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04/10/2023 Praxis Business School 1

FSA Presentation on

ICICI Bank Ltd.

Submitted to

Dr. Manaswee Kumar samal

Presented By

Amit Kumar Bishnu Panda

04/10/2023 Praxis Business School 2

ICICI Bank is a Second largest bank in India by assets & third largest by market capitalization.

Bank has presence in 19 countries with a network of 2575 branches & 8000 ATM.

Products- Corporate banking, Finance & Insurance, Investment Banking, Mortgage loan, Private banking & Wealth Management

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Revenue-USD 13.82 billion

Profit-USD 1.66 billion

Total assets-USD 119.69 billion

Total Equity-USD 12.21billion

Employee-80,000

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Source of Information1.Directors’ report

2.Management Discussion & Analysis 3. Schedule & notes of FS

4.Auditor’s Report

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Techniques used for FSA

1.Horizontal Analysis2.Trend Analysis3.Ratio Analysis

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Directors’ Report

ICICI Bank Annual Report FY2011.pdfPage 9

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Nifty Tracker

Movement of shares in stock marketICICI_FINANCE2.xlsx

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Horizontal Analysis

It is comparative information for the current year as well as previous year.

icici bank FSA.xlsx

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Trend Analysis

It is a calculation of percentage changes in Financial statement items for a number of

successive years. icici bank FSA.xlsx

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Ratio Analysis

It is establishment of relevant financial relationship between components of financial statements. Financial ratios are the significant indicator of a company financial health.

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Analysis

1.Dupont chart-icicibank2010_dupont.xlsx

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Profitability Ratio

It measures the degree of operating success of the company.

Profit Margin RatioAsset Turnover RatioEarning per share Ratio

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Profit Margin Ratio

Net ProfitRevenue

It measures the amount of net profit earned by each rupee of revenue.

ICICI Bank Axis BankYear ICICI BANK AXIS BANK2011 8.66% 7.29%2010 6.46% 7.14%

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Asset Turnover Ratio

RevenueAverage Total Asset

It measures firm’s efficiency in utilizing its assets

Year ICICI BANK AXIS BANK

2011 0.15 0.21

2010 0.16 0.16

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Earning Per ShareNPAT+Peference Dividend

No. of Equity Shares

EPS is useful in comparing companies’ performance

Year ICICI BANK AXIS BANK

2011 44.72 81.35

2010 34.94 66.16

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1.It indicates the business is affected by the extent of the debt used to finance the asset of the

company.2.The presence of heavy debt in a companies capital

structure is thought to reduce the companies solvency because debt is more risky than Equity

Debt-to-Equity RatioInterest Coverage RatioCredit-to Deposit RatioNPA RatioCASA Ratio

Solvency Ratio

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Debt-to-Equity RatioSecured + Unsecured Loan

Shareholder’s Equity

It measures the relationship of capital provided by creditors to the amount provided by the shareholder’s

Year ICICI BANK AXIS BANK

2011 6.37 11.83

2010 6.04 10.29

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Interest Coverage RatioPBIT

Interest Expenses

It measures the protection available to creditors for payment of interest charges by the company

Year ICICI BANK AXIS BANK2011 1.39 1.59

2010 1.30 1.57

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Credit -to-Deposit RatioTotal AdvancesTotal Deposit

It Indicates how much of the Advances lent by bank is done through deposit.

Higher the ratio, the higher the loan-assets credited from deposit

Year ICICI Bank Axis Bank

2011 95.90% 75.28%

2010 89.69% 73.85%

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Non Performing Assets RatioNet NPA

Net Customer AssetsIt used as a measure of the overall quality of the bank’s loan

book. An NPA are those assets for which interest is overdue for more than 90 days.

Higher ratio reflects rising bad quality of loans

Year ICICI Bank Axis Bank

2011 0.94% 0.26%

2010 1.86% 0.36%

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CASA RatioCurrent & Saving a/c deposits

Total Deposits The CASA ratio shows how much deposit a bank has in the form of current and saving account

deposits in the total deposit. A higher CASA ratio means higher portion of the deposits of the bank has come from current and savings deposit, which is generally a cheaper source of fund. Higher the CASA ratio better the net

interest margin, which means better operating efficiency of the bank.

Year ICICI Bank Axis Bank

2011 45% 41%

2010 41% 46%

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Capital Adequacy Ratio

Tier one capital + Tier two capitalRisk Weighted Assets

This ratio is used to protect depositors and promote the stability and efficiency of financial system

around the world.

Year ICICI BANK AXIS BANK

2011 13.11% 17.42%

2010 29.72% 36.5%

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It relate the market price of a company’s share to the company earning & dividends

Price Earning Ratio

Capital Market Ratio

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Price Earning RatioMarket price per Equity share

Earning per Share

It is a indicator of firm’s growth prospect. High price earning ratio indicates the stock market confidence in company’s future earning growth

Year ICICI BANK AXIS BANK2011 19.78 16.09

2010 23.47 15.26

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Key Ratios at a glanceRatios ICICI

BANK(2011)AXIS BANK(2011)

ICICI BANK(2010)

AXIS BANK(2010)

ROE 6.4% 5.1% 2.7% 2.1%

PE Ratio 19.78 16.09 23.47 15.26

CASA Ratio 45% 41% 41% 46%

NPA Ratio 0.94% 0.26% 1.86% 0.36%

Capital Adequacy ratio

13.11% 17.42% 29.72% 36.5%

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Conclusions

Based on the financial assessment of key indicators of banks..ICICI Bank Ltd is leading ahead of Axis Bank.

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Balance sheet

ICICI Bank Annual Report FY2011.pdf Page-80

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Profit & Loss account

ICICI Bank Annual Report FY2011.pdfPage 81

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Cash flow statement

ICICI Bank Annual Report FY2011.pdfPage 82

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Thank you!!!

ICICI bank Ltd.