This document is a project report submitted by a student named Vivek Shriram Mahajan to the University of Mumbai for their M.Com degree. The report analyzes ratios for two major Indian banks, State Bank of India and ICICI Bank, to evaluate their liquidity, activity, solvency, profitability, and shareholders ratios. The introduction provides background on financial management and ratio analysis. The report then gives an industry profile of each bank and provides comments on the ratio analysis.

1. 1
PROJECT REPORT ON
“Ratio analysis on Banking sector –SBI & ICICI”
Submitted to
University of Mumbai
In Partial Fulfillment of the Requirement
For
M.Com (Accountancy) Semester III
In the subject
Advanced Financial Management
By
Name of the student : - Vivek ShriramMahajan
Roll No. : - 15 -9672
Name and address of the college
K. V. Pendharkar College
Of Arts, Science & Commerce
Dombivli (E), 421203
NOVEMBER 2015

2. 2
DECLARATION
I VIVEK SHRIRAM MAHAJAN Roll No. 15 – 9672, the student of
M.Com (Accountancy) Semester III (2015), K. V. Pendharkar College,
Dombivli, Affiliated to University of Mumbai, hereby declare that the
project for the subject Advanced Financial Management of Project report on
“Ratio analysis on banking sector –SBI & ICICI” submitted by
me to University of Mumbai, for semester III examination is based on actual
work carried by me.
I further state that this work is original and not submitted anywhere else for
any examination.
Place:Dombivli
Date:
Signature of the Student
Name: - Vivek Shriram Mahajan
Roll No: - 15 -9672

3. 3
ACKNOWLEDGEMENT
It is a pleasure to thank all those who made this project work
possible.
I Thank the Almighty God for his blessings in completing this task.
The successful completion of this project is possible only due to
support and cooperation of my teachers, relatives, friends and well-
wishers. I would like to extend my sincere gratitude to all of them.
I am highly indebted to Principal A.K.Ranade, Co-ordinater
P.V.Limaye, and my subject teacher Prajakta Karmarkar for
their encouragement, guidance and support.
I also take this opportunity to express sense of gratitude to my
parents for their support and co-operation in completing this
project.
Finally I would express my gratitude to all those who directly and
indirectly helped me in completing this project.
Name of the student
Vivek Shriram Mahajan

4. 4
Table of Contents:
CHAPTER No Topic Page no
CHAPTER 1 Introduction
Introduction to Subject………………………..
Definition ……...…………………
Objectives of Financial Management.....................
Functions of Financial Management.......................
5
5
6
8
CHAPTER 2 Introduction to Ratio Analysis
Liquidity Ratio.........................................
Activity Ratio.........................................
Solvency Ratio..........................................
Profitability Ratio......................................
Shareholders Ratio..................................
10
11
11
12
13
CHAPTER 3 Industry Profile
State Bank of India ……………………
ICICI Bank............................................
14
20
CHAPTER 4 Comments
Comments ……………………. 26
Webiliography………………………………. 29

5. 5
CHAPTER 1: Introduction
Introduction to Subject
Meaning of Financial Management
Financial Management means planning, organizing, directing and controlling the
financial activities such as procurement and utilization of funds of the enterprise. It
means applying general management principles to financial resources of the enterprise.
Definition:
James Van Morne defines Financial Management as follows:
“Planning is an inextricable dimension of financial management. The term financial
management connotes that funds flows are directed according to some plan”. Financial
managements can be said a good guide for allotment of future resources of an
organisation.
Preparing and implementation of some plans can be said as financial management. In
other words, collection of funds and their effective utilisation for efficient running of and
organization is called financial management. Financial management has influence on all
activities of an organisation. Hence it can be said as an important one.
Its main responsibility is to complete the finance function successfully. It also has
relations with other business functions. All business decisions also have financial
implications. According to Raymond Chambers, Management of finance function is the
financial management’.
However, financial management shall not be considered as the profit extracting device. If
finance is properly utilised through plans, they lead to profits. Besides, without profits
there won’t be finance generation. All these are facts. But this is not complete.
The implication of financial management is not only attaining efficiency and getting
profits but also maximising the value of the firm. It facilitates to protect the interests of
various classes of people related to the firm.
Hence, managing a firm for profit maximisation is not the meaning for financial
management. Financial management is applicable to all kinds of organisations.
According to Raymond Chambers, ‘the word financial management is applicable to all
kinds of firms irrespective of their objectives’.

