A Comparative Study On Pre-

merger & Post merger

Performance Of ICICI Bank

SUBMITTED TO: SUBMITTED BY:

MR. TANVIR MD. HAYDER
ARIF

ASSOCIATE PROFESSOR

DEPARTMENT OF FINANCE &

BANKING

UNIVERSITY OF CHITTAGONG
Group : Group Member List
SL. No. Name ID Remarks

1. Antora Mondol 08303001

2. Tanvia Raihan 08303014

3. Subrina Alamgir 08303046

4. Moushumi Sarker 08303063

5. Tamkina Chowdhury 08303105

 Letter of Submission
Date: September 19, 2013
To
Mr. Tanvir MD. Hayder Arif
Associate Professor
Department of Finance and Banking
University of Chittagong
Subject: Submission of Assignment

Sir,

With due respect we would like to submit our report on - A Comparative Study On Pre-
merger & Post merger Performance Of ICICI Bank. It was both a pleasure and a
challenge to study such topic. We hope that our assignment will please you and meet
your satisfaction by serving its purpose.
We sincerely pray and hope that the assignment will meet your expectation and will serve
its purposes your kind consideration might help me a lot. We sincerely hope this report
will receive your attention and approval.

Thanking you with best regards.

Sincerely yours,
Group –
M.B.A
Session: 2011-2012
Department of Finance and Banking
University of Chittagong.
 Preface
To keep the head high in globalized economy one has to follow the path of growth, which

contains various challenges and issues; one has to overpower these challenges and issues

to become a success story. We consider a case of ICICI Bank Ltd., the largest private

sector bank in India, which has recently acquired Bank of Rajasthan. Therefore, the aim

of this study is to make a comparative study of pre-merger and post-merger performance

of ICICI Bank. This article is divided into four parts. The first part includes introduction

and conceptual framework of mergers and acquisition. The second part discusses the

acquisition of Bank of Rajasthan. The third part discusses the financial performance of

ICICI Bank before merger and after merger in detail. Finally, the article concludes the

findings from the acquisition. The assignment will be helpful for policy makers, strategy

makers and investor.

 Acknowledgement
Thanks to Almighty who has given us the courage and energy for every work particularly

the activities of this study. In this competitive world every decision should be made with

care and analysis helps us to be careful in decision making. Practical knowledge is a must

for soundness of the theoretical knowledge. It is a great initiative by our honorable course

instructor Tanvir Mohammad Hayder Arif sir to assign us such an assignment which

helped us a lot in gathering practical knowledge of data gathering, critically evaluating

the financial matters of a company as well as comparative analysis of pre-merger and

post-merger financial performance of the selected company. Actually it created a way to

check our theoretical knowledge in applied form. It also created a way of practically

working in diverse group. We are thankful to all of the sources of information we used

and consulted in doing our assignment.

 Executive Summary

Mergers and acquisitions (M & A) have been a very important market entry strategy as

well as expansion strategy. This present era is known as competition era. In this era

companies to avoid the competition, go for merger, and enjoys sometimes monopoly.

Liberalization and technological advances are increasingly pushing the banking sector

towards greater globalization to improve the operational flexibility of Banks, which is

crucial in the competitive environment that banks operate in. The present study is mainly

based on secondary data. In order to evaluate financial performance, Ratio analysis,

common size financial statements have been used as tools of analysis.

It is found that overall the merger and acquisition does not effect of the financial position

of banks except when a weaker & non-viable banks are merged with a financially sound

and profit making bank in such case the profitability of the later bank will be affected.
 Table of Contents
Chapter No. Topics Page
Numbers

1 Introduction 1-3

2 Conceptual Framework of Merger and Acquisition 4-7

3 Pre-Merger & Post-Merger Performance Analysis of 8-32

ICICI Bank

4 Findings and Conclusion 33-34

Bibliography 35

Annexure 36-37
CHAPTER 1: INTRODUCTION

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1.1 Introduction
In the recent past, mergers and acquisitions are on a steady rise in the financial sector
caused by regulatory interventions of the State and also due to business environmental
reasons. Synergies arising from geographical diversification, increased efficiency, cost
savings and economies of scale are the motivation drivers behind mergers across the
world. M&As have become a major strategic tool for achieving the same and it is
imperative to avoid the possibilities of small banks from becoming the target of huge
foreign banks which are expected to come to India. Based on the motives, merger deals
are grouped into 3 categories viz, Voluntary Merger, Compulsory Merger and Universal
Banking Model. The merger of ICICI Bank - Bank of Rajasthan is the seventh voluntary
merger and the latest in India after the merger of HDFC Bank - Centurion Bank of Punjab
in the year 2008.

This deal also got lots of attention because of poor corporate governance of the target
bank and cancellation of Extra Ordinary General Meeting (EGM) by the Calcutta District
Civil Court. In this case, an attempt has been made to analyse the impact of strategic
features of the banks on post merger performance.

1.2 Objectives of the Study

It is seen that, most of the works have been done on trends, policies & their framework,
human aspect which is needed to be investigated, whereas profitability and financial
analysis of the mergers have not give due importance. The present study would go to
investigate the detail of Merger and Acquisitions (M&As) sector. The objective of the
study is to make a comparative analysis of the pre and the post merger performance of
the selected entity.

2|Page
1.3 Methodology of the study
 Data collection
To conduct a study properly designing of the process is essential because reliability and
validity of the outcomes of a study depends on the reliable data and information. In this
connection some activities has been carried out to collect data and information. For the
purpose of evaluation of investigation data is collected from merger and Acquisition
(M$As) of Indian Banking Industry. The data is collected from secondary sources such
as-

o Annual Reports of Bank of Rajasthan and ICICI Bank

o Website of the banks
o Internet

 Methodology
To analyse the post and pre-merger financial performance of the banks various financial
ratios and common size financial statements are used for comparison.

1.4 Limitations of the study

Though humble attempt is made to analyze the pre and post merger financial
performance of the selected banks it is difficult to narrate all incidents and change
brought up due to merger and acquisitions.

Secondly, the study is based purely on secondary data which are taken from financial
statement of the case through Internet only and therefore cannot be denied for any
ambiguity in the data used for the analysis.

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CHAPTER 2: CONCEPTUAL FRAMEWORK
OF MERGER AND ACQUISITION

4|Page
2.1 Concept of Merger and Acquisition
The concept of mergers and acquisitions is very much popular in the current scenario.
The winds of Liberalization, Privatization and Globalization (LPG) are blowing over all
the sectors of the economy but its maximum impact is seen in the industrial sector. It
caused the market to become hyper-competitive, to avoid unhealthy competition and to
face international and multinational companies.

