UNIVERSITY OF MUMBAI

PROJECT REPORT ON
“THE STUDY OF ANALYSIS OF FINANCIAL STATEMENTS
OF AXIS BANK”

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor in Commerce (Accounting and Finance)

Under the Faculty of Commerce

By

Sakshi Rajendra Raut

Under the Guidance of

Dr. Priyanka Mohan

SIES (NERUL) COLLEGE OF ARTS, SCIENCE AND COMMERCE,

NERUL , NAVI MUMBAI, 400706

March 2019
 PROJECT REPORT ON
“THE STUDY OF ANALYSIS OF FINANCIAL STATEMENTS
OF AXIS BANK”

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor in Commerce (Accounting and Finance)

Under the Faculty of Commerce

By

Sakshi Rajendra Raut

Under the Guidance of

Dr. Priyanka Mohan

SIES (NERUL) COLLEGE OF ARTS, SCIENCE AND COMMERCE,

NERUL , NAVI MUMBAI, 400706

March 2019
 DECLARATION

I the undersigned Miss Sakshi Rajendra Raut here by, declare that the work embodies in this
project work titled “ The study of analysis of financial statements of Axis Bank”, forms my
own contribution to the research work carried out the under the guidance of Dr. Priyanka
Mohan is a result of my own research work and has not been previously submitted to any other
University for other Degree/Diploma to this or any other university.

Wherever reference has been made to previous works of others, it has been clearly indicated as
such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.

Certified By

(Signature of Guiding Teacher) (Signature of Student)

Dr. Priyanka Mohan Sakshi Rajendra Raut

SIES (NERUL) COLLEGE OF ARTS, SCIENCE AND COMMERCE,

 NERUL , NAVI MUMBAI, 400706

CERTIFICATE

This is to certify that Ms Sakshi Rajendra Raut has worked and duly completed her Project
Work for the degree of Bachelor in Commerce ( Accounting and Finance) under Faculty of
Commerce and her project is entitled “ The study of analysis of financial statements of Axis
Bank” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.

It is her own work and facts reported by her personal findings and investigations.

( Signature of Guiding Teacher)

Dr. Priyanka Mohan

 Date of submission:

ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this project.
I would like to thank my Principal, Dr. Milind Vaidya for providing the necessary facilities
required for the completion of this project.
I take this opportunity to thank our Coordinator Dr. Priyanka Mohan, for her moral support and
guidance.
I would also like to express my sincere gratitude towards my project guide Dr. Priyanka Mohan
whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout
my project.

 
 EXECUTIVE SUMMARY

This present analysis is conducted with the purpose of analyzing and studying profit
and loss and balance sheet of axis bank on the basis of financial ratios. Financial statement
are formal records of the financial activities and positions of a business. It consists of balance
sheet and profit and loss. This analysis focuses on financial statement of axis bank.

The financial statement analysis is important as it provides meaningful information to

shareholders in taking decision. The financial statement analysis helps in taking investment
decisions. Financial statement analysis highlights the important relationship in the financial
statements. It focuses on evaluation of past performance. The financial statement analysis
shows the current position of the firm. The financial statement analysis helps in diagnosis of
managerial and operating problems.

The financial statement analysis is based on the financial ratios. Ratio analysis is an
important measure of expressing the relationship between two numbers, ratios are useful in
evaluating the financial position and comparing them to past years. This analysis emphasizes
on the profitability, solvency and efficiency of AXIS bank for the period of time.
 INDEX

CHAPTER TITLE PAGE

NO. NO.
CHAPTER:I INTRODUCTION TO THE STUDY
1.1 Introduction 02
CHAPTER:II RESEARCH METHODOLOGY
2.1 Objectives of the Study 04
2.2 Importance of the Study 05
2.3 Scope of the Study 07
2.4 Limitations of the Study 08
2.5 Research Methodology 09
2.5.1 Type of Research 10
2.5.2 Methods of Data Collection 11
CHAPTER:III LITERATURE REVIEW
3.1 Introduction 13
3.2 History 21
3.3 Company Profile 22
3.4 Awards and Recognitions 25
3.5 Organization chart 27
3.6 Study of Profit & Loss Account 29
3.7 Study of Balance Sheet 35
3.8 Financial Statement Analysis 41
3.9 SWOT Analysis 46
CHAPTER:IV DATA ANALYSIS & INTERPRETATION

4.1 Overview of financial performance 48

4.2 Comparative income statement 50
4.3 Comparative Financial performance statement 52
4.4 Ratio analysis 54
CHAPTER:V CONCLUSIONS & SUGGESTIONS 60
CHAPTER:VI BIBLIOGRAPHY 63
 CHAPTER I:
INTRODUCTION TO THE STUDY

1
1.1:-INTRODUCTION:

Present study is undertaken in banking sector .In any organization ,the two financial
statements are as the Balance sheet & Profit and loss account of the business .Balance sheet is
a statement of the financial position of an enterprise at a particular point of time. Profit and
loss account shows the net profit or net loss of a company for a specified period of time.
When these statements of the last few year of any organization are studied and analyzed,
significant conclusions may be arrived regarding the changes in the financial position ,the
important policies followed and trends in profit and loss etc .Analysis and interpretation of
the financial statement has now become an important technique of the credit appraisal .The
investors, financial experts ,management executive and the bankers all analyze these
statements .Though the basic technique of appraisal remains the same in all the cases but the
approach and the emphasis in analysis vary. Financial Statement Analysis is the collective
name for the tools and techniques that are intended to provide relevant information to the
decision makers. The purpose of the FSA is to assess the financial health and performance of
the company.

A banker interprets the financial statement so as to evaluate the financial soundness and
stability, the liquidity position and the profitability or the earning capacity of borrowing
concern .Analysis of financial statement is necessary because it help in depicting the financial
position on the basis of past and current records .Analysis of financial statement help in
making the future decision and strategies .

Therefore, it is very necessary for every organization whether it is a financial or

manufacturing etc .to make financial statement and to analyze it.

2
 CHAPTER II:
RESEARCH METHIODOLOGY

3
2.1:-OBJECTIVE OF THE STUDY:-

1. To study and analyze the Profit &Loss Account of AXIS BANK.

2. To study and analyze the Balance Sheet of AXIS BANK.

3. To evaluate the financial soundness , stability and liquidity of AXIS BANK.

4. To understand what are Financial Statements used for.

5. To Know what is behind the Numbers

6. To study Diversity of Financial Reporting

7. To evaluate the challenge of Understanding Financial Jargon

8. To endorse the saying ‘Accounting is an Art, Not a Science’

9. To understand Non-Financial Statement Information

10. To study Financial Ratios and Indicators

11. To evaluate Notes to the Financial Statements

The wide variety of businesses undertaken by the Bank requires it to identify, measure,
control, monitor and report risks effectively. The key components of the Bank’s risk
management rely on the risk governance architecture, comprehensive processes and internal
control mechanism based on approved policies and guidelines. The Bank’s risk governance
architecture focuses on the key areas of risk such as credit, market (including liquidity) and
operational risk and quantification of these risks, wherever possible, for effective and
continuous monitoring and control.

4
2.2:-IMPORTANCE OF STUDY:-

This research is essential due to increasing competition in financial sector .As this is a of
paperless work and mostly the public go where they provide higher interest and provide quick
financial assistance ..Many problems can be studied in detail with help of this survey .This
survey is helpful for various investment opportunity and services offered by the financial
institute. Financial Statement Analysis will help business owners and other interested people
to analyze the data in financial statements to provide them with better information about such
key factors for decision making and ultimate business survival.

Banking plays an important role in the financial life of a business, and the importance of
banks can be seen from the fact that they are considered as to be the life-blood of modern
economy. Although no wealth is created by Bank, but their essential activities facilitates the
process of production, exchange and distribution of wealth. In this way they become the
effective partners in the process of economic development and growth. In the words  “Banks
are the custodians and distribution of liquid capital, which is the life-blood of our commercial
and industrial activities and upon the prudence of their administration depend the economic
well-being of the nation”

1. Help in Evaluating the operational efficiency of the Concern:-  It is necessary to

analyze the financial statement for matching the total expenses incurred in manufacturing,
Advertising, selling and distribution of the finished goods and total financial expanses of the
current year comparing with the total expanses of the previous year and evaluate the
managerial efficiency of concern.

