SUMMER INTERNSHIP PROJECT REPORT

ON
FUNDS FLOW ANALYSIS
FOR
ICICI BANK
BY
SREERAM DIVYA
ROLL NO : ESCI/PGDM-GEN/18/08-208

UNDER THE GUIDANCE OF

Mr.IMRAN KHAN

In partial fulfillment of
POST GRADUATE DIPLOMA IN MANAGEMENT

ENGINEERING STAFF COLLEGE OF INDIA

HYDERABAD
(2018-2020)
DECLARATION

I hereby declare that project entitled “FUNDS FLOW ANALYSIS” is

bonafide work duly completed by me. It does not contain any part of the project or
thesis submitted by any other candidate to this or any other institute of the university.
All such materials that have been obtained from other sources have been duly
acknowledged.

SREERAM DIVYA
Roll No: ESCI/PGDM-GEN/18/08-208
CERTIFICATE

This is to certify that the Project Report titled “FUNDS FLOW ANALYSIS”
submitted by SREERAM DIVYA in partial fulfilment of Post Graduate Diploma
in Management at Engineering Staff College of India, Hyderabad is a record of
bonafide work carried out by her under my guidance and supervision.

Mr.IMRAN KHAN
Company Certificate Format (To be given on company letter head):

To whom so ever it may concern:

This is to certify that SREERAM DIVYA student of Engineering Staff College of

India has successfully completed project on the topic ‘FUNDS FLOW ANALYSIS’
from 20th may to 1st july in our organization under the guidance of Mr. Imran
khan

During this period her work has been found Excellent/Good/ Satisfactory.

We wish her the very best in her future endeavor

Authorized Signatory
ACKNOWLEDGEMENT
The success of this Summer Internship Project Report depends largely on the encouragement and
guidance of many others. I take this opportunity to express my gratitude to the people who have
been instrumental in the successful completion of my project.

I wish to extend my sincere gratitude to my company guide Mr. Imran khan & my Faculty Mentor
Ms. Rajini Prasad for their valuable insights, constant support and guidance throughout the
completion of my project.

I also take this opportunity to thank Prof. Prabhakar Reddy (Academic Director of Engineering
staff college of India, Hyderabad) for providing us with this summer internship opportunity.

The guidance and support received from all the members who contributed to this study was vital
for the completion of this study. Without all their encouragement and guidance this project would
not have been materialized.

SREERAM DIVYA

Roll No: ESCI/PGDM-GEN/18/08-208

INDEX

CHAPTER: 1: INTRODUCTION

1.1 Concept exploration

1.2 Need of the study
1.3 Objectives of the study
1.4 Methodology of the study
1.5 Techniques of analysis
1.6 Period of the study
1.7 Scope and limited of the study
2 Chapter II: Review of Literature
3 Chapter III: Profile of Industry and Company
4 Chapter IV: Data Analysis and Interpretation
5 Chapter V: Findings, Conclusions and Suggestions
6 Appendix/Annexure
7 Bibliography
ABSTRACT
The purpose of the funds flow statements is to show the movement of funds into and out of the
firm for the period (year). In particular, it highlights the size of the increase or decrease in
working capital for that period, and what has caused that increase or decrease. A change in the
amount of working capital can only be caused by changes in other sections of the balance sheet.

The composition of working capital can change (e.g. less stock and more debtors), but the actual
amount of working capital can only change if the total sources of finance (profits, capital,
disposal of fixed assets, long-term loans, etc.) is not the same as the total application of funds
(purchase of fixed assets, repayments of loans, payment of dividends, payment of tax, etc.) If the
source of funds is greater than the application of funds, this must result in an increase in working
capital
CHAPTER :1

INTRODUCTION

1.1 CONCEPT EXPLORATION:

A fund flow statement is a summary of a firm's inflow and outflow of funds. It tells us from
where funds have come and where funds have gone. Fund flows statement can indicate whether
sourcing of funds and their use match in sense and also reveal the prudence or otherwise of a
firm's financing and investment decisions The financial statement of the business indicate assets,
liabilities and capital on a particular date and also the profit or loss during a period. But it is
possible that there is enough profit in the business and the financial position is also good and still
there may be deficiency of cash or of working capital in business.

If the management wants to find out as to where the cash is being utilized, financial statement
cannot help. Therefore, a statement is prepared of the sources and applications of funds from
where Working Capital comes and where it is utilized. This is called Fund Flow statement.
Funds Flow Statement is an analytical tool in the hands of financial manager. The basic purpose
of this statement is to indicate on historical basis the changes in the working capital i.e., where
funds came from and where they are used during a given period.

The funds flow statement or statement of changes in financial position is a statement of flows, it
measures the changes that have taken place during two balance sheet dates.

According to R.N. Anthony

“Fund Flow is a statement prepared to indicate the increase in
cash resources and the utilization of such
resources of a business during the accounting period.”
Fund + Flow = Fund Flow
MEANING OF FUND The term fund has a variety of meaning such as cash fund, capital fund
and working capital fund.
1. Cash fund –In a narrow sense, fund means only cash. ‘Cash flow statement’ portrays net effect
of the various business transactions on cash into account receipts & disbursement of cash. This
concept of preparing fund flow statement is not accepted, as there are many such transactions
which do not affect cash but represent the flow of fund .for example: purchase of furniture
on credit does not affect cash but there is flow of fund.
2. Capital fund –Here fund means all financial resources used in the business, whether in the
form of men, money, material, machine & others.
3. Net working capital -Net working capital means difference between current asset and current
liabilities .funds generally refers to cash or cash equivalent or to working capital
MEANING OF FLOW
1.

The term ‘flow’ refers to changes or transfer and therefore the ‘flow of funds’ means transfer
of economic values from one asset to another, from one liability to another, from one asset to
liabilities or vice-versa or a combination of these. So flow of fund refers to increase or decrease
in net working capital.
2.
The increase or decrease in net working capital will take place only when one account, out of
two accounts to be affected in a transaction ,is a current account i.e. current asset or current
liabilities and the other account is non- current account i.e. fixed asset or long term liability or
capital.
3.
When a change in non- current account is followed by a change in another non current account, it
does not amount to flow of fund. It is because, in such case, neither the working capital increase
nor decrease.
Benefits of Fund flow Statement:
The utility of this statement can be measured on the basis of its contributions to the financial
management. It generally serves the following purposes:-
(1) Analysis of Financial Position: The basic purpose of preparing the statement is to have a rich
into the financial operations of the concern. It analyses how the funds were obtained and used in
the past. In this sens, it is a valuable tool for the finance manager for analyzing the past and
future plans of the firm and their impact on the liquidity.
In analyzing the financial position of the firm, the Funds Flow Statement answers to such
questions as-
1. Why were the net current assets of the firm down, though the net income was up or vice
versa?
2. How was it possible to distribute dividends in absence of or in excess of current income for
the period?
3. How was the sale proceeds of plant and machinery used?

(2) Evaluation of the Firm's Financing: One important use of the statement is that it evaluates the
firm' financing capacity. The analysis of sources of funds reveals how the firm's financed its
development projects in the past i.e., from internal sources or from external sources. It also
reveals the rate of growth of the firm.

1.2 NEED OF THE STUDY

Fund flow statement is prepared by the company to analyse the reasons or changes in the
Financial position of a company. It shows the inflow & outflow of the funds i.e sources and
application of funds for a particular period. In other words fund flow statement is prepared to
explain the changes in the Working Capital position of the company.

Fund flow statement gives the clear picture about the movement of funds between the opening
and closing dates of the balance Sheet. It is also called the Statement of Sources Of Funds,
Movement of funds statement. It is valuable and also helps to determine how the funds are
financed.

NEED FOR PREPARING FUNDS FLOW STATEMENT

1. Funds Flow Statement helps in analyzing the financial resources in detail and disclosing the
changes made between the two balance sheet dates.
2. It highlights the financial consequences of business operation.
3. It shows the extent funds were received, the ways of usage for specific period.
4. It shows the possibility to paying more dividend than the current earnings or paying normal
dividends in case of net loss for period.

