A SUMMER TRAINING PROJECT REPORT ON

“FINANCIAL ANALYSIS OF BANKING INDUSTRY ICICI

BANK”

Submitted to:
Dr. A.P.J. Abdul Kalam Technical University, Lucknow

In the partial fulfillment of the award of the degree MASTERS OF BUSINESS

ADMINISTRATION (MBA)

Batch: 2023-25
Under the Guidance of: MRS. ROSHY PANDEY

(Faculty Guide)

Submitted By:
ADARSH SAHU

Roll No. : 2311770700001

Semester : 3rd

IED HOTEL MANAGEMENT, LUCKNOW

 Dr. A.P.J. Abdul Kalam Technical University, Lucknow

Date:……………………

TO WHOM IT MAY CONCERN

This is to certify that MR. ADARSH SAHU is a bonafide student of MBA 3rd
semester in our Institute. He/ She has submitted Summer Training Report titled
“FINANCIAL ANALYSIS OF BANKING INDUSTRY ICICI BANK” to fulfill the
partial requirement of Dr. AKT University, Lucknow.

He has completed the Summer Training Project under the partial guidance of Mrs. Roshy Pandey.

Name of Project Guide Mrs. Roshy Pandey

School of Management
 ACKNOWLEDGEMENT

I hereby extend my sincere thanks to our institute, all the faculty members. I would
like to express my deep sense of gratitude to my supervisor and Project Guide Mrs.
Roshy Pandey, Dr. A.P.J. Abdul Kalam Technical University, Lucknow, whose
valuable guidance helped me in completion of this report successfully. He constantly
advised and encouraged me to complete the task within time frame. I am also thankful
to all the faculty of IED without whose blessings this project could not have taken the
present form. Also I am thankful to finally I take the opportunity to put on record the
deepest sense of regard and respect to my parents, who enabled me to make this
project complete.

With my due regard I wish to express my heartfelt appreciation to many people, who
helped me directly and indirectly to complete my summer internship Report and this
report too.

I would also wish to express my thanks to all the staff members of personnel
department under whom I completed my training as they have provided me valuable
guidance, timely advice and communication during my training.

ADARSH SAHU

MBA - III Semester

ROLL NO. 2311770700001

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 TABLE OF CONTENT

Sr No. Topics Page No.

1. INTRODUCTION 1-12

2. COMPANY PROFILE 13-30

3. REVIEW OF LITERATURE 31-32

4. RESEARCH METHODOLOGY 33

5. DATA ANALYSIS 34-45

6. CONCLUSION 46

7. BIBLIOGRAPHY 47

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 INTRODUCTION

MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides crucial financial
services. The principal type of baking in the modern industrial world is commercial banking & central
banking.

Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of
money from the public, repayable on demand or otherwise and withdraw by cheque, draft or
otherwise."

-Banking Companies (Regulation) Act,1949

The concise oxford dictionary has defined a bank as "Establishment for custody of money
which it pays out on customers order." In fact this is the function which the bank performed when
banking originated.

"Banking in the most general sense, is meant the business of receiving, conserving & utilizing
the funds of community or of any special section of it."

-By H. Wills & J. Bogan

"A banker of bank is a person, a firm, or a company having a place of business where credits
are opened by deposits or collection of money or currency or where money is advanced and waned.

-By Findlay Sheras

Thus,

A Bank :

 Accept deposits of money from public,

 Pays interest on money deposited with it.
 Lends or invests money
 Repays the amount on demand,
 Allow the money deposited to be withdrawn by cheque or draft.

Banks have played a pivotal role in the process of development of the district over the years, especially
after the formation of the district in 1993. Apart from dispensing credit, the Banks have also brought

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about social changes. The contribution of the banking sector in the field of overall development of the
district is elaborated in the following paragraphs.

At the beginning of the 20th century, Indian economy was passing through a relative period of
stability. Around five decades have elapsed since the India's First war of Independence, and the social,
industrial and other infrastructure have developed. At that time there were very small banks operated
by Indians, and most of them were owned and operated by particular communities. The banking in
India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank
of Bengal, and the Bank of Madras - which later on merged to form the Imperial Bank of India, and
Imperial Bank of India, upon India's independence, was renamed the State Bank of India. There were
also some exchange banks, as also a number of Indian joint stock banks. All these banks operated in
different segments of the economy.

The presidency banks were like the central banks and discharged most of the functions of central
banks. They were established under charters from the British East India Company. The exchange
banks, mostly owned by the Europeans, concentrated on financing of foreign trade. Indian joint stock
banks were generally undercapitalized and lacked the experience and maturity to compete with the
presidency banks, and the exchange banks. There was potential for many new banks as the economy
was growing. Lord Carson had observed then in the context of Indian banking: "In respect of banking
it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden
bulkheads into separate and cumbersome compartments.”

Under these circumstances, many Indians came forward to set up banks, and many banks were set up at
that time, a number of which have survived to the present such as Bank of India and Corporation Bank,
Indian Bank, Bank of Baroda, and Canara Bank.

Indian banking sector can be divided mainly into four broad categories namely public sector Banks, old
private sector banks, new private sector banks, and foreign banks. The other categories of banks
include co-operative banks and regional rural banks. Since these banks don’t form a substantial chunk
of the banking system, we will focus on the first four categories.

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FOREIGN BANKS IN INDIA

Foreign Banks are likely to succeed in their niche markets and be the innovators in terms of technology
introduction in the domestic scenario. The outlook for the private sector banks indeed looks to be more
promising vis-à-vis other banks. While their focused operations lower but more productive employee
force etc will stand them good, possible acquisitions of PSU banks will definitely give them the much
needed scale of operations and access to lower cost of funds.

 Standard charted Bank

 Deutsche Bank

 Bank of America

 Citi Bank

 ABN Amro Bank

 HSBC Bank

FUNCTIONS OF BANKS

PRIMARY FUNCTIONS

 Acceptance of Deposits
 Making loans & advances
 Loans
 Overdraft
 Cash Credit
 Discounting of bills of exchange
SECONDARY FUNCTIONS

 Agency functions
 Collection of cheques & Bills etc.
 Collection of interest and dividends.
 Making payment on behalf of customers
 Purchase & sale of securities
 Facility of transfer of funds
 To act as trustee & executor.

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UTILITY FUNCTIONS :

 Safe custody of customers valuable articles & securities.

 Underwriting facility
 Issuing of traveler’s cheque letter of credit
 Facility of foreign exchanges
 Providing trade information
 Provide information regarding credit worthiness of their customer.
CLASSIFICATION OF BANKS
CLASSIFICATION ON BASIS OF OWNERSHIP

On the basis of ownership banks are of the following types :

1. PUBLIC SECTOR BANK

Public sector banks are those banks which are owned by the Government. The Govt. runs these
Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also
nationalized. Therefore in 1980 the number of nationalized bank 20. But at present there are 9
banks are nationalized. All these banks are belonging to public sector category. Welfare is their
principle objective.

2. PRIVATE SECTOR BANKS

These banks are owned and run by the private sector. Various banks in the country such as
ICICI Bank, HDFC Bank etc. An individual has control over their banks in preparation to the
share of the banks held by him.

3. CO-OPERATIVE BANKS

Co-operative banks are those financial institutions. They provide short term & medium term
loans to their members. Co-operative banks are in every state in India. Its branches at district
level are known as the central co-operative bank. The central co-operative bank in turn has its
branches both in the urban & rural areas. Every state co-operative bank is an apex bank which
provides credit facilities to the central co-operative bank. It mobilized financial resources from
richer section of urban population by accepting deposit and creating the credit like commercial
bank and borrowing from the money mkt. It also gets funds from RBI.

ii ACCORDING TO RESERVE BANK OF INDIA ACT 1935

Banks are classified into following two categories son the basis of reserve bank Act 1934.

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1. SCHEDULED BANK

These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock company.
It is a co-operative organization. These banks find their mention in the second schedule of the
reserve bank.

2. NON SCHEDULED BANK

These banks are not mentioned in the second schedule of reserve bank paid up capital of these
banks is less then Rs.5 lacks. The no. such bank is gradually tolling in India.

iii CLASSIFICATION ACCORDING TO FUNCTION

On the basis of functions banks are classified as under :-

1. COMMERCIAL BANKS

The commercial banks generally extend short-term loans to businessmen & traders. Since their
deposits are for a short-period only. They cannot lend money for a long period. These banks
reform various types or agency job for their customers. These banks are not in a position to
grant long-term loans to industries because their deposits are only for a short period. The
majority of joint stock banks in India are commercial banks which finance trade & commerce
only.

2. SAVING BANKS

The principle function of these banks is to collect small saving across the country and put them
into productive use. These banks have shown marked development in Germany & Japan.
These banks are established in HAMBURG City of Germany in 1765. In India a department of
post offices functions as a saving banks.

3. FOREIGN EXCHANGE BANKS

These are special types of banks which specialize in financing foreign trade. Their main
function is to make international payments through purchase & sale of exchange bills. As it
well known, the exporters of a country prefer to receive the payments for exports in their own
currency. Thus these banks convert home currency into foreign currency and vice versa. It is
on this account that these banks have to keep with themselves stock of the currency of various
countries. Along with that, they have to open branches in foreign countries to carry on their
business.

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4. INDUSTIRAL BANKS

The industrial banks extends long term loans to industries. In fact, they also help industrials
firms to sell their debentures and shares. Sometimes, they even underwrite the debentures &
shares of big industrial concerns.

5. INDIGENIOUS BANKS

These banks found their origin in India. These banks made a significant contribution to the
development of agricultural and industries before independence. Mahajans, rural moneylenders
have been the forerunner of these banks in India.

