PROJECT REPORT

ON
FINANCIAL ANALYSIS OF ICICI BANK

Financial Analysis of ICICI Bank Ltd

SUBMITTED BY

SUBMITTED TO:

Preface

The importance of management is being increasingly realized in industrial and

non industrial organizations, both in india and abroad. To cater to the needs of
these gaint business corporations several institutations are performing the
remarkable job of imparting management education.
To provide the students an
opportunity to see the management in real action and get adequate exposure to
all its processes for composite result . summer training has been made an
compulsory curriculam of BBA programme.
Every students has to undergone
summer training in same business organization to have a practrical exposure of
marketing,finance,production and

CONTENT
OBJECTIVES
RESEARCH METHODOLGY
RESEARCH DESIGN
PRIMARY DATA
SECONDARY DATA
COMPANY PROFILE
PRODUCT POLICIES
PRODUCT PORTFOLIO
ADVISOR RECRUITMENT
METHODOLOGY
ADVISOR
SWOT ANALYSIS

USED

TO

RECRUIT

 FUTURE

GROWTH

PROSPECTS

OF

COMPANY
COMPETITIVE ANALYSIS WITH HDFCSTANDARD LIFE
RECOMMENDATONS
CONCLUSION
BIBLOGRAPHY

COMPANY PROFILE

HISTORY OF ICICI BANK

To understand about this big bank, we need to
understand how it became so big a force to reckon
with.

ICICI

(Industrial

Credit

Investment

Corporation of India) promoted the ICICI bank in

1994 with its stake reducing to 46% after the IPO in
1998. ICICI is a well-known name in India along
with IDBI and was formed in 1955 at the initiative of
the World Bank, Indian Government and Indian
Industries. Both of these institutions have an
exceptional brand-image and one of the highest
possible ratings from CRISIL and other rating
organizations.

ICICI

can

be

considered

an

oligopolistic corporation along with IDBI (please

M2M me, if you want to discuss this!). ICIC listed in

NYSE in 2000. In 2001 it underwent a tight marriage

with Bank of Madura in a stock-only amalgamation.
This was a tough marriage and I guess they are still
suffering

from

this

hiccup,

which

kind

of

substantiates their mediocre performance today, in

my perspective. This and the merger with the ICICI
Corporation have caused some management strain
and some tough merger time. I could only wish they
come over this and serve the customers in a better
manner.

Introduction
ICICI Bank is India's second-largest bank, with total
assets of about Rs.1,676.59 billion on 31 March 2005.
ICICI Bank began its life 1994 as a wholly-owned
subsidiary of ICICI Limited, an Indian financial
institution, whose shareholding in the bank was
reduced to 46 per cent through a public offering of
shares in India in 1997-98, an equity offering in the
form of ADRs listed on the NYSE in fiscal 19992000, the ICICI Bank's acquisition of Bank of
Madura in fiscal 2000-01, and secondary market sales
by ICICI to institutional investors in fiscal 2001 and
fiscal 2002.
In 2002, ICICI was merged with ICICI Bank to
combine the wholesale and retail operations of both
organisation into a single entity. (ICICI, or the

Industrial Credit and Investment Corporation of India

was formed in 1955 as a development financial
institution at the initiative of the World Bank, the
Indian government and representatives of Indian
industry.)
ICICI Bank's shares are listed on the Bombay Stock
Exchange and the National Stock Exchange of India
Limited in India and its ADRs are listed on the New
York Stock Exchange.

Business
ICICI Bank offers a range of banking products and
financial services to corporate and retail customers
through several delivery channels and specialised
subsidiaries and affiliates. The areas include:
investment banking, life and non-life insurance,
venture capital and asset management.
ICICI Bank set up its international banking group in
fiscal 2002 to cater to clients' cross-border needs. It
currently has subsidiaries in the UK, Canada and
Russia, branches in Singapore and Bahrain, and
representative offices in the US, China, UAE,
Bangladesh and South Africa.
ICICI Bank, which accepts deposits under various
savings and fixed schemes, offers a range of loans for
various purposes, including housing, cars and 2-

wheelers, commercial vehicles, farm equipment,

medical

equipment,

office

equipment

and

construction equipment.
The bank also has a popular credit card business.
Location
ICICI Bank has a network of about 573 branches and
extension counters and over 2,000 ATMs.

