SUMMER TRAINING PROJECT REPORT ON
ANALYSIS OF FINANCIAL STATEMENT (BALANCE SHEET & P&L ACCOUNT) OF ICICI BANK AGRA Towards partial fulfillment of Master of Business Administration (MBA) (Affiliated to U. P. Technical University, Lucknow) INDUSRTY GUIDE: MR.ASHISH MAHENDRU
FACULTY GUIDE: CHHAYA MANI TRIPATHI
SUBMITTED BY: SAKAR SHUKLA ROLL NO: 1305470084 M.B.A IIIRD SEMESTER
Session 2014-2015 Department of Management
Babu Banarasi Das National Institute of Technology & Management Sector 1, Akhilesh Das nagar, Faizabad Road, Lucknow(U. P.), India
DECLARATION I hereby declare that the project report entitled “A STUDY OF FINANCIAL STATEMENT OF ICICI BANK” is the produce of my sincere effort. This Summer Internship Project Report is being submitted by me at “BABU BANARASI DAS NATIONAL INSTITUTE OF TECHNOLOGY& MANAGEMENT, LUCKNOW” for the Partial fulfillment of the course M.B.A. and the report has not been submitted to any other educational institution for any other course.
Sakar Shukla Roll no.- 1305470084 DATE:
M.B.A IIIrd Semester B.B.D.N.I.T.M
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ACKNOWLEDGEMENT I express my sincere thanks to my project guide, MR.ASHISH MAHENDRU, MANAGER ICICI BANK, AGRA for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. I would also like to thank the supporting staff of ICICI for their help and cooperation throughout our project. My deepest thank goes to Dr. Pooja Bhatia, Head, Department of management, BBDNITM, Lucknow for her valuable guideline.
Sakar Shukla
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PREFACE Modern organizations are highly complex ad dynamics systems. They operate under very turbulent social economic and political environment. They are required to reconcile several incompatible goals. Conflicting roles and divergent interest they are also fraught with the use risk and uncertainties, hence tactful management of such organization to plan to execute guide, coordination and control the performance of people to achieve predetermined goals. Management has to keep the organization vibrant moving and in equilibrium. It has to achieve goal which themselves are changing it is therefore a problem highly complex and ticklish.
This information will be asset to finance manager in making effective decisions. The researchers are used to acquire and analyze information and to make suggestions to management as to how financial problems should be solved.
The objective of this project is to enable the students to understand the application of the academics in the real business life. I am fully confident that this project report will be extremely useful to the management.
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EXECUTIVE SUMMARY
Analysis and Interpretation of the financial statement has now become an important technique of credit appraisal. Though the basic technique of appraisal remains the same in all the cases but the approach and the emphasis in analysis vary. Analysis of financial position on the basis of past and current records. Analysis of financial statement help in making the future decision and strategies. Therefore, it is very necessary for every organization whether it is a financial or manufacturing etc. to make financial statement and to analysis it.
ICICI Bank was originally promoted in 1994 by ICICI limited, an Indian financial institution, and was its wholly owned subsidiary. Income statements of the ICICI motors for years99-00 to 05-06 are the business mirror, which reflect the financial position and operating strength and weakness of the concern. Income statement analysis which is done by using ratio analysis and trend analysis give the true picture of the company. Cost reduction is the true medicine for the revival of the company during the decline of the company which is studied in this project. The big positive of the cost reduction initiative goes beyond the statics of money saved. The crisis unified the company. Companies have emerged from this as phoniex in order to understand and analysis ratio I have used profit and loss and balance sheet of the both banks. The analysis showed various aspect of bank regarding their financial system. Observation also indicate most widely emphasis goal of the long term and short term requirement.
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TABLE OF CONTENTS S.No
Title
Page No.
1.
Introduction
1
2.
Company profile
15
3.
Objective of research
48
4.
Research methodology
50
5
Problems and Limitations
58
6.
Analysis & interpretation
60
7.
Findings
81
8.
SWOT analysis
86
9.
Suggestion/Recommendation
88
10.
Conclusion
91
11.
Annexure
93
12.
Bibliography
99
6
INTRODUCTION
7
INTRODUCTION OF THE TOPIC 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.
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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 and conclusions. Financial statement is the process of selection, relation and evaluation.
Features of Financial Analysis o To present a complex data contained in the financial statement in simple and understandable form. o To classify the items contained in the financial statement in convenient and rational groups. o To make comparison between various groups to draw various conclusions. Purpose of Analysis of financial statements
To know the earning capacity or profitability.
To know the solvency.
To know the financial strengths.
To know the capability of payment of interest & dividends.
To make comparative study with other firms.
To know the trend of business.
To know the efficiency of mgt.
To provide useful information to mgt.
Procedure of Financial Statement Analysis
The following procedure is adopted for the analysis and interpretation of financial statements:9
The analyst should acquaint himself with principles and postulated of accounting. He should know the plans and policies of the management so that he may be able to find out whether these plans are properly executed or not. The extent of analysis should be determined so that the sphere of work may be decided. If the aim is find out. Earning capacity of the enterprise then analysis of income statement will be undertaken. On the other hand, if financial position is to be studied then balance sheet analysis will be necessary. The financial data be given in statement should be recognized and rearranged. It will involve the grouping similar data under same heads. Breaking down of individual components of statement according to nature. The data is reduced to a standard form. A relationship is established among financial statements with the help of tools & techniques of analysis such as ratios, trends, common size, fund flow etc. The information is interpreted in a simple and understandable way. The significance and utility of financial data is explained for help in decision making. The conclusions drawn from interpretation are presented to the management in the form of reports.
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Types Of Financial Analysis There are different ways of analysis the financial statements:
1. On The Basis Of Process Of Analysis
a) Horizontal Analysis: This is used when the financial statement of a number of years are to be analysed. Such analysis indicates the trends and the increase or decrease in various items not only in absolute figures but also in percentage form. This analysis indicates the strengths and weaknesses of the firm. This analysis is also called as dynamic analysis because it also shows the trend of the business. b) Vertical Analysis : This is used when financial statements of a particular year or on a particular date are analyzed. For this type of analysis we generally use common size statements and the ratio analysis. It involves a study of quantitative relationship among various items of balance sheet and profit and loss account. This type of analysis is static analysis because this is based on the financial results of one year. Vertical analysis is useful when we have to compare the performance of different departments of the same company. Among these two types of analysis, horizontal analysis is more useful because it brings out more clearly the trends of working of a firm. This gives us more concrete bases for future planning.
2. On The Basis Of Information Available
a) Internal Analysis: This analysis is based on the information available to the business firm only .Hence internal analysis is made by the management. Internal analysis is more reliable and helpful for financial decisions.
b) External Analysis : This analysis is made on the basis of published statements, reports and information‟s. This analysis is made by external parties such as creditors,investors,banks,financial analysis etc. external analysis is less reliable in comparison to internal analysis because of limited and often incomplete information.
3. On The Basis Of Number Of Firms
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a) Inter-Firm Analysis : When financial analysis of two or more companies or firms are analyzed and compared over a number of accounting period, it is called inter-firm analysis. b) Intra -Firm Analysis : intra-firm analysis is concerned with the analysis of financial performance of different units or departments or segments of the same enterprise or company. Similarly when financial statements of two or more years of the same firm are analyzed and compared it is also called as intra-firm analysis.
4. On The Basis Of Objectives
a) Accounting Analysis: Accounting analysis is analysis of past financial performance and involves examining how generally accepted accounting principles and conventions have been applied in arriving at the values of assets, liabilities, revenues and expenses.
b) Prospective Analysis : Prospective analysis involves developing forecasted financial statements keeping in view the changes that are likely to shape and affect the business given the assumptions about these changes and the limitation of the forecasting technique used. This is quite complicated analysis.
Methods/Tools Of Financial Analysis A number of methods can be used for the purpose of analysis of financial statements. These are also termed as techniques or tools of financial analysis. Out of these, and enterprise can choose those techniques which are suitable to its requirements. The principal techniques of financial analysis are:a. b. c. d. e. f. g.
Comparative financial statements Common-size statements Trend analysis Ratio analysis Funds flow analysis Cash flow analysis Break even point analysis
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h. a. Comparative Financial Statements:
When financial statements figures for two or mote years are placed side-side to facilitate comparison, these are called „comparative Financial Statements‟. Such statements not only show the absolute figures of various years but also provide for columns to indicate to increase ort decrease in these figures from one year to another. In addition, these statements may also show the change from one year to another on percentage form. Such cooperative statements are of great value in forming the opinion regarding the progress of the enterprise.
Objectives purpose or significance of comparative financial statements
1.To simplify data 2.To make inter period/inter-firm comparison 3.To indicate the trends 4.To enable forecasting 5.To indicate the strengths and weaknesses of the firm 6.To compare the performance 7.To analyse expenses 8.To analyse profits
Tools for comparison of financial statements
Comparative financial statement is a tool of financial analysis that depicts change in each item of the financial statement in both absolute amount and percentage term, taking the item in preceding accounting period as base.
Comparison and analysis of financial statements may be carried out using the following tools:
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1.Comparative Balance Sheet : The comparative balance sheet shows increase and decrease in absolute terms as well as percentages ,in various assets ,liabilities and capital. A comparative analysis of balance sheets of two periods provides information regarding progress of the business firm. The main purpose of comparative balance sheet is to measure the short- term and long-term solvency position of the business.
