A project report on

FINANCIAL STATEMENT ANALYSIS OF AXIS BANK LTD.

Project Report submitted in partial fulfilment of the requirements
of the degree of

Master of Business Administration

By

RHITIQ PATTNAIK
Registration No. 200402100004

GUIDED BY
Dr. Pramod Kumar Patjoshi

CENTURION UNIVERSITY OF TECHNOLOGY & MANAGEMENT

SCHOOL OF MANAGEMENT

BBSR, ODISHA, INDIA

2020-22

1
 CONTENT

INTRODUCTION 03-07

COMPANY PROFILE 08

RESEARCH METHODOLOGY 09-11

ANALYSIS AND INTERPRETATION 12-28

COMPERATIVE DATA 12-16

COMMON SIZE DATA 16-19

TREND ANALYSIS 19-25

FINANCIAL RATIO 25-28

2
 INTRODUCTION

Financial Statement Analysis is a method of reviewing and analysing a company’s

accounting reports in order to judge its past, present or projected future performance. The
main advantage of financial statement analysis is to understand and diagnose the information
contained in financial statement with a view to judge the profitability and financial soundness
of the firm, and to make forecast about future prospects of the firm. The paper attempted to
analyse the financial statements and measure the performance in terms of assets utilization,
and profitability. In detail the research methodology used for the study that has focused on
the past and present performance of Axis Bank Ltd. The study purely relies on secondary
data, which were collected for a period of five years (march016 - march 2021) from the
audited annual reports of the company and maintained and made available by organization.
In order to know the performance of the company study is done with the help of tools and
techniques like trend analysis, common size analysis etc. This study reveals that financial
strengths and weaknesses of the company over the study period. After the analysing financial
statements it ascertained that company is financially sound and demonstrated strong business
momentum in India. Revenue is growing faster during last few years. Company has achieved
key priorities for the past years despite of challenges around.

A financial statement is the combination of the three major reports on a business. It contains
the cash flow statement, the income statement and the balance sheet of the business. All three
together produce an overall picture of the health of the business. The financial statement
determines if a business has to ability to repay loans, if it has the cash flow to meet bills and
purchase stock. It will also tell from where the business is generating cash and where the
cash goes. The financial statement tells if the business is profitable, if it will stay profitable
and if there are any large problems looming, such as a continuous drop in sales over time.
Reading the financial statement will give an overall view of the condition of the business and
if there are any warnings signs of possible future problems. A bank or other such institution
will look to the financial statement as the first indicator of how the business is performing
and if there is a need for further investigation. Every business will ready a financial statement
to go with their end of year results, to give interested parties the overview of how the
business is functioning. If a business is looking to increase credit facilities with a bank or
trying to raise capital for an expansion, it will produce a financial statement for the end of a
fiscal quarter or the most recent month. When preparing a financial statement for such
purposes the best practice is to use general accountancy language, understood by all parties.
3
A financial statement that may accompany an end of year report and read just by employees
is often in terms familiar to just those involved. Often a government body may request a
financial statement for tax purposes and the company will need to produce one of high
quality using generally accepted guidelines. A bank or investors may also request a financial
statement without warning, if they are concerned about the profitability or otherwise of the
company. For these reason alone it is vital for any business to keep good and current records
so that a financial statement is easy and quick to produce.

Financial Statement Analysis is a method of reviewing and analysing a company’s

accounting reports (financial statements) in order to judge its past, present or projected future
performance. This process of reviewing the financial statements allows for better economic
decision making. Financial analysis (also referred to as financial statement analysis or
accounting analysis or Analysis of finance) refers to an assessment of the viability, stability
and profitability of a business, sub-business or project. It is performed by professionals who
prepare reports using ratios that make use of information taken from financial statements and
other reports. These reports are usually presented to top management as one of their bases in
making business decisions. Financial analysis may determine if a business will:

Continue or discontinue its main operation or part of its business; Make or purchase certain
materials in the manufacture of its product; Acquire or rent/lease certain machineries and
equipment in the production of its goods; Issue stocks or negotiate for a bank loan to increase
its working capital; Make decisions regarding investing or lending capital; Make other
decisions that allow management to make an informed selection on various alternatives in the
conduct of its business.

Globally, publicly listed companies are required by law to file their financial statements with
the relevant authorities. As financial statements are prepared in order to meet requirements,
the second step in the process is to analyse them effectively so that future profitability and
cash flows can be forecasted.

Financial analysis of a company should include an examination of the financial statements of

the company, including notes to the financial statements, and the auditor's report. The
auditor's report will state whether the financial statements have been audited in accordance
with generally accepted auditing standards. The report also indicates whether the statements
fairly present the company's financial position, results of operations, and changes in financial
position in accordance with generally accepted accounting principles. Notes to the financial

4
statements are often more meaningful than the data found within the body of the statements.
The notes explain the accounting policies of the company and usually provide detailed
explanations of how those policies were applied along with supporting details. Analysts often
compare the financial statements of one company with other companies in the same industry
and with the industry in which the company operates as well as with prior year statements of
the company being analysed.

Comparative financial statements provide analysts with significant information about trends
and relationships over two or more years. Comparative statements are more significant for
evaluating a company than are single-year statements. Financial statement ratio is additional
tools for analysing financial statement.

