A PROJECT ON

AN ANALYSIS OF FINANCIAL STATEMENT OF ICICI BANK

Supervisor: Prof. Ishwar Singh Head of Department (Finance)

Submitted by: Name: Neeraj Pandey Enrolment No:11061248025 Specialization: Finance

Remarks of Evaluator

Approved/Disapproved (I Evaluation)

Approved/Disapproved (I Evaluation)

SESSION: 2011-2013

DIRECTORATE OF DISTANCE EDUCATION (GURU JAMBHESHWAR UNIVERSITY OF SCIENCE& TECH. HISAR)

PREFACE

A hallmark of any premier business school is its willingness and ability to constantly explore and implement new ideas and practices in the field of management education. Institute constantly reorients their programs in order to keep abreast of changing development. The initial interaction between school students and industry takes place when the students undergo project is usually for knowing the process for recruitment, selection, industrial relations & training of that institution. It is often the exposure to corporate culture that a student receives, particularly true for students without prior work experience. As a part of curriculum of MBA have joined ICICI, New Delhi for summer training & project. ICICI is a service oriented Co-operative democratic institution engaged in giving the best in banking services to its customers. During my training at ICICI, Head Office I was taken project on marketing & financial services of ICICI. The main purpose of the study is to know the policies of the bank regarding marketing & financial services, which helped me in gaining knowledge about the different working pattern of different departments of a bank.

ACKNOWLEDGEMENT

"Accomplishment of any task necessarily depends upon the willingness and enthusiastic contribution of time and energy of many people." From the starting till the completion of this project, there are many people without whose assistance all my efforts would have been fruitless. I, therefore, acknowledge all who generously helped me by sharing their time, experience and knowledge with me without which this project would have never been accomplished.

I must express my gratitude to Mr. ISWAR SINGH(my project guide) whose perceptive guidance, constant encouragement, constructive criticism and affection were the light of guidance during my tenure of my work.

Finally, I would like to state that the project not only fulfilled an academic requirement, but would also help me in future endeavors in the years to come.

OVERVIEW OF THE INDUSTRY

Banks have played a critical role in the economic development of some developed countriessuch as Japan and Germany and most of the emerging economies including India. Banks todayare important not just from the point of view of economic growth, but also financial stability. Inemerging economies, banks are special for three important reasons. First, they take a leadingrole in developing other financial intermediaries and markets. Second, due to the absence ofwell-developed equity and bond markets, the corporate sector depends heavily on banks tomeet its financing needs. Finally, in emerging markets such as India, banks cater to the needs

of a vast number of savers from the household sector, who prefer assured income and liquidity and safety of funds, because of their inadequate capacity to manage financial risks. Forms of banking have changed over the years and evolved with the needs of the economy. The transformation of the banking system has been brought about by deregulation, technological innovation and globalization. While banks have been expanding into areas which were traditionally out of bounds for them, non-bank intermediaries have begun to perform many of the functions of banks. Banks thus compete not only among themselves, but also with non- bank financial intermediaries, and over the years, this competition has only grown in intensity. Globally, this has forced the banks to introduce innovative products, seek newer sources of income and diversify into non-traditional activities.

1.1 DEFINITION OF BANKS In India, the definition of the business of banking has been given in the Banking Regulation Act, (BR Act), 1949. According to Section 5(c) of the BR Act, 'a banking company is a company which transacts the business of banking in India.' Further, Section 5(b) of the BR Act defines banking as, 'accepting, for the purpose of lending or

investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable, by cheque, draft, order or otherwise.' This definition points to the three primary activities of a commercial bank which distinguish it from the other financial institutions. These are: (i) maintaining deposit accounts including current accounts, (ii) issue and pay cheques, and (iii) collect cheques for the bank's customers.

EVOLUTION OF COMMERCIAL BANKS IN INDIA

The commercial banking industry in India started in 1786 with the establishment of the Bank of Bengal in Calcutta. The Indian Government at the time established three Presidency banks, viz., the Bank of Bengal (established in 1809), the Bank of Bombay (established in 1840) and the Bank of Madras (established in 1843). In 1921, the three Presidency banks were amalgamated to form the Imperial Bank of India, which took up the role of a commercial bank, a bankers' bank and a banker to the Government. The Imperial Bank of India was established with mainly European shareholders. It was only with the establishment of Reserve Bank of India (RBI) as the central bank of the country in 1935, that the quasi-central banking role of the Imperial Bank of India came to an end. In 1860, the concept of limited liability was introduced in Indian banking, resulting in the establishment of joint-stock banks. In 1865, the Allahabad Bank was established with purely Indian shareholders. Punjab National Bank came into being in 1895. Between 1906 and 1913, other banks like Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. After independence, the Government of India started taking steps to encourage the spread of banking in India. In order to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank taking over the Imperial Bank of India and integrating with it, the former state-owned and state-associate banks. Accordingly, State Bank of India (SBI) was constituted in 1955. Subsequently in 1959, the State Bank of India (subsidiary bank) Act was passed, enabling the SBI to take over eight former stateassociate banks as its subsidiaries. To better align the banking system to the needs of planning and economic policy, it was

considered necessary to have social control over banks. In 1969, 14 of the major private sector banks were nationalized. This was an important milestone in the history of Indian banking. This was followed by the nationalisation of another six private banks in 1980. With the nationalization of these banks, the major segment of the banking sector came under the control of the Government. The nationalisation of banks imparted major impetus to branch expansion in un-banked rural and semi-urban areas, which in turn resulted in huge deposit mobilization, thereby giving boost to the overall savings rate of the economy. It also resulted in scaling up of lending to agriculture and its allied sectors. However, this arrangement also saw some weaknesses like reduced bank profitability, weak capital bases, and banks getting burdened with large non-performing assets. To create a strong and competitive banking system, a number of reform measures were initiated in early 1990s. The thrust of the reforms was on increasing operational efficiency, strengthening supervision over banks, creating competitive conditions and developing technological and institutional infrastructure. These measures led to the improvement in the financial health, soundness and efficiency of the banking system. One important feature of the reforms of the 1990s was that the entry of new private sector banks was permitted. Following this decision, new banks such as ICICI Bank, HDFC Bank, IDBI Bank and UTI Bank were set up. Commercial banks in India have traditionally focused on meeting the short-term financial needs of industry, trade and agriculture. However, given the increasing sophistication and diversification of the Indian economy, the range of services extended by commercial banks has increased significantly, leading to an overlap with the functions performed by other financial institutions. Further, the share of long-term financing (in total bank financing) to meet capital goods and project-financing needs of industry has also increased over the years.

FUNCTIONS OF COMMERCIAL BANKS The main functions of a commercial bank can be segregated into three main areas: (i) Payment System (ii) Financial Intermediation (iii) Financial Services.

i) Payment System Banks are at the core of the payments system in an economy. A payment refers to the means by which financial transactions are settled. A fundamental method by which banks help in settling the financial transaction process is by issuing and paying cheques issued on behalf of customers. Further, in modern banking, the payments system also involves electronic banking, wire transfers, settlement of credit card transactions, etc.In all such transactions, banks play a critical role.

