PERFORMANCE APPRAISAL

“Performance Appraisal of ICICI Bank”
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S.C.S (A) College, Puri2011 2012
CHAPTER -1
INTRODUCTION
Every country needs the service of financial institution for accelerating the
pace of development. In India various financial institutions were set up after
independence only. At present the country has 20 institutions at the national level
and 50 at state even in this ICICI bank is one type of nationalized institution.
Government of India, World Bank and representative and private industry,
on January 5 1955 to encourage and assist industrial development and investment
in India founded ICICI bank limited. The date of commencement of business was
March 1, 1955 over the year ICICI has enveloped into a diversified financial
institution.
ICICI provided middle term and long term project financing for the
infrastructure and manufacturing sector, co-operate finance to meet the treasury
requirement of Indian companies, also financing as was as a comprehensive range
of Financial and advisory Service.
ICICI is a financial institution, which is known as INDUSTRIAL CREDIT
AND INVESTMENT CORPORATION OF INDIA. It established with main
objectives that to encourage and assist industrial development and investment in
India. The corporations were set up with an authorized capital of 50 cares.
The corporation set up in 1994 a commercial bank called ICICI banking,
corporation ltd. To provided compressive funding and net funding facilities to its
corporate clients. The ICICI banking corporation has been set up as 100%
subsidiaries.

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OBJECTIVE OF THE STUDY
Objectives are the ends that states specifically how goal be achieved. Every study
must have an objective for which all the efforts have been done. Without objective
no research can 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 the study gives direction to go through the research
problem. It guides the researcher and keeps him on track. I have two objectives
regarding my research project. These are shown below :-
1. Primary objective
2. 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’s
true financial position by the use of ratios.
2. SecondaryObjective:-
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 be able 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 the company with assets outweighing the liabilities.
 Protecting the property of the business.
 Compliances with legal requirement.

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METHODOLOGY:
The analysis and interpretation of financial statements is used to determine the
financial position and results of operation as well. A number of methods or devices
are used to study the relationship between different statements. An effort is made
to use those devices which clearly analysis the position of the enterprise.
 Trend Analysis
 Common –Size Statement
 Cash flow Analysis
 Ratio Analysis
TREND ANALYSIS
The financial statements may be analyzed by computing treds of series of
information. This methods determines the direction upwards or downwards and
involves the computation of the percentage relationship that each statement item
bears to the same item in base year. The information for a number of years is taken
up and one year, generally the first year, is taken as a base year.
COMMON- SIZE STATEMENT
The common – size statements, balance sheet and income statement, are shown in
analytical percentages. The figures are shown as percentages of total assets, total
assets, total liabilities and total sales. The total assets are taken as 100 and different
assets are expressed as a percentage of the total. Similarly, various liabilities are
taken as apart of total liabilities. These statements are also known as component
percentage or 100 per cent statements because evry individual item is state as a
percentage of the total 100. The common –size statements may be prepared in the
following way:

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CASH FLOW ANALYSIS
It is the study of the cycle of your business' cash inflows and outflows, with the
purpose of maintaining an adequate cash flow for your business, and to provide the
basis for cash flow management.
Cash flow analysis involves examining the components of your business that affect
cash flow, such as accounts receivable, inventory, accounts payable, and credit
terms. By performing a cash flow analysis on these separate components, you'll be
able to more easily identify cash flow problems and find ways to improve your
cash flow.
RATIO ANALYSIS
Ratio analysis is a widely used tool of financial analysis. It is defined as the
systematic use of ratio to interpret the financial statements so that the strength and
weaknesses of a firm as well as its historical performance and current financial
condition can be determined. The term ratio refers to the numerical or quantitative
relationship between two variables.
LIMITATIONS OF STUDY
On preparation of the project, I faced many problems of the following constraints.
 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 data contained in the
published annual reports of ICICI Bank for the study period.

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 Due to the limited time available at the disposable , the study has been confined
for a period of 5 years (2007-2011).
 Ratio itself will not completely show the company’s good or bad financial
position.
 Inter firm comparison was not possible due to the non availability of
competitors data.
 The study of financial performance can be only a means to know about the
financial condition of the company and cannot show a through picture of the
activities of the company
CHAPTER PLAN
Chapter-1 : Introduction
Chapter-2 : Company’s Profile
Chapter-3 : Financial Analysis
Chapter-4 : Findings, Suggestion, Conclusion&
Bibliography
.

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CHAPTER-2
COMPANY’S PROFILE
Type
Private
BSE & NSE:ICICI,
NYSE: IBN
Industry
Banking
Insurance
Capital Markets and allied industries
Founded 1955 (as Industrial Credit and Investment Corporation ofIndia)
Headquarters
ICICI Bank Ltd.,
ICICI Bank Towers,
Bandra Kurla,
Mumbai, India
Key people K.V. Kamath,Chairman
Chanda Kochhar, Managing Director & CEO
Sandeep Bakhshi, Deputy Managing Director
N.S. Kannan, Executive Director & CFO
K. Ramkumar, Executive Director
Sonjoy Chatterjee, Executive Director
Products Loans, Credit Cards,Savings, Investment vehicles, Insurance etc.
Revenue ▲ USD 15.06 billion
Total assets
▲ USD 120.61 billion (at March 31, 2011.)

