A
Researcher must clearly state the methodology adapted in conducting the research so that it will
help the reader to judge whether the work done is sound or not.

Objective of 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.The main objectives of this project are the
following:
i.
To study about ICICI BANK and its related aspects like its products & services,
history, organizational structure, subsidiary companies etc.

27

ii.

To analyze the financial statements i.e. Profit & loss A/c and Balance Sheet of

iii.
iv.
v.

ICICI.
To understand the meaning and need of P&L A/c and Balance Sheet.
To assess short and long-term solvency.
To learn about P&L Account, Balance-sheet and different type of Assets&

vi.

Liabilities in any bank.

The purpose is to portray the financial soundness,stability and liquidity of ICICI
BANK.

Research Design
The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will
effectively address the research problem; it constitutes the blueprint for the collection,
measurement, and analysis of data. There are many ways to classify research designs, but
sometimes the distinction is artificial and other times different designs are combined.
Nonetheless, the list below offers a number of useful distinctions between possible
research designs:
i.
Descriptive (e.g., case-study, naturalistic observation, Survey)
ii.
Correlational (e.g., case-control study, observational study)
iii.
Semi-experimental (e.g., field experiment, quasi-experiment)
iv. Experimental (Experiment with random assignment)
v. Review (Literature review, Systematic review)
vi.
Meta-analytic (Meta-analysis)
DescriptiveResearch design is used in this study because it will ensure the
minimizationof bias and maximization of reliability of data collected. Descriptive
study is based onsome 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 alreadyavailable through financial statements of earlier years
and analyze these to make criticalevaluation of the available material. Hence by
making the type of the research conducted to be bothDescriptiveandAnalytical in
nature.
Data Collection Method
The process of data collection begins after a research problem has been defined. There
are two types of data:

28

i.

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

ii.

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 ofData used in the Study:
The required data for the study are basicallySecondaryin nature and the data

arecollected from various journals, articles and annual reports of the Bank.
Limitation of Study
i.
Difficulty in data collection.
ii.
Limited Knowledge about the bank in initial stages.
iii.
The analysis and interpretation are based on secondary data contained in
iv.

published annual reports of the bank.

Due to limited time available, the studied has been confined for period of 5 years

v.

(FY2010-11 to FY 2014-15).
Inter-Firm Comparison was not possible due to non-availability of competitors

vi.

data.
Standalone Profit and Loss Account and Balance Sheet of the bank has been used
excluding the Consolidated one and Schedules.

29

Financial Performance Analysis

Meaning of Financial Statements:

A financial statement (or financial report) is a formal record of the financial activities and
position of a business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form easy to
understand. They typically include basic financial statements, accompanied by a management
discussion and analysis:
i.

A balance sheet, also referred to as a statement of financial position, reports on a

ii.

company's assets, liabilities, and owners equity at a given point in time.

An income statement, also known as a statement of comprehensive income, statement of
revenue & expense, P&L or profit and loss report, reports on a company's income,
expenses, and profits over a period of time. A profit and loss statement provides
information on the operation of the enterprise. These include sales and the various

iii.

expenses incurred during the stated period.

A statement of changes in equity, also known as equity statement or statement of
retained earnings, reports on the changes in equity of the company during the stated

iv.

period.
A cash flow statement reports on a company's cash flow activities, particularly its
operating, investing and financing activities.
For large corporations, these statements may be complex and may include an extensive
set of footnotes to the financial statements and management discussion and analysis.

30

The notes typically describe each item on the balance sheet, income statement and cash
flow statement in further detail. Notes to financial statements are considered an integral
part of the financial statements.
Meaning of Financial Analysis:
Financial analysis (also referred to as financial statement analysis or accounting analysis or
Analysis of finance) refers to an assessment of the viability, stability and profitability of a
business, sub-business or project.
Purpose of Analysis of financial statements:
a.
b.
c.
d.
e.
f.
g.
h.

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 management.
To provide useful information to management.

