CHAPTER-I

INTRODUCTION

1
FINANCIAL PERFORMANCE ANALYSIS

Financial analysis is the process of identifying the financial strengths and weakness of the
company by proper establishment of the relationship between the items of the balance sheet
and profit and loss account. Financial Analysis can be undertaken by management of the
firm, land by parties outside the firm viz., owners, creditors, investors, the nature of analysis
will differ depending on the purpose of the analysis.

Trade creditors are inserted in firm’s ability claims over a very short period of time. Their
analysis will, therefore, confine to the evolution of the firm’s liquidity position.

Suppliers of long term debt, on their hand, are concerned with the firm’s long term solvency
and survival. They analyze the firm’s probability over time, its ability to generate cash to be
able to pay interest and repay principal and the relationship.

Between various source of funds long term creditors to analyze the historical financial
statements to make analysis about its futures solvency and profitability

What Is Financial Performance?

Financial performance is a subjective measure of how well a firm can use assets from its
primary mode of business and generate revenues. The term is also used as a general measure
of a firm's overall financial health over a given period.

Analysts and investors use financial performance to compare similar firms across the same
industry or to compare industries or sectors in aggregate.

Understanding Financial Performance

There are many ways to measure financial performance, but all measures should be taken in
aggregate. Line items, such as revenue from operations, operating income, or cash flow from
operations can be used, as well as total unit sales. Furthermore, the analyst or investor may
wish to look deeper into financial statements and seek out margin growth rates or any
declining debt. Six Sigma methods focus on this aspect.

2
There are many stakeholders in a company, including trade creditors, bondholders, investors,
employees, and management. Each group has its own interest in tracking the financial
performance of a company. Analysts learn about financial performance from data published
by the company in Form 10K, also known as the annual report. Public companies must
publish the SEC required 10K form. The purpose of the report is to provide stakeholders
with accurate and reliable financial statements that provide an overview of the company's
financial performance.

In addition, company leaders audit and sign these statements and other disclosure
documents. In this way, the 10K represents the most comprehensive source of information
on financial performance made available to investors annually. Included in the 10K are three
financial statements: the balance sheet, the income statement, and the cash flow statement.

The financial performance identifies how well a company generates revenues and manages
its assets, liabilities, and the financial interests of its stakeholders.
Balance Sheet
The balance sheet is a snapshot of the financial balances of an organization. It provides an
overview of how well the company manages its assets and liabilities. Analysts can find
information about long-term vs. short-term debt on the balance sheet. They can also find
information about what kind of assets the company owns and what percentage of assets are
financed with liabilities vs. stockholders' equity.

Income Statement
The income statement provides a summary of operations for the entire year. The income
statement starts with sales or revenues and ends with net income. Also referred to as the
profit and loss statement, the income statement provides the gross profit margin, the cost of
goods sold, operating profit margin, and net profit margin. It also provides an overview of
the number of shares outstanding, as well as a comparison against performance the prior
year.

Cash Flow Statement

The cash flow statement is a combination of both the income statement and the balance
sheet. For some analysts, the cash flow statement is the most important financial statement
because it provides a reconciliation between net income and cash flow. This is where
analysts see how much the company spent on stock repurchases, dividends, and capital

3
expenditures. It also provides the source and uses of cash flow from operations, investing,
and financing.

Financial Performance in broader sense refers to the degree to which financial objectives
being or has been accomplished and is an important aspect of finance risk management. It is
the process of measuring the results of a firm's policies and operations in monetary terms. It
is used to measure firm's overall financial health over a given period of time and can also be
used to compare similar firms across the same industry or to compare industries or sectors in
aggregation.

Firms and interested groups such as managers, shareholders, creditors, and tax authorities
look to answer important questions like :
1. What is the financial position of the firm at a given point of time?

2. How is the Financial Performance of the firm over a given period of time?

These questions can be answered with the help of a financial analysis of a firm. Financial
analysis involves the use of financial statements. A financial statement is a collection of data
that is organized according to logical and consistent accounting procedures. Its purpose is to
convey an understanding of some financial aspects of a business firm.

It may show a position of a period of time as in the case of a Balance Sheet, or may reveal a
series of activities over a given period of time, as in the case of an Income Statement. Thus,
the term ‘financial statements’ generally refers to two basic statements: the Balance Sheet
and the Income Statement.

The Balance Sheet shows the financial position (condition) of the firm at a given point of
time. It provides a snapshot that may be regarded as a static picture. “Balance sheet is a
summary of a firm’s financial position on a given date that shows Total assets = Total
liabilities + Owner’s equity.”

The Income Statement (referred to in India as the profit and loss statement) reflects the
performance of the firm over a period of time. “Income statement is a summary of a firm’s
business revenues and expenses over a specified period, ending with net income or loss for
the period.”
4
However, financial statements do not reveal all the information related to the financial
operations of a firm, but they furnish some extremely useful information, which highlights
two important factors profitability and financial soundness.

Financial Performance Analysis

Financial performance analysis includes analysis and interpretation of financial statements in

such a way that it undertakes full diagnosis of the profitability and financial soundness of the
business. The financial analyst program provides vital methodologies of financial analysis.

METHODOLOGY

 The study conducted is based upon information obtained from ICICI BANK LTD of the

industry and it is annual reports which were published by the companies.

 The data collection is two types.

 Data collected by interviewing chief accounts officer.

 Data collected from financial statements books, reports & company branches.

NEED OF THE STUDY

 In the present key competitive business world the ICICI BANK LTD witnessed
significant development.
 The growing urbanization in the country providing huge development of the Bajaj ICICI
BANK LTD fluencies the business of the motor vehicle insurance. Life insurance etc.
 The ICICI BANK LTD possesses certain features like control of so financial manager
must be vary collations in designing financial position.
 To discharge the complicated duties, The financial manager must know how the said
problems affect the profitability of insurance company how are the profits to be managed
these questions call for a scientific examinations

5
OBJECTIVES OF STUDY

 To analyses the financial performance of ICICI BANK LTD, .

 To analyses the financial performance of unit linked policy of ICICI BANK LTD.

 To analyses various funds operated by ICICI BANK LTD

 To analyses the economic growth achievement of ICICI BANK LTD.

SCOPE OF THE STUDY

 This study attempts to analyses the financial performance of ICICI BANK LTD, for the

past 4 years.

 Financial performance has been analysis by comparing all types of funds in ICICI

BANK LTD.

 This study has been confined to Bajaj Allianz Life Insurance unit linked policy only.

LIMITATIONS OF THE STUDY

 It is only a study of interim reports.

 Financial analysis is based upon only monetary information and non-monetary

factors are ignored.

 Different people may interpret the same analysis in different ways.

 It does not consider the changes in prices level.

 Changes in accounting procedure by firm may often make financial analysis

misleading.

6
 CHAPTER-II
REVIEW OF LITERATURE

7
Financial statements are the important source of information for financial decisions. In
this study, the researcher has not only focused on preparing balance sheet, profit and
loss account, cash flow statement and fund flow statement but also paid special
attention to the difference between accounting value and economic value. Moreover, the
difference between accounting income and cash flow has also been highlighted in it.

P IFSF S
o ni tCu
Source: Sharma & Gupta 2014 s c aan t
i onts a
t maehd t
i enm e
o ScieF
n t nl m
Analysis of Common Size Financial Statements
Saa to e
t l wn
t o
In common size statement, all items are expressed in common base. In profiteSfS t
am C
and loss account or income statement, sales figure is taken as base i.e.,tet ht
ena a o
100 and all other figures are expressed as percentage of sales. Similarly, intt at f
mO n
balance sheet total of assets is taken as base i.e. 100 and different assets areere ge
n mmC
expressed as a percentage of the total assets. On the other side total of Pe ee h
tr s
liabilities is taken as base i.e. 100 and various liabilities are taken as a part on n a
Ots t n
of total liabilities or expressed as a percentage of total liabilities (Yameen f i g
ri n
2016). B t e
8 a s
l O
a aw i
n nn n
c de
e r
 The format of Common Size Income Statement and Balance Sheet are as follows:

Format of Common Size Income Statement

Particulars Absolute Amounts Percentage of Net Sales

Previous Current Previous Current
Year Year Year Year
Net Sales --- --- 100 100
Less: Cost of Goods Sold --- --- --- ---
Gross Profit --- --- --- ---
Less: Operating --- --- --- ---
Expenses
PBIT --- --- --- ---
Less: Interest --- --- --- ---
PBT --- --- --- ---
Less: Tax --- --- --- ---
PAT --- --- --- ---
th
Source: Chandra, P. (2011). Financial Management: Theory and Practices (8
Ed.).
New Delhi, India: Tata McGraw Hill Education Pvt. Ltd.
Format of Common Size Balance Sheet

Particulars Absolute Amounts Percentage of Total

Assets
Previous Current Previous Current
Year Year Year Year
Share Capital --- --- --- ---
Reserves --- --- --- ---
Loans Funds --- --- --- ---
Current Liabilities --- --- --- ---
Total --- --- 100 100
Fixed Assets --- --- --- ---
Investments --- --- --- ---
Current Assets --- --- --- ---
Miscellaneous --- --- --- ---
Expenditure & Loss
Total --- --- 100 100
th
Source: Chandra, P. (2011). Financial Management: Theory and Practices (8 Ed.).
3.3.1. Analysis of Comparative Financial Statements

The comparative financial statements reveal the operating results and financial position
of a business concern in a comparative form for a period of two or more years. From
comparative statement point of view, generally two financial statements (balance sheet
and income statement) are taken for comparative financial analysis purpose. When
the financial statements are prepared in a comparative form both absolute and

9
percentage change helps to financial analyst to draw useful conclusion whether the
sales revenue and expenses have increased or decreased in current year over the
previous year. Similarly, comparative statement will show trend and direction about the
financial position also (Yameen 2016).