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Introduction of Company
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian
financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in
ICICI Bank was reduced to 46% through a public offering of shares in India in
fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal
2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative
of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution
for providing medium-term and long-term project financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group
offering a wide variety of products and services, both directly and through a
number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the
first Indian company and the first bank or financial institution from non-Japan Asia
to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the
context of the emerging competitive scenario in the Indian banking industry, and
the move towards universal banking, the managements of ICICI and ICICI Bank
formed the view that the merger of ICICI with ICICI Bank would be the optimal
strategic alternative for both entities, and would create the optimal legal structure
for the ICICI group's universal banking strategy. The merger would enhance value
for ICICI shareholders through the merged entity's access to low-cost deposits,
Website www.icicibank.com

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greater opportunities for earning fee-based income and the ability to participate in
the payments system and provide transaction-banking services. The merger would
enhance value for ICICI Bank shareholders through a large capital base and scale
of operations, seamless access to ICICI's strong corporate relationships built up
over five decades, entry into new business segments, higher market share in
various business segments, particularly fee-based services, and access to the vast
talent pool of ICICI and its subsidiaries.
In October2001, the Boards of Directors of ICICI and ICICI Bank approved
the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, with
ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank
in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and
by the High Court of Judicature at Mumbai and the Reserve Bank of India in April
2002. Consequent to the merger, the ICICI group's financing and banking
operations, both wholesale and retail, have been integrated in a single entity.
Management of Company
ICICI Bank has contributed to set up different institutions which include the
following:
2007: First rural branch and ATM launched in Uttar Pradesh at
Delpandarwa, Hardoi. ; "Free for Life" credit cards launched wherein annual fees
of all ICICI Bank Credit Cards were waived off. ; ICICI Bank and Visa jointly
launched chq – a revolutionary credit card on the mobile phone. ; Private Banking
Masters 2005, a nationwide Golf tournament for high net worth clients of the
private banking division launched. This event is the largest 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. ;

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ICICI acquired Investigation -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.
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.
2008: ICICI Bank became the first Indian bank to issue hybrid Tier-1
perpetual debt in the international markets. : ICICI Bank subsidiary set up in
Russia. ; Introduced a new product - ‘NRI smart save Deposits’ – a unique fixed
deposit scheme for nonresident Indians. : Representative offices opened in
Thailand, Indonesia and Malaysia. ; ICICI Bank UK opened a branch in Antwerp,
in Belgium ; ICICI Bank became the largest retail player in the market to introduce
a biometric enabled smart card that allows banking transactions to be conducted on
the field. A low-cost solution, this became an effective delivery option for ICICI
Bank’s micro finance institution partners. ; Financial counseling centre Disha
launched. Disha provides free credit counseling, financial planning and debt
management services. ; Bhoomi puja conducted for a regional hub in Hyderabad,
Andhra Pradesh.
2009: ICICI Bank‘s USD 2 billion 3-tranche international bond offering was
the largest bond offering by an Indian bank. ; ICICI amalgamated Sangli Bank,
which was headquartered in Sangli, in Maharashtra State, and which had 158
branches in Maharashtra and another 31 in Karnataka State. Sangli Bank had been
founded in 1916 and was particularly strong in rural areas. With respect to the
international sphere, ICICI also received permission from the government of Qatar
to open a branch in Doha. Also, ICICI Bank Eurasia opened a second branch, this

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time in St. Petersburg. ; ICICI Bank raised Rs 20,000 crore (approx $5 billion)
from both domestic and international markets through a follow-on public offer. ;
ICICI Bank’s GBP 350 million international bond offering marked the inaugural
deal in the sterling market from an Indian issuer and also the largest deal in the
sterling market from Asia. ; Launched India’s first ever jewellery card in
association with jewelry major Gitanjali Group. ; ICICI Bank became the first
bank in India to launch a premium credit card -- The Visa Signature Credit Card. ;
Foundation stone laid for a regional hub in Gandhi agar, Gujarat. ; Introduced
SME Toolkit, an online resource centre, to help small and medium enterprises
start, finance and grow their business. ; ICICI Bank signed a multi-tranche dual
currency US$ 1.5 billion syndication loan agreement in Singapore. ; ICICI Bank
became the first private bank in India to offer both floating 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
graduate students to pursue a career in banking, ICICI Bank launched the
"Probationary Officer Programme". ; Launched Bank@home services for all
savings and current a/c customers residing in India ; ICICI Bank Eurasia LLC
inaugurated its first branch at St Petersburg, Russia.
2010 : ICICI Bank enters US The US Federal Reserve permitted ICICI to
convert its representative office in New York into a branch.; ICICI Bank enters
Germany, opens its first branch in Frankfurt ; ICICI Bank launched Mobile, a
breakthrough innovation in banking where practically all internet banking
transactions can now be simply done on mobile phones. ; ICICI Bank 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 by four different asset categories. It is also the largest deal in Asia

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(ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan &
Australia) since the beginning of 2010. ; ICICI Bank launches ICICIACTIVE -
Banking Interactive Service - along with DISHTV, which will allow viewers to see
information about the Bank's products and services and contact details on their
DISHTV screens. ; ICICI Bank and British Airways launch co-branded credit card,
which is designed to earn accelerated reward points to the card holders with every
British Airways flight or by spending on everyday purchases.
2011: ICICI Bank Board appoints Mr K. V. Kamath as non-executive
Chairman and Ms Chanda Kochhar as Managing Director & CEO effective May 1,
2009, while the existing non-executive Chairman Mr N Vaghul retires after
completing his term on April 30, 2009 ; ICICI bank ties up with BSNL Cell One
for bill payments, it will facilitate bill payment for BSNL Cell One users through
www.icicibank.com across all the 27 circles of BSNL. ; ICICI Bank Limited acting
through its Hong Kong Branch (ICICI Bank) signed an agreement on Export
Credit Line totaling up to US$100 million with the Japan Bank for International
Cooperation (JBIC) which constitutes the international wing of Japan Finance
Corporation. ; ICICI Bank Limited acting through its Hong Kong Branch (ICICI
Bank) signed a loan agreement with the Export-Import Bank of China (China
Exim) 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 Airlines Visa Platinum Credit Card”, the Card has
exclusive privileges especially designed for the members. ; ICICI Bank announced
an association with mChek, India’s leading mobile payment solutions provider, to
facilitate mChek services to all ICICI Bank Debit and Credit Card customers.
These are electronic cards issued to the customers with mChek application on their

