lOMoARcPSD|233 514 48

A SUMMER TRAINING PROJECT REPORT

ON

FINANCIAL ANALYSIS OF ICICI BANK

Submitted in Partial fulfillment of the Requirements for the Degreeof

MASTER IN BUSINESS ADMINISTRATION

Dr. A.P.J. Abdul Kalam Technical University, Lucknow

2022 – 2024

Submitted to:- Submitted by:-

Mr. SHWETA BATRA Aisha

(Director) MBA 3rd Sem

Roll:- 2201290700008

Fort Institute Of Technology

Mawana Road Meerut

1
 lOMoARcPSD|233 514 48

DECLARATION

I Aisha pursuing Master of Business Administration (MBA) 2nd

year session 2022-24 I hereby declare that this Summer training
project report titled “FinancialAnalysis of ICICI Bank” is the
outcome of my own effort under
the guidance of Mr. Sunny Gupta Sir, designation.
The entire project is my original creation. In case of any
discrepancy, I will be solely responsible for it and institute has the
right to cancel my project.

Date: ………………… Aisha

Place:

2
 lOMoARcPSD|233 514 48

Acknowledgment

I would take the opportunity to express thanks and gratitude to Mr. Sunny Gupta Sir
(Faculty) for his vital support and guidance to the project. Thank you for giving me the
opportunity to enhance my skill and knowledge through this project.
I would to thank my friends. Their help in the report and in the submission of this work
was instrumental in helping me achieve deadlines which would otherwise have lapsed.
Their encouragement and assistance cannot be underestimated.

Aisha

3
lOMoARcPSD|233 514 48

4
 lOMoARcPSD|233 514 48

PREFACE

In any organization, the two important financial statements are the Balance Sheet
and Profit & Loss Account of the business. Balance Sheet is a statement of financial
position of an enterprise at a particular point of time. Profit & Loss account shows
the net profit or net loss of a company for a specified period of time. When these
statements of the last few year of any organization are studied and analyzed,
significant conclusions may be arrived regarding the changes in the financial
position, the important policies followed and trends in profit and loss etc. Analysis
and interpretation of financial statement has now become an important technique of
credit appraisal. The investors, financial experts, management executives and the
bankers all analyze these statements. Though the basic technique of appraisal
remains the same in all the cases but the approach and the emphasis in the analysis
vary. A banker interprets the financial statement so as to evaluate the financial
soundness and stability, the liquidity position and the profitability or the earning
capacity of borrowing concern. Analysis of financial statements is necessary
because it helps in depicting the financial position on the basis of past and current
records. Analysis of financial statements helps in making the future decisions and
strategies. Therefore it is very necessary for every organization whether it is a
financial or manufacturing, to make financial statement and to analyze it.

Aisha

5
 lOMoARcPSD|233 514 48

Table of content
Chapter PARTICULARS Page no.
no.
Acknowledgement 3
Preface 4
1. Introduction Of Banking 6-18
a. Introduction of banking…………………. 7
b. History of banking in India……………… 8
c. Banks in India…………………………… 11
d. Fact files of banks in India……………… 17
e. Indian banking industry…………………. 18
2. Company’s Profile 19-55
a. Introduction to ICICI Bank………… 21
b. ICICI Bank today…………………… 27
c. Business profile……………………... 28
d. Board of directors…………………… 29
30
e. Board committee…………………….
31
f. Business objective…………………… 32
g. Technology used in ICICI Bank…….. 34
h. Products and services………………... 54
i. Awards and recognition………………
3. Research Methodology 56-62
a. Objective of study…………………… 58
b. Importance of study…………………. 58
c. Meaning of research………………… 59
d. Research problem…………………… 59
60
e. Research design……………………...
61
f. Data collection method……………… 62
g. Analysis and interpretation of data…..
h. Limitation of study………………….. 62
4. Financial Analysis 63-92
a. Introduction of the topic………………. 64
b. Method/Tools of financial analysis……. 67
c. Balance sheet of ICICI Bank….. 73
d. Profit and Loss Account of ICICI
Bank…………………………….. 75
e. Financial statement analysis…………… 76
1) Comparative financial
statement………………………. 76
2) Trend
analysis……………………. 79
3) Ratio 80
analysis……………………..

6
 lOMoARcPSD|233 514 48

Chapter 1
INTRODUCTION OF BANKING

7
 lOMoARcPSD|233 514 48

INTRODUCTION OF BANKING

Definition Of Bank:

Banking Means "Accepting Deposits for the purpose of lending or Investment of

deposits of money from the public, repayable on demand or otherwise and withdraw
by cheque, draft or otherwise."
-Banking Companies (Regulation) Act,1949

ORIGIN OF THE WORD “BANK”:-

The origin of the word bank is shrouded in mystery. According to one view point
the Italian business house carrying on crude from of banking were called banchi
bancheri" According to another viewpoint banking is derived from German word
"Branck" which mean heap or mound. In England, the issue of paper money by the
government was referred to as a raising a bank.

ORIGIN OF BANKING :

Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of
banking was developed as it provides the safer place to store the money. This safe
place ultimately evolved in to financial institutions that accepts deposits and make
loans i.e., modern commercial banks.

Banking system in India

Without a sound and effective banking system in India it cannot have a healthy
economy.The banking system of India should not only be hassle free but it should
be able to meet new challenges posed by the technology and any other external and
internal factors.

8
 lOMoARcPSD|233 514 48

For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country. This is one of the
main reasons of India's growth process.

 HISTORY OF BANKING IN INDIA

Banking in India has its origin as early or Vedic period. It is believed that the
transitions from many lending to banking must have occurred even before Manu,
the great Hindu furriest, who has devoted a section of his work to deposit and
advances and laid down rules relating to the rate of interest. During the mogul
period, the indigenous banker played a very important role in lending money and
financing foreign trade and commerce.

During the days of the East India Company it was the turn of agency house to
carry on the banking business. The General Bank of India was the first joint stock
bank to be established in the year 1786. The other which followed was the Bank of
Hindustan and Bengal Bank. The Bank of Hindustan is reported to have continued
till 1906. While other two failed in the meantime. In the first half of the 19th
century the East India Company established there banks, The bank of Bengal in
1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843. These three
banks also known as the Presidency banks were the independent units and
functioned well. These three banks were amalgamated in 1920 and new bank, the
Imperial Bank of India was established on 27th January, 1921.

With the passing of the State Bank of India Act in 1955 the undertaking of the
Imperial Bank of India was taken over by the newly constituted SBI. The Reserve
Bank of India (RBI) which is the Central bank was established in April, 1935 by
passing Reserve bank of India act 1935. The Central office of RBI is in Mumbai and
it controls all the other banks in the country.

In the wake of Swadeshi Movement, number of banks with the Indian management
were established in the country namely, Punjab National Bank Ltd., Bank of India
Ltd., Bank of Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of
the country were nationalized and on 15th April 1980, 6 more commercial private
sector banks were taken over by the government.

The first bank in India, though conservative, was established in 1786. From 1786
till today,the journey of Indian Banking System can be segregated into three distinct
phases. They areas mentioned below:

 Early phase from 1786 to 1969 of Indian Banks

9
 lOMoARcPSD|233 514 48

 Nationalization of Indian Banks and up to 1991 prior to Indian banking

sector Reforms.

10
 lOMoARcPSD|233 514 48

 New phase of Indian Banking System with the advent of Indian

Financial & Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase
II and Phase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established Bank of Bengal
(1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units
and called it Presidency Banks.

These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans
shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore.
Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda,
Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India
came in 1935.

During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100 banks,
mostly small. To streamline the functioning and activities of commercial banks, the
Government of India came up with The Banking Companies Act, 1949 which was
later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act
No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the
supervision of banking in India as the Central Banking Authority.

During those day’s public has lesser confidence in the banks. As an aftermath
deposit mobilization was slow. Abreast of it the savings bank facility provided by
the Postal department was comparatively safer. Moreover, funds were largely given
to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after
independence. In1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and semi-urban areas. It formed

11
 lOMoARcPSD|233 514 48

State Bank of India to act as the principal agent of RBI and to handle banking
transactions of the Union and State Governments all over the country.

12
 lOMoARcPSD|233 514 48

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on
19th July,1969, major process of nationalization was carried out. It was the effort of
the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in
the country was nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in
India under Government ownership.