2. Help in Evaluating the short and long term financial position:-  It is necessary to
analyze the financial statement for comparing the current assets and current liabilities to
evaluate the short term and long term financial soundness.

3. Help in calculating the profitability:- It is necessary to analyze the financial

statement to know the gross profit and net profit.
5
4. Help in indicating the trend of achievements:-    Analysis of financial statement 
helps in comparing  the Financial position of previous year and also compare various
expenses, purchases and sales growth, gross and net profit.  Cost of goods sold, total value of
assets and liabilities can be compare easily with the help of Analysis of financial statement.

5. Forecasting, budgeting and deciding future line of action:- The potential growth of
the business can be predicts by the analysis of financial statement which helps in deciding
future line of action. Comparisons of actual performance with target show all the
shortcomings

6
2.3:-SCOPE OF THE STUDY:-

The purpose to use financial statements to evaluate an organization.

1. Financial performance
2. Financial position
3. Prediction of future performance
4. To understand the unwritten language of Economic Indicator.
5. To see the intent of managers before they become obvious.
6. To sense the tree elements needed for a Fraud Triangle to be complete

To apply analytical tools and techniques to financial statements to obtain useful information
to aid decision making.

7
2.4:-LIMITATIONS OF THE STUDY:-

Financial analysis is a powerful mechanism of determining financial strengths

and w e a k n e s s e s o f a f i r m b u t , t h e a n a l y s i s i s b a s e d o n t h e i n f o r m a t i o n
a v a i l a b l e i n t h e f i n a n c i a l s t a t e m e n t s . Due to the following unavoidable
and uncontrollable factors, the result might not be accurate. Some of the problems
faced while conducting the survey are as follows:-

 Time and cost constraints were also there.

 It is only a study of interim reports.

 As the financial statements are prepared on the basis of a going

c o n c e r n , i t does not give exact position. Thus accounting concepts and

conventions cause a serious limitation to financials analysis.

 It is Suffering from the limitations of financial statements

 There is Absence of standard universally accepted terminology in financial analysis

 price level changes is ignored in financial analysis

 quantity aspect is ignored in financial analysis

 Financial analysis provides misleading result in absence of absolute data

8
2.5:-RESEARCH METHODOLGY:-

Research means search for facts in order to find answers to certain questions or to find
solutions to certain problems. It is often referred to as ‘scientific inquiry’ or ‘scientific
investigation’ into a specific problem or situation.

Methodology is the systematic, theoretical analysis of the methods applied to a field of study.
It comprises the theoretical analysis of the body of methods and principles associated with a
branch of knowledge. Typically, it encompasses concepts such as paradigm, theoretical
model, phases and quantitative or qualitative techniques. A methodology does not set out to
provide solutions - it is, therefore, not the same as a method. Instead, a methodology offers
the theoretical underpinning for understanding which method, set of methods, or so-called
“best practices” can be applied to specific case, for example, to calculate a specific result.

9
2.5.1:-TYPES OF RESEARCH:-

SECONDARY DATA: Secondary data in research consists of several sources. Sometimes

primary data cannot be obtained or it becomes difficult to obtain primary data, in such cases
the researcher is bound to use secondary data. The reliability, authenticity and
generalizability of secondary data is less as compared to primary data as it has been already
manipulated and used by other people. Obtaining primary data requires more human and non-
human resources like time, money and energy, therefore in some studies researchers consider
secondary data much better and feasible.

DESCRIPTIVE RESEARCH:

Descriptive research is used to describe characteristics of a population or phenomenon being

studied. Hence, descriptive research cannot describe what caused a situation. Thus,
descriptive research cannot be used to as the basis of a causal relationship, where one
variable affects another. In other words, descriptive research can be said to have a low
requirement for internal validity. The description is used for frequencies, averages and other
statistical calculations.

10
2.5.2:-METHODS OF DATA COLLECTION:-

 Internet in today’s world is the fastest growing source of information. The internet
has become mature and today you can get any information from the internet. Most of
the books are available on the internet in e-book format. You can get information
while staying at home. The information can be obtained faster than you can obtain
from any other source. On the internet you can get e-books, e-journals, e-periodicals
and e-magazines. The internet is a multiple source of information as all of the above
mentioned sources can be obtained from the internet. Most recent and most up to date
information can be obtained from the internet as it won’t be available in books and
other forms. Getting information from the internet is inexpensive as compared to
other sources. You can get membership of different periodicals, sometimes this
membership is free otherwise you have to pay a small amount of money.
 Information collected through censuses or government departments like housing,
social security, electoral statistics, tax records.
 Progress reports.
 Newspaper
 Books

In this project secondary data is more important. So the annual reports, Balance
sheets, Profit &Loss account of “AXIS BANK” will be used for the purpose.

11
 CHAPTER III:

LITERATURE REVIEW

12
3.1:-INTRODUCTION:-

Axis Bank Limited {formerly UTI Bank}is the third largest private sector bank in India.
Axis Bank's stake holders include prominent national and international entities. It offers
financial services to customer segments covering Large and Mid-Sized Corporates, Micro-
Small &Medium Enterprise, Agriculture and Retail Businesses. Promoters
(UTI, LIC and GIC), who collectively held approx. 34% of the shares, are all entities owned
and controlled by the Government of India. The remaining 23% shares are owned by
corporate bodies, financial institutions and individual investors among others.  It has its
headquarters in Mumbai, Maharashtra.

Axis Bank is the third largest private sector bank in India. The Bank offers the entire
spectrum of financial services to customer segments covering Large and Mid-Corporates,
MSME, Agriculture and Retail Businesses.

The bank has a large footprint of 3,304 domestic branches (including extension counters) and
14,163 ATMs across the country as on 31st March 2018. The overseas operations of the Bank
are spread over nine international offices with branches at Singapore, Hong Kong, Dubai (at
the DIFC), Colombo and Shanghai; representative offices at Dhaka, Dubai, Abu Dhabi and
an overseas subsidiary at London, UK. The international offices focus on corporate lending,
trade finance, syndication, investment banking and liability businesses.

Axis Bank is one of the first new generation private sector banks to have begun operations in
1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of
India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India
(LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The
New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India
Insurance Company Ltd. The shareholding of Unit Trust of India was subsequently
transferred to SUUTI, an entity established in 2003.

With a balance sheet size of Rs. 6,01,468 crores as on 31st March 2018, Axis Bank has
achieved consistent growth and with a 5 year CAGR (2012-13 to 2017-18) of 16% in Total
Assets, 13% in Total Deposits, 17% in Total Advances.

The Retail Banking segment continues to be a key driver of the Bank’s overall growth
strategy. It encompasses a wide array of products and services across deposits, loans,
investments and payment solutions which are delivered through multiple channels to the
Bank’s customers. The Bank has over the years developed long-term relationships with its
customers by being their preferred financial solutions partner on account of its excellent
customer delivery through insights and superior services. The Bank has also succeeded in

13
making banking simple for masses by smart use of technology. The Bank has always focused
on meeting the financial needs of its customers by providing high quality products and
services through regular customer engagement in convenient manner.

During the year, the Bank continued to focus on increasing its retail deposits base,
particularly demand deposits. Savings Bank deposits crossed Rs. One lac crores and have
grown at a Compounded Annual Growth Rate (CAGR) of 21% over the last five years. As on
31 March, 2017, the Bank had over 172 lac savings account customers, registering a growth
of 15%. As on 31 March, 2017, the retail term deposits grew 14.42% and stood at Rs.
121,955 crores, constituting 64.69% of the total term deposits compared to 59.86% last year.
The Retail Assets portfolio has grown at a Compounded Annual Growth Rate (CAGR) of
31% over the last five years. The Bank continued to increase its share of retail loans to total
advances which stood at 41% compared to 29% in March 2013. Including SME loans that
qualify as regulatory retail, the share of retail loans to total loans would be 46%. The retail
loans portfolio continues to be focused on secured products, predominantly mortgages.
Secured loan products accounted for 86% of retail loans, of which Home loans accounted for
45%, retail agricultural loans accounted for 17%, auto loans 9%, loans against property 8%,
personal loans and credit cards were 11%, while non-schematic loans comprising loan against
deposits and other securities accounted for 10%.