Board Members
Mr. K.V. Kamath, Chairman
Mr. R. Athappan, Director
Mr. B.V. Bhargava, Director
Mr. Dileep Choksi, Director
Mr. James F Dowd, Director
Ms. Kalpana Morparia, Vice - Chairperson
Ms. Vishakha Mulye, Executive Director
Mr. S. Mukherji, Director
Mr. Chandran Ratnaswami, Director
Mr. M.K. Sharma, Director
Mr. H.N. Sinor, Director
Mr. V. Vaidyanathan, Director

Mr. Sandeep Bakhshi, Managing Director & CEO

Committees
Audit Committee
Mr. S. Mukherji, Chairman
Mr. Dileep Choksi, Director
Mr. James F Dowd, Director
Mr. H.N. Sinor, Director
Investment Committee
Mr. Chandran Ratnaswami, Chairman
Ms. Kalpana Morparia, Director
Mr. Sandeep Bakhshi,, Managing Director & CEO
Mr. S. Gopalakrishnan, Head Investments
Mr. Rakesh Jain, Head-Finance & Accounts
Mr. Liyaquat Khan, Appointed Actuary

Board Governance Committee

Ms. Kalpana Morparia, Chairperson
Mr. Chandran Ratnaswami, Director
Mr. H. N. Sinor, Director

Channels
The company follows multichannel approach to tap
customers. Depending on the
effectiveness, the following
channels are used for sales,
service and other allied
activities. The main objective of
these channels is :

To create value beyond the

product.
To convert customer to clients.
To spread awareness about the
company and its products.

Financial Highlights
Financial Year
No. of policies sold
No. of claims
handled
No. of employees
No. of offices

2006-07

2005-06
Figures in nos.
3,136,393
1,461,039
642,777
243,951
4,770
220

Gross Written

30,035

2,283
154
Rs. in Million
15,920

Premium
Net Written

14, 508

7,339

Premium
Net Earned Premium
Profit before Tax

10,667
801

5,277
545

Profit after Tax

Share Capital
Net Worth
Investments
Total asset

684
3,357
9,427
17,105
29,540

Claim Ratio
Commission Ratio

76%
(13%)

503
2,450
3,729
9,065
16,391
Ratios in %
74%
(17%)

Expense Ratio
Combined Ratio
Previous Year

34%
97%

41%
97%

Annual Report
2006-07
2005-06
2004-05
2003-04
2002-03
Awards and Recognition
The Awards and Recognition conferred upon us are a
reflection of the core values which drive our business
decisions. Click on read more for more information
about a particular award.

General Insurance Company of the

Year
11th Asia Insurance Industry Awards
2007, Singapore

ICICI Lombard becomes the first Indian

insurance company to win this
prestigious award. - Read More

NDTV Profit Business Leadership Award

2007
Conferred as leaders in General Insurance
Category at the NDTV Profit Business
Leadership Awards 2007 held at Delhi. These
Awards honour business excellence. They are
aimed at recognizing companies that have
shown exceptional ability across industries and
have nurtured excellence.
- Read More

First in Customer Responsiveness

Economic Times Avaya
GlobalConnect Customer
Responsiveness Award 2006
ICICI Lombard bagged the
maximum votes from customers in
2006, making it the most Customer
Responsive Company in the
Insurance sector.
- Read More

Brand Leadership Award 16th Asia

Brand Congress, Taj Lands End, Mumbai
Awarded the Brand Leadership Award at the
16th Asia Brand Congress held at Taj Lands
End, Mumbai from 26-27th September, 2007.

- Read More

Best Housing Insurance 2006

Awarded the Best Housing Insurance
in the Smart Living Awards by 360
degrees, a Times of India Group
subsidiary, in Nov 2006. - Read More

Excellence in Financial Reporting

Awarded the Gold Shield for "Excellence in Financial
Reporting" by the ICAI (Institute of Chartered
Accountants of India) for the year ended March 31,
2006.

iAAA rating by ICRA

Assigned the iAAA rating by ICRA indicating highest
claims paying ability and a fundamentally strong
position - Read More

PERFORMANCE

APPRAISAL

SYSTEM

Performance Appraisal is a formal, structured

system of measuring and evaluating an employees
job relative behaviours and outcomes to discover
how

and

why

the

employee

is

presently

performing on the job and how the employee can

perform more effectively in the future so that the
employee, organization, and society all benefit

INTRODUCTION
Any system of determining how well an individual
employee has performed during a period of time,
frequently used as a basis for determining merit
increases.
A systematic review of a persons work and
achievements over a recent period, usually leading to
plans for the future.
One phase of the annual performance management
cycle is performance appraisal, the process of
reviewing employee performance, documenting the
review, and delivering the review verbally in a faceto-face meeting.