The following are the steps taken by the Government of India to Regulate
BankingInstitutions in the Country:

 1949: Enactment of Banking Regulation Act.

 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose
to approximately 800% in deposits and advances took a huge jump by 11,000%.
Banking in the sunshine of Government ownership gave the public implicit faith
and immense confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector
in its reforms measure. In 1991, under the chairmanship of M Narasimham, a
committee was set up by his name which worked for the liberalization of banking
practices.

The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire system became more convenient and swift.
Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered
from any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the foreign
reserves are high, the capital account is not yet fully convertible, and banks and
their customers have limited foreign exchange exposure.

13
 lOMoARcPSD|233 514 48

BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their
own benefits and limitations in operating in India. Each has their own dedicated
target market. Few of them only work in rural sector while others in both rural as
well as urban. Many even are only catering in cities. Some are of Indian origin and
some are foreign players.

All these details and many more is discussed over here. The banks and its
relation with the customers, their mode of operation, the names of banks under
different groups and other such useful information’s are talked about.

One more section has been taken note of is the upcoming foreign banks in India.
The RBI has shown certain interest to involve more of foreign banks than the
existing one recently. This step has paved a way for few more foreign banks to start
business in India.

BANKING STRUCTURE IN INDIA

SCHEDULED BANKS IN INDIA

(1) Scheduled Commercial Banks

Public Sector Banks Private Sector Banks Foreign Banks In Regional Rural
India Banks

(26) (25) (29) (95)

❖ Nationalized ❖ Old Private
Bank Banks
❖ Other Public ❖ New Private
Sector Banks Banks
(IDBI)
❖ SBI And Its
Associates

(2) Scheduled Cooperative Banks

14
 lOMoARcPSD|233 514 48

Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks

15
 lOMoARcPSD|233 514 48

Public Sector Banks

Public sector banks are those banks which are owned by the Government. The Govt.
runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6
banks were also nationalized. Therefore in 1980 the number of nationalized bank
20. At present there are total 26 Public Sector Banks in India (As on 26-09-2009).
Of these 19 are nationalised banks, 6(STATE BANK OF INDORE ALSO
MERGED RECENTLY) belong to SBI &
associates group and 1 bank (IDBI Bank) is classified as other public sector bank.
Welfare is their primary objective.

Nationalised banks Other SBI & its Associates

Public
• Allahabad Bank
• Andhra Bank Sector • State Bank of India
• Bank Of Baroda Banks • State Bank of Hyderabad
• Bank Of India
• Bank Of Maharastra
IDBI • State Bank of Mysore
• Canara Bank
• Central Bank Of India (Industrial
Development • State Bank of Patiala
• Corporation Bank
• Dena Bank Bank Of
India)Ltd. • State Bank of Travancore
• Indian Bank
• Indian Overseas Bank • State Bank of Bikaner And
• Oriental Bank Of Jaipur
Commerce
• Punjab & Sind Bank
• Punjab National Bank
• Syndicate Bank (State Bank of Saurastra merged with SBI in the
• UCO Bank year 2008 and State Bank of Indore In 2010)
• Union Bank Of India
• United Bank Of India
• Vijaya Bank

16
 lOMoARcPSD|233 514 48

Private Sector Banks

These banks are owned and run by the private sector. Various banks in the country such as
ICICI Bank, HDFC Bank etc. An individual has control over there banks in preparation to
the share of the banks held by him.

Private banking in India was practiced since the beginning of banking system in India. The
first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank.
It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth
largest development bank in the world as Private Banks in India and has promoted world
class institutions in India.

The first Private Bank in India to receive an in principle approval from the Reserve Bank
of India was Housing Development Finance Corporation Limited, to set up a bank in the
private sector banks in India as part of the RBI's liberalization of the Indian Banking
Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office
in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995.
ING Vysya, yet another Private Bank of India was incorporated in the year 1930

Private sector banks have been subdivided into following 2 categories:-

17
 lOMoARcPSD|233 514 48

Old Private Sector Banks New Private Sector Banks

• Bank of Rajasthan Ltd.
• Catholic Syrian Bank Ltd. • Bank of Punjab Ltd. (since merged
• City Union Bank Ltd. with Centurian Bank)
• Dhanalakshmi Bank Ltd. • Centurian Bank of Punjab (since
• Federal Bank Ltd. merged with HDFC Bank)
• ING Vysya Bank Ltd. • Development Credit Bank Ltd.
• Jammu and Kashmir Bank Ltd. • HDFC Bank Ltd.
• Karnataka Bank Ltd. • ICICI Bank Ltd.
• Karur Vysya Bank Ltd. • IndusInd Bank Ltd.
• Lakshmi Vilas Bank Ltd. • Kotak Mahindra Bank Ltd.
• Nainital Bank Ltd. • Axis Bank (earlier UTI Bank)
• Ratnakar Bank Ltd. • Yes Bank Ltd.
• SBI Commercial and International
Bank Ltd.
• South Indian Bank Ltd.
• Tamilnad Mercantile Bank Ltd.
• United Western Bank Ltd.

Foreign Banks In India

18
 lOMoARcPSD|233 514 48

❖ ABN AMRO Bank N.V. HSBC (Hongkong &

❖ Abu Dhabi Commercial Shanghai Banking
Bank Ltd Corporation)
❖ American Express Bank ❖ JPMorgan Chase Bank
❖ Antwerp Diamond Bank ❖ Krung Thai Bank
❖ Arab Bangladesh Bank ❖ Mashreq Bank
❖ Bank International ❖ Mizuho Corporate Bank
Indonesia ❖ Oman International Bank
❖ Bank of America ❖ Shinhan Bank
❖ Bank of Bahrain & Kuwait ❖ Société Générale
❖ Bank of Ceylon ❖ Sonali Bank
❖ Bank of Nova Scotia ❖ Standard Chartered Bank
❖ Bank of Tokyo Mitsubishi ❖ State Bank of Mauritius
UFJ
❖ Barclays Bank
❖ BNP Paribas
❖ Calyon Bank
❖ ChinaTrust Commercial
Bank
❖ Citibank
❖ DBS Bank
❖ Deutsche Bank
❖

Cooperative banks in India

19
 lOMoARcPSD|233 514 48

The Cooperative bank is an important constituent of the Indian Financial System,

judging by the role assigned to co operative, the expectations the co operative is
supposed to fulfil, their number, and the number of offices the cooperative bank
operate. Though the co operative movement originated in the West, but the
importance of such banks have assumed in India is rarely paralleled anywhere else
in the world. The cooperative banks in India plays an important role even today in
rural financing. The businessess of cooperative bank in the urban areas also has
increased phenomenally in recent years due to the sharp increase in the number of
primary co-operative banks.
Co operative Banks in India are registered under the Co-operative Societies
Act. The cooperative bank is also regulated by the RBI. They are governed by
the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies)
Act, 1965.

Rural banks in India

Rural banking in India started since the establishment of banking sector in India.
Rural Banks in those days mainly focussed upon the agro sector. Regional rural
banks in India penetrated every corner of the country and extended a helping hand
in the growth process of the country.

SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI
is spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh
to North East. The total number of SBIs Regional Rural Banks in India branches is
2349 (16%).
Till date in rural banking in India, there are 14,475 rural banks in the country of
which 2126 (91%) are located in remote rural areas.

Apart from SBI, there are other few banks which functions for the development
of the rural areas in India. Few of them are as follows.

Haryana State Cooperative Apex Bank Limited

The Haryana State Cooperative Apex Bank Ltd. commonly called as

HARCOBANK plays a vital role in rural banking in the economy of Haryana State
and has been providing aids and financing farmers, rural artisans, agricultural
labourers, entrepreneurs, etc. in the state and giving service to its depositors.

NABARD

20
 lOMoARcPSD|233 514 48

National Bank for Agriculture and Rural Development (NABARD) is a development

21
 lOMoARcPSD|233 514 48

bank in the sector of Regional Rural Banks in India. It provides and regulates
credit and gives service for the promotion and development of rural sectors mainly
agriculture, small scale industries, cottage and village industries, handicrafts. It
also finance rural crafts and other allied rural economic activities to promote
integrated rural development. It helps in securing rural prosperity and its connected
matters.

Sindhanur Urban Souharda Co-operative Bank

Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK

is the first of its kind in rural banks of India. The impressive story of its inception
is interesting and inspiring for all the youth of this country.

