SUMMER TRAINING PROJECT REPORT

On

“A Study on Financial Statement Analysis of

ICICI Bank”

Towards partial fulfillment of

Integrated Master of Business Administration (IMBA)
School of Management, Babu Banarasi Das University, Lucknow

Submitted by
Keshav Kumar
Roll No. 1160675072

Session 2019-2020

School of Management

BabuBanarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India.
1
 DECLARATION

This is to declare that I, Keshav Kumar student of Integrated Master of Business

Administration (IMBA), have personally worked on the project entitled “A Study

on Financial Statement Analysis of ICICI Bank”. The data mentioned in this report

were obtained during genuine work done and collected by me. The data obtained from

other sources have been duly acknowledged. The result embodied in this project has

not been submitted to any other University or Institute for the award of any degree.

Keshav Kumar
DATE: B.B.D.U, Lucknow

2
 ACKNOWLEDGEMENT

I am highly thankful to, Ms. Shruti Pandey (Faculty Guide) School of Management

Babu Banarasi Das University, Lucknow for his motivating guidance, important

suggestion and support for the completion of this work in time and in great successful

approach. I am also immensely pleased to record my deep sense of gratitude to

all the members of commerce department Babu Banarasi Das University, Lucknow

for their encouragement and suggestion to complete this work successfully I record

my sincere thanks to the Management and Principal of Babu Banarasi Das University,

for providing necessary facilities in undertaking this work. My sincere thanks are

also due to my father and my Mother and all my family , friends for cooperation and

blessing all throughout.

Keshav Kumar

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 EXECUTIVE SUMMARY

In today’s financial world, financial performance is a requirements 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 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 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

although it is private. 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 of the asset, profitability and solvency etc. This training work is

aimed to analyze and compare the Financial Performance of ICICI Bank in five

years period and offer suggestions for the improvement of efficiency in the Bank.

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 TABLE OF CONTENT
Certificate i
Declaration ii
Acknowledgement iii
Executive Summary iv
1. Introduction 1

2. Company Profile 23

Financial analysis of ICICI Bank

3. Objectives of the study 56

4. Research Methodology 58

5. Limitations of the study 63

6. Data Analysis & Interpretation 65

7. Findings 87

8. Suggestions 91

9. Conclusion 94

10. Bibliography 96

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INTRODUCTION

1
 INTRODUCTION

In today’s financial world, financial performance is a requirements 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 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 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 although it is private.

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 of the asset,

profitability and solvency etc.

The study of financial statement is prepared for the purpose of presenting a periodical

review or report by the management and deal with the state of investment in business

and analyse the results achieved during the period under review. They reflect the

financial position and operating strengths or weaknesses of the concern by properly

establishing relationship between the items of the balance sheet and financial

statements.

2
Financial statement analysis can be undertaken either by the management of the firm

or by the outside parties. The nature of analysis differs depending upon the purpose of

the analysis. The analyst is able to say how well the firm could utilize the resource of

the society in generating goods and services. Turnover ratios are the best tools in

deciding these aspects.

Hence it is overall responsibility of the management to see that the resources of the

firm is used most efficiently and effectively and that the firm’s financial position is

good. Financial statement analysis does indicate what can be expected in future from

the firm.

Meaning of Financial Statement

Financial statements refer to such statements which contains financial information

about an enterprise. They report profitability and the financial position of the business

at the end of accounting period. The team financial statement includes at least two

statements which the accountant prepares at the end of an accounting period. The two

statements are: -

 The Balance Sheet

 Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet

mirrors the financial position on a particular date in terms of the structure of assets,

liabilities and owners equity, and so on and the Profit and Loss account shows the

results of operations during a certain period of time in terms of the revenues obtained

and the cost incurred during the year. Thus the financial statement provides a

summarized view of financial position and operations of a firm

Meaning of Financial Analysis

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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.

4
Features of Financial Analysis

 To present a complex data contained in the financial statement in simple and

understandable form.
 To classify the items contained in the financial statement inconvenient and

rational groups.

 To make comparison between various groups to draw various

conclusions.

Purpose of Analysis of financial statements

 To know the earning capacity or profitability.

 To know the solvency.
 To know the financial strengths.
 To know the capability of payment of interest & dividends.
 To make comparative study with other firms.
 To know the trend of business.
 To know the efficiency of mgt.
 To provide useful information to mgt

Procedure of Financial Statement Analysis

 The following procedure is adopted for the analysis and interpretation of

financial statements:-
 The analyst should acquaint himself with principles and postulated of

accounting. He should know the plans and policies of the managements 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

5
standard form. A relationship is established among financial statements with the help

of tools & techniques of analysis such as ratios, trends, common size, fund flow etc.
 The information is interpreted in a simple and understandable way. The

significance and utility of financial data is explained for help indecision making.
 The conclusions drawn from interpretation are presented to the management

in the form of reports.

Analyzing financial statements involves evaluating three characteristics of a

company: its liquidity, its profitability, and its insolvency. A short-term creditor, such

as a bank, is primarily interested in the ability of the borrower to pay obligations when

they come due. The liquidity of the borrower is extremely important in evaluating the

safety of a loan. A long-term creditor, such as a bondholder, however, looks to

profitability and solvency measures that indicate the company’s ability to survive over

a long period of time. Long-term creditors consider such measures as the amount of

debt in the company’s capital structure and its ability to meet interest payments.

Similarly, stockholders are interested in the profitability and solvency of the company.

They want to assess the likelihood of dividends and the growth potential of the stock.

Comparison can be made on a number of different bases.

Following are the three illustrations:

1. Intra-company basis.

This basis compares an item or financial relationship within a company in the

current year with the same item or relationship in one or more prior years. For

example, Sears, Roebuck and Co. can compare its cash balance at the end of the

current year with last year’s balance to find the amount of the increase or decrease.

Likewise, Sears can compare the percentage of cash to current assets at the end of the

current year with the percentage in one or more prior years. Intra-company

6
comparisons are useful in detecting changes in financial relationships and significant

trends.

2. Industry averages.

This basis compares an item or financial relationship of a company with industry

averages (or norms) published by financial ratings organizations such as Dun &

Bradstreet, Moody’s and Standard & Poor’s. For example, Sears’s net income can be

compared with the average net income of all companies in the retail chain-store

industry. Comparisons with industry averages provide information as to a company’s

relative performance within the industry.

3. Intercompany basis.

This basis compares an item or financial relationship of one company with the same

item or relationship in one or more competing companies. The comparisons are made

on the basis of the published financial statements of the individual companies. For

example, Sears’s total sales for the year can be compared with the total sales of its

major competitors such as Kmart and Wal-Mart. Intercompany comparisons are useful

in determining a company’s competitive position.

Tools of Financial Statement Analysis

Various tools are used to evaluate the significance of financial statement data. Three

commonly used tools are these:

 Ratio Analysis

 Funds Flow Analysis

 Cash Flow Analysis

RATIO ANALYSIS:

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A ratio analysis is a statistical yardstick or mathematical expression that provides a

measure of relationship between two figures or amounts. Ratio is simply one number

expressed in terms of another.

The ratio analysis is one of the most powerful tools of financial analysis. It is the

process of establishing and interpreting various ratios (quantitative relationship

between figures and groups of figures). It is with the help of ratios that the financial

statements can be analyzed more clearly and decisions made from such analysis.

Ratio analysis is a technique of analysis and interpretation of financial statements. It is

the process of establishing and interpreting various ratios for helping in making

certain decisions. However, ratio analysis is not an end in itself. It is only means of

better understanding of financial strength and weakness of a firm. Calculation of mere

ratios does not serve any purpose, unless several appropriate ratios are analyzed and

interpreted. There are a number of ratios which can be calculate from the information

given in the financial statements, but the analyst has to select the appropriate from the

same keeping in mind the objective of analysis.

Uses and Significance of Ratio Analysis

A) Managerial uses of ratio analysis:

1. Financial statements are prepared primarily for decision-making, but the

information provided in financial statements is not an end in itself and no

meaningful conclusion can be drawn from these statements alone. Ratio analysis

helps in making decisions from the information provided in these financial

statements.
2. Ratio analysis is of much help in financial forecasting and planning. Planning is

looking ahead and the ratios calculated for a number of years work as a guide for

8
 the future. Meaningful conclusions can be drawn for future from these ratios. Thus

ratio analysis helps in future forecasting and planning.

3. The financial strength and weakness of a firm are communicated in a more and

easy and understandable manner by the use of ratios. The information contained in

the financial statements is conveyed in a meaningful manner to the one for whom

it’s meant. Thus ratios help in communication and hence the value of the financial

statements.
4. Ratio analysis even helps in co-ordination which is of utmost importance in

effective business management. Better communication of efficiency and weakness

of an enterprise results in better co-ordination in the enterprise.

5. Ratio analysis even helps in making effective control of the business. Standard

ratios can be based upon performance of financial statements and variances or

deviations, if any, can be found by comparing the actual with the standards so as

to take a corrective action at the right time.

B) Utility to Shareholders/Investors:
An investor in the company will like to access the financial position of the

concern where he is going to invest. His first interest will be the security of his

investment and then a return in the form of dividend or interest. For the first

purpose he will try to access the value of fixed assets and the loans raised against

them. The investor will feel satisfied only if the concern has sufficient amount of

assets.
Profitability ratios will be useful to determine profitability position. Ratio analysis

will be useful to the investor in making up his mind whether present financial

position of the concern warrants further investment or not.

C) Utility to Creditors:
The creditors or suppliers extend short-term credit to the concern. They are

interested to know whether financial position of the concern warrants their

payments at a specified time or not. The concern pays short-term creditors out of

its current assets. If the current assets are quite sufficient to meet current liabilities

9
 then the creditor will not hesitate in extending credit facilities. Current and acid

test ratios will give an idea about the current financial position of the concern.
D) Utility to Employees:
The employees are also interested in the financial position of the concern

especially profitability. Their wage increases and amount of the make use of

information available in the financial statements. Various profitability ratios

relating to gross profit, operation cost, and net profit enable employees to put

forward their viewpoint for the increase of wages and other benefits

Advantages of Ratio Analysis

1. Ratio analysis simplifies the understanding of financial statements.

2. Ratios bring out the inter-relationship among various financial figures and bring to

light their financial significance. Ratio analysis is a device to analyze and interpret

the financial health of the enterprise.

3. Ratios contribute significantly towards effective planning and forecasting. A study

of a trend in the past works as a helpful guide for the future.

4. Ratios facilitate inter-firm and intra-firm comparisons, thereby bringing out the

strength weakness, efficiency of their firms and their department.

5. Ratios serve as effective control tools. They also facilitate establishment of a

standard costing and budgeting control.