2. Comparative Income Statement : Comparative income statement is prepared by taking figures of two or more than two accounting periods, to enable the analyst to have definite knowledge about the progress of the business. Comparative income statements facilitate the horizontal analysis since each accounting variable is analyzed horizontally.
b. Common- Size Statements: Common size statements are such statements in which the items of financial statements are covered into percentage of common base. In common-size income statement, by assuming net sales as 100(i.e %)and other individual items are converted as percentage of this. Similarly, in common –size balance sheet ,total assets are assumed to be 100 (i.e %) and individual assets are expressed as percentage.
Objectives of common size statements
1. Presenting the change in various items in relation to total assets or total liabilities or net sales. 2. Establishing a relationship. 3. Providing a common base for comparison.
Types of common size statements 1. Common-Size Balance Sheet : A common –size balance sheet is a statement in which total of assets or liabilities is assumed to be equal to 100 and all the figures are expressed as percentage of the total. That is why it is known as percentage balance sheet. 14
Common-size balance sheet facilitate the vertical analysis since each item of the Balance Sheet is analyzed vertically.
2. Common-Size Income Statement: Common-size income statement is a statement in which the figures of net sales is assumed to be equal to 100 and all other figures of “profit and loss A/c” are expressed as percentage of net sales. this statement facilitate the vertical analysis since each accounting variable is analyzed vertically. One can draw conclusion, regarding the behavior of expenses over period of time by examining these percentages.
c. Trend Analysis: Trend percentage are very useful is making comparative study of the financial statements for a number of years. These indicate the direction of movement over a long tine and help an analyst of financial statements to form an opinion as to whether favorable or unfavorable tendencies have developed. This helps in future forecasts of various items. For calculating trend percentages any year may be taken as the „base year‟. Each item of bease year is assumed to be equal to 100 and on that basis the percentage of item of each year calculated.
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d. Ratio Analysis: Meaning : Absolute figures expressed in financial statements by themselves are meaningfulness. These figures often do not convey much meaning unless expressed in relation to other figures. Thus, it
can be say that the relationship between two figures, expressed in arithmetical terms is called a
ratio.
“According to R.N. Anthony.”
“A ratio is simply one number expressed in terms of another. It is found by dividing one number into the other.”
TYPES OF RATIOS
1. Proportion or Pure Ratio or Simple ratio. 2. Rate or so many Times. 3. Percentage 4. Fraction.
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OBJECTS AND ADVANTAGES OR USES OF RATIO ANALYSIS
1. Helpful in analysis of financial statements. 2. Simplification of accounting data. 3. Helpful in comparative study. 4. Helpful in locating the weak spots of the business. 5. Helpful in forecasting 6. Estimate about the trend of the business 7. Fixation of ideal standards 8. Effective control 9. Study of financial soundness.
LIMITATION OF RATIO ANALYSIS 1. False accounting data gives false ratios 2. Comparisons not possible of different firms adopt different 3. accounting policies. 4. Ratio analysis becomes less effective due to price level 5. change 6. Ratios may be misleading in the absence of absolute data. 7. Limited use of a single Ratio. 8. Window-Dressing 9. Lack of proper standards. 10. Ratio alone are not adequate for proper conclusions 17
11. Effect of personal ability and bias of the analyst.
CLASSIFICATION OF RATIOS
In view of the financial management or according to the tests satisfied, various ratios have been classifieds as below:
Liquidity Ratios : These are the ratios which measure the short-term solvency or financial position of a firm. These ratios are calculated to comment upon the short-term paying capacity of a concern or the firm‟s ability to meet its current obligations. Long –Term Solvency and Leverage Ratios : Long-term solvency ratios convey a firm‟s ability to meet the interest cost and repayment schedules of its long-term obligation e.g. Debit Equity Ratio and Interest Coverage Ration. Leverage Ratios.
Activity Ratios: Activity ratios are calculated to measure the efficiency with which the resource of a firm have been employed. These ratios are also called turnover ratios because they indicate the speed with which assets are being turned over into sales e.g. debtors turnover ratio.
Profitablity Ratios: These ratios measure the results of business operations or overall performance and effective of the firm e.g. gross profit ratio, operating ratio or capital employed. Generally, two types of profitability ratios are calculated. (a) In relation to Sales, and (b)In relation in Investment
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FUNCTIONAL CLASSIFICATION IN VIEW OF FINANCIAL MANAGEMENT OR CLASSIFICATION ACCORDING TO TESTS Liquidity Ratios Long-term Activity Ratios Profitability Solvency and
Ratios
Leverage Ratios -Current Ratio
Financial Operating
Inventory
-Liquid Ratio
Composite
Ratio.
(Acid) Test or
-Debt. Equity
Debtors
Quick Ratio.
Ratio
Ratio
-Absolute liquid or
-Debt to Total
Fixed
-Cash Ratio.
Capital Ratio
Turnover Ratio
-Debtors
-Interest
Total Asset Turnover Expenses Ratio
Turnover Ratio
Coverage Ratio
Ratio
-Creditors Turnover
-Capital
Ratio
Ratio
-Inventory ratio
Turnover
Turnover In Relation to Sales. Gross Profit Ratio. Turnover Operating Ratio. Operating Profit Assets Ratio. Net Profit Ratio.
In relation to
Gearing Working
Capital investments
Turnover Ratio. Payables
on
Turnover Investments.
Ratio Capital
Return
Return on capital. Employed Return
Turnover Ratio
on
Equity
Capital. Return
on
total
Resources Earning per share. Price Earning Ratio.
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CASH-FLOW STATEMENT A cash – flow statement is a statement showing inflows (receipts) and outflows (payments) of cash during a particular period. In other words, it is a summary of sources and applications of each during a particular span of time.
Objectives of Cash Flow Statement :
1. Useful for Short-Term Financial Planning. 2. Useful in Preparing the Cash Budget. 3. Comparison with the Cash Budget. 4. Study of the Trend of Cash Receipts and Payments. 5. It explains the Deviations of Cash from Earnings. 6. Helpful in Ascertaining Cash Flow from various Separately. 7. Helpful in Making Dividend Decisions.
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COMPANY PROFILE
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INTRODUCTION TO ICICI BANK
Type
Private BSE & NSE:ICICI, NYSE: IBN
Industry
Banking Insurance Capital Markets and allied industries
Founded
1955 (as Industrial Credit and Investment Corporation of India)
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, 2014.)
Website
www.icicibank.com
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History Of ICICI 1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing
medium-term
and
long-term
project
financing
to
Indian
businesses.
Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited. ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from international markets.
1956 : ICICI declared its first dividend of 3.5%.
1958 : Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.
1960 : ICICI building at 163, Backbay Reclamation, inaugurated.
1961 : The first West German loan of DM 5 million from Kredianstalt obtained.
1967 : ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
1969 : The first two regional offices in Calcutta and Madras set up.
1972 : The second entity in India to set up merchant banking services. : Mr. H. T. Parekh appointed the third Chairman of ICICI.
1977 : ICICI sponsored the formation of Housing Development Finance Corporation. Managed its first equity public issue.
1978 : Mr. James Raj appointed the fourth Chairman of ICICI.
1979 : Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.
1982 : 1982 : ICICI became the first ever Indian borrower to raise European Currency Units. : ICICI commences leasing business.
1984 : Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
1985 : Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI.
1986 : ICICI became the first Indian institution to receive ADB Loans. : ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first professional credit rating agency. : ICICI promotes Shipping Credit and Investment Company of India Limited. : The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first public issue by any Indian entity in the Swiss Capital Market. 23
1987 : ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth Development Corporation (CDC), the first loan by CDC for financing projects in India.
1988 : Promoted TDICI - India's first venture capital company.
1993 : ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up. : ICICI Asset Management Company set up.
1994: ICICI established Banking Corporation as a banking subsidiary.formerly Industrial Credit and Investment Corporation of India. Later, ICICI Banking Corporation was renamed as 'ICICI Bank Limited'. ICICI founded a separate legal entity, ICICI Bank, to undertake normal banking operations - taking deposits, credit cards, car loans etc.
1996 : ICICI Ltd became the first company in the Indian financial sector to raise GDR. : SCICI merged with ICICI Ltd. : Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.
1997 : ICICI Ltd was the first intermediary to move away from single prime rate to three-tier prime rates structure and introduced yield-curve based pricing. : The name The Industrial Credit and Investment Corporation of India Ltd changed to ICICI Ltd. : ICICI Ltd announced the takeover of ITC Classic Finance.
1998 : Introduced the new logo symbolizing a common corporate identity for the ICICI Group. : ICICI announced takeover of Anagram Finance.
1999 : ICICI launched retail finance - car loans, house loans and loans for consumer durables. : ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares.
2000 : ICICI Bank became the first commercial bank from India to list its stock on NYSE.
2001: ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s.
In October 2001, 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.
2002 : 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, 24
the ICICI group's financing and banking Operations, both wholesale and retail, have been integrated in a single entity. At the same time, ICICI started its international expansion by opening representative offices in New York and London. In India, ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it acquired Grindlays Bank.
2003 : The first Integrated Currency Management Centre launched in Pune. ; ICICI Bank announced the setting up of its first ever offshore branch in Singapore. ; The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai, launched. ; ICICI Bank‟s representative office inaugurated in Dubai. ; Representative office set up in China. : ICICI Bank‟s UK subsidiary launched. ; India‟s first ever "Visa Mini Credit Card", a 43% smaller credit card in dimensions launched. ; ICICI Bank subsidiary set up in Canada. ; Temasek Holdings acquired 5.2% stake in ICICI Bank. ; ICICI Bank became the market leader in retail credit in India. In the UK it established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai.
