A

PROJECT REPORT
ON

SHORT TERM LIQUIDITY A CASE STUDY OF ICICI BANK

LTD.

FOR
ICICI BANK PVT.LTD

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE

IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF

MASTER OF BUSINESS ADMINISTRATION (M.B.A.)
UNDER THE GUIDANCE OF
PROF DIPAK MULE SIR
SUBMITTED BY
KAMBLE SHUBHAM BHAUSAHEB

SUBMITTED THROUGH
DNYANVARDHNI SHIKSHAN SANSTHAS
GLOBAL INSTITUTE OF MANAGEMENT SANGAMNER
(2023=2024)
 CERTIFICATE

This is to certify that project entitled Short Term liquidity A case study of ICICI Bank Ltd . Is
successfully is successfully completed for the partial fulfillment of Master of Business Administration
(M.B.A.) affiliated to Savitribai Phule Pune University.
We further certify that to the best of our knowledge and belief, the matter presented in this project has not
been submitted to any other Degree or Diploma course.

DATE : Prof. Dipak Mule sir

PLACE : PROJECT GUIDE

ii
 DECLARATION

I undersigned hereby declares that, the project titled Short Term liquidity A case study of ICICI Bank
Ltd. is executed as per the course requirement of two-year full-time MBA program of global institute of
management sangamner. This report has not submitted by me or any other person to any other University
or Institution for a degree or diploma course. This is my own and original work.

Date Shubham Bhausaheb Kamble

Place MBA 2022-24

iii
 ACKNOWLEDGEMENT

I take this opportunity to express my profound express gratitude & deep regards to my guide Mr. Dipak
mule Sir for his exemplary guidance, monitoring & constant encouragement throughout the course of
thesis. The blessing, help & guidance given by his time will carry me a long way in the journey of life on
which I am about to embark.
I also take this opportunity to express deep sense of gratitude to Director for their cordial support &
guidance which help me in completing this task through stages.
I am obligated by the staff members of the industry who provided valuable information of their respective
fields. I am grateful for their cooperation during the period of assignment.

KAMBLE SHUBHAM BHAUSAHEB

iv
 List Of Abbreviations
ADRs American Depositary Receipts
ATD Association of Talent Development
ATM Automated Teller Machine
BOI Bank of India
BSBDA Basic Savings Bank Deposit Account
CAR Capital Adequacy Ratio
CAMEL Capital adequacy, Asset quality, Management, Earnings, Liquidity, and
Sensitivity
CIBIL Credit Information Bureau (India) Limited
COGS Cost Of Goods Sold
FD Fixed Deposit
FY Fiscal Year
DEMAT Dematerialization Account
HDFC Housing Development Finance Corporation Limited
ICICI Industrial Credit and Investment Corporation of India
KYC Know Your Customer
NII Net Interest Income
NIM Net Interest Margin
NRI Non-Residential Indian
NYSE The New York Stock Exchange
PCR Provision Coverage Ratio
RD Recurring Deposit
SBI State Bank of India
TDS Tax Deduction at Source

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 List of Tables

1 Current Account Deposits 30

2 Saving Account Deposits 31

3 Total Term Deposits 33

4 Total Deposits 34

5 Total Advances 36

6 Net Worth 38

7 Capital Adequacy 40

8 NII & NIM 43

9 Provision Coverage Ratio 44

10 Standalone Net Profit 45

11 Core Operating Profit 46

12 Current Ratio 48

13 Absolute Liquidity Ratio 50

14 Net Working Capital 51

15 Net Working Capital Ratio 52

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 List of Figures
1 Total Current Deposits (₹ in billion) 30

2 Growth of Total Current Deposits in Percentage 31

3 Total Savings Deposits (₹ in billion) 32

4 Total Term Deposits (₹ in billion) 33

5 Growth of Total Term Deposits in Percentage 34

6 Total Deposits (₹ in billion) 35

7 Growth of Total Deposits in Percentage 36

8 Total Advances in Percentage 37

9 Total Advances (₹ in billion) 38

10 Total Net Worth (₹ in billion) 39

11 Capital Adequacy - Tier I 40

12 Capital Adequacy - Tier II 41

13 Capital Adequacy - Common Equity Tier-1 41

14 Total Adequacy - Total Capital Adequacy 42

15 Net Interest Income (₹ in billion) 43

16 Net Interest Margin in Percentage 44

17 Provision Coverage Ratio 45

18 Standalone Net Profit (₹ in billion) 46

19 Core Operating Profit (₹ in billion) 47

20 Current Assets & Current Liabilities 48

21 Current Ratio 49

22 Absolute Current Ratio 50

23 Net Working Capital (₹ in crores) 51

24 Net Working Capital Ration 52

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Sr. No. Title Page Number

1 Certificate ii

2 Declaration iii

3 Acknowledgement iv

4 List of abbreviation v

5 List of tables vi

6 List of figures vii

7 Chapter -I Executive summary 1-2

8 Chapter -II Introduction 3-6

9 Chapter -III Organizational profile 7-12

10 Chapter -IV Objective of study 13-14

11 Chapter -V Literature of Review 15-25

12 Chapter -VI Research Methodology 26-28

13 Chapter -VII Data Analysis 29-52

14 Chapter -VIII Findings 53-54

15 Chapter -IX Suggestion and Conclusion 35-56

16 Chapter -X Limitation 57-58

17 Chapter -XI Bibliography 59

18 A) Journals 60-61

19 B) Website 62

20 C) Appendices 63

INDEX
 CHAPTER-I
Executive Summary

1
 Executive Summary

A brief overview of what is Financial Statement, balance sheet and profit & loss is given in this
project. The parameters required for financial statement analysis such as different types of ratios have
been studied. Mainly financial statements are of 2 types - Balance Sheet, Income Statement (Trading,
Profit & Loss Account).
While doing this project, the main objectives of the bank have been kept in front of the eyes and the
direction has been given to the project. The financial performance of ICICI bank has been checked by
studying the important parameters of financial performance. In this study, measures have been
identified and how they can be used to increase the financial performance of the bank.
In this project, the financial condition of the bank has been studied by analyzing the financial
statement of ICICI Bank. In this study, bank's Total Deposit, Total Advances, Net Worth, Capital
Adequacy, NII & NIM, Provision Coverage Ratio, Standalone Net Profit and Finally Core Operating
Profit etc. have been analyzed.
Analysis has been done on the last 3 years financial statement of ICICI Bank. Secondary data has
been used while doing this project, which includes the bank's annual report (2020- 21), research papers
and journals, as well as some websites.
The results of data analysis are displayed in the form of various graphs. So that there will be no
difficulty in understanding this project for those who want to study it. Wherever there is a table in the
project, the graph and its explanation are presented below the table itself. If you look at all the charts
and graphs based on it, you will notice that ICICI Bank is progressing well and its growth rate is
increasing.

2
 CHAPTER- II
INTRODUCTION

3
 Introduction
Introduction
Indian Banking industry is the backbone of the country’s economy and it plays a vital role in
strengthening the financial system of the country. Banks are financial institutions that accept savings
of the public and grants loans and advances to business, industry and society at large. Banks are
considered to be very important financial mediators because they result into well- being of saver as
well as investors. Banks are central to the functioning of an economy due to their role in credit inter-
mediation process, payment and settlement systems and monetary policy transmission. Financing
facilitates the flow of goods and services and the activities of the government. It also provides a great
portion of the medium of exchange to the country. A sound and efficient banking system is considered
to be of paramount importance for the growth of the economy as a whole.
Liquidity
The ability of bank in converting an asset to cash and unused bank lines of credit is determined as
liquidity. It is also referred as securities and reserves of cash for banks. In order to meet all
maturing unsecured debt obligations, liquidity should be sufficient enough throughout a one-year time
horizon. Liquid assets to total assets, liquid assets to total deposits, demand deposits, customer
deposits, and loan to customer deposits are used to measure the liquidity ratio of banks
Short-term Liquidity
Short-term liquidity of an enterprise is measured by the degree to which it can meet its short- term
obligation. The evaluation of short-term liquidity is concerned with the assessment of the
unsystematic risk of dying enterprise.
Meaning of Financial Statements:
A financial statement analysis consists of the application of analytical tools and techniques to

Uses of Financial Statement Analysis:

Financial Statement Analysis can be used as a preliminary screening tool in the selection of stocks in
the secondary market. It can be used as a forecasting tool of future financial conditions and results. It
may be used as process of evaluation and diagnosis of managerial, operating or other problem areas.
Sources of Financial Information:
The financial data needed in the financial analysis come from many sources. The primary source is the
data provided by the company itself in its annual report and required disclosures. The annual report
comprises of the income statement, the balance sheet, and the statement of cash flows.
As indicated by John N. Myer (1985), "the fiscal summaries give an outline of the records of a
business venture, the accounting report mirroring the advantages, liabilities and capital as on a
specific date and the salary articulation demonstrating the consequences of tasks during a specific,
4
 As indicated by Anthony (1976), " fiscal summaries, basically, are between time reports,
displayed.
every year and mirror a division of the life of a venture into pretty much subjective Accounting
period all the more oftentimes in a year".
The term Financial Analysis is also known as ‘analysis and interpretation of financial statements’
refers to the process of determining financial strength and weakness of the firm by establishing
strategic relationship between the items of the –
a) Balance Sheet,
b) Profit and Loss account and
c) Other operative data.
Tools of Financial Analysis:
In the analysis of financial statements, the analyst has a variety of tools available to choose the best
that suits his specific purpose. In this report we will confine ourselves to Ratio Analysis based on
information provided from financial statements such as Balance Sheet and Profit & Loss Account.