Meaning of Financial Statement Analysis:

The term ‘financial analysis’, also known as analysis and interpretation of financial
statements’, refers to the process of determining financial strengths and weaknesses of the
firm by establishing strategic relationship between the items of the balance sheet, profit and
loss account and other operative data.

The analysis and interpretation of financial statements is essential to bring out the mystery
behind the figures in financial statements. Financial statements analysis is an attempt to
determine the significance and meaning of the financial statement data so that forecast may
be made of the future earnings, ability to pay interest and debt maturities (both current and
long-term) and profitability of a sound dividend policy.

The term ‘financial statement analysis’ includes both ‘analysis’, and ‘interpretation’. A
distinction should, therefore, be made between the two terms. While the term ‘analysis’ is
used to mean the simplification of financial data by methodical classification of the data
given in the financial statements, ‘interpretation’ means, ‘explaining the meaning and
significance of the data so simplified However, both’ analysis and interpretation’ are
interlinked and complimentary to each other Analysis is useless without interpretation and
interpretation without analysis is difficult or even impossible. Most of the authors have used
the term ‘analysis’ only to cover the meanings of both analysis and interpretation as the
objective of analysis is to study the relationship between various items of financial
statements by interpretation. We have also used the term ‘Financial statement Analysis or
simply ‘Financial Analysis’ to cover the meaning of both analysis and interpretation.

5
Users of financial statement:

The list of stakeholders in a company and interested in Financial Statement Analysis is pretty
long. Among them most important parties are –

 Management:

The management always looks for the safe survival of business and the maintenance of its
economic visibility and sustainable growth. For carrying out managerial activities, proper
planning, framing useful policies and strategies, taking appropriate decisions regarding
allocation of limited resources and exercising overall control are essentially required. For this
purpose, the management needs correct and reliable information drawn out of analysis of the
financial statements.

 Investors:

They look for steady return and the safety of their investment. The existing shareholders try
to know the profitability of the firm and its dividend policy. The potential stakeholders try to
be sure about the risk factor involved as compare to other businesses. They all apply
judiciousness at rationality in taking investment decisions. They have to decide correctly
whether to make further investment or to hold the existing investment or to sell out this.
Information emanating from financial statement analysis helps them to take decisions in this
respect.

 Bankers/ Lenders:

They need information as whether the recovery of their existing and proposed loans to the
firm will be possible in due time and whether they will get proper interest on such loans. A
firm’s profitability and solvency position are analysed to give this information.

 Suppliers and Trade Creditors:

They want to assess the profitability and short-term solvency of the firm to which they are
going to allow credit facilities. They want to ensure recovery of their dues on due dates.

 Employees:

They want information about the profitability and financial stability of their employer-firm.
They want to be sure regarding the regular payment of their remuneration and other
employment facilities including retirement benefits.

6
 Customers:

Usually the customers want to build up a long-term relationship and want a continuous
supply of quality products at a reasonable price. They have to judge the financial and
economic prospect of the supplier firm.

 Competitors:

For comparison of relative performance result they need information out of financial
statement analysis.

 Government:

It depends upon the financial statement analysis of a firm for different reasons like
assessment of the general/ economic condition of the firm, its position in the industry,
considering and applying national economic statistics, deciding tax matters etc.

 Research Scholars:

Researchers in the Accounting field require various information about different issues of
different firms. They depend upon the financial statement analysis of such companies.

 General Public:

Business concerns render service to the society as a whole. Creation of jobs, offering job
opportunities, development of infrastructural facilities, encouraging local suppliers, ensuring
quality product/ service at a reasonable price etc. are the examples of their benevolence.
Financial Statement Analysis gives information to the public about the financial prosperity or
range of activities of a business and indicates their trends.

7
Axis Bank Limited, formerly known as UTI Bank (1993–2007), is an Indian banking and
financial services company headquartered in Mumbai, Maharashtra. It sells financial services
to large and mid-size companies, SMEs and retail businesses.

The bank was found on 3rd December 1993 as UTI Bank, opening its registered office
in Ahmedabad and a corporate office in Mumbai. The bank was promoted jointly by the
Administrator of the Unit Trust of India (UTI), 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. The
first branch was inaugurated on 2nd April 1994 in Ahmedabad by Manmohan Singh, then
finance minister of India.

In 2001 UTI Bank agreed to merge with Global Trust Bank, but the Reserve Bank of
India (RBI) withheld approval and the merger did not take place. In 2004, the RBI put Global
Trust under moratorium and supervised its merger with Oriental Bank of Commerce. The
following year, UTI bank was listed on the London Stock Exchange. In the year 2006, UTI
Bank opened its first overseas branch in Singapore. The same year it opened an office
in Shanghai, China. In 2007, it opened a branch in the Dubai International Financial
Centre and branches in Hong Kong.

8
 RESEARCH METHODOLOGY

Objective of the study:

The study has the following objectives.

1. To provide theoretical framework for analysing financial statements.

2. To study the financial position of the company and current status of Axis Bank Ltd.

3. To understand the financial soundness of the company.

Sample size:

 Sample size is limited to financial data published in the annual reports of the Axis bank
Ltd.