6. 6
Financial management refers to the efficient and effective management of money
(funds) in such a manner as to accomplish the objectives of the organization. It is the
specialized function directly associated with the top management. The significance of this
function is not seen in the 'Line' but also in the capacity of 'Staff' in overall of a company.
It has been defined differently by different experts in the field.
The term typically applies to an organization or company's financial strategy, while
personal finance or financial life management refers to an individual's management
strategy. It includes how to raise the capital and how to allocate capital, i.e. capital
budgeting. Not only for long term budgeting, but also how to allocate the short term
resources like current liabilities. It also deals with the dividend policies of the share
holders.
DEFINITION of 'Strategic Financial Management’
Managing an organization's financial resources so as to achieve its business objectives
and maximize its value. Strategic financial management involves a defined sequence of
steps that encompasses the full range of a company's finances, from setting out objectives
and identifying resources, analyzing data and making financial decisions, to tracking the
variance between actual and budgeted results and identifying the reasons for this
variance. The term "strategic" means that this approach to financial management has a
long-term horizon.
Objectives of Financial Management:
The aims of financial management should be useful to the firm’s proprietors, managers,
employees and consumers. For this purpose the only way is maximization of firm’s
value.
The following aspects have place in maximizing firm’s value:
1. Rice in profits:
If the firm wants to maximize its value, it should’ increase its profits and revenues. For
this purpose increase of sales volume or other activities can be taken up. It is the general
feature of any firm to increase profits by proper utilisation of all opportunities and plans.
Theoretically, firm gets maximum profits if it is under equilibrium. At that stage the
average cost is minimal and the marginal cost and the marginal revenues are equal. Here,
we can’t say the sales because there must be suitable market for the increased sales.
Further, the above costs must also be controlled.

7. 7
2. Reduction in cost:
Capital and equity funds are utilised for production. So all types of steps should be taken
to reduce firm’s cost of capital.
3. Sources of funds:
It should be decided by keeping in view the value of the firm to collect funds through
issue of shares or debentures.
4. Reduce risks:
There won’t be profits without risk. But for this reason if more risk is taken, it may
become danger to the existence of the firm. Hence risk should be reduced to minimum
level.
5. Long run value:
It should be the feature of financial management to increase the long-run value of the
firm. To earn more profits in short time, some firms may do the activities like releasing of
low quality goods, neglecting the interests of consumers and employees.
These trials may give good results in the short run. But for increasing the value of the
firm in the long run, avoiding; such activities are more essential.

8. 8
Functions of FinancialManagement
1. Estimation of capital requirements: A finance manager has to make estimation with
regards to capital requirements of the company. This will depend upon expected costs
and profits and future programmes and policies of a concern. Estimations have to be
made in an adequate manner which increases earning capacity of enterprise.
2. Determination of capital composition: Once the estimation have been made, the
capital structure have to be decided. This involves short- term and long- term debt equity
analysis. This will depend upon the proportion of equity capital a company is possessing
and additional funds which have to be raised from outside parties.
3. Choice of sources of funds: For additional funds to be procured, a company has many
choices like-
 Issue of shares and debentures
 Loans to be taken from banks and financial institutions
 Public deposits to be drawn like in form of bonds.
Choice of factor will depend on relative merits and demerits of each source and period of
financing.
4. Investment of funds: The finance manager has to decide to allocate funds into
profitable ventures so that there is safety on investment and regular returns is possible.
5. Disposal of surplus: The net profits decision have to be made by the finance manager.
This can be done in two ways:
 Dividend declaration - It includes identifying the rate of dividends and other
benefits like bonus.
 Retained profits - The volume has to be decided which will depend upon
expansional, innovational, diversification plans of the company.
6. Management of cash: Finance manager has to make decisions with regards to cash
management. Cash is required for many purposes like payment of wages and salaries,
payment of electricity and water bills, payment to creditors, meeting current liabilities,
maintainance of enough stock, purchase of raw materials, etc.
7. Financial controls: The finance manager has not only to plan, procure and utilize the
funds but he also has to exercise control over finances. This can be done through many
techniques like ratio analysis, financial forecasting, cost and profit control, etc.