(ii) Financial Intermediation The second principal function of a bank is to take different types of deposits from customers and then lend these funds to borrowers, in other words, financial intermediation. In financial terms, bank deposits represent the banks' liabilities, while loans disbursed, and investments made by banks are their assets. Bank deposits serve the useful purpose of addressing the needs of depositors, who want to ensure liquidity, safety as well as returns in the form of interest. On the other hand, bank loans and investments made by banks play an important function in channeling funds into profitable as well as socially productive uses. (iii) Financial Services In addition to acting as financial intermediaries, banks today are increasingly involved with offering customers a wide variety of financial services including investment banking, insurance-related services, government-related business, foreign exchange businesses, wealth management services, etc. Income from providing such services improves a bank's profitability.

2.1 BANKING STRUCTURE IN INDIA Banking Regulator The Reserve Bank of India (RBI) is the central banking and monetary authority of India, andalso acts as the regulator and supervisor of commercial banks.

SCHEDULED BANKS IN INDIA

Scheduled banks comprise scheduled commercial banks and scheduled co-operative banks.Scheduled commercial banks form the bedrock of the Indian financial system, currently accounting for more than three-fourths of all financial institutions' assets. SCBs are present throughout India, and their branches, having grown more than four-fold in the last 40 years now number more than 80,500 across the country . Our focus in this module will be only on the scheduled commercial banks. A pictorial representation of the structure ofSCBs in India is given in figure 2.1.

PUBLIC SECTOR BANKS

Public sector banks are those in which the majority stake is held by the Government of India (GoI). Public sector banks together make up the largest category in the Indian banking system.There are currently 27 public sector banks in India. They include the SBI and its 6 associate banks (such as State Bank of Indore, State Bank of Bikaner and Jaipur etc), 19 nationalizedbanks (such as Allahabad Bank, Canara Bank etc) and IDBI Bank Ltd. Public sector banks have taken the lead role in branch expansion, particularly in the rural areas. Public sector banks account for bulk of the branches in India (88 percent in 2009). In the rural areas, the presence of the public sector banks is overwhelming; in 2009, 96 percent of the rural bank branches belonged to the public sector. The private sector banks and foreign banks have limited presence in the rural areas. REGIONAL RURAL BANKS

Regional Rural Banks (RRBs) were established during 1976-1987 with a view to develop therural economy. Each RRB is owned jointly by the Central Government, concerned State Government and a sponsoring public sector commercial bank. RRBs provide credit to smallfarmers, artisans, small entrepreneurs and agricultural labourers. Over the years, theGovernment has introduced a number of measures of improve viability and profitability ofRRBs, one of them being the amalgamation of the RRBs of the same sponsored bank within aState. This process of consolidation has resulted in a steep decline in the total number of RRBsto 86 as on March 31, 2009, as compared to 196 at the end of March

2005. PRIVATE SECTOR BANKS

In this type of banks, the majority of share capital is held by private individuals and corporates.Not all private sector banks were nationalized in in 1969, and 1980. The private banks whichwere not nationalized are collectively known as the old private sector banks and include bankssuch as The Jammu and Kashmir Bank Ltd., Lord Krishna Bank Ltd etc. Entry of Private Sector banks was however prohibited during the post-nationalisation period. In July 1993, as part ofthe banking reform process and as a measure to induce competition in the banking sector, RBIpermitted the private sector to enter into the banking system. This resulted in the creation ofa new set of private sector banks, which are collectively known as the new private sectorbanks. As at end March, 2009 there were 7 new private sector banks and 15 old private sectorbanks operating in India. FOREIGN BANKS

Foreign banks have their registered and head offices in a foreign country but operate theirbranches in India. The RBI permits these banks to operate either through branches; or throughwholly-owned subsidiaries.The primary activity of most foreign banks in India has been inthe corporate segment. However, some of the larger foreign banks have also made consumer-financing a significant part of their portfolios. These banks offer products such as automobilefinance, home loans, credit cards, household consumer finance etc. Foreign banks in India arerequired to adhere to all banking regulations, including priority-sector lending norms asapplicable to domestic banks. In addition to the entry of the new private banks in the mid-90s, the increased presence of foreign banks in India has also contributed to boosting competitionin the banking sector. CO-OPERATIVE BANKS

Co-operative banks cater to the financing needs of agriculture, retail trade, small industry andself-employed businessmen in urban, semi-urban and rural areas of India. A distinctive featureof the co-operative credit structure in India is its heterogeneity. The structure differs acrossurban and rural areas, across states and loan maturities. Urban areas are served by urban co-operative banks (UCBs), whose operations are either limited to one

state or stretch acrossstates. The rural co-operative banks comprise State co-operative banks, district central co-operative banks, SCARDBs and PCARDBs.The co-operative banking sector is the oldest segment of the Indian banking system. Thenetwork of UCBs in India consisted of 1721 banks as at end-March 2009, while the number ofrural cooperative banks was 1119 as at end-March 2008.Owing to their widespreadgeographical penetration, cooperative banks have the potential to become an importantinstrument for large-scale financial inclusion, provided they are financially strengthened.The RBI and the National Agriculture and Rural Development Bank (NABARD) have taken anumber of measures in recent years to improve financial soundness of co-operative banks.

Company Profile
ICICI BANK ICICI Bank is Indias second-largest bank with total assets of 3,997.95 billion (US$ 100 billion) at March 31, 2011 and profit after tax of Rs. 41.58 billion for the year ended March 31, 2011. ICICI Bank is the most valuable bank in India in terms of market capitalization and is ranked second amongst all the companies listed on the Indian stock exchanges. In terms of free float market capitalization*. The Bank has a network of about 1308 branches and 3,950 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customer through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and DubaiInternationalFinanceCenter and representative offices in the United States, United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. UK subsidiary has established a branch in Belgium.

3.1.1HISTORY
ICICI
Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2011, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2011, and secondary market sales by ICICI to institutional investors in fiscal 2011 and fiscal 2011. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transactionbanking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2011, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail

finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2011, by the High Citst of Gujarat at Ahmedabad in March 2011, and by the High Citst of Judicature at Mumbai and the Reserve Bank of India in April 2011. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.