Format of Comparative Income Statement

Year Ending Increase / Increase /
Particulars Decrease Decrease
Current Previous (Absolute Percentage
Year Year Change)
Net Sales --- --- 100 100
Less: Cost of Goods Sold --- --- (+/-) (+/-)
Gross Profit --- --- (+/-) (+/-)
Less: Operating Expenses --- --- (+/-) (+/-)
Administrative Expenses --- --- (+/-) (+/-)
Selling Expenses --- --- (+/-) (+/-)
Total Operating Expenses --- --- (+/-) (+/-)
Operating Profit --- --- (+/-) (+/-)
Less: Interest Expenses --- --- (+/-) (+/-)
PBT --- --- (+/-) (+/-)
Less: Taxes --- --- (+/-) (+/-)
PAT --- --- (+/-) (+/-)

th
Source: Gupta, S.P. (2008). Management Accounting (15 Ed.) Agra, India: Sahitya
Bhawan Publication.

Format of Comparative Balance Sheet

Year Ended Increase / Increase /
Particulars Decrease Decrease
Current Previous (Absolute Percentage
Year Year Change)
Liabilities and Capital
S re Capital --- --- (+/-) ( + / - )%
h urrent Liabilities --- --- (+/-) ( + / - )%
a ong Term Liabilities --- --- (+/-) ( + / - )%
C Total --- --- (+/-) ( + / - )%
L Assets
Current Assets --- --- (+/-) ( + / - )%
Fixed Assets --- --- (+/-) ( + / - )%
Other Assets --- --- (+/-) ( + / - )%
Total --- --- (+/-) ( + / - )%

RATIO ANALYSIS
10
Ratio analysis is a tool of financial analysis and it is used at great level in the
business. It is the systematic use of ratio to interpret the financial statements so that the
strength and weakness of a firm as well as its historical performance and current
financial condition can be determined (Khan & Jain 2009). Ratios are used to evaluate
the financial performance of a company. The users of the ratios may be bankers,
creditors, debtors, shareholders, government etc. because they cannot draw conclusions
from available financial statements. Therefore, different ratios play different roles for
stakeholders. The vital financial ratios are profitability ratios, solvency ratios, liquidity
ratios and turnover ratios.

Profitability Ratios

The management of the firm is naturally inclined to measure its operating efficiency and
investors invest their funds in the expectation of reasonable returns. Profitability of a
company can be defined as its capability to generate income which exceeds its
liabilities. Profitability is the profit earning ability which is an essential factor
contributing to the survival of the firms. With the help of profitability the stakeholders can
judge the borrowing capacity of the firm. It plays a significant role in deciding the capital
structure of the firm. Profitability ratios judge the ability of the top management in the
business with the help of profit. Only these ratios raise the curtain of the success or failure
of management. It is the only ratio which is used by the entire stockholders of the
business leading to their pleasure. If, a company is dealing with high dividend policy
with its customers, it plays a significant role in the appreciation of the value of the share
at the stock market. Organization wants more and more profit to pay dividends and
reinvest in the business to increase the production capacity and strengthen the overall
financial position of the company.

Profitability is defined as a substitution of financial performance. And it is one of the

main objectives of the management of the organization. It is a prerequisite for an
increasing the competitiveness of a company operating in a globalized era. Moreover, it
attracts investors, lenders and improves the level of solvency, it also enhances the
confidence level of the customers through goodwill (Burca and Batrinca 2014).

11
Figure 3.2

Profitability ratios in relation to sales and investment

Gross Profit Ratio

Operating Ratio

Expense Ratio

Cash Profit Ratio

IR IRO RPD
RRN
nnPR EC
D BE
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erapeiaeee ioar
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The following are the ratios in relation to sales: Gross

Profit Ratio

It defines the relationship between gross profit to net sales. In other words, it is the
difference between revenue and direct expenses of the firm. Generally gross profit ratio
is calculated in terms of percentage. High gross profit ratio is considered as beneficial
for the company. There is no standard norm for gross profit ratio.

Operating Ratio

Operating ratio defines the association between cost of goods sold and other operating
expenses divided by net sales. The ratio evaluates the cost of operations per rupee of sale.
Higher operating ratio is not considered beneficial for the company because it has small
margin to meet out interest, income tax and dividend.

Operating Profit Ratio

Operating profit ratio defines the relationship between operating profit and sales.

Net Profit Ratio

The net profit explains the association between net profit after tax and net sales of the
firm. Moreover, it indicates the efficiency of the management of the company in
terms of manufacturing, selling, administrative and different activities of the firm.
High net profit ratio is beneficial for the company and it plays a vital role at the time of
adverse economic condition. Higher the ratio the better is the profitability. But, at the
time of the interpretation of net profit ratio, it should be kept in mind that the
performance of profits must be evaluated in terms of investments or capital of the
firm. This interpretation should not to be confined in terms of sales only.

Expenses Ratio

Expenses ratio indicates the relationship between different expenses in respect of net
sales. Generally, operating ratio reveals the average total variations in expenses.

13
Calculation of individual expense becomes significant when few expenses increase or
decrease.

Cash Profit Ratio

Net profit of the firm is affected by the method of calculation of depreciation. Moreover,
depreciation is considered as a non-cash item. Therefore, cash profit ratio explains the
association between net profit plus depreciation and net sales.

The following are the ratios in relation to investment: Return on

Investment

When profitability ratios are computed with the help of investments it is known as
return on investment. There are three different concepts of investments in vogue in
financial literature: assets, capital employed and shareholders‟ equity (Khan and Jain
2005). According to the available literature, there are three broad categories of return on
investment and these are as follows:

(i) Return on Assets

(ii) Return on Capital Employed
(iii) Return on Shareholders‟ Equity
Return on Assets

It defines the relationship between net profit after tax and how assets are used in
business to generate profits. The return on assets gives an idea as to how efficient
management is at using its assets to generate earnings. It reveals that what a company can
do with what it possesses in terms of its assets. Generally, it is used by companies,
banks, financial institutions and other stakeholders for determining of the performance
(Rohit Bansal 2014). The return on assets may also be called profit toasset ratio. The
return on assets indicate that the profitability position of the firm with respect to assets
employed in the business.

14
Return on Capital Employed

It indicates the relationship between profits and the capital employed. It is the key
ratio to measure the overall profitability and efficiency of a business. In other words, it
accounts for the total investments made in a business. The different kind of return on
capital employed widely used can be defined as:

Gross Capital Employed

It defines the total assets used in the business. Further, it is total of fixed and current
assets being used in the business.

Gross Capital Employed = Fixed Assets + Current Assets

Net Capital Employed

It reveals the difference between total assets and current liabilities used in the business.

Net Capital Employed = Total Assets – Current Liabilities

Proprietors’ Net Capital Employed

It means the shareholders‟ funds or investment used in the business.

Proprietors‟ Net Capital Employed = F.A. + C.A. – Outside Liabilities

Significance of Return on Capital Employed

It is the chief examination of the efficiency of the business. It measures not only the
overall efficiency of business but also helps in judging the performance of different
departments in the organization. The owners are keen to know about the profitability of
the business in relation to money invested in it. High return on capital employed is
treated as good sign for the owners of the equity. Moreover, it plays a vital role in
formulating future business policy of expansion, diversification, fair remuneration to
different factors of production and financial institutions; judging that the firm is able to
given loan or not (Sharma and Gupta 2014).

15
Return on Shareholders’ Equity

It measures the return of the owners‟ i.e. preference and equity shareholders‟ investment
in the firm. In other words, it defines the return of owners‟ funds. Moreover, the
profitability ratios based on shareholders‟ equity are termed as return on shareholders‟
equity (Khan and Jain 2005).

There are different measures to compute returns on shareholder‟s equity:

(i) Return on total shareholders‟ equity

(ii) Return on Ordinary Shareholders‟ Equity (Net Worth)

(iii) Earnings Per Share

(iv) Cash Earnings Per Share

(v) Book Value Per Share

(vi) Price to Book Value Ratio

(vii) Dividend Per Share

(viii) Dividend Pay-out Ratio

(ix) Earnings and Dividend Yield

(x) Price Earnings Ratio

16
 CHAPTER-III
INDUSTRY PROFILE AND COMPANY PROFILE

INDUSTRY PROFILE

17
Banking in India, in the modern sense, originated in the last decade of the 18th century.
Among the first banks were the Bank of Hindustan, which was established in 1770 and
liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in 1791.

The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It
originated and started working as the Bank of Calcutta in mid-June 1806. In 1809, it was
renamed as the Bank of Bengal. This was one of the three banks founded by a presidency
government, the other two were the Bank of Bombay in 1840 and the Bank of Madras in
1843. The three banks were merged in 1921 to form the Imperial Bank of India, which upon
India's independence, became the State Bank of India in 1955. For many years the presidency
banks had acted as quasi-central banks, as did their successors, until the Reserve Bank of
India[5] was established in 1935, under the Reserve Bank of India Act, 1934.

In 1960, the State Banks of India was given control of eight state-associated banks under the
State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks.[6]
In 1969 the Indian government nationalised 14 major private banks, one of the big bank was
Bank of India. In 1980, 6 more private banks were nationalised. These nationalised banks are
the majority of lenders in the Indian economy. They dominate the banking sector because of
their large size and widespread networks.

The Indian banking sector is broadly classified into scheduled and non-scheduled banks. The
scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act,
1934. The scheduled banks are further classified into: nationalised banks; State Bank of India
and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private
sector banks. The term commercial banks refers to both scheduled and non-scheduled
commercial banks regulated under the Banking Regulation Act, 1949.