6. CENTRAL BANK

The central bank occupies a pivotal position in the monetary and banking structure of the
country. The central bank is the undisputed leader of the money market. As such it supervises
controls and regulates the activities of commercial banks affiliated with it. The central bank is
also the higher monetary institution in the country charged with the duty & responsibility of
carrying out the monetary policy formulated by the government. India's central bank known as
the reserve bank of India was set up in 1935.

7. AGRICULTURAL BANK

The commercial and the industrial banks are not in a position to meet the credit requirements
of agriculture. Hence, there arises the need for setting up special type of banks of finance
agriculture. The credit requirements of the farmers are two types. Firstly the farmers require
short term loans to buy seeds, fertilizers, ploughs and other inputs. Secondly, the farmers
require long-term loans to purchase land, to effect permanent improvements on the land to buy
equipment and to provide for irrigation works. There are two types of agriculture banks.

1. Agriculture co-operative banks, and

2. Land mortgage banks. The farmer provide short-term credit, while the letter extend
long-term loans to the farmer

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Role of Banks:

Banks play a positive role in economic development of a country as repositories of community’s

savings and as purveyors of credit. Indian Banking has aided the economic development during the last
fifty years in an effective way. The banking sector has shown a remarkable responsiveness to the needs
of planned economy. It has brought about a considerable progress in its efforts at deposit mobilization
and has taken a number of measures in the recent past for accelerating the rate of growth of deposits.
As recourse to this, the commercial banks opened branches in urban, semi-urban and rural areas and
have introduced a number of attractive schemes to foster economic development.

The activities of commercial banking have growth in multi-directional ways as well as

multi-dimensional manner. Banks have been playing a catalytic role in area development, backward
area development, extended assistance to rural development all along helping agriculture, industry,
international trade in a significant manner. In a way, commercial banks have emerged as key financial
agencies for rapid economic development.

By pooling the savings together, banks can make available funds to specialized
institutions which finance different sectors of the economy, needing capital for various purposes, risks
and durations. By contributing to government securities, bonds and debentures of term-lending
institutions in the fields of agriculture, industries and now housing, banks are also providing these
institutions with an access to the common pool of savings mobilized by them, to that extent relieving
them of the responsibility of directly approaching the saver. This intermediation role of banks is
particularly important in the early stages of economic development and financial specification. A
country like India, with different regions at different stages of development, presents an interesting
spectrum of the evolving role of banks, in the matter of inter-mediation and beyond.

Mobilization of resources forms an integral part of the development process in India.

In this process of mobilization, banks are at a great advantage, chiefly because of their network of
branches in the country. And banks have to place considerable reliance on the mobilization of deposits
from the public to finance development programmes. Further, deposit mobilization by banks in India
acquired greater significance in their new role in economic development.

Commercial banks provide short-term and medium-term financial assistance. The

short-term credit facilities are granted for working capital requirements. The medium-term loans are
for the acquisition of land, construction of factory premises and purchase of machinery and equipment.
These loans are generally granted for periods ranging from five to seven years. They also establish
letters of credit on behalf of their clients favoring suppliers of raw materials/machinery (both Indian
and foreign) which extend the banker’s assurance for payment and thus help their delivery. Certain

7
transaction, particularly those in contracts of sale of Government Departments, may require guarantees
being issued in lieu of security earnest money deposits for release of advance money, supply of raw
materials for processing, full payment of bills on the assurance of the performance etc. Commercial
banks issue such guarantees also.

The Role of Reserve Bank of India (RBI) – Banker’s Bank:

The Reserve Bank of India (RBI) is the central bank of India, and was
established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
Since its inception, it has been headquartered in Mumbai. Though originally privately owned, RBI has
been fully owned by the Government of India since nationalization in 1949.

RBI is governed by a central board (headed by a Governor) appointed by the Central

Government. The current governor of RBI is Dr.Y.Venugopal Reddy (who succeeded Dr. Vimal Jalan
on September 6, 2003). RBI has 22 regional offices across India. The Reserve Bank of India was set up
on the recommendations of the Hilton Young Commission. The commission submitted its report in the
year 1926, though the bank was not set up for nine years.

Main Objective:

Monetary Authority
Formulates, implements and monitors the monetary policy.
Objective: maintaining price stability and ensuring adequate flow of credit to productive
sectors.

Regulator and supervisor of the financial system

Prescribes broad parameters of banking operations within which the country’s banking and
financial system functions.
Objective: maintain public confidence in the system, protect depositors’ interest and provide
cost-effective banking services to the public. The Banking Ombudsman Scheme has been
formulated by the Reserve Bank of India (RBI) for effective redresses of complaints by bank
customers

Manager of Exchange Control

Manages the Foreign Exchange Management Act, 1999.
Objective: to facilitate external trade and payment and promote orderly development and
maintenance of foreign exchange market in India.

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Issuer of currency
Issues and exchanges or destroys currency and coins not fit for circulation.
Objective: to give the public adequate quantity of supplies of currency notes and coins and in
good quality.

Developmental role
Performs a wide range of promotional functions to support national objectives.

Related Functions
Banker to the Government: performs merchant banking function for the central and the state
governments; also acts as their banker.
Banker to banks: maintains banking accounts of all scheduled banks.
Owner and operator of the depository (SGL) and exchange (NDS) for government bonds.

There is now an international consensus about the need to focus the tasks of a central bank upon central
banking. RBI is far out of touch with such a principle, owing to the sprawling mandate described
above.

Supervisory Functions:

In addition to its traditional central functions, the Reserve bank has certain non-
monetary functions of the nature of supervision of banks and promotion of sound banking in India. The
Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI wide powers of
supervision and control over commercial and cooperative banks, relating to licensing and
establishments, branch expansion, liquidity of their assets, management and methods of working,
amalgamation, reconstruction and liquidation. The RBI is authorized to carry out periodical inspections
of the banks and to call for returns and necessary information from them. The nationalization of 14
major Indian scheduled banks in July 1969 has imposed new responsibilities on the RBI for directing
the growth of banking and credit policies towards more rapid development of the economy and
realization of certain desired social objectives. The supervisory functions of the RBI have helped a
great deal in improving the standard of banking in India to develop on sound lines and to improve the
methods of their operation.

Promotional Functions:

With economic growth assuming a new urgency since Independence, the range of the
Reserve Bank’s functions have steadily widened. The Bank now performs a variety of developmental
and promotional functions, which, at one time, were regarded as outside the normal scope of central

9
banking. The Reserve Bank was asked to promote banking habit, extend banking facilities to rural and
semi-urban areas, and establish and promote new specialized financing agencies. Accordingly, the
Reserve bank has helped in the setting up of the IFCI and the SFC: it set up the Deposit Insurance
Corporation of India in 1963 and the Industrial Reconstruction Corporation of India in 1972. These
institutions were set up directly or indirectly by the Reserve Bank to promote saving habit and to
mobilize savings, and to provide industrial finance as well as agricultural finance. As far back as 1935,
the RBI set up the Agricultural Credit Department to provide agricultural credit. But only since 1951
the Bank’s role in this field has become extremely important. The Bank has developed the co-operative
credit movement to encourage saving, to eliminate money-lenders from the villages and to route its
short term credit to agriculture. The RBI has set up the Agricultural Refinance and Development
Corporation to provide long-term finance to farmers.

PRODUCTS AND SERVICES OFFERED BY BANKS

Broad Classification of Products in a bank:

The different products in a bank can be broadly classified into:

 Retail Banking.
 Trade Finance.
 Treasury Operations.

Retail Banking and Trade finance operations are conducted at the branch level while the wholesale
banking operations, which cover treasury operations, are at the hand office or a designated branch.

Retail Banking:

 Deposits
 Loans, Cash Credit and Overdraft
 Negotiating for Loans and advances
 Remittances
 Book-Keeping (maintaining all accounting records)
 Receiving all kinds of bonds valuable for safe keeping

Trade Finance:

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  Issuing and confirming of letter of credit.
Drawing, accepting, discounting, buying, selling, collecting of bills of exchange, promissory
notes, drafts, bill of lading and other securities.

Treasury Operations:

 Buying and selling of bullion. Foreign exchange

 Acquiring, holding, underwriting and dealing in shares, debentures, etc.
 Purchasing and selling of bonds and securities on behalf of constituents.

The banks can also act as an agent of the Government or local authority. They insure,
guarantee, underwrite, participate in managing and carrying out issue of shares, debentures, etc.

Apart from the above-mentioned functions of the bank, the bank provides a whole lot of other
services like investment counseling for individuals, short-term funds management and portfolio
management for individuals and companies. It undertakes the inward and outward remittances with
reference to foreign exchange and collection of varied types for the Government.

How to Operate DEMAT ACCOUNT?

One needs to open a Demat Account with any of the branches of the bank. After opening an
account with any bank, by filling the Demat request form one can handover the securities. The rest will
be taken care by the bank and the customer will receive credit of shares as soon as it is confirmed by
the Company/Register and Transfer Agent. There is no physical movement of share certification any
more. Any buying or selling of shares is done via electronic transfers.

1) If the investor wants to sell his shares, he has to place an order with his broker and give a
“Delivery Instruction” to his DP (Depository Participant). The DP will debit hi s account with
the number of shares sold by him.
2) If one wants to buy shares, he has to inform his broker about his Depository Account Number
so that the shares bought by him are credited in to his account.
3) Payment for the electronic shares bought or sold is to be made in the same way as in the case
of physical securities.

BANKING SERVICES

Banking covers so many services that it is difficult to define it. However, these basic
services have always been recognized as the hallmark of the genuine banker. These are…

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  The receipt of the customer’s deposits
 The collection of his cheques drawn on other banks
 The payment of the customer’s cheques drawn on himself

There are other various types of banking services like:

1) Advances – Overdraft, Cash Credit, etc.