3.1.2 BOARD OF DIRECTORS

MR. N.Vaghul (CHAIRMAN) MR. SridarIyengar MR. Lakshmi N. Mittal MR. NarendraMurkumbi MR. AnupamPuri Mr. ArunRamanathan MR. M. K. Sharma MR. P.M. Sinha Prof. Marti G. Subrahmanyam MR. T. S. Vijayan MR. V. PremWasta MR. K. V. Kamath (MANAGING DIRECTOR & CEO) MR. ChandaKochhar (JOINT MANAGING DIRECTOR) MR. V. Vaidyanathan, (EXECUTIVE DIRECTOR) Ms. MadhabiPuri-Buch, Executive Director MR. Sonjoy Chatterjee (EXECUTIVE DIRECTOR)

3.1.3 BOARD COMMITTEES

Audit Committee Mr. SridarIyengar Mr. NarendraMurkumbi Mr. M. K. Sharma

Board Governance & Remuneration Committee Mr. N. Vaghul Mr. AnupamPuri Mr. M. K. Sharma Mr. P. M. Sinha Prof. Marti G. Subrahmanyam

Customer Service Committee Mr. N. Vaghul Mr. NarendraMurkumbi Mr. M.K. Sharma Mr. P.M. Sinha Mr. K. V. Kamath

Credit Committee Mr. N. Vaghul Mr. NarendraMurkumbi Mr. M .K. Sharma Mr. P. M. Sinha Mr. K. V. Kamath

Fraud Monitoring Committee Mr. M. K. Sharma Mr. NarendraMurkumbi Mr. K. V. Kamath Ms. Chanda D. Kochhar Mr. V. Vaidyanathan

Risk Committee Mr. N. Vaghul Mr. SridarIyengar Prof. Marti G. Subrahmanyam Mr. V. PremWatsa Mr. K. V. Kamath

Share Transfer & Shareholders/ Investors Grievance Committee Mr. M. K. Sharma Mr. NarendraMurkumbi Ms. Chanda D. Kochhar Ms. MadhabiPuri-Buch

Asset-Liability Management Committee Ms. Chanda D. Kochhar Ms. MadhabiPuri-Buch Mr. Sonjoy Chatterjee Mr. V. Vaidyanathan

Committee of Directors Mr. K. V. Kamath Ms. Chanda D. Kochhar Ms. MadhabiPuri-Buch Mr. Sonjoy Chatterjee Mr. V. Vaidyanathan

3.1.4 ICICI Banks global network, today, spans 18 countries.

3.1.5 VISION AND MISSION 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, worldclass products and services. Expand the frontiers of our business globally. Play a proactive role in the full realisation of Indias 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.

3.1.7 ORGANISATIONAL STRUCTURE OF ICICI BANK

ICICI Banks organisation structure is designed to be flexible and customer-focused, while seeking to ensure effective control and supervision and consistency in standards across the organisation and align all areas of operations to overall organisational objectives. The organisation structure is divided into six principal groups Retail Banking, Wholesale Banking, International Banking, Rural (Micro-Banking) and Agriculture Banking, Government Banking and CorporateCenter.

RETAIL BANKING
The Retail Banking Group is responsible for products and services for retail customers and small enterprises including various credit products, liability products, distribution of third party investment and insurance products and transaction banking services.

WHOLESALE BANKING
The Wholesale Banking Group is responsible for products and services for large and medium-sized corporate clients, including credit and treasury products, investment banking, project finance, structured finance and transaction banking services.

INTERNATIONAL BANKING
The International Banking Group is responsible for its international operations, including operations in various overseas markets as well as its products and services for nonresident Indians and its international trade finance and correspondent banking relationships.

 RURAL AND AGRICULTURAL BANKING

The Rural, Micro-Banking & Agri-Business Group is responsible for envisioning and implementing rural banking strategy, including agricultural banking and micro-finance.

GOVERNMENT BANKING
The Government Banking Group is responsible for government banking initiatives.

CORPORATE CENTER
The Corporate Center comprises the internal control environment functions (including operations, risk management, compliance, audit and legal); finance (including financial reporting, planning and strategy, asset liability management, investor relations and corporate communications); human resitsces management; and facilities management & administration.

BUSINESS REVIEW
During fiscal 2011, the Bank continued to grow and diversify its asset base and revenue streams by leveraging the growth platforms created over the past few years. We maintained our leadership position in retail credit, achieved robust growth in our fee income from both corporate and retail businesses, strengthened our deposit franchise and significantly scaled up our corporate and international banking operations.

RETAIL BANKING
We are the largest provider of retail credit in India. Our total retail portfolio was Rs. 1,316.63 billion at March 31,2011, constituting 58% of our total loans at that date. During fiscal 2011, we continued our focus on strengthening our retail deposit franchise to create a stable funding base. Our current and savings account (CASA) deposits as a percentage of total deposits increased from 22% at March 31, 2010 to 26% at March 31, 2011, with savings account deposits increasing by 36% during fiscal 2011.

During the year, we have expanded our branch network substantially. At March 31, 2011, we had 1,262 branches & extension counters compared to 755 branches & extension counters at March 31, 2010, including the addition of about 200 branches through the merger of Sangli Bank. Our branch network has further increased to 1,367 as of May 31, 2011. We continued to expand our electronic channels, namely internet banking, mobile banking, call centres, point of sale terminals and ATMs, and migrate customer transaction volumes to these channels. We increased our ATM network to 3,881 ATMs at March 31, 2011 from 3,271 ATMs at March 31, 2010.

SMALL AND MEDIUM ENTERPRISES

During fiscal 2011, our small enterprises customer base increased by 26% to about 1.1 million accounts. We have introduced our service offerings in over 400 new branches, increasing our coverage to over 1,000 branches. During the year, we have focused on product specialisation including investment banking for SMEs. We have continued to focus on shaping the small and medium enterprises sphere in India through initiatives such as the Emerging India Awards, the SME CEO Knowledge Series - a platform to mentor and assist SME entrepreneurs, and the SME Dialogue - a weekly feature in a leading financial newspaper sharing SME best practices and success stories. During the year, we have launched several new products and services like the SME toolkit an online business and advisory resource for SMEs.

CORPORATE BANKING
Its corporate banking strategy is based on providing comprehensive and customized financial solutions to its corporate customers. It offer a complete range of corporate banking products including rupee and foreign currency debt, working capital credit, structured financing, syndication and transaction banking products and services. Fiscal 2011 saw continued demand for credit from the corporate sector, with growth and additional investment demand across all sectors. We were able to leverage our international presence and deep corporate relationships to work on overseas acquisitions

made by Indian companies and infrastructure projects in India. During fiscal 2011 we were involved in 75% of outbound mergers and acquisitions deals from India. We are now a preferred partner for Indian companies for syndication of external commercial borrowings and other fund raising in international markets and have been ranked number one in offshore loan syndications of Indian corporates in calendar year 2010.

RURAL BANKING
Its rural strategy is based on enhancing value at every level of the supply chain in all important farm and non-farm sectors. Towards this end, it offer a range of financial products and services that cater to the rural masses in all the important sectors like infrastructure, horticulture, food processing, dairy, poultry, seeds, fertiliser and agrochemical industries. Customised financial solutions are offered to individual customers, agri small & medium enterprises, agri corporates and members of their supply chains. On the rural retail side, the Bank offers crop loans, farm equipment financing, commodity-based loans, working capital loans for agri-enterprises, microfinance loans, jewel loans as well as savings, investment and insurance products. In addition bank is introducing products like rural housing finance to cater to the needs of rural customers.

