PROJECT ON ANALYSIS OF FINANCIAL STATEMENT OF ICICI BANK

Bachelor of Commerce [Banking & Insurance] Semester Vth (2011-2012)

Submitted In partial Fulfillment of the requirements For the award of degree of B.COM---Banking & Insurance By

Jayman Sharma

Tolani college of Commerce 150-151, Sher-E-Punjab Society, Guru Gobind Singh Road,Andheri(East), Mumbai-400093

CERTIFICATE

This is to certify that Ms. Jayman Sharma of B.com Banking & Insurance Semester Vth (2011-2012) has successfully completed the project on ANALYSIS OF FINANCIAL STATEMENT OF ICICI BANK Under the guidance of

Principal

Dr. Raju Chandnani

Course Co-ordinator ishtiyaq shaikh

Project Guide/Internal Examiner S. Kannan

External Examiner __________

DECLARATION

I Jayman Sharma the Student of B.com Banking & Insurance Semester Vth (2011-2012) hereby declared that I have completed the project on ANALYSIS OF FINANCIAL STATEMENT OF ICICI BANK

The Information Submitted is True & Original to the Best of my knowledge.

Signature of Student

Name of the Student JAYMAN SHARMA Seat No.

Acknowledgement

In preparing this project, I feel great pleasure because it gives me extensive practical knowledge in my career about Analysis of financial statement of ICICI Bank. I express my deep sense of gratitude to My Guide S Kannan for his valuable guidance during my project work. I would like to take this opportunity to express my gratitude towards all of them who have contributed directly or indirectly in my project work. I would like to first thank our principal Sir Dr. Raju Chandnani. I would like to take opportunity to express my gratitude to my God, Parents that have supported me and my friends who have helped me for my project work.

EXECUTIVE SUMMARY

The banking sector in India has become very much competitive in last few years with the increasing growth of private and public sector banks. Day by day the competition is most stringent and crucial.

I under took project in ICICI bank limited for profiling to understanding the banking operation and marketing its product.

ICICI bank was established in and is working with larger assets side in private sector banks. The quality of service is best among competitor. I concluded the survey to get the information regarding the new potential salary accounts and saving accounts relations and satisfactions level of existing salary accounts and saving accounts for cross sale of other products.

The satisfaction amount the existing salary accounts holders and the saving account holders of ICICI bank were revealed most of the aspects were at the satisfactory level. A majority was satisfied with the facility provided, services, products, working hours, communication process and technology. Regarding some factor, customer wants some modification in the provided facilities so they can give suggestions to make them according to their expectations. I would help the bank to identify the satisfaction level of existing relations and try to cross sale the other products and services.

SR 1 2

INDEX INTRODUCTION OF ICICI BANK BANK HISTORY

3 BOARD OF DIRECTORS AND COMMITTEES 4 5 6 7 8 9 10 11 12 13 INTRODUCTION OF ORGANIZATION RISK MANAGEMENT PRODUCTS AND SERVICES OBJECTIVES FACTS AND FINDINGS ANALYSIS SWOT ANALYSIS CONCLUSION SUGGESTION BIBLIOGRAPHY

INTRODUCTION OF ICICI BANK

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby

becoming the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an all-stock amalgamation. Later in the year and the next fiscal year, the bank made secondary market sales to institutional investors.

With a change in the corporate structure and the budding competition in the Indian Banking industry, the management of both ICICI and ICICI Bank were of the opinion that a merger between the two entities would prove to be an essential step. It was in 2001 that the Boards of Directors of ICICI and ICICI Bank sanctioned the amalgamation of ICICI and two of its whollyowned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. In the following year, the merger was approved by its shareholders,

Present Scenario:-

ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited. Overseas, its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As of December 31, 2010, ICICI is India's second-largest bank, boasting an asset value of Rs. 3,744.10 billion and profit after tax Rs. 30.14 billion, for the nine months, that ended on December 31, 2010.

Branches & ATMs:ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has 2,533 branches and about 6,800 ATMs. Talking about foreign countries, ICICI Bank has made its presence felt in 19 countries - United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The Bank proudly holds its subsidiaries in the United Kingdom, Russia and Canada out of which, the UK subsidiary has established branches in Belgium and Germany.

PRODUCTS & SERVICES

Personal Banking
y y y y y y y

Deposits Loans Cards Investments Insurance Demat Services Wealth Management

NRI Banking
y y y y y y

Money Transfer Bank Accounts Investments Property Solutions Insurance Loans

Business Banking
y y y y y

Corporate Net Banking Cash Management Trade Services FX Online SME Services

BANK OVERVIEW:-

ICICI Bank is India's second-largest bank and largest private sector bank, with total assets of EUR 46.1 billion for the quarter ending 30 June, 2006. Currently, ICICI Bank has a network of approximately 630 branches and extension counters, along with 2,325 ATMs. The bank offers a wide range of banking products and financial services to its corporate and retail customers through a variety of delivery channels and specialized subsidiaries. Its services include

Investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank, originally promoted in 1994 by ICICI Limited (an Indian financial institution), was the latters wholly-owned subsidiary. ICICI Ltd merged into ICICI Bank in 2002. The equity shares of ICICI Bank are listed in India

The Bombay Stock Exchange and the National Stock Exchange of India Limited, and its American Depositary Receipts are listed on the New York Stock Exchange. ICICI Bank set up the International Banking Group (IBG) in 2002 to implement a focused strategy for its international banking business. ICICI Bank is currently present in 14 worldwide locations through subsidiaries in the United Kingdom, Canada and Russia, and branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai. It has representative offices in the United States.

MERGER OF ICICI WITH ICICI BANK:-

ICICI Bank and ICICI, along with other ICICI group companies, were operating as a virtual universal bank, offering a wide range of financial products and services. The merger of ICICI and two of its subsidiaries with ICICI Bank has combined two organizations with complementary strengths and products and similar processes and operating architecture.

The merger has combined the large capital base of ICICI with the strong deposit raising capability of ICICI Bank, giving ICICI Bank improved ability to increase its market share in banking fees and commissions, while lowering the overall cost of funding through access to lower-cost retail deposits. ICICI Bank would now be able to fully leverage the strong corporate relationships that ICICI has built, seamlessly providing the whole range of financial products and services to corporate clients.

The merger has also resulted in the integration of the retail finance operations of ICICI, and its two merging subsidiaries, and ICICI Bank into one entity, creating an optimal structure for the retail business and allowing the full range of asset and liability products to be offered to all retail customers. The share exchange ratio approved for the merger was one fully paid-up equity share of ICICI Bank for two fully paid-up equity shares of ICICI.

BANK HISTORY:ICICI Group offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized group companies, subsidiaries and affiliates in the areas of personal banking, investment banking, life and general insurance, venture capital and asset management. With a strong customer focus, the ICICI Group Companies have maintained and enhanced their leadership position in their respective sector ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank has a network of 1,451 branches and about 4,721 ATMs in India and presence in 18 countries.