Ratio Analysis
Ratio analysis is one of the widely used tool of financial analysis. It means expressing one item
in relation to another in numerical term. To have a better understanding and details about the
financial statement, the analysis has been done using ratio analysis. To have a better
understanding and details about the financial statement, the analysis has been done using ratio
analysis. Every business undertaking needs finance for its smooth working. This study aims to
analyze the liquidity, profitability, solvency position of the firm and its efficiency.
Types of Ratio Analysis
Below are the types and list of financial ratios with formulas: –
1. Quick Ratio
2. Absolute Liquidity Ratio
3. Cash Ratio
4. Inventory Turnover Ratio
5. Receivables Turnover Ratio
6. Capital Turnover Ratio
7. Asset Turnover Ratio
8. Net Working Capital Ratio
9. Cash Conversion Cycle
10. Earnings Margin
11. Return on Investment

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 12. Return on Equity
13. Earnings Per Share
14. Operating Leverage
15. Financial leverage
16. Total Leverage
17. Debt-Equity Ratio
18. Interest Coverage Ratio
19. Debt Service Coverage Ratio
20. Fixed Asset Ratio
21. Current Asset to Fixed Asset
22. Proprietary Ratio
23. Fixed Dividend Cover
24. Capacity Ratio

This project analyses measured short-term liquidity by the degree to which it can meet its short-term
obligation. In this project, to convert assets into cash or obtain cash of ICICI Bank Ltd.
Also, this project analyses the current financial situation of an organization which shows the
growthratios of financial statement of the bank.

6
7
 CHAPTER-III
ORGANIZATIONAL
PROFILE

8
 Organizational Profile
History of the Bank:-
Industrial Credit and Investment Corporation of India (ICICI) Bank Limited is an Indian
multinational banking and financial services company. ICICI Bank was originally promoted in 1994
by ICICI Limited, an Indian Financial institution, and was its wholly-owned subsidiary.
ICICI's shareholding in ICICI Bank was reduced to 46 percentages through a public offering of shares
in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000,
ICICI Bank's acquisition of Bank of Madura Limited in an all-stock Amalgamation in fiscal 2001 and
secondary market sales by ICICI to institutional Investors in fiscal 2001 and fiscal 2002. ICICI was
formed at the initiative of the World Bank. The Government of India and representatives of Indian
industry.
The principal objective was to create a development financial institution for providing Medium- term
and long-term projects financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development financial institution offering only
project finance to a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999,
ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia
to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry and the move towards universal banking, the
managements of ICICI and ICICI Bank held the view that the merger of ICICI with ICICI Bank would
be the optimal strategic alternative for both entities, and would create the optimal legal structure for
the ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the merged entity's access to low-
cost deposits, greater opportunities for earning fee-based income and the ability to participate in the
payments system and provide transaction-banking services. The merger would enhance value for
ICICI Bank shareholders through a large capital base and scale of operations, seamless access to
ICICI's strong corporate relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based services, and access to the
vast talent pool of ICICI and its subsidiaries.
Highlights –
1. ICICI Bank Ltd. was established on 5th January 1994.
2. The bank has its corporate office in Mumbai, Maharashtra.
3. The banks have 5275 branches and 15,589 ATMs across India.
4. The bank has a brand presence in 17 countries worldwide.
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 5. In 1998, ICICI bank launched internet banking services
6. In 1999, it became the first Indian company and the first bank to be listed on NYSE.
7. ICICI bank also helped set up the Credit Information Bureau of India Limited (CIBIL).
Corporate Profile of the Bank
ICICI Bank Ltd is a major banking and financial services organization in India. The Bank is the third
largest bank in India and the largest private sector bank in India by market capitalization.
o Core operating profit (profit before provisions and tax, excluding treasury income) grew by
20% year-on-year to ₹ 8,565 crore (US$ 1.2 billion) in the quarter ended March 31, 2021
(Q4-2021).

o The Bank made additional Covid-19 related provision of ₹ 1,000 crore (US$ 137 million) in
Q4-2021 and held Covid-19 related provisions of ₹ 7,475 crore (US$ 1.0 billion) at March 31,
2021
o Profit after tax was ₹ 4,403 crore (US$ 602 million) in Q4-2021 compared to ₹ 1,221 crore
(US$ 167 million) in the quarter ended March 31, 2020 (Q4-2020)
o Core operating profit grew by 17% year-on-year to ₹ 31,351 crore (US$ 4.3 billion) in the year
ended March 31, 2021 (FY2021)
o Profit after tax grew by 104% year-on-year to ₹ 16,193 crore (US$ 2.2 billion) in FY2021
compared to ₹ 7,931 crore (US$ 1.1 billion) in the year ended March 31, 2020 (FY2020)

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
10
and Indonesia. ICICI bank UK subsidiary has established branches in Belgium and Germany.

ICICI Offerings
ICICI Bank offers various services to the public in India and abroad. Mentioned below are some of
their services with a brief description.

 ICICI Prudential Life Insurance

This is a joint venture between ICICI bank and Prudential Corporation Holdings Limited. It was
established in 2001 and has been one of the most successful services in the private life insurance
sector. It was ranked #1 four times in the most valuable Life Insurance brands in India as per the
BrandZ Top 50 Most Valuable Indian Brands 2014, 2015, 2016 and 2017.

 ICICI Securities Ltd.

It offers a wide range of financial services, investment banking, retail broking, institution broking,
private wealth management, product distribution. It has also registered with the Monetary Authority of
Singapore and has a branch office there. It is headquartered in Mumbai and has subsidiaries in New
York too.

 ICICI Lombard General Insurance Company

ICICI Lombard is the largest private-sector non-life insurer in India. Customers get services regarding
motor, health, crop-/weather, institutional broking, retail broking, private health management and
many more.
ICICI Lombard won the ATD (Association of Talent Development) Award for the 5th time in 2017.
Among the top 2 companies that maintained their positions in Top 10 that year was ICICI Lombard. It
was also awarded the Golden Peacock National Training Award in the same year.

 ICICI Securities Primary Dealership Limited

It is the largest dealer in government securities in India. It deals in institutional sales and trading,
resource mobilization, Portfolio management services and research. ICICI Securities Primary
Dealership was awarded as Top Bank Arranger Investors’ Choices for Government Primary Issues in
India by Triple-A Asset

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Products And Services Provided by ICICI Bank Ltd.
Products Offered by ICICI Bank
Some of the products that are offered by ICICI Bank are mentioned below:
Deposit Accounts
Various deposit accounts are offered by ICICI Bank and some of them are listed below:
 Salary Account - The Salary Account is offered to both employees and employers. Under the
account, no minimum balance needs to be maintained. Phone banking and a personalized
cheque-books are offered free of cost.
 Savings Account - ICICI Bank offers a host of features and benefits under the savings
account. You have the option to open an account online. Cashback and rewards benefits are
offered under the bank’s savings account.
 Defence Salary Account - The account has been designed for Defence Personnel and helps
them meet their banking needs.
Cards
Several cards are offered by the bank that you can apply for online, some of which are given below:
 Debit Card - Several debit cards are offered by ICICI Bank that comes with different features
and benefits. Payments can be made easily with the help of a debit card.
 Credit Card - Different credit cards are offered by ICICI Bank and come with several
benefits. You can apply for a credit card online and the process is simple.
Investments
ICICI Bank offers several investment options. Certain schemes can be applied online as well. Some of
the investment schemes that are offered by the bank are mentioned below:
 Recurring Deposit - ICICI Bank offers the RD scheme at attractive interest rates. The
tenure of the scheme ranges from 6 months to 10 years.
 Fixed Deposit - The FD scheme offered by ICICI Bank comes with competitive interest rates.
Senior citizens may be offered an additional interest rate. The FD account can be opened
online.
Loans

Various loans are offered by ICICI Bank, some of which are listed below:
 Gold Loan - Up to Rs.1 crore may be provided as a loan by ICICI Bank under the scheme.
The documentation process is simple and the loan can be availed for various purposes.
 Education Loan - Up to Rs.2 crore may be provided as an education loan by ICICI Bank. The
loan can be used for higher studies in India or abroad.
 Pradhan Mantri Mudra Yojana - Loans of below Rs.10 lakh are provided under the scheme.

