A project Report on

STUDY ON AXIX BANK

Submitted to U.G. Department of Commerce Khallikote (Autonomous) College
Berhampur in partial fulfilment for the award of Bachelor of Degree in Commerce

By

Biswajit Choudhury

Exam Roll.no: 011803CM089

Class Roll.no : BC-18-019

Under the guidance of

Smt.Annapurna sahoo,

HOD, Department of Commerce

U.G. DEPARTMENT OF COMMERCE, KHALLIKOTE (AUTONOMOUS)

COLLEGE, BERHAMPUR

1
 Smt.Annapurna sahoo,
HOD, Department of Commerce,
Khallikote ( Autonomous) College,
Berhampur

CERTIFICATE

This is to certify that the project report entitled STUDY ON AXIX BANK is a record of
research done by Biswajit Choudhury during the period of study under my guidance and
supervision. This thesis has not formed the basis for the award of any degree, diploma,
fellowship or other similar title. It represents an independent work on the part of the candidate.

Berhampur

Date:

Signature of the guide

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 DECLARATION

I hearby declare that the thesis entitled STUDY OF LIQUIDITY ANALYSISI OF AXIX
BANK Submitted to U.G. Department of Commerce, Khallikote (Autonomous) College,
Berhampur for the award of Bachelor Degree in Commerce is a bonafide record of independent
work done by me under the guidance and supervision of of Smt.Annapurna sahoo, HOD of
Commerce, U.G. Department of Commerce, Khallikote (Autonomous) College, Berhampur and
that this work has not been submitted either in whole or in part elsewhere for any other degree.

Berhampur

Date:

Biswajit Choudhury
Signature of the Candidate

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 CONTENTS

Contents

CHAPTER-1 INTRODUCTION Page no.

1.1 Meaning 6
1.2 Types of liquidity ratio 7
1.3 Limitation 9
1.4 Summary 9
CHAPTER-2 METHODOLOGY
2.1 Introduction 11
2.2 Scope of the study 11
2.3 Source of data 11
2.4 Tools for data analysis 12
2.5 Limitation of the study 14
CHAPTER-3 HISTORY OF THE COMPANY
3.1 History 17
3.2 Change in name 18
3.3 Product & Service 20
3.4 Retail Loans 23
3.5 Cash Management Service 23
3.6 Board of Directors 29
CHAPTER-4 DATA ANALYSIS & INTERPRETATION 32-38
CHAPTER-5 CONCLUSION 39
BIBILOGRAPHGY 41

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CHAPTER – 1

INTRODUCTION
1.1 MEANING
1.2 TYPES LIQUIDITY RATIO
1.3 LIMITATION
1.4 SUMMARY

INTRODUCTION
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Financial statement analysis is defined as the process of identifying financial strengths and
weaknesses of the firm by properly establishing relationship between the items of the balance
sheet and the profit and loss account.

There are various methods or techniques that are used in analyzing financial statements, such as
comparative statements, schedule of changes in working capital, common size percentages, funds
analysis, trend analysis, and ratios analysis.

Financial statements are prepared to meet external reporting obligations and also for decision
making purposes. They play a dominant role in setting the framework of managerial decisions.
But the information provided in the financial statements is not an end in itself as no meaningful
conclusions can be drawn from these statements alone. However, the information provided in the
financial statements is of immense use in making decisions through analysis and interpretation of
financial statements.

1.1 MEANING

The short term creditors of a company like suppliers of goods of credit and commercial
banks providing short term loans are primarily interested in knowing the company’s ability to
meet its current or short term obligations as and when these become due. The short term
obligations of a firm can be met only when there are sufficient liquid assets. Therefore, a firm
must ensure that it does not suffer from lack of liquidity or the capacity to pay its current
obligation. If a firm fails to meet such current obligations due to lack of good liquidity
position, its goodwill in the market is likely to be affected beyond repair. It will result in a loss
of creditor’s confidence in the firm and may cause even closure of the firm. Even o a very high
degree of liquidity is not good for a firm because such a situation. Therefore it is very
important to have a proper balance in regard to the liquidity of the firm.

1.2 TYPES liquidity ratio

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A. Liquidity Ratios:

Liquidity ratios measure the short term solvency of financial position of a firm. These ratios are
calculated to comment upon the short term paying capacity of a concern or the firm's ability to
meet its current obligations. Following are the most important liquidity ratios.

 Current ratio
 Liquid / Acid test / Quick ratio
 Absolute Liquid Ratio

B. Activity Ratios:

Activity ratios are calculated to measure the efficiency with which the resources of a firm have
been employed. These ratios are also called turnover ratios because they indicate the speed with
which assets are being turned over into sales. Following are the most important activity ratios:

 Inventory / Stock turnover ratio

 Debtors / Receivables turnover ratio
 Average collection period
 Creditors / Payable turnover ratio
 Working capital turnover ratio

Current Ratio: - It may be defined as the relationship between current assets and current
Liabilities. This ratio is also known as working capital ratio, is a measure of general liquidity and
is most widely used to make the analysis of a short term financial position or liquidity of a firm.

