A STUDY ON

FINANCIAL ANALYSIS OF ICICI BANK LTD

A Project Report Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY ANANTAPUR
In partial fulfillment of the requirements
for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

By
S R SANTHOSH KUMAR
Regd.No.20691E00G1

Under the guidance and supervision of

Dr. N. GANGISETTY
M. Com., M.B.A., Ph.D.,
Professor
DEPARTMENT OF MANAGEMENT STUDIES

DEPARTMENT OF MANAGEMENT STUDIES

MADANAPALLE INSTITUTE OF TECHNOLOGY & SCIENCE
(UGC AUTONOMOUS)
(Affiliated to Jawaharlal Nehru Technological University Anantapur, Ananthapuramu)

MADANAPALLE – 517 325

ANNAMAYYA DISTRICT, A.P.

2020-2022
 DECLARATION

I declare that this project entitled “A STUDY ON FINANCIAL ANALYSI OF ICICI

BANK LTD ” is a Bonafide work submitted to Jawaharlal Nehru Technological University

Anantapur, Ananthapuramu under the guidance and supervision of Dr. N. GANGISETTY,

Professor, Department of Management Studies, Madanapalle Institute of Technology & Science,

Madanapalle, for the award of MASTER OF BUSINESS ADMINISTRATION is a record of

original work done by me and that the project has not previously formed the basis for the award

of any degree.

Date: S. R. SANTHOSH KUMAR

Place: Regd.NO.20691E00G1
 CERTIFICATE

Certified that the project report entitled “A STUDY ON FINANCIAL ANALYSIS OF

ICICI BANK LTD” submitted by Mr. S. R. Santosh Kumar (Reg.No.20691E00G1) for the

award of Master of Business Administration of Jawaharlal Nehru Technological University

Anantapur, Ananthapuramu, is a record of independent project work undertaken by her under

y supervision and guidance and the project has not been submitted either in part or whole for the

award of any other degree or diploma of any university.

Dr. N. GANGISETTY M.Com. M.B.A., Ph.D. Dr. SREMMANT BASU

Professor& Project Guide Professor & HOD

Department of Management Studies Department of Management Studies

INTERNAL EXAMINER EXTERNALEXAMINER

 ACKNOWLEDGEMENT

I would like to thank to all persons who have contributed towards the successful
completion of the project work, I am glad to say working on this project has been both
illuminating and enjoyed for me.

I have deep sense of gratitude to Dr. N. GANGISETTY, M. Com, MBA, Ph.D.,

Professor & Project Guide, Department of Management Studies, for his encouragement,
guidance and valuable suggestions throughout the project.

I take this opportunity to thank Dr. N. VIJAYA BHASKAR CHOUDARY GARU,

Ph.D., Secretary& Correspondent, Dr. C. YUVARAJ, Principal, and Dr. SREMMANT
BASU, Professor& Head, Department of Management Studies, for their continuous support and
encouragement.

My heartfelt Thanks to my parents & Friends for going out of their way to see that I
successfully implementing and completing this project. Their words of wisdom and patience
were much more than a blessing.

I would like to thank all the faculty members of Department of Management Studies,
MITS who directly and indirectly helped me to complete this project.

S R SANTHOSH
KUMAR
Reg No: 20691E00G1
 CONTENTS
Chapter Page
TITTLE
No. No.
DECLARATION

CERTIFICATES

PLAGARISM REPORT

ACKNOWLEDGEMENT

LIST OF TABLES

LIST OF GRAPHS

ABSTRACT

1 INTRODUCTION

2 INDUSTRY & COMPANY PROFILE

3 RESEARCH METHODOLOGY

4 DATA ANALYSIS & INTERPRETATION

5 SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION

BIBLIOGRAPHY

REFERENCES
 LIST OF TABLES
Table Page
Title
No. No.
Table showing Current Ratio of ICICI Bank Ltd for the year
4.1
2017-18 to 2021-22
Table showing Quick Ratio of ICICI Bank Ltd for the year 2017-
4.2
18 to 2021-22

Table showing Cash ratio of ICICI Bank Ltd for the year 2017-18
4.3
to 2021-22
Table showing Gross Profit Ratio of ICICI Bank for the year
4.4
2017-18 to 2021-22

Table showing Net Profit Ratio of ICCI Bank for the year 2017-18
4.5
to 2021-22

Table showing Operating Profit Ratio of ICICI Bank for the year
4.6
2017-18 to 2021-22

Table showing Return on Capital Employed Ratio of ICICI Bank

4.7
Ltd for the year for the 2017-18 to 2021-22

Table showing Debt Ratio of ICICI Bank Ltd for the year 2017-18
4.8
to 2021-22

Table showing Debt Equity Ratio of ICICI Bank Ltd for the year
4.9
2017-18 to 2021-22

Table showing Interest Coverage Ratio of ICICI Bank Ltd for the
4.10
year 2017-18 to 2021-22

Table showing Proprietary Ratio of ICICI Bank Ltd for the year
4.11
2017-18 to 2021-22

Table showing Working Capital Turnover Ratio of ICICI Bank

4.12
Ltd for the year 2017-18 to 2021-22
 Table showing Total Assets Turnover Ratio of ICICI Bank Ltd for
4.13
the year 2017-18 to 2021-22

Table showing Debtors Turnover Ratio of ICICI Bank Ltd for the
4.14
year 2017-18 to 2021-22

Table showing Fixed Assets Turnover Ratio of ICICI Bank Ltd

4.15
for the 2017-18 to 2021-22

LIST OF GRAPHS
Table Page
Title
No. No.
Graph showing Current Ratio of ICICI Bank Ltd for the year
4.1
2017-18 to 2021-22
Graph showing Quick Ratio of ICIC Bank Ltd for the year 2017-
4.2
18 to 2021-22

Graph showing Cash Ratio of ICICI Bank Ltd for the year 2017-
4.3
18 to 2021-22
Graph showing Gross Profit Ratio of ICICI Bank Ltd for the year
4.4
2017-18 to 2021-22

Graph showing Net Profit Ratio of ICICI Bank Ltd for the year
4.5
2017-18 to 2021-22

Graph showing Operating Profit Ratio of ICICI Bank Ltd for the
4.6
year 2017-18 to 2021-22

Graph showing Return on Capital Employed Ratio of ICICI

4.7
Bank Ltd for the year 2017-18 to 2021-22

Graph showing Debt Ratio of ICICI Bank Ltd for the year 2017-
4.8
18 to 2021-22

Graph showing Debt Equity Ratio of ICICI Bank Ltd for the year
4.9
2017-18 to 2021-22
 Graph showing Interest Coverage Ratio of ICICI Bank Ltd for
4.10
the year 2017-18 to 2021-22

Graph showing Proprietary Ratio of ICICI Bank Ltd for the year
4.11
2017-18 to 2021-22

Graph showing Working Capital Turnover Ratio of ICIC Bank

4.12
Ltd for the year 2017-18 to 2021-22

Graph showing Total Assets Turnover Ratio of ICICI Bank Ltd

4.13
for the year 2017-18 to 2021-22

Graph showing Debtors Turnover Ratio of ICICI Bank Ltd for

4.14
the year 2017-18 to 2021-22

Graph showing Fixed Assets Turnover Ratio of ICICI Bank for

4.15
the Year 2017-18 to 2021-22
 ABSTRACT
The Indian Banking market is growing at an astonishing rate. The banks are being
segregated into different groups. Each group has its benefits and limitations in operating in India.
ICICI Bank is India’s largest private sector bank. The bank’s consolidated total assets stood at
RS. 12.50 trillion On June 30 2019. ICICI Bank currently features a network of 5275 branches
and 15589 ATMs across India. The analysis is formed by considering the financial statements of
the past five years. The income of the bank has increased over the amount. The bank has
succeeded in maintaining an inexpensive profitability position. The bank continued to expand its
branch network in India. The Research Accelerates towards assessing ICICI Bank’s profitability
to work out the financial situation of ICIC Bank. It ends at measuring the liquidity position and
analyses ICICI Bank’s solvency. Which provides us a crystal-clear insight into the financial
journey of the Bank.
 1.INTRODUCTION

1.1 INTRODUCTION OF FINANCIAL ANALYSIS

Meaning of Financial Statements

Financial statements check with such statements which includes monetary facts approximately
an organization. They report profitability and the monetary role of the commercial enterprise on
the end of accounting length. The team monetary announcement consists of as a minimum two
statements which the accountant prepares on the stop of an accounting length. The statements
are:

• The Balance Sheet

• Profit And Loss Account.

