A STUDY ON FINANCIAL PERFORMANCE ANALYSIS OF

AXIS BANK

PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION

FROM
OSMANIA UNIVERSITY

HYDERABAD
BY

Student Name: K. LAVANYA Hall Ticket No.:1111-21-684-021

UNDER GUIDANCE OF
Mrs. SAJIDA KHATOON
ASSISTANT PROFESSOR

DEPARTMENT OF COMMERCE

KASTURBA GANDHI DEGREE & PG COLLEGE FOR WOMEN (Affiliated to

OSMANIA UNIVERSITY, Hyderabad) West Marredpally, Secunderabad, 2021-2024.
 CERTIFICATION

This to certify that the project work titled “A STUDY ON FINANCIAL

PERFORMANCE OF AXIS BANK” submitted in partial fulfilment of the award of BBA
(FINANCE) Degree, Kasturba Gandhi Degree & P.G College for Women is a Bonafide
work done by

Student Name: K. LAVANYA Hall Ticket No.: 1111-21-684-021

Under the guidance of Mrs. SAJIDA KHATOON (Lecturer Name). This has not been
submitted to any other University or Institute for the award of any degree/diploma/certificate

Signature of the guide

Date: Place: Secunderabad

 DECLARATION

We hereby declare that this project report entitled “A STUDY ON FINANCIAL

PERFORMANCE ANALYSIS OF AXIS BANK” is submitted by us to the Department of
Commerce, Osmania University, Hyderabad, is a Bonafide work undertaken by us and is not
submitted to any other University or Institution for the award of any
degree/diploma/certificate.

Date:
Place:
Signature of the Student
 ACKNOWLEDGEMENT

We would like to thank the people who extended their immense heil to complete my project
work titled "A STUDY ON FINANCIAL PERFORMANCE ANALYSIS OF AXIS
BANK”

We would like to express our sincere gratitude to the Principal, DR.P. SUNITHA and Vice
Principal DR.R. RAJSHREE for giving us the opportunity to do the project.

We would also like to thank our Guide and Lecturer in BBA (FINANCE) Mrs. SAJIDA
KHATOON for guiding us throughout the project work and helping us out with her valuable
suggestions for this project work.

We are also thankful to our college Library staff, who directly or indirectly have been helpful
have been helpful in some or the other way.

Finally, our sincere thanks to our family and friends for giving us time, support and
encouragement, without whose co-operation our study would have been incomplete.

THANK YOU.

Student Name: K. LAVANYA Hall Ticket No.: 111121684021

INTERNSHIP CERTIFICATE
 ABSTRACT

Development of any country mainly depends upon the banking system. A bank is a financial
institution which deals with deposits and advances and other related services and receive
money from those who want to save on the form of deposits and it lends more to those who
need it. Axis Bank is one of the leading private sector banks in India with a strong network
of branches and a range of financial products and services that cater to the need of a diverse
customer base. The present paper is an attempt to evaluate the financial performance of Axis
Bank for five years period from 2018 to 2023. For the purpose of the study, secondary and
primary data are used. The study is set out to evaluate the financial performance of Axis
Bank. Net Profit ratio of the bank has shown positive sign, but some other parameters of
Cash flow indicators ratios of the bank is not satisfactory and bank also shown poor
performance in terms of Profit & Loss a/c. The Advances/Loans funds% of the bank was
performed well over the study period. Axis Bank needs to improve its Total Debt to Owners
Fund and Cash Earning Retention Ratio.
 TABLE OF CONTENTS

Chapter no. CONTENT Pg no.

INTRODUCTION
1.1 INTRODUCTION
1.2 STATEMENT OF THE PROBLEM
1.3 RELEVANCE & SCOPE OF THE STUDY
1.4 OBJECTIVES OF THE STUDY
1.5 RESEARCH METHODOLOGY
1.6 HYPOTHESIS OF THE STUDY
1 1.7 LIMITATIONS OF THE STUDY

REVIEW OF LITERATURE
2 2.1 THEORETICAL FRAMEWORK INCLUDING LITERATURE

COMPANY'S PROFILE
3.1 ABOUT
3.2 HISTORY
3.3 SERVICES
3.4 ISSUES & CONCERNS
3.5 INITIATIVES
3.6 SUBSIDIARIES
3 3.7 AQUISITIONS

4 DATA ANALYSIS & INTERPRETATION

FINDINGS, SUGGESTIONS AND CONCLUSIONS

5.1 FINDINGS
5.2 SUGGESTIONS
5 5.3 CONCLUSIONS

BIBLIOGRAPHY
QUESTIONNAIRE
 TABLE OF TABLES & CONTENTS

CHART NO. TITILE Pg no.

4.1 INVESTMENT VALUATION RATIOS
4.2 PROFITABILTY RATIOS
4.3 MANAGEMENT EFFICIENCY RATIOS
4.4 PROFIT AND LOSS ACCOUNT RATIOS
4.5 BALANCE SHEET RATIOS
4.6 DEBT COVERAGE RATIOS
4.7 LEVERAGE RATIOS
4.8 CASH FLOW INDICATOR RATIOS
COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING
MARCH '23, MARCH '22, MARCH '21, MARCH '20 ANDMARCH
4.9 '19
4.10 AGE RESPONDENTS
4.11 GENDER
4.12 OCCUPATION
4.13 AWARENESS ABOUT AXIS BANK
4.14 INTEREACTION
4.15 FINANCIAL STABILITY
4.16 FINANCIAL HEALTH
4.17 SATISFACTION
4.18 CONSIDERING AXIS BANK’s SERVICES IN FUTURE
4.19 CUSTOMER SERVICE QUALITY
 CHAPTER-1

INTRODUCTION

1.1 INTRODUCTION
A proficient banking system is recognized as a basic prerequisite for any economy as they play a crucial role
in the economic development of an economy. Financial statements are prepared to satisfy external reporting
obligations and for decision purposes. They play a vital role in setting the framework of managerial
decisions. Financial performance analysis includes analysis and interpretation of monetary statements in
such that it undertakes full diagnosis of the profitability and financial soundness of the business. Financial
performance analysis is the process of identifying the financial strengths and weaknesses of the firm by
properly establishing the relationship between the items of balance sheet and profit and loss account. These
statements are the result of the summarized process of accounting and are therefore the sources of data the
basis of which conclusions are drawn about profitability and therefore the financial position of the concern.

