MBFI ASSIGNMENT

SWOT Analysis of ICICI BANK

Submitted to

Prof. N.R.Bhusnurmath

MDI Gurgaon

Submitted by-

Rudranil Dutta
09P165
 Table of Contents

INTRODUCTION................................................................................................................3

FINANCIALS OF ICICI BANK........................................................................................5

SWOT ANALYSIS OF ICICI BANK................................................................................6

CONCLUSION.....................................................................................................................9

REFERENCES.....................................................................................................................9

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ACKNOWLEDGEMENT

I would like to take this opportunity to express our deepest gratitude to our guide,
Dr.N.R.Bhusnurmath for letting me take up this project, whereby I got an exposure to study
and analyse the strengths and weaknesses of ICICI bank. Sir has provided constant support
and guidance throughout the duration of the project without which I would not have been
able to successfully complete it.

There are many more people we would like to thank. They are the ones who have submitted
previous reports on the same lines who helped me complete the project.

INTRODUCTION

ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India's largest
private sector bank in market capitalization and Net Interest Income and second largest
overall in terms of assets. ICICI Bank has total assets of about USD 81 Billion (end-Mar
2010), profit after tax USD 896 million, a network of 2506 branches & extension counters,
and about 5808 ATMs at March 31, 2010. ICICI Bank offers a wide range of banking
products and financial services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the areas of investment
banking, life and non-life insurance, venture capital and asset management. ICICI Bank's
equity shares are listed in India on stock exchanges at Kolkata and Vadodara, the Stock
Exchange, Mumbai and the National Stock Exchange of India Limited and its ADRs are
listed on the New York Stock Exchange (NYSE). The Bank went on to cross-sell and up-sell
its products aggressively, growing into India’s second largest bank. But ICICI was not only
looking at banking. In 1993, the company set-up ICICI Securities and Finance Company
Limited in a joint venture with JP Morgan, and the same year, it set up ICICI Asset
Management Company. This was the just the beginning; several mergers, acquisitions and
joint ventures followed.

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ICICI is one of the leading private sector banks in India, which combines financial strength
with a reputation for innovation and a universal culture that embraces change. ICICI, a
colossal presence on the Indian financial scene, has an element of enormity in all that it does
from ambition to projections and achievements.

ICICI’s impressive rise over the last couple decades cannot be denied, but now as the brand
starts to over extend with a dizzying array of products and services, one worries that an
impressive fall may follow.

Description Details

Industry Bank – Private

House Private

BSE Code 532174

NSE Code ICICIBANK

Incorporation Year 1994

Landmark,Race Course Circle,Alkapuri Vadodara,

Registered Office
Gujarat-390007 .

ISINNO INE090A01013

Industry Bank – Private

Chairman K V Kamath

Managing Director Chanda D Kochhar

Company Secretary Sandeep Batra

Listing BSE,NSE,Luxembourg, New York

SHAREHOLDING PATTERN (%)

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 SHAREHOLDING PATTERN OF ICICI BANK LTD
7% 27%

MF/Banks/indian FIs
FIIs/NRIs/OCBS
Indian public

66%

FINANCIALS OF ICICI BANK

The financials of ICICI for the last 5 years are represented as follows:

Financial Highlights

  Rs. Billion  

Fiscal Fiscal %
Particulars 2009 2010 change

Net interest income and other income 159.7 155.92 -2.4%

Operating Profit 89.25 97.32 9.0%

Provisions & Contingencies 38.08 43.87 15.2%

Profit before tax 51.17 53.45 4.5%

Profit after tax 37.58 40.25 7.1%

Consolidated profit after tax (Excludes provisions for

taxes) 35.77 46.7 30.6%

Performance Review – Quarter and year ended March 31, 2010

35% year-on-year increase in standalone profit after tax to Rs. 1,006 crore for the quarter
ended March 31, 2010 from Rs. 744 crore for the quarter ended March 31, 2009
Highest ever consolidated profit after tax of Rs. 4,670 crore for the year ended March 31,
2010; 31% increase from Rs.3, 577 crore for the year ended March 31, 2009.

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Current and savings account (CASA) ratio increased to 41.7% at March 31, 2010 from 28.7%
at March 31, 2009

Net non-performing asset ratio decreased to 1.87% at March 31, 2010 from 1.96% at March
31, 2009 and 2.19% at December 31, 2009
Strong capital adequacy ratio of 19.4% and Tier-1 capital adequacy of 14.0% well above
RBI’s requirement as per Basel II norms of total capital adequacy of 9.0% and Tier-1 capital
adequacy of 6.0%
Dividend of Rs. 12 per share proposed

SWOT ANALYSIS OF ICICI BANK

 Strengths:

1) Online Services: ICICI Bank provides variety of online services for all its banking
facilities. It also provides D-Mart account facilities on-line, so a person can access his
account from anywhere he is. [D-Mart is a dematerialized account opened by a salaried
person for purchase & sale of shares of different companies.]