What is Financial Analysis?

The procedure of reviewing and analyzing an organization’s monetary statements to make higher
economic decisions is called the analysis of monetary statements. In other words, financial
analysis is the procedure of determining the financial strengths and weaknesses of the entity by
way of setting up the strategic relationship among the gadgets of the stability sheet, income and
loss account, and different economic statements.

Meaning of Financial Analysis:

The term monetary evaluation is also known as ‘evaluation and interpretation of monetary
statements’ refers back to the method of figuring out financial electricity and weakness of the
firm via setting up strategic dating between the objects of the Balance Sheet, Profit and Loss
account and other operative records.

The first mission of economic analysis is to pick out the information relevant to the selection
under consideration to the full facts contained in the monetary announcement. The2nd step is to
arrange the statistics in a manner to focus on large relationship. The very last step is
interpretation and drawing of inference and conclusions. Financial statement is the technique of
selection, relation and evaluation.

SCOPE OF FINANCAIL ANALYSIS:

The purpose of financial Statement Analysis is to assess the past, modern-day, and future
performance and economic function of the enterprise for the motive of creating investment,
credit score, and different monetary choices.

Features of Financial Analysis:

1. To present a complex fact contained in the financial declaration in easy and

comprehensible shape.

2. To classify the objects contained in the financial announcement in handy and rational
agencies.
3. To make contrast between numerous organizations to attract numerous conclusions.

Purpose of Analysis of financial statements:

1. To know the earning capacity or profitability.

2. To know the solvency.
3. To know the financial strengths.
4. To know the capacity of payment of interest & dividends.
5. To make comparative study with other films.
6. To know the trend of business.
7. To know the efficiency of company.
8. To provide useful information to company.
Procedure of Financial Statement Analysis:

The following procedure is adopted for the analysis and interpretation of financial statement:

 The analyst ought to acquaint himself with concepts and postulated of accounting He
must recognize the plans and guidelines of the control in order that he may be capable to
discover whether those plans are nicely finished or now not.

 The volume of analysis needs to be decided so that the sector of labor can be Decided. If
the purpose is discovered. Earning potential of the agency then analysis of Profits
statement may be undertaken. On the other hand, if monetary function is to be studied
then stability sheet analysis can be vital.

 The monetary statistics be given in announcement must be identified and rearranged. It

Will contain the grouping comparable information below same heads. Breaking down of
men or woman additives of statement according to nature. The data is decreased to a
popular shape.

 A dating is established amongst monetary statements with the help of equipment &
strategies of analysis together with ratios, developments, commonplace size, fund glide
etc.

 The statistics is interpreted in a easy and understandable way. The significance and
software of monetary records is explained for help in selection making.

Importance of Financial Analysis:

The analysis of financial statement is crucial for the following reasons.

 1. The shares investment and holding.
2. Plans, decisions and management.
3. Providing credit.
4. Decisions on investments.

1.2 TYPES OF FINANCIAL ANALYSIS:

1. Horizontal Analysis:

Horizontal analysis is used within the evaluation of an agency's monetary statements over a
couple of intervals. It is usually depicted as percentage growth over the equal line item in the
base year. Horizontal analysis allows monetary assertion customers to easily spot developments
and increase patterns.

2. Vertical Analysis:

Vertical analysis is a technique of economic assertion evaluation in which every line object is
listed as a percent of a base parent in the declaration. Thus, line gadgets on an earnings
announcement can be said as a percentage of gross income, whilst line gadgets on a stability
sheet can be stated as a percentage of overall belongings or liabilities, and vertical evaluation of
a cash go with the flow declaration suggests every cash influx or outflow as a percentage of the
total coins’ inflows.

3. Trend Analysis:

Trend analysis is a method utilized in technical evaluation that attempts to predict destiny
inventory fee moves primarily based on these days found trend statistics. Trend analysis uses
historical facts, which includes price moves and exchange extent, to forecast the lengthy-time
period route of marketplace sentiment.

4. Liquidity Analysis:

Liquidity ratio evaluation facilitates in measuring the short-term solvency of a commercial

enterprise. This way it enables in measuring a corporation's potential to meet its brief-time period
obligations. Thus, liquidity shows how fast assets of a business enterprise get transformed into
coins.

5. Solvency Analysis:

Solvency is the ability of an agency to fulfill its lengthy-time period debts and other economic
obligations. Solvency is one measure of an employer's economic health, because it demonstrates
an agency's capacity to control operations into the foreseeable future. Investors can use ratios to
investigate a company's solvency.

6. Profitability Analysis:

Profitability analysis is a part of company resource planning (ERP) that permits administrators to
forecast the profitability of a suggestion or optimize the profitability of a current task.

7. Variance Analysis:

Variance analysis is the examiner of deviations of real behaviors as opposed to forecasted or

planned behaviors in budgeting or control accounting. This is basically involved with how the
difference of real and deliberate behaviors indicates how enterprise overall performance is being
impacted.

8. Accounting Analysis:

Account analysis is a procedure wherein certain line gadgets in an economic transaction or

declaration are carefully tested for a given account, frequently via a trained auditor or
accountant. An account evaluation can help pick out tendencies or provide a demonstration of
how a particular account is appearing.

Methods/Tools of Financial Analysis:

A number of techniques can be used for the motive of analysis of economic statements. These
are also termed as techniques or equipment of financial analysis. Out of these, and corporation
can pick the ones strategies which can be appropriate to its requirements. The fundamental
strategies of financial analysis are: -

1. Comparative financial statements

2. Ratio Analysis
3. Cash flow statement.

1.3 Comparative financial statement:

Tools for comparison of financial statements:

Comparative economic statement is a tool of economic evaluation that depicts alternate in every
item of the financial announcement in each absolute amount and percent term, taking the object
in preceding accounting duration as base.

Comparison and analysis of financial statements may be carried out using the following tools:

1. Comparative Balance Sheet:

The comparative balance sheet shows boom and lower in absolute phrases in addition to
chances, in numerous belongings, liabilities and capital. A comparative analysis of balance
sheets of duration gives information regarding progress of the business firm. The main purpose
of comparative stability sheet is to degree the fast- term and long-term solvency position of the
business.

2. Comparative Income Statement:

Comparative income statement is prepared by taking figures of two or more than two accounting
periods, to enable the analyst to have definite knowledge about the progress of the business.
Comparative income statements facilitate the horizontal analysis since each accounting variable
is analyzed horizontally.

1.4 Ratio Analysis:

Meaning:
Absolute figures expressed in monetary statements via themselves are meaningfulness. These
figures regularly do not carry a whole lot that means unless expressed in relation to other figures.
Thus, it can be said that the relationship between figures, expressed in arithmetical terms is
known as a ratio.

Types of Ratios:
1. Liquidity Ratios
2. Profitable Ratios
3. Leverage Ratios
4. Activity or Efficiency Ratios.
1 Liquidity Ratios:
A crucial group of financial indicators known as liquidity ratios is used to assess a debtor's
capacity to settle current debt commitments without the need for outside funding. The
measurement of indicators such as the current ratio, quick ratio, and operating cash flow ratio
allows us to calculate liquidity ratios, which assess a company's capacity to satisfy debt
obligations as well as its margin of safety.
A. Current Ratio
B. Quick Ratio
C. Cash Ratio

Current Ratio:
The Current ratio is a liquidity ratio that measures an agency’s capacity to pay short-term
responsibilities or those due within 365 days. It tells traders and analysts how a company can
maximize the contemporary assets on its stability sheet to satisfy its cutting-edge debt and
different payables.

Quick Ratio:
The Quick ratio is a hallmark of an organization’s brief-time period liquidity role and measures
an enterprise’s capability to fulfill its brief-term responsibilities with its most liquid assets. Quick
ratio is also called as Acid Test Ratio.
Cash Ratio:
The cash ratio is a measurement of a business enterprise's liquidity. It particularly calculates the
ratio of an enterprise's overall coins and coins equivalents to its modern-day liabilities. The
metric evaluates corporation's capability to repay its short-term debt with cash or near-coins
sources, together with without difficulty marketable securities. This record is useful to lenders
when they decide how a whole lot cash, if any, they would be willing to mortgage a corporation.

