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ANALYSIS OF FINANCIAL

STATEMENT OF ICICI BANK

SUMMER TRAINING PROJECT REPORT ON

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FORBACHELOR IN BUSINESS ADMINISTRATION (GEN)

(Session)

PREPARED BY:

YUGANKAR

BBA(GEN)

ENROLL NO.

UNDER THE GUIADENCE OF:MRS. RUCHI JAIN

BERI INSTITUTE OF TECHNOLOGY RESEARCH

AFFILATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

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ACKNOWLEDGEMENT

"Accomplishment of any task necessarily depends upon the willingness andenthusiastic contribution of time and energy of many people."

From the starting till the completion of this project,there are many people without whose assistance all my efforts would have

been fruitless. I, therefore, acknowledge all who generously helped me bysharing their time, experience and knowledge with me without which this

project would have never been accomplished.

Words cant express my sincere thanks to the entire

faculty ofBITTR, under the prestigious GGSIPU who had been a constantsource of guidance throughout my project period.

I extend my profound thanks to

JHA SIR for his invaluableguidance and support.I must express my gratitude to

MRS. RUCHI JAIN (my project guide) whose perceptive

guidance, constant encouragement, constructive criticism and affection werethe light of guidance during my tenure of my work.

Finally, I would like to state that the project not onlyfulfilled an academic requirement, but would also help me in futureendeavors in the years to come.

YUGANKAR

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EXECUTIVE SUMMARY

In any organization, the two important financial statements are theBalance

sheet & Profit and loss account ofthe business. Balance sheet is a statement

of the financial position of an enterprise at a particular point of time. Profit and loss

account shows the net profit or net loss of a company for a specified period of time.

When these statements of the last few year of any organization are studied and

analyzed, significant conclusions may be arrived regarding the changes in the

financial position, the important policies followed and trends in profit and loss etc.Analysis and interpretation of the financial statement has now become an important

technique of credit appraisal. The investors, financial experts, management executives

and the bankers all analyze these statements. Though the basic technique of appraisal

remains the same in all the cases but the approach and the emphasis in analysis vary.

A banker interprets the financial statement so as to evaluate the financial soundness

and stability, the liquidity position and the profitability or the earning capacity of

borrowing concern. Analysis of financial statement is necessary because it help indepicting the financial position on the basis of past and current records. Analysis of

financial statement helps in making the future decision and strategies. Therefore, it is

very necessary for every organization whether it is a financial or manufacturing etc. to

make financial statement and to analyse it.

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CHAPTER 1

INTRODUCTION

Industrial Review

BANKING SCENARIO

The Indian Banking industry, which is governed by the Banking Regulation Act of India,

1949 can be broadly classified into two major categories, non-scheduled banks and

scheduled banks. Scheduled banks comprise commercial banks and the co-operative

banks. In terms of ownership, commercial banks can be further grouped into nationalized

banks, the State Bank of India and its group banks, regional rural banks and private sector

banks (the old/ new domestic and foreign). These banks have over 67,000 branches

spread across the country.

The first phase of financial reforms resulted in the nationalization of 14 major banks in

1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in

a significant growth in the geographical coverage of banks. Every bank had to earmark a

minimum percentage of their loan portfolio to sectors identified as priority sectors. The

manufacturing sector also grew during the 1970s in protected environs and the banking

sector was a critical source. The next wave of reforms saw the nationalization of 6 more

commercial banks in 1980. Since then the number of scheduled commercial banks

increased four-fold and the number of bank branches increased eight-fold.

After the second phase of financial sector reforms and liberalization of the sector in the

early nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete

with the new private sector banks and the foreign banks. The new private sector banks

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first made their appearance after the guidelines permitting them were issued in January

1993. Eight new private sector banks are presently in operation. These banks due to their

late start have access to state-of-the-art technology, which in turn helps them to save on

manpower costs and provide better services.

During the year 2000, the State Bank Of India (SBI) and its 7 associates accounted for a

25 percent share in deposits and 28.1 percent share in credit. The 20 nationalized banks

accounted for 53.2 percent of the deposits and 47.5 percent of credit during the same

period. The share of foreign banks (numbering 42), regional rural banks and other

scheduled commercial banks accounted for 5.7 percent, 3.9 percent and 12.2 percent

respectively in deposits and 8.41 percent, 3.14 percent and 12.85 percent respectively incredit during the year 2000.

Current Scenario

The industry is currently in a transition phase. On the one hand, the PSBs, which are the

mainstay of the Indian Banking system are in the process of shedding their flab in terms

of excessive manpower, excessive non Performing Assets (Npas) and excessive

governmental equity, while on the other hand the private sector banks are consolidating

themselves through mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking industry assets

are saddled with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from

traditional sources, lack of modern technology and a massive workforce while the new

private sector banks are forging ahead and rewriting the traditional banking business

model by way of their sheer innovation and service. The PSBs are of course currently

working out challenging strategies even as 20 percent of their massive employee strength

has dwindled in the wake of the successful Voluntary Retirement Schemes (VRS)

schemes.

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per cent. That's not too different from the historic growth rate of 17 per cent over 30

years. I acknowledge that small savings pose competition; they have a lot of arbitrage.

But, interestingly, mutual funds were not competitors. MFs, I find, are competitors when

interest rates decline; they don't have ability to compete when rates rise.

Also insurance companies, which saw money because of the tax incentives, could be

under pressure with the incentives going.

Today, ICICI Bank, India has the largest market share and value among all banks in retail

or consumer financing. ICICI Bank is the largest issuer of credit cards in India. It was the

first bank to offer a wide network of ATM's and had the largest network of ATM's till

2005,before SBI caught up with it.

ICICI bank now is widely seen as a sophisticated bank able to take on many global banks

in the Indian market. The bank is expanding in overseas markets. It has operations in the

UK, Hong Kong, Singapore and Canada. It acquired a small bank in Russia recently. It

has tie-ups with major banks in the US and China. The bank is aggressively targeting the

NRI (Non Resident Indian) population for expanding its business.