2) Deposits – Saving Account, Current Account, etc.
3) Financial Services – Bill discounting etc.
4) Foreign Services – Providing foreign currency, travelers cheques, etc.
5) Money Transmission – Funds transfer etc.
6) Savings – Fixed deposits, etc.
7) Services of place or time – ATM Services.
8) Status – Debit Cards, Credit Cards, etc.

Customer Services in Commercial Banks:

Customer service is the service provided in support of a bank’s core products. Customer service often
includes answering questions; handling complaints. Customer service can occur on site (as when an
onstage employee helps a customer or answers a question) or it can occur over the phone or the
Internet. Quality customer service is essential to building cordial customer relationship.

Banking being a service industry, a lot depends on efficient and prompt customer service. Customer
service is the most important duty of the banking operations. Prompt and efficient service with smile
will develop good public relations reduce complaints and increase business.

Why is Customer Service Important?

 Changing customer expectations: Today the customer is more demanding and more
sophisticated than he or she was thirty years ago.
 The increased importance of customer service: With changing customer expectations,
competitors are seeing customer service as a competitive weapon with which they differentiate
their products and services.
 The need for a relationship strategy: To ensure that a customer service strategy that will
create a value preposition for customers should be formulated implemented and controlled. It
is necessary to give it a central role and not one that is subsumed in the various elements of the
marketing mix.

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 COMPANY PROFILE

Type Private, BSE & NSE, NYSE

Founded 1955 (as Industrial credit and Investment

corporation of India)

ICICI Bank Ltd.,

Headquarters ICICI Bank Towers,
Bandra Kurla
Mumbai, India

N Vaghul, K.V. Kamath, Chanda

Key people
Kochhar, V Vaidyanathan, Madhabi Puri

Banking
Insurance
Capital Markets and allied industries
Industry

Products Loans, Credit Cards, Savings, Investment

vehicles, Insurance etc.

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ICICI Bank (formerly Industrial Credit and Investment Corporation of India). ICICI Limited was
established in 1955 by the World Bank, the Government of India and the Indian Industry, for the
promotion of industrial development in India by giving project and corporate finance to the industries
in India.

ICICI Bank has grown from a development bank to a financial conglomerate and has become one of
the largest public financial institutions in India. ICICI Bank has financed all the major sectors of the
economy, covering 6,848 companies and 16,851 projects.

ICICI Bank Fact Files:

Network: 580 branches

ATMs: Over 2000

Abroad Subsidiaries: United Kingdom and Canada

Abroad branches: Singapore and Bahrain

Representative offices: United States, China, United Arab Emirates, and Bangladesh and South
Africa.

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 specialized subsidiaries and affiliates
in the areas of investment banking, life and non-life insurance, venture capital and asset management.
ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of
clients and leverage on its domestic banking strengths to offer products internationally.

ICICI Bank (BSE: ICICI) (Industrial Credit and Investment Corporation of India) is 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 1,491
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 specialized 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. ICICI Bank has got its equity shares listed on the stock
exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and
its ADRs on the New York Stock Exchange (NYSE).

14
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 hisave 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. Overseas, the Bank is targeting the NRI
(Non-Resident Indian) population in particular.

ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in
Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Center and representative
offices in the United States, United Arab Emirates, China, South Africa and Bangladesh. Our UK
subsidiary has established a branch in Belgium. ICICI Bank is the most valuable bank in India in terms
of market capitalization.

ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New
York Stock Exchange (NYSE).

ICICI Bank has formulated a Code of Business Conduct and Ethics for its Directors and
employees. At June 5, 2006, ICICI Bank, with free float market capitalization of about Rs. 480.00
billion (US$ 10.8 billion) ranked third amongst all the companies listed on the Indian stock exchanges.

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% 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 in 1955 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 project financing to Indian businesses. In the 1990s, ICICI transformed its business
from a development financial institution offering only project finance to a diversified financial service
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.

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

 We will leverage our people, technology, speed and financial capital to:

15
 be the banker of first choice for our customers by delivering high quality, world-class

service.

 Expand the frontiers of our business globally.

 Play a proactive role in the full realization of India’s potential.
 maintain a healthy financial profile and diversify our earnings across businesses and
geographies.
 Maintain high standards of governance and ethics.
 Contribute positively to the various countries and markets in which we operate.
 Create value for our stakeholders.

Product and Services

Service and banking of ICICI bank categorized in to personal banking, business banking and NRI
banking services.

Personal banking- Deposit in form of saving, recurring, term deposit, senior citizen deposit and
children depository account are there for individual customer can also avail of their housing,
automobile, farm equipment, business or personal loan scheme. Personal client can also invest in
mutual funds and participate in stock trading through ICICI bank.

Business banking – Business banking services of ICICI Bank are exhaustive. Project financing, deal
assessment, and land evaluation are investment banking services offered to corporate clients. Global
trade and cash management transaction services facilitate remittances and receipts across important
cities. Capital market and custodial services enable business houses to participate in equity trading and
transfer across major stock markets of world.
ICICI bank targets all segment of customer with various types of products and services. I
interacted with a a lot of customers and collect their feedback on the given services of
company, and feedback are positive response from all point of view. Customers are
beneficiary from both sides monetary as well as non monetary. The bank targets to add nearly
500,000 customers under the new scheme in the next one year and plans to offer auto loans
through the new online channel in the future, ICICI Bank's Executive Director, V
Vaidyanathan, said here.

"As of now, nearly 24 per cent of our customer transactions are happening through internet. We are
primarily targeting our urban customers, who constitute nearly 70 per cent of our total customer-base,"
Vaidyanathan said.

16
Customers, opting for the service can also benefit from the quantum optima facility, wherein if the
balance exceeds Rs 5,000, the money will automatically be transferred to a fixed deposit scheme, he
said. The facility, which also enable customers to transact between an ICICI Bank account and
accounts in other banks, is being offered free of cost, he said ICICI bank, presently, has above 2 crore
customers. The lender opened nearly 470 branches in the last fiscal. The lender has also plans to launch
'SMS n Cash' scheme later this week under which ICICI account holders can transfer funds to those
who do not have a bank account. ICICI bank is strongly committed to protecting the privacy of its
customers and has taken all necessary and reasonable measures to protect the confidentiality of the
customer information and its transmission through the world wide web and it shall not be held liable
for disclosure of the confidential information when in accordance with this privacy commitment or in
terms of the agreements, if any, with the customers.

ICICI bank Endeavour’s to safeguard and ensure the security of the information provided by the
customer. ICICI bank uses 128-bit encryption, for the transmission of the information, which is
currently the permitted level of encryption in India. When the information provided by the customers is
not transmitted through this encryption, the customer's system (if configured accordingly) will display
an appropriate message ensuring the best level of secrecy for the customer's information.

The customer would be required to cooperate with ICICI bank in order to ensure the security of the
information, and it is recommended that the customers necessarily choose their passwords carefully
such that no unauthorized access is made by a third party. To make the password complex and difficult
for others to guess, the customers should use combination of alphabets, numbers and special characters
(like! @, #, $ etc.). The customers should undertake not to disclose their password to anyone or keep
any written or other record of the password such that a third party could access it.

 ICICI bank undertakes not to disclose the information provided by the customers to any
person, unless such action is necessary to:
 Conform to legal requirements or comply with legal process;
 Protect and defend ICICI bank's or its affiliates rights, interests or property;
 Enforce the terms and conditions of the products or services; or
 Act to protect the interests of ICICI bank, its affiliates, or its members, constituents or of other
persons.

An employer the bank extends a lot of authority along with justified accountability to you. The
working culture is very collaborative in nature. It can be owed to the fact that the bank is highly
segmented with a lot of overlapping and mostly distinct roles and responsibility.ICICI Bank has
established itself as a one stop solution (Universal Bank) for all financial need of individuals and
institutions alike. The credit for the same can be attributed to its vast network, probably the largest

17
among private sector banks.This makes the life of an employee a lot easier, especially for those who
face the external customers. You do not have to justify your organization, it is only the product that has
to be pitched. As far as employee benefits are concerned, ICICI Bank offers a lot of financial benefits
ranging from your family health insurance to your kids school donations. The organization is sensitive
to the needs of its employees as this quality is one of the building blocks (DNA) of the organizational
culture. The organization will be giving you enough flexibility to innovate and come-up with new
ideas. It will also exhibit its in terms of well laid systems, processes and infrastructure. It will extend a
fast track growth for those with extraordinary talent at the same time offer stability to those who are
able to deliver satisfactorily.Overall, I would say it’s a lifetime experience to work with such a
behemoth organization. It might not be the best paymaster but it definitely will impress you with its
capability as the head master (Principal) of banking industry.there are huge competition between the
eployee to achieve theo goal.

ICICI use many type of advance technological software like Pinnacle 7.0 and Pinnacle7.016.Among
from this software ICICI bank uses the e-banking, core banking, mobile banking electronic display sy
ICICI Bank was using Teradata for its data warehouse. However, due to its proprietary hardware, the
cost of procurement, upgrades and administration was soaring. The closed box architecture of Teradata
imposed restrictions on scalability. Secondly, querying and loading could not happen simultaneously.
Queries could only be run during business hours because the loading of data had to take place during
off-business hours. This meant that the refresh rate of EDW was delayed, so queries may not reflect the
most current data. ICICI Bank was also dependent on Teradata for support and other activities: The
bank was completely tied down to that solution.

These issues compelled ICICI Bank to look for more efficient and flexible solutions. The solution
would have to address not only current issues, but accommodate future growth expectations and
business requirements. ICICI Bank evaluated numerous data warehousing solutions in the pursuit of
solving its issues, and developed a shortlist of alternatives for its migration proof-of-concept: Sybase,
SAS and Netezza. The primary criteria for evaluation was the price-to-performance ratio where Sybase
IQ emerged the clear winner. During this rigorous testing, Sybase IQ delivered faster results on
independent hardware and operating systems with minimum infrastructure. Commending the
improvements achieved, Amit Sethi, Joint General Manager, ICICI bank says, "What impressed us
wasthat even with overall lower costs, we could achieve significantly better query performanceafter
implementing the Sybase enterprise warehouse solution." ICICI InfoTech today launched an enterprise
resource planning (ERP) solution for the small and medium enterprises.

