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SUMMER TRAINING PROJECT REPORT
On
Working Capital Initiatives at AXIS AN! "i#ite$%&
'A pro(e)t *n$ertaken at t+e AXIS AN! RANC, -I,ARSARI./I,AR/ In$ia&0
AXIS AN! "IMITE1
SUMITTE1 TO
'"lo2$ Instit*te o3 Manage#ent an$ Te)+nolog2/ "IMT/ in partial 3*l3ill#ent o3 t+e $egree o3
Master4s o3 *siness A$#inistration5 o3 Uttar Pra$es+ Te)+ni)al Universit25 "*)kno6/ In$ia0
.a)*lt2 G*i$e 7/ S*8#itte$ 82/
POR.& RA,U" MIS,RA M1 WASIM A!RAM
ASTT& PRO.ESSOR M&&A& 9r$Se#ester RO"" NO&:9:;
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PART/:
1EC"ARATION
I, MD WASIM AKRAM to declare that the Diertation report entitled WOR!ING CAPITA"
MANAGEMENT O. AXIS AN!!"eing #"mitted to the $%%AR PRAD&S' %&C'(ICA)
$(I*&RSI%+ or the partial #lillment o the re-#irement or the degree o Mater o .#ine
Adminitration i m/ o0n endeaor and it ha not "een #"mitted earlier to an/
intit#tion2#nierit/ or an/ degree3
Place4
Date4 MD WASIM AKRAM
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AC!NOW"E1GMENT
I hae "eneited a lot rom #mmer training project or o#r co#re o MA5 thi project ha "een a
re0arding kno0ledge3 I hae got into the ario# apect o AXIS AN!3
I take thi opport#nit/ to ackno0ledge the inal#a"le aitance o thoe people 0ho helped me in
#cce#l completion o thi Diertation project report3
3
I alo thank (ihikant Singh and M#rt#6a ali or teering m/ conidence and capa"ilit/ or giing me
inight into training "/ giing me e7po#re to the arena o competitie and real 0orld3
)at "#t not the leat, I e7pre m/ thank to all the department o a7i "ank 0ho al0a/ enco#rage
me and proided me #pport at all time3
M1 WASIM A!RAM
M.A 8III Sem9
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PRE.ACE
%hi project ha "een prepared in partial #lillment or the degree o Mater o .#ine
Adminitration3
A project i a 0ork plan deied thro#gh inetigation and anal/i to achiee a et o"ject 0ithin a
peciied time period3 A t#dent i aigned a topic and re-#ired to prepare a report ater making a
t#d/ o 0orking o an/ organi6ation3
I 0a aigned to prepare a Diertation project report on Working Capital Management o A;IS
.A(K3
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MD WASIM AKRAM
EXECUTI>E SUMMAR?
Working capital management or impl/ the management o capital ineted in c#rrent aet i the
oc# o m/ t#d/3 M/ topic i to t#d/ WOR!ING CAPITA" MANAGEMENT IN AXIS
AN!&
Working capital i the #nd ineted "/ a irm in c#rrent aet3 (o0 in a c#t throat competitie era
0here each irm compete 0ith each other to increae their prod#ction and ale, holding o
#icient c#rrent aet hae "ecome mandator/ a c#rrent aet incl#de inentorie and ra0
material 0hich are re-#ired or mooth prod#ction r#n3 'olding o #icient c#rrent aet 0ill
en#re mooth and #n interr#pted prod#ction "#t at the ame time, it 0ill con#me a lot o 0orking
capital3 'ere creep the importance and need o eicient 0orking capital management3 Working
capital management aim at managing capital aet at optim#m leel, the leel at 0hich it 0ill aid
mooth r#nning o prod#ction and alo it 0ill inole inetment o nominal 0orking capital in
capital aet3
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S&No& CONTENTS PAGE NO&
:& C,APTER/: INTRO1UCTION =@
IEW O. RE"ATE1
"ITRATURE 99
9& C,APTER/9 1ESIGN O. STU1? B
& T,E STU1? ;:
D& OJECTI>ES O. STU1? ;EMENTS
AXIS"ank one o the "igget "ank in priate ector in India3A on the /ear ended$arch %& '&%
the .ank had a net 0orth o Rs& @B
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CURRENT SITUATION O. T,E AN!
%oda/, more than a cent#r/ ater thoe tentatie irt tep, A;IS .A(K air/ tale i not onl/ going
trong "#t "la6ing ne0 tandard, and that min#c#le initial inetment ha gro0n "/ leap and
"o#nd to crore o r#pee in 0ealth or A;IS .A(K hareholder3 %he compan/G oering are
pread acro the pectr#m 0ith erice3 'aing #cceeded in garnering the tr#t o almot oneHthird
o IndiaG one "illion pop#lation and a trong management at the helm mean a7i 0ill contin#e to
dream "ig on it path o innoation3 And million o c#tomer 0ill ao#r the re#lt, happil/ eer
ater3
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STRUCTURE O. ORGANISATION
1R&SANJI> MISRA C'AIRMA(
S,I!,A S,ARMA MD C&O
!&N PRIT,>IRAJ DIR&C%OR
>&R !AUN1IN?A DIR&C%OR
S3. MA%'$R DIR&C%OR
PRASAD M&(O( DIR&C%OR
Pro3 SAMIR K .AR$& DIR&C%OR
SOM MI%%A) DIR&C%OR
IR&&(A MI%%A) DIR&C%OR
RO'I% .'ABA% DIR&C%OR
> SRINI>ASAN 1IRECTOR
US,A SANGWAN 1IRECTOR
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OAR1 O. 1IRECTORS
D#ring the /ear, Shri S'IK'A S'ARMA, &7ec#tie Director 80holeHtime Director9 retired rom the
erice o the .ank 03e33 :1 Decem"er 5E1E3 %he .oard o Director place on record their
appreciation and gratit#de to Shri S3 Chatterjee or the al#a"le erice rendered "/ him d#ring hi
%en#re a &7ec#tie Director o the .ank3 In accordance 0ith the proiion o the Companie Act,
1>? and the Article o Aociation o the .ank, Shri K3( PRI%'*IRAJ, Shri S3. MA%'$R and
Smt3 PRASAD M&(O( retire "/ rotation at the %hirteenth Ann#al Beneral Meeting and, "eing
eligi"le, oer themele or reHappointment a Director o the .ank3
SUSI1IARIES%he .ank ha et #p t0o 0holl/ o0ned #"idiarie i63
$.) Sale )td3 and $.) Aet Management Compan/ )td3$.) Sale )td hae "een et #p or
marketing credit card and other retail aet prod#ct3
%he o"jectie o thi #"idiar/ i to "#ild a peciali6ed orce o ale peronnel, optimi6e
operational eicienc/ and prod#ctiit/ and there"/ red#ce cot3 %he ale #"idiar/ alo eek to
proide greater control and monitoring o the ale eort iHHi the c#rrent DSA model3 %he
econd #"idiar/ o the .ank, $.) Aet Management Compan/ )td3 ha "een ormed primaril/ to
carr/ on the actiitie o managing 8directl/ or indirectl/9 inetment, ent#re capital #nd, oH
hore #nd etc3
%he perormance o thee #"idiarie along 0ith their Director Report and inancial tatement are
encloed a Anne7#re to thi report3 In line 0ith the Acco#nting Standard 51 8AS 519 i#ed "/ the
Intit#te o Chartered Acco#ntant o India, the conolidated inancial re#lt o the .ank along 0ith
it #"idiarie or the /ear ended :1 March 5E15 are encloed a an Anne7#re to thi report3
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1IRECTORS4 RESPONSII"IT? STATEMENT
The oard of *irectors here+y declares and confirms that,
L %he applica"le acco#nting tandard hae "een ollo0ed in the preparation o the ann#al
acco#nt and proper e7planation hae "een #rnihed, relating to material depart#re3
L Acco#nting policie hae "een elected, and applied conitentl/ and reaona"l/, and pr#dent
j#dgement and etimate hae "een made o a to gie a tr#e and air ie0 o the tate o
aair o the .ank and o the Proit )o o the .ank or the inancial /ear ended :1
March 5E1=3
L Proper and #icient care ha "een taken or the maintenance o ade-#ate acco#nting record,
in accordance 0ith the proiion o the Companie 8Amendment9 Act, 5EEE, or
aeg#arding the aet o the .ank and or preenting and detecting ra#d and other
irreg#laritie3
L %he ann#al acco#nt hae "een prepared on a going concern "ai3
PART/
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*emand deposits up 3.&&/ to 0s. %%.&4 Crores.
Profit after ta: up %.43/ to 0s. &'32.1 Crores.
.oth "#ine and earning contin#ed to dipla/ high gro0th in
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O>ER>IEW O. .INANCIA" AN1 USINESS PER.ORMANCE
D#ring the /ear 5E1:H5E1=, the .ank ha 0itneed a trong gro0th in "#ine ol#me a 0ell a
proit, 0ith the net proit increaing "/ :=3? to R3 15?@3E crore rom R3 ?E3E crore the
preio# /ear3
%he total income o the .ank roe "/ >:3> to R3 ,>@E3>5 crore rom R3 =,?13=5 crore the
preio# /ear3
D#ring the ame period, the operating reen#e increaed "/ =53>> to R3 :>531 crore, 0hile
operating proit increaed "/ :?311 to R3 1,@?53?E crore3 On :1 March 5E1=, the .ank total
aet increaed "/ ==3:1 to R3:, 5@@ crore3
%he total depoit o the .ank gre0 "/ =?3>> to R3>, @? crore, 0hile the total adance gre0
"/ ?>35? to R3 :?,@?crore3
%he total demand depoit 8aing "ank and c#rrent acco#nt depoit9 hae increaed "/ =?311 to
R3 5:,=:E31 crore, contit#ting:3? o total depoit3
%he .ank ha increaed it market hare o aggregate depoit in All Sched#led Commercial .ank
8ASC.9, 0hich roe rom 13@? a on :1 March 5E1: to 53E on :E March 5E1=, While it hare
o adance roe rom 13>E to 13@ d#ring the ame period3
In the inancial /ear 5E1:H1=, the .ank incremental market hare o aggregate depoit in ASC.
