A Project Report On

Project Guide
Prof. Shanti
Date of Submission
12th September 2007

Prepared by
Group of T.Y.B.Com (Banking & Insurance)

Name of the Roll No

students.
Rahul Bafna 02

Pankaj Daga 06

Amit Dhawle 08

Chirag Gogri 16
Profile
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. ICICI Bank
was originally promoted in 1994 by financial institution named ICICI
Limited, and was its wholly-owned subsidiary.

In 1999, 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
both entities. Bank would be the optimal strategic alternative for both
entities.

After the merger it was called as ICICI Bank which is now the
countries largest private sector Bank. It is first universal bank and the India's
second-largest bank with total assets of Rs. 3,446.58 billion having profit of
Rs. 31.10 billion by end of march 2007.

The Bank has a network of about 950 branches and 3,300 ATMs in
India and presence in 17 countries. ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers
through a variety of delivery channels. The Bank currently has its
subsidiaries across the world along with its branches.
ICICI Bank's equity shares are listed in India on Bombay Stock
Exchange and the National Stock Exchange of India Limited and its
American Depositary Receipts are listed on the New York Stock Exchange.
Board of Directors
 Mr. N. Vaghul, Chairman
 Mr. Sridar Iyengar
 Mr. Lakshmi N. Mittal
 Mr. Narendra Murkumbi
 Mr. Anupam Puri
 Mr. Vinod Rai
 Mr. M.K. Sharma
 Mr. P.M. Sinha
 Prof. Marti G. Subrahmanyam
 Mr. T.S. Vijayan
 Mr. V. Prem Watsa
 Mr. K.V. Kamath, Managing Director & CEO
 Ms. Chanda Kochhar, Deputy Managing Director
 Dr. Nachiket Mor, Deputy Managing Director
 Ms. Madhabi Puri-Buch, Executive Director
 Mr. V. Vaidyanathan, Executive Director
Auditors Report (BSR &Co. Chartered Accountants)
Auditors have audited the balance sheet as well as profit and loss
account as on 31st march 2007 for the accounting year 2006-07. These
financial statements are the responsibility of the banks management. And the
auditors’ responsibility is to only express opinions on these financial
statements based on the audits carried out by the auditors.
An audit includes evaluation of overall financial statement
presentations. The balance sheet has been showed in form A where as profit
and loss account is been showed in form B of 6th schedule of the Banking
Regulation Act 1949.
They report that
 The audit conducted by them was as per the accounting standards.
Those standards require proper planning and perform the audit with
assurance that the financial statements are free from mis statements
 Balance sheet read by them was with significant accounting policies,

notes forming part of accounts is a full and fair balance sheet

containing necessary particulars, and is drawn with true and fair view
of the affairs of bank as at 31st march 2007.
 Profit and loss account, cash flow statement read by them was with
significant accounting policies, notes forming part of accounts shows
a true and fair balance of profit for the year.
 All the information obtained and explained were to the best of their
knowledge and the belief and the purpose of the audit has been
satisfactory.
  All the transactions of the bank which the auditors saw were within
the powers of the bank.
 The returns received from the offices and branches of the bank have
been found adequate for the purpose of our audit.
 They say that proper books of accounts as required by law have been
kept by the Bank as far as appears from their examination.
 On the basis of written representations received from the directors,
and taken on record by the Board of Directors, they reported that none
of the directors was disqualified from being appointed as a director.

Financial Statements
ICICI Bank Ltd.
Balance Sheet (as on 31 March, 2007) (Rs in 000s)
Particulars Current year Previous year
Capital & liabilities:
Capital 12493437 12398345
Reserves and Surplus 234139207 213161571
Deposits 2305101863 1650831713
Borrowings 512560263 385219136
Other Liabilities and Provisions 382286356 252278777
TOTAL 3446581126 2513889542
Assets:
Cash and balances with 187068794 89343737
Reserve Bank of India
Balances with Banks and 184144452 81058508
Money at Call and Short notice
Investments 912578418 715473944
Advances 1958655996 1461631089
Fixed Assets 39234232 39807115
Other Assets 164899234 126575149
 TOTAL 3446581126 2513889542
Contingent Liabilities 5629599060 3950336655
Bills for Collection 40465610 43384648

Capital & Liabilities

 The share capital of the bank has minimal increase from previous
year i.e. from Rs 12398345 lacs to Rs 12493437 lacs.
 The reserves and surplus increased from Rs 213161571 lacs to
Rs 234139207 lacs which makes an increase of 9 % from previous
year.
 The deposits increased from Rs 1650831713 lacs to
Rs 2305101863 lacs which makes an increase of 40 % from
previous year.
 The borrowings have also increased from Rs 385219136 lacs to
Rs 512560263 lacs which makes an increase of 33 % from previous
year
 Other liabilities and the provisions of the company increased from
Rs 252278777 lacs to Rs 382286356 lacs which makes an
increase of 52 % from previous year
 There fore by clubbing all the above capitals and the liabilities we
can see that the bank’s capital and the liabilities has been increased
from Rs 2513889542 lacs to Rs 3446581126 lacs which makes
an total increase of 37 % from previous year

Assets
 The cash and the balance with the RBI has been increased from
Rs 89343737 lacs to Rs 187068794 lacs which makes an increase
of 109 % from previous year
 The balance of the bank with other banks and the money at call and
the short notice has also raised up from Rs 81058508 lacs to
 Rs 184144452 lacs which makes an increase of 127 % from
previous year
 The bank also has investments which has increased from
Rs 715473944 lacs to Rs 912578418 lacs which makes an
increase of 28 % from previous year
 The advanced granted by the bank has raised from Rs 1461631089
lacs to Rs 1958655996 lacs which makes an increase of 34% from
previous year
 The bank has decreased its fixed assets which were of Rs 39807115
lacs to Rs 39234232 lacs which makes an decrease of 1 % from
previous year
 The other assets of the bank has just increased from Rs 126575149
lacs to Rs 164899234 lacs which makes an increase of 30 % from
previous year
 There fore by clubbing all the above Assets we can see that the bank’s
assets has been increased from Rs 2513889542 lacs to
Rs 3446581126 lacs which makes an total increase of 37 % from
previous year