6. Ratios cater to the particular information need of a particular person depending

upon his interest in the business for which ratios are to be calculated. A creditor

may be interested in the liquidity ratios, while an investor may want to study

profitability ratios.

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Limitations of Ratio Analysis:

1) Ratio may not prove to be the ideal tool for inter-firm comparisons. The two firms

may adopt different accounting policies and hence the results might not be

comparable.
2) A study of ratios in isolation, without studying the actual figure, may lead to

wrong conclusions. Ratios are only supplementary to and not substitutes for

absolute figures.
3) Ratios can be as correct as the data on which they are based; if the original data is

not reliable then ratios will be misleading.

4) Ratio analysis suffers from each consistency. Ratios are defined differently by

various experts and hence are prone to manipulations.

5) In the absence of well accepted standards interpretation of ratio becomes

subjective.

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TYPES OF RATIOS

Ratios classified into five categories:

LSTOG OIUVQRNEUV IERODANVLTCEYRP RR AOATFTIIOITOASSB IL T Y R A T IO S

TYPES OF RATIOS CALCULATED FOR THE PRESENT STUDY

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Balance sheet ratios Profit & Loss account Inter statement

ratios (balance sheet and P&L

a/c)
1. Current ratio 1. Gross profit ratio 1. Return on assets

ratio
2. Quick ratio 2. Net profit ratio 2. Fixed asset ratio
3. Proprietary ratio 3. Inventory turnover 3. Creditors turnover

ratio ratio
4. Debt-equity ratio 4. Expense ratio 4. Debtors turnover

ratio
5. Operating ratio. 5. Working capital

turnover ratio

1. LIQUIDITY or SHORT-TERM SOLVENCY RATIOS:

These are the ratios which measure the short-term solvency or financial position

of the 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, the

various liquidity ratios are: current ratio, quick ratio.

A) Current ratio or Working capital ratio: Current ratio is the ratio of current

assets and current liabilities.

 Current assets are the assets which can be converted into cash within one year and

include cash in hand cash at bank, bills receivables, net sundry debtors, stock or

raw material, finished goods and work in progress, prepaid expensed, outstanding

and accrued incomes and short-term or temporary investments.

 Current liabilities are the liabilities which are to be paid within a period of one

year and include bills payable, sundry creditors, bank overdraft, outstanding

expenses, incomes received in advance, proposed dividend, provision for taxation,

unclaimed dividends and short term loan and advances repayable within one year.

Current Assets

Current Ratio = ---------------------------------------

13
 Current Liabilities

B) Quick Ratio: Quick ratio is the ratio of quick assets to current liabilities.
 Quick assets are the assets which can be converted into cash very quickly without

much loss. All current assets except stock and prepaid expenses are quick assets.
 All current liabilities are liabilities which are to be repaid within one year.

Quick Assets

Quick Ratio =----------------------------------------

Quick Liabilities

2. LEVERAGED or CAPITAL STRUCTURE RATIO or LONG-TERM

SOLVENCY RATIOS:

Long-term solvency ratios convey a firm’s ability to meet the interest costs and

repayments schedules of its long-term obligations e.g. debt equity and interest

coverage ratio. Leverage ratios show the proportions of debt and equity in

financing of the firm. These ratios measure the contribution of financing as

compared to financing by outsiders.

A) Debt equity ratio: It reflects the relative claims of creditors and shareholders

against the assets of the business.

 Debt usually refers to long-term liabilities.
 Equity includes equity and preference share capital and reserves.
Long-term liabilities
Debt-Equity Ratio = ------------------------------

Shareholders fund

B) Proprietary ratio: It expresses the relationship between net worth and total

assets.
 Net worth = Equity Share Capital + Preference Share Capital + reserves and

surplus fictitious assets.

14
 Total Assets = Fixed assets + Current assets (excluding Fictitious Assets)

Net Worth

Proprietary Ratio = ---------------------

Total Assets

C) Fixed assets ratio: This ratio indicates the mode of financing fixed assets. This is

the ratio of fixed assets to capital employed.

 Capital employed = Equity share capital + Preference share capital + Reserves and

surplus + Long-term liabilities – Fictitious assets

Fixed Assets

Fixed Assets Ratio = ---------------------------

Capital Employed

D) Interest coverage ratio or debt Service ratio: This ratio indicates whether a

business is earning sufficient profits to pay the interest charges.

It is calculated as follows:
PBIT
Debt Service Ratio = -------------------------------
Fixed Interest charges
 PBIT = Profit before Interest and Taxes.

3. ACTIVITY RATIOS or TURNOVER RATIOS:

An activity ratio measures the efficiency or effectiveness with which a firm

manages its resources or assets. They calculated the speed with which various

assets, in which funds are blocked up, get converted into sales. The significant

activity or turnover ratios are:

A) Inventory Turnover ratio: Stock turnover ratio indicates the number of times the

stock has turned over into sales in a year. It is calculated as:

Cost of goods or sales
Inventory Turnover Ratio = --------------------------------

15
 Average Stock
 Cost of goods sold = sales – gross profit
 Average stock = (Opening Stock + Closing Stock)/2
B) Debtors Turnover ratio: It expresses the relationship between debtors and sales.
It is calculated as:
Net credit sales
Debtors Turnover ratio = -----------------------------
Average Debtors

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C) Creditors Turnover ratio: It expresses the relationship between creditors and

purchases. It is calculated as:

Net credit purchases
Creditors Turnover ratio = -----------------------------------
Average Creditors

D) Working capital turnover ratio: This ratio is used to know the efficient

utilization of fund. It is calculated as:

Cost of goods sold

Working capital turnover ratio = -------------------------------

Working Capital

4. PROFITABILITY RATIOS:
A profitability ratio measures the profitability of a concern. Generally they are

calculated either in relation to sales or in relation to investment.

A) General Profitability Ratios:
a. Gross Profit Ratio: It reveals of trading operations of the business. It is

calculated as:
Gross Profit
Gross Profit Ratio = ---------------------
Net Sales
 Gross Profit = Net sales – cost of Goods sold
 Net sales = Total sales – Sales returns
 Cost of goods sold = opening stock + purchases + manufacturing expenses –

closing stock.

b. Net Profit Ratio: It expresses the relationship between expenses incurred for

running the resultant net sales. It is calculated as:

Operation Cost

Operating Ratio = -------------------------------

Net sales

17
 Operating cost = cost of goods sold + office & administrative expenses + selling

expenses + distribution expenses.

B) Overall Profitability Ratios:
a. Return on Assets ratio: It is calculated as:

PAT
Return on Assets ratio = -----------------------------
Total Assets
 Total assets do not include fictitious assets.
b. Return on Capital Employed: It is calculated as:

PBIT
Return on Capital Employed = ---------------------------
Capital Employed
 PBIT = profit before interest and tax.
 Capital Employed = Share Capital + Reserves & surplus + Long term loan –

Fictitious Assets
c. Return on net worth: It is calculated as:

PAT
Return on net worth = --------------------------------
Net worth
 Net worth = Share Capital + Reserves and Surplus

18
COMPANY
PROFILE

19
 COMPANY PROFILE

ICICI Bank Limited

ICICI Bank Headquarter in Bandra Kurla Complex, Mumbai

Type Private
Traded as BSE: 532174

NSE: ICICIBANK

NYSE: IBN

BSE SENSEX Constituent

CNX Nifty Constituent

Industry Banking, Financial services
Founded 05 January 1994; 25 years ago
Headquarters ICICI Bank Towers, Bandra Kurla

complex, Mumbai, India

Area served Worldwide
Key people Girish Chandra Chaturvedi

(Chairman)

Sandeep Bakhshi

(MD & CEO)

Products Retail banking, corporat

banking, investment banking, mortgage

loans, private banking, wealth

management, credit cards, finance and

20
 insurance
Revenue ₹72,385.52 crore (US$10 billion) (2019)
Operating income ₹24,741.53 crore(US$3.4 billion) (2019)
Net income ₹6,777.42 crore(US$940 million) (2019)
Total assets ₹879,189.16 crore(US$120 billion)

(2019)
Number of employees 82,724(2019)
Website www.icicibank.com

ICICI Bank Limited (Industrial Credit and Investment Corporation of India) is

an Indian multinational banking and financial services company headquartered

in Mumbai, Maharashtra with its registered office in Vadodara, Gujarat. As of 2019,

ICICI Bank is the second largest bank in India in terms of assets and market

capitalisation. It offers a wide range of banking products and financial services for

corporate and retail customers through a variety of delivery channels and specialised

subsidiaries in the areas of investment banking, life, non-life insurance, ventur

capital and asset management. The bank currently has a network of 4867 branches

and 14367 ATMs across India and has a presence in 17 countries including India.

ICICI Bank is one of the Big Four banks of India. The bank has subsidiaries in the

United Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong

Kong, Sri Lanka, Qatar, Oman, Dubai International Finance Centre, China and South

Africa; and representative offices in United Arab Emirates, Bangladesh, Malaysia and

Indonesia. The company's UK subsidiary has also established branches in Belgium

and Germany.

Marketing Strategy of ICICI Bank

ICICI Bank (Industrial Credit and Investment Corporation of India), third largest bank

in India in terms of market capitalization is changing the face of banking & financial

services in India. With 70,000+ employees ICICI is competing with some of the

21
biggest names in the Indian market in banking & financial services industry namely

State bank India, HDFC, Punjab national bank and many others.

Its innovative product portfolio is enabling the company in shaping the traditional

banking and making it technically and digitally advanced from the peer groups.

Segmentation, targeting, positioning in the Marketing strategy of ICICI Bank –

It uses demographic & psychographic segmentation strategies to segment the market

and caters the changing needs of the customers. Income, age, social class, occupation

are some of the segment variables ICICI uses to segment the market and satisfy their

growing needs & wants accordingly.

Once the market is segmented in similar characteristics than for any sets of offerings

Differentiated or undifferentiated targeting strategy are used. ICICI Bank uses

differentiated targeting strategies for a majority of its services.

Emotional and rational appeal through its advertisements is most effective strategies

for branding the products. ICICI uses value-based positioning strategies for its

offerings.

22
Mission – “We will leverage our people, technology, speed and financial capital

to:

Vision- “To be leading provider of financial services in India and a major global

bank”.

Tagline –“Khayal Aapka”.

Competitive advantage in the Marketing strategy of ICICI Bank –

Employees age group plays an important role in the growth of a company, ICICI has

70000+ aggressive employees who work together for achieving high-end customer

serviceability requirement.

With over 52 million customers and around 50% of its transactions are mobile &

internet based, ICICI is driving the digital innovation in the banking industry.