Liquid Ratio: -Liquid ratio may be defined as the relationship between liquid assets current
liabilities. An asset is said to be liquid if it can be converted into cash within a short period
without loss of value.

Absolute Liquid Ratio: - Although receivables, debtors and bills receivable are generally more
liquid than inventories, yet there may be doubt regarding their realization into cash immediately

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or in time. Hence some authorities are of opinion that the absolute liquid ratio should also be
calculated together with current ratio and acid test ratio so as to exclude receivables from the
current assets and find out the absolute liquid ratio.

Stock Turnover Ratio: Stock turnover ratio and inventory turnover ratio are the same. This ratio
is a relationship between the cost of goods sold during a particular period of time and the cost of
average inventory during a particular period. It is expressed in number of times. Stock turnover
ratio/Inventory turnover ratio indicates the number of time the stock has been turned over during
the period and evaluates the efficiency with which a firm is able to manage its inventory. This
ratio indicates whether investment in stock is within proper limit or not.

Debtor Turnover Ratio: Debtors turnover ratio or accounts receivable turnover ratio indicates

the velocity of debt collection of a firm. In simple words it indicates the number of times average
debtors (receivable) are turned over during a year.

Creditor turnover ratio: It signifies the credit period enjoyed by the firm in paying
creditors. Accounts payable include both sundry creditors and bills payable. Same as debtors
turnover ratio, creditors turnover ratio can be calculated in two forms, creditors turnover ratio
and average payment period.

Working capital ratio: It indicates the velocity of the utilization of net working capital. This
ratio indicates the number of times the working capital is turned over in the course of a year.

1.3 LIMITATION
 Limited use of single ratio.
 Lack of adequate standards.

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  Inherent limitations of accounting.
 Change of accounting procedure.
 Window dressing.
 Personal bias.
 Incomparable.
 Absolute figures distortive.
 Price level changes.
 Ratios no substitutes.

1.4 SUMMARY
 Under this chapter, we have briefly studied about the meaning and different types of short
term solvency ratio which is used for analysis.

CHAPTER- 2
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 METHODOLOGY
2.1 INTRODUCTION
2.2 SCOPE OF THE STUDY
2.3 SOURCE OF DATA
2.4 TOOLS FOR DATA ANALYSIS
2.5 LIMITATION OF THE STUDY
2.6 SUMMARY

2.1 Introduction
This project is basically concerned with an analytical of evaluation of liquidity position of
“AXIS BANK.”. The analysis is covering the financial year and 2013-14,2014-15 and 2015-16
This chapter deals with scope of the study as well as the tools and techniques used for doing the
aforesaid analysis.

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2.2 Scope of the Study
Our study aims to analysis the liquidity position and its components of “AXIS BANK”. Since
““AXIX BANK” is one of most leading Private bank of the world and liquidity is highly
important to run business organization, we have gone through the evaluation of liquidity position
of this bank. Our study covers a period of 3 years, i.e., 2013-14,2014-15 and 2015-16

2.3 Sources of Data

Every project work is based upon two sources of data:-

i) Primary source
ii) Secondary source

Primary source involves direct involvement in the process of collection of data. Due to constraint
of time, it is not possible to collect such data. As such the entire project is based upon the
secondary source of data. The secondary source includes-

1. Annual report of “axis bank”.

2. Websites reference:-
a) www.google.com

This study covers a period of 2013-14,2014-15 and 2015-16

2.4 Tools for Data Analysis

For the sake of analysis and evaluation of liquidity of the sample company, we have used certain
ratios as described below. All these ratios have been calculated properly and interpreted. Also we
have intended to use graphs, charts, and diagrams on certain aspects when required.

