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PROJECT REPORTON

“FINANCIAL ANALYSIS”OF

 ICICI Bank 

Submitted to H.P university, ShimlaIn the partial fulfillment of 

Award of the degree of Bachelor of business administration

Submitted by:  Under theGuidance of:

GAURAV NARANG MR. ANKUR MAHAJAN

Lecturer, B.B.A,

University Roll no. 4329 Govt. college, Dharmshala.

Dept. of business administrationGovt. post graduate college, Dharmshala(H.P)

2007-10

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CERTIFICATION LETTER

  Govt. College,Dharmshala

TO WHOM IT MAY CONCERN

This is to certify that the Project Report entitled“FINANCIAL ANALYSIS OF ICICI Bank”has been completed by: GAURAV NARANG” under my supervision. To the best of my knowledge, this is his own work and he has notsubmitted the same elsewhere for the award of any other degree or diploma.

I approve it for submission in the partial fulfillment of the requirement for the degree of Bachelor of Business Administration.

DateMr.Ankur Mahajan(Project Guide)

Place Lecturer B.B.A,Govt.College,Dharmshala

ACKNOWLEDGEMENT

 No task is single man’s effort .Any job in this world however trivial or tough cannot beaccomplished without the assistance of others. An assignment puts the knowledge andexperience of an individual to litmus test. There is always a sense of gratitude that onelikes to express towards the persons who helped to change an effort in a success. Theopportunity to express my indebtness to people who have helped me to accomplish thistask.

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I deem it a proud privilege to extend my greatest sense of gratitude to my Project GuideMR. ANKUR MAHAJAN (lecturer B.B.A) for the keen interest, inspiring guidance,continuous encouragement, valuable suggestions and constructive criticism throughoutthe pursuance of this report.

I am thankful to Coordinator sir DR. UTTAM CHAND for giving me the opportunity toundertake the study. I am highly indebted to MR. DINESH JAMWAL (PROF.

REGIONAL CENTRE,H.P.U,SHIMLA) for sparing time from their busy schedule for  providing me with their able guidance at the time of need and helping me to achieve theultimate goal of the study. I would also like to thank  MR. RAJ (Branch Manager,

ICICI Bank, Dharmshala) for their valuable support in helping me to gain thisopportunity of being associated with an organization of such esteem.

Last but not the least, it would be unfair if I don’t express my indebtness to my parentsand all my friends for their active cooperation which was of great help during the courseof my training project.

PREFACE

In any organization, the two important financial statements are the Balance Sheet andProfit & Loss Account of the business. Balance Sheet is a statement of financial positionof an enterprise at a particular point of time. Profit & Loss account shows the net profit or net loss of a company for a specified period of time. When these statements of the lastfew year of any organization are studied and analyzed, significant conclusions may be

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arrived regarding the changes in the financial position, the important policies followedand trends in profit and loss etc. Analysis and interpretation of financial statement hasnow become an important technique of credit appraisal. The investors, financial experts,management executives and the bankers all analyze these statements. Though the basictechnique of appraisal remains the same in all the cases but the approach and the

emphasis in the analysis vary. A banker interprets the financial statement so as toevaluate the financial soundness and stability, the liquidity position and the profitabilityor the earning capacity of borrowing concern. Analysis of financial statements isnecessary because it helps in depicting the financial position on the basis of past andcurrent records. Analysis of financial statements helps in making the future decisions andstrategies. Therefore it is very necessary for every organization whether it is a financial or manufacturing, to make financial statement and to analyze it.

Table of contentChapterno.

PARTICULARS Page no.

Acknowledgement 3

Preface 4

1. Introduction Of Bankinga. Introduction of banking…………………. b. History of banking in India………………c. Banks in India……………………………d. Fact files of banks in India………………e. Indian banking industry………………….

6-1878111718

2. Company’s Profilea. Introduction to ICICI Bank…………

19-5521

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 b. ICICI Bank today……………………c. Business profile……………………...d. Board of directors……………………e. Board committee…………………….f. Business objective……………………g. Technology used in ICICI Bank……..

h. Products and services………………...i. Awards and recognition………………

272829303132

3454

3. Research Methodologya. Objective of study…………………… b. Importance of study………………….c. Meaning of research…………………d. Research problem……………………e. Research design……………………...f. Data collection method………………g. Analysis and interpretation of data…..h. Limitation of study…………………..

56-625858595960616262

4. Financial Analysisa. Introduction of the topic………………. b. Method/Tools of financial analysis…….c. Balance sheet of ICICI Bank…..d. Profit and Loss Account of ICICI

Bank……………………………..e. Financial statement analysis……………

1) Comparative financialstatement……………………….

2) Trendanalysis…………………….

3) Ratioanalysis……………………..

63-92646773

7576

76

79

80

5. Findings ,Suggestions And

Conclusion……………………….

93-98

6. Bibliography………………………………………… 99-100

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Chapter 1

INTRODUCTION OF BANKING

INTRODUCTION OF BANKING

Definition Of Bank:

Banking Means "Accepting Deposits for the purpose of lending or Investment of depositsof money from the public, repayable on demand or otherwise and withdraw by cheque,draft or otherwise."

-Banking Companies (Regulation) Act,1949

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ORIGIN OF THE WORD “ BANK” :- 

The origin of the word bank is shrouded in mystery. According to one view point theItalian business house carrying on crude from of banking were called banchi bancheri"According to another viewpoint banking is derived from German word "Branck" which

mean heap or mound. In England, the issue of paper money by the government wasreferred to as a raising a bank.

ORIGIN OF BANKING :

Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the benefit of money as a medium of exchange, the importance of bankingwas developed as it provides the safer place to store the money. This safe place ultimatelyevolved in to financial institutions that accepts deposits and make loans i.e., moderncommercial banks.

Banking system in India

Without a sound and effective banking system in India it cannot have a healthyeconomy.The banking system of India should not only be hassle free but it should be ableto meet new challenges posed by the technology and any other external and internalfactors.For the past three decades India's banking system has several outstanding achievements toits credit. The most striking is its extensive reach. It is no longer confined to onlymetropolitans or cosmopolitans in India. In fact, Indian banking system has reached evento the remote corners of the country. This is one of the main reasons of India's growth process.

HISTORY OF BANKING IN INDIA

Banking in India has its origin as early or Vedic period. It is believed that the transitionsfrom many lending to banking must have occurred even before Manu, the great Hindufurriest, who has devoted a section of his work to deposit and advances and laid downrules relating to the rate of interest. During the mogul period, the indigenous banker  played a very important role in lending money and financing foreign trade and commerce.

During the days of the East India Company it was the turn of agency house to carry onthe banking business. The General Bank of India was the first joint stock bank to beestablished in the year 1786. The other which followed was the Bank of Hindustan andBengal Bank. The Bank of Hindustan is reported to have continued till 1906. While other two failed in the meantime. In the first half of the 19th century the East India Company

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established there banks, The bank of Bengal in 1809, the Bank of Bombay in 1840 andthe Bank of Bombay in1843. These three banks also known as the Presidency banks werethe independent units and functioned well. These three banks were amalgamated in 1920and new bank, the Imperial 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 ImperialBank of India was taken over by the newly constituted SBI. The Reserve Bank of India(RBI) 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 controls all the other  banks in the country.

In the wake of Swadeshi Movement, number of banks with the Indian management wereestablished in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country werenationalized and on 15th April 1980, 6 more commercial private sector banks were takenover by the government.

The first bank in India, though conservative, was established in 1786. From 1786 tilltoday,the journey of Indian Banking System can be segregated into three distinct phases.They areas mentioned below:

Early phase from 1786 to 1969 of Indian Banks

 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

 New phase of Indian Banking System with the advent of Indian Financial &

Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II andPhase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustanand 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 PresidencyBanks.

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

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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 and1913, 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.

During the first phase the growth was very slow and banks also experienced periodicfailures between 1913 and 1948. There were approximately 1100 banks, mostly small. Tostreamline the functioning and activities of commercial banks, the Government of Indiacame up with The Banking Companies Act, 1949 which was later changed to BankingRegulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as theCentral Banking Authority.

During those day’s public has lesser confidence in the banks. As an aftermath depositmobilization was slow. Abreast of it the savings bank facility provided by the Postaldepartment was comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence.In1955, it nationalized Imperial Bank of India with extensive banking facilities on a largescale especially in rural and semi-urban areas. It formed State Bank of India to act as the  principal agent of RBI and to handle banking transactions of the Union and StateGovernments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th

July,1969, major process of nationalization was carried out. It was the effort of the thenPrime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the countrywas nationalized.Second phase of nationalization Indian Banking Sector Reform was carried out in 1980with seven more banks. This step brought 80% of the banking segment in India under Government ownership.

The following are the steps taken by the Government of India to RegulateBankingInstitutions 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 of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 crore.

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After the nationalization of banks, the branches of the public sector bank India rose toapproximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the sunshine of Government ownership gave the public implicit faith andimmense confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in itsreforms measure. In 1991, under the chairmanship of M Narasimham, a committee wasset 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 putto give a satisfactory service to customers. Phone banking and net banking is introduced.The entire system became more convenient and swift. Time is given more importancethan money.

The financial system of India has shown a great deal of resilience. It is sheltered from anycrisis triggered by any external macroeconomics shock as other East Asian Countriessuffered. 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 havelimited foreign exchange exposure.

  BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market.Few of them only work in rural sector while others in both rural as well as urban. Manyeven are only catering in cities. Some are of Indian origin and some are foreign players.

All these details and many more is discussed over here. The banks and its relation with

the customers, their mode of operation, the names of banks under different groups andother such useful information’s are talked about.

One more section has been taken note of is the upcoming foreign banks in India. The RBIhas shown certain interest to involve more of foreign banks than the existing one recently.This step has paved a way for few more foreign banks to start business in India.

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BANKING STRUCTURE IN INDIA

  SCHEDULED BANKS IN INDIA

(1)Scheduled Commercial Banks

 

Public Sector Banks Private Sector Banks Foreign Banks In

India

Regional Rural

Banks

(26) (25) (29) (95)

 NationalizedBank 

Other PublicSector Banks

(IDBI) SBI And Its

Associates

Old PrivateBanks

  New PrivateBanks

(2) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks

Public Sector Banks

Public sector banks are those banks which are owned by the Government. The Govt. runsthese Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks werealso nationalized. Therefore in 1980 the number of nationalized bank 20. At present thereare total 26 Public Sector Banks in India (As on 26-09-2009). Of these 19 are nationalised banks, 6(STATE BANK OF INDORE ALSO MERGED RECENTLY) belong to SBI &

associates group and 1 bank (IDBI Bank) is classified as other public sector bank.Welfare is their primary objective.

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Nationalised banks

• Allahabad Bank 

• Andhra Bank 

• Bank Of Baroda• Bank Of India

• Bank Of Maharastra

• Canara Bank 

• Central Bank Of India

• Corporation Bank 

• Dena Bank 

• Indian Bank 

• Indian Overseas Bank 

• Oriental Bank Of 

Commerce• Punjab & Sind Bank 

• Punjab National Bank 

• Syndicate Bank 

• UCO Bank 

• Union Bank Of India

• United Bank Of India

• Vijaya Bank 

Other PublicSector Banks

IDBI

(IndustrialDevelopmentBank Of India)Ltd.

SBI & its Associates

• State Bank of India

• State Bank of Hyderabad

• State Bank of Mysore

• State Bank of Patiala

• State Bank of Travancore

• State Bank of Bikaner AndJaipur 

(State Bank of Saurastra merged with SBI in theyear 2008 and State Bank of Indore In 2010)

Private Sector Banks

These banks are owned and run by the private sector. Various banks in the country such as ICICIBank, HDFC Bank etc. An individual has control over there banks in preparation to the share of the banks held by him.

Private banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India.

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The first Private Bank in India to receive an in principle approval from the Reserve Bank of Indiawas Housing Development Finance Corporation Limited, to set up a bank in the private sector  banks in India as part of the RBI's liberalization of the Indian Banking Industry. It wasincorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai andcommenced operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet another Private Bank of India was incorporated in the year 1930

Private sector banks have been subdivided into following 2 categories:-

Old Private Sector Banks

Bank of Rajasthan Ltd.Catholic Syrian Bank Ltd.City Union Bank Ltd.Dhanalakshmi Bank Ltd.Federal Bank Ltd.ING Vysya Bank Ltd.

Jammu and Kashmir Bank Ltd.Karnataka Bank Ltd.Karur Vysya Bank Ltd.Lakshmi Vilas Bank Ltd. Nainital Bank Ltd.Ratnakar Bank Ltd.SBI Commercial and International Bank 

Ltd.South Indian Bank Ltd.Tamilnad Mercantile Bank Ltd.United Western Bank Ltd.

New Private Sector Banks

• Bank of Punjab Ltd. (since mergedwith Centurian Bank)

• Centurian Bank of Punjab (sincemerged with HDFC Bank)

• Development Credit Bank Ltd.

• HDFC Bank Ltd.

• ICICI Bank Ltd.

• IndusInd Bank Ltd.

• Kotak Mahindra Bank Ltd.

• Axis Bank (earlier UTI Bank)

• Yes Bank Ltd.

Foreign Banks In India

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ABN AMRO Bank N.V.

Abu Dhabi CommercialBank Ltd

American Express Bank  Antwerp Diamond Bank 

Arab Bangladesh Bank 

Bank InternationalIndonesia

Bank of America

Bank of Bahrain & Kuwait

Bank of Ceylon

Bank of Nova Scotia

Bank of Tokyo Mitsubishi

UFJ Barclays Bank 

BNP Paribas

Calyon Bank 

ChinaTrust CommercialBank 

Citibank 

DBS Bank 

Deutsche Bank 

HSBC (Hongkong &Shanghai BankingCorporation)

JPMorgan Chase Bank  Krung Thai Bank 

Mashreq Bank 

Mizuho Corporate Bank 

Oman International Bank 

Shinhan Bank 

Société Générale

Sonali Bank 

Standard Chartered Bank 

State Bank of Mauritius

Cooperative banks in India

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The Cooperative bank is an important constituent of the Indian Financial System, judging by the role assigned to co operative, the expectations the co operative is supposed tofulfil, their number, and the number of offices the cooperative bank operate. Though theco operative movement originated in the West, but the importance of such banks haveassumed in India is rarely paralleled anywhere else in the world. The cooperative banks

in India plays an important role even today in rural financing. The businessess of cooperative bank in the urban areas also has increased phenomenally in recent years dueto the sharp increase in the number of primary co-operative banks.Co operative Banks in India are registered under the Co-operative Societies Act. Thecooperative bank is also regulated by the RBI. They are governed by the BankingRegulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

Rural banks in India

 Rural banking in India started since the establishment of banking sector in India. RuralBanks in those days mainly focussed upon the agro sector. Regional rural banks in India

 penetrated every corner of the country and extended a helping hand in the growth processof the country.

SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI isspread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to NorthEast. The total number of SBIs Regional Rural Banks in India branches is 2349 (16%).Till date in rural banking in India, there are 14,475 rural banks in the country of which2126 (91%) are located in remote rural areas.

Apart from SBI, there are other few banks which functions for the development of therural areas in India. Few of them are as follows.

Haryana State Cooperative Apex Bank Limited

The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK  plays a vital role in rural banking in the economy of Haryana State and has been providing aids and financing farmers, rural artisans, agricultural labourers, entrepreneurs,etc. in the state and giving service to its depositors.

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 andgives service for the promotion and development of rural sectors mainly agriculture,

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small scale industries, cottage and village industries, handicrafts. It also finance ruralcrafts and other allied rural economic activities to promote integrated rural development.It helps in securing rural prosperity and its connected matters.

Sindhanur Urban Souharda Co-operative Bank 

Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is thefirst of its kind in rural banks of India. The impressive story of its inception is interesting

and inspiring for all the youth of this country.

United Bank of India

United Bank of India (UBI) also plays an important role in regional rural banks. It hasexpanded its branch network in a big way to actively participate in the developmental of the rural and semi-urban areas in conformity with the objectives of nationalisation.

Syndicate Bank 

Syndicate Bank was firmly rooted in rural India as rural banking and have a clear visionof future India by understanding the grassroot realities. Its progress has been abreast of the phase of progressive banking in India especially in rural banks.

Fact Files of Banks in India

The first Bank in India to be given an ISO certification. Canara Bank  

The first Bank in Northern India to get ISO 9002 certification Punjab and Sind

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for their selected branches. Bank  

The first Indian Bank to have been started solely with Indian capital. Punjab NationalBank 

The first among the Private Sector Banks in Kerala to become ScheduledBank in 1946 under the RBI act.

South Indian Bank 

India’s oldest,largest and the most successful commercial bank offering thewidest possible rang of domestic,international and NRI products andservices,through its vast network in India and overseas.

State Bank of India

India’s second largest Private Sector Bank and is now the largest scheduled

commercial bank in India.

The Federal Bank 

Limited

Bank which started as Private Shareholders Banks,mostly Europeanshareholders.

Imperial Bank of India

The first Indian Bank to open a branch outside India in London in 1946 andthe first to open a branch in continental Europe at Paris in 1974

Bank of India,founded in 1906 inMumbai.

The oldest Public Sector Bank in India having branches all over India andserving the customers for the last 132 years.

Allahabad Bank 

The first Indian Commercial Bank which was wholly owned and managed byIndians.

Central Bank of India

INDIAN BANKING INDUSTRY 

The Indian banking market is growing at an astonishing rate, with Assets expected toreach US$1 trillion by 2010. An expanding economy, middleclass, and technologicalinnovations are all contributing to this growth.

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The country’s middle class accounts for over 320 million People. In correlation with thegrowth of the economy, rising income levels, increased standard of living, andaffordability of banking products are promising factors for continued expansion.

 

The Indian banking Industry is in the middle of an IT revolution, Focusing on theexpansion of retail and rural banking. Players are becoming increasingly customer -centric in their approach, which has resulted in innovative methods of offering new banking products and services. Banks are now realizing the importance of being a big playerand are beginning to focus their attention on mergers and acquisitions to takeadvantage of economies of scale and/or comply with Basel II regulation.“Indian bankingindustry assets are expected to reach US$1 trillion by 2010 and are poised to receive agreater infusion of foreign capital,” says Prathima Rajan, analyst in Celent's bankinggroup and author of the report. “The banking industry should focus on having a smallnumber of large players that can compete globally rather than having a large number of 

fragmented players.

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Chapter 2

COMPANY’S PROFILE

 

Type

 PrivateBSE &  NSE:ICICI, NYSE: IBN

Industry BankingInsuranceCapital Markets and alliedindustries

Founded 1955 (as Industrial Credit and 

 Investment Corporation of India)

Headquarters ICICI Bank Ltd.,ICICI Bank Towers,Bandra Kurla,Mumbai, India

Key people

K.V. Kamath,ChairmanChanda Kochhar , ManagingDirector & CEOSandeep Bakhshi, Deputy ManagingDirector  N.S. Kannan, Executive Director &CFOK. Ramkumar , Executive Director Sonjoy Chatterjee, ExecutiveDirector 

Product s Loans, Credit Cards, Savings,Investment vehicles, Insurance etc.

Revenue ▲ USD 15.06 billion

Total assets ▲ USD 120.61 billion (at March31, 2009.)

Website www.icicibank.com

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INTRODUCTION TO ICICI BANK 

History Of ICICI 1955: The Industrial Credit and Investment Corporation of India

Limited (ICICI) was incorporated at the initiative of World Bank,the Government of India and representatives of Indian industry,with the objective of creating a development financial institutionfor providing medium-term and long-term project financing toIndian businesses. Mr.A.Ramaswami Mudaliar elected as the first

Chairman of ICICI Limited. ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from theWorld Bank and other multi-lateral agencies, ICICI was alsoamong the first Indian companies to raise funds from internationalmarkets.

1956 : ICICI declared its first dividend of 3.5%.

1958 : Mr.G.L.Mehta appointed the second Chairman of ICICILtd.

1960 : ICICI building at 163, Backbay Reclamation, inaugurated.

1961 : The first West German loan of DM 5 million from

Kredianstalt obtained. 1967 : ICICI made its first debenture issue for Rs.6 crore, whichwas oversubscribed.

1969 : The first two regional offices in Calcutta and Madras set up.

1972 : The second entity in India to set up merchant bankingservices. : Mr. H. T. Parekh appointed the third Chairman of ICICI.

1977 : ICICI sponsored the formation of Housing DevelopmentFinance Corporation. Managed its first equity public issue.

1978 : Mr. James Raj appointed the fourth Chairman of ICICI.

1979 : Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.

1982 : 1982 : ICICI became the first ever Indian borrower to raise

European Currency Units. : ICICI commences leasing business. 1984 : Mr. S. Nadkarni appointed the sixth Chairman of ICICI.

1985 : Mr. N.Vaghul appointed the seventh Chairman andManaging Director of ICICI.

1986 : ICICI became the first Indian institution to receive ADBLoans. : ICICI, along with UTI, set up Credit Rating InformationServices of India Limited, India's first professional credit ratingagency. : ICICI promotes Shipping Credit and Investment

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Company of India Limited. : The Corporation made a public issueof Swiss Franc 75 million in Switzerland, the first public issue byany Indian entity in the Swiss Capital Market.

1987 : ICICI signed a loan agreement for Sterling Pound 10million with Commonwealth Development Corporation (CDC), the

first loan by CDC for financing projects in India. 1988 : Promoted TDICI - India's first venture capital company.

1993 : ICICI Securities and Finance Company Limited in jointventure with J. P. Morgan set up. : ICICI Asset ManagementCompany set up.

1994: ICICI established Banking Corporation as a bankingsubsidiary.formerly Industrial Credit and Investment Corporationof India. Later, ICICI Banking Corporation was renamed as 'ICICI

Bank Limited'. ICICI founded a separate legal entity, ICICI Bank,to undertake normal banking operations - taking deposits, creditcards, car loans etc.

1996 : ICICI Ltd became the first company in the Indian financialsector to raise GDR. : SCICI merged with ICICI Ltd. : Mr.K.V.Kamath appointed the Managing Director and CEO of ICICILtd

1997 : ICICI Ltd was the first intermediary to move away from

single prime rate to three-tier prime rates structure and introducedyield-curve based pricing. : The name The Industrial Credit andInvestment Corporation of India Ltd changed to ICICI Ltd. : ICICILtd announced the takeover of ITC Classic Finance.

1998 : Introduced the new logo symbolizing a common corporateidentity for the ICICI Group. : ICICI announced takeover of Anagram Finance.

1999 : ICICI launched retail finance - car loans, house loans andloans for consumer durables. : ICICI becomes the first IndianCompany to list on the NYSE through an issue of AmericanDepositary Shares.

2000 : ICICI Bank became the first commercial bank from India tolist its stock on NYSE.

2001: ICICI acquired Bank of Madura (est. 1943). Bank of Madurawas a Chettiar   bank, and had acquired Chettinad Mercantile Bank  (est. 1933) and Illanji Bank   (established 1904) in the 1960s. InOctober 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail

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finance subsidiaries, ICICI Personal Financial Services Limitedand ICICI Capital Services Limited, with ICICI Bank.

2002 : The merger was approved by shareholders of ICICI andICICI Bank in January 2002, by the High Court of Gujarat at

Ahmadabad in March 2002, and by the High Court of Judicature atMumbai and the Reserve Bank of India in April 2002. Consequentto the merger, the ICICI group's financing and banking Operations, both wholesale and retail, have been integrated in a single entity.At the same time, ICICI started its international expansion byopening representative offices in New York and London. In India,ICICI Bank bought the Shimla and Darjeeling branches thatStandard Chartered Bank had inherited when it acquired Grindlays Bank .

2003 : The first Integrated Currency Management Centre launchedin Pune. ; ICICI Bank announced the setting up of its first ever offshore branch in Singapore. ; The first offshore banking unit(OBU) at Seepz Special Economic Zone, Mumbai, launched. ;

ICICI Bank’s representative office inaugurated in Dubai. ;

Representative office set up in China. : ICICI Bank’s UK subsidiary launched. ; India’s first ever "Visa Mini Credit Card", a43% smaller credit card in dimensions launched. ; ICICI Bank subsidiary set up in Canada. ; Temasek Holdings acquired 5.2%stake in ICICI Bank. ; ICICI Bank became the market leader inretail credit in India. In the UK it established an alliance with

Lloyds TSB. It also opened an Offshore Banking Unit (OBU) inSingapore and representative offices in Dubai and Shanghai.

2004 : Max Money, a home loan product that offers the dual  benefit of higher eligibility and affordability to a customer,introduced. : Mobile banking service in India launched inassociation with Reliance Infocomm. : India’s first multi-brandedcredit card with HPCL and Airtel launched. : Kisan Loan Card andinnovative, low-cost ATMs in rural India launched. : ICICI Bank 

and CNBC TV 18 announced India’s first ever awards recognizingthe achievements of SMEs, a pioneering initiative to encourage thecontribution of Small and Medium Enterprises to the growth of Indian economy. : ICICI Bank opened its 500th branch in India. :

ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions(MFIs). The MFI would undertake the promotional role of identifying, training and promoting the micro-finance clients and

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ICICI Bank would finance the clients directly on therecommendation of the MFI. : ICICI Bank introduced 8-8 Bankingwherein all the branches of the Bank would remain open from8a.m. to 8 p.m. from Monday to Saturday. : ICICI Bank introducedthe concept of floating rate for home loans in India. At the same

time, ICICI opened a representative office in Bangladesh to tap theextensive trade between that country, India and South Africa.

2005 : First rural branch and ATM launched in Uttar Pradesh atDelpandarwa, Hardoi. ; "Free for Life" credit cards launchedwherein annual fees of all ICICI Bank Credit Cards were waivedoff. ; ICICI Bank and Visa jointly launched mChq – arevolutionary credit card on the mobile phone. ; Private BankingMasters 2005, a nationwide Golf tournament for high networth

clients of the private banking division launched. This event is thelargest domestic invitation amateur golf event conducted in India. ;

First Indian company to make a simultaneous equity offering of $1.8 billion in India, the United States and Japan. ; ICICI acquiredInvestitsionno-Kreditny Bank (IKB), a Russia bank with aboutUS$4mn in assets, head office in Balabanovo in the Kaluga region,and with a branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI established a branch in Dubai InternationalFinancial Centre and in Hong Kong.ICICI Bank became the largest bank in India in terms of its market capitalization. ; ICICI Bank  became the first private entity in India to offer a discount to retail

investors for its follow-up offer.

2006 : ICICI Bank became the first Indian bank to issue hybridTier-1 perpetual debt in the international markets. : ICICI Bank subsidiary set up in Russia. ; Introduced a new product - ‘NRIsmart save Deposits’ – a unique fixed deposit scheme for nonresident Indians. : Representative offices opened in Thailand,Indonesia and Malaysia. ; ICICI Bank UK opened a branch inAntwerp, in Belgium ; ICICI Bank became the largest retail player 

in the market to introduce a biometric enabled smart card thatallow banking transactions to be conducted on the field. A low-costsolution, this became an effective delivery option for ICICI Bank’smicro finance institution partners. ; Financial counseling centreDisha launched. Disha provides free credit counseling, financial planning and debt management services. ; Bhoomi puja conductedfor a regional hub in Hyderabad, Andhra Pradesh.

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2007 : ICICI Bank‘s USD 2 billion 3-tranche international bondoffering was the largest bond offering by an Indian bank. ; ICICIamalgamated Sangli Bank , which was headquartered in Sangli, in

Maharashtra State, and which had 158 branches in Maharashtraand another 31 in Karnataka State. Sangli Bank had been foundedin 1916 and was particularly strong in rural areas. With respect tothe international sphere, ICICI also received permission from thegovernment of Qatar to open a branch in Doha. Also, ICICI Bank Eurasia opened a second branch, this time in St. Petersburg. ;

ICICI Bank raised Rs 20,000 crore (approx $5 billion) from bothdomestic and international markets through a follow-on publicoffer. ; ICICI Bank’s GBP 350 million international bond offeringmarked the inaugural deal in the sterling market from an Indianissuer and also the largest deal in the sterling market from Asia. ;

Launched India’s first ever jewellery card in association with jewelry major Gitanjali Group. ; ICICI Bank became the first bank in India to launch a premium credit card -- The Visa SignatureCredit Card. ; Foundation stone laid for a regional hub inGandhinagar, Gujarat. ; Introduced SME Toolkit, an onlineresource centre, to help small and medium enterprises start, financeand grow their business. ; ICICI Bank signed a multi-tranche dualcurrency US$ 1.5 billion syndication loan agreement in Singapore.; ICICI Bank became the first private bank in India to offer bothfloating and fixed rate on car loans, commercial vehicles loans,construction equipment loans and professional equipment loans. ;

In a first of its kind, nation wide initiative to attract bright graduatestudents to pursue a career in banking, ICICI Bank launched the"Probationary Officer Programme". ;Launched Bank@homeservices for all savings and current a/c customers residing in India ;

ICICI Bank Eurasia LLC inaugurated its first branch at StPetersburg, Russia.