The digitally inclined bank has helped the customers when it comes to convenience &

ease of doing banking.

BCG Matrix in the Marketing strategy of ICICI Bank –

It has various subsidiaries who are working towards of common goal of wealth

generation.

ICICI Bank, ICICI Prudential Asset Management Company Limited, ICICI Prudential

Life Insurance Company Limited, ICICI Lombard General Insurance Company

Limited and ICICI Securities Limited are started since most of the business of ICICI

come from these and they are one of the best companies in their respective segments.

Other subsidiaries of ICICI are question marks since these companies are facing stiff

competition.

Distribution strategy in the Marketing strategy of ICICI Bank –

ICICI Bank has 4100 branches in total which are delivering banking and financial

services end to end to the customers.

23
Subsidiaries handling different financial verticals help the customers in getting one

stop solution to all their banking & financial needs. Aggressive promotion of its

digital platform through a mobile app (imobile) and the internet has helped the

company in decreasing the cost transactions and at the same time, it helped the bank

in making it convenient for customers.

Brand equity in the Marketing strategy of ICICI Bank –

ICICI has worked aggressively in creating a positive brand image in the market.

ICICI has bagged various awards at different forums through its innovative services

which had given it first mover advantage. Whether it comes to risk management

initiatives, social media & mobile banking, or best technology Bank of India, ICICI

has won awards in every field of tech-banking.

Competitive analysis in the Marketing strategy of ICICI Bank –

Banking & financial institution are facing stiff competition from fin-tech firms &

NBFC’s. The new age financial start-ups are implementing hi-tech strategies to

capitalise the changing needs of the consumers.

White-ATMs, M-Wallet, IMPS, Bitcoins are some of the innovative steps that are

changing economic scenario of the nation. ICICI is revolutionising the banking

industry and aggressively leading the new age hi-tech strategies in some or other way.

24
Market analysis in the Marketing strategy of ICICI Bank –

Banking & financial market in India is overcrowded with various companies eating

each other share which is affecting the survival of the Indian financial companies.

New age start-ups & fin-tech are giving head-on competition to some of the well-

established NBFC’s & Banks. The only way to survive is to grow by further

penetrating the market or use innovative strategies to increase the share of wallet.

Customer analysis in the Marketing strategy of ICICI Bank –

Customers of ICICI Bank are majorly working professionals who have an inclination

towards technology and seek better & fast banking services. The majority of ICICI

Bank’s customers are of middle & upper middle socio-economic status.

Marketing mix of ICICI bank

ICICI Bank is an Indian, Public ltd Company dealing with finance

and banking services. In India, this multinational bank boasts of being the second

largest in relation to market capitalization and its assets. This banking institution was

founded in the year 1994. The bank’s present chairperson is Mr. K.V.Kamath and Ms.

Chanda Kochhar is the CEO and MD. ICICI Bank is determined to improve the

understanding between the employees and the customers for a long-lasting

relationship.

The bank’s objectives includes creation and expansion of private concerns with

modern facilities. It has also taken initiative to ‘Go Green’ in order to create

awareness about environment amongst the people. ICICI Bank has created a platform

that single-handedly gives an option of i-mobile banking, internet banking and IVR

banking under one roof to all its customers.

25
ICICI Bank has many competitors in the banking arena that motivates them in giving

their best possible services. Some of their chief business rivals are as follows

 State Bank of India

 Bank of Baroda

 Axis Bank

 Bank of Punjab

 HDFC

 Central Bank of India

Product in the marketing mix of ICICI bank

ICICI Bank provides a variety of banking products for all its customers. The

major product of ICICI bank is its excellent customer service. The bank is known for

its 12 hours operation and for its out of the box customer service initiatives. It has

equal focus on retail customers as well as customers belonging to the corporate world.

Their banking products include:

 Consumer banking – It includes a number of deposits like Saving account,

Recurring account, Fixed deposit account, special accounts for senior citizens

and also teenagers.

 Cards – These cards include Credit card, Travel card and Debit card.

 Investment banking – Various options are provided to the customers like Tax

Saving Bonds, Mutual Funds, Foreign Exchange Services and Pure Gold

Investments.

 Loans – This include Personal Loans, Medical Equipment loans, Farm

Equipment Loans, Vehicle Loans and Loans against Securities.

26
  Finance – Channel finance is one of the strong products which ICICI bank has

in its kitty. Plus there are numerous forms of Finance provided by the bank.

 Corporate banking

 Insurance – ICICI bank is known for its large portfolio of Insurance options.

 Wealth management

 Private banking

 Mortgage loans – Most banks make an amazing amount of revenue from

offering Loans. ICICI has many fail safes in place to ensure that it gives loans

to the better customers only.

In the month of September 2013, ICICI Bank introduced an extraordinary app

on Facebook. This exclusive app named ‘Pockets by ICICI Bank’ assisted its

customers in carrying out a variety of financial transactions through Facebook. Access

to this app was possible by logging in the Facebook account of the customer. After

reaching the desired page, the individual has to complete its online registration with

the help of Debit Card number and the Pin Number.

This app has proved to be a blessing in disguise for customers as it is helpful and

saves ample time. Payments, recharging mobile’s prepaid account, booking tickets at

cinema halls, accessing statements of demat accounts and savings account, opening a

recurring account and upgrading the debit card are some of the possibilities through

this app. This app also allows a group to split and share expenses on Facebook.

Transferring of funds to friends without any bank details is possible over here.

ICICI Bank has added several new products to its portfolio like the ‘My Savings

Reward’ and ‘I Wish’ deposit program. This shows that ICICI bank understand that

for a bank, convenience is one of the major products which they can offer to their

27
customers. However, convenience comes at a security risk and therefore, ICICI

ensures that it has security fail safes in place to offer these services to customers.

Place in the marketing mix of ICICI bank

ICICI Bank’s operation has spread all over the globe and it has subsidiaries and

branches in 19 countries like Russia, United Kingdom, Canada, Singapore, US, Hong

Kong and Qatar.

In India, ICICI Bank has a huge set-up of 11,162 ATM’s and 3,800 branches. Suitable

places to set up ATM and Branches are shortlisted and then finalized so that services

can be provided to maximum number of people. While setting up such places the

safety and security of both the bank personnel’s and the users is kept in mind.

This places act as a distribution channel for the banking facilities where services are

provided anytime 24*7.The concept of Internet banking and using of technology for

any kind of services is encouraged. All its branches are equipped with modern

facilities. The bank has opened various information centers where all the related

queries can be answered.

ICICI Bank has started the concept of DSA &DST. The direct selling agents and team

of ICICI contacts the customer at his place rather than asking him to come to the

bank. This has helped them in garnering more customers.

Price in the Marketing mix of ICICI bank

ICICI Bank offers an assortment of financial services to its esteemed customers. It has

a very clear-cut pricing policy. It deals in a competitive market and so it has a policy

that involves improvisation at each level. The bank’s value added strategies are made

keeping in mind and analyzing the customer’s mindset and economic changes

happening in the market. However, when you compare it with PSU’s or even second

28
tier banks like Kotak mahindra, then ICICI can clearly be seen as a Premium priced

bank.

ICICI Bank is targeting a great part of the market share because its policy comprises

of revenue through volume. It has also started an aggressive pricing policy that

involves acquisition through low-cost funds. The bank’s main aim is to eliminate

competition in the banking field.The bank offers loans and schemes to attract its

customer. The rates are evaluated at regular periods and changed to suit the needs and

demands of both the bank and the customer.

Under its Evaluating Policy, in 2012 ICICI Bank has introduced a new program ‘My

savings Reward’. In this program, customers are allotted points as rewards for all the

transactions, which are completed through the savings account of the bank. Points are

given automatically for multiple transactions like Internet banking, shopping that is

through online, payment of bills, automatic debiting of saving account for any

monthly installments etc.

Promotions in the Marketing mix of ICICI bank

The promotion strategy of ICICI Bank comprises of direct and indirect

communication to the customers. Besides emphasizing on the modernization of its

banking facilities stress is also laid on the benefits one gets on using the banks

services. The benefit of each product is highlighted so that the clients become

impressed and they are forced to grasp the services of this bank.

Under the promotional strategy, ads have been placed in the print media and famous

personalities have been roped in for visual media. It has been a huge boost forICICI

Bank to hire Amitabh Bacchan, the famous actor, in the advertisements. All the ads

related to the bank denote‘trust’ and this has helped them immensely as trust is a rare

commodity in today’s world.

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Promotions are also done through films like Baghban. Technology has been use to its

maximum potential in tracking the customer’s wishes and demands.ICICI

and Amwayhave formed an alliance for a credit card that can be used

at international level.The bank has also patched with Indian Railways and many

services are provided for the benefit of the customer.

ICICI Bank’s tag line is very appropriate ‘Hum Hain Na’ because it promotes

credibility, trust and financial solutions to every customer. It has been successful in its

endeavour to project a sophisticated image with modern concept.

30
Swot Analysis of ICICI bank

Strengths in the SWOT analysis of ICICI Bank

 ICICI is the second largest bank in terms of total assets and market share

 Total assets of ICICI is Rs. 4062.34 Billion and recorded a maximum profit

after tax of Rs. 51.51 billion and located in 19 countries

 One of the major strength of ICICI bank according to financial analysts is its

strong and transparent balance sheet

 ICICI bank has first mover advantage in many of the banking and financial

services. ICICI bank is the first bank in India to introduce complete mobile

banking solutions and jewelry card

 The bank has PAN India presence of around 2,567 branches and 8003 ATM’s

 ICICI bank is the first bank in India to attach life style benefits to banking

services for exclusive purchases and tie-ups with best brands in the industry

such as Nakshatra, Asmi, D’damas etc

 ICICI bank has the longest working hours and additional services offering at

ATM’s which attracts customers

 Marketing and advertising strategies of ICICI have good reach compared to

other banks in India

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Weaknesses in the SWOT analysis of ICICI Bank

 Customer support of ICICI section is not performing well in terms of resolving

complaints

 There are lot of consumer complaints filed against ICICI

 The ICICI bank has the most stringent policies in terms of recovering the

debts and loans, and credit payments. They employ third party agency to handle

recovery management

 There are also complaints of customer assault and abuse while recovering and

the credit payment reminders are sent even before the deadlines which annoys

the customers

 The bank service charges are comparatively higher

 The employees of ICICI are bank in maximum stress because of the

aggressive policies of the management to win ahead in the race. This may result

in less productivity in future years

Opportunities in the SWOT analysis of ICICI Bank

 Banking sector is expected to grow at a rate of 17% in the next three years

 The concept of saving in banks and investing in financial products is

increasing in rural areas as more than 62% percentage of India’s population is

still in rural areas.