12
 The three different products under the scheme are Tarun, Kishore, and Shishu.
 Car Loan - Car loans can be availed for the purchase of new cars and used cars. ICICI Bank
offers the car loan scheme at an attractive interest rate.
 Two-Wheeler Loan - ICICI Bank offers the two-wheeler loan at an attractive interest rate. Up
to 100% of the on-road price of the bike may be provided as a loan.
 Personal Loan - You can apply for the personal loan offered by ICICI Bank online. Up to
Rs.50 lakh may be provided as a loan.
 Home Loan - Depending on the type of loan, up to Rs.10 crore may be provided. The
repayment tenure may be up to 30 years.
Banking Services
Some of the banking services that are offered by ICICI Bank are mentioned below:
 Customer Care - You can call ICICI Bank’s customer care number in case of queries.
 Net Banking - The net banking facility offered by ICICI Bank allows you to access various
banking services online.
 Mobile Banking - You can download the ICICI Bank’s mobile app on your smartphone.
Various banking services can be accessed on the mobile app.
 Balance Inquiry - You can check the ICICI Bank balance via calling customer care, mobile
banking, net banking, etc.

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 CHAPTER-IV
OBJECTIVE OF STUDY

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 Objectives of the Study
Research objectives are the outcomes that you aim to achieve by conducting research. Creating strong
research objectives can help your organization achieve its overall goals.
The purpose of research objectives is to drive the research project, including data collection, analysis
and conclusions. Research objectives also help you narrow in on the focus of your research and key
variables, guiding you through the research process.
The main objectives are given as follows:
1. To study the important parameters of financial performance of banking firms.
2. To study the financial performance of ICICI Bank
3. To identify measures to improve the financial performance of ICICI Bank.

Scope of the Study

 The growth rate of any organization is calculated from its financial statement. This project has
studied how short -term liquidity affects the growth rate of ICICI Bank. Also, the financial
condition of the bank has been checked by studying the financial statement.
 In this project the present study is done on the annual report of ICICI Bank for 3 years from
year 2019 to year 2021. This analytical study is based on limited information provided by the
bank.

Importance of the Study

 Analyzing the short-term liquidity of bank, to measure the relationship between bank’s current
liabilities and current assets.
 Analyzing the current position of financial analysis.
 Providing information about the cash position, the company is holding and how much debt the
company has in relation to equity.

15
 CHAPTER-V
LITERATURE REVIEW

16
 Literature Review
Dr. R. Mayilsamy and D. Priya Dhrashiny (August 2021) in his paper, “The ratio analysis and
trend analysis and balance sheet show that ICICI bank’s financial position is good. Bank’s
profitability is increased at high rate. Bank’s liquidity position is fair but not good because the bank is
invested more in current assets than liquid assets. As we all know that ICICI bank is on the second
position among all the private sector bank of India in all area but it should pay attention on its
profitability and liquidity. Banks’s position is stable.”
Dr. Syed Shujat Husain, Noor Alam, Volume 10 issue 4 April, 2021, stated in his journal report -
The primary motives for establishing an organization is the maximization of profit by performing
economic operational activities. The ICICI bank is a joint stock company and financial institution,
continuously working in the field of financial market. The bank is not only working as a commercial
bank but a development bank also. It is also working in the field of underwriting as an underwriter or
mediator in the capital market. The institution has been increasing its wealth since its establishment
in 1955 by maximization of its earnings after tax.
Cheenu Goel and C. B. Rekhi (2013) had analyzed the performance of three major public sector
banks (SBI, PNB, BOB) and three private sector banks (ICICI, HDFC, AXIS) year 2009 to 2012. To
analysis the data ratios and coefficient correlation techniques were employed. The foregoing analysis
for SBI had revealed that the overall profitability is not that high because they there NIM is less and
need to increase NIM. For PNB return on equity was very high as compared to other banks and they
have good association with deposits. In case of BOB bank doesn't have good association with deposits
so there CDR is also very less and NIM is also need to grear up. For ICICI bank it has good
association with CAR and deposits in banks are very high and NIM is less which needs to be increased
which will impact the profitability.

Svetlana Tatuskar (2010), in his research paper took the sample of 5 commercial banks (SBI, ICICI,
AXIS, HDFC, BOI) in India to analysis the financial performance of banks through Camel’s
methodology for 2006-2010. The paper also compared the performance of these Banks with the
previous year 2008-09 and ranks each bank on the basis of the findings got by the CAMEL
methodology evaluations. The study showed that the performance of the banks for the year ended
2010 had been much better as against their performance during the previous year ended 2009. With
the effect of the crisis subsidizing in the global banking sector, the Indian banking sector had shown
extraordinary financial performance even amidst the financial crisis.
Saini, A. (2015), Study found that the mean of Credit Deposit Ratio in SBI was higher (81.202 %)
than in ICICI Bank (66.486%). This shows that SBI Bank has created more loan assets from its
deposits as compared to ICICI Bank. The Net Profit Margin of ICICI is higher (15.772 %) whereas in
17
SBI it was (9.044 %), which shows that ICICI has shown comparatively better operational efficiency
than SBI.

Concept
Concept of Liquidity
Liquidity at a bank is a measure of its ability to readily find the cash it may need to meet demands
upon it. Liquidity can come from direct cash holdings in currency or on account at the Reserve Bank
of India or another central bank. More commonly it comes from holding securities that can be sold
quickly with minimal loss. This typically means highly creditworthy securities, including government
bills, which have short-term maturities. Indeed, if their maturity is short enough the bank may simply
wait for them to return the principal at maturity. Short-term, very safe securities also tend to trade in
liquid markets, meaning that large volumes can be sold without moving prices too much and
with low

transaction costs (usually based on a bid/ask spread between the price dealers will pay to buy
-- the bid -- and that at which they will sell -- the ask.)

Concept of Financial Statement

The process of critical evaluation of the financial information contained in the financial statements in
order to understand and make decisions regarding the operations of the firm is called ‘Financial
Statement Analysis’. It is basically a study of relationship among various financial facts and figures as
given in a set of financial statements, and the interpretation thereof to gain an insight into the
profitability and operational efficiency of the firm to assess its financial health and future prospects.
Financial analysis is the process of identifying the financial strengths and weaknesses of the firm by
properly establishing relationships between the various items of the balance sheet and the statement of
profit and loss. Financial analysis can be undertaken by management of the firm, or by parties outside
the firm, viz., owners, trade creditors, lenders, investors, labour unions, analysts and others.

Liquidity Ratio
Liquidity ratios are a measure of the ability of a company to pay off its short-term liabilities. Liquidity
ratios determine how quickly a company can convert the assets and use them for meeting the dues
that arise. The higher the ratio, the easier is the ability to clear the debts and avoid defaulting on
payments.
Types of Liquidity Ratio
There are following types of liquidity ratios:
1. Current Ratio or Working Capital Ratio
2. Quick Ratio also known as Acid Test Ratio
3. Cash Ratio also known Cash Asset Ratio or Absolute Liquidity Ratio
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4. Net Working Capital Ratio

19
Current Ratio or Working Capital Ratio
The current ratio is a measure of a company’s ability to pay off the obligations within the next
twelve months. This ratio is used by creditors to evaluate whether a company can be offered short
term debts. It also provides information about the company’s operating cycle. It is also popularly
known as Working capital ratio. It is obtained by dividing the current assets with current liabilities.
Current ratio is calculated as follows:
Current ratio = Current Assets / Current
Liabilities
A higher current ratio around two (2) is suggested to be ideal for most of the industries while a lower
value (less than 1) is indicative of a firm having difficulty in meeting its current liabilities.
Quick Ratio or Acid Test Ratio
Quick ratio is also known as Acid test ratio or Liquid ratio. It is used to determine whether a company
or a business has enough liquid assets which are able to be instantly converted into cash to meet short
term dues. It is calculated by dividing the liquid current assets by the current liabilities
It is represented as:
Quick Ratio = (Cash + Marketable securities + Accounts receivable) / Current
liabilities

The ideal quick ratio should be one(1) for a financially stable company.
In another ways, the liquid ratio is calculated as under:
 Liquid ratio = Liquid Assets / Liquid Liabilities.
 Liquid Assets = Current Assets - prepaid expenses.
 Liquid Liabilities = Current Liabilities – Bank overdraft

Cash Ratio or Absolute Liquidity Ratio

Cash ratio is a measure of a company’s liquidity in which it is measured whether the
company has the ability to clear off debts only using the liquid assets (cash and cash equivalents such
as marketable securities). It is used by creditors for determining the relative ease with which a
company can clear short term liabilities.
It is calculated by dividing the cash and cash equivalents by current liabilities.
Cash ratio = Cash and equivalent / Current
liabilities