Generally the supply, product range and reach of banking in India is fairly mature-even
though reach in rural India and to the poor still remains a challenge. The government has
developed initiatives to address this through the State Bank of India expanding its branch
network and through the National Bank for Agriculture and Rural Development (NABARD)
with facilities like microfinance.

18
Ancient India

The Vedas (2000–1400 BCE) are the earliest Indian texts to mention the concept of usury,
with the word kusidin translated as "usurer". The Sutras (700–100 BCE) and the Jatakas
(600–400 BCE) also mention usury. Texts of this period also condemned usury: Vasishtha
forbade Brahmin and Kshatriya varnas from participating in usury. By the 2nd century CE,
usury became more acceptable. The Manusmriti considered usury an acceptable means of
acquiring wealth or leading a livelihood.[12] It also considered money lending above a certain
rate and different ceiling rates for different castes a grave sin.

The Jatakas, Dharmashastras and Kautilya also mention the existence of loan deeds, called
rnapatra, rnapanna, or rnalekhaya.

Later during the Mauryan period (321–185 BCE), an instrument called adesha was in use,
which was an order on a banker directing him to pay the sum on the note to a third person,
which corresponds to the definition of a modern bill of exchange. The considerable use of
these instruments has been recorded. In large towns, merchants also gave letters of credit to
one another.[15]

Colonial era

During the period of British rule merchants established the Union Bank of Calcutta in 1829,
first as a private joint stock association, then partnership. Its proprietors were the owners of
the earlier Commercial Bank and the Calcutta Bank, who by mutual consent created Union
Bank to replace these two banks. In 1840 it established an agency at Singapore, and closed
the one at Mirzapore that it had opened in the previous year. Also in 1840 the Bank revealed
that it had been the subject of a fraud by the bank's accountant. Union Bank was incorporated
in 1845 but failed in 1848, having been insolvent for some time and having used new money
from depositors to pay its dividends.

The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock
bank in India, it was not the first though. That honour belongs to the Bank of Upper India,

19
which was established in 1863 and survived until 1913, when it failed, with some of its assets
and liabilities being transferred to the Alliance Bank of Simla.

Foreign banks too started to appear, particularly in Calcutta, in the 1860s. Grindlays Bank
opened its first branch in Calcutta in 1864. The Comptoir d'Escompte de Paris opened a
branch in Calcutta in 1860, and another in Bombay in 1862; branches followed in Madras
and Pondicherry, then a French possession. HSBC established itself in Bengal in 1869.
Calcutta was the most active trading port in India, mainly due to the trade of the British
Empire, and so became a banking centre.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in
1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in
Lahore in 1894, which has survived to the present and is now one of the largest banks in
India.

Around the turn of the 20th Century, the Indian economy was passing through a relative
period of stability. Around five decades had elapsed since the Indian rebellion, and the social,
industrial and other infrastructure had improved. Indians had established small banks, most
of which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks
and a number of Indian joint stock banks. All these banks operated in different segments of
the economy. The exchange banks, mostly owned by Europeans, concentrated on financing
foreign trade. Indian joint stock banks were generally under capitalised and lacked the
experience and maturity to compete with the presidency and exchange banks. This
segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the
times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into
separate and cumbersome compartments."

The period between 1906 and 1911 saw the establishment of banks inspired by the Swadeshi
movement. The Swadeshi movement inspired local businessmen and political figures to
found banks of and for the Indian community. A number of banks established then have

20
survived to the present such as Catholic Syrian Bank, The South Indian Bank, Bank of India,
Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

The fervour of Swadeshi movement led to the establishment of many private banks in
Dakshina Kannada and Udupi district, which were unified earlier and known by the name
South Canara (South Kanara) district. Four nationalised banks started in this district and also
a leading private sector bank. Hence undivided Dakshina Kannada district is known as
"Cradle of Indian Banking".

The inaugural officeholder was the Britisher Sir Osborne Smith(1 April 1935), while C. D.
Deshmukh(11 August 1943) was the first Indian governor.On December 12,
2018,Shaktikanta Das begins his journey as the new RBI Governor, taking charge from Urjit
R Patel.

During the First World War (1914–1918) through the end of the Second World War (1939–
1945), and two years thereafter until the independence of India were challenging for Indian
banking. The years of the First World War were turbulent, and it took its toll with banks
simply collapsing despite the Indian economy gaining indirect boost due to war-related
economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in
the following table:

Number of banks
Authorised Capital Paid-up Capital
Years
(₹ Lakhs) (₹ Lakhs)
that failed
1918 12 274 35
1917 42 710 109
1916 11 56 5
1915 13 231 4
1914 9 76 25
1913 7 209 1

21
Post-Independence

During 1938-46, bank branch offices trebled to 3,469 and deposits quadrupled to ₹962 crore.
Nevertheless, the partition of India in 1947 adversely impacted the economies of Punjab and
West Bengal, paralysing banking activities for months. India's independence marked the end
of a regime of the Laissez-faire for the Indian banking. The Government of India initiated
measures to play an active role in the economic life of the nation, and the Industrial Policy
Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted in
greater involvement of the state in different segments of the economy including banking and
finance. The major steps to regulate banking included:

 The Reserve Bank of India, India's central banking authority, was established in April
1935, but was nationalized on 1 January 1949 under the terms of the Reserve Bank of
India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).
 In 1949, the Banking Regulation Act was enacted, which empowered the Reserve
Bank of India (RBI) to regulate, control, and inspect the banks in India.
 The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could have
common directors.

Nationalisation in 1969 and 1980

Despite the provisions, control and regulations of the Reserve Bank of India, banks in India
except the State Bank of India (SBI), remain owned and operated by private persons. By the
1960s, the Indian banking industry had become an important tool to facilitate the
development of the Indian economy. At the same time, it had emerged as a large employer,
and a debate had ensued about the nationalisation of the banking industry. Indira Gandhi, the
then Prime Minister of India, expressed the intention of the Government of India in the
annual conference of the All India Congress Meeting in a paper entitled Stray thoughts on
Bank Nationalization.

22
Thereafter, the Government of India issued the Banking Companies (Acquisition and
Transfer of Undertakings) Ordinance, 1969 and nationalised the 14 largest commercial banks
with effect from the midnight of 19 July 1969. These banks contained 85 percent of bank
deposits in the country.[21] Within two weeks of the issue of the ordinance, the Parliament
passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it
received presidential approval on 9 August 1969.

The following banks were nationalised in 1969:

 Allahabad Bank
 Bank of Baroda
 Bank of India
 Bank of Maharashtra
 Central Bank of India
 Canara Bank
 Dena Bank
 Indian Bank
 Indian Overseas Bank
 Punjab National Bank
 Syndicate Bank
 UCO Bank
 Union Bank
 United Bank of India

A second round of nationalisations of six more commercial banks followed in 1980. The
stated reason for the nationalisation was to give the government more control of credit
delivery. With the second round of nationalisations, the Government of India controlled
around 91% of the banking business of India.

The following banks were nationalised in 1980:

 Punjab and Sind Bank

 Vijaya Bank

23
  Oriental Bank of India
 Corporate Bank
 Andhra Bank
 New Bank of India

Later on, in the year 1993, the government merged New Bank of India with Punjab National
Bank.[22] It was the only merger between nationalised banks and resulted in the reduction of
the number of nationalised banks from 20 to 19. Until the 1990s, the nationalised banks grew
at a pace of around 4%, closer to the average growth rate of the Indian economy.

Liberalization in the 1990s

In the early 1990s, the then government embarked on a policy of liberalisation, licensing a
small number of private banks. These came to be known as New Generation tech-savvy
banks, and included Global Trust Bank (the first of such new generation banks to be set up),
which later amalgamated with Oriental Bank of Commerce, UTI Bank (since renamed Axis
Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy
of India, revitalised the banking sector in India, which has seen rapid growth with strong
contribution from all the three sectors of banks, namely, government banks, private banks
and foreign banks.

The next stage for the Indian banking has been set up, with proposed relaxation of norms for
foreign direct investment. All foreign investors in banks may be given voting rights that
could exceed the present cap of 10% at present. It has gone up to 74% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were
used to the 4–6–4 method (borrow at 4%; lend at 6%; go home at 4) of functioning. The new
wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.
All this led to the retail boom in India. People demanded more from their banks and received
more.

24
Current period

The Indian banking sector is broadly classified into scheduled banks and non-scheduled
banks.All banks included in the Second Schedule to the Reserve Bank of India Act, 1934 are
Scheduled Banks. These banks comprise Scheduled Commercial Banks and Scheduled Co-
operative Banks. Scheduled Co-operative Banks consist of Scheduled State Co-operative
Banks and Scheduled Urban Cooperative Banks.

In the bank group-wise classification, IDBI Bank Ltd. is included in the category of other
public sector bank.

