A

PROJECT REPORT
ON

“ANALYSIS OF FINANCIAL STATEMENT OF

ICICI BANK”

COMPUCOM INTITUTE OF INFORMATION TECHNOLOGY &

MANAGEMENT,
SITAPUR , JAIPUR

Submitted In partial fulfillment for the award of degree

Master of Business Administration (MBA)
Final Year 2010-11

SUBMITTED TO :- SUBMITTED BY:-

Mr. K.C. GUPTA Mr. ANANT JAIN

(H.O.D.) Mob. No.- (0 ) 9509674893
 PREFACE

Master of Business Administration (M.B.A.), one of the most reputed professional courses
includes both theory & practical as a part of two years curriculum.

In this course each student it repute to under go practical project in an organization of repute.
Project is an exercise by +-means of which student learn many things which cannot be taught
in the classroom. During project students understand the real modus operandi of the
concerned areas of interest in the real life situation.

The project process is an endeavor to converts all that’s virtual into a real image i.e. it helps in
applying all the theoretical concepts in to the real corporate world. It helps in developing the
managerial skills using which we can convert into language & convey the taught & ideas from
our mind to others.

2
 ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. K.C GUPTA, Designation (Head of
department) in management department, for guiding me right form the inception till the
successful completion of the project. I sincerely acknowledge him them for extending their
valuable guidance, support for literature, critical reviews of project and the report and above all
the moral support he had provided to me with all stages of this project .

I would also like to thank the supporting staff Mr. Jasmit Singh for their help and cooperation
throughout our project.

ANANT JAIN
( Finance )

3
 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 Jaipur 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.

4
SN TABLE OF CONTENT P.N

1. Introduction of the Industry 7-

2. Introduction of the ICICI BANK 9-

3. Bank History 21-

4. Board of Directors & Committees 26-

5. Introduction of The Organization 31-

6. Credit Rating 43-

7. Risk Management 44-

8. Organization Chart Of ICICI Bank 57-

9. Products & Services 59-

10. Research & Methodology 82-

11. Objectives 84-

12. Scope 86-

13. Facts & Finding 90-

14. Analysis 94-

14.1- Ratio Analysis 101-

15. SWOT Analysis 117-

16. Conclusion 120-

17. Suggestions 123-

5
18. Bibliography 126-

BANKING INDUSTRY IN INDIA

Banking in India has its origin as early as the Vedic period. It is believed that the
transition from money lending to banking must have occurred even before Manu.
The great Hindu Jurist, who has devoted a section of his work to deposits and
advances and lay down rules relating to rate of interest. During the Mogul period,
the indigenous banker played a very important role in lending money and
financing foreign trade and commerce. During the days of the East India
Company it was the turn of the agency houses to carry on the banking business.

The General Bank of India was the first joint Stock Bank to be established in the
year 1786. The others, which followed, were the Bank of Hindustan and Bengal
Bank. The bank of Hindustan is reported to have continued till 1906 while the
other two failed in the meantime. In the first half of the 19 th century of East India
Company establish three banks; The Bank of Bengal in 1809, the Bank of
Bombay in 1840 and the bank of madras in 1843. These three banks also known
as presidency Bank were independent units and functioned well. These three
banks were amalgamated on 27 th January 1921. With the passing of the State
Bank of India Act in 1955 the Reserve Bank of India Act 1934. In the wake of the
Swadeshi Movement, a number of bank with Indian management were establish
in the country namely,

6
7
 1- INTRODUCTION OF INDUSTRY

Banking in a traditional sense is the business of accepting deposits of money

from public for the purpose of lending and investments. These deposits can have
a distinct feature of being withdrawal by cheques, which no other financial
institution can offer.

In addition, banks also offer various other financial services, which includes-

 Issuing Demand Draft and Travelers Cheques

 Credit Card
 Collection of Cheques, Bills of Exchange
 Safe Deposit Lockers
 Issuing Letters of Credit and Letters of Guarantee
 Sale and Purchases of Foreign Exchange
 Custodial Services
 Investment and Insurance services

8
The business of banking is highly regulated since banks deal with money offered
to them by the public and ensuring the safety of this public money is one of the
prime responsibilities of any bank. That is why banks are expected to be prudent
in their lending and investment activities. Every bank has Compliance
department, which is responsible to ensure that all the services offered by the
banks and the processes followed are in compliance with the local regulation and
the bank’s corporate policies:

 Banking Regulation Act, 1949

 Foreign Exchange Management Act, 1999
 Indian Contract Act, 1872
 Negotiable Instrument Act, 1881

Banks lend money either for productive purposes to individuals, firm corporate
etc. or for buying house property, cars and other durable and for investment
purposes to individuals and others.

However banks do not finance any speculative activity. Lending is risk taking;
having prudent norms for lending should cover the risk. The depositors of banks
are also assured of their money by deploying some percentage of deposits in
statutory reserve like SLR and CRR.

9
 2-

INTRODUCTION OF

10
 INTRODUCTION OF ICICI BANK
BANK PROFILE;-

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 wholly-owned 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,

11
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, 2008, 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, 2008.

Branches & ATMs:-

ICICI Bank has a wide network both in Indian and abroad. In India alone, the
bank has 1,420 branches and about 4,644 ATMs. Talking about foreign
countries, ICICI Bank has made its presence felt in 18 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.

12
 PRODUCTS & SERVICES

Personal Banking
 Deposits
 Loans
 Cards
 Investments
 Insurance
 Demat Services
 Wealth Management

NRI Banking

 Money Transfer
 Bank Accounts
 Investments
 Property Solutions
 Insurance
 Loans

Business Banking
 Corporate Net Banking
 Cash Management
 Trade Services
 FX Online
 SME Services
13
  Online Taxes

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 latter’s 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,

14
ECONOMIC OVERVIEW:-

The year 2001 witnessed a continuation of the global economic slowdown that
had begun to set in at the end f the year 2000. This recessionary trend deepened
in the aftermath of the terrorist attacks in the United States in September 2001.
This broad-based nature of the global slowdown, the most marked in recent
times, impacted the outlook for emerging market economies in terms of reduced
capital inflows and restricted access to funds from international capital markets.

However, India remained relatively insulated from the global slowdown due to the
lower significance of the external sector in its Gross Domestic Product (GDP).
Despite the external environment, India’s real GDP recorded one of the highest
growth rates among all the economies of the world. This also marked a recovery
over the low growth in fiscal 2001, though still below the average growth rate of
the previous five years.