ICICI Prudential Life Insurance :Company is a 74:26 joint venture with Prudential plc (UK). It is the largest private sector life insurance company offering a comprehensive suite of life, health and pensions products. It is also the pioneer in launching innovative health care products like Diabetes Care Active and health Saver. The company operates on a multi-channel platform and has a distribution strength of over 2,76,000 financial advisors operating from more than 2000 branches spread across 1800 locations across the country. In addition to the Agency force, it also has tie-ups with various banks, corporate agents and brokers. In fiscal 2009, ICICI Prudential attained a market share of 10.9% based on retail weighted premium and garnered a total premium of Rs 153.56 billion registering a growth of 13% and held assets of Rs. 327.88 billion as on March 31, 2009.

ICICI Lombard General Insurance Company:A joint venture with the Canada based Fairfax Financial Holdings, is the largest private sector general insurance company. It has a comprehensive product portfolio catering to all corporate and retail insurance needs and is present in over 300 locations across the country. ICICI Lombard General Insurance has achieved a market share of 27.2% among private sector general insurance companies and an overall market share of 11.2% during fiscal 2009. The gross return premium grew by 2.2% from Rs. 33.45 billion in fiscal 2008 to 34.20 billion in fiscal 2009.

ICICI Securities Ltd :is the largest equity house in the country providing end-to-end solutions (including web-based services) through the largest non-banking distribution channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations - Corporate Finance including Equity Capital Markets Advisory Services, Institutional Equities, Retail and Financial Product Distribution.

ICICI Securities Primary Dealership:Limited is the largest Primary Dealer in Government Securities. It is an acknowledged leader in the Indian fixed income and money markets, with a strong franchise across the spectrum of interest rate products and services institutional sales and trading, resource mobilisation, portfolio management services and research. One of the first entities to be granted Primary Dealership license by RBI, I-Sec PD has made pioneering contributions since inception to debt market development in India. I-Sec PD is also credited with pioneering debt market research in India. I-Sec PD has been recognised as the 'Best Domestic Bond House in India' by Asiamoney every year from 2002 to 2007 and selected as 'Best Bond House' by Financeasia.com for the years - 2001, 2004 to 2007 and 2009."

ICICI Prudential Asset Management:is the third largest mutual fund with average asset under management of Rs. 514.33 billion and a market share of 10.43% as on March 31, 2009. The Company manages a comprehensive range of mutual fund schemes and portfolio management services to meet the varying investment needs of its investors through162 branches and 185 CAMS official point of transaction acceptance spread across the country.

BOARD OF DIRECTORS:-

MR. K. V. KAMATH (MANAGING DIRECTOR & CEO) MR. HANDRA KOCHHAR (JOINT MANAGING DIRECT.) MR. V.VAIDYANATHAN (EXECUTIVE DIRECTOR) MS. MADHABUI PURI-BUCH,(EXECUTIVE DIRECTOR) MR. SONJOY CHATTERJEE (EXECUTIVE DIRECTOR) MR. N. VAGHUL MR.SRIDAR IYENGAR MR. AKSHMI N. MITTAL MR NARENDRA MURKMBI MR. ANUPAM PURI MR. ARUN RAMANATHAN MR. M K SHARMA MR. P.M. SHINA MR. T.S. VIJAYAN MR. PREM WASTA

BOARD OF COMMITTEES:-

AUDIT COMMITTEE

Mr. Sridar Iyengar Mr. Narendra Murkumbi Mr. M K Sharma

BOARD GOVERNANCE

Mr. N Vghul Mr. Anupam puri Mr. M. K. Sharma Mr. P.M.Shina

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SERVICE COMMITTEE Mr. N. Vaghul Mr. Narendra Mukhambi Mr. M.K Sharma

COMMITTEE OF DIRECTORS

Mr. Madhabi Puri- Buch Mr. sonjor Chatterjee Ms. Chanda D. Kochhar Mr. R. Vaidyanathan

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INTRODUCTION OF ORGANISATION:ORGANISATIONAL STRUCTURE OF ICICI BANK:We believe that the structure of an organization needs to be dynamic, constantly evolving and responsive to changes both in the external and internal environments. Our organizational structure is designed to support our business goals, and is flexible while at the same time ensuring effective control and supervision and consistency in standards across business groups. The organization structure is divided into five principal groups Retail Banking, Wholesale Banking, Project Finance & Special Assets

Management, International Business and Corporate Centre.

The Retail Banking Group comprises ICICI Banks retail assets business including various retail credit products, retail liabilities (including our own deposit accounts as well as distribution of third part liability products) and rural micro-banking. The Wholesale Banking Group comprises ICICI Banks corporate banking business including credit products and banking services, with separate dedicated groups for large corporate, Government and public sector entities and emerging corporate. Treasury, structured finance and credit portfolio management also form part of this group.

ICICI BANK Retail Banking Wholesale Banking Project Finance & Special Assets Management International Business Corporate Centre

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BUSINESS REVIEW:Retail Banking

The retail business is the key driver of ICICI Banks growth strategy, with the objective of diversifying the asset portfolio and building a low-cost stable resource base. With a complete product suite across both asset and liability products as well as a wide range of banking services, ICICI Bank is today a retail financial supermarket with the ability to cross-sell the entire range of credit and investment products and other banking services to our customers. The key dimensions of our retail strategy are products, channels and processes, underpinned by a strong customer focus. Changing demographics and the trend towards upward migration in income levels coupled with existing low retail credit penetration levels have created a major growth opportunity in retail finance.

ICICI Banks retail assets business is capitalizing on this opportunity with a competitive positioning and strategy comprising innovative products, wide distribution, strong credit controls and high customer service standards and rapidly growing volumes in each segment to achieve economies of scale. ICICI Banks retail portfolio (including the portfolio of ICICI Home Finance Company Limited, its wholly-owned subsidiary) at March 31, 2002 was over Rs. 76.00 billion, as compared to the combined retail portfolio of ICICI and ICICI Bank of about Rs. 29.00 billion at March 31, 2001. Our retail asset products include mortgages, automobile and two-wheeler loans,

commercialvehicles and construction equipment financing, consumer durable loans, personal loans and credit card.