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2008 : ICICI Bank enters US The US Federal Reserve permittedICICI to convert its representative office in   New York  into a branch.; ICICI Bank enters Germany, opens its first branch in

Frankfurt ; ICICI Bank launched iMobile, a breakthroughinnovation in banking where practically all internet bankingtransactions can now be simply done on mobile phones. ; ICICIBank concluded India's largest ever securitization transaction of a  pool of retail loan assets aggregating to Rs. 48.96 billion(equivalent of USD 1.21 billion) in a multi-tranche issue backed byfour different asset categories. It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since the beginning of 2007. ; ICICI Bank launches ICICIACTIVE - Banking Interactive Service - along withDISHTV, which will allow viewers to see information about the

Bank's products and services and contact details on their DISHTVscreens. ; ICICI Bank and British Airways launch co-brandedcredit card, which is designed to earn accelerated reward points tothe card holders with every British Airways flight or by spendingon everyday purchases.

2009: ICICI Bank Board appoints Mr K. V. Kamath as non-executive Chairman and Ms Chanda Kochhar as ManagingDirector & CEO effective May 1, 2009, while the existing non-executive Chairman Mr N Vaghul retires after completing his termon April 30, 2009 ; ICICI bank ties up with BSNL Cell One for 

 bill payments, it will facilitate bill payment for BSNL Cell Oneusers through www.icicibank.com across all the 27 circles of BSNL. ; ICICI Bank Limited acting through its Hong KongBranch (ICICI Bank) signed an agreement on Export Credit Linetotaling up to US$100 million with the Japan Bank for International Cooperation (JBIC) which constitutes theinternational wing of Japan Finance Corporation. ; ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signeda loan agreement with the Export-Import Bank of China (ChinaExim) for USD 98 million under the Two- step Buyer Credit(Export Credit) arrangement. ICICI Bank is the first Indian Bank to

have entered into this arrangement with China Exim ; ICICI Bank with Singapore Airlines launched “ICICI Bank Singapore AirlinesVisa Platinum Credit Card”, the Card has exclusive privilegesespecially designed for the members. ; ICICI Bank announced anassociation with mChek, India’s leading mobile payment solutions provider, to facilitate mChek services to all ICICI Bank Debit andCredit Card customers. These are electronic cards issued to thecustomers with mChek application on their mobile phone. ; Ms

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Chanda Kochhar took charge as the Managing Director & CEO of ICICI Bank from May 1, 2009.

ICICI BANK  TODAY ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of 

India) is India's largest  private sector   bank by market capitalisation and second largestoverall in terms of assets. Trotal assets of Rs. 3,562.28 billion (US$ 77 billion) atDecember 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the ninemonths ended December 31, 2009. The Bank also has a network of 1,640+ branches (ason February 11, 2010) and about 4,721 ATMs in India and presence in 18 countries, aswell as some 24 million customers (at the end of July 2007). ICICI Bank offers a widerange of banking products and financial services to corporate and retail customersthrough a variety of delivery channels and specialised subsidiaries and affiliates in theareas of investment banking, life and non-life insurance, venture capital and asset

management. (These data are dynamic.) ICICI Bank is also the largest issuer of creditcards in India. ICICI Bank has got its equity shares listed on the stock exchanges atKolkata and Vadodara, Mumbai and the  National Stock Exchange of India Limited, andits ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in overseasmarkets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries,including an offshore unit in Mumbai. This includes wholly owned subsidiaries inCanada, Russia and the UK (the subsidiary through which the HiSAVE savings brand isoperated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai,  branches in Belgium, Hong Kong and Sri Lanka, and representative offices inBangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab

Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular.

ICICI reported a net profit of Rs. 3,758 crore (US$ 741 million) for FY2009. The bank'sCurrent and savings account (CASA) ratio increased to 28.7% at March 31, 2009 from26.1% at March 31, 2008. Increase of Rs. 5,286 crore in CASA deposits in quarter endedMarch 31,2009.ICICI Bank is one of the Big Four Banks of India with State Bank of India, Axis Bank  and HDFC Bank 

ICICI Bank Group

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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• FXOnline

• SME Services• Online Taxes

• Custodial Services

Head OfficeICICI Bank 9th Floor, South Towers

ICICI TowersBandra Kurla ComplexBandra (E)Mumbai.Phone: 91-022-653 7914Website: www.icicibank.com

Capital structure

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The Authorized Capital of ICICI Bank is 214.75 Crores. The Issued, Subscribed and Paid UpCapital is divided into 1113250642 equity shares @ Rs.10/- each.

Board of Directors

Board Members

  Mr. K. V. Kamath, Chairman....................................................

  Mr. Sridar Iyengar ....................................................

  Mr. Homi R. Khusrokhan....................................................

  Mr. Lakshmi N. Mittal................................................

  Mr. Narendra Murkumbi.................................................

  Dr. Anup K. Pujari.................................................

  Mr. Anupam Puri..................................................

  Mr. M.S. Ramachandran ..................................................

  Mr. M.K. Sharma

..................................................  Mr. V. Sridar   Prof. Marti G. Subrahmanyam

.........................................................  Mr. V. Prem Watsa

.........................................................  Ms. Chanda D. Kochhar,

Managing Director & CEO.........................................................

  Mr. Sandeep Bakhshi,Deputy Managing Director 

.........................................................  Mr. N. S. Kannan,

Executive Director & CFO.........................................................

  Mr. K. Ramkumar,Executive Director .........................................................

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Mr. Sonjoy Chatterjee,Executive Director 

Board committee

Audit Committee Board Governance Remuneration &

Nomination Committee

Mr. Sridar Iyengar, ChairmanMr. M. K. Sharma, Alternate ChairmanMr. Narendra MurkumbiMr. V. Sridar 

Mr. M. K. Sharma, ChairmanMr. K. V. KamathMr. Anupam PuriProf. Marti G. Subrahmanyam

Corporate Social Responsibility

Committee

Customer Service Committee

Mr. M. K. Sharma, ChairmanDr. Anup K. PujariMs. Chanda D. Kochhar 

Mr. K. V. Kamath, ChairmanMr. Narendra MurkumbiDr. Anup K. PujariMr. M. S. RamachandranMr. M.K. SharmaMs. Chanda D. Kochhar 

Credit Committee Fraud Monitoring Committee

Mr. K. V. Kamath, ChairmanMr. Narendra MurkumbiMr. M. S. Ramachandran Mr. M .K.SharmaMs. Chanda D. Kochhar 

Mr. M. K. Sharma, ChairmanMr. K. V. KamathMr. Narendra MurkumbiMs. Chanda D. Kochhar Mr. Sandeep Bakhshi

Risk Committee Share Transfer & Shareholders'/

Investors' Grievance Committee

Mr. K. V. Kamath, ChairmanMr. Sridar Iyengar 

Dr. Anup K. PujariProf. Marti G. SubrahmanyamMr. V. Prem WatsaMs. Chanda D. Kochhar 

Mr. M. K. Sharma, ChairmanMr. Narendra Murkumbi

Mr. N. S. Kannan

Committee of Executive Directors

Ms. Chanda D. Kochhar, ChairpersonMr. Sandeep BakhshiMr. N. S. KannanMr. K. Ramkumar 

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Mr. Sonjoy Chatterjee

BUSINESS OBJECTIVE

Vision

To be the leading provider of financial services in India and a major global bank.

Mission• We will leverage our people, technology, speed and financial capital to: be the

 banker of first choice for our customers by delivering high quality, world-classservice.

• Expand the frontiers of our business globally.

• Play a proactive role in the full realisation of India’s potential.

• Maintain a healthy financial profile and diversify our earnings across businessesand geographies.

• Maintain high standards of governance and ethics.

•Contribute positively to the various countries and markets in which we operate.

• Create value for our stakeholders.

 

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TECHNOLOGY Used In ICICI Bank 

ICICI use many type of advance technological software like Pinnacle 7.0 andPinnacle7.016.Among from this software ICICI bank uses the e-banking, core banking,mobile banking electronic display sy ICICI Bank was using Teradata for its data

warehouse. However, due to its proprietary hardware, the cost of procurement, upgradesand administration was soaring. The closed box architecture of Teradata imposedrestrictions on scalability. Secondly, querying and loading could not happensimultaneously. Queries could only be run during business hours because the loading of data had to take place during off business hours. This meant that the refresh rate of EDWwas delayed, so queries may not reflect the most current data. ICICI Bank was alsodependent on Teradata for support and other activities: The bank was completely tieddown to that solution.These issues compelled ICICI Bank to look for more efficient and flexible solutions. Thesolution would have to address not only current issues, but accommodate future growthexpectations and business requirements. ICICI Bank evaluated numerous data

warehousing solutions in the pursuit of solving its issues, and developed a shortlist of alternatives for its migration proof-of-concept: Sybase, SAS and Netezza. The primarycriteria for evaluation was the price-to-performance ratio where Sybase IQ emerged theclear winner. During this rigorous testing, Sybase IQ delivered faster results onindependent hardware and operating systems with minimum infrastructure. Commendingthe improvements achieved, Amit Sethi, Joint General Manager, ICICI bank says, "Whatimpressed us wasthat even with overall lower costs, we could achieve significantly better query performanceafter implementing the Sybase enterprise warehouse solution." ICICIInfotech today launched an enterprise resourceplanning (ERP) solution for the small andmedium enterprises.The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon

server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a15-user license.An ERP package helps a manufacturer or any other business implementing it to manageall the important parts in the company such as product planning, parts purchasing,maintaining inventory and interacting with suppliers and customers.ICICI Infotech officials told a press conference here today that Orion Advantage offered

a set of business practice solutions for industry segments such as engineering, autoancillary, pharmaceuticals, chemicals and IT distribution. Besides the cost advantage, the

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ERP package also came pre-configured. ICICI Infotech had mapped the processesspecific to each industry segment into the package.

Mr. Manoj Kunkalienkar, Executive Director and President, ICICI Infotech, said thatsmalland medium enterprises (SMEs) offered a good market and ICICI Infotech hoped to

 become a leading solution provider to this segment.

Mr. R.K. Kanthi, Deputy General Manager, ICICI Infotech, said there was no ERP packagefor the SMEs that bundled the server, database and operating system right now.That was the advantage ICICI Infotech offered to SMEs as Orion Advantage came  bundled and preconfigured. Besides the high cost of generic ERP packages, their implementation time as far as SMEs were concerned was also long. Orion Advantagecould be installed in 45 days.ICICI Infotech had signed up six customers so far for the package and hoped to garner a15 per cent market share of the SME segment, whose number in the country was

estimated at 2.30 lakh.Mr. K.S. Natarajan, Managing Director, Trident Pneumatics Pvt Ltd of Coimbatore, oneof the companies that had installed Orion Advantage, said that the company had triedthree other ERP packages, all of which had failed, before settling on Orion Advantage.

Mr Kunkalienkar said that ICICI Infotech planned to move the two development centersin Chennai into a single location and double the staff strength from 300 now in the nexttwo years.The Chennai centers were involved in research and development of Orion ERP solutionsand Premia, an insurance package.

We can see that the how technology gives the best results in the below diagram. There aredrastically changes seen in the use of Internet banking, in a year 2001 (2%) and in theyear 2008 (25%).These type of technology gives the freedom to retail customers.

Centralized Processing Units  Derived Economies Of Scale

 Electronic Straight through Processing   Reduced Transaction Cost 

 Data Warehousing,CRM   Improve Cost Efficiency,Cross Sell 

 Innovative Technology Application  Provide New Or Superior Products

The country’s middle class accounts for over 320 million people. In correlation withthegrowth of the economy, rising income levels, increased standard of living, andaffordability of banking products are promising factors for continued expansion.

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PRODUCTS AND SERVICES

PERSONAL BANKING

Loan Product Deposit Product Investment &Insurance

• Auto loan

•

Loan againstsecurity

• Loan against property

• Personal loan

• Credit card

• 2- wheeler loan

• Commercialvehicles finance

• Home loans

• Retail business

 banking• Tractor loan

• Working capitalfinance

• Construction

• Equipment finance

• Health care finance

• Education loan

• Gold loan

• Savings A/C

•

Current A/C• Fixed Deposits

• Demat A/C

• Safe DepositLockers

• Mutual Funds

•

Bonds• Knowledge Centre

• Insurance

• General And HealthInsurance

• Equity AndDerivatives

• Mudra Gold Bar 

Cards Payment

Services

Access To Bank 

• Credit Card

• Debit Card

• Prepaid Card

--------------------------------Forex services

•  Net Safe

• Merchant

• Prepaid Refill

• Bill Pay

• Visa Bill Pay

• InstaPay

•  Net Banking

• One View

• InstaAlert MobileBanking

• ATM

• Phone Banking

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--------------------------------

• Product AndServices

• Trade Services

• Forex Service

Branch Locater • RBI Guidelines

• Direct Pay

• VisaMoneyTransfers

• E-Monies ElectronicFunds Transfer 

• Online Payment Of Direct Tax

• Email Statements

• Branch Network 

WHOLESALE BANKING

Corporate Small andMediumEnterprises

Financial InstitutionsandTrusts

• Funded Services

•  Non FundedServices

• Value AddedServices

• Internet Banking

• Funded Services

•  Non FundedServices

• Specialized Services

• Value AddedServices

• Internet Banking

BANKS

• Clearing Sub-Membership

•  RTGS Sub-Membership

•  Fund Transfer 

•  ATM Tie- Ups

• Corporate Salary A/C 

• Tax Collection

Financial Institutions

Mutual Funds

Stock Brockers

Insurance Companies

Commodities Business

Trusts

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NRI SERVICES

Accounts & Deposits Remittances

• Rupee Saving A/C

• Rupee Current A/C

• Rupee Fixed Deposits• Foreign Currency Deposits

• Accounts For Returning Indians

•  North America

• Uk 

• Europe• South East Asia

• Middle East

• Africa

• Others

Quick Remit

India Link 

Check Lock Box

Telegraphic/ Wire Transfer

Fund Transfer Cheques/Dds/Tcs

Investment & Insurances

 

Loans

• Mutual Funds

• Insurance

• Private Banking

• Portfolio Investment Scheme

• Home Loans

• Loans Against Securities

• Loans Against Deposits

• Gold Card Credit

Payment Services Access To Bank  

•  Net Safe

• Bill Pay

• InstaPay

• DirectPay

• VisaMoney

• Online Donation

•  Net Banking

• One View

• InstaAlert

• ATM

• Phone Banking

• Email Statements

• Branch Networks

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PRODUCTS

ICICI Bank offers wide variety of Deposit Products to suit your requirements. Coupledwith convenience of networked branches/ ATMs and facility of E-channels like Internetand Mobile Banking, ICICI Bank brings banking at your doorstep. Select any of itsdeposit products and provide your details online and their representative will contact youfor Account Opening.