 As per 2010 data in TOI, the total number b-schools in India are more than

1500. This can ensure regular supply of trained human power in financial

products and banking services

 Within next four years ICICI bank is planning to open 1500 new branches

 Small and non performing banks can be acquired by ICICI because of its

financial strength

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  ICICI bank is expected to have 20% credit growth in the coming years.

 ICICI bank has the minimum amount of nonperforming assets

Threats in the SWOT analysis of ICICI Bank

 RBI allowed foreign banks to invest up to 74% in Indian banking

 Government sector banks are in urge of modernizing the capacities to ensure

the customers switching to new age banks are minimized

 HDFC is the major competitor for ICICI, and other upcoming banks

like AXIS, HSBC impose a major threat

 In rural areas the micro financing groups hold a major share

 Though customer acquisition is high on one side, the unsatisfied customers are

increasing and make them to switch to other banks

33
ICICI Bank (Industrial Credit and Investment Corporation of India) is an Indian

multinational banking and financial services company headquartered in Mumbai,

Maharashtra, India, with its registered office in Vadodara. In 2014, it was the second

largest bank in India in terms of assets and third in term of market capitalisation. It

offers a wide range of banking products and financial services for corporate and retail

customers through a variety of delivery channels and specialised subsidiaries in the

areas of investment banking, life, non-life insurance, venture capital and asset

management. The bank has a network of 4,450 branches and 14,404 ATMs in India,

and has a presence in 19 countries including India.

The bank has subsidiaries in the United Kingdom and Canada; branches in United

States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai International

Finance Centre, China and South Africa; and representative offices in United Arab

Emirates, Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has

also established branches in Belgium and Germany.

'Industrial Credit and Investment Corporation of India (ICICI), an Indian financial

institution, as a wholly owned subsidiary in 1994. The parent company was formed in

1955 as a joint-venture of the World Bank, India's public-sector banks and public-

sector insurance companies to provide project financing to Indian industry. The bank

was founded as the Industrial Credit and Investment Corporation of India Bank,

before it changed its name to the abbreviated ICICI Bank. The parent company was

later merged with the bank.

ICICI Bank launched internet banking operations in 1998.

34
ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public

offering of shares in India in 1998, followed by an equity offering in the form of

American Depositary Receipts on the NYSE in 2000. ICICI Bank acquired the Bank

of Madura Limited in an all-stock deal in 2001 and sold additional stakes to

institutional investors during 2001-02.

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.

In 2000, ICICI Bank became the first Indian bank to list on the New York Stock

Exchange with its five million American depository shares issue generating a demand

book 13 times the offer size.

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.

In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and

branches in some locations due to rumours of adverse financial position of ICICI

Bank. The Reserve Bank of India issued a clarification on the financial strength of

ICICI Bank to dispel the rumours.

35
Acquisitions

 1996: SCICI Ltd. A diversified financial institution with headquarters in Mumbai

 1997: ITC Classic Finance. incorporated in 1986, ITC Classic was a non-bank

financial firm that engaged in hire, purchase, and leasing operations. At the time of

being acquired, ITC Classic had eight offices, 26 outlets, and 700 brokers.

 1998: Anagram(ENAGRAM) Finance. Anagram had built up a network of some

50 branches in Gujarat, Rajasthan, and Maharashtra that were primarily engaged in

retail financing of cars and trucks. It also had some 250,000 depositors.

 2001: Bank of Madurai

 2002: The Darjeeling and Shimla branches of Grindlays Bank

 2005: Investitsionno-Kreditny Bank (IKB), a Russian bank

 2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in

1916, and 30% owned by the Bahte family. Its headquarters were in Sangli in

Maharashtra, and it had 198 branches. It had 158 in Maharashtra and 31 in Karnataka,

and others in Gujarat, Andhra Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were

relatively evenly split between metropolitan areas and rural or semi-urban areas.

 2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for

30 billion (US$450 million). RBI was critical of BOR's promoters not reducing their

holdings in the company. BOR has since been merged with ICICI Bank.

Role in Indian financial infrastructure

The bank has contributed to the set-up of a number of Indian institutions to establish

financial infrastructure in the country over the years:

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 National Stock Exchange - The National Stock Exchange was promoted by

India's leading financial institutions (including ICICI Ltd.) in 1992 on behalf

of the Government of India with the objective of establishing a nationwide

trading facility for equities, debt instruments and hybrids, by ensuring equal

access to investors all over the country through an appropriate communication

network.

 Credit Rating Information Services of India Limited (CRISIL) - In 1987,

ICICI Ltd along with UTI set up CRISIL as India's first professional credit

rating agency. CRISIL offers a comprehensive range of integrated products

and service offerings which include credit ratings, capital market information,

industry analysis and detailed reports.

 National Commodities and Derivatives Exchange Limited - NCDEX is an

online multi-commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC,

NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs, Indian Farmers

Fertiliser Cooperative Limited (IFFCO) and Punjab National Bank.

 Financial Innovation Network and Operations Pvt Ltd. - ICICI Bank has

facilitated setting up of "FINO Cross Link to Case Link Study" in 2006, as a

company that would provide technology solutions and services to reach the

underserved and underbanked population of the country. Using technologies

like smart cards, biometrics and a basket of support services, FINO enables

financial institutions to conceptualise, develop and operationalise projects to

support sector initiatives in microfinance and livelihoods.

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 Entrepreneurship Development Institute of India - Entrepreneurship

Development Institute of India (EDII), an autonomous body and not-for-profit

society, was set up in 1983, by the erstwhile apex financial institutions like

IDBI, ICICI, IFCI and SBI with the support of the Government of Gujarat as a

national resource organisation committed to entrepreneurship development,

education, training and research.

 North Eastern Development Finance Corporation - North Eastern

Development Finance Corporation (NEDFI) was promoted by national level

financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the

development of industries, infrastructure, animal husbandry, agri-horticulture

plantation, medicinal plants, sericulture, aquaculture, poultry and dairy in the

North Eastern states of India. NEDFI is the premier financial and development

institution for the North East region.

 Asset Reconstruction Company India Limited - Following the enactment of

the Securitisation Act in 2002, ICICI Bank, together with other institutions, set

up Asset Reconstruction Company India Limited (ARCIL) in 2003, to create a

facilitative environment for the resolution of distressed debt in India. ARCIL

was established to acquire non-performing assets (NPAs) from financial

institutions and banks with a view to enhance the management of these assets

and help in the maximisation of recovery. This would relieve institutions and

banks from the burden of pursuing NPAs, and allow them to focus on core

banking activities.

 Credit Information Bureau of India Limited - ICICI Bank has also helped in

setting up Credit Information Bureau of India Limited (CIBIL), India's first

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 national credit bureau in 2000. CIBIL provides a repository of information

(which contains the credit history of commercial and consumer borrowers) to

its members in the form of credit information reports. The members of CIBIL

include banks, financial institutions, state financial corporations, non-banking

financial companies, housing finance companies and credit card companies.

 Institutional Investor Advisory Services India Limited (IiAS) – ICICI Bank

has indirectly invested in Institutional Investor Advisory Services, through

ICICI Prudential Life Insurance Company, in IiAS. IiAS is a voting advisory

firm aka proxy firm, dedicated to providing participants in the Indian market

with data, research and commentary. It provides recommendations on

resolutions placed before shareholders of over 300 companies.

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 PRODUCTS AND SERVICES

 PERSONAL BANKING

Loan Product Deposit Product Investment &

Insurance
 Auto loan  Savings A/C  Mutual Funds
 Loan against  Current A/C  Bonds
security  Fixed Deposits  Knowledge Centre
 Loan against  Demat A/C  Insurance
property  Safe Deposit  General And
 Personal loan Lockers Health Insurance
 Credit card  Equity And
 2- wheeler loan Derivatives
 Commercial  Mudra Gold Bar
vehicles finance
 Home loans
 Retail business
banking
 Tractor loan
 Working capital
finance
 Construction
 Equipment finance
 Health care finance
 Education loan
 Gold loan

40
Cards Payment Services Access To Bank
 Credit Card  Net Safe  Net Banking
 Debit Card  Merchant  One View
 Prepaid Card  Prepaid Refill  InstaAlert Mobile
 Bill Pay Banking
--------------------------------  Visa Bill Pay  ATM
Forex services  InstaPay  Phone Banking
--------------------------------  Direct Pay  Email Statements
 Product And  VisaMoney  Branch Network
Services Transfers
 Trade Services  E-Monies
 Forex Service Electronic Funds
Branch Locater Transfer
 RBI Guidelines  Online Payment Of
Direct Tax

41
  WHOLESALE BANKING

Corporate Small and Medium Financial Institutions

Enterprises and
Trusts
BANKS
 Funded Services  Funded Services  Clearing Sub-
 Non Funded  Non Funded Membership
Services Services  RTGS Sub-
 Value Added  Specialized Services Membership
Services  Value Added  Fund Transfer
 Internet Banking Services  ATM Tie- Ups
 Internet Banking  Corporate Salary
A/C
 Tax Collection

Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

42
  NRI SERVICES

Accounts & Deposits Remittances

 Rupee Saving A/C  North America

 Rupee Current A/C  Uk
 Rupee Fixed Deposits  Europe
 Foreign Currency Deposits  South East Asia
 Accounts For Returning Indians  Middle East
 Africa
 Others
Quick Remit
India Link
Check Lock Box
Telegraphic/ Wire Transfer
Fund Transfer Cheques/Dds/Tcs

Investment & Insurances Loans

 Mutual Funds  Home Loans

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

43
Payment Services Access To Bank

 Net Safe  Net Banking

 Bill Pay  One View
 InstaPay  InstaAlert
 DirectPay  ATM
 VisaMoney  Phone Banking
 Online Donation  Email Statements
 Branch Networks

44
 PRODUCTS
ICICI Bank offers wide variety of Deposit Products to suit your requirements.
Coupled with convenience of networked branches/ ATMs and facility of E-channels
like Internet and Mobile Banking, ICICI Bank brings banking at your doorstep. Select
any of its deposit products and provide your details online and their representative
will contact you for Account Opening.

SAVING ACCOUNTS

ICICI Bank offers customers a power packed Savings Account

with a host of convenient features and banking channels to
transact through. So now customers can bank at their
convenience, without the stress of waiting in queues.
Special Savings Account:

The Special Savings Account has been designed keeping in mind the specific needs of
organizations such as Trusts, Associations, Societies, Councils, Clubs etc. It provides
organizations solutions with added value and is ideal for tax exempted entities.

“LIFE 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 requirements in
mind.
 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,
flexibility 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.