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Corporate Banking
ICICI Banks corporate banking strategy is based on providing customized financial solutions to clients, tailored to meet their specific requirements. The corporate banking strategy focuses on careful management of credit risk and adequate return on risk capital through risk-based pricing and proactive portfolio management, rapid growth in fee-based services and extensive use of technology to deliver high levels of customer satisfaction in a cost effective manner. Our focus in fiscal 2002 was on expanding the range and depth of our corporate relationships, acquiring new clients and cross-selling all our corporate banking products and services to the existing client base. We continued to focus on working capital finance for highly-rated clients, structured transactions and channel financing. In longer-term loans, in the absence of traditional capital expenditure financing opportunities and limited corporate-credit growth,

ICICI Bank has taken advantage of emerging opportunities in the public sector disinvestment process, through structuring and advisory services. We focused strongly on transaction banking services such as cash management and non-fund-based facilities such as letters of credit and bank guarantees to increase our market share in banking fees and commissions. We have already achieved significant success in cash management services, with total volumes of Rs. 1.72 trillion for fiscal 2002. We also targeted high value current accounts to reduce our cost of funding. We implemented a customerlevel profitability-based pricing model. As the pioneers of securitization in India, we were successful in creating a market for securitized corporate debt, which would help to expand and deepen the debt markets.

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Project Finance and Special Assets:Our project finance activities include financing new projects as well as capacity additions in the manufacturing sector and structured finance to the infrastructure and oil, gas and petrochemicals sectors. Over the years, we have developed considerable expertise in financing complex project finance transactions and effectively allocating the associated risks. Our presence has been viewed by most sponsors as critical to the success of their projects, on account of our proficiency in developing enforceable contract models, syndicating requisite funds and working out complex issues related to Government regulations. Our project finance business is focused on structuring and syndication of financing for large projects by leveraging our expertise in project financing, and churning our project finance portfolio to prevent portfolio concentration and to manage portfolio risk. We view our role not only as providers of project finance but as arrangers and facilitators, creating appropriate financing structures that may serve as financing and investment vehicles for a wider range of market participants.

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Special Assets Management:Liberalization and integration with the global economy have posed major competitive challenges for Indian industry. Cyclical downturns in commodity demand and prices have adversely affected the performance of several sectors. This has impacted asset quality in the financial system. ICICI Banks efforts at asset resolution are driven by the Special Assets Management Group (SAMG), set up to manage large non-performing loans and large accounts under watch that require close monitoring. In case of exposures to essentially viable companies. SAMGs approach includes operational and financial restructuring, completion of projects under implementation, sale of unproductive assets and catalyzing consolidation. In respect of exposures to unviable and essentially uneconomical projects, we adopt an aggressive approach aimed at out-of-court settlements, enforcing collateral and driving consolidation. The accent is on time-value of recovery and a pragmatic approach towards settlements. During fiscal 2002, SAMG was strengthened by the induction of some of our highest-rated performers into the group.

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International Business
We have already established a presence in the international markets, primarily in the areas of information technology, investment banking and banking products and services for the Non-Resident Indian (NRI) community. We believe that the international markets present a major growth opportunity and have therefore expanded the range of our international business initiatives. The International Business Group was set up in fiscal 2002 to develop and implement a focused strategy for the international business.

The international business strategy is based on leveraging home country links for international expansion by capturing market share in select international markets. The critical strengths, which can be leveraged to create value, include strong relationships with domestic corporates, preferential access to local currency markets, strong domestic distribution network and cultural ties with the home country. The initial focus areas would be supporting Indian companies in raising corporate and project finance for their investments abroad, trade finance, personal financial services for NRIs and international alliances to support domestic businesses

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RISK MANAGEMENT:Risk is an integral part of the banking business. The delivery of superior shareholder value depends on achieving an appropriate trade-off between risk and returns. ICICI Bank is exposed to specific risks that are particular to its businesses and the environment within which it operates, including credit risk, market risk and operational risk. Our risk management strategy is based on a clear understanding of various risks, disciplined risk assessment and measurement procedures and continuous monitoring. The policies and procedures established for this purpose are continuously benchmarked with international best practices. The Risk, Compliance & Audit Group is responsible for assessment, management and mitigation of risk in ICICI Bank. This group forms part of the Corporate Centre, is completely independent of all business operations and is accountable to the Audit Committee of the Board of Directors. The group is organized into six subgroups: Credit Risk Rating & Industry Analysis, Credit Policies & Credit Audit, Risk Analytics, Internal Audit, Subsidiaries Audit and Retail Risk.

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Credit Risk
Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender, ICICI Bank. ICICI Bank measures, monitors and manages credit risk for each borrower and also at the portfolio level. ICICI Bank has a standardized credit approval process, which includes a wellestablished procedure of comprehensive credit appraisal and rating. The credit rating for every borrower is reviewed at least annually and for higher risk credits and large exposures typically on a quarterly basis. ICICI Bank also reviews the ratings of all borrowers in a particular industry, upon the occurrence of any significant event impacting the industry.

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Market Risk
Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates, equity prices and commodity prices. ICICI Banks market risk arises principally from interest-rate risk. ICICI Banks exposure to market risk is a function of its asset and liability management activities, trading activities and its role as a financial intermediary in customer-related transactions. The objective of market risk management is to effectively manage exposure of earnings and equity to losses and to reduce the volatility inherent in financial instruments. Interest-rate risk is measured through the use of re-pricing gap analysis and duration analysis.

Market risk is managed within an overall asset-liability framework approved by the Asset- Liability Management Committee (ALCO) of the Board of Directors. Its role encompasses stipulating liquidity and interest-rate risk limits, monitoring market-risk levels by adherence to set limits, articulating the organizations interest rate view and determining business strategy, in the light of the current and expected business environment. ICICI Bank proactively manages market risk through the re-pricing profile of incremental assets and liabilities and also uses the rupee interest rate derivatives market in India, to the extent feasible, to actively manage asset and liability positions. ICICI Bank ensures adequate liquidity at all times through systematic funds planning and maintenance of liquid investments, as well as by focusing on more stable funding sources such as retail deposits. The Risk, Compliance & Audit Group formulates market risk management policy and monitors market risk on an ongoing basis. The asset-liability management group reporting to the Chief Financial Officer (CFO) monitors the asset-liability position under the supervision of the ALCO.
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Operational Risk

ICICI Bank is exposed to many types of operational risk. Operational risk can result from a variety of factors, including failure to obtain proper internal authorizations, improperly documented transactions, failure of operational and information security procedures, computer systems, software or equipment, fraud, inadequate training and employee errors. We attempt to mitigate operational risk by maintaining a comprehensive system of internal controls, establishing systems and procedures to monitor transactions, maintaining key back-up procedures and undertaking regular contingency planning. The Middle Office group monitors adherence to credit procedures. The Internal Audit group undertakes a comprehensive audit of all business groups and other functions, in accordance with a risk-based audit plan. This plan allocates audit resources based on an assessment of the operational risks in the various businesses. The Audit Department conceptualizes and implements improved systems of internal controls, to minimize operational risk.

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PRODUCTS AND SERVICES:BANKING ACCOUNT

ICICI bank offers a wide range of banking account such as current, saving, life plus, senior recurring deposit, young stars, salary account etc. tailor made for every customer segments, from chaildran to senior citizen. Convenience and case to access are the Benefit of icici bank account.