1.3 OBJECTIVES OF THE STUDY

The main objectives of the fund flow statement are:

(1) Helpful in finding the answer to some important financial question :- A fund flow statement
is prepared to give satisfactory answer to the following question:-
(a) What have been the main source and application of funds during the period?
(b) How much funds have been generated from business operations?
(c) Where did the profits go?
(d) Why where dividends not larger?
(e) How was it possible to distribute dividends in excess of current earning or in the presence of
net loss for the period?
(f) Why the net current assets are up even though there is a net loss for the period?
(g) How was the expansion in plant and equipment financed?
(h) How was the repayment of long term debt accomplished?
(i) How was the increase in working capital financed?
(2) Helpful in financial analysis:- A fund flow statement provides a complete analysis of the
financial position of a firm.
(3) It provides more reliable figures of profit and loss of the business:- It gives much more reliable
figure of the profits of the business than the figures shown by P/L account because the figure of
profit shown by P/L account is affected by the personal decision of management in deciding the
amount of depreciation and other adjustments regarding the writing off preliminary expanses etc.
(4) It enables to know whether the funds have been properly used:- The funds flow statement
enables the management to know whether the funds have been properly used in purchasing various
assets or repaying loans etc.
(5) Helpful in proper management of working capital:- While managing working capital in a
business, it becomes essential to ensure that it should neither be excessive nor inadequate. A fund
flow statement indicates the excessiveness or inadequacy in working capital.
(6) Helps in preparation of budget for the next period:- A fund flow statement is prepared for next
year, it will enable the management to plan its financial resources properly. The firm will know
how much funds it requires, how much the firm can manage internally and how much it should
arrange from outside source. This is helpful in preparing the budgets for the future period.
(7) It helps a firm in borrowing operations:- A fund flow statement prepared for the future period
indicates whether the company will have sufficient funds to repay the interest & loans in time.
(8) Helpful in determining dividend policy: - Sometimes, there may be sufficient profit but the
distribution of dividend may not be possible due to its adverse effect on the liquidity and working
capital of the business. in such cases a funds flow statement help in leading whether to distribute
the dividend or not because a funds flow statement will reveal from where and how much funds
can be managed for distributing the dividends.
(9) Useful to shareholders:- Shareholders also get information about the financial policies of the
enterprise with the help of fund flow statement.

SOURCES AND USES (APPLICATIONS) OF FUNDS: Since a fund flow statement describes
the varies sources and uses of funds, it is imperative that one should know the varies sources and
uses of funds:

Sources of funds:
Generally funds are derived from:
1. Operating of business i.e. operating income
2. Income from investment
3. Sale of assets
4. Sale of long term investments
5. Contribution of share holders
6. Increase in long term liabilities, e.g., issue of debentures
7. Gifts, damages awarded in legal action etc.

Uses (Applications) of funds:

Generally funds are utilized to:

8. Operating loses
9. Repayment of long term loan and debentures
10. Redemption of preference share capital
11. Payment of cash dividends
12. Purchase of fixed assets
13. Purchase of long term investments Loss of cash by embezzlement costs in legal action etc.
IMPORTANCE OF FUNDS FLOW STATEMENT:
Fund flow statement is a useful tool in the financial managers’ analytical kit. The basic propose of
this statement is to indicate where funds came from and where it was used during certain period.
Following are the uses of this which show its importance:
[1] Fund flow statement determines the financial consequences of business operations. It shows
how the funds were obtained and used in the past. Financial manager can take corrective actions.
[2] The management can formulate its financial policies – dividend, reserve etc. on the basis of
the statement.
[3] It serves as a control device, when comparing with budgeted figures. The financial manager
can take remedial steps, if there is any deviation. [4]Other points:
1. It points out the sound and weak financial position of the enterprise.
2. It points out the causes for changes in working capital. 201
3. It enables the Bankers, creditors or financial institutions in assessing the degree of risk involved
in granting credit to the business.
4. The management can rearrange the firm’s financing more effectively on the basis of the
statement.
5. Various uses of funds can be known and after comparing them with the uses of previous years,
improvement or downfall in the firm can be assessed.
6. It provides a basis for preparation budgets for the future.
7. The statement compared with the budget concerned will show to what extent the resources of
the firm were used according to plan and what extent the utilization was unplanned.
8. It tells whether sources of funds are increasing or decreasing or constant.
9. It points out the financial strengths and weaknesses of the business.
10. It helps in working capital management of the company.
11. It appraises the shareholders regarding the uses of funds in the business.
1.4 Methodology of the study:
The methodology adopted for this study includes primary and secondary data.
More than this personal interviews are conducted with the financial manager and other officials
to elicit the necessary information. interviews are very effective and they have provide needed
information particularly to complete this report discussions are held to verify the data obtained
secondary sources.
Primary data:
Primary data will be through regular interactions with officilas of ICICI. Ration relatonships
will be established basing on the theoretical literature available from the finance text books and
the ICICI balance sheets and profit and loss a/c.
Secondary data:
 Annual reports of the ICICI 2017 to 2018
 Financial statements of the ICICI
Required information is collected from friends,lecturers.
1.5 Analysis of funds flow:
One of the most fundamental objectives of business is to make a profit. Long run survival
requires that the business must be able to deal with any liquidity problems which arise in the
short term. Basically any business must be concerned with making a profit and marinating a
solvent financial position. The financial statement of the business indicates assets, liabilities and
capital on a particular date and also the profit or loss during a period. But it is possible that there
is enough profit in the business and the financial position is also good and still there may be
deficiency of cash or of working capital in business.

If the management wants to find out as to where the cash is being utilized, financial statement
cannot help. In the other words, the profit and loss account and balance sheet statements are the
common important accounting statements of a business organization. The profit and loss account
provides the financial information relating to only a limited range of financial transactions
entered into during an accounting period and which have impact on the profits to be reported.
The balance sheet contains information relating to capital debt raised or assets purchased. Along
with the information about the assets and liabilities as well as the profit and loss, it is equally
important to know what funds became available during the accounting year and how such funds
were applied.
This information may be obtained by preparing a statement of source and application of funds.
This statement demonstrates the movement of funds into and out of the business during the
course during the accounting period.
The term ‘fund’ has been defined and interpreted differently by different experts. Broadly the
term ‘fund’ refers to all the financial resources of the company. On the other extreme, fund has
been understood as ‘cash’ only. According to the International Accounting Standard No. 7, the
term generally refers to cash, to working capital and to cash and cash equivalents (long term
financial sources).
A) Fund means cash: Under this concept, the term “funds” is used only in the sense of cash and
bank balance. Here, only the changes in cash and bank are considered. Hence, the statement is
called “Cash Flow statement. This statement aims at listing the various items which bring about
changes in the cash balance between two balance sheet dates. Cash planning becomes useful for
control purposes. Since cash is considered as short term assets, they are subjected to short term
fluctuations. A delay in making payment to suppliers and a provision of one month’s credit for
making a payment of land purchases may show sufficient cash flow. They may reflect a
satisfactory position, but it is not a reality. Therefore, cash equivalent concept of fund is useful
only for short term financial planning and not for long term. Thus cash and bank is one part of
fund.
B) Fund means Working Capital: Working capital is the excess of current assets over current
liabilities.
It means working capital = Current asserts - current liabilities.

It is an alternative measure of the changes in the financial position. All those transactions which
increase or decrease working capital are included in this statement. It excludes all such items
which do not affect the working capital. The working capital concept of funds is in conformity
with normal accounting procedures. Hence, a funds flow statement based on this concept fits
well with the other statements. Moreover, working capital is also a measure of short term
liquidity of the firm. Therefore, an analysis of factors bringing about a change in the amount of
net working capital is useful for decision making by shareholders, creditors and management.
Due to these reasons, the working capital approach to funds is more useful than the cash
approach. 195 The operating cycle of working capital (working capital flow) is as follow:
C) Fund means total financial resources: The term “funds” is very often used in the sense of
useful financial resources also. Cash approach and working capital approach both are incomplete
and inadequate to the extent that they omit a few major financial and investment transactions.
Such items do not affect net working capital. But, if they are included, they would certainly
provide qualitative information for the decision making, For example issuing equity shares and
debentures for purchase of buildings or assets shall not have any effect on the working capital.
But it is a significant financial transaction that should be disclosed. Therefore, this concept seems
to be the best approach to disclose the changes in the financial position as compared to other
concepts. It is in conformity with the statutory regulations and legal requirements.