Despite a subdued property market in fiscal 2017, the Home Loan industry grew well at
around 18%. The Bank’s Home Loan book size grew by 17%. During the year, Super Saver
Home Loan was launched where customer can park his short term funds and save interest on
his loan to the extent of excess funds parked. Rural agricultural lending was another focus
area for the Bank. The Bank launched Rural & Semi Urban (RUSU) Home loans, a Home
loan product specifically for Rural and Semi-Urban customer. As on 31 March, 2017, the
Bank’s outstanding loans in the agricultural sector grew at a healthy 29% to Rs.23,218 crores
from Rs.17,960 crores last year. Asha Home loans increased by 201% from Rs.628 crores as
on 31 March, 2015 to Rs.1,891 crores as on 31 March, 2017. The Bank is one of the largest
debit card issuers in the country, with a base of over 155 lacs. The Bank had over 24 lac
credit cards in force as of 31 March, 2016, making it the 4th largest credit card issuer in the
country. The credit cards portfolio saw a substantial increase in spends by 44%, to Rs.19,432
crores from Rs.13,535 crores last year. The Bank is also one of the largest acquirers of point-
of-sale terminals in the country with an installed base of around 3 lacs. The Bank achieved
54% YoY growth in volumes from E-commerce merchants with Rs.6,927 crores spend in
FY16 against Rs.4,504 crores in FY15.

The Bank offers a complete suite of banking and investment products under its NRI Services
for Indians living and working overseas. As on 31 March, 2017, the Bank’s aggregate NRI
deposits (Savings Bank + Term Deposits) stood at Rs.43,425 crores registering a year-on-
year growth of 6%. The Bank offers a range of forex and remittances products to its retail
customers, which include travel currency cards, inward and outward wire transfers, traveller’s
cheques, and foreign currency notes, remittance facilities through online portal as well as
14
through collaboration with correspondent banks, exchange houses and money transfer
operators. The Bank continued to have a market leadership position in Travel Currency Cards
with 16 currency options other than INR being offered. Additionally, the Bank offers a Multi-
Currency Forex Card, aimed at frequent travellers to multiple countries. The aggregate load
value on travel currency cards crossed USD 6.5 billion during the year. The Bank continues
to increase the number of geographies from which NRIs can send money to India with the
extension of Axis Remit Online to 3 new geographies in this fiscal year, bringing the total
number of originating geographies to 10. The volumes of retail remittances also rose by 21%
(excluding the volumes attributable to partner bank deposits) during the year and the Bank
processed outward remittances of over USD 2 billion and inward remittances of around USD
6 billion.

The Bank distributes investment products such as mutual funds, Bancassurance products
(Life, Health and General Insurance) and online trading products through its branches. For
the Life Insurance distribution, the Bank distributes products of Max Life Insurance
Company. Since the Bank’s strategic bancassurance tie-up with Max Life Insurance
Company in 2010, the Bank has successfully helped insure over 8 lac lives through its
distribution channels. In General Insurance, the Bank has a tie-up with Tata AIG (American
International Group) and during the year sold more than 3 lac policies and collected Rs.219
crores of premiums which is 7% over last year. The Bank offers online trading services to its
customers in collaboration with Axis Securities Ltd. (a 100% subsidiary of the Bank) under
the name Axis Direct - an enhanced and simplified online trading platform. During the year,
the Bank opened more than 3 lac online trading accounts, and in the process crossed 1 million
total customers count.
The Bank regards Financial Inclusion (FI) as an integral component of its rural strategy to
further extend its reach in the rural market. The Bank’s FI initiatives maintained momentum
this year with the Bank opening around 6 lac basic savings bank accounts through its
branches and Business Correspondents (BC) network. As of 31 March, 2017, Bank’s FI
customer base is being serviced through a network of 587 rural branches and more than
31,300 BC agents spread over 3,272 villages.

During the year, the Bank added 315 branches and its geographical reach extends to 29 states
and 6 Union Territories, covering 1,855 centres and 608 districts. As on 31 March, 2017, the
Bank had a network 2,904 branches/ECs as compared to 2,589 last year. Around 20% of the
Bank’s branches are in rural areas and 74% of the Bank’s rural branches are in unbanked
locations. As on 31 March, 2016, the Bank had 12,743 ATMs. The Bank has also deployed
1,181 Automated Deposit Machines (for cash deposits into customer accounts) and has
extended this facility for 24x7 availability in certain branches, which have integrated self-
service lobbies. Axis Bank was the first private sector Bank to introduce recyclers and first
bank in India to have 1000+ recyclers which can accept and dispense cash. As on 31 March,
2017, the Bank had deployed 1,148 recyclers. The Bank continues to see strong momentum
towards the adoption of digital channels by customers. Electronic channels now contribute
87% of all customer induced transactions in the Bank’s retail base. The Bank’s Internet
15
Banking user base is growing at 23% and transaction volumes are growing at 17% YoY. The
Mobile Application further continued its growth with close to 25 lac users generating a
monthly transaction value of over Rs.54,932 crores. The transaction volumes on Axis Mobile
have increased almost 4.35 times over last year, outpacing every other channel by a wide
margin.

 SERVICES

1. Retail banking

In the retail category, the bank offers services such as lending to individuals and small
businesses subject to the orientation, product and granularity criterion, along with liability
products, card services, Internet banking, automated teller machines (ATM) services,
depository, financial advisory services, and Non-resident Indian (NRI) services.[Axis bank is
a participant in RBI's NEFT enabled participating banks list.

2. Corporate banking

Credit : The bank offers various loan and fee-based products and services to large and mid-
corporate customers and small and medium Enterprise (SME) businesses. These products and
services include cash credit facilities, demand and short-term loans, project finance, export
credit, factoring, channel financing, structured products, discounting of bills, documentary
credits, guarantees, foreign exchange and derivative products. Liability products including
current accounts, certificates and deposits and time deposits are also offered to large and mid-
corporate segments.

Transaction banking: in April 2015, TxB provides integrated products and services to
customers in areas of current accounts, cash management services, capital market services,
trade, foreign exchange and derivatives, cross-border trade and correspondent banking
services and tax collections on behalf of the Government and various State Governments in
India.

Treasury: The treasury manages the funding position of the bank and also manages and
maintains its regulatory reserve requirements. It invests in sovereign and corporate debt
instruments and engages in proprietary trading in equity and fixed income securities, foreign
exchange, currency futures and options. It also invests in commercial papers, mutual funds
and floating rate instruments as part of the management of short-term surplus liquidity. It also
offers a wide range of treasury products and services to corporate customers.

16
Syndication: The bank also provides services of placement and syndication in the form of
local currency bonds, rupee and foreign term loans and external commercial borrowings.

Investment banking and trustee services: The bank provides investment banking and
trusteeship services through its owned subsidiaries. Axis Capital Limited provides investment
banking services relating to equity capital markets, institutional stock brokering besides
M&A advisory. Axis Trustee Services Limited is engaged in trusteeship activities, acting as
debenture trustee and as trustee to various securitization trusts.

3. International banking

The bank continues to offer corporate banking, trade finance, treasury and risk management
through the branches at Singapore, Hong Kong, DIFC, Shanghai and Colombo, and also
retail liability products from its branches at Hong Kong and Colombo. The representative
office at Dhaka was inaugurated during the current financial year.