Methods or Techniques Of Financial Statement Analysis:

Financial statement analysis can be performed by applying a number of methods or techniques.
The following are the important methods or techniques of financial statement analysis:
1. Ratio Analysis: Ratio analysis is the analysis of the interrelationship between two financial
figures.
2. Cash Flow Analysis: Cash flow analysis is the analysis of the change in the cash position
during a period.
3. Comparative Financial Statements: Comparative financial statement is a analysis of financial
statements of the company for two years or of the two companies of similar types.
4. Trend Analysis: Trend analysis is the analysis of the trend of the financial ratios of the
company over the years.

31

The methods to be selected for the analysis depend upon the circumstances and the users' need.
The user or the analyst should use appropriate methods to derive required information to fulfill
their needs.
Financial Statements of ICICI Bank Limited

1. Balance Sheet at March 31, 2015

Rs. in 000s
Particulars

Schedule

At

At

31.03.2015

31.03.2014

11,596,608

11,550,446

74,388792,622,55

65,744

7
3,615,627,301

720,517,086
3,319,136,570

Borrowings

1,724,173,498

1,547,590,539

Other liabilities and provisions

317,198,572

347,555,454

6,461,292,924

5,946,415,839

CAPITAL AND LIABILITIES

Capital

Employees stock options outstanding

Reserves and Surplus
Deposits

TOTAL

ASSETS
Cash and balances with Reserve

256,529,069

218,218,262

166,517,084

197,077,695

Investments

1,865,800,348

1,770,218,164

Advances

3,875,220,728

3,387,026,492

Fixed assets

10

47,255,187

Other assets

11

249,970,508

327,093,866

6,461,292,924

5,946,415,839

8,519,776,091

7,814,304,451

Bank of India
Balances with banks and money
at call and short notice

TOTAL
Contingent liabilities

12

46,781,360

32

Bills for collection

The Schedules referred to above form
an integral part of the Balance Sheet.

162,129,670

135,349,056

33

2. Profit and Loss Account for the year ended March 31, 2015
Rs. in 000s
Particulars

Schedule

Year

ended Year

ended

31.03.2015

31.03.2014

490,911,399

441,781,528

121,761,305

104,278,721

612,672,704

546,060,249

I. INCOME
Interest earned
Other income

13
14

TOTAL INCOME
II. EXPENDITURE
Interest expended

15

300,515,294

277,025,886

Operating expenses

16

114,958,307

103,088,614

Provisions & Contingencies

85,445,554

67,840,979

TOTAL EXPENDITURE

500,919,155

447,955,479

Net profit for the year

111,753,549

98,104,770

Profit brought forward

133,185,885

99,022,874

TOTAL PROFIT/(LOSS)

244,939,434

197,127,644

27,939,000

24,530,000

III. PROFIT/(LOSS)

IV. APPROPRIATIONS/TRANSFERS
Transfer to Statutory Reserve
Transfer to Reserve Fund

7,660

Transfer to Capital Reserve

2,919,250

Transfer to/(from) Investment Reserve

(1,270,000)

46,146
760,000
1,270,000

Account
Transfer to Revenue and other reserves
Transfer to Special Reserve
Dividend (incl. corporate dividend tax)
for the previous year paid
during the year

11,000,000

9,000,000

29,784

(539,685)

34

Proposed equity share dividend

Proposed preference share dividend
Corporate dividend tax

28,988,072
35

26,562,812
35

2,711,469

2,312,451

Balance carried over to balance sheet

172,614,164

133,185,885

TOTAL

244,939,434

197,127,644

Earnings per share (EPS): 2015

Basic - Rs.19.32
Diluted - Rs.19.13
Face Value Per Share - Rs.2.00
The Schedules referred to above form
an integral part of the Profit and Loss Account.