United Bank of India

United Bank of India (UBI) also plays an important role in regional rural banks. It
has expanded its branch network in a big way to actively participate in the
developmental of the rural and semi-urban areas in conformity with the objectives
of nationalisation.

Syndicate Bank

Syndicate Bank was firmly rooted in rural India as rural banking and have a clear
vision of future India by understanding the grassroot realities. Its progress has
been abreast of the phase of progressive banking in India especially in rural
banks.

 Fact Files of Banks in India

The first Bank in India to be given an ISO certification. Canara Bank

22
 lOMoARcPSD|233 514 48

The first Bank in Northern India to get ISO 9002 certification Punjab and Sind
for their selected branches. Bank

The first Indian Bank to have been started solely with Indian capital. Punjab National
Bank

The first among the Private Sector Banks in Kerala to become Scheduled South Indian Bank
Bank in 1946 under the RBI act.

India’s oldest,largest and the most successful commercial bank offering the State Bank of India
widest possible rang of domestic,international and NRI products and
services,through its vast network in India and overseas.

India’s second largest Private Sector Bank and is now the largest scheduled The Federal Bank
commercial bank in India. Limited

Bank which started as Private Shareholders Banks,mostly European Imperial Bank of

shareholders. India

The first Indian Bank to open a branch outside India in London in 1946 and Bank of India,
the first to open a branch in continental Europe at Paris in 1974 founded in 1906 in
Mumbai.

The oldest Public Sector Bank in India having branches all over India and Allahabad Bank
serving the customers for the last 132 years.

The first Indian Commercial Bank which was wholly owned and managed by Central Bank of
Indians. India

INDIAN BANKING INDUSTRY

23
 lOMoARcPSD|233 514 48

The Indian banking market is growing at an astonishing rate, with Assets expected
to reach US$1 trillion by 2010. An expanding economy, middleclass, and
technological innovations are all contributing to this growth.
The country’s middle class accounts for over 320 million People. In correlation with
the growth of the economy, rising income levels, increased standard of living, and
affordability of banking products are promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution, Focusing on the

expansion of retail and rural banking. Players are becoming increasingly customer
-centric in their approach, which has resulted in innovative methods of offering new
banking products and services. Banks are now realizing the importance of being a
big playerand are beginning to focus their attention on mergers and acquisitions to
take advantage of economies of scale and/or comply with Basel II
regulation.“Indian banking industry assets are expected to reach US$1 trillion by
2010 and are poised to receive a greater infusion of foreign capital,” says Prathima
Rajan, analyst in Celent's banking group and author of the report. “The banking
industry should focus on having a small number of large players that can compete
globally rather than having a large number of fragmented players.

24
 lOMoARcPSD|233 514 48

Chapter 2
Type
Private
Y BSE & NSE:ICICI,
NYSE: IBN
’S PROFILE
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

K.V. Kamath,Chairman
Chanda Kochhar, Managing
Director & CEO
Key people 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

Gaurav Narang 31, 2009.) 25 20
 lOMoARcPSD|233 514 48

B.B.A
Website www.icicibank.com

26
 lOMoARcPSD|233 514 48

INTRODUCTION TO ICICI BANK

 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.
21

27
 lOMoARcPSD|233 514 48

+ 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

22

28
 lOMoARcPSD|233 514 48

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.
+ 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

29
 lOMoARcPSD|233 514 48

Mercantile Bank (est. 1933) and Illanji Bank (established

1904) in the 1960s. In October 2001, the Boards of
Directors of ICICI and ICICI Bank

30
 lOMoARcPSD|233 514 48

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, 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

31
 lOMoARcPSD|233 514 48

introduced partnership model wherein ICICI Bank would

forge an alliance with existing micro finance institutions
(MFIs). The MFI would undertake the promotional role
of

32
 lOMoARcPSD|233 514 48

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 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.

+ 2005 : 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 2005, 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.

+ 2006 : 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

33
 lOMoARcPSD|233 514 48

launched. Disha provides free credit counseling, financial

planning and debt management services. ; Bhoomi puja
conducted for a regional hub in Hyderabad, Andhra Pradesh.

34
 lOMoARcPSD|233 514 48

+ 2007 : 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.

35
 lOMoARcPSD|233 514 48

+ 2008 : 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
2008 till date and the second largest deal in Asia (ex- Japan &
Australia) since the beginning of 2007. ; ICICI Bank
launches ICICIACTIVE - Banking Interactive Service -
along with DISHTV, which will allow viewers to see
information about the Bank's products and services and
contact details on their DISHTV screens. ; ICICI Bank and
British Airways launch co-branded credit card, which is
designed to earn accelerated reward points to the card holders
with every British Airways flight or by spending on everyday
purchases.

+ 2009: ICICI Bank Board appoints Mr K. V. Kamath as non-

executive Chairman and Ms Chanda Kochhar as Managing
Director & CEO effective May 1, 2009, while the existing
non- executive Chairman Mr N Vaghul retires after
completing his term on April 30, 2009 ; ICICI bank ties up
with BSNL Cell One for bill payments, it will facilitate bill
payment for BSNL Cell One users through
www.icicibank.com across all the 27 circles of BSNL. ;
ICICI Bank Limited acting through its Hong Kong Branch
(ICICI Bank) signed an agreement on Export Credit Line
totaling up to US$100 million with the Japan Bank for
International Cooperation (JBIC) which constitutes the
international wing of Japan Finance Corporation. ; ICICI
Bank Limited acting through its Hong Kong Branch (ICICI
Bank) signed a loan agreement with the Export-Import Bank
of China (China Exim) for USD 98 million under the Two-
step Buyer Credit (Export Credit) arrangement. ICICI Bank
is the first Indian Bank to have entered into this arrangement
with China Exim ; ICICI Bank with Singapore Airlines
launched “ICICI Bank Singapore Airlines Visa Platinum
Credit Card”, the Card has exclusive privileges especially
designed for the members. ; ICICI Bank announced an
association with mChek, India’s leading mobile payment
solutions provider, to facilitate mChek services to all ICICI

36
 lOMoARcPSD|233 514 48

Bank Debit and Credit Card customers. These are electronic

cards issued to the customers with mChek application on
their mobile phone. ; Ms

26

37
 lOMoARcPSD|233 514 48

Chanda Kochhar took charge as the Managing Director &

CEO of ICICI Bank from May 1, 2009.

ICICI BANK TODAY

ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment
Corporation of India) is India's largest private sector bank by market capitalisation
and second largest overall in terms of assets. Trotal assets of Rs. 3,562.28 billion
(US$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$
648.8 million) for the nine months ended December 31, 2009. The Bank also has a
network of 1,640+ branches (as on February 11, 2010) and about 4,721 ATMs in
India and presence in 18 countries, as well as some 24 million customers (at the end
of July 2007). ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels
and 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 FY2009. The
bank's Current and savings account (CASA) ratio increased to 28.7% at March 31,
2009 from 26.1% at March 31, 2008. Increase of Rs. 5,286 crore in CASA deposits
in quarter ended March 31,2009.
ICICI Bank is one of the Big Four Banks of India with State Bank of India, Axis
Bank and HDFC Bank

ICICI Bank Group

38
lOMoARcPSD|233 514 48

27

39
 lOMoARcPSD|233 514 48

 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 Bandra
(E)
Mumbai.
Phone: 91-022-653 7914
Website: www.icicibank.com

28

40
 lOMoARcPSD|233 514 48

Capital structure

29

41
 lOMoARcPSD|233 514 48

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
.........................................................
Mr. Sandeep Bakhshi,
Deputy Managing Director
.........................................................
Mr. N. S. Kannan,
Executive Director & CFO
.........................................................
Mr. K. Ramkumar,
Executive Director
.........................................................