45
 Anywhere banking access to various services, ICICI Bank has to offer – anytime,
anywhere and from any place, including branches, ATMs and phone banking.
 Nomination facility available.
 Quarterly average balance(QAB) requirement of Rs.5000.
 Quarterly physical statements are delivered to your doorstep to absolutely free of
cost.
 Passbook on request.

Young Stars Account:

Young Stars is a banking service for children, aged

1day -18 years, brought to you by ICICI Bank to

help the parents meet the present and future

aspirations that they hold for their child. It offers various savings and investment

options to the parent along with teaching the child to manage his/her personal finance

in a more responsible and independent manner. Young Stars will guide your child

through the world of banking -through checking the account balance, fun zones and

special pages on the internet. It makes banking a pleasure and of course teaches your

child to manage their personal finances. With the pocket money that you transfer to

your child's account, you can even shop with him / her at Young Stars very own

shopping page. You can even open a recurring deposit in your child's name.

Once you are done with your 'banking', you can access your child's account with all

the fun links to special zones designed to suit your child's area of interests and also

impart knowledge on the current events of the world.

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Advantage woman savings 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 customers. Enjoy your present and plan
for the future with ICICI Bank’s Advantage Woman Savings Account. Advantage
Woman offers a specially designed woman's debit card which helps you shop and save
simultaneously, manages your household expenditures and comes with a bag full of
offers attached to it.

 Special International Woman’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) requirement of Rs. 10,000.

Current Accounts:

Every business requires efficient banking facilities to support its business activities.
ICICI Bank offers premium quality service, unfolding a wide array of class products.
With technology leadership and service the bank is able to meet some of the most
challenging financial needs of clients. A Current Account is one that is required by
Businessman, Joint stock companies, Institutions, Public authorities, public
corporations etc. Any business that has numerous banking transactions need a current
account as it

 Allows running account supporting unlimited withdrawals and deposits.

47
 Is meant for convenience and not to save money.

48
 Roaming Current Account

Only Roaming Current Account from ICICI Bank travels the distance with
customers business. With advanced technological features such as MCC and LCC,
banking needs are well taken care of, customers can access their accounts at over
500 networked branches across the country.
So while customers take care of their business, ICICI Bank’s Roaming Current
Account simplifies banking for them.

Salary Accounts

Salary Account is a feature rich corporate payroll account with benefits for both
corporate and its employees.

 The process of drawing cheques for salaries is replaced by sending a

single ASCII file to the bank and the amount is directly credited into the
employee’s 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

49
details of the designated employees in a soft and hard copy format and we will credit
the respective employees' accounts as per your statement of advice. ICICI Bank
Salary Accounts benefits you in more than one ways:-

• Reduces paperwork.

• Saves remittance costs.

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

Fixed deposits:

Fixed deposits are options which help you grow your

money thus creating wealth in a safer and secure way.
ICICI provides its customers with various kinds of
Fixed deposit facilities that are flexible and cater to
customers who have different needs and wants in
their fixed deposits.
ICICI provides a Fixed Deposit that allows customers to deposit their money for just
as long as you wish.

 Wide range of tenures – 15 days to 10 years.

 Choice of investment plan – traditional and cumulative deposits.
 Partial withdrawal allowed.
 Loan facility available – you can avail loan up to 90% of principal and accrued
interest.
 Auto renewal facility – you can choose this option so that the deposit can be
renewed on maturity.
 Interest compounded quarterly.
 Additional interest rate of 0.5% for senior citizens.

50
Recurring Deposits:

ICICI Bank Recurring Deposits are an ideal way to

invest small amounts of money every month and end
up with a large kitty on maturity.High recurring
billing and recurring payments can be a drain on
your finances and hence large investments may seem
a plan away.

Recurring deposits aims to encourage savings without putting any stress on customers
finances by making them to put a lump sum amount in fixed deposit in one go.The
recurring deposit also attracts high rate of return that are identical to the fixed deposit
rates and most importantly no TDS is applicable in it .the minimum balance of deposit
is of Rs.500 and thereafter in multiples of Rs.100 the minimum period is 6 months
and thereafter in multiples of 3 months, nomination facility is also available.

Security Deposits:

A few Corporate 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.

51
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 maximize your advantage. ICICI Bank’s Tax Saver

FD is the perfect solution for your investment needs.

EEFC Account
Indian exports have surged over the last decade owing to an unprecedented boom in
sectors like software, biotechnology, gems, jewellery, textiles etc. As a result of this,
the volume of inward remittances has also increased significantly. To shield the firms
engaged in regular export and import from the exchange rate fluctuations RBI has
allowed parking of foreign currency by exporters in an account designated as
Exchange Earners Foreign Currency Account (EEFC). EEFC accounts are Current
Accounts held in foreign currency with authorized dealers of foreign exchange in the
country.

Resident Foreign Currency (Domestic) Account

Do you want to save money while buying foreign currency for travelling abroad? You
can buy traveler’s cheques, foreign currency in cash and foreign currency demand
draft for your expenses overseas. If you are a frequent traveler, you may not want to
go through the hassles of buying foreign currency every time you travel abroad.

The Reserve Bank of India has now made it easier for you to access foreign currency
by permitting a foreign currency account (domestic) for resident Indians. In line with
RBI guidelines, ICICI Bank has come up with a scheme that helps you get rid of all
your forex worries. You can park your foreign currency in ICICI Bank under RFC (D)
account. Non-interest bearing Resident Foreign Currency (D) (RFC (D)) with ICICI
Bank can be maintained in four major currencies (USD, EURO, GBP and Japanese
Yen)

PRIVILEGE BANKING:

Privilege banking service ensures preferential treatment to its customers.

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Silver privilege A/c

 Waiver of multi-city cheque book usage up to Rs. 1,00,000 per month.

 Waiver of DD/PO charges for upto Rs.50,000 per day.

 Preferential rates of gold coins,deposits lockesr &foreign exchange.

 Quarterly average balance requirement of Rs.25000.

Gold privilege A/c

 Priority processing at all ICICI Bank branches and customer care.

 Free usage of payable -at-par cheque book.

 Free international gold debit card with higher daily withdrawal and spend
limit.

 Waiver of DD/PO charges for up to Rs.100,000 per day.

 Free anywhere banking facility.

 Preferential rates for gold coins, deposit lockers and foreign exchange.

 Quarterly Average Balance(QAB) requirement of Rs.50000.

Titanium privilege A/c

 Branch relationship manager supported with phone banking

relationship manager.

 Priority processing at ICICI Bank brancghes and customer care.

 Free international titanium debit card with higher daily withdrawal and
spend limit.

53
  Free anywhere banking facility.

 Free usage of multy-city cheque book.

 Free physical monthly account statement.

 Complete waiver on DD/PO charges.

 Preferential rates for gol coins,deposit lockers and foreign exchange.

 Quarterly average balance (QAB)requirement of Rs.75000 and Total

Relationship Value(TRV)of Rs. 5,00,000.

Family banking:

Superior product benefits of privilige banking,wealth

management and global private client(GPC) available to all the members of your
family while the required minimum balance can be maintained in any of the accounts.

 Access to superior benefits for the entire family.

 Flexibility to maintain balances across account.

 Lower minimum balance requirement at individual customer level.

 Single family bank – convenience for the entire family and easier funds
management.

Outward Remittance:

Send money to your loved ones abroad

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

54
Advantage Deposit

Advantage Deposit is a combination of fixed deposit and mutual fund investment,

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

 Combination of a Fixed Deposit (with monthly interest payout) and

Systematic Investment Plan (SIP) of a Mutual Fund.

 Re-investment of monthly interest payout of Fixed Deposit into systematic

investment plan of Mutual Fund.

 Automatic debits to account through Standing Instruction / ECS debit

mandate.

New Pension System of Government of India

ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION
SYSTEM launched on May 1, 2014 by the Government of India. The scheme,
promoted by the PFRDA (Pension Fund Regulatory and Development Authority,
Government of India), is a first of its kind in India and is being launched pan-India by
22 other POP's as well.

The purpose of this pension scheme is to promote security of income to its subscribers
in their old age. The scheme will empower a subscriber to plan his own retirement and
pension. It not only will help him save for life after retirement but also is a good
investment tool as the returns are market-driven. For optimum returns, the
Government has appointed six fund managers for subscribers to choose from.

LOANS

HOME LOAN

Interest rates on home loans have come down considerably in the last few years.
Individuals who opted for housing loans in the years gone by, are still servicing them
at 17% to 21% per annum. Quite a price to pay, since one can get a loan today for
around 12% per annum. In such a case, you can opt for a balance transfer. Under this

55
 scheme, customers can replace their existing old high
interest loan by a cheaper (equal to applicable current rates)
loan. ICICI Home Finance will not only finance the balance
amount of outstanding loan but also your prepayment
charges to the old housing finance company.

The result:

 A lower EMI with the same tenure .

 A reduced tenure with the same EMI.

 A reduced tenure and EMI .

 The same EMI and tenure but an additional amount as a loan.

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.

56
  All loan repayments are done via equated monthly instalments (EMI).

CAR LOAN

The NO. 1 financier for car loans in the country. Network

of more than 1500 channel partners in over 780 locations.
Tie-ups with all leading automobile manufacturers to
ensure the best deals. Flexible schemes & quick processing. Hassle-free application
process on the click of a mouse.

OBJECTIVES OF
THE STUDY
57
 OBJECTIVES OF THE STUDY
 To know the liquidity position and solvency
 To study the profitability of ICICI Bank
 To find financial performance and efficiency use of capital employed.

58
 RESEARCH
METHODOLOGY

59
 RESEARCH METHODOLOGY

In the present descriptive

study is employed. an
attempt has been made to
measure, evaluate and
compare the financial
performance of the Bank.
the analysis partitioned
two side aspect of
stakeholders. the
shareholders wealth and
other external
stakeholders. The study is
based on
secondary data that has
been collected from
annual reports of the
bank website, magazines,
journals, documents and
other published

60
information. The study
covers the period of 5
years
from year 2010-11 to year
2014-15. Ratio Analysis was
applied to analyze and
compare the
trends in banking business
and financial performance.
1.8 STATISTICAL TOOLS
the Researcher has used
the following tools to
present and analysis data
data presentation
I. tables
II. Diagrams
data analysis
I. Microsoft excel 2007
1.9 PERIOD OF THE STUDY

61
this study of financial ratio
analysis is limited to five
years from 2010 to 2015.
the accounting
year starts from 1 April to
31 march.
1.10 SCHEME OF
CHAPTERISATION
The researcher is prepared
the following scheme of
chapterisation.
1. The first chapter deals
with introduction and
research design of the
study.
2. The second chapters
describes the Industry and
company profile
3. The third chapter deals
with literature review.

