Group Leader: Padmavati UdechaGROUP Members:

Aakansha.S.Shah-WRO0523706Padmavati Udecha-WRO0518055

CENTRE- RVG AndheriBatch timings and

commencement date-12.30p.m. to 4.30p.m.

18th May 2015

FINANCIAL STATEMENT ANALYSIS OF

Reasons for selecting the topicAs a CA student it is important to have the

knowledge of financial statements.It is also very important to know how can it be

analyzed.This helps us to know whether it would be

beneficial to make investment in a certain company or not.

It will help us as a CA to advise our clients, too.Since ICICI bank is one of the largest Banks in

India, we decided to choose it for our project.

Financial Statement Analysis - Meaning

A financial statement analysis consists of the application of analytical tools and techniques to the data in financial statements in order to derive from them measurements and relationships that are significant and useful for decision making.

Uses of Financial Statement Analysis

Preliminary screening toolForecasting tool Used in evaluation and diagnosis of managerial, operating or other problem areas.

Sources of Financial Information

Annual Report of the companyRequired disclosures

Tools of financial analysis

Ratio AnalysisTrend Analysis

ICICI Bank an introduction…Rs.6,461 billion AssetsRs. 111.75 billion Profit After TaxOver 52million Customers4,050 BranchesICICI Bank is India’s largest private sector

bank.Its subsidiaries include India’s leading private

sector insurance companies and among India’s largest securities brokerage, asset management and private equity companies. The Bank’s presence spans 17 countries, including India.

Balance Sheet of ICICI Bank ---------Rs. In cr.---------

Profit and Loss A/c of ICICI Bank ---------Rs. In cr.---------

RATIO ANALYSIS

Capital Adequacy RatioCapital Adequacy Ratio (CAR) is the ratio of a bank's capital in relation to its risk weighted assets and current liabilities. It is decided by central banks and bank regulators to prevent commercial banks from taking excess leverage and becoming insolvent in the process. 

Mar'15 Mar'14 Mar'13 Mar'12 Mar'1115.5

16

16.5

17

17.5

18

18.5

19

19.5

20CAR

CAR

NPAsAn asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank.Generally, the cut-off period for an asset to become a non performing asset is 90 days.

NPA ratio = Net non-performing assets / Loans given

Mar'15 Mar'14 Mar'13 Mar'12 Mar'110

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8Net NPA %

Net NPA %

Debt to Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets.

Mar'15 Mar'14 Mar'13 Mar'12 Mar'113.8

3.9

4

4.1

4.2

4.3

4.4

4.5

4.6Debt to equity Ratio

Debt to equity Ratio

Net Profit Margins

Net Profit Margin Ratio=Net Profit/Revenue * 100

Mar'15 Mar'14 Mar'13 Mar'12 Mar'1114.5

15

15.5

16

16.5

17

17.5

18

18.5

Net Profit Margins

Net Profit Margins

Return on long term funds (%)

Mar'15 Mar'14 Mar'13 Mar'12 Mar'110

10

20

30

40

50

60

Return %

Return %

Profit After Tax (PAT) (Rs.in billion)and EPS

It the net profit earned by the company after deducting all expenses like interest, depreciation and tax.

PAT can be fully retained by a company to be used in the business. However dividend is paid to the share holders from this residue.

DEFINITION OF 'EARNINGS PER SHARE - EPS'The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.

RETURN ON EQUITY

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

TOTAL DEPOSITS AND ADVANCES..

Total Assets..The total assets of

ICICI Bank shows an upward trend as seen in the graph…

The given figures are in Billions of Rupees…

Cost to Income ratio Cost to income ratio is

calculated by dividing the operating expenses by the operating income generated i.e. net interest income generated and other incomes.

Cost to income ratio= operating expenses/operating income.

Where, operating expenses= employee cost + other expenses and operating income= net interest income + other income.

BIBLOGRAPHY…

www.money.rediff.com/companies/ICICI-Bank-Ltd

www.moneycontrol.comwww.investopedia.comwww.allbankingsolutions.co

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