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BESS INSTITUTE OF MANAGEMENT STUDIES &
RESEARCH, MUMBAI
ANALYSIS OF FINANCIAL STATEMENTS
PROJECT REPORT ON RATIO ANALYSIS OF ICICI & SBI
BANK
NAME: SHANKAR L. CHACHARKAR
ROLL NO: 10
SUBMITTEDTO: PROF. SAPATWALA
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INTRODUCTION OF BANKING
Definition Of Bank:
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
ORIGIN OF THE WORD BANK:-
The origin of the word bank is shrouded in mystery. According to one view point the Italian
business house carrying on crude from of banking were called banchi bancheri" According to
another viewpoint banking is derived from German word "Branck" which mean heap or mound.
In England, the issue of paper money by the government was referred to as a raising a bank.
Banking system in India
Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of
the country. This is one of the main reasons of India's growth process.
HISTORY OF BANKING IN INDIA
Banking in India has its origin as early or Vedic period. It is believed that the transitions from
many lending to banking must have occurred even before Manu, the great Hindu furriest, who
has devoted a section of his work to deposit and advances and laid down rules relating to the rate
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of interest. During the mogul period, the indigenous banker played a very important role in
lending money and financing foreign trade and commerce.
With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of
India was taken over by the newly constituted SBI. The Reserve Bank of India (RBI) which is
the Central bank was established in April, 1935 by passing Reserve bank of India act 1935. The
Central office of RBI is in Mumbai and it controls all the other banks in the country.
In the wake of Swadeshi Movement, number of banks with the Indian management were
established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of
Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country were
nationalized and on 15th April 1980, 6 more commercial private sector banks were taken over by
the government.
The first bank in India, though conservative, was established in 1786. From 1786 till today,the
journey of Indian Banking System can be segregated into three distinct phases. They areas
mentioned below:
Early phase from 1786 to 1969 of Indian Banks
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
New phase of Indian Banking System with the advent of Indian Financial & Banking Sector
Reforms after 1991.
Public Sector Banks
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 was 20. At present there are
total 26 Public Sector Banks in India (As on 26-09-2009). Of these 19 are nationalized banks,
6(STATE BANK OF INDORE ALSO MERGED RECENTLY) belong to SBI & associates
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group and 1 bank (IDBI Bank) is classified as other public sector bank. Welfare is their primary
objective.
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.
Private banking in India was practiced since the beginning of banking system in India. The first
private bank in India to be set up in Private Sector Banks in India was Indus And Bank. It is one
of the fastest growing Private Sector Bank in India. IDBI ranks the tenth largest development
bank in the world as Private Banks in India and has promoted world class institutions in India.
The first Private Bank in India to receive an in principle approval from the Reserve Bank of
India was Housing Development Finance Corporation Limited, to set up a bank in the private
sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was
incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and
commenced operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet another
Private Bank of India was incorporated in the year 1930
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INDIAN BANKING INDUSTRY
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 countrys middle class accounts for over 320 million People. In correlation with the growth
of the economy, rising income levels, increased standard of living, and affordability of banking
products are promising factors for continued expansion.
The Indian banking Industry is in the middle of an IT revolution, focusing on the expansion of
retail and rural banking. Players are becoming increasingly customer -centric in their approach,
which has resulted in innovative methods of offering new banking products and services. 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.
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State Bank of India
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the
bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed
the Bank of Bengal. These three banks remained at the apex of modern banking in India till their
amalgamation as the Imperial Bank of India on 27 January 1921.The three banks were governed by royal charters, which were revised from time to time. Each
charter provided for a share capital, four-fifth of which were privately subscribed and the rest
owned by the provincial government. The members of the board of directors, which managed the
affairs of each bank, were mostly proprietary directors representing the large European managing
agency houses in India. The rest were government nominees, invariably civil servants, one of
whom was elected as the president of the board.
TRANSFORMATION JOURNEY IN STATE BANK OF INDIA
The State Bank of India, the countrys oldest Bank and a premier in terms of balance sheet size,
number of branches, market capitalization and profits is today going through a momentous phase
of Change and Transformationthe two hundred year old Public sector behemoth is today
stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign
Banks a run for their money.