The overall GDP growth was supported mainly by agriculture and allied sectors
and services. Services continued to fuel the economy, reflecting robust
performance in financial services and technology. While consumer finance saw
major growth, industrial growth witnessed a decline which may be attributed to
various factors such as business and investment cycles, inherent adjustment
lags of corporate restructuring,

15
Absence of investment demand, infrastructure constraints in power and transport
and delays in establishing a credible institutional and regulatory framework for
private participation in some key sectors. However, select infrastructure sectors,
such as telecommunications and roads, saw significant success. The
implementation of the National Highways Development Programmed (NHDP)
“Golden Quadrilateral” project is expected to be completed on schedule. The port
sector has witnessed progress in private investments in new container terminals
and minor ports and in corporatization of port trusts.

The telecom sector, significant progress has been made by Telecom Regulatory
Authority of India (TRAI) in opening up all segments of the sector to competition,
reducing prices in both long distance and cellular services. However, railways,
power and urban infrastructure are key areas requiring reforms. The Union
Budget for fiscal 2003 takes these concerns into account as it emphasizes
rationalization of user charges and increased public expenditure on
infrastructure.

The average annual rate of inflation in terms of the Wholesale Price Index (WPI)
has declined significantly from 7.1% at the beginning of fiscal 2002 to 2.1% for
the week ended July 8, 2002. This is in line with the deflationary trends
experienced globally in commodity and
manufactured product prices.

16
FINANCIAL SECTOR OVERVIEW:-

The past year saw the process of financial sector reforms being carried forward
with particular focus on banks and financial institutions. Considerable attention
was given to asset classification and provisioning norms in banks. RBI
announced guidelines on universal banking to facilitate the transformation of
financial institutions into banks.

It also granted licenses for two new private sector banks and reduced the cash
reserve ratio in October 2001 and April 2002, bringing it down to 5.0%. The
Union Budget for fiscal 2003 provided for higher tax deduction on provisions for
bad debts. It also proposed the enactment of new legislation for banking sector
reforms and foreclosure laws.

The Union Budget also permitted incorporation of subsidiaries by foreign banks.

The Securitization and Reconstruction of Financial Assets and Enforcement of
Security Interest Ordinance, 2002 has significantly strengthened the ability of
lenders to resolve non-performing assets by granting them greater rights as to
enforcement of security and recovery of dues. The setting up of a pilot asset
reconstruction company is also expected to facilitate faster resolution of non-
performing assets in the financial system.

17
Fiscal 2002 saw measures designed to move towards a flexible interest rate
regime. Measures such as reduction in interest rates and withdrawal of tax
incentives across various small savings schemes, and benchmarking small
savings rates to the average annual yields on Government securities of
equivalent maturities are designed to make all interest rates market linked and
give banks greater flexibility in re pricing their deposits.

The introduction of floating rate deposits with reset at six-monthly intervals and
the option to depositors to convert current fixed rate deposits to variable deposits
is also designed to encourage better spread management for banks.

The liquidity scenario during the past year was comfortable. RBI has indicated
that the policy of active demand management of liquidity through open market
operations and liquidity adjustment facility would be continued. Credit growth and
investment demand would be supported by maintaining the bias towards soft
interest rates. RBI has also given a significant boost to housing finance by
reducing the risk weight age on residential housing loans and mortgage-backed
securities pertaining to residential housing loans from 100% to 50%.48.

18
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.

19
This was determined on the basis of a comprehensive valuation process
incorporating international best practices, carried out by two separate financial
advisors and an independent accounting firm. The equity shares of ICICI Bank
held by ICICI have not been cancelled in the merger. In accordance with the
provisions of the Scheme of Amalgamation, these shares have been transferred
to a Trust to be divested by appropriate placement. The proceeds of such
divestment would accrue to the merged entity. With the merger taking effect, the
paid-up share capital of the Bank has increased to Rs. 6.13 billion,

20
Comprising 613 million shares of Rs.10 each. The merger process was complex
and posed significant challenges. The merger of a financial institution with a
commercial bank to create the country’s first universal bank had significant
implications for the entire financial system. It therefore involved extensive
dialogue with the Government and Reserve Bank of India. The merger also
posed the challenge of compliance with regulatory norms applicable to banks in
respect of ICICI’s assets and liabilities, particularly49 the reserve requirements.

This required resources of about Rs. 210.00 billion to be raised in less than six
months for investment in Government securities and cash reserves, in addition to
normal resource mobilization for ongoing business requirements. We leveraged
our strong retail franchise, including the distribution network acquired in the
merger of the erstwhile Bank of Madura Limited with ICICI Bank in fiscal 2001, to
grow our retail deposit base.

We also achieved significant success in securitizing loans and developing a

market for securitized debt in India. We also adopted proactive strategies to
minimize the duration of our Government securities portfolio, in order to mitigate
the interest-rate risk arising from the acquisition of a portfolio of about Rs. 180.00
billion in five months.

21
 3-

BANK HISTORY

22
 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

23
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.

24
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.

25
ICICI Venture :-

is one of the largest and most successful private equity firms in India with funds
under management in excess of USD 2 billion. ICICI Venture, over the years has
built an enviable portfolio of companies across sectors including Life Sciences,
Information Technology, Media, Manufacturing, Retail, Financial Services, and
Real Estate thereby building sustainable value. It has several “firsts” to its credit
in the Indian Private Equity industry. Amongst them are India’s first leveraged
buyout (Info media), the first real estate investment (Cyber Gateway), the first
mezzanine financing for a acquisition (Arch Pharsalus), the first ‘royalty-based’
structured deal in Pharma Research & Development (Dr Reddy’s Laboratories -
JV) and the first fund level secondary transaction (Caller Capital).

26
 4-

BOARD OF

DIRECTORS

&

COMMITTEES

27
 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

28
BOARD OF COMMITTEES:-

AUDIT COMMITTEE

Mr. Sridar Iyengar

Mr. Narendra Murkumbi

Mr. M K Sharma

BOARD GOVERNANCE

Mr. N Vghul
CREDIT COMMITTEE
Mr. Anupam puri

Mr. M. K. Sharma

Mr.Mr. N. Vaghul
P.M.Shina
Mr. Narendra Murkumbi

Mr. M. K. Sharma

Mr. P. M. Shina

Mr. K.V. Kamath

29
 RISK COMMITTEE

Mr. N. Vaghul
SERVICE COMMITTEE
Mr. Sridar Iyengar
Mr. V. Prem Wasta
Mr. N. Vaghul
Mr. G. Subrahmanyam
Mr. Narendra Mukhambi
Mr. K.V. Kamath
Mr. M.K Sharma
Mr. K.V. Kamath

30
 COMMITTEE OF DIRECTOR’S

MR. K.V.Kamath
Mr. Madhabi Puri- Buch
Mr. sonjor Chatterjee
Ms. Chanda D. Kochhar
Mr. R. Vaidyanathan

5-

INTRODUCTION
OF
ORGANISATION

31
 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.