17
  INITIATIVE

The initiatives of Axis bank are as follows :-

1. Axis pay: The newly introduced UPI will facilitate banking transactions using only a
single 'Virtual Payment Address' (VPA). While transferring money to an account, the
sender will not be forced to feed the slew of details like the account number and
bank's IFSC Code, but can transact using only the VPA

2. Ping Pay: The bank launched Ping Pay in 2015, which is a multi-social payment
solution that allows customers to transfer funds using their smart phones to both Axis
Bank accounts and other banks' account holders

3. Augmented reality: Axis Bank augmented reality feature within its mobile app
which lists all the dining destinations, property lists, shopping centers, bank ATMs,
branches and many other things not only as a location on GPS but also in real life
pictures along with distance and directions

4. Locker Booking: The bank has launched an online locker booking facility through
the mobile app to allow customers to check availability from their homes and book
instantly

5. eKYC: eKYC is an online, paperless Aadhaar card-based process for fulfilling KYC
requirements to start investing in mutual funds without submission of any documents.
SEBI has recently in 2017, allowed Aadhaar-based KYC to be used for MF
investments, for the convenience of investors. Axis Bank partnered with Visa to
launch 'eKYC' (electronic know your customer) facility, first organisation in India to
introduce biometrics-based KYC

18
6. Multicurrency Forex cards: Axis Bank offer contactless multicurrency Forex cards
to Indian travelers. The same technology has also been extended to the Bank’s Debit
and Credit card platforms. The bank has set up an in-house payment gateway that
allows for secure e-commerce transaction processing capability and reduces the cost
incurred on using external gateway.

7. Insta Personal Loan: Axis Bank provide a ‘24X7 Instant Personal Loan’ on
smartphones and ATM kiosks. Customers can get instant loan approval
and disbursement, which gets credited directly into their account

8. Axis Thought Factory: The innovation hub located in Bengaluru, has an in-house
innovation team and an accelerator programme. With this launch, Axis Bank becomes
the first Indian bank to introduce a dedicated innovation lab in the country

19
 A x is P a y

P in g P a y

A u g m e n te d re a lity

L o c k e r B o o k in g

eKYC

M u lti c u rre n c y F o re x c a rd s

A x is T h o u g h t F a c to ry

 SUBSIDIARIES

The Bank has ten wholly owned subsidiaries:

1. Axis Private Equity Ltd.

2. Axis Trustee Services Ltd.

3. Axis Asset Management Company Ltd.

4. Axis Mutual Fund Trustee Ltd.

5. Axis Bank UK Ltd.

6. Free charge

7. Axis Securities Ltd.

8. Axis Direct
20
9. Axis Finance Ltd.

10. Axis Securities Europe Ltd.

11. A.Treds Limited

12. Axis Forex

 LISTING AND SHAREHOLDING

Axis Banks's equity shares are listed on the Bombay Stock Exchange and National Stock

Exchange of India. The company's global depository receipts (GDRs) are listed on
the London Stock Exchange.] The Bonds issued by the Bank under the MTN programme are
listed on the Singapore Stock Exchange.

3.2:-HISTORY:-

UTI Bank opened its registered office in Ahmedabad and corporate office in Mumbai in
December 1993. The first branch was inaugurated on 2 April 1994 in Ahmedabad by Dr.
Manmohan Singh, the Finance Minister of India. UTI Bank began its operations in 1993,
after the Government of India allowed new private banks to be established. The Bank was
promoted in 1993 jointly by the Administrator of the Unit Trust of India (UTI-I), Life
Insurance Corporation of India (LIC), General Insurance Corporation, National Insurance
Company, The New India Assurance Company, The Oriental Insurance Corporation
and United India Insurance Company.

21
In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but the Reserve
Bank of India (RBI) withheld approval and nothing came of this. In 2004 the RBI put Global
Trust into moratorium and supervised its merger into Oriental Bank of Commerce. UTI Bank
opened its first overseas branch in 2006 Singapore. That same year it opened a representative
office in Shanghai, China.

UTI Bank opened a branch in the Dubai International Financial Centre in 2007. That same
year it began branch operations in Hong Kong. The next year it opened a representative office
in Dubai.

Axis Bank opened a branch in Colombo in October 2011, as a Licensed Commercial Bank
supervised by the Central Bank of Sri Lanka. Also in 2011, Axis Bank opened a
representative offices in Abu Dhabi.

In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. Axis Bank
UK has a branch in London.

The bank has over 50,000 employees (as of 31 March 2016). The bank incurred Rs.26.7
billion (US$400 million) on employee benefits during the FY 2012–13. The average age of
an Axis Bank employee is 29 years. The attrition rate in Axis Bank is approx. 9% per
year. Deepika Padukone, a Bollywood actress is the brand ambassador of Axis Bank.

3.3:-COMPANY PROFILE :-

AXIS Bank has a large footprint of 14,163 ATMs spread across the country as on 31st March
2017. The international offices focus on corporate lending, trade finance, syndication,
investment banking and liability businesses.

Axis Bank is one of the first new generation private sector banks to have begun operations in
1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of
India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India
(LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The
New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India

22
Insurance Company Ltd. The shareholding of Unit Trust of India was subsequently
transferred to SUUTI, an entity established in 2003.

With a balance sheet size of Rs. 6,01,468 crores as on 31st March 2018, Axis Bank has
achieved consistent growth and stable asset quality with a 5 year CAGR (2011-12to 2017-18)
of 16% in Total Assets, 13% in Total Deposits, 17% in Total Advances and 55.26% in Net
Profit.

 VISION & VALUES:-

To be the preferred financial solutions provider excelling in customer delivery through

insight, empowered employees and smart use of technology

 CORE VALUES
1. Customer Centricity
2. Ethics
3. Transparency
4. Teamwork
5. Ownership

23
REGISTERED OFFICE:

Trishul’, 3rd Floor, Opp. Samartheshwar Temple, Near Law Garden, Ellisbridge, Ahmedabad
- 380 006
Tel.: +91-79-66306161 Fax: +91-79-26409321
Email: shareholders@axisbank.com
Website: www.axisbank.com

CORPORATE OFFICE:

‘Axis House’, C-2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai -
400 025
Tel.: +91-22-24252525/43252525
Fax: +91-22-24251800

24
CAPITAL STRUCTURE:

The Bank has authorized share capital of Rs. 850crores comprising 476.57crore equity shares
of Rs.2/- each. As on 31st March 2017, the Bank has issued, subscribed and paid-up equity
capital of Rs. 476.6 crores, constituting 2,38,28,31,826 equity shares of Rs.2/- each. The
Bank’s shares are listed on the National Stock Exchange of India Limited and the BSE
Limited. The GDRs issued by the Bank are listed on the London Stock Exchange (LSE). The
Bonds issued by the Bank under the MTN programme are listed on the Singapore Stock
Exchange.

25
3.4:-AWARDS & RECOGNITION :

1. Best Debt Arranger on electronic Bidding Platform at NSE market Achievers

Awards 2018

2. Winner of 'Best Use of Mobile within a Loyalty Strategy' at the Loyalty Awards
2018

3. Winner of 'Best Loyalty program in financial sector-banking at the Customer

Loyalty Awards 2018

4. Winners of ‘Best contact centre at the customer experience Awards’ 2018

5. Awarded as the Best Performing Private Bank a CNBC TV18 Financial Advisor
Awards 2017-18

6. Won Excellence in CSR at the CII-ITC Sustainability Awards 2018.

7. Wins the Most innovative risk management project, India at the Asset Triple a
digital awards 2017

26
8. Winners of the Dale Carnegie Global leadership Awards for 2017

9. Axis bank wins the FICCI CSR award 2016-17 in the women empowerment
category

10. Received award for Excellence in Corporate Social Responsibility by CII-ITC

Sustainability Awards 2016

11. Awarded the Best Digital Bank at the Business Today Money Today Financial
Awards 2016

12. Recognised as the 'Socially Aware Corporate of the Year' by Business Standard’s
Corporate Social Responsibility Awards 2016

13. Awarded the Bank of the Year in India at The Banker Awards 2016

14. Best Domestic Bank India- Asia money Best Domestic Bank awards 2016

27
3.5:-ORGANIZATION STRUCTURE:

28
 BOARD OF DIRECTORS

Sanjiv Misra Chairman

Amitabh Chaudhry Managing Director & CEO

Stephen Pagliuca Director

Prasad R. Menon Director

Samir K. Barua Director

Som Mittal Director

Rohit Bhagat Director

Usha Sangwan Director

S. Vishvanathan Director

Rakesh Makhija Director

Ketaki Bhagwati Director

B. Babu Rao Director

V. Srinivasan Deputy Managing Director

Rajiv Anand Executive Director (Retail Banking)

Rajesh Dahiya Executive Director (Corporate Centre)

29
3.6:-STUDY OF PROFIT & LOSS A/C:-

 MEANING:-

It is a financial statement, which shows net profit and net loss of a company for a specified
period. The accounting year means calendar year of 12 months or less or more than 12
months.