CURRENT ACCOUNT:-

Basically a current account is opened for artificially created entity. This artificially created entity can be a firm, sole proprietorship, association, partnership or anything else. Interest is also paid on the current account.

Tools for opening of the Current accounts

Walk in: - There was a huge number of walk in customers in KMB, we use to open their current accounts

References: - References were being collected from the leads which we were having and from other sources like Chartered Accountants, Relatives, Friends etc.

Cold Calls: - This refers to the telephonic call, which we use to make; we use to take appointment before approaching the person.

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SAVINGS ACCOUNT:ICICI bank savings account has been designed to offer you a valuable banking experience. Under savings accounts, bank offers various facility like Debit-cum-ATM card to withdraw cash from any ATM. Money Multiplier facility that enables the transfer of your idle money into a high interest savings account. Further there are Internet banking facility, 24-hour Customer Care service, Mobile banking, Standing instructions, Nomination facility and Bank@home facility that allows you to order cash deposits and withdrawals from home. The services include cash / cheques deposits and cash/DD/PO delivery at home, DD call and collect facility.

An ICICI Bank Savings Account offers you a valuable banking experience.

y y y y y

Debit-cum-ATM Card Money Multiplier Facility Internet Banking Customer Care Mobile Banking

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INSURANCE OF ICICI BANK:Icici group offers a range of insurance product to cover varying needs ranging from life, pensions and health to home, motor and travel insurance the product are made accessible to customers through a wide network of advisors banking partners. Corporate agent and brokers with the added convenience of being able to buy online.

ICICI insurance policy helps you find the assurance of a financial security in times of absolute need. ICICI insurance policies provide you the peace of mind that comes as a free gift with any insurance plan or scheme. ICICI insurance policies cover:
y y y y y y

Health Insurance Overseas Travel Insurance Student Medical Insurance Vehicle (Car or Two-Wheeler) Insurance Home Insurance Life Insurance

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LOANS IN ICICI BANK:Icici bank offers a range of deposits solution to meet varying needs at every stage of life. It offers a range of tenure and other features to suit all requirements.

HOME LOAN ICICI Bank Home Loans, offer unbeatable benefits to ensure that you get the best deal without any hassles.

As one of the leading home loan provider, ICICI Bank understands how special building a new home is for you and our Home Loan help you lay the foundation for your dream home.

ICICI offers you the most convenient home loan plans to suit your needs. With so many attractive features in every type of home loan we offer, creating the home you always wanted is no longer a distant dream. Some of our key benefits are:
y y y y y y

Guidance throughout the process Home loan amounts suited to your needs Home Loan tenure up to 20 years Simplified Documentation Doorstep Service Attractive interest rates
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PERSONAL LOAN:There is some emergency and you need ready funds immediately ICICI bank provides you personal loan for all your financial needs. Bank offers loan at attractive interest rate with 12-60 months repayment options, faster processing. There is special offer for existing bank customers.

ICICI Bank personal loan can be used for any legitimate purpose. The extent of personal loan that one can get depends on one's income and repayment capacity. Repayment track record on existing home loan or car loan or personal loan or credit card helps a borrower to get better rates and higher amount.

Highlights of ICICI Bank personal loan Loan up to 15 laces. No security/guarantor required. 12-60 Months repayment options. Prepayment of the loan is possible after 180 days of availing. Part pre-payment is not allowed.

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VEHICLE LOAN:ICICI Bank offers car loans up to 90% of the ex-showroom price of the car. Loan tenure can be extended up to 6 years which makes it easier to repay. ICICI Bank is the top financier for car loans in India. The bank has a network of more than 1800 channel partners in more than 1000 locations.

Loan Amount

The loan amount depends on the car model. Minimum loan amount for a new car loan is Rs.1 lakh. For a used car the bank arranges finance for a maximum of 85% of the valuation of the car. Minimum loan amount sanctioned for a used car loan is Rs. 75000. For used cars the maximum tenure can be five years.

Interest Rates & Documents Required

Car Loans are available with Fixed and Floating Interest Rates. The amount of loan sanctioned depends on the strength of income related documents. On absence of income proof, loan could be sanctioned on producing the bank statement, loan repayment track record, etc. Income Proof has to be submitted for last two years. Prepayment of loan is allowed. However, one is not permitted to prepay in parts. ITR, Form 16, and Salary Slip can be submitted as the proof of income. One also has to submit proof of bank account continuity.
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CARDS ICICI BANK :CREDIT CARED ICICI Bank is the second-largest bank in India. With an extensive network of 950 branches and 3300 ATM's in India, ICICI Bank has an international presence in 17 countries. Among its highly accomplished banking and financial services are their credit cards. ICICI credit card is one of the toprated ones in India. With a wide range of offers, ICICI Bank credit cards come as:
     

Premium Cards Classic Cards Value For Money Cards Co Branded Cards Affinity Cards EMI Cards

Each ICICI Bank credit card comes with special offers; bill payment & balance transfer options and reward points. The bank also offers online application and credit card status check services through the ICICI Bank credit card website. For this, you just need to login by punching in your ICICI Bank credit card number and all services offered by ICICI Bank India including bill, payment, balance transfer, online statement and many more are available at your fingertips.

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DEBIT CARD:ICICI Bank Debit Card gives you the advantages of an ATM card and a credit card combined into a single card. The package deal includes forethought of Any Time Money services and the cashless spending facility of a credit card accepted widely. With ICICI Bank Debit Card, you can enjoy cashless shopping, traveling, dining or other leisure activities without having to carry sizeable cash. Whenever you swipe the ICICI ATM cum debit card, the amount is debited directly to your ICICI Bank account.

ICICI Bank Debit Cards are accepted at over 3.5 lakh merchant establishments across the country and 24 million shops across the globe with ATM compatibility at over 3000 ICICI Bank ATMs, 18000 VISA/ MasterCard ATM locations in India and over a million VISA ATMs globally. Your ICICI Bank Debit Card bears your signature that is duly matched by the merchandiser to the one on the bill slip you are supposed to sign-in while making payment through your card for any purchases you make.

In case of loss or theft of your ICICI Bank Debit Card, all you are required to do is report to the 24 x 7 Customer Care of ICICI Bank about the mishap. This way ICICI Bank protects you from any financial liability arising from any transaction made on the lost card from the time of reporting.
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TRAVEL CARD:ICICI Bank Travel Card is a pre-paid card that is available through payment in India currency (INR) and withdrawal in any local currency across the globe. ICICI Travel Cards have made travel abroad much more convenient. The available currencies include US Dollars ($), Australian Dollars, Canadian Dollars, Euros, Pound, Sterling, Swiss Francs and many more. Rest assured of the widest choices with ICICI Travelers Card.