The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon server, Oracle
9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a 15-user license.

18
An ERP package helps a manufacturer or any other business implementing it to manage all the
important parts in the company such as product planning, parts purchasing, maintaining inventory and
interacting with suppliers and customers.

ICICI InfoTech officials told a press conference here today that Orion Advantage offered a set of
business practice solutions for industry segments such as engineering, auto ancillary, pharmaceuticals,
chemicals and IT distribution. Besides the cost advantage, the ERP package also came pre-configured.
ICICI InfoTech had mapped the processes specific to each industry segment into the package.

Mr. R.K. Kanthi, Deputy General Manager, ICICI InfoTech, said there was no ERP package for the
SMEs that bundled the server, database and operating system right now. That was the advantage ICICI
InfoTech offered to SMEs as Orion Advantage came bundled and pre-configured. Besides the high
cost of generic ERP packages, their implementation time as far as SMEs were concerned was also
long. Orion Advantage could be installed in 45 days.

ICICI InfoTech had signed up six customers so far for the package and hoped to garner a 15 per cent
market share of the SME segment, whose number in the country was estimated at 2.30 lakh.

The Chennai centers were involved in research and development of Orion ERP solutions and Premium,
an insurance package.

ERP Systems Integration

Pinnacle Software Solutions has the expertise and experience to assist you with your enterprise systems
integration. From developing your strategy, through implementation and support, we bring the right
combination of resources, management skill sets, and technical know-how. We will help you
successfully integrate your Enterprise Resource Planning (ERP) systems into your overall business
and technology infrastructure.

Whether you are planning an upgrade of an existing ERP system, or a complete replacement of a
legacy application and platform, we can help you improve your financial, human resources, electronic
mail, and other business systems. We work with the leading ERP systems, including the latest versions
of the Oracle and PeopleSoft applications:

General Ledger Project Costing

Human Resources

Accounts Receivable Payroll

19
 Benefits

Compensation

Our technology management solutions will help you migrate hardware platforms, improve network and
database performance, develop or refresh policies and procedures, and develop sound disaster recovery
and backup solutions. Please contact us to learn how Pinnacle Software Solutions can help you develop
“solutions that fit” your enterprise.

KEY SUBSIDIARIES

ICICI Prudential Life Insurance Company

ICICI Prudential life Insurance Company Limited was incorporated on 20th July 2000.The authorized
capital of the company is Rs.2300 million and the paid up capital is Rs.1500 million. The company is
joint venture of ICICI (74%) and UK based company Prudential Plc (26%). The company was granted
certificate of registration for carrying business, by Insurance Regulatory and Development Authority
on 24th November 2000. It commenced commercial operation from 19th December 2000 and becoming
a leading private sector life insurance company.

The company recognizes that the driving force for gaining sustainable competitive advantage in this
business is superior customer experience and investment behind the brand. The company aims to
achieve this by striving to provide world class service level trough constant innovation in product,
distribution channels and technology based delivery.

Vision and Mission

Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in the life
insurance industry. This they hope to achieve through their commitment to excellence, focus on
service, speed and innovation, and leveraging our technological expertise.

The success of the organization will be founded on its strong focus on values and clarity of purpose.
These include:

Understanding the needs of customers and offering them superior products and service
Building long lasting relationships with their partners
Providing an enabling environment to foster growth and learning for their employees

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And above all building transparency in all our dealings. They believe that they can play a significant
role in redefining and reshaping the sector. Given the quality of their parentage and the commitment of
their team, they feel that there will be no limits to their growth.

Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the
finance industry both from India and abroad.

Shri K.V. Kamath, Chairman

Management Team
Ms. Shikha Sharma, Managing Director
Mr. Kevin Wright, Executive Vice President - Sales & Distribution
Ms. Madhavi Soman, Chief - Strategic Initiatives
Mr. V. Rajagopalan, Appointed Actuary
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Saugata Gupta, Chief - Marketing & Service
Mr. Shubhro J. Mitra, Chief - Human Resources

ICICI Prudential Life Insurance Company (ICICI Life) maintained its market leadership in the private
sector with an overall market share of 9.3% based on retail new business weighted received premium
in fiscal 2010. ICICI Life’s total premium increased by 7.7% to Rs. 165.32 billion in fiscal 2010 with
renewal premiums increasing by 19.4%. ICICI Life’s new business annualized premium equivalent
was Rs. 53.45 billion in fiscal 2010. ICICI Life achieved its first year of accounting profits since
inception in fiscal 2010 with a profit after tax of Rs. 2.58 billion.

ICICI Life’s unaudited New Business Profit in fiscal 2010 was Rs. 10.15 billion. Life insurance
companies make accounting losses in initial years due to business set-up and customer acquisition
costs in the initial years and reserving for actuarial liability. Further, in India, amortization of
acquisition costs is not permitted. These factors resulted in statutory losses for ICICI Life since the
company’s inception till fiscal 2009. If properly priced, life insurance policies are profitable over the
life of the policy, but at the time of sale, there is a loss on account of non-amortized expenses and
commissions, generally termed as new business strain that emerges out of new business written during
the year. New Business Profit is an alternate measure of the underlying business profitability (as
opposed to the statutory profit or loss) and is the present value of the profits of the new business
written during the year. It is based on standard economic and non-economic assumptions including risk
discount rates, investment returns, mortality, expenses and persistency assumptions.

21
ICICI Lombard General Insurance Company

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank
Limited and Canada based Fairfax Financial Holdings Limited. ICICI Bank is India's second largest
bank, while Fairfax Financial Holdings is a diversified financial corporate engaged in
general insurance, reinsurance, insurance claims management and Investment management. Lombard
Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of Canada's oldest
property and casualty insurers. ICICI Lombard General Insurance Company received regulatory
approvals to commence general insurance business in August 2000.

PRODUCTS & SERVICES OFFERED BY ICICI BANK

ICICI Bank offers wide variety of Deposit Products to suit your requirements. Coupled with
convenience of networked branches/ ATMs and facility of E-channels like Internet and Mobile
Banking, ICICI Bank brings banking at your doorstep. Select any of its deposit products and provide
your details online and their representative will contact you for Account Opening.

SAVING ACCOUNTS

ICICI Bank offers customers a power packed Savings Account with a host of convenient features and
banking channels to transact through. So now customers can bank at their convenience, without the
stress of waiting in queues.

Special Savings Account:

The Special Savings Account has been designed keeping in mind the specific needs of organizations
such as Trusts, Associations, Societies, Councils, Clubs etc. It provides organizations solutions with
added value and is ideal for tax exempted entities.

“LIFE PLUS”Senior citizens savings account

LIFE PLUS, a special savings account for senior citizens from ICICI
Bank is packed with a host of benefits, designed keeping your unique
financial requirements in mind.

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  Special senior citizens desk to cater to all banking transactions, so that you don’t wait in
queues.
 Higher interest rate on FD/RD: avail the combined benefits of safety, flexibility and
attractive returns with ICICI Bank Fixed Deposit and Recurring Deposit.
 Free special senior citizen LIFE PLUS debit card.
 Money multiplies facility.
 Extended banking hours allows you to visit our branches, as per your convenience.
 Anywhere banking access to various services, ICICI Bank has to offer – anytime,
anywhere and from any place, including branches, ATMs and phone banking.
 Nomination facility available.
 Quarterly average balance (QAB) requirement of Rs.5000.
 Quarterly physical statements are delivered to your doorstep to absolutely free of cost.
 Passbook on request.

Young Stars Account:

Young Stars is a banking service for children, aged 1day -18

years, brought to you by ICICI Bank to help the parents meet the
present and future aspirations that they hold for their child. It
offers various savings and investment options to the parent along
with teaching the child to manage his/her personal finance in a more responsible and independent
manner. Young Stars will guide your child through the world of banking -through checking the account
balance, fun zones and special pages on the internet. It makes banking a pleasure and of course teaches
your child to manage their personal finances. With the pocket money that you transfer to your child's
account, you can even shop with him / her at Young Stars very own shopping page. You can even open
a recurring deposit in your child's name.

Once you are done with your 'banking', you can access your child's account with all the fun links to
special zones designed to suit your child's area of interests and also impart knowledge on the current
events of the world.

Advantage woman savings account

The ICICI Bank Advantage Woman Account enables today’s

independent women to enjoy hassle-free banking services. Besides the
core ICICI Bank advantage, the Advantage Woman Savings Account
is packed with special benefits for our women customers. Enjoy your
present and plan for the future with ICICI Bank’s Advantage Woman Savings Account. Advantage

23
Woman offers a specially designed woman's debit card which helps you shop and save simultaneously,
manages your household expenditures and comes with a bag full of offers attached to it.

 Special International Woman’s Debit Card with lots of offers.

 Free unlimited access to any bank’s ATM.
 Bill Pay facility & Multi Channel Access.
 Payable-at-par cheque book.
 Nomination facility available.
 Zero balance facility with an RD of Rs.2000 or Quarterly Average Balance (QAB) requirement
of Rs. 10,000.

Current Accounts:

Every business requires efficient banking facilities to support its business activities. ICICI Bank offers
premium quality service, unfolding a wide array of class products. With technology leadership and
service the bank is able to meet some of the most challenging financial needs of clients. A Current
Account is one that is required by Businessman, Joint stock companies, Institutions,
Public authorities, public corporations etc. Any business that has numerous banking
transactions need a current account as it

 Allows running account supporting unlimited withdrawals and deposits.

