A study on Financial Performance of ICICI Bank with special reference to loans and Deposits

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Published on September 1, 2016

Author: ShivashakthiVanniyar

Source: slideshare.net

1. “A STUDY ON FINANCIAL PERFORMANCE OF ICICI BANK WITH SPECIAL REFERENCE TO LOANS AND DEPOSITS”

2. Company profile Company Name : ICICI Bank Founded : June 1994, Industry : Banking, Financial Services Established At : Vadodara Headquarters : Mumbai, Maharashtra, India Products : Credit cards, corporate banking, finance .Etc. No of branches : 4,079 No ATMs : 13,449 No. of Employees : 67,857 Key people : Mr. M. K. Sharma (Chairman) Mrs.Chanda Kochhar (MD & CEO) Area Served : Worldwide Website : www.icicibank.com

3. Research methodology Objectives  To Study about the history, growth and achievement of ICICI Bank  To Study about Loan lending policy and procedures of Bank  To Study about various loans and advances of ICICI Bank  To Study about various deposits of ICICI bank  To Study the financial performance of the ICICI bank

4. Source of Data Collection: Primary data Secondary data Limitations of the study:  Busy schedule

5. Total loan and advances of ICICI Bank 2,163.66 2,537.28 2,902.49 3,387.03 3,875.22 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00 4,500.00 2010-11 2011-12 2012-13 2013-14 2014-15 Total loan and advances

6. Types of loans  Home loans  Car loans  Gold loans  Personal loans  Loan against securities  Construction equipment loans  Commercial vehicle loans

7. Total deposits: 2,256.02 2,555.00 2,926.14 3,319.14 3,615.63 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00 2010-11 2011-12 2012-13 2013-14 2014-15 Total deposits

8. Types of Deposits Fixed Deposit Recurring Deposit Security Deposits

9. Table showing common-size profit and loss account Mar-11 % Mar-12 % Mar-13 % Mar-14 % Mar-15 % INCOME Interest earned 259,740,528 79.62 335,426,522 81.72 400,755,969 82.76 441,781,528 80.90 490,911,399 80.13 Other income 66,478,925 20.38 75,027,598 18.28 83,457,012 17.24 104,278,721 19.10 121,761,305 19.87 TOTAL 326,219,453 100.00 410,454,120 100.00 484,212,981 100.00 546,060,249 100.00 612,672,704 100.00 EXPENDITURE Interest expended 169,571,515 51.98 228,084,964 55.57 262,091,848 54.13 277,025,886 50.73 300,515,294 49.05 Operating expenses 66,172,492 20.28 78,504,433 19.13 90,128,837 18.61 103,088,614 18.88 114,958,307 18.76 Provisions and contingencies 38,961,684 11.94 39,212,151 9.55 48,737,569 10.07 67,840,979 12.42 85,445,554 13.95 TOTAL 274,705,691 84.21 345,801,548 84.25 400,958,254 82.81 447,955,479 82.03 500,919,155 81.76 NET PROFIT FOR THE YEAR (I-II) 51,513,762 15.79 64,652,572 15.75 83,254,727 17.19 98,104,770 17.97 111,753,549 18.24

10. Table showing common-size balance sheet Mar-11 % Mar-12 % Mar-13 % Mar-14 % Mar-15 % CAPITAL AND LIABILITIES Capital 11,518,200 0.28 11,527,683 0.24 11,536,362 0.21 11,550,446 0.19 11,596,608 0.18 Employees stock options outstanding 2,929 0.00 23,854 0.00 44,835 0.00 65,744 0.00 74,388 0.00 Reserves and Surplus 539,388,244 13.28 592,500,885 12.51 655,478,392 12.21 720,517,086 12.12 792,622,557 12.27 Deposits 2,256,021,077 55.54 2,554,999,561 53.94 2,926,136,257 54.51 3,319,136,570 55.82 3,615,627,301 55.96 Borrowings 1,095,542,771 26.97 1,401,649,073 29.59 1,453,414,944 27.08 1,547,590,539 26.03 1,724,173,498 26.68 Other Liabilities and Provisions 159,863,467 3.94 175,769,846 3.71 321,336,021 5.99 347,555,454 5.84 317,198,572 4.91 TOTAL 4,062,336,688 100.00 4,736,470,902 100.00 5,367,946,811 100.00 5,946,415,839 100.00 6,461,292,924 100.00 ASSETS Cash and Balances with Reserve Bank of India 209,069,703 5.15 204,612,935 4.32 190,527,309 3.55 218,218,262 3.67 256,529,069 3.97 Balances with Banks and Money at Call and Short Notices 131,831,128 3.25 157,680,199 3.33 223,647,879 4.17 197,077,695 3.31 166,517,084 2.58 Investments 1,346,859,630 33.15 1,595,600,430 33.69 1,713,935,993 31.92 1,770,218,164 29.77 1,865,800,348 28.88 Advances 2,163,659,014 53.26 2,537,276,579 53.57 2,902,494,351 54.07 3,387,026,492 56.96 3,875,220,728 59.98 Fixed Assets 47,442,551 1.17 46,146,870 0.97 46,470,587 0.87 46,781,360 0.79 47,255,187 0.73 Other Assets 163,474,662 4.02 195,153,889 4.12 290,870,692 5.42 327,093,866 5.50 249,970,508 3.87 TOTAL 4,062,336,688 100.00 4,736,470,902 100.00 5,367,946,811 100.00 5,946,415,839 100.00 6,461,292,924 100.00