Besides the currency exchange, other features of ICICI Travel Cards include Replacement Card that is provided free of cost within the travel kit to take care of certain emergencies while on trip. Get immediate access to your account balance and a statement online with SMS alerts of every transaction. You can also use your ICICI Travel Card for transactions over the Internet and shop at over 13 million merchant outlets accepting VISA Flag. ICICI Bank provides free travel insurance for personal accident and a 24 x 7 Customer Care Centre to answer all your queries.

For refunds of your travel card, you can contact any of your nearest ICICI Bank branches or Money changer by providing a copy of your ICICI Travel Card and passport along with duly filled Refund form. Similarly it can be easily reloaded for your next trip through the coupons that are provided in the starter kit. For the corporate travellers, they can Reload their ICICI Travel Card even while abroad. ICICI Bank can be trusted for prompt deactivation of the travel card and activation of replacement card on theft soon after notification with Zero Liability from the time of report.

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MOBILE BANKING:ICICI Bank Mobile Banking Service is a unique facility that enables you to access your bank account through your mobile. This facility is available to all ICICI Bank customers including account holders (deposit and demat), credit card holders or loan customers. The ICICI mobile banking consists of alert facility that includes prompt updates of significant transactions through or into your ICICI Bank account and request facility that allows you to request for information of your ICICI Bank account, a new Cheque Book, Demand Draft or Pay Order. A new now available as a privilege to the ICICI Bank customers is the ICICI Bank iMobile service that allows you to transfer funds to ICICI and also to Non-ICICI Bank accounts through your mobile phone. You can also pay your utility bills, get recharge to your mobile prepaid connections and pay insurance premiums through ICICI Bank .

ICICI phone banking service has been extended beyond India to ICICI bank's international locations. Special telephone numbers for NRI's are also available. Below we give you ICICI phone banking numbers for major cities and NRI and international services.

24 Hour Customer Care Numbers: Bangalore: 41131877 Chennai: 42088000 Delhi: 41718000, 9818178000 Hyderabad: 23128000 Kolkata: 9831378000 Mumbai: 28307777 Pune: 9890478000

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INVESTMENT PRODUCTS :Along with deposit product and loan offering, icici bank assist you to manage its. Fianc by providing various investment option ranging from icici bank tax saving bands to quit investment through initial public offer and investment in pure gold icici bank facilitates foiling investment.  Icici Bank Tax Saving Bounds.  Government of India bonds.  Investment on mutual funds.  Initial Public Offer by corporate  Investments in Gelds.  Foreign Exchange Services  Senior Citizen Saving Scheme, 2004 MUTUAL FUNDS

ICICI Bank Mutual Funds are available in multiple forms with options of creating your own investment portfolio with the help of professionals. The ICICI Bank investment managers help you analyze your risk potential and then decide upon the mutual funds depending upon the net asset value (nav) of various schemes.

Your money invested in ICICI Mutual Funds are used to buy securities of diverse nature, which are carefully selected by finance specialists. Diversification of you money in several types of bonds and securities ensure maximum gain even when the market is showing trends of slowdown. Profits generated through such investment are then passed on to the investors.

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TAX SAVING SOLOUTION:ICICI Tax Saving Plans offer you investment opportunities through which you can save a large amount of your hard earned income from going away as taxes. ICICI Bank provides easy tax saving options that include tax saving bonds, tax saving fixed deposits and other investments.

ICICI Tax Saving Plans are simple investment solutions that help you invest your surplus money into some kind of bonds, deposits or other schemes so that you get tax redemption under the income tax act and thereby save your money from slipping into the tax collector's hand.

GOLD INVESTMENT:-

ICICI Gold Investment Opportunities include investments in Pure Gold, Mutual Funds and Bonds that help you in obtaining certain tax benefits as well as yield you high returns on maturity of the equity investments.

ICICI Bank Pure Gold ICICI Bank Pure Gold is available in select ICICI bank branches in the denominations of 2.5 g, 5 g, 8 g, 20 g, and 50 g. the biggest assurance of ICICI pure gold is the reliability of its pureness. All ICICI pure gold is 24Carat imported from Switzerland with a 99.99% Assay Certification of highest purity levels as per the international standards. Besides this, ICICI Bank also offers gold schemes where in you have mutual funds and bonds to invest that yield sizeable return.

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OBJECTIVE OF STUDY
The main objectives of this project are the following:- To study about icici bank and its related aspect like its products & services, history, organizational structure, subsidiary companies.  To analysis the financial statement, i.e. profit and loss account and balance sheet of ICICI bank

 To learn about profit and loss account, balance sheet and different types or assets & liabilities

 To understanding the meaning and need of balance sheet and profit and loss account.  To purpose is to portray the financial position of the financial position of icici bank with the help of balance sheet and profit and loss account.  To evaluate the financial soundness, stability and liquidity of icici bank.

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FACTS & FINDINGS:-Management Discussion & Analysis: Indias' largest private sector bank in market capitalization and second largest overall in terms of assets. Bank has total assets of about USD 100 billion, a network of over 2,533 branches, 22 regional offices and 49 regional processing centers, about 6,800 ATMs , and 24 million customers. 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. ICICI Bank is also the largest issuer of credit cards in India. .

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 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.

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Finance Ministry backs ICICI Bank :The government on Friday said there is no problem with the leading private sector lender ICICI Bank, shares of which tumbled more than 20 per cent in the early trade, while the bank asserted it had adequate rupee liquidity. "We do not see any problem with the ICICI Bank," said a senior Finance Ministry official, adding all Indian banks are well-capitalised and wellregulated He added the Capital Adequacy Ratio of each bank is above 10 per cent, well above the regulatory requirement of nine per cent. ICICI Bank at 3-year low y The ICICI Bank stock is down 37.47% from its recent high of Rs 551.45 on 1 October 2008. y Meanwhile, the BSE Sensex was down 957.96 points, or 8.54%, to 10360.40. The market tumbled on worries about a global recession despite worldwide central bank measures to stave off a crisis. y On BSE, 44.59 lakh shares were traded in the counter. The scrip had an average daily volume of 24.24 lakh shares in the past one quarter. y The stock hit an intraday low of Rs 351.65, its lowest level in more than three years. It hit an intraday high of Rs 423.70 so far. The stock had a 52-week high of Rs 1465 on 14 January 2008. y The stock had underperformed the market over the past one month till 8 October 2008, declining 37.08% as compared to the Sensex decline of 24.20%. It had also underperformed the market in the past one quarter, falling 23.63% as compared to the Sensex decline of 15.14%.