2.Profitable Ratio:

Using information at a single point in time, profitability ratios are a class of financial
measurements that are used to evaluate a company's capacity to generate profits in relation to its
revenue, operating costs, balance sheet assets, or shareholders' equity over time.
A. Gross Profit Ratio
B. Net Profit Ratio
C. Operating Profit Ratio

Gross Profit Ratio:

Gross profit is the amount of money a business makes after deducting costs for producing,
distributing, and selling its goods or services. A company's income statement will show gross
profit, which is derived by deducting cost of goods sold (COGS) from revenue (sales). The
income statement of a business will contain these numbers. Sales profit or gross income are other
names for gross profit.

Net Profit Ratio:

The net profit ratio, also known as the net profit margin ratio, is a profitability statistic that
assesses how much money is brought into the company relative to its earnings.

Operating Profit Ratio:

Operating profit is divided by total sales to create an operating profit ratio. This metric displays
the proportion of operating profit a business generates (before subtracting tax and interest).
The operating Profit Ratio measures how an awful lot profit an enterprise makes on a greenback
of income after buying variable expenses of production, including wages and raw materials, but
before paying hobby or tax. It is calculated by means of dividing an employer’s working profits
by its internet income.

3.Levarage Ratios:
A leverage ratio is one of many financial metrics that evaluates a company's capacity to fulfil its
financial commitments. In order to estimate how changes in output would impact operating
profits, a company's mix of operating expenses may also be measured using a leverage ratio.
A. Debt Ratio
B. Debt Equity Ratio
C. Interest Coverage Ratio
D. Proprietary Ratio

Debt Ratio:
The Term "debt ratio" refers to a financial ratio that assesses how much leverage a business has.
The ratio of total debt to total assets, represented as a decimal or percentage, is known as the debt
ratio. The percentage of a company's assets that are financed by debt is one way to understand it.
A ratio higher than one indicates that a significant percentage of a company's debt is supported
by assets, indicating that the corporation has more obligations than assets.

Debt Equity-Ratio:
The debt-to-equity (D/E) ratio, which measures a company's financial leverage, is determined by
dividing all of its obligations by the value of its shareholders. An essential statistic in corporate
finance is the D/E ratio. It gauges the proportion of a company's operations that are financed by
debt as opposed to completely owned assets.

Interest Coverage Ratio:

A debt and profitability measure called the interest coverage ratio is used to assess how easily a
business can pay the interest on its existing debt. Divided by interest expense during a specific
time period, a company's earnings before interest and taxes (EBIT) yields the interest coverage
ratio.

Proprietary Ratio:
The proprietary ratio, sometimes referred to as the net worth ratio or equity ratio, is used to
assess how strong a company's financial structure is. To calculate it, divide total assets by
stockholders' equity.
4.Activity or Efficiency Ratio:
Analysts utilize efficiency ratios, commonly referred to as activity ratios, to assess a company's
short-term or current performance. All of these ratios quantify business activities by using data
from a company's current assets or current liabilities.
A. Working Capital Turnover Ratio
B. Total Assets Turnover Ratio
C. Debtors Turnover Ratio
D. Fixed Assets Turnover Ratio

Working Capital Turnover Ratio:

 working capital turnover Ratio assesses how well a business uses its working capital to promote
sales and expansion. Working capital turnover, also known as net sales to working capital,
gauges the connection between the resources utilized to finance an organization's operations and
the revenues that organization generates to maintain operations and make a profit.

Total Assets Turnover Ratio:

A company's sales or revenues are compared to the value of its assets using the asset turnover
ratio. The asset turnover ratio can be used to gauge how effectively a business uses its assets to
produce income.
The more effectively a corporation uses its assets to generate revenue, the greater its asset
turnover ratio. A corporation is not effectively employing its assets to produce sales if it has a
low asset turnover ratio, on the other hand.

Debtors Turnover Ratio:

Debtors turnover Ratio is another name for the Receivables Turnover Ratio. The turnover ratio
demonstrates how rapidly credit sales are turned into cash. This ratio assesses a company's
effectiveness in controlling and collecting client credit.

Fixed Assets Turnover Ratio:

analysts typically utilize the fixed asset turnover ratio (FAT) to gauge operating performance.
This efficiency ratio assesses a company's capacity to generate net sales from its fixed-asset
investments, specifically property, plant, and equipment (PP&E). It compares net sales (income
statement) to fixed assets (balance sheet) (PP&E).

OBJECTIVES AND ADVANTAGES or USES OF RATIO ANALYSIS:

1. Helpful in analysis of economic statements.
2. Simplification of accounting facts.
3. Helpful in comparative examine.
4. Helpful in finding the weak spots of the business.
5. Helpful in forecasting
6. Estimate about the trend of the commercial enterprise
7. Fixation of best requirements
8. Effective manipulate
9. Study of monetary soundness.

LIMTATIONS OF RATIO ANALYSIS:

1. False accounting information gives false ratios

2. Comparisons no longer possible of different firms undertake distinct
3. Accounting policies.
 4. Ratio analysis will become much less powerful because of charge stage
5. Trade
6. Ratios may be misleading inside the absence of absolute statistics.
7. Limited use of an unmarried Ratio.
8. Window-Dressing
9. Lack of right requirements.
10. Ratio on my own are not good enough for correct conclusions
11. Effect of personal ability and bias of the analyst.
CASH FLOW STATEMENT:
A cash – flow statement is a statement showing inflows (receipts) and outflows (payments) of
cash during a particular period. In other words, it is a summary of sources and applications of
each during a particular span of time.

OBEJECTIVES OF CASH FLOW STATEMENT:

1. Useful for Short-Term Financial Planning.
2. Useful in Preparing the Cash Budget.
3. Comparison with the Cash Budget.
4. Study of the Trend of Cash Receipts and Payments.
5. It explains the Deviations of Cash from Earnings.
6. Helpful in Ascertaining Cash Flow from numerous separately.
7. Helpful in Making Dividend Decisions.

.
 2. INDUSTRY PROFILE & COMPANY PRPFILE
2.1.1 Definition of Banking:

A bank is a financial institution that accepts deposits from the public and creates a demand
deposit while simultaneously making loans.

Banks are playing a key role in financial stability and the economy of a country, most
countries have institutionalized a system known as fractional reserve banking, banks are
generally subject to minimum capital requirements based on an international set of capital
standards, the Basel accords.

ORIGIN OF THE WORD “BANK”

One perspective claim that the Italian business houses operating in the unrefined banking sector
were known as Banchi Bancheri. Another way of view holds that the word "banking" originates
from the German word "brank," which signifies a stack or pile. The issuance of paper money by
the government was known as raising a bank in England.

ORIGIN OF BANKING

Banking became important because it offers a secure location to store money. This secure
location eventually developed into modern commercial banks, which are financial entities that
receive deposits and provide loans.
In India, modern banking began in the middle of the 18th century. Among the early banks were
the General Bank of India, founded in 1786 but failing in 1791, and the Bank of Hindustan,
founded in 1786 and liquidated in 1829–1832.

2.1.2 BANKING SYSTEM IN INDIA

The banking system plays an important role in promoting economic growth not only by
channeling savings into investments but also by important allocative efficiency of resources.

The banking system of India consists of the central bank (Reserve bank of India- RBI),
commercial bank, cooperative bank and development banks (development finance institutions).
These institutions, which provides a meeting ground for the savers and the investors from the
core of Indian’s financial sector.

The banking system of India should not only be Hassel free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.

For the past three decades India’s banking system has several outstanding Achievements to its
credit. The most striking its extensive reach. Indian banking system has reached even to the
remote corners of the country. This is one of the main reasons of Indian’s growth process.

2.1.3 HISTORY OF BANKNG IN INDIA

The history of Banking in India dates back to before India got independence in 1947 and is a key
topic in terms of questions asked in various Government exams.

During the days of East India Company, it was the turn agency house to carry on the banking
business. The General Bank of India was the first joint stock bank to be established in the year
1786. The bank of Hindustan is reported to have continued till 1906.

In the first half of the 19th century the East India Company established three banks, the Bank of
Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in 1843. These three
banks also known as presidency banks were the independent units and functional well. These
three banks were amalgamated in 1920 and new bank, the Empirical Bank of India was
established on 27th January, 1921.
With the passing of the State Bank of India act in 1955 the undertaking of the imperial Bank of
India was taken over by the newly constituted SBI. The Reserve Bank of India which is the
central bank was established in April, 1935 by passing Reserve bank of India act 1935. The
central office of RBI is in Mumbai and it control all the other banks in country.