Data collection:

 The Secondary data like annual reports of is collected from the company’s website.

 Secondary data collected from various books, journals and websites.

Tools and techniques used:

Financial Statement Analysis is done in different ways using various tools and techniques.
There are different users of financial analysis and they may be interested in some tools and
techniques and uninterested in the others. The various tools and techniques available for
financial statement are:

Common size analysis

Common size analysis, also referred as vertical analysis, is a tool that financial managers use
to analyse financial statements. It evaluates financial statements by expressing each line item
as a percentage of the base amount for that period. The analysis helps to understand the
impact of each item in the financial statement and its contribution to the resulting figure. The
technique can be used to analyse the three primary financial statements, i.e., balance sheet,
income statement and cash flow statement. In the balance sheet, the common base item to

9
which other line items are expressed is total assets, while in the income statement, it is total
revenues.

Formula for Common Size Analysis:

Common size financial statement analysis is computed using the following formula:
Percentage Base = (Amount of individual item /Amount of base item) *100

Comparative financial statement analysis

Comparative financial statements are the complete set of financial statements that an entity
issues, revealing information for more than one reporting period. The financial statements
that may be included in this package are: 39

 The income statement (showing results for multiple periods)

 The balance sheet (showing the financial position of the entity as of more than one balance
sheet date)

 The statement of cash flows (showing the cash flows for more than one period) Another
variation on the comparative concept is to report information for each of the 12 preceding
months on a rolling basis. Comparative financial statements are quite useful for the following
reasons:

 Provides a comparison of an entity's financial performance over multiple periods, so that

you can determine trends. The statements may also reveal unusual spikes in the reported
information that can indicate the presence of accounting errors.

 Provides a comparison of expenses to revenues and the proportions of various items on the
balance sheet over multiple periods. This information can be useful for cost management
purposes.

 May be useful for predicting future performance, though you should rely more on
operational indicators and leading indicators than on historical performance for this type of
analysis. It is customary to issue comparative financial statements with additional columns
containing the variance between periods, as well as the percentage change between periods.

Trend analysis

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Trend analysis involves the collection of information from multiple time periods and plotting
the information on a horizontal line for further review. The intent of this analysis is to spot
actionable patterns in the presented information. In business, trend analysis is typically used
in two ways, which are as follows:

 Revenue and cost analysis. Revenue and cost information from a company's income
statement can be arranged on a trend line for multiple reporting periods and examined for
trends and inconsistencies. For example, a sudden spike in expense in one period followed by
a sharp decline in the next period can indicate that an expense was booked twice in the first
month. Thus, trend analysis is quite useful for examining preliminary financial statements for
inaccuracies, to see if adjustments should be made before the statements are released for
general use.

 Investment analysis. An investor can create a trend line of historical share prices, and use
this information to predict future changes in the price of a stock. The trend line can be
associated with other information for which a cause-and-effect relationship may exist, to see
if the causal relationship can be used as a predictor of future stock prices. Trend analysis can
also be used for the entire stock market, to detect signs of an impending change from a bull
to a bear market, or the reverse. When used internally (the revenue and cost analysis
function), trend analysis is one of the most useful management tools available. When trend
analysis is being used to predict the future, keep in mind that the factors formerly impacting a
data point may no longer be doing so to the same extent. This means that an extrapolation of
a historical time series will not necessarily yield a valid prediction of the future. Thus, a
considerable amount of additional research should accompany trend analysis when using it to
make predictions.

Formula: Percent change = (Current year amount - Base year amount) ÷ Base year amount

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 ANALYSIS AND INTERPRETATION

1. COMPERATIVE ANALYSIS OF AXIS BANK LTD.:

The given below table elaborated the comparative analysis of Axis bank ltd. For the year
2019-20 and 2020-21.

Axis Bank    
Consolidated ------------------- in Rs. Cr. -------------------
Balance Sheet
  2019-20 2020-21 INCREASE/ INCREASE/
DECREASE (RS) DECREASE (%)
  12 mths 12 mths    
EQUITIES AND        
LIABILITIES
SHAREHOLDER'        
S FUNDS
Equity Share 564.34 612.75 48.41 9%
Capital
TOTAL SHARE 564.34 612.75 48.41 9%
CAPITAL
Revaluation 0 0 0 0%
Reserve
Reserves and 564.34 612.75 48.41 9%
Surplus
TOTAL 85,776.09 1,02,980.95 17204.86 20%
RESERVES AND
SURPLUS
TOTAL 85,776.09 1,02,980.95 17204.86 20%
SHAREHOLDERS

12
FUNDS
Minority Interest 113.56 173.75 60.19 53%
Deposits 6,42,157.2 7,07,623.42 65466.21 10%
1
Borrowings 1,55,180.1 1,52,248.72 -2931.45 -2%
7
Other Liabilities 44,080.45 46,685.74 2605.29 6%
and Provisions
TOTAL CAPITAL 9,27,871.8 10,10,325.3 82453.52 9%
AND 1 3
LIABILITIES
ASSETS        
Cash and Balances 84,959.27 51,808.57 -33150.7 -39%
with Reserve Bank
of India
Balances with 12,840.50 11,615.79 -1224.71 -10%
Banks Money at
Call and Short
Notice
Investments 1,55,281.6 2,25,335.77 70054.14 45%
3
Advances 5,82,958.8 6,35,070.69 52111.85 9%
4
Fixed Assets 4,394.34 4,329.69 -64.65 -1%
Other Assets 87,437.22 82,164.82 -5272.4 -6%
TOTAL ASSETS 9,27,871.8 10,10,325.3 82453.52 9%
1 3