32
The Retail Banking Group comprises ICICI Bank’s 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 Bank’s 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

BUSINESS REVIEW:-

Retail Banking

The retail business is the key driver of ICICI Bank’s 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

33
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 Bank’s 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
Bank’s 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, commercial vehicles and
construction equipment financing, consumer durable loans, personal loans and
credit cards.

In the mortgages business, we expanded our reach to more than 140 locations
across the country. We were the first to introduce adjustable rate home loans,
with interest rates linked to a floating prime lending rate. This product received
excellent response from customers across the country and was a key driver of
growth in the mortgages segment. It also enabled us to price loans competitively
and achieve better asset-liability management. Other products and product
variants introduced this year included loans against existing property as well as
several value-added features – retail property services and home insurance
policies bundled with the loan.
34
During fiscal 2002 we emerged as a leading player in the mortgages business.
During fiscal 2002 we consolidated our position as clear market leaders in
automobile loans. We expanded our distribution network to 145 cities and towns
across the country. The key drivers of growth were the strength of our corporate
relationships with leading automobile manufacturers, strong distribution capability
and customer service focus. We rapidly increased our presence in other
segments as well. We expanded our two-wheeler business to over 140 locations.

ICICI Bank partners manufacturers in distributing their products and therefore

enjoys preferred status with them. We were able to offer competitive products to
our customers by leveraging economies of scale resulting from the rapid growth
in operations. In the credit cards business we expanded our distribution to 36
locations. The total number of cards in force increased by 450,000 to about
650,000 at the end of fiscal 2002. During the year we launched two co-branded
cards, with Hindustan Petroleum Corporation Limited.

Corporate Banking

ICICI Bank’s 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

35
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 customer-level 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.

The enhanced capital base consequent to the merger will significantly increase
ICICI Bank’s ability to leverage its strong corporate relationships and provide
non-fund-based facilities and
trade finance services to its corporate clients. ICICI Bank is leveraging
technology to set up centralized processing facilities to process large transaction
volumes, thereby benefiting from economies of scale. A dedicated Corporate
Operations & Technology Group has been set up for developing and managing
back-office processing and delivery capabilities.

Treasury
36
The principal responsibilities of the Treasury include management of liquidity and
exposure to market risks, mobilization of resources from domestic and
international financial institutions and banks, and proprietary trading. Additionally,
the Treasury is leveraging its strong relationships with financial sector players to
provide a wide range of banking services in addition to its liability products. The
Treasury is also responsible for ICICI Bank’s capital markets and custodial
services operations.

During fiscal 2002, the focus was on the challenge of meeting regulatory reserve
requirements on ICICI’s liabilities prior to the merger. This posed the dual
challenge of raising resources for meeting the reserve requirements and
managing the interest-rate risk arising from the acquisition of Government
securities aggregating about Rs. 180.00 billion in an environment of low interest
rates. Yields on Government securities reached historic lows during 2001- 2002
as a consequence of the easy liquidity environment and RBI’s soft-interest-rate
policy.

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

37
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.

Infrastructure Sector:-

The infrastructure sector has not witnessed the anticipated growth, mainly due to
policy-level issues and delay in closure of various projects. While there were few
opportunities in the power sector, the telecom and road sectors witnessed
considerable activity. Guarantees to Department of Telecommunications on
behalf of various telecom companies for basic, cellular and national and
international long-distance licenses presented a significant non-fund based
business opportunity. We have also capitalized on opportunities in the road
38
sector, in both annuity and toll-based projects, including lead arranger mandates
for four road projects of National Highway Authority of India (NHAI).

The pace of growth in the road sector is expected to increase both due to NHAI’s
National Highway Development Programmed and the larger state-level projects.
Going forward, we expect ports and urban infrastructure sectors, in addition to
telecom and roads, to provide significant business opportunities. Corporatization
has already been initiated for five out of twelve major ports. Ports would also
require significant expansion and modernization of facilities. We were appointed
lead arrangers for a chemical port terminal project. The power sector is also
expected to pick up with opportunities in the privatization of distribution, financial
closure of select private projects with competitive tariffs, capacity additions in the
public sector and its own reform and restructuring. We provided advisory
services to the Ministry of Power, developing a comprehensive blueprint for
private sector participation in hydropower. The Managing Director & CEO was a
member of the Distribution Policy committee which submitted a report improving
efficiency in power distribution in the country.

Manufacturing Sector

Fiscal 2002 saw few new projects in the manufacturing sector on account of
lower economic growth and existing over-capacities in several commodities. Our
focus in this sector is on projects sponsored by entities that have proven ability to
commit the required financial resources and implement projects successfully
within planned time-frames. We are also implementing tighter security measures,
such as security interests in project contracts and escrow accounts to capture
cash flows. We also believe that there is significant scope for consolidation in

39
several segments in the manufacturing sector, which presents opportunities for
structuring and syndicating acquisition financing.

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 Bank’s 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

40
companies. SAMG’s 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.

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

41
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,

42
personal financial services for NRIs and international alliances to support
domestic businesses.

6- CREDIT RATING:-
During the year, ICICI became the first Indian company to be rated higher than
the sovereign rating for India by Moody’s Investor Service, when its senior and
subordinated long term foreign currency debt was rated Ba1 i.e. one notch above
the sovereign rating for India. The same rating has been assigned to ICICI Bank
post-merger. ICICI Bank’s credit ratings as per various credit rating agencies

43
(including ratings assigned to debt instruments issued by ICICI now transferred
to ICICI Bank on merger) are given below:

AGENCY REATING

Moody’s Investor Service (Moody’s)

Foreign currency debt .....................................................Ba1

Foreign currency deposits ...............................................Ba3

Standard & Poor’s (S&P) .................................................... BB

Credit Analysis & Research Limited (CARE) ............... CARE

………………………………………..AAA

Investment Information and Credit Rating Agency (ICRA)

…………………………..................... LAAA
RISK
7-
MANAGEMENT

44
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

45
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 sub-groups: Credit Risk Rating & Industry
Analysis, Credit Policies & Credit Audit, Risk Analytics, Internal Audit,
Subsidiaries Audit and Retail Risk.

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
46
for each borrower and also at the portfolio level. ICICI Bank has a standardized
credit approval process, which includes a well-established 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.

.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
Bank’s market risk arises principally from interest-rate risk. ICICI Bank’s

47
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 organization’s
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.

