FINANCIAL AND FUNDAMENTAL ANALAYSIS ON ICICI BANK

Ankit Jaiswal
521129497 BBA, 6th Sem Page 1
FINANCIAL & FUNDAMENTAL ANALYSIS ON ICICI BANK

Ankit Jaiswal
AMBIT
P-178, C.I.T. ROAD, SCHEME VI-M, KANKURGACHI
KOLKATA- 700 054
LEARNING CENTER: 02737
FINANCIAL & fundamental ANALYSIS ON ICICI BANK
BY
ANKIT JAISWAL
Reg. No. 521129497
A project report submitted in partial fulfilment of the requirements for the degree of BBA of 2011 - 2014 batches in
GENERAL of Sikkim Manipal University, INDIA
Sikkim Manipal University of Health, Medical and Technological Sciences
Distance Education Wing
Synidicate House
Manipal - 576 104
STUDENT’S DECLARATION
I hereby declare that the project report entitled
FINANCIAL & fundamental ANALYSIS ON ICICI BANK

Ankit Jaiswal
submitted in partial fulfilment of the requirements for the degree of BBA of 2011 -
2014 batch in GENERAL to Sikkim Manipal University , India , is my original
work and not submitted for the award of any other degree, diploma , fellowship ,
or any other similar title or prizes.
PLACE: KOLKATA ANKIT JAISWAL
DATE: Reg. No. 521129497

Ankit Jaiswal
EXAMINER'S CERTIFICATION
The project report of
ANKIT JAISWAL
Reg. No. 521129497
Is approved and is acceptable in quality and form
INTERNAL EXAMINER EXTERNAL EXAMINER

Ankit Jaiswal
UNIVERSITY STUDY CENTRE CERTIFICATE
This is to certify that the project report entitled
submitted in partial fulfilment of the requirements for the degree of BBA of 2011 -
2014 batch in GENERAL of Sikkim Manipal University of Health , Medical and
Technological Sciences
ANKIT JAISWAL
Reg. No. 521129497
has worked under my supervision and guidance and that no part of this report has
been submitted for the award of any other degree , diploma , fellowship or other
similar titles or prizes and that the work has not been published in any journal or
magazine.

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Certified
ACKNOWLEDGEMENT
I would like to express my special thanks to my teacher Mr. Abhisek Jain as well as our
study centre, AMBIT who gave me the golden opportunity to do this project on the
topic FINANCIAL ANALYSIS ON AXIS BANK which also helped me in doing a lot
of research and i came to know about so many new things. I am really thankful to them.
Secondly, I would also like to thank my parents a lot in finalizing this project within the
limited time frame.
Submitted By Supervised By
Ankit Jaiswal Mr. Abhishek Jain
Roll No-521129497 MBA

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TABLE
CONTENTS Sr.no
TITLE Page no.
1. Introduction to financial analysis 6
2. Economic analysis 14
3. Industry analysis 17
4. Company analysis 26
5. Research methodology 33
6. Data analysis 36
a) Economic
38
b) Industry
45
c) Company
52
7. Finding & Limitations 72
8.s Conclusion & Suggestion 76
9. Bibliography 80

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INTRODUCTION TO FINANCIAL & FUNDAMENTAL ANALYSIS
What is analysis?
The examination and evaluation of the relevant information to select the best course of action from
among various alternatives. The methods used to analyze securities and make investment decisions

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fall into two very broad categories: fundamental analysis and technical analysis. Fundamental
analysis involves analyzing the characteristics of a company in order to estimate its value. Technical
analysis takes a completely different approach; it doesn't care one bit about the "value" of a
company or a commodity. Technicians (sometimes called chartists) are only interested in the price
movement in the market.
What is technical analysis?
Technical analysis is a method of evaluating securities by analyzing the statistics generated by
market activity, such as past prices and volume. Technical analysts do not attempt to measure a
security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest
future activity.
What is financial & fundamental analysis?
A financial analyst researches macroeconomic and microeconomic conditions along with company
fundamentals to make business, sector and industry recommendations. They also often recommend
a course of action, such as to buy or sell a company's stock based upon its overall current and
predicted strength. An analyst must be aware of current developments in the field in which he or she
specializes as well as in preparing financial models to predict future economic conditions for any
number of variables.
Fundamental Analysis involves examining the economic, financial and other qualitative and
quantitative factors related to a security in order to determine its intrinsic value. It attempts to study
everything that can affect the security's value, including macroeconomic factors (like the overall
economy and industry conditions) and individually specific factors (like the financial condition and
management of companies). Fundamental analysis, which is also known as quantitative analysis,
involves delving into a company’s financial statements (such as profit and loss account and balance
sheet) in order to study various financial indicators (such as revenues, earnings, liabilities, expenses
and assets). Such analysis is usually carried out by analysts, brokers and savvy investors.
Two analytical models
When the objective of the analysis is to determine what stock to buy and at what price, there are two
basic methodologies
1. Fundamental analysis maintains that markets may misprice a security in the short run but that
the "correct" price will eventually be reached. Profits can be made by purchasing the
mispriced security and then waiting for the market to recognize its "mistake" and reprice the
security.
2. Technical analysis maintains that all information is reflected already in the stock price.
Trends 'are your friend' and sentiment changes predate and predict trend changes. Investors'

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emotional responses to price movements lead to recognizable price chart patterns. Technical
analysis does not care what the 'value' of a stock is. Their price predictions are only
extrapolations from historical price patterns.
Investors can use any or all of these different but somewhat complementary methods for stock
picking. For example many fundamental investors use technical for deciding entry and exit points.
Many technical investors use fundamentals to limit their universe of possible stock to 'good'
companies.
How does financial analysis works?
Financial analysis is carried out with the aim of predicting the future performance of a company. It
is based on the theory that the market price of a security tends to move towards its 'real value' or
'intrinsic value.' Thus, the intrinsic value of a security being higher than the security’s market value
represents a time to buy. If the value of the security is lower than its market price, investors should
sell it.
The steps involved in financial analysis are:
1. Macroeconomic analysis, which involves considering currencies, commodities and indices.
2. Industry sector analysis, which involves the analysis of companies that are a part of the
sector.
3. Situational analysis of a company.
4. Financial analysis of the company.
5. Valuation
The valuation of any security is done through the discounted cash flow (DCF) model, which takes
into consideration:
1. Dividends received by investors
2. Earnings or cash flows of a company
3. Debt, which is calculated by using the debt to equity ratio and the current ratio (current
assets/current liabilities)
1. Financial Analysis Tools
These are the most popular tools of fundamental analysis.
Earnings per Share – EPS.

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Price to Earnings Ratio – P/E.
Projected Earnings Growth – PEG.
Price to Sales – P/S.
Price to Book – P/B
Dividend Payout Ratio.
Dividend Yield.
Book Value.
Return on Equity Ratio analysis.
A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values
taken from an enterprise’s financial. Often used in accounting, there are many standard ratios used
to try to evaluate the overall financial condition of a corporation or other organization. Financial
ratios may be used by managers within a firm, by current and potential shareholders (owners) of a
firm, and by a firm's creditors. Financial analysts use financial ratios to compare the strengths and
weaknesses in various companies. If shares in a company are traded in a financial market, the
market price of the shares is used in certain financial ratios.
Ratios can be expressed as a decimal value, such as 0.10, or given as an equivalent percent value,
such as 10%. Some ratios are usually quoted as percentages, especially ratios that are usually or
always less than 1, such as earnings yield, while others are usually quoted as decimal numbers,
especially ratios that are usually more than 1, such as P/E ratio; these latter are also
called multiples. Given any ratio, one can take its reciprocal; if the ratio was above 1, the reciprocal
will be below 1, and conversely. The reciprocal expresses the same information, but may be more
understandable: for instance, the earnings yield can be compared with bond yields, while the P/E
ratio cannot be: for example, a P/E ratio of 20 corresponds to an earnings yield of 5%.
In general, there are 4 kinds of financial ratios that a financial analyst will use most frequently, these
are:
Performance ratios
Working capital ratios
Liquidity ratios
Solvency ratios
These 4 financial ratios allow a good financial analyst to quickly and efficiently address the
following questions or concerns:
Performance ratios:

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What return is the company making on its capital investment? What are its profit margins?
Working capital ratios:
How quickly are debts paid? How many times is inventory turned?
Liquidity ratios:
Can the company continue to pay its liabilities and debts?
Solvency ratios (Longer term):
What is the level of debt in relation to other assets and to equity? Is the level of interest payable out
of profits?
Why only financial analysis is important?
Financial analysis is an aspect of the overall business finance function that involves examining
historical data to gain information about the current and future financial health of a company.
Financial analysis can be applied in a wide variety of situations to give business managers the
information they need to make critical decisions. The ability to understand financial data is essential
for any business manager. Finance is the language of business. Business goals and objectives are set
in financial terms and their outcomes are measured in financial terms. Among the skills required to
understand and manage a business is fluency in the language of finance—the ability to read and
understand financial data as well as present information in the form of financial reports.
The finance function in business involves evaluating economic trends, setting financial policy, and
creating long-range plans for business activities. It also involves applying a system of internal controls
for the handling of cash, the recognition of sales, the disbursement of expenses, the valuation of
inventory, and the approval of capital expenditures. In addition, the finance function reports on these
internal control systems through the preparation of financial statements, such as income statements,
balance sheets, and cash flow statements.
Finally, finance involves analyzing the data contained in financial statements in order to provide
valuable information for management decisions. In this way, financial analysis is only one part of the
overall function of finance, but it is a very important one. A company's accounts and statements
contain a great deal of information. Discovering the full meaning contained in the statements is at the
heart of financial analysis. Understanding how accounts relate to one another is part of financial

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analysis. Another part of financial analysis involves using the numerical data contained in company
statements to uncover patterns of activity that may not be apparent on the surface.
Objective of the study
 To analyze economy by using some economic indicators like GDP, and inflation rate etc for
the selected period of 5 years.
 To analyze the industry especially private bank industry for the selected period of 5 years.
 To carry out financial and non-financial analysis of ICICI bank as a whole for the selected
period.
DATA SOURCES
Secondary data has been collected from various sources to analyze the fundamentals. The
secondary data has been collected from
 Books
 ACE equity database
 Internet-websites
PERIOD OF STUDY: The period of study for the analysis is five years from 2006-2010.
CHAPTER PLAN:
It is proposed to divide the project into following chapters.
CHAPTER 1: INTRODUCTION TO STUDY
This chapter will be introductory in nature covering the relevance of study.
CHAPTER 2: CONCEPTUAL FRAMEWORK OF FUNDAMENTAL ANALYSIS

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This chapter will include a comprehensive study of the concept of Fundamental analysis and its
tools.
CHAPTER 3: DATA SOURCE AND RESEARCH METHODOLOGY
This chapter will give an inside into source of data and method of undertaking research.
CHAPTER 4: DATA ANALYSIS
This is the chapter of all observations, inferences, analysis and conclusions that will be made out of
the data analysis during the course of study.
CHAPTER 5: LIMITATIONS AND SUGGESTIONS
All the limitations and stumbling blocks that will be encountered during the study will be discussed
in this chapter along with the future scope and suggestions.
BIBLIOGRAPHY

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ECONOMIC ANALYSIS
(Chapter- 2)
The economic analysis aims at determining if the economic climate is conclusive and is capable of
encouraging the growth of business sector, especially the capital market. When the economy
expands, most industry groups and companies are expected to benefit and grow. When the economy
declines, most sectors and companies usually face survival problems. Hence, to predict share prices,
an investor has to spend time exploring the forces operating in overall economy. Exploring the
global economy is essential in an international investment setting. The selection of country for
investment has to focus itself to examination of a national economic scenario. It is important to
predict the direction of the national economy because economic activity affects corporate profits,
not necessarily through tax policies but also through foreign policies and administrative procedures.
Tools for Economy Analysis
The most used tools for performing economic analysis are:

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 Gross Domestic Product (GDP)
 Monetary policy and Liquidity
 Inflation
 Interest rates
 International influences
 Fiscal policy
 Influences on long term expectations
 Influences on short term expectations.
1) Gross Domestic product
GDP is one measure of economic activity. This is the total amount of goods and services produced
in a country in a year. It is calculated by adding the market values of all the final goods and services
produced in a year.
 It is a gross measurement because it includes the total amount of goods and services
produced, of which some merely replace goods that have depreciated or have worn out.
 It is domestic production because it includes only goods and services produced within the
country.
2) Inflation
Inflation can be defined as a trend of rising prices caused by demand exceeding supply. Over time,
even a small annual increase in prices of say 1 % will tend to influence the purchasing power of the
nation. In others word, if prices rise steadily, after a number of years, consumers will be able to buy
only fewer goods and services assuming income level does not change with inflation.
3) Interest rate
Interest rate is the price of credit. It is the percentage fee received or paid by individual or
organization when they lend and borrow money. In general, increases in interest rate, whether
caused by inflation, government policy, rising risk premium, or other factors, will lead to reduced
borrowing and economic slowdown.
4) International influences

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Rapid growth in overseas market can create surges in demand for exports, leading to growth in
export sensitive industries and overall GDP. In contrast, the erection of trade barriers, quotas,
currency restrictions can hinder the free flow of currency, goods, and services, and harm the export
sector of an economy.
5) Fiscal policy
The fiscal policy of the government involves the collection and spending of revenue. In particular,
fiscal policy refers to the efforts by the government to stimulate the economic directly, through
spending.

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Industry Analysis
(Chapter-3)
An industry analysis helps inform business managers about the viability of their current strategy and
on where to focus a business among its competitors in an industry. The analysis examines factors
such as competition and the external business environment, substitute products, management
preferences, buyers and suppliers. Industry analysis involves reviewing the economic, political and
market factors that influence the way the industry develops. Major factors can include the power
wielded by suppliers and buyers, the condition of competitors. And the likelihood of new market
entrants.
Data needs for industry analysis:

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Industry analysis requires a variety of quantitative and qualitative data. Though one single source
for all the data needs might not found, industry associates, business publications and the department
of economic analysis perform a comprehensive industry analysis. A suggestive list of data
categories that are utilized for performing industry analysis is listed below.
 Product lines
 Product growth
 Complementary product
 Economics of scale
 Suppliers
 Labours
 Substitute products
 Buyers and their behaviour
 Product pattern (cyclical, seasonal)
 Cost structure
Tools for industry analysis:
 Cross-sectional industry
 Industry performance over time
 Differences in industry risk
 Prediction about market behaviour
 Competitors over the industry life cycle
THE INDIAN BANKING SECTOR REVIEW:

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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.
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. The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India. Not long ago, an account
holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own
money. Today, he has a choice. Gone are days when the most efficient bank transferred money from
one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money has
become the order of the day.
Post independence:
In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it
became an institution owned by the Government of India.
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 may be
opened without a license from the RBI, and no two banks could have common directors.
Liberalization:
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. In the early 1990s the
then Narsimha Rao government embarked on a policy of liberalization and gave licenses to a small
number of private banks, which came to be known as New Generation tech-savvy banks, which
included banks such as Global Trust Bank (the first of such new generation banks to be
set up) which later amalgamated with Oriental Bank of Commerce, UTI Bank (now re-
named as Axis Bank), ICICI Bank and HDFC Bank.

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Current situation:
Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with
the Government of India holding a stake), 29 private banks (these do not have government stake;
they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a
combined network of over 67,000 branches and 17,000 ATMs. According to a report by ICRA
Limited, a rating agency, the public sector banks hold over 78 percent of total assets of the banking
industry, with the private and foreign banks holding 18.2% and 6.5% respectively.
Over the last four years, India’s economy has been on a high growth trajectory, creating
unprecedented opportunities for its banking sector. Most banks have enjoyed high growth and their
valuations have appreciated significantly during this period. Looking ahead, the most pertinent issue
is how well the banking sector is positioned to cater to continued growth. A holistic assessment of
the banking sector is possible only by looking at the roles and actions of banks, their core
capabilities and their ability to meet systemic objectives, which include increasing shareholder
value, fostering financial inclusion, contributing to GDP growth, efficiently managing
intermediation cost, and effectively allocating capital and maintaining system stability.
BANKING STRUCTURE IN INDIA:
The banking institutions in the organized sector, commercial banks are the oldest institutions, some
them having their genesis in the nineteenth century. Initially they were set up in large numbers,
mostly as corporate bodies with shareholding with private individuals. Today 27 banks constitute a

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strong Public Sector in Indian Commercial Banking. Commercial Banks operating in India fall
under different sub categories on the basis of their ownership and control over management;
Public Sector Banks:
Public Sector Banks emerged in India in three stages. First the conversion of the then existing
Imperial Bank of India into State Bank of India in 1955, followed by the taking over of the seven
associated banks as its subsidiary. Second the nationalization of 14 major commercial banks in
1969and last the nationalization of 6 more commercial Bank in 1980. Thus 27 banks constitute the
Public Sector Banks.
New Private Sector Banks:
After the nationalization of the major banks in the private sector in 1969 and 1980, no new bank
could be setup in India for about two decades, though there was no legal bar to that effect. The 21
Narasimham Committee on financial sector reforms recommended the establishment of new banks
of India. RBI thereafter issued guidelines for setting up of new private sector banks in India in
January 1993. These guidelines aim at ensuring that new banks are financially viable and
technologically up to date from the start. They have to work in a professional manner, so as to
improve the image of commercial banking system and to win the confidence of the public. Eight
private sector banks have been established including banks sector by financially institutions like
IDBI, ICICI, and UTI etc.
Local Area Banks:
Such Banks can be established as public limited companies in the private sector and can be
promoted by individuals, companies, trusts and societies. The minimum paid up capital of such
banks would be 5 crores with promoters contribution at least Rs. 2 crores. They are to be set up in
district towns and the area of their operations would be limited to a maximum of 3 districts. At
present, four local area banks are functional, one each in Punjab, Gujarat, Maharashtra and Andhra
Pradesh.
Foreign Banks:
Foreign commercial banks are the branches in India of the joint stock banks incorporated abroad.
There number was 38 as on 31.03.2009.
Scheduled Commercial Banks in India:

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The commercial banking structure in India consists of:
Scheduled Commercial Banks in India
Unscheduled Banks in India
Scheduled Banks in India constitute those banks which have been included in the Second Schedule
of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule
which satisfy the criteria laid down vide section42 (6) a) of the Act.
"Scheduled banks in India" means the State Bank of India constituted under the State Bank of India
Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks)
Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of
the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any
other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2
of 1934), but does not include a co-operative bank". "Non-scheduled bank in India" means a
banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of
1949), which is not a scheduled bank".
Cooperative Banks:
Besides the commercial banks, there exists in India another set of banking institutions called
cooperative credit institutions. These have been made in existence in India since long. They
undertake the business of banking both in urban and rural areas on the principle of cooperation.
They have served a useful role in spreading the banking habit throughout the country. Yet, there
financial position is not sound and a majority of cooperative banks has yet to achieve financial
viability on a sustainable basis.
The cooperative banks have been set up under various Cooperative Societies Acts enacted by State
Governments. Hence the State Governments regulate these banks. In 1966, need was felt to regulate
their activities to ensure their soundness and to protect the interests of depositors.
According to the RBI in March 2009, number of all Scheduled Commercial Banks (SCBs) was 171
of which, 86 were Regional Rural Banks and the number of Non-Scheduled Commercial Banks
including Local Area Banks stood at 5. Taking into account all banks in India, there are overall
56,640 branches or offices, 893,356 employees and 27,088 ATMs. Public sector banks made up a
large chunk of the infrastructure, with 87.7 per cent of all offices, 82 per cent of staff and 60.3 per
cent of all automated teller machines (ATMs).
SWOT ANALYSIS OF BANKING SECTOR

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STRENGTH:
Indian banks have compared favourably on growth, asset quality and profitability with other
regional banks over the last few years. The banking index has grown at a compounded annual rate
of over 51 per cent since April 2001 as compared to a 27 per cent growth in the market index for the
same period. Policy makers have made some notable changes in policy and regulation to help
strengthen the sector. These changes include strengthening prudential norms, enhancing the
payments system and integrating regulations between commercial and co-operative banks. Bank
lending has been a significant driver of GDP growth and employment.
Extensive reach:
The vast networking & growing number of branches & ATMs. Indian banking system has reached
even to the remote corners of the country. In terms of 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.
WEAKNESS:
Public Sector Banks need to fundamentally strengthen institutional skill levels especially in sales
and marketing, service operations, risk management and the overall organizational performance
ethic & strengthen human capital.
Old private sector banks also have the need to fundamentally strengthen skill levels.
The cost of intermediation remains high and bank penetration is limited to only a few customer
segments and geographies.
Structural weaknesses such as a fragmented industry structure, restrictions on capital availability
and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate
governance and ineffective regulations beyond Scheduled Commercial Banks (SCBs), unless
industry utilities and service bureaus.
Refusal to dilute stake in PSU banks:
The government has refused to dilute its stake in PSU banks below 51% thus choking the headroom
available to these banks for raining equity capital.
Impediments in sectoral reforms:

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Opposition from Left and resultant cautious approach from the North Block in terms of approving
merger of PSU banks may hamper their growth prospects in the medium term.
OPPORTUNITY:
The market is seeing discontinuous growth driven by new products and services that include
opportunities in credit cards, consumer finance and wealth management on the retail side, and in
fee-based income and investment banking on the wholesale banking side. These require new skills
in sales & marketing, credit and operations.
With increased interest in India, competition from foreign banks will only intensify.
Given the demographic shifts resulting from changes in age profile and household income,
consumers will increasingly demand enhanced institutional capabilities and service levels from
banks.
New private banks could reach the next level of their growth in the Indian banking sector by
continuing to innovate and develop differentiated business models to profitably serve segments like
the rural/low income and affluent/HNI segments; actively adopting acquisitions as a means to grow
and reaching the next level of performance in their service platforms. Attracting, developing and
retaining more leadership capacity.
Foreign banks committed to making a play in India will need to adopt alternative approaches to win
the “race for the customer” and build a value-creating customer franchise in advance of regulations
potentially opening up post 2009.
Reach in rural India for the private sector and foreign banks.
Liberalization of ECB norms:
The government also liberalised the ECB norms to permit financial sector entities engaged in
infrastructure funding to raise ECBs. This enabled banks and financial institutions, which were
earlier not permitted to raise such funds, explore this route for raising cheaper funds in the overseas
markets.
Hybrid capital:
In an attempt to relieve banks of their capital crunch, the RBI has allowed them to raise perpetual
bonds and other hybrid capital securities to shore up their capital. If the new instruments find takers,
it would help PSU banks, left with little headroom for raising equity.

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THREATS:
Threat of stability of the system: failure of some weak banks has often threatened the stability of the
system. Rise in inflation figures which would lead to increase in interest rates. Increase in the
number of foreign players would pose a threat to the Public Sector Bank as well as the private
players.
Key players
Andhra Bank State Bank of India
Allahabad Bank Vijaya Bank
Punjab National Bank HDFC Bank
UTI Bank ICICI Bank
Kotak Mahindra Bank Centurion Bank of Punjab
Citibank Standard Chartered Bank
HSBC Bank State Bank of Mysore
American Express Bank ABN AMRO

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Company analysis
(Chapter-4)

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Analysis of the company consists of measuring its performance and ascertaining the cause of this
performance. When some companies have done well irrespective of economic or industry failure,
this implies that there are certain unique characteristics for this particular company that had made it
a success. The identification of these characteristics, whether quantitative or qualitative, is referred
to as company analysis. Quantitative indicators of company analysis are the financial indicators and
operational efficiency indicators. Financial indicators are the profitability indicators and financial
position indicators analyzed through the income and balance sheet statements, respectively, of the
company. Operational indicators are capacity utilization and cost versus sales efficiency of the
company, which includes the marketing edge of the company.
Besides the quantitative factors, qualitative factors of a company also influence investment decision
process of an institutional investor. The focus of the qualitative data, as revealed in the annual
report- as in the director’s speech. Rather than on quantitative data.
Tools for company analysis:
Company analysis involves choice of investment opportunities within a specific industry that
comprises of several individual companies. The choice of an investible company broadly depends
on the expectations about its future performance in general. Here, the business cycle that a company
is undergoing is a very useful tool to assess the future performance from the company.
Company analysis ought to examine the levels of competition, demand, and other forces that affect
the company’s ability to be profitable. Of these factors, understanding the competitive environment
is most important.
A business faces five forces of competition (porter’s model) namely, seller’s competition, buyer’s
competition, competition from new entrants, exit competition. Competitive forces include the power
of those who sell the business, those who buy the business; those who buy from the business, how
easily new businesses can enter the industry, how costly it is to exit, and finally, the competition
from those who already in the industry. How well a company deals with each of these forces will
determine whether the company earns above or below average profit. Each of these forces is
discussed below.
1. Porter model:
Porter's Five Forces is a framework for industry analysis and business strategy development formed
by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization
(IO) economics to derive five forces that determine the competitive intensity and therefore
attractiveness of a market. Attractiveness in this context refers to the overall industry profitability.
An "unattractive" industry is one in which the combination of these five forces acts to drive down
overall profitability. A very unattractive industry would be one approaching "pure competition", in
which available profits for all firms are driven down to zero.