INTERPRETATION:

13
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 Here total share capital was increased from 564.34 cr. to 612.75 cr. by 9% from 2019-
20 to 2020-21.
 Total reserve and surplus also increased by 20% from 2019-20 to 2020-21.
 Minority interest was also increased by a huge margin 53% which is from 113.56 cr.
to 173.75 cr. from 2019-20 to 2020-21.
 In 2019-20 the total share capital was 564.34 Cr. Which was increased by 9% to
612.75 Cr. In 2020-21.
 Total reserve and surplus was also increased by 20% as compared to the 2019-20
period.
 The borrowing was decreased by 2% as compared to the 2019-20 period.
 Cash and balance with reserve bank of India was decreased by 39% which is from
84959.27 cr. in 2019-20 to 51808.57 cr. in 2020-21.

Axis Bank
Consolidated Profit & ------------------- in Rs. Cr. -------------------
Loss account
2019-20 2020-21 INCREASE/ INCREASE/
  DECREASE (RS) DECREASE (%)

 
12 mths 12 mths    
 

14
 
INCOME        
Interest / Discount on 49,323.3 48,903.2 -420.08 -1%
Advances / Bills 0 2
Income from 11,279.3 12,584.8 1,305.54 12%
Investments 4 8
Interest on Balance with 1,098.71 1,039.78 -58.93 -5%
RBI and Other Inter-
Bank funds
Others 2,014.33 2,168.54 154.21 8%
Total Interest Earned 63,715.6 64,696.4 980.74 2%
8 2
Other Income 16,341.9 16,151.5 -190.47 -1%
9 2
Total Income 80,057.6 80,847.9 790.27 1%
7 4
EXPENDITURE      
Interest Expended 37,995.9 34,926.4 -3,069.50 -8%
4 4
Payments to and 5,819.96 2,168.54 -3,651.42 -63%
Provisions for
Employees
Depreciation 806.07 979.39 173.32 22%
Operating Expenses 11,439.7 16,026.9 4,587.23 40%
(excludes Employee Cost 2 5
& Depreciation)
Total Operating 18,065.7 19,174.8 1,109.11 6%
Expenses 6 7
Provision Towards 3,076.88 2,756.87 -320.01 -10%
Income Tax

15
Provision Towards 324.41 -259.18 -583.59 -180%
Deferred Tax
Other Provisions and 18,715.9 16,996.5 -1,719.39 -9%
Contingencies 3 4
Total Provisions and 22,117.2 19,494.2 -2,622.99 -12%
Contingencies 2 3
Total Expenditure 78,178.9 73,595.5 -4,583.37 -6%
2 5
Net Profit / Loss for The 1,878.75 7,252.39 5,373.64 286%
Year
Net Profit / Loss After EI 1,878.75 7,252.39 5,373.64 286%
& Prior Year Items
Minority Interest -25.64 -56.89 -31.25 122%
Consolidated Profit/Loss 1,853.11 7,195.50 5,342.39 288%
After MI And Associates
Profit / Loss Brought 25,117.5 27,125.8 2,008.30 8%
Forward 2 2
Total Profit / Loss 26,970.6 34,321.3 7,350.67 27%
available for 4 1
Appropriations
INTERPRETATION:

90,000.00
70,000.00
50,000.00
30,000.00
10,000.00
-10,000.00

16
  Income from investments increased in 2020-21 by 12% as compared to 2019-20.
 But the total income was increased by just 1%.
 Here depreciation was also increased by 22% which was 173.32 cr. more than the
year 2019-20.
 Total operating expenses were also increased by 6%.
 But the total expenditure was decreased from 78,178.92 cr. (2019-20) to 73,595.55 cr.
(2020-21)
 Net profit was increased by a huge margin of 286% which was from 1878.75 cr.
(2019-20) to 7252.39 cr. (2020-21)
2. COMMON SIZE ANALYSIS:

The given below table elaborated the common size analysis of Axis bank ltd. For the year
2019-20 and 2020-21.

