Financial Statment Analysis of Icici Bank

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  • 1. Financial Statement Analysis of
  • 2. AGENDA • Timeline of ICICI Bank • BOD’s Report and MDA • Significant Accounting Policies • Cash Flow Analysis • Ratio Analysis • Track Announcements
  • 3. TIMELINE OF ICICI BANK • 1994 - Promoted by ICICI Limited • 1996 - Appointed KV Kamath as CEO & MD • 1998 - Issued public equity shares in India • 1999 - Listed in NYSE (First Indian Company) • 2001 - Merged with Bank of Madura Ltd • 2010 - Merged with The Bank of Rajasthan Ltd
  • 4. BOD’S REPORT AND MDA • RBI introduced Base Rate System – ‘I-Base’ was at 9.25% p.a on May 7th 2011 • Banks paid interest to Savings Bank Account on daily average basis at 4% • RBI increased repo and reverse repo to 6.75% and 5.75% from 5% and 3.5% respectively
  • 5. • ICICI Bank issued 25 equity shares of ICICI Bank for every 118 equity shares of The Bank of Rajasthan Ltd • RBI imposed a regulatory ceiling on Loan to Value Ratio at 80% for housing loans • Non interest expenses increased to Rs.66.17 billion from Rs.58.6 billion due to increase in employee expenses BOD’S REPORT AND MDA
  • 6. • ICICI bank decreased provisions and contingencies from 43.87 billion to 22.87 billion • Total advances increased to 2163.66 billion from 1,812.06 billion due to increase in – Domestic corporate loans – Overseas corporate loans – Loans taken over from Bank of Rajasthan BOD’S REPORT AND MDA
  • 7. SIGNIFICANT ACCOUNTING POLICIES ITEM METHOD FOLLOWED PURCHASE AND SALE OF INVESTMENTS TRADE DATE GOVERNMENT SECURITIES SETTLEMENT DATE DEPRECIATION STRAIGHT LINE BULLION BUSINESS CONSIGNMENT SCHEDULE 17
  • 8. CASH FLOW ANALYSIS • From operating activities: DECREASED – Increase in advances • From investing activities: DECREASED – Increase in purchase of securities • From financing activities: INCREASED – Increase in funds for expanding its business ACTIVITIES 2011 2010 OPERATING ACTIVITIES (69.08) 18.69 INVESTING ACTIVITIES (21.08) 61.5 FINANCING ACTIVITIES 31.05 13.82 In Rs. billion
  • 9. RATIO ANALYSIS LIQUIDITY 2011 2010 Current Ratio 0.759 0.767 Quick Ratio 0.293 0.355 PROFIT & LOSS A/C RATIO 2011 2010 Interest expended to Interest earned 0.652 0.684 Other Income to Total Income 0.203 0.225 2011 2010 Efficiency Ratio 59.4% 54.6% Asset Turnover Ratio 0.08 0.09
  • 10. RATIO ANALYSIS FOR SHAREHOLDERS 2011 2010 Earning Per Share 45.27 36.14 Book Value 478.31 463.01 Return on Equity 9.6 7.9 Earnings Retention 69% 66% Dividend Payout 31% 34% COVERAGE RATIO 2011 2010 Interest Coverage 1.53 1.55
  • 11. RATIO ANALYSIS CASA TO TOTAL DEPOSITS 2011 2010 ICICI BANK 45.1 41.7 AXIS BANK 41.09 46.73 HDFC BANK 51 51 NET INTEREST INCOME* 2011 2010 ICICI BANK 90.17 81.14 AXIS BANK 65.63 50.04 HDFC BANK 105.43 83.86 NET INTEREST MARGIN 2011 2010 ICICI BANK 2.6 2.5 AXIS BANK 3.65 3.75 HDFC BANK 4.2 4.4 * In Rs. billion
  • 12. 0.00 20.00 40.00 60.00 80.00 100.00 120.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 AxisTitle Performance of ICICI with SENSEX ICICI SENSEX
  • 13. TRACK ANNOUNCEMENTS DATE PERCENTAGE CHANGE IN PRICE NEWS 29th July 2011 + 1.985 Q1 net profit was increased by 30% 11th August 2011 - 2.2 Base Rate was increased from 9.5% to 10% 7th October 2011 + 5.822 Moody reaffirms ICICI rating calling it as robust 28th October 2011 + 7.014 RBI paused the hike of interest rates
  • 14. THANK YOU