The global opportunity spectrum is changing dramatically, and in the next three years,

our global business will contribute one-third of our book -- topline and bottomline. Today

it's about 10-12 per cent. The NRI is a great customer and the other is the Indian

corporate who is globalising -- either in the trade business or is setting up businesses

abroad.

Our USP (unique selling proposition) is our technology; we can get him to talk to his

constituents online. The NRI is an interesting link because today he has tremendous

needs in India; he wants to remit money, buy a home, especially the H1 visa guys. This

year 10 per cent of our home loans will be to NRIs.

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Company Profile

ICICI BANK

ICICI Bank is Indias second-largest bank with total assets of 3,997.95 billion

(US$ 100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the

year ended March 31, 2008. ICICI Bank is the most valuable bank in India in terms

of market capitalization and is ranked second amongst all the companies listed

on the Indian stock exchanges. In terms of free float market capitalization*.

The Bank has a network of about 1308branches and 3,950 ATMs in India and presence in

18 countries. ICICI Bank offers a wide range of banking products and financial services

to corporate and retail customer through a variety of delivery channels and through its

specialized subsidiaries and affiliates in the areas of investment banking, life and non-life

insurance, venture capital and asset management. The Bank currently has subsidiaries in

the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong,

Sri Lanka and Dubai International Finance Center and representative offices in the United

States, United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and

Indonesia. UK subsidiary has established a branch in Belgium.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange

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(BSE) and the National Stock Exchange (NSE) of India Limited and its American

Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

HISTORY

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 institution for providing medium-term and long-term project financingto Indian businesses.

1994 ICICI established Banking Corporation as a banking subsidiary. formerly

Industrial Credit and Investment Corporation of 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,credit cards, car loans etc.

2001 ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar

bank, and had acquired Chettinad Mercantile Bank(est. 1933) and Illanji Bank

(established 1904) in the 1960s.

2002 The Boards of Directors of ICICI and ICICI Bank approved the reverse

merger of ICICI, ICICI Personal Financial Services Limited and ICICI Capital

Services Limited, into ICICI Bank. After receiving all necessary regulatory

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http://en.wikipedia.org/wiki/Bank_of_Madurahttp://en.wikipedia.org/wiki/Chettiarhttp://en.wikipedia.org/w/index.php?title=Chettinad_Mercantile_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Illanji_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICICI_Personal_Financial_Services_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICICI_Capital_Services_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICICI_Capital_Services_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Bank_of_Madurahttp://en.wikipedia.org/wiki/Chettiarhttp://en.wikipedia.org/w/index.php?title=Chettinad_Mercantile_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Illanji_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICICI_Personal_Financial_Services_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICICI_Capital_Services_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICICI_Capital_Services_Limited&action=edit&redlink=1


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approvals, ICICI integrated the group's financing and banking operations, both

wholesale and retail, into a single entity.

Also in 2002, ICICI Bank bought the Shimla and Darjeeling branches that

Standard Chartered Bankhad inherited when it acquired Grindlays Bank.

ICICI started its international expansion by opening representative offices inNew

Yorkand London.

2003 ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in

the UK it established an alliance with Lloyds TSB. It also opened an Offshore

Banking Unit (OBU) in Singapore and representative offices in Dubai and

Shanghai.

2004 ICICI opens a rep office in Bangladesh to tap the extensive trade between

that country, India and South Africa.

2005 ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with

about US$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 International Financial Centre and in Hong

Kong.

2006 ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI opened

representative offices in Bangkok, Jakarta, and Kuala Lumpur.

2007 ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in

Maharashtra State, and which had 158 branches in Maharashtra and another 31 in

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http://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Darjeelinghttp://en.wikipedia.org/wiki/Standard_Chartered_Bankhttp://en.wikipedia.org/wiki/Grindlays_Bankhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Balabanovohttp://en.wikipedia.org/wiki/Kalugahttp://en.wikipedia.org/wiki/Moscowhttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Antwerphttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Bangkokhttp://en.wikipedia.org/wiki/Jakartahttp://en.wikipedia.org/wiki/Kuala_Lumpurhttp://en.wikipedia.org/wiki/Sanglihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Darjeelinghttp://en.wikipedia.org/wiki/Standard_Chartered_Bankhttp://en.wikipedia.org/wiki/Grindlays_Bankhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Balabanovohttp://en.wikipedia.org/wiki/Kalugahttp://en.wikipedia.org/wiki/Moscowhttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Antwerphttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Bangkokhttp://en.wikipedia.org/wiki/Jakartahttp://en.wikipedia.org/wiki/Kuala_Lumpurhttp://en.wikipedia.org/wiki/Sanglihttp://en.wikipedia.org/wiki/Maharashtra


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Karnataka State. Sangli Bank had been founded in 1916 and was particularly

strong in rural areas.

ICICI also received permission from the government ofQatarto open a branch in

Doha.

ICICI Bank Eurasia opened a second branch, this time in St. Petersburg.

2008 The US Federal Reservepermitted ICICI to convert its representative office

inNew Yorkinto a branch.

ICICI also established a branch in Frankfurt.

NATURE OF BUSINESS:

ICICI is a financial intermediary which brings together the savers and borrowers in the

economic system. It collects funds from surplus units and lends the same to those units

whose income exceeds its expenditure. In the pursuit of these objectives the ICICI Bank

Limited (ICICI Bank) offers products and services in the areas of commercial banking to

retail and corporate customers (both domestic and international), treasury and investment

banking and other products, such as insurance and asset management. Its commercial

banking operations for retail customers consist of retail lending and deposits, distribution

of third-party investment products and other fee-based products and services, as well asissuance of unsecured redeemable bonds. ICICI Bank provides a range of commercial

banking and project finance products and services, including loan products, fee and

commission-based products and services, deposits and foreign exchange and derivatives

products to corporations, growth-oriented middle market companies and small and

medium enterprises.

