AXIS BANK

PRESENTED BY:

ROUSERS

Akshay Goyal Arjit Maheshwari Krishnan Changulani Piyush Raj Anurag Agarwal

B.Com(h),IV sem

Badhti Ka Naam Zindagi

Type Private

Traded as AXISBANK

Industry Banking, Financial services

Founded 1994 (As UTI Bank)

Headquarters Mumbai, Maharashtra, India

Key people Adarsh Kishore(Chairman)Shikha Sharma(MD & CEO)

Products Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management

Revenue  198.26 billion (US$3.61 billion) (2011)

Net income 33.44 billion (US$608.61 million) (2011)

Total assets 2.42566 trillion (US$44.15 billion) (2011)

Employees 21,640 (2010)

Website www.axisbank.com

AXIS BANK 

The AXIS Bank is a leading private sector bank and financial services company in India offering a wide range of products and services to corporate and retail customers through a variety of delivery channels.Since commencing operations in April 1994 the Bank has grown both in terms of its physical network of branches, extension counters and ATMs, as well as in terms of the size of asset base. The Bank's ATM network of 3,595 ATMs is the third largest in the country. The Bank has a wide presence through its 835 Branches & Extension Counters across 515 cities and towns across India.

1. AXIS Bank Corporate OfficeThe Axis Bank Corporate Office in Mumbai (also known as the Axis

House), received the ‘Platinum’ rating by the US Green Building Council for its environment friendly facilities and reduction of carbon emission.

2. International Branches

SingaporeHong KongDubaiShanghaiColombo

3.Products

Savings Account

Easy Access Savings AccountPrime Savings AccountCorporate Salary Account Defense Salary Account

Defense Salary Account

Current Account

Business PrimeBusiness Advantage Current AccountBusiness Select Current AccountBusiness Classic Current AccountBusiness Global Current Account

Business Global Current Account

4.Investment Products

1. Gold and Silver Mohur2. Mutual Funds3. Life Insurance4. General Insurance

 Gold And Silver Mohur

Certified Gold and Silver bars.

Mutual FundsAxis Bank offers options from 12 mutual fund companies.

Life InsuranceAxis Bank has a corporate agency agreement with Max Life,

one of the most reputed Life Insurance companies in India.

General Insurance

Axis Bank has a Corporate Agency partnership with TATA AIG General Insurance to distribute General Insurance products. The various General Insurance products available for sale at Axis Bank branches are:

• Health Insurance

• Motor Insurance

• Jewellery Insurance

• Personal Accident Cover

• Home Insurance

• Travel Insurance 

4.2 Loans

Home LoansCar LoansPersonal LoansLoans Against PropertyLoans Against ShareLoans Against SecuritiesLoans Against Gold

4.3 Cards

Titanium Smart Traveler Credit CardsPlatinum Advantage Credit CardVisa Signature Credit CardVisa Infinite Credit Card

4.4 Agri Business Loans

Kisan PowerPower Gold Kisan power

Kisan Power aims at providing adequate and timely credit to farmers for various needs. It gives farmers the flexibility to choose between cash, credit and term loans with friendly repayment terms.  Power Gold

Power Gold gives easy loans up to 15, 00,000 to individuals engaged in agriculture or allied activities, against the pledge of Gold ornaments.

The Business Gaurav SME AwardsIn 2011-12, Axis Bank set up 6 SME centers and SME cells each across the country, taking the total number to 32 SME Centers. The Bank also organized the ‘Business Gaurav SME Awards’ in association with Dun & Bradstreet to recognize and award achievements in the SME space.

Awards and RecognitionsIn year 2011-12

 Bank of the Year – India The Banker Awards 2011.Best Bank - Private Sector NDTV Profit Business Leadership Awards.Best Bank 2011 Outlook Money.Brand Excellence Award 2011 (BFSI) Star News. The Most Consistent Large Bank Best Banks-2011. Most Productive Private Sector Bank FIBAC 2011 Banking Awards.3rd Strongest Bank in Asia-Pacific Region Asian Banker.The Best Domestic Bank- India The Asset Triple A Country Awards 2011.Best Risk Master (Private Sector Category) FIBAC 2011 Banking Awards.Best Bond House India -2011 Finance Asia.

BOARD OF DIRECTORS

NAME DICLERATION

Adarsh Kishore Chairman / Chair Person

Rama Bijapurkar DirectorV R Kaundinya Director

Prasad R Menon Director

Samir K Barua DirectorSom Mittal Director

Somnath Sengupta Executive DirectorShikha Sharma Managing Director & CEO

K N Prithviraj DirectorS B Mathur Director

R N Bhattacharyya DirectorA K Dasgupta DirectorV Srinivasan Executive DirectorIreena Vittal Addnl. & Ind.Director

OBJECTIVES

Ratio has been defined that technique that is possibly used to facilitate the comparison of significant figures thereby expressing the relationship in form of percentage.  The objectives therefore included:

To know the financial position of the axis bank. To provide in formulation for making time series analysis.I.e. comparison of banks presents ratios & past ratios. To interpret the financial ratios of the bank & give proper suggestion for its improvement.

AXIS BANK LIMITED – BALANCE SHEET

BALANCE SHEET AS AT 31 MARCH, 2012 Schedule No

Current year31-03-2012(in thousands)

Previous year31-03-2011(in thousands)

CAPITAL AND LIABILITIES

Capital 1 4,132,039 4,105,458

reserve and surplus 2 223,953,384 185,882,797

Deposits 3 2,201,043,033 1,892,378,010

Borrowings 4 340,716,721 262,678,824

Other liabilities and provisions

5 86,432,757 82,088,627

TOTAL 2,856,277,934 2,427,133,716

FINANCIAL STATEMENTS

Assets

Cash and Balances with Reserve Bank of India

6 107,029,214 138,861,630

Balances with Banks and Money at Call and Short Notice

7 32,309,943 75,224,929

Investments 8 931,920,859 719,916,208

Advances 9 1,697,595,386 1,424,078,286

Fixed Assets 10 22,593,250 22,731,456

Other Assets 11 64,829,282 46,321,207

Total 2,856,277,934 2,427,133,716

Contingent liabilities

12 4,802,373,747 4,453,914,432

Bills for collection 346,346,043 324,731,072

Significant Accounting Policies and Notes to Accounts

17 & 18

AXIS BANK LIMITED - PROFIT & LOSS ACCOUNTPROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH, 2012

Schedule no.

Year ended (31-03-2012)(in thousands)

Year ended (31-03-2012)(in thousands)

(I) INCOME

Interest earned 13 219,946,474 151,548,058

Other income 14 54,202,163 46,321,338

Total 274,148,637 197,869,396

(II) EXPENDITURE

Interest expanded 15 139,769,024 85,918,230

Operating expenses 16 60,070,995 47,794,281

Provisions and contingencies 18 (2.1.1)

31,886,564 30,271,979

TOTAL 231,726,583 163,984,490

(III) NET PROFIT FOR THE YEAR (I - II)

42,422,054 33,884,906

Balance in Profit & Loss Account brought forwardfrom previous year

49,697,707 34,274,337

(IV) AMOUNT AVAILABLE FOR APPROPRIATION

92,119,761 68,159,243

(V) APPROPRIATIONS :

Transfer to Statutory Reserve 10,605,513 8,471,227

Transfer to/(from) Investment Reserve

(149,372)

Transfer to Capital Reserve 519,047 47,630

Transfer to General Reserve 3,388,491

Proposed dividend (includes tax on dividend)

7,700,725 6,703,560

Balance in Profit & Loss Account carried forward

73,294,476 49,697,707

Total 92,119,761 68,159,243

CALCULATION OF BALANCE SHEET, PROFIT & LOSS A/C & EARNINGS PER SHARE RATIOS (Rs. In Crors)

2012 2011 2010 2009 2008

13.6612.6515.813.6913.73

72.2976.1672.9673.8775.89

BALANCE SHEET RATIOS

Capital Adequacy RatioAdvances / Loans Funds(%)

2012 2011 2010 2009 2008

102.6782.54

62.0650.57

29.94

Earnings Per Share

Earnings Per Share

2012 2011 2010 2009 2008

63.55

56.69 57

65.9863.09

23.8727.65

30.96

24.95 26.2

0.320000000000003 0.4 0.3 0.34

0.850000000000001

PROFIT & LOSS A/C RATIOS

Interest Expended / Interest EarnedOperating Expense / Total IncomeSelling Distribution Cost Composition

CALCULATION OF PROFITABILITY RATIO (Rs. In Crors)

2012 2011 2010 2009 2008

3.91 3.73 3.95 4.24 3.77

16.69 18.71 17.63 14.76 14.19

15.51 17.2 16.1 13.31 12.22

88.75

72.2966.34

97.35

71.17

18.59 17.83 15.67 17.7712.2118.51 17.87 15.69 17.85

12.38

PROFITABILITY RATIO

Interest Spread Adjusted Cash Margin(%)Net Profit Margin Return on Long Term Fund(%)Return on Net Worth(%) Adjusted Return on Net Worth(%)

CONCLUSION  According to financial Ratio analysis of Axis bank its performance in the private bank is good and expected to grow further in the near future which is a good sign for investment.  Earnings per Share and dividend both are increasing year to year.   The Financial Ratio analysis is a process of evaluating the financial statements to obtain a better understanding of the Bank‘s position and performance.   Financial Ratio analysis is the process of selection, relation and evaluation. The first task of financial analyst is to select the information from the financial statements. The second step is to arrange the information in a way to highlight significant relationships. The final step is interpretation and drawing of inferences and conclusions.

The financial year 2011 the Current Ratio is decrease by 0.02 %.

Difference between company balance sheet and bank balance sheet

Company's balance sheet will be prepared as per the company's act and bank's balance sheet follows the banking regulation act.

There are no difference in terms of balance sheet. Only the formats are different and the assets representation are different. Assets have same nature in both balance both comprise the assets of each organisation.

In the banks case the assets will be mostly cash held on behalf of customers and cash reserves-i.e. cash profits held back from previous years, and also any plant and machinery and property.any non banking organisation will also have assets, but they will tend to be some cash but mostly other assets such as stock,property,vehicles etc.

A bank primarily finances its operations with debt, while a service company such as law firm or accounting firm primarily finances its operations with owner equity.

SUGGETION 

The analysis carried out at on the Axis Bank, their profit and loss account, balance sheet and ratios. I shall suggest the investors to invest in Axis Bank than the other banks as a value investment.  Reasons:

Largest private sector bank in India. Strong increase in profit year-on-year basis.  Increasing EPS indicate good earnings.  Increase in sharing profit with shareholders in form of dividend.  Axis Bank is expanding its footholds on international level also; its Insurance and asset management business are also performing well.

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