The identification, measurement and management

of human performance in organizations.
A MODEL OF PERFORMANCE APPRAISAL

Identification

Measurement

Management

COMMUNICATING WITH EMPLOYEES

Part 1: Listening, Commenting, and Questioning

Listening:
This

is

the

building

block

for

successful

communication, yet most of us are rather poor

listeners. Instead of listening, we start thinking of
whether or not we agree with what the other person
has said, or we being thinking of our own response.
Thankfully, listening is a skill that can be learned and
developed.
Some pointers include:
Dont interrupt unless to seek clarification.

 Dont continually glance at your watch or the

clock.
Dont judge or criticize.
Do make eye contact and stay interested in what
the employee is saying.
Do watch the employees facial expressions and
body movements for hidden messages.
Do summarize by saying what you think the
employee is feeling (empathy is the key to good
listening).
Commenting:
This is a necessary part of all discussions because is
sustains a comfortable, related flow of conversations.
Several effective types of comments include:
Restatement (of what the employee said).
Refocus from the negative to the positive.
Reflect feelings (demonstrates empathy).

 Redirect a stalled conversation.

Rethink a situation (e.g., when an employee tries to
pass the buck).

Questioning:
This is the best way to get information from an
employee. Different types of questions will yield
different responses. Some examples of techniques
include:
Restrictive or closed-ended questions.
Open-ended questions.
Hypothetical or open-ended problem questions.
Compare and contrast questions.
Questions that involve a choice in/of responses.
Part 2: Praising and Criticizing Performance

Praising Performance:
Giving

praise

frequently,

confidently,

and

constructively is a skill you can learn. Complimenting

good performance is as important as constructively
criticizing poor performance. Compliments give
employees

positive

reinforcement

which

encourages them to repeat the action that earned

praise. When giving praise, remember to:
Be specific.
Be direct.
Do it often.
Say if first (not in response to their praise of you).
Give it publicly whenever possible.
Praise the behavior rather than the person.

Criticizing Performance:
Be constructive, not destructive. When giving
constructive criticism, remember to:
Be specific.
Offer suggestions about what to do instead.
Encourage the employee. Be willing to work with
the employee to improve the situation.
Give your support, but remain firm.
Avoid name-calling and inflammatory language.
Base any review of unsatisfactory performance on
facts, not opinions or 3rd party input.
Part 3: Handling Defensiveness
While a certain amount of defensiveness is inevitable,
much of it can be avoided by bearing a few things in
mind:

 Attack the problem, not the employee (use

examples of behavior exhibited in the workplace,
rather than attacking a personality trait or the like).
Choose your words carefully (use positive words
like development opportunity and growth
opportunity, rather than such negative words as
failure or inadequacy).
Keep

your

cool

and

avoid

any

form

of

counterattack. Redirect the conversation, if

possible.

Performance Management in ICICI BANK

Performance Appraisal is a formal, structured system
of measuring and evaluating an employees job
relative behaviours and outcomes to discover how
and why the employee is presently performing on the
job and how the employee can perform more
effectively in the future so that the employee,
organization, and society all benefit.
Objectives :
1. To effect promotions based on competence and
performance
2. To confirm the services of probationary
employee

upon

their

completing

the

probationary period satisfactorily.

3. To assess the training and development needs of
employees.
4. To decide upon pay rise where regular pay scale
have not been fixed.

5. To let the employees know where they stand

insofar as their performance is concerned and to
assist them with constructive criticism and
guidance for the purpose of their development.
6. To improve communication.
7. It can be used to determine whether HR
programems have been effective.
Propose of Performance Assessment :
1. Development uses :
Identification of individual needs.
Performance feedback.
Determining Transfer and Job assignments.
2. Administrative Uses / Decisions :
Salary
Promotion.
Retention or Termination
Lay-offs

3. Organization Maintenance / Objectives :

HR Planning.
Determining Organization training needs.
Evaluation of HR systems.
4. Documentation :
Criteria for validation of research.
Documentation for HR decisions.
Helping to meet legal requirement.
Process :
Objective of Performance Appraisal.
Establish Job Expectations.
Design an appraisal Programme
Appraise Performance
Performance Interview
Use appraisal Data for Appropriate Purpose