INTERNATIONAL BANKING
ICICI Bank has established a strong franchise among non-resident Indians (NRI). It has established strong customer relationships by offering a comprehensive product suite, technology-enabled access for overseas customers, a wide distribution network in India and alliances with local banks in various markets. It has over 5,00,000 NRI customers. It has undertaken significant brand-building initiatives in international markets and have emerged as a well-recognised financial services brand for NRIs. Its market share in inward remittances into India has increased to over 25%. It has consolidated its global remittance initiative, targeting non-Indian communities, by leveraging its core capabilities of technology-based service delivery. A large number of remittance products

were introduced to complement the existing suite of products. The business focus has been on rolling out successful products across multiple geographies and getting into high volume correspondent arrangements.

3.1.5 PRODUCTS AND SERVICES BANKING ACCOUNTS

ICICI Bank offers a wide range of banking accounts such as Current, Saving, Life Plus Senior, Recurring Deposit, Young Stars, Salary Account etc. tailor-made for every customer segments, from children to senior citizens. Convenience and ease to access are the benefits of ICICI Bank accounts.

YOUNG STARS ACCOUNT

A special portal for children to learn banking basics, manage personal finances and have a lot of fun.

BANK@CAMPUS
This student banking services gives students access to their account details at the click of a mouse. Plus, the student gets a cheque book, debit card and annual statements.

SAVINGS ACCOUNTS
Convenience is the name of the game with ICICI banks savings account. whether it is an ATM/debit card, easy withdrawal, easy loan options or internet banking, ICICI banks saving account always keep you in touch of money.

FIXED DEPOSITS
ICICI Bank offers a range of deposit solutions to meet varying needs at every stage of life. It offers a range of tenures and other features to suit all requirements.

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

LIFE INSURANCE
The ICICI group provides the many life insurance product through ICICI Prudential Life Insurance Company.

GENERAL INSURANCE
The ICICI group provides the many general insurance products like motor, travel and home insurance through ICICI Lombard General Insurance Company.

LOANS
ICICI bank offers a range of deposits solutions to meet varying needs at every stage of life. It offers a range of tenures and other features to suit all requirements.

HOME LOAN
The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some unbeatable benefits to its customers - Doorstep Service, Simplified Documentation and Guidance throughout the Process. It's really easy !

PERSONAL LOAN
ICICI Bank Personal Loans are easy to get and absolutely hassle free. With minimum documentation you can now secure a loan for an amount uptoRs. 15 lakhs.

 VEHICLE LOANS
The No. 1 financier for car loans in the country. Network of more than 2500 channel partners in over 1000 locations. Tie-ups with all leading automobile manufacturers to ensure the best deals. Flexible schemes & quick processing are the main advantages are here. Avail attractive schemes at competitive interest rates from the No 1 Financier for Two Wheeler Loans in the country . Finance facility upto 90% of the On Road Cost of the vehicle, repayable in convenient repayment options and comfortable tenors from 6 months to 36 months

CARDS
ICICI Bank offers a variety of cards to suit different transactional needs. Its range includes Credit Cards, Debit Cards and Prepaid cards. These cards offer you convenience for financial transactions like cashwithdrawal, shopping and travel. These cards are widely accepted both in India and abroad.

CREDIT CARD
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 time free cards, Insurance benefits, global emergency assistance service, discounts, utility payments, travel discounts and much more.

DEBIT CARD
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 3.5 Lakh merchants in India and 24 million merchants worldwide.

TRAVEL CARD

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.

MOBILE BANKING
Bank on the move with ICICI Bank Mobile Banking. With ICICI Bank, Banking is no longer what it used to be. ICICI Bank offers Mobile Banking facility to all its Bank, Credit Card, Demat and Loan customers. ICICI Bank Mobile Banking can be divided into two broad categories of facilities: Alert facility :ICICI Bank Mobile Banking Alerts facility keeps you informed about the significant transactions in yits Accounts. It keeps you updated wherever you go. Request facility :ICICI Bank Mobile Banking Requests facility enables you to query for yits account balance. INVESTMENT PRODUCTS:Along with Deposit products and Loan offerings, ICICI Bank assists you to manage yits 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 Corporates Investment in "Pure Gold" Foreign Exchange Services Senior Citizens Savings Scheme, 2010 Bank offers online remittances as well as online

TRADE-SERVICES:ICICI

processing of letters of credit and bank guarantees.

ASSET-MANAGEMENT:Prudential
profiles.

ICICI Asset Management Company

offers a wide range of retail mutual fund products tailored to suit varied risk and maturity

CASH MANAGEMENT: ICICI Bank offers a complete rangeof highly customized solutions for managing both the collections and payments requirements of clients by leveraging technology. Daily customized transactions reports and real time web-enabled downloads, management. CORPORATE BANKING: ICICI Bank offers comprehensive and customized financial solutions for its corporate clients, including rupee and foreign currency debts, working capital credit, structured financing syndication and transaction banking products and services. provide on-tap information facilitating effective working capital

INTERNET BANKING: Internet banking is available to all ICICI bank savings and deposit account holders, credit card, demat and loan customers. Internet banking service offers customers a world of convenience with services such as balance enquiry, transaction history, account statement, bill payments, fund transfers and accounts related service requests. ATMs: With more than 2500 ATMs across the country, ICICI Bank has one of the largest ATM networks in India PHONE BANKING: Phone banking offers 24*7 service across liability, asset and investment products to both retail and corporate customers.

NRI-BANKING: A gamut of services to take care of all NRI banking needs including deposits, money transfers and private banking. MONEY2INDIA: A complete range of online and offline money transfer solutions to send money to India.

PROPERTY: For millions of home buyers across the country, ICICI Bank offers not just great deals on home loans but also a wealth of expert advice. ICICI Bank offers home search service which can help a customer identify the property of his choice based on his budget and other requirements. DEMAT ACCOUNTS: ICICI Banks demat services after unique features like econstructions, consolidation, digibank signed statements, mobile requests and corporate benefit tracking. RURAL-BANKING: Bank offers technology-based solutions, financial innovations and multiple delivery channels to meet the financial needs of rural areas. MICROFINANCE:ICICI Bank assists over 2.5 million low income clients to build livelihoods by partnering With over 100 microfinance institutions. BRANCHES: ICICI Bank has a network of over 630 branches ( of which 51 are extension counters) across the country. The network puts a wide range of banking products and financial services with in easy reach of retail and corporate customers.

3.1.6 RISK ASPECTS OF ICICI BANK RISK MANAGEMENT

Risk is an integral part of the banking business and bank aim at delivering superior shareholder value by achieving an appropriate trade-off between risk and returns. Bank is exposed to various risks, including credit risk, market risk and operational risk. Banks 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. Bank has two dedicated groups, the RISK MANAGEMENT GROUP (RMG) and COMPLIANCE & AUDIT GROUP (CAG) which is responsible for assessment, management and mitigation of risk in ICICI Bank. These groups from part of the corporate center are completely independent of all business operations and are accountable to the Risk and Audit committees of the Board of directors. RMG is further organized into the Credit Risk Management group, Market Risk Management group, Retail Risk Management group and Operational Risk Management group. CAG is further organised into the Credit Policies, RBI Inspection & Anti-Money Laundering Group and the Internal Audit Group. CREDIT RISK Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender. Bank measure, monitor and manage credit risk for each borrower and also at the portfolio level. Bank has standardized credit-approval processes, which include a wellestablished procedure for comprehensive credit appraisal and rating. ICICI Bank has well developed internal credit rating methodologies for rating obligors. The rating factors in quantitative, qualitative issues and credit enhancement features specific to the transaction. The rating serves as a key input in the approval as well as post-approval credit processes. Industry knowledge is constantly updated through field visits and interactions with clients, regulatory bodies and industry experts. In retail credit operations, the Board or a Board Committee approves all products, policies and authorizations. Credit approval authority lies only with the credit officers who are distinct from the sales team. Credit scoring models are used in the case of certain products like credit cards. External

agencies such as field investigation agencies and credit processing agencies are used to facilitate a comprehensive due diligence process including visits to offices and homes in the case of loans to individual borrowers.