The bank is entering into many new businesses with strategic tie upsPension Funds, General
Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant
Acquisition, Advisory Services, structured products etceach one of these initiatives having a
huge potential for growth.
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The Bank is forging ahead with cutting edge technology and innovative new banking models, to
expand its Rural Banking base, looking at the vast untapped potential in the hinterland and
proposes to cover 100,000 villages in the next two years.
The Bank is changing outdated front and back end processes to modern customer friendly
processes to help improve the total customer experience. With about 8500 of its own 10000
branches and another 5100 branches of its Associate Banks already networked, today it offers the
largest banking network to the Indian customer. The Bank is also in the process of providing
complete payment solution to its clientele with its over 21000 ATMs, and other electronic
channels such as Internet banking, debit cards, mobile banking, etc.
Recognition to State Bank of India by Media
The CNN IBN, Network 18 recognized this momentous transformation journey, the StateBank of India is undertaking, and has awarded the prestigious Indian of the Year
Business, to its Chairman, Mr. O. P. Bhatt in January 2008.
State Bank of India has been adjudged the best bank 2009 by Business India (August-2009)
Shri Om Prakash Bhatt declared as one of the "25 most valuable Indians" by the weekmagazine for 2009 (published in august-2009 issue)
The Bank was voted, for the third year in a row, as the Most Preferred Housing Loanand Most Preferred Bank in the CNBC AWAAZ Consumer Awards in a survey
conducted by CNBC TV18 in association with AG Nielsen & Company.
The Bank was also awarded the Best Home Loan Provider as well as The Best Bankby Outlook Money Awards, 2008.
The Bank was awarded Readers Digest Pegasus Corporate Social Responsibility Award2007 in recognition of its contribution towards Rural Community Development.
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Balance Sheet of State Bank of India.
As On March 2007, Mar 2008, Mar2009, Mar2010, Mar 2011.
(Rs. In crores) Mar '07 Mar '08 Mar '09 Mar '10 Mar '11
12 mths 12 mths 12 mths 12 mths 12 mths
Capital and Liabilities:
Total Share Capital 526.3 526.3 631.47 634.88 634.88
Equity Share Capital 526.3 526.3 631.47 634.88 634.88
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 27,117.79 30,772.26 48,401.19 57,312.82 65,314.32Revaluation Reserves 0 0 0 0 0
Net Worth 27,644.09 31,298.56 49,032.66 57,947.70 65,949.20
Deposits 380,046.06 435,521.09
537,403.94
742,073.13
804,116.23
Borrowings 30,641.24 39,703.34 51,727.41 53,713.68 103,011.60
Total Debt 410,687.30 475,224.43
589,131.35
795,786.81
907,127.83
Other Liabilities & Provisions 55,538.17 60,042.26 83,362.30 110,697.57
80,336.70
Total Liabilities 493,869.56 566,565.25
721,526.31
964,432.08
1,053,413.73
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Assets
Cash & Balances with RBI 21,652.70 29,076.43 51,534.62 55,546.17 61,290.87
Balance with Banks, Money atCall
22,907.30 22,892.27 15,931.72 48,857.63 34,892.98
Advances 261,641.53 337,336.49
416,768.20
542,503.20
631,914.15
Investments 162,534.24 149,148.88
189,501.27
275,953.96
285,790.07
Gross Block 7,424.84 8,061.92 8,988.35 10,403.06 11,831.63
Accumulated Depreciation 4,751.73 5,385.01 5,849.13 6,828.65 7,713.90
Net Block 2,673.11 2,676.91 3,139.22 3,574.41 4,117.73
Capital Work In Progress 79.82 141.95 234.26 263.44 295.18
Other Assets 22,380.84 25,292.31 44,417.03 37,733.27 35,112.76
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Total Assets 493,869.54 566,565.24
721,526.32
964,432.08
1,053,413.74
Contingent Liabilities 191,819.34 259,536.57
736,087.59
614,603.47
429,917.37
Bills for collection 57,618.44 70,418.15 93,652.89 152,964.0
6
166,449.0
4Book Value (Rs) 525.25 594.69 776.48 912.73 1,038.76
PROFIT AND LOSS ACCOUNT OF STATE BANK OF INDIA.