SAVING ACCOUNTS

ICICI Bank offers customers a power packed Savings Account with a hostof convenient features and banking channels to transact through. So nowcustomers can bank at their convenience, without the stress of waiting inqueues.

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 providesorganizations 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 citizensfrom 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,felexibility andattractive 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.

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• 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 -18years, brought to you by ICICI Bank to help the parents meetthe 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 theaccount 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 youtransfer to your child's account, you can even shop with him / her at Young Stars very ownshopping 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 linksto special zones designed to suit your child's area of interests and also impart knowledge on thecurrent events of the world.

Advantage woman savings accountThe ICICI Bank Advantage Woman Account enables today’sindependent women to enjoy hassle-free banking services.Besides the core ICICI Bank advantage, the Advantage WomanSavings Account is packed with special benefits for our womencustomers. Enjoy your present and plan for the future with ICICIBank’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:

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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 technologyleadership 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 Bu si ne ss ma n, Jo in t st oc k co mp an ie s,Insti tutions, Public authorit ies, public corporations etc. Any business that hasnumerous banking tranactions need a current account as i t

• Allows running account supporting unlimited withdrawals and deposits.

• Is meant for convenience and not to save money.

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 arewell taken care of, customers can access their accounts at over 500 networked branchesacross 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 corporates and itsemployees.

• The process of drawing cheques for salaries is replaced bysending a single ASCII fi le to the bank and the amount isdirectly credited into the employees 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 anorganization, you can opt for our Salary Accounts to enable easy disbursements of salaries andenjoy numerous other benefits too.With ICICI Bank Salary Accounts your employees will enjoythe 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 acheque/debit instruction, ecs, etc) for the total salary amount along with the salary details of thedesignated 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 thanone ways:-

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• 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 moneythus creating wealth in a safer and secure way.ICICI provides its customers with various kinds of Fixeddeposit 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 todeposit 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 onmaturity.

• Interest compounded quarterly.

•Additional interest rate of 0.5% for senior citizens.

Recurring Deposits:

ICICI Bank Recurring Deposits are an ideal way to investsmall amounts of money every month and end up with a largekitty on maturity.High recurring billing and recurring

payments can be a drain on your finances and hence largeinvestments may seem a plan away.

Recurring deposits aims to encourage savings without puttingany 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 returnthat are identical to the fixed deposit rates and most importantly no TDS is applicable in it .theminimum 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:

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A few Corporates stipulate to their new employees to provide Security Deposit to reduce attrition.ICICI Bank’s proposal for the employee is to keep theSecurity Deposit in the form of a Fixed Deposit (FD) with theBank. The employee cannot withdraw such FDs without theconsent of the company and the company has the right towithdraw the FD in the event of employee leaving the

organization before a certain stipulated period.

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 maximise your advantage. ICICI Bank’s Tax Saver FD is the perfectsolution for your investment needs.

EEFC Account

Indian exports have surged over the last decade owing to an unprecedented boom in sectors likesoftware, biotechnology, gems, jewellery, textiles etc. As a result of this, the volume of inwardremittances has also increased significantly. To shield the firms engaged in regular export andimport from the exchange rate fluctuations RBI has allowed parking of foreign currency byexporters 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 buytraveller’s cheques, foreign currency in cash and foreign currency demand draft for your expenses

overseas. If you are a frequent traveller, you may not want to go through the hassles of buyingforeign 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 ResidentForeign 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.

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.

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• 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 chequebook.• 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.

• Prefrential 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 relationshipmanager.

• Priority processing at ICICI Bank brancghes and customer care.• Free international titanium debit card with higher daily withdrawal and spend

limit.

• 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 TotalRelationship Value(TRV)of Rs. 5,00,000.

Family banking:

Superior product benefits of privilige banking,wealth management andglobal private client(GPC) available to all the members of your familywhile the required minimum balance can be maintained in any of theaccounts.

• 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

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ICICI Bank offers you a simple way to send money outside India. Our Outward Remittancefacilities make remitting money abroad quick, and reliable. ICICI Bank’s Outward Remittance isthe 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.

Advantage Deposit

Advantage Deposit is a combination of fixed deposit and mutual fund investment, offering youthe 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 SystematicInvestment 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 SYSTEMlaunched on May 1, 2009 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 kindin 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 oldage. The scheme will empower a subscriber to plan his own retirement and pension. It not onlywill help him save for life after retirement but also is a good investment tool as the returns aremarket-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 lastfew years. Individuals who opted for housing loans in the years gone

 by, are still servicing them at 17% to 21% per annum. Quite a priceto pay, since one can get a loan today for around 12% per annum. Insuch a case, you can opt for a balance transfer. Under this scheme,customers can replace their existing old high interest loan by acheaper (equal to applicable current rates) loan. ICICI Home Financewill not only finance the balance amount of outstanding loan but alsoyour prepayment charges to the old housing finance company.The result:

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• 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.Withminimum documentation you can now secure a loan for an amountup 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 theloan.

• A balance transfer facility available for those who want to retire any higher debt.

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

CAR LOAN

 

The NO. 1 financier for car loans in the country. Network of morethan 1500 channel partners in over 780 locations. Tie-ups with allleading automobile manufacturers to ensure the best deals. Flexibleschemes & quick processing. Hassle-free application process onthe click of a mouse.

COMMERCIAL VEHICLE LOAN

• Reaches you through more than 700 locationsacross the country.

• Range of products under one umbrella.

• Funding of various products like HCVs, Buses,MCVs, LCVs, 3 wheelers & used vehicle.

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• Range of services on existing loans & extended products like funding of new vehicles,refinance on used vehicles, balance transfer on high cost loans, top up on existing loans,Xtend product, working capital loans & other banking products..

• Preferred financier status with most of the leading manufacturers.

• Simple documentation.

• Quick turn around time.

• Flexible financing solutions to meet the individual requirement.

TWO WHEELER LOANS:

"Zoom" away in your favourite two wheeler. ICICI provides attractiveschemes at competitive interest rates.

• Finance facility available for all two wheelers ranging frommopeds to motor bikes.

•  Now avail Finance upto 90%* of the On Road Cost of thevehicle, repayable in convenient tenure options ranging from 6

months to 36 months*.

• Ride Easy Pay Easy with ICICI Bank Two Wheeler Loans.• In an unlikely case of your not meeting our norms NO PROBLEM - you can still avail

our loan, any blood relative can be your co-applicant.

• Existing ICICI Bank Customers ride away on your favourite Two Wheeler by availingLoan On Phone*-- a facility to get an instant loan over the phone!! Apply for loan online,call or through sms.

FARM EQUIPMENT LOANS:

• ICICI is the preferred financier for almost all leadingtractor manufacturers in the country.

• ICICI finances farm equipments in over 381 locationsspread across the country.

• Provides fast processing of files with easy documentation.

• Flexible repayment options in tandem with the farmer'sseasonal liquidity.

• Monthly, Quarterly and Half-yearly repayment patterns tochoose from. Comfortable repayment tenures from 1 year to 6 years.

CONSTRUCTION EQUIPMENT LOANHaving funded infrastructure for over 4 decades, ICICIunderstands the need of the customers better. ICICI Bank offersattractive financial packages through their excellent distributionnetwork. The products are customised for new entrepreneur tolarge business houses. ICICI has tie-up with leading constructionequipment manufacturers for wide range of products. The Bank 

take over existing high cost loans at competitive terms resulting in huge savings and is quick 

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in processing due to easy formalities and one time sanction of loans for disbursement over a period of time.

OFFICE EQUIPMENT LOAN:

 ►

Minimum documentation required .►

Doorstep Service.►

Competitive Interest rates.  ►Flexible repayment structure. ►Hassle-free application process with the click of a mouse.

►Details on your application status online.

MEDICAL EQUIPMENT LOAN:

Professional doctors are aware of the distinct advantages that the latest medical equipmentcan give their patients. ICICI Bank Medical Equipment Loans supports professionals in their effort to give the best to their patients. It's our humble way of being involved in a noble profession.Loans are offered for:

• Purchase of New equipments.

• Takeover of Existing loans. 

Our Key features are:

• Doorstep Service.

• Funding in more than 150 locations across the country.

• The bank provides Competitive interest rates.

• ICICI also offers flexible repayment structure.

LOAN AGAINST SECURITIES

Loans against Securities enables customers to obtain loans against their securities. So they getinstant liquidity without having to sell their securities.

All customers have to do is pledge your securities in favour of ICICI Bank The Bank will thengrant them an overdraft facility upto a value determined on the basis of the securities pledged bythem. A current account will be opened and customer can withdraw money as and when theyrequire. Interest will be charged only on the amount withdrawn and for the time span utilised.

ICICI offer loans against:

• Demat Shares

• RBI Relief Bonds

• Mutual Funds Units

• India Millennium Deposits (IMDs)

• ICICI Bank Bonds

• Life Insurance Policies (Single Premium)

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CREDIT CARDS:

ICICI Bank Credit Cards give you the facility of cash, convenienceand a range of benefits, anywhere in the world. These benefits rangefrom life timefree cards, Insurance benefits, global emergencyassistance service,discounts, utility payments, travel discounts andmuch more.

 DEBIT CARDS: 

The ICICI Bank Debit Card is a revolutionary form of cash thatallows customers to access their bank account around the clock,around the world.The ICICI Bank Debit Card can be used for shopping at more than 100,000 merchants in India and 13 millionmerchants worldwide.

TRAVEL CARD:

Presenting ICICI Bank Travel Card. The Hassle Free way to Travelthe world. Traveling with US Dollar, Euro, Pound Sterling or SwissFrancs; Looking for security and convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Hasthe convenience of usage of Credit or Debit card.

PRE PAID CARDS:

ICICI Bank brings to you a complete bouquet of pre-paid cards providing payment solutions at your fingertips. ICICI Bank pre- paid cards are a safe &convenient way for associate payments,disbursements, gifting & small ticket transactions. Pre-paid cardsare available on a VISA platform thus providing accessibility toover one lakh merchant establishments & cash withdrawal from allVISA ATMs in India.

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INVESTMENTS

ICICI Bank cares about allneeds. Along with Deposit products and Loanofferings, ICICI Bank assists people to manage

their finances by providing various investment options ranging from ICICI Bank Tax SavingBonds to Equity Investments through Initial Public Offers and Investment in Pure Gold.ICICI Bank facilitates following investment products:

• ICICI Bank Tax Saving Bonds

• Government of India Bonds• Investment in Mutual Funds

• Initial Public Offers by Corporate

• Investment in "Pure Gold"• Foreign Exchange Services

• Senior Citizens Savings Scheme, 2004

Customers can invest in above products through any of ICICI bank branches. For select productsICICI Bank also provides the ease of investing through electronic channels like ATMs andInternet (ICICIdirect.com)

ICICI BANK BONDS

All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA" by ICRAindicating the highest degree of safety for your money.

Investment in ICICI Bank Bonds are eligible for tax rebate under Sec 88 to the full extent possible.

Bonds are listed on BSE, NSE.

GOI BONDS

8% Savings Bonds (Taxable), 2003.

Low risk.

Reasonable investment tenure.

 Nomination facility available.

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Cannot be traded in secondary market.

Interest income taxable.

Mutual Funds

Mutual Funds pool money of various investors to purchase a wide variety of securities while pursuing a specific goal. Selection of Securities for the purpose is done by specialists from thefield. Returns generated are distributed to the Investors.Mutual Fund Companies offer various schemes. Investors can choose any particular Fund/Schemeor mix of Funds/Schemes depending upon their perception towards risk. Investment is done onthe basis of prevailing Net Asset Values of various schemes. Mutual Funds Investments aresubject to Market Risks.

 Types of Funds Sold 

ICICI Bank helps investor determine which types of funds you need to meet your investmentgoals. This may include the following types of funds:

Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemesetc.

Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc.

Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child

education Schemes etc.ICICI Bank helps investors identify an appropriate mix of Mutual Fund schemes for their  portfolio using asset allocation strategies. Through ICICI Bank investor can invest in various schemes of multiple mutual funds with decent performance record. investor can take the aid of ICICI Bank’s various research reports on mutualfunds and their schemes before choosing a scheme for investment. ICICI Bank offers investmentin Mutual Funds through Multiple Channels. With ICICI Bank, investor can invest in MutualFunds through following channels.

• ICICI Bank Branches

• ICICI Bank ATM’S

• ICICIdirect.com

And provide a Dedicated workforce to serve clients.

• Before being deputed, our officers complete a comprehensive training program and, oncedeputed, they receive thorough instructions in financial planning skills and techniques

• Throughout their careers officers also attend programs to update their skills. All officersin charge of Mutual Funds are certified professionals by AMFI (Association of MutualFunds in India)

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• Many of these officers also hold professional degrees like - MBA, CA, ICWA, and CFAetc.

ICICI keeps the investors updated on the latest happenings in the Mutual Fund industry and thevarious financial markets through regular electronic updates (daily & weekly) through Emails.ICICI also send out a monthly magazine on investments to their customers.

Initial public offerings (IPO)

Investor can invest in IPOs online through www.icicidirect.com with same convenience of investing in equities - hassle-free and with zero paper work. Also, get in-depth analyses of  newIPOs issues (Initial Public Offerings) which are about to hit the market. IPO calendar, recent IPOlistings, prospectus/offer documents and live prices will help you keep on top of  the IPO markets.

ICICI Bank Pure Gold

Gold has been traditionally the most favored form of investment for Indians. In fact, India,even today is amongst the highest consumers of Gold in the world. However, the Gold marketremains largely unorganized with reliability and convenience remaining the key issues for gold buyers in the country.ICICI Bank with its `Pure Gold' offer attempts to bridge the gap between the need of the customers for buying gold and availability of an organized avenue tosatisfy that need, by taking care of the two key components:-

Reliability and Convenience.

Reliability 24 Carat ICICI Bank Pure Gold is imported from Switzerland. This Gold carries a99.99% Assay Certification, signifying highest level of purity, as per international standards.

ConvenienceICICI Bank Pure Gold is competitively priced based on daily prices in the international bullionmarket. Currently, gold is available in 2.5g, 5g, 8g, 20g and 50g categories.

