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

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

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

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

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.

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 Transformation the 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 ups Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc each one of these initiatives having a huge potential for growth.

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 State Bank 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 (August2009) Shri Om Prakash Bhatt declared as one of the "25 most valuable Indians" by the week magazine for 2009 (published in august-2009 issue) The Bank was voted, for the third year in a row, as the Most Preferred Housing Loan and 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 Bank by Outlook Money Awards, 2008. The Bank was awarded Readers Digest Pegasus Corporate Social Responsibility Award 2007 in recognition of its contribution towards Rural Community Development.

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 12 mths 12 mths 12 mths Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 526.3 526.3 0 0 27,117.79 0 27,644.09 380,046.06 30,641.24 410,687.30 55,538.17 493,869.56 Mar '06 12 mths Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets 21,652.70 22,907.30 261,641.53 162,534.24 7,424.84 4,751.73 2,673.11 79.82 22,380.84 526.3 526.3 0 0 30,772.26 0 31,298.56 435,521.0 9 39,703.34 475,224.4 3 60,042.26 566,565.2 5 Mar '07 12 mths 29,076.43 22,892.27 337,336.4 9 149,148.8 8 8,061.92 5,385.01 2,676.91 141.95 25,292.31 631.47 631.47 0 0 48,401.19 0 49,032.66 537,403.9 4 51,727.41 589,131.3 5 83,362.30 721,526.3 1 Mar '08 12 mths 51,534.62 15,931.72 416,768.2 0 189,501.2 7 8,988.35 5,849.13 3,139.22 234.26 44,417.03

Mar '10 12 mths

Mar '11 12 mths

634.88 634.88 0 0 57,312.82 0 57,947.70 742,073.1 3 53,713.68 795,786.8 1 110,697.5 7 964,432.0 8 Mar '09 12 mths 55,546.17 48,857.63 542,503.2 0 275,953.9 6 10,403.06 6,828.65 3,574.41 263.44 37,733.27

634.88 634.88 0 0 65,314.32 0 65,949.20 804,116.2 3 103,011.6 0 907,127.8 3 80,336.70 1,053,413 .73 Mar '10 12 mths 61,290.87 34,892.98 631,914.1 5 285,790.0 7 11,831.63 7,713.90 4,117.73 295.18 35,112.76
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Total Assets Contingent Liabilities Bills for collection Book Value (Rs)

493,869.54 191,819.34 57,618.44 525.25

566,565.2 4 259,536.5 7 70,418.15 594.69

721,526.3 2 736,087.5 9 93,652.89 776.48

964,432.0 8 614,603.4 7 152,964.0 6 912.73

1,053,413 .74 429,917.3 7 166,449.0 4 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 Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses 12 mths 12 mths 12 mths

35,794.93 39,491.03 48,950.31 63,788.43 7,388.69 7,446.76 9,398.43 12,691.35 43,183.62 46,937.79 58,348.74 76,479.78 20,159.29 23,436.82 31,929.08 42,915.29 8,123.04 7,932.58 7,785.87 9,747.31 1,853.32 3,251.14 4,165.94 5,122.06 729.13 602.39 679.98 763.14 7,912.15 7,173.55 7,058.75 8,810.75 0 0 0 0 11,872.89 13,251.78 14,609.55 18,123.66 6,744.75 5,707.88 5,080.99 6,319.60 38,776.93 42,396.48 51,619.62 67,358.55 Mar '06 12 mths Mar '07 12 mths 4,541.31 0 0.34 4,541.65 0 736.82 125.22 Mar '08 12 mths 6,729.12 0 0.34 6,729.46 0 1,357.66 165.87 Mar '09 12 mths 9,121.23 0 0.34 9,121.57 0 1,841.15 248.03
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Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax

4,406.67 0 0.34 4,407.01 0 736.82 103.34

Per share data (annualised) Earning Per Share (Rs) 83.73 86.29 106.56 Equity Dividend (%) 140 140 215 Book Value (Rs) 525.25 594.69 776.48 Appropriations Transfer to Statutory Reserves 3,566.51 3,682.15 5,205.69 Transfer to Other Reserves 0 -2.88 -0.1 Proposed Dividend/Transfer to 840.16 862.04 1,523.53 Govt Balance c/f to Balance Sheet 0.34 0.34 0.34 Total 4,407.01 4,541.65 6,729.46 Cash Flow Statement For the year ended March 2009, Mar 10, Mar 11. Mar '09 Mar '10

143.67 290 912.73 6,725.15 306.9 2,089.18 0.34 9,121.57 Mar '11

12 mths

12 mths

12 mths

Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from

10438.9 -856.87 -2798.01

14180.64 29479.73 -1651.93

13926.1 -1804.99 -1761.52

Financing 19371.12

5097.38

-3359.67

Activities Net (decrease)/increase In Cash and Cash 15716.24 Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 51968.69 67466.34 71478.62 104403.8 103110.02 96183.84 32925.18 -6926.18