42
 lOMoARcPSD|233 514 48

Mr. Sonjoy Chatterjee,

Executive Director

 Board committee

Board Governance Remuneration &

Audit Committee
Nomination Committee
Mr. Sridar Iyengar, Chairman Mr. M. K. Sharma, Chairman
Mr. M. K. Sharma, Alternate Chairman Mr. K. V. Kamath
Mr. Narendra Murkumbi Mr. Anupam Puri
Mr. V. Sridar Prof. Marti G. Subrahmanyam

Corporate Social Responsibility Customer Service Committee

Committee

Mr. M. K. Sharma, Chairman Mr. K. V. Kamath, Chairman

Dr. Anup K. Pujari Mr. Narendra Murkumbi
Ms. Chanda D. Kochhar 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. M. K. Sharma, Chairman

Mr. Narendra Murkumbi Mr. K. V. Kamath
Mr. M. S. Ramachandran Mr. M .K. Mr. Narendra Murkumbi
Sharma Ms. Chanda D. Kochhar
Ms. Chanda D. Kochhar Mr. Sandeep Bakhshi

Risk Committee Share Transfer & Shareholders'/

Investors' Grievance Committee

Mr. K. V. Kamath, Chairman Mr. M. K. Sharma, Chairman

Mr. Sridar Iyengar Mr. Narendra Murkumbi
Dr. Anup K. Pujari Mr. N. S. Kannan
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

43
 lOMoARcPSD|233 514 48

Mr. Sonjoy Chatterjee

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 realisation of India’s potential.
• Maintain a healthy financial profile and diversify our earnings across
businesses and geographies.
• Maintain high standards of governance and ethics.
• Contribute positively to the various countries and markets in which we operate.
• Create value for our stakeholders.

44
 lOMoARcPSD|233 514 48

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 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.

45
 lOMoARcPSD|233 514 48

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

46
 lOMoARcPSD|233 514 48

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 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 2008 (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

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.

47
 lOMoARcPSD|233 514 48

PRODUCTS AND SERVICES

❖ PERSONAL BANKING
Loan Product Deposit Product Investment &
Insurance
• Auto loan • Savings A/C • Mutual Funds
• Loan against • Current A/C • Bonds
security • Fixed Deposits • Knowledge Centre
• Loan against • Demat A/C • Insurance
property • Safe Deposit • General And Health
• Personal loan Lockers Insurance
• Credit card • Equity And
• 2- wheeler loan Derivatives
• Commercial • Mudra Gold Bar
vehicles finance
• Home loans
• Retail business
banking
• Tractor loan
• Working capital
finance
• Construction
• Equipment finance
• Health care finance
• Education loan
• Gold loan

Cards Payment Services Access To Bank

• Credit Card • Net Safe • Net Banking
• Debit Card • Merchant • One View
• Prepaid Card • Prepaid Refill • InstaAlert Mobile
• Bill Pay Banking
-------------------------------- • Visa Bill Pay • ATM
Forex services • InstaPay • Phone Banking

48
 lOMoARcPSD|233 514 48

-------------------------------- • Direct Pay • Email Statements

• Product And • VisaMoney • Branch Network
Services Transfers
• Trade Services • E-Monies Electronic
• Forex Service Funds Transfer
Branch Locater • Online Payment Of
• RBI Guidelines Direct Tax

❖ WHOLESALE BANKING

Corporate Small and Medium Financial Institutions

Enterprises and
Trusts

• Funded Services • Funded Services BANKS

• Non Funded • Non Funded
Services Services • Clearing Sub-Membership
• Value Added • Specialized Services • RTGS Sub-Membership
Services • Value Added • Fund Transfer
• Internet Banking Services • ATM Tie- Ups
• Internet Banking • Corporate Salary A/C
• Tax Collection

Financial Institutions

Mutual Funds

Stock Brockers

Insurance Companies

Commodities Business

Trusts

49
 lOMoARcPSD|233 514 48

❖ NRI SERVICES

Accounts & Deposits Remittances

• Rupee Saving A/C • North America

• Rupee Current A/C • Uk
• Rupee Fixed Deposits • Europe
• Foreign Currency Deposits • South East Asia
• Accounts For Returning Indians • Middle East
• Africa
• Others
Quick Remit
India Link
Check Lock Box
Telegraphic/ Wire Transfer
Fund Transfer Cheques/Dds/Tcs

Investment & Insurances Loans

• Mutual Funds • Home Loans

• Insurance • Loans Against Securities
• Private Banking • Loans Against Deposits
• Portfolio Investment Scheme • Gold Card Credit

Payment Services Access To Bank

• Net Safe • Net Banking

• Bill Pay • One View
• InstaPay • InstaAlert
• DirectPay • ATM

50
 lOMoARcPSD|233 514 48

• VisaMoney • Phone Banking

• Online Donation • Email Statements
• Branch Networks

❖ 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.

“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.

51
 lOMoARcPSD|233 514 48

• Higher interest rate on FD/RD:avail the combined benefits of

safety,felexibility and attractive returns with ICICI Bank Fixed Deposit and
Recurring Deposit.
• Free special senior citizen LIFE PLUS debit card.
• Money multiplies facility.
• Extended banking hours allows you to visit our branches,as per your convenience.
• Anywhere banking access to various services,ICICI Bank has to offer –
anytime,anywhere and from any place,including branches,ATMs and phone
banking.
• Nomination facility available.
• Quarterly average balance(QAB) requirement of Rs.5000.
• Quarterly physical statements are delivered to your doorstep to absolutely
free of cost.
• Passbook on request.

Young Stars Account:

Young Stars is a banking service for children, aged

1day -18 years, brought to you by ICICI Bank to help
the parents meet the present and future aspirations that
they hold for their child. It offers various savings and
investment options to the parent along with teaching
the child to manage his/her personal finance in a more
responsible and independent
manner.Young Stars will guide your child through the 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.

52
 lOMoARcPSD|233 514 48

• 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.

53
 lOMoARcPSD|233 514 48

• 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 numer ous banking tranactions need a current
account as i t

• Allows running account supporting unlimited withdrawals and deposits.

• Is meant for convenience and not to save money.

Roaming Current Account

Only Roaming Current Account from ICICI Bank travels the distance with
customers business. With advanced technological features such as MCC and LCC,
banking needs are well taken care of, customers can access their accounts at over
500 networked branches across the country.
So while customers take care of their business, ICICI Bank’s Roaming Current
Account simplifies banking for them.

Salary Accounts
Salary Account is a feature rich corporate payroll account with benefits for both corporates
and its employees.

• The process of drawing cheques for salaries is replaced by

sending a single ASCII file to the bank and the amount is
dir ectly 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.

54
 lOMoARcPSD|233 514 48

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.

• 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.

55
 lOMoARcPSD|233 514 48

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

56
 lOMoARcPSD|233 514 48

that are identical to the fixed deposit rates and most importantly no TDS is applicable in it
.the minimum balance of deposit is of Rs.500 and thereafter in multiples of Rs.100 the
minimum period is 6 months and thereafter in multiples of 3 months,nomination facility is
also available.

Security Deposits:

A few Corporates stipulate to their new employees to

provide Security Deposit to reduce attrition. ICICI
Bank’s proposal for the employee is to keep the
Security Deposit in the form of a Fixed Deposit (FD)
with the Bank. The employee cannot withdraw such
FDs without the consent of the company and the
company has the right to withdraw the FD in the event
of employee leaving the organization before a certain
stipulated period.

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 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)

57
 lOMoARcPSD|233 514 48

PRIVILEGE BANKING:

58
 lOMoARcPSD|233 514 48

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.

• 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 chequebook.
• 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.
• Prefrential 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.
• 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.

59
 lOMoARcPSD|233 514 48

• 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.

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, 2009 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 market-driven. For optimum returns, the Government has
appointed six fund managers for subscribers to choose from.

❖ 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
Gaurav Narang
B.B.A 43
60
 lOMoARcPSD|233 514 48

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

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.

44

61
 lOMoARcPSD|233 514 48

COMMERCIAL VEHICLE LOAN

• Reaches you through more than 700

locations across the country.
• Range of products under one umbrella.
• Funding of various products like HCVs,
Buses, MCVs, LCVs, 3 wheelers & used
vehicle.
• Range of services on existing loans &
extended products like funding of new
vehicles, refinance
on used vehicles, balance transfer on high cost loans, top up on existing loans,
Xtend product, working capital loans & other banking products..
• Preferred financier status with most of the leading manufacturers.
• Simple documentation.
• Quick turn around time.
• Flexible financing solutions to meet the individual requirement.
TWO WHEELER LOANS:
"Zoom" away in your favourite two wheeler. ICICI provides
attractive schemes at competitive interest rates.