A study of liquidity, profitability, leverage, turnover, operational efficiency, market based and their
association with risk, and assessing the financial position is very much necessary to evaluate the financial
strength of the banking institution and to have knowledge about accounting ratios, analysis and its
interpretation. It helps to analyze the financial performance of the concern. A Financial Performance Report
is a summary of the Financial Performance of a Company that reports the financial health of a company
helping various investors and stakeholders take their investment decision.

Financial performance is a subjective measure of how well a firm can use assets from its primary mode of
business and generate revenues. The term is also used as a general measure of a firm's overall financial
health over a given period. Analysts and investors use financial performance to compare similar firms across
the same industry or to compare industries or sectors in aggregate.

The banking sector is one of the fastest growing sectors and a lot of funds are invested in banks. Indian
banking is the lifeline of the nation and its people. Without a sound and effective banking system in India it
cannot have a healthy economy. The Banking system of India should not only be hassle free, but it should be
able to meet new Challenges posed by the technology and any other external and internal factors. For the
past three decades India's banking system has several outstanding achievements to its credit. The most
striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In
fact, Indian banking system has reached even to the remote corners of the country. This is one of the main
reasons of India's growth process as a result, many private sectors have come up with a new variety of
products and services.

The new private sector banks came into operation after 1991 with the introduction of economic reforms and
financial sector reforms. There are certain criteria set for the establishment of the new private sector banks.
The bank should have a minimum net worth of 100 cores. Axis Bank, Bandhan Bank, HDFGC Bank,
Dhanlaxmi Bank, Federal Bank, ICICI Bank, Kotak Mahindra Bank, IDFC First Bank, are some of the
private sector banks in India.

1.2 STATEMENT OF THE PROBLEM

The FINANCIAL PERFORMANCE ANALYSIS of AXIS Bank has been selected for the present study.
The Reserve Bank of India regulates the banking service industry. Analysis of a bank’s financial statements
requires a distinct approach that recognizes a bank’s somewhat unique risks. Financial performance defines
the potential of business, economic interest of the company management and reliability of present or future
contractors. Therefore, financial performance analysis and identification of their weakness and strength
using financial performance indicators can contribute to management, shareholders, the public and the
regulator. Furthermore, the rationale of financial analysis is to diagnose the information contained in the
financial statement to judge the future earnings, ability to pay interest, profitability and dividend of the
banks.

1.3 RELEVANCE & SCOPE OF THE STUDY

The study will be limited to the financial statements of the bank to evaluate their financial performance. The
main scope of the study was to put practical aspects of the study into real life work experience. It includes
liquidity, profitability, and market-based ratio performance of the Bank. The present study does not cover
the human resource practices employee performance, performance of mutual funds in the Indian stock
market and the likes of it. The study applies ratio analysis based on last 5-year Annual financial report of the
axis bank in India i.e., 2018-2023.

1.4 OBJECTIVE OF THE STUDY

 To study the overall monetary performance of Axis Bank over a period of five years (2018-19 to
2022-23).
 To evaluate the financial performance of the Bank in terms of solvency, profitability, liquidity and
efficiency.
 To offer suggestions to improve the performance of the bank by collecting data from primary sources
through questionnaire.

1.5 RESEARCH METHODOLOGY

Data Collection: The research project is based on both primary and secondary data.
Secondary data are those data which have already been collected and stored. Secondary data is collected
from research sites.
Primary data are those data which are collected firsthand for the research purpose. Primary data is collected
through a questionnaire.
1.6 HYPOTHESIS OF THE STUDY

From the above objectives of the following, hypothesis is formulated to test the financial
performance and efficiency of the Axis Bank.
H0: There is no significant relationship between the financial position and performance of Axis Bank.

1.7 LIMITATIONS OF THE STUDY

1. The study is based on both primary and secondary data, this study does not provide a complete
picture of the economy.

2. The study is based on secondary data and the limitations of using secondary data may affect the
results.

3. The secondary data was taken from the five-year annual report of the Axis Bank. It may be possible
that the data shown in the annual report may be limited to the period which does not effectively show
the actual fluctuations of the bank profitability.

4. The survey conducted is confined to middle income group and findings cannot be generalized to the
entire India.

5. The sample size is limited to 41 responses only which is made on a random sampling.
 CHAPTER-2

REVIEW OF LITERRATURE
2.1 THEORETICAL FRAMEWORK INCLUDING LITERATURE

The theory applied in this study relates to Financial Management, particularly financial statement Analysis,
as it would facilitate financial performance analysis. The analysis of financial statements is generally
undertaken for evaluating the financial position/performance of the company, to be used by its stakeholders
such as Investors, Creditors and Managers. The outcome of analysis also helps in predicting financial
performance for the future period.

Priyanka Jha (2018)1 found that analyzing financial performance of public sector banks and private sector
banks in India. Her objective was to assess and compare the financial performance of both the banks. The
present study concluded that ICICI Bank has performed sounder as compared to PNB Bank.