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ONWNERSHIP TYPE

JOINT STOCK COMPANY:

ICICI BANK LIMITED, is the joint stock company which is incorporated under the

Companies Act, 1956 and licensed as a bank under the Banking Regulation Act, 1949

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)

are listed on the New York Stock Exchange (NYSE).

VISION

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

global bank.

To be the preferred brand for total financial and banking solutions for both corporates and

individuals

To be the dominant Life, Health and Pensions player built on trust by world-class people

and service.

This we hope to achieve by:

Understanding the needs of customers and offering them superior products and

service

Leveraging technology to service customers quickly, efficiently and conveniently

Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

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Undertaken by ICICI Bank's Social Initiatives Group, the bank has decided to identify

effective and scalable strategies for delivering the services required to impact female

nutritional status to tackle the incidence of low birth babies.

Appointing several partners to work on this project an ICICI Bank official says, ``This is

going to be a significant MISSION supported by the bank and the aim to understand

whether a suitably trained health worker working with the public health system and the

integrated child development scheme can provide quality services to impact low birth

incidence at the village level.''

The MISSION is based in Ranchi district in Jharkhand and is being implemented through

a partnership between the Department of Health, Government of Jharkhand, Krishi Gram

Vokas Kendra(KGVK) and Care, both of whom are NGOs based in Jharkhand and the

Child in Need Institute (CINI), an NGO based in West Bengal.

Adds the ICICI Bank official, ``ICICI Bank needs to participate in the all round

development of the country by focusing on some of its fundamental problems.

It seeks to perform this role primarily as a funding agency, through its Social Initiatives

Group.''

ICICI Bank's Social Initiative Group's (SIG) mission is ``to identify and support

initiatives designed to improve the capacities of the poorest of the poor to participate in

the larger economy.''

The group seeks to achieve its mission by supporting initiatives that are cost-effective,

capable of large-scale replication and have the potential for near and long-term impact.

``ICICI Bank believes in strengthening or supplementing existing systems rather than

investing in parallel structures.

The purpose is also to build long-term relationships with sustainable partners,'', adds the

bank official.

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In the past, ICICI Bank has undertaken projects in the area of elementary education and

micro financial services.

BOARD OF DIRECTORS

Mr. Narendra Murkumbi --------- Director

Mr. Madhabi Puri Buch --------- Executive director

Mr. P M Sinha ---------- Director

Mr. M K Sharma ---------- Director

Mr. Sonjoy Chatterjee ----------- Executive director

Mr. Anupam Puri ----------- Director

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Mr. T S Vijayan ----------- Director

Mr. K V Kamath ----------- Managing Dtr & CEO

Mr. N Vaghul ----------- Chairman

Mr. Marti G Subrahmanyam ----------- Director

Mr. Sridar Iyengar ------------ Director

Mr. Lakshmi N Mittal ------------ Director

Mr. V Prem Watsa ------------ Director

Mr. Chanda D Kochhar ------------ Joint Managing Dtr

Mr. V Vaidyanathan ------------- Executive Director

Mr. Arun Ramanathan ------------- Director

REGISTERED OFFICE

SUBSIDIARIES

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ICICI SECURITIES

ICICI Securities, Ltd. operates as an investment banking company in India. It offers

corporate finance services, including advisory services related to joint ventures, mergers,

acquisitions, divestitures, spin-offs, and leveraged buyouts; equity capital markets

services, such as initial public offerings, rights offerings, convertible offerings, and

private placement and international offerings for unlisted and listed entities; private

equity/venture capital services; and infrastructure advisory services. The company also

provides services related to fixed income and money markets, which include designing

instruments, pricing, structuring, documentation, and placing the issue with institutional

investors; debt trading, including corporate bond trading and derivatives trading; and debt

research services. In addition, ICICI Securities provides research, sale, and trading

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services related to equities markets. Further, the company deals in securities markets

transactions in the United States, as well as provides research and investment advice to

the U.S. investors. Additionally, it offers corporate advisory services in the United

Kingdom and Singapore.

Today ICICI Securities Ltd is the largest equity house in the country providing end-to-

end solutions (including web-based services) through the largest non-banking distribution

channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI

Securities (I-Sec) has a dominant 74

position in its core segments of its operations - Corporate Finance including Equity

Capital Markets Advisory Services, Institutional Equities, Retail and Financial Product

Distribution.

With a full-service portfolio, a roster of blue-chip clients and performance second to

none, we have a formidable reputation within the industry. Today ICICI Securities is

among the leading Financial Institutions both on the institutional as well as retail side.

Headquartered in Mumbai, I-Sec operates out of several locations in India.

ICICI Securities Inc., the stepdown wholly owned US subsidiary of the company is a

member of the National Association of Securities Dealers, Inc. (NASD). As a result of

this membership, ICICI Securities Inc. can engage in permitted activities in the U.S.

securities markets. These activities include Dealing in Securities and Corporate Advisory

Services in the United States and providing research and investment advice to US

investors.

ICICI Securities Inc. is also registered with the Financial Services Authority, UK (FSA)

and the Monetary Authority of Singapore (MAS). The company is based in Mumbai,

India. ICICI Securities, Ltd. operates as a subsidiary of ICICI Bank Limited.

ICICI PRUDENTIAL LIFE INSURANCE

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ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of

India's foremost financial services companies-and Prudential plc - a leading international

financial services group headquartered in the United Kingdom. Total capital infusion

stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc

holding 26%.

We began our operations in December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of

2099 branches (inclusive of 1,116 micro-offices), over 276,000 advisors; and 18

bancassurance partners.

ICICI Prudential is the first life insurer in India to receive a National Insurer Financial

Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI

Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic

Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our

distribution, product range and customer base, we continue to tirelessly uphold our

commitment to deliver world-class financial solutions to customers all over India.

ICICI VENTURE

ICICI Venture is one of the largest and most successful private equity firms in India with

funds under management in excess of USD 2 billion.

ICICI Venture, over the years has built an enviable portfolio of companies across sectors

including pharmaceuticals, Information Technology, media, manufacturing, logistics,

textiles, real estate etc thereby building sustainable value.