0a :3: 0hile it incremental hare in adance 0a 53@>3 %he olid perormance o the .ank
depite higher proiioning on tandard aet, increae in rik 0eight on elect aet clae,
red#ction on interet paid on CRR and a hardening o interet rate d#e to tightening o the oerall
li-#idit/ it#ation #ndercore the eicac/ o the "#ine model adopted "/ the .ank3
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%he .ank contin#ed to enhance hareholder al#e and the dil#ted earning per hare or the /ear
5E1:H1= increaed to R3 5@3@ rom R3 553E the preio# /ear3 A on :1 March 5E1=, the "ook
al#e per hare o the .ank ha increaed to R3 1:>3>E rom R3 1113E? a on :1 March 5E1:3
%he .ank 0ill contin#e to derie "eneit rom the inratr#ct#re created Oer the /ear and 0ill
contin#e to p#r#e a trateg/ o proita"le gro0th thro#gh tronger corporate relationhip and an
accelerated retail c#tomer e7panion programmed drien "/ the .ank m#ltiple channel3 In 5E1:H
1=, the .ank trateg/3 %he .ank 0ill contin#e to emphai6e gro0th opport#nitie thro#gh higher
)eel o c#tomer atiaction and lo/alt/, and deepening relationhip 0ith e7iting c#tomer3 It
eek to maintain and enhance a trong retail and corporate ranchie, trengthen the tr#ct#re and
delier/ channel or increaing SM& and agric#lt#ral "#inee, e7ploit croHell opport#nitie,
oer priate "anking or highHnet 0orth c#tomer, conolidate ne0 "#ine initiatie #ch a
Credit Card, Wealth Management and .anc a#rance or )ie In#rance, and encae opport#nitie
thro#gh oerea oice or croH"order trade inance, /ndication o de"t and (RI "#ine
deelopment3
%he .ank 0ill contin#e to oc# on highH-#alit/ earning gro0th thro#gh an emphai on core
income tream #ch a (II and eeH"aed income and on maintaining a high tandard o aet
-#alit/ "/ proiding emphai on rigoro# rikHmanagement practice3 %he .ank 0ill contin#e to #e
%echnolog/ e7teniel/ to maintain competitie adantage and contin#e to #pHgrade the technolog/
platorm to proide leerage or "ringing in higher cot eiciencie3
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1
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Per3or#an)e S*##ar2
Interet income gro0 "/ >> +o+ on the "ack o >E +o+ gro0th in adance3 (et interet
margin improe to :3: d#e to lo0er cot o #nd and higher proportion o CASA3
Cot to income ratio remain ta"le at >E3
.ottom line gro0 "/ ?? +o+ aided "/ trong traction in ee income, depite higher
proiioning3
Capital ade-#ac/ ratio 8CAR9 comorta"le at 1?33
Rs '#0 9.?:< 9.?:9 C+ange B#.?:< B#.?:9 C+ange
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Interet income 11,?= 1,E5: >=3@ :1,5E1 =, >3
Interet e7pene @,@:@ 1E,>>E :?3= 5E,E :5,:5 >=3?
(et Interet
Income
:,11 @,=@: 131 1E,5: 1@,>? @E3@
(et interet
margin 89 53 :3:
Other Income 5,@@ =,@ @=3= @,EE 15,:E @=3
Other &7pene :,:? >,?5 ?@31 ,@1> 1=,5 @13:
Proiion and
contingencie
>1> 5,EE1 53> 1,?= =,1>= 1553
Proit "eore ta7 :,:: ?,@5: 1E13: ,?? 1?,E:1 ?E3=
%a7 @@ 1,?>= >3: 5,::: :,@E ?53E
Proit ater ta72
8lo9
?? 15? >53? =,=@1 @,E@ >3@
(et proit margin
891>3 1@3E 1=3: 1=35
(o3 o hare 8m9 5135 :>@3=
.ook al#e per
hare 8R9 5:=3:
P2.* 879N =3@
A7i .ank to#ched the >E mark in it adance gro0th or the tenth conec#tie -#arter in :
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appetite3 Alo, a rie in the proportion o CASA 8c#rrent and aing acco#nt9 #gget a cot
concio# trateg/ 0ith repect to depoit accretion3
Cost )entri) gro6t+&&
8R m9 mE3=
Agric#lt#re 5:,:@E @35 :?,@E @3? >@3=
Retail 1,@E 53= 15E,EE 5=3@ :E3
SM& >@,51E 1@3@ E,EE 13> >@3>
)arge corporate 1>1,E1E =?3@ 5:,:?E =35 >3>
Depoit >E,5EE ?>,>1E :=3?
CASA 1,:E :@31 :1E,:5E =>3: ?=3:
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%erm depoit :5E,:@E ?53 :@>,1E >=3@ 1@31
Credit depoitratio
?:3> @E3
Contin#ing 0ith the trend een in the pat e0 -#arter, A7i .ank ee income regitered a trong
gro0th o 1 +o+ d#ring :
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PRO1UCTS H SER>ICES O. T,E ORGANISATION
T2pes o3 1eposit A))o*nts
While ario# depoit prod#ct oered "/ the .ank are aigned dierent name3 %he depoit
prod#ct can "e categoried "roadl/ into the ollo0ing t/pe3
1e#an$ $epositsmean a depoit receied "/ the .ank 0hich i 0ithdra0 a"le on demand3
Savings $eposits mean a orm o demand depoit 0hich i #"ject to retriction a to the
n#m"er o 0ithdra0al a alo the amo#nt o 0ithdra0al permitted "/ the .ank d#ring an/
peciied period3
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Ter# 1epositmean a depoit receied "/ the .ank or a i7ed period 0ithdra0 a"le onl/ ater
the e7pir/ o the i7ed period and incl#de depoit #ch a Rec#rring2Reinetment Income
Certiicate2 &ncah 5=2Short term Depoit2
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Saing .ank Acco#nt can alo "e opened "/ a minor jointl/ 0ith nat#ral g#ardian or 0ith mother a
the g#ardian 8kno0n a Minor Acco#nt93 Minor a"oe the age o 15 0ill alo "e allo0ed to open
and operate aing "ank acco#nt independentl/3
L Operation o Joint Acco#nt H %he Joint Acco#nt opened "/ more than one indiid#al can "e
operated "/ ingle indiid#al or "/ more than one indiid#al jointl/3 %he Saing .ank Acco#nt
opened "/ minor jointl/ 0ith nat#ral g#ardian 2 g#ardian can "e operated "/ nat#ral g#ardian onl/3
L %he joint acco#nt holder can gie an/ o the ollo0ing mandate or the dipoal o "alance in
the a"oe acco#nt4
&ither or S#rior 4 I the acco#nt i held "/ t0o indiid#al a/, A ., the inal "alance along
0ith interet, i applica"le, 0ill "e paid to #rior on death o an/one o the acco#nt holder3
L An/one or S#rior2 4 I the acco#nt i held "/ more than t0o indiid#al a/, A, . and C, the
inal "alance along 0ith interet, i applica"le, 0ill "e paid to the #rior on death o an/ t0o
acco#nt holder3
%he a"oe mandate 0ill "e applica"le to or "ecome operational onl/ on or ater the date o mat#rit/
o term depoit3 %hi mandate can "e modiied "/ the conent o all the acco#nt holder3
L At the re-#et o the depoitor, the .ank 0ill regiter mandate 2 po0er o attorne/ gien "/ him
a#thori6ing another peron to operate the acco#nt on hi "ehal3
%he term depoit acco#nt holder at the time o placing their depoit can gie intr#ction 0ith
regard to clo#re o depoit acco#nt or rene0al o depoit or #rther period on the date o mat#rit/3
In a"ence o #ch mandate, the .ank 0ill eek intr#ction rom the depoitor2 a to the dipoal o
the depoit "/ ending intimation "eore 1> da/ o the mat#rit/ date o term depoit3
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A$vertising an$ Marketing
A7i 0ill make #re that all adertiing and promotional material i clear, air, reaona"le and not
mileading3
A7i 0ill eek /o#r peciic conent or giing detail o /o#r name and addre to an/ third part/,
incl#ding other entitie in o#r gro#p, or marketing p#rpoe3
A7i 0o#ld like to proide /o# 0ith the entire range o inancial erice prod#ct, ome o 0hich
are o#r o0n prod#ct 0hile ome other are the prod#ct o o#r gro#p2aociate2entitie or companie
0ith 0hom 0e hae tieH#p arrangement3
A7i 0ill ho0eer tell /o# a"o#t o#r aociate 2 gro#p entitie or companie haing "#ine tieH#p
arrangement 0ith # and i /o# o deire, direct their ta 2 agent or marketing their prod#ct3
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EMP"O?EE STOC! OPTION P"AN 'ESOP0
%o ena"le emplo/ee incl#ding 0holeHtime Director o the .ank to participate in the #t#re gro0th
and inancial #cce o the .ank, the .ank ha intit#ted an &mplo/ee Stock Option Scheme #nder
0hich 5,,EE,EEE option can "e granted to emplo/ee3 %he emplo/ee tock option cheme i in
accordance 0ith the Sec#ritie and &7change .oard o India 8&mplo/ee Stock Option and &mplo/ee
Stock P#rchae Scheme9 B#ideline, 13 %he eligi"ilit/ and n#m"er o option to "e granted to an
emplo/ee i determined on the "ai o the emplo/ee 0ork Perormance and i approed "/ the
.oard o Director3
%he .ank hareholder approed plan in , the pricing
orm#la ha "een changed to the cloing price o the preio# da/ o the grant date3 %he
Rem#neration and (omination Committee granted option #nder thee plan on i7 occaion, o
option o 11,1,5>Q 1@,@,@EEQ 5@,@=,=>EQ :,E,:EQ >@,E,5=E and =?,>,?E d#ring 5EE@HE,
5EEHE, 5EEH1E, 5E1EH11, 5E11H15 and 5E15H1: repectiel/3 %he option granted, 0hich are nonH
tranera"le, et at the rate o :E, :E and =E on each o three #cceie annierarie
ollo0ing the granting, #"ject to tandard eting condition, and m#t "e e7ercied 0ithin three
/ear o the date o eting3 A o :1 March 5E15, , ?=,E: option had "een e7ercied and
1E,@5,1E option 0ere in orce3 Other tat#tor/ diclo#re a re-#ired "/ the reied S&.I
g#ideline on &SOP are gien in the Anne3
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RE>IEW O.
RE"ATE1
"ITRATURE
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C,APTER/ IEW O. RE"ATE1 "ITRATURE
%he "anking ind#tr/ ha come #nder increaing peimim o late "eca#e o riing hort and longH
term interet rate3 %he "anking ind#tr/ market capitali6ation made a #"tantial decline3 Mot
inetor are concerned 0ith 0hether the ind#tr/ can #tain contin#ed proita"ilit/ a a re#lt o
thee actor3 .ank hae reponded in recent /ear to thee pro"lem "/ dieri/ing a0a/ rom
interet enitie prod#ct and erice3 .#t interet rate are the #ndamental apect o an/ inancial
erice3 %hereore, I "eliee the inancial erice ind#tr/ 0ill "e deepl/ aected "/ riing interet
rate3 .ank hae e7perienced good "#ine actor oer the pat t0o /ear3 Interet rate 0ere lo0,
credit -#alit/ 0a good, and inlation 0a lo03 %hee actor are ##all/ predictie o the t/pe o
earning "ank ho#ld report3 .#t good time cant contin#e "eca#e interet rate hike "eca#e
red#ced lending actiit/, damaged credit -#alit/, and red#ced al#e o "ond portolio3 Porter
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"argaining po0er4 I gro#ped thee t0o categorie together "eca#e in the "anking ind#tr/ the "#/er
are the #pplier and ice era, o I might a 0ell j#t dic# the it#ation a a 0hole3 Interet rate
are the ingle mot important apect o "ank proita"ilit/ the/ are the "argaining po0er3 Mot "ank
proit are deried rom net interet income3 %hi i interet income receied on loan min# interet
e7pene or "orro0ed #nd3 Interet rate determine the amo#nt o mone/ a "ank can earn3 Another
mea#re i a "ank net interet margin 0hich i a "ank net interet income diided "/ it aerage
earning aet3 %hi i a common mea#re o a "ank a"ilit/ to -#ee6e proit rom it loan3 When
interet rate all, the/ hae a poitie eect on a "ank3
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MEANING O. WOR!ING CAPITA" MANAGEMENT
Working Capital i commonl/ deined a the dierence "et0een c#rrent aet and c#rrent lia"ilitie3
&icient 0orking capital management re-#ire that irm ho#ld operate 0ith ome amo#nt o
0orking capital, the e7act amo#nt ar/ing rom irm to irm and depending, among other thing on
the nat#re o ind#tr/3
Capital re-#ired or a "#ine can "e claiied in t0o main categorie i63
:0 .iFe$ )apital5 an$
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C"ASSI.ICATION O. WOR!ING CAPITA"
Working Capital ma/ "e claiied on t0o "ai4 H
a0 On t+e 8asis o3 Con)ept7 /
On the "ai o concept, 0orking capital can "e claiied a,
Bro Working Capital
(et Working Capital
80 On t+e 8asis o3 Ti#e7 /
On the "ai o time, 0orking capital can "e claiied a,
Permanent or
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inancial or going concern concept 0herea net 0orking capital i an acco#nting concept o 0orking
capital3 .oth the concept hae their o0n merit3
%he gro concept i ometime preerred to the concept o 0orking capital or the ollo0ing reaon4
H
It ena"le the enterprie to proide correct amo#nt o 0orking capital at correct time3
&er/ management i more intereted in total c#rrent aet 0ith 0hich it ha to operate then the
o#rce rom 0here it i made aaila"le3
It take into conideration o the act eer/ increae in the #nd o the enterprie 0o#ld increae
it 0orking capital3
%he concept i alo #e#l in determining the rate o ret#rn on inetment in 0orking capital3
%he net 0orking capital concept, ho0eer, i alo important or the ollo0ing reaon4H
It i a -#alitatie concept, 0hich indicate the irmG a"ilit/ to meet it operating e7pene the
hortHterm lia"ilitie3
It indicate the margin o protection aaila"le to hort term creditor3
It i an indicator o inancial o#ndne o enterprie3
It #gget the need o inancing a part o 0orking capital re-#irement o#t o the permanent
o#rce o #nd3
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Per#anent or .iFe$ Working Capital7 /
Permanent or i7ed capital i the minim#m amo#nt, 0hich i re-#ired to en#re eectie #tili6ation
o i7ed acilitie and or maintaining the circ#lation o c#rrent aet3 &er/ irm ha to maintain a
minim#m leel o c#rrent aet i called permanent or i7ed 0orking capital a thi part o 0orking
capital i permanentl/ "locked in c#rrent aet3 A the "#ine, gro0 the re-#irement o 0orking
capital alo increae d#e to increae in c#rrent aet3
%emporar/ or *aria"le Working Capital4 H
%emporar/ or aria"le 0orking capital i the amo#nt o 0orking capital, 0hich i re-#ired to meet
the eaonal demand and ome pecial e7igencie3 *aria"le 0orking capital can #rther "e claiied
a eaonal 0orking capital and pecial 0orking capital3 %he capital re-#ired to meet the eaonal
need o the enterprie i called the eaonal 0orking capital3 Special 0orking capital i that part o
0orking capital 0hich i re-#ired to meet pecial e7igencie #ch a la#nching o e7tenie
marketing campaign or cond#cting reearch etc3
%emporar/ 0orking capital dier rom permanent 0orking capital in the ene that it i re-#ired or
hort period and cannot "e permanentl/ emplo/ed gain#ll/ in "#ine
Cal)*late )*rrent assets to 3iFe$ asset ratio
A irm need c#rrent and i7ed aet to #pport a partic#lar leel o o#tp#t3 'o0eer, to #pport the
ame leel o o#tp#t the irm can hae dierent leel o c#rrent aet3 A the irmG o#tp#t and
ale increae, the need or c#rrent aet increae3 Benerall/ the c#rrent aet do not increae in
direct proportion to o#tp#t Q c#rrent aet ma/ increae at a decreaing rate 0ith inp#t3 %hi
relationhip i "aed #pon the notion that it take a greater proportional inetment in c#rrent aet
0hen onl/ a e0 #nit o o#tp#t are prod#ced than it doe later on 0hen the irm can #e it c#rrent
aet more eicientl/3
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%he leel o the c#rrent aet can "e mea#red "/ relating c#rrent aet to i7ed aet3
%here are three policie4H
:0 coneratie c#rrent aet polic/7
CA2
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ESTIMATING WOR!ING CAPITA" NEE1S
:& "iK*i$it2 >s& Pro3ita8ilit27 Risk Ret*rn Tra$e O33&
%he irm 0o#ld make j#t eno#gh inetment in c#rrent aet i it 0ere poi"le to etimate 0orking
capital need e7actl/3 $nder perect certaint/, c#rrent aet holding 0o#ld "e at the minim#m leel3
A larger inetment in c#rrent aet #nder certaint/ 0o#ld mean a lo0 rate o ret#rn o inetment
or the irm, a e7ce inetment in c#rrent aet 0ill not earn eno#gh ret#rn3 A mall inet in
c#rrent aet, on the other hand, 0o#ld mean interr#pted prod#ction and ale, "eca#e o re-#ent
tockHc#t and ina"ilit/ to pa/ to creditor in time d#e to retrictie polic/3
A it i not poi"le to etimate 0orking capital need acc#ratel/, the irm m#t decide a"o#t leel
o c#rrent aet to "e carried3
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irm and it 0ill ace diic#ltie in o"taining #nd in the #t#re3 All thi ma/ orce the irm
into inolenc/3
Similarl/, the lo0 leel o tock 0ill re#lt in lo o ale and c#tomer ma/ hit to
competitor3 Alo, lo0 leel o de"tor ma/ "e d#e to right credit polic/, 0hich 0o#ld impair
ale #rther3 %h# the lo0 leel o c#rrent aet inole cot that increae a thi leel all3
Poli)ies 3or 3inan)ing )*rrent assets
HP#"lic depoit
"ONG TERM .INANCING4
%he o#rce o long term inancing incl#de ordinar/ hare capital, preerence hare capital
de"ent#re, long term "orro0ing rom inancial intit#tion and reere and #rpl#3 %he manage
it long term inancing rom capital reere, hare premi#m A2C, oreign project reere, "ond
redemption reere and general reere3
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S,ORT TERM .INANCING4
%he hort term inancing i o"tained or a period le than one /ear3 It i arranged in adance rom
"ank and other #pplier o hortHterm inance incl#de 0orking capital #nd rom "ank, p#"lic
depoit, commercial paper, actoring o receia"le etc3
%he Manage se)*re$loan a4H
19 )oan and adance rom "ank
59 Other loan and adance4
a9De"e"t#re2"ond
"9)oan rom State Bot3
c9)oan rom inancial intit#tion8ec#red "/ pledge o PS$
"ond and "ill accepted g#aranteed "/ "ank9
:9 Interet accr#ed and d#e on loan
8a9 rom State Bot3
8"9 rom inancial intit#tion "ond and other
%he Manage *nse)*re$loan a4 H
19 P#"lic depoit
59 Short term loan and adance4
a9
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"9
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:3 Aggreie Approach
Mat)+ing approa)+
%he irm can adopt a inancial plan 0hich matche the e7pected lie o aet 0ith the
e7pected lie o the o#rce o #nd raied to inance aet3 %h#, a ten /ear loan ma/ "e raied to
inance a plant 0ith an e7pected lie o ten /earQ tock o good to "e old in thirt/ da/ ma/ "e
inanced 0ith a thirt/ da/ commercial paper or a "ank loan3 %he j#tiication or the e7act matching
i that, ince the p#rpoe o inancing i to pa/ or aet, the o#rce o inancing and the aet ho#ld
"e relin-#ihed im#ltaneo#l/3 $ing long term inancing or hort term aet i e7penie a #nd
0ill not "e #tili6ed or the #ll period3 Similarl/, inancing long term aet 0ith hort term inancing
i cotl/ a 0ell a inconenient a arrangement or the ne0 hort term inancing 0ill hae to "e
made on a contin#ing "ai3
When the irm ollo0 matching approach 8alo kno0n a hedging approach9 long term
inancing 0ill "e #ed to inance i7ed aet and permanent c#rrent aet and hort term inancing
to inance temporar/ or aria"le c#rrent aet3 'o0 eer, it ho#ld "e reali6ed that e7act matching i
not poi"le "eca#e o the #ncertaint/ a"o#t the e7pected lie o aet3
%he irm i7ed aet and permanent c#rrent aet are inanced 0ith long term #nd and a
the leel o thee aet in increae, the long term inancing leel alo increae3 %he temporar/ or
aria"le c#rrent aet are inanced 0ith hort term #nd and a their leel increae, the leel o
hort term inancing alo increae3 $nder matching plan, no hort term inancing 0ill "e #ed i the
irm ha a i7ed c#rrent aet need onl/3
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Conservative approa)+
A irm in practice ma/ adopt a coneratie approach in inancing it c#rrent and i7ed aet3
%he inancing polic/ o the irm i aid to "e coneratie 0hen it depend more on long term #nd
or inancing need3 $nder a coneratie plan, the irm inance it permanent aet and alo a part
o temporar/ c#rrent aet 0ith long term inancing3 In the period 0hen the irm ha no need or
temporar/ c#rrent aet, the idle long term #nd can "e ineted in the trada"le ec#ritie to
conere li-#idit/3 %he coneratie plan relie heail/ on long term inancing and, thereore, the
irm ha le rik o acing the pro"lem o hortage o #nd3 %he coneratie inancing polic/ i
ho0n "elo03 (ote that 0hen the irm ha no temporar/ c#rrent aet, the long term #nd releaed
can "e ineted in marketa"le ec#ritie to "#ild #p the li-#idit/ poition o the irm3
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IMPORTANCE O. WOR!ING CAPITA"
:&Ti#e $evote$ to 6orking )apital #anage#ent7/
%he larget portion o inancial manager time i deoted to da/ to da/ internal operation the irm3
%hi ma/ "e appropriatel/ #m #p #nder the heading WORKI(B CAPI%A) MA(AB&M&(%&
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.ACTORS 1ETERMINING T,E WOR!ING CAPITA" REUIREMENT
:& NATURE O. USINESS7 /
%he re-#irement o 0orking capital i er/ limited in p#"lic #tilit/ #ndertaking #ch a &lectricit/,
Water S#ppl/ and Rail0a/ "eca#e the/ oer cah ale onl/ and #ppl/ erice not prod#ct and
no #nd are tied #p in inentorie and receia"le3 On the other hand, the trading and inancial irm
re-#ire le inetment in i7ed aet "#t hae to inet large amo#nt in c#rrent aet3 %he
man#act#ring #ndertaking re-#ire i6a"le amo#nt o 0orking capital along 0ith i7ed inetment3
ER7 /
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%here i an inere coHrelationhip "et0een the -#ant#m o 0orking capital and the elocit/ or peed
0ith 0hich the ale are aected3 A irm haing a higher rate o tock t#rnoer 0ill need lo0er
amo#nt o 0orking capital a compared to a irm haing a lo0 rate o t#rnoer3
5. CRE1IT PO"IC?4 H
Credit polic/ aect the 0orking capital re-#irement in t0o 0a/4
8a9 %erm o credit allo0ed "/ c#tomer to the irm,
8"9 %erm o credit aaila"le to the irm3
A concern that p#rchae it re-#irement on credit and ell it prod#ct2erice on cah
re-#ire leer amo#nt o 0orking capital and iceHera3
& WOR!ING CAPITA" C?C"E7 /
%he peed 0ith 0hich the 0orking c/cle complete one c/cle determine the re-#irement o
0orking capital3 )onger the c/cle larger i the re-#irement o 0orking capital3
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1ETORS
CAS, .INIS,E1
GOO1S
RAW MATERIA"WOR! IN
PROGRESS
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If you ... Then ...
Collect receia"le 8de"tor9
ater+o# releae cah
rom the c/cle
Collect receia"le 8de"tor9
lo0er+o#r receia"le
oak #p cah
Bet "etter credit 8in term o
d#ration or amo#nt9 rom
#pplier
+o# increae /o#r
cah reo#rce
;& RATE O. GROWT, AN1 EXPANSION O. USINESS7 /
%he larger i6e "#inee re-#ire more permanent and aria"le 0orking capital in comparion to
mall "#ine3 I a compan/ i gro0ing, it 0orking capital re-#irement 0ill alo go on increaing3
%h#, the gro0ing concern re-#ire more 0orking capital a compared to the ta"le ind#trie3
@& SEASONA" >ARIATION7 /
Benerall/, d#ring the "#/ eaon, a irm re-#ire larger 0orking capital than in the lack eaon3
B& USINESS ."UCTUATION7 /
In period o "oom, 0hen the "#ine i propero#, there i a need or larger amo#nt o 0orking
capital d#e to rie in ale, rie in price, optimitic e7panion o "#ine etc3 On the contrar/ in
time o depreion, the "#ine contract, ale decline, diic#ltie are aced in collection rom
de"tor and the irm ma/ hae a large amo#nt o 0orking capital idle3
:=& EARNING CAPACIT? AN1 1I>I1EN1 PO"IC? 7/
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Some irm hae more earning capacit/ than other d#e to -#alit/ o their prod#ct, monopol/
condition, etc3 S#ch irm ma/ generate cah proit rom operation and contri"#te to their 0orking
capital3 %he diidend polic/ alo eect the re-#irement o
0orking capital3 A irm maintaining a tead/ high rate o cah diidend irrepectie o it proit
need more 0orking capital than the irm that retain larger part o it proit and doe not pa/ o high
rate o cah diidend3
::&PRICE "E>E" C,ANGES7 /
Price leel change alo aect 0orking capital need3 I the price o dierent good increae, to
maintain ame leel o prod#ction, more 0orking capital i needed3
:AI"AI"IT? O. RAW MATERIA"7 /
Aaila"ilit/ o ra0 material on the contin#o "ai aect the re-#irement o 0orking capital3 %here
are certain t/pe o ra0 material, 0hich are not aaila"le reg#larl/3 In #ch a it#ation irm re-#ire
greater 0orking capital to meet the re-#irement o prod#ction3 Some ra0 material are aaila"le in
partic#lar eaon onl/ or e7ample 0ool, cotton, oil eed, etc3 %he/ hae to keep greater 0orking
capital3
:9& MAGNITU1E O. PRO.IT7 /
Magnit#de o proit i dierent or dierent "#inee3 (at#re o prod#ct, control on the market and
a"ilit/ o manager etc3 determine the -#ant#m o proit3 I the proit margin i high, it 0ill help to
arrange #nd internall/, 0hich 0ill alo increae the 0orking capital3
:& OT,ER .ACTOR7 /
a9 Operating eicienc/
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"9 Management a"ilit/
c9 Irreg#laritie o #ppl/
d9 Import polic/
e9 Aet tr#ct#re
9 Importance o la"or
CAPITA" MANAGEMENT
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%he .ank trie or the contin#al enhancement o hareholder al#e3 It capital management
rame0ork help to optimie the #e o capital "/ en#ring the right compoition o capital in relation
to "#ine gro0th and the eicient #e o capital thro#gh an optimal mi7 o prod#ct and erice3
D#ring the /ear, the .ank contin#ed to attract inetor interet rom dometic and oreign
intit#tional inetor, 0ith a i6ea"le increae in trading ol#me and price3 D#ring 5E1:H1=, the
.ank ha raied capital aggregating R3 1,?531 crore thro#gh Innoatie Perpet#al De"t
Intr#ment 8IPDI9, eligi"le a %ier I capital and %ier II capital in the orm o $pper %ier II and
#"ordinated "ond 8#nec#red redeema"le nonconerti"le de"ent#re93 O thi, the .ank ha raied
$S Dollar 55? million 8e-#ialent to R3 1E5:3E1 crore9 "/ 0a/ o '/"rid %ier I capital and $pper
%ier II capital rom Singapore #nder the M%( Programme3 %hi additional capital ena"led the .ank
to reinorce it gro0th trateg/ and hore #p it capital ade-#ac/ ratio3 Cone-#entl/, a on :1 March
5E1=, the .ank capital ade-#ac/ ratio roe to 113>@ rom 113E lat /ear3
%he ollo0ing ta"le et orth the rikH"aed capital, rikH0eighted aet and capital
ade-#ac/ ratio comp#ted in accordance 0ith the applica"le R.I g#ideline 5E3 %he .ank ha al0a/
oc#ed on innoation and dierentiation3 In thi direction, d#ring the /ear, the .ank ha opened
pecialied Priorit/ .anking "ranche or the high net0orth c#tomer egment3 Priorit/ .anking
"ranche hae "een conceied a a ingle top hop or al#ent C#tomer, catering to all their
"anking and inetment need, and the .ank i the irt to la#nch #ch a concept in India3
%hee "ranche are e7cl#ie "o#ti-#e "anking "ranche 0ith a pl#h am"ience catering to high
net0orth indiid#al, that take the Priorit/ .anking prod#ct to an e7periential leel, oering erice
in a dicreet manner 0hile maintaining comort and conidentialit/ or the c#tomer3 D#ring 5E1:H
1=, three #ch "ranche 0ere opened in the citie o P#ne, M#m"ai and Kolkata, 0ith plan to open
more #ch "ranche at other #r"an center in 5E11H153
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%he .ank i er/ enitie to the priac/ o it c#tomer and doe not engage in #nolicited
taleHcalling3 In thi regard, the .ank ha taken proactie mea#re to eek poitie c#tomer conent
on croHelling initiatie3 %he .ank la#nched project Sampark, 0hich inole meeting c#tomer
aceHtoHace at "ranch location, or o#tide A%M and eeking their 0ritten conent or croHelling
initiatie3 %he project i an intenie logitical e7ercie and "/ endHMarch 5E11, lac c#tomer
conent hae "een ac-#ired3 %hi gie the .ank a #ll/ compliant internal data"ae or croHell
initiatie #ch a or inetment adior/ erice and in#rance prod#ct3 %hi 0ill acilitate in
"ooting the ee income rom croHell o ario# prod#ct3 In it contant endeaor to proide
conenience to it c#tomer, the .ank ha "een aggreiel/ deeloping it alternatie "anking
channel, namel/ the A%M net0ork, Internet .anking and Mo"ile .anking3 %hee channel hae
receied oer0helming repone rom it c#tomer 0ith regitration and tranaction ig#re
increaing #"tantiall/ oer the preio# /ear3 D#ring the /ear, the .ank added 1555 A%M,
there"/ taking the net0ork i6e to 5=E5 on :1 March 5E1:3 %he .ank oer acce to it c#tomer
to oer 1,EEE A%M acro the co#ntr/ thro#gh "ilateral and m#ltilateral A%M haring
arrangement3 .eginning 5EE1, the .ank had identiied the A%M channel a a trong tool or
c#tomer ac-#iition and conenience3 At =3@E A%M per "ranch, the .ank ha the highet A%M to
"ranch ratio in the co#ntr/3 %he high A%M to "ranch ratio ha "een part o the gro0th trateg/ and
ha "een a major actor in the high gro0th o aing "ank depoit acco#nt and "alance3
Contin#ing 0ith it eort in proiding the #tmot in conenience and aet/ to it c#tomer, the
.ank ha promoted it mo"ile "anking erice to ena"le c#tomer to acce their acco#nt on their
mo"ile phone3 %he erice alo end o#t peciic tranaction alert on the mo"ile phone o
regitered c#tomer, inorming the c#tomer o the actiit/ in the acco#nt, there"/ giing an added
leel o aet/ to the c#tomer3 %he mo"ile channel ha o#nd increaing acceptance among the
.ank c#tomer3 D#ring the inancial /ear, =E o the incremental c#tomer igned on or mo"ile
"anking erice3 With 131E million c#tomer regitered or mo"ile "anking, the .ank ha among
the highet mo"ile regitration penetration leel among "ank c#tomer3 %he .ank i #ni-#el/
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CORPORATE AN!ING
Corporate .anking "#ine o the .ank proide -#alit/ prod#ct to large and midHi6ed client3
%he prod#ct incl#de credit, trade inance or dometic a 0ell a international tranaction,
tr#ct#red inance, and project inance and /ndication erice3
%he .ank contin#e to p#r#e a t0oHpronged trateg/ o 0idening the c#tomer "ae a 0ell a
deepening e7iting client relationhip3 Care#l choice o ne0 c#tomer "aed on appropriate rikH
ret#rn g#ideline orm the "ai or the trateg/ o 0idening the c#tomer "ae3 %he deepening o
e7iting client relationhip i achieed "/ a care#l acco#nt trateg/ oc#ing on increaing the
croHell o ario# corporate "anking prod#ct, a alo prod#ct rom other diiion o the .ank
incl#ding inetment "anking and retail prod#ct3
D#ring the /ear, large corporate adance gre0 "/ ?E to R3 1,:=? crore rom R3 11,5? crore
in the preio# /ear3 %he .ank took tep to oc# on ee income mainl/ rom trade inance acilitie
and doc#ment handling3 %hi method o ee generation i ta"le and #taining3 Bien the Increaing
oerea preence o the .ank, the trade inance "#ine i et to gro0 igniicantl/ oer the coming
/ear3 %he .ank take electie &7po#re to project inancing in area o inratr#ct#re a 0ell a
man#act#ring project et #p "/ rep#ted ind#tr/ gro#p3 It contantl/ 0ork to #pgrade it kill in
inancial tr#ct#ring to "e a"le to contin#e proiding al#e to it corporate c#tomer3
%he oerea preence ha ena"led the .ank to leerage it e7iting relationhip #rther "/ granting
loan to0ard &C. "/ Indian corporate a 0ell a to ena"le ac-#iition inancing3 %he .ank ha
alo contri"#ted to0ard inancing inratr#ct#re project and other orm o project inance thro#gh
it oerea "ranche3 Channel inance alo gre0 on the "ack o trong corporate demand3 %he
centralied Channel
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TREASUR?
%he integrated %rea#r/ manage the glo"al #nding o the "alance heet, dometic and oreign
c#rrenc/ reo#rce o the .ank, compliance 0ith tat#tor/ reere re-#irement, a 0ell a optimi6e
on opport#nitie in the market thro#gh managing proprietar/ poition in oreign e7change and
interet rate market3 With the e7panion o the .ank oerea, the %rea#r/ 0ill look to leerage on
the net0ork to 0iden prod#ct cope a 0ell a increae reen#e generation rom opport#nitie in the
glo"al market3
%he contin#ed thr#t on ma7imi6ing ret#rn rom c#tomer relationhip in the %rea#r/ ha re#lted
in gro0th o >1 in c#tomer e7change t#rnoer and ?E in reen#e3 %he %rea#r/ oered
tr#ct#red ol#tion to c#tomer #ing oreign e7change and deriatie oering, 0hich ha
re#lted in igniicant al#e addition to c#tomer relationhip3 In it contin#ed eort to oer top o
the line pa/ment ol#tion to c#tomer, the .ank ha oered Real %ime Bro Settlement 8R%BS9
and (ational &lectronic 1 oer the preio# /ear3 Depite a challenging
interet rate enironment, the .ank holding in goernment ec#ritie ha "een #"tantiall/
protected rom market rik a it i held a per peciied g#ideline o R.I3 %he portolio gae a ret#rn
o @3?=3 %he .ank eta"lihed a Medi#m %erm (ote 8M%(9 Programme or ro One "illion a a
part o the #nding plan or it oerea operation3
D#ring the /ear, the .ank raied $SD 1>E million a $pper %ierHII 8the irt h/"rid capital i#ance
o#t o India9 and $SD =? million a '/"rid %ierHI capital in term o recent g#ideline i#ed "/
R.I3 %he .ank alo raied enior de"t thro#gh the i#ance o $SD 5>E million o threeH/ear
loating rate note 8
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USINESS AN!ING
.#ine .anking ha conitentl/ oc#ed on proc#ring lo0 cot #nd "/ oering a range o
c#rrent acco#nt prod#ct and cah management ol#tion acro all "#ine egment coering
corporate, intit#tion, Central and State Boernment Minitrie and $ndertaking a 0ell a mall
"#ine c#tomer3 Cro elling o tranactional "anking prod#ct to deelop acco#nt relationhip,
aided "/ prod#ct innoation and a c#tomerHcentric approach hae "orne r#it in the orm o gro0ing
c#rrent acco#nt depoit "alance and increaing realiation o tranaction "anking ee3 So#rcing o
c#rrent acco#nt depoit i a oc# area or gro0th3 A o :1 March 5E11, c#rrent acco#nt depoit
gre0 "/ =13: to R3 11,:E=3:1 crore rom R3 @,@E3E crore in the preio# /ear3 On a dail/
aerage "ai, c#rrent acco#nt depoit gre0 rom a leel o R3 =,=5 crore or the /ear 5EEH1E to
R3 @,1: crore or the /ear 5E1EH113 D#ring 5E15H1:, the .ank o#rced @,>@ ne0 c#rrent
acco#nt a againt @@,5?= in the preio# /ear3 %here 0a a greater oc# on ac-#iition o high
al#e c#rrent acco#nt, th# accelerating the pace o gro0th in c#rrent acco#nt depoit "alance
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CAS, MANAGEMENT
Cah Management Serice 8CMS9 initiatie leeraged the .ank gro0ing "ranch net 0ork and
ro"#t technolog/ to proide a 0ide range o c#tomied ol#tion to #it the d/namic re-#irement
o it client3 %he .ank oer CMS ol#tion or collection and pa/ment 0ith an ideal "lend o
tr#ct#red MIS and #nd moement o that client are a"le to enhance their #nd management
capa"ilitie3 Alo the .ank We" CMS initiatie allo0 them to ie0 their dail/ tranaction on a
real time "ai3 %he trong correpondent "ank alliance 0ith partner "ank oer corporate client a
0ide geographical coerage3 CMS ora/ i not onl/ emerging a an important o#rce o ee income
"#t i alo contri"#ting igniicantl/ to0ard garnering 6ero cot #nd, orging large relationhip3
%he .ank ha eta"lihed a trong preence "/ oering collecting "ank erice in the IPO21
A#thoried .ranche3 Additionall/, the .ank i proiding collection and pa/ment erice to o#r
Central Boernment Minitrie and Department and een State Boernment and $nion
%erritorie3 %he .ank ha #rther trengthened it aociation 0ith the eHBoernance initiatie o
ario# State Boernment in India aimed at proiding "etter citi6en erice "/ etting #p integrated
citi6en acilitation center3 D#ring the /ear, the .ank aociated 0ith the Choice Project o the
Boernment o Chhattigarh and the eHS#idha initiatie o Boernment o $ttar Pradeh3 D#ring
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5E1EH11, the .ank ha alo e7tended the "#ine o Stamp D#t/ Collection thro#gh ranking in
Rajathan, in addition to Maharahtra and B#jarat3 %he .ank alo la#nched an eH%a7 Pa/ment
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"EN1ING TO AGRICU"TURE5 SME AN1 MI1 CORPORATES
%o #ll/ e7ploit the "#ine potential o the Small and Medi#m &nterprie 8SM&9 and Mid
Corporate egment, to "ring greater oc# on priorit/ ector lending, to achiee the mall cale
ind#tr/ and agric#lt#ral lending target i7ed "/ R.I and to e7plore ne0 aen#e o lending like
microinance, a eparate "#ine oc# 0a proided d#ring the /ear3
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comm#nit/3 %he .ank alo ineHt#ned it e7iting loan prod#ct to #ll/ #it the aried re-#irement
o it agric#lt#re "#ine clientele3 D#ring the /ear, the total agric#lt#ral adance o the .ank gre0
"/ an impreie 11>, 0ith direct agric#lt#ral lending recording a 1 gro0th oer the preio#
/ear3 %h#, or the econd /ear in #cceion, the .ank direct agric#lt#ral lending ha gro0n "/
oer E3 At the end o the /ear, direct agric#lt#ral adance tood at 3> o the net "ank credit,
0hich i the highet eer achieed "/ the .ank3 %he .ank 0o#ld contin#e the oc# on "#ilding #p
it agric#lt#re "#ine on proita"le line and i recr#iting agric#lt#re "#ine peronnel to #tain
gro0th plan and maintain portolio -#alit/3
%he microHinance "#ine o the .ank 0itneed increaing o#treach thro#gh ?= microHinance
relationhip3 %he portolio #nder microHinance increaed "/ 1?1 d#ring the /ear, 0hich
correpond to a client o#treach o ?3?5 lac, the majorit/ "eing poor 0omen in r#ral area3 %he .ank
alo initiated the proce o e7tending micro credit to elHhelp gro#p thro#gh illage organiation3
%he .ank ha alo "een implementing ario# goernmentHponored cheme3 With a ie0 to
e7panding o#r reach in the (ortheatern region o the co#ntr/, the .ank ha igned a Memorand#m
o $ndertanding 0ith So#th Aia &nterprie Deelopment
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1ESIGN O.STU1?
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C,APTER/ 9& 1ESIGN O. STU1?
RESEARC, MET,O1O"G?
%he methodolog/ decri"e the proce o reearch 0ork3 %hi contain the oerall reearch deign,
the data collection method, the ampling proced#re, the ield #re/ method and the anal/i
proced#re3
Decriptie Reearch
Primaril/ "aed on primar/ data collection3
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T,E STU1?
RESEARC, 1ESIGN
A Reearch deign i a rame0ork or "l#eprint or cond#cting the marketing reearch project3
EFplorator2 Resear)+
P#rpoe &7plorator/ Reearch
ES O. T,E STU1?
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%he ollo0ing are the o"jectie o reearch cond#cted4
%o #ndertand the trategie o "ank3
%o #ndertand the "anking ind#tr/3
%o #ndertand the compan/G #nction3
%o #gget 0a/ or improing the market hare, proit margin3
%o make an eectie adertiing campaign3
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"ITERATURE RE>IEW
Doing a )iterat#re Reie0 i a practical and comprehenie g#ide to reearching, preparing and
0riting a literat#re reie0, a major component o reearch project3 It i an eential tool not onl/
or potgrad#ate t#dent "#t alo or #ndergrad#ate and noice reearcher acro the ocial
cience and h#manitie3
A literat#re reie0 i an e7amination o the reearch that ha "een cond#cted in a partic#lar ield o
t#d/3 'art 819 deine it a4
%he election o aaila"le doc#ment 8"oth p#"lihed and #np#"lihed9 on the topic, 0hich
contain inormation, idea, data and eidence3 %hi election iT 0ritten rom a partic#lar
tandpoint to #lil certain aim or e7pre certain ie0 on the nat#re o the topic and ho0 it
i to "e inetigated, and
%he eectie eal#ation o thee doc#ment in relation to the reearch "eing propoed
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1ATA CO""ECTION MET,O1S
Data Collection i an important apect o an/ t/pe o reearch t#d/3 Inacc#rate data collection can
impact the re#lt o a t#d/ and #ltimatel/ lead to inalid re#lt3
Data collection method or impact eal#ation ar/ along a contin##m3 At the one end o thi
contin##m are -#antatatie method and at the other end o the contin##m are #alitatie method
or data collection
*antitative an$ *alitative 1ata )olle)tion #et+o$s
%he *antitative $ata )olle)tion #et+o$s, rel/ on random ampling and tr#ct#red data collection
intr#ment that it diere e7perience into predetermined repone categorie3 %he/ prod#ce re#lt
that are ea/ to #mmari6e, compare, and generali6e3
#antitatie reearch i concerned 0ith teting h/pothee deried rom theor/ and2or "eing a"le to
etimate the i6e o a phenomenon o interet3 Depending on the reearch -#etion, participant ma/
"e randoml/ aigned to dierent treatment3 I thi i not eai"le, the reearcher ma/ collect data
on participant and it#ational characteritic in order to tatiticall/ control or their inl#ence on the
dependent, or o#tcome, aria"le3 I the intent i to generali6e rom the reearch participant to a
larger pop#lation, the reearcher 0ill emplo/ pro"a"ilit/ ampling to elect participant3
%/pical -#antitatie data gathering trategie incl#de4
&7periment2clinical trial3
O"ering and recording 0ellHdeined eent 8e3g3, co#nting the n#m"er o patient 0aiting in
emergenc/ at peciied time o the da/93
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O"taining releant data rom management inormation /tem3
Adminitering #re/ 0ith cloedHended -#etion 8e3g3, aceHto ace and telephone
interie0, -#etionnaire etc93
1ATA CO""ECTION SOURCES
Poert/ map are not onl/ inl#enced "/ the election o a concept#al approach to deine poert/ and
"/ the choice o a peciic poert/ indicator3 %he data collection method itel can determine the
reol#tion o the poert/ map and the t/pe o anal/i to cond#ct3
A "rie reie0 o dierent data collection method 0ill highlight the pro and con o ario#
#"jectie and o"jectie method and the tradeHo "et0een #re/ and cen# data3 A hort ection
#mmari6ing major o#rce or international poert/ map 0ill ho0 that the pool o e7iting data
or a glo"al poert/ map i limited3 Additional inetment in data collection and modeling need to
"e made to prod#ce map 0ith higher reol#tion, more comprehenie poert/ mea#re, and a 0ider
international co#ntr/ coerage3
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ANA"?SISO.
1ATA
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C,APTER/ & ANA"?SIS O. 1ATA
MANAGEMENT 1ISCUSSION AN1 ANA"?SIS
$"C0#- in
the econd hal o the /ear, R.I anno#nced #rther mea#re to tem inlationar/ e7pectation and
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alo to contain the credit gro0th that p#t pre#re on the li-#idit/ poition, there"/ hardening interet
rate in the econom/3
Bro0th trend 0ere accompanied "/ ro"#tne o oerall macroHeconomic #ndamental,
partic#larl/ 0ith tangi"le progre to0ard ical conolidation and a trong "alance o pa/ment
poition3 With an #p#rge in inetment, the o#tlook i ditinctl/ #p"eat3 'o0eer, the major
challenge lie in taking macroHeconomic leel correctie action to tackle the #ppl/ ide contraint
to keep inlation at an accepta"le leel3 Interet rate hae alread/ ho0n ign o hardening, 0hich
ma/ aect #rther inetment in the ind#trial ector3 In order to maintain the BDP gro0th oer
in the coming /ear, the major challenge lie in "alancing o c#rrent pace o gro0th 0ith nonH
accelerating inlation3 %he c#rrent polic/ mea#re adopted "/ monetar/ a#thoritie to tighten
li-#idit/ in order to ight inlation led to an increae in interet rate, 0hich co#ld lo0 do0n
economic gro0th in the coming /ear, partic#larl/ in repect o inratr#ct#re and other core ector
project3
Againt the "ackdrop o generall/ trong economic #ndamental in the lat /ear, the "anking /tem
eem to hae done 0ell d#ring 5E1EH11, relected in the gro0th o "#ine in the orm o aggregate
depoit and adance3 In term o the Weekl/ Statitical S#pplement p#"lihed "/ R.I, the
aggregate depoit o All Sched#led Commercial .ank 8ASC.9 a on :E March 5E1: hae gro0n
"/ 5=35@ rom :1 March 5E15, 0hile "ank credit ha gro0n "/ 53>13 'o0eer, there contin#e
to "e area o concern, primaril/ hardening interet rate that ma/ re#lt in pre#re #pon the net
interet margin3 %he contin#ing rie in interet rate ma/ make ario# project economicall/
#nia"le, re#lting in higher (PA and alo aect al#ation3 )atl/, the harp increae in proiion
on tandard aet 0ill impact the proita"ilit/ o "ank3
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margin to hae "een #nder greater pre#re3 %he "ank, tho#gh, appear to hae in#lated #ch
pre#re3 Interet margin, 0hile the/ hae declined rom the :31> per cent een in 5EE:HE=, are till
hoering cloe to the : per cent mark3 8%he compara"le margin or ICICI .ank and 'D
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GRAP,S
RATE O. 1I>E1EN1 1EC"AIRE1 ? AXIS AN!
+&AR DI*&D&(D
5EE:H5EE= 15
5EE=HE> 1>
5EE>HE? 5E
5EE?HE@ 55
5EE@HE 5>
5EEHE 5
5EEH1E :>
5E1EH11 =>
5E11H15 ?EV
RETAI" "IAI"ITIES
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+&AR
S. D&POSI% 8RS3
CROR&9
5EE?H5EE@ 1=5:
5EE@H5EE 5>>
5EEH5EE =1
5EEH5E1E E?1
5E1EH5E11 151?>
RETAI" "IAI"ITIES
+&AR R&%AI)
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D&POSI%8RS3CROR&9
5EE?H5EE@ ==1
5EE@H5EE ?5?
5EEH5EE ?1?
5EEH5E1E 1:?1
5E1EH5E11 155E
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EN,ANCING S,ARE ,O"1ER >A"UE O. AXIS AN!
TA"ES
RATIO ANA"?SIS O. AXIS AN!
Mar E Mar E@ Mar E? Mar E> Mar E=
Capital Ade-#ac/ E3EE 113>@ 113E 153?? 11351
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Ratio&AR(I(BS
RA%IOS
Income rom
1 =53>? :?35
Operating
Income a a o
Working
= 5=3E1
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On (et WorthReported Ret#rn
On (et Worth15351 13=5 1?3 1:3 5=3=
.ORROWI(B
RA%IOS.orro0ing rom
R.I a to %otal
.orro0ing
E3EE E3EE E3EE E3EE E3EE
.orro0ing rom
other "ank a a
to %otal
.orro0ing
E3EE 113>= :53:@ 3>> 13?1
.orro0ing rom
other a a to
%otal .orro0ing
1EE3EE 5:31@ =>3?= ?:3=5 >@3:?
.orro0ing
0ithin India a a
to %otal
.orro0ing
1EE3EE :=3@1 @3E5 @53 @>3@
.orro0ing rom
o#tide India a a
to %otal
.orro0ing
E3EE ?>35 513@ 5@3E1 5=3E5
D&POSI%
RA%IOS
Demand Depoit 1EE3EE 1355 13? 553>? 5>3@=
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o %otal DepoitSaing Depoit
o %otal DepoitE3EE 5E3?5 5E31E 1>3=5 153::
%ime Depoit o
%otal DepoitE3EE ?E31= ?E3E5 ?53E1 ?135
Depoit 0ithin
India a to
%otal Depoit
3?: 1EE3EE 1EE3EE 1EE3EE
Depoit O#tide
India a to
%otal Depoit
E3:? E3EE E3EE E3EE
P&R .RA(C'
RA%IOSOperating
Income Per
.ranch
3@= @3 ?3@ 3:
Operating Proit
Per .ranch531: 5311 135 13?
(et Proit Per
.ranch131 13E E3? 13E
Peronnel
&7pene Per
.ranch
E3? E3>: E3>5 E3=
Adminitratie
&7pene Per
.ranch
13>= 135 E3 13?
3:= =3E5 :3>5 =3E>
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&7pene Per
.ranch.orro0ing Per
.ranch35? >3? >35> 53E
Depoit Per
.ranch1E=3@ 31= :3>> :31>
P&R
&MP)O+&&
RA%IOS8R3 in $nit9Operating
Income Per
&mplo/ee
>,=@5,>=53: >,=>,5E?3@ =,5,5=3E? ?,1:@,5@3??
Operating Proit
Per &mplo/ee1,1>,=@?3?> 1,=>1,E>3E@ 1,5:,5=>3? 1,=:E,@=3
(et Proit Per
&mplo/ee??:,5?=3: @=5,:3@@ ?>,E3= @1,?:=31@
Peronnel
&7pene Per
&mplo/ee
:5,11E3:5 :??,>>53=5 :@1,=?>3?? :>1,@>>31>
Depoit Per
&mplo/ee>,E:,=E@35 ?1,51:,>3>@ ??,?E@,>>3@E ?E,@,E311
E,::3@ :=,E>1,:13E5 :5,@@5,:?53@= 5@,1?5,>E3??
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SWOT ANA"?SIS .OR T,E AXIS
STRENGT,S7
'igh -#alit/ erice proide
Strong and 0ell management3
Second larget priate "ank all oer India
A;IS .ank ha "een to a"le maintain the -#alit/ o it loan portolio
WEA!NESSES7
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Strengthening o r#pee hitting proit
A"ilit/ to pa thro#gh price increae in ario# market d#e to
Intene competition3
Manpo0er pro"lem i "ig pro"lem3
OPPORTUNITIES7
Deelopment o modern "anking3
Potential or gro0th thro#gh increaed penetration3
Opport#nit/ to no41 "ank all oer india
Increaing pop#larit/ in oerea market
T,REATSC,A""ENGES7
&nironment 0ith diere pla/er
Riing competitor or priate "anking
Change in ical "eneit2la0
People attraction retention
Management o co#ntr/ rik3
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.IN1INGS
C,APTER/ D& .IN1INGS
'ere lot o thing I ind to make thi project report3
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Secondl/ kno0n there operation /tem3
%hirdl/ kno0n there controlling rik management3
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identiied rik3 %he .ank, ince the inception o the Rik Department, ha deeloped inHho#e kill
to manage ke/ area o rik i63, credit rik, market rik and operational rik3
Cre$it Risk
Credit rik coer the ina"ilit/ o a "orro0er or co#nterHpart/ to hono#r commitment #nder an
agreement and an/ #ch ail#re ha adere impact on the inancial perormance o the .ank3
Accordingl/, the .ank trie to eectiel/ ae, adminiter, monitor and enorce recoer/ o loan
to ario# client3
%he Additional mea#re o rik containment at the indiid#al e7po#re and at the portolio leel
are4
Rating linked e7po#re norm adopted "/ the .ank are coneratie in comparion to the
reg#lator/ pr#dential e7po#re norm3
Ind#tr/H0ie e7po#re ceiling are "aed on the ind#tr/ perormance, propect and the
competitiene o the ector3
&7po#re 0ith "#llet repa/ment, long getation project, longer tenor e7po#re, and longer
moratori#m are aeed 0ith additional care3
Committee o Director Rik Management Committee
A#dit Committee .oard o Director
Credit Committee A)CO Operational Rik
Inetment Committee Management Committee
5 Ditri"#tion o Credit Rik Aet "/ Aet #alit/
Ind#tr/ anal/i pla/ an important part in aeing the potential concentration rik rom 0ithin the
loan portolio3 Partic#lar attention i gien to ind#tr/ ector 0here the .ank "eliee there i a high
degree o rik or potential or olatilit/ in the #t#re33
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Cons*#er Cre$it Risk Manage#ent
%he .ank contin#ing aggreie ora/ into retail "anking ha re#lted in a harp "#ild #p in the
retail aet portolio3 %he ke/ challenge or a health/ retail aet portolio i to en#re a ta"le rik
adj#ted earning tream "/ maintaining c#tomer dea#lt 0ithin accepta"le leel3 %he .ank
periodicall/ carrie o#t a comprehenie portolio leel anal/i o retail aet portolio 0ith a rik
ret#rn perpectie3 Rik mea#rement or the retail portolio i aeed primaril/ on a credit coring
"ai3 D#ring the /ear, the .ank ha initiated a project to reamp it e7iting credit coring model
or retail aet 0ith e7ternal #pport rom a rep#ted international endor3
Market Risk
Market rik i the rik to the .ank earning and capital d#e to change in the market leel o
interet rate or price o ec#ritie, oreign e7change and e-#itie, a 0ell a the olatilitie o thoe
change3 %he .ank i e7poed to market rik thro#gh it trading actiitie, 0hich are carried o#t "oth
or c#tomer and on a proprietar/ "ai3 %he .ank adopt a comprehenie approach to market rik
management or it trading, inetment and aet2lia"ilit/ portolio3 %he .ank #e ario# rik
metric, "oth tatitical and nonHtatitical, incl#ding nonHtatitical mea#re like poition, gap and
enitiitie 8d#ration, P*.P, option Breek9Q *al#e at Rik 8*aR9Q enitiit/ o net interet income
8&aR9Q and enitiit/ o the &conomic *al#e o &-#it/ 8&*&93
"iK*i$it2 Risk
)i-#idit/ rik arie in an/ "ank general #nding o it actiitie3 A part o the li-#idit/
management contingenc/ planning, the .ank aee potential trend, demand, eent and
#ncertaintie that co#ld reaona"l/ re#lt in an adere li-#idit/ condition3 %he .ank conider the
impact o thee potential change on it o#rce o hort term #nding and long term li-#idit/
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planning3 %he .ank A)M polic/ deine the gap limit or the tr#ct#ral li-#idit/ and the li-#idit/
proile o the .ank i anal/ed on a tatic a alo a d/namic "ai "/ tracking all cah inlo0 and
o#tlo0 in the mat#rit/ ladder "aed on the e7pected occ#rrence o cah lo03 %he .ank
#ndertake "ehaio#ral anal/i o the nonHmat#rit/ prod#ct i63 aing and c#rrent depoit and
cah credit2 oerdrat acco#nt, on a periodic "ai to acertain the olatilit/ o reid#al "alance in
thoe acco#nt3 %he rene0al pattern and premat#re 0ithdra0al o term depoit and dra0 do0n o
#naailed credit limit are alo capt#red thro#gh "ehaio#ral t#die3
Co*ntr2 Risk
%he .ank ha p#t in place a rik monitoring /tem or the management o co#ntr/ rik3 %he .ank
#e the eenHcategor/ claiication i63 inigniicant, lo0, moderate, high, er/ high, retricted
and oHcredit ollo0ed "/ the &7port Credit B#arantee Corporation o India )td3 8&CBC9 and
rating o international rating agenc/ D#n .radtreet or monitoring the co#ntr/ e7po#re3 %he
rating o co#ntrie are "eing #ndertaken at monthl/ interal or at more re-#ent interal i the
it#ation o 0arrant i3e3 in cae o a igniicant change in the condition o a co#ntr/ inoling harp
deterioration o it rating3 &7po#re to a co#ntr/ incl#de all creditHrelated lending, trading and
inetment actiitie, 0hether cro "order or locall/ #nded3 %he .ank ha et #p e7po#re limit or
each rik categor/ a alo indiid#al co#ntr/ e7po#re limit, and the e7po#re limit are generall/
monitored at 0eekl/ interal3
Operational Risk
Operational rik i the rik o lo re#lting rom inade-#ate or ailed internal procee, people or
/tem, or normal e7ternal eent3 %he .ank i in the proce o rolling o#t a ot0are ol#tion or
an operational rik management rame0ork 0ith emphai on identiication o ke/ rik indicator at
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the #nit leel, monitoring identiied rik at the #nit leel and then aggregating at a higher
organi6ational leel3 %he "#ine #nit p#t in place the "aeline internal control a approed "/ the
Prod#ct Management Committee to en#re a o#nd and 0ell controlled operating enironment
thro#gho#t the organi6ation3 &ach ne0 prod#ct or erice introd#ced i #"ject to a rigoro# rik
reie0 and igno proce 0here all releant rik are identiied and aeed "/ department
independent o the rik taking #nit propoing the prod#ct3 *ariation o e7iting prod#ct, a 0ell a
o#to#rcing, are alo #"ject to a imilar proce3
Rik Management rame0ork or Oerea Operation3
%he .ank ha p#t in place a comprehenie Rik Management polic/ or it glo"al operation and
ha alo orm#lated co#ntr/ peciic rik polic/ or thee operation "aed on the hot co#ntr/
reg#lator g#ideline3 %he Aet )ia"ilit/ Management and all the rik e7po#re or the oerea
operation are monitored centrall/ "/ implementing o#nd /tem and control, and alo "/
adopting the norm a peciied "/ the reg#lator in the hot co#ntr/3
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CONC"USION
C,APTER/ . CONC"USION
%he "anking ind#tr/ market capitali6ation made a #"tantial decline3 Mot inetor are
concerned 0ith 0hether the ind#tr/ can #tain contin#ed proita"ilit/ a a re#lt o thee actor3
.ank hae reponded in recent /ear to thee pro"lem "/ dieri/ing a0a/ rom interet enitie
prod#ct and erice3 .#t interet rate are the #ndamental apect o an/ inancial erice3
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I "eliee the inancial erice ind#tr/ 0ill "e deepl/ aected "/ rie Interet rate hae
alread/ ho0n ign o hardening, 0hich ma/ aect #rther inetment in the ind#trial ector3 In
order to maintain the BDP gro0th oer in the coming /ear, the major challenge lie in "alancing
o c#rrent pace o gro0th 0ith nonHaccelerating inlation3 %he c#rrent polic/ mea#re adopted "/
monetar/ a#thoritie to tighten li-#idit/ in order to ight inlation led to an increae in interet rate,
0hich co#ld lo0 do0n economic gro0th in the coming /ear, partic#larl/ in repect o inratr#ct#re
and other core ector project3ng interet rate3
A7i .ank tand apart rom it priate ector competitor U ICICI .ankand 'D
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%echnolog/ ho#ld improe in "anking ector "eca#e ne0 technolog/ replace traditional
"anking and red#ced peronnel cot3
.ank ho#ld oled the pro"lem o lack o eicient emplo/ee , o that man po0er co#ld not
"ecome a h#rdle in #cce o "ank3
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RE.ERENCES
RE.ERENCES H II"IOGRAP,?
Web sites.
0003google3com
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0003a7i"ank3com
0003ragadirect3com
0003altaita3com
0003an0er3com
0003lidehare3com
0003managementparadie3com
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http://www.axisbank.com/http://www.ragadirect.com/http://www.altavista.com/http://www.answers.com/http://www.slideshare.com/http://www.managementparadise.com/http://www.axisbank.com/http://www.ragadirect.com/http://www.altavista.com/http://www.answers.com/http://www.slideshare.com/http://www.managementparadise.com/8/9/2019 WORKING CAPITAL MANAGEMENT of axis bank Finance Research 2014 (2).doc
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ANNEXURE
UESTIONNAIRE
13 What i /o#r #ll time proeionX
a9 .#ine "9 Bot3 Serice
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A3 D#ration o 0orkingX
a9 .elo0 ? month "9 ? month Y 1 /ear
c9 1 Y 5 /ear d9 5 Y : /ear
e9 A"oe : /ear
.3 Ann#al Prod#ctiit/ gien to compan/X
a9 .elo0 >E,EEE "9 >E,EEE Y 1, EE,EEE
c9 1, EE,EEE Y 5, EE,EEE d9 5, EE,EEE Y :, EE,EEE
e9 :, EE,EEE Y =, EE,EEE 9 A"oe :, EE,EEE
C3 Are /o# atiied 0ith /o#r compan/X
a9 +e "9 (o
D3 Which age gro#p do /o# "elongX
a9 .elo0 5> "9 5> Y :E
c9 :E Y :> d9 A"oe :>
&3 Are /o# marriedX
a9 +e "9 (o
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:1HE:H5E15 :1HE:H5E11
8R3 in EEE9 8R3 in EEE9
Cah lo0 rom operating actiitie
(et proit "eore ta7e ,?5,:? @,:1:,E11
Adj#tment or4
Depreciation on i7ed aet 1,11,?=E 51,::
Depreciation on inetment ??,??? :=,1>
Amortiation o premi#m on @=? @>=>@
'eld to Mat#rit/ inetment
Proiion or (on Perorming
Adance2Inetment 8net o "ad de"t9 @:@,:@E 1,5@E,=@
Beneral proiion on
Sec#ritied aet 5>,=EE 8=,EEE9
Proiion on tandard aet 1,55:,>EE ==?,EE
Beneral proiion or retail aet 1@,@EE EE
Proiion or 0ealth ta7 5,=@ 1,=>@
)o on ale o i7ed aet 5,1E1 1?,5
Amortiation o deerred
emplo/ee compenation 5@,E?@ ?:,5:>
%OA%A) 1=,EE,E: 1E,=E,:=E
Adj#tment or4
8Increae92Decreae
in inetment 851,E=5,@9 8=?,5,:>:9
8Increae92Decreae
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in adance 81=?,:E@,=@9 8?,5==,>=9
Increae2 8Decreae9
In "orro0ing 5>,1=?,@1: ,>,5E:
Increae2 8Decreae9
In depoit 1?,@5E,? =,E1>,:15
8Increae92Decreae
In other aet 81,:1,@=E9 =,>,15=
Increae28Decreae9 in
Other lia"ilitie proiion 81=,=>19 11,>=:,:?
Direct ta7e paid 8=,15,5?19 8:,1=@,@19
(et cah lo0 rom
Operating actiitie >5,>>,5? 5,=E1,?5
Cah lo0 rom ineting actiitie
P#rchae o i7ed aet 85,55>,?:9 81,=@:,:59
8Increae92Decreae in 'eld to
Mat#rit/ Inetment 8:=,:?=,?=?9 81,>=5,=9
Proceed rom ale
o i7ed aet :=,>> =5,5:>
(et cah #ed in
Ineting actiitie 8:?,>>>,@>=9 85E,@=,?19
Cah lo0 rom inancing actiitie
Proceed rom i#e o
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S#"ordinated de"t 8net o repa/ment9 :,::,EEE 1E,EEE,EEE
Proceed rom i#e o Perpet#al
De"t and $pper %ier II intr#ment 1:,@:>,15E H
Proceed rom i#e o Share Capital 5,=E1 =,=:
Proceed rom Share Premi#m
8(et o hare i#e e7pene9 ::E,E5> EE,>5=
Pa/ment o Diidend 81,11@,=1?9 8@,=1E9
(et cah generated rom
@
:
CAS, ."OW STATEMENT
'.OR T,E ?EAR EN1E1 9: MARC, 9 H
(et increae in cah and
cah e-#ialent :5,@?=,?5 8,?1E,=59
Cah and cah e-#ialent
a at 1 April 5E11 :?,=1,=55 =>,E5,:?=
Cah and cah e-#ialent
A at :1 March 5E15 ?,1:,E>1 :?,=1,=55
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PRO.IT AN1 "OSS ACCOUNT
Sched#le (o3 8R3 in %ho#and9
I I(COM&
Interet earned 1: =>,?E:,=:
Other income 1= 1E,E,E?>
%O%A) >>,@E:,EE
II &;P&(DI%$R&
Interet e7pended 1> 5,:1,@?@
Operating e7pene 1? 15,1:,>5
Proiion and contingencie 1@8>31319 @,E:>,1@:
%O%A) =,1?E,>:5
Propoed Diidend 8incl#de ta7 on diidend9 1,=@,1 III CO(SO)IDA%&D (&%
PRO=5,=@?
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.alance in Proit )o acco#nt "ro#ght
or0ard rom preio# /ear @,:1E,:E
$tili6ation or &mplo/ee .eneit Proiion #nder
Acco#nting Standard 8AS9H1> 8Reied9 1@ 8=31E9 8:1,E59
I* AMO$(% A*AI)A.)& :=,:
* APPROPRIA%IO(S4
%raner to Stat#tor/ Reere 1,?=@,>@1
%raner to Capital Reere 1>?,=1>
.alance in Proit )o acco#nt carried or0ard 1E,5=5,::
%O%A) 1:,>:=,:
*I &AR(I(BS P&R &$I%+ S'AR& 1@ 8>313=9
8
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Sched#le reerred to a"oe orm an integral part o the
Conolidated Proit and )o Acco#nt
A per o#r report o een date
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A"ANCES,EET AS ON 9:ST MARC,
&mplo/ee Stock
Option O#ttanding 8(et9 1@8=31>9 ,@:
Depoit : >@,>E,55@
.orro0ing = >1,>?,E:E
Other lia"ilitie and proiion > >,@@,5>
%O%A) @:5,>>,@5
ASS&%S
Cah and .alance 0ith
Reere .ank o India ? =?,?1E,:E:
.alance 0ith "ank and
mone/ at call and hort notice @ 55,>@5,@=
Inetment 5?,@1,?E>
Adance :?, @?=,?E
Other Aet 11 1,?5,1?1
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%O%A) @:5,>>,@5
Contingent lia"ilitie 15 1,=1,?>:,>E1
.ill or collection ?5,@=?,::5
Signiicant Acco#nting Policie
And (ote to Acco#nt 1@
Sched#le reerred to a"oe orm an integral part o the Conolidated .alance SheetA per o#r report
o een date