Dr.Gagandeep Sharma and Divya Sharma (2017)2 discussed comparison and analysis of profitability of
top three Indian private sector banks. Their objective was to study the profitability ratios of the top three
private sector banks i.e. HDFC Bank, ICICI Bank and AXIS Bank. The study concluded that HDFC Bank is
found to be consistent based on cost to income ratio and return on net worth.

Pawan and Gorav (2016)3 this study is related to a comparative study on financial health ICICI Bank and
AXIS Bank. Their objective was to measure and compare the financial performance and health of ICICI
Bank and AXIS Bank. The study concluded that AXIS Bank performs well in terms of earnings per share,
assets turnover and debt-equity parameters. The overall performance of AXIS Bank is good compared to
ICICI Bank.

Namrata, Ramya, Lekha (2017)4, on their research paper “Analysis of financial performance of State Bank
of India using Camel approach”. The main objective of the paper was to analyze the financial performance
of State Bank of India over a period of five years. For this purpose, financial ratio analysis was used. For
this analysis various parameters, i.e. investment valuation ratio, profitability ratio, management ratio,
efficiency ratio was used. It is found from the result that performance of State Bank of India in the study
period has been excellent.

Maninder Kaur, Ritu Priya (2017)5, revealed on evaluation of Bank of Baroda and Punjab National Bank
with camel model. The study was based on secondary data and covering the period of 5years. For analyzing
the data, a statistical tool to test was used for the evaluation of financial performance of these two selected
banks. In the overall study, it was concluded that the financial performance of Bank of Baroda was better
than Punjab National Bank between the CAMEL ratios. The overall performance of SBI and ICICI bank
was good due to the adoption of modern technology.

Purohit, A. and Bothra P (2018)6, revealed on their research paper, “A CAMEL model analysis of selected
Public and Private Sector banking India”. In this study, they have measured the financial position of top two
major banks operating in India. For this purpose, one public sector bank namely state Bank of India and one
private sector bank namely ICICI bank has been selected as sample. It was revealed from the study that there
is no significant difference.
Sowbarnika and Jayanti (2019)7, examined on their research paper “A study of financial performance of
state bank of India. The study was undertaken to highlights the comparative study on the financial
performance of State Bank of India from 2010-11 to 2014-15. The study revealed that it has increased its
revenue by the implementation of innovative schemes for the public.

Khan and Jain (2011)8 have defined the analysis of Financial Statements as a process of evaluating the
relationship between parts of financial statements to obtain a better understanding of the firm’s position and
its performance. There are two broad approaches used to measure Bank performance, the Accounting
Approach, which makes use of financial ratios and secondly Econometric Techniques. Traditionally,
Accounting Methods are largely based on the use of financial ratios, which have been employed for
assessing Bank performance (Ncube, 2009).

Kumar (2012)9 has given a definition to camel rating system, according to him it is a means to categorize
banks based on their overall health, financial status, managerial and operational performance. In his study he
has chosen the SBI and its associates for checking the performance and concludes that State Bank of India is
always in the lead than its associates in every aspect of camel.

In a study conducted by Collis and Jarvis (2006)10 on financial information and the management of small
private companies in the U.K., the most useful sources of information are the periodic management account
(i.e. the balance sheet and income statement), cash flow information and bank statements (of course bank
statement are another form of cash flow information but generated externally). These sources of information
are used by eight (80) per cent of companies and this demonstrates the importance of controlling cash, which
previous research (Bolton, 1971, Birly & Niktari, 1995, Jarvis et al, 1996) suggest is critical to the success
and survival of a small business. 35 In the same research eight-seven (87) per cent of small companies
prepared profit and loss accounts and seventy-eight (78) per cent, balance sheet. These key financial
statements allow management to monitor the profitability of the business as well as its net assets.
Confirming the usefulness of cash flow information, the analysis shows that seventy-three (73) per cent use
bank reconciliation statements and more than fifty-five (55) percent use cash flow statements and forecast.
However, other competitive performance measures perceived in literature such as ratio analysis, industry
trends and inter-firm comparison are not widely used.

Collis and Jarvis (2002)11 then state that this may indicate that small companies experience problems in
gaining access to appropriate benchmarks but could also be the results of competitors filing abbreviated
accounts which reduces the amount of information available for calculating ratio and making comparison. In
addition, as many small companies operate in the service sector, they occupy niche markets and may be less
concerned with competition than those in other markets.

Melse (2004)12, reports that ratio analysis provides an insight into the financial health of a firm by looking
into its liquidity, solvability, profitability, activity and capital and market structure.

Jooste (2004)13 investigates that many authors agree that cash flow information is a better indicator of
financial performance than traditional earnings.

Largay and Stickney (1980) and Lee (1982)14 show that profits were increasing, W.T. Grant and Laker
Airways had severe cash flow problems prior to bankruptcy.

Jooste (2004)15 further states that users of financial statements around the world evaluate the financial
statements of companies to determine liquidity, assets activity, leverage, profitability and performance.
Users of financial statements use traditional balance sheet and income statements ratios for performance
evaluation. Therefore, along with traditional ratios, operating cash flow is also important when evaluating a
company’s performance (Jooste, 2004). Various literature states that the primary purpose of the cash flow
statement is to assess a company’s liquidity, solvency, viability and financial adaptability.

According to Everingham et al (2003)16 operating cash flow ratios are indicators of performance. They
determine the extent to which a company has generated sufficient funds.

Hr Machirajn international publishers (2009) 18 Efficiency can be considered from technical economical
or empirical considerations. Technical efficiency implies an 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.