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mobile phone. ; Ms 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 capitalization
and second largest overall in terms of assets. Total assets of Rs. 3,562.28 billion
(US$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$
648.8 million) for the nine months ended December 31, 2011. The Bank also has a
network of 1,640 + branches (as on February 11, 2010) and about 4,721 ATMs in
India and presence in 18 countries, as well as some 24 million customers (at the
end of July 2007). ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery
channels and specialized subsidiaries and affiliates in the areas 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 credit cards in India.
ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and
Vadodara, Mumbai and the National Stock Exchange of India Limited, and its
ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in
overseas markets 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 in Canada, Russia and the UK (the subsidiary
through which the HiSAVE savings brand is operated), offshore banking units in
Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong
Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia,

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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
FY2011. The bank's Current and savings account (CASA) ratio increased to 28.7%
at March 31, 2011 from 26.1% at March 31, 2010. Increase of Rs. 5,286 crore in
CASA deposits in quarter ended March 31, 2011. ICICI Bank is one of the Big
Four Banks of India with State Bank of India, Axis Bank and HDFC Bank
ICICI Bank Group
Capital structure
The Authorized Capital of ICICI Bank is 214.75 Crores. The Issued,
Subscribed and Paid Up Capital is divided into 1113250642 equity shares @
Rs.10/- each
BUSINESS
 Vision
To be the leading provider of financial services in India and a major global
bank.

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 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-class service.
 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
businesses and 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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BUSINESS PROFILE
PRODUCTS AND SERVICES
PERSONAL BANKING
Loan Product Deposit Product Investment & Insurance
 Auto loan
 Loan against
security
 Loan against
property
 Personal loan
 Credit card
 2- wheeler loan
 Commercial
vehicles finance
 Home loans
 Retail business
banking
 Tractor loan
 Working capital
finance
 Construction
 Equipment finance
 Health care
finance
 Education loan
 Gold loan
 Savings A/C
 Current A/C
 Fixed Deposits
 Demat A/C
 Safe Deposit
Lockers
 Mutual Funds
 Bonds
 Knowledge Centre
 Insurance
 General And Health
Insurance
 Equity And Derivatives
 Mudra Gold Bar
Cards Payment Services Access To Bank
 Credit Card
 Debit Card
 Prepaid Card
--------------------------------
Forex services
--------------------------------
 Product And
Services
 Trade Services
 Forex Service
Branch Locater
 RBI Guidelines
 Net Safe
 Merchant
 Prepaid Refill
 Bill Pay
 Visa Bill Pay
 InstaPay
 Direct Pay
 VisaMoney
Transfers
 E-Monies Electronic
Funds Transfer
 Online Payment Of
Direct Tax
 Net Banking
 One View
 InstaAlert Mobile Banking
 ATM
 Phone Banking
 Email Statements
 Branch Network
PRODUCTS AND SERVICES

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ICICI Bank offers wide variety of Deposit Products to suit your requirements.
Coupled with convenience of networked branches/ ATMs and facility of E-
channels like Internet and Mobile Banking, ICICI Bank brings banking at your
doorstep. Select any of its deposit products and provide your details online and
their representative will contact you for Account Opening.
Saving Accounts
ICICI Bank offers customers a power packed Savings Account with a host
of convenient features and banking channels to transact through. So now customers
can bank at their convenience, without the stress of waiting in queues.
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 provides organizations solutions with added value and is ideal for tax
exempted entities.
LIFE PLUS”Seniorcitizens savings account
LIFE PLUS,a special savings account for senior citizens from ICICI Bank is
packed with a host of benefits,designed keeping your unique financial
requirements in mind.

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 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 and attractive 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.
 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 -18 years, brought to you
by ICICI Bank to help the parents meet the 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

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world of banking -through checking the account 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 you transfer to your
child's account, you can even shop with him / her at Young Stars very own
shopping 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 links to special zones designed to suit your child's area of interests and also
impart knowledge on the current events of the world.
Advantage woman savings account
The ICICI Bank Advantage Woman Account enables today’s independent women
to enjoy hassle-free banking services. Besides the core ICICI Bank advantage, the
Advantage Woman Savings Account is packed with special benefits for our
women customers. Enjoy your present and plan for the future with ICICI Bank’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.

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 Nomination facility available.
 Zero balance facility with an RD of Rs.2000 or Quarterly Average Balance
(QAB) requirement of Rs. 10,000.
Current Accounts:
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 technology leadership 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 Businessman, Joint stock companies, Institutions,
Public authorities, public corporations etc. Any business that has
numerous banking transactions need a current account as it.
 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 are well taken care of, customers can access their accounts at over
500 networked branches across 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 its employees.

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 The process of drawing cheques for salaries is replaced by sending
a single ASCII file to the bank and the amount is directly 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 an organization, you can opt for our Salary Accounts to enable easy
disbursements of salaries and enjoy numerous other benefits too.With ICICI Bank
Salary Accounts your employees will enjoy the 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 a cheque/debit instruction, ecs, etc) for the total salary amount along with
the salary details of the designated 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 than one ways:-
 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...