MARKET RISK Market risk is the risk of loss resulting from changes in interest rates, foreign currency exchange rates, equity prices and commodity prices. The objective of market risk management is to minimize the impact of losses on earnings and equity capital due to market risk. Market risk policies include the Investment Policy and the Asset-Liability Management (ALM) Policy. The policies are approved by The Asset Liability Management Committee (ALCO) of the Board of Directors stipulate liquidity and interest rate risk limits, monitors adherence to limits, articulates the organisations interest rate view and determines the strategy in light of the current and expected environment. These policies and processes are articulated in the ALPM policy. The investment policy addresses issues related to investment in various trading products. RMG exercises independent control over the process of market risk management and recommends changes in process and methodologies for measuring market risk Interest rate risk is measured through the use of re-pricing gap analysis and duration analysis. Liquidity risk is measured through gap analysis. Bank ensure adequate liquidity at all time through systematic funds planning and maintenance of liquid investment as well as focusing on more stable funding sitsces such as retail deposits. ICICI Bank limit exposure to exchange rate risk by stipulating position limits. The treasury Middle Office Group monitors the asset-liability position under the supervision of the ALCO. The Treasury Middle Office Group is also responsible for processing treasury transactions, tracking the daily funds position and complying with all treasury related management and regulatory reporting requirements. OPREATIONAL RISK Operational risk is the risk of loss that 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 the Board of Directors.

equipment, fraud, inadequate training and employee errors. Banks approach to operational risk management is designed 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. Effective operational risk management system would ensure that bank has sufficient information to make appropriate decisions about additional controls, adjustments to controls, or other risk responses. Operational risk management policy aims at minimizing losses and customer dissatisfaction due to failure in processes, focusing on flaws in products and their design that can expose the bank to losses due to fraud, analyzing the impact of failures in systems, developing mitigants to minimize the impact and developing plans to meet external shocks that can adversely impact continuity in the banks operations.

3.1.7 SUBSIDIARY COMPANIES DOMESTIC SUBSIDIARIES

ICICI Home Finance Company Limited ICICI Investment Management Company Limited ICICI Lombard General Insurance Company Limited ICICI Prudential Life Insurance Company Limited ICICI Securities Limited ICICI Trusteeship Services Limited ICICI Venture Funds Management Company Limited ICICI Securities Primary Dealership Limited ICICI Prudential Asset Management Company Limited ICICI Prudential Trust Limited

INTERNATIONAL SUSIDIARIES
ICICI Bank Canada ICICI Bank Eurasia Limited Liability Company ICICI International Limited ICICI Securities Holding Inc ICICI Securities Inc ICICI Bank Uk Limited

3.1.8 KEY GROUP COMPANIES

ICICI PRUDENTIAL INSURANCE COMPANY

ICICI Life continued to maintain its market leadership among private sector life insurance companies with a market share of 12.71% on the basis of weighted received premium. Life insurance companies worldwide make losses in the initial years, in view of business set-up and customer acquisition costs in the initial years as well as reserving for actuarial liability. While the growing operations of ICICI Life had a negative impact of Rs. 10.31 billion on the Banks consolidated profit after tax in FY2011 on account of the above reasons, the companys unaudited New Business Achieved Profit (NBAP) for FY2011 was Rs. 12.54 billion as compared to Rs. 8.81 billion in fiscal 2010.

3.1.11 PUBLIC RECOGNITION

The Bank received several awards during fiscal 2011, including the following: Best Bank in Asia by Euromoney Best Bank in India by Euromoney Fabulous 50 companies in Asia by Forbes Asia Best Domestic Bank in India by Asset Triple A Best Bank of the Year (India) by The Banker Best Private Sector Bank by Outlook Money NDTV Profit Awards 2010 Asias Best Financial Borrower 2010 by Euromoney Excellence in Remittance Business by Asian Banker Most Preferred Brand for home loans, auto loans, credit cards and financial advisory services by CNBC Awaaz Innovative Technology Award by CIO Best Regional Private Bank by The Banker Excellence in Financial Reporting by Institute of Chartered Accountants of India (ICAI)

LITERAUTRE REVIEW
In any organization, the two important financial statements are the Balance sheet & Profit and loss account of the business. Balance sheet is a statement of the financial position of an enterprise at a particular point of time. Profit and 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 the 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 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 statement is necessary because it help in depicting the financial position on the basis of past and current records. Analysis of financial statement helps in making the future decision and strategies. Therefore, it is very necessary for every organization whether it is a financial or manufacturing etc. to make financial statement and to analyse it.

STATEMENT OF THE PROBLEM The first step while conducting research is careful definition of Research Problem. To ERR IS THE HUMAN is a proverb which indicates that no one is perfect in this world. Every researcher has to face many problems which conducting any research thats 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: To make a Financial Analysis of Financial statements of ICICI BANK, NEW DELHI.

MANAGERIAL USEFULNESS OF STUDY:

The study highlights the problems related to distribution of ICICI Bank also that the company can improve the service rendered by them as a distributor. The study gives information about prospective buyers both individual as well as institutional clients. The study provides the complete information about all close competitors of ICICI Bank It provides the feedback from customers regarding their problems and their perception about investing in ICICI Bank also that the company can improve their services. Helping the organization to understand the importance of business Getting to know where the organization is lacking in customer satisfaction Setting up the channel partner Bringing the notice to the organization the untapped markets

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. 2. Primary objective Secondary objective

1.

Primary objective :1) 2) To study the software used in ICICI Bank To analyse the financial statements of the corporation to its true

financial position by the use of ratios

2.

Secondary objective :1) 2) 3) BANK 4) To inform the investor, enabling them to take the investment To find out the shortcomings in ICICI Bank To see whether ICICI BANK is going well or not in different areas To inform the management about the financial condition of ICICI

decision.

SCOPE OF THE STUDY

Extensive survey on customer preferences will provide lot of valuable information about the brand awareness of the product and it will be easy to find out the likes and dislikes about the product. For company, it will provide through knowledge about the consumer preferences in comparison with other market product and suggest valuable direction of the current market trend. It will provide lot of information about the market trend and customer preferences about the product.

It will include valuable suggestions for the company, how the company can strengthen their own brand?