RATIOS: -

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2.4.1 CURRENT RATIO:-
It may be defined as the relationship between current assets and current liabilities. It
is also known as working capital ratio. It is most widely used to make the analysis of
a short-term financial or liquidity of a firm.
Current Assets
Current Ratio =
Current Liabilities
A ratio equals or near to the rule of thumb of 2:1, i.e. current assets double the
current liabilities is considered to be satisfactory. It represents the “Margin of
Safety” available to the creditors and other current liabilities.
2.4.2 QUICK OR ACID TEST OR LIQUID RATIO:-
It may be defined as the relation between quick/liquid assets and current or liquid
liabilities. An asset is said to be liquid if it can be converted into cash with a short
period without loss of value.
Quick ∨Liquid Assets
Quick Ratio =
Current iabilities∨Liquid Liabilities
Liquid Assets = Current assets – (Inventories + Prepaid expense)
Liquid Liabilities = Current Liabilities – Bank overdraft
As a rule of thumb or as a convention quick ratio of 1:1 is considered satisfactory. It
is generally thought that if quick assets are equal to current liabilities then the
concern may be able to meet its short term obligation.
2.4.3 ABSOLUTE LIQUID RATIO
It is the relationship between absolute liquid assets and current liabilities. An absolute
liquid asset includes cash in hand, cash at bank and marketable securities.
Absolute Liquid Assets
Absolute liquid Ratio =
Current iabilities
The acceptable norm for this ratio is 50% or 0.5:1 or 1:2, Re. 1 worth absolute liquid
assets and considered to pay Rs. 2 worth of Current liabilities.
2.4.4 INVENTORY TURNOVER OR STOCK TURNOVER RATIO
It indicates the number of firms the stock has been turned over during the period and
evaluates the efficiency with which a firm is able to manage its inventory.
Cost of Goods sold
Stock Turnover Ratio =
Average stock

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 Opening Stock+ Closing Stock
Average Stock =
2
When the cost of goods sold is not given, the stock turnover ratio may be calculated
by dividing net sales by average stock.
Net Sales
Stock Turnover Ratio =
Average stock
When opening inventory is not given, the closing inventory may be taken as average
inventory.
A high stock velocity indicates efficient management of inventory because more
frequently the stocks are sold, the lesser amount of money is required to finance the
inventory. A low stock velocity indicates an inefficient management of inventory.
2.4.5 Debtors Turnover Ratio
Debtors Turnover Ratio indicates the velocity of debt collection of the firm. It
indicates the number of times average debtors are turned over during a year.
Net Annual Credit Sales
Debtors Turnover Ratio =
Average Trade Debtors
Trade Debtors = Sundry Debtors + Bills Receivables
OpeningTrade Debtors+Closing Trade Debtors
Average Trade debtors =
2
If credit sales is not given, total sales is taken for the calculation of debtors turnover
ratio.
The higher the value of debtors turnover the more liquid are the
debtors. Low debtors turnover implies that the debtors are less liquid.

2.4.6 Creditors Turnover Ratio: -

In the course of business operations, a firm has to make credit purchase and insure
short-term liabilities. A supplier of goods, i.e., creditors is naturally interested in
finding out how much time the firm is likely to take in repaying its trade creditors.

13
 This ratio shows what period will be required to retire the current liabilities and
creditors at the current rate of turnover.
Net Annual Credit Purchases
Creditors Turnover Ratio =
Average Trade Creditors
Trade Creditors = Sundry Creditors + Bills Payable
OpeningTrade Creditors+ ClosingTrade Creditors
Average Trade Creditors =
2
Higher the creditor’s velocity better it is or otherwise lower the creditor’s velocity,
less favorable are the results.
2.4.7 Working Capital Turnover Ratio
It indicates the velocity of the utilization of net working capital. This ratio indicates
the number of times the working capital is turned over in the course of a year.
Cost of sales
Working Capital Turnover Ratio =
Average WorkingCapital
OpeningWorking Capital+Closing Working Capital
Average Working Capital =
2
If cost of sales is not given, the figure of sales is considered and if opening working is
not given, the closing working capital will be used.
Sales
Working Capital Turnover Ratio =
Net Working Capital
A higher ratio indicates efficient utilisation of working capital and low indicates
otherwise. But a very high working capital turnover ratio is not good situation for
any firm.

2.5 LIMITATION
Our study suffers from the following limitation: -

 The annual report published by the company for 2 years only have been consider for the
purpose of evaluation

CHAPTER- 3

14
 HISTORY OF THE COMPANY

3.1 History
3.2 Change in name
3.3 Product & Service
3.4 Retail Loan
3.5 Cash Management Service
3.6 Board of Director

History of the Company

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Introduction

Axis Bank India, the first bank to begin operations as new private banks in 1994 after the
Government of India allowed new private banks to be established. Axis Bank was jointly
promoted by the Administrator of the specified undertaking of the Unit Trust of India (UTI-I),
Life Insurance Corporation of India (LIC) and General Insurance Corporation Ltd. Also with
associates viz. National Insurance Company Ltd., The New India Assurance Company, The
Oriental Insurance Corporation and United Insurance Company Ltd.

Axis Bank in India today is capitalized with Rs. 282.65 Crores with 57.05% public holding other
than promoters. It has more than 574 branch offices and Extension Counters in the country with
over 2428 Axis Bank ATM proving to be one of the largest ATM networks in the country. It
commits to adopt the best industry practices internationally to achieve excellence. It has
strengths in retail as well as corporate banking.