2.1.1 Meaning and Definition of Merger and Acquisition

 Merger
Merger is defined as combination of two or more companies into a single company where
one survives and the other lose their corporate existence. The survivor acquires the assets
as well as liabilities of the merged company or companies.

According to the Oxford Dictionary the expression merger or amalgamation means

“Combining of two commercial companies into one” and “Merging of two or more
business concerns into one” respectively. A merger is just one type of acquisition. One
company can acquire another in several other ways including purchasing some or all of
the company‟s assets or buying up its outstanding share of stock.

To end up the word “MERGER” may be taken as an abbreviation which means:

M = Mixing

E = Entities

R = Recourses for

G = Growth

E = Enrichment and

R = Renovation.

 Acquisition
Acquisition in general sense is acquiring the ownership in the property. Acquisition is the
purchase by one company of controlling interest in the share capital of another existing
company. This means that even after the takeover although there is change in the
management of both the firms retain their separate legal identity.

5|Page
2.2 Mergers Vs Acquisition
Although these are often used as synonymous, the terms „merger‟ and „acquisition‟ mean
slightly different things. When a company takes over another one and clearly becomes
the new owner, the purchase is called an acquisition. From the legal point of view, the
target company ceases to exist and the buyer „swallows‟ the business and stock of the
buyer continues to be traded.

In the pure sense of the term, a merger happens when two firms, often about the same
size, agree to go forward as a new single company rather than remain separately owned
and operated. This kind of action is more precisely referred to as a “merger of equals”.
Both companies‟ stocks are surrendered and new company stock is issued in its place.

2.3 Objectives of Merger and acquisition

The main objectives behind merger and acquisitions may be highlighted as under:

 To restrict competition and prevent overcrowding of banks

 To expand market without competing.
 To gain economies of scale with less amount of investment.
 To utilize under and unutilized resources so that the banks can compete the foreign
banks in global era.

2.4 Benefits of merger and acquisition

Banks
The fruits of Merger and Acquisitions for banks are reducing unhealthy competition
amongst banks, sound financial position, huge business, large assets, benefits of core
banking solutions, networking and technological advancements at low cost, low cost of
maintenance and human resource management, large profits, larger customer coverage.
Moreover, recapitalization of weaker banks in the lights of Basel – II Norms.

Customers
Customers are also benefited by better and faster services, competitive pricing of all
products and services, increased number of branches, improved and upgraded
technology, etc.

6|Page
 Depositors
Depositors have better investment opportunity, negotiable environment, higher dividends,
etc.

Other related parties

They get Indian banks of International Standards, sound and large Indian Banks, no risk
in performance of contracts and higher dividends, better and huge deals with one banks
rather than two or more etc.

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CHAPTER 3: Pre-Merger & Post-Merger
Performance Analysis of ICICI Bank

8|Page
3.1 Profile of the Bidder and Target Banks
 ICICI Bank

 Industrial Credit and Investment Corporation of India (ICICI) is the second largest
bank in India and the biggest in the private sector. It started its operations in 1994 as
a new generation private sector bank. ICICI Bank is the first Indian bank to be listed
on the New York Stock Exchange with US GAAP accounting and has a worldwide
presence including in the UK and Canada.

 Merger experience: The bank has been using mergers as a strategy to expand their
geographical coverage, increase customer base and to meet regulatory requirements
since the year 2000. The present merger with BoR is the 4th acquisition of ICICI
Bank. The other deals are:

ICICI Bank- Bank of Madura in 2000

ICICI Bank- ICICI Ltd in 2002

ICICI Bank- Sangli Bank in 2006

 Focus: ICICI Bank aims at long-term wealth creation through „Cs‟ strategy of
Current Account Savings Account (CASA) growth, cost control, credit quality and
capital preservation.

 Size and distribution reach: The number of branches and ATM counters were
1,709 and 5219 respectively at the end of fiscal 2010. The Bank has a total business
of 3,832,222 million as of 31.03.2010 and has 37,000 employees with a business per
branch of 304 crore.

9|Page
 Bank of Rajasthan

 Bank of Rajasthan is an old private sector bank which has a strong presence in the
northern part of India with registered office at Udaipur, Rajasthan. It started its
operation in the year 1943.

 Branch network: Bank has a branch network of 466 branches out of which 280
were in Rajasthan with 4000 employees. Further, the bank sponsors Mewar
Aanchalik Gramin Bank (MAGB) which was established in 1983 under the RRB
Act, 1976.
 Asset base: The Bank‟s asset base and number of customers stands at 173000
million and 3 million respectively as on 31st March 2010.

 Business: The total business amounted to 233,918 million and the business per
branch is 47 crore.
 Efficiency: BoR reported a net loss of 102.13 crore in 2009-10 against a profit of
117.71 crore in the previous financial year.

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3.2 Background of the Deal - Regulatory Issues

The promoters of the Bank of Rajasthan (BoR) have been under huge pressure from
regulatory authorities to restructure the Bank for a variety of problems from 2009
onwards. BoR, controlled by Tayal Group, had been asked by the RBI (Reserve Bank of
India) to lessen their shareholding to below 10% from 28%. According to SEBI, the
promoter‟s shareholding in the old private sector bank accounted to 55%. On February
26, 2010, the RBI levied a penalty of 25 lakhs for a series of violations including
irregular property deals, actions against money laundering norms, deletion of corporate
records from the information systems, irregularities in the accounts of corporate groups,
extension of repayment period over permissible limits on intra-day overdraft, lack of
enough credit committees and poor corporate governance. Further, the RBI appointed a
new CEO and nominated 5 directors for the Bank. Following this, SEBI banned 100
entities holding BoR Shares for the sake of their promoters from stock market activities.
The RBI then asked the BoR to perform an audit of „internal delegation of sanctioning
powers followed by the banks‟ and the provisioning procedure of bad debts. Due to a
series of actions from the regulators, the Tayal family decided to merge the bank with
ICICI Bank, the second largest bank in India which was looking for a target to increase
their customer base and geographical reach in northern India.
In the probability of RBI favoring the decision, ICICI Bank will get the control of 83
branches of Mewar Aanchalik Gramin Bank (MAGB), a regional rural bank sponsored
by the BoR.