Axis Bank

Consolidated Balance Sheet ------------------- in Rs. Cr. -------------------

  2019-20 2019- 2020-21 2020-

20(%) 21(%)

  12 mths   12 mths  

EQUITIES AND LIABILITIES        

SHAREHOLDER'S FUNDS        

Equity Share Capital 564.34 0.06 612.75 0.06

TOTAL SHARE CAPITAL 564.34 0.06 612.75 0.06

Revaluation Reserve 0 0.00 0 0.00

Reserves and Surplus 564.34 0.06 612.75 0.06

TOTAL RESERVES AND 85,776.09 9.24 1,02,980.95 10.19

SURPLUS

TOTAL SHAREHOLDERS 85,776.09 9.24 1,02,980.95 10.19

FUNDS

17
Minority Interest 113.56 0.01 173.75 0.02

Deposits 6,42,157.21 69.21 7,07,623.42 70.04

Borrowings 1,55,180.17 16.72 1,52,248.72 15.07

Other Liabilities and Provisions 44,080.45 4.75 46,685.74 4.62

TOTAL CAPITAL AND 9,27,871.81 100.00 10,10,325.33 100.00

LIABILITIES

ASSETS        

Cash and Balances with 84,959.27 9.16 51,808.57 5.13

Reserve Bank of India

Balances with Banks Money at 12,840.50 1.38 11,615.79 1.15

Call and Short Notice

Investments 1,55,281.63 16.74 2,25,335.77 22.30

Advances 5,82,958.84 62.83 6,35,070.69 62.86

Fixed Assets 4,394.34 0.47 4,329.69 0.43

Other Assets 87,437.22 9.42 82,164.82 8.13

TOTAL ASSETS 9,27,871.81 100.00 10,10,325.33 100.00

INTERPRETATION:

 Total shareholder’s fund was increased by 0.95%, which was from 85,776.09 cr. to
1,02,980.95 cr.
 But the borrowing amount was decreased by 1.65% which was from 1,55,180.17 cr
(2019-20) to 1,52,248.72 cr (2020-21)

Axis Bank

Consolidated Profit & Loss Account ------------------- in Rs. Cr. -------------------

18
  2019-20 2019- 2020-21 2020-
20(%) 21(%)
  12 mths   12 mths  

INCOME        

Interest / Discount on Advances / 49,323.30 77.41 48,903.22 75.59

Bills

Income from Investments 11,279.34 17.70 12,584.88 19.45

Interest on Balance with RBI and 1,098.71 1.72 1,039.78 1.61

Other Inter-Bank funds

Others 2,014.33 3.16 2,168.54 3.35

Total Interest Earned 63,715.68 100.00 64,696.42 100.00

Other Income 16,341.99 25.65 16,151.52 24.97

Total Income 80,057.67 125.65 80,847.94 124.97

EXPENDITURE        

Interest Expended 37,995.94 59.63 34,926.44 53.99

Payments to and Provisions for 5,819.96 9.13 2,168.54 3.35

Employees

Depreciation 806.07 1.27 979.39 1.51

Operating Expenses (excludes 11,439.72 17.95 16,026.95 24.77

Employee Cost & Depreciation)

Total Operating Expenses 18,065.76 28.35 19,174.87 29.64

Provision Towards Income Tax 3,076.88 4.83 2,756.87 4.26

Provision Towards Deferred Tax 324.41 0.51 -259.18 -0.40

Other Provisions and Contingencies 18,715.93 29.37 16,996.54 26.27

Total Provisions and Contingencies 22,117.22 34.71 19,494.23 30.13

Total Expenditure 78,178.92 122.70 73,595.55 113.76

19
 Net Profit / Loss for The Year 1,878.75 2.95 7,252.39 11.21

Net Profit / Loss After EI & Prior 1,878.75 2.95 7,252.39 11.21
Year Items

Minority Interest -25.64 -0.04 -56.89 -0.09

Consolidated Profit/Loss After MI 1,853.11 2.91 7,195.50 11.12

And Associates

Profit / Loss Brought Forward 25,117.52 39.42 27,125.82 41.93

Total Profit / Loss available for 26,970.64 42.33 34,321.31 53.05

Appropriations

INTERPRETATION:

 Depreciation was also increased to 979.39 cr. in (2020-21) from 806.07 cr. in (2019-
20).
 Net profit was also increased by 8.26% as comparing to the previous year.
3. TREND ANALYSIS OF AXIS BANK LTD.:

The given below table elaborated the trend analysis of Axis bank ltd. For the year 2016-17 to
2020-21.

Axis Bank          
Consolidated Balance ------------------- in Rs. Cr. -------------------
Sheet
  2016-17 2017-18 2018-19 2019-20 2020-21
  12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND          
LIABILITIES
SHAREHOLDER'S          
FUNDS
Equity Share Capital 479.01 513.31 514.33 564.34 612.75
TOTAL SHARE 479.01 513.31 514.33 564.34 612.75

20
CAPITAL
Revaluation Reserve 0 0 0 0 0
Reserves and Surplus 479.01 513.31 514.33 564.34 612.75
TOTAL RESERVES 55,901.34 63,694.10 67,288.29 85,776.09 1,02,980.95
AND SURPLUS
TOTAL 55,901.34 63,694.10 67,288.29 85,776.09 1,02,980.95
SHAREHOLDERS
FUNDS
Minority Interest 61.31 69.51 84.61 113.56 173.75
Deposits 4,14,982.68 4,55,657.7 5,50,745.94 6,42,157.21 7,07,623.42
6
Borrowings 1,12,454.76 1,55,767.0 1,61,249.83 1,55,180.17 1,52,248.72
9
Other Liabilities and 27,582.92 28,001.59 34,162.97 44,080.45 46,685.74
Provisions
TOTAL CAPITAL 6,11,462.01 7,03,703.3 8,14,045.97 9,27,871.81 10,10,325.33
AND LIABILITIES 7
ASSETS          
Cash and Balances with 30,857.95 35,481.06 35,099.04 84,959.27 51,808.57
Reserve Bank of India
Balances with Banks 20,108.17 8,429.75 32,905.27 12,840.50 11,615.79
Money at Call and
Short Notice
Investments 1,29,018.35 1,53,036.7 1,74,055.85 1,55,281.63 2,25,335.77
1
Advances 3,81,080.26 4,49,843.6 5,06,656.12 5,82,958.84 6,35,070.69
5
Fixed Assets 3,810.23 4,048.82 4,129.88 4,394.34 4,329.69
Other Assets 46,587.05 52,863.38 61,199.80 87,437.22 82,164.82
TOTAL ASSETS 6,11,462.01 7,03,703.3 8,14,045.97 9,27,871.81 10,10,325.33
7