• Finance facility available for all two wheelers

ranging from mopeds to motor bikes.
• Now avail Finance upto 90%* of the On Road Cost of
the vehicle, repayable in convenient tenure options
ranging from 6
months to 36 months*.
• Ride Easy Pay Easy with ICICI Bank Two Wheeler Loans.
• In an unlikely case of your not meeting our norms NO PROBLEM - you can
still avail our loan, any blood relative can be your co-applicant.
• Existing ICICI Bank Customers ride away on your favourite Two Wheeler by
availing Loan On Phone*-- a facility to get an instant loan over the phone!! Apply
for loan online, call or through sms.

FARM EQUIPMENT LOANS:

• ICICI is the preferred financier for almost all

leading tractor manufacturers in the country.
• ICICI finances farm equipments in over 381
locations spread across the country.
• Provides fast processing of files with easy documentation.
• Flexible repayment options in tandem with the
farmer's seasonal liquidity.
• Monthly, Quarterly and Half-yearly repayment
patterns to choose from. Comfortable repayment tenures from 1 year to 6 years.

62
 lOMoARcPSD|233 514 48

CONSTRUCTION EQUIPMENT LOAN

Having funded infrastructure for over 4 decades, ICICI
understands the need of the customers better. ICICI Bank
offers attractive financial packages through their excellent
distribution network. The products are customised for new
entrepreneur to large business houses. ICICI has tie-up
with leading construction equipment manufacturers for
wide range of products. The Bank
take over existing high cost loans at competitive terms resulting in huge savings and
is quick in processing due to easy formalities and one time sanction of loans for
disbursement over a period of time.

OFFICE EQUIPMENT LOAN:

► Minimum documentation required . ► Doorstep Service. ►Competitive Interest rates.

►Flexible repayment structure. ►Hassle-free application process with the click of a mouse.
►Details on your application status online.
MEDICAL EQUIPMENT LOAN:

Professional doctors are aware of the distinct advantages that the latest medical
equipment can give their patients. ICICI Bank Medical Equipment Loans supports
professionals in their effort to give the best to their patients. It's our humble way of
being involved in a noble profession.
Loans are offered for:

• Purchase of New equipments.

• Takeover of Existing loans.

Our Key features are:

• Doorstep Service.
• Funding in more than 150 locations across the country.
• The bank provides Competitive interest rates.
• ICICI also offers flexible repayment structure.

LOAN AGAINST SECURITIES

Loans against Securities enables customers to obtain loans against their securities. So
they get instant liquidity without having to sell their securities.

63
 lOMoARcPSD|233 514 48

All customers have to do is pledge your securities in favour of ICICI Bank The Bank will
then grant them an overdraft facility upto a value determined on the basis of the securities
pledged by

64
 lOMoARcPSD|233 514 48

them. A current account will be opened and customer can withdraw money as and
when they require. Interest will be charged only on the amount withdrawn and for the
time span utilised. ICICI offer loans against:

• Demat Shares
• RBI Relief Bonds
• Mutual Funds Units
• India Millennium Deposits (IMDs)
• ICICI Bank Bonds
• Life Insurance Policies (Single Premium)

CREDIT CARDS:

ICICI Bank Credit Cards give you the facility of cash,

convenience and a range of benefits, anywhere in the world.
These benefits range from life timefree cards, Insurance
benefits, global emergency assistance service,discounts, utility
payments, travel discounts and much more.

DEBIT CARDS:

The ICICI Bank Debit Card is a revolutionary form of cash

that allows customers to access their bank account around
the clock, around the world.The ICICI Bank Debit Card
can be used for shopping at more than 100,000 merchants
in India and 13 million merchants worldwide.

TRAVEL CARD:

Presenting ICICI Bank Travel Card. The Hassle Free way to

Travel the world. Traveling with US Dollar, Euro, Pound
Sterling or Swiss Francs; Looking for security and
convenience; take ICICI Bank Travel Card. Issued in
duplicate. Offers the Pin based security. Has the convenience
of usage of Credit or Debit card.

65
 lOMoARcPSD|233 514 48

PRE PAID CARDS:

ICICI Bank brings to you a complete bouquet of pre-paid

cards providing payment solutions at your fingertips. ICICI
Bank pre- paid cards are a safe &convenient way for
associate payments, disbursements, gifting & small ticket
transactions. Pre-paid cards are available on a VISA platform
thus providing accessibility to over one lakh merchant
establishments & cash withdrawal from all VISA ATMs in
India.

 INVESTMENTS
ICICI Bank cares
about all needs.
Along with Deposit
products and Loan
offerings, ICICI
Bank assists people
to manage
their finances by providing various investment options ranging from ICICI Bank Tax
Saving Bonds to Equity Investments through Initial Public Offers and Investment in
Pure Gold.
ICICI Bank facilitates following investment products:

• ICICI Bank Tax Saving Bonds

• Government of India Bonds
• Investment in Mutual Funds
• Initial Public Offers by Corporate
• Investment in "Pure Gold"
• Foreign Exchange Services
• Senior Citizens Savings Scheme, 2004

Customers can invest in above products through any of ICICI bank branches. For select
products ICICI Bank also provides the ease of investing through electronic channels like
ATMs and Internet (ICICIdirect.com)

ICICI BANK BONDS

66
 lOMoARcPSD|233 514 48

 All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA" by
ICRA indicating the highest degree of safety for your money.

67
 lOMoARcPSD|233 514 48

 Investment in ICICI Bank Bonds are eligible for tax rebate under Sec 88 to the full
extent possible.
 Bonds are listed on BSE, NSE.

GOI BONDS

 8% Savings Bonds (Taxable), 2003.

 Low risk.
 Reasonable investment tenure.
 Nomination facility available.
 Cannot be traded in secondary market.
 Interest income taxable.

Mutual Funds
Mutual Funds pool money of various investors to purchase a wide variety of securities
while pursuing a specific goal. Selection of Securities for the purpose is done by
specialists from the field. Returns generated are distributed to the Investors.
Mutual Fund Companies offer various schemes. Investors can choose any particular
Fund/Scheme or mix of Funds/Schemes depending upon their perception towards risk.
Investment is done on the basis of prevailing Net Asset Values of various schemes. Mutual
Funds Investments are subject to Market Risks.

Types of Funds Sold

ICICI Bank helps investor determine which types of funds you need to meet your
investment goals. This may include the following types of funds:

Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income

Schemes etc.

Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes

etc. Hybrid Funds: Balanced Schemes, Special Schemes - Pension

Schemes, Child education Schemes etc.

ICICI Bank helps investors identify an appropriate mix of Mutual Fund schemes
for their portfolio using asset allocation strategies.

Through ICICI Bank investor can invest in various schemes of multiple mutual funds with
decent performance record. investor can take the aid of ICICI Bank’s various research
reports on mutual funds and their schemes before choosing a scheme for investment. ICICI
Bank offers investment in Mutual Funds through Multiple Channels. With ICICI Bank,
investor can invest in Mutual Funds through following channels.

68
 lOMoARcPSD|233 514 48

• ICICI Bank Branches

• ICICI Bank ATM’S
• ICICIdirect.com

And provide a Dedicated workforce to serve clients.

• Before being deputed, our officers complete a comprehensive training program

and, once deputed, they receive thorough instructions in financial planning skills
and techniques

• Throughout their careers officers also attend programs to update their skills. All
officers in charge of Mutual Funds are certified professionals by AMFI
(Association of Mutual Funds in India)
• Many of these officers also hold professional degrees like - MBA, CA, ICWA,
and CFA etc.

ICICI keeps the investors updated on the latest happenings in the Mutual Fund industry
and the various financial markets through regular electronic updates (daily & weekly)
through Emails. ICICI also send out a monthly magazine on investments to their
customers.

Initial public offerings (IPO)

Investor can invest in IPOs online through www.icicidirect.com with same convenience of
investing in equities - hassle-free and with zero paper work. Also, get in-depth analyses of
new IPOs issues (Initial Public Offerings) which are about to hit the market. IPO calendar,
recent IPO listings, prospectus/offer documents and live prices will help you keep on top of
the IPO markets.

ICICI Bank Pure Gold

Gold has been traditionally the most favored form of investment for Indians. In fact,
India, even today is amongst the highest consumers of Gold in the world. However, the
Gold market remains largely unorganized with reliability and convenience remaining
the key issues for gold buyers in the country.ICICI Bank with its `Pure Gold' offer
attempts to bridge the gap between the need of the customers for buying gold and
availability of an organized avenue to satisfy that need, by taking care of the two key
components:-

Reliability and Convenience.