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Table 1 - Important dates in ICICI Bank- Bank of Rajasthan Merger

RBI imposed penalty of 25 lakhs on BoR February 26,2010

because of serious violations
SEBI banned 100 entities allegedly holding BoR March 8,2010
shares
RBI ordered special audit March 9,2010

Rapid round of negotiations and due diligence May 6 - May 17,2010

Merger news on newspaper May 18, 2010

Board meeting approval of both the banks May 23, 2010

BoR cancels EGM on Calcutta Civil Court order June 20, 2010

BoR seeks legal advice on validity of EGM June 22, 2010

Information to Stock Exchange June 23, 2010

Submits application to RBI for approval June 24, 2010

RBI approval Aug 12, 2010

Pre-merger Strategies
Prior to merger, ICICI Bank has been focusing its attention on positioning its balance
sheet for growth and focusing on the 4Cs: CASA, Costs, Credit, Quality and Capital. The
overall aim has been to- Defend market leadership through consolidation, Improve
presence in Northern India to become a truly pan-Indian bank, Improve top-line through
increased customer acquisition, Reduce non-performing assets from the current levels of
5.06%, and Improve Asset-Liability Management. Also, ICICI Bank followed a strategy
of „Product-focus‟ prior to merger. In terms of composition of advances, ICICI was
focused on retail finance, services, petroleum, infrastructure, iron & steel.

Unlike ICICI Bank, that had a balanced mix of internal and external business focus, BoR
largely focused on its internal troubles in the year prior to merger and had strategies
aligned to the same as well. The strategy of BoR has been to- improve Corporate
Governance, Cut down the high credit costs and employee costs to improve the bottom
line, Improve the CAR to regulatory minimum, and Improve branch presence. In terms of

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composition of advances, BoR had a strong focus on infrastructure and metals & mining.
BoR also had a strong presence in SMEs by virtue of the location advantage of its
branches and strong link-up with RRBs, especially in the sectors of textiles,
pharmaceuticals and chemical, and gems & jewellery.

3.3 Amalgamation of the Bank of Rajasthan

On May 23, 2010, the Board of Directors of ICICI Bank and the Board of Directors of
The Bank of Rajasthan Limited (BoR), an old private sector bank, at their respective
meetings approved an all-stock amalgamation of Bank of Rajasthan with ICICI Bank at a
share exchange ratio of 25 shares of ICICI Bank for 118 shares (1:4.72) of Bank of
Rajasthan. Deal envisages one ICICI Bank share for every 4.72 of BoR‟s.

The shareholders of ICICI Bank and Bank of Rajasthan approved the scheme of
amalgamation at their respective extra-ordinary general meetings. RBI approved the
scheme of amalgamation with effect from close of business on August 12, 2010.

3.3.1 Merger Analysis

Merger
ICICI bank approved merging of Bank of Rajasthan (BoR) with itself on 18 May 2010.
The share swap ratio was announced at 25:118 (25 shares of ICICI Bank for 118 shares
of BoR). The Reserve Bank of India on 13th August 2010 gave its nod to the merger.
Following the sanctioning of the scheme of amalgamation of Bank of Rajasthan with
ICICI Bank, all branches of BoR started functioning as branches of ICICI Bank with
effect from August13.

Deal Structure
The amalgamation of Bank of Rajasthan by ICICI was a no-cash deal. The deal was
valued at ₹30.41 billion. Each share of BoR was valued at ₹189/- giving a premium of
around ₹90 per share. On price per branch basis, ICICI paid ₹65.7 million per branch.
ICICI offered the smaller bank‟s controlling shareholders 25 shares in ICICI for 118
shares of Bank of Rajasthan.

The deal, which would give ICICI a sizeable presence in the northwestern desert state of
Rajasthan, valued the small bank at about 2.9 times its book value, compared with an
Indian banking sector average of 1.84. Bank of Rajasthan had a network of 463 branches
and a loan book of 77.81 billion rupees.

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 Table 2: Value of Deal

Particulars Swap Ratio Outstanding Price per Market Deal Value

Shares share before Capitalization (Crore)
(crores) announcement (crore)
ICICI 25 111 ₹889.35 ₹99221 ₹3041
BoR 118 16 ₹99.5 ₹1597

Valuation of Bank of Rajasthan

Here we can determine the fair market value of Bank of Rajasthan based on Price to
Book Ratio. The following table gives P/B ratio of some private banks which can be
compared with the BOR( We have excluded high profile private banks like HDFC,
ICICI, Axis Bank etc)

Table 3: Value of Deal-A Comparables approach

Bank P/B Ratio

Dhanalakshmi Bank Ltd 2.2
Karur Vysya Bank Ltd 2.0
City Union Bank Ltd 1.9
ING Vysya Bank Ltd 1.7
Development Credit Bank Ltd 1.6
United Western Bank Ltd 1.4
Jammu and Kashmir Bank Ltd 1.2
South Indian Bank Ltd 1.2
Federal Bank Ltd 1.1
Karnataka Bank Ltd 1.1
Lakshmi Vilas Bank Ltd 1.1
Average 1.5

The average price to book ratio comes to be around 1.5. Using this ratio and calculated
book value of 1048.8 crore we have value of BOR = 1.5 x ₹1048.8 = ₹1573 crore. The
deal value of more than 3000 crore is quite expensive in this regard which values BOR at
almost twice the current value.

Here, it is seen that the value of BoR determined by Comparable P/B Ratio is
approximate to market value of equity of BoR which is ₹ 1597 crore.

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So, goodwill created through this acquisition is as follows-

Goodwill = Price Paid – Market Value of Target Firm (BoR) Equity

= ₹ 30.41 billion – ₹ 15.97 billion

= ₹ 14.45 billion

As this acquisition has been executed through the transfer of shares, so the amount of
goodwill has been transferred to the shareholders of Bank of Rajasthan in the form of
premium of ₹ 90 per share.

The deal was done through stock swap. Initially it was supposed to be 1:3, but later the
swap ratio was fixed at 25:118 as mentioned in Table 2; means 25 shares of ICICI for
118 shares of BoR. The swap ratio was around 90% premium over the market pricing of
BoR. Since the deal was a no-cash one, ICICI just had to dilute its 3% equity for this
deal. The net worth of BoR at the time of merger was estimated at around Rs 760 crore
and that of ICICI Bank Rs 5,17,000 crore. Also, in the quarter ending Dec 2009, BoR
reported a loss of Rs 44 crore on an income of Rs 373 crore. So, ICICI had to take in
these losses too.

Integration Process
The final approval for the amalgamation of BoR by ICICI happened on August 12, 2010
.The integration process started after this date. The main part of the amalgamation was
the integration of IT systems and the employees. ICICI agreed to implement the systems
the bank uses in already existing branches to the BoR branches so as to extend the similar
services to the custome₹ The IT and the ATMs connectivity are established as of now .
Deposit mobilization from retail customers and advances processing is currently being
done, while maintaining continuity in products and charges.

