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An Empirical Study of Financial Performance of Icici Bank
An Empirical Study of Financial Performance of Icici Bank
COMPARATIVE ANALYSIS
Ms. Shikha Gupta
Assistant Professor (Finance & Marketing),
Institute of Innovation in Technology and Management, Janakpuri. New Delhi.
E-Mail- shikhagupta.iitm@gmail.com
ABSTRACT
In todays financial world, financial performance is a mundane amongst the perspective of various
stakeholders, be it in the management, lenders, owners and investors perspective. And it is out of
analysis of financial statements. Financial performance is crucial for taking financial decisions
related to planning and control. Hence, it forms the basis as one of the paramount importance for
taking financial decisions effectively.
Banking Sector plays an important role in economic development of a country. The banking system
of India is featured by a large network of bank branches, serving many kinds of financial services of
the people Industrial Credit and Investment Corporation of India (ICICI) Bank today is a leading
player in Indian banking industry and is deeply engaged in human and economic development at the
national level. The Bank works closely with ICICI Foundation across diverse sectors and programs.
As of 2014 it is the second largest bank in India in terms of assets and market capitalization. ICICI
bank emerged as a pioneer venture on the horizon of offering an expanded range of banking
products and financial services for corporate and retail customers through its diverse delivery
channels and specialized subsidiaries in the areas of investment banking, asset management, venture
capital and insurance. In the light of its strategic importance in the nation interest, it is crucial to
evaluate the financial performance of the ICICI Bank. And the present study focused on operational
control, profitability and solvency etc. This research paper is aimed to analyse and compare the
Financial Performance of ICICI Bank and offer suggestions for the improvement of efficiency in the
bank.
Keywords:
Advances, ICICI, financial performance, Solvency, Investment banking, Leverage Ratio
INTRODUCTION
Company Profile:
ICICI Bank was originally promoted in 1994 by
the Industrial Credit and Investment Corporation
of India (ICICI), an Indian financial institution,
as a wholly owned subsidiary. ICICI Limited, an
Indian financial institution, and was its whollyowned subsidiary. ICICI was formed in 1955 at
the
initiative
of
the
World
Bank,
the
the
savings
of community
into
bank in India
by market
banking
including
range
services
and
of
financial
banking
and
services
financial
financial
and
both
areas
the companies.
globally.
and geographies.
and ethics.
operate.
industrial
investment
and
expansion
of
investment markets.
I.
REVIEW OF LITERATURE
Singh A.B., Tondon P. (2012) examined the
rates,
rationalizing
directed
credit
and
comparative
the
financial
performance
of
bank
performance
is
slightly
less
III.
as
compared
to
41,155.53cr,
technique
statement analysis.
They
of financial
are
useful
RESEARCH METHODOLOGY
company.
Liquidity
Ratios:
Ratios
provide
in
Table 3.
in table 3.
company.
shown in Table 3.
period.
DP
Ratio
27.07,
27.71,
29.41,
is
31.30,
and
37.30
dividend-paying stocks.
assets,
current
and
fixed.
Those
assets
in
company's
generating
its
determining
whether
revenues,
cash,
etc.
from
of
the
management
has
been
improved a lot.
Findings:
After the study of the components of current
assets & current liabilities and the trends of
working capital, it was found that:
quite constant.
its obligations.
performance.
is
continuous
money.
