403 Financial Structure Of Axis Bank Ltd

Submitted to Sinhgad Institute of Management In Partial Fulfillment of Requirement for the Award of

POSTGRADUATE DIPLOMA IN MANAGEMENT By PRATEEK MARIWALA

Under the guidance of Prof.Fernandis

Sinhgad Institute of Management VADGAON [BK], PUNE-41 (MAHARASHTRA)

COMPANY PROFILE Axis Bank was the first new generation private sector bank to be established in India under the overall reform programme initiated by the Government of India in1991, under which nine new banking licenses were granted. The Bank was promoted by Unit Trust of India, the largest mutual fund in India, holding 87% of the equity. Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd and its four subsidiaries who were the co-promoters held the balance 13%. The Bank started its operations in 1994. Axis Banks first capital raising post inception was in 1998 through a public offering of primary shares and in subsequent years through equity allotment to a few other investors like CDC. Citicorp Banking Corporation, Bahrain, Karur Vysya Bank and Chrys Capital leading to a dilution in UTIs shareholding in the Bank. Further dilution of Promotors shareholding happened during Q4 ended of 2004, when the Bank raised US$ 239.30 Million of Capital through a GDR issue.The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding (other than promoters) at 57.60%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices and Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

AXIS BANK- Mission and Values Our Mission Customer Service and Product Innovation tuned to diverse needs of individual And corporate clientele. Continuous technology up gradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.

Core Values Customer Satisfaction through Providing quality service effectively and efficiently

"Smile, it enhances your face value" is a service quality stressed on Periodic Customer Service Audits. Maximizations of Stakeholder value Success through Teamwork, Integrity and People The banks business is divided into four segments: Retail, corporate, treasury and merchant banking. Apart from this the bank is also into insurance, investment banking, mortgage, financing, credit cards, and depository services amongst others. it is also registered on the following exchanges: OTCEI BSE NSE London stock exchange

GROWTH PROSPECT OF AXIS BANK

Over the last five years, the CAGR for loan growth for the banking industry has been 25-26 per cent; for Axis Bank it has been above 40 per cent. Nonetheless, the bank is still expected to grow its loan portfolio at 1.5-1.7x the industry average. In FY09 its advances grew at the rate of 37.5 per cent. In FY10 they are expected to grow at the rate of 27-28 per cent and in FY11 at 25 per cent. For the banking industry as a whole, the loan book is expected to grow at 18 per cent in FY10 and 16 per cent in FY11. Thus, Axis Banks fast pace of growth is expected to sustain over the next couple of years.

AXIS BANK FINANCIAL POSITION

GROWTH DEMAND DEPOSITS

CARDS BUSINESS Cards fee income (FY09 FY08)

Issuance:
Over 533,000 credit cards in force till end March, 09.
3rd largest 1st Indian

debit card base in the country

bank to launch travel currency cards in 9 currencies US$, Euro, GBP, AUD.
1st Indian

bank to launch remittance card & meal card

Source: www.axisbank.com

COMPOSITION OF RETAIL ASSETS Product wise composition of retail assets portfolio (March, 09)

Source: www.axisbank.com

REVENUE BREAK UP OF AXIS BANK

Source: www.axisbank.com

NETWORK Increasing Reach

Source: www.axisbank.com