Halkos and Salamouris (2004)19 conclude that financial ratios permit comparisons between the Banks and
the benchmark, which is usually the average of the industry sector.
 CHAPTER-3

COMPANY’S PROFILE
3.1 ABOUT

Axis Bank Limited, formerly known as UTI Bank (1993–2007), is an Indian multinational banking and
financial services company headquartered in Mumbai, Maharashtra. It is India's third largest private sector
bank by assets and fourth largest by market capitalization. It sells financial services to large and mid-size
companies, SMEs and retail businesses.
As of 30 June 2016, 30.81% shares are owned by the promoters and the 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% of shares are owned by
mutual funds, FIIs, banks, insurance companies, corporate bodies and individual investors.

3.2 HISTORY

The bank was founded on 3 December 1993 as UTI Bank, opening its registered office in Ahmedabad and a
corporate office in Mumbai. The bank was promoted jointly by the Administrator of the Unit Trust of India
(UTI), Life Insurance Corporation of India (LIC), General Insurance Corporation, National Insurance
Company, The New India Assurance Company, The Oriental Insurance Corporation and United India
Insurance Company. The first branch was inaugurated on 2 April 1994 in Ahmedabad by Manmohan Singh,
then finance minister of India.
In 2001 UTI Bank agreed to merge with Global Trust Bank, but the Reserve Bank of India (RBI) withheld
approval and the merger did not take place. In 2004, the RBI put Global Trust under moratorium and
supervised its merger with Oriental Bank of Commerce. The following year, UTI bank was listed on the
London Stock Exchange. In the year 2006, UTI Bank opened its first overseas branch in Singapore. The
same year it opened an office in Shanghai, China. In 2007, it opened a branch in the Dubai International
Financial Center and branches in Hong Kong.

On 30 July 2007, UTI Bank changed its name to Axis Bank.

In 2009, Shikha Sharma was appointed as the MD and CEO of Axis Bank.
In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations.
The Indian government intends to sell a 20.7% stake in Axis Bank in February 2014 for 57 billion rupees,
equivalent to 925 million dollars.
On 1 January 2019, Amitabh Chaudry took over as MD and CEO.
In the year 2021, the Bank had reduced its stake in Yes Bank from 2.39 per cent to 1.96 per cent.
3.3 SERVICES

Retail banking
The bank offers lending services to individuals and small businesses, 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
Transaction banking: Axis Bank provides products and services related to transaction banking 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.
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 brokering besides M&A advisory. Axis Trustee Services Limited is
engaged in trusteeship activities, acting as a debenture trustee and as a trustee to various securitization trusts.
International banking
The bank offers corporate banking, trade finance, treasury and risk management through the branches in
Singapore, Hong Kong, DIFC, Shanghai and Colombo, and as also retail liability products from its branches
at Hong Kong and Colombo. The representative office at Dhaka was inaugurated during the current financial
year.

3.4 ISSUES & CONCERNS

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 several
Indian banks, including Axis Bank. Consequently, penalties of ₹50 million (US$630,000) on Axis Bank,
₹45 million (US$560,000) on HDFC Bank and ₹10 million (US$130,000) on ICICI Bank were imposed by
the Reserve Bank of India.
2016 Demonetization related money laundering
Following the 2016 Indian Banknote Demonetization, several 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.
3.5 INITIATIVES

Axis Thought Factory

An innovation hub located in Bengaluru has an in-house innovation team and an accelerator program,
primarily working on artificial intelligence. With this launch, Axis Bank became the first Indian bank to
introduce a dedicated innovation lab in the country.
Asha home loans
Asha home loans target first-time home buyers in the lower-income segment. The product offers loans from
₹100,000 (US$1,300)–₹1.5 million (US$19,000) in small towns (population less than 1 million) and up to
₹2.8 million (US$35,000) in larger towns (population over 1 million), to customers with family incomes of
₹8,000 (US$100)–₹10,000 (US$130) per month and above.
eKYC
eKYC (electronic know your customer) is an online, paperless Aadhaar card-based process for fulfilling
KYC requirements to start investing in mutual funds without the submission of any documents. Axis Bank
partnered with Visa Inc. to launch the 'eKYC' facility and was the first organization in India to introduce
biometrics-based KYC.

3.6 SUBSIDIARIES

Axis Capital Ltd.

Axis Capital Ltd. was incorporated in India as a wholly owned subsidiary of the bank on 6 December 2005
and received its certificate of commencement of business on 2 May 2006. Certain businesses of M/s. Enam
Securities Pvt. Ltd. were merged with Axis Capital Ltd. as part of a scheme and the following companies
became direct subsidiaries of Axis Capital:

 Axis Securities Ltd. (formerly Enam Securities Direct Pvt. Ltd.)

 Axis Finance Ltd. (formerly Enam Finance Pvt. Ltd.)
 Axis Securities Europe Ltd. (formerly Enam Securities Europe Ltd.)
 Enam International Ltd., UAE (voluntarily dissolved with effect from 24 August 2014)
Axis Securities Ltd., Axis Finance Ltd. and Axis Securities Europe Ltd. later became direct subsidiaries of
the bank in line with the RBI directives.

Axis Securities Ltd.

Axis Securities Ltd. was incorporated in India on 21 July 2006. The sales and securities business, including
the retail broking business of Axis Capital Ltd, was merged with ASL on 25 May 2013. ASL is a wholly
owned subsidiary of the bank and offers retail asset products, credit cards and retail brokerage services.
Axis Private Equity Ltd.
Axis Private Equity Ltd. was incorporated in India as a wholly owned subsidiary of the bank on 3 October
2006 and received its certificate of commencement on 4 December 2006. APE manages investments,
venture capital funds and offshore funds.

Axis Mutual Fund

Axis Mutual Fund is a subsidiary of Axis Bank established in 2009 with headquarters in Mumbai.

3.7 AQUISITIONS

2017: Axis Bank acquired Freecharge, a digital marketplace for financial services in 2017 for approximately
₹385 crore.