The main apprehensions were about taking the BoR employees as part of ICICI. But,
around 4000 employees of BoR were ready to join the ICICI, although they raised some
concerns when the deal was initially announced in May 2010. Also, the average age of
employees at BoR was around 53, whereas in ICICI it was very much lower. So, the BoR
employees were also apprehensive about their future amidst the merger. But as per the
amalgamation agreement, ICICI promised to absorb all the BoR employees, although the
individuals had the option to leave, if they wanted to leave. But this integration is also
smoothly done and these employees are now officially ICICI bank employees.

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3.4 Merger Announcement, Share Price Movements and
Shareholding Pattern Changes

Mergers and takeovers are important events in the life of any company. Merger
announcements have a significant impact on the share prices of both the bidder and target
banks. There is concrete evidence for wealth shifting in the global arena from bidder
bank shareholders to target bank shareholders and vice versa. The present deal appears
more favourable to BoR since their shareholders gained almost 90% between 07.05.2010
(the start of merger negotiations) and 23.05.2010 (Board Meeting approval).

Table 4: Swap ratio and relevant closing prices of banks

Particulars ICICI Bank Bank of Rajasthan

Swap ratio 1:4.72 ( 25:118)
Price before a day of 901.10 82.85
merger announcement
Price on the day of merger 809.20 99.45
announcement
Price after a day of merger 824.45 119.35
announcement
Source: Economic Times and website of NSE

The swap indicates that ICICI bank is paying a 90 per cent premium over stock‟s closing
price of Rs 99.50 on the Bombay Stock Exchange on Tuesday. The BoR stock touched a
52-week high on Tuesday, soaring 20 per cent. ICICI Bank‟s shares closed 1.45 per cent
lower at Rs 889.35 on a day when the benchmark Sensex rose by 0.24 per cent. The
valuation implied by the share exchange ratio is in line with the market capitalisation per
branch of old private sector banks in India.

For the purpose of analysis, the BoR share price data has been divided into three periods,
viz, Period I, Period II and Period III respectively. Period I pertains to the point starting
from February 26, 2010 (the day the RBI imposed the penalty) to May 6, 2010 (the day
before merger negotiations started). On February 26th, the closing price of BoR‟s scrip
was 61.8 and on 6th May, it was 84.7. This is the period where the bank faced serious
actions from the regulato₹ During this period, the bank‟s scrip value appreciated by
20.9% against the Bank Nifty return of 9.9%. BoR recorded a price of 66.85 and 62.5 on
March 8 (SEBI ban) and March 9 (RBI‟s special audit order) respectively.

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Figure 1: Share price movement of Bank of Rajasthan February 26 to May 6
(Period I)

Period II represents the time period from May 6 to May 17, 2010 (period of merger
negotiations).
On May 6th, BoR‟s scrip was at 84.7 and ICICI Bank was traded at 902.85. On May
17th, ICICI Bank and BoR recorded a price of 901.1 and 82.25 respectively. It indicates
that merger negotiation has a zero effect on the price of merging entities. The Bank Nifty
return for the period was 2.7%.

Figure 2: Share price movement of BoR and ICICI Bank after the merger
announcement (May 17 to June 28)

Period III comprises the time period after the merger announcement, i.e., May 18 to June
24, 2010. On June 24th, BoR filed the information about the merger to the Bombay Stock
Exchange. On May 16th, BoR‟s price was 82.85. After the announcement of the merger,
it shot up drastically to 99.45, 119.35, 131.30, 144.45, 158.9, and 162.3 on May 17th,
18th, 19th, 20th, 21th and 24th respectively. On the contrary, ICICI‟s price reduced from

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901.10 to 809.35. During the period, BoR gained about 77%, whereas ICICI lost 1.7% of
its value. It is interesting to note that Bank Nifty showed a decline of 4.6 % during this
period. Short term wealth creation of BoR can be read in line with the valuation and
fixation of swap ratio. The indicative price agreed by both the banks was 188 per share.
In the light of the present analysis, it can be concluded that there was not much
vulnerability in the prices during the negotiation period. But, after the announcement,
BoR‟s share price adjusted almost to the price offered by ICICI.

It is worthwhile to analyse the shareholding pattern of BoR for the 4th quarter of FY of
2009 and the first quarter of FY of 2010 in the context of „unusual actions‟ from the
authorities. Between 31.03.2010 and 30.06.2010, the holding of institutional investors
increased from 5.73% to 16.24% out of which FII‟s part increased from 2.34% to 8.95%.
Both the holding of body corporate and retail investors reduced considerably. This can be
interpreted as a case of information asymmetry and insider trading.

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Figure 3: Shareholding pattern of BoR as on 31st March 2010 and as on 30st June
2010

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 Table 5: Pre-Post Merger Financial Performance of ICICI Bank
Pre-Merger Period
Post-
Particulars Ratios of ICICI Bank Ratios of Bank of Merger
(Acquirer or Parent Rajasthan (Target Period
company) Company)
Mar Mar Mar Mar Mar
Mar '10 Mar '11
'09 '08 '10 '09 '08
Investment Valuation Ratios
Dividend Per Share 12 11 11 -- 0.2 0.5 14
Operating Profit Per Share
49.8 48.58 51.29 -8.47 8.73 9.26 64.08
(Rs)
Net Operating Profit Per
293.74 343.6 354.71 88.57 90.34 82.57 281.04
Share (Rs)
Free Reserves Per Share
356.94 351 346.21 8.88 15.77 16.57 358.12
(Rs)
Profitability Ratios
Interest Spread 5.66 3.66 3.51 4.65 7.03 5.53 4.01
Net Profit Margin 12.17 9.74 10.51 -6.85 7.81 9.75 15.91
Return on Investment (%) 44.72 56.72 62.34 177.5 185.5 173 42.97
-
7.79 7.58 8.94 18.29 21.75 9.35
Return on Net Worth(%) 18.86
Return on Assets Excluding
463.01 444.9 417.64 33.55 39.88 39.38 478.31
Revaluations
Return on Assets Including
463.01 444.9 417.64 58.04 64.8 69.81 478.31
Revaluations
Management Efficiency Ratios
Interest Income / Total
8.82 9.82 10.6 8.47 9.05 8.08 8.41
Funds
Net Interest Income / Total
4.08 3.99 4.29 2.4 2.85 2.73 4.01
Funds
Non Interest Income / Total
0.08 0.08 0.02 0.36 0.3 0.51 --
Funds
Interest Expended / Total
4.74 5.83 6.31 6.08 6.2 5.36 4.41
Funds
Operating Expense / Total
2.59 2.6 2.76 3.21 1.98 1.82 2.09
Funds
Profit Before Provisions /
1.41 1.3 1.4 -0.52 1.11 1.34 1.77
Total Funds
Net Profit / Total Funds 1.08 0.96 1.12 -0.61 0.73 0.84 1.34
Loans Turnover 0.17 0.18 0.2 0.18 0.19 0.17 0.17
Total Income / Capital
8.9 9.9 10.62 8.83 9.35 8.6 8.41
Employed(%)
Interest Expended / Capital
4.74 5.83 6.31 6.08 6.2 5.36 4.41
Employed(%)
Asset Turnover Ratio 0.1 0.11 0.12 2.21 2.29 1.78 0.09