Whose Performance Should be Rated :

Individual
Group
Two conditions necessitate a group level appraisal
Group Cohesiveness and Difficulty in identifying
individual performance.
Who Are Raters? :
1. Immediate Supervisor
2. Subordinates
3. Peers
4. Clients
5. 360 Degree system of appraisal
6. Rating Committes
7. Self Appraisal
Problem of Rating :

PA are subject to a wide variety of inaccuracies and

biases referred to as rating errors.
Leniency / Severity
Central Tendency
Halo Error
Rater Effect
Primacy and Recency Effects
Perceptual Set
Status Effect
What should be Rated? :
1. Quality
2. Quantity
3. Timelines
4. Cost Effectiveness
5. Need for Supervision
6. Interpersonal Impact
Method of Performance Appraisal:

Past Oriented Methods :

1. Rating Scales : consists of several numerical
scales, each representing a job-related performance
criterion such as dependability, initiative, output,
attendance, attitude, co-operation, and like.
2. Checklist : A checklist of statements on the traits
of the employees and his or her job is prepared in
two columns viz a yes column and a no
column.
3. Forced Choice Method : The rater is simply
expected to select the statement that describe the
rate.
4. Forced distribution Method : The method
operates under assumption that the employee
performance level conforms to a normal statistical
distribution.
5. Critical Incident Method : Incidents are recorded
by the superiors as and when they occur.

6. Field Review Method : This is an appraisal by

someone outside the assessees own department,
usually someone from the corporate office or the
HR department.
7. Confidential Records : The approach has 14
items : Attendance, self-expression, ability to work
with others, leadership, initiative, technical ability,
ability to understand new material, ability to
reason, originality, area of interest, judgement
integrity, responsibility, and defect.
8. Easy Method
9. Paired Comparison Method
Future Oriented Method :
1. Management by Objective:
2. Psychological Appraisals.
3. Assessment centers.
4. 360- Degree feedback
Challenges of Performance Appraisal

 Create a culture of excellence that inspires every

employee to improve and lend himself or herself to
be assessed.
Align organizational objectives to individual
aspirations.
Clear growth paths for talented individuals.
Provide new challenges to rejuvenate careers that
have reached the plateau stage.
Forge a partnership with people for managing their
careers.
Empower employees to make decisions without
fear of failing.
Embed teamwork in all operational processes.

PERFORMANCE PLANNING FOR ROLE

CLARITY,
ACCOUNTABILITY AND EFFECTIVENESS

Performance planning fixes accountability, sets

role boundaries, help better time management and
requires time at least once a year.
It helps manager to understand and analyze his
contributions and increase his responsibility for
continuous performance.
Performance planning implies systematic outlining
of the activities the manager is expected to
undertake during a specified period so that he is a

able to make his best contribution to the

developmental and organizational outcomes.
Performance

planning

indicates

the

relative

emphasis to be placed by the individual on

different activities he undertakes during the year.
Whose performance is to be planned
Managers seems to imagine too many uncertainties
facing the organization and feeling as though each
one of them is going to affect the role he as an
individual is likely to perform. Hence they argue
that performance cannot be planned. A good
escape mechanism.
Individual plans should be the actions expected to
be undertaken by the individual manager with the
hope of achieving the organizational goals.
Organizations should set their goals and plan their
strategies. Departments and other sub-systems

should delineate their roles and plan their

contributions.
Sequence of Individual plan organization->
Department-> Individual
Advantage : One individual doesnt has to wait of
others.

Planning Individual
Performance
Annual Performance Appraisal exercises provide
good opportunities or performance planning.
Ways to plan individual performance.
Task analysis and / or Activity analysis.
Key Performance area.
Key Result Areas.
Task and Target Identification.
Activity Plans / Action Plus
Goal Setting Exercises.
Key Performance area approach is the best suited
for the purpose of planning as it emphasizes
individual performance and also gives scope for
quantification.

KPAs and Performance Planning

There is no well tested our technology of identifying
KPA. But can be identified by answering following
questions :
Do the KPAs and targets emphasise/indicate what
the manager is expected to do by himself?
Together do they cover a large part of his job and
include all significant contribution expected from
his role.
Do they indicate the priority areas of work for the
appraisee during the year?
If all KPAs are well done can the appraisee to be
labelled as a good performer?
Are the targets set challenging and stretch the
capabilities of the appraisee moderately rather than
being routine?
Are they comprehensive?
Do they specify the standards of performance
expected from the appraisee?