Growth of Banking in India of Scheduled Commercial Banks

31 March of
Indicators
2010 2011 2012 2013 2014 2015 2016 2017 2018
Number of 1
Commercia 284 218 178 6 166 163 163 169 151
l Banks 9
Number of
70,373 72,072 74,653 78,787 82,897 88,203 94,019 102,377 109,811
Branches
Population
per Banks
16 16 15 15 15 14 13 13 12
(in
thousands)

₹31,96 ₹38,34 ₹52,0 ₹59,09

₹67,504
₹21,090 ₹26,119 9 1 ₹44,928 78 1
₹17,002 billion .54
Aggregate billion billion billion billion billion billion billion
(US$240 billio billion
Deposits (US$290 (US$360 (US$44 (US$5 (US$630 (US$7 (US$82
n) (US$940
billion) billion) 0 billio 30 billi billion) 20 billi 0 billio
billion)
n) on) on) n)
Bank ₹11,004 billion ₹15,071 ₹19,312 ₹23,61 ₹27,75 ₹32,448 ₹39,4 ₹46,11 ₹52,605
Credit (US$150 billio billion billion 9 5 billion 21 9 billion

25
Growth of Banking in India of Scheduled Commercial Banks
31 March of
Indicators
2010 2011 2012 2013 2014 2015 2016 2017 2018
billion billion billion billion
(US$210 (US$270 (US$33 (US$3 (US$450 (US$5 (US$64 (US$730
n)
billion) billion) 0 billio 90 billi billion) 50 billi 0 billio billion)
n) on) on) n)
Deposit as
percentage
62% 64% 69% 73% 77% 78% 78% 78% 79%
to GNP (at
factor cost)

₹28,61 ₹33,91 ₹45,5 ₹50,18

₹19,130 ₹39,107 ₹56,380
Per Capita ₹16,281 ₹23,382 0 9 05 3
(US$270 (US$540 (US$780
Deposit (US$230) (US$330) (US$40 (US$4 (US$6 (US$70
) ) )
0) 70) 30) 0)
₹21,21 ₹24,61 ₹34,1 ₹38,87
₹13,869 ₹28,431 ₹44,028
Per Capita ₹10,752 ₹17,541 8 7 87 4
(US$190 (US$400 (US$610
Credit (US$150) (US$240) (US$30 (US$3 (US$4 (US$54
) ) )
0) 40) 80) 0)
Credit
Deposit 63% 70% 74% 75% 74% 74% 76% 79% 79%
Ratio

By 2010, the supply, product range and reach of banking in India was generally fairly
mature-even though reach in rural India still remains a challenge for the private sector and
foreign banks. In quality of assets and capital adequacy, Indian banks are considered to have
clean, strong and transparent balance sheets relative to other banks in comparable economies
in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from
the government.

26
With the growth in the Indian economy expected to be strong for quite some time-especially
in its services sector-the demand for banking services, especially retail banking, mortgages
and investment services are expected to be strong. One may also expect M&As, takeovers,
and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in
Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has
been allowed to hold more than 5% in a private sector bank since the RBI announced norms
in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by
them.

In recent years critics have charged that the non-government owned banks are too aggressive
in their loan recovery efforts in connexion with housing, vehicle and personal loans. There
are press reports that the banks' loan recovery efforts have driven defaulting borrowers to
suicide.[24][25][26]

By 2013 the Indian Banking Industry employed 1,175,149 employees and had a total of
109,811 branches in India and 171 branches abroad and manages an aggregate deposit of
₹67,504.54 billion (US$940 billion or €820 billion) and bank credit of ₹52,604.59 billion
(US$730 billion or €640 billion). The net profit of the banks operating in India was
₹1,027.51 billion (US$14 billion or €13 billion) against a turnover of ₹9,148.59 billion
(US$130 billion or €110 billion) for the financial year 2012–13.

Pradhan Mantri Jan Dhan Yojana (Hindi: प्रधानमंत्री जन धन योजना, English: Prime
Minister's People Money Scheme) is a scheme for comprehensive financial inclusion
launched by the Prime Minister of India, Narendra Modi, in 2014.[27] Run by Department of
Financial Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15 million) bank
accounts were opened under this scheme.[28][29] By 15 July 2015, 16.92 crore accounts were
opened, with around ₹20,288.37 crore (US$2.8 billion) were deposited under the scheme, [30]
which also has an option for opening new bank accounts with zero balance.

27
Payments Bank

Payments bank is a new model of banks conceptualised by the Reserve Bank of India (RBI).
These banks can accept a restricted deposit, which is currently limited to ₹1 lakh per
customer. These banks may not issue loans or credit cards, but may offer both current and
savings accounts. Payments banks may issue ATM and debit cards, and offer net-banking
and mobile-banking. The banks will be licensed as payments banks under Section 22 of the
Banking Regulation Act, 1949, and will be registered as public limited company under the
Companies Act, 2013.

There are six payments banks

1. Aditya Birla Idea Payments Bank Ltd.

2. Airtel Payments Banks Ltd.
3. Fino Payments Bank Ltd.
4. India Post Payments Bank Ltd.
5. Jio Payments Bank Ltd.
6. PayTm Payments Bank Ltd.

Small finance banks

Main article: Small finance bank

To further the objective of financial inclusion, the RBI granted approval in 2016 to ten
entities to set up small finance banks. Since then, all ten have received the necessary licenses.
A small finance bank is a niche type of bank to cater to the needs of people who traditionally
have not used scheduled banks. Each of these banks is to open at least 25% of its branches in
areas that do not have any other bank branches (unbanked regions). A small finance bank
should hold 75% of its net credits in loans to firms in priority sector lending, and 50% of the
loans in its portfolio must be less than ₹25 lakh (US$38,000).

There are ten small finance banks

1. AU Small Finance Bank Ltd.

28
 2. Capital Small Finance Bank Ltd.
3. Equitas Small Finance Bank Ltd.
4. ESAF Small Finance Bank Ltd.
5. Fincare Small Finance Bank Ltd.
6. Jana Small Finance Bank Ltd.
7. North East Small Finance Bank Ltd.
8. Suryoday Small Finance Bank Ltd.
9. Ujjivan Small Finance Bank Ltd.
10. Utkarsh Small Finance Bank Ltd.

Banking codes and standards

Main article: The Banking codes and standards Board of India

The Banking Codes and standards Board of India is an independent and autonomous banking
industry body that monitors banks in India.To improve the quality of banking services in
India S S Tarapore (former deputy governor of RBI) had the idea to form this committee.

Adoption of banking technology

The IT revolution has had a great impact on the Indian banking system. The use of computers
has led to the introduction of online banking in India. The use of computers in the banking
sector in India has increased many fold after the economic liberalisation of 1991 as the
country's banking sector has been exposed to the world's market. Indian banks were finding it
difficult to compete with the international banks in customer service, without the use of
information technology.

The RBI set up a number of committees to define and co-ordinate banking technology. These
have included:

29
Automated teller machine growth

The total number of automated teller machines (ATMs) installed in India by various banks as of 2018 was 2,38,000. The new private sector banks in India have

the most ATMs, followed by off-site ATMs belonging to SBI and its subsidiaries and then by nationalised banks and foreign banks, while on-site is highest for

the nationalised banks of India.

Branches and ATMs of Scheduled Commercial Banks as of end December 2018

Bank type Number of branches On-site ATMs Off-site ATMs Total ATMs
Nationalised banks 33,627 38,606 22,265 60,871
State Bank of India 13,661 28,926 22,827 51,753
Old private sector banks 4,511 4,761 4,624 9,385
New private sector banks 1,685 12,546 26,839 39,385
Foreign banks 242 295 854 1,149
TOTAL 53,726 85,000 77,409 1,62,543

Cheque truncation initiative

In 2008 the Reserve Bank of India introduced a system to allow cheque truncation—the
conversion of checks from physical form to electronic form when sending to the paying bank
—in India, the cheque truncation system as it was known was first rolled out in the National
Capital Region and then rolled out nationally.

Expansion of banking infrastructure

Physical as well as virtual expansion of banking through mobile banking, internet banking,
tele banking, bio-metric and mobile ATMs etc. is taking place [42] since last decade and has
gained momentum in last few years.

30
 COMPANY PROFILE

ICICI Bank is India's largest private sector bank with total assets of Rs. 5,946.42 billion

(US$ 99 billion) at March 31, 2014 and profit after tax Rs. 98.10 billion (US$ 1,637 million)

for the year ended March 31, 2014.ICICI Bank currently has a network of 3,839 Branches

and 11,943 ATM's across India.

History

1955

The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at

the initiative of the World Bank, the Government of India and representatives of Indian

industry, with the objective of creating a development financial institution for providing

medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami

Mudaliar elected as the first Chairman of ICICI Limited.

ICICI emerges as the major source of foreign currency loans to Indian industry. Besides

funding from the World Bank and other multi-lateral agencies, ICICI was also among the

first Indian companies to raise funds from international markets.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was

reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering

31
in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of

Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by

ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at

the initiative of the World Bank, the Government of India and representatives of Indian

industry. The principal objective was to create a development financial institution for

providing medium-term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution

offering only project finance to a diversified financial services group offering a wide variety

of products and services, both directly and through a number of subsidiaries and affiliates

like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or

financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the merged entity's access
to low-cost deposits, greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking services. The merger
would enhance value for ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business
segments, particularly fee-based services, and access to the vast talent pool of ICICI and its
subsidiaries.

32
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's
financing and banking operations, both wholesale and retail, have been integrated in a single
entity

Mr. Sandeep Bakhshi, Managing Director & CEO

Mr. Sandeep Bakhshi

Managing Director & CEO

Mr. Sandeep Bakhshi is the Managing Director and CEO of ICICI Bank since October 15,

2018. Prior to his appointment as MD & CEO, he was a Wholetime Director and the Chief

Operating Officer (COO) of the Bank.

Mr. Bakhshi has been with the ICICI Group for 32 years and has handled various
assignments across the group in ICICI Limited, ICICI Lombard General Insurance, ICICI
Bank and ICICI Prudential Life Insurance.

33
He grew up in a defence services family and has attended several schools and colleges
across India before completing his management studies from XLRI in Jamshedpur.

Mr. N. S. Kannan
Executive Director, ICICI Bank Limited

Mr. N.S. Kannan is Executive Director of ICICI Bank. His responsibilities include Finance,
Treasury, Corporate Legal, Operations, Risk Management, Secretarial, Corporate
Communications, Corporate Branding and Strategic Solutions Group. He also has the
responsibility for day-to-day administration of the Compliance and Internal Audit functions.
Additionally, the President of ICICI Foundation for Inclusive Growth also reports to Mr.
Kannan.