2004 : Max Money, a home loan product that offers the dual benefit of higher eligibility and affordability to a customer, introduced. : Mobile banking service in India launched in association with Reliance Infocomm. : India‟s first multi-branded credit card with HPCL and Airtel launched. : Kisan Loan Card and innovative, low-cost ATMs in rural India launched. : ICICI Bank and CNBC TV 18 announced India‟s first ever awards recognizing the achievements of SMEs, a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of Indian economy. : ICICI Bank opened its 500th branch in India. : ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions (MFIs). The MFI would undertake the promotional role of identifying, training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI. : ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday. : ICICI Bank introduced the concept of floating rate for 25
home loans in India. At the same time, ICICI opened a representative office in Bangladesh to tap the extensive trade between that country, India and South Africa.
2010 : 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 mChq – a revolutionary credit card on the mobile phone. ; Private Banking Masters 2010, a nationwide Golf tournament for high networth 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. ; ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with about US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI established a branch in Dubai International Financial Centre and in Hong Kong. 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.
2011 : 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 allow 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.
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2012 : 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 time in St. Petersburg. ; ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international markets through a follow-on public offer. ; ICICI Bank‟s GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia. ; Launched India‟s first ever jewellery card in association with jewelry major Gitanjali Group. ; ICICI Bank became the first bank in India to launch a premium credit card -- The Visa Signature Credit Card. ; Foundation stone laid for a regional hub in Gandhinagar, Gujarat. ; Introduced SME Toolkit, an online resource centre, to help small and medium enterprises start, finance and grow their business. ; ICICI Bank signed a multi-tranche dual currency US$ 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.
2013 : 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 iMobile, 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 (ex-Japan) in 27
2013 till date and the second largest deal in Asia (ex-Japan & Australia) since the beginning of 2012. ; 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 cobranded 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.
2014: ICICI Bank Board appoints Mr K. V. Kamath as non-executive Chairman and Ms Chanda Kochhar as Managing Director & CEO effective May 1, 2014, while the existing nonexecutive Chairman Mr N Vaghul retires after completing his term on April 30, 2014 ; 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$100 million with the Japan Bank for International Cooperation (JBIC) which constitutes the international wing of Japan Finance Corporation. ; ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed a loan agreement with the Export-Import Bank of China (China Exim) for USD 98 million under the Two- step Buyer Credit (Export Credit) arrangement. ICICI Bank is the first Indian Bank to have entered into this arrangement with China Exim ; ICICI Bank with Singapore Airlines launched “ICICI Bank Singapore Airlines Visa Platinum Credit Card”, the Card has exclusive privileges especially designed for the members. ; ICICI Bank announced an association with mChek, India‟s leading mobile payment solutions provider, to facilitate mChek services to all ICICI Bank Debit and Credit Card customers. These are electronic cards issued to the customers with mChek application on their mobile phone. ; Ms Chanda Kochhar took charge as the Managing Director & CEO of ICICI Bank from May 1, 2014.
ICICI BANK TODAY ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank by market capitalisation and second largest overall in terms of assets. Trotal assets of Rs. 3,562.28 billion (US$ 77 billion) at December 31, 2014 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the nine months ended December 31, 2014. The Bank also 28
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 2012). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialised 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, 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 FY2014. The bank's Current and savings account (CASA) ratio increased to 28.7% at March 31, 2014 from 26.1% at March 31, 2013. Increase of Rs. 5,286 crore in CASA deposits in quarter ended March 31,2014. ICICI Bank is one of the Big Four Banks of India with State Bank of India, Axis Bank and HDFC Bank
ICICI Bank Group
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BUSINESS PROFILE
Products & Services Personal Banking
Deposits Loans Cards Investments Insurance Demat Services Wealth Management
NRI Banking
Money Transfer Bank Accounts Investments Property Solutions Insurance Loans
Business Banking
Corporate Net Banking Cash Management Trade Services FXOnline SME Services Online Taxes Custodial Services
Head Office ICICI Bank 9th Floor, South Towers ICICI Towers Bandra Kurla Complex 30
Bandra (E) Mumbai. Phone: 91-022-653 7914 Website: www.icicibank.com
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.
Board of Directors Board Members Mr. K. V. Kamath, Chairman .................................................... Mr. Sridar Iyengar .................................................... Mr. Homi R. Khusrokhan .................................................... Mr. Lakshmi N. Mittal ................................................ Mr. Narendra Murkumbi ................................................. Dr. Anup K. Pujari ................................................. Mr. Anupam Puri .................................................. Mr. M.S. Ramachandran .................................................. Mr. M.K. Sharma .................................................. Mr. V. Sridar Prof. Marti G. Subrahmanyam ......................................................... Mr. V. Prem Watsa ......................................................... Ms. Chanda D. Kochhar, Managing Director & CEO .........................................................
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Mr. Sandeep Bakhshi, Deputy Managing Director ......................................................... Mr. N. S. Kannan, Executive Director & CFO ......................................................... Mr. K. Ramkumar, Executive Director ......................................................... Mr. Sonjoy Chatterjee, Executive Director
Board committee Audit Committee
Board Governance Remuneration & Nomination Committee
Mr. Sridar Iyengar, Chairman Mr. M. K. Sharma, Alternate Chairman Mr. Narendra Murkumbi Mr. V. Sridar
Mr. M. K. Sharma, Chairman Mr. K. V. Kamath Mr. Anupam Puri Prof. Marti G. Subrahmanyam
Corporate Social Responsibility Committee
Customer Service Committee
Mr. M. K. Sharma, Chairman Dr. Anup K. Pujari Ms. Chanda D. Kochhar
Mr. K. V. Kamath, Chairman Mr. Narendra Murkumbi Dr. Anup K. Pujari Mr. M. S. Ramachandran Mr. M.K. Sharma Ms. Chanda D. Kochhar
Credit Committee
Fraud Monitoring Committee
Mr. K. V. Kamath, Chairman Mr. Narendra Murkumbi Mr. M. S. Ramachandran Mr. M .K. Sharma Ms. Chanda D. Kochhar
Mr. M. K. Sharma, Chairman Mr. K. V. Kamath Mr. Narendra Murkumbi Ms. Chanda D. Kochhar Mr. Sandeep Bakhshi
Risk Committee
Share Transfer & Shareholders'/ Investors' Grievance Committee
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Mr. K. V. Kamath, Chairman Mr. Sridar Iyengar Dr. Anup K. Pujari Prof. Marti G. Subrahmanyam Mr. V. Prem Watsa Ms. Chanda D. Kochhar Committee of Executive Directors Ms. Chanda D. Kochhar, Chairperson Mr. Sandeep BakhshiMr. N. S. Kannan Mr. K. Ramkumar Mr. Sonjoy Chatterjee
Mr. M. K. Sharma, Chairman Mr. Narendra Murkumbi Mr. N. S. Kannan
BUSINESS OBJECTIVE Vision To be the leading provider of financial services in India and a major global bank.
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 realization of India‟s potential.
Maintain a healthy financial profile and diversify our earnings across businesses and geographies.
Maintain high standards of governance and ethics.
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Contribute positively to the various countries and markets in which we operate.
Create value for our stakeholders
TECHNOLOGY Used In ICICI Bank ICICI use many type of advance technological software like Pinnacle 7.0 and Pinnacle7.016.Among from this software ICICI bank uses the e-banking, core banking, mobile banking electronic display sy ICICI Bank was using Teradata for its data warehouse. However, due to its proprietary hardware, the cost of procurement, upgrades and administration was soaring. The closed box architecture of Teradata imposed restrictions on scalability. Secondly, querying and loading could not happen simultaneously. Queries could only be run during business hours because the loading of data had to take place during off business hours. This meant that the refresh rate of EDW was delayed, so queries may not reflect the most current data. ICICI Bank was also dependent on Teradata for support and other activities: The bank was completely tied down to that solution. These issues compelled ICICI Bank to look for more efficient and flexible solutions. The solution would have to address not only current issues, but accommodate future growth expectations and business requirements. ICICI Bank evaluated numerous data warehousing solutions in the pursuit of solving its issues, and developed a shortlist of alternatives for its migration proof-of-concept: Sybase, SAS and Netezza. The primary criteria for evaluation was the price-to-performance ratio where Sybase IQ emerged the clear winner. During this rigorous testing, Sybase IQ delivered faster results on independent hardware and operating systems with minimum infrastructure. Commending the improvements achieved, Amit Sethi, Joint General Manager, ICICI bank says, "What impressed us
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wasthat even with overall lower costs, we could achieve significantly better query performanceafter implementing the Sybase enterprise warehouse solution." ICICI Infotech today launched an enterprise resourceplanning (ERP) solution for the small and medium enterprises. The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a 15-user license. An ERP package helps a manufacturer or any other business implementing it to manage all the important parts in the company such as product planning, parts purchasing, maintaining inventory and interacting with suppliers and customers. ICICI Infotech officials told a press conference here today that Orion Advantage offered a set of business practice solutions for industry segments such as engineering, auto ancillary, pharmaceuticals, chemicals and IT distribution. Besides the cost advantage, the ERP package also came pre-configured. ICICI Infotech had mapped the processes specific to each industry segment into the package.