 Do they take into consideration realistically the

condition under which the appraisee is expected to
function during the year?
Are they satisfying both to the appraisee and
appraise
Has the adequate time be spent on the process of
identifying KPAs and gaining role clarity?
The need for Clarity of Roles and Functions in
Modern Organizations
for growth dynamism is important.
Dynamic organizations are continuously in the
process of change.
Change have impact on the roles.
Thus in order to help people to develop various
capabilities, a clear understanding of the different
functions associated with their roles and the
capability
understood.

requirements

need

to

be

clearly

PERFORMANCE ANALYSIS
If subjectivity in appraisals has to be reduced the
appraiser should not only assess the level of
performance achieved by the appraisee but also
understand and assess the condition under which
the appraisee has accomplished whatever he has
accomplished.
Performance analysis is considered as the heart of
the appraisal system.
Objectives :
Identification of facilitating factors.
Identification of hindering factors.
Identification of factors about something can be
done.
Identifying developmental needs for better
performance on critical functions associated with
the present roles.

 To gain better understanding about the aprpaisee,

his roles requirements and situation in which he
is working and also to share with him the
expectations and understanding of the appraiser
so that the communication between each of them
is increased.

ACCURACY OF PERFORMANCE APPRAISAL

The accuracy of Performance Appraisals can be
viewed as a function :
Raters motivation to appraise accurately.
Job-relevance of the rating-standards used by
the rater
Raters ability to evaluate rate job behaviour
Reducing Rater biases :
One way of reducing these by making the
assessors more and more aware of the
dynamic factors affecting their perceptions
and evaluations of their subordinates. This
can be done through :
i. Rater Timing.
ii. Rater participation in the construction
of rating scales.
iii. The use of some statistical methods.

PERFORMANCE COUNSELING
Performance Counseling is often misunderstood.
It is wrongly interpreted as a process of correcting
or controlling the employee behavior.
It is defined as the help provided by a manager to
his subordinate in analyzing their performance and
other jobs behaviors in order to increase their jobs
effectiveness.
It is a dyadic process.
Objectives :
1. Helping to realize potential as a manager.
2. Helping to understand weakness and strengths.
3. Providing an opportunity to acquire more
insight into own behavior and analyse the
dynamics of such behavior.
4. Help to have better understanding of the
environment.

5. Increasing

personal

and

inter-personal

effectiveness by giving feedback.

6. Encouraging to generate alternatives for dealing
with various problems.
7. Encouraging to generate alternatives for dealing
with various problems.
8. Providing empathic atmosphere.
9. Help to develop various action plans for further
improvement.
Conditions for effective counselling :
1. General climate of Openness and Mutually
2. General Helpful and Empathic Attitude of
Management.
3. Sense of uninhabited participation.
4. Dialogic Relationship in Goal Setting and
Performance Review.
5. Focus on Work - oriented Behavior.
6. Focus on work related Problems and Difficulties

7. Avoidance of discussion of salary and other

Rewards.
The Process of Counseling :
1. Communication : Interpersonal communication is
the basis of performance review in which both the
employee and his reporting officer are involved.
The climate should be congenial so that employee
is in receptive mood.
Listening : Listening is the first effective step in
communication.
Asking question and responding.
Feedback : It is an important input for increasing
self awareness
2. Influencing : Influencing would mean making an
impact on the person in relationship. Such an
impact need not necessarily be of restrictive type.

 Increasing authority of person : If a person is

praised or recognized he feels encouraged to
make

more

initiative

in

exploring

new

directions.
Positive Reinforcement : Influencing would
involve

providing

encouragement

and

reinforcing success so that the person takes

more initiative and is able to experiment with
new ideas.
Identification : One major influence which helps
an employee to develop is the opportunity for
him to identify with individuals having more
experience, skill and influence.