9. 9
Some of the important functions which every finance manager has to take are as
follows:
i. Investment decision
ii. Financing decision
iii. Dividend decision
A. Investment Decision
This decision relates to careful selection of assets in which funds will be invested by the
firms. A firm has many options to invest their funds but firm has to select the most
appropriate investment which will bring maximum benefit for the firm and deciding or
selecting most appropriate proposal is investment decision.
The firm invests its funds in acquiring fixed assets as well as current assets. When
decision regarding fixed assets is taken it is also called capital budgeting decision.
Factors Affecting Investment/Capital Budgeting Decisions
1. Cash Flow of the Project
2. Return on Investment
3. Risk Involved
4. Investment Criteria
B. Financing Decision
The second important decision which finance manager has to take is deciding source of
finance. A company can raise finance from various sources such as by issue of shares,
debentures or by taking loan and advances. Deciding how much to raise from which
source is concern of financing decision.
C. Dividend Decision
This decision is concerned with distribution of surplus funds. The profit of the firm is
distributed among various parties such as creditors, employees, debenture holders,
shareholders, etc. This decision is also called residual decision because it is concerned
with distribution of residual or left over income. Generally new and upcoming companies
keep aside more of retain earning and distribute less dividend whereas established
companies prefer to give more dividend and keep aside less profit.

10. 10
CHAPTER 2: Introduction to Ratio Analysis
Ratio analysis is a commonly used tool of financial statement analysis. Ratio is a
mathematical relationship between one number to another number. Ratio is used as an
index for evaluating the financial performance of the business concern. An accounting
ratio shows the mathematical relationship between two figures, which have meaningful
relation with each other. Ratio can be classified into various types. Classification from
the point of view of financial management is as follows:
● Liquidity Ratio
● Activity Ratio
● Solvency Ratio
● Profitability Ratio
● Shareholders Ratio
Liquidity Ratio
It is also called as short-term ratio. This ratio helps to understand the liquidity in a
business which is the potential ability to meet current obligations. This ratio expresses the
relationship between current assets and current assets of the business concern during a
particular period. The following are the major liquidity ratio:
Sr .No
Ratio Formula
Significant
Ratio
1 Current Ratio
Current Assets__
Current Liabilities
2:1
2 Quick Ratio _ Quick Assets__
Quick Liabilities
1:1

11. 11
Activity Ratio
It is also called as turnover ratio. This ratio measures the efficiency of the current assets
and liabilities in the business concern during a particular period. This ratio is helpful to
understand the performance of the business concern. Some of the activity ratios are given
below:
S. No. Ratio Formula
1. StockTurnover Ratio
Cost of Sales
Average Inventory
2. Debtors Turnover Ratio
Credit Sales
Average Debtors
3. Creditors Turnover Ratio
Credit Purchase
AverageCredit
4.
Working Capital
Turnover Ratio
Sales ______
Net Working Capital
Solvency Ratio
It is also called as leverage ratio, which measures the long-term obligation of the business
concern. This ratio helps to understand, how the long-term funds are used in the business
concern. Some of the solvency ratios are given:

12. 12
Sr. No Ratio Formula
1. Debt-Equity Ratio
External Equity
Internal Equity
2. Proprietary Ratio
Shareholder / Shareholder 's
Fund
Total Assets
3. Interest Coverage Ratio
EBIT
Fixed Interest
Charges
Profitability Ratio
Profitability ratio helps to measure the profitability position of the business concern.
Some of the major profitability ratios are given below.
S. No Ratio Formula
1. Gross Profit Ratio Gross Profit * 100
Net Sales
2. Net Profit Ratio
Net Profit after
tax * 100
Net Sales
3. Operating Profit Ratio Operating Net Profit * 100
Sales
4. Return in Investment
Net Profit after
tax * 100
Shareholder Fund

13. 13
Shareholderratios
Earnings per share = Net Amount Available to Eq.
Shareholders
Number of Shares Outstanding
Dividends per share = Dividends paid to shareholders
Number of shares outstanding
Dividend payout ratio = Dividends
Earnings
Profit & Loss A/c Ratio
Operating Ratio = Operating Expenses
Net Sales
Operating Exp = COGS + Administrative Exp +Selling & Distribution Exp
+ Finance Exp

14. 14
CHAPTER 3: INDUSTRYPROFLE
STATE BANK OF INDIA (SBI)
The evolution of State Bank of India can be traced back to the first decade of the 19th
century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June
1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January
1809. It was the first ever joint-stock bank of the British India, established under the
sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay
(established on 15 April 1840) and the Bank of Madras (established on 1 July 1843)
followed the Bank of Bengal. These three banks dominated the modern banking scenario
in India, until when they were amalgamated to form the Imperial Bank of India, on 27
January 1921.
An important turning point in the history of State Bank of India is the launch of the first
Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian
economy in general and the rural sector of the country, in particular. Until the Plan, the
commercial banks of the country, including the Imperial Bank of India, confined their
services to the urban sector. Moreover, they were not equipped to respond to the growing
needs of the economic revival taking shape in the rural areas of the country. Therefore, in
order to serve the economy as a whole and rural sector in particular, the All India Rural
Credit Survey Committee recommended the formation of a state-partnered and state-
sponsored bank.
The All India Rural Credit Survey Committee proposed the takeover of the Imperial
Bank of India, and integrating with it, the former state-owned or state-associate banks.
Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the
State Bank of India (SBI) was established on 1 July 1955. This resulted in making the
State Bank of India more powerful, because as much as a quarter of the resources of the
Indian banking system were controlled directly by the State. Later on, the
State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the
State Bank of India to make the eight former State-associated banks as its subsidiaries.
The State Bank of India emerged as a pacesetter, with its operations carried out by the
480 offices comprising branches, sub offices and three Local Head Offices, inherited
from the Imperial Bank. Instead of serving as mere repositories of the community's
savings and lending to creditworthy parties, the State Bank of India catered to the needs
of the customers, by banking purposefully. The bank served the heterogeneous financial
needs of the planned economic development.

15. 15
History
The roots of the State Bank of India lie in the first decade of the 19th century, when the
Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The
Bank of Bengal was one of three Presidency banks, the other two being the Bank of
Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July
1843). All three Presidency banks were incorporated as joint stock companies and were
the result of royal charters. These three banks received the exclusive right to issue paper
currency till 1861 when, with the Paper Currency Act, the right was taken over by the
Government of India. The Presidency banks amalgamated on 27 January 1921, and the
re-organized banking entity took as its name Imperial Bank of India. The Imperial Bank
of India remained a joint stock company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial Bank
of India. On 1 July 1955, the imperial Bank of India became the State Bank of India. In
2008, the Government of India acquired the Reserve Bank of India's stake in SBI so as to
remove any conflict of interest because the RBI is the country's banking regulatory
authority.
BOARD OF DIRECTORS
1. Smt. Arundhati Bhattacharya Chairman 19(a)
2. Shri P. Pradeep Kumar Managing Director 19 (b)
3. Shri B. Sriram Managing Director 19 (b)
4. Shri.V.G.Kannan Managing Director 19 (b)
5. Shri Rajnish Kumar Managing Director 19 (b)
6. Shri Sanjiv Malhotra Director 19 (c)
7. Shri Sunil Mehta Director 19 (c)
8. Shri M.D. Mallya Director 19 (c)
9. Shri Deepak I. Amin Director 19 (c)
10. Shri TribhuwanNathChaturvedi Director 19 (d)
11. Ms. Anjuly Chib Duggal Director 19 (e)

