A STUDY ON FINANCIAL PERFORMANCE ANALYSIS OF ICICI BANK

Abstract

The banking sector serves as the backbone of any economy, and the financial performance of commercial banks directly influences credit availability, monetary transmission, and overall economic growth. ICICI Bank Limited, India's largest private sector bank by total assets, presents a compelling case study in financial performance evolution, having navigated the dual challenges of asset quality stress and digital transformation over the past decade. This study conducts a comprehensive financial performance analysis of ICICI Bank over the five-year period FY 2018–19 to FY 2022–23, employing a multidimensional analytical framework encompassing profitability ratios, liquidity ratios, asset quality indicators, capital adequacy assessment, and efficiency metrics. Secondary data sourced from ICICI Bank Annual Reports, RBI regulatory returns, and NSE disclosures forms the empirical basis of the analysis. Key findings reveal a sustained improvement trajectory across all performance dimensions: net interest margin expanded from 3.17% in FY19 to 4.09% in FY23; gross NPA ratio declined sharply from 6.70% to 2.48% over the same period, reflecting disciplined credit risk management; return on assets improved from 0.39% to 2.35%; and capital adequacy remained comfortably above regulatory minimums throughout. The study concludes that ICICI Bank's financial performance improvement is attributable to a convergence of strategic credit portfolio repositioning, digital banking-driven cost efficiency gains,and Macroeconomic tailwinds from India's post-pandemic economic recovery.