Financial statements Analysis:

1) Cash Flow Statements

35

Rs. in Crs.
Particulars

Mar15

Mar14

Mar13

Mar12

Mar11

13,968.17

11,396.69

8,803.42

6,760.70

4,668.60

11,102.01

9,683.82

(6,908.92)

(12,246.48)

(9,431.56)

(12,280.17)

(2,108.82)

6,838.37

2,989.72

3,829.95

3,105.97

851.59

528.03

905.63

(49.07)

112.08

5,188.21

2,139.23

(5,960.84)

41,529.60

41,417.52

36,229.31

34,090.08

40,050.92

42,304.62

41,529.60

41,417.52

36,229.31

34,090.08

Net Profit/Loss Before 15,819.92

Extraordinary
Items And Tax
Net

CashFlow

From

Operating Activities
Net

Cash

Used

(4,824.49)
In

Investing Activities
Net Cash Used From (9,199.56)
Financing
Activities
Foreign

Exchange 15,005.67

Gains / Losses
Net Inc./Dec In Cash
And Cash

(206.60)

Equivalents
Cash

And

Cash 775.02

Equivalents Beginning
of
Year
Cash

And

Equivalents
Year

Cash
End

Of

2) Comparative Balance Sheet

Rs. in Crs.

36

Particulars

Mar15

Mar14

Mar13

Mar12

Mar11

1,159.66

1,155.04

1,153.64

1,152.77

1,151.82

79,262.26

72,051.71

65,547.84

59,250.09

53,938.82

7.44

6.57

4.48

2.39

0.29

361,562.73

331,913.66

292,613.63

255,499.96

225,602.11

172,417.35

154,759.05

145,341.49

140,164.91

109,554.28

34,755.55

32,133.60

17,576.98

15,986.35

594,641.58

536,794.68

473,647.09

406,233.67

25,652.91

21,821.83

19,052.73

20,461.29

20,906.97

16,651.71

19,707.77

22,364.79

15,768.02

13,183.11

186,580.03

177,021.82

171,393.60

159,560.04

134,685.96

Contingent Liabilities

387,522.07

338,702.65

290,249.44

253,727.66

216,365.90

Bills for Collection

4,725.52

4,678.14

4,647.06

4,614.69

4,744.26

24,997.05

32,709.39

29,087.07

19,515.39

16,347.47

646,129.29

594,641.58

536,794.68

473,647.09

406,233.67

851,977.61

781,430.45

789,989.31

915,465.11

923,121.61

16,212.97

13,534.91

12,394.53

7,572.06

8,530.03

17.00

18.00

19.00

19.00

20.00

EQUITIES

AND

LIABILITIES
Equity Share Capital
Reserves and Surplus
Employees Stock Options
Deposits
Borrowings
Other Liabilities and Provisions
Total
ASSETS
Cash

and

Balances

with 31,719.86

Reserve Bankof India

Balances with Banks Money at 646,129.29
Call and
Short Notice
Investments
Advances
Fixed Assets
Other Assets
Total

Capital Adequacy Ratios (%)

37

Interpretation:
i.

The Capital of the bank increased by 0.40% in 2015 as compared to 2014. This
shows that there is fluctuations in the rate of increase in the capital. In 2015, the

ii.

rate of increase in capital is more than that of 2014 and other previous years.
There is huge fluctuation in the rate of increase in reserves and surplus also. This

iii.

shows that bank is effectively utilizing its reserves and surplus.

In 2015, Deposits increased by 8.93% . The borrowings are also showing the
fluctuate rate of increase. In 2013, the borrowings have increased at a very low
rate. This shows that bank has repaid a large amount of borrowings in this year

iv.

and thereby reducing the dependence on outside debt.

The investments are also increasing but with high ratescompared to the preceding

v.
vi.

years.
Similarly, advances rose by 14.61% in 2014-15.
There has been a consistent decline in the fixed assets over years. In 2014-15, it
increased by 1.01 %, compared to 2010-11 .This is mainly due to increase in the
rate of depreciation in the subsequent years.