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Profitability Ratios
Interest Expended / Interest
68.44 73.09 76.28 75.36 72.16 70.09 65.29
Earned
Other Income / Total
0.92 0.86 0.17 4.06 3.25 5.99 0.02
Income
Operating Expense / Total
29.05 26.22 26 36.34 21.12 21.18 24.81
Income
Balance Sheet Ratios
Capital Adequacy Ratio 19.41 15.53 13.97 7.52 11.5 11.87 19.54
Advances / Loans Funds(%) 58.57 69.86 72.67 55.07 53.42 59.91 64.96
Debt Coverage Ratios
Credit Deposit Ratio 90.04 91.44 84.99 53.26 52.4 53.26 87.81
Investment Deposit Ratio 53.28 46.35 42.68 44.73 39.74 33.93 59.77
Cash Deposit Ratio 10.72 10.14 10.12 5.89 6.59 7.34 11.32
Total Debt to Owners Fund 3.91 4.42 5.27 27.82 23.6 26.15 4.1
Leverage Ratios
Current Ratio 0.14 0.13 0.11 0.02 0.01 0.01 0.11
Quick Ratio 14.7 5.94 6.42 7.5 8.8 9.6 15.86
Cash Flow Indicator Ratios
Dividend Payout Ratio Net
37.31 36.6 33.12 -- 3.2 6.82 35.23
Profit
Dividend Payout Ratio Cash
32.33 31 29.08 -- 2.91 6.22 31.76
Profit
Earning Retention Ratio 61.4 63.23 66.35 -- 96.8 93.16 64.49
Cash Earning Retention
66.7 68.87 70.51 -- 97.09 93.77 68.01
Ratio
Adjusted Cash Flow Times 44.79 49.41 52.34 -- 117.1 109.74 39.77
36.1 33.76 37.37 7.3 8.57 44.73
EPS -6.33
Book Value 463.01 444.9 417.64 33.55 39.88 39.38 478.31

3.5 Analysis of the Financial Results:

 Ratio Analysis
The above table shows the position of ICICI Bank and Bank of Rajasthan Ltd. During pre
and post merger period, ICICI Bank acquired Bank of Rajasthan Ltd., raising the share
value of ICICI Bank to new heights and making the former a stronger bank with a
stronger balance sheet.

When we start comparing the ration of both the banks pre and post merger, one very
important ration which indirectly tells the strength of the companies operation is
21 | P a g e
operating ratio which was 29.05% for ICICI Bank pre merger while it was 36.34% for
Bank of Rajasthan. Post merger the ratio changed to 24.81% indicating a decline. This
clearly indicates that the Company has realized some losses which might be due to the
high costs incurred during the merger period.

Figure 4: Pre and Post Merger Operating Profit Ratio of ICICI Bank

Taking the Net profit ratio for the acquirer company before merger was 12.17% while the
net profit ratio for the acquired company was 10.04%. During post merger the Net Profit
ratio was 15.91% which shows a significant increase from 12.17% to 15.91% and a clear
communication that the company has made profits after merger. It can be suggested that
the company has gained monopoly and the advantages of goodwill are helping the
company gain some substantial profit.

Figure 5: Pre and Post Merger Net Profit Ratio position of ICICI Bank

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The pre-merger ROI for the acquirer company was 44.72% while the return on
investment for the acquired company was 177.48% . Post merger the ROI declined to
42.97%. Also the average of Net worth before merger for the acquiring company was
7.79% while the return on Net worth for the target company was -18.86%. After merger
the return on net worth increased to 9.35% for the acquired company. This indicates that
less was incurred at the time of merger.

Figure 6: Pre and Post Merger ROI position of ICICI Bank

Taking the financial condition of the bank in consideration average EPS during pre
merger for ICICI Bank was 36.1 while that of the target company was -6.33. Post merger
the average EPS increased to 44.73. This might be attributed that the shareholders had
retained some profits or dividends to make the company a stronger financial organization

Figure 7: Pre and Post Merger EPS position of ICICI Bank

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The operating ratio , ROI has indicated a slight decline in their performance. The
company has shown potential in attaining high profits as the main parameter i.e. net profit
ratio, EPS have shown significant increase in their performance.

Further the table shows that dividends payout ratio was 32.33% for the acquirer company
while of the target company it was 2.91%. After Merger pay out ratio changed to 31.76%.
This indicates a slight decrease in the post merger period for the acquirer company from
32.33% to 31.76%.

Figure 8: Pre and Post Merger Dividend Payout Ratio position of ICICI Bank

The average of Debt-Equity ratio before merger for the acquirer company was 3.91 and
that of the target company was 27.82. Post merger the ration had declined to 4.10.

Figure 9: Pre and Post Merger Debt Equity Ratio position of ICICI Bank

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  Synergy:
Nowadays a spate of discussions are going on regarding who will be rewarded due to the
merger deal, what will be the plight of employees and also whether the deal will add
value to the shareholders or not. The value of synergy indicates the additional value
created. Synergy value is created from economies of integrating a target and acquiring a
company, the amount by which the value of the combined firm exceeds the sum value of
the two individual firms. Synergy is determined by following formula-

ΔV= VA-T -(VA +VT)

Where, ΔV = additional value created

VT = the premerger value of the target firm

VA = the premerger value of acquiring firm

VA-T = value of post merger firm

The total assets of Bank of Rajasthan represented 4.0% of total assets of ICICI Bank at
August 12, 2010. At August 12, 2010, Bank of Rajasthan had total assets of ₹155.96
billion, deposits of ₹134.83 billion, loans of ₹65.28 billion and investments of ₹70.96
billion. It incurred a loss of ₹1.02 billion in fiscal 2010. The results for fiscal 2011
include results of Bank of Rajasthan for the period from August 13, 2010 to March 31,
2011. The assets and liabilities of Bank of Rajasthan have been accounted at the values at
which they were appearing in the books of Bank of Rajasthan at August 12, 2010 and
provisions were made for the difference between the book values appearing in the books
of Bank of Rajasthan and the fair value as determined by ICICI Bank. Post merger value
addition for ICICI Bank as follows,

ΔV = VA-T -(VA +VT)

= ₹ 1160.407 billion – (₹ 980.089 billion + ₹ 13.707 billion)

= ₹ 166.611 billion

It is seen that ICICI Bank had incremental net gain from merger with Bank of Rajasthan
Ltd. This means this merger had generated synergy.