Number of banks with the Indian management were established in the country namely, Punjab
National Bank Ltd. Bank of India Ltd. Bank of Baroda Ltd. Canara Bank Ltd. On 19 th 1969, 14
major commercial private sector banks were taken by the government.

The first bank in India, through conservative, was established in 1786. From 1786 till today, the
banking sector development can be classified into three phases.

Phase-1_ The Early phase which lasted from 1771 to 1969.

Phase-2_The Nationalization phase which lasted from 1969 to 1991.

Phase-3_ The Liberalization or the Banking sector Reforms phase which began in 1991 and
countries to flourish till date.

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks.

These three banks were amalgamated in 1920 and imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National
Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of
India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore
were set up. Reserve Bank of India came in 1935.

Government took major steps in this Indian Banking Sector Reform after independence. In 1955,
it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially
in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI
and handle banking transactions of the Union and State Government all over the country.
The following are the steps taken by the Government of India to Regulate Banking Institutions in
the Country.

 1949: Enactment of Banking Regulation Act.

 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of Credit Guarantee Corporation.
 1975: Creation Regional Corporation.
 1980: Nationalization of Several Banks with deposits over 200cr.

After the Nationalization of Banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the
sunshine in the Government Ownership gave the public implicit faith and immense confidence
about the sustainability of these institutions.

This phase has introduced many more products and facilities in the banking sector on its reforms
measure. In 1991, under the Chairmanship of M Narasimham, a committee was set up by his
name which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced. The entire
system became more convenient and swifter. Time is given more importance than money.

The financial system of India has shown a Great deal of resilience. It is sheltered from any crisis
trigged by any external macroeconomics shock as other East Asian Countries suffered. This is all
due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not
yet fully convertible, and banks and their customers have limited foreign exchange exposure.

BANKING STRUCTURE IN INDIA

SCHEDULED BANKS IN INDIA

(1) Scheduled commercial Banks

 Private Sector Foreign Banks in Regional Rural
Public Sector Banks
Banks India Banks
 Nationalized
Bank
 Old Private
 Other Public
Banks
Sector Banks
 New Private
(IDBI)
Banks
 SBI And Its
Associates
2. Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks

Public Sector Banks

Banks in the public sector are those that the government owns. These banks are governed by the
state. In India, 6 additional banks were nationalized in 1980 after 14 banks were already done so
in 1969. Thus, there were 20 nationalized banks in 1980. In India, there are now 26 public sector
banks. Six of these 19 nationalized banks (STATE BANK OF INDIA ALSO MERGED
RECENTLY) are a part of the SBI & Associate group, while I Bank (IDBI Bank) is categorized
as an additional public sector bank. The fundamental goal of both of these banks is to promote
public welfare.

Nationalized banks Other Public Sector SBI & Its Associates

 Allahabad Bank
 Andhra Bank
 Bank of Baroda
 Bank of Maharashtra
 Canara Bank
Banks
 State Bank of India
IDBI (Industrial  State Bank of
Development Bank of Hyderabad
India) Ltd.  State Bank of Mysore
 State Bank of Patiala
  Central Bank of India  State Bank of
 Corporation Bank Travancore
 Dena Bank  State Bank of Bikaner
 Indian Bank And Jaipur
 Indian Overseas Bank
 Oriental Bank of
Commerce (State Bank of Saur

 Punjab & Sind Bank Astra merged with SBI

 Punjab National Bank in the year 2008 and

 Syndicate Bank State Bank of Indore in

 UCO Bank 2010)

 Union Bank of India

 United Bank of India
 Vijaya Bank


Private Sector Banks

Owned and operated by the private sector, these banks are in the private sector. Several banks
throughout the nation, including ICICI Bank, HDFC Bank, etc. A person has authority over the
way their banks are prepared up to the portion of the banks he owns.

Private banking has been a tradition in India ever before the country's financial system was
established. The first private bank to open in the country's private sector. Such as IndusInd Bank.
In terms of private banks in India, IDBI is the tenth-largest development bank in the world and
has

supported top-tier institutions there.

Housing Development Finance Corporation Limited opened the first private bank in India to be
given in-principal authorization by the Reserve Bank of India.
Foreign Banks in India

Abroad banks or foreign banks in India, indicating a global bank is a financial institution that
operates outside of its native country of the United States of America and offers financial
services to clients around the world. A specific kind of global bank that is obligated to follow the
laws of both its home and host United States is a branch of a foreign financial institution.

Cooperative Banks in India

Based on the responsibilities given to cooperatives, the expectations placed on them, their size,
and the number of offices they operate, it can be concluded that cooperative banks play a
significant part in the Indian financial system.

The cooperative movement may have started in the West, but no other country in the world
comes close to matching the significance that these banks have come to have in India. Even
today, India's cooperative banks are crucial to rural lending. Due to the dramatic rise in the
number of primary co-operative banks, the business of cooperative banks in metropolitan areas
has also expanded phenomenally in recent years.

The Co-operative Societies Act governs the registration of cooperative banks in India. The RBI
also controls the cooperative bank. The Banking Regulations Act of 1949 and the Banking Laws
(Co-operative Societies) Act of 1965.

Rural banks in India

Since the beginning of the banking industry in India, rural banking has existed. The agriculture
industry was the main emphasis of rural banks at the time. India's regional rural banks have
spread throughout the entire nation, aiding in the development of the nation.

In India, SBI operates 30 Regional Rural Banks, or RRBs. The SBI rural banks are dispersed
across 13 states, from North East to Himachal Pradesh and Kashmir to Karnataka. There are
2349 branches throughout all of SBI's regional rural banks in India (16%). There are currently
14,475 rural banks in India, 2126 of which (91%) are situated in remote regions.
NABARD

National Bank for Agriculture and Rural Development (NABARD) is a development bank in the
sector of Regional Rural Banks in India. It provides and regulates credit and gives services for
the promotion and development of rural sectors mainly agriculture, small scale industries,
cottage and village industries, handcrafts. It also finances rural crafts and allied rural economic
activities to promote integrated rural development. It helps in securing rural prosperity and its
connected matters.

2.2 COMPANY PROFILE

2.2.1 INTRODUCTION OF ICICI BANK

ICICI Bank Limited is an Indian multinational bank and financial services company head
quartered in Vadodara. It offers a wide range of banking products and financial services for
corporate and retail customers through a variety of delivery channels and specialized subsidiaries
in the areas of investment banking, life, non- life insurance, venture capital and asset
management.

The Bank has a network of 5,275 branches and 15,589 ATMs across India and has a presence in
17 countries. The bank has subsidies in the United Kingdom and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai International Finance Centre, China
and South Africa.
History of ICICI

 1955: The Industries Credit and Investment Corporation of India Limited (ICICI) was
incorporated at the initiative of World Bank.
 1956: ICICI declared its first dividend of 3.5%
 1958: Mr. G.L Mehta appointed the second Chairman of ICICI Ltd.
 1960: ICICI Building at 163, Back by Reclamation, inaugurated.
 1961: The first West German loan of DM 5 million from Kredianstalt obtained.
 1967: ICICI made its first debenture issue for Rs.6crore, which was oversubscribed.
 1969: The first two regional offices in Calcutta and Madras set up.
 1972: The second entity in India to set up merchant banking services, Mr. H T. Parekh
appointed the third Chairman of ICICI.
 1977: ICICI sponsored the formation of Housing Development Finance Corporation.
Managed its first equity public issue.
 1978: Mr. James Raj appointed the fourth Chairman of ICICI.
 1979: Mr. Siddhartha Mehta appointed the fifth Chairman of ICICI.
 1982: ICICI became the first ever Indian borrower to raise European Currency Units,
 1984: Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
 1985: Mr. N. Vague appointed the seventh Chairman and Manager Director of ICICI
 1986: ICICI became the Indian institution to receive ADB Loans: ICICI, along with
UTI, set up Credit Rating Information services of India Limited.
 1987: ICICI signed a loan agreement for Sterling Pound 10 million loan by CDC for
financing projects in India.
 1988: Promoted TDICI – India’s first venture capital company.
 1999: ICICI launched retail finance – car loans, house loans and loans for consumer
durables.
 2000: ICICI Bank became the first commercial bank from India to list its stock on
NYSE.
 2001: ICICI acquired Bank of Madura. Bank of Madura was a Chattier bank, and had
acquired Chettinad Mercantile Bank.
  2002: The merger was approved by shareholders of ICICI and ICICI Bank in
January2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the
High court if Judicature t Mumbai and the Reserve Bank of Indi in April 2002.

