A study on Financial Performance of ICICI Bank with special reference to loans and Deposits
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Transcript of A study on Financial Performance of ICICI Bank with special reference to loans and Deposits
“A STUDY ON FINANCIAL PERFORMANCE OF ICICI BANK WITH SPECIAL REFERENCE TO LOANS AND DEPOSITS”
Company profileCompany Name : ICICI BankFounded : June 1994, Industry : Banking, Financial ServicesEstablished At : VadodaraHeadquarters : Mumbai, Maharashtra, IndiaProducts : Credit cards, corporate banking, finance .Etc.No of branches : 4,079No ATMs : 13,449No. of Employees : 67,857Key people : Mr. M. K. Sharma (Chairman) Mrs.Chanda Kochhar (MD & CEO)Area Served : WorldwideWebsite : www.icicibank.com
Research methodology Objectives To Study about the history, growth and achievement of ICICI Bank To Study about Loan lending policy and procedures of Bank To Study about various loans and advances of ICICI Bank To Study about various deposits of ICICI bank To Study the financial performance of the ICICI bank
Source of Data Collection:Primary data Secondary data
Limitations of the study:Busy schedule
Total loan and advances of ICICI Bank
2010-11 2011-12 2012-13 2013-14 2014-150.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
4,500.00
2,163.662,537.28
2,902.493,387.03
3,875.22
Total loan and advances
Types of loans Home loans Car loans Gold loans Personal loans Loan against securities Construction equipment loans Commercial vehicle loans
Total deposits:
2010-11 2011-12 2012-13 2013-14 2014-150.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
2,256.022,555.00
2,926.143,319.14
3,615.63
Total deposits
Types of DepositsFixed DepositRecurring DepositSecurity Deposits
Table showing common-size profit and loss accountMar-11 % Mar-12 % Mar-13 % Mar-14 % Mar-15 %
INCOME
Interest earned 259,740,528
79.62
335,426,522
81.72
400,755,969
82.76
441,781,528
80.90
490,911,399 80.13
Other income 66,478,925
20.38
75,027,598
18.28
83,457,012
17.24
104,278,721
19.10
121,761,305 19.87
TOTAL 326,219,453
100.00
410,454,120
100.00
484,212,981
100.00
546,060,249
100.00
612,672,704 100.00
EXPENDITURE
Interest expended 169,571,515
51.98
228,084,964
55.57
262,091,848
54.13
277,025,886
50.73
300,515,294 49.05
Operating expenses 66,172,492
20.28
78,504,433
19.13
90,128,837
18.61
103,088,614
18.88
114,958,307 18.76
Provisions and contingencies
38,961,684
11.94
39,212,151
9.55
48,737,569
10.07
67,840,979
12.42
85,445,554 13.95
TOTAL 274,705,691
84.21
345,801,548
84.25
400,958,254
82.81
447,955,479
82.03
500,919,155 81.76
NET PROFIT FOR THE YEAR (I-II)
51,513,762
15.79
64,652,572
15.75
83,254,727
17.19
98,104,770
17.97
111,753,549 18.24
Table showing common-size balance sheetMar-11 % Mar-12 % Mar-13 % Mar-14 % Mar-15 %
CAPITAL AND LIABILITIES
Capital
11,518,200 0.28 11,527,683 0.24
11,536,362 0.21 11,550,446 0.19
11,596,608 0.18
Employees stock options outstanding 2,929 0.00 23,854 0.00 44,835 0.00 65,744 0.00
74,388 0.00
Reserves and Surplus 539,388,244 13.28 592,500,885 12.51 655,478,392 12.21 720,517,086 12.12
792,622,557 12.27
Deposits 2,256,021,077 55.54
2,554,999,561 53.94
2,926,136,257 54.51
3,319,136,570 55.82
3,615,627,301
55.96
Borrowings 1,095,542,771 26.97 1,401,649,073 29.59 1,453,414,944 27.08 1,547,590,539 26.03
1,724,173,498 26.68
Other Liabilities and Provisions 159,863,467 3.94 175,769,846 3.71 321,336,021 5.99 347,555,454 5.84
317,198,572 4.91
TOTAL 4,062,336,688 100.00 4,736,470,902 100.00 5,367,946,811 100.00 5,946,415,839 100.00
6,461,292,924 100.00
ASSETS
Cash and Balances with Reserve Bank of India 209,069,703 5.15 204,612,935 4.32
190,527,309 3.55 218,218,262 3.67
256,529,069 3.97
Balances with Banks and Money at Call and Short Notices 131,831,128 3.25 157,680,199 3.33
223,647,879 4.17 197,077,695 3.31
166,517,084 2.58
Investments 1,346,859,630 33.15
1,595,600,430 33.69
1,713,935,993 31.92
1,770,218,164 29.77
1,865,800,348
28.88
Advances 2,163,659,014 53.26
2,537,276,579 53.57
2,902,494,351 54.07
3,387,026,492 56.96
3,875,220,728