3. Helping : Counselling is essentially helping.

Concern and Empathy : Without managers
concern for his employee, effective helping
cannot be provided in the counselling session.
Such concern is shown when the counsellor is
able to feel for his subordinate and is able to
empathize with him.
Mutually of Relationship : Counselling should
not be regarded as merely giving help. It is also
receiving help on Various aspects.
Identifying Developmental Needs.
USING PERFORMANCE APPRAISAL DATA
Effectiveness of performance appraisal system
depends to a great degree on how well the data
generated by the system are utilized for variety of

purposes and to what extent the employees see the

date being utilized.
Developmental Decision :
The path for development on the job is already carved
out for employees through key performance areas,
behavioural dimensions, self- appraisal, performance
analysis and counselling.
Identification of Training Needs :
The following processes may be used by the HRD
department to identify training needs and create
learning opportunity for employees :
i. Collect

appraisal

ratings

of

all

the

employees.
ii. Categories the employees into role related or
function related categories.
iii. Identify common performance areas for each
category of employees.

iv. Tabulate the final appraisal rating by the

appraiser against each performance area for
all the employees having that performance
area.

56

v. The trends in rating are the indicative of the

areas that need attention.
vi. On the basis of such analysis, areas where a
large group of employees need to be trained
could be identified.
Job ration is another effective way of developing
employee capability. Some organization use job
rotation as a mechanism of identifying and
developing the potential of employee.
Potential development and career development
related decisions can be taken by the appraise
himself during appraisal discussion.

 Inputs for development needs are given by the

appraise and appraisers through the performance
appraisal forms.
Administrative decision :
The administrative decisions like salary increased and
other form of rewards for good performance, transfer
and placement decisions are taken by the top
management or the personnel department. Largely
these decision are based on performance and
performance appraisals play a significant role in this.
Performance Rewards :
Performance rewarding is a very controversial issue
in organizational life because there are no easy ways
of quantifying performance for reward purposes.
Performance rewarding is involved only when an
employee is rewarded for high performance in his job
over a period of time and this should be differentiated
from other forms of rewards and awards.

Reward mechanism :
i. Salary increase
ii. Annual Performance awards
iii. Outstanding Performance awards
iv.Promotions
v. Chang of responsibilities and status.
vi.Sponsorship to conferences, tours and visit to
other countries
vii. Appreciation Letters and Certificates
viii. Transfer
ix.Advanced

Training

and

Development

opportunities
x. Announcement in newsletter, journals, etc.
Problems Encountered by Management :
i. Quantification of Performance
ii. Comparison of performance with different types
of jobs.

iii. Differentiating

between

contribution

of

abilities and efforts to high performance, and

giving weights to the same.
iv.Demoralization among employees who are not
rewarded.
v. Isolating individual employees contribution
from group contribution.
vi.Subjectivity in performance assessment.
Transfer and Placement Decisions :
Performance appraisal inputs could be used for
transfer and placement decisions. A transfer decision
may be taken essentially to ensure better matching of
the person with the job. An employee who is not
performing well in particular role because of
mismatch could be helped by identifying suited job
for him in the organization where he could do better.
Thus performance appraisal data can serve as input
for a variety of decisions that may contribute to

organizational health and productivity through human

resource development

RESEARCH DESIGN
Title of the study:
The study of Performance Management system is to
give a better way to approach performance evaluation
and development. The process helps the manager to
create a work environment that will help employees
to succeed. This is also helpful to improve
productivity, motivation and morale by handling
performance development in new ways.
Statement of the Problem:
This study attempts to analyze & determine the
Employees

Satisfaction

towards

the

current

Performance Appraisal system with respect to ICICI

BANKS

employees

from

various

different

departments and to save recommendations to make it

make it more effective.
Objective of the Study

The objective of the study are as follows:

To understand the current Appraisal system prevailing
in the Company.
To calculate the employees satisfaction towards the
current Appraisal system and
And give recommendations to make it more effective
and reliable.
Scope of the Study.
The scope of this study is to evaluate the response of
the employees towards the current Appraisal System
in the organization. This study was limited to ICICI
BANK only.

Limitations of the Study

The study is confined to ICICI BANK`
employees only.
The survey was conducted only with few of the
employees thus it cannot be generalized.
The information collected in this project is highly
time bound hence, it may vary in the course of
time .
The survey was conducted

only for 50

employees.
Research methodology
The data serves as the basic raw material for analysis.
Without an analysis of factual data no specific
inferences can be drawn on the questions under the
study. Inferences based on imagination or guess work
cannot provide answer to the question. The

relevance , adequacy and reliability of the data

determines the quality of the findings of the study
For this purpose of study, data was collected from
two sources
1. Primary data
2. Secondary data
Primary data has been collected through a convenient
questionnaire method produced to 50 employees who
are working with ICICI BANK currently. The
response is treated for the analysis, conclusion and
the interpretation of the findings made.
Secondary data has been collected through company
broachers, annual reports, business magazines and
newspapers, text books and the internet.
Tool of Analysis:
The data collected has been classified and tabulated
using the frequency distribution tables and they have

been analysed based on various statistical tools like

percentage.
The analysis has been represented by diagram and
graphs which has helped in better interpretation of
data.