62
4. The fourth chapter is
devoted to the research
methodology.
5. The fifth chapter is data
analysis and interpretation.
6. The sixth chapter gives
findings of the study
The researcher adopted the analysis of data in a manner that to combine relevance to

purpose with economy in procedure. Research design is the based define of a

research problem. The preparation of the design of the project is standard analytical

of researcher favorite. It was used in secondary data that was published already as

annual reports of the bank in bank website, journals, magazines and newspapers

and other secondary data sources. this Secondary data may be already collected and

analyzed by someone else but gap is period of the study and variables which we want

to know. The study mainly connected annual financial reports that are last five years

2014-2018 company final accounts (balance sheet and profit and loss)

RESEARCH DESIGN

In the present descriptive study is employed. an attempt has been made to measure,

evaluate and compare the financial performance of the Bank. the analysis

partitioned two side aspect of stakeholders. the shareholders wealth and other

external stakeholders. The study is based on secondary data that has been

collected from annual reports of the bank website, magazines, journals,

documents and other published information. The study covers the period of 5 years

63
from year 2014-15 to year 2017-18. Ratio Analysis was applied to analyze and

compare the trends in banking business and financial performance.

DATA COLLECTION

Main data of this study is based to the annual financial reports ICICI Bank from in

2010 to 2015. also researcher used four main financial statements for ratio analysis

of bank such as; balance sheets, an income statement, cash flow statement;

statement of shareholder's equity although study strongly emphasis the first main

reports

DATA ANALYSIS

The study used all important tools of ratio analysis for profitability evaluation of

bank. It indicates the different steps such Selection of financial report, Identification

of balance sheet, income statement and cash flow statement, ratio analysis,

mathematical calculation, statistical analysis of bank financial report year by year

comparison and among industry First step of model, we do a selection of financial

report that means a choose of annual financial report. The annual financial report

present financial data of a company's position, operating performance, and funds flow

for an accounting period .We use the annual reporting of bank in 2014 to 2018.

Second step of model, researcher identify the balance sheet, income statement, cash

flow statement from the annual financial report. Study used some data from balance

sheets for different kind of ratio such as liquidity ratios, asset management ratios,

debt management ratios. In contrast, we was used some sources from income

statement. When analysis the ratio of profitability and debt management

ratio employment of bank income statement and balance sheet is must. however the

use of some data from the cash flow statement for ratio analysis such as market value

64
ratio is also possible . The third step of model, study identify the suitable ratio for

profitability analysis and evaluation the ratio such as current ratio, liquidity ratio,

asset management ratio, profitability ratio, debt coverage ratio, market value etc. All

types of ratio are most important for how well a bank to generate its assets, liquidity,

revenue, expense, share holder equity profit or loss are also here . The Forth step of

model, study used the Mathematical calculation of bank. some figure from the

income statement and balance sheet. Financial calculators was used to determine the

results a financial ratio calculations a graphical analysis for evaluation of bank using

Microsoft excel is employed and finally study compares the results to manipulate

objectives

SECONDARY DATA

The major source of data for this project was collected through Balance sheet and

Profit and loss of ICICI Bank account of 5 year period from 2014-2018 Descriptive

research is used in this study because it will ensure the minimization of bias and

maximization of reliability of data collected. The researcher had to use fact and

information already available through financial statements of earlier years and

analyze these to make critical evaluation of the available material. Hence by making

the type of the research conducted to be both Descriptive and Analytical in nature

RESEARCH INSTRUMENTS

Study Used Secondary Data Collected From Publishers Of The Bank Final Accounts

It Is Limited To Last Five Years 2014-2018Annual Financial Reports

HYPOTHESIS OF THE STUDY

The Bank Profitability Is Improving With Constant Growth Rate

65
STATISTICAL TOOLS

The Researcher has used the following tools to present and analysis data presentation

I. tables
II. Diagrams
Data analysis.
III. Microsoft excel 2007

PERIOD OF THE STUDY

This study of financial ratio analysis is limited to five years from 2014 to 2018.

the accounting year starts from 1 April to 31 march.

OPERATIONAL KEY TERMS DEFINITION

Ratios: are the simplest mathematical (statistical) tools that reveal significant

relationships hidden in mass of data, and allow meaningful comparisons.

Some ratios are expressed as fractions or decimals, and some as

percentages. Major types of business ratios include Efficiency, Liquidity,

Profitability, and Solvency ratios.

Analysis: Ratio Analysis is a form of Financial Statement Analysis that is used to

obtain a quick indication of a firm's financial performance in several key areas.

The ratios are categorized as Short-term Solvency Ratios, Debt Management

Ratios, Asset Management Ratios, Profitability Ratios, and Market Value Ratios

Profit: The surplus remaining after total costs are deducted from total revenue,

and the basis on which tax is computed and dividend is paid. It is the best

known measure of success in an enterprise.

66
LIMITATIONS
OF THE STUDY

67
 LIMITATIONS OF THE STUDY
Due to constraints of time and resources, the study is likely to suffer from

certain limitations. Some of these are mentioned here under so that the

findings of the study may be understood in a proper perspective. The

limitations of the study are:

The study is based on the secondary data and the limitation of using secondary

data may affect the results.

The secondary data was taken from the five years annual reports of the ICICI

Bank. It may be possible that the data shown in the annual reports may be

limited period of time which does not effectively show the actual fluctuation

of the bank profitability.

Financial analysis is mainly done to compare the growth, profitability and

financial soundness of bank by diagnosing the information contained in the

financial statements. Financial ratio analysis is done to identify the financial

strengths and weaknesses of the bank by properly establishing relationship

between the items of Balance Sheet and Profit & Loss Account for period of

five years. It helps in better understanding of bank financial position, growth

and performance by analyzing the financial statements with various tools

and evaluating the relationship between various elements of financial

statements.

68
DATA ANALYSIS
&
INTERPRETATION

69
 DATA ANALYSIS & INTERPRETATION

BALANCE SHEET OF ICICI BANK

AS ON MAR 2014,MAR 2015,MAR 2016,MAR2017,MAR2018.      (RS. 

IN CRORES)
Table No. 6. 1

2014 2015 2016 2017 2018

CAPITAL AND

LIABILITIES:
Total Share Capital 1086.75 1239.83 1249.34 1462.68 1463.29
Equity Share Capital 736.75 889.83 899.34 1112.68 1113.29
Share Application 0.02 0.00 0.00 0.00 0.00

Money
Preference Share 350.00 350.00 350.00 350.00 350.00

Capital
Reserves 11813.20 21316.16 23413.92 45357.53 48419.73
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net Worth 12899.97 22555.99 24663.26 46820.21 49883.02
Deposits 99818.78 165083.17 230510.19 244431.05 218347.82
Borrowings 33544.50 38521.91 51256.03 65648.43 67323.69
Total Debt 146263.25 226161.17 306429.48 356899.69 335554.53
Other Liabilities And 21396.17 25227.88 38228.64 42895.39 43746.43

Provisions
Total Liabilities 167659.42 251388.95 344658.12 399795.08 379300.96

ASSETS:
Cash And Balances 6344.90 8934.37 18706.88 29377.53 17536.33

With RBI
Balances With 6585.07 8105.85 18414.45 8663.60 12430.23

Company’s, Money At

Call
Advances 91405.15 146163.11 195865.60 225616.08 218310.85
Investments 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

70
Depreciation
Net Fixed Assets 4038.04 3980.72 3923.42 4108.89 3801.62
Capital Work In 96.30 147.94 189.66 0.00 0.00

Progress
Other Assets 8702.59 12509.57 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 170.35 249.55 270.37 417.64 445.17

value(Rs.)
EPS 27.22 28.55 34.59 37.37 33.78
No. of equity 736716094 889823901 899266672 1112687495 1113250642

shares

PROFIT AND LOSS ACCOUNT OF ICICI BANK FOR

THE YEAR ENDED (RS. IN CRORES)
Table no 6. 2

2014 2015 2016 2017 2018

INCOME:
Interest Earned 9409.90 13784.49 22994.29 30788.34 31092.55
Other Income 3416.14 4983.14 5929.17 8810.77 7603.72
Total Income 12826.04 18767.63 28923.46 39599.11 38696.27
EXPENDITURE

:
Interest Expended 6570.89 9597.45 16358.50 23484.24 22725.93
Operating 3299.15 4479.51 6690.56 8154.18 7045.11

Expenses
Total Expenses 9870.04 14076.96 23049.06 31638.42 29771.04
Operating Profit 2956 4690.67 5874.40 7960.69 8925.23
Other Provision 428.80 1594.07 2226.36 2904.59 3808.26

And Contigencies
Provision For Tax 522 556.53 537.82 898.37 1358.84
Net Profit 2012.20 2540.07 3110.22 4157.73 3758.13
Extraordinary 0.00 0.00 0.00 0.00 (0.58)

71
Items
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 0.00

Dividend
Equity Dividend 632.96 759.33 901.17 1227.70 1224.58
Corporate 90.10 106.50 153.10 149.67 151.21

Dividend Tax
Pershare Data
Eps(Rs.) 27.22 28.55 34.59 37.37 33.78
Equity 85.00 85.00 100.00 110.00 110.00

Dividend(%)
Book Value(Rs) 170.35 249.55 270.37 417.64 445.17
Appropriations
Transfer To 547.00 248.69 1351.12 1342.31 2015.42

Statutory Reserve
Transfer To Other 600.01 1320.34 0.00 0.01 0.01

Reserve
Proposed 723.06 865.83 1054.27 1377.37 1375.79

Dividend/Transfer

To Govt
Balance C/F To 188.22 293.44 998.27 2436.32 2809.65

Balance Sheet
Total 2058.29 2728.30 3403.66 5156.01 6193.87

72
 FINANCIAL STATEMENT ANALYSIS:
COMPARATIVE BALANCE SHEET OF ICICI BANK FROM
2014-2015 TO 2017-2018 TABLE NO 6. 3
(Rs. in crores)
PARTICULAR 2014-2015 2015-2016 2016-2017 2017-2018
S
Absolute % Absolute % of Absolute % Absolute %
change change change change change
CAPITAL AND
LIABILITIES:
Capital 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
surplus
Deposits 65264.39 65 65427.02 40 13920.86 6 (26083.23) 11
Borrowings 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 83729.55 50 93269.17 37 55136.96 16 (20494.12) 5.1

CAPITAL 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
Progress
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:

73
 COMPARATIVE INCOME STATEMENT OF ICICI BANK FROM
2013-2014 to 2017-2018

Table no 6. 4

(Rs. in crores)
PARTICULARS 2014-2015 2015-2016 2016-2017 2017-

2018
Absolute % of Absolute % of Absolute % of Absolute
change change change change change change change
INCOME:

Operating income 5941 46.3 10156 54.1 10676 37 (902.84)

EXPENDITURE:

Interest expended 3026.56 46 6761.05 70.4 7125.74 43.5 (758.31)

Operating 1180.36 36 2211.05 49.3 1463.62 22 (1109.07
expenses
Total expenses 4206.92 43 8972.1 64 8589.36 37.2 (1867.38)
Operating profit 1734.67 59 1183.73 25.2 2086.29 35.5 964.54

Provision and 1199.8 126.1 613.58 28.5 1038.78 37.5 1364.14

contigencies
Net profit for the
year 534.87 27 570.15 22.4 1047.51 34 (399.6)
Extraordinary
items 0.00 0.00 0.00 0.00 0.00 0.00 (0.58)
Profit brought
forward 135.13 254.5 105.22 56 704.83 21 1438.05

TOTAL PROFIT/ 670 32.55 675.37 25 1752.34 51.4 1037.87

(LOSS):

74
 INTERPRETATION:-

The net profit shows a fluctuating trend i.e it increased by 27% in 2014-15,22.4%

increase in 2015-16,and increased by 34% in 2016-17 and finally if falls by 10% in

2017-18.this may be due to decline in operating income and increased tax liability in

the year 2017-18.