59.98
Fixed Assets 47,442,551 1.17 46,146,870 0.97 46,470,587 0.87 46,781,360 0.79
47,255,187 0.73
Other Assets 163,474,662 4.02 195,153,889 4.12 290,870,692 5.42 327,093,866 5.50
249,970,508 3.87
TOTAL 4,062,336,688 100.00 4,736,470,902 100.00 5,367,946,811 100.00 5,946,415,839 100.00
6,461,292,924 100.00
Trend Analysis1)TREND ANALYSIS OF DEPOSITS
2010-11 2011-12 2012-13 2013-14 2014-150.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
100.00113.25
129.70
147.12160.27
TREND PERCENTAGE
TREND PERCENTAGE
2)TREND ANALYSIS OF LOANS AND ADVANCES
2010-11 2011-12 2012-13 2013-14 2014-150.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
100.00
117.27134.15
156.54
179.10
TREND PERCENTAGE
TREND PERCENTAGE
Ratio Analysis1)Net Profit RatioNet Profit after Tax *100Sales or Total Income
2010-11 2011-12 2012-13 2013-14 2014-1514.50
15.00
15.50
16.00
16.50
17.00
17.50
18.00
18.50
15.79 15.75
17.19
17.9718.24
Ratio
2) Interest Expended to Interest Earned Ratio:INTEREST EXPENDED/INTEREST EARNED*100
2010-11 2011-12 2012-13 2013-14 2014-1556.00
58.00
60.00
62.00
64.00
66.00
68.00
70.00
65.28
68.00
65.40
62.71
61.22
Ratio
Ratio
3)Cash to deposit ratio Total Cash Total Deposits
2010-11 2011-12 2012-13 2013-14 2014-150.000
0.010
0.020
0.030
0.040
0.050
0.060
0.070
0.080
0.090
0.1000.093
0.080
0.065 0.0660.071
CASH TO DEPOSIT
CASH TO DEPOSITRa
tio
4)Total advance to total assets ratio: TOTAL ADVANCE TOTAL ASSETS
2010-11 2011-12 2012-13 2013-14 2014-150.48
0.50
0.52
0.54
0.56
0.58
0.60
0.62
0.53 0.540.54
0.57
0.60
TOTAL ADVANCE TO TOTAL ASSETS
TOTAL ADVANCE TO TOTAL ASSETS
Ratio
5)Total investment to total assets ratio:TOTAL INVESTMENTTOTAL ASSETS
2010-11 2011-12 2012-13 2013-14 2014-150.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.330.34
0.32
0.30
0.29
TOTAL INVESTMENT TO TOTAL ASSETS
TOTAL INVESTMENT TO TOTAL ASSETS
Ratio
6)Loans to deposits ratio Loans and Advances*100 Deposits
2010-11 2011-12 2012-13 2013-14 2014-1590.00
92.00
94.00
96.00
98.00
100.00
102.00
104.00
106.00
108.00
110.00
95.91
99.31 99.19
102.05
107.18
LOANS TO DEPOSIT RATIO
LOANS TO DEPOSIT RATIO
Ratio
7)Net interest margin ratio:Interest earned – Interest expended Earning Assets
2010-11 2011-12 2012-13 2013-14 2014-150.0000
0.0050
0.0100
0.0150
0.0200
0.0250
0.0300
0.0204 0.0211
0.0238 0.0246 0.0254
NET INTEREST MARGIN
NET INT...Ratio
8)Gross Non-Performing Assets
2010-11 2011-12 2012-13 2013-14 2014-150
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
3.78
3.033.22
3.62
4.47
Gross NPA%
Gross NPA
Ratio
Gross NPA *100 Gross Advances
9)Net Non-Performing Assets:Net NPA *100Net Advances
2010-11 2011-12 2012-13 2013-14 2014-150
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
1.11
0.73 0.77
0.97
1.61
Net NPA (%)
NPA (%)
Ratio
10)Return on equity (ROE)Net profit* 100Net worth
2010-11 2011-12 2012-13 2013-14 2014-150.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
9.35
10.70
12.4813.40
13.89
ROE
ROERa
tio
11)Current and savings Account Ratio (CASA RATIO)Deposits in current and savings account Total Deposits
2010-11 2011-12 2012-13 2013-14 2014-150.400
0.410
0.420
0.430
0.440
0.450
0.460
0.451
0.435
0.419
0.429
0.455
CASA Ratio (%)Ra
tio
Findings Deposits of the bank have increased year by year. Advances of the bank is also showing increasing trend. Decrease in Interest expended to interest earned Ratio. Decrease in Total investment to total assets Ratio. NPA was increased. Increase in Net Interest Margin Ratio. CASA Ratio shows increase in trend.
Suggestion Try to Bring down the NPA Bank should try to maintain their profitability Try to Maintain their Deposit Reserves Simplification of bank procedure Try to Maintain the CASA Ratio
Conclusion
On the basis of various techniques applied for the financial analysis of ICICI Bank we can arrive at a conclusion that the financial position and overall performance of the bank is satisfactory.
Income of the bank has increased over the period but not in the same pace as of expenses. But the bank has succeeded in maintaining a reasonable profitability position