For The Year Ended March 2006, Mar2007, Mar2008, Mar2009, Mar 2010
(Rs. In Crores)Mar '08 Mar '09 Mar '10 Mar '11
12 mths 12 mths 12 mths 12 mths
Income
Interest Earned 35,794.93 39,491.03 48,950.31 63,788.43
Other Income 7,388.69 7,446.76 9,398.43 12,691.35
Total Income 43,183.62 46,937.79 58,348.74 76,479.78
Expenditure
Interest expended 20,159.29 23,436.82 31,929.08 42,915.29
Employee Cost 8,123.04 7,932.58 7,785.87 9,747.31
Selling and Admin Expenses 1,853.32 3,251.14 4,165.94 5,122.06
Depreciation 729.13 602.39 679.98 763.14Miscellaneous Expenses 7,912.15 7,173.55 7,058.75 8,810.75
Preoperative Exp Capitalised 0 0 0 0
Operating Expenses 11,872.89 13,251.78 14,609.55 18,123.66
Provisions & Contingencies 6,744.75 5,707.88 5,080.99 6,319.60
Total Expenses 38,776.93 42,396.48 51,619.62 67,358.55
Mar '06 Mar '07 Mar '08 Mar '09
12 mths 12 mths 12 mths 12 mths
Net Profit for the Year 4,406.67 4,541.31 6,729.12 9,121.23Extraordionary Items 0 0 0 0
Profit brought forward 0.34 0.34 0.34 0.34
Total 4,407.01 4,541.65 6,729.46 9,121.57
Preference Dividend 0 0 0 0
Equity Dividend 736.82 736.82 1,357.66 1,841.15
Corporate Dividend Tax 103.34 125.22 165.87 248.03
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Per share data (annualised)
Earning Per Share (Rs) 83.73 86.29 106.56 143.67
Equity Dividend (%) 140 140 215 290
Book Value (Rs) 525.25 594.69 776.48 912.73
Appropriations
Transfer to Statutory Reserves 3,566.51 3,682.15 5,205.69 6,725.15
Transfer to Other Reserves 0 -2.88 -0.1 306.9
Proposed Dividend/Transfer toGovt
840.16 862.04 1,523.53 2,089.18
Balance c/f to Balance Sheet 0.34 0.34 0.34 0.34
Total 4,407.01 4,541.65 6,729.46 9,121.57
Cash Flow Statement For the year ended March 2009, Mar 10, Mar 11.
Mar '09 Mar '10 Mar '11
12 mths 12 mths 12 mths
Net Profit Before Tax 10438.9 14180.64 13926.1
Net Cash From Operating Activities -856.87 29479.73 -1804.99
Net Cash (used in)/from -2798.01 -1651.93 -1761.52
Investing Activities
Net Cash (used in)/from Financing
Activities
19371.12 5097.38 -3359.67
Net (decrease)/increase In Cash and Cash
Equivalents
15716.24 32925.18 -6926.18
Opening Cash & Cash Equivalents 51968.69 71478.62 103110.02
Closing Cash & Cash Equivalents 67466.34 104403.8 96183.84
Ratio Analysis of State Bank of India Liquidity Ratios:1. Current Ratio: Current Assets / Current Liabilities
F.Y. 2008-09 - 0.53 F.Y. 2009-10 - 0.34
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F.Y. 2010-11 - 0.43
Interpretation: An ideal ratio is 2:1 but public sector bank have a very low current ratio asthey have very little need for current assets. But liquidity position of the bank is not good.
Lesser the current ratio, less will be the firms ability to meet the current obligations.
Quick Ratio: Current AssetsStockprepaid Expenses / Current Liabilities
F.Y. 2008-096.15 F.Y. 2009-10- 5.74 F.Y. 2010-119.07
Interpretation: It is more rigorous and penetrating test of the liquidity position of a bank.1:1 is the satisfactory level to meet all current claims. Banks short term solvency is in
better position.
Profitability Ratios:
Operating Profit Ratio: Earnings Before interest and Tax / Net Sales * 100
F.Y. 2008-0919.29 F.Y. 2009-10 - 19.50 F.Y. 2010-1116.96
Interpretation: Banks operating profit is increasing as compared to previous year, itshows that it would ensure adequate return to owners in comparison to previous year .