Mr. Manoj Kunkalienkar, Executive Director and President, ICICI Infotech, said that smalland medium enterprises (SMEs) offered a good market and ICICI Infotech hoped to become a leading solution provider to this segment.
Mr. R.K. Kanthi, Deputy General Manager, ICICI Infotech, said there was no ERP packagefor the SMEs that bundled the server, database and operating system right now. That was the advantage ICICI Infotech offered to SMEs as Orion Advantage came bundled and preconfigured. Besides the
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high cost of generic ERP packages, their implementation time as far as SMEs were concerned was also long. Orion Advantage could be installed in 45 days. ICICI Infotech had signed up six customers so far for the package and hoped to garner a 15 per cent market share of the SME segment, whose number in the country was estimated at 2.30 lakh. Mr. K.S. Natarajan, Managing Director, Trident Pneumatics Pvt Ltd of Coimbatore, one of the companies that had installed Orion Advantage, said that the company had tried three other ERP packages, all of which had failed, before settling on Orion Advantage.
Mr Kunkalienkar said that ICICI Infotech planned to move the two development centers in Chennai into a single location and double the staff strength from 300 now in the next two years. The Chennai centers were involved in research and development of Orion ERP solutions and Premia, an insurance package.
We can see that the how technology gives the best results in the below diagram. There are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2013 (25%). These type of technology gives the freedom to retail customers.
Centralized Processing Units
Derived Economies Of Scale
Electronic Straight through Processing
Reduced Transaction Cost
Data Warehousing,CRM
Improve Cost Efficiency,Cross Sell
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Innovative Technology Application
Provide New Or Superior Products
The country‟s middle class accounts for over 320 million people. In correlation with thegrowth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion.
PRODUCTS AND SERVICES PERSONAL BANKING Loan Product
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
Cards
Credit Card
Deposit Product
Savings A/C Current A/C Fixed Deposits Demat A/C Safe Deposit Lockers
Investment & Insurance
Payment Services
Net Safe
Mutual Funds Bonds Knowledge Centre Insurance General And Health Insurance Equity And Derivatives Mudra Gold Bar
Access To Bank
Net Banking 37
Debit Card Prepaid Card
-------------------------------Forex services ------------------------------- Product And Services Trade Services Forex Service Branch Locater RBI Guidelines
Merchant Prepaid Refill Bill Pay Visa Bill Pay InstaPay Direct Pay VisaMoney Transfers E-Monies Electronic Funds Transfer Online Payment Of Direct Tax
One View InstaAlert Mobile Banking ATM Phone Banking Email Statements Branch Network
WHOLESALE BANKING Corporate
Funded Services Non Funded Services Value Added Services Internet Banking
Small and Medium Financial Institutions Enterprises and Trusts
Funded Services Non Funded Services Specialized Services Value Added Services Internet Banking
BANKS
Clearing Sub-Membership RTGS Sub-Membership Fund Transfer ATM Tie- Ups Corporate Salary A/C Tax Collection
Financial Institutions Mutual Funds Stock Brockers Insurance Companies Commodities Business Trusts
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NRI SERVICES Accounts & Deposits
Rupee Saving A/C Rupee Current A/C Rupee Fixed Deposits Foreign Currency Deposits Accounts For Returning Indians
Remittances
North America Uk Europe South East Asia Middle East Africa Others Quick Remit India Link Check Lock Box Telegraphic/ Wire Transfer Fund Transfer Cheques/Dds/Tcs
Investment & Insurances
Mutual Funds Insurance Private Banking Portfolio Investment Scheme
Payment Services
Net Safe Bill Pay InstaPay DirectPay VisaMoney Online Donation
Loans
Home Loans Loans Against Securities Loans Against Deposits Gold Card Credit
Access To Bank
Net Banking One View InstaAlert ATM Phone Banking Email Statements Branch Networks
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PRODUCTS 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.
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“LIFE PLUS”Senior citizens 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.
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.
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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 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.
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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.
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 tranactions 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.
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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.
The process of drawing cheques for salaries is replaced by sending a single ASCII file to the bank and the amount is directl y 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.
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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...
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.
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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.
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
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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.
ICICI Bank Tax-Saver Fixed Deposit
ICICI Bank‟s Tax-Saver Fixed Deposit enables you to save tax and earn high returns. A dual benefit option structured to maximise your advantage. ICICI Bank‟s Tax Saver FD is the perfect solution for your investment needs.
EEFC Account
Indian exports have surged over the last decade owing to an unprecedented boom in sectors like software, biotechnology, gems, jewellery, textiles etc. As a result of this, the volume of inward remittances has also increased significantly. To shield the firms engaged in regular export and import 47
from the exchange rate fluctuations RBI has allowed parking of foreign currency by exporters in an account designated as Exchange Earners Foreign Currency Account (EEFC). EEFC accounts are Current Accounts held in foreign currency with authorized dealers of foreign exchange in the country.
Resident Foreign Currency (Domestic) Account
Do you want to save money while buying foreign currency for travelling abroad? You can buy traveller‟s cheques, foreign currency in cash and foreign currency demand draft for your expenses overseas. If you are a frequent traveller, you may not want to go through the hassles of buying foreign currency every time you travel abroad.
The Reserve Bank of India has now made it easier for you to access foreign currency by permitting a foreign currency account (domestic) for resident Indians. In line with RBI guidelines, ICICI Bank has come up with a scheme that helps you get rid of all your forex worries. You can park your foreign currency in ICICI Bank under RFC (D) account. Non-interest bearing Resident Foreign Currency (D) (RFC (D)) with ICICI Bank can be maintained in four major currencies (USD, EURO, GBP and Japanese Yen) PRIVILEGE BANKING:
Privilege banking service ensures preferential treatment to its customers. Silver privilege A/c
Waiver of multi-city cheque book usage up to Rs. 1,00,000 per month.
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Waiver of DD/PO charges for upto Rs.50,000 per day.
Preferential rates of gold coins,deposits lockesr &foreign exchange.
Quarterly average balance requirement of Rs.25000.
Gold privilege A/c
Priority processing at all ICICI Bank branches and customer care.
Free usage of payable -at-par cheque book.
Free international gold debit card with higher daily withdrawal and spend limit.
Waiver of DD/PO charges for up to Rs.100,000 per day.
Free anywhere banking facility.
Preferential rates for gold coins, deposit lockers and foreign exchange.
Quarterly Average Balance(QAB) requirement of Rs.50000.
Titanium privilege A/c
Branch relationship manager supported with phone banking relationship manager.
Priority processing at ICICI Bank brancghes and customer care.
Free international titanium debit card with higher daily withdrawal and spend limit.
Free anywhere banking facility.
Free usage of multy-city cheque book.
Free physical monthly account statement.
Complete waiver on DD/PO charges.
Preferential rates for gol coins,deposit lockers and foreign exchange.
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Quarterly average balance (QAB)requirement of Rs.75000 and Total Relationship Value(TRV)of Rs. 5,00,000.
Family banking:
Superior product benefits of privilige banking,wealth management and global private client(GPC) available to all the members of your family while the required minimum balance can be maintained in any of the accounts.
Access to superior benefits for the entire family.
Flexibility to maintain balances across account.
Lower minimum balance requirement at individual customer level.
Single family bank – convenience for the entire family and easier funds management.
Outward Remittance:
Send money to your loved ones abroad
ICICI Bank offers you a simple way to send money outside India. Our Outward Remittance facilities make remitting money abroad quick, and reliable. ICICI Bank‟s Outward Remittance is the solution for your all your needs. Be it money for education, gift money or maintenance for loved ones or donation for a cause. Our extensive network gives us reach to most parts of the world.
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Advantage Deposit
Advantage Deposit is a combination of fixed deposit and mutual fund investment, offering you the safety of a fixed deposit and the returns of an equity fund. Advantage Deposit counters equity-market fluctuations through Systematic Investment Plans.
Combination of a Fixed Deposit (with monthly interest payout) and Systematic Investment Plan (SIP) of a Mutual Fund.
Re-investment of monthly interest payout of Fixed Deposit into systematic investment plan of Mutual Fund.
Automatic debits to account through Standing Instruction / ECS debit mandate.
New Pension System of Government of India
ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION SYSTEM launched on May 1, 2014 by the Government of India. The scheme, promoted by the PFRDA (Pension Fund Regulatory and Development Authority, Government of India), is a first of its kind in India and is being launched pan-India by 22 other POP's as well.
The purpose of this pension scheme is to promote security of income to its subscribers in their old age. The scheme will empower a subscriber to plan his own retirement and pension. It not only will help him save for life after retirement but also is a good investment tool as the returns are marketdriven. For optimum returns, the Government has appointed six fund managers for subscribers to choose from.
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LOANS HOME LOAN
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.
PERSONAL LOANS
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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.
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.
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OBJECTIVE OF THE STUDY
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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 analyse the financial statement i.e P & L account and Balance sheet of ICICI BANK. 2) To analyses the financial statements of the corporation to assess it‟s true financial position by the use of ratios. 3) To evaluate the financial soundness, stability and liquidity of ICICI BANK.
2. Secondary objective:1) To find out the shortcomings in ICICI Bank. 2) To see whether ICICI Bank is going well or not in different areas. 3)To study the software used in ICICI Bank.
