AXIS BANK PERFORMANCE ANALYSIS

PROFITABILITY ANALYSIS Mar-16

1 Total Assets 5,463,866,133.00

2 Earning Assets
Balances with RBI 223,611,562
Balances with Banks in Deposit Accounts
Balances with Banks & money at Call & Short Notice 113,416,529
Balances with Banks Outside India
Investments + 1,313,986,431
Advances + 3,446,633,156
Fixed Assets 35,737,637
Other Assets 330,480,818
Total Earning Assets 5,097,647,678

3 Interest bearing Liabilities

Saving Deposits 1,057,934,225
Term & Other Deposits 2,525,087,707
Borrowings 1,138,477,320
Subordinated Debt
Total Interest bearing liabilities 4,721,499,252.00
Other Liabilities 206,779,304.00
Equity Capital 4,765,664.00
Reserves 530,821,913.00
Total Equity 535,587,577.00
Total Liabilities 5,463,866,133.00

5 Interest Income 414,092,495.00

6 Interest Expenditure 243,442,343.00
Off plus PLL and Recoveries
Total taxes paid
Salaries and wages 40,193,437
Total expenses 430,066,413
10 Non-interest operating income 99549760
11 OR 513642255
12 Non-interest operating Expenditure 106113710
13 Provisions and Contingencies 80510360
Short term securities
Long term debt
NPA 60,875,100.00
Provisions and Contingencies include provision for tax
Provision for loan losses 38,004,587
Profit before tax 126,820,480
Tax Paid 43,244,638
Profit After tax 83,575,842
Profitability Ratios Mar-16
Return on Assets= NI/ TA 1.53%
Equity Multiplier TA/ TE 10.20
TE/ TA 9.80%
ROE=ROA X EM 15.60%

NI/ OR 16.27%
OR/ TA 9%
TA/ TE 10.20

(II - IE)/ TA 3.12%

(OI-OE)/ TA 1.82%
Provisions/TA 0.01
ROA 3.47%

(II- IE)/E A 3.35%

EA/ TA 93.30%
(II - IE)/ TA 3.12%

NIM
II/ EA 8.12%
IE/ Intt Bearing Liab 5.16%
Intt Bearing Liabilities/ EA 92.62%
Spread 2.97%

Efficiency ratio= Non intt exp/ (Net Interest Income+Non intt income) 20.66%

Risk Ratios
Liquidity Risk= Short term securities/ Deposits 0.00
Interest Rate Risk = Interest Sensitive Assets/ Interest Sensitive Liabilities
Credit Risk = Provisioning / Assets 1.47%
Capital Risk = Capital / Assets 0.09%
Leverage ratio= Total equity/Total assets 9.80%
Total capital ratio= (Total equity + Long-term debt + Reserve for loan
losses)/Total assets 31%
Provision for loan loss ratio= PLL/ TL (provision for loan losses/total loans
and leases) 1.10%
Loan Ratio = Net loans/ Total assets 0.630804831616104

Loss Ratio = Net charge-offs on loans (gross charge-offs minus recoveries)/

Total loans and leases

Reserve Ratio = Reserve for loan losses (reserve for loan losses last year
minus gross charge-offs plus PLL and recoveries)/Total loans and leases

Nonperforming ratio= Nonperforming assets (nonaccrual loans and

restructured loans)/Total loans and leases 0.017662192999573
Operating efficiency (cost control)= Wages and salaries/Total expenses
0.0935
Volatile liability dependency ratio= (Total volatile liabilities - Temporary
investments)/Net loans and leases

Other Financial Ratios

Tax rate = Total taxes paid/Net income before taxes 0.340990966127868
Gap ratio = (Interest rate-sensitive assets – Interest rate-sensitive liabilities)/
Total assets
ERFORMANCE ANALYSIS

amt in rs.thousand
Mar-17 Mar-18 Mar-19 Mar-20

6,115,464,153.00 7,037,033,671.00 8,140,459,676.00 9,278,718,058.00

308,579,478 354,810,648 350,990,403 849,592,711

201,081,701 84,297,483 329,052,679 128,405,033

1,290,183,496 1,530,367,120 1,740,558,546 1,552,816,344

3,811,646,673 4,498,436,451 5,066,561,244 5,829,588,354
38,102,336 40,488,204 41,298,823 43,943,385
465,870,469 528,633,765 611,997,981 874,372,231
5,611,491,348 6,467,911,702 7,487,162,872 8,360,402,442

1,260,484,706 1,482,021,884 1,541,290,515 1,735,926,032

2,889,342,046 3,074,555,758 3,966,168,836 4,685,646,054
1,124,547,615 1,557,670,924 1,612,498,292 1,551,801,659

5,274,374,367.00 6,114,248,566.00 7,119,957,643.00 7,973,373,745.00

276,442,238.00 280,015,886.00 342,475,845.00 441,940,023.00
4,790,072.00 5,828,207.00 5,143,290.00 5,643,356.00
559,013,433.00 636,941,012.00 672,882,898.00 857,760,934.00
563,803,505.00 642,769,219.00 678,026,188.00 863,404,290.00
6,114,620,110.00 7,037,033,671.00 8,140,459,676.00 9,278,718,058.00

451,750,929.00 466,140,592.00 560,436,523.00 637,156,804.00

267,893,474.00 276,036,927.00 338,834,746.00 379,959,407.00

47,420,971 54,144,397 59,898,715 58,199,622

536,296,658 580,126,518 651,853,154 781,789,193
124216034 118626154 141887538 163419937
575966963 584766746 702324061 800576741
127256277 147883644 167201872 180657585
141146907 156205947 145816536 221172201