1. Net Profit Ratio: Earning After Tax / Net Sales * 100
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F.Y. 2008-0911.65 F.Y. 2009-10 - 12.03 F.Y. 2010-1110.54
Interpretation: As the net profit ratio is not increasing at a satisfied level, it would notensure adequate return to owners as well as it enables the bank to with stand adverse
economic conditions.
Capital Structure Ratios:
1. Debt Equity Ratio: Total Debts / Equity Funds
F.Y. 2008-0910.96 F.Y. 2009-10 - 12.81 F.Y. 2010-1112.19
Interpretation: As it shows that the ratio is decreasing as compared to previous year, itis the danger signal for owners. If the project fails financially the owners would loose
heavily.
2. Fixed Asset Turnover Ratio: Fixed assets / Net Sales * 100
F.Y. 2008-096.32 F.Y. 2009-10 - 7.20 F.Y. 2010-117.26
Interpretation: The fixed asset turnover ratio is increasing at a slow but steady rate. Themanagement is efficient in maintaining the rate of increase in the fixed asset with respect
to the Net sales.
Earnings Ratio:1. Earnings Per Equity Share : NPATPreference Dividend / No. of Equity Shares
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F.Y. 2008-09 - 106.39 F.Y. 2009-10 - 143.71 F.Y. 2010-11 - 144.54
Interpretation: The earning per share in the year 2008-09 has increased considerably which is a
good sign for the investor but the year 2009-10 has being remained stagnant which means the
bank has not shown good signs of growth.
DIVIDENT PER SHARE :
DPS = (DSD)/S
D - Sum of dividends over a period (usually 1 year)SD - Special, one time dividendsS - Shares outstanding for the period
F.Y. 2008-0929.00
F.Y. 2009-1030.00
F.Y. 2010-1130.00
Interpretation: The divident per share in initial 29.00 and after that it increases and it
remain constant
RETURN ON LONG TERM FUNDS:
RETURN ON LONG TERM FUNDS: EBIT/LONG TERM FUNDS*100
F.Y. 2008-09100.03
F.Y. 2009-1095.02
F.Y. 2010-1196.72
Interpretation: The return on long term funds decreases from 2008-09 to 2009-10 and then
it increases in 2010-11.
TOTAL ASSET TURNOVER RATIO:
TOTAL ASSET TURNOVER RATIO: SALES/ TOTAL ASSETS
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F.Y. 2008-090.09
F.Y. 2009-100.09
F.Y. 2010-110.08
Interpretation: The total asset turnover ratio remain constant in 2008 to 2010 but it but it
decreases in 2011.
ASSET TURNOVER RATIO:
ASSET TURNOVER RATIO: REVENUE/AVERAGE TOTAL ASSETS
F.Y. 2008-097.20
F.Y. 2009-107.26
F.Y. 2010-117.24
Interpretation: The asset turnover ratio is an average for three years.
CAPITAL ADEQUACY RATIO:
CAPITAL ADEQUACY RATIO=(TIER ONE CAPITAL+ TIER TWO CAPITAL)/RISK WEITAGE CAPITAL
F.Y. 2008-0914.25
F.Y. 2009-1013.39
F.Y. 2010-1111.98
Interpretation : The capital adequacy ratio decreases from 2009 to 2011.
EARNING RETENTION RATIO:EARNING RETENTION RATIO= Plowed back gross profits / total gross profits
F.Y. 2008-0963.23
F.Y. 2009-1061.40
F.Y. 2010-1164.49
Interpretation: The earning retention ratio it decreases from 2008-09 to 2009-10. But it
increases again in 2010-11.
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NET PROFIT/ TOTAL FUNDS:
F.Y. 2008-090.96
F.Y. 2009-101.08
F.Y. 2010-111.34
Interpretation: The net profit/ total funds is initially low but it increases continuously for next
two year.
EARNING PER SHARE:
F.Y. 2008-0978.88
F.Y. 2009-1078.82
F.Y. 2010-1176.80
Interpretation: The earning per share for 2008-09 to 2009-10 are nearby same but it decreasesfor next year.
ICICI Bank Ltd.