Is meant for convenience and not to save money.

Roaming Current Acc ount

Only Roaming Current Account from ICICI Bank travels the distance with customers business. With
advanced technological features such as MCC and LCC, banking needs are well taken care of;
customers can access their accounts at over 500 networked branches across the country.
So while customers take care of their business, ICICI Bank’s Roaming Current Account simplifies
banking for them.

Salary Accounts
Salary Account is a feature rich corporate payroll account with benefits for both corporate and its
employees.

 The process of drawing cheques for salaries is replaced by sending

a single ASCII file to the bank and the amount is directly credited
into the employee’s salary account

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  Cuts down payroll processing wor kload
 Salary Account can be opened with mini mum 10 employees
 Instant credit of sa lari es

ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Employees. As an
organization, you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy
numerous other benefits too. With ICICI Bank Salary Accounts your employees will enjoy the
convenience of :

• Having the largest network of ATMs at their command • .•

Free 24 hour Phone Banking

. All that the organization would require to do is to send ICICI Bank an advice (in form of a
cheque/debit instruction etc) for the total salary amount along with the salary details of the designated
employees in a soft and hard copy format and we will credit the respective employees' accounts as per
your statement of advice. ICICI Bank Salary Accounts benefits you in more than one ways:-

• Reduces paperwork.

• Saves remittance costs.

Employees receive instant credit of salaries. More convenient than ECS. Besides all of the above,
employees automatically become ICICI Bank account holders with special benefits and privileges of 8-
8 banking, Investment advisory and much more...

Fixed deposits:

Fixed deposits are options which help you grow your money thus
creating wealth in a safer and secure way.

ICICI provides its customers with various kinds of Fixed deposit

facilities that are flexible and cater to customers who have different
needs and wants in their fixed deposits.

ICICI provides a Fixed Deposit that allows customers to deposit their money for just as long as you
wish.

 Wide range of tenures – 15 days to 10 years.

 Choice of investment plan – traditional and cumulative deposits.

25
  Partial withdrawal allowed.
 Loan facility available – you can avail loan up to 90% of principal and accrued interest.
 Auto renewal facility – you can choose this option so that the deposit can be renewed on
maturity.
 Interest compounded quarterly.
 Additional interest rate of 0.5% for senior citizens.

Recurring Deposits:

ICICI Bank Recurring Deposits are an ideal way to invest small

amounts of money every month and end up with a large kitty on
maturity. High recurring billing and recurring payments can be
a drain on your finances and hence large investments may seem a
plan away.

Recurring deposits aims to encourage savings without putting any stress on customer’s finances by
making them to put a lump sum amount in fixed deposit in one go. The recurring deposit also attracts
high rate of return that are identical to the fixed deposit rates and most importantly no TDS is
applicable in it .the minimum balance of deposit is of Rs.500 and thereafter in multiples of Rs.100 the
minimum period is 6 months and thereafter in multiples of 3 months, nomination facility is also
available.

Security Deposits:

A few Corporates stipulate to their new employees to provide

Security Deposit to reduce attrition. ICICI Bank’s proposal for the
employee is to keep the Security Deposit in the form of a Fixed
Deposit (FD) with the Bank. The employee cannot withdraw such
FDs without the consent of the company and the company has the
right to withdraw the FD in the event of employee leaving the
organization before a certain stipulated period.

ICICI Bank Tax-Saver Fixed Deposit

ICICI Bank’s Tax-Saver Fixed Deposit enables you to save tax and earn high returns. A dual benefit
option structured to maximize your advantage. ICICI Bank’s Tax Saver FD is the perfect solution for
your investment needs.

26
EEFC Account
Indian exports have surged over the last decade owing to an unprecedented boom in sectors like
software, biotechnology, gems, Jewellery, textiles etc. As a result of this, the volume of inward
remittances has also increased significantly. To shield the firms engaged in regular export and import
from the exchange rate fluctuations RBI has allowed parking of foreign currency by exporters in an
account designated as Exchange Earners Foreign Currency Account (EEFC). EEFC accounts are
Current Accounts held in foreign currency with authorized dealers of foreign exchange in the country.

Resident Foreign Currency (Domestic) Account

Do you want to save money while buying foreign currency for travelling abroad? You can buy
traveler’s cheques, foreign currency in cash and foreign currency demand draft for your expenses
overseas. If you are a frequent traveler, you may not want to go through the hassles of buying foreign
currency every time you travel abroad.

The Reserve Bank of India has now made it easier for you to access foreign currency by permitting a
foreign currency account (domestic) for resident Indians. In line with RBI guidelines, ICICI Bank has
come up with a scheme that helps you get rid of all your Forex worries. You can park your foreign
currency in ICICI Bank under RFC (D) account. Non-interest bearing Resident Foreign Currency (D)
(RFC (D)) with ICICI Bank can be maintained in four major currencies (USD, EURO, GBP and
Japanese Yen)

PRIVILEGE BANKING:

Privilege banking service ensures preferential treatment to its customers.

Silver privilege A/c

 Waiver of multi-city cheque book usage up to Rs. 1,00,000 per month.

 Waiver of DD/PO charges for up to Rs.50,000 per day.
 Preferential rates of gold coins, deposits locker &foreign exchange.
 Quarterly average balance requirement of Rs.25000.

Gold privilege A/c

 Priority processing at all ICICI Bank branches and customer care.

27
 Free usage of payable -at-par cheque book.
 Free international gold debit card with higher daily withdrawal and spend limit.
 Waiver of DD/PO charges for up to Rs.100,000 per day.
 Free anywhere banking facility.
 Preferential rates for gold coins, deposit lockers and foreign exchange.
 Quarterly Average Balance (QAB) requirement of Rs.50000.

Titanium privilege A/c

 Branch relationship manager supported with phone banking relationship manager.

 Priority processing at ICICI Bank branches and customer care.
 Free international titanium debit card with higher daily withdrawal and spend limit.
 Free anywhere banking facility.
 Free usage of multi-city cheque book.
 Free physical monthly account statement.
 Complete waiver on DD/PO charges.
 Preferential rates for gold coins, deposit lockers and foreign exchange.
 Quarterly average balance (QAB) requirement of Rs.75000 and Total Relationship
Value (TRV)of Rs. 5,00,000.

Superior product benefits of privilege banking, wealth management and global private client (GPC)
available to all the members of your family while the required minimum balance can be maintained in
any of the accounts.

 Access to superior benefits for the entire family.

 Flexibility to maintain balances across account.
 Lower minimum balance requirement at individual customer level.
 Single family bank – convenience for the entire family and easier funds management.

Outward Remittance:

Send money to your loved ones abroad

ICICI Bank offers you a simple way to send money outside India. Our Outward Remittance facilities
make remitting money abroad quick, and reliable. ICICI Bank’s Outward Remittance is the solution for
your all your needs. Be it money for education, gift money or maintenance for loved ones or donation
for a cause. Our extensive network gives us reach to most parts of the world.

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Advantage Deposit

Advantage Deposit is a combination of fixed deposit and mutual fund investment, offering you the
safety of a fixed deposit and the returns of an equity fund. Advantage Deposit counters equity-market
fluctuations through Systematic Investment Plans.

Combination of a Fixed Deposit (with monthly interest payout) and Systematic Investment
Plan (SIP) of a Mutual Fund.
Re-investment of monthly interest payout of Fixed Deposit into systematic investment plan of
Mutual Fund.
Automatic debits to account through Standing Instruction / ECS debit mandate.

New Pension System of Government of India

ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION SYSTEM launched
on May 1, 2009 by the Government of India. The scheme, promoted by the PFRDA (Pension Fund
Regulatory and Development Authority, Government of India), is a first of its kind in India and is
being launched pan-India by 22 other POP's as well.

The purpose of this pension scheme is to promote security of income to its subscribers in their old age.
The scheme will empower a subscriber to plan his own retirement and pension. It not only will help
him save for life after retirement but also is a good investment tool as the returns are market-driven.
For optimum returns, the Government has appointed six fund managers for subscribers to choose from.

Various Loans offered by ICICI Bank

 Range of services on existing loans & extended products like funding of new vehicles,
refinance on used vehicles, balance transfer on high cost loans, top up on existing loans,
Extend product, working capital loans & other banking products..
 Preferred financier status with most of the leading manufacturers.
 Simple documentation.
 Quick turnaround time.
 Flexible financing solutions to meet the individual requirement.

"Zoom away in your favourite two wheeler. ICICI provides attractive schemes at competitive interest
rates.

29
  Finance facility available for all two wheelers ranging from mopeds to motor bikes.
 Now avail Finance upto 90%* of the On Road Cost of the vehicle, repayable in convenient
tenure options ranging from 6 months to 36 months*.
 Ride Easy Pay Easy with ICICI Bank Two Wheeler Loans.
 In an unlikely case of your not meeting our norms NO PROBLEM - you can still avail our
loan, any blood relative can be your co-applicant.
 Existing ICICI Bank Customers ride away on your favourite Two Wheeler by availing Loan
On Phone*-- a facility to get an instant loan over the phone!! Apply for loan online, call or
through sms.

 ICICI is the preferred financier for almost all leading tractor manufacturers in the country.
 ICICI finances farm equipments in over 381 locations spread across the country.
 Provides fast processing of files with easy documentation.
 Flexible repayment options in tandem with the farmer's seasonal liquidity.
 Monthly, Quarterly and Half-yearly repayment patterns to choose from. Comfortable
repayment tenures from 1 year to 6 years.

Having funded infrastructure for over 4 decades, ICICI understands the need of the customers better.
ICICI Bank offers attractive financial packages through their excellent distribution network. The
products are customized for new entrepreneur to large business houses. ICICI has tie-up with leading
construction equipment manufacturers for wide range of products. The Bank take over existing high
cost loans at competitive terms resulting in huge savings and is quick in processing due to easy
formalities and one time sanction of loans for disbursement over a period of time.