212,804,800.00 342,486,400.00 297,894,400.00 302,338,200.00

111,570,646 166,305,686 102,721,131 128,352,954

5,576,753 5,576,753 75,835,511 52,544,043
-34,093,552 936,525 25,364,604 33,756,495
39,670,305 4,640,228 50,470,907 18,787,548
 Mar-17 Mar-18 Mar-19 Mar-20 Analysis and comments
0.65% 0.07% 0.62% 0.20% In last 5 years company's ROA has gone down this is maj
10.85 10.95 12.01 10.75 Over the last 5 years company has a stable Equity Multip
9.22% 9.13% 8.33% 9.31%
7.04% 0.72% 7.44% 2.18% The ratio is in a downtrend because of falling ROA. Falli

6.89% 0.79% 7.19% 2.35% The ratio is in downtrend it is because of decrease in prof
9% 8% 9% 9% This ratio seems stable through out last 5 years this is bec
10.85 10.95 12.01 10.75 Over the last 5 years company has a stable Equity Multip

3.01% 2.70% 2.72% 2.77% The ratio has fallen from Mar 16 this is because of increa
2.03% 1.69% 1.74% 1.76%
0.02 0.02 0.02 0.02 Provisions increase was similar to that of increase in total
2.73% 2.17% 2.67% 2.15% In last 5 years company's ROA has gone down this is maj

3.28% 2.94% 2.96% 3.08% The ratio is decreasing because of increasing interest exp
91.76% 91.91% 91.97% 90.10% Even though the earning assets are increasing over the wh
3.01% 2.70% 2.72% 2.77%

8.05% 7.21% 7.49% 7.62% Company has lending more loans due to which interest in
5.08% 4.51% 4.76% 4.77% As in previous ratio I have mentioned that interest expend
93.99% 94.53% 95.10% 95.37% This ratio has improved over the years which is majorly d
2.97% 2.69% 2.73% 2.86% Spread remain more or less stable because earlier two rat

22.09% 25.29% 23.81% 22.57% Even though the OR has increased in last 5 years but incr

0.00 0.00 0.00 0.00

2.31% 2.22% 1.79% 2.38% Credit risk are increasing because of increase in provision
0.08% 0.08% 0.06% 0.06% Though company has increased the equity capital in last 5
9.22% 9.13% 8.33% 9.31% This ratio remained more or less stable in last 5 years but

29% 34% 29% 27% Total capital ratio has decreased in last 5 years this was d

2.93% 3.70% 2.03% 2.20% As the NPA's has increased over the years the provision h
0.623280028733413 0.639251801442745 0.622392523967341 0.628275190339877 Loan Ratio remains stable throughout last 5 years this is m

0.055830148556899 0.076134542241642 0.058796170746535 0.051862701384833 This ratio is increasing which is a worry sign for compan
 0.0884 0.0933 0.0919 0.0744 In last 4 years company has a stable operating efficiency

-6.11351300658286 0.167933742089707 0.334468689740879 0.64244190345231 Even after decrease in profit after tax company is paying
 Analysis and comments
company's ROA has gone down this is majorly due to decreasing trend on Net profit which is because of increase in total expense. Which is not a good sign for the company
years company has a stable Equity Multiplier it is majorly due to the increase in asset was more or less similar to increase in reserve. Which is not a good sign for the company.

a downtrend because of falling ROA. Falling ROE doesn't give confidence to the investors to invest in the particular share.

downtrend it is because of decrease in profit after tax. This is again a bad sign for the company.
ms stable through out last 5 years this is because of increase in OR was equal to increase in Total Asset.
years company has a stable Equity Multiplier it is majorly due to the increase in asset was more or less similar to increase in reserve.

allen from Mar 16 this is because of increase in Income expenditure

rease was similar to that of increase in total assets because of which we have stable ratio in last 4 years.
company's ROA has gone down this is majorly due to decreasing trend on Net profit which is because of increase in total expense. This is not a good sign for the company.

creasing because of increasing interest expenditure which is not a good sign for the company.
he earning assets are increasing over the which are led by advances but increase in TA is more than increase in earning assets which is pulling the ratio down.

lending more loans due to which interest income has increased in last couple of years but the increase in earning asset was higher this was led by advances.
ratio I have mentioned that interest expenditure has increase over the years but total interest bearing liabilities has increased more than this which led the ratio to decrease.
improved over the years which is majorly due to increase in total interest bearing liabilities is more than total earning assets.
more or less stable because earlier two ratio increase in a stable pace.

he OR has increased in last 5 years but increase in non int. expenditure is much higher than OR which helps in pulling up the ratio. Since the efficiency of the company is increasing which is a

increasing because of increase in provision done by the bank in last 5 years.

any has increased the equity capital in last 5 years but the increase in total assets are much higher than equity capital which is pulling the ratio down. This is the good sign as capital risk is decre
ained more or less stable in last 5 years but there was a dip in Mar-19 this was majorly due to decrease of equity capital and sudden increase in total assets. But in Mar-20 company ratio is back

atio has decreased in last 5 years this was due to company hasn't increase much debt in its books in last 5 years, which is a good sign.

has increased over the years the provision has also increase due to which we can see a increase in this ratio. Increase in provision for loan loss ratio is not a good sign for the company.
mains stable throughout last 5 years this is majorly because of loan as well as assets increase in same pace.

creasing which is a worry sign for company as loan given to the lenders are not getting back to the company.
company has a stable operating efficiency ratio whereas in Mar-20 due to covid company has slashed salaries of its employees due which we can see a dip.

rease in profit after tax company is paying higher tax. Which is not a good sign for the company.
a good sign for the company
not a good sign for the company.

good sign for the company.

h led the ratio to decrease.

ciency of the company is increasing which is a good sign.

wn. This is the good sign as capital risk is decreasing for the company.
otal assets. But in Mar-20 company ratio is back to track which is a good sign.

tio is not a good sign for the company.