By the end of June 2007, Axis Bank in India had over 60 lakhs debit cards. This is the first bank
in India to offer the AT PAR Cheque facility, without any charges, to all its Savings Bank
customers in all the places across the country where it has presence.

With the AT PAR cheque facility, customers can make cheque payments to any beneficiary at
any of its existence place. The ceiling per instrument is Rs. 50,000/-

The latest offerings of the bank is the Australian Dollar and Canadian Dollar variants of the
international Travel Currency Card along with the US Dollar, Euro and Pound Sterling variants.

The Travel Currency Card is a signature based pre-paid travel card which enables travelers
global access to their money in local currency of the visiting country in a safe and convenient
way. Along with this the bank has also launched the credit cards in silver and gold variants
which can be accessed in 60 cities across the country.

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The bank has also raised its reach to 341 cities, towns and villages. The bank has the outstanding
deposit base of more than Rs. 61,000 crores with over 65 lakh accounts.

HISTORY
Established in 1994, the Axis Bank Ltd was the first private sector bank in the liberalization era
with its registered office at Ahmadabad and corporate office in Mumbai. The main promoters of
this bank were Unit Trust of India, LIC of India, GIC of India (General Insurance Corporation).
Within the span of 10 years, this bank has had a momentous growth .Today it has 350 branches
and extension counters across the country .Each branch is fully computerized with a centralized
database at Mumbai and disaster management backup at Bangalore. The branches are designed
in such a manner as to offer the full range corporate and retail banking, international banking,
treasury management, merchant and investment banking. All in all the clients are assured of
efficient and hassle free banking.

Axis Bank was formed as UTI when it was incorporated in 1994 when Government of
India allowed private players in the banking sector. The bank was sponsored together by the
administrator of the specified undertaking of the Unit Trust of India, Life Insurance Corporation
of India (LIC) and General Insurance Corporation ltd. and its subsidiaries namely National
insurance company ltd., the New India Assurance Company, the Oriental Insurance Corporation
and United Insurance Company Ltd. However, the name of UTI was changed because of the
disagreement on terms and conditions of the bank authority over certain stipulations including
royalty charged over the name from UTI AMC. The bank also wanted to have a new name from
its pan-Indian as well as international business perspective. So from July 30, 2007 onwards the
UTI bank was named as Axis Bank.

Change in Name

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UTI Bank decided to change its name to Axis Bank.

REASONS : The change in the bank's name follows a year-long tiff between UTI Mutual Fund
and the bank over the use of the brand name. UTI brand was given in 1994 by its promoters and
UTI Bank could use the brand only till January 2008 as per Govt directives. Many unrelated
shareholder entities like UTI Technological Services, UTI Investor Services and UTI Securities
were carrying the UTI brand. The board feels that the need for the change of name has arisen
from the brand confusion that the UTI brand generates

NEW LOGO: The bank has retained the burgundy color, but has changed the logo. The logo
uses the alphabet 'A' from the word Axis. The logo depicts a strong growth path for the bank
supported by a strong base, indicating that the bank is moving on from a position of strength.
Earlier, the bank's logo used the letters U, T and I.

The bank is likely to spend around Rs50 crore in the re-branding exercise.

UTI Bank: Now Axis Bank

The name of the country's third largest private sector lender UTI Bank has been officially
changed to the Axis Bank Ltd with effect from 31st July, 2007. Some reasons for change in
name of 'UTI Bank to Axis Bank' - are:

1) The UTI brand is owned by UTI Asset Management Company.

2) UTI Bank to shed its brand name after the split of the erstwhile UTI. Though UTI was a
government institution, its subsidiary UTI Bank has been categorized as a private sector bank,
according to RBI guidelines.

18
3) UTI Bank was started as a part of the entire UTI (Unit Trust of India) Group. But, when there
were losses incurred by UTI ( due to failure of US 64 scheme probably ) because of other
reasons, it was decided by RBI that UTI Bank should be separated as private sector bank, as
several unrelated entities were using the UTI brand.

4) The change of name to Axis Bank has been cleared from shareholders and regulators.

5) The government still has a 26% stake in UTI Bank. This stake is up for sale.

Regarding the re-branding strategy, Executive director (corporate strategy) of the bank R
Ashok Kumar said the bank had hired advertising firm O&M to help in creating awareness of the
new brand across the country. The bank would change logo and color of logo, he had said,
adding, the bank is likely to spend around Rs 50 crore (Rs 500 million) in the re-branding
exercise

PRODUCTS AND SERVICES

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Facilities

1) Axis Bank is fully computerized. Which gives less possibility of errors and accuracy is
increased. Computerization also saves time which in turn improves customer service also.