2023: In March 2023 Axis bank completed acquisition of Citi Group’s Indian subsidiary Citibanks India’s
consumer banking business for a cash consideration of ₹12,325 crore (US$1.5 billion) which was initially
announced in March 2022 thus taking almost one year in the process.
 CHAPTER-4

DATA ANALYSIS
AND
INTERPRETATION
DATA ANALYSIS & INTERPRETATION FROM SECONDARY SOURCE
KEY FINANCIAL RATIOS

TABLE 4.1

INVESTMENT VALUATION RATIO

Mar '23 Mar '22 Mar '21 Mar '20 Mar '19
Face Value 2 2 2 2 2
Dividend Per
Share 1 1 -- -- 1
Operating
Profit Per
Share (Rs) 43.87 10.33 -16.59 -34.94 -21.18
Net
Operating
Profit Per
Share (Rs) 276.79 219.49 207.74 221.98 213.82
Free
Reserves Per
Share (Rs) -- -- -- -- --
Bonus in
Equity
Capital -- -- -- -- --

INTERPRETATION

The graphical representation allows us to visually analyze the trends and fluctuations in these investment
valuation ratios over time. It shows improvements in profitability metrics like operating profit per share and
net operating profit per share, while also highlighting dividend distributions in specific years. Additionally,
it reveals consistency in face value and the absence of data for free reserves per share.
FIGURE 4.1 INVESTMENT VALUATION RATIOS
TABLE 4.2

PROFITABILITY RATIOS
Mar '23 Mar '22 Mar '21 Mar '20 Mar '19
Interest Spread 6.35 6.12 6.16 6.22 6.37
Adjusted Cash
Margin (%) 22.3 16.99 9.6 3.07 7.9
Net Profit
Margin 11.24 19.33 10.35 2.59 8.5
Return On
Long Term
Fund (%) 47.3 44.88 42.53 49.83 60.36
Return On Net
Worth (%) 7.66 11.32 6.48 1.57 7.01
Adjusted
Return On Net
Worth (%) 7.66 11.32 6.48 1.57 7.01
Retun On
Assets
Excluding
Revaluations 406.24 374.71 331.63 301.05 259.27
Return On
Assets
Including
Revaluations 406.24 374.71 331.63 301.05 259.27

INTERPRETATION

The data suggests that Axis Bank experienced improvements in profitability, efficiency, and returns over the
five-year period, with notable increases in adjusted cash margin, net profit margin, and return on assets.
However, there were fluctuations in certain ratios, indicating variations in performance during specific
periods.
FIGURE 4.2 PROFITABILTY RATIOS
TABLE 4.3

Management Efficiency Ratios

Mar '23 Mar '22 Mar '21 Mar '20 Mar '19
Net Interest Income / Total
Funds 3.45 3.05 3.06 2.94 2.91
Interest Income / Total Funds 6.83 6.21 6.66 7.3 7.37
Non-Interest Income / Total
Funds 1.32 1.4 1.55 1.81 1.76
Interest Expended / Total
Funds 3.39 3.15 3.6 4.36 4.46
Operating Expense / Total
Funds 2.36 2.76 3.59 4.09 3.64
Profit Before Provisions /
Total Funds 1.36 1.6 0.92 0.57 0.93
Net Profit / Total Funds 0.54 0.52 -1.08 -1.97 -0.99
Loans Turnover 0.11 0.1 0.11 0.12 0.12
Total Income / Capital
Employed (%) 8.16 7.61 8.21 9.11 9.13
Interest Expended / Capital
Employed (%) 3.39 3.15 3.6 4.36 4.46
Total Assets Turnover Ratios 0.07 0.06 0.07 0.07 0.07
Asset Turnover Ratio 0.07 0.06 0.07 0.08 0.08

INTERPRETATION

The data suggests that Axis Bank experienced improvements in management efficiency, cost management,
and operational profitability over the five-year period, with fluctuations in certain ratios reflecting variations
in performance during specific periods.
FIGURE 4.3 MANAGEMENT EFFICIENCY RATIOS
TABLE 4.4

Profit And Loss Account Ratios

Mar '23 Mar '22 Mar '21 Mar '20 Mar '19
Interest
Expended /
Interest Earned 49.57 50.83 54.06 59.76 60.52
Other Income /
Total Income 16.23 18.43 18.91 19.87 19.28
Operating
Expense / Total
Income 28.96 36.27 43.73 44.86 39.87
Selling
Distribution
Cost
Composition 0.16 0.1 9.68 0.17 0.18

INTERPRETATION

The data suggests that Axis Bank experienced improvements in managing interest expenses, controlling
operating expenses, and diversifying income sources over the five-year period. These improvements
contribute to the bank's overall financial health and profitability. However, fluctuations in certain ratios
indicate variations in performance during specific periods, which may require further analysis to understand
underlying factors or trends.
FIGURE 4.4 PROFIT & LOSS ACCOUNT RATIOS
TABLE 4.5

Balance Sheet Ratios

Capital Advances /
Adequacy Loans Funds
Ratio (%)
Mar '23 17.64 79
Mar '22 18.54 76.22
Mar '21 19.12 76.14
Mar '20 17.53 76.74
Mar '19 15.84 75.95

INTERPRETATION

The data suggests that Axis Bank maintained relatively strong capital adequacy levels over the years, with a
slight increase in the proportion of funds allocated to lending activities. These ratios provide insights into the
bank's financial strength, risk management practices, and lending strategy, which are crucial considerations
for investors, regulators, and other stakeholders.
FIGURE 4.5 BALANCE SHEET RATIOS
TABLE 4.6