21
Axis Bank
Consolidated Balance Sheet
  42795.00 43160.00 43525.00 43891.00 44256.00
  12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES          
SHAREHOLDER'S FUNDS          
Equity Share Capital 100.00 107.16 107.37 117.81 127.92
TOTAL SHARE CAPITAL 100.00 107.16 107.37 117.81 127.92
Revaluation Reserve 100.00 0.00 0.00 0.00 0.00
Reserves and Surplus 100.00 107.16 107.37 117.81 127.92
TOTAL RESERVES AND 100.00 113.94 120.37 153.44 184.22
SURPLUS
TOTAL SHAREHOLDERS 100.00 113.94 120.37 153.44 184.22
FUNDS
Minority Interest 100.00 113.37 138.00 185.22 283.40
Deposits 100.00 109.80 132.72 154.74 170.52
Borrowings 100.00 138.52 143.39 137.99 135.39
Other Liabilities and Provisions 100.00 101.52 123.86 159.81 169.26
TOTAL CAPITAL AND 100.00 115.09 133.13 151.75 165.23
LIABILITIES
ASSETS  
Cash and Balances with Reserve 100.00 114.98 113.74 275.32 167.89
Bank of India
Balances with Banks Money at 100.00 41.92 163.64 63.86 57.77
Call and Short Notice
Investments 100.00 118.62 134.91 120.36 174.65
Advances 100.00 118.04 132.95 152.98 166.65
Fixed Assets 100.00 106.26 108.39 115.33 113.63
Other Assets 100.00 113.47 131.37 187.69 176.37
TOTAL ASSETS 100.00 115.09 133.13 151.75 165.23

INTERPRETATION:

22
 300
160 250
120 200
80 150
100
40 50
0 0
l S DS st its gs ns ES ia ce ts es ts ts TS
ta AL ve us
a pi PIT ser urpl PLU UN tere pos win isio LITI Ind oti en anc sse sse S S E
C A e S U S F In De rro rov B I of rt N stm dv d A r A A
R
re E C on R nd S ty A k e A xe he AL
h AR ati s a ND DER ori
a Bo nd P D LI Ban S ho Inv Fi Ot OT
S H L n a d
ti y L S alu rve S A HO Mi s N v
e L A er l a
e n T
u v e E
Eq OTA Re Res ERV ARE i
b P
liti ITA es Cal
R t
T ES L S H
R r Lia CA ith y a
L w e
T A L OTA e
th OTA ces on
T O M
TO T lan ks
B a B an
d
an ith
sh w
Ca ces
n
la
2016-17 Ba
2017-18 2018-19 2019-20 2020-21

 Here we are taking the first year as the base year which is 2016-17.
 Equity share capital remains same for two years and after that it raises to it’s
maximum 127.92 cr.
 Trend analysis is showing the growth/ fall of different prices of balance sheet.
 Total shareholder’s fund was increasing year by year which is from 113.94 cr. (2017-
18) to 184.22 cr. (2020-21)
 Total assets were also increased from 115.09 cr. to 165.23 cr.

Axis Bank
Consolidated Profit & Loss ------------------- in Rs. Cr. -------------------
account
2016-17 2017-18 2018-19 2019-20 2020-21
 

           
  12 mths 12 mths 12 mths 12 mths 12 mths
         
 

INCOME          
Interest / Discount on Advances / 33,694.64 34,909.7 42,322.58 49,323.30 48,903.22
Bills 3
Income from Investments 9,674.97 10,019.9 11,375.66 11,279.34 12,584.88