11. Trend Analysis 1)TREND ANALYSIS OF DEPOSITS 100.00 113.25 129.70 147.12 160.27 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 2010-11 2011-12 2012-13 2013-14 2014-15 TREND PERCENTAGE TREND PERCENTAGE

12. 2)TREND ANALYSIS OF LOANS AND ADVANCES 100.00 117.27 134.15 156.54 179.10 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 200.00 2010-11 2011-12 2012-13 2013-14 2014-15 TREND PERCENTAGE TREND PERCENTAGE

13. Ratio Analysis 1)Net Profit Ratio Net Profit after Tax *100 Sales or Total Income 15.79 15.75 17.19 17.97 18.24 14.50 15.00 15.50 16.00 16.50 17.00 17.50 18.00 18.50 2010-11 2011-12 2012-13 2013-14 2014-15 Ratio

14. 2) Interest Expended to Interest Earned Ratio: INTEREST EXPENDED/INTEREST EARNED*100 65.28 68.00 65.40 62.71 61.22 56.00 58.00 60.00 62.00 64.00 66.00 68.00 70.00 2010-11 2011-12 2012-13 2013-14 2014-15 Ratio Ratio

15. 3)Cash to deposit ratio Total Cash Total Deposits 0.093 0.080 0.065 0.066 0.071 0.000 0.010 0.020 0.030 0.040 0.050 0.060 0.070 0.080 0.090 0.100 2010-11 2011-12 2012-13 2013-14 2014-15 Ratio CASH TO DEPOSIT CASH TO DEPOSIT

16. 4)Total advance to total assets ratio: TOTAL ADVANCE TOTAL ASSETS 0.53 0.54 0.54 0.57 0.60 0.48 0.50 0.52 0.54 0.56 0.58 0.60 0.62 2010-11 2011-12 2012-13 2013-14 2014-15 Ratio TOTAL ADVANCE TO TOTAL ASSETS TOTAL ADVANCE TO TOTAL ASSETS

17. 5)Total investment to total assets ratio: TOTAL INVESTMENT TOTAL ASSETS 0.33 0.34 0.32 0.30 0.29 0.26 0.27 0.28 0.29 0.30 0.31 0.32 0.33 0.34 0.35 2010-11 2011-12 2012-13 2013-14 2014-15 Ratio TOTAL INVESTMENT TO TOTAL ASSETS TOTAL INVESTMENT TO TOTAL ASSETS

18. 6)Loans to deposits ratio Loans and Advances*100 Deposits 95.91 99.31 99.19 102.05 107.18 90.00 92.00 94.00 96.00 98.00 100.00 102.00 104.00 106.00 108.00 110.00 2010-11 2011-12 2012-13 2013-14 2014-15 Ratio LOANS TO DEPOSIT RATIO LOANS TO DEPOSIT RATIO

19. 7)Net interest margin ratio: Interest earned – Interest expended Earning Assets 0.0204 0.0211 0.0238 0.0246 0.0254 0.0000 0.0050 0.0100 0.0150 0.0200 0.0250 0.0300 2010-11 2011-12 2012-13 2013-14 2014-15 Ratio NET INTEREST MARGIN NET…

20. 8)Gross Non-Performing Assets 3.78 3.03 3.22 3.62 4.47 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 2010-11 2011-12 2012-13 2013-14 2014-15 Ratio Gross NPA% Gross NPA Gross NPA *100 Gross Advances

21. 9)Net Non-Performing Assets: Net NPA *100 Net Advances 1.11 0.73 0.77 0.97 1.61 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2010-11 2011-12 2012-13 2013-14 2014-15 Ratio Net NPA (%) NPA (%)

22. 10)Return on equity (ROE) Net profit* 100 Net worth 9.35 10.70 12.48 13.40 13.89 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 2010-11 2011-12 2012-13 2013-14 2014-15 Ratio ROE ROE

23. 11)Current and savings Account Ratio (CASA RATIO) Deposits in current and savings account Total Deposits 0.451 0.435 0.419 0.429 0.455 0.400 0.410 0.420 0.430 0.440 0.450 0.460 2010-11 2011-12 2012-13 2013-14 2014-15 Ratio CASA Ratio (%)

24. Findings  Deposits of the bank have increased year by year.  Advances of the bank is also showing increasing trend.  Decrease in Interest expended to interest earned Ratio.  Decrease in Total investment to total assets Ratio.  NPA was increased.  Increase in Net Interest Margin Ratio.  CASA Ratio shows increase in trend.

25. Suggestion  Try to Bring down the NPA  Bank should try to maintain their profitability  Try to Maintain their Deposit Reserves  Simplification of bank procedure  Try to Maintain the CASA Ratio

26. Conclusion  On the basis of various techniques applied for the financial analysis of ICICI Bank we can arrive at a conclusion that the financial position and overall performance of the bank is satisfactory.  Income of the bank has increased over the period but not in the same pace as of expenses. But the bank has succeeded in maintaining a reasonable profitability position

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