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Three of Porter's five forces refer to competition from external sources. The remainder are internal
threats.
Porter referred to these forces as the micro environment, to contrast it with the more general term
macro environment. They consist of those forces close to a company that affect its ability to serve
its customers and make a profit. A change in any of the forces normally, requires a business unit to
re-assess the marketplace given the overall change in industry information. The overall industry
attractiveness does not imply that every firm in the industry will return the same profitability. Firms
are able to apply their core competencies, business model or network to achieve a profit above the
industry average. A clear example of this is the airline industry. As an industry, profitability is low
and yet individual companies, by applying unique business models, have been able to make a return
in excess of the industry average.
Porter's five forces include - three forces from 'horizontal' competition: threat of substitute products,
the threat of established rivals, and the threat of new entrants; and two forces from 'vertical'
competition: the bargaining power of suppliers and the bargaining power of customers.
This five forces analysis is just one part of the complete Porter strategic models. The other elements
are the value chain and the generic strategies

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(a) The threat of the entry of new competitors :
Profitable markets that yield high returns will attract new firms. This results in many new entrants,
which eventually will decrease profitability for all firms in the industry. Unless the entry of new
firms can be blocked by incumbents, the abnormal profit rate will fall towards zero (perfect
competition).
 The existence of barriers to entry (patents, rights, etc.) The most attractive segment is one in
which entry barriers are high and exit barriers are low. Few new firms can enter and non-
performing firms can exit easily.
 Economies of product differences
 Brand equity
 Switching costs or sunk costs
 Capital requirements
 Access to distribution
 Customer loyalty to established brands
 Absolute cost
 Industry profitability; the more profitable the industry the more attractive it will be to new
competitors
(b) The threat of substitute products or services:
The existence of products outside of the realm of the common product boundaries increases the
propensity of customers to switch to alternatives:
 Buyer propensity to substitute
 Relative price performance of substitute
 Buyer switching costs
 Perceived level of product differentiation
 Number of substitute products available in the market
 Ease of substitution. Information-based products are more prone to substitution, as online
product can easily replace material product.
 Substandard product
 Quality depreciation

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(c) The bargaining power of customers (buyers):
The bargaining power of customers is also described as the market of outputs: the ability of
customers to put the firm under pressure, which also affects the customer's sensitivity to price
changes.
 Buyer concentration to firm concentration ratio
 Degree of dependency upon existing channels of distribution
 Bargaining leverage, particularly in industries with high fixed costs
 Buyer volume
 Buyer switching costs relative to firm switching costs
 Buyer information availability
 Ability to backward integrate
 Availability of existing substitute products
 Buyer price sensitivity
 Differential advantage (uniqueness) of industry products
 RFM Analysis
(d) The bargaining power of suppliers:
The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw
materials, components, labour, and services (such as expertise) to the firm can be a source of power
over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g.,
charge excessively high prices for unique resources.
 Supplier switching costs relative to firm switching costs
 Degree of differentiation of inputs
 Impact of inputs on cost or differentiation
 Presence of substitute inputs
 Strength of distribution channel
 Supplier concentration to firm concentration ratio
 Employee solidarity (e.g. labour unions)
 Supplier competition - ability to forward vertically integrate and cut out the BUYER
(e) The intensity of competitive rivalry
For most industries, the intensity of competitive rivalry is the major determinant of the
competitiveness of the industry.
 Sustainable competitive advantage through innovation

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 Competition between online and offline companies; click-and-mortar -v- slags on a bridge
 Level of advertising expense
 Powerful competitive strategy
 The visibility of proprietary items on the Web used by a company which can intensify
competitive pressures on their rivals.
How will competition react to certain behaviour by another firm? Competitive rivalry is likely to be
based on dimensions such as price, quality, and innovation. Technological advances protect
companies from competition. This applies to products and services. Companies that are successful
with introducing new technology are able to charge higher prices and achieve higher profits, until
competitors imitate them. Examples of recent technology advantage in have been mp3 players and
mobile telephones. Vertical integration is a strategy to reduce a business' own cost and thereby
intensify pressure on its rival.
2. The financial statements of the company:
Records that outline the financial activities of a business, an individual or any other entity.
Financial statements are meant to present the financial information of the entity in question as
clearly and concisely as possible for both the entity and for readers. Financial statements for
businesses usually include: income statements, balance sheet, statements of retained earnings
and cash flows, as well as other possible statements
3. Ratio analysis:
A tool used by individuals to conduct a quantitative analysis of information in a company's
financial statements. Ratios are calculated from current year numbers and are then compared to
previous years, other companies, the industry, or even the economy to judge the performance of
the company. Ratio analysis is predominately used by proponents of fundamental analysis.
There are many ratios that can be calculated +from the financial statements pertaining to a
company's performance, activity, financing and liquidity. Some common ratios include the
price-earnings ratio, debt-equity ratio, earnings per share, asset turnover and working capital.
Annual Net Income
Total Assets

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4. ROA:
Return on assets, which, offering a different take on management's effectiveness reveals how
much profit a company earns for every dollar of its assets. Assets include things like cash in the
bank, accounts receivable, property, equipment, inventory and furniture. ROA is calculated like
this:
5. ROI:
Return on Investment is one of several commonly used approaches for evaluating the financial
consequences of business investments, decisions, or actions. ROI analysis compares the
magnitude and timing of investment gains directly with the magnitude and timing of investment
costs. A high ROI means that investment gains compare favourably to investment costs
GAINS-INVESTMENT
COSTS INVESTMENT COSTS
6. ROE:
Of all the fundamental ratios that investors look at, one of the most important is return on equity.
It's a basic test of how effectively a company's management uses investors' money - ROE shows
whether management is growing the company's value at an acceptable rate. ROE is calculated as:
Annual Net Income
Average Shareholders' Equity
7. EPS:
The portion of a company's profit allocated to each outstanding share of common stock.
Earnings per share serve as an indicator of a company's profitability.
Calculated as:

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8. DPS:
The sum of declared dividends for every ordinary share issued. Dividend per share (DPS) is the
total dividends paid out over an entire year (including interim dividends but not including
special dividends) divided by the number of outstanding ordinary shares issued. DPS can be
calculated by using the following formula:
D - Sum of dividends over a period (usually 1 year)
SD - Special, one time dividends
S - Shares outstanding for the period
9. P/O RATIO:
The amount of earnings paid out in dividends to shareholders. Investors can use the payout ratio
to determine what companies are doing with their earnings.
Calculated
10.DIVIDEND YEILD:
Financial ratio that shows how much a company pays out in dividends each year relative to its
share price. In the absence of any capital gains, the dividend yield is the return on investment for
a stock. Dividend yield is calculated as follows:

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RESEARCH METHODOLOGY (Chapter-5)

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Research methodology:
Research methodology is a way to systematically solve the research problem. The research
methodology using for find out the solution of the research problem is analytical research
methodology and some extend descriptive research methodology.
The sources of secondary data for solve the problems are:-
 Company Annual Report
 ACE equity database
 Internet-websites
Period of study:
The period of the study is 5 years i.e. (2006-2010). Company 5 years data has been taken for the
analysis.
Tools:
These are the most popular tools of fundamental analysis. They focus on earnings, growth, and
value in the market.
 Earnings per Share – EPS
 Price to Earnings Ratio – P/E
 Projected Earning Growth – PEG
 Price to Sales – P/S
 Price to Book – P/B

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 Dividend Payout Ratio
 Dividend Yield
 Book Value Ratio Analysis
 Liquid ratio
 Turnover ratio
 Valuation ratio
Techniques
The technique used in the analysis of the company is excel sheets, graphs and tables of financial
statement for example balance sheet, profit loss a/c, cash flow statement, dividend per share, ratio
analysis, valuation ratio etc.

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DATA ANALYSIS
(Chapter-6)

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The process of evaluating data using analytical and logical reasoning to examine each component of
the data provided. This form of analysis is just one of the many steps that must be completed when
conducting a research experiment. Data from various sources is gathered, reviewed, and then
analyzed to form some sort of finding or conclusion. There are a variety of specific data analysis
method, some of which include data mining, text analytics, business intelligence, and data
visualizations.
Data can be of several types:
 Quantitative data is a number
 Qualitative data is a pass/fail or the presence of a characteristic
Quantitative data is data measured or identified on a numerical scale. Numerical data can be
analyzed using statistical methods, and results can be displayed using tables, charts, histograms and
graphs.
The term qualitative data is used to describe certain types of information. This is almost the
converse of quantitative data, in which items are more precisely described as data in terms of
quantity and in which numerical values are used. However, data originally obtained as qualitative
information about individual items may give rise to quantitative data if they are summarized by
means of counts.
Qualitative data described items in terms of some quality or categorization that may be 'informal' or
may use relatively ill-defined characteristics such as warmth and flavour. However, qualitative data
can include well-defined aspects such as gender, nationality or commodity type.