Reliability 24 Carat ICICI Bank Pure Gold is imported from Switzerland. This Gold
carries a 99.99% Assay Certification, signifying highest level of purity, as per
international standards. Convenience
ICICI Bank Pure Gold is competitively priced based on daily prices in the international
bullion market. Currently, gold is available in 2.5g, 5g, 8g, 20g and 50g categories.

69
 lOMoARcPSD|233 514 48

PRIVATE BANKING

70
 lOMoARcPSD|233 514 48

Benefits:

Comprehensive range of products and services

-Savings Account, Fixed Deposits, Recurring Deposits, Quantum Optima, Current Accounts,
-Resident Foreign Currency (Domestic) Accounts etc.
-Asset Products- Home Loans, Car & Personal Loans, Loan Against Securities etc.
-Investments- Government of India Bonds, Mutual Funds, Capital Gain Bond etc.
-Insurance
-Web Trade and Demat Accounts
-Gold Coins & Bureau de Change
-International Debit and Credit cards
-And many more....

Exclusivity and Convenience

-Dedicated Officer
-Separate interaction area in the branch
-Anywhere Banking facility
-Exclusive Phone Banking service
-Competitive Pricing
-Reduced rates for products and services
-Several Complimentary Offers
-Value-linked benefits

Competitive Pricing

-Reduced rates for products and services

-Several Complimentary Offers

-Value-linked benefits

❖ SERVICES

INVESTMENT SERVICES

• DematServices
A Demat Account allows employees transact in shares instantaneously in a
safe and secure manner.

71
 lOMoARcPSD|233 514 48

• ReliefBonds/MutualFunds/Insurance
Salary Account customers can now invest in Government of India relief and
savings bonds, a basket of mutual funds, foreign exchange facilities and
Insurance products through ICICI Bank.
• GoldCoin
Employees can buy 24 karats Pure Gold, which ICICI Bank brings to you. Each
coin comes to you straight from Switzerland. Refined to 99.99% fine gold and
sealed with a unique Certificate of Authencity- guaranteeing you its purity.

FOREX SERVICES

ICICI Bank's Foreign Exchange Services will help you organize your foreign exchange in
the most hassle free manner. Whether its Foreign Currency, Travelers Cheques or Travel
Card, ICICI Bank Foreign Exchange Services is a one-stop solution to your foreign
exchange requirement.

NRI SERVICES
Wherever people may be, in India or abroad, ICICI Bank has created a wide range of
products and services that provide customers complete financial solutions. Helping them
to make the right decisions at the right time and can be rest assured that they are in the safe
and trustworthy hands of ICICI bank.

Deposit Products:

1. NRE Account: An NRI can open a Non-Resident External Account(NRE Account)with

any bank in India. The account not only lets customers manage their money that they earn
in India (as permitted by FEMA Regulations) but also of the money earned abroad. The
money in the account and the interest earned on it can be sent back outside India without
any authorization from RBI. The Account can be opened and funded in any permissible
currency, and is later converted into Indian Rupees. This Account offers dual benefits of
high returns as offered by the fixed deposits and liquidity as offered by the savings account.
The Account helps customers take care of all their financial needs, quickly and
conveniently. In addition to attractive rupee interest rates customers get free money
transfers, easy access for the customer as well as for his/her family back in India, and a free
mandate card for the loved ones in India.

2 . NRO Account: The Non-Resident Ordinary Account (NRO Account) allows customers
to hold the money they have earned in India such as rent, dividends, pensions etc. They can
open the account and can fund it in any permissible currency and is later converted into
Indian Rupees.
NRO account offers attractive exchange rates upon conversion of foreign currency into
Indian Rupees. This account to offers high returns and liquidity. However, the interest

72
 lOMoARcPSD|233 514 48

earned on the principal amount in the account can be sent back after the deductions of
tax in India.

73
 lOMoARcPSD|233 514 48

3. FCNR Account:A Foreign Currency Non Resident Account (FCNR Account) allows
customers to maintain funds as Term Deposits in various foreign currencies, thereby
guarding customers against fluctuating exchange rates. Under this account both the
principal amount and the interest can be sent back fully, and are taxable in India. The
tenures range from 12 to 36 month

4. RFC Account: By opening a Resident Foreign Currency Account (RFC Account)

customers can maintain funds as Term deposits in various foreign currencies even after
they have returned to India. Both the principal and the interest can be remitted outside
India. The tenures range from 1month to 36months.

Advisory Services
Private Equity Placement
ICICI Bank's Small Enterprises Group's (SEG) Investment Banking team is dedicated to
provide you niche and exclusive investment banking services.

The ICICI Bank Edge

• Capital Raising
At times for a growing company, the amount of capital that a promoter can infuse
in the business becomes limited. Businesses can be self sufficient for capital needs
in their nascent and initial growth phases. However to meet expansion and growth
plans, external capital is imperative. We at ICICI Bank, with our lending
experience, fully understand this and help clients raise equity to fund growth. We
have developed a strong network of domestic and international investors who are
keen to partner with such success stories in India and these players solicit our
advice for investing into such companies. .
• Buy And Sell Side Advisory
Inorganically adding growth to a business or hiving off non-core activities or
opportunity to realize right value for the business created or an instance of taking a
company on a bigger scale are the ways to strategize today. We at ICICI Bank
provide assistance on both buy side and sell side transaction. With a large client
franchise built, more than 10,000 asset clients and international linkages in
developed economies, ICICI Bank can bring in the best synergy partner to
conclude a sell side or buy side advisory assignment.
• Special Situation Solutions

74
 lOMoARcPSD|233 514 48

Backed by institutional legacy, in-depth understanding and linkages with key

stakeholders in the process of turnaround, ICICI Bank's Investment Banking team
can

75
 lOMoARcPSD|233 514 48

design solutions for special situations like CDR, BIFR, OTS, etc. Count on us to
turn around the capital structure of your company and bring in additional capital for
growth.

Online Services
ICICI Bank provides a variety of online services.now these is no need of walking up to
the bank branch, every time you need to do your banking. As you can do a lot of it online.
From paying your bills to transferring funds, booking your rail/air tickets, shopping,
sending a money order and doing lots more.

 AWARDS & RECOGNITION 


For the third year in a row ICICI Bank has won The Asset Triple A Country Awards for Best Domestic Bank
in India.

ICICI Bank won the Most Admired Knowledge Enterprises (MAKE) India 2009 Award. ICICI Bank won the
first place in "Maximizing Enterprise Intellectual Capital" category, October 28, 2009.

Ms Chanda Kochhar, MD and CEO was awarded with the Indian Business Women Leadership Award at
NDTV Profit Business Leadership Awards , October 26, 2009.

ICICI Bank received two awards in CNBC Awaaz Consumer Awards; one for the most preferred auto loan and
the other for most preferred credit Card, on September 30, 2009.

Ms. Chanda Kochhar, Managing Director & CEO ranked in the top 20 of the World's 100 Most Powerful
Women list compiled by Forbes, August 2009.

Financial Express at its FE India's Best Banks Awards, honoured Mr. K.V. Kamath, Chairman with the

76
 lOMoARcPSD|233 514 48

Lifetime Achievement Award , July 25, 2009.

ICICI Bank won Asset Triple A Investment Awards for the Best Derivative House, India. In addition ICICI
Bank were Highly commended , Local Currency Structured product, India for 1.5 year ADR GDR linked
Range Accrual Note., July 2009.

ICICI bank won in three categories at World finance Banking awards on June 16, 2009
• Best NRI Services bank
• Excellence in Private Banking, APAC Region
• Excellence in Remittance Business, APAC Region.

ICICI Bank Mobile Banking was adjudged "Best Bank Award for Initiatives in Mobile Payments and
Banking" by IDRBT, on May 18, 2009 in Hyderabad.

ICICI Bank's b2 branchfree banking was adjudged "Best E-Banking Project Implementation Award 2008" by
The Asian Banker, on May 11, 2009 at the China World Hotel in Beijing.

ICICI Bank bags the “Best bank in SME financing (Private Sector)” at the Dun & Bradstreet Banking awards
2009.
ICICI Bank NRI services wins the “Excellence in Business Model Innovation Award” in the eighth Asian
Banker Excellence in Retail Financial Services Awards Programme.