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

48
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.

49
INFORMATION TECHNOLOGY:-

ICICI Bank continues to leverage information technology as a strategic tool for its
business operations, to gain competitive advantage by offering customer
convenience and improved service as well as improving productivity and

50
efficiency. ICICI Bank’s technology strategy emphasizes enhanced level of
customer services through 24x7 availability, multi-channel banking and straight
through processing, and cost efficiency through optimal use of electronic
channels, wider and focused market reach and opportunities for cross-selling.
The Technology Management Group (TMG) is the focal point for the ICICI
Group’s technology strategy and Group-wide technology initiatives. This group
reports directly to the Managing Director & CEO. ICICI Bank is focusing on
harnessing technology for integrating diverse products by unifying the enterprise
IT architecture. In January 2002, we commenced implementation of an
Enterprise Application Integration initiative in a phased manner. This initiative is
aimed at providing a single customer view leading to increased customer
satisfaction and employee productivity.

The core banking software was upgraded during the first half of fiscal 2002. New
initiatives include, among others, sending customer statements in electronic form
over e-mails, facilities to invest in mutual funds through a bank account which
could be operated across the delivery channels (ISWEEP) and integration of
depository account of corporates with their bank account to facilitate on-line
trading in debt instruments. Centralization of branch databases has permitted
centralization of cheque-book issuance, account-opening processing, statement
generation and printing, ATM card issue and generation of MIS and reports,
thereby releasing significant resources at branches.
HUMAN RESOURCES:-

ICICI Bank views its human capital as a key source of competitive advantage.
Consequently the development and management of human capital is an
essential element of our strategy and a key management activity. Human
resources management in fiscal 2002 focused on smooth integration of the
51
employees and human resource management systems in the context of the
merger, as well as on continuous improvement of recruitment, training and
performance management processes. The process of integration involved
defining the organizational structure of the merged entity,
people placement in various positions across the business and corporate groups,
and integration of the grade and remuneration structure for the employees of the
four entities. The organizational structure was announced in February 2002 and
became effective on May 3, 2002. The people placement process was based on
appropriate competency profiling tools and matching employee profiles to job
specifications.

The grade integration process has also been successfully completed, using job
evaluation techniques. While ICICI Bank is India’s second-largest bank, it had
just over 7,700 employees at March 31, 2002, demonstrating our unique
technology-driven, productivity-focused business model. The recruitment process
has been streamlined and a uniform recruitment policy and process implemented
across the merged organization. Robust ability-testing and competency-profiling
tools are being used to strengthen the campus recruitment process and match
the profiles of employees to the needs of the organization. ICICI Bank continues
to be a preferred employer at leading business schools and higher education
institutions across the country, offering a wide range of career opportunities
across the entire spectrum of financial services.

ORGANIZATIONAL EXCELLENCE:-

ICICI Bank recognizes the importance of organizational excellence in its

business. Developing and deploying world-class skills in a variety of areas such

52
as technology, financial engineering, transaction processing and portfolio
management, credit evaluation, customer segmentation and product design, and
building and maintaining deep and enduring relationships of trust
with our retail and wholesale customers are essential elements of our strategy.
Different businesses across the ICICI group have over the past few months used
successfully the Six Sigma methodology to focus on customer satisfaction and
enhanced efficiency in operations.

Application of Six Sigma techniques in regional processing centres, branch

layout and design, and the home finance and demat services businesses have
reduced turnaround time and significantly improved operational efficiency. In
recognition of the critical importance of excellence in internal processes and
delivery to customers, we have set up an Organizational Excellence Group
headed by a Senior General Manager reporting to the Managing Director & CEO.
This group will be responsible for institutionalization of quality initiatives, including
Six Sigma, and for building the skills necessary for implementing and
accelerating quality initiatives, reporting to the management the progress and
value generated from these initiatives and replicating the successes across ICICI
Bank as well as group companies.

COMMUNITY DEVELOPMENT:-
ICICI Bank believes that, as one of India’s largest business enterprises and one
of the largest participants in the financial system, it needs to make focused
efforts towards contributing to economic and social development in India. This

53
complements our business operations of providing financial services to
government, industry and individual customers. ICICI Bank’s community
development initiatives are canalized through a dedicated not-for-profit group, the
Social Initiatives Group (SIG), which seeks to identify and support cost-effective,
time bound, scalable and replicable initiatives designed to improve the capacity
of the underprivileged to participate in the larger economy. ICICI Bank supports
initiatives that have both near and long-term impact. In this context, health,
education and availability of financing have been identified as three key areas.
Within these, infant health at birth, elementary education and micro-financial
services has been identified for focused attention.

Infant Health at Birth

The objective of initiatives in this area is to maximize the proportion of infants

born health We seek to support research in nutritional deficiencies that cause
infant mortality and strategies to improve nutrition, particularly female nutrition.
54
Some of the key initiatives we supported in this area during fiscal 2002 were a
“Maternal Nutrition Workshop” at Aurangabad organized by SNEHA–India, a
three-year community-based action research project on preventing iron
deficiency in mothers in conjunction with Topical Medical College and B.Y.L. Nair
Charitable Hospital in Mumbai and “Mumbai Maternal Diet Study” undertaken by
Medical Research Council, University of Southampton, UK in conjunction with
SNEHA-India and the Centre for the Study of Social Change, Mumbai

Elementary Education:-

The objective of initiatives in this area is to maximize the number of 14-year-olds

who have a basic level of elementary education. Pratham, a non-governmental
organization in Mumbai, which we have partnered for seven years, has
developed innovative strategies for motivating children to enrol in and complete
primary school. We support Pratham’s pre-school, remedial education and bridge
course programmes, as well as related research studies. Some of the other
initiatives we supported in this area during fiscal 2002 were the Jana Sanskrit
Centre for Theatre of the Oppressed in rural West Bengal, which uses theatre to
enable children to make an easy transition to formal school, and Digantar, a
voluntary organization based in Jaipur that runs three village schools.

Micro-financial Services:-

Participation of the poor in the larger economy necessitates a transition from

being passive observers to active participants in the growth process. Micro-
financial services therefore include those financial services that enable the poor
55
to reduce their economic vulnerability and participate in the growth process. The
objective of our initiatives in micro-finance is to maximize access to basic
financial services – basic banking (savings and cash management),
Finance (debt, equity and leasing) and insurance (life and health). ICICI’s Rural
Micro-Banking Group is engaged in delivering micro-finance to self-help groups
of rural women. It has also developed models for delivering micro-finance and
other banking facilities to groups at centers without branches.