CONCEPT OF FUND FLOW:

The term "Flow of Funds" refers to changes or movement of funds or changes in working
capital in the normal course of business transactions. The changes in Receivables Finished goods
Cash Balance Raw Materials, Labour Expense Working Capital Flow 196 working capital may
be in the form of inflow of working capital or outflow of working capital. In other words, any
increase or decrease in working capital when the transactions take place is called as "Flow of
Funds."
If the components of working capital results in increase of the fund, it is known as Inflow of
Fund or Sources of Fund. Similarly, if the components of working capital effects in decreasing
the financial position it is treated as Outflow of Fund. For example, if the fund raised by way of
issue of shares will be taken as a source of fund or inflow of fund.

This transaction results in increase of the financial position. Like this, the fund used for the
purchase of machinery will be taken as application or use of fund or outflow of fund, because it
stands to reduce the fund position. Increase the funds while others decrease the funds. Some may
not make any change in the funds position. In case a transaction results in increase of funds, it
will be termed as a “sources of funds”. In case a transaction results in decrease of funds it will be
taken as an application or use of funds. In case a transaction does not make any change in the
funds position, it is said that it is a non-fund transaction.

No Flow of Funds:
Some transactions may not make any movement or changes in the fund position. Such
transactions are involved within the business concern. Like the transaction which involves both
between current assets and current liabilities and between non-current assets and non-current
liabilities and hence do not result in the flow of funds. For example, conversion of shares in to
debenture. Such transaction 197 involves between non-current accounts only and this activity
does not effect in increase or decrease of the working capital position
1.6 Period of study:
The duration of study starting from 20th may to 1st july.

1.7 Limitations of funds flow analysis:

The main limitations of fund flow statement are as under:
(1) The statement lacks originality because it is only rearrangement of data appearing in account
books
(2) It indicates only the past position and not future.
(3) It indicates Fund flow a summary form and it does not show various changes which take place
Continuously.
(4) When both the aspects of a transaction are non- current, even then they are not included in this
statement. It is not an ideal tool for financial analysis.
(5) It is not an original statement but simply a rearrangement of two statements or financial data.
(6) It is not a substitute of income statement or a balance sheet. It is only a supplement to them.
(7) The present study is only for the 5 banks i.e from the financial year (2017 to 2018)

COMPONENTS OF FLOW OF FUNDS: In order to analyze the sources and application of funds,
it is essential to know the meaning and components of flow of funds given below:
(l) Current Assets (2) Non-Current Assets (Fixed or Permanent Assets) (3) Current Liabilities (4)
Non-Current Liabilities (Capital & Long-Term Liabilities) (5) Provision for Tax (6) Proposed
Dividend
CHAPTER : 2

REVIEW OF LITERATURE
The main objective to achieve in the literature review is developing knowledge and
understanding of the previous work or activity in regard to the topic being researched. The
literature review also addresses the importance and need to inform the investigator as to the main
findings, trends, area of debate or controversy, area of neglect and suggestions research.

Accrual Accounting Basis3 is an accounting method that measures the performance and status
ofa company regardless of when cash transactions occur; financial transactions and events are
recognized by matching revenues to expenses (the matching principle) at the time when the
transaction occurs rather than when payment actually is made (or received). This allows current
cash inflows and outflows to be combined with expected future cash inflows and outflows to
provide a more accurate picture of a company's current financial condition. Accrual accounting is
the standard accounting practice for most big companies; however, its relative complexity makes
it more expensive to implement for small companies. This is the opposite of cash accounting,
which recognizes transactions only when there is an exchange of cash.
CHAPTER 3

PROFILE OF INDUSTRY AND COMPANY

ABOUT ICICI BANK

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and
was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through
a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on
the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in
fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The principal objective was to create
a development financial institution for providing medium-term and long-term project financing to
Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering only
project finance to a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In
1999, ICICI become the first Indian company and the first bank or financial institution from non-
Japan Asia to be listed on the NYSE.

History

In 1955 ICICI was formed as an initiative of the World Bank. In the 1990s, ICICI transformed its
business from a financial institution limited to development projects to a diversified financial
services group. Ever progressing with the times, ICICI addressed a need to upgrade its corporate
structure to that of universal banking.

The merger of ICICI with ICICI bank seemed like a natural step in line with its newly adopted
universal outlook. This would enhance value for ICICI shareholders with low-cost deposits,
increased fee-based income, participation in the payment system and transaction banking
services. It would also greatly benefit ICICI Bank shareholders through a large capital base and
scale of operations, access to corporate relationships built over five decades, new business
segments and more
SERVICES:
ICICI Bank offers a host of products and services to its clients, which include Deposits, Loans,
Cards, Investments, Insurance, Demat, NRI Services and Online Services etc.

Following deposits are offered:

 Savings Account
 Advantage Deposit
 Special Savings Account
 Life Plus Senior Citizens Savings Account
 Fixed Deposits
 Security Deposits
 Recurring Deposits
 Tax-Saver Fixed Deposit

ICICI Bank offers following loan facilities:
 Home Loans
 Loan Against Property
 Personal Loans
 Car Loans
 Two Wheeler Loans
 Commercial Vehicle Loans
 Loans Against Securities
 Loan Against Gold Ornaments
 Pre-approved Loans

ICICI HOME LOANS:

 Attractive and customer friendly loan interest rates

 Loans as low as INR 0.2 million is available ICICI Bank is the largest provider of Home Loans
in India. ICICI Home Loans offer unbeatable benefits to ensure that its clients get the best deal
without any hassles. ICICI Bank Home Loans provide loans not only at competitive interest rates,
but also are so designed that they cater to the specific needs of consumers.
New products / New features in existing products are introduced from time to time based on
customer feedback. ICICI Bank offers easy home loans for purchase or construction of flat or
house.

ICICI BANK CREDITS:

The provision of paying for an expensive commodity in easy installments is the basic advantage
of using a credit card. An ICICI Credit Card provides the facility of cash, convenience and a
range of benefits, anywhere in the world.
The benefits associated with ICICI Bank Credit cards are:
 Free cards for a lifetime
 Insurance benefits
 Global emergency assistance service
 Discounts
 Utility payments
 Travel discounts and and a few others.
ICICI Bank Investments Plans:

 ICICI Bank Tax Saving Bonds

 Mutual Funds
 Government of India Bonds
 Initial Public Offers (IPO) by Corporates
 Foreign Exchange Services
 ICICI Bank Pure Gold
 Senior Citizens Savings Scheme, 2004

NRI Services By ICICI Bank:

Following services are offered to the NRIs:
 Money Transfer
 Bank Accounts
 Investments
 Home Loans
 Insurance
ICICI Mobile Banking:

A user friendly automated service menu offers customers, a convenient access to their accounts
coupled with security. All the transactions are protected by a ATM PIN (Personal Identification
Number) which is a personal password to their respective Bank & Credit Card Account and T
pin in case of Demat Account . Any additional assistance is provided by the Phone Banking
Officers (PBOs).
Self Phone Banking (IVR) Access Mechanisms are as follows :

 For Deposits, customer needs to key-in his ATM or Debit Card Number and its corresponding
ATM PIN.
 For Credit Cards , customer needs to key-in his 16 digit Card Number and its corresponding ATM
PIN.
 For Demat Account Holders , customer needs to key-in his 14 Digit Demat Account Number and
its TPIN
 For Bond Account Holders, customer needs to key in the Bond Holder Number only.
 All the above facilities are obtained absolutely free of charge.
Some of the Phone Banking services offered by ICICI Bank are:

Bank services:

 Account Balance
 Mini Statement
 Cheque Book Request
 Cheque Status Enquiry
 Stop Cheque Payment
 Utility Bill Payment
 Internet Userid
 Mobile banking Registration

Card Services:
 Outstanding Balance
 Details of Last Statement
 Details of Last Payment
 Last five Transactions
 Reward Points status

Demat Services:
 Information on Redemption:
 Information on Interest
 Information on Despatch of Bonds certificates

Other Services:
 Loss or Replacement of card
 Re-issue of ATM PIN
 Standing Instructions
 Complaints and suggestions
 Inquire about any ICICI Bank product

WHAT MAKES ICICI BANK DIFFERENT FROM OTHERS?

