financial implications of icici bank

8/8/2019 Financial Implications of ICICI Bank

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Financial implications of ICICI Bank:

INTRODUCTION

In general, ICICI Bank, is the Indias largest mortgage and savings provider and thenumber one provider of new investment products and the banking group is one of theIndia leading general insurers and had the reputation for excellence in the provision of business banking and corporate finance, delivering innovative funding solutions acrossa wide range of finance markets. The bank does provide retail, business and corporatebanking, and insurance and investment services through its multi-brand strategy and

internationally and has the biggest private shareholder base in the India.

A IMS/OBJECTIVES

There can be such aim of understanding as well as executing of such ideal financialimplications that may provide such link to the fair value accounting as there were certainfinance issues involve that, the ICICI Bank, bank regulators need to consider if fair value

accounting is used for determining bank regulatory capital and when making regulatorydecisions. In financial reporting, the international accounting standard setters haveissued several disclosure and measurement and recognition standards for financialinstruments and all indications are that both standard setters will mandate recognition of all financial instruments at fair value.

Furthermore, in order to help identify important financial implication issues for ICICIBank, the following study objectives are necessary:

1. To briefly review capital market studies that examine the usefulness of fair valueaccounting to investors and discuss market implementation issues of determiningfinancial instruments' fair values


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2 . To know critical financial considerations such as, bank regulators need toconsider how to let managers reveal private information in their fair valueestimates while minimizing strategic manipulation of model inputs to manageincome and regulatory capital

3. To investigate it is to best minimize measurement error in fair values to maximizetheir usefulness to investors and creditors when making investment decisions,and

4. To ensure bank managers have incentives to select investments that maximizeeconomic efficiency of the banking system

5. Application of such possible cross-country institutional differences are likely toplay an important role in determining the effectiveness of using mark-to-marketaccounting for financial reporting and bank regulation

Thus, banks financial reforms should pursue measures that would:

- increase national saving and investment and further reduction of fiscal deficitsand debt

- increase the supply and efficient utilization of labor

- ensure the efficient allocation of savings both within and across borders asstrengthening the financial infrastructure, encouraging financial transparency,enhancing financial supervision and eliminating barriers to international capitalflows

OVERVIEW OF REL A TED LITER A TURE

During 2005 the counterparty limit with UK banks was raised to 40 million. Theobjective of this move was to secure a more balanced portfolio between the UK Bankand non-UK Bank sectors and this continues to be achieved with similar balances for each sector. The call money sector represents instant access funds held with ICICIBank and the Group. The average return in excess of base rate on these accounts


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has been attractive and high balances have been maintained. However with fixed termmaturity deposits giving a higher yield as interest rate rises are predicted call moneybalances have been reduced to 13% of the portfolio, from 25% in 2004).

These lower balances still maintain sufficient liquidity to cover short-term cash flowrequirements. The labor market flexibility is an asset to bank and one of the reasonswhy major financial services companies and other businesses choose to invest in thecountry. There is an increasing trend among businesses not to take set of holidayssince observing these undermines smooth international business operations thatmaybe an issue for ICICI Bank in terms of the financial services industry. Thus,attempts to force businesses in Scotland to close on particular day would reduce

business flexibility and competitiveness as such factors should be carefully consideredbefore any steps are taken that could potentially undermine Scotlandscompetitiveness as good business location.

METHODOLOGY

The methodology that can be most appropriate for this study is by using case study

investigation for data analysis, findings and interpretations that is directly linked to the

ICICI Bank, resources such as through latest updaters of the ICICI Bank bank financialreports as well as press releases and online information found within the bankscompany website. Aside, several quantitative research techniques are to be utilized inorder to arrive at better conclusions and useful recommendations. Indeed, quantitativeapproach is much useful as it helps the researcher to prevent bias in gathering andpresenting research information and evidences.

Quantitative data collection procedures create epistemological postulations that realityis objective which can only be realized by means of transcending individual perspective.This phenomenon in turn should be discussed or explained by means of data analysisgathered through objective forms of measurement. The quantitative data gatheringmethods are useful especially when a study needs to measure the perception of therespondents regarding the topic. The purpose of the quantitative approach is to avoidsubjectivity by means of collecting and exploring information which describes the


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experience being studied (Cited from, Gall, Gall and Borg, 2003). The measures used inthis study are to be developed through an extensive literature review.

REFERENCE

Gall, M. D., Gall, J. P., & Borg, W. R. (2003). Educational Research: AnIntroduction (7th Ed.). Boston: Allyn & Bacon

financial implications of icici bank

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