2) Axis bank have also introduced Internet banking and Telebanking

Wherein you can do all your normal banking transactions sitting at home. Like in telebanking
you can inquire balances on phone. Give cheque book request on phone, etc. In internet banking
you can view your balances and statement on net. Transfer funds from one account to another
through net. Do on line shopping. Pay your Axislity bills, LIC premium through net. Do railway
reservations on net. Your bank gets debited for the same. These facilities are password protected.
So that security is maintained and no one can misuse the same.

3) One of the major breaks through in Axis banking is ATM facility. ATM gives you access to
your banking needs like withdrawal and deposits, balance inquiry, 24 hrs, 365 days of the year.
Irrespective of wherever you are you can transact from any of the ATMs. Axis bank have tie up
with service providers like Visa and MasterCard wherein customer holding ATM card of Axis
bank can withdraw from any other bank ATM also.

4) Now Online Banking or anywhere banking has also started in India. Wherein all the branches
of a particular bank are networked across the Country having one centralized database. This
gives advantage to the Customer of one branch to transit in any of the branches of that bank. For
e.g. Customer having an account in Mumbai branch of Axis Bank can also operate his account
from Delhi or Chennai branch of Axis Bank.

5) Mobile banking facilities with SMS alerts.

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6) NRI services

7) Financial advisory services like sales of various Mutual funds, RBI bonds, Infrastructure
bonds.

8) Retail loans like personal, housing, vehicle, consumer loans, etc.

Hassle-free Current Account for a lifetime:

After completing the necessary paperwork activity the client with a current
account can look forward to the following facilities:-

ATM Network:

Proprietary concerns are given free ATM cards to enable them to access their account at
anytime at the various ATM centre‟s across th the ATMs against the MasterCard {domestic
/international}

Overdraft facility:

The current account holder can avail of overdraft facility against fixed deposits,
Axis Schemes and Demat shares.

21
Foreign Remittances.

The account holder can make remittances abroad with ease.

Instantaneous Transfers

Funds can be transferred with great speed across the various Axis branches
spread across the country.

7 Day banking

At select branches, the account holder can do his banking on all 7 days of the
week .Thus the customer is assured of non-stopnking and smooth running of business
transactions.
Tele banking

Tele banking is another innovative service for the convenience of the client. This allows
him instant access to his account. It involves a wide range of services over the phone. The
account holder can get account information, give instructions for stop payment, make a request
for cheque book inquire about interest rates and foreign exchange rates.

Connect Net Banking

This is another revol Axis nary feature that brings the bank right up to the desktop of the
holder. He can look up the status of the account, query and undertake a wide range of financial
transactions. All this with a simple click of the mouse!

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A world of convenience at no extra charges!

No wonder then that the holder finds himself laughing all the way up to the Bank!

Retail Loans
Personal Loans from Axis Bank

Want to go on your dream holiday or want to buy the latest lifestyle gizmo. Want to gift your
wife a lovely diamond ring or have a wedding in the family. Maybe your house needs renovation
or your daughter / son has obtained admission to a medical college. These are moments in life
when you may need a helping hand. That's when you can rely on Axis Bank Personal Loan. We
offer personal loans to meet all your personal requirements.

Cash Management Services

Our Offering
In today's competitive marketplace, effectively managing cash flow can make the difference
between success and failure. The cash flow solAxisons of the Axis give you maximum control
over this vital asset. Whether you do business locally or throughout India, they can provide you
with innovative, integrated cash management solAxisons tailored to your specific needs. Cash
Management enables the efficient Axislization of your receivables through coordinated
management of payments, collections and balances in your accounts. The objectives are to
reduce costs, enhance control and optimize returns by leveraging Banking expertise for mutual
gains.

 Managing Receivables: Collections

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  Managing Payables: Payments

 Managing Taxes: CDBT / CBEC Collections

 Managing Information: MIS, IT Support & Services

 Managing Resources: Liquidity Management

Axis Bank's Cash Management Services is based on an extremely robust technology capable
to cater to collections or payment's requirements of: Corporate, Banks and Axislity Service
providers.

Collection SolAxisons:

Managing Receivables: Collections

Axis Bank facilitates faster collections by enabling quick realization of local and
upcountry cheques and pooling the funds in a central account. We provide the following
collection products:

Local Cheque Collections (LCC):

 LCC enables you to realize funds (on an assured day) through local cheques payable
within the purview of local clearing. The bank provides these services at Axis Bank
Network: 171 Locations with Courier Pickup facility

 Co-Ordinator Network: Locations with Courier Pickup facility can be added as per

24
 your business requirements

Upcountry Cheque Collection (UCC) :

As collecting bankers, they provide you service relating to:

 Public/Rights Issues

 Private Placements

 Buyback offers

In this current scenario of cut-throat competition, Axis Bank has designed its products to
minimize the issues faced by you in the area of fund management and reconciliation. Our aim is
to reduce the cost, time and efforts faced by corporate in collection and payment issues. The
bank provides you complete solAxisons to all your CMS needs to enable you to devote more
time and effort towards improving your business.