 Experience: They offer a blend of imagination and experience that you won't find
anywhere. Combining their expertise in end-to-end operations, they think with creative
design, plans, dream in digital, and problem solving with data analytics.
Ideas: Fresh ideas take simplicity, Focus, and clarity of vision which gives them
a sense of direction and destination. It captures their aspiration of being the best in everything
they do, so is the basis for what they all.

 stand as one company. Their mission and vision guide the choices and decisions which
their employees make in everyday life. They are here to help you make more successful
than you ever thought possible.
 Passion: They love what they do. And they strive to surpass their own expectations of what
they can do with selling ideas and novel executions they are creative no matter how difficult
the situation is.

INDUSTRY PROFILE

Banking sector:

Before the 20th century, usury, or lending money at a high rate of interest, was widely prevalent
in rural India. Entry of Joint stock banks and development of Cooperative movement have taken
over a good deal of business from the hands of the Indian money lender, who although still exist,
have lost his menacing teeth.

In the Indian Banking System, Cooperative banks exist side by side with commercial banks and
play a supplementary role in providing need-based finance, especially for agricultural and
agriculture-based operations including farming, cattle, milk, hatchery, personal finance etc. along
with some small industries and self-employment driven activities.

Generally, co-operative banks are governed by the respective co-operative acts of state
governments. But, since banks began to be regulated by the RBI after 1 st March 1966, these
banks are also regulated by the RBI after amendment to the Banking Regulation Act 1949. The
Reserve Bank is responsible for licensing of banks and branches, and it also regulates credit
limits to state co-operative banks on behalf of primary co-operative banks for financing SSI
units.
The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level 5 in the Faster Payments
Innovation Index (FPII).

a. Axis Bank
Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of
financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture
and Retail Businesses. The Bank has a large footprint of 4,050 domestic branches (including
extension counters) with 11,801 ATMs & 4,917 cash recyclers spread across the country as on
31st March, 2019. The overseas operations of the Bank are spread over nine international offices
with branches at Singapore, Hong Kong, Dubai (at the DIFC), Colombo and Shanghai;
representative offices at Dhaka, Dubai, Abu Dhabi and an overseas subsidiary at London, UK. The
international offices focus on corporate lending, trade finance, syndication, investment banking
and liability businesses.With a balance sheet size of Rs. 8,00,997 crores as on 31st March 2019,
Axis Bank has achieved consistent growth and with a 5 year CAGR (2013-14 to 2018-19) of 16%
in Total Assets, 14% in Total Deposits, 17% in Total Advances

b. HDFC Bank
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive
an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private
sector, as part of RBI's liberalisation of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in
Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January
1995.

c. YES Bank
YES BANK, India’s fourth largest private sector Bank, is an outcome of the professional
entrepreneurship of its Founder Rana Kapoor and his highly competent top management team, to
establish a high quality, customer centric, service driven, bank catering to the “Sunrise Sector of
India”. YES BANK is the only Greenfield Bank license awarded by the RBI in the last two
decades, associated with the finest pedigree investors. YES BANK, a "Full Service Commercial
Bank”, has steadily built a Corporate, Retail & SME Banking franchise, with a comprehensive
product suite of Financial Markets, Investment Banking, Corporate Finance, Branch Banking,
Business and Transaction Banking, and Wealth Management business lines across the country.
CHAPTER : 4

DATA ANALYSIS AND INTERPRETATION

Balance sheet of icici bank:(2017-2018)

total Share Capital 1,289.46 1,285.81

Equity Share Capital 1,289.46 1,285.81

Share Application Money 4.68 5.57

Preference Share Capital 0.00 0.00

Reserves 104,029.40 100,864.37

Revaluation Reserves 3,044.51 3,003.19

Networth 108,368.05 105,158.94

Deposits 652,919.67 560,975.21

Borrowings 165,319.97 182,858.62

Total Debt 818,239.64 743,833.83

Other Liabilities and Provisions 37,851.46 30,196.40

Total Liabilities 964,459.15 879,189.17

Cash and Balances with RBI 37,858.01 33,102.38

Balance with Banks, Money at Call 42,438.27 51,067.00

Advances 586,646.58 512,395.29

Investments 207,732.68 202,994.18

Gross Block 7,931.43 7,903.51

Accumulated Depreciation 0.00 0.00

Net Block 7,931.43 7,903.51

Capital Work in Progress 0.00 0.00

Other Assets 81,852.17 71,726.80

Total Assets 964,459.14 879,189.16

Contingent Liabilities 1,971,430.27 865,409.07

Bills for collection 0.00 0.00

Book Value (Rs) 163.38 158.91

Interpretation: the above balance sheet of the icici bank showing that total share capital for the
year 2018 is greater than the share capital of the year 2017.and the assests of 2017 is greater
than the assests of 2018.why because the in the year 2017 investements and advances are more
than the year 2018.

Ratios of ICICI bank for the year 2018-2019:

Mar'19 Mar '18

Investment Valuation Ratios
Face Value 2.00 2.00
Dividend Per Share 1.00 1.50
Operating Profit Per Share (Rs) 15.05 12.61
Net Operating Profit Per Share (Rs) 98.35 85.51
Free Reserves Per Share (Rs) -- --
Bonus in Equity Capital 9.04 9.06
Profitability Ratios
Interest Spread 6.36 6.43
Adjusted Cash Margin(%) 5.31 10.44
Net Profit Margin 5.30 12.33
Return on Long Term Fund(%) 38.13 38.54
Return on Net Worth(%) 3.19 6.63
Adjusted Return on Net Worth(%) 3.19 6.63
Return on Assets Excluding Revaluations 163.38 158.91
Return on Assets Including Revaluations 168.10 163.59
Management Efficiency Ratios
Interest Income / Total Funds 6.90 6.68
Net Interest Income / Total Funds 2.94 2.80
Non Interest Income / Total Funds 1.58 2.12
Interest Expended / Total Funds 3.96 3.88
Operating Expense / Total Funds 1.88 1.81
Profit Before Provisions / Total Funds 2.55 3.01
Net Profit / Total Funds 0.37 0.82
Loans Turnover 0.12 0.11
Total Income / Capital Employed(%) 8.48 8.80
Interest Expended / Capital Employed(%) 3.96 3.88
Total Assets Turnover Ratios 0.07 0.07
Asset Turnover Ratio 0.07 0.07
Profit And Loss Account Ratios
Interest Expended / Interest Earned 57.39 58.11
Other Income / Total Income 18.63 24.07
Operating Expense / Total Income 22.22 20.62
Selling Distribution Cost Composition 1.14 0.73
Balance Sheet Ratios
Capital Adequacy Ratio 16.89 18.42
Advances / Loans Funds(%) 75.11 74.18
Debt Coverage Ratios
Credit Deposit Ratio 90.54 92.92
Investment Deposit Ratio 33.84 34.68
Cash Deposit Ratio 5.85 6.17
Total Debt to Owners Fund 7.77 7.28
Financial Charges Coverage Ratio 1.67 1.80
Financial Charges Coverage Ratio Post Tax 1.11 1.24
Leverage Ratios
Current Ratio 0.12 0.12
Quick Ratio 18.66 20.44
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 28.69 21.50
Dividend Payout Ratio Cash Profit 23.31 19.28
Earning Retention Ratio 71.31 78.50
Cash Earning Retention Ratio 76.69 80.72
AdjustedCash Flow Times 157.70 74.22
Interpretation:

Cash flows of icici bank:

Cash Flow - in Rs. Cr. -

Mar '19 Mar '18 Mar '17
12 mths 12 mths 12 mths
Net Profit Before Tax 3776.76 7434.56 11278.61
Net Cash From Operating Activities 38418.79 13303.65 39222.81
Net Cash (used in)/from
-23875.31 -38968.80 7045.42
Investing Activities

Net Cash (used in)/from Financing Activities -18251.09 34118.30 -30378.79

Net (decrease)/increase In Cash and Cash

-3873.09 8456.32 15844.32
Equivalents
Opening Cash & Cash Equivalents 84169.38 75713.06 59868.74
Closing Cash & Cash Equivalents 80296.29 84169.38 75713.06