16. 16
SBI Balance Sheet
BALANCE SHEET OF STATE BANK OF INDIA FOR THE YEAR
ENDED MARCH 2015
Particluars Amt
Capital and Liabilities:
Total Share Capital 746.57
Equity Share Capital 746.57
Share Application Money 0
Preference Share Capital 0
Reserves 127,691.65
Net Worth 128,438.22
Deposits 1,576,793.24
Borrowings 205,150.29
Total Debt 1,781,943.53
Other Liabilities & Provisions 137,698.05
Total Liabilities 2,048,079.80
Assets
Cash & Balances with RBI 115,883.84
Balance with Banks,Money at Call 58,977.46
Advances 1,300,026.39
Investments 495,027.40
Gross Block 9,329.16
Revaluation Reserves 0
Net Block 9,329.16
Other Assets 68,835.55
Total Assets 2,048,079.80
ContingentLiabilities 1,093,422.51
Book Value (Rs) 172.04

17. 17
SBI Profit & Loss A/c
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH
2015
Particulars Amt
Income
InterestEarned 152,397.07
Other Income 22,575.89
Total Income 174,972.96
Expenditure
Interestexpended 97,381.82
Employee Cost 23,537.07
Selling,Admin & Misc Expenses 39,836.01
Depreciation 1,116.49
Operating Expenses 38,677.64
Provisions & Contingencies 25,811.93
Total Expenses 161,871.39
Net Profit for the Year 13,101.57
Profit broughtforward 0.32
Total 13,101.89
Preference Dividend 0.00
Equity Dividend 2,557.28
Corporate Dividend Tax 520.65
Earning Per Share (Rs) 17.55
Equity Dividend (%) 350
Book Value (Rs) 172.04
Appropriations
Transfer to Statutory Reserves 10,023.64
Transfer to Other Reserves 0
Proposed Dividend/Transfer to Govt 3,077.93
Balance c/f to Balance Sheet 0.32
Total 13,101.89

18. 18
SBI Cash Flow Statements
NET CASH FLOW OF STATE BANK OF INDIA FOR THE YEAR
ENDED 31 MSRCH 2015
Particulars Amt
Net Profit Before Tax 19313
Net Cash From Operating Activities 47566.44
Net Cash (used in)/from Investing Activities -3258.1
Net Cash (used in)/from Financing Activities -2289.12
Net (decrease)/increase InCash and Cash Equivalents 42019.22
Opening Cash & Cash Equivalents 132549.63
Closing Cash & Cash Equivalents 174861.3
1. Current Ratio = Current Assets___ = 204807.80 = 1.48 : 1
Current Liabilities 137698.05
2. Quick Ratio = Quick Assets___ = 68835.54 = 0.49 : 1
Quick Liabilities 137698.05
3. Net profit Ratio = Net Profit Before Tax * 100 = 19313.96 *100 =14.3%
(before tax) Net Sales 134942.97
4. Net profit Ratio = Net Profit After Tax * 100 = 13101.57 *100 =9.70%
(after tax) Net Sales 134942.97

19. 19
5. Operating Ratio = Operating Expenses * 100 = 38677.64 *100 =28.66%
Net Sales 134942.97
6. Proprietory Ratio = Proprietor’s Funds * 100 = 128438.22 *100 = 62.71%
Total Asset 2048079.80
7. Return on Capital Employed (ROCE)
= Earnings before Interest and Tax (EBIT)
Capital Employed
= 19313.96 = 0.10
1911128.32
8. Debt - Equity Ratio = Total Liabilities
Shareholders' Equity
= 2048079.80
128438.22
= 15.94
9. Earning Per Share = Net Income – Preferred Dividends
Average Outstanding Common Shares
= 17.55