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ECONOMY ANALYSIS

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Analysis of Indian Economy:
India's economy expanded 8.8% in the second quarter from a year earlier, compared to an 8.6% on-
year expansion in the first, lifted by robust activity in manufacturing. Agricultural output along with
strong development in the Industrial, Mining and banking sector have helped to boost the Indian
economy. Agricultural output raised 2.8 per cent y-o-y thanks to improved harvests.
Industrial production increased by 12% and in the mining sector by 9%. According to 2010 data the
shares of banking sector value add in GDP has been increased 7.7% from 2.5%.The forecasters have
assigned highest 29.6 per cent chance that it will fall in 6.0-6.9 per cent in 2010- 11. They raised
their forecasts slightly for agriculture growth to 4.0 percent from 3.5 percent, for industry to 9.0
percent from 8.1 percent and for services it was steady at 9.0 percent .
The survey showed the economists expect GDP growth in the April-June quarter to be 8.1 percent
up from 7.9 percent in the last survey. For the July-September quarter, GDP growth is placed at 8.3
percent. The Reserve Bank of India has stated that it had seen an annual growth of 8.5% steadily.
The main priority of the Reserve Bank is to curb the ongoing inflation, which peaked at 11% last
month. Interest rates have been increased by the banks to contain the inflation, but it could slow
down the growth of the Indian economy in the coming months. But even thought there has been a
rise in the interest rates there hasn’t been much change in the distribution of loans, the Indian
customer is hardly affected with the hiked interest rates.
Almost every sector of the economy is poised to grow faster and a 9 per cent growth in 2010-11 is
not difficult if domestic policies and external factors do not come in the way. Expert expects that
India s economy to grow by 8.1% in 2010 based on a steep gain in industrial output and resurgent
private consumption investment and exports. Were these scenarios to continue growth would lift
further to 8.3% in 2011 said Chief Economist. They also expect the Reserve Bank of India (RBI) to
continue gradually raising interest rates and to keep a tight leash on liquidity to tame inflation.
Recently RBI changed the repo rate from 5.75% to 6% and reverse repo rate 4.5% to 5%. CRR rate
they keeping unchanged. This six time I a year they revise key parameter to control inflation.
INDIA GDP SURGES 8.9% IN THE THIRD QUARTER:
India's domestically-powered economy grew more than expected in the September quarter, defying
weakness elsewhere and putting pressure on the Reserve Bank of India (RBI) to tighten monetary
policy although a rate increase next month still looks unlikely. Annual gross domestic product grew

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8.9 percent in the September quarter -- matching the revised figure for the previous quarter.
Consumer price inflation eased to an annual 9.7 percent in October from 9.82 percent the previous
month, data showed on Tuesday. Wholesale price inflation, which is more closely watched as it
covers a higher number of products, eased to 8.58 percent in October from 8.62 percent a month
earlier. Investment growth slowed on an annualized basis to 11.1 percent from 19 percent in the
previous quarter, while annualized private consumption accelerated to 9.3 percent from 7.8 percent
in the previous quarter, pointing to inflationary risks. The services sector, which accounts for over
50 percent of GDP, grew 9.8 percent in the September quarter, higher than 9.3 percent in the
previous quarter. Signs of easing inflation, a fragile global economy and weaker industrial output in
September were likely to forestall any rise in rates in the near-term, some analysts said. "Unless the
full year growth looks likely to cross 9 percent, the central bank is unlikely to get aggressive again
in raising rates," said Anjali Varma, economist at MF Global in Mumbai. Industrial output growth --
a key indicator of growth momentum -- in Asia's third-largest economy slowed unexpectedly in
September to 4.4 percent from a year earlier, down from the previous month's upwardly revised 6.92
percent growth.
Year Mar Jun Sep Dec
2010 8.60 8.90 8.90 -
2009 5.80 6.00 8.60 6.50
2008 8.50 7.80 7.50 6.10

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Healthy economic growth, especially since 2005, has also facilitated impressive growth in the
commercial banking sector (Chart 5.2). Though the growth rate of the consolidated balance sheet of
commercial banks moderated in 2008-09 at 21 per cent as compared to 25 per cent in 2007-08, the
sector continued to grow at a rate higher than that of the nominal GDP (at current market prices).
Accordingly, the ratio of commercial banking assets to GDP increased to 98.5 per cent at end-
March 2009 from 91.6 per cent as at end-March 2008.
With the impact of the financial crisis gradually affecting the global economy, credit off-take
slowed down further and the year on year growth in bank credit during the first half year of 2009-10
stood at 12.3 per cent. During the same period, investments grew by 34.5 per cent (as compared to
6.3 per cent as on September 2008). However, there are early signs of credit growth recovering in
line with the economy, on the back of fiscal and monetary measures. This trend is clearly shown by
the movements in incremental credit-deposit (CD) and investment-deposit (ID) ratio in recent
periods (Chart 5.5).

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INDIA INFLATION RATE:
The inflation rate in India was last reported at 9.47 percent in December of 2010. From 1969 until
2010, the average inflation rate in India was 7.99 percent reaching an historical high of 34.68
percent in September of 1974 and a record low of -11.31 percent in May of 1976. Inflation rate
refers to a general rise in prices measured against a standard level of purchasing power. The most
well known measures of Inflation are the CPI which measures consumer prices, and the GDP
deflator, which measures inflation in the whole of the domestic economy. This page includes: India
Inflation Rate chart, historical data and news.

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Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 16.22 14.86 14.86 13.33 13.91 13.73 11.25 9.88 9.82 9.70 8.33 9.47
2009 10.45 9.63 8.03 8.70 8.63 9.29 11.89 11.72 11.64 11.49 13.51 14.97
2008 5.51 5.47 7.87 7.81 7.75 7.69 8.33 9.02 9.77 10.45 10.45 9.70
India Interest Rate:
The benchmark interest rate (reverse repo) in India was last reported at 5.5 percent. In India, interest
rate decisions are taken by the Reserve Bank of India's Central Board of Directors. The official
interest rate is the benchmark repurchase rate. From 2000 until 2010, India's average interest rate
was 5.82 percent reaching an historical high of 14.50 percent in August of 2000 and a record low of
3.25 percent in April of 2009.

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Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011 5.50
2010 3.25 3.25 3.38 3.63 3.75 3.75 4.08 4.50 5.00 5.25 5.25
2009 4.50 4.00 3.75 3.38 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25
2008 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 5.50

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INDUSTRY ANALYSIS

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The last decade has seen many positive developments in the Indian banking sector. The policy
makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and related
government and financial sector regulatory entities, have made several notable efforts to Improve
regulation in the sector. The sector now compares favourably with banking sectors in the region on
metrics like growth, profitability and non-performing assets (NPAs). A few banks have established
an outstanding track record of innovation, growth and value creation. This is Reflected in their
market valuation. However, improved regulations, innovation, growth and value creation in the
sector remain limited to a small part of it. The cost of banking intermediation in India is higher and
bank penetration is far lower than in other markets. India’s banking industry must strengthen itself
significantly if it has to support the modern and vibrant economy which India aspires to be. While
the onus for this change lies mainly with bank managements, an enabling policy and regulatory
framework will also be critical to their success. The failure to respond to changing market realities
has stunted the development of the financial sector in many developing countries. A weak banking
structure has been unable to fuel continued growth, which has harmed the long-term health of their
economies. In this “white paper”, we emphasize the need to act both decisively and quickly to build
an enabling, rather than a limiting, banking sector in India.
OPPORTUNITIES AND CHALLENGES FOR PLAYERS:
The bar for what it means to be a successful player in the sector has been raised. Four challenges
must be addressed before success can be achieved. First, the market is seeing discontinuous growth
driven by new products and services that include opportunities in credit cards, consumer finance and
wealth management on the retail side, and in fee-based income and investment banking on the
wholesale banking side. These require new skills in sales & marketing, credit and operations.
Second, banks will no longer enjoy windfall treasury gains that the decade-long secular decline in
interest rates provided. This will expose the weaker banks. Third, with increased interest in India,
competition from foreign banks will only intensify. Fourth, given the demographic shifts resulting
from changes in age profile and household income, consumers will increasingly demand enhanced
institutional capabilities and service levels from banks.
Growth in the Indian banking industry:
The growth in the Indian Banking Industry has been more qualitative than quantitative and it is
expected to remain the same in the coming years. Based on the projections made in the "India
Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts
that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of
all scheduled commercial banks by end-March 2010 are estimated at Rs 40, 90,000 crores that will
comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03.
Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest of the
decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is
expected that there will be large additions to the capital base and reserves on the liability side.

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Peer Group Comparison (Standalone) (Rs. In Crore)
Compan
y Name
Year
End
Net
Sales
PBIDT PAT Adj.
EPS(R
s)
PBIDT
M%
PATM
%
ROCE
%
ROE
%
Induslan
d Bank
20100
3
2706.99 703.89 350.31 8.53 26 12.94 7.53 19.51
ICICI
Bank
20100
3
25706.9
3
9732.1
8
4024.9
8
36.1 37.86 15.66 6.18 7.96
Kotak
Bank
20100
3
3255.62 1297 561.11 8.06 39.84 17.23 6.68 13.52
HDFC
Bank
20100
3
16172.9 6429.7
3
2948.7 64.42 39.76 18.23 5.95 16.31
Axis
Bank
20100
3
11638.0
2
5240.5
6
2514.5
3
62.06 45.03 21.61 6.39 19.15

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Interpretation:
Here we can see that ICICI has highest net sales with 25706.93 cr. And PAT is also highest among
the peer group with 4027.93 cr. That means ICICI is most favourable company to invest in terms of
profit.
Bank – Private Industry Ratios:
Description 2010 2009 2008 2007 2006
No Of
Companies
74 89 83 71 68
Margin Ratios
Yield on
Advances
13.31 14.23 12.87 12.04 11.36
Yield on
Investments
6.22 7.44 7.21 6.37 6.41