Interpretation:
Mar 19 Mar 18
12 mths 12 mths
INCOME
Interest / Discount on Advances /
47,942.62 40,866.21
Bills
Income from Investments 12,796.88 11,568.17
Interest on Balance with RBI and
736.09 663.38
Other Inter-Bank funds
Others 1,925.60 1,868.14
Total Interest Earned 63,401.19 54,965.89
Other Income 14,512.16 17,419.63
Total Income 77,913.36 72,385.52
EXPENDITURE
Interest Expended 36,386.40 31,940.05
Payments to and Provisions for
6,808.24 5,913.95
Employees
Depreciation 776.91 780.74
Depreciation on Leased Assets 0.00 0.00
Operating Expenses (excludes
10,503.91 9,009.25
Employee Cost & Depreciation)
Total Operating Expenses 18,089.06 15,703.94
Provision Towards Income Tax 3,360.60 2,661.85
Provision Towards Deferred Tax -2,947.14 -2,004.72
Provision Towards Other Taxes 0.00 0.00
Other Provisions and
19,661.14 17,306.98
Contingencies
Total Provisions and
20,074.60 17,964.11
Contingencies
Total Expenditure 74,550.05 65,608.10
Net Profit / Loss for The Year 3,363.30 6,777.42
Net Profit / Loss After EI &
3,363.30 6,777.42
Prior Year Items
Profit / Loss Brought Forward 18,495.26 18,744.94
Total Profit / Loss available for
21,858.56 25,522.36
Appropriations
APPROPRIATIONS
Transfer To / From Statutory P&L a/c :
840.90 1,694.40
Reserve
Transfer To / From Reserve Fund 0.76 1.05
Transfer To / From Special
525.00 600.00
Reserve
Transfer To / From Capital
28.00 2,565.46
Reserve
Transfer To / From Investment
0.00 0.00
Reserve
Transfer To / From Revenue And
1,619.20 700.00
Other Reserves
Dividend and Dividend Tax for
0.00 0.00
The Previous Year
Equity Share Dividend 965.13 1,457.46
Tax On Dividend 0.00 8.73
Balance Carried Over To Balance
17,879.57 18,495.26
Sheet
Total Appropriations 21,858.56 25,522.36
OTHER INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 5.23 10.56
Diluted EPS (Rs.) 5.17 10.46
DIVIDEND PERCENTAGE
Equity Dividend Rate (%) 50.00 75.00
Interpretation:

Balance sheet :
Standalone Balance Sheet -------------- in Rs. Cr. ---------------
Mar 19 Mar 19 Mar 18 Mar 18
12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 1,294.14 1,289.46 1,285.81 1,285.81
Total Share Capital 1,294.14 1,289.46 1,285.81 1,285.81
Revaluation Reserve 0.00 3,044.51 3,003.19 3,003.19
Reserves and Surplus 107,073.91 104,029.40 100,864.37 100,864.37
Total Reserves and Surplus 107,073.91 107,073.91 103,867.56 103,867.56
Employees Stock Options 0.00 4.68 5.57 5.57
Total ShareHolders
108,368.05 108,368.04 105,158.94 105,158.94
Funds
Deposits 652,919.67 652,919.67 560,975.21 560,975.21
Borrowings 165,319.97 165,319.97 182,858.62 182,858.62
Other Liabilities and
37,851.46 37,851.46 30,196.40 30,196.40
Provisions
Total Capital and
964,459.15 964,459.15 879,189.16 879,189.16
Liabilities
ASSETS
Cash and Balances with
37,858.01 37,858.01 33,102.38 33,102.38
Reserve Bank of India
Balances with Banks
Money at Call and Short 42,438.28 42,438.27 51,067.00 51,067.00
Notice
Investments 207,732.68 207,732.68 202,994.18 202,994.18
Advances 586,646.58 586,646.58 512,395.29 512,395.29
Fixed Assets 7,931.43 7,931.43 7,903.51 7,903.51
Other Assets 81,852.17 81,852.17 71,726.80 71,726.80
Total Assets 964,459.15 964,459.15 879,189.16 879,189.16
OTHER ADDITIONAL
INFORMATION
Number of Branches 0.00 4,874.00 4,867.00 4,867.00
Number of Employees 0.00 86,763.00 81,548.00 82,724.00
Capital Adequacy Ratios
17.00 17.00 18.00 18.00
(%)
KEY PERFORMANCE
INDICATORS
Tier 1 (%) 0.00 15.00 16.00 16.00
Tier 2 (%) 0.00 2.00 3.00 3.00
ASSETS QUALITY
Gross NPA 46,291.63 45,676.04 53,240.18 53,240.18
Gross NPA (%) 7.00 7.00 10.00 0.00
Net NPA 13,577.43 13,449.72 27,823.56 27,823.56
Net NPA (%) 2.00 2.00 5.00 5.00
Net NPA To Advances (%) 0.00 2.00 5.00 5.00
CONTINGENT LIABILITIES,
COMMITMENTS
Bills for Collection 0.00 49,391.99 28,588.36 28,588.36
Contingent Liabilities 0.00 1,922,038.29 1,289,244.00 1,289,244.00

Interpretation :

Yes bank:(balance sheet)

Mar '18 Mar '17
particulars

12 mths 12 mths

Capital and Liabilities:

Total Share Capital 460.59 456.49
Equity Share Capital 460.59 456.49
Reserves 25,297.69 21,597.57
Net Worth 25,758.28 22,054.06
Deposits 200,738.15 142,873.86
Borrowings 74,893.58 38,606.67
Total Debt 275,631.73 181,480.53
Other Liabilities & Provisions 11,055.60 11,525.33
Total Liabilities 312,445.61 215,059.92
Mar '18 Mar '17

12 mths 12 mths

Assets
Cash & Balances with RBI 11,425.75 6,952.07
Balance with Banks, Money at Call 13,308.62 12,597.37
Advances 203,533.86 132,262.68
Investments 68,398.94 50,031.80
Gross Block 760.83 608.86
Net Block 760.83 608.86
Capital Work In Progress 71.56 74.67
Other Assets 14,946.04 12,532.46
Total Assets 312,445.60 215,059.91

Contingent Liabilities 583,765.20 380,954.16

Book Value (Rs) 111.85 483.13

Interpretation:
FIGURES IN RS CRORE 2019 2018

SHARE CAPITAL 463.01 460.59

RESERVES 26441.19 25297.69

TOTAL SHAREHOLDERS FUNDS 26904.20 25758.28

SECURED LOANS 108424.11 74893.58

UNSECURED LOANS 227610.19 200738.16

TOTAL DEBT 336034.30 275631.74

TOTAL LIABILITIES 362938.50 301390.02

GROSS BLOCK 1848.68 1561.08

CAPITAL WORK IN PROGRESS 49.98 71.56

INVESTMENTS 89522.03 68398.94

INVENTORIES 0.00 0.00

SUNDRY DEBTORS 0.00 0.00

CASH AND BANK 26889.51 24734.37

LOANS AND ADVANCES 263597.63 218479.91

TOTAL CURRENT ASSETS 290487.14 243214.28

CURRENT LIABILITIES 17887.68 11055.60

PROVISIONS 0.00 0.00

272599.46 232158.68
NET CURRENT ASSETS

MISCELLANEOUS EXPENSES NOT WRITTEN OFF 0.00 0.00

DEFERRED TAX ASSETS N/A N/A

DEFERRED TAX LIABILITY N/A N/A

NET DEFERRED TAX N/A N/A

OTHER ASSETS 22098.02 14946.04

TOTAL ASSETS 362938.49 301390.01

Financial overview:

Interpretation:

Cash flow:

FIGURES IN RS CRORE 2019 2018 2017

OPENING CASH & CASH EQUIVALENTS 24734.37 19549.44 8218.42

NET CASH FROM OPERATING ACTIVITIES -24661.17 -21877.72 4378.65

NET CASH USED IN/FROM INVESTING ACTIVITIES -6223.01 -8685.28 -4476.84

NET CASH USED IN/FROM FINANCING ACTIVITIES 33039.32 35747.92 11429.21

NET (DECREASE)/INCREASE IN CASH AND

2155.15 5184.92 11331.02
CASH EQUIVALENTS

CLOSING CASH & CASH EQUIVALENTS 26889.51 24734.37 19549.4

Interpretation:

Ratios of yes bank:

FIGURES IN RS CRORE 2019 2018 2017

NET INTEREST INCOME / TOTAL FUNDS 2.83 2.93 3.05

NON INTEREST INCOME / TOTAL FUNDS 1.32 1.98 2.19

TOTAL INCOME / CAPITAL EMPLOYED (%) 0.00 0.00 0.00

INTEREST EXPENDED / CAPITAL EMPLOYED (%) 0.00 0.00 0.00

OPERATING EXPENSE / TOTAL INCOME 18.03 20.15 20.00

INTEREST EXPENDED / TOTAL FUNDS 8.55 7.68 8.64

OPERATING EXPENSE / TOTAL FUNDS 5.72 4.75 5.59

PROFIT BEFORE PROVISIONS / TOTAL FUNDS 2.35 2.94 3.07

NET PROFIT / TOTAL FUNDS 0.50 1.60 1.75

INTEREST EXPENDED /INTEREST EARNED 66.89 61.83 64.70

OTHER INCOME / TOTAL INCOME 13.42 20.49 20.20

CREDIT DEPOSIT RATIO 103.90 97.73 90.53

INVESTMENT DEPOSIT RATIO 36.87 34.47 38.83

CASH DEPOSIT RATIO 5.19 5.35 5.00

ADVANCES / LOAN FUNDS (%) 0.00 0.00 0.00

Interpretation:
Profit and loss a/c of yes bank:

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 19 Mar 19 Mar 18 Mar 18 Mar 17

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Interest / Discount on Advances / Bills 47,942.62 47,942.62 40,866.21 40,866.21 39,603.39
Income from Investments 12,796.88 12,796.88 11,568.17 11,568.17 11,377.07
Interest on Balance with RBI and Other
736.09 736.09 663.38 663.38 495.46
Inter-Bank funds
Others 1,925.60 1,925.60 1,868.14 1,868.14 2,680.35
Total Interest Earned 63,401.19 63,401.19 54,965.89 54,965.89 54,156.28
Other Income 14,512.17 14,512.16 17,419.63 17,419.63 19,504.48
Total Income 77,913.36 77,913.36 72,385.52 72,385.52 73,660.76
EXPENDITURE
Interest Expended 36,386.40 36,386.40 31,940.05 31,940.05 32,418.96
Payments to and Provisions for Employees 6,808.24 6,808.24 5,913.95 5,913.95 5,733.71
Depreciation 0.00 776.91 780.74 780.74 757.65
Operating Expenses (excludes Employee
11,280.82 10,503.91 9,009.25 9,009.25 8,263.70
Cost & Depreciation)
Total Operating Expenses 18,089.06 18,089.06 15,703.94 15,703.94 14,755.06
Provision Towards Income Tax 413.46 3,360.60 2,661.85 2,661.85 2,180.12
Provision Towards Deferred Tax 0.00 -2,947.14 -2,004.72 -2,004.72 -702.60
Other Provisions and Contingencies 19,661.14 19,661.14 17,306.98 17,306.98 15,208.14
Total Provisions and Contingencies 20,074.60 20,074.60 17,964.11 17,964.11 16,685.66
Total Expenditure 74,550.06 74,550.05 65,608.10 65,608.10 63,859.67
Net Profit / Loss for The Year 3,363.30 3,363.30 6,777.42 6,777.42 9,801.09
Net Profit / Loss After EI & Prior Year
3,363.30 3,363.30 6,777.42 6,777.42 9,801.09
Items
Profit / Loss Brought Forward 0.00 18,495.26 18,744.94 18,744.94 17,132.19
Total Profit / Loss available for
0.00 21,858.56 25,522.36 25,522.36 26,933.28
Appropriations
APPROPRIATIONS
Transfer To / From Statutory Reserve 0.00 840.90 1,694.40 1,694.40 2,450.30
Transfer To / From Reserve Fund 0.00 0.76 1.05 1.05 0.98
Transfer To / From Special Reserve 0.00 525.00 600.00 600.00 450.00
Transfer To / From Capital Reserve 0.00 28.00 2,565.46 2,565.46 5,293.30
Transfer To / From Revenue And Other
0.00 1,619.20 700.00 700.00 0.00
Reserves
Equity Share Dividend 0.00 965.13 1,457.46 1,457.46 0.95
Tax On Dividend 0.00 0.00 8.73 8.73 -7.19
Balance Carried Over To Balance Sheet 0.00 17,879.57 18,495.26 18,495.26 18,744.94
Total Appropriations 0.00 21,858.56 25,522.36 25,522.36 26,933.28
OTHER INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 5.23 5.23 10.56 10.56 15.31
Diluted EPS (Rs.) 5.17 5.17 10.46 10.46 15.25
DIVIDEND PERCENTAGE
Equity Dividend Rate (%) 50.00 50.00 75.00 75.00 125.00

Interpretation:
Hdfc bank:(financial overview):

Balance sheet of hdfc bank:

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

Mar 19 Mar 19 Mar 18 Mar 18 Mar 17

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 544.66 544.66 519.02 519.02 512.51
Total Share Capital 544.66 544.66 519.02 519.02 512.51
Reserves and Surplus 148,661.66 148,661.69 105,775.98 105,775.98 88,949.84
Total Reserves and Surplus 148,661.66 148,661.69 105,775.98 105,775.98 88,949.84
Total ShareHolders Funds 149,206.32 149,206.35 106,295.00 106,295.00 89,462.35
Deposits 923,140.93 923,140.93 788,770.64 788,770.64 643,639.66
Borrowings 117,085.13 117,085.12 123,104.97 123,104.97 74,028.87
Other Liabilities and Provisions 55,108.33 55,108.29 45,763.72 45,763.72 56,709.32
Total Capital and Liabilities 1,244,540.71 1,244,540.69 1,063,934.32 1,063,934.32 863,840.19
ASSETS
Cash and Balances with Reserve Bank of
46,763.62 46,763.62 104,670.47 104,670.47 37,896.88
India
Balances with Banks Money at Call and
34,584.01 34,584.02 18,244.61 18,244.61 11,055.22
Short Notice
Investments 290,587.88 290,587.88 242,200.24 242,200.24 214,463.34
Advances 819,401.22 819,401.22 658,333.09 658,333.09 554,568.20
Fixed Assets 4,030.01 4,030.00 3,607.20 3,607.20 3,626.74
Other Assets 49,173.97 49,173.95 36,878.70 36,878.70 42,229.82
Total Assets 1,244,540.71 1,244,540.69 1,063,934.32 1,063,934.32 863,840.19
OTHER ADDITIONAL INFORMATION
Number of Branches 0.00 5,103.00 4,787.00 4,787.00 4,715.00
Number of Employees 0.00 98,061.00 88,253.00 88,253.00 84,325.00
Capital Adequacy Ratios (%) 17.00 17.00 15.00 15.00 15.00
KEY PERFORMANCE INDICATORS
Tier 1 (%) 0.00 16.00 13.00 13.00 13.00
Tier 2 (%) 0.00 1.00 2.00 2.00 2.00
ASSETS QUALITY
Gross NPA 11,224.16 11,224.16 8,606.97 8,606.97 5,885.66
Gross NPA (%) 1.00 1.00 1.00 1.00 1.00
Net NPA 3,214.52 3,214.52 2,601.02 2,601.02 1,843.99
Net NPA To Advances (%) 2.00 0.00 0.00 0.00 0.00
CONTINGENT LIABILITIES, COMMITMENTS
Bills for Collection 0.00 49,952.80 42,753.83 42,753.83 30,848.04
Contingent Liabilities 0.00 1,024,715.12 875,488.23 875,488.23 817,869.59

Interpretation:

Cash flow of hdfc bank:

Cash Flow ------------------- in Rs. Cr. -------------------

Mar 19 Mar 19 Mar 18 Mar 18 Mar 17

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit/Loss Before Extraordinary

