Analysis on ICICI Bank_2020

1. By Kummari Uma Mahesh
Institute of Management Studies –
Banaras Hindu University

2. TABLE OF CONTENTS:
 General Overview
 Shareholding Pattern
 QIP Allotment – 2020
 Management
 SWOT Analysis
 Financial Outlook
 Competitor Analysis
 Conclusion

3. General Overview:
 ICICI Bank was established by the Industrial
Credit and Investment Corporation of India
(ICICI), which was formed in 1955 as a joint
venture of the World Bank.
 ICICI Bank was established in the year 1994.
 It launched internet banking operations in
year 1998.
 In 2000, ICICI Bank became the first Indian
bank to list on the New York Stock Exchange
and it is listed on BSE & NSE .
 Headquarters:
 Registered Office: Vadodara, Gujarat.
Gujarat.
 Corporate Office: Mumbai,
Maharashtra.
 Industry: Banking & Financial Services.
 ICICI Bank is India's second largest bank.

4. Shareholding pattern:
 Latest shareholding pattern post QIP allotment*.

5. Continue..,
 Majority of the company’s stake held by Domestic Institutional Investors which
decreased from 49.53% to 47.49% in last 1 year.
 Domestic Institutional Investors includes:
 Financial Institutions
 Banks
 Insurance Companies
 Mutual Funds etc.,
 Following the Domestic Institutional Investors, Foreign Institutional Investors &
Foreign Portfolio Investors held majority of the company’s stake, which increased
from 43.02% to 44.89% in last 1 year.
 There are no pledged share holders and promoters.

6. QIP Allotment Details (2020):
 ICICI Bank has raised Rs. 15,000/- crore via QIP.
 ICICI bank has issued 41.89 crore shares @Rs.358/- per share. The issue opened
on Aug 10 and closed on Aug 14.
 The bank has successfully completed its QIP. Major Investors in this deal includes:
 Monetary Authority of Singapore – 11.06%.
 Morgan Stanley Investment Funds – 7.31%.
 Societe Generale – 5.55%.
 Other participants include global and domestic investors community like FPI,
Domestic Mutual Funds, Insurance Companies etc.,

7. Management:
Mr. Girish Chandra Chaturvedi – Non Executive Chairman.
 The board of directors appointed him as a Non – Executive part time chairman
on 1st July 2018.
 Mr. Chaturvedi was an IAS officer, Uttar Pradesh(1977 batch). He served GOI at
various levels across number of sectors, including Banking, Insurance, Pension,
Health, FamilyWelfare etc.,
 Currently, he is also the chairman of National Stock Exchange(NSE).
Mr. Sandeep Bakhshi – Managing Director & CEO.
 Mr. Bakhshi, an employee of ICICI since 1986, was appointed as MD & CEO in
June 2018.
 He has handled various assignments across the group in ICICI Limited, ICICI
Lombard General Insurance, ICICI Bank and ICICI Prudential Life Insurance.
 In August 2019 he was reported to be one of the highest paid CEOs of any
Indian bank with a monthly salary of ₹22 lakh.

8. Continue.,
Mr. Anup Bagchi – Executive Director
 Mr. Anup Bagchi is an Executive Director on the Board of ICICI
Bank since February 1, 2017.
 Prior to this, Mr. Bagchi was the Managing Director & CEO of
ICICI Securities Limited.
Ms. Vishaka Mulye – Executive Director
 Ms. Vishakha Mulye is an Executive Director on the Board of
ICICI Bank since January 2016.
 Ms. Mulye, a Chartered Accountant, has been with the ICICI
Group since 1993.

9. S.W.O.T Analysis:
S
W
O
T
EAKNESS
PPORTUNITIES
T
R
E
N
G
T
H
S
H
R
E
A
T
S
 Company with High Debt.
 Decline in Net cash flow.
 Returns on Assets are decreasing from past 2 years.
Weakness:
 Effective utilization of capital.
 FII/FPI increasing their share holding.
 Increase in revenue Q-O-Q.
 Company with zero promoter pledge.
Strengths:
 Brokers and rating agencies upgraded their target buy.
 More than 10% increase in last 3 months.
 From technical side, RSI indicates price strength.
 Expanding business to the lower and middle income groups.
Opportunities:
 Higher Market Cap with low public share holding.
 Increase in NPA’s.
 Stock with little bit expensive valuation.
 Threat of substitutes.
Threats:

10. Financial Outlook:
Total Deposits:
 Total deposits rose from Rs. 4,214.26/- billion to Rs.
7,709.69/- billion from March 2016 to March 2020.
 18.1% increase in total depositsY-O-Y.
 Average CASA – 42.7%.
Total Advances:
 Total Advances rose from Rs.4,352.64/- billion to Rs.
6,452.90/- billion from March 2016 to March 2020.
 Retail accounts to more than 63% of Advances are given.
 Around 10% increase in total advancesY-O-Y.

11. Competitor Analysis:
Valuation:

12. Continue.,
 P/E ratio is little bit higher compared to it’s
competitor HDFC Bank Ltd and is also high
compared to sector P/E. So, Investors need
to be cautious.
 The stock went to it’s 52 week low during
the announcement of lockdown.
 Currently, the stock is trading @Rs.409/- per
share. Compared to it’s 52 week high,
investor is getting this stock at a discounted
price.
 Share Price is way higher compared to fair
value/ book value but trading way less
compared to it’s competitors HDFC Bank Ltd
& Kotak Mahindra Bank Ltd, whose P/B are
at 3.48 & 4.18. ICICI can be best alternative
if Investor shows interest in banking sector.
Some Other Financial Highlights:

13. Conclusion:
 The company has strong management and really coping up well during this
pandemic time.
 The financials of company are exceptionally well but was bit volatile in last 3
months due to global pandemic, which is uncertain.
 Banking sector is one of the most affected one during this pandemic. It is doing as
good as it’s competitors to recover and has given more than 10% returns in last 3
months.
 Valuation of the company is one of the concerns but is in better position compared
to its competitors.
 Overall, It has edge over it’s competitors and is one of the best pics in banking
sector.