20. 20
Industrial Credit and Investment Corporationof India Bank (ICICI)
ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial
institution, in 1994. Four years later, when the company offered ICICI Bank's shares to
the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank
offered made an equity offering in the form of ADRs on the New York Stock Exchange
(NYSE), thereby becoming the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired the
Bank of Madura Limited in an all-stock amalgamation. Later in the year and the next
fiscal year, the bank made secondary market sales to institutional investors.
With a change in the corporate structure and the budding competition in the Indian
Banking industry, the management of both ICICI and ICICI Bank were of the opinion
that a merger between the two entities would prove to be an essential step. It was in 2001
that the Boards of Directors of ICICI and ICICI Bank sanctioned the amalgamation of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. In the following
year, the merger was approved by its shareholders, the High Court of Gujarat at
Ahmedabad as well as the High Court of Judicature at Mumbai and the Reserve Bank of
India.
ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited. Overseas, its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE). As of December 31, 2008,
ICICI is India's second-largest bank, boasting an asset value of Rs. 3,744.10 billion and
profit after tax Rs. 30.14 billion, for the nine months, that ended on December 31, 2008.
ICICI Bank Limited (the Bank) is a banking company engaged in providing a range of
banking and financial services, including commercial banking and treasury operations. It
operates under four segments: retail banking, wholesale banking, treasury and other
banking. The Bank’s subsidiaries include ICICI Prudential Life Insurance Company
Limited, ICICI Lombard General Insurance Company Limited, ICICI Trusteeship
Services Limited, ICICI Prudential Pension Funds, Management Company Limited,
ICICI Home Finance Company Limited and ICICI Securities Limited.

21. 21
Present Scenario
ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited. Overseas, its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE). As of December 31, 2008,
ICICI is India's second-largest bank, boasting an asset value of Rs. 3,744.10 billion and
profit after tax Rs. 30.14 billion, for the nine months, that ended on December 31, 2008.
Branches & ATMs
ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has
1,420 branches and about 4,644 ATMs. Talking about foreign countries, ICICI Bank has
made its presence felt in 18 countries - United States, Singapore, Bahrain, Hong Kong,
Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in
United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and
Indonesia. The Bank proudly holds its subsidiaries in the United Kingdom, Russia and
Canada out of which, the UK subsidiary has established branches in Belgium and
Germany.
History
ICICI Bank was established by the Industrial Credit and Investment Corporation of India
(ICICI) , an Indian financial institution, as a wholly owned subsidiary in 1994. The parent
company was formed in 1955 as a joint-venture of the World Bank, India's public-sector
banks and public-sector insurance companies to provide project financing to Indian
industry.[9][10] The bank was initially known as the Industrial Credit and Investment
Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank.
The parent company was later merged with the bank.
ICICI Bank launched internet banking operations in 1998.
ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering
of shares in India in 1998, followed by an equity offering in the form of American
Depositary Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura
Limited in an all-stock deal in 2001 and sold additional stakes to institutional investors
during 2001-02.
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.

22. 22
ICICI Balance Sheet
BALANCE SHEET OF ICICI BANK FOR THE YEAR ENDED MARCH
52015
Particluars Amt
Capital and Liabilities:
Total Share Capital 1,159.66
Equity Share Capital 1,159.66
Share Application Money 7.44
Preference Share Capital 0
Reserves 79,262.26
Net Worth 80,429.36
Deposits 361,562.73
Borrowings 172,417.35
Total Debt 533,980.08
Other Liabilities & Provisions 31,719.86
Total Liabilities 646,129.30
Assets
Cash & Balances with RBI 25,652.91
Balance with Banks,Money at Call 16,651.71
Advances 387,522.07
Investments 186,580.03
Gross Block 4,725.52
Revaluation Reserves 0
Net Block 4,725.52
Other Assets 24,997.05
Total Assets 646,129.29
ContingentLiabilities 868,190.58
Book Value (Rs) 138.72