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RESEARCH METHODOLOGY
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Research methodology The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon. It may be understood as a science of studying how research is done scientifically. So, the research methodology not only talks about the research methods but also considers the logic behind the method used in the context of the research study. Research Methodology is a way to systematically study and solve the research problems. If a researcher wants to claim his study as a good study, he must clearly state the methodology adapted in conducting the research the research so that it way be judged by the reader whether the methodology of work done is sound or not.
The Research Methodology here includes: Objective of study
Meaning of Research. Research Problem. Research Design. Data Collection method. Analysis and interpretation of Data
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Meaning of Research: Research is defined as “a scientific and systematic search for pertinent information on a specific topic”. Research is an art of scientific investigation. Research is a systematized effort to gain now knowledge. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is an academic activity and this term should be used in a technical sense. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions. Making deductions and reaching conclusions to determine whether they if the formulating hypothesis. Research is thus, an original contribution to the existing stock of knowledge making for its advancement. The search for knowledge through objective and systematic method of finding solutions to a problem is research.
Research Problem
The first step while conducting research is careful definition of Research Problem. “To ERR IS THE HUMAN” is a proverb which indicates that no one is perfect in this world. Every researcher has to face many problems which conducting any research that‟s why problem statement is defined to know which type of problems a researcher has to face while conducting any study. It is said that, “Problem well defined is problem half solved.”
Basically, a problem statement refers to some difficulty, which researcher experiences in the context of either a theoretical or practical situation and wants to obtain the solution for the same. The problem statement here is:-
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“TO
MAKE A FINANCIAL STATEMENTS ANALYSIS OF ICICI
BANK”
Research Design A research designs is the arrangement of conditions for collection and analysis data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research Design is the conceptual structure with in which research in conducted. It constitutes the blueprint for the collection measurement and analysis of data. Research Design includes and outline of what the researcher will do form writing the hypothesis and it operational implication to the final analysis of data. A research design is a framework for the study and is used as guide in collection and analyzing the data. It is a strategy specifying which approach will be used for gathering and analyzing the data. It also include the time and cost budget since most studies are done under these two cost budget since most studies are done under theses tow constraints. The design is such studies must be rigid and not flexible and most focus attention on the following:-
What is the study about? Why is the study being made? Where will the study be carried out? What type of data is required? Where can be required data be found? What period of time will the study include? What will be sample design? What techniques of data collection will be used?
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How will the data be analyzed? In what style will the report be prepared?
TYPES OF RESEARCH DESIGN : EXPERIMENTAL RESEARCH DESIGN EXPLORATORY RESEARCH DESIGN DESCRIPTIVE& DIAGNOSTIC RESEARCH
Exploratory Research Design: This research design is preferred when researcher has a vague idea about the problem the researcher has to explore the subject.
Experimental Research Design – The research design is used to provide a strong basis for the existence of casual relationship between two or more variables.
Descriptive Research Design – It seeks to determine the answers to who, what, where, when and how questions. It is based on some previous understanding of the matter.
Diagnostic Research Design It determines the frequency with which something occurs or its association with something else.
RESEARCH DESIGN USED IN THE STUDY: Descriptive research design is used in this study because it will ensure the minimization of bias and maximization of reliability of data collected. Descriptive study is based on some previous 60
understanding of the topic. Research has got a very specific objective and clear cut data requirements The researcher had to use fact and information already available through financial statements of earlier years and analyses these to make critical evaluation of the available material. Hence by making the type of the research conducted to be both Descriptive and Analytical in nature. From the study, the type of data to be collected and the procedure to be used for this purpose were decided.
Data Collection Method
The process of data collection begins after a research problem has been defined and research design ahs been chalked out. There are two types of data –
PRIMARY DATA It is first hand data, which is collected by researcher itself. Primary data is collected by various approaches so as to get a precise, accurate, realistic and relevant data. The main tool in gathering primary data was investigation and observation. It was achieved by a direct approach and observation from the officials of the company.
SECONDARY DATA - it is the data which is already collected by someone else. Researcher has to analyze the data and interprets the results. It has always been important for the completion of any report. It provides reliable, suitable, adequate and specific knowledge.
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TYPE OF DATA USED IN THE STUDY The required data for the study are basically secondary in nature and the data are collected from
The audited reports of the company.
INTERNET – which includes required financial data collected form ICICI Bank‟s official website i.e www.icici.com and some other websites on the internet for the purpose of getting all the required financial data of the bank and to get detailed knowledge about ICICI Bank for the convenience of study.
Brouchers of ICICI Bank.
The valuable cooperation extended by staff members and the branch manager of ICICI bank,dharmshala contributed a lot to fulfill the requirements in the collection of data in order to complete the project.
Methods of data analysis The data collected were edited, classified and tabulated for analysis. The analytical tools used in this study are: ANALYTICAL TOOLS APPLIED: The study employs the following analytical tools: 1. Comparative statement. 2. Trend Percentage. 3. Ratio Analysis. 4. Cash Flow Statement.
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IMPORTANCE OF THE STUDY
By “FINANCIAL STATEMENTS 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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Limitations of study
64
Limitations
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.
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
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FINANCIAL ANALYSIS
66
BALANCE SHEET OF ICICI BANK LTD. As On Mar 2010,Mar 2011,Mar 2012,Mar2013,Mar2014.
CAPITAL AND LIABILITIES: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities And Provisions Total Liabilities
(Rs. In crores)
2010
2011
2012
2013
2014
1086.75
1239.83
1249.34
1462.68
1463.29
736.75
889.83
899.34
1112.68
1113.29
0.02
0.00
0.00
0.00
0.00
350.00
350.00
350.00
350.00
350.00
11813.20 0.00
21316.16 0.00
23413.92 0.00
45357.53 0.00
48419.73 0.00
12899.97 99818.78 33544.50 146263.25 21396.17
22555.99 165083.17 38521.91 226161.17 25227.88
24663.26 230510.19 51256.03 306429.48 38228.64
46820.21 244431.05 65648.43 356899.69 42895.39
49883.02 218347.82 67323.69 335554.53 43746.43
167659.42
251388.95
344658.12
399795.08
379300.96
6344.90
8934.37
18706.88
29377.53
17536.33
6585.07
8105.85
18414.45
8663.60
12430.23
91405.15 50487.35 5525.65 1487.61
146163.11 71547.39 5968.57 1987.85
195865.60 91257.84 6298.56 2375.14
225616.08 111454.34 7036.00 2927.11
218310.85 103058.31 7443.71 3642.09
4038.04 96.30
3980.72 147.94
3923.42 189.66
4108.89 0.00
3801.62 0.00
8702.59
12509.57
16300.26
20574.63
24163.62
ASSETS: Cash And Balances With RBI Balances With Banks,Money At Call Advances Investments Gross Block Accumulated Depreciation Net Fixed Assets Capital Work In Progress Other Assets
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Total Assets Contingent liabilities Bills for collection Book value(Rs.) EPS No. of equity shares
167659.40 251388.95 344658.11 399795.07 97507.79 119895.78 177054.18 371737.36
379300.96 803991.92
9803.67
15025.21
22717.23
29377.55
36678.71
170.35
249.55
270.37
417.64
445.17
27.22 736716094
28.55 889823901
34.59 899266672
37.37 1112687495
33.78 1113250642
PROFIT AND LOSS ACCOUNT OF ICICI BANK LTD. For The Year Ended Mar2010,Mar2011,Mar2012,Mar2013,Mar2014 (Rs. In Crores)
INCOME: Interest Earned Other Income Total Income EXPENDITURE: Interest Expended Operating Expenses Total Expenses Operating Profit Other Provision And Contigencies Provision For Tax Net Profit Extraordinary Items Profit B/F Total Preference Dividend Equity Dividend Corporate Dividend Tax Pershare Data Eps(Rs.) Equity
2010
2011
2012
2013
2014
9409.90 3416.14 12826.04
13784.49 4983.14 18767.63
22994.29 5929.17 28923.46
30788.34 8810.77 39599.11
31092.55 7603.72 38696.27
6570.89 3299.15
9597.45 4479.51
16358.50 6690.56
23484.24 8154.18
22725.93 7045.11
9870.04 2956 428.80
14076.96 4690.67 1594.07
23049.06 5874.40 2226.36
31638.42 7960.69 2904.59
29771.04 8925.23 3808.26
522 2010.20 0.00
556.53 2540.07 0.00
537.82 3110.22 0.00
898.37 4157.73 0.00
1358.84 3758.13 (0.58)
53.09
188.22
293.44
998.27
2436.32
2058.29 0.00
2728.29 0.00
3403.66 0.00
5156.00 0.00
6193.87 0.00
632.96 90.10
759.33 106.50
901.17 153.10
1227.70 149.67
1224.58 151.21
27.22 85.00
28.55 85.00
34.59 100.00
37.37 110.00
33.78 110.00 68
Dividend(%) Book Value(Rs) Appropriations Transfer To Statutory Reserve Transfer To Other Reserve Proposed Dividend/Transfer To Govt Balance C/F To Balance Sheet Total
170.35
249.55
270.37
417.64
445.17
547.00
248.69
1351.12
1342.31
2013.42
600.01
1320.34
0.00
0.01
0.01
723.06
865.83
1054.27
1377.37
1375.79
188.22
293.44
998.27
2436.32
2809.65
2058.29
2728.30
3403.66
5156.01
6193.87
FINANCIAL STATEMENT ANALYSIS Comparative Balance Sheet Of ICICI Bank From 2010-2011 To 2013-2014 PARTICULA RS
2010-2011
2011-2012
2012-2013
(Rs. in crores) 20132014
Absolute change
% of change
Absolut e change
% of change
Absolute change
% of change
Absolute change
%
153.08 9502.96
14 80
9.51 2097.76
0.8 10
213.34 21943.61
17 94
0.61 3062.2
.04 7
65264.39 4977.41 3831.71
65 15 18
65427.02 12734.12 13000.76
40 33 51.5
13920.86 14392.4 4666.75
6 28 12
(26083.23) 1675.26 851.04
11 2.5 2
83729.55
50
93269.17
37
55136.96
16
(20494.12)
5.1
CAPITAL AND LIABILITI ES: Capital
Reserves and surplus Deposits Borrowings Other Liabilities and Provisions
TOTAL CAPITAL AND LIABILITIES
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ASSETS: Investments
21060.04
42
19710.45
27.5
20196.5
22
(8396.03)
Advances
54757.96
60
49702.49
34
29750.48
15
(7305.23
Fixed assets
(57.32)
(1.4)
(57.3)
(1.4)
185.47
5
(307.27)
Capital Work In Progress Current assets TOTAL ASSETS:
51.64
54
41.72
28.2
(189.66)
-100
7917.23 83729.55
37 50
23871.8 93269.16
81 37
5194.17 55136.96
10 16
0.00 (4485.58) (20494.11)
(7. 5) (3. 25) (7. 5) 0.0 0 (8) (5. 1)
Interpretation
The capital of bank increased by 14% in 2010-11,0.8% in 2011-12,17% in 2012-13,and .04 % in 2013-14.This shows that there is fluctuation in the rate of increase in the capital. In 2010-11 and 2012-13 the rate of increase in capital is more than that of 2011-12 and 2013-14. There is a huge fluctuation in the rate of increase in reserves and surplus also. This shows that bank is effectively utilizing its reserves and surplus.
