A STUDY ON

CAPITAL BUDGETING
at ICICI,NELLORE.

UNDER THE GUIDENCE OF

SUBMITTED BY
Mr.K.BHARATH REDDY
Asst.professor,VICE PRINCIPAL

M.CHAITHANYA
14711E0070

INTRODUCTION
An efficient allocation of capital is the most

important finance function in modern times. It

involves decisions to commit firms funds to longterm assets. Such decisions are tend to determine
the value of company/firm by influencing its
growth, profitability & risk.
Investment decisions are generally known as
capital budgeting or capital expenditure decisions.
It is clever decisions to invest current in long term
assets expecting long-term benefits firms
investment decisions would generally include
expansion, acquisition, modernization and
replacement of long-term assets.

INDUSTRY PROFILE
Modern banking in India could be traced back to

the establishment of Bank of Bengal (Jan 2,

1809), the first joint-stock bank sponsored by
Government of Bengal and governed by the royal
charter of the British India Government.
It was followed by establishment of Bank of
Bombay (Apr 15, 1840) and Bank of Madras (Jul
1, 1843). These three banks, known as the
presidency banks, marked the beginning of the
limited liability and joint stock banking in India
and were also vested with the right of note issue.

COMPANY PROFILE
ICICI Bank Limited is a banking company. The Bank

is a financial services group providing a range of

banking and financial services including commercial
banking, retail banking, project and corporate
finance, working capital finance, insurance, venture
capital and private equity, investment banking,
broking and treasury products and services.
Its operating segments include Retail Banking,
Wholesale Banking, Treasury, Other Banking, Life
Insurance, General Insurance and Others.

OBJECTIVES OF THE
STUDY
To study the relevance of capital budgeting in

evaluating the project for project finance

To study the technique of capital budgeting for
decision- making.
To study the financial performance of the
company.
To make suggestion if any for improving the
financial position if the company.
To understand the practical usage of capital
budgeting techniques

NEED OF THE STUDY

Capital budgeting decisions are the

investment decisions of a firm are generally

known as the capital budgeting, or capital
expenditure decisions.
A capital budgeting decision may be defined
as the firms decision to invest in current
funds most efficiently in the long term assets
in anticipation of an expected flow of benefits
over a series of years.

SCOPE OF THE STUDY

Capital budgeting requires firms to account for

the time value of money and project risk, using

a variety of more or less formal techniques.
Capital budgeting decisions affect the
profitability in terms of interest of the firm. They
also have a bearing on the competitive position
of the enterprise. Its a diversification burden
Capital investment involves cost and the
majority of the firms have scarce capital
resources.

RESEARCH
METHODOLOGY
Primary Data
In this study it is gathered through interviews with
concerned officers and staff, either individually or
collectively, sum of the information has been verified
or supplemented with personal observation
conducting personal interviews with the concerned
officers of finance department of ICICI
Secondary Data

The secondary data was collected from

already published sources such as, pamphlets of
annual reports, returns and internal records, reference
from text books and journals relating to financial
management.