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Fixed Deposits:
Fixed deposits are options which help you grow your money thus creating wealth
in a safer and secure way. ICICI provides its customers with various kinds of Fixed
deposit 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 to deposit 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 on maturity.
 Interest compounded quarterly.
 Additional interest rate of 0.5% for senior citizens.
Recurring Deposits:
ICICI Bank Recurring Deposits are an ideal way to invest small amounts of
money every month and end up with a large kitty on maturity.High recurring
billing and recurring payments can be a drain on your finances and hence large
investments may seem a plan away.

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Recurring deposits aims to encourage savings without putting any 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 return that are identical to
the fixed deposit rates and most importantly no TDS is applicable in it .the
minimum 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:
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 the Security
Deposit in the form of a Fixed Deposit (FD) with the Bank. The employee cannot
withdraw such FDs without the consent of the company and the company has the
right to withdraw the FD in the event of employee leaving the organization before
a certain stipulated period.

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LOANS
Home Loans
Interest rates on home loans have come down considerably in the last few years.
Individuals who opted for housing loans in the years gone by, are still servicing
them at 17% to 21% per annum. Quite a price to pay, since one can get a loan
today for around 12% per annum. In such a case, you can opt for a balance
transfer. Under this scheme, customers can replace their existing old high interest
loan by a cheaper (equal to applicable current rates) loan. ICICI Home Finance
will not only finance the balance amount of outstanding loan but also your
prepayment charges to the old housing finance company. The result:
 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.
PersonalLoans
ICICI Bank Personal Loans are easy to get and absolutely hassle free. With
minimum documentation you can now secure a loan for an amount up to Rs. 15
lakhs.
 Loans for salaried & self employed individuals.

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 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 the loan.
 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 more than 1500
channel partners in over 780 locations. Tie-ups with all leading automobile
manufacturers to ensure the best deals. Flexible schemes & quick processing.
Hassle-free application process on the click of a mouse.
COMMERCIALVEHICLE Loans
 Reaches you through more than 700 locations across the country.
 Range of products under one umbrella.

25
 Funding of various products like HCVs, Buses, MCVs, LCVs, 3 wheelers &
used vehicle.
 Range of services on existing loans & extended products like funding of new
vehicles, refinance on used vehicles, balance transfer on high costloans, 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 WheelerLoans:
"Zoom" away in your favourite two wheeler. ICICI provides attractive schemes at
competitive interest rates.
 Finance facility available for all two wheelers ranging from mopeds to motor
bikes.
 Now avail Finance upto 90%* of the On Road Cost of the vehicle, 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.

26
 Existing ICICI Bank Customers ride away on your favourite Two Wheeler by
availing Loan 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 leading tractor manufacturers in
the country.
 ICICI finances farm equipments in over 381 locations spread across the
country.
 Provides fast processing of files with easy documentation.
 Flexible repayment options in tandem with the farmer's seasonal liquidity.
 Monthly, Quarterly and Half-yearly repayment patterns to choose from.
Comfortable repayment tenures from 1 year to 6 years.
ConstructionEquipment Loan
Having funded infrastructure for over 4 decades, ICICI understands the need of the
customers better. ICICI Bank offers attractive financial packages through their
excellent distribution network. The products are customised for new entrepreneur
to large business houses. ICICI has tie-up with leading construction equipment
manufacturers for wide range of products. The Bank take over existing high cost

27
loans at competitive terms resulting in huge savings and is quick 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.
MedicalEquipment Loan:
Professional doctors are aware of the distinct advantages that the latest medical
equipment can 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.

28
Loan Against Securities
Loans against Securities enable customers to obtain loans against their securities.
So they get instant liquidity without having to sell their securities.
All customers have to do is pledge your securities in favour of ICICI Bank The
Bank will then grant them an overdraft facility upto a value determined on the
basis of the securities pledged by them. A current account will be opened and
customer can withdraw money as and when they require. 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)
Credit Cards:
ICICI Bank Credit Cards give you the facility of cash, convenience and a range of
benefits, anywhere in the world. These benefits range from life time free cards,
Insurance benefits, global emergency assistance service, discounts, utility
payments, travel discounts and much more.

29
Debit Cards:
The ICICI Bank Debit Card is a revolutionary form of cash that allows 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 million merchants worldwide.
Travel Card:
Presenting ICICI Bank Travel Card. The Hassle Free way to Travel the world.
Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for
security and convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers
the Pin based security. Has the 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

30
cards are available on a VISA platform thus providing accessibility to over one
lakh merchant establishments & cash withdrawal from all VISA ATMs in India.
Investments
ICICI Bank cares about all needs. Along with Deposit products and Loan
offerings, ICICI Bank assists people to manage their finances by providing various
investment options ranging from ICICI Bank Tax Saving Bonds 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 products ICICI Bank also provides the ease of investing through electronic
channels like ATMs and Internet (ICICIdirect.com)
Icici Bank Bonds
 All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA" by
ICRA indicating the highest degree of safety for your money.

31
 Investment in ICICI Bank Bonds are eligible for tax rebate under Sec 88 to
the full extent possible.
 Bonds are listed on BSE, NSE.
GoiBonds
 8% Savings Bonds (Taxable), 2003.
 Low risk.
 Reasonable investment tenure.
 Nomination facility available.
 Cannot be traded in secondary market.
 Interest income taxable.