23
 8
Interest on Balance with RBI and 505.79 391.06 699.01 1,098.71 1,039.78
Other Inter-Bank funds
Others 1,299.69 1,293.29 1,646.41 2,014.33 2,168.54
Total Interest Earned 45,175.09 46,614.0 56,043.65 63,715.68 64,696.42
6
Other Income 12,421.60 11,862.6 14,188.75 16,341.99 16,151.52
2
Total Income 57,596.70 58,476.6 70,232.41 80,057.67 80,847.94
7
EXPENDITURE          
Interest Expended 26,789.35 27,603.6 33,883.47 37,995.94 34,926.44
9
Payments to and Provisions for 4,742.10 5,414.44 5,989.87 5,819.96 2,168.54
Employees
Depreciation 526.67 590.58 737.17 806.07 979.39
Operating Expenses (excludes 7,456.86 8,783.34 9,993.15 11,439.72 16,026.95
Employee Cost & Depreciation)
Total Operating Expenses 12,725.63 14,788.3 16,720.19 18,065.76 19,174.87
6
Provision Towards Income Tax 5,188.84 1,951.55 3,271.12 3,076.88 2,756.87
Provision Towards Deferred Tax -3,202.06 - -726.16 324.41 -259.18
18,469.6
9
Other Provisions and 12,127.91 32,138.7 12,036.69 18,715.93 16,996.54
Contingencies 3
Total Provisions and 14,114.69 15,620.5 14,581.65 22,117.22 19,494.23
Contingencies 9
Total Expenditure 53,629.67 58,012.6 65,185.32 78,178.92 73,595.55
5
Net Profit / Loss for The Year 3,967.03 464.02 5,047.09 1,878.75 7,252.39
Net Profit / Loss After EI & Prior 3,967.03 464.02 5,047.09 1,878.75 7,252.39
Year Items

24
Minority Interest -14 -8.21 -8.5 -25.64 -56.89
Consolidated Profit/Loss After 3,953.03 455.82 5,038.59 1,853.11 7,195.50
MI And Associates
Profit / Loss Brought Forward 24,002.70 24,881.5 23,554.35 25,117.52 27,125.82
5
Total Profit / Loss available for 27,955.72 25,337.3 28,592.94 26,970.64 34,321.31
Appropriations 7

Axis Bank
Consolidated Profit & Loss ------------------- in Rs. Cr. -------------------
account
Mar-17 Mar-18 Mar-19 Mar-20 Mar 21
 

           
  12 mths 12 mths 12 mths 12 mths 12 mths
         
 

INCOME          
Interest / Discount on Advances / 100.00 103.61 125.61 146.38 145.14
Bills
Income from Investments 100.00 103.57 117.58 116.58 130.08
Interest on Balance with RBI and 100.00 77.32 138.20 217.23 205.58
Other Inter-Bank funds
Others 100.00 99.51 126.68 154.99 166.85
Total Interest Earned 100.00 103.19 124.06 141.04 143.21
Other Income 100.00 95.50 114.23 131.56 130.03
Total Income 100.00 101.53 121.94 139.00 140.37
EXPENDITURE          
Interest Expended 100.00 103.04 126.48 141.83 130.37
Payments to and Provisions for 100.00 114.18 126.31 122.73 45.73
Employees
Depreciation 100.00 112.13 139.97 153.05 185.96

25
Operating Expenses (excludes 100.00 117.79 134.01 153.41 214.93
Employee Cost & Depreciation)
Total Operating Expenses 100.00 116.21 131.39 141.96 150.68
Provision Towards Income Tax 100.00 37.61 63.04 59.30 53.13
Provision Towards Deferred Tax 100.00 576.81 22.68 -10.13 8.09
Other Provisions and 100.00 265.00 99.25 154.32 140.14
Contingencies
Total Provisions and 100.00 110.67 103.31 156.70 138.11
Contingencies
Total Expenditure 100.00 108.17 121.55 145.78 137.23
Net Profit / Loss for The Year 100.00 11.70 127.23 47.36 182.82
Net Profit / Loss After EI & Prior 100.00 11.70 127.23 47.36 182.82
Year Items
Minority Interest 100.00 58.64 60.71 183.14 406.36
Consolidated Profit/Loss After 100.00 11.53 127.46 46.88 182.02
MI And Associates
Profit / Loss Brought Forward 100.00 103.66 98.13 104.64 113.01
Total Profit / Loss available for 100.00 90.63 102.28 96.48 122.77
Appropriations
INTERPRETATION:

26
 700 450
400
600
350
500 300

400 250
200
300 150
200 100
50
100
0
0 -50

2016-17 2017-18 2018-19 2019-20 2020-21

 Here provision towards deferred tax was the highest among all these with a huge
margin of 576.81 cr. in 2017-18.
 In 2017-18 other provisions and contingencies was increased to 265 cr. and after that
it suddenly fallen down to 99.25 cr. in 2018-19 but after that again increased.
4. FINANCIAL RATIO OF AXIS BANK LTD.:

The given below table elaborated the financial ratio analysis of Axis bank ltd. For the year
2016-17 to 2020-21.

Axis Bank          
Consolidated Balance ------------------- in Rs. Cr. -------------------
Sheet
  2016-17 2017-18 2018-19 2019-20 2020-21
  12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND          
LIABILITIES
SHAREHOLDER'S          
FUNDS
Equity Share Capital 479.01 513.31 514.33 564.34 612.75
TOTAL SHARE 479.01 513.31 514.33 564.34 612.75