ICICI Bank's Rural Micro Banking and Agri-Business Group wins WOW Event & Experiential Marketing
Award in two categories - “Rural Marketing programme of the year” and “Small Budget On Ground
Promotion of the Year”. These awards were given for Cattle Loan 'Kamdhenu Campaign' and 'Talkies on the
move campaign' respectively.

ICICI Bank's Germany Branch has been certified by “Stiftung Warrentest”. ICICI Bank is ranked 2nd amongst
57 savings products across 19 banks

ICICI Bank Germany won the yearly banking test of the investor magazine €uro in the “call money”category.

The ICICI Bank was awarded the runner's up position in Gartner Business Intelligence and Excellence Award
for Asia Pacific for its Business Intelligence functions.

ICICI Bank's Organisational Excellence Group was recently awarded ISO 9001:2008 certification by TUV
Nord. The scope of certification comprised processes around consulting and capability building on methods of

77
 lOMoARcPSD|233 514 48







quality & improvements.

ICICI Bank has been awarded the following titles under The Asset Triple A Country Awards for 2009:
• Best Transaction Bank in India
• Best Trade Finance Bank in India
• Best Cash Management Bank in India
• Best Domestic Custodian in India

ICICI Bank has bagged the Best Cash Management Bank in India award for the second year in a row. The
other awards have been bagged for the third year in a row.

ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the Canadian Helen Keller
Centre's Fifth Annual Luncheon in Toronto. The award was given to ICICI Bank its long-standing support to
this unique training centre for people who are deaf-blind.

78
 lOMoARcPSD|233 514 48







Chapter 3
RESEARCH METHODOLOGY































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

79
 lOMoARcPSD|233 514 48

conducting the research the research so that it way be judged by the reader whether
the methodology of work done is sound or not.

80
 lOMoARcPSD|233 514 48

The Research Methodology here includes:-

 Objective of study

 Meaning of Research.

 Research Problem.

 Research Design.

 Data Collection method.

 Analysis and interpretation of Data

 Limitation of study

OBJECTIVE OF THE STUDY

Objectives are the ends that states specifically how goal be achieved. Every study
must have an objective for which all the efforts have been done. Without objective
no research can be conducted and no result can be obtained. On the basis of
objective all the research process is followed. Objectives are the main aspect of
every study. The objective of the study
gives direction to go through the research problem. It guides the researcher and
keeps him on track. I have two objectives regarding my research project. These are
shown below :-
1. Primary objective
2. Secondary objective

1. Primary objective :-
1) To study the software used in ICICI Bank.

81
 lOMoARcPSD|233 514 48

2) To analyse the financial statements of the corporation to

assess it’s true financial position by the use of ratios.

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.

IMPORTANCE OF THE STUDY

• By “FINANCIAL PERFORMANCE ANALYSIS OF ICICI Bank” we

would be able to get a fair picture of the financial position of ICICI Bank.

• By showing the financial performance to various lenders and creditors it is

possible to get credit in easy terms if good financial condition is maintained
in the company with assets outweighing the liabilities.

• Protecting the property of the business.

• Compliances with legal requirement.

 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.

82
 lOMoARcPSD|233 514 48

 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 problemswhich 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:-

“TOMAKE A FINANCIAL ANALYSIS OF FINANCIAL

STATEMENTS 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:-

83
 lOMoARcPSD|233 514 48

✓ 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?
✓ 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 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
analyse 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.

84
 lOMoARcPSD|233 514 48

 Data Collection Method

85
 lOMoARcPSD|233 514 48

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.

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.

86
 lOMoARcPSD|233 514 48

4. Cash Flow Statement.

87
 lOMoARcPSD|233 514 48

❖ Limitations of study

▪ 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.
▪ Due to the limited time available at the disposable , the
study has been confined for a period of 5 years (2005-
2009).
▪ 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
.

88
 lOMoARcPSD|233 514 48

Chapter 4
FINANCIAL ANALYSIS

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

89
 lOMoARcPSD|233 514 48

which the accountant prepares at the end of an accounting period. The two statements are:
-

• The Balance Sheet

• Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet
mirrors the financial position on a particular date in terms of the structure of assets,
liabilities and owners equity, and so on and the Profit And Loss account shows the
results of operations during a certain period of time in terms of the revenues
obtained and the cost incurred during the year. Thus the financial statement
provides a summarized view of financial positions and operations of a firm.

Meaning Of Financial Analysis

The term financial analysis is also known as ‘analysis and interpretation of

financial statements’ refers to the process of determining financial strength and
weakness of the firm by establishing strategic relationship between the items of the
Balance Sheet, Profit and Loss account and other operative data.
The first task of financial analysis is to select the information relevant to the
decision under consideration to the total information contained in the financial
statement. The second step is to arrange the information in a way to highlight
significant relationship. The final step is interpretation and drawing of inference
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.

90
 lOMoARcPSD|233 514 48

▪ 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:-

 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.

 Types Of Financial Analysis

There are different ways of analysis the financial statements:

91
 lOMoARcPSD|233 514 48

1. On The Basis Of Process Of Analysis

92
 lOMoARcPSD|233 514 48

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 informations. 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

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

93
 lOMoARcPSD|233 514 48

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. Comparative financial statements

b. Common-size statements
c. Trend analysis
d. Ratio analysis
e. Funds flow analysis
f. Cash flow analysis
g. Break even point analysis

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

94
 lOMoARcPSD|233 514 48

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:

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.Compartative income statements facilitate the horizontal analysis since
each accounting variable is analysed 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

95
 lOMoARcPSD|233 514 48

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

96
 lOMoARcPSD|233 514 48

are expressed as percentage of the total. That is why it is known as

percentage balance sheet.
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 analysiss since each accounting
variable is analyzed vertically. One can draw conclusion, regarding the
behaviour 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.

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.”

97
 lOMoARcPSD|233 514 48

TYPES OF RATIOS

1. Proportion or Pure Ratio or Simple ratio.

2. Rate or so many Times.
3. Percentage
4. Fraction.

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
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.

98
 lOMoARcPSD|233 514 48

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

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 Turnover In Relation to Sales.
-Liquid Ratio Composite Ratio. Gross Profit Ratio.
(Acid) Test or -Debt. Equity Debtors Turnover Operating Ratio.
Quick Ratio. Ratio Ratio Operating Profit
-Absolute liquid or -Debt to Total Fixed Assets Ratio.
-Cash Ratio. Capital Ratio Turnover Ratio Net Profit Ratio.
-Debtors -Interest Total Asset Turnover Expenses Ratio
Turnover Ratio Coverage Ratio Ratio In relation to
-Creditors Turnover -Capital Gearing Working Capital investments
Ratio Ratio Turnover Ratio. Return on
-Inventory Turnover Payables Turnover Investments.
ratio Ratio Return on capital.
Capital Employed Return on Equity
Turnover Ratio Capital.
Return on total
Resources
Earning per share.
Price Earning Ratio.

99
 lOMoARcPSD|233 514 48

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.

100
 lOMoARcPSD|233 514 48

BALANCE SHEET OF ICICI BANK LTD.

As On Mar 2005,Mar 2006,Mar 2007,Mar2008,Mar2009. (Rs. In crores)
2005 2006 2007 2008 2009
CAPITAL
AND
LIABILITIES:
Total Share 1086.75 1239.83 1249.34 1462.68 1463.29
Capital
Equity Share 736.75 889.83 899.34 1112.68 1113.29
Capital
Share 0.02 0.00 0.00 0.00 0.00
Application
Money
Preference Share 350.00 350.00 350.00 350.00 350.00
Capital
Reserves 11813.20 21316.16 23413.92 45357.53 48419.73
Revaluation 0.00 0.00 0.00 0.00 0.00
Reserves
Net Worth 12899.97 22555.99 24663.26 46820.21 49883.02
Deposits 99818.78 165083.17 230510.19 244431.05 218347.82
Borrowings 33544.50 38521.91 51256.03 65648.43 67323.69
Total Debt 146263.25 226161.17 306429.48 356899.69 335554.53
Other Liabilities 21396.17 25227.88 38228.64 42895.39 43746.43
And Provisions
Total Liabilities 167659.42 251388.95 344658.12 399795.08 379300.96

ASSETS:
Cash And 6344.90 8934.37 18706.88 29377.53 17536.33
Balances With
RBI
Balances With 6585.07 8105.85 18414.45 8663.60 12430.23
Banks,Money At
Call
Advances 91405.15 146163.11 195865.60 225616.08 218310.85
Investments 50487.35 71547.39 91257.84 111454.34 103058.31
Gross Block 5525.65 5968.57 6298.56 7036.00 7443.71
Accumulated 1487.61 1987.85 2375.14 2927.11 3642.09
Depreciation
Net Fixed Assets 4038.04 3980.72 3923.42 4108.89 3801.62
Capital Work In 96.30 147.94 189.66 0.00 0.00
Progress
Other Assets 8702.59 12509.57 16300.26 20574.63 24163.62
Total Assets 167659.40 251388.95 344658.11 399795.07 379300.96

101
 lOMoARcPSD|233 514 48

Contingent 97507.79 119895.78 177054.18 371737.36 803991.92

liabilities
Bills for 9803.67 15025.21 22717.23 29377.55 36678.71
collection
Book 170.35 249.55 270.37 417.64 445.17
value(Rs.)
EPS 27.22 28.55 34.59 37.37 33.78
No. of 736716094 889823901 899266672 1112687495 1113250642
equity shares

102
 lOMoARcPSD|233 514 48

PROFIT AND LOSS ACCOUNT OF ICICI BANK LTD.