0.00 32,199.66 26,697.30 26,697.30 22,139.08
Items And Tax
Net CashFlow From Operating Activities 0.00 -56,054.67 26,074.07 26,074.07 23,585.40
Net Cash Used In Investing Activities 0.00 -1,326.12 -533.10 -533.10 -1,956.25
Net Cash Used From Financing Activities 0.00 15,718.00 48,411.43 48,411.43 -11,567.63
Foreign Exchange Gains / Losses 0.00 95.35 10.59 10.59 -28.26
Net Inc/Dec In Cash And Cash
0.00 -41,567.44 73,962.99 73,962.99 10,033.26
Equivalents
Cash And Cash Equivalents Begin of Year 0.00 122,915.08 48,952.10 48,952.10 38,918.84
Cash And Cash Equivalents End Of Year 0.00 81,347.64 122,915.08 122,915.08 48,952.10
Interpretation:

Financial ratios:

Mar
Mar '18 Mar '17 Mar '16 Mar '15
'19

Investment Valuation Ratios

Face Value 2.00 2.00 2.00 2.00 2.00
Dividend Per Share -- -- -- -- --
Operating Profit Per Share (Rs) 161.28 138.73 110.21 91.80 75.91
Net Operating Profit Per Share (Rs) 386.15 328.65 285.93 249.83 202.14
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital -- -- -- -- --
Profitability Ratios
Interest Spread 7.12 7.70 7.38 7.45 7.86
Adjusted Cash Margin(%) 34.33 35.11 33.72 33.30 34.75
Net Profit Margin 21.23 21.70 20.81 20.26 21.09
Return on Long Term Fund(%) 69.61 79.29 80.92 87.19 83.78
Return on Net Worth(%) 14.53 16.88 16.61 17.22 16.92
Adjusted Return on Net Worth(%) 26.93 31.58 30.68 32.33 32.05
Return on Assets Excluding Revaluations 566.13 423.71 359.35 294.62 252.61
Return on Assets Including Revaluations 566.13 423.71 359.35 294.62 252.61
Management Efficiency Ratios
Interest Income / Total Funds 8.78 8.55 9.03 9.45 9.13
Net Interest Income / Total Funds 4.30 4.30 4.34 4.35 4.21
Non Interest Income / Total Funds 1.58 1.61 1.59 1.68 1.72
Interest Expended / Total Funds 4.49 4.25 4.69 5.10 4.92
Operating Expense / Total Funds 2.21 2.30 2.45 2.56 2.50
Profit Before Provisions / Total Funds 3.57 3.51 3.37 3.36 3.30
Net Profit / Total Funds 1.87 1.86 1.88 1.92 1.93
Loans Turnover 0.13 0.13 0.14 0.15 0.15
Total Income / Capital Employed(%) 10.36 10.16 10.62 11.13 10.85
Interest Expended / Capital Employed(%) 4.49 4.25 4.69 5.10 4.92
Total Assets Turnover Ratios 0.09 0.09 0.09 0.09 0.09
Asset Turnover Ratio 0.09 0.09 0.10 0.10 0.10
Profit And Loss Account Ratios
Interest Expended / Interest Earned 51.08 49.69 51.92 53.94 53.86
Other Income / Total Income 15.27 15.84 14.95 15.07 15.85
Operating Expense / Total Income 21.33 22.66 23.06 22.98 23.08
Selling Distribution Cost Composition 0.15 0.20 0.20 0.40 --
Balance Sheet Ratios
Capital Adequacy Ratio -- -- -- -- --
Advances / Loans Funds(%) 85.85 83.02 86.15 86.45 82.77
Debt Coverage Ratios
Credit Deposit Ratio 91.72 89.80 90.22 87.41 85.50
Investment Deposit Ratio 30.71 31.38 31.33 32.72 34.73
Cash Deposit Ratio 8.85 9.96 5.72 5.78 6.47
Total Debt to Owners Fund 7.03 8.62 8.08 8.31 8.07
Financial Charges Coverage Ratio 2.17 2.23 2.08 2.01 2.05
Financial Charges Coverage Ratio Post
1.44 1.46 1.42 1.40 1.42
Tax
Leverage Ratios
Current Ratio 0.05 0.05 0.06 0.07 0.04
Quick Ratio 16.55 17.40 11.35 14.58 12.66
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 18.34 0.27 0.16 22.76 22.73
Dividend Payout Ratio Cash Profit 17.39 0.26 0.15 21.52 21.37
Earning Retention Ratio 90.11 99.86 99.91 87.88 88.00
Cash Earning Retention Ratio 90.39 99.86 99.92 88.24 88.39
AdjustedCash Flow Times 21.65 22.16 22.14 22.04 21.52

Interpretation:
Profit and loss a/c :

Consolidated Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar '19 Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Interest Earned 105,160.74 85,287.84 73,271.35 63,161.56 50,666.49
Other Income 18,947.05 16,056.60 12,877.63 11,211.65 9,545.68
Total Income 124,107.79 101,344.44 86,148.98 74,373.21 60,212.17
Expenditure
Interest expended 53,712.69 42,381.48 38,041.58 34,069.57 27,288.46
Employee Cost 10,451.15 9,193.90 8,504.70 6,306.14 5,162.68
Selling, Admin & Misc Expenses 36,277.68 30,241.44 23,429.11 20,442.14 16,380.55
Depreciation 1,220.67 966.78 886.19 738.03 680.45
Operating Expenses 27,694.77 23,927.22 20,751.07 17,831.88 14,577.53
Provisions & Contingencies 20,254.73 16,474.90 12,068.93 9,654.43 7,646.15
Total Expenses 101,662.19 82,783.60 70,861.58 61,555.88 49,512.14
Mar '19 Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 22,445.61 18,560.84 15,287.40 12,817.33 10,700.05
Minority Interest 113.18 51.34 36.72 19.72 14.41
Share Of P/L Of Associates 0.00 -0.52 -2.34 -3.73 -3.25
Net P/L After Minority Interest & Share Of
22,332.43 18,510.02 15,253.03 12,801.33 10,688.89
Associates
Profit brought forward 43,098.98 34,532.33 24,853.04 19,550.86 15,207.47
Total 65,544.59 53,093.17 40,140.44 32,368.19 25,907.52
Equity Dividend 4,052.59 0.00 0.00 2,401.78 2,005.20
Corporate Dividend Tax 43.31 50.77 25.60 512.35 424.54
Per share data (annualised)
Earning Per Share (Rs) 82.42 71.52 59.66 50.70 42.69
Book Value (Rs) 564.29 422.33 358.21 293.90 251.96
Appropriations
Transfer to Statutory Reserves 6,378.10 8,143.93 4,093.18 3,382.86 2,877.17
Transfer to Other Reserves 2,107.81 1,748.67 1,454.96 1,229.62 1,038.58
Proposed Dividend/Transfer to Govt 4,095.90 50.77 25.60 2,914.13 2,429.74
Balance c/f to Balance Sheet 52,849.61 43,098.98 34,532.33 24,825.59 19,550.86
Total 65,431.42 53,042.35 40,106.07 32,352.20 25,896.35

Interpretation:

Axis bank:
Balance sheet of axis bank:

Balance Sheet of Axis Bank ------------------- in Rs. Cr. -------------------

Mar '19 Mar '18 Mar '17

12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 514.33 513.31 479.01

Equity Share Capital 514.33 513.31 479.01

Reserves 66,161.97 62,931.95 55,283.53

Net Worth 66,676.30 63,445.26 55,762.54

Deposits 548,471.34 453,622.72 414,378.79

Borrowings 152,775.78 148,016.14 105,030.87

Total Debt 701,247.12 601,638.86 519,409.66

Other Liabilities & Provisions 33,073.12 26,245.45 26,295.47

Total Liabilities 800,996.54 691,329.57 601,467.67

Mar '19 Mar '18 Mar '17

12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 35,099.03 35,481.06 30,857.94

Balance with Banks, Money at Call 32,105.60 7,973.83 19,398.24

Advances 494,797.97 439,650.30 373,069.35

Investments 174,969.28 153,876.08 128,793.37

Gross Block 3,763.94 3,625.59 3,465.93

Net Block 3,763.94 3,625.59 3,465.93

Capital Work In Progress 272.69 346.09 280.96

Other Assets 59,988.01 50,376.62 45,601.87

Total Assets 800,996.52 691,329.57 601,467.66

Contingent Liabilities 807,738.13 776,181.32 745,923.22

Book Value (Rs) 259.27 247.20 232.83

Interpretation:

Cash flow :

Mar 19 Mar 18 Mar 18 Mar 17

Mar 19

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit/Loss Before Extraordinary