32
CHAPTER-3
FINANCIAL ANALYSIS
Introduction Meaning Of Financial Statements
Financial statements refer to such statements which contains financial information
about an enterprise. They report profitability and the financial position of the
business at the end of accounting period. The team financial statement includes at
least two statements which 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
mirrors the 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 operations during a certain period of time in terms of the revenues
obtained and the cost incurred during 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 the firm 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
decision under consideration to the total information contained in the financial
statement. The second step is to arrange the information in a way to highlight
significant relationship. The final step is interpretation and drawing of inference

33
and conclusions. Financial statement is the process of selection, relation and
evaluation.
FUNCTIONAL CLASSIFICATION IN VIEW OF
FINANCIAL MANAGEMENT OR CLASSIFICATION
ACCORDING TO TESTS
Table-1
Liquidity
Ratios
Long-term
Solvencyand
Leverage Ratios
Activity Ratios Profitability
Ratios
-Current Ratio
-Liquid Ratio
(Acid) Test or
Quick Ratio.
-Absolute liquid or
-Cash Ratio.
-Debtors
Turnover Ratio
-Creditors Turnover
Ratio
-Inventory Turnover
ratio
Financial Operating
Composite
-Debt. Equity
Ratio
-Debt to Total
Capital Ratio
-Interest
Coverage Ratio
-Capital Gearing Ratio
Inventory Turnover
Ratio.
Debtors Turnover Ratio
Fixed Assets Turnover
Ratio
Total Asset Turnover
Ratio
Working Capital
Turnover Ratio.
Payables Turnover
Ratio
Capital Employed
Turnover Ratio
In Relation to Sales.
Gross Profit Ratio.
Operating Ratio.
Operating Profit
Ratio.
Net Profit Ratio.
Expenses Ratio
In relation to
investments
Return on Investments.
Return on capital.
Return on Equity
Capital.
Return on total
Resources
Earning per share.
Price Earning Ratio.

34
PROFIT AND LOSS ACCOUNT OF ICICI BANK LTD.
Profit and Loss Account
Income statement is prepared to determine the operational position of the
concern. It is a statement of revenues earned and the expenses incurred for earning
that revenue. If there is excess of revenues over expenditures it will show a profit
and if the expenditure are more than the income then there will be a loss. The
income statement is prepared for a particular period, generally a year. When
income statement is prepared for the year ending on 31st March 2011 then all
revenues and expenditures falling due in that year will be taken into account
irrespective of their receipt or payment.
Table-2
Mar 2010,Mar 2011,Mar 2012,Mar2013,Mar2014. ( In crores)
2009-10 2010-11 2011-12 2012-13 2013-14
INCOME:
Interest Earned 9409.90 13784.49 22994.29 30788.34 31092.55
Other Income 3416.14 4983.14 5929.17 8810.77 7603.72
Total Income 12826.04 18767.63 28923.46 39599.11 38696.27
EXPENDITURE:
Interest Expended 6570.89 9597.45 16358.50 23484.24 22725.93
Operating
Expenses
3299.15 4479.51 6690.56 8154.18 7045.11
Total Expenses 9870.04 14076.96 23049.06 31638.42 29771.04
Operating Profit 2956 4690.67 5874.40 7960.69 8925.23
Other Provision
And Contigencies
428.80 1594.07 2226.36 2904.59 3808.26
Provision For Tax 522 556.53 537.82 898.37 1358.84
Net Profit 2005.20 2540.07 3110.22 4157.73 3758.13

35
Extraordinary
Items
0.00 0.00 0.00 0.00 (0.58)
Profit B/F 53.09 188.22 293.44 998.27 2436.32
Total 2058.29 2728.29 3403.66 5156.00 6193.87
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 632.96 759.33 901.17 1227.70 1224.58
Corporate Dividend
Tax
90.10 106.50 153.10 149.67 151.21
Pershare Data
Eps(Rs.) 27.22 28.55 34.59 37.37 33.78
Equity Dividend(%) 85.00 85.00 100.00 110.00 110.00
Book Value(Rs) 170.35 249.55 270.37 417.64 445.17
Appropriations
Transfer To
Statutory Reserve
547.00 248.69 1351.12 1342.31 2008.42
Transfer To Other
Reserve
600.01 1320.34 0.00 0.01 0.01
Proposed
Dividend/Transfer
To Govt
723.06 865.83 1054.27 1377.37 1375.79
Balance C/F To
Balance Sheet
188.22 293.44 998.27 2436.32 2809.65
Total 2058.29 2728.30 3403.66 5156.01 6193.87

36
Interpretation of Profit & Loss
1. On the year 2009-10 total income was Rs12826.63 crores and it has been
increased by Rs. 5941.59 crores on the year 2008.09. Relatively it has been
increased as an upwards direction up to the year 2013-14, There after it has been
decreased by Rs. 902.84 crores on the year 2013-14 as compared to the year 2012-
13.
2. Total expenditure has been increased as an upward direction from the year 2009-
10 to 2012-13, there after it has been decreased by Rs. 1867.38 crores an the year
2013-14.
3. Operating profit has been increased in an orderly manner from the year 2009-10
to 2013-14.
4. Net profit was Rs.2005.20 crores on the year 2010-11, it has been increased by
Rs. 534.87 on the year 2011-12, There after , it has been increased up to the year
2013-14 but on the year 2013-14 it has been decreased by Rs 399.6 crores.
5. The percentage of equity dividend on the year 2009-10 and 2010-11 was equal
i.e. Rs. 85%. It has been increased by 25% on the year 2011-12, 2012-13 and
2013-14.

37
BALANCE SHEET OF ICICI BANK LTD.
Meaning of Balance Sheet:-
The American institute of Certified Public Accounts defines Balance Sheets as, “A
tabular statement of summary of balances (debits and credits) carried forward after
an actual and constructive closing of books of account and kept according to
principles of accounting.” The purpose of the balance sheet is to show the
resources that the company has, i.e. its assets, and from where those resources
come from, i.e. its liabilities and investments by owners and outsiders.
The balance sheet is one of the important statements depicting the financial
strength of the concern. It shows on the one hand the properties that it utilizes and
on other hand the sources of those properties. The balance sheet shows all the
assets owned by the concern and all the liabilities and claims it owes to owners and
outsiders. The balance sheet is prepared on a particular date. The right hand side
shows properties and assets. Normally there is no particular sequence for showing
various assets and liabilities.