 CONTENTS:

It shows Gross Profit or Gross Loss brought forward from the Trading Account, All Indirect
Expenses, All Indirect Expenditures & Net Profit.

 FORMAT:

The Companies Act does not provide any specific format for this account. However it is
required to prepare on the basis of the instructions given in part of Schedule VI of the
Companies Act.

 OBJECTIVES OF PROFIT AND LOSS ACCOUNT

The profit and loss account is prepared for the determination of net profit or net loss for the
specific period of time. The following are the main objectives of profit and loss account:

1. To know the amount of net profit or net loss: 

Profit and loss account compares between indirect expenses and indirect incomes which
helps to find out the amount of net profit and net loss made by the business the particular
period of time. It enables the businessman to make a comparison of net profit or the net
loss of the current year with the previous year.

2. To provide information about office and administrative expenses: 

Office and administrative expenses like office salaries, printing and stationary expenses,
legal expenses, telephone and electricity charges, office rent, audit fees, insurance
premium etc. Percentage of such expenses on sales can be determined and compared with
the previous year, which helps to control such expenses.

30
3. To provide information about selling and distributing expenses: 
Selling and distributing expenses like warehouse expenses, carriage on sales, packing
expenses, commission on sales, advertising, traveling expenses etc. Percentage of such
expenses on sales can be determined and compared with the previous year, which helps to
control such expenses.

4. To provide information about other expenses and losses: 

Depreciation, repairs and maintenance, bad debts, provision for bad debts, loss on sale of
fixed assets and loss of goods in transit are some of the examples of other expenses and
losses. The information of such expenses is also provided by profit and loss account.
These expenses can be compared with the expenses of the previous year and remedial
action can be taken for minimizing such expenses and losses.

5. To provide information about financial expenses: 

The financial expenses which includes interest on a loan, interest on bank overdraft, bank
charges etc. Percentage of such expenses on net profit can be determined and compared
with the previous year, which provides pertinent information for raising a loan.

6. To provide information about incomes and profits:

Different types of incomes and profits are earned by the business in the process of
operation of the business. Rent received, interest received, the commission received,
discount received, and profit on the sale of fixed assets and bad debts recovered are some
of the examples of such incomes and profits.
7. To make comparison: 
Profit and loss account helps to evaluate the progress of the business by comparing the
amount of sales and net profit of current year with those of previous years.

8. To measure efficiency: 
Profit and loss account helps in measuring the operating efficiency of the business by
comparing the amount of net profit with the amount of operating expenses.

31
  IMPORTANCE AND ADVANTAGES OF PROFIT AND LOSS ACCOUNT

Profit and loss account is essential to determine the operating result of the business. It helps
to examine the operating efficiency of the business. The importance and advantages of profit
and loss account are as follows: -
1. It gives the actual information about net profit or net loss of the business for an accounting
period.
2. It account gives the actual information about indirect expenses.
3. It serves to determine the ratio between net profit to sales.
4. It helps in determining the ratio between net profit to operating expenses.
5. It helps in controlling indirect expenses.
6. It helps to prepare plans and policies by making a comparative study of net profit, indirect
incomes, and indirect expenses.

 MAIN ITEMS OF PROFIT & LOSS ACCOUNT:

Profit and loss is prepared in form ledger. So, it contains two sides i.e. debit and credit
side. The items included in profit and loss account are as follows: -

 ITEMS RELATING TO DEBIT SIDE:

 OFFICE AND ADMINISTRATIVE EXPENSES:

All the office and administrative expenses like office salaries, printing and stationery
expenses, legal expenses, telephone and electricity charges, office rent, audit fees, insurance
premium etc. are debited in profit and loss account.

 SELLING AND DISTRIBUTING EXPENSES:

All the selling and distributing expenses like warehouse expenses, carriage on sales,
packing expenses, commission on sales, advertising, traveling expenses etc. are debited in
profit and loss account. These expenses incurred in maintaining and promoting sales.

 FINANCIAL EXPENSES:

The financial expenses that include interest on the loan, loan, interest on bank overdraft,
bank charges etc. are debited in profit and loss account. These expenses are incurred for the
steady supply of financial necessary for the business.
32
  DEPRECIATION AND REPAIR & MAINTENANCE:

Depreciation is the loss for a business because it is the permanent decrease in the value of
fixed assets due to their continuous use. The repair & maintenance expenses are incurred to
maintain the working condition of the fixed assets.

 OTHER EXPENSES AND LOSSES:

Other expenses and losses are included on the debit side of the profit and loss account.
Bad debts, provision for bad debts, loss on sale of fixed assets, loss of goods in transit etc. are
some of the other expenses.

 ITEMS RELATING TO CREDIT SIDE:

 INDIRECT INCOMES:

Profit and loss account contains all the indirect incomes in its credit side. Incomes
from commission and discount are the examples of indirect incomes.

 OTHER INCOME AND PROFITS:

Profit and loss account contains all other incomes like interest on investment, interest
on deposit, dividend received, bad debts recovered etc. it also includes profit on sale of
fixed assets, profit on sale of investment etc.

PROCEDURES OF PREPARING PROFIT AND LOSS ACCOUNT:

The procedures of preparing the profit and loss account can be explained as follows: -

 TRANSFERRING GROSS PROFIT OR GROSS LOSS:

The amount of gross profit is transferred from the trading account in the credit side of
the profit and loss account with the words “By gross profit b/d”. If there is the gross loss
in the trading account, it is transferred in its debit side with the words “To gross loss b/d”
under particulars column.

33
  PLACING EXPENSES AND LOSSES IN DEBIT SIDE:

Items relating to office and administrative expenses, selling and distributing expenses,
financial expenses, depreciation and repairs and maintenance expenses and other expenses
and losses are debited in the profit and loss account.

 PLACING INCOMES AND PROFITS IN CREDIT SIDE:

Items relating to indirect incomes and other incomes and profits are credited in the profit and
loss account.

 BALANCING AND CLOSING THE PROFIT & LOSS ACCOUNT:

Profit and loss account is prepared to know the amount of net profit or net loss. It is
determined by balancing the profit and loss account. The following procedures are followed
for balancing and closing the profit and loss account: -

 Find out the heavier side:

 Put the difference amount in lighter side to make total of both sides equal
 Write the words “To net profit c/d” if credit total exceeds debit total or “By net loss
c/d” if the debit total exceeds credit total against the difference amount under
particulars column.
 Draw double parallel lines after the total amount of both sides to close the accounts.

34
  RULING OR SPECIMEN OF PROFIT AND LOSS ACCOUNT

Profit and loss account is prepared after preparation of trading account. The specimen of
profit and loss account is as follows: -

35
3.7:-STUDY OF BALANCESHEET:

 MEANING:

The balance sheet is a statement of assets, capital, and liabilities of the business. It is the
statement, which depicts the financial position of the business on a particular date. It is not an
account rather a financial statement. It presents the liability on the left-hand side and the
assets on its right-hand side either in order of permanence or order of liquidity.

 OBJECTIVES OF BALANCE SHEET:

The main objectives of balance sheet are as follows: -

1. To present the actual financial position of the business on a given date.

2. To know the amount of trade debtors and creditors.
3. To show nature, value and position of all the assets and liabilities.
4. To help to determine the actual value of the business at the time of sale or liquidation.
5. To know the amount of capital owing to the owner at the close of the year.
6. To help to obtain a loan from financial institutions by reflecting the actual financial
position of the business.
7. To serve as an evidence for setting disputes.
8. To help to judge the liquidity and solvency position of the business.
9. To help to evaluate the strengths and weaknesses of the business.
10. To supply reliable information regarding assets and liabilities for making a
comparison and preparing plans and policies.