25 | P a g e
  Common Size Financial Statement Analysis

Table 4: Common Size Profit and Loss Account of ICICI Bank

Pre-Merger Period Post-Merger Period
Particulars Mar Mar
Mar '08 '09 '10 Mar '11 Mar' 12
Income
Interest Earned 78% 79% 78% 79% 81%
Other Income 22% 21% 22% 21% 19%
Total Income 100% 100% 100% 100% 100%
Expenditure
Interest expended 59% 58% 53% 51% 55%
Employee Cost 5% 5% 6% 9% 8%
Selling and Admin Expenses 15% 15% 18% 11% 7%
Depreciation 1% 2% 2% 2% 1%
Miscellaneous Expenses 9% 10% 8% 12% 13%
Operating Expenses 27% 28% 31% 26% 21%
Provisions & Contingencies 3% 5% 4% 7% 8%
Total Expenses 90% 90% 88% 84% 84%
Net Profit for the Year 10% 10% 12% 16% 16%
Profit brought forward 3% 6% 9% 10% 12%
Total 13% 16% 21% 26% 28%
Appropriations
Transfer to Statutory Reserves 3% 5% 6% 5% 6%
Transfer to Other Reserves 0% 0% 0% 0% 0%
Proposed Dividend/Transfer to
Govt 3% 4% 5% 5% 5%
Balance c/f to Balance Sheet 6% 7% 10% 15% 17%
Total 13% 16% 21% 26% 28%

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During fiscal 2011, ICICI Bank focused on leveraging our rebalanced funding mix and
strong capital position to grow loan portfolio, while substantially reducing our provisions
for loan losses to improve our profitability.

Though after merger the network and branches of ICICI Bank had increased but interest
income did not increase to such extent. This was due to decrease in yield on advance, loss
on securitized pool of assets. The decrease in yield on advances was primarily due to a
decrease in the proportion of the high yielding unsecured retail portfolio in total advances
and decrease in yield on domestic non-retail advances reflecting the declining trend in
interest rates during fiscal 2010 which continued in the first half of fiscal 2011. RBI
increased the CRR by 75 basis points to 5.75% in February 2010 and further by 25 basis
points to 6.00% effective April 24, 2010. As CRR balances do not earn any interest
income, these increases had a negative impact on yield on interest-earning assets in fiscal
2011. On the other hand, income on interest earning investment increased primarily due
to an increase in investment in higher-yielding credit substitutes like corporate bonds and
debentures, certificate of deposits and commercial paper.

During fiscal 2011, the decrease in non-interest income was primarily on account of a
decrease inincome from treasury-related activities. During fiscal 2011, there was an
increase in fee income and income by way of dividends included in lease and other
income. The equity markets remained volatile due to global and domestic developments
including the political unrest in the Middle East and concerns on global recovery due to
possible impact on crude oil prices, and continued high levels of inflation in India and
resultant monetary tightening. These factors impacted market sentiment resulting in
decline inrealised/unrealised profit on equity investments for fiscal 2011 as compared to
fiscal 2010.

Profit after tax increased by 28.0% from ₹40.25 billion in fiscal 2010 to ₹ 51.51
billion in fiscal 2011. The increase in profit after tax was mainly due to a 47.9% decrease
in provisions and contingencies (excluding provisions for tax) from ₹ 43.87 billion in
fiscal 2010 to ₹₹22.87 billion in the fiscal 2011. The decrease in provisions and
contingencies (excluding provisions for tax) was primarily due to a reduction in
provisions for retail non-performing loans, as accretion to retail non-performing loans
declined sharply in fiscal 2011. Net interest income increased by 11.1% from ₹81.14
billion in fiscal 2010 to ₹90.17 billion in fiscal 2011.

The cost of funds i.e. interest expense decreased from 5.8% in fiscal 2010 to 5.4% in
fiscal 2011 primarily due to decrease in cost of deposits, offset, in part by an increase in
cost of borrowings. The decrease in cost of deposits in fiscal 2011 as compared to fiscal

27 | P a g e
2010 was due to the higher proportion of low cost current and savings deposits and
reduction in cost of term deposits. Cost of borrowings increased from 5.6% in fiscal 2010
to 6.1% in fiscal 2011 primarily on account of an increase in cost of call and term
borrowings and bond borrowings.

In fiscal 2011, non-interest expenses increased primarily due to an increase in employee

expenses partly offset by a decrease in other administrative expenses and a decrease in
depreciation on leased assets. Employee expenses increased primarily due to addition of
employees of Bank of Rajasthan, annual increase in salaries and provision for payment of
performance bonus and performance-linked retention pay during the period and increase
in the employee base, including sales executives, employees on fixed term contracts and
interns, from 41,068 employees at March 31, 2010 to 56,969 employees at March 31,
2011 (including employees of Bank of Rajasthan). Rent, taxes and lighting and repairs
and maintenance expenses increased due to an increase in post-merger branch and ATM
network.