27
CAPITAL
Revaluation Reserve 0 0 0 0 0
Reserves and Surplus 479.01 513.31 514.33 564.34 612.75
TOTAL RESERVES 55,901.34 63,694.10 67,288.29 85,776.09 1,02,980.95
AND SURPLUS
TOTAL 55,901.34 63,694.10 67,288.29 85,776.09 1,02,980.95
SHAREHOLDERS
FUNDS
Minority Interest 61.31 69.51 84.61 113.56 173.75
Deposits 4,14,982.6 4,55,657.76 5,50,745.94 6,42,157.2 7,07,623.42
8 1
Borrowings 1,12,454.7 1,55,767.09 1,61,249.83 1,55,180.1 1,52,248.72
6 7
Other Liabilities and 27,582.92 28,001.59 34,162.97 44,080.45 46,685.74
Provisions
TOTAL CAPITAL 6,11,462.0 7,03,703.37 8,14,045.97 9,27,871.8 10,10,325.33
AND LIABILITIES 1 1
ASSETS          
Cash and Balances with 30,857.95 35,481.06 35,099.04 84,959.27 51,808.57
Reserve Bank of India
Balances with Banks 20,108.17 8,429.75 32,905.27 12,840.50 11,615.79
Money at Call and
Short Notice
Investments 1,29,018.3 1,53,036.71 1,74,055.85 1,55,281.6 2,25,335.77
5 3
Advances 3,81,080.2 4,49,843.65 5,06,656.12 5,82,958.8 6,35,070.69
6 4
Fixed Assets 3,810.23 4,048.82 4,129.88 4,394.34 4,329.69
Other Assets 46,587.05 52,863.38 61,199.80 87,437.22 82,164.82
TOTAL ASSETS 6,11,462.0 7,03,703.37 8,14,045.97 9,27,871.8 10,10,325.33
1 1

28
Axis Bank
Consolidated Profit & Loss ------------------- in Rs. Cr. -------------------
account
  2016-17 2017-18 2018-19 2019-20 2020-21
12 mths 12 mths 12 mths 12 mths 12 mths
 

 
INCOME

Interest / Discount on Advances / 33,694.6 34,909.7 42,322.5 49,323.3 48,903.22

Bills 4 3 8 0
Income from Investments 9,674.97 10,019.9 11,375.6 11,279.3 12,584.88
8 6 4
Interest on Balance with RBI and 505.79 391.06 699.01 1,098.71 1,039.78
Other Inter-Bank funds
Others 1,299.69 1,293.29 1,646.41 2,014.33 2,168.54
Total Interest Earned 45,175.0 46,614.0 56,043.6 63,715.6 64,696.42
9 6 5 8
Other Income 12,421.6 11,862.6 14,188.7 16,341.9 16,151.52
0 2 5 9
Total Income 57,596.7 58,476.6 70,232.4 80,057.6 80,847.94
0 7 1 7
EXPENDITURE          
Interest Expended 26,789.3 27,603.6 33,883.4 37,995.9 34,926.44
5 9 7 4
Payments to and Provisions for 4,742.10 5,414.44 5,989.87 5,819.96 2,168.54
Employees
Depreciation 526.67 590.58 737.17 806.07 979.39
Operating Expenses (excludes 7,456.86 8,783.34 9,993.15 11,439.7 16,026.95
Employee Cost & Depreciation) 2
Total Operating Expenses 12,725.6 14,788.3 16,720.1 18,065.7 19,174.87
3 6 9 6
Provision Towards Income Tax 5,188.84 1,951.55 3,271.12 3,076.88 2,756.87

29
Provision Towards Deferred Tax -3,202.06 - -726.16 324.41 -259.18
18,469.6
9
Other Provisions and 12,127.9 32,138.7 12,036.6 18,715.9 16,996.54
Contingencies 1 3 9 3
Total Provisions and 14,114.6 15,620.5 14,581.6 22,117.2 19,494.23
Contingencies 9 9 5 2
Total Expenditure 53,629.6 58,012.6 65,185.3 78,178.9 73,595.55
7 5 2 2
Net Profit / Loss for The Year 3,967.03 464.02 5,047.09 1,878.75 7,252.39
Net Profit / Loss After EI & Prior 3,967.03 464.02 5,047.09 1,878.75 7,252.39
Year Items
Minority Interest -14 -8.21 -8.5 -25.64 -56.89
Consolidated Profit/Loss After MI 3,953.03 455.82 5,038.59 1,853.11 7,195.50
And Associates
Profit / Loss Brought Forward 24,002.7 24,881.5 23,554.3 25,117.5 27,125.82
0 5 5 2
Total Profit / Loss available for 27,955.7 25,337.3 28,592.9 26,970.6 34,321.31
Appropriations 2 7 4 4

Liquidity Ratio          
Current ratio 0.73 0.30 0.96 0.29 0.25
Absolute liquid ratio 1.12 1.27 1.03 1.93 1.11

Return on Profitability Ratio          

Return on Equity (%) 50.01 39.78 42.49 31.44 33.33
Return on Total Asset (%) 4.57 3.60 3.51 2.91 3.40
Debt equity ratio 0.50 0.41 0.42 0.55 0.68

INTERPRETATION:

 The current ratio in 2016-17 was 0.73% which was after going with many ups and
downs it comes to 0.25%.
 With the absolute liquid ratio, it was same like it was came down from 1.12% to
1.11%.

30
 Return on equity ratio was also decreased from 50.01% (2016-17) to 33.33% (2020-
21)
 But the debt equity ratio increased to 0.68% in 2020-21 from 0.50 in 2016-17.
 Return on total asset was also decreased by 1.17% as compared to 2016-17.

31