The study of customer preferences will provide me lot of information on: How customer profile differs across the user segments? Dopes the different classes of the customers differ their preferences?

My study includes an extensive survey over 100 customers who normally use the services. The companies included:

LIMITATIONS:
Suggestion is based on the given information. Due to the large number of employee it was not possible to collect all the information from each. The time period is limited to know the entire process .We cannot draw effective conclusion as it is continuous process. The area of survey was limited to some particular areas.

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. Research Methodology is a way to systematically study and solve the research problems. If a researcher wants to claim his study as a good study, he must clearly state the methodology adapted in conducting the research the research so that it way be judged by the reader whether the methodology of work done is sound or not.

The Research Methodology here includes. 1. Meaning of Research. 2. Research Problem. 3. Research Design. 4. Sampling Design. 5. Data Collection method. 6. Analysis and interpretation of Data.

Meaning Research: Research is defined as a scientific and systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. Research is a systematized effort to gain now knowledge. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is an academic activity and this term should be used in a technical sense. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions. Making deductions and reaching conclusions to determine whether they if the formulating hypothesis. Research is thus, an original contribution to the existing stock of knowledge

making for its advancement. The search for knowledge through objective and systematic method of finding solutions to a problem is research.

Research Problem The first step while conducting research is careful definition of Research Problem. To ERR IS THE HUMAN is a proverb which indicates that no one is perfect in this world. Every researcher has to face many problems which conducting any research thats 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: To make 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. 1. What is the study about?

2. Why is the study being made? 3. Where will the study be carried out? 4. What type of data is required? 5. Where can be required data be found? 6. What period of time will the study include? 7. What will be sample design? 8. What techniques of data collection will be used? 9. How will the data be analyzed? 10. 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 this Project

Research Design chosen for this study is Descriptive Research Design. Descriptive study is based on some previous understanding of the topic. Research has got a very specific objective and clear cut data requirements. Sampling Design Sampling is necessary because it is almost impossible to examine the entire parent population (i.e. the entire universe) various factors such as time available cost, purpose of study etc. make it necessary for the researchers to choose a sample. It should neither be too small nor too big. It should be manageable. THE sample size of past 3 years is taken for present study due to time limitation. DATA COLLECTIONS 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

METHODS OF PRIMARY DATA OBSERVATION METHOD INTERVIEW METHODS QUESTIONAIRE METHOD SCHEDULE METHOD

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.

I took data comprise annual reports and post records. Bank has provided me annual reports by help of which, I prepared my report. The valuable cooperation extended by staff members contributed a lot to fulfill the requirements in the collection of data in order to complete the project. Various statistical tools are applied depending on the research problem. In this study ratio analysis, comparative financial statements analysis, common size statements and Trend Analysis has been used for analyzing and interpreting the result.

DATA ANALYSIS
1. Does ICICI Bank has enough resources to sell their services? (a) Strongly Agree (b) Agree (c) Disagree (d) Strongly Disagree

Resources To Sell

10% 30% Strongly Agree 26% Agree Disagree Strongly Disagree

34%

The survey showed that 30% of the people who were surveyed strongly agree to the option that ICICI Bankpossess relevant resources to sell out their services that is construction of housing societies and complexes to the relevant customers, where as 34% and 26% respectively came to a conclusion of agreeing and disagreeing the fact and

fixtures. Whereas 10% strongly disagreed with the point and thought that the company has to improvise in the certain areas so that the selling of the product may increase as per the yearly targets.

2.

What according to you is the products best selling point? (a) Cheap (b) Quality (c) Easy availability (d) Others

Best Selling Point

18%

20% Cheap Quality Easy availability

30%

Others 32%

ICICI Bankbeing a relatively new company in the market and having high competition, the respondents agreed to a certain level that the easy availability and quality of the construction is the main and leading beat selling point. A cumulative of 62% (30% and 32%) respectively agreed to the same, where as a healthy percentage of 38% came to the decision that the price and various other factors were the main selling point of the product.

3.

What is the target audience for ICICI Bank ? (a) High income group (b) Middle Income Group (c) lower Income Group (d) All

Target Audience

14%

18% High Income Group Middle Income Group

28% 40%

Lower Income Group All

In the questionnaire the main question was the target audience of ICICI BankBeing a real estate firm it is very important for the company to set their preferences in regard to target audience. The respondents agreed to the point that the company should focus more on the Middle income group people because the segment of the housing societies that the company deals in can be easily sold to middle income group. Nearly 40% of the respondents agreed to that point. 28% respondents also agreed to the fact that lower income group can also be targeted as know they have the power of housing loan schemes from various banks. 14% favoured the high income group people to be the target audience keeping in mind the business of the company of building complexes.

4.

Where does ICICI Banksells their services? (a) In a business premise (b) Through Agents (c) Online (d) through business sources

Place Of Selling

15% 30% 10% In a Business Premise Through Agents Online Through Business Sources

45%

According to the respondents the main place of selling for ICICI Bankis within their business premises. 30% agreed to the point that the main business is generated within the premises this is because the purchasers visit the company so as to view the flats and complexes and main collaborations regarding the construction of various sites for roads is done within the company. The company also sell the services through the agents on the commission basis. This helps them to obtain good volume of sales because more often the customers goes to agents and property dealers to buy property, which in turn have link with the company, 45% selling is done through these dealers. With the growing use of internet for various purchases the company had also started online procedures for sales through internet.

5.

What Does the Marketing plan of ICICI Bank covers? (a) Internet (b) Advertising (e) Public Relations (c) Sales Promotion (d) Direct Marketing

Market Plan
The main aims of the marketing plan that ICICI Bankhas is to advertise their product in the market and to do direct marketing at the same time. 28% and 29% of the respondents agreed to the same point. Then 9%main focus is on sales promotion of the services, later
13%

comes the use of internet to advertise and market the product so as to grow public relations with more and more customers which in turn will be a great help Internet increasing the turnover of the company. 29%
28% Advertisement Sales Promotion Direct marketing Public Relations

21%

6.

How can marketing help increase in sale for ICICI Bank? (a) Increase in profit (c) Building a brand name

(b) Increasing customer knowledge (d) no use

Marketing Helps in

8%

38% 31%

Increase In Profit Increasing Customer's Knowledge Building a Brand Name No Use

23%

Marketing has a core aim of increasing the sale of the company. According to a large number of respondents (38%) marketing will help the company to increase sale which will result in increasing the profit of the company which can be further used for expansion of the business. More over ICICI Bankbeing a new brand in the market has to also understand the importance of building a potential and sustainable brand name in the market. Marketing will contribute in the cause according to 31% of the respondents. Marketing and proper advertisement will also make the customers aware of the upcoming projects and will provide them with the knowledge.

7.

What is the best medium for the advertisement according to your point of view?

