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This report has been prepared in fulfillment of the requirement for paper of Competitor in the
course module of III term of PGDM batch of IILM-CMS. The primary objective of this report is
to analyze the Indian Banking Industry.
The group member hereby wishes to express their heartiest gratitude towards all those
people who have helped in the preparation of this report. At first, the member owes their special
thanks to all the faculties of IILM-CMS & IILM-GSM who have imparted with their general
knowledge about different subject matter which helped us to build the foundation for analyzing
the information. Along with this, the member would like to express their special thanks to Prof.
Vivek Bajpai & Dr. Mayank Dhaundiyal for providing the guide without whose support and
guidance the report writing would be impossible.
Last but not the least, the group member also express their thanks to their friends, family
of IILM-CMS and IILM-GSM for maintaining such a environment and helping us procure the
data without which this report writing would have been hardly possible.
AXIS BANK
Axis bank limited is a Indian financial services firm headquartered in Mumbai,Maharastra.It has
began its operations in 1994,after Indian gov. allowed private banks to be established. The Bank
was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of
India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd.,
National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance
Corporation and United India Insurance Company. The Bank, as on 31 March 2012, is
capitalized to the extent of Rest. 4.132 billion with the public holding (other than promoters and
GDRs) at 54.08%.The chairman is Adarsh Kishore,MD and CEO is Sikha Sharma.
Business focus
International Branches
Hong Kong
Singapore
Abu Dhabi
Dubai
Shanghai
Colombo
Axis Bank has set up a Trust – the Axis Bank Foundation, which contributes up to 1 percent of
its net profit annually to various social initiatives undertaken by the foundation. During the year
2011-12, the foundation has partnered with 36 NGOs for educating over a lakh underprivileged
and special kids in 13 states. The recycling initiative under the Green Banking banner has helped
the bank productively use around 21572 kilograms of dry waste during the year.
BALANCE SHEET AS ON 31.03.2012
RATIO ANALYSIS
Profitability Ratio Axis Bank HDFC Bank Kotak Mahindra SBI Bank
Net Profit Margin 15.51% 15.93% 15.39% 9.73%
Return on Net Worth 18.59% 17.26% 13.59% 13.94%
INVESTMENT
VALUATION RATIO
Face value 10 2 5 10
Dividend Per Share 16 4.30 0.60 35
Net Operating Profit per 654.06 138.66 94.94 1776.47
Share
MANAGEMENT
EFFICIENCY RATIO
Asset Turnover Ratio 0.11 0.12 0.13 0.1
Total Asset turnover 0.10 0.11 0.12 0.09
ratio
BALANCE SHEET
RATIO
Capital Adequacy Ratio 13.66 16.52 17.52 13.86
LEVERAGE RATIO
Current ratio 0.03 .08 0.05 0.05
Quick ratio 21.63 6.20 16.85 12.05
CASH FLOW
INDICATOR RATIO
Dividend payout 18.15 22.69 4.76 22.59
ratio(Net Profit)
Earning Retention ratio 81.77 77.30 95.24 77.45
EPS 102.67 22.02 14.65 174.15
ANALYSIS
Comparison between 2010-11 & 2011-12 year balance sheet of Axis Bank
Total balance sheet amount increases from 2,427,133,716 to 2,856,277,934 by 17.68% growth
from the previous year.
Borrowings increases from 262,678,824 to 340,716,721 by 29.7% growth as compared to last
year.
Investment increases from 719,916,208 to 931,920,859 by 29.44% growth as compared to
previous year.
Reserve & surplus increases by 20.48% from 185,882,797 to 223,953,384.
Interest earned increases from 151,548,058 to 219,946,474 by 45% as compared to last year.
Subsequently interest expenditure increases from 85,918,230 to 139,769,024 by 63% as
compared to last year.
Net profit increases from 33,884,906 to 42,422,054 by 25.19% as compared to previous year.
Earning per equity share increases from 82.95 to 102.94 by 24% growth as compared to previous
year.
Cash & balance with RBI decreases from 138,861,630 to 107,029,214 by 23% as compared to
last year. Subsequently balance with bank decreases from 75,224,929 to 32,309,943 by 57% as
compared to last year.
So we can say that Axis bank grow by 17.68% with increase in EPS by 24% as compared to last
year, so Axis bank will grow in near future. Share holders will invest money because they get more
EPS.
When we compare axis bank with other banks, we find various facts which are as follows:-
HDFC 16.63%
ICICI 16.40%
Compare with EPS
When we compare EPS of Axis bank with ICICI bank at face value Rs 10/share, the basic EPS
of ICICI bank is 56.11& the basic EPS of Axis bank is 102.94. so it will attract the share holders
to invest money in Axis bank to get more returns, but there is a negative aspect also that when
we compare EPS growth rate of HDFC bank with Axis bank, HDFC bank growth rate is 30%
from the last year whereas Axis bank EPS growth is 24% but when we compare with Kotak bank
the growth rate of EPS is 14.17%.
The basic EPS of Kotak bank increases from 21.73 to 24.81 by 14.17% growth ,but when we
compared it with Axis bank, the EPS growth rate is higher than kotak Mahindra bank. So it will
help in attracting the new share holders & helps in building the good will.
Net profit of Kotak Mahindra bank increases by 17.92% whereas net profit of Axis bank
increased by 25.19%. So it will help the share holders in getting more EPS but there is a
negative aspect also when we compare Axis bank with SBI, the net profit growth rate of SBI
bank is 41.65%.
Interest earned increased by 45% of Axis bank but when we compare it with SBI, the interest
earned growth rate is 30.87% whereas interest earned growth rate of Kotak bank is 41%.
Reserve & surplus growth rate of Kotak bank is 18.2% whereas in Axis bank growth rate is
20.48% but when we compare it with SBI the growth rate is 29.41%.
The growth rate of interest expenditure are-
SBI 29.31%
The quick ratio of SBI bank is 12.05 whereas the quick ratio of Axis bank is 21.63. It implies
that higher the quick ratio better the position of the company.
Dividend payout ratio of Axis bank is 18.15 whereas the dividend payout ratio of kotak bank
is 4.76. It implies that more matured company tend to have a higher payout ratio.
The return on net worth of Axis bank is 18.59% whereas the return on net worth of SBI &
HDFC bank is 13.94%, 17.26% resp. It implies that higher the return on net worth is good for
the bank.
The total asset turnover ratio of Axis bank is 0.10 whereas of SBI & HDFC is 0.09 & 0.11
resp. It implies that higher the total asset turnover ratio better for the bank.
The capital adequacy of Axis Bank is 13.66% whereas of SBI &HDFC is 13.86% & 16.52%