Net Working Capital Ratio

The net working capital ratio is used to determine whether a company has sufficient cash or funds to
continue its operations. It is calculated by subtracting the current liabilities from the current assets.
Net Working Capital Ratio = Current Assets – Current Liabilities/Total Assets

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Financial Highlights
Total Deposits
Deposit is a term used to denote the money kept or held in any bank account, especially to accumulate
interest. The fund used as a security to get the goods delivered can also be called a deposit. Any
transaction processed to transfer money to an entity for safeguarding can be referred to as a deposit.
Total Deposits means the aggregate amount of the deposits as of the close of business on the Closing
Date, including accrued and unpaid interest thereon through the close of business on the Closing Date.
Types of Deposits:
There are two main types of deposits –
Recurring Deposit:
A special type of account wherein you do not have to deposit a lump sum amount rather you have to
deposit a fixed amount every month. This fixed amount can be as low as Rs. 100 every month.
When you want to incorporate a habit of savings, then you should open this account. The rate of
interest offered on a current deposit varies from bank to bank and may range from 5% to 7% and
different rates are provided to the senior citizens.
A recurring deposit can have different maturity ranges that may vary from six months to 120 months.
You can give an order to your bank for withdrawing a specific amount every month, and this amount
can be credited to the Recurring Deposit account regularly. However, the bank can charge some
penalty for delay in an installment payment.
Another special feature of an RD account is that you can take a loan up to 80% to 90% of your
deposit by the use of this deposit. There is no facility for premature withdrawal, and if you close your
recurring deposit account before the date of maturity, then you have to pay the penalty.
Fixed Deposit:
The fixed deposit is a type of investment instrument offered by banks, other financial institutions, non-
banking financial companies. With a fixed deposit, your money is deposited for a fixed tenure and you
get guaranteed returns. The interest on fixed deposits ranges from 5% to 9%. The rate of interest
offered in a fixed deposit account is higher than what is provided in a savings account.
The tenure for which your money gets deposited in a fixed deposit ranges from seven days to 10 years.
You may or may not have to have a separate account for opening a fixed deposit account with a bank.
Some banks these days offer fixed deposits that provide tax exemption of up to Rs. 1, 50,000. You can
use this tax exemption every year U/S 80C of the Income Tax Act, 1961.

21
Another advantage of opening a Fixed Deposit account is that the interest amount below Rs. 40,000 is
free from tax. The interest amount is more than Rs. 40,000 is subject to TDS (Tax Deduction at
Source). Same as recurring deposit, you cannot perform a premature withdrawal, however, you can
shut-down the FD account prematurely.

22
Types of Bank Account:
You need to have a bank account to make a deposit in a bank. Details regarding the types of bank
accounts are given below.
Savings Account
As the name suggests, the savings accounts can be opened by an individual or jointly by two people
with an aim to save money.
The main benefit of opening a savings bank account is that the bank pays you interest for opening
this type of account with them.5
Given below are a few features of the Savings account:
 There is no limit to the number of times the account holder can deposit money in this account
but there is a restriction on the number of times money can be withdrawn from this
account.
 The rate of interest that an account holder get varies from 4% to 6% per annum
 There is no minimum balance that needs to be maintained for this type of an account
 The savings account holders can get an ATM/Debit/Rupay Card if they want to
 Savings bank account is further divided into two types: Basic Savings Bank Deposit Account
(BSBDA) and the other one is Basic Saving Bank Deposit Accounts Small Scheme (BSBDS)
 The savings bank account is mostly eligible for students, pensioners and working professionals
Current Account
The second type of bank account is the current bank account. These accounts are not used for the
purpose of savings.
Some important pointers related to the current bank account have been discussed below:
 This type of bank account is mostly opened by businessmen. Associations, Institutions,
Companies, Religious Institutions and other business-related works, the current account can be
opened.

 There is no fixed number of times that money can either be deposited or withdrawn from
such accounts
 Internet banking is available
 This type of bank account does not have any fixed maturity
 Overdraft facility is available for current bank accounts
 There is no interest that is paid on such accounts

Recurring Deposit Account

Recurring Deposit account or RD account is a form of account wherein the account holder needs to
deposit a fixed amount every month until it reaches the fixed maturity date.
23
The features of the Recurring deposit account have been discussed below:
 Any individual or an Institution can open a recurring deposit account either separately or
jointly
 Periodic or monthly instalments that need to be added can be as low as Rs.50/- or may vary
from bank to bank
 The range of months for which an RD account can be opened varies from 6 months to 120
months
 The interest rate varies depending upon the bank you choose to open an account with
 Nomination facility is also available for RC accounts
 Passbook is issued for this type of bank account
 Premature withdrawal of the amount is permitted, provided a sum of amount is deducted as
penalty
Fixed Deposit Account
FD or a fixed deposit account is another type of bank account that can be opened in any Public or
Private sector bank.
The list of important things that need to be known with respect to the fixed deposit account has
been mentioned below:
 It is a one-time deposit and one time take away account. Under this type of account, the
account holder needs to deposit a fixed amount of sum (as per their wish) for a

fixed time period

 The amount deposited in FD account can only be withdrawn all at once and not in
instalments
 Banks pay interest on the fixed deposit account
 The rate of interest depends upon the amount you deposit and for the time duration of the FD
 Full repayment of the amount is available before the maturity date of FD

2.3.1.A.2. DEMAT Account

Shares and securities which can be held in electronic format constitute the DEMAT account. The
DEMAT account also stands for Dematerialized Account.
Given below the points that need to be known by a candidate regarding the DEMAT Account:
 There are only two depository organizations which manage this type of bank account in India.
This includes: National Securities Depository Limited and Central Depository Services
Limited
 This helps facilitate easy trade of bonds and shares

24
  Helps in conducting stress-free transaction of shares
 KYC is required for opening the DEMAT Account
 Transaction cost is reduced
 Traders can work from anywhere
 The transfer of securities can be done with reduced paperwork

NRI Account
To fulfil the bank requirements of a Non-Residential Indian or a Person of India Origin, the option of
NRI account is available.
The NRI Accounts are further divided into three types:
1. NRO (Non-Resident Ordinary Rupees) Account – This shall allow you to transfer your
foreign earnings easily to India. It can be opened in the form of an

FD/RD/Current/Savings account. These accounts can be opened by an individual or jointly

opened
2. NRE (Non-Resident External Rupees) Account – When an Indian citizen moves abroad to
work there, his/her account needs to be converted into an NRE account. This account can be
jointly opened with an Indian resident
3. FCNR (Foreign Currency Non-Resident) Account – This type of account can be opened to
manage an international currency. It can only be in the form of Term deposit and can be
withdrawn after the maturity period only.

2.2.4. Total Advances

Advances are the source of finance, which is provided by the banks to the companies to meet the
short-term financial requirement. It is a credit facility which should be repaid within one year as per
the terms, conditions and norms issued by Reserve Bank of India for lending and also by the schemes
of the concerned bank. They are granted against securities which are as under:
 Primary Security: Hypothecation of Debtors, Stock Pro-notes, etc.

 Collateral Security: Mortgage of land and buildings, machinery, etc.

 Guarantees: Guarantees given by partners, directors or promoters, etc.

The following are the forms of bank advances:
 Short term loans: Advance in which the entire amount is provided to the borrower at one
time.

 Overdraft: A facility provided by the bank in which the customer can overdraw money
from his account up to a specified limit.

25
 Cash Credit: A facility granted by the bank in which the customer can advance money
up to a certain limit against the asset pledged.

 Bills Purchased: An advance facility provided by the bank against the security of bills.

26
Retail Banking
Retail banking is everyday banking that happens between consumers and their personal banks.
A retail bank offers consumers basic banking services, including checking accounts, savings accounts,
and loans.
 Retail banks are for the general public to help them save and invest their money and handle
their regular needs by providing various services like bank accounts, credit cards, debit cards,
fixed deposits, loans, and many more.
 Certain services like withdrawals and deposits can also be availed online as well as in the
nearest branch of your bank. Online retail banking has made the transfer of money and
retailing easier for the retail customers.

Overseas
An offshore, or overseas, bank account is one that you have in a country you don't reside in. They
allow you to make and receive payments, hold money and set up savings and investment accounts in
multiple currencies.
Domestic corporation
A domestic corporation is a company that conducts its affairs in its home country. A domestic
business is often taxed differently than a non-domestic business and may be required to pay duties or
fees on the products it imports. Typically, a domestic corporation can easily conduct business in other
states or parts of the country where it has filed its articles of incorporation.
Net worth
Net worth is the difference between the asset and the liability of an individual or a company. A high
net worth relates to good financial strength and ultimately good credit rating of an individual or a
company. Similarly, a low or negative net worth will relate to a weaker financial strength and a
lower credit rating, thus directly affecting the individual's or the company's ability to raise funds
from the market.