 ADVANTAGES AND IMPORTANCE OF BALANCE SHEET:

The followings are the main advantages and importance of balance sheet: -

1. It provides the information of assets, capital and liabilities of the business.

2. It helpful in ascertaining the financial position of the business by showing assets and
liabilities of the concern on a specific date.
3. It discloses the solvency of business by showing how much assets are avaiable for
payment of liabilities.
36
 4. It helps in calculation of various ratios which help in better management of business.
5. It helps in comparison of assets and liabilities of business on two dates to ascertain the
progress being made by business.
6. It helps for settling disputes.
7. It helps for selling the business by presenting the true value of assets and liabilities.

 ITEMS INCLUDED IN BALANCE SHEET:

Balance sheet is the final results which shows the financial picture of the business
organization. The balance sheet contains the items of capital, liabilities, and assets. The items
shown by the balance sheet are as follows: -

 ITEMS INCLUDED IN LIABILITIES SIDE:

CAPITAL:

Capital is an amount, which is invested in terms of cash or other assets by the owner for the
establishment and operation of the business.

NET PROFIT OR LOSS:

The amount of net profit is added to the capital and the amount of net loss is deducted from
the capital.

DRAWING:
It reduces the capital of the businessman because it is an amount drawn by the owner from
the business in terms of cash or kind for his personal use. So, it is deducted from the amount
of capital.

RESERVE FUND:

The company may create different types of funds which are created out of the profit. This
funds are created to meet future contingencies and losses. The pension fund, dividend
equalization fund, and sinking fund are some of the examples of the reserve fund.

37
LOAN:
The amount borrowed from the individual and financial institution is known as a loan.
Interest should be paid to the person or institution on the loan borrowed.

CREDITORS:
Creditors are the bank or supplier or a person that has provided credit to the company. Hence,
it is created in liabilities side of a balance sheet.

BILLS PAYABLE:

The amount of bill drawn by the creditor and accepted by the business promising in writing
for paying the amount of goods purchased on credit on a certain date is called bills payable.

BANK OVERDRAFT:

The form of lending from a bank which allows a business to withdraw funds from its bank
account is known as bank overdraft.

OUTSTANDING EXPENSES:

Expenses incurred but not yet paid, are called outstanding expenses. Outstanding expenses
are the liabilities of the business.

ADVANCE INCOMES:

The incomes received in advance before earning it are called advance incomes. Advance
incomes are the liabilities of the business.

38
  ITEMS INCLUDED IN ASSETS SIDE

FIXED ASSETS:

The assets like goodwill, land, building, plant and machinery, vehicles and furniture are some
of the examples of fixed assets. They are created in assets side of the balance sheet.

INVESTMENT:

The money which is invested outside the business for earning incomes is called investment.
The investment are also created in assets side of balance sheet.

LOAN GIVEN:

The amount of loan given to the individual or corporation is an asset of the business. Interest
is receivable on such lending loan.

CLOSING STOCK:

Closing stock are created in assets side of balance sheet as it is the value of goods remained
unsold at the end of the accounting period.

DEBTORS:

Debtors are who has taken the goods on credit or money on debt. So, debtors are included in
assets side of the balance sheet.

BILLS RECEIVABLE:

The amount of bill relating to the credit sale drawn to pay the amount of bill on a certain date
which is drawn by business and accepted by debtors is called bills receivable.

39
ACCRUED INCOME:

Income earned but not yet received is called accrued income. It is an asset of the business so
it is included in assets side of balance sheet.

PREPAID EXPENSES:

Prepaid expense is an asset of the business which is paid in advance.

CASH AT BANK:

The excess of deposit over withdrawal is considered as cash at the bank.

CASH IN HAND:

The cash at hand includes the amount of petty cash fund and the undeposited amount of
cheque. This is created in assets side of balance sheet.

40
  RULING OR SPECIMEN OF BALANCE SHEET:

The balance sheet is prepared after preparing the profit and loss account. It is prepared at the
last day of the accounting period. The specimen of balance sheet is as follows: -

41
3.8:FINANCIAL STATEMENT ANALYSIS:

 MEANING:

Financial statement analysis is the process of examining relationship among financial

statement elements and making comparisons with relevant information. It is a valuable tool
used by investors and creditors, financial analysts, and others in their decision-making
processes related to stocks, bonds and other financial instruments. With a great
understanding of the Balance Sheet and Profit & Loss Account and how it is constructed, we
can look at some techniques to analyze the information contained within the Balance Sheet
and Profit & Loss Account.

 PURPOSE:

The main purpose of analyzing the financial statement are as follow:

 To assess past performance and current financial position.

 To make prediction about the future performance of a company.

 TOOLS FOR ANALYSING:

1.PERCENTAGE CALCULATION:

There are two popular methods by which we can analyze the financial statement by
calculating percentage as taking a common base. They are as follows:

 HORIZONTAL ANALYSIS:

Horizontal analysis compares financial information over time, typically from past quarters
or years. Horizontal analysis is performed by comparing financial data from a past statement,
such as the income statement. When comparing this past information one will want to look
for variations such as higher or lower earnings.

FORMULA:

If we want to calculate % change in sales then we apply the following formula:

42
 Percentage=Changes in sales ÷ Base year sales ×100

 VERTICAL ANALYSIS:

Vertical analysis is a percentage analysis of financial statements. Each line item listed in
the financial statement is listed as the percentage of another line item. For example, on an
income statement each line item will be listed as a percentage of gross sales. This technique
is also referred to as normalization or common-sizing.

FORMULA:

If we want to calculate % change of current assets then we apply the following formula:

Percentage=Current assets ÷ Total assets ×100

43
2.RATIO ANALYSIS:

Financial ratio analysis uses formula to gain insight into the company and its operations.
For the Balance Sheet using financial ratios (like debt-to-equity ratio) can show you a better
idea of the company’s financial condition along with its operational efficiency. It is important
to note that some ratios will need information from more than one financial statement, such
as from the Balance Sheet and the Income Statement. Ratio analysis facilitates inter-firm and
intra-firm comparison. Ratios are often classified using the following terms:

 LIQUIDITY RATIO:

Liquidity ratios are measure on the short-term ability of the company to pay its debts when
they come due and to meet unexpected needs for cash.

 CURRENT RATIO:
The current ratio is a rough indication of a firm ability to service its current
obligations. The stronger ratio reflects a numerical superiority of current assets over
current liabilities

 FORMULA:

Current ratio=Current Assets÷ Current Liabilities

 QUICK RATIO:

It is also known as the “Acid Test” ratio, this is a refinement of the current ratio
and is a more conservative measure of liquidity. The quick ratio expresses the degree
to which a company’s current liabilities and recovered by the most liquid current
assets.

 FORMULA:

44
 Quick ratio=(Cash +marketable securities+ receivables)÷ Current
liabilities

 SOLVENCY RATIO:

Solvency ratio indicate the ability of the company to meet its long-term obligations on
a continuing basis and thus to survive over a long period of time.

 DEBT/WORTH RATIO:
This ratio expresses the relationship between capital contributed by creditors and that
contributed by owners. It expresses the degree of protection provided by the owners
for the creditors. The higher the ratio, the greater the risk been assumed by creditors.
The lower the ratio, the greater the long-term financial safety. A firm with a low
debt/worth ratio usually has a greater flexibility to borrow in the future. A more
highly leveraged company has a more limited debt capacity.

 FORMULA:

Debt/Worth ratio=Total Liabilities ÷ Total Net Worth

 PROFITABILITY RATIO:
Profitability ratio are gauges of the company’s operating success for a given period of
time.
 RETURN ON ASSETS:

Return on assets is a measure of how effectively the firm’s assets are being used to
generate profit.

 FORMULA:

Return on Assets=Net Income ÷ Total Assets

 RETURN ON EQUITY:

45
Return on equity is the bottom line measure for the shareholders, measuring for the profits
earned for each rupee invested in business.