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Cost of
Liabilities
5.02 6.09 5.87 5.1 4.27
NIM 5.63 5.38 4.69 4.38 4.92
Interest Spread 8.28 8.14 7 6.94 7.1
Performance Ratios
ROA (%) 1.17 1.28 1.34 1.19 1.18
ROE (%) 10.65 11.07 12.02 14.45 13.36
ROCE (%) 5.96 7.11 7.04 6.4 5.56
Efficiency Ratios
Cost Income
Ratio
42.89 42.45 46.35 50.66 51.38
Core Cost
Income Ratio
44.25 45.19 48.74 51.78 50.8
Operating Costs
to Assets
7.46 7.55 7.49 7.82 8.2
Growth Ratio
Core Operating
Income Growth
9.09 30.55 44.08 32.44 107.35
Operating Profit
Growth
2.45 20.79 60.6 37.8 127.56
Net Profit
Growth
3.73 16.84 55.86 37.48 102.66
Advances
Growth
8.99 14.77 46.44 38.42 86.72
Liquidity Ratios
Loans/Deposits(
x)
0.2 0.26 0.22 0.18 0.19
Cash/Deposits(x
)
0.09 0.07 0.1 0.07 0.06
Investment/Dep
osits(x)
0.47 0.44 0.43 0.41 0.43
Inc
Loan/Deposit
(%)
19.63 25.72 22.28 17.58 18.73

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Interpretation:
 ROE:
ROE examines profitably from the perspective of equity investors by relating profits available for
the equity share holders with the book value of equity investments. The return from the point of
view of equity shareholders may be calculated by comparing the net profit less preference dividend
with there total contribution to the firm. Over the years ROE of the industry have declined
 ROA:
ROA measures a profitability of the firm in terms of assets employed in the firm. ROE is calculated
by establishing the relationship between the profits and the assets employed to earn that profit. ROA

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shows as to how much is the profit earn by the firm per rupee of assets used. Here industry ROA is
almost stable.
 NET PROFIT:
The NP ratio establishes the relationship between the net profit (after tax) of the firm and the net
sales. Its measures the efficiency of the management in generating additional revenue over and
above the total cost of operations.
Net profit ratio has decreased over the years which mean that the overall profitability of the industry
has fallen down.
Bank – Private Industry profit & Loss A/C:
DESCRIPTION Latest 2010 2009 2008 2007 2006
No of Companies 98 74 89 83 71 68
Interest Earned 135486.15 113327.71 136806.93 107590.8 71311.52 50355.01
Other Income 35136.24 29599.54 35299.77 28016.66 20011.95 14051.36
Total Income 170622.38 142927.25 172106.71 135607.47 91323.48 64406.36
Interest Expended 78145.22 65332.36 84711.83 68370.19 42996.95 28555.1
Operating
Expenses
38681.01 33282.45 36938.65 31161.41 24155.71 18421.37
Provisions and
Contingencies
19010.41 16440.68 16710.7 8910.47 6848.84 4792.74
Profit Before Tax 34785.74 27871.76 33745.53 27165.39 17321.97 12637.15
Taxes 12304.43 9657.77 12149.69 8925.72 5498.1 3904.43
Total 148141.07 124713.26 150510.87 117367.79 79499.61 55673.64
Profit After Tax 22481.31 18213.99 21595.84 18239.68 11823.87 8732.73
Extra items -22.08 -19.49 -30.5 -1.46 133.84 62.51
Profit brought
forward
15392.55 14902.92 11246.87 5710.75 3893.12 1766.31
Adjustments to
PAT
24.84 -23.31 15.64 140.12 182.71 85.56
Total Profit &
Loss
37898.7 33093.6 32858.35 24090.55 15899.7 10584.6
IV.
APPROPRIATIO
NS
37886.23 33074.11 32827.85 24089.09 16043.16 10647.11

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Interpretation:
Private bank industry profit & loss account shows that banking industry is having a large profit you
and growing rapidly. This is a good sign for the investors who want to invest in the banking
industry.

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Competition:
Last Price Market Cap. (Rs.
Cr.)
Net Interest
Income
Net Interest Income Net
Profit
Total Assets
ICICI Bank 1,105.45 127,322.68 25,706.93 4,024.98 363,399.71
HDFC Bank 2,350.05 109,330.36 19,928.21 3,926.39 222,458.56
Axis Bank 1,333.45 54,744.24 15,154.81 3,388.49 180,647.87
Kotak
Mahindra
458.00 33,748.71 3,255.62 561.11 37,436.31
IndusInd Bank 267.00 12,418.17 3,589.36 577.32 35,369.52
YES BANK 316.25 10,978.53 4,041.74 727.13 36,382.50
Federal Bank 436.05 7,454.92 3,673.23 464.55 43,675.61
Karur Vysya 417.00 4,449.13 1,757.94 336.03 21,993.49
ING Vysya
Bank
353.15 4,272.65 2,694.06 318.65 33,880.24
JK Bank 823.50 3,992.15 3,056.88 512.38 42,546.80

Ankit Jaiswal
COMPANY ANALYSIS
ICICI BANK LTD:

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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 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.
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 Ahmadabad 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.
ICICI Bank is India’s second-largest bank with total assets of Rs.3,793.01 billion (US$ 75 billion) at
March 31, 2009 and profit after tax Rs.37.58 billion for the year ended March 31, 2009. The Bank
has a network of 1,454 branches and about 4,721 ATMs in India and presence in 18 countries. ICICI
Bank offers a wide range of banking products and financial services to corporate and retail

Ankit Jaiswal
customers through a variety of delivery channels and through its specialized subsidiaries and
affiliates 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. Their UK subsidiary has established branches in Belgium and Germany.
SNAPSHORT OF ICICI BANK LTD:
Company Details:
Company Address:
Registered Office Landmark, Race Course
Circle,Vadodara,390007,Gujarat
Phone 91-0265-6617200/3983200
Fax 91-0265-2339926
Website www.icicibank.com
Email investor@icicibank.com
Price Information:
Industry Bank – Private
Chairman K V Kamath
Managing Director Chanda D Kochhar
Company Secretary Sandeep Batra
ISIN INE090A01013
Bloomberg Code ICICIBC IN
Reuters Code ICBK.BO

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Latest Date 09-Mar-11
Latest Price (Rs) 1033.55
Previous Close (Rs) 1020.85
1 Day Price Vat% 1.24
1 Year Price Vat% 11.76
52 Week High (Rs) 1277
52 Week Low (Rs) 803.3
Beta 1.4927
Face Value (Rs) 10
Industry PE 20.04
PRICE V/S SENSEX CHART Period: From 10/03/2010 to 09/03/2011
Company Size (Standalone):

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Market Cap(Rs Crore) 118741.77
EV (Rs Crore) 185491.05
Latest no. of shares 1148873022
Share holding pattern as on 201012
Promoter No of shares 0
Promoter % 0
FII No of Shares 451680100
FII % 39.23
Total No of Shares 1151422189
Free Float % 100
Financial Highlights (Standalone) (Rs. In Crore)
Description 201003 200903 200803 200703 200603
Equity Paid
Up
1114.81 1113.21 1112.6 899.27 889.8
Reserve 50503.48 48419.73 45357.53 23413.92 21316.16
Deposits 202016.6 218347.83 244431.05 230510.19 165083.17
Gross Block 7114.12 7443.71 7036 6298.56 5968.57
Interest
Earned
25706.93 31092.55 30788.34 21995.59 14306.13
Operating
Profit
9732.18 8925.23 7960.68 5874.41 3888.42
PAT 4024.98 3758.13 4157.73 3110.22 2540.08
Dividend % 120 110 110 100 85
Adj. EPS(Rs) 36.1 33.76 37.37 34.59 28.55
Adj. Book
Value(Rs)
463.02 444.95 417.67 270.37 249.56
Key Market Ratio (Standalone)
Key Market Ratio (Standalone):

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Latest EPS (Rs) 40.95
Latest CEPS (Rs) 45.11
Price/TTM CEPS(x) 22.91
TTM PE (x) 25.24
Price/BV(x) 2.14
EV/TTM EBIDTA(x) 20.29
EV/TTM Sales(x) 7.53
Dividend Yield% 1.16
Mcap/TTM Sales(x) 4.82
Latest Book Value (Rs) 482.44
Quarter on Quarter
Standalone) (Rs. In Crore)
Particulars 201012 201009 Q on Q Var% 200912 Y on Y Var%
Interest
Earned
6695.96 6309.1 6.13 6089.57 9.96
Total
Expenditure
1717.92 1570.37 9.4 1362.39 26.1
Operating
Profit
2342.61 2211.94 5.91 2368.84 -1.11
PAT 1437.02 1236.27 16.24 1101.06 30.51
PBIDTM% 34.99 35.06 -0.2 38.9 -10.05
PATM% 21.46 19.6 9.49 18.08 18.69
Adj. EPS(Rs) 12.48 10.74 16.2 9.88 26.32

Ankit Jaiswal
Interpretation
BETA:
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the
market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates
the expected return of an asset based on its beta and expected market returns.
Here beta is more than 1 (1.4927) beta of greater than 1 indicates that the security’s price will be
more volatile than the market. Stock’s beta is 1.4927; it’s theoretically 49.27% more volatile than
the market.
EPS:
EPS indicates the profitability of a company. Earnings per Share are the single most popular
variable in dictating a share’s price. Earnings per Share are the Net Income (profit) of a company

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divided by the number of outstanding shares. And here EPS of the company increasing. This shows
that company is earning profit.
P/E:
Price-to-earnings ratio (P/E) is probably the most widely used – and thus misused investing metric.
It’s easy to calculate, which explains its popularity. The most common way to calculate:
P/E = share price divided by earnings per share
DPS:
The sum of declared dividends for every ordinary share issued. Dividend per share (DPS) is the total
dividends paid out over an entire year (including interim dividends but not including special
dividends) divided by the number of outstanding ordinary shares issued. Dividends are a form of
profit distribution to the shareholder. Having a growing dividend per share can be a sign that the
company’s management believes that the growth can be sustained. Here dividend is highest in last 5
years; it indicates that company is growing YOY.
ICICI is having highest market capital, net profit and assets value as compared to competitors this
indicates that ICICI is most favourable company for investors.