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 Table 5: Common Size Balance Sheet of ICICI Bank
Pre-Merger Period Post-Merger Period
Particulars
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12
Capital and
Liabilities:
Total Share
Capital 0.37% 0.39% 0.31% 0.28% 0.24%
Equity Share
Capital 0.28% 0.29% 0.31% 0.28% 0.24%
Preference
Share Capital 0.09% 0.09% 0.00% 0.00% 0.00%
Reserves 11.35% 12.77% 13.90% 13.28% 12.51%
Net Worth 11.71% 13.15% 14.20% 13.56% 12.75%
Deposits 61.14% 57.57% 55.59% 55.54% 53.94%

Borrowings 16.42% 17.75% 25.94% 26.97% 29.59%

Total Debt 77.56% 75.32% 81.53% 82.50% 83.54%
Other Liabilities
& Provisions 10.73% 11.53% 4.27% 3.94% 3.71%
Total
Liabilities 100.00% 100.00% 100.00% 100.00% 100.00%
Assets
Cash &
Balances with
RBI 7.35% 4.62% 7.57% 5.15% 4.32%
Balance with
Banks, Money
at Call 2.17% 3.28% 3.13% 3.25% 3.33%
Advances 56.43% 57.56% 49.86% 53.26% 53.57%
Investments 27.88% 27.17% 33.27% 33.15% 33.69%
Gross Block 1.76% 1.96% 1.96% 2.24% 1.99%
Accumulated
Depreciation 0.73% 0.96% 1.07% 1.07% 1.02%
Fixed Assets 1.03% 1.00% 0.88% 1.17% 0.97%
Other Assets 5.15% 6.37% 5.29% 4.02% 4.12%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%

The total assets increased by 11.8% from ₹ 3,634.00 billion at March 31, 2010 to
₹4,062.34 billion at March 31, 2011 (including ₹155.96 billion of Bank of Rajasthan at
August 12, 2010), primarily due to increase in investments and advances. Investments

29 | P a g e
increased by 11.4% from ₹ 1,208.93 billion at March 31, 2010 to ₹ 1,346.86 billion at
March 31, 2011. The net advances increased by 19.4% from ₹1,812.06 billion at March
31, 2010 to ₹2,163.66 billion at March 31, 2011.

Cash and cash equivalents decreased from ₹388.73 billion at March 31, 2010 to
₹340.90 billion at March 31, 2011. The decrease was primarily due to a decrease in
balances with RBI from ₹241.73 billion at March 31, 2010 to ₹171.23 billion at March
31, 2011 due to higher than stipulated CRR balance maintained at March 31, 2010.

Total investment was in increasing trend during pre-merger periods, however after
merger Total investments increased by 11.4% from ₹ 1,208.93 billion at March 31, 2010
to ₹ 1,346.86 billion at March 31, 2011 including ₹ 70.96 billion of Bank of Rajasthan
at August 12, 2010, primarily due to an increase in investment in corporate bonds and
debentures by ₹ 125.1 1 billion, RIDF and other related investments in lieu of shortfall
in directed lending requirements by ₹ 49.70 billion including ₹ 21.34 billion of Bank of
Rajasthan at August 12, 2010 and investments in commercial paper and certificate of
deposits by ₹ 31.21 billion.

Depreciation on owned property increased by 1.3% from ₹ 4.78 billion in fiscal 2010 to
₹ 4.84 billion in fiscal 2011primarily due to increase in the branch and ATM network
and capitalisation of the Bank‟s new building in Hyderabad, offset, in part, by sale of
assets of merchant acquiring operations and other properties.

The amount of loans and advances was in fluctuating manner during pre-merger period,
but in post-merger periods the percentage of loans and advances was seen stable and in
increasing trend. Net advances increased by 19.4% from ₹ 1,812.06 billion at March 31,
2010 to ₹ 2,163.66 billion at March 31, 2011 primarily due to increase in domestic
corporate loans, overseas corporate loans and loans taken over from Bank of Rajasthan
amounting to ₹ 65.28 billion at August 12, 2010.

During pre-merger periods, the percentage of deposits was in decreasing trend due to
ICICI Bank‟s conscious strategy of reducing wholesale deposits. During fiscal 2010 and
fiscal 2011, ICICI Bank focused on its strategy of increasing the share of current and
savings account deposits in total deposits and re-balancing its funding mix. The current
and savings account deposits increased from ₹ 842.16 billion at March 31, 2010 to ₹
1,016.47 billion at March 31, 2011 including ₹ 46.80 billion of Bank of Rajasthan at
August 12, 2010 and the ratio of current and savings account deposits to total deposits
increased from 41.7% at March 31, 2010 to 45.1% at March 31, 2011.

30 | P a g e
But this increase in deposits was offset by the increase in borrowings. Though the
borrowings was in increasing trend in pre-merger periods, but in post-merger periods the
expansion of new branches and network and operation of banking activities caused to
increase borrowings more than pre-merger periods. Borrowings increased primarily due
to an increase in call and term borrowings and an increase in capital-eligible borrowings
in the nature of sub-ordinated debt.

Equity share capital and reserves increased from ₹ 516.18 billion at March 31, 2010 to
₹ 550.91 billion at March 31, 2011 (including statutory reserve of ₹ 2.00 billion taken
over from Bank of Rajasthan at August 12, 2010) primarily due to allotment of shares to
the shareholders of Bank of Rajasthan and annual accretion to reserves out of profit.
Excess of paid-up value of equity shares issued over the fair value of the net assets
acquired in the amalgamation and amalgamation expenses, amounting to ₹ 2.10 billion
have been adjusted against the securities premium account. But as percentage to total
liabilities total equity shares of post merger period is lower than that of post merger
period, this is because ICICI Bank increased its leverage by raising borrowings.

3.6Merger benefits for ICICI

 Expansion of Branch Network: The main result of this amalgamation is the

geographical expansion in ICICI branch network in the north-western region of
the country, by just diluting 3% of its equity stake. To start new branches would
have been tough for ICICI and for BoR it was a chance to merge itself with India‟s
biggest private sector bank. So, from ICICI‟s point to view, it‟s an expansive
strategy and for BoR it results in improving operations and service quality. So, this
merger has been fruitful to both the acquirer and the target. ICICI bank expanded
its network of branches through acquisition. Addition of 463 branches increased
the number of banks by 25%. ICICI bank‟s position in North and West India is
strengthened.
 ICICI Bank would strengthen its rural marketing drive through 98 branches of
BoR which are in rural area.
 Increase in deposits: deposits of ICICI bank increased due to amalgamation of
BoR. It could have taken 3 to 4 years to increase the deposits to this level. This
saved time and cost of ICICI bank also gave them advantage in terms of time to
market.
 New customers: ICICI bank got new customers through BoR‟s customer base
which is close to 3 million. This would improve revenue of ICICI bank.

31 | P a g e
 Improvement in services of BoR: ICICI banks internet and telephone banking
services are being implemented for BoR and expected to complete by third quarter
of 2011.
 Cross selling: ICICI bank can do cross selling of products and services to
customer base of BoR. This would be new source of revenue for ICICI bank.
 Efficiency improvement: ICICI bank can improve the efficiency of BoR
branches thus improve profitability.

32 | P a g e
CHAPTER 4: Findings and Conclusion

33 | P a g e
4.1 Findings
On the basis of the analytical study of the sample merger case following findings can be
drawn-

 From the shareholders point of view of Profitability the ICICI Bank attained
positive results in the post merger period.
 The merger increased the market value of ICICI Bank which indicates that the
merger had generated synergy.
 The earnings growth after merger was found at much higher rate resulted in value
addition to shareholde₹
 A substantial dividend growth was observed after merger in ICICI Bank.