The interest expenses from the period 2012 to 2015 showed an increasing trend but

decreased in 2017-18 due to repayment of borrowings.

INTERPRETATION OF ABOVE TABLES

 The capital of Company increased by 14% in 2014-15,0.8% in 2015-16,17% in 2016-

17,and .04 % in 2017-18.This shows that there is fluctuation in the rate of increase

in the capital. In 2014-15 and 2016-17 the rate of increase in capital is more than

that of 2015-16 and 2017-18.

 There is a huge fluctuation in the rate of increase in reserves and surplus also. This

shows that Company is effectively utilizing its reserves and surplus.

 In 2014-15 deposits increase by 65%,in 2015-16 it increased by 40%,and an increase

of 6% in 2016-17.in 2017-18 deposits fall by 11%.this shows that the Company has

repaid its deposits in this year.

 The borrowings are also showing a fluctuating rate of increase in 2017-18 the

borrowings have increased at a very low rate this shows that Company 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 2014-15, an increase of 34% in 2015-16,15%

increase in 2016-17 and finally decreased by 3.25% in 2017-18.

75
 There has been a consistent decline in the fixed assets over years in 2014-15 and

2015-16 it decreased by 1.4 % ,increased by 5% in 2016-17 and again decreasing by

7.5% in 2017-18.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 2014-15,

rate of increase rose to 80% in 2015-16 and then it increased at a much lower rate

i.e. at 10%.this shows that the Company is effectively utilizing its working capital.

there is a fall in current assets in 2017-18 by 8 %.this is mainly due to the

repayment of deposits in the years 2017-18.

76
TREND ANALYSIS
Trend Percentage of ICICI Bank From 2013-2014To 2017-2018
(base year 2013-14) Percentage (%) figures

Table no 6. 5

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18

Deposits 100 165 231 245 219
Advances 100 160 214 247 239
Net profit 100 127 155 207 187

Trend Percentage of ICICI Bank

Deposits Advances Net profit

247
245 239
231
214 219
207
187
165
160 155
127
100

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

There is a continuous increase in the deposits till the year ending 2015 followed by a

downfall in the year ending 2016 due to repayment deposits in this year.

Similarly advances also shows as increasing trend till the year ending 2015 followed

by a slight downfall in the year ending 2016.

There has been a substantial increase in net profit till the year ending 2015.In four

years it has been more than double.

77
RATIO ANALYSIS
CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

Table no 6. 6

Year Current Assets Current Liabilities Current Ratio

(Rs. In crores) (Rs. In crores)
2013-14 21632.56 21396.16 1.01
2014-15 29549.79 25227.88 1.17
2015-16 53421.59 38228.64 1.39
2016-17 58615.76 42895.38 1.36
2017-18 54130.18 43746.43 1.23

Current Ratio of ICICI Bank

Current Ratio

1.39 1.36
1.23
1.17
1.01

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

An ideal Current ratio is 2. The ratio of 2 is considered as a safe margin of solvency

due to the fact that if current assets are reduced to half (i.e.) 1 instead of 2, then also

the creditors will be able to get their payments in full. But here the current ratio is less

than 2 and more than 1 which shows that the ICICI Bank have current assets just

equal to the current liabilities which are not satisfactory as the safety margin is very

less or zero. Therefore the ICICI Bank should keep more current assets so that it can

maintain a satisfactory safety margin.

78
LIQUID RATIO:

Liquid ratio is also known as ‘Quick’ or ‘Acid Test ‘Ratio. Liquid assets refer to

assets which are quickly convertible into cash. Current Assets other stock and prepaid

expenses are considered as quick assets.

Quick Ratio = Total Quick Assets

Total Current Liabilities

Quick Assets = Total Current Assets – (Inventory + Prepaid expenses)

Table no 6. 7

2013-14 12929.97 21396.16 0.60

2014-15 17040.22 25227.88 0.67
2015-16 37121.33 38228.64 0.97
2016-17 38041.13 42895.38 0.88
2017-18 29966.56 43746.43 0.68

Liquid ratio of ICICI Bank

0.97
0.88

0.67 0.68
0.6

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:
A quick ratio of 1:1 is considered favorable because for every rupee of current
liability, there is at least one rupee of liquid assets. A higher value of ratio is
considered favorable. Here this ratio is less than 1 in 2012, 2013&2016 but in
2014&2015 it is close to 1 which is not satisfactory. This means the ICICI Bank has
not managed its funds properly in this particular period. Therefore ICICI Bank should
rationally utilize its funds to maintain an ideal liquid ratio.

79
EARNING PER SHARE:
Earning Per Equity Share = Net Profit after Tax –Preference
Dividend
No. of Equity shares

Table no 6. 8

Year Net Income Available No. Of Equity EPS

For Shareholders Shares
(Rs. In crores) (Rs. In crores)
2013-14 2012.2 73.6716 27.22
2014-15 2540.07 88.9823 28.55
2015-16 3110.22 89.9266 34.59
2016-17 4157.73 111.2687 37.37
2017-18 3758.13 111.325 33.78

EPS of ICICI Bank

EPS
37.37
34.59 33.78

27.22 28.55

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

Earnings per Share are the most commonly used data which reflects the performance

and prospects of the ICICI Bank. It affects the market price of shares.

Here the Earning Per Share is shows a persistent increase till the year 2015 after that

in the year 2016 Earnings Per share is followed by a downfall due to decline in

profits.

80
DIVIDEND PER SHARE:

Dividend per Share = Dividend Paid To Equity Shareholders
                                                     No. Of Equity Shares

Table no 6. 9

Year Dividend Paid No. Of Equity DPS

Shares
(Rs. In crores) (Rs. In crores)
2013-14 632.96 73.6716 8.59
2014-15 759.33 88.9823 8.53
2015-16 901.17 89.9266 10.02
2016-17 1227.7 111.2687 11.03
2017-18 1224.58 111.325 11

DPS of ICICI Bank

DPS
11.03 11
10.02
8.59 8.53

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

Here the Dividend per Share is increasing year after year except a little decline in

2016.otherwise the dividend per share ratio of the ICICI Bank is quite satisfactory

which shows the ICICI Bank has a good dividend paying capacity.

81
NET PROFIT RATIO:

Net Profit Ratio = Net Profit X 100

Net Sales

Table no6. 10

Year Net Profit Sales Net Profit Ratio

(Rs. In crores) (Rs. In crores) (in %)
2013-14 2012.2 9409.9 21.3
2014-15 2540.07 13784.49 18.42
2015-16 3110.22 22994.29 13.52
2016-17 4157.73 30788.34 13.5
2017-18 3758.13 31092.55 12.08

Net Profit Ratio of ICICI Bank (in %)

Net Profit Ratio (in %)

21.3
18.42

13.52 13.5
12.08

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

Although both the sales and net profit have increased during the above period but the

Net Profit Ratio of the ICICI Bank is declining continuously. This is because of the

reason that net profits have not increased in the same proportion as of the sales.

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OPERATING PROFIT RATIO:
Operating Profit Ratio = Operating Profit X100
Net Sales

Table no 6. 11
Year Operating Profit Sales Operating Profit
(Rs. In crores) (Rs. In crores) Ratio (in %)
2013-14 2956 9409.9 31.41
2014-15 4690.67 13784.49 34.02
2015-16 5874.4 22994.29 25.54
2016-17 7960.69 30788.34 25.85
2017-18 8925.23 31092.55 28.7

Operating Profit Ratio of ICICI Bank (in %)

Operating Profit Ratio (in %)

34.02
31.41
28.7
25.54 25.85

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:
In the year 2012&2013 the operating profit is 31.41% & 34.02% respectively. After
that it has been consistently declined from the year 2014 till 2015 and again gaining
momentum in 2016. This may be due to the reason that operating expenses have been
increased more as compared to sales during the above period consequently reducing
the operating profits. Therefore the ICICI Bank should check on unnecessary
operating expenses to correct this situation and to provide a sufficient return.

83
RETURN ON NET WORTH:

Return on Net Worth = Net Profit After Interest And

Tax x 100
Shareholder’s Funds

Table no 6. 12
Year Net Profit After Shareholder's Fund Return On Net
Interest And Tax Worth (in %)
(Rs. In crores) (Rs. In crores)
2013-14 2012.2 12899.97 15.54
2014-15 2540.07 22555.99 11.26
2015-16 3110.22 24663.26 12.61
2016-17 4157.73 46820.21 8.88
2017-18 3758.13 49883.02 7.53

Return On Net Worth of ICICI Bank

(in %)
Return On Net Worth (in %)
15.54
12.61
11.26
8.88
7.53

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

The net profit after interest and tax have increased slowly till the year 2015 followed
by a downfall due to high interest payments, operating expenses and taxation liability.
Consequently the net worth ratio has declined considerably and has reduced to more
than half in the year 2016 than it was in 2012.

84
RETURN ON CAPITAL EMPLOYED:

Table no 6. 13

Year Net Profit Before Capital Employed Return On Capital

Interest And Tax Employed (in %)
(Rs. In crores) (Rs. In crores)
2013-14 9098.09 146263.25 6.22
2014-15 12694.05 226161.17 5.61
2015-16 20006.54 306429.48 6.52
2016-17 28540.34 356899.69 7.99
2017-18 27842.9 335554.53 8.29

Return On Capital Employed of ICICI Bank (in %)

Return On Capital Employed (in %)
7.99 8.29

6.22 6.52
5.61

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

The above table exhibits the return on capital employed ratio of the ICICI Bank for

last five years. This ratio measures the earning of the net assets of the business. The

ratio was 6.22% in year 2012. After that it raised to the tune of 5.61%,6.52%,7.99%

and 8.29% in year 2013, 2014, 2015 and year 2016 respectively. It lead to the

conclusion ICICI Bank rising but very little proportion of return on capital employed.

