PROJECT REPORT

(Submitted for the degree of B.Com. Honours under the

University of Calcutta)

“Financial Statements Analysis: A Comparative Study on ICICI and HDFC Bank”

SUBMITTED BY

Name : Varun Kothari

Registration : 017-1111-3514-18

Name of the College : The Bhawanipur Education Society College.

Roll No. : 181017-21-1791

SUPERVISED BY

Name of the Supervisor: Prof. Chandan Jha

Name of the College : The Bhawanipur Education Society College

MONTH &YEAR OF SUBMISSION:

- June,2021
Annexure 1 (A)

SUPERVISOR’S CERTIFICATE

This is to certify that “Mr. Varun Kothari” student of B.Com Honours of

“The Bhawanipur Education society college” under The University Of Calcutta has worked
under my supervision and guidance for his project work and prepared a project report on
“Financial Statement Analysis: A Comparative Study on ICICI and HDFC Bank”

The project report, which he is submitting, is his genuine and original work to the best of
my knowledge.

Signature :

Name : Prof. Chandan Jha

Designation : (Research Guide) Department of Commerce.

Name of the college: The Bhawanipur Education Society College

Place: Kolkata

Date:

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Annexure 1 (B)

STUDENT’S CERTIFICATE

I hereby declare that the project work with the “Financial Statement Analysis: A
Comparative Study on ICICI and HDFC Bank” submitted by me for the partial
fulfilment of the degree of B.Com. Honours under the University Of Calcutta is original
work and has not been submitted earlier to any other University for the fulfilment of the
requirement for any Course of study.

I also declare that no chapter of this manuscript in whole in part has been incorporated in
this report from any earlier work done by others or by me. However, extracts of any
literature which has been used for this report has been duly acknowledged providing details
of such literature in the references.

Signature:

Name : Varun Kothari

Address : 125/1, Canal Street, Akash Apartment, Pin-700048, Kolkata, West Bengal.

Registration No: 017-1111-3514-18

Place: KOLKATA

Date:

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 ACKNOWLEDGEMENT

I express my thanks to the principal of our college for providing excellent infrastructure
for completion of this project work in our esteemed organization “The Bhawanipur
Education Society College”.

My sincere thanks to “ Prof. Chandan Jha” who have provided support directly and
indirectly for completion of my project.

I am also thankful to people who have extended support who gave me the needed
information for drawing up the research and analysis of the situation, and for their open
hearted co-operation.

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 SYNOPSIS

Finance is a life blood of business it is required from the establishment of the business to liquidity or
winding up of a business, so financial institutions played a very important role on the operation of the
business. Ratio analysis is one of the powerful techniques which is widely used for interpreting financial
statements and to assess the financial soundness of the business. The idea of ratio analysis was introduced
by Alexder Wall for the first time in 1919. Ratios are quantitative relationship between two or more
variables taken from financial statements. Ratio Analysis is defined as “The systematic use of ratios to
interpret the financial statement so that the strength and weakness of the firm as well as its historical
performance and current financial condition can be determined.” As a tool of financial management, ratios
are of crucial significance. The importance of the ratio analysis lies in the fact that it presents facts on
comparative basis and enables the drawing of inference regarding the performance and make comparative
study. Analysis and interpretation of financial statement has now become an important technique of credit
appraisal.

In this report I made an effort to analyse and compare the financial position of the HDFC and ICICI Bank.
My topic is “Financial Statement Analysis: A Comparative study on ICICI & HDFC Bank” which means
that a process to identify the financial performance of the firms by properly establishing the relationship
between the items of balance sheet and profit or loss account and making a comparative study of its
profitability. The present study is aimed to examine the following objectives:

● To analyze and compare the Financial Performance of HDFC and ICICI Bank.
● To make a comparative study of the profitability ratios of HDFC & ICICI Bank.
● To graphically represent the ratios and its change during the selected period of study.
● To offer suggestions for the improvement of efficiency in HDFC and ICICI Bank.

The study is based on secondary data and has been collected from the financial statements of Housing
Development Financial Corporation (HDFC) and Industrial Credit Investment Corporation of India (ICICI)
Bank. The published annual reports of the selected banks taken from websites, magazines and journal on
finance have also been used as a source of data. The study covers a period of five financial years from 2017
till 2021. The major limitation of the present study is that the analysis is restricted to one particular sector
such as Banking. It is confined to only measure the financial performance of selected banks. The inherent
limitation of secondary data – the published data is not uniform and not properly disclosed by the banks.

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 Contents

Serial. Page
No. Topics No.
1. Chapter-1 Introduction
● 1.1 Introduction of Ratio Analysis 1-8
● 1.2 Literature Review 9-10
● 1.3 Objectives 11
● 1.4 Research Methodology 12
● 1.5 Limitation of the Study 12
● 1.6 Chapter Planning 12
2. Chapter-2 Conceptual Framework
● 2.1 Ratio Analysis 13
● 2.2 Types of Ratio Analysis 14
● 2.3 Importance of Ratio Analysis 14-15
1 ● 2.3 Advantages of Ratio Analysis 15-16
● 2.4 Disadvantages of Ratio Analysis 17-18
3. Chapter-3 Analysis and Findings:
● 3.1 Objective 19-21
● 3.2 Methodology 22-24
● 3.3 Comparative Analysis 25-32
● 3.4 Findings 33-35
4. Chapter-4 Conclusions and Recommendations:
● 4.1 Conclusion 36
● 4.2 Suggestion and Recommendation 37-43
Bibliography:
Annexure:

● Annexure A- ICICI Bank

● Ai- Balance Sheet for 5 years (2015-19)

● Aii- Profit & Loss Account for 5 years (2015-19)

● Annexure B- HDFC Bank

● Bi- Balance Sheet for 5 years (2015-19)

● Bii- Profit & Loss Account for 5 years (2015-19)

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 Chapter- I: Introduction
1.1- Background of Ratio Analysis:

Finance is a life blood of business it is required from the establishment of the business to liquidity or winding
up of a business, so financial institutions played a very important role on the operation of the business.

When we observed the financial statement comprising the balance sheet and profit or loss account is that
they do not give all the information related to financial operations of firm, they can provide some extremely
useful information to the extent that the balance sheet shows the financial position on a particular date in
terms of structure of assets, liabilities and owner’s equity and profit or loss account shows the results of
operation during the year. Thus the financial statements will provide a summarized view of the firm.
Therefore in order to learn about the firm the careful examination of an valuable reports and statements
through financial analysis or ratio is required.

Ratio analysis is one of the powerful techniques which are widely used for interpreting financial statements.
This technique serves as a tool for assessing the financial soundness of the business. it can be used to compare
the risk and return relationship of firms of different sizes. The term ratio refers to the numerical or quantitative
relationship between two items/ variables.

The idea of ratio analysis was introduced by Alexander Wall for the first time in 1919. Ratios are quantitative
relationship between two or more variables taken from financial statements.

Ratio analysis is defined as, “the systemic use of ratio to interpret the financial statement so that the strength
and weakness of the firm a well as its historical performance and current financial condition can be
determined.

Ratio analysis is used to evaluate relationships among financial statement items. The ratios are used to
identify trends over time for one organisation or to compare two or more organisations at one point of time.
Ratio analysis focuses on three key aspects of a business : liquidity, profitability, and solvency.

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Basis of comparison

Ratios are relative figures reflecting the relationship between variables. They enable analysts to draw
conclusions regarding financial operations. The use of the ratios, as a tool of financial analysis involves their
comparison, for a single ratio like absolute figures, fails to reveal the true position. For example, if in the
case of a firm, the return on capital employed is 15 percent in a particular year, what does it indicate? Only
if the figure is related to the fact that in the preceding year the relevant return was 12 per cent or 18 percent,
it can be inferred whether the profitability of the firm has declined or improved. Alternatively, if we know
that the return for the industry as a whole is 10 percent or 20 percent, the profitability of the firm in question
can be evaluated. Comparison with related facts is, therefore, the basis of ratio analysis. Four types of
comparison are involved

i. Trend ratio
Trend ratios involve a comparison of the ratios of a firm over time, that is, present ratios are compared
with the past ratio of the same firm. This kind of ratio particularly applicable to the items of profit and
loss account. It is advisable that trends of the sales and the net income may be studied in the light of
two factors: the rate of fixed expansion or secular trend in the growth of the business and the general
price level. it might be found in practice that a number of firms would show a persistent growth over
the period of the years.

ii. Intra firm comparison

Intra firm comparison involving comparison of the ratio of the firm with those of the others in the
same line of business or for the industry as a whole reflects its performance in relation to its
competitors.

iii. Comparison of items within a single year’s financial statement of a firm

iv. Comparison with standard or plans.

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 Fig.- Interconnectivity of Ratios.

1.2- LITERATURE REVIEW

1. According to the free dictionary online- Profitability Ratio (http://financial-

dictionary.thefreedictionary.com/Profitability+ratios)

Any ratio that measures a company's ability to generate cash flow relative to some metric, often the amount
invested in the company. Profitability ratios are useful in fundamental analysis which investigates the
financial health of companies. An example of a profitability ratio is the return on investment which is the
amount of revenue an investment generates as a percentage of the amount of capital invested over a given
period of time. Other examples include return on sales, return on equity, and return on common stock
equity.

2. According to website about Accounting for managers (http://ebooks.narotama.ac.id/files/ratios)-

Analysis means methodical classification of data and presentation in a simplified form for easy
understanding. Interpretation means assigning reasons for the behaviour in respect of the data, presented in
the simplified form. Analysis of ratios, without interpretation, is meaningless and interpretation, without
analysis, is impossible. What is important and necessary is consistent approach. The same formulae and
similar treatment have to be used for all the years of comparison. Equally, the approach should be uniform
for all the firms for which comparison is made. Otherwise, distorted results would emerge and the
interpretation based on the results would be meaningless. Profitability ratios are to measure the operating
efficiency of the company. Besides management, lenders and owners of the company are interested in the
analysis of the profitability of the firm.

3. The Institute Of Companies Secretary Of India- Cost and Management Accounting-Analysis and
Interpretation of Financial Statements

Ratio are the symptoms like blood pressure, the pulse or the temperature of an individual. Just as in the
case of an individual, a doctor or a valid person by reading the pulse of a patient or by studying the blood
pressure or the temperature of a patient can diagnose the cause of his ailment, so also a financial analyst
through ratio analysis of the employment of resources and its overall financial position. Just as in medical
science the symptoms are passive factors, to diagnose them properly depends upon the efficiency and the
expertise of the doctor, so also to derive right conclusions from ratio analysis will depend upon the
efficiency and the depth of understanding of the financial analyst.

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4. Anthony R.N., Analysis of Financial statements expressed ratio as-

“A ratio is simply one number expressed in terms of another. It is found by dividing one number into
another”

5. Goel D.K., Analysis of Financial statements, Arya Publications, Tenth edition2012-

Profit is the overall objective of a business enterprise, this ratio is a barometer of the overall performance
of the enterprise. It measures how efficiently the capital employed in the business is being used. In other
word, it is also a measure of the earning power of the net assets of the business. Even the performance of
two dissimilar firms can be compared with the help of these profit ratios.

Furthermore, the ratio can be used to judge the borrowing policy of the enterprise. If an enterprise having
the ratio of return of investment of 15%, borrows at 26%, it would indicate that it is borrowing at a rate
higher than its earning rate.

6. Faulke, Financial accounting expressed his view on comparative analysis-

Comparative analysis is the study of trend of the same items and computed for two or more financial
statements of the same business enterprise on different dates.

In case of inter-firm comparison financial statements of two or more firms are compared, whereas in case
of intra-firm comparison financial statements of two or more years are compared.

7. Basu & Dutta, Comprehensive financial accounting, first edition 2003-04-

Gross profit ratio = gross profit / net sales *100

Gross profit ratio reveals profit earning capacity of the business with reference to its sale. The gross profit
ratio also works as a guide to the management in determining its selling and distribution expenses. There is
no ideal standard measure for it but it should be sufficient to cover the selling expenses of the firm.

Net profit ratio = net profit / net sales *100

Net profit ratio shows the operational efficiency of the business. Decrease in the ratio sows managerial
inefficiency and excessive selling and distribution expenses. In the same way, increase shows better
performance. Increase or decrease in the ratio is determine d in comparison to previous year’s performance.

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1.3- OBJECTIVES

The traditional financial statements that comprise of the balance sheet and profit and loss account do not
give enough information related to financial operations of the company. These financial statements
prepared as per the statutory requirement of law need to be analysed in order to evaluate the past
performance of the company and the future prospects.

There are many tools of financial statement analysis like:

1. Ratio Analysis
2. Dupont Analysis
3. Trend Analysis
4. Commonsize statements
5. Comparative Analysis

The most widely used tool is Ratio Analysis.

● It is the most widely used tool since it compares risk and return relationships of firms from various
aspects. Ratio analysis is the method or process by which the relationship of items or group of items in the
financial statements are computed, determined and presented.
It is an attempt to derive quantitative measures or guides concerning the financial health and profitability
of a business enterprise. It can be used both in trend and static analysis. There are several ratios at the
disposal of an analyst but the group of ratios he would prefer depends on the purpose and objectives of
analysis.
● Accounting ratios are very useful in assessing the financial position and profitability of a business
enterprise. This can be achieved through comparison by ratios in the following ways:

• For same enterprise over a no. of years(horizontal analysis)

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• For one enterprise against another in the same industry(third-dimension analysis)

• For one enterprise against the industry as a whole

• For one enterprise against the pre determined standards

• For inter departmental comparisons within an organization.

1.4 RESEARCH METHODOLOGY

● The data required for the study has been collected from secondary source.
● The project was completed within a frame of six months.
● The relevant information was taken from annual reports, journals and internet relating to the
selected banks.

1.5 Chapter Planning

● Conceptual Framework.
● Analysis of Findings.
● Conclusion and Recommendations.

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 Chapter- II: Conceptual Framework of Ratio
Analysis

2.1- Ratio analysis

The Definition

Ratio analysis is an important and powerful technique or method, generally, used for analysis of Financial
Statements. Ratios are used as a yardstick for evaluating the financial condition and performance of a firm.
Analysis and interpretation of various accounting ratios gives a better understanding of financial condition
and performance of the firm in a better manner than the perusal of financial statements.

Concept.
A ratio or financial ratio is a relationship between two accounting figures, expressed mathematically.
Ratio Analysis helps to ascertain the financial condition of the firm. In financial analysis, a ratio is
compared against a benchmark for evaluating the financial position and performance of a firm. Financial
ratios help to summarise large quantities of financial data to make qualitative judgment about the firm’s
financial performance.
Scope: With a single financial ratio, no conclusion is to be arrived at. The ratios are to be studied in
relation to each other, in comparison of the past ratios of the firm as well as ratios of the industry, better
with its immediate competitors to understand their relative significance and impact. Ratios are the
symptoms of health of an organisation like blood pressure, pulse or temperature of an individual. Ratios
are the indicators for further investigation.
A single ratio is not meaningful. For proper interpretation and understanding, ratios are to be compared.
Comparison can be with
● Past ratios i.e. ratios from previous years’ financial statements of the same firm.
● Competitors’ ratios i.e. similar ratios of the nearest successful competitors.
● Industry ratios i.e. ratios of the industry to which the firm belongs to.
● Projected ratios i.e. ratios developed by the firm which were prepared, earlier, and projected to
achieve.

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2.2 Types of Ratios

Several ratios can be grouped into various classes, according to the activity or function they perform. We
have, already, discussed in the previous chapter that there are several groups of persons — creditors,
investors, lenders, management and public — interested in interpretation of the financial statements. Each
group identifies those ratios, relevant to its requirements. They wish to interpret ratios, for those purposes
they are interested in, to take appropriate decisions to serve their own individual interests. In view of the
diverse requirements of the various users of the ratios, the ratios can be classified into four categories:
Performance of a company is evaluated using the ratio analysis in the following different directions.
Profitability (Profitability Ratios)
Efficiency of Assets (Activity Ratios)
Short-term Solvency (Liquidity Ratios)
Long-term Solvency (Leverage Ratios)
Evaluation — Performance of Company in the Context of Ratio Analysis
A. Liquidity Ratios: They measure the firm’s ability to meet current obligations.
B. Leverage Ratios: These ratios show the proportion of debt and equity in financing the firm’s assets.
C. Activity Ratios: They reflect the firm’s efficiency in utilising the assets.
D. Profitability Ratios: These ratios measure overall performance and effectiveness of the firm.

2.3. Importance of Ratio Analysis

As a tool of financial management, ratios are of crucial significance. The importance of the ratio analysis
lies in the fact that it presents facts on a comparative basis and enables the drawing of inference regarding
the performance of a firm. Ratio analysis is relevant in assessing the performance of a firm in respect of the
following aspects

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1. Liquidity position
With the help of ratio analysis conclusion can be drawn regarding the liquidity position of the firm. The
liquidity position of the firm would be satisfactory if it is able to meet its current obligation when they
become due. a firm can be said to have the ability to meet its short term liabilities if it has sufficient
liquidity funds to pay the interest on its short maturing debts usually within a year as well as to repay
the principal.

2. Long term solvency

Ratio analysis is equally useful for assessing the long term viability of a firm. This aspect of the
financial position of a borrower is of concern to long term creditor, security analysts and the present
and potential owners of a business. The long term solvency is measured by the leverage/ capital
structure profitability ratio which focus on earning power and operating efficiency. Ratio analysis
reveals the strength and weakness of the firm in this respect.

3. Operating efficiency
Yet another dimension of the usefulness of the ratio analysis, relevant from the view point of the
management, is that it throws light on the degree of the efficiency in the management and utilization of
its assets. The various activity ratios measure this kind of operational efficiency. In fact, the solvency of
a firm is, in the ultimate analysis, dependent upon the sales generated by the use of its assets-total as
well as its components.

4. Overall profitability
Unlike the outside parties which are interested in one aspect of the financial position of a firm, the
management is constantly concerned about the overall profitability of the enterprise. That is, they are
concerned about the ability of the firm to meet its short term as well as long term obligations to its
creditors, to ensure a reasonable return to its owners and secure optimum utilization of the assets of the
firm. This is possible if an integrated view is taken and all the ratios are considered together.

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 5. Inter-firm comparison
Ratio analysis not only throws the light on the financial position of a firm but also serves as a stepping
stone to remedial measures. This is made possible due to interfirm comparison and comparison with the
averages. A single figure of a particular ratio is meaningless unless it is related to some standard or
norm. One of the popular techniques to compare the ratio of the firm with the industry average. It
should be reasonably expected that the performance of a firm should be in broad conformity with that
of the industry to which it belongs. An interfirm comparison would demonstrate the firm’s position vis-
à-vis its competitors.

6. Trend analysis
Finally, ratio analysis enables a firm to take the time dimension into account. In other words, whether
the financial position of a firm is improving or deteriorating over the years. This is made possible by
the use of the trend analysis. The significance of a trend analysis of the ratio lies in the fact that the
analyst can know the direction of movement, that is, whether the movement is favourable or
unfavourable.

2.4 Advantages of Ratio Analysis

❖ Simplifies financial statements: Ratio Analysis simplifies the comprehension of financial

statements. Ratios tell the story of changes in financial condition of the business.

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 ❖ Facilitates inter firm comparison: Ratio analysis provides data for inter company comparison.
Ratio highlights the association with successful and unsuccessful firms. They also reveal strong
and weak companies, overvalued and undervalued company’s.

❖ Makes intra firm comparison possible: Ratio analysis also makes possible comparison of the
performance of different division of the company. The ratio helpful in deciding about their
efficiency.

❖ Helps in planning: Ratio Analysis helps in planning and forecasting over period of time a
company develops certain norms that may indicates future success/ failure. If relationship changes
in firms data over different time periods. The ratio may provide clues on trends and future
problems.

❖ Liquidity position: With the help of ratio analysis conclusions can be drawn regarding liquidity
position of the company. The liquidity position of a company could be satisfactory if it is able to
meet its current obligations when they become due.

❖ Long term solvency: Ratio analysis equally useful for assessing the long-term financial viability
of a firm. The long-term solvency is measured by the leverage / capital structure and profitability
ratios, which focus on earning power and operating efficiency.

2.5 Disadvantages of Ratio Analysis

Ratio analysis is a widely used tool of financial analysis. Yet, it suffers from various limitations. The
operational implication of this is that while using ratios, the conclusion should not been taken on their face
value. Some of the limitation which characterize ratio analysis are
❖ Difficulty in comparison

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One serious limitation of ratio analysis arises out of the difficulty associated with their comparability.
One technique that is employed is interfirm comparison. But such comparisons are vitiated by different
procedures adopted by various firms. The difference may relate to
● Difference in the basis of inventory valuation
● Different depreciation methods (i.e. straight line vs. written down basis)
● Estimated working life of the assets, particularly of plant and equipment
● Amortization of intangible assets like goodwill, patents and so on.
● Amortization of deferred revenue expenditure such as preliminary expenditure and discount
on issue of shares
● Treatment of extraordinary items of income and expenditure and so on

❖ Impact of inflation
The second major limitation of the ratio analysis as a tool of financial analysis is associated with price
level changes. This, in fact is a weakness of the traditional financial statement which are based on
historical cost. An implication of this feature of the financial statement as regards ratio analysis is that
assets acquired at different periods are, in effect, shown at different prices in the balance sheet, as they
are not adjusted for changes in the price level. As a result, ratio analysis will not yield strictly
comparable and therefore, dependable results.
❖ Conceptual Diversity
Yet another factor which affects the usefulness of ratios is that there is difference of opinion regarding
the various concepts used to compute the ratios. There is scope for diversity of opinion as to what
constitutes shareholders’ equity, debt, asset, profit and so on. Different firms may use these terms in
different senses or the same firm may use them to mean different things at different times. Reliance on
a single ratio for a particular purpose may not be a conclusive indicator. For instance, the current ratio
alone is not a adequate measure of short-term financial strength; it should be supplemented by the acid
test ratio, debtors turnover ratio and inventory and inventory turnover ratio to have a real insight into
the liquidity aspect.

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2.6 – Company Profile
2.6.1- ICICI BANK

The Bank was Incorporated on 5th January, 1994 at Baroda. ICICI Bank was promoted by ICICI and
erstwhile SCICI Ltd. and received the Certificate for Commencement of Business on 24th February. It
does banking business of all kinds. It was founded as an institution to provide quality banking services
using state-of-the-art technology.

The Bank has established a well diversified branch network with 24 branches in 15 centers covering 12
states. The bank set up a fully computerized environment with the State-of-the-art technology at all offices
continuously upgrading its strong systems and procedures with special emphasis on risk management.
ICICI Bank, which introduced Internet banking in India, in 1998 was set to launch various technology-
based new services in the near future. ICICI Banking Corporation Ltd, the first bank in the country to go in
for Internet banking, is now all set to provide its account-holders with the facility of transferring funds
across their accounts on the Net.

In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its 5-
million American depository shares issue generating a demand book 13 times its size at .2 billion. The
Bank proposes to bring credit cards to the large, underserved population in rural and semi-urban areas.

The ICICI has announced the launch of mobile banking services for its customers, using the wireless
application protocol (WAP) technology. Ford India has tied up with ICICI Bank to introduce a scheme,
enabling non-resident Indians (NRIs) to purchase a Ford Ikon car for their friends and relatives in India.
ICICI Bank has set up a ATM facility at a Indian Oil Corporation petro diesel outlet at Chennai.
Change of name
Our name was changed from ICICI Banking Corporation Limited to ICICI Bank Limited on September
10, 1999. The change of name was effected on account of our being widely known by the name ICICI
Bank.

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Merger of Bank of Madura
Bank of Madura was merged with us effective March 10, 2001. The share exchange ratio fixed for the
transaction was two of our equity shares of Rs. 10 each for every equity share of Bank of Madura of Rs. 10
each.

Amalgamation of ICICI
ICICI, ICICI Capital Services and ICICI Personal Financial Services amalgamated with us with effect from
May 3, 2002. The Appointed Date for the merger specified in the Scheme of Amalgamation, which was the
date of the amalgamation for accounting purposes under Indian GAAP, was March 30, 2002. The
amalgamation was approved by the High Court of Judicature at Bombay vide its order dated April 11, 2002
and by the High Court of Gujarat at Ahmedabad vide its order dated March 7, 2002. The share exchange
ratio was one of our equity shares of Rs. 10 each for every two equity shares of ICICI of Rs. 10 each.

Amalgamation of The Sangli Bank Limited

The Board of Directors of ICICI Bank Limited and the Board of Directors of The Sangli Bank Limited
(Sangli Bank) at their respective Meetings held on December 9, 2006, approved an allstock amalgamation
of Sangli Bank with ICICI Bank. The amalgamation was subsequently approved by the Members of both
banks. RBI (RBI) approved the scheme of amalgamation effective April 19, 2007.

Details of ICICI Bank

Registered Address

"Landmark",
Race Course Circle,
Vadodra
Gujarat
390007

Tel: 0265-6722222 0265-6617200

Fax: 0265-6617341 0265-2339926
Email: investor@icicibank.com

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Website: http://www.icicibank.com
Group: ICICI Group

Registrars

3i Infotech Ltd Tower, No.5, 3rd to 6th Floor,

International Infotech Park,
Vashi New Mumbai - 400703
Maharashtra

Tel: 022-67928000
Fax: 022-67928095
Email: investors@3i-infotech.com
Website: http://www.3i-infotech.com

Management - ICICI Bank

Name Designation
Sandeep Bakshi Managing Director & CEO
Anup Bagchi Executive Director
Vishakha Mukye Executive Director
Neelam Dhawan Independent Director
Hari L Mundra Independent Director
Girish Chandra Chaturvedi Non-Executive (PT) Chairman

2.6.2 HDFC BANK

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The Bank was Incorporated on 30th August. A new private sector Bank promoted by housing
Development Corporation Ltd. (HDFC), a premier housing finance company. The bank is the first of its
kind to receive an in-principle approval from the RBI for establishment of a bank in the private sector.
Certificate of Commencement of Business was received on 10th October 1994 from RBI.
The Bank transacts both traditional commercial banking as well a investment banking. HDFC, the
promoter of the bank as entered into an agreement with National Westminister Bank Pc. and its
subsidiaries (Natwest Group) for subscribing 20% of the banks issued capital and providing technical
assistance in relation to the banks proposed banking business.
In 1996, HDFC Bank has entered the banking consortia of over 50 corporates, including some leading
multinational companies, flagship companies of local business houses and strong public sector companies.
HDFC Bank has set up a state-of-the-art dealing room to handle all transactions possible in Indian
financial markets.
HDFC Bank has become the first private sector bank to conclude a structured interest rate option deal.
It has launched its Versova branch, the 11th branch in Mumbai. The Bank, as part of its expansion plans in
the South, has opened another branch in Chennai. HDFC Bank has entered into strategic alliances with 10
overseas banks to provide customers with a wide range of derivatives including interest rate and foreign
currency swaps. On October 14 introduced ATMs that converse in a regional language.
In 1997, HDFC Bank has launched an account in all its 28 branches across India that seeks to free
depositors from minimum balance requirement, for the first time in the country. It was all set to launch its
debit card by April 1998.

In 2000, HDFC Bank also signed a memorandum of understanding with Singapore Telecom's e-commerce
arm Sesami.Com Pvt Ltd.
The Bank latter also entered into a partnership agreement with National Computer Systems, the e-
commerce unit of Singtel. A new company called SESAMi.com (India) has been formed by a strategic
alliance between HDFC Bank and Singapore Telecom's e-commerce company SESAMi.com, to offer e-
commerce solutions for the Indian market. HDFC Bank has also launching an online electronic banking
solution called Enet which will allow corporates to access their accounts over the net and carry out trade
related transactions and cash management functions.
In 2015, HDFC Bank looking at 3G services to boost mobile banking share. The Housing Development
Finance Corporation Limited (HDFC), one of the largest private sector banks in India, which had a network
of 1,725 branches as at March 2010, opened 275 new branches in the current fiscal. The bank now has a
total network of 2,000 branches spread across 1,000 cities. The bank also acquired Centurion Bank of
Punjab in 2008, which adds around 404 branches to its network. The Asian Banker magazine has declared
22 | Page
that the strongest bank in Asia Pacific region is HDFC. India's private banking major ,HDFC Bank has
launched its new credit card offering called Infinia in direct competition with global credit card major,
American Express(Amex) .The new HDFC product is exclusively for the bank's high net worth and super
rich clients in the country. Company has splits its Face value of Shares from Rs 10 to Rs 2.

In 2012, The third-largest US lender by assets, Citigroup Inc has sold its complete 9.85 per cent stake in
Housing Development Finance Corporation Ltd (HDFC) for USD 1.9 billion. HDFC Bank which is a
major Indian financial services company based in Mumbai stated that they have collaborated with Punjab
Grains Procurement Corporation Ltd (PUNGRAIN) with an aim to make easy and faster payment to its
agents who are dealing in agricultural products in about 350 mandis in Punjab. This ties up with IOC to
offer banking services in rural
Areas. HDFC Bank opens office in Abu Dhabi. HDFC Bank has launched its mobile banking application
in Hindi on targeting about 560-million Hindi-speaking population of India. HDFC Bank opens 87
branches in Punjab, Haryana in a single-day.

Registered Address

HDFC Bank House, Senapati Bapat Marg, Lo,

Mumbai
Maharashtra
400013

Tel: 022-66521000
Fax: 022-24960737
Email: shareholder.grievances@hdfcbank.com
Website: http://www.hdfcbank.com
Group: HDFC Group
Registrars: Datamatics Financial Services Ltd. Plot No. B 5, MIDC,
Part B Cross Lane
Marol, Andheri (E) Mumbai – 400093
Maharashtra Tel: 022-28213383 - 90

23 | Page
Management - HDFC Bank
Name Designation
Sashidhar Jagdishan Managing Director
Shyamala Gopinath Chairperson
Smita Bhagat Group Head
Srikanth Nadhamuni Non Executive Director

Chapter- III: Analysis and Findings:

3.1 - Objective

Every firm is most concerned with its profitability. One of the most frequently used tools of financial ratio
analysis is profitability ratios which are used to determine the company's bottom line and its return to its
investors. Profitability measures are important to company managers and owners alike. If a small business
has outside investors who have put their own money into the company, the primary owner certainly has to
show profitability to those equity investors.

A class of financial metrics that help investors assess a business's ability to generate earnings compared
with its expenses and other relevant costs incurred during a specific period. When these ratios are higher
than a competitor's ratio or than the company's ratio from a previous period, this is a sign that the company
is doing well.

24 | Page
Profitability ratios show a company's overall efficiency and performance. We can divide profitability ratios
into two types: margins and returns. Ratios that show margins represent the firm's ability to translate sales
dollars into profits at various stages of measurement. Ratios that show returns represent the firm's ability to
measure the overall efficiency of the firm in generating returns for its shareholders.

Profit is the difference between revenue and expenses over a period, usually, one year. Profitability ratios
are to measure the operating efficiency of the company. Besides management, lenders and owners of the
company are interested in the analysis of the profitability of the firm. If profits are adequate, there would be
no difficulty for lenders, normally, to get payment of interest and repayment of principal. Owners want to
get required rate of return on investment. The finance manager should evaluate the efficiency of the
company, in terms of profits. So, profit is important to everyone associated with the firm.

A financial services sector plays a critical role in fulfilling the needs of growing and increasingly diverse
economy, offering high quality services to business and individual alike. Though Indian banking system
registered commendable progress in terms of geographical and functional coverage, its performance in
terms of operational efficiency and viability still leaves considerable room for improvement

A bank’s balance sheet and income statement are valuable information sources for identifying risk taking
and assessing risk management effectiveness. Although amounts found on these statements does not
provide valuable insights of performance so ratio analysis is required for determining good or bad
performance of bank and also for determining its causes. The study includes the calculation of different
profit ratios. It compares five years financial statements of the company to know its performance in these
different years.

The present study is aimed to examine the following objectives:

⮚ To analyze and compare the Financial Performance of HDFC and ICICI Bank.
⮚ To make a comparative study of the profitability ratios of the selected banks.
⮚ To graphically represent the ratios and its change during the selected period of study.
⮚ To offer suggestions for the improvement of efficiency in HDFC and ICICI Bank.

25 | Page
3.2 - Methodology

3.2.1-Source of data

It was a published data and it was collected from different sources like the latest publications made by the

banks in their respective websites like the annual reports, journals, etc. and surely the most important source

was our college library.

3.2.2-Period of study

It took me 3 months- March, Apr, May' 21 to thoroughly go through the project and make a

proper survey on it.

3.2.3-Data time

In order to collect the following data almost 5 to 7 weeks’ time was taken by me as the source of data

collection was from a secondary source.

3.2.4-Type of study.

In aggregate 2 case studies analysis have been taken in the form of secondary data from different reports,

financial statements & websites.

3.2.5-Tools Used

Various tools have been used in this project for proper data evaluation.

Statistical data, numerical & various geometrical representations have been made for a clear analysis.

Statistical technique used for calculation of ratios is in terms of percentage method.

Microsoft office tools have been used and graphs have been prepared for comparative analysis.

3.3- Comparative Analysis of Profitability Ratios of ICICI & HDFC Banks

Profitability ratio is the common ratio required to judge the profitability of commercial banks. This ratio
measures the profitability or the operational efficiency of the banks. The profitability ratios are calculated

26 | Page
by relating the returns with the (i) Income of the bank (ii) Assets of the bank and (iii) the owner’s
contribution.

3.3.1- Net Profit Ratio

Net profit is obtained when interest is expanded; operating expenses and taxes are deducted from total
income. This ratio establishes relationship between profit and total income. It indicates management
efficiency. Net Profit Ratio= (Net Profit/Total Income)*100

Table 1- Net Profit Ratio

YEARS ICICI BANK HDFC BANK

2021 18.92 18.56

2020 17.24 16.28

2019 16.1 15.13

2018 14.28 17.32

2017 18.23 17.77

Source: Various issues of CMIE, RBI and Bank Annual Report

Net profit Ratio Analysis

20
18
16
14
12
10
8
6
4
2
0
1 2 3 4 5

ICICI Bank HDFC BANK

27 | Page
 Source: Author’s Calculation

Interpretation:

The net profit ratio of ICICI and HDFC Bank are recorded mean at 16.95 and 17.01 per cent above
Table-1 respectively. There is a steady increase in the net profit ratio of ICICI Bank whereas HDFC Bank
shows a fluctuating increase. There is no significance difference between the selected two banks net
profit ratio. It clears that HDFC Bank net profit ratio is more compared with ICICI Bank.

3.3.2- Operating Profit Ratio

The profit earned from bank’s normal core business operations. This value does not include any profit
earned from the bank’s investments (such as earnings from banks in which the bank has partial interest)
and the effects of taxes and provisions.

Operating Profit Ratio= (Operating Profit/Total Income)*10

Table 2- Operating Profit Ratio

Years ICICI BANK HDFC BANK

2021 7.13 13.06

2020 11.04 12.47

2019 12.35 14.50

2018 13.38 18.70

2017 13.57 18.79

Source: Various issues of CMIE, RBI and Bank Annual Reports

28 | Page
 Operating Profit
ICICI bank
Ratio

HDFC bank

Years

Source: Author’s Calculation

Interpretation:

The operating profit ratio of ICICI and HDFC Bank are recorded mean at 11.50 and 15.50 per cent
(Table-2) respectively. There is a significance difference between the selected two banks operating profit.
It clears that ICICI Bank operating profit ratio is less compared with HDFC Bank. Hence, we can say that
the operating profit ratio of ICICI bank have increased during the study period but HDFC Bank operating
profit ratio is more in the study period.

3.3.3- Dividend Per Share

Dividend per share indicates the return earned per share. It is bit different from return on equity capital. It
is calculated by dividing dividend on equity share capital by the total number of equity shares. It is a
good measure of profitability and when compared with DPS similar other banks, it gives a view of the
comparative earnings or earning power of a bank.

Dividend Per Share=Dividend on Equity Share Capital/No. of Equity Shares

Table 3- Dividend Per Share

Years ICICI BANK HDFC BANK

2021 16.50 4.30

2020 20.00 5.50

2019 23.00 6.90

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 2018 5.00 8.00

2017 5.00 9.50

Source: Various issues of CMIE, RBI and Bank Annual Reports

HDFC bank
Years

ICICI bank

Dividend Per Share

Source: Author’s Calculation

Interpretation:

The average dividend per share of ICICI and HDFC Bank are recorded as Rs.13.9 and Rs.6.84
respectively but HDFC bank share price split to Rs. 2.The split share price of HDFC Bank has not much
effected the dividend pay out ratio.

3.3.4- Earnings Per Share

Earnings per share indicate the return earned per share. It is bit different from return on equity capital. It is
calculated by dividing the net profit after taxes minus preference dividend by the total number of equity shares.
It is a good measure of profitability and when compared with EPS similar other banks, it gives a view of the
comparative earnings or earning power of a bank. EPS indicates whether the earning power of the bank has
increased or not.

Earnings Per Share=Profit after tax-Preference Dividend/No. of Equity Shares

Table 4- Earnings Per Share

Years ICICI BANK HDFC BANK

2021 56.09 22.02

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 2020 72.17 28.27

2019 84.95 35.34

2018 19.28 42.10

2017 16.73 48.80

Source: Various issues of CMIE, RBI and Bank Annual Reports

Earnings Per
Share

ICICI bank
HDFC bank

Years

Source: Author’s Calculation

Interpretation:
The earnings per share of ICICI and HDFC Bank are recorded mean at Rs.49.84 and Rs.35.31 (Table-4)
respectively but HDFC bank share price split to Rs. 2. It clears that ICICI Bank earnings per share ratio
are more increased compared with HDFC Bank.

3.3.5- Return On Net Worth (RON)

Return on shareholders’ investment, popularly known as return on investment or return on

shareholders’ funds is the relationship between net profits and the proprietors’ funds. Net profit after
interest and tax is divided by the shareholders’ funds. This ratio is one of the most important ratios
used for measuring the overall efficiency of a bank. The primary objective of business is to maximize its
earnings and this ratio indicates the extent to which this primary objective of business is being achieved.
31 | Page
 This ratio is of a great importance to the present and prospective shareholders as well as the
management of the bank.

Return on Net Worth=Net Profit/Net-worth

Table 5- Return On Net Worth

Years ICICI BANK HDFC BANK

2021 10.70 17.26

2020 12.48 18.57

2019 13.40 19.50

2018 13.89 16.47

2017 10.83 16.91

Source: Various issues of CMIE, RBI and Bank Annual Reports

Net Worth
Return On

ICICI bank
HDFC bank

Years

Source: Author’s Calculation

Interpretation:
The average return on net-worth of ICICI and HDFC bank is 12.26 per cent and 17.74 per cent; hence
HDFC performance is good compared with ICICI bank. Both banks show a steady rise in return on net
worth.

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 3.3.6- Return On Assets:

This ratio measures the return on assets employed or efficiency in utilization of the assets. It is arrived by

dividing net profit by total assets.

Return on Assets= (Net Profit/ Total Assets)*100

Table 6- Return On Assets

Years ICICI BANK HDFC BANK

2021 1.44 2.22

2020 1.62 2.43

2019 1.73 2.59

2018 1.80 2.59

2017 1.42 2.62

Source: Various issues of CMIE, RBI and Bank Annual Reports

Return On
Assets

ICICI bank
HDFC bank

Years

Source: Author’s Calculation

Interpretation:
The average return on assets of ICICI and HDFC bank is 1.60 and 2.49 percent; hence HDFC
performance is good compared with ICICI bank. Both banks show a steady rise in return on assets.

33 | Page
3.4 - Findings

Based on the above comparative analysis of the profitability ratios of ICICI & HDFC Bank, following is the
summary of findings:

⮚ The net profit ratio of ICICI and HDFC Bank are recorded mean at 16.68 and 16.85 per cent
(Table-1) respectively. So the HDFC Bank net profit ratio is more compared with ICICI Bank.
⮚ The operating profit ratio of ICICI and HDFC Bank are recorded mean at 11.50 and 15.50 per cent
(Table-2) respectively. Hence ICICI Bank operating profit ratio is less compared with HDFC Bank.
⮚ The average dividend per share of ICICI and HDFC Bank are recorded as Rs.13.9 and Rs.6.84
respectively but HDFC bank share price changed Rs10 to Rs. 2 face value.
⮚ The earnings per share of ICICI and HDFC Bank are recorded mean at Rs.49.84 and Rs.35.31
(Table-4) respectively but HDFC bank share price changed Rs10 to Rs. 2.
⮚ The average return on net-worth of ICICI and HDFC bank is 12.26 per cent and 17.74 per cent;
hence HDFC performance is good compared with ICICI bank.

34 | Page
 ⮚ The average return on assets of ICICI and HDFC bank is 1.60 and 2.49 percent; hence HDFC
performance is good compared with ICICI bank.
⮚ Earnings per share for both the banks have shown a steady growth as well as the Dividend per
share.
⮚ Net profit has been growing slowly for ICICI Bank and HDFC bank has shown a growth since
2012 after the change in share price of the bank.

CHAPTER 4: Conclusion and Recommendations:

4.1 Conclusions

Financial ratio analysis is only a good method of financial analysis if there is comparative data available.
The ratios should be compared to both historical data for the company and industry data.

In the study comparative analysis has been done for the profitability ratios of ICICI & HDFC Bank and the
above findings where noticed about the average of the ratios which can be summarised in the following
table:

Ratio ICICI Bank HDFC Bank

Net Profit Ratio (%) 16.95 17.01 HDFC Bank
Operating Profit Ratio (%) 11.50 15.50 HDFC Bank
Dividend Per Share (Rs.) 13.9 6.84 ICICI Bank
Earnings Per Share (Rs.) 49.84 35.31 ICICI Bank
Return On Net Worth (%) 12.26 17.74 HDFC Bank
Return On Assets 1.60 2.49 HDFC Bank

On making a comparative study it is been noticed that the net profit , operating profit ratio and return on
net worth shows that HDFC Bank has higher profitability aspects as compared with ICICI Bank and on
these analysis future prospectus increases for the bank.

35 | Page
Whereas, Dividend and earnings per share as well as return on assets shows a favourable value for ICICI
Bank as compared with HDFC Bank. These ratios have been graphically compared to provide a better
visual analysis.

Ratio Analysis is a handy tool yet effective one which helps in the financial analysis of an organisation or
make a comparative study between two or more organisations. Finance managers, CEOs and CFOs use
these financial analysis for taking financial decisions. This project has been a great source of knowledge
and helpful to make a comparative study of the profitability analysis of the selected banks.

4.2 Suggestions and Recommendations

In the light of the above conclusions the following suggestions may be made:

❖ The banks can improve on selection of assets class for investment and other related factors such as
timing etc. This could enhance their Return to Total Assets and Total Investment to Total Deposits
ratios.
❖ The banks can concentrate on improving on Net Margin ratio which is relatively low. The above
mentioned suggestion would extend to better this position.
❖ The organizations might reconsider their dividend policy, which has been pretty dormant. In view
of increased free reserves as well as EPS, this suggestion holds sanctity. It would enhance the
market positioning of the organization.
❖ The steady growth of the banks will be beneficial for them in the long run since they will acquire
more and more trust of the shareholders and the other stakeholders to the organizations.

36 | Page
4.3 LIMITATIONS

● In this project report, I have tried to cover every aspect of profit ratio analysis but due to limited
time period & resources some areas have been cut short but without impairing the intended
knowledge it is supposed to provide.

● Due to the busy schedule of the high official of the companies, the collection of primary data was
not possible. As such, this project is restricted to the use of secondary data.

BIBLIOGRAPHY

● Magazine & Journals/ Newspaper:

● Cost & Management accounting, The Institute of Companies Secretary of India.

● R.N.Anthony, Analysis of Financial Statements

● D.K.Goel, Analysis of Financial Statements

● Basu & Dutta, Financial Accounting

● A Study on Financial Performance based on Ratios, at HDFC bank

● Annual Report of HDFC Bank

● Annual Report of ICICI Bank

● Comparative Financial Performance Of HDFC & ICICI Bank, Scholars world-international refereed
multidisciplinary journal of contemporary research eissn 2320-3145, issn 2319-5789

37 | Page
 Websites:

● www.crisil.com

● http://en.wikipedia.org/wiki/icici_bank

● http://en.wikipedia.org/wiki/hdfc_bank

● http://www.moneycontrol.com/financials/icicibank/balance-sheet

● http://www.moneycontrol.com/financials/hdfcbank/balance-sheet

● http://www.moneycontrol.com/financials/icicibank/profit&loss

● http://www.moneycontrol.com/financials/hdfcbank/profit&loss

● https://www.moneycontrol.com/financials/icicibank/balance-sheet/ici02

● http://financial-dictionary.thefreedictionary.com/Profitability+ratios

● http://ebooks.narotama.ac.id/files/ratios

Annexure A-ICICI Bank

Profit & Loss Account for 5 years (2017-2021)

Profit & loss account of ICICI Bank ------------------------------------ in Rs. Cr. -----------------------------------------
Mar’21 Mar’20 Mar’19 Mar’18 Mar’17
12 months 12 months 12 months 12 months 12 months

Income
Interest earned 52,739.43 49,091.14 44,178.15 40,075.60 33,542.65
Other income 15,323.05 12,176.13 10,427.87 8,345.70 7,502.76
Total income 68,062.48 61,267.27 54,606.02 48,421.30 41,045.41
Expenditure
Interest expended 31,515.39 30,051.53 27,702.59 26,209.18 22,808.50
Employee cost 3,102.69 4,749.88 4,220.11 3,893.29 3,515.28
Selling, admin & misc. Expenses 23,109.60 14,631.56 12,296.88 9,503.20 7,731.85
Depreciation 698.51 658.95 575.97 490.16 524.53
Operating expenses 12,683.55 11,495.83 10,308.86 9,012.89 7,850.44
Provisions & contingencies 14,137.25 8,544.56 6,784.10 4,873.76 3,921.22f
Total expense 58,336.19 50,091.92 44,795.55 40,095.83 34,580.16
38 | Page
 Mar’21 Mar’20 Mar’19 Mar’18 Mar’17
12 months 12 months 12 months 12 months 12 months
Net profit for the year 9,726.29 11,175.35 9,810.48 8,325.47 6,465.26
Profit brought forward 17,261.42 13,317.59 9,902.29 7,054.23 5,018.18
Total 26,987.71 24,493.94 19,712.77 15,379.70 11,483.44
Equity dividend 2,907.52 2,898.81 2,656.28 2,307.23 1,902.04
Corporate dividend tax 279.37 271.15 231.25 292.16 220.35
Per share data (annualised)
Earning per share (Rs.) 16.73 19.28 85.04 72.22 56.13
Equity dividend (%) 250.00 250.00 230.00 200.00 165.00
Book value (Rs.) 149.47 138.72 634.60 578.65 524.43
Appropriations
Transfer to statutory reserves 6,668.62 4,062.57 3,506.65 2,878.03 2,306.49
Transfer to other reserves 0.01 0.00 0.00 0.00 0.33
Proposed dividend/ Transfer to 3,186.89 3,169.96 2,887.53 2,599.39 2,122.39
Govt.
Balance c/f to Balance Sheet 17,132.19 17,261.42 13,318.59 9,902.29 7,054.23
Total 26987.71 24,493.94 19,712.77 15,379.70 11483.44

Annexure B-HDFC Bank

Profit & Loss Account for 5 years (2017-2021)

Profit & loss account of HDFC Bank ------------------------------------- in Rs. Cr. ----------------------------------------------
Mar’21 Mar’20 Mar’19 Mar’18 Mar’17
12 months 12 months 12 months 12 months 12 months
Income
Interest earned 60,221.45 48,469.90 41,135.53 35,064.87 27,286.35
Other income 10,751.72 8,996.35 7,919.64 6,852.62 5,243.69
Total income 70,973.17 57,466.25 49,055.17 41,917.49 32,530.04
Expenditure
Interest expended 32,629.93 26,074.24 22,652.90 19,253.75 14,989.58
Employee cost 5,702.20 4,750.96 4,178.98 3,965.38 3,399.91
Selling, admin & misc. expenses 19,638.99 15,768.85 13,073.31 11,320.41 8,430.96
Depreciation 705.84 656.30 671.61 651.67 542.52
Operating expenses 16,979.71 13,987.55 12,042.20 11,236.12 8,590.07
Provisions & contingencies 9,067.32 7,188.56 5,881.70 4,701.34 3,783.32
Total expenses 58,676.96 47,250.35 40,576.80 35,191.21 27,362.97
Mar’16 Mar’15 Mar’14 Mar’13 Mar’12
12 months 12 months 12 months 12 months 12 months
Net profit for the year 12,296.21 10,215.92 8,478.38 6,726.28 5,167.09
Profit brought forward 18,627.79 14,654.15 11,132.18 8,399.65 6,174.24
Total 30,924.00 24,870.07 19,610.56 15,125.93 11,341.33
Equity dividend 2,401.78 2,005.20 1,643.35 1,309.08 1,009.08

39 | Page
Corporate dividend tax 484.95 408.21 279.29 222.48 163.70
Per share data (annualised)
Earning per share (Rs.) 48.64 40.76 35.34 28.27 22.02
Equity dividend (%) 475.00 400.00 342.50 275.00 215.00
Book value (Rs.) 287.47 247.39 181.23 152.20 127.52
Appropriations
Transfer to statutory reserves 3,275.97 2,807.28 2,185.93 1,789.56 1,252.20
Transfer to other reserves 1,229.62 1,021.59 847.84 672.63 516.71
Proposed dividend/Transfer to 2,890.73 2,413.41 1,922.64 1,531.56 1,172.78
Govt.
Balance c/f to Balance Sheet 23,527.69 18,627.79 14,654.15 11,132.18 8,399.65
Total 30,924.00 24870.07 19,610.56 15125.93 11341.33

Annexure A-ICICI Bank

Balance Sheet for 5 years (2017-2021) (Rs. in crore)

Parameters MAR’21 MAR’20 MAR’19 MAR’18 MAR’17

(Rs Cr.) (Rs Cr.) (Rs Cr.) (Rs Cr.) (Rs Cr.)
SOURCES OF
FUNDS:
Share warrants & 6.70 7.44 6.57 4.48 2.39
outstanding
Share capital 1,163.17 1,159.66 1,155.04 1,153.64 1,152.77
Total reserve 88,565.72 79,262.26 72,051.71 65,547.84 59,250.09
Deposits 4,21,425.71 3,61,562.73 3,31,913.66 2,92,613.63 2,55,499.96
Borrowings 1,74,807.38 1,72,417.35 1,54,759.05 1,45,341.49 1,40,164.91
Shareholder’s Fund 89,735.58 80,429.36 73,213.33 66,705.96 60,405.24
Other liabilities & 34,726.44 31,719.86 34,755.55 32,133.60 32,998.69
provisions
TOTAL LIABILITIES 7,20,695.10 6,46,129.29 5,94,641.58 5,36,794.68 4,89,068.80

APPLICATION
OF FUNDS:
Cash and balances 27,106.09 25,652.91 21,821.83 19,052.73 20,461.29
with reserve bank of
India
Balances with banks 32,762.65 16,651.71 19,707.77 22,364.79 15,768.02
and money at call
and short notice
Investment 1,60,411.80 1,58,129.22 1,77,021.82 1,71,393.60 1,59,560.04
Advances 4,35,263.94 3,87,522.07 3,38,702.65 2,90,249.44 2,53,727.66
Gross block 13,676.86 10,404.42 9,950.61 9,643.58 9,424.39

40 | Page
Less: Accumulated 6,099.94 5,678.90 5,272.47 4,996.53 4,809.70
Depreciation
Less: Impairment of 0.00 0.00 0.00 0.00 0.00
Assets
Net block 7,576.92 4,725.52 4,678.14 4,647.06 4,614.69
Lease adjustment 0.00 0.00 0.00 0.00 0.00
Capital work in 0.00 0.00 0.00 0.00 0.00
progress
Other Assets 57,573.70 53,447.87 32,709.39 29,807.07 34,937.10
TOTAL ASSEST 7,20,695.10 6,46,129.29 5,94,641.58 5,36,794.68 4,89,068.80
Contingent Liability 9,00,798.78 8,51,977.61 7,81,430.45 7,89,989.31 9,15,465.11
Bills for collection 21,654.73 16,212.97 13,534.91 12,394.53 7,572.06

Annexure B-HDFC Bank

Balance Sheet for 5 years (2017-2021) (Rs. in crore)

Particulars Mar’21 Mar’20 Mar’19 Mar’18 Mar’17
Liabilities 12 months 12 months 12 months 12 months 12 months
Share capital 505.64 501.30 479.81 475.88 469.64
Reserve& 72172.13 61508.12 42998.82 35738.26 29455.04
surplus
Net worth 72677.76 62009.42 43478.63 36214.15 29924.68
Secured loan 53018.47 45213.56 39438.99 33006.60 23846.51
Unsecured loan 546424.19 450795.64 367337.48 296246.98 246706.45
TOTAL 672120.43 558018.62 450255.10 365467.73 300477.63
LIABILITIES
Assets
Gross block 3343.16 3121.73 2939.92 2703.08 2347.19
Less: acc .00 .00 .00 .00 .00
depreciation
Net block 3343.16 3121.73 2939.92 2703.08 2347.19
Capital work in .00 .00 .00 .00 .00
progress
Investments 163885.77 166459.95 120951.07 111613.60 97482.91
Inventories .00 .00 .00 .00 .00
Sundry debtors .00 .00 .00 .00 .00
Cash and bank 38918.84 36331.45 39583.64 27280.17 20937.73
Loan and 502697.80 384589.94 328124.87 258735.05 217141.67
advances
Total current 541616.64 420921.39 367708.51 286015.22 238079.40
assets
Current liabilities 36725.13 32484.46 41344.40 34864.17 37431.87
Provision .00 .00 .00 .00 .00

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Total current 36725.13 32484.46 41344.40 34864.17 37431.87
liabilities
NET CURRENT 504891.50 388436.94 326364.11 251151.05 200647.53
ASSETS
Misc. expenses 0.00 0.00 0.00 0.00 0.00
TOTAL ASSETS 672120.43 558018.62 450255.10 365467.73 300477.63

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