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81
billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year
ended March 31, 2010. The Bank has a network of 2,528 branches and about 6,000 ATMs in
India, and has a presence in 19 countries, including India. 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 in the areas of investment banking, life
and non-life insurance, venture capital and asset management. The Bank currently has
subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore,
Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and
representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand,
Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and
Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
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National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange (NYSE).
Vision: To be the leading provider of financial services in India and a major global bank.
ICICI Bank Group
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Balance Sheet of ICICI Bank Ltd.
As On March 20076, Mar 2008, Mar2009, Mar2010, Mar 2011
(Rs. In crores)
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11
12 months 12 months 12 months 12 months 12 months
Capital and Liabilities:
Total Share Capital 1,239.83 1,249.34 1,462.68 1,463.29 1,114.89
Equity Share Capital 889.83 899.34 1,112.68 1,113.29 1,114.89
Share Application Money 0 0 0 0 0
Preference Share Capital 350 350 350 350 0
Reserves 21,316.16 23,413.92 45,357.53 48,419.73 50,503.48
Revaluation Reserves 0 0 0 0 0
Net Worth 22,555.99 24,663.26 46,820.21 49,883.02 51,618.37Deposits 165,083.17 230,510.19 244,431.05 218,347.82 202,016.60
Borrowings 38,521.91 51,256.03 65,648.43 67,323.69 94,263.57
Total Debt 203,605.08 281,766.22 310,079.48 285,671.51 296,280.17
Other Liabilities &Provisions
25,227.88 38,228.64 42,895.39 43,746.43 15,501.18
Total Liabilities 251,388.95 344,658.12 399,795.08 379,300.96 363,399.72
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 months 12 months 12 months 12 months 12 months
AssetsCash & Balances with RBI 8,934.37 18,706.88 29,377.53 17,536.33 27,514.29
Balance with Banks,Money at Call
8,105.85 18,414.45 8,663.60 12,430.23 11,359.40
Advances 146,163.11 195,865.60 225,616.08 218,310.85 181,205.60
Investments 71,547.39 91,257.84 111,454.34 103,058.31 120,892.80
Gross Block 5,968.57 6,298.56 7,036.00 7,443.71 7,114.12
Accumulated Depreciation 1,987.85 2,375.14 2,927.11 3,642.09 3,901.43
Net Block 3,980.72 3,923.42 4,108.89 3,801.62 3,212.69
Capital Work In Progress 147.94 189.66 0 0 0
Other Assets 12,509.57 16,300.26 20,574.63 24,163.62 19,214.93
Total Assets
251,388.95 344,658.11 399,795.07 379,300.96 363,399.71
Contingent Liabilities 119,895.78 177,054.18 371,737.36 803,991.92 694,948.84
Bills for collection 15,025.21 22,717.23 29,377.55 36,678.71 38,597.36
Book Value (Rs) 249.55 270.37 417.64 444.94 463.01
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PROFIT AND LOSS ACCOUNT OF ICICI BANK LTD. For The
Year Ended March 2006, Mar2007, Mar2008, Mar2009, Mar 2010
(Rs. In Crores)
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Interest Earned 13,784.50 22,994.29 30,788.34 31,092.55 25,706.93
Other Income 5,036.62 6,962.95 8,878.85 8,117.76 7,292.43
Total Income 18,821.12 29,957.24 39,667.19 39,210.31 32,999.36
Expenditure
Interest expended 9,597.45 16,358.50 23,484.24 22,725.93 17,592.57Employee Cost 1,082.29 1,616.75 2,078.90 1,971.70 1,925.79
Selling and AdminExpenses
2,360.72 4,900.67 5,834.95 5,977.72 6,056.48
Depreciation 623.79 544.78 578.35 678.6 619.5
Miscellaneous Expenses 2,616.78 3,426.32 3,533.03 4,098.22 2,780.03
Preoperative ExpCapitalised
0 0 0 0 0
Operating Expenses 5,274.23 8,849.86 10,855.18 10,795.14 10,221.99