the
indication
of
1275
1154.99
2013-14
2012-13
Total Assets
2011-12
2010-11
2009-10
1,153.64
65,547.84
11,396.69
3,071.22
1,152.77
59,250.09
8,803.43
2,338.17
1,151.82
53,938.83
6,760.71
1,609.33
1,114.89
50,503.48
5,345.32
1,320.34
8,325.47
6,465.26
5,151.38
4,024.98
72.17
56.08
44.72
36.10
Current Ratio
Quick Ratio
Total debt to owners fund(DER)
EPS
Dividend Payout Ratio
Asset Turnover Ratio
Total Assets Turnover Ratios
0.09
11.31
4.53
84.95
27.07
0.08
0.07
0.98
10.53
4.39
72.22
27.71
0.08
0.07
0.12
9.37
4.23
56.09
29.41
0.08
0.06
0.07
15.86
4.10
44.73
31.30
0.07
0.08
0.14
14.70
3.91
36.10
37.31
0.10
0.09
Table 4:
Standalone Profit & Loss account ------------------- in Rs. Cr. ------------------Mar '14
Mar '13
Mar '12
Mar '11
Mar '10
Interest Earned
44,178.15
40,075.60
33,542.65
25,974.05
25,706.93
Other Income
10,427.87
8,345.70
7,502.76
6,647.89
7,292.43
Total Income
54,606.02
48,421.30
41,045.41
32,621.94
32,999.36
Income
Expenditure
Interest expended
Employee Cost
27,702.59
26,209.18
22,808.50
16,957.15
17,592.57
4,220.11
3,893.29
3,515.28
2,816.93
1,925.79
6,056.48
575.97
490.16
42.26
483.52
619.5
12,296.88
9,503.20
8,214.12
7,212.96
2,780.03
Depreciation
Miscellaneous Expenses
Preoperative Exp Capitalised
Operating Expenses
Provisions & Contingencies
Total Expenses
Net Profit for the Year
10,308.86
9,012.89
7,850.44
6,617.24
10,221.99
6,784.10
4,873.76
3,921.22
3,896.17
1,159.81
44,795.55
40,095.83
34,580.16
27,470.56
28,974.37
9,810.48
8,325.47
6,465.26
5,151.38
4,024.98
-0.09
9,902.29
7,054.23
5,018.18
3,464.38
2,809.65
19,712.77
15,379.70
11,483.44
8,615.76
6,834.54
2,656.28
2,307.23
1,902.04
1,612.58
1,337.86
231.25
292.16
220.35
202.28
164.04
84.95
72.22
56.09
44.73
36.1
Extraordionary Items
Profit brought forward
Total
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Earning Per Share (Rs)
Equity Dividend (%)
230
200
165
140
120
633.92
578.65
524.01
478.31
463.01
3,506.65
2,878.03
2,306.49
1,782.45
1,867.22
0.33
0.26
1.04
2,887.53
2,599.39
2,122.39
1,814.86
1,501.90
13,318.59
9,902.29
7,054.23
5,018.18
3,464.38
Total
19,712.77
15,379.71
11,483.44
8,615.75
6,834.54
Mar '14
Mar '13
Mar '12
Mar '11
Mar '10
1,155.04
1,155.04
1,153.64
1,153.64
1,152.77
1,152.77
1,151.82
1,151.82
1,114.89
1,114.89
6.57
4.48
2.39
0.29
0
72,051.71
0
73,213.32
0
65,547.84
0
66,705.96
0
59,250.09
0
60,405.25
0
53,938.82
0
55,090.93
0
50,503.48
0
51,618.37
Deposits
Borrowings
Total Debt
Other Liabilities &
Provisions
Total Liabilities
Assets
Cash & Balances with
RBI
Balance with Banks,
Money at Call
Advances
Investments
Gross Block
3,31,913.66
1,54,759.05
4,86,672.71
2,92,613.63
1,45,341.49
4,37,955.12
2,55,499.96
1,40,164.91
3,95,664.87
2,25,602.11
1,09,554.28
3,35,156.39
2,02,016.60
94,263.57
2,96,280.17
34,755.55
32,133.60
32,998.69
15,986.35
15,501.18
5,94,641.58
5,36,794.68
4,89,068.81
4,06,233.67
3,63,399.72
21,821.83
19,052.73
20,461.29
20,906.97
27,514.29
19,707.77
3,38,702.65
1,77,021.82
4,678.14
22,364.79
2,90,249.44
1,71,393.60
4,647.06
15,768.02
2,53,727.66
1,59,560.04
4,614.69
13,183.11
2,16,365.90
1,34,685.96
4,744.26
11,359.40
1,81,205.60
1,20,892.80
7,114.12
0
4,678.14
0
4,647.06
0
4,614.69
0
4,744.26
3,901.43
3,212.69
0
32,709.39
5,94,641.60
0
29,087.07
5,36,794.69
0
34,937.10
4,89,068.80
0
16,347.47
4,06,233.67
0
19,214.93
3,63,399.71
Accumulated
Depreciation
Net Block
Capital Work In
Progress
Other Assets
Total Assets
EmergingMarkets
Chidambaram
on
Commercial
banking
in
India
new
R.M
Quarterly
and
Journal
Alamelu
of
(1994):
Applying
Operations
Research
pp.38-58
pp 45-55.
Khan,
M.Y.
and
Jain,
P.K.
Financial
In
Subsequent
Years,
I.
M.
(IIMA),Financial
ICICI
Reddy
Growth
Pandey,
Bank:
Sriharsha
K.(2012)
Relative
Bank,
Multidisciplinary
International
Journal
of
Refereed
Contemporary