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y Indias largest private sector bank by market capitalisation has an equity capital of Rs 1113.23 crore. Face value per share is Rs 10. y The current price of Rs 344.80 discounts its Q1 June 2008 annualised EPS of Rs 26.16, by a PE multiple of 13.18.

y The bank had earlier on 1 October 2008 assured investors that it was well-capitalised. y ICICI Bank had said on 16 September 2008 it held 57 million Euros ($81 million) of senior bonds issued by Lehman Brothers, and would increase its provision on the debt by about $28 million to cover half of that exposure. The bank had also later clarified that 98% of ICICI Bank UK PLC's non-India investment book is rated investment grade and above.

y ICICI Bank UK PLC has zero exposure to US subprime-credit, it had added in an announcement made on 29 September 2008.

y ICICI Bank chief K V Kamath had on 30 September 2008 also issued a statement on the bank's financial health and said that the bank has a very strong capital position with a capital adequacy ratio of 13.4% as against the statutory requirements of 9%.

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y ICICI Bank's net profit fell 6.1% to Rs 728.01 crore on a 1.6% rise in operating income to Rs 9429.98 crore in Q1 June 2008 over Q1 June 2007.

y ICICI Bank provides retail-banking, corporate banking, cash management and treasury management services.

ICICI Bank facing no liquidity crisis: Chanda Kochhar y ICICI Bank is facing no liquidity crisis and has as much as Rs 12,000 crore liquidity even in international markets and the bank does not use rupee liquidity to find the growth of its international operations, according to ICICI Bank Joint Managing Director and CFO Chanda Kochhar.

y Stepping in to clarify rumours that have lead to a near 26 per cent dip in the ICICI Bank stocks on Friday, Kochhar said: We have no sizable international investments and the ones that are present are in the form of international loans to Indian companies to fund their international operations. As far as the UK subsidiary is concerned, yes we have investments but the exposure is very small for a company with a networth of Rs 47,000 crore.

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COMPRATIVE INCOME STATEMENT TREND ANALIYSIS SUMMARISED PROFIT & LOSS ACCOUNT (ON 31 MARCH, 2011)

* Profit before tax for the year ended March 31, 2011 FY2010 was Rs. 5,117 crore (US$ 1,009 million), compared to Rs. 5,056 crore (US$ 997 million) for the year ended March 31, 2010 (FY2010) .

Profit after tax for FY2011 was Rs. 3,758 crore (US$ 741 million) compared to Rs. 4,158 crore (US$ 820 million) for FY2009 due to the higher effective tax rate on account of lower proportion of income taxable as dividends and capital gains.

Net interest income increased 15% from Rs. 7,304 crore (US$ 1,440 million) for FY2010 to Rs. 8,367 crore (US$ 1,650 million) for FY2011. While the advances declined marginally year-on-year, the net interest income increased due to improvement in net interest margin from 2.2% in FY2010 to 2.4% in FY2011.

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PERIOD ENDING Total Revenue Cost of Revenue Gross Profit

31-Mar-2011 31-Mar-2010

31-Mar2009

13,812,021 13,275,370 -

12,644,738 3,522,385 8,944,693

Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss 8,057,841 6,951,141 7,579,279 1,915,963 6,757,940 407,749 2,969,392

Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops (50438) 1,366,357 (789,124) 5,886,799 1,589,655 666,093 2.31348 38933 705,026

5,754,179
1,416,794 -

5,696,091
1,078,832 (38561) 1,040,271

Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 1,366,357 1,366,357 1,040,271 1,040,271 705,026 705,026 40

Profit & loss account:y Profit before tax increased 31% to Rs. 1,205 crore (US$ 252 million) for the quarter ended June 30, 2011) from Rs. 922 crore (US$ 192 million) for the quarter ended June 30, 2009 (Q1-2011).

y Profit after tax increased 21% to Rs. 878 crore (US$ 183 million) for 2011 from Rs. 728 crore (US$ 152 million)

y The net interest margin was maintained at 2.4%. Net interest income for 2011 was Rs. 1,985 crore (US$ 414 million) compared to Rs. 2,090 crore (US$ 436 million).The decrease in net interest income was mainly due to the decrease in advances by 11.6%.

y The Bank earned treasury income of Rs. 714 crore (US$ 149 million) in 2011. The Bank positioned its treasury strategy to benefit from the opportunities in equity and fixed income markets during the quarter.

y Fee income for 2011 at Rs. 1,319 crore (US$ 275 million) was maintained at about the same level as for the quarter ended March 31, 2011. The lower level of fee income compared to 2011 was due to reduced investment and mergers & acquisition activity in the corporate sector and lower level of fees from distribution of retail financial products, reflecting the continued impact of the adverse global economic conditions on the operating environment
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COMPRATIVE FINANCIAL STATEMENT TREND ANALIYSIS SUMMARISED BALANCE- SHEET (ON 31 MARCH, 2011)

During the year, the Bank has pursued a strategy of prioritizing capital conservation, liquidity management and risk containment given the challenging economic environment. This is reflected in the Bank's strong capital adequacy and its focus on reducing its wholesale term deposit base and increasing its CASA ratio. The Bank is maintaining excess liquidity on an ongoing basis. The Bank has also placed strong emphasis on efficiency improvement and cost rationalization. The Bank continues to invest in expansion of its branch network to enhance its deposit franchise and create an integrated distribution network for both asset and liability products. In line with the above strategy, the total deposits of

the Bank were Rs. 218,348 crore (US$ 43.0 billion) at March 31, 2011, compared to Rs. 244,431 crore (US$ 48.2 billion) at March 31, 2010. The reduction in term deposits by Rs. 24,970 crore (US$ 4.9 billion) was primarily due to the Bank's conscious strategy of paying off wholesale deposits. During Q4-2010, total deposits increased by Rs. 9,283 crore (US$ 1.8 billion), of which Rs. 5,286 crore (US$ 1.0 billion), or about 57%, was in the form of CASA deposits. The CASA ratio improved to 28.7% of total deposits at March 31,march 2011

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PERIOD ENDING Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill Total Liabilities |

31-Mar-2011

31-Mar-2010 31-Mar-2009

4,761,522 4,070,245 47,012,620 1,230,978 62,616,947 11,969,2312

6,203,425 4,297,548 41,501,233 860295 56,135,672 10,899,8172

3,523,297 3,387,393 1093513 2,919,274 8,86461 32673 58,150,216 7,66839 95,139,641

28,218,155 58,102,030 20,666,506 3,04568 107,291,259

25,770,870 53,808,285 17,710,162 2,82972 97,572,290

22,876,979 51,612,448 19,043,242 11,250,778 1,79463 85,919,668

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Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity 2,58285 12,142,768 2,48333 11,177,550 2,19432 90,00541

Total Stockholder Equity Net Tangible Assets View: Annual Data

12,401,053 12,401,053

11,425,883 11,425,883

92,19973 92,19973

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RATIO ANAlYSIS OF ICICI BANK (2010-2011) :-

