ICICI Financial analysis

8/3/2019 ICICI Financial analysis

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PRESENTATION

ON

Financial Analysis of ICICI Bank

BY

AKHIL MAHAJAN

(2010MBE02)


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ICICI Bank - Industrial Credit and InvestmentCorporation of India.

Founded1955

Chairman

K.V. KamathProfit - 4,843.41 crore

Employees - 35,000+

Network - 2,016 branches and about 5,219 ATM

2001 -Acquired Bank of Madura, Illanji Bank,

2005 Investitsionno-Kreditny Bank, 2010 merge

with Bank of Rajasthan.

Introduction


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Financial AnalysisProfitability

Solvency

Liquidity

Stability


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Balance SheetLiabilities Mar '09 Mar '10

Capital and LiabilitiesTotalShare Capital

1,463.29 1,114.89

Equity Share Capital 1,113.29 1,114.89

Preference Share Capital 350.00 0.00

Reserves 48,419.73 50,503.48

Net Worth 49,883.02 51,618.37

Deposits 218,347.82 202,016.60

Borrowings 67,323.69 94,263.57

Total Debt 285,671.51 296,280.17

Other Liabilities & Provisions 43,746.43 15,501.18

Total Liabilities 379,300.96 363,399.72


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Asset Mar '09 Mar '10

Cash & Balances withRBI 17,536.33 27,514.29

Balance with Banks,

Money at Call12,430.23 11,359.40

Advances 218,310.85 181,205.60

Investments 103,058.31 120,892.80

Gross Block 7,443.71 7,114.12Accumulated

Depreciation3,642.09 3,901.43

Net Block 3,801.62 3,212.69

Total Assets 379,300.96 363,399.71


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Balance Sheet shows that there is :-

Decrease in total asset by 4.2%

Net advances decreased by 17.0% , due to

increase in rupee

Total investments increased by 17.3% due to an

increase in investment in government and other

approved securities.

Equity share capital and reserves increased due

to annual accretion to reserves out of profits

Total deposits decreased by 7.5% due to

conscious strategy of reducing wholesale deposits.


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Profit & Loss accountMar '09 Mar '10

IncomeInterest Earned 31,092.55 25,706.93

Other Income 8,117.76 7,292.43

Total Income 39,210.31 32,999.36

ExpensesInterest expended 22,725.93 17,592.57

Employee Cost 1,971.70 1,925.79

Selling and Admin Expenses 5,977.72 6,056.48

Depreciation 678.60 619.50

Miscellaneous Expenses 4,098.22 2,780.03

Preoperative Exp Capitalised 0.00 0.00

Operating Expenses 10,795.14 10,221.99

Provisions & Contingencies 1,931.10 1,159.81

Total Ex enses 35 452.17 28 974.37


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Total income is more than total expenses, but

they decrease as compare to previous year.

This time company has enough income which

can be used for future operations.


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Cash Flow Statement

Mar ' 10 Mar ' 09

rofit before tax 5,345.32 5,116.97

Net cash flow-operating

activity1,869.21 -14,188.49

Net cash used in investing

activity6,150.73 3,857.88

Net cash used in fin. activity 1,382.62 1,625.36

Net inc/dec in cash and

equivlnt8,907.13 -8,074.57

Cash and equivalnt begin of

year29,966.56 38,041.13

Cash and equivalnt end ofear

38,873.69 29,966.56


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Increase in operating activity Due to decrease in

current asset and increase in current liabilities

Increase in investing activities - More disposal of

assets result in inflow of cash

Decrease in finance activities depicts Proceeds

from issue of share capital and repayment of bonds

As there is huge increase in cash shows goodfinancial condition of ICICI bank


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Accounting RatiosProfitability Ratio

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

oEPS = 36.10

Turnover Ratioo Fixed asset turnover ratio = 4.60

Liquidity Ratio

oCurrent ratio = 1.94oLiquid Ratio = 14.70

Solvency Ratio

o

Total debts ratio = 3.91


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References

Books:-

Elements of book keeping, Juneja Chawla Saksena, KalyaniPublishers, 11th edition 2004, Chapter 10 and 11.

Analysis of financial statement, Part B, Janardan Pillay,Ajith Book

Centre, Chapter 11,12,14 and 16.

Websites:-

http://money.rediff.com/companies/icici-bank-ltd/14030056/balance-sheet

http://en.wikipedia.org/wiki/ICICI_Bank

Report:-

ICICI Bank Annual Report FY 2010


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ThankYou

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ICICI Financial analysis