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 as they 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 Assets Stock prepaid Expenses / Current Liabilities F.Y. 2008-09 6.15 F.Y. 2009-10- 5.74 F.Y. 2010-11 9.07 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. 2008-09 19.29 F.Y. 2009-10 - 19.50 F.Y. 2010-11 16.96 Interpretation: Banks operating profit is increasing as compared to previous year, it shows 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. 2008-09 11.65 F.Y. 2009-10 - 12.03 F.Y. 2010-11 10.54 Interpretation: As the net profit ratio is not increasing at a satisfied level, it would not ensure 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. 2008-09 10.96 F.Y. 2009-10 - 12.81 F.Y. 2010-11 12.19 Interpretation: As it shows that the ratio is decreasing as compared to previous year, it is 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. 2008-09 6.32 F.Y. 2009-10 - 7.20 F.Y. 2010-11 7.26 Interpretation: The fixed asset turnover ratio is increasing at a slow but steady rate. The management 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 : NPAT Preference 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 = (D SD)/S D - Sum of dividends over a period (usually 1 year) SD - Special, one time dividends S - Shares outstanding for the period F.Y. 2008-09 29.00 F.Y. 2009-10 30.00 F.Y. 2010-11 30.00 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. 2008-09 100.03 F.Y. 2009-10 95.02 F.Y. 2010-11 96.72 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. 2008-09 0.09 F.Y. 2009-10 0.09 F.Y. 2010-11 0.08 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. 2008-09 7.20 F.Y. 2009-10 7.26 F.Y. 2010-11 7.24 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. 2008-09 14.25 F.Y. 2009-10 13.39 F.Y. 2010-11 11.98 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. 2008-09 63.23 F.Y. 2009-10 61.40 F.Y. 2010-11 64.49 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. 2008-09 0.96 F.Y. 2009-10 1.08 F.Y. 2010-11 1.34

Interpretation: The net profit/ total funds is initially low but it increases continuously for next two year.

EARNING PER SHARE:

F.Y. 2008-09 78.88 F.Y. 2009-10 78.82 F.Y. 2010-11 76.80 Interpretation: The earning per share for 2008-09 to 2009-10 are nearby same but it decreases for 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 12 months Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 1,239.83 889.83 0 350 21,316.16 0 22,555.99 165,083.17 38,521.91 203,605.08 25,227.88 251,388.95 Mar '06 12 months 12 months 1,249.34 899.34 0 350 23,413.92 0 24,663.26 230,510.19 51,256.03 281,766.22 38,228.64 344,658.12 Mar '07 12 months 12 months

Mar '10 12 months

Mar '11 12 months 1,114.89 1,114.89 0 0 50,503.48 0 51,618.37 202,016.60 94,263.57 296,280.17 15,501.18 363,399.72 Mar '10 12 months

1,462.68 1,463.29 1,112.68 1,113.29 0 0 350 350 45,357.53 48,419.73 0 0 46,820.21 49,883.02 244,431.05 218,347.82 65,648.43 67,323.69 310,079.48 285,671.51 42,895.39 43,746.43 399,795.08 379,300.96 Mar '08 Mar '09 12 months 12 months

Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs)

8,934.37 8,105.85 146,163.11 71,547.39 5,968.57 1,987.85 3,980.72 147.94 12,509.57 251,388.95 119,895.78 15,025.21 249.55

18,706.88 18,414.45 195,865.60 91,257.84 6,298.56 2,375.14 3,923.42 189.66 16,300.26 344,658.11 177,054.18 22,717.23 270.37

29,377.53 8,663.60

17,536.33 12,430.23

27,514.29 11,359.40 181,205.60 120,892.80 7,114.12 3,901.43 3,212.69 0 19,214.93 363,399.71 694,948.84 38,597.36 463.01

225,616.08 218,310.85 111,454.34 103,058.31 7,036.00 7,443.71 2,927.11 3,642.09 4,108.89 3,801.62 0 0 20,574.63 24,163.62 399,795.07 379,300.96 371,737.36 803,991.92 29,377.55 36,678.71 417.64 444.94

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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 Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses 13,784.50 5,036.62 18,821.12 9,597.45 1,082.29 2,360.72 623.79 2,616.78 0 5,274.23 1,409.35 16,281.03 Mar '06 12 mths 2,540.07 0 188.22 2,728.29 0 759.33 106.5 28.55 85 249.55 248.69 12 mths 22,994.29 6,962.95 29,957.24 16,358.50 1,616.75 4,900.67 544.78 3,426.32 0 8,849.86 1,638.66 26,847.02 Mar '07 12 mths 3,110.22 0 293.44 3,403.66 0 901.17 153.1 34.59 100 270.37 1,351.12 12 mths 12 mths 12 mths 25,706.93 7,292.43 32,999.36 17,592.57 1,925.79 6,056.48 619.5 2,780.03 0 10,221.99 1,159.81 28,974.37 Mar '10 12 mths 4,024.98 0 2,809.65 6,834.63 0 1,337.95 164.04 36.1 120 463.01 1,867.22