Debt Coverage Ratios

Mar '23 Mar '22 Mar '21 Mar '20 Mar '19
Credit
Deposit
Ratio 87.81 87.08 88.7 89.71 93.25
Investment
Deposit
Ratio 31.91 32.81 28.41 27.91 32.82
Cash Deposit
Ratio 9.06 9.54 10.15 10.1 7.04
Total Debt to
Owners Fund 9.07 8.75 8.37 9.28 10.52
Financial
Charges
Coverage
Ratio 1.78 1.75 1.77 1.65 1.59
Financial
Charges
Coverage
Ratio Post
Tax 1.54 1.41 1.22 1.06 1.16

INTERPRETATION

The data suggests that Axis Bank maintained relatively stable debt coverage ratios over the
years, with fluctuations reflecting changes in the bank's financial structure, investment
strategies, and profitability. These ratios provide insights into the bank's ability to manage its
debt, liquidity, and financial obligations, which are crucial factors for assessing its financial
health and risk profile.
FIGURE 4.6 DEBT COVERAGE RATIOS
TABLE 4.7

Leverage Ratios
Current Ratio Quick Ratio
Mar '23 0.07 16.76
Mar '22 0.09 16.52
Mar '21 0.11 17.05
Mar '20 0.13 17.6
Mar '19 0.1 17.84

INTERPRETATION

While the Current Ratio decreased over the years, the Quick Ratio remained relatively stable, indicating that
Axis Bank maintained a strong liquidity position and the ability to meet short-term obligations effectively.
However, a decreasing Current Ratio may warrant further analysis to understand the underlying reasons and
potential implications for the bank's financial health and risk management.
FIGURE 4.7 LEVERAGE RATIOS

TABLE 4.8
 Cash Flow Indicator Ratios
Mar '23 Mar '22 Mar '21 Mar '20 Mar '19
Dividend
Payout
Ratio
Net
Profit 3.2 -- -- -- --
Dividend
Payout
Ratio
Cash
Profit 1.35 -- -- -- --
Earning
Retentio
n Ratio 96.8 100 100 100 100
Cash
Earning
Retentio
n Ratio 98.65 100 100 100 100
Adjusted
Cash
Flow
Times 41.76 58.55 93.85 266.69 101.83

INTERPRETATION

AXIS BANK maintained a high level of earnings retention and did not distribute dividends from net profits
and cash profits during the period. The significant increase in Adjusted Cash Flow Times indicates improved
coverage of fixed charges with cash flow, which reflects positively on the bank's financial strength and
ability to meet its debt obligations.

FIGURE 4.8 CASH FLOW INDICATOR RATIO

TABLE 4.9 COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING
MARCH ‘23, MARCH ‘22, MARCH ‘21, MARCH ‘20 AND MARCH ‘19.
 Axis Bank
Standalone Balance Sheet ........in Rs.Cr........
Mar '23 Mar '22 Mar '21 Mar '20 Mar '19
12 mths 12 mths 12 mths 12 mths 12 mths
Capital and Liabilities:
Total Share Capital 615.37 613.95 612.75 564.34 514.33
Equity Share Capital 615.37 613.95 612.75 564.34 514.33
Share Application Money 423.41 148.6 0 0 0
Reserves 124,377.87 114,411.51 100,990.26 84,383.51 66,161.97
Net Worth 125,416.65 115,174.06 101,603.01 84,947.85 66,676.30
Deposits 946,945.21 821,720.91 707,306.08 640,104.94 548,471.34
Borrowings 186,300.04 185,133.86 142,873.16 147,954.13 152,775.78
Total Debt 1,133,245.25 1,006,854.77 850,179.24 788,059.07 701,247.12
Other Liabilities &
Provisions 58,663.63 53,149.28 44,336.17 42,157.90 33,073.12
Total Liabilities 1,317,325.53 1,175,178.11 996,118.42 915,164.82 800,996.54
Assets
Cash & Balances with RBI 66,117.76 94,034.51 51,808.56 84,959.24 35,099.03
Balance with Banks, Money
at Call 40,293.05 16,952.62 9,921.26 12,309.04 32,105.60
Advances 845,302.84 707,695.95 623,720.19 571,424.16 494,797.97
Investments 288,814.83 275,597.20 226,119.62 156,734.32 174,969.28
Gross Block 4,597.40 4,363.22 4,135.32 3,838.59 3,763.94
Net Block 4,597.40 4,363.22 4,135.32 3,838.59 3,763.94
Capital Work In Progress 136.45 209.13 109.70 474.31 272.69
Other Assets 72,063.20 76,325.48 80,303.76 85,425.16 59,988.01
Total Assets 1,317,325.53 1,175,178.11 996,118.41 915,164.82 800,996.52
Contingent Liabilities 1,509,425.48 1,359,052.01 130,679.03 970,811.51 807,738.13
Book Value (Rs) 406.24 374.71 331.63 301.05 259.27
DATA ANALYSIS AND INTERPRETATION FROM PRIMARY SOURCE

Integrating survey data based on people's viewpoints after analyzing Axis Bank's financial statements can
offer valuable insights into customer perceptions, satisfaction levels, and overall experiences.

TABLE 4.10
AGE RESPONDENTS

NO. OF
AGE RESPONDENTS PERCENTAGE
18-25 23 56.1
25-35 16 39
35-50 1 2.4
50 above 1 2.4

PIE DAIGRAM 4.10

INTERPRETATION

 Most respondents fall into the 18-25 age group, with 23 respondents, constituting approximately
56.1% of the total.
 The 25-35 age group is the next most represented, with 16 respondents, accounting for about 39% of
the total.
 The 35-50 age group and the 50 above age group each have 1 respondent, making up 2.4% of the
total each.
TABLE 4.11
GENDER

NO. OF
GENDER RESPONDENETS PERCENTAGE
MALE 19 46.3
FEMALES 21 51.2
OTHERS 1 2.4

PIE DIAGRAM 4.11

INTERPRETATION

 There are 19 male respondents, accounting for approximately 46.3% of the total.
 The female respondents are slightly higher in number, with 21 respondents, constituting about 51.2%
of the total.
 One respondent identifies as "Others," representing 2.4% of the total.

TABLE 4.12
OCCUPATION

NO. OF
OCCUPATION RSPONDENTS PERCENTAGE
Employed 18 43.9
Student 19 46.3
Homemaker 2 4.9
Legend 1 2.4
Personal 1 2.4

PIE DIAGRAM 4.12

INTERPRETATION

 Among the respondents, 18 individuals identify as Employed, constituting approximately 43.9% of

the total.
 The student category has the highest number of respondents, with 19 individuals, making up about
46.3% of the total.
 There are 2 respondents who identify as Homemakers, representing approximately 4.9% of the total.
 One respondent identifies each as Legend and Personal, accounting for 2.4% of the total each.

TABLE 4.13
AWARENESS ABOUT AXIS BANK

NO. OF
AWARENESS RESPONDENTS PERCENTAGE
YES 33 80.5
NO 7 17.1
MAYBE 1 2.4

PIE DIAGRAAM 4.13

INTERPRETATION

 Among the respondents, 33 individuals indicate they are aware, constituting approximately 80.5% of
the total.
 There are 7 respondents who state they are not aware, representing about 17.1% of the total.
 One respondent expresses uncertainty, representing approximately 2.4% of the total.

TABLE 4.14
INTEREACTION

NO. OF
INTERACTION RESPONDENTS PERCENTAGE
REGULARLY 9 22

OCCASIONALLY 15 36.6
RARELY 10 24.4
NEVER 7 17.1

PIE DIAGRAM 4.14

INTERPRETATION

 Among the respondents, 9 individuals state that they interact regularly, constituting approximately
22% of the total.
 There are 15 respondents who indicate they interact occasionally, representing about 36.6% of the
total.
 10 respondents claim they interact rarely, making up approximately 24.4% of the total.
 7 respondents state they never interact, accounting for around 17.1% of the total.

TABLE 4.15
FINANCIAL STABILITY

RATING NO. OF RESPONDENTS PERCENTAGE

1 2 4.9
2 3 7.3
3 8 19.5
4 18 43.9
5 10 24.4

GRAPH 4.15

INTERPREATION

 The data indicates a distribution of ratings across the five-point scale.

 Most respondents (43.9%) gave a rating of 4, suggesting a relatively high level of satisfaction or
approval.
 About a quarter of respondents (24.4%) gave a rating of 5, indicating an even higher level of
satisfaction.
 Approximately one-fourth of respondents (19.5%) gave a rating of 3, suggesting a moderate level of
satisfaction.
 A smaller proportion of respondents (7.3% and 4.9%) gave ratings of 2 and 1, respectively,
indicating lower levels of satisfaction.

TABLE 4.16
FINANCIAL HEALTH

FINANCIAL NO. OF
HEALTH RESPONDENTS PERCENTAGE
PROFITABILITY 10 24.4
CUSTOMER
SATISFACTION 19 46.3
STABILITY 8 19.5
INNOVATION 4 9.8

PIE DIAGRAM 4.16

INTERPRETATION

 The data suggests that respondents perceive Customer Satisfaction as the most critical aspect of Axis
Bank's financial health, with the highest percentage of respondents (46.3%) emphasizing this factor.
 Profitability and Stability are also considered important by a significant proportion of respondents,
with 24.4% and 19.5%, respectively, highlighting these aspects.
 Innovation is perceived as less critical compared to the other factors, with only 9.8% of respondents
identifying it as a key component of Axis Bank's financial health.

TABLE 4.17
SATISFACTION

NO. OF
SATISFACTION RESPONDENTS PERCENTAGE
SATISFIED 17 41.5
NEUTRAL 23 56.1
DISSATISFIED 1 2.4

PIE DIAGRAM 4.17

INTERPRETATION

 Most respondents (56.1%) expressed a Neutral sentiment, indicating that they neither strongly agree
nor disagree with the aspect being evaluated.
 A significant proportion of respondents (41.5%) reported being Satisfied, suggesting a positive
sentiment overall.
 A minority of respondents (2.4%) reported being Dissatisfied, indicating that there are some
individuals who have negative perceptions or experiences regarding the aspect being assessed.

TABLE 4.18
CONSIDERING AXIS BANK’s SERVICES IN FUTURE

NO. OF
CONSIDERATION RESPONDENTS PERCENTAGE
YES 20 48.3
NO 2 4.9
MAY BE 19 48.8

PIE DIAGRAM 4.18

INTERPRETATION

 Nearly half of the respondents (48.3%) expressed a positive inclination, indicating they would
consider the aspect.
 A small proportion of respondents (4.9%) stated they would not consider the aspect, suggesting a
clear negative sentiment among this group.
 A significant portion of respondents (48.8%) expressed uncertainty, indicating that they may or may
not consider the aspect, representing a mixed sentiment.

TABLE 4.19
CUSTOMER SERVICE QUALITY

CUSTOMER SERVICE NO. OF

QUALITY RESPONDENTS PERCENTAGE
EXCELLENT 11 26.8
GOOD 24 58.5
AVERAGE 5 12.2
POOR 1 2.4

PIE DIAGRAM 4.19

INTERPRETATION

 Most respondents (58.5%) rated the customer service quality as Good, indicating a positive
perception overall.
 A notable portion of respondents (26.8%) rated it as Excellent, suggesting a high level of satisfaction
among this group.
 A smaller proportion of respondents (12.2%) rated it as Average, indicating a neutral sentiment or
room for improvement.
 A minority of respondents (2.4%) rated it as Poor, highlighting potential areas of concern or
dissatisfaction that need to be
 CHAPTER-5

FINDINGS, SUGGESTIONS
AND
CONCLUSION
5.1 FINDINGS

 AXIS BANK has the highest Investment Valuation Ratio in Net Operating Profit Per Share (Rs.) of
276.79 in the year ending Mar ‘23.
 AXIS BANK has the highest Profitability Ratio in Return on Assets Excluding Revaluations of
406.24 in the year ending Mar ‘23.
 AXIS BANK has the highest Profitability Ratio in Return on Assets Including Revaluations of
406.24 in the year ending Mar ‘23.
 The BANK has experienced improvements in Management Efficiency, the Net Profit from -0.99 in
the year ending Mar ‘19 to 0.54 in the year ending Mar ‘23.
 The Bank has experienced a decline in Profit and Loss Account, Interest Expended/ Interest Earned
went down from 60.52 in the year ending Mar ‘19 to 49.47 in the year ending Mar ‘23.
 In Balance Sheet Ratios the Capital Adequacy Ratio was 19.12 in the year ending Mar ‘21.
 AXIS BANK has the highest Advances/ Loans Funds% than Capital Adequacy ratio in Balance
Sheet Ratios from the year ending Mar ‘19 to Mar ‘23.
 The BANK has shown variability in Total Debt to Owners Fund Ratio from 10.52 in the year ending
Mar ‘19 to 9.07 in the year ending Mar ‘23 suggesting changes in the bank’s capital structure.
 The BANK has the highest Current Ratio of 0.13 in the year ending Mar ‘20 and decreased over the
years to 0.07 in the year ending Mar ‘23.
 AXIS BANK has the lowest Cash Earning Retention Ratio of 98.65 in the year ending Mar ‘23.
 AXIS BANK has demonstrated consistent profitability over the years, with positive trends in key
financial ratios, the net worth has increased over the years.
5.2 SUGGESTIONS

 It is recommended that banks 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 funds to invest in other opportunities to make
a profit, since they seem to be paying or expending more interest not only for most
participants, but for businesses in general.

 It is also recommended that axis bank owners/ managers request more research study
and financial analysis from their financial staff and 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 bank’s efficiency can be increased by streamlining the workforce, improving

technology integration and containing compliance costs.

 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.
5.3 CONCLUSION

The study provided a great opportunity to study about one of the leading Banks in India. It
also helps to understand the how much a banking sector is influencing a developing country
like India.

The banking sector has shown a remarkable responsiveness to the needs of the planned
economy. It has brought about considerable progress in its efforts at deposit mobilization and
has taken several measures in the recent past for accelerating the rate of growth of deposits.
The activities of commercial banking have growth in multi-directional ways as well as multi-
dimensional manner. In a way, commercial banks have emerged as key financial agencies for
rapid economic development. By pooling the savings together, banks can make available
funds to specialized institutions which finance different sectors of the economy, needing
capital for various purposes, risks and durations.

The overall financial performance of Axis Bank for the period of 2016-2020 is discussed
here. Based on the findings of the study it can be concluded that financial ratios can help
institutions to determine their financial strength. It can also help present shareholders and
prospective shareholders or investors to make sound decisions about holding shares, buying
additional shares or selling the shares. Addition to this, it also shows how the management
are performing based on the shareholders or investors inputs. It also helps to forecast future
performance.
BIBLIOGRAPHY

 Business News | Stock and Share Market News | Financial News. (n.d.).
www.Moneycontrol.Com. Retrieved May 15, 2021, from
https://www.moneycontrol.com/financials/axisbank/balance-sheetVI/AB16.

 Company’s Profile - Third-Largest Private Sector Bank in India | Axis Bank. (n.d.).
www.Axisbank.Com. Retrieved June 14, 2021, from
https://www.axisbank.com/aboutus/corporate-profile.

 Axis Bank Ltd Balance Sheet, Axis Bank Ltd Financial Balance Sheet - The Financial
Express. (n.d.). www.Financialexpress.Com. Retrieved May 18, 2021, from
https://www.financialexpress.com/market/stock-market/axis-bank-ltd-stockprice/
financials-balance-sheet/.

 Axis Bank. (n.d.). Wikipedia. Com. Retrieved May 19, 2021, from
https://en.wikipedia.org/wiki/Axis_Bank.
QUESTIONNAIRE
As a part of my academic study the Questionnaire aims to determine the “FINANCIAL
PERFORMANCE ANALYSIS OF AXIS BANK”.
Your contribution is crucial to this research in understanding the financial
performance of the AXIS BANK. Rest assured, all information shared here will remain
confidential and will be used for research purposes only. Kindly provide your honest
response to ensure the integrity of the research.

NAME:

AGE

a) 18-25
b) 25-35
c) 35-5-
d) 50 above
GENDER

a) MALE
b) FEMALE
c) Others
OCCUPATION

a) Employed
b) Student
c) Homemaker
d) Others
Are you familiar with Axis Bank

a) Yes
b) No
c) Maybe

How often do you interact with Axis Bank's services?

a) Regularly
b) Occasionally
c) Rarely
d) Never
Based on your perception or knowledge, how would you rate Axis Bank's financial stability?

a) 1
b) 2
c) 3
d) 4
e) 5

What aspects of a bank's performance do you consider important when evaluating its financial
health?

a) Profitability
b) Customer Satisfaction
c) Stability
d) Innovation

How would you rate your overall satisfaction with Axis Bank's services?

a) Satisfied
b) Neutral
c) Dissatisfied

Would you consider investing in or using Axis Bank's services in the future?

a) Yes
b) No
c) Maybe

How would you rate Axis Bank's customer service quality?

a) Excellent
b) Good
c) Average
d) Poor