Bulk Collections - Axislity Bills / PDCs Management

Axis Bank, also offers a solAxison to meet Bulk Collection Requirements i.e. Post Dated
Cheques, Bulk Collections through Cheque clearing or ECS debit services, etc. The Bank
processes collections in a convenient and efficient way to avoid any reconciliation issues.

25
Payment SolAxisons

Payable at Par cheque:

Local cheques can be deposited at all Axis Bank locations, absolutely free of cost. This
makes us a universal customer of Axis Bank and eliminates the need for opening and tracking
separate accounts. Bulk Payments with Remote Printing & Dispatch Facility.

This enables you to avail bulk Demand drafts at all Axis Bank locations. You can also
avail online paid / unpaid status DDs purchased from any of its branches.

Statutory Payments

You can make statutory payments like taxes, Axislity bills, etc. within a committed time
frame at any of our branches on a regular basis which is executed through our dedicated HUB

/Dividends / Interest / Principal / Refund Order Payments

Dividends / Interest / Refund Order Payments / Redemption

AXIS Bank has launched its Centralized Bulk Payment Module that offers the following
value:

 Centralized maintenance of Master data for every client

26
  Real-time clearing activity.

 Online Validation with Master Data

 Daily Paid - Unpaid data.

 Comprehensive MIS.

 Prevention of Fraudulent Payments.

Electronic Clearing Services

Credit ECS: The bank undertakes electronic clearances of credit for dividend, interest,
salary, pension, I-T Refund orders and other payments.

Debit ECS: They ensure faster clearance of telephone and electricity billings,
loan installments, PF subscriptions, etc.

You can enjoy the benefits of reduced administration costs, avoid loss of instruments and
enhanced customer service they ensure efficient fund management, reduced delays and easy
assessment of your funds position.

Managing Taxes - CBDT / CBEC Collections

AXIS Bank is authorized by Reserve Bank of India to conduct Government Business i.e.
collection of Income Tax, Corporation Tax, etc through 199 designated branches across the
country. They are also authorized to collect Excise and Service Tax through various designated
branches in Delhi, Mumbai and Bangalore.

27
Issue Management

Managing Resources: Liquidity Management

The Bank lets you achieve maximum returns on excess liquidity and optimize overdraft
charges on your account. It comprises of the Auto Sweep, which allows movement of debit and
credit balances of your various Current Accounts. They also have Financial Advisory Services to
make your money work for you.

Your Benefits

Cash flow management: Provides better management and forecasting of cash flow through the

host of services.

Optimized returns: Through the coordinated management of payments, receivables and cash
balances, you are able to reduce interest charges and optimize returns on your deposits and
investments.

Increased efficiency and productivity: Offers easy and convenient means to perform online
banking (such as cheque services and funds transfer), bulk payments and collections, etc. -
leaving your staff with more time for other tasks.

Better control: Empowered by our CMS, you now enjoy greater control over your transactions,
funds placement and the management of your various bank accounts.

Enhanced security: Advanced security features are built into our systems to ensure end-to-end
security and confidentiality, as well as control over payment processing.

28
 Board of Directors

The Bank has 9 members on the Board. Dr. P. J. Nayak is the Chairman and
Managing Director of the Bank.

The members of the Board are:

Dr. P. J. Nayak Chairman & Managing Director

Shri Surendra Singh Director

Shri N.C. Singhal Director

Shri A.T. Pannir Selvam Director

Shri J.R. Varma Director

Dr. R. H. Patil Director

Smt. Rama Bijapurkar Director

Shri R B L Vaish Director

29
 Shri S. Chatterjee ExecAxisve Director

Office Timings:

Except for the IT department which works for 24 hours in shifts all the remaining
departments and branches work from Monday-Saturday in 9.00am-5.00pm single shifts.

Division of work, authority and responsibility:

The corporate head office in Mumbai is the central controlling authority. The different
departments in any branch are accountable to their respective heads, who are in turn under the
head office. There is a systematic co-ordination between the various activities of each branch
and also a trouble-shooting mechanism to attend to unforeseen problems. Besides there is the
Public Relations Department to address the problems of the general public.

MISSION, POLICIES & OBJECTIVES

Mission and policies:

 Customer services and product innovation to meet the diverse needs of the
individual and corporate clientele.

 Continuous up gradation of technology while maintaining human values.

 Progressive globalization and achieving international standards.

 Efficiency and effectiveness based on ethical practices.

30
Objectives:

The main objective of Axis Bank is to understand the financial needs of each
client.