(a) Local Newspapers (b) Hoardings (e) Internet

(c) Radio (d) Campaigns

Medium Of Advertisement

7% 18% Local Newspaper Hoardings Radio Campaigns Internet 23% 18%

34%

ICICI BankAccording to the respondents should advertise the product through local news papers. 34% agreed to it. The reason being easy penetration of newspapers amongst the people in the society, a very large percentage of people read newspapers on daily basis and this can be a core means of advertising the product. Radio in the present day has become very popular amongst the people, with easy access in every house and cars it has grown as a very strong medium of advertisement, 23% of the respondents also share the same view. 18% each agreed to the point that hoardings and campaigns can also be used as effective means of advertisement.

8.

What according to you can be other modes of marketing that can be used by ICICI Bank . (a) Direct Mail (b) Brand Marketing (c) Social Media Marketing (d) Mobile Web Marketing

Mode Of Marketing

12%

16%

Direct Mail Brand Marketing Social Media Marketing 39% 33% Mobile Web Marketing

Ways of marketing is another important segment of marketing. The various modes can be direct mail, brand marketing, social media marketing and mobile web marketing. 39% of the respondents agreed to the point that social media marketing can be a perfect way of marketing. Whereas 33% approved that brand marketing can be used as the mode, which states that the company should use its brand name for marketing the product. A cumulative of 28% agreed that direct mail and mobile web marketing that is marketing through SMS and cold calling can also turn as an effective way of marketing.

9.

How much according to you ICICI Bankis willing and realistically able to spend on advertisement? (a) 0 to 10% of Revenue (b) 10% to 20% of Revenue (c) 20% to 30% of Revenue (d) 30% to 40% of Revenue

Marketing Budget

12%

15%

0 to 10% Of Revenue 10% to 20% Of Revenue 25% 20% to 30% Of Revenue 30% to 40% Of Revenue 48%

Every company has to decide a budget for marketing. A proper budget helps in effectiveness of the marketing schedule. 48% of the respondents agreed to the point that ICICI Bankshould invest about 20% to 30% of their revenue in marketing because being a new company they need to build a brand name and to do that it takes a lot of funds and resources. While 25% people have a view that a little less amount can also do the needful.

10.

What according to you is the impression of the advertisement by ICICI Bank? (a) Funny (b) Interesting (c) Informative (d) Boring

Effectiveness of the Advertisement

7%

18% Funny Interesting

42% 33%

Informative Boring

When the respondents were questioned regarding the effectiveness of the current advertisement, 42% of them said that the advertisement is informative and provides knowledge about the product. 33% agreed that the advertisement was interested enough to pay attention on the advertisement. On the other hand 18% and 7% respondents respectively replied the advertisement was funny and boaring.

5.4 RATIO ANALYSIS

1) CURRENT RATIO:
Current Ratio= Current Assets/Current Liabilities In 2011: Current Assets=380.41+2256.16=2636.57 billion (cash + advances) Current Liabilities=246.91+863.99=1109.9billion (short-term deposits+ borrowings) Current Ratio=2636.57/1109.9=2.4:1 In 2010: Current Assets=371.21+1958.66=2329.87billion (cash + advances) Current Liabilities=213.76+108.37+598.23=920.36 billion (short-term deposits+

borrowings) Current Ratio=2329.87/920.36=2.6:1

2) QUICK RATIO:
Quick Ratio=Quick Assets/Current Liabilities In 2011: Quick Assets=380.41billion (cash in hand and other bank) Current Liabilities=1109.9billion Quick Ratio=380.41/1109.9=0.40:1

In 2010:
Quick Assets=371.21billion (cash in hand and other bank) Current Liabilities=920.30billion Quick Ratio=371.21/920.30=0.40:1

3) RETURN ON AVERAGE ASSETS:

Return on average assets= Net income/average assets*100 average assets= total assets at the beginning + total assets at the end/2 In 2011: net income=25.40 billion Average assets= (1676.59+ 2513.89)/2= 2095.24 Return on average assets= 25.40/2095.24*100 = 1.21% In 2010: net income= 31.10 billion Average assets= (2513.89+ 3446.58)/2= 2980.24 Return on average assets= 31.10/2980.24*100=1.04%

4) RETURN ON AVERAGE EQUITY:

Return on average equity = Net income/average equity*100 average equity= total equity at the beginning + total equity at the end/2 In 2011: net income=25.40 billion Average equity= (129.00+225.56)/2= 177.28 Return on average equity= 25.40/177.28*100 = 17.54% In 2010: net income= 31.10 billion Average equity= (225.56+246.63)/2= 236.10 Return on average equity = 31.10/236.10*100=13.17%

5) FIXED/WORTH RATIO:
Fixed Worth Ratio=Net Fixed Assets/ Tangible Net Worth In 2011: Net Fixed Assets= 39.80 billion Tangible Net Worth= 225.55 billion

Fixed Worth Ratio=39.80/225.55= 0.18:1

In 2010:
Net Fixed Assets= 39.23 billion Tangible Net Worth= 246.62 billion Fixed Worth Ratio=39.23/246.62 = 0.16:1

6) OPERATING PROFIT TO WORKING FUNDS

Operating Profit To Working Funds=operating profit/ average assets*100 In 2011: Operating profit=38.80 billion Average assets=2095.24 Operating profit to working fund=38.80/2095.24*100= 1.85% In 2010: Operating profit=58.84 billion Average assets=2980.84 Operating profit to working fund=58.84/2980.84*100= 1.98% (approximately)

RATIOS Current Ratio Quick Ratio Return On Assets Return On Equity Fixed/worth Ratio Operating profit to working funds

IN 2011 2.4:1 0.40:1 1.21% 17.54% 0.18:1 1.85%

IN 2010 2.6:1 0.40:1 1.04% 13.17% 0.16:1 1.98%

The above table shows that:- both current ratio and quick ratio is liquidity ratio. The ideal ratio for current ratio is 2:1 and ideal ratio for quick ratio is 1:1. In these table current ratio of both year is higher than the ideal ratio which shows that there is enough current assets which make the bank able to pay its current liabilities on time but quick ratio is lower than the ideal ratio which shows that bank have not enough liquid assets to pay their current liabilities. Therefore bank should keep some assets in the form of liquid assets such as cash, marketable securities etc. Return on equity, return on assets and operating profit to working funds are profitability ratio. The higher the profitability ratio of any organization is show the better position of that organization. The profitability ratio of ICICI bank is very low. It is deceasing from the previous year.

Fixed/worth ratio measures the extent to which owners equity has been invested in plant and equipment . A lower ratio indicates a proportionately smaller investment in fixed assets. This ratio shows that bank has invested more in current assets than the fixed assets. It could be a good position in case of liquidation.

4.4.3 TOOLS FOR ANALYSING

1. PERCENTAGE CALCULATION There are two popular methods by which we can analyze the financial statement by calculating percentage as taking a common base. 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. Trend analysis involves calculating each year's financial statement balances as percentages of the first year, also known as the base year. When expressed as percentages, the base year figures are always 100 percent, and percentage changes from the base year can be determined. If we want to calculate % change in sales then we apply the following formula: Percentage=change in sales /Base Year Sales*100 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. Common-size balance sheets and income statements can be more easily compared, whether across the years for a single company or across different companies. If we want to calculate % change of current assets then we apply the following formula: Percentage: current assets/total assets*100

2. RATIO ANALYSIS Financial ratio analysis uses formulas to gain insight into the company and its operations. For the balance sheet, using financial ratios (like the debt-to-equity ratio) can show you a better idea of the companys financial condition along with its operational efficiency. It is important to note that some ratios will need information from more than one financial statement, such as from the balance sheet and the income statement. Ratio analysis facilitates inter-firm and intra-firm comparison. Ratios are often classified using the following terms: LIQUIDITY RATIO Liquidity ratios are measures of the short-term ability of the company to pay its debts when they come due and to meet unexpected needs for cash.