Sample size:
The sample size of 50 Employees was taken.
Sampling technique:
Convenient sampling was done for the study.
Field work:
The research work has involved a field work of 10
days where I have presented questionnaire to the
employees working with various departments at
various different places. The responses were also
collected through interviews and daily interactions
with the employees to get some useful data for the
project study.

DATA ANALYSIS AND INTERPRETATION

GRAPH 1:
CLASSIFICTION OF EMPLOYEES ON THE
BASIS OF THEIR WORKING WITH THE
BANK

Analysis:

From the above Graph we can interpret that % of

employees who are working from more than 5 years
is 42% followed by 1-3 years with 46%.
Inference:
The employees working with this BANK are really
committed towards their job.

GRAPH 2:
CLASSIFICATION OF EMPLOYEES ON THE
BASIS OF THEIR FREQUENCY OF
APPRAISAL

Analysis:
From the above graph we can analyze that 68% of
employees and appraised at quaterly basis so as to
maintain good performance through out the year
followed by 32% who are appraised on annually
basis.

Inferences:
Majority of the employees are appraised on quarterly
basis. The criteria should be same for everybody.

GRAPH 3:
CLASSIFICATTION OF EMPLOYEES ON THE
BASIS OF THEIR APPRAISEE

Analysis:
Majority of the appraising work is done by the
immediate superiors with 75% and rest 25 % is done
by the rating committee.
Inferences:
The rating should do the major part of the appraising
job so as to avoid biasness. Some of the employees
feel that the boss may be bias and they feel that the
rating committee should be assigned the major part of
the appraising job and the names of the rating
committee members should not be reveled out before
the appraisal .

GRAPH 4:
CLASSIFICATION OF EMPLOYEES ON THE
BASIS OF THEIR LAST APPRAISAL

Analysis:

The majority of employees have been appraised

recently i.e 50%. The rest have been appraised the
last quarter i.e 44% and 6% of employees have never
been appraised.
Inferences:
The satisfaction level will be high as majority have
been appraised recently and in the last quarter.

GRAPH 5:
CLASSIFICATION OF EMPLOYEES ON THE
BASIS

OF

APPRAISING

WHO

SHOULD

DO

THE

Analysis:
56% of the employees feel that their immediate
superiors should do the appraising whereas 25% of
the employees say that they should have a rating
committee. 14% feel that their should be 360degree
feedback system for the appraisal where as 5 % feel
that client should do their appraising

Inferences:
Majority says that the appraising should be done by
the bosses as they know that their boss is aware of
their each and every activity happening and only he
could be the best judge for them. It is very true that
the bosses feedback can be biased so in that case a
rating committee should also be there so that the
biasness can be avoided.

GRAPH 6:
CLASSIFICATION OF EMPLOYEES ON THE
BASIS OF HOW THE APPRAISAL HELPED
THEM

a. Promotion and Salary raise

b. Developing a plan for correcting any deficiencies
the appraisal might have unearthed
c. Career Planning
d. Identifying your strengths and weaknesses
Analysis:
From the above graph it can be seen that 50% of the
employees got a promotion or a salary raise whereas
24% were helped to identified their strengths.
Inferences:
As we can see that the majority of the employees
have been promoted or got a salary hike so they will

defiantly be happy. The appraisal system has helped

everyone, either to identify their strengths or be it
career planning. This shows the relevance of the
appraisal system in the organizations.

GRAPH 7:
CLASIIFICATION OF EMPLOYEES ON THE
BASIS

OF

THEIR

APPRAISAL SYSTEM

RATING

TO

THEIR

Analysis:
44% of the employees feel that their appraisal system
is very good followed by 30% who feel that it is just
good.20% of the employees feel that the appraisal
system is average and only 6% feel that it is excellent
Inferences:
The rating given by the employees is in the favor of
the appraisal system. The employees seem to be
happy with their appraisal system as we have no one
saying that it is poor.