4.2 Conclusion
Mergers and Acquisitions of banks are one of the major outcomes of the financial
transformation process . Mergers and acquisitions (M&As) are considered as corporate
events which helps an organization to create synergy and provide sustainable competitive
advantage, but, simultaneous these sorts of corporate events have the potential to create
severe personal trauma and stress which can result in psychological, behavioural, health,
performance, and survival problems for both the individuals and companies, whether it is
a bank or a non banking financial corporation, involved in it. It is evident from the case
of ICICI Bank Ltd. that how an organization can become market leader by adopting some
strategic tools like mergers and acquisitions. From the study, one can come to a definitive
conclusion that the primary reason for the merger between ICICI Bank and the Bank of
Rajasthan, a major landmark in Indian Banking history, has occurred due to the
regulatory interventions of the authorities. The analysis showed that the merger has
increased the net profit, value and overall financial performance of the bank which justify
the decision of merger undertaken by ICICI Bank.

34 | P a g e
Bibliography:
http://wiki .answer.com

http://www.moneycontrol.com/financials/bankrajasthan/capital-structure/BR

in.finance.yahoo.com

www.marketobservation.com

www.icicibank.com

http://articles.economictimes.indiatimes.com/2002-07-02/news/27364631_1_icici-bank-
largest-private-sector-bank-branch
http://www.ukessays.com/essays/finance/study-on-icici-and-rajasthan-bank-merger-finance-
essay.php#ftn14#ixzz2fCiZn6kt

ICICI Bank- Bank of Rajasthan Merger: An analysis of strategic Features and Valuation
Sony Kuriakose, *M S Senam Raju and **G S Gireesh Kumar

http://www.business-standard.com/article/finance/bank-of-rajasthan-to-merge-with-icici-
bank-110051900028_1.html

http://www.dnaindia.com/money/1384635/report-bank-of-rajasthan-to-merge-with-icici-
bank

35 | P a g e
Annexure-1

Profit & Loss account of ICICI Bank (in ₹ Cr)

Particulars Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Income
Interest Earned 33,542.65 25,974.05 25,706.93 31,092.55 30,788.34
Other Income 7,908.10 7,108.91 7,292.43 8,117.76 8,878.85
Total Income 41,450.75 33,082.96 32,999.36 39,210.31 39,667.19
Expenditure
Interest expended 22,808.50 16,957.15 17,592.57 22,725.93 23,484.24
Employee Cost 3,515.28 2,816.93 1,925.79 1,971.70 2,078.90

Selling and Admin Expenses 2,888.22 3,785.13 6,056.48 5,977.72 5,834.95

Depreciation 524.53 562.44 619.5 678.6 578.35

Miscellaneous Expenses 5,248.97 3,809.93 2,780.03 4,098.22 3,533.03

Operating Expenses 8,843.63 8,594.16 10,221.99 10,795.14 10,855.18

Provisions & Contingencies 3,333.37 2,380.27 1,159.81 1,931.10 1,170.05

Total Expenses 34,985.50 27,931.58 28,974.37 35,452.17 35,509.47
Net Profit for the Year 6,465.26 5,151.38 4,024.98 3,758.13 4,157.73
Extraordionary Items -0.43 -2.17 -0.09 -0.58 0

Profit brought forward 5,018.18 3,464.38 2,809.65 2,436.32 998.27

Total 11,483.01 8,613.59 6,834.54 6,193.87 5,156.00
Equity Dividend 1,902.04 1,612.58 1,337.86 1,224.58 1,227.70

Corporate Dividend Tax 220.35 202.28 164.04 151.21 149.67

Per share data (annualised)

Earning Per Share (Rs) 56.09 44.73 36.1 33.76 37.37

Equity Dividend (%) 165 140 120 110 110
Book Value (Rs) 524.01 478.31 463.01 444.94 417.64
Appropriations
Transfer to Statutory
Reserves 2,306.07 1,780.29 1,867.22 2,008.42 1,342.31

Transfer to Other Reserves 0.32 0.26 1.04 0.01 0.01

Proposed Dividend/Transfer
to Govt 2,122.39 1,814.86 1,501.90 1,375.79 1,377.37

Balance c/f to Balance Sheet 7,054.23 5,018.18 3,464.38 2,809.65 2,436.32

Total 11,483.01 8,613.59 6,834.54 6,193.87 5,156.01

36 | P a g e
Annexure-2

Balance Sheet of ICICI Bank (in ₹ Cr)

Particulars Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Capital and Liabilities:
Total Share Capital 1,152.77 1,151.82 1,114.89 1,463.29 1,462.68
Equity Share Capital 1,152.77 1,151.82 1,114.89 1,113.29 1,112.68
Share Application
Money 2.39 0.29 0 0 0
Preference Share
Capital 0 0 0 350 350
Reserves 59,250.09 53,938.82 50,503.48 48,419.73 45,357.53
Revaluation Reserves 0 0 0 0 0
Net Worth 60,405.25 55,090.93 51,618.37 49,883.02 46,820.21
Deposits 255,499.96 225,602.11 202,016.60 218,347.82 244,431.05
Borrowings 140,164.91 109,554.28 94,263.57 67,323.69 65,648.43
Total Debt 395,664.87 335,156.39 296,280.17 285,671.51 310,079.48
Other Liabilities &
Provisions 17,576.98 15,986.35 15,501.18 43,746.43 42,895.39
Total Liabilities 473,647.10 406,233.67 363,399.72 379,300.96 399,795.08

Assets
Cash & Balances with
RBI 20,461.29 20,906.97 27,514.29 17,536.33 29,377.53
Balance with Banks,
Money at Call 15,768.02 13,183.11 11,359.40 12,430.23 8,663.60
Advances 253,727.66 216,365.90 181,205.60 218,310.85 225,616.08
Investments 159,560.04 134,685.96 120,892.80 103,058.31 111,454.34
Gross Block 9,424.39 9,107.47 7,114.12 7,443.71 7,036.00
Accumulated
Depreciation 4,809.70 4,363.21 3,901.43 3,642.09 2,927.11
Net Block 4,614.69 4,744.26 3,212.69 3,801.62 4,108.89
Capital Work In
Progress 0 0 0 0 0
Other Assets 19,515.39 16,347.47 19,214.93 24,163.62 20,574.63
Total Assets 473,647.09 406,233.67 363,399.71 379,300.96 399,795.07

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