 FORMULA:

Return on Equity= Net Income ÷ Shareholder’s Equity

 FIXED/WORTH RATO:

This ratio measures the extent to which owner’s equity (capital)has been invested in plant and
equipment (fixed assets). A lower ratio indicates a proportionately smaller investment in
fixed assets in relation to net worth and a better cushion for creditors in case of liquidation.
Similarly, a higher ratio would indicate the opposite situation. The presence of substantial
leased fixed assets (not shown on the balance-sheet) may deceptively lower the ratio.

 FORMULA:

Fixed Worth Ratio=Net Fixed Assets ÷ Tangible Net Worth

46
3.4:SWOT ANALYSIS OF AXIS BANK:

STRENGTHS:

 AXIS Bank has been given the rating as one of top three positions in terms of fastest
growth in private sector banks.
 The bank has a network of 3,304 branches and 14,163 ATM’s.
 The bank financial positions grows at a rate of 20% every year which is major
positive sign for any bank.
 The bank has a good image among urban population.
 It has been showing good growth in banking industry sector.
 Axis bank market share is increasing in rural areas.
 It has nine international offices.

WEAKNESS:

 Less number of international branches.

 Share prices are not stable.
 It has less branches as compared to its direct competitors.
 Image of the bank still under the shadow of the UTI debacle .

OPPORTUNITIES:

 Market penetration in rural areas of India.

 Market development in international markets.

THREATS:

 Threats of new entrants.

 Tough competition of foreign banks.
 Fierce competition.
 New banking license issued by Reserve Bank Of India.

47
 CHAPTER IV:
DATA ANALYSIS AND
INTERPRETATION OF DATA

48
4.1:OVERVIEW OF FINANCIAL PERFORMANCE:

OPERATING PERFORMANCE:

(Rs.in crores)

PARTICULARS 2017-2018 2016-2017 %CHANGE

Net Interest Income 18,093.12 16,832.97 7.49

Non-Interest Income 11,691.31 9,371,46 24.75
Operative Revenue 29,784.43 26,204.43 13.66
Operating Expenses 12,199.91 10,100.82 20.78
Operating Profit 17,584.52 16,103.61 9.20
Provisions & Contingencies 12,116.96 3,709.86 226.62
Profit Before Tax 5,467.56 12,393.75 (55.88)
Provision For tax 1,788.28 4,170.09 (57.12)
Net Profit 3,679.28 8,223.66 (55.26)

Net profit for the year ended 31 March,2018 contracted by 55.26% and stood at Rs.3,679.28
crores, as compared to the net profit of Rs.8,223.66 crores last year, primarily on account of
higher provision for non-performing assets (NPAs). Operating profit reported a steady growth
of 9.20% at Rs.17,584.52 crores over the previous year with healthy operating revenue
growth of 13.66%.

Operating revenue rose from Rs.26,204.43 crores in fiscal 2017 to Rs.29,784.43 crores in
fiscal 2017. Net interest income (NII)rose 7.49%from Rs.16,832.97 crores in fiscal 2016 to
Rs.18,093.12 crores in fiscal 2017.Non-interest income consisting of fee, trading and other
income grew strongly by 24.75% from Rs.9,371.46 crores in fiscal 2016 to Rs.11,691.31
crores in fiscal 2017. Fee income increased by 5.07% from Rs.7,501.97 crores in fiscal 2016
to Rs.7,882.01 crores in fiscal 2017.Trading profit grew strongly by 172.70% and stood at
Rs.3,400.34 crores in fiscal 2017.

Operating expense rose 20.78% from Rs.10,100.82 crores in fiscal 2017 to Rs.12,199.91
crores in fiscal 2017 as the Bank continued to invest in branch infrastructure, technology and
human capital to support its business growth. Steady growth in operating revenues despite
49
higher operating expenses this fiscal enable the Bank’s operating profit to grow by 9.20% to
Rs.17,584.52 crores from Rs.16,103.61 crores reported last year . Provisions and
contingencies jumped 226.62% from Rs.3,709.86 crores in fiscal 2017 to Rs.12,116.96
crores in fiscal 2018. Consequently, profit before taxes and net profit both contracted by
55.88% and 55.26%,from Rs.12,393.75 crores and Rs.8,23.66 crores in fiscal 2017 to
Rs.5,467.56 crores and Rs.3,679.28 crores in fiscal 2018 respectively.

50
4.2:COMPARATIVE INCOME STATEMENT:

TREND ANALYSIS SUMMARISED PROFIT & LOSS A/C

(ON 31st MARCH 2018)

Parameter MAR'18 MAR'17

(Rs. in Thousands) (Rs. in Thousands)
I. INCOME
Interest Earned 445,421,579 409,880,364
Other Income 116,913,107 93,714,644
Total Income 562,334,686 503,595,008
II. EXPENDITURE
Interest Expended 264,490,420 241,550,675
Operating Expenses 121,999,053 101,008,186
Provisions and Contingencies 139,052,421 78,799,519
Total 525,541,894 421,358,380
III.NET PROFIT FOR THE YEAR (I- 36,792,792 82,236,628
II)
IV. Balance In Profit & Loss Account 237,664,559 176,234,914
Brought Forward From Previous Year
V. AMOUNT AVAILABLE FOR 274,457,351 258,471,542

APPROPRIATION

VI . APPROPRIATION :
Transfer to Statutory Reserve 9,198,198 20,559,157
Transfer to/(from) Investment Reserve (871,671) (418,074)
Transfer to Capital Reserve 7,555,740 620,406
Transfer to/(from) Reserve Fund 17,522 17,409
Dividend paid (includes tax on 14,074,287 28,085
dividend)
Balance in Profit & Loss Account 244,483,275 237,664,559
carried forward

51
Total 274,457,351 258,471,542
VII. EARNING PER EQUITY SHARE
( Face value Rs.2/- per share ) (Rupees)
Basic 15.40 34.59
Diluted 15.34 34.40

By analyzing the summarized Profit & Loss Account of AXIS BANK the following trends
are presented:

 Total Income Earned in financial year 2018 Rs.562,334,686 thousands is more as

compared to previous financial year 2017 Rs.503,595,008 thousands.
 Total Operating Expenses increased from Rs. 121,999,053 thousands in financial year
2018 than that of financial year 2017 Rs.101,008,186 thousands.
 Total Provisions and Contingencies had a high increasing of Rs. 139,052,421
thousands in financial year 2018 as that of Rs. 78,799,519 thousands in financial year
2017.
 Net Profit /Loss for the year 2018 was Rs. 244,483,275 thousands as that of 2017
Rs.237,664,559 thousands.
 Total Profit/Loss available for Appropriations is high Rs.274,457,351 thousand in
year 2017 as that of Rs. 258,471,542 thousand.
 Basic Earning Per Share Price is Rs.15.40 in 2018 which was Rs.34.59 in year 2017.

52
4.3:COMPARATIVE FINANCIAL POSITION STATEMENT:

TREND ANALYSIS SUMMARIZED BALANCE SHEET

(ON 31 MARCH 2018)

PARTICULARS MAR'18  MAR'17

(Rs. in Thousands) (Rs. in
Thousands)
CAPITAL AND LIABILITIES
Capital 4,790,072 4,765,664
Reserves & Surplus 552,835,346 526,883,409
Deposits 4,143,787,878 3,579,675,603
Borrowings 1,050,308,694 1,085,803,789
Other Liabilities & Provisions 262,954,713 201,081,731
TOTAL 6,014,676,703 5,398,210,196
ASSETS:
Cash and balance with RBI 308,579,390 223,611,495
Balances with banks and money at call 193,982,441 109,642,909
Investments 1,287,933,704 1,315,240,609
Advances 3,730,693,495 3,387,737,229
Fixed Assets 37,468,925 35,231,719
Other Assets 456,018,748 326,746,235
Total 6,014,676,703 5,398,210,196
Contingent Liabilities 6,696,258,442 6,174,463,565
Bills for collection 810,553,648 512,794,653

By analyzing the summarized Balance Sheet of AXIS BANK the following trends are
presented:
53
 Total Assets and Total Liabilities are increased in 2018 from Rs. 6,014,676,703
thousand to Rs. 5,398,210,196 thousand in 2017.
 Increase in cash balance with bank in 2018 is more than in the previous year 2017.In
2018 it is Rs.19,818.84crore and in 2017 it is Rs.22,361.15crore i.e.by 12.83%.
 Increase in advances in 2018 is Rs. 3,730,693,495 thousand as compared to Rs.
3,387,737,229 thousand in 2017.
 Increase in Fixed Asset and Other Asset of 2018 is also high as compared to 2016.
 Investments decreased from Rs.1,315,240,609 thousand in 2017 to Rs.1,287,933,704
thousand in 2018.
 Increase in Balances with banks money at call and short notice from Rs.109,642,909
thousand in 2017 to Rs.193,982,441 thousand in 2018.