GRAPH 8:
GRAPH SHOWING EMPLOYEES OPINION
ON THE USEFULNESS OF THE APPRAISAL
FEEDBACK

Analysis:

46% of the employee feel that appraisal feedback is

useful to an extent and 46 % feel that it is very useful.
Only 4 % feel that it is not at all useful
Inferences:
Majority of the employees feel that the appraisal
feedback is important as it helps them to identify their
strengths and weakness and also give them the feel of
existence in the company.

GRAPH 9:
GRAPH

SHOWING

THE

OPENION ABOUT THE

OBJECTIVE

EMPLOYEES

SYSTEM

BEING

Analysis:
from the above graph we can analyze that 52% of the
employees feel that the Appraisal has any objective
followed by 38 % neither agree not disagree whereas
only 10 % of the employees strongly agree with this
statement.
Inferences:
Appraisal system is very objective.

FINDINGS AND CONCLUSION

After going through all the data collected and after
through analysis I have come out with the following
findings:
1. The employees have clear goal definition and
clarity of work which is very important for an
employee to know as an individual also and as a
part of the company also.
2. The employees feel that the decision of appraisal
to be done by the immediate superior is good as
he knows how much the subordinate is efficient
and hard working.
3. The majority of employees are happy with the
salary raise which they get at every appraisal so
that means they are satisfied financially.

4. The employees feel that the current rating

committee is good.
5. Employees fell that if they have a good boss then
the appraisal will defiantly be good, so it depends
all on the boss.
6. Employees feel that the self scoring system is
good but superiors rating is equally important.
7. Employees strongly agree that the appraisal
system really helps them to identify their
strengths and weakness which in return help
them to increase their performance.
8. Employees feel that the Appraisal system should
be different at every level.
9. In employees opinion linking KRA with the
appraisal system is good.
10.

in employees opinion the appraisal system

help them to achieve targets on time

11.

Employees agree that with the help of

appraisal system their roles and responsibilities

are clearly defined.

12.

Appraisal system is good as it has systematic

approach and achievement based evaluation.

13.

Appraisal system is good as it has proper

Target setting.
14.

Employees feel that the system is good

because it has profile setting, work disposal and

contribution towards companys objective.
15.

In employees opinion the appraisal done

after every quarter is a good concept as the

employee can rectify his mistake in short period
of time and can work correctly to achieve his
target.
16.

Employees feel that the appraisal system

should be more transparent.

17.

Employees say that they should be part of

the companys profit(PLI).

RECOMMENDATIONS
After going through the interviews with employees of
various departments and also after the through
analysis of the data collected I can say that the
appraisal which is currently prevailing in the
organization is good and is liked by the employees.
The majority of the employees are happy with the
current appraisal system but still I have come up with
some recommendations to make it more effective and
efficient.
1. Focus should be on employees satisfaction by
understanding ground level feedback. Through
the ground level feedback he will hear the voice
of the masses and the company will be able to
achieve over all employees satisfaction.
2. Rating committee should keep on changing and
the names of the members of the rating

committee should be kept as a secret. This is to

avoid

biasness

and

gaining

trust

of

the

employees.
3. One should be appraised by the external
customer in case of support and they can have an
internal employee also in the panel. This is to get
the actual feedback for the employees working in
the support and to get the knowledge about both
the prospective.
4. Appraisal should be done on proper gap.
5. More stress should be given on the identification
of improvement areas for the betterment and skill
enhancement of the employees.
6. Appraise should also advice about future career
planning of his staff because the appraisal aims at
the betterment of the staff. They themselves can
tell what is required by them, what are their
targets and goals in life and the appraises should
give them ways to achieve them so that they are
satisfied.

7. More recognitions should be given for team

based achievements as team as a whole can take
up task which an individual can not take and if
they are recognized well they can prove very
beneficial.
8. HR should start grievance handling system on
continuous basis.

BIBLIOGRAPHY / SOURCES
BOOK
1. ESSENTIALS OF HUMAN RESOURCE
MANAGEMENT AND

INDUSTRIAL

RELATION.BY P.SUBBA RAO

AUTHORS1. C.R. KOTHARI, RESEARCH
METHODOLOGY.
2. C.B. MAMORIA, HUMAN RESOURCE
MANAGEMENT.
OTHER SOURCE1. www. ICICI com
2. www. ICICI.org.com.