Current Ratio:The current ratio is a rough indication of a firm ability to service its current obligations. Generally, the higher the current ratio, the greater the cushion between current obligations and a firm ability to pay them. The stronger ratio reflects a numerical superiority of current assets over current liabilities Current ratio is calculated as follows: Current ratio= Current Assets/Current Liabilities

Quick Ratio: It is also known as the acid test ratio, this is a refinement of the current ratio and is a more conservative measure of liquidity. The quick ratio

expresses the degree to which a companys current liabilities are recovered by the most liquid current assets. quick ratio is calculated as follows: Quick ratio= (cash + marketable securities + Receivables)/current liabilities SOLVENCY RATIO

Solvency ratios indicate the ability of the company to meet its long-term
obligations on a continuing basis and thus to survive over a long period of time. Debt/Worth Ratio: This ratio expresses the relationship between capital contributed by creditors and that contributed by owners. It expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. The lower the ratio, the greater the long-term financial safety. A firm with a low debt/worth ratio usually has a greater flexibility to borrow in the future. A more highly leveraged company has a more limited debt capacity. Debt/worth ratio=Total Liabilities / Tangible Net Worth

PROFITABILITY RATIO Profitability ratios are gauges of the company's operating success for a given period of time. Return On Assets: Return on assets is a measure of how effectively the firms assets are being used to generate profit. It is calculated as follows: Return On Assets= Net Income/Total Assets Return On Equity: Return on equity is the bottom line measure for the shareholders, measuring for the profits earned for each rupee invested in business. It is calculated as follows: Return on Equity= Net income/shareholders equity Fixed/Worth Ratio: This ratio measures the extent to which owners equity (capital) has been invested in plant and equipment (fixed assets). A lower ratio

indicates a proportionately smaller investment in fixed assets in relation to net worth and a better cushion for creditors in case of liquidation. Similarly, a higher ratio would indicate the opposite situation. The presence of substantial leased fixed assets (not shown on the balance-sheet ) may deceptively lower this ratio.

Fixed Worth Ratio=Net Fixed Assets/ Tangible Net Worth

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

In the case of ICICI Bank, during fiscal 2011, the bank continued to grow and diversify its assets base and revenue streams. Bank maintained its leadership in all main areas such as retail credit, wholesale business, international operation, insurance, mutual fund, rural banking etc. Continuous increase in the number of branches, 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 balance sheet i.e. % change in 2009 from 2008 and % change in 2010 from 2009. It shows that all items are increased mostly but increase in this year is less than as compared to increase in previous year. In p & l a/c, all items like interest income, noninterest income, interest expenses, operating expenses, operating profit, profit before tax and after tax is increased but in mostly cases it is less than from previous year but in some items like interest income, interest expenses, provision % increase is more. Some items like tax, depreciation, lease income is decreased. Similarly in balance sheet all items like advances, cash, liabilities, deposits is increased except borrowings which is decreased. % increase in some item is more than previous year and in some items it is less.

Ratio analysis of financial statement shows that banks current ratio is better than the quick ratio and fixed/worth ratio. It means bank has invested more in current assets than the fixed assets and liquid assets. Bank have given more advances to its customer and they have less cash in their hand. Profitability ratio of bank is lower than as compared to previous year. Return on equity is better than the return on assets.

The cash flow statement shows that net increase in cash generated from operating and financing activities is much more than the previous year but cash generated from investing activities is negative in both year. There is increase of 159,708,479 thousand RS. in Increase in cash & cash equivalents from previous year. Therefore analysis of cash flow statement shows that cash inflow is more than the cash outflow in ICICI Bank.

Thus, the ratio analysis and trend analysis and analysis of cash flow statement shows that ICICI Banks financial position is good. Banks profitability is increasing but not at high rate. Banks liquidity position is fair but not good because bank invest more in current assets than the liquid assets. As we all know that ICICI Bank is on the first position among all the private sector bank of India in all areas but it should pay attention on its profitability and liquidity. Banks position is stable.

SUGGESTIONS
Some of the recommendation and suggestion are as follows: o The attention is required on the areas of growth, profitability ,service level and building talent. o To increase the profit of bank, bank should decrease their operating expenses and increase their income. o To increase its liquidity, bank should keep some more cash in its hand instead of giving more and more advances. o Introduce quality consciousness and standardization of the work system and procedures. o Make manager competitive and introduce spirit of market-orientation and culture of working for customer satisfaction. o There is need to build the knowledge and skill base among the employees in the context of technology. o Performance measure should not only cover financial aspects i.e. quantitatively aspects but also the qualitative aspects. o It is high time to focus on work than the work-achieved. o Bank should increase its retail portfolio. o Bank should manage its all risk such as credit, market and operational risk properly and should be managed by a person who are highly skilled and qualified. o Bank should pay attention on its subsidiary ICICI Prudential Life Insurance Company Limited

QUESTIONNAIRE

1.

Do ICICI Bankhas enough resources to sell their services? (a) Strongly Agree (b) Agree (c) Disagree (d) Strongly Disagree

2.

What according to you is the products best selling point? (b) Cheap (b) Quality (c) Easy availability (d) Others

3.

What is the target audience for ICICI Bank? (c) High income group (d) Middle Income Group (c) lower Income Group (d) All

4.

Where does ICICI Banksells their services? (a) In a business premise (b) Through Agents (c) Online (d) through business sources

5.

What Does the Marketing plan of ICICI Bankcovers? (a) Internet (b) Advertising (e) Public Relations (c) Sales Promotion (d) Direct Marketing

6.

How can marketing help increase in sale for ICICI Bank? (c) Increase in profit (c) Building a brand name

(d) Increasing customer knowledge (d) no use

7. view?

What is the best medium for the advertisement according to your point of

(a) Local Newspapers

(c) Radio

(b) Hoardings 8.

(d) Campaigns

(e) Internet

What according to you can be other modes of marketing that can be used by ICICI Bank. (a) Direct Mail (b) Brand Marketing (c) Social Media Marketing (d) Mobile Web Marketing

9.

How much according to you ICICI Bankare willing and realistically able to spend on advertisement? (a) 0 to 10% of Revenue (b) 10% to 20% of Revenue (c) 20% to 30% of Revenue (d) 30% to 40% of Revenue

10.

What according to you is the impression of the advertisement by ICICI Bank? (a) Funny (b) Interesting (c) Informative (d) Boring

BIBLIOGRAPHY

WEBSITE
www.icicibank.com www.google.com www.scribd.com

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