For The Year Ended Mar2005,Mar2006,Mar2007,Mar2008,Mar2009 (Rs. In Crores)
2005 2006 2007 2008 2009
INCOME:
Interest Earned 9409.90 13784.49 22994.29 30788.34 31092.55
Other Income 3416.14 4983.14 5929.17 8810.77 7603.72
Total Income 12826.04 18767.63 28923.46 39599.11 38696.27
EXPENDITURE:
Interest Expended 6570.89 9597.45 16358.50 23484.24 22725.93
Operating 3299.15 4479.51 6690.56 8154.18 7045.11
Expenses
Total Expenses 9870.04 14076.96 23049.06 31638.42 29771.04
Operating Profit 2956 4690.67 5874.40 7960.69 8925.23
Other Provision 428.80 1594.07 2226.36 2904.59 3808.26
And Contigencies
Provision For Tax 522 556.53 537.82 898.37 1358.84
Net Profit 2005.20 2540.07 3110.22 4157.73 3758.13
Extraordinary 0.00 0.00 0.00 0.00 (0.58)
Items
Profit B/F 53.09 188.22 293.44 998.27 2436.32

Total 2058.29 2728.29 3403.66 5156.00 6193.87

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

103
 lOMoARcPSD|233 514 48

FINANCIAL STATEMENT ANALYSIS

Comparative Balance Sheet Of ICICI Bank From 2005-2006 To

2008-2009
(Rs. in crores)
PARTICULARS 2005-2006 2006-2007 2007-2008 2008-2009
Absolute % of Absolute % of Absolute % of Absolute % of
change change change change change change change chang
e
CAPITAL
AND
LIABILITIES:
Capital 153.08 14 9.51 0.8 213.34 17 0.61 .04
Reserves and 9502.96 80 2097.76 10 21943.61 94 3062.2 7
surplus
Deposits 65264.39 65 65427.02 40 13920.86 6 (26083.23) (11)
Borrowings 4977.41 15 12734.12 33 14392.4 28 1675.26 2.5
Other Liabilities 3831.71 18 13000.76 51.5 4666.75 12 851.04 2
and Provisions

TOTAL CAPITAL 83729.55 50 93269.17 37 55136.96 16 (20494.12) (5.1)

AND LIABILITIES

ASSETS:
Investments 21060.04 42 19710.45 27.5 20196.5 22 (8396.03) (7.5)
Advances 54757.96 60 49702.49 34 29750.48 15 (7305.23 (3.25)
Fixed assets (57.32) (1.4) (57.3) (1.4) 185.47 5 (307.27) (7.5)
Capital Work In 51.64 54 41.72 28.2 (189.66) -100 0.00 0.00
Progress
Current assets 7917.23 37 23871.8 81 5194.17 10 (4485.58) (8)
TOTAL 83729.55 50 93269.16 37 55136.96 16 (20494.11) (5.1)
ASSETS:

104
 lOMoARcPSD|233 514 48

Interpretation
❖ The capital of bank increased by 14% in 2005-06,0.8% in
2006-07,17% in 2007-08,and .04 % in 2008-09.This shows
that there is fluctuation in the rate of increase in the capital. In
2005-06 and 2007-08 the rate of increase in capital is more
than that of 2006-07 and 2008-09.

Gaurav Narang 77
B.B.A

105
 lOMoARcPSD|233 514 48

❖ 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 2005-06 deposits increase by 65%,in 2006-07 it

increased by 40%,and an increase of 6% in 2007-08.in
2008-09 deposits fall by 11%.this shows that the bank
has repayed its deposits in this year.

❖ The borrowings are also showing a fluctuating rate of

increase.in 2008-08 the borrowings have increased at a
very low rate.this shows that bank has 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 2005-06,an

increase of 34% in 2006-07,15% increase in 2007-
08 and finally decresed by 3.25% in 2008-09.

❖ Thre has been a consistent decline in the fixed

assets over years.in 2005-06 and 2006-07 it
decreased by 1.4 %
,increased by 5% in 2007-08 and again decreasing by
7.5% in 2008-09.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 2005-06,rate of increase rose to
80% in 2006-07 and then the it increased at a much
lower rate i.e at 10%.this shows that the bank is
effectively ustilising its working capital.there is a fall
in current assets in 2008-09 by 8 %.this is mainly due
to the repayment of deposits in the years 2008-09.

106
 lOMoARcPSD|233 514 48

78

1. Comparative Income Statement Of ICICI Bank From

2005-2006 To 2008-2009
(Rs. in crores)
PARTICULARS 2005-2006 2006-2007 2007-2008 2008-2009
Absolute % of Absolute % of Absolute % of Absolute % of
change change change change change change change chan -
ge
INCOME:

Operating income 5941 46.3 10156 54.1 10676 37 (902.84) (2.3)

EXPENDITURE:

Interest expended 3026.56 46 6761.05 70.4 7125.74 43.5 (758.31) (3)

Operating 1180.36 36 2211.05 49.3 1463.62 22 (1109.07 (14)
expenses
Total expenses 4206.92 43 8972.1 64 8589.36 37.2 (1867.38) (5.9)
Operating profit 1734.67 59 1183.73 25.2 2086.29 35.5 964.54 12.1

Provision and 1199.8 126.1 613.58 28.5 1038.78 37.5 1364.14 36

contigencies
Net profit for the
year 534.87 27 570.15 22.4 1047.51 34 (399.6) (10)
Extraordinary
items 0.00 0.00 0.00 0.00 0.00 0.00 (0.58) 0.00
Profit brought
forward 135.13 254.5 105.22 56 704.83 21 1438.05 144

TOTAL PROFIT/ 670 32.55 675.37 25 1752.34 51.4 1037.87 20

(LOSS):

107
 lOMoARcPSD|233 514 48

Interpretation:-

❖ The net profit shows a fluctuating trend i.e it increased by 27% in 2005-06,22.4%
increase in 2006-07,and increased by 34% in 2007-08 and finally if falls by 10%
in2008-09.this may be due to decline in operating income and inresed tax liability
in the year 2008-09.

❖ The interest expenses from the period 2005 to 2008 showed an increasing trend
but decresed in 2008-09 due to repayment of borrowings.

79

108
 lOMoARcPSD|233 514 48

2. TREND ANALYSIS
Trend Percentage Of ICICI Bank From 2004-2005 To 2008-2009
(base year 2004 -05) Percentage(%) figures
Particulars 2005 2006 2007 2008 2009
Deposits 100 165 231 245 219
Advances 100 160 214 247 239
Net profit 100 127 155 207 187

Trend graph of ICICI Bank

300

250

200
percentage(%)

DEPOSITS
150 ADVANCES NET PROFIT
100

50

0
2005 2006 2007 2008 2009
Years

Interpretation:

 There is a continous increase in the deposits till the year ending 2008
followed by a downfall in the year ending 2009 due to repayment od
deposits in this year.
 Similarly advances also shows as increasing trend till the year ending 2008
followed by a slight downfall in the year ending 2009.
 There has been a substantial increase in net profit till the year year ending
2008.In four years it has been more than double.

The overall performance of the bank is satisfactory.

80

109
 lOMoARcPSD|233 514 48

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.

110