Loans against Securities enables customers to obtain loans against their securities. So they get instant
liquidity without having to sell their securities.

All customers have to do is pledge your securities in favors of ICICI Bank The Bank will then grant
them an overdraft facility upto a value determined on the basis of the securities pledged by them. A
current account will be opened and customer can withdraw money as and when they require. Interest
will be charged only on the amount withdrawn and for the time span utilised.

Disbursements gifting & small ticket transactions. Pre-paid cards are available on a VISA platform
thus providing accessibility to over one lakh merchant establishments & cash withdrawal from all
VISA ATMs in India.

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 REVIEW OF LITERATURE

The financial analysis of banking institutions, particularly large private sector banks like ICICI
Bank, is an essential area of study for understanding the dynamics of the Indian financial
system. Over the years, numerous studies have examined the performance, challenges, and
growth strategies of ICICI Bank, contributing valuable insights into the banking sector.

1. Financial Performance of ICICI Bank: Studies have frequently explored the

financial performance of ICICI Bank through various financial ratios and metrics. For
instance, the return on equity (ROE), return on assets (ROA), and net interest margin
(NIM) have been used to assess profitability, operational efficiency, and overall
financial health (Bhattacharya, 2014). Analyzing the financial statements of ICICI
Bank, including its balance sheet, income statement, and cash flow statement, provides
valuable insights into how the bank manages its assets, liabilities, and capital.

2. Risk Management Practices in ICICI Bank: Several papers have explored ICICI
Bank's risk management practices, especially in light of the global financial crisis of
2008 and its aftermath. Risk management in banking is crucial for safeguarding
profitability and long-term stability. ICICI Bank, like other financial institutions, is
subject to various types of risks such as credit risk, market risk, liquidity risk, and
operational risk (Sahu & Mishra, 2017). Studies have assessed how the bank mitigates
these risks using strategies such as diversification of its loan portfolio, maintaining
adequate capital reserves, and implementing robust credit evaluation mechanisms.

3. Impact of Technological Advancements on ICICI Bank: The role of technology in

transforming banking operations has been widely discussed in the literature. ICICI
Bank has been a pioneer in adopting digital banking services and has invested
significantly in technology to enhance customer experience and operational efficiency
(Kumari & Garg, 2019). Research has shown that the integration of internet banking,
mobile banking, and artificial intelligence has not only improved the bank's cost
structure but also provided a competitive edge in a highly digitized financial
ecosystem.

4. Market Positioning and Competitive Advantage of ICICI Bank: Competitive

strategy is another crucial aspect that has been analyzed in relation to ICICI Bank. The
bank's market positioning and competitive advantage in the Indian banking sector have

31
 been examined through its pricing strategies, service offerings, and customer base.
Studies have highlighted ICICI Bank’s innovative financial products, its leadership in
retail banking, and its ability to expand into international markets, particularly in Asia,
as key drivers of its competitive edge (Ravindra & Raju, 2018).

5. Capital Adequacy and Regulatory Compliance: The financial stability and

sustainability of ICICI Bank have been analyzed in the context of regulatory
frameworks and capital adequacy norms established by the Reserve Bank of India
(RBI) and international bodies like the Basel Committee. The bank’s adherence to the
capital adequacy ratio (CAR) and other regulatory requirements has been a focal point
of many studies (Sharma & Goel, 2015). These regulations ensure that ICICI Bank
maintains enough capital to absorb potential losses and protect depositors.

6. Social Responsibility and Corporate Governance: Another key area of review in the
literature concerns ICICI Bank’s corporate governance practices and its social
responsibility initiatives. Research has shown that the bank maintains high governance
standards, ensuring transparency and accountability in its operations. The role of
corporate social responsibility (CSR) in enhancing the bank's brand image and
supporting community development has also been highlighted (Gupta & Gupta, 2020).
Studies have explored how ICICI Bank’s CSR initiatives, such as financial literacy
programs and environmental sustainability projects, contribute to its long-term success.

7. Challenges and Future Prospects: While ICICI Bank has witnessed significant
growth, challenges such as increasing non-performing assets (NPAs), intense
competition from both public and private banks, and changing customer preferences
have also been addressed in the literature. Researchers have discussed strategies the
bank might adopt to tackle these challenges, including cost-cutting measures,
innovative product offerings, and better customer relationship management (Singh &
Arora, 2016).

8. Global Expansion and Strategic Alliances: ICICI Bank's expansion into international
markets has also been an area of significant academic interest. The bank’s international
branches and acquisitions, including those in the UK, Canada, and the US, have been
studied to understand how global diversification contributes to risk reduction and
revenue generation (Bhat & Iyer, 2014).

32
 RESEARCH METHODOLOGY

STATEMENT OF THE PROBLEM

In the recent years the financial system especially the banks have undergone numerous

changes in the form of reforms, regulations & norms. CAMEL framework for the performance

evaluation of banks is an addition to this. The study is conducted to analyze the pros & cons of

this model.

RESEARCH PROPOSAL

The Bank after the implementation of the balanced scorecard in 2002 has under gone a drastic

change. Both its peoples and process perspectives have changed visibly and the employees

have full faith in the new strategy to produce quick results and keep them ahead in the

industry. The balanced scorecard approach has brought about more role clarity in the job

profile and has improved processes. In short it focuses not only on short term goals but is very

clear about its way to achieve the long term goal.

Type of research:

Descriptive Research is used for the study of the performance of private banks on CAMEL

RATING in India.

Data collection:

Secondary data on the subject was collected from the Books, ICFAI journals, company

prospectus, company annual reports and IMF, RBI & SEBI websites.

SAMPLING TECHNIQUE :

Non Probability sampling (judgment sampling) was done for the whole study and selection of

Data.

33
 DATA ANALYSIS

Capital Structure

(Rs. in crores)

From the table above we can interpret that ICICI Bank share capital has increased from
1113.25 crore to 1114.85 crore in 2008-09 to 2009-10 respectively.

OPERTATING RESULT DATA

34
INTERPRETATION OF P/L A/C

1. Profit before provisions and tax increased by 9.0% from Rs. 89.25 billion in fiscal
2009 to Rs. 97.32 billion in fiscal 2010, this is because due to increase in non lending
activities.

2. Provisions and contingencies (excluding provision for tax) increased by 15.2% from
Rs. 38.08 billion in fiscal 2009 to Rs. 43.87 billion in fiscal 2010 due to a higher level
of specific provisioning on non-performing retail loans and restructured corporate
loans.
Profit before tax increased by 4.5% from Rs. 51.17 billion in fiscal 2009 to Rs. 53.45
billion in fiscal 2010.

3. Profit after tax increased by 7.1% from Rs. 37.58 billion in fiscal 2009 to Rs. 40.25
billion in fiscal 2010.

4. Net interest income decreased by 3.0% from Rs. 83.67 billion in fiscal 2009 to Rs.
81.14 billion in fiscal 2010, primarily may be due to a decrease in average interest-
earning assets.

5. Non-interest income decreased by 1.6% from Rs. 76.03 billion in fiscal 2009 to Rs.
74.78 billion in fiscal 2010, may be due to a decrease in fee income.

6. Non-interest expense decreased by 16.8% from Rs. 70.45 billion in fiscal 2009 to Rs.
58.60 billion in fiscal 2010, due to a decrease in direct marketing agency expenses
from Rs. 5.29 billion in fiscal 2009 to Rs. 1.25 billion in fiscal 2010 and a reduction in
salary and other operating expenses from Rs. 65.16 billion in fiscal 2009 to Rs. 57.35
billion in fiscal 2010 on account of overall cost reduction initiatives undertaken by the
bank.

7. Other administrative expenses decreased by 17.5% from Rs. 38.64 billion in fiscal
2009 to Rs. 31.87 billion in fiscal 2010 due to overall cost reduction initiatives
undertaken by the bank. There was a reduction in expenses on account of printing and
stationery, advertisement and publicity and postage and communication expenses in
fiscal 2010 as compared to fiscal 2009.

8. They use marketing agents, called direct marketing agents or associates, for sourcing
retail assets. They include commissions paid to these direct marketing agents of their
retail assets in non-interest expense. Due to lower retail disbursements and lower
issuance of new credit cards, direct marketing agency expenses decreased by 76.4%
from Rs. 5.29 billion in fiscal 2009 to Rs. 1.25 billion in fiscal 2010.

35
9. The depreciation of company has reduced from 2.10 billion in 2009 to 1.42 billion in
2010. The percentage change in depreciation is (32.4%).

FINANCIAL CONDITION ( BALANCE SHEET)

36
 INTERPRETATION OF BALANCE SHEET

1. The total asset has decreased by 4.2% from Rs. 3,793.01 billion at year-end fiscal 2009
to Rs. 3,634.00 billion at year-end fiscal 2010.
2. Net advances decreased by 17.0% from Rs. 2,183.11 billion at year-end fiscal 2009 to
Rs. 1,812.06 billion at year-end fiscal 2010.
3. Total investments increased by 17.3% from Rs. 1,030.58 billion at year-end fiscal
2009 to Rs. 1,208.93 billion at year-end fiscal 2010 primarily due to an increase in
non-SLR investments by Rs. 128.18 billion and investments in government and other
approved securities by Rs. 50.17 billion.

4. Equity share capital and reserves increased from Rs. 495.33 billion at year-end fiscal
2009 to Rs. 516.18 billion at year-end fiscal 2010 primarily due to annual increase to
reserves out of profits.