38
Table-4
Mar 2010, Mar 2011,Mar 2012,Mar2013,Mar2014. ( In crores )
2009-10 2010-11 2011-12 2012-13 2013-14
CAPITALAND
LIABILITIES:
Total Share
Capital
1086.75 1239.83 1249.34 1462.68 1463.29
Equity Share
Capital
736.75 889.83 899.34 1112.68 1113.29
Share
Application
Money
0.02 0.00 0.00 0.00 0.00
Preference Share
Capital
350.00 350.00 350.00 350.00 350.00
Reserves 11813.20 21316.16 23413.92 45357.53 48419.73
Revaluation
Reserves
0.00 0.00 0.00 0.00 0.00
Net Worth 12899.97 22555.99 24663.26 46820.21 49883.02
Deposits 99818.78 165083.17 230510.19 244431.05 218347.82
Borrowings 33544.50 38521.91 51256.03 65648.43 67323.69
Total Debt 146263.25 226161.17 306429.48 356899.69 335554.53
Other Liabilities
And Provisions
21396.17 25227.88 38228.64 42895.39 43746.43
Total Liabilities 167659.42 251388.95 344658.12 399795.08 379300.96
ASSETS:

39
Cash And
Balances With
RBI
6344.90 8934.37 18706.88 29377.53 17536.33
Balances With
Banks,Money At
Call
6585.07 8105.85 18414.45 8663.60 12430.23
Advances 91405.15 146163.11 195865.60 225616.08 218310.85
Investments 50487.35 71547.39 91257.84 111454.34 103058.31
Gross Block 5525.65 5968.57 6298.56 7036.00 7443.71
Accumulated
Depreciation
1487.61 1987.85 2375.14 2927.11 3642.09
Net Fixed Assets 4038.04 3980.72 3923.42 4108.89 3801.62
Capital Work In
Progress
96.30 147.94 189.66 0.00 0.00
Other Assets 8702.59 12509.57 16300.26 20574.63 24163.62
Contingent
liabilities
97507.79 119895.78 177054.18 371737.36 803991.92
Bills for
collection
9803.67 15025.21 22717.23 29377.55 36678.71
Book value(Rs.) 170.35 249.55 270.37 417.64 445.17
EPS 27.22 28.55 34.59 37.37 33.78
No. of equity
shares
736716094 889823901 899266672 1112687495 1113250642

40
Interpretation of Balance Sheet
1. Total share capita on the year 2009 -10 was Rs 1086.75 crores and it has been
increased by Rs 153.08 crores on the year 2011-12, there after it has been
increased as an upward direction up to the year 2013-14.
2. The preference share capital have been equal in all the years commencing from
2009-10 to 2013-14 i.e. Rs 350.00 crores.
3. The net worth was Rs. 12899.97 crores and there after it has been increased as
an upward direction up to the year 2013-14
4. Total debt was Rs. 146263.25 crores on the year 2009-10, there after it has been
increased as on upward direction up to the year 2013-14. But on the year 2013-14
it has been decreased by Rs. 21345.16 crores as compared to the year 2013-14.
5. On the year 2009-10 net fixed asset was Rs 4038.04 crores it has been decreased
by Rs. 57.32 crores on the year 2009-10. On the year 2013-14 it has been increased
by Rs. 185.47 crores as compared to the year 2009-10. On the year 2013-14 it has
been decreased by Rs309.27.
RATIO ANALYSIS
CURRENT RATIO:
An indication of a company's ability to meet short-term debt obligations; the higher
the ratio, the more liquid the company is. Current ratio is equal to current assets
divided by current liabilities. If the current assets of a company are more than
twice the current liabilities, then that company is generally considered to have
good short-term financial strength. If current liabilities exceed current assets, then
the company may have problems meeting its short-term obligations.

41
Current Ratio of ICICI Bank for the period of
2005-2009
1.01
1.17
1.39 1.36
1.23
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2005 2006 2007 2008 2009
Years
Ratio
Current Ratio
0
20
40
60
80
100
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
East
West
North
CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES
Table-1
Year Current Assets
(Rs. In crores)
Current Liabilities
(Rs. In crores)
Current Ratio
2010 21632.56 21396.16 1.01
2011 29549.79 25227.88 1.17
2012 53421.59 38228.64 1.39
2013 58615.76 42895.38 1.36
2014 54130.18 43746.43 1.23
2010 2011 2012 2013 2014
Current Ratio of ICICI Bank for the period of
2010-2014

42
 Interpretation:
An ideal solvency ratio is 2. The ratio of 2 is considered as a safe margin of
solvency due to the fact that if current assets are reduced to half (i.e.) 1 instead of
2, then also the creditors 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 current
assets just equal to the current liabilities which is not satisfactory as the safety
margin is very less or zero. Therefore the bank should keep more current assets so
that it can maintain a satisfactory safety margin.
LIQUID RATIO:
Liquid ratio is also known as ‘Quick’ or ‘Acid Test ‘Ratio. Liquid assets refer to
assets which are quickly convertible into cash. Current Assets other stock and
prepaid expenses are considered as quick assets.
Quick Ratio = Total Quick Assets
Total Current Liabilities
Quick Assets = Total Current Assets – Inventory
Table-2
2010 12929.97 21396.16 0.60
2011 17040.22 25227.88 0.67
2012 37121.33 38228.64 0.97
2013 38041.13 42895.38 0.88
2014 29966.56 43746.43 0.68

43
Liquid Ratio of ICICI Bank for the period of 2005-2009
0.6
0.67
0.97
0.88
0.68
0
0.2
0.4
0.6
0.8
1
1.2
2005 2006 2007 2008 2009
Years
Ratio
Liquid Ratio
 Interpretation:
A quick ratio of 1:1 is considered favourable because for every rupee of current
liability,there is atleast one rupee of liquid assets. A higher value of ratio is
considered favourable. Here this ratio is less than 1 in 2010,2011 & 2012 but in
2012 & 2013 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 capital
employed, the overall profitability can also be judged by calculating earning per
share with the help of the following formula:
2010-2014
2010 2011 2012 2013 2014

44
Earnings Per Share Ratio of ICICI Bank for the
period of 2005-2009
27.22 28.55
34.59
37.37
33.78
0
5
10
15
20
25
30
35
40
2005 2006 2007 2008 2009
Years
Ratio
Earnings Per Share
Earning Per Equity Share = Net Profit after Tax –Prefrence Dividend
No. of Equity shares
The earning per share of the company helps in determining the market price of the
equity shares of the company. A comparison of earning per share of the company
with another will also help in deciding whether the equity share capital is being
effectively used or not. It also helps in estimating the company’s capacity to pay
dividend to its equity shareholders.
Table-3
Year Net Income Available
For Shareholders
(Rs. In crores)
No. Of Equity
Shares
(Rs. In crores)
EPS
2010 2005.2 73.6716 27.22
2011 2540.07 88.9823 28.55
2012 3110.22 89.9266 34.59
2013 4157.73 111.2687 37.37
2014 3758.13 111.325 33.78
Earning Per Share Ratio of ICICI Bank for the
period of 2010-2014
2010 2011 2012 2013 2014

45
 Interpretation:
Earning Per Share is the most commonly used data which reflects the
performance and prospects of the company.It affects the market price of shares.
Here the Earning Per Share is shows a persistent increase till the year 2010 after
that in the year 2011 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 shows the per share dividend given to equity shareholders.It is
very helpful for potential investors to know the dividend paying capacity of the
company.It affects the market value of the company.
Dividend Per Share = Dividend Paid To EquityShareholders
No. Of Equity Shares
Table-4
Year Dividend Paid
(Rs. In crores)
No. Of Equity Shares
(Rs. In crores)
DPS
2010 632.96 73.6716 8.59
2011 759.33 88.9823 8.53
2012 901.17 89.9266 10.02
2013 1227.7 111.2687 11.03
2014 1224.58 111.325 11

46
Dividend Per Share Ratio of ICICI Bank for the
period of 2005-2009
8.59 8.53
10.02
11.03 11
0
2
4
6
8
10
12
2005 2006 2007 2008 2009
Years
Ratio
Dividend Per Share
Ratio
 Interpretation:
Here the Dividend Per Share is increasing year after year except a little decline
in 2009.otherwise the dividend per share ratio of the bank is quite satisfactory
which shows the bank has a good dividend 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 business
are being managed. An increase in the ratio over the previous period indicates
improvement in the operational efficiency of the business. The ratio is thus on
effectivemeasure to check the profitability of business.
Dividend per share Ratio of ICICI Bank for the
period of 2010 -2014
2010 2011 2012 2013 2014

47
Net Profit Ratio of ICICI Bank for the period of 2005-2009
21.3
18.42
13.52 13.5
12.08
0
5
10
15
20
25
2005 2006 2007 2008 2009
Years
Ratio(%)
Net Profit Ratio
Table-5
Year Net Profit
(Rs. In crores)
Sales
(Rs. In crores)
Net Profit Ratio
(in %)
2010 2005.2 9409.9 21.3
2011 2540.07 13784.49 18.42
2012 3110.22 22994.29 13.52
2013 4157.73 30788.34 13.5
2014 3758.13 31092.55 12.08
 Interpretation:
Although both the sales and net profit have increased during the above period
but the Net Profit 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 X100
Net Sales
Net Profit Ratio of ICICI Bank for the
period of 2010-2014
2010 2011 2012 2013 2013
Year

48
Operating Profit Ratio of ICICI Bank for the period
of 2005-2009
31.41
34.02
25.54 25.85
28.7
0
5
10
15
20
25
30
35
40
2005 2006 2007 2008 2009
Years
Ratio
Operating Profit Ratio
The difference between net profit ratio and net operating profit ratio is that
net operating profit is calculated without considering non-operating expenses and
non-operating incomes. If we deduct this ratio from 100,the result will be operating
ratio. Higher operating profit ratio enable the organization to recoup non-operating
expenses out of operating profits and provide reasonable return.
Table-6
Year Operating Profit
(Rs. In crores)
Sales
(Rs. In crores)
Operating Profit
Ratio (in %)
2010 2956 9409.9 31.41
2011 4690.67 13784.49 34.02
2012 5874.4 22994.29 25.54
2013 7960.69 30788.34 25.85
2014 8925.23 31092.55 28.7
Operating Profit Ratio of ICICI Bank for the period of 2010-2014
2010 2011 2012 2013 2014
Years

49
 Interpretation:
In the year 2010 & 2011 the operating profit is 31.41% & 34.02%
respectively. After that it has been consistently declined from the year 2010 till
2013 and again gaining momentum in 2014. This may be due to the reason that
operating expenses have been increased more as compared to sales 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 a sufficient return.
RETURN ON NET WORTH:
It measures the profitability of the business in view of the shareholders. It
judges the earning capacity 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:
ReturnOn NetWorth= NetProfitAfter Interest AndTax x 100
Shareholder’sFunds
Table-7
Year Net Profit After
Interest And Tax
(Rs. In crores)
Shareholder's Fund
(Rs. In crores)
Return On Net
Worth (in %)
2010 2005.2 12899.97 15.54
2011 2540.07 22555.99 11.26
2012 3110.22 24663.26 12.61
2013 4157.73 46820.21 8.88
2014 3758.13 49883.02 7.53

50
Return On Net Worth Ratio of ICICI Bank for the
period of 2005-2009
15.54
11.26
12.61
8.88
7.53
0
2
4
6
8
10
12
14
16
18
2005 2006 2007 2008 2009
Years
Ratio
Return On Net Worth
 Interpretation:
The net profit after interest and tax have increased slowly till the year 2013
followed by a downfall due to high interest payments,operating expenses and
taxation liability.consequently the networth ratio has declined considerably and has
reduced to more than half in the year 2014 than it was in 2010.
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.
100
Deposits
Credits
RatioDepositCredit
Credit means disbursement of advances
Deposit mean sum of fixed deposit,
Saving deposit and current deposit.
Return On Net Worth Ratio of ICICI Bank for the
period of 2010-2014
2010 2011 2012 2013 2014
Year

51
Credit Deposit ratio of ICICI bank for the period of
2005-2009
0.91
0.88
0.84
0.92
0.99
0.75
0.8
0.85
0.9
0.95
1
1.05
2005 2006 2007 2008 2009
Years
Ratio
Credit Deposit ratio
Table -8
Year Advances
(Rs. In crores)
Deposits
(Rs. In crores)
Credit Deposit
Ratio (in%)
2010 91405.15 99818.78 91
2011 146163.11 165083.17 88
2012 195865.6 230510.19 84
2013 225616.08 244431.05 92
2014 218310.85 218347.82 99
Interpretation:
Above table exhibits credit deposit ratio of the bank during last 5 years. In
the year 2010 ratio was 91% and it declined to 88% and 84%in the year 2011 and
2012 respectively. In the year 2013 and 2014 ratio was increased to 92% and 99%
respectively. it leads to conclusion that credit performance of the bank is very
good.
Credit Deposit ratio of ICICI Bank for the period of
2010-2014
2010- 2011- 2012- 2013- 2014
Year

52
CHAPTER-4
FINDINGS,SUGGESTIONS & CONCLUSION
Findings
 Profit before tax for the year ended March 31, 2011 (FY2011) was Rs. 5,117
crore (US$ 1,009 million), compared to Rs. 5,056 crore (US$ 997 million)
for the year ended March 31, 2010 (FY2010).
 Profit after tax for FY2011 was Rs. 3,758 crore (US$ 741 million) compared
to Rs. 4,158 crore (US$ 820 million) for FY2010 due to the higher effective
tax rate on 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 FY2010 to Rs. 8,367 crore (US$ 1,650 million) for FY2011. While the
advances declined marginally year-on-year, the net interest income increased
due to improvement in net interest margin from 2.2% in FY2010 to 2.4% in
FY2011.
 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 FY2010. The cost/average asset ratio for FY2010
was 1.8% compared to 2.2% for FY2010.
 During the year, the Bank has pursued a strategy of prioritizing capital
conservation, liquidity management and risk containment given the
challenging economic environment. This is reflected in the Bank’s strong
capital adequacy and 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 has also placed strong emphasis on efficiency
improvement and cost rationalization. The Bank continues to invest in
expansion of its branch network to enhance its deposit franchise and create
an integrated distribution network for both asset and liability products.

53
Suggestions
 Although the short term liquidity position is quite satisfactory as per
revealed by liquid ratio but the current ratio is below the ideal ratio of 2:1.So
the bank should make efforts to increase its current assets to maintain a
safety margin and to maintain a better liquidity position.
 The profitability of the bank for the period under study is not satisfactory.
Profits are increasing but not with same pace as of the expenditure due to
higher reliance on debt capital in the form of borrowings and loans for
financing capital structure. So in order to improve profitability, the bank
should reduce its dependence on external equities for meeting capital
requirements. Consequently, the interest expenses will decline and profits
will increase which is good for the bank. Similarly non productive expenses
should be curtailed to improve profitability.
 Higher trend of credit deposit ratio reveals that the bank has performed
satisfactorily as regard to granting loans and advances to generate income. It
suggests that the credit performance of bank is good and it is performing its
business well by fulfilling the major objective of granting credit and
accepting deposit. So in order to have more creditability in the market the
bank should maintain 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
earn higher amount of profits.

54
 The bank is having a greater reliance on debt capital. The increasing reliance
on external equities may prove hazardous in the long run. So in order to
remedy this situation 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. Such
service 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 public and 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 help to rural poor farmers and other living below the poverty line.
Bank can appoint commission agents for different area who can encourage
general public to invest in the capital of the bank and make more deposits in
ICICI Bank.
 The bank should simplify the procedureof advances for quick disbursement.
 To achieve organizational success a proper independent working atmosphere
should be developed to achieve desired objective more effectively.
 Last but not least, bank should adopt branch automation experiment to
control the operational cost.

55
Conclusion
On the basis of various techniques applied for the financial analysis of ICICI
Bank we can 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 the same 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 around 50% 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 main objective. 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 as the 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.

56
BIBLIOGRAPHY
Books Reffered:
 Accountancy. R.K. Mittal,A.K.Jain.
 Financial Management- Theory and Practice. Shashi.K.Gupta , R.K. Sharma.
 Essentials of CorporateFinance 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.D
Martin, 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
THANKS

PERFORMANCE APPRAISAL

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