Investing money is always a complicated decision .This is where the Axis bank offers “F
Advisory Services” Axis. On They according to tailor the needs of each their individual. They
sol diversify and spread the risk of the investment portfolio to ensure that the client spends the
rest of

his life comfortably free of worries.

The main objective is to explain to the client what his money can do for him.
They help in profiling the investment horizon, risk tolerance and investment
objectives. Thus investing in Axis means investing in total peace of mind.

31
 CHAPTER.:- 4

DATA ANALYSIS AND INTERPRETATION

Introduction
This chapter deals with the analysis part of the study. Since we have used certain ratios for our
analysis, the ratios have been calculated and interpreted below followed by definite tables and
graphs. The sources are taken from the annual report of AXIS BANK. and the amounts are in Rs.
In lacs.

4.1 ANALYSIS
The financial data as collected from the annual reports of AXIS BANK has been analyzed and
interpreted below and the figure are in lacs

1. Calculation of Current Ratio

Table 4.1

PARTICULARS 2013-14 2014-15 2015-16

Current Assets 3718538874 4495248932 4941053652
Current Liabilities 3450244017 4172558792 4723027108
Current Ratio 1.08 1.08 1.046

32
 4941053652
5000000000 4723027108
4495248932
4500000000 4172558792

4000000000

3500000000

3000000000
2013-14
2500000000 2014-15
2015-16
2000000000

1500000000

1000000000

500000000
1.081.046
0
CURRENT ASSETS CURRENT LIABILITY CURRENT RATIO

Graph-4`1

During the above analysis it is clear that the current asset for AXIS BANK was Rs in 2011-12,
Rs 3718538874 in 2013-14, Rs 4495248932 in 2014-15, Rs 49410583652 in 2015-16 and Rs
6673985660 in respectively. The current liabilities are Rs 3450244017 in 2013-14, Rs
4172558792 in 2014-15 and Rs 4723027108 in 2015-16 respectively. And the current ratio was
1.08,1.08, 1.046, in three consecutive year. According to the rules of thumb 2:1 is considered as
quite satisfactory. But from the above analysis the current ratio is unsatisfactory. So the liquidity
position of the business is unsatisfactory.

33
2.Calculation of Quick or Acid Test or Liquid Ratio

Table-4.2

PARTICULARS 2013-14 2014-15 2015-16

Liquid Assets 1417871290 1684418635 1553316423
Current Liabilities 3450244017 4172558792 4723027108
Current Ratio 0.41 0.41 0.33

Graph-4.2

0.41 0.41
0.45

0.4 0.33000000000000
1
0.35

0.3
2013-14
0.25 2014-15
2015-16
0.2

0.15

0.1

0.05

0
LIQUID RATIO

During the above analysis it is clear that the liquid asset for AXIX BANK was Rs 1417871290 in
2013-14, Rs 1684418635 in 2014-15 and Rs 15533316423 in 2015-16 respectively. The current
liabilities are Rs 3450244017 in 2013-14, Rs 4172558792 in 2014-15 and Rs 4723027108 in
2015-16 respectively. And the liquid ratio was 0.41, 0.41, and 0.33 in THREE consecutive year.
According to the rules of thumb 1:1 is considered as quite satisfactory. But from the above
analysis the liquid ratio is unsatisfactory. So the liquidity position of the bank is unsatisfactory.

34
 3.Calculation of Absolute Liquid Ratio

Table-4.3

PARTICULARS 2013-14 2014-15 2015-16

Absolute liquid Assets 282386946 360990318 333254404
Current Liabilities 3450244017 4172558792 4723027108
Current Ratio 0.081 0.086 0.071

Graph-4.3

0.1 2013-14
0.08 2015- 2014-15
0.06 16
2015-16
0.04 2014-
0.02 15
0 2013-
14
ABSOLUTE LIQUID RATIO

During the above analysis it is clear that the absolute liquid asset for AXIS BANK was Rs
282386946 in 2013-14, Rs 360990318 in 2014-15, Rs 333254404 in 2015-16 respectively. The
current liabilities are Rs 3450244017 in 2013-14, Rs 4172558792 in 2014-15 and Rs
4723027108 in 2015-16 respectively. And the absolute liquid ratio was 0.081, 0.086, and 0.071
in three consecutive year. According to the rules of thumb 0.5:1 is considered as quite
satisfactory. But from the above analysis the absolute liquid ratio is unsatisfactory. So the
liquidity position of the business is unsatisfactory.