Capital Adequacy
The capital adequacy ratio measures the ability of a bank to meet its obligations by comparing its
capital to its assets. Regulatory authorities monitor this ratio to see if any banks are at risk of failure.
The intent behind their monitoring is to protect the financial system from the negative effects of any
bank failures, which includes protecting the funds of bank depositors.
To calculate the capital adequacy ratio, add together the amounts of Tier 1 and Tier 2 capital and then
divide by the total amount of risk-weighted assets. The formula is as follows:

27
When this ratio is high, it indicates that a bank has an adequate amount of capital to deal with
unexpected losses. When the ratio is low, a bank is at a higher risk of failure, and so may be required
by the regulatory authorities to add more capital.
Tier 1 and Tier 2 Capital
The numerator of the calculation includes Tier 1 and Tier 2 capital. Tier 1 capital can be used to
absorb losses without a bank having to stop its operations. Tier 2 capital can be accessed by shutting
down operations and selling off assets, which is a more extreme type of security against risk.

The tier 1 capital noted in the numerator includes ordinary share capital, audited revenue reserves,
future tax benefits, and intangible assets. The tier 2 capital noted in the numerator includes unaudited
retained earnings, general provisions for bad debts, revaluation reserves, perpetual subordinated debt,
perpetual cumulative preference shares, and subordinated debt.

NII & NIM

Net Interest Income (NII)
Net interest income is a financial performance measure that reflects the difference between

the revenue generated from a bank's interest-bearing assets and the expenses associated with paying on
its interest-bearing liabilities. A typical bank's assets consist of all forms of personal and commercial
loans, mortgages, and securities. The liabilities are interest-bearing customer deposits. The excess
revenue that is generated from the interest earned on assets over the interest paid out on deposits is the
net interest income.
The formula for calculating net interest income is as follows:
Net Interest Income = Interest Income – Interest
Expense

The net interest income of some banks is more sensitive to changes in interest rates than others. This
can be the result of several factors such as the type of assets and liabilities that are held as well as
whether or not the assets and liabilities have fixed or variable rates. Naturally, banks with variable rate
assets and liabilities will be more sensitive to changes in the interest rates than those with fixed-rate
holdings.
Net Interest Margin (NIM)
Net interest margin (NIM) is a metric comparing the net interest income created by a financial firm. It
is arrived from credit products, such as loans and mortgages, with the outgoing interest it charges to
savings account holders and deposit certificates (CDs).
Expressed as a percentage, the NIM is an indicator of profitability that telegraphs the probability of an
28
investment firm or bank thriving over the long haul.
Provision Coverage Ratio
Provisions are set aside by businesses in case they are anticipating any losses or unexpected bad loans.
It is mandatory for Indian banks to create a provision fund to cover their anticipated bad loans, and
this is the provision coverage ratio. Banks set aside provisions for bad loans from the bank’s own
funds, mostly from the profits. Also, it is mandatory for the banks to disclose the Provision Coverage
Ratio (PCR) in their annual financial statements in Notes to Accounts to the Balance Sheet.
RBI has initially set a 70% benchmark as PCR. This means the bank has to set aside 70% of its loans
as a provisional buffer. The higher the PCR, the better it is for the banks as it is useful when their
NPAs grow at a faster rate. Ideally, a PCR above 70% is good.
The formula to calculate Provision Coverage Ratio (PCR) is as follows:
Standalone Net Profit
Standalone profit is the profit associated with the operation of a single segment or division within a
firm. This contrasts with consolidated profit, which measures the profit of a firm as a whole.
Measuring the standalone profit of each separate segment or division of a firm then adding them all up
is a possible way to measure the overall profit of the entire firm.

When measuring standalone profit, values are only included if they are directly generated from the
activities of the segment or division of the firm.
Core Operating Profit
The term "operating profits" refers to an accounting statistic that calculates the profits earned by a
corporation from its core business operations, where interest and tax deductions are removed from the
measurement. Likewise, this operating value excludes all income from the ancillary activities of the
corporation, such as earnings from individual companies in which a company might be partially
invested.
The operating income can be determined by using the formula following:
Operating Profit = Operating Revenue - Cost of Goods Sold (COGS) –
Operating Expenses - Depreciation – Amortization

29
 CHAPTER-VI
RESEARCH
METHODOLOGY

30
 Research Methodology
The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on
accuracy, reliability and adequacy of results obtained. It is due to this reason that research
methodology, which we used at the time of conducting the research, needs to be elaborated upon. It
may be understood as a science of studying how research is done scientifically.
So, the research methodology not only talks about the research methods but also considers the
logic behind the method used in the context of the research study. Research Methodology is a way to
systematically study and solve the research problems. If a researcher wants to claim his study as a
good study, he must clearly state the methodology adapted in conducting the research the research so
that it may be judged by the reader whether the methodology of work done is sound or not.
Research Design Used in The Study:
Descriptive research design is used in this study because it will ensure the minimization of bias and
maximization of reliability of data collected. Descriptive study is based on some previous
understanding of the topic.
Research has got a very specific objective and clear-cut data requirements The researcher had to use
fact and information already available through financial statements of earlier years and analyze these
to make critical evaluation of the available material.
Hence by making the type of the research conducted to be both Descriptive and Analytical in nature.
From the study, the type of data to be collected and the procedure to be used for this purpose were
decided.
Data Collection Method:
The process of data collection begins after a research problem has been defined and research
design has been chalked out. There are two types of data –
Primary Data -
It is first hand data, which is collected by researcher itself. Primary data is collected by various
approaches so as to get a precise, accurate, realistic and relevant data. The main tool in gathering
primary data was investigation and observation. It was achieved by a direct approach and observation
from the officials of the company.
Secondary Data –
It is the data which is already collected by someone else. Researcher has to analyze the data and
interprets the results. It has always been important for the completion of any report. It provides
reliable, suitable, adequate and specific knowledge.
Type Of Data Used in The Study
The required data for the study are basically secondary in nature and the data are collected from

31
  The audited reports of the company.
 INTERNET – which includes required financial data collected form ICICI Bank’s official
website i.e., www.icici.com and some other websites on the internet for the purpose of getting
all the required financial data of the bank and to get detailed knowledge about ICICI Bank for
the convenience of study.

 Broachers of ICICI Bank.

Method of Data Analysis:
The data collected were edited, classified and tabulated for analysis. The analytical tools used in this
study are:
i. Comparative statement,
ii. Trend Percentage.,
iii. Ratio Analysis,
iv. Cash Flow Statement.

32
 CHAPTER-VII
DATA ANALYSIS

33
 Data Analysis
Data Analysis on Financial Highlights
Total Deposits
Current Account
Table No- 01 Current Account Deposits
Total Current Deposits Growth
Year
(₹ in billion) (in %)
FY 2020 962.70 8.22
FY 2021 1,022.27 6.19
FY 2022 1,361.70 33.20

Graph No- 01– Total Current Deposits (₹ in billion)

Total Current
Deposits
1,600.00
(₹ in billion)
1,361.70
1,400.00

1,200.00
1,022.27
962.70
1,000.00

800.00
600.00
400.00
200.00
-
FY 2020 FY 2021 FY 2022

Interpretation:
The above table 4.1 shows that the growth in Total Current Deposits of 3 Fiscal Years, from FY
2020to FY 2022.

From the above graph 4.1.1.1.A., in FY 2019, Total Current Deposits was ₹962.70 billion. It increased
to ₹1,022.77 billion in FY 2020, in the year 2021 it suddenly increased to
₹1,361.70 billion.

Graph No-02 Growth of Total Current Deposits in Percentage

Growth (in %)
33.20
35.00
30.00
25.00
20.00 34
15.00
8.22
10.00 6.19
5.00
0.00
Interpretation:
Graph shows the growth of total current deposits in percentage. The growth of total current deposits
was 8.33% in year 2020, next year 2021 it decreased to 6.19%. The following year 2022 saw vigorous
growth which is 33.20%.
Savings Account

Table No-02 Saving Account Deposits

Total Saving Deposits Growth
Year
(₹ in billion) (in %)
FY 2020 2,276.71 13.29
FY 2021 2,455.91 7.87
FY 2022 2,954.53 20.30

35
Graph No-03 Total Savings Deposits (₹ in billion)

Total Savings
Deposits
3,500.00
(₹ in billion)
2,954.53
3,000.00

2,455.91
2,500.00 2,276.71

2,000.00

1,500.00

1,000.00

500.00

-
FY 2020 FY 2021 FY 2022

Interpretation:
Above graph shows that the total savings deposits were ₹2,276.71 billion in fiscal year 2020, and
increased by ₹2,455.91 billion the following year 2021. And this increase remained at ₹2,945.53
billion in the year 2022.