PUBLIC RECOGNITION:-

During fiscal 2002, we received several prestigious awards in recognition of our

business strategies, customer services, human resources practices and
transparency in financial reporting, including:

56
 The title “Best Retail Bank in India” by Asian Banker for the second
consecutive year;

 Asian Business Leader Award (organized by CNBC Asia-Pacific and TNT)

awarded to

 K. V. Kamath, Managing Director & CEO;

 Asian Banker’s Product Innovation Award for “Kid-e-bank” account;

 Among the top three in a “Best Employer” study amongst the students of
the best business schools in India conducted by ORG-MARG;

 Indian Express Marketing Excellence Award for the “Most Recalled

Advertisement on Television”; and

 “Best Presented Accounts Award” in the category of banks and financial

institutions from the Institute of Chartered Accountants of India, for the third
consecutive year.

8- Organizational Chart of ICICI BANK:-

57
 CEO

M.D.

V.P.

A.V.P. A.V.P.

B.M. B.M.

ASS.B.M. ASS.B.M. ASS.B.M.

S.M.

ASS. S.M.

Product Detail:-

MAIN RETAIL BANKING SERVICES:

Deposits

58
  Current Account
 Savings Account
 Term Deposits

Investment Services

 Demat
 Mutual Funds
 Bank assurance

Convenience Banking

 Net Banking
 Phone Banking
 Home Banking
 ATM Network
 Global Debit Card
 Mobile Banking & Alerts

Loans

 Personal Loans
 Home Finance
9-

59
 PRODUCTS
&
SERVICES

PRODUCTS AND SERVICES:-

BANKING ACCOUNT
60
ICICI bank offers a wide rang 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 any
thing 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.

SAVINGS ACCOUNT:-

61
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.

 Debit-cum-ATM Card
 Money Multiplier Facility
 Internet Banking
 Customer Care
 Mobile Banking
 Standing Instructions
 Nomination facility

FIXED DEPOSITS:-
62
ICICI bank has a set of choice of investment plans attached to fixed deposit. You
get a wide range of tenures along with auto renewal facility on maturity of
deposits. You can open term deposit with nominal amount of Rs 1000/- only.
Bank has a loan facility against deposit. The re-investment plans on fixed
deposits are lucrative as re-investment fixed deposit rates do not change in fact
works like a recurring debit account transaction.

Fixed Deposit Articles

 Credit profile and its effect on loan rates in India.

 Fixed Deposits: Safest instrument to invest
 Complete guide to TDS on fixed deposits in India
 Carnival of Indian Personal Finance Bogs
 Medical Insurance: Save tax along with health
 Tax saver fixed deposits in India earn you more
 Things to know before retirement
 J&K Bank raises PLR

INSURANCE OF ICICI BANK:-

63
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:

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

Icici bank has made buying a policy easier for you. Now you can instantly buy a
policy online in 10 minis flat. With 0 % EMI option and no paperwork options at
your service, ICICI insurance policies are surely talk of the town. Just select a
particular policy, get complete details on it and apply online through ICICI Bank
Online services for the policy. Below we provide you details on the contact
options available.

64
 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:

 Guidance through out the process

 Home loan amounts suited to your needs
 Home Loan tenure up to 20 years
 Simplified Documentation
 Doorstep Service
 Attractive interest rates

65
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.

66
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.

67
 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 top-rated 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.

68
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.

TRAVEL CARD:-

69
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.

MOBILE BANKING:-

70
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 pre-paid 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

71
INVESTMENT PRODUCTS :-
Along with deposit product and loan offering, icici bank assist you to manage its.
Fiancé 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.
TAX SAVING SOLOUTION:-
72
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 24-Carat 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 returns.

73
ICICI BANK SUBSIDIARY COMPANIES:-

Introduction

ICICI Bank is India's second-largest bank. ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers
through a variety of delivery channels and through its specialised 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 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. ICICI Bank's equity shares are
listed in India on Bombay Stock Exchange and the National Stock Exchange of
India Limited and its American Depositary Receipts (ADRs)

74
Domestic subsidiaries:-

ICICI Brokerage Services Limited

ICICI Distribution Finance Private Limited

ICICI Home Finance Company Limited

ICICI Investment Management Company Limited

ICICI Lombard General Insurance Company Limited

ICICI Prudential Life Insurance Company Limited

ICICI Trusteeship Services Limited

ICICI Venture Funds Management Company Limited

Prudential ICICI Asset Management Company Limited

ICICI Securities Limited

Prudential ICICI Trust Limited

International subsidiaries:-

ICICI Bank Canada

ICICI Bank Eurasia Limited Liability Company

ICICI International Limited

ICICI Securities Holdings Inc

ICICI Securities Inc

75
KEY GROUPS OF COMPANY;--

76
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% .

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.

77
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

ICICI Prudential Asset Management :-

ICICI Prudential 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

78
transaction acceptance spread across the country.

ICICI Venture :-

is one of the largest and most successful private equity firms in India with funds
under management in excess of USD 2 billion. ICICI Venture, over the years has
built an enviable portfolio of companies across sectors including Life Sciences,
Information Technology, Media, Manufacturing, Retail, Financial Services, and
Real Estate thereby building sustainable value. It has several “firsts” to its credit
in the Indian Private Equity industry. Amongst them are India’s first leveraged
buyout (Infomedia), the first real estate investment (Cyber Gateway), the first
mezzanine financing for a acquisition (Arch Pharmalabs), the first ‘royalty-based’
structured deal in Pharma Research & Development (Dr Reddy’s Laboratories -
JV) and the first fund level secondary transaction (Coller Capital).

79
KEY FINANCIAL INDICATION:--
The reported high and low closing price and volume of equity share of icici bank
traded during fiscal 2009. on BSC and NSC are set out in the following.

Capital structure:--

Paid Up
From To Class Of Authorized Issued Paid Up
Face Paid Up Capital
Year Year Share Capital Capital Shares (Nos)
Value
Equity
2008 2009 1,275.00 1,113.25 1113250642 10 1,113.25
Share
2007 Equity
2008 1,275.00 1,112.69 1112687495 10 1,112.69
Share
Equity
2006 2007 1,000.00 899.27 899266672 10 899.27
Share
Equity
2005 2006 1,000.00 153.84 153844503 10 153.84
Share
Equity
2005 2006 1,000.00 889.82 889823901 10 889.82
Share
Equity 350000000
2004 2005 1,550.00 616.39 10 350.00
Share
Equity
2004 2005 1,550.00 616.39 616391905 10 616.39
Share
Equity
2003 2004 1,550.00 613.02 613021301 10 613.02
Share
Equity
2001 2002 300.00 220.36 220358680 10 220.36
Share
Equity
2000 2001 300.00 196.82 196818880 10 196.82
Share
Equity
1999 2000 300.00 196.82 196818880 10 196.82
Share
Equity
1997 1999 300.00 165.00 165000700 10 165.00
Share
Equity
1995 1997 300.00 150.00 150000700 10 150.00
Share
Equity
1994 1995 300.00 150.00 150000000 7 105.00
Share
Equity
1994 1995 300.00 150.00 700 10 -
Share

80
Awards & Recognitions:-

ICICI Bank, 2009

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

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

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

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

 Financial Express at its FE India's Best Banks Awards, honoured Mr. K.V.
Kamath, Chairman with the Lifetime Achievement Award , July 25, 2009.

 ICICI Bank won Asset Triple A Investment Awards for the Best Derivative
House, India. In addition ICICI Bank were Highly commended ,

81
 Local Currency Structured product, India for 1.5 year ADR GDR linked
Range Accrual Note., July 2009.

 ICICI bank won in three categories at World finance Banking awards on

June 16, 2009 .
   •Best NRI Services bank
   • Excellence in Private Banking, APAC Region
   • Excellence in Remittance Business, APAC Region

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

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

 An ICICI Bank NRI service wins the “Excellence in Business Model

Innovation Award” in the eighth Asian Banker Excellence in Retail Financial
Services Awards Programmers’

 ICICI Bank's Organizational Excellence Group was recently awarded ISO

9001:2008 certification by TUV Nord. The scope of certification comprised
processes around consulting and capability building on methods of quality
& improvements.

10-

82
 RESEARCHS
&
METHODOLOGY

83
 RESEARCHES AND METHODLOGY

TITLE OF THE STURDY

To study the Financial Services / sturdy of analysis of financial statement of icici

bank.

DURATION OF THE PROJECT

In Duration to study of financial services and doing the study of financial

statement of icici bank in jaipur two months summer training in many project. and
doing the study of balance sheet , profit & loss account , ratio analysis and etc.
and made a project report of financial statement.

11-
84
OBJECTIVE

85
 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.

86
 12-

SCOPE

87
 SCOPE OF STUDY

The survey was conducted amongst the leading industrialists, charted accountants,
service persons and businessmen in Jaipur for awareness of banking services. This
project helped in gaining knowledge in finance field.

This project helped as medium to have direct contact in the market and financial
services.

 Theoretical knowledge substituted with practical exposure helped in gaining

an in depth knowledge about the subject matter.
 This project helped in understanding the prospective of banking services, and
financial services.
 These projects helped in gaining market condition mean which type of
services sold by various banks.
 Provides all the crucial information on ICICI Bank required for business and
competitor intelligence needs

 Data is supplemented with details on ICICI Bank history, key executives,
business description, locations and subsidiaries as well as a list of products
and services and the latest available statement from ICICI Bank

88
 VISION AND MISSION OF ICICI BANK

VISION:--

To be the leading provider of financial services in India a major global bank.

MISSION:--

We will leverage our people, technology, speed and financial capital.

 Be the banker of first choice for our customer by delivering high quality,
world class product and services.

 Expand the frontier of our business globally.

 Play a proactive role n the full realization of India’s potential.

 Maintain high standard of governance and ethics.

 Create value for our stakeholder.

89
LIMITATIONS OF STUDY:-

One major problem with the SWOT analysis is that while it emphasizes the
importance of the four elements associated with the organizational and
environmental analysis, it does not address how the company can identify the
elements for their own company.

Many organizational executives may not be able to determine what these

elements are, and the SWOT framework provides no guidance. For example,
what if a strength identified by the company is not truly a strength? While a
company might believe its customer service is strong, they may be unaware of
problems with employees or the capabilities of other companies to provide a
higher level of customer service.

Weaknesses are often easier to determine, but typically after it is too late to
create a new strategy to offset them. A company may also have difficulty
identifying opportunities. Depending on the organization, what may seem like an
opportunity to some, may appear to be a threat to others. Opportunities may be
easy to overlook or may be identified long after they can be exploited. Similarly, a
company may have difficulty anticipating possible threats in order to effectively
avoid them.

While the SWOT framework does not provide managers with the guidance to
identify strengths, weaknesses, opportunities, and threats, it does tell managers
what questions to ask during the strategy development process, even if it does
not provide the answers. Managers know to ask and to determine a strategy that
will take advantage of a company's strengths, minimize its weaknesses, exploit
opportunities, or neutralize threats.

90
 13- FACTS & FINDINGS:--
Management Discussion & Analysis:

India’s' largest private sector bank in market capitalization and second largest
overall in terms of assets. Bank has total assets of about USD 100 billion (at the
end of March 2008), a network of over 1,399 branches, 22 regional offices and
49 regional processing centers, about 4,485 ATMs (at the end of September
2008), and 24 million customers (at the end of July 2007). ICICI Bank offers a
wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and specialised subsidiaries
and affiliates in the areas of investment banking, life and non-life insurance,
venture capital and asset management. (These data are dynamic.) ICICI Bank is
also the largest issuer of credit cards in India. .

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.

91
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 well-regulated 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

 The ICICI Bank stock is down 37.47% from its recent high of Rs 551.45 on
1 October 2008.

 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.

 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.

 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.

 The stock had underperformed the market over the past one month till 8
October 2008, declining 37.08% as compared to the Sensex’s decline of
24.20%. It had also underperformed the market in the past one quarter,
falling 23.63% as compared to the Sensex’s decline of 15.14%.
92
 India’s largest private sector bank by market capitalisation has an equity
capital of Rs 1113.23 crore. Face value per share is Rs 10.

 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.

 The bank had earlier on 1 October 2008 assured investors that it was well-
capitalised.

 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.

 ICICI Bank UK PLC has zero exposure to US subprime-credit, it had added

in an announcement made on 29 September 2008.

 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%.

93
 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.

 ICICI Bank provides retail-banking, corporate banking, cash management

and treasury management services.

ICICI Bank facing no liquidity crisis: Chanda Kochhar

 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.

 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.”

94
 14-

ANALYSIS

95
 COMPRATIVE INCOME STATEMENT
TREND ANALIYSIS
SUMMARISED PROFIT & LOSS ACCOUNT
(ON 31 MARCH, 2009)

* Profit before tax for the year ended March 31, 2009 (FY2009) was Rs. 5,117
crore (US$ 1,009 million), compared to Rs. 5,056 crore (US$ 997 million) for the
year ended March 31, 2008 (FY2008)

Profit after tax for FY2009 was Rs. 3,758 crore (US$ 741 million) compared to
Rs. 4,158 crore (US$ 820 million) for FY2008 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
FY2008 to Rs. 8,367 crore (US$ 1,650 million) for FY2009. While the advances
declined marginally year-on-year, the net interest income increased due to
improvement in net interest margin from 2.2% in FY2008 to 2.4% in FY2009.