Ankit Jaiswal
ICICI BANK LTD BALANCE SHEET:
DESCRIPTION Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
SOURCES OF FUNDS:
Share Capital 1114.89 1113.29 1462.68 1249.34 1239.83
Share Warrants
& Outstanding
0.00 0.00 0.00 0.00 0.00
Total Reserves 50503.48 48419.73 45357.53 23413.92 21316.16
Deposits 202016.60 218347.82 244431.05 230510.19 165083.17
Borrowings 94263.57 93155.45 65648.43 51256.03 38521.91
Other Liabilities
& Provisions
15501.18 18264.66 42895.38 38228.64 25227.88
Total Liabilities 363399.72 379300.96 399795.08 344658.11 251388.95
APPLICATION OF FUNDS :
Cash and balance
with Reserve
Bank of India
27514.29 17536.33 29377.53 18706.88 8934.37
Balances with
banks and money
at call
11359.40 12430.23 8663.60 18414.45 8105.85
Investments 120892.80 103058.31 111454.34 91257.84 71547.39
Advances 181205.60 218310.85 225616.08 195865.60 146163.11
Gross block 7114.12 7443.71 7036.00 6298.56 5968.57
Less:
Accumulated
Depreciation
3901.43 3642.09 2927.11 2375.14 1987.85
Less: Impairment of Assets
Net Block 3212.69 3801.62 4108.90 3923.42 3980.71
Lease Adjustment
Capital Work in Progress
Other Assets 19214.93 24163.62 20574.63 16489.92 12657.51
Total Assets 363399.72 379300.96 399795.08 344658.11 251388.95
Contingent
Liabilities
727084.06 834683.00 1211082.33 562959.91 395033.67
Bills for
collection
6474.95 6000.44 4278.28 4046.56 4338.46
Book Value 463.02 444.95 417.67 270.37 249.56
Adjusted Book
Value
463.02 444.95 417.67 270.37 249.56

Ankit Jaiswal

Ankit Jaiswal
ICICI BANK LTD PROFIT AND LOSS A/C:
DESCRIPTIO
N
Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
No of Months 12.00 12.00 12.00 12.00 12.00
I. INCOME
Interest
Earned
25706.93 31092.55 30788.34 21995.59 14306.13
Other Income 7477.65 7603.73 8810.76 6927.87 4180.89
Total Income 33184.58 38696.28 39599.11 28923.46 18487.02
II. EXPENDITURE
Interest
Expended
17592.57 22725.93 23484.24 16358.50 9597.45
Operating
Expenses
5859.83 7045.11 8154.18 6690.56 5001.15
Provisions
and
Contingencies
4386.86 3808.26 2904.58 2226.37 791.81
Profit Before
Tax
5345.32 5116.97 5056.10 3648.04 3096.61
Taxes 1320.34 1358.84 898.37 537.82 556.53
Total 29159.60 34938.14 35441.38 25813.24 15946.94
III. PROFIT AND LOSS
Profit After
Tax
4024.98 3758.13 4157.73 3110.22 2540.07
Extra items
Profit brought
forward
2809.65 2436.32 998.27 293.44 188.22

Ankit Jaiswal
Adjustments to PAT
Total Profit &
Loss
6834.63 6194.45 5156.00 3403.66 2728.30
IV.
APPROPRIAT
IONS
6834.63 6194.45 5156.00 3403.66 2728.30
Equity
Dividend %
120.00 110.00 110.00 100.00 85.00
Earnings Per
Share
36.10 33.76 37.37 34.59 28.55
Adjusted EPS 36.10 33.76 37.37 34.59 28.55

Ankit Jaiswal
ICICI BANK LTD FINANCIAL RATIOS:
RATIOS 2010 2009 2008 2007 2006
Per Share Ratios
EPS 36.10 33.76 37.37 34.59 28.55
DPS 12 11 11 10 8.50
Profitability ratios
GP Ratio 15.06 12.36 12.99 11.41 15.10
NP Ratio 12.17 9.74 10.51 10.81 14.12
ROE 7.96 7.83 11.75 13.37 14.62
ROA 1.08 .96 1.12 1.04 1.21
Liquidity Ratios
Current Ratio 1.94 0.78 0.72 0.61 0.62
Quick Ratio 14.70 5.94 6.42 6.04 6.64

Ankit Jaiswal
Interpretation:
Earnings per share (EPS):
EPS is the profitability of the firm measures in terms of number of equity shares, which is derived
by dividing the profit after tax by the number of equity shares. EPS calculation in a time series
analysis indicates whether the firm EPS is increasing or decreasing.
Over the years EPS of the firm is increasing which indicates that per share earnings of the firm has
increased, but this increase in EPS is erroneous in the sense that the real earnings (ROE) have not
increased.

Ankit Jaiswal
Dividend per share (DPS):
Sometimes the equity shareholders may not be interested in the EPS but in the return which they are
actually receiving from the firm in the form of dividends. The amount of profits distributed to
shareholders per share is known as DPS and it is calculated by dividing total profits distributed by
number of equity share.
Dividend per share over the years has increased which indicates that the amount of dividend
distributed towards the shareholder has increased.

Ankit Jaiswal
Gross profit ratio:
The GP ratio is also called the average mark up ratio. It is calculated by comparing the gross profit
of the firm with the net sales.
In 2007 GP ratio had drastically fallen, which means operating efficiency of the firm has decreased
but it has recovered over the next three years and become almost stable.
Net profit ratio:
The NP ratio establishes the relationship between the net profit (after tax) of the firm and the net
sales. Its measures the efficiency of the management in generating additional revenue over and
above the total cost of operations.
Net profit ratio has decreased over the years which mean that the overall profitability of the firm has
fallen down.

Ankit Jaiswal
ROE:
ROE examines profitably from the perspective of equity investors by relating profits available for
the equity share holders with the book value of equity investments. The return from the point of
view of equity shareholders may be calculated by comparing the net profit less preference dividend
with their total contribution to the firm.
Over the years ROE of the firm have declined which indicates that the funds of the owner have not
been used properly by the firm, and the firm has not been able to earn satisfactory return for the
owner.

Ankit Jaiswal
ROA:
ROA measures a profitability of the firm in terms of assets employed in the firm. ROE is calculated
by establishing the relationship between the profits and the assists employed to earn that profit.
ROA shows as to how much is the profit earn by the firm per rupee of assets used. ROA of the firm
over the year is almost stable.
Current Ratio:
Current ratio shows the firm’s ability to pay its current liability out of its current assets. Generally a
current ratio of 2:1 is considered to be satisfactory but sometimes it varies from industry to industry
therefore the firms current ratio should be compared with the standard for the specific industry only.
Current ratio of the firm has increased over the year which indicates that the firm has enough current
assets to pay off its current liability.