Mr. Kannan has been with the ICICI group for over 25 years. He joined the group as a
project officer. During his tenure at the ICICI group, he also handled Project Finance,
Infrastructure Finance, Structured Finance and Treasury functions. Mr. Kannan was
Executive Director & CFO of ICICI Bank from May 1, 2009 to October 25, 2013. Prior to
this, he was Executive Director of ICICI Prudential Life Insurance Company. Before his
tenure at ICICI Prudential Life Insurance Company, Mr. Kannan was the Chief Financial
Officer and Treasurer of ICICI Bank.

Mr. Kannan is a postgraduate in management from the Indian Institute of Management,

Bangalore with a gold medal for best all-round performance. He is also a Chartered Financial
Analyst from the Institute of Chartered Financial Analysts of India and an Honours graduate
in Mechanical Engineering from National Institute of Technology (formerly Regional
Engineering College), Tiruchirappalli.

34
In 2015, Mr. Kannan was inducted as a member of the CFO Hall of Fame by CFO India
publication for an exemplary career and contribution to the world of finance. In 2013, he was
voted the Best CFO in India in a poll conducted by Finance Asia.

Mr. Vijay Chandok

Executive Director, ICICI Bank Limited

Mr. Vijay Chandok is an Executive Director on the Board of ICICI Bank. Mr. Chandok
joined the ICICI Group in 1993. In his 23 years with the ICICI Group, he has worked in
corporate banking, prior to leading the SME business and the International Banking Group.
He was also the Head of ICICI Bank’s Retail Assets and Rural & Agri Banking Group and
Vice Chairman of ICICI Home Finance Company Limited in 2008-2009. He also led the
integration of the erstwhile Sangli Bank with ICICI Bank. He is on the Board of ICICI
Investment Management Company Limited, ICICI Bank UK PLC and ICICI Bank Canada.
He also chairs the ICICI Investment Management Company which managed the Emerging
India Fund and Private Equity Fund.

Under Mr. Chandok’s leadership, ICICI Bank has won awards for being India’s Best Bank
in SME financing (private sector) in 2008 (by Dun & Bradstreet) and the Asian Banker
Award for Excellence in SME Banking in Asia Pacific, Central Asia and Gulf Region in
2009.

In the International Banking space (IBG), Mr. Chandok has been focusing on strengthening
the Bank’s franchise across overseas locations (16 locations including subsidiaries in UK &
Canada) through leveraging the economic corridors between India and the rest of the world,

35
initiating and developing banking relationships with MNC corporates and building a stable
and diversified international funding base. During his tenure, IBG has won several awards
including The Best Borrower from India by Finance Asia for four consecutive years (2012-
2015) & Dun & Bradstreet’s Best Bank in Private sector for International Business
Development consecutively for five years (2011-2015).

Ms. Vishakha Mulye

Executive Director, ICICI Bank Limited

Ms. Vishakha Mulye is an Executive Director of ICICI Bank. She is presently the head of
Wholesale Banking Group. Ms. Mulye, is a qualified Chartered Accountant, joined the ICICI
Group in 1993, and carries vast experience in the areas of strategy, treasury & markets,
proprietary equity investing and management of long-term equity investments, structured
finance, management of special assets and corporate & project finance. She led the team that
planned and executed the merger of ICICI and ICICI Bank in 2002. From 2002 to 2005, she
was responsible for the Bank's structured finance and global markets businesses, and its
financial institutions relationships. From 2005 to 2007, Ms. Mulye was the Group Chief
Financial Officer of ICICI Bank. She was elevated to the Board of ICICI Lombard General
Insurance Company in 2007. In 2009, she assumed leadership of ICICI Venture Funds
Management Company as its Managing Director & CEO.

36
She is also a member of the Aspen Institute for 'India Leadership Initiative'. Ms. Mulye was
selected as 'Young Global Leader' for the year 2007 by World Economic Forum. She was
featured in the list of 'Most Powerful Women in Indian Business' by Business Today in 2011.
She received the India CFO Award in 2006 from IMA for 'excellence in finance in a large
corporate' and CA Corporate Leader Award in 2008 from ICAI. In February 2012, she
received the GR8! Women awards from ITA for her contribution as "an Eminent Personality
in the field of Banking".

Mr. Anup Bagchi

Executive Director, ICICI Bank Limited

Mr. Anup Bagchi is an Executive Director of ICICI Bank effective February 1, 2017. Prior to
this, Mr. Bagchi was the Managing Director & CEO of ICICI Securities Limited (I-Sec),
where he led capital raising by corporates. Under his leadership, the organisation won the
prestigious Outlook Money - India’s Best e-Brokerage House for seven consecutive years. It
also won the CNBC Awaaz Consumer Award for the Most Preferred Brand of Financial
Advisory Services.

Mr. Bagchi joined the ICICI Group in 1992 and has worked in the areas of retail banking,
corporate banking and treasury. He has a management degree from the Indian Institute of
Management, Bangalore and an engineering degree from the Indian Institute of Technology,
Kanpur.

37
Mr. Bagchi has been honoured with The Asian Banker Promising Young Banker Award as
well as Business Today has recognised him as one of India's Hottest Young Executives.

Awards and Recognition

Awards - 2018
 ICICI Bank was recognised as one of the ‘Prestigious Brands of India’ in a list
published by Herald Global, a portal that features national and international news as
well as brand reviews.
 ICICI Bank was declared winner in the ‘Best Use of Data Analytics’ category at the
Retail Banker International Awards 2018. The awards are organised by Retail Banker
International, an online publication that provides news on banking and finance from
across the globe.
 ICICI Bank won at the Celent Model Bank Awards 2018 in the ‘Emerging
Innovation’ category for initiatives undertaken in the trade, finance and supply chain
segment. The awards are organised by Celent, a research, advisory and consulting
firm focused on financial services technology.
 ICICI Bank won an award in the ‘Commercial Vehicle Financers’ category at the
seventh edition of the Mahindra Transport Excellence Awards. The awards are
organised by the Truck and Bus division of the Mahindra & Mahindra Group.
 ICICI Bank won the ‘Best Retail Bank’ in India award at The Asian Banker
Excellence in Retail Financial Services International Awards 2018. The Bank has
won this award for the fifth year in a row. This year, ICICI Bank has also won an
award in ‘The Best Digital Retail Operational Risk Initiative, Application or
Programme’ category.
 ICICI Bank ranked first among private sector banks in the eighth edition of ‘The
Brand Trust Report, India Study 2018’. The study is published by TRA (formerly
Trust Research Advisory), a brand intelligence and data insights company.

38
 Ms. Chanda Kochhar was honoured with the Award for Corporate Excellence at the
eighth edition of the HELLO! Hall of Fame Awards 2018. These awards are
organised by HELLO! Magazine, published by Bennett, Coleman & Co. Ltd.
 ICICI Bank was selected as the winner in the ‘Service’ category of the MQH Best
Practices Competition organised by IMC Chamber of Commerce & Industry.
 ICICI Bank was declared winner in the ‘Most Innovative ATM Project’ category in
India at The Asset Digital Awards 2017. The awards were organised by The Asset, a
publication headquartered in Hong Kong.
 ICICI Bank was declared the Best Bank in the ‘Fintech Engagement’ category at the
Business Today – KPMG Best Bank Awards 2018. The awards were organised by the
Business Today magazine.
 ICICI Bank won the 'Best Company to Work For' Award in the Banking, Financial
Services and Insurance sector for the second year in a row. The award was organised
by the Business Today magazine. The Bank’s overall ranking was four across sectors.
It is also the first time a Bank has entered the Top 5 list in the past 5 years.
 ICICI Bank won the maximum awards at IBA Banking Technology Awards 2018; it
was the winner in four categories and the first runner-up in two categories. The
awards were organised by the Indian Banks’ Association. The Bank was declared
winner in following categories: ‘Best Use of Digital and Channels Technology’, ‘Best
Payments Initiative’, Best IT and Cyber Security Risk Initiatives’ and ‘Most
Innovative Project using IT’. ICICI Bank was declared runner-up in following
categories: ‘Best Technology Bank of the Year’ and ‘Best Use of Analytics for
Business Outcome’.
 ICICI Bank won three certificates of merit at the National Energy Conservation
Awards 2017 for demonstrating commitment to energy conservation and efficiency at
its offices. The Bank won the certificate of merit in the 'Office Buildings' category for
following buildings: ICICI Bank - Chandivli Tower in Mumbai; ICICI Bank - Empire
Tower in Lower Parel, Mumbai and ICICI Bank - Heritage Tower in Ahmedabad.
 ICICI Bank was declared the winner in India across three categories in the 2018
Euromoney Private Banking and Wealth Management Survey. The Bank was
declared winner in ‘Commercial Banking Capabilities’, ‘Net-worth-specific Services’