Provisions &Contingencies
1,409.35 1,638.66 1,170.05 1,931.10 1,159.81
Total Expenses 16,281.03 26,847.02 35,509.47 35,452.17 28,974.37Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Net Profit for the Year 2,540.07 3,110.22 4,157.73 3,758.13 4,024.98
Extraordionary Items 0 0 0 -0.58 0
Profit brought forward 188.22 293.44 998.27 2,436.32 2,809.65
Total 2,728.29 3,403.66 5,156.00 6,193.87 6,834.63
Preference Dividend 0 0 0 0 0
Equity Dividend 759.33 901.17 1,227.70 1,224.58 1,337.95
Corporate Dividend Tax 106.5 153.1 149.67 151.21 164.04
Per share data (annualised)Earning Per Share (Rs) 28.55 34.59 37.37 33.76 36.1
Equity Dividend (%) 85 100 110 110 120
Book Value (Rs) 249.55 270.37 417.64 444.94 463.01
Appropriations
Transfer to StatutoryReserves
248.69 1,351.12 1,342.31 2,008.42 1,867.22
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Transfer to OtherReserves
1,320.34 0 0.01 0.01 1.04
ProposedDividend/Transfer toGovt
865.83 1,054.27 1,377.37 1,375.79 1,501.99
Balance c/f to BalanceSheet 293.44 998.27 2,436.32 2,809.65 3,464.38
Total 2,728.30 3,403.66 5,156.01 6,193.87 6,834.63
Cash Flow Statement For the year ended March 2009, Mar 10, Mar 11.
Mar '09 Mar '10 Mar '11
12 mths 12 mths 12 mths
Net Profit Before Tax 5056.1 5116.97 5345.32
Net Cash FromOperating Activities
-11631.15 -14188.49 1869.21
Net Cash (used in)/from -17561.11 3857.88 6150.73
Investing Activities
Net Cash (used in)/from
Financing Activities
29964.82 1625.36 1382.62
Net (decrease)/increase
In Cash and Cash
Equivalents
683.55 -8074.57 8907.13
Opening Cash & Cash
Equivalents
37357.58 38041.13 29966.56
Closing Cash & Cash
Equivalents
38041.13 29966.56 38873.69
Ratio Analysis of ICICI Bank Ltd.
Liquidity Ratios:Current Ratio: Current Assets / Current Liabilities
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F.Y. 2008-09 - 0.72 F.Y. 2009-10 - 0.78 F.Y. 2010-11 - 1.94 Interpretation: An ideal current ratio is 2:1. In the F.Y. 2009-10 bank has tried to
maintain that ratio but not up to the level required. Therefore the liquidity position of the
bank is not good enough.
Quick Ratio: Current AssetsStockprepaid Expenses / Current Liabilities
F.Y. 2008-096.42 F.Y. 2009-10 - 5.94 F.Y. 2010-1114.70 Interpretation: 1:1 is the yardstick for Quick Ratio. It is the satisfactory level to meet all
current claims. But here bank has a ratio of 14.70:1 in the current year therefore Banks
short term solvency is in better position.
Profitability Ratios:Operating Profit Ratio: Earnings Before interest and Tax / Net Sales * 100
F.Y. 2008-0914.45 F.Y. 2009-10 - 14.13 F.Y. 2010-1116.95
Interpretation: Banks operating profit is increasing as compared to previous year, itshows that it would ensure adequate return to owners in comparison to previous year.
Gross Profit Ratio: Gross Profit / Net Sales * 100
F.Y. 2008-0912.99 F.Y. 2009-10 - 12.36 F.Y. 2010-1115.06
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Interpretation: By analyzing the Gross profit ratio we measure that bank has a goodmanagement as it implies that higher the gross profit to sales, higher will be the good
managing power.
Net Profit Ratio: Earning After Tax / Net Sales * 100
F.Y. 2008-0910.51 F.Y. 2009-10 - 9.74 F.Y. 2010-1112.17 Interpretation: As the net profit ratio is first decreasing and the increases therefore the
growth is not steady and it does not ensure equal returns each year to the shareholders.
Capital Structure Ratio:Debt Equity Ratio: Total Debts / Equity Funds
F.Y. 2008-095.27 F.Y. 2009-10 - 4.42 F.Y. 2010-113.91 Interpretation: As it shows that the ratio is decreasing year after year there is a high
amount of risk involved with the owners funds. If the project fails financially the owners
would loose heavily.