It has several firsts to its credit in the Indian Private Equity industry. Amongst them are

Indias first leveraged buyout (Infomedia), the first real estate investment (Cyber

Gateway), the first mezzanine financing for a acquisition (Arch Pharmalabs) and the first

royalty-based structured deal in Pharma Research & Development (Dr Reddys).

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ICICI Venture is a subsidiary of ICICI Bank, the largest private sector financial services

group in India.

ICICI LOMBARD

ICICI Lombard is a leading insurance company that is a joint undertaking between two

major organizations - ICICI Bank Limited and Fairfax Financial Holdings Limited, a

Canada based company. They have a share amount of 74:26. ICICI Lombard has

received approvals from various pioneer organizations of finance world.

This ISO 9001: 2000 certified company is the first general insurance company in India.

ICICI Lombard General Insurance Company Limited offers the best insurance coverage

and provides extensive customer care services. With its registered office at Mumbai,

ICICI Lombard is spread all over the country. This insurance company has its office at 65

different locations of India.

ICICI Lombard is the leading private general insurance company in India. It is known for

its simple and quick documentation. Its claim to fame is its extremely fast mode of

settlement. Online policies are offered almost instantly. The product line of ICICI

Lombard General Insurance Company Limited is extensive and covers almost all the

fields.

The security system of the data transfer is made tight by 128-bit encryption. It is the first

company to have online interface for providing digitally signed documents.

This Insurance Company has been honored with numerous prestigious awards. It received

the following awards:

Economic Times Avaya Global Connect Customer Responsiveness Award 2006

Best Housing Insurance in the Smart Living Awards by 360 degrees, a Times of

India Group subsidiary, in Nov 2006

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Gold Shield for "Excellence in Financial Reporting" by the ICAI (Institute of

Chartered Accountants of India), 2006

General Insurance Company of the Year at the 10th Asia Insurance Industry

Awards

ICICI Lombard offers a range of products and services, which include:

Health Insurance

Home Insurance

Motor Insurance

Overseas Travel insurance

Student Medical Insurance

Domestic Travel Insurance

Fire Insurance

Marine Insurance

Industrial Insurance

Corporate Insurance

Liability Insurance

Credit Insurance

Shop Insurance

COMPETITORS

Top ICICI Bank Competitors are:

STATE BANK OF INDIA

PUNJAB NATIONAL BANK

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CANARA BANK

Canara Bank has a can-do attitude about banking in India. One of India's largest banks,

Canara Bank (also known as CanBank) has a network of more than 2,500 branches

throughout India and branches in Hong Kong and London. All of Canara Bank's branches

-- including those located in rural areas -- are computerized, in a country where it is not a

given that banks can make such a claim. (The bank considers 30% of its branches to be

located in rural areas.) The modernization of all branches allows the bank to offer its

customers networked ATMs, telebanking, internet banking, and debit card services. Other

services include asset management and factoring. The financial institution is 73% owned

by India's government.

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MARKET SHARE

The fact that the top 8 banks account for barely 54 per cent of the market share suggests

that several smaller players occupy the remaining 46 per cent.

25

FY04 (Rs bn)

Advances Market share

SBI 1,955 22.7%

ICICI Bank 631 7.3%

Canara Bank 476 5.5%

PNB 472 5.5%

Bank of India 458 5.3%

Bank of Baroda 356 4.1%

HDFC Bank 177 2.1%

Standard Chartered 162 1.9%

Total 4,687 54.4%


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ICICI Banks global network, today, spans 18countries.

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Chapter 2- Conceptual discussion

Finance is the science of funds management. The general areas of finance are businessfinance,personal finance, andpublic finance. Finance includes saving money and oftenincludes lending money. The field of finance deals with the concepts of time, money, risk

and how they are interrelated. It also deals with how money is spent and budgeted.

One facet of finance is through individuals and business organizations, which depositmoney in a bank. The bank then lends the money out to other individuals or corporationsfor consumption or investment and charges interest on the loans.

Loans have become increasingly packaged for resale, meaning that an investor buys theloan (debt) from a bank or directly from a corporation. Bonds are debt instruments sold toinvestors for organizations such as companies, governments or charities. The investor canthen hold the debt and collect the interest or sell the debt on a secondary market. Banksare the main facilitators of funding through the provision of credit, although private

equity, mutual funds, hedge funds, and other organizations have become important asthey invest in various forms of debt. Financial assets, known as investments, arefinancially managed with careful attention to financial risk management to controlfinancial risk. Financial instruments allow many forms of securitized assets to be tradedon securities exchanges such as stock exchanges, including debt such as bonds as well asequity in publicly traded corporations.

Central banks, such as the Federal Reserve System banks in the United States and Bankof England in the United Kingdom, are strong players in public finance, acting as lendersof last resort as well as strong influences on monetary and credit conditions in theeconomy

Financial analysis (also referred to as financial statement analysis or accounting

analysis) refers to an assessment of the viability, stability and profitability of a business,

sub-business or project.

It is performed by professionals who prepare reports using ratios that make use of

information taken from financial statements and other reports. These reports are usuallypresented to top management as one of their bases in making business decisions. Based

on these reports, management may:

Continue or discontinue its main operation or part of its business;

Make or purchase certain materials in the manufacture of its product;

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Acquire or rent/lease certain machineries and equipment in the production of its

goods;

Issue stocks or negotiate for a bank loan to increase its working capital;

Make decisions regarding investing or lending capital;

Other decisions that allow management to make an informed selection on various

alternatives in the conduct of its business.

Goals

Financial analysts often assess the firm's:

1. Profitability - its ability to earn income and sustain growth in both short-term and

long-term. A company's degree of profitability is usually based on the income statement,

which reports on the company's results of operations;

2. Solvency - its ability to pay its obligation to creditors and other third parties in the

long-term;

3. Liquidity - its ability to maintain positive cash flow, while satisfying immediate

obligations;

Both 2 and 3 are based on the company's balance sheet, which indicates the financial

condition of a business as of a given point in time.

4. Stability- the firm's ability to remain in business in the long run, without having to

sustain significant losses in the conduct of its business. Assessing a company's stability

requires the use of both the income statement and the balance sheet, as well as other

financial and non-financial indicators.

Methods

Financial analysts often compare financial ratios (of solvency, profitability, growth, etc.):

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Past Performance - Across historical time periods for the same firm (the last 5

years for example),

Future Performance - Using historical figures and certain mathematical and

statistical techniques, including present and future values, This extrapolation

method is the main source of errors in financial analysis as past statistics can be

poor predictors of future prospects.

Comparative Performance - Comparison between similar firms.

These ratios are calculated by dividing a (group of) account balance(s), taken from the

balance sheet and / or the income statement, by another, for example :

Net income / equity = return on equity (ROE)

Net income / total assets = return on assets (ROA)

Stock price / earnings per share = P/E ratio

Comparing financial ratios is merely one way of conducting financial analysis. Financial

ratios face several theoretical challenges:

They say little about the firm's prospects in an absolute sense. Their insights about

relative performance require a reference point from other time periods or similar

firms.

One ratio holds little meaning. As indicators, ratios can be logically interpreted in

at least two ways. One can partially overcome this problem by combining several

related ratios to paint a more comprehensive picture of the firm's performance.

Seasonal factors may prevent year-end values from being representative. A ratio's

values may be distorted as account balances change from the beginning to the end

of an accounting period. Use average values for such accounts whenever possible.

Financial ratios are no more objective than the accounting methods employed.

Changes in accounting policies or choices can yield drastically different ratio

values.

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They fail to account for exogenous factors like investor behavior that are not

based upon economic fundamentals of the firm or the general economy

(fundamental analysis).

Financial analysts can also use percentage analysis which involves reducing a series of

figures as a percentage of some base amount. For example, a group of items can be

expressed as a percentage of net income. When proportionate changes in the same figure

over a given time period expressed as a percentage is known as horizontal analysis.

Vertical or common-size analysis, reduces all items on a statement to a common size as

a percentage of some base value which assists in comparability with other companies of

different sizes .

Another method is comparative analysis. This provides a better way to determine trends.

Comparative analysis presents the same information for two or more time periods and is

presented side-by-side to allow for easy analysis.

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Chapter 3- Research and Methodology

Methodology

To know which method is used for, completing the project firstly we have to know

basically what primary data and secondary data are.

Primary Data

Information collected for the specific purpose at hand or specifically for the currently

undertaken.

Secondary Data

Information that already exists somewhere, have been collected for another purpose.

I used secondary data for this project. I refer some books and also some websites for the

project. These books and websites are mentioned in the bibliography.

Limitations of the study

Although sincere efforts have been done to collect authentic and relevant

Information ,the study may have the following limitations.

Limited scope: scope of the study is limited because of limited time. So;

results of the study may not be generalized as whole.

Results may be inaccurate: This study is based on the assumption that

perceptions are true and factual althoughat times that maynot be the case.

Existence of biases: though every care has been undertaken to eliminate

such biases , but considering the human factor possibility Of small bias

having come up cannot be ruled out altogether .

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Consumer behavior: Consumer behavior is dynamic in nature and thus

Over the time, finding of today may be invalid tomorrow.

Sample size: The Sample size taken is small and may not be sufficient

to predict the 100% accuracy and hence finding may not be generalized

STUDY OF CASH FLOW STATEMENT

MEANING: Cash flow statement or statement of cash flows is a

financial statement that shows a company's incoming and outgoing money (sources and

uses of cash) during a time period (often monthly or quarterly). The statement shows how

changes in balance sheet and income accounts affected cash and cash equivalents, and

breaks the analysis down according to

operating, investing, and financing activities. As an analytical tool the

statement of cash flows is useful in determining the short-term viability of a

company, particularly its ability to pay bills.

PURPOSE: The cash flow statement reflects a firms liquidity or

solvency. The main purpose to make cash flow statement are as follows:

1.provide information on a firm's liquidity and solvency and its ability to

change cash flows in future circumstances

2. provide additional information for evaluating changes in assets, liabilities

and equity

3.improve the comparability of different firms' operating performance by

eliminating the effects of different accounting methods

4. indicate the amount, timing and probability of future cash flows

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ACTIVITIES INVOLVED IN CASH FLOW:

The cash flow statement is partitioned into cash flow resulting from operating activities,

cash flow resulting from investing activities, and cash flow resulting from financing

activities.

Operating activities: Operating activities include the production, sales and

delivery of the company's product as well as collecting payment from its customers. This

could include purchasing raw materials, building inventory, advertising.

Investing activities: Investing activities focus on the purchase of the long-term

assets a company needs in order to make and sell its products, and the selling of

any long-term assets.

Financing activities: Financing activities include the inflow of cash from

investors such as banksand shareholders, as well as the outflow of cash

to shareholders asdividends as the company generates income. Other activities which

impact the long-term liabilities and equity of the company are also listed in the financing

activities section of the cash flow statement.

Analysis of cash flow statement is necessary for every organisation to depict its

cash inflow and outflow.

FINANCIAL STATEMENT ANALYSIS

MEANING: Financial statement analysis is the process of examining

relationships among financial statement elements and making comparisons with relevant

information. It is a valuable tool used by investors and creditors, financial analysts, and

others in their decision-making processes related to stocks, bonds, and other financial

instruments. With a great understanding of the balance sheet & p&l account and how it is

constructed, we can look at some techniques to analyze the information contained within

the balance sheet & p&l account.

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PURPOSE:The main purpose of analyzing the financial statement are

the following:-

To assess past performance and current financial position.

To make predictions about the future performance of a company.

4.4.3 TOOLS FOR ANALYSING

1.PERCENTAGE CALCULATION

There are two popular methods by which we can analyze the financial

statement by calculating percentage as taking a common base.

Horizontal Analysis

When an analyst compares financial information for two or more years for a singlecompany, the process is referred to as horizontal analysis, since the analyst is reading

across the page to compare any single line item, such as sales revenues. In addition to

comparing dollar amounts, the analyst computes percentage changes from year to year

for all financial statement balances, such as cash and inventory. Alternatively, in

comparing financial statements for a number of years, the analyst may prefer to use a

variation of horizontal analysis called trend analysis. Trend analysis involves calculating

each year's financial statement balances as percentages of the first year, also known as the

base year. When expressed as percentages, the base year figures are always 100 percent,

and percentage changes from the base year can be determined.

If we want to calculate % change in sales then we apply the following

formula:

Percentage=change in sales /Base Year Sales*100

Vertical Analysis

When using vertical analysis, the analyst calculates each item on a single financial

statement as a percentage of a total. The term vertical analysis applies because each year's

figures are listed vertically on a financial statement. The total used by the analyst on the

income statement is net sales revenue, while on the balance sheet it is total assets. This

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approach to financial statement analysis, also known as component percentages, produces

common-size financial statements. Common-size balance

sheets and income statements can be more easily compared, whether

across the years for a single company or across different companies.

If we want to calculate % change of current assets then we apply the

following formula:

Percentage: current assets/total assets*100

2.RATIO ANALYSIS

Financial ratio analysis uses formulas to gain insight into the company and its operations.

For the balance sheet, using financial ratios (like the debt-to-equity ratio) can show you a

better idea of the companys financial condition along with its operational efficiency. It is

important to note that some ratios will need information from more than one financial

statement, such as from the balance sheet and the income statement. Ratio analysis

facilitates inter-firm and intra-firm comparison.

Ratios are often classified using the following terms:

LIQUIDITY RATIO

Liquidity ratios are measures of the short-term ability of the company to

pay its debts when they come due and to meet unexpected needs for cash.

Current Ratio: The current ratio is a rough indication of a firm ability to

service its current obligations. Generally, the higher the current ratio, the

greater the cushion between current obligations and a firm ability to pay them. The

stronger ratio reflects a numerical superiority of current assets over current liabilities

Current ratio is calculated as follows:

Current ratio= Current Assets/Current Liabilities

Quick Ratio: It is also known as the acid test ratio, this is a refinement

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Chapter 4

38

CompanyWeight in

Sensex

Weight in

NiftyVariance

Promoter

holdings (%)

Infosys

Technologies8.66 3.79 4.87 16.49

Reliance

Industries17.41 12.95 4.46 49.03

ICICI Bank 5.74 2.13 3.61 0

Larsen & Toubro 5.61 2.31 3.3 0

HDFC 5.41 2.37 3.04 0

ITC 6.47 3.44 3.03 0

HDFC Bank 5.08 2.22 2.86 19.38

Wipro 1.06 1.97 -0.91 79.32

DLF 0.75 1.85 -1.1 88.55

ONGC 4.63 8.6 -3.97 74.14

NTPC

2.98 7.4 -4.42 89.5


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Finding and Analysis

MANAGEMENT DISCUSSION & ANALYSISSummary

Profit before provisions and tax increased by 35.5% to Rs. 79.61 billion in fiscal 2008

from Rs. 58.74 billion in fiscal 2007 primarily due to an increase in net interest income

by 29.6% to Rs. 73.04 billion in fiscal 2008 from Rs. 56.37 billion in fiscal 2007 and an

increase in non-interest income by 27.2% to Rs.88.11 billion in fiscal 2008 from Rs.

69.28 billion in fiscal 2007, offset, in part, by an increase in non-interest expenses by

21.9% to Rs. 81.54 billion in fiscal 2008 from Rs. 66.91 billion in fiscal 2007. Provisions

and contingencies (excluding provision for tax) increased by 30.5% during fiscal 2008

primarily due to a higher level of specific provisioning on non- performing loans, offset,

in part by a reduction in general provision on loans. Profit before tax increased by 38.6%

to Rs. 50.56 billion in fiscal 2008 from Rs. 36.48 billion in fiscal 2007. Profit after tax

increased by 33.7% to Rs. 41.58 billion in fiscal 2008 from Rs. 31.10 billion in fiscal

2007.

Net interest income increased by 29.6% to Rs. 73.04 billion in fiscal 2008 from Rs. 56.37

billion in fiscal 2007, reflecting an increase of 27.6% or Rs. 711.07 billion in the average

volume of interest-earning assets and an increase in net interest margin to 2.22% in

fiscal 2008 compared to 2.19% in

fiscal 2007.

Non-interest income increased by 27.2% to Rs. 88.11 billion in fiscal 2008 from

Rs. 69.28 billion in fiscal 2007 primarily due to a 32.2% increase in fee income and a

14.0% increase in treasury and other non-interest income.

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Non-interest expenses increased by 21.9% to Rs. 81.54 billion in fiscal 2008 from

Rs. 66.91 billion in fiscal 2007 primarily due to a 28.6% increase in employee

expenses and a 31.6% increase in other administrative expenses.

Provisions and contingencies (excluding provision for tax) increased to Rs. 29.05

billion in fiscal 2008 from Rs. 22.26 billion in fiscal 2007 primarily due to higher

level of specific provisioning on retail loans due to change in the portfolio mix

towards non-collateralised loans and seasoning of the loan portfolio, offset in part by

a reduction in general provision on loans due to lower growth in the loan portfolio

relative to fiscal 2007.

Total assets increased by 16.0% to Rs. 3,997.95 billion at year-end fiscal 2008

from Rs. 3,446.58 billion at year-end fiscal 2007 primarily due to an increase in

advances by 15.2% and an increase in investments by 22.1%.

During the year, we made a follow-on public offering of equity shares in India and

an issuance of American Depository Shares (ADSs) aggregating to Rs. 199.67 billion.