 

PRIVATE BANKING

Benefits:

Comprehensive range of products and services

-Savings Account, Fixed Deposits, Recurring Deposits, Quantum Optima, Current Accounts,-Resident Foreign Currency (Domestic) Accounts etc.-Asset Products- Home Loans, Car & Personal Loans, Loan Against Securities etc.-Investments- Government of India Bonds, Mutual Funds, Capital Gain Bond etc.-Insurance-Web Trade and Demat Accounts-Gold Coins & Bureau de Change

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-International Debit and Credit cards-And many more....

 Exclusivity and Convenience

-Dedicated Officer -Separate interaction area in the branch

-Anywhere Banking facility-Exclusive Phone Banking service-Competitive Pricing-Reduced rates for products and services

-Several Complimentary Offers-Value-linked benefits

Competitive Pricing 

-Reduced rates for products and services

-Several Complimentary Offers

-Value-linked benefits

SERVICES

INVESTMENT SERVICES

•  DematServicesA Demat Account allows employees transact in shares instantaneously in a safe andsecure manner.

•  ReliefBonds/MutualFunds/InsuranceSalary Account customers can now invest in Government of India relief and savings  bonds, a basket of mutual funds, foreign exchange facilities and Insurance productsthrough ICICI Bank.

• GoldCoinEmployees can buy 24 karats Pure Gold, which ICICI Bank brings to you. Each coincomes to you straight from Switzerland. Refined to 99.99% fine gold and sealed with aunique Certificate of Authencity- guaranteeing you its purity.

FOREX SERVICES

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ICICI Bank's Foreign Exchange Services will help you organize your foreign exchange in themost hassle free manner. Whether its Foreign Currency, Travelers Cheques or Travel Card, ICICI

Bank Foreign Exchange Services is a one-stop solution to your foreign exchange requirement.

NRI SERVICES

Wherever people may be, in India or abroad, ICICI Bank has created a wide range of productsand services that provide customers complete financial solutions. Helping them to make the rightdecisions at the right time and can be rest assured that they are in the safe and trustworthy handsof ICICI bank.

 Deposit Products:

1. NRE Account : An NRI can open a Non-Resident External Account(NRE Account)with any

 bank in India. The account not only lets customers manage their money that they earn in India (as permitted by FEMA Regulations) but also of the money earned abroad. The money in the accountand the interest earned on it can be sent back outside India without any authorization from RBI.The Account can be opened and funded in any permissible currency, and is later converted intoIndian Rupees. This Account offers dual benefits of high returns as offered by the fixed depositsand liquidity as offered by the savings account. The Account helps customers take care of all their financial needs, quickly and conveniently. In addition to attractive rupee interest rates customersget free money transfers, easy access for the customer as well as for his/her family back in India,and a free mandate card for the loved ones in India.

2 . NRO Account: The Non-Resident Ordinary Account (NRO Account) allows customers tohold the money they have earned in India such as rent, dividends, pensions etc. They can open theaccount and can fund it in any permissible currency and is later converted into Indian Rupees. NRO account offers attractive exchange rates upon conversion of foreign currency into IndianRupees. This account to offers high returns and liquidity. However, the interest earned on the principal amount in the account can be sent back after the deductions of tax in India.

3. FCNR Account:A Foreign Currency Non Resident Account (FCNR Account) allowscustomers to maintain funds as Term Deposits in various foreign currencies, thereby guardingcustomers against fluctuating exchange rates. Under this account both the principal amount andthe interest can be sent back fully, and are taxable in India. The tenures range from 12 to 36month

4. RFC Account :  By opening a Resident Foreign Currency Account (RFC Account)

customers can maintain funds as Term deposits in various foreign currencies even after they havereturned to India. Both the principal and the interest can be remitted outside India. The tenuresrange from 1month to 36months.

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Advisory Services

Private Equity PlacementICICI Bank's Small Enterprises Group's (SEG) Investment Banking team is dedicated to provideyou niche and exclusive investment banking services.

The ICICI Bank Edge

• Capital Raising

At times for a growing company, the amount of capital that a promoter can infuse in the business becomes limited. Businesses can be self sufficient for capital needs in their nascent and initial growth phases. However to meet expansion and growth plans, externalcapital is imperative. We at ICICI Bank, with our lending experience, fully understandthis and help clients raise equity to fund growth. We have developed a strong network of domestic and international investors who are keen to partner with such success stories inIndia and these players solicit our advice for investing into such companies. .

• Buy And Sell Side Advisory

Inorganically adding growth to a business or hiving off non-core activities or opportunityto realize right value for the business created or an instance of taking a company on a

 bigger scale are the ways to strategize today. We at ICICI Bank provide assistance on both buy side and sell side transaction. With a large client franchise built, more than10,000 asset clients and international linkages in developed economies, ICICI Bank can bring in the best synergy partner to conclude a sell side or buy side advisory assignment.

• Special Situation Solutions

Backed by institutional legacy, in-depth understanding and linkages with keystakeholders in the process of turnaround, ICICI Bank's Investment Banking team candesign solutions for special situations like CDR, BIFR, OTS, etc. Count on us to turnaround the capital structure of your company and bring in additional capital for growth.

Online Services

ICICI Bank provides a variety of online services.now these is no need of walking up to the bank  branch, every time you need to do your banking. As you can do a lot of it online. From payingyour bills to transferring funds, booking your rail/air tickets, shopping, sending a money order and doing lots more.

 

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AWARDS & RECOGNITION For the third year in a row ICICI Bank has won The Asset Triple A Country Awards for Best Domestic Bank in India.

ICICI Bank won the Most Admired Knowledge Enterprises (MAKE) India 2009 Award. ICICI Bank won the

first place in "Maximizing Enterprise Intellectual Capital" category, October 28, 2009.

Ms Chanda Kochhar, MD and CEO was awarded with the Indian Business Women Leadership Award at NDTV Profit Business Leadership Awards , October 26, 2009.

ICICI Bank received two awards in CNBC Awaaz Consumer Awards; one for the most preferred auto loan anthe other for most preferred credit Card, on September 30, 2009.

Ms. Chanda Kochhar, Managing Director & CEO ranked in the top 20 of the World's 100 Most Powerful

Women list compiled by Forbes, August 2009.

Financial Express at its FE India's Best Banks Awards, honoured Mr. K.V. Kamath, Chairman with theLifetime Achievement Award , July 25, 2009.

ICICI Bank won Asset Triple A Investment Awards for the Best Derivative House, India. In addition ICICIBank were Highly commended , Local Currency Structured product, India for 1.5 year ADR GDR linkedRange Accrual Note., July 2009.

ICICI bank won in three categories at World finance Banking awards on June 16, 2009• Best NRI Services bank • Excellence in Private Banking, APAC Region• Excellence in Remittance Business, APAC Region.

ICICI Bank Mobile Banking was adjudged "Best Bank Award for Initiatives in Mobile Payments and

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Banking" by IDRBT, on May 18, 2009 in Hyderabad.

ICICI Bank's  b2 branchfree banking was adjudged "Best E-Banking Project Implementation Award 2008" byThe Asian Banker, on May 11, 2009 at the China World Hotel in Beijing.

ICICI Bank bags the “Best bank in SME financing (Private Sector)” at the Dun & Bradstreet Banking awards2009.

ICICI Bank NRI services wins the “Excellence in Business Model Innovation Award” in the eighth AsianBanker Excellence in Retail Financial Services Awards Programme.

ICICI Bank's Rural Micro Banking and Agri-Business Group wins WOW Event & Experiential MarketingAward in two categories - “Rural Marketing programme of the year” and “Small Budget On Ground

Promotion of the Year”. These awards were given for Cattle Loan 'Kamdhenu Campaign' and 'Talkies on themove campaign' respectively.

ICICI Bank's Germany Branch has been certified by “Stiftung Warrentest”. ICICI Bank is ranked 2nd amongs57 savings products across 19 banks

ICICI Bank Germany won the yearly banking test of the investor magazine €uro in the “call money”category.

The ICICI Bank was awarded the runner's up position in Gartner Business Intelligence and Excellence Award

for Asia Pacific for its Business Intelligence functions.

ICICI Bank's Organisational Excellence Group was recently awarded ISO 9001:2008 certification by TUV Nord. The scope of certification comprised processes around consulting and capability building on methods ofquality & improvements.

ICICI Bank has been awarded the following titles under The Asset Triple A Country Awards for 2009:• Best Transaction Bank in India• Best Trade Finance Bank in India• Best Cash Management Bank in India

• Best Domestic Custodian in India

ICICI Bank has bagged the Best Cash Management Bank in India award for the second year in a row. Theother awards have been bagged for the third year in a row.

ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the Canadian Helen Keller Centre's Fifth Annual Luncheon in Toronto. The award was given to ICICI Bank its long-standing support to

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this unique training centre for people who are deaf-blind.

 Chapter 3

RESEARCH METHODOLOGY 

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Research methodology

The procedure adopted for conducting the research requires a lot of attention as it has

direct bearing on accuracy, reliability and adequacy of results obtained. It is due to thisreason that research methodology, which we used at the time of conducting the research,needs to be elaborated upon. It may be understood as a science of studying how researchis done scientifically. So, the research methodology not only talks about the researchmethods but also considers the logic behind the method used in the context of theresearch study. Research Methodology is a way to systematically study and solve theresearch problems. If a researcher wants to claim his study as a good study, he mustclearly state the methodology adapted in conducting the research the research so that itway be judged by the reader whether the methodology of work done is sound or not.

The Research Methodology here includes:-

Objective of study

Meaning of Research.

Research Problem.

Research Design.

Data Collection method.

Analysis and interpretation of Data

Limitation of study

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OBJECTIVE OF THE STUDY 

Objectives are the ends that states specifically how goal be achieved. Every study musthave an objective for which all the efforts have been done. Without objective no researchcan be conducted and no result can be obtained. On the basis of objective all the research process is followed. Objectives are the main aspect of every study. The objective of thestudygives direction to go through the research problem. It guides the researcher and keeps himon track. I have two objectives regarding my research project. These are shown below :-1. Primary objective2. Secondary objective

1. Primary objective :-

1) To study the software used in ICICI Bank.2) To analyse the financial statements of the corporation to assess it’strue financial position by the use of ratios.

2. Secondary objective :-1) To find out the shortcomings in ICICI Bank.2) To see whether ICICI Bank is going well or not in different areas.

IMPORTANCE OF THE STUDY 

• By “FINANCIAL PERFORMANCE ANALYSIS OF ICICI Bank” we would beable to get a fair picture of the financial position of ICICI Bank.

• By showing the financial performance to various lenders and creditors it is possible to get credit in easy terms if good financial condition is maintained in thecompany with assets outweighing the liabilities.

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• Protecting the property of the business.

• Compliances with legal requirement.

Meaning of Research:

Research is defined as “a scientific and systematic search for pertinent information on aspecific topic”. Research is an art of scientific investigation. Research is a systematizedeffort to gain now knowledge. It is a careful investigation or inquiry especially throughsearch for new facts in any branch of knowledge. Research is an academic activity andthis term should be used in a technical sense. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions. Making deductions andreaching conclusions to determine whether they if the formulating hypothesis. Research isthus, an original contribution to the existing stock of knowledge making for itsadvancement. The search for knowledge through objective and systematic method of finding solutions to a problem is research.

Research Problem

The first step while conducting research is careful definition of Research Problem. “ToERR IS THE HUMAN” is a proverb which indicates that no one is perfect in this world.Every researcher has to face many problemswhich conducting any research that’s why problem statement is defined to know which type of problems a researcher has to facewhile conducting anystudy. It is said that,“Problem well defined is problem half solved.”

Basically, a problem statement refers to some difficulty, which researcher experiences in the context of either a theoretical or practical situation and

wants to obtain the solution for the same.

The problem statement here is:-

“TO MAKE A FINANCIAL ANALYSIS OF FINANCIALSTATEMENTS OF ICICI BANK”

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Research Design

A research designs is the arrangement of conditions for collection and analysis data in amanner that aims to combine relevance to the research purpose with economy in procedure. Research Design is the conceptual structure with in which research inconducted. It constitutes the blueprint for the collection measurement and analysis of data. Research Design includes and outline of what the researcher will do form writing

the hypothesis and it operational implication to the final analysis of data. A researchdesign is a framework for the study and is used as guide in collection and analyzing thedata. It is a strategy specifying which approach will be used for gathering and analyzingthe data. It also include the time and cost budget since most studies are done under thesetwo cost budget since most studies are done under theses tow constraints. The design issuch studies must be rigid and not flexible and most focus attention on the following:-

What is the study about?

Why is the study being made?

Where will the study be carried out?

What type of data is required?

Where can be required data be found?

What period of time will the study include?

What will be sample design?

What techniques of data collection will be used?

How will the data be analyzed?

In what style will the report be prepared?

TYPES OF RESEARCH DESIGN :

EXPERIMENTAL RESEARCH DESIGN

EXPLORATORY RESEARCH DESIGN

DESCRIPTIVE& DIAGNOSTIC RESEARCH

Exploratory Research Design: This research design is preferred when researcher has avague idea about the problem the researcher has to explore the subject.

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Experimental Research Design – The research design is used to provide a strong basisfor the existence of casual relationship between two or more variables.

Descriptive Research Design – It seeks to determine the answers to who, what, where,when and how questions. It is based on some previous understanding of the matter.

Diagnostic Research Design It determines the frequency with which something occursor its association with something else.

RESEARCH DESIGN USED IN THE STUDY:

Descriptive research design is used in this study because it will ensure the minimizationof bias and maximization of reliability of data collected. Descriptive study is based onsome previous understanding of the topic. Research has got a very specific objective andclear cut data requirements The researcher had to use fact and information alreadyavailable through financial statements of earlier years and analyse these to make critical

evaluation of the available material. Hence by making the type of the research conductedto be both Descriptive and Analytical in nature. From the study, the type of data to becollected and the procedure to be used for this purpose were decided.

Data Collection Method

The process of data collection begins after a research problem has beendefined and research design ahs been chalked out. There are two types of data – 

PRIMARY DATA -

It is first hand data, which is collected by researcher itself. Primary data is collected byvarious approaches so as to get a precise, accurate, realistic and relevant data. The maintool in gathering primary data was investigation and observation. It was achieved by adirect approach and observation from the officials of the company.

SECONDARY DATA - it is the data which is already collected by someone else.Researcher has to analyze the data and interprets the results. It has always been importantfor the completion of any report. It provides reliable, suitable, adequate and specificknowledge.

TYPE OF DATA USED IN THE STUDY 

The required data for the study are basically secondary in nature and the data arecollected from

The audited reports of the company.