BUSINESS PROFILE

Products & Services

Personal Banking

 Deposits
 Loans
 Cards
 Investments
 Insurance
 Demat Services
 Wealth Management

NRI Banking

 Money Transfer
 Bank accounts
 Investments
 Property Solutions
 Insurance
 Loans

Business Banking

 Corporate Net Banking

 Cash Management
  Trade Services
 Frontline
 SME Services
 Online Taxes
 Custodial Service

Head Office

 ICICI Bank
 9th Floor, South Towers
 ICICI Towers
 Bandar Karla Complex
 Bandar (E)
 Mumbai.

Board of Directors

 Board Members

Mr. K. V. Kamath, Chairman

Mr. Sridhar Jaeger

Mr. Hemi R. Khurokhan

Mr. Lakshmi N. Mittal
Mr. Narendra Murkumbi
Dr. Anup K. Pujari
Mr. Anupam Purl
Mr. M. S. Ramachandran
Mr. M, K. Sharma
Mr. V. Sridhar
Mr. V. Prem Wasta
 Ms. Chandra D. Kocher
Mr. Sandeep Bakhsi
Mr. N. S. Kennan
Mr. K. Ram Kumar,
Mr. Son joy Chatterjee,
Executive Director

PRODUCTS

ICICI Bank provides a comprehensive range of deposit products to meet your needs. Along with
the ease of network branch ATMs, E-Channel services like Internet and mobile banking are
available. ICICI Bank offers banking right at your front door. Choose one of its deposit
packages, provide your information online, and a representative will get in touch with you to
start an account.

SAVING ACCOUNTS

Customers of ICICI Bank can open powerful savings accounts with a variety of practical features
and banking options. Customers may now bank whenever it's convenient for them without
having to worry about standing in line.

CURRENT ACCOUNTS

To support its commercial operations, every company needs effective banking facilities. The
ICICI bank provides high caliber services and a broad range of top tier goods. With the help of
its technological leadership and services, the bank can satisfy some of its customers' most
complex financial requirements. Businesspeople, joint stock companies, institutions, public
authorities, public corporations, etc. all require current accounts. Any company that does a lot of
banking transactions needs a current account.

SALARY ACCOUNTS

Both companies and employees can profit greatly from ICICI Bank salary accounts. You can
open one of our payroll accounts as an organization to facilitate the simple disbursement of
salaries and take advantage of a host of other perks. Your staff would appreciate the ease of
ICICI bank pay accounts. Having the largest network of ATMs at their command.

 Free 24-hour phone Banking

 Free Internet Banking.

FIXED DEPOSITS:

Fixed Deposits are a choice that enables you to grow your money and build wealth in a risk-free
manner. Customers of ICICI can choose from a variety of flexible fixed deposit options that are
designed to meet their individual needs and preferences. Customers can put money into a fixed
deposit offered by ICICI for as long as they like.

RECURRING DEPOSITES:

 ICICI Bank The best approach to invest little sums of money each month and have a sizable
account at maturity is via recurring deposits. High rates of recurrent invoicing and payments can
drain your finances, making major investments appear out of reach.

3. RESEARCH METHODOLOGY

3.1 Statement of the problem:

Performance and efficiency of banks are the key elements of financial system. The main
objective of the banking sector in India has been to increase efficiency and profitability of the
banks. The banking reforms created an opportunity to increase number of private and foreign
banks in the market.

This study attempts to apply different ratios on ICICI bank in order to study its efficiency and
solvency position.

3.2 Need for the Study:

financial analysis is a potent tool that aids in identifying an enterprise's operational and financial
strengths and weaknesses. When applying any sophisticated forecasting and planning techniques,
financial analysis is the first step in the planning process.

1. This analysis aids in understanding the company's financial Position.

2. This study offers Possible Solution to Overcome working capital issue.

3.3 Objectives of the Study:

1. To analyze the financial performance of ICICI Bank.

2. To find out the profit and loss account as well as balance sheet of the bank.
3. To formulate and analyze the Ratios of the Bank.
4. To analyze the financial position of the Bank.

3.4 Scope of the Study:

1. An accurate picture of ICICI Bank's financial situation can be obtained through financial
analysis.

2. It is possible to keep a corporation with assets that outweigh the liabilities by

maintained financial performance to numerous lenders and creditors.

3.5 Sources of the Data (Data Collection):

This project report is based on secondary data. Secondary data is collected from through
different sources like;

1. Journals
2. Magazines and company websites
3. Annual reports of company
4. Internet sources.

3.6 Tools for analysis:

The study on financial analysis of ICICI Bank tools user for this analysis are;

1. Ratios.
 Current Ratio
 Quick Ratio
 Cash Ratio
 Gross Profit Ratio
  Net Profit Turnover Ratio
 Operating Profit Ratio
 Debt Ratio
 Debt Equity Ratio
 Interest Coverage Ratio
 Proprietary Ratio
 Working Capital Turnover Ratio
 Total Assets Turnover Ratio
 Debtors Turnover Ratio
 Fixed Assets Turnover Ratio

3.7 Limitations:

1. The analysis and interpretation are based on secondary information from ICICI Bank's
publicly available annual reports for the study period.

2. The investigation has been constrained for a period of 5 years due to the restricted time at
hand.

3. Ratios alone may not fully depict the company's favorable or unfavorable financial situation.

4. A thorough picture of the company's operations cannot be provided by a study of financial

performance; it can only be used to learn about the financial health of the business.
 4. DATA ANALYSIS AND INTERPRETATION

4.1. Liquidity Ratios

1. Current Ratio:
Current Assets
Current Ratio=
Current Liabilities
Table No: 4.1
Table show current ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Current Assets Current Liabilities Current Ratio

2017-18 155896.38 30196.40 5.16
2018-19 162148.45 37851.46 4.28
2019-20 195133.41 47994.99 4.06
2020-21 206539.46 58770.37 3.51
2021-22 232662.48 68982.80 3.37
 Graph No: 4.1
Graph show current ratio of ICICI Bank
from the year 2017-18 to 2021-22
6

5.16
5
4.28
Current Ratio

4.06
4
3.51
3.37

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

Current Ratio useful to measures the firms short term solvency. The Current ratio standard
norm is 2:1, during the period 2017-18 to 2021-22 the Current ratio of the company is 5.16, 4.28,
4.06, 3.51, and 3.37. current ratio is decresing year by year is 2017-18 is 5.16 and 2021-22 is
3.37.

2. Quick Ratio:

Quick Assets
Quick Ratio=
Current Liabilities

Table: 4.2
Table show Quick Ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Quick Assets Current Liabilities Quick Ratio

2017-18 84169.38 30196.40 2.78

2018-19 80296.23 37851.46 2.12

2019-20 119155.74 47994.99 2.48

2020-21 133128.25 58770.37 2.26

 2021-22 167822.36 68982.80 2.43

Graph No: 4.2

Graph show Quick Ratio of ICICI Bank
from the year 2017-18 to 2021-22
3 2.78
2.48 2.43
2.5 2.26
2.12
2
Quick Ratio

1.5

0.5

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

Quick Ratio is more penetrating test of the liquidity than the Current ratio. The Quick ratio
standard norm is 1:1. During the period 2017-18 to 2021-22 the Quick ratio is 2.78, 2.12, 2.48,
2.26 and 2.43. In the year 2017-18 Quick ratio is high in 2.78.

3. Cash Ratio:

Cash+ Marketable Securities

Cash Ratio =
Current Liabilities

Table: 4.3
Table show Cash Ratio of ICICI Bank
from the year 2017-18 to 2021-22
Cash +Marketable
Year Current Liabilities Cash Ratio
Securities
2017-18 33102.38 30196.40 1.09

2018-19 37858.01 37851.46 1.00

2019-20 35283.96 47994.99 0.73

2020-21 46031.19 58770.37 0.78

 2021-22 60120.82 68982.80 0.87

Graph: 4.3
Graph show the Cash Ratio of ICICI Bank
from the year 2017-18 to2021-22
1.2
1.09
1
1
0.87
0.78
0.8 0.73
Cash Ratio

0.6

0.4

0.2

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

The Standard norm of Cash ratio is 1.2. During the period 2017-18 to 2021-22 the cash ratio
is 1.09, 1.00, 0.73, 0.78 and 0.87. The Cash ratio is decreased year by year 2017-18 to 2021-22.

B. Profitable Ratio

1. Gross profit Ratio:

Gross Profit
Gross Profit Ratio= X 100
Net Sales

Table No: 4.4

Table show Gross Profit Ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Gross Profit Sales Gross Profit Ratio

2017-18 17419.63 54965.89 31.69

2018-19 14512.16 63401.19 22.88

2019-20 16448.62 74778.32 21.99

 2020-21 18968.53 79118.27 23.97

2021-22 18517.53 86374.55 21.43

Graph No: 4.4

Graph show Gross Profit Ratio of ICICI Bank
from the year 2017-18 to 2021-22
35 31.69
Gross Profit Ratio

30
25 22.88 23.97
21.99 21.43
20
15
10
5
0
1 2 3 4 5

Year

Interpretation:

The Gross profit ratio indicates the relationship of gross profit and sales. During the year
gross profit are 31.69, 22.88, 21.99, 23.97, 21.43. Gross profit is decreasing year by year. In the
year 2020-21 gross profit is increasing in 23.97.

2. Net Profit Ratio:

Net Profit
Net Profit Ratio= X 100
Net Sales

Table No: 4.5

Table show Net Profit Ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Net Profit Net Sales Net Profit Ratio

2017-18 6777.42 54965.89 12.33

2018-19 3363.30 63401.19 5.30

2019-20 7930.81 74798.32 10.60

 2020-21 16192.68 79118.27 20.46

2021-22 23339.49 86374.55 27.02

Graph No: 4.5

Graph show the Net Profit Ratio of ICICI Bank
from the year 2017-18 to 2021-22
30
27.02
25
20.46
20
Net Profit Ratio

15 12.33
10.6
10
5.3
5

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2018-19 to 2021-22 the net profit ratio is high in the year 2021-22. The
year 2021-22 ICICI Bank have a more profits is 27.02. Net profit ratio in the year 2017-18 to
2021-22 is 12.33, 5.30, 10.60, 20.46, and 27.02.

3. Operating Profit Ratio:

Operating Profit
Operating Profit Ratio= X 100
Net Sales

Table No: 4.6

Table show Operating Profit Ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Operating Profit Net Sales Operating Profit Ratio

2017-18 24741 54965.89 45.01

2018-19 23437 63401.19 36.96

 2019-20 28102 74798.32 37.57

2020-21 36410 79118.27 46.01

2021-22 39250 86374.55 45.44

Graph No: 4.6

Graph show the Operating Profit Ratio of ICICI Bank
from the year 2017-18 to 2021-22
50 46.01
45.01 45.44
45
40 36.96 37.57
35
30
Operating Ratio

25
20
15
10
5
0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:
During the Year 2017-18 to 2021-22 the operating profit ratio is 45.01, 36.96, 37.57,
46.01 and 45.44. Operating profit in increasing high in the year 2020-21 is 46.01 and
decreased in the year 2018-19 is 36.96.

4. Return on Capital Employed Ratio:

EBIT
ROCE=
Capital Employed

Table No:4.7
Table show Return on Capital Employed of ICICI Bank
from the year 2017-18 to 2021-22

Year EBIT Capital Employed ROCE Ratio

2017-18 60947.69 1342314.94 0.045

 2018-19 65815.38 117166231 0.056

2019-20 77745.76 1050370.16 0.074

2020-21 80922.50 926607.69 0.087

2021-22 89620.49 848992.76 0.105

Graph No:4.7
Graph show the ROCE Ratio of ICICI Bank
from the year 2017-18 to 2021-22
0.12
0.105
0.1
0.087
0.08 0.074
ROCE Ratio

0.06 0.056
0.045
0.04

0.02

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2017-18 to 2021-22 the Return on Capital Employed Ratio of the company
is 0.045, 0.056, 0.074, 0.087 and 0.105. Return on Capital Employed Ratio is High in the year
2021-22 is 0.105. lowest in the year 2017-18 is 0.045.

C. Leverage Ratios
1. Debt Ratio:

Total Debts
Debt Ratio=
Total Assets

Table No: 4.8

Table Show Debt Ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year Total Debts Total Assets Debt Ratio

 2017-18 879189.16 879189.16 1.00

2018-19 964459.15 964459.15 1.00

2019-20 1098365.15 1098365.15 1.00

2020-21 1230432.68 1230432.68 1.00

2021-22 1411297.68 1411297.68 1.00

Graph No: 4.7

Graph show the Debt Ratio of ICICI Bank
from the year 2017-18 to 2021-22
1.2
1 1 1 1 1
1

0.8
Debt Ratio

0.6

0.4

0.2

0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

The debt ratio in the period 2017-18 to 2021-22 is 1.0 in the year 2018-19, 2020, 2021, 2022
the debt ratio is 1.00.

2. Debt- Equity Ratio:

Total Debt
Debt Equity Ratio=
Shareholders Equity

Table No: 4.9

Table shoe Debt- Equity Ratio of ICICI Bank
from the year 2017-18 to 2021-22
Share Holders
Year Total Debt Debt Equity Ratio
Equity
 2017-18 879189.16 105158.94 8.36

2018-19 964459.15 108368.04 8.89

2019-20 1098365.15 116504.41 9.42

2020-21 1230432.68 147509.19 8.34

2021-22 1411297.68 170511.97 8.27

Graph No: 4.9

Graph show the Debt Equity Ratio of ICICI Bank
from the year 2017-18 to 2021-22

9.6 9.42
Debt Equity Ratio

9.4
9.2
9 8.89
8.8
8.6
8.36 8.34
8.4 8.27
8.2
8
7.8
7.6
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2017-18 to 2021-22. The debt equity ratio is 8.36, 8.89, 9.42, 8.34 and
8.27.in the year 2019-2020. The debt equity ratio is high in 9.42 and 2021-22 year the debt
equity ratio is low in 8.27.

3. Interest Coverage Ratio:

EBIT
Interest Coverage Ratio=
Interest

Table No: 4.10

Table show Interest Coverage Ratio of ICICI Bank
from the year 2017-18 to 2021-22

Year EBIT Interest Interest Coverage

 Ratio
2017-18 60947.69 40866.21 1.49

2018-19 65815.38 47942.62 1.37

2019-20 77745.76 57551.11 1.35

2020-21 80922.50 57288.81 1.41

2021-22 89620.49 63833.56 1.40

Graph No: 4.10

Graph show the Interest Coverage Ratio of ICICI Bank
from the year 2017-18 to 2021-22
1.55
Intereset Coverage Ratio

1.5 1.49

1.45
1.41 1.4
1.4
1.37
1.35
1.35

1.3

1.25
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2017-18 to 2021-22 the interest coverage ratio is 1.49, 1.37, 1.35, 1.41 and
1.40. In the year 2017-18 having high interest coverage ratio is 1.49 and the year 2019-2020 is
having low interest coverage ratio is 1.35.

4. Proprietary Ratio:

Shareholders Fund
Proprietary Ratio=
Total Assets

Table No: 4.11

Table show Proprietary Ratio of ICICI Bank
for the Year 2017-18 to 2021-22
 Year Shareholders Fund Total Assets Proprietary Ratio

2017-18 105758.94 879189.16 0.12

2018-19 108368.04 964459.15 0.11

2019-20 116504.41 1098365.15 0.10

2020-21 147509.19 1230432.68 0.11

2021-22 170511.97 1411297.74 0.12

Graph No: 4.11

Graph show the Proprietary Ratio of ICICI Bank
from the year 2017-18 to 2021-22
0.125
Proprietary Ratio

0.12 0.12
0.12
0.115
0.11 0.11
0.11
0.105
0.1
0.1
0.095
0.09
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the year 2017-2018 and 2021-22 the proprietary ratio is 0.12, 0.11, 0.10, 0.11 and 0.12.
In the year 2017-2018 and 2021-22 is having a same proprietary ratio is 0.12 and the year 2018-
19 and 2020-21 is having a same proprietary ratio is 0.11. In the year 2019-20 having a low
proprietary ratio is 0.10.

D. Activity or Efficiency Ratio

1. Working Capital Ratio:

Nets Sales
WorkingCapital Ratio=
Working Capital
Table No: 4.12
 Table show Working Capital Ratio of ICICI Bank
from the year 2017-18 to 2021-22
Working Capital
Year Net Sales Working Capital
Ratio
2017-18 54965.89 125699.78 0.43

2018-19 63401.19 124296.99 0.51

2019-20 74798.32 147138.42 0.50

2020-21 79118.27 147769.09 0.53

2021-22 86374.55 163679.68 0.52

Graph No: 4.12

Graph show the Working Capital Ratio of ICICI Bank
from the year 2017-18 to 2021-22
0.6 0.53
Working Capital Ratio

0.51 0.5 0.52

0.5 0.43
0.4
0.3
0.2
0.1
0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

Working capital turnover ratio is useful to measure the operating efficiency of the company.
During the year 2017-18 to 2021-22 the working turnover ratio are 0.43, 0.51, 0.50, 0.53 and
0.52. The working capital turnover ratio is higher in the year 2020-21 is 0.53.

2. Total Assets Turnover Ratio:

Net Sales
Total Assets Turnover Ratio=
Total Assets

Table No: 4.13

Table show Total Assets Turnover Ratio of ICICI Bank
 for the year 2017-18 to 2021-22
Total Assets
Year Net Sales Total Assets
Turnover Ratio
2017-18 54965.89 879189.16 0.062

2018-19 63401.19 964459.15 0.065

2019-20 74798.32 1098365.15 0.068

2020-21 79118.27 1230432.21 0.064

2021-22 86374.45 1411297.74 0.061

Graph No: 4.13

Graph show the Total Assets Turnover Ratio of ICICI Bank
for the year 2017-18 to 2021-22
Total A ssets Turnover R atio

0.07
0.068
0.068
0.066 0.065
0.064
0.064
0.062
0.062 0.061
0.06
0.058
0.056
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:
During the year 2017-18 to 2021-22 the total assets turnover ratio is 0.062, 0.065, 0.068,
0.064 and 0.061. The 2019-20 is having a high total assets turnover ratio is 0.068 and in the year
2021-22 is having a low total assets turnover ratio is 0.061.

3. Debtors Turnover Ratio:

Net Sales
Debtors Turnover Ratio= X 100
Average Debtors

Table No: 4.14

Table show Debtors Turnover Ratio
 from the year 2017-18 to 2021-22
Debtors Turnover
Year Net Sales Average Debtors
Ratio
2017-18 54965.89 67789.40 0.81

2018-19 63401.19 79941.22 0.79

2019-20 74798.32 82232.83 0.90

2020-21 79118.27 99726.01 0.79

2021-22 86374.55 126141.99 0.68

Graph No: 4.14

Graph show the Debtors Turnover Ratio of ICICI Bank
from the year 2017-18 to 2021-22
1
0.9
Debtors Turnover Ratio

0.9
0.81 0.79 0.79
0.8
0.7 0.68

0.6
0.5
0.4
0.3
0.2
0.1
0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2018-19 to 2021-22 the debtor’s turnover ratio is 0.81, 0.79, 0.90, 0.79 and
0.68. The debtor’s turnover is higher in the year 2019-20 is 0.90 and debtor’s turnover ratio is
low in the year 2021-22 is 0.68.

4. Fixed Assets Turnover Ratio:

Net Sales
¿ AssetsTurnover Ratio= Assets ¿
Net ¿

Table No: 4.15

 Table show Fixed turnover Ratio of ICICI Bank
from the year 2017-18 to 2021-22
Fixed Assets
Year Net Sales Net Fixed Assets
Turnover Ratio
2017-18 54965.89 7903.51 6.95

2018-19 63401.19 7931.43 7.99

2019-20 74798.32 8410.29 8.89

2020-21 79118.27 8877.58 8.91

2021-22 86374.55 9373.82 9.21

Graph No: 4.15

Graph show the Fixed Assets Turnover Ratio of ICICI Bank
from the year 2017-18 to 2021-22
Fixed Asseta Turnover

10 8.89 8.91 9.21

9 7.99
8 6.95
7
6
Ratio

5
4
3
2
1
0
2017-18 2018-19 2019-20 2020-21 2021-22

Year

Interpretation:

During the period 2017-18 to 2021-22 the fixed assets turnover ratio is 6.95, 7.99, 8.89, 8.91
and 9.21. in the year 2017-18 the fixed assets turnover ratio is having low is 6.95 and the year
2021-22 is having a high fixed assets turnover ratio is 9.21.

5. FINDINGS, SUGGESTIONS & CONCLUSION

5.1. FINDINGS
1. In current ratio the ICICI Bank Ltd show the higher standard norm. The ICICI Bank Ltd
maintained current ratio is not satisfactory. In the year 2017-18 current ratio is 5.16 and
the year 2021-22 is 3.37.
2. ICICI Bank Ltd performance a low Quick ratio. ICICI Bank Ltd performed not well in
Quick ratio.
3. In a cash ratio the ICICI Bank Ltd performed very low and maintained consistency by the
decreasing their profits.
4. In ICICI Bank Ltd performed a good maintained in gross profit ratio. The ICICI Bank has
having highest gross profit ratio in the year 2017-18 is 31.69 and lowest gross profit ratio
in the year 2021-22 is 21.43.
5. In net profit ratio the ICICI Bank performed good and maintained consistency by
increasing their profits.
6. The ICICI Bank performed a good operating profit ratio and maintained good consistency
by increasing their profits.
7. In debt ratio the ICICI Bank Ltd performed equally to the al years and maintained same
assets and liabilities of the company.
8. In debt equity ratio the ICICI Bank Ltd performed poorly and low. Increased in the year
2019-20 is 9.42.
9. ICICI Bank Ltd performed very well in interest coverage ratio. In the year 2017-18
having a highest interest coverage ratio is 1.49.
10. The proprietary ratio of ICICI Bank Ltd performed very well. In the year 2017-18 to
2021-22 and 2018-19 to 2020-21 is 0.12 and 0.11.
11. The performance of Working capital turnover ratio of ICICI Bank Ltd is well. During the
year 2017-18 and 2021-22 the total assets turnover ratio is 0.062, 0.065, 0.068, 0.064 and
0.061 respectively and company performed well.
12. In ICICI Bank Ltd having a good performance in Debtors turnover ratio. The Debtors
turnover ratio highest in the year 2019-20 is 0.90 and Debtors turnover ratio is low in the
year 2021-22 is 0.68.
13. Fixed turnover ratio of ICICI Bank Ltd is performed low and not satisfactorily. The Bank
has pursued an approach of prioritizing capital conservation, liquidity management and
hazard containment given the difficult financial environment.
14. The Bank has also located strong emphasis on efficiency improvement and price
clarification.
15. The Bank continues to invest in expansion of its branch network to enhance its deposit
franchise and create an integrated distribution network for both asset and liability
products.

5.2. SUGGESTIONS
 Although the short-term liquidity function is quite quality as in line with discovered by
liquid ratio but the modern-day ratio is beneath the suitable ratio of 2:1. So the financial
institution has to make efforts to increase its modern assets to preserve a protection
margin and to maintain a better liquidity role.

 The profitability of the bank for the period under study is not satisfactory. Profits are
increasing but not with same pace as of the expenditure due to higher reliance on debt
capital in the form of borrowings and loans for financing capital structure. So, in order to
improve profitability, the bank should reduce its dependence on external equities for
meeting capital requirements. Consequently, the interest expenses will decline and profits
will increase which is good for the bank. Similarly nonproductive expenses should be
curtailed to improve profitability.

 Though the bank has been successful in increasing its deposits but to further improve
upon such situation it can introduced some new and attractive schemes for public. Such
schemes can be in the form of higher rate of interest and shorter maturity period for FD’s
etc.

 Bank should try to finance more and more projects. Financing will help it to earn higher
number of profits.
 Bank can also suppose for enhancing its day-to -day service to its customers. Such
provider can be stepped forward through presenting set off carrier and showing a mind-
set of co-operation to its customers. It will assist to offer a kind of confidence to the
public and build a higher public image.
  The bank should simplify the procedure of advances for quick disbursement.

 To achieve organizational success a proper independent working atmosphere should be

developed to achieve desired objective more effectively.

 Bank should adopt branch automation experiment to control the operational cost.

5.3. CONCLUSION
On the basis of various strategies carried out for the economic evaluation of ICICI Bank we can
arrive at a conclusion that the financial role and normal performance of the financial institutions
is fine. Though the earnings of the financial institutions have extended over the length however
not in the equal pace as of charges. But the financial institution has succeeded in retaining an
inexpensive profitability function.

The financial institution has succeeded in growing its proportion capital also which has elevated
around 50% within the remaining 5 years. Individuals are the main shareholders. The main
fulfillment of the bank has been a high-quality boom in its deposits, which has constantly been
its fundamental objective. Fixed and modern-day deposits have also proven an increasing
fashion.

Equity shareholders are also playing an increasing trend in the go back on their capital. Though
current assets and liabilities of the financial institutions isn’t always so nice but financial
institution has succeeded in keeping a strong solvency function over the years. As a way as the
ratio of external and inner fairness is worried, it’s miles clean that financial institutions have
been using greater amount of outside equity inside the form of loans and borrowings than
owner’s fairness. Bank’s investments also are showing an increasing trend. Due to boom in
advances, the interest acquired by using the bank from such advances is proving to be the
predominant source for the bank

BIBLIOGRAPHY
References:

1. Joseph Jelsy and Vetrivel (2012) “Time driven activity-based costing for spinning mills
to improve financial performance” Advances in management.

2. Reddy Sri Harsha K (2012) “Relative Performance of commercial banks in India using
Camel Approach”, Zenith International Journal of Multidisciplinary Research.

3. Singh A.B., Tendon P (2012): “A Study of Financial Performance: A Comparative

Analysis of SBI and ICICI Bank”, International Journal of Marketing, Financial Services
& Management Research.

4. Srinivas K. and Saroja L (2013). “Comparative Financial Performance of HDFC Bank

and ICICI Bank”, International Refereed Multidisciplinary Journal of Contemporary
Research.

5. Sanjay J. Bhayani (2006): “Performance of the New Indian Private Banks. A

Comparative Study, Banking Review.

6. Sangmi Mohi-ud-Din and Nazir Tabassum (2010), Analyzing Financial Performance of

commercial Banks in India.

7. B. Nimalathasan, A comparative study of financial performance of banking sector in

Bangladesh an application of CAMELS rating / Annals of University of Bucharest,
Economic and Administrative Series.

8. Prasad K.V.N., Ravinder G. And Reddy Maheshwara D (2011), A CAMEL Model

analysis of Public & Private Sector Banks in India, Journal on Banking financial services
& Insurance.
9. Chandani Arti, Mehta Mata (2013), Woman leadership in axis bank: a comparison of
woman and man leader using CAMEL model, international journal of research in
commerce, IT and Management.

10. Bhayani, S. J., and Gohil, D. C. (2007). Role of Transaction Cost in the Financial
Performance of Co-operative Banks. The Journal Accounting and Finance.

11. Bodla, B. S., and Verma, R. (2006). Evaluating Performance of Banks through CAMEL
Model: A Case Study of SBI and ICICI. The ICFAI Journal of Bank Management.

12. Pai, V. S. (2006). Trends in the Indian Banking Industry: Analyses of Inter-Regional
Trendsin Deposits and Credits. The ICFAI Journal of Management Research.

13. Prabakar Rajkumar k (2007) in his paper entitled “The Earning Performance of Private
Sector Banks During 2005-2006” The Journal Accounting and Finance.

14. Samad, A. (2007). Comparative Analysis of Domestic and Foreign Bank Operations in
Bangladesh. The Global Journal Finance and Economics.

15. Ram Pratap Sinha and Biswajit Chatterjee (2009) “Bank Ownership and Deposit
Mobilization: A Non- para-metric Approach” Prajnan Journal of Social and Management
Sciences.

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Parametric Model” The Journal Accounting and Finance.

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application of DEA” Decision Indian Institute of Management, Calcutta.

18. Abbas Q. Analysis of Pre and Post Merger and Acquisition Financial Performance of
Banks in Pakistan. Information Management and Business Review.
 19. Kumara M. Satyanarayana Comparative Study of Pre and Post Corporate Integration
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Web sites:

 www.icicibank.com

 www.moneycontrol.com

 www.money.Reddif.com

 www.wikipedia.org

 www.google.com

 www.scribd.com

 www.Managementparadise.com
 ANNEXURY
BALANCE SHEET OF ICICI BANK LTD
BALANCE
SHEET OF ICICI 2022-21 2021-20 2020-19 2019-18 2018-17
BANK
EQUITIES AND
LIABILTIES
SHAREHOLDERS
FUND
Equity Share Capital 1656.38 1383.41 1294.76 1289.46 1285.81
TOTAL SHARE
1656.38 1383.41 1294.76 1289.46 1285.51
CAPTAL
Revaluation Reserve 0.00 3093.59 3114.87 3044.51 3003.19

Reserve and Surplus 168855.59 143029.08 112091.29 104029.40 100864.37

Total Reserves and
168855.59 146122.67 115206.16 107073.91 103867.56
Surplus
TOTAL
SHAREHOLDERS 170511.97 147509.19 116504.41 108368.04 105158.94
FUNDS
Deposits 1064571.61 932522.16 770968.99 652919.67 560975.21

Borrowings 107231.36 91630.96 162896.76 165319.97 182858.62

Other Liabilities and
68982.80 58770.37 47994.99 37851.46 30196.40
Provisions
TOTAL CAPITAL
AND 1411297.74 1230432.68 1098365.15 964459.15 879189.16
LIABILITIES
ASSETS
Cash and Balances
with Reserve Bank 60120.82 46031.19 35283.96 37858.01 33102.38
of India
Balances with Banks
Money at Call and 107701.54 87097.06 83871.78 42438.27 51067.00
Short Notice
Investments 310241.00 281286.54 249531.48 207732.68 202994.18

Advances 859020.44 733729.09 645289.97 586646.58 512395.29

Fixed Assets 9373.82 8877.58 8410.29 7931.43 7903.51

Other Assets 64840.12 73411.21 75977.67 81852.17 71726.80

 TOTAL ASSETS 1411297.74 1230432.68 1098365.15 964459.15 879189.16

PROFIT &LOSS ACCOUNT OF ICICI BANK

PROFIT &LOSS
ACCOUNT OF 2022-21 2021-20 2020-19 2019-18 2018-17
ICICI BANK
INCOME
Interest/Discount on
63833.56 57288.81 57551.11 47942.62 40866.211
Advances/ Bills
Income from
16409.27 16539.78 14673.21 12796.88 11568.17
Investments
Interest on Balance
with RBI and Other 1560.83 1631.91 682.15 736.09 663.38
Inter-Bank funds
Others 4570.89 3657.77 1891.85 1925.60 1868.14
TOTAL INTEREST
86374.55 79118.27 74798.32 63401.19 54965.89
EARNED
Other Income 18517.53 18968.53 16448.62 14512.16 17419.63

TOTAL INCOME 104892.08 98086.80 91246.94 77913.36 72385.52

EXPENDITURE

Interest Expended 38908.45 40128.84 41531.25 36386.40 31940.05

Payments to and
Provisions for 9672.75 8091.78 8271.24 6808.24 5913.95
Employees
Depreciation 0.00 1058.40 947.12 776.91 780.74

Operating Expenses 17060.57 12397.26 12394.63 10503.91 9009.25

TOTAL
OPERATING 26733.32 21560.83 21614.41 18089.06 15730.85
EXPENSES
Provisions Towards
7269.40 4665.66 3746.03 3360.60 2661.85
Income Tax
Provisions Towards
0.00 -675.62 2371.20 -2947.14 -2004.72
Deferred Tax
Other Provisions and
8641.42 16214.40 14053.23 19661.14 17306.98
Contingencies
TOTAL
PROISIONS AND 15910.82 20204.44 20170.46 20074.60 17964.11
CONTINGENCIES
TOTAL
81552.59 81894.11 83316.13 74550.05 65608.10
EXPENDITURE
NET PROFIT/
LOSS FOR THE 23339.49 16192.68 7930.81 3363.30 6777.42
YEAR
NET PROFIT/LOSS
AFTER EI &PRIOR 23339.49 16192.68 7930.81 3363.30 6777.42
YEAR TIMES
Profit/Loss Brought
0.00 21327.15 17879.57 18495.26 18744.94
Forward
TOTAL PROFIT/
LOSS AVAILABLE
0.00 37520.15 25810.38 21858.56 25522.36
FOR
APPROPRIATIONS