Ankit Jaiswal
Quick ratio:
This ratio establishes the relationship between quick current assets and current liabilities. Quick
current assets excludes inventory and prepaid expenses from current assets as they are potentially
illiquid. This calculated by dividing quick assets by total current liabilities. Generally a quick ratio
of 1:1 is considered to be satisfactory.
Quick ratio of the firm is much higher than the ideal and its increasing over the years which means
that the firm has enough quick assets to pay off its current liability.
ICICI BANK LTD VALUATION RATIO:
DESCRIPTIO
N
Adjusted PE
(x)
26.39 9.85 20.61 24.67 20.64
PCE(x) 23.59 8.76 18.81 22.13 18.16
Price / Book
Value(x)
2.06 0.75 1.84 3.16 2.36
Dividend
Yield(%)
1.26 3.31 1.43 1.17 1.44
EV/Net
Sales(x)
7.80 4.19 4.93 5.83 6.38

Ankit Jaiswal
EV/EBITDA(x
)
20.60 14.59 19.05 21.84 23.48
EV/EBIT(x) 8.74 4.68 5.31 6.41 7.19
EV/CE(x) 0.55 0.34 0.38 0.37 0.36
M Cap / Sales 4.13 1.19 2.78 3.49 3.66
High PE 28.45 25.19 42.13 29.50 22.76
Low PE 10.35 7.03 20.61 15.96 13.24
ICICI BANK LTD CASH FLOW RATIO:
DESCRIPTIO
N
Cash Flow Per
share
16.77 -127.46 -104.54 256.45 52.29
Price to Cash
Flow Ratio
56.82 -2.61 -7.37 3.33 11.27
Free Cash
Flow per Share
102.15 241.13 198.79 -160.91 30.12
Price to Free
Cash Flow
9.33 1.38 3.87 -5.30 19.56
Free Cash
Flow Yield
0.11 0.72 0.26 -0.19 0.05
Sales to cash
flow ratios
13.75 -2.19 -2.65 0.95 3.07
Intrinsic value of ICICI Bank:
Year EPS P/E
2006 36.10 26.39
2007 33.76 9.85
2008 37.37 20.61
2009 34.59 24.67
2010 28.55 20.64

Ankit Jaiswal
1) Based on the past 5 year EPS data, estimated growth % can be determine. And the estimated
growth rate is 10.1%
2) Now, by using the current EPS we can compound it with the estimated growth i.e. 10.1%
3) Current EPS is 40.95 compounding of the EPS is 40.95+ (40.95*.101)=45.085
4) Now, based on the past 5 year P/E takes the average of P/E value which is 20.432
5) Now multiply the step 3 & 4 and we will get the estimated share price.
6) Estimated share price is 921.176 and current share price is 1033 which is higher than the
estimated its means that share price is overvalued and investor should sell the shares for short term.

Ankit Jaiswal
Expected Growth of ICICI in 2011 by Unicon Investment research report:
“ICICI Bank registered a good financial performance in Q4FY11 with standalone PAT up by 44%
to INR 14.52 Bn from INR 10.06 Bn in Q4FY10. The growth, being the highest in last 7 years, was
aided by increase in interest and non interest income. The QoQ increase in Net Interest Income was
better than expected (a rise of 23.3% from INR 20.35 bn in Q4FY10 to INR 25.10 Bn to Q4FY11).
Net interest margin increased QoQ & YoY by 10 bps to 2.7% respectively, on account of lower cost
of funds, lower delinquencies and growing CASA deposits.”
“CASA ratio increased from 41.7% in Q4FY10 to 45.1% in Q4FY11. The total deposits increased
by 11.7% YoY (INR 668.7 Bn on March 31,2011 as compared to INR 532.18 Bn in March
31,2010). Noninterest income decreased by 13.2% QoQ and 11.1% YoY; this was primarily
because of MTM loss in treasury income (Q4FY11 value stood at INR 1.96 Bn) and reduction in
other income by 73.6% (QoQ). However, fee income increased by 17.8% to INR 17.91 Bn on QoQ
basis. Advances increased YoY by only 19% which was lower than the industry level of 21%,
advances to domestic 71orporate increased by 42.6% YoY. The retail advances like vehicle loan and
home loan are expected to grow in the near future. The Net NPA‟s improved from 1.87% in
Q4FY10 to 0.94% of net advances in Q4FY11. Loan loss coverage ratio also increased to 76% on
March 31, 2011 from 59.5% in March 31, 2010, much above the RBI regulation of 70%. Operating
expenses rose YoY by 14.1% to INR 17.89 Bn in Q4FY11 from INR 14.58 Bn in Q4FY10. Credit
to deposit ratio from domestic business stood at 75%, Cost to income ratio was 42% due to healthy
operating income growth. This was on account of expanding network of the bank with 2529
branches and 6104 ATMs.”
“ICICI Bank’s growth in the past has been mainly retail-driven, the bank is now looking to grow its
large corporate and SME segment loan book as well. Progress on the „4C‟ strategy (CASA, capital
conservation, cost control and credit charges) has been good. At the CMP ICICI is trading at 2x of
its FY12E P/BV (standalone basis). We have Accumulate rating on the stock for a target price of
INR 1306,” says Unicon Investment research report.

Ankit Jaiswal
FINDINGS
(Chapter-7)

Ankit Jaiswal
In this project report there are many facts which say whether an investor should invest in ICICI
Bank or not. For the conclusion on this part, we have analyzed economic, industry as well as
company (ICICI Bank).
1) In the Economic Analysis we can see that economic is booming after 2009 and current position
shows that this is the good time to invest after the recession because GDP growth rate is increasing.
And overall economy is growing.
2) In the industry analysis here overall industry PAT is increasing over the years which means
banking industry is having much profit but on the other side banking industry Net Profit growth has
decreased very much so investor should invest carefully.
3) In the analysis of ICICI Bank we can see that EPS is increasing yoy. And dividend is also
increasing so investor can invest in the company but on other side we company‟s intrinsic value is
less than the current price it shows that the share price is overvalued and invester should sell the
share. But if investor want to invest in the company for long term than he can have a good profit
because company growing rapidly in terms of profit and net sales and its EPS & DPS are increasing
over the years.

Ankit Jaiswal
LIMITATIONS
Fundamental analysis has some limitation involved in it. This limitation can be explained as under:

Ankit Jaiswal
Time Constrain:
Fundamental analysis may offer excellent insights, but it can be extraordinarily time-consuming.
Time-consuming models often produce valuations that are contradictory to the current price
prevailing on the exchange.
Company Specific:
Valuation techniques vary depending on the industry group and specifics of each company. For this
reason, a different technique and model is required for different industries and different companies.
This can be quite time-consuming process, which can limit the amount of research that can be
performed. The sales and inventory ratio may be very important for the cement sector company but
these ratios are not very useful for the banking sector.
Inadequacies of Data:
While making analysis one has to often wrestle with inadequate data. While deliberate falsification
of data may be rare, subtle misrepresentation and concealment are common.
Future Uncertainties:
Future changes are largely unpredictable; more so when the economic and business environment is
buffeted by frequent winds of change. In an environment characterized by discontinuities, the past
record is a poor guide to future performance.
Irrational Market Behaviour:
The market itself presents a major obstacle while making analysis on account of neglect or
prejudice, undervaluation may persist for extended periods; likewise, overvaluations arising from
unsatisfied optimism and misplaced enthusiasm may endure for unreasonable lengths of time.

Ankit Jaiswal
CONCLUSION

Ankit Jaiswal
Fundamental analysis holds that no investment decision should be without processing and analyzing
all relevant information. Its strength lies in the fact that the information analyzed is real as opposed
to hunches or assumptions. On the other hand, while fundamental analysis deals with tangible facts,
it does not tend to ignore the fact that human beings do not always act rationally. Market prices do
sometimes deviate from fundamentals. Prices rise or fall due to insider trading, speculation, rumor,
and a host of other factors.
Fundamental analysis is based on the analysis of the economic, industry as well as the company and
in this research we can see that the economic indicators have an effect on the bank growth and
assets.
The above report says that our economic is growing after the recession and it is the good time for
the one who want to invest. and according to the industry analysis investor can invest in the banks
but he/she should be careful for the investment. But according to financial analysis of ICICI bank its
performance in the private industry is good and expected to grow further in the near future which is
a good sign for investment. EPS and dividend both are increasing yoy and it‟s on the top in terms of
profit and net interest income if we compared it with the other banks in the same industry but we
can‟t ignore the intrinsic value of the company which is lower than the current value which shows
then investor should sell the share of the company if he/she is investing for short term and for long
term it is good for investor to invest in the company.

Ankit Jaiswal
SUGGESTION

Ankit Jaiswal
The analysis carried out at on the ICICI Bank, their profit and loss account, balance sheet and ratios.
I shall suggest the investors to invest in ICICI Bank than the other banks as a value investment.
Reasons:
Largest private sector bank in India, second largest in entire banking
Industry
Strong increase in profit year-on-year basis.
Increasing EPS indicate good earnings.
Increase in sharing profit with shareholders in form of dividend.
ICICI Bank is expanding its footholds on international level also; its
Insurance and asset management business are also performing well.

Ankit Jaiswal
BIBLIOGRAPHY

Ankit Jaiswal
Books:
Investment Analysis & Portfolio Management- Prasanna Chandra.
Financial management – R.P Rustagi
ACE EQUITY data base Websites:
www.google.com
www.icicibank.com
www.rbi.org.in
www.moneycontrol.com
www.equitymaster.com
mwww.nseindia.com
http://www.business-standard.com/india/index2.php
http://economictimes.indiatimes.com/
http://en.wikipedia.org/wiki/Magnetic_ink_character_recognition

Ankit Jaiswal
http://finance.indiabizclub.com/info/indian_banking_industry
http://finance.indiamart.com/investment_in_india/banking_in_india.html

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