5. Total deposits decreased by 7.5% from Rs. 2,183.48 billion at year-end fiscal 2009 to
Rs. 2,020.17 billion at year-end fiscal 2010 may be due to their strategy.
Term deposits decreased from Rs. 1,556.80 billion at year-end fiscal 2009 to Rs.
1,178.01 billion at year-end fiscal 2010. Savings account deposits increased from
Rs.410.36 billion at year-end fiscal 2009 to Rs. 532.18 billion at year-end fiscal 2010
and current account deposits increased from Rs. 216.32 billion at year-end fiscal 2009
to Rs. 309.98 billion at year-end fiscal 2010.

6. Borrowings increased from Rs. 931.55 billion at year-end fiscal 2009 to Rs. 942.64
billion at year-end fiscal 2010 may be due to on account of new capital-eligible
borrowings.
7. Other liabilities and provisions have decreased by 64.57 %.

37
I) Capital Adequacy

Capital adequacy reflects the overall financial position of a bank and also the ability of the
management to meet the need for additional capital requirement.

A) Capital Adequacy Ratio (CAR)

CAR reflects the ability of a bank to deal with probable loan defaults. The RBI guidelines
stipulate banks to maintain a CAR of minimum 9%. It is arrived at by dividing the Tier I and
Tier II capital by risk-weighted assets. Tier I capital includes equity capital and free reserves.
Tier II capital comprises subordinated debt of 5-7 year tenure. The stronger will be the bank if
the CAR is higher.

TIER 1 CAPITAL -A) Equity Capital, B) Disclosed Reserves

TIER 2 CAPITAL -A) Undisclosed Reserves, B)General Loss reserves, C)Subordinate Term
Debts
Where Risk can either be weighted assets ( ) or the respective national regulator's minimum
total capital requirement

B) Debt-Equity Ratio (D/E)

Debt-Equity Ratio is arrived at by dividing the total borrowings and deposits by shareholders’
net worth, which includes equity capital and reserves and surpluses.
The Debt to Equity ratio is used for measuring solvency, and researching the capital structure
of the company. It indicates how much the company is leveraged (in debt) by comparing what
is owed to what is owned. In other words it measures the company’s ability to borrow and
repay money.
The debt to equity ratio is closely watched by creditors and investors, because it reveals the
extent to which company management is willing to fund its operations with debt, rather than
equity.

38
C) Advances to Assets (ADV/AST)
This is the ratio of the Total Advances to Total Assets. Total Advances also include
receivables. The value of Total Assets excludes the revaluations of all the assets.

Interpretation:
BANK
NAME Capital Adequacy (2010) Capital Adequacy (2009)
Capital Debt- Advances to Capital Debt- Advances
Adequacy Equity Asset Ratio Adequacy Equity to Asset
Ratio (%) Ratio (%) Ratio (%) Ratio Ratio (%)
SBI 13.39 1.51 60 12.97 1.45 56.52
ICICI
Bank 19.14 1.85 62 15.92 1,86 57.47

Capital Adequacy Ratio: As we can see from the table above, SBI’s CAR is increased from
12.97% in 2009 to 13.39% in 2010 which seems to be good but ICICI Bank’s CAR has
increased from 15.92% in 2009 to 19.14% in 2010, which is far better than SBI. The
minimum CAR which banks have to maintain is 9% as per RBI’s Guidelines. Both the banks
have maintained CAR above 9%. ICICI Bank has better ability to deal with probable loan
defaults. Hence ICICI is better as far as CAR is concerned.

Debt-Equity Ratio: The Debt-Equity ratio of SBI is 1.45 in 2009 as compared to 1.51 in 2010
while ICICI Bank has 1.86 in 2009 as compared to 1.85 in 2010. The debt-equity ratio should
be as low as possible. Here we can say that the borrowings of the SBI are less than their
deposits are concerned, which is a good sign. We can interpret from the ratio that the SBI is
better than ICICI Bank mainly in terms of debt-equity ratio because of lower borrowings and
high deposits.

Advances to Asset Ratio: An advance to Assets ratio is reflects a bank’s positions and risk
taking ability in lending funds. A higher Advances/Asset ratio shows that the bank is
aggressively lending fund and vice versa. A general perception has been that private sector
banks are more aggressive lenders as compared to their public sector counterparts. In the table
above, we can say that the SBI’s Advances to Asset Ratio has increased from 56.52% in 2009
to 60% in 2010 while ICICI Bank’s Ratio has increased from 57.47% to 62%. It is clear that
ICICI Bank has high risk taking ability, Hence ICICI Bank is better in Advances to Asset
Ratio as far is SBI is concerned.

II) Asset Quality

The asset quality is to ascertain the proportion of non-performing assets as a percentage of the
total assets .It also ascertains the NPA movement and the amount locked up in investments as
a percentage of the total assets.

39
How to calculate NPAs:
Gross NPA – (Balance in Interest Suspense account + DICGC/ECGC claims received and
held pending adjustment + Part payment received and kept in suspense account + Total
provisions held).

A. Net NPAs to Total Assets (NNPAs/TA)

It is a measure of the quality of assets in a situation where the management has not
provided for loss on
NPAs.
B. Net NPAs to Net Advances (NNPAs/NA)
Net NPAs are Gross NPAs net of provisions on NPAs and suspense account.
C. Percentage change in Net NPAs
This measure gives the movement in Net NPAs in relation to Net NPAs in the previous
year. The higher the reduction in Net NPA levels, the better it is for the bank.

Interpretation:
BANK
NAME Asset Quality (2010) Asset Quality (2009)
Net NPAs Percentage Net NPAs Percentage
to Net change in Net NPAs to Net change in
Net NPAs to Advances Net NPAs to Total Advances Net NPAs
Total Assets (%) (%) Assets (%) (%)
SBI 1.72 1.72 13.8 0.99 1.76 28.66
ICICI
Bank 0.1 2.12 15.65 1.2 2.09 30.46

Asset Quality: An NPA (Non Performing Assets) is an asset, including a leased asset,
becomes non-performing when it ceases to generate income from the bank. The Net NPAs to
Total Assets ratio indicates us how much Non Performing Assets the bank has to their Total
Assets in balance sheet. It is believed that lower the better for the banks in the case of Asset
Quality Ratios.

The Net NPAs to Total Assets of SBI has increased from 0.99 to 1.72 in 2009 and 2010
respectively which is not a good indication for the bank while ICICI Bank has successfully
reduced its Net NPAs to Total Assets from 1.2 to 0.1 in 2009 and 2010 respectively.

The Net NPAs to Net Advances Ratio indicates how much Non-performing assets the bank
has to their Total Advances. The Net NPAs to Net Advances (%) is reduced from 1.76% to

40
1.72% for SBI while the Net NPAs to Net Advances (%) for ICICI Bank has increased a bit
from 2.09 to 2.12 in 2009 and 2010 respectively. Here SBI is better than ICICI Bank in
maintaining their NPAs to Net Advances (%) are concerned. Here the ICICI Bank ratio has
increased mainly either because of higher NPAs or lower Net Advances as compared to their
previous year.

The Third Ratio i.e. Percentage change in Net NPAs for SBI is 13.8% in year 2009-10 while
the Percentage change in Net NPAs for ICICI Bank is 15.65%. Here it indicates that SBI has
increased its NPAs by 13.8% from the previous year while ICICI Bank has increased its NPAs
by 15.65% from the previous year. Hence we can say SBI is better than ICICI Bank as far as
controlling of Increase in NPAs on a yearly basis.

III) Management Efficiency

Refers to the efficiency of the Management in managing the bank, in all the ratios higher the
better:
A Total Advances to Total Deposits (TA/TD)
This ratio measures the efficiency of the management in converting the deposits available with
the bank (excluding other funds like equity capital, etc.) into advances.

B Profit per Employee (PPE)

This measures the efficiency of the employee. It is arrived at by dividing the net profit of the
bank by total number of employees. Higher the ratio means higher the efficiency of the
management.

C Return on Net Worth (RoNW)

It is a measure of the profitability of a bank.
The amount of net income returned as a percentage of shareholders equity. Return on
equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested.
ROE is expressed as a percentage and calculated as:
Return on Equity = Net Income/Shareholder’s Equity
Net income is for the full fiscal year (before dividends paid to common stock holders but after
dividends to preferred stock). Shareholder’s equity does not include preferred shares.
It is also known as “Return on net worth” (RONW).

41
Interpretation:

BANK
NAME Management Efficiency (2010) Management Efficiency (2009)
Total Total
Advances to Profit Per Advances Profit Per
Total Employee Return on to Total Employee Return on
Deposits (Rs.in Net Worth Deposits (Rs.in Net Worth
(%) Crore) (%) (%) Crore) (%)
SBI 78.58 0.02 15.45 73.1 0.02 15.74
ICICI
Bank 89.7 0.11 7.79 99.98 0.11 6.97

From the table above, we can say that ICICI Bank is better able to convert its Advances to
Deposits while SBI Bank has not done really well in this ratio from 2009 to 2010. But ICICI
Bank is having an edge over SBI in this ratio. The Ratio of Total Advances to Total Deposits
(%) has increased by 73.1% in 2009 to 78.58% in 2010 for SBI while ICICI Bank’s Total
Advances to Total Deposits was 99.98% in 2009 which is reduced to 89.7% in 2010.

Profit per employee of SBI is far lower than ICICI Bank mainly because of huge no. of
employees in SBI as compared to ICICI Bank. The profit per employee of SBI is 0.02 in 2009
as well as in 2010 but the profit for employee of ICICI Bank is 0.11 in both the years.

Return on net worth is definitely higher by good margin of SBI, but the SBI’s return on Net
worth is reduced a bit from 15.74% in 2009 to 15.45% in 2010 while the ICICI Bank has
increased its Return on Net worth from 6.97% in 2009 to 7.79% in 2010.