Fixed Asset Turnover Ratio: Fixed assets / Net Sales * 100
F.Y. 2008-095.61 F.Y. 2009-10 - 5.14 F.Y. 2010-114.60
Interpretation: The fixed asset turnover ratio is decreasing as per the figures available.Therefore the management is not efficient in maintaining the rate of increase in the fixed
asset with respect to the Net sales.
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Earnings Ratio:Earnings Per Equity Share : NPATPreference Dividend / No. of Equity Shares
F.Y. 2008-09 - 36.78 F.Y. 2009-10 - 33.60 F.Y. 2010-11 - 34.90 Interpretation: The earning per share has fallen down consistently year after year hence it
is not a good sign for the investor to invest with this bank as the management has failed
to increase their EPS ratio.
DIVIDENT PER SHARE :
DPS = (DSD)/SD - Sum of dividends over a period (usually 1 year)SD - Special, one time dividendsS - Shares outstanding for the period
F.Y. 2008-0911.00
F.Y. 2009-1012.00F.Y. 2010-1114.00
Interpretation: The dividend per share it continuously increases from 2008-09 to 2010-
2011.
RETURN ON LONG TERM FUNDS:
RETURN ON LONG TERM FUNDS: EBIT/LONG TERM FUNDS*100
F.Y. 2008-0956.72
F.Y. 2009-1044.72
F.Y. 2010-1142.97
Interpretation: The return on long term funds decreases from 2008-09 to 2010-11 which is
Not good for the bank.
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TOTAL ASSET TURNOVER RATIO:TOTAL ASSET TURNOVER RATIO: SALES/ TOTAL ASSETS
F.Y. 2008-090.10
F.Y. 2009-100.09
F.Y. 2010-110.08
Interpretation: The total asset turnover ratio from 2008-09 to 2010-11 decreases.
ASSET TURNOVER RATIO:
ASSET TURNOVER RATIO: REVENUE/AVERAGE TOTAL ASSETS
F.Y. 2008-095.14
F.Y. 2009-104.60
F.Y. 2010-113.55
Interpretation: The asset turnover ratio is decreased continuously from 2008-09 to 2010-
2011.
CAPITAL ADEQUACY RATIO:
CAPITAL ADEQUACY RATIO=(TIER ONE CAPITAL+ TIER TWO CAPITAL)/RISK WEITAGE CAPITAL
F.Y. 2008-0915.53
F.Y. 2009-1019.41
F.Y. 2010-1119.54
Interpretation: The capital adequacy ratio is increased from 2008-09 to 2010-11.
EARNING RETENTION RATIO:EARNING RETENTION RATIO= Plowed back gross profits / total gross profits
F.Y. 2008-0963.23
F.Y. 2009-1061.40
F.Y. 2010-1164.49
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Interpretation: The earning retention ratio decreases from 2008-09 to 2009-2010 and then again
it increases in 2010-11.
NET PROFIT/ TOTAL FUNDS:
F.Y. 2008-091.08
F.Y. 2009-100.91
F.Y. 2010-110.65
Interpretation: The net profit/ Total funds is increased continuously from 2008-09 to 2010-11
EARNING PER SHARE:
F.Y. 2008-0933.76
F.Y. 2009-1036.10
F.Y. 2010-1144.73
Interpretation : The earning per share is increased continuously from 2008-09 to 2010-11.
State Bank of Indias Director Report (Analyzed)
The Indian economy is back on track and poised to grow by 7.2% in 2009-10. The Operating Profit of the Bank for 2009-10 stood at Rs.18,320.91 crores. The Bank has posted a Net Profit of Rs.9,166.05 crore. While Net Interest Income recorded a growth of 13.41% and Other Income increased by
17.95%.
Operating Expenses increased by 29.84% attributable to higher staff cost and otherexpenses.
The Bank has increased dividend to Rs.30.00 per share. The Net Interest Income of the Bank registered a growth of 13.41% of Rs.23,671.44
crores.
The gross interest income from global operation is Rs.70,993.92 crores.
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Non-interest income stood at Rs.14,968.15 crores in 2009-10. During the year, the Bank received an income of Rs.573.48 crores by way of dividends
from Associate Banks/subsidiaries and joint ventures in India and abroad.
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