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INTERNET – which includes required financial data collected form ICICI Bank’sofficial website i.e www.icici.com and some other websites on the internet for the purpose of getting all the required financial data of the bank and to get detailedknowledge about ICICI Bank for the convenience of study.

Brouchers of ICICI Bank.

The valuable cooperation extended by staff members and the branch manager of ICICI bank,dharmshala contributed a lot to fulfill the requirements in thecollection of data in order to complete the project.

Methods of data analysis

The data collected were edited, classified and tabulated for analysis. The analytical toolsused in this study are:

ANALYTICAL TOOLS APPLIED:

The study employs the following analytical tools:1. Comparative statement.2. Trend Percentage.3. Ratio Analysis.4. Cash Flow Statement.

Limitations of study

Difficulty in data collection. Limited knowledge about the bank in the initial stages.

Branch manager was reluctant for giving financial data of the bank.

The analysis and interpretation are based on secondary datacontained in the published annual reports of ICICI Bank for thestudy period.

Due to the limited time available at the disposable , the study has been confined for a period of 5 years (2005-2009).

Ratio itself will not completely show the company’s good or badfinancial position.

Inter firm comparison was not possible due to the nonavailability of competitors data.

The study of financial performance can be only a means to knowabout the financial condition of the company and cannot show athrough picture of the activities of the company

.

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Chapter 4 

FINANCIAL ANALYSIS

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INTRODUCTION OF THE TOPIC

Meaning Of Financial StatementsFinancial statements refer to such statements which contains financial information aboutan enterprise. They report profitability and the financial position of the business at theend of accounting period. The team financial statement includes at least two statementswhich 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 mirrorsthe 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 operationsduring a certain period of time in terms of the revenues obtained and the cost incurredduring the year. Thus the financial statement provides a summarized view of financial positions and operations of a firm.

Meaning Of Financial Analysis

The term financial analysis is also known as ‘analysis and interpretation of financial

statements’ refers to the process of determining financial strength and weakness of thefirm by establishing strategic relationship between the items of the Balance Sheet, Profit

and Loss account and other operative data.The first task of financial analysis is to select the information relevant to the decisionunder consideration to the total information contained in the financial statement. Thesecond step is to arrange the information in a way to highlight significant relationship.The final step is interpretation and drawing of inference and conclusions. Financialstatement is the process of selection, relation and evaluation.

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Features of Financial Analysis

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

understandable form.

o To classify the items contained in the financial statement in convenient and

rational groups.

o 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 management so that he may be ableto find out whether these plans are properly executed or not.

The extent of analysis should be determined so that the sphere of work may bedecided. 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. Itwill involve the grouping similar data under same heads. Breaking down of 

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individual components of statement according to nature. The data is reduced to astandard 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. Thesignificance and utility of financial data is explained for help in decision making.

The conclusions drawn from interpretation are presented to the management in theform of reports.

Types Of Financial Analysis

There are different ways of analysis the financial statements:

1. On The Basis Of Process Of Analysis

a) Horizontal Analysis : This is used when the financial statement of a number of years are to be analysed. Such analysis indicates the trends and the increase or decrease in various items not only in absolute figures but also in percentage form.This analysis indicates the strengths and weaknesses of the firm. This analysis isalso called as dynamic analysis because it also shows the trend of the business.

b) Vertical Analysis : This is used when financial statements of a particular year or on a particular date are analyzed. For this type of analysis we generally use

common size statements and the ratio analysis. It involves a study of quantitativerelationship among various items of balance sheet and profit and loss account.This type of analysis is static analysis because this is based on the financial resultsof one year. Vertical analysis is useful when we have to compare the performanceof different departments of the same company.

Among these two types of analysis, horizontal analysis is more useful because it brings out more clearly the trends of working of a firm. This gives us more concrete bases for future planning.

2. On The Basis Of Information Available

a) Internal Analysis : This analysis is based on the information available to the

 business firm only .Hence internal analysis is made by the management. Internalanalysis is more reliable and helpful for financial decisions.

b) External Analysis : This analysis is made on the basis of published

statements,reports and informations. This analysis is made by external partiessuch as creditors,investors,banks,financial analysis etc. external analysis is less

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reliable in comparison to internal analysis because of limited and often incompleteinformation.

3. On The Basis Of Number Of Firms

a) Inter-Firm Analysis : When financial analysis of two or more companies or firms are analyzed and compared over a number of accounting period, it is calledinter-firm analysis.

b) Intra -Firm Analysis : intra-firm analysis is concerned with the analysis of financial performance of different units or departments or segments of the sameenterprise or company. Similarly when financial statements of two or more years of thesame firm are analyzed and compared it is also called as intra-firm analysis.

4. On The Basis Of Objectives

a) Accounting Analysis: Accounting analysis is analysis of past financial performanceand involves examining how generally accepted accounting principles and conventionshave been applied in arriving at the values of assets, liabilities, revenues and expenses.

b) Prospective Analysis : Prospective analysis involves developing forecasted financialstatements keeping in view the changes that are likely to shape and affect the businessgiven the assumptions about these changes and the limitation of the forecasting techniqueused. This is quite complicated analysis.

Methods/Tools Of Financial AnalysisA number of methods can be used for the purpose of analysis of financial statements.These are also termed as techniques or tools of financial analysis. Out of these, andenterprise can choose those techniques which are suitable to its requirements. The principal techniques of financial analysis are:-

a. Comparative financial statements b. Common-size statementsc. Trend analysisd. Ratio analysise. Funds flow analysisf. Cash flow analysisg. Break even point analysis

a. Comparative Financial Statements:

When financial statements figures for two or mote years are placed side-side to facilitatecomparison, these are called ‘comparative Financial Statements’. Such statements notonly show the absolute figures of various years but also provide for columns to indicate

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to increase ort decrease in these figures from one year to another. In addition, thesestatements may also show the change from one year to another on percentage form. Suchcooperative statements are of great value in forming the opinion regarding the progress of the enterprise.

Objectives purpose or significance of comparative financial statements

1.To simplify data2.To make inter period/inter-firm comparison3.To indicate the trends4.To enable forecasting5.To indicate the strengths and weaknesses of the firm6.To compare the performance7.To analyse expenses8.To analyse profits

Tools for comparison of financial statements

Comparative financial statement is a tool of financial analysis that depicts change in eachitem of the financial statement in both absolute amount and percentage term, taking theitem in preceding accounting period as base.

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

1.Comparative Balance Sheet : The comparative balance sheet shows increase anddecrease in absolute terms as well as percentages ,in various assets ,liabilities and capital.

A comparative analysis of balance sheets of two periods provides information regarding progress of the business firm.The main purpose of comparative balance sheet is to measure the short- term and long-term solvency position of the business.

2. Comparative Income Statement : Comparative income statement is prepared bytaking figures of two or more than two accounting periods,to enable the analyst to havedefinite knowledge about the progress of the business.Compartative income statementsfacilitate the horizontal analysis since each accounting variable is analysed horizontally.

b. Common- Size Statements:

Common size statements are such statements in which the items of financial statementsare covered into percentage of common base. In common-size income statement, byassuming net sales as 100(i.e %)and other individual items are converted as percentage of this. Similarly, in common –size balance sheet ,total assets are assumed to be 100 (i.e %)and individual assets are expressed as percentage.

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Objectives of common size statements

1. Presenting the change in various items in relation to total assets or total liabilitiesor net sales.

2. Establishing a relationship.

3. Providing a common base for comparison.

Types of common size statements

1. Common-Size Balance Sheet : A common –size balance sheet is a statement inwhich total of assets or liabilities is assumed to be equal to 100 and all the figuresare expressed as percentage of the total. That is why it is known as percentage

 balance sheet.Common-size balance sheet facilitate the vertical analysis since each item of theBalance Sheet is analyzed vertically.

2. Common-Size Income Statement : Common-size income statement is astatement in which the figures of net sales is assumed to be equal to 100 and allother figures of “profit and loss A/c” are expressed as percentage of net sales.thisstatement facilitate the vertical analysiss since each accounting variable isanalyzed vertically. One can draw conclusion, regarding the behaviour of expenses over period of time by examining these percentages.

c. Trend Analysis: Trend percentage are very useful is making comparative study of the financial statementsfor a number of years. These indicate the direction of movement over a long tine and helpan analyst of financial statements to form an opinion as to whether favorable or unfavorable tendencies have developed. This helps in future forecasts of various items.For calculating trend percentages any year may be taken as the ‘base year’. Each item of  bease year is assumed to be equal to 100 and on that basis the percentage of item of each

year calculated.

d. Ratio Analysis:

Meaning :

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Absolute figures expressed in financial statements by themselves are meaningfulness.These figures often do not convey much meaning unless expressed in relation to other figures. Thus, it can be say that the relationship between two figures, expressed inarithmetical terms is called a ratio.

“According to R.N. Anthony.”

“A ratio is simply one number expressed in terms of another. It is found by dividing one number into the other.”

TYPES OF RATIOS

1. Proportion or Pure Ratio or Simple ratio.2. Rate or so many Times.3. Percentage4. Fraction.

OBJECTS AND ADVANTAGES OR USES OF RATIO

ANALYSIS

1. Helpful in analysis of financial statements.

2. Simplification of accounting data.3. Helpful in comparative study.4. Helpful in locating the weak spots of the business.5. Helpful in forecasting6. Estimate about the trend of the business7. Fixation of ideal standards8. Effective control9. Study of financial soundness.

LIMITATION OF RATIO ANALYSIS

1. False accounting data gives false ratios2. Comparisons not possible of different firms adopt different3. accounting policies.4. Ratio analysis becomes less effective due to price level5. change6. Ratios may be misleading in the absence of absolute data.7. Limited use of a single Ratio.8. Window-Dressing9. Lack of proper standards.10. Ratio alone are not adequate for proper conclusions

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11. Effect of personal ability and bias of the analyst.

CLASSIFICATION OF RATIOS

In view of the financial management or according to the tests satisfied,various ratios have been classifieds as below:

Liquidity Ratios : These are the ratios which measure the short-term solvency or financial position of a 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.Long –Term Solvency and Leverage Ratios : Long-term solvency ratios convey afirm’s ability to meet the interest cost and repayment schedules of its long-termobligation e.g. Debit Equity Ratio and Interest Coverage Ration. Leverage Ratios.

Activity Ratios: Activity ratios are calculated to measure the efficiency with which the

resource of a firm have been employed. These ratios are also called turnover ratios because they indicate the speed with which assets are being turned over into sales e.g.debtors turnover ratio.

Profitablity Ratios: These ratios measure the results of business operations or overall performance and effective of the firm e.g. gross profit ratio, operating ratio or capitalemployed. Generally, two types of profitability ratios are calculated.(a) In relation to Sales, and

(b)In relation in Investment

FUNCTIONAL CLASSIFICATION IN VIEW OFFINANCIAL MANAGEMENT OR CLASSIFICATIONACCORDING TO TESTS

Liquidity Ratios Long-term

Solvency and

Leverage Ratios

Activity Ratios Profitability

Ratios

-Current Ratio-Liquid Ratio(Acid) Test or Quick Ratio.-Absolute liquid or -Cash Ratio.-DebtorsTurnover Ratio

Financial Operating

Composite

-Debt. EquityRatio-Debt to TotalCapital Ratio-InterestCoverage Ratio

Inventory Turnover Ratio.Debtors Turnover RatioFixed AssetsTurnover RatioTotal Asset Turnover Ratio

In Relation to Sales.Gross Profit Ratio.Operating Ratio.Operating ProfitRatio. Net Profit Ratio.Expenses RatioIn relation to

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-Creditors Turnover Ratio-Inventory Turnover ratio

-Capital GearingRatio

Working CapitalTurnover Ratio.Payables Turnover RatioCapital EmployedTurnover Ratio

investments

Return onInvestments.Return on capital.Return on EquityCapital.

Return on totalResourcesEarning per share.Price Earning Ratio.

CASH-FLOW STATEMENTA cash – flow statement is a statement showing inflows (receipts) andoutflows (payments) of cash during a particular period. In other words, it is asummary of sources and applications of each during a particular span of time.

Objectives 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 various Separately.7. Helpful in Making Dividend Decisions.

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BALANCE SHEET OF ICICI BANK LTD.As On Mar 2006,Mar 2007,Mar2008,Mar2009, Mar 2010(Rs. In crores)

Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 1,239.83 1,249.34 1,462.68 1,463.29 1,114.89

Equity Share Capital 889.83 899.34 1,112.68 1,113.29 1,114.89

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 350.00 350.00 350.00 350.00 0.00

Reserves 21,316.16 23,413.92 45,357.53 48,419.73 50,503.48

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 22,555.99 24,663.26 46,820.21 49,883.02 51,618.37Deposits 165,083.17 230,510.19 244,431.05 218,347.82 202,016.60

Borrowings 38,521.91 51,256.03 65,648.43 67,323.69 94,263.57

Total Debt 203,605.08 281,766.22 310,079.48 285,671.51 296,280.17

Other Liabilit ies & Provisions 25,227.88 38,228.64 42,895.39 43,746.43 15,501.18

Total Liabilities 251,388.95 344,658.12 399,795.08 379,300.96 363,399.72

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 8,934.37 18,706.88 29,377.53 17,536.33 27,514.29

Balance with Banks, Money at Call 8,105.85 18,414.45 8,663.60 12,430.23 11,359.40

Advances 146,163.11 195,865.60 225,616.08 218,310.85 181,205.60

Investments 71,547.39 91,257.84 111,454.34 103,058.31 120,892.80

Gross Block 5,968.57 6,298.56 7,036.00 7,443.71 7,114.12

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Accumulated Depreciation 1,987.85 2,375.14 2,927.11 3,642.09 3,901.43

Net Block 3,980.72 3,923.42 4,108.89 3,801.62 3,212.69

Capital Work In Progress 147.94 189.66 0.00 0.00 0.00

Other Assets 12,509.57 16,300.26 20,574.63 24,163.62 19,214.93

Total Assets 251,388.95 344,658.11 399,795.07 379,300.96 363,399.71

Contingent Liabilities 119,895.78 177,054.18 371,737.36 803,991.92 694,948.84

Bills for collection 15,025.21 22,717.23 29,377.55 36,678.71 38,597.36

Book Value (Rs) 249.55 270.37 417.64 444.94 463.01

PROFIT AND LOSS ACCOUNT OF ICICI BANK.

Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Interest Earned 13,784.50 22,994.29 30,788.34 31,092.55 25,706.93

Other Income 5,036.62 6,962.95 8,878.85 8,117.76 7,292.43

Total Income 18,821.12 29,957.24 39,667.19 39,210.31 32,999.36

Expenditure

Interest expended 9,597.45 16,358.50 23,484.24 22,725.93 17,592.57

Employee Cost 1,082.29 1,616.75 2,078.90 1,971.70 1,925.79

Selling and Admin Expenses 2,360.72 4,900.67 5,834.95 5,977.72 6,056.48

Depreciation 623.79 544.78 578.35 678.60 619.50

Miscellaneous Expenses 2,616.78 3,426.32 3,533.03 4,098.22 2,780.03

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 5,274.23 8,849.86 10,855.18 10,795.14 10,221.99

Provisions & Contingencies 1,409.35 1,638.66 1,170.05 1,931.10 1,159.81

Total Expenses 16,281.03 26,847.02 35,509.47 35,452.17 28,974.37

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 2,540.07 3,110.22 4,157.73 3,758.13 4,024.98

Extraordionary Items 0.00 0.00 0.00 -0.58 0.00

Profit brought forward 188.22 293.44 998.27 2,436.32 2,809.65

Total 2,728.29 3,403.66 5,156.00 6,193.87 6,834.63

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 759.33 901.17 1,227.70 1,224.58 1,337.95

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Corporate Dividend Tax 106.50 153.10 149.67 151.21 164.04

Per share data (annualised)

Earning Per Share (Rs) 28.55 34.59 37.37 33.76 36.10

Equity Dividend (%) 85.00 100.00 110.00 110.00 120.00

Book Value (Rs) 249.55 270.37 417.64 444.94 463.01

Appropriations

Transfer to Statutory Reserves 248.69 1,351.12 1,342.31 2,008.42 1,867.22

Transfer to Other Reserves 1,320.34 0.00 0.01 0.01 1.04

Proposed Dividend/Transfer to Govt 865.83 1,054.27 1,377.37 1,375.79 1,501.99

Balance c/f to Balance Sheet 293.44 998.27 2,436.32 2,809.65 3,464.38

Total 2,728.30 3,403.66 5,156.01 6,193.87 6,834.63

Comparative Balance Sheet Of ICICI Bank From 2005-2006 To 2008-

2009(Rs. in cror

PARTICULARS 2005-2006 2006-2007 2007-2008 2008-200

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Absolutechange

% of change

Absolutechange

% of change

Absolutechange

% of change

Absolutechange

% che

CAPITAL

 AND

 LIABILITIES :Capital 153.08 14 9.51 0.8 213.34 17 0.61 .04

Reserves andsurplus

9502.96 80 2097.76 10 21943.61 94 3062.2 7

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 Liabilitiesand Provisions

3831.71 18 13000.76 51.5 4666.75 12 851.04 2

TOTAL CAPITAL

AND LIABILITIES83729.55 50 93269.17 37 55136.96 16 (20494.12) (5.

ASSETS:

Investments 21060.04 42 19710.45 27.5 20196.5 22 (8396.03) (7.

Advances 54757.96 60 49702.49 34 29750.48 15 (7305.23 (3.

Fixed assets (57.32) (1.4) (57.3) (1.4) 185.47 5 (307.27) (7.

Capital Work InProgress

51.64 54 41.72 28.2 (189.66) -100 0.00 0.0

Current assets 7917.23 37 23871.8 81 5194.17 10 (4485.58) (8)

TOTALASSETS:

83729.55 50 93269.16 37 55136.96 16 (20494.11) (5.

Interpretation

The capital of bank increased by 14% in 2005-06,0.8% in2006-07,17% in 2007-08,and .04 % in 2008-09.This showsthat there is fluctuation in the rate of increase in the capital. In2005-06 and 2007-08 the rate of increase in capital is morethan that of 2006-07 and 2008-09.

There is a huge fluctuation in the rate of increase in reserves

and surplus also. This shows that bank is effectively utilizingits reserves and surplus.

In 2005-06 deposits increase by 65%,in 2006-07 it increased by 40%,and an increase of 6% in 2007-08.in 2008-09deposits fall by 11%.this shows that the bank has repayed itsdeposits in this year.

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The borrowings are also showing a fluctuating rate of increase.in 2008-08 the borrowings have increased at a verylow rate.this shows that bank has repaid a large amount of  borrowings in this year and thereby reducing the dependenceon outside debt.

The investments are also increasing but with lower ratescompared to the preceding years.

Similarly advances rose by 60% in 2005-06,an increase of 34% in 2006-07,15% increase in 2007-08 and finallydecresed by 3.25% in 2008-09.

Thre has been a consistent decline in the fixed assets over years.in 2005-06 and 2006-07 it decreased by 1.4 %,increased by 5% in 2007-08 and again decreasing by 7.5% in

2008-09.this is mainly due to increase in the rate of depreciation in the subsequent years.

A huge fluctuation is revealed from current assets. itincreased by 37% in 2005-06,rate of increase rose to 80% in2006-07 and then the it increased at a much lower rate i.e at10%.this shows that the bank is effectively ustilising itsworking capital.there is a fall in current assets in 2008-09 by8 %.this is mainly due to the repayment of deposits in theyears 2008-09.

1. Comparative Income Statement Of ICICI Bank 

From 2005-2006 To 2008-2009(Rs. in crores)

PARTICULARS 2005-2006 2006-2007 2007-2008 2008-200Absolutechange

% of change

Absolutechange

% of change

Absolutechange

% of change

Absolutechange

%chg

INCOME:

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 Net profit 100 127 155 207 187

Trend graph of ICICI B

0

50

100

150

200

250

300

2005 2006 2007 2008 2009

 Year 

    p    e    r    c    e    n      t    a    g    e      (      %      )

DEPOSITS

A D V A N C E

NET PROFI

Interpretation:

There is a continous increase in the deposits till the year ending 2008 followed by adownfall in the year ending 2009 due to repayment od deposits in this year.

Similarly advances also shows as increasing trend till the year ending 2008 followed by aslight downfall in the year ending 2009.

There has been a substantial increase in net profit till the year year ending 2008.In four years it has been more than double.

The overall performance of the bank is satisfactory.

3. RATIO ANALYSIS

CURRENT RATIO:An indication of a company's ability to meet short-term debt obligations; thehigher the ratio, the more liquid the company is. Current ratio is equal to current assetsdivided by current liabilities. If the current assets of a company are more than twice thecurrent liabilities, then that company is generally considered to have good short-termfinancial strength. If current liabilities exceed current assets, then the company may have problems meeting its short-term obligations.

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CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY 

Current Ratio of ICICI Bank for the period o

2005-2009

1.01

1.17

1.39 1.361.23

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

2005 2006 2007 2008 2009

 Years

      R    a      t      i    o

Current Ratio

Year Current Assets(Rs. In crores)

Current Liabilities(Rs. In crores)

Current Ratio

2005 21632.56 21396.16 1.01

2006 29549.79 25227.88 1.17

2007 53421.59 38228.64 1.39

2008 58615.76 42895.38 1.36

2009 54130.18 43746.43 1.23

Interpretation:An ideal solvency ratio is 2. The ratio of 2 is considered as a safe margin of solvency dueto the fact that if current assets are reduced to half (i.e.) 1 instead of 2, then also thecreditors 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 bank have currentassets just equal to the current liabilities which is not satisfactory as the safety margin is very lessor zero. Therefore the bank should keep more current assets so that it can maintain a satisfactorysafety margin.

LIQUID RATIO:

Liquid ratio is also known as ‘Quick’ or ‘Acid Test ‘Ratio. Liquid assets refer toassets which are quickly convertible into cash. Current Assets other stock and prepaid expensesare considered as quick assets.

Quick Ratio = Total Quick Assets

Total Current Liabilities

Quick Assets = Total Current Assets – Inventory

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Liquid Ratio of ICICI Bank for the period of 2005-2009

0.60.67

0.97

0.88

0.68

0

0.2

0.4

0.6

0.8

1

1.2

2005 2006 2007 2008 2009

 Years

     R    a     t     i

Liquid Ratio

2005 12929.97 21396.16 0.60

2006 17040.22 25227.88 0.67

2007 37121.33 38228.64 0.97

2008 38041.13 42895.38 0.88

2009 29966.56 43746.43 0.68

Interpretation:

A quick ratio of 1:1 is considered favourable because for every rupee of current liability,there isatleast one rupee of liquid assets. A higher value of ratio is considered favourable. Here this ratiois less than 1 in 2005,2006 & 2009 but in 2007 & 2008 it is close to 1 which is not satisfactory.This means the bank has not managed its funds properly in this particular period.Therefore bank 

should rationally utilise its funds to maintain an ideal liquid ratio.

EARNING PER SHARE:In order to avoid confusion on account of the varied meanings of the term capitalemployed, the overall profitability can also be judged by calculating earning per share

with the help of the following formula:

Earning Per Equity Share = Net Profit after Tax –PrefrenceDividend

No. of Equity shares

The earning per share of the company helps in determining the market price of theequity shares of the company. A comparison of earning per share of the company with

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another will also help in deciding whether the equity share capital is being effectivelyused or not. It also helps in estimating the company’s capacity to pay dividend to itsequity shareholders.

Earnings Per Share Ratio of ICICI Bank for th

period of 2005-2009

27.22 28.55

34.5937.37

33.78

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009 Years

      R    a      t      i    o

Earnings Per Share

Year Net Income Available

For Shareholders(Rs. In crores)

No. Of Equity

Shares(Rs. In crores)

EPS

2005 2005.2 73.6716 27.22

2006 2540.07 88.9823 28.55

2007 3110.22 89.9266 34.59

2008 4157.73 111.2687 37.372009 3758.13 111.325 33.78

Interpretation:Earning Per Share is the most commonly used data which reflects the performance and prospectsof the company.It affects the market price of shares.Here the Earning Per Share is shows a persistent increase till the year 2008 after that in the year 2009 Earning Per share is followed by a downfall due to decline in profits.

DIVIDEND PER SHARE :

It is expressed by dividing dividend paid to equity shareholders by no. of equity shares.this showsthe per share dividend given to equity shareholders.It is very helpful for potential investors toknow the dividend paying capacity of the company.It affects the market value of the company.

Dividend Per Share = Dividend Paid To Equity ShareholdersNo. Of Equity Shares

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Dividend Per Share Ratio of ICICI Bank for the

period of 2005-2009

8.59 8.53

10.0211.03 11

0

2

4

6

8

10

12

2005 2006 2007 2008 2009

 Years

      R    a      t      i    o

Dividend Per ShareRatio

Year Dividend Paid

(Rs. In crores)

No. Of Equity

Shares(Rs. In crores)

DPS

2005 632.96 73.6716 8.59

2006 759.33 88.9823 8.53

2007 901.17 89.9266 10.02

2008 1227.7 111.2687 11.03

2009 1224.58 111.325 11

Interpretation:

Here the Dividend Per Share is increasing year after year except a little decline in 2009.otherwisethe dividend per share ratio of the bank is quite satisfactory which shows the bank has a gooddividend paying capacity.

NET PROFIT RATIO:

This ratio indicates the Net margin on a sale of Rs.100. It is calculated as follows:

Net Profit Ratio = Net Profit X 100

Net Sales

This ratio helps in determining the efficiency with which affairs of the businessare being managed. An increase in the ratio over the previous period indicatesimprovement in the operational efficiency of the business. The ratio is thus on effectivemeasure to check the profitability of business.

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Net Profit Ratio of ICICI Bank for the period of 2005-2009

21.3

18.42

13.52 13.512.08

0

5

10

15

20

25

2005 2006 2007 2008 2009

 Years

     R    a     t     i    o     (     %     )

Net Profit Ratio

Year Net Profit(Rs. In crores)

Sales(Rs. In crores)

Net Profit Ratio

(in %)

2005 2005.2 9409.9 21.3

2006 2540.07 13784.49 18.42

2007 3110.22 22994.29 13.52

2008 4157.73 30788.34 13.5

2009 3758.13 31092.55 12.08

Interpretation:Although both the sales and net profit have increased during the above period but the NetProfit Ratio of the bank is declining continuously. This is because of the reason that net profits have not increased in the same proportion as of the sales.

OPERATING PROFIT RATIO:

This ratio is calculated as follows:

Operating Profit Ratio = Operating Profit X100Net Sales

The difference between net profit ratio and net operating profit ratio is that net operating profit iscalculated without considering non-operating expenses and non-operating incomes. If we deductthis ratio from 100,the result will be operating ratio. Higher operating profit ratio enable theorganization to recoup non-operating expenses out of operating profits and provide reasonablereturn.

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Operating Profit Ratio of ICICI Bank for the period

of 2005-2009

31.4134.02

25.54 25.8528.7

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009

 Years

     R    a     t     i

Operating Profit Ratio

Year Operating Profit(Rs. In crores)

Sales(Rs. In crores)

Operating Profit

Ratio (in %)2005 2956 9409.9 31.41

2006 4690.67 13784.49 34.02

2007 5874.4 22994.29 25.54

2008 7960.69 30788.34 25.85

2009 8925.23 31092.55 28.7

Interpretation:In the year 2005 & 2006 the operating profit is 31.41% & 34.02% respectively. After that it has been consistently declined from the year 2007 till 2008 and again gaining momentum in 2009.This may be due to the reason that operating expenses have been increased more as compared tosales during the above period consequently reducing the operating profits.Therefore the bank should check on unnecessary operating expenses to correct this situation and to provide asufficient return.

RETURN ON NET WORTH:

It measures the profitability of the business in view of the shareholders. It judges the earningcapacity of the company and the adequacy of return on proprietor’s funds.Shareholders and

 potential investors are interested in this ratio.It is calculated as below:

Return On Net Worth = Net Profit After Interest AndTax x 100

Shareholder’s Funds

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Return On Net Worth Ratio of ICICI Bank for th

period of 2005-2009

15.54

11.2612.61

8.887.53

0

2

4

6

8

10

12

1416

18

2005 2006 2007 2008 2009

 Years

      R    a      t      i    o

Return On Net Wort

Year Net Profit After

Interest And Tax(Rs. In crores)

Shareholder's Fund

(Rs. In crores)

Return On Net

Worth (in %)

2005 2005.2 12899.97 15.54

2006 2540.07 22555.99 11.26

2007 3110.22 24663.26 12.61

2008 4157.73 46820.21 8.88

2009 3758.13 49883.02 7.53

Interpretation:

The net profit after interest and tax have increased slowly till the year 2008 followed by adownfall due to high interest payments,operating expenses and taxation liability.consequently thenetworth ratio has declined considerably and has reduced to more than half in the year 2009 thanit was in 2005.