Graph No-04 Growth of Total Savings Deposits in Percentage

Growth (in %)
25.00

20.30
20.00

15.00 13.29

10.00 7.87

5.00

0.00
FY 2020 FY 2021 FY 2022

36
Interpretation:
The above percentage graph 4.1.1.2.B. shows that there was a growth of 13.29% in 2019 which
decreased to 7.87% in the next year 2020. But in 2021, there is a rapid increase to 20.30%.
Term Deposits
Table No-03 Total Term Deposits (₹ in billion)
Total Term Deposits Growth
Year
(₹ in billion) (in %)
FY 2020 3,289.79 21.37
FY 2021 4,231.51 28.63
FY 2022 5,008.99 18.37

Graph No-05 Total Term Deposits (₹ in billion)

Total Term
Deposits
6,000.00
(₹ in billion)

5,008.99
5,000.00
4,231.51

4,000.00
3,289.79

3,000.00

2,000.00

1,000.00

-
Interpretation:
2020 2021 2022
Above Graph 4.1.1.3.A. shows that, in FY 2020, the total term deposits were ₹3,289.79 billion. Next
year in 2021, total term deposits increased to ₹4,231.51 billion. This growth continued and the
following fiscal year in 2022, the total term deposits reached
₹5,008.99 billion.

Graph No-06 Growth of Total Term Deposits in Percentage

Growth37(in %)
35.00

28.63
30.00
 Interpretation:
As shown in the above graph ., the total term deposits growth in fiscal year 2020 was 21.37%. The
term deposits had a good growth and increased to 28.63% in fiscal year 2021. But in the next fiscal
year 2022, the growth graph is seen going in descending order.
Year 2022 sees a low growth of 18.37%. This graph shows that the total deposits of ICICI Bank
increased first steep rise but also a steep decline.

Total Deposits

Table No-04Total Deposits (₹ in billion)

Total Deposits Growth
Year
(₹ in billion) (in %)
FY 2020 6,529.20 16.39
FY 2021 7,709.69 18.08
FY 2022 9,325.22 20.95

Graph No-07 Total Deposits (₹ in billion)

Total Deposits
(₹ in billion)
10,000.00 9,325.22
9,000.00

8,000.00 7,709.69

7,000.00 6,529.20

6,000.00

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

-
2020 2021 2022

Total Deposits 38 Expon. (Total Deposits

(₹ in billion) (₹ in billion))
Interpretation:
The above graph 4.1.1.4.A. shows that, the total deposits in the fiscal year 2019 was
₹6,529.20 billion. In the next fiscal year 2020, the total deposits increased by ₹1180.49 billion to
₹7,709.69 billion. In the following fiscal year 2021, these increases continued and the total deposit
increased by ₹1,615.53 billion to ₹9,325.22 billion.

39
Graph No-08 Growth of Total Deposits in Percentage

Growth (in %)
25.00
20.95

20.00 18.08
16.39

15.00

10.00

5.00

0.00
2019.5 2020 2020.5 2021 2021.5 2022 2022.5

Growth
(in %)

Interpretation:
In the given graph 4.1.1.B., there is a growth of 16.39% in total deposits in the fiscal year 2020, this
growth is sustained and goes up to 18.08% in the next fiscal year 2021. The growth graph remained
in an ascending order and the growth continued to 20.95% in the following year fiscal 2022. Overall,
the total deposit of ICICI Bank continued to increase continuously for the last 3 years.

Total Advances
Table No-05 Total Advances
Retail Domestic corporate SME Overseas Total
Year (in %) (₹ in
(in %) (in %) (in %)
billion)
FY 2020 60.1 24 5.2 10.7 5,866.47
FY 2021 63.2 24.9 3.5 8.4 6,452.90
FY 2022 66.7 24.1 4.1 5.1 7,337.29

40
Graph No-09 Total Advances in Percentages

Total Advances (in %)

2021 2020 2019

5.1
Overseas
8.4
(in %)
10.7

4.1
SME
3.5
(in %)
5.2

24.1
Domestic corporate
24.9
(in %)
24

66.7
Retail
63.2
(in %)
60.1

0 10 20 30 40 50 60 70 80

Interpretation

In the above graph , the total advances of 3 years are given in percentages. This includes Retail,
Domestic corporate, SME and Overseas etc.

1. First of all, let us review the Retail segment. In this there was an increase of 60.01% in the
year 2020. It increased to 63.2% in the next year 2021. This growth continued to increase to
66.7% in the year 2022.

2. There is a slight ups and downs in the Domestic Corporate segment. Here the growth rate in
the year 2020 was 24%. It further increased marginally to 24.9% in the year 2021. And the
following year in 2022 this growth decreased by a small margin to 24.1%.

3. In SME segment the situation is somewhat similar as compared to Domestic Corporate. Here
the growth rate in the year 2020 is 5.2% percent. So in the year 2021, this rate reduced to
3.5%. But next year 2022 the growth rate will increase slightly to 4.1%.

4. The growth rate in Overseas is decreasing. Initially, there was an increase of 10.7% in the
year 2019. It came down to 8.4% in 2020 the following year. This downward trend continued,
with growth slowing to 5.1% in 2021. Overall growth of 5.1% was recorded in 2021.

41
Graph No-10 Total Advances (₹ in billion)

Total Advances (₹ in
8,000.00
billion)
7,337.29

7,000.00
6,452.90
5,866.47
6,000.00

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

0.00
2020 2021 2022

Total Expon. (Total

(₹ in billion) (₹ in billion))

Interpretation:
In the given graph(b), the growth of Total Advances is visible in 3 years with increasing margin. In
the fiscal year 2020, Total Advances was ₹5,866.47 billion, while in the next fiscal year 2021, it
became ₹6,452.90 billion. This increase continued and the total advances became ₹7,337.29 billion in
fiscal year 2022.

Net Worth

Table No-06 Net Worth (₹ in billion)

Net Worth Growth
Year
(₹ in (in %)
billion)
FY 2020 1083.68 3.1
FY 2021 1165.04 7.5
FY 2022 1475.09 26.6

42
Graph No-11 Total Net Worth (₹ in billion)

Net Worth (₹ in billion)

1600
1475.09

1400

1200 1165.04
1083.68

1000

800

600

400

200

0
2020 2021 2022

Interpretation:
Total Net-worth in the fiscal year 2020 was ₹1,083.68 billion. The total net worth increased to
₹1,165.04 billion in fiscal year 2021. This growth continued and the total net worth increased to
₹1,475.09 billion in the fiscal year 202

43
Capital Adequacy (in %)

Table No-07 Capital Adequacy

Common Equity
Year Tier I Tier II Total
Tier 1
2020 15.09 1.80 16.89 13.63
2021 14.72 1.39 16.11 13.39
2022 18.06 1.06 19.12 16.8

Graph No-12 Capital Adequacy -Tier I (in %)

Tier I
20
18.06
18

16 15.09 14.72
14

12

10

0
2020 2021 2022

Tier I Linear (Tier I)

Interpretation:
Capital Adequacy has four parts as given above namely Tier I, Tier II, Common Equity Tier 1 and
Total. There is an opposite difference between Tier I and Tier II.
As shown in graph Tier I had a growth rate of 15.09% in the fiscal year 2020. The following fiscal
year 2021, it declined slightly to 14.72%. But in the following fiscal year2022, the growth rate
increased sharply to 18.06%.

44
Graph No-13 Capital Adequacy -Tier II (in %)

Tier II
2.00
1.80
1.80
1.60
1.39
1.40
1.20 1.06
1.00
0.80
0.60
0.40
0.20
0.00
2020 2021 2022

Interpretation:
As shown in graph the growth in Tier II was 1.80% in the year 2020. But in the next year 2021, the
growth rate decreased to 1.39%. This decline continues, with the growth rate settling at 1.06% in the
year 2022.

Graph No-14 Capital Adequacy-Common Equity Tier 1 (in %)

Common Equity Tier 1

19.5 19.12
19
18.5
18
17.5
16.89
17
16.5 16.11
16
15.5
2019.5 2020 2020.5 2021 2021.5 2022 2022 .5

Common Equity
Tier 1

45
Interpretation:
The graph . of Common Equity Tear 1 initially shows a downward trend in growth rate and then
the graph shows an upward trend. Common Equity Tier 1 was 16.89% in the year 2020 and further
decreased to 16.11% in the year 2021. But in the year 2022, this rate increased rapidly and stabilized
at 19.12%.

Graph No-15 Capital Adequacy-Total Capital Adequacy (in %)

Total Capital Adequacy in

18
%
16.8

16
13.63 13.39
14

12

10

0
Total

2020 2021 2022

Interpretation:
As shown in graph 4.1.4.D., Total Capital Adequacy rate was 13.63% in the year 2020. It decreased
slightly to 13.39% in 2021. But next year in 2022 the growth rate will increase to 16.8%.