54
4.4:RATIO ANALYSIS:

PARTICULARS MAR'18  MAR'17  MAR'16  MAR'15  MAR'14 

(Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.)
Operational & Financial Ratios:
  Earnings Per Share (Rs) 34.51 31.04 132.34 110.68 102.67
   DPS(Rs) 5.00 4.60 20.00 18.00 16.00
   Book NAV/Share(Rs) 223.12 188.47 813.47 707.50 551.99
Performance Ratios:
   ROA(%) 1.67 1.74 1.72 1.65 1.61
   ROE(%) 16.81 17.75 17.43 18.53 20.29
   ROCE(%) 13.01 14.25 15.20 15.01 15.82
Efficiency Ratios:
   Cost Income Ratio 38.55 40.74 40.82 42.63 44.70
  Core Cost Income Ratio 40.11 42.62 41.52 44.23 44.95
Operating Costs to Asset 1.92 1.99 2.06 2.03 2.10
Growth Ratio:
Core Operating Income 18.34 19.01 23.64 20.56 22.17
Growth
Operating Profit Growth -15.34 -9.17 6.25 -29.58 -122.51
   Net Profit Growth 11.77 18.34 20.05 22.09 25.19
   BVPS Growth 18.38 -76.83 14.98 28.17 19.28
   Advances Growth 20.52 22.17 16.81 16.03 19.21
   EPS Growth(%) 11.19 -76.55 19.56 7.81 24.39
Liquidity Ratios:
   Loans / Deposits(x) 0.28 0.25 0.18 0.17 0.15
   Total Debt / Equity(x) 0.06 0.06 0.06 0.06 0.05
   Current Ratio(x) 0.34 0.36 0.40 0.45 0.42
   Quick Ratio(x) 27.72 24.74 17.90 17.40 15.48

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1.CURRENT RATIO:
Current Ratio may be defined as the relationship between Current Assets and Current
Liabilities.
Table 1.1

MARCH 2014 MARCH 2015 MARCH 2016 MARCH 2017 MARCH 2018
0.42 0.45 0.40 0.36 0.34

0.5
0.45
0.45
0.42
0.4
0.4
0.36
0.35 0.34

0.3

0.25

0.2

0.15

0.1

0.05

0
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

Current Ratio

(Source :Calculated from the ratio analysis report of AXIS BANK

INTERPRETATION:
 According to study current year of financial year 2018 is very low as compared to
others
 It was high in year 2015.
 There has been deterioration in the liquidity position of the firm.

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2.QUICK RATIO:

Quick Ratio also known as Acid test or Liquid Ratio is more rigorous test of liquidity than
the Current Ratio.

Table 1.2

MARCH 2014 MARCH 2015 MARCH 2016 MARCH 2017 MARCH 2018
15.48 17.40 17.90 24.74 27.72

30
27.72

24.74
25

20
17.4 17.9
15.48
15

10

0
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

Quick Ratio

INTERPRETATION:
 Usually, a high test ratio is an indication that the firm is liquid and has the ability to
meet its current or liquid liabilities in time and on the other hand a low quick ratio
represent that the firm’s liquidity position is not good.

57
3.DEBT-EQUITY RATIO:
A measure of a company’s financial leverage calculated by dividing its total liabilities by
stockholder’s equity. It indicates what proportion of equity and debt the company is using to
finance its assets.
Table 1.3

MARCH 2014 MARCH 2015 MARCH 2016 MARCH 2017 MARCH 2018
0.05 0.06 0.06 0.06 0.06

0.062
0.06 0.06 0.06 0.06
0.06

0.058

0.056

0.054

0.052
0.05
0.05

0.048

0.046

0.044
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

Debt-equity Ratio

INTERPRETATION:

 The debt-equity ratio(D/E) is a financial ratio indicating the relative proportion of

shareholder’s equity and debt used to finance a company’s assets
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  Here in case of AXIS BANK we can see that Debt-Equity Ratio is stable over the
years

4.RETURN ON ASSETS:

Return on assets (ROA) is an indicator of how profitable a company is relative to its total
assets. ROA gives an idea as to how efficient management is at using its assets to generate
earnings.

Table 1.4

MARCH 2014 MARCH 2015 MARCH 2016 MARCH 2017 MARCH 2018
1.61% 1.65% 1.72% 1.74% 1.67%

1.80%

1.75% 1.74%
1.72%

1.70%
1.67%
1.65%
1.65%

1.61%
1.60%

1.55%

1.50%
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

Return on assets

INTERPRETATION:

59
  According to study, Return on Assets of financial year 2017 is low as compared to
previous 4 years .
 In year 2016 it was high i.e.1.74%
 Performance of the current year is not that good.

5.RETURN ON EQUITY:

Return on equity (ROE) is a measure of profitability that calculates how many dollars
of profit a company generates with each dollar of shareholders' equity. 

Table 1.5

25.00%

20.29%
20.00%
18.53%
17.43% 17.75%
16.81%

15.00%

10.00%

5.00%

0.00%
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

Return on equity

INTERPRETATION:

 From year 2014 Return on Equity Ratio % is going on decreasing.

 In year 2018, it is 16.81% which is not fair .
 Year 2014 has high % that is 20.29%

60
CHAPTER V:

CONCLUSION
&
SUGGESTIONS

61
CONCLUSION:

The balance-sheet is an important tools for investors and many other parties who are
interested in it to gain insight into a company and its operation. The balance-sheet is a
snapshot at a single point of time of the company’s accounts covering its assets, liabilities
and shareholder’s equity. The purpose of balance-sheet is to give user an idea of the
company’s financial position along with displaying what the company owns and owes. It is
important that all investor should know how to use, analyze and read balance-sheet. Profit &
Loss Account tells the net profit and net loss of a company and its appropriation.

In the case of AXIS BANK ,during fiscal year 2018, bank continued to grow and diversify
its assets base and revenue streams. Trend analysis of Profit & Loss Account and balance-
sheet shows the % change in items of P&L A/c and balance-sheet i.e.% change in 2018 from
2017. It shows that all items are increased mostly .

Ratio analysis of financial statement shows that bank’s current ratio is better than the quick
ratio and fixed/worth ratio. It means bank has invested more in current assets than the fixed
assets and liquid assets. Bank have given more advances to its customer and they have less
cash in their hand. Return on equity is better than the return on assets.

Thus, the ratio analysis shows that AXIS BANK’s financial position is good. Bank’s
liquidity position is fair but as compared to previous year it is going on decreasing.
Profitability is less as compared to previous year. Company performance is stable.

62
RECOMMENDATION AND SUGGESTION:

 The attention is required on the area of growth and profitability.

 To increase the profit of bank, bank should decrease their operating expenses and
increase their income.
 To increase its liquidity, bank should keep some cash in its hand instead of giving
more and more advances.
 Introduce quality consciousness and standardization of the work system and
procedures.
 Performance measure should not only cover financial aspects i.e. quantitatively
aspects but also the qualitatively aspects.

63
 BIBLIOGRAPHY

WEBSITES:
www.axisbank.com
www.RBI.org
www.profit.ndtv.com
www.wikipedia.org

NEWSPAPER:
THE ECONOMIC TIMES
DNA MONEY

BOOKS:
MANAGEMENT ACCOUNTING

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