RATIO ANALYSIS OF

ICICI BANK & SBI BANK

Presented to: Prof. Mustafa Sapatwala

 GROUP MEMBERS
 Shivani Podwal ()

 Sultan Khan ()

 Umair ()

 Matsyagandha Tawale()
 OVERVIEW OF BANKING
 What is a bank?
A bank is a financial institution where you can deposit your
money. Banks provide a system for easily transferring money
from one person or business to another. Using banks and the
many services they offer saves us an incredible amount of
time, and ensures that our funds "pass hands" in a legal and
structured manner.

 What is banking?
Engaging in the business of keeping money for savings and
checking accounts or for exchange or for issuing loans and
credit etc.
 ICICI BANK
 ICICI Bank is India's second-largest bank.
 The Bank has a network of 2,528 branches and
6,000 ATMs in India, and has a presence in 19
countries, including India. 
 It has the total assets of Rs. 3,634.00 billion
(US$ 81 billion) as on March 31, 2010.
 and profit after tax Rs. 40.25 billion (US$ 896
million) for the year ended March 31, 2010.
 STATE BANK OF INDIA BANK
• The State Bank of India is India's largest
commercial bank.
• The bank traces its origin to the first decade of
the 19th century. Later on, it was merged with
the Imperial Bank. In the year 1955.
•  SBI has capital of $7.9 billion.
• SBI's consolidated pre-tax profit is $1.9 billion.
 Ratio Analysis
It’s a tool which enables the banker or lender to
arrive at the following factors :
 Liquidity position
 Profitability
 Solvency
 Financial Stability
 Quality of the Management
 Safety & Security of the loans & advances to be
or already been provided
 CLASSIFICATION OF RATIOS

SOLVENCY PROFITABILITY ACTIVITY EARNINGS

• GROSS PROFIT RATIO

SHORT-TERM LONG TERM
• NET PROFIT RATIO
• EXPENSES RATIO
• OPERATING PROFIT
 CURRENT RATIO
 LIQUIDITY • RETURN ON CAPITAL •DIVIDEND
 CASH POSITION EMPLOYED RATIO RATIO
 STOCK RATIO •EARNINGS PER
 DEBTORS SHARE
VELOCITY • Proprietors ratio •CAPITAL TURNOVER •PRICE
CREDITORS •Debt-equity ratio •CREDITORS EARNINGS
VELOCITY • Leverage ratio TURNOVER RATIO
• Security ratio •DEBTORS TURNOVER •PAY-OUT RATIO
•STOCK TURNOVER
 RATIO ANALYSIS

 Net Profit Ratio: Net Profit / Net Sales *100

Essentially the net profit ratio tells us about how the company's profits
relate to their sales. 

 Price Earnings (P/E) Ratio = Market Price Per Share / Earnings Per Share
Higher the ratio, secure is the investment as it reflects growth prospects,
risk characteristics, shareholders orientation, corporate image and degree
of liquidity of the shares.

 Return on investment(ROI) = EBIT/ capital employed *100

Higher the ratio indicates better utilization of funds.
 RATIO ANALYSIS

Ratios Sbi icici

Mar’10 Mar’09 Mar’08 Mar’10 Mar’09 Mar’08
Net profit 10.54 12.03 11.65 12.17 9.74 10.51
margin

Op 2.38 2.06 2.16 2.59 2.6 2.76

exp/total
funds
Asset 0.09 0.09 0.09 0.09 0.1 0.11
turnover
 COMMENTS
 Operating margins are far higher for SBI, with operating profits being
20.02 per cent of total income, compared with 11.68 per cent for ICICI
Bank.
 SBI’s and “other operating expenses” are only 5.29 per cent of total
income for SBI, compared to 12.47 per cent for ICICI Bank.

 ICICI Bank is also ahead in “other income”, which was 15.44 per cent of
total income, compared to 12.07 per cent for SBI. 
STOCK VALUE
STATE BANK OF INDIA ICICI BANK

Computed on last 15 days trading figure

 CAPITAL ADEQUACY RATIO

The RBI has set the minimum capital adequacy ratio at 9% for all banks.
 2008
90

80

70

60

50

40

30

20

10

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 BIBLIOGRAPHY
• http://www.rediff.com/money/2006/sep/21guest.htm

• http://
money.rediff.com/money/jsp/compare_chart.jsp?codes=1403
0001a14030056

• BUSINESS STANDARD
THANK YOU