In 2010-11 deposits increase by 65%,in 2011-12 it increased by 40%,and an increase of 6% in 2012-13.in 2013-14 deposits fall by 11%.this shows that the bank has repaid its deposits in this year.
The borrowings are also showing a fluctuating rate of increase in 2013-14 the borrowings have increased at a very low rate this shows that bank has
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repaid a large amount of borrowings in this year and thereby reducing the dependence on outside debt.
The investments are also increasing but with lower rates compared to the preceding years.
Similarly advances rose by 60% in 2010-11,an increase of 34% in 201112,15% increase in 2012-13 and finally decreased by 3.25% in 2013-14.
There has been a consistent decline in the fixed assets over years in 201011 and 2011-12 it decreased by 1.4 % ,increased by 5% in 2012-13 and again decreasing by 7.5% in 2013-14.this is mainly due to increase in the rate of depreciation in the subsequent years.
A huge fluctuation is revealed from current assets. It increased by 37% in 2010-11, rate of increase rose to 80% in 2011-12 and then it increased at a much lower rate i.e. at 10%.this shows that the bank is effectively utilizing its working capital. there is a fall in current assets in 2013-14 by 8 %.this is mainly due to the repayment of deposits in the years 2013-14.
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Comparative Income Statement Of ICICI Bank From 2010-2011 To 2013-2014 2010-2011
PARTICULARS
2011-2012
2012-2013
(Rs. in crores) 2013-2014
Absolute change
% of change
Absolute change
% of change
Absolute change
% of change
Absolute change
5941
46.3
10156
54.1
10676
37
(902.84)
Interest expended Operating expenses Total expenses Operating profit
3026.56 1180.36
46 36
6761.05 2211.05
70.4 49.3
7125.74 1463.62
43.5 22
(758.31) (1109.07
4206.92 1734.67
43 59
8972.1 1183.73
64 25.2
8589.36 2086.29
37.2 35.5
(1867.38) 964.54
Provision and contigencies
1199.8
126.1
613.58
28.5
1038.78
37.5
1364.14
534.87
27
570.15
22.4
1047.51
34
(399.6)
0.00
0.00
0.00
0.00
0.00
0.00
(0.58)
135.13
254.5
105.22
56
704.83
21
1438.05
670
32.55
675.37
25
1752.34
51.4
1037.87
INCOME:
Operating income EXPENDITURE:
Net profit for the year Extraordinary items Profit brought forward TOTAL PROFIT/(LOSS):
Interpretation:-
The net profit shows a fluctuating trend i.e it increased by 27% in 2010-11,22.4% increase in 2011-12,and increased by 34% in 2012-13 and finally if falls by 10% in2013-14.this may be due to decline in operating income and increased tax liability in the year 2013-14. The interest expenses from the period 2010 to 2013 showed an increasing trend but decreased in 2013-14 due to repayment of borrowings.
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TREND ANALYSIS Trend Percentage Of ICICI Bank From 2004-2010 To 2013-2014 (base year 2004 -05)
Percentage(%) figures
Particulars
2010
2011
2012
2013
2014
Deposits Advances Net profit
100 100 100
165 160 127
231 214 155
245 247 207
219 239 187
Trend graph of ICICI Bank 300 250 200
DEPOSITS ADVANCES NET PROFIT
(%) 150 100 50 0 2010
2011
2012
2013
2014
Years Interpretation: There is a continuous increase in the deposits till the year ending 2013 followed by a downfall in the year ending 2014 due to repayment deposits in this year. Similarly advances also shows as increasing trend till the year ending 2013 followed by a slight downfall in the year ending 2014. There has been a substantial increase in net profit till the year ending 2013.In four years it has been more than double.
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RATIO ANALYSIS CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY
Current Ratio of ICICI Bank for the period of 2010-2014 1.6 1.39
1.4 1.2
1.36 1.23
1.17 1.01
1
Ratio 0.8
Current Ratio
0.6 0.4 0.2 0 2010
2011
2012
2013
2014
Years
Year 2010 2011 2012 2013 2014
Current Assets
Current Liabilities
(Rs. In crores)
(Rs. In crores)
21632.56 29549.79 53421.59 58615.76 54130.18
21396.16 25227.88 38228.64 42895.38 43746.43
Current Ratio 1.01 1.17 1.39 1.36 1.23
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.
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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
Liquid Ratio of ICICI Bank for the period of 2010-2014 1.2 0.97
1
0.88 0.8 Ratio
0.68
0.67 0.6
0.6
Liquid Ratio
0.4 0.2 0 2010
2011
2012
2013
2014
Years
2010 2011 2012 2013 2014
12929.97 17040.22 37121.33 38041.13 29966.56
21396.16 25227.88 38228.64 42895.38 43746.43
0.60 0.67 0.97 0.88 0.68
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 & 2014 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. 75
EARNING PER SHARE: Earning Per Equity Share = Net Profit after Tax –Prefrence Dividend No. of Equity shares
Earnings Per Share Ratio of ICICI Bank for the period of 2010-2014 40
37.37 34.59
35 30
27.22
33.78
28.55
25 Ratio 20
Earnings Per Share
15 10 5 0 2010
2011
2012
2013
2014
Years
Year 2010 2011 2012 2013 2014
Net Income Available For Shareholders
No. Of Equity Shares
(Rs. In crores)
(Rs. In crores)
2010.2 2540.07 3110.22 4157.73 3758.13
73.6716 88.9823 89.9266 111.2687 111.325
EPS 27.22 28.55 34.59 37.37 33.78
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 shows a persistent increase till the year 2013 after that in the year 2014 Earning Per share is followed by a downfall due to decline in profits.
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DIVIDEND PER SHARE : Dividend per Share = Dividend Paid To Equity Shareholders No. Of Equity Shares
Dividend Per Share Ratio of ICICI Bank for the period of 2010-2014 12
11.03
11
10.02 10
8.59
8.53
8 Ratio 6
Dividend Per Share Ratio
4 2 0 2010
2011
2012
2013
2014
Years
Year 2010 2011 2012 2013 2014
Dividend Paid
No. Of Equity Shares
(Rs. In crores)
(Rs. In crores)
632.96 759.33 901.17 1227.7 1224.58
73.6716 88.9823 89.9266 111.2687 111.325
DPS 8.59 8.53 10.02 11.03 11
Interpretation: Here the Dividend Per Share is increasing year after year except a little decline in 2014.otherwise the dividend per share ratio of the bank is quite satisfactory which shows the bank has a good dividend paying capacity.
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NET PROFIT RATIO: Net Profit Ratio = Net Profit X 100 Net Sales Net Profit Ratio of ICICI Bank for the period of 2010-2014 25 21.3 20
18.42
15 Ratio
13.52
13.5 12.08
Net Profit Ratio
10 5 0 2010
Year 2010 2011 2012 2013 2014
2011
2012 Years
Net Profit
Sales
(Rs. In crores)
(Rs. In crores)
2010.2 2540.07 3110.22 4157.73 3758.13
9409.9 13784.49 22994.29 30788.34 31092.55
2013
2014
Net Profit Ratio (in %) 21.3 18.42 13.52 13.5 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.
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OPERATING PROFIT RATIO: Operating Profit Ratio =
Operating Profit X100 Net Sales
Operating Profit Ratio of ICICI Bank for the period of 2010-2014 40 35
34.02 31.41 28.7
30 25.54
25.85
Ratio25 20
Operating Profit Ratio
15 10 5 0 2010
2011
2012
2013
2014
Years
Year 2010 2011 2012 2013 2014
Operating Profit
Sales
(Rs. In crores)
(Rs. In crores)
Operating Profit Ratio (in %)
2956 4690.67 5874.4 7960.69 8925.23
9409.9 13784.49 22994.29 30788.34 31092.55
31.41 34.02 25.54 25.85 28.7
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 2012 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.