96
 PERIOD ENDING 31-Mar-09 31-Mar-08 31-Mar-07
Total Revenue 15,073,324   9,784,544   5,796,246  
Cost of Revenue -  2,865,009   534,980  
Gross Profit 15,073,324   6,919,535   5,261,266  

Operating Expenses
Research Development -  -  - 
Selling General and Administrative 6,683,561   4,020,507   2,141,589  
Non Recurring -  -  - 
Others 1,438,621   983,065   150,285  
Total Operating Expenses -  -  - 

Operating Income or Loss 6,951,141   1,915,963   2,969,392  

Income from Continuing Operations

Total Other Income/Expenses Net 193,955   135,091   (1,361,229)
Earnings Before Interest And Taxes 7,249,442   2,011,090   1,634,028  
Interest Expense 6,467,511   1,200,407   932,053  
Income Before Tax 781,931   810,683   701,975  
Income Tax Expense (82,479) 160,682   156,779  
Minority Interest 71,024   29,264   4,740  
Net Income From Continuing Ops 831,089   719,229   524,071  

Non-recurring Events
Discontinued Operations -  -  - 
Extraordinary Items -  -  - 
Effect Of Accounting Changes -  -  - 
Other Items -  -  - 

Net Income 831,089   719,229   524,071  

Preferred Stock And Other Adjustments -  -  - 

97
 Net Income Applicable To Common Shares $831,089   $719,229   $524,071  

Profit & loss account:-

 • Profit before tax increased 31% to Rs. 1,205 crore (US$ 252 million) for
the quarter ended June 30, 2009 (Q1-2010) from Rs. 922 crore (US$ 192
million) for the quarter ended June 30, 2008 (Q1-2009).

 Profit after tax increased 21% to Rs. 878 crore (US$ 183 million) for Q1-
2010 from Rs. 728 crore (US$ 152 million) for Q1-2009.

 The net interest margin was maintained at 2.4%. Net interest income for
Q1-2010 was Rs. 1,985 crore (US$ 414 million) compared to Rs. 2,090
crore (US$ 436 million) for Q1-2009. The decrease in net interest income
was mainly due to the decrease in advances by 11.6%.

 The Bank earned treasury income of Rs. 714 crore (US$ 149 million) in Q1-
2010. The Bank positioned its treasury strategy to benefit from the
opportunities in equity and fixed income markets during the quarter.

 • Fee income for Q1-2010 at Rs. 1,319 crore (US$ 275 million) was
maintained at about the same level as for the quarter ended March 31,
2009 (Q4-2009). The lower level of fee income compared to Q1- 2009 was
due to reduced investment and mergers & acquisition activity in the
corporate sector and lower level of fees from distribution of retail financial

98
 products, reflecting the continued impact of the adverse global economic
conditions on the operating environment.

COMPRATIVE FINANCIAL STATEMENT

TREND ANALIYSIS
SUMMARISED BALANCE- SHEET
(ON 31 MARCH, 2009)

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, 2009,
compared to Rs. 244,431 crore (US$ 48.2 billion) at March 31, 2008. 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-
2009, total deposits increased by Rs. 9,283 crore (US$ 1.8 billion), of which Rs.
99
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,

PERIOD ENDING 31-Mar-09 31-Mar-08

Assets
Current Assets
Cash And Cash Equivalents 3,933,380   11,377,498  
Short Term Investments 2,833,468   - 
Net Receivables 1,093,513   - 
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
79,575,131   103,390,810  
927,631   1,174,267  
32,673   15,826  
-  -  All
-  -   number
s in
4,345,510   6,269,071   thousan
766,839   710,819   ds

Total Assets 93,508,144   122,938,290  

Liabilities
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
-  3,785,366  
3,290,013   517,835  
50,538,160   69,522,791  

Total Current Liabilities -  - 

Long Term Debt 19,043,242   26,335,179  
Other Liabilities 11,084,149   10,840,389  
Deferred Long Term Liability Charges -  - 
Minority Interest 175,728   183,529  
100
Negative Goodwill
Total Liabilities
Stockholders' Equity
Misc Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity
Total Stockholder Equity
Net Tangible Assets
View: Annual Data |
-  - 
84,131,293   111,185,088  
-  - 
-  - 
-  - 
214,865   367,132  
353,773   - 
-  - 
-  11,386,070  
8,808,213   - 
9,376,852   11,753,202  
$9,344,179   $11,737,377  
101
 14.1-

RATIO ANALYSIS

102
RATIO ANALYSIS OF ICICI BANK (2008-2009) :-
31-Mar-
As on 31-Mar-09 31-Mar-08
07

Profitablility
Interest Income/Total Income (%) 80.35 77.75 76.05

Non Interest Income/Total Income (%) 19.65 22.25 23.95

Reported Net Profit/Total Income (%) 9.71 10.50 10.75

Net Interest Income/Total Income (%) 21.62 18.45 19.49

Net Interest Margin (%) 3.83 3.24 2.99

Return Related
ROE (%) 7.53 8.88 12.61

ROA (%) 0.99 1.04 0.90

Leverage & Capital Measures

Customer loans/deposits (%) 99.98 92.30 81.83

Investments/Deposits (%) 47.20 45.60 39.59

Total Liabilities/Networth 7.66 8.61 14.21

Growth (%)
Growth in Interest Income 0.99 39.98 53.75

Growth in Interest Expenses -- 43.56 70.45

Growth in Employee cost -- 28.59 49.38

Growth in PAT -- 33.68 22.45

Growth in Deposits -- 6.04 39.63

Growth in Borrowings 2.55 28.08 33.06

Per Share
Book Value Per Share (Rs) 444.90 417.50 269.70

Earnings Per Share (Rs) 33.76 37.37 34.58

103
Dividend Per Share (Rs) -- -- --
 Analysis and Interpretation;--
Sturdy 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.