39
 and ‘Innovative Technology - Client Experience’ categories. The award was
organised by Euromoney, a global publication headquartered in London.
 ICICI Bank was ranked first among the private sector banks in ET 500, The
Economic Times’ list featuring top 500 Indian companies. The list is prepared based
on aggregate revenue and profits of the companies.
 ICICI Bank won an award in the ‘Environment Leadership’ category, in the service
sector at the third edition of Frost & Sullivan Project Evaluation and Recognition
Program (PERP) 2017. The bank won the award for its work done to implement
various initiatives to promote energy conservation, water conservation and use of
renewable energy across its offices in India.
 ICICI Bank won two awards at the third edition of the Datacenter Summit Awards
2017. The bank won the awards in the categories of ‘Design Management’ for
developing its data center infrastructure and ‘Cooling Management’ for
implementation of energy conservation initiatives.
 ICICI Bank won an award in the ‘Smart Data Center’ category at the Data Center
Dynamics (DCD) Global Awards 2017.
 ICICI Bank won ‘The Gold Standard Award for Corporate Communication’ across
Asia at the Gold Standard Awards 2017, for the Bank’s communication campaign
during demonetisation.
 ICICI Bank won three awards at the Finacle Client Innovation Awards. The bank won
awards in the categories: ‘Emerging Technologies Led Innovation’, ‘API Based
Innovation’ and ‘Channels Innovation’. The bank was also highly commended for the
projects submitted in the category of ‘Product Innovation’.
 ICICI Bank won an award in the ‘Excellence in Innovation’ category at the Institute
of Internal Auditors (IIA) Annual Excellence Awards 2017-2018.
 ICICI Bank won three certificates of merit in the 'Office Buildings' category at the
National Energy Conservation Awards 2017, for demonstrating commitment to
energy conservation and efficiency at its offices in Mumbai and Ahmedabad.
 ICICI Bank won an award in the ‘Re-Inventing Indian Manufacturing’ category at CII
Manufacturing Summit 2017. The bank won the award for the project titled ‘RAINS’-

40
 Robotic Arm In Note Sorting. The application is the first-of-its-kind initiative using
an industrial robot in note sorting.
 ICICI Bank was conferred with the Certificate of Excellence in ‘Corporate Energy
Management’ category at the AEE (Association of Energy Engineers) Western India
Chapter Awards.
 ICICI Bank was awarded a 4 star rating in the ‘Services Sector’ category at
Confederation of Indian Industry (CII) Southern Region - Environment, Health and
Safety (EHS) Excellence Awards 2017.

2017

 Received the Woodrow Wilson Award for Global Corporate Citizenship by the
Woodrow Wilson Centre located in Washington, U.S.A. She is the first leader to
receive this award.
 Featured in Business World magazine’s ‘BW’s Most Influential Women’ list as an
Evergreen Woman Leader
 Voted the ‘Favorite Female Business Icon’ by women professionals aged 29 years
and above, according to a nationwide survey conducted by Talentedge, a Delhi based
education technology firm

2016

 Ranked 5th in Fortune’s list of 'Most Powerful Women International 2016' comprising
of 50 influential women outside the U.S.
 Featured in Forbes list of 'The Worlds 100 Most Powerful Women 2016'
 Ranked 10th on Forbes list of 'The Worlds Most Powerful Women In Finance 2016'
 Ranked 40th on India Today's 'High and Mighty Power List 2016'
 Ranked 22nd in the Forbes Asias '50 Power Businesswomen 2016' list

2015

 Named as one of TIME magazines 100 Most Influential People in the world
 Ranked 36th in the Forbes list of World's 100 Most Powerful Women
 Featured in Forbes list of Asia's Power Women 2015

41
  Ranked 1st in Fortune's list of 'Most Powerful Women of Asia- Pacific'.
 Ranked 2nd in Fortune India's list of 'Most Powerful Women in Business'.
 Awarded the 'Asia Game Changer Award' by the Asia Society
 Featured in CNBC TV18's 'Top 15 Indian Business Icons'

2014

 Awarded the 'Banker of the Year' by Zee Business

 Ranked 2nd in Fortune's list of 'Most Powerful Women of Asia – Pacific'. She is the
highest ranked woman from India, on this list.
 The highest ranked woman featured in India Today's 'High and Mighty Power List
2014'
 Featured in The Telegraph (UK) list of 11 most important women in finance
 Ranked 2nd in Fortune India's list of 'Most Powerful Women in Business'.
 Ranked 43rd in the Forbes list of 'The World's 100 Most Powerful Women'
 Awarded for 'Excellence in Banking' at the 'Mumbai Women of the Decade
Achievers Awards' organized by ASSOCHAM

2013

 Ranked 1st for the third consecutive year, in Fortune India's list of most powerful
business women
 Conferred with the 'Best CEO – Private Sector' at the Forbes India Leadership
Awards
 Ranked 4th, in Fortune's international list of '50 Most Powerful Women in Business'
 Awarded the Transformation Leader Award by NDTV Profit Business Leadership
Awards 2012
 Ranked 65th in the Forbes list of 'The World's 100 Most Powerful Women'
 Featured in the Power List of 25 most powerful women in India, by India Today, for
the third year in a row
 The only Indian to be featured in the Dow Jones list of Most Influential Female
Executives in the World of the last decade. She is ranked 12th in the global list.

42
  Awarded the Businessperson Of The Year 2012 by Business India. She is the first
woman recipient of this award in 31 years
 Recipient from India of the 4th Asian Corporate Director Recognition Awards 2013

2012

 Topped the list of '50 Most Powerful Women in Business' by Fortune India
 Ranked 18th in Fortune's list of 2012 Businesspersons of the Year'. This is Fortune's
annual ranking of 50 global leaders who are 'the best in business'.
 Ranked 5th, for the second consecutive year in Fortune's international list of '50 Most
Powerful Women in Business'
 Ranked 59th in the Worlds 100 Most Powerful Women by Forbes
 Named amongst the nine Indian women in the Forbes' inaugural 'Asia Power
Businesswomen' list
 Conferred with CNBC Asias India Business Leader of the Year award
 Named the 'Business Person of the Year' by Business India. Ms. Kochhar is the first
woman to receive this award that was instituted 31 years ago.
 Named amongst the '25 most powerful professional women' in the country by India
Today for the second year

2011

 Ranked 5th by Fortune in the International list of '50 Most Powerful Women in
Business'
 Ranked 17th among the '25 Most Powerful CEOs' in Asia by Fortune
 Ranked 43rd 'Most Powerful Woman' in the world by Forbes
 Named among the '50 most influential people in global finance” by Bloomberg
Markets magazine
 Named among the 'Two best Indian CEOs' in an annual poll by Finance Asia
 Ranked 10th by Financial Times in the 'Top 50 Women in World Business'
 Received the 'Global Leadership Award' from the US-India Business Council
 Named 'Most Powerful Woman in Indian Business' by Fortune India

43
  The first woman to be named as the 'Business Leader of the Year' by The Economic
Times
 Featured in the 'Hall Of Fame - Most Powerful Women in Indian Business' by
Business Today

2010

 Ranked 10th in the list of 'Most Powerful Women in Business' by Fortune

 Ranked 92nd in the list of 'Most Powerful Women' in the world by Forbes
 Conferred with the 'Outstanding Woman Business Leader of the Year' award by
CNBC TV18
 Conferred with the 'Banker of the Year Award' by Financial Express
 Featured in the list of '30 Most Powerful Women Leaders' in Business Today for
eight consecutive years from 2002 to 2010

44
 CHAPTER-IV
DATA ANALYSIS INTERPRETATION

45
ANALYSIS

Current Ratio
Table.1

Year Current Assets(Rs.) Current Liabilities(Rs.) Ratio

2014-2015 43027422 23678462 1.82
2015-2016 39741780 21724020 1.83
2016-2017 37381285 15264863 2.45
2017-2018 30138213 13071235 2.31
2018-2019 28732051 12573160 2.29
Source: Annual Reports

Source: Table-1
Interpretation:

The current ratio of the firm for the 5 years is shown in the above table and graph. The ratio
was ranging from 1.82 to 2.45. so the firm was maintaining required current assets for its
current liabilities. From the years 2015 to 2019 the ratio was above the standard norm i.e.,
2:1.

46
Quick Ratio:

Table-2
Quick Assets (Rs.)
Year (Current assets-Inventory) Current liabilities (Rs.) Ratio
2014-2015 17053156 23678462 0.72
2015-2016 17432438 21724020 0.80
2016-2017 17300363 15264863 1.13
2017-2018 11319800 13071235 0.87
2018-2019 10917160 12573160 0.87
Source: Annual Reports

Graph.2

Interpretation:

The above table and graph shows the quick ratio of the firm for five years from 2014-2015
the ratio was ranging from 0.72 to 1.13. The firm was maintaining quick ratio nearer to the
standard norm i.e., 1:1. In the year 2019 the ratio was above the standard norm this is due to
decrease in current liabilities.

47
 Absolute Quick Ratio:
Table-3

Cash +Marketable Current

Year Securities(Rs.) Liabilities(Rs.) Ratio
2014-2015 1014124 + 701500 23678462 0.07
2015-2016 497598 + 701500 21724020 0.06
2016-2017 443581 + 701500 15264863 0.08
2017-2018 443775 + 701500 13071235 0.09
2018-2019 443385 + 701500 12573160 0.09
Source: Annual Reports
Graph.3

Source: Table-3

Interpretation:

The cash ratio for 5 years from 2014 to 2018 was in the above table and graph. The ratio was
low in all years of the study. The ratio was ranging from 0.06 to 0.09, which is very low
when compared with the standard norm i.e., 1:2 or 0.5:1.

48
Inventory Measure

Table-4
Current Assets - Inventory Average Daily Expenses
Year (Quick Assets)(Rs.) (Op.Exp-Dep) Days
2014-2015 17053156 112915 151
2015-2016 17432438 64174 272
2016-2017 17300363 64631 268
2017-2018 11319800 67426 168
2018-2019 10917160 144628 76

Source: Annual Reports

Graph.4

Source: Table -4

Interpretation:

The table and graph shows the interval measure (i.e., the firm’s ability to meet its daily
operations if it does not receive any cash) of the firm for 5 years. It was ranging from 76 days
to 272 days. The ratio was in decreasing trend since 2015 this is due to increase in average
daily expenses.