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RETURN ON NET WORTH: Return On Net Worth = Net Profit After Interest And Tax x 100 Shareholder’s Funds Return On Net Worth Ratio of ICICI Bank for the period of 2010-2014 18 16
15.54
14
12.61 11.26
12
8.88
10 Ratio8
7.53
Return on Net Worth
6 4 2 0 2010
2011
2012
2013
2014
Years
Year 2010 2011 2012 2013 2014
Net Profit After Interest And Tax
Shareholder's Fund
(Rs. In crores)
(Rs. In crores)
2010.2 2540.07 3110.22 4157.73 3758.13
12899.97 22555.99 24663.26 46820.21 49883.02
Return On Net Worth (in %) 15.54 11.26 12.61 8.88 7.53
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 net worth ratio has declined considerably and has reduced to more than half in the year 2014 than it was in 2010. 80
RETURN ON CAPITAL EMPLOYED: Return On Capital Employed of ICICI Bank for the period of 2010-2014 9 7.99
8.29
8 7
6.52
6.22 5.61
6 Ratio 5
Return On Capital Employed 4 3 2 1 0 2010
2011
2012
2013
2014
Years
Year 2010 2011 2012 2013 2014
Net Profit Before Interest And Tax
Capital Employed
(Rs. In crores)
(Rs. In crores)
9098.09 12694.05 20006.54 28540.34 27842.9
146263.25 226161.17 306429.48 356899.69 335554.53
Return On Capital Employed (in %) 6.22 5.61 6.52 7.99 8.29
Interpretation: The above table exhibit the return on capital employed ratio of the bank for last five years. This ratio measures the earning of the net assets of the business. The ratio was 6.22% in year 2010. After that it raised to the tune of 5.61%,6.52%,7.99% and 8.29% in year 2011, 2012, 2013 and year 2014 respectively. It lead to the conclusion bank rising but very little proportion of return on capital employed. 81
DEBT- EQUITY RATIO: Debt Equity ratio of ICICI Bank for the period of 2010-2014 14 12
12.97 11.99 10.14
10 7.53
Ratio 8
6.6
6
Debt Equity Ratio
4 2 0 2010
2011
2012
2013
2014
Years
Year 2010 2011 2012 2013 2014
Debt
Equity
(Rs. In crores)
(Rs. In crores)
154759.45 228832.96 319994.86 352974.87 329417.94
12899.97 22555.99 24663.26 46820.21 49883.02
Debt Equity Ratio 11.99 10.14 12.97 7.53 6.6
Interpretation: The ratio shows the extent to which funds have been provided by long-term creditors as compared to the funds provided by the owners. Here the Debt-Equity ratio for the above period is always high. this shows that the bank is more relying on outside funds as compared to internal sources of capital, in its capital structure. From the long-term lenders point of view this ratio is not satisfactory.
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PROPRIETORY RATIO: Proprietory Ratio = Shareholder’s Fund Total Assets Proprietory Ratio of ICICI Bank for the period of 2010-2014 0.14
0.13 0.12
0.12 0.1 Ratio 0.08
0.08 0.07
0.07 Proprietory Ratio
0.06 0.04 0.02 0 2010
2011
2012
2013
2014
Years
Years 2010 2011 2012 2013 2014
Shareholder's Funds
Total Assets
(Rs. In crores)
(Rs. In crores)
12899.97 22555.99 24663.26 46820.21 49883.02
167659.4 251388.95 344658.11 399795.07 379300.96
Proprietory Ratio 0.07 0.08 0.07 0.12 0.13
Interpretation: Above table exhibits the proprietary ratio of the bank for last five years . It was 7% in 2010,After that was 8% in year 2011. Similarly it was once again reduced to 7 % in the year 2012. After 2012 it registered increase and was 12% and 13% in the year 2013 and 2014 respectively. Hence it leads to the conclusion owners have less than 13% stake in the total assets of the bank. It is not a good sign as far the long term solvency is concerned.
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FIXED ASSETS TURNOVER RATIO: Fixed Assets Turnover Ratio = Cost of goods sold or Sales Net Fixed Assets
Fixed assets Turnover Ratio of ICICI Bank for the period of 2010-2014 9 8 7 6 Ratio 5 4 3 2 1 0
8.17 7.49 5.86 Fixed assets Turnover Ratio
3.46 2.33
2010
2011
2012
2013
2014
Years
Year 2010 2011 2012 2013 2014
Sales
Net Fixed Assets
(Rs. In crores)
(Rs. In crores)
9409.9 13784.49 22994.29 30788.34 31092.55
4038.04 3980.72 3923.42 4108.89 3801.62
Fixed Assets Turnover Ratio 2.33 3.46 5.86 7.49 8.17
Interpretation: Here the fixed assets employed in the business shows a decreasing trend except in the year 2013 where fixed assets have again increased. This may be due to increase in rate of depreciation in subsequent years. Nevertheless the fixed assets turnover ratio has been consistently increasing. It indicates that fixed assets have been effectively used in the business without much additional investment in the period of study and also the capital is not blocked in fixed assets.
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CREDIT-DEPOSIT RATIO: Credit
Deposit
Ratio
Credits
100
Deposits
Credit Deposit ratio of ICICI bank for the period of 2010-2014 1.05 0.99
1 0.95 Ratio 0.9
0.92
0.91 0.88
Credit Deposit ratio 0.84
0.85 0.8 0.75 2010
2011
2012
2013
2014
Years Year 2010 2011 2012 2013 2014
Advances
Deposits
(Rs. In crores)
(Rs. In crores)
91405.15 146163.11 195865.6 225616.08 218310.85
99818.78 165083.17 230510.19 244431.05 218347.82
Credit Deposit Ratio (in%) 91 88 84 92 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. 85
CASH FLOW STATEMENT OF ICICI BANK
Profit before tax Net cash flow-operating activity Net cash used in investing activity Net cash used in fin. Activity Net inc/dec in cash and equivalent Cash and equivalent begin of year Cash and equivalent end of year
2010
2011
2012
2013
2014
2,527.20
3,096.61
3,648.04
5,056.10
5,116.97
9,131.72
4,652.93
23,061.95
-11,631.15 -14,188.149
-3,445.24
-7,893.98
-18,362.67
-17,561.11 3,857.88
-1,227.13
7,350.90
15,414.58
29,964.82
1,625.36
4,459.34
4,110.25
20,081.10
683.55
-8,074.57
8,470.63
12,929.97
17,040.22
37,357.58
38,041.13
12,929.97
17,040.22
37,121.32
38,041.13
29,966.56
86
FINDINGS
87
Findings Profit before tax for the year ended March 31, 2014 (FY2014) was Rs. 5,117 crore (US$ 1,009 million), compared to Rs. 5,056 crore (US$ 997 million) for the year ended March 31, 2013 (FY2013). Profit after tax for FY2014 was Rs. 3,758 crore (US$ 741 million) compared to Rs. 4,158 crore (US$ 820 million) for FY2013 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 FY2013 to Rs. 8,367 crore (US$ 1,650 million) for FY2014. While the advances declined marginally year-on-year, the net interest income increased due to improvement in net interest margin from 2.2% in FY2013 to 2.4% in FY2014. Operating expenses (including direct marketing agency expenses) decreased 14% to Rs. 6,835 crore (US$ 1,348 million) in FY2014 from Rs. 7,972 crore (US$ 1,572 million) in FY2013. The cost/average asset ratio for FY2014 was 1.8% compared to 2.2% for FY2013. 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 88
deposit franchise and create an integrated distribution network for both asset and liability products.
In line with the above strategy, the total deposits of the Bank were Rs. 218,348 crore (US$ 43.0 billion) at March 31, 2014, compared to Rs. 244,431 crore (US$ 48.2 billion) at March 31, 2013. The reduction in term deposits by Rs. 24,970 crore (US$ 4.9 billion) was primarily due to the Bank‟s conscious strategy of paying off wholesale deposits. During Q4-2014, total deposits increased by Rs. 9,283 crore (US$ 1.8 billion), of which Rs. 5,286 crore (US$ 1.0 billion), or about 57%, was in the form of CASA deposits. The CASA ratio improved to 28.7% of total deposits at March 31, 2014 from 26.1% at March 31, 2013. The branch network of the Bank has increased from 755 branches at March 31, 2012 to 1,438 branches at April 24, 2014. The Bank is also in the process of opening 580 new branches which would expand the branch network to about 2,000 branches, giving the Bank a wide distribution reach in the country.
In line with the strategy of prioritizing capital conservation and risk containment, the loan book of the Bank decreased marginally to Rs. 218,311 crore (US$ 43.0 billion) at March 31, 2014 from Rs. 225,616 crore (US$ 44.5 billion) at March 31, 2013.
