Axis Bank Performance Analysis

PROFITABILITY ANALYSIS
Mar-16 Mar-17

Rs in Crore Rs in Crore
1 Total Assets 5463866133 6115464153
2 Earning Assets
Balances with RBI 223611562 308579478
Balances with Banks in Deposit Accounts
Balances with Banks & money at Call & Short Notice 113416529 201081701
Balances with Banks Outside India
Investments + 1313986431 1290183496
Advances + 3446633156 3811646673
Fixed Assets 35737637 38102336
Other Assets 330480818 465870469
Total Earning Assets 5,097,647,678 5,611,491,348

3 Interest bearing Liabilities

Saving Deposits 1057934225 1260484706
Term & Other Deposits 2525087707 2889342046
Borrowings 1138477320 1124547615
Subordinated Debt
Total Interest bearing liabilities 4,721,499,252 5,274,374,367
Other Liabilities 206779304 276442238
Equity Capital 4765664 4790072
Reserves 530821913 559013433
Total Equity 535,587,577 563,803,505
Total Liabilities 5463866133 6114620110

5 Interest Income 414092495 451750929

6 Interest Expenditure 243442343 267893474
Off plus PLL and Recoveries
Total taxes paid
Salaries and wages 40,193,437 47,420,971
Total expenses 430,066,413 536,296,658
10 Non-interest operating income 99549760 124216034
11 OR 513642255 575966963
12 Non-interest operating Expenditure 106113710 127256277
13 Provisions and Contingencies 80510360 141146907
Short term securities
Long term debt
NPA 60875100 212804800
Provisions and Contingencies include provision for tax
Provision for loan losses 38004587 111570646
Profit before tax 126820480 5576753
Tax Paid 43244638 -34093552
Profit After tax 83575842 39670305

Profitability Ratios
Return on Assets= NI/ TA 9.40% 9.42%
Equity Multiplier TA/ TE 10.20 10.85
TE/ TA 9.80% 9.22%
ROE=ROA X EM 95.90% 102.16%

NI/ OR 16.27% 6.89%

OR/ TA 9% 9%
TA/ TE 10.20 10.85

(II - IE)/ TA 3.12% 3.01%

(OI-OE)/ TA -0.12% -0.05%
Provisions/TA 0.01 0.02
ROA 1.53% 0.65%

(II- IE)/E A 3.35% 3.28%

EA/ TA 93.30% 91.76%
(II - IE)/ TA 3.12% 3.01%

NIM
II/ EA 8.12% 8.05%
IE/ Intt Bearing Liab 5.16% 5.08%
Intt Bearing Liabilities/ EA 92.62% 93.99%
Spread 2.97% 2.97%

Efficiency ratio= Non intt exp/ (Net Interest Income+Non intt income) 20.66% 22.09%

Risk Ratios
Liquidity Risk= Short term securities/ Deposits 0 0
Interest Rate Risk = Interest Sensitive Assets/ Interest Sensitive Liabilities
Credit Risk = Provisioning / Assets 1.47% 2.31%
Capital Risk = Capital / Assets 0.09% 0.08%
Leverage ratio= Total equity/Total assets 9.80% 9.22%
Total capital ratio= (Total equity + Long-term debt + Reserve for loan
losses)/Total assets 31% 29%
Provision for loan loss ratio= PLL/ TL (provision for loan losses/total
loans and leases) 1.10% 2.93%
Loan Ratio = Net loans/ Total assets 0.63 0.62
Loss Ratio = Net charge-offs on loans (gross charge-offs minus
recoveries)/ Total loans and leases
Reserve Ratio = Reserve for loan losses (reserve for loan losses last year
minus gross charge-offs plus PLL and recoveries)/Total loans and leases 0.01 0.03
Nonperforming ratio= Nonperforming assets (nonaccrual loans and
restructured loans)/Total loans and leases 0.02 0.06
Operating efficiency (cost control)= Wages and salaries/Total expenses 0.09 0.09
Volatile liability dependency ratio= (Total volatile liabilities - Temporary
investments)/Net loans and leases

Other Financial Ratios

Tax rate = Total taxes paid/Net income before taxes 0.34 -6.11
Gap ratio = (Interest rate-sensitive assets – Interest rate-sensitive
liabilities)/ Total assets
Analysis

YSIS
Mar-18 Mar-19 Mar-20

Rs in Crore Rs in Crore Rs in Crore

7037033671 8140459676 9278718058

354810648 350990403 849592711

84297483 329052679 128405033

1530367120 1740558546 1552816344

4498436451 5066561244 5829588354
40488204 41298823 43943385
528633765 611997981 874372231
6,467,911,702 7,487,162,872 8,360,402,442

1482021884 1541290515 1735926032

3074555758 3966168836 4685646054
1557670924 1612498292 1551801659

6,114,248,566 7,119,957,643 7,973,373,745

280015886 342475845 441940023
5828207 5143290 5643356
636941012 672882898 857760934
642,769,219 678,026,188 863,404,290
7037033671 8140459676 9278718058

466140592 560436523 637156804

276036927 338834746 379959407

54,144,397 59,898,715 58,199,622

580,126,518 651,853,154 781,789,193
118626154 141887538 163419937
584766746 702324061 800576741
147883644 167201872 180657585
156205947 145816536 221172201

342486400 297894400 302338200

166305686 102721131 128352954

5576753 75835511 52544043
936525 25364604 33756495
4640228 50470907 18787548

Analysis and comments

8.31% 8.63% 8.63% Ability of bank of to generate income on its assets is decreasing.
10.95 12.01 10.75 There is slight change in the amount of assets funded by the equity shareholders
 9.13% 8.33% 9.31% It shows that the equity held by the compnay as compared to assets. debt component has slightly in
90.98% 103.58% 92.72% The company is decreasing its profit generation which is unsatisfactory

0.79% 7.19% 2.35% There is a countinuos fall in the ratio which indicates that that the net income of the company is de
8% 9% 9% Axis bank is effectively maintaining revenues it generates using assets. It maintains a good ratio w
10.95 12.01 10.75 It indicates ratio of total assets and equity held. The co. must try to maintain high ratio

2.70% 2.72% 2.77% Decresing ratio is the indicator that the capatity to earn income through interest is decreasing
-0.42% -0.31% 1.76% It shows that expenses are more than incomes in relation to total assets. At the end the ratio is impr
0.02 0.02 0.02 Lower ratio is considered positive as bank need not to keep aside more money as provisions
0.07% 0.62% 2.15% The company is working to increase its effectiveness to make good return on its assets

2.94% 2.96% 3.08% Increasing trend in the ratio is a good indicator which reflects that the interest income left over inte
91.91% 91.97% 90.10% the higher the ratio , more effectively company is using assets in the company. Banks ratio is fallin
2.70% 2.72% 2.77% Decreasing ratio is the indicator that the capatity to earn income through interest is decreasing

7.21% 7.49% 7.62% It indicates the rate of interest paid from assets. Bank rate is decreasing hence a positive indicator
4.51% 4.76% 4.77% Decreasing ratio indicates interest paid on laibilities held by the company is decreasing
94.53% 95.10% 95.37% Higher ratio maintained by the company is preferred and indicates effctive use of assets
2.69% 2.73% 2.86% Higher the spread higher the profits for the bank

25.29% 23.81% 22.57% The efficiency to manage expenses other than interest payments is increasing. Althiugh the ratio in

0 0 0

2.22% 1.79% 2.38% The incresing provisons indicated the increase in the amout of bas assets in the company
0.08% 0.06% 0.06% Decresing ratio indicates the decrease in capital as compared to assets which is a good indicator
9.13% 8.33% 9.31% The declining rate is not a good indicator as , higher ratio is consider safe

34% 29% 27% Decreasing ratio indicated that company is reducing it leverage thus reducing risk of insolvency

3.70% 2.03% 2.20% Banks ability to withstand future losses is decreasing with falling trend in ratio
0.64 0.62 0.63 It indicates that company thas more assets than debt and is considered good

0.04 0.02 0.02 The increasing trend in the ratio shows a negative sign indicating lower effeciency to collect repay

0.08 0.06 0.05 Bank seems effective in collecting repayments for its loan and is consider healthy
0.09 0.09 0.07 Decreasing ratio is considered as a good sign as operating expenses are decreasing

0.17 0.33 0.64 Increasing ratio shows that the amount of tax paid by the company is increasing
quity shareholders
assets. debt component has slightly increased but thereafter it has decresed in 2020 as in previous years

the net income of the company is decresing as compared to opearting revenues

ing assets. It maintains a good ratio which is higher than 2.5
try to maintain high ratio

e through interest is decreasing

tal assets. At the end the ratio is improving
side more money as provisions
good return on its assets

that the interest income left over interestexpenditure is increasinga s compared to earing assets
in the company. Banks ratio is falling which is not good
me through interest is decreasing

ecreasing hence a positive indicator

he company is decreasing
cates effctive use of assets

nts is increasing. Althiugh the ratio increased in between but again it is decresing hence good for the company

f bas assets in the company

to assets which is a good indicator

ge thus reducing risk of insolvency

ing trend in ratio

ing lower effeciency to collect repayments of loan

d is consider healthy
penses are decreasing

pany is increasing