49
 Debt Equity Ratio

Table-5
Year Long Term Liabilities(Rs.) Share Holders Funds(Rs.)Ratio
2014-2015 133331222 24208932 5.51
2015-2016 136526596 5333707 25.60
2016-2017 145963595 -14905262 -9.80
2017-2018 138274921 -35028886 -3.95
2018-2019 141966474 -57879842 -2.50

Source: Annual Reports

Graph:5

Source: Table-5

Interpretation:

The debt equity ratio of the firm was showed in the above table and graph. The ratio was 5.51
and 25.60 in the years 2015 and 2017 respectively, later it was gone to negatives figures
because the shareholders funds went to negatives due to huge losses since 2019.

50
Proprietary Ratio

Table-6
Equity Share Holders Total Tangible
Year Funds(Rs.) Assets(Rs) Ratio
2014-2015 24208932 131828723 0.18
2015-2016 5333707 120127493 0.04
2016-2017 -14905262 108686879 -0.14
2017-2018 -35028886 92363687 -0.38
2018-2019 -57879842 81877407 -0.71
Source: Table-6
Source: Annual Reports
Graph:6

Interpretation:

The proprietary ratio is shown in the above table and graph for the period of the study. The
ratio was 0.18 and 0.04 in the years 2015 and 2016 respectively, later it gone to negative
figures, because the equity shareholders are not having any funds belonging to them.

51
Capital Gearing Ratio:

Table-7
Funds Bearing Fixed Equity Shareholders
Year Interest & Dividend(Rs.) Funds(Rs. Ratio
2014-2015 133331222 24208932 5.507522
2015-2016 136526596 5333707 25.59694
2016-2017 145963595 -14905262 -9.79276
2017-2018 138274921 -35028886 -3.94745
2018-2019 141966474 -57879842 -2.45278
Source: Annual Reports
Graph:7

Source: Table-7

Interpretation:

The capital gearing ratio of the firm was shown in the above table and graph. The ratio was
5.5 and 25.5 in the years 2018 and 2019 respectively, later it was gone into negatives figures
due to there are no funds are belonging to equity shareholders, due to huge losses since 2015

52
Fixed Assets Ratio:

Table-8

Year Fixed Assets Capital Employed Ratio

2014-2015 88801301 125997768 0.71
2015-2016 80385713 110881618 0.73
2016-2017 71305594 100610502 0.71
2017-2018 62225474 73305592 0.85
2018-2019 53045356 54653558 0.97
Source: Annual Reports
Source: Table -8

Graph:8

Interpretation:

The fixed assets ratio of firm for 5 years is shown in the above table and graph. The ratio was
ranging from 0.71 to 0.97. It was increasing from 2018 but it less than 1, so the firm was
raising adequate long-term funds to meet the fixed assets requirements.

53
Debt Ratio

Table-9

Year Total Debt(Rs.) Capital Employed(Rs.) Ratio

2014-2015 133331222 125997768 1.058203
2015-2016 136526596 110881618 1.231283
2016-2017 145963595 100610502 1.450779
2017-2018 138274921 73305592 1.886281
2018-2019 141966474 54653558 2.597571
SOURCE: ANNUAL REPORTS
Grapg:9

Source: Table -9

Interpretation:

The debt ratio for 5 years is shown in the above table and graph. The ratio was increasing in
trend; it shows that the portion of debt in the capital structure was increasing. So debt portion
is more than the equity.

54
Inventory Turnover Ratio

Table-10

Year Cost Of Goods Sold(Rs.) Average Stock(Rs.) Ratio

2014-2015 88735466 837648 106
2015-2016 40431855 150632 268
2016-2017 36833098 181677 203
2017-2018 14402048 196286 73
2018-2019 9541652 85306 112

Source: Annual Reports

Source: Table -10

Interpretation:

Inventory turnover ratio is calculated and shown in the above table and graph for 5 years. It
was high in the year 2016 (268 times) and low in the year 2018 (73 times). It shows that the
firms inability to convert the stock into sales.

55
Working Capital Turnover Ratio

Table-11

Year Sales(Rs.) Working Capital(Rs.) Ratio

2014-2015 89581746 19348960 4.63
2015-2016 53944973 18017760 2.99
2016-2017 49219648 22116422 2.23
2017-2018 18272635 17066978 1.07
2018-2019 12353450 16158891 0.76
Source: Annual Reports
Graph;11

Source: Table -11

Interpretation:

The working capital turnover ratio is the firm for 5 years is shown in the above table and
graph. The ratio was decreasing in trend, it was 4.63 in the year 2014 and 0.76 in the
year2018, it shows that the firm’s inefficient utilization of working capital

56
Fixed Assets Turnover Ratio

Table-12
year Net Sales(Rs.) Fixed Assets(Rs.) Ratio
2014-2015 89581746 88801301 1.01
2015-2016 53944973 80385713 0.67
2016-2017 49219648 71305594 0.69
2017-2018 18272635 62225474 0.29
2018-2019 12353450 53045356 0.23
Source: Annual Reports
Graph: 12

Source: Table -12

Interpretation:

The above table and graph shows the fixed assets turnover ratio of the firm during the period
of the study. The ratio was in decreasing trend. It was 1.01 in the year 2014 and 0.23 in the
year 2018. It shows that the firm is under utilizing the fixed assets in generating output

57
Debtors Turnover Ratio

Table-13

Sales(Rs.)
Year {Credit} Debtors(Rs.) Ratio
2014-2015 89581746 16039032 5.59
2015-2016 53944973 16934840 3.19
2016-2017 49219648 16856782 2.92
2017-2018 18272635 10876025 1.68
2018-2019 12353450 10473775 1.18
Source: Annual Reports
Graph:13

Source: Table -13

Interpretation:

The debtor’s turnover ratio for the period of the study is shown in the above table and graph.
It shows a decreasing trend. It was 5.59 in the year 2014 and 1.18 in the year 2018.It shows
that firms inefficient management of debtors.

58
Debtors Collection Period

Table-14
NO: Of Working Days in a
Year Year Debtors Turnover Ratio Days
2014-2015 360 5.59 64
2015-2016 360 3.19 113
2016-2017 360 2.92 123
2017-2018 360 1.68 214
2018-2019 360 1.18 305

Source: Annual Reports

Source: Table -14

Interpretation:

The above table and graph exhibits the debtor’s collection period for the period of the study.
The ratio is in increasing trend, it was 64 days in the year 2015 and 305 days in the year2019.
It shows that the firm was failed to collect dues from the debtors

59
Creditors Turnover Ratio:

Table-15

Purchases(Rs.)
Year (credit) Creditors(Rs.) Ratio
2014-2015 29247740 22294037 1.31
2015-2016 16807425 20076999 0.84
2016-2017 16449922 13501536 1.22
2017-2018 5347331 10978377 0.49
2018-2019 1711249 10480302 0.16

Source: Annual Reports

Graph:15

Source: Table -15

Interpretation:

Creditors turnover ratio of the firm was shown in the above table and graph for the period of
study. The ratio was in decreasing trend, it was 1.31 in the year 2014 and 0.16 in the year
2018. It shows that the firm was taking more time to pay due amount.

60
Creditors Payment Period

Table-16

No: of Working Days in a Creditors Turnover

Year Year Ratio Days
2014-2015 360 1.31 274
2015-2016 360 0.84 429
2016-2017 360 1.22 295
2017-2018 360 0.49 1252
2018-2019 360 0.16 2250
Source: Annual Reports

Source: Table -16

Interpretation:

The creditor’s payment period for the period of study are shown in the above table and also
represented graphically. The ratio shows an increasing trend, it was 274 days in the year
2019 and 2250 days in the year 2018. It means that the firm was taking more time to pay due
amount.

61
Capital Employed Ratio

Table-17

Year Sales(Rs.) Capital Employed Ratio

2014-2015 89581746 125997768 0.71
2015-2016 53944973 110881618 0.48
2016-2017 49219648 100610502 0.48
2017-2018 18272635 73305592 0.24
2018-2019 12353450 54653558 0.22

Source: Annual Reports

Graph: 17

Source: Table -17

Interpretation:

Capital employed ratio of the firm for 5 years are shown in the above table and graph.
It was decreasing in trend during period of the study. It is 0.71 in the year 2015 and 0.22 in
the year2019. It shows that the firm is not able to generate more profits.

62
 Gross Profit Ratio

Table-18

year Gross Profit(Rs.) Sales(Rs.) Ratio

2014-2015 846280 89581746 0.94
2015-2016 13513118 53944973 25.05
2016-2017 12386550 49219648 25.17
2017-2018 3870587 18272635 21.18
2018-2019 2811798 12353450 22.76

Source: Annual Reports

Graph: 18

Source: Table -18

Interpretation:
The gross profit ratio of the company was in the above table and graph for
the period of study. In the year 2015 it was 0.94% on sales later it was more then 20% of
sales due to less cost of goods sold. Highest in the year 2017 was 25.17% on sales.

63
Operating Profit Ratio

Table-19
Year Operating Profit(Rs.) Sales(Rs.) Ratio(Rs.)
2014-2015 -27726107 89581746 -30.95
2015-2016 -4516456 53944973 -8.37
2016-2017 -6874155 49219648 -13.96
2017-2018 -16626285 18272635 -90.99
2018-2019 -10195353 12353450 -82.53

Source: Annual Reports

Graph:19

Source: Table -19

Interpretation:
Operating profit of the firm for 5 years is exhibited in the above table and graph.
The ratio for period of study was always shows a negative figure, this is due to high
operating expenses incurred by firm.