Ratio Analysis As on Profitablility Interest Income/Total Income (%) Non Interest Income/Total Income (%) Reported Net Profit/Total Income (%) Net Interest Income/Total Income (%) Net Interest Margin (%) Return Related ROE (%) ROA (%) Leverage & Capital Measures Customer loans/deposits (%) Investments/Deposits (%) Total Liabilities/Networth Growth (%) Growth in Interest Income Growth in Interest Expenses Growth in Employee cost Growth in PAT Growth in Deposits Growth in Borrowings Per Share Book Value Per Share (Rs) Earnings Per Share (Rs) Dividend Per Share (Rs) 31-Mar11 77.50 22.50 12.10 24.50 4.50 7.80 1.10 89.70 59.80 7.00 ---7.10 -1.19 463.00 36.10 12.00 31-Mar2010 80.40 19.60 9.70 21.60 3.80 7.50 1.00 100.00 47.20 7.70 0.99 ----2.55 444.90 33.80 11.00 31-Mar2009 77.80 22.20 10.50 18.40 3.20 8.90 1.00 92.30 45.60 8.60 39.98 43.56 28.59 33.68 6.04 28.08 417.50 37.40 11.00

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Analysis and Interpretation;-Study of Profit and loss account. Meaning It is a financial statement, which shows net profit & loss of a company for a specified period. The accounting year means calendar year 12 months or less or more then 12 months. Parts of the Profit and Loss Account The Profit & Loss Account aims to monitor profit. It has three parts. 1) The Trading Account. This records the money in (revenue) and out (costs) of the business as a result of the business trading ie buying and selling. This might be buying raw materials and selling finished goods; it might be buying goods wholesale and selling them retail. The figure at the end of this section is the Gross Profit.

2) The Profit and Loss Account. This starts with the Gross Profit and adds to it any further costs and revenues, including overheads. These further costs and revenues are from any other activities not directly related to trading. An example is income received from investments. 3) The Appropriation Account. This shows how the profit is appropriated or divided between the three uses mentioned above.
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Profit and Loss Account:An example profit and loss account is provided below:

Revenue Cost of Sales

12,500 7,500

10,000 6,000

Gross Profit Gross profit margin (gross profit / revenue)

5,000 40%

4,000 40%

Operating Costs Sales and distribution Finance and administration Other overheads Total Operating Costs 1,260 570 970 3,035 1,010 555 895 2,670

Operating Profit (gross profit less operating costs) Operating profit margin (operating profit / revenue)

1,965

1,330

15.7% 13.3%

Interest

(450)

(475)

Profit before Tax

1,515

855

Taxation

(455)

(255)

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STUDY OF BALANCE SHEET;Definition

A balance sheet is a statement of the total assets and liabilities of an organization at a particular date - usually the last date of an accounting period. The balance sheet is split into two parts: (1) A statement of fixed assets, current assets and the liabilities (sometimes referred to as "Net Assets") (2) A statement showing how the Net Assets have been financed, for example through share capital and retained profits.

The Companies Act requires the balance sheet to be included in the published financial accounts of all limited companies. In reality, all other organizations that need to prepare accounting information for external users (e.g. charities, clubs, and partnerships) will also product a balance sheet since it is an important statement of the financial affairs of the organization. A balance sheet does not necessary "value" a company, since assets and liabilities are shown at "historical cost" and some intangible assets (e.g. brands, quality of management, market leadership) are not included.

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Balance sheet
Mar ' 11 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-inprogress Investments Net current assets Current assets, loans 27,630.41 29,997.23 34,384.06 31,129.77
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Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

1,151.82 0.29 53,938.82

1,114.89 50,503.48

1,113.29 350.00 48,419.73

1,112.68 350.00 45,357.53

899.34 350.00 23,413.92

2,25,602.11 2,02,016.60 2,18,347.82 2,44,431.05 2,30,510.19 2,80,693.05 2,53,634.96 2,68,230.84 2,91,251.26 2,55,173.45

9,107.47 4,363.21 4,744.26 -

7,114.12 3,901.43 3,212.69 -

7,443.71 3,642.09 3,801.62 -

7,036.00 2,927.11 4,108.90 -

6,298.56 2,375.14 3,923.42 189.66 91,257.84

1,34,685.96 1,20,892.80 1,03,058.31 1,11,454.34

23,551.85

Mar ' 11 & advances Less : current liabilities & provision Total net current assets Miscellaneous expenses not written Total 15,986.35 11,644.06 -

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

15,501.18 14,496.05 -

43,746.43 -9,362.37 -

42,895.38 -11,765.62 -

38,228.64 -14,676.78 80,694.15

1,51,074.28 1,38,601.54

97,497.56 1,03,797.62

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STUDY OF CASH FLOW STAEMENT:MEANING The official name for the cash flow statement is the statement of cash flows. We will use both names throughout Accounting. The statement of cash flows is one of the main financial statements. (The other financial statements are the balance sheet, income statement, and statement of stockholders' equity.) The cash flow statement reports the cash generated and used during the time interval specified in its heading. The period of time that the statement covers is chosen by the company. For example, the heading may state "For the Three Months Ended December 31, 2008" or "The Fiscal Year Ended September 30, 2009".

The cash flow statement organizes and reports the cash generated and used in the following categories:

Operating activities

Converts the items reported on the income statement from the accrual basis of accounting to cash. Investing activities In reports the purchase and sale of long-term investments and property, plant and equipment Financing activities Reports the issuance and repurchase of the company's own bonds and stock and the payment of dividends.

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STUDY OF FINANCIAL STATEMENT:Financial statement analysis is the process of examining relationships among financial statement elements and making comparisons with relevant information. It is a valuable tool used by investors and creditors, financial analysts, and others in their decision-making processes related to stocks, bonds, and other financial instruments. The goal in analyzing financial statements is to assess past performance and current financial position and to make predictions about the future performance of a company. Investors who buy stock are primarily interested in a company's profitability and their prospects for earning a return on their investment by receiving dividends and/or increasing the market value of their stock holdings. Creditors and investors who buy debt securities, such as bonds, are more interested in liquidity and solvency the company's short-and long-run ability to pay its debts. Financial analysts, who frequently specialize in following certain industries, routinely assess the profitability, liquidity, and solvency of companies in order to make recommendations about the purchase or sale of securities, such as stocks and bonds. Analysts can obtain useful information by comparing a company's most recent financial statements with its results in previous years and with the results of other companies in the same industry. Three primary types of financial statement analysis are commonly known as horizontal analysis, vertical analysis, and ratio analysis. y Horizontal Analysis y Vertical Analysis y Ratio Analysis y

