REPORT

ON

SUBMITTED TO:- SUBMITTED BY:

Mr. VIVEK BAJPAI PANKAJ KUMAR GUPTA
Mr. MAYANK DHAUNDIYAL PARAS GUPTA
PARTHA ROY
MITHUN BISWAS
PINKY
 ACKNOWLEDGEMENT

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

Axis bank focuses in four segments:Treasury operation,retail banking,corporate or wholesale

banking and other businesses.

International Branches

 Hong Kong
 Singapore
 Abu Dhabi
 Dubai
 Shanghai
 Colombo

Awards and recognition

 Bank of the Year – India The Banker Awards 2011

 Best Bank - Private Sector NDTV Profit Business Leadership Awards
 Best Bank 2011 Outlook Money
 Brand Excellence Award 2011 (BFSI) StarNews
 The Most Consistent Large Bank Best Banks-2011 Survey by Business Today and
KPMG
  Most Preferred Bank Amongst Retail Customers CLSA survey on personal banking
trends
 Most Productive Private Sector Bank FIBAC 2011 Banking Awards
 3rd Strongest Bank in Asia-Pacific Region Asian Banker

Corporate social responsibility

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

BANK AXIS HDFC KOTAK SBI

MAHINDRA
CAPITAL &
LIABILITIES
Capital 4,132,039 4,693,377 3,703,448 6,710,448
Reserve & 223,953,384 294,550,358 75,755,942 832,801,610
surplus
Deposits 2,201,043,033 2,467,064,459 385,365,206 10,436,473,623
Borrowings 340,716,721 238,465,086 165,955,205 1,270,055,680
Other liabilities 86,432,757 374,318,690 25,536,724 809,150,946
& provision
Employee stock - 3020 348,207 -
option
Minority Interest - - - -
Total 2,856,277,934 3,379,094,990 656,664,732 13,355,192,307
ASSETS
Cash & balance 107,029,214 149,910,945 20,164,945 540,759,386
with RBI
Balance with 32,309,943 59,466,318 6,180,601 430,872,263
bank & money at
call & short
notice
Investment 931,920,859 974,829,094 215,668,123 3,121,976,103
Advance 1,697,595,386 1,954,200,292 390,792,322 8,675,788,901
Fixed assets 22,593,250 23,471,940 4,499,658 54,665,492
Other assets 64,829,282 217,216,401 19,359,083 531,130,162
Total 2,856,277,934 3,379,094,990 656,664,732 13,355,192,307

CONTINGENT 4,802,373,747 8,652,928,262 384,758,617 8,326,053,343

LIABILITIES
BILL FOR 346,346,043 186,924,956 15,766,592 669,598,500
COLLECTION
PROFIT &LOSS ACCOUNT FOR THE YEAR ENDING 31st MARCH 2012

AXIS BANK KOTAK BANK HDFC BANK SBI BANK

INCOME:
Interest earned 219,946,474 61,802,362 272863517 1065214534
Other income 54,202,163 9,773,458 52436949 143514457
TOTAL 274,148,637 71,575,820 325300466 1208728991
EXPENDITURE
Interest expended 139,769,024 36,677,460 149895780 632303687
Operating expenses 60,070,995 18,348,299 85900571 260689921
Provisions and 31,886,564 5,699,531 37833208 198662497
contingencies
TOTAL 231,726,583 60,725,290 273629559 1091656105
NET PROFIT FOR 42,422,054 10,850,530 51,670,907 117072886
THE YEAR (I - II)
Balance in Profit & 49,697,707 14,945,189 61,742,416 3393
Loss Account brought
forward
from previous year
Profit & Loss balance 57115
of e-SBI Commercial
&
International Bank
Ltd. transferred on
amalgamation
AMOUNT 92,119,761 25,795,719 113413323 117133394
AVAILABLE FOR
APPROPRIATION
APPROPRIATIONS
:
Transfer to Statutory 10,605,513 2,712,700 12917726 35169772
Reserve
Transfer to/(from) 145,200 (416937)
Investment Reserve
Transfer to Capital 519,047 200 - 143769
Reserve
Transfer to General 792,600 5167091 55364960
Reserve/special
reserve
Proposed dividend 7,700,725 517,107 11748973 26451500
(includes tax on
dividend)
Balance in Profit & 73,294,476 21,627,912 83996470 3393
Loss Account carried
forward
TOTAL 92,119,761 25,795,719 113413323 117133394
EARNINGS PER 10 5 2 10
EQUITY
SHARE/face value
Basic 102.94 14.69 22.11 184.31
Last year basic 82.95 11.35 17.00 130.16

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.

Comparison with other banks

When we compare axis bank with other banks, we find various facts which are as follows:-

 Increase in net interest income

Axis bank 22.17%

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%

AXIS BANK 62%

HDFC BANK 60%

KOTAK BANK 70%

This implies that private sector banks takes more loans.

RATIO ANALYSIS

 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%