64
Operating Expenses Ratio

Table-20

Year Operating Expenses(Rs.) Sales(Rs.) Ratio

2014-2015 28572387 89581746 31.89
2015-2016 18029574 53944973 33.42
2016-2017 19260705 49219648 39.13
2017-2018 20496872 18272635 112.17
2018-2019 13007151 12353450 105.29

Source: Annual Reports

Graph: 20

Source: Table -20

Interpretation:

The above table and graph shows the operating expenses ratio of the firm for 5
years. The ratio was in increasing trend, it was 31.89 % on sales in the year 2015 and
105.29% on sales in the year 2019. it means that the firm incurring operating expenses more
than the sales.

65
Operating Ratio

Table-21

Year Cost Of Goods Sold+Operating Expenses(Rs.) Sales(Rs.) Ratio

2014-2015 88735466 + 28572387 89581746 130.95
2015-2016 40431855 + 18029574 53944973 108.37
2016-2017 36833098 + 19260705 49219648 113.96
2017-2018 14402048 + 20496872 18272635 190.99
2018-2019 95416552 + 13007151 12353450 182.53
Source: Annual Reports
Graph:21

Source: Table -21

Interpretation:

The operating ratio of the firm was shown in the above table and graph. The ratio
was more than 100% of sales, so the firm is not getting any margin on the sales. It 130.95%
on sales in the year 2015 and 182.53% on sales in the year 2019.

66
Non-Operating Income Ratio

Table-22

Non-Operating
Year Expenses(Rs.) Sales(Rs.) Ratio
2014-2015 1614969 89581746 1.8
2015-2016 - 53944973 -
2016-2017 624840 49219648 1.27
2017-2018 9425630 18272635 51.58
2018-2019 231372 12353450 1.87
Source: Annual Reports
Graph:22

Source: Table -22

Interpretation:

The non-operating income of the firm is shown in the above table and graph.
The ratio was normal in all years of the study except in the year 2019 it was 51.58% on sales.

67
Net Profit Ratio {Profit after Tax}

Table-23
Net Profit(Rs.)
year {PAT} Sales(Rs.) Ratio
2014-2015 -46968496 89581746 -52.43
2015-2016 -18784731 53944973 -34.82
2016-2017 -19335877 49219648 -39.28
2017-2018 -20057251 18272635 -109.77
2018-2019 -22802728 12353450 -184.59
Source: Annual Reports

Graph:23

Source: Table -23

Interpretation:

The net profit of the firm for 5 years is shown in the above table and graph. The firm
is not getting any profit after tax during the period of the study due high expenses.

68
Finds Analysis:

1. Equity plus pension fund

2. Equity mid cap fund
3. Balanced plus pension fund
4. Equity premium fund.
Analysis:
Equity plus pension fund

Months NAV (High) Rs. NAV(low) Rs.

April 2018 13.45 12.75
May 2018 14.25 13.20
June2018 15.00 14.12
July 2018 15.25 13.25
August 2018 15.75 13.50
September 2018 15.80 14.50
October2018 16.25 14.35
November 2018 16.85 15.25
December 2018 17.20 14.50
January 2019 18.00 16.25
February 2019 18.25 16.50
March 2019 18.75 17.25

Source: Equity Plus Pension Fund

Interpretation:
The above graph explained the NAV of equity plus pension fund was amount at 10/-
the month of January 2018 But the end of the year it has raised to 17/-.
Similarly the year 2018 Jan it was at 18/- however at the end of the year it has
included in 24/-

69
Equity mid Cap Fund

Months NAV (High) Rs. NAV(low) Rs.

April 2018 10.5 8.5
May 2018 11.2 9.4
June2018 12.6 9.7
July 2018 11.7 8.4
August 2018 12.7 9.5
September 2018 14.7 9.5
October2018 13.6 9.4
November 2018 13.6 9.5
December 2018 14.7 9.6
January 2019 12.7 9.6
February 2019 14.6 8.9
March 2019 13.9 9.6

Interpretation:

The above graph explained the NAV of equity plus pension fund was amount at 12.7
the month of January 2018 but the end of the year it has raised to 10.5.
Similarly the year 2018 Feb it was at13.6.
This shows transfer performance Equity mid cap fund and there was 100% growth
rate in the value of NAV in the year 2019 compare to the NAV had provide a value of
return to all ulips investor.

70
 Balanced Plus Premium Fund

Months NAV (High) Rs. NAV(low) Rs.

April 2018 12.7 9.6
May 2018 13.6 10.6
June2018 14.9 12.6
July 2018 13.2 10.9
August 2018 13.9 9.9
September 2018 12.9 8.6
October2018 13.6 10.4
November 2018 12.6 9.1
December 2018 14.7 10.6
January 2019 13.9 12.6
February 2019 14.9 11.9
March 2019 13.6 10.7

Interpretation:

The above graph explained than the NAV of equity plus pension fund was amount at
12.7 the month of January 2018 but the end of the year it has raised to 14.9
Similarly the year 2018 Jan it was at 13.9 however at the end of the year it has
included in 13.6This shows transfer performance equity premium fund and there was
100% growth rate in the value of NAV in the year 2019 compare to the NAV had provide
a value of return to all ulips investor.

71
 Cash Plus Pension Premium Fund

Months NAV (High) Rs. NAV(low) Rs.

April 2018 12.7 9.6
May 2018 14.6 10.6
June2018 13.9 9.7
July 2018 14.1 10.9
August 2018 13.9 12.0
September 2018 14.1 11.7
October2018 13.7 10.6
November 2018 13.9 11.7
December 2018 14.7 10.9
January 2019 13.8 10.9
February 2019 13.9 11.7
March 2019 14.7 12.9

Balanced Plus Premium Fund Year

2017-18

16
14
12
NAV (High)
10
Rs.
8
NAV(low) Rs.
6
4
2
0
86
18

9
8
8

-1
-1
r-1

-1
-1
n-

b
ec
ct
g
Ap

Ju

Fe
Au

Interpretation:

The above graph explained than the NAV of equity plus pension fund was amount at
12.7the month of January 2018 But the end of the year it has raised to 13.9

72
 Similarly the year 2018 Jan it was at 13.8/- however at the end of the year it has included in
14.7-
This shows transfer performance equity premium fund and there was 100% growth
rate in the value of NAV in the year 2019 compare to the NAV had provide a value of return
to all ulips investor.

73
CHAPTER-V

74
 FINDINGS

After proper analysis of the financial position of the Bajaj Allianz Life Insurance Company
Ltd with the help of financial analysis tools, the following findings are found during the
analysis.

 The company was getting the operating loss for the present 2015-2019 years.
 It is found that the company getting good percentage of gross profit on sales.
This is due to less cost of goods sold.
 The operating expenses were very high in the years 2013-14 to 2018-19
in proportion to sales.
 It is found that the debtors’ turnover is decreasing since last five years; it will
affect the working capital structure of the company.
 It is found that for collecting debts from debtors’ was taking more time, so the
company is failed to collect dues from the debtors’,
 The creditors’ turnover is very low; it means that the company is filed to pay
the credit amount to the creditors’ with in the stipulated time allotted by
creditors’. This will result in high interest charges, which adversely affect the
profitability.
 The quick ratio of firm was up to standard in the year 2014 in remaining years
the firm was not maintaining quick assets to meet current liabilities.
 The current ratio of the company was good, it possess 2 rupees of amount for
every 1 rupee of debt.
 The outsiders’ funds are more than the equity shareholders funds in the firm.
From 2014-15 to 2018-19 the equity shareholders are not having any funds
belonging to them, Due to huge losses.
 The firm has raised adequate long-term funds to meet the fixed assets.

75
SUGGESTION

After proper analysis of the financial position of the company and according to the findings
found in the analysis, the following are some the suggestions recommended to the company
for better performance.

 It is suggested to take measures for collecting dues from the debtors, by allowing
discounts.

 It is suggested to pay the dues to the creditors as earlier as possible, because delay
will incurs more interest charges.

 It is suggested to reduce the unnecessary administration expenses in the company,

because it affects the profitability.

 The company should improve its profitability position by making more number of
ULIPs and by inventory in the potential industries which provides good returns in
the investment.

 The company should improve it market share by introducing variety of ULIPs and
by providing goods returns of the innovators.

 The company should reduce the handling charges to have the alteration of all the
ULIPs innovator.

 The company should try to maintain or return and increase their customers by
providing more goods no. of policies which leads to higher market share.

76
CONCLUSION
Financial performance takes into consideration financial and non-financial data. It
includes:

Review of an organization policies, procedures, and processes Examination of the latest

auditor’s report.

Review of letters from governmental entities such as the IRS

Analysis of footnotes and additional information accompanying the financial statements
Analyzing various relationships among components of the financial performance.

Financial performance provides a clear understanding of the organization SWOT

(Strengths, Weaknesses, Opportunities, and Threats) since it should be performed in
conjunction with other valuation techniques and in comparison with other organizations
within the same industry in which the entity operates. When analyzing ratios, the main
purpose is to infer conclusions about the solvency, operational efficiency, and
profitability of a firm.

Evaluation of Solvency - It covers both short and long-term solvency.

Short-term solvency is the ability of a firm to meet its current obligations as they
mature. Short-term creditors such as banks and vendors are interested in the following
ratios:

77
 BIBLIOGRAPHY

A Books Referred
1. Jain and Khan, Financial Management 4 th edition, Sultan Chand and Company
Limited, Agra 2004
2. Kothari C.R, Research Methodology, Willy Eastern company Limited, Kolkotta 2002
3. Krishnaswamy O.R, Methodology of Research in Social Sciences, Himalaya
Publishing House, Mumbai 1993
4. Prasanna Chandra, Financial Management, Tata McGraw Hill Company Limited,
Delhi 2004

B. Periodicals / Journals / Reports Referred

1. Company’s Annual Report
2. Business Today
3 Economic Times
4 Journal of Finance
5 Business Standard

78