“RATIO ANALYSIS OF AXIS BANK OF FIVE YEARS”

A Project Submitted to

University of Mumbai for partial completion of the degree

of

Bachelor in Commerce (Accounting & Finance)

Under the Faculty of Commerce

By

POONAM NANDKISHOR KEVAT

Under the Guidance of

Girish Chandani
Vivekanand Education Society College of Arts, Science & Commerce
Sindhi Society, Chembur Mumbai –71

April 2019
 “RATIO ANALYSIS OF AXIS BANK OF FIVE YEARS”

A Project Submitted to

University of Mumbai for partial completion of the degree

of

Bachelor in Commerce (Accounting & Finance)

Under the Faculty of Commerce

POONAM NANDKISHOR KEVAT

By

Under the Guidance of

Girish Chandani
Vivekanand Education Society College of Arts, Science & Commerce
Sindhi Society, Chembur Mumbai –71

April 2019
 CERTIFICATE

This is to certify that POONAM NANDKISHOR KEVAT has worked and duly
completed her Project Work for the degree of Bachelor in Commerce (Accounting &
Finance – Sem VI) during the academic year 2018-19 under the Faculty of Commerce
in the subject of Financial Management and her project is entitled, “Ratio analysis of
axis bank of five years” under the guidance of Girish Chandani.

This is to further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree or
Diploma of any University.

It is her own work and facts reported by her personal findings and investigations .

Course Coordinator Principal

Project Guide/Internal Examiner External Examiner

 DECLARATION

I the undersigned POONAM NANDKISHOR KEVAT here by, declare that the
work embodied in this project work titled “Ratio analysis of axis bank of five
years” forms my own contribution to the research work carried out under the
guidance of Girish Chandani. is a result of my own research work and has not been
previously submitted to any other University for any other Degree/ Diploma to this or
any other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

(Poonam Nandkishor Kevat)

Roll No. 123

Certified by

(Girish Chandani.)
 ACKNOWLEDGMENT

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to
do this project.

I would like to thank my Principal, Dr.(mrs.) Anita Kanwar for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator CA.Shanthilakshmi M. for her

moral support and guidance.

I would also like to express my sincere gratitude towards my project guide Girish
Chandani whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.
 INDEX

CHAPTER
TITLE PAGE NO.
NO.

1 1-30
Introduction

2 31-38
Research Methodology

3 39-52
Review Of Literature

4 53-74
Data Analysis And Interpretation

5 75-77
Findings, Suggestion And Conclusion

6 Appendix 78-80

7 Bibliography 81
 LIST OF TABLE

Table No. List of table Page No.

4.1 Current Ratio 53

4.2 Cash position ratio 55

4.3 Net profit margin ratio 57

4.4 Return on equity 59

4.5 Return on assets 61

4.6 Current assets turnover ratio 63

4.7 Fixed assets turnover ratio 65

4.8 Total assets turnover ratio 67

4.9 Bank’s debt ratio 69

4.10 Banks debt equity ratio 71

4.11 Loans and advances ratio 73

4.12 Profit and loss account and balance sheet 78-80

 LIST OF GRAPH

Sr. No. Graph No. List of Graph Page No.

1 Graph No. 1 Current Ratio 54

2 Graph No. 2 Cash position ratio 56

3 Graph No. 3 Net profit margin ratio 58

4 Graph No. 4 Return on equity 60

5 Graph No. 5 Return on assets 62

6 Graph No. 6 Current assets turnover ratio 64

7 Graph No. 7 Fixed assets turnover ratio 66

8 Graph No. 8 Total assets turnover ratio 68

9 Graph No. 9 Bank’s debt ratio 70

10 Graph No. 10 Banks debt equity ratio 72

11 Graph No. 11 Loans and advances ratio 74

 CHAPTER:1

INTRODUCTION

1.1ABOUT THE PROJECT

Generally banking System is the backbone of every country’s economy. It is generally

agreed that a strong and healthy banking system is a prerequisite for sustainable
economic growth the banking system of India is featured by a large network of banks,
serving many kinds of financial needs of the people.

The Axis Bank popularly is one of the leading banks in India with number of
branches and variety of products. The investigation in this study is the financial
performance of the bank. The study will mainly explore the financial tools
to measure and interpret a performance.

The main objective of any company is the creation of wealth for its stakeholders
although this mostly applies market facts This means that progress needs to be
measured to show the bank return in total by highlighting the major strengths and
opportunities of the bank and on the other hand, weaknesses and threats facing the
bank. also, an analysis indicates the level of efficiency, liquidity, debt management
and adequate cash flow. No research is completed until it has formulated a specific
problem. The problem of the study is to analyse the financial status of Axis Bank

The banking sector is one of the most important instruments of the national
market, market liberalization, economic reforms have witnessed important changes in
banking industry leading to incredible competitiveness and technological
sophistication leading to a new era of in banking. Since then, every bank is
relentless in their endeavour to become financially strong and operationally
efficient development, occupies a unique place in a nation’s economy. Economic
development of the country is evident through the soundness of the banking
system. Deregulation in the financial and effective.

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Indian banks are the dominant financial intermediaries in India and have made good
progress during the global financial crisis; it is evident from its annual credit growth
and profitability. the growth is possible in two ways, organic or inorganic. Organic
growth is also referred as internal growth, occurs when the company grows
from its own business activity using funds from one year to expand the company
the following year. Such growth is a gradual process spread over a few years but
firms want to grow faster. Inorganic growth is referred as external growth and
considered as a faster way to grow which is most preferred Inorganic growth occurs
when the company grows by merger or acquisition of another business.

The main motive behind the Merger is to create synergy, that is one plus one is more
than two and this rationale beguile the companies for merger at tough times.
Merger and Acquisitions help the companies in getting the benefits of greater
market share and cost efficiency. For expanding the operations and cutting
costs, Banks are using Merger and Acquisitions as a strategy for achieving larger
size, increased market share, faster growth, and synergy for becoming more
competitive through economies of scale. Today a large section of people, who have
minimal financial literacy, are need to know the financial performance status of the
banks where their deposits are vested. They may be as an investor, manager,
employee, owner, lender, customer, government and public at large.

Financial performance is not available from the records and files in any organisation.
It has to be derived by the usage of financial statement analysis techniques. The
selection and usage of technique is subject to the option of the user. Some of the
important and commonly used techniques are: Ratio Analysis, Cross section analysis
Comparative statement analysis, Time series analysis, Common size analysis.
The usefulness of ratios depends on skilful interpretation and intelligence of the user.

The present study is devoted to analysis the financial ratios of Axis Bank by using
ratio analysis with a view to give meaningful interpretations for the users Financial
Ratios are used in the evaluation of the financial condition and profitability of a
company. The ratios are calculated from the financial information provided in the
balance sheet and income statements. While analysing the financial statements you
should keep in mind the principles/practices that accountants use in preparing
statements to examine at the financial condition and preference of a company.
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Ratio Analysis is one of the techniques of financial analysis where ratios are used to
evaluating the financial condition and performance of a firm. Analysis and
interpretation of various accounting ratios gives a skilled and experienced analyst a
better understanding of the financial condition and performance of the firm.

1.2 INTRODUCTION TO RATIO

Financial analysis is the process of identifying the financial strength. And weakness
of the firm by properly establishing relationship between the items of the balance
sheet and the profit and losses account. Ratio analysis is a powerful tool of financial
analysis useful for measuring the performance of an organization.

Ratio analysis is a process of comparison of one figure against another, which make a
ratio, and the appraisal of the ratio to make proper analysis about the strength and
weakness of the operations of an enterprise.

A ratio is defined as, “a fraction whose numerator is the ‘antecedent’ and

denominator the ‘consequences’. ‘It is simply an expression of one number in terms
of another.

Ratios: are the simplestmathematical (statistical) tools that reveal significant

relationships hidden in mass of data, and allow meaningful comparisons. Some
ratios are expressed as fractions or-decimals, and some as percentages. Major types of
business ratios include Efficiency, Liquidity, Profitability, and Solvency ratios.

A financial ratio or accounting ratio is a relative magnitude of two selected numerical

values taken from an enterprise's financial statements. Often used in accounting, there
are many standard ratios used to try to evaluate the overall financial condition of a
corporation or other organization. Financial ratios may be used by managers within a
firm, by current and potential shareholders (owners) of a firm, and by a
firm's creditors. Financial analysts use financial ratios to compare the strengths and
weaknesses in various companies. If shares in a company are traded in a financial
market, the market price of the shares is used in certain financial ratios.

3
Ratios can be expressed as a decimal value, such as 0.10, or given as an
equivalent percent value, such as 10%. Some ratios are usually quoted as percentages,
especially ratios that are usually or always less than 1, such as earnings yield, while
others are usually quoted as decimal numbers, especially ratios that are usually more
than 1, such as P/E ratio; these latter are also called multiples. Given any ratio, one
can take its reciprocal; if the ratio was above 1, the reciprocal will be below 1, and
conversely. The reciprocal expresses the same information, but may be more
understandable: for instance, the earnings yield can be compared with bond yields,
while the P/E ratio cannot be: for example, a P/E ratio of 20 corresponds to an
earnings yield of 5%.

1.3 DEFINITION AND MEANING OF RATIO’S

• Ratio analysis is the process of examining and comparing financial

information by calculating meaningful financial statement figure percentages
instead of comparing line items from each financial statement.

• A ratio analysis is a quantitative analysis of information contained in a

company’s financial statements. Ratio analysis is used to evaluate various
aspects of a company’s performance.
The relationship between two accounting variables, expressed
mathematically is known as an accounting ratio.

MODES OF EXPRESSION

• PURE RATIO
• PERCENTAGE
• NUMBER OF TIMES
• NUMBER OF DAYS/WEEKS/MONTHS

1. Pure ratio: In this case one number is divided by another number so as to express
the ratio in a pure ratio form.
2. Percentage: In order to express the ratio in percentage, one number is taken as the
numerator, another as the denominator and multiplied by 100.

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3. Times: Certain items of financial statement can be better expressed in the form of
a rate.
4. Days/weeks/months: Certain items of financial statement can be better expressed
in the form of days or weeks or months.

1.4 CLASSIFICATION OF RATIOS

Accounting Ratios are classified on the basis of the different parties interested in
making use other ratios. A very large number of accounting ratios are used for the
purpose of determining the financial position of a concern for different purposes.
Ratios may be broadly classified in to:

•Classification of Ratios on the basis of Balance Sheet.

•Classification of Ratios on the basis of Profit and Loss Account.

•Classification of Ratios on the basis of Mixed Statement (or) Balance Sheet and
Profit and Loss account

to meet the objective the study groups ratios and divides three main parts which are
Liquidity ratios, profitability ratios, and asset management ratios.

1.4.1 LIQUIDITY RATIO

The scope to which there is quick convertibility of assets in to money, for the purpose
of paying obligation of short-term nature can be termed as liquidity. Apropos to
obtaining an indication of a firm’s ability to meet its current liabilities, the utility of
the liquidity ratios is instrumental. As a flip side, however, it does not bring to the
light, the effectiveness of the optimal management of cash resources. It is also termed
as Short-Term Solvency Ratios. To measure the liquidity of a firm, the following
Liquidity ratios are commonly used:

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 1) CURRENT RATIO:

The relationship between current assets and current liabilities is established by

Current Ratios. It attempts to measure the ability of a firm to meet its current
obligations. Current assets and current liabilities comprise of two pivotal components
of this ratio. Assets that can be easily converted into cash, within the time frame of
less than a year, can be termed as current assets. While, conversely, current liabilities
encompass those liabilities which can be paid off with in a year.

The ideal current ratio is 2: 1. It is a stark indication of the financial soundness of a

business concern. When Current assets double the current liabilities, it is considered
to be satisfactory. Higher value of current ratio indicates more liquid of the firm’s
ability to pay its current obligation in time.

❖ FORMULA = CURRENT ASSETS/CURRENT LIABILITY

Along with knowing how to analyse and improve current ratio, it is important to know
the advantages and disadvantages of using current ratio

ADVANTAGES OF CURRENT RATIO:

• It measures the liquidity of the firm

• It represents the working capital position of a firm
• It represents the liquidity of a company
• It represents margin of safety
• It tells us the short-term solvency of a firm.

DISADVANTAGES OF CURRENT RATIO:

• Its accuracy can be deterred as, pertaining to different businesses, depending on a

variant of factors

• Over-valuation of stock also contributes to its tipping accuracy

• It measures the firm liquidity on the basis of quantity and not quality, which
comes across as a crude method.

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 • Using this ratio on a standalone basis may not be sufficient to analyse the liquidity
position of the company as it relies on the amount of current assets instead of the
quality of the asset.
• In companies where sales are seasonal; you may see a reduced current ratio in
some months and increased ratio in the other.

2) CASH POSITION RATIO

Cash ratio is the ratio of cash and cash equivalents of a bank to its current liabilities. It
is an extreme liquidity ratio since only cash and cash equivalents are compared with
the current liabilities. It measures the ability of a business to repay its current
liabilities by only using its cash and cash equivalents and nothing else.

The cash ratio is the ratio of a bank's total cash and cash equivalents (CCE) to
its current liabilities. The metric calculates a company's ability to repay its short-term
debt; this information is useful to creditors when deciding how much debt, if any, they
would be willing to extend to the asking party. The cash ratio is generally a more
conservative look at a company's ability to cover its liabilities than many
other liquidity ratios because other assets, including accounts receivable, are left out
of the equation.

❖ CASH POSITION RATIO = CASH/CURRENT LIABILITY

3)DEBTTO EQUITY RATIO

The debt to equity ratio is a financial, liquidity ratio that compares a company’s total
debt to total equity. The debt to equity ratio shows the percentage of company
financing that comes from creditors and investors. A higher debt to equity ratio
indicates that more creditor financing (bank loans) is used than investor financing
(shareholders).

❖ DEBT TO EQUITY RATIO=TOTAL LIABILIY/TOTAL EQUITY

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1.4.2 PROFITABILITY RATIO

Profitability ratios designate a bank's overall efficiency and performance. It measures

how to use assets and how to control its expenses to generate an acceptable rate of
return. It also used to examine how well the bank is operating or how well current
performance compares to past records of bank

These ratios are intended to reflect the overall efficiency of the organisation, its
ability to earn a reasonable return on capital employed or on shares issued and the
effectiveness of its investment policies.

Profitability ratios are a class of financial metrics that are used to assess a business's
ability to generate earnings relative to its associated expenses. For most of these
ratios, having a higher value relative to a competitor's ratio or relative to the same
ratio from a previous period indicates that the company is doing well.

1) NET PROFIT MARGINS RATIO

Different profit margins are used to measure a company's profitability at various cost
levels, including gross margin, operating margin, pre-tax margin and net profit
margin. The margins shrink as layers of additional costs are taken into consideration,
such as cost of goods sold (COGS), operating and non-operating expenses, and taxes
paid. Gross margin measures how much a company can mark up sales above COGS.
Operating margin is the percentage of sales left after covering additional operating
expense. The pre-tax margin shows a company's profitability after further accounting
for non-operating expense. Net profit margin concerns a company's ability to generate
earnings after taxes.

❖ NET PROFIT MARGIN=NET PROFIT / NET REVENUE

Net margin measures the overall profitability of a company. It considers all the
operating and financing expenses by the company in its daily operations. In other
words, it tells us how much of the revenue generated by the company is left for

8
various corporate activities. For example, Company X has 40% of its revenue left to
be utilized either to pay back the shareholders or to reinvest in the business.

2) RETURN ON EQUITY

ROE is a ratio that concerns a BANK's equity holders the most, since it measures
their ability of earning return on their equity investments. ROE may increase
dramatically without any equity addition when it can simply benefit from a higher
return helped by a larger asset base. As a company increases its asset size and
generates better return with higher margins, equity holders can retain much of the
return growth when additional assets are the result of debt use.

❖ RETURN ON EQUITY = NET PROFIT / EQUITY.

ADVANTAGES OF EQUITY RATIO

Equity ownership provides the highest rate of return in the long run; more than bonds
and cash. Common stocks have provided over a 6% real rate of return in the long run,
providing one of the best means to stay ahead of inflation.

Stock ownership is one of the foundations of capitalism and a free enterprise system.
Common stock provides benefits to the issuer, shareholder, and society in general.

The issuer raises capital for producing goods or services. The shareholder receives the
fractional benefits of an enterprise that is much larger than they would normally be
able to participate in. Society enjoys the benefits of the goods and services of the
issuing company as well as the jobs produced by the company. And let’s not forget
the taxes paid by both the company and shareholders.

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 Risk of EQUITY

Owners of common stock have no guarantees, but are accepting the risk in exchange
for potential greater gains than other safer investments. However, the shareholder’s
liability is limited to the price paid for the common stock.

Common stock can be very volatile and is generally considered a high-risk investment
class. In the case of liquidation of the business, owners of common stock are last in
line behind creditors, bondholders, and preferred stockholders.

3) RETURN ON ASSETS

Profitability is assessed relative to costs and expenses, and it is analyzed in

comparison to assets to see how effective a company is in deploying assets to generate
sales and eventually profits. The term return in the ROA ratio customarily refers to
net profit or net income, the amount of earnings from sales after all costs, expenses
and taxes. The more assets a company has amassed, the more sales and potentially
more profits the company may generate. As economies of scale help lower costs and
improve margins, return may grow at a faster rate than assets, ultimately increasing
return on assets.

❖ RETURN ON ASSETS = NET INCOME / TOTAL ASSETS

ADVANTAGES

1. As mention above, Return on Assets is used to measure efficiency of assets using to

generate the Net Income, and this is the Financial Indicators which normally use in
the manufacturing industry.
2. This Return on Assets is normally benchmark with the industry average, competitor,
and previous year. For better analysis, the trend of this ratio for at least three years
would be more benefit.

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3. There are advantages and disadvantages of using ROA as performance indicator in
order to assess company’s performance as well as to reward management.

DISADVANTAGES

1. ROA using accounting information for calculation and it is commonly affected by

management judgement.
2. Accounting policies is one among those factors. ROA use percentage but it does not
show the real value added to the shareholders or the company.
3. The serious disadvantages of ROA are it motivates management to use the old assets
and discourage them not to invest in the new assets.

1.4.3 ASSETS MANAGEMENT RATIO

Asset management ratios are most notable ratios of financial ratios analysis. It
measures how effectively any organization uses and controls its assets. It is analysis
how a company quickly converted to cash or sale on their resources. It is also called
Turnover ratios because it indicates the asset converted or turnover in to sales

Asset Management Ratios attempt to measure the firm's success in managing its
assets to generate sales. For example, these ratios can provide insight into the success
of the firm's credit policy and inventory management. These ratios are also known as
Activity or Turnover Ratios.

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1) CURRENT ASSETS TURNOVER RATIO

Current Asset Turnover It can be calculated by dividing the firm's net sales by its
average current assets, and it shows the number of turns made by the current assets of
the enterprise. The values may vary between businesses and industries, and the
normative value is absent.

Current Asset Turnover - an activity ratio measuring firm’s ability of generating sales
through its current assets (cash, inventory, accounts receivable, etc.). It can be
calculated by dividing the firm's net sales by its average current assets, and it shows
the number of turns made by the current assets of the enterprise.

❖ CURRENT ASSETS TURNOVER RATIO = SALES/CURRENT ASSETS

Resolving the problems with the current asset turnover exceeding the normative
range:

In case the current asset turnover value is low there are following ways to increase it:

• decreasing the inventory stock to the minimum level, which would allow the
continuous operational process;
• sales promotion and decreasing the finished goods stock;
• Activation of the accounts receivable collection process, etc.

2) FIXED ASSETS TURNOVER RATIO

Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value
of fixed assets (on the balance sheet). It indicates how well the business is using its
fixed assets to generate sales.

The fixed asset turnover ratio is an efficiency ratio that measures a company’s return
on their investment in property, plant, and equipment by comparing net sales with
fixed assets. In other words, it calculates how efficiently a company is a producing
sale with its machines and equipment.

❖ FIXED ASSETS TRUNOVER RATIO= SALES/FIXED ASSETS

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3) TOTAL ASSETS TURNOVER RATIO

The total asset turnover ratio compares the sales of a company to its asset base. The
ratio measures the ability of an organization to efficiently produce sales, and is
typically used by third parties to evaluate the operations of a business. Ideally, a
company with a high total asset turnover ratio can operate with fewer assets than a
less efficient competitor, and so requires less debt and equity to operate. The result
should be a comparatively greater return to its shareholders.

❖ TOTAL ASSETS TURNOVER RATIO = SALES / TOTAL ASSETS

4) DEBT RATIO

Debt ratio is a solvency ratio that measures a firm’s total liabilities as a percentage of
its total assets. In a sense, the debt ratio shows a company’s ability to pay off its
liabilities with its assets. In other words, this shows how many assets the company
must sell in order to pay off all of its liabilities.

This ratio measures the financial leverage of a company. Companies with higher
levels of liabilities compared with assets are considered highly leveraged and more
risky for lenders.

❖ FORMULA = TOTAL LIABILITIES/TOTAL ASSETS

5) LOANS AND ADVANCES RATIO

Money provided by the bank to entities for fulfilling their short term requirements is
known as Advances. The loan is a kind of debt while Advances are credit facility
granted to customers by banks. Loans are provided for a long duration which is just
opposite in the case of Advances.

❖ LOANS AND ADVANCES=

(LOANS AND ADVANCES / TOTAL ASSETS)*100

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 1.5 PARTIES INTERESTED IN RATIO ANALYSIS RESULT

Analysis of financial statement has become very significant due to widespread

interest of various parties in the financial results of a business unit. The various
person interested in the analysis of financial statement are: -

a) Short – term creditors

They are interested in knowing whether the amounts owing to them will be paid as
and when fall due for payment or not.

b) Long – term creditors

They are interested in knowing whether the principle amount and interest thereon will
be paid on time or not.

c) Shareholders
They are interested in profitability, return and capital appreciation.

d) Management
The management is interested in the financial position and performance of the
enterprise as a whole of its various division.

e) Trade union
They are interested in financial statement for negotiating the wages or salaries or
bonus agreement with management.

f) Taxation authorities
The authorities are interested in financial statement for determining the tax liability.

g) Researcher
They are interested in the financial statement in undertaking research in business
affairs and practices.

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h) Employee
They are interested in enables them to justify their demands for bonus and increase in
remuneration.
You have seen that different parties are interested in the result reported in the
financial statement. These results are reported by analysing financial statement
thought the use of the ratio analysis.

IMPORTANCE OF RATIO

The ratio analysis is one of the most powerful tools of financial analysis. It is used as
a device to analyse and interpret the financial health of enterprise. A ratio is known as
a symptom like blood pressure, the pulse rate of the temperature of an individual. It is
with help of ratios that the financial statements can be analysed more clearly and
decision made from such analysis.

The use of ratios is not analysis for knowing financial position of a firm like supplier,
banks, investors, shareholders, financial institutions etc. The ratio analysis provides
guides and clues especially in spotting trends towards better or poor performance. In
the words of J. Batty “ratio can also assist management in its basic functions of
foresting, planning, co-ordination control and communication.” The important /
objectives of ratios analysis is discussed below:

With the help of ratio analysis meaningful information can be communicated to the
user of accounting information and as a result the analyst can draw right decision.

1. SIMPLIFICATION

Accounting figures in many cases fail to provide information in a desired way. Ratios
simplify, summarize and systematize accounting figures which can easily be
understood by those do not know the language of accounting.

2. MEASURES LIQUIDITY POSITION

Ratio analysis helps in measuring the liquidity position of the firm. Liquidity position
of firm is said to be satisfactory if it is able to meet its current obligation as and when
they mature. Various liquidity ratios are used for the purpose of credit analysis by
banks and short-term lenders. Long term benefits Ratio analysis is equally important
in evaluating the long-term solvency of the firm. It is measured by capital structure of
leverage ratios.

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3. MEASURING CORPORATE SICKNESS

Undoubtedly, ratio analysis helps us to measure the corporate sickness well .In
advance so that the management, shareholders and other interested partiesmay.Take
proper step to avoid such a situation.

4. MEASURES OPERATIONAL EFFICIENCY

Ratios are useful tools in the hands of management to evaluate the firm’s performance
over a period of time by comparing the present ratios with the past ratios. Various
activity or turnover ratio measure the operational efficiency of the firm. These ratios
are used, in general, by bankers, investors and other supplier of credit.

5. MEASURES PROFITABILITY

The management as well as owners of firm is primarily concerned with the overall
profitability of the firm. Profit and loss amount reveal the profit earned or loss
incurred during a period but fails to convey the capacity of the firm to earn in terms of
per rupee invested or per rupee of sales. By calculating various profitability ratios an
analyst can measure earning capacity of the firm.

6. FACILITIES INTER FIRM AND INTRA FIRM COMPOSITIONS

Ratio analysis is the basis for comparing the efficiency of various firms in the industry
and various division of a business firm.

7. TREND ANALYSIS

Ratio analysis enables a firm to take the time dimensions into account. Trend analysis
of ratios revels whether financial position of the firm is improving or deteriorating
over years. With the help of such analysis, one can ascertain whether the trend is
favourable or adverse. For example, any particular ratio may be less than general ratio
but the trend may be increasing. On the contrary, present level may be satisfactory but
trend may be declining.

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8. MANAGERIAL USES

Ratio analysis is an invaluable aid to management is discharging its basis function

such as planning, communication, control co-ordination and decision making.

9. FORMULATING GOVERNMENT POLICES

Since ratios are the tools to measure industrial efficiency and performance the
government takes various financial policies on the basis of the result of various
related ratio analysis.

10. TIME DIMENSION BY TREND ANALYSIS

It helps to take time dimension into account by trend analysis i.e. whether the firm is
improving or deteriorating over a number of years that can easily be studied by the
trend analysis. So, comparison can be made without difficulty by the analyst and to
see whether the said ratio is high or low in comparison with the standard or normal
ratio.

11. MEASUREMENT OF DEGREE OF EFFICIENCY

It throws light on the degree of efficiency of the management and utilization of assets
and that is why it is called surveyor of efficiency.

12. ANALYSIS AND SCRUTINY OF THE PAST RESULT

It helps to analyse the probable causal relation among different items after analysing
and scrutinizing the past result.

13. PREPARATION OF BUDGETS

The ratio that are derived after analysing and scrutinizing the past result helps the
management to prepare budgets and estimates, to formulate policy, and to prepare the
future plan of action and, thus among different items for preparing budgets.

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 1.7 COMPANYPROFILE

Axis Bank is the third largest of the private-sector banks in India offering a
comprehensive suite of financial products. The bank has its head office in Mumbai,
Maharashtra. It has 3,703 branches, 13,814 ATMs, and nine international offices. The
bank employs over 55,000 people and had a market capitalization of ₹1.31 trillion
(US$18 billion) (as on March 31, 2018).It sells financial services to large and mid-
size corporate, SME, and retail businesses.

As of 30 Jun. 2016, 30.81% shares are owned by promoters and promoter group
(United India Insurance Company Limited, Oriental Insurance Company
Limited, National Insurance Company Limited, New India Assurance Company
Ltd, GIC, LIC and UTI). The remaining 69.19% shares are owned by mutual funds,
FIIs, banks, insurance companies, corporate bodies, and individual investors among
others.

SERVICES

Indian Business

As of 12 Aug 2016, the bank had a network of 3,120 branches and extension counters
and 12,922 ATMs. Axis Bank has the largest ATM network among private banks in
India and it operates an ATM at one of the world’s highest sites at Thegu, Sikkim at a
height of 4,023 meters (13,200 ft) above sea level.

International business

The Bank has nine international offices with branches at Singapore, Hong Kong,
Dubai (at the DIFC), Shanghai, Colombo and representative offices at Dhaka, Dubai
and Abu Dhabi, which focus on corporate lending, trade finance, syndication,
investment banking and liability businesses. In addition to the above, the Bank has a
presence in UK with its wholly owned subsidiary Axis Bank UK Limited.

18
RETAIL BANKING

In the retail category, the bank offers services such as lending to individuals and small
businesses subject to the orientation, product and granularity criterion, along with
liability products, card services, Internet banking, automated teller machines (ATM)
services, depository, financial advisory services, and Non-resident Indian (NRI)
services. Axis bank is a participant in RBI's NEFT enabled participating banks list.

CORPORATE BANKING

Credit: The Bank offers various loan and fee-based products and services to large and
mid-corporate customers and small and medium Enterprise (SME) businesses. These
products and services include cash credit facilities, demand and short-term loans,
project finance, export credit, factoring, channel financing, structured products,
discounting of bills, documentary credits, guarantees, foreign exchange and derivative
products. Liability products including current accounts, certificates and deposits and
time deposits are also offered to large and mid-corporate segments.

Transaction banking: Formed in April 2015, TX provides integrated products and

services to customers in areas of current accounts, cash management services, capital
market services, trade, foreign exchange and derivatives, cross-border trade and
correspondent banking services and tax collections on behalf of the Government and
various State Governments in India.

Treasury: The treasury manages the funding position of the Bank and also manages
and maintains its regulatory reserve requirements. It invests in sovereign and
corporate debt instruments and engages in proprietary trading in equity and fixed
income securities, foreign exchange, currency futures and options. It also invests in
commercial papers, mutual funds and floating rate instruments as part of the
management of short-term surplus liquidity. In addition, it also offers a wide range of
treasury products and services to corporate customers.

Syndication: The bank also provides services of placement and syndication in the
form of local currency bonds, rupee and foreign term loans and external commercial
borrowings.

19
Investment banking and trustee services: The bank provides investment banking
and trusteeship services through its owned subsidiaries. Axis Capital Limited provides
investment banking services relating to equity capital markets, institutional stock
broking besides M&A advisory. Axis Trustee Services Limited is engaged in
trusteeship activities, acting as debenture trustee and as trustee to various
securitizations trusts.

International banking

The bank continues to offer corporate banking, trade finance, treasury and risk
management through the branches at Singapore, Hong Kong, DIFC, Shanghai and
Colombo, and also retail liability products from its branches at Hong Kong and
Colombo. The representative office at Dhaka was inaugurated during the current
financial year.

ETHICS CONTROVERSIES

2016 DEMONETISATION RELATED MONEY LAUNDERING

Following the 2016 Indian Banknote Demonetization, a number of Axis Bank

employees were arrested for facilitating money laundering activities. Some media
outlets highlighted the disproportionate number of cases involving the bank, and
claimed that the bank's aggressive performance targets and internal culture fostered
such activities and that the blame does not lie solely in the hands of arrested
employees.

OPERATION RED SPIDER

An Indian online magazine conducted a sting operation which was publicized along
with 2013 videos evidence showing a wide range of violations and money-laundering
schemes by top officials at a number of Indian banks, including Axis Bank.
Consequently, penalty of Rs 5 crore on Axis Bank, Rs 4.5 crore on HDFC Bank and
Rs 1 crore on ICICI Bank was imposed by Reserve Bank of India.

20
INITIATIVES

Axis Pay

The newly introduced UPI will facilitate banking transactions using only a single
'Virtual Payment Address' (VPA). While transferring money to an account, the sender
will not be forced to feed the slew of details like the account number and bank's IFSC
Code, but can transact using only the VPA.

Ping Pay

The bank launched Ping Pay in 2015, which is a multi-social payment solution that
allows customers to transfer funds using their smart phones to both Axis Bank
accounts and other banks' account holders.

Augmented reality

Axis Bank augmented reality feature within its mobile app which lists all the dining
destinations, property lists, shopping centers, bank ATMs, branches and many other
things not only as a location on GPS but also in real life pictures along with distance
and directions.

Axis Thought Factory

The innovation hub located in Bengaluru, has an in-house innovation team and an
accelerator programme. With this launch, Axis Bank becomes the first Indian bank to
introduce a dedicated innovation lab in the country.

Insta Personal Loan

Axis Bank provides a ‘24X7 Instant Personal Loan’ on smart phones and ATM
kiosks. Customers can get instant loan approval and disbursement, which gets
credited directly into their account.

21
Locker booking

The bank has launched an online locker booking facility through the mobile app to
allow customers to check availability from their homes and book instantly.

Microfinance Institutions (MFI) Lending

A new tablet-based loan origination system developed to digitize the entire lending
process of MFI business. This will replace the existing paper-based loan sanctioning
process.

Multicurrency Forex cards

Axis Bank offer contactless multicurrency Forex cards to Indian travellers. The same
technology has also been extended to the Bank’s Debit and Credit card platforms. The
bank has set up an in-house payment gateway that allows for secure e-commerce
transaction processing capability and reduces the cost incurred on using external
gateways.

Asha home loans

Asha home loans targets first time home buyers in the lower income segment. The
product offers loans from ₹100,000 (US$1,400)–₹1.5 million (US$21,000) in small
towns (population less than 1 million) and up to ₹2.8 million (US$39,000) in larger
towns (population over 1 million), to customers with family incomes
of ₹8,000 (US$110)–₹10,000 (US$140) per month and above.

ISIC Forex card

ISIC Forex card for students is the first photo travel currency card available in USD,
EUR, GBP and AUD currencies. It can be used across 34 million merchant locations
and at over 2 million MasterCard ATMs globally.

eKYC

eKYC is an online, paperless Aadhaar card-based process for fulfilling KYC

requirements to start investing in mutual funds without submission of any documents.

22
SEBI has recently in 2017, allowed Aadhaar-based KYC to be used for MF
investments, for the convenience of investors. Axis Bank partnered with Visa to
launch 'eKYC' (electronic know your customer) facility, first organisation in India to
introduce biometrics-based KYC.

SUBSIDIARIES

He Bank Has Ten Wholly Owned Subsidiaries:

• Axis Private Equity Ltd.

• Axis Trustee Services Ltd.
• Axis Asset Management Company Ltd.
• Axis Mutual Fund Trustee Ltd.
• Axis Bank Uk Ltd.
• Free Charge
• Axis Securities Ltd.
• Axis Direct
• Axis Finance Ltd.
• Axis Securities Europe Ltd.
• A Trend Limited
• Axis Forex

BANK PRODUCTS AND SERVICES

✓ Axis Bank Business Loan.

✓ Axis Bank Car Loan.
✓ Axis Bank Credit Card.
✓ Axis Bank Debit Card.
✓ AXIS Bank Education Loan.
✓ Axis Bank FD Rates.
✓ Axis Bank Gold Loan.
✓ Axis Bank Home Loan.

23
AWARDS AND RECOGNITIONS

2010

• Best Debt House in India - Euro-money

• Best Domestic Debt House in India - Asia-money
• Overall Winner & Consistent Performer -(Large Banks Category) - Business
Today Best Bank Awards 2010

2011
• Bank of the Year – India –The Banker Awards 2011
• 2012
• Bank of the Year - Money Today FPCIL Awards 2012-13
• Best Private Sector Bank - CNBC-TV18 India’s Best Bank and Financial
Institution Awards 2012
• Consistent Performer - India’s Best Banks – 2012 Survey by Business Today
& KPMG
• Gold Shield for Excellence in Financial Reporting in the Private Banks
category - 2011-12 - ICAI (Institute of Chartered Accountants of India)

2013

• Axis Bank ranked No 1 company to work for in the BFSI sector - 'The Best
Companies to Work for' survey by Business Today.
• Ranked No 1 in the IT Biz Award - large enterprises category by Express IT
Awards
• Innovation for 2013 for Ladies First card under ‘the Most Innovative Broad-
Based Product Offering’ category- IBA Innovations Award.

2014

• Axis Bank Foundation conferred Outstanding Corporate Foundation at Forbes

India, Philanthropy Awards, 2014

24
• Best Domestic Bank in India- Asia-money Best Banks 2014
• Best Bank Award among Large Banks for IT For Business Innovation-
IDRBT Banking Technology Excellence Awards 2014
• Axis Bank featured for the fourth time in Asia's Fab50 companies for 2014
by Forbes Asia
• Best Bank for Rural Reach in the Private Sector and Best Retail Growth
Performance in the Private Sector category- Dun & Bradstreet-Polaris
Financial Technology Banking Awards 2014

2015

• Axis Bank has been adjudged winner in the Best Bank Category, Outlook
Money Awards 2015
• Axis Bank awarded for the Best Security among Private Sector Banks in India
by Data Security Council of India (DSCI).
• Axis Bank conferred the Certificate of Recognition for excellence in
Corporate Governance by the Institute of Company Secretaries of
India (ICSI), for the year 2015.
• Best Domestic Bank in India- Asia money Best Banks 2015.
• Axis Bank's Mobile App tops Forrest er Research's review of Smartphone
Mobile Banking Apps in India.

• Axis Bank was selected as the Best Private Sector Bank under the category
Rural Reach at the Dun & Bradstreet Banking Awards 2015.
• Axis Bank has been conferred with IDRBT Best Bank Award for Digital
Banking, Analytic s& Big Data among large banks.
• Axis Bank has been featured in Limca Book of Records 2015 for creating a
National Record for its campaign - 'Plant a Sapling'.
• Axis bank has been awarded the title of Superbrand 2014-2015, by
Superbrands
• No. 1 Promising Banking Brand of 2015, Economic Times Awards 2015.
• Winner in the 'Best Payment Initiatives' category amongst Private Sector
Banks, IBA Banking Technology Awards 2015.

25
LISTING AND SHAREHOLDING

Axis Bank's equity shares are listed on the Bombay Stock Exchange and National
Stock Exchange of India. The company's global depository receipts (GDRs) are listed
on the London Stock Exchange. The Bonds issued by the Bank under
the MTN programme are listed on the Singapore Stock Exchange

Axis Bank Foundation

Is the CSR arm of Axis Bank. It was formed in 2006 with the aim of giving focus and
structure to Bank’s corporate social responsibility and corporate citizenship agenda.

The Foundation’s mandate is to enhance economic inclusion for those living on the
fringes of poverty. These include communities heavily dependent on natural resources
and hand skills for their livelihoods and youth who are unable to find employment,
especially the disabled. Foundation works in partnership with NGOs to design and
deliver its programs.

1) Build and strengthen the capacity of the communities to work towards their
development,
2) Linkages with Financial Institutions and markets. The programs outcomes are also
aligned 3) To achieve some of the Sustainable Development Goals (SGDs) set by
United Nations in 2015 – Goal 1 - No Poverty, Goal 2 - Zero Hunger, Goal – 4
Quality Education, Goal 5 -Gender Equality, Goal 10 -Reduced Inequalities and Goal
13 - Climate Action.

The Foundation is a strong advocate of people’s institution as a means for long term
sustainability and supported programs are strategically and financially designed
accordance.

ABF is governed by a Board comprising of members who are from the Development
sector and Business leaders. The Foundation is managed by a team comprising of
people with development and corporate sector expertise.

26
HISTORY OF AXIS BANK

UTI Bank opened its registered office in Ahmedabad and corporate office
in Mumbai in December 1993. The first branch was inaugurated on 2 April 1994
in Ahmedabad by Dr. Manmohan Singh, the Finance Minister of India. UTI Bank
began its operations in 1993, after the Government of India allowed new private
banks to be established. The Bank was promoted in 1993 jointly by the Administrator
of the Unit Trust of India (UTI-I),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.

In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but
the Reserve Bank of India (RBI) withheld approval and nothing came of this. In 2004
the RBI put Global Trust into moratorium and supervised its merger into Oriental
Bank of Commerce.

In 2003 UTI Bank became the first Indian bank to launch the travel currency card.

In 2005, UTI bank got listed on London Stock Exchange.

UTI Bank opened its first overseas branch in 2006 Singapore. That same year it
opened a representative office in Shanghai, China. UTI Bank opened a branch in
the Dubai International Financial Centre in 2007. That same year it began branch
operations in Hong Kong. In 2008 it opened a representative office in Dubai.

With effect from July 30, 2007, UTI Bank changed its name to Axis Bank.

Axis Bank opened a branch in Colombo in October 2011, as a Licensed Commercial

Bank supervised by the Central Bank of Sri Lanka. Also, in 2011, Axis Bank opened
a representative office in Abu Dhabi.In 2011, Axis bank inaugurated Axis House, its
new corporate office in Worli, Mumbai.

In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. Axis
Bank UK has a branch in London.

27
DeepikaPadukone, a Mumbai Film Industry (a.k.a. Bollywood) actress is the brand
ambassador of Axis Bank.

In 2015, Axis Bank opens its representative office in Dhaka.

The bank has over 50,000 employees (as of 31 March 2016). The bank incurred ₹26.7
billion (US$370 million) on employee benefits during the FY 2012–13.The average
age of an Axis Bank employee is 29 years. The attrition rate in Axis Bank is
approximately 9% per year.

VISION

To be the profred financial solution provider excelling in customer delivery through

insight empowered employees and smart use of technology. Over the last 25 years,
the foundation of Axis Bank has been built on its core values - Customer Centricity,
Ethics, Transparency, Teamwork and Ownership, and by doing the right thing for its
stakeholders. At the heart of our approach is the belief that our long-term success
depends on the progress of the communities we serve and protection of the
environment we live in.

As one of India’s largest financial institutions, we remain cognizant of our

responsibility and are committed to helping individuals, communities, and businesses
achieve real progress in their lives.

CORE VALUES

• Customer Centricity
• Ethics
• Transparency
• Teamwork
• Ownership

28
SWOT ANALYSIS OF AXIS BANK

STRENGTHS

• Axis bank as given the rating as one of top three position in terms of fastest
growth in private sector bank
• Financial express has given number two position and BT-KPMG has rated AXIS
bank as a best bank with some 26 parameters.
• The bank has a network of 1493 domestic branches and 8324 ATM’s.
• The bank has its presence in 971 cities and towns.
• The banks financial position grows at a rate of 20% every which is a major
positive sign for any bank.

• WEAKNESSES
• Gaps – majorly they concentrated in corporate, wholesale banking treasury
services, retail banking. Foreign branches constitute only 8% of total assets.
• Very recently the bank started focusing its attention towards personal banking
and rural areas.
• There are lots of financial banking product gaps in terms of performance as well
as reaching out to the customer.
• The investor of axis bank id constantly fluctuating in higher margins which
makes investor in an uncomfortable position most of the time.
• There are many fraudulent involved in credit card as the banks process credit
card approval even without verification of original document.
• Their financial consultants are not wise enough to guide the customer towards
right investment.
• Customer services has to improve a lot in order to be in a race with other major
players

29
OPPORTUNITIES

• Acquisition to fill the gap.

• In 2009 alliance with MotilalOswal for online trading for 10 million customers.
• In 2010 acquired Enam securities pvt ltd – broking and investment banking.
• In Sep 2009, SEBI approved Axis Assets Management Co. for mutual fund
business.
• No. of e-transaction increased from 0.7 million to around 2 million.
• Geographical expansion to rural market -80% of them have no access to formal
lending.
• 46% use informal lending channels.
• 24% unregulated money lenders.
• Now number of branches increased to 1493 from 339.
• Last quarter there were 48 new branches open across the nation.
• Since it is a new age banking there are lot of opportunities to have the advances
technicalities in banking solution compared to existing major players.
• The assets in their international operations are growing at very faster pace with
a growth rate of 9%.
• The concept of ETM (everywhere teller machine) by AXIS BANK had a good
response in terms of attracting new customers in personal banking segment.

THREATS

• Since 2009, RBI has an increased CRR by 100 basis points.

• Increased repo rate reverse repo rate by 50 points -11 time of late.
• Increasing popularity of QIP’s due to ease in fund raising.
• RBI allowed foreign banks to invest up to 74% in Indian banking.
• Government schemes are most often services only by govern banks like SBI
Indian Banks, Panjab National Bank etc.
• ICICI and HDFC are imposing strong threats in terms of their expansion in
customer base by their aggressive marketing strategies.

30
 CHAPTER = 2

RESERCHMETHODOLOGY

INTRODUCTION

The researcher adopted the analysis of data in a manner that to combine relevance to
purpose with economy in procedure. Researcher design is the based define of a
research problem. The preparation of the design of the project is standard analytical of
researcher favourite.

It was used in secondary data that was published already as annual report of the bank
in bank website, journals, machine and newspapers and other secondary data sources.
This secondary data may be already collected and analysed but gap in period of the
study and variables which we want to know.

The study mainly connected annual financial report that are last five years company
final accounts (balance sheet and profit and loss account)

2.1 OBJECTIVE OF THE STUDY

 To know the liquidity position and solvency

 To study the profitability of axis bank
 To find financial performance and efficiency use of capital .
 To Determine the Profitability, Liquidity, ratios.
 To study the present and past financial system of axis bank.

2.2 HYPOTHESIS

H0:- The Fundamental analysis of axis bank is favourable.

H1:- The fundamental analysis of axis bank is not favourable.

31
2.3 SCOPE OF THE STUDY

The current study chooses one private sector bank to evaluate the financial
performance themain scope of the study was to put into practical the aspect of the
study into real life work experience. The study applies Ratio analysis based on last 5
years Annual financial reports of axis bankin India.

❖ The study has great significance and provides benefits to various parties whom
directly
❖ Or indirectly interact with the bank.
❖ It is beneficial to management of the bank by providing crystal clear picture
regarding
❖ Important aspect like liquidity, leverage, activity and profitability.
❖ The study is also beneficial to employees and offers motivation by shoving
how actively they are contributing for bank growth.
❖ The investors who are interested in investing in the bank’s shares will also get
benefited Going by going through the study and can easily take decision
whether to invest or not to
❖ To know whether the bank is growing or incurring losses or it is stagnant in its
performance.

2.4LIMITATION OF THE STUDY

Due to constraints of time and resources, the study is likely to suffer from certain
limitations. Some of these are mentioned here under so that the findings of the study
may be understood in a proper perspective. The limitations of the study are:

•The study is based on the secondary data and the limitation of using secondary data
may affect the results.

•The secondary data was taken from the five years annual reports of the Axis Bank. It
may be possible thatwhich does not effectively show the actual fluctuation of the bank
profitability. the data shown in the annual reports may be limited period of time
which does not effectively show the actual fluctuation of the bank profitability.

32
• Difference in definitions
• Limitations in accounting records
• Lack of proper standards
• No allowances for price level changes
• Changes in accounting procedure
• Quantitative factors are ignored
• Limited use of single ratio
• Background is over looked
• Limited use

1. LIMITED USE OF A SINGLE RATIO

A single ratio would not be able to convey anything, as the single ratio in itself is
meaningless, it does not furnish a complete picture. Neither it can be explained, nor
can any decision be taken on this basis. Hence, it is essential to ponder over all
relating ratios while drawing inferences.

2. LACK OF STANDARD RATIOS

In practice, there is no uniformity in the definition of various terms used in ratio

analysis. For example, some companies treat net current assets (current assets- current
liabilities) as working capital, while others only current assets. There are no well
accepted standard or rules of thumb for all ratios which can be accepted as norms.

3. INHERENT LIMITATIONS OF ACCORDING

Ratios are calculated from accounting records which are subject to accounting
principles, conventions, concepts and personal judgments. Any ratio based on the
facts and figures of such financial statements suffers from inherent limitations.

4. WINDOW DRESSING
Windows dressing means manipulation of accounts in a way so as to present a better
picture than what is actually it. By doing so, it is possible to cover up bad financial

33
position. One should be very careful in making a decision from ratios calculated from
such financial statements.

5. DIFFERENCE IN ACCOUNTING METHODS AND SYSTEMS

Comparability of financial statements is affected when differences are traced out in
accounting methods and systems followed by different firms.

6. PRICE LEVEL CHANGE

Changes in price level affect the comparability of ratios. A change in price level can
seriously affect the validity of comparison of ratio for different years.

7. PERSONAL BIAS
Ratios have to be interpreted, but different people may interrupt the same ratios in
different way. Ratios are only meaning of financial analysis, but not an end in them. It
should be clearly noted that ratios are only tools and personal judgment of the analyst
is more important.

8. NO SUBSTITUTE FOR SOUND JUDGMENT

Ratios analysis is one of the methods of interpretation and drawing inferences. It only
provides little information for decision making conclusions drawn from ratio analysis
are not sure indicators of bad or good management.

9. QUALITATIVE FACTORS IGNORED

Ratios are arithmetical expressions, so the qualitative aspects cannot be presented
through ratios. Normally qualitative factors that may influence the conclusion drawn
are ignored while computing ratios.

10. INCOMPARABLE
Not only industries differ in their nature but also the firms of the similar business
widely differ in their size and accounting procedure etc. It makes comparison of ratios
difficult and misleading.

34
11. PROPER COMPARISON NOT POSSIBLE
Comparison between two variables proves worthwhile provided their basis of
valuation is Identical. But, in reality, it is not possible, such as methods of valuation
of stock-in-trade or charging Different methods of depreciation on fixed assets etc.
That is, if different methods are followed by different firms for their valuation, then
comparison will practically be of no vies.

12. UNRELIABLE DATA

Ratio depends on figures of the Financial Statement. But in most cases, the figures
are window-dressed. As a result, the correct picture cannot be drawn up by the ratio
analysis, although certain structure defects can be detected. Moreover, manipulation
made thought time of reporting which may lead manipulate the ratio analysis as well.

13. TREND ANALYSIS NOT ALWAYS POSSIBLE

Ratio analysis becomes more meaningful and significance if trend analysis (i.e. the
analysis over a number of years) is possible instead of analysing the result of a
particular year. But in practice, it is not always possible.

14. NOT HELPFUL FOR PREPARING BUDGETS

Ratios are computed on the basis of past result. It does not help properly to predict the
future, to prepare budgets and estimates since the business policies are constantly
changing.

Financial analysis is mainly done to compare the growth, profitability and financial
soundness of bank by diagnosing the information contained in the financial
statements. Financial ratio analysis is done to identify the financial strengths and
weaknesses of the bank by properly establishing relationship between the items of
Balance Sheet and Profit & Loss Account for period of five years.

It helps in better understanding of bank financial position, growth and performance by

analysing the financial statements with various tools and evaluating the relationship
between various elements of financial statements.

35
2.5 NEED OF THE STUDY

The financial parameters are the ultimate performance indicator of any bank. This is
because invariability all costs and efficiency activities and solvency position of the
bank will reflect the financial status of the bank.

The following are stated to be in the need for the study.

➢ To know the financial performance of the bank

➢ To know the liquidity position of the bank
➢ To know the operating efficiency of the bank.
➢ To understand the variation in ratios over a period of time.
➢ To know the reason for the variation in the ratio.

Financial ratios quantify many aspects of a business and are an integral part of
the financial statement analysis. Financial ratios are categorized according to the
financial aspect of the business which the ratio measures. Liquidity ratios measure the
availability of cash to pay debt. Activity ratios erasure how quickly a firm converts
non-cash assets to cash assets. Debt measure the firm's ability to repay long-term
debt.

Profitability ratios measure the firm's use of its assets and control of its expenses to
generate an acceptable rate of return. Market ratios measure investor response to
owning a company's stock and also the cost of issuing stock. These are concerned
with the return on investment for shareholders, and with the relationship between
return and the value of an investment in company's shares.

Financial ratios allow for comparisons

• Between companies
• Between industries
• Between different time periods for one company
• Between a single company and its industry average

36
Ratios generally are not useful unless they are benchmarked against something else,
like past performance or another company. Thus, the ratios of firms in different
industries, which face different risks, capital requirements, and competition, are
usually hard to compare.

2.6 DATA COLLECTION

Main data of this study is based to the annual financial report’s axis bank from in
2010 to 2018. also, researcher used four main financial statements for ratio analysis of
bank such as; balance sheets, an income statement, cash flow statement; statement of
shareholder’s equity although study strongly emphasis the first main reports.

2.7 SECONDARY DATA

The major source of data for this project was collected through Balance sheet and
Profit and loss of Axis bank account of 8-year period from 2010-2018 Descriptive
research is used in this study because it will ensure the minimization of bias and
maximization of reliability of data collected.

The fact and information already available through financial statements of earlier
years and analyse these to make critical evaluation of the available material. Hence by
making the type of the research conducted to be both Descriptive and Analytical in
nature

2.8 DATA ANALYSIS

The study used all important tools of ratio analysis for profitability evaluation of
bank. It indicates the different steps such Selection of financial report, Identification
of balance sheet, income statement and cash flow statement, ratio analysis,
mathematical calculation, statistical analysis of bank financial report year by year
comparison and among industry First step of model, we do a selection of financial
report that means a choose of annual financial report.

The annual financial report presents financial data of a company's position, operating
performance, and funds flow for an accounting period. We use the annual reporting
of bank in 2010 to 2018. Second step of model, researcher identify the balance

37
sheet, income statement, cash flow statement from the annual financial report. study
used some data from balance sheets for different kind of ratio such as liquidity ratios,
asset management ratios, debt management ratios.

In contrast, we were used some sources from income statement. When

analysis the ratio of profitability and debt management ratio employment of
bank income statement and balance sheet is must. However, the use of some data
from the cash flow statement for ratio analysis such as market value ratio is also
possible.

The third step of model, study identify the suitable ratio for profitability analysis and
evaluation the ratio such as current ratio, liquidity ratio, asset management ratio,
profitability ratio, debt coverage ratio, market value etc. All types of ratio are most
important for how well a bank to generate its assets, liquidity, revenue, expense,
shareholder equity profit or loss are also here.

The Forth step of model, study used the Mathematical calculation of bank. Some
figure from the income statement and balance sheet. Financial calculators were used
to determine the results a f financial ratio calculation a graphical analysis for
evaluation of bank using Microsoft excel is employed and finally study compares the
results to manipulate objectives.

2.9 RESEARCH INSTRUMENT

Study used secondary data collected from publishers of the bank final accounts. It is
limited to last eight years 2010-2018 annual financial reports.

38
 CHAPTER = 3

REVIEW OF LITRETURE

Corporate liquidity can be examined along two basic dimensions: static and
dynamic (Uyar, 2009). Static analysis is focused on traditional ratios (current and
quick ratios) based on the data from the balance sheet. These ratios assess to what
extent current liabilities are covered by current assets. Dynamic analysis is
based on cash outflows and inflows and uses cash conversion cycle (CCC) to measure
effectiveness of a company’s ability to generate cash. It comprises both balance sheet
and income statement data to create a measure with a time dimension (cash flow
within the operating cycle of the firm). To conduct a comprehensive liquidity analysis
both types of ratios are used. the essential partin management of working capital
liesin maintaining liquidity in day-to-day operations is to ensure smooth running of
the business and that it meets its obligations.

2. (Deloof, 2003). Liquidity management, which refers to management of current

assets and liabilities, plays an important role in the successful management of a
business and secures future growth. The liquidity position of a business is about the
degree in which it can dispose money. Liquidity management is necessary for all
businesses, small, medium or large. Nevertheless, this is not an effortless task
because managers must ensure that the firm is running in an efficient and profitable
manner and in most cases; there are high possibilities of mismatch of current assets
and current liabilities during this process. If this happens and firm’s manager failed to
manage it properly then it will affect firm’s growth and profitability which will
further lead to financial distress and finally firms can go bankrupt.

3. Qassim&Ramiz (2011) indicate the fact that liquidity refers to the available cash
for the near future, after taking into account the financial obligations corresponding
to that period. Liquidity risk consist in the probability that the organization
should not be able to make its payments to creditors, as a result of the changes in the
proportion of long-term credits and short-term credits and the un correlation with the
structure of organization's liabilities. Further, Qazim and Ramiz (2011) posit that
liquidity management is very important for every organization that means to pay
current obligations on business that include operating and financial expenses that

39
are short term. Liquidity is particularly important to shareholders, long-term lenders
and creditors, as it provides information about a particular business’s safety
margins afforded to creditors and its ability to repay loans. The levels of
inventory, credit, accounts payable and cash that form part of the overall cash flow of
a businessdependent variable (profitability) was measured in terms of return on
investment ROI established a negative association between ROI and the current ratio,
cash turnover ratio.

4. (Maness, 1994). Affect the liquidity of the firm by maintaining an appropriate

level of liquidity, a business should be in a position to survive down turns and
moreover, it may be able to exploit profitable opportunities as they arise. On the other
hand, as asserted by Cooper, illiquidity, unless remedied, will give rise to insolvency
and eventually bankruptcy as the Business’s liabilities exceed its assets. Excessive
debt exposes the business to potentially large interest costs and the risk of potential
bankruptcy. Shareholders, long term lenders and creditors evaluate the level of risk
they bear, and require compensation for the risks, which arise from a business's
capital structure. The proportion of assets financed by creditors are of
particular importance to shareholders, since creditors have a prior claim on the
Liquidity ratios measure a business' ability to meet the payment obligations by
comparing the cash and near-cash with the payment obligations. If the coverage
of the latter by the former is insufficient, it indicates that the business might face
difficulties in meeting its immediate financial obligations. This can, in turn, affect the
company's business operations and profitability. The Liquidity versus Profitability
Principle: There is a trade-off between liquidity and profitability; gaining more of one
ordinarily means giving up some of the other.

5. Morris and Shin (2010) conceptually defines the liquidity ratio as “realizable cash
on the balance sheet to short term liabilities.” In turn, “realizable cash” is
defined as liquid assets plus other assets to which a haircut has been applied. Ration
analysis is one of the conventional ways that use financial statements to evaluate the
company and create standards that have simply interpreted financial sense.

6. Raheman and Nasr (2007) in their study in which average collection period,
inventory turnover in days, average payment period, CCC, current ratio, debt ratio,
size of the firm, and financial assets to total assets ratio were the selected independent

40
variables and net operating profit was the dependent variable found a strong negative
relationship between the current ratio and debt ratio and profitability of the firms. The
study also established a negative relationship between liquidity and profitability.
Furthermore, they found out a significant negative relationship between debt used by
the firm and its profitability.

7. Benjamin and Kamalavali (2006) in their study in which the independent

variables used were current ratio, quick ratio, inventory turnover ratio, working
capital turnover ratio, debtor’s turnover ratio, ratio of current asset to total asset, ratio
of current asset to operating income, comprehensive liquidity index, net liquid
balance size and leverage and growth while dependent variable (profitability) was
measured in terms of return on investment ROI established a negative association
between ROI and the current ratio, cash turnover ratio, current asset to operating
income and leverage. On the other hand, they established a positive
association between ROI and the quick ratio, debtor’s turnover ratio, current asset to
total asset and growth rate.

8. Dong (2010) in his study that focused on the variables that include profitability,
conversion cycle and its related elements and the relationship that exists between
them reported that the firms’ profitability and liquidity are affected by working capital
management. The relationship among these variables was found to be strongly
negative. This denote that decrease in the profitability occur due to increase in cash
conversion cycle. It is also found that if the number of days of account receivable and
inventories are diminished then the profitability will increase numbers of days of
accounts receivable and inventories.

9. Saswata Chatterjee (2010) focused on the importance of the fixed and current assets
in the successful running of any organization. It poses direct impacts on the
profitability and liquidity. There have been a phenomenon observed in the business
that most of the companies increase the margin for the profits and losses because this
act shrinks the size of working capital relative to sales. But if the companies want to
increase or improve its liquidity, then it has to increase its working capital.

10. Islam et al. (2009) conducted a research on financial diagnosis of the financial
institutions of Bangladesh: A comparativestudy on IPDC, IDLC andICB and through

41
ratio analysis they measured the financial health of the financial institutions and
concluded that financial institutions play a key role in the economic development of
capital market of the country.

11. Hassan and Habib (2010) usedfinancialratios for conducting a research on

performance evaluation of the pharmaceutical companies in Bangladesh. They
revealed thatthefinancial performance-ofBeximco Pharmaceuticals Ltd. is better than
Square Pharmaceuticals Ltd.

12.Also,Salauddin(2001) examined the profitabilityofthe pharmaceutical companies

of Bangladesh. By adopting ratio analysis, mean, standard deviation and co-efficient
of variation, he found that the profitability of the pharmaceutical sector was very
satisfactory in terms of the standard norms of return on investment.

13. Raheman andMohamed (2007) studied the effectof average collection period,
inventory turnover in days, average payment period, cash conversion cycle, and
current ratio on the net operating profitability of Pakistani firms. They found that as
the cash conversion cycle increases, it leads to decreasing profitability of the firm and
managers can create a positive value for the shareholders by reducing the cash
conversion cycle to a possible minimum level.

14. Reilly and Brown (2005) stated that financial statement analysis seeks to evaluate
managerial performance in several important areas including profitability, efficiency
and risk. The ultimate goal of that analysis is to provide insights that will help us
project future managerial performance. They also suggest that financial ratios
should be examined relating to the economy, the firm’s industry, firm’s main
competitors and the firm’s past relative ratios. the issue of trade-off between liquidity
and profitabilityhas been discussed intensively sincethisit's crucially important for
companies.

15. Ross (2000) and Myers (2003) mention that excess liquidity is an expense for the
company. Money tied up in current assets can be alternatively deposited or invested
and generate interest income. Thus, the price of working capital over financing is the
interest rate. In the case of liquidity deficit, the company must either attract short term

42
loan or sell some liquid assets, which is also an expense. Only the optimal
level of liquidity benefits profitability.

16. Taping and Stephan (2008) in their research on profit determinants found
that liquidity of Ukrainian firms, measured by current ratio, has a significant positive
influence on profitability. One can name the size of the company, intangible assets
and liquidity among other important determinants of profitability for companies
operating in the emerging markets. Therefore, liquidity has a considerable impact
on firm’s profitability and that is why it requires proper management. Banking Sector
plays an important role in economic development of a country. The banking system
of India is featured by a large network of bank branches, serving many kinds of
financial services of the people. The State Bank of India, popularly known as SBI is
one of the leading banks of public sector in India. SBI has 14 Local Head Offices and
57 Zonal Offices located at important cities throughout the country. ICICI Bank is
second largest and leading bank of private sector in India. The Bank has 2,533
branches and 6,800 ATMs in India. The purpose of the study is to examine the
financial performance of SBI and ICICI Bank, public sector and private sector
respectively. The research is descriptive and analytical in nature. The data used for the
study was entirely secondary in nature. The present study is conducted to
compare the financial performance of SBI and ICICI Bank on the basis of ratios such
as credit deposit, net profit margin etc. The period of study taken is from the year
2007-08 to 2011-12. The study found that SBI is performing well and financially
sound than ICICI Bank but in context of deposits and expenditure ICICI bank has
better managing efficiency than SBI (DR. ANURAG, 2012).

17. Reddy K. Sriharsha (2012) analysed relative performance of banks in India using
CAMEL approach. It is found that public sector banks have appreciably improved
indicating positive impact of the reforms in liberalizing interest rates, rationalizing
directed credit and Investments and increasing competition.

18. Singh A.B., Tendon P. (2012) examined the financial performance of SBI and
ICICI Bank, public sector and private sector respectively. The study found that SBI is
performing well and financially sound than ICICI Bank but in context of deposits and
expenditure ICICI bank have better managing efficiency than SBI.

43
19. Srinivas K., Saroja L. (2013) compared and analyzed the Financial Performance
of HDFC and ICICI Bank. For the purpose of analysis of comparative financial
performance of the selected banks using CAMELS model with test. The result
showed that there is no significance difference between the ICICI and HDFC bank’s
financial performance but the ICICI bank performance is slightly less compared with
HDFC. Determinants of bank profitability can be split between those that are internal
and those that are external. Internal determinants of bank profitability can be defined
as those factors that are influenced by the banks management decisions and
policy objectives. Management effects are the results of differences in bank
management objectives, policies, decisions, and actions reflected in differences in
bank operating results, including profitability.

20. Zimmerman (1996) found that management decisions, especially regarding

loan portfolio concentration, were an important contributing factor in bank
performance. Researchers frequently attribute good bank performance to
quality management. Management quality is assessed in terms of senior
officer’s awareness and control of the banks policies and‟ performance.

21. Haslem (1968, 1969) computed balance sheet and income statement ratios for all
the member banks of the US Federal Reserve System in a two-year study. His results
indicated that most of the ratios were significantly related to profitability,
particularly capital ratiosinterest paid and received, salaries and wages. a number of
studies have concluded that expense control is the primary determinant of bank
profitability. Expense management offers a major and consistent opportunity for
profitability improvement. With the large size and the large differences in salaries and
wages, the efficient use of labour is a key determinant of relative profitability. Staff
expenses, as conventional wisdom proposes, is expected to be inversely related to
profitability because these costs reduce the „bottom line or the total operations of the
bank. The level of staff‟ expenses appear to have a negative impact on banks ROA
in the study of Bourke (1989).

22. ‟ However, Molyneux (1993) found a positive relationship between staff

expenses and total profits. As he suggests high profits earned by firms in a regulated
industry may be appropriated in the form of higher payroll expenditures.

44
23. Manish Mittal and ArunnaDhademade (2005) they found that higher profitability
is the only major parameter for evaluating banking sector performance from the
shareholders point of view. It is for the banks to strike a balance between commercial
and social objectives. They found that public sector banks are less profitable than
private sector banks. Foreign banks top the list in terms of net profitability. Private
sector banks earn higher non-interest income than public sector banks, because these
banks offer more and more fee-based services to business houses or corporate sector.
Thus, there is urgent need for public sector banks to provide such services to stand in
competition with private sector banks.

24. I.M. Pandey (2005): An efficient allocation of capital is the most important
financial function in modern times. It involves decision to commit the firm's funds to
the long-term assets. The firm’s value will increase if investments are profitable and
add to the shareholders wealth. Financial decisions are important to influence the
firm’s growth and to involve commitment of large amount of funds. The types of
investment decisions are expansion of existing business, expansion of new business
and replacement and modernization. The capital budgeting decisions of a firm has to
decide the way in which the capital project will be financed. The financing or capital
structure decision. The assets of a company can be financed either by increasing the
owners claims on the creditors’ claims. The various means of financing represent the
financial structure of an enterprise.

25. MedhatTarawneh (2006) financial performance is a dependent variable and

measured by Return on Assets (ROA) and the intent income size. The independent
variables are the size of banks as measured by total assets of banks, assets
management measured by asset utilization ratio (Operating income divided by total
assets) operational efficiency measured by the operating efficiency ratio (total
operating expenses divided by net income)

27. K. C. Sharma (2007) Banking has entered the electronic era. This has been due to
reforms introduced under the WTO compliances. Private sector banks have been
permitted to open their shops in the country. These banks are either foreign or
domestic banks with foreign partnerships. Some of them have been set up by
Development Financial Institutions in order to embrace concept of universal banking,
as practiced in advanced countries. The private sector on the other hand have begun
45
their high-tech operations from the initial stage and made the elite of the country to
taste the best banking practices that happens in the western countries. They have
foreseen the digital world and have seen the emerging electronic market, which has
encouraged them to have a better customer service strategy that would be able to
deliver the things as per customer’s requirement.

28. Hr Machirajn international publishers (2009): Efficiency can be considered from

technical, economical or empirical considerations. Technical efficiency implies
increase in output. In the case of banks defining inputs and output is difficult and
hence certain ratios of costs to assets or operating revenues are used to measure banks
efficiency. In the Indian context public sector banks accounts for a major portion of
banking assets, it is necessary to evaluate the financial decisions of these banks and
compare them with private sector banks to know the quality of financial decisions on
its impact or performance of banks in terms of efficiency, profitability,
competitiveness and other economic variables.

29. DR.S. Gurusamy (2009): One of the key elements of importance for shaping the
financial system of a country is the pension fund. The fund contributes to the
development of social security systems of a country is the pension fund. The fund
contributes to the development of social security system of a country. A fund is
established by private employers, governments, or unions for the payment of
retirement benefits. Pension funds are designed to provide for poverty relief,
consumption smoothing etc. Pension funds not only provide compensation for the
loyal service rendered in the past, but in a broader significance. Works as a measure
of socio- economic justice. Pension system refers to the framework of arrangement
under which individuals gain specified entitlements to a regular income in retirement
called pension.

30. Dangwal and Kapoor (2010) also undertook the study on financial performance of
nationalized banks in India and assessed the growth index value of various parameters
through overall profitability indices. They found that out of 19 banks, four banks had
excellent performance, five banks had good performance and six banks had poor
performance. Thus, the performance of nationalized banks differs widely.

46
31. Prasana Chandra (2010): Fundamental of financial management covers all the
aspects of the subject from the basics overview of the financial environment to the
financial analysis and financial planning. The basic consists of forms of business
organization which gives detailed information about the financial management of the
organization. After the analysis part budgeting of capital and fundamental valuation of
concept is in detail. It provides an introduction to the financial management and to the
financial environment. The fundamental of financial management provides a good
coverage of the basic concepts relating to the financial environment. The topics are
explained with various examples like the tax system, financial institution, banking
arrangement & the regulatory framework. All the concepts are explained using
numerous examples & illustration besides the illustration given within the chapter,
additional concepts, tools & technique with illustration are provided at the end of
chapter section. The book takes an analytical approach and explains the various
analytical methods in context.

32. Jha DK and D S Sarangi (2011): The financial performance of seven public sector
and private sector banks during the period 2009-10. They used three sets of ratios,
operating performance ratio, financial ratio and Efficiency ratio. The study revealed
that Axis bank was on the top of these banks followed by ICICI, BOT, PNB, SBI,
IDBI and HDFC.

33. NeeruMundrai, KamniTandon, Nidhi Malhotra (2011) excel books found that
there is significant impact on the SBI’s performance due to entry of new private sector
banks as the new banks are profit oriented institutions while traditional banks are
operating with the shackles of social responsibility towards the society. The other
reasons that can be attributed are slow technological up gradation, poor staffing and
employment practices which affect long term profitability of public sector banks. The
study revealed that profitability of SBI is lower than that of private sector banks even
predicting of private sector banks (business per employee) is higher than state banks.

34. Fernando Ferreng (2012) it is generally agreed that recent economic crisis
intensified worldwide competition among financial institution. This competition has
direct impact on how bank deal with their customer and achieve its objectives
performance evaluation of banks is the key function for improving banks

47
performance. Banks profitability and success to a large extent depends on bank
branch financial performance

35. RamchandanAzhagasahi and SandanvnGejalakshmi (2012): In their study found

the impact of assets management operational efficiency and bank size on the financial
performance of the public sector and private sector bank. The research revealed that
bank with higher total capital deposits and total assets do not always mean that they
have better financial performance. The overall banking sector is strongly influenced
by assets utilization, Operational efficiency and interest income.

36. NutanTroke and P K Pachorkar (2012): The study related that the private sector
banks the percentage of other income in the total income is higher than public sector
bank. Public sector bank depends on intent income for their efficiency and
performance. The operational efficiency of private sector banks is better than public
sector banks. Private sector bank uses their assets quality better than public sector
banks.

37. Dr.Dhanabhakyam& M. kavitha (2012) in their research used some important

ratio to analyses the financial performance of selected public sector banks such as
ratio of advances to assets, ratio of capital to deposit, ratio of capital to working fund,
ratio of demand deposit to total deposit, credit deposit ratio, return on average net
worth ratio, ratio of liquid assets to working fund etc. The ratio of advances to assets
shows an increasing trend for most of the public sector bank. It shows aggressiveness
of bank in lending which ultimately result in high profitability. The ratio of capital to
deposit also indicates an increasing trend in the capital of banks. This ratio enables the
bank to meet the contingencies of repayment of deposit. The ratio of capital to deposit
in decline. The ratio capitals to working fund also indicate that the overall efficiency
of the selected public sector banks is good. On the other hand, the ratios of demand
depart to total deposit is declining. This indicates better liquidity position of bank.
The credit deposit ratio of most of the bank shows an increasing trend. It shows that
the profitability of the banks in government. The return on average net worth also
shown an increasing trend.

38. Debashish Sur (2012) a financial statement is a collection of data organized

interim's of some laid down accounting procedures. Financial statements are blue

48
print of the working or performance of any organization. The users of financial
statements are direct users and indirect users

The direct users are

➢ Owners of bushiness
➢ Management
➢ Creditors
➢ Tax authorities
➢ Customers
➢ Indirect users are

➢ Stock exchanges
➢ Financial analysis
➢ Trade associations
➢ Competitors
➢ Financial press
➢ General public.

39. Ravinder Kaur (May 2012): A comparative study of SBI and ICICI Bank, the
author has written an International Multidisciplinary Research Journal. Due to
globalization, banking sector has developed a lot. The banking sector in India has
very large network. One of the popular banks is the State Bank of India. The SBI has
over 16,000 branches over a wide range of banking. The main objective of study is to
examine the financial performance of SBI and ICICI Bank. SBI is a public sector
bank and ICICI bank is a private sector bank . Ratio analysis was applied to analyze
and to compare the trends in banking business and financial performance.

40. Dr. Anurag B Singh and Ms. Priyanka Tandon (2012): The researcher has
mentioned the importance of the banking sector in the economic development of the
country. In India banking system is featured by large network of Bank branches,
serving many kinds of financial services of the people. The research Methodology
used by there is a comparative analysis of both the banks based on the mean and
compound growth rate (CGR). The study is based on secondary data collected from

49
magazines, journals & other published documents. Which was a limitation since it’s
difficult to prove the geniuses of the data.

41. PawankumarAvdhanam and SriniwasKolluru, RamkrishneFonnd, (2013) in their

study that state bank group other than SBI home finance has performed better
throughout the period of study. Though there was a decline in PAT for the year 2000-
01 but then there was continuous rise in PAT. Most public sector banks have
performed better over year.

42. Vasant Desai, (2013): The performance of a bank can be assessed in their broad
dimension viz. business development, customer service and housekeeping. The
resources that a branch has are manpower, premises, planning, system procedure,
organizational structure and general administration. The efficiency of a branch would
be measured by the extent which it has balanced between three parameters.

43. William George A J and Dr. Manoj P K (2013): This research paper is a study of
the modern management philosophy of customer relationship management which
deals with the maintenance of a sound relationship with the customers. The study is
carried out in the Kerala based commercial banks. Also, this study compares the CRM
between the public and private sector banks of the same region. Kerala has been very
conducive and of great benefit for the development of banking sector. The Indian
banking sector is undergoing many changes and the banks are facing many
challenges. Customers switch banks and go to other banks where they find better
services and thus the find it difficult to retain their old customers.

46. E. Gordon and K. Natrajan (2014): The economic development of any country
depends on the existence of a well-organized financial system. It includes financial
markets and financial institutions which support the system. Financial system
provides the intermediation between savings and investment and promoters faster
economic development.

47. GarimaChoudhary (2014): used network of banks, productivity of banks, capital

adequacy ratio, and growth of banks as an indicator of measuring banks performance.
The study related that private sector banks have expanded faster than public sector
banks. The capital adequacy of new private sector banks is above RBI minimum

50
requirements. However, the assets base of public sector banks rises faster than private
sector banks.

49. RenuBagoria (2014): The main objective of this paper is to make a comparative
study between private sector banks and public sector banks and the adoption of
various services provided by this bank. The different services provided by these banks
are M-Banking, Net banking, ATM, etc. One of the services provided by the bank i.e.
Mobile banking helps us to conduct numerous financial transactions through mobile
phone or personal digital assistant (pda). Data analysis had been made in private
sector banks like ICICI Bank, INDUSSIND Bank, HDFC Bank, Axis Bank and
public sector banks like SBI Bank, SBBJ, IDBI and OBC Bank. These banks also
provide Mobile Banking service. The overall study showed that the transaction of
Mobile banking through public sector bank is higher than private sector.

50. AlpeshGajera (2015) in his research article a financial performance evaluation of

private and public sector banks found that there in significance difference in the
financial performance of these banks and private sector banks are performed better
than public sector banks in respect of capital adequacy ratio and financial
performance,

51. Dr Richa Jain, Prof.Mitali Amit Shelankar& Prof Bharti SumitMirchandani,

(2015) Tools / Techniques of financial statement analysis: - The various tools and
techniques of financial statement analysis are

• Trend Percentage Analysis: It is also known as Intra firm comparison in which the
financial statements of the same company for few years are compared for some
important series of information.

• Comparative Statement: These are the statement of financial positions at different

periods of time. The financial position is shown in a comparative form over two
period of time.

• Common Size Statements: The common size statements, balance sheet and income
statements are shown in terms of percentages. The data is shown as percentage of
total assets, liabilities and sales.

51
• Ratio Analysis: It is a technique of analysis and interpretation of financial
statements. It is the process of establishing and interpreting various financial ratios for
helping in taking decisions.

• Cash Flow Statements: It shows the changes in cash flow between two periods.

52. Bollen (1999) conducted a study on Ratio Variables on which he found three
different uses of ratio variables in aggregate data analysis: (1) as measures of
theoretical concepts, (2) as a means-to control an extraneous factor, and (3) as a
correction for heterosexuality. In the use of ratios as indices of concepts, a problem
can arise if it is regressed on other indices or variables that contain a common
component. For example, the relationship between two per capitalmeasures may be
confounded with the common population component in each variable. Regarding the
second use of ratios, only under exceptional conditions will ratio variables be a
suitable means of controlling an extraneous factor. Finally, the use of ratios to correct
for heteroscedasticity is also often misused. Only under special conditions will the
common form with and evaluated.

52
 CHAPTER: -4

DATA ANALYSIS AND INTERPRET

4.1 CURRENT RATIO

It is calculated as a ratio of a company’s current assets to its current liabilities. The

current ratio is widely used by banks and financial institutions while sanctioning loans
to the companies and therefore this is a vital ratio for any company. There are
different ways of analysing and improving current ratio to portray a better liquidity
position of a company

TABLE = 4.1

BANKS CURRENT RATIO

YEAR CURRENT CURRENT RATIO

ASSESTS LIABILITY
2013-2014 26,728.62 29,473.35 0.9068

2014-2015 32,707.53 33,749.76 0.9691

2015-2016 38,466.56 37,307.63 1.0310

2016-2017 44,263.19 44,256.56 1.0001

2017-2018 50,723.64 47,986.82 1.0570

(SOURCES:- Secondary Data from Financial Statements of Axis Bank)

53
 Graph No.4.1

CURRENT RATIO
1.1

1.05

0.95

0.9

0.85

0.8
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Source: Done by Resrachers

INTREPRETATION:

Table 4.1 presents current ratio of five years from 2014 to 2018. In the above ratios
the bank current ratio of 2014 is 0.9068, 2015 is 0.9691 2016 is 1.0310, 2017 is
1.0001 and in 2018 is 1.0570 it shows us that bank current ratio is going to one with
increasing positive growth year by year and the ratio is belove 2 it indicates the bad
short-term solvency of the axis bank.

54
4.2 CASH POSITION RATIO

Cash ratio is the ratio of cash and cash equivalents of a bank to its current liabilities. It
is an extreme liquidity ratio since only cash and cash equivalents are compared with
the current liabilities. It measures the ability of a business to repay its current
liabilities by only using its cash and cash equivalents and nothing else.

TABLE = 4.2

CASH POSITION RATIO

YEAR CASH CURRENT RATIO

LIABILITY

2013-14 17,041.32 29,473.35 0.578

2014-15 19,818.84 33,749.76 0.587

2015-16 22,361.15 37,307.63 0.599

2016-17 30,857.94 44,256.56 0.697

2017-18 35,481.06 47,986.82 0.739

Sources: - Secondary data from financial statement of axis bank

55
 Graph No.4.2

0.8
CASH POSITION RATIO

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2013-14 2014-15 2015-16 2016-17 2017-18

Sources: - Done by Researcher

Interpretation:-

Table 4.2 present cash ratio of five year from 2014 to 2018 in the above ratio the bank
cash position ratio of 2014 is 0.578 ,2015 is 0.587, 2016 is 0.599, 2017 is 0.697 and
2018 is 0.739. It shows us that bank liquidity is normally good but there is little
increase in current liability in recent years.

56
4.3 NET PROFIT MARGIN RATIO

Net margin measures the overall profitability of a company. It considers all the
operating and financing expenses by the company in its daily operations. In other
words, it tells us how much of the revenue generated by the company is left for
various corporate activities.

TABLE = 4.3

NET PROFIT MARGIN RATIO

YEAR NET PROFIT NET REVENUE RATIO

2013-14 62,176.67 38046.38 1.634233533

2014-15 73,578.22 43843.64 1.678195971

2015-16 82,236.63 50359.01 1.633007281

2016-17 36,792.79 57596.70 0.638800313

2017-18 27,868.13 56747.40 0.491090869

Sources: - Secondary data from financial statement of axis bank.

57
 Graph No.4.3

NET PROFIT MSRGIN RATIO

1.8

1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2013-14 2014-15 2015-16 2016-17 2017-18

Sources: - Done by Researcher.

INTREPRETATION:-

Table 4.3 presents net profit ratio of five years from 2014 to 2018. In the above ratio
the bank net profit margin ratio of 2014 is 2.109,2015 is 2.18,2016 is 2.204, 2017 is
0.8 31 and 2018 is 0.580 it shows us that bank profitability is not satisfactory.

58
4.4RETURN ON EQUITY

ROE is expressed as a percentage and can be calculated for any company if net
income and equity are both positive numbers. Net income is calculated before
dividends paid to common shareholders and after dividends to preferred shareholders
and interest to lenders.

TABLE = 4.4

RETURN ON EQUITY

YEAR NET PROFIT EQUITY RATIO

2013-14 62,176.67 46984.46 1.32

2014-15 73,578.22 47410.44 1.55

2015-16 82,236.63 47656.64 1.73

2016-17 36,792.79 47900.72 0.77

2017-18 27,868.13 51330.78 0.54

Sources: - Secondary data from financial statement of axis bank.

59
 Graph No .4.4

RETURN ON EQUITY
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
RATIO

2013-14 2014-15 2015-16 2016-17 2017-18

Sources: - Done by Researcher.

INTREPRETATION

Table 4.4 shows return on EQUITY of last five years from 2014 to 2018 in the above
ratio the banks return on EQUITY ratio of 2014 is 1.32, 2015 is 1.55, 2016 is 1.73,
2017 is 0.77,and 2018 is 0.54.It shows that banks profitability is not satisfactory and
it decreased in recent years.

60
4.5 RETURN ON ASSETS

Return on assets (ROA) is an indicator of how profitable a company is relative to its

total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a
company's management is at using its assets to generate earnings.

TABLE = 4.5

RETURN ON ASSETS RATIO

YEAR NET PROFIT TOTAL ASSETS RATIO

2013-14 62,176.67 38,324.49 1.622374307

2014-15 73,578.22 46,193.24 1.592835314

2015-16 82,236.63 52,546.76 1.565017999

2016-17 36,792.79 60,146.77 0.611716869

2017-18 27,568.13 69,132.96 0.398769716

Sources: - Secondary data from financial statement of axis bank.

61
 Graph No.4.5

RETURN ON ASSETS RATIO

1.8

1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2013-14 2014-15 2015-16 2016-17 2017-18

Sources: - Done by Researcher.

INTREPRETATION:-

Table 4.5 shows return on assets ratio of last five years from 2014 to 2018 in the
above ratio the banks return on assets ratio of 2014 is 1.62, 2015 is 1.59, 2016 is
1.56, 2017 is 0.61,and 2018 is 0.39.It shows that banks profitability is satisfactory and
it decreased in recent years.

62
4.6 CURRENT ASSETS TURNOVER RATIO

CurrentAssetTurnover - an activity ratio measuring firm’s ability of generating sales

through its current assets (cash, inventory, accounts receivable, etc.). It can be
calculated by dividing the firm's net sales by its average current assets, and it shows
the number of turns made by the current assets of the enterprise.

TABLE = 4.6

CURRENT ASSETS TURNOVER RATIO

CURRENT
YEAR SALES RATIO
ASSETS

2013-14 38,046.38 26,728.62 1.4234

2014-15 43,843.64 32,707.53 1.3405

2015-16 50,359.01 38,466.56 1.3092

2016-17 57,596.70 44,263.19 1.3012

2017-18 56,747.40 50,723.64 1.1188

Sources: - Secondary data from financial statement of axis bank.

63
 Graph No.4.6

CURRENT ASSETS TURNOVER RATIO

2

1.8

1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2013-14 2014-15 2015-16 2016-17 2017-18

Sources: - Done By Researcher.

INTREPRETATION:-

TABLE 4.6 shows the current assets turnover ratio of last five year from 2014 to 2018
in the above ratio the banks current assets turnover ratio of 2014 is 1.42, 2015 is 1.34,
2016 is 1.30, 2017 is 1.309, and 2018 is 1.118.It shows that banks current assets
turnover ratio is not good as liquidity .

64
4.7 FIXED ASSETS TURNOVER RATIO

The fixed-asset turnover ratio is, in general, used by analysts to measure operating
performance. It is a ratio of net sales to fixed assets. This ratio specifically measures a
company's ability to generate net sales from fixed-asset investments,

TABLE = 4.7

FIXED ASSETS TURNOVER RATIO

YEAR SALES FIXED ASSETS RATIO

2013-14 38,046.38 24,102.11 1.5786

2014-15 43,843.64 25,143.11 1.7438

2015-16 50,359.01 35,231.72 1.4294

2016-17 57,596.70 37,468.93 1.5372

2017-18 56,747.40 39,716.79 1.4288

Sources: - Secondary data from financial statement of axis bank.

65
 Graph No.4.7

FIXED ASSETS TURNOVER RATIO

2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
RATIO

2013-14 2014-15 2015-16 2016-17 2017-18

Sources: - Done by Researcher.

INTREPRETATION:-

Table 4.7 shows the fixed assets turnover ratio of last five years from 2014 to 2018.In
the above ratio banks fixed assets turnover ratio of 2014 is 1.57, 2015 is 1.74, 2016 is
1.42, 2017 is 1.53 and 2018 is 1.42.It shows that banks fixed assets turnover ratio of
2015 is good i.e. 1.53 as compared to other four years.

66
4.8TOTAL ASSETS TURNOVER RATIO

The TotalAssetsTurnoverRatio shows how efficiently the total assets of the firm are
employed to generate sales. This ratio gives an idea to the investor and the creditor
about how the firm is managed, and the assets are utilized to generate revenues.

TABLE = 4.8

TOTAL ASSETS TURNOVER RATIO

YEAR SALES TOTAL ASSETS RATIO

2013-14 38046.3801 38324.48882 0.992743

2014-15 43843.6435 46193.23942 0.949136

2015-16 50359.008 52546.76181 0.958366

2016-17 57596.6963 60146.76703 0.957603

2017-18 56747.3988 69132.95799 0.820844

Sources: - Secondary data from financial statement of axis bank.

67
 Graph No.4.8

TOTAL ASSETS TURNOVER RATIO

1.8

1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
RATIO

2013-14 2014-15 2015-16 2016-17 2017-18

Sources: -Done by Researcher. .

INTREPRETATION:-

Table 4.8 shows the total assets turnover ratio of last five years from 2014 to 2018.In
the above ratio banks total assets turnover ratio of 2014 is 0.99, 2015 is 0.94, 2016 is
0.95, 2017 is 0.957, and 2018 is 0.80.It shows that banks total assets turnover ratio of
2018 is not good i.e. 0.82 as compared to other. Four years.

68
4.9 BANKS DEBT RATIO

Debt ratio is a solvency ratio that measures a firm’s total liabilities as a percentage of
its total assets. In a sense, the debt ratio shows a company’s ability to pay off its
liabilities with its assets. In other words, this shows how many assets the company
must sell in order to pay off all of its liabilities.

TABLE = 4.9

BANKS DEBT RATIO

YEAR TOTAL LIABILITY TOTAL ASSETS RATIO

2013-14 34,502.44 38,324.49 0.9003

2014-15 41,725.59 46,193.24 0.9033

2015-16 47,230.27 52,546.76 0.8988

2016-17 54,570.51 60,146.77 0.9073

2017-18 62,834.63 69,132.96 0.9089

Sources: - Secondary data from financial statement of axis bank.

69
 Graph No.4.9

BANK DEBT RATIO

0.91 0.9089

0.908 0.9073

0.906

0.904 0.9033

0.902
0.9003
0.9
0.8988

0.898

0.896

0.894

0.892
2013-14 2014-15 2015-16 2016-17 2017-18

Sources: - Done by Researcher.

INTREPRETATION:-

Table 4.9 Shows the Banks debt ratio of last five years from 2014 to 2018.

The banks debt ratio of 2014 is 0.900, 2015 is 0.903, 2016 is 0.898 2017 is 0.907 and
2018 is 0.908.It shows that banks debt ratio is favorable.comparison of banks debt
ratio is getting better according to recent years debt ratio.

70
4.10 DEBT TO EQUITY RATIO

The debt to equity ratio is a financial, liquidity ratio that compares a company’s total
debt to total equity. The debt to equity ratio shows the percentage of company
financing that comes from creditors and investors. A higher debt to equity ratio
indicates that more creditor financing (bank loans) is used than investor financing
(shareholders).

TABLE NO. 4.10

DEBT TO EQUITY RATIO

YEAR TOTAL LIABILITY TOTAL EQUITY RATIO

2013-14 34,502.44 46984.46 0.73

2014-15 41,725.59 47410.44 0.73

2015-16 47,230.27 47656.64 0.99

2016-17 54,570.51 47900.72 1.13

2017-18 62,834.63 51330.78 1.22

Sources: - Secondary data from financial statement of axis bank.

71
 Graph NO. 4.10

Sources: - Done by Researcher.

INTREPRETATION:-

Table 4.10 Shows the Banks debt to equityy ratio of last five years from 2014 to
2018.The banks debt to equity ratio of 2014 is 0.73, 2015 is 0.73, 2016 is 0.99 2017
is 1.13 and 2018 is 1.22.It shows that banks debt to equity ratio is higher in the year
2017 that is 1.13.Comparison of banks debt to equity ratio is getting high in recent
years.

72
4.11)LOANS AND ADVANCES RATIO

Money provided by the bank to entities for fulfilling their short term requirements is
known as Advances. The loan is a kind of debt while Advances are credit facility
granted to customers by banks. Loans are provided for a long duration which is just
opposite in the case of Advances.

TABLE NO.4.11

LOANS TO ADVANCES ARTIO

YEAR LOANS AND TOTAL ASSTES RATIO

ADVANCES
2013-14 4,39,650 38,324.49 63.58%
2014-15 3,73,069 46,193.24 61.01%
2015-16 3,38,774 52,546.76 64.47%
2016-17 2,81,083 60,146.77 60.85%
2017-18 2,30,066 69,132.96 60.03%

Sources: - Secondary data from financial statement of axis bank.

73
 Graph NO.4.11

LOANS TO ADVANCES RATIO

65.00%

64.00%

63.00%

62.00%

61.00%

60.00%

59.00%

58.00%

57.00%
2013-14 2014-15 2015-16 2016-17 2017-18

Sources: - Done by Researcher

INTREPRETATION:-

Table 4.11 Shows the Banks loans to advance ratio of last five years from 2014 to
2018.The banks loans to advance ratio of 2014 is 60.03%, 2015 is 60.85%, 2016 is
64.47%. 2017 is 61.01% and 2018 is 63.59%.It shows that banks loans to advances
ratio is higher in the year 2016 that is 64.47%.Comparison of banks debt to equity
ratio is getting low in recent years.

74
 CHAPTER = 5

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS

After the study of the component of current assets and current liabilities and the trend
of axis bank, it was found that:

• The liquidity position of bank is good the current ratio is below 2 tfor the
study period , then the bank may have problems of paying its bills on time
However ,low values do indicate a critical problem but should concern the
management.
• Assets turnover ratio should be improved together with the banks financing
mix and its profit margin for a better analysis. A lower turnover ratio means
that the bank is not using its assets optimally .Total assets turnover ratio is a
key driver of return on equity which is quite constant according to axis bank
ratios.
• The solvency position of the bank is not much satisfactory but the bank need
reduce its outside borrowings so that profitability of the bank may increase.
• Current assets of the bank are capable to meet the current liabilities but liquid
assets of the bank is needed to be increased.
• The major concerning part of the study is higher overdue that is being faced by
the bank over the years.

75
 1.2 SUGGESTION

It is recommended that bank to use more ratios, especially those in the study which
are so significant as improvement of their financial performance measures. axis bank
should probably consider the use of the fund to invest other opportunities to get a
profit, since they seem to be paying or expending more interest not only for the
majority of participants, but for businesses in general.

It is also recommended that axis bank owners/ managers request more research study
and financial analysis to their financial staff and also external examiner on bankruptcy
prediction models at relevant institutions such as universities. The few models
presented in this study may be used by axis bank as well, since they are simple and
important to know financial health of the bank.

The axis bank should have increased its current assets than its current liabilities to
make positive working capital. The bank should have decreased its current liabilities
by paying through the profit which is being made. The debt should been minimized to
keep debt ratio and debt-equity ratio to a minimum value efficiency use of asset good
as liquidity measures of Asset accounts such us total asset turnover of the bank are
significant increase in positive account side but decreases some accounts the point is
that there is no proper efficiency use of asset so axis bank executive have to consider
best asset position use

76
 5.3 CONCLUSION

The study of ratio Axis bank reveals the performance of the bank in terms of financial
aspects. It is found that there is an increase in current ratio of Axis Bank it is
increased year by year, and cash position of the bank is also increasing.
The Return on Equity of Axis Bank is fluctuating and its decreasing in 2017 and 2018.
The net profit margin ratio is goes decreasing over the period. It shows that the bank
profit is declines. The Axis Bank deposits and borrowing are increasing over the
period because of it the debt ratio of bank increasing so it is effecting the growth and
profit of the bank.
The Total asset Turnover Ratio and Fixed Assets Turnover Ratio of bank is not
satisfactory. The low turnover indicates that the bank isn’t using its assets
effectively.The Axis Bank Return on Assets is declining returns on assets are low
during the last years.

77
 CHAPTER NO.6

APPENDIX
Table no.4.12
Axis Bank Profit And Loss Account for The Year Ended 31 March (Rs.cr)

1. 2014 2015 2016 2017 2018

PARTICULARS

1. INCOME

Interest earned 30,641.16 35,478.60 40,988.04 44,542.16 45,780.31

Other income 74,05.22 8,365.05 9,371.46 11,691.31 10,967.09

TOTAL INCOME 38,046.38 43,843.65 50,359.50 56,233.47 56,747.40

2.EXPENSES

Interest expended 18,689.52 21,254.46 24,155.07 26,449.04 27,162.58

Operating expenses 7,900.77 9,203.74 10,100.82 12,199.91 13,990.35
Provisions 5,238.42 6,027.62 7,879.95 13,905.24 15,318.80
&contingencies

TOTAL 31,828.71 36,485.82 42,135.84 52,554.19 56,471.73

EXPENSES

3.net profit for the 6,217.67 7,357.82 8,223.66 3,679.28 275.68

year (1-2)

Balance in 10,029.26 13,501.45 17,623.49 23,766.46 2,4448.33

P&L A/C
Brought
forward from
previous
year.
Total 16,246.93 20,859.27 25,847.15 27,445.74 24,724.01

78
Axis Bank Limited - Balance Sheet Balance Sheet As At 31 March, (Rs in Cr.)

PARTICULARS SN. AMT AMT AMT

2014 2015 2016
CAPITAL AND
LIABILITIES

Capital 1 469.84 474.10 476.56

Reserves & Surplus 2 37,750.64 44,202.41 5,26,883.40

Deposits 3 2,80,944.56 3,22,441.93 3,57,967.56

Borrowings 4 50,290.94 79,758.26 99,226.37

Other Liabilities and 5 13,788.89 15,055.67 15,108.77

Provisions

TOTAL 3,83,244.88 4,61,932.39 5,25,467.61

ASSETS
Cash and Balances 6 17,041.31 19,818.83 22,361.14
with Reserve Bank of
India
Balances with Banks 7 11,197.37 16,280.19 10,964.29
and Money at Call
and Short Notice

Investments 8 1,13,548.43 1,32,342.83 1,22,006.20

Advances 9 2,30,066.75 2,81,083.02 3,38,773.72

Fixed Assets 10 24,102.10 25,143.10 35,231.71

Other assets 11 89,807.90 98,931.90 27,839.08

TOTAL 3,83,244,88 4,61,932.39 52,5467.61

Contingent liability 12 5,74,844.79 5,91,174.90 6,17,446.35

Bills for collection 13 3,66,015.78 4,90,086.86 5,12,794.65

79
 Axis Bank Limited - Balance Sheet Balance Sheet As At 31 March, (Rs in Cr.)

PARTICULARS S.N AMT 2017 AMT 2018

CAPITAL AND
LIABILITIES

Capital 1 479.01 513.31

Reserves & Surplus 2 55,901.34 62,931.95
Deposits 3 4,14,982.67 4,53,622.72
Borrowings 4 1,12,454.76 1,48,016.14
Other Liabilities and 5 27,582.91 2,62,454.53
Provisions

TOTAL 6,11,462.01 6,91,329.579

ASSETS

Cash and Balances with 6 30,857.94 35,481.05

Reserve Bank of India

Balances with Banks and 7 20,108.17 79,738,329

Money at Call and Short
Notice
Investments 8 1,29,018.34 1,53,876.08
Advances 9 3,81,080.26 4,396,50.30
Fixed Assets 10 38,102.33 39,716.79
Other assets 11 46,587.04 5,03,766,22
TOTAL 6,11,462.01 6,91,329.57
Contingent liability 12 6,73,136.34 7,35,297.69
Bills for collection 13 8,10,553.64 4,95,656.02

80
 CHAPTER NO.7

BIBLIOGRAPHY

https://en.wikipedia.org/wiki/Financial_ratio
https://www.edupristine.com/blog/ratio-analysis-introduction
https://www.toppr.com/guides/accountancy/accounting-ratios/meaning-objectives-
advantages-and-limitations-of-ratio-analysis/
https://www.bseindia.com/
https://www.bseindia.com/stock-share-price/axis-bank-ltd/axisbank/532215/
https://www.bseindia.com/stock-share-price/financials/annualreports/532215/
https://www.bseindia.com/bseplus/AnnualReport/532215/5322150314.pdf
https://www.bseindia.com/bseplus/AnnualReport/532215/5322150315.pdf
https://www.bseindia.com/bseplus/AnnualReport/532215/5322150316.pdf
https://www.bseindia.com/bseplus/AnnualReport/532215/5322150317.pdf
www.bseindia.com/bseplus/Annual Report/532215/5322150318.pdf
https://economictimes.indiatimes.com/

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