2) Advanced Infrastructure: Branches of ICICI Bank are well equipped with advanced
technology to provide the customers with taster banking services. All the computerized
machines are located in suitable manner & are very useful to the customers & staff of the
bank.

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3) Friendly Staff: The staff of ICICI Bank in all branches is very friendly & helps the
customers in all cases. They provide faster services along with bonding & personal
relationship with the customers.

4) 12 hrs. Banking services: Compared to other bank ICICI bank provides long hrs. of
services i.e. 8-8 services to the customers. This service is one of it’s kind & is very helpful
for the customers who are in urgent need of money.

5) Other Facilities to the Customers & Employees: ICICI Bank also provides other facilities
like drinking water facilities, proper sitting arrangements to the customers. And there are also
proper Ventilation & sanitary facilities for the employees of the bank.

6) Late night ATM services: ICICI bank provides late night ATM services to the customers.
The ATM centers of ICICI bank works even after 11:00pm. at night in certain branches.

 Weakness:

1) High Bank Service Charges: ICICI bank charges more to customers for the services
provided by them when compared to other bank & that is why it is only in the reach of higher
class of society.

2) Less Credit Period: ICICI bank provides credit facilities but only upto limited period.
Even when the credit period is not over it sends reminder letters to the customers which may
annoy them.

 Oppurtunities:

1) Bank –Insurance services: The bank should also provide insurance services. That means
the bank can have a tie-up with an insurance company. The bank will advertise & promote
the different policies introduced by the insurance company & convince their customers to buy
insurance policies

2) Increase in percentage of returns: The bank should provide higher returns on deposits in
comparison of the present situation. This will also upto a large extent help the bank earn
profits & popularity.

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3) Recruit professionally guided students: Bank & Insurance is a special non-aid course
where the students specialize in the functioning & services of the bank & also are knowledge
about various tax policies. The bank can recruit these students through tie-ups with colleges.
Such students will surely prove as an asset to the bank.

4) Associate with social cause: The bank can also associate itself with social causes like
providing relief aid patients, funding towards natural calamities. But this falls in the 4th
quadrant so the bank should neglect it.

 Threats

1) Competition: ICICI Bank is facing tight competition locally as well as internationally.

Bank like CITI Bank, HSBC, ABM, Standard Chartered, HDFC also provide equivalent
facilities like ICICI do and also ICICI do not have consistency in its international operation.

2) Net Services: ICICI Bank provides all kind of services on-line. There can be easy access
to the e-mail ids of the customers through wrong people. The confidential information of the
customers can be leaked easily through the e-mail ids.

3) Decentralized Management: Each branch manager is given the authority of taking

decisions in their respective branches. The decisions made by different managers are diverse
and any one wrong decision can laid to heavy losses to the bank.

4) No Proper Facilities To Uneducated customers: ICICI Bank provides all services through
electronic computerized machines. This creates problems to the less educated people. But this
threat falls in the 4th quadrant so it’s negligible. The company can avoid this threat.

CONCLUSION

Thus, ICICI has been able to use technology to provide value-added service to its customers
during the last few years. For ICICI, technology is an integral part of their business.
However, their overall progress could have been smoother but for certain internal and
extraneous factors and also a pressure on spread due to a competitive market (Annual report,
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2000 –01). E-banking has become a necessary survival weapon and is fundamentally
changing the banking industry worldwide. Today, the click of the mouse offers customers
banking services at a much lower cost and also empowers them with unprecedented freedom
in choosing vendors for their financial service needs. No country today has a choice- whether
to implement E-banking or not given the global and competitive nature of the economy.
ICICI have to upgrade and constantly think of new innovative customized packages and
services to remain competitive. The invasion of banking by technology has created an
information age and commoditization of banking services. ICICI have come to realize that
survival in the new e-economy depends on delivering some or all of their banking services on
the Internet while continuing to support their traditional infrastructure. The rise of E-banking
is redefining business relationships and the most successful banks will be those that can truly
strengthen their relationship with their customers. Without any doubt, the international scope
of E-banking provides new growth perspectives and Internet business is a catalyst for new
technologies and new business processes.

REFERENCES

1. www.moneycontrol.com

2. Asian CERC

3. www.investopedia.com

4. www.icicibank.com

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