104
 Profit and Loss Account:-
An example profit and loss account is provided below:

Revenue 12,500 10,000

Cost of Sales 7,500 6,000

     

Gross Profit 5,000 4,000

Gross profit margin (gross profit / revenue) 40% 40%

     

Operating Costs    

Sales and distribution 1,260 1,010

Finance and administration 570 555

Other overheads 970 895

Depreciation 235 210

Total Operating Costs 3,035 2,670

     

Operating Profit (gross profit less operating costs) 1,965 1,330

Operating profit margin (operating profit / revenue) 15.7% 13.3%

     

Interest (450) (475)

     

Profit before Tax 1,515 855

     

Taxation (455) (255)

STUDY OF BALANCE SHEET;-

105
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.

Example Balance Sheet:-

106
Set out below is a summarized balance sheet for Tesco plc to illustrate the main
elements of the balance sheet.

ITEMS 24 February 2001 26 February 2000

 
   

FIXED ASSETS 10,038 8,527

     

Current Assets 1,694 1,342

Short-term creditors (4,389) (3,487)

     

NET CURRENT LIABILITIES (2,695 (2,145)

     

Total Assets less Current Liabilities 7,343 6,382

     

Long-term creditors (1,927) (1,565)

Provisions (24) (19)

     

TOTAL NET ASSETS 5,392 4,798

     

Equity shareholders' funds 5,356 4,769

Minority interests 36 29

Total Capital Employed 5,392 4,798

Learn Different types of assets & liabilities:-

107
Definition of Assets

An asset is any right or thing that is owned by a business. Assets include land,
buildings, equipment and anything else a business owns that can be given a
value in money terms for the purpose of financial reporting.

Definition of Liabilities

To acquire its assets, a business may have to obtain money from various
sources in addition to its owners (shareholders) or from retained profits. The
various amounts of money owed by a business are called its liabilities.

Long-term and Current

To provide additional information to the user, assets and liabilities are usually
classified in the balance sheet as:

- Current: those due to be repaid or converted into cash within 12 months of the
balance sheet date;

- Long-term: those due to be repaid or converted into cash more than 12 months
after the balance sheet date;

Fixed Assets:-
108
A further classification other than long-term or current is also used for assets. A
"fixed asset" is an asset which is intended to be of a permanent nature and which
is used by the business to provide the capability to conduct its trade. Examples of
"tangible fixed assets" include plant & machinery, land & buildings and motor
vehicles. "Intangible fixed assets" may include goodwill, patents, trademarks
and brands - although they may only be included if they have been "acquired".
Investments in other companies which are intended to be held for the long-term
can also be shown under the fixed asset heading.

Balance sheet Structure:--

Basis of Balance sheet

Assets = Liabilities +Equity

The Balance Sheet Structures is Just in Examples. It does not show all kind of
assets, equity and liabilities but it show the most usual ones. It could be a
consolidated balance sheet monetary values in financial services.

STUDY OF CASH FLOW STAEMENT:-

MEANING
109
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.

STUDY OF FINANCIAL STATEMENT:-

110
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.

 Horizontal Analysis

 Vertical Analysis

 Ratio Analysis

111
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.
112
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.

 Leverage Ratios which show the extent that debt is used in a

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

113
Most account holder banks:-

PAETICULAR NO OF RESPONDENTSPERCENTAGE
SBBJ 12 23%
ICICI 8 15%
HDFC 5 9%
KOTAK MAHINDRA BANK 5 9%
IDBI 4 7%
BOB 5 9%
CTB 3 5%
PNB 3 5%
BOR 5 9%
OTHERS 5 9%

SBBJ
9% 22% ICICI
9%
5% HDFC
KOTAK
IDBI
5%
BOB
15%
CTB
9% 7% 9% PNB
9% BOR
OTHERS

 23% respondents have their account in SBBJ.

 15% respondents have their account in ICICI Bank.
 9% respondents have their account in Kotak, HDFC & other banks
also like UCO Bank, Citi Bank , OBC etc.
 7 % respondents have their account in IDBI.

114
Reason beyond the relationship with bank:-

Particulars Number of Respondents Percentage

Safety & 13 24%
convenience
Past relationship 20 36%
Salary account 12 22%
Offers 7 13%
Others 3 5%

SAFETY &
13% 24% CONVENIENCE
5%
PAST RELATIONSHIP

SALARY ACCOUNT
22%

36% OFFERS

OTHERS

 36% of total respondents have their account cause of past relationship.

 24% of total respondents have their account cause of safety and
convenience.
 22% of total respondents have their account cause of salary.
 13% of total respondents have their account cause of offers like high
interest rate and some extra benefits.
 5% of total respondents have their account due to other reasons like study
and loan services.

115
The banking services are using for:-
Particular No of respondents Percentage
Business within city 20 36%
From other cities of Raj. 11 25%
Business in other states 8 15%
Business in abroad 2 4%
For personal use 14 20%

25% business within city

36%
from other cities of Raj.

business in other states

4%
20% business in abroad
15%
for personal use

 36% of total respondents have their account for operate the business within
Jaipur city.
 25% of total respondents have their account for operate the business from
other cities of Rajasthan.
 20% of total respondents have their account for operate the business in
other states also like Assam, Karnataka, Gujarat and Maharashtra etc.
 4% of total respondents have their account for business in abroad.
 20% of total respondents have their account for personal use.

116
Satisfaction with ICICI services:-

Particular No of respondents Percentage

Yes 4 80%
No 1 20%

20%

Yes
No

80%

 80% of total Kotak customers are satisfied with its services.

 Remaining 20% of total kotak’s customers are not satisfied with its
services like AQB maintaining and lack of branches.

117
15-

SWOT
ANALYSIS

118
 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.

119
Opportunities:

 Opportunities of entering into major cities of Rajasthan like Kota, Ajmer,

and Bikaner etc.
 Scope of more ATM networks.
 Opportunities to increase its costumer 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
some what similar services.

120
 16-

CONCLUSION

121
 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 shareholder’s
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 I e . % change in 2007 and 2006 . 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 income , interest expanses , operating expanses operating profit is
increased but in mostly cases it is less then previous year.
Ratio analysis of financial statement show the bank’s currant 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 bank’s liquidity position is fair but not good because bank invest
in current account tham liquid assets.
 17-

SUGGESTIONS
 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 Subhiksha’s founder-head, R Subramanian, and a
rearrangement of lending schedules.
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 bank’s 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.
 18-

BIBLIOGRAPHY
 BIBLIOGRAPHY:-

1. Marketing Research - Thomas Kinnear

(An applied approach) & James R Taylor

2. Research Methodology - C.R.Kothari

3. Marketing Management - Philip Kotler

4. Marketing Research - Harper W. Boyd,

Jr. Ralph West Fall

Stanley F. Stasch

5. Service Marketing - Rampal

6. Marketing of Services KOTLER

7. Internet links - www.icicibank.com

www.google.com
www.scribd.com