46
Net Interest Income (NII) & Net Interest Margin (NIM)

Table No-08 Net Interest Income & Net Income Margin

NII NIM
Year (₹ in (in %)
billion)
2020 270.15 3.42
2021 332.67 3.73
2022 389.89 3.69

Graph No-16 Net Interest Income (₹ in billion)

Net Interest Income

(NII)
450
₹ in billion
389.89
400

350 332.67

300 270.15

250

200

150

100

50

0
NII
(₹ in billion)

2020 2021 2022

Interpretation:
As shown in graph 4.1.5.A., the growth rate of Net Interest Income has been increasing over the three
years. NII was 270.15 billion in the year 2020, while it increased to 332.67 billion in the year 2021.
This growth rate will continue to be 389.89 billion in the year 2022. ICICI Bank's NII has been
increasing year on year.

47
Graph No-17 Net Interest Margin (in %)

Net Interest Margin

(NIM)
3.80
in %
3.75 3.73

3.69
3.70

3.65

3.60

3.55

3.50

3.45 3.42

3.40
2019.5 2020 2020.5 2010 2021.5 2022 2022.5

NIM
(in %)

Interpretation:
If you look at the graph 4.1.5.B. of Net Interest Margin, there is a slight difference in the growth rate.
NIM was 3.42% in the year 2020, it became 3.73 in the next year 2021. Here a good increase is seen
in the percentages of NIM. But in the year 2022, the growth rate slows down a bit, reaching 3.69%.
The rate of growth seems to be a bit slower here.

Provision Coverage Ratio (in %)

Table No-09 Provision Coverage Ratio

Year PCR (in %)

FY 2020 70.6
FY 2021 75.7
FY 2022 77.7

48
Graph No-18 Provision Coverage Ratio (in %)

Provision Coverage Ratio (in %)

79
77.7
78

77
75.7
76

75

74

73

72
70.6
71

70
2018.5 2019 2019.5 2020 2020.5 2021 2021.5

PCR (in %)

Interpretation:
As shown in graph 4.1.6. above, ICICI Bank's Provision Coverage Ratio (PCR) has been increasing
every three years. In the fiscal year 2019, PCR was 70.6%. It increased to 75.7% in the following
fiscal year 2020. In the following fiscal year 2021, it further increased to 77.7%.

4.1.1. Standalone Net Profit

Table No-10 Standalone Net Profit

SNP
Year (Rs in Billion)
FY 2019 33.63
FY 2020 79.31
FY 2021 161.93

49
Graph No-19 Standalone Net Profit (₹ in billion)

Standalone Net Profit

180
161.93
160

140

120

100
79.31
80

60

40 33.63

20

0
SNP
(Rs in Billion)

2019 2020 2021

Interpretation:
Standalone Net Profit of ICICI Bank is growing at a fast pace and the difference in that growth is
clear in the above given graph 4.1.7. ICICI Bank's SNP in the fiscal year 2019 was
33.63 billion. It has doubled to 79.31 billion in the fiscal year 2020. In the following fiscal year
2021 as well, this upward trend of growth continued and accelerated to 161.93 billion.

4.1.2. Core Operating Profit

Table No- 11 Core Operating Profit

COP
Year (Rs in billion)
FY 2020 220.72
FY 2021 268.08
FY 2022 313.51

50
Graph No-20 Core Operating Profit (₹ in billion)

Core Operating Profit

(₹ in billion)
350
313.51
300 268.08

250 220.72

200

150

100

50

0
2020 2021 2022

COP Expon. (COP

(Rs in billion) (Rs in billion))

Interpretation:
Analyzing the data available for 3 years, it is clear that ICICI Bank's Core Operating Profit is
increasing year on year. In the fiscal year 2020, COP was 220.72 billion, while in the fiscal year 2021,
it increased to 268.08 billion. This growth continues in a similar ascending order and reached 313.51
billion in the fiscal year 2022.

51
Data Analysis on Balance Sheet

Current Ratio

Table No- 12 Current Ratio

Current Assets Current Liabilities Current Ratio
Year
(₹ in crores) (₹ in crores) (in times)
2020 7,48,795.04 37,851.46 19.78
2021 8,40,423.38 47,994.99 17.51
2022 7,48,795.04 58,770.37 12.74

Formula:

Current Assets
Current Ratio =
Current Liabilities

Graph No-21 Current Assets & Current Liabilities

Current Assets & Current Liabilities

9,00,000.00 8,40,423.38
8,00,000.00 7,48,795.04 7,48,795.04

7,00,000.00

6,00,000.00

5,00,000.00

4,00,000.00

3,00,000.00

2,00,000.00

1,00,000.00 37,851.46 47,994.99 58,770.37

-
2020 2021 2022

Current Assets Current Liabilities

(₹ in crores) (₹ in crores)

52
Interpretation
Looking at the graph above,
1. Current Assets of ICICI bank was ₹7,48,795.04 Crores in the year 2020, it will increase to
₹8,40,423.38 Crores in the next year 2021. This growth continued like this and in the year
2022, the Bank's Current Assets reached ₹7,48,795.04 Crores.

2. Looking at the Current Liabilities side of the graph, it can be seen that the Current Liabilities of
ICICI Bank is also increasing. In the year 2020, Current Liabilities of the bank was
₹37,851.46 Crores, it increased to ₹47,994.99 Crores in the next year 2021. This increase
continued and the current liabilities of the bank became
₹58,770.37 Crores in the year 2022.

Graph No-22 Current Ratio

Current Ratio
(in times)
25.00
19.78
20.00 17.51

15.00 12.74

10.00

5.00

0.00
2019.5 2020 2020.5 2021 2021.5 2022 2022.5

Current Ratio
(in times)

Interpretation:

Looking at the above graph, it can be seen that the current ratio of the bank was 19.78 in the year
2020. It increased to 17.51 in the next year 2021. The descending sequence continued like this and in
the year 2022 the current ratio of the bank became 12.74.

53
Absolute Liquidity Ratio
Absolute Ratio is also known as Cash Ratio.

Cash in Hand + Marketable Securities

Absolute Ratio =
Current Liabilities

Table No- 13Absolute Liquidity Ratio

Cash and Marketable
Current Liabilities Absolute
Year Bank Securities
(₹ in (₹ in crores) Liquidity Ratio
(₹ in
crores) crores)
FY 2020 80296.29 0 37851.46 2.12
FY 2021 119155.74 0 47994.99 2.48
FY 2022 133128.25 0 58770.37 2.27

Graph No-23 Absolute Current Ratio (in time)

Absolute Liquidity Ratio

(in times)
2.55
2.50
2.48
2.45
2.40
2.35
2.30
2.25 2.27
2.20
2.15
2.12
2.10
2019.5 2020 2020.5 2021 2021.5 2022 2022.5

Absolute Liquidity Ratio

(in times)

Interpretation:

As shown in the graph 4.2.2., the Absolute Current Ratio of ICICI Bank was 2.12 in the year 2020, it
became 2.48 in the next year 2021. But in the year 2022, it decreased slightly and settled at 2.27.

54
Net Working Capital Ratio
Net Working Capital –

Current Assets Less:

Current Liabilities
Gross Working Capital Add:
Contingencies
Net Working Capital

Table No-14 Net Working Capital (₹ in Crores)

Current Current Net Working
Year Contingencies
Assets Liabilities Capital
2020 748795.04 37851.46 19,22,038.29 26,32,981.87
2021 840423.38 47994.99 25,23,825.80 33,16,254.19
2022 748795.04 58770.37 26,48,640.67 33,38,665.34

Graph No-24 Net Working Capital (₹ in Crores)

Net Working Capital

(₹ in Crores)
40,00,000.00

35,00,000.00 33,16,254.19 33,38,665.34

30,00,000.00
26,32,981.87
25,00,000.00

20,00,000.00

15,00,000.00

10,00,000.00

5,00,000.00

0.00
2020 2021 2022

55
Interpretation:
As shown in the above graph4.2.3.1., the Net Working Capital of ICICI Bank in the year 2020
was ₹26,32,981.87 crores. It became ₹33,38,665.34 crores in the next year 2021. But in the year
2022, Net Working Capital increased slightly to ₹33,38,665.34 crores.