On the whole we can say that except for profit per employee (because of Huge No. of
Branches & Employees for SBI) SBI tops in the management efficiency from ICICI Bank.
IV) Earnings Efficiency:
Much of a bank’s income is earned through non-core activities like investments, treasury
operations, and corporate advisory services and so on.

A Percentage Growth in Net Profit

It is the percentage change in net profit over the previous year.

B Net Interest Margin (NIM)

42
 Net Interest Margin (NIM) is defined as the difference between interest earned and interest
expended as a proportion of average total assets.
Interest income includes dividend income. Interest expended includes interest paid on
deposits, loans from RBI, and other short-term and long-term loans.

C Non-interest Income/Working Funds (NII/WF)

This measures the income from operations other than lending as a percentage of working
funds.
Working funds: These are total resources (total liabilities or total assets) of a bank as on a
particular date. Total resources include capital, reserves and surplus, deposits, borrowings,
other liabilities and provision. A high AWF (Avg. Working Fund) shows a bank’s total
resources strength. There is a school of theory which maintains that working funds are equal
to aggregate deposits plus borrowing. However, more pragmatic view in consonance with
capital adequacy calculations is, to include all resources and not just deposits and borrowings.

Interpretation:
BANK
NAM
E Earnings Efficiency (2010) Earnings Efficiency (2009)
Percentage Net Percentage Net Non Interest
Growth in Interest Non Interest Growth in Interest Income/Wor
Net Profit Margin Income/Workin Net Profit Margin king Fund
(%) (%) g Fund (%) (%) (%) (%)
SBI 49 2.33 1.43 35.55 2.93 1.45
ICICI
Bank 1.08 1.93 2.09 -15.91 2.66 1.98

A bank’s earnings quality reflects its profitability and sustainability of the same. From the
table above, we can directly say that the Earning Efficiency of SBI has increased while the
earning efficiency of ICICI Bank came to positive from negative year earlier. The Percentage
growth in Net Profit of SBI has increased from 35.55% in 2009 to 49% 2010. While ICICI
Bank’s profitability which was negative (-15.91%) in 2009 has performed bit better to 1.08%
this year i.e. 2010. We can say that SBI Bank for the year 2010 is better from ICICI Bank.

Net Interest Margin (NIM) is basically Interest Earned minus Interest Expended on the
proportion of Total Assets. The NIM (%) of both the companies has reduced from 2009 to
2010. The NIM (%) of SBI is reduced from 2.93% in 2009 to 1.43% in 2010 while ICICI

43
Bank’s NIL (%) is reduced from 2.66% in 2009 to 1.93% in 2010. It is clear that the interest
earned by these banks is reduced or we can say the interest expended on deposits and
borrowings has increased due to this the NIM (%) has reduced.

The non interest income is the income which is earned by the bank other than lending (core)
activity. The Non interest income/working fund (%) ratio measures the income from
operations other than lending as a percentage of working funds. From the table above, we can
interpret that SBI’s Non Interest Income/Working Fund (%) is reduced from 1.45% in 2009 to
1.43% in 2010 while ICICI Bank’s Non Interest Income/Working Fund (%) is increased from
1.98% in 2009 to 2.09% in 2010. This is mainly because ICICI is concentrating also on
Merchant Banking, Investment Banking, Private Equity, and Underwriter more than the SBI.

On the whole SBI is a clear winner as far as Non Interest Income/Working Fund (%) is
concerned.

V) Liquidity:

A Liquid Assets/Demand Deposits (LA/DD)

This account allows you to "demand" your money at any time, unlike a term deposit, which
cannot be accessed for a predetermined period (the loan's term).

This ratio measures the ability of a bank to meet the demand from demand deposits in a
particular year. Higher ratio is better for banks. A demand deposit or bank money refers to
the funds held in demand deposit accounts in commercial banks. These account balances are
usually considered money and form the greater part of the money supply of a country.

B Liquid Assets/Total Assets (LA/TA)

Liquid Assets include cash in hand, balance with RBI, balance with other banks (both in India
and abroad), and money at call and short notice. The ratio is arrived by dividing liquid assets
by total assets. Higher the ratio better it is.

C G-secs/Total Assets (G-Sec/TA)

This ratio measures the proportion of risk-free liquid assets invested in G-Secs as a percentage
of the assets held by a bank and is arrived at by dividing liquid assets by total assets. Higher
ratio indicates well for the bank.

44
 BANK
NAME Liquidity (2010) Liquidity (2009)
Liquid Liquid G-
Assets/De Liquid G- Liquid Assets/T Secs/To
mand Assets/To Secs/Tot Assets/Dema otal tal
Deposits tal Assets al Assets nd Deposits Assets Assets
(%) (%) (%) (%) (%) (%)
SBI 78 9 22 94.27 10.82 23.46
ICICI
Bank 125 11 19 138.53 13.55 16.71

Liquidity is the ability of the bank to meet its financial obligations. A high liquidity ratio
indicates a bank’s comfort level vis-à-vis its ability to manage its obligations, both short-term
as well as long-term. Liquidity of a bank can be measured using metrics such as Liquid
Assets (LA) to Total Deposits (TD) and LA to Total Assets (TA), G-Sec to Total Assets, etc.

In Demand Deposit basically the customer can withdraw the money without any prior notice
to depository, it is exactly opposite of term deposit where customer has to give proper notice,
and follow the procedure to break the term deposit. We can see from the table that the liquid
assets to demand deposits (%) of SBI have reduced from 94.27% to 78% in 2009 and 2010
respectively. The thing is same with ICICI Bank where the liquid assets to demand deposits
(%) are reduced from 138.53% to 125% 2009 and 2010 respectively. We can say ICICI Bank
is able to maintain its liquid assets are to demand deposits in greater percentage than SBI.

ICICI Bank has maintained higher Liquid Assets to Total Assets (%) than SBI. But as we can
see from the table that both the companies ratio is decreasing from year 2009 to 2010. SBI has
reduced the figure from 10.82% in 2009 to 9% in 2010 while ICICI Bank has reduced this
figure from 13.55% to 11%. Here ICICI Bank has an edge over SBI as higher the better.

The liquid assets kept by ICICI Bank is more as compared from the last year, it seems that
ICICI Bank is more conservative than SBI from year 2009 to 2010. SBI has reduced the fund
kept in G-Secs from 2009 to 2010 while ICICI Bank has increased the fund in risk free assets.
This show ICICI Bank is conservative. Still SBI has maintained an edge over ICIC Bank as far
as this ratio is concerned.

45
 CONCLUSION

ICICI Bank Ltd, India’s largest private sector Bank and Vodafone Essar Ltd, one of
the largest Mobile Network Operators in India, today announced a joint
initiative to drive financial inclusion in the country. Under this tie-up, both entities will offer a
bouquet of financial products such as savings accounts, pre-paid instruments and credit
products through a mobile phone based platform.
This partnership is expected to bring the un-banked and under-banked population
into the organized financial services framework and assist in furthering the electronic
payments market in India. ICICI Bank will leverage the distribution strength of Vodafone,
which manages over 1.5 million retail points for acquiring customers and servicing them.
The Reserve Bank of India (RBI) has over the past few years come out with various
measures to facilitate banks to achieve the financial inclusion agenda. RBI has allowed banks
to appoint for-profit' companies as Business Correspondents (BCs). This tie-up between ICICI
Bank and Vodafone is a step in that direction.
The Indian government has been actively pursuing the agenda for inclusive growth to ensure
that benefits of the exponential growth phase reach all the sections of the
Society. To this effect, financial inclusion has been an important goal that aims to
provide access to basic financial services to each and every individual across the
country. Such access is essential to initiate growth in the hitherto un-banked sections of the
society, eventually resulting in improvement in the per capita household income and the Gross
Domestic Product (GDP) of the country.
Speaking on the alliance, Ms. Chanda Kochhar, Managing Director & CEO, ICICI Bank Ltd
said, “We are very excited about the partnership with Vodafone, which will help ICICI Bank
in deepening its base within the country. Mobile penetration is growing exponentially in the
country of which the rural market forms a major contributor.There is a huge potential for
offering mobile banking in these regions, which will facilitate access to the financially
excluded parts of the society and ensure that benefits from various welfare and growth
programs of the government reach them along with other financial services and products.
Vodafone, with its innovative and customer focus initiatives, is an ideal partner who will help
in furthering the cause of financial inclusion in India”.

46
 BIBLIOGRAPHY
Research Papers

a. Mrs. Svetlana Tatuskar, Asst. Prof. Finance - “Evaluating the Efficiency and
Performance of Indian Banks post recession”
Websites

a. http://www.moneycontrol.com/stocks/marketinfo/marketcap.php?optex=BSE&ind
code=Banks%20-%20Private%20Sector
b. http://www.moneycontrol.com/stocks/marketinfo/marketcap.php?optex=BSE&ind
code=Banks%20-%20Public%20Sector
c. http://www.aceanalyzer.com/
d. “Nationalization” - http://en.wikipedia.org/wiki/Banking_in_India
e. http://business.mapsofindia.com/india-industry/banking.html

Articles

a. Source: Indian Banking System - The Current State & Road Ahead. Annual
Survey February 2010 – By FICCI (FEDERATION OF INDIAN CHAMBERS
OF COMMERCE & INDUSTRY)
b. “Banking Industry in India” (Source:
http://en.wikipedia.org/wiki/Banking_in_India)
c. “Some insights about banking industry” Source:
http://business.mapsofindia.com/india-industry/banking.html
d. “News Article 1” -
http://www.icicibank.com/aboutus/pdf/ICICI_IntuitFinal_March2011.pdf
e. “News Article 2” -
http://www.icicibank.com/aboutus/pdf/ICICIBank_Vodafone_Jan2011.pdf
f. “Annual Reports” - http://www.icicibank.com/aboutus/annual.html

47