RETURN ON CAPITAL EMPLOYED:

It establishes relationship between profit before interest and tax and capital employed. It indicatesthe percentage of return on the total capital employed in the business.This ratio is also known asReturn On Investment. It measures the overall efficiency and profitabilityof the business inrelation to investment made in business. It also shows how efficiently the resources are used inthe business.comparison of one unit with that of the other or performance in one year with that of the same unit is possible. It is calculated as below:

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Return On Capital Employed of ICICI Bank for the

period of 2005-2009

6.22

5.61

6.52

7.998.29

0

1

2

3

4

5

6

7

8

9

2005 2006 2007 2008 2009

 Years

     R    a     t     i    o

Return On Capital Employed

Year Net Profit Before

Interest And Tax(Rs. In crores)

Capital Employed

(Rs. In crores)

Return On Capital

Employed (in %)

2005 9098.09 146263.25 6.22

2006 12694.05 226161.17 5.61

2007 20006.54 306429.48 6.52

2008 28540.34 356899.69 7.992009 27842.9 335554.53 8.29

Interpretation:

The above table exhibit the return on capital employed ratio of the bank for last five years.Thisratio measures the earning of the net assets of the business. The ratio was 6.22% in year 2005.After that it rised to the tune of 5.61%,6.52%,7.99% and 8.29% in year 2006, 2007, 2008 andyear 2009 respectively. It lead to the conclusion bank rising but very little proportion of return oncapital employed.

DEBT- EQUITY RATIO:

The Debt-Equity ratio is calculated to find out the long-term financial position of the firm.Thisratio indicates the relationship between long-term debts and shareholder’s funds.The soundness of long-term financial policies of a firm can be determined with the help of this ratio.It helps to assess the soundness of long-term financial policies of a business.It also helps todetermine the relative stakes of outsiders and shareholders.Long-term creditors can assess thesecurity of their funds in a business.it indicates to what extent a firm depends upon lenders to

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meet its long-term financial requirements.A low Debt-Equity ratio is considered better from the point of view of creditors.

Debt Equity ratio of ICICI Bank for the period o

2005-2009

11.99

10.14

12.97

7.536.6

0

2

4

6

8

10

12

14

2005 2006 2007 2008 2009 Years

      R    a      t      i    o

Debt Equity Ratio

Year Debt(Rs. In crores)

Equity(Rs. In crores)

Debt Equity Ratio

2005 154759.45 12899.97 11.99

2006 228832.96 22555.99 10.14

2007 319994.86 24663.26 12.97

2008 352974.87 46820.21 7.532009 329417.94 49883.02 6.6

Interpretation:

The ratio shows the extent to which funds have been provided by long-term creditors ascompared to the funds provided by the owners.Here the Debt-Equity ratio for the above period is always high.this shows that the bank is more relying on outside funds as comparedto internal sources of capital,in its capital structure. From the long-term lenders point of viewthis ratio is not satisfactory.

PROPRIETORY RATIO:

It is also called shareholders equity to total equity ratio or net worth to total assets ratio or equityratio.It compares the shareholder’s funds to total assets.It is calculated by dividing shareholder’sfunds by total assets.

Proprietory Ratio = Shareholder’s FundTotal Assets

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It helps to determine the long-term solvency of a company.This ratio measures the protectionavailable to the creditors.Higher the ratio,lesser is the likelihood of insolvency in future,as themanagement has to use lessor debts and vice versa.Thus,this ratio is of great importance to thecreditors.

Proprietory Ratio of ICICI Bank for the period of 

2005-2009

0.070.08

0.07

0.120.13

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

2005 2006 2007 2008 2009

 Years

     R    a     t     i

Proprietory Ratio

Years Shareholder's Funds(Rs. In crores)

Total Assets(Rs. In crores)

Proprietory Ratio

2005 12899.97 167659.4 0.07

2006 22555.99 251388.95 0.08

2007 24663.26 344658.11 0.07

2008 46820.21 399795.07 0.12

2009 49883.02 379300.96 0.13

Interpretation:

Above table exhibits the proprietary ratio of the bank for last five years . It was 7% in 2005,After that was 8% in year 2006. Similarly it was once again reduced to 7 % in the year 2007. After 2007 it registered increase and was 12% and 13% in the year 2008 and 2009 respectively. Henceit leads to the conclusion owners have less than 13% stake in the total assets of the bank. It is nota good sign as far the long term solvency is concerned.

FIXED ASSETS TURNOVER RATIO:

It is also called as Sales to Fixed Assets Ratio.It measures the efficient use of fixed assets.Thisratio is a measure of efficient use of fixed assets.it is calculated as:

Fixed Assets Turnover Ratio = Cost of goods sold or SalesNet Fixed Assets

 

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It measures the efficiency and profit earning capacity of the business.Higher the ratio,greater isthe intensive utilization of fixed assets and a lower ratio shows under utilization of the fixedassets.This ratio has a special importance for manufacturing concerns where investment in fixedassets,is vey high and the profitability is significantly dependent on the utilization of these assets.

Fixed assets Turnover Ratio of ICICI Bank for th

period of 2005-2009

2.33

3.46

5.86

7.498.17

0

1

2

3

4

5

6

7

8

9

2005 2006 2007 2008 2009

 Years

      R    a      t      i    o Fixed assets Turnove

Ratio

Year Sales(Rs. In crores)

Net Fixed Assets(Rs. In crores)

Fixed Assets

Turnover Ratio

2005 9409.9 4038.04 2.33

2006 13784.49 3980.72 3.46

2007 22994.29 3923.42 5.862008 30788.34 4108.89 7.49

2009 31092.55 3801.62 8.17

Interpretation:Here the fixed assets employed in the business shows a decreasing trend except in the year 2008where fixed assets have again increased.This may be due to increase in rate of depreciation insubsequent years. Neverthless,the fixed assets turnover ratio has been consistently increasing.Itindicates that fixed assets have been effectively used in the business without much additionalinvestment in the period of study and also the capital is not blocked in fixed assets.

CREDIT-DEPOSIT RATIO:This ratio is very important to assess the credit performance of the bank. The ratio shows the

relationship between the amount of deposit generated by the bank has well as their deployment

towards disbursement of loan and advances. Higher credit deposit ratio shows overall good

efficiency and performance of any banking institution.

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4.CASH FLOW STATEMENT OF ICICI BANK 

Cash Flow ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 3096.61 3648.04 5056.10 5116.97 5345.32

Net Cash From OperatingActivities

4652.93 23061.95 -11631.15 -14188.49 1869.21

Net Cash (used in)/fromInvesting Activities

-7893.98 -18362.67 -17561.11 3857.88 6150.73

Net Cash (used in)/from FinancingActivities

7350.90 15414.58 29964.82 1625.36 1382.62

Net (decrease)/increase In Cashand Cash Equivalents

4110.25 20081.10 683.55 -8074.57 8907.13

Opening Cash & Cash Equivalents 12929.97 17040.22 37357.58 38041.13 29966.56

Closing Cash & Cash Equivalents 17040.22 37121.32 38041.13 29966.56 38873.69

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Chapter 5

FINDINGS,SUGGESTIONS

& CONCLUSION

Findings Profit before tax for the year ended March 31, 2009 (FY2009) was Rs. 5,117 crore

(US$ 1,009 million), compared to Rs. 5,056 crore (US$ 997 million) for the year ended March 31, 2008 (FY2008).

Profit after tax for FY2009 was Rs. 3,758 crore (US$ 741 million) compared to

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Rs. 4,158 crore (US$ 820 million) for FY2008 due to the higher effective tax rateon account of lower proportion of income taxable as dividends and capital gains.

 Net interest income increased 15% from Rs. 7,304 crore (US$ 1,440 million) for FY2008 to Rs. 8,367 crore (US$ 1,650 million) for FY2009. While the advances

declined marginally year-on-year, the net interest income increased due toimprovement in net interest margin from 2.2% in FY2008 to 2.4% in FY2009.

Operating expenses (including direct marketing agency expenses) decreased 14%to Rs. 6,835 crore (US$ 1,348 million) in FY2009 from Rs. 7,972 crore (US$1,572 million) in FY2008. The cost/average asset ratio for FY2009 was 1.8%compared to 2.2% for FY2008.

During the year, the Bank has pursued a strategy of prioritizing capitalconservation, liquidity management and risk containment given the challengingeconomic environment. This is reflected in the Bank’s strong capital adequacyand its focus on reducing its wholesale term deposit base and increasing its CASA

ratio. The Bank is maintaining excess liquidity on an ongoing basis. The Bank hasalso placed strong emphasis on efficiency improvement and cost rationalization.The Bank continues to invest in expansion of its branch network to enhance itsdeposit franchise and create an integrated distribution network for both asset andliability products.

In line with the above strategy, the total deposits of the Bank were Rs. 218,348 crore(US$ 43.0 billion) at March 31, 2009, compared to Rs. 244,431 crore (US$ 48.2 billion)at March 31, 2008. The reduction in term deposits by Rs. 24,970 crore (US$ 4.9 billion)was primarily due to the Bank’s conscious strategy of paying off wholesale deposits.During Q4-2009, 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. TheCASA ratio improved to 28.7% of total deposits at March 31, 2009 from 26.1% at March31, 2008.

The branch network of the Bank has increased from 755 branches at March 31,2007 to 1,438 branches at April 24, 2009. The Bank is also in the process of opening 580 new branches which would expand the branch network to about2,000 branches, giving the 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 Bank decreased marginally to Rs. 218,311 crore (US$ 43.0 billion) at March

31, 2009 from Rs. 225,616 crore (US$ 44.5 billion) at March 31, 2008.

Liquidity position

The liquid ratio of the bank in the year 2005,2006 and 2009 is 0.60,0.67and 0.68respectively and the year 2007 and 2008 liquid ratio is 0.97 and 0.88 respectively

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which is close to 1.Though it is not equal to the ideal liquid ratio of 1:1 but still itsunder control. So in nut shell, it can be concluded that the liquidity position of the bank is quite satisfactory.

Capital adequacy and return on capital employed

The Bank’s capital adequacy at March 31, 2009 as per Reserve Bank of India’srevised guidelines on Basel II norms was 15.5% and Tier-1 capital adequacy was11.8%, well above RBI’s requirement of total capital adequacy of 9.0% and Tier-1capital adequacy of 6.0%. The above capital adequacy takes into account the impactof dividend recommended by the Board.

Also the capital is being effectively utilized in the bank as it shows better return oncapital employed over years.

Asset quality

At March 31, 2009, the Bank’s net non-performing asset ratio was 1.96%. During theyear the 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 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 bank a much beneficial option and will be reluctant to withdraw capital for a longtime.

Earnings per share

The earnings per share for the period under study also shows a promising increase.itsuggests that 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 bank has performed satisfactorily as regardto granting loans and advances to generate income. It suggests that credit performance is

good and the bank is doing its business good by fulfilling its major objective as regards togranting loans and accepting deposits.

Conclusion

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On the basis of various techniques applied for the financial analysis of ICICI Bank wecan arrive at a conclusion that the financial position and overall performance of the bank is satisfactory. Though the income of the bank has increased over the period but not in thesame pace as of expenses. But the bank has succeeded in maintaining a reasonable profitability position.

The bank has succeeded in increasing its share capital also which has increased around50% in the last 5 years. Individuals are the major shareholders. The major achievement of the bank has been a tremendous increase in its deposits, which has always been its mainobjective. Fixed and current deposits have also shown an increasing trend.

Equity shareholders are also enjoying an increasing trend in the return on their capital.Though current assets and liabilities (current liquidity) of the bank is not so satisfactory but bank has succeeded in maintaining a stable solvency position over the years. As far asthe ratio of external and internal equity is concerned, it is clear that bank has been using

more amount of external equity in the form of loans and borrowings than owner’s equity.Bank’s investments are also showing an increasing trend. Due to increase in advances,the interest received by the bank from such advances is proving to be the major source of income for the bank.

Suggestions

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Although the short term liquidity position is quite satisfactory as per revealed byliquid ratio but the current ratio is below the ideal ratio of 2:1.So the bank shouldmake efforts to increase its current assets to maintain a safety margin and tomaintain a better liquidity position.

The profitability of the bank for the period under study is not satisfactory. Profitsare increasing but not with same pace as of the expenditure due to higher relianceon 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 onexternal equities for meeting capital requirements. Consequently, the interestexpenses will decline and profits will increase which is good for the bank.Similarly non productive expenses should be curtailed to improve profitability.

Higher trend of credit deposit ratio reveals that the bank has performedsatisfactorily as regard to granting loans and advances to generate income. Itsuggests that the credit performance of bank is good and it is performing its

 business well by fulfilling the major objective of granting credit and acceptingdeposit. So in order to have more creditability in the market the bank shouldmaintain its credit deposit ratio.

Though the bank has been successful in increasing it’s deposits but to further improve upon such situation it can introduce 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 earnhigher amount of profits.

The bank is having a greater reliance on debt capital. The increasing reliance onexternal equities may prove hazardous in the long run. So in order to remedy thissituation bank should increase its focus on internal equities and other sources of internal financing.

Bank can also think for improving it’s day-to -day service to its clients. Suchservice can be improved by providing prompt service and showing an attitude of co-operation to its clients. It will help to give a kind of confidence to the publicand build a better public image.

To achieve the objective of Rural development it should open more and more branches in different rural areas of the country. It will facilitate in providing helpto rural poor farmers and other living below the poverty line. Bank can appointcommission agents for different area who can encourage general public to investin the capital of the bank and make more deposits in ICICI Bank.

The bank should simplify the procedure of advances for quick disbursement.

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To achieve organizational success a proper independent working atmosphereshould be developed to achieve desired objective more effectively.

Last but not least, bank should adopt branch automation experiment to control theoperational cost.

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CHAPTER 6 

BIBLIOGRAPHY 

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BIBLIOGRAPHY

Books Reffered:

Accountancy. R.K. Mittal,A.K.Jain.

Financial Management- Theory and Practice. Shashi.K.Gupta , R.K. Sharma.

Essentials of Corporate Finance 2nd edition ,Irwin /McGraw-Hill.Ross, S.A.,R.W.Westerfield and B.D. Jordan.

Basic Financial Management ,8th edition ,Prentice -Hall,Inc. Scott, D.F., J.DMartin, J.W. Petty and A.Keown.

Internet websites:

Www.Icicibank.Com

Www.Moneycontrol.Com

WWW.Money.Rediff.Com

Www.Wikipedia.Org

Www.Google.Com

Www.Scribd.Com

Www.Managementparadise.Com