4.Creditor Turnover Ratio

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 Table- 4.4

PARTICULARS 2013-14 2014-15 2015-16

Net annual credit 318287135 364858212 421358380
purchase
Average trade 502909425 650246057 894923239
creditor
CTR 0.63 0.56 0.47
Graph-4.4

0.47

2015-16
0.56 2014-15
TURNOVER RATIO
2013-14
0.630000000000
001

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7

During the analysis, the Net credit purchase of last three year was Rs. 318287135 in the year of
2013-14, Rs 364858212 in the year 2014-15 and Rs. 421358380 in the year of 2015-16, and its
Average Trade creditors are 502909425, Rs 650246057 and Rs 894923239 in 2013-14, 2014-15
and 2015-16. And creditor turnover ratio are 0.63,0.56, and 0.47 respectively. Here, it shows the
trend of in decreasing in the collection of money from the debtor and it is a good significance for
the development of the company.

36
5. Debtor Turnover Ratio

Table- 4.5

PARTICULARS 2013-14 2014-15 2015-16

Net annual credit sales 306411554 354785977 409880364
Average trade debtor 2 300667584 2810830297 3387737229
DTR 1.01 0.126 0.13

Graph-4.5

1.2
1.01

0.8
2013-14
2014-15
0.6 2015-16

0.4
During
0.126 0.13
the 0.2

0
LIQUID RATIO
analysis, the Net credit sale of last three year was Rs 306411554 in the year of 2013-14Rs
354785977 in 2014-15 and Rs 409880364 in 2015-16 and its Average Trade debtors are Rs
300667584, Rs 2810830297 and Rs 3387737229 in 2013-14, 2014-15 and 2015-16. And debtor
turnover ratio is 1.01, 0.126 and 0.13 respectively. Here, it shows the trend of in increasing in the
collection of money from the debtor and it is a good significance for the development of the
company.

37
 CONCLUSION
During the above analysis it is clear that the current asset for AXIS BANK was Rs in 2011-
12, Rs 3718538874 in 2013-14, Rs 4495248932 in 2014-15, Rs 49410583652 in 2015-16 and Rs

38
6673985660 in respectively. The current liabilities are Rs 3450244017 in 2013-14, Rs 4172558792
in 2014-15 and Rs 4723027108 in 2015-16 respectively. And the current ratio was 1.08,1.08, 1.046,
in three consecutive year. According to the rules of thumb 2:1 is considered as quite satisfactory.
But from the above analysis the current ratio is unsatisfactory. So the liquidity position of the
business is unsatisfactory.

 During the above analysis it is clear that the liquid asset for AXIX BANK was Rs
1417871290 in 2013-14, Rs 1684418635 in 2014-15 and Rs 15533316423 in 2015-16
respectively. The current liabilities are Rs 3450244017 in 2013-14, Rs 4172558792 in
2014-15 and Rs 4723027108 in 2015-16 respectively. And the liquid ratio was 0.41, 0.41,
and 0.33 in THREE consecutive year. According to the rules of thumb 1:1 is considered as
quite satisfactory. But from the above analysis the liquid ratio is unsatisfactory. So the
liquidity position of the bank is unsatisfactory.
 During the above analysis it is clear that the absolute liquid asset for AXIS BANK was Rs
282386946 in 2013-14, Rs 360990318 in 2014-15, Rs 333254404 in 2015-16 respectively.
The current liabilities are Rs 3450244017 in 2013-14, Rs 4172558792 in 2014-15 and Rs
4723027108 in 2015-16 respectively. And the absolute liquid ratio was 0.081, 0.086, and
0.071 in three consecutive year. According to the rules of thumb 0.5:1 is considered as
quite satisfactory. But from the above analysis the absolute liquid ratio is unsatisfactory. So
the liquidity position of the business is unsatisfactory.
 During the analysis, the Net credit purchase of last three year was Rs. 318287135 in the
year of 2013-14, Rs 364858212 in the year 2014-15 and Rs. 421358380 in the year of
2015-16, and its Average Trade creditors are 502909425, Rs 650246057 and Rs 894923239
in 2013-14, 2014-15 and 2015-16. And creditor turnover ratio are 0.63,0.56, and 0.47

respectively. Here, it shows the trend of in decreasing in the collection of money from the
debtor and it is a good significance for the development of the company.

 During the analysis, the Net credit sale of last three year was Rs 306411554 in the year of
2013-14, Rs 354785977 in 2014-15 and Rs 409880364 in 2015-16 and its Average Trade
debtors are Rs 300667584, Rs 2810830297 and Rs 3387737229 in 2013-14, 2014-15 and
2015-16. And debtor turnover ratio are 1.01, 0.126 and 0.13 respectively. Here, it shows

39
 the trend of in increasing in the collection of money from the debtor and it is a good
significance for the development of the company

4.3 SUMMARY
Hence the liquidity position of the Axis Bank is quite unsatisfactory in every ground of the liquidity
ratio.

BIBLIOGRAPHY

40
www.google.com
www.wikipedia.com
www.yahoo.com

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