38

3) Financial Ratios
Rs. in Crs.
Particulars

Mar15

Mar14

Mar13

Mar12

Mar11

Face Value

2.00

10.00

10.00

10.00

10.00

Dividend Per Share

5.00

23.00

20.00

16.50

14.00

58.39

46.32

29.57

25.72

382.55

347.40

290.99

225.51

57.03

56.92

56.37

52.33

43.05

13.89

13.40

12.48

10.70

9.35

1.73

1.65

1.47

1.34

Turnover 9.88

9.65

9.58

9.33

8.48

Total Debt to Owners 0.08

0.08

0.08

0.08

0.07

4.50

4.53

4.39

4.23

4.10

Dividend Payout Ratio 0.06

0.09

0.09

0.07

0.07

Net Profit

13.81

11.31

10.53

16.71

15.86

Adequacy 25.93

27.07

27.71

29.41

31.30

17.02

17.70

18.74

18.52

19.54

104.72

100.71

99.25

97.71

90.45

Operating Profit Per 14.15

Share (Rs)
Net Operating Profit 84.68
Per Share (Rs)
Return on Long Term
Fund(%)
Return

on

Net

Worth(%)
Net Profit
Total

Income/Capital 1.80

Employed(%)
Assets
Ratios
Fund
Current Ratio
Quick Ratio

Capital
Ratio

Credit Deposit Ratio

39

Interpretation:
i.

Current Ratio: The current ratio is a liquidity and efficiency ratio that measures a
firm's ability to pay off its short-term liabilities with its current assets. The current
ratio is an important measure of liquidity because short-term liabilities are due
within the next year.
Formula:
Current Ratio=Current Asset/Current Liabilities.
An ideal solvency ratio is 2:1. It is Considered as a safe margin of solvency due to
the fact that if current assets are reduced to half (i.e.) 1 instead of 2, then also the
creditors will be able to get their payments in full.
Here, current ratio is less than 2 which shows that bank have current assets just
equal to current liabilities which is not satisfactory as the safe margin is very less
or zero. Therefore, the bank should keep more current assets to maintain

ii.

satisfactory safety margin.

Quick Ratio: In finance, the Acid-test or quick ratio or liquidity ratio measures the
ability of a company to use its near cash or quick assets to extinguish or retire its
current liabilities immediately.
Formula: Quick Ratio=Total Quick Assets/Current Liabilities.
An ideal Quick Ratio is 1:1. Here, the ratio is more than 1, which is satisfactory as

iii.

it means bank has managed its funds properly in this particular period.
Dividend Per Share: Dividend per share (DPS) is the total dividends paid out over
an entire year (including interim dividends but not including special dividends)
divided by the number of outstanding ordinary shares issued.
Formula: Dividend paid to Equity Shareholders/No. of Equity Shares
Here, Dividend paid per share decreased in 2014-15 otherwise it continuously
increased in preceeding years which shows the bank has good dividend paying

40

capacity. In 2014-15, dividend paid declines, so bank has to keep that in mind as it
iv.

may affect its market value.

Net Profit Ratio: The net profit percentage is the ratio of after-tax profits to net
sales. It reveals the remaining profit after all costs of production, administration,
and financing have been deducted from sales, and income taxes recognized.
Formula: Net Profit/Net Sales*100
Net Profit of the bank has been increased continuously. This is because of the

v.

reason that both sales and profit has increased in the same proportion.
Operating Profit Ratio: Many times operating income is classified as earnings
before interest and taxes. Operating income can be calculated by subtracting
operating expenses, depreciation, and amortization from gross income or
revenues. The revenue number used in the calculation is just the total, top-line
revenue or net sales for the year.
Formula: Operating Profit/Net sales*100
From 2010-11 to 2013-14 Operating profit is increased respectively, but in 201415 it declines. This may be due to the reason that operating expenses has been
increased more as compared to sales during the 2014-15 period. Therefore, bank
should check on unnecessary operating expenses to correct this situation and to

vi.

provide sufficient return.

Return on Net Worth: The net worth ratio states the return that shareholders could
receive on their investment in a company, if all of the profit earned were to be
passed through directly to them. Thus, the ratio is developed from the perspective
of the shareholder, not the company, and is used to analyze investor returns.
Formula: Net Profit after Interest and Tax/Shareholders Funds*100
Return on Net Worth has been continuously increased from 2010-11.An
excessively high net worth ratio may indicate that a company is funding its
operations with a disproportionate amount of debt and trade payables. If so, a
decline in its business could result in the inability to pay back the debt.Thus, an
investor relying upon this measurement should also examine company debt levels

vii.

to see how excessive returns are being generated.

Total Income/Capital Employed: Return on capital employed (ROCE) is a
financial ratio that measures a company's profitability and the efficiency with
which its capital is employed.
Formula: Earnings Before Interest and Tax (EBIT) / Capital Employed.

41

The Ratio is 8.48% in 2010-11 after that it continuously rises to 9.88% in 2014viii.

15. It lead to conclusion that bank is rising in the previous years.

Total Debt to Owners Fund: Debt/Equity Ratio is a debt ratio used to measure a
company's financial leverage, calculated by dividing a company's total liabilities
by its stockholders' equity. The D/E ratio indicates how much debt a company is
using to finance its assets relative to the amount of value represented in
shareholders' equity.
Formula: Total liabilities / Total Shareholders' Equity
The ratio shows the extent to which funds have been provided by long-term
creditors as compared to funds provided by owners. Here, Debt/Equity ratio is
high from 2010-11 to 2013-14, which shows that bank is more relying on outside
funds. But in the year 2014-15, ratio decreases, which is satisfactory in view point

ix.

of long-term lenders.
Dividend Payout Ratio: The dividend payout ratio is the percentage of earnings
paid to shareholders in dividends.
Formula: Dividend/Earnings Per Share
The ratio declines from 2010-11 to 2014-15, which indicates that bank may be
providing more dividend to its shareholders or it may invest more in growth

x.

activities, which depends on bank level of maturity.

Credit Deposit Ratio: It is the ratio of how much a bank lends out of the deposits
it has mobilised. It indicates how much of a bank's core funds are being used for
lending, the main banking activity. A higher ratio indicates more reliance on
deposits for lending and vice-versa.
Formula: Credit/Deposits*100
The ratio has been increasing from 90.45 to 104.72 in 2014-15. It leads to
conclusion that credit performance of the bank is very good.

Capital Adequacy Ratio

42

Dividend Payout Ratio

43

ICICI Bank Networth

44

Operating Profit Ratio

45

Total Assets and Assets Turnover Ratio

46

ICICI Net Profit After Tax

47

48

Findings, Suggestions and Conclusions

Findings
a) Profit after tax for the year ended 31st March 2015 (FY2015) was Rs.11,175.35
Cr., compared to Rs.9810.48 Cr. for the year ended 31st March 2014 (FY2014).
b) Net Interest Income increased from Rs. 44,178.15 Cr. for FY2014 to Rs. 49091.14
Cr. for FY 2015. It Increases due to improvement in net interest margin.
c) Operating Expenses (excluding Employee Cost & Depreciation) increased to Rs.
6,087.01 Cr. in FY 2015 from Rs. 5,512.79 Cr. in FY 2014. Asset Turnover Ratio
remained constant at 0.8 from FY 2012 onwards.
d) Total assets increased by 8.7% from Rs. 5,946.42 billion at March 31, 2014 to Rs.
6,461.29 billion at March 31, 2015.
e) Total deposits increased by 8.9% from Rs. 3,319.14 billion at March 31, 2014 to
Rs. 3,615.63 billion at March 31, 2015.
f) The Bank continued to expand its branch network in India. The branch network of
the Bank in India increased from 3,753 branches at March 31, 2014 to 4,050
branches at March 31, 2015. The ATM network of the Bank increased from
11,315 ATMs at March 31, 2014 to 12,451 ATMs at March 31, 2015.
g) India is a young nation, with over 700 million people under 35 years of age. They
spend a lot of time on their mobile phones and on social media. They also prefer
services that are instant, easy and convenient.
Leveraging on this trend, ICICI Bank has introduced a wide range of solutions
and apps to make banking a pleasurable experience for the youth. The Bank
launched Pockets, Indias first digital bank on a mobile phone. With Pockets,
anyone including those who are not customers of ICICI Bank, can instantly
download the e-wallet, fund it from any bank account in the country and start
transacting immediately. Pockets is the only e-wallet that enables users to
transact on any website or mobile application in India. It allows users to instantly
send money to any email id, mobile number, friend on Facebook and bank
account. Users can pay bills, recharge mobiles, book movie tickets, send physical
and e-gifts and split expenses with friends by using this e-wallet.
h) ICICI Bank is the first bank in India to offer its customers the facility to transfer
funds on Twitter. Using icicibankpay, customers can pay a friend, recharge their

49

prepaid mobile phones, check their account balance and view their last three
transactions on Twitter.
i) The Governments vision is to transform India into a digitally empowered society
and a knowledge driven economy. ICICI Bank is supporting this vision through a
host of offerings that leverage technology and help unbanked consumers fulfill
their banking needs.
In fiscal 2015, ICICI Bank undertook a revolutionary Digital Village initiative in
Akodara, Gujarat. Apart from ensuring that every adult in the village has a bank
account, the Bank has enabled cashless payments with the help of RuPay cards
and mobile payments for day-to-day transactions. The Bank upgraded the local
schools infrastructure to enable digital learning and set up a skill development
centre for the youth. The village was also provided with Wi-Fi services, thereby
enabling its residents to stay connected to the rest of the world.
j) In fiscal 2015, ICICI Foundation scaled up its skill development initiative, ICICI
Academy for Skills (ICICI Academy), by increasing the training capacity at
existing centres and launching new centres. It also continued to scale up the
activities of the Rural Self Employment Training Institutes (RSETIs) in
Rajasthan. Through these initiatives, ICICI Foundation provided skill training to
over 20,000 youth during the year.ICICI Academy has 11 centres across India,
including six residential centres at Jaipur, Rajasthan; Coimbatore, Tamil Nadu;
Narsobawadi, Maharashtra; Patna, Bihar; Durg,Chhattisgarh; and Indore, Madhya
Pradesh; and five nonresidentialcentres at Bengaluru, Karnataka; Chennai,
TamilNadu; Hyderabad, Telangana; Pune, Maharashtra; andGuwahati, Assam.
k) 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.

Suggestions
a) The Bank is having a greater reliance on debt capital. The increasing
reliance on external equities may prove hazardous in long run. So in order

50

to remedy this situation, bank should continue to decrease its Debt-Equity

ratio so that it will not have to rely on outside lenders for funds.
b) Though Bank has been successful in increasing its deposits through new
and attractive schemes. It should provide loan to poor persons with less
interest rates and shorter maturity period for FDs.
c) 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.
d) To achieve organizational success a proper independent working
atmosphere should be developed to achieve desired objective more
effectively.
e) Training programmes should be devised for all staff including call centre
and Staff of Direct Sales Associates or Associates of these banks. More
importance should be given to upgrade product knowledge.
f) Right kind of reward to be provided to strong service provider.
g) Last, but not the least, bank should adopt customer oriented service
delivery.

Conclusion
On the basis of various techniques applied for the financial analysis of ICICI Bank wecan arrive
at a conclusion that the financial position and overall performance of the bank is satisfactory. The
income of the bank has increased over the period. The bank has succeeded in maintaining a
reasonable profitability position.The bank has succeeded in increasing its share capital also
which has increased around50% 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 mainobjective. Fixed and current deposits have also shown an increasing trend.Equity
shareholders are also enjoying an increasing trend in the return on their capital.Though current
assets and liabilities (current liquidity) of the bank is not so satisfactory but bank has succeeded

51

in maintaining a stable solvency position over the years. As far asthe ratio of external and
internal equity is concerned, it is clear that bank has been usingmore amount of external equity in
the form of loans and borrowings than owners equity.Banks investments are also showing an
increasing trend. Due to increase in advances,the interest received by the bank from such
advances is proving to be the major source of income for the bank.Pioneering the digital banking
revolution in India, ICICI Bank has been at the forefront of developing solutions, which make
banking simple and convenient for its customers. In line with its philosophy of
KhayaalAapka, the Bank offers digital solutions which are customised to specific segments.
With solutions which make banking more accessible, easy and less time-consuming, ICICI Bank
continues to partner the nation by digitally empowering its citizens.

BIBLIOGRAPHY

WWW.ICICIBANK.COM
WWW.SCRIBD.COM
WWW.WIKIPEDIA.COM
WWW.MONEYCONTROL.COM
WWW.ECONOMICTIMES.IN

52