Net Working Capital Ratio –

Current Assets -Current Liabilities

NWCR =
Total Assets

Table No-15 Net Working Capital Ratio (in times)

Net
Year Current Assets Current Liabilities Total Assets Working
Capital
Ratio
2020 748795.04 37851.46 929652.2 0.76
2021 840423.38 47994.99 1053485.03 0.75
2022 748795.04 58770.37 1174755.89 0.59

Graph. Net Working Capital Ratio (in times)

Net Working Capital Ratio

0.90

0.80

0.70 0.76 0.75

0.60

0.50 0.59

0.40

0.30

0.20

0.10

0.00
2019.5 2020 2020.5 2021 2021.5 2022 2022.5

Net Working Capital Ratio Linear (Net Working Capital Ratio)

56
CHAPTER-VIII
FINDINGS

57
 Findings
1) Analysis has been done on the data provided by the bank using important parameters
related to the bank. The following parameters have been applied in the study of this project
a) Total Deposits Total Advances f) Total Balance Sheet
g) Segmental Revenue
b) Capital Adequacy Ratio
h) Current Ratio
c) Net Interest Income (NII)
i) Liquid Ratio
d) Provision Coverage Ration
j) Absolute Liquidity Ratio
e) Gross & Net NPA
k) Net Working Capital Rati
2) From the data analysis done after all the above parameters, it appears that ICICI bank was
in a growth position in the year 2019 but in the year 2020 the growth rate of the bank
decreased slightly, but due to the revised regulations and improved planning by the bank,
the growth rate of the bank will increase again in the year 2021. This shows that ICICI
bank is progressing well in the banking sector across India.
3) After analyzing the data based on short term liquidity of ICICI Bank, it appears that the
bank has enough short-term assets which can meet the cash requirement of the bank if
required. Compared to the year 2019, the year 2020 sees a slight dip which recovers in
2021.

58
 CHAPTER-IX
SUGGESTIONS AND
CONCLUSION

59
 Suggestion and Conclusion

This project of Financial Analysis in the production concern is not merely a work of the project.
But a brief knowledge and experience of that how to analyze the financial performance of the
firm.
The study undertaken has brought in to the light of the following conclusions.
 According to this project I came to know that from the analysis of financial statements it is
clear that ICICI Bank Ltd. have been incurring profit during the period of study.
 The company’s overall position is at a good position. Particularly the current year’s position
is well due to raise in the profit level from the last year position.
 It is better for the organization to diversify the funds to different sectors in the present market
scenario.
 After analysis it is seen that the bank is growing in every segment. ICICI Bank is performing
well in Total Deposit, Total Advances, Net Worth, Capital Adequacy, NII & NIM, Provision
Coverage Ratio, Standalone Net Profit and Core Operating Profit.

60
 CHAPTER-X
LIMITATIONS

61
 Limitations of the Study
 This study is based on three-year financial statement conclusion and
recommendations are based on such limited data.
 Bank cannot provide the sufficient qualitative information for in-depth analysis of the
financial analysis undertaken this project.
 Project study carried out during 56 days of internship in bank. This period is not
sufficient to undertake the in-depth analysis of project study.

62
CHAPTER-XI
BIBLIOGRAPHY

63
 Bibliography

A) Journals:

[1] Analysis of financial statement, page no. 171, 172.

https://ncert.nic.in/textbook/pdf/leac204.pdf

[2] Douglas J. Elliott (June 2014). Bank Liquidity Requirements: An Introduction and
Overview. The Brookings Institution June 23, 2014.

[3] Dr. R. Mayilsamy, D. Priya Dharshiny (August2021). A STUDY ON FINANCIAL

PERFORMANCE OF ICICI BANK. EPRA International Journal of Multidisciplinary
Research (IJMR)

[4] Dr. Syed Shujat Husain, Noor Alam. (April 2021). An Analytical Study on Financial
Performance of the ICICI Bank. International Journal of Science and Research (IJSR).
ISSN: 2319-7064, SJIF (2019): 7.583

[5] Geetha Ramaswamy (2014), “A study on the financial performance efficiency of selected
cement industries in India”, International journal of emerging research and technology, Vol
2, Issue 5, pp 106-111.

[6] Goel, C., & Rekhi, C. B. (2013). A Comparative Study on the Performance of Selected
Public. Journal of Business Management & Social Sciences Research, 46- 56.

[7] Kumbirai (2010), “A financial ratio analysis of commercial bank performance in South
Africa” Journal of African Review of Economics and Finance, Vol 2, No 1, pp 105-110.

[8] Magdalene Peter, S. Fabiyola Kavitha, J.Hameed Hussian (August 2019). Financial
Performance of ICICI Bank. International Journal of Recent Technology and Engineering
(IJRTE) ISSN: 2277-3878, Volume-8, Issue-2S8, August 2019.

[9] Manju Rajan Babu (June 2019), Research on Profitability and Liquidity Position of
Banks with Reference to Pre and Post-Merger. International Journal of Recent Technology
and Engineering (IJRTE) ISSN: 2277-3878, Volume-8, Issue-1S4, June 2019.

[10] Saini, A. (2015). Financial Performance: Comparitive Study of SBI And ICICI Bank.
International Journal of Business Management, VOL. 2(1).

[11] Shikhil Munjal, Dr. Krishan Lal Grover (March 2022). Financial Performance Analysis: A
Case Study of ICICI Bank. International Research Journal of Modernization in Engineering
Technology and Science, Volume:04/Issue:03. e- ISSN: 2582-5208.

64
[12] Srividhya S, Dr. C. R. Senthilnathan, Dr. N. Kengatharn, Umadevi R, (2020). A Study on
Financial Ratio Analysis of Planys Technologies Pvt. Ltd. India. Vol 19 (Issue 3): pp. 4642-
4652.

[13] Singh, A., & Sharma, A. K. (2016). An empirical analysis of macroeconomic and bank-
specific factors affecting liquidity of Indian banks.

[14] Tatuskar, S. (2010). A sudy of Financial Performance of Select Indian Scheduled

Commercial Banks Using Camels Methodology for 2006-2010. International Journal of
Research in Commerce & Management, 105-121.

65
 B) Websites:
[1] https://www.icicibank.com/about-us/history

[2] https://www.bankbazaar.com/banks/icici-bank.html

[3] https://byjus.com/govt-exams/types-of-bank-accounts/

[4] https://keydifferences.com/difference-between-loans-and-advances.html

[5] https://economictimes.indiatimes.com/definition/net-worth

[6] https://www.accountingtools.com/articles/capital-adequacy-ratio.html

[7] https://www.investopedia.com/terms/n/net-interest-income.asp

[8] https://cleartax.in/g/terms/net-interest-margin

[9] https://scripbox.com/pf/provision-coverage-ratio/

[10] https://www.wallstreetmojo.com/financial-ratios/

[11] https://www.fincash.com/l/brand/icici-bank

[12] https://www.icicibank.com/about-us/article/news-performance-review-quarter- ended-

march-31-2021-20212404210238817

[13] https://www.investopedia.com/terms/s/standalone_profit.asp#:~:text=What%20Is
%20Standalone%20Profit%3F,a%20firm%20as%20a%20whole

[14] https://www.policybazaar.com/fd-interest-rates/articles/types-of-bank-deposits- and-

accounts-in- india/#:~:text=Traditionally%2C%20there%20are%20four
%20types,Accounts%2 C%20and%20Fixed%20Deposit%20Accounts.

[15] https://www.lawinsider.com/dictionary/total- deposits#:~:text=Total%20Deposits%20means

%20at%20any,deposits%20owing%2 0by%20the%20Borrower.

66
 C)Appendices
Balance Sheet Balance Sheet Balance Sheet Balance Sheet
ICICI Bank Ltd. ICICI Bank ICICI Bank ICICI Bank
Ltd. Ltd. Ltd.
₹ (in Crores) ₹ (in Crores) ₹ (in Crores) ₹ (in Crores)
Particulars Mar'22 Mar'21 Mar'20
Liabilities 12 Months 12 Months 12 Months
Share Capital 1386.51 1298.25 1294.14
Reserves & Surplus 143029.08 112091.29 104029.40
Net Worth 147509.18 116504.41 108368.04
Secured Loan 91630.96 162896.76 165319.97
Unsecured Loan 932522.16 770968.99 652919.67
TOTAL LIABILITIES 1171662.30 1050370.16 926607.69
Assets Assets Assets Assets
Gross Block 8877.58 8410.29 7931.43
(-) Acc. Depreciation .00 .00 .00
Net Block 8877.58 8410.29 7931.43
Capital Work in Progress .00 .00 .00
Investments 281286.54 249531.48 207732.68
Inventories .00 .00 .00
Sundry Debtors .00 .00 .00
Cash and Bank 133128.25 119155.74 80296.29
Loans and Advances 807140.31 721267.64 668498.75
Total Current Assets 940268.56 840423.38 748795.04
Current Liabilities 58770.37 47994.99 37851.46
Provisions .00 .00 .00
Total Current Liabilities 58770.37 47994.99 37851.46
NET CURRENT ASSETS 881498.18 792428.40 710943.58
Misc. Expenses .00 .00 .00
TOTAL ASSETS(A+B+C+D+E) 1174755.89 1053485.03 929652.20

67
68