85
DEBT- EQUITY RATIO:

Table no 6. 14

Year Debt Equity Debt Equity Ratio

(Rs. In crores) (Rs. In crores)
2013-14 154759.45 12899.97 11.99
2014-15 228832.96 22555.99 10.14
2015-16 319994.86 24663.26 12.97
2016-17 352974.87 46820.21 7.53
2017-18 329417.94 49883.02 6.6

Debt Equity Ratio of ICICI Bank

Debt Equity Ratio
12.97
11.99
10.14

7.53
6.6

2013-14 2014-15 2015-16 2016-17 2017-18

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 ICICI Bank is more relying on
outside funds as compared to internal sources of capital, in its capital structure. From
the long-term lenders point of view this ratio is not satisfactory.

86
PROPRIETORY RATIO:

Proprietary Ratio = Shareholder’s Fund

Total Assets

Table no 6. 15

Years Shareholder's Funds Total Assets Proprietory Ratio

(Rs. In crores) (Rs. In crores)
2013-14 12899.97 167659.4 0.07
2014-15 22555.99 251388.95 0.08
2015-16 24663.26 344658.11 0.07
2016-17 46820.21 399795.07 0.12
2017-18 49883.02 379300.96 0.13

Proprietory Ratio of ICICI Bank

Proprietory Ratio
0.13
0.12

0.08
0.07 0.07

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

Above table exhibits the proprietary ratio of the ICICI Bank for last five years . It was
7% in 2012, after that was 8% in year 2013. Similarly it was once again reduced to 7
% in the year 2014. After 2014 it registered increase and was 12% and 13% in the
year 2015 and 2016 respectively. Hence it leads to the conclusion owners have less
than 13% stake in the total assets of the ICICI Bank. It is not a good sign as far the
long term solvency is concerned.

87
FIXED ASSETS TURNOVER RATIO:
Fixed Assets Turnover Ratio = Cost of goods sold or Sales
Net Fixed Assets

Table no 6. 16

Year Fixed Assets

Turnover Ratio
2013-14 2.33
2014-15 3.46
2015-16 5.86
2016-17 7.49
2017-18 8.17

Fixed Assets Turnover Ratio of ICICI Bank

Fixed Assets Turnover Ratio
8.17
7.49

5.86

3.46
2.33

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

Here the fixed assets employed in the business shows a decreasing trend except in the
year 2015 where fixed assets have again increased. This may be due to increase in rate
of depreciation in subsequent years. Nevertheless the fixed assets turnover ratio has
been consistently increasing. It indicates that fixed assets have been effectively used
in the business without much additional investment in the period of study and also the
capital is not blocked in fixed assets.

88
CREDIT-DEPOSIT RATIO:

Credits
Credit Deposit Ratio= ×100
Deposits

Table no 6. 17
Year Advances Deposits Credit Deposit Ratio (in
(Rs. In crores) (Rs. In crores) %)
2013-14 91405.15 99818.78 91
2014-15 146163.11 165083.17 88
2015-16 195865.6 230510.19 84
2016-17 225616.08 244431.05 92
2017-18 218310.85 218347.82 99

Credit Deposit Ratio of ICICI Bank (in%)

Credit Deposit Ratio (in%)

99

91 92
88
84

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

Above table exhibits credit deposit ratio of the ICICI Bank during last 5 years in

the year 2013 ratio was 91% and it declined to 88% and 84%in the year 2013 and

2014 respectively. In the year 2017 and 2018 ratio was increased to 92% and 99%

respectively. It leads to the conclusion that credit performance of the ICICI Bank

is very good.

89
FINDINGS

90
 FINDINGS

 Ratios are means for presenting numerical relationships between items or groups of

items. A ratio is determined by dividing one item in a relationship with the other.
 Generally, financial ratios are computed from financial statements and so ratios

developed for an analysis of a firm’s performance and financial position are

subject to the same limitations, which are present in the accounting statements

themselves.
 Ratios are used in the analysis of financial statements of a business in order to reveal

underlying economic trends in its activities and to discover its STRENGTHS

AND WEAKNESSES as compared with the trends of sister companies.

 Capital investment decisions are long-term corporate finance decisions relating to

fixed assets and capital structure.

 Making big investment decisions means that we must allocate substantial amounts of

major resources of people, time, technology, intellectual capital, and, of course,

money
 The working capital is increasing in comparison to last year which is good for the

liquidity of the company.

 During the year, the ICICI Bank has pursued a strategy of prioritizing capital

conservation, liquidity management and risk containment given the challenging

economic environment. This is reflected in the ICICI Bank’ strong capital

adequacy and its focus on reducing its wholesale term deposit base and increasing

its CASA ratio. The ICICI Bank is maintaining excess liquidity on an ongoing

basis. The ICICI Bank has also placed strong emphasis on efficiency

improvement and cost rationalization. The ICICI 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.

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 In line with the above strategy, the total deposits of the ICICI Bank were Rs. 218,348

crore (US$ 43.0 billion) at March 31, 2016, compared to Rs. 244,431 crore (US$

48.2 billion) at March 31, 2015. The reduction in term deposits by Rs. 24,970

crore (US$ 4.9 billion) was primarily due to the ICICI Bank’ conscious strategy of

paying off wholesale deposits. During Q4-2016, 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, 2016 from 26.1% at March 31, 2015.

 The branch network of the ICICI Bank has increased from 755 branches at March 31,

2014 to 1,438 branches at April 24, 2016. The ICICI Bank is also in the process of

opening 580 new branches which would expand the branch network to about

2,000 branches, giving the ICICI 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 ICICI Bank decreased marginally to Rs. 218,311 crore (US$ 43.0

billion) at March 31, 2016 from Rs. 225,616 crore (US$ 44.5 billion) at March 31,

2015.

 Liquidity position: The liquid ratio of the ICICI Bank in the year 2012,2013 and

2016 is 0.60,0.67and 0.68 respectively and the year 2014 and 2015 liquid ratio is

0.97 and 0.88 respectively which is close to 1.Though it is not equal to the ideal

liquid ratio of 1:1 but still its under control. So in nut shell, it can be concluded

that the liquidity position of the ICICI Bank is quite satisfactory.

 Capital adequacy and return on capital employed The ICICI Bank’s capital

adequacy at March 31, 2016 as per Reserve ICICI Bank of India’s revised

guidelines on Basel II norms was 15.5% and Tier-1 capital adequacy was 11.8%,

well above RBI’s requirement of total capital adequacy of 9.0% and Tier-1 capital

92
 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 ICICI Bank as it shows better return on capital employed over years.

 Asset quality: At March 31, 2016, the ICICI Bank’s net non-performing asset ratio

was 1.96%. During the year the ICICI Bank restructured loans aggregating to Rs.

1,115 crore (US$ 220 million).

 Dividend on equity shares Since the dividend per share has shown a promising

increase for the period under study. It shows that the ICICI 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 ICICI 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 show a

promising increase. it suggests that ICICI 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 ICICI Bank has performed satisfactorily as regard to

granting loans and advances to generate income. It suggests that credit

performance is good and the ICICI Bank is doing its business well by fulfilling its

major objective as regards to granting loans and accepting deposits.

93
SUGGESTIONS

94
 SUGGESTIONS

1) The company should concentrate more on the Cash and Bank Balance side. As

the Reserves and Surplus are decreasing year by year whereas the Debts / Loans

are increasing. It should be controlled.

2) ICICI Bank has been paid the major portion of its earnings as dividend when

compared to previous years (2016-17). The enterprise has to retain some more

amounts of its earnings for the future use. The enterprise may have some

extension plans for future.

3) ICICI Bank will have to consider the steep increase in the Current Liabilities in

financial year 2015-16. The Firm should take measures to control and repay them

as far as possible.
4) The company should keep sufficient cash or bank balance in order to meet its

liability immediately. Otherwise it will adversely affect the liquidity position of

the company.
5) There should be a proper management for the effective utilization of Current

Assets and Fixed Assets in order of making sales.

6) ICICI Bank should develop a proper method for identifying budgeted sales. The

raw material consumption is to be controlled according to the budgeted sales.

This will helps to increase their operating profit as well as gross profit.
7) The company should focus on the debtors side, as the number of debtors goes on

increasing each year. Increasing number of debtors leads to lower working

capital.
8) The company should adopt proper sales strategy and their collection facilities.
9) A formal Inventory policy should be drawn out in respect of Raw Materials, as it

is a critical area for the Company

The overall profitability and efficiency of the business should enhance. Otherwise

the business cannot obtain satisfactory return on capital invested and return on

Total Assets.

95


96
CONCLUSION

97
 CONCLUSION

My experience with ICICI Bank Ltd. is outstanding. While working in ICICI Bank I

found that this bank has developed manifold in short period of time due to facilities

and services provided to their customer and this growth rate can be keep it up if they

start to go in semi-urban areas. In last couple of years they have opened new many

branches and they should open many more. The working staffs are very co-operative

in nature and due to that the bank will also get good benefit. ICICI Bank has provided

their customer Net-banking facilities and due to that transactions are done fast.

Charges at ICICI Bank are when I compare it with Yes bank and ICICI bank. Charges

are high because ICICI Bank provides more variety of account to its customer. And

when I compare ICICI Bank to HDFC bank charges of ICICI Bank is less than HDFC

bank.
ICICI Bank also provide ATM services 24 hours, also give free balance enquiry
To its account holder , it also provide addition services to its account holders like bill

payment , tax payment, mobile all this addition services are free of cost . But ICICI

Bank competitor charge for this services.

By analyzing all this statistical tools, conclusion can be derived that ICICI Bank is one of the

good option which investor can choose. Study reveals that ratios indicate investors will gain

in near future.

98
BIBLIOGRAPHY

99
 BIBLIOGRAPHY
 Pandey, I.M. (2011), “Financial Management (Eighth Revised

Edition)”,Vikas Publishing House Pvt. Limited, New Delhi.

 Porterfield (1965), “Investment Decisions and Capital Costs”, Prentice Hall,

Engle Wood Cliffs, N.J.

 Porwal, L.S.(1976), “Capital Budgeting in India”, Sultan Chand and Sons,

New Delhi.

 Annual Reports of ICICI Bank 2015-2019.

 Published Data of ICICI Bank

100