The Sangli Bank Limited (Sangli Bank) was amalgamated with ICICI Bank with

effect from April 19, 2007 in terms of the scheme of amalgamation approved by

Reserve Bank of India (RBI) vide its order DBOD No. PSBD 10268/16.01.128/2006-

07 dated April 18, 2007 under section 44A (4) of the Banking Regulation Act, 1949.

Sangli Bank was a banking company incorporated under the Companies Act, 1956

and licensed by RBI under the Banking Regulation Act, 1949. The consideration for

the

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amalgamation was 100 equity shares of ICICI Bank of face value Rs. 10 each fully

paid-up for every 925 equity shares of face value of Rs. 10 each of Sangli Bank.

Accordingly, on May 28, 2007, ICICI Bank allotted 3,455,008 equity shares of Rs. 10

each, credited as fully paid up, to the shareholders of Sangli Bank. The excess of the

paid-up value of the shares issued over the fair value of the net assets acquired

(including reserves) of Rs. 3.26 billion and amalgamation expenses of Rs. 0.22 billion

have been deducted from the securities premium account.

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CAPITAL STRUCTURE

From

Year

To

Year

Class Of

Share

Authorized

Capital

Issued

Capital

Paid Up

Shares

(Nos)

Paid Up

Face

Value

Paid Up

Capital

2007 2008Equity

Share1,275.00 1,112.69 1112687495 10 1,112.69

2006 2007Equity

Share

1,000.00 899.27 899266672 10 899.27

2005 2006Equity

Share1,000.00 153.84 153844503 10 153.84

2005 2006Equity

Share1,000.00 889.82 889823901 10 889.82

2004 2005Equity

Share1,550.00 616.39 350000000 10 350.00

2004 2005Equity

Share1,550.00 616.39 616391905 10 616.39

2003 2004Equity

Share1,550.00 613.02 613021301 10 613.02

2001 2002Equity

Share300.00 220.36 220358680 10 220.36

2000 2001

Equity

Share 300.00 196.82 196818880 10 196.82

1999 2000Equity

Share300.00 196.82 196818880 10 196.82

1997 1999 Equity 300.00 165.00 165000700 10 165.00

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Share

1995 1997Equity

Share300.00 150.00 150000700 10 150.00

1994 1995 EquityShare

300.00 150.00 150000000 7 105.00

1994 1995Equity

Share300.00 150.00 700 10 -

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BALANCE SHEET(2006-2008)

Balance Sheet (Rs. in millions)

Liabilities

March-

2008

(12 Months)

March-

2007

(12 Months)

March-

2006

(12 Months)

Share Capital 14,626.79 12,493.44 12,398.35

Reserves & Surplus 453,575.31 234,139.21 213,161.57

Net Worth (1) 468,202.10 246,632.64 225,559.92

Secured Loans (2) 656,484.34 512,560.26 385,219.14

Unsecured Loans (3) 2,444,310.50 2,305,101.86 1,650,831.71

Total

Liabilities(1+2+3)3,568,996.94 3,064,294.77 2,261,610.77

Assets

March-

2008

(12 Months)

March-

2007

(12 Months)

March-

2006

(12 Months)

Fixed Assets

Gross Block 70,360.04 62,985.63 59,685.65

(-) Acc. Depreciation 29,271.06 23,751.40 19,878.54

Net Block (A) 41,088.98 39,234.23 39,807.12

Capital Work inPrgs. (B)

0.00 1,896.63 1,479.42

Investments (C) 1,114,543.42912,578.42 715,473.94

Current Assets, Loans & Advs.

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Inventories 0.00 0.00 0.00

Sundry Debtors 0.00 0.00 0.00

Cash And Bank 380,411.29 371,213.25 170,402.25

Loans And Advances 2,461,907.08 2,121,658.60 1,586,726.82

(i) 2,842,318.37 2,492,871.85 1,757,129.06

Current Liab. & Provs.

Current Liabilities 400,673.68 358,817.11 238,016.23

Provisions 28,280.15 23,469.25 14,262.55

(ii) 428,953.83 382,286.36 252,278.78

Net Curr. Assets (i -

ii) (D)2,413,364.55 2,110,585.49 1,504,850.28

Misc. Expenses (E) 0.00 0.00 0.00

Total Assets

(A+B+C+D+E)3,568,996.94 3,064,294.77 2,261,610.77

Quarterly Results (Rs. in Millions)

Quarterly Results (Rs. in Millions)

December2008

[3 Quarter]

September2008

[2 Quarter]

December2007

[3 Quarter]

Sales Turnover 78360.80 78349.80 79117.70

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Other Income 25145.40 18773.30 24265.90

Total Income 103506.20 97123.10 103383.60

Total Expenditure 17341.10 17400.40 21276.10

Operating Profit 86165.10 79722.70 82107.50

Interest 58456.70 56873.60 59520.80

Gross Profit 27708.40 22849.10 22586.70

Depreciation 0.00 0.00 0.00

Tax 4909.90 3471.70 2681.20

ReportedPAT 12721.50 10142.10 12302.10

Equity Capital 11132.90 11132.90 11122.70

Extra Ordinary Items 0.00 0.00 0.00

Adjusted Profit After Extra Ordinary Item 12721.50 10142.10 12302.10

Book Value 417.43 417.43 0.00

EPS 11.43 9.11 11.06

Dividend 0.00 0.00 0.00

Quarterly Results (in %)

Quarterly Results (in %)

% Change over

September, 2008

% Change over

December, 2007

Sales Turnover 0.01 -0.96

Other Income 33.94 3.62

Total Income 6.57 0.12

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Total Expenditure -0.34 -18.49

Operating Profit 8.08 4.94

Interest 2.78 -1.79

Gross Profit 21.27 22.68

Depreciation 0.00 0.00

Tax 41.43 83.12

ReportedPAT 25.43 3.41

Equity Capital 0.00 0.09

Extra Ordinary Items 0.00 0.00

Adjusted Profit After Extra Ordinary Item 25.43 3.41

Book Value 0.00 0.00

EPS 25.47 3.35

Dividend 0.00 0.00

Profit and loss account

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RATIO ANALYSIS

Ratios

Profitability Ratios % March- 2008

(12 months)

March- 2007

(12 months)

March- 2006

(12 months)

Operating Profit Margin 14.45 13.33 18.66

Gross Profit Margin 12.99 11.41 15.10

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Net Profit Margin 10.51 10.81 14.12

Turnover Ratios

Inventory Turnover Ratio 0.00 0.00 0.00

Debtor Turnover Ratio 0.00 0.00 0.00

Fixed Asset Turnover Ratio 5.61 4.52 2.93

Solvency Ratio

Current Ratio 0 .73 0 .62 0 .62

Debt Equity Ratio 5.22 9.35 7.32

Interest Covering Ratio 0 .24 0 .23 0 .34

Performance Ratio %

Return On Investment 1.95 1.48 1.74

Return On Networth 8.94 12.79 11.43

Dividend Yield 33.12 33.89 34.08

The above table shows that:- both current ratio and quick ratio is liquidity ratio. The ideal

ratio for current ratio is 2:1 and ideal ratio for quick ratio is 1:1. In these table current

ratio of both year is higher than the ideal ratio which shows that there is enough current

assets which make the bank able to pay its current liabilities on time but quick ratio is

lower than the ideal ratio which shows that bank have not enough liquid assets to pay

their current liabilities. Therefore bank should keep some assets in the form of liquid

assets such as cash, marketable securities etc.

Return on equity, return on assets and operating profit to working funds are profitability

ratio. The higher the profitability ratio of any organization is show the better position of

that organization. The profitability ratio of ICICI bank is very low. It is deceasing from

the previous year.

Fixed/worth ratio measures the extent to which owners equity has been invested in plant

and equipment . A lower ratio indicates a proportionately smaller investment in fixed

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assets. This ratio shows that bank has invested more in current assets than the fixed

assets. It could be a good position in case of liquidation.

SHARE HOLDING PATTERN

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Chapter 5

51

Holder's Name No of Shares % Share Holding

Directors 914352 0.08%

OtherCompanies 52612667 4.73%

ForeignNRI 5389371 0.48%

ForeignOcb 50060 0.00%

ForeignOthers 10529566 0.95%

ForeignInstitutions 409979962 36.83%

ForeignIndustries 3790 0.00%

Other

S

304852852 27.38%

NBanksMutualFunds 88067601 7.91%

GeneralPublic 82265782 7.39%

FinancialInstitutions 158584639

14.25%


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CONCLUSION AND SUGGESION

The balance-sheet along with the income statement is an important tools for investors

and many other parties who are interested in it to gain insight into a company and its

operation. The balance sheet is a snapshot at a single point of time of the companys

accounts- covering its assets, liabilities and shareholders equity. The purpose of the

balance-sheet is to give users an idea of the companys financial position along with

displaying what the company owns and owes. It is important that all investors know

how to use, analyze and read balance-sheet. P & L account tells the net profit and net

loss of a company and its appropriation.

In the case of ICICI Bank, during fiscal 2008, the bank continued to grow and

diversify its assets base and revenue streams. Bank maintained its leadership in all

main areas such as retail credit, wholesale business, international operation,

insurance, mutual fund, rural banking etc. Continuous increase in the number of

branches, ATM and electronic channels shows the growth take place in bank.

Trend analysis of profit & loss account and balance sheet shows the % change in

items of p & l a/c and balance sheet i.e. % change in 2006 from 2005 and % change in

2007 from 2006. It shows that all items are increased mostly but increase in this year

is less than as compared to increase in previous year. In p & l a/c, all items like

interest income, non-interest income, interest expenses, operating expenses, operating

profit, profit before tax and after tax is increased but in mostly cases it is less than

from previous year but in some items like interest income, interest expenses,

provision % increase is more. Some items like tax, depreciation, lease income is

decreased. Similarly in balance sheet all items like advances, cash, liabilities, deposits

is increased except borrowings which is decreased. % increase in some item is more

than previous year and in some items it is less.

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Ratio analysis of financial statement shows that banks current ratio is better than the

quick ratio and fixed/worth ratio. It means bank has invested more in current assets

than the fixed assets and liquid assets. Bank have given more advances to its customer

and they have less cash in their hand. Profitability ratio of bank is lower than as

compared to previous year. Return on equity is better than the return on assets.

The cash flow statement shows that net increase in cash generated from operating and

financing activities is much more than the previous year but cash generated from

investing activities is negative in both year. There is increase of 159,708,479

thousand RS. in Increase in cash & cash equivalents from previous year. Therefore

analysis of cash flow statement shows that cash inflow is more than the cash outflowin ICICI Bank.

Thus, the ratio analysis and trend analysis and analysis of cash flow statement shows

that ICICI Banks financial position is good. Banks profitability is increasing but not

at high rate. Banks liquidity position is fair but not good because bank invest more in

current assets than the liquid assets. As we all know that ICICI Bank is on the first

position among all the private sector bank of India in all areas but it should pay

attention on its profitability and liquidity. Banks position is stable.

SUGGESTIONS

Some of the recommendation and suggestion are as follows:

o The attention is required on the areas of growth, profitability ,service

level and building talent.

o To increase the profit of bank, bank should decrease their operating

expenses and increase their income.

o To increase its liquidity, bank should keep some more cash in its hand

instead of giving more and more advances.

o Introduce quality consciousness and standardization of the work system

and procedures.

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o Make manager competitive and introduce spirit of market-orientation and

culture of working for customer satisfaction.

o There is need to build the knowledge and skill base among the employees

in the context of technology.

o Performance measure should not only cover financial aspects i.e.

quantitatively aspects but also the qualitative aspects.

o It is high time to focus on work than the work-achieved.

o Bank should increase its retail portfolio.

o Bank should manage its all risk such as credit, market and operational

risk properly and should be managed by a person who are highly skilled

and qualified.

o Bank should pay attention on its subsidiary ICICI Prudential Life

Insurance Company Limited

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