Contingent liabilities
The contingent liabilities of the banks has increased from Rs
3950336655 to Rs 5629599060 which makes an total increase of
43 % from previous year

Bills for collection

The banks do have bills for collections which has decreased from
Rs 43384648 lacs to Rs 40465610 lacs which makes an overall
decrease of 7 % from previous year

ICICI Bank Ltd

Profit & Loss a/c (as on 31st March, 2007) (Rs in 000s)
Particulars Current Year Previous year
I. INCOME
Interest earned 229942916 143061325
Other income 59291686 41808859
TOTAL 289234602 184870184
II. EXPENDITURE
Interest expended 163584984 95974483
Operating expenses 66905564 50011537
Provisions and contingencies 27641854 13483417
TOTAL 258132402 159469437
III. PROFIT
Net Profit for the year 3110220 25400747
Profit brought forward 2934416 1882221
TOTAL 34036616 27282968

IV. APPROPRIATIONS
Transfer to Statutory Reserve 7800000 6360000
Transfer to General Reserve 1168 222
Transfer to Capital Reserve 1210000 680000
Transfer to Investment Reserve nil 590000
Transfer to Special Reserve 4500000 2750000
Transfers to revenue & others nil 13203350
Proposed Dividend 9011729 7593361
Corporate Dividend tax 1530978 1064969
Balance carried over to Balance 9982741 2934416
Sheet
TOTAL 34036616 27282968
Incomes
The incomes earned by the bank of India have increased from
Rs 184870184 lacs to Rs 289234602 lacs which makes an increase of
income almost by 50 % from previous year.
Expenditure
As there is an increase in incomes, the expenses are also increased from
Rs 159469437 lacs to Rs 258132402 lacs which make an increase of 54 %
from previous year
Appropriations
The appropriations also has increased from Rs 27282968 lacs to
Rs 34036616 lacs which makes an increase of 33 % from previous year

Corporate Governance
Clause 49 of Listing Agreement requires the listed companies; banks must
comply with certain conditions of corporate governance: such conditions are
as follows:
 Board of Directors consisted 17 members amongst which 12 were
independent directors where as other 5 members was full time
directors.
 The Bank also disclosed the financial relationship of the non-
executive directors within the annual report.
  Remunerations, salaries, bonus, service contracts, etc of the non-
executive directors which was decided by the Board was also
disclosed in corporate section of annual report.
 Board meeting was held 8 times a year including 3 meetings of short
notice and none of the director is member of committee for exceeding
10 Bank’s or can who is acting as an chairman of not more than 5
Bank’s. The director went through minute books of board as well as
annual intimation filed by each of the directors.
 Management Discussion & Analysis Report including overall out look
of the Bank, structure and development of banking industry,
performance, opportunities, risks and threats of the Bank, all matters
in relation to banks and their transactions also formed part of the
annual report.
 Bank also appointed 2 new directors, so the details related to their
resumes, past experiences were provided by bank. Bank also
presented information on the Bank’s website. Bank had an set up a
committee in name of investors or shareholders, in which non-
executive director looked out the complaints queries by solving or
answering their queries.
 Bank has stated that they have established a tradition of best practices
in corporate governance; in separate section of corporate governance,
also telling that they have fulfilled all the conditions required for
fulfillment of terms and conditions within annual report.
Audit committee:
The committee provides direction to the audit function, monitors the quality
of internal and statutory audit. The audit committee comprised of 3
independent directors along with the chairman of the bank. 6 meetings were
held during the year.
Responsibilities of audit committee are;
 To lookout the financial reporting process in order to ensure fairness,
review the financial statements before submitting
 To recommend on appointment or removal or auditors, and fixing
their remunerations.
 To review adequacy of internal control systems, internal and external

audits, along with their functions, findings of internal investigations

and examine such findings with regards to frauds.
 To look out the reasons for defaults in payments by depositors, share
or debenture holder of the bank, or why the creditors are not yet been
paid.
 To discuss on scope and nature of audit with the external auditors.
 To look whether the audit committee has been setup as per the
provisions required by law, and must see that all conditions of the
listing agreement has been fulfilled or not.
Conclusion
We would like to conclude by discussing the experience while
preparing the project on annual report of the Bank.
While compiling this project, it was a great challenge since it gave us
a chance to interact with annual report of highly image of the bank which
has professional approach towards their work.
ICICI Bank-a name itself reflects clear and fair picture of its business.
Due to efficient performance and faithful transactions, ICICI Bank is able to
become largest private sector bank and also first universal bank of India.
 It has shown high growth in incomes, as result of developing business
and professional outlook. As a history of ICICI bank reflects that efficient
management, wide range of services, careful attention towards customer is
responsible for proving sentence; “HUM HAI NA”
As Banking sector is amongst growing rapidly in India. Being a
complex concept it is essential to understand their operations and workings.
During our project work we got in depth knowledge of various financial
aspects conducted by the ICICI bank.
Now a days in the globalize and highly competitive market, there is a
healthy competition in banking sector; where by the banking sector will get
broader and deeper as time passes away.
The banks will have to compete for brand value and image in the
banking sector. We can also say that survival will become a matter of
”life and death” for bank, rather than thinking to earn profit.