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Horizontal Analysis:When an analyst compares financial information for two or more years for a single company, the process is referred to as horizontal analysis, since the analyst is reading across the page to compare any single line item, such as sales revenues. In addition to comparing dollar amounts, the analyst computes percentage changes from year to year for all financial statement balances, such as cash and inventory. Alternatively, in comparing financial statements for a number of years, the analyst may prefer to use a variation of horizontal analysis called trend analysis. Vertical Analysis:When using vertical analysis, the analyst calculates each item on a single financial statement as a percentage of a total. The term vertical analysis applies because each year's figures are listed vertically on a financial statement. The total used by the analyst on the income statement is net sales revenue, while on the balance sheet it is total assets. This approach to financial statement analysis, also known as component percentages, produces common-size financial statements. Ratio Analysis:Ratio analysis enables the analyst to compare items on a single financial statement or to examine the relationships between items on two financial statements. After calculating ratios for each year's financial data, the analyst can then examine trends for the company across years. Since ratios adjust for size, using this analytical tool facilitates inter-company as well as intra company comparisons. Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios
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STUDY OF FINANCIAL RATIOS:MEANING

Financial ratio analysis is the calculation and comparison of ratios which are derived from the information in a company's financial statements. The level and historical trends of these ratios can be used to make inferences about a company's financial condition, its operations and attractiveness as an investment

Financial ratio analysis groups the ratios into categories which tell us about different facets of a company's finances and operations. An overview of some of the categories of ratios is given below.

y Leverage Ratios which show the extent that debt is used in a company's capital structure. y Liquidity Ratios which give a picture of a company's short term financial situation or solvency. y Operational Ratios which use turnover measures to show how efficient a company is in its operations and use of assets. y Profitability Ratios which use margin analysis and show the return on sales and capital employed. y Solvency Ratios which give a picture of a company's ability to generate cash flow and pay it financial obligations.

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SWOT ANALYSIS OF ICICI BANK

Strengths:  Very fast growing bank of Rajasthan as well as of India.  Track record of high growth and profitability.  Strong financial background.  One of the biggest financial institutions before converting into bank.  Long experience of banking that is why it is called 20 years old new bank.  Latest technology used by the bank.  Free Home Banking transaction facility.  Very good database maintained by the bank, i.e., Banking Customer Information Database.

Weaknesses:  Low brand image.  High average quarterly balance to be maintained by the costumer.  Only one branch and one ATM network in whole Rajasthan.  Lack of coordination between different departments.  Lack of costumer awareness regarding services and bank because of low advertising.  Does not provide very important facilities like credit card facility, cash credit limit facility.

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Opportunities:  Opportunities of entering into major cities of Rajasthan like Kota, Ajmer, and Bikaner etc.  Scope of more ATM networks.  Opportunities to increase its customer base in liabilities section by marketing their products on local television channels, fm, and hoardings.

Threats:  Threats from nationalized banks.  Threats from private bank like HSBC, UTI, and HDFC because these banks open both savings and current account at a very nominal amount with somewhat similar services.

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CONCLUSIONS:-The balance sheet along with the income statement is an important tools for investor and many others parties who are interested in it to gain insight in to a company and its operation. The balance sheet is a snapshot at a single point of time of the company account covering its assets liabilities and shareholders equity the purpose of the balance sheet is to give users an idea of the company financial position along with displaying what the company owns and owns . it is important that all investors know how to use, analysis and read balance sheet . profit & loss account tells the net profit and loss of the company and its is important that all investors know how to use analysis and read balance sheet . profit and loss account of a company and its appropriation .

In the case of ICICI Bank, during fiscal 2008, the bank continued to grow the and diversify its assets base and revenue . streams bank maintain its leadership in all main areas such as retail credit , whole sale business , international operation insurance mutual fund rural banking etc. continuous increase in the number of branch & ATM and electronic channels shows the growth take place in bank.

Trend analysis of profit & loss account and balance sheet shows the % change in items of P & L a/c and B/S. it shows that all items are increased mostly but increase in this year is less then as compared to increase in previous year . In P&L account all items like interest income , non interest
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income , interest expenses , operating expenses operating profit is increased but in mostly cases it is less then previous year.

Ratio analysis of financial statement show the banks current ratio is better than the quick ratio and fixed worth ratio . it means and has invested more in current assets bank have given more advances to its customers and they have has case in their hand , profitability ratio of bank is lower then as compared to previous year.

The cash flow statement shows that net increase in cash generated from operating and financing activities is much more then the previous year but cash generated from investing actives is negative in both year their is increase in of 159, 708, 479, thousand in increase in cash and cash equivalent.

Thus the ratio analysis and trend analysis and analysis of cash flow statement show that icici bank financial position is good banks profitability is increase but not at high rate banks liquidity position is fair but not good because bank invest in current account tham liquid assets.

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SUGGESTIONS:
ICICI Bank should chalk out some programs to create general awareness regarding its presence and various services of the bank. More attention is required in distant located firms and caters the needs of those commercial areas. Personal Marketing / Aggressive Marketing: Today is the era of competition. In order to increase the banking network (in terms of clients and business volume) an aggressive approach is required. The bank should recruit more number of marketing personnel, so that they can cover the whole of the city. Personal marketing can be one of the methods or modes of taking people into confidence.

Promotional campaign: - In the era of such stringent competitiveness one has to take care of promotional activities. It can be done in following ways:

Advertising: - Initially when we took our work we found that general awareness amongst people regarding ICICI Bank was good. The bank should instead of being centrally advertised, try to advertise locally. This can be done in following ways: -

That involved an amalgamation with Blue Green Construction and Investments, a company promoted by Subhikshas founder-head, R Subramanian, and a rearrangement of lending schedules.

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ICICI also told the high court today that the retail chain need not depend on the outcome of corporate debt restructuring (CDR) for its revival. The deadline for the CDR was July 31, which was missed.

The banks counsel said the retail chain has an exposure of around Rs 870 crore to banks, Rs 107 crore to unsecured lenders and Rs 250 crore of reserves, which none of us know where it went. There are also loans/advances of Rs 119 crore where the identity of the parties is unclear, it said.

The counsel, along with others, sought for an investigation on Subhiksha. The others include ICICI Venture, HCL Info systems, Azim Premj i-owned Zash Investment and Kotak Mahindra Bank. The investigation request came after Subhiksha told the court that investors and promoters are ready to pump in Rs 250 crore. Post merger (with Blue Green), we can pump in Rs 150 crore in eight weeks from the investors and another Rs 100 crore in 6-9 months, counsel representing Subhiksha told the court. The attention is required on areas of growth, profitability, services level and building talent. To increase the profit of bank, bank should decrease their operating expenses and increase their income. To increase its liquidity bank should keep some more cash in its hand instead of giving more and more advances.
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BIBLIOGRAPHY:-

1. Marketing Research (An applied approach) 2. Research Methodology 3. Marketing Management 4. Marketing of Services 5. Internet links

Thomas Kinnear & James R Taylor

C.R.Kothari Philip Kotler Philip Kotler www.icicibank.com

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