30,788.34 31,092.55 8,878.85 8,117.76 39,667.19 39,210.31 23,484.24 22,725.93 2,078.90 1,971.70 5,834.95 5,977.72 578.35 3,533.03 0 678.6 4,098.22 0

10,855.18 10,795.14 1,170.05 1,931.10 35,509.47 35,452.17 Mar '08 Mar '09 12 mths 12 mths 4,157.73 0 998.27 5,156.00 0 1,227.70 149.67 37.37 110 417.64 1,342.31 3,758.13 -0.58 2,436.32 6,193.87 0 1,224.58 151.21 33.76 110 444.94 2,008.42

Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves

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Transfer to Other Reserves Proposed Dividend/Transfer to Govt Balance c/f to Balance Sheet Total

1,320.34 865.83

0 1,054.27

0.01 1,377.37

0.01 1,375.79

1.04 1,501.99

293.44 2,728.30

998.27 3,403.66

2,436.32 5,156.01

2,809.65 6,193.87

3,464.38 6,834.63

Cash Flow Statement For the year ended March 2009, Mar 10, Mar 11. Mar '09 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 38041.13 29966.56 38873.69 37357.58 38041.13 29966.56 683.55 -8074.57 8907.13 29964.82 1625.36 1382.62 -17561.11 3857.88 6150.73 5056.1 -11631.15 Mar '10 12 mths 5116.97 -14188.49 Mar '11 12 mths 5345.32 1869.21

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 Assets Stock prepaid Expenses / Current Liabilities F.Y. 2008-09 6.42 F.Y. 2009-10 - 5.94 F.Y. 2010-11 14.70 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. 2008-09 14.45 F.Y. 2009-10 - 14.13 F.Y. 2010-11 16.95 Interpretation: Banks operating profit is increasing as compared to previous year, it shows that it would ensure adequate return to owners in comparison to previous year. Gross Profit Ratio: Gross Profit / Net Sales * 100

F.Y. 2008-09 12.99 F.Y. 2009-10 - 12.36 F.Y. 2010-11 15.06

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 Interpretation: By analyzing the Gross profit ratio we measure that bank has a good management 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. 2008-09 10.51 F.Y. 2009-10 - 9.74 F.Y. 2010-11 12.17 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. 2008-09 5.27 F.Y. 2009-10 - 4.42 F.Y. 2010-11 3.91 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. 2008-09 5.61 F.Y. 2009-10 - 5.14 F.Y. 2010-11 4.60 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 : NPAT Preference 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 = (D SD)/S D - Sum of dividends over a period (usually 1 year) SD - Special, one time dividends S - Shares outstanding for the period F.Y. 2008-09 11.00 F.Y. 2009-10 12.00 F.Y. 2010-11 14.00 Interpretation: The dividend per share it continuously increases from 2008-09 to 20102011.

RETURN ON LONG TERM FUNDS: RETURN ON LONG TERM FUNDS: EBIT/LONG TERM FUNDS*100 F.Y. 2008-09 56.72 F.Y. 2009-10 44.72 F.Y. 2010-11 42.97 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. 2008-09 0.10 F.Y. 2009-10 0.09 F.Y. 2010-11 0.08 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. 2008-09 5.14 F.Y. 2009-10 4.60 F.Y. 2010-11 3.55 Interpretation: The asset turnover ratio is decreased continuously from 2008-09 to 20102011.

CAPITAL ADEQUACY RATIO: CAPITAL ADEQUACY RATIO= (TIER ONE CAPITAL+ TIER TWO CAPITAL)/RISK WEITAGE CAPITAL F.Y. 2008-09 15.53 F.Y. 2009-10 19.41 F.Y. 2010-11 19.54 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. 2008-09 63.23 F.Y. 2009-10 61.40 F.Y. 2010-11 64.49
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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. 2008-09 1.08 F.Y. 2009-10 0.91 F.Y. 2010-11 0.65 Interpretation: The net profit/ Total funds is increased continuously from 2008-09 to 2010-11

EARNING PER SHARE:

F.Y. 2008-09 33.76 F.Y. 2009-10 36.10 F.Y. 2010-11 44.73 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 other expenses. 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.

Bibliography http://money.rediff.com/companies/icici-bank-ltd/14030056/ratio http://www.bharatbook.com/productdetail.asp?id=98178 http://www.corporateinformation.com/Company-Snapshot.aspx?cusip=C356P1850 http://www.icicibank.com/aboutus/corp-profile.html http://money.rediff.com/companies/state-bank-of-india/14030001/ratio http://www.statebankofindia.com/webfiles/uploads/files/1275994607852_5_DIRECTOR SREPORT.pdf http://www.statebankofindia.com/user.htm http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=ibn http://www.moneycontrol.com/financials/statebankindia/balance-sheet/SBI http://www.moneycontrol.com/stocks/company_info/sector_info.php?sub_sector=Banks +-+Private+Sector

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