PRESENTATION

ON

Financial Analysis of ICICI Bank

BY AKHIL MAHAJAN (2010MBE02)

Introduction
ICICI Bank - Industrial Credit and Investment Corporation of India. Founded 1955 Chairman K.V. Kamath Profit - 4,843.41 crore Employees - 35,000+ Network - 2,016 branches and about 5,219 ATM 2001 -Acquired Bank of Madura, Illanji Bank, 2005 Investitsionno-Kreditny Bank, 2010 merge with Bank of Rajasthan.

Financial Analysis
Profitability Solvency Liquidity Stability

Balance Sheet
Liabilities Capital and Liabilities Total Share Capital Equity Share Capital Preference Share Capital Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities Mar '09 1,463.29 Mar '10 1,114.89

1,113.29 350.00 48,419.73 49,883.02 218,347.82 67,323.69 285,671.51 43,746.43 379,300.96

1,114.89 0.00 50,503.48 51,618.37 202,016.60 94,263.57 296,280.17 15,501.18 363,399.72

Asset

Mar '09

Mar '10

Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block

17,536.33

27,514.29

12,430.23 218,310.85 103,058.31 7,443.71 3,642.09

11,359.40 181,205.60 120,892.80 7,114.12 3,901.43

Accumulated Depreciation Net Block

Total Assets

3,801.62
379,300.96

3,212.69
363,399.71

Balance Sheet shows that there is : Decrease in total asset by 4.2% Net advances decreased by 17.0% , due to increase in rupee Total investments increased by 17.3% due to an increase in investment in government and other approved securities. Equity share capital and reserves increased due to annual accretion to reserves out of profits Total deposits decreased by 7.5% due to conscious strategy of reducing wholesale deposits.

Profit & Loss account

Mar '09 Mar '10
Income Interest Earned Other Income Total Income 31,092.55 8,117.76 39,210.31 25,706.93 7,292.43 32,999.36

Expenses Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies

22,725.93 1,971.70 5,977.72 678.60 4,098.22 0.00 10,795.14 1,931.10

17,592.57 1,925.79 6,056.48 619.50 2,780.03 0.00 10,221.99 1,159.81

Total income is more than total expenses, but they decrease as compare to previous year. This time company has enough income which can be used for future operations.

Cash Flow Statement

Mar ' 10 Profit before tax 5,345.32 1,869.21 5,116.97 -14,188.49 Mar ' 09

Net cash flow-operating activity

Net cash used in investing activity

6,150.73

3,857.88
1,625.36 -8,074.57 38,041.13 29,966.56

Net cash used in fin. activity 1,382.62 Net inc/dec in cash and 8,907.13 equivlnt Cash and equivalnt begin of 29,966.56 year Cash and equivalnt end of 38,873.69 year

Increase in operating activity Due to decrease in current asset and increase in current liabilities

Increase in investing activities - More disposal of assets result in inflow of cash Decrease in finance activities depicts Proceeds from issue of share capital and repayment of bonds As there is huge increase in cash shows good financial condition of ICICI bank

Profitability Ratio

Accounting Ratios

oGross profit Ratio => 15.06% o Return On Investment = 7.79% oEPS = 36.10
Turnover Ratio

o Fixed asset turnover ratio = 4.60

Liquidity Ratio

oCurrent ratio = 1.94 oLiquid Ratio = 14.70

Solvency Ratio

oTotal debts ratio = 3.91

References
Books:Elements of book keeping, Juneja Chawla Saksena, Kalyani Publishers, 11th edition 2004, Chapter 10 and 11. Analysis of financial statement, Part B, Janardan Pillay,Ajith Book Centre, Chapter 11,12,14 and 16. Websites:http://money.rediff.com/companies/icici-bank-ltd/14030056/balancesheet http://en.wikipedia.org/wiki/ICICI_Bank Report:ICICI Bank Annual Report FY 2010

Thank You