Liquidity position
The liquid ratio of the bank in the year 2010,2011 and 2014 is 0.60,0.67and 0.68 respectively and the year 2012 and 2013 liquid ratio is 0.97 and 0.88 respectively which is close to 1.Though it is
89
not equal to the ideal liquid ratio of 1:1 but still its under control. So in nut shell, it can be concluded that the liquidity position of the bank is quite satisfactory. Capital adequacy and return on capital employed The Bank‟s capital adequacy at March 31, 2014 as per Reserve Bank of India‟s revised guidelines on Basel II norms was 15.5% and Tier-1 capital adequacy was 11.8%, well above RBI‟s requirement of total capital adequacy of 9.0% and Tier-1 capital adequacy of 6.0%. The above capital adequacy takes into account the impact of dividend recommended by the Board.
Also the capital is being effectively utilized in the bank as it shows better return on capital employed over years. Asset quality At March 31, 2014, the Bank‟s net non-performing asset ratio was 1.96%. During the year the Bank restructured loans aggregating to Rs. 1,115 crore (US$ 220 million). Dividend on equity shares
Since the dividend per share has shown a promising increase for the period under study. It shows that the bank is following a sound dividend policy and is capable of distributing higher dividends. in this way the investors will feel investing in capital of the bank a much beneficial option and will be reluctant to withdraw capital for a long time.
90
Earnings per share
The earnings per share for the period under study also show a promising increase. it suggests that bank has better profitability position and in future it can be a better or attractive channel of investment for shareholders. Higher trends of credit deposit ratio – A positive sign
High trends of credit deposit ratio reveals that bank has performed satisfactorily as regard to granting loans and advances to generate income. It suggests that credit performance is good and the bank is doing its business good by fulfilling its major objective as regards to granting loans and accepting deposits.
91
SWOT ANALYSIS OF ICICI HOME FINANACE
92
SWOT ANALYSIS OF ICICI HOME FINANACE STRENGTH 1) Save substantial interest. 2) Prepay whenever the customer. 3) Reduce their loan outstanding. 4) Access the surplus finds anytime. 5) Use surplus funds to invest when the right opportunities arises.
WEAKNESS
Product is very good but it is mainly suitable for higher income group & is not suitable for the Middle income group
OPPORTUNITIES
There is ample scope for financing flats & apartments for the salaried class in the higher income Group.
THREATS
1) Nationalized banks like SBI, Union Bank, PNB. 2) Private Banks likes HDFC & standard chartered & Citi Bank with its home credit scheme.
93
SUGGESTIONS
94
Suggestions/Recommendation 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.
95
Bank should try to finance more and more projects. Financing will help it to earn higher amount of profits.
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 procedure of 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.
96
CONCLUSION
.
97
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.
98
Annexure
99
BALANCE SHEET OF ICICI BANK LTD. As On Mar 2010,Mar 2011,Mar 2012,Mar2013,Mar2014.
CAPITAL AND LIABILITIES: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities And Provisions Total Liabilities
(Rs. In crores)
2010
2011
2012
2013
2014
1086.75
1239.83
1249.34
1462.68
1463.29
736.75
889.83
899.34
1112.68
1113.29
0.02
0.00
0.00
0.00
0.00
350.00
350.00
350.00
350.00
350.00
11813.20 0.00
21316.16 0.00
23413.92 0.00
45357.53 0.00
48419.73 0.00
12899.97 99818.78 33544.50 146263.25 21396.17
22555.99 165083.17 38521.91 226161.17 25227.88
24663.26 230510.19 51256.03 306429.48 38228.64
46820.21 244431.05 65648.43 356899.69 42895.39
49883.02 218347.82 67323.69 335554.53 43746.43
167659.42
251388.95
344658.12
399795.08
379300.96
6344.90
8934.37
18706.88
29377.53
17536.33
6585.07
8105.85
18414.45
8663.60
12430.23
91405.15 50487.35 5525.65 1487.61
146163.11 71547.39 5968.57 1987.85
195865.60 91257.84 6298.56 2375.14
225616.08 111454.34 7036.00 2927.11
218310.85 103058.31 7443.71 3642.09
4038.04 96.30
3980.72 147.94
3923.42 189.66
4108.89 0.00
3801.62 0.00
8702.59 167659.40
12509.57 251388.95
16300.26 344658.11
20574.63 399795.07
24163.62 379300.96
ASSETS: Cash And Balances With RBI Balances With Banks,Money At Call Advances Investments Gross Block Accumulated Depreciation Net Fixed Assets Capital Work In Progress Other Assets Total Assets
100
Contingent liabilities Bills for collection Book value(Rs.) EPS No. of equity shares
97507.79
119895.78
177054.18
371737.36
803991.92
9803.67
15025.21
22717.23
29377.55
36678.71
170.35
249.55
270.37
417.64
445.17
27.22 736716094
28.55 889823901
34.59 899266672
37.37 1112687495
33.78 1113250642
PROFIT AND LOSS ACCOUNT OF ICICI BANK LTD. For The Year Ended Mar2010,Mar2011,Mar2012,Mar2013,Mar2014 (Rs. In Crores)
INCOME: Interest Earned Other Income Total Income EXPENDITURE: Interest Expended Operating Expenses Total Expenses Operating Profit Other Provision And Contigencies Provision For Tax Net Profit Extraordinary Items Profit B/F Total Preference Dividend Equity Dividend Corporate Dividend Tax Pershare Data Eps(Rs.) Equity Dividend(%)
2010
2011
2012
2013
2014
9409.90 3416.14 12826.04
13784.49 4983.14 18767.63
22994.29 5929.17 28923.46
30788.34 8810.77 39599.11
31092.55 7603.72 38696.27
6570.89 3299.15
9597.45 4479.51
16358.50 6690.56
23484.24 8154.18
22725.93 7045.11
9870.04 2956 428.80
14076.96 4690.67 1594.07
23049.06 5874.40 2226.36
31638.42 7960.69 2904.59
29771.04 8925.23 3808.26
522 2010.20 0.00
556.53 2540.07 0.00
537.82 3110.22 0.00
898.37 4157.73 0.00
1358.84 3758.13 (0.58)
53.09
188.22
293.44
998.27
2436.32
2058.29 0.00
2728.29 0.00
3403.66 0.00
5156.00 0.00
6193.87 0.00
632.96 90.10
759.33 106.50
901.17 153.10
1227.70 149.67
1224.58 151.21
27.22 85.00
28.55 85.00
34.59 100.00
37.37 110.00
33.78 110.00
101
Book Value(Rs) Appropriations Transfer To Statutory Reserve Transfer To Other Reserve Proposed Dividend/Transfer To Govt Balance C/F To Balance Sheet Total
170.35
249.55
270.37
417.64
445.17
547.00
248.69
1351.12
1342.31
2013.42
600.01
1320.34
0.00
0.01
0.01
723.06
865.83
1054.27
1377.37
1375.79
188.22
293.44
998.27
2436.32
2809.65
2058.29
2728.30
3403.66
5156.01
6193.87
102
FINANCIAL STATEMENT ANALYSIS Comparative Balance Sheet Of ICICI Bank From 2010-2011 To 2013-2014 PARTICULA RS
2010-2011
2011-2012
2012-2013
(Rs. in crores) 20132014
Absolute change
% of change
Absolut e change
% of change
Absolute change
% of change
Absolute change
%
153.08 9502.96
14 80
9.51 2097.76
0.8 10
213.34 21943.61
17 94
0.61 3062.2
.04 7
65264.39 4977.41 3831.71
65 15 18
65427.02 12734.12 13000.76
40 33 51.5
13920.86 14392.4 4666.75
6 28 12
(26083.23) 1675.26 851.04
11 2.5 2
83729.55
50
93269.17
37
55136.96
16
(20494.12)
5.1
Investments
21060.04
42
19710.45
27.5
20196.5
22
(8396.03)
Advances
54757.96
60
49702.49
34
29750.48
15
(7305.23
Fixed assets
(57.32)
(1.4)
(57.3)
(1.4)
185.47
5
(307.27)
Capital Work In Progress Current assets TOTAL ASSETS:
51.64
54
41.72
28.2
(189.66)
-100
7917.23 83729.55
37 50
23871.8 93269.16
81 37
5194.17 55136.96
10 16
(7. 5) (3. 25) (7. 5) 0.0 0 (8) (5. 1)
CAPITAL AND LIABILITI ES: Capital
Reserves and surplus Deposits Borrowings Other Liabilities and Provisions
TOTAL CAPITAL AND LIABILITIES
ASSETS:
0.00 (4485.58) (20494.11)
103
CASH FLOW STATEMENT OF ICICI BANK
Profit before tax Net cash flow-operating activity Net cash used in investing activity Net cash used in fin. Activity Net inc/dec in cash and equivalent Cash and equivalent begin of year Cash and equivalent end of year
2010
2011
2012
2013
2014
2,527.20
3,096.61
3,648.04
5,056.10
5,116.97
9,131.72
4,652.93
23,061.95
-11,631.15 -14,188.149
-3,445.24
-7,893.98
-18,362.67
-17,561.11 3,857.88
-1,227.13
7,350.90
15,414.58
29,964.82
1,625.36
4,459.34
4,110.25
20,081.10
683.55
-8,074.57
8,470.63
12,929.97
17,040.22
37,357.58
38,041.13
12,929.97
17,040.22
37,121.32
38,041.13
29,966.56
104
BIBLIOGRAPHY
105
BIBLIOGRAPHY Books Reffered: Accountancy. R.K. Mittal,A.K.Jain. Financial Management- Theory and Practice. Shashi.K.Gupta , R.K. Sharma. Essentials of Corporate Finance 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.Scribd.Com Www.Managementparadise.Com
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