Study on Capital Structure Analysis of ICICI Bank Limited

Abstract

The capital structure means managing the debt and equity capital of the company. It allows a company to understand what type of funding the company uses to finance its overall activities and growth. It is therefore important to take decision regarding fixing the level of debt and equity. The paper examines the impact of capital structure on the performance of the company. In order to evaluate the capital structure of ICICI Bank Limited, a study had been conducted with the help of secondary data for the period of 5 Years (i.e. 2013 to 2018). Generally the performance is measured through financial tools such as, ratio analysis and leverage. The ratios and leverages are the most significant and reliable indicators to evaluate the financial performance of a company. By analyzing financial performance of the company it helps management in financial decision making. There are various determinants which affect the decision making of capital structure like cost of capital, control and flexibility. Consequently, decision regarding capital structure is critical decision which should be taken by all businesses. Hence, Future of the business is depends on positive and negative effects of this capital structure decision.