6,974.09 0.00 121.57 121.57 5,467.56
Items And Tax
Net CashFlow From Operating Activities 37,566.92 0.00 -46,693.30 -46,693.30 34,192.28
Net Cash Used In Investing Activities -18,736.52 0.00 -10,500.31 -10,500.31 -12,630.39
Net Cash Used From Financing Activities 4,931.34 0.00 50,400.78 50,400.78 -4,628.87
Foreign Exchange Gains / Losses -12.00 0.00 -8.47 -8.47 -2.28
Net Inc/Dec In Cash And Cash
23,749.74 0.00 -6,801.29 -6,801.29 16,930.74
Equivalents
Cash And Cash Equivalents Begin of Year 43,454.89 0.00 50,256.18 50,256.18 33,325.44
Cash And Cash Equivalents End Of Year 67,204.64 0.00 43,454.89 43,454.89 50,256.18

Interpretation:

Financial ratios:

Key Financial Ratios ------------------- in Rs. Cr. -------------------

Mar
Mar '18 Mar '17 Mar '16 Mar '15
'19

Investment Valuation Ratios

Face Value 2.00 2.00 2.00 2.00 2.00
Dividend Per Share 1.00 -- 5.00 5.00 4.60
Operating Profit Per Share (Rs) 25.60 20.24 26.73 30.12 22.89
Net Operating Profit Per Share (Rs) 213.82 178.37 185.98 172.01 149.67
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital -- -- -- -- --
Profitability Ratios
Interest Spread 6.37 5.90 6.84 6.81 7.34
Adjusted Cash Margin(%) 7.90 1.48 7.44 17.21 17.70
Net Profit Margin 8.50 0.60 8.26 20.06 20.73
Return on Long Term Fund(%) 60.36 43.00 57.23 68.74 72.32
Return on Net Worth(%) 7.01 0.43 6.59 15.46 16.46
Adjusted Return on Net Worth(%) 7.01 0.43 6.59 15.46 16.46
Return on Assets Excluding
259.27 247.20 232.83 223.12 188.47
Revaluations
Return on Assets Including
259.27 247.20 232.83 223.12 188.47
Revaluations
Management Efficiency Ratios
Interest Income / Total Funds 7.37 7.08 7.91 8.30 8.40
Net Interest Income / Total Funds 2.91 2.88 3.21 3.41 3.37
Non Interest Income / Total Funds 1.76 1.70 2.07 1.90 1.98
Interest Expended / Total Funds 4.46 4.20 4.69 4.89 5.03
Operating Expense / Total Funds 2.03 2.08 2.07 1.96 2.08
Profit Before Provisions / Total
2.55 2.41 3.12 3.26 3.17
Funds
Net Profit / Total Funds 0.63 0.04 0.65 1.67 1.74
Loans Turnover 0.12 0.11 0.13 0.13 0.14
Total Income / Capital
9.13 8.78 9.98 10.20 10.38
Employed(%)
Interest Expended / Capital
4.46 4.20 4.69 4.89 5.03
Employed(%)
Total Assets Turnover Ratios 0.07 0.07 0.08 0.08 0.08
Asset Turnover Ratio 0.08 0.07 0.08 0.09 0.09
Profit And Loss Account Ratios
Interest Expended / Interest Earned 60.52 59.33 59.38 58.93 59.91
Other Income / Total Income 19.28 19.33 20.79 18.61 19.08
Operating Expense / Total Income 22.20 23.65 20.79 19.18 20.07
Selling Distribution Cost
0.18 0.33 0.29 0.21 --
Composition
Balance Sheet Ratios
Capital Adequacy Ratio 15.84 16.57 14.95 15.29 15.09
Advances / Loans Funds(%) 75.95 78.44 76.40 78.84 76.65
Debt Coverage Ratios
Credit Deposit Ratio 93.25 93.63 92.17 91.10 84.71
Investment Deposit Ratio 32.82 32.57 32.47 37.38 40.75
Cash Deposit Ratio 7.04 7.64 6.89 6.20 6.11
Total Debt to Owners Fund 10.52 9.48 9.31 8.60 9.00
Financial Charges Coverage Ratio 1.59 1.60 1.68 1.69 1.65
Financial Charges Coverage Ratio
1.16 1.03 1.16 1.36 1.37
Post Tax
Leverage Ratios
Current Ratio 0.10 0.10 0.10 0.07 0.03
Quick Ratio 17.84 20.02 17.10 25.74 20.64
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit -- 509.74 38.25 14.48 14.78
Dividend Payout Ratio Cash Profit -- 166.54 33.60 13.74 14.00
Earning Retention Ratio 100.00 -409.74 61.75 85.52 85.22
Cash Earning Retention Ratio 100.00 -66.54 66.40 86.26 86.00
AdjustedCash Flow Times 101.83 537.61 98.94 41.30 41.53

Interpretation:
P&L a/c :

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 19 Mar 18 Mar 17 Mar 16 Mar 15

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Interest / Discount on Advances / Bills 41,322.02 34,137.47 33,124.96 30,040.56 25,867.82
Income from Investments 11,349.07 9,983.30 9,622.82 9,377.59 9,117.09
Interest on Balance with RBI and Other
693.35 387.83 503.84 295.25 231.26
Inter-Bank funds
Others 1,621.33 1,271.71 1,290.54 1,274.64 262.43
Total Interest Earned 54,985.77 45,780.31 44,542.16 40,988.04 35,478.60
Other Income 13,130.34 10,967.09 11,691.31 9,371.46 8,365.05
Total Income 68,116.11 56,747.40 56,233.47 50,359.50 43,843.64
EXPENDITURE
Interest Expended 33,277.60 27,162.58 26,449.04 24,155.07 21,254.46
Payments to and Provisions for Employees 4,747.32 4,312.96 3,891.86 3,376.01 3,114.97
Depreciation 709.72 568.10 508.80 443.91 405.67
Operating Expenses (excludes Employee
10,376.36 9,109.29 7,799.24 6,280.90 5,683.10
Cost & Depreciation)
Total Operating Expenses 15,833.41 13,990.34 12,199.91 10,100.82 9,203.75
Provision Towards Income Tax 3,009.84 1,671.19 4,988.90 4,241.96 3,852.37
Provision Towards Deferred Tax -712.36 -182.53 -3,200.62 -71.87 -153.36
Provision Towards Other Taxes 0.00 0.00 0.00 -0.05 0.93
Other Provisions and Contingencies 12,031.02 13,830.14 12,116.96 3,709.91 2,327.68
Total Provisions and Contingencies 14,328.50 15,318.80 13,905.24 7,879.95 6,027.62
Total Expenditure 63,439.50 56,471.72 52,554.19 42,135.84 36,485.82
Net Profit / Loss for The Year 4,676.61 275.68 3,679.28 8,223.66 7,357.82
Net Profit / Loss After EI & Prior Year
4,676.61 275.68 3,679.28 8,223.66 7,357.82
Items
Profit / Loss Brought Forward 23,043.05 24,448.33 23,766.46 17,623.49 13,501.45
Total Profit / Loss available for
27,719.66 24,724.01 27,445.74 25,847.15 20,859.27
Appropriations
APPROPRIATIONS
Transfer To / From Statutory Reserve 1,169.15 68.92 919.82 2,055.92 1,839.46
Transfer To / From Reserve Fund 0.63 1.62 1.75 1.74 -1.27
Transfer To / From Capital Reserve 125.09 101.66 755.57 62.04 63.14
Transfer To / From Investment Reserve 496.51 103.49 -87.17 -41.81 25.49
Equity Share Dividend 0.00 1,405.28 1,197.52 1,191.42 1,087.54
Tax On Dividend 0.00 0.00 209.91 213.19 221.42
Balance Carried Over To Balance Sheet 25,928.28 23,043.05 24,448.33 22,364.65 17,623.49
Total Appropriations 27,719.66 24,724.01 27,445.74 25,847.15 20,859.27
OTHER INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 18.20 1.13 15.40 34.59 31.00
Diluted EPS (Rs.) 18.09 1.12 15.34 34.40 31.00
DIVIDEND PERCENTAGE
Equity Dividend Rate (%) 50.00 0.00 250.00 250.00 230.00

Interpretation: