Contents

Industry Profile

Company Profile

Product Profile

Future growth & Prospect

General introduction

Objectives of the study

Research methodology

Findings

Suggestions

Conclusion

Learning Experience

Industry Profile :• The Indian banking market is growing at an

astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middleclass, and technological innovations are all contributing to this growth.

• The country’s middle class accounts for over 320 million People.

• Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation.“

• Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital,” says Prathima Rajan, analyst in Celent's banking group and author of the report.

Company Profile :

• ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank by market capitalization and second largest overall in terms of assets.

• Total assets of Rs. 3,562.28 billion (US$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the nine months ended December 31, 2009.

• The Bank also has a network of 1,640+ branches (as on February 11, 2010) and about 4,721 ATMs in India and presence in 18 countries, as well as some 24 million customers (at the end of July 2007).

• 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).

Company Profile(Contd) :

TYPE Private

INDUSTRY Banking, Insurance and Capital market

FOUNDED 1955(As industrial credit and investment corporation of India)

HEADQUARTERS ICICI Bank ltd,BandraMumbai

CEO Chanda Kochhar

Products Loans, Credit cards, Savings, Investment vehicles, Insurance etc.

Product Profile :

Funds & Investments

Mutual Funds Portfolio Management services Alternative investments Deposits

Insurance & Risk Protection

Life Insurance General Insurance

Banking Products

Savings Account Family wealth Account Home Loans Car Loans Foreign Exchange Services Lockers Demat Account

Business Banking

Business Loans Business Insurance Business advice by Experts

Banking Services

iMobile iwealth e-Locker

Future Growth & Prospects

• To be the leading provider of financial services in India and a major global bank. To be the preferred brand for total financial and banking solutions for both corporate and individuals. To be the dominant Life, Health and Pensions player built on trust by world- class people and service.

The ICICI Bank hopes to achieve by:

• Understanding the needs of customers and offering them superior products and service. Leveraging technology to service customers quickly, efficiently and conveniently.

• Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to their policy holders.

• Providing an enabling environment to foster growth and learning to their employees.

General Introduction :

“PORTFOLIO MANAGEMENT AND MUTUAL FUND ANALYSIS”

• Investment options : Savings form an important part of the economy of any nation. With the savings invested in various options available to the people, the money acts as the driver for growth of the country. Indian financial scene too presents a plenty of avenues to the investors. Though certainly not the best or deepest of markets in the world, it has reasonable options for an ordinary man to invest his savings.

• What is Portfolio Management? An investor considering in securities is faced with the problem of choosing from

among a large number of securities. His choice depends upon the risk return characteristics of individual securities. He would attempt to choose the most desirable securities and like to allocate his funds over this group of securities. Again he is faced with problem of deciding which securities to hold and how much to invest in each. The investor faces an infinite number of possible portfolios or groups of securities. The risk and return characteristics of portfolios differ from those of individual securities combining to form a portfolio. The investor tries to choose the optimal portfolio taking into consideration the risk return characteristics of all possible portfolios.

General Introduction (Contd) : 

Performance Measures Of Mutual Funds :

• Mutual Fund industry today, with about 34 players and more than five hundred schemes, is one of the most preferred investment avenues in India. However, with a excess of schemes to choose from, the retail investor faces problems in selecting funds. Factors such as investment strategy and management style are qualitative, but the funds record is an important indicator too.

• Though past performance alone can not be indicative of future performance, it is, frankly, the only quantitative way to judge how good a fund is at present. Therefore, there is a need to correctly assess the past performance of different mutual funds.

Risk involved in investing in Mutual Funds?

• Mutual Funds do not provide assured returns. Their returns are linked to their performance. They invest in shares, debentures and deposits. All these investments involve an element of risk. The unit value may vary depending upon the performance of the company and companies may default in payment of interest / principal on their debentures / bonds / deposits.

Objectives of the study :

• To understand the basic concepts of Portfolio management and Mutual funds and its benefits as an investment avenue.

• To know about the top performing mutual fund schemes • To measure the performance of mutual funds using Sharpe’s performance index. • To calculate the risk and return of different Banks.

• To calculate an ideal portfolio using Sharpe’s model of different Banks.

Research methodology :

Descriptive Analytical Research

PRIMARY DATA : • It includes the data collected from the personal interaction with authorized manager of Indian

ICICI Bank. SECONDARY DATA :

• The secondary method includes the lectures delivered by the super intend of respective dept. The Boucher and materials provided by ICICI Bank & also collected from www.moneycontrol.com

Findings :

• The top performing mutual Funds are :

1. ICICI Prudential Top 100 Fund(G)2. Kotak 503. Birla Sun Life top 100 Fund(G)4. SBI Magnum Midcap fund(G)5. HDFC Top 200 fund6. Reliance Vision Fund

Findings :

• The study analyzed four different funds using Sharpe’s index model which ranked Ist i.e. 1.88 for ICICI Pru Top 100, 1.182 for Kotak , 1.11 for Birla SL Top 100 and the lowest among the banks was HDFC top 200 is 0.948.

ICICI pru Top 100

Birla SL Top 100

HDFC top 200

Kotak 500

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Sharpe’s IndexInterpretation : The larger the SI, better the fund has performed. Thus, ICICI Pru Top 100 Sharpe’s Index is better i.e 1.88, next Kotak 50 has SI of 1.182, then Birla SL Top 100 has SI of 1.11,the lowest among the banks are HDFC top 200 is 0.948, Sharpe’s index can be used to rank the desirability of funds or portfolios, but not the individual assets. The individual asset contains its diversifiable risk.

Findings(Contd)

• The ICICI has 2.5829% of Return and 4.77% of Risk, AXIS Bank has 2.77 % of Return and 4.72% of Risk, SBI has 1.40% of Return and 4.65% of Risk, IDBI has 1.26% of Return and 5.96% of Risk, HDFC has 1.23% of Return and 5.13% of Risk, KOTAK has 2.64% of return and 5.85% of Risk. The comparison of the Risk and Return between BANKING SECTOR suggest that the investment in ICICI & AXIS is better than Other banks because there return is more compared to other Banks and risk is less.

ICICI AXIS SBI IDBI HDFC Kotak0

1

2

3

4

5

6

7

MeanRiskInterpretation:

The comparison of the Risk and Return between BANKING SECTOR says that investment in ICICI & AXIS is better than Other banks because there return is more compared to other Banks and risk is less.

Findings(Contd)

• The investor always likes to purchase a combination of stocks that provides the highest return and has lowest risk. Sharpe’s model helps us to analyze the portfolio. As per the model analysis AXIS bank is 2.78% is yielding the highest return followed by ICICI Bank i.e 2.58%, KOTAK bank is 2.64%, SBI bank is 1.40%, IDBI bank is 1.27%,HDFC bank is 0.23%.Investing in these Banks investor can earn good return compared to other Banks.The less return yielding Bank is HDFC bank 0.23%.

Interpretation:• The investor always likes to purchase a

combination of stocks that provides the highest return and has lowest risk. Sharpe’s model helps us to analyze the portfolio. As per the model analysis AXIS bank is 2.78% is yielding the highest return followed by ICICI Bank i.e 2.58%, KOTAK bank is 2.64%, SBI bank is 1.40%, IDBI bank is 1.27%,HDFC bank is 0.23%

ICICI AXIS SBI IDBI HDFC KOTAK0

0.5

1

1.5

2

2.5

3

sharpe's return

Suggestions :

 • One should identify the degree of risk bearing capacity one has and also clearly state the

expectations from the investments.

• It is important to identify the nature of investment and to know if one is compatible with the investment.

• It is thus important to know the risks associated with the fund and align it with the quantum of risk one is willing to take. One should take a look at the portfolio of the funds for the purpose.

• One should decide about what he wants the money for and it is this investment goal that should be the guiding light for all investments done.

• Identifying the proposed investment philosophy of the fund will give an insight into the kind of risks that it shall be taking in future.

Conclusion :

• If one can sidestep the common investor mistakes, then one has taken the first and biggest step in the right direction. Diversified stock portfolios have offered superior long term inflation protection. Equities are especially important today with people living longer and retiring early. To understand stock funds, one needs to be familiar with the characteristics of the different types of companies they hold. Portfolio managers have done a fairly good job in generating positive returns. It may lead to gain investors confidence. Thus over all good performance of the funds is a sign of development in new era in capital market.

On the basis of the analysis the performance of the schemes during the study period can be concluded to be good. Those who want to eliminate the risk element but still want to reap a better then it would be advisable to go for debt or arbitrage schemes which ensures both safety and returns

Learning Experiences

 • I got adequate knowledge about ICICI Bank and its operations.

• There is lot of opportunity to study regarding organization’s frame work and also day to day operation.

• The branch manager of the Syndicate Bank guided me for analyzing strength, weakness, opportunities, and threats of the organization.

• Daily large number of customer visiting syndicate bank, that made easy accessibility of overall operation process of the organization.

• According banking function the overall operation divided as like deposits, withdrawal, and lendig.etc, .Each operation will be looking after by respective employee.

• I enquired details regarding bank product and services with bank manager and also respective employee. All have guided me according to their knowledge and sufficient information is provided by them.

Thank You