23. 23
ICICI Profit & Loss A/c
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2015
Particulars Amt
Income
InterestEarned 49,091.14
Other Income 12,176.13
Total Income 61,267.27
Expenditure
Interestexpended 30,051.53
Employee Cost 4,749.88
Selling,Admin & Misc Expenses 14,631.56
Depreciation 658.95
Operating Expenses 11,495.83
Provisions & Contingencies 8,544.56
Total Expenses 50,091.92
Net Profit for the Year 11,175.35
Profit broughtforward 13,318.59
Total 24,493.94
Preference Dividend 0.00
Equity Dividend 2,898.81
Corporate Dividend Tax 271.15
Earning Per Share (Rs) 19.28
Equity Dividend (%) 250
Book Value (Rs) 138.72
Appropriations
Transfer to Statutory Reserves 4,062.57
Transfer to Other Reserves 0
Proposed Dividend/Transfer to Govt 3,169.96
Balance c/f to Balance Sheet 17,261.42
Total 24,493.95

24. 24
ICICI Cash Flow Statement
NET CASH FLOW OF ICICI BANK FOR THE YEAR ENDED 31 MSRCH
2015
Particulars Amt
Net Profit Before Tax 15819.92
Net Cash From Operating Activities -4824.49
Net Cash (used in)/from Investing Activities -9199.56
Net Cash (used in)/from Financing Activities 15005.67
Net (decrease)/increase InCash and Cash Equivalents 775.02
Opening Cash & Cash Equivalents 41529.6
Closing Cash & Cash Equivalents 42304.62
1. Current Ratio = Current Assets___ = 429826.69= 1.35: 1
Current Liabilities 31719.86
2. Quick Ratio = Quick Assets___ = 615569.1 = 0.70 : 1
Quick Liabilities 868,190.58
3. Net profit Ratio = Net Profit Before Tax * 100 = 15819.92*100 = 25.82%
(before tax) Net Sales 61267.27
4. Net profit Ratio = Net Profit After Tax * 100 = 11175 .36 *100 = 18.24%
(after tax) Net Sales 61267.27

25. 25
5. Operating Ratio = Operating Expenses * 100 = 11495.83 *100 =78.49%
Net Sales 80429.36
6. Proprietory Ratio = Proprietor’s Funds * 100 = 615569.1 *100 = 95.27%
Total Asset 646129.29
7. Return on Capital Employed (ROCE)
= Earnings before Interest and Tax (EBIT)
Capital Employed
= 19719.91 = 0.32
61267.27
8. Debt - Equity Ratio = Total Liabilities
Shareholders' Equity
= 646129.30
81589.02
= 7.91
9. Earning Per Share = Net Income – Preferred Dividends
Average Outstanding Common Shares
= 19.28

26. 26
CHAPTER 4: Comments
 Current Ratio of SBI is 1.48 and ICICI is 1.35. Therefore in current
ration SBI is better than ICICI.
 Quick Ratio of SBI is 0.49 and ICICI is 0.70. Therefore in quick
ration ICICI better than SBI.
 Net Profit Ratio of SBI is 14.03% while in caseof ICICI it is 18.24
Therefore ICICI pays maximum tax as compareto SBI.
 Operating Ratio of SBI is 78.49 and ICICI is 28.49. In operating
ration of SBI is more than ICICI.
 Proprietory Ratio of SBI is 62.71% and ICICI is 75.27%. It is
concluded that ICICI having more own funds than SBI.
 Return On Capital Employed Ratio of SBI is 0.32 and ICICI is 0.10. It
is concluded that SBI pays more on borrowed fund as compared to
ICICI.
 Debt Equity Ratio of SBI is 15.94 and ICICI is 7.91. Therefore in debt
equity ration SBI better than ICICI.
 Earning Per Share of SBI is Rs. 19.28 and ICICI is Rs. 17.55.
Therefore in debt earning per share SBI better than ICICI.

27. 27
Webilography
 http://www.slideshare.net
 